Document:

Unassociated Document

    
      	 
	 
	
              STRUCTURED
                ASSET MORTGAGE INVESTMENTS II INC.,

            
	 
	
              Depositor,

            
	 
	
              and

            
	 
	
              WELLS
                FARGO BANK, N.A.,

            
	 
	
              Grantor
                Trust Trustee

            
	 
	 
	 
	 
	 	 	 
	 	
               

              GRANTOR
                TRUST AGREEMENT

              Dated
                as of August 31, 2007

            	 
	 	 	 
	 
	 
	 
	
              $614,251,145

            
	 
	
              Bear
                Stearns Structured Products Inc. Trust 2007-R6

              Grantor
                Trust Certificates

              Series
                2007-R6

            
	 
	 
	 
	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              ARTICLE
                I

            	
              DEFINITIONS

            
	 	
              Section
                1.01

            	
              Defined
                Terms.

            
	
              ARTICLE
                II

            	
              CONVEYANCE
                OF THE UNDERLYING SECURITIES; ORIGINAL ISSUANCE OF GRANTOR TRUST
                CERTIFICATES

            
	 	
              Section
                2.01

            	
              Conveyance
                of the Underlying Securities.

            
	 	
              Section
                2.02

            	
              Acceptance
                of Trust Fund by Grantor Trust Trustee; Initial Issuance of Grantor
                Trust
                Certificates.

            
	 	
              Section
                2.03

            	
              Representations
                and Warranties of the Depositor and the Grantor Trust
                Trustee.

            
	 	
              Section
                2.04

            	
              Grantor
                Trust

            
	
              ARTICLE
                III

            	
              ADMINISTRATION
                OF THE UNDERLYING SECURITIES; PAYMENTS AND REPORTS TO GRANTOR TRUST
                CERTIFICATEHOLDERS

            
	 	
              Section
                3.01

            	
              Administration
                of the Trust Fund and the Underlying Securities.

            
	 	
              Section
                3.02

            	
              Collection
                of Monies.

            
	 	
              Section
                3.03

            	
              Establishment
                of Certificate Account; Deposits Therein.

            
	 	
              Section
                3.04

            	
              Permitted
                Withdrawals From the Certificate Account.

            
	 	
              Section
                3.05

            	
              Distributions.

            
	 	
              Section
                3.06

            	
              Statements
                to Grantor Trust Certificateholders.

            
	 	
              Section
                3.07

            	
              Access
                to Certain Documentation and Information.

            
	 	
              Section
                3.08

            	
              Calculation
                of Distribution Amounts.

            
	 	
              Section
                3.09

            	
              Annual
                Statement as to Compliance.

            
	 	
              Section
                3.10

            	
              Assessments
                of Compliance and Attestation Reports.

            
	 	
              Section
                3.11

            	
              Reports
                Filed with Securities and Exchange Commission.

            
	
              ARTICLE
                IV

            	
              THE
                CERTIFICATES

            
	 	
              Section
                4.01

            	
              The
                Grantor Trust Certificates.

            
	 	
              Section
                4.02

            	
              Registration
                of Transfer and Exchange of Grantor Trust Certificates.

            
	 	
              Section
                4.03

            	
              Mutilated,
                Destroyed, Lost or Stolen Grantor Trust Certificates.

            
	 	
              Section
                4.04

            	
              Persons
                Deemed Owners.

            
	
              ARTICLE
                V

            	
              THE
                GRANTOR TRUST TRUSTEE

            
	 	
              Section
                5.01

            	
              Duties
                of Grantor Trust Trustee.

            
	 	
              Section
                5.02

            	
              Certain
                Matters Affecting the Trustee and the Grantor Trust
                Trustee

            
	 	
              Section
                5.03

            	
              Grantor
                Trust Trustee Not Liable for Certificates or Underlying
                Securities.

            
	 	
              Section
                5.04

            	
              Grantor
                Trust Trustee May Own Grantor Trust Certificates.

            
	 	
              Section
                5.05

            	
              Grantor
                Trust Trustee’s Fees and Expenses.

            
	 	
              Section
                5.06

            	
              Eligibility
                Requirements for Grantor Trust Trustee.

            
	 	
              Section
                5.07

            	
              Resignation
                and Removal of the Grantor Trust Trustee

            
	 	
              Section
                5.08

            	
              Successor
                Grantor Trust Trustee

            
	 	
              Section
                5.09

            	
              Merger
                or Consolidation of Grantor Trust Trustee

            
	 	
              Section
                5.10

            	
              Appointment
                of Co-Grantor Trust Trustee or Separate Grantor Trust
                Trustee.

            
	
              ARTICLE
                VI

            	
              THE
                DEPOSITOR

            
	 	
              Section
                6.01

            	
              Liability
                of the Depositor.

            
	 	
              Section
                6.02

            	
              Merger,
                Consolidation or Conversion of the Depositor.

            
	 	
              Section
                6.03

            	
              Limitation
                on Liability of the Depositor and Others.

            
	
              ARTICLE
                VII

            	
              TERMINATION

            
	 	
              Section
                7.01

            	
              Termination.

            
	
              ARTICLE
                VIII

            	
              MISCELLANEOUS
                PROVISIONS

            
	 	
              Section
                8.01

            	
              Amendment.

            
	 	
              Section
                8.02

            	
              Counterparts.

            
	 	
              Section
                8.03

            	
              Limitation
                on Rights of Grantor Trust Certificateholders.

            
	 	
              Section
                8.04

            	
              Governing
                Law.

            
	 	
              Section
                8.05

            	
              Notices.

            
	 	
              Section
                8.06

            	
              Severability
                of Provisions.

            
	 	
              Section
                8.07

            	
              Successors
                and Assigns.

            
	 	
              Section
                8.08

            	
              Article
                and Section Headings.

            
	 	
              Section
                8.09

            	
              Notices
                to Rating Agencies.

            
	 	
              Section
                8.10

            	
              Acts
                of Grantor Trust Certificateholders

            
	 	 	 

    

    

    
      	
              Exhibit
                A

            	
              -

            	
              Form
                of Grantor Trust Certificates

            
	
              Exhibit
                B

            	
              -

            	
              Form
                of Annual Certification

            
	
              Exhibit
                C

            	
              -

            	
              Servicing
                Criteria to Be Addressed in Assessment of Compliance

            
	
              Exhibit
                D

            	
              -

            	
              Form
                10-D, Form 8-K and Form 10-K Reporting Responsibility

            
	
              Exhibit
                E

            	
              -

            	
              Additional
                Disclosure Notification

            
	
              Schedule
                A

            	
              -

            	
              Underlying
                Securities

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    GRANTOR
      TRUST AGREEMENT, dated as of August 31, 2007, by and between STRUCTURED ASSET
      MORTGAGE INVESTMENTS II INC., as depositor (the “Depositor”), and Wells
      Fargo Bank, N.A., as grantor trust trustee (the “Grantor Trust
      Trustee”).

     

    PRELIMINARY
      STATEMENT

     

    The
      Depositor intends to cause the issuance of and to sell its Grantor Trust
      Certificates, Series 2007-R6, Class I-A-1, Class I-A-2, Class II-A-1 and Class
      II-A-2 Certificates representing in the aggregate the entire beneficial
      ownership of a trust fund, the primary asset of which is the Underlying
      Securities (as defined herein).

     

    All
      things necessary to make this Agreement a valid declaration of trust by the
      Depositor in accordance with its terms have been done.

     

    In
      consideration of the premises and the mutual agreements herein contained, the
      Depositor and the Grantor Trust Trustee agree as follows:

     

    ARTICLE
      I

     

    DEFINITIONS

     

    Section
      1.01.  Defined
      Terms.

     

    Whenever
      used in this Agreement, including the Preliminary Statement, the following
      words
      and phrases, unless the context otherwise requires, shall have the following
      meanings:

     

    Affiliate:  With
      respect to any specified Person, any other Person that directly, or indirectly
      through one or more intermediaries, controls or is controlled by, or is under
      common control with, such specified Person.  For the purposes of this
      definition, “control” when used with respect to any specified Person means
      possession, direct or indirect, of the power to direct or cause the direction
      of
      the management and policies of such Person, whether through the ownership of
      voting securities, by contract or otherwise, and the terms “controlling,”
“controlled by” and “under common control with” have meanings correlative to the
      foregoing.

     

    Agreement:  This
      Grantor Trust Agreement and all amendments hereof and supplements
      hereto.

     

    Available
      Funds:  Any of the Group I Available Funds and the Group II
      Available Funds.

     

    Bear,
      Stearns:  Bear, Stearns & Co. Inc.

     

    Bear
      Stearns ALT-A Trust 2005-8 Class II-1A-1 Certificates:  Structured
      Asset Mortgage Investments II Inc., Bear Stearns ALT-A Trust, Mortgage
      Pass-Through Certificates, Series 2005-8, Class II-1A-1
      Certificates.

     

    Bear
      Stearns ALT-A Trust 2005-9 Class II-3A-1 Certificates:  Structured
      Asset Mortgage Investments II Inc., Bear Stearns ALT-A Trust, Mortgage
      Pass-Through Certificates, Series 2005-9, Class II-3A-1
      Certificates.

     

    Bear
      Stearns ALT-A Trust 2005-10 Class II-5A-1
      Certificates:  Structured Asset Mortgage Investments II Inc., Bear
      Stearns ALT-A Trust, Mortgage Pass-Through Certificates, Series 2005-10, Class
      II-5A-1 Certificates.

     

    Bear
      Stearns ALT-A Trust 2006-3 Class II-3A-1 Certificates:  Structured
      Asset Mortgage Investments II Inc., Bear Stearns ALT-A Trust 2006-3, Mortgage
      Pass-Through Certificates, Series 2006-3, Class II-3A-1
      Certificates.

     

    Bear
      Stearns ALT-A Trust 2007-2 Class II-A-1 Certificates:  Structured
      Asset Mortgage Investments II Inc., Bear Stearns ALT-A Trust, Mortgage
      Pass-Through Certificates, Series 2007-2, Class II-A-1
      Certificates.

     

    Bear
      Stearns ARM Trust 2007-2 Class II-A-1 Notes:  Structured Asset
      Mortgage Investments II Inc., Bear Stearns ARM Trust 2007-2, Mortgage-Backed
      Notes, Series 2007-2, Class II-A-1 Notes.

     

    Business
      Day:  Any day other than (i) a Saturday or a Sunday, or (ii) a day
      on which banking institutions in the cities of New York, New York, Columbia,
      Maryland, Minneapolis, Minnesota or any city in which the Corporate Trust Office
      of the Grantor Trust Trustee is located are authorized or obligated by law
      or
      executive order to be closed.

     

    Certificate
      Account:  The trust account or accounts, which shall at all times
      be Eligible Accounts, created and maintained by the Grantor Trust Trustee for
      the benefit of the Grantor Trust Certificateholders pursuant to Section
      3.03.  Funds deposited in the Certificate Account shall be held in
      trust for the Grantor Trust Certificateholders for the uses and purposes set
      forth in Article III hereof.

     

    Certificate
      Register:  Shall have the meaning provided in Section
      4.02.

     

    Class:  Collectively,
      all of the Grantor Trust Certificates bearing the same designation.

     

    Class
      I-A-1 Grantor Trust Certificate:  Any Class I-A-1 Grantor Trust
      Certificate as executed hereunder by the Grantor Trust Trustee and authenticated
      and delivered hereunder by the Trustee, substantially in the form of Exhibit
      A
      hereto.

     

    Class
      I-A-2 Grantor Trust Certificate:  Any Class I-A-2 Grantor Trust
      Certificate as executed hereunder by the Grantor Trust Trustee and authenticated
      and delivered hereunder by the Trustee, substantially in the form of Exhibit
      A
      hereto.

     

    Class
      II-A-1 Grantor Trust Certificate:  Any Class II-A-1 Grantor Trust
      Certificate as executed hereunder by the Grantor Trust Trustee and authenticated
      and delivered hereunder by the Trustee, substantially in the form of Exhibit
      A
      hereto.

     

    Class
      II-A-2 Grantor Trust Certificate:  Any Class II-A-2 Grantor Trust
      Certificate as executed hereunder by the Grantor Trust Trustee and authenticated
      and delivered hereunder by the Trustee, substantially in the form of Exhibit
      A
      hereto.

     

    Closing
      Date: August 31, 2007.

     

    Code:  The
      Internal Revenue Code of 1986, as amended.

     

    Commission:  U.S.
      Securities and Exchange Commission.

     

    Corporate
      Trust Office:  The corporate trust office of the Grantor Trust
      Trustee at which at any particular time its corporate trust business with
      respect to this Agreement shall be administered, which office at the date of
      the
      execution of this Agreement, for purposes other than presentment and surrender
      of the Grantor Trust Certificates, is located at Wells Fargo Bank, N.A., P.O.
      Box 98, Columbia, Maryland 21046 (or, for overnight deliveries, 9062 Old
      Annapolis Road, Columbia, Maryland 21045), Attention: Client Manager – BSSP
      2007-R6, and for purposes of presentment and surrender of the Grantor Trust
      Certificates for registration of transfer, exchange or final payment, is located
      at Wells Fargo Bank, N.A., Sixth Street and Marquette Avenue, Minneapolis,
      Minnesota 55479, Attention: Corporate Trust Office – BSSP 2007-R6, or any other
      address that the Grantor Trust Trustee may designate from time to time by notice
      to the Grantor Trust Certificateholders

     

    Current
      Principal Amount:  With respect to any Grantor Trust Certificate,
      as of any date of determination, the original principal amount of such Grantor
      Trust Certificate minus (i) the aggregate of all distributions of principal
      previously made on that Grantor Trust Certificate pursuant to Section 3.05
      and
      (ii) the principal portion of all Realized Losses previously allocated to such
      Grantor Trust Certificate pursuant to Section 3.05.

     

    Cut-off
      Date:  August 31, 2007.

     

    Definitive
      Certificates:  The meaning specified in Section 4.01(b)
      hereof.

     

    Depositor:  Structured
      Asset Mortgage Investments II Inc., a Delaware corporation, or its successor
      in
      interest.

     

    Depository:  DTC,
      the nominee of which is Cede & Co., or any successor thereto.

     

    Depository
      Agreement:  The meaning specified in Subsection 4.01(a)
      hereof.

     

    Depository
      Participant:  A broker, dealer, bank or other financial
      institution or other Person for whom from time to time the Depository effects
      book-entry transfers and pledges of securities deposited with the
      Depository.

     

    Distribution
      Date:  The Business Day immediately following each Underlying
      Securities Distribution Date, commencing in September 2007.

     

    DTC:  The
      Depository Trust Company.

     

    Eligible
      Account:  Any of (i) an account or accounts maintained with a
      federal or state chartered depository institution or trust company, the
      long-term unsecured debt obligations and short-term unsecured debt obligations
      of which (or, in the case of a depository institution or trust company that
      is
      the principal subsidiary of a holding company, the debt obligations of such
      holding company, so long as Moody’s is not a Rating Agency) are rated by each
      Rating Agency in one of its two highest long-term and its highest short-term
      rating categories, respectively, at the time any amounts are held on deposit
      therein; provided, that following a downgrade, withdrawal, or suspension of
      such
      institution’s rating as set forth above, each account shall promptly (and in any
      case within not more than 30 calendar days) be moved to one or more segregated
      trust accounts in the trust department of such institution, or to an account
      at
      another institution that complies with the above requirements, or (ii) a trust
      account or accounts maintained with the corporate trust department of a federal
      or state chartered depository institution or trust company having capital and
      surplus of not less than $50,000,000, acting in its fiduciary capacity or (iii)
      any other account acceptable to the Rating Agencies, as evidenced in writing.
      Eligible Accounts may bear interest, and may include, if otherwise qualified
      under this definition, accounts maintained with the Grantor Trust Trustee.
      Notwithstanding Section 8.01, this Agreement may be amended to reduce the rating
      requirements in clause (i) above, without the consent of any of the Grantor
      Trust Certificateholders, provided that the Person requesting such amendment
      obtains a letter from each Rating Agency stating that such amendment would
      not
      result in the downgrading or withdrawal of the respective ratings then assigned
      to the Grantor Trust Certificates.

     

    ERISA:  The
      Employee Retirement Income Security Act of 1974, as amended, and the rules
      and
      regulations promulgated thereunder.

     

    Exchange
      Act:  The Securities Exchange Act of 1934, as
      amended.

     

    FDIC:
      Federal Deposit Insurance Corporation or any successor thereto.

     

    Final
      Distribution Date:  With respect to each Underlying Security, the
      Underlying Security Distribution Date on which the final distribution thereon
      is
      to be made in accordance with the related Underlying Agreement; and with respect
      to the Grantor Trust Certificates, the  Distribution Date on which the
      final distribution thereon is to be made in accordance with this
      Agreement.

     

    Grantor
      Trust Certificate:  Any of the Group I Grantor Trust Certificates
      and Group II Grantor Trust Certificates.

     

    Grantor
      Trust Certificate Owner:  Any Person who is the beneficial owner
      of a Grantor Trust Certificate registered in the name of the Depository or
      its
      nominee.

     

    Grantor
      Trust Certificateholder or Holder:  The person in whose name a
      Grantor Trust Certificate is registered in the Certificate Register, except
      that, subject to Sections 8.01(b) and 8.10(e), solely for the purpose of giving
      any consent, approval or waiver pursuant to this Agreement, any Grantor Trust
      Certificate registered in the name of the Depositor or any Affiliate thereof
      shall be deemed not to be outstanding and shall not be taken into account for
      purposes of determining whether the Holders of Grantor Trust Certificates
      evidencing the requisite aggregate Percentage Interest necessary to effect
      any
      such consent, approval or waiver has been obtained, unless such Persons
      collectively own all the Grantor Trust Certificates.

     

    Grantor
      Trust Trustee: Wells Fargo Bank, N.A., in its capacity as grantor trust
      trustee, or its successor in interest.

     

    Group
      I Available Funds:  As of any date of determination, the aggregate
      amount on deposit in the Certificate Account as of such date received with
      respect to the Group I Underlying Securities, net of any portion thereof which
      represents amounts to be paid to any Person pursuant to clauses (ii) and (iv)
      of
      Section 3.04.

     

    Group
      I Grantor Trust Certificates: Any of the Class I-A-1 Grantor Trust
      Certificates and Class I-A-2 Grantor Trust Certificates.

     

    Group
      I Sub-Trust: The segregated pool of assets subject hereto and constituting a
      portion of the Trust Fund, consisting of (i) the Group I Underlying Securities,
      (ii) all amounts payable on the Group I Underlying Securities following the
      Closing Date pursuant to the related Underlying Agreements, (iii) the portion
      of
      the Certificate Account and such funds or assets as are from time to time
      deposited in the Certificate Account related to the Group I Underlying
      Securities, (iv) the Depositor’s rights under the Purchase Agreement related to
      the Group I Underlying Securities and (v) the income, payments and proceeds
      of
      each of the foregoing.

     

    Group
      I Underlying Securities: The respective Underlying Security Class Percentage
      of the Bear Stearns ALT-A Trust 2005-8 Class II-1A-1 Certificates, the Bear
      Stearns ALT-A Trust 2005-9 Class II-3A-1 Certificates and the Bear Stearns
      ALT-A
      Trust 2005-10 Class II-5A-1 Certificates, sold by the Depositor to, and
      registered in the name of, the Grantor Trust Trustee, or held by the Grantor
      Trust Trustee for the benefit of the Holders of the Group I Grantor Trust
      Certificates, pursuant to Section 2.01 and as more particularly described in
      Schedule A hereto.

     

    Group
      II Available Funds:  As of any date of determination, the
      aggregate amount on deposit in the Certificate Account as of such date received
      with respect to the Group II Underlying Securities, net of any portion thereof
      which represents amounts to be paid to any Person pursuant to clauses (ii)
      and
      (iv) of Section 3.04.

     

    Group
      II Grantor Trust Certificates: Any of the Class II-A-1 Grantor Trust
      Certificates and Class II-A-2 Grantor Trust Certificates.

     

    Group
      II Sub-Trust: The segregated pool of assets subject hereto and constituting
      a portion of the Trust Fund, consisting of (i) the Group II Underlying
      Securities, (ii) all amounts payable on the Group II Underlying Securities
      following the Closing Date pursuant to the related Underlying Agreements, (iii)
      the portion of the Certificate Account and such funds or assets as are from
      time
      to time deposited in the Certificate Account with respect to the Group II
      Underlying Securities, (iv) the Depositor’s rights under the Purchase Agreement
      with respect to the Group II Underlying Securities and (v) the income, payments
      and proceeds of each of the foregoing.

     

    Group
      II Underlying Securities: The respective Underlying Security Class
      Percentage of the Bear Stearns ALT-A Trust 2006-3 Class II-3A-1 Certificates,
      the Bear Stearns ALT-A Trust 2007-2 Class II-A-1 Certificates and the Bear
      Stearns ARM Trust 2007-2 Class II-A-1 Notes, sold by the Depositor to, and
      registered in the name of, the Grantor Trust Trustee, or held by the Grantor
      Trust Trustee for the benefit of the Holders of the Group II Grantor Trust
      Certificates, pursuant to Section 2.01 and as more particularly described in
      Schedule A hereto.

     

    Interest
      Accrual Period:  For each Distribution Date, the one-month period
      ending on the last day of the month preceding the month in which such
      Distribution Date occurs. The initial Interest Accrual Period will be deemed
      to
      have commenced on the Cut-off Date.

     

    Interest
      Distribution Amount:  With respect to the Grantor Trust
      Certificates and any Distribution Date, the amount of interest accrued during
      the related Interest Accrual Period at the related Pass-Through Rate on the
      Current Principal Amount of the related Grantor Trust Certificates immediately
      prior to such Distribution Date.

     

    Investment
      Company Act:  The Investment Company Act of 1940, as amended from
      time to time, and the rules and regulations promulgated thereunder.

     

    Latest
      Possible Final Distribution Date: With respect to the Group I Grantor Trust
      Certificates, the Distribution Date occurring in January 2036. With respect
      to
      the Group II Grantor Trust Certificates, the Distribution Date occurring in
      December 2046.

     

    Majority
      Grantor Trust Certificateholders:  With respect to the Group I
      Grantor Trust Certificates or the Group II Grantor Trust Certificates, the
      Holders of the related Grantor Trust Certificates evidencing in the aggregate
      greater than 50% of the aggregate Current Principal Amount of all the related
      Grantor Trust Certificates.

     

    Moody’s:
      Moody’s Investors Service, Inc.

     

    NMWHFIT:
      shall mean a “Non-Mortgage Widely Held Fixed Investment Trust” as that term is
      defined in Treasury Regulations section 1.671-5(b)(12) or successor
      provisions.

     

    Notice
      of Final Distribution:  With respect to each Underlying Security,
      any notice provided pursuant to the related Underlying Agreement to the effect
      that final distribution on such Underlying Security shall be made only upon
      presentment and surrender thereof.  With respect to the Grantor Trust
      Certificates, the notice to be provided pursuant to Sections 7.01(b) or 7.01(d)
      to the effect that final distribution on the Grantor Trust Certificates shall
      be
      made only upon presentment and surrender thereof.

     

    Officer’s
      Certificate:  A certificate signed by the Chairman of the Board,
      the Vice Chairman of the Board, the President or a Vice President or Assistant
      Vice President or other authorized officer of the Depositor and delivered to
      the
      Grantor Trust Trustee, as required by this Agreement.

     

    Opinion
      of Counsel:  A written opinion of counsel, who may be counsel for
      the Depositor, which opinion is addressed to the Grantor Trust Trustee and
      is
      reasonably acceptable to the Grantor Trust Trustee.

     

    Pass-Through
      Rate:  With respect to any Distribution Date and the Group I
      Grantor Trust Certificates, a per annum pass-through rate equal to the weighted
      average pass-through rate of the Group I Underlying Securities, as reported
      in
      the related Underlying Distribution Date Statement for the related Underlying
      Security Distribution Date. With respect to any Distribution Date and the Group
      II Grantor Trust Certificates, a per annum pass-through rate equal to the
      weighted average of the pass-through rates of the Bear Stearns ALT-A Trust
      2006-3 Class II-3A-1 Certificates and the Bear Stearns ALT-A Trust 2007-2 Class
      II-A-1 Certificates and the note interest rate of the Bear Stearns ARM Trust
      2007-2 Class II-A-1 Notes, as reported in the related Underlying Distribution
      Date Statement for the related Underlying Security Distribution
      Date.

     

    Percentage
      Interest:  With respect to any Class of Grantor Trust
      Certificates, the portion of the Grantor Trust Certificates represented by
      such
      Grantor Trust Certificate, expressed as a percentage, the numerator of which
      is
      the initial outstanding Current Principal Amount of such Class of Grantor Trust
      Certificates as of the Closing Date, as specified on the face thereof, and
      the
      denominator of which is the Original Current Principal Amount of all Grantor
      Trust Certificates in such Class.

     

    Permitted
      Investments: Any one or more of the following obligations
      or  securities held in the name of the Grantor Trust Trustee for the
      benefit of the related Grantor Trust Certificateholders:

     

    
      	
              (i)          
                 

            	
              obligations
                of the United States or any agency thereof, provided such obligations
                are
                backed by the full faith and credit of the United
                States;

            

    

     

    
      	
              (ii)            
                

            	
              general
                obligations of or obligations guaranteed by any state of the United
                States
                or the District of Columbia receiving the highest long-term debt
                rating of
                each Rating Agency, or such lower rating as will not result in the
                downgrading or withdrawal of the ratings then assigned to the Notes
                by
                each Rating Agency, as evidenced in
                writing;

            

    

     

    
      	
              (iii)           

            	
              commercial
                or finance company paper which is then receiving the highest commercial
                or
                finance company paper rating of each Rating Agency, or such lower
                rating
                as will not result in the downgrading or withdrawal of the ratings
                then
                assigned to the Notes by each Rating Agency, as evidenced in
                writing;

            

    

     

    
      	
              (iv)          

            	
              certificates
                of deposit, demand or time deposits, or bankers’ acceptances issued by any
                depository institution or trust company incorporated under the laws
                of the
                United States or of any state thereof and subject to supervision
                and
                examination by federal and/or state banking authorities (including
                the
                Grantor Trust Trustee in its commercial banking capacity), provided
                that
                the commercial paper and/or long term unsecured debt obligations
                of such
                depository institution or trust company are then rated one of the
                two
                highest long-term and the highest short-term ratings of each such
                Rating
                Agency for such securities, or such lower ratings as will not result
                in
                the downgrading or withdrawal of the rating then assigned to the
                Notes by
                any Rating Agency, as evidenced in
                writing;

            

    

     

    
      	
              (v)           

            	
              guaranteed
                reinvestment agreements issued by any bank, insurance company or
                other
                corporation containing, at the time of the issuance of such agreements,
                such terms and conditions as will not result in the downgrading or
                withdrawal of the rating then assigned to the Notes by each Rating
                Agency,
                as evidenced in writing;

            

    

     

    
      	
              (vi)           

            	
              repurchase
                obligations with respect to any security described in clauses (i)
                and (ii)
                above, in either case entered into with a depository institution
                or trust
                company (acting as principal) described in clause (v)
                above;

            

    

     

    
      	
              (vii)           

            	
              securities
                (other than stripped bonds, stripped coupons or instruments sold
                at a
                purchase price in excess of 115% of the face amount thereof) bearing
                interest or sold at a discount issued by any corporation incorporated
                under the laws of the United States or any state thereof which, at
                the
                time of such investment, have one of the two highest short term ratings
                of
                each Rating Agency (except if the Rating Agency is Moody’s, such rating
                shall be the highest commercial paper rating of Moody’s for any such
                securities), or such lower rating as will not result in the downgrading
                or
                withdrawal of the rating then assigned to the Notes by each Rating
                Agency,
                as evidenced by a signed writing delivered by each Rating
                Agency;

            

    

     

    
      	
              (viii)           

            	
              interests
                in any money market fund (including any such fund managed or advised
                by
                the Grantor Trust Trustee or any affiliate thereof) which at the
                date of
                acquisition of the interests in such fund and throughout the time
                such
                interests are held in such fund has the highest applicable short
                term
                rating by each Rating Agency rating such fund or such lower rating
                as will
                not result in the downgrading or withdrawal of the ratings then assigned
                to the Notes by each Rating Agency, as evidenced in
                writing;

            

    

     

    
      	
              (ix)           

            	
              short
                term investment funds sponsored by any trust company or banking
                association incorporated under the laws of the United States or any
                state
                thereof (including any such fund managed or advised by the Grantor
                Trust
                Trustee or any affiliate thereof) which on the date of acquisition
                has
                been rated by each Rating Agency in their respective highest applicable
                rating category or such lower rating as will not result in the downgrading
                or withdrawal of the ratings then assigned to the Notes by each Rating
                Agency, as evidenced in writing;
                and

            

    

     

    
      	
              (x)           

            	
              such
                other investments having a specified stated maturity and bearing
                interest
                or sold at a discount acceptable to each Rating Agency and as will
                not
                result in the downgrading or withdrawal of the rating then assigned
                to the
                Notes by any Rating Agency, as evidenced by a signed writing delivered
                by
                each Rating Agency;

            

    

     

    provided,
      that no such instrument shall be a Permitted Investment if such instrument
      (i)
      evidences the right to receive interest only payments with respect to the
      obligations underlying such instrument, (ii) is purchased at a premium or (iii)
      is purchased at a deep discount; provided further that no such instrument shall
      be a Permitted Investment (A) if such instrument evidences principal and
      interest payments derived from obligations underlying such instrument and the
      interest payments with respect to such instrument provide a yield to maturity
      of
      greater than 120% of the yield to maturity at par of such underlying
      obligations, or (B) if it may be redeemed at a price below the purchase price
      (the foregoing clause (B) not to apply to investments in units of money market
      funds pursuant to clause (viii) above); provided further that no amount
      beneficially owned by any REMIC may be invested in investments (other than
      money
      market funds) treated as equity interests for federal income tax purposes,
      unless the Grantor Trust Trustee shall receive an Opinion of Counsel, at the
      expense of the Grantor Trust Trustee, to the effect that such investment will
      not adversely affect the status of any such REMIC as a REMIC under the Code
      or
      result in imposition of a tax on any such REMIC.  Permitted
      Investments that are subject to prepayment or call may not be purchased at
      a
      price in excess of par.

     

    Person:  Any
      individual, corporation, partnership, limited liability company, joint venture,
      association, joint-stock company, trust, unincorporated organization or
      government or any agency or political subdivision thereof.

     

    Purchase
      Agreement:  The Purchase Agreement, dated as of August 31, 2007,
      between EMC Mortgage Corporation and the Depositor relating to the Underlying
      Securities.

     

    Rating
      Agency:  S&P or Moody’s or their respective
      successors.  If such agency or its successors are no longer in
      existence, “Rating Agency” shall be deemed to refer to such nationally
      recognized statistical rating agency, or other comparable Person, designated
      by
      the Depositor, notice of which designation shall be given to the Grantor Trust
      Trustee, and specific ratings of the Rating Agency shall be deemed to refer
      to
      the equivalent ratings of the party so designated.

     

    Record
      Date:  For the Grantor Trust Certificates and the first
      Distribution Date, the Closing Date, and for any Distribution Date thereafter,
      the last Business Day of the month preceding the month in which such
      Distribution Date occurs.

     

    Regulation
      AB:  Subpart 229.1100 – Asset Backed Securities (Regulation AB),
      17 C.F.R. §§229.1100-229.1123, as amended from time to time, and subject to such
      clarification and interpretation as have been provided by the Commission in
      the
      adopting release (Asset-Backed Securities, Securities Act Release No. 33-8518,
      70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the Commission,
      or
      as may be provided by the Commission or its staff from time to
      time.

     

    Repurchase
      Price:  In connection with the repurchase of any of the Underlying
      Securities pursuant to Section 2.03(c), a price equal to the outstanding
      principal balance thereof as of the date of repurchase plus accrued interest
      thereon.

     

    Responsible
      Officer:  When used with respect to the Grantor Trust Trustee, any
      officer of the Grantor Trust Trustee assigned to and working in its Corporate
      Trust Office or similar group administering the Trusts hereunder and also,
      with
      respect to a particular matter, any other officer of the Grantor Trust Trustee
      to whom a particular matter is referred by the Grantor Trust Trustee because
      of
      such officer’s knowledge of and familiarity with the particular
      subject.

     

    S&P:
      Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and its
      successors in interest.

     

    Securities
      Act:  The Securities Act of 1933, as amended.

     

    Servicing
      Criteria:  The “servicing criteria” set forth in Item 1122(d) of
      Regulation AB, as such may be amended from time to time, or those Servicing
      Criteria otherwise mutually agreed to by the Sponsor, the Grantor Trust Trustee
      and the Depositor in response to evolving interpretations of Regulation AB
      and
      incorporated into a revised Exhibit C.

     

    Sponsor:  EMC
      Mortgage Corporation, or its successor in interest.

     

    Sub-Trust:
      Either of the Group I Sub-Trust and Group II Sub-Trust.

     

    Trust:
      Bear Stearns Structured Products Inc. Trust 2007-R6, created pursuant to this
      Agreement and comprised of the Trust Fund.

     

    Trust
      Fund:  The segregated pool of assets subject hereto, constituting
      the corpus of the Trust created hereby and to be administered hereunder,
      consisting of the Group I Sub-Trust and the Group II Sub-Trust.

     

    Underlying
      Agreement:  Any of the agreements pursuant to which any the
      Underlying Securities were issued, as in effect on the Closing
      Date.

    

    Underlying
      Distribution Date Statement:  The monthly investor reports
      provided or made available pursuant to each Underlying Agreement in respect
      of
      the related Underlying Security in connection with the related Underlying
      Security Distribution Date.

     

    Underlying
      Securities:  Any of the Group I Underlying Securities and Group II
      Underlying Securities.

     

    Underlying
      Security Class Percentage:  The percentage which each Underlying
      Security constitutes of its entire class as set forth in Schedule A attached
      hereto under the caption “Class % in Trust.”

     

    Underlying
      Security Distribution Date:  The 25th day of each month, or if
      such day is not a Business Day, then the next Business Day commencing in
      September 2007.

     

    Underlying
      Securityholder:  The Grantor Trust Trustee or its Depository
      Participant for the benefit of the related Grantor Trust
      Certificateholders.

     

    Underlying
      Series:  The series of securities which includes the related
      Underlying Securities.

     

    Underlying
      2007 Series: The series of securities which includes any of the Bear Stearns
      ALT-A Trust 2007-2 Class II-A-1 Certificates and the Bear Stearns ARM Trust
      2007-2 Class II-A-1 Notes.

     

    WHFIT:
      shall mean a “Widely Held Fixed Investment Trust” as that term is defined in
      Treasury Regulations section 1.671-5(b)(22) or successor
      provisions.

     

    WHFIT
      Regulations: shall mean Treasury Regulations section 1.671-5, as
      amended.

     

    ARTICLE
      II

    
CONVEYANCE
      OF THE UNDERLYING SECURITIES; ORIGINAL ISSUANCE OF GRANTOR TRUST CERTIFICATES
      

     

    Section
      2.01.  Conveyance
      of the Underlying Securities.

     

    (a)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      sell, transfer, assign, set-over and otherwise convey to the Grantor Trust
      Trustee, in trust, for the use and benefit of the related Grantor Trust
      Certificateholders, without recourse, all the right, title and interest of
      the
      Depositor in and to (i) the related Underlying Securities, (ii) the Purchase
      Agreement and (iii) all other assets constituting the related
      Sub-Trust.  Such assignment includes, without limitation, all amounts
      payable on the related Underlying Securities pursuant to the related Underlying
      Agreement following the Closing Date.

     

    (b)  In
      connection with such transfer and assignment, and concurrently with its
      execution and delivery of this Agreement, the Depositor shall have caused the
      Underlying Securities to be registered in the book-entry records of the
      Depository in the name of the Grantor Trust Trustee or its nominee.

     

    (c)  The
      transfer of the Underlying Securities and all other assets constituting the
      Trust Fund is absolute and is intended by the parties hereto as a
      sale.

     

    (d)  It
      is
      intended that the conveyances by the Depositor to the Grantor Trust Trustee
      of
      the Underlying Securities as provided for in this Section 2.01 be construed
      as a
      sale by the Depositor to the Grantor Trust Trustee of the Underlying Securities
      for the benefit of the related Grantor Trust
      Certificateholders.  Further, it is not intended that any such
      conveyance be deemed to be a pledge of the Underlying Securities by the
      Depositor to the Grantor Trust Trustee to secure a debt or other obligation
      of
      the Depositor.  However, in the event that the Underlying Securities
      are held to be property of the Depositor, or if for any reason this Agreement
      is
      held or deemed to create a security interest in the Underlying Securities,
      then
      it is intended that (a) this Agreement shall also be deemed to be a security
      agreement within the meaning of Articles 8 and 9 of the New York Uniform
      Commercial Code and the Uniform Commercial Code of any other applicable
      jurisdiction; (b) the conveyance provided for in Section 2.01 shall be deemed
      to
      be a grant by the Depositor to the Grantor Trust Trustee of a security interest
      in all of the Depositor’s right (including the power to convey title thereto),
      title and interest, whether now owned or hereafter acquired, in and to (1)
      the
      Underlying Securities, (2) all amounts payable on the Underlying Securities
      in
      accordance with the terms thereof and (3) any and all general intangibles
      consisting of, arising from or relating to any of the foregoing, and all
      proceeds of the conversion, voluntary or involuntary, of the foregoing into
      cash, instruments, securities or other property, including without limitation
      all amounts from time to time held in the Certificate Account, whether in the
      form of cash, instruments, securities or other property; (c) the possession
      by
      the Grantor Trust Trustee or any agent of the Grantor Trust Trustee of such
      items of property as constitute instruments, money, negotiable documents or
      chattel paper shall be deemed to be “possession by the secured party,” or
      possession by a purchaser or a person designated by such secured party, for
      purposes of perfecting the security interest pursuant to the New York Uniform
      Commercial Code and the Uniform Commercial Code of any other applicable
      jurisdiction; and (d) notifications to persons holding such property, and
      acknowledgments, receipts or confirmations from persons holding such property,
      shall be deemed notifications to, or acknowledgments, receipts or confirmations
      from, financial intermediaries, bailees or agents (as applicable) of the Grantor
      Trust Trustee for the purpose of perfecting such security interest under
      applicable law.  It is also intended that the Trust be classified for
      federal income tax purposes as a grantor trust under Subpart E, part I of
      subchapter J of chapter 1 of the Code, of which the Grantor Trust
      Certificateholders are owners, rather than a partnership, an association taxable
      as a corporation or a taxable mortgage pool.  The powers granted and
      obligations undertaken in this Agreement shall be construed so as to further
      such intent.

     

    The
      Depositor and the Grantor Trust Trustee, at the Depositor’s or the related
      Majority Grantor Trust Certificateholders’ direction, shall, to the extent
      consistent with this Agreement, take such reasonable actions as may be
      determined to be necessary to ensure that, if this Agreement were deemed to
      create a security interest in the related Underlying Securities, and the other
      property described above, such security interest would be deemed to be a
      perfected security interest of first priority under applicable law and will
      be
      maintained as such throughout the term of this Agreement.

     

    Section
      2.02.  Acceptance
      of Trust Fund by Grantor Trust Trustee; Initial Issuance of Grantor Trust
      Certificates.

     

    The
      Grantor Trust Trustee acknowledges receipt of the Underlying Agreements and
      the
      receipt by it and the transfer, delivery and assignment to it of the Underlying
      Securities, in good faith and without notice of any adverse claim, and the
      assignment to it of all other assets included in the Trust Fund and declares
      that it holds and will hold the Underlying Securities and all other assets
      included in the Trust Fund in trust for the exclusive use and benefit of all
      present and future related Grantor Trust Certificateholders in accordance with
      the terms of this Agreement.  Concurrently with such transfer,
      delivery and assignment and in exchange therefor, pursuant to the written
      request of the Depositor executed by an officer of the Depositor, the Grantor
      Trust Trustee has executed and caused to be authenticated and delivered to
      or
      upon the order of the Depositor, the Grantor Trust Certificates in authorized
      denominations evidencing the entire beneficial ownership of the Trust
      Fund.

     

    Until
      the
      related Sub-Trust is terminated in accordance with Section 7.01, except as
      provided herein, the Grantor Trust Trustee shall not assign, sell, dispose
      of or
      transfer any interest in the related Underlying Securities or any other asset
      constituting the related Sub-Trust or permit the related Underlying Securities
      or any other asset constituting the related Sub-Trust to be subjected to any
      lien, claim or encumbrance arising by, through or under the Grantor Trust
      Trustee or any person claiming by, through or under the Grantor Trust
      Trustee.

     

    Section
      2.03.  Representations
      and Warranties of the Depositor and the Grantor Trust Trustee.

     

    (a)  The
      Depositor hereby represents and warrants to the Grantor Trust Trustee, and
      for
      the benefit of the Grantor Trust Certificateholders, as of the Closing Date,
      that:

     

    (i)  The
      Depositor is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware, and the Depositor is possessed of
      all
      licenses necessary to carry on its business.

     

    (ii)  The
      execution and delivery of this Agreement by the Depositor, and the performance
      and compliance with the terms of this Agreement by the Depositor, will not
      violate the Depositor’s certificate of incorporation or bylaws or constitute a
      default (or an event which, with notice or lapse of time, or both, would
      constitute a default) under, or result in the breach of, any material agreement
      or other instrument to which it is a party or which is applicable to it or
      any
      of its assets.

     

    (iii)  The
      Depositor has the full right, power and authority to enter into and consummate
      all transactions contemplated by this Agreement, including but not limited
      to
      selling the Underlying Securities to the Grantor Trust Trustee, has duly
      authorized the execution, delivery and performance of this Agreement, and has
      duly executed and delivered this Agreement.

     

    (iv)  This
      Agreement, assuming due authorization, execution and delivery by the Grantor
      Trust Trustee, constitutes a valid, legal and binding obligation of the
      Depositor, enforceable against the Depositor in accordance with the terms
      hereof, subject to (A) applicable bankruptcy, insolvency, reorganization,
      moratorium and other laws affecting the enforcement of creditors’ rights
      generally, and (B) general principles of equity, regardless of whether such
      enforcement is considered in a proceeding in equity or at law.

     

    (v)  The
      Depositor is not in violation of, and its execution and delivery of this
      Agreement and its performance and compliance with the terms of this Agreement
      will not constitute a violation of, any law, any order or decree of any court
      or
      arbiter, or any order, regulation or demand of any federal, state or local
      governmental or regulatory authority, which violation is likely to affect
      materially and adversely either the ability of the Depositor to perform its
      obligations under this Agreement or the financial condition of the
      Depositor.

     

    (vi)  No
      litigation is pending or, to the best of the Depositor’s knowledge, threatened
      against the Depositor which, if determined adversely to the Depositor, would
      prohibit the Depositor from entering into this Agreement or is likely to
      materially and adversely affect either the ability of the Depositor to perform
      its obligations under this Agreement or the financial condition of the
      Depositor.

     

    (vii)  The
      Depositor was, immediately prior to the transfer of the Underlying Securities
      to
      the Grantor Trust Trustee, the sole owner thereof free and clear of any lien,
      pledge, charge or encumbrance of any kind (except any lien created by this
      Agreement).

     

    (viii)  The
      Depositor acquired the Underlying Securities in good faith without notice of
      any
      adverse claim, lien, charge, encumbrance or security interest (including without
      limitation, federal tax liens or liens arising under ERISA).

     

    (ix)  The
      Depositor has not assigned any interest in the Underlying Securities or any
      distributions thereon, except as contemplated herein.

     

    (x)  The
      Grantor Trust Trustee, will be entitled to distributions under the Underlying
      Agreements equal to all distributions of interest and principal made on the
      Underlying Securities.

     

    (xi)  The
      information relating to the Underlying Securities set forth in Schedule A is
      true and correct in all material respects.

     

    (xii)  The
      Underlying Securities are registered on the books of the Depository in the
      name
      of the Grantor Trust Trustee or its financial intermediary on behalf of the
      Grantor Trust Trustee.

     

    (xiii)  The
      Underlying Securities other than the Bear Stearns ARM Trust 2007-2 Class II-A-1
      Notes are “regular interests” in a real estate mortgage investment conduit
      within the meaning of Section 860G(a)(1) of the Code, and the Bear Stearns
      ARM
      Trust 2007-2 Class II-A-1 Notes are indebtedness for federal income tax
      purposes.

     

    (xiv)  The
      Depositor has no actual knowledge after reasonable inquiry that any of the
      Underlying Securities (1) were not validly issued by the related underlying
      trust, (2) are not outstanding, (3) are not the legal, valid, binding and
      enforceable obligation of the related underlying trust, and (4) are not entitled
      to the benefits of the related Underlying Agreement pursuant to which such
      Underlying Security was issued (except as limited by bankruptcy, insolvency
      or
      other similar laws affecting the enforcement of creditors’ rights generally or
      to the extent that such enforceability may be subject to the exercise of
      judicial discretion in accordance with general equitable
      principles).

     

    (xv)           The
      information relating to the Underlying Securities set forth on Schedule A hereto
      conforms to information set forth in the Prospectus dated December 20, 2004
      and
      the Prospectus Supplement dated August 29, 2005 for the Bear Stearns ALT-A
      Trust
      2005-8 Class II-1A-1 Certificates, the Prospectus dated December 20, 2004 and
      the Prospectus Supplement dated September 28, 2005 for the Bear Stearns ALT-A
      Trust 2005-9 Class II-3A-1 Certificates, the Prospectus dated December 20,
      2004
      and the Prospectus Supplement dated December 28, 2005 for the Bear Stearns
      ALT
      -A Trust 2005-10 Class II-5A-1 Certificates, the Prospectus dated March 28,
      2006
      and the Prospectus Supplement dated April 27, 2006 for the Bear Stearns ALT-A
      Trust 2006-3 Class II-3A-1 Certificates, the Prospectus dated March 20, 2007
      and
      the Prospectus Supplement dated March 29, 2007 for the Bear Stearns ALT-A Trust
      2007-2 Class II-A-1 Certificates, and the Prospectus dated June 28, 2007 and
      the
      Prospectus Supplement dated June 28, 2007 for the Bear Stearns ARM Trust 2007-2
      Class II-A-1 Notes.

     

    (b)  The
      Grantor Trust Trustee hereby represents and warrants to the Depositor and for
      the benefit of the Grantor Trust Certificateholders, as of the Closing Date,
      that:

     

    (i)  The
      Grantor Trust Trustee is a national banking association, duly organized and
      validly existing under the laws of the United States of America.

     

    (ii)  The
      execution and delivery of this Agreement by the Grantor Trust Trustee, and
      the
      performance and compliance with the terms of this Agreement by the Grantor
      Trust
      Trustee, will not violate the Grantor Trust Trustee’s charter or bylaws or
      constitute a default (or an event which, with notice or lapse of time, or both,
      would constitute a default) under, or result in the breach of, any material
      agreement or other instrument to which it is a party or which is applicable
      to
      it or any of its assets.

     

    (iii)  The
      Grantor Trust Trustee has the full power and authority to enter into and
      consummate all transactions contemplated by this Agreement, has duly authorized
      the execution, delivery and performance of this Agreement, and has duly executed
      and delivered this Agreement.

     

    (iv)  This
      Agreement, assuming due authorization, execution and delivery by the Depositor,
      constitutes a valid, legal and binding obligation of the Grantor Trust Trustee,
      enforceable against the Grantor Trust Trustee in accordance with the terms
      hereof, subject to (A) applicable bankruptcy, insolvency, reorganization,
      moratorium and other laws affecting the enforcement of creditors’ rights
      generally, and (B) general principles of equity, regardless of whether such
      enforcement is considered in a proceeding in equity or at law.

     

    (v)  The
      Grantor Trust Trustee is not in violation of, and its execution and delivery
      of
      this Agreement and its performance and compliance with the terms of this
      Agreement will not constitute a violation of, any law, any order or decree
      of
      any court or arbiter, or any order, regulation or demand of any federal, state
      or local governmental or regulatory authority, which violation is likely to
      affect materially and adversely the ability of the Grantor Trust Trustee to
      perform its obligations under this Agreement.

     

    (vi)  No
      litigation is pending or, to the best of the Grantor Trust Trustee’s knowledge,
      threatened against the Grantor Trust Trustee which would prohibit the Grantor
      Trust Trustee from entering into this Agreement or is likely to materially
      and
      adversely affect the ability of the Grantor Trust Trustee to perform its
      obligations under this Agreement.

     

    (vii)  The
      Underlying Securities will be held by the Grantor Trust Trustee through the
      Depository or its nominee; it has acquired the Underlying Securities on behalf
      of the related Grantor Trust Certificateholders from the Depositor in good
      faith, for value, and the Grantor Trust Trustee has not received notice of,
      and
      has no actual knowledge of, any adverse claim, lien, charge, encumbrance or
      security interest (including, without limitation, federal tax liens or liens
      arising under ERISA); it has not and will not, in any capacity except as Grantor
      Trust Trustee, on behalf of the related Grantor Trust Certificateholders, assert
      any claim or interest in the related Underlying Securities and will hold the
      related Underlying Securities and the proceeds thereof in trust pursuant to
      the
      terms of this Agreement; and it has not encumbered or transferred its right,
      title or interest in the Underlying Securities.

     

    (c)  It
      is
      understood and agreed that the foregoing representations and warranties shall
      survive the execution and delivery of this Agreement.  Upon discovery
      by either party hereto of a breach of any of the foregoing representations
      and
      warranties which materially and adversely affects the interests of the related
      Grantor Trust Certificateholders or either party hereto, the party discovering
      such breach will give prompt written notice thereof to the other party hereto
      and to the related Grantor Trust Certificateholders.  Within thirty
      (30) days of the earlier of either discovery by or notice to the Depositor
      of
      any breach of a representation or warranty of the Depositor that materially
      and
      adversely affects the interests of the related Grantor Trust Certificateholders,
      the Depositor shall use its best efforts promptly to cure such breach in all
      material respects and, if such breach cannot be cured, the Depositor shall,
      at
      the election of the related Majority Grantor Trust Certificateholders,
      repurchase the related Underlying Security affected by the breach at the
      Repurchase Price.  If the Depositor is to repurchase any Underlying
      Security, the Grantor Trust Trustee shall promptly determine the Repurchase
      Price in accordance with the definition thereof.  Repurchase of any
      Underlying Security pursuant to the foregoing provisions of this Section 2.03(c)
      shall be accomplished by deposit by the Depositor in the Certificate Account
      on
      the Business Day prior to the next succeeding Distribution Date of the amount
      of
      the Repurchase Price.

     

    Section
      2.04.  Grantor
      Trust.  The Trust created hereby is intended to qualify as an
“investment trust” within the meaning of Treasury Regulation §301.7701-4(c), and
      it is neither the purpose nor the intent of the parties hereto to create a
      partnership, joint venture, taxable mortgage pool or association taxable as
      a
      corporation between or among the Grantor Trust Certificateholders, the Grantor
      Trust Trustee or the Depositor.  In furtherance of the foregoing, the
      purpose of the Trust shall be to protect and conserve the assets of the Trust,
      and the Trust shall not at any time engage in or carry on any kind of business
      or any kind of commercial or investment activity.  Subject to the
      foregoing, the Trust shall:

     

    (i)  issue
      the
      Grantor Trust Certificates to, or at the written direction of, the Depositor
      in
      exchange for the Underlying Securities;

     

    (ii)  perform
      the activities of the Trust that are expressly set forth in this
      Agreement;

     

    (iii)  engage
      in
      those activities that are reasonably necessary, suitable or convenient to
      accomplish the foregoing or are incidental thereto or connected therewith;
      and

     

    (iv)  subject
      to compliance with this Agreement, engage in such other activities as may be
      required in connection with conservation of the Trust and the making of
      distributions to the Grantor Trust Certificateholders.

     

    The
      Trust
      is hereby authorized to engage in the foregoing activities. The Trust shall
      not
      engage in any activity other than the foregoing or other than as required or
      authorized by the terms of this Agreement while any Grantor Trust Certificate
      is
      outstanding without the consent of all of the Grantor Trust Certificateholders;
      provided, however, that in no event shall the Grantor Trust Trustee or any
      other
      Person have any duty, responsibility or power to vary the investment of the
      Grantor Trust Certificateholders in the Grantor Trust Certificates or to
      substitute new investments or reinvest so as to enable the Trust to take
      advantage of variations in the market to improve the investment of the Grantor
      Trust Certificateholders in the Grantor Trust Certificates.

     

    ARTICLE
      III

     

    ADMINISTRATION
      OF THE UNDERLYING SECURITIES;

    PAYMENTS
      AND REPORTS TO GRANTOR TRUST CERTIFICATEHOLDERS

     

    Section
      3.01.  Administration
      of the Trust Fund and the Underlying Security.

     

    If
      at any
      time the Grantor Trust Trustee, as a holder of the Underlying Securities, is
      requested in such capacity, whether by a related Grantor Trust
      Certificateholder, a holder of a certificate or note of any Underlying Series
      or
      a party to the related Underlying Agreement or any other Person, to take any
      action (other than, for the avoidance of doubt, the surrender of the Bear
      Stearns ARM Trust 2007-2 Class II-A-1 Notes in exchange for a corresponding
      class of REMIC notes, as required by and described in the related Underlying
      Agreement) or to give any consent, approval or waiver, including, without
      limitation, in connection with an amendment of any Underlying Agreement, the
      Grantor Trust Trustee shall promptly notify all of the related Holders of
      Grantor Trust Certificates and the Depositor of such request and of its planned
      course of action with respect thereto and shall, in its capacity as a holder
      of
      the related Underlying Securities, take such action in connection with the
      exercise and/or enforcement of any rights and/or remedies available to it in
      such capacity with respect to such request, as the related Majority Grantor
      Trust Certificateholder of the related Grantor Trust Certificates shall direct
      in writing.

     

    Section
      3.02.  Collection
      of Monies.

     

    (a)  In
      connection with its receipt of any distribution on the Underlying Securities
      on
      any Underlying Security Distribution Date, the Grantor Trust Trustee shall
      review the related Underlying Distribution Date Statement and shall confirm
      that
      the aggregate amount of such distribution received by it with respect to the
      Underlying Securities is consistent with the Underlying Distribution Date
      Statements (it being understood that the Grantor Trust Trustee shall be entitled
      to rely on the accuracy and correctness of the Underlying Distribution Date
      Statements).

     

    (b)  If
      the
      Grantor Trust Trustee receives a Notice of Final Distribution in respect of
      any
      Underlying Security, the Grantor Trust Trustee shall present and surrender
      the
      related Underlying Security which is in certificated form for final payment
      thereon, if required, in accordance with the terms and conditions of the related
      Underlying Agreement and such notice.  The Grantor Trust Trustee shall
      promptly deposit in the Certificate Account the final distribution received
      upon
      presentation and surrender of such Underlying Security for distribution in
      accordance with Section 3.05 hereof on the next succeeding Distribution Date
      for
      the Grantor Trust Certificates.

     

    Section
      3.03.  Establishment
      of Certificate Account; Deposits Therein.

     

    (a)  The
      Grantor Trust Trustee, for the benefit of the related Grantor Trust
      Certificateholders, shall establish and maintain one or more interest bearing
      trust accounts (collectively, the “Certificate Account”), each of which
      shall be an Eligible Account, entitled “Wells Fargo Bank, N.A., as grantor trust
      trustee for the registered Holders of Bear Stearns Structured Products Inc.
      Trust 2007-R6, Grantor Trust Certificates, Series 2007-R6,” held in trust by the
      Grantor Trust Trustee for the benefit of the related Grantor Trust
      Certificateholders with respect to the portion of such accounts in the related
      Sub-Trust.  The Grantor Trust Trustee shall cause to be deposited
      directly into the Certificate Account all distributions received on the
      Underlying Securities by the Grantor Trust Trustee, from whatever source, and
      all amounts received by it representing payment of a Repurchase Price pursuant
      to Section 2.03(c), subsequent to the Closing Date.  The Certificate
      Account is initially located at the Grantor Trust Trustee.  The
      Grantor Trust Trustee shall give notice to the Depositor and to the related
      Grantor Trust Certificateholders of any new location of the Certificate Account
      prior to any change thereof.

     

    (b)  In
      the
      event that payments in respect of the Underlying Securities are received by
      the
      Grantor Trust Trustee prior to the related Distribution Date, the Grantor Trust
      Trustee may invest such funds deposited in the Certificate Account in one or
      more Permitted Investments held in the name of the Grantor Trust Trustee and
      shall receive as compensation, any interest or investment income earned on
      such
      Permitted Investments, which may be withdrawn by the Grantor Trust Trustee
      on
      each Distribution Date and shall not constitute Available Funds. Notwithstanding
      the foregoing, no such Permitted Investment may mature later than such related
      Distribution Date and no such investment shall be sold prior to its maturity
      date. The amount of any losses incurred in respect of any such investments
      shall
      be deposited in the Certificate Account by the Grantor Trust Trustee immediately
      as realized out of its own funds.

     

    (c)  The
      Depositor shall cause all distributions received on the Underlying Securities
      by
      the Depositor or any of its Affiliates after the Closing Date to be remitted
      promptly to the Grantor Trust Trustee for deposit into the Certificate
      Account.

     

    Section
      3.04.  Permitted
      Withdrawals From the Certificate Account.

     

    The
      Grantor Trust Trustee may from time to time withdraw funds from the Certificate
      Account for the following purposes:

     

    (i)  to
      make
      distributions in the amounts and in the manner provided for in Section
      3.05;

     

    (ii)  to
      pay to
      the Person entitled thereto any amount deposited in the Certificate Account
      in
      error;

     

    (iii)  to
      clear
      and terminate the Certificate Account upon the termination of this Agreement;
      and

     

    (iv)  to
      pay
      itself, as additional compensation, the net reinvestment income permitted to
      be
      paid to it as provided in Section 3.03(b).

     

    On
      each
      Distribution Date, the Grantor Trust Trustee shall withdraw all funds from
      the
      Certificate Account and shall use such funds withdrawn from the Certificate
      Account only for the purposes described in this Section 3.04 and in Section
      3.05.

     

    Section
      3.05.  Distributions.

     

    (a)  On
      each
      Distribution Date, the Grantor Trust Trustee shall withdraw amounts from the
      Certificate Account representing the Group I Available Funds and apply them
      to
      pay the Group I Grantor Trust Certificates in the following manner and order
      of
      priority:

     

    (i)  from
      amounts representing interest received on the Group I Underlying Securities,
      if
      any, to the Holders of the Class I-A-1 Grantor Trust Certificates and Class
      I-A-2 Grantor Trust Certificates, on a pro rata basis, as a distribution of
      interest, the Interest Distribution Amount for the Class I-A-1 Grantor Trust
      Certificates and Class I-A-2 Grantor Trust Certificates for such Distribution
      Date; and

     

    (ii)  from
      amounts representing principal received on the Group I Underlying Securities,
      if
      any, to the Holders of the Class I-A-1 Grantor Trust Certificates and Class
      I-A-2 Grantor Trust Certificates, on a pro rata basis, as distributions of
      principal, until the Current Principal Amounts of the Class I-A-1 Grantor Trust
      Certificates and Class I-A-2 Grantor Trust Certificates have been reduced to
      zero.

     

    (b)  On
      each
      Distribution Date, the Grantor Trust Trustee shall withdraw amounts from the
      Certificate Account representing the Group II Available Funds and apply them
      to
      pay the Group II Grantor Trust Certificates in the following manner and order
      of
      priority:

     

    (i)  from
      amounts representing interest received on the Group II Underlying Securities,
      if
      any to the Holders of the Class II-A-1 Grantor Trust Certificates and Class
      II-A-2 Grantor Trust Certificates, on a pro rata basis, as a distribution of
      interest, the Interest Distribution Amount for the Class II-A-1 Grantor Trust
      Certificates and Class II-A-2 Grantor Trust Certificates for such Distribution
      Date; and

     

    (ii)  from
      amounts representing principal received on the Group II Underlying Securities,
      if any, to the Holders of the Class II-A-1 Grantor Trust Certificates and Class
      II-A-2 Grantor Trust Certificates, on a pro rata basis, as distributions of
      principal, until the Current Principal Amounts of the Class II-A-1 Grantor
      Trust
      Certificates and Class II-A-2 Grantor Trust Certificates have been reduced
      to
      zero.

     

    (c)  All
      distributions made to Holders of the Grantor Trust Certificates pursuant to
      Sections 3.05(a) and 3.05(b) on each Distribution Date shall be allocated
prorata among the outstanding related Grantor Trust Certificates
      based upon their respective Percentage Interests and, except in the case of
      the
      final distribution to the Holders of the Grantor Trust Certificates, shall
      be
      made to the related Holders of record on the related Record
      Date.  Distributions to any Grantor Trust Certificateholder on any
      Distribution Date shall be made by wire transfer of immediately available funds
      to the account of such Grantor Trust Certificateholder at a bank or other entity
      having appropriate facilities therefor, if such Grantor Trust Certificateholder
      shall have so notified the Grantor Trust Trustee in writing (which wiring
      instructions may be in the form of a standing order applicable to all future
      Distribution Dates) no less than five (5) Business Days prior to the related
      Record Date (or, in the case of the initial Distribution Date, no later than
      the
      related Record Date) and is the registered owner of related Grantor Trust
      Certificates with an aggregate initial Current Principal Amount of not less
      than
      $1,000,000, or otherwise by check mailed by first class mail to the address
      of
      such Grantor Trust Certificateholder appearing in the Certificate
      Register.  Final distribution to each Grantor Trust Certificateholder
      will be made in like manner, but only upon presentment and surrender of such
      Grantor Trust Certificate at the Corporate Trust Office or such other location
      specified in the notice to Grantor Trust Certificateholders of such final
      distribution.

     

    (d)  Notwithstanding
      any other provision of this Agreement, the Grantor Trust Trustee shall comply
      with all federal withholding requirements respecting payments to Grantor Trust
      Certificateholders of interest or the accrual of discount that the Grantor
      Trust
      Trustee reasonably believes are applicable under the Code.  The
      consent of Grantor Trust Certificateholders shall not be required for such
      withholding.  In the event the Grantor Trust Trustee does withhold any
      amount from payments to any Grantor Trust Certificateholder pursuant to federal
      withholding requirements, the Grantor Trust Trustee shall indicate the amount
      withheld to such Grantor Trust Certificateholders.

     

    (e)  Realized
      Losses.  On any Distribution Date, following distributions to be
      made on that Distribution Date, any Realized Losses (as defined in each
      Underlying Agreement) allocated (a) to the Group I Underlying Securities, will
      first be allocated to the Class I-A-2 Grantor Trust Certificates, until the
      Current Principal Amount thereof has been reduced to zero, and then to the
      Class
      I-A-1 Grantor Trust Certificates, until the Current Principal Amount thereof
      has
      been reduced to zero; and (b) to the Group II Underlying Securities, will first
      be allocated to the Class II-A-2 Grantor Trust Certificates, until the Current
      Principal Amount thereof has been reduced to zero, and then to the Class II-A-1
      Grantor Trust Certificates, until the Current Principal Amount thereof has
      been
      reduced to zero.

     

    Section
      3.06.  Statements
      to Grantor Trust Certificateholders.

     

    On
      each
      Distribution Date, the Grantor Trust Trustee shall prepare and make available
      to
      each Grantor Trust Certificateholder, the Depositor and the Rating Agencies,
      on
      its website, a statement with respect to such Distribution Date,
      stating:

     

    (i)  the
      related Available Funds for such Distribution Date, including the cash flows
      received and the sources thereof for distributions;

     

    (ii)  the
      Interest Distribution Amount and the amount with respect to principal paid
      on
      the related Grantor Trust Certificates with respect to such Distribution
      Date;

     

    (iii)  the
      Current Principal Amount of the related Grantor Trust Certificates before and
      after applying payments on such Distribution Date;

     

    (iv)  the
      applicable record dates, accrual dates and actual Distribution Dates for the
      period;

     

    (v)  the
      Pass-Through Rate on the related Grantor Trust Certificates for such
      Distribution Date; and

     

    (vi)  the
      interest rate on the related Underlying Securities for such Distribution
      Date.

     

    In
      the
      case of the information furnished pursuant to clause (ii) above, the amounts
      shall also be expressed as a dollar amount per $100,000 of principal face
      amount.

     

    The
      Grantor Trust Trustee may make available each month, to any interested party,
      the monthly statement to Grantor Trust Certificateholders via the Grantor Trust
      Trustee’s website initially located at www.ctslink.com.
      Assistance in using the website can be obtained by calling the Grantor Trust
      Trustee’s customer service desk at (866) 846-4526. Parties that are unable to
      use the above distribution option are entitled to have a paper copy mailed
      to
      them via first class mail by calling the Grantor Trust Trustee’s customer
      service desk and indicating such. The Grantor Trust Trustee shall have the
      right
      to change the way such reports are distributed in order to make such
      distribution more convenient and/or more accessible to the parties, and the
      Grantor Trust Trustee shall provide timely and adequate notification to all
      parties regarding any such change.

     

    In
      addition, the Grantor Trust Trustee promptly will furnish to the Depositor,
      and
      upon the written request of a Grantor Trust Certificateholder, to such Grantor
      Trust Certificateholder, copies of any written notices, statements, reports
      or
      other written communications, received by the Grantor Trust Trustee in respect
      of the related Underlying Securities.

     

    The
      Grantor Trust Trustee shall be responsible for preparing, at its own expense,
      executing and filing in a timely manner, on behalf of the Trust Fund and for
      the
      Trust Fund as a grantor trust under the Code, federal income tax and information
      returns and reports with the Internal Revenue Service (“IRS”) and income tax and
      information returns and reports of any other state or local taxing authority
      as
      are required to be so filed, using a calendar year as the taxable year of the
      Trust on an accrual basis including the information reportable under the WHFIT
      Regulations as provided below. The Depositor and each Holder of the Grantor
      Trust Certificates shall provide the Grantor Trust Trustee, no later than
      December 31, 2007 (to the extent then ascertainable) and from time to time
      thereafter, all information deemed necessary and requested by the Grantor Trust
      Trustee to fulfill its obligations under this paragraph and the paragraphs
      below. The Grantor Trust Trustee shall furnish to each Grantor Trust
      Certificateholder at the time required by law such information reports or
      returns as are required by applicable federal, state or local law with respect
      to the Trust Fund to enable Grantor Trust Certificateholders to prepare their
      tax returns and will furnish comparable information to the IRS and other taxing
      authorities as and when required by law to do so.

     

    The
      parties hereto and each Holder of a Grantor Trust Certificate, by acceptance
      of
      its interest in such Grantor Trust Certificate, agree to treat the Trust Fund
      as
      a WHFIT that is a NMWHFIT. The Grantor Trust Trustee shall report as required
      under the WHFIT Regulations to the extent such information as is reasonably
      necessary and requested by the Grantor Trust Trustee to enable the Grantor
      Trust
      Trustee to do so is provided to the Grantor Trust Trustee on a timely
      basis.  Each Holder of Grantor Trust Certificates and the Depositor
      shall provide (to the extent known by the Depositor) the Grantor Trust Trustee
      with information identifying any Holders of Grantor Trust Certificates that
      are
“middlemen” as defined by the WHFIT Regulations.  The Grantor Trust
      Trustee shall not be liable for any tax reporting penalties that may arise
      under
      the WHFIT Regulations as a result of the incorrect determination of the status
      of the Trust Fund as a WHFIT.

     

    The
      Grantor Trust Trustee, in its discretion, shall report required WHFIT
      information using either the cash or accrual method, except to the extent the
      WHFIT Regulations specifically require a different method.  The
      Grantor Trust Trustee shall be under no obligation to determine whether a Holder
      of a Grantor Trust Certificate uses the cash or accrual method.  The
      Grantor Trust Trustee shall make available WHFIT information to the Holders
      of
      Grantor Trust Certificates annually in accordance with the WHFIT
      Regulations.  In addition, the Grantor Trust Trustee shall not be
      responsible or liable for providing subsequently amended, revised or updated
      information to any Holder of Grantor Trust Certificates, unless requested by
      any
      such Holder.

     

    The
      Grantor Trust Trustee shall not be liable for failure to meet the reporting
      requirements of the WHFIT Regulations nor for any penalties thereunder if such
      failure is due to: (i) the lack of reasonably necessary information being
      provided to the Grantor Trust Trustee as required in the second preceding
      paragraph, (ii) incomplete, inaccurate or untimely information being provided
      to
      the Grantor Trust Trustee or (iii) the inability of the Grantor Trust Trustee,
      after good faith efforts, to alter its existing information reporting systems
      to
      capture information necessary to fully account for any updates and revisions
      to
      the WHFIT Regulations for the 2007 calendar year.  Each Holder of a
      Grantor Trust Certificate, by acceptance of its interest in such Grantor Trust
      Certificate, shall be deemed to have agreed to provide, and shall so provide,
      the Grantor Trust Trustee with information regarding any sale of such Grantor
      Trust Certificate, including the price, amount of proceeds and date of
      sale.  Absent receipt of such information, and unless informed
      otherwise by the Depositor, the Grantor Trust Trustee will assume there is
      no
      secondary market trading of interests in the Trust Fund for purposes of the
      WHFIT Regulations.

     

    To
      the
      extent required by the WHFIT Regulations, the Grantor Trust Trustee shall
      publish on an appropriate website the CUSIPs for the Grantor Trust
      Certificates.  The Grantor Trust Trustee shall make reasonable good
      faith efforts to keep the website accurate and updated to the extent CUSIPs
      have
      been received.  Absent the receipt of a CUSIP, the Grantor Trust
      Trustee shall use a reasonable identifier number in lieu of such missing
      CUSIP.  The Grantor Trust Trustee shall not be liable for investor
      reporting delays that result from the receipt of inaccurate or untimely CUSIP
      information.

     

    The
      Grantor Trust Trustee shall be entitled to additional reasonable compensation
      for changes in reporting required in respect of the WHFIT Regulations that
      arise
      as a result of a change in the WHFIT Regulations or a change in interpretation
      of the WHFIT Regulations by the IRS or the Depositor or its counsel, in each
      case, following the Closing Date, if such change requires, in the Grantor Trust
      Trustee’s sole discretion, a material increase in the Grantor Trust Trustee’s
      reporting obligations under the WHFIT Regulations in respect of the Trust
      Fund.

     

    Section
      3.07.  Access
      to Certain Documentation and Information.

     

    The
      Grantor Trust Trustee shall provide to the Depositor access to all reports,
      documents and records maintained by the Grantor Trust Trustee in respect of
      its
      duties hereunder, such access being afforded without charge but only upon three
      (3) Business Days’ written request and during normal business hours at offices
      designated by the Grantor Trust Trustee.

     

    Section
      3.08.  Calculation
      of Distribution Amounts.

     

    All
      calculations of Available Funds, the Interest Distribution Amount and amounts
      payable with respect to principal for any Distribution Date shall be performed
      by the Grantor Trust Trustee in reliance on the information provided to it
      in
      the applicable Underlying Distribution Date Statements.

     

    Section
      3.09.  Annual
      Statement as to Compliance.

     

    (a)  The
      Grantor Trust Trustee shall deliver (or otherwise make available) to the
      Depositor not later than March 15th of each calendar year in which a Form 10-K
      is required to be filed for the Trust beginning in 2008, an Officer’s
      Certificate (an “Annual Statement of Compliance”) stating, as to the signatory
      thereof, that (i) a review of the activities of the Grantor Trust Trustee during
      the preceding calendar year and of its performance under this Agreement has
      been
      made under such officer’s supervision and (ii) to the best of such officer’s
      knowledge, based on such review, the Grantor Trust Trustee has fulfilled all
      of
      its obligations under this Agreement in all material respects throughout such
      year or applicable portion thereof, or, if there has been a failure to fulfill
      any such obligation in any material respect, specifying each such failure known
      to such officer and the nature and status of the cure provisions
      thereof.  Such Annual Statement of Compliance shall contain no
      restrictions or limitations on its use.

     

    (b)  The
      servicer, master servicer and/or securities administrator for each
      of  the Underlying Series, other than the Underlying 2007 Series, will
      be required to provide to the Grantor Trust Trustee and the Depositor an annual
      statement of compliance pursuant to the related Underlying Agreement or a side
      letter agreement. The Depositor, in its capacity as the depositor for each
      Underlying Series, shall forward any annual statement of compliance to the
      Grantor Trust Trustee to the extent not otherwise received by the Grantor Trust
      Trustee (pursuant to a side letter agreement or an Underlying Agreement in
      its
      capacity as master servicer or securities administrator of the related
      Underlying Series) and any other annual statement of compliance of a Servicer
      that is required to be filed under the related Form 10-K no later than two
      Business Days following March 15th of each calendar year in which a Form 10-K
      is
      required to be filed for the Trust.

     

    (c)  Failure
      of the Grantor Trust Trustee to comply with this Section 3.09 (including with
      respect to the timeframes required in this Section) which failure results in
      a
      failure to timely file the related Form 10-K, shall, upon written notice from
      the Depositor, constitute a default, and, in addition to whatever rights the
      Depositor may have under this Agreement and at law or equity or to damages,
      including injunctive relief and specific performance, the Depositor may upon
      notice immediately terminate all of the rights and obligations of the Grantor
      Trust Trustee under this Agreement and in and to the Underlying Securities
      and
      the proceeds thereof without compensating the Grantor Trust Trustee for the
      same
      (but subject to the Grantor Trust Trustee’s right to reimbursement of all
      amounts for which it is entitled to be reimbursed prior to the date of
      termination).  This paragraph shall supersede any other provision in
      this Agreement or any other agreement to the contrary.

     

    Section
      3.10.  Assessments
      of Compliance and Attestation Reports.

     

    Pursuant
      to Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation
      AB,
      the Grantor Trust Trustee (the “Attesting Party”) shall deliver (or otherwise
      make available) to the Depositor on or before March 15th of each calendar year
      in which a report on Form 10-K is required to be filed with the Commission
      with
      respect to the Grantor Trust Certificates, beginning in 2008, a report regarding
      the Attesting Party’s assessment of compliance (an “Assessment of Compliance”)
      with the Servicing Criteria applicable to it during the preceding calendar
      year.  The Assessment of Compliance, as set forth in Regulation AB,
      must contain the following:

     

    (a)           A
      statement by an authorized officer of the Attesting Party of its authority
      and
      responsibility for assessing compliance with the Servicing Criteria applicable
      to the Attesting Party;

     

    (b)           A
      statement by an authorized officer that the Attesting Party used the Servicing
      Criteria identified in Exhibit C hereto to assess compliance with the Servicing
      Criteria applicable to the Attesting Party;

     

    (c)           An
      assessment by such officer of the Attesting Party’s compliance with the
      applicable Servicing Criteria for the period consisting of the preceding
      calendar year, including disclosure of any material instance of noncompliance
      with respect thereto during such period, which assessment shall be based on
      the
      activities the Attesting Party performs with respect to asset-backed securities
      transactions taken as a whole involving the Attesting Party, that are backed
      by
      the same asset type as those backing the Underlying Securities;

     

    (d)           A
      statement that a registered public accounting firm has issued an attestation
      report on the Attesting Party’s Assessment of Compliance for the period
      consisting of the preceding calendar year; and

     

    (e)           A
      statement as to which of the Servicing Criteria, if any, are not applicable
      to
      the Attesting Party, which statement shall be based on the activities the
      Attesting Party performs with respect to asset-backed securities transactions
      taken as a whole involving the Attesting Party, that are backed by the same
      asset type as those backing the Grantor Trust Certificates.

     

    Such
      report at a minimum shall address each of the Servicing Criteria specified
      on
      Exhibit C hereto which are indicated as applicable to the Attesting
      Party.

     

    On
      or
      before March 15th of each calendar year in which a report on Form 10-K is
      required to be filed with the Commission with respect to the Grantor Trust
      Certificates, beginning in 2008, the Attesting Party shall furnish to the
      Depositor a report (an “Attestation Report”) by a registered public accounting
      firm that attests to, and reports on, the Assessment of Compliance made by
      the
      Attesting Party, as required by Rules 13a-18 and 15d-18 of the Exchange Act
      and
      Item 1122(b) of Regulation AB, which Attestation Report must be made in
      accordance with standards for attestation reports issued or adopted by the
      Public Company Accounting Oversight Board.

     

    Each
      party to the Underlying Series that is determined by the Depositor to be
“participating in the servicing function” within the meaning of Item 1122 of
      Regulation AB will be required to provide to the Grantor Trust Trustee and/or
      the Depositor an assessment of compliance and attestation report pursuant to
      the
      related Underlying Agreement or a side letter agreement. The Depositor, in
      its
      capacity as depositor for each Underlying Series, shall forward any assessment
      of compliance and attestation report to the Grantor Trust Trustee to the extent
      not otherwise received by the Grantor Trust Trustee (pursuant to a side letter
      agreement or an Underlying Agreement in its capacity as master servicer or
      securities administrator of any Underlying Series) and any other assessment
      of
      compliance and attestation report required to be filed under the related Form
      10-K no later than two Business Days following March 15th in any
      calendar
      year in which a Form 10-K is required to be filed by the Trust. The Depositor
      will identify in writing by no later than January 30th of each
      year for
      which a Form 10-K is required to be filed for the Trust and provide any
      assessment of compliance and attestation report to the Grantor Trust Trustee
      required to be included in any Form 10-K to the extent not otherwise received
      by
      the Grantor Trust Trustee as set forth in the previous sentence and, with
      respect to each Underlying 2007 Series, cause such assessment of compliance
      and
      attestation reports that are required to be included in such Form 10-K to be
      incorporated by reference.

     

    The
      Depositor shall confirm that each Assessment of Compliance delivered to it
      addresses all of the relevant Servicing Criteria and notify the Grantor Trust
      Trustee of any exceptions. Notwithstanding the foregoing, as to any
      subcontractor, an Assessment of Compliance is not required to be delivered
      unless it is required as part of a Form 10-K with respect to the Trust
      Fund.

     

    Failure
      of the Grantor Trust Trustee to comply with this Section 3.10 (including with
      respect to the timeframes required in this Section) which failure results in
      a
      failure to timely file the related Form 10-K, shall, upon written notice from
      the Depositor, constitute a default and the Depositor shall, in addition to
      whatever rights the Depositor may have under this Agreement and at law or equity
      or to damages, including injunctive relief and specific performance, upon notice
      immediately terminate all of the rights and obligations of the Grantor Trust
      Trustee under this Agreement and in and to the Underlying Securities and the
      proceeds thereof without compensating the Grantor Trust Trustee for the same
      (but subject to the Grantor Trust Trustee’s right to reimbursement of all
      amounts for which it is entitled to be reimbursed prior to the date of
      termination).  This paragraph shall supersede any other provision in
      this Agreement or any other agreement to the contrary.

     

    Section
      3.11.  Reports
      Filed with Securities and Exchange Commission.

     

    (a)           (i)
      (A) Within 15 days after each Distribution Date, for so long as the Trust is
      subject to Exchange Act reporting requirements, the Grantor Trust Trustee shall,
      in accordance with industry standards, prepare and file with the Commission
      via
      the Electronic Data Gathering and Retrieval System (“EDGAR”), a Distribution
      Report on Form 10-D, signed by the Depositor, with a copy of the monthly
      statement to be furnished by the Grantor Trust Trustee to the Grantor Trust
      Certificateholders for such Distribution Date pursuant to Section 3.06 hereof,
      including any monthly statement with respect to any Underlying Series, and
      in
      the case of the Underlying 2007 Series, the Depositor shall incorporate by
      reference the related monthly statement included in the Form 10-D filed for
      each
      Underlying 2007 Series; provided that, the Grantor Trust Trustee shall have
      received no later than five (5) calendar days after the related Distribution
      Date, all information required to be provided to the Grantor Trust Trustee
      as
      described in clause (a)(iv) below and pursuant to the side letter
      agreements.  Any disclosure that is in addition to the monthly
      statement and that is required to be included on Form 10-D, including any
      information that is required to be filed under Form 10-D in connection with
      any
      of the Underlying Series (other than the Underlying 2007 Series) pursuant to
      the
      Underlying Agreements, the side letter agreements or as otherwise required
      to be
      provided or incorporated by reference as instructed by the Depositor
      (“Additional Form 10-D Disclosure”), shall be, pursuant to the paragraph (B)
      below, reported by the parties set forth on Exhibit D and reported by parties
      related to the Underlying Series pursuant to certain side letter agreements
      to
      the Grantor Trust Trustee, or otherwise provided by the Depositor with respect
      to any information required to be provided pursuant to Item 1117 or Item 1119
      of
      Regulation AB, and the Depositor and approved for inclusion by the Depositor.
      The Grantor Trust Trustee will have no duty or liability for any failure
      hereunder to determine or prepare any Additional Form 10-D Disclosure absent
      such reporting (other than in the case where the Grantor Trust Trustee is the
      reporting party as set forth in Exhibit D) and approval.

     

    Notwithstanding
      anything in this Agreement or the Underlying Agreements to the contrary, the
      Grantor Trust Trustee, as master servicer and/or securities administrator for
      each of the Underlying Series, shall aggregate and make available to the
      Depositor all information provided pursuant to Item 1121 of Regulation AB with
      respect to each Underlying Series for purposes of including such information
      in
      each Form 10-D that is required to be filed under this Agreement.

     

    (B)
      Within five (5) calendar days after the related Distribution Date, (i) the
      parties set forth in Exhibit D and the parties related to the Underlying Series
      and required to provide information pursuant to the Underlying Agreements and
      certain side letter agreements shall be required to provide, pursuant to Section
      3.11(a)(iv) below and pursuant to such side letter agreements, to the Grantor
      Trust Trustee and the Depositor, to the extent known by a responsible officer
      thereof, in EDGAR-compatible format, or in such other form as otherwise agreed
      upon by the Grantor Trust Trustee and the Depositor and such party, the form
      and
      substance of any Additional Form 10-D Disclosure, if applicable and (ii) the
      Depositor shall approve, as to form and substance, or disapprove, as the case
      may be, the inclusion of the Additional Form 10-D Disclosure on Form 10-D.
      To
      the extent not otherwise required under any related Underlying Agreement or
      side
      letter agreement, the Depositor shall provide to the Grantor Trust Trustee
      any
      Additional Form 10-D Disclosure (other than any information required under
      Item
      1121 of Regulation AB) for any servicer or trustee of an Underlying Series.
      The
      Depositor shall be responsible for any reasonable fees and expenses assessed
      or
      incurred by the Grantor Trust Trustee in connection with including any Form
      10-D
      Disclosure Information on Form 10-D pursuant to this Section.

     

    (C)
      After
      preparing the Form 10-D, the Grantor Trust Trustee shall forward electronically
      a copy of the Form 10-D to the Depositor for review.  Within two (2)
      Business Days after receipt of such copy, but no later than the 12th calendar
      day after the Distribution Date (provided that, the Grantor Trust Trustee
      forwards a copy of the Form 10-D no later than the 10th calendar after the
      Distribution Date), the Depositor shall notify the Grantor Trust Trustee in
      writing (which may be furnished electronically) of any changes to or approval
      of
      such Form 10-D.  In the absence of receipt of any written changes or
      approval, the Grantor Trust Trustee shall be entitled to assume that such Form
      10-D is in final form and the Grantor Trust Trustee may proceed with the filing
      of the Form 10-D.  No later than the 13th calendar day after the
      related Distribution Date, a duly authorized officer of the Depositor shall
      sign
      the Form 10-D and return an electronic or fax copy of such signed Form 10-D
      (with an original executed hard copy to follow by overnight mail) to the Grantor
      Trust Trustee.  If a Form 10-D cannot be filed on time or if a
      previously filed Form 10-D needs to be amended, the Grantor Trust Trustee shall
      follow the procedures set forth in Section 3.11(a)(v). Promptly (but no later
      than one (1) Business Day) after filing with the Commission, the Grantor Trust
      Trustee shall make available on its internet website a final executed copy
      of
      each Form 10-D filed by the Grantor Trust Trustee.  The parties to
      this Agreement acknowledge that the performance by the Grantor Trust Trustee
      of
      its duties under Sections 3.11(a)(i) and (v) related to the timely preparation,
      execution and filing of Form 10-D is contingent upon such parties strictly
      observing all applicable deadlines in the performance of their duties under
      such
      Sections. The Grantor Trust Trustee shall not have any liability for any loss,
      expense, damage, claim arising out of or with respect to any failure to properly
      prepare and timely file such Form 10-D, where such failure results from the
      Grantor Trust Trustee’s inability or failure to receive, on a timely basis, any
      information from any other party hereto needed to prepare, arrange for execution
      or file such Form 10-D, not resulting from its own negligence, bad faith or
      willful misconduct.

     

    Each
      of
      Form 10-D and Form 10-K requires the registrant to indicate (by checking “yes”
or “no”) that it “(1) has filed all reports required to be filed by Section 13
      or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter
      period that the registrant was required to file such reports), and (2) has
      been
      subject to such filing requirements for the past 90 days.”  The
      Depositor hereby represents to the Grantor Trust Trustee that the Depositor
      has
      filed all such required reports during the preceding twelve (12) months and
      it
      has been subject to such filing requirements for the past 90
      days.  The Depositor shall notify the Grantor Trust Trustee in
      writing, no later than the fifth calendar day after the related Distribution
      Date with respect to the filing of a report on Form 10-D and no later than
      March
      15th with
      respect to the filing of a report on Form 10-K, if the answer to the questions
      should be “no.”  The Grantor Trust Trustee shall be entitled to rely
      on such representations in preparing, executing and/or filing any such
      report.

     

    (ii)
      (A)
      Within four (4) Business Days after the occurrence of an event requiring
      disclosure on Form 8-K (each such event, a “Reportable Event”), for so long as
      the Trust is subject to Exchange Act reporting requirements, the Grantor Trust
      Trustee shall prepare and file, at the direction of the Depositor, on behalf
      of
      the Trust, any Form 8-K, as required by the Exchange Act; provided that, the
      Depositor shall prepare and file the initial Form 8-K in connection with the
      issuance of the Grantor Trust Certificates.  Any disclosure or
      information related to a Reportable Event or that is otherwise required to
      be
      included on Form 8-K, including a Reportable Event with respect to an Underlying
      Series (other than the Underlying 2007 Series) that, but for the filing of
      a
      Form 15 for any such Underlying Series, would be required to be reported in
      a
      Form 8-K for such Underlying Series, as otherwise required to be provided or
      incorporated by reference as instructed by the Depositor (“Form 8-K Disclosure
      Information”), shall be, pursuant to the paragraph immediately below, reported
      by the parties set forth on Exhibit D and the parties related to any Underlying
      Series pursuant to the related Underlying Agreement or side letter agreement
      to
      the Grantor Trust Trustee and the Depositor and approved by the Depositor,
      and
      the Grantor Trust Trustee will have no duty or liability for any failure
      hereunder to determine or prepare any Additional Form 8-K Disclosure absent
      such
      reporting (other than in the case where the Grantor Trust Trustee is the
      reporting party as set forth in Exhibit D) and approval. To the extent not
      otherwise required under any related Underlying Agreement or side letter
      agreement, the Depositor shall provide to the Grantor Trust Trustee, by no
      later
      than the second (2nd) Business
      Day
      after the Reportable Event, any Additional Form 8-K Disclosure for any servicer
      or trustee of an Underlying Series required to be filed on Form
      8-K.

     

    (B)
      For
      so long as the Trust is subject to the Exchange Act reporting requirements,
      no
      later than the close of business New York City time on the second (2nd) Business
      Day
      after the occurrence of a Reportable Event  (i) the parties set forth
      in Exhibit D and parties related to the Underlying Series and required to
      provide information pursuant to the Underlying Agreements and certain side
      letter agreements shall be required pursuant to Section 3.11(a)(iv) below or
      such side letter agreements to provide to the Grantor Trust Trustee and the
      Depositor, to the extent known by a responsible officer thereof, in
      EDGAR-compatible format, or in such other form as otherwise agreed upon by
      the
      Grantor Trust Trustee and the Depositor and such party, the form and substance
      of any Form 8-K Disclosure Information, if applicable, and (ii) the Depositor
      shall approve, as to form and substance, or disapprove, as the case may be,
      the
      inclusion of the Form 8-K Disclosure Information on Form 8-K. The Depositor
      shall be responsible for any reasonable fees and expenses assessed or incurred
      by the Grantor Trust Trustee in connection with including any Form 8-K
      Disclosure Information on Form 8-K pursuant to this Section.

     

    (C)
      After
      preparing the Form 8-K, the Grantor Trust Trustee shall forward electronically
      a
      copy of the Form 8-K to the Depositor for review no later than noon New York
      time on the third (3rd) Business
      Day
      after the Reportable Event.  No later than the close of business New
      York City time on the third (3rd) Business
      Day
      after the Reportable Event, a duly authorized officer of the Depositor shall
      sign the Form 8-K and return an electronic or fax copy of such signed Form
      8-K
      (with an original executed hard copy to follow by overnight mail) to the Grantor
      Trust Trustee.  Promptly, but no later than the close of business on
      the 3rd Business Day after the Reportable Event, the Depositor shall notify
      the
      Grantor Trust Trustee in writing (which may be furnished electronically) of
      any
      changes to or approval of such Form 8-K filed by the Grantor Trust
      Trustee.  In the absence of receipt of any written changes or
      approval, the Grantor Trust Trustee shall be entitled to assume that such Form
      8-K is in final form and the Grantor Trust Trustee may proceed with the filing
      of the Form 8-K.  If a Form 8-K cannot be filed on time or if a
      previously filed Form 8-K needs to be amended, the Grantor Trust Trustee shall
      follow the procedures set forth in Section 3.11(a)(v). Promptly (but no later
      than one (1) Business Day) after filing with the Commission, the Grantor Trust
      Trustee shall make available on its internet website a final executed copy
      of
      each Form 8-K filed by the Grantor Trust Trustee.  The parties to this
      Agreement acknowledge that the performance by the Grantor Trust Trustee of
      its
      duties under this Section 3.11(a)(ii) related to the timely preparation,
      execution and filing of Form 8-K is contingent upon such parties strictly
      observing all applicable deadlines in the performance of their duties under
      this
      Section 3.11(a)(ii).  The Grantor Trust Trustee shall have no
      liability for any loss, expense, damage, claim arising out of or with respect
      to
      any failure to properly prepare, execute and/or timely file such Form 8-K,
      where
      such failure results from the Grantor Trust Trustee’s inability or failure to
      receive, on a timely basis, any information from any other party hereto needed
      to prepare, arrange for execution or file such Form 8-K, not resulting from
      its
      own negligence, bad faith or willful misconduct.

     

    (iii)
      (A)
      Within 90 days after the end of each fiscal year of the Trust or such earlier
      date as may be required by the Exchange Act (the “10-K Filing Deadline”) (it
      being understood that the fiscal year for the Trust ends on December 31st of
      each year), commencing in March 2008 and thereafter so long as the Trust is
      subject to Exchange Act reporting requirements, the Grantor Trust Trustee shall
      prepare and file on behalf of the Trust a Form 10-K, in form and substance
      as
      required by the Exchange Act.  Each such Form 10-K shall include the
      following items, in each case to the extent they have been delivered to the
      Grantor Trust Trustee within the applicable time frames set forth in this
      Agreement, (I) an annual compliance statement for the Grantor Trust Trustee
      and
      each master servicer, securities administrator, servicer and custodian for
      the
      Underlying Series other than the Underlying 2007 Series, as described under
      Section 3.09, (II)(A) the annual report on assessment of compliance with
      Servicing Criteria for the Grantor Trust Trustee and each master servicer,
      securities administrator, servicer and custodian for the Underlying Series
      other
      than the Underlying 2007 Series, as described under Section 3.10, and (B) if
      any
      such report on assessment of compliance with Servicing Criteria described under
      Section 3.10 identifies any material instance of noncompliance, disclosure
      identifying such instance of noncompliance, or if any such report on assessment
      of compliance with Servicing Criteria described under Section 3.10 is not
      included as an exhibit to such Form 10-K, disclosure that such report is not
      included and an explanation why such report is not included, (III)(A) the
      registered public accounting firm attestation report for the Grantor Trust
      Trustee and each master servicer, securities administrator, servicer and
      custodian for the Underlying Series, other than the Underlying 2007 Series,
      that
      is required to be filed under Form 10-K, as described under Section 3.10, and
      (B) if any registered public accounting firm attestation report described under
      Section 3.10 identifies any material instance of noncompliance, disclosure
      identifying such instance of noncompliance, or if any such registered public
      accounting firm attestation report is not included as an exhibit to such Form
      10-K, disclosure that such report is not included and an explanation why such
      report is not included, and (IV) a Sarbanes-Oxley Certification as described
      in
      Section 3.11 (a)(iii)(D) below (provided, however, that the Grantor Trust
      Trustee, at its discretion, may omit from the Form 10-K any annual compliance
      statement, assessment of compliance or attestation report that is not required
      to be filed with such Form 10-K pursuant to Regulation AB). Any disclosure
      or
      information in addition to (I) through (IV) above that is required to be
      included on Form 10-K, including the Form 10-K filed in connection with the
      Underlying Series (“Additional Form 10-K Disclosure”) shall be, pursuant to
      paragraph (B) below, reported by the parties set forth on Exhibit D and parties
      related to the Underlying Series and required to provide information pursuant
      to
      the Underlying Agreements and the side letter agreements to the Grantor Trust
      Trustee and the Depositor and approved by the Depositor, and the Grantor Trust
      Trustee will have no duty or liability for any failure hereunder to determine
      or
      prepare any Additional Form 10-K Disclosure absent such reporting (other than
      in
      the case where the Grantor Trust Trustee is the reporting party as set forth
      in
      Exhibit D) and approval. Such Form 10-K also shall incorporate by reference
      the
      Form 10-Ks filed with respect to each Underlying 2007 Series.

     

    Notwithstanding
      anything in this Agreement or the Underlying Agreements to the contrary, the
      Grantor Trustee shall aggregate all information provided by the parties related
      to the Underlying Series pursuant to the Underlying Agreements, the side letter
      agreements or as otherwise required to be provided by the Depositor or
      incorporated by reference as instructed by the Depositor, to the Depositor
      or
      the Grantor Trust Trustee, and shall include such information in any Form 10-K
      filed pursuant to this Agreement to the extent such information is required
      to
      be included in such Form 10-K and is received by the Grantor Trust
      Trustee.

     

    (B)
      No
      later than March 15th of each year that the Trust is subject to the Exchange
      Act
      reporting requirements, commencing in 2008, (i) the parties set forth in Exhibit
      D and parties related to the Underlying Series and required to provide
      information pursuant to the Underlying Agreements and certain side letter
      agreements shall be required to provide pursuant to Section 3.11(a)(iv) below
      or
      such Underlying Agreements or side letter agreements to the Grantor Trust
      Trustee and the Depositor, to the extent known by a responsible officer thereof,
      in EDGAR-compatible format, or in such other form as otherwise agreed upon
      by
      the Grantor Trust Trustee and the Depositor and such party, the form and
      substance of any Additional Form 10-K Disclosure, if applicable, and (ii) the
      Depositor will approve, as to form and substance, or disapprove, as the case
      may
      be, the inclusion of the Additional Form 10-K Disclosure on Form
      10-K.  To the extent not otherwise required under any related
      Underlying Agreement or side letter agreement, the Depositor shall provide
      to
      the Grantor Trust Trustee, by no later than two Business Days after the date
      specified above, any Additional Form 10-K Disclosure for any Servicer of an
      Underlying Series. The Depositor shall be responsible for any reasonable fees
      and expenses assessed or incurred by the Grantor Trust Trustee in connection
      with including any Form 10-K Disclosure information on Form 10-K pursuant to
      this Section.

     

    (C)
      After
      preparing the Form 10-K, the Grantor Trust Trustee shall forward electronically
      a copy of the Form 10-K to the Depositor for review.  Within three (3)
      Business Days after receipt of such copy, but no later than March 25th of such
      year, the
      Depositor shall notify the Grantor Trust Trustee in writing (which may be
      furnished electronically) of any changes to or approval of such Form
      10-K.  In the absence of receipt of any written changes or approval,
      the Grantor Trust Trustee shall be entitled to assume that such Form 10-K is
      in
      final form and the Grantor Trust Trustee may proceed with the filing of the
      Form
      10-K.  No later than the close of business New York City time on the
      4th Business Day prior to the 10-K Filing Deadline, a senior officer of the
      Depositor shall sign the Form 10-K and return an electronic or fax copy of
      such
      signed Form 10-K (with an original executed hard copy to follow by overnight
      mail) to the Grantor Trust Trustee.  If a Form 10-K cannot be filed on
      time or if a previously filed Form 10-K needs to be amended, the Grantor Trust
      Trustee will follow the procedures set forth in Section
      3.11(a)(v).  Promptly (but no later than one (1) Business Day) after
      filing with the Commission, the Grantor Trust Trustee shall make available
      on
      its internet website a final executed copy of each Form 10-K filed by the
      Grantor Trust Trustee.  The parties to this Agreement acknowledge that
      the performance by the Grantor Trust Trustee of its duties under Sections
      3.11(a)(iii) and (v) related to the timely preparation, execution and filing
      of
      Form 10-K is contingent upon such parties strictly observing all applicable
      deadlines in the performance of their duties under such Sections and Section
      3.09 and Section 3.10.  The Grantor Trust Trustee shall not have any
      liability for any loss, expense, damage, claim arising out of or with respect
      to
      any failure to properly prepare, execute and/or timely file such Form 10-K,
      where such failure results from the Grantor Trust Trustee’s inability or failure
      to receive, on a timely basis, any information from any other party hereto
      needed to prepare, arrange for execution or file such Form 10-K, not resulting
      from its own negligence, bad faith or willful misconduct.

     

    (D)
      Each
      Form 10-K shall include a certification (the “Sarbanes-Oxley Certification”)
      required to be included therewith in compliance with Item 601(b)(31)(ii) of
      Regulation S-K, which shall be signed by the Certifying Person and delivered
      to
      the Grantor Trust Trustee no later than March 15th of each year in which the
      Trust is subject to the reporting requirements of the Exchange
      Act.  The Grantor Trust Trustee shall provide to the Depositor, as the
      Person who signs the Sarbanes-Oxley Certification (the “Certifying Person”), by
      March 10th of each year in which the Trust is subject to the reporting
      requirements of the Exchange Act and otherwise within a reasonable period of
      time upon request, a certification (a “Back-Up Certification”), in the form
      attached hereto as Exhibit B, upon which the Certifying Person, the entity
      for
      which the Certifying Person acts as an officer, and such entity’s officers,
      directors and Affiliates (collectively with the Certifying Person,
“Certification Parties”) can reasonably rely.  A senior officer of the
      Depositor shall serve as the Certifying Person on behalf of the
      Trust.

     

    (iv)
      With
      respect to any Additional Form 10-D Disclosure, Additional Form 10-K Disclosure
      or any Form 8-K Disclosure Information (collectively, the “Additional
      Disclosure”) relating to the Trust Fund and each Underlying Series, the Grantor
      Trust Trustee’s obligation to include such Additional Information in the
      applicable Exchange Act report is subject to receipt from the entity that is
      indicated in Exhibit D as the responsible party for providing that information,
      if other than the Grantor Trust Trustee, or from the parties to the Underlying
      Series and the Depositor, as and when required as described in Section
      3.11(a)(i) through (iii) above.  Such Additional Disclosure shall be
      accompanied by a notice substantially in the form of Exhibit E.  Each
      of the Sponsor, the Grantor Trust Trustee and the Depositor hereby agrees to
      notify and provide to the extent known to the Sponsor, the Grantor Trust Trustee
      and the Depositor all Additional Disclosure relating to the Trust Fund, with
      respect to which such party is indicated in Exhibit E as the responsible party
      for providing that information.  The Depositor shall be responsible
      for any reasonable fees and expenses assessed or incurred by the Grantor Trust
      Trustee in connection with including any Additional Disclosure information
      pursuant to this Section.

     

    So
      long
      as the Depositor is subject to the reporting requirements of the Exchange Act
      with respect to the Trust Fund, the Grantor Trust Trustee shall notify the
      Depositor of any bankruptcy or receivership with respect to the Grantor Trust
      Trustee or of any proceedings of the type described under Item 1117 of
      Regulation AB that have occurred as of the related Due Period, together with
      a
      description thereof, no later than the date on which such information is
      required of other parties hereto as set forth under this Section
      3.11.  In addition, the Grantor Trust Trustee shall notify the
      Depositor of any affiliations or relationships that develop after the Closing
      Date between the Grantor Trust Trustee and the Depositor or the Sponsor of
      the
      type described under Item 1119 of Regulation AB, together with a description
      thereof, no later than the date on which such information is required of other
      parties hereto as set forth under this Section 3.11. Should the identification
      of any of the Depositor or the Sponsor change, the Depositor shall promptly
      notify the Grantor Trust Trustee.

     

    (v)
      (A)
      On or prior to January 30th of the first year in which the Grantor Trust Trustee
      is able to do so under applicable law, the Grantor Trust Trustee shall prepare
      and file a Form 15 relating to the automatic suspension of reporting in respect
      of the Trust under the Exchange Act.

     

    (B)
      In
      the event that the Grantor Trust Trustee is unable to timely file with the
      Commission all or any required portion of any Form 8-K, 10-D or 10-K required
      to
      be filed by this Agreement because required disclosure information was either
      not delivered to it or delivered to it after the delivery deadlines set forth
      in
      this Agreement or for any other reason, the Grantor Trust Trustee shall promptly
      notify the Depositor.  In the case of Form 10-D and 10-K, the
      Depositor and the Grantor Trust Trustee shall cooperate to prepare and file
      a
      Form 12b-25 and a 10-DA and 10-KA as applicable, pursuant to Rule 12b-25 of
      the
      Exchange Act.  In the case of Form 8-K, the Grantor Trust Trustee
      will, upon receipt of all required Form 8-K Disclosure Information and upon
      the
      approval and direction of the Depositor, include such disclosure information
      on
      the next Form 10-D.  In the event that any previously filed Form 8-K,
      10-D or 10-K needs to be amended, and such amendment relates to any Additional
      Disclosure, the Grantor Trust Trustee shall notify the Depositor and the parties
      affected thereby and such parties will cooperate to prepare any necessary Form
      8-K/A, 10-DA or 10-KA.  Any Form 15, Form 12b-25 or any amendment to
      Form 8-K, 10-D or 10-K shall be signed by a duly authorized officer of the
      Depositor.  The parties hereto acknowledge that the performance by the
      Depositor and the Grantor Trust Trustee of their respective duties under this
      Section 3.11(a)(v) related to the timely preparation, execution and filing
      of
      Form 15, a Form 12b-25 or any amendment to Form 8-K, 10-D or 10-K is contingent
      upon the Depositor timely performing its duties under this
      Section.  The Grantor Trust Trustee shall not have any liability for
      any loss, expense, damage, claim arising out of or with respect to any failure
      to properly prepare, execute and/or timely file any such Form 15, Form 12b-25
      or
      any amendments to Form 8-K, 10-D or 10-K, where such failure results from the
      Grantor Trust Trustee’s inability or failure to receive, on a timely basis, any
      information from any other party hereto or to an Underlying Series needed to
      prepare, arrange for execution or file such Form 15, Form 12b-25 or any
      amendments to Form 8-K, 10-D or 10-K, not resulting from its own negligence,
      bad
      faith or willful misconduct.

     

    The
      Depositor agrees to promptly furnish to the Grantor Trust Trustee, from time
      to
      time upon request, such further information, reports and financial statements
      within its control related to this Agreement and the Underlying Securities
      as
      the Grantor Trust Trustee reasonably deems appropriate to prepare and file
      all
      necessary reports with the Commission. The Grantor Trust Trustee shall have
      no
      responsibility to file any items other than those specified in this Section
      3.11; provided, however, the Grantor Trust Trustee shall cooperate with the
      Depositor in connection with any additional filings with respect to the Trust
      Fund as the Depositor deems necessary under the Exchange Act.  Fees
      and expenses incurred by the Grantor Trust Trustee in connection with this
      Section 3.11 shall not be reimbursable from the Trust Fund.

     

    (b)           The
      Grantor Trust Trustee shall indemnify and hold harmless the Depositor and each
      of its officers, directors and affiliates from and against any losses, damages,
      penalties, fines, forfeitures, reasonable and necessary legal fees and related
      costs, judgments and other costs and expenses arising out of or based upon
      a
      breach of the Grantor Trust Trustee’s obligations under Sections 3.09, 3.10 and
      3.11 or the Grantor Trust Trustee’s negligence, bad faith or willful misconduct
      in connection therewith. In addition, the Grantor Trust Trustee shall indemnify
      and hold harmless the Depositor and each of its respective officers, directors
      and affiliates from and against any losses, damages, penalties, fines,
      forfeitures, reasonable and necessary legal fees and related costs, judgments
      and other costs and expenses arising out of or based upon (i) any untrue
      statement or alleged untrue statement of any material fact contained in any
      Back-Up Certification, any Annual Statement of Compliance, any Assessment of
      Compliance or any Additional Disclosure provided by the Grantor Trust Trustee
      on
      its behalf pursuant to Section 3.09, 3.10 or 3.11 (the “Grantor Trust Trustee
      Information”), or (ii) any omission or alleged omission to state therein a
      material fact required to be stated therein or necessary to make the statements
      therein, in light of the circumstances in which they were made, not misleading;
      provided, by way of clarification, that this paragraph shall be construed solely
      by reference to the Grantor Trust Trustee Information and not to any other
      information communicated in connection with the Grantor Trust Certificates,
      without regard to whether the Grantor Trust Trustee Information or any portion
      thereof is presented together with or separately from such other
      information.

     

    The
      Depositor shall indemnify and hold harmless the Grantor Trust Trustee and each
      of its officers, directors and affiliates from and against any losses, damages,
      penalties, fines, forfeitures, reasonable and necessary legal fees and related
      costs, judgments and other costs and expenses arising out of or based upon
      a
      breach of the obligations of the Depositor under Sections 3.09, 3.10 and 3.11
      or
      the Depositor’s negligence, bad faith or willful misconduct in connection
      therewith. In addition, the Depositor shall indemnify and hold harmless the
      Grantor Trust Trustee and each of its respective officers, directors and
      affiliates from and against any losses, damages, penalties, fines, forfeitures,
      reasonable and necessary legal fees and related costs, judgments and other
      costs
      and expenses arising out of or based upon (i) any untrue statement or alleged
      untrue statement of any material fact contained in any Additional Disclosure
      provided by the Depositor that is required to be filed pursuant to this Section
      3.11 (the “Depositor Information”), or (ii) any omission or alleged omission to
      state therein a material fact required to be stated therein or necessary to
      make
      the statements therein, in light of the circumstances in which they were made,
      not misleading; provided, by way of clarification, that this paragraph shall
      be
      construed solely by reference to the Depositor Information that is required
      to
      be filed and not to any other information communicated in connection with the
      Grantor Trust Certificates, without regard to whether the Depositor Information
      or any portion thereof is presented together with or separately from such other
      information.

     

    If
      the
      indemnification provided for herein is unavailable or insufficient to hold
      harmless the Depositor or the Grantor Trust Trustee, as applicable, then the
      defaulting party, in connection with any conduct for which it is providing
      indemnification under this Section 3.11(b), agrees that it shall contribute
      to
      the amount paid or payable by the other parties as a result of the losses,
      claims, damages or liabilities of the other party in such proportion as is
      appropriate to reflect the relative fault and the relative benefit of the
      respective parties.

     

    The
      indemnification provisions set forth in this Section 3.11(b) shall survive
      the
      termination of this Agreement or the termination of any party to this
      Agreement.

     

    (c)           Failure
      of the Grantor Trust Trustee to comply with this Section 3.11 (including with
      respect to the time frames required in this Section) which failure results
      in a
      failure to timely file the related Form 10-K, shall, upon written notice from
      the Depositor, constitute a default and the Depositor shall, in addition to
      whatever rights it may have under this Agreement and at law or equity or to
      damages, including injunctive relief and specific performance, upon notice
      immediately terminate all of the rights and obligations of the Grantor Trust
      Trustee under this Agreement and in and to the Underlying Securities and the
      proceeds thereof without compensating the Grantor Trust Trustee for the same
      (but subject to the Grantor Trust Trustee’s right to reimbursement of all
      amounts for which it is entitled to be reimbursed prior to the date of
      termination).  This paragraph shall supersede any other provision in
      this Agreement or any other agreement to the contrary. In connection with the
      termination of the Grantor Trust Trustee pursuant to this Section 3.11(c),
      the
      Grantor Trust Trustee shall be entitled to reimbursement of all costs and
      expenses associated with such termination.  Notwithstanding anything
      to the contrary in this Agreement, no default by the Grantor Trust Trustee
      shall
      have occurred with respect to any failure to properly prepare and/or timely
      file
      any report on Form 8-K, Form 10-D or Form 10-K, any Form 15 or Form 12b-25
      or
      any amendments to Form 8-K, 10-D or 10-K, where such failure results from the
      Grantor Trust Trustee’s inability or failure to receive, on a timely basis, any
      information from any other party hereto needed to prepare, arrange for execution
      or file any such report, Form or amendment, and does not result from its own
      negligence, bad faith or willful misconduct.

     

    (d)           This
      Section 3.11 may be amended without the consent of the Grantor Trust
      Certificateholders.

     

    (e)           Any
      report, notice or notification to be delivered by the Grantor Trust Trustee
      to
      the Depositor pursuant to this Section 3.11, may be delivered via email to
      RegABNotifications@bear.com or, in the case of a notification, telephonically
      by
      calling Reg AB Compliance Manager at (212) 272-7525.

     

    ARTICLE
      IV

     

    THE
      GRANTOR TRUST CERTIFICATES

     

    Section
      4.01.  The
      Grantor Trust Certificates.

     

    (a)  The
      Depository, the Depositor and the Grantor Trust Trustee have entered into a
      letter agreement dated as of August 31, 2007 (the “Depository
      Agreement”).  Except as provided in Subsection 4.01(b), the Grantor
      Trust Certificates shall at all times remain registered in the name of the
      Depository or its nominee and at all times:  (i) registration of such
      Grantor Trust Certificates may not be transferred by the Grantor Trust Trustee
      except to a successor to the Depository; (ii) ownership and transfers of
      registration of such Grantor Trust Certificates on the books of the Depository
      shall be governed by applicable rules established by the Depository; (iii)
      the
      Depository may collect its usual and customary fees, charges and expenses from
      its Depository Participants; (iv) the Grantor Trust Trustee shall deal with
      the
      Depository as representative of the Grantor Trust Certificate Owners for
      purposes of exercising the rights of Grantor Trust Certificateholders under
      this
      Agreement, and requests and directions for and votes of such representative
      shall not be deemed to be inconsistent if they are made with respect to
      different Grantor Trust Certificate Owners; and (v) the Grantor Trust Trustee
      may rely and shall be fully protected in relying upon information furnished
      by
      the Depository with respect to its Depository Participants.

     

    All
      transfers by Grantor Trust Certificate Owners of Grantor Trust Certificates
      shall be made in accordance with the procedures established by the Depository
      Participant or brokerage firm representing such Grantor Trust Certificate
      Owners. Each Depository Participant shall only transfer Grantor Trust
      Certificates of Grantor Trust Certificate Owners it represents or of brokerage
      firms for which it acts as agent in accordance with the Depository’s normal
      procedures.

     

    (b)  If
      (i)(A)
      the Depositor advises the Grantor Trust Trustee in writing that the Depository
      is no longer willing or able to properly discharge its responsibilities as
      Depository and (B) the Grantor Trust Trustee or the Depositor is unable to
      locate a qualified successor within 30 days or (ii) after the occurrence and
      continuation of a default hereunder, the Grantor Trust Certificate Owners of
      not
      less than 51% of the Percentage Interests of the Grantor Trust Certificates
      advise the Grantor Trust Trustee and the Depository in writing through the
      depository participants that the continuation of a book-entry system with
      respect to the Grantor Trust Certificates through the Depository (or its
      successor) is no longer in the best interests of the Grantor Trust Certificate
      Owners, then the Grantor Trust Trustee shall request that the Depository notify
      all Grantor Trust Certificate Owners of the occurrence of any such event and
      of
      the availability of definitive, fully registered Grantor Trust Certificates
      (the
“Definitive Grantor Trust Certificates”) to Grantor Trust Certificate Owners
      requesting the same.  Upon surrender to the Grantor Trust Trustee of
      the Grantor Trust Certificates by the Depository, accompanied by registration
      instructions from the Depository for registration, the Grantor Trust Trustee
      shall issue the Definitive Grantor Trust Certificates.  Neither the
      Depositor nor the Grantor Trust Trustee shall be liable for any delay in
      delivery of such instructions and may conclusively rely on, and shall be
      protected in relying on, such instructions.

     

    (c)  The
      Grantor Trust Certificates shall be substantially in the form set forth in
      Exhibit A hereto.  The Grantor Trust Certificates shall be executed by
      manual signature on behalf of the Grantor Trust Trustee in its capacity as
      Grantor Trust Trustee hereunder by an authorized officer.  Grantor
      Trust Certificates bearing the manual or facsimile signatures of individuals
      who
      were at any time the proper officers of the Grantor Trust Trustee shall be
      entitled to all benefits under this Agreement, subject to the following
      sentence, notwithstanding that such individuals or any of them have ceased
      to
      hold such offices prior to the authentication and delivery of such Grantor
      Trust
      Certificates or did not hold such offices at the date of such Grantor Trust
      Certificates.  No Grantor Trust Certificate shall be entitled to any
      benefit under this Agreement, or be valid for any purpose, unless there appears
      on such Grantor Trust Certificate a certificate of authentication substantially
      in the form provided for herein executed by the Grantor Trust Trustee by manual
      signature, and such certificate upon any Grantor Trust Certificate shall be
      conclusive evidence, and the only evidence, that such Grantor Trust Certificate
      has been duly authenticated and delivered hereunder.  All Grantor
      Trust Certificates shall be dated the date of their authentication.

     

    Pending
      the preparation of Definitive Grantor Trust Certificates, the Grantor Trust
      Trustee may sign and authenticate temporary Grantor Trust Certificates that
      are
      printed, lithographed or typewritten, in authorized denominations for Grantor
      Trust Certificates, substantially of the tenor of the Definitive Grantor Trust
      Certificates in lieu of which they are issued and with such appropriate
      insertions, omissions, substitutions and other variations as the officers or
      authorized signatories executing such Grantor Trust Certificates may determine,
      as evidenced by their execution of such Grantor Trust
      Certificates.  If temporary Grantor Trust Certificates are issued, the
      Depositor will cause Definitive Grantor Trust Certificates to be prepared
      without unreasonable delay.  After the preparation of Definitive
      Grantor Trust Certificates, the temporary Grantor Trust Certificates shall
      be
      exchangeable for Definitive Grantor Trust Certificates upon surrender of the
      temporary Grantor Trust Certificates at the office of the Grantor Trust Trustee,
      without charge to the Holder.  Upon surrender for cancellation of any
      one or more temporary Certificates, the Grantor Trust Trustee shall sign and
      the
      Certificate Registrar shall authenticate and deliver in exchange therefor a
      like
      aggregate principal amount, in authorized denominations, of Definitive Grantor
      Trust Certificates.  Until so exchanged, such temporary Grantor Trust
      Certificates shall in all respects be entitled to the same benefits as
      Definitive Grantor Trust Certificates.

     

    Each
      of
      the Grantor Trust Certificates will be initially registered as a single Grantor
      Trust Certificate held by a nominee of the Depository, and beneficial interests
      will be held by investors through the book-entry facilities of the Depository
      in
      minimum denominations of $100,000 and increments of $1 in excess
      thereof.  The Certificates shall be issued in the aggregate dollar
      denominations as set forth in the following table:

     

    
      	
              
                Class

              

            	 	
              
                Current
                  Principal
                  Amount

              

            	 
	
              I-A-1

            	 	$	
              330,443,000.00

            	 
	
              I-A-2

            	 	$	
              82,611,131.89

            	 
	
              II-A-1

            	 	$	
              160,958,000.00

            	 
	
              II-A-2

            	 	$	
              40,239,014.56

            	 

    

     

    

    Section
      4.02.  Registration
      of Transfer and Exchange of Grantor Trust Certificates.

     

    (a)  At
      all
      times during the term of this Agreement, the Grantor Trust Trustee shall
      maintain at its Corporate Trust Office a register (the “Certificate Register”)
      in which, subject to such reasonable regulations as the Grantor Trust Trustee
      may prescribe, the Certificate Register shall provide for the registration
      of
      Grantor Trust Certificates and of transfers and exchanges of Grantor Trust
      Certificates as herein provided.  The Depositor shall have the right
      to inspect the Certificate Register or to obtain a copy thereof at all
      reasonable times, and to rely conclusively upon a certificate of the Grantor
      Trust Trustee as to the information set forth in the Certificate
      Register.

     

    The
      Depositor and every Grantor Trust Certificateholder and Grantor Trust
      Certificate Owner, by receiving and holding a Grantor Trust Certificate or
      an
      interest therein,  agrees with the Grantor Trust Trustee that the
      Grantor Trust Trustee shall not be held accountable by reason of the disclosure
      of any such information as to the names and addresses of the Grantor Trust
      Certificateholders hereunder, regardless of the source from which such
      information was derived.

     

    (b)  Subject
      to the preceding subsections, upon surrender for registration of transfer of
      any
      Grantor Trust Certificate at the Corporate Trust Office of the Grantor Trust
      Trustee, the Grantor Trust Trustee shall execute, authenticate and deliver,
      in
      the name of the designated transferee or transferees, one or more new Grantor
      Trust Certificates of a like aggregate Percentage Interest.

     

    (c)  At
      the
      option of any Holder, its Grantor Trust Certificates may be exchanged for other
      Grantor Trust Certificates related to the related Sub-Trust of authorized
      denominations of a like aggregate Percentage Interest, upon surrender of the
      Grantor Trust Certificates to be exchanged at the Corporate Trust Office of
      the
      Grantor Trust Trustee.  Whenever any Grantor Trust Certificates are so
      surrendered for exchange, the Grantor Trust Trustee shall execute, authenticate
      and deliver the Grantor Trust Certificates which the Grantor Trust
      Certificateholder making the exchange is entitled to receive.

     

    (d)  Every
      Grantor Trust Certificate presented or surrendered for transfer or exchange
      shall (if so required by the Grantor Trust Trustee) be duly endorsed by, or
      be
      accompanied by a written instrument of transfer in the form satisfactory to
      the
      Grantor Trust Trustee duly executed by, the Holder thereof or his attorney
      duly
      authorized in writing, and shall further be accompanied by the information
      required to be provided to the Grantor Trust Trustee for WHFIT reporting
      purposes pursuant to Section 3.06 hereof, including the status of the proposed
      transferee as a “middleman” as defined by the WHFIT Regulations and, in the case
      of a transfer pursuant to a sale, the price, the amount of proceeds and the
      date
      of sale of such Grantor Trust Certificate or interest therein.

     

    (e)  No
      service charge shall be made for any transfer or exchange of Grantor Trust
      Certificates, but the Grantor Trust Trustee may require payment of a sum
      sufficient to cover any tax or governmental charge that may be imposed in
      connection with any transfer or exchange of Grantor Trust
      Certificates.

     

    (f)  All
      Grantor Trust Certificates surrendered for transfer and exchange shall be
      destroyed by the Grantor Trust Trustee without liability on its
      part.

     

    Section
      4.03.  Mutilated,
      Destroyed, Lost or Stolen Grantor Trust Certificates.

     

    If
      (i)
      any mutilated Grantor Trust Certificate is surrendered to the Grantor Trust
      Trustee, or the Grantor Trust Trustee receives evidence to its satisfaction
      of
      the destruction, loss or theft of any Grantor Trust Certificate, and (ii)
      (except in the case of a mutilated Grantor Trust Certificate) there is delivered
      to the Grantor Trust Trustee such agreement, security or indemnity as may be
      required by them to save each of them harmless, then, in the absence of notice
      to the Grantor Trust Trustee that such Grantor Trust Certificate has been
      acquired by a bona fide purchaser, the Grantor Trust Trustee shall execute,
      authenticate and deliver, in exchange for or in lieu of any such mutilated,
      destroyed, lost or stolen Grantor Trust Certificate, a new Grantor Trust
      Certificate of like tenor and Percentage Interest but bearing a number not
      contemporaneously outstanding.  Upon the issuance of any new Grantor
      Trust Certificate under this Section, the Grantor Trust Trustee may require
      the
      payment by the Grantor Trust Certificateholder of a sum sufficient to cover
      any
      tax or other governmental charge that may be imposed in relation
      thereto.  Any duplicate Grantor Trust Certificate issued pursuant to
      this Section shall constitute complete and indefeasible evidence of ownership
      in
      the Trust Fund, as if originally issued, whether or not the lost, stolen or
      destroyed Grantor Trust Certificate shall be found at any time.

     

    Section
      4.04.  Persons
      Deemed Owners.

     

    Prior
      to
      due presentment of a Grantor Trust Certificate for registration of transfer,
      the
      Depositor, the Grantor Trust Trustee and any agent of the Depositor or the
      Grantor Trust Trustee may treat the Person in whose name any Grantor Trust
      Certificate is registered as the owner of such Grantor Trust Certificate for
      the
      purpose of receiving distributions pursuant to Section 3.05 and for all other
      purposes whatsoever, and none of the Depositor, the Grantor Trust Trustee,
      or
      any agent of the Depositor or the Grantor Trust Trustee shall be affected by
      notice to the contrary.

     

    ARTICLE
      V

     

    THE
      GRANTOR TRUST TRUSTEE 

     

    Section
      5.01.  Duties
      of Grantor Trust Trustee.

     

    (a)  Upon
      receipt of all resolutions, certificates, statements, opinions, reports,
      documents, orders or other instruments which are specifically required to be
      furnished to the Grantor Trust Trustee pursuant to any provision of this
      Agreement, the Grantor Trust Trustee shall examine them to determine whether
      they are in the form required by this Agreement and the related Underlying
      Agreement; provided, however, that the Grantor Trust Trustee shall not be
      responsible for the accuracy or content of any resolution, certificate,
      statement, opinion, report, document, order or other instrument furnished
      hereunder; provided, further, that the Grantor Trust Trustee shall not be
      responsible for the accuracy or verification of any calculation provided to
      it
      pursuant to this Agreement.  The Grantor Trust Trustee shall notify
      the Grantor Trust Certificateholders and the Rating Agencies of any such
      documents which do not materially conform to the requirements of this Agreement
      in the event that the Grantor Trust Trustee, after so requesting of the party
      required to deliver the same, does not receive satisfactorily corrected
      documents or a satisfactory explanation regarding any such
      nonconformities.

     

    The
      Grantor Trust Trustee shall forward or cause to be forwarded or make available,
      as applicable, in a timely fashion the notices, reports and statements required
      to be forwarded by the Grantor Trust Trustee pursuant to Sections 3.01, 3.02,
      3.06 and 7.01.

     

    (b)  No
      provision of this Agreement shall be construed to relieve the Grantor Trust
      Trustee from liability for its own negligent action, its own negligent failure
      to act or its own willful misconduct; provided, however, that:

     

    (i)  The
      duties and obligations of the Grantor Trust Trustee shall be determined solely
      by the express provisions of this Agreement, the Grantor Trust Trustee shall
      not
      be liable except for the performance of its duties and obligations as are
      specifically set forth in this Agreement, no implied covenants or obligations
      shall be read into this Agreement against the Grantor Trust Trustee and, in
      the
      absence of bad faith on the part of the Grantor Trust Trustee, the Grantor
      Trust
      Trustee may conclusively rely, as to the truth of the statements and the
      correctness of the opinions expressed therein, upon any certificates or opinions
      furnished to the Grantor Trust Trustee and conforming to the requirements of
      this Agreement;

     

    (ii)  The
      Grantor Trust Trustee shall not be liable in its individual capacity for an
      error of judgment made in good faith by a Responsible Officer or Responsible
      Officers of the Grantor Trust Trustee unless it shall be proved that the Grantor
      Trust Trustee was negligent in ascertaining the pertinent facts;

     

    (iii)  The
      Grantor Trust Trustee shall not be liable with respect to any action taken,
      suffered or omitted to be taken by it in good faith in accordance with the
      direction of the Majority Grantor Trust Certificateholders in accordance with
      the terms of this Agreement, as to the time, method and place of conducting
      any
      proceeding for any remedy available to the Grantor Trust Trustee, or exercising
      any trust or other power conferred upon the Grantor Trust Trustee under this
      Agreement;

     

    (iv)  The
      Grantor Trust Trustee shall not in any way be liable by reason of any
      insufficiency in any Account held by or in the name of Grantor Trust Trustee
      unless it is determined by a court of competent jurisdiction that the Grantor
      Trust Trustee’s gross negligence or willful misconduct was the primary cause of
      such insufficiency (except to the extent that the Grantor Trust Trustee is
      obligor and has defaulted thereon);

     

    (v)  Anything
      in this Agreement to the contrary notwithstanding, in no event shall the Grantor
      Trust Trustee be liable for special, indirect or consequential loss or damage
      of
      any kind whatsoever (including but not limited to lost profits), even if the
      Grantor Trust Trustee has been advised of the likelihood of such loss or damage
      and regardless of the form of action;

     

    (vi)  Neither
      the Depositor nor the Grantor Trust Trustee shall be responsible for the acts
      or
      omissions of the other, it being understood that this Agreement shall not be
      construed to render them partners, joint venturers or agents of one
      another;

     

    (vii)  The
      Grantor Trust Trustee shall not be required to expend or risk its own funds
      or
      otherwise incur financial liability in the performance of any of its duties
      hereunder, or in the exercise of any of its rights or powers, if there is
      reasonable ground for believing that the repayment of such funds or adequate
      indemnity against such risk or liability is not reasonably assured to it;
      provided that this provision shall not be deemed to abrogate the
      responsibilities undertaken by the Grantor Trust Trustee hereunder to perform
      routine administrative duties in accordance with the terms of this
      Agreement;

     

    (viii)  The
      Grantor Trust Trustee shall not be deemed to have notice of any fact or
      circumstance upon the occurrence of which it may be required to take action
      hereunder unless a Responsible Officer of the Grantor Trust Trustee has actual
      knowledge of such event, fact or circumstance or unless written notice of any
      such event is received by the Grantor Trust Trustee at its Corporate Trust
      Office;

     

    (ix)  No
      provision in this Agreement shall require the Grantor Trust Trustee to expend
      or
      risk its own funds or otherwise incur any personal financial liability in the
      performance of any of its duties as Grantor Trust Trustee hereunder, or in
      the
      exercise of any of its rights or powers, if the Grantor Trust Trustee shall
      have
      reasonable grounds for believing that repayment of funds or adequate indemnity
      against such risk or liability is not reasonably assured to it; provided that
      this provision shall not be deemed to abrogate the responsibilities undertaken
      by the Grantor Trust Trustee hereunder to perform routine administrative duties
      in accordance with the terms hereof; and

     

    (x)  Except
      for those actions that the Grantor Trust Trustee is required to take hereunder,
      the Grantor Trust Trustee shall not have any obligation or liability to take
      any
      action or to refrain from taking any action hereunder in the absence of written
      direction as provided hereunder.

     

    Section
      5.02.  Certain
      Matters Affecting the Grantor Trust Trustee.

     

    Except
      as
      otherwise provided in Section 5.01:

     

    (i)  The
      Grantor Trust Trustee may rely and shall be protected in acting or refraining
      from acting in reliance on any resolution, Officer’s Certificate, certificate of
      auditors or any other certificate, statement, instrument, opinion, report,
      notice, request, consent, order, appraisal, bond or other paper or document
      believed by it to be genuine and to have been signed or presented by the proper
      party or parties;

     

    (ii)  The
      Grantor Trust Trustee may consult with counsel and any advice of such counsel
      or
      any Opinion of Counsel shall be full and complete authorization and protection
      with respect to any action taken or suffered or omitted by it hereunder in
      good
      faith and in accordance with such advice or Opinion of Counsel;

     

    (iii)  The
      Grantor Trust Trustee shall not be under any obligation to exercise any of
      the
      trusts or powers vested in it by this Agreement, other than its obligation
      to
      give notices pursuant to this Agreement, or to institute, conduct or defend
      any
      litigation hereunder or in relation hereto at the request, order or direction
      of
      any of the Grantor Trust Certificateholders with respect to any related
      Sub-Trust, pursuant to the provisions of this Agreement, unless such Grantor
      Trust Certificateholders shall have offered to the Grantor Trust Trustee
      reasonable security or indemnity against the costs, expenses and liabilities
      which may be incurred therein or thereby;

     

    (iv)  The
      Grantor Trust Trustee shall not be liable in its individual capacity for any action taken, suffered
      or
      omitted by it in good faith and believed by it to be authorized or within the
      discretion or rights or powers conferred upon it by this
      Agreement;

     

    (v)  The
      Grantor Trust Trustee shall not be bound to make any investigation into the
      facts or matters stated in any resolution, certificate, statement, instrument,
      opinion, report, notice, request, consent, order, approval, bond or other paper
      or document, but the Grantor Trust Trustee, in its discretion, may make such
      further inquiry or investigation into such facts or matters as it may see fit,
      and, if the Grantor Trust Trustee shall determine to make such further inquiry
      or investigation, it shall be entitled to the extent reasonable under the
      circumstances to examine the books, records and premises of such Person,
      personally or by agent or attorney;

     

    (vi)  The
      Grantor Trust Trustee may execute any of the trusts or powers hereunder or
      perform any duties hereunder either directly or by or through agents or
      attorneys and shall not be liable for the default or misconduct of any such
      agents or attorneys if selected with reasonable care; and

     

    (vii)  The
      right
      of the Grantor Trust Trustee to perform any discretionary act enumerated in
      this
      Agreement shall not be construed as a duty, and the Grantor Trust Trustee shall
      not be accountable for other than its negligence or willful misconduct in the
      performance of any such act.

     

    Section
      5.03.  Grantor
      Trust Trustee Not Liable for Grantor Trust Certificates or Underlying
      Securities.

     

    The
      recitals contained herein and in the Grantor Trust Certificates (other than
      the
      statements attributed to, and the representations and warranties of, the Grantor
      Trust Trustee in Article II and the signature and countersignature of the
      Certificate Registrar on the Grantor Trust Certificates) shall be taken as
      the
      statements of the Depositor, and the Grantor Trust Trustee shall not have any
      responsibility for their correctness. The Grantor Trust Trustee does not makes
      any representation as to the validity or sufficiency of this Agreement (other
      than as specifically set forth in Section 2.03(b)) or of the Grantor Trust
      Certificates (other than that the Grantor Trust Certificates shall be duly
      and
      validly executed and authenticated by it) or of the Underlying Securities or
      any
      related document.  Except as otherwise provided herein, the Grantor
      Trust Trustee shall not be accountable for the use or application by the
      Depositor of any of the Grantor Trust Certificates or of the proceeds of such
      Grantor Trust Certificates, or for the use or application of any funds paid
      to
      the Depositor in respect of the assignment and delivery of the Underlying
      Securities.

     

    Section
      5.04.  Grantor
      Trust Trustee May Own Grantor Trust Certificates.

     

    The
      Grantor Trust Trustee in its individual capacity or in any capacity other than
      as Grantor Trust Trustee hereunder may become the owner or pledgee of any
      Grantor Trust Certificates with the same rights it would have if it were not
      Grantor Trust Trustee and may otherwise deal with the parties
      hereto.

     

    Section
      5.05.  Grantor
      Trust Trustee’s Fees and Expenses.

     

    (a)  The
      Grantor Trust Trustee shall be reimbursed for all expenses and fees incurred
      in
      connection with this agreement by Bear, Stearns.

     

    (b)  The
      Grantor Trust Trustee and any director, officer, employee or agent of the
      Grantor Trust Trustee shall be entitled to be indemnified and held harmless
      by
      Bear, Stearns against any loss, liability or expense (including, without
      limitation, costs and expenses of litigation, and of investigation, counsel
      fees
      and expenses, damages, judgments, amounts paid in settlement and out-of-pocket
      expenses) arising out of, or incurred in connection with this Agreement, the
      Underlying Agreements, the Underlying Securities and the Grantor Trust
      Certificates, the exercise and performance of any of the powers and duties
      of
      the Grantor Trust Trustee hereunder or thereunder; provided that neither the
      Grantor Trust Trustee nor any of the other above specified Persons shall be
      entitled to indemnification pursuant to this Section 5.05(b) for any loss,
      liability or expense incurred by reason of willful misfeasance, bad faith or
      negligence in the performance of the Grantor Trust Trustee’s obligations and
      duties hereunder, or by reason of reckless disregard of such obligations or
      duties.

     

    The
      provisions of this Section 5.05 shall survive any resignation or removal of
      the
      Grantor Trust Trustee and appointment of a successor Grantor Trust
      Trustee.

     

    Section
      5.06.  Eligibility
      Requirements for Grantor Trust Trustee.

     

    The
      Grantor Trust Trustee and any successor Grantor Trust Trustee shall during
      the
      entire duration of this Agreement be a state bank or trust company or a national
      banking association organized and doing business under the laws of such state
      or
      the United States of America, authorized under such laws to exercise corporate
      trust powers, having a combined capital, and surplus and undivided profits
      of at
      least $50,000,000 (or shall be a member of a bank holding system, the combined
      capital and surplus of which is at least $50,000,000) and subject to supervision
      or examination by federal or state authority. If the Grantor Trust Trustee
      publishes reports of condition at least annually, pursuant to law or to the
      requirements of the aforesaid supervising or examining authority, then for
      the
      purposes of this Section the combined capital and surplus of such corporation
      shall be deemed to be its total equity capital (combined capital and surplus)
      as
      set forth in its most recent report of condition so published.  The
      Grantor Trust Trustee shall at all times meet the requirements of Section
      26(a)(1) of the Investment Company Act and shall in no event be an Affiliate
      of
      the Depositor or of any Person involved in the organization or operation of
      the
      Depositor.   In case at any time the Grantor Trust Trustee shall
      cease to be eligible in accordance with the provisions of this Section, the
      Grantor Trust Trustee shall resign immediately in the manner and with the effect
      specified in Section 5.07.

     

    Section
      5.07.  Resignation
      and Removal of the Grantor Trust Trustee.

     

    (a)  The
      Grantor Trust Trustee may at any time resign and be discharged from the Trust
      hereby created by giving written notice thereof to the Depositor and the Grantor
      Trust Certificateholders. Upon receiving such notice of resignation, the
      Depositor shall promptly appoint a successor Grantor Trust Trustee by written
      instrument, in duplicate, one copy of which instrument shall be delivered to
      each of the resigning Grantor Trust Trustee and the successor Grantor Trust
      Trustee. If no successor Grantor Trust Trustee shall have been so appointed
      and
      have accepted appointment within 30 days after the giving of such notice of
      resignation, the resigning Grantor Trust Trustee may petition any court of
      competent jurisdiction for the appointment of a successor Grantor Trust
      Trustee.

     

    (b)  If
      at any
      time the Grantor Trust Trustee shall cease to be eligible in accordance with
      the
      provisions of Section 5.06 and shall fail to resign after written request
      therefor by the Depositor or the Majority Grantor Trust Certificateholders,
      or
      if at any time the Grantor Trust Trustee shall become incapable of acting,
      or
      shall be adjudged a bankrupt or insolvent, or a receiver of the Grantor Trust
      Trustee or of its property shall be appointed, or any public officer shall
      take
      charge or control of the Grantor Trust Trustee or of its property or affairs
      for
      the purpose of rehabilitation, conservation or liquidation, then the Depositor
      shall promptly remove the Grantor Trust Trustee and appoint a successor Grantor
      Trust Trustee by written instrument, in duplicate, one copy of which instrument
      shall be delivered to each of the Grantor Trust Trustee so removed and one
      copy
      to the successor Grantor Trust Trustee.

     

    (c)  Majority
      Grantor Trust Certificateholders may at any time remove the Grantor Trust
      Trustee and appoint a successor Grantor Trust Trustee by written instrument
      or
      instruments, in quadruplicate, signed by such Holders or their attorneys-in-fact
      duly authorized, one complete set of which instruments shall be delivered to
      the
      Depositor, the Grantor Trust Trustee so removed and the successor so
      appointed.  A copy of such instrument shall be delivered to the
      Grantor Trust Certificateholders by the Depositor.  All reasonable
      out-of-pocket costs and expenses incurred in connection with such removal and
      replacement of the Grantor Trust Trustee, including without limitation,
      reasonable attorneys fees and expenses, shall be borne by the party requesting
      such action.

     

    (d)  No
      resignation or removal of the Grantor Trust Trustee and appointment of a
      successor Grantor Trust Trustee pursuant to any of the provisions of this
      Section shall become effective except upon appointment of and acceptance of
      such
      appointment by the successor Grantor Trust Trustee as provided in Section 5.08
      and (ii) no entity may be appointed as a successor Grantor Trust Trustee if
      such
      appointment would result in a withdrawal or downgrading of any then current
      rating assigned to the Grantor Trust Certificates by the Rating
      Agencies.

     

    Section
      5.08.  Successor
      Grantor Trust Trustee.

     

    (a)  Any
      successor Grantor Trust Trustee appointed as provided in Section 5.07 shall
      execute, acknowledge and deliver to the Depositor, the Grantor Trust
      Certificateholders and to its predecessor Grantor Trust Trustee an instrument
      accepting such appointment hereunder. The resignation or removal of the
      predecessor Grantor Trust Trustee shall then become effective and such successor
      Grantor Trust Trustee, without any further act, deed or conveyance, shall become
      fully vested with all the rights, powers, duties and obligations of its
      predecessor hereunder, with like effect as if originally named as Grantor Trust
      Trustee o herein.  The predecessor Grantor Trust Trustee shall after
      payment of its outstanding fees and expenses promptly deliver to the successor
      Grantor Trust Trustee the Underlying Securities and related documents and
      statements held by it hereunder, and the Depositor and the predecessor Grantor
      Trust Trustee shall execute and deliver such instruments and do such other
      things as may reasonably be required for more fully and certainly vesting and
      confirming in the successor Grantor Trust Trustee all such rights, powers,
      duties and obligations.

     

    (b)  No
      successor Grantor Trust Trustee shall accept appointment as provided in this
      Section unless at the time of such acceptance such successor Grantor Trust
      Trustee shall be eligible under the provisions of Section 5.06.

     

    (c)  Upon
      acceptance of appointment by a successor Grantor Trust Trustee as provided
      in
      this Section, the successor Grantor Trust Trustee shall mail notice of the
      succession of such Grantor Trust Trustee hereunder to all Grantor Trust
      Certificateholders at their addresses as shown in the Certificate Register
      and
      to the Rating Agencies.  The Depositor shall cause such notice to be
      mailed at the expense of the Depositor.

     

    (d)  Notwithstanding
      anything in this Agreement or the Underlying Agreements to the contrary, in
      the
      event that the paying agent for the Underlying Series resigns or is terminated,
      the Grantor Trust Trustee (if it was such paying agent) shall resign as Grantor
      Trust Trustee under this Agreement and the Depositor may appoint the successor
      paying agent as the successor to the Grantor Trust Trustee
      hereunder.

     

    Section
      5.09.  Merger
      or Consolidation of Grantor Trust Trustee.

     

    Any
      state
      bank or trust company or national banking association into which the Grantor
      Trust Trustee may be merged or converted or with which it may be consolidated
      or
      any state bank or trust company or national banking association resulting from
      any merger, conversion or consolidation to which the Grantor Trust Trustee
      shall
      be a party, or any state bank or trust company or national banking association
      succeeding to all or substantially all of the corporate trust business of the
      Grantor Trust Trusteeshall be the successor of the Grantor Trust Trustee
      hereunder, provided such state bank or trust company or national banking
      association shall be eligible under the provisions of Section 5.06. Such
      succession shall be valid without the execution or filing of any paper or any
      further act on the part of any of the parties hereto, anything herein to the
      contrary notwithstanding.  The Grantor Trust Trustee shall mail notice
      of any such merger or consolidation to the Depositor and to the Grantor Trust
      Certificateholders at their address as shown in the Certificate
      Register.

     

    Section
      5.10.  Appointment
      of Co-Grantor Trust Trustee or Separate Grantor Trust Trustee.

     

    (a)  Notwithstanding
      any other provisions hereof, at any time, for the purpose of meeting any legal
      requirements of any jurisdiction in which any part of the Trust or property
      constituting the same may at the time be located, the Depositor and the Grantor
      Trust Trustee acting jointly shall have the power and shall execute and deliver
      all instruments to appoint one or more Persons approved by the Grantor Trust
      Trustee and the Depositor to act as co-Grantor Trust Trustee or co-Grantor
      Trust
      Trustees, jointly with the Grantor Trust Trustee, or separate Grantor Trust
      Trustee or separate Grantor Trust Trustees, of all or any part of the Trust,
      and
      to vest in such Person or Persons, in such capacity, such title to the Trust,
      or
      any part thereof, and, subject to the other provisions of this Section 5.10,
      such powers, duties, obligations, rights and trusts as the Depositor and the
      Grantor Trust Trustee may consider necessary or desirable.  No
      co-Grantor Trust Trustee or separate Grantor Trust Trustee hereunder shall
      be
      required to meet the terms of eligibility as a successor Grantor Trust Trustee
      under Section 5.06 hereunder; provided, that if the co-Grantor Trust Trustee
      or
      separate Grantor Trust Trustee does not meet such eligibility standards, the
      Grantor Trust Trustee shall remain liable for its actions hereunder, and no
      notice to Grantor Trust Certificateholders of the appointment of co-Grantor
      Trust Trustee(s) or separate Grantor Trust Trustee(s) shall be required under
      Section 5.08 hereof.

     

    (b)  If
      the
      Depositor shall not have joined in such appointment within 15 days after the
      receipt by it of a written request so to do, the Grantor Trust Trustee shall
      have the power to make such appointment without the Depositor.

     

    (c)  In
      the
      case of any appointment of a co-Grantor Trust Trustee or separate Grantor Trust
      Trustee pursuant to this Section 5.10, all rights, powers, duties and
      obligations conferred or imposed upon the Grantor Trust Trustee and required
      to
      be conferred on such co-Grantor Trust Trustee shall be conferred or imposed
      upon
      and exercised or performed jointly by the Grantor Trust Trustee and such
      separate Grantor Trust Trustee or co-Grantor Trust Trustee jointly, except
      to
      the extent that under any law of any jurisdiction in which any particular act
      or
      acts are to be performed (whether as Grantor Trust Trustee hereunder or as
      successor to the Master Servicer hereunder), the Grantor Trust Trustee shall
      be
      incompetent or unqualified to perform such act or acts, in which event such
      rights, powers, duties and obligations (including the holding of title to the
      Trust Fund or any portion thereof in any such jurisdiction) shall be exercised
      and performed by such separate Grantor Trust Trustee or co-Grantor Trust Trustee
      at the direction of the Grantor Trust Trustee.

     

    (d)  Any
      notice, request or other writing
      given to the Grantor Trust Trustee shall be deemed to have been given to each
      of
      the then separate Grantor Trust Trustees and co-Grantor Trust Trustees, as
      effectively as if given to each of them. Every instrument appointing
      any separate
      Grantor Trust Trustee or co-Grantor Trust Trustee shall refer to this Agreement
      and the conditions of this Article V.
Each
      separate Grantor Trust Trustee and
      co-Grantor Trust Trustee, upon its acceptance of the trusts conferred, shall
      be
      vested with the estates or property specified in its instrument of appointment,
      either jointly with the Grantor Trust Trustee or separately, as may be provided
      therein, subject to all the provisions of this Agreement, specifically including
      every provision of this Agreement relating to the conduct of, affecting the
      liability of, or affording protection to, the Grantor Trust Trustee.
Every such instrument
      shall
      be filed with the Grantor Trust Trustee.

     

    (e)  To
      the
      extent not prohibited by law, any separate Grantor Trust Trustee or co-Grantor
      Trust Trustee may, at any time, request the Grantor Trust Trustee, its agent
      or
      attorney-in-fact, with full power and authority, to do any lawful act under
      or
      with respect to this Agreement on its behalf and in its name.  If any
      separate Grantor Trust Trustee or co-Grantor Trust Trustee shall die, become
      incapable of acting, resign or be removed, all of its estates, properties,
      rights, remedies and trusts shall vest in and be exercised by the Grantor Trust
      Trustee, to the extent permitted by law, without the appointment of a new or
      successor Grantor Trust Trustee.

     

    (f)  No
      Grantor Trust Trustee under this Agreement shall be personally liable by reason
      of any act or omission of another Grantor Trust Trustee under this Agreement.
      The Depositor and the Grantor Trust Trustee acting jointly may at any time
      accept the resignation of or remove any separate Grantor Trust Trustee or
      co-Grantor Trust Trustee.

     

    ARTICLE
      VI

     

    THE
      DEPOSITOR

     

    Section
      6.01.  Liability
      of the Depositor.

     

    The
      Depositor shall be liable in accordance herewith only to the extent of the
      respective obligations specifically imposed upon and undertaken by the Depositor
      herein.

     

    Section
      6.02.  Merger,
      Consolidation or Conversion of the Depositor.

     

    Subject
      to the following paragraph, the Depositor will keep in full effect its
      existence, rights and franchises as a corporation under the laws of the
      jurisdiction of its incorporation, and will obtain and preserve its
      qualification to do business as a foreign corporation in each jurisdiction
      in
      which such qualification is or shall be necessary to protect the validity and
      enforceability of this Agreement and the Grantor Trust Certificates and to
      perform its duties under this Agreement.

     

    The
      Depositor may be merged or consolidated with or into any Person, or transfer
      all
      or substantially all of its assets to any Person, in which case any Person
      resulting from any merger or consolidation to which the Depositor shall be
      a
      party, or any Person succeeding to the business of the Depositor, shall be
      the
      successor of the Depositor hereunder, without the execution or filing of any
      paper or any further act on the part of any of the parties hereto, anything
      herein to the contrary notwithstanding.

     

    Section
      6.03.  Limitation
      on Liability of the Depositor and Others.

     

    Neither
      the Depositor nor any of the directors, officers, employees or agents of the
      Depositor shall be under any liability to the Trust Fund or the Grantor Trust
      Certificateholders for any action taken or for refraining from the taking of
      any
      action in good faith pursuant to this Agreement, or for errors in judgment;
      provided, however, that this provision shall not protect the
      Depositor or any such other Person against any breach of a representation or
      warranty made herein, or against any expense or liability specifically required
      to be borne thereby pursuant to the terms hereof, or against any liability
      which
      would otherwise be imposed by reason of willful misfeasance, bad faith or
      negligence in the performance of obligations or duties hereunder, or by reason
      of reckless disregard of such obligations and duties.  The Depositor
      and any director, officer, employee or agent of the Depositor may rely in good
      faith on any document of any kind which, primafacie, is properly
      executed and submitted by any Person respecting any matters arising
      hereunder.  Provided that such action is not related to its
      representations made in or its duties under this Agreement, the Depositor shall
      not be under any obligation to appear in, prosecute or defend any action or
      proceeding unless such action in its opinion does not involve it in any expense
      or liability.

     

    ARTICLE
      VII

     

    TERMINATION

     

    Section
      7.01.  Termination.

     

    (a)  The
      respective obligations and responsibilities of the Depositor and the Grantor
      Trust Trustee created hereby with respect to the Group I Sub-Trust (other than
      the obligation to make certain payments and to send certain notices to the
      related Grantor Trust Certificateholders as hereinafter set forth) shall
      terminate upon the later of (i) the making of the final payment on or other
      liquidation of the Group I Underlying Securities and (ii) the payment to the
      related Grantor Trust Certificateholders of all amounts required to be paid
      to
      them pursuant to this Agreement; provided, however, that in no
      event shall the Group I Sub-Trust created hereby continue beyond the expiration
      of twenty-one years from the death of the last survivor of the descendants
      of
      Joseph P. Kennedy, the late ambassador of the United States to the Court of
      St.
      James’s, living on the date hereof.

     

    (b)  The
      Grantor Trust Trustee shall, in accordance with Section 8.05, give a Notice
      of
      Final Distribution to the related Holders, the Depositor and the Rating Agencies
      as soon as practicable of the Distribution Date on which the Grantor Trust
      Trustee anticipates that the final distribution will be made on the Group I
      Grantor Trust Certificates, which notice shall:

     

    (i)  specify
      the Distribution Date on which the final distribution is anticipated to be
      made
      to such Holders;

     

    (ii)  specify
      the amount of any such final distribution, if known; and

     

    (iii)  state
      that the final distribution to such Holders will be made only upon presentment
      and surrender of their Grantor Trust Certificates at the office of the Grantor
      Trust Trustee therein specified.

     

    If
      the
      payment on the Group I Grantor Trust Certificates is not made on the anticipated
      Distribution Date for any reason, the Grantor Trust Trustee shall promptly
      mail
      notice thereof to each such Holder, the Depositor and to the Rating
      Agencies.

     

    (c)  The
      respective obligations and responsibilities of the Depositor, the Grantor Trust
      Trustee created hereby with respect to the Group II Sub-Trust (other than the
      obligation to make certain payments and to send certain notices to the related
      Grantor Trust Certificateholders as hereinafter set forth) shall terminate
      upon
      the later of (i) the making of the final payment on or other liquidation of
      the
      Group II Underlying Securities and (ii) the payment to the related Grantor
      Trust
      Certificateholders of all amounts required to be paid to them pursuant to this
      Agreement; provided, however, that in no event shall the Group II
      Sub-Trust created hereby continue beyond the expiration of twenty-one years
      from
      the death of the last survivor of the descendants of Joseph P. Kennedy, the
      late
      ambassador of the United States to the Court of St. James’s, living on the date
      hereof.

     

    (d)  The
      Grantor Trust Trustee shall, in accordance with Section 8.05, give a Notice
      of
      Final Distribution to the related Holders, the Depositor and the Rating Agencies
      as soon as practicable of the Distribution Date on which the Grantor Trust
      Trustee anticipates that the final distribution will be made on the Group II
      Grantor Trust Certificates, which notice shall:

     

    (i)  specify
      the Distribution Date on which the final distribution is anticipated to be
      made
      to such Holders;

     

    (ii)  specify
      the amount of any such final distribution, if known; and

     

    (iii)  state
      that the final distribution to such Holders will be made only upon presentment
      and surrender of their Grantor Trust Certificates at the office of the Grantor
      Trust Trustee therein specified.

     

    If
      the
      payment on the Group II Grantor Trust Certificates is not made on the
      anticipated Distribution Date for any reason, the Grantor Trust Trustee shall
      promptly mail notice thereof to each such Holder, the Depositor and to the
      Rating Agencies.

     

    (e)  Upon
      presentment and surrender of any Grantor Trust Certificates by the Holders
      of
      such Grantor Trust Certificates on the related Final Distribution Date, the
      Grantor Trust Trustee shall distribute to such Grantor Trust Certificateholders
      the amounts otherwise distributable to them on such Distribution Date pursuant
      to Section 3.05(a) or Section 3.05(b).  Any funds not distributed on a
      Final Distribution Date because of the failure of any Grantor Trust
      Certificateholders to tender their Grantor Trust Certificates shall be set
      aside
      and held in trust for the account of the appropriate non-tendering Grantor
      Trust
      Certificateholders, and the related Sub-Trust shall terminate.  If any
      Grantor Trust Certificates as to which Notice of Final Distribution has been
      given pursuant to this Section 7.01 shall not have been surrendered for
      cancellation within six months after the time specified in such notice, the
      Grantor Trust Trustee shall mail a second notice to the remaining Grantor Trust
      Certificateholders related to such Sub-Trust, at their last addresses shown
      in
      the Certificate Register, to surrender their Grantor Trust Certificates for
      cancellation in order to receive, from such funds held, the final distribution
      with respect thereto.  If within one year after the second notice any
      Grantor Trust Certificate shall not have been surrendered for cancellation,
      the
      Grantor Trust Trustee shall directly or through an agent, take reasonable steps
      to contact the remaining Grantor Trust Certificateholders related to such
      Sub-Trust concerning surrender of their Grantor Trust Certificates. The costs
      and expenses of maintaining such funds and of contacting Grantor Trust
      Certificateholders shall be paid out of the assets related to such
      Sub-Trust.  If within two years after the second notice any Grantor
      Trust Certificates shall not have been surrendered for cancellation, the Grantor
      Trust Trustee shall segregate all amounts distributable to the related Holders
      thereof and shall thereafter hold such amounts for the benefit of such Holders.
      No interest shall accrue or be payable to any Grantor Trust Certificateholder
      on
      any amount held as a result of such Grantor Trust Certificateholder’s failure to
      surrender its Grantor Trust Certificate(s) for final payment thereof in
      accordance with this Section 7.01.

     

    ARTICLE
      VIII

     

    MISCELLANEOUS
      PROVISIONS

     

    Section
      8.01.  Amendment.

     

    (a)  This
      Agreement may be amended from time to time by the Depositor,
      the  Grantor Trust Trustee, without the prior consent of any Grantor
      Trust Certificateholder:

     

    (i)  to
      cure
      any ambiguity;

     

    (ii)  to
      correct or supplement any provisions herein, which may be inconsistent with
      any
      other provisions herein;

     

    (iii)  to
      make
      any other provisions with respect to matters or questions arising under this
      Agreement which shall not be materially inconsistent with the existing
      provisions of this Agreement; and

     

    (iv)  to
      make
      such modifications as may be permitted or required hereunder in connection
      with
      a repurchase of any Underlying Security pursuant to Section 2.03(c)
      hereof;

     

    provided
      that such amendment shall not, as evidenced by an Opinion of Counsel delivered
      to the Grantor Trust Trustee or a letter from each Rating Agency confirming
      that
      such amendment shall not result in a downgrade or withdrawal of a rating on
      any
      of the Grantor Trust Certificates (in each case, the expense of which shall
      be
      paid for by the Depositor), adversely affect in any material respect the
      interests of any Grantor Trust Certificateholder.

     

    (b)  This
      Agreement may also be amended from time to time by the Depositor and the Grantor
      Trust Trustee with respect to a Sub-Trust with the prior written consent of
      the
      Majority Grantor Trust Certificateholder related to such Sub-Trust for the
      purpose of adding any provisions to or changing in any manner or eliminating
      any
      of the provisions of this Agreement with respect to such Sub-Trust or of
      modifying in any manner the rights of the related Grantor Trust
      Certificateholders; provided, however, that no such amendment
      shall:

     

    (i)  reduce
      in
      any manner the amount of, or delay the timing of, payments which are required
      to
      be distributed on any related Grantor Trust Certificate without the consent
      of
      the Holder of such Grantor Trust Certificate; or

     

    (ii)  modify
      the provisions of this Section 8.01 with respect to a Sub-Trust without the
      consent of the Holders of all related Grantor Trust Certificates.

     

    Notwithstanding
      any other provision of this Agreement, for the purposes of the giving or
      withholding of consents pursuant to this Section 8.01(b), Grantor Trust
      Certificates registered in the name of, or held for the benefit of, the
      Depositor or any Affiliate thereof shall be entitled to vote their Percentage
      Interests with respect to matters affecting such Grantor Trust
      Certificates.

     

    (c)  Promptly
      after the execution of any such amendment the Grantor Trust Trustee shall
      furnish written notification of the substance of such amendment to each related
      Grantor Trust Certificateholder.  It shall not be necessary for the
      consent of the related Grantor Trust Certificateholders under this Section
      8.01
      to approve the particular form of any proposed amendment, but it shall be
      sufficient if such consent shall approve the substance thereof.  The
      manner of obtaining such consents and of evidencing the authorization of the
      execution thereof by the related Grantor Trust Certificateholders shall be
      subject to such reasonable regulations as the Grantor Trust Trustee may
      prescribe.

     

    (d)  Notwithstanding
      any contrary provision of this Agreement, the Grantor Trust Trustee shall not
      consent to any amendment to this Agreement unless it shall have first received
      an Opinion of Counsel (at the expense of the party seeking such amendment)
      to
      the effect that such amendment or the exercise of any power granted to the
      Depositor or the Grantor Trust Trustee in accordance with such amendment (i)
      is
      authorized or permitted by the Agreement and (ii) will not result in the
      imposition of a tax on the Trust or cause the Trust to fail to be classified
      as
      a grantor trust under subpart E, part I of subchapter J of chapter 1 of the
      Code.

     

    Section
      8.02.  Counterparts.

     

    This
      Agreement may be executed simultaneously in any number of counterparts, each
      of
      which counterparts shall be deemed to be an original, and such counterparts
      shall constitute but one and the same instrument.

     

    Section
      8.03.  Limitation
      on Rights of Grantor Trust Certificateholders.

     

    (a)  The
      death
      or incapacity of any Grantor Trust Certificateholder shall not operate to
      terminate this Agreement or the related Sub-Trust, nor entitle such Grantor
      Trust Certificateholder’s legal representatives or heirs to claim an accounting
      or to take any action or proceeding in any court for a partition or winding
      up
      of the related Sub-Trust, nor otherwise affect the rights, obligations and
      liabilities of the parties hereto or any of them.

     

    (b)  No
      Grantor Trust Certificateholder shall have any right to vote (except as
      expressly provided for herein) or in any manner otherwise control the operation
      and management of the Trust Fund, or the obligations of the parties hereto,
      nor
      shall anything herein set forth, or contained in the terms of the Grantor Trust
      Certificates, be construed so as to constitute the Grantor Trust
      Certificateholders from time to time as partners or members of an association;
      nor shall any Grantor Trust Certificateholder be under any liability to any
      third party by reason of any action taken by the parties to this Agreement
      pursuant to any provision hereof.

     

    (c)  No
      Grantor Trust Certificateholder shall have any right by virtue of any provision
      of this Agreement to institute any suit, action or proceeding in equity or
      at
      law upon or under or with respect to this Agreement or the related Sub-Trust,
      unless such Holder previously shall have given to the Grantor Trust Trustee
      and
      the Depositor a written notice of default hereunder, and of the continuance
      thereof, as hereinbefore provided, and unless also the related Majority Grantor
      Trust Certificateholder shall have made written request upon the Grantor Trust
      Trustee to institute such action, suit or proceeding in its own name as Grantor
      Trust Trustee hereunder and shall have offered to the Grantor Trust Trustee
      such
      reasonable indemnity as it may require against the costs, expenses and
      liabilities to be incurred therein or thereby, and the Grantor Trust Trustee,
      for 30 days after its receipt of such notice, request and offer of indemnity,
      shall have neglected or refused to institute any such action, suit or
      proceeding.  For the prosecution and enforcement of the rights granted
      under this Section, each and every Grantor Trust Certificateholder and the
      Grantor Trust Trustee shall be entitled to such relief as can be given either
      at
      law or in equity.

     

    Section
      8.04.  Governing Law.

     

    This
      Agreement and the Grantor Trust Certificates shall be construed in accordance
      with the laws of the State of New York applicable to agreements made and to
      be
      performed in said state (without reference to the conflicts of law provisions
      of
      such state, other than Sections 5-1401 and 5-1402 of the New York General
      Obligations Laws, which shall apply hereto), and the obligations, rights and
      remedies of the parties hereunder and the Grantor Trust Certificateholders
      shall
      be determined in accordance with such laws.

     

    Section
      8.05.  Notices.

     

    All
      communications provided for or permitted hereunder shall be in writing and
      shall
      be deemed to have been duly given when delivered to: (a) in the case of the
      Depositor, Structured Asset Mortgage Investments II Inc., 245 Park Avenue,
      New
      York, New York 10167, or such other address as may hereafter be furnished to
      the
      Grantor Trust Trustee in writing by the Depositor; (b) in the case of the
      Grantor Trust Trustee, to its Corporate Trust Office; (c) in the case of
      S&P, Standard & Poor’s, 55 Water Street, 41st Floor, New York, New York
      10041; and (d) in the case of Moody’s, Moody's Investors Service, Inc., 99
      Church Street, New York, New York 10007, or such other address as may hereafter
      be furnished to the other parties hereto in writing.

     

    Section
      8.06.  Severability of Provisions.

     

    If
      any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall be for any reason whatsoever held invalid, then such covenants,
      agreements, provisions or terms shall be deemed severable from the remaining
      covenants, agreements, provisions or terms of this Agreement and shall in no
      way
      affect the validity or enforceability of the other provisions of this Agreement
      or of the Grantor Trust Certificates or the rights of the Holders
      thereof.

     

    Section
      8.07.  Successors
      and Assigns.

     

    The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the respective successors and assigns of the parties hereto, and all such
      provisions shall inure to the benefit of the Grantor Trust
      Certificateholders.

     

    Section
      8.08.  Article
      and Section Headings.

     

    The
      article and section headings herein are for convenience of reference only,
      and
      shall not limit or otherwise affect the meaning hereof.

     

    Section
      8.09.  Notices
      to Rating Agencies.

     

    The
      Grantor Trust Trustee shall notify the Rating Agencies at such time as it is
      otherwise required pursuant to this Agreement to give notice of the occurrence
      of any of the events described in clauses (a), (b), or (e) below or provide
      a
      copy to the Rating Agencies at such time as otherwise required to be delivered
      pursuant to this Agreement of each of the statements described in clauses (c)
      and (e) below:

     

    (a)  a
      material change or amendment to this Agreement,

     

    (b)  the
      termination or appointment of a successor Grantor Trust Trustee or a change
      in
      the majority ownership of the Grantor Trust Trustee,

     

    (c)  the
      monthly distribution statement required to be made available or delivered to
      the
      Grantor Trust Certificateholders pursuant to Section 3.06,

     

    (d)  Notice
      of
      Final Distribution required to be delivered pursuant to Section 7.01(b),
      and

     

    (e)  a
      change
      in the location of the Certificate Account.

     

    The
      Depositor shall notify the Rating Agencies of any change in its
      identity.

     

    Section
      8.10.  Acts
      of Grantor Trust Certificateholders.  (a)  Any request,
      demand, authorization, direction, notice, consent, waiver or other action
      provided by this Agreement to be given or taken by Grantor Trust
      Certificateholders may be embodied in and evidenced by one or more instruments
      of substantially similar tenor signed by such Grantor Trust Certificateholders
      in person or by an agent duly appointed in writing.  Except as herein
      otherwise expressly provided, such action shall become effective when such
      instrument or instruments are delivered to the Grantor Trust Trustee and, where
      it is expressly required, to the Depositor.  Proof of execution of any
      such instrument or of a writing appointing any such agent shall be sufficient
      for any purpose of this Agreement and conclusive in favor of the Grantor Trust
      Trustee and the Depositor, if made in the manner provided in this Section
      8.10.

     

    (b)  The
      fact
      and date of the execution by any Person of any such instrument or writing may
      be
      proved by the affidavit of a witness of such execution or by a certificate
      of a
      notary public or other officer authorized by law to take acknowledgments of
      deeds, certifying that the individual signing such instrument or writing
      acknowledged to him the execution thereof.  Where such execution is by
      a signer acting in a capacity other than his or her individual capacity, such
      certificate or affidavit shall also constitute sufficient proof of his or her
      authority.  The fact and date of the execution of any such instrument
      or writing, or the authority of the individual executing the same, may also
      be
      proved in any other manner which the Grantor Trust Trustee deems
      sufficient.

     

    (c)  The
      ownership of Grantor Trust Certificates (notwithstanding any notation of
      ownership or other writing on such Grantor Trust Certificates, except an
      endorsement in accordance with Section 4.02 made on a Grantor Trust Certificates
      presented in accordance with Section 4.04) shall be proved by the Certificate
      Register, and neither the Grantor Trust Trustee, the Depositor, nor any
      successor to either such party shall be affected by any notice to the
      contrary.

     

    (d)  Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action of the holder of any Grantor Trust Certificate shall bind every future
      holder of the same Grantor Trust Certificate and the holder of every Grantor
      Trust Certificate issued upon the registration of transfer or exchange thereof,
      if applicable, or in lieu thereof with respect to anything done, omitted or
      suffered to be done by the Grantor Trust Trustee, the Depositor, or any
      successor to either such party in reliance thereon, whether or not notation
      of
      such action is made upon such Certificates.

     

    (e)  In
      determining whether the Holders of the requisite Percentage Interest of Grantor
      Trust Certificates have given any request, demand, authorization, direction,
      notice, consent or waiver hereunder, Grantor Trust Certificates owned by the
      Grantor Trust Trustee or the Depositor or any Affiliate thereof shall be
      disregarded, except as otherwise provided in Section 8.01(b), except that,
      in
      determining whether the Grantor Trust Trustee shall be protected in relying
      upon
      any such request, demand, authorization, direction, notice, consent or waiver,
      only Grantor Trust Certificates which the Grantor Trust Trustee knows to be
      so
      owned shall be so disregarded.  Grantor Trust Certificates which have
      been pledged in good faith to the Grantor Trust Trustee or the Depositor or
      any
      Affiliate thereof may be regarded as outstanding if the pledgor establishes
      to
      the satisfaction of the Grantor Trust Trustee the pledgor’s right to act with
      respect to such Grantor Trust Certificates and that the pledgor is not an
      Affiliate of the Grantor Trust Trustee or the Depositor, as the case may
      be.

     

    IN
      WITNESS WHEREOF, the Depositor and the Grantor Trust Trustee have caused their
      names to be signed hereto by their respective duly authorized officers, all
      as
      of the day and year first above written.

     

    

    
      	
              STRUCTURED
                ASSET MORTGAGE INVESTMENTS II INC., as Depositor

            
	 
	 
	
              By:

            	/s/
              Joseph T. Jurkowski, Jr. 
	
              Name:  Joseph
                T. Jurkowski, Jr.

            
	
              Title:    Vice
                President

            
	 
	 
	
              WELLS
                FARGO BANK, N.A., as Grantor Trust Trustee

            
	 
	 
	
              By:

            	/s/
              Stacey M. Taylor 
	
              Name:  Stacey
                M. Taylor

            
	
              
                Title:    Vice
                  President

              

            
	 
	 
	 
	 
	 
	 
	 

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              STATE
                OF NEW YORK

            	
              )

            	 
	 	 	
              ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            	 

    

    

    On
      the
      31st day of
      August, 2007 before me, a notary public in and for said State, personally
      appeared Joseph T. Jurkoswki, Jr. known to me to be a Vice President of
      Structured Asset Mortgage Investments II Inc., the corporation that executed
      the
      within instrument, and also known to me to be the person who executed it on
      behalf of said corporation, and acknowledged to me that such corporation
      executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    

    
      	 	 
	 	
              Notary
                Public

            
	 	 
	
              [Notarial
                Seal]

            	
              Commission
                Expires:

            

    

    

    

    

    
      	
              STATE
                OF MARYLAND

            	
              )

            	 
	 	 	
              ss.:

            
	
              COUNTY
                OF HOWARD

            	
              )

            	 

    

    

    On
      the
      31st day of
      August, 2007 before me, a notary public in and for said State, personally
      appeared ____________________________ known to me to be a(n)
      ________________________ of Wells Fargo Bank, N.A., the national banking
      association that executed the within instrument, and also known to me to be
      the
      person who executed it on behalf of said national banking association, and
      acknowledged to me that such national banking association executed the within
      instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    

    
      	 	 
	 	
              Notary
                Public

            
	 	 
	
              
                [Notarial
                  Seal]

              

            	
              Commission
                Expires:

            

    

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    FORM
      OF
      GRANTOR TRUST CERTIFICATE

    

    CLASS
      [ ]-A[ ] GRANTOR TRUST CERTIFICATE

     

    THE
      CURRENT PRINCIPAL AMOUNT OF THIS GRANTOR TRUST CERTIFICATE WILL BE DECREASED
      BY
      THE PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY,
      FOLLOWING THE INITIAL ISSUANCE OF THE GRANTOR TRUST CERTIFICATES, THE CURRENT
      PRINCIPAL AMOUNT OF THIS GRANTOR TRUST CERTIFICATE WILL BE DIFFERENT FROM THE
      DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS GRANTOR TRUST CERTIFICATE MAY
      ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT BY INQUIRY OF THE GRANTOR TRUST TRUSTEE
      NAMED HEREIN.

     

    UNLESS
      THIS GRANTOR TRUST CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
      OF
      THE DEPOSITORY TRUST COMPANY TO THE GRANTOR TRUST TRUSTEE OR ITS AGENT FOR
      REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY GRANTOR TRUST CERTIFICATE
      ISSUED WILL BE REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
      REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND
      ANY PAYMENT WILL BE MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE
      HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
      REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
      HEREIN.

     

    

    
      	
              Grantor
                Trust Certificate No. [  ]

            	
              Variable
                Pass-Through Rate

            
	 	 
	
              Class
                [ ]-A-[ ]

            	 
	 	 
	
              Date
                of Grantor Trust Agreement:

              As
                of August 31, 2007

            	
              Aggregate
                Initial Current Principal Amount of all Grantor Trust Certificates
                of this
                Class as of the Closing Date:

              $[         ]

            
	 	 
	
              First
                Distribution Date:

              September
                26, 2007

            	
              Initial
                Current Principal Amount of this Grantor Trust Certificate as of
                the
                Closing Date:

              $[         ]

            
	 	 
	
              Grantor
                Trust Trustee:

              Wells
                Fargo Bank, N.A.

            	
              CUSIP:
                [         ]

            
	 	 
	
              Assumed
                Final Distribution Date:

              [_______]

            	 
	 	 

    

     

     

    BEAR
      STEARNS STRUCTURED PRODUCTS INC. TRUST 2007-R6

     

    GRANTOR
      TRUST CERTIFICATES

     

    SERIES
      2007-R6

     

    evidencing
      a Percentage Interest in the distributions allocable to the Class [ ]-A-[ ]
      Grantor Trust Certificates with respect to the [Group I][Group II] Sub-Trust
      consisting primarily of the [Group I][Group II] Underlying Securities sold
      by
      STRUCTURED ASSET MORTGAGE INVESTMENTS II INC.

     

    This
      Grantor Trust Certificate is payable solely from the assets of the [Group
      I][Group II] Sub-Trust, and does not represent an obligation of or interest
      in
      Structured Asset Mortgage Investments II Inc., the Grantor Trust Trustee
      referred to below or any of their affiliates or any other person. Neither this
      Grantor Trust Certificate nor the related Underlying Securities are guaranteed
      or insured by any governmental entity or by Structured Asset Mortgage
      Investments II Inc., the Grantor Trust Trustee or any of their affiliates or
      any
      other person. None of Structured Asset Mortgage Investments II Inc., the Grantor
      Trust Trustee or any of their affiliates will have any obligation with respect
      to any certificate or other obligation secured by or payable from payments
      on
      the Grantor Trust Certificates.

     

    This
      certifies that Cede & Co. is the registered owner of the Percentage Interest
      evidenced hereby in the beneficial ownership interest of Grantor Trust
      Certificates of the same Class as this Grantor Trust Certificate in a trust
      (the
“Trust Fund”) primarily consisting of the [Group I][Group II] Underlying
      Securities sold by Structured Asset Mortgage Investments II Inc. (“SAMI II”).
      The [Group I][Group II] Underlying Securities were sold by EMC Mortgage
      Corporation (“EMC”) to SAMI II.  The [Group I][Group II] Sub-Trust was
      created pursuant to the Grantor Trust Agreement, dated as of the Closing Date,
      (the “Agreement”), between SAMI II, as depositor (the “Depositor”) and Wells
      Fargo, as grantor trust trustee (the “Grantor Trust Trustee”), a summary of
      certain of the pertinent provisions of which is set forth hereafter. To the
      extent not defined herein, capitalized terms used herein shall have the meaning
      ascribed to them in the Agreement. This Grantor Trust Certificate is issued
      under and is subject to the terms, provisions and conditions of the Agreement,
      to which Agreement the Holder of this Grantor Trust Certificate by virtue of
      its
      acceptance hereof assents and by which such Holder is bound.

     

    Interest
      on this Grantor Trust Certificate will accrue during the month prior to the
      month in which a Distribution Date (as hereinafter defined) occurs on the
      Current Principal Amount hereof at a per annum rate equal to the Pass-Through
      Rate as described in the Agreement. The Grantor Trust Trustee will distribute
      on
      the Business Day immediately following the Underlying Security Distribution
      Date
      of each month (each, a “Distribution Date”). to the Person in whose name this
      Grantor Trust Certificate is registered at the close of business on the last
      Business Day of the calendar month preceding the month of such Distribution
      Date, an amount equal to the product of Percentage Interest evidenced by this
      Grantor Trust Certificate and the amount (of interest and principal, if any)
      required to be distributed to the Holders of Grantor Trust Certificates of
      the
      same Class as this Grantor Trust Certificate, commencing on the First
      Distribution Date specified above. The Underlying Security Distribution Date
      is
      the 25th day of each month, or, if such 25th day is not a Business Day, the
      immediately following Business Day.

     

    Distributions
      on this Grantor Trust Certificate will be made by the Grantor Trust Trustee
      by
      check mailed to the address of the Person entitled thereto as such name and
      address shall appear on the Certificate Register or, if such Person so requests
      by notifying the Grantor Trust Trustee in writing as specified in the Agreement,
      by wire transfer. Notwithstanding the above, the final distribution on this
      Grantor Trust Certificate will be made after due notice by the Grantor Trust
      Trustee of the pendency of such distribution and only upon presentation and
      surrender of this Grantor Trust Certificate at the office or agency appointed
      by
      the Grantor Trust Trustee for that purpose and designated in such notice. The
      Initial Current Principal Amount of this Grantor Trust Certificate is set forth
      above. The Current Principal Amount hereof will be reduced to the extent of
      distributions allocable to principal hereon and any Realized Losses allocable
      hereto.

     

    This
      Grantor Trust Certificate is one of a duly authorized issue of Grantor Trust
      Certificates designated as set forth on the face hereof (the “Grantor Trust
      Certificates”), issued in four Classes. The Grantor Trust Certificates, in the
      aggregate, evidence the entire beneficial ownership interest in the Trust Fund
      formed pursuant to the Agreement.

     

    The
      Grantor Trust Certificateholder, by its acceptance of this Grantor Trust
      Certificate, agrees that it will look solely to the [Group I][Group II]
      Sub-Trust for payment hereunder and that none of the Depositor or the Grantor
      Trust Trustee are liable to the Grantor Trust Certificateholders for any amount
      payable under this Grantor Trust Certificate or the Agreement or, except as
      expressly provided in the Agreement, subject to any liability under the
      Agreement.

     

    This
      Grantor Trust Certificate does not purport to summarize the Agreement and
      reference is made to the Agreement for the interests, rights and limitations
      of
      rights, benefits, obligations and duties evidenced hereby, and the rights,
      duties and immunities of the Grantor Trust Trustee.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor
      and
      the Grantor Trust Trustee and the rights of the Grantor Trust Certificateholders
      related to the [Group I][Group II] Sub-Trust under the Agreement from time
      to
      time by the parties thereto with the consent of the Holders of the related
      Grantor Trust Certificates, evidencing Percentage Interests aggregating not
      less
      than 51% of such Sub-Trust (or in certain cases, Holders of the related Grantor
      Trust Certificates of affected Classes evidencing such percentage of the
      Percentage Interests thereof). Any such consent by the Holder of this Grantor
      Trust Certificate shall be conclusive and binding on such Holder and upon all
      future Holders of this Grantor Trust Certificate and of any Grantor Trust
      Certificate issued upon the transfer hereof or in lieu hereof whether or not
      notation of such consent is made upon this Grantor Trust Certificate. The
      Agreement also permits the amendment thereof, in certain limited circumstances,
      without the consent of the Holders of any of the related Grantor Trust
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Grantor Trust Certificate is registrable with the Grantor
      Trust Trustee upon surrender of this Grantor Trust Certificate for registration
      of transfer at the offices or agencies maintained by the Grantor Trust Trustee
      for such purposes, duly endorsed by, or accompanied by a written instrument
      of
      transfer in form satisfactory to the Grantor Trust Trustee duly executed by
      the
      Holder hereof or such Holder’s attorney duly authorized in writing, and
      accompanied by the information required to be provided to the Grantor Trust
      Trustee for WHFIT reporting purposes as described in the Agreement, and
      thereupon one or more new Grantor Trust Certificates in authorized denominations
      representing a like aggregate Percentage Interest will be issued to the
      designated transferee.

     

    The
      Grantor Trust Certificates are issuable only as registered Grantor Trust
      Certificates without coupons in the Classes and denominations specified in
      the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, this Grantor Trust Certificate is exchangeable for one or
      more new Grantor Trust Certificates evidencing the same Class and in the same
      aggregate Percentage Interest, as requested by the Holder surrendering the
      same.

     

    No
      service charge will be made to the Grantor Trust Certificateholders for any
      such
      registration of transfer, but the Grantor Trust Trustee may require payment
      of a
      sum sufficient to cover any tax or other governmental charge payable in
      connection therewith. The Depositor, Grantor Trust Trustee and any agent of
      any
      of them may treat the Person in whose name this Certificate is registered as
      the
      owner hereof for all purposes, and none of the Depositor, the Grantor Trust
      Trustee or any such agent shall be affected by notice to the
      contrary.

     

    The
      obligations created by the Agreement and the [Group I][Group II] Sub-Trust
      created thereby (other than the obligations to make payments to Grantor Trust
      Certificateholders with respect to the termination of the Agreement related
      to
      the [Group I][Group II] Sub-Trust) shall terminate upon the later of (i) the
      making of the final payment on or other liquidation of the [Group I][Group
      II]
      Underlying Securities, or (ii) the payment to the related Grantor Trust
      Certificateholders of all amounts required to be paid to them pursuant to the
      Agreement. In no event, however, will the [Group I][Group II] Sub-Trust created
      by the Agreement continue beyond the expiration of 21 years after the death
      of
      certain persons identified in the Agreement.

     

    Unless
      this Grantor Trust Certificate has been countersigned by an authorized signatory
      of the Grantor Trust Trustee by manual signature, this Grantor Trust Certificate
      shall not be entitled to any benefit under the Agreement, or be valid for any
      purpose.

     

    IN
      WITNESS WHEREOF, the Grantor Trust Trustee has caused this Certificate to be
      duly executed.

     

    
      	
              Dated:
                August 31, 2007

            	
              WELLS
                FARGO BANK, N.A.,

            

    

    
      	
               

            	
              not
                in its individual capacity but solely as Grantor Trust
                Trustee

            

      	 	 

      	 	 By:____________________________________

      	 	 Authorized
              Signatory

    

     

    

    CERTIFICATE
      OF AUTHENTICATION

    

    This
      is one of the Class [ ]-A-[ ]
      Grantor Trust Certificates referred to in the within-mentioned
      Agreement.

    

    

    
      	 	 	 	
              WELLS
                FARGO BANK, N.A.,

              Authorized
                signatory of Wells Fargo Bank, N.A., not in its individual capacity
                but
                solely as Grantor Trust Trustee

            
	 	 	 	 
	 	 	 	
              By:______________________________________                                                        

            
	 	 	 	
              Authorized
                Signatory

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
      __________________________________ (Please print or typewrite name and address
      including postal zip code of assignee) a Percentage Interest evidenced by the
      within Grantor Trust Certificate and hereby authorizes the transfer of
      registration of such interest to assignee on the Certificate Register of the
      Trust Fund.

     

    I
      (We)
      further direct the Grantor Trust Trustee to issue a new Grantor Trust
      Certificate of a like denomination and Class, to the above named assignee and
      deliver such Grantor Trust Certificate to the following address:

     

    
      	 
	 
	 

    

    
 

    
      	
              Dated:

            	
               ______________________________________

            	
               

            

    

    
      	
               

            	
              Signature
                by or on behalf of assignor

            

      	 	 

      	 	 ______________________________________

      	 	 Signature
              Guaranteed

    

     

    

    DISTRIBUTION
      INSTRUCTIONS

    

    The
      assignee should include the following for purposes of distribution:

     

    Distributions
      shall be made, by wire transfer or otherwise, in immediately available funds
      to
      _________________________________ for the account of _________________________
      account number _____________, or, if mailed by check, to
      ______________________________. Applicable statements should be mailed to
      _____________________________________________.

     

    This
      information is provided by __________________, the assignee named above, or
      ________________________, as its agent.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

     

    FORM
      OF
      CERTIFICATION TO BE

    PROVIDED
      BY THE GRANTOR TRUST TRUSTEE TO DEPOSITOR

    

    Re:           ________________________________
      Trust 200_-____(the “Trust”), Grantor Trust Certificates, Series
      200_-____, issued pursuant to the Grantor Trust Agreement, dated as of
      ________ 1, 200_ (the “Agreement” or “Trust Agreement”), between Structured
      Asset Mortgage Investments II Inc., as Depositor and Wells Fargo Bank, National
      Association, as Grantor Trust Trustee

     

    The
      Grantor Trust Trustee hereby certifies to the Depositor, and its officers,
      directors and affiliates, and with the knowledge and intent that they will
      rely
      upon this certification, that:

     

    1.  I
      have
      reviewed the annual report on Form 10-K for the fiscal year [____] (the
“Annual Report”), and all reports on Form 10-D required to be filed in
      respect of the period covered by the Annual Report (collectively with the Annual
      Report, the “Reports”), of the Trust;

     

    2.  To
      my
      knowledge, (a) the Reports, taken as a whole, do not contain any untrue
      statement of a material fact or, subject to the information required to be
      provided to the Grantor Trust Trustee with respect to the Underlying Securities
      pursuant to the Trust Agreement, the side letter agreements and other
      transaction documents, omit to state a material fact necessary to make the
      statements made, in light of the circumstances under which such statements
      were
      made, not misleading with respect to the period covered by the Annual Report,
      and (b) the Grantor Trust Trustee’s assessment of compliance and related
      attestation report referred to below, taken as a whole, do not contain any
      untrue statement of a material fact or omit to state a material fact necessary
      to make the statements made, in light of the circumstances under which such
      statements were made, not misleading with respect to the period covered by
      such
      assessment of compliance and attestation report;

     

    3.  To
      my
      knowledge and subject to the information required to be provided to the Grantor
      Trust Trustee with respect to the Underlying Securities pursuant to the Trust
      Agreement, the side letter agreements and other transaction documents, the
      distribution information required to be provided by the Grantor Trust Trustee
      under the Trust Agreement for inclusion in the Reports is included in the
      Reports;

     

    4.  I
      am
      responsible for reviewing the activities performed by the Grantor Trust Trustee
      under the Trust Agreement, and based on my knowledge and the compliance review
      conducted in preparing the compliance statement of the Grantor Trust Trustee
      required by the Trust Agreement, and except as disclosed in the Reports, the
      Grantor Trust Trustee has fulfilled its obligations under the Trust Agreement
      in
      all material respects; and

     

    5.  The
      report on assessment of compliance with servicing criteria applicable to the
      Grantor Trust Trustee for asset-backed securities of the Grantor Trust Trustee
      and each Subcontractor utilized by the Grantor Trust Trustee and related
      attestation report on assessment of compliance with servicing criteria
      applicable to it required to be included in the Annual Report in accordance
      with
      Item 1122 of Regulation AB and Exchange Act Rules 13a-18 and 15d-18 has been
      included as an exhibit to the Annual Report.  Any material instances
      of non-compliance are described in such report and have been disclosed in the
      Annual Report.

     

    In
      giving the certifications above, the
      Grantor Trust Trustee has reasonably relied on information provided to it by
      the
      following unaffiliated parties:  [names of servicer(s), master
      servicer, subservicer, depositor, Grantor Trust Trustee,
      custodian(s)]

     

    Date:_____________________________________                                                                           

    
____________________________________

    [Signature]

    [Title]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

     

    SERVICING
      CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

     

    Definitions

    Grantor
      Trust Trustee – waterfall calculator

    Grantor
      Trust Trustee – fiduciary of the transaction

     

    Note:  The
      definitions above describe the essential function that the party performs,
      rather than the party’s title.  So, for example, in a particular
      transaction, the Grantor Trust Trustee may perform the “paying agent” and
“securities administrator” functions, while in another transaction, the
      securities administrator may perform these functions.

     

    Where
      there are multiple checks for criteria the attesting party will identify in
      their management assertion that they are attesting only to the portion of the
      distribution chain they are responsible for in the related transaction
      agreements.

     

    Key:                      X
      – obligation

    

     

    
      	
              Reg
                AB Reference

            	
              Servicing
                Criteria

            	
              Grantor
                Trust Trustee

            
	 	
              General
                Servicing Considerations

            	 
	
              1122(d)(1)(i)

            	
              Policies
                and procedures are instituted to monitor any performance or other
                triggers
                and events of default in accordance with the transaction
                agreements.

            	
              X

            
	
              1122(d)(1)(ii)

            	
              If
                any material servicing activities are outsourced to third parties,
                policies and procedures are instituted to monitor the third party’s
                performance and compliance with such servicing activities.

            	
              X

            
	
              1122(d)(1)(iii)

            	
              Any
                requirements in the transaction agreements to maintain a back-up
                servicer
                for the Pool Assets are maintained.

            	 
	
              1122(d)(1)(iv)

            	
              A
                fidelity bond and errors and omissions policy is in effect on the
                party
                participating in the servicing function throughout the reporting
                period in
                the amount of coverage required by and otherwise in accordance with
                the
                terms of the transaction agreements.

            	 
	 	
              Cash
                Collection and Administration

            	 
	
              1122(d)(2)(i)

            	
              Payments
                on pool assets are deposited into the appropriate custodial bank
                accounts
                and related bank clearing accounts no more than two business days
                following receipt, or such other number of days specified in the
                transaction agreements.

            	
              X

            
	
              1122(d)(2)(ii)

            	
              Disbursements
                made via wire transfer on behalf of an obligor or to an investor
                are made
                only by authorized personnel.

            	
              X

            
	
              1122(d)(2)(iii)

            	
              Advances
                of funds or guarantees regarding collections, cash flows or distributions,
                and any interest or other fees charged for such advances, are made,
                reviewed and approved as specified in the transaction
                agreements.

            	
              X

            
	
              1122(d)(2)(iv)

            	
              The
                related accounts for the transaction, such as cash reserve accounts
                or
                accounts established as a form of over collateralization, are separately
                maintained (e.g., with respect to commingling of cash) as set forth
                in the
                transaction agreements.

            	
              X

            
	
              1122(d)(2)(v)

            	
              Each
                custodial account is maintained at a federally insured depository
                institution as set forth in the transaction agreements. For purposes
                of
                this criterion, “federally insured depository institution” with respect to
                a foreign financial institution means a foreign financial institution
                that
                meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                Act.

            	
              X

            
	
              1122(d)(2)(vi)

            	
              Unissued
                checks are safeguarded so as to prevent unauthorized
                access.

            	
              X

            
	
              1122(d)(2)(vii)

            	
              Reconciliations
                are prepared on a monthly basis for all asset-backed securities related
                bank accounts, including custodial accounts and related bank clearing
                accounts. These reconciliations are (A) mathematically accurate;
                (B)
                prepared within 30 calendar days after the bank statement cutoff
                date, or
                such other number of days specified in the transaction agreements;
                (C)
                reviewed and approved by someone other than the person who prepared
                the
                reconciliation; and (D) contain explanations for reconciling items.
                These
                reconciling items are resolved within 90 calendar days of their original
                identification, or such other number of days specified in the transaction
                agreements.

            	
              X

            
	 	
              Investor
                Remittances and Reporting

            	 
	
              1122(d)(3)(i)

            	
              Reports
                to investors, including those to be filed with the Commission, are
                maintained in accordance with the transaction agreements and applicable
                Commission requirements. Specifically, such reports (A) are prepared
                in
                accordance with timeframes and other terms set forth in the transaction
                agreements; (B) provide information calculated in accordance with
                the
                terms specified in the transaction agreements; (C) are filed with
                the
                Commission as required by its rules and regulations; and (D) agree
                with
                investors’ or the trustee’s records as to the total unpaid principal
                balance and number of Pool Assets serviced by the
                Servicer.

            	
              X

            
	
              1122(d)(3)(ii)

            	
              Amounts
                due to investors are allocated and remitted in accordance with timeframes,
                distribution priority and other terms set forth in the transaction
                agreements.

            	
              X

            
	
              1122(d)(3)(iii)

            	
              Disbursements
                made to an investor are posted within two business days to the Servicer’s
                investor records, or such other number of days specified in the
                transaction agreements.

            	
              X

            
	
              1122(d)(3)(iv)

            	
              Amounts
                remitted to investors per the investor reports agree with cancelled
                checks, or other form of payment, or custodial bank
                statements.

            	
              X

            
	 	
              Pool
                Asset Administration

            	 
	
              1122(d)(4)(i)

            	
              Collateral
                or security on pool assets is maintained as required by the transaction
                agreements or related pool asset documents.

            	 
	
              1122(d)(4)(ii)

            	
              Pool
                assets and related documents are safeguarded as required by the
                transaction agreements

            	 
	
              1122(d)(4)(iii)

            	
              Any
                additions, removals or substitutions to the asset pool are made,
                reviewed
                and approved in accordance with any conditions or requirements in
                the
                transaction agreements.

            	 
	
              1122(d)(4)(iv)

            	
              Payments
                on pool assets, including any payoffs, made in accordance with the
                related
                pool asset documents are posted to the Servicer’s obligor records
                maintained no more than two business days after receipt, or such
                other
                number of days specified in the transaction agreements, and allocated
                to
                principal, interest or other items (e.g., escrow) in accordance with
                the
                related pool asset documents.

            	 
	
              1122(d)(4)(v)

            	
              The
                Servicer’s records regarding the pool assets agree with the Servicer’s
                records with respect to an obligor’s unpaid principal
                balance.

            	 
	
              1122(d)(4)(vi)

            	
              Changes
                with respect to the terms or status of an obligor's pool assets (e.g.,
                loan modifications or re-agings) are made, reviewed and approved
                by
                authorized personnel in accordance with the transaction agreements
                and
                related pool asset documents.

            	 
	
              1122(d)(4)(vii)

            	
              Loss
                mitigation or recovery actions (e.g., forbearance plans, modifications
                and
                deeds in lieu of foreclosure, foreclosures and repossessions, as
                applicable) are initiated, conducted and concluded in accordance
                with the
                timeframes or other requirements established by the transaction
                agreements.

            	 
	
              1122(d)(4)(viii)

            	
              Records
                documenting collection efforts are maintained during the period a
                pool
                asset is delinquent in accordance with the transaction agreements.
                Such
                records are maintained on at least a monthly basis, or such other
                period
                specified in the transaction agreements, and describe the entity’s
                activities in monitoring delinquent pool assets including, for example,
                phone calls, letters and payment rescheduling plans in cases where
                delinquency is deemed temporary (e.g., illness or
                unemployment).

            	 
	
              1122(d)(4)(ix)

            	
              Adjustments
                to interest rates or rates of return for pool assets with variable
                rates
                are computed based on the related pool asset documents.

            	 
	
              1122(d)(4)(x)

            	
              Regarding
                any funds held in trust for an obligor (such as escrow accounts):
                (A) such
                funds are analyzed, in accordance with the obligor’s pool asset documents,
                on at least an annual basis, or such other period specified in the
                transaction agreements; (B) interest on such funds is paid, or credited,
                to obligors in accordance with applicable pool asset documents and
                state
                laws; and (C) such funds are returned to the obligor within 30 calendar
                days of full repayment of the related pool assets, or such other
                number of
                days specified in the transaction agreements.

            	 
	
              1122(d)(4)(xi)

            	
              Payments
                made on behalf of an obligor (such as tax or insurance payments)
                are made
                on or before the related penalty or expiration dates, as indicated
                on the
                appropriate bills or notices for such payments, provided that such
                support
                has been received by the servicer at least 30 calendar days prior
                to these
                dates, or such other number of days specified in the transaction
                agreements.

            	 
	
              1122(d)(4)(xii)

            	
              Any
                late payment penalties in connection with any payment to be made
                on behalf
                of an obligor are paid from the Servicer’s funds and not charged to the
                obligor, unless the late payment was due to the obligor’s error or
                omission.

            	 
	
              1122(d)(4)(xiii)

            	
              Disbursements
                made on behalf of an obligor are posted within two business days
                to the
                obligor’s records maintained by the servicer, or such other number of days
                specified in the transaction agreements.

            	 
	
              1122(d)(4)(xiv)

            	
              Delinquencies,
                charge-offs and uncollectible accounts are recognized and recorded
                in
                accordance with the transaction agreements.

            	 
	
              1122(d)(4)(xv)

            	
              Any
                external enhancement or other support, identified in Item 1114(a)(1)
                through (3) or Item 1115 of Regulation AB, is maintained as set forth
                in
                the transaction agreements.  (In this transaction there is no
                external enhancement or other support.)

            	 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

     

    FORM
      10-D, FORM 8-K AND FORM 10-K REPORTING RESPONSIBILITY

     

    As
      to
      each item described below, the entity indicated as the Responsible Party shall
      be primarily responsible for reporting the information to the party identified
      as responsible for preparing the Securities Exchange Act Reports pursuant to
      Section 3.11 of the Grantor Trust Agreement.

     

    Under
      Item 1 of Form 10-D: a) items marked “Monthly Statement to Grantor Trust
      Certificateholders” are required to be included in the periodic Distribution
      Date statement under Section 3.06, provided by the Grantor Trust Trustee based
      on information received from the party providing such information; and b) items
      marked “Form 10-D report” are required to be in the Form 10-D report but not the
      Monthly Statements to Grantor Trust Certificateholders, provided by the party
      indicated.  Information under all other Items of Form 10-D is to be
      included in the Form 10-D report.  All such information and any other
      Items on Form 8-K and Form 10-D set forth in this Exhibit shall be sent to
      the
      Grantor Trust Trustee and the Depositor.

     

    
      	
              Form

            	
              Item

            	
              Description

            	
              Grantor
                Trust Trustee

            	
              Depositor

            	
              Sponsor

            	 
	
              10-D

            	
              Must
                be filed within 15 days of the distribution date for the asset-backed
                securities.

            	 	 	 
	
              1

            	
              Distribution
                and Pool Performance Information

            	 	 	 	 
	
              Item
                1121(a) – Distribution and Pool Performance
                Information

            	 	 	 	 
	
              (1)
                Any applicable record dates, accrual dates, determination dates for
                calculating distributions and actual distribution dates for the
                distribution period.

            	
                
                X  

               

                
                (Monthly Statements to Grantor Trust 
                Certificateholders)

            	 	 	 
	
              (2)
                Cash flows received and the sources thereof for distributions, fees
                and
                expenses.

            	
                
                X

               

                
                (Monthly Statements to Grantor Trust
                Certificateholders)

            	 	 	 
	
              (3)
                Calculated amounts and distribution of the flow of funds for the
                period
                itemized by type and priority of payment, including:

            	
                
                X

               

              (Monthly
                Statements to Grantor Trust Certificateholders)

            	 	 	 
	
              (i)
                Fees or expenses accrued and
                paid, with an identification of the general purpose of such fees
                and the
                party receiving such fees or expenses.

            	 	 	 	 
	
              (ii)
                Payments accrued or paid
                with respect to enhancement or other support identified in Item 1114 of
                Regulation AB (such as insurance premiums or other enhancement maintenance
                fees), with an identification of the general purpose of such payments
                and
                the party receiving such payments.

            	
                
                X

               

              (Monthly
                Statements to Grantor Trust Certificateholders)

            	 	 	 
	
              (iii)
                Principal, interest and
                other distributions accrued and paid on the asset-backed securities
                by
                type and by class or series and any principal or interest shortfalls
                or
                carryovers.

            	
                
                X

               

                
                (Monthly Statements to Grantor Trust
                Certificateholders)

            	 	 	 
	
              (iv)
                The amount of excess cash
                flow or excess spread and the disposition of excess cash
                flow.

            	
                
                X

               

                
                (Monthly Statements to Grantor Trust
                Certificateholders)

            	 	 	 
	
              (4)
                Beginning and ending principal balances of the asset-backed
                securities.

            	
                
                X

               

                
                (Monthly Statements to Grantor Trust
                Certificateholders)

            	 	 	 
	
              (5)
                Interest rates applicable to the pool assets and the asset-backed
                securities, as applicable. Consider providing interest rate information
                for pool assets in appropriate distributional groups or incremental
                ranges.

            	
                
                X

               

                
                (Monthly Statements to Grantor Trust
                Certificateholders)

            	 	 	 
	
              (6)
                Beginning and ending balances of transaction accounts, such as reserve
                accounts, and material account activity during the period.

            	
                
                X

               

                
                (Monthly Statements to Grantor Trust
                Certificateholders)

            	 	 	 
	
              (7)
                Any amounts drawn on any credit enhancement or other support identified
                in
                Item 1114 of Regulation AB, as applicable, and the amount of coverage
                remaining under any such enhancement, if known and
                applicable.

            	
                
                X

               

                
                (Monthly Statements to Grantor Trust
                Certificateholders)

            	 	 	 
	
              (8)
                Number and amount of pool assets at the beginning and ending of each
                period, and updated pool composition information, such as weighted
                average
                coupon, weighted average remaining term, pool factors and prepayment
                amounts.

            	
                
                X

               

                
                (Monthly Statements to Grantor Trust
                Certificateholders)

               

            	
              Updated
                pool composition information fields to be as specified by Depositor
                from
                time to time

            	 	 
	
              (9)
                Delinquency and loss information for the period.

            	
                
                X

               

                
                (Monthly Statements to Grantor Trust
                Certificateholders)

            	 	 	 
	
              In
                addition, describe any material changes to the information specified
                in
                Item 1100(b)(5) of Regulation AB regarding the pool assets.
                (methodology)

            	 	 	 	 
	
              (10)
                Information on the amount, terms and general purpose of any advances
                made
                or reimbursed during the period, including the general use of funds
                advanced and the general source of funds for
                reimbursements.

            	
                
                X

               

                
                (Monthly Statements to Grantor Trust
                Certificateholders)

            	 	 	 
	
              (11)
                Any material modifications, extensions or waivers to pool asset terms,
                fees, penalties or payments during the distribution period or that
                have
                cumulatively become material over time.

            	
                
                X

               

                
                (Monthly Statements to Grantor Trust
                Certificateholders)

            	 	 	 
	
              (12)
                Material breaches of pool asset representations or warranties or
                transaction covenants.

            	
                
                X

               

                
                (if agreed upon by the parties)

            	
              X

            	 	 
	
              (13)
                Information on ratio, coverage or other tests used for determining
                any
                early amortization, liquidation or other performance trigger and
                whether
                the trigger was met.

            	
                
                X

               

                
                (Monthly Statements to Grantor Trust
                Certificateholders)

            	 	 	 
	
              (14)
                Information regarding any new issuance of asset-backed securities
                backed
                by the same asset pool,

            	 	
              X

            	 	 
	
              information
                regarding any pool asset changes (other than in connection with a
                pool
                asset converting into cash in accordance with its terms), such as
                additions or removals in connection with a prefunding or revolving
                period
                and pool asset substitutions and repurchases (and purchase rates,
                if
                applicable), and cash flows available for future purchases, such
                as the
                balances of any prefunding or revolving accounts, if
                applicable.

            	
                
                X

            	
              X

            	 	 
	
              Disclose
                any material changes in the solicitation, credit-granting, underwriting,
                origination, acquisition or pool selection criteria or procedures,
                as
                applicable, used to originate, acquire or select the new pool
                assets.

            	 	
              X

            	
              X

            	 
	
              Item
                1121(b) – Pre-Funding or Revolving Period Information

               

              Updated
                pool information as required under Item 1121(b).

            	 	
              X

            	 	 
	
              2

            	
              Legal
                Proceedings

            	 	 	 	 
	
              Item
                1117 – Legal proceedings pending against the following entities, or their
                respective property, that is material to Grantor Trust Certificateholders,
                including proceedings known to be contemplated by governmental
                authorities:

            	 	 	 	 
	
              Sponsor
                (Seller)

            	 	 	
              X

            	 
	
              Depositor

            	 	
              X

            	 	 
	
              Grantor
                Trust Trustee

            	
                
                X

               

            	 	 	 
	
              Issuing
                entity

            	 	
              X

            	 	 
	
              Master
                Servicer, affiliated Servicer, other Servicer servicing 20% or more
                of
                pool assets at time of report, other material servicers

            	
                
                N/A

            	 	 	 
	
              Securities
                Administrator

            	
                
                N/A

            	 	 	 
	
              Originator
                of 20% or more of pool assets as of the Cut-off Date

            	 	
              X

            	 	 
	
              Custodian

            	
                
                N/A

            	 	 	 
	
              3

            	
              Sales
                of Securities and Use of Proceeds

            	 	 	 	 
	
              Information
                from Item 2(a) of Part II of Form 10-Q:

               

              With
                respect to any sale of securities by the sponsor, depositor or issuing
                entity, that are backed by the same asset pool or are otherwise issued
                by
                the issuing entity, whether or not registered, provide the sales
                and use
                of proceeds information in Item 701 of Regulation S-K.  Pricing
                information can be omitted if securities were not
                registered.

            	 	
              X

            	 	 
	
              4

            	
              Defaults
                Upon Senior Securities

            	 	 	 	 
	
              Information
                from Item 3 of Part II of Form 10-Q:

               

              Report
                the occurrence of any Event of Default (after expiration of any grace
                period and provision of any required notice)

            	
                
                X

            	 	 	 
	
              5

            	
              Submission
                of Matters to a Vote of Security Holders

            	 	 	 	 
	
              Information
                from Item 4 of Part II of Form 10-Q

            	
                
                X

            	 	 	 
	
              6

            	
              Significant
                Obligors of Pool Assets

            	 	 	 	 
	
              Item
                1112(b) –Significant Obligor Financial
                Information*

            	 	
              X

            	 	 
	
              *This
                information need only be reported on the Form 10-D for the distribution
                period in which updated information is required pursuant to the
                Item.

            	 	 	 	 
	
              7

            	
              Significant
                Enhancement Provider Information

            	 	 	 	 
	
              Item
                1114(b)(2) – Credit Enhancement Provider Financial
                Information*

            	 	 	 	 
	
              Determining
                applicable disclosure threshold

            	 	 	 	 
	
              Requesting
                required financial information or effecting incorporation by
                reference

            	 	 	 	 
	
              Item
                1115(b) – Derivative Counterparty Financial
                Information*

            	 	 	 	 
	
              Determining
                current maximum probable exposure

            	 	
              X

            	 	 
	
              Determining
                current significance percentage

            	 	 	 	 
	
              Requesting
                required financial information or effecting incorporation by
                reference

            	 	 	 	 
	
              *This
                information need only be reported on the Form 10-D for the distribution
                period in which updated information is required pursuant to the
                Items.

            	 	 	 	 
	
              8

            	
              Other
                Information

            	 	 	 	 
	
              Disclose
                any information required to be reported on Form 8-K during the period
                covered by the Form 10-D but not reported

            	
                   
                The Responsible Party for the applicable Form 8-K item as
                indicated below.

            	 
	
              9

            	
              Exhibits

            	 	 	 
	
              Distribution
                report

            	
                
                X

            	 	 	 
	
              Exhibits
                required by Item 601 of Regulation S-K, such as material
                agreements

            	 	
              X

            	 	 
	
              8-K

            	
              Must
                be filed within four business days of an event reportable on Form
                8-K.

            	 
	
              1.01

            	
              Entry
                into a Material Definitive Agreement

            	 	 	 	 
	
              Disclosure
                is required regarding entry into or amendment of any definitive agreement
                that is material to the securitization, even if depositor is not
                a
                party.

               

              Examples:
                servicing agreement, custodial agreement.

               

              Note:
                disclosure not required as to definitive agreements that are fully
                disclosed in the prospectus

            	
                
                X

            	
              X

            	
              X

            	 
	
              1.02

            	
              Termination
                of a Material Definitive Agreement

            	
                
                X

            	
              X

            	
              X

            	 
	
              Disclosure
                is required regarding termination of  any definitive agreement
                that is material to the securitization (other than expiration in
                accordance with its terms), even if depositor is not a party.

               

              Examples:
                servicing agreement, custodial agreement.

            	 	 	 	 
	
              1.03

            	
              Bankruptcy
                or Receivership

            	 	 	 	 
	
              Disclosure
                is required regarding the bankruptcy or receivership, if known, with
                respect to any of the following:

               

              Sponsor
                (Seller), Depositor, Master Servicer, affiliated Servicer, other
                Servicer
                servicing 20% or more of pool assets at time of report, other material
                servicers, Certificate Administrator, Grantor Trust Trustee, significant
                obligor, credit enhancer (10% or more), derivatives counterparty,
                Custodian

            	
                
                X

            	
              X

            	
              X

            	 
	
              2.04

            	
              Triggering
                Events that Accelerate or Increase a Direct Financial Obligation
                or an
                Obligation under an Off-Balance Sheet Arrangement

            	 	 	 	 
	
              Includes
                an early amortization, performance trigger or other event, including
                event
                of default, that would materially alter the payment priority/distribution
                of cash flows/amortization schedule.

               

              Disclosure
                will be made of events other than waterfall triggers which are disclosed
                in the Monthly Statement to Grantor Trust
                Certificateholders

            	
                
                X

            	 	 	 
	
              3.03

            	
              Material
                Modification to Rights of Security Holders

            	 	 	 	 
	
              Disclosure
                is required of any material modification to documents defining the
                rights
                of Grantor Trust Certificateholders, including the Pooling and Servicing
                Agreement

            	
                
                X

            	
              X

            	 	 
	
              5.03

            	
              Amendments
                to Articles of Incorporation or Bylaws; Change in Fiscal
                Year

            	 	 	 	 
	
              Disclosure
                is required of any amendment “to the governing documents of the issuing
                entity”

            	 	
              X

            	 	 
	
              5.06

            	
              Change
                in Shell Company Status

            	 	 	 	 
	
              [Not
                applicable to ABS issuers]

            	 	
              X

            	 	 
	
              6.01

            	
              ABS
                Informational and Computational Material

            	 	 	 	 
	
              [Not
                included in reports to be filed under Section 3.18]

            	 	
              X

            	 	 
	
              6.02

            	
              Change
                of Servicer or Grantor Trust Trustee

            	 	 	 	 
	
              Requires
                disclosure of any removal, replacement, substitution or addition
                of any
                master servicer, affiliated servicer, other servicer servicing 10%
                or more
                of pool assets at time of report, other material servicers, certificate
                administrator or Grantor Trust Trustee.

            	
                
                X

            	
              X

               

            	 	 
	 	
              Reg
                AB disclosure about any new servicer is also required.

            	
                
                N/A

            	 	 	 
	
              Reg
                AB disclosure about any new Grantor Trust Trustee is also
                required.

            	
                
                X

                
                (to the extent of a new Grantor Trust Trustee)

            	 	 	 
	
              Reg
                AB disclosure about any new securities administrator is also
                required.

            	
                
                N/A

            	 	 	 
	
              6.03

            	
              Change
                in Credit Enhancement or Other External Support In this transaction
                there
                is no external enhancement or other support.

            	 	 	 	 
	
              Covers
                termination of any enhancement in manner other than by its terms,
                the
                addition of an enhancement, or a material change in the enhancement
                provided.  Applies to external credit enhancements as well as
                derivatives.

            	 	
              X

            	 	 
	 	
              Reg
                AB disclosure about any new enhancement provider is also
                required.

            	 	
              X

            	 	 
	
              6.04

            	
              Failure
                to Make a Required Distribution

            	
                
                X

            	 	 	 
	
              6.05

            	
              Securities
                Act Updating Disclosure

            	 	 	 	 
	
              If
                any material pool characteristic differs by 5% or more at the time
                of
                issuance of the securities from the description in the final prospectus,
                provide updated Reg AB disclosure about the actual asset
                pool.

            	 	
              X

            	 	 
	
              If
                there are any new servicers or originators required to be disclosed
                under
                Regulation AB as a result of the foregoing, provide the information
                called
                for in Items 1108 and 1110 respectively.

            	 	
              X

            	 	 
	
              7.01

            	
              Regulation
                FD Disclosure

            	
                
                X

            	
              X

            	 	 
	
              8.01

            	
              Other
                Events

            	 	 	 	 
	
              Any
                event, with respect to which information is not otherwise called
                for in
                Form 8-K, that the registrant deems of importance to security
                holders.

            	 	
              X

            	 	 
	
              9.01

            	
              Financial
                Statements and Exhibits

            	
                
                The Responsible Party applicable to reportable
                event.

            	 
	
              10-K

            	
              Must
                be filed within 90 days of the fiscal year end for the
                registrant.

            	 
	
              9B

            	
              Other
                Information

            	 	 	 	 
	 	 	
              Disclose
                any information required to be reported on Form 8-K during the fourth
                quarter covered by the Form 10-K but not reported

            	
                
                The Responsible Party for the applicable Form 8-K item as
                indicated above.

            	 
	 	
              15

            	
              Exhibits
                and Financial Statement Schedules

            	 	 	 	 
	
              Item
                1112(b) –Significant Obligor Financial
                Information

            	 	
              X

            	 	 
	
              Item
                1114(b)(2) – Credit Enhancement Provider Financial
                Information

            	 	 	 	 
	
              Determining
                applicable disclosure threshold

            	 	 	 	 
	
              Requesting
                required financial information or effecting incorporation by
                reference

            	 	 	 	 
	
              Item
                1115(b) – Derivative Counterparty Financial
                Information

            	 	 	 	 
	
              Determining
                current maximum probable exposure

            	 	
              X

            	 	 
	 	 	
              Determining
                current significance percentage

            	 	 	 	 
	
              Requesting
                required financial information or effecting incorporation by
                reference

            	 	 	 	 
	
              Item
                1117 – Legal proceedings pending against the following entities, or their
                respective property, that is material to Grantor Trust Certificateholders,
                including proceedings known to be contemplated by governmental
                authorities:

            	 	 	 	 
	
              Sponsor
                (Seller)

            	 	 	
              X

            	 
	
              Depositor

            	 	
              X

            	 	 
	
              Grantor
                Trust Trustee

            	
                
                X

            	 	 	 
	
              Issuing
                entity

            	 	
              X

            	 	 
	
              Master
                Servicer, affiliated Servicer, other Servicer servicing 20% or more
                of
                pool assets at time of report, other material servicers

            	
                
                N/A

            	 	 	 
	
              Securities
                Administrator

            	
                
                N/A

            	 	 	 
	
              Originator
                of 20% or more of pool assets as of the Cut-off Date

            	 	
              X

            	 	 
	
              Custodian

            	
                
                N/A

            	 	 	 
	
              Item
                1119 – Affiliations and relationships between the following entities, or
                their respective affiliates, that are material to Grantor Trust
                Certificateholders:

            	 	 	 	 
	
              Sponsor
                (Seller)

            	 	 	
              X

            	 
	
              Depositor

            	 	
              X

            	 	 
	
              Grantor
                Trust Trustee

            	
                
                X

            	 	 	 
	
              Master
                Servicer, affiliated Servicer, other Servicer servicing 20% or more
                of
                pool assets at time of report, other material servicers

            	
                
                N/A

            	 	 	 
	
              Securities
                Administrator

            	
                
                N/A

            	 	 	 
	
              Originator

            	 	
              X

            	 	 
	
              Custodian

            	
                
                N/A

            	 	 	 
	
              Credit
                Enhancer/Support Provider

            	 	
              X

            	 	 
	
              Significant
                Obligor

            	 	
              X

            	 	 
	
              Item
                1122 – Assessment of Compliance with Servicing
                Criteria

            	
                
                X

            	 	 	 
	
              Item
                1123 – Servicer Compliance Statement

            	
                
                X

            	 	 	 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E

     

    ADDITIONAL
      DISCLOSURE NOTIFICATION

     

    Wells
      Fargo Bank, N.A. as Grantor Trust Trustee

    9062
      Old
      Annapolis Road

    Columbia,
      Maryland 21045

    Fax:
      (410) 715-2380

    E-mail:  cts.sec.notifications@wellsfargo.com

     

    Attn:  Client
      Manager - BSSP 2007-R6 - SEC REPORT PROCESSING

     

    RE:  **Additional
      Form [  ] Disclosure**Required

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 3.11 of the
      Grantor Trust Agreement, dated as of August 31, 2007, by and between Structured
      Asset Mortgage Investments II Inc., as depositor, and Wells Fargo Bank, N.A.,
      as
      grantor trust trustee.  The Undersigned, as
      [    ], hereby notifies you that certain events have come to
      our attention that [will][may] need to be disclosed on Form
      [   ].

     

    Description
      of Additional Form [   ] Disclosure:

    
 

     

    List
      of
      Any Attachments hereto to be included in the Additional Form [  ]
      Disclosure:

     

    Any
      inquiries related to this
      notification should be directed to [   ], phone
      number:  [   ]; email
      address:  [   ].

     

    
      	 	 	 [NAME
              OF PARTY]	 
	 	 	 as
              [role]	 
	 	 	 	 
	 	 	 	 
	 	 	 By:
              __________________	 
	 	 	 Name:	 
	 	 	 Title:	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

     

    UNDERLYING
      SECURITIES

     

    

    
      	
              
                 

                Full
                  Name of Series

              

            	 	
              
                Initial
                  Principal Balance

              

            	 	 	
              
                Current
                  Principal Balance

              

            	 	 	
              
                
                

                Class
                  % in Trust

              

            	 
	
              Bear
                Stearns ALT-A Trust, Mortgage Pass-Through Certificates, Series
                2005-8,

              Class
                II-1A-1 Certificates

            	 	$	
              716,778,200.00

            	 	 	$	
              217,963,703.01

            	 	 	 	45.4503	%
	
              Bear
                Stearns ALT-A Trust, Mortgage Pass-Through Certificates, Series
                2005-9,

              Class
                II-3A-1 Certificates

            	 	$	
              151,019,300.00

            	 	 	$	
              99,211,238.12

            	 	 	 	100.00	%
	
              Bear
                Stearns ALT-A Trust, Mortgage Pass-Through Certificates, Series
                2005-10,

              Class
                II-5A-1 Certificates

            	 	$	
              259,783,000.00

            	 	 	$	
              95,879,190.76

            	 	 	 	56.9706	%
	
              Bear
                Stearns ALT-A Trust 2006-3, Mortgage Pass-Through Certificates, Series
                2006-3,

              Class
                II-3A-1 Certifites

            	 	$	
              304,609,000.00

            	 	 	$	
              20,019,851.20

            	 	 	 	11.7035	%
	
              Bear
                Stearns ALT-A Trust, Mortgage Pass-Through Certificates, Series
                2007-2,

              Class
                II-A-1 Certificates

            	 	$	
              241,692,000.00

            	 	 	$	
              84,525,921.66

            	 	 	 	37.5238	%
	
              Bear
                Stearns ARM Trust 2007-2, Mortgage-Backed Notes, Series
                2007-2,

              Class
                II-A-1 Notes

            	 	$	
              499,261,000.00

            	 	 	$	
              96,651,241.70

            	 	 	 	19.8816	%exv10w1

 

Execution Version

 

TERM LOAN AGREEMENT

among

BRANDYWINE REALTY TRUST

and

BRANDYWINE OPERATING PARTNERSHIP, L.P.,

as Borrowers

and

THE LENDERS IDENTIFIED HEREIN

and

CITIZENS BANK OF PENNSYLVANIA

as Administrative Agent

DATED AS OF OCTOBER 15, 2007

RBS SECURITIES CORPORATION

as Lead Arranger and Sole Bookrunner

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	SECTION 1.	 	DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	 	1.1	 	 	Definitions
	 	 	1	 
	 	1.2	 	 	Computation of Time Periods and Other Definition Provisions
	 	 	24	 
	 	1.3	 	 	Accounting Terms
	 	 	24	 
	 	1.4	 	 	Joint Venture Investments
	 	 	25	 
	 	 	 	 	 
	 	 	 	 
	SECTION 2.	 	CREDIT FACILITY
	 	 	25	 
	 	 	 	 	 
	 	 	 	 
	 	2.1	 	 	Loans
	 	 	25	 
	 	2.2	 	 	[Reserved]
	 	 	28	 
	 	2.3	 	 	[Reserved]
	 	 	28	 
	 	2.4	 	 	Joint and Several Liability of the Borrowers
	 	 	28	 
	 	2.5	 	 	Appointment of BOP
	 	 	30	 
	 	2.6	 	 	Non-Recourse
	 	 	31	 
	 	2.7	 	 	Incremental Commitments
	 	 	31	 
	 	 	 	 	 
	 	 	 	 
	SECTION 3.	 	GENERAL PROVISIONS APPLICABLE TO LOANS
	 	 	32	 
	 	 	 	 	 
	 	 	 	 
	 	3.1	 	 	Interest
	 	 	32	 
	 	3.2	 	 	Place and Manner of Payments
	 	 	33	 
	 	3.3	 	 	Prepayments
	 	 	33	 
	 	3.4	 	 	Fees
	 	 	34	 
	 	3.5	 	 	Payment in full at Maturity; Extension of Maturity
	 	 	34	 
	 	3.6	 	 	Computations of Interest and Fees
	 	 	35	 
	 	3.7	 	 	Pro Rata Treatment
	 	 	36	 
	 	3.8	 	 	Sharing of Payments
	 	 	36	 
	 	3.9	 	 	Capital Adequacy
	 	 	37	 
	 	3.10	 	 	Inability To Determine Interest Rate
	 	 	38	 
	 	3.11	 	 	Illegality
	 	 	38	 
	 	3.12	 	 	Requirements of Law
	 	 	38	 
	 	3.13	 	 	Taxes
	 	 	40	 
	 	3.14	 	 	Compensation
	 	 	42	 
	 	3.15	 	 	Mitigation; Mandatory Assignment
	 	 	43	 
	 	 	 	 	 
	 	 	 	 
	SECTION 4.	 	[RESERVED]
	 	 	43	 
	 	 	 	 	 
	 	 	 	 
	SECTION 5.	 	CONDITIONS PRECEDENT
	 	 	44	 
	 	 	 	 	 
	 	 	 	 
	 	5.1	 	 	Closing Conditions
	 	 	44	 
	 	5.2	 	 	Conditions to All Extensions of Credit
	 	 	47	 

i

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	SECTION 6.	 	REPRESENTATIONS AND WARRANTIES
	 	 	48	 
	 	 	 	 	 
	 	 	 	 
	 	6.1	 	 	Financial Condition
	 	 	48	 
	 	6.2	 	 	No Material Change
	 	 	48	 
	 	6.3	 	 	Organization and Good Standing
	 	 	48	 
	 	6.4	 	 	Due Authorization
	 	 	49	 
	 	6.5	 	 	No Conflicts
	 	 	49	 
	 	6.6	 	 	Consents
	 	 	49	 
	 	6.7	 	 	Enforceable Obligations
	 	 	50	 
	 	6.8	 	 	No Default
	 	 	50	 
	 	6.9	 	 	Ownership
	 	 	50	 
	 	6.10	 	 	Indebtedness
	 	 	50	 
	 	6.11	 	 	Litigation
	 	 	50	 
	 	6.12	 	 	Taxes
	 	 	50	 
	 	6.13	 	 	Compliance with Law
	 	 	51	 
	 	6.14	 	 	Compliance with ERISA
	 	 	51	 
	 	6.15	 	 	Organization Structure/Subsidiaries
	 	 	52	 
	 	6.16	 	 	Use of Proceeds; Margin Stock
	 	 	52	 
	 	6.17	 	 	Government Regulation
	 	 	53	 
	 	6.18	 	 	Environmental Matters
	 	 	53	 
	 	6.19	 	 	Solvency
	 	 	54	 
	 	6.20	 	 	[Reserved]
	 	 	54	 
	 	6.21	 	 	Location of Properties
	 	 	54	 
	 	6.22	 	 	Disclosure
	 	 	55	 
	 	6.23	 	 	Licenses, etc
	 	 	55	 
	 	6.24	 	 	No Burdensome Restrictions
	 	 	55	 
	 	6.25	 	 	Eligible Subsidiaries
	 	 	55	 
	 	6.26	 	 	Foreign Assets Control Regulations, Etc
	 	 	55	 
	 	 	 	 	 
	 	 	 	 
	SECTION 7.	 	AFFIRMATIVE COVENANTS
	 	 	56	 
	 	 	 	 	 
	 	 	 	 
	 	7.1	 	 	Information Covenants
	 	 	56	 
	 	7.2	 	 	Financial Covenants
	 	 	60	 
	 	7.3	 	 	Preservation of Existence
	 	 	61	 
	 	7.4	 	 	Books and Records
	 	 	61	 
	 	7.5	 	 	Compliance with Law
	 	 	61	 
	 	7.6	 	 	Payment of Taxes and Other Indebtedness
	 	 	62	 
	 	7.7	 	 	Insurance
	 	 	62	 
	 	7.8	 	 	Maintenance of Assets
	 	 	62	 
	 	7.9	 	 	Performance of Obligations
	 	 	62	 

ii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	7.10	 	 	Use of Proceeds
	 	 	63	 
	 	7.11	 	 	Audits/Inspections
	 	 	63	 
	 	7.12	 	 	Additional Credit Parties
	 	 	63	 
	 	7.13	 	 	Interest Rate Protection Agreements
	 	 	63	 
	 	7.14	 	 	Construction
	 	 	64	 
	 	7.15	 	 	Sales
	 	 	64	 
	 	 	 	 	 
	 	 	 	 
	SECTION 8.	 	NEGATIVE COVENANTS
	 	 	64	 
	 	 	 	 	 
	 	 	 	 
	 	8.1	 	 	Indebtedness
	 	 	64	 
	 	8.2	 	 	Liens
	 	 	65	 
	 	8.3	 	 	Nature of Business
	 	 	65	 
	 	8.4	 	 	Consolidation and Merger
	 	 	65	 
	 	8.5	 	 	Sale or Lease of Assets
	 	 	66	 
	 	8.6	 	 	[Intentionally Omitted.]
	 	 	66	 
	 	8.7	 	 	Restricted Payments
	 	 	66	 
	 	8.8	 	 	Transactions with Affiliates
	 	 	66	 
	 	8.9	 	 	Fiscal Year; Organizational Documents
	 	 	67	 
	 	8.10	 	 	Limitations
	 	 	67	 
	 	8.11	 	 	Other Negative Pledges
	 	 	67	 
	 	 	 	 	 
	 	 	 	 
	SECTION 9.	 	EVENTS OF DEFAULT
	 	 	67	 
	 	 	 	 	 
	 	 	 	 
	 	9.1	 	 	Events of Default
	 	 	67	 
	 	9.2	 	 	Acceleration; Remedies
	 	 	70	 
	 	9.3	 	 	Allocation of Payments After Event of Default
	 	 	71	 
	 	 	 	 	 
	 	 	 	 
	SECTION 10.	 	AGENCY PROVISIONS
	 	 	72	 
	 	 	 	 	 
	 	 	 	 
	 	10.1	 	 	Appointment
	 	 	72	 
	 	10.2	 	 	Delegation of Duties
	 	 	73	 
	 	10.3	 	 	Exculpatory Provisions
	 	 	73	 
	 	10.4	 	 	Reliance on Communications
	 	 	73	 
	 	10.5	 	 	Notice of Default
	 	 	74	 
	 	10.6	 	 	Non-Reliance on Administrative Agent and Other Lenders
	 	 	74	 
	 	10.7	 	 	Indemnification
	 	 	75	 
	 	10.8	 	 	Administrative Agent in Its Individual Capacity
	 	 	75	 
	 	10.9	 	 	Successor Agent
	 	 	76	 
	 	 	 	 	 
	 	 	 	 
	SECTION 11.	 	MISCELLANEOUS
	 	 	76	 

iii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	11.1	 	 	Notices
	 	 	76	 
	 	11.2	 	 	Right of Set-Off
	 	 	77	 
	 	11.3	 	 	Benefit of Agreement
	 	 	77	 
	 	11.4	 	 	No Waiver; Remedies Cumulative
	 	 	80	 
	 	11.5	 	 	Payment of Expenses; Indemnification
	 	 	80	 
	 	11.6	 	 	Amendments, Waivers and Consents
	 	 	81	 
	 	11.7	 	 	Counterparts/Telecopy
	 	 	83	 
	 	11.8	 	 	Headings
	 	 	83	 
	 	11.9	 	 	Defaulting Lender
	 	 	83	 
	 	11.10	 	 	Survival of Indemnification and Representations and Warranties
	 	 	83	 
	 	11.11	 	 	Governing Law; Jurisdiction
	 	 	84	 
	 	11.12	 	 	Waiver of Jury Trial
	 	 	84	 
	 	11.13	 	 	Time
	 	 	85	 
	 	11.14	 	 	Severability
	 	 	85	 
	 	11.15	 	 	Entirety
	 	 	85	 
	 	11.16	 	 	Binding Effect
	 	 	85	 
	 	11.17	 	 	Confidentiality
	 	 	86	 
	 	11.18	 	 	Further Assurances
	 	 	86	 
	 	11.19	 	 	Release of Guarantors
	 	 	86	 
	 	11.20	 	 	USA PATRIOT Act
	 	 	86	 
	 	11.21	 	 	Limitation on Liability
	 	 	87	 

iv

 

	 	 	 
	SCHEDULES
	 	 
	 
	 	 
	Schedule EG

	 	Eligible Ground Leases
	Schedule 6.15

	 	Organization Structure/Subsidiaries
	Schedule 6.21

	 	Properties
	Schedule 6.25

	 	Eligible Unencumbered Property Subsidiaries
	Schedule 8.2

	 	Existing Liens
	Schedule 11.1

	 	Notices
	 
	 	 
	EXHIBITS
	 	 
	 
	 	 
	Exhibit 1.1(a)

	 	Commitment Percentages
	Exhibit 2.1(c)

	 	Form of Notice of Borrowing
	Exhibit 2.1(f)

	 	Form of Notice of Continuation/Conversion
	Exhibit 2.1(h)

	 	Form of Note
	Exhibit 7.1(c)

	 	Form of Officer’s Certificate
	Exhibit 7.12

	 	Form of Guaranty
	Exhibit 11.3(b)

	 	Form of Assignment Agreement

 

 

TERM LOAN AGREEMENT

     THIS TERM LOAN AGREEMENT (as amended, supplemented or otherwise modified from time to time,
this “Credit Agreement”) is entered into as of October 15, 2007, among BRANDYWINE REALTY TRUST
(“BRT”), a Maryland real estate investment trust, BRANDYWINE OPERATING PARTNERSHIP, L.P. (“BOP”), a
Delaware limited partnership (collectively, the “Borrowers”), the Lenders (as defined herein), and
CITIZENS BANK OF PENNSYLVANIA, as Administrative Agent for the Lenders.

RECITALS

     WHEREAS, the Borrowers desire that the Lenders provide a term loan facility in an initial
aggregate amount of up to $150 million with the option to increase the aggregate amount to $200
million;

     WHEREAS, the Lenders party hereto have agreed to make the requested term loan facility
available to the Borrowers on the terms and conditions hereinafter set forth;

     NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

SECTION 1.

DEFINITIONS AND ACCOUNTING TERMS

     1.1 Definitions.

     As used herein, the following terms shall have the meanings herein specified unless the
context otherwise requires. Defined terms herein shall include in the singular number the plural
and in the plural the singular:

     “Acquisition” means the acquisition by merger by BRT of Prentiss that closed on January 5,
2006 in accordance with the terms of the Acquisition Purchase Agreement.

     “Acquisition Properties” means the properties of Prentiss and its Subsidiaries acquired
indirectly by the Borrowers in connection with the Acquisition which have not been sold since
January 5, 2006.

     “Acquisition Purchase Agreement” means that certain Agreement and Plan of Merger, dated as of
October 3, 2005, among the Borrowers, Prentiss and certain other parties.

     “Adjusted Eurodollar Rate” means the Eurodollar Rate plus the Applicable Percentage.

 

 

     “Adjusted NOI” means NOI less (a) an annual sum of $0.25 per square foot for all Properties
and (b) all interest income of the Combined Parties for the applicable period.

     “Administrative Agent” means Citizens Bank of Pennsylvania or any successor administrative
agent appointed pursuant to Section 10.9.

     “Affiliate” means, with respect to any Person, any other Person directly or indirectly
controlling (including but not limited to all directors and officers of such Person), controlled by
or under direct or indirect common control with such Person. A Person shall be deemed to control a
corporation, partnership, limited liability company or real estate investment trust if such Person
possesses, directly or indirectly, the power (i) to vote 10% or more of the securities having
ordinary voting power for the election of directors of such corporation or real estate investment
trust or to vote 10% or more of the partnership or membership interests of such partnership or
limited liability company or (ii) to direct or cause direction of the management and policies of
such corporation, trust, limited liability company or partnership, whether through the ownership of
voting securities, as managing member or general partner, by contract or otherwise.

     “Agency Services Address” means Two Commerce Square, 6th Floor, 2001 Market Street,
Philadelphia, Pennsylvania 19103, Attention: Kellie Anderson, Senior Vice President, or such other
address as may be identified by written notice from the Administrative Agent to the Borrowers.

     “Agent-Related Persons” means the Administrative Agent (including any successor administrative
agent), together with its Affiliates (including, in the case of Citizens Bank of Pennsylvania in
its capacity as Administrative Agent, RBS Securities Corporation), and the officers, directors,
employees, agents and attorneys-in-fact of such Persons and Affiliates.

     “Annualized Modified Adjusted NOI” means an amount equal to (a) Adjusted NOI for the prior
fiscal quarter for all Properties owned during such entire fiscal quarter multiplied times four
plus (b) Adjusted NOI for the number of days owned for all Properties acquired during such fiscal
quarter multiplied by a fraction equal to 365 divided by the number of days such Property was owned
by a Combined Party.

     “Applicable Percentage” means if either (i) BRT has at least two Unsecured Senior Debt Ratings
in effect or (ii) BOP has at least two Unsecured Senior Debt Ratings in effect, the appropriate
applicable percentages corresponding to the Pricing Level in the table below based upon the lowest
Unsecured Senior Debt Ratings of (A) BRT, if BRT has at least two Unsecured Senior Debt Ratings in
effect and BOP does not, (B) BOP, if BOP has at least two Unsecured Senior Debt Ratings in effect
and BRT does not or (C) if both BRT and BOP have at least two Unsecured Senior Debt Ratings in
effect, the Borrower with the lowest Unsecured Senior Debt Rating, in each case as of the most

 - 2 - 

 

recent Calculation Date; provided that (x) if either or both of BOP or BRT has three Unsecured
Senior Debt Ratings in effect, the appropriate applicable percentages shall
correspond to the Pricing Level based on the lower Unsecured Senior Debt Rating of the two
highest Unsecured Senior Debt Ratings of the applicable Borrower under clauses (A), (B) and (C)
above and (y) if neither BOP nor BRT has at least two Unsecured Senior Debt Ratings in effect, the
Applicable Percentage shall be based on Pricing Level IV below:

	 	 	 	 	 	 	 
	 	 	 	 	Applicable Percentage
	Pricing Level	 	Unsecured Senior Debt Rating	 	for Eurodollar Loans
	I

	 	BBB+ or better from S&P,

Baa1 or better from Moody’s,

or BBB+ or better from Fitch
	 	 	0.475	%
	II

	 	BBB from S&P,

Baa2 from Moody’s or

BBB from Fitch
	 	 	0.60	%
	III

	 	BBB- from S&P,

Baa3 from Moody’s or

BBB- from Fitch
	 	 	0.80	%
	IV

	 	<BBB- from S&P,

<Baa3 from Moody’s or

<BBB- from Fitch
	 	 	1.10	%

     The Applicable Percentage for Loans shall be determined and adjusted on the date (each a
"Calculation Date”) on which BRT or BOP obtains an Unsecured Senior Debt Rating from at least two
of S&P, Moody’s or Fitch or the date on which there is a change in any Unsecured Senior Debt Rating
of BRT or BOP that would cause a change in the Applicable Percentage, in each case promptly after
the Administrative Agent receives notice regarding such Unsecured Senior Debt Rating. Each
Applicable Percentage shall be effective from one Calculation Date until the next Calculation Date.
Any adjustment in the Applicable Percentage shall be applicable to all existing Loans.

     The Borrowers shall promptly deliver to the Administrative Agent, at the address set forth on
Schedule 11.1 and at the Agency Services Address, information regarding any change in the
Unsecured Senior Debt Rating that would change the existing Pricing Level for the Applicable
Percentage as set forth above.

     “Arranger” means RBS Securities Corporation in its capacity as lead arranger and sole
bookrunner.

     “Bankruptcy Code” means the Bankruptcy Code in Title 11 of the United States Code, as amended,
modified, succeeded or replaced from time to time.

     “Base Rate” means, for any day, the rate per annum equal to the greater of (a) the Federal
Funds Rate in effect on such day plus 1/2 of 1% or (b) the Prime Rate in effect on

 - 3 - 

 

such day. Any change in the Base Rate due to a change in the Prime Rate or the Federal Funds Rate shall be
effective on the effective date of such change in the Prime Rate or the Federal Funds Rate,
respectively.

     “Base Rate Loan” means a Loan bearing interest based on a rate determined by reference to the
Base Rate.

     “BOP” means Brandywine Operating Partnership, L.P., a Delaware limited partnership, together
with any successors and permitted assigns.

     “Borrowers” means BRT and BOP and “Borrower” means either one of them.

     “BRT” means Brandywine Realty Trust, a Maryland real estate investment trust, together with
any successors and permitted assigns.

     “Business Day” means any day other than a Saturday, a Sunday, a legal holiday or a day on
which banking institutions are authorized or required by law or other governmental action to close
in New York, New York; provided that in the case of Eurodollar Loans, such day is also a day on
which dealings between banks are carried on in Dollar deposits in the London interbank market.

     “Calculation Date” has the meaning set forth in the definition of Applicable Percentage in
this Section 1.1.

     “Capital Expenditures” means all expenditures of the Borrowers and their Subsidiaries which,
in accordance with GAAP, would be classified as capital expenditures, including, without
limitation, Capital Leases.

     “Capital Lease” means, as applied to any Person, any lease of any property (whether real,
personal or mixed) by that Person as lessee which, in accordance with GAAP, is or should be
accounted for as a capital lease on a balance sheet of that Person.

     “Capital Percentage” means, with respect to the interest of a Borrower or one of its
Subsidiaries in another Person, the percentage interest of such Person based on the aggregate
amount of net capital contributed by such Borrower or such Subsidiary in such Person at the time of
determination relative to all capital contributions made in such Person at such time of
determination.

     “Capitalization Rate” means 7.50%.

     “Cash Equivalents” means (a) securities issued or directly and fully guaranteed or insured by
the United States of America or any agency or instrumentality thereof (provided that the full faith
and credit of the United States of America is pledged in support thereof) having maturities of not
more than twelve months from the date of acquisition, (b) Dollar denominated time and demand
deposits and certificates of deposit

 - 4 - 

 

of (i) any Lender or any of its Affiliates, (ii) any domestic
commercial bank having capital and surplus in excess of $500,000,000 or (iii) any bank whose
short-term commercial paper rating from S&P is at least A-1 or the equivalent thereof or from
Moody’s is at least P-1 or the equivalent thereof (any such bank being an “Approved Bank”), in each
case with maturities of not more than 270 days from the date of acquisition, (c) commercial paper
and variable or fixed rate notes issued by any Approved Bank (or by the parent company thereof) or any variable rate notes issued by, or
guaranteed by, any domestic corporation rated A-1 (or the equivalent thereof) or better by S&P or
P-1 (or the equivalent thereof) or better by Moody’s and maturing within six months of the date of
acquisition, (d) repurchase agreements with a bank or trust company (including any of the Lenders)
or securities dealer having capital and surplus in excess of $500,000,000 for direct obligations
issued by or fully guaranteed by the United States of America in which a Borrower or one of its
Subsidiaries shall have a perfected first priority security interest (subject to no other Liens)
and having, on the date of purchase thereof, a fair market value of at least 100% of the amount of
the repurchase obligations and (e) Investments, classified in accordance with GAAP as current
assets, in money market investment programs registered under the Investment Company Act of 1940, as
amended, which are administered by financial institutions having capital of at least $500,000,000
and the portfolios of which are limited to investments of the character described in the foregoing
subdivisions (a) through (d).

     “Change of Control” means any of the following events:

     (a) any “person” or “group” (within the meaning of Section 13(d) or 14(d) of the
Exchange Act) has become, directly or indirectly, the “beneficial owner” (as defined in
Rules 13d-3 and 13d-5 under the Exchange Act, except that a Person shall be deemed to have
“beneficial ownership” of all shares that any such Person has the right to acquire, whether
such right is exercisable immediately or only after the passage of time or the occurrence
of any contingency), by way of merger, consolidation or otherwise, of 20% or more of the
voting power of BRT on a fully-diluted basis, after giving effect to the conversion and
exercise of all outstanding warrants, options and other securities of BRT convertible into
or exercisable for voting power of BRT (whether or not such securities are then currently
convertible or exercisable); or

     (b) during any period of up to twelve (12) consecutive months commencing on or after
the Closing Date, individuals who were trustees of BRT at the beginning of such period (the
“Continuing Trustees”), plus any new trustees whose election or appointment was approved by
a majority of the Continuing Trustees then in office, shall cease for any reason to
constitute a majority of the Board of Trustees of BRT; or

     (c) BRT fails to directly own at least 75% of the aggregate ownership interests in BOP
(giving effect to any convertible interests with respect thereto).

 - 5 - 

 

     “Closing Date” means the date hereof.

     “Code” means the Internal Revenue Code of 1986, as amended, and any successor statute thereto,
as interpreted by the rules and regulations issued thereunder, in each case as in effect from time
to time. References to sections of the Code shall be construed also to refer to any successor
sections.

     “Combined Parties” means the Borrowers and their Subsidiaries and all joint ventures or
partnerships to which a Borrower or one of its Subsidiaries is a party.

     “Commitments” means, with respect to any Lender, the obligations of such Lender to make Loans
pursuant to the terms and conditions of this Credit Agreement, and which shall not exceed the
principal amount set forth opposite such Lender’s name on Exhibit 1.1(a) hereto or in the
Assignment and Acceptance by which it became a Lender, as modified from time to time pursuant to
the terms of this Credit Agreement or to give effect to any applicable Assignment and Acceptance,
and “Commitments” means the aggregate principal amount of the Commitments of all the Lenders, the
initial maximum amount of which shall be $150,000,000.

     “Commitment Percentage” means, for each Lender, the percentage identified as its Commitment
Percentage on Exhibit 1.1(a), as such percentage may be modified in connection with any assignment
made in accordance with the provisions of Section 11.3.

     “Committed Amount” means $150,000,000, as the same may be permanently reduced in accordance
with Section 2.1(e) or increased from time to time pursuant to Section 2.7.

     “Construction-in-Process” means a Property or portion thereof on which construction of
improvements (excluding tenant improvements) has commenced and is proceeding to completion in the
ordinary course but has not yet been completed (as such completion shall be evidenced by a
temporary or permanent certificate of occupancy permitting use of such Property or portion thereof
by the general public). Any such Property or portion thereof shall be treated as
Construction-in-Process until the earlier of (i) the date that is 12 months from the date of
completion (as evidenced by a certificate of occupancy permitting use of such Property or portion
thereof by the general public) or (ii) the date after completion on which the Borrowers make a
one-time election (by written notice to the Administrative Agent in the certificate delivered
pursuant to Section 7.1(c)) to no longer treat such Property or portion thereof as
Construction-in-Process.

     “Continuing Trustees” has the meaning set forth in the definition of Change of Control.

     “Credit Documents” means this Credit Agreement, the Notes, each Guaranty (if any), any Notice
of Borrowing, any Notice of Continuation/Conversion and all other

 - 6 - 

 

related agreements and documents issued or delivered hereunder or thereunder or pursuant hereto or thereto.

     “Credit Parties” means the Borrowers and any Guarantors and “Credit Party” means any one of
them.

     “Debt Payments” means, for any period, for the Combined Parties, the sum of (a) Interest
Expense for such period plus (b) all payments of principal and any required prepayments on Funded
Debt of the Combined Parties (other than balloon payments) for such period, ending on the date of
determination (including the principal component of payments due on Capital Leases during the applicable period ending on the date of
determination).

     “Default” means any event, act or condition which with notice or lapse of time, or both, would
constitute an Event of Default.

     “Defaulting Lender” means, at any time, any Lender that (a) has failed to make a Loan or
purchase a Participation Interest required pursuant to the terms of this Credit Agreement (but only
for so long as such Loan is not made or such Participation Interest is not purchased), (b) has
failed to pay to the Administrative Agent or any Lender an amount owed by such Lender pursuant to
the terms of this Credit Agreement (but only for so long as such amount has not been repaid) or (c)
has been deemed insolvent or has become subject to a bankruptcy or insolvency proceeding or to a
receiver, trustee or similar official.

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

     “Effective Date” means the date, as specified by the Administrative Agent, on which the
conditions set forth in Section 5.1 and Section 5.2 shall have been fulfilled (or waived in the
sole discretion of the Lenders) and on which the Loans shall have been made, which date is expected
to be October 19, 2007.

     “Eligible Assignee” means (a) any Lender or any Affiliate of a Lender; (b) a commercial bank
having total assets in excess of $5,000,000,000; (c) the central bank of any country which is a
member of the Organization for Economic Cooperation and Development; or (d) a finance company or
other financial institution reasonably acceptable to the Administrative Agent, which is regularly
engaged in making, purchasing or investing in loans and having total assets in excess of
$500,000,000 or is otherwise acceptable to the Administrative Agent. Neither a Borrower nor any
Affiliate of the Borrowers shall qualify as an Eligible Assignee.

     “Eligible Cash 1031 Proceeds” means the cash proceeds held by a “qualified intermediary” from
the sale of Property, which proceeds are intended to be used by such qualified intermediary to
acquire one or more “replacement properties” that are of

 - 7 - 

 

“like-kind” to such Property in an exchange that qualifies as a tax-free exchange under Section 1031 of the Code, and no portion of
which proceeds any Combined Party has the right to receive, pledge, borrow or otherwise obtain the
benefits of until such time as provided under the applicable “exchange agreement” (as such terms in
quotations are defined in Treasury Regulations Section 1.1031(k)-1(g)(4) (the “Regulations”)) or
until such exchange is terminated. Upon the cash proceeds no longer being held by such qualified
intermediary pursuant to the Regulations or otherwise no longer qualifying under the Regulations
for like-kind exchange treatment, such proceeds shall cease being Eligible Cash 1031 Proceeds.

     “Eligible Ground Lease” means a ground lease that (a) has a minimum remaining term of
twenty-five (25) years, including tenant controlled options, as of any date of
determination, (b) has customary notice rights, default cure rights, bankruptcy new lease
rights and other customary provisions for the benefit of a leasehold mortgagee or has equivalent
protection for a leasehold permanent mortgagee by a subordination to such leasehold permanent
mortgagee of the landlord’s fee interest, and (c) is otherwise acceptable for non-recourse
leasehold mortgage financing under customary prudent lending requirements. The Eligible Ground
Leases as of the date of this Credit Agreement are listed on Schedule EG.

     “Eligible Land” means undeveloped land which is zoned for commercial use and which is not
subject to a building moratorium or other restriction on construction.

     “Eligible Subsidiary” means any Subsidiary of the Borrowers which has no Recourse Indebtedness
and has not provided a guaranty of any other Funded Debt of the Borrowers.

     “Eligible Unencumbered Property Subsidiary” means an Eligible Subsidiary that owns or
ground-leases any Property that is treated as Unencumbered Property, Unencumbered
Construction-in-Process or Unencumbered Eligible Land under this Agreement.

     “Environmental Claim” means any investigation, written notice, violation, written demand,
written allegation, action, suit, injunction, judgment, order, consent decree, penalty, fine, lien,
proceeding, or written claim whether administrative, judicial or private in nature arising (a)
pursuant to, or in connection with, an actual or alleged violation of any Environmental Law, (b) in
connection with any Hazardous Material, (c) from any assessment, abatement, removal, remedial,
corrective, or other response action in connection with an Environmental Law or other order of a
Governmental Authority or (d) from any actual or alleged damage, injury, threat, or harm to health,
safety, natural resources, or the environment.

     “Environmental Laws” means any current or future legal requirement of any Governmental
Authority pertaining to (a) the protection of health, safety, and the indoor

 - 8 - 

 

or outdoor environment, (b) the conservation, management, or use of natural resources and wildlife, (c) the
protection or use of surface water and groundwater or (d) the management, manufacture, possession,
presence, use, generation, transportation, treatment, storage, disposal, release, threatened
release, abatement, removal, remediation or handling of, or exposure to, any hazardous or toxic
substance or material or (e) pollution (including any release to land surface water and
groundwater) and includes, without limitation, the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization
Act of 1986, 42 U.S.C. 9601 et seq., Solid Waste Disposal Act, as amended by the Resource
Conservation and Recovery Act of 1976 and Hazardous and Solid Waste Amendment of 1984, 42 U.S.C.
6901 et seq., Federal Water Pollution Control Act, as amended by the Clean Water Act of 1977, 33
U.S.C. 1251 et seq., Clean Air Act of 1966, as amended, 42 U.S.C. 7401 et seq., Toxic Substances
Control Act of 1976, 15 U.S.C. 2601 et seq., Hazardous Materials Transportation Act, 49 U.S.C. App.
1801 et seq., Occupational Safety and Health Act of 1970, as amended, 29 U.S.C. 651 et seq., Oil Pollution
Act of 1990, 33 U.S.C. 2701 et seq., Emergency Planning and Community Right-to-Know Act of 1986, 42
U.S.C. 11001 et seq., National Environmental Policy Act of 1969, 42 U.S.C. 4321 et seq., Safe
Drinking Water Act of 1974, as amended, 42 U.S.C. 300(f) et seq., any analogous implementing or
successor law, and any amendment, rule, regulation, order, or directive issued thereunder.

     “Equity Issuance” means any issuance by a Borrower or one of its Subsidiaries to any Person
(other than another Borrower or Subsidiary) of shares of its capital stock, preferred stock, common
or preferred shares of beneficial interest, partnership or membership interests or other equity
interests, including pursuant to the exercise of options or warrants or pursuant to the conversion
of any debt securities to equity; provided that the definition of Equity Issuance as used herein
shall not include (a) issuances of equity to employees or trustees of a Borrower or one of its
Subsidiaries to the extent such issuances either (i) arise from the Borrowers’ Employee Stock
Purchase Plan or Long-Term Incentive Plan approved by BRT’s shareholders or (ii) do not exceed
$2,000,000 in any one instance or $10,000,000, in the aggregate from and after the date hereof,
during the term of this Credit Agreement, or (b) issuances of common stock or common or preferred
shares of beneficial interests the proceeds of which are used for the sole purpose of conversion or
redemption of convertible preferred stock or perpetual preferred stock or preferred shares of
beneficial interests.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any
successor statute thereto, as interpreted by the rules and regulations thereunder, all as the same
may be in effect from time to time. References to sections of ERISA shall be construed also to
refer to any successor sections.

     “ERISA Affiliate” means an entity, whether or not incorporated, which is under common control
with a Borrower or any of its Subsidiaries within the meaning of Section 4001(a)(14) of ERISA, or
is a member of a group which includes a Borrower or any

 - 9 - 

 

Subsidiary of a Borrower and which is treated as a single employer under subsections (b) or (c) of Section 414 of the Code.

     “ERISA Event” means (i) with respect to any Plan, the occurrence of a Reportable Event or the
substantial cessation of operations (within the meaning of Section 4062(e) of ERISA); (ii) the
withdrawal of a Borrower, any Subsidiary of a Borrower or any ERISA Affiliate from a Multiple
Employer Plan during a plan year in which it was a substantial employer (as such term is defined in
Section 4001(a)(2) of ERISA), or the termination of a Multiple Employer Plan; (iii) the
distribution of a notice of intent to terminate or the actual termination of a Plan pursuant to
Section 4041(a)(2) or 4041A of ERISA; (iv) the institution of proceedings to terminate or the
actual termination of a Plan by the PBGC under Section 4042 of ERISA; (v) any event or condition
which might constitute grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Plan; (vi) the complete or partial withdrawal of a
Borrower, any Subsidiary of a Borrower or any ERISA Affiliate from a Multiemployer Plan; (vii) the
conditions for imposition of a lien under Section 302(f) of ERISA exist with respect to any Plan; or (viii) the adoption of an amendment to any Plan
requiring the provision of security to such Plan pursuant to Section 307 of ERISA.

     “Eurodollar Loan” means a Loan bearing interest based on a rate determined by reference to the
Adjusted Eurodollar Rate.

     “Eurodollar Rate” means, for the Interest Period for each Eurodollar Loan comprising part of
the same borrowing (including conversions, extensions and renewals), a per annum interest rate as
determined on the basis of the offered rates for deposits in Dollars, for the period of time
comparable to such Interest Period that appears on Reuters Screen LIBOR01 Page as of 11:00 a.m.
London time on the day that is two (2) Business Days preceding the first day of such Interest
Period; provided, however, if the rate described above does not appear on Reuters
Screen LIBOR01 Page on any applicable interest determination date or the Reuters service is
unavailable, the Eurodollar Rate for that date will be determined on the basis of the offered rates
for deposits in Dollars in an amount comparable to the principal amount of such Loan and for a
period of time comparable to such Interest Period which are offered by four major banks in the
London interbank market at approximately 11:00 a.m. London time, on the day that is two (2)
Business Days preceding the first day of such Interest Period as selected by Administrative Agent.
The principal London office of each of the four major London banks will be requested to provide a
quotation of its Dollar deposit offered rate. If at least two such quotations are provided, the
rate for that date will be the arithmetic mean of the quotations. If fewer than two quotations are
provided, the rate for that date will be determined on the basis of the rates quoted for loans in
Dollars to leading European banks in an amount comparable to the principal amount of such Loan and
for a period of time comparable to such Interest Period offered by major banks in New York City at
approximately 11:00 a.m. (New York City time), on the day that is two (2) Business Days preceding
the first day of such Interest Period. In the event that Administrative Agent is

 - 10 - 

 

unable to obtain any such quotation as provided above, it will be deemed that the Eurodollar Rate for a Eurodollar
Loan cannot be determined and the provisions of Section 3.10 shall apply. In the event that the
Board of Governors of the Federal Reserve System shall impose a Eurodollar Reserve Percentage with
respect to Eurodollar deposits of the Person serving as the Administrative Agent, then for any
period during which such Eurodollar Reserve Percentage shall apply, the Eurodollar Rate shall be
equal to the amount determined above divided by an amount equal to 1 minus the Eurodollar Reserve
Percentage.

     “Eurodollar Reserve Percentage” means, for any day, that percentage (expressed as a decimal)
which is in effect from time to time under Regulation D as the maximum reserve requirement
(including, without limitation, any basic, supplemental, emergency, special, or marginal reserves)
applicable with respect to Eurodollar liabilities as that term is defined in Regulation D (or
against any other category of liabilities that includes deposits by reference to which the interest
rate on Eurodollar Loans is determined) with respect to member banks of the Federal Reserve System,
whether or not any Lender has any Eurodollar liabilities subject to such reserve requirement at
that time. Eurodollar Loans shall be deemed to constitute Eurodollar liabilities and as such shall
be deemed subject to reserve requirements without benefits of credits for proration, exceptions or
offsets that may be available from time to time to a Lender. The Adjusted Eurodollar Rate shall be
adjusted automatically on and as of the effective date of any change in the Eurodollar Reserve
Percentage.

     “Event of Default” means any of the events or circumstances described in Section 9.1.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, modified, succeeded or
replaced from time to time, and the rules and regulations promulgated thereunder.

     “Extension of Credit” means, as to any Lender, the making of a Loan by such Lender (or a
participation therein by a Lender).

     “Federal Funds Rate” means, for any day, the rate per annum (rounded upward, at the discretion
of the Administrative Agent, to the nearest 1/100th of 1%) equal to the weighted average of the
rates on overnight Federal funds transactions with members of the Federal Reserve System arranged
by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the
Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the
Federal Funds Rate for such day shall be such rate on such transactions on the next preceding
Business Day and (b) if no such rate is so published on such next preceding Business Day, the
Federal Funds Rate for such day shall be the average rate quoted to the Administrative Agent on
such day on such transactions as determined by the Administrative Agent.

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     “Fee Letter” means that certain letter agreement, dated as of September 26, 2007 between the
Administrative Agent and BRT, as amended, modified, supplemented or replaced from time to time.

     “Fitch” means Fitch Inc. or any successor or assignee of the business of such company in the
business of rating securities.

     “Fixed Charge Coverage Ratio” means, for any period, the ratio of (a) Adjusted NOI for such
period to (b) the sum of Debt Payments for such period plus all dividends on preferred shares of
beneficial interest of BRT or preferred operating partnership units of BOP (not owned by BRT) for
such period plus any letter of credit fees for such period.

     “Funded Debt” means, without duplication, the sum of (a) all Indebtedness of the Combined
Parties for borrowed money, (b) all purchase money Indebtedness of the Combined Parties, (c) the
principal portion of all obligations of the Combined Parties under Capital Leases, (d) all
obligations, contingent or otherwise, relative to the face amount of all letters of credit (other
than letters of credit supporting trade payables in the ordinary course of business), whether or
not drawn, and banker’s acceptances issued for the account or upon the application of a Combined
Party (it being understood that, to the extent an undrawn letter of credit supports another
obligation constituting Indebtedness, in calculating aggregated Funded Debt only such other
obligation shall be included), (e) all Guaranty Obligations of the Combined Parties with respect to the indebtedness of another
Person of the types described in this definition, (f) all indebtedness of another Person of the
types described in this definition that is secured by a Lien on any property of the Combined
Parties whether or not such indebtedness has been assumed by a Combined Party, (g) the principal
balance outstanding under any synthetic lease, tax retention operating lease, off-balance sheet
loan or similar off-balance sheet financing product of a Combined Party where such transaction is
considered borrowed money indebtedness for tax purposes but is classified as an operating lease in
accordance with GAAP, (h) all obligations of the Combined Parties in respect of interest rate
protection agreements, foreign currency exchange agreements or other interest or exchange rate or
commodity price hedging agreements and (i) all take out loan commitments to the extent such take
out commitment is not supported by a financial commitment from a third party containing standard
terms and conditions; provided that Funded Debt shall not include intercompany items or trade
payables incurred in the ordinary course of business; and provided further that, for purposes of
calculating the Leverage Ratio, the Secured Debt Ratio, the Unsecured Debt limitation and the
Unencumbered Cash Flow Ratio, to the extent Funded Debt includes Indebtedness in respect of
Construction-in-Process, the amount of such Funded Debt shall be deemed to be the total
construction costs incurred for the Construction-in-Process as of such date. The calculation of
Funded Debt of the Combined Parties shall be subject to Section 1.4.

     “Funds From Operations”, when used with respect to any Person, shall have the meaning given to
such term in, and shall be calculated in accordance with, standards

 - 12 - 

 

promulgated by the National Association of Real Estate Investment Trusts in effect from time to time.

     “GAAP” means generally accepted accounting principles in the United States applied on a
consistent basis and subject to Section 1.3.

     “Governmental Authority” means any Federal, state, local or provincial court or governmental
agency, authority, instrumentality or regulatory body.

     “Guarantors” means any Persons who may from time to time execute a Guaranty, as required by
Section 7.12 or otherwise, together with their successors and assigns; in each case unless released
as a Guarantor pursuant to Section 8.5(b) or Section 11.19.

     “Guaranty” means the guaranty of payment provided by a Subsidiary of a Borrower in favor of
the Administrative Agent and the Lenders in the form of Exhibit 7.12.

     “Guaranty Obligations” means, with respect to any Person, without duplication, any obligations
(other than endorsements in the ordinary course of business of negotiable instruments for deposit
or collection) guaranteeing or intended to guarantee any Indebtedness of any other Person in any
manner, whether direct or indirect, and including without limitation any obligation, whether or not
contingent, (a) to purchase any such Indebtedness or other obligation or any property constituting
security therefor, (b) to advance or provide funds or other support for the payment or purchase of such Indebtedness or
obligation or to maintain working capital, solvency or other balance sheet condition of such other
Person (including, without limitation, maintenance agreements, comfort letters, take or pay
arrangements, put agreements or similar agreements or arrangements) for the benefit of the holder
of Indebtedness of such other Person, (c) to lease or purchase property, securities or services
primarily for the purpose of assuring the owner of such Indebtedness or (d) to otherwise assure or
hold harmless the owner of such Indebtedness or obligation against loss in respect thereof. The
amount of any Guaranty Obligation hereunder shall (subject to any limitations set forth therein) be
deemed to be an amount equal to the outstanding principal amount (or maximum principal amount, if
larger) of the Indebtedness in respect of which such Guaranty Obligation is made. It is understood
and agreed that for purposes of any “completion guaranty” provided by a Borrower or one of its
Subsidiaries, the amount of Indebtedness associated with such completion guaranty shall be none
unless such completion guaranty is enforced (or written notice of the intent to enforce such
completion guaranty has been received) at which time the Indebtedness associated with such
completion guaranty shall equal the remaining cost to complete the project plus ten percent until
such time as a certificate of occupancy is issued.

     “Hazardous Materials” means any substance, material or waste defined or regulated in or under
any Environmental Laws.

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     “Incentive Stock Plan” means the BRT Amended and Restated 1997 Long-Term Incentive Plan, as
amended from time to time, and any other equity incentive plan hereafter established by BRT or one
of its Subsidiaries pursuant to which awards of equity interests in BRT or such Subsidiary may be
made to employees of BRT or one of its Subsidiaries.

     “Indebtedness” of any Person means, without duplication, (a) all obligations of such Person
for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or
similar instruments, or upon which interest payments are customarily made, (c) all obligations of
such Person under conditional sale or other title retention agreements relating to property
purchased by such Person to the extent of the value of such property (other than customary
reservations or retentions of title under agreements with suppliers entered into in the ordinary
course of business), (d) all obligations of such Person issued or assumed as the deferred purchase
price of property or services purchased by such Person which would appear as liabilities on a
balance sheet of such Person, (e) all Indebtedness of others secured by (or for which the holder of
such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on, or
payable out of the proceeds of production from, property owned or acquired by such Person, whether
or not the obligations secured thereby have been assumed, (f) all Guaranty Obligations of such
Person, (g) the principal portion of all obligations of such Person under (i) Capital Leases and
(ii) any synthetic lease, tax retention operating lease, off-balance sheet loan or similar
off-balance sheet financing product of such Person where such transaction is considered borrowed
money indebtedness for tax purposes but is classified as an operating lease in accordance with
GAAP, (h) all obligations of such Person in respect of interest rate protection agreements, foreign currency exchange
agreements, or other interest or exchange rate or commodity price hedging agreements, (i) the
maximum amount of all performance and standby letters of credit issued or bankers’ acceptances
facilities created for the account or upon the application of such Person and, without duplication,
all drafts drawn thereunder (to the extent unreimbursed), (j) all preferred stock issued by such
Person and required by the terms thereof to be redeemed, or for which mandatory sinking fund
payments are due, by a fixed date; provided that Indebtedness shall not include preferred stock
which carries a defined term if its conversion or redemption occurs solely through the issuance of
additional equity or from the proceeds of an equity offering, (k) all obligations evidenced by take
out commitments, (l) the aggregate amount of uncollected accounts receivables of such Person
subject at such time to a sale of receivables (or similar transaction) regardless of whether such
transaction is effected without recourse to such Person or in a manner that would not be reflected
on the balance sheet of such Person in accordance with GAAP and (m) all obligations of such Person
to repurchase any securities which repurchase obligation is related to the issuance thereof,
including, without limitation, obligations commonly known as residual equity appreciation potential
shares or forward equity purchase contracts; provided, however, that Indebtedness shall not include
intercompany items or trade payables incurred in the ordinary course of business. Subject to
Section 1.4, the Indebtedness of any Person shall include the Indebtedness of any partnership or

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unincorporated joint venture in which such Person is legally obligated or has a reasonable
expectation of being liable with respect thereto.

     “Indenture” means the Indenture, First Supplemental Indenture and Second Supplemental
Indenture dated as of October 22, 2004, May 25, 2005 and October 4, 2006, respectively, among BOP,
as Issuer, BRT, as Parent Guarantor, and The Bank of New York, as Trustee.

     “Interest Expense” means, for any period, with respect to the Combined Parties, all net
interest expense, whether paid or accrued (including that portion applicable to Capital Leases in
accordance with GAAP) plus capitalized interest.

     “Interest Payment Date” means (a) as to Base Rate Loans, the last Business Day of each month
and the Maturity Date, (b) as to any Eurodollar Loan having an Interest Period of three months or
less, the last day of such Interest Period and the Maturity Date, and (c) as to any Eurodollar Loan
having an Interest Period longer than three months, the day which is three months after the first
day of such Interest Period, the last day of such Interest Period, and the Maturity Date.

     “Interest Period” means, as to Eurodollar Loans, a period of one, two or three months’
duration as the Borrowers may elect, commencing on the date of the borrowing (including, as
applicable, continuations thereof and conversions thereto); provided, however, (a) if any Interest
Period would end on a day which is not a Business Day, such Interest Period shall be extended to
the next succeeding Business Day (except that where the next succeeding Business Day falls in the
next succeeding calendar month, then on the next preceding Business Day), (b) no Interest Period
shall extend beyond the Maturity Date, and (c) where an Interest Period begins on a day for which there is no numerically
corresponding day in the calendar month in which the Interest Period is to end, such Interest
Period shall end on the last Business Day of such calendar month.

     “Interest Rate Hedges” has the meaning set forth in Section 7.13.

     “Investment” in any Person means (a) the acquisition (whether for cash, property, services,
assumption of Indebtedness, securities or otherwise) of assets, shares of capital stock, bonds,
notes, debentures, partnership interests, membership interests, joint ventures or other ownership
interests or other securities of such other Person or (b) any deposit with, or advance, loan or
other extension of credit to, such Person (other than deposits made in connection with the purchase
of equipment or other assets in the ordinary course of business) or (c) any other capital
contribution to or investment in such Person, including, without limitation, any Guaranty
Obligation (including any support for a letter of credit issued on behalf of such Person) incurred
for the benefit of such Person.

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     “Investment Grade Rating” means an Unsecured Senior Debt Rating of (a) BBB- or better from
S&P, (b) Baa3 or better from Moody’s or (c) BBB- or better from Fitch, as applicable.

     “Lender” means the Person serving as the Administrative Agent, any of the other financial
institutions party to this Credit Agreement, or any other Person which may provide an additional
Commitment and become a party to this Credit Agreement or becomes an assignee of any rights to a
Lender pursuant to Section 11.3, together with their successors and permitted assigns.

     “Leverage Ratio” means the ratio of (a) Funded Debt to (b) Total Asset Value.

     “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement, security
interest, encumbrance, lien (statutory or otherwise), preference, priority or charge of any kind,
including, without limitation, any agreement to give any of the foregoing, any conditional sale or
other title retention agreement, and any lease in the nature thereof.

     “Loan” or “Loans” means a Loan made by a Lender pursuant to Section 2.1 or Section 2.7;
provided, that if any such loan or loans (or portions thereof) are combined or subdivided pursuant
to a Notice of Conversion/Continuation, the term “Loan” shall refer to the combined principal
amount resulting from such combination or to each of the separate principal amounts resulting from
such subdivision, as the case may be.

     “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
operations, condition (financial or otherwise) or prospects of BRT, BOP or the Borrowers and their
Subsidiaries taken as a whole, (b) the ability of a Borrower to perform its respective obligations
under this Credit Agreement or any of the other Credit Documents, (c) the ability of a Guarantor to
perform its respective obligations under any of the other Credit Documents, unless the Guarantor
subject to such material adverse effect could be immediately released as a Guarantor in compliance
with Section 8.5(b), or (d) the validity or enforceability of this Credit Agreement, any of the other Credit
Documents, or the rights and remedies of the Lenders hereunder or thereunder taken as a whole.

     “Material Subsidiary” means any Eligible Unencumbered Property Subsidiary and any Subsidiary
of a Borrower which is a Guarantor.

     “Maturity Date” means October 18, 2010 or, if such date is extended by the Borrowers pursuant
to Section 3.5(b), the date to which the Maturity Date is so extended.

     “Moody’s” means Moody’s Investors Service, Inc., or any successor or assignee of the business
of such company in the business of rating securities.

 - 16 - 

 

     “Multiemployer Plan” means a Plan which is a multiemployer plan as defined in Section 3(37) or
Section 4001(a)(3) of ERISA.

     “Multiple Employer Plan” means a Plan (other than a Multiemployer Plan) in which a Borrower, a
Subsidiary of a Borrower or any ERISA Affiliate and at least one employer other than a Borrower, a
Subsidiary of a Borrower or any ERISA Affiliate are contributing sponsors.

     “Net Cash Proceeds” means, with respect to an Equity Issuance, the gross cash proceeds
received from such Equity Issuance minus actual transaction costs and discounts of issuance payable
to third parties in connection therewith.

     “Net Income” means, for any period, the net income for such period of the Combined Parties, as
determined in accordance with GAAP.

     “Net Worth” means, as of any date, the net worth of the Borrowers and their Subsidiaries on a
consolidated basis, as determined in accordance with GAAP.

     “NOI” means, for any period, an amount equal to (a) Net Income for such period (excluding the
effect of any extraordinary or other non-recurring gains or losses or other non-cash losses outside
the ordinary course of business) plus (b) an amount which in the determination of Net Income for
such period has been deducted for (i) proceeds to minority interests, (ii) income taxes, (iii)
depreciation and amortization, (iv) Interest Expense and (v) actual property management expense,
less (c) 3% of the total real estate revenue of the Combined Parties as an assumed property
management expense.

     “Non-Excluded Taxes” has the meaning set forth in Section 3.13.

     “Non-Recourse Indebtedness” means any Indebtedness: (a) under the terms of which the payee’s
remedies upon the occurrence of an event of default are limited to specific, identified assets of
the payor which secure such Indebtedness and (b) for the repayment of which neither a Borrower nor
any Subsidiary of a Borrower (other than a special purpose Subsidiary of a Borrower which owns such
assets) has any personal liability beyond the loss of such specified assets, except for liability
for fraud, material misrepresentation or misuse or misapplication of insurance proceeds, condemnation awards,
existence of hazardous wastes or other customary exceptions to non-recourse provisions.

     “Note” or “Notes” means the promissory notes of the Borrowers in favor of each of the Lenders
evidencing the Loans provided pursuant to Section 2.1 or Section 2.7, individually or collectively,
as appropriate, as such promissory notes may be amended, modified, supplemented, extended, renewed
or replaced from time to time and in the form of Exhibit 2.1(h).

 - 17 - 

 

     “Notice of Borrowing” means the request by the Borrowers for a Loan, in the form of Exhibit
2.1(c).

     “Notice of Continuation/Conversion” means a request by the Borrowers to continue an existing
Eurodollar Loan to a new Interest Period or to convert a Eurodollar Loan to a Base Rate Loan or to
convert a Base Rate Loan to a Eurodollar Loan, in the form of Exhibit 2.1(f).

     “Obligations” means, without duplication, all of the obligations, liabilities and indebtedness
of the Credit Parties to the Lenders and the Administrative Agent, whenever arising, under this
Credit Agreement, the Notes or any of the other Credit Documents to which a Credit Party is a
party, including without limitation the outstanding principal amount of the Loans.

     “Participation Interest” means the Extension of Credit by a Lender by way of a purchase of a
participation in any Loans as provided in Section 3.8.

     “PBGC” means the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of
Title IV of ERISA and any successor thereto.

     “Permitted Liens” means (a) Liens securing Obligations, (b) Liens for taxes not yet due or
Liens for taxes being contested in good faith by appropriate proceedings for which adequate
reserves determined in accordance with GAAP have been established (and as to which the property
subject to any such Lien is not yet subject to foreclosure, sale or loss on account thereof), (c)
Liens in respect of property imposed by law arising in the ordinary course of business such as
materialmens’, mechanics’, warehousemens’, carriers’, landlords’ and other nonconsensual statutory
Liens which are not yet due and payable or which are being contested in good faith by appropriate
proceedings for which adequate reserves determined in accordance with GAAP have been established
(and as to which the property subject to any such Lien is not yet subject to foreclosure, sale or
loss on account thereof); (d) Liens arising from good faith deposits in connection with or to
secure performance of tenders, bids, leases, government contracts, performance and return-of-money
bonds and other similar obligations incurred in the ordinary course of business (other than
obligations in respect of the payment of borrowed money), (e) Liens arising from good faith
deposits in connection with or to secure performance of statutory obligations and surety and appeal
bonds, (f) easements, rights-of-way, restrictions (including zoning restrictions), matters of plat,
minor defects or irregularities in title and other similar charges or encumbrances not, in any material respect, impairing the use of the
encumbered property for its intended purposes, (g) judgment Liens that would not constitute an
Event of Default, (h) Liens arising by virtue of any statutory or common law provision relating to
bankers’ liens, rights of setoff or similar rights as to deposit accounts or other funds maintained
with a creditor depository institution, (i) Liens in connection with Indebtedness permitted by
Section 8.1(c); provided that if such Lien is created with respect to an Unencumbered Property, the
Borrowers shall give the Administrative Agent

 - 18 - 

 

written notice of the creation of such Lien in
accordance with Section 7.15(b) (if applicable), and (j) Liens existing on the date hereof and
identified on Schedule 8.2; provided that no such Lien shall extend to any property other
than the property subject thereto on the Closing Date.

     “Person” means any individual, partnership, joint venture, firm, corporation, limited
liability company, association, trust or other enterprise (whether or not incorporated), or any
Governmental Authority.

     “Plan” means any employee benefit plan (as defined in Section 3(3) of ERISA) which is covered
by ERISA and with respect to which a Borrower, any Subsidiary of a Borrower or any ERISA Affiliate
is (or, if such plan were terminated at such time, would under Section 4069 of ERISA be deemed to
be) an “employer” within the meaning of Section 3(5) of ERISA.

     “Prentiss” means Prentiss Properties Trust, a Maryland real estate investment trust.

     “Pricing Level” means, based upon the Unsecured Senior Debt Rating of the Borrowers, the
corresponding category (I, II, III, or IV) within the Applicable Percentage table.

     “Prime Rate” means the per annum rate of interest announced publicly from time to time by the
Person that is the Administrative Agent at its principal offices (or such other principal office of
such Person as communicated in writing to the Borrowers and the Lenders) as its Prime Rate. Any
change in the interest rate resulting from a change in the Prime Rate shall become effective at the
opening of business on the day specified in the public announcement of such change. The Prime Rate
is a rate set by the Person that is the Administrative Agent based upon various factors including
such Person’s costs and desired return, general economic conditions and other factors, and is used
as a reference point for pricing some loans, which may be priced at, above or below such announced
rate.

     “Private Placement Notes” means the $113,000,000 4.34% Notes issued pursuant to that certain
Note Purchase Agreement dated as of November 14, 2004, as may be amended, restated or otherwise
modified from time to time.

     “Pro Forma Basis” means with respect to (a) the sale of a Property or the sale of an equity
interest in a Credit Party or Eligible Unencumbered Property Subsidiary, (b) the creation of a Lien
on a Property or (c) the acquisition of or Investment in a Property or other asset that is subject to Section 7.15, that such sale, creation of Lien, acquisition or
Investment shall be deemed to have occurred as of the first day of the four fiscal quarter period
ending as of the last day of the most recent fiscal quarter for which the Lenders have received the
financial information required by Section 7.1(b).

 - 19 - 

 

     “Properties” means all real properties owned or ground-leased by the Borrowers and their
Subsidiaries whether directly or through a joint venture investment.

     “Property Value” means Annualized Modified Adjusted NOI divided by the Capitalization Rate;
provided that (a) for any Property owned by a Borrower or a Subsidiary of a Borrower for fewer than
twelve (12) months (other than the Acquisition Properties), the Property Value of such Property
shall instead be its value at cost in accordance with GAAP and (b) from the Closing Date through
June 30, 2008, each of the Acquisition Properties shall be valued at its cost to such Borrower or
Subsidiary in accordance with GAAP.

     “Recourse Indebtedness” means any Indebtedness other than Non-Recourse Indebtedness.

     “Regulation D, O, T, U, or X” means Regulation D, O, T, U or X, respectively, of the Board of
Governors of the Federal Reserve System (or any successor body) as from time to time in effect and
any successor to all or a portion thereof.

     “REIT” means a real estate investment trust as defined in Sections 856-860 of the Code.

     “REIT Subsidiary” means a Subsidiary of the Borrowers that is a REIT.

     “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than
those events as to which the notice requirement has been waived by regulation.

     “Required Lenders” means, as of any date, the Lenders whose aggregate Commitments constitute
at least fifty-one percent (51%) of the aggregate Commitments of all Lenders, provided that on and
after the date that Commitments have expired or terminated pursuant to Section 2.1 or Section 9.2,
Required Lenders shall mean the Lenders whose aggregate Credit Exposures constitute at least
fifty-one percent (51%) of the aggregate Credit Exposures of all Lenders, and provided that the
Commitments (or the Credit Exposures) of any Defaulting Lenders shall be disregarded when
determining the Required Lenders.

     “Requirement of Law” means, as to any Person, the articles or certificate of incorporation and
by-laws or other organizational or governing documents of such Person, and any law, treaty, rule or
regulation or final, non-appealable determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such Person or to which any of its material
property is subject.

     “Revolving Credit Agreement” means the Amended and Restated Revolving Credit Agreement dated
as of June 29, 2007 among the Borrowers, JPMorgan Chase

 - 20 - 

 

Bank, N.A., as Administrative Agent, and the lenders party thereto, as the same may be
amended, modified or restated from time to time.

          “S&P” means Standard & Poor’s Ratings Group, a division of McGraw Hill, Inc., or any successor
or assignee of the business of such division in the business of rating securities.

          “Secured Debt” means all Funded Debt of the Combined Parties that is subject to a Lien in
favor of the creditor holding such Funded Debt; provided that any Funded Debt owed to the Lenders
hereunder shall be considered to be Unsecured Debt even if a Lien has been granted in favor of the
Lenders.

          “Secured Debt Ratio” means the ratio of (a) Secured Debt to (b) Property Value plus, to the
extent Secured Debt includes Funded Debt on Construction-in-Process, total construction costs
incurred as of such date with respect to such Construction-in-Process.

          “Significant Subsidiary” means any Eligible Unencumbered Property Subsidiary, any Subsidiary
of the Borrowers which is a Guarantor, and any other Subsidiary of the Borrowers which contributes
at least $25,000,000 to Total Asset Value.

          “Single Employer Plan” means any Plan which is covered by Title IV of ERISA, but which is not
a Multiemployer Plan or a Multiple Employer Plan.

          “Solvent” means, with respect to any Person as of a particular date, that on such date (a)
such Person is able to pay its debts and other liabilities, contingent obligations and other
commitments as they mature in the normal course of business, (b) such Person does not intend to,
and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay
as such debts and liabilities mature in their ordinary course, (c) such Person is not engaged in a
business or a transaction, and is not about to engage in a business or a transaction, for which
such Person’s assets would constitute unreasonably small capital after giving due consideration to
the prevailing practice in the industry in which such Person is engaged or is to engage, (d) the
fair value of the assets of such Person is greater than the total amount of liabilities, including,
without limitation, contingent liabilities, of such Person and (e) the present fair saleable 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. In computing the amount
of contingent liabilities at any time, it is intended that such liabilities will be computed at the
amount which, 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.

          “Subsidiary” means, as to any Person, (a) any corporation more than 50% of whose stock of any
class or classes having by the terms thereof ordinary voting power to elect a majority of the
directors of such corporation (irrespective of whether or not at the

-21-

 

time, any class or classes of stock of such corporation shall have or might have voting power
by reason of the lapse of time or the happening of any contingency) is at the time owned by such
Person directly or indirectly through Subsidiaries, and (b) any partnership, association, joint
venture, limited liability company, trust or other entity in which such Person directly or
indirectly through Subsidiaries has more than a 50% equity interest or 50% Capital Percentage at
any time.

          “Termination Event” means (a) with respect to any Single Employer Plan, the occurrence of a
Reportable Event or the substantial cessation of operations (within the meaning of Section 4062(e)
of ERISA); (b) the withdrawal of any Borrower or any of its Subsidiaries or any ERISA Affiliate
from a Multiple Employer Plan during a plan year in which it was a substantial employer (as such
term is defined in Section 4001(a)(2) of ERISA), or the termination of a Multiple Employer Plan;
(c) the distribution of a notice of intent to terminate or the actual termination of a Plan
pursuant to Section 4041(a)(2) or 4041A of ERISA; (d) the institution of proceedings to terminate
or the actual termination of a Plan by the PBGC under Section 4042 of ERISA; (e) any event or
condition which might reasonably constitute grounds under Section 4042 of ERISA for the termination
of, or the appointment of a trustee to administer, any Plan; or (f) the complete or partial
withdrawal of any Borrower or any of its Subsidiaries or any ERISA Affiliate from a Multiemployer
Plan.

          “Total Asset Value” means the sum, without duplication, of (i) Property Value plus (ii) all
unrestricted cash of the Combined Parties plus (iii) all Cash Equivalents of the Combined Parties
plus (iv) all unrestricted tenant security deposits held by the Combined Parties plus (v) the
aggregate of all amounts of the Combined Parties incurred and paid with respect to
Construction-in-Process and Eligible Land, which credit will be limited to 20% of Total Asset Value
in the aggregate and 15% of Total Asset Value for any single project or parcel, plus (vi) all notes
receivable of the Combined Parties valued at the lower of cost or market in accordance with GAAP
and which are not more than 30 days past due or otherwise in default, which credit will be limited
to 5% of Total Asset Value, plus (vii) all investments in (based on the actual cash investment in),
directly or indirectly, unconsolidated entities and joint ventures holding real estate assets,
which credit will be limited to 5.0% of Total Asset Value, plus (viii) Eligible Cash 1031 Proceeds,
plus (ix) the product of 5 multiplied by Net Income attributable to third-party property management
agreements for the most recent period of four (4) consecutive fiscal quarters, to the extent that
payments thereunder are not more than 30 days past due or otherwise in default, which credit will
be limited to 5% of Total Asset Value; provided that the value (determined as set forth above) of
all of investments in joint ventures (whether or not Subsidiaries) will be limited to 15% of Total
Asset Value in the aggregate.

          “Unencumbered Cash Flow Ratio” means the ratio of (a) Annualized Modified Adjusted NOI with
respect to Unencumbered Properties to (b) Interest Expense on Unsecured Debt for the twelve (12)
month period ending on the date of determination.

-22-

 

          “Unencumbered Construction-in-Process” means all Construction-in-Process that is (i)
wholly-owned by a Credit Party or an Eligible Subsidiary that is a Wholly-Owned Subsidiary of the
Borrowers, (ii) not subject to a Lien or negative pledge other than (a) nonconsensual Permitted
Liens and (b) Liens in favor of the Lenders to secure the Obligations, and (iii) not subject to a
significant environmental release, Environmental Claim or other violation of Environmental Laws.

          “Unencumbered Construction-in-Process and Eligible Land Value” means the sum of Unencumbered
Construction-in-Process and Unencumbered Eligible Land, in each case valued at the lower of cost or
market.

          “Unencumbered Eligible Land” means all Eligible Land that is (i) wholly-owned or leased under
an Eligible Ground Lease by a Credit Party or an Eligible Subsidiary that is a Wholly-Owned
Subsidiary of the Borrowers, (ii) not subject to a Lien or negative pledge other than (a)
nonconsensual Permitted Liens and the terms of any applicable Eligible Ground Lease and (b) Liens
in favor of the Lenders to secure the Obligations, and (iii) not subject to a significant
environmental release, Environmental Claim or other violation of Environmental Laws.

          “Unencumbered Properties” means all Properties that are (i) wholly-owned or leased under an
Eligible Ground Lease by a Credit Party or an Eligible Subsidiary that is a Wholly-Owned Subsidiary
of the Borrowers, (ii) not subject to a Lien or negative pledge other than (a) nonconsensual
Permitted Liens and (b) Liens in favor of the Lenders to secure the Obligations, (iii) improved
with a building that has received a certificate of occupancy, and (iv) not subject to a significant
environmental release, Environmental Claim or other violation of Environmental Laws.

          “Unencumbered Property Value” means the sum of aggregate Property Value with respect to all
Unencumbered Properties.

          “Unencumbered Value” means the sum, without duplication, of (i) Unencumbered Property Value,
plus (ii) Unencumbered Construction-in-Process and Eligible Land Value, plus (iii) the aggregate
amount of unrestricted cash or Cash Equivalents of the Combined Parties, plus (iv) Eligible Cash
1031 Proceeds, to the extent not subject to a Lien, plus (v) all notes receivable of the Combined
Parties valued at the lower of cost or market in accordance with GAAP and which are not more than
30 days past due or otherwise in default, to the extent not subject to a Lien, which credit will be
limited to 5% of Unencumbered Value; provided that (x) no Property shall account for more than 15%
of Unencumbered Value and (y) Unencumbered Construction-in-Process and Eligible Land Value shall
not account for more than 15% of Unencumbered Value.

          “Unsecured Debt” means the sum of all Funded Debt of the Combined Parties that was incurred,
and continues to be outstanding, without granting a Lien to the creditor holding such Funded Debt;
provided that all Funded Debt of the Combined Parties owing

-23-

 

to the Lenders under this Credit Agreement and the Revolving Credit Agreement shall be
considered to be Unsecured Debt even if a Lien has been granted in favor of the Lenders or the
lenders party to the Revolving Credit Agreement, as the case may be.

          “Unsecured Senior Debt Rating” means either (a) if BRT or BOP has issued unsecured, senior,
long term, non-credit enhanced debt, the debt rating provided by S&P, Moody’s or Fitch with respect
to such unsecured, senior, long term, non-credit enhanced debt, or (b) if BRT or BOP has not issued
unsecured, senior, long term, non-credit enhanced debt, the issuer rating for BRT or BOP provided
by Moody’s or Fitch or the corporate credit rating for BRT or BOP provided by S&P.

          “Wholly-Owned Subsidiary of the Borrowers” means a Subsidiary of a Borrower in which the
Borrowers directly or indirectly own 100% of the equity interests (excluding those equity interests
that are owned by other Persons in order to permit such Subsidiary to qualify as a REIT, so long as
the Borrowers directly or indirectly own at least 99% of the equity interests in such Subsidiary
and control decisions regarding the sale and financing of all Properties owned by such Subsidiary).

          1.2 Computation of Time Periods and Other Definition Provisions.

          For purposes of computation of periods of time hereunder, the word “from” means “from and
including” and the words “to” and “until” each mean “to but excluding.” References in this Credit
Agreement to “Articles”, “Sections”, “Schedules” or “Exhibits” shall be to Articles, Sections,
Schedules or Exhibits of or to this Credit Agreement unless otherwise specifically provided.
References in this Credit Agreement to “during the term of this Credit Agreement” shall mean the
period from the Effective Date to the earlier of the Maturity Date or the acceleration of the Loans
pursuant to Section 9.2.

          1.3 Accounting Terms.

          Except as otherwise expressly provided herein, all accounting terms used herein shall be
interpreted, and all financial statements and certificates and reports as to financial matters
required to be delivered to the Lenders hereunder shall be prepared, in accordance with GAAP
applied on a consistent basis, and excluding the effects of consolidation of investments in
non-wholly owned subsidiaries under Interpretation No. 46 of the Financial Accounting Standards
Board. All financial statements delivered to the Lenders hereunder shall be accompanied by a
statement from the Borrowers that GAAP has not changed since the most recent financial statements
delivered by the Borrowers to the Lenders or, if GAAP has changed, describing such changes in
detail and explaining how such changes affect the financial statements. All calculations made for
the purposes of determining compliance with this Credit Agreement shall (except as otherwise
expressly provided herein) be made by application of GAAP applied on a basis consistent with the
most recent annual or quarterly financial statements delivered

-24-

 

pursuant to Section 7.1 (or, prior to the delivery of the first financial statements pursuant
to Section 7.1, consistent with the financial statements described in Section 5.1(k)); provided,
however, if (a) the Borrowers shall object to determining such compliance on such basis at the time
of delivery of such financial statements due to any change in GAAP or the rules promulgated with
respect thereto or (b) the Administrative Agent or the Required Lenders shall so object in writing
within 60 days after delivery of such financial statements (or after the Lenders have been informed
of the change in GAAP affecting such financial statements, if later), then such calculations shall
be made on a basis consistent with the most recent financial statements delivered by the Borrowers
to the Lenders as to which no such objection shall have been made.

          1.4 Joint Venture Investments.

          For purposes of calculating the financial covenants in Section 7.2 (including the definitions
used therein), (a) NOI, Adjusted NOI, Annualized Modified Adjusted NOI, Property Value and Interest
Expense shall be calculated, to the extent applicable, to include the pro-rata share (as determined
by their respective percentage interests in the profits and losses of such joint venture) of
results attributable to the Borrowers and their Subsidiaries from joint ventures and (b)
Indebtedness and Funded Debt shall be calculated as follows: (i) if the Indebtedness of a joint
venture is recourse to such Borrower (or Subsidiary), then the amount of such Indebtedness or
Funded Debt that is recourse to such Borrower (or Subsidiary), without duplication, and (ii) if the
Indebtedness of such joint venture is not recourse to such Borrower (or Subsidiary), then such
Borrower’s (or Subsidiary’s) pro-rata share of such Indebtedness or Funded Debt as determined by
its percentage interest in the profits and losses of such joint venture. For purposes of this
Section 1.4, Indebtedness of a joint venture that is recourse to a Borrower or one of its
Subsidiaries solely as a result of such Borrower (or Subsidiary) being a partner or member in such
joint venture shall be treated as not recourse to such Borrower (or Subsidiary) as long as the only
assets owned by such Borrower (or Subsidiary) are its equity interest in such joint venture and any
contributed capital held to fund such equity interest.

SECTION 2.

CREDIT FACILITY

2.1 Loans.

          (a) Term Loan Commitment. Subject to the terms and conditions set forth in
this Credit Agreement, each Lender hereby severally and not jointly agrees to make a term
loan in a single draw in Dollars (the “Loan” and collectively, the “Loans”) to the
Borrowers on the Effective Date, in an amount equal to such Lender’s Commitment Percentage
of the principal amount requested by the Borrowers. The Loans may be subdivided into
different tranches, but the

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aggregate amount of the Loans to be made hereunder shall not exceed the Committed
Amount. The Loans shall be made by the Lenders simultaneously and proportionately to their
then respective Commitment Percentages, it being understood that no Lender shall be
responsible for any failure by any other Lender to perform its obligation to make a Loan
hereunder nor shall the Loans of any Lender be increased or decreased as a result of any
such failure. The Commitments shall expire on the earlier of (i) the date on which the
Loans are made and (ii) November 30, 2007.

          (b) [Reserved].

          (c) Method of Borrowing for Loans. By no later than 11:00 a.m. (i) one
Business Day prior to the date of the requested borrowing of Base Rate Loans or (ii) three
Business Days prior to the date of the requested borrowing of Eurodollar Loans, the
Borrowers shall submit an irrevocable written Notice of Borrowing in the form of Exhibit
2.1(c) to the Administrative Agent setting forth (A) the amount requested, (B) whether such
Loans shall be Base Rate Loans or Eurodollar Loans, (C) with respect to Eurodollar Loans,
the Interest Period applicable thereto, (D) the purpose of the proceeds of the requested
Loans, (E) a certification that the Borrowers have complied in all respects with Section
5.1 and Section 5.2 and (F) the date of borrowing.

          (d) Funding of Loans. Upon receipt of the Notice of Borrowing, the
Administrative Agent shall promptly inform the Lenders as to the terms thereof. Each Lender
shall make its Commitment Percentage of the requested Loans available to the Administrative
Agent by 1:00 p.m. on the date specified in the Notice of Borrowing by deposit, in Dollars,
of immediately available funds to the Administrative Agent at its principal office in New
York City, New York or at such other address as the Administrative Agent may designate in
writing. The amount of the requested Loans will then be made available to the Borrowers by
the Administrative Agent by crediting the account of the Borrowers on the books of such
office of the Administrative Agent, to the extent the amount of such requested Loans are
made available to the Administrative Agent.

          No Lender shall be responsible for the failure or delay by any other Lender in its
obligation to make Loans hereunder; provided, however, that the failure of any Lender to
fulfill its obligations hereunder shall not relieve any other Lender of its obligations
hereunder. Unless the Administrative Agent shall have been notified by any Lender prior to
the date of any Loan that such Lender does not intend to make available to the
Administrative Agent its portion of the Loans to be made on such date, the Administrative
Agent may assume that such Lender has made such amount available to the Administrative
Agent on the date of such Loans, and the Administrative Agent in reliance upon such
assumption, may (in its sole discretion but without any obligation to do so) make available
to the

-26-

 

Borrowers a corresponding amount. If such corresponding amount is not in fact made
available to the Administrative Agent, the Administrative Agent shall be able to recover
such corresponding amount from such Lender. If such Lender does not pay such corresponding
amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent
will promptly notify the Borrowers, and the Borrowers shall immediately pay such
corresponding amount to the Administrative Agent. The Administrative Agent shall also be
entitled to recover from such Lender or the Borrowers, as the case may be, interest on such
corresponding amount in respect of each day from the date such corresponding amount was
made available by the Administrative Agent to the Borrowers to the date such corresponding
amount is recovered by the Administrative Agent at a per annum rate equal to (i) from the
Borrowers at the applicable rate for such Loan pursuant to the Notice of Borrowing and (ii)
from such Lender at the Federal Funds Rate.

          (e) Reduction or Termination of Committed Amount. Upon at least three Business
Days’ notice to the Administrative Agent, the Borrowers shall have the right to permanently
terminate or reduce the aggregate amount of the Committed Amount at any time prior to the
date of borrowing of the Loans; provided that each partial reduction shall be in an
aggregate amount at least equal to $5,000,000 and in integral multiples of $1,000,000 above
such amount. Any reduction in (or termination of) the Committed Amount shall be permanent
and may not be reinstated. The Administrative Agent shall immediately notify the Lenders of
any reduction in the Committed Amount and each Lender’s Commitment shall be reduced pro
rata in accordance with each Lender’s Commitment Percentage.

          (f) Continuations and Conversions. The Borrowers shall have the option with
respect to any Loan, on any Business Day, to continue existing Eurodollar Loans for a
subsequent Interest Period, to convert Base Rate Loans into Eurodollar Loans, or to convert
Eurodollar Loans into Base Rate Loans; provided, however, that (i) each such continuation
or conversion must be requested by the Borrowers pursuant to a written Notice of
Continuation/Conversion, in the form of Exhibit 2.1(f), in compliance with the terms set
forth below, (ii) except as provided in Section 3.11, Eurodollar Loans may only be
continued or converted on the last day of the Interest Period applicable thereto, (iii)
Eurodollar Loans may not be continued nor may Base Rate Loans be converted into Eurodollar
Loans during the existence and continuation of a Default or Event of Default and (iv) any
request to continue a Eurodollar Loan that fails to comply with the terms hereof or any
failure to request a continuation of a Eurodollar Loan at the end of an Interest Period
shall result in a conversion of such Eurodollar Loan to a Base Rate Loan on the last day of
the applicable Interest Period. Each continuation or conversion must be requested by the
Borrowers no later than 11:00 a.m. (A) one Business Day prior

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to the date for a requested conversion of a Eurodollar Loan to a Base Rate Loan or (B)
three Business Days prior to the date for a requested continuation of a Eurodollar Loan or
conversion of a Base Rate Loan to a Eurodollar Loan, in each case pursuant to a written
Notice of Continuation/Conversion submitted to the Administrative Agent (which shall
promptly notify each of the Lenders) which shall set forth (x) whether the Borrowers wish
to continue or convert such Loans and (y) if the request is to continue a Eurodollar Loan
or convert a Loan to a Eurodollar Loan, the Interest Period applicable thereto.

          (g) Minimum Amounts/Restrictions on Loans. Each request for a borrowing,
conversion or continuation of a Loan shall be subject to the requirements that (i) each
Eurodollar Loan shall be in a minimum amount of $1,000,000 and in integral multiples of
$100,000 in excess thereof, (ii) each Base Rate Loan shall be in a minimum amount of
$500,000, and (iii) no more than eight Eurodollar Loans shall be outstanding at any one
time. For the purposes of this Section 2.1(g), all Eurodollar Loans with the same Interest
Periods beginning on the same date shall be considered as one Eurodollar Loan, but
Eurodollar Loans with different Interest Periods, even if they begin or end on the same
date, shall be considered as separate Eurodollar Loans.

          (h) Notes. The Loans made by each Lender shall be evidenced by a duly executed
promissory note of the Borrowers to each Lender in substantially the form of Exhibit
2.1(h).

2.2 [Reserved].

2.3 [Reserved].

2.4 Joint and Several Liability of the Borrowers.

          (a) Each of the Borrowers is accepting joint and several liability hereunder in
consideration of the financial accommodation to be provided by the Lenders under this
Credit Agreement, for the mutual benefit, directly and indirectly, of each of the Borrowers
and in consideration of the undertakings of each of the Borrowers to accept joint and
several liability for the obligations of each of them.

          (b) Each of the Borrowers jointly and severally hereby irrevocably and unconditionally
accepts, not merely as a surety but also as a co-debtor, joint and several liability with
the other Borrower with respect to the payment and performance of all of the Obligations
arising under this Credit Agreement and the other Credit Documents, it being the intention
of the parties hereto that all the Obligations shall be the joint and several obligations
of each of the Borrowers without preferences or distinction among them.

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          (c) If and to the extent that either of the Borrowers shall fail to make any payment
with respect to any of the Obligations as and when due or to perform any of the Obligations
in accordance with the terms thereof, then in each such event, the other Borrower will make
such payment with respect to, or perform, such Obligation. Each Borrower further agrees
that it shall have no right of subrogation, indemnity, reimbursement or contribution
against the other Borrower for amounts so paid under this Credit Agreement until such time
as the Lenders have been paid in full and all Commitments under this Credit Agreement have
been terminated.

          (d) The obligations of each Borrower under the provisions of this Section 2.4
constitute full recourse obligations of such Borrower, enforceable against it to the full
extent of its properties and assets.

          (e) Except as otherwise expressly provided herein, to the extent permitted by law,
each Borrower hereby waives notice of acceptance of its joint and several liability and of
all extensions of credit to the Borrowers by the Lenders, notice of occurrence of any
Default or Event of Default (except to the extent notice is expressly required to be given
pursuant to the terms of this Credit Agreement), or of any presentment or demand for any
payment under this Credit Agreement, notice of any action at any time taken or omitted by
the Administrative Agent or the Lenders under or in respect of any of the obligations
hereunder, any requirement of diligence and, generally, all demands, notices and other
formalities of every kind in connection with this Credit Agreement and the benefit of any
laws that exonerate or limit the liability of co-borrowers or sureties and any defenses
provided by those laws. Each Borrower hereby assents to, and waives notice of, any
extension or postponement of the time for the payment of any of the Obligations, the
acceptance of any partial payment thereon, any waiver, consent or other action or
acquiescence by the Administrative Agent or the Lenders at any time or times in respect of
any default by either Borrower in the performance or satisfaction of any term, covenant,
condition or provision of this Credit Agreement, any and all other indulgences whatsoever
by the Administrative Agent or the Lenders in respect of any of the obligations hereunder,
and the taking, addition, substitution or release, in whole or in part, at any time or
times, of any security for any of such obligations or the addition, substitution or
release, in whole or in part, of either Borrower. Without limiting the generality of the
foregoing, each Borrower assents to any other action or delay in acting or any failure to
act on the part of the Administrative Agent or the Lenders, including, without limitation,
any failure strictly or diligently to assert any right or to pursue any remedy or to comply
fully with applicable laws or regulations thereunder which might, but for the provisions of
this Section 2.4, afford grounds for terminating, discharging or relieving such Borrower,
in whole or in part, from any of its obligations under this Section 2.4, it being the
intention of each Borrower that, so long as any of the Obligations hereunder remain

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unsatisfied, the obligations of such Borrower under this Section 2.4 shall not be
discharged except by performance and then only to the extent of such performance. The
obligations of each Borrower under this Section 2.4 shall not be diminished or rendered
unenforceable by any winding up, reorganization, arrangement, liquidation, reconstruction
or similar proceeding with respect to either Borrower or a Lender. The joint and several
liability of the Borrowers hereunder shall continue in full force and effect
notwithstanding any absorption, merger, amalgamation or any other change whatsoever in the
name, membership, constitution or place of formation of either Borrower or any of the
Lenders.

          (f) The provisions of this Section 2.4 are made for the benefit of the Lenders and
their successors and assigns, and may be enforced by them from time to time against either
of the Borrowers as often as occasion therefor may arise and without requirement on the
part of the Lenders first to marshal any of its claims or to exercise any of its rights
against the other Borrower or to exhaust any remedies available to it against the other
Borrower or to resort to any other source or means of obtaining payment of any of the
Obligations hereunder or to elect any other remedy. The provisions of this Section 2.4
shall remain in effect until all the Obligations shall have been paid in full or otherwise
fully satisfied. If at any time, any payment, or any part thereof, made in respect of any
of the Obligations is rescinded or must otherwise be restored or returned by the Lenders
upon the insolvency, bankruptcy or reorganization of either of the Borrowers, or otherwise,
the provisions of this Section 2.4 will forthwith be reinstated and in effect as though
such payment had not been made.

          (g) Notwithstanding any provision to the contrary contained herein or in any of the
other Credit Documents, to the extent the obligations of either Borrower shall be
adjudicated to be invalid or unenforceable for any reason (including, without limitation,
because of any applicable state or federal law relating to fraudulent conveyances or
transfers) then the obligations of such Borrower hereunder shall be limited to the maximum
amount that is permissible under applicable law (whether federal or state and including,
without limitation, the Bankruptcy Code).

          2.5 Appointment of BOP.

          BRT hereby appoints BOP to act as its agent for all purposes under this Credit Agreement
(including, without limitation, with respect to all matters related to the borrowing and repayment
of Loans) and agrees that (i) BOP may execute such documents on behalf of BRT as BOP deems
appropriate in its sole discretion and BRT shall be obligated by all of the terms of any such
document executed on its behalf, (ii) any notice or communication delivered by the Administrative
Agent or the Lender to BOP shall be deemed delivered to BRT and (iii) the Administrative Agent or
the Lenders

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may accept, and be permitted to rely on, any document, instrument or agreement executed by BOP
on behalf of BRT.

          2.6 Non-Recourse.

          Notwithstanding anything herein to the contrary, no recourse shall be had against any past,
present or future shareholder, officer, director or trustee of BRT for any obligation of the Credit
Parties under the Credit Documents, or for any claim based thereon or otherwise in respect thereof;
provided, however, that this Section 2.6 shall not restrict or limit any claim against any such
Person arising out of or occurring with respect to fraud or any intentional misrepresentation or
any act or omission that is willful or wanton or constitutes gross negligence or willful
misconduct.

2.7 Incremental Commitments.

          (a) The Borrowers may, by written notice to the Administrative Agent on one occasion
during the period from the Closing Date to December 31, 2007, request incremental
Commitments in an amount not to exceed the aggregate amount of $50,000,000 (the
“Incremental Limit”) from one or more additional Lenders (which may include any
existing Lender) willing to provide such incremental Loans in their own discretion;
provided, that each incremental Lender shall be subject to the approval of the
Administrative Agent (which approval shall not be unreasonably withheld) unless such
incremental Lender is a Lender or an Affiliate of a Lender. Such notice shall set forth
(i) the amount of the incremental Commitments being requested, and (ii) the date on which
such incremental Commitments are requested to become effective (the “Increased Amount
Date”).

          (b) The Borrower and each incremental Lender shall execute and deliver to the
Administrative Agent such documentation as the Administrative Agent shall reasonably
specify to evidence the incremental Commitment of such incremental Lender. Each of the
parties hereto hereby agrees that, upon the effectiveness of any such documentation, this
Agreement shall be amended to the extent (but only to the extent) necessary to reflect the
existence and terms of the incremental Commitments and incremental Loans evidenced thereby
(including adjusting the Commitment Percentages), and new Notes shall be issued and the
Borrower shall make such borrowings without the consent of the Lenders other than those
Lenders with incremental Commitments. The fees payable by the Borrower upon any such
incremental Commitments shall be agreed upon by the Administrative Agent, the Lenders with
incremental Commitments and the Borrower at the time of such increase.

          Notwithstanding the foregoing, nothing in this Section 2.7 shall constitute or be deemed to
constitute an agreement by any Lender to increase its Commitments hereunder.

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          (c) Notwithstanding the foregoing, no incremental Commitment shall become effective
under this Section 2.7 unless (i) on the date of such effectiveness, the conditions set
forth in Section 5.2 shall be satisfied and the Administrative Agent shall have received a
certificate to that effect dated such date and executed by a financial officer of BRT, (ii)
the Administrative Agent shall have received customary legal opinions, board resolutions
and other customary closing certificates and documentation as required by the relevant
amendment or other documentation and, to the extent required by the Administrative Agent,
consistent with those delivered on the Effective Date under Section 5.1 and such additional
customary documents and filings as the Administrative Agent may reasonably require, and
(iii) the Borrowers shall be in pro forma compliance with the covenants set forth in
Section 7.2 after giving effect to such incremental Commitments, the Loans to be made
thereunder and the application of the proceeds therefrom as if made and applied on such
date.

          (d) Each of the parties hereto hereby agrees that the Administrative Agent may take
any and all action as may be reasonably necessary to ensure that all incremental Loans,
when originally made, are included in each borrowing of outstanding Loans on a pro rata
basis.

SECTION 3.

GENERAL PROVISIONS APPLICABLE TO LOANS

3.1 Interest.

          (a) Interest Rate. Subject to Section 3.1(b), all Base Rate Loans shall accrue
interest at the Base Rate. Subject to Section 3.1(b), all Eurodollar Loans shall accrue
interest at the Adjusted Eurodollar Rate.

          (b) Default Rate of Interest. Upon the occurrence, and during the continuance,
of an Event of Default, the principal of and, to the extent permitted by law, interest on
the Loans and any other amounts owing hereunder or under the other Credit Documents
(including without limitation fees and expenses) shall bear interest, payable on demand, at
a per annum rate equal to four percent (4%) plus the rate which would otherwise be
applicable (or if no rate is applicable, then the rate for Base Rate Loans plus four
percent (4%) per annum); provided that unless the Loans have been accelerated, interest,
including the default rate of interest, shall only be due and payable on the Interest
Payment Dates.

          (c) Interest Payments. Interest on Loans shall be due and payable in arrears
on each Interest Payment Date. If an Interest Payment Date falls on a date which is not a
Business Day, such Interest Payment Date shall be deemed to be the succeeding Business Day,
except that in the case of Eurodollar Loans where

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the succeeding Business Day falls in the succeeding calendar month, such Interest
Payment Date shall be the preceding Business Day.

3.2 Place and Manner of Payments.

          All payments of principal, interest, fees, expenses and other amounts to be made by a Borrower
under this Credit Agreement shall be made by such Borrower unconditionally and without deduction
for any counterclaim, defense, recoupment or setoff and received not later than 2:00 p.m. on the
date when due, in Dollars and in immediately available funds, to the Administrative Agent at its
offices in Philadelphia, Pennsylvania. Payments received after such time shall be deemed to have
been received on the next Business Day. The Borrowers shall, at the time they make any payment
under this Credit Agreement, specify to the Administrative Agent the Loans, fees or other amounts
payable by the Borrowers hereunder to which such payment is to be applied (and in the event that
they fail to specify, or if such application would be inconsistent with the terms hereof, the
Administrative Agent shall, subject to Section 3.7, distribute such payment to the Lenders in such
manner as the Administrative Agent may deem appropriate). The Administrative Agent will distribute
any such payment to the Lenders on the day received if such payment is received prior to 2:00 p.m.;
otherwise the Administrative Agent will distribute such payment to the Lenders on the next
succeeding Business Day. Whenever any payment hereunder shall be stated to be due on a day which
is not a Business Day, the due date thereof shall be extended to the next succeeding Business Day
(subject to accrual of interest and fees for the period of such extension), except that in the case
of Eurodollar Loans, if the extension would cause the payment to be made in the next following
calendar month, then such payment shall instead be made on the next preceding Business Day.

3.3 Prepayments.

          (a) Voluntary Prepayments. The Borrowers shall have the right to prepay the
Loans, in whole or in part from time to time without premium or penalty; provided, however,
that (i) Eurodollar Loans may only be prepaid on three Business Days’ prior written notice
to the Administrative Agent and any prepayment of Eurodollar Loans will be subject to
Section 3.14, (ii) (x) in the case of Eurodollar Loans, each such partial prepayment shall
be in the minimum principal amount of $1,000,000 and integral multiples of $100,000 in
excess thereof, or (y) in the case of Base Rate Loans, each such partial prepayment shall
be in the minimum principal amount of $500,000 and integral multiples of $100,000 in excess
thereof. Amounts prepaid pursuant to this Section 3.3(a) may not be reborrowed.

          (b) Mandatory Prepayments. If at any time after the Closing Date a Change of
Control shall occur (the date on which such Change of Control occurs being the “Prepayment
Date”), the Commitments shall terminate and reduce to

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zero and the Borrowers shall immediately prepay the Loans on the Prepayment Date as if
the Prepayment Date were the Maturity Date. The Borrowers shall make such prepayment on
the Prepayment Date together with all accrued interest on the amount prepaid and any unpaid
fees and expenses that are due and owing. Amounts prepaid pursuant to this Section 3.3(b)
may not be reborrowed.

          (c) Application of Prepayments. All amounts paid pursuant to Section 3.3(a)
shall be applied as directed by the Borrowers. All amounts paid pursuant to Section 3.3(a)
the application of which has not been directed by the Borrowers and all amounts required to
be paid pursuant to Section 3.3(b) shall be applied first to Base Rate Loans, then to
Eurodollar Loans in direct order of Interest Period maturities. All prepayments hereunder
shall be subject to Section 3.14; provided that prepayments required to be made pursuant to
Section 3.3(b) that repay a Eurodollar Loan within 30 days of the last day of its Interest
Period shall not be subject to Section 3.14.

3.4 Fees.

          (a) [Reserved].

          (b) Administrative Fees. The Borrowers agree to pay to the Administrative
Agent, for its own account, an annual fee as agreed to between the Borrowers and the
Administrative Agent in the Fee Letter.

3.5 Payment in full at Maturity; Extension of Maturity.

          (a) On the Maturity Date, the entire outstanding principal balance of all Loans,
together with accrued but unpaid interest and all other sums owing with respect thereto,
shall be due and payable in full, unless accelerated sooner pursuant to Section 9.2.

          (b) So long as no Default or Event of Default has occurred and is continuing, on two
occasions during the term of this Agreement the Borrowers may elect at least 15 days but no
more than 90 days prior to the then scheduled Maturity Date, to extend the Maturity Date
until the earlier of (x) one-year from the then scheduled Maturity Date and (y) the
maturity date of the Revolving Credit Agreement (the “Extension Date”) by providing written
notice of each such election to the Administrative Agent (which shall promptly notify each
of the Lenders). If on the then scheduled Maturity Date (i) no Default or Event of Default
exists and is continuing, (ii) the Borrowers pay to the Administrative Agent, for the pro
rata benefit of the Lenders, an extension fee equal to 0.15% of the then outstanding
principal amount of the Loans for each extension (which extension fee shall be pro-rated
for any extension of less than one year), and (iii) the Borrowers have given written notice
to the Administrative Agent of each such

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election to extend the Maturity Date within the time frame set forth in this Section
3.5(b), the Maturity Date shall be extended to such Extension Date.

3.6 Computations of Interest and Fees.

          (a) Except for Base Rate Loans bearing interest based on the Prime Rate, which shall
be calculated on the basis of a 365 or 366 day year as the case may be, all computations of
interest and fees hereunder shall be made on the basis of the actual number of days elapsed
over a year of 360 days. Interest shall accrue from and include the date of borrowing (or
continuation or conversion) but exclude the date of payment.

          (b) It is the intent of the Lenders and the Borrowers to conform to and contract in
strict compliance with applicable usury law from time to time in effect. All agreements
between the Lenders and the Credit Parties are hereby limited by the provisions of this
paragraph which shall override and control all such agreements, whether now existing or
hereafter arising and whether written or oral. In no way, nor in any event or contingency
(including but not limited to prepayment or acceleration of the maturity of any
obligation), shall the interest taken, reserved, contracted for, charged, or received under
this Credit Agreement, under the Notes or otherwise, exceed the maximum nonusurious amount
permissible under applicable law. If, from any possible construction of any of the Credit
Documents or any other document, interest would otherwise be payable in excess of the
maximum nonusurious amount, any such construction shall be subject to the provisions of
this paragraph and such interest shall be automatically reduced to the maximum nonusurious
amount permitted under applicable law, without the necessity of execution of any amendment
or new document. If any Lender shall ever receive anything of value which is characterized
as interest on the Loans under applicable law and which would, apart from this provision,
be in excess of the maximum lawful amount, an amount equal to the amount which would have
been excessive interest shall, without penalty, be applied to the reduction of the
principal amount owing on the Loans and not to the payment of interest, or refunded to the
Borrowers or the other payor thereof if and to the extent such amount which would have been
excessive exceeds such unpaid principal amount of the Loans. The right to demand payment of
the Loans or any other indebtedness evidenced by any of the Credit Documents does not
include the right to receive any interest which has not otherwise accrued on the date of
such demand, and the Lenders do not intend to charge or receive any unearned interest in
the event of such demand. All interest paid or agreed to be paid to the Lenders with
respect to the Loans shall, to the extent permitted by applicable law, be amortized,
prorated, allocated, and spread throughout the full stated term (including any renewal or
extension) of the Loans so that the amount of interest on account of such indebtedness does
not exceed the maximum nonusurious amount permitted by applicable law.

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3.7 Pro Rata Treatment.

Except to the extent otherwise provided herein, each Loan borrowing, each payment or
prepayment of principal of any Loan, each payment of fees (other than fees payable pursuant
to Section 3.4), and each conversion or continuation of any Loan, shall (except as
otherwise provided in Section 3.11) be allocated pro rata among the Lenders in accordance
with the respective Commitment Percentages of the Lenders (or, if the Commitments of the
Lenders have expired or been terminated, in accordance with the respective principal
amounts of the outstanding Loans and Participation Interests of the Lenders); provided
that, if any Lender shall have failed to pay its applicable pro rata share of any Loan,
then any amount to which such Lender would otherwise be entitled pursuant to this Section
3.7 shall instead be payable to the Administrative Agent until the share of such Loan not
funded by such Lender has been repaid; provided further, that in the event any amount paid
to any Lender pursuant to this Section 3.7 is rescinded or must otherwise be returned by
the Administrative Agent, each Lender shall, upon the request of the Administrative Agent,
repay to the Administrative Agent the amount so paid to such Lender, with interest for the
period commencing on the date such payment is returned by the Administrative Agent until
the date the Administrative Agent receives such repayment at a rate per annum equal to,
during the period to but excluding the date two Business Days after such request, the
Federal Funds Rate, and thereafter, at the Base Rate plus two percent (2%) per annum.

3.8 Sharing of Payments.

          The Lenders agree among themselves that, except to the extent otherwise provided herein, in
the event that any Lender shall obtain payment in respect of any Loan or any other obligation owing
to such Lender under this Credit Agreement through the exercise of a right of setoff, banker’s lien
or counterclaim, or pursuant to a secured claim under Section 506 of the Bankruptcy Code or other
security or interest arising from, or in lieu of, such secured claim, received by such Lender under
any applicable bankruptcy, insolvency or other similar law or otherwise, or by any other means
(other than in connection with an assignment pursuant to Section 3.15 or Section 11.3), in excess
of its pro rata share of such payment as provided for in this Credit Agreement, such Lender shall
promptly pay in cash or purchase from the other Lenders a participation in such Loans and other
obligations in such amounts, and make such other adjustments from time to time, as shall be
equitable to the end that all Lenders share such payment in accordance with their respective
ratable shares as provided for in this Credit Agreement. The Lenders further agree among themselves
that if payment to a Lender obtained by such Lender through the exercise of a right of setoff,
banker’s lien, counterclaim or other event as aforesaid shall be rescinded or must otherwise be
restored, each Lender which shall have shared the benefit of such payment shall, by payment in cash
or a repurchase of a participation theretofore sold, return its share of that benefit (together
with its share of

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any accrued interest payable with respect thereto) to each Lender whose payment shall have
been rescinded or otherwise restored. The Borrowers agree that any Lender so purchasing such a
participation may, to the fullest extent permitted by law, exercise all rights of payment,
including setoff, banker’s lien or counterclaim, with respect to such participation as fully as if
such Lender were a holder of such Loan or other obligation in the amount of such participation.
Except as otherwise expressly provided in this Credit Agreement, if any Lender shall fail to remit
to the Administrative Agent or any other Lender an amount payable by such Lender to the
Administrative Agent or such other Lender pursuant to this Credit Agreement on the date when such
amount is due, such payments shall be made together with interest thereon for each date from the
date such amount is due until the date such amount is paid to the Administrative Agent or such
other Lender at a rate per annum equal to the Federal Funds Rate. If under any applicable
bankruptcy, insolvency or other similar law, any Lender receives a secured claim in lieu of a
setoff to which this Section 3.8 applies, such Lender shall, to the extent practicable, exercise
its rights in respect of such secured claim in a manner consistent with the rights of the Lenders
under this Section 3.8 to share in the benefits of any recovery on such secured claim.

3.9 Capital Adequacy.

          If, after the date hereof, any Lender has determined that the adoption or the becoming
effective of, or any change in, or any change by any Governmental Authority, central bank or
comparable agency charged with the interpretation or administration thereof in the interpretation
or administration of, any applicable law, rule or regulation regarding capital adequacy, or
compliance by such Lender, or its parent corporation, with any request or directive 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 (or
parent corporation’s) capital or assets as a consequence of its commitments or obligations
hereunder to a level below that which such Lender, or its parent corporation, could have achieved
but for such adoption, effectiveness, change or compliance (taking into consideration such Lender’s
(or parent corporation’s) policies with respect to capital adequacy), then, upon notice from such
Lender to the Borrowers and the Administrative Agent, the Borrowers shall be obligated to pay to
such Lender such additional amount or amounts as will compensate such Lender (or parent
corporation) on an after-tax basis (after taking into account applicable deductions and credits in
respect of the amount indemnified) for such reduction. Each determination by any such Lender of
amounts owing under this Section shall, absent manifest error, be conclusive and binding on the
parties hereto. This covenant shall survive the termination of this Credit Agreement and the
payment of the Loans and all other amounts payable hereunder.

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3.10 Inability To Determine Interest Rate.

          If prior to the first day of any Interest Period, the Administrative Agent shall have
determined in good faith (which determination shall be conclusive and binding upon the Borrowers)
that, by reason of circumstances affecting the relevant market, adequate and reasonable means do
not exist for ascertaining the Adjusted Eurodollar Rate or the Eurodollar Rate for such Interest
Period, the Administrative Agent shall give telecopy or telephonic notice thereof to the Borrowers
and the Lenders as soon as practicable thereafter, and will also give prompt written notice to the
Borrowers and the Lenders when such conditions no longer exist. If such notice is given (a) any
Eurodollar Loans requested to be made on the first day of such Interest Period shall be made as
Base Rate Loans and (b) any Loans that were to have been converted on the first day of such
Interest Period to or continued as Eurodollar Loans shall be converted to or continued as Base Rate
Loans. Until such notice has been withdrawn by the Administrative Agent, no further Eurodollar
Loans shall be made or continued as such, nor shall the Borrowers have the right to convert Base
Rate Loans to Eurodollar Loans.

3.11 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 occurring after the Closing Date
shall make it unlawful for any Lender to make or maintain Eurodollar Loans as contemplated by this
Credit Agreement, (a) such Lender shall promptly give written notice of such circumstances to the
Borrowers and the Administrative Agent (which notice shall be promptly withdrawn whenever such
circumstances no longer exist), (b) the commitment of such Lender hereunder to make Eurodollar
Loans, continue Eurodollar Loans as such and convert a Base Rate Loan to Eurodollar Loans shall
forthwith be cancelled and, until such time as it shall no longer be unlawful for such Lender to
make or maintain Eurodollar Loans, such Lender shall then have a commitment only to make a Base
Rate Loan when a Eurodollar Loan is requested and (c) such Lender’s Loans then outstanding as
Eurodollar Loans, if any, shall be converted automatically to Base Rate Loans on the respective
last days of the then current Interest Periods with respect to such Loans or 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 Borrowers shall pay to
such Lender such amounts, if any, as may be required pursuant to Section 3.14; provided that no
such payments shall be required if the conversion of a Eurodollar Loan occurs within 30 days of the
last day of the Interest Period of such Eurodollar Loan.

3.12 Requirements of Law.

          If the adoption of or any change in any Requirement of Law or in the interpretation or
application thereof applicable to any Lender, or compliance by any Lender with any request or
directive (whether or not having the force of law) from any central bank or other Governmental
Authority, in each case made subsequent to the Closing Date (or, if later, the date on which such
Lender becomes a Lender):

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          (a) shall subject such Lender to any tax of any kind whatsoever with respect to any
Eurodollar Loans made by it, its obligation to make Eurodollar Loans, or change the basis
of taxation of payments to such Lender in respect thereof (except for Non-Excluded Taxes
covered by Section 3.13 (including Non-Excluded Taxes imposed solely by reason of any
failure of such Lender to comply with its obligations (if any) under Section 3.13(b)) and
changes in taxes measured by or imposed upon the overall net income, or franchise tax
(imposed in lieu of such net income tax), of such Lender or its applicable lending office,
branch, or any Affiliate thereof);

          (b) shall impose, modify or hold applicable any reserve, special deposit, compulsory
loan or similar requirement against assets held by, deposits or other liabilities in or for
the account of, advances, loans or other extensions of credit by, or any other acquisition
of funds by, any office of such Lender which is not otherwise included in the determination
of the Adjusted Eurodollar Rate hereunder; or

          (c) shall impose on such Lender any other condition (excluding any tax of any kind
whatsoever);

and the result of any of the foregoing is to increase the cost to such Lender, by an amount which
such Lender deems to be material, of making, converting into, continuing or maintaining Loans or to
reduce any amount receivable hereunder in respect thereof, then, in any such case, upon notice to
the Borrowers from such Lender, through the Administrative Agent, in accordance herewith, the
Borrowers shall be obligated to promptly pay such Lender, upon its demand, any additional amounts
necessary to compensate such Lender on an after-tax basis (after taking into account applicable
deductions and credits in respect of the amount indemnified) for such increased cost or reduced
amount receivable, provided that, in any such case, the Borrowers may elect to convert the
Eurodollar Loans made by such Lender hereunder to Base Rate Loans by giving the Administrative
Agent at least one Business Day’s notice of such election, in which case the Borrowers shall
promptly pay to such Lender, upon demand, without duplication, such amounts, if any, as may be
required pursuant to Section 3.14. If any Lender becomes entitled to claim any additional amounts
pursuant to this Section 3.12, it shall provide prompt notice thereof to the Borrowers, through the
Administrative Agent, certifying (x) that one of the events described in this Section 3.12 has
occurred and describing in reasonable detail the nature of such event, (y) as to the increased cost
or reduced amount resulting from such event and (z) as to the additional amount demanded by such
Lender and a reasonably detailed explanation of the calculation thereof. Such a certificate as to
any additional amounts payable pursuant to this Section 3.12 submitted by such Lender, through the
Administrative Agent, to the Borrowers shall be conclusive and binding on the parties hereto in the
absence of manifest error. This covenant shall survive the termination of this Credit Agreement and
the payment of the Loans and all other amounts payable hereunder.

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3.13 Taxes.

          (a) Except as provided below in this Section 3.13, all payments made by the Borrowers
under this Credit Agreement and any Notes 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, now or hereafter
imposed, levied, collected, withheld or assessed by any court, or governmental body, agency
or other official, excluding taxes measured by or imposed upon the overall net income of
any Lender or its applicable lending office, or any branch or Affiliate thereof, and all
franchise taxes, branch taxes, taxes on doing business or taxes on the overall capital or
net worth of any Lender or its applicable lending office, or any branch or Affiliate
thereof, in each case imposed in lieu of net income taxes: (i) by the jurisdiction under
the laws of which such Lender, applicable lending office, branch or Affiliate is organized
or is located, or in which its principal executive office is located, or any nation within
which such jurisdiction is located or any political subdivision thereof; or (ii) by reason
of any connection between the jurisdiction imposing such tax and such Lender, applicable
lending office, branch or Affiliate other than a connection arising solely from such Lender
having executed, delivered or performed its obligations, or received payment under or
enforced, this Credit Agreement or any Notes. 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 Administrative Agent or any Lender
hereunder or under any Notes, (A) the amounts so payable to the Administrative Agent or
such Lender shall be increased to the extent necessary to yield to the Administrative Agent
or such Lender (after payment of all Non-Excluded Taxes) interest on any such other amounts
payable hereunder at the rates or in the amounts specified in this Credit Agreement and any
Notes, provided, however, that the Borrowers shall be entitled to deduct and withhold any
Non-Excluded Taxes and shall not be required to increase any such amounts payable to any
Lender that is not organized under the laws of the United States of America or a state
thereof if such Lender fails to comply with the requirements of paragraph (b) of this
Section 3.13 whenever any Non-Excluded Taxes are payable by the Borrowers, and (B) as
promptly as possible after request therefor the Borrowers shall send to the Administrative
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 Borrowers showing payment
thereof. If the Borrowers fail to pay any Non-Excluded Taxes when due to the appropriate
taxing authority or fail to remit to the Administrative Agent the required receipts or
other required documentary evidence, the Borrowers shall indemnify the Administrative Agent
and any Lender for any incremental taxes, interest or penalties that may become payable by
the Administrative Agent or any Lender as a result of any such failure. The agreements in
this subsection shall survive the

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termination of this Credit Agreement and the payment of the Loans and all other
amounts payable hereunder.

(b) Each Lender that is not incorporated under the laws of the United States of
America or a state thereof shall:

          (i) (A) on or before the date of any payment by the Borrowers under this
Credit Agreement or Notes to such Lender, deliver to the Borrowers and the
Administrative Agent (x) two duly completed copies of United States Internal
Revenue Service Form W8-BEN or W8-ECI, or successor applicable form, as the case
may be, certifying that it is entitled to receive payments under this Credit
Agreement and any Notes without deduction or withholding of any United States
federal income taxes and (y) an Internal Revenue Service Form W-8 or W-9, or
successor applicable form, as the case may be, certifying that it is entitled to an
exemption from United States backup withholding tax;

    (B) deliver to the Borrowers and the Administrative 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 Borrowers; and

    (C) obtain such extensions of time for filing and complete such forms
or certifications as may reasonably be requested by the Borrowers or the
Administrative Agent; or

          (ii) in the case of any such Lender that is not a “bank” within the meaning of
Section 881(c)(3)(A) of the Internal Revenue Code, such Lender shall (A) represent
to the Borrowers (for the benefit of the Borrowers and the Administrative Agent)
that it is not a bank within the meaning of Section 881(c)(3)(A) of the Internal
Revenue Code, (B) furnish to the Borrowers, on or before the date of any payment by
the Borrowers, with a copy to the Administrative Agent, two accurate and complete
original signed copies of Internal Revenue Service Form W-8, or successor
applicable form certifying to such Lender’s legal entitlement at the date of such
certificate to an exemption from U.S. withholding tax under the provisions of
Section 881(c) of the Internal Revenue Code with respect to payments to be made
under this Credit Agreement and any Notes (and to deliver to the Borrowers and the
Administrative Agent two further copies of such form on or before the date it
expires or becomes obsolete and after the occurrence of any event requiring a
change in the most recently provided form and, if necessary, obtain any extensions
of

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time reasonably requested by the Borrowers or the Administrative Agent for
filing and completing such forms), and (C) agree, to the extent legally entitled to
do so, upon reasonable request by the Borrowers, to provide to the Borrowers (for
the benefit of the Borrowers and the Administrative Agent) such other forms as may
be reasonably required in order to establish the legal entitlement of such Lender
to an exemption from withholding with respect to payments under this Credit
Agreement and any Notes.

Notwithstanding the above, if any change in treaty, law or regulation has occurred after
the date such Person becomes a Lender hereunder 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 Borrowers and the Administrative Agent then
such Lender shall be exempt from such requirements. Each Person that shall become a Lender
or a participant of a Lender pursuant to Section 11.3 shall, upon the effectiveness of the
related transfer, and if applicable, be required to provide all of the forms,
certifications and statements required pursuant to this subsection (b); provided that in
the case of a participant of a Lender, the obligations of such participant of a Lender
pursuant to this subsection (b) shall be determined as if such participant of a Lender were
a Lender except that such participant of a Lender shall furnish all such required forms,
certifications and statements to the Lender from which the related participation shall have
been purchased.

3.14 Compensation.

          Except as expressly set forth in Section 3.3(c), the Borrowers promise to indemnify each
Lender and to hold each Lender harmless from any loss or expense which such Lender may sustain or
incur as a consequence of (a) default by the Borrowers in making a borrowing of, conversion into or
continuation of Eurodollar Loans after the Borrowers have given a notice requesting the same in
accordance with the provisions of this Credit Agreement, (b) default by the Borrowers in making any
prepayment of a Eurodollar Loan after the Borrowers have given a notice thereof in accordance with
the provisions of this Credit Agreement and (c) any continuation, conversion, payment or prepayment
of Eurodollar Loans on a day which is not the last day of an Interest Period with respect thereto.
Such indemnification shall be calculated by the Administrative Agent and shall include, without
limitation, an amount equal to (i) the amount of interest which would have accrued on the amount so
prepaid, or not so borrowed, converted or continued, for the period from the date of such
prepayment or of such failure to borrow, convert or continue to the last day of the applicable
Interest Period (or, in the case of a failure to borrow, convert or continue, the Interest Period
that would have commenced on the date of such failure) in each case at the applicable rate of
interest for such Eurodollar Loans provided for herein minus (ii) the amount of interest which
would have accrued to such Lender on such amount by placing such amount on deposit for a comparable
period

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with leading banks in the interbank Eurodollar market. The agreements in this Section 3.14
shall survive the termination of this Credit Agreement and the payment of the Loans and all other
amounts payable hereunder. Notwithstanding the foregoing, any prepayment of a Eurodollar Loan made
hereunder (as a result of a mandatory requirement of this Credit Agreement) within thirty (30) days
of the end of the Interest Period with respect to such Eurodollar Loan, shall not be subject to
this Section 3.14.

          3.15 Mitigation; Mandatory Assignment.

          Each Lender shall use reasonable efforts to avoid or mitigate any increased cost or suspension
of the availability of an interest rate under Sections 3.9 through 3.14 inclusive to the greatest
extent practicable (including transferring the Loans to another lending office or one of its
Affiliates) unless, in the opinion of such Lender, such efforts would be likely to have an adverse
effect upon it. In the event a Lender makes a request to the Borrowers for additional payments in
accordance with Sections 3.9, 3.10, 3.11, 3.12, 3.13 or 3.14 or a Lender becomes a Defaulting
Lender, then, provided that no Default or Event of Default has occurred and is continuing at such
time, the Borrowers may, at their own expense (such expense to include any transfer fee payable to
the Administrative Agent under Section 11.3(b) and any expense pursuant to Section 3.14), and in
their sole discretion, require such Lender to transfer and assign in whole (but not in part),
without recourse (in accordance with and subject to the terms and conditions of Section 11.3(b)),
all of its interests, rights and obligations under this Credit Agreement to an Eligible Assignee
which shall assume such assigned obligations (which Eligible Assignee may be another Lender, if a
Lender accepts such assignment); provided that (a) such assignment shall not conflict with any law,
rule or regulation or order of any court or other governmental authority and (b) the Borrowers or
such assignee shall have paid to the assigning Lender in immediately available funds the principal
of and interest accrued to the date of such payment on the portion of the Loans hereunder held by
such assigning Lender and all other amounts owed to such assigning Lender hereunder, including
amounts owed pursuant to Sections 3.9 through 3.14. Notwithstanding such assignment, and without
limiting any other provision of this Credit Agreement, such assigning Lender shall continue to
benefit from the provisions of Sections 3.9, 3.12, 3.13 and 11.5 with respect to the period before
the effectiveness of such assignment.

SECTION 4.

[RESERVED]

SECTION 5.

CONDITIONS PRECEDENT

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          5.1 Closing Conditions.

          The obligation of the Lenders to enter into this Credit Agreement and make the initial
Extensions of Credit is subject to satisfaction of the following conditions:

          (a) Executed Credit Documents. Receipt by the Administrative Agent of duly
executed copies of: (i) this Credit Agreement; (ii) the Notes; and (iii) all other Credit
Documents required to be delivered on or before the Effective Date, each in form and
substance reasonably acceptable to the Administrative Agent in its sole discretion.

          (b) Partnership Documents. With respect to each Credit Party that is a
partnership, receipt by the Administrative Agent of the following:

          (i) Partnership Agreements. Certified copies of the partnership
agreement of such Credit Party, together with all amendments thereto.

          (ii) Certificates of Good Standing or Existence. A certificate of good
standing or existence for such Credit Party issued as of a recent date by its state
of organization and each other state where the failure to qualify or be in good
standing could have a Material Adverse Effect.

          (c) Corporate Documents. With respect to each Credit Party that is a
corporation, if applicable, receipt by the Administrative Agent of the following:

          (i) Charter Documents. Copies of the articles or certificates of
incorporation or other charter documents of such Credit Party certified to be true
and complete as of a recent date by the appropriate Governmental Authority of the
state or other jurisdiction of its incorporation and certified by a secretary or
assistant secretary of such Credit Party to be true and correct as of the Closing
Date.

          (ii) Bylaws. A copy of the bylaws of such Credit Party certified by a
secretary or assistant secretary of such Credit Party to be true and correct as of
the Closing Date.

          (iii) Good Standing. Copies of certificates of good standing,
existence or their equivalent with respect to such Credit Party certified as of a
recent date by the appropriate Governmental Authority of the state or other
jurisdiction of incorporation and each other jurisdiction in which the failure to
so qualify and be in good standing could have a Material Adverse Effect.

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          (d) Limited Liability Company Documents. With respect to each Credit Party
that is a limited liability company, if applicable, receipt by the Administrative Agent of
the following:

          (i) Certificate of Formation. A copy of the certificate of formation
of such Credit Party certified to be true and complete by the appropriate
Governmental Authority of the state or jurisdiction of its formation and certified
by the sole or managing member of such Credit Party to be true and correct as of
the Closing Date.

          (ii) Operating Agreement. A copy of the Operating Agreement of such
Credit Party certified by the sole or managing member of such Credit Party to be
true and correct as of the Closing Date.

          (iii) Good Standing. Copies of certificates of good standing,
existence or their equivalent with respect to such Credit Party certified as of a
recent date by the appropriate Governmental Authority of the state or other
jurisdiction of formation and each other jurisdiction in which the failure to so
qualify and be in good standing could have a Material Adverse Effect.

          (e) Trust Documents. With respect to BRT, receipt by the Administrative Agent
of the following:

          (i) Declaration of Trust. A copy of the Declaration of Trust of BRT
certified to be true and complete by the appropriate Governmental Authority of the
state or jurisdiction of its formation and certified by the secretary of BRT to be
true and correct as of the Closing Date.

          (ii) Bylaws. A copy of the Bylaws of BRT certified by the trustee of
BRT to be true and complete as of the Closing Date.

          (iii) Resolutions. Copies of the resolutions of the Board of Trustees
of BRT approving and adopting the Credit Documents to which it and each Credit
Party is a party, the transactions contemplated therein and authorizing execution
and delivery thereof by and on behalf of itself and each Credit Party.

          (iv) Good Standing. Copies of certificates of good standing, existence
or their equivalent with respect to BRT certified as of a recent date by the
appropriate Governmental Authorities of the state or other jurisdiction of
formation and each other jurisdiction in which the failure to so qualify and be in
good standing could have a Material Adverse Effect.

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          (v) Incumbency. An incumbency certificate with respect to each of the
Credit Parties, certified by a secretary or assistant secretary of BRT to be true
and correct as of the Closing Date.

(f) [Reserved]

(g) [Reserved]

(h) Opinion of Counsel. Receipt by the Administrative Agent of opinions (which
shall cover, among other things, authority, legality, validity, binding effect and
enforceability), satisfactory to the Administrative Agent, addressed to the Administrative
Agent and the Lenders and dated as of the Effective Date, from legal counsel to the Credit
Parties.

(i) Material Adverse Effect. There shall not have occurred a change since June
30, 2007 that has had or could reasonably be expected to have a Material Adverse Effect.

(j) Litigation. There shall not exist any pending or threatened action, suit,
investigation or proceeding in any court or before any arbitrator or Governmental Authority
against a Credit Party or any of its Subsidiaries that would have or would reasonably be
expected to have a Material Adverse Effect.

(k) Officer’s Certificate. The Administrative Agent shall have received a
certificate of the Borrowers on behalf of the Credit Parties as of the Closing Date stating
that (i) the Credit Parties and each of their Subsidiaries are in compliance with all
existing material financial obligations, (ii) no action, suit, investigation or proceeding
is pending or threatened in any court or before any arbitrator or Governmental Authority
that purports to affect a Credit Party or any transaction contemplated by the Credit
Documents, if such action, suit, investigation or proceeding could have or could be
reasonably expected to have a Material Adverse Effect, (iii) the financial statements and
information included in the Borrowers’ Form 10-K report for the year ended December 31,
2006 and the Form 10-Q Report for the quarter ended June 30, 2007 were prepared in good
faith and using reasonable assumptions and (iv) immediately after giving effect to this
Credit Agreement, the other Credit Documents and all the transactions contemplated herein
and therein to occur on such date, (A) each of the Credit Parties is Solvent, (B) no
Default or Event of Default exists, (C) all representations and warranties contained herein
and in the other Credit Documents are true and correct in all material respects, and (D)
the Credit Parties and their Subsidiaries are in compliance as of June 30, 2007, and will
be in compliance on a pro-forma basis as of the Effective Date and as of the date of the
consummation of the Acquisition, with each of the financial covenants set forth in Section
7.2.

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          (l) Fees and Expenses. Payment by the Borrowers of all fees and expenses owed
by them to the Lenders and the Administrative Agent, including, without limitation, payment
to the Administrative Agent of the fees set forth herein and in the Fee Letter.

          (m) Consents and Approvals. All governmental, shareholder, partner, member and
third-party consents and approvals necessary or, in the opinion of the Administrative
Agent, desirable in connection with the Extensions of Credit and the transactions
contemplated under the Credit Documents shall have been duly obtained and shall be in full
force and effect, and a copy of each such consent or approval shall have been delivered to
the Administrative Agent.

          (n) Absence of Guarantors for Other Debt. Receipt by the Administrative Agent
of officer’s certificates confirming the absence of guaranties provided by the Subsidiaries
of the Borrowers pursuant to the Indenture.

          (o) Other. Receipt by the Lenders of such other documents, instruments,
agreements or information as reasonably and timely requested by any Lender, including, but
not limited to, information regarding litigation, tax, accounting, labor, insurance,
pension liabilities (actual or contingent), real estate leases, material contracts, debt
agreements, property ownership and contingent liabilities of the Credit Parties and their
Subsidiaries.

5.2 Conditions to All Extensions of Credit.

In addition to the conditions precedent stated elsewhere herein, the Lenders shall not be
obligated to make Loans unless:

          (a) Delivery of Notice. The Borrowers shall have delivered a Notice of
Borrowing, duly executed and completed, by the time specified in Section 2.1.

          (b) Representations and Warranties. The representations and warranties made by
the Credit Parties in any Credit Document shall be true and correct in all material
respects at and as if made as of such date except to the extent they expressly and
exclusively relate to an earlier date.

          (c) No Default. No Default or Event of Default shall exist or be continuing
either prior to or after giving effect thereto.

          (d) Restrictions on Loans. After giving effect to the making of the requested
Loan, the Borrowers shall be in compliance with the terms of Section 2.1(g).

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          (e) No Legal Impediments. No law, regulation, order, judgment or decree of
any Governmental Authority shall, and the Administrative Agent shall not have received any
notice that litigation is pending or threatened which is likely to, (i) enjoin, prohibit or
restrain such Extension of Credit or (ii) impose or result in the imposition of a Material
Adverse Effect.

          The delivery of each Notice of Borrowing shall constitute a representation and
warranty by the Borrowers of the correctness of the matters specified in subsections (b),
(c), and, if applicable, (d) above.

SECTION 6.

REPRESENTATIONS AND WARRANTIES

          Each of the Borrowers hereby represents to the Administrative Agent and each Lender that:

          6.1 Financial Condition.

          The financial statements described in Section 5.1(k) and those delivered to the Lenders
pursuant to Section 7.1(a) and (b): (a) have been prepared in accordance with GAAP (subject, in the
case of quarterly financial statements, to changes resulting from audit and normal year-end audit
adjustments) and (b) present fairly the consolidated financial condition, results of operations and
cash flows of the Borrowers and their Subsidiaries as of such date and for such periods. Since
June 30, 2007, there has been no sale, transfer or other disposition by any Borrower or any of its
Subsidiaries of any material part of the business or property of the Borrowers and their
Subsidiaries, taken as a whole, and no purchase or other acquisition by any of them of any business
or property (including any capital stock or other equity interests of any other Person) material in
relation to the consolidated financial condition of the Borrowers and their Subsidiaries, taken as
a whole, in each case, which, is not (i) reflected in the most recent financial statements
described in Section 5.1(k) or delivered to the Lenders pursuant to Section 7.1 or in the notes
thereto or (ii) otherwise permitted by the terms of this Credit Agreement.

          6.2 No Material Change.

          Since June 30, 2007, there has been no development or event relating to or affecting a
Combined Party which has had or would be reasonably expected to have a Material Adverse Effect.

          6.3 Organization and Good Standing.

          Each Borrower and each Material Subsidiary (a) is either a partnership, a corporation, a
limited liability company or a REIT duly organized or formed, validly existing and in good standing
under the laws of the state (or other jurisdiction) of its

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organization or formation, (b) is duly qualified and in good standing as a foreign
partnership, a foreign corporation, a foreign limited liability company or a foreign REIT and
authorized to do business in every other jurisdiction where the failure to be so qualified, in good
standing or authorized would have or would reasonably be expected to have a Material Adverse Effect
and (c) has the power and authority to own its properties and to carry on its business as now
conducted and as proposed to be conducted.

          6.4 Due Authorization.

          Each Credit Party (a) has the power and authority to execute, deliver and perform this Credit
Agreement and the other Credit Documents to which it is a party and to incur the obligations herein
and therein provided for and to consummate the transactions contemplated herein and therein and (b)
is duly authorized, and has been authorized by all necessary action, to execute, deliver and
perform this Credit Agreement and the other Credit Documents to which it is a party and to
consummate the transactions contemplated herein and therein.

          6.5 No Conflicts.

          Neither the execution and delivery of the Credit Documents, nor the consummation of the
transactions contemplated herein and therein, nor the performance of or compliance with the terms
and provisions hereof and thereof by a Credit Party will (a) violate or conflict with any provision
of its or its Material Subsidiaries’ organizational or governing documents, (b) violate, contravene
or materially conflict with any Requirement of Law or any other law, regulation (including, without
limitation, Regulation U or Regulation X), order, writ, judgment, injunction, decree or permit
applicable to it or its Material Subsidiaries, (c) violate, contravene or conflict with contractual
provisions of, or cause an event of default under, any indenture, loan agreement, mortgage, deed of
trust, contract or other agreement or instrument to which it or any of its Material Subsidiaries is
a party or by which it or its Material Subsidiaries may be bound, the violation of which would have
or would be reasonably expected to have a Material Adverse Effect, or (d) result in or require the
creation of any Lien upon or with respect to its or its Material Subsidiaries’ properties.

          6.6 Consents.

          Except for consents, approvals, authorizations and orders that have been obtained, and
filings, registrations and qualifications that have been made, no consent, approval, authorization
or order of, or filing, registration or qualification with, any court or Governmental Authority or
third party in respect of any Credit Party is required in connection with the execution, delivery
or performance of this Credit Agreement or any of the other Credit Documents by such Credit Party
or the consummation of the transactions contemplated herein and therein.

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          6.7 Enforceable Obligations.

          This Credit Agreement and the other Credit Documents to which it is a party have been duly
executed and delivered and constitute legal, valid and binding obligations of each Credit Party
enforceable against such Credit Party in accordance with their respective terms, except as may be
limited by bankruptcy or insolvency laws or similar laws affecting creditors’ rights generally or
by general equitable principles.

          6.8 No Default.

          No Combined Party is in default in any respect under any contract, lease, loan agreement,
indenture, mortgage, security agreement or other agreement or obligation to which it is a party or
by which any of its properties is bound which default would have or would be reasonably expected to
have a Material Adverse Effect. No Default or Event of Default has occurred or exists except as
previously disclosed in writing to the Lenders.

          6.9 Ownership.

          Each Borrower and each of its Subsidiaries is the owner or ground-lessee of, and has good and
marketable fee or leasehold title to, all of its respective assets and none of such assets is
subject to any Lien other than Permitted Liens.

          6.10 Indebtedness.

          The Borrowers and their Subsidiaries have no Indebtedness except as otherwise permitted by
this Credit Agreement.

          6.11 Litigation.

          There are no actions, suits or legal, equitable, arbitration or administrative proceedings or
investigations, pending or, to the knowledge of any Borrower, threatened, against a Combined Party
which would have or would be reasonably expected to have a Material Adverse Effect.

          6.12 Taxes.

          Each Borrower, and each of its Subsidiaries, has filed, or caused to be filed, all tax returns
(federal, state, local and foreign) required to be filed and has paid (a) all amounts of taxes
shown thereon to be due (including interest and penalties) and (b) all other taxes, fees,
assessments and other governmental charges (including mortgage recording taxes, documentary stamp
taxes and intangibles taxes) owing by it, except for such taxes (i) which are not yet delinquent or
(ii) that are being contested in good faith and by proper proceedings, and against which adequate
reserves are being maintained in accordance with GAAP. No Borrower is aware of any material
proposed tax assessments against it or any of its Subsidiaries.

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     6.13 Compliance with Law.

     Each Combined Party is in compliance with all Requirements of Law and all other laws, rules,
regulations, orders and decrees (including without limitation Environmental Laws) applicable to it,
or to its properties, unless such failure to comply would not have or would not be reasonably
expected to have a Material Adverse Effect. No Requirement of Law would be reasonably expected to
cause a Material Adverse Effect.

     6.14 Compliance with ERISA.

     Except as would not result in or be reasonably expected to result in a Material Adverse
Effect:

     (a) During the five-year period prior to the date on which this representation is made
or deemed made: (i) no ERISA Event has occurred, and, to the best of each Borrower’s, each
Subsidiary of a Borrower’s and each ERISA Affiliate’s knowledge, no event or condition has
occurred or exists as a result of which any ERISA Event could reasonably be expected to
occur, with respect to any Plan; (ii) no “accumulated funding deficiency,” as such term is
defined in Section 302 of ERISA and Section 412 of the Code, whether or not waived, has
occurred with respect to any Plan; (iii) each Plan has been maintained, operated, and
funded in compliance with its own terms and in material compliance with the provisions of
ERISA, the Code, and any other applicable federal or state laws; and (iv) no Lien in favor
or the PBGC or a Plan has arisen or is reasonably likely to arise on account of any Plan.

     (b) The actuarial present value of all “benefit liabilities” (as defined in Section
4001(a)(16) of ERISA), whether or not vested, under each Single Employer Plan, as of the
last annual valuation date prior to the date on which this representation is made or deemed
made (determined, in each case, in accordance with Financial Accounting Standards Board
Statement 87, utilizing the actuarial assumptions used in such Plan’s most recent actuarial
valuation report), did not exceed as of such valuation date the fair market value of the
assets of such Plan.

     (c) No Borrower, Subsidiary of a Borrower or ERISA Affiliate has incurred, or, to the
best of each such party’s knowledge, is reasonably expected to incur, any withdrawal
liability under ERISA to any Multiemployer Plan or Multiple Employer Plan. No Borrower,
Subsidiary of a Borrower or ERISA Affiliate would become subject to any withdrawal
liability under ERISA if any such party were to withdraw completely from all Multiemployer
Plans and Multiple Employer Plans as of the valuation date most closely preceding the date
on which this representation is made or deemed made. No Borrower, Subsidiary of a Borrower
or ERISA Affiliate has received any notification that any

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Multiemployer Plan is in reorganization (within the meaning of Section 4241 of ERISA),
is insolvent (within the meaning of Section 4245 of ERISA), or has been terminated (within
the meaning of Title IV of ERISA), and no Multiemployer Plan is, to the best of each such
party’s knowledge, reasonably expected to be in reorganization, insolvent, or terminated.

     (d) No prohibited transaction (within the meaning of Section 406 of ERISA or Section
4975 of the Code) or breach of fiduciary responsibility has occurred with respect to a Plan
which has subjected or may subject any Borrower, any Subsidiary of a Borrower or any ERISA
Affiliate to any liability under Sections 406, 409, 502(i), or 502(l) of ERISA or Section
4975 of the Code, or under any agreement or other instrument pursuant to which any
Borrower, any Subsidiary of a Borrower or any ERISA Affiliate has agreed or is required to
indemnify any person against any such liability.

     (e) No Borrower, Subsidiary of a Borrower or ERISA Affiliate has material liability
with respect to “expected post-retirement benefit obligations” within the meaning of the
Financial Accounting Standards Board Statement 106. Each Plan which is a welfare plan (as
defined in Section 3(1) of ERISA) to which Sections 601-609 of ERISA and Section 4980B of
the Code apply has been administered in compliance in all material respects with such
sections.

     6.15 Organization Structure/Subsidiaries.

     As of the Closing Date, (a) Schedule 6.15 is a complete and accurate organization
chart of the Combined Parties, and (b) no Borrower has any Subsidiaries or owns an interest,
directly or indirectly, in any joint venture, except as set forth on Schedule 6.15. The
outstanding equity interest of all Subsidiaries of the Borrowers are validly issued, fully paid and
non-assessable and are owned by the Borrowers free and clear of all Liens. Schedule 6.15
shall be updated as of the end of each fiscal quarter as set forth in Section 7.1(c). Each owner
of an Unencumbered Property, Unencumbered Construction-in-Process or Unencumbered Eligible Land is
a Credit Party or an Eligible Subsidiary.

     6.16 Use of Proceeds; Margin Stock.

     The proceeds of the Loans will be used solely for the purposes specified in Section 7.10. None
of the proceeds of the Loans will be used in a manner that would violate Regulation U, Regulation
X, or Regulation T. No proceeds of the Loans will be used for the acquisition of another Person
unless the board of directors (or other comparable governing body) or stockholders (or other equity
owners), as appropriate, of such Person has approved such acquisition.

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     6.17 Government Regulation.

     No Borrower, nor any of its Subsidiaries, is subject to regulation under the Public Utility
Holding Company Act of 1935, the Federal Power Act, the Investment Company Act of 1940 or the
Interstate Commerce Act, each as amended. No director, executive officer or principal shareholder
of a Borrower or any of its Subsidiaries is a director, executive officer or principal shareholder
of any Lender. For the purposes hereof the terms “director,” “executive officer” and “principal
shareholder” (when used with reference to any Lender) have the respective meanings assigned thereto
in Regulation O.

     6.18 Environmental Matters.

     (a) Except as would not have or be reasonably expected to have a Material Adverse
Effect:

     (i) Each of the Properties and all operations at the Properties are in
material compliance with all applicable Environmental Laws, and there is no
violation of any Environmental Law with respect to the Properties or the businesses
operated by a Credit Party or any of its Subsidiaries (the “Businesses”), and there
are no conditions relating to the Businesses or Properties that would be reasonably
expected to give rise to liability under any applicable Environmental Laws.

     (ii) No Borrower, nor any of its Subsidiaries, has received any written notice
of, or inquiry from any Governmental Authority regarding, any violation, alleged
violation, non-compliance, liability or potential liability regarding Hazardous
Materials or compliance with Environmental Laws with regard to any of the
Properties or the Businesses, nor does any Borrower or any of its Subsidiaries have
knowledge that any such notice is being threatened.

     (iii) Hazardous Materials have not been transported or disposed of from the
Properties, or generated, treated, stored or disposed of at, on or under any of the
Properties or any other location, in each case by, or on behalf or with the
permission of, any Borrower or any of its Subsidiaries in a manner that would
reasonably be expected to give rise to liability under any applicable Environmental
Law.

     (iv) No judicial proceeding or governmental or administrative action is
pending or, to the knowledge of any Borrower or any of its Subsidiaries,
threatened, under any Environmental Law to which any Borrower or any of its
Subsidiaries is or will be named as a party, nor are there any consent decrees or
other decrees, consent orders, administrative orders or other orders, or other
administrative or judicial requirements outstanding under any Environmental Law
with respect to any Borrower or any of its Subsidiaries, the Properties or the
Businesses, in any amount

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reportable under the federal Comprehensive Environmental Response,
Compensation and Liability Act or any analogous state law, except releases in
compliance with all Environmental Laws.

     (v) There has been no release or threat of release of Hazardous Materials at
or from the Properties, or arising from or related to the operations (including,
without limitation, disposal) of a Borrower or any of its Subsidiaries in
connection with the Properties or otherwise in connection with the Businesses
except in compliance with Environmental Laws.

     (vi) None of the Properties contains, or to the best knowledge of the
Borrowers and their Subsidiaries has previously contained, any Hazardous Materials
at, on or under the Properties in amounts or concentrations that, if released,
constitute or constituted a violation of, or could give rise to liability under,
Environmental Laws.

     (vii) No Borrower, nor any of its Subsidiaries, has assumed any liability of
any Person (other than a Borrower) under any Environmental Law.

     (b) Each Borrower, and each of its Subsidiaries, has adopted procedures that are
designed to (i) ensure that each such party, any of its operations and each of the
properties owned or leased by such party remains in compliance with applicable
Environmental Laws and (ii) minimize any liabilities or potential liabilities that each
such party, any of its operations and each of the properties owned or leased by each such
party may have under applicable Environmental Laws.

     6.19 Solvency.

     Each Credit Party, is and, after consummation of the transactions contemplated by this Credit
Agreement, will be Solvent.

     6.20 [Reserved].

     6.21 Location of Properties.

     As of the Closing Date, set forth on Schedule 6.21 is (a) a list of all Properties
(with street address, county and state where located) and the owner of such Property and (b) a list
of all Unencumbered Properties. Schedule 6.21 shall be updated as of the end of each fiscal
quarter as set forth in Section 7.1(c).

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     6.22 Disclosure.

     Neither this Credit Agreement nor any financial statements delivered to the Lenders nor any
other document, certificate or statement furnished to the Lenders by or on behalf of any Borrower
or its Subsidiaries in connection with the transactions contemplated hereby contains any untrue
statement of a material fact or omits to state a material fact necessary in order to make the
statements contained therein or herein not misleading in light of the circumstances in which made;
provided, however, that the Borrowers make no representation or warranty regarding the information
delivered pursuant to Section 7.1(i).

     6.23 Licenses, etc.

     The Combined Parties have obtained, and hold in full force and effect, all franchises,
licenses, permits, certificates, authorizations, qualifications, accreditations, easements, rights
of way and other rights, consents and approvals which are necessary for the operation of their
respective businesses as presently conducted, except where the failure to obtain the same would not
have or would not reasonably be expected to have a Material Adverse Effect.

     6.24 No Burdensome Restrictions.

     No Combined Party is a party to any agreement or instrument or subject to any other obligation
or any charter or corporate restriction or any provision of any applicable law, rule or regulation
which, individually or in the aggregate, would have or would be reasonably expected to have a
Material Adverse Effect.

     6.25 Eligible Subsidiaries.

     Each Subsidiary of the Borrowers which owns or ground-leases any Property that is treated as
Unencumbered Property, Unencumbered Construction-in-Process or Unencumbered Eligible Land under
this Agreement is either an Eligible Subsidiary or a Guarantor.
Schedule 6.25 sets forth a list of
all Eligible Subsidiaries which own or ground-lease any Property that is treated as Unencumbered
Property, Unencumbered Construction-in-Process or Unencumbered Eligible Land under this Agreement
as of the Closing Date. Schedule 6.25 shall be updated as of the end of each fiscal quarter as set
forth in Section 7.1(c).

     6.26 Foreign Assets Control Regulations, Etc.

     None of the requesting or borrowing of the Loans or the use of the proceeds of any thereof
will violate the Trading With the Enemy Act (50 U.S.C. § 1 et seq., as amended) (the “Trading With
the Enemy Act”) or any of the foreign assets control regulations of the United States Treasury
Department (31 CFR, Subtitle B, Chapter V, as amended) (the “Foreign Assets Control Regulations”)
or any enabling legislation or executive order relating thereto (which for the avoidance of doubt
shall include, but shall not be limited to Executive Order 13224 of September 21, 2001 Blocking
Property and

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Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66
Fed. Reg. 49079 (2001)) (the “Executive Order”). Furthermore, neither a Borrower nor any of its
Subsidiaries or other Affiliates (a) is or will become a “blocked person” as described in the
Executive Order, the Trading With the Enemy Act or the Foreign Assets Control Regulations or (b)
engages or will engage in any dealings or transactions, or be otherwise associated, with any such
“blocked person”.

SECTION 7.

AFFIRMATIVE COVENANTS

     Each Borrower hereby covenants and agrees that so long as this Credit Agreement is in effect
and until the Obligations have been paid in full and the Commitments shall have terminated:

     7.1 Information Covenants.

     The Borrowers will furnish, or cause to be furnished, to the Administrative Agent and, except
as otherwise set forth in this Section, each of the Lenders:

     (a) Annual Financial Statements. As soon as available, and in any event within
90 days after the close of each fiscal year of the Borrowers, a consolidated balance sheet
and income statement of the Borrowers and their Subsidiaries as of the end of such fiscal
year, together with related consolidated statements of operations and retained earnings and
of cash flows for such fiscal year, setting forth in comparative form consolidated figures
as of the end of and for the preceding fiscal year, all such financial information
described above to be in reasonable form and detail and audited by independent certified
public accountants of recognized national standing reasonably acceptable to the
Administrative Agent and whose opinion shall be to the effect that such financial
statements have been prepared in accordance with GAAP (except for changes with which such
accountants concur) and shall not be limited as to the scope of the audit or qualified in
any manner. Delivery by the Borrowers to the Administrative Agent of BRT’s annual report
to the Securities and Exchange Commission on Form 10-K with respect to any fiscal year
shall be deemed to be compliance by the Borrowers with this Section 7.1(a) (it being agreed
that such annual report shall be deemed delivered on the date that (i) such report on Form
10-K is posted on the website of the Securities and Exchange Commission at www.sec.gov or
on the website of the Borrowers at www.brandywinerealty.com and (ii) the Borrowers have
provided the Administrative Agent and the Lenders with written notice of such posting).

     (b) Quarterly Financial Statements. As soon as available, and in any event
within 45 days after the close of each fiscal quarter of the Borrowers (other

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than the fourth fiscal quarter), a consolidated balance sheet and income statement of
the Borrowers and their Subsidiaries, as of the end of such fiscal quarter, together with
related consolidated statements of operations and retained earnings and of cash flows for
such fiscal quarter in each case setting forth in comparative form consolidated figures for
(A) the corresponding quarter end and quarterly period of the preceding fiscal year and (B)
management’s proposed budget for such period, all such financial information described
above to be in reasonable form and detail and reasonably acceptable to the Administrative
Agent, and accompanied by a certificate of the chief financial officer of BRT to the effect
that such quarterly financial statements fairly present in all material respects the
financial condition and results of operations of the Borrowers and their Subsidiaries and
have been prepared in accordance with GAAP, subject to changes resulting from audit and
normal year-end audit adjustments. The information required pursuant to this subsection (b)
shall be delivered in both electronic and printed form. Delivery by the Borrowers to the
Administrative Agent of BRT’s quarterly report to the Securities and Exchange Commission on
Form 10-Q with respect to any fiscal quarter shall be deemed to be compliance by the
Borrowers with this Section 7.1(b) (it being agreed that such quarterly report shall be
deemed delivered on the date that (i) such report on Form 10-Q is posted on the website of
the Securities and Exchange Commission at www.sec.gov or on the website of the Borrowers at
www.brandywinerealty.com and (ii) the Borrowers have provided the Administrative Agent and
the Lenders with written notice of such posting).

     (c) Officer’s Certificate. At the time of delivery of the financial statements
provided for in Sections 7.1(a) and 7.1(b), a certificate of the chief financial officer or
chief executive officer of BRT, substantially in the form of Exhibit 7.1(c), (i)
demonstrating compliance with the financial covenants contained in Section 7.2 by
calculation thereof as of the end of each such fiscal period, including such detail and
supporting documentation as reasonably requested by the Administrative Agent (and in the
case of Section 7.2(d) and Section 7.2(e), indicating the number of fiscal quarters for
which such ratio has exceeded 0.60 to 1.0), (ii) stating that no Default or Event of
Default exists, or if any Default or Event of Default does exist, specifying the nature and
extent thereof and what action the Borrowers propose to take with respect thereto, (iii)
providing information regarding dividends and redemption of shares in a manner to
demonstrate compliance with Section 8.7 and (iv) updating Schedule 6.15,
Schedule 6.21 and Schedule 6.25, as appropriate. Such certificate shall be
delivered in both electronic and printed form.

     (d) Accountant’s Certificate. Within the period for delivery of the annual
financial statements provided in Section 7.1(a), a certificate of the accountants
conducting the annual audit stating that they have reviewed this Credit Agreement and
stating further whether, in the course of their audit, they

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have become aware of any Default or Event of Default under Section 7.2 and, if any
such Default or Event of Default exists, specifying the nature and extent thereof.

     (e) Annual Information and Projections. Within 30 days after the end of each
fiscal year of the Borrowers, all such financial information regarding the Borrowers and
their Subsidiaries and specifically regarding the Properties, as the Administrative Agent
shall reasonably request, including, but not limited to, partnership, limited liability
company and joint venture agreements, property cash flow projections, property budgets,
actual and budgeted capital expenditures, operating statements (current year and
immediately preceding year, if the Property existed as a Property in the immediately
preceding year), mortgage information, rent rolls, lease expiration reports, leasing status
reports, notes payable summary, bullet notes summary, equity funding requirements,
contingent liability summary, lines of credit summary, lines of credit collateral summary,
wrap notes and notes receivable summary, schedule of outstanding letters of credit, summary
of cash and Cash Equivalents, projection of management and leasing fees and overhead
budgets.

     (f) Auditor’s Reports. Promptly upon receipt thereof, a copy of any
“management letter” submitted by independent accountants to any Borrower or any of its
Subsidiaries in connection with any annual, interim or special audit of the books of such
Borrower or any of its Subsidiaries.

     (g) Reports. Promptly, (i) and in any case within five (5) days of receipt or
transmission thereof, copies of any filings and registrations with, and reports to or from,
the Securities and Exchange Commission, or any successor agency, and copies of all
financial statements, proxy statements, notices and reports as any Borrower or any of its
Subsidiaries shall send to its shareholders, members or partners generally, (ii) and in any
case within ten (10) days of filing thereof, copies of all income tax returns filed by a
Borrower and (iii) upon the written request of the Administrative Agent, all reports and
written information to and from the United States Environmental Protection Agency, or any
state or local agency responsible for environmental matters, the United States Occupational
Health and Safety Administration, or any state or local agency responsible for health and
safety matters, or any successor agencies or authorities concerning environmental, health
or safety matters; provided, however, that if any such transmissions are done
electronically, the Borrowers shall instead promptly notify the Administrative Agent of
same and provide information on how to retrieve such information.

     (h) Notices. Upon a Borrower obtaining knowledge thereof, such Borrower will
give written notice to the Administrative Agent (which shall promptly forward such notice
to the Lenders) immediately of (i) the occurrence of

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an event or condition consisting of a Default or Event of Default, specifying the
nature and existence thereof and what action the Borrowers propose to take with respect
thereto, (ii) the occurrence of any of the following with respect to any Credit Party or
any of its Subsidiaries: (A) the pendency or commencement of any litigation or arbitral or
governmental proceeding against any Borrower or any of its Subsidiaries which if adversely
determined would have or would be reasonably expected to have a Material Adverse Effect, or
(B) the institution of any proceedings against any Borrower or any of its Subsidiaries with
respect to, or the receipt of notice by such Person of potential liability or
responsibility for, violation, or alleged violation, of any federal, state or local law,
rule or regulation, including, but not limited to, Environmental Laws, the violation of
which would have or would be reasonably expected to have a Material Adverse Effect, and
(iii) the occurrence of any enforcement or notice to enforce a completion guaranty and
within five Business Days thereafter provide evidence that the remaining costs to complete
the applicable project are covered by a construction loan and/or surety bond.

     (i) ERISA. Upon a Borrower or any ERISA Affiliate obtaining knowledge thereof,
the Borrowers will give written notice to the Administrative Agent promptly (and in any
event within five Business Days) of: (i) any event or condition, including, but not limited
to, any Reportable Event, that constitutes, or might reasonably lead to, an ERISA Event;
(ii) with respect to any Multiemployer Plan, the receipt of notice as prescribed in ERISA
or otherwise of any withdrawal liability assessed against a Borrower, any Subsidiary of a
Borrower or any ERISA Affiliate, or of a determination that any Multiemployer Plan is in
reorganization or insolvent (both within the meaning of Title IV of ERISA); (iii) the
failure to make full payment on or before the due date (including extensions) thereof of
all amounts which a Borrower, any Subsidiary of a Borrower or any ERISA Affiliate is
required to contribute to each Plan pursuant to its terms as required to meet the minimum
funding standard set forth in ERISA and the Code with respect thereto; or (iv) any change
in the funding status of any Plan that could have a Material Adverse Effect; in each case
together, with a description of any such event or condition or a copy of any such notice
and a statement by the chief financial officer of the Borrowers briefly setting forth the
details regarding such event, condition, or notice, and the action, if any, which has been
or is being taken or is proposed to be taken by such Borrower, Subsidiary or ERISA
Affiliate with respect thereto. Promptly upon request, the Borrowers shall furnish the
Administrative Agent and the Lenders with such additional information concerning any Plan
as may be reasonably requested, including, but not limited to, copies of each annual
report/return (Form 5500 series), as well as all schedules and attachments thereto required
to filed with the Department of Labor and/or the Internal Revenue Service pursuant to ERISA
and the Code, respectively, for each “plan year” (within the meaning of Section 3(39) of
ERISA).

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     (j) Environmental.

     (i) Subsequent to a notice from any Governmental Authority that would
reasonably cause concern or during the existence of an Event of Default, and upon
the written request of the Administrative Agent, the Borrowers will furnish or
cause to be furnished to the Administrative Agent, at the Borrowers’ expense, an
updated report of an environmental assessment of reasonable scope, form and depth,
including, where appropriate, invasive soil or groundwater sampling, by a
consultant reasonably acceptable to the Administrative Agent as to the nature and
extent of the presence of any Hazardous Materials on any Property and as to the
compliance by the Borrowers with Environmental Laws. If the Borrowers fail to
deliver such an environmental report within seventy-five (75) days after receipt of
such written request then the Administrative Agent may arrange for same, and the
Borrowers hereby grant to the Administrative Agent and its representatives access
to the Properties and a license of a scope reasonably necessary to undertake such
an assessment (including, where appropriate, invasive soil or groundwater
sampling). The reasonable cost of any assessment arranged for by the Administrative
Agent pursuant to this provision will be payable by the Borrowers on demand and
added to the Obligations.

     (ii) Each of the Borrowers and their Subsidiaries will conduct and complete
all investigations, studies, sampling, and testing and all remedial, removal, and
other actions necessary to address all Hazardous Materials on, from, or affecting
any Property to the extent necessary to be in compliance with all Environmental
Laws and all other applicable federal, state, and local laws, regulations, rules
and policies and with the orders and directives of all Governmental Authorities
exercising jurisdiction over such Property to the extent any failure would have or
would be reasonably expected to have a Material Adverse Effect.

     (k) Other Information. With reasonable promptness upon any such request, such
other information regarding the Properties or regarding the business, assets or financial
condition of the Credit Parties and their Subsidiaries as the Administrative Agent or any
Lender may reasonably request.

     7.2 Financial Covenants.

     (a) [Intentionally Omitted.]

     (b) Fixed Charge Coverage Ratio. The Fixed Charge Coverage Ratio, as of the
end of each fiscal quarter of the Combined Parties for the twelve month period ending on
such date, shall be greater than or equal to 1.5 to 1.0.

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     (c) Net Worth. At the end of each fiscal quarter of the Combined Parties, Net
Worth shall be greater than or equal to the sum of (i) $1,290,702,000 plus (ii) 75% of the
Net Cash Proceeds from all Equity Issuances after the Closing Date.

     (d) Leverage Ratio. The Leverage Ratio, as of the end of each fiscal quarter
of the Combined Parties, shall be less than or equal to .60 to 1.0; provided that such
ratio may exceed 0.60 to 1.0 as of the end of up to four (4) fiscal quarters of the
Combined Parties during the term of this Agreement (whether or not consecutive) so long as
such ratio does not exceed 0.65 to 1.0.

     (e) Unsecured Debt Limitation. At the end of each fiscal quarter of the
Combined Parties, the ratio of Unsecured Debt to Unencumbered Value shall be less than or
equal to 0.60 to 1.0; provided that such ratio may exceed 0.60 to 1.0 as of the end of up
to four (4) fiscal quarters of the Combined Parties during the term of this Agreement
(whether or not consecutive) so long as such ratio does not exceed 0.65 to 1.0.

     (f) Secured Debt Ratio. The Secured Debt Ratio, as of the end of each fiscal
quarter of the Combined Parties, shall be less than or equal to 0.40 to 1.0.

     (g) Unencumbered Cash Flow Ratio. The Unencumbered Cash Flow Ratio, as of the
end of each fiscal quarter of the Combined Parties, shall be greater than or equal to 2.0
to 1.0.

     7.3 Preservation of Existence.

     Each of the Borrowers will do all things necessary to preserve and keep in full force and
effect its existence, rights, franchises and authority and the existence, rights, franchises and
authority of the Material Subsidiaries, except as permitted by Section 8.4. Without limiting the
generality of the foregoing, BRT will do all things necessary to maintain its status as a REIT.

     7.4 Books and Records.

     Each of the Borrowers will, and will cause its Subsidiaries to, keep complete and accurate
books and records of its transactions in accordance with good accounting practices on the basis of
GAAP (including the establishment and maintenance of appropriate reserves).

     7.5 Compliance with Law.

     Each of the Borrowers will, and will cause its Subsidiaries to, comply in all material
respects with all material laws, rules, regulations and orders, and all applicable

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material restrictions imposed by all Governmental Authorities, applicable to it and its
property (including, without limitation, Environmental Laws and ERISA).

     7.6 Payment of Taxes and Other Indebtedness.

     Each of the Borrowers will, and will cause its Subsidiaries to, pay, settle or discharge (a)
all taxes, assessments and governmental charges or levies imposed upon it, or upon its income or
profits, or upon any of its properties, before they shall become delinquent, (b) all lawful claims
(including claims for labor, materials and supplies) which, if unpaid, might give rise to a Lien
upon any of its properties, and (c) except as prohibited hereunder, all of its other Indebtedness
as it shall become due; provided, however, that a Borrower or any of its Subsidiaries shall not be
required to pay any such tax, assessment, charge, levy, claim or Indebtedness which is being
contested in good faith by appropriate proceedings and as to which adequate reserves therefor have
been established in accordance with GAAP, unless the failure to make any such payment (i) would
give rise to an immediate right to foreclose on a Lien on an Unencumbered Property securing such
amounts (unless no Default or Event of Default would exist after giving effect to the disposition
of such Unencumbered Property) or (ii) would have a Material Adverse Effect.

     7.7 Insurance.

     Each of the Borrowers will, and will cause its Subsidiaries to, at all times maintain in full
force and effect insurance (including worker’s compensation insurance, liability insurance,
casualty insurance and business interruption insurance) in such amounts, covering such risks and
liabilities and with such deductibles or self-insurance retentions as are in accordance with normal
industry practice.

     7.8 Maintenance of Assets.

     Each of the Borrowers will, and will cause its Subsidiaries to, maintain and preserve its
Properties and all other assets in good repair, working order and condition, normal wear and tear
excepted, and will make, or cause to be made, in the Properties and other assets, from time to
time, all repairs, renewals, replacements, extensions, additions, betterments and improvements
thereto as may be needed or proper, to the extent and in the manner customary for companies in
similar businesses.

     7.9 Performance of Obligations.

     Each of the Borrowers will, and will cause its Subsidiaries to, perform in all material
respects all of its obligations under the terms of all material agreements, indentures, mortgages,
security agreements or other debt instruments to which it is a party or by which it is bound.

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     7.10 Use of Proceeds.

     The Borrowers will use the proceeds of the Loans solely for general working capital purposes
and other general corporate purposes, including the funding of acquisitions and the repayment of
Indebtedness under the Revolving Credit Agreement and other Indebtedness.

     7.11 Audits/Inspections.

     Upon reasonable notice and during normal business hours, each Borrower will, and will cause
its Subsidiaries to, permit representatives appointed by the Administrative Agent, including,
without limitation, independent accountants, agents, attorneys and appraisers to visit and inspect
such Borrower’s or other Combined Party’s property, including, without limitation, the Properties,
its books and records, its accounts receivable and inventory, its facilities and its other business
assets, and to make photocopies or photographs thereof and to write down and record any information
such representative obtains and shall permit the Administrative Agent or its representatives to
investigate and verify the accuracy of information provided to the Lenders, and to discuss all such
matters with the officers, employees and representatives of the Borrowers, their Subsidiaries and
any other Combined Party.

     7.12 Additional Credit Parties.

     (a) At any time a Subsidiary of the Borrowers that (1) is not a Credit Party becomes
the owner (or ground lessee under an Eligible Ground Lease) of Property that the Borrowers
determine to treat as an Unencumbered Property, Unencumbered Eligible Land or Unencumbered
Construction-in-Process and (2) is not an Eligible Subsidiary, the Borrowers shall notify
the Administrative Agent and promptly thereafter (but in any event within 30 days after
such event) such Subsidiary shall: (a) execute a Guaranty in substantially the form of
Exhibit 7.12 and (b) deliver such other documentation as the Administrative Agent may
reasonably request in connection with the foregoing, including, without limitation,
information regarding the real property owned by such Person, certified resolutions and
other organizational and authorizing documents of such Person and favorable opinions of
counsel to such Person (which shall cover, among other things, the legality, validity,
binding effect and enforceability of the documentation referred to above), all in form,
content and scope reasonably satisfactory to the Administrative Agent. It is understood
and agreed that in the event any Subsidiary provides a Guaranty hereunder, it may also
guaranty Indebtedness under the Revolving Credit Agreement, the Private Placement Notes and
the Indenture.

     (b) From time to time the Borrowers may request that the Administrative Agent, on
behalf of the Lenders, accept one or more indemnities or guarantees from unit holders of
Borrowers as further inducement to Lender for providing the Loans hereunder, and promptly
upon receipt of such request the

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Administrative Agent shall execute and deliver such documents or instruments as shall
reasonably be requested and be reasonably acceptable to the Administrative Agent to reflect
acceptance of delivery of such indemnities or guarantees on behalf of Lenders. No such
indemnities or guaranties shall affect the obligations of the Borrowers hereunder.

     7.13 Interest Rate Protection Agreements.

     The Borrowers shall maintain Interest Rate Hedges on a notional amount of the Funded Debt
which, when added to the aggregate principal amount of the Funded Debt which bears interest at a
fixed rate, equals or exceeds 60%, of the aggregate principal amount of all Funded Debt. “Interest
Rate Hedges” shall mean interest rate exchange, collar, cap, swap, adjustable strike cap,
adjustable strike corridor or similar agreements having terms, conditions and tenors that are
reasonably customary for borrowers such as the Borrowers entered into by the Borrowers and their
Subsidiaries in order to provide protection to, or minimize the impact upon, the Borrowers and
their Subsidiaries of increasing floating rates of interest applicable to the Funded Debt.

     7.14 Construction.

     With respect to any construction and development engaged in by the Combined Parties, the
Borrowers shall or shall cause another Person to: (a) comply with all applicable regulations and
codes and (b) complete all such construction and development in accordance with approved plans and
specifications.

     7.15 Sales.

     If a Borrower or one of its Subsidiaries anticipates the sale, lease, transfer, encumbrance or
disposition of an Unencumbered Property (or equity interest therein) for consideration in excess of
$75,000,000, then five (5) Business Days prior to such Borrower (or Subsidiary) taking such action,
the Borrowers shall provide the Administrative Agent written notice of such action, together with a
certification as to compliance with the terms of this Credit Agreement, including, without
limitation, Section 7.2 (on a Pro Forma Basis), after giving effect to such action prepared and
executed by the chief financial officer or chief executive officer of BRT.

SECTION 8.

NEGATIVE COVENANTS

     Each Borrower hereby covenants and agrees that so long as this Credit Agreement is in effect
and until the Obligations have been paid in full and the Commitments shall have terminated:

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     8.1 Indebtedness.

     No Borrower will, nor will it permit any of its Subsidiaries to, contract, create, incur,
assume or permit to exist any Indebtedness, except:

     (a) Indebtedness arising under this Credit Agreement and the other Credit Documents
and Indebtedness under the Revolving Credit Agreement;

     (b) Indebtedness in respect of current accounts payable and accrued expenses incurred
in the ordinary course of business; and

     (c) Other Indebtedness as long as, prior to and after giving effect thereto, the
Borrowers are otherwise in compliance with the terms of this Credit Agreement.

     provided that the Borrowers shall not permit any Subsidiary of a Borrower that is the
owner (or ground-lessee) of a Property that is treated as an Unencumbered Property, an Unencumbered
Construction-in-Process or Unencumbered Eligible Land under this Agreement to contract, create,
incur, assume or permit to exist any Recourse Indebtedness unless such Subsidiary becomes a
Guarantor as required pursuant to Section 7.12.

     8.2 Liens.

     No Borrower will, nor will it permit any of its Material Subsidiaries to, contract, create,
incur, assume or permit to exist any Lien with respect to any of its Properties or any other assets
of any kind (whether real or personal, tangible or intangible), whether now owned or after
acquired, except for Permitted Liens.

     8.3 Nature of Business.

     No Borrower will, nor will it permit any of its Subsidiaries to, alter the character of its
business from that conducted as of the Closing Date or engage in any business other than the
business conducted as of the Closing Date.

     8.4 Consolidation and Merger.

     No Borrower will, nor will it permit any of its Material Subsidiaries to, enter into any
transaction of merger or consolidation or liquidate, wind up or dissolve itself (or suffer any
liquidation or dissolution); provided that notwithstanding the foregoing provisions of this Section
8.4, (a) (i) any Person may merge into a Borrower in a transaction in which such Borrower is the
surviving Person; (ii) any Person may merge into any Material Subsidiary in a transaction in which
the surviving entity is a Material Subsidiary; and (iii) any Material Subsidiary may sell,
transfer, lease or otherwise dispose of its assets to a Borrower or to another Material Subsidiary;
provided that in each case the Borrowers execute and deliver such documents, instruments and
certificates as the Administrative Agent may reasonably request and after giving effect thereto no
Default

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or Event of Default exists; (b) upon prior written notification to the Administrative Agent,
any Material Subsidiary of a Borrower may be dissolved or liquidated so long as (1) after giving
effect thereto no Default or Event of Default exists, (2) any transfer of assets in connection
therewith to a Person that is not a Material Subsidiary shall be subject to Section 7.15, if
applicable, and (3) the Borrowers shall execute and deliver such documents, instruments and
certificates as the Administrative Agent may reasonably request; (c) upon prior written
notification to the Administrative Agent, as long as no Default or Event of Default exists, a
Material Subsidiary of a Borrower that has no assets and no revenues may be dissolved or liquidated
and (d) the Acquisition shall be permitted.

     8.5 Sale or Lease of Assets.

     (a) No Property may be conveyed, sold, leased, transferred or otherwise disposed of
unless the Borrowers comply with Section 7.15 (if applicable) and after giving effect
thereto no Default or Event of Default exists.

     (b) No equity interest in any Guarantor or Eligible Unencumbered Property Subsidiary
may be conveyed, sold, transferred or otherwise disposed of unless the Borrowers comply
with Section 7.15 (if applicable) and after giving effect thereto no Default or Event of
Default exists. Upon the disposition of an equity interest in a Guarantor in conformance
with the terms hereof, if after the disposition of such equity interest such Guarantor no
longer qualifies as the owner of any Unencumbered Properties the Lenders agree to release
such Guarantor from its obligations hereunder, and the Lenders hereby consent to the
Administrative Agent executing and delivering such releases as necessary to give effect to
such agreement.

     8.6 [Intentionally Omitted.]

     8.7 Restricted Payments.

     BOP will not, directly or indirectly, declare or pay any dividends or make any other
distribution upon any of its shares of beneficial interests or any shares of its capital stock of
any class or with respect to any of its membership or partnership interests; provided that BOP may
pay dividends or make distributions in any period of four (4) consecutive fiscal quarters in an
amount not to exceed, in the aggregate, the greater of (i) 95% of Funds From Operations for such
period or (ii) the minimum amount necessary for BRT to maintain its status as a REIT. Neither the
Borrower nor their Subsidiaries will repurchase any capital stock or shares of beneficial interest
(including the repurchase of stock or shares of beneficial interest that is retired, cancelled or
terminated) or other ownership interests (including options, warrants and stock appreciation
rights) if a Default or Event of Default exists or would occur after giving effect thereto.

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     8.8 Transactions with Affiliates.

     No Borrower will, nor will it permit any of its Subsidiaries to, enter into any transaction or
series of transactions, whether or not in the ordinary course of business, with any officer,
director, trustee, shareholder, Subsidiary or Affiliate other than on terms and conditions
substantially as favorable as would be obtainable in a comparable arm’s-length transaction with a
Person other than an officer, director, trustee, shareholder, Subsidiary or Affiliate.

     8.9 Fiscal Year; Organizational Documents.

     No Borrower will, nor will it permit any of its Subsidiaries to, (a) change its fiscal year or
(b) change its articles or certificate of incorporation, its bylaws, its declaration of trust, its
limited liability company agreement, its articles or certificate of partnership or partnership
agreement or any other organization or formation documents in any manner that would have an adverse
effect of the rights of the Lenders under the Credit Documents; provided that (i) BRT may take such
action, with prior written notice to the Administrative Agent, as is necessary to maintain its
status as a REIT and (ii) the Borrowers will provide prompt written notice to the Administrative
Agent of any change to be made in compliance with the terms of this Section 8.9.

     8.10 Limitations.

     No Borrower will, nor will it permit any of its Subsidiaries to, directly or indirectly,
create or otherwise cause, incur, assume, suffer or permit to exist or become effective any
consensual encumbrance or restriction of any kind on the ability of any such Person to pay any
Indebtedness owed to the Borrowers; provided that a Subsidiary of a Borrower (which is not itself a
Credit Party) that obtains financing may agree with the provider of such financing to restrict
repayments of Indebtedness owing to the Borrowers.

     8.11 Other Negative Pledges.

     The Borrowers will not, and will not permit any of their Material Subsidiaries to, enter into,
assume or become subject to any agreement prohibiting or otherwise restricting the creation or
assumption of any Lien upon its properties or assets, whether now owned or hereafter acquired, or
requiring the grant of any security for such obligation if security is given for some other
obligation, other than (i) as provided under the Loan Documents and the Revolving Credit Agreement,
(ii) restrictions on Secured Indebtedness and Unsecured Indebtedness set forth in the Indenture and
the Private Placement Notes, (iii) an agreement by a Borrower or one of its Subsidiaries with a
joint venture partner not to pledge its equity interest in such joint venture and (iv) an agreement
by a Borrower or one of its Subsidiaries in a mortgage or joint venture agreement to restrict Liens
on a particular property which is not an Unencumbered

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Property or on the equity interests in any particular entity which is not a Borrower or a
Material Subsidiary.

SECTION 9.

EVENTS OF DEFAULT

     9.1 Events of Default.

     An Event of Default shall exist upon the occurrence of any of the following specified events
(each an “Event of Default”):

     (a) Payment. The Borrowers shall default in the payment (i) when due of any
principal amount of any Loans or (ii) within three days of when due of any interest on the
Loans or any fees or other amounts owing hereunder, under any of the other Credit Documents
or in connection herewith.

     (b) Representations. Any representation, warranty or statement made or deemed
to be made by any Borrower or any of its Subsidiaries herein, in any of the other Credit
Documents, or in any statement or certificate delivered or required to be delivered
pursuant hereto or thereto shall prove untrue in any material respect on the date as of
which it was made or deemed to have been made or delivered.

     (c) Covenants. Any Borrower or any of its Subsidiaries shall:

     (i) default in the due performance or observance of any term, covenant or
agreement contained in Sections 7.2, 7.3, 7.10, 7.11, 7.12, 7.14 or 8.1 through
8.11 inclusive; or

     (ii) default in the due performance or observance by it of any term, covenant
or agreement contained in Section 7.1 and such default shall continue unremedied
for a period of five Business Days after the earlier of a Borrower becoming aware
of such default or notice thereof given by the Administrative Agent; or

     (iii) default in the due performance or observance by it of any term, covenant
or agreement (other than those referred to in subsections (a), (b) or (c)(i) or
(ii) of this Section 9.1) contained in this Credit Agreement and such default shall
continue unremedied for a period of at least 30 days after the earlier of a
Borrower becoming aware of such default or notice thereof given by the
Administrative Agent.

     (d) Other Credit Documents. (i) Any Credit Party shall default in the due
performance or observance of any term, covenant or agreement in any of the

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other Credit Documents and such default shall continue unremedied for a period of at
least 30 days after the earlier of a Borrower becoming aware of such default or notice
thereof given by the Administrative Agent or (ii) any Credit Document (or any provision of
any Credit Document) shall fail to be in full force and effect or any Borrower or any of
its Subsidiaries shall so assert or any Credit Document shall fail to give the
Administrative Agent and/or the Lenders the security interests, liens, rights, powers and
privileges purported to be created thereby.

     (e) Bankruptcy, etc. The occurrence of any of the following with respect to
any Borrower or any of its Significant Subsidiaries: (i) a court or Governmental Authority
having jurisdiction in the premises shall enter a decree or order for relief in respect of
any Borrower or any of its Significant Subsidiaries in an involuntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or
appoint a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official of any Borrower or any of its Significant Subsidiaries or for any substantial part
of its property or ordering the winding up or liquidation of its affairs; or (ii) an
involuntary case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect is commenced against any Borrower or any of its Significant
Subsidiaries and such petition remains unstayed and in effect for a period of 60
consecutive days; or (iii) any Borrower or any of its Significant Subsidiaries shall
commence a voluntary case under any applicable bankruptcy, insolvency or other similar law
now or hereafter in effect, or consent to the entry of an order for relief in an
involuntary case under any such law, or consent to the appointment or taking possession by
a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of
such Person or any substantial part of its property or make any general assignment for the
benefit of creditors; or (iv) any Borrower or any of its Significant Subsidiaries shall be
generally unable or shall admit in writing its inability to pay its debts generally as they
become due or any action shall be taken by such Person in furtherance of any of the
aforesaid purposes.

     (f) Defaults under Other Agreements. With respect to any Recourse Indebtedness
(other than Indebtedness outstanding under this Credit Agreement) of any Borrower or any of
its Subsidiaries in an aggregate principal amount equal to or in excess of $50,000,000, (i)
a Borrower or one of its Subsidiaries shall (A) default in any payment (beyond the
applicable grace period with respect thereto, if any) with respect to any such Recourse
Indebtedness, or (B) default (after giving effect to any applicable grace period) in the
observance or performance of any term, covenant or agreement relating to such Recourse
Indebtedness or contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event or condition shall occur or condition exist, the effect of
which default or other event or condition is to cause, or permit, the holder or holders of
such Recourse Indebtedness (or a trustee or agent on behalf of such holders) to cause
(determined without regard to whether any notice or lapse of time is

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required) any such Recourse Indebtedness to become due prior to its stated maturity;
or (ii) any such Recourse Indebtedness shall be declared due and payable, or required to be
prepaid other than by a regularly scheduled required prepayment prior to the stated
maturity thereof; or (iii) any such Indebtedness shall mature and remain unpaid.

     (g) Judgments. One or more judgments, orders, or decrees shall be entered
against any one or more of any Borrower or any of its Subsidiaries involving a liability of
$25,000,000 or more, in the aggregate (to the extent not paid or covered by insurance
provided by a carrier who has acknowledged coverage), and such judgments, orders or decrees
(i) are the subject of any enforcement proceeding commenced by any creditor or (ii) shall
continue unsatisfied, undischarged and unstayed for a period ending on the first to occur
of (A) the last day on which such judgment, order or decree becomes final and unappealable
or (B) 20 days.

     (h) ERISA Events. The occurrence of any of the following events or conditions,
unless such event or occurrence would not have or be reasonably expected to have a Material
Adverse Effect: (1) any “accumulated funding deficiency,” as such term is defined in
Section 302 of ERISA and Section 412 of the Code, whether or not waived, shall exist with
respect to any Plan, or any lien shall arise on the assets of a Borrower, any Subsidiary of
a Borrower or any ERISA Affiliate in favor of the PBGC or a Plan; (2) an ERISA Event shall
occur with respect to a Single Employer Plan, which is, in the reasonable opinion of the
Administrative Agent, likely to result in the termination of such Plan for purposes of
Title IV of ERISA; (3) an ERISA Event shall occur with respect to a Multiemployer Plan or
Multiple Employer Plan, which is, in the reasonable opinion of the Administrative Agent,
likely to result in (i) the termination of such Plan for purposes of Title IV of ERISA, or
(ii) a Borrower, any Subsidiary of a Borrower or any ERISA Affiliate incurring any
liability in connection with a withdrawal from, reorganization of (within the meaning of
Section 4241 of ERISA), or insolvency (within the meaning of Section 4245 of ERISA) of such
Plan; or (4) any prohibited transaction (within the meaning of Section 406 of ERISA or
Section 4975 of the Code) or breach of fiduciary responsibility shall occur which may
subject a Borrower, any Subsidiary of a Borrower or any ERISA Affiliate to any liability
under Sections 406, 409, 502(i), or 502(l) of ERISA or Section 4975 of the Code, or under
any agreement or other instrument pursuant to which a Borrower, any Subsidiary of a
Borrower or any ERISA Affiliate has agreed or is required to indemnify any person against
any such liability.

     (i) REIT Status. BRT does not maintain its REIT status or is no longer deemed
to be a REIT.

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     (j) Revolving Credit Agreement. An “Event of Default” shall occur and be
continuing under the Revolving Credit Agreement.

     9.2 Acceleration; Remedies.

     Upon the occurrence of an Event of Default, and at any time thereafter unless and until such
Event of Default has been waived in writing by the Required Lenders (or the Lenders as may be
required hereunder), the Administrative Agent shall, upon the request and direction of the Required
Lenders, by written notice to the Borrowers, take any of the following actions without prejudice to
the rights of the Administrative Agent or any Lender to enforce its claims against the Borrowers,
except as otherwise specifically provided for herein:

     (a) Termination of Commitments. Declare the Commitments terminated whereupon
the Commitments shall be immediately terminated.

     (b) Acceleration of Loans. Declare the unpaid principal of and any accrued
interest in respect of all Loans and any and all other indebtedness or obligations of any
and every kind owing by a Borrower to any of the Lenders hereunder to be due whereupon the
same shall be immediately due and payable without presentment, demand, protest or other
notice of any kind, all of which are hereby waived by the Borrowers.

     (c) Enforcement of Rights. Enforce any and all rights and interests created
and existing under the Credit Documents, including, without limitation, all rights and
remedies against a Guarantor and all rights of set-off.

Notwithstanding the foregoing, if an Event of Default specified in Section 9.1(e) shall occur, then
the Commitments shall automatically terminate and all Loans, all accrued interest in respect
thereof, all accrued and unpaid fees, and all other indebtedness or obligations owing to the
Lenders hereunder shall automatically and immediately become due and payable without the giving of
any notice or other action by the Administrative Agent or the Lenders, which notice or other action
is expressly waived by the Borrowers.

Notwithstanding the fact that enforcement powers reside primarily with the Administrative Agent,
each Lender has, to the extent permitted by law, a separate right of payment and shall be
considered a separate “creditor” holding a separate “claim” within the meaning of Section 101(5) of
the Bankruptcy Code or any other insolvency statute.

     9.3 Allocation of Payments After Event of Default.

     Notwithstanding any other provisions of this Credit Agreement, after the occurrence and during
the continuance of an Event of Default, all amounts collected or received by the Administrative
Agent or any Lender on account of amounts outstanding under any of the Credit Documents shall be
paid over or delivered as follows:

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     FIRST, to the payment of all reasonable out-of-pocket costs and expenses (including
without limitation reasonable attorneys’ fees) of the Administrative Agent in connection
with enforcing the rights of the Lenders under the Credit Documents;

     SECOND, to payment of any fees owed to the Administrative Agent;

     THIRD, to the payment of all reasonable out-of-pocket costs and expenses (including,
without limitation, reasonable attorneys’ fees) of each of the Lenders in connection with
enforcing its rights under the Credit Documents;

     FOURTH, to the payment of all accrued fees and interest payable to the Lenders
hereunder;

     FIFTH, to the payment of the outstanding principal amount of the Loans;

     SIXTH, to all other Obligations which shall have become due and payable under the
Credit Documents and not repaid pursuant to clauses “FIRST” through “FIFTH” above; and

     SEVENTH, to the payment of the surplus, if any, to whoever may be lawfully entitled to
receive such surplus.

In carrying out the foregoing, (a) amounts received shall be applied in the numerical order
provided until exhausted prior to application to the next succeeding category; and (b) each of the
Lenders shall receive an amount equal to its pro rata share (based on the proportion that the then
outstanding Loans held by such Lender bears to the aggregate then outstanding Loans) of amounts
available to be applied pursuant to clauses “THIRD”, “FOURTH,” “FIFTH,” and “SIXTH” above.

SECTION 10.

AGENCY PROVISIONS

     10.1 Appointment.

     Each Lender hereby designates and appoints Citizens Bank of Pennsylvania as Administrative
Agent of such Lender to act as specified herein and in the other Credit Documents, and each Lender
hereby authorizes the Administrative Agent, as the agent for such Lender, to take such action on
its behalf under the provisions of this Credit Agreement and the other Credit Documents and to
exercise such powers and perform such duties as are expressly delegated by the terms hereof and of
the other Credit Documents, together with such other powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary elsewhere herein and in the other Credit Documents,
the Administrative Agent shall not have any duties or responsibilities, except those expressly set
forth herein and therein, or any fiduciary relationship with any Lender, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read into this Credit
Agreement or any of the other Credit Documents,

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or shall otherwise exist against the Administrative Agent. The provisions of this Section are
solely for the benefit of the Administrative Agent and the Lenders and none of the Borrowers or
their Subsidiaries shall have any rights as a third party beneficiary of the provisions hereof. In
performing its functions and duties under this Credit Agreement and the other Credit Documents, the
Administrative Agent shall act solely as an agent of the Lenders and does not assume and shall not
be deemed to have assumed any obligation or relationship of agency or trust with or for any
Borrowers or their Subsidiaries.

     10.2 Delegation of Duties.

     The Administrative Agent may execute any of its duties hereunder or under the other Credit
Documents by or through agents or attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties. The Administrative Agent shall not be responsible
for the negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable
care.

     10.3 Exculpatory Provisions.

     No Agent-Related Person shall be (a) liable for any action lawfully taken or omitted to be
taken by it under or in connection herewith or in connection with any of the other Credit Documents
(except for such Person’s own gross negligence or willful misconduct) or (b) responsible in any
manner to any of the Lenders for any recitals, statements, representations or warranties made by
any of the Borrowers or their Subsidiaries contained herein or in any of the other Credit Documents
or in any certificate, report, document, financial statement or other written or oral statement
referred to or provided for in, or received by an Agent-Related Person under or in connection
herewith or in connection with the other Credit Documents, or the enforceability or sufficiency of
this Credit Agreement or any of the other Credit Documents, or for any failure of the Borrowers or
their Subsidiaries to perform their obligations hereunder or thereunder. No Agent-Related Person
shall be responsible to any Lender for the effectiveness, genuineness, validity, enforceability,
collectibility or sufficiency of this Credit Agreement, or any of the other Credit Documents or for
any representations, warranties, recitals or statements made herein or therein or made by the
Borrowers or their Subsidiaries in any written or oral statement or in any financial or other
statements, instruments, reports, certificates or any other documents in connection herewith or
therewith furnished or made by an Agent-Related Person to the Lenders or by or on behalf of the
Borrowers or their Subsidiaries to an Agent-Related Person or any Lender or be required to
ascertain or inquire as to the performance or observance of any of the terms, conditions,
provisions, covenants or agreements contained herein or therein or as to the use of the proceeds of
the Loans or of the existence or possible existence of any Default or Event of Default or to
inspect the properties, books or records of the Borrowers or their Subsidiaries. No Agent-Related
Person is a trustee for the Lenders or owes any fiduciary duty to the Lenders.

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     10.4 Reliance on Communications.

     The Administrative Agent shall be entitled to rely, and shall be fully protected in relying,
upon any note, writing, resolution, notice, consent, certificate, affidavit, letter, cablegram,
telegram, telecopy, telex or teletype message, statement, order or other document or conversation
believed by it 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 any of the Borrowers or their Subsidiaries, independent accountants and other experts selected
by the Administrative Agent with reasonable care). The Administrative Agent may deem and treat each
Lender as the owner of its interests hereunder for all purposes unless a written notice of
assignment, negotiation or transfer thereof shall have been filed with the Administrative Agent in
accordance with Section 11.3(b). The Administrative Agent shall be fully justified in failing or
refusing to take any action under this Credit Agreement or under any of the other Credit Documents
unless it shall first receive such advice or concurrence of the Required Lenders (or, to the extent
provided in Section 11.6, all of the Lenders) as it deems appropriate or it shall first be
indemnified to its satisfaction by the Lenders against any and all liability and expense (other
than any liability or expense resulting from the gross negligence or willful misconduct of the
Administrative Agent) which may be incurred by it by reason of taking or continuing to take any
such action. The Agent-Related Persons shall in all cases be fully protected in acting, or in
refraining from acting, hereunder or under any of the other Credit Documents in accordance with a
request of the Required Lenders (or to the extent specifically provided in Section 11.6, all the
Lenders) and such request and any action taken or failure to act pursuant thereto shall be binding
upon all the Lenders (including their successors and assigns).

     10.5 Notice of Default.

     The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of
any Default or Event of Default hereunder unless the Administrative Agent has received notice from
a Lender or a Borrower referring to the applicable Credit Document, describing such Default or
Event of Default and stating that such notice is a “notice of default.” In the event that the
Administrative Agent receives such a notice, the Administrative Agent shall give prompt notice
thereof to the Lenders. The Administrative Agent shall take such action with respect to such
Default or Event of Default as shall be reasonably directed by the Required Lenders (or, to the
extent provided in Section 11.6, all of the Lenders).

     10.6 Non-Reliance on Administrative Agent and Other Lenders.

     Each Lender expressly acknowledges that no Agent-Related Person has made any representations
or warranties to it and that no act by any Agent-Related Person hereafter taken, including any
review of the affairs of any Borrower or its Subsidiaries, shall be deemed to constitute any
representation or warranty by any Agent-Related Person or any

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other Lender. Each Lender represents to the Administrative Agent and the Arranger that it has,
independently and without reliance upon any Agent-Related Person 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, assets, operations, property, financial and other conditions,
prospects and creditworthiness of the Borrowers and their Subsidiaries and made its own decision to
make its Loans hereunder and enter into this Credit Agreement. Each Lender also represents that it
will, independently and without reliance upon any Agent-Related Person 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 Credit
Agreement, and to make such investigation as it deems necessary to inform itself as to the
business, assets, operations, property, financial and other conditions, prospects and
creditworthiness of the Borrowers and their Subsidiaries. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the Administrative Agent hereunder,
no Agent-Related Person shall have any duty or responsibility to provide any Lender with any credit
or other information concerning the business, operations, assets, property, financial or other
conditions, prospects or creditworthiness of the Borrowers and their Subsidiaries which may come
into the possession of any Agent-Related Person.

     10.7 Indemnification.

     The Lenders agree to indemnify each Agent-Related Person (to the extent not reimbursed by the
Borrowers and without limiting the obligation of the Borrowers to do so), ratably according to
their respective Commitments (or if the Commitments have expired or been terminated, in accordance
with the respective principal amounts of outstanding Loans and Participation Interests of the
Lenders), 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 payment in full of the Obligations) be
imposed on, incurred by or asserted against such Agent-Related Person in any way relating to or
arising out of this Credit Agreement or the other Credit Documents 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 such Agent-Related Person 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 such Agent-Related
Person. If any indemnity furnished to the Administrative Agent for any purpose shall, in the
opinion of the Administrative Agent, be insufficient or become impaired, the Administrative Agent
may call for additional indemnity and cease, or not commence, to do the acts indemnified against
until such additional indemnity (except against its gross negligence or willful misconduct) is
furnished. The agreements in this Section 10.7 shall survive the payment of the

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Obligations and all other amounts payable hereunder and under the other Credit Documents.

     10.8 Administrative Agent in Its Individual Capacity.

     The Person serving as the Administrative Agent and its Affiliates may make loans to, accept
deposits from and generally engage in any kind of business with the Borrowers and their
Subsidiaries as though the Person serving as the Administrative Agent were not the Administrative
Agent hereunder. With respect to the Loans made and all obligations owing to it, the Person serving
as the Administrative Agent shall have the same rights and powers under this Credit Agreement as
any Lender and may exercise the same as though it were not the Administrative Agent, and the terms
“Lender” and “Lenders” shall include the Person serving as the Administrative Agent in its
individual capacity.

     10.9 Successor Agent.

     The Administrative Agent (a) may, at any time, resign upon 20 days written notice to the
Lenders or (b) may be removed for willful misconduct or gross negligence by written notice from the
Required Lenders; provided that no consent of the Borrowers shall be required during the existence
and continuation of an Event of Default. Upon any such resignation or removal, the Required Lenders
shall have the right to appoint a successor Administrative Agent. In the case of the Administrative
Agent’s resignation or removal, if no successor Administrative Agent shall have been so appointed
by the Required Lenders, and shall have accepted such appointment, within 45 days after the notice
of resignation or removal, then the retiring Administrative Agent shall select a successor
Administrative Agent provided such successor is a Lender hereunder or an Eligible Assignee. If no
such successor shall have been appointed by the Administrative Agent, and shall have accepted such
appointment, within 45 days after such notice of resignation, such notice shall nevertheless become
effective and the Lenders shall perform all of the duties of the Administrative Agent hereunder
until such time, if any, as the Required Lenders appoint a successor as provided above. Upon the
acceptance of any appointment as the Administrative Agent hereunder by a successor, if any, such
successor Administrative Agent shall thereupon succeed to and become vested with all the rights,
powers, privileges and duties of the retiring or removed Administrative Agent, and the retiring or
removed Administrative Agent shall be discharged from its duties and obligations as the
Administrative Agent, as appropriate, under this Credit Agreement and the other Credit Documents
and the provisions of this Section 10.9 shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was the Administrative Agent under this Credit Agreement.

     Any syndication agent or documentation agent hereunder may resign at any time without any
requirement that a successor syndication agent or documentation agent, respectively, be appointed
in its stead.

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SECTION 11.

MISCELLANEOUS

     11.1 Notices.

     Except as otherwise expressly provided herein, all notices and other communications shall have
been duly given and shall be effective (a) when delivered, (b) when transmitted via telecopy (or
other facsimile device), (c) the Business Day following the day on which the same has been
delivered prepaid or on an invoice arrangement to a reputable national overnight air courier
service, or (d) the third Business Day following the day on which the same is sent by certified or
registered mail, postage prepaid, in each case to the respective parties at the address or telecopy
numbers set forth on Schedule 11.1, or at such other address or numbers as such party may
specify by written notice to the other parties hereto.

     11.2 Right of Set-Off.

     In addition to any rights now or hereafter granted under applicable law or otherwise, and not
by way of limitation of any such rights, upon the occurrence of an Event of Default and the
commencement of remedies described in Section 9.2, each Lender is authorized at any time and from
time to time, without presentment, demand, protest or other notice of any kind (all of which rights
being hereby expressly waived), to set off and to appropriate and apply any and all deposits
(general or special) and any other indebtedness at any time held or owing by such Lender
(including, without limitation, branches, agencies or Affiliates of such Lender wherever located)
to or for the credit or the account of any Borrower or its Subsidiaries against obligations and
liabilities of such Borrower to the Lenders hereunder, under the Notes, the other Credit Documents
or otherwise, irrespective of whether the Administrative Agent or the Lenders shall have made any
demand hereunder and although such obligations, liabilities or claims, or any of them, may be
contingent or unmatured, and any such set-off shall be deemed to have been made immediately upon
the occurrence of an Event of Default even though such charge is made or entered on the books of
such Lender subsequent thereto. The Borrowers hereby agree that any Person purchasing a
participation in the Loans and Commitments hereunder pursuant to Section 11.3(c) or 3.8 may
exercise all rights of set-off with respect to its participation interest as fully as if such
Person were a Lender hereunder.

     11.3 Benefit of Agreement.

     (a) Generally. This Credit Agreement shall be binding upon and inure to the
benefit of and be enforceable by the respective successors and assigns of the parties
hereto; provided that none of the Borrowers may assign and transfer any of its interests,
rights or obligations under any Credit Document (except as

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permitted by Sections 8.4 or 8.5) without the prior written consent of all of the
Lenders (and any attempt at such assignment or transfer without such consent shall be null
and void); and provided further that the rights of each Lender to transfer, assign or grant
participations in its rights and/or obligations hereunder shall be limited as set forth in
subsections (b) and (c) of this Section 11.3. Notwithstanding the above (including anything
set forth in subsections (b) and (c) of this Section 11.3), nothing herein shall restrict,
prevent or prohibit any Lender from (A) pledging or assigning a security interest in its
rights hereunder or under its Notes, if any, to secure obligations of such Lender,
including any pledge or assignment to a Federal Reserve Bank in support of borrowings made
by such Lender from such Federal Reserve Bank; provided that no such pledge or assignment
shall release a Lender from any of its obligations hereunder or substitute any such pledgee
or assignee for such Lender as a party hereto, or (B) granting assignments or
participations in such Lender’s Loans and/or Commitments hereunder to its parent company
and/or to any Affiliate of such Lender or to any existing Lender or Affiliate thereof.

     (b) Assignments. In addition to the assignments permitted by Section 11.3(a),
each Lender may, with the prior written consent of the Borrowers and the Administrative
Agent (provided that no consent of the Borrowers shall be required during the existence and
continuation of an Event of Default), which consent shall not be unreasonably withheld or
delayed, assign all or a portion of its rights and obligations hereunder pursuant to an
assignment agreement substantially in the form of Exhibit 11.3 to one or more Eligible
Assignees; provided that (i) any such assignment shall be in a minimum aggregate amount of
$5,000,000 of the Loans and Commitments and in integral multiples of $1,000,000 above such
amount (or the remaining amount of Loans and Commitments held by such Lender) and (ii) each
such assignment shall be of a constant, not varying, percentage of all of the assigning
Lender’s rights and obligations under the Loans and Commitment being assigned. Any
assignment hereunder shall be effective upon satisfaction of the conditions set forth above
and delivery to the Administrative Agent of a duly executed assignment agreement together
with a transfer fee of $3,500 payable to the Administrative Agent for its own account. Upon
the effectiveness of any such assignment, the assignee shall become a “Lender” for all
purposes of this Credit Agreement and the other Credit Documents and, to the extent of such
assignment, the assigning Lender shall be relieved of its obligations hereunder to the
extent of the Loans and Commitment components being assigned. The Borrowers agree that upon
notice of any assignment to an assignee that was not theretofore a Lender, they will
promptly provide to such assignee a new Note. Each Lender agrees that, in the event it
assigns all of its Commitment hereunder, it shall promptly return the Note or Note(s)
executed by the Borrowers in its favor.

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     By executing and delivering an assignment agreement in accordance with this Section
11.3(b), the assigning Lender thereunder and the assignee thereunder shall be deemed to
confirm to and agree with each other and the other parties hereto as follows: (i) such
assigning Lender warrants that it is the legal and beneficial owner of the interest being
assigned thereby free and clear of any adverse claim and the assignee warrants that it is
an Eligible Assignee; (ii) except as set forth in clause (i) above, such assigning Lender
makes no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this Credit
Agreement, any of the other Credit Documents or any other instrument or document furnished
pursuant hereto or thereto, or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Credit Agreement, any of the other Credit
Documents or any other instrument or document furnished pursuant hereto or thereto or the
financial condition of any Borrower or its Subsidiaries or the performance or observance by
any Credit Party of any of its obligations under this Credit Agreement, any of the other
Credit Documents or any other instrument or document furnished pursuant hereto or thereto;
(iii) such assigning Lender and such assignee each represents and warrants that it is
legally authorized to enter into such assignment agreement; (iv) such assignee confirms
that it has received a copy of this Credit Agreement, the other Credit Documents and such
other documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such assignment agreement; (v) such assignee will
independently and without reliance upon the Administrative Agent, such assigning Lender 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 decisions in taking or not taking action under
this Credit Agreement and the other Credit Documents; (vi) such assignee appoints and
authorizes the Administrative Agent to take such action on its behalf and to exercise such
powers under this Credit Agreement or any other Credit Document as are delegated to the
Administrative Agent by the terms hereof or thereof, together with such powers as are
reasonably incidental thereto; and (vii) such assignee agrees that it will perform in
accordance with their terms all the obligations which by the terms of this Credit Agreement
and the other Credit Documents are required to be performed by it as a Lender.

     (c) Participations. Each Lender may, without the consent of, or notice to, the
Borrowers or the Administrative Agent, sell, transfer or grant participations in all or any
part of such Lender’s interests and obligations hereunder; provided that (i) such selling
Lender shall remain a “Lender” for all purposes under this Credit Agreement (such selling
Lender’s obligations under the Credit Documents remaining unchanged) and the participant
shall not constitute a Lender hereunder, and the Borrowers, the Administrative Agent and
the other Lenders shall continue to deal exclusively with such selling Lender, and (ii) no
such participant shall have, or be granted, rights to approve any amendment or waiver
relating to this

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Credit Agreement or the other Credit Documents except to the extent any such amendment
or waiver would (A) reduce the principal of or rate of interest on or fees in respect of
any Loans in which the participant is participating or increase any Commitments with
respect thereto, or (B) postpone the date fixed for any payment of principal (including the
extension of the final maturity of any Loan or the date of any mandatory prepayment, other
than pursuant to Section 3.5), interest or fees in which the participant is participating.
In the case of any such participation, the participant shall not have any rights under this
Credit Agreement or the other Credit Documents (the participant’s rights against the
selling Lender in respect of such participation to be those set forth in the participation
agreement with such Lender creating such participation) and all amounts payable by the
Borrowers hereunder shall be determined as if such Lender had not sold such participation;
provided, however, that such participant shall be entitled to receive additional amounts
under Sections 3.9, 3.12, 3.13 and 3.14 to the same extent that the Lender from which such
participant acquired its participation would be entitled to the benefit of such cost
protection provisions.

     (d) The Administrative Agent shall maintain at the Administrative Agent’s office at
the Agency Services Address a copy of each assignment agreement 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 conclusive absent
manifest error, and the Borrowers, the Administrative 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 Credit Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Borrowers and any Lender,
at any reasonable time and from time to time upon reasonable prior notice.

     11.4 No Waiver; Remedies Cumulative.

     No failure or delay on the part of the Administrative Agent or any Lender in exercising any
right, power or privilege hereunder or under any other Credit Document and no course of dealing
between the Borrowers and the Administrative Agent or any Lender shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, power or privilege hereunder or under any
other Credit Document preclude any other or further exercise thereof or the exercise of any other
right, power or privilege hereunder or thereunder. The rights and remedies provided herein are
cumulative and not exclusive of any rights or remedies which the Administrative Agent or any Lender
would otherwise have. No notice to or demand on any Credit Party in any case shall entitle any
Credit Party to any other or further notice or demand in similar or other circumstances or
constitute a waiver of the rights of the Administrative Agent or the Lenders to any other or
further action in any circumstances without notice or demand.

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     11.5 Payment of Expenses; Indemnification.

     The Borrowers jointly and severally agree to: (a) pay all reasonable out-of-pocket costs and
expenses of (i) each Agent-Related Person in connection with (A) the negotiation, preparation,
execution and delivery, syndication and administration of this Credit Agreement and the other
Credit Documents and the documents and instruments referred to therein (including, without
limitation, the reasonable fees and expenses of counsel to the Administrative Agent) and (B) any
amendment, waiver or consent relating hereto and thereto including, but not limited to, any such
amendments, waivers or consents resulting from or related to any work-out, renegotiation or
restructure relating to the performance by the Borrowers under this Credit Agreement, and (ii) the
Agent-Related Persons and the Lenders in connection with (A) enforcement of the Credit Documents
and the documents and instruments referred to herein and therein, including, without limitation, in
connection with any such enforcement, the reasonable fees and disbursements of counsel for the
Agent-Related Persons and each of the Lenders, and (B) any bankruptcy or insolvency proceeding of a
Borrower or any of its Subsidiaries, and (b) indemnify the Agent-Related Persons, each Lender and
its officers, directors, employees, representatives, Affiliates and agents from and hold each of
them harmless against any and all losses, liabilities, claims, damages or expenses incurred by any
of them as a result of, or arising out of, or in any way related to, or by reason of, any
investigation, litigation or other proceeding (whether or not any Agent-Related Person or any
Lender is a party thereto) related to (i) the entering into and/or performance of any Credit
Document or the use of proceeds of any Extensions of Credit or the consummation of any other
transactions contemplated in any Credit Document, including, without limitation, the reasonable
fees and disbursements of counsel incurred in connection with any such investigation, litigation or
other proceeding (but excluding any such losses, liabilities, claims, damages or expenses to the
extent incurred by reason of the gross negligence or willful misconduct on the part of the Person
to be indemnified), (ii) any Environmental Claim and (iii) any claims for Non-Excluded Taxes.

     11.6 Amendments, Waivers and Consents.

     Neither this Credit Agreement nor any other Credit Document nor any of the terms hereof or
thereof may be amended, changed, waived, discharged or terminated unless such amendment, change,
waiver, discharge or termination is in writing and signed by the Required Lenders and the
Borrowers; provided that no such amendment, change, waiver, discharge or termination shall without
the written consent of each Lender affected thereby:

     (a) extend the final maturity of any Loan or any portion thereof or postpone any other
date fixed for any payment of principal (other than in accordance with Section 3.5(b));

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     (b) reduce the rate or extend the time of payment of interest (other than as a result
of waiving the applicability of any post-default increase in interest rates) thereon or
fees hereunder;

     (c) reduce or waive the principal amount of any Loan;

     (d) change the Commitment of a Lender from the amount thereof in effect, other than
pursuant to an assignment permitted under Sections 3.5 or 11.3(b) or any reduction of the
Commitments by the Borrowers pursuant to Section 2.1(e) (it being understood that the
making of incremental Commitments described in Section 2.7 shall require only the consent
of those Lenders making such incremental Commitments);

     (e) release either Borrower from its obligations, or release all or substantially all
of the Guarantors from their obligations, under the Credit Documents; provided that the
Administrative Agent may release a Guarantor in accordance with Section 8.5 or in
accordance with Section 11.19;

     (f) amend, modify or waive any provision of this Section 11.6 or Section 3.7, 3.8, or
9.1(a), or any provision of any Credit Document which, by its express terms, requires the
consent, approval, agreement or satisfaction of all of the Lenders;

     (g) reduce any percentage specified in, or otherwise modify, the definition of
Required Lenders; or

     (h) consent to the assignment or transfer by any Credit Party of any of its rights and
obligations under (or in respect of) the Credit Documents other than any assignment or
transfer by a Guarantor permitted under this Credit Agreement.

If any amendment, waiver or consent with respect to the Credit Documents has been delivered in
writing to a Lender by the Administrative Agent, and such amendment, waiver or consent requires
only the approval of the Required Lenders to become effective, then such Lender shall have ten
Business Days from the date of receipt of such amendment, waiver or consent to respond thereto.
Failure of a Lender to timely respond to such amendment, waiver or consent shall be deemed an
approval by such Lender of such amendment, waiver or consent.

Any increase in the Committed Amount pursuant to Section 2.7 hereof, shall be effective only after
obtaining the consent of each of the Lenders electing to increase its respective Commitment and no
other consent by any Lender not electing to increase its Commitment shall be required for any such
increase in the Committed Amount.

Notwithstanding the fact that the consent of all the Lenders is required in certain circumstances
as set forth above, (x) each Lender is entitled to vote as such Lender sees

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fit on any reorganization plan that affects the Loans, and each Lender acknowledges that the
provisions of Section 1126(c) of the Bankruptcy Code supersedes the unanimous consent provisions
set forth herein and (y) the Required Lenders may consent to allow a Credit Party to use cash
collateral in the context of a bankruptcy or insolvency proceeding.

If, in connection with any proposed amendment, change, waiver, discharge or termination of this
Credit Agreement as contemplated by this Section 11.6, the consent of the Required Lenders is
obtained but the consent of one or more of such other Lenders whose consent is required is not
obtained, then the Borrowers shall have the right to replace all, but not less than all, of such
non-consenting Lender or Lenders (so long as all non-consenting Lenders are so replaced) with one
or more Eligible Assignees identified by the Borrowers pursuant to Section 3.15 (as if each such
non-consenting Lender had made a request referred to in Section 3.15) and Section 11.3 so long as
at the time of such replacement each such new Lender consents to the proposed amendment, change,
waiver, discharge or termination.

     Notwithstanding anything to the contrary set forth herein, in the event that the Borrowers and
the lenders under the Revolving Credit Agreement enter into any amendment, waiver or consent in
respect of the representations, covenants or defaults set forth in Sections 6, 7, 8 or 9 of the
Revolving Credit Agreement, then such amendment, waiver or consent shall apply automatically to any
comparable provision in this Credit Agreement without the consent of the Administrative Agent or
the Lenders and without any further action by the Administrative Agent, the Lenders or the
Borrowers. Any such automatic amendment, waiver or consent will become effective only in the
specific instance and for the specific instance and for the specific purpose for which it is given.
The Borrowers agree to provide promptly to the Administrative Agent and each Lender a copy of such
amendment, waiver or consent under the Revolving Credit Agreement.

     11.7 Counterparts/Telecopy.

     This Credit Agreement may be executed in any number of counterparts, each of which when so
executed and delivered shall be an original, but all of which shall constitute one and the same
instrument. Delivery of executed counterparts by telecopy or other electronic means shall be as
effective as an original and shall constitute a representation that an original will be delivered.

     11.8 Headings.

     The headings of the sections and subsections hereof are provided for convenience only and
shall not in any way affect the meaning or construction of any provision of this Credit Agreement.

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     11.9 Defaulting Lender.

     Each Lender understands and agrees that if such Lender is a Defaulting Lender then
notwithstanding the provisions of Section 11.6 it shall not be entitled to vote on any matter
requiring the consent of the Required Lenders or to object to any matter requiring the consent of
all the Lenders; provided, however, that all other benefits and obligations under the Credit
Documents shall apply to such Defaulting Lender.

     11.10 Survival of Indemnification and Representations and Warranties.

     All indemnities set forth herein and all representations and warranties made herein shall
survive the execution and delivery of this Credit Agreement, the making of the Loans, the repayment
of the Loans and other Obligations and the termination of the Commitments hereunder.

     11.11 Governing Law; Jurisdiction.

     (a) THIS CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. Any legal action or
proceeding with respect to this Credit Agreement or any other Credit Document may be
brought in the courts of the State of New York in New York County, or of the United States
for the Southern District of New York and, by execution and delivery of this Credit
Agreement, each Borrower hereby irrevocably accepts for itself and in respect of its
property, generally and unconditionally, the jurisdiction of such courts. Each Borrower
further irrevocably consents to the service of process out of any of the aforementioned
courts in any such action or proceeding by the mailing of copies thereof by registered or
certified mail, postage prepaid, to it at the address for notices pursuant to Section 11.1,
such service to become effective 15 days after such mailing. Nothing herein shall affect
the right of a Lender to serve process in any other manner permitted by law or to commence
legal proceedings or to otherwise proceed against a Borrower in any other jurisdiction.
Each Borrower agrees that a final judgment in any action or proceeding shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law; provided that nothing in this Section 11.11(a) is intended to impair a
Borrower’s right under applicable law to appeal or seek a stay of any judgment.

     (b) Each Borrower hereby irrevocably waives any objection which it may now or
hereafter have to the laying of venue of any of the aforesaid actions or proceedings
arising out of or in connection with this Credit Agreement or any other Credit Document in
the courts referred to in subsection (a) hereof and hereby further irrevocably waives and
agrees not to plead or claim in any such

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court that any such action or proceeding brought in any such court has been brought in
an inconvenient forum.

     11.12 Waiver of Jury Trial.

     EACH OF THE PARTIES TO THIS CREDIT AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS CREDIT AGREEMENT,
ANY OF THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY.

     11.13 Time.

     All references to time herein shall be references to Eastern Standard Time or Eastern Daylight
Time, as the case may be, unless specified otherwise.

     11.14 Severability.

     If any provision of any of the Credit Documents is determined to be illegal, invalid or
unenforceable, such provision shall be fully severable and the remaining provisions shall remain in
full force and effect and shall be construed without giving effect to the illegal, invalid or
unenforceable provisions.

     11.15 Entirety.

     This Credit Agreement together with the other Credit Documents represent the entire agreement
of the parties hereto and thereto, and supersede all prior agreements and understandings, oral or
written, if any, including any commitment letters or correspondence relating to the Credit
Documents or the transactions contemplated herein and therein.

     11.16 Binding Effect.

     (a) This Credit Agreement shall become effective at such time as all of the conditions
set forth in Section 5.1 have been satisfied or waived by the Lenders and it shall have
been executed by the Borrowers and the Administrative Agent, and the Administrative Agent
shall have received copies hereof (telefaxed or otherwise) which, when taken together, bear
the signatures of each Lender, and thereafter this Credit Agreement shall be binding upon
and inure to the benefit of the Borrowers, the Administrative Agent and each Lender and
their respective successors and assigns.

     (b) This Credit Agreement shall be a continuing agreement and shall remain in full
force and effect until all Loans, interest, fees and other Obligations have been paid in
full and all Commitments have been terminated. Upon

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termination, the Borrowers shall have no further obligations (other than the
indemnification provisions that survive) under the Credit Documents; provided that should
any payment, in whole or in part, of the Obligations be rescinded or otherwise required to
be restored or returned by the Administrative Agent or any Lender, whether as a result of
any proceedings in bankruptcy or reorganization or otherwise, then the Credit Documents
shall automatically be reinstated and all amounts required to be restored or returned and
all costs and expenses incurred by the Administrative Agent or any Lender in connection
therewith shall be deemed included as part of the Obligations.

     11.17 Confidentiality.

     Each Lender agrees that it will use its reasonable best efforts to keep confidential and to
cause any representative designated under Section 7.11 to keep confidential any non-public
information from time to time supplied to it under any Credit Document; provided, however, that
nothing herein shall prevent the disclosure of any such information to (a) the extent a Lender in
good faith believes such disclosure is required by Requirement of Law, (b) counsel for a Lender or
to its accountants and other advisors, (c) bank examiners, auditors or comparable Persons or any
regulatory body having jurisdiction over a Lender, (d) any Affiliate of a Lender, (e) any other
Lender, or any assignee, transferee or participant, or, subject to an agreement containing
provisions substantially the same as those of this Section, (i) any potential assignee, transferee
or participant, of all or any portion of any Lender’s rights under this Credit Agreement who is
notified of the confidential nature of the information or (ii) any actual or prospective
counterparty (or its advisors) to any swap or derivative transaction relating to the Borrowers and
their obligations, (f) any other Person in connection with any litigation to which any one or more
of the Lenders is a party or (g) any other Person to whom disclosure of such information a Lender
believes is necessary or appropriate in its reasonable judgment in connection with the exercise of
remedies or enforcement of rights hereunder; and provided further that no Lender shall have any
obligation under this Section 11.17 to the extent any such information becomes available on a
non-confidential basis from a source other than a Borrower or its Subsidiaries or that any
information becomes publicly available other than by a breach of this Section 11.17.

     11.18 Further Assurances.

     The Borrowers agree, upon the request of the Administrative Agent, to promptly take such
actions as are necessary to carry out the intent of this Credit Agreement and the other Credit
Documents.

     11.19 Release of Guarantors.

     If a Guarantor no longer qualifies as the owner of Unencumbered Properties or becomes an
Eligible Subsidiary, then, as long as no Default or Event of Default exists

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after giving effect to such event, the Lenders agree to release such Guarantor from its
obligations hereunder.

     11.20 USA PATRIOT Act.

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

     11.21 Limitation on Liability.

     Each Borrower waives any right to assert or make any claim against any Lender or the
Administrative Agent for (or to sue any Lender or the Administrative Agent upon any claim for) any
special, indirect, incidental, punitive or consequential damages in respect of any breach or
wrongful conduct (whether the claim is based on contract, tort or duty imposed by law) in
connection with, arising out of or in any way related to this Agreement, any other Credit Document
or the transactions contemplated hereby or thereby, or any act, omission or event in connection
therewith.

{REMAINDER OF PAGE INTENTIONALLY LEFT BLANK}

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     Each of the parties hereto has caused a counterpart of this Term Loan Agreement to be duly
executed and delivered as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	BORROWERS:	 	BRANDYWINE REALTY TRUST,	 	 
	 	 	a Maryland real estate investment trust	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Gerard H. Sweeney	 	 
	 	 	 	 	Title: President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	BRANDYWINE OPERATING PARTNERSHIP,	 	 
	 	 	L.P., a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Brandywine Realty Trust, a Maryland real estate investment trust, its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name: Gerard H. Sweeney	 	 
	 

	 	 	 	 	 	 	 	Title: President and Chief
Executive Officer	 	 

 

 

LENDER:

	 	 	 	 	 
	 	CITIZENS BANK OF PENNSYLVANIA,
 as Administrative Agent and individually as Lender

 	 
	 	By:  	 	 
	 	 	Name:  	Kellie Anderson 	 
	 	 	Title:  	Vice President

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