Document:

EX-4.27

 

Exhibit 4.27

 

USD 200,000,000 REVOLVING CREDIT AGREEMENT

dated as of

February 7 2007,

among

COMPAGNIE GÉNÉRALE DE GÉOPHYSIQUE — VERITAS,

THE LENDERS PARTY HERETO

NATIXIS

as Facility Agent

and

CREDIT SUISSE

as Collateral Agent

 

NATIXIS

as Mandated Lead Arranger

BNP PARIBAS

SG CORPORATE & INVESTMENT BANKING

CREDIT MUTUEL — CIC

CALYON

KBC

as Lead Arrangers

 

 

 

	 	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	SECTION 1.01. Defined Terms
	 	 	1	 
	SECTION 1.02. Terms Generally
	 	 	28	 
	SECTION 1.03. Intercreditor Agreement
	 	 	29	 
	 
	 	 	 	 
	ARTICLE II THE CREDITS
	 	 	29	 
	 
	 	 	 	 
	SECTION 2.01. Commitments
	 	 	29	 
	SECTION 2.02. Loans
	 	 	29	 
	SECTION 2.03. Borrowing Procedure
	 	 	31	 
	SECTION 2.04. Evidence of Debt; Repayment of Loans
	 	 	31	 
	SECTION 2.05. Fees
	 	 	32	 
	SECTION 2.06. Interest on Loans
	 	 	32	 
	SECTION 2.07. Default Interest
	 	 	33	 
	SECTION 2.08. Effective Global Rate (Taux Effectif Global)
	 	 	33	 
	SECTION 2.09. Alternate Rate of Interest
	 	 	33	 
	SECTION 2.10. Termination and Reduction of Commitments
	 	 	34	 
	SECTION 2.11. Conversion of Borrowings not denominated in dollar
	 	 	34	 
	SECTION 2.12. Optional Prepayment
	 	 	34	 
	SECTION 2.13. Reserve Requirements; Change in Circumstances
	 	 	35	 
	SECTION 2.14. Change in Legality
	 	 	35	 
	SECTION 2.15. Indemnity
	 	 	36	 
	SECTION 2.16. Pro Rata Treatment
	 	 	36	 
	SECTION 2.17. Sharing among the Finance Parties
	 	 	36	 
	SECTION 2.18. Payments
	 	 	37	 
	SECTION 2.19. Tax
	 	 	38	 
	SECTION 2.20. Assignment of Commitments Under Certain Circumstances; Duty to Mitigate
	 	 	40	 
	SECTION 2.21. Swingline Loans
	 	 	41	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES
	 	 	42	 
	 
	 	 	 	 
	SECTION 3.01. Status
	 	 	42	 
	SECTION 3.02. Binding Obligations
	 	 	43	 
	SECTION 3.03. NonConflict with Other Obligations
	 	 	43	 
	SECTION 3.04. Power and Authority
	 	 	43	 
	SECTION 3.05. Validity and Admissibility in Evidence
	 	 	43	 
	SECTION 3.06. Governing Law and Enforcement
	 	 	43	 
	SECTION 3.07. Solvency
	 	 	44	 
	SECTION 3.08. No Filing or Stamp Taxes
	 	 	44	 
	SECTION 3.09. No Default
	 	 	44	 
	SECTION 3.10. Investment Company Act
	 	 	44	 
	SECTION 3.11. ERISA
	 	 	45	 
	SECTION 3.12. Use of Proceeds
	 	 	45	 
	SECTION 3.13. No Misleading Information
	 	 	45	 
	SECTION 3.14. Original Financial Statements
	 	 	46	 
	SECTION 3.15. No Proceedings Pending or Threatened
	 	 	46	 
	SECTION 3.16. No Breach of Laws
	 	 	46	 

 

 

	 	 	 	 	 
	SECTION 3.17. Environmental Laws
	 	 	46	 
	SECTION 3.18. Taxation
	 	 	47	 
	SECTION 3.19. Security and Financial Indebtedness
	 	 	47	 
	SECTION 3.20. Ranking
	 	 	47	 
	SECTION 3.21. Good Title to Assets
	 	 	47	 
	SECTION 3.22. Sanctioned Persons
	 	 	48	 
	SECTION 3.23. Legal and Beneficial Ownership
	 	 	48	 
	SECTION 3.24. Shares
	 	 	48	 
	SECTION 3.25. Intellectual Property
	 	 	48	 
	SECTION 3.26. Accounting Reference Date
	 	 	48	 
	SECTION 3.27. Centre of Main Interests and Establishments
	 	 	48	 
	 
	 	 	 	 
	ARTICLE IV CONDITIONS OF LENDING
	 	 	49	 
	 
	 	 	 	 
	SECTION 4.01. All Credit Events
	 	 	49	 
	SECTION 4.02. Conditions Precedent to Signing
	 	 	49	 
	 
	 	 	 	 
	ARTICLE V AFFIRMATIVE COVENANTS
	 	 	51	 
	 
	 	 	 	 
	SECTION 5.01. Financial Statements
	 	 	52	 
	SECTION 5.02. Provision and Contents of Compliance Certificate
	 	 	52	 
	SECTION 5.03. Requirements as to Financial Statements
	 	 	52	 
	SECTION 5.04. Presentations
	 	 	53	 
	SECTION 5.05. Information; Miscellaneous
	 	 	53	 
	SECTION 5.06. Notification of Default
	 	 	54	 
	SECTION 5.07. “Know Your Customer” Checks
	 	 	54	 
	SECTION 5.08. Authorizations
	 	 	54	 
	SECTION 5.09. Compliance with Laws
	 	 	55	 
	SECTION 5.10. Environmental Compliance
	 	 	55	 
	SECTION 5.11. Environmental Claims
	 	 	55	 
	SECTION 5.12. Taxation
	 	 	55	 
	SECTION 5.13. Preservation of Assets
	 	 	55	 
	SECTION 5.14. Pari Passu Ranking
	 	 	55	 
	SECTION 5.15. Insurance
	 	 	56	 
	SECTION 5.16. Pensions
	 	 	56	 
	SECTION 5.17. Access
	 	 	56	 
	SECTION 5.18. Intellectual Property
	 	 	57	 
	SECTION 5.19. Financial Assistance
	 	 	57	 
	SECTION 5.20. Further Assurance
	 	 	57	 
	SECTION 5.21. Maintenance of Ratings
	 	 	58	 
	 
	 	 	 	 
	ARTICLE VI NEGATIVE COVENANTS
	 	 	58	 
	 
	 	 	 	 
	SECTION
6.01. Year-end
	 	 	58	 
	SECTION 6.02. Financial Covenants
	 	 	58	 
	SECTION 6.03. Merger
	 	 	60	 
	SECTION 6.04. Change of Business
	 	 	60	 
	SECTION 6.05. Acquisitions
	 	 	60	 
	SECTION 6.06. Joint Ventures and Investments
	 	 	60	 
	SECTION 6.07. Negative Pledge
	 	 	60	 

 

 

	 	 	 	 	 
	SECTION 6.08. Disposals
	 	 	61	 
	SECTION 6.09. Arm’s Length Basis
	 	 	61	 
	SECTION 6.10. Loans or Credit
	 	 	62	 
	SECTION 6.11. No Guarantees or Indemnities
	 	 	62	 
	SECTION 6.12. Dividends and Share Redemption
	 	 	62	 
	SECTION 6.13. Financial Indebtedness
	 	 	63	 
	SECTION 6.14. Share Capital
	 	 	63	 
	SECTION 6.15. Amendments
	 	 	63	 
	 
	 	 	 	 
	ARTICLE VII EVENTS OF DEFAULT
	 	 	64	 
	 
	 	 	 	 
	ARTICLE VIII THE FACILITY AGENT AND THE COLLATERAL AGENT
	 	 	66	 
	 
	 	 	 	 
	ARTICLE IX MISCELLANEOUS
	 	 	68	 
	 
	 	 	 	 
	SECTION 9.01. Notices
	 	 	68	 
	SECTION 9.02. Survival of Agreement
	 	 	69	 
	SECTION 9.03. Binding Effect
	 	 	69	 
	SECTION 9.04. Changes to the Lenders
	 	 	69	 
	SECTION 9.05. Expenses; Indemnity
	 	 	72	 
	SECTION 9.06. Right of Setoff
	 	 	74	 
	SECTION 9.07. Applicable Law
	 	 	74	 
	SECTION 9.08. Waivers; Amendment
	 	 	74	 
	SECTION 9.09. Severability
	 	 	75	 
	SECTION 9.10. Headings
	 	 	75	 
	 
	 	 	 	 
	SCHEDULE 1 COMMITMENTS
	 	 	78	 
	 
	 	 	 	 
	SCHEDULE 2 FORM OF TRANSFER AGREEMENT
	 	 	79	 
	 
	 	 	 	 
	SCHEDULE 3 BORROWING REQUESTS
	 	 	81	 
	 
	 	 	 	 
	BORROWING REQUEST (REVOLVING LOAN OTHER THAN A SWINGLINE LOAN)
	 	 	81	 
	 
	 	 	 	 
	SCHEDULE 4 LIST OF INITIAL SECURITY DOCUMENTS
	 	 	83	 
	 
	 	 	 	 
	SCHEDULE 5 MANDATORY COST FORMULAE
	 	 	85	 
	 
	 	 	 	 
	SCHEDULE 6 FORM OF COMPLIANCE CERTIFICATE
	 	 	87	 

 

 

CREDIT AGREEMENT dated as of February 7, 2007, among

	(A)	 	COMPAGNIE GÉNÉRALE DE GÉOPHYSIQUE — VERITAS, a société anonyme incorporated under the
laws of France (registration number 969 202 241 RCS Evry) (the “Borrower”);
	 
	(B)	 	NATIXIS, BNP PARIBAS, SOCIETE GENERALE, CREDIT MUTUEL – CIC (acting through Crédit
Industriel et Commercial), CALYON and KBC, (the “Lenders”);
	 
	(C)	 	NATIXIS, as facility agent (the “Facility Agent”);
	 
	(D)	 	NATIXIS, as mandated lead arranger (the “Mandated Lead Arranger”);
	 
	(E)	 	CREDIT SUISSE, as security agent (the “Collateral Agent”) for the Lenders; and
	 
	(F)	 	BNP PARIBAS, SG CORPORATE & INVESTMENT BANKING (the corporate and investment banking
division of SOCIÉTÉ GÉNÉRALE), CREDIT MUTUEL – CIC (acting through Crédit Industriel et
Commercial), CALYON and KBC, as lead arrangers (the “Lead Arrangers”).

     The Borrower has requested the Lenders to extend credit in the form of Revolving Loans at any
time and from time to time prior to the Revolving Credit Maturity Date, in an aggregate principal
amount at any time outstanding not in excess of $200,000,000. The Borrower has requested the
Swingline Lenders to grant within the Revolving Credit Commitments credit, at any time and from
time to time prior to the Revolving Credit Maturity Date, in the form of Swingline Loans, in an
aggregate principal amount at any time outstanding not in excess of $50,000,000. The proceeds of
the Revolving Loans and the Swingline Loans are to be used solely for general corporate purposes of
the Borrower.

     The Lenders are willing to extend such credit to the Borrower on the terms and subject to the
conditions set forth herein. Accordingly, the parties hereto agree as follows:

ARTICLE I

Definitions

     SECTION 1.01. Defined Terms

     As used in this Agreement, the following terms shall have the meanings specified below:

     “Accounting Reference Date” shall mean December 31.

     “Additional Guarantor” shall mean a company which becomes an Additional Guarantor in
accordance with Section 5.20(d) and the terms of the Guarantee Agreement or the Norwegian Guarantee
Agreement, as applicable.

     “Affiliate” shall mean, when used with respect to a specified person, another person that
directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is
under common Control with the person specified; provided, however, that, for purposes of Section
6.09,

- 1 -

 

the term “Affiliate” shall also include any person that directly or indirectly owns 10% or
more of any class of Equity Interests of the person specified or that is an officer or director of
the person specified.

     “Aggregate Revolving Credit Exposure” shall mean the aggregate amount of the Lenders’
Revolving Credit Exposures.

     “Annual Financial Statement” shall mean the financial statements for a Fiscal Year delivered
pursuant to Section 5.01(a).

     “Applicable Percentage” shall mean, for any day, with respect to any Revolving Loan or
Swingline Loan, the applicable percentage set forth in the applicable table below under the caption
“Margin”, as the case may be, based upon the Corporate Ratings applicable on such date:

	 	 	 	 	 
	Corporate Ratings of the Borrower	 	Margin
	Category 3

BB+ or better by S&P and Ba1 or better by Moody’s

	 	 	1.50	%
	Category 2

BB by S&P and Ba2 by Moody’s, or

BB+ or better by S&P and Ba2 by Moody’s, or

BB by S&P and Ba1 or better by Moody’s

	 	 	1.75	%
	Category 1

Other Ratings

	 	 	2.00	%

Each change in the Applicable Percentage resulting from a change in the Corporate Ratings of the
Borrower shall be effective with respect to all Loans outstanding on and after the date on which
such change is first publicly announced by S&P or Moody’s, as applicable, until the date
immediately preceding the next date on which any change in the Corporate Ratings that results in
change in the Applicable Percentage is so announced. Notwithstanding the foregoing, the Corporate
Ratings shall be deemed to be in Category 1 of each table above for purposes of determining the
Applicable Percentage (a) at any time on or prior to March 31, 2007, (b) at any time after the
occurrence and during the continuance of an Event of Default and (c) at any time during which
either S&P or Moody’s shall not have in effect the applicable Corporate Rating. If the rating
system of S&P or Moody’s shall change, or if either such rating agency shall cease to be in the
business of issuing corporate credit ratings, the Borrower shall negotiate in good faith with the
Lenders to amend this definition to reflect such changed rating system or the non-availability of
ratings from such rating agency and, pending the effectiveness of any such amendment, the rating of
such rating agency shall be determined by reference to the rating most recently in effect from such
rating agency prior to such change or cessation.

     “Arranger” shall mean each of the Mandated Lead Arranger and the Lead Arrangers.

     “Asset Sale” shall mean the sale, transfer or other disposition (by way of merger, casualty,
condemnation or otherwise) by the Borrower or any of the other Subsidiaries to any person other
than the Borrower or any other Obligor of (a) any Equity Interests of any of the Subsidiaries
(other than directors’ qualifying shares) or (b) any other assets of the Borrower or any of the
other Subsidiaries (other than (i) any Permitted Disposal described in clause (a), (b), (c), (d)
(provided that cash consideration is not received in connection with such Permitted Disposal under
such clause (d)), (e)(i), (e)(ii), (e)(iii), (f), (i), (j), (k), (l) or (o) of the definition
thereof and (ii) any other

- 2 -

 

sale, transfer or other disposition or series of related sales,
transfers or other dispositions, in each case having a value not in excess of $1,500,000).

     “Auditors” shall mean the external auditors of the Borrower.

     “Authorization” shall mean an authorization, consent, approval, resolution, license,
exemption, filing, notarization or registration.

     “Available Amount” shall mean, as of the Closing Date, $0, which amount shall be (a)
increased, on the date of delivery in any Fiscal Year of the Compliance Certificate required by
Section 5.02 setting forth the calculation of Excess Cash Flow for the preceding Fiscal Year (each
such date being an “ECF Prepayment Date”) by an amount equal to the amount of such Excess Cash Flow
that is not required to be used to prepay the Loans (without giving effect to any rejection right
on the part of the Lenders), (b) increased, on the date of receipt by Parent, CGG Veritas Services
Inc. or any other Obligor of the net cash proceeds of any Equity Issuance, by an amount equal to
the amount of such net cash proceeds that is not required to be used to prepay the Loans (without
giving effect to any rejection right on the part of the Lenders), and (c) reduced (but not below
$0) (i) on each ECF Prepayment Date where Excess Cash Flow for the immediately preceding Fiscal
Year is a negative number, by such amount, and (ii) at the time any Permitted Acquisition,
Permitted Investment, Permitted Loan or Restricted Payment is made pursuant to Section 6.05,
Section 6.06(b), Section 6.10(b) or Section 6.12(b)(x), with an amount attributable to the
Available Amount, by the portion thereof so utilized.

     “Base Case Model” shall mean the base case model prepared by the Borrower and delivered to the
Facility Agent prior to the date of this Agreement.

     “Borrowing” shall mean Revolving Loans including any Swingline Loan.

     “Borrowing Request” shall mean (a) with respect to a Revolving Loan (other than a Swingline
Loan), a request by the Borrower in accordance with the terms of Section 2.03 (Borrowing Procedure)
and substantially in the form of Schedule 3 (Borrowings Request) Part I, or (b) with respect to a
Swingline Loan, a request by the Borrower in accordance with the terms of Section 2.19 (b) and
substantially in the form of Schedule 3 (Borrowings Request) Part II, such other form as shall be
approved by the Facility Agent.

     “Bridge Facility” shall mean the credit facility made available to the Borrower pursuant to
the Bridge Facility Agreement in an aggregate principal amount not to exceed $700,000,000 (or its
equivalent in another currency or currencies).

     “Bridge Facility Agreement” shall mean the Single Currency Term Facility Agreement dated as of
November 22, 2006, among the Borrower, the guarantors party thereto, Credit Suisse International,
as arranger, the lenders party thereto and Credit Suisse, London Branch, as agent and as security
agent.

     “Bridge Facility Security Documents” shall mean all security documents entered into by any
Obligor creating or expressed to create any Security over all or any part of its assets in respect
of the obligations of any of the Obligors in connection with the Bridge Facility Agreement.

     “Business Day” shall mean a day (other than a Saturday or Sunday) on which banks are open for
general business in London and Paris, and (i) in relation to any date for payment or purchase of
euro, any TARGET Day; (ii) in relation to any date for payment or purchase of dollars

- 3 -

 

any day on
which bank are open for general business in New-York; and (iii) in relation to any date for payment
or purchase in a currency other than euro or dollars, the principal financial centre of the country
of that currency.

     “Capital Expenditures” shall mean investments made in multi-client surveys as such item
appears in the consolidated accounts “Document de Référence” plus purchase of tangible and
intangibles or property, plant and equipment as the case may be plus equipment acquired under
capital lease (other than charters of seismic vessels), but excluding in each case any such
expenditure made to restore, replace or rebuild property to the condition of such property
immediately prior to any damage, loss, destruction or condemnation of such property, to the extent
such expenditure is made with insurance proceeds, condemnation awards or damage recovery proceeds
relating to any such damage, loss, destruction or condemnation.

     “Capital Lease Obligations” of any person shall mean the obligations of such person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such person under IFRS, and the amount of
such obligations shall be the capitalized amount thereof determined in accordance with IFRS.

     “Cash” shall mean, at any time, cash at banks (including short-term deposits) denominated in
any currency and credited to an account in the name of one or more members of the Group with a bank
and to which such member or members of the Group are alone beneficially entitled and provided that
(a) such cash is repayable on demand with or without penalty (except where cash is repayable with a
penalty, such penalty shall be taken into account in determining the amount of such cash), (b)
repayment of such cash is not contingent on the prior discharge of any other indebtedness of any
Group member or of any other person whatsoever or on the satisfaction of any other condition and
(c) such cash is freely transferable to an Obligor.

     “Cash Equivalent Investments” shall mean at any time (a) certificates of deposit maturing
within one year after the relevant date of calculation; (b) any investment in marketable debt
obligations issued or guaranteed by the government of the United States of America, the United
Kingdom, France, any member state of the European Economic Area or any Participating Member State
or by an instrumentality or agency of any of them having an equivalent credit rating, maturing
within one year after the relevant date of calculation and not convertible or exchangeable to any
other security; (c) commercial paper not convertible or exchangeable to any other security: (i) for
which a recognized trading market exists; (ii) issued by an issuer incorporated in the United
States of America, the United Kingdom, France, any member state of the European Economic Area or
any Participating Member State; (iii) which matures within one year after the relevant date of
calculation; and (iv) which has a credit rating of either A-1 or higher by S&P or Fitch Ratings Ltd
or P-1 or higher by Moody’s, or, if no rating is available in respect of the commercial paper, the
issuer of which has, in respect of its long-term unsecured and non-credit enhanced debt
obligations, an equivalent rating; (d) sterling bills of exchange eligible for rediscount at the
Bank of England (or their dematerialized equivalent); (e) any investment accessible within 30 days
in money market funds which have a credit rating of either A-1 or higher by S&P or Fitch Rating Ltd
or P-1 or higher by Moody’s and which invest substantially all their assets in securities of the
types described in clauses (a) through (d) above; (f) investments in so-called “auction rate”
securities rated AAA or higher by S&P or Aaa or higher by Moody’s and which have a reset date not
more than 90 days from the date of acquisition thereof; (g) other short-term investments utilized
by Non U.S. Subsidiaries in accordance with normal investment practices for cash management in
investments of a type analogous to the foregoing; or (h) any other debt security approved by the
Majority Lenders, in each case, to which any member of the Group is beneficially entitled at that

- 4 -

 

time and which is not issued or guaranteed by any member of the Group or subject to any Security
(other than one arising under the Security Documents).

     “CGG Services SA Project” shall mean the reorganization of the Borrower’s existing services
business by means of asset contributions to CGG Services S.A. (formerly known as CGG Marine S.A.).

     “CGG Services Holding Project” shall mean the reorganization of the Group’s services business,
including, without limitation, by means of the transfer of Equity Interests of the relevant members
of the Group from the Borrower to a new holding company, which shall become an Obligor hereunder.

     “CGG Veritas Services Inc.” shall mean CGG Veritas Services Inc., a corporation incorporated
under the laws of Delaware, having its registered office at 1209 Orange Street, Wilmington,
Delaware 19801, County of New Castle, United States of America.

     “Change in Law” shall mean (a) the adoption of any law, rule or regulation after the date of
this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender (or, for purposes of Section 2.13, by any lending office of such Lender or
by such Lender’s holding company, if any) with any request, guideline or directive (whether or not
having the force of law) of any Governmental Authority made or issued after the date of this
Agreement.

     A “Change of Control” shall be deemed to have occurred upon the occurrence of any of the
following: (a) the sale, lease, transfer, conveyance or other disposition (other than by merger or
consolidation), in one or a series of related transactions, of all or substantially all of the
properties or assets of the Borrower and its Subsidiaries, taken as a whole; (b) the adoption, by
shareholders of the Borrower, of a voluntary plan relating to the liquidation or dissolution of the
Borrower; (c) the consummation of any transaction (including, without limitation, any merger or
consolidation) the result of which is that any person, or persons acting in concert, becomes the
beneficial owner, directly or indirectly through one or more intermediaries, of more than 35% of
the voting power of the outstanding voting shares of the Borrower; or (d) the first day on which
more than a majority of the members of the board of directors of the Borrower are not Continuing
Directors.

     “Closing Date” means January 12, 2007.

     “Code” shall mean the US Internal Revenue Code of 1986, as amended from time to time.

     “Collateral” shall mean any property, assets or rights that are subject to a mortgage, charge,
pledge, lien or other security interest securing any obligation of any person or any other
agreement or arrangement having a similar effect and shall include the Mortgaged Properties.

     “Commitment” shall mean, with respect to any Lender, such Lender’s Revolving Credit Commitment
including as the case may be the Swingline Commitment.

     “Commitment Fee” shall mean thirty five per cent. (35%) of the applicable Margin.

     “Compliance Certificate” shall mean a certificate substantially in the form set out in
Schedule 6.

- 5 -

 

     “Continuing Directors” shall mean, as of any date of determination, any member of the board of
directors of the Borrower who (a) was a member of the board of directors of the Borrower on the
date of this Agreement or (b) was nominated for election to the board of directors of the
Borrower with the approval of, or whose election to the board of directors of the Borrower was
ratified by, at least a majority of the members of the board of directors of the Borrower who were
members of the board of directors of the Borrower on the date of this Agreement or who were so
elected to the board of directors of the Borrower thereafter.

     “Control” shall mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a person, whether through the ownership of voting
securities, by contract or otherwise, and the terms “Controlling” and “Controlled” shall have
meanings correlative thereto.

     “Corporate Ratings” shall mean the corporate rating of the Borrower by S&P and the corporate
family rating of the Borrower by Moody’s.

     “Credit Event” shall have the meaning assigned to such term in Section 4.01.

     “Current Assets” shall mean, at any time, the consolidated current assets (other than Cash and
Cash Equivalent Investments) of the Borrower and the Subsidiaries.

     “Current Liabilities” shall mean, at any time, the consolidated current liabilities of the
Borrower and the Subsidiaries at such time, but excluding, without duplication, (a) the current
portion of any long-term Indebtedness and (b) outstanding Revolving Loans and Swingline Loans and
outstanding loans under the U.S. First Lien Credit Agreement.

     “Debt Refinancing Securities” shall mean the debt securities subject to the Engagement Letter.

     “Default” shall mean an Event of Default or any event or circumstance specified in Article VII
which would (with the expiry of a grace period, the giving of notice, the making of any
determination under the Finance Documents or any combination of any of the foregoing) be an Event
of Default.

     “Defaulting Lender” shall mean any Revolving Credit Lender that has (a) defaulted in its
obligation to make a Revolving Loan or a Swingline Loan required to be made or funded by it
hereunder, (b) notified the Facility Agent or an Obligor in writing that it does not intend to
satisfy any such obligation or (c) become insolvent or the assets or management of which has been
taken over by any Governmental Authority.

     “Demand Securities” shall mean the demand securities subject to the fee letter dated January
12, 2007, between CGG Veritas Services Inc. (formerly known as Volnay Acquisition Co. I) and the
Administrative Agent under the U.S. First Lien Credit Agreement.

     “Fee Letter” shall mean the fee letter.

     “Fees” shall mean the Commitment Fees, the Administrative Agent Fees, the L/C Participation
Fees and the Issuing Bank Fees.

     “dollars” or “$” or “USD” shall mean lawful money of the United States of America.

- 6 -

 

     “EBITDA” shall mean operating income (loss) of the Borrower and the Subsidiaries determined on
a consolidated basis in accordance with IFRS, excluding non-recurring revenues (expenses) plus
depreciation, amortization, additions (deductions) to valuation allowances of assets
and dividends received from companies accounted for by the Borrower under the equity method
(it being understood that EBITDA is referred to as “ORBDA” under the Bridge Facility Agreement and
in the public filings and releases of the Borrower).

     “Engagement Letter” shall mean the engagement letter dated September 4, 2006, between the
Borrower and the Collateral Agent.

     “Environmental Claim” shall mean any claim, proceeding, formal notice or investigation by any
person in respect of any Environmental Law.

     “Environmental Law” shall mean any applicable law or regulation which relates to (a) the
pollution or protection of the environment; (b) harm to or the protection of human health; (c) the
conditions of the workplace; or (d) any emission or substance capable of causing harm to any living
organism or the environment.

     “Environmental Permits” shall mean any permit and other Authorization and the filing of any
notification, report or assessment required under any Environmental Law for the operation of the
business of any member of the Group conducted on or from the properties owned or used by any member
of the Group.

     “EONIA” shall mean in relation to a Business Day and any amount, (a) the applicable Screen
Rate or (b) (if no Screen Rate is available for that Business Day) the arithmetic mean of the rates
(rounded upwards to four (4) decimal places) as supplied to the Facility Agent at its request
quoted by the Reference Banks to leading banks in the European interbank market, (a) and (b) at or
about 7.00 p.m. (Paris time) on the Business Day for the offering of deposits in Euro for a period
from one Business Day to the immediately following Business Day.

     “Equity Interests” shall mean shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity interests
in any person, and any option, warrant or other right entitling the holder thereof to purchase or
otherwise acquire any such equity interest.

     “Equity Issuance” shall mean any issuance or sale by the Borrower or any of its respective
subsidiaries of any Equity Interests of the Borrower or any such subsidiary, as applicable, except
in each case for (a) any issuance or sale to the Borrower or any Subsidiary and (b) any issuance of
directors’ qualifying shares.

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as the same may be
amended from time to time.

     “ERISA Affiliate” shall mean any trade or business (whether or not incorporated) that,
together with any U.S. Group Member, is treated as a single employer under Section 414(b) or (c) of
the Code, or solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as
a single employer under Section 414 of the Code.

     “ERISA Event” shall mean (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder, with respect to a Plan (other than an event for which the 30-day
notice period is waived), (b) the existence with respect to any Plan of an “accumulated

- 7 -

 

funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA) and, on and after the
effectiveness of the Pension Act, any failure by any Plan to satisfy the minimum funding standards
(within the meaning of Section 412 of the Code or Section 302 of ERISA) applicable to
such Plan, whether or not waived, (c) the filing pursuant to Section 412 of the Code or
Section 303 of ERISA of an application for a waiver of the minimum funding standard with respect to
any Plan, (d) the incurrence by any U.S. Group Member or any of its ERISA Affiliates of any
liability under Title IV of ERISA with respect to the termination of any Plan or the withdrawal or
partial withdrawal of any U.S. Group Member or any of its ERISA Affiliates from any Plan or
Multiemployer Plan, (e) on and after the effectiveness of the Pension Act, a determination that any
Plan is, or is expected to be, in “at-risk” status (within the meaning of Title IV of ERISA), (f)
the receipt by any U.S. Group Member or any of its ERISA Affiliates from the PBGC or a plan
administrator of any notice relating to the intention to terminate any Plan or Plans or to appoint
a trustee to administer any Plan, (g) the adoption of any amendment to a Plan that would require
the provision of security pursuant to Section 401(a)(29) of the Code or Section 307 of ERISA, (h)
the receipt by any U.S. Group Member or any of its ERISA Affiliates of any notice, or the receipt
by any Multiemployer Plan from any U.S. Group Member or any of its ERISA Affiliates of any notice,
concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is,
or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA (or,
after the effectiveness of the Pension Act, that a multiemployer plan is in endangered or critical
status within the meaning of Section 305 of ERISA), (i) the occurrence of a “prohibited
transaction” with respect to which any U.S. Group Member or any of the Subsidiaries is a
“disqualified person” (within the meaning of Section 4975 of the Code) or with respect to which any
U.S. Group Member or any such Subsidiary could otherwise be liable, or (j) any other event or
condition with respect to a Plan or Multiemployer Plan that could result in liability of CGG
Veritas Services Inc. or any Subsidiary.

     “EURIBOR” means, in relation to any Loan in euro:

	 	(a)	 	the applicable Screen Rate; or
	 
	 	(b)	 	(if no Screen Rate is available for the Interest Period of that Loan) the
arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to
the Facility Agent at its request quoted by the Reference Banks to leading banks in
the European interbank market,

as of 11.00 a.m. on the Quotation Day for the offering of deposits in euro for a period comparable
to the Interest Period of the relevant Loan.

     “euros”, “EUR” or “€” shall mean lawful money of the European Economic Area.

     “Event of Default” shall mean any event or circumstance specified as such in Article VII.

     “Excess Cash Flow” shall mean, for any Fiscal Year of the Borrower, the excess of (a) the sum,
without duplication, of (i) EBITDA for such Fiscal Year and (ii) reductions to noncash working
capital of the Borrower and the Subsidiaries for such Fiscal Year over (b) the sum, without
duplication, of (i) the amount of any Taxes payable in cash by the Borrower and the Subsidiaries
with respect to such Fiscal Year, (ii) Total Interest Costs for such Fiscal Year paid in cash,
(iii) Capital Expenditures during such Fiscal Year, except to the extent financed with the proceeds
of Financial Indebtedness, equity issuances, casualty proceeds, condemnation proceeds or other
proceeds that would not be included in EBITDA, (iv) permanent repayments of Financial Indebtedness
(other than (x) mandatory prepayments of Loans under Section 2.12 and (y)

- 8 -

 

Voluntary Prepayments)
made in cash by the Borrower and the Subsidiaries during such Fiscal Year, but only to the extent
that the Financial Indebtedness so prepaid by its terms cannot be reborrowed or redrawn and such
prepayments do not occur in connection with a refinancing of all
or any portion of such Financial Indebtedness, (v) without duplication of amounts reflected in
Total Interest Costs for such Fiscal Year, all cash payments made pursuant to Treasury Transactions
during such Fiscal Year, (vi) Permitted Acquisitions made in cash by the Borrower and the
Subsidiaries during such Fiscal Year, (vii) Restricted Payments made in cash in accordance with
Section 6.12 by the Borrower and the Subsidiaries during such Fiscal Year and (viii) additions to
noncash working capital for such Fiscal Year (i.e., the increase, if any, in Current Assets minus
Current Liabilities from the beginning to the end of such Fiscal Year).

     “Existing Bond Indenture” means the indenture dated April 28, 2005, among the CGG Veritas
Services Inc., as issuer, certain of its Affiliates, as guarantors, and JPMorgan Chase Bank,
National Association, as trustee, pursuant to which the Existing Bonds were issued, as amended,
restated, supplemented or otherwise modified from time to time.

     “Existing Bonds” shall mean the existing 71/2% Senior Notes due 2015 of the Borrower.

     “Facility” shall mean the revolving credit facility including the swingline credit facility
provided in this Agreement.

     “Facility Agent Fees” shall have the meaning assigned to such term in Section 2.05(b).

     “Fee Letter” shall mean the fee letter dated 7 February, 2007, between the Borrower and the
Facility Agent, and any other agreement entered into in connection with the Facilities, setting out
any of the fees referred to in Section 2.05.

     “Fees” shall mean the Commitment Fees, the Participation Fees, the Arrangement Fees and the
Facility Agent Fees.

     “Finance Document” shall mean this Agreement, the Intercreditor Agreement, any Compliance
Certificate, any Fee Letter, any Security Document, any Borrowing Request, executed and delivered
pursuant to Section 2.04(e) and any other document designated as a “Finance Document” by the
Facility Agent and the Borrower.

     “Finance Party” shall mean the Facility Agent, the Collateral Agent, an Arranger or a Lender.

     “Financial Indebtedness” shall mean any indebtedness for or in respect of: (a) moneys
borrowed; (b) any amount raised by acceptance under any acceptance credit facility; (c) any amount
raised pursuant to any note purchase facility or the issue of bonds, notes, debentures or any
similar instrument; (d) the amount of any liability in respect of any lease or hire purchase
contract which would, in accordance with IFRS, be treated as a finance or capital lease; (e)
receivables sold or discounted (other than any receivables to the extent they are sold on a
non-recourse basis); (f) any amount raised under any other transaction (including any forward sale
or purchase agreement) having the commercial effect of a borrowing; (g) any derivative transaction
entered into in connection with protection against or benefit from fluctuation in any rate or price
(and, when calculating the value of any derivative transaction, only the marked to market value
shall be taken into account); (h) any counter-indemnity obligation in respect of a guarantee,
indemnity, bond, standby or documentary letter of credit or any other instrument issued by a bank
or financial institution; (i) all obligations issued or assumed as the deferred purchase price of
property or

- 9 -

 

services (excluding trade accounts payable and accrued obligations incurred in the
ordinary course of business); and (j) the amount of any liability in respect of any guarantee or
indemnity for any of the items referred to in clauses (a) to (i) above; provided that any
indebtedness for or in respect of
any Permitted Guarantee shall not constitute “Financial Indebtedness” hereunder to the extent
such indebtedness is not due and payable.

     “Financial Officer” of any person shall mean the chief financial officer, deputy chief
financial officer, principal accounting officer, treasurer or controller of such person.

     “Financial Quarter” shall mean the period commencing on the day after one Quarter Date and
ending on the next Quarter Date.

     “Fiscal Year” shall mean a calendar year ending on December 31.

     “French GAAP” shall mean generally accepted accounting principles in France.

     “Governmental Authority” shall mean the government of France, the United States or any other
nation, or any state, regional or local political subdivision or department thereof, and any other
governmental or regulatory agency, authority, body, commission, central bank, board, bureau, organ,
court, instrumentality or other entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining to government, in each case
whether federal, state, local or foreign (including supra-national bodies such as the European
Union or the European Central Bank).

     “Group” shall mean the Borrower and its Subsidiaries.

     “Group Restructuring” shall mean the reorganization of the Group, including the transfer
within the Group of Equity Interests of U.S. Subsidiaries and Non U.S. Subsidiaries.

     “Guarantee Agreement” shall mean the guarantee agreement defined in Schedule 4, paragraph (8),
entered in the agreed form.

     “Guarantor” shall mean an Original Guarantor or an Additional Guarantor, unless it has ceased
to be a Guarantor in accordance with the terms of the Guarantee Agreement or the Norwegian
Guarantee Agreement, as applicable.

     “Hazardous Materials” shall mean (a) any petroleum products or byproducts and all other
hydrocarbons, coal ash, radon gas, asbestos, urea formaldehyde foam insulation, polychlorinated
biphenyls, chlorofluorocarbons and all other ozone-depleting substances and (b) any chemical,
material, substance or waste that is prohibited, limited or regulated by or pursuant to any
Environmental Law.

     “Hedging Agreement” shall mean any interest rate protection agreement, foreign currency
exchange agreement, commodity price protection agreement or other interest or currency exchange
rate or commodity price hedging arrangement.

     “IFRS” shall mean International Financial Reporting Standards issued by the International
Accounting Standards Board and adopted by the European Union.

     “Initial Security Documents” shall mean the security documents listed in Schedule 4.

- 10 -

 

     “Intellectual Property” shall mean (a) any patents, trademarks, service marks, designs,
business names, copyrights, design rights, moral rights, inventions, confidential information,
know-how and other intellectual property rights and interests, whether registered or
unregistered; and (b) the benefit of all applications and rights to use such assets of each member
of the Group.

     “Intercreditor Agreement” shall mean the intercreditor agreement entered into on January 12,
2007 between, among others, CGG Veritas Services Inc. (formerly Volnay), the Borrower and certain
of its Subsidiaries and Credit Suisse as First Lien Collateral Agent and Second Lien Collateral
Agent (in each case as defined therein).

     “Interest Payment Date” shall mean the last day of the Interest Period applicable to such
Borrowing.

     “Interest Period” shall mean, with respect to the Swingline Loans, the period commencing on
the date of such Borrowing and ending on the day specified in the relevant Borrowing Request, which
day shall be at the latest the day that is five (5) Business Days thereafter, and with respect to
any other Loan, the period commencing on the date of such Borrowing and ending on the numerically
corresponding day (or, if there is no numerically corresponding day, on the last day) in the
calendar month that is 1, 2, 3, 6, 9 or 12 months thereafter, as the Borrower may select in advance
(or such other periods as may be agreed between the Facility Agent and the Borrower), provided
that, in the case of a Borrowing with an Interest Period of more than three months’ duration, the
accrued interests shall be payable on the date falling at 3-monthly intervals after the first day
of the Interest Period; provided, however, that if any Interest Period would end on a day other
than a Business Day, such Interest Period shall be extended to the next succeeding Business Day
unless such next succeeding Business Day would fall in the next calendar month, in which case such
Interest Period shall end on the next preceding Business Day. Interest shall accrue from and
including the first day of an Interest Period to but excluding the last day of such Interest
Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such
Borrowing is made and thereafter shall be the effective date of the most recent conversion or
continuation of such Borrowing.

     “Joint Venture” shall mean any joint venture entity, whether a company, unincorporated firm,
undertaking, association, joint venture or partnership or any other entity.

     “Legal Reservations” shall mean (a) the principle that equitable remedies may be granted or
refused at the discretion of a court and the limitation of enforcement by laws relating to
insolvency, reorganization and other laws generally affecting the rights of creditors; (b) the time
barring of claims under any statute of limitations and defenses of set-off or counterclaim; and (c)
similar principles, rights and defenses under the laws of any Relevant Jurisdiction.

     “Lenders” shall mean (a) any original Lender and (b) any bank or financial institution which
has become a Party in accordance with Section 9.04 (Change to Lenders), which in each case has not
ceased to be a Party in accordance with the terms of this Agreement. Unless the context clearly
indicates otherwise, the term “Lenders” shall include the Swingline Lenders.

     “LIBOR” shall mean, in relation to any Loan in dollars:

	 	(a)	 	the applicable Screen Rate; or
	 
	 	(b)	 	(if no Screen Rate is available for the Interest Period of that Loan) the
arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to
the

- 11 -

 

	 	 	 	Facility Agent at its request quoted by the Reference Banks to leading banks in
the London interbank market,

as of 11.00 a.m. (London time) on the Quotation Day for the offering of deposits in dollars and for
a period comparable to the Interest Period for that Loan.

     “Loans” shall mean the Revolving Loans including the Swingline Loans.

     “Majority Lenders” shall mean, at any time, a Lender or Lenders whose Commitments aggregate
more than sixty per cent. (60%) of the Total Commitments (or, if the Total Commitments have been
reduced to zero, aggregated more than sixty per cent. (60%) of the Total Commitments immediately
prior to the reduction) or at any other time, a Lender or Lenders whose participations in the Loans
then outstanding aggregate more than sixty per cent. (60%) of all the Loans then outstanding.

     “Mandatory Costs” shall mean the percentage rate per annum calculated by the Facility Agent in
accordance with Schedule 5.

     “Margin” shall mean the Margin as defined in the definition of Applicable Percentage.

     “Material Adverse Effect” shall mean a material adverse effect on (a) the business,
operations, property or condition (financial or otherwise) of the Group taken as a whole; (b) the
ability of the Obligors, taken as a whole, to perform their obligations under the Finance
Documents; or (c) the validity or enforceability of, or the effectiveness or ranking of any
Security granted or purporting to be granted pursuant to any of, the Finance Documents or the
rights or remedies of any Finance Party under any of the Finance Documents.

     “Material Subsidiary” shall mean, at any time, a Subsidiary of the Borrower whose total
assets, revenues and/or EBITDA then equal or exceed, individually, 10% (or, solely for purposes of
Section 5.20(d) hereof, 5%) of the total assets, revenues and/or EBITDA of the Group; provided that
if at any time the total assets, revenues and/or EBITDA of such individual Material Subsidiaries do
not equal or exceed 85% of the total assets, revenues and/or EBITDA of the Group, the Borrower
shall designate additional Subsidiaries as Material Subsidiaries such that the total assets,
revenues and/or EBITDA of all Material Subsidiaries, collectively, equal or exceed 85% of the total
assets, revenues and/or EBITDA of the Group. For purposes of this definition (a) the consolidated
total assets, revenues and/or EBITDA of a Subsidiary of the Borrower will be determined from its
financial statements (unconsolidated if it has subsidiaries) upon which the latest audited
financial statements of the Group have been based; (b) if a Subsidiary of the Borrower becomes a
member of the Group after the date on which the latest audited financial statements of the Group
have been prepared, the consolidated total assets, revenues and/or EBITDA of that Subsidiary will
be determined from its latest financial statements; (c) the consolidated total assets, revenues
and/or EBITDA of the Group will be determined from its latest audited financial statements,
adjusted (where appropriate) to reflect the total assets, revenues and/or EBITDA of any company or
business subsequently acquired or disposed of; and (d) if a Material Subsidiary disposes of all or
substantially all of its assets to another Subsidiary of the Borrower, it will immediately cease to
be a Material Subsidiary and the other Subsidiary (if it is not already) will immediately become a
Material Subsidiary; the subsequent financial statements of those Subsidiaries and the Group will
be used to determine whether those Subsidiaries are Material Subsidiaries or not. If there is a
dispute as to whether or not a company is a Material Subsidiary, a certificate of the Auditors will
be, in the absence of manifest error, conclusive.

- 12 -

 

     “Maturing Loan” shall have the meaning set forth in Section 2.04(e).

     “Merger” shall mean the merger of Volnay with and into the Target and the surviving
corporation merging with and into Volnay Acquisition Co. II, a Delaware corporation (now CGG
Veritas Services Inc.), which occurred on January 12, 2007.

     “Moody’s” shall mean Moody’s Investors Service, Inc., or any successor thereto.

     “Mortgaged Properties” shall mean, initially, the owned real properties and leasehold and
subleasehold interests of the Obligors, and shall include each other parcel of real property and
improvements thereto with respect to which a Mortgage is granted pursuant to Section 5.20.

     “Mortgages” shall mean the mortgages, deeds of trust, leasehold mortgages, assignments of
leases and rents, modifications and other security documents to be entered in the agreed form.

     “Multiemployer Plan” shall mean a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

     “Non U.S. Subsidiary” shall mean any Subsidiary that is not a U.S. Subsidiary.

     “Norwegian Guarantee Agreement” shall mean the guarantee agreement (Norway) defined in
Schedule 4, paragraph (4), entered in the agreed form.

     “Not Otherwise Applied” shall mean, with reference to any amount of the Available Amount that
is proposed to be applied to a particular use or transaction, that such amount has not previously
been (and is not simultaneously being) applied to anything other than that such particular use or
transaction.

     “Obligations” shall mean all obligations defined as “Obligations” in the Guarantee Agreement
and the other Security Documents.

     “Obligors” shall mean the Borrower and the Guarantors.

     “Original Financial Statements” shall mean (a) IFRS (French GAAP in the case of the 2003
Fiscal Year) with a U.S. GAAP reconciliation (or, in the case of the Target Group, U.S. GAAP)
audited consolidated balance sheets and related statements of income, stockholders’ equity and cash
flows of Borrower for the 2003, 2004 and 2005 Fiscal Years and for the Target Group for the 2004
and 2005 Fiscal Years; (b) (i) IFRS with a U.S. GAAP reconciliation (or, in the case of the Target
Group, U.S. GAAP) unaudited consolidated balance sheets and related statements of income,
stockholders’ equity and cash flows of each of the Borrower and the Target Group for each such
entity’s subsequent fiscal quarter ended 69 days before the Signing Date, which financial
statements shall not be materially inconsistent with the financial statements or forecasts
previously provided to the Collateral Agent and; (ii) statements showing (x) the ratio of (A)
EBITDA less Capital Expenditures to (B) Total Interest Costs and (y) the Total Leverage Ratio, in
each case, measured quarterly on a rolling 12 month basis, and total Capital Expenditures during a
rolling 12 month period of each of the Borrower and the Target Group, in each case, ended not
earlier than 54 days before the Signing Date; and (iii) in relation to any other Obligor, its
audited financial statements delivered to the Facility Agent as required by Section 5.01.

     “Original Guarantors” shall mean CGG VERITAS SERVICES INC., CGG AMERICA INC., CGG CANADA
SERVICES LTD., SERCEL AUSTRALIA PTY LTD., SERCEL INC.,

- 13 -

 

VERITAS INVESTMENTS INC., VERITAS
GEOPHYSICAL CORPORATION, VIKING MARITIME INC., VERITAS DGC LAND INC., ALITHEIA RESOURCES INC.,
VERITAS
GEOPHYSICAL (MEXICO) LLC, VERITAS DGC ASIA PACIFIC LTD. and CGG MARINE RESOURCES NORGE A/S.

     “Original Obligors” shall mean the Borrower and the Original Guarantors.

     “Participating Member State” shall mean any member state of the European Communities that
adopts or has adopted the euro as its lawful currency in accordance with legislation of the
European Community relating to Economic and Monetary Union.

     “PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA.

     “Pension Act” means the Pension Protection Act of 2006, as amended.

     “Perfection Certificate” shall mean the Perfection Certificate substantially in the form of
Exhibit B to the Pledge and Security Agreement (U.S.).

     “Permitted Acquisition” shall mean (a) an acquisition by way of merger provided that the
merger is permitted under clause (c) of the definition of Permitted Merger; (b) the acquisition of,
or investment in, any share or interest in any Permitted Joint Venture or Permitted Investment,
provided that, (i) other than as provided in subclause (ii) below, the aggregate amount of all such
acquisitions and investments shall not exceed $75,000,000, and (ii) from and after the time at
which $75,000,000 of acquisitions and investments permitted by this clause (b) have been made, the
aggregate amount of any other acquisitions or investments permitted by this clause (b) shall be
limited to the Available Amount that is Not Otherwise Applied at the time such transaction is
consummated (it being understood that a single transaction may utilize amounts available, if any,
under both subclause (i) and subclause (ii) of this clause (b)); (c) the acquisition of, or
investment in, any share or interest in the entities set forth on Schedule 1.01(f) of the U.S.
First Lien Credit Agreement, in each case pursuant to the joint venture agreement applicable
thereto, as in effect on the Signing Date; (d) the acquisition by a member of the Group of any
share, interest or asset sold, leased, transferred or otherwise disposed of by another member of
the Group in circumstances constituting a Permitted Disposal; (e) the acquisition by a member of
the Group of Cash Equivalent Investments; (f) an acquisition by a member of the Group to which the
Facility Agent (on the instructions of the Majority Lenders) shall have given prior written
consent; (g) the receipt by a member of the Group of any non-cash consideration from a Qualifying
Business Disposal; or (h) an acquisition that is a Qualifying Acquisition.

     “Permitted Disposal” shall mean any sale, lease, transfer or other disposal (a) made in the
ordinary course of business of the disposing entity or of a type described in clause (ii) of the
parenthetical set forth in clause (b) of the definition of the term “Asset Sale”; (b) of access to
multi-client data libraries owned by any member of the Group, but not including the sale, lease,
transfer or other disposal of the ownership interests therein; (c) of assets in exchange for other
assets comparable or superior as to type, value and quality; (d) the sale, transfer or disposal of
assets by the Borrower or any member of the Group consisting of one 2D seismic vessel and/or one 3D
seismic vessel, in exchange for equity, joint venture interests or other consideration; (e) made by
(i) an Obligor to another Obligor or (ii) a non-Obligor to another non-Obligor or (iii) a
non-Obligor to an Obligor or (iv) an Obligor to a non-Obligor subject to a maximum aggregate amount
for all such disposals under this sub-clause (iv) of $75,000,000 during the term of the Facilities;
(f) constituting the creation of any Permitted Security; (g) to which the Facility Agent (on the

- 14 -

 

instructions of the Majority Lenders) shall have given prior written consent; (h) (i) with respect
to assets that constitute Collateral, where the higher of the market value or consideration
receivable
(when aggregated with the higher of the market value or consideration receivable for any other
sale, lease, transfer or other disposal by the Group in any related transaction) does not exceed
$75,000,000 per Fiscal Year (or its equivalent in another currency or currencies), and (ii) with
respect to assets that do not constitute Collateral, where the higher of the market value or
consideration receivable (when aggregated with the higher of the market value or consideration
receivable for any other sale, lease, transfer or other disposal by the Group in any related
transaction) does not exceed, $100,000,000 per Fiscal Year (or its equivalent in another currency
or currencies), provided that the portion (if any) of the amounts set forth in the foregoing
clauses (i) and (ii) not used in any Fiscal Year may be carried forward to and used in the
immediately succeeding Fiscal Year; (i) of surplus, obsolete or worn out equipment; (j) of notes or
accounts receivable that, in order to resolve disputes that occur in the ordinary course of
business, an Obligor may discount or otherwise compromise for less than the face value thereof; (k)
of Cash or Cash Equivalent Investments; (l) of Equity Interests by an Obligor in any of its
Subsidiaries in order to qualify members of the board of directors (or similar governing body) of
the Subsidiary, if required by applicable law; (m) to the extent (i) required by a Government
Authority or (ii) pursuant to the Synergies Implementation Plan, in each case in connection with
the Merger; (n) of those assets and/or Equity Interests set forth on Schedule 1.01(g) of the U.S.
First Lien Credit Agreement; (o) in connection with a sale and leaseback of the Borrower’s Massy
Principal headquarters in Massy, France; (p) of the Equity Interests of Sercel Holding (including,
without limitation, by way of a spin-off or initial public offering thereof), provided that such
transaction results in a release of the relevant Sercel Companies as guarantors of the Existing
Bonds pursuant to Section 10.04 of the Existing Bond Indenture and as Guarantors hereunder, and
provided further that, in the case of a spin-off, such transaction satisfies the requirements of
Section 6.12(b); (q) of assets and/or Equity Interests (including, without limitation, intercompany
notes) pursuant to the CGG Services SA Project, the CGG Services Holding Project and the Group
Restructuring; or (r) constituting a Qualifying Business Disposal.

     “Permitted Financial Indebtedness” shall mean (a) any Financial Indebtedness arising under any
Finance Document; (b) any Financial Indebtedness arising under the Bridge Facility or the U.S.
First Lien Credit Agreement; (c) any Permitted Guarantee; (d) any Financial Indebtedness arising
under (x) spot and forward delivery foreign exchange contracts entered into in the ordinary course
of business and not for speculative purposes; and (y) any Treasury Transaction (as defined in the
U.S. First Lien Credit Agreement) entered into for the hedging of actual or projected real
exposures arising in the ordinary course business of a member of the Group and not for speculative
purposes; (e) any Financial Indebtedness arising under or as a result of a Permitted Joint Venture,
provided that the amount of such Financial Indebtedness that is recourse to the Borrower or any
Subsidiary shall not exceed $100,000,000 (or its equivalent in another currency or currencies) at
any one time outstanding; (f) any Financial Indebtedness incurred by a member of the Group to which
the Facility Agent (on the instructions of the Majority Lenders) shall have given prior written
consent; (g) any Financial Indebtedness arising under or as a result of (i) a finance or capital
lease, or purchase money Financial Indebtedness incurred by the Borrower or any Subsidiary prior to
or within 270 days after the acquisition, lease or improvement of an asset permitted under this
Agreement in order to finance such acquisition or improvement, and any Permitted Refinancing
Indebtedness in respect thereof, the aggregate principal amount of which when aggregated with the
Financial Indebtedness under each other finance or capital lease or purchase money Financial
Indebtedness entered into by members of the Group does not at any one time exceed $250,000,000 (or
its equivalent in another currency or currencies); (ii) the sale and leaseback of the Borrower’s
Massy Principal headquarters in Massy, France; and (iii) any vessel

- 15 -

 

charter of CGG Veritas Services
Inc. being treated as a finance or capital lease under IFRS; (h) the Existing Bonds; (i) the Debt
Refinancing Securities and any Demand Securities; (j) any Financial
Indebtedness listed in Schedule 1.01(d) of the U.S. First Lien Credit Agreement; (k) any
Financial Indebtedness incurred by any Obligor not falling within clauses (a) to (g) above, the
aggregate outstanding principal amount of which does not at any one time exceed the greater of (i)
$250,000,000 (or its equivalent in another currency or currencies) and (ii) 5% of the total assets
of the Group, in each case less the total amount of Permitted Guarantees issued in favor of
non-Obligors pursuant to clause (d) of the definition thereof; (l) any Permitted Refinancing
Indebtedness; (m) any Permitted Loan falling within clause (b) of the definition of Permitted Loan;
(n) the Target Convertible Notes (as defined in the U.S. First Lien Credit Agreement); (o) any
Financial Indebtedness not exceeding $30,000,000 arising in connection with the capitalization of
the charter for and/or the acquisition of the vessel Alizé and/or the consolidation of Geomar with
the Group under IFRS; (p) any Financial Indebtedness incurred to finance a Permitted Acquisition,
provided that (i) the Total Leverage Ratio calculated on a pro forma basis after giving effect to
such Permitted Acquisition and the incurrence of any such Financial Indebtedness under this clause
(p) does not exceed the lesser of (A) 2.00 to 1.00 and (B) the ratio for the most recently ended
Relevant Period set forth in Section 6.02(b) and (ii) such Financial Indebtedness is pari passu
with or junior to the Financial Indebtedness hereunder in right of payment; (q) any unsecured
subordinated Financial Indebtedness, provided that the Total Leverage Ratio calculated on a pro
forma basis after giving effect to the incurrence of any such Financial Indebtedness under this
clause (q) does not exceed the lesser of (A) 1.75 to 1.00 and (B) the ratio for the most recently
ended Relevant Period set forth in Section 6.02(b) and (ii) any such Financial Indebtedness
incurred under this clause (q) (w) matures (or becomes mandatorily redeemable at the option of the
holder thereof) no earlier than six months after of the Revolving Credit Maturity Date, (x)
requires no scheduled payment of principal (or other scheduled payment constituting a return of
capital) prior to its maturity, (y) does not require the Borrower or any Subsidiary to maintain any
specified financial condition (other than as a condition to the taking of certain actions) and (z)
contains subordination and other provisions that are reasonably satisfactory to the Facility Agent;
(r) Financial Indebtedness of a Subsidiary acquired after the Signing Date or a person merged into
or consolidated with CGG Veritas Services Inc. or any Subsidiary after the Signing Date and
Financial Indebtedness assumed in connection with the acquisition of assets, which Financial
Indebtedness in each case, exists at the time of such acquisition, merger or consolidation and is
not created in contemplation of such event and where such acquisition, merger or consolidation is
permitted by the U.S. First Lien Credit Agreement, and any Permitted Refinancing Indebtedness
incurred to refinance such Financial Indebtedness, the aggregate outstanding principal amount of
which does not at any one time exceed $200,000,000 (or its equivalent in another currency or
currencies); or (s) any Financial Indebtedness not falling within clauses (a) to (g) above and
incurred by any members of the Group that are not Obligors, the aggregate outstanding principal
amount of which does not at any one time exceed the greater of (i) $250,000,000 (or its equivalent
in another currency or currencies) and (ii) 5% of the total assets of the Group, in each case less
the total amount of the Permitted Guarantees issued pursuant to clause (f) of the definition
thereof.

     “Permitted Guarantee” shall mean (a) any guarantee arising under the Finance Documents; (b)
any guarantee arising under the Bridge Facility or the U.S. First Lien Credit Agreement, the Debt
Refinancing Securities, the Demand Securities, the Permitted Financial Indebtedness incurred under
clause (p) of the definition thereof or any Permitted Refinancing Indebtedness in respect thereof;
(c) any guarantee issued by a member of the Group in the ordinary course of business and not in
respect of Financial Indebtedness, including for the avoidance of doubt, any guarantee given to
ship-managers or ship-owners in relation to vessel charter contracts in the ordinary course of
business; (d) any guarantee issued by a member of the Group in respect of

- 16 -

 

the Financial
Indebtedness of another member of the Group; provided that the aggregate outstanding amount of
guarantees issued after the Signing Date by Obligors in respect of Financial
Indebtedness of members of the Group that are not Obligors shall not exceed the greater of (i)
$250,000,000 (or its equivalent in another currency or currencies) and (ii) 5% of the total assets
of the Group, in each case less the total amount of Permitted Financial Indebtedness incurred under
clause (k) of the definition thereof; (e) any guarantee or indemnity or liability to which the
Facility Agent (acting on the instructions of the Majority Lenders) has consented in writing; or
(f) all guarantees (other than those permitted pursuant to clauses (a) to (e) above) issued by
members of the Group that are not Obligors the aggregate outstanding amount of which does not
exceed the greater of (i) $250,000,000 (or its equivalent in another currency or currencies) and
(ii) 5% of the total assets of the Group, in each case less the total amount of Permitted Financial
Indebtedness incurred under clause (s) of the definition thereof.

     “Permitted Investment” shall mean the acquisition of or investment in any Equity Interest in
any company, business, person, partnership or similar entity (other than a Subsidiary) that the
Borrower has recorded or designated as such to the Facility Agent in writing, provided that (a)
other than as provided in clause (b) below, the aggregate net expenditures in all such acquisitions
and investments made by members of the Group shall not exceed $50,000,000 (or its equivalent in
another currency or currencies), and (b) from and after the time at which $50,000,000 of such net
expenditures have been made, the aggregate net expenditures in any other such acquisitions and
investments made by members of the Group shall not exceed the Available Amount that is Not
Otherwise Applied at the time such transaction is consummated (it being understood that a single
transaction may utilize amounts available, if any, under both clause (a) and clause (b) above).

     “Permitted Joint Venture” shall mean (a) any Joint Venture listed on Schedule 1.01(g) of the
U.S. First Lien Credit Agreement; (b) any Joint Venture to which the Facility Agent (acting on the
instructions of the Majority Lenders) has given prior written consent; or (c) any Joint Venture
where (i) no Default is continuing on the date of the acquisition of or investment in, or transfer
or loan to, or guarantee, Security or Quasi-Security for the obligations of, the Joint Venture or
would occur as a result of the acquisition of or investment in, or transfer or loan to, or
guarantee, Security or Quasi-Security for the obligations of, a Joint Venture; (ii) the Joint
Venture carries on, or is, a business (x) substantially the same as that carried on by the Group or
(y) providing services or software products to the oil and gas industry or manufacturing equipment
for use by the oil and gas industry (or any business that is reasonably complementary or related
thereto); and (iii) the Joint Venture does not have any material contingent off-balance sheet,
environmental, litigation or other liability except to the extent for which adequate reserves are
being maintained in accordance with IFRS and/or in respect of which the relevant vendor (if any)
has indemnified that member of the Group.

     “Permitted Loan” shall mean (a) any loan made by a member of the Group in the ordinary course
of business (in the case of loans and advances of the type described in clause (d) of this
definition, subject to the limitations set forth in such clause); (b) any loan made by a member of
the Group to another member of the Group; provided that the aggregate amount of loans made after
the Signing Date by Obligors to members of the Group that are not Obligors (determined without
regard to any write-downs or write-offs of such loans) shall not exceed $300,000,000 at any time
outstanding; (c) any loan with respect to which the Facility Agent (acting on the instructions of
the Majority Lenders) shall have given prior written consent; (d) loans or advances to officers,
directors and employees of the Borrower or any member of the Group made in the ordinary course of
business and consistent with past practices of the Borrower and the Group (including, without
limitation, portage) in an aggregate amount not to exceed $5,000,000 outstanding at any one time;

- 17 -

 

(e) any loans and credits (other than those permitted pursuant to clauses (a) to (d) above) made by
a member of the Group, provided that (i) other than as provided in subclause (i) below, the
aggregate amount of all such loans and credits shall not exceed $10,000,000 (or the equivalent
of such sum in another currency or currencies) at any one time outstanding, and (ii) at any time at
which $10,000,000 or more of loans and credits permitted by this clause (e) are outstanding, the
aggregate amount of any other loans and credits permitted by this clause (e) shall not exceed the
Available Amount that is Not Otherwise Applied at the time such transaction is consummated (it
being understood that a single transaction may utilize amounts available, if any, under both
subclause (i) and subclause (ii) of this clause (e)).

     “Permitted Merger” shall mean (a) an acquisition or disposal by way of merger provided that
the acquisition or disposal is a Permitted Acquisition or a Permitted Disposal, as the case may be;
(b) an amalgamation, demerger, merger, consolidation or corporate reconstruction on a solvent basis
of a member of the Group where all of the business and assets of that member remain within the
Group and if that member of the Group was an Obligor immediately prior to that amalgamation,
demerger, merger, consolidation or corporate reconstruction, all of the business and assets of that
member are retained by one or more other Obligors or a company which becomes an Obligor upon such
merger, and (i) the surviving entity of that amalgamation, demerger, merger, consolidation or
corporate reconstruction is liable for the obligations of the member of the Group it has merged
with; and (ii) the surviving entity of that amalgamation, demerger, merger, consolidation or
corporate reconstruction is incorporated in the same jurisdiction as that member of the Group; (c)
a divestiture or other corporate reconstruction of a member of the Group to the extent (i) required
by a Governmental Authority or (ii) pursuant to the Synergies Implementation Plan, in each case in
connection with the Merger; or (d) an amalgamation, demerger, merger, consolidation or corporate
reconstruction on a solvent basis of any members of the Group that are not Obligors.

     “Permitted Refinancing Indebtedness” shall mean any Financial Indebtedness issued in exchange
for, or the net proceeds of which are used to extend, refinance, renew, replace, defease or refund
(collectively, to “Refinance”), the Financial Indebtedness being Refinanced (or previous
refinancings thereof constituting Permitted Refinancing Indebtedness); provided that (a) the
principal amount (or accreted value, if applicable) of such Permitted Refinancing Indebtedness does
not exceed the principal amount (or accreted value, if applicable) of the Financial Indebtedness so
Refinanced (plus any unpaid accrued interest and premium thereon and any underwriting discounts,
fees, commissions and expenses incurred in connection with such Refinancing); (b) each of the
stated maturity and the average life to maturity of such Permitted Refinancing Indebtedness is
greater than or equal to that of the Financial Indebtedness being Refinanced; (c) if the Financial
Indebtedness being Refinanced is subordinated in right of payment to the obligations under this
Agreement, such Permitted Refinancing Indebtedness shall be subordinated in right of payment to
such obligations on terms at least as favorable to the Lenders as those contained in the
documentation governing the Financial Indebtedness being Refinanced; (d) no Permitted Refinancing
Indebtedness shall have different obligors, or greater guarantees or security, than the Financial
Indebtedness being Refinanced; and (f) if the Financial Indebtedness being Refinanced is secured by
any collateral (whether equally and ratably with, or junior to, the Secured Parties or otherwise),
such Permitted Refinancing Indebtedness may be secured by such collateral on terms no less
favorable to the Secured Parties than those contained in the documentation governing the Financial
Indebtedness being Refinanced.

     “Permitted Security” shall mean (a) any Security granted pursuant to the terms of the Bridge
Facility or the U.S. First Lien Credit Agreement, so long as such Security applies only to all

- 18 -

 

or
any portion of the Collateral (but not to any other assets) pursuant to one or more security
agreements in accordance with the terms of the Intercreditor Agreement (or another intercreditor
agreement containing terms that, taken as a whole, are at least as favorable to the Secured
Parties as those contained in the Intercreditor Agreement); (b) any Security listed in Schedule
1.01(e) of the U.S. First Lien Credit Agreement except to the extent the principal amount secured
by that Security exceeds the amount as stated in that Schedule (or, if higher, the maximum amount
of the relevant facility as stated in that Schedule); (c) any netting or set-off arrangement
entered into by (i) any member of the Group in the ordinary course of its cash management
arrangements for the purpose of netting debit and credit balances or (ii) in connection with a
derivative transaction constituting Permitted Financial Indebtedness; (d) any lien arising by
operation of law and in the ordinary course of business; (e) any sale of receivables on recourse
terms or any Security constituted by any title transfer or retention of title or conditional sale
arrangements, in each case which are entered into by any member of the Group in the normal course
of its business up to a maximum aggregate amount of $50,000,000; (f) any Security or Quasi-Security
over or affecting any asset acquired by a member of the Group after the date of this Agreement if
(i) such Security or Quasi-Security was not created in contemplation of the acquisition of that
asset by a member of the Group, (ii) the principal amount (or, if higher, the maximum principal
amount of the relevant facility) secured has not been increased in contemplation of, or since the
acquisition of that asset by a member of the Group and (iii) such Security or Quasi-Security does
not apply to any other property or assets of the Borrower or any Subsidiary; (g) any Security or
Quasi-Security over or affecting any asset of any company which becomes a member of the Group after
the date of this Agreement, where the Security is created prior to the date on which that company
becomes a member of the Group, if: (i) such Security or Quasi-Security was not created in
contemplation of the acquisition of that company, (ii) the principal amount (or, if higher, the
maximum principal amount of the relevant facility) secured has not increased in contemplation of or
since the acquisition of that company and (iii) such Security or Quasi-Security does not apply to
any other property or assets of the Borrower or any Subsidiary (other than a Subsidiary so
acquired); (h) any Security or Quasi-Security entered into pursuant to any Finance Document; (i)
any Security created in respect of any tax assessment or governmental charge or claim provided that
(i) the aggregate amount secured by such Security is less than $50,000,000 (or its equivalent in
another currency or currencies), (ii) that such assessment, charge or claim has not yet become due
or is being contested in good faith, (iii) adequate reserves are being maintained for such
assessment, charge or claim, (iv) payment in respect of such assessment, charge or claim has not
yet become due or can be lawfully withheld and (v) any such assessment, charge or claim which
relates to an amount in excess of $7,500,000 (or its equivalent in another currency or currencies)
has been notified to the Facility Agent; (j) any Security to which the Facility Agent (acting on
the instructions of the Majority Lenders) shall have given prior written consent; (k) any Security
securing Financial Indebtedness arising or permitted under (i) clause (k) or (p) of the definition
of Permitted Financial Indebtedness, provided that such Security applies solely to property or
assets acquired with the proceeds of such Permitted Financial Indebtedness, or (ii) clause (g), (o)
or (r) of the definition of Permitted Financial Indebtedness; (l) any Security securing
indebtedness the principal amount of which (when aggregated with the principal amount of any other
indebtedness which has the benefit of Security given by any member of the Group other than any
permitted under clauses (a) to (k) above or (m) to (w) below) does not exceed $75,000,000 (or its
equivalent in another currency or currencies) at any one time outstanding, of which not more than
$25,000,000 (or its equivalent in another currency or currencies) may be senior to or pari passu
with the Transaction Security; (m) deposits made in the ordinary course of business in connection
with workers’ compensation, unemployment insurance and other types of social security, or to secure
the performance of statutory obligations, bids, leases, government contracts, trade contracts, and
other similar obligations (exclusive of obligations for the payment of borrowed money), so long as
no

- 19 -

 

foreclosure, sale or similar proceedings have been commenced with respect to any portion of the
Transaction Security on account thereof; (n) any attachment or judgment Security not constituting
an Event of Default under paragraph (p) of Article VII and being contested in good faith or
discharged within 60 days; (o) licenses (with respect to Intellectual Property and other property),
leases or subleases granted to third parties in accordance with any applicable terms of the Finance
Documents and not interfering in any material respect with the ordinary conduct of the business of
the Borrower or any of its Subsidiaries or resulting in a material diminution in the value of any
Transaction Security as security for the obligations under the Finance Documents; (p) easements,
rights-of-way, restrictions, encroachments, and other minor defects or irregularities in title, in
each case which do not and will not interfere in any material respect with the ordinary conduct of
the business of the Borrower or any of its Subsidiaries or result in a material diminution in the
value of any Transaction Security as security for the obligations under the Finance Documents; (q)
any (i) interest or title of a lessor or sublessor under any lease not prohibited by this
Agreement, (ii) Security or restriction that the interest or title of such lessor or sublessor may
be subject to, or (iii) subordination of the interest of the lessee or sublessee under such lease
to any Security or restriction referred to in the preceding clause (ii), so long as the holder of
such Security or restriction agrees to recognize the rights of such lessee or sublessee under such
lease; (r) Security arising from filing UCC financing statements relating solely to operating
leases not prohibited by this Agreement; (s) Security over rental deposits in respect of any
property leased or licensed by a member of the Group in the ordinary course of business; (t) any
zoning or similar law or right reserved to or vested in any Government Authority to control or
regulate the use of any real property; (u) Security securing obligations (other than obligations
representing Financial Indebtedness for borrowed money) under operating, reciprocal easement or
similar agreements entered into in the ordinary course of business of the Borrower and its
Subsidiaries; (v) Security over shares in a Permitted Joint Venture or Permitted Investment to
secure obligations to the other Joint Venture partners or other investors in such Permitted
Investment, as applicable; or (w) Security over bank accounts granted pursuant to such bank’s
standard terms and conditions for deposit accounts.

     “Permitted Share Issue” shall mean (a) the issue of Equity Interests in connection with the
Merger pursuant to the terms of the Merger transaction documents; (b) the issue of Equity Interests
pursuant to any warrants, rights, options, convertible debt securities or any other convertible
securities (including pursuant to any anti-dilution provisions contained in the agreements
governing such securities) issued by the Borrower or CGG Veritas Services Inc. and outstanding on
the Closing Date; (c) the issue by the Borrower of any Equity Interests pursuant to any share
option scheme or issue of free shares to senior management of the Group; (d) distributions in the
form of common or perpetual preferred Equity Interests by any member of the Group (other than the
Borrower) to its shareholders or equityholders on a pro rata basis; (e) the issue (i) of Equity
Interests by an Obligor to an Obligor; (ii) of Equity Interests by a non-Obligor to a non-Obligor;
(iii) of common or perpetual preferred Equity Interests by an Obligor to a non-Obligor; (iv) of
Equity Interests by a wholly owned non-Obligor, in connection with the CGG Services SA Project and
the CGG Services Holding Project, to an Obligor in exchange for consideration consisting solely of
non-Cash and non-Cash Equivalent Investments; and (v) of common or perpetual preferred Equity
Interests issued in connection with a Permitted Acquisition under clauses (c) or (d) of the
definition thereof; (f) the issue by the Borrower of its own Equity Interests (other than
Disqualified Stock) or warrants, rights and/or options for such Equity Interests; (g) the issue of
Equity Interests of Sercel Holding (including, without limitation, to effect an initial public
offering thereof), provided that such transaction results in a release of the relevant Sercel
Companies as guarantors of the Existing Bonds pursuant to Section 10.04 of the Existing Bond
Indenture and as

- 20 -

 

Guarantors hereunder; or (h) the issue of common or perpetual preferred Equity
Interests in connection with any Qualifying Business Disposal.

     “person” shall mean any natural person, corporation, business trust, joint venture,
association, company, limited liability company, partnership, Governmental Authority or other
entity.

     “Plan” shall mean any employee pension benefit plan (other than a Multiemployer Plan) subject
to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in
respect of which any U.S. Group Member or any ERISA Affiliate is (or, if such plan were terminated,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.

     “Pledge and Security Agreement (Canada)” shall mean the pledge and security agreement (Canada)
shall mean the guarantee agreement defined in Schedule 4, paragraph (2), entered in the agreed
form.

     “Pledge and Security Agreement (U.S.)” shall mean the pledge and security agreement (U.S.)
shall mean the guarantee agreement defined in Schedule 4, paragraph (9), entered in the agreed
form.

     “Pro Rata Percentage” of any Revolving Credit Lender at any time shall mean the percentage of
the Total Revolving Credit Commitment represented by such Lender’s Revolving Credit Commitment. In
the event the Revolving Credit Commitments shall have expired or been terminated, the Pro Rata
Percentages shall be determined on the basis of the Revolving Credit Commitments most recently in
effect, giving effect to any subsequent assignments or transfers.

     “Protected Party” shall mean a Finance Party which is or will be subject to any liability, or
required to make any payment, for or on account of Tax in relation to a sum received or receivable
(or any sum deemed for the purposes of Tax to be received or receivable) under a Finance Document.

     “Qualifying Acquisition” shall mean an acquisition of any business or not less than 75% of the
issued Equity Interests of a limited liability company or corporation (or, as applicable in a
jurisdiction outside the United States, an organization having an equivalent status in such
jurisdiction), provided that (a) if the relevant company, business, undertaking, person,
partnership or similar arrangement had been consolidated, on a pro forma basis, in the most recent
set of consolidated financial statements delivered by the Borrower in accordance with Section 5.01,
all requirements of Section 6.02(a) and (b) would have been satisfied on the date that such
requirements were tested by reference to such consolidated financial statements in accordance with
Section 6.02(c); (b) the relevant company, business, undertaking, person, partnership or similar
arrangement carries on, or is, a business (x) substantially the same as that carried on by the
Group or (y) providing services or software products to the oil and gas industry or manufacturing
equipment for use by the oil and gas industry (or any business that is reasonably complementary or
related thereto); and (c) after giving effect to such acquisition, (i) the sum of (x) the amount of
unused and available Revolving Credit Commitments (as defined in the U.S. First Lien Credit
Agreement) plus (y) the unused and available commitments under the U.S. First Lien Credit Agreement
shall not be less than $100,000,000 and (ii) the Total Leverage Ratio calculated on a pro forma
basis for the most recently ended Relevant Period shall be no greater than the Total Leverage Ratio
on the Signing Date.

- 21 -

 

     “Qualifying Business Disposal” shall mean a sale, demerger or other disposal of all or any
portion of a business of the Group, including, without limitation, any reorganization of such
business (including, without limitation, by means of intra-Group transfers of assets and
liabilities)
as is required or advisable in connection with such sale, demerger or other disposal, provided
that such sale, demerger or other disposal (a) relates only to the assets of non-Obligors or shares
issued by non-Obligors, (b) does not involve, in the aggregate with all other such sales, demergers
and other disposals, a business or businesses (or any portion of such business or businesses) the
EBITDA of which constituted greater than 10% of the Group’s consolidated EBITDA during the most
recently ended Relevant Period, (c) is made for fair market value and (d) is made for at least 75%
cash consideration; provided further that, for purposes of clauses (c) and (d) above, the amount of
any Financial Indebtedness of a non-Obligor (as shown on the Borrower’s or such non-Obligor’s most
recent balance sheet or in the notes thereto) that is assumed by the transferee of the business (or
portion thereof) being sold, demerged or otherwise disposed of shall be deemed to be cash.

     “Qualifying Lender” shall mean a Lender which (i) has its Facility Office in France or (ii)
fulfils the conditions imposed by French Law taking into account, as the case may be, any double
taxation agreement in force on the relevant date (subject to the completion of any necessary
procedural formalities), in order for a payment not to be subject to (or as the case may be, to be
exempt from) any Tax Deduction.

     “Quarter Date” shall mean the last day of a Financial Quarter.

     “Quarterly Financial Statement” shall mean the financial statements delivered pursuant to
Section 5.01.

     “Quasi-Security” shall have the meaning assigned to such term in Section 6.07(a).

     “Quotation Day” means, in relation to any period for which an interest rate is to be
determined:

     (a) other than in relation to a Swingline Loan, (if the currency is euro) two TARGET
Days before the first day of that period; or

     (b) (if the currency is dollar) two Business Days before the first day of that
period,

unless market practice differs in the Relevant Interbank Market for a currency, in which case the
Quotation Day for that currency will be determined by the Facility Agent in accordance with market
practice in the Relevant Interbank Market (and if quotations would normally be given by leading
banks in the Relevant Interbank Market on more than one day, the Quotation Day will be the last of
those days).

     “Receiver” shall mean a receiver or receiver and manager or administrative receiver of the
whole or any part of the Collateral.

     “Reference Banks” means, in relation to LIBOR, the principal London offices of Lloyds TSB,
Barclays Bank PLC and ING Bank N.V. and, in relation to EURIBOR and EONIA, the principal office in
France of HSBC France, BNP Paribas and Calyon or such other banks as may be appointed by the
Facility Agent in consultation with the Borrower.

     “Register” shall have the meaning assigned to such term in Section 9.04(d).

- 22 -

 

     “Related Parties” shall mean, with respect to any specified person, such person’s Affiliates
and the respective directors, trustees, officers, employees, agents and advisors of such person and
such person’s Affiliates.

     “Release” shall mean any release, spill, emission, leaking, dumping, injection, pouring,
deposit, disposal, discharge, dispersal, leaching or migration into or through the environment or
within or upon any building, structure, facility or fixture.

     “Relevant Interbank Market” means in relation to euro, the European interbank market and, in
relation to any other currency, the London interbank market.

     “Relevant Jurisdiction” shall mean, in relation to an Obligor (a) its jurisdiction of
incorporation; (b) any jurisdiction where any asset subject to or intended to be subject to the
Transaction Security to be created by it is situated; (c) any jurisdiction where it conducts its
business; and (d) the jurisdiction whose laws govern the perfection of any of the Security
Documents entered into by it.

     “Relevant Period” shall mean (a) each period of twelve months ending on the last day of the
Borrower’s financial year; and (b) each period of twelve months ending on the last day of each
Financial Quarter of the Borrower’s Fiscal Year.

     “Responsible Officer” of any person shall mean any executive officer or Financial Officer of
such person and any other officer or similar official thereof responsible for the administration of
the obligations of such person in respect of this Agreement.

     “Restricted Payment” shall have the meaning given such term in Section 6.12.

     “Revolving Credit Borrowing” shall mean a Borrowing comprised of Revolving Loans.

     “Revolving Credit Commitment” shall mean, with respect to each Lender, the commitment of such
Lender to make Revolving Loans hereunder as set forth on Schedule 1, to the extent not cancelled,
reduced or transferred by that Lender under this Agreement.

     “Revolving Credit Exposure” shall mean, with respect to any Lender at any time, the aggregate
principal amount at such time of all outstanding Revolving Loans (other than Swingline Loans) of
such Lender, plus the aggregate amount at such time of such Lender’s Swingline Exposure.

     “Revolving Credit Lender” shall mean a Lender with a Revolving Credit Commitment or an
outstanding Revolving Loan.

     “Revolving Credit Maturity Date” shall mean February 7, 2012.

     “Revolving Facility” shall mean the revolving credit facility made available to the Borrower
pursuant to this Agreement in an aggregate principal amount not to exceed $200,000,000 (or its
equivalent in another currency or currencies) including a sub swingline credit facility in an
aggregate principal amount not to exceed $50,000,000.

     “Revolving Loans” shall mean the revolving loans made by the Lenders to the Borrower pursuant
to Section 2.01 (Commitments).

- 23 -

 

     “Rollover Loan” means one or more Loans (a) made or to be made on the same day that a Maturing
Loan is due to be repaid, (b) the aggregate amount of which is equal to or less than the Maturing
Loan, (c) in the same currency as the Maturing Loan, and (d) made or to be made to the Borrower for
the purpose of refinancing a Maturing Loan.

     “Screen Rate” shall mean (a) in relation to LIBOR, the British Bankers Association Interest
Settlement Rate for the relevant currency and period and (b) in relation to EURIBOR, the percentage
rate per annum determined by the Banking Federation of the European Union for the relevant period,
(a) and (b) displayed on the appropriate page of the Reuters screen. If the agreed page is
replaced or service ceases to be available, the Facility Agent may specify another page or service
displaying the appropriate rate after consultation with the Borrower and the Lenders.

     “Secured Parties” shall have the meaning assigned to such term in any Security Document.

     “Security” shall mean a mortgage, charge, pledge, lien, assignment or other security interest
securing any obligation of any person or any other agreement or arrangement having a similar
effect.

     “Security Documents” shall mean the Initial Security Documents and each of the security
agreements, mortgages and other instruments and documents executed and delivered pursuant to any of
the foregoing or pursuant to Section 5.20 (including the Naval Mortgage between CGG Marine
Resources Norge AS as Shipowner and Credit Suisse as Collateral Agent, the Deed of Covenants
between CGG Marine Resources Norge AS as Owner and Credit Suisse as Mortgagee, the Assignment of
Charters and Earnings to be executed by CGG Marine Resources Norge AS as Assignor and the
Assignment of Insurances to be executed by CGG Marine Resources Norge AS as Assignor, each of which
is to be entered into in the agreed form), together with any other document entered into by any
Obligor creating or expressed to create any Security over all or any part of its assets in respect
of the obligations of any of the Obligors under any of the Finance Documents.

     “Sercel Company” means (a) Sercel S.A., a French limited liability corporation (registration
number 378 040 497 RCS Nantes), (b) Sercel Inc., a Texas corporation, (c) Sercel Holding, (d)
Sercel Australia Pty Ltd, an Australian company, (e) Sercel Canada Ltd, a Canadian company, and/or
(f) any successor by merger of any of the foregoing.

     “Sercel Holding Equity Issuance” shall mean any Equity Issuance by Sercel Holding.

     “Sercel Holding” means any holding company (including Sercel Holding S.A., a French limited
liability corporation (registration number 866 800 756 RCS Nantes) that holds all of the
outstanding capital stock of either or both of Sercel S.A., a French limited liability corporation
(registration number 378 040 497 RCS Nantes), and Sercel Inc., a Texas corporation (other than
directors’ qualifying shares and capital stock held by other statutorily required minority
shareholders), and that does not hold any capital stock in any other Subsidiary.

     “Shares” shall mean all the issued shares owned by any Obligor in the capital of (i) each
Subsidiary that is a “Guarantor” under and as defined in the Existing Bond Indenture, (ii) CGG
Veritas Services Inc., (iii) each first-tier material subsidiary of any Obligor and (iv) each U.S.
Subsidiary; provided, however, that, to the extent that the pledge of any greater percentage would
result in a material adverse tax consequence to any Obligor, no more than 65% of the voting Equity
Interests of any Non U.S. Subsidiary will constitute “Shares”; provided further that, to the

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extent that the constitutional documents of or contractual arrangements relating to such
subsidiary restrict or prohibit any transfer of its Equity Interests or the granting or enforcement
of Transaction Security (as such constitutional documents or contractual arrangements are in effect
on the Signing Date or, if later, the date on which such Equity Interests are acquired by the
applicable Obligor or Obligors, so long as such restriction or prohibition was not created in
contemplation of such acquisition), only such Equity Interests (if any) that may be pledged without
violating such constitutional documents or such contractual arrangements will constitute “Shares”.

     “Signing Date” shall mean the date of signing of this Agreement.

     “Solvent” shall have the meaning assigned to such term in Section 3.07(a).

     “S&P” shall mean Standard & Poor’s Ratings Service, or any successor thereto.

     “subsidiary” shall mean, with respect to any person (herein referred to as the “parent”), any
corporation, partnership, limited liability company, association or other business entity (a) of
which securities or other ownership interests representing more than 50% of the ordinary voting
power or more than 50% of the general partnership interests are, at the time any determination is
being made, owned, Controlled or held, or (b) that is, at the time any determination is made,
otherwise consolidated in the financial statements of the parent in accordance with IFRS.

     “Subsidiary” shall mean any subsidiary of the Borrower.

     “Swingline Commitment” shall mean the commitment of the Swingline Lenders to make loans
pursuant to Section 2.21 (Swingline Loans), as the same may be reduced from time to time pursuant
to Section 2.10 (Termination and Reduction of Commitments).

     “Swingline Exposure” shall mean, at any time, the aggregate principal amount at such time of
all outstanding Swingline Loans. The Swingline Exposure of any Revolving Credit Lender at any time
shall equal its Pro Rata Percentage of the aggregate Swingline Exposure at such time.

     “Swingline Lender” shall mean Natixis and BNP Paribas, in their capacity as lenders of
Swingline Loans hereunder.

     “Swingline Loan” shall mean any loan made by the Swingline Lenders pursuant to Section 2.21
(Swingline Loans).

     “Synergies Implementation Plan” shall mean a plan implemented by the Borrower and its
Subsidiaries to realize the $65,000,000 announced synergies in connection with the Merger.

     “Target” shall mean CGG Veritas Services Inc. (formerly named Trans Veritas DGC Inc.), a
Delaware corporation.

     “TARGET” shall mean Trans-European Automated Real-time Gross Settlement Express Transfer
payment system.

     “TARGET Day” shall mean any day on which TARGET is open for the settlement of payments in
euro.

     “Target Group” shall mean CGG Veritas Services Inc. and its subsidiaries.

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     “Tax Credit” shall mean a credit against, relief or remission for, or repayment of any Tax.

     “Tax Deduction” shall mean a deduction or withholding for or on account of Tax from a payment
under a Finance Document.

     “Tax Payment” shall mean an increased payment made by an Obligor to a Finance Party under
Section 2.19(a)(i) (Tax gross up) or a payment under Section 2.19(a)(ii) (Tax indemnity).

     “Tax” shall have the meaning given to it in Section 2.19(a) (Tax gross up and indemnities).

     “Total Interest Costs” shall mean, with respect to any person for any period, the sum, without
duplication, of the following: (a) the consolidated interest expense of such person and its
subsidiaries for such period, whether paid or accrued (including, without limitation, amortization
of original issue discount, non-cash interest payments, the interest component of any deferred
payment obligations, the interest component of all payments associated with capital lease
obligations, commissions, discounts and other fees and charges incurred in respect of letter of
credit or bankers’ acceptance financings, and net of all payments made but excluding amortization
of debt issuance costs and non-cash charges other than any non-cash interest expenses related to
convertible bonds) and (b) the consolidated interest expense of such person and its restricted
Subsidiaries that was capitalized during such period.

     “Total Leverage Ratio” shall mean the ratio of Total Net Debt (denominated in euro) and
divided by the euro/dollar closing exchange rate for the Relevant Period (as indicated in the
Borrower’s consolidated financial statements relating to the period ending on the last day of such
Relevant Period) to EBITDA (denominated in euro) and divided by the euro/dollar average exchange
rate for the Relevant Period (as indicated in the Borrower’s consolidated financial statements
relating to the period ending on the last day of such Relevant Period); provided that to the extent
any Permitted Disposal or any Permitted Acquisition has occurred during the Relevant Period, Total
Leverage Ratio shall be determined for the such Relevant Period on a pro forma basis for such
occurrences.

     “Total Net Debt” shall mean, at any time (without double counting), the aggregate
indebtedness, after deducting Cash of the Borrower, in respect of (a) moneys borrowed in respect of
bank debt (including, for the avoidance of doubt, the Bridge Facility, the U.S. First Lien
Facilities and the Revolving Facility); (b) all amounts outstanding under any Finance Document; (c)
any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures,
loan stock or any similar instrument; (d) any amount raised pursuant to any issue of shares which
are expressed to be redeemable and all obligations to purchase, retire, defease or otherwise
acquire for value any share capital of any person or any warrants, rights or options to acquire
such share capital before such date in respect of transactions which, in each such case, have the
commercial effect of a borrowing or which finance a member of the Group or the Group’s operations
or capital requirements; (e) the amount of any liability in respect of any Capital Lease
Obligations; (f) the amount of any liability in respect of any advance or deferred purchase
agreement if the primary reason for entering into such agreement is to raise finance; (g)
receivables sold or discounted (other than on a non-recourse basis); (h) any agreement or option to
re-acquire an asset if the primary reason for entering into such agreement or option is to raise
finance; and (i) any amount raised under any other transaction (including any forward sale or
purchase agreement) having the commercial effect of a borrowing, except for financing by trade
creditors; provided that any indebtedness for or in respect of any Permitted Guarantee shall not be
included in the calculation of “Total Net Debt” hereunder to the extent such indebtedness is not
due and payable.

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     “Total Revolving Credit Commitment” shall mean, at any time, the aggregate amount of the
Revolving Credit Commitments, as in effect at such time. The initial Total Revolving Credit
Commitment is $200,000,000 (it being understood and agreed that the Total Revolving Credit
Commitment include $50,000,000 for the Swingline Loan).

     “Transaction Security” shall mean the Security granted in favor of the Finance Parties by any
Obligor pursuant to each Security Document.

     “Transfer Agreement” shall mean an agreement substantially in the form set out in Schedule 2
or any other form agreed between the Facility Agent and the Borrower.

     “Transfer Date” shall mean, in relation to a transfer, the later of:

	 	(a)	 	the proposed Transfer Date specified in the Transfer Agreement; and
	 
	 	(b)	 	the date on which the Facility Agent executes the Transfer Agreement.

     “Treasury Transaction” shall mean any derivative transaction entered into pursuant to a
Hedging Agreement in connection with protection against or benefit from fluctuation in any rate or
price.

     “Treaty Lender” means a Lender which is entitled to a payment under a double taxation
agreement (subject to the completion of any necessary procedural formalities) without a Tax
Deduction.

     “USA PATRIOT Act” shall mean The Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L. No. 107-56
(signed into law October 26, 2001)) under the laws of the United States of America.

     “U.S. First Lien Credit Agreement” shall mean the first lien credit agreement dated January
12, 2007 entered into among CGG Veritas Services Inc. (formerly Volnay) as borrower, the Borrower
as Parent, the lenders from time to time party thereto and Credit Suisse, as Facility Agent and
Collateral Agent (as these terms are defined therein).

     “U.S. First Lien Facilities” shall mean the credit facilities made available to CGG Veritas
Services Inc. (formerly Volnay) pursuant to the U.S. First Lien credit Agreement in an aggregate
principal amount not to exceed $1,140,000,000 (or its equivalent in another currency or
currencies), as such amount may be increased from time to time pursuant to the terms thereof.

     “U.S. GAAP” shall mean generally accepted accounting principles in the United States.

     “U.S. Group Member” shall mean any member of the Group that is incorporated, resident or with
its principal place of business in the United States of America, any state thereof or the District
of Columbia, or which owns or leases property or otherwise conducts business in the United States
of America, any state thereof or the District of Columbia.

     “U.S. Person” shall mean a “United States Person” as defined in Section 7701(a)(30) of the
Code and includes the sole owner of any entity that is disregarded as being an entity separate from
such owner for U.S. federal income tax purposes.

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     “U.S. First Lien Security Documents” shall mean all security documents entered into by any
Obligor creating or expressed to create any Security over all or any part of its assets in respect
of the obligations of any of the Obligors in connection with the U.S. First Lien Credit Agreement.

     “U.S. Subsidiaries” shall mean all Subsidiaries incorporated or organized under the laws of
the United States of America, any State thereof or the District of Columbia.

     “Volnay” means Volnay Acquisition Co. I, a Delaware corporation.

     “Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a complete
or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle
E of Title IV of ERISA.

     “wholly owned Subsidiary” of any person shall mean a subsidiary of such person of which
securities (except for directors’ qualifying shares) or other ownership interests representing 100%
of the Equity Interests are, at the time any determination is being made, owned, Controlled or held
by such person or one or more wholly owned Subsidiaries of such person or by such person and one or
more wholly owned Subsidiaries of such person.

     SECTION 1.02. Terms Generally

     The definitions in Section 1.01 shall apply equally to both the singular and plural forms of
the terms defined. Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be
deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to
have the same meaning and effect as the word “shall”; and the words “asset” and “property” shall be
construed as having the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights. All references
herein to Articles, Sections, Exhibits and Schedules shall be deemed references to Articles and
Sections of, and Exhibits and Schedules to, this Agreement unless the context shall otherwise
require. Except as otherwise expressly provided herein, (a) any reference in this Agreement to any
Finance Document shall mean such document as amended, restated, supplemented or otherwise modified
from time to time and (b) to the extent not otherwise provided herein, all terms of an accounting
or financial nature shall be construed in accordance with IFRS, as in effect from time to time;
provided, however, that if the Borrower notifies the Facility Agent that the Borrower wishes to
amend any covenant in Article VI or any related definition to eliminate the effect of any change in
IFRS occurring after the date of this Agreement on the operation of such covenant (or if the
Facility Agent notifies the Borrower that the Majority Lenders wish to amend Article VI or any
related definition for such purpose), then the Borrower’s compliance with such covenant shall be
determined on the basis of IFRS in effect immediately before the relevant change in IFRS became
effective, until either such notice is withdrawn or such covenant is amended in a manner
satisfactory to the Borrower and the Majority Lenders. Unless a contrary indication appears, any
reference in this Agreement to (i) the “Facility Agent”, the “Collateral Agent”, any “Arranger”,
any “Finance Party”, any “Lender” or any “Obligor” shall be construed so as to include its
successors in title, permitted assigns and permitted transferees; (ii) “assets” includes present
and future properties, revenues and rights of every description; (iii) “corporate reconstruction”
includes in relation to any company any contribution of part of its business in consideration of
shares (apport partiel d’actifs) and any demerger (scission) implemented in accordance with
articles L.236-1 to L.236-24 of the French Code de Commerce; any merger and any transmission
universelle de patrimoine; (iv) a “Finance Document” or any other agreement or instrument is a
reference to that Finance Document or other agreement or instrument as amended,

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modified, supplemented, replaced or novated; (v) a “guarantee” includes any “cautionnement”,
“aval” and any “garantie” which is independent from the debt to which it relates; (vi)
“indebtedness” includes any obligation (whether incurred as principal or as surety) for the payment
or repayment of money, whether present or future, actual or contingent; (vii) “merger” includes any
fusion implemented in accordance with articles L.236-1 to L.236-24 of the French Code de Commerce
or any merger implemented in accordance with the Delaware General Corporation Law; (viii) a
“regulation” includes any regulation, rule, official directive, request or guideline (whether or
not having the force of law but if not having the force of law, compliance with which is customary
for the persons to whom it is addressed) of any governmental, intergovernmental or supranational
body, agency, department or regulatory, self-regulatory or other authority or organization; (ix) a
“security interest” includes any type of security (sûreté réelle) and transfer by way of security.
Unless a contrary indication appears, a term used in any other Finance Document or in any notice
given under or in connection with any Finance Document has the same meaning in that Finance
Document or notice as in this Agreement and (x) and (x) “agreed form” shall mean a document which
is previously agreed in writing by or on behalf of the Borrower and the Mandated Lead Arranger or
if not so agreed, is in the form specified by the Facility Agent. A Default (including an Event of
Default) is “continuing” if it has not been remedied or waived.

     SECTION 1.03. Intercreditor Agreement

     This Agreement shall be read and construed in accordance with the terms of the Intercreditor
Agreement. In the case of any inconsistency between the terms of this Agreement and the
Intercreditor Agreement, the terms of the Intercreditor Agreement shall prevail.

ARTICLE II

The Credits

     SECTION 2.01. Commitments

     (a) Subject to the terms and conditions and relying upon the representations and
warranties herein set forth to make Revolving Loans to the Borrower, at any time and from time to
time on and after the date hereof, and until the earlier of the Revolving Credit Maturity Date and
the termination of the Revolving Credit Commitment of such Lender in accordance with the terms
hereof, in an aggregate principal amount at any time outstanding that will not result in such
Lender’s Revolving Credit Exposure exceeding such Lender’s Revolving Credit Commitment. Within the
limits set forth above and subject to the terms, conditions and limitations set forth herein, the
Borrower may borrow, pay or prepay and reborrow Revolving Loans.

     (b) The obligations of each Finance Party under the Finance Documents are several.

     SECTION 2.02. Loans

     (a) Each Loan (other than Swingline Loans) shall be made as part of a Borrowing
consisting of Loans made by the Lenders ratably in accordance with their applicable Commitments;
provided, however, that the failure of any Lender to make any Loan shall not in itself relieve any
other Lender of its obligation to lend hereunder (it being understood, however, that no Lender
shall be responsible for the failure of any other Lender to make any Loan required to be made by
such other Lender). The Loans comprising any Borrowing shall be in an aggregate

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principal amount that is (i) an integral multiple of $1,000,000 and not less than $5,000,000
or (ii) equal to the remaining available balance of the applicable Commitments.

     (b) Subject to Section 2.02(f), Section 2.09 and Section 2.14 each Borrowing (other
than Swingline Loans) shall be comprised entirely of dollar Loans or euro Loans (or euro Loan only
in the case of Swingline Loan) as the Borrower may request pursuant to Section 2.03 or, in the case
of Swingline Loans, Section 2.21. Each Lender may at its option make any Loan by causing any
domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that, subject to
Section 2.20(b), any exercise of such option shall not affect the obligation of the Borrower to
repay such Loan in accordance with the terms of this Agreement. Multiple Borrowings may be
outstanding at the same time; provided, however, that no Borrower shall be entitled to request any
Borrowing that, if made, would result in more than 8 Borrowings outstanding hereunder at any time.
For purposes of the foregoing, Borrowings having different Interest Periods, regardless of whether
they commence on the same date, shall be considered separate Borrowings.

     (c) Each Lender shall make each Loan to be made by it hereunder on the proposed date
thereof by wire transfer of immediately available funds to such account in Paris as the Facility
Agent may designate not later than 1:00 p.m., Paris time, and the Facility Agent shall promptly
credit the amounts so received to an account designated by the Borrower in the applicable Borrowing
Request or, if a Borrowing shall not occur on such date because any condition precedent herein
specified shall not have been met, return the amounts so received to the respective Lenders.

     (d) Unless the Facility Agent shall have received notice from a Lender prior to the
date of any Borrowing that such Lender will not make available to the Facility Agent such Lender’s
portion of such Borrowing, the Facility Agent may assume that such Lender has made such portion
available to the Facility Agent on the date of such Borrowing in accordance with paragraph (c)
above and the Facility Agent may, in reliance upon such assumption, make available to the Borrower
on such date a corresponding amount. If the Facility Agent shall have so made funds available then,
to the extent that such Lender shall not have made such portion available to the Facility Agent,
such Lender and the Borrower severally agree to repay to the Facility Agent forthwith on demand
such corresponding amount together with interest thereon, for each day from the date such amount is
made available to the Borrower to but excluding the date such amount is repaid to the Facility
Agent at (i) in the case of the Borrower, a rate per annum equal to the interest rate applicable at
the time to the Loans comprising such Borrowing and (ii) in the case of such Lender, a rate
determined by the Facility Agent to represent its cost of overnight or short-term funds (which
determination shall be conclusive absent manifest error). If such Lender shall repay to the
Facility Agent such corresponding amount, such amount shall constitute such Lender’s Loan as part
of such Borrowing for purposes of this Agreement.

     (e) Notwithstanding any other provision of this Agreement, the Borrower shall not be
entitled to request any Revolving Credit Borrowing if the Interest Period requested with respect
thereto would end after the Revolving Credit Maturity Date.

     (f) Notwithstanding any other provision of this Agreement, the Borrower shall not be
entitled to request any Revolving Credit Borrowing in euro if the requested amount, when converted
into dollars at the Facility Agent’s spot rate, would exceed the available amount of the
Commitments as set out in dollars.

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     SECTION 2.03. Borrowing Procedure

     In order to request a Borrowing (other than a Swingline Loan), the Borrower shall notify the
Facility Agent of such request by telephone not later than 11:00 a.m., Paris time, three Business
Days before a proposed Borrowing. Each such telephonic request shall be irrevocable, and shall be
confirmed promptly by hand delivery or fax to the Facility Agent of a written Borrowing Request and
shall specify the following information: (i) whether the Borrowing then being requested is to be a
dollar or a euro Borrowing; (ii) the date of such Borrowing (which shall be a Business Day); (iii)
the number and location of the account to which funds are to be disbursed; (iv) the amount of such
Borrowing; and (v) the Interest Period with respect thereto; provided, however, that,
notwithstanding any contrary specification in any Borrowing Request, each requested Borrowing shall
comply with the requirements set forth in Section 2.02. If no Interest Period with respect to any
Borrowing is specified in any such notice, then the Borrower shall be deemed to have selected an
Interest Period of one month’s duration. The Facility Agent shall promptly advise the applicable
Lenders of any notice given pursuant to this Section 2.03 (and the contents thereof), and of each
Lender’s portion of the requested Borrowing.

     SECTION 2.04. Evidence of Debt; Repayment of Loans

     (a) The Borrower hereby unconditionally promises to repay to the Facility Agent for
the account of each Lender (i) each Loan (including Swingline Loans) on the last day of its
Interest Period and (ii) each Revolving Loan then outstanding on the Revolving Credit Maturity
Date. The Borrower hereby promises to repay to the Swingline Lenders each Swingline Loan then
outstanding on the Revolving Credit Maturity Date.

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

     (c) The Facility Agent shall maintain accounts in which it will record (i) the
amount of each Loan made hereunder and, if applicable, the Interest Period applicable thereto, (ii)
the amount of any principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iii) the amount of any sum received by the Facility Agent
hereunder from the Borrower or any Guarantor and each Lender’s share thereof.

     (d) The entries made in the accounts maintained pursuant to paragraphs (b) and (c)
above shall, absent manifest error, be prima facie evidence of the existence and amounts of the
obligations therein recorded; provided, however, that the failure of any Lender or the Facility
Agent to maintain such accounts or any error therein shall not in any manner affect the obligations
of the Borrower to repay the Loans in accordance with their terms.

     (e) Without prejudice to the relevant Borrower’s obligation to repay the full amount
of each Revolving Loan on the applicable repayment date, where, on the same day on which the
Borrower is due to repay a Revolving Loan (a “Maturing Loan”) the Borrower has also requested that
a Rollover Loan in the same currency as the Maturing Loan be made to it subject to the Lenders
being obliged to make such Rollover Loan under Article IV (Conditions of Lending), the amount to be
so repaid and the amount to be so drawn down shall be netted off against each other so that the
amount which that Borrower is actually required to repay or, as the case may be, the amount which
the Lenders are actually required to advance to such Borrower, shall be the net

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amount remaining after such netting off. Subject to the provisions of this Agreement, any
amount repaid under the Revolving Facility shall be capable of being redrawn until the Revolving
Credit Maturity Date.

     (f) The Borrower may not request any Swingline Loan under the Facility which would
exceed $50,000,000 or which would, if so made, cause the aggregate amount of all outstanding
Swingline Loans (together with the requested Swingline Loans) to exceed $50,000,000.

     (g) The Borrower may not request more than one (1) Swingline Loan at any one time.

     (h) The Borrower may not request any Swingline Loan under the Facility which would,
together with all outstanding Revolving Loans exceed USD 200,000,000.

     SECTION 2.05. Fees

     (a) The Borrower agrees to pay to each Lender, through the Facility Agent, on the
last Business Day of March, June, September and December in each year and on each date on which any
Revolving Credit Commitment of such Lender shall expire or be terminated as provided herein, the
Commitment Fee in effect from time to time on the daily undrawn and uncancelled amount of the
Revolving Credit Commitment of such Lender during the preceding quarter (or other period commencing
with the date hereof or ending with the Revolving Credit Maturity Date or the date on which the
Revolving Credit Commitments of such Lender shall expire or be terminated). All Commitment Fees
shall be computed on the basis of the actual number of days elapsed in a year of 360 days. For
purposes of calculating Commitment Fees only, no portion of the Revolving Credit Commitments shall
be deemed utilized as a result of outstanding Swingline Loans.

     (b) The Borrower agrees to pay to the Facility Agent the participation fees equal to
zero point sixty seven percent (0.67%) of the participation of each Lender (the “Participation
Fee”) and the arrangement fees equal to zero point thirty three percent (0.33%) of the
participation of each Lender (the “Arrangement Fee”).

     (c) The Borrower agrees to pay to the Facility Agent, for its own account, the
administrative fees set forth in the Fee Letter at the times and in the amounts specified therein
(the “Facility Agent Fees”).

     (d) All Fees shall be paid on the dates due, in immediately available funds, to the
Facility Agent for distribution, if and as appropriate, among the Lenders. Once paid, none of the
Fees shall be refundable under any circumstances.

     SECTION 2.06. Interest on Loans

     (a) Subject to the provisions of Section 2.07, the Revolving Loans (other than
Swingline Loans), shall bear interest (computed on the basis of the actual number of days elapsed
over a year of 360 days) at a rate per annum equal to the aggregate of:

	(i)	 	the applicable Margin;
	 
	(ii)	 	EURIBOR in relation to Loans made in euro and LIBOR in relation to Loans made in
dollar for the relevant Interest Period; and

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	(iii)	 	Mandatory Costs, if any.

     (b) Subject to the provisions of Section 2.07, the Swingline Loans shall bear
interest (computed on the basis of the actual number of days elapsed over a year of 360 days) at a
rate per annum equal to the aggregate of:

	(i)	 	the applicable Margin;
	 
	(ii)	 	the EONIA applicable for each day of the relevant Interest Period; and
	 
	(iii)	 	the Mandatory Cost (if any).

     (c) Interest on each Loan shall be payable on the Interest Payment Dates applicable
to such Loan except as otherwise provided in this Agreement.

     SECTION 2.07. Default Interest

     If the Borrower shall default in the payment of any principal of or interest on any Loan or
any other amount due hereunder, by acceleration or otherwise, or under any other Finance Document,
then, until such defaulted amount shall have been paid in full, to the extent permitted by law, all
amounts outstanding under this Agreement and the other Finance Documents shall bear interest (after
as well as before judgment), payable on demand, (a) in the case of principal, at the rate otherwise
applicable to such Loan pursuant to Section 2.06 plus 1.00% per annum. Default interest (if unpaid)
arising on an overdue amount will be compounded with the overdue amount only if, within the meaning
of Article 1154 of the French Code Civil, such interest is due for a period of at least one year,
but will remain immediately due and payable.

     SECTION 2.08. Effective Global Rate (Taux Effectif Global)

     For the purposes of Articles L313-1 et seq, R 313-1 and R313-2 of the Code de la Consommation,
the Parties acknowledge that by virtue of certain characteristics of the Facility (and in
particular the variable interest rate applicable to Loans and the Borrower’s right to select the
currency and the duration of the Interest Period of each Loan) the taux effectif global cannot be
calculated at the date of this Agreement. However, the Borrower acknowledges that it has received
from the Facility Agent a letter containing an indicative calculation of the taux effectif global,
based on figured examples calculated on assumptions as to the taux de période and durée de période.
The Parties acknowledge that this letter forms part of this Agreement.

     SECTION 2.09. Alternate Rate of Interest

     In the event, and on each occasion, that on the day two Business Days prior to the
commencement of any Interest Period for a Borrowing (other than a Swingline Loan) or the day prior
to the commencement of any Interest Period for a Swingline Loan, the Facility Agent shall have
determined that dollar or euro deposits in the principal amounts of the Loans comprising such
Borrowing are not generally available in the London interbank market or European interbank market,
or that the rates at which such dollar or euro deposits are being offered will not adequately and
fairly reflect the cost to any Lender of making or maintaining its Loan during such Interest
Period, the Facility Agent shall, as soon as practicable thereafter, give written or fax notice of
such determination to the Borrower and the Lenders. In the event of any such determination, until
the Facility Agent shall have advised the Borrower and the Lenders that the circumstances giving
rise

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to such notice no longer exist, any request by the Borrower for a Borrowing pursuant to
Section 2.03. Each determination by the Facility Agent under this Section 2.09 shall be conclusive
absent manifest error.

     SECTION 2.10. Termination and Reduction of Commitments

     (a) The Revolving Credit Commitments including the Swingline Commitments shall
automatically terminate on the Revolving Credit Maturity Date.

     (b) Upon at least three Business Days’ prior irrevocable written or fax notice to
the Facility Agent, the Borrower may at any time in whole permanently terminate, or from time to
time in part permanently reduce, the Revolving Credit Commitments or the Swingline Commitment;
provided, however, that (i) each partial reduction of the Revolving Credit Commitments shall be in
an integral multiple of $1,000,000 and in a minimum amount of $5,000,000, (ii) each partial
reduction of the Swingline Commitment shall be in an integral multiple of $1,000,000 and in a
minimum amount of $1,000,000 and (iii) the Total Revolving Credit Commitment shall not be reduced
to an amount that is less than the Aggregate Revolving Credit Exposure at the time.

     (c) Each reduction in the Revolving Credit Commitments hereunder shall be made
ratably among the Lenders in accordance with their respective applicable Commitments. The Borrower
shall pay to the Facility Agent for the account of the applicable Lenders, on the date of each
termination or reduction, the Commitment Fees on the amount of the Commitments so terminated or
reduced accrued to but excluding the date of such termination or reduction.

     SECTION 2.11. Conversion of Borrowings not denominated in dollar

     The Borrower hereby irrevocably agrees and undertakes that at any time, the aggregate
principal amount of any Borrowing denominated in euro converted into dollar at the Facility Agent’s
spot rate of exchange together with the aggregate principal amount of all the Borrowings
denominated in dollar shall not exceed the Total Revolving Credit Commitment. Should it be the
case, the Facility Agent shall inform thereof and the Borrower shall repay the difference between
the aggregate principal amount of all Borrowings and the total Revolving Credit Commitment within
two (2) Business Days as from the date of receipt of the notification by the Facility Agent.

     SECTION 2.12. Optional Prepayment

     (a) The Borrower shall have the right at any time and from time to time to prepay
any Borrowing (other than a Swingline Loan), in whole or in part, upon at least three Business
Days’ prior written or fax notice (or telephone notice promptly confirmed by written or fax
notice); provided, however, that each partial prepayment shall be in an amount that is an integral
multiple of $1,000,000 (or its equivalent in any other currency or currencies) and not less than
$5,000,000 (or its equivalent in any other currency or currencies).

     (b) Each notice of prepayment shall specify (i) the prepayment date and (ii) the
principal amount of each Borrowing (or portion thereof) to be prepaid, shall be irrevocable and
shall commit the Borrower to prepay such Borrowing by the amount stated therein on the date stated
therein. All prepayments under this Section 2.12 shall be subject to Section 2.15 but otherwise
without premium or penalty. All prepayments under this Section 2.12 shall be accompanied by accrued
and unpaid interest on the principal amount to be prepaid to but excluding the date of payment.

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     SECTION 2.13. Reserve Requirements; Change in Circumstances

     (a) Notwithstanding any other provision of this Agreement, if any Change in Law
shall impose, modify or deem applicable any reserve, special deposit or similar requirement against
assets of, deposits with or for the account of or credit extended by any Lender or a reduction of
any amount due and payable under any Finance Document or shall impose on such Lender or the London
interbank market or the European interbank market any other condition affecting this Agreement or
Loans made by such Lender, and the result of any of the foregoing shall be to increase the cost to
such Lender of making or maintaining any Loan, then the Borrower will pay to such Lender upon
demand such additional amount or amounts as will compensate such Lender for such additional costs
incurred or reduction suffered unless such reduction is attributable to a Tax Deduction required by
law to be made by an Obligor.

     (b) If any Lender shall have determined that any Change in Law regarding capital
adequacy has or would have the effect of reducing the rate of return on such Lender’s capital or on
the capital of such Lender’s holding company, if any, as a consequence of this Agreement or the
Loans made by such Lender pursuant hereto to a level below that which such Lender or such Lender’s
holding company could have achieved but for such Change in Law (taking into consideration such
Lender’s policies and the policies of such Lender’s holding company with respect to capital
adequacy) by an amount deemed by such Lender to be material, then from time to time the Borrower
shall pay to such Lender, as the case may be, such additional amount or amounts as will compensate
such Lender or such Lender’s holding company for any such reduction suffered.

     (c) A certificate of a Lender setting forth the amount or amounts necessary to
compensate such Lender or its holding company, as applicable, as specified in paragraph (a) or (b)
above shall be delivered to the Borrower and shall be conclusive absent manifest error. The
Borrower shall pay such Lender the amount shown as due on any such certificate delivered by it
within 10 days after its receipt of the same.

     (d) Failure or delay on the part of any Lender to demand compensation for any
increased costs or reduction in amounts received or receivable or reduction in return on capital
shall not constitute a waiver of such Lender’s right to demand such compensation. The protection of
this Section shall be available to each Lender regardless of any possible contention of the
invalidity or inapplicability of the Change in Law that shall have occurred or been imposed.

     SECTION 2.14. Change in Legality

     If, at any time, it is or becomes unlawful in any applicable jurisdiction for a Lender to
perform any of its obligations as contemplated by this Agreement or to fund or maintain its
participation in any Loan:

     (a) that Lender shall promptly notify the Facility Agent upon becoming aware of that
event;

     (b) upon the Facility Agent notifying the Borrower, the Commitment of that Lender
will be immediately cancelled; and

     (c) the Borrower shall repay that Lender’s participation in the Loans made to the
Borrower on the last day of the Interest Period for each Loan occurring after the Facility Agent
has notified

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the Borrower or, if earlier, the date specified by the Lender in the notice delivered to the
Facility Agent (being no earlier than the last day of any applicable grace period permitted by
law).

     SECTION 2.15. Indemnity

     The Borrower shall indemnify each Lender against any loss or expense that such Lender may
sustain or incur as a consequence of (a) any event, other than a default by such Lender in the
performance of its obligations hereunder, which results in (i) such Lender receiving or being
deemed to receive any amount on account of the principal of any Loan prior to the end of the
Interest Period in effect therefor, or (ii) not being made after notice of such Loan shall have
been given by the Borrower hereunder (any of the events referred to in this clause (a) being called
a “Breakage Event”) or (b) any default in the making of any payment or prepayment required to be
made hereunder. In the case of any Breakage Event, such loss shall include an amount equal to the
excess, as reasonably determined by such Lender, of (i) its cost of obtaining funds for the Loan
that is the subject of such Breakage Event for the period from the date of such Breakage Event to
the last day of the Interest Period in effect (or that would have been in effect) for such Loan
over (ii) the amount of interest likely to be realized by such Lender in redeploying the funds
released or not utilized by reason of such Breakage Event for such period. A certificate of any
Lender setting forth any amount or amounts which such Lender is entitled to receive pursuant to
this Section 2.15 shall be delivered to the Borrower and shall be conclusive absent manifest error.

     SECTION 2.16. Pro Rata Treatment

     Except as provided below in this Section 2.16 with respect to Swingline Loans and as required
under Section 2.14 (Change in Legality), each Borrowing, each payment or prepayment of principal of
any Borrowing, each payment of interest on the Loans, each payment of the Commitment Fees,
Participation Fees or Arrangement Fees, each reduction of the Revolving Credit Commitments and each
conversion of any Borrowing to or continuation of any Borrowing as a Borrowing shall be allocated
pro rata among the Lenders in accordance with their respective applicable Commitments (or, if such
Commitments shall have expired or been terminated, in accordance with the respective principal
amounts of their outstanding Loans). For purposes of determining the available Revolving Credit
Commitments of the Lenders at any time, each outstanding Swingline Loan shall be deemed to have
utilized the Revolving Credit Commitments of the Lenders (including those Lenders which shall not
have made Swingline Loans) pro rata in accordance with such respective Revolving Credit
Commitments. Each Lender agrees that in computing such Lender’s portion of any Borrowing to be made
hereunder, the Facility Agent may, in its discretion, round each Lender’s percentage of such
Borrowing to the next higher or lower whole dollar amount.

     SECTION 2.17. Sharing among the Finance Parties

     (a) Payments to Finance Parties. If a Finance Party (a “Recovering Finance Party”)
receives or recovers any amount from an Obligor other than in accordance with Section 2.18
(Payments) and applies that amount to a payment due under the Finance Documents then: (i) the
Recovering Finance Party shall, within three Business Days, notify details of the receipt or
recovery, to the Facility Agent, (ii) the Facility Agent shall determine whether the receipt or
recovery is in excess of the amount the Recovering Finance Party would have been paid had the
receipt or recovery been received or made by the Facility Agent and distributed in accordance with
Section Section 2.18 (Payments), without taking account of any Tax which would be imposed on the
Facility Agent in relation to the receipt, recovery or distribution, and (iii) the Recovering

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Finance Party shall, within three Business Days of demand by the Facility Agent, pay to the
Facility Agent an amount (the “Sharing Payment”) equal to such receipt or recovery less any amount
which the Facility Agent determines may be retained by the Recovering Finance Party as its share of
any payment to be made, in accordance with Section 2.18(c) (Partial payments).

     (b) Redistribution of payments. The Facility Agent shall treat the Sharing Payment
as if it had been paid by the relevant Obligor and distribute it between the Finance Parties (other
than the Recovering Finance Party) in accordance with Section 2.18(c) (Partial payments).

     (c) Recovering Finance Party’s rights. (i) On a distribution by the Facility Agent
under Section 2.17(b) (Redistribution of payments), the Recovering Finance Party will be subrogated
to the rights of the Finance Parties which have shared in the redistribution which Finance Parties
agree that they will in that connection waive the benefit of Article 1252 of the French Code Civil.
(ii) If and to the extent that the Recovering Finance Party is not able to rely on its rights under
paragraph (i) above, the relevant Obligor shall be liable to the Recovering Finance Party for a
debt equal to the Sharing Payment which is immediately due and payable.

     (d) Reversal of redistribution. If any part of the Sharing Payment received or
recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance
Party, then (i) each Finance Party which has received a share of the relevant Sharing Payment
pursuant to under Section 2.17(b) (Redistribution of payments), shall, upon request of the Facility
Agent, pay to the Facility Agent for account of that Recovering Finance Party an amount equal to
the appropriate part of its share of the Sharing Payment (together with an amount as is necessary
to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing
Payment which that Recovering Finance Party is required to pay) and (ii) that Recovering Finance
Party’s rights of subrogation in respect of any reimbursement shall be cancelled and the relevant
Obligor will be liable to the reimbursing Finance Party for the amount so reimbursed.

     (e) Exceptions. (i) This Section 2.17 shall not apply to the extent that the
Recovering Finance Party would not, after making any payment pursuant to this Clause, have a valid
and enforceable claim against the relevant Obligor. (ii) A Recovering Finance Party is not obliged
to share with any other Finance Party any amount which the Recovering Finance Party has received or
recovered as a result of taking legal or arbitration proceedings, if (A) it notified that other
Finance Party of the legal or arbitration proceedings and (B) that other Finance Party had an
opportunity to participate in those legal or arbitration proceedings but did not do so as soon as
reasonably practicable having received notice and did not take separate legal or arbitration
proceedings.

     (f) Swingline Loans. Any loss incurred by a Swingline Lender under a Swingline Loan
shall be shared between all the Lenders pro rata to their Revolving Credit Commitment as set forth
in Section 2.21(d) (Participations).

     SECTION 2.18. Payments

     (a) Payment to the Facility Agent. The Borrower shall make each payment (including
principal of or interest on any Borrowing or any Fees or other amounts) hereunder and under any
other Finance Document not later than 3:00 p.m., Paris time, on the date when due in immediately
available dollars or euro as the case may be, without setoff, defense or counterclaim. Each such
payment (other than principal of and interest on Swingline Loans, which shall be paid directly to

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the Swingline Lenders except as otherwise provided in Section 2.21(d) (Participations) shall
be made to the Facility Agent at its offices at Paris.

     (b) Distribution by the Facility Agent. The Facility Agent shall promptly
distribute to each Lender any payments received by the Facility Agent on behalf of such Lender.

     (c) Partial payments. (i) If the Facility Agent receives a payment for application
against amounts due in respect of any Finance Documents that is insufficient to discharge all the
amounts then due and payable by an Obligor under those Finance Documents, the Facility Agent shall
apply that payment towards the obligations of that Obligor under those Finance Documents in the
following order: (1) first, in or towards payment pro rata of any unpaid fees, costs and expenses
of the Agent and the Mandated Lead Arranger and the Security Agent under those Finance Documents;
(2) secondly, in or towards payment pro rata of any accrued interest, fee or commission due but
unpaid under those Finance Documents; (3) thirdly, in or towards payment pro rata of any principal
due but unpaid under those Finance Documents; and (4) fourthly, in or towards payment pro rata of
any other sum due but unpaid under the Finance Documents. (ii) The Facility Agent shall, if so
directed by the Majority Lenders, vary the order set out in (2) to (4) above. (iii) Paragraphs (i)
and (ii) above will override any appropriation made by an Obligor.

     (d) Business Days. Except as otherwise expressly provided herein, whenever any
payment (including principal of or interest on any Borrowing or any Fees or other amounts)
hereunder or under any other Finance Document shall become due, or otherwise would occur, on a day
that is not a Business Day, such payment may be made on the next succeeding Business Day, and such
extension of time shall in such case be included in the computation of interest or Fees, if
applicable.

     SECTION 2.19. Tax

     (a) Tax Gross Up and Indemnities.

     (i) Tax Gross Up.

     (a) The Borrower shall make all payments to be made by it without any Tax
Deduction, unless a Tax Deduction is required by law. (b) The Borrower shall promptly upon
becoming aware that it must make a Tax Deduction (or that there is any change in the rate
or the basis of a Tax Deduction) notify the Facility Agent accordingly. Similarly, a Lender
shall notify the Facility Agent on becoming so aware in respect of a payment payable to
that Lender. If the Facility Agent receives such notification from a Lender it shall
notify the Borrower. (c) If a Tax Deduction is required by law to be made by the Borrower,
the amount of the payment due from that Borrower shall be increased to an amount which
(after making any Tax Deduction) leaves an amount equal to the payment which would have
been due if no Tax Deduction had been required. (d) The Borrower is not required to make
an increased payment to a Lender under paragraph (c) above for a Tax Deduction in respect
of tax imposed by France from a payment of interest on a Loan, if on the date on which the
payment falls due: (A) the payment could have been made to the relevant Lender without a
Tax Deduction if it was a Qualifying Lender, but on that date that Lender is not or has
ceased to be a Qualifying Lender other than as a result of any change after the date it
became a Lender under this Agreement in (or in the interpretation, administration, or
application of) any law or double taxation agreement, or any published practice or
concession of any relevant taxing authority; or (B) the relevant Lender is a

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Treaty Lender and the Borrower making the payment is able to demonstrate that the
payment could have been made to the Lender without the Tax Deduction had that Lender
complied with its obligations under paragraph (g) below. (e) If a Borrower is required to
make a Tax Deduction, that Borrower shall make that Tax Deduction and any payment required
in connection with that Tax Deduction within the time allowed and in the minimum amount
required by law. (f) Within thirty days of making either a Tax Deduction or any payment
required in connection with that Tax Deduction, the Borrower making that Tax Deduction
shall deliver to the Facility Agent for the Finance Party entitled to the payment evidence
reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as
applicable) any appropriate payment paid to the relevant taxing authority. (g) A Treaty
Lender and each Obligor which makes a payment to which that Treaty Lender is entitled shall
co-operate in completing any procedural formalities necessary for that Obligor to obtain
authorization to make that payment without a Tax Deduction.

     (ii) Tax Indemnity.

     (a) The Borrower shall (within three Business Days of demand by the
Facility Agent) pay to a Protected Party an amount equal to the loss, liability or cost
which that Protected Party determines will be or has been (directly or indirectly) suffered
for or on account of Tax by that Protected Party in respect of a Finance Document. (b)
Paragraph (a) above shall not apply (A) with respect to any Tax assessed on a Finance
Party: (x) under the law of the jurisdiction in which that Finance Party is incorporated
or, if different, the jurisdiction (or jurisdictions) in which that Finance Party is
treated as resident for tax purposes or (y) under the law of the jurisdiction in which that
Finance Party’s Facility Office is located in respect of amounts received or receivable in
that jurisdiction, if that Tax is imposed on or calculated by reference to the net income
received or receivable (but not any sum deemed to be received or receivable) by that
Finance Party; or (B) to the extent a loss, liability or cost: (x) is compensated for by an
increased payment under Section 2.19(a) (i) (Tax gross up) or (y) would have been
compensated for by an increased payment under Section 2.19(a) (i) (Tax gross up) but was
not so compensated solely because one of the exclusions in paragraph (d) under Section
2.19(a) (i) (Tax gross up) applied. (c) A Protected Party making, or intending to make a
claim under paragraph (a) above shall promptly notify the Facility Agent of the event which
will give, or has given, rise to the claim, following which the Facility Agent shall notify
the Borrower. (d) A Protected Party shall, on receiving a payment from an Obligor under
this Section 2.19, notify the Facility Agent.

     (iii) Tax Credit. If an Obligor makes a Tax Payment and the relevant
Finance Party determines that (a) a Tax Credit is attributable to that Tax Payment and (b)
that Finance Party has obtained, utilized and retained that Tax Credit, the Finance Party
shall pay an amount to the Obligor which that Finance Party determines will leave it (after
that payment) in the same after-Tax position as it would have been in had the Tax Payment
not been made by the Obligor.

     (iv) Stamp taxes. The Borrower shall pay and, within three Business Days of
demand, indemnify each Finance Party against any cost, loss or liability that Finance Party
incurs in relation to all stamp duty, registration and other similar Taxes payable in
respect of any Finance Document.

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     (v) Value added tax. (a) All amounts set out, or expressed to be payable
under a Finance Document by any Party to a Finance Party which (in whole or in part)
constitute the consideration for VAT purposes shall be deemed to be exclusive of any VAT
which is chargeable on such supply, and accordingly, subject to paragraph (c) below, if VAT
is chargeable on any supply made by any Finance Party to any Party under a Finance
Document, that Party shall pay to the Finance Party (in addition to and at the same time as
paying the consideration) an amount equal to the amount of the VAT (and such Finance Party
shall promptly provide an appropriate VAT invoice to such Party). (b) If VAT is chargeable
on any supply made by any Finance Party (the “Supplier”) to any other Finance Party (the
“Recipient”) under a Finance Document, and any Party (the “Relevant Party”) is required by
the terms of any Finance Document to pay an amount equal to the consideration for such
supply to the Supplier (rather than being required to reimburse the Recipient in respect of
that consideration), such Party shall also pay to the Supplier (in addition to and at the
same time as paying such amount) an amount equal to the amount of such VAT. The Recipient
will promptly pay to the Relevant Party an amount equal to any credit or repayment from the
relevant tax authority which it reasonably determines relates to the VAT chargeable on that
supply. (c) Where a Finance Document requires any Party to reimburse a Finance Party for
any costs or expenses, that Party shall also at the same time pay and indemnify the Finance
Party against all VAT incurred by the Finance Party in respect of the costs or expenses to
the extent that the Finance Party reasonably determines that neither it nor any other
member of any group of which it is a member for VAT purposes is entitled to credit or
repayment from the relevant tax authority in respect of the VAT.

     SECTION 2.20. Assignment of Commitments Under Certain Circumstances; Duty to Mitigate

     (a) In the event (i) any Lender delivers a certificate requesting compensation
pursuant to Section 2.13, (ii) any Lender delivers a notice described in Section 2.14, (iii) the
Borrower is required to pay any additional amount to any Lender or any Governmental Authority on
account of any Lender pursuant to Section 2.19, or (iv) any Lender becomes a Defaulting Lender, the
Borrower may, at its sole expense and effort (including with respect to the processing and
recordation fee referred to in Section 9.04(b)), upon notice to such Lender, and the Facility
Agent, require such Lender to transfer and assign, without recourse (in accordance with and subject
to the restrictions contained in Section 9.04), all of its interests, rights and obligations under
this Agreement to an assignee that shall assume such assigned obligations; provided that (x) such
assignment shall not conflict with any law, rule or regulation or order of any court or other
Governmental Authority having jurisdiction, (y) the Borrower shall have received the prior written
consent of the Facility Agent (and, if a Revolving Credit Commitment is being assigned, of the
Swingline Lender), which consents shall not unreasonably be withheld or delayed, and (z) the
Borrower or such assignee shall have paid to the affected Lender in immediately available funds an
amount equal to the sum of the principal of and interest accrued to the date of such payment on the
outstanding Loans of such Lender, plus all Fees and other amounts accrued for the account of such
Lender hereunder with respect thereto (including any amounts under Section 2.13 and Section 2.15);
provided further that, if prior to any such transfer and assignment the circumstances or event that
resulted in such Lender’s claim for compensation under Section 2.13, notice under Section 2.14 or
the amounts paid pursuant to Section 2.19, as the case may be, cease to cause such Lender to suffer
increased costs or reductions in amounts received or receivable or reduction in return on capital,
or cease to have the consequences specified in Section 2.14, or cease to result in amounts being
payable under Section 2.19, as the case may be (including as a result of any action taken by

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such Lender pursuant to paragraph (b) below), or if such Lender shall waive its right to claim
further compensation under Section 2.13 in respect of such circumstances or event or shall withdraw
its notice under Section 2.14 or shall waive its right to further payments under Section 2.19 in
respect of such circumstances or event or shall consent to the proposed amendment, waiver, consent
or other modification, as the case may be, then such Lender shall not thereafter be required to
make any such transfer and assignment hereunder.

     (b) If (i) any Lender shall request compensation under Section 2.13, (ii) any Lender
delivers a notice described in Section 2.13 or (iii) the Borrower is required to pay any additional
amount to any Lender or any Governmental Authority on account of any Lender, pursuant to Section
2.19, then such Lender shall use reasonable efforts (which shall not require such Lender to incur
an unreimbursed loss or unreimbursed cost or expense or otherwise take any action inconsistent with
its internal policies or legal or regulatory restrictions or suffer any disadvantage or burden
deemed by it to be significant) (x) to file any certificate or document reasonably requested in
writing by the Borrower or (y) to assign its rights and delegate and transfer its obligations
hereunder to another of its offices, branches or affiliates, if such filing or assignment would
reduce its claims for compensation under Section 2.13 or enable it to withdraw its notice pursuant
to Section 2.14 or would reduce amounts payable pursuant to Section 2.19, as the case may be, in
the future. The Borrower hereby agrees to pay all reasonable out-of-pocket costs and expenses
incurred by any Lender in connection with any such filing or assignment, delegation and transfer.

     SECTION 2.21. Swingline Loans

     (a) Swingline Commitment. Subject to the terms and conditions and relying upon the
representations and warranties herein set forth, and provided that there may not be more than one
(1) outstanding Swingline Loan at any one time, the Swingline Lenders agree to make loans in euro
to the Borrower at any time and from time to time on and after the Signing Date and until the
earlier of the Revolving Credit Maturity Date and the termination of the Revolving Credit
Commitments, in an aggregate principal amount at any time outstanding that will not result in (i)
the aggregate principal amount of all Swingline Loans exceeding $50,000,000 in the aggregate or
(ii) the Aggregate Revolving Credit Exposure, after giving effect to any Swingline Loan, exceeding
the Total Revolving Credit Commitment. Each Swingline Loan shall be in a principal amount that is
an integral multiple of $1,000,000. The Swingline Commitment may be terminated or reduced from time
to time as provided herein. Within the foregoing limits, the Borrower may borrow, pay or prepay and
reborrow Swingline Loans hereunder, subject to the terms, conditions and limitations set forth
herein.

     (b) Swingline Loans. The Borrower shall notify the Swingline Lenders by fax, or by
telephone (promptly confirmed by fax), not later than 9:30 a.m., Paris time, on the day of a
proposed Swingline Loan. Such notice shall be delivered in the form of a Borrowing Request on a
Business Day, shall be irrevocable and shall refer to this Agreement and shall specify the
requested date (which shall be a Business Day) and amount of such Swingline Loan, the wire transfer
instructions for the account of the Borrower to which the proceeds of such Swingline Loan should be
disbursed and the Interest Period with respect thereto. The Swingline Lenders shall make each
Swingline Loan by wire transfer to the account specified in such request to the Facility Agent.

     (c) Interest. Each Swingline Loan shall bear interest as provided in Section 2.06
(b).

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     (d) Participations. Should a Swingline Loan remain unpaid on or after its relevant
Interest Payment Date, the Swingline Lender may by written notice given to the Facility Agent not
later than 1:00 p.m., Paris time, on any Business Day thereafter require the Revolving Credit
Lenders to acquire participations on such Business Day in all or a portion of the Swingline Loans
outstanding. Such notice shall specify the aggregate amount of Swingline Loans in which such
Revolving Credit Lenders will participate. The Facility Agent will, promptly upon receipt of such
notice, give notice to each such Revolving Credit Lender, specifying in such notice such Lender’s
Pro Rata Percentage of such Swingline Loan or Loans. In furtherance of the foregoing, each
Revolving Credit Lender hereby absolutely and unconditionally agrees, upon receipt of notice as
provided above, to pay to the Facility Agent, for the account of the Swingline Lender, such
Revolving Credit Lender’s Pro Rata Percentage of such Swingline Loan or Loans. Each Revolving
Credit Lender acknowledges and agrees that its obligation to acquire participations in Swingline
Loans pursuant to this paragraph is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including the occurrence and continuance of a Default or an Event of
Default, and that each such payment shall be made without any offset, abatement, withholding or
reduction whatsoever. Each Revolving Credit Lender shall comply with its obligation under this
paragraph by wire transfer of immediately available funds, in the same manner as provided in
Section 2.02(c) with respect to Loans made by such Lender (and Section 2.02(c) shall apply, mutatis
mutandis, to the payment obligations of the Lenders) and the Facility Agent shall promptly pay to
the Swingline Lender the amounts so received by it from the Lenders. The Facility Agent shall
notify the Borrower of any participations in any Swingline Loan acquired pursuant to this paragraph
and thereafter payments in respect of such Swingline Loan shall be made to the Facility Agent and
not to the Swingline Lender. Any amounts received by the Swingline Lender from the Borrower (or
other person on behalf of the Borrower) in respect of a Swingline Loan after receipt by the
Swingline Lender of the proceeds of a sale of participations therein shall be promptly remitted to
the Facility Agent; any such amounts received by the Facility Agent shall be promptly remitted by
the Facility Agent to the Lenders that shall have made their payments pursuant to this paragraph
and to the Swingline Lender, as their interests may appear. The purchase of participations in a
Swingline Loan pursuant to this paragraph shall not relieve the Borrower (or other person liable
for obligations of the Borrower) of any default in the payment thereof.

ARTICLE III

Representations and Warranties

     The Borrower makes for itself and for all its Subsidiaries the representations and warranties
set out in this Article III to each Finance Party:

     SECTION 3.01. Status

     It and each of its Subsidiaries is a limited liability company, general partnership, limited
partnership or corporation (or, as applicable in a jurisdiction outside the United States, an
organization having an equivalent status in such jurisdiction) (except Sea Survey II and Sea Survey
III, each of which is an unlimited liability corporation and Veritas Geophysical (Canada) Corp.,
which is an unlimited liability company), duly formed and validly existing under the law of its
jurisdiction of formation. It and each of its Subsidiaries has the corporate, company, partnership
or organizational power to own its assets and carry on its business as it is being conducted.

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     SECTION 3.02. Binding Obligations

     Subject to the Legal Reservations, (a) the obligations expressed to be assumed by it in each
Finance Document to which it is a party, or under which it is otherwise obligated to perform, are
legal, valid, binding and enforceable obligations, and (b) (without limiting the generality of
clause (a) above), each Security Document to which it is a party, or under which it is otherwise
obligated to perform, creates the security interests which that Security Document purports to
create and those security interests are valid and effective.

     SECTION 3.03. Non-Conflict with Other Obligations

     The entry into and performance by it of, and the transactions contemplated by, the Finance
Documents and the granting of the Security do not and will not conflict with (a) any law or
regulation applicable to it, (b) the constitutional documents of any member of the Group or (c) any
material agreement or material instrument binding upon it or any member of the Group or any of its,
or any member of the Group’s, assets or constitute a default or termination event (however
described) under any such agreement or instrument.

     SECTION 3.04. Power and Authority

     It has the corporate, company, partnership or organizational power to enter into, perform and
deliver, and has taken all necessary action to authorize its entry into, performance and delivery
of, the Finance Documents to which it is or will be a party, or under which it is obligated to
perform, and the transactions contemplated by those Finance Documents. No limit on its corporate,
company, partnership or organizational powers will be exceeded as a result of the borrowing, grant
of security or giving of guarantees or indemnities contemplated by the Finance Documents to which
it is a party.

     SECTION 3.05. Validity and Admissibility in Evidence

     All Authorizations required (a) to enable it lawfully to enter into, exercise its rights and
comply with its obligations under the Finance Documents to which it is a party, or under which it
is obligated to perform, and (b) to make the Finance Documents to which it is a party, or under
which it is obligated to perform, admissible in evidence in its Relevant Jurisdictions other than
any actions specifically referred to in the legal opinions delivered under Section 4.02 and which
are not taken by the Finance Parties (where such actions are actions to be taken voluntarily by the
Finance Parties) have been obtained or effected and are in full force and effect. All
Authorizations necessary for the conduct of the business, trade and ordinary activities of members
of the Group have been obtained or effected and are in full force and effect, except where failure
to do so or to be so could not be reasonably expected to have a Material Adverse Effect.

     SECTION 3.06. Governing Law and Enforcement

     Subject to the Legal Reservations, (a) the choice of law specified in each Finance Document as
the governing law of such Finance Document will be recognized and enforced in its Relevant
Jurisdictions, and (b) any judgment obtained in France (or in the jurisdiction of the governing law
of such Finance Document) in relation to a Finance Document will be recognized and enforced in its
Relevant Jurisdictions.

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     SECTION 3.07. Solvency

     (a) Solvency. Immediately after the consummation of the Transactions to occur on
the Signing Date and immediately following the making of each Loan and after giving effect to the
application of the proceeds of each Loan, the Borrower is Solvent (“Solvent” meaning that (i) the
fair value of the assets of the Borrower will exceed its then-existing debts and liabilities,
subordinated, contingent or otherwise; (ii) the present fair saleable value of the property of the
Borrower is not less than the amount that will be required to pay the probable liability of its
then-existing debts and other liabilities, subordinated, contingent or otherwise, as such debts and
other liabilities become absolute and matured; (iii) the Borrower reasonably believes that it will
be able to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured (considering all financing alternatives and potential asset
sales reasonably available to the Borrower); and (iv) the Borrower will not have unreasonably small
capital with which to conduct the business in which it is engaged as such business is now conducted
and is proposed to be conducted following the Signing Date).

     (b) No (i) corporate action, legal proceeding or other procedure or step described
in paragraph (g) or (h) of Article VII, or (ii) creditors’ process described in paragraph (g) or
(h) of Article VII has been taken or, to the knowledge of the Borrower, threatened in relation to a
member of the Group, and none of the circumstances described in paragraph (g) or (h) of Article VII
applies to a member of the Group.

     SECTION 3.08. No Filing or Stamp Taxes

     Under the laws of its Relevant Jurisdiction, it is not necessary that the Finance Documents be
filed, recorded or enrolled with any court or other authority in that jurisdiction or that any
stamp, registration, notarial or similar Taxes or fees be paid on or in relation to the Finance
Documents or the transactions contemplated by the Finance Documents other than any actions
specifically referred to in the legal opinions delivered under Section 4.02 (Conditions Precedent
to Signing) and which are not taken by the Finance Parties (where such actions are actions to be
taken voluntarily by the Finance Parties).

     SECTION 3.09. No Default

     (a) No Event of Default and, on the date of this Agreement and the Signing Date, no
Default is continuing or would result from the making of the Loan or the entry into, the
performance of, or any transaction contemplated by, any Finance Document.

     (b) No other event or circumstance is outstanding which constitutes (or, with the
expiry of a grace period, the giving of notice, the making of any determination or any combination
of any of the foregoing, would constitute) a default or termination event (however described) under
any other agreement or instrument which is binding on it, or to which its (or any of its
Subsidiaries’) assets are subject, which has or is reasonably likely to have a Material Adverse
Effect.

     SECTION 3.10. Investment Company Act

     None of the Borrower or any Subsidiary is an “investment company” as defined in, or subject to
regulation under, the Investment Company Act of 1940.

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     SECTION 3.11. ERISA

     Each U.S. Group Member and its ERISA Affiliates are in compliance in all material respects
with the applicable provisions of ERISA and the Code and the regulations and published
interpretations thereunder. No ERISA Event has occurred or is reasonably expected to occur that,
when taken together with all other such ERISA Events, could reasonably be expected to result in
material liability of any U.S. Group Member or any of its ERISA Affiliates. The present value of
all benefit liabilities under each Plan (based on the assumptions used for purposes of Statement of
Financial Accounting Standards No. 87) did not, as of the last annual valuation date applicable
thereto, exceed the fair market value of the assets of such Plan by an amount in excess of
$5,000,000, and the present value of all benefit liabilities of all underfunded Plans (based on the
assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of
the last annual valuation dates applicable thereto, exceed the fair market value of the assets of
all such underfunded Plans by an amount in excess of $5,000,000.

     SECTION 3.12. Use of Proceeds

     The Borrower will use the proceeds of the Loans only for the purposes specified in the
introductory statement to this Agreement.

     SECTION 3.13. No Misleading Information

     (a) Any factual information, provided by or on behalf of any member of the Group, or
by or on behalf of CGG Veritas Services Inc. and its Subsidiaries prior to the Signing Date, to any
of the Finance Parties was true and accurate in all material respects (in the case of CGG Veritas
Services Inc. or its Subsidiaries, to the Borrower’s knowledge) as at the date of the relevant
report or document containing the information or (as the case may be) as at the date the
information is expressed to be given.

     (b) No event or circumstance has occurred or arisen, no information has been omitted
from the information provided by or on behalf of any member of the Group, or by or on behalf of CGG
Veritas Services Inc. and its Subsidiaries prior to the Signing Date, and no information has been
given or withheld that results in the information, opinions, intentions, forecasts or projections
contained in such information provided being untrue or misleading in any material respect (in the
case of CGG Veritas Services Inc. or its Subsidiaries, to the Borrower’s knowledge).

     (c) All material information provided by or on behalf of any member of the Group, or
by or on behalf of CGG Veritas Services Inc. and its Subsidiaries, to a Finance Party in connection
with the Merger on or before the date of this Agreement and not superseded before that date is
accurate and not misleading in any material respect (in the case of CGG Veritas Services Inc. or
its Subsidiaries, to the Borrower’s knowledge), and all projections prepared by or on behalf of any
member of the Group, or by or on behalf of CGG Veritas Services Inc. and its Subsidiaries, which
are provided to any Finance Party on or before the date of this Agreement have been prepared in
good faith on the basis of assumptions which were reasonable at the time at which they were
prepared and supplied (in the case of CGG Veritas Services Inc. or its Subsidiaries, to the
Borrower’s knowledge).

     (d) All other written information provided by or on behalf of any member of the
Group, or by or on behalf of CGG Veritas Services Inc. and its Subsidiaries prior to the Signing
Date, including its advisers, to a Finance Party was true, complete and accurate in all material
respects

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(in the case of CGG Veritas Services Inc. or its Subsidiaries, to the Borrower’s knowledge) as
at the date it was provided and is not misleading in any respect (in the case of CGG Veritas
Services Inc. or its Subsidiaries, to the Borrower’s knowledge).

     SECTION 3.14. Original Financial Statements

     (a) The Borrower’s Original Financial Statements were prepared in accordance with
IFRS or French GAAP, as applicable, consistently applied.

     (b) The Borrower’s Original Financial Statements fairly present its financial
condition and results of operations for the relevant Fiscal Year.

     (c) There has been no Material Adverse Effect since the date of the Borrower’s
Original Financial Statements for the Fiscal Year ended December 31, 2005.

     (d) The Original Financial Statements of the Borrower do not consolidate the
results, assets or liabilities of any person or business which does not form part of the Group.

     (e) The Borrower’s most recent financial statements delivered pursuant to Section
5.01 (i) have been prepared in accordance with IFRS, and (ii) fairly present the Borrower’s
consolidated or unconsolidated as the case may be financial condition as at the end of, and
consolidated or unconsolidated as the case may be results of operations for, the period to which
they relate.

     (f) As at each Quarter Date, there has been no Material Adverse Effect since the
date of the immediately preceding Quarter Date.

     (g) The budgets and forecasts supplied under this Agreement or any Finance Document
have been prepared in good faith on the basis of recent historical information and on the basis of
assumptions which were reasonable as at the date they were prepared and supplied.

     SECTION 3.15. No Proceedings Pending or Threatened

     No litigation, arbitration or administrative proceedings or investigations of, or before, any
court, arbitral body or agency which, if adversely determined, are reasonably likely to have a
Material Adverse Effect have (to the best of its knowledge and belief (having made due and careful
inquiry)) been started or threatened against it or any of its Subsidiaries.

     SECTION 3.16. No Breach of Laws

     (a) It has not (and none of its Subsidiaries has) breached any law or regulation
which breach has or is reasonably likely to have a Material Adverse Effect.

     (b) No labor disputes are current or, to the best of its knowledge and belief
(having made due and careful inquiry), threatened against any member of the Group which have or are
reasonably likely to have a Material Adverse Effect.

     SECTION 3.17. Environmental Laws

     (a) Each member of the Group is in compliance with Section 5.10 and, to the best of
its knowledge and belief (having made due and careful inquiry), no circumstances have occurred

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which would prevent such compliance in a manner or to an extent which has or is reasonably likely
to have a Material Adverse Effect.

     (b) No Environmental Claim has been commenced or (to the best of its knowledge and
belief (having made due and careful inquiry)) is threatened against any member of the Group where
that claim has or is reasonably likely, if determined against that member of the Group, to have a
Material Adverse Effect.

     SECTION 3.18. Taxation

     (a) It is not (and none of its Subsidiaries is) materially overdue in the filing of
any Tax returns and it is not (and none of its Subsidiaries is) overdue in the payment of any
amount in respect of Tax of $10,000,000 (or its equivalent in any other currency) or more.

     (b) No claims or investigations are being made or conducted against it (or any of
its Subsidiaries) with respect to Taxes such that a liability of, or claim against, any member of
the Group of $10,000,000 (or its equivalent in any other currency) or more is reasonably likely to
arise.

     SECTION 3.19. Security and Financial Indebtedness

     (a) No Security or Quasi-Security exists over all or any of the present or future
assets of any member of the Group other than as permitted by this Agreement.

     (b) No member of the Group has any Financial Indebtedness outstanding other than as
permitted by this Agreement.

     SECTION 3.20. Ranking

     (a) Subject to the terms of the Intercreditor Agreement, its payment obligations
under the Finance Documents to which it is a party rank at least pari passu in right of payment
with all of its other present and future senior indebtedness, except for indebtedness mandatorily
preferred by laws of general application to companies.

     (b) Subject to the terms of the Intercreditor Agreement, the Transaction Security
has or will have first ranking priority and it is not subject to any prior ranking or pari passu
ranking Security except Permitted Security (excluding any Permitted Security referred to in clauses
(b) (to the extent securing subordinated indebtedness), (j) (to the extent specified in the
applicable consent) or (l) of the definition thereof).

     SECTION 3.21. Good Title to Assets

     It and each of its Subsidiaries has a good, valid and marketable title to, or valid leases or
licenses of, and all appropriate Authorizations to use, the assets necessary to carry on its
business as presently conducted, except where failure to do so could not be reasonably expected to
have a Material Adverse Effect.

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     SECTION 3.22. Sanctioned Persons

     None of the Borrower or any Subsidiary nor, to the knowledge of the Borrower, any director,
officer, agent, employee or Affiliate of the Borrower or any Subsidiary is currently subject to any
U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department
(“OFAC”); and the Borrower will not directly or indirectly use the proceeds of the Loans or
otherwise make available such proceeds to any person, for the purpose of financing the activities
of any person currently subject to any U.S. sanctions administered by OFAC.

     SECTION 3.23. Legal and Beneficial Ownership

     (a) It and each of its Subsidiaries is the sole legal and beneficial owner of the
respective assets over which it purports to grant Security.

     (b) All the Shares acquired prior to the date of this Agreement are, and those
acquired after the date of this Agreement will be, legally and beneficially owned by the Borrower,
CGG Veritas Services Inc. or the applicable Subsidiary free from any claims, third party rights or
competing interests (other than any claims, third party rights or competing interests contained in
the constitutional documents or contractual arrangements of the issuer of such Shares at the time
such Shares became subject to the Transaction Security).

     SECTION 3.24. Shares

     The Shares of any member of the Group which are subject to the Transaction Security on the
Signing Date are fully paid and not subject to any option to purchase or similar rights. The
constitutional documents of companies whose Shares are subject to the Transaction Security on the
Signing Date do not and could not restrict or inhibit any transfer of those Shares on creation or
enforcement of the Transaction Security other than as set forth on Schedule 3.26 of the U.S. First
Lien Credit Agreement.

     SECTION 3.25. Intellectual Property

     It and each of its Subsidiaries (a) is the sole legal and beneficial owner of, or has licensed
to it on normal commercial terms, all the Intellectual Property that is material in the context of
its business and that is required by it in order to carry on its business as it is being presently
conducted, (b) does not (nor does any of its Subsidiaries), in carrying on its businesses, infringe
any Intellectual Property of any third party in any respect which would be reasonably likely to
have a Material Adverse Effect, and (c) has taken all formal or procedural actions (including
payment of fees) required to maintain any material Intellectual Property owned by it.

     SECTION 3.26. Accounting Reference Date

     The Accounting Reference Date of each Obligor and Material Subsidiary is December 31.

     SECTION 3.27. Centre of Main Interests and Establishments

     For the purposes of The Council of the European Union Regulation No. 1346/2000 on Insolvency
Proceedings (the “Regulation”), the centre of main interest (as that term is used in Article 3(1)
of the Regulation) of the Borrower and each Non U.S. Subsidiary is situated in such

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entity’s jurisdiction of incorporation and it has no “establishment” (as that term is used in
Article 2(h) of the Regulations) in any other jurisdiction.

ARTICLE IV

Conditions of Lending

     The obligations of the Lenders to make Loans hereunder are subject to the satisfaction of the
following conditions:

     SECTION 4.01. All Credit Events

     On the date of each Borrowing (other than a conversion or a continuation of a Borrowing),
including each Borrowing of a Swingline Loan (each such event being called a “Credit Event”):

     (a) The Facility Agent shall have received a notice of such Borrowing as required by
Section 2.03 for any Borrowing that is not a Swingline Loan (or such notice shall have been deemed
given in accordance with Section 2.02) or, in the case of the Borrowing of a Swingline Loan, the
Swingline Lenders and the Facility Agent shall have received a notice requesting such Swingline
Loan as required by Section 2.21(b).

     (b) The representations and warranties set forth in Article III and in each other
Finance Document shall be true and correct in all material respects on and as of the date of such
Credit Event with the same effect as though made on and as of such date, except to the extent such
representations and warranties expressly relate to an earlier date.

     (c) At the time of and immediately after such Credit Event, no Default or (in the
case of a Rollover Loan) Event of Default shall have occurred and be continuing.

     Each Credit Event shall be deemed to constitute a representation and warranty by the Borrower
on the date of such Credit Event as to the matters specified in paragraphs (b) and (c) of this
Section 4.01.

     SECTION 4.02. Conditions Precedent to Signing

     On the Signing Date, the Facility Agent shall have received in form and substance satisfactory
to it:

     (a) on behalf of itself and the Lenders, an original or certified copy of a
favorable written opinion of:

     (i) Linklaters, New York, legal advisors of the Borrower, in the agreed
form;

     (ii) Linklaters, Paris, legal advisors of the Borrower in the agreed form;

     (iii) Linklaters, London, legal advisors of the Borrower in the agreed form;

     (iv) Clifford Chance, Paris, legal advisors of the Facility Agent in the
agreed form;

     (v) Bredin Prat, Paris, legal advisors of the Collateral Agent in the agreed
form;

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     (vi) AK, Texas, legal advisors of the Borrower in the agreed form;

     (vii) Osler, Canada, legal advisors of CGG Canada Services Ltd. in the
agreed form;

     (viii) McInnes, Canada, legal advisors of Sercel Canada Inc. in the agreed
form;

     (ix) BAHR, Oslo, legal advisors of the Borrower, CGG Americas Inc. and CGG
Marine Resources Norge AS in the agreed form;

     (x) Gable, Oklahoma, legal advisors of Sercel Inc. in the agreed form; and

     (xi) Mallesons, New South Wales, legal advisors of the Borrower in the
agreed form;

     (b) an original or certified copy of a K-bis extract (or a similar document for any
Obligor incorporated in a country other than France) no more than 15 days old of each Original
Obligor;

     (c) an original or certified copy of the constitutive documents (statuts) (or a
similar document for any Obligor incorporated in a country other than France) of each Original
Obligor, including all amendments thereto;

     (d) evidence that the person(s) who has (have) signed the Finance Documents on
behalf of the Original Obligor was (were) duly authorized so to sign (including, but not limited
to, a copy certified as a true copy by an Authorised Signatory, of any power of attorney or
corporate decision necessary to provide such person with such authority), deliver and perform the
Finance Documents to which such person is a party and, in the case of the Borrower, the borrowings
hereunder;

     (e) an original or certified copy of a certificate signed by a duly authorized
representative (or the reasonable equivalent thereof) (A) setting out the name and a specimen of
the signature of each person authorized to sign, on behalf of the Original Obligor, the Finance
Documents to which it is a party and each other document to be delivered by the Original Obligor
pursuant thereto (including, but not limited to, any Compliance Certificate or any Borrowing
Request provided by the Borrower) and (B) certifying that each copy document (including documents
referred to in paragraphs (b) to (e)) is correct, complete and in full force and effect as at a
date no earlier than the date of this Agreement;

     (f) an original or certified copy of the TEG Letter signed by it and the Borrower;

     (g) confirmation by Lead Arrangers to the Facility Agent that their “know your
customers” requirements have been complied with;

     (h) an original or copy certified by an authorized signatory of the relevant company
to be a true copy, of the Original Financial Statements;

     (i) an original or certified copy of a certificate, dated the Signing Date and
signed by a Financial Officer the Borrower, confirming that the representations and warranties set
fourth in Article III are true and correct in all material respects on the Signing Date;

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     (j) all Fees and other amounts due and payable on the Signing Date, including, to
the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be
reimbursed or paid by the Borrower hereunder or under any other Finance Document;

     (k) an original or certified copies of each of the Initial Security Documents, other
than those referred to in paragraph (m) below, duly executed by each Obligor that is to be a party
thereto and which shall be in full force and effect on or before the date of the drawdown of the
first Loan. The Collateral Agent on behalf of the Secured Parties shall have a security interest
in the Collateral of the type and priority described in each Security Document.

     (l) except to the extent not required to be executed on or prior to the Signing Date
pursuant to the terms hereof or of any executed Security Document, an original or certified
copy of a Perfection Certificate with respect to the relevant Original Obligors dated the Signing
Date and duly executed by a Responsible Officer of the Borrower, and shall have received the
results of a search of the Uniform Commercial Code filings (or equivalent filings, to the extent
available in the relevant jurisdictions) made with respect to the Obligors in the states (or other
jurisdictions) of formation of such persons (and, with respect to non-US Obligors, the District of
Columbia), in which the chief executive office of each such person is located and in the other
jurisdictions in which such persons maintain property, in each case as indicated on Schedule
4.02(g) of the U.S. First Lien Credit Agreement, together with copies of the financing statements
(or similar documents) disclosed by such search, and accompanied by evidence satisfactory to the
Collateral Agent that the Security indicated in any such financing statement (or similar document)
constitutes Permitted Security or have been or will be contemporaneously released or terminated.

     (m) except to the extent not required to be executed on or prior to the Signing Date
pursuant to the terms hereof or of any executed Security Document (i) an original or
certified copy of each of the Security Documents, in form and substance satisfactory to the
Lenders, relating to each of the Mortgaged Properties shall have been duly executed by the parties
thereto and delivered to the Collateral Agent and shall be in full force and effect, (ii) each of
such Mortgaged Properties shall not be subject to any Security other than those permitted under
Section 6.07, (iii) each of such Security Documents shall have been submitted for filing and
recordation in the recording office as specified on Schedule 4.02(h) of the U.S. First Lien Credit
Agreement (or a lender’s title insurance policy, in form and substance acceptable to the Collateral
Agent, insuring such Security Document as a first lien on such Mortgaged Property (subject to any
Permitted Security) shall have been received by the Collateral Agent) and, in connection therewith,
the Collateral Agent shall have received evidence satisfactory to it of each such submission and
(iv) the Collateral Agent shall have received such other documents, including a policy or policies
of title insurance issued by a nationally recognized title insurance company, together with such
endorsements, coinsurance and reinsurance as may be reasonably requested by the Collateral Agent
and the Lenders, insuring the Mortgages as valid first liens on the Mortgaged Properties, free of
Security other than any Permitted Security, together with such surveys, abstracts, appraisals and
legal opinions required to be furnished pursuant to the terms of the Mortgages or as reasonably
requested by the Collateral Agent or the Lenders.

ARTICLE V

Affirmative Covenants

     The Borrower covenants and agrees with each Lender that so long as this Agreement shall remain
in effect and until the Commitments have been terminated and the principal of and interest

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on each Loan, all Fees and all other expenses or amounts payable under any Finance Document
shall have been paid in full and all amounts drawn thereunder have been reimbursed in full, unless
the Majority Lenders shall otherwise consent in writing:

     SECTION 5.01. Financial Statements

     The Borrower shall supply (in sufficient copies for all the Lenders, if the Facility Agent so
requests) to the Facility Agent (and the Facility Agent shall promptly distribute to the Lenders):

     (a) as soon as they are available, but in any event within six months after the end
of each of its Fiscal Years, its audited consolidated financial statements for that Fiscal Year;

     (b) within 60 days after the end of each of the first and third quarter of each
Fiscal Year (and within 75 days after the end of the second quarter of each Fiscal Year), its
unaudited consolidated financial statements for that Financial Quarter;

     (c) within 90 days after the beginning of each of its Fiscal Years, a consolidated
budget for such Fiscal Year (including a projected consolidated balance sheet and related
statements of projected operations and cash flows as of the end of and for such Fiscal Year and
setting forth the assumptions used for purposes of preparing such budget).

     SECTION 5.02. Provision and Contents of Compliance Certificate

     (a) The Borrower shall supply a Compliance Certificate to the Facility Agent
quarterly with each set of its Financial Statements delivered under Section 5.01 above.

     (b) The Compliance Certificate shall, among other things, (i) certify that no Event
of Default or Default has occurred or, if such an Event of Default or Default has occurred, specify
the nature and extent thereof and any corrective action taken or proposed to be taken with respect
thereto and (ii) set out (in reasonable detail) computations as to (x) compliance with Section 6.02
and (y) the Available Amount as of the end of the fiscal period then ended and any uses of the
Available Amount during such period (or, in the event that any Permitted Acquisition, Permitted
Loan, Permitted Investment or Restricted Payment for which the Available Amount could have been
used but for the existence of a basket has occurred during such period, the usage and remaining
amount of such basket).

     (c) Each Compliance Certificate shall be signed by two authorized officers of the
Borrower and, if required to be delivered with the consolidated Annual Financial Statements of the
Borrower, shall be reported on by the Borrower’s Auditors in a form acceptable to the Auditors and
reasonably acceptable to the Facility Agent.

     SECTION 5.03. Requirements as to Financial Statements

     (a) The Borrower shall ensure that each set of Annual Financial Statements and
Quarterly Financial Statements includes a balance sheet, profit and loss account and cashflow
statement. In addition, the Borrower shall ensure that each set of Annual Financial Statements
shall be audited by the Auditors.

     (b) Each set of financial statements delivered pursuant to Section 5.01 (i) shall be
certified by an authorized officer of the relevant company as presenting fairly, in accordance with

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applicable accounting standards, its financial condition and operations as at the date as at
which those financial statements were prepared; (ii) in the case of consolidated financial
statements (annual and quarterly) of the Group, shall be accompanied by a statement by the
management of the Borrower; comparing actual performance for the period to which the financial
statements relate to the actual performance for the corresponding period in the preceding Fiscal
Year of the Group; and (iii) in the case of the Borrower, shall be prepared in accordance with IFRS
and accounting practices applied in the preparation of the Base Case Model, unless, in relation to
any set of financial statements, the Borrower notifies the Facility Agent that there has been a
change in IFRS or the accounting practices and its Auditors deliver to the Facility Agent (x) a
description of any change necessary for those financial statements to reflect IFRS or accounting
practices upon which the Base Case Model was prepared; and (y) sufficient information, in form and
substance as may be reasonably required by the Facility Agent, to enable the Lenders to determine
whether Section 6.02 has been complied with and to make an accurate comparison between the
financial position indicated in those financial statements and the Base Case Model. Any reference
in this Agreement to any financial statements shall be construed as a reference to those financial
statements as adjusted to reflect the basis upon which the Base Case Model was prepared.

     (c) If the Facility Agent wishes to discuss the financial position of any member of
the Group with the Auditors, the Facility Agent may notify the Borrower, stating the questions or
issues which the Facility Agent wishes to discuss with the Auditors. In this event, the Borrower
must authorize the Auditors (at the reasonable expense of the Borrower) (i) to discuss the
financial position of each member of the Group with the Facility Agent on request from the Facility
Agent; and (ii) to disclose to the Facility Agent for the Finance Parties any information which the
Facility Agent may reasonably request.

     SECTION 5.04. Presentations

     Once in every Fiscal Year, or more frequently if requested to do so by the Facility Agent if
the Facility Agent reasonably suspects a Default is continuing or may have occurred or may occur a
reasonably short amount of time after making such request, at least two authorized officers of the
Borrower (one of whom shall be the Chief Financial Officer or Deputy Chief Financial Officer of the
Borrower) must give a presentation to the Finance Parties about (a) the on-going business and
financial performance of the Group; and (b) any other matter which a Finance Party may reasonably
request relating to any such suspected Default.

     SECTION 5.05. Information; Miscellaneous

     The Borrower shall supply (in sufficient copies for all the Lenders, if the Facility Agent so
requests) to the Facility Agent (and the Facility Agent shall promptly distribute to the Lenders)
(a) at the same time as they are dispatched, copies of all documents dispatched by the Borrower to
its shareholders generally (or any class of them) or dispatched by the Borrower or any Obligor to
its creditors generally (or any class of them); (b) promptly upon becoming aware of them, the
details of any litigation, arbitration or administrative proceedings which are current, threatened
in writing or pending against any member of the Group, and which, if adversely determined, are
reasonably likely to have a Material Adverse Effect; and (c) promptly on request, such further
information regarding the financial condition, assets and operations of the Group and/or any member
of the Group (including any requested amplification or explanation of any item in the financial
statements, budgets or other material provided by any Obligor under this Agreement or any Finance
Document, any changes to senior management of the Borrower and an up to date copy of its
shareholders’ register (or equivalent in its jurisdiction of incorporation), to the extent such

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document exists), as any Finance Party through the Facility Agent may reasonably request;
provided that the Borrower shall not be obliged to supply to the Facility Agent (or to any Lender)
copies of any Auditors’ letter or other communications to the board of directors or management of
the Group.

     SECTION 5.06. Notification of Default

     (a) Each Obligor shall notify the Facility Agent of any Default (and the steps, if
any, being taken to remedy it) promptly upon becoming aware of its occurrence (unless that Obligor
is aware that a notification has already been provided by another Obligor).

     (b) Promptly upon a request by the Facility Agent, the Borrower shall supply to the
Facility Agent a certificate signed by two of its senior officers on its behalf certifying that no
Default is continuing (or if a Default is continuing, specifying the Default and the steps, if any,
being taken to remedy it).

     SECTION 5.07. “Know Your Customer” Checks

     (a) If (i) the introduction of, or any change in (or in the interpretation,
administration or application of), any law or regulation made after the date of this Agreement;
(ii) any change in the status of an Obligor or the composition of the shareholders of an Obligor
after the date of this Agreement; or (iii) a proposed assignment or transfer by a Lender of any of
its rights and/or obligations under this Agreement to a party that is not a Lender prior to such
assignment or transfer, obliges the Facility Agent or any Lender (or, in the case of clause (iii)
above, any prospective new Lender) to comply with “know your customer” or similar identification
procedures in circumstances where the necessary information is not already available to it, each
Obligor shall promptly upon the request of the Facility Agent or any Lender supply, or ensure the
supply of, such documentation and other evidence as is reasonably requested by the Facility Agent
(for itself or on behalf of any Lender) or any Lender (for itself or, in the case of the event
described in clause (iii) above, on behalf of any prospective new Lender) in order for the Facility
Agent, such Lender or, in the case of the event described in clause (iii) above, any prospective
new Lender, to carry out and be satisfied with the results of all necessary “know your customer” or
other similar checks under all applicable laws and regulations pursuant to the transactions
contemplated in the Finance Documents.

     (b) Each Lender shall promptly upon the request of the Facility Agent supply, or
ensure the supply of, such documentation and other evidence as is reasonably requested by the
Facility Agent (for itself) in order for the Facility Agent to carry out and be satisfied with the
results of all necessary “know your customer” or other similar checks under all applicable laws and
regulations, pursuant to the transactions contemplated in the Finance Documents.

     SECTION 5.08. Authorizations

     Each Obligor shall promptly (a) obtain, comply with and do all that is necessary to maintain
in full force and effect; and (b) supply certified copies to the Facility Agent of, any
Authorization required under any law or regulation of a Relevant Jurisdiction to (i) enable it to
perform its obligations under the Finance Documents; (ii) ensure the legality, validity,
enforceability or admissibility in evidence of any Finance Document; and (iii) carry on its
business where failure to do so has or is reasonably likely to have a Material Adverse Effect.

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     SECTION 5.09. Compliance with Laws

     Each Obligor shall (and the Borrower shall ensure that each member of the Group will) comply
in all respects with all laws to which it may be subject, if failure to so comply has or is
reasonably likely to have a Material Adverse Effect.

     SECTION 5.10. Environmental Compliance

     Each Obligor shall (and the Borrower shall ensure that each member of the Group will) (a)
comply with all Environmental Law; (b) obtain, maintain and ensure compliance with all requisite
Environmental Permits; and (c) implement procedures to monitor compliance with and to prevent
liability under any Environmental Law, in each case, where failure to do so has or is reasonably
likely to have a Material Adverse Effect.

     SECTION 5.11. Environmental Claims

     Each Obligor shall (through the Borrower), promptly upon becoming aware of the same, inform
the Facility Agent in writing of (a) any Environmental Claim against any member of the Group which
is current, pending or threatened; and (b) any facts or circumstances which are reasonably likely
to result in any Environmental Claim being commenced or threatened against any member of the Group,
in each case, where such claim, if determined against such member of the Group, has or is
reasonably likely to have a Material Adverse Effect.

     SECTION 5.12. Taxation

     Each Obligor shall (and the Borrower shall ensure that each member of the Group will) pay and
discharge all material Taxes imposed upon it or its assets within the time period allowed without
incurring penalties, unless (and only to the extent that) (a) such payment is being contested in
good faith; (b) adequate reserves are being maintained for those Taxes and the costs required to
contest them which have been disclosed in its latest financial statements delivered to the Facility
Agent under Section 5.01; and (c) such payment can be lawfully withheld.

     SECTION 5.13. Preservation of Assets

     Each Obligor shall (and the Borrower shall ensure that each member of the Group will) maintain
in good working order and condition (ordinary wear and tear excepted) all of its assets necessary
in the conduct of its business.

     SECTION 5.14. Pari Passu Ranking

     (a) Subject to the terms of the Intercreditor Agreement, each Obligor shall ensure
that at all times, any payment obligations owing to a Finance Party under the Finance Documents
rank at least pari passu in right of payment with the claims of all its other present and future
senior indebtedness, except for indebtedness mandatorily preferred by laws of general application
to companies.

     (b) Subject to the terms of the Intercreditor Agreement, each Obligor shall ensure
that at all times the Transaction Security has or will have first ranking priority and it is not
subject to any prior ranking or pari passu ranking Security except Permitted Security (excluding
any Permitted

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Security referred to in clauses (c) (to the extent securing subordinated indebtedness), (k)
(to the extent specified in the applicable consent) or (m) of the definition thereof).

     SECTION 5.15. Insurance

     (a) Each Obligor shall (and the Borrower shall ensure that each member of the Group
will) maintain insurance on, and in relation to, its business and assets against those risks and to
the extent customary for companies carrying on the same or substantially similar business.

     (b) All insurance must be with reputable independent insurance companies or
underwriters.

     SECTION 5.16. Pensions

     (a) The Borrower shall ensure that all pension schemes operated by or maintained for
the benefit of members of the Group and/or any of its employees are fully funded in accordance with
the governing provisions of the scheme and as may be required by applicable laws with any shortfall
advised by actuaries of recognized standing being rectified in accordance with those governing
provisions and that no action or omission is taken by any member of the Group in relation to such a
pension scheme which has or is reasonably likely to have a Material Adverse Effect.

     (b) The Borrower shall promptly notify the Facility Agent of any material change in
the rate of contributions to any pension schemes mentioned in (a) above paid or recommended to be
paid (whether by the scheme actuary or otherwise) or required (by law or otherwise).

     (c) Each U.S. Group Member and its ERISA Affiliates shall comply in all material
respects with the applicable provisions of ERISA and the Code and shall furnish to the Facility
Agent as soon as possible after, and in any event within ten days after, any Responsible Officer of
any U.S. Group Member or any ERISA Affiliate knows or has reason to know that, any ERISA Event has
occurred that, alone or together with any other ERISA Event, could reasonably be expected to result
in liability of any U.S. Group Member or any ERISA Affiliate in an aggregate amount exceeding
$5,000,000, a statement of a Financial Officer of CGG Veritas Services Inc. or the Borrower setting
forth details as to such ERISA Event and the action, if any, that CGG Veritas Services Inc. or the
Borrower proposes to take with respect thereto.

     SECTION 5.17. Access

     Each Obligor shall (and the Borrower shall ensure that each member of the Group will) (not
more than once in every Fiscal Year unless the Facility Agent reasonably suspects a Default is
continuing or may occur a reasonably short amount of time thereafter) permit the Facility Agent
and/or the Collateral Agent and/or accountants or other professional advisers and contractors of
the Facility Agent or Collateral Agent to have free access, at all reasonable times and on
reasonable notice, at the risk and cost of the Obligor or Borrower to (a) the premises, assets,
books, accounts and records of each member of the Group and (b) meet and discuss matters with its
senior management.

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     SECTION 5.18. Intellectual Property

     Each Obligor shall (and the Borrower shall ensure that each Group member will) (a) preserve
and maintain the subsistence and validity of the Intellectual Property necessary for the business
of the relevant Group member; (b) use reasonable efforts to prevent any infringement in any
material respect of the Intellectual Property; (c) make registrations and pay all registration fees
and taxes to the extent that the Borrower determines in its reasonable commercial judgment that
such registration is necessary to maintain the Intellectual Property in full force and effect and
record its interest in that Intellectual Property; and (d) not use or permit the Intellectual
Property to be used in a way or take any step or omit to take any step in respect of that
Intellectual Property that may materially and adversely affect the existence or value of the
Intellectual Property or imperil the right of any member of the Group to use such property.

     SECTION 5.19. Financial Assistance

     To the extent applicable, each Obligor shall (and the Borrower shall ensure that each member
of the Group will) comply in all respects with Sections 151 to 158 of the United Kingdom Companies
Act 1985 and any equivalent legislation in other jurisdictions including in relation to the
execution of the Security Documents and payment of amounts due under this Agreement.

     SECTION 5.20. Further Assurance

     (a) Each Obligor shall (and the Borrower shall ensure that each member of the Group
will) promptly do all such acts or execute all such documents (including assignments, transfers,
mortgages, charges, notices and instructions) as the Collateral Agent may reasonably specify (and
in such form as the Collateral Agent may reasonably require in favor of the Collateral Agent or its
nominee(s)) (i) to perfect the Security created or intended to be created under or evidenced by the
Security Documents (which may include the execution of a mortgage, charge, assignment or other
Security over all or any of the assets which are, or are intended to be, the subject of the
Transaction Security) or for the exercise of any rights, powers and remedies of the Collateral
Agent or the Finance Parties provided by or pursuant to the Finance Documents or by law; (ii) to
confer on the Collateral Agent or the Finance Parties Security over any property and assets of such
Obligor located in any jurisdiction equivalent or similar to the Security intended to be conferred
by or pursuant to the Security Documents; and/or (iii) to facilitate the realization of the assets
which are, or are intended to be, the subject of the Transaction Security (it being understood that
it is the intent of the parties that the Obligations shall be secured by (x) substantially all the
personal property of the Borrower and the other Obligors that are U.S. Subsidiaries and (y) certain
other assets of the Obligors reasonably agreed between the Collateral Agent and the Borrower, in
each case including real property, mineral interests, vessels and equipment acquired subsequent to
the Signing Date with a fair market value in each instance in excess of $1,000,000, except to the
extent that (A) Transaction Security would not be permitted by the terms of any Permitted Security
existing over such assets or (B) the cost of obtaining Transaction Security would be
disproportionate to the benefit thereof).

     (b) Each Obligor shall (and the Borrower shall ensure that each member of the Group
will) take all such action as is available to it (including making all filings and registrations)
as may be necessary for the purpose of the creation, perfection, protection or maintenance of any
Security conferred or intended to be conferred on the Collateral Agent or the Finance Parties by or
pursuant to the Finance Documents.

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     (c) Each Obligor shall (and the Borrower shall ensure that each member of the Group
will) ensure that at any time that Security is granted to the lenders under the Bridge Facility
pursuant to the Bridge Facility Agreement or the Bridge Facility Security Documents, or to the
lenders under the U.S. First Lien Facilities pursuant to the U.S. First Lien Credit Agreement or
the U.S. Security Documents, such Security shall be granted to the Lenders pursuant to
substantially similar documentation, agreements or arrangements as the Security granted under the
Bridge Facility Security Documents or the U.S. First Lien Security Documents, as applicable, and on
terms consistent with the Intercreditor Agreement.

     (d) The Borrower will cause (i) any subsequently acquired, organized or reorganized
wholly owned U.S Subsidiary and (ii) any subsequently acquired, organized or reorganized Non U.S.
Subsidiary that is (x) a Material Subsidiary, (y) able to provide a full and unconditional
guarantee of the Existing Bonds under applicable law and the rules and regulations promulgated by
the Securities and Exchange Commission and (z) not treated as a “controlled foreign corporation”
(as that term is defined in Section 957 of the Code and the applicable regulations thereunder) of
CGG Veritas Services Inc. to become an Additional Guarantor by executing the Guarantee Agreement
(or, in the case of an Additional Guarantor organized under the laws of Norway, the Norwegian
Guarantee Agreement) and each applicable Security Document in favor of the Collateral Agent and by
delivering to the Facility Agent each of the relevant documents similar to those referred to in
Section 4.02 for the Original Guarantors.

     SECTION 5.21. Maintenance of Ratings

     The Borrower shall use commercially reasonable efforts to cause the credit facilities
established under this Agreement to be continuously rated by S&P and Moody’s. The Borrower shall
use commercially reasonable efforts to maintain the Corporate Ratings and shall promptly notify the
Facility Agent in writing of any change in the Corporate Ratings.

ARTICLE VI

Negative Covenants

     SECTION 6.01. Year-end

     The Borrower shall not change its Accounting Reference Date or its quarterly accounting
period.

     SECTION 6.02. Financial Covenants

     The Borrower shall ensure that the financial condition of the Group shall be such that:

     (a) The ratio of (i) EBITDA less Capital Expenditures to (ii) Total Interest Costs
for each Relevant Period specified in Column 1 below shall not be less than the ratio set out in
Column 2 below opposite such Relevant Period.

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	Column 1	 
	Any Relevant Period expiring in the rolling	 	Column 2
	12 month period ending	 	Ratio
	 	March 31, 2007
	 	1.50:1.00
	 	June 30, 2007
	 	1.50:1.00
	 	September 30, 2007
	 	1.50:1.00
	 	December 31, 2007
	 	1.50:1.00
	 	March 31, 2008
	 	1.75:1.00
	 	June 30, 2008
	 	1.75:1.00
	 	September 30, 2008
	 	1.75:1.00
	 	December 31, 2008
	 	1.75:1.00
	 	March 31, 2009
	 	2.00:1.00
	 	June 30, 2009
	 	2.00:1.00
	 	September 30, 2009
	 	2.00:1.00
	 	December 31, 2009
	 	2.00:1.00
	 	March 31, 2010
	 	2.50:1.00
	 	June 30, 2010
	 	2.50:1.00
	 	September 30, 2010
	 	2.50:1.00
	 	December 31, 2010
	 	2.50:1.00
	 	March 31, 2011
	 	2.50:1.00
	 	June 30, 2011
	 	2.50:1.00
	 	September 30, 2011
	 	2.50:1.00
	 	December 31, 2011
	 	2.50:1.00

     (b) The Total Leverage Ratio in respect of each Relevant Period specified in Column
1 below shall not be greater than the ratio set out in Column 2 below opposite such Relevant
Period.

	 	 	 	 	 
	Column 1	 
	Any Relevant Period expiring in the rolling 12	 	Column 2
	month period ending	 	Ratio
	 	March 31, 2007
	 	2.25:1.00
	 	June 30, 2007
	 	2.25:1.00
	 	September 30, 2007
	 	2.25:1.00
	 	December 31, 2007
	 	2.25:1.00
	 	March 31, 2008
	 	2.00:1.00
	 	June 30, 2008
	 	2.00:1.00
	 	September 30, 2008
	 	2.00:1.00
	 	December 31, 2008
	 	2.00:1.00
	 	March 31, 2009
	 	1.75:1.00
	 	June 30, 2009
	 	1.75:1.00
	 	September 30, 2009
	 	1.75:1.00
	 	December 31, 2009
	 	1.75:1.00
	 	March 31, 2010
	 	1.50:1.00
	 	June 30, 2010
	 	1.50:1.00
	 	September 30, 2010
	 	1.50:1.00
	 	December 31, 2010
	 	1.50:1.00
	 	March 31, 2011
	 	1.50:1.00
	 	June 30, 2011
	 	1.50:1.00
	 	September 30, 2011
	 	1.50:1.00
	 	December 31, 2011
	 	1.50:1.00

Notwithstanding the foregoing, the Total Leverage Ratio in respect of the first Relevant Period
ending after the consummation of any Qualifying Acquisition shall not be greater than 2.25 to 1.00
(and the ratio set forth opposite such Relevant Period in Column 2 above shall be deemed not to
apply).

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     (c) The financial covenants set out in this Section 6.02 shall be tested by
reference to, and as at the date of, each of the financial statements and/or each Compliance
Certificate delivered pursuant to Section 5.02.

     SECTION 6.03. Merger

     No Obligor shall (and the Borrower shall ensure that no other member of the Group will) enter
into any amalgamation, demerger, merger, consolidation or corporate reconstruction except for a
Permitted Merger.

     SECTION 6.04. Change of Business

     The Borrower shall ensure that no substantial change is made to the general nature of the
business of the Borrower, the Obligors or the Group taken as a whole, as carried out (or
contemplated to be carried out and disclosed to the Facility Agent) at the date of this Agreement,
except to the extent of a Qualifying Business Disposal.  

     SECTION 6.05. Acquisitions

     No Obligor shall (and the Borrower shall ensure that no other member of the Group will) (a)
acquire a company or any shares or securities or a business (or, in each case, any interest in any
of them); or (b) incorporate a company; provided that this Section 6.05 does not apply to an
acquisition of a company, of shares, securities or a business (or, in each case, any interest in
any of them) or the incorporation of a company which is a Permitted Acquisition or a Permitted
Investment.

     SECTION 6.06. Joint Ventures and Investments

     (a) Except as permitted under paragraph (b) below, no Obligor shall (and the
Borrower shall ensure that no other member of the Group will) (i) enter into, invest in or acquire
(or agree to acquire) any shares, stocks, securities or other interest in any Joint Venture; or
(ii) transfer any assets or lend to, or guarantee or give an indemnity for, or give Security for
the obligations of a Joint Venture or maintain the solvency of or provide working capital to any
Joint Venture (or agree to do any of the foregoing).

     (b) Paragraph (a) above does not apply to any entry into, investment in or
acquisition of (or agreement to acquire) any interest in a Joint Venture or transfer of assets (or
agreement to transfer assets) to a Joint Venture or loan made to, or guarantee given in respect of
the obligations of, a Joint Venture if such transaction is a Permitted Acquisition, a Permitted
Disposal, a Permitted Joint Venture or a Permitted Investment.

     SECTION 6.07. Negative Pledge

     (a) Except as permitted under paragraph (b) below, (i) no Obligor shall (and the
Borrower shall ensure that no other member of the Group will) create or permit to exist any
Security over any of its assets; (ii) no Obligor shall (and the Borrower shall ensure that no other
member of the Group will) (w) sell, transfer or otherwise dispose of any of its assets on terms
whereby they are or may be leased to or re-acquired by an Obligor or any other member of the Group;
(x) sell, transfer or otherwise dispose of any of its receivables on recourse terms; (y) enter into
any arrangement

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under which money or the benefit of a bank or other account may be applied, set-off or made
subject to a combination of accounts; or (z) enter into any other preferential arrangement having a
similar effect, in each case, in circumstances where the arrangement or transaction is entered into
primarily as a method of raising Financial Indebtedness or of financing the acquisition of an asset
(any of the transactions described in this clause (ii), “Quasi-Security”).

     (b) Paragraph (a) above does not apply to any Security or, as the case may be,
Quasi-Security, which is a Permitted Security.

     SECTION 6.08. Disposals

     (a) Except as permitted under paragraph (b) below, no Obligor shall (and the
Borrower shall ensure that no other member of the Group will) enter into a single transaction or a
series of transactions (whether related or not and whether voluntary or involuntary) to sell,
lease, transfer or otherwise dispose of any asset.

     (b) Paragraph (a) above does not apply to any sale, lease, transfer or other
disposal which is a Permitted Disposal, a Permitted Share Issue or any Permitted Merger referred to
in clause (d) of the definition of Permitted Merger.

     SECTION 6.09. Arm’s Length Basis

     (a) Except as permitted by paragraph (b) below, no Obligor shall (and the Borrower
shall ensure no other member of the Group will) enter into any transaction with any Affiliate that
is not an Obligor on terms that are less favorable to such Obligor than those that it could have
been obtained in a comparable transaction with an unrelated Person or, if there is no such
comparable transaction, on terms that are not fair and reasonable to such Obligor.

     (b) The following transactions shall not be a breach of this Section 6.09: (i)
intra-Group loans permitted under Section 6.10; (ii) fees, costs and expenses payable in connection
with the Transactions in the amounts set out in the relevant transaction documents or otherwise or
agreed to by the Facility Agent; (iii) any employment agreement or other employee compensation plan
or arrangement (including stock purchase and stock option plans) entered into (or amended, restated
or supplemented from time to time) by Borrower, CGG Veritas Services Inc. or any member of the
Group or Target Group (x) in the ordinary course of business of Borrower or such member of the
Group (or otherwise approved by the board of directors of Borrower) or (y) in connection with the
Synergies Implementation Plan or any integration relating to the Merger, including, for the
avoidance of doubt, any compensation plan, incentive plan, retention plan, severance plan, stock
purchase plan, stock option plan and any other arrangement involving officers, directors or
employees of any member of the Group (including any member of the Target Group) relating thereto
and any transaction contemplated by any of the foregoing; provided, that, in the case of (A) any
such stock option or free share plans subject to this clause (iii) that are applicable only to
executive officers or other members of senior management, such plans are approved by Borrower’s
board of directors pursuant to a recommendation by an appropriate committee of Borrower’s board of
directors, (B) any other plans subject to this clause (iii) that are applicable only to Borrower’s
chief executive officer, Borrower’s presidents and/or the CGG Veritas Services Inc.’s president,
such plans are approved by Borrower’s board of directors pursuant to a recommendation by an
appropriate committee of Borrower’s board of directors, and (C) any other plans subject to this
clause (iii) that are applicable to executive officers or other members of senior management (other
than the chief executive officer and/or the presidents), such plans are approved by Borrower’s
chief

- 61 -

 

executive officer; and (iv) loans or advances to officers, directors and employees of Borrower
or any member of the Group made in the ordinary course of business and consistent with past
practices of Borrower and the Group in an aggregate amount not to exceed $5,000,000 outstanding at
any one time.

     SECTION 6.10. Loans or Credit

     (a) Except as permitted under paragraph (b) below, no Obligor shall (and the
Borrower shall ensure that no other member of the Group will) be a creditor in respect of any
Financial Indebtedness.

     (b) Paragraph (a) above does not apply to a Permitted Loan.

     SECTION 6.11. No Guarantees or Indemnities

     (a) Except as permitted under paragraph (b) below, no Obligor shall (and the
Borrower shall ensure that no member of the Group will) incur, or allow to remain outstanding, any
guarantee in respect of any obligation of any person.

     (b) Paragraph (a) does not apply to a guarantee which is a Permitted Guarantee.

     SECTION 6.12. Dividends and Share Redemption

     (a) Except as permitted under paragraph (b) below, the Borrower shall ensure that no
member of the Group will (i) declare, make or pay any dividend, charge, fee or other distribution
(or interest on any unpaid dividend, charge, fee or other distribution) (whether in cash or in
kind) on, or in respect of, its share capital (or any class of its share capital); (ii) repay or
distribute any dividend or share premium reserve; (iii) pay, or allow any member of the Group to
pay, any management, advisory or other fee to, or to the order of, any shareholder holding 10% or
more of the Equity Interests of the Borrower; or (iv) redeem, repurchase, defease, retire or repay
any of its share capital or resolve to do so (any of the transactions described in clauses (i)
through (iv) above, a “Restricted Payment”).

     (b) Paragraph (a) does not apply as follows: (i) any dividend or share redemption
constituting a Permitted Share Issue may be made; (ii) (x) any Subsidiary of the Borrower may pay
dividends or return capital to the Borrower or any wholly owned Subsidiary of the Borrower, and (y)
any non-wholly owned Subsidiary of the Borrower may pay cash dividends to its shareholders
generally so long as the Borrower or its respective Subsidiary which owns the ownership interests
in the Subsidiary paying such dividends receives at least its proportionate share thereof (based
upon its relative holding of the ownership interests in the Subsidiary paying such dividends and
taking into account the relative preferences, if any, of the various classes of ownership interests
of such Subsidiary); (iii) the Borrower may, so long as no Event of Default then exists or would
result therefrom, pay cash in lieu of issuing fractional shares of the Borrower’s common or
perpetual preferred Equity Interests; (iv) so long as no Event of Default then exists or would
result therefrom, the Borrower may repurchase its common or perpetual preferred Equity Interests
(and/or options or warrants in respect thereof) pursuant to, and in accordance with the terms of,
(x) any employment agreement, plan or arrangement of a type described in Section 6.09(b)(iii),
provided that the aggregate amount of cash paid in respect of all such repurchases in any calendar
year pursuant to this subclause (x) does not exceed $25,000,000 (excluding any amounts paid in
connection with stock options of the Target cancelled in the Merger) and (y) the liquidity contract

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between the Borrower and Société Rothschild & Cie Banque dated November 1, 2005, provided that
the net obligations of the Borrower pursuant to this clause
(y) does not exceed €50,000,000 at
any time; (v) the Borrower may issue and exchange shares of any class or series of its common or
perpetual preferred Equity Interests now or hereafter outstanding for shares of any other class or
series of its common or perpetual preferred Equity Interests now or hereafter outstanding; (vi) the
Borrower may, in connection with any reclassification of its common or perpetual preferred Equity
Interests and any exchange permitted by clause (v) above, pay cash in de minimis amounts per share
in lieu of issuing fractional shares of any class or series of its common or perpetual preferred
Equity Interests; (vii) the Borrower may issue shares of any class or series of its common or
perpetual preferred Equity Interests (including, without limitation, the Borrower’s American
Depositary Shares) required to be issued upon conversion of the Target Convertible Notes and, after
the Closing Date, repurchase up to the same amount of such Equity Interests (after giving effect to
any stock split, reverse stock split or similar event); provided that the Borrower may not
repurchase more than the Target Share Repurchase Amount pursuant to this clause (vii); (viii) the
Borrower may make cash payments to the holders of the Target Convertible Notes in connection with
the conversion of such Target Convertible Notes after the Closing Date of up to an amount equal to
the Target Required Cash Amount; (ix) the Borrower (or the relevant Subsidiary) may dividend the
capital stock of Sercel Holding to the Borrower’s shareholders (including, without limitation, to
effect a spin-off of Sercel Holding), provided that such transaction results in a release of the
relevant Sercel Companies as guarantors of the Existing Bonds pursuant to Clause 10.04 of the
Existing Bond Indenture and as Guarantors hereunder, and provided further that, (x) so long as no
Event of Default then exists or would result therefrom, the Borrower and the Subsidiaries may make
other Restricted Payments (x) other than as provided in subclause (y) below, in an aggregate
amount, together with all other such Restricted Payments, less than or equal to $50,000,000, and
(y) from and after the time at which $50,000,000 of Restricted Payments permitted by this clause
(x) have been made, if the Total Leverage Ratio calculated on a pro forma basis after giving effect
to such Restricted Payment and any financing therefor would be less than or equal to the lesser of
(A) 1.75 to 1.00 and (B) the ratio for the most recently ended Relevant Period set forth in Section
6.02(b), in an amount less than or equal to the Available Amount that is Not Otherwise Applied at
the time such transaction is consummated (it being understood that a single transaction may utilize
amounts available, if any, under both subclause (x) and subclause (y) of this clause (x)).

     SECTION 6.13. Financial Indebtedness

     (a) Except as permitted under paragraph (b) below, no Obligor shall (and the
Borrower shall ensure that no other member of the Group will) incur, or allow to remain
outstanding, any Financial Indebtedness.

     (b) Paragraph (a) above does not apply to Financial Indebtedness which is Permitted
Financial Indebtedness.

     SECTION 6.14. Share Capital

     No Obligor shall (and the Borrower shall ensure no other member of the Group will) issue any
shares except pursuant to a Permitted Share Issue.

     SECTION 6.15. Amendments

     No Obligor shall (and the Borrower shall ensure that no member of the Group will) amend, vary,
novate, supplement, supersede, waive or terminate any term of a Finance Document or any

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other document delivered to the Facility Agent pursuant to Section 4.02 or to the Collateral
Agent pursuant to Section 5.20, except in writing in accordance with the provisions of Section
9.08.

ARTICLE VII

Events of Default

     In case of the happening of any of the following events (“Events of Default”):

     (a) An Obligor does not pay, on the relevant due date, any amount payable
pursuant to a Finance Document at the place at and in the currency in which it is expressed
to be payable unless (i) its failure to pay is caused by administrative or technical error;
and (ii) payment is made within 2 Business Days of its due date;

     (b) Any requirement of Section 6.02 is not satisfied or an Obligor does not
comply with the provisions of Section 6.03, Section 6.05, Section 6.07 or Section 6.08;

     (c) An Obligor does not comply with any provision of any Security Document;

     (d) An Obligor does not comply with any provision of the Finance Documents
(other than those referred to in paragraphs (a) and (b) above; provided, however, that no
Event of Default under this paragraph (d) will occur if the failure to comply is capable of
remedy and is remedied within 15 Business Days (or in the case of any Event of Default
under Section 5.01, Section 5.02 or Section 5.03, 10 Business Days) of the Facility Agent
giving notice to the Borrower or relevant Obligor or the Borrower or an Obligor becoming
aware of the failure to comply;

     (e) Any representation or statement made or deemed to be made by an Obligor
in the Finance Documents or any other document delivered by or on behalf of any Obligor
under or in connection with any Finance Document is or proves to have been incorrect or
misleading in any material respect when made or deemed to be made;

     (f) (i) Any Financial Indebtedness of any member of the Group is not paid
when due or within any originally applicable grace period; (ii) any Financial Indebtedness
of any member of the Group is declared to be or otherwise becomes due and payable prior to
its specified maturity as a result of an event of default (however described); (iii) any
commitment for any Financial Indebtedness of any member of the Group is cancelled or
suspended by a creditor of any member of the Group as a result of an event of default
(however described); or (iv) Any creditor of any member of the Group becomes entitled to
declare any Financial Indebtedness of any member of the Group due and payable prior to its
specified maturity as a result of an event of default (however described); provided,
however, that no Event of Default will occur under this paragraph (f) if the aggregate
amount of Financial Indebtedness or commitment for Financial Indebtedness falling within
clauses (i) through (iv) above is less than $15,000,000 (or its equivalent in any other
currency or currencies);

     (g) (i) An Obligor or a Material Subsidiary (x) is unable or admits
inability to pay its debts as they become due, (y) is declared to be unable to pay its
debts under applicable law, or (z) suspends or threatens to suspend making payments on any
of its debts; (ii) the value of the assets of any Obligor is less than its liabilities
(taking into account contingent

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and prospective liabilities); (iii) a moratorium is declared in respect of any
indebtedness of any Obligor or Material Subsidiary. If a moratorium occurs, the ending of
the moratorium will not remedy any Event of Default caused by such moratorium; or (iv) the
Borrower or any Obligor or Material Subsidiary which conducts business in France is in a
state of cessation des paiements, or any member of the Group becomes insolvent for the
purpose of any applicable insolvency law;

     (h) (i) Any corporate action, legal proceedings or other procedure or step
is taken in relation to (w) the suspension of payments, a moratorium of any indebtedness,
winding-up, dissolution, administration or reorganization (by way of voluntary arrangement,
scheme of arrangement or otherwise) of any member of the Group other than a solvent
liquidation or reorganization of any member of the Group which is not an Obligor; (x) an
assignment for the benefit of creditors of any member of the Group; (y) the appointment of
a liquidator (other than in respect of a solvent liquidation of a member of the Group which
is not an Obligor), bankruptcy receiver, administrator, or other similar officer in respect
of any member of the Group or any material part of its assets; or (z) enforcement of any
Security over all or any material portion of the assets of the Group, or any analogous
procedure or step is taken in any jurisdiction (each a “Winding-up Petition”); provided
that this clause (i) shall not apply to (A) any involuntary Winding-up Petition which is
dismissed within 60 days after the filing or commencement thereof or an order for relief
having been entered with respect thereto; or (B) any corporate action, legal proceedings,
Winding-up Petition or other procedure or step which is part of a solvent reorganization of
any member of the Group permitted under this Agreement; (ii) the Borrower or any member of
the Group commences proceedings for conciliation in accordance with articles L.611-3 to
L.611-15 of the French Code de Commerce; or (iii) a judgment for sauvegarde, redressement
judiciaire, cession totale de l’entreprise or liquidation judiciaire is entered in relation
to the Borrower or any member of the Group under articles L.620-1 to L.644-6 of the French
Code de Commerce;

     (i) Any expropriation, attachment, sequestration, distress or execution or
any of the enforcement proceedings provided for in French law no. 91 650 of 9 July 1991, or
any analogous process in any jurisdiction, affects any asset or assets of the Borrower or a
Material Subsidiary and is not discharged within 14 days;

     (j) (i) It is or becomes unlawful for an Obligor to perform any of its
obligations under the Finance Documents, any Transaction Security created or expressed to
be created or evidenced by the Security Documents ceases to be effective or any
subordination created under the Intercreditor Agreement is or becomes unlawful; (ii) any
obligation or obligations of any Obligor under any Finance Documents are not (subject to
the Legal Reservations), or cease to be, legal, valid, binding or enforceable and the
cessation individually or cumulatively materially and adversely effects the interests of
the Lenders under the Finance Documents; or (iii) any Finance Document ceases to be in full
force and effect or any Transaction Security ceases to be legal, valid, binding,
enforceable or effective or is alleged by a party to it (other than a Finance Party) to be
ineffective;

     (k) Any Obligor or Material Subsidiary suspends or ceases to carry on (or
threatens to suspend or cease to carry on) all or a material part of its business except as
a result of a disposal which is a Permitted Disposal or a Permitted Merger;

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     (l) (i) An Obligor (other than the Borrower) ceases to be a wholly owned
(directly or indirectly) Subsidiary of the Borrower; or (ii) an Obligor ceases to own at
least the same percentage of shares in a Material Subsidiary, except, in either case, as a
result of a disposal which is a Permitted Disposal, Permitted Share Issue or a Permitted
Merger;

     (m) The Auditors qualify the audited annual consolidated financial
statements of the Borrower;

     (n) The authority or ability of any Obligor or Material Subsidiary to
conduct its business is limited or wholly or substantially curtailed by any seizure,
expropriation, nationalization, intervention, restriction or other action by or on behalf
of any governmental, regulatory or other authority or other person in relation to any
Obligor or Material Subsidiary or any of its assets;

     (o) An Obligor (or any other relevant party) rescinds, or purports to
rescind, or repudiates, or purports to repudiate, a Finance Document or any of the
Transaction Security or evidences an intention to rescind or repudiate a Finance Document
or any Transaction Security;

     (p) Any litigation, arbitration, administrative, governmental, regulatory or
other investigations, proceedings or disputes are commenced (a) in relation to the Finance
Documents or the transactions contemplated in the Finance Documents or (b) against any
member of the Group or its assets which has or is reasonably likely to have a Material
Adverse Effect;

     (q) Any member of the Group does not enter into any Security Documents
within the period contemplated in any Finance Document by reason of any failure by any
person to complete any financial assistance or corporate benefit procedures; or

     (r) A Change of Control occurs;

     then, and in every such event (other than an event with respect to the Borrower described in
paragraph (g) or (h) above), and at any time thereafter during the continuance of such event, the
Facility Agent may, without mise en demeure or any other judicial or extra judicial step, and shall
if so directed by the Majority Lenders, by notice to the Borrower but subject to the mandatory
provisions of articles L.620 1 to L.628 3 of the French Code de Commerce, take either or both of
the following actions, at the same or different times: (i) cancel the Total Commitments and (ii)
declare all outstanding Loans, together with accrued interest, and all other amounts accrued under
the Finance Documents immediately due and payable, whereupon the Total Commitments will be
cancelled and all such outstanding amounts will become immediately due and payable.

ARTICLE VIII

The Facility Agent and the Collateral Agent

     Each of the Lenders hereby irrevocably appoints the Facility Agent and the Collateral Agent
(for purposes of this Article VIII, the Facility Agent and the Collateral Agent are referred to
collectively as the “Agents”) as its agent and authorizes the Agents to take such actions on its
behalf and to exercise such powers as are delegated to such Agent by the terms of the Finance
Documents, together with such actions and powers as are reasonably incidental thereto, which each

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of the Agents hereby accepts. Without limiting the generality of the foregoing, the
Collateral Agent is hereby expressly authorized to execute and deliver or ratify, without the need
for any further authority from the Secured Parties, the Intercreditor Agreement, each Initial
Security Document and any and all other documents (including releases) with respect to the
Transaction Security, the Collateral and the rights of the Secured Parties with respect thereto, as
contemplated by and in accordance with the provisions of this Agreement and the Initial Security
Documents.

     Each of the Lenders hereby ratifies and confirms all documents (including the Intercreditor
Agreement) and transaction entered into and other actions by any of the Agents in the proper
exercise of the power of attorney granted to it hereunder.

     Each bank serving as an Agent hereunder shall have the same rights and powers in its capacity
as a Lender as any other Lender and may exercise the same as though it were not an Agent, and such
bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of
business with the Borrower or any Subsidiary or other Affiliate thereof as if it were not an Agent
hereunder.

     No Agent shall have any duties or obligations except those expressly set forth in the Finance
Documents. Without limiting the generality of the foregoing, (a) no Agent shall be subject to any
fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing,
(b) no Agent shall have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby that such Agent is
instructed in writing to exercise by the Majority Lenders (or such other number or percentage of
the Lenders as shall be necessary under the circumstances as provided in Section 9.08), and (c)
except as expressly set forth in the Finance Documents, no Agent shall have any duty to disclose,
nor shall it be liable for the failure to disclose, any information relating to the Borrower or any
of the other Subsidiaries that is communicated to or obtained by a bank serving as an Agent or any
of its Affiliates in any capacity. No Agent shall be liable for any action taken or not taken by it
with the consent or at the request of the Majority Lenders (or such other number or percentage of
the Lenders as shall be necessary under the circumstances as provided in Section 9.08) or in the
absence of its own gross negligence or willful misconduct. No Agent shall be deemed to have
knowledge of any Default unless and until written notice thereof is given to such Agent by the
Borrower or a Lender, and no Agent shall be responsible for or have any duty to ascertain or
inquire into (i) any statement, warranty or representation made in or in connection with any
Finance Document, (ii) the contents of any certificate, report or other document delivered
thereunder or in connection therewith, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth in any Finance Document, (iv) the validity,
enforceability, effectiveness or genuineness of any Finance Document or any other agreement,
instrument or document, or (v) the satisfaction of any condition set forth in Article IV or
elsewhere in any Finance Document, other than to confirm receipt of items expressly required to be
delivered to such Agent.

     Each Agent shall be entitled to rely upon, and shall not incur any liability for relying upon,
any notice, request, certificate, consent, statement, instrument, document or other writing
believed by it to be genuine and to have been signed or sent by the proper person. Each Agent may
also rely upon any statement made to it orally or by telephone and believed by it to have been made
by the proper person, and shall not incur any liability for relying thereon. Each Agent may consult
with legal counsel (who may be counsel for the Borrower), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it in accordance with
the advice of any such counsel, accountants or experts.

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     Each Agent may perform any and all its duties and exercise its rights and powers by or through
any one or more sub-agents appointed by it. Each Agent and any such sub-agent may perform any and
all its duties and exercise its rights and powers by or through their respective Related Parties.
The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agent and to the
Related Parties of each Agent and any such sub-agent, and shall apply to their respective
activities in connection with the syndication of the Facilities as well as activities as Agent.

     Subject to the appointment and acceptance of a successor Agent as provided below, either Agent
may resign at any time by notifying the Lenders and the Borrower. Upon any such resignation, the
Majority Lenders shall have the right, in consultation with the Borrower, to appoint a successor.
If no successor shall have been so appointed by the Majority Lenders and shall have accepted such
appointment within 30 days after the retiring Agent gives notice of its resignation, then the
retiring Agent may, on behalf of the Lenders, in consultation with the Borrower, appoint a
successor Agent which shall be a bank with an office in Paris, France or an Affiliate of any such
bank. Upon the acceptance of its appointment as Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and duties of the
retiring Agent, and the retiring Agent shall be discharged from its duties and obligations
hereunder. The fees payable by the Borrower to a successor Agent shall be the same as those payable
to its predecessor unless otherwise agreed between the Borrower and such successor. After an
Agent’s resignation hereunder, the provisions of this Article and Section 9.05 shall continue in
effect for the benefit of such retiring Agent, its sub-agents and their respective Related Parties
in respect of any actions taken or omitted to be taken by any of them while acting as Agent.

     Each Lender acknowledges that it has, independently and without reliance upon the Agents or
any other Lender and based on such documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that
it will, independently and without reliance upon the Agents or any other Lender and based on such
documents and information as it shall from time to time deem appropriate, continue to make its own
decisions in taking or not taking action under or based upon this Agreement or any other Finance
Document, any related agreement or any document furnished hereunder or thereunder.

ARTICLE IX

Miscellaneous

     SECTION 9.01. Notices

     Notices and other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or registered mail or sent by
fax, as follows:

     (a) if to the Borrower, to it at Tour Montparnasse — 33 avenue du Maine — 75755
Paris Cedex 15, France, Attention of Mr. Stéphane-Paul Frydman (Fax No. +33 (0)1 64 47 34 31);

     (b) if to the Facility Agent or the Swingline Lenders, to it at 115, rue Réaumur,
75002 Paris, France, Attention Augustin Bourcier de Carbon, (Fax No. +33(0) 1 58 19 30 90);

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     (c) if to the Collateral Agent, to Credit Suisse, Eleven Madison Avenue, New York,
NY 10010, Attention of Agency Group (Fax No. (212) 325-8304);

     (d) if to a Lender, to it at its address (or fax number) set forth in this Section
or in the Transfer Agreement pursuant to which such Lender shall have become a party hereto.

     All notices and other communications given to any party hereto in accordance with the
provisions of this Agreement shall be deemed to have been given on the date of receipt if delivered
by hand or overnight courier service or sent by fax or on the date five Business Days after
dispatch by certified or registered mail if mailed, in each case delivered, sent or mailed
(properly addressed) to such party as provided in this Section 9.01 or in accordance with the
latest unrevoked direction from such party given in accordance with this Section 9.01. As agreed
to among the Borrower, the Facility Agent, the Collateral Agent, the Swingline Lenders and the
applicable Lenders from time to time (or, in the case of any notice delivered by the Borrower to
the Facility Agent pursuant to any provision of Article II, as agreed to by the Borrower and the
Facility Agent specifically with respect to such notice), notices and other communications (other
than any notice delivered pursuant to Section 5.06) may also be delivered by e-mail to the e-mail
address of a representative of the applicable person provided from time to time by such person.

     SECTION 9.02. Survival of Agreement

     All covenants, agreements, representations and warranties made by the Borrower herein and in
the certificates or other instruments prepared or delivered in connection with or pursuant to this
Agreement or any other Finance Document shall be considered to have been relied upon by the Lenders
and shall survive the making by the Lenders of the Loans, regardless of any investigation made by
the Lenders or on their behalf, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any Fee or any other amount payable under this
Agreement or any other Finance Document is outstanding and so long as the Commitments have not been
terminated. The provisions of Section 2.13, Section 2.15, Section 2.20 and Section 9.05 shall
remain operative and in full force and effect regardless of the expiration of the term of this
Agreement, the consummation of the transactions contemplated hereby, the repayment of any of the
Loans, the expiration of the Commitments, the invalidity or unenforceability of any term or
provision of this Agreement or any other Finance Document, or any investigation made by or on
behalf of the Facility Agent, the Collateral Agent or any Lender.

     SECTION 9.03. Binding Effect

     This Agreement shall become effective when it shall have been executed by the Borrower, the
Facility Agent, the Collateral Agent, the Lenders and the Swingline Lenders.

     SECTION 9.04. Changes to the Lenders

     (a) Transfers by the Lenders

	 	(i)	 	Subject to this Section 9.04, a Lender (the “Existing Lender”) may
transfer any of its rights (including such as relate to that Lender’s
participation in each Loan) and obligations, to another bank or financial
institution (the “New Lender”).

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	 	(ii)	 	The consent of the Finance Parties is hereby given to a transfer by an
Existing Lender to a New Lender.

     (b) Conditions of transfer

	 	(i)	 	Unless an Event of Default has occurred and is continuing, the consent
of the Borrower is required for a transfer by an Existing Lender, provided that
the Borrower hereby consents to a transfer to another Lender or an Affiliate of a
Lender.
	 
	 	(ii)	 	The consent of the Borrower to a transfer must not be unreasonably
withheld or delayed without reasonable grounds. The Borrower will be deemed to
have given its consent five (5) Business Days after the Existing Lender has
requested it unless consent is expressly refused by the Borrower within that
time.
	 
	 	(iii)	 	The consent of the Borrower to a transfer must not be withheld solely
because the assignment or transfer may result in an increase to the Mandatory
Cost.
	 
	 	(iv)	 	A transfer will only be effective if the procedure set out in Section
9.04 (e) (Procedure for transfer) is complied with.
	 
	 	(v)	 	If (A) a Lender transfers any of its rights or obligations under the
Finance Documents or changes its Facility Office; and (B) as a result of
circumstances existing at the date the transfer or change occurs, an Obligor
would be obliged to make a payment to the New Lender or Lender acting through its
new Facility Office under Section 2.19(a) (Tax Gross-up and Indemnities) or
Section 2.13 (Reserve Requirements; Change in Circumstances), then the New Lender
or Lender acting through its new Facility Office is only entitled to receive
payment under those Sections to the same extent as the Existing Lender or Lender
acting through its previous Facility Office would have been if the transfer or
change had not occurred.
	 
	 	(vi)	 	Any transfer will be of a minimum amount of $ 5,000,000 except in case
of a transfer which has the effect of reducing the participation of the relevant
Lender to zero.
	 
	 	(vii)	 	Any Existing Lender which is a Swingline Lender may (i) transfer its
Revolving Credit Commitment (or any part thereof) without transferring its
Swingline Commitment and/or (ii) transfer the whole of its Swingline Commitment
(but not any part thereof) whereby its Revolving Credit Commitment is reduced by
the amount corresponding to its Swingline Commitment.

     (c) Transfer fee

The New Lender shall, on the date upon which a transfer takes effect, pay to the
Facility Agent (for its own account) a fee of EUR 2,500.

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     (d) Limitation of responsibility of Existing Lenders

	 	(i)	 	Unless expressly agreed to the contrary, an Existing Lender makes no
representation or warranty and assumes no responsibility to a New Lender for (A)
the legality, validity, effectiveness, adequacy or enforceability of the Finance
Documents or any other documents, (B) the financial condition of any Obligor, (C)
the performance and observance by any Obligor of its obligations under the
Finance Documents or any other documents, or (D) the accuracy of any statements
(whether written or oral) made in or in connection with any Finance Document or
any other document, and any representations or warranties implied by law are
excluded.
	 
	 	(ii)	 	Each New Lender confirms to the Existing Lender and the other Finance
Parties that it (A) has made (and shall continue to make) its own independent
investigation and assessment of the financial condition and affairs of each
Obligor and its related entities in connection with its participation in this
Agreement and has not relied exclusively on any information provided to it by the
Existing Lender in connection with any Finance Document and (B) will continue to
make its own independent appraisal of the creditworthiness of each Obligor and
its related entities whilst any amount is or may be outstanding under the Finance
Documents or any Commitment is in force.
	 
	 	(iii)	 	Nothing in any Finance Document obliges an Existing Lender to (A)
accept a re-transfer from a New Lender of any of the rights and obligations
assigned or transferred under this Section 9.04 (or (B) support any losses
directly or indirectly incurred by the New Lender by reason of the
non-performance by any Obligor of its obligations under the Finance Documents or
otherwise.

     (e) Procedure for transfer

	 	(i)	 	Subject to the conditions set out in Section 9.04(b) (Conditions of
transfer) a transfer is effected in accordance with paragraph (iii) below when
the Facility Agent executes an otherwise duly completed Transfer Agreement
delivered to it by the Existing Lender and the New Lender. The Facility Agent
shall, subject to paragraph (ii) below, as soon as reasonably practicable after
receipt by it of a duly completed Transfer Agreement appearing on its face to
comply with the terms of this Agreement and delivered in accordance with the
terms of this Agreement, execute that Transfer Agreement.
	 
	 	(ii)	 	The Facility Agent shall only be obliged to execute a Transfer
Agreement delivered to it by the Existing Lender and the New Lender once it is
satisfied it has complied with all necessary “know your customer” or other
similar checks under all applicable laws and regulations in relation to the
transfer to such New Lender. Any Transfer Agreement shall be delivered to the
Facility Agent at least five (5) Business days prior to the proposed Transfer
date specified therein.
	 
	 	(iii)	 	By virtue of the execution of a Transfer Agreement, as from the
Transfer Date (A) to the extent that in the Transfer Agreement the Existing
Lender

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	 	 	 	seeks to transfer its rights and obligations under the Finance Documents, the
Existing Lender shall be discharged to the extent provided for in the Transfer
Agreement from further obligations towards each of the Obligors and the other
Finance Parties under the Finance Documents, (B) the rights and obligations of
the Existing Lender with respect to the Obligors shall be transferred to the
New Lender, to the extent provided for in the Transfer Agreement, (C) the
Facility Agent, the Arranger, the New Lender and other Lenders shall have the
same rights and obligations between themselves as they would have had had the
New Lender been an Original Lender with the rights and/or obligations to which
it is entitled and subject as a result of the transfer and to that extent the
Facility Agent, the Arranger and the Existing Lender shall each be released
from further obligations to each other under the Finance Documents; and (D)
the New Lender shall become a Party as a “Lender”.

     (f) Copy of Transfer Agreement to Company

The Facility Agent shall, as soon as reasonably practicable after it has executed a
Transfer Agreement, send to the Company a copy of that Transfer Agreement.

     (g) Disclosure of information

Any Lender may disclose to any of its Affiliates and any other person:

	 	(i)	 	to (or through) whom that Lender transfers (or may potentially assign or
transfer) all or any of its rights and obligations under this Agreement;
	 
	 	(ii)	 	with (or through) whom that Lender enters into (or may potentially
enter into) any sub-participation in relation to, or any other transaction under
which payments are to be made by reference to, this Agreement or any Obligor; or
	 
	 	(iii)	 	to whom, and to the extent that, information is required to be
disclosed by any applicable law or regulation,

any information about any Obligor, the Group and the Finance Documents as that Lender
shall consider appropriate if, in relation to paragraphs (i) and (ii) above, the
person to whom the information is to be given has entered into a Confidentiality
Undertaking.

     SECTION 9.05. Expenses; Indemnity

     (a) The Borrower agrees to pay all out-of-pocket expenses incurred by the Facility
Agent, the Collateral Agent and the Swingline Lenders in connection with the syndication of the
Facilities and the preparation and administration of this Agreement and the other Finance Documents
or in connection with any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions hereby or thereby contemplated shall be consummated) or incurred
by the Facility Agent, the Collateral Agent or any Lender in connection with the enforcement or
protection of its rights in connection with this Agreement and the other Finance Documents or in
connection with the Loans made, including the fees, charges and disbursements of Clifford Chance

- 72 -

 

Europe LLP, counsel for the Facility Agent and Cravath, Swaine & Moore LLP, counsel for the
Collateral Agent, and, in connection with any such enforcement or protection, the fees, charges and
disbursements of any other outside counsel for the Facility Agent, the Collateral Agent or any
Lender.

     (b) The Borrower agrees to indemnify the Facility Agent, the Collateral Agent, each
Lender and each Related Party of any of the foregoing persons (each such person being called an
“Indemnitee”) against, and to hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related out-of-pocket expenses, including reasonable outside counsel fees,
charges and disbursements, incurred by or asserted against any Indemnitee arising out of, in any
way connected with, or as a result of (i) the execution or delivery of this Agreement or any other
Finance Document or any agreement or instrument contemplated thereby, the performance by the
parties thereto of their respective obligations thereunder or the consummation of the Transactions
and the other transactions contemplated thereby (including the syndication of the Facilities), (ii)
the use of the proceeds of the Loans, (iii) any claim, litigation, investigation or proceeding
relating to any of the foregoing, whether or not any Indemnitee is a party thereto, or (iv) any
actual or alleged presence or Release of Hazardous Materials on any property currently or formerly
owned or operated by the Borrower or any of the Subsidiaries, or any Environmental Liability
related in any way to the Borrower or the Subsidiaries; provided that such indemnity shall not, as
to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or
related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted primarily from the gross negligence or willful misconduct of, or the
material breach of this Agreement by, such Indemnitee or (y) arise out of any claim, litigation,
investigation or proceeding brought by such Indemnitee against another Indemnitee (other than any
such claim, litigation, investigation or proceeding brought by or against the Facility Agent,
acting in its capacity as Facility Agent) that does not involve any act or omission of the Borrower
or any member of the Group.

     (c) To the extent that the Borrower fails to pay any amount required to be paid by
it to the Facility Agent, the Collateral Agent or the Swingline Lenders under paragraph (a) or (b)
of this Section, each Lender severally agrees to pay to the Facility Agent, the Collateral Agent or
the Swingline Lenders, as the case may be, such Lender’s pro rata share (determined as of the time
that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount;
provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the Facility Agent, the Collateral
Agent or the Swingline Lenders in their capacity as such. For purposes hereof, a Lender’s “pro
rata share” shall be determined based upon its share of the sum of the Aggregate Revolving Credit
Exposure and unused Commitments at the time.

     (d) To the extent permitted by applicable law, the Borrower shall not assert, and
hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any agreement or instrument contemplated
hereby, the Transactions, any Loan or the use of the proceeds thereof.

     (e) The provisions of this Section 9.05 shall remain operative and in full force and
effect regardless of the expiration of the term of this Agreement, the consummation of the
transactions contemplated hereby, the repayment of any of the Loans, the expiration of the
Commitments, the invalidity or unenforceability of any term or provision of this Agreement or any
other Finance

- 73 -

 

Document, or any investigation made by or on behalf of the Facility Agent, the Collateral
Agent or any Lender. All amounts due under this Section 9.05 shall be payable on written demand
therefor.

     SECTION 9.06. Right of Setoff

     If an Event of Default shall have occurred and be continuing, each Lender is hereby authorized
at any time and from time to time, except to the extent prohibited by law, to set off and apply any
and all deposits (general or special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by such Lender to or for the credit or the account of the
Borrower against any of and all the obligations of the Borrower now or hereafter existing under
this Agreement and other Finance Documents held by such Lender, irrespective of whether or not such
Lender shall have made any demand under this Agreement or such other Finance Document and although
such obligations may be unmatured. The rights of each Lender under this Section 9.06 are in
addition to other rights and remedies (including other rights of setoff) which such Lender may
have.

     SECTION 9.07. Applicable Law

     This Agreement is governed by French law. The Tribunal de Commerce de Paris has exclusive
jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a
dispute regarding the existence, validity or termination of this Agreement) (a “Dispute”). This
Section is for the benefit of the Finance Parties only. As a result, no Finance Party shall be
prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction. To
the extent allowed by law, the Finance Parties may take concurrent proceedings in any number of
jurisdictions.

     SECTION 9.08. Waivers; Amendment

     (a) Subject to Section 9.08(c) any term of the Finance Documents may be amended or
waived only with the consent of the Majority Lenders and the Borrower and any such amendment or
waiver will be binding on all Parties.

     (b) The Facility Agent may effect, on behalf of any Finance Party, any amendment or
waiver permitted by this Section.

     (c) An amendment or waiver that has the effect of changing or which relates to:

	 	(i)	 	the definition of “Majority Lenders” in Section 1.01 (Defined Terms);
	 
	 	(ii)	 	an extension to the date of payment of any amount under the Finance
Documents;
	 
	 	(iii)	 	a reduction in the Margin or a reduction in the amount of any payment
of principal, interest, fees or commission payable;
	 
	 	(iv)	 	an increase in or an extension of any Commitment;
	 
	 	(v)	 	a change to the Borrower or Guarantors other than in accordance with
Section 5.20(d) and the terms of the Guarantee Agreement or the Norwegian
Guarantee Agreement;

- 74 -

 

	 	(vi)	 	any provision which expressly requires the consent of all the Lenders;
or
	 
	 	(vii)	 	Section 2.01 (b), Section 9.04 (Changes to the Lenders) or this
Section 9.08,

shall not be made without the prior consent of all the Lenders.

     (d) An amendment or waiver that has the effect of changing or which relates to
Section 2.17 shall not be made without the prior written consent of all the Swingline Lenders and
the Majority Lenders.

     (e) An amendment or waiver which relates to the rights or obligations of the
Facility Agent or the Lead Arrangers may not be effected without the consent of the Facility Agent
or the Lead Arrangers.

     SECTION 9.09. Severability

     In the event any one or more of the provisions contained in this Agreement or in any other
Finance Document should be held invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein and therein shall not in
any way be affected or impaired thereby (it being understood that the invalidity of a particular
provision in a particular jurisdiction shall not in and of itself affect the validity of such
provision in any other jurisdiction). The parties shall endeavor in good-faith negotiations to
replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect
of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

     SECTION 9.10. Headings

     Article and Section headings and the Table of Contents used herein are for convenience of
reference only, are not part of this Agreement and are not to affect the construction of, or to be
taken into consideration in interpreting, this Agreement.

- 75 -

 

     This Agreement has been entered into in Paris in fifteen (15) original copies on the date
stated at the beginning of this Agreement.

COMPAGNIE GÉNÉRALE DE 

GÉOPHYSIQUE - VERITAS, as Borrower

by

	 	 	 
	Name: /s/ S. P. Frydman
	 	 
	 
	 	 
	Title:
	 	 
	 
	 	 
	NATIXIS, as Lender

	 	BNP PARIBAS, as Lender
	by

	 	by
	 
	 	 
	Name:
/s/ J. P. Chavanne

	 	Name: /s/ J. P. Chavanne
	 
	 	 
	Title:

	 	Title:
	 
	 	 
	SOCIETE GENERALE, Lender 

by

	 	CREDIT MUTUEL — CIC (acting
through 

Crédit Industriel et Commercial), as Lender 

by
	 
	 	 
	Name: /s/ J. P. Chavanne

	 	Name: /s/ J. Lemonnier
	 
	 	 
	Title:

	 	Title:
	 
	 	 
	CALYON, as Lender

	 	KBC, as Lender
	by

	 	by
	 
	 	 
	Name: /s/ J. Lemonnier

	 	Name: /s/ O. Menard
	 
	 	 
	Title:

	 	Title:

- 76 -

 

	 	 	 
	NATIXIS, as Facility Agent 

by

	 	CREDIT SUISSE, Cayman Islands Branch, as Collateral Agent

by
	 
	 	 
	Name:
/s/ J. P. Chavanne

	 	Name: /s/ V. Landon
	 
	 	 
	Title:

	 	Title:
	 
	 	 
	NATIXIS, as Mandated Lead Arranger

	 	Agent

	by

	 	by
	 
	 	 
	Name:
/s/ J. P. Chavanne

	 	Name: /s/ E. Regniez
	 
	 	 
	Title:

	 	Title:
	 
	 	 
	SG CORPORATE & INVESTMENT BANKING, as 

Lead Arranger

	 	BNP PARIBAS, as Lead Arranger
	by

	 	by
	 
	 	 
	Name:
/s/ J. P. Chavanne

	 	Name: /s/ J. P. Chavanne

	 
	 	 
	Title:

	 	Title:
	 
	 	 
	CALYON, as Lead Arranger

	 	
CREDIT MUTUEL — CIC (acting through Crédit Industriel et
Commercial), as Lead Arranger
	by

	 	by
	 
	 	 
	Name:
/s/ J. Lemonnier

	 	
Name: /s/ J. Lemonnier

	 
	 	 
	Title:

	 	Title:
	 
	 	 
	

	 	KBC, as Lead Arranger

	

	 	by
	 
	 	 
	
	 	
Name: /s/ O. Menard

	 
	 	 
	

	 	Title:

- 77 -

 

Schedule 1

Commitments

	 	 	 
	Name of Lender	 	Commitment
	Natixis

	 	 $ 45,000,000
	 
	 	 
	 

	 	(including $25,000,000 Swingline)
	 
	 	 
	BNP Paribas

	 	 $ 45,000,000
	 
	 	 
	 

	 	(including $25,000,000 Swingline)
	 
	 	 
	Societe
Generale

	 	 $ 45,000,000
	 
	 	 
	CREDIT MUTUEL – CIC (acting through 

Credit Industriel et Commercial)

	 	 $ 25,000,000
	 
	 	 
	Calyon

	 	 $ 20,000,000
	 
	 	 
	KBC

	 	 $ 20,000,000
	 
	 	 
	Total Commitments

	 	 $200,000,000

- 78 -

 

Schedule 2

Form of Transfer Agreement

This Transfer Agreement is made on [l]

BETWEEN:

	(1)	 	[l] (the “Existing Lender”)

AND:

	(2)	 	[l] (the “New Lender”)

WHEREAS:

	(A)	 	The Existing Lender has entered into a revolving credit facility in an aggregate
amount equal to two hundred million dollars (USD 200,000,000) under a revolving credit
facility agreement dated [l], between Compagnie Générale de Géophysique — Veritas, the
financial institutions listed therein as Lenders, Natixis as Mandated Lead Arranger, and
Natixis as Facility Agent, Credit Suisse as Collateral Agent (the “Facility Agreement”).
	 
	(B)	 	The Existing Lender wishes to transfer and the New Lender wishes to acquire [all]
[the part specified in the Schedule of this Transfer Agreement] of the Existing Lender’s
Commitment, rights and obligations referred to in the Schedule to this Transfer Agreement.
	 
	(C)	 	Terms defined in the Facility Agreement have the same meaning when used in this
Transfer Agreement.

IT IS AGREED AS FOLLOWS:

	1.	 	The Existing Lender and the New Lender agree to the transfer (cession) of [all] [the
part specified in the Schedule of this Transfer Agreement] of the Existing Lender’s
Commitment, rights and obligations referred to in the Schedule to this Transfer Agreement in
accordance with Section [l] of the Facility Agreement (Procedure for transfer).
	 
	2.	 	The proposed Transfer Date is [l].
	 
	3.	 	The Facility Office and address, fax number and attention details for notices of the
New Lender for the purposes of Section [l] (Addresses) are set out in the Schedule of
this Transfer Agreement.
	 
	4.	 	The New Lender acknowledges the limitations on the Existing Lender’s liabilities set
out in paragraph (iii) of Section [l] (Conditions of transfer) of the Facility
Agreement.

- 79 -

 

	5.	 	The New Lender confirms to the other Finance Parties represented by the Facility Agent
that it will assume the same obligations to those Parties as it would have been under if it
was an original Lender.
	 
	6.	 	This Transfer Agreement is governed by French law. The Tribunal of Commerce of Paris
shall have jurisdiction in relation to any dispute concerning it.

SCHEDULE

Commitment/rights and obligations to be transferred

[insert relevant details]

[Facility Office address, fax number and attention details for notices and account details for payments]

	 	 	 
	[Existing Lender]

	 	[New Lender]
	By:

	 	By:

This Transfer Agreement is accepted by the Facility Agent and the Transfer Date is confirmed as

[l].

[Agent]

By:

- 80 -

 

Schedule 3

Borrowing Requests

Part I

Borrowing Request

(Revolving Loan other than a Swingline Loan)

From:  [Borrower]

To:      [Agent]

Dated:

Dear Sirs

Compagnie Générale de Géophysique — Veritas – $ 200,000,000 Facility Agreement dated [l] (the
“Agreement”)

We refer to the Agreement. This is a Borrowing Request. Terms defined in the Agreement have the
same meaning in this Borrowing Request unless given a different meaning in this Borrowing Request.

We wish to borrow a Loan on the following terms:

	 	 	 
	Proposed date of Borrowing:

	 	[l] (or, if that is not a Business Day, the next Business Day)
	 
	 	 
	Facility to be utilised:

	 	Revolving Facility
	 
	 	 
	Currency of Loan:

	 	[EUR] / [USD]
	 
	 	 
	Amount:

	 	[l] or, if less, the Available Facility
	 
	 	 
	Interest Period:

	 	[l]

We confirm that each condition specified in Section 4.01 (All Credit Events) is satisfied on the
date of this Borrowing Request.

The proceeds of this Loan should be credited to [account].

This Borrowing Request is irrevocable.

Yours faithfully

 

authorised signatory for

Compagnie Générale de Géophysique — Veritas

- 81 -

 

PART II

Borrowing Request

Swingline Loan

From:  [Borrower]

To:      [Agent]

Dated:

Dear Sirs,

Compagnie Générale de Géophysique — Veritas – $ 200,000,000 Facility Agreement dated [l] (the
“Agreement”)

	7.	 	We wish to borrow a Swingline Loan on the following terms:

	 	 	 	 	 
	 

	 	Proposed date of Borrowing:
	 	[1 to 5] (or, if that is not a [Swingline Business
Day], the next [Swingline Business Day]
	 
	 	 	 	 
	 

	 	Facility to be utilised:
	 	Swingline Facility
	 
	 	 	 	 
	 

	 	Amount:
	 	Euro [                    ] or, if less, the Available Swingline Facility
	 
	 	 	 	 
	 

	 	Interest Period:	 	 

	8.	 	We confirm that each condition specified in Section 4.01 (All Credit Events) is
satisfied on the date of this Borrowing Request.
	 
	9.	 	The proceeds of this Swingline Loan should be credited to [account].
	 
	10.	 	This Borrowing Request is irrevocable.

Yours faithfully

 

Authorised Signatory for

Compagnie Générale de Géophysique — Veritas

- 82 -

 

Schedule 4

List of Initial Security Documents 

Australia

	(1)	 	Memorandum of Deposit (Shares) dated 7 February 2007 between Veritas Investments Inc. and
Credit Suisse, for the benefit of the Secured Parties as defined therein;

Canada

	(2)	 	Pledge and Security Agreement (Canada) dated 7 February 2007 between Compagnie Générale de
Géophysique – Véritas, the Subsidiaries of Compagnie Générale de Géophysique – Véritas from
time to time party thereto and Credit Suisse;

France

	(3)	 	Financial Instruments Accounts Pledge Agreement (French) dated 7 February 2007 between
Compagnie Générale de Géophysique – Véritas and Credit Suisse;

Norway

	(4)	 	Guarantee Agreement (Norway) dated 7 February 2007 between Compagnie Générale de Géophysique
– Véritas, CGG Marine Resources Norge A/S, the Subsidiaries of Compagnie Générale de
Géophysique – Véritas from time to time party thereto and Credit Suisse;
	 
	(5)	 	Share Pledge Agreement dated 7 February 2007 between Compagnie Générale de Géophysique –
Véritas and Credit Suisse, in respect of shares in CGG Marine Resources Norge AS;
	 
	(6)	 	Share Pledge Agreement dated 7 February 2007 between Compagnie Générale de
Géophysique – Véritas and Credit Suisse, in respect of shares in Exploration Resources
AS;

United Kingdom

	(7)	 	Share Charge dated 7 February 2007 between Veritas Geophysical Corporation and Credit Suisse;

United States of America

	(8)	 	Guarantee Agreement dated 7 February 2007 between Compagnie Générale de Géophysique –
Véritas, the Subsidiaries of Compagnie Générale de Géophysique – Véritas from time to time
party thereto and Credit Suisse;

	(9)	 	Pledge and Security Agreement (US) dated 7 February 2007 between Compagnie Générale de
Géophysique – Véritas, the Subsidiaries of Compagnie Générale de Géophysique – Véritas from
time to time party thereto and Credit Suisse;

	(10)	 	Parent Pledge Agreement dated 7 February 2007 between Compagnie Générale de Géophysique –
Véritas and Credit Suisse;

- 83 -

 

	(11)	 	Copyright Security Agreement dated 7 February 2007 between CGG Véritas Services Inc.
(formerly know as Volnay Acquisition Co. II) and Credit Suisse;

	(12)	 	Trademark Security Agreement dated 7 February 2007 between CGG Véritas Services Inc.
(formerly know as Volnay Acquisition Co. II), CGGAmerica, Inc., Veritas Geophysical
Corporation and Credit Suisse;

	(13)	 	Patent Security Agreement dated 7 February 2007 between CGG Véritas Services Inc. (formerly
know as Volnay Acquisition Co. II), Sercel, Inc., and Credit Suisse;

and each of the security agreements, mortgages and other instruments and documents executed and
delivered pursuant to any of the foregoing or pursuant this Agreement, together with any other
document entered into by any Obligor creating or expressed to create any Security over all or any
part of its assets in respect of the obligations of any of the Obligors under any of the Finance
Documents.

- 84 -

 

Schedule 5

Mandatory Cost formulae

	(1)	 	The Mandatory Cost is an addition to the interest rate to compensate Lenders for the
cost of compliance with (a) the requirements of the Bank of England and/or the Financial
Services Authority (or, in either case, any other authority which replaces all or any of its
functions) or (b) the requirements of the European Central Bank.
	 
	(2)	 	On the first day of each Interest Period (or as soon as possible thereafter) the
Facility Agent shall calculate, as a percentage rate, a rate (the “Additional Cost Rate”) for
each Lender, in accordance with the paragraphs set out below. The Mandatory Cost will be
calculated by the Facility Agent as a weighted average of the Lenders’ Additional Cost Rates
(weighted in proportion to the percentage participation of each Lender in the relevant Loan)
and will be expressed as a percentage rate per annum.
	 
	(3)	 	The Additional Cost Rate for any Lender lending from a Facility Office in a
Participating Member State will be the percentage notified by that Lender to the Facility
Agent. This percentage will be certified by that Lender in its notice to the Facility Agent
to be its reasonable determination of the cost (expressed as a percentage of that Lender’s
participation in all Loans made from that Facility Office) of complying with the minimum
reserve requirements of the European Central Bank in respect of loans made from that Facility
Office.
	 
	(4)	 	The Additional Cost Rate for any Lender lending from a Facility Office in United
Kingdom will be calculated by the Facility Agent as follows:

	 	 	 	 	 
	 

	 	E x 0.01
	 	per cent. per annum
	 

	 	 

300
	 	 

	 	  Where:	 	 
	 
	 	  E	 	is designed to compensate Lenders for amounts payable under the Fees Rules and
is calculated by the Facility Agent as being the average of the most recent rates of
charge supplied by the Reference Banks to the Facility Agent pursuant to paragraph 7
below and expressed in pounds per GBP 1,000,000.

	(5)	 	For the purposes of this Schedule, “Fees Rules” means the rules on periodic fees
contained in the FSA Supervision Manual or such other law or regulation as may be in force
from time to time in respect of the payment of fees for the acceptance of deposits.
	 
	(6)	 	If requested by the Facility Agent, each Reference Bank shall, as soon as practicable
after publication by the Financial Services Authority, supply to the Facility Agent, the rate
of charge payable by that Reference Bank to the Financial Services Authority pursuant to the
Fees Rules in respect of the relevant Financial Year of the Financial Services Authority
(calculated for this purpose by that Reference Bank as being the average of the Fee Tariffs

- 85 -

 

	 	 	applicable to that Reference Bank for that Financial Year) and expressed in pounds per GBP
1,000,000 of the Tariff Base of that Reference Bank.
	 
	(7)	 	Each Lender shall supply any information required by the Facility Agent for the
purpose of calculating its Additional Cost Rate. In particular, but without limitation, each
Lender shall supply the following information on or prior to the date on which it becomes a
Lender:

	 	(a)	 	the jurisdiction of its Facility Office; and
	 
	 	(b)	 	any other information that the Facility Agent may reasonably require for such
purpose.

	 	 	Each Lender shall promptly notify the Facility Agent of any change to the information
provided by it pursuant to this paragraph.
	 
	(8)	 	The percentages of each Lender for the purpose of A and C above and the rates of
charge of each Reference Bank for the purpose of E above shall be determined by the Facility
Agent based upon the information supplied to it pursuant to paragraphs (6) and (7) above and
on the assumption that, unless a Lender notifies the Facility Agent to the contrary, each
Lender’s obligations in relation to cash ratio deposits and Special Deposits are the same as
those of a typical bank from its jurisdiction of incorporation with a Facility Office in the
same jurisdiction as its Facility Office.
	 
	(9)	 	The Facility Agent shall have no liability to any person if such determination
results in an Additional Cost Rate which over or under compensates any Lender and shall be
entitled to assume that the information provided by any Lender or Reference Bank pursuant to
paragraphs (3), (6) and (7) above is true and correct in all respects.
	 
	(10)	 	The Facility Agent shall distribute the additional amounts received as a result of
the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for each Lender
based on the information provided by each Lender and each Reference Bank pursuant to
paragraphs (3), (6) and (7) above.
	 
	(11)	 	Any determination by the Facility Agent pursuant to this Schedule in relation to a
formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall,
in the absence of manifest error, be conclusive and binding on all Parties.
	 
	(12)	 	The Facility Agent may from time to time, after consultation with the Company and
the Lenders, determine and notify to all Parties any amendments which are required to be made
to this Schedule in order to comply with any change in law, regulation or any requirements
from time to time imposed by the Bank of England, the Financial Services Authority or the
European Central Bank (or, in any case, any other authority which replaces all or any of its
functions) and any such determination shall, in the absence of manifest error, be conclusive
and binding on all Parties.

- 86 -

 

Schedule 6

Form of Compliance Certificate

	 	 	 
	To:

	 	Natixis as Facility Agent
	From:

	 	[Company]
	Dated:

	 	[l]

Dear Sirs

Compagnie Générale de Géophysique — Veritas – $200,000,000 Facility Agreement dated [l] (the
“Agreement”)

	1.	 	We refer to the Agreement. This is a Compliance Certificate. Terms defined in the
Agreement have the same meaning when used in this Compliance Certificate unless given a
different meaning in this Compliance Certificate.
	 
	2.	 	We confirm that: [Insert details of covenants to be certified]
	 
	3.	 	[We confirm that no Default is continuing.]

	 	 	 	 	 	 	 	 	 
	Signed:
	 	 	 	 	 	 	 	 
	 

	 	 

Director
	 	 	 	 

Director
	 	 
	 

	 	Of
	 	 	 	of	 	 
	 

	 	[Company]
	 	 	 	[Company]	 	 

                                                            

for and on behalf of

- 87 -EX-10.27

 

Exhibit 10.27

EXECUTION VERSION

 

U.S. $425,000,000

MASTER REPURCHASE AGREEMENT

by and among

ARBOR REALTY FUNDING LLC,

ARBOR REALTY LIMITED PARTNERSHIP

and

ARSR TAHOE, LLC,

each as a Seller

VARIABLE FUNDING CAPITAL COMPANY LLC,

as a Purchaser

WACHOVIA BANK, NATIONAL ASSOCIATION,

as the Swingline Purchaser

WACHOVIA CAPITAL MARKETS, LLC,

as the Deal Agent

and

ARBOR REALTY TRUST, INC.,

ARBOR REALTY LIMITED PARTNERSHIP

and

ARBOR REALTY SR, INC.,

each as a Guarantor

Dated as of March 30, 2007

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I DEFINITIONS	 	 	2	 
	Section 1.1

	 	Certain Defined Terms
	 	 	2	 
	Section 1.2

	 	Other Terms
	 	 	35	 
	Section 1.3

	 	Computation of Time Periods
	 	 	35	 
	Section 1.4

	 	Interpretation
	 	 	35	 
	 
	 	 	 	 	 	 
	ARTICLE II PURCHASE OF ELIGIBLE ASSETS	 	 	36	 
	Section 2.1

	 	Purchase and Sale
	 	 	36	 
	Section 2.2

	 	Transaction Mechanics; Related Matters
	 	 	37	 
	Section 2.3

	 	Reduction of Maximum Amount; Optional Repurchases
	 	 	40	 
	Section 2.4

	 	Extension of Facility Maturity Date and Funding Expiration Date
	 	 	41	 
	Section 2.5

	 	Payment of Price Differential
	 	 	42	 
	Section 2.6

	 	Request for Additional Transaction for Excess Margin
	 	 	42	 
	Section 2.7

	 	Margin Account Maintenance
	 	 	43	 
	Section 2.8

	 	Income Payments
	 	 	44	 
	Section 2.9

	 	Payment, Transfer and Custody
	 	 	45	 
	Section 2.10

	 	Disputes Regarding Market Value Determination
	 	 	47	 
	Section 2.11

	 	Hypothecation or Pledge of Purchased Assets
	 	 	47	 
	Section 2.12

	 	Fees
	 	 	47	 
	Section 2.13

	 	Increased Costs; Capital Adequacy; Illegality
	 	 	48	 
	Section 2.14

	 	Taxes
	 	 	49	 
	Section 2.15

	 	Condominium Loans/Land Loans
	 	 	50	 
	Section 2.16

	 	Swingline Purchasers
	 	 	51	 
	 
	 	 	 	 	 	 
	ARTICLE III CONDITIONS TO TRANSACTIONS	 	 	52	 
	Section 3.1

	 	Conditions to Closing and Initial Purchase
	 	 	52	 
	Section 3.2

	 	Conditions Precedent to all Transactions
	 	 	53	 
	Section 3.3

	 	Additional Opinions
	 	 	57	 
	 
	 	 	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES	 	 	57	 
	Section 4.1

	 	Representations and Warranties
	 	 	57	 
	 
	 	 	 	 	 	 
	ARTICLE V COVENANTS	 	 	67	 
	Section 5.1

	 	Covenants
	 	 	67	 
	 
	 	 	 	 	 	 
	ARTICLE VI ADMINISTRATION AND SERVICING	 	 	79	 
	Section 6.1

	 	Servicing
	 	 	79	 
	Section 6.2

	 	Seller as Servicer
	 	 	80	 
	Section 6.3

	 	Third Party Servicer
	 	 	80	 
	Section 6.4

	 	Duties of the Seller
	 	 	80	 
	Section 6.5

	 	Authorization of the Seller
	 	 	81	 
	Section 6.6

	 	Collection of Payments
	 	 	82	 
	Section 6.7

	 	Realization Upon Defaulted Purchased Items
	 	 	82	 
	Section 6.8

	 	Maintenance of Insurance Policies
	 	 	83	 
	Section 6.9

	 	Event of Default
	 	 	83	 
	Section 6.10

	 	Modification
	 	 	83	 
	Section 6.11

	 	Inspection
	 	 	84	 
	Section 6.12

	 	Servicing Compensation
	 	 	84	 
	Section 6.13

	 	Payment of Certain Expenses by Servicer
	 	 	84	 
	Section 6.14

	 	Pooling and Servicing Agreements
	 	 	84	 
	Section 6.15

	 	Servicer Default
	 	 	84	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE VII [RESERVED]	 	 	85	 
	 
	 	 	 	 	 	 
	ARTICLE VIII SECURITY INTEREST	 	 	85	 
	Section 8.1

	 	Security Interest
	 	 	85	 
	Section 8.2

	 	Release of Lien on Purchased Assets
	 	 	87	 
	Section 8.3

	 	Further Assurances
	 	 	87	 
	Section 8.4

	 	Remedies
	 	 	88	 
	Section 8.5

	 	Waiver of Certain Laws
	 	 	88	 
	Section 8.6

	 	Purchaser’s Duty of Care
	 	 	88	 
	 
	 	 	 	 	 	 
	ARTICLE IX POWER OF ATTORNEY	 	 	89	 
	Section 9.1

	 	Purchaser’s Appointment as Attorney–in–Fact
	 	 	89	 
	 
	 	 	 	 	 	 
	ARTICLE X EVENTS OF DEFAULT	 	 	90	 
	Section 10.1

	 	Events of Default
	 	 	90	 
	Section 10.2

	 	Remedies
	 	 	93	 
	Section 10.3

	 	Determination of Events of Default
	 	 	96	 
	 
	 	 	 	 	 	 
	ARTICLE XI INDEMNIFICATION	 	 	96	 
	Section 11.1

	 	Indemnities by the Seller
	 	 	96	 
	Section 11.2

	 	After–Tax Basis
	 	 	99	 
	 
	 	 	 	 	 	 
	ARTICLE XII THE DEAL AGENT	 	 	99	 
	Section 12.1

	 	Deal Agent
	 	 	99	 
	 
	 	 	 	 	 	 
	ARTICLE XIII MISCELLANEOUS	 	 	101	 
	Section 13.1

	 	Amendments and Waivers
	 	 	101	 
	Section 13.2

	 	Notices, Etc
	 	 	101	 
	Section 13.3

	 	Set–offs
	 	 	101	 
	Section 13.4

	 	No Waiver; Remedies
	 	 	102	 
	Section 13.5

	 	Binding Effect
	 	 	102	 
	Section 13.6

	 	Term of this Agreement
	 	 	102	 
	Section 13.7

	 	Governing Law; Consent to Jurisdiction; Waiver of Objection to Venue
	 	 	 103	 
	Section 13.8

	 	Jurisdiction; Waiver of Jury Trial
	 	 	103	 
	Section 13.9

	 	Costs, Expenses and Taxes
	 	 	103	 
	Section 13.10

	 	Legal Matters
	 	 	104	 
	Section 13.11

	 	Recourse Against Certain Parties
	 	 	104	 
	Section 13.12

	 	Protection of Right, Title and Interest in the Purchased Assets;
Further Action Evidencing Transactions
	 	 	105	 
	Section 13.13

	 	Confidentiality
	 	 	106	 
	Section 13.14

	 	Execution in Counterparts; Severability; Integration
	 	 	107	 
	Section 13.15

	 	Seller’s Waiver of Setoff
	 	 	108	 
	Section 13.16

	 	Assignments and Participations; Hypothecation of Purchased Assets
	 	 	108	 
	Section 13.17

	 	Heading and Exhibits
	 	 	108	 
	Section 13.18

	 	Single Agreements
	 	 	109	 
	Section 13.19

	 	Disclosure Relating to Certain Federal Protections
	 	 	109	 
	Section 13.20

	 	Intent
	 	 	109	 
	Section 13.21

	 	Periodic Due Diligence Review
	 	 	110	 
	Section 13.22

	 	Use of Employee Plan Assets
	 	 	111	 
	Section 13.23

	 	No Proceedings
	 	 	111	 
	Section 13.24

	 	Joint and Several Obligations
	 	 	112	 
	Section 13.25

	 	Third Party Beneficiary
	 	 	113	 

ii

 

	 	 	 	 	 	 	 
	SCHEDULES

	 
	 	 	 	 	 	 
	Schedule 1

	 	Representations and Warranties Regarding Mortgage Assets
	 	 	1	 
	Schedule 2

	 	[Reserved]
	 	 	1	 
	Schedule 3

	 	Accounts
	 	 	1	 
	Schedule 4

	 	Approved Servicers
	 	 	1	 
	Schedule 5

	 	List of Existing Financing Facilities
	 	 	1	 
	Schedule 6

	 	Exceptions to Subsection 4.1(h)(h)
	 	 	1	 
	Schedule 7

	 	UCC Filing Locations
	 	 	1	 
	Schedule 8

	 	List of Subsidiaries
	 	 	1	 
	 
	 	 	 	 	 	 
	EXHIBITS

	 
	 	 	 	 	 	 
	Exhibit I

	 	Form of Closing Certificate
	 	 	1	 
	Exhibit II

	 	Form of Confirmation
	 	 	1	 
	Exhibit III–1

	 	Power of Attorney – Seller
	 	 	1	 
	Exhibit III–2

	 	Power of Attorney – Pledgor
	 	 	1	 
	Exhibit IV

	 	Form of Transaction Request
	 	 	1	 
	Exhibit V

	 	Form of Account Agreement
	 	 	1	 
	Exhibit VI–1

	 	Form of Perfection Certificate of the Seller
	 	 	1	 
	Exhibit VI–2

	 	Form of Perfection Certificate of the Pledgor
	 	 	1	 
	Exhibit VII–1

	 	Form of Seller’s Release Letter
	 	 	1	 
	Exhibit VII–2

	 	Form of Warehouse Lender’s Release Letter
	 	 	1	 
	Exhibit VIII

	 	Form of Servicer Redirection Notice
	 	 	1	 
	Exhibit IX

	 	Form of Request for Additional Transactions for Excess Margin
	 	 	 1	 
	Exhibit X

	 	Compliance Certificate
	 	 	1	 
	Exhibit XI

	 	Form of Purchased Asset Data Summary
	 	 	1	 
	Exhibit XII

	 	Form of Margin Deficit Notice
	 	 	1	 
	Exhibit XIII

	 	Form of Assignment
	 	 	1	 
	Exhibit XIV

	 	Form of Joinder Agreement
	 	 	1	 

iii

 

MASTER REPURCHASE AGREEMENT

          THIS
MASTER REPURCHASE AGREEMENT (as amended, modified, restated, replaced, waived, substituted, supplemented or extended from time to time, the “Agreement”) is made as of this 30th day of March, 2007, by and among:

          (1) ARBOR
REALTY FUNDING LLC, a Delaware limited liability company (together
with its successors and permitted assigns, “ARF”),
as a Seller;

          
(2) ARBOR REALTY LIMITED PARTNERSHIP, a Delaware limited partnership (together with its successors
 and permitted assigns, “Arbor Realty”), as a Seller;

          (3) ARSR
TAHOE, LLC, a Delaware limited liability company (together with its successors and permitted assigns, “ARSR Tahoe”), as a Seller;

          (4) VARIABLE FUNDING CAPITAL COMPANY LLC, a Delaware limited liability company (together with its successors and assigns, “VFCC”), as a Purchaser;

          
(5) WACHOVIA BANK, NATIONAL ASSOCIATION (together with its successors and assigns, “Wachovia”), as the Swingline Purchaser;

          
(6) WACHOVIA CAPITAL MARKETS, LLC, a Delaware limited liability company (together with its successors and assigns, “WCM”), as the deal agent for the Secured Parties (together with its successors and assigns in such capacity, the “Deal Agent”);

          
(7) ARBOR REALTY TRUST, INC., a Maryland corporation (together with its successors and permitted assigns, “ART”), as a Guarantor;

          (8) ARBOR REALTY, as a Guarantor; and

          (9) ARBOR REALTY SR, INC., a Maryland corporation (together with its successors and permitted assigns, “ARSR”), as a Guarantor.

R E C I T A L S

          WHEREAS, the Seller desires to sell and the Purchaser desires to purchase from time to time
Eligible Assets under the terms and conditions stated herein; and

          WHEREAS, if the Purchaser purchases one (1) or more Eligible Assets, the parties desire that
the Seller repurchase the Purchased Asset(s) on or before the Facility Maturity Date under the
terms and conditions stated herein.

          NOW, THEREFORE, based upon the foregoing Recitals, the mutual premises and agreements
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

Master Repurchase Agreement

(VFCC and Arbor)

 

 

ARTICLE I

DEFINITIONS

          Section 1.1 Certain Defined Terms.

          (a) Certain capitalized terms used throughout this Agreement are defined above or in this
Article I.

          (b) As used in this Agreement and the schedules, exhibits and other attachments hereto, unless
the context requires a different meaning, the following terms shall have the following meanings:

“40 Act”: Defined in Subsection 10.1(e) of this Agreement.

“450 Income”: Cash income received by ART and/or one or more of its Consolidated
Subsidiaries with respect to the 450 Transaction which is not recognized per GAAP, net of related
expenses.

“450 Transaction”: The Preferred Equity Interests of ART and/or one or more of its
Consolidated Subsidiaries in AT 450 I LLC and AT 450 II LLC.

“Accepted Servicing Practices”: With respect to any Mortgage Asset, those mortgage
servicing practices of prudent mortgage lending institutions that service Mortgage Assets of the
same type, size and structure as such Mortgage Asset in the jurisdiction where the related
Mortgaged Property is located, but in any event, in accordance with the terms of the Repurchase
Documents and without prejudice to the interests of the Deal Agent, the Purchaser or any other
Secured Party.

“Account Agreement”: A letter agreement, dated as of even date herewith, among the Seller,
the Deal Agent and Wachovia substantially in the form of Exhibit V attached hereto.

“Accrual Period”: (a) with respect to each Transaction (or portion thereof) funded at a
Rate other than the CP Rate (i) with respect to the first Payment Date, the period from and
including the Closing Date to but excluding such first Payment Date and (ii) with respect to any
subsequent Payment Date, the period from and including the previous Payment Date to but excluding
such subsequent Payment Date, and, (b) with respect to each Transaction (or portion thereof) funded
at a Rate equal to the CP Rate, (i) with respect to the first Payment Date, the period from and
including the Closing Date to and including the last day of the calendar month in which the Closing
Date occurs and (ii) with respect to any subsequent Payment Date, the period ending on the last day
of the calendar month immediately preceding the month in which the Payment Date occurs and
commencing on the first (1st) day of such immediately preceding calendar month.

“Additional Amount”: Defined in Subsection 2.14(a).

“Adjusted Eurodollar Rate”: For any Accrual Period, a rate per annum equal to a fraction,
expressed as a percentage and rounded upwards (if necessary) to the nearest 1/100 of 1%, (i) the
numerator of which is equal to the LIBOR Rate for such Accrual Period and (ii) the denominator of
which is equal to 100% minus the Eurodollar Reserve Percentage for such Accrual Period.

“Adjusted FFO”: For any period, an amount equal to (i) FFO plus (ii) to the extent
that any of the following amounts are deducted in the determination of Net Income (but not
otherwise), (a) the value of all Equity Interests paid by ART and its Consolidated Subsidiaries as
compensation and (b) the value of all Equity Interests paid by ART and its Consolidated
Subsidiaries as incentive management fees, in each

Master Repurchase Agreement

(VFCC and Arbor)

2

 

case with respect to clauses (i) and (ii) of this definition of Adjusted
FFO, determined in accordance with GAAP.

“Adjusted Tangible Net Worth”: Tangible Net Worth plus the aggregate principal
amount outstanding under the Eligible Subordinated Debt plus deferred revenues relating to
the 450 Transaction to the extent classified as a liability according to GAAP.

“Adjusted Total Liabilities”: Total Liabilities less the deferred revenues
relating to the 450 Transaction to the extent classified as a liability according to GAAP.

“Advance Rate”: With respect to a Mortgage Asset or Purchased Asset, as applicable, of a
certain Class, the “Maximum Advance Rate” set forth in the applicable column on Schedule 1
to the Fee Letter.

“Affected Party”: VFCC, the Swingline Purchaser, all other Purchasers, the Liquidity
Banks, the Deal Agent, the Liquidity Agent, the Custodian, any other Secured Party, all successors,
assignees, transferees, pledgees and participants of any of the foregoing and any successors to WCM
as the Deal Agent and any subagent of the Deal Agent.

“Affiliate”: With respect to a Person, means any other Person that, directly or
indirectly, controls, is controlled by or is under common control with such Person, or is a
director of such Person. For purposes of this definition, “control” (including the terms
“controlling,” “controlled by” and “under common control with”) when used with respect to any
specified Person means the possession, direct or indirect, of the power to vote 20% or more of the
voting securities of such Person or to direct or cause the direction of the management or policies
of such Person, whether through the ownership of voting securities, by contract or otherwise.

“Agent’s Account”: A special account for which the Deal Agent shall provide of same to the
Seller from time to time.

“Aggregate Unpaids”: At any time, an amount equal to the sum of the aggregate Purchase
Price outstanding for all Transactions, the aggregate Price Differential outstanding, Margin
Deficits outstanding, Breakage Costs, Increased Costs, Taxes, Additional Amounts, Late Payment
Fees, any fee due under any fee letter or the Repurchase Documents (including, without limitation,
the Fee Letter and the Custodial Fee Letter) and all other amounts owed by the Seller, the
Guarantor, the Pledgor or any other Person to the Deal Agent, the Purchaser, any Secured Party, any
Affected Party, any Indemnified Party or any other Person under this Agreement, the Repurchase
Documents or any of the Transactions entered into pursuant hereto or thereto and all interest
and/or fees that accrue after the commencement by or against any Repurchase Party or any Affiliate
thereof of any proceeding under any Insolvency Laws naming such Person as the debtor in such
proceeding, regardless of whether such interest and fees are allowed claims in such proceeding
(whether due or accrued).

“Agreement”: Defined in the Preamble of this Agreement.

“ALTA”: The American Land Title Association.

“Alternative Market Price Quote”: The good faith determination of the price at which a
Mortgage Asset could readily be sold by a bona fide third–party that (a) is not the Seller, the
Guarantor, the Pledgor or any Affiliate of the Seller, the Guarantor or the Pledgor, (b) regularly
engages in the business of buying and/or selling assets similar in type, size and structure as the
Purchased Assets and in the same jurisdiction as the related Underlying Mortgaged Property, and (c)
is familiar with the market for such Mortgage Assets.

Master Repurchase Agreement

(VFCC and Arbor)

3

 

“Alternative Rate”: A rate per annum equal to the Adjusted Eurodollar Rate;
provided, however, that the Alternative Rate shall be the Base Rate if a Eurodollar
Disruption Event occurs.

“Anti–Terrorism Laws”: Any Applicable Law relating to money laundering or terrorism,
including, but not limited to, Executive Order 13224, the OFAC Regulations and the USA Patriot Act.

“Applicable Law”: For any Person or Property of such Person, all existing and future
applicable laws, rules, regulations (including temporary and final income tax regulations),
statutes, treaties, codes, ordinances, permits, certificates, orders and licenses of and
interpretations by any Governmental Authority (including, without limitation, usury laws, the
Federal Truth in Lending Act, and Regulation Z and Regulation B of the Board of Governors of the
Federal Reserve System), and applicable judgments, decrees, injunctions, writs, awards or orders of
any court, arbitrator or other administrative, judicial or quasi–judicial tribunal or agency of
competent jurisdiction.

“Arbor Realty”: Defined in the Preamble of this Agreement.

“ARF”: Defined in the Preamble of this Agreement.

“ARSR”: Defined in the Preamble of this Agreement.

“ARSR Tahoe”: Defined in the Preamble of this Agreement.

“ART”: Defined in the Preamble of this Agreement.

“Asset Schedule and Exception Report”: Defined in the Custodial Agreement.

“Asset Tape”: Defined in Subsection 5.1(ii) of this Agreement.

“Asset Value”: As of any date of determination for each Eligible Asset or Purchased Asset,
as applicable, (a) other than with respect to a Bridge Loan, the lesser of (i) product of the Book
Value of such Mortgage Asset times the Advance Rate applicable thereto and (ii) the product
of the Market Value of such Mortgage Asset times the Advance Rate applicable thereto, in
each case, taking into account the Maximum LTV applicable thereto, and (b) in the case of a Bridge
Loan, the lesser of (i) the product of the Book Value of such Mortgage Asset times the
Advance Rate applicable thereto and (ii) the product of the Construction Costs of such Mortgage
Asset times the Advance Rate applicable thereto, in each case, taking into account the
Maximum LTC applicable thereto; provided, however, (i) the Asset Value of any
Eligible Mortgage Asset or Purchased Asset, as applicable, shall not include any portion of such
asset that exceeds one or more Sub–Limits applicable thereto at any time, unless waived in writing
by the Deal Agent in its discretion, and (ii) the Asset Value shall be deemed to be zero (0) for
each Mortgage Asset or Purchased Asset, as applicable, (whether such Mortgage Asset or Purchased
Asset, as applicable, is an existing Purchased Asset or a Mortgage Asset acquired in the future)
(A) in respect of which there is a breach of a representation and warranty set forth in
Schedule 1 (assuming each representation and warranty is made as of the date the Asset
Value is determined), (B) in respect of which the complete Mortgage Asset File has not been
delivered to the Custodian within the time period required by the Custodial Agreement, (C) which is
a Table Funded Purchased Asset or Swingline Purchase in respect of which the Mortgage Asset Files
have not been delivered to the Custodian within three (3) Business Days following the Purchase
Date, (D) that has been released from the possession of the Custodian under the Custodial Agreement
to the Seller for a period in excess of twenty (20) calendar days, (E) with respect to which the
Seller has failed to repurchase such Purchased Asset by the applicable Repurchase Date, (F) to the
extent described in Subsection 2.2(l) or (G) the failure of any Preferred Equity Grantor
(or the Seller on its behalf) to satisfy the requirements of the second to the last sentence of
Subsection 5.1(aaa).

Master Repurchase Agreement

(VFCC and Arbor)

4

 

“Assignment”: The transfer of all of the Seller’s rights and interests under an Eligible
Asset pursuant to an assignment executed by the Seller in blank, which assignment shall be in the
form of Exhibit XIII and shall be otherwise satisfactory to the Deal Agent in its
discretion.

“Assignment of Leases”: With respect to any Mortgage, an assignment of leases thereunder,
notice of transfer or equivalent instrument in recordable form, sufficient under the laws of the
jurisdiction wherein the Underlying Mortgaged Property is located to reflect the assignment of
leases to the Deal Agent as agent for the Secured Parties.

“Assignment of Mortgage”: With respect to any Mortgage, an assignment of the Mortgage,
notice of transfer or equivalent instrument in recordable form, sufficient under the laws of the
jurisdiction wherein the related Mortgaged Property is located to reflect the assignment of the
Mortgage to the Deal Agent as agent for the Secured Parties.

“Authority Documents”: As to any Person, the articles or certificate of incorporation or
formation, by–laws, limited liability company agreement, general partnership agreement, limited
partnership agreement, trust agreement, joint venture agreement, resolutions and other applicable
organizational or governing documents of such Person.

“Availability”: At any time, an amount equal to the positive excess (if any) of (a) the
Maximum Amount minus (b) the aggregate Purchase Price outstanding for all Transactions on
such day; provided, however, on and after the occurrence of the Facility Maturity
Date (not including any extensions thereof) or an Event of Default, the Availability shall be zero
(0).

“Bailee”: With respect to each Table Funded Purchased Asset or Swingline Purchase, the
related title company or other settlement agent, in each case, approved in writing by the Deal
Agent in its sole discretion.

“Bailee Agreement”: The Bailee Agreement among the Seller, the Deal Agent and the Bailee
in the form of Annex 13 to the Custodial Agreement.

“Bailee’s Trust Receipt”: A Trust Receipt in the form of Attachment 2 to the
Bailee Agreement.

“Bank Repurchase Facility”: That certain facility evidenced by, among other agreements,
the First Amended and Restated Loan Purchase and Repurchase Facility, dated as of July 12, 2004,
among the Sellers, Wachovia and the Guarantors, as such agreements are amended, modified, restated,
replaced, waived, substituted, supplemented or extended from time to time.

“Bankruptcy Code”: The United States Bankruptcy Reform Act of 1978 (11 U.S.C. § 101, et
seq.), as amended from time to time.

“Base Rate”: On any date, a fluctuating rate per annum equal to the lower of (a) the Prime
Rate or (b) the Federal Funds Rate plus 0.5%.

“Basic Mortgage Asset Documents”: Defined in the Custodial Agreement.

“Benefit Plan”: Any employee benefit plan as defined in Section 3(3) of ERISA in respect
of which the Seller or the Guarantor or any ERISA Affiliate of the Seller or the Guarantor is, or
at any time during the immediately preceding six (6) years was, an “employer” as defined in Section
3(5) of ERISA.

Master Repurchase Agreement

(VFCC and Arbor)

5

 

“Book Value”: With respect to any Mortgage Asset at any time, an amount, as certified by
the Seller, equal to the lesser of (a) face or par value and (b) the price that the Seller
initially paid or advanced for or in respect of such Mortgage Asset, as such Book Value may be
marked down by the Seller from time to time, including, as applicable, any loss/price adjustments,
less an amount equal to the sum of all principal payments or paydowns paid and realized
losses recognized relating to such Mortgage Asset.

“Borrower”: Defined in the Custodial Agreement.

“Borrower Reserve Payments”: Any payments made by a Borrower under the applicable Mortgage
Loan Documents which, pursuant to the terms of such Mortgage Loan Documents, are required to be
deposited into escrow or into a reserve to be used for a specific purpose (e.g., tax and insurance
escrows), excluding, however, the Homewood Interest Reserve.

“Breakage Costs”: Any amount or amounts as shall compensate the Purchaser and any other
Secured Party for any loss, cost or expense incurred by the Purchaser and any other Secured Party
(as determined by the Deal Agent in the Deal Agent’s good faith discretion) as a result of an early
repurchase or prepayment of the Repurchase Price or any Price Differential. All Breakage Costs
shall be due and payable hereunder upon demand. Breakage Costs shall not be due for payments of
the Repurchase Price or any Price Differential on a Payment Date, on the Facility Maturity Date or
in connection with any scheduled amortization provided at least two (2) Business Days advance
notice (to be received by the Deal Agent no later than 3:00 p.m. two (2) Business Days prior to the
repayment date) is given to the Deal Agent.

“Bridge Loan”: A Whole Loan, Junior Interest or Mezzanine Loan that is otherwise an
Eligible Asset except that the Underlying Mortgaged Property is not stabilized, the Underlying
Mortgaged Property is being repositioned, or the asset possesses one or more characteristics that
prevent it from being an Eligible Asset, which exceptions shall be disclosed to and be acceptable
to the Deal Agent in its discretion. A Bridge Loan may not include an interest in a Preferred
Equity Interest. Unless waived in writing by the Deal Agent in its discretion, a Bridge Loan must
satisfy all of the terms and conditions contained in the Agreement (other than those eligibility
criteria waived in accordance with the first sentence of this definition) that are applicable to
Whole Loans, Junior Interests and Mezzanine Loans, as applicable.

“Business Day”: Any day other than a Saturday or a Sunday on which (a) banks are not
required or authorized to be closed in Minneapolis, Minnesota, New York, New York or Charlotte,
North Carolina, and (b) if the term “Business Day” is used in connection with the determination of
the LIBOR Rate, dealings in United States dollar deposits are carried on in the London interbank
market.

“Capital Lease Obligations”: For any Person and its Consolidated Subsidiaries, all
obligations of such Person to pay rent or other amounts under a lease of (or other agreement
conveying the right to use) Property to the extent such obligations are required to be classified
and accounted for as a capital lease on a balance sheet of such Person under GAAP, and, for
purposes of this Agreement, the amount of such obligations shall be the capitalized amount thereof,
determined in accordance with GAAP.

“Cash Collateral”: The cash received by the Deal Agent as agent for the Secured Parties in
satisfaction of a Margin Deficit or as Income on Purchased Assets.

“Cash Equivalents”: As to any Person, (i) securities issued or directly and fully
guaranteed or insured by the United States or any agency or instrumentality thereof (provided that
the full faith and credit of the United States is pledged in support thereof) having maturities of
not more than one year from the date of acquisition, (ii) time deposits or certificates of deposit
of any commercial bank incorporated under the

Master Repurchase Agreement

(VFCC and Arbor)

6

 

laws of the United States or any state thereof, of recognized standing having capital and
unimpaired surplus in excess of $1,000,000,000 and whose short–term commercial paper rating at the
time of acquisition is at least A–1 or the equivalent thereof by S&P or at least P–1 or the
equivalent thereof by Moody’s (any such bank, an “Approved Bank”), with such deposits or
certificates having maturities of not more than one year from the date of acquisition, (iii)
repurchase obligations with a term of not more than seven days for underlying securities of the
types described in clauses (i) and (ii) above entered into with any Approved Bank,
(iv) commercial paper or finance company paper issued by any Person incorporated under the laws of
the United States or any state thereof and rated at least A–1 or the equivalent thereof by S&P or
at least P–1 or the equivalent thereof by Moody’s, and in each case maturing not more than one year
after the date of acquisition, and (v) investments in money market funds that are registered under
the Investment Company Act of 1940, which have net assets of at least $1,000,000,000 and at least
85% of whose assets consist of securities and other obligations of the type described in
clauses (i) through (iv) above. All such Cash Equivalents must be denominated
solely for payment in Dollars.

“CDO Issuance”: Any securitization transaction involving the issuance of collateralized
debt obligations.

“CDO Issuer”: The issuer of securities in a CDO Issuance.

“CDO Subsidiary”: Each of ARMS 2006-1 Equity Holdings LLC, ARMS 2005–1 Equity Holdings
LLC, ARMS 2004–1 Equity Holdings LLC and, after the date hereof, any other Subsidiary of ARSR that
holds Equity Interests in a CDO Issuer in connection with a CDO and is otherwise approved by the
Deal Agent in its discretion.

“Class”: With respect to a Mortgage Asset, such Mortgage Asset’s classification as a Whole
Loan, a Junior Interest, a Mezzanine Loan, a Preferred Equity Interest, a Bridge Loan, a
Condominium Loan or a Land Loan (and, with respect to each Bridge Loan, Condominium Loan or Land
Loan, its sub–classification as a Whole Loan, Junior Interest Loan or Mezzanine Loan, as
applicable).

“Closing Date”: March 30, 2007.

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

“Collection Account”: The account set forth on Schedule 3 established by the
Seller in the name of the Seller and subject to an Account Agreement, into which all Income and
Cash Collateral shall be deposited. Funds in the Collection Account may be invested at the
direction of the Deal Agent in Permitted Investments.

“Commercial Paper Notes”: On any day, any short–term promissory notes issued in the
commercial paper market.

“Commercial Real Estate”: Any real estate included in the definition of Type.

“Commercial Real Estate Loan”: Any loan secured directly or indirectly by Commercial Real
Estate or, as applicable, ownership interests in an entity that owns directly or indirectly
Commercial Real Estate.

“Commitment Fee”: Defined in the Fee Letter.

“Compliance Certificate”: Defined in Subsection 3.2(e) of this Agreement.

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“Condominium Loan”: A Mortgage Asset (other than a Bridge Loan or a Preferred Equity
Interest) the Underlying Mortgaged Property for which is owned, is in the process of being
converted to be owned or is otherwise expected to be owned, in whole or in part, by a condominium
form of ownership. Condominium Loans are not Eligible Assets unless deemed so by the Purchaser on
a case–by–case basis.

“Confirmation”: Defined in Subsection 2.2(c) of this Agreement.

“Consolidated Subsidiaries”: As of any date, any Subsidiaries or other entities that are
consolidated with ART in accordance with GAAP.

“Construction Costs”: With respect to a Mortgage Asset or Purchased Asset, as applicable,
that is a Bridge Loan, as of any date of determination, the reasonable hard and soft costs of
proposed construction of the improvements on the Underlying Mortgaged Property, which reasonable
costs shall be disclosed to and approved by the Purchaser in its discretion, plus the
market value of the related Underlying Mortgaged Property at such time, as determined by the
Purchaser in its discretion based on such sources of information as the Purchaser may determine to
rely on in its discretion.

“Contingent Liabilities”: Means, with respect to any Person and its Consolidated
Subsidiaries (without duplication): (i) liabilities and obligations (including any Guarantee
Obligations) of such Person, any Consolidated Subsidiary or any other Person in respect of
“off–balance sheet arrangements” (as defined in the SEC Off–Balance Sheet Rules), (ii) any
obligation, including, without limitation, any Guarantee Obligation, whether or not required to be
disclosed in the footnotes to such Person’s financial statements, guaranteeing partially or in
whole any Non–Recourse Indebtedness, lease, dividend or other obligation, exclusive of contractual
indemnities (including, without limitation, any indemnity or price–adjustment provision relating to
the purchase or sale of securities or other assets) and guarantees of non–monetary obligations
(other than guarantees of completion, environmental indemnities and guarantees of customary
carve–out matters made in connection with Non–Recourse Indebtedness, such as (but not limited to)
fraud, misappropriation, bankruptcy and misapplication) which have not yet been called on or
quantified, of such Person or of any other Person, and (iii) any forward commitment or obligation
to fund or provide proceeds with respect to any loan or other financing which is obligatory and
non–discretionary on the part of the lender. The amount of any Contingent Liabilities described in
clause (ii) shall be deemed to be, (a) with respect to a guarantee of interest or interest
and principal, or operating income guarantee, the sum of all payments required to be made
thereunder (which, in the case of an operating income guarantee, shall be deemed to be equal to the
debt service for the note secured thereby), through, (x) in the case of an interest or interest and
principal guarantee, the stated date of maturity of the obligation (and commencing on the date
interest could first be payable thereunder), or (y) in the case of an operating income guarantee,
the date through which such guarantee will remain in effect, and (b) with respect to all guarantees
not covered by the preceding clause (a), an amount equal to the stated or determinable
amount of the primary obligation in respect of which such guarantee is made or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person
is required to perform thereunder) as recorded on the balance sheet and on the footnotes to the
most recent financial statements of such Person. As used in this definition, the term “SEC
Off–Balance Sheet Rules” means the Disclosure in Management’s Discussion and Analysis About
Off–Balance Sheet Arrangements and Aggregate Contractual Obligations, Securities Act Release Nos.
33–8182; 34-47264; FR-67 International Series Release No. 1266 File No. S7-42-02, 68 Fed. Reg. 5982
(Feb. 5, 2003) (codified at 17 CFR pts. 228, 229 and 249).

“Contractual Obligation”: With respect to any Person, any provision of any securities
issued by such Person or any indenture, mortgage, deed of trust, contract, undertaking, agreement,
instrument or other document to which such Person is a party or by which it or any of its Property
is bound or is subject.

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“Co–Seller”: Each seller of a Preferred Equity Interest that joins this Agreement as a
Seller by executing a Joinder Agreement.

“CP Rate”: For any day during any Accrual Period, the per annum rate equivalent to the
weighted average of the per annum rates paid or payable by VFCC from time to time as interest on or
otherwise (by means of interest rate hedges or otherwise taking into consideration any incremental
carrying costs associated with short–term promissory notes issued by VFCC maturing on dates other
than those certain dates on which VFCC is to receive funds) in respect of the promissory notes
issued by VFCC that are allocated, in whole or in part, by the Deal Agent (on behalf of VFCC) to
fund or maintain the Transactions funded by VFCC during such period, as determined by the Deal
Agent (on behalf of VFCC) and reported to the Seller, which rates shall reflect and give effect to
(i) the commissions of placement agents and dealers in respect of such promissory notes, to the
extent such commissions are allocated, in whole or in part, to such promissory notes by the Deal
Agent (on behalf of VFCC) and (ii) other borrowings by VFCC, including, without limitation,
borrowings to fund small or odd dollar amounts that are not easily accommodated in the commercial
paper market; provided, however, that if any component of such rate is a discount
rate, in calculating the CP Rate, the Deal Agent shall for such component use the rate resulting
from converting such discount rate to an interest bearing equivalent rate per annum.

“Custodial Agreement”: That Custodial Agreement, dated as of even date herewith, by and
among the Deal Agent, the Purchaser, the Seller and the Custodian, as the same shall be amended,
modified, waived, supplemented, extended, replaced or restated from time to time.

“Custodial Fee Letter”: The Custodial Fee Letter between the Seller and the Custodian, as
such letter may be amended, modified, waived, supplemented, extended, restated or replaced from
time to time.

“Custodial Identification Certificate”: Defined in the Custodial Agreement.

“Custodian”: Wells Fargo Bank, National Association, and its successor in interest as the
custodian under the Custodial Agreement, and any successor Custodian under the Custodial Agreement.

“Deal Agent”: Defined in the Preamble of this Agreement.

“Deal Agent’s Account”: The account of the Purchaser identified in Schedule 3
attached hereto.

“Debt Service”: For any period, the sum of (a) Interest Expense of ART and its
Consolidated Subsidiaries determined on a consolidated basis for such period and (b) all regularly
scheduled principal payments made with respect to Indebtedness of ART and its Consolidated
Subsidiaries during such period, other than any balloon, bullet, margin or similar principal
payment which repays such Indebtedness in full.

“Debt Service Coverage Ratio” or “DSCR”: With respect to any Mortgage Asset or
Purchased Asset, as applicable, as of any date of determination, for the period of time to be
determined in the Deal Agent’s sole discretion (it being understood that it is the Deal Agent’s
intent to make the determination based on the period of twelve (12) consecutive complete calendar
months preceding such date (or, if such Mortgage Asset was originated less than twelve (12) months
from the date of determination, the number of months from the date of origination)), the ratio of
(a) the aggregate Net Cash Flow in respect of the Underlying Mortgaged Properties relating to such
Mortgage Asset for such period (including, in the case of Bridge Loans and, as applicable,
Construction Loans and Land Loans, interest reserves held by the Seller or a Servicer with respect
to such asset, to (b) the sum of (i) the aggregate amount of all amounts due for such
period in respect of all Indebtedness that was outstanding from time to time during such period
that is secured, directly or indirectly, by such Underlying Mortgaged Properties (including,
without

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limitation, by way of a pledge of the equity of the owner(s) of such Underlying Mortgaged
Properties) or that is otherwise owing by the owner(s) of such Underlying Mortgaged Properties,
including, without limitation, all scheduled principal and/or interest payments due for such period
in respect of each Mortgage Asset that is secured or supported by such Underlying Mortgaged
Properties plus (ii) the amount of all Ground Lease payments to be made in respect of such
Underlying Mortgaged Properties during such period, as any of the foregoing elements of DSCR may be
adjusted by the Deal Agent as determined by the Deal Agent in its discretion; provided,
however, that all such calculations shall be made taking into account any senior or pari
passu debt secured directly or indirectly by the applicable Underlying Mortgaged Property.

“Default”: Any event that, with the giving of notice or the lapse of time, or both, would
become an Event of Default.

“Defaulted Mortgage Asset”: Any Mortgage Asset (a) that is ninety (90) days or more
delinquent, (b) for which there is a breach of any of the representations and warranties set forth
on Schedule 1 hereto, or (c) for which there is a non–monetary default (beyond any
applicable notice and cure period) under the related Mortgage Loan Documents, including, without
limitation, any Preferred Equity Interest that has not been paid current during such period.

“Delinquent Mortgage Asset”: A Mortgage Asset that is thirty (30) or more days, but less
than ninety (90) days, delinquent under the related Mortgage Loan Documents, including, without
limitation, any Preferred Equity Interest that has not been paid current during such period.

“Derivatives Contract”: Any and all rate swap transactions, basis swaps, credit derivative
transactions, forward rate transactions, commodity swaps, commodity options, forward commodity
contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or
options or forward bond or forward bond price or forward bond index transactions, interest rate
options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross–currency rate swap transactions, currency options,
spot contracts, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement. Not in limitation of the foregoing, the term
“Derivatives Contract” includes any and all transactions of any kind, and the related
confirmations, which are subject to the terms and conditions of, or governed by, any form of master
agreement published by the International Swaps and Derivatives Association, Inc., any International
Foreign Exchange Master Agreement, or any other master agreement, including any such obligations or
liabilities under any such master agreement.

“Derivatives Termination Value”: Means, in respect of any one or more Derivatives
Contracts, after taking into account the effect of any legally enforceable netting agreement
relating to such Derivatives Contracts, (a) for any date on or after the date such Derivatives
Contracts have been closed out and termination value(s) determined in accordance therewith, such
termination value(s), and (b) for any date prior to the date referenced in clause (a), the
amount(s) determined as the mark–to–market value(s) for such Derivatives Contracts, as determined
based upon one or more mid–market or other readily available quotations provided by any recognized
dealer in such Derivatives Contracts (which may include the Deal Agent, the Purchaser or any of the
Secured Parties).

“Dollars” and “$”: Lawful money of the United States of America.

“Due Diligence Costs”: Defined in Section 13.21 of this Agreement.

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“Due Diligence Review”: The performance by the Deal Agent of any or all of the reviews
permitted under Section 13.21 with respect to any or all of the Purchased Items, as desired
by the Deal Agent from time to time.

“EBITDA”: With respect to ART and its Subsidiaries for any period, the net income (or
loss) of ART and its Subsidiaries for such period determined on a consolidated basis (prior to any
impact from minority interests and before deduction of preferred dividends on preferred stock, if
any, of ART), in accordance with GAAP, plus the following (but only to the extent actually
included in determination of such net income (loss)): (i) income tax expense; (ii) extraordinary
or non–recurring gains and losses; (iii) depreciation and amortization expense; (iv) interest
expense; and (v) amounts deducted in accordance with GAAP in respect of other non-cash expenses in
determining such net income. The EBITDA will be adjusted to remove all impact of FAS 141.

“Electronic Transmission”: The delivery of information and executed documents in an
electronic format acceptable to the applicable recipient thereof.

“Eligible Asset”: A Mortgage Asset that as of any date of determination:

          (a) is not a Defaulted Mortgage Asset or Delinquent Mortgage Asset;

          (b) with respect to the portion of such Mortgage Asset to be acquired by the Purchaser, the
funding obligations have been satisfied in full and there is no unfunded commitment with respect
thereto;

          (c) has been approved in writing by the Deal Agent in its discretion;

          (d) has an LTV not in excess of the Maximum LTV, and, with respect to Bridge Loans, an LTC not
in excess of the Maximum LTC;

          (e) has a DSCR equal to or greater than the Minimum DSCR;

          (f) is not a construction loan; provided, however, the Deal Agent may, in its
discretion, waive this restriction on a case–by–case basis and purchase one (1) or more Condominium
Loans or Land Loans that are construction loans provided each such Mortgage Asset otherwise
satisfies the definition of Eligible Asset and the other requirements of the Repurchase Documents,
and such Mortgage Asset and the Seller satisfies such other terms, conditions or requirements as
the Deal Agent may require in its discretion, such requirements to be set forth in the related
Confirmation;

          (g) is not a loan to an operating business (other than a hotel); and

          (h) the purchase of such Eligible Asset will not violate any applicable Sub–Limit.

provided, however, notwithstanding a Mortgage Asset’s failure to conform to the
criteria set forth above, the Deal Agent may, in its discretion, designate in writing any such
non–compliant Mortgage Asset as an Eligible Asset, which may include a temporary or permanent
waiver of one (1) or more Eligible Asset requirements.

“Eligible Subordinated Debt”: Means (i) the debt securities of ARSR issued under (a) the
Junior Subordinated Indenture, dated as of March 15, 2005, between ARSR, as issuer, and JPMorgan
Chase, N.A., as trustee, (b) the Junior Subordinated Indenture, dated as of April 1, 2005, between
ARSR, as issuer, and JPMorgan Chase, N.A., as trustee, (c) the Junior Subordinated Indenture, dated
as of April 6, 2005, between ARSR, as issuer, ART, as guarantor, and Wilmington Trust Company, as
trustee, (d) the

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Amended and Restated Junior Subordinated Indenture, dated as of August 26, 2005, between ARSR, as
issuer, and Wells Fargo Bank, N.A., as trustee, (e) the Junior Subordinated Indenture, dated as of
December 8, 2005, between ARSR, as issuer, and JPMorgan Chase, N.A., as trustee, (f) the Junior
Subordinated Indenture, dated as of May 16, 2006, between ARSR, as issuer, and JPMorgan Chase,
N.A., as trustee, (g) the Junior Subordinated Indenture, dated as of June 2, 2006, between ARSR, as
issuer, ART, as guarantor, and Wilmington Trust Company, as trustee, and (h) an additional $50
million of future trust preferred indebtedness of ART and its Consolidated Subsidiaries which ART
and its Consolidated Subsidiaries is intending to issue within the next 90 days, provided such
indebtedness satisfies the conditions set forth in subclauses (ii)(a) through (d)
of this definition; and (ii) any future trust preferred indebtedness of ART and its Consolidated
Subsidiaries that (a) has express subordination provisions substantially the same as those in the
indentures for the transactions listed in clause (i) of this definition of Eligible
Subordinated Debt, (b) has enforceable subordination provisions, (c) has a maturity date no earlier
than the date that is six (6) months following the Facility Maturity Date (including any potential
extensions thereof), (d) the Deal Agent is in receipt of an in–house Opinion of Counsel acceptable
to the Deal Agent in its discretion addressing the enforceability of the subordination provisions
contained in the documents governing the proposed Eligible Subordinated Debt and (e) has been
specifically approved in writing by the Deal Agent in its discretion.

“Environmental Laws”: Any and all Applicable Laws and all other foreign, federal, state
and local laws, statutes, ordinances, rules, regulations, permits, licenses, approvals,
interpretations and orders of courts or Governmental Authorities, relating to the protection of
human health or the environment, including, but not limited to, requirements pertaining to the
manufacture, processing, distribution, use, treatment, storage, disposal, transportation, handling,
reporting, licensing, permitting, investigation or remediation of hazardous materials.
Environmental Laws include, without limitation, the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 (“CERCLA”), as amended by the Superfund Amendments
and Reauthorization Act of 1986, 42 U.S.C. §9601 et seq., the Solid Waste Disposal
Act, as amended by the Resource Conservation and Recovery Act of 1976, as amended by the Hazardous
and Solid Waste Amendments of 1984, 42 U.S.C. §6901 et seq., the Hazardous Material
Transportation Act, as amended, 49 U.S.C. §1501 et seq., the Federal Water Pollution
Control Act, as amended by the Clean Water Act of 1977, 33 U.S.C. §1251 et seq.,
the Clean Air Act (42 U.S.C. § 7401 et seq.), the Toxic Substances Control Act of
1976, 15 U.S.C. §2601 et seq., the Emergency Planning and Community Right–to–Know
Act of 1986, 42 U.S.C. §1101 et seq., the Clean Air Act of 1966, as amended, 42 U.
S. C. §7401 et seq., the National Environmental Policy Act of 1969, 42 U.S.C.
§4321, the River and Harbor Act of 1899, 33 U.S.C. §401 et seq., the Endangered
Species Act of 1973, as amended, 16 U.S.C. §1531 et seq., the Occupational Safety
and Health Act of 1970, as amended, 29 U.S.C. §651 et seq., the Safe Drinking Water
Act of 1974, as amended, 42 U.S.C. §201 et seq., and the Environmental Protection
Agency’s regulations relating to underground storage tanks, 40 C.F.R. Parts 280 and 281, and the
rules and regulations under each of the foregoing, each as amended, modified, waived, supplemented,
extended, restated or replaced from time to time.

“Equity Interest”: With respect to any Person, any share, interest, participation and
other equivalent (however denominated) of capital stock of (or other ownership, equity or profit
interests in) such Person, any warrant, option or other right for the purchase or other acquisition
from such Person of any share of capital stock of (or other ownership, equity or profit interests
in) such Person, any security convertible into or exchangeable for any share of capital stock of
(or other ownership, equity or profit interests in) such Person or warrant, right or option for the
purchase or other acquisition from such Person of such shares (or such other interests), and any
other ownership or profit interest in such Person (including, without limitation, partnership,
member or trust interests therein), whether voting or nonvoting, and whether or not such share,
warrant, option, right or other interest is authorized or otherwise existing on any date of
determination.

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“ERISA”: The Employee Retirement Income Security Act of 1974, as amended from time to
time, and the regulations promulgated and rulings issued thereunder, as the same are amended from
time to time.

“ERISA Affiliate”: (a) Any corporation that is a member of the same controlled group of
corporations (within the meaning of Section 414(b) of the Code) as the Seller or the Guarantor, (b)
a trade or business (whether or not incorporated) under common control (within the meaning of
Section 414(c) of the Code) with the Seller or the Guarantor, or (c) a member of the same
affiliated service group (within the meaning of Section 414(m) of the Code) as the Seller, the
Guarantor, any corporation described in clause (a) above or any trade or business described
in clause (b) above.

“Eurocurrency Liabilities”: Defined in Regulation D of the Board of Governors of the
Federal Reserve System, as in effect from time to time.

“Eurodollar Disruption Event”: The occurrence of any of the following: (a) any Liquidity
Bank or the Swingline Purchaser shall have notified the Deal Agent of a determination by such
Liquidity Bank, the Swingline Purchaser or any of their assignees or participants that it would be
contrary to law or to the directive of any central bank or other Governmental Authority (whether or
not having the force of law) to obtain United States dollars in the London interbank market to fund
any Transaction, (b) any Liquidity Bank or the Swingline Purchaser shall have notified the Deal
Agent of the inability, for any reason, of such Liquidity Bank, the Swingline Purchaser or any of
their assignees or participants to determine the Adjusted Eurodollar Rate, (c) any Liquidity Bank
or the Swingline Purchaser shall have notified the Deal Agent of a determination by such Liquidity
Bank, the Swingline Purchaser or any of their assignees or participants that the rate at which
deposits of United States dollars are being offered to such Liquidity Bank, the Swingline Purchaser
or any of their assignees or participants in the London interbank market does not accurately
reflect the cost to such Liquidity Bank, the Swingline Purchaser, such assignee or such participant
of making, funding or maintaining any Transaction, or (d) any Liquidity Bank or the Swingline
Purchaser shall have notified the Deal Agent of the inability of such Liquidity Bank, the Swingline
Purchaser or any of their assignees or participants to obtain United States dollars in the London
interbank market to make, fund or maintain any Transaction.

“Eurodollar Reserve Percentage”: For any period means the percentage, if any, applicable
during such period (or, if more than one such percentage shall be so applicable, the daily average
of such percentages for those days in such period during which any such percentage shall be so
applicable) under regulations issued from time to time by the Board of Governors of the Federal
Reserve System (or any successor) for determining the maximum reserve requirement (including,
without limitation, any basic, emergency, supplemental, marginal or other reserve requirements)
with respect to liabilities or assets consisting of or including Eurocurrency Liabilities having a
term of one (1) month.

“Event of Default”: Defined in Section 10.1 of this Agreement.

“Excepted Persons”: Defined in Subsection 13.13(a) of this Agreement.

“Exception”: Defined in the Custodial Agreement.

“Excess Margin”: Defined in Subsection 2.6(a) of this Agreement.

“Exchange Act”: The Securities Exchange Act of 1934, as amended, modified, waived,
supplemented, extended, restated or replaced from time to time.

“Executive Order”: Defined in Subsection 4.1(s) of this Agreement.

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“Existing Financing Facilities”: The financing facilities identified on Schedule 5
hereto.

“Extended Funding Expiration Date”: Defined in Subsection 2.4(b) of this
Agreement.

“Extension Fee”: Defined in Subsection 2.4(a) of this Agreement.

“Extension Fee Payment Date”: Defined in Subsection 2.4(a) of this Agreement.

“Facility Maturity Date”: Subject to Article X, the earlier of (a) March 28, 2010,
as such original Facility Maturity Date may be extended pursuant to Subsection 2.4(a)
hereof, (b) the date on which the Liquidity Agreement terminates, expires or is unavailable and (c)
the date on which this Agreement shall terminate in accordance with the provisions hereof or by
operation of Applicable Law.

“Facility Period”: The period commencing on the Closing Date and terminating on the
Funding Expiration Date.

“FDIA”: Defined in Subsection 13.20(b) of this Agreement.

“FDICIA”: Defined in Subsection 13.20(c) of this Agreement.

“Federal Funds Rate”: For any period, a fluctuating interest rate per annum equal for each
day during such period to the weighted average of the overnight federal funds rates as in Federal
Reserve Board Statistical Release H.15(519) or any successor or substitute publication selected by
the Deal Agent (or, if such day is not a Business Day, for the next succeeding Business Day), or,
if, for any reason, such rate is not available on any day, the rate determined, in the sole opinion
of the Deal Agent, to be the rate at which overnight federal funds are being offered in the
national federal funds market at 9:00 a.m. Charlotte, North Carolina time.

“Fee Letter”: The Fee Letter, dated as of even date herewith, between the Deal Agent, the
Purchaser and the Seller, as amended, modified, waived, supplemented, extended, restated or
replaced from time to time.

“FFO”: For any given period, (a) Net Income of ART and its Consolidated Subsidiaries for
such period (before extraordinary and non–recurring items), minus (or plus) (b)
gains (or losses) from debt restructuring and sales of property during such period, plus
(c) depreciation and amortization of real and personal property assets for such period,
plus (d) without duplication, income from unconsolidated partnerships and joint ventures,
determined in each case in accordance with GAAP.

“Final Maturity Date”: Defined in Subsection 2.4(a) of this Agreement.

“Financial Covenants”: The covenants set forth in Subsections 5.1(bb)–(dd) and
(ff)–(hh).

“FIRREA Appraisal”: An appraisal prepared by an independent third–party appraiser approved
in writing by the Deal Agent in its reasonable discretion and satisfying the requirements of Title
XI of the Federal Institutions, Reform, Recovery and Enforcement Act of 1989 (as supplemented,
amended, modified and replaced from time to time) and the regulations promulgated thereunder, as in
effect on the date of such appraisal.

“Fitch”: Fitch Ratings, Inc.

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“Fixed Charge Coverage Ratio”: For ART and its Subsidiaries during any period, (a) the sum
of EBITDA plus 450 Income for such period (without duplication), divided by (b) the Fixed
Charges for the same period.

“Fixed Charges”: For ART and its Consolidated Subsidiaries during any period, the sum of
(without duplication) (a) Debt Service, (b) all Preferred Dividends required to be paid during such
period, (c) Capital Lease Obligations required to be paid during such period, and (d) all payments
due under any ground lease.

“Foreclosed Loan”: A loan the security for which has been foreclosed upon by the Seller.

“Funding Expiration Date”: Subject to Article X, the earliest of (i) March 28,
2008, as such date may be extended pursuant to Subsection 2.4(b) of this Agreement, (ii)
the date on which the Liquidity Agreement terminates, expires or is unavailable, and (iii) the date
on which the Funding Expiration Date shall occur in accordance with the provisions hereof or by
operation of Applicable Law.

“GAAP”: Generally accepted accounting principles as in effect from time to time in the
United States, consistently applied.

“Governmental Authority”: Any nation or government, any state or other political
subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any
body or entity exercising executive, legislative, judicial, regulatory or administrative functions
of or pertaining to government, any court or arbitrator having jurisdiction over such Person, any
of its Subsidiaries or any of its Properties, and any accounting board or authority (whether or not
a part of government) that is responsible for the establishment or interpretation of national or
international accounting principles, in each case whether foreign or domestic.

“Ground Lease”: With respect to any Commercial Real Estate Loan for which the Borrower has
a leasehold interest in the related Mortgaged Property or space lease within such Mortgaged
Property, the lease agreement creating such leasehold interest.

“Guarantee Obligation”: Means, as to any Person (the “guaranteeing person”),
without duplication, any obligation of (a) the guaranteeing person or (b) another Person
(including, without limitation, any bank under any letter of credit) to induce the creation of the
obligations for which the guaranteeing person has issued a reimbursement, counterindemnity or
similar obligation, in either case guaranteeing or in effect guaranteeing any Indebtedness, leases,
dividends, Contractual Obligation, Derivatives Contract or other obligations (the “primary
obligations”) of any other third Person (the “primary obligor”) in any manner, whether
directly or indirectly, including, without limitation, any obligation of the guaranteeing person,
whether or not contingent, (i) to purchase any such primary obligation or any property constituting
direct or indirect security therefor, (ii) to advance or supply funds (1) for the purchase or
payment of any such primary obligation or (2) to maintain working capital or equity capital of the
primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to
purchase property, securities or services primarily for the purpose of assuring the owner of any
such primary obligation of the ability of the primary obligor to make payment of such primary
obligation or (iv) otherwise to assure or hold harmless the owner of any such primary obligation
against loss in respect thereof; provided, however, that the term Guarantee
Obligation shall not include endorsements of instruments for deposit or collection in the ordinary
course of business. The amount of any Guarantee Obligation of any guaranteeing person shall be
deemed to be the maximum stated amount of the primary obligation relating to such Guarantee
Obligation (or, if less, the maximum stated liability set forth in the instrument embodying such
Guarantee Obligation); provided, however, that in the absence of any such stated
amount or stated liability, the

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amount of such Guarantee Obligation shall be such guaranteeing person’s maximum reasonably
anticipated liability in respect thereof as reasonably determined by such Person in good faith.

“Guarantor”: Individually and collectively, ART, Arbor Realty and ARSR, as joint and
several guarantors under the Guaranty.

“Guaranty”: The Guaranty, dated as of even date herewith, executed by the Guarantors in
favor of the Deal Agent as agent for the Secured Parties, the Purchaser and the other Secured
Parties, as amended, modified, waived, supplemented, extended, restated or replaced from time to
time.

“H.15”: Federal Reserve Statistical Release H.15.

“Homewood Account Control Agreement”: An executed account control agreement granting
control over the Homewood Interest Reserve identified therein to the Deal Agent as agent for the
Secured Parties, as amended, modified, restated, replaced, waived, substituted, supplemented or
extended from time to time.

“Homewood Interest Reserve”: The account maintained at Wachovia identified in the Account
Agreement into which the interest reserve for the senior mortgage loan under the Homewood Purchased
Asset shall be held. The terms and provisions governing the Purchaser’s withdrawal of funds from
the Homewood Interest Reserve and the payment thereof shall be set forth in the Confirmation for
the Homewood Purchased Asset; provided, however, (i) no amounts withdrawn from the
Homewood Interest Reserve shall be paid to the Seller after an Event of Default and (ii) after an
event of default under the Mortgage Loan Documents for the Homewood Purchased Asset, and subject to
the terms of the Mortgage Loan Documents for the Homewood Purchased Asset, the Purchaser shall be
entitled to withdraw all of the funds in the Homewood Interest Reserve and apply such funds to the
outstanding Purchase Price for the Homewood Purchased Asset and any other Obligations.

“Homewood Purchased Asset”: The senior mortgage Whole Loan referred to as Homewood Village
Resorts in Placer County, California, which is to be purchased by the Purchaser or its designee
from Arbor Realty under this Agreement.

“Income”: With respect to each Purchased Item and to the extent of the Seller’s or the
holder’s interest therein, at any time, all of the following: all payments, collections,
prepayments, recoveries, proceeds (including, without limitation, insurance and condemnation
proceeds) and all other payments or amounts of any kind or nature whatsoever paid, received,
collected, recovered or distributed on, in connection with or in respect of the Purchased Assets,
the Purchased Items, the Pledged Collateral or any other collateral for the Obligations under the
Facility, including, without limitation, principal payments, interest payments, principal and
interest payments, prepayment fees, extension fees, exit fees, defeasance fees, transfer fees, late
charges, late fees and all other fees or charges of any kind or nature, premiums, yield maintenance
charges, penalties, default interest, dividends, gains, receipts, allocations, rents, interests,
profits, payments in kind, returns or repayment of contributions and all other distributions,
payments and other amounts of any kind or nature whatsoever payable thereon, in connection
therewith, or with respect thereto, together with amounts received from any Interest Rate
Protection Agreement and amounts withdrawn from the Homewood Interest Reserve by the Purchaser;
provided, however, (i) prior to an Event of Default, the Seller may net the
Servicing Fee from Income and (ii) Income shall not include any Borrower Reserve Payments unless
the Seller, a Servicer or a PSA Servicer has exercised rights with respect to such payments under
the terms of the related Mortgage Loan Documents, the Servicing Agreements or the Pooling and
Servicing Agreements, as applicable.

“Increased Costs”: Any amounts required to be paid by the Seller to the Deal Agent, the
Purchaser or any Affected Party pursuant to Section 2.13 of this Agreement.

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“Indebtedness”: Means, with respect to Person (in reference to ART and its Subsidiaries,
Person shall mean ART and its Consolidated Subsidiaries determined on a consolidated basis), at the
time of computation thereof, all of the following (without duplication): (a) all obligations of
such Person in respect of money borrowed (including without limitation principal, interest,
assumption fees (to the extent they are due during the period in question), prepayment fees (to the
extent it is due during the period in question), contingent interest (to the extent they are due
during the period in question), and other monetary obligations whether choate or inchoate); (b) all
obligations of such Person, whether or not for money borrowed (i) represented by notes payable,
letters of credit, or drafts accepted, in each case representing extensions of credit, (ii)
evidenced by bonds, debentures, notes or similar instruments, or (iii) constituting purchase money
indebtedness, conditional sales contracts, title retention debt instruments or other similar
instruments, upon which interest charges are customarily paid or that are issued or assumed as full
or partial payment for property or services rendered; (c) Capital Lease Obligations of such Person;
(d) all reimbursement obligations of such Person under any letters of credit or acceptances
(whether or not the same have been presented for payment); (e) all Off–Balance Sheet Obligations of
such Person; (f) all obligations of such Person to purchase, redeem, retire, defease or otherwise
make any payment in respect of any Mandatory Redeemable Stock issued by such Person or any other
Person (inclusive of forward equity contracts), valued at the greater of its voluntary or
involuntary liquidation preference plus accrued and unpaid dividends; (g) as applicable, all
obligations of such Person (but not the obligation of others) in respect of any keep well
arrangements, credit enhancements, contingent or future funding obligations under any Eligible
Asset or any obligation senior to the Eligible Asset, unfunded interest reserve amount under any
Eligible Asset or any obligation that is senior to the Eligible Asset, purchase obligation,
repurchase obligation, takeout commitment or forward equity commitment, in each case evidenced by a
binding agreement (excluding any such obligation to the extent the obligation can be satisfied by
the issuance of Equity Interests (other than Mandatory Redeemable Stock)); (h) net obligations
under any Derivative Contract not entered into as a hedge against existing Indebtedness, in an
amount equal to the Derivatives Termination Value thereof; (i) all Indebtedness of other Persons
which such Person has guaranteed or is otherwise recourse to such Person (except for guaranties of
customary exceptions for fraud, misapplication of funds, environmental indemnities and other
similar exceptions to recourse liability (but not exceptions relating to bankruptcy, insolvency,
receivership or other similar events)); (j) all Indebtedness of another Person secured by (or for
which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured
by) any Lien (other than certain Permitted Liens) on property or assets owned by such Person, even
though such Person has not assumed or become liable for the payment of such Indebtedness or other
payment obligation; provided, however, if such Person has not assumed or become
liable for the payment of such Indebtedness, then for the purposes of this definition the amount of
such Indebtedness shall not exceed the market value of the property subject to such Lien and (k)
Contingent Liabilities.

“Indemnified Amounts”: Defined in Subsection 11.1(a) of this Agreement.

“Indemnified Parties”: Defined in Subsection 11.1(a) of this Agreement.

“Independent Director”: A natural Person who (a) is not at the time of initial appointment
as Independent Director, and may not have been at any time during the five (5) years preceding such
initial appointment or at any time while serving as Independent Director, (i) a stockholder,
partner, member or direct or indirect legal or beneficial owner of the Seller, the Guarantor or any
Affiliate of the Seller or the Guarantor; (ii) a contractor, creditor, customer, supplier, director
(with the exception of serving as the Independent Director of the Seller), officer, employee,
attorney, manager or other Person who derives any of its purchases or revenues from its activities
with the Seller, the Guarantor or any Affiliate of the Seller or the Guarantor; (iii) a natural
Person who controls (directly or indirectly or otherwise) the Seller, the Guarantor or any
Affiliate of the Seller or Guarantor or who controls or is under common control with

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any Person that would be excluded from serving as an Independent Director under (i) or
(ii), above; or (iv) a member of the immediate family of a natural Person excluded from
servicing as an Independent Director under (i) or (ii) above and (b) otherwise
satisfies the then current requirements of the Rating Agencies. A Person who is an employee of a
nationally recognized organization that supplies independent directors and who otherwise satisfies
the criteria in clause (a) but for the fact that such organization receives payment from
Seller or Guarantor for providing such independent director shall not be disqualified from serving
as an Independent Director hereunder.

“Insolvency Event”: With respect to a specified Person, (a) the filing of a decree or
order for relief by a court having jurisdiction in the premises in respect of such Person or any
substantial part of its Property in an involuntary case under any applicable Insolvency Law now or
hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official for such Person or for any substantial part of its Property, or
ordering the winding–up or liquidation of such Person’s affairs, and such decree or order shall
remain unstayed and in effect for a period of ninety (90) consecutive days; or (b) the commencement
by such Person of a voluntary case under any applicable Insolvency Law now or hereafter in effect,
or the consent by such Person to the entry of an order for relief in an involuntary case under any
such law, or the consent by such Person to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for
any substantial part of its Property, or the making by such Person of any general assignment for
the benefit of creditors, or the failure by such Person generally to pay its debts as such debts
become due, or the taking of action by such Person in furtherance of any of the foregoing.

“Insolvency Laws”: The Bankruptcy Code and all other applicable liquidation,
conservatorship, bankruptcy, moratorium, rearrangement, receivership, insolvency, reorganization,
suspension of payments or similar debtor relief laws from time to time in effect affecting the
rights of creditors generally.

“Insolvency Proceeding”: Any case, action or proceeding before any court or other
Governmental Authority relating to any Insolvency Event.

“Instrument”: Any “instrument” (as defined in Article 9 of the UCC), other than an
instrument that constitutes part of chattel paper.

“Interest Expense”: For ART and its Consolidated Subsidiaries, the total interest expense
incurred (in accordance with GAAP), including capitalized or accruing interest (but excluding
interest funded under a construction loan), by ART and its Consolidated Subsidiaries on a
consolidated basis, without duplication for the most recent period.

“Interest Rate Protection Agreement”: With respect to any or all of the Mortgage Assets,
(i) any Derivatives Contract required under the terms of the related Mortgage Loan Documents
providing for protection against fluctuations in interest rates or the exchange of nominal interest
obligations, either generally or under specific contingencies, and acceptable to the Purchaser in
its discretion and (ii) any Derivatives Contract put in place by the Seller, the Guarantor or any
Affiliate of the foregoing with respect to any Mortgage Asset.

“Investment”: Means, with respect to any Person, any acquisition or investment (whether or
not of a controlling interest) by such Person, whether by means of (a) the purchase or other
acquisition of any Equity Interest in another Person, (b) a loan, advance or extension of credit
to, capital contribution to, guaranty or credit enhancement of Indebtedness of, or purchase or
other acquisition of any Indebtedness of, another Person, including any partnership or joint
venture interest in such other Person, or (c) the purchase or other acquisition (in one transaction
or a series of transactions) of assets of another Person that constitute the business or a division
or operating unit of another Person. Any binding commitment or

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option to make an Investment in any other Person shall constitute an Investment. Except as
expressly provided otherwise, for purposes of determining compliance with any covenant contained in
the Repurchase Documents, the amount of any Investment shall be the amount actually invested,
without adjustment for subsequent increases or decreases in the value of such Investment.

“Investment Grade Rating”: A rating of at least BBB– (or the equivalent) by two (2) or
more Rating Agencies.

“Issuer”: VFCC and any other Purchaser whose principal business consists of issuing
commercial paper or other securities to fund its acquisition or maintenance of receivables,
accounts, instruments, chattel paper, general intangibles and other similar assets.

“Joinder Agreement”: A Joinder Agreement substantially in the form of Exhibit XIV
attached hereto and made a part hereof between the Purchaser, the Seller and a Co–Seller under a
Preferred Equity Interest.

“Junior Interest”: (a) A senior, pari passu or junior participation interest in a
performing Commercial Real Estate Loan or (b) a senior, pari passu or junior note or certificate in
an “A/B” or similar structure in a performing Commercial Real Estate Loan.

“Junior Interest Document”: The original executed promissory note, Participation
Certificate, Participation Agreement and any other evidence of a Junior Interest, as applicable.

“Land Loans”: A Commercial Real Estate Loan secured by entitled land intended for
construction, which loan is acceptable to the Purchaser in its discretion. Land Loans are not
Eligible Assets unless deemed so on a case by case basis in the Purchaser’s discretion.

“Late Payment Fee”: Defined in Subsection 2.5(a) of this Agreement.

“Lead Based Paint”: Paint containing more than 0.5% lead by dry weight.

“LIBOR Rate”: For any day during any Accrual Period and any Transaction or portion
thereof, a rate per annum equal to:

     (i) the posted rate for thirty (30) day deposits in United States Dollars appearing on
Telerate page 3750 as of 11:00 a.m. (London time) on the Business Day which is the second
(2nd) Business Day immediately preceding the applicable Purchase Date (with respect to the
initial Accrual Period for such Transaction) and as of the second (2nd) Business Day
immediately preceding the first (1st) day of the applicable Accrual Period (with respect to
all subsequent Accrual Periods for such Transaction); or

     (ii) if no such rate appears on Telerate page 3750 at such time and day, then the LIBOR
Rate shall be determined by Wachovia at its principal office in Charlotte, North Carolina as
its rate (each such determination, absent manifest error, to be conclusive and binding on
all parties hereto and their assignees) at which thirty (30) day deposits in United States
Dollars are being, have been, or would be offered or quoted by Wachovia to major banks in
the applicable interbank market for Eurodollar deposits at or about 11:00 a.m. (Charlotte,
North Carolina time) on such day.

“Lien”: Any mortgage, lien, pledge, charge, right, claim, security interest or encumbrance
of any kind of or on any Person’s assets or properties in favor of any other Person (including any
UCC financing statement or any similar instrument filed against such Person’s assets or
properties).

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“Liquidity”: An amount equal to the (a) sum of (without duplication) (i) the amount of
unrestricted cash and unrestricted Cash Equivalents, plus (ii) the Excess Margin,
plus (iii) excess margin under the Bank Repurchase Facility (if any), plus (iv)
borrowing availability under the Working Capital Facility, in each case in clause (i),
(ii), (iii), and (iv), solely to the extent that such amounts exceed the
amounts necessary to satisfy at such time all of the Financial Covenants hereunder and all
financial covenants under the (1) Bank Repurchase Facility (if any) and (2) the Working Capital
Facility, in each case to the extent ART continues to be in compliance thereof, less, (b)
amounts necessary to satisfy Margin Deficits under this Agreement and margin deficits under the
Bank Repurchase Facility (if any).

“Liquidity Agent”: Wachovia and any successor to Wachovia under the Liquidity Agreement.

“Liquidity Agreement”: The Liquidity Purchase Agreement, dated as of an even date
herewith, among VFCC, as the seller, the Liquidity Banks named therein, WCM as the deal agent and
the documentation agent, and Wachovia, as the Liquidity Agent, and any other liquidity agreement
applicable to a Purchaser that is a commercial paper conduit, each as amended, modified, restated,
replaced, waived, substituted, supplemented or extended from time to time.

“Liquidity Banks”: The Person or Persons who provide liquidity support to VFCC or any
other Purchaser that is a commercial paper conduit pursuant to the Liquidity Agreement or other
liquidity agreement in connection with the issuance of Commercial Paper Notes.

“Loan–to–Value Ratio” or “LTV”: With respect to any Mortgage Asset or Purchased
Asset, as applicable, the ratio of the outstanding principal amount of such Mortgage Asset at the
time of a Transaction for such Mortgage Asset to the market value of the related Underlying
Mortgaged Property at such time, as determined by the Deal Agent in its discretion, as such LTV may
be adjusted by the Deal Agent as the Deal Agent determines in its discretion; provided,
however, that all such calculations shall be made taking into account any senior or pari
passu debt or other obligations secured directly or indirectly by the applicable Underlying
Mortgaged Property.

“LTC”: With respect to any Mortgage Asset or Purchased Asset, as applicable, that is a
Bridge Loan, as of any date of determination, the ratio of the outstanding principal amount of such
Eligible Asset or Purchased Asset, as applicable, to the Construction Costs for such Eligible Asset
or Purchased Asset, as applicable; provided, however, that all such calculations
shall be made taking into account any senior or pari passu debt or other obligations secured
directly or indirectly by the applicable Underlying Mortgaged Property.

“Mandatory Redeemable Stock”: Means, with respect to any Person and any Subsidiary
thereof, any Equity Interest of such Person which by the terms of such Equity Interest (or by the
terms of any security into which it is convertible or for which it is exchangeable or exercisable),
upon the happening of any event or otherwise (a) matures or is required to be redeemed, pursuant to
a sinking fund obligation or otherwise (other than an Equity Interest to the extent redeemable in
exchange for common stock or other equivalent common Equity Interest), (b) is convertible into or
exchangeable or exercisable for Indebtedness or Mandatory Redeemable Stock, or (c) is redeemable at
the option of the holder thereof, in whole or in part (other than an Equity Interest which is
redeemable solely in exchange for common stock or other equivalent common Equity Interest); in each
case, on or prior to the maturity date of the Agreement.

“Margin Base”: On any day, the aggregate Asset Value of all Purchased Assets.

“Margin Deficit”: Defined in Subsection 2.7(a) of this Agreement.

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“Margin Deficit Notice”: Defined in Subsection 2.7(a) of this Agreement.

“Market Value”: As of any date in respect of any Mortgage Asset, the price at which such
Mortgage Asset could readily be sold, as determined by the Deal Agent in its discretion (which
price may be determined to be zero).

“Material Adverse Effect”: A material adverse effect on (a) the Property, business,
operations, financial condition or prospects of the Seller, the Guarantor or the Pledgor, (b) the
ability of each of the Seller, the Guarantor or the Pledgor to perform its obligations under any of
the Repurchase Documents to which it is a party, (c) the validity or enforceability of any of the
Repurchase Documents, (d) the rights and remedies of the Purchaser under any of the Repurchase
Documents, (e) the timely payment of any amounts payable under the Repurchase Documents, or (f) the
Asset Value of the Purchased Assets.

“Materials of Environmental Concern”: Any mold, petroleum (including, without limitation,
crude oil or any fraction thereof), petroleum products or by–products (including, without
limitation, gasoline), or any hazardous, toxic or harmful substances, materials, wastes, pollutants
or contaminants, defined as such in or regulated under any Environmental Law, including, without
limitation, asbestos, asbestos containing materials, polychlorinated biphenyls, urea–formaldehyde
insulation, radioactive materials, Lead Based Paint, Toxic Mold, flammable explosives and radon.

“Maximum Amount”: Subject to Subsection 2.3(a), $425,000,000, as such amount may,
pursuant to a written request of the Seller, be increased one or more times during the Facility
Period in the Purchaser’s discretion (but in all events subject to the Purchaser obtaining internal
credit and other approvals) up to but not in the excess of $750,000,000; provided,
however, on and after the Facility Maturity Date, the Maximum Amount shall mean the
aggregate Purchase Price outstanding for all Transactions.

“Maximum LTC”: With respect to any Mortgage Asset or Purchased Asset, as applicable, that
is a Bridge Loan, at any time the LTC for related Underlying Mortgaged Property set forth on
Schedule 1 to the Fee Letter under the heading “End LTC” for the applicable Class of such
Mortgage Asset or Purchased Asset, as applicable; provided, however, that all such
calculations shall be made taking into account any senior or pari passu debt secured directly or
indirectly by the applicable Underlying Mortgaged Property.

“Maximum LTV”: With respect to any Mortgage Asset or Purchased Asset, as applicable, at
any time, the Loan–to–Value Ratio for the related Underlying Mortgaged Property set forth on
Schedule 1 to the Fee Letter under the heading “End LTV” for the applicable Class of such
Mortgage Asset or Purchased Asset, as applicable; provided, however, that all such
calculations shall be made taking into account any senior or pari passu debt secured directly or
indirectly by the applicable Underlying Mortgaged Property.

“Mezzanine Collateral”: Defined in Schedule 1, Part II.

“Mezzanine Loan”: A performing mezzanine loan secured by pledges of all (but not less than
all) the Equity Interest of the Person that owns income producing Commercial Real Estate.

“Mezzanine Note”: The original executed promissory note or other evidence of Mezzanine
Loan indebtedness.

“Minimum DSCR”: With respect to any Eligible Asset or Purchased Asset, as applicable, at
any time, the DSCR for the related Underlying Mortgaged Property set forth on Schedule 1 to
the Fee Letter under the heading “DSCR” for the applicable Class of such Mortgage Asset or
Purchased Asset, as applicable;

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provided, however, that all such calculations shall be made taking into account any
senior or pari passu debt secured directly or indirectly by the applicable Underlying Mortgaged
Property.

“Moody’s”: Moody’s Investors Service, Inc., and any successor thereto.

“Mortgage”: Each mortgage, assignment of rents, security agreement and fixture filing, or
deed of trust, assignment of rents, security agreement and fixture filing, or similar instrument
creating and evidencing a Lien on real property, fixtures and other property and rights incidental
thereto.

“Mortgage Asset”: An Assignment of a Whole Loan, a Junior Interest, a Mezzanine Loan, a
Bridge Loan, a Preferred Equity Interest or, as applicable, a Construction Loan or Land Loan, in
each case, the Underlying Mortgaged Property for which is included in the categories for Types of
Mortgage Assets. Mortgage Assets shall not include any Retained Interest (if any).

“Mortgage Asset File”: Defined in the Custodial Agreement.

“Mortgage Asset File Checklist”: Defined in the Custodial Agreement.

“Mortgage Loan Documents”: Defined in the Custodial Agreement.

“Mortgage Note”: The original executed promissory note or other evidence of the
Indebtedness of a Borrower with respect to a Mortgage Asset.

“Mortgaged Property”: The Commercial Real Estate (including all improvements, buildings,
fixtures, building equipment and personal property thereon and all additions, alterations and
replacements made at any time with respect to the foregoing) and all other collateral securing
repayment of the debt evidenced by a Mortgage Note or a Junior Interest Document.

“Mortgagee”: The record holder of a Mortgage Note secured by a Mortgage.

“Multiemployer Plan”: A “multiemployer plan” as defined in Section 4001(a)(3) of ERISA
that is or was at any time during the current year or the immediately preceding five (5) years
contributed to by the Seller, the Guarantor or any ERISA Affiliate on behalf of its employees.

“Net Cash Flow”: With respect to any Underlying Mortgaged Property, for any period, the
Net Income (or deficit) attributable to such property for such period, determined in accordance
with GAAP, less the amount of all (a) capital expenditures incurred, (b) reserves
established, (c) leasing commissions paid (other than commissions paid from reserves held under the
Mortgage Loan Documents) and (d) tenant improvements paid during such period (other than tenant
improvements paid from reserves held under the Mortgage Loan Documents) in each case attributable
to such property, plus all non–cash charges deducted in the calculation of such net income.

“Net Income”: With respect to ART and its Subsidiaries determined on a consolidated basis
for any period, the net income of ART and its Subsidiaries determined on a consolidated basis for
such period as determined in accordance with GAAP.

“Net Total Liabilities”: Total Liabilities minus the sum of (a) aggregate
principal amount outstanding under the Eligible Subordinated Debt and (b) deferred revenues
relating to the 450 Transaction to the extent classified as a liability according to GAAP.

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“Non–Recourse Indebtedness”: Means, with respect to any Person, Indebtedness for borrowed
money in respect of which recourse for payment (except for customary exceptions for fraud,
misapplication of funds, environmental indemnities, and other similar exceptions to non–recourse
provisions (but not exceptions relating to bankruptcy, insolvency, receivership or other similar
events)) is contractually limited to specific assets of such Person encumbered by a Lien securing
such Indebtedness.

“Non–Table Funded Purchased Asset”: A Purchased Asset that is not a Table Funded Purchased
Asset.

“Non–Wachovia Assets”: Any Mortgage Asset issued or extended by a Person other than
Wachovia Corporation or an Affiliate of Wachovia Corporation.

“Obligations”: Defined in Subsection 8.1(a) of this Agreement.

“OFAC”: The U.S. Department of the Treasury’s Office of Foreign Assets Control.

“OFAC Regulations”: The regulations promulgated by OFAC, as amended from time to time.

“Off–Balance Sheet Obligations”: With respect to any Person (in reference to ART and its
Subsidiaries, Person shall mean ART and its Consolidated Subsidiaries determined on a consolidated
basis) as of any date of determination thereof, without duplication and to the extent not included
as a liability on the consolidated balance sheet of ART and its Consolidated Subsidiaries in
accordance with GAAP: (a) the monetary obligations under any financing lease or so–called
“synthetic,” tax retention or off–balance sheet lease transaction which, upon the application of
any Insolvency Laws to such Person or any of its Consolidated Subsidiaries, would be characterized
as indebtedness; (b) the monetary obligations under any sale and leaseback transaction which does
not create a liability on the consolidated balance sheet of such Person and its Consolidated
Subsidiaries; or (c) any other monetary obligation arising with respect to any other transaction
which (i) is characterized as indebtedness for tax purposes but not for accounting purposes in
accordance with GAAP or (ii) is the functional equivalent of or takes the place of borrowing but
which does not constitute a liability on the consolidated balance sheet of such Person and its
Consolidated Subsidiaries (for purposes of this clause (c), any transaction structured to
provide tax deductibility as interest expense of any dividend, coupon or other periodic payment
will be deemed to be the functional equivalent of a borrowing).

“Officer’s Certificate”: A certificate signed by a Responsible Officer of the Seller or
the Guarantor, as applicable.

“Operating Account”: The account of the Seller set forth on Schedule 3 hereto.

“Opinion of Counsel”: A written opinion of counsel, which opinion and counsel are
acceptable to the Deal Agent in its sole discretion.

“Originator”: With respect to each Mortgage Asset, the Person who originated such Mortgage
Asset.

“Other Costs”: Defined in Subsection 13.9(c) of this Agreement.

“Participation Agreement”: Defined in the Custodial Agreement.

“Participation Certificate”: Defined in the Custodial Agreement.

“Payment Date”: The next to the last Business Day of each calendar month.

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“PBGC”: The Pension Benefit Guaranty Corporation or any entity succeeding to any or all of
its functions under ERISA.

“Pension Plans”: Defined in Subsection 4.1(u) of this Agreement.

“Periodic Advance Repurchase Payment”: Defined in Subsection 2.5(a) of this
Agreement.

“Permitted Indebtedness”: With respect to Preferred Equity Interests, Indebtedness that is
permitted under the related Mortgage Loan Documents and disclosed in writing to the Deal Agent in a
Transaction Request and a Confirmation.

“Permitted Investments”: Investments of any one or more of the following types:

          (a) marketable obligations of the United States, the full and timely payment of which are
backed by the full faith and credit of the United States of America and that have a maturity of not
more than 270 days from the date of acquisition;

          (b) marketable obligations, the full and timely payment of which are directly and fully
guaranteed by the full faith and credit of the United States and that have a maturity of not more
than 270 days from the date of acquisition;

          (c) bankers’ acceptances and certificates of deposit and other interest–bearing obligations
(in each case having a maturity of not more than 270 days from the date of acquisition) denominated
in dollars and issued by any bank with capital, surplus and undivided profits aggregating at least
$100,000,000, the short–term obligations of which are rated of least A–1 by S&P and P–1 by Moody’s;

          (d) repurchase obligations with a term of not more than ten (10) days for underlying
securities of the types described in clauses (a), (b) and (c) above entered
into with any bank of the type described in clause (c) above;

          (e) commercial paper rated at least A–1 by S&P and P–1 by Moody’s;

          (f) demand deposits, time deposits or certificates of deposit (having original maturities of
no more than 365 days) of depository institutions or trust companies incorporated under the laws of
the United States of America or any state thereof (or domestic branches of any foreign bank) and
subject to supervision and examination by federal or state banking or depository institution
authorities; provided, however, that at the time such investment, or the commitment
to make such investment, is entered into, the short–term debt rating of such depository institution
or trust company shall be at least A–1 by S&P and P–1 by Moody’s; and

          (g) money market mutual funds possessing the highest available rating from S&P and Moody’s.

“Permitted Liens”: Any of the following as to which no enforcement, collection, execution,
levy or foreclosure proceeding shall have been commenced: (a) Liens for state, municipal or other
local taxes if such taxes shall not at the time be due and payable, (b) Liens imposed by Applicable
Law, such as materialmen’s, mechanics’, carriers’, workmen’s and repairmen’s Liens and other
similar Liens, arising in the ordinary course of business securing obligations that are not overdue
for a period of more than thirty (30) days, (c) Liens granted pursuant to or by the Repurchase
Documents, and (d) in the case of the Purchased Assets only and not the Seller’s interest therein,
with respect to any Underlying Mortgaged Property, Liens which are permitted pursuant to the terms
of the Mortgage Loan Documents.

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“Person”: An individual, partnership, corporation (including a business trust), limited
liability company, joint stock company, trust, unincorporated association, sole proprietorship,
joint venture, government (or any agency or political subdivision thereof) or other entity.

“Plan”: An employee benefit or other plan established or maintained by any Seller, the
Guarantor or any ERISA Affiliate and covered by Title IV of ERISA, other than a Multiemployer Plan.

“Plan Party”: Defined in Subsection 13.22(c) of this Agreement.

“Pledge Agreement”: The Pledge and Security Agreement, dated as of the date hereof,
executed by ARSR in favor of the Deal Agent as agent for the Secured Parties, as amended, modified,
waived, supplemented, extended, restated or replaced from time to time.

“Pledged Collateral”: Defined in the Pledge and Security Agreement.

“Pledgor”: ARSR.

“Pooling and Servicing Agreements”: Any and all pooling and servicing agreements governing
servicing and other matters entered into in connection with a securitization of the senior interest
in a Mortgage Asset, where such transaction is rated by one (1) or more Rating Agencies.

“Post–Default Rate”: In respect of any day a Transaction is outstanding or any other
amount under this Agreement or any other Repurchase Document is not paid when due to the Deal
Agent, the Purchaser, any Secured Party or any other Affected Party at the stated Repurchase Date
or otherwise when due (a “Post–Default Day”), a rate per annum determined on a 360 day per
year basis during the period from and including the due date to but excluding the date on which
such amount is paid in full equal to the applicable Rate plus 500 basis points.

“Preferred Dividends”: Means, for any period and without duplication, all Restricted
Payments paid or required to be paid during such period on Preferred Securities issued by ART or a
Consolidated Subsidiary. Preferred Dividends shall not include dividends or distributions (a) paid
or payable solely in Equity Interests (other than Mandatory Redeemable Stock) payable to holders of
such class of Equity Interests; (b) paid or payable to ART or a Consolidated Subsidiary; or (c)
constituting or resulting in the redemption of Preferred Securities, other than scheduled
redemptions not constituting balloon, bullet or similar redemptions in full.

“Preferred Equity Grantor”: The entity in which a Preferred Equity Interest represents an
investment.

“Preferred Equity Interest”: The entire Equity Interest representing the preferred equity
interest in an entity that owns Commercial Real Estate, including, but not limited to, all equity
interests representing a dividend on any of the Equity Interest of the Preferred Equity Grantor or
representing a distribution or return of capital upon or in respect of the Equity Interest of the
Preferred Equity Grantor, in each case as it relates to a Preferred Equity Interest;
provided, however, (i) such Preferred Equity Interest must contain a synthetic
maturity feature acceptable to the Deal Agent in its discretion, (ii) the Purchaser’s funding of
the Preferred Equity Interest is subject to regulatory and compliance criteria, and (iii) the Deal
Agent reserves the right to require that each Preferred Equity Interest be acquired by and
transferred to the Purchaser or its designee by a special purpose entity as a Co–Seller under the
Agreement and for the Co–Seller to execute a Joinder Agreement as a condition to the purchase of
the Preferred Equity Interest. All references to, and calculations required to be made in respect
of, any principal and/or interest associated with any Mortgage Asset, shall, with respect to
Mortgage Assets consisting of Preferred Equity Interests,

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be deemed to refer, respectively, to the face amount of such Preferred Equity Interest and the
preferred return or yield (however such terms are denominated, as set forth in the related Mortgage
Loan Documents), whether payable or accrued.

“Preferred Equity Interest Documents”: Defined in the Custodial Agreement.

“Preferred Equity Security Agreement”: The Preferred Equity Interest Pledge and Security
Agreement, dated as of the date hereof, executed by the Seller in favor of the Deal Agent, as
amended, modified, waived, supplemented, extended, restated or replaced from time to time.

“Preferred Securities”: Means, with respect to any Person, Equity Interest in such Person
that are entitled to preference or priority over any other Equity Interest in such Person in
respect of the payment (or accrual) of dividends or distribution of assets upon liquidation, or
both.

“Price Differential”: For each Accrual Period and each Transaction outstanding, the sum of
the products (for each day during such Accrual Period) of:

	 	 	 	 	 
	PR x PP x

	 	1
 

D
	 	 

	 	 	 	 	 	 	 
	where:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	PR
	 	=
	 	the Pricing Rate applicable on such day;
	 
	 	 	 	 	 	 
	 

	 	PP
	 	=
	 	the Purchase Price for such Transaction on such day; and
	 
	 	 	 	 	 	 
	 

	 	D
	 	=
	 	360 or, to the extent the Rate is based on the Base Rate, 365
or 366 days, as applicable;

provided, however, that (i) no provision of this Agreement shall require the
payment or permit the collection of any Price Differential in excess of the maximum permitted by
Applicable Law and (ii) the Price Differential shall not be considered paid by any distribution if
at any time such distribution is rescinded or must otherwise be returned for any reason.

“Pricing Rate”: With respect to any Transaction, as of any date of determination, a rate
per annum equal to the sum of (a) the applicable Rate on such date plus (b) the applicable
Pricing Spread for such Mortgage Asset or Purchased Asset, as applicable, on such date.

“Pricing Spread”: The spreads set forth on Schedule 1 to the Fee Letter
corresponding to the Classes of Mortgage Assets or Purchased Assets, as applicable, set forth
therein; provided, however, from and after an Event of Default, the Pricing Spread
for each Transaction shall be increased an additional 500 basis points.

“Prime Rate”: The rate announced by Wachovia from time to time as its prime rate in the
United States, such rate to change as and when such designated rate changes. The Prime Rate is not
intended to be the lowest rate of interest charged by Wachovia in connection with extensions of
credit to debtors.

“Prohibited Person”: Means (i) a Person that is listed in the annex to, or is otherwise
subject to the provisions of, Executive Order No. 13224, (ii) a Person owned or controlled by, or
acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject to
the provisions of, Executive Order No. 13224, (iii) a Person with whom the Seller, the Guarantor
and/or the Pledgor is prohibited from dealing or otherwise engaging in any transaction by any
Anti–Terrorism Law, (iv) a Person who commits, threatens or conspires to commit or supports
“terrorism” as defined in Executive Order No. 13224, (v) an agency of the government of, an
organization directly or indirectly controlled by, or a Person resident in,

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a country that is subject to a sanctions program identified on the list maintained by OFAC and
available at
http://www.treas.gov/offices/eotffc/ofac/sanctions/index.html, or as otherwise
published from time to time, as such program may be applicable to such agency, organization or
person, (vi) a Person that is named as a “specially designated national or blocked person” on the
most current list maintained or published by OFAC and available at
http://www.treas.gov/offices/eotffc/ofac/sdn.index.html or at any replacement website or in
any other official publication of such list, and (vii) a Person who is affiliated with a Person
described in clauses (i)–(vi) above.

“Property”: Any right or interest in or to property of any kind whatsoever, whether real,
personal or mixed, and whether tangible or intangible.

“PSA Servicer”: A third party servicer (other than the Seller) servicing all or a portion
of the Purchased Assets under a Pooling and Servicing Agreement.

“Purchase Agreement”: Any purchase agreement by and between the Seller and any third
party, including, without limitation, any Affiliate of the Seller, pursuant to which the Seller has
purchased Mortgage Assets subsequently sold to the Purchaser or its designee hereunder.

“Purchase Date”: The date on which Eligible Assets are transferred by the Seller to the
Purchaser or its designee (including the Custodian).

“Purchase Price”: On each Purchase Date, the price at which Eligible Assets are
transferred by the Seller to the Purchaser or its designee (including the Custodian), which shall
equal the Asset Value for such Eligible Assets on the Purchase Date (but in any case such Purchase
Price shall not exceed the unpaid principal amount of such Eligible Asset), (x) decreased by the
amount of any principal payments or prepayments transferred by the Seller to the Deal Agent as
agent for the Secured Parties pursuant to Subsection 2.3 and/or Section 2.7 or
applied to reduce the Seller’s obligations in respect of principal under Section 2.8 hereof
and (y) increased by any increases in the Purchase Price pursuant to Section 2.6.

“Purchased Asset Data Summary”: Defined in Subsection 5.1(t)(vi) of this
Agreement.

“Purchased Assets”: The Eligible Assets sold by the Seller to the Purchaser pursuant to a
Transaction in accordance with Article II.

“Purchased Items”: Defined in Subsection 8.1(a) of this Agreement.

“Purchaser”: Individually or collectively as the context requires, VFCC, the Swingline
Purchaser, any other Person that becomes a Purchaser under the Repurchase Documents and the
successors and assigns of the foregoing.

“Rate”: For any Accrual Period and for each Transaction outstanding and for each day
during such Accrual Period:

          (a) to the extent the Purchaser has funded the applicable Transaction through the issuance of
commercial paper, a rate equal to the applicable CP Rate; or

          (b) to the extent the Purchaser did not fund the applicable Transaction through the issuance
of commercial paper, a rate equal to the Alternative Rate;

provided, however, the Rate shall be the Base Rate for any Accrual Period and for
any Transaction as to which VFCC has funded the making or maintenance thereof by a sale of an
interest therein to any

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Liquidity Bank under the Liquidity Agreement on any day other than the first (1st) day of such
Accrual Period and without giving such Liquidity Bank(s) at least two (2) Business Days’ prior
notice of such assignment.

“Rating Agency”: Each of S&P, Moody’s, Fitch and any other nationally recognized
statistical rating agency that has been requested to issue a rating with respect to the commercial
paper notes issued by the Issuer in connection with the matter at issue, including successors of
the foregoing.

“Rating Confirmation”: With respect to VFCC and any other Purchaser that is a commercial
paper conduit, a confirmation by each of the Rating Agencies that a proposed amendment, waiver or
other modification shall not result in a downgrade or withdrawal of such Rating Agencies’ then
current rating of the Commercial Paper Notes.

“Regulations T, U and X”: Regulations T, U and X of the Board of Governors of the Federal
Reserve System (or any successor), as the same may be amended, modified, waived, supplemented,
extended, restated or replaced from time to time.

“Related Party Loan”: Any loan, Indebtedness or preferred equity investment identified or
presented as a related party loan in ART’s consolidated financial statements or in the notes to the
consolidated financial statements, in accordance with GAAP; provided, however,
Related Party Loan shall not include any loan or preferred equity investment (i) which is held as
collateral in a CDO Issuance involving ART or any Consolidated Subsidiary of ART or (ii) to which
the Deal Agent has consented in writing to its exclusion from the definition of Related Party Loan.

“Release”: Any generation, treatment, use, storage, transportation, manufacture,
refinement, handling, production, removal, remediation, disposal, presence or migration of
Materials of Environmental Concern on, about, under or within all or any portion of any Property or
Underlying Mortgaged Property.

“Remedial Work”: Any investigation, inspection, site monitoring, containment, clean–up,
removal, response, corrective action, mitigation, restoration or other remedial work of any kind or
nature because of, or in connection with, the current or future presence, suspected presence,
Release or threatened Release in or about the air, soil, ground water, surface water or soil vapor
at, on, about, under or within all or any portion of any Property or Underlying Mortgaged Property
of any Materials of Environmental Concern, including any action to comply with any applicable
Environmental Laws or directives of any Governmental Authority with regard to any Environmental
Laws.

“REO Property”: Real property acquired by the Seller, including a Mortgaged Property,
through foreclosure of a Mortgage Asset or by deed in lieu of such foreclosure.

“REMIC”: A real estate mortgage investment conduit.

“Reportable Event”: Any of the events set forth in Section 4043(c) of ERISA or a successor
provision thereof, other than those events as to which the notice requirement has been waived by
regulation.

“Repurchase Date”: The earliest of (i) the Facility Maturity Date, (ii) the date that is
364 calendar days from the Purchase Date, or (iii) the Business Day on which the Seller is to
repurchase the Purchased Assets from the Purchaser or its designee (a) as specified by the Seller
and agreed to by the Deal Agent in the related Confirmation or (b) if a Transaction is terminable
by the Seller on demand, the date determined in accordance with Subsection 2.2(j), as such
date in clauses (i), (ii), and (iii) may be modified by application of the
provisions of Articles II or X.

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“Repurchase Documents”: This Agreement, the Custodial Agreement, the Account Agreement,
the Fee Letter, the Guaranty, the Assignments, the Pledge Agreement, the Preferred Equity Security
Agreement, each Joinder Agreement, each Confirmation, the Custodial Fee Letter, any UCC financing
statements (and amendments thereto) filed pursuant to the terms of this Agreement or any other
Repurchase Document and any additional document the execution of which is necessary or incidental
to carrying out the terms of the foregoing documents, as each of the foregoing documents is
amended, modified, restated, replaced, waived, substituted, supplemented or extended from time to
time.

“Repurchase Obligations”: Defined in Subsection 8.1(b) of this Agreement.

“Repurchase Parties”: The collective reference to the Seller, the Guarantor and the
Pledgor.

“Repurchase Price”: The price at which Purchased Assets are to be transferred from the
Purchaser or its designee (including the Custodian) to the Seller upon termination of a
Transaction, which will be determined in each case (including Transactions terminable upon demand)
as the sum of the Purchase Price, the accrued and unpaid Price Differential applicable to each such
Transaction as of the date of such determination plus any related Breakage Costs.

“Request for Additional Transaction for Excess Margin”: Defined in Subsection
2.6(a) of this Agreement.

“Responsible Officer”: With respect to any Person, any duly authorized officer of such
Person with direct responsibility for the administration of the Repurchase Documents and also, with
respect to a particular matter, any other duly authorized officer to whom such matter is referred
because of such officer’s knowledge of and familiarity with the particular subject.

“Restricted Payment”: Means (a) any dividend or other distribution, direct or indirect, on
account of any Equity Interest of ART or any Consolidated Subsidiary now or hereafter outstanding,
except a dividend payable solely in Equity Interests of identical class to the holders of that
class; (b) any redemption, conversion, exchange, retirement, sinking fund or similar payment,
purchase or other acquisition for value, direct or indirect, of any Equity Interest of ART or any
Consolidated Subsidiary now or hereafter outstanding; and (c) any payment made to retire, or to
obtain the surrender of, any outstanding warrants, options or other rights to acquire any Equity
Interest of ART or any Subsidiary now or hereafter outstanding.

“Retained Interest”: (a) With respect to any Mortgage Asset with an unfunded commitment on
the part of the Seller, all of the obligations, if any, to provide additional funding or
contributions with respect to such Eligible Asset, and, (b) with respect to any Eligible Asset that
is transferred by the Seller to the Purchaser or its designee, (i) all of the obligations, if any,
of the agent(s) under the documentation evidencing such Eligible Asset and (ii) the applicable
portion of the interests, rights and obligations under the documentation evidencing such Eligible
Asset that relate to such portion(s) of the Indebtedness that is owned by another lender or is
being retained by the Seller pursuant to clause (a) of this definition.

“S&P”: Standard & Poor’s, a division of The McGraw Hill Companies, Inc., and any successor
thereto.

“SEC”: Defined in Subsection 13.19(a) of this Agreement.

“Secured Parties”: (i) VFCC, (ii) the Swingline Purchaser, (iii) all other Purchasers,
(iv) the Deal Agent, (v) the Liquidity Banks, (vi) the Liquidity Agent and (vii) successors and
assigns of any of the foregoing.

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“Security Agreement”: With respect to any Mortgage Asset, any contract, instrument or
other document related to security for repayment thereof (other than the related Mortgage, Mortgage
Note, Mezzanine Note or any other note, certificate or instrument) executed by the Borrower and/or
others in connection with such Mortgage Asset, including, without limitation, any security
agreement, UCC financing statement, Liens, warranties, guaranty, title insurance policy, hazard
insurance policy, chattel mortgage, letter of credit, accounts, bank accounts or certificates of
deposit or other pledged accounts, and any other documents and records relating to any of the
foregoing.

“Seller”: Individually and collectively as the context requires, ARF, Arbor Realty, ARSR
Tahoe, any Co–Seller and any other Person that becomes a seller under the Repurchase Documents
(together with their successors and permitted assigns), with each Seller being jointly and
severally liable as a Seller under this Agreement and the other Repurchase Documents.

“Seller Asset Schedule”: Defined in the Custodial Agreement.

“Seller–Related Obligations”: Any obligations, liabilities and/or Indebtedness of the
Seller hereunder and under any other arrangement between the Seller, the Guarantor or an Affiliate
of the Seller or the Guarantor, on the one hand, and the Deal Agent, the Purchaser, the Secured
Parties, Atlas Capital Funding, Ltd. or any Affiliate of the foregoing and/or any commercial paper
conduit for which Wachovia or an Affiliate or Subsidiary of Wachovia acts as a liquidity provider,
administrator or agent, on the other hand, including, without limitation, such obligations,
liabilities and/or Indebtedness under (i) the Bank Repurchase Facility (if any) and (ii) the
Working Capital Facility.

“Seller’s Release Letter”: Defined in Subsection 3.2(l) of this Agreement.

“Servicer”: A Person (other than the Seller) servicing all or a portion of the Purchased
Assets under a Servicing Agreement, which Servicer shall be acceptable to the Deal Agent in its
reasonable discretion.

“Servicer Account”: Any account established by a Servicer or a PSA Servicer in connection
with the servicing of the Purchased Assets.

“Servicer Default”: Defined in Section 6.15 of this Agreement.

“Servicer Redirection Notice”: The notice from the Seller to a Servicer, substantially in
the form of Exhibit VIII attached hereto.

“Servicing Agreement”: An agreement entered into by the Seller and a third party for the
servicing of the Purchased Assets, the form and substance of which has been approved in writing by
the Deal Agent in its reasonable discretion.

“Servicing Fee”: Defined in Section 6.12 of this Agreement.

“Servicing File”: With respect to each Purchased Asset, the file retained by the Seller
consisting of the originals of all documents in the Mortgage Asset File that are not delivered to
the Custodian and copies of all documents in the Mortgage Asset File set forth in Section
3.1 of the Custodial Agreement.

“Servicing Records”: Defined in Section 6.2 of this Agreement.

“SIPA”: Defined in Subsection 13.19(a) of this Agreement.

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“Solvent”: As to any Person at any time, having a state of affairs such that all of the
following conditions are met: (a) the fair value of the Property of such Person is greater than the
amount of such Person’s liabilities (including disputed, contingent and unliquidated liabilities)
as such value is established and liabilities evaluated for purposes of Section 101(32) of the
Bankruptcy Code; (b) the present fair salable value of the Property of such Person in an orderly
liquidation of such Person is not less than the amount that will be required to pay the probable
liability of such Person on its debts as they become absolute and matured; (c) such Person is able
to realize upon its Property and pay its debts and other liabilities (including disputed,
contingent and unliquidated liabilities) as they mature in the normal course of business; (d) 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; and (e) 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 Property would constitute unreasonably small capital.

“Sub–Limit”: With respect to the characteristics of the Mortgage Assets (whether such
Mortgage Assets are existing Purchased Assets or Mortgage Assets acquired in the future):

          (a) the aggregate Purchase Price for all outstanding Transactions involving Junior Interests
shall not exceed 75% of the Maximum Amount;

          (b) the aggregate Purchase Price for all outstanding Transactions involving Mezzanine Loans
shall not exceed 60% of the Maximum Amount;

          (c) the aggregate Purchase Price for all outstanding Transactions involving Ground Leases
shall not exceed 25% of the Maximum Amount;

          (d) the aggregate Purchase Price for all outstanding Transactions involving hotels shall not
exceed 25% of the Maximum Amount;

          (e) the aggregate Purchase Price for all outstanding Transactions involving Preferred Equity
Interests shall not exceed 15% of the Maximum Amount; and

          (f) the sum of the aggregate Purchase Price and related Retained Interest for all outstanding
Transactions involving Condominium Loans and Land Loans shall not exceed 20% of the Maximum Amount.

“Subsidiary”: With respect to any Person, any corporation, partnership, limited liability
company or other entity of which at least a majority of the securities or other ownership interests
having by the terms thereof ordinary voting power to elect a majority of the board of directors or
other Persons performing similar functions of such corporation, partnership, limited liability
company or other entity (irrespective of whether or not at the time securities or other ownership
interests of any other class or classes of such corporation, partnership or other entity shall have
or might have voting power by reason of the happening of any contingency) is at the time directly
or indirectly owned or controlled by such Person or one or more Subsidiaries of such Person.

“Swingline Availability”: The positive difference between the Swingline Maximum Amount and
the aggregate Purchase Price of all outstanding Transactions funded by the Swingline Purchaser as
Swingline Purchases.

“Swingline Fee”: Defined in the Fee Letter.

“Swingline Funding Request”: Defined in Section 2.16 of this Agreement.

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“Swingline Maximum Amount”: 10% of the then Maximum Amount, as such percentage may be
increased in the Swingline Purchaser’s discretion.

“Swingline Purchase”: The purchase of an Eligible Asset from the Seller by the Swingline
Purchaser pursuant to the provisions of Articles II and III of this Agreement.

“Swingline Purchaser”: Wachovia Bank, National Association, together with its successors
and assigns.

“Table Funded Purchased Asset”: A Purchased Asset which is sold to the Purchaser or its
designee simultaneously with the origination or acquisition thereof, which origination or
acquisition, pursuant to the Seller’s request, is financed with the Purchase Price and paid
directly to a title company or other settlement agent, in each case, approved in writing by the
Deal Agent in its sole discretion, for disbursement to the parties entitled thereto in connection
with such origination or acquisition. A Purchased Asset shall cease to be a Table Funded Purchased
Asset after the Custodian has delivered a Trust Receipt (along with a completed Mortgage Asset File
Checklist attached thereto) to the Deal Agent certifying its receipt of the Mortgage Asset File
therefor. A Preferred Equity Interest may not be purchased as a Table Funded Purchased Asset
unless the Deal Agent in its discretion otherwise consents in writing.

“Table Funded Trust Receipt”: A Trust Receipt in the form of Annex 2–B to the
Custodial Agreement.

“Tangible Net Worth”: As of a particular date:

          (a) all amounts that would be included under stockholder equity (or the equivalent) on a
balance sheet of ART and its Consolidated Subsidiaries at such date determined in accordance with
GAAP, less

          (b) in each case with respect to ART and its Consolidated Subsidiaries (i) amounts owing to
ART from Affiliates, or from officers, employees, partners, members, directors, shareholders or
other Persons similarly affiliated with ART or its respective Affiliates (excluding (x) any loans
held by a CDO Subsidiary, (y) loans to an Affiliate of ART in which ART or a Consolidated
Subsidiary of ART has a direct equity interest in such Affiliate, which loans have been negotiated
on an arm’s length basis and contain terms no more favorable than market terms and provisions, or
(z) any loan to which the Deal Agent in its discretion has consented in writing to its exclusion
from clause (b)(i) of this definition of Tangible Net Worth), (ii) intangible assets of
ART, as determined in accordance with GAAP, (iii) prepaid taxes and expenses, (iv) unamortized
hedging positions under Derivatives Contracts, and (v) (without duplication) Related Party Loans.

“Tangible Total Assets”: Total Assets less, in each case with respect to ART and
its Consolidated Subsidiaries, (i) amounts owing to ART from Affiliates, or from officers,
employees, partners, members, directors, shareholders or other Persons similarly affiliated with
ART or its respective Affiliates (excluding (x) any loans held by a CDO Subsidiary, (y) loans to an
Affiliate of ART in which ART or a Consolidated Subsidiary of ART has a direct equity interest in
such Affiliate, which loans have been negotiated on an arm’s length basis and contain terms no more
favorable than market terms and provisions, or (z) any loan to which the Deal Agent in its
discretion has consented in writing to its exclusion from clause (i) of this definition of
Tangible Total Assets, (ii) intangible assets of ART, as determined in accordance with GAAP, (iii)
prepaid taxes and expenses, (v) unamortized hedging positions under Derivatives Contracts, and (vi)
(without duplication) Related Party Loans.

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“Taxes”: Any present or future taxes, levies, imposts, duties, charges, assessments or
fees of any nature (including interest, penalties, and additions thereto) that are imposed by any
Governmental Authority.

“Test Period”: (i) With respect to Subsection 5.1(ff) of this Agreement, the
cumulative calendar quarters for the applicable calendar year, (ii) with respect to Subsection
5.1(gg) of this Agreement, the immediately preceding four (4) calendar quarters, and (iii) for
all other purposes under the Repurchase Documents, the immediately preceding calendar quarter.

“Title Exception”: Defined in Schedule 1, Part I.

“Total Assets”: Total assets of ART and its Consolidated Subsidiaries, determined in
accordance with GAAP.

“Total Liabilities”: Means all Indebtedness and Contingent Liabilities of any Person
(without duplication) and all Subsidiaries thereof determined on a consolidated basis.

“Toxic Mold”: Any mold or fungus at any Property which is a type that (i) might pose a
significant risk to human health or the environment or (ii) that would negatively impact any
Property.

“Transaction”: Defined in Section 2.1 of this Agreement.

“Transaction Request”: Defined in Subsection 2.2(a) of this Agreement.

“Transfer Documents” The documents executed by the Seller with respect to a Purchased
Asset which transfer title to such Purchased Asset to the Purchaser or its designee, including,
without limitation, an Assignment, any Assignment of Mortgage and UCC–3 assignments.

“Transferee”: Defined in Subsection 13.16(a) of this Agreement.

“Transferor”: The seller of mortgage assets under a Purchase Agreement.

“True Sale Opinion”: A “true sale” opinion of outside counsel to the Seller in form and
substance satisfactory to the Deal Agent.

“Trust Receipt”: Defined in the Custodial Agreement.

“Type”: With respect to a Mortgage Asset, such Mortgaged Property’s classification as one
of the following: multifamily, retail, office, industrial, hotel or self–storage facility.

“UCC–9 Policy”: Defined in Schedule 1, Part II.

“UCC Financing Statement”: Individually and collectively, as the context requires, (i) a
financing statement on Form UCC–1 or the proper national UCC form naming the Deal Agent as agent
for the Secured Parties as the “Secured Party” and the Seller as the “Debtor” and describing the
Purchased Items and other collateral and (ii) a financing statement on Form UCC–1 or the proper
national UCC form naming the Deal Agent as agent for the Secured Parties as the “Secured Party” and
the Pledgor or other debtor, as applicable, as the “Debtor” and describing the Pledged Collateral
and/or other collateral, as applicable.

“Unconsolidated Affiliates”: Means, with respect to any Person, any other Person in whom
such Person holds an Investment, which Investment is accounted for in the financial statements of
such Person on an

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equity basis of accounting and whose financial results would not be consolidated under GAAP with
the financial results of such Person on the consolidated financial statements of such Person.

“Underlying Mortgaged Property”: (a) In the case of a Whole Loan, the Mortgaged Property
securing the Whole Loan, (b) in the case of a Junior Interest, the Mortgaged Property securing such
Junior Interest (if the Junior Interest is of the type described in clause (a) of the
definition thereof), or the Mortgaged Property securing the mortgage loan in which such Junior
Interest represents a junior participation (if the Junior Interest is of the type described in
clause (b) of the definition thereof), (c) in the case of a Mezzanine Loan, the Mortgaged
Property that is held by the Person the Equity Interests of which are pledged as collateral
security for such Mezzanine Loan, (d) in the case of a Bridge Loan, a Condominium Loan or a Land
Loan, depending on such Bridge Loan’s, a Condominium Loan’s or a Land Loan’s classification as a
Whole Loan, Junior Interest or Mezzanine Loan, the Underlying Mortgaged Property for the Whole
Loan, Junior Loan or Mezzanine Loan, as applicable, and (e) in the case of a Preferred Equity
Interest, the Mortgaged Property that is owned by the Preferred Equity Grantor.

“Underwriting Package”: Any internal document prepared by the Seller for its evaluation of
a Mortgage Asset, to include at a minimum the data required in the relevant Confirmation. In
addition, with respect to any Mortgage Asset, the Underwriting Package shall include, to the extent
applicable, (i) a copy of the appraisal, (ii) the current rent roll, (iii) a minimum of two (2)
years of property level financial statements to the extent available, (iv) the current financial
statement of the Borrower on the Commercial Real Estate Loan, (vi) the complete Mortgage Asset
File, (vii) any financial analysis, site inspection, market studies and any other diligence
conducted by the Seller, and (viii) such further documents or information as the Deal Agent may
request.

“Uniform Commercial Code” or “UCC”: The Uniform Commercial Code as in effect on
the date hereof in the State of New York; provided that if by reason of mandatory provisions of
Applicable Law, the perfection or the effect of perfection or non–perfection of the security
interest in any Purchased Items is governed by the Uniform Commercial Code as in effect in a
jurisdiction other than New York, “Uniform Commercial Code” shall mean the Uniform Commercial Code
as in effect in such other jurisdiction for purposes of the provisions hereof relating to such
perfection or effect of perfection or non–perfection.

“United States”: The United States of America.

“Unused Fee”: The “Unused Fee” payable under the Fee Letter.

“USA Patriot Act”: The “United and Strengthening America by providing Tools Required to
Intercept and Obstruct Terrorism Act of 2001” (Public Law 107–56), as amended from time to time.

“VFCC”: Defined in the Preamble of this Agreement.

“Wachovia”: Wachovia Bank, National Association, a national banking association in its
individual capacity, and its successors and assigns.

“Wachovia Assets”: Any Mortgage Asset issued or extended by Wachovia Corporation or an
Affiliate of Wachovia Corporation.

“Warehouse Lender’s Release Letter”: Defined in Subsection 3.2(l) of this
Agreement.

“WCM”: Defined in the Preamble of this Agreement.

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“Whole Loan”: A performing Commercial Real Estate whole loan secured by a first priority
security interest in the Underlying Mortgaged Property.

“Working Capital Facility”: That certain facility which may be entered into and be
evidenced by, among other agreements, the Revolving Loan Agreement, to be entered into among
Wachovia, Arbor Realty Trust, Inc., Arbor Realty GPOP, Inc., Arbor Realty LPOP, Inc., Arbor Realty
Limited Partnership, Arbor Realty SR, Inc., Arbor Realty Collateral Management, LLC, each other
party that becomes a party thereto, each of the guarantors that becomes a party thereto, and each
other lender that becomes a party thereto, as such agreements are amended, modified, restated,
replaced, waived, substituted, supplemented or extended from time to time.

      Section 1.2 Other Terms.

      All accounting terms used but not specifically defined herein shall be construed in accordance
with GAAP. All terms used in Article 9 of the UCC in the State of New York, and used but not
specifically defined herein, are used herein as defined in such Article 9.

      Section 1.3 Computation of Time Periods.

      Unless otherwise stated in this Agreement, in the computation of a period of time from a
specified date to a later specified date, the word “from” means “from and including” and the words
“to” and “until” each mean “to but excluding.”

     Section 1.4 Interpretation.

     In each Repurchase Document, unless a contrary intention appears:

     (i) the singular number includes the plural number and vice versa;

     (ii) reference to any Person includes such Person’s successors and assigns but, if
applicable, only if such successors and assigns are permitted by the Repurchase Documents;

     (iii) reference to any gender includes each other gender;

     (iv) reference to day or days without further qualification means calendar days;

     (v) reference to any time means Charlotte, North Carolina time;

     (vi) the term “including” means “including without limitation;”

     (vii) the term “through” means “from and including;”

     (viii) unless the context clearly requires or the language provides otherwise,
reference to a section, subsection, paragraph, subparagraph, clause, exhibit, schedule,
annex, appendix, attachment, rider or other attachment means a section, subsection,
paragraph, subparagraph, clause, exhibit, schedule, annex, appendix, attachment, rider or
other attachment of or to this Agreement;

     (ix) to the extent this Agreement uses or requires different limitations, tests or
measurements to regulate the same or similar matters, all such limitations, tests and
measurements are cumulative and shall each be performed in accordance with their terms;

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     (x) unless the context clearly requires or the language provides otherwise, the words
“herein,” “hereof,” “hereunder” or similar words refer to this Agreement as a whole and not
to any particular provision of this Agreement;

     (xi) reference to any agreement (including any Repurchase Document), document or
instrument means such agreement, document or instrument as amended, modified, restated,
replaced, waived, substituted, supplemented or extended from time to time in accordance with
the terms thereof and, if applicable, the terms of the other Repurchase Documents, and
reference to any promissory note, certificate, instrument or trust receipt includes any
promissory note, certificate, instrument or trust receipt that is an extension or renewal
thereof or a substitute or replacement therefor;

     (xii) reference to any Applicable Law means such Applicable Law as amended, modified,
codified, replaced or reenacted, in whole or in part, and in effect from time to time,
including rules and regulations promulgated thereunder and reference to any Section or other
provision of any Applicable Law means that provision of such Applicable Law from time to
time in effect and constituting the substantive amendment, modification, codification,
replacement or reenactment of such Section or other provision;

     (xiii) unless otherwise expressly provided in this Agreement, reference to any notice,
request, approval, consent or determination provided for, permitted or required under the
terms of the Repurchase Documents with respect to the Seller, the Guarantor, the Purchaser,
the Deal Agent or any other Secured Party means, in order for such notice, request,
approval, consent or determination to be effective hereunder, such notice, request, approval
or consent must be in writing; and

     (xiv) reference herein or in any Repurchase Document to the Purchaser’s or the Deal
Agent’s discretion shall mean, unless otherwise stated herein or therein, the Purchaser’s or
the Deal Agent’s (as the case may be) sole and absolute discretion, and the exercise of such
discretion shall be final and conclusive. In addition, whenever the Purchaser or the Deal
Agent has a decision or right of determination or request, exercises any right given to it
to agree, disagree, accept, consent, grant waivers, take action or no action or to approve
or disapprove, or any arrangement or term is to be satisfactory or acceptable to or approved
by (or any similar language or terms) the Purchaser or the Deal Agent (as the case may be),
the decision of the Purchaser or the Deal Agent with respect thereto shall be in the sole
and absolute discretion of the Purchaser or the Deal Agent (as the case may be), and such
decision shall be final and conclusive, except as may be otherwise specifically provided
herein.

ARTICLE II

PURCHASE OF ELIGIBLE ASSETS

      Section 2.1 Purchase and Sale.

      Subject to the terms and conditions hereof, from time to time during the Facility Period and
at the written request of the Seller, the parties hereto may enter into transactions in which the
Seller transfers Eligible Assets to the Purchaser or its designee in a sales transaction against
the transfer of funds by the Purchaser representing the Purchase Price for such Purchased Assets,
with a simultaneous agreement by the Purchaser or its designee to transfer to the Seller and the
Seller to repurchase such Purchased Assets in

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a repurchase transaction at a date certain not later than the Facility Maturity Date, against
the transfer of funds by the Seller representing the Repurchase Price for such Purchased Assets.
Each such transaction hereunder, including, without limitation, a Swingline Purchase, shall be
referred to herein as a “Transaction” and shall be governed by this Agreement, unless
otherwise agreed in writing.

          Section 2.2 Transaction Mechanics; Related Matters.

          (a) From time to time during the Facility Period, in the discretion of the Deal Agent, the
Purchaser or its designee may purchase from the Seller the Seller’s rights and interests (but none
of its obligations) under certain Eligible Assets; provided, however, at no time
shall the aggregate Purchase Price of the outstanding Transactions and any proposed Transactions
exceed the Maximum Amount. The Seller shall request a Transaction by delivering to the Deal Agent
(with a copy to the Custodian), via Electronic Transmission, an executed request in the form of
Exhibit IV attached hereto (a “Transaction Request”), a Seller Asset Schedule and
an Underwriting Package. Each Transaction Request shall be irrevocable. The Transaction Request
shall set forth, among other things, (i) the proposed Purchase Date, that, except with respect to
the initial Transaction, shall be at least, (A) in the case of Non–Wachovia Assets, twelve (12)
Business Days (in the case of each individual Eligible Asset identified in a Transaction Request
plus twelve (12) additional Business Days for each additional Eligible Asset in excess
thereof identified in a Transaction Request), and, (B) in the case of Wachovia Assets, seven (7)
Business Days (in the case of each individual Eligible Asset identified in a Transaction Request
plus seven (7) additional Business Days for each additional Eligible Asset in excess
thereof identified in a Transaction Request) after the delivery of the Transaction Request, the
Seller Asset Schedule, the complete Underwriting Package and any supplemental requests (requested
orally or in writing) relating to the proposed Eligible Assets, (ii) the proposed Purchase Price,
which shall be a minimum amount of $5,000,000 for the initial advance of the Purchase Price and
$500,000 for all subsequent advances of the Purchase Price, (iii) the proposed Repurchase Date,
(iv) the applicable Class and Type for each Mortgage Asset for which the Seller is requesting the
Transaction, and (v) additional terms or conditions not inconsistent with this Agreement. The Deal
Agent shall have, (1) in the case of Non–Wachovia Assets, ten (10) Business Days (in the case of
each individual Eligible Asset identified in a Transaction Request plus ten (10) additional
Business Days for each additional Eligible Asset in excess thereof identified in a Transaction
Request), and, (2) in the case of Wachovia Assets, five (5) Business Days (in the case of each
individual Eligible Asset identified in a Transaction Request plus five (5) additional
Business Days for each additional Eligible Asset in excess thereof identified in a Transaction
Request) from the receipt thereof to review the Transaction Request, the Seller Asset Schedule, the
Underwriting Package and any supplemental requests (requested orally or in writing) relating to the
proposed Eligible Assets.

          (b) The Deal Agent shall notify the Seller in writing of the Deal Agent’s tentative approval
(and the proposed Purchase Price for each Eligible Asset) or final disapproval of each proposed
Eligible Asset within, (i) in the case of Non–Wachovia Assets, ten (10) Business Days (in the case
of each individual Eligible Asset identified in a Transaction Request plus ten (10)
additional Business Days for each additional Eligible Asset in excess thereof identified in a
Transaction Request) and, (ii) in the case of Wachovia Assets, five (5) Business Days (in the case
of each individual Eligible Asset identified in a Transaction Request plus five (5)
additional Business Days for each additional Eligible Asset in excess thereof identified in a
Transaction Request) after its receipt of the Transaction Request, the Seller Asset Schedule, the
complete Underwriting Package and any supplemental requests (requested orally or in writing)
relating to such proposed Eligible Asset. Unless the Deal Agent notifies the Seller in writing of
the Deal Agent’s approval of such proposed Eligible Asset within the applicable period, the Deal
Agent shall be deemed not to have approved such proposed Eligible Asset.

          (c) Provided that the Deal Agent on behalf of the Purchaser has tentatively agreed to purchase
the Eligible Assets described in the Transaction Request and the proposed Purchase Price is

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acceptable to the Seller, the Seller shall forward to the Deal Agent, via Electronic
Transmission, at least one (1) Business Day prior to the requested Purchase Date (which must be
received by the Deal Agent no later than 12:00 noon one (1) Business Day prior to the requested
Purchase Date) an executed confirmation of each Transaction, substantially in the form of
Exhibit II attached hereto (a “Confirmation”); provided, however,
if the Seller has requested in writing that the Swingline Purchaser fund the Eligible Asset on an
expedited basis, the executed Confirmation for the related Eligible Asset shall be delivered to the
Deal Agent no later than 2:00 p.m. on the related Purchase Date (unless such time period is
modified by the Swingline Purchaser in its discretion). The Confirmation shall specify any
additional terms or conditions of the Transaction not inconsistent with this Agreement. The
Confirmation shall be irrevocable. The delivery of the Confirmation to the Deal Agent shall be
deemed to be a certification by the Seller that, among other things, all conditions precedent to
such Transaction set forth in Article III have been satisfied (except the Deal Agent’s
consent). Unless otherwise agreed in writing, upon receipt of the Confirmation, the Purchaser or
its designee may, in the Deal Agent’s discretion, agree to enter into the requested Transaction
with respect to an Eligible Asset, and such agreement shall be evidenced by the Deal Agent’s
signature on the Confirmation. Any Confirmation executed by the Deal Agent shall be deemed to have
been received by the Seller on the date actually received by the Seller.

          (d) Upon receipt of the Confirmation executed by the Deal Agent, (i) the Seller shall release
or cause to be released to the Custodian in accordance with the Custodial Agreement (1) in the case
of a Non–Table Funded Purchased Asset, no later than 11:00 a.m. two (2) Business Days prior to the
requested Purchase Date, and (2) in the case of a Table Funded Purchased Asset or a Swingline
Purchase, no later than 1:00 p.m. three (3) Business Days following the applicable Purchase Date,
the Mortgage Asset File pertaining to each Eligible Asset to be purchased by the Purchaser or its
designee, and (ii) the Seller shall deliver to the Custodian, in connection with the applicable
delivery under clause (i) above, a Custodial Identification Certificate and a Mortgage
Asset File Checklist required under Section 3.2 of the Custodial Agreement. With respect
to Preferred Equity Interests, the Seller shall also deliver, before the time required for delivery
of a Trust Receipt, all documents required by the Deal Agent pursuant to the second to the last
sentence of Subsection 3.2(a) of the Custodial Agreement.

          (e) Except as set forth in Section 2.3, each Confirmation, together with this
Agreement, shall constitute conclusive evidence of the terms agreed between the Deal Agent and the
Seller with respect to the Transaction to which the Confirmation relates, and the Seller’s
acceptance of the related proceeds shall constitute the Seller’s agreement to the terms of such
Confirmation. It is the intention of the parties that each Confirmation shall not be separate from
this Agreement but shall be made a part of this Agreement. To the extent of a conflict between
this Agreement and the related Confirmation, the Confirmation shall control.

          (f) Subject to the terms and conditions of this Agreement, during the term of this Agreement,
the Seller may sell to the Purchaser or its designee, repurchase from the Purchaser or its designee
and resell to the Purchaser or its designee Eligible Assets hereunder.

          (g) In no event shall a Transaction be entered into when any Default or Event of Default has
occurred and is continuing or when the Repurchase Date for such Transaction would be later than the
Facility Maturity Date.

          (h) Pursuant to the Custodial Agreement, the Custodian shall deliver to the Deal Agent and the
Seller by 11:00 a.m. on the Purchase Date for each Non–Table Funded Purchased Asset a Trust Receipt
(along with a completed Mortgage Asset File Checklist attached thereto) and an Asset Schedule and
Exception Report relating to the Basic Mortgage Asset Documents with respect to the Eligible Assets
that the Seller has requested Purchaser purchase on such Purchase Date. With respect to each Table
Funded Purchased Asset and each Swingline Purchase, the Seller shall cause the Bailee to deliver to
the

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Custodian with a copy to the Deal Agent no later than 10:00 a.m. on the Purchase Date by
facsimile the related Basic Mortgage Asset Documents, the insured closing letter (if any), the
escrow instructions (if any), a fully executed Bailee Agreement, a Bailee’s Trust Receipt issued by
the Bailee thereunder and such other evidence satisfactory to the Deal Agent in its discretion that
all documents necessary to effect a transfer of the Purchased Assets to the Purchaser or its
designee have been delivered to Bailee. With respect to each Table Funded Purchased Asset and each
Swingline Purchase, the Custodian shall deliver to the Deal Agent a Table Funded Trust Receipt no
later than 1:00 p.m. on the Purchase Date, which documents shall be acceptable to the Deal Agent in
its sole discretion. In the case of a Table Funded Purchased Asset or a Swingline Purchase, on the
second (2nd) Business Day following the Custodian’s receipt of the related Mortgage Loan Documents
comprising the Mortgage Asset File, the Custodian shall deliver to the Deal Agent a Trust Receipt
(along with a completed Mortgage Asset File Checklist attached thereto) certifying its receipt of
the documents required to be delivered pursuant to the Custodial Agreement, together with an Asset
Schedule and Exception Report relating to the Basic Mortgage Asset Documents, with any Exceptions
identified by the Custodian as of the date and time of delivery of such Asset Schedule and
Exception Report. The Custodian shall deliver to the Deal Agent an Asset Schedule and Exception
Report relating to all of the Mortgage Loan Documents within five (5) Business Days of its receipt
of the Mortgage Asset Files. Subject to the provisions of this Article II and Article
V of the Custodial Agreement, the Purchase Price for each Eligible Asset will be made available
to the Seller in accordance with Subsection 2.2(i).

          (i) On each Purchase Date, the Deal Agent shall, upon satisfaction of the applicable
conditions set forth in this Section 2.2 and Article III, make available to the
Seller in same day funds to the Operating Account an amount equal to the least of (i) the Purchase
Price for such Transaction(s), (ii) an amount equal to the Availability on such Purchase Date,
(iii) in the case of a Swingline Purchase, an amount equal to the Swingline Availability on such
Purchase Date or (iv) the Maximum Amount.

          (j) In the case of individual Transactions terminable upon demand (if any), such demand shall
be made by the Deal Agent or the Seller no later than such time as is customary in accordance with
market practice, by telephone or otherwise, at least two (2) Business Days prior to the Business
Day on which such termination will be effective. The Seller shall repurchase the Purchased Assets
by no later than 1:00 p.m. on the Repurchase Date. On a Repurchase Date, termination of a
Transaction will be effected by transfer to the Seller or its designee of the Purchased Assets
after the Deal Agent as agent for the Secured Parties receives the Repurchase Price for the
Purchased Asset. In connection with the termination of a Transaction, any Income in respect of any
Purchased Assets received by the Purchaser and not previously credited or transferred to, or
applied to the obligations of, the Seller pursuant to Section 2.8 shall be netted against
the Repurchase Price by the Deal Agent as agent for the Secured Parties. To the extent a net
amount is owed to one party, the other party shall pay such amount to such party.

          (k) Notwithstanding anything contained in this Agreement to the contrary, the weighted average
Advance Rates for all Purchased Assets (on a portfolio basis), as determined by the Deal Agent in
its discretion, shall not exceed the advance rates for a CDO securitization transaction that
involves similar Mortgage Assets and has an Investment Grade Rating. The Deal Agent may, in its
discretion, adjust any or all Advance Rates set forth in Schedule 1 to the Fee Letter (or
the Confirmations as applicable) with respect to the existing Purchased Assets to such Advance
Rates which, when considered on a portfolio basis, would result in an Investment Grade Rating in a
rated CDO securitization transaction for such Purchased Assets, and, if such adjustment is made,
the Seller shall make principal payments to the Deal Agent as necessary so that the Purchase Price
outstanding for all Purchased Assets is equal to or less than the Purchase Price for all Purchased
Assets based on the adjusted Advance Rates, which principal payments shall be applied to the
outstanding Purchase Price of one (1) or more Purchased Assets, as

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determined by the Deal Agent in its discretion, and, in connection with such principal
payments, pay any Price Differential due thereon and any Breakage Costs payable in connection
therewith.

          (l) Notwithstanding anything contained in this Agreement to the contrary, in the event the
Purchaser or its designee acquires (whether simultaneously or on separate occasions) from the
Seller the senior and junior positions with respect to certain Commercial Real Estate and the
Purchased Asset(s) that are senior in priority have been repurchased by the Seller or repaid or
prepaid by the related Borrower, (i) the Asset Value of the junior–most Purchased Asset(s) shall be
reduced to zero (0) and (ii) the Deal Agent as agent for the Secured Parties shall not release or
reassign the Purchased Asset(s) (including any Income related thereto) that are senior in priority
to the junior–most Purchased Asset(s) that the Purchaser or its designee continues to own
(regardless of whether the outstanding Purchase Price and related amounts due have been paid in
full) until the junior–most Purchased Asset(s) is repurchased and the outstanding Purchase Price,
any accrued and unpaid Price Differential and any related Breakage Costs are paid in full;
provided, however, if (A) the senior Purchased Asset(s) is repaid or prepaid by the
related Borrower, (B) the Deal Agent has reevaluated the remaining junior–most Purchased Asset(s),
including, without limitation, a reassessment and possible redetermination of the Asset Value of
such Purchased Asset, and, based on the reevaluation, the Deal Agent is satisfied in its discretion
with continuing to hold the junior–most Purchased Asset(s) as is or upon certain specified
conditions, including, without limitation, assigning a new Asset Value to such asset, which
approval shall be in writing to be effective, and (c) there are no Events of Default, Defaults or
Margin Deficits outstanding (each to be evidenced by a Compliance Certificate), then the Deal Agent
will consent in writing to and effect the release of the senior Purchased Asset(s).

          (m) With respect to any Mortgage Asset or collateral for a Mortgage Asset that is an
uncertificated security (as defined in the UCC), securities entitlement (as defined in the UCC) or
is held in a securities account (as defined in the UCC), the Seller shall provide to the Deal Agent
as agent for the Secured Parties a control agreement, which shall be acceptable to the Deal Agent
in its discretion and shall be delivered to the Custodian under the Custodial Agreement, executed
by the issuer of the Mortgage Asset or the collateral for the Mortgage Asset or the related
securities intermediary (as defined in the UCC), as applicable, granting control (as defined in the
UCC) of such Mortgage Asset or collateral for such Mortgage Asset to the Deal Agent as agent for
the Secured Parties and providing that, after an Event of Default, the Deal Agent shall be entitled
to notify the issuer or securities intermediary, as applicable, that such issuer or securities
intermediary shall comply exclusively with the instructions or entitlement orders (as defined in
the UCC), as applicable, of the Deal Agent as agent for the Secured Parties without the consent of
the Seller or any other Person and no longer follow the instructions or entitlement orders, as
applicable, of the Seller or any other Person (other than the Deal Agent as agent for the Secured
Parties).

          Section 2.3 Reduction of Maximum Amount; Optional Repurchases.

          (a) In the event that Seller shall have increased the Maximum Amount above $425,000,000, the
Seller shall have the right which may be exercised by the Seller one or more times during the
Facility Period, upon at least two (2) Business Days’ prior written notice to the Deal Agent, which
notice shall be received no later than 3:00 p.m. two (2) Business Days, as applicable, in advance
of the reduction, to reduce in part the portion of the Maximum Amount that exceeds the greater of
(i) $425,000,000 and (ii) the sum of the aggregate Purchase Price for all Transactions outstanding,
accrued Price Differential and Breakage Costs; provided, however, that each partial
reduction of the Maximum Amount shall be in an aggregate amount equal to $1,000,000 or an integral
multiple thereof. Thereafter, the Maximum Amount may again, pursuant to a written request of the
Seller, be increased one or more times during the Facility Period in the Purchaser’s discretion
(but in all events subject to the Purchaser obtaining internal credit and other approvals) up to
but not in the excess of $750,000,000. Each increase or reduction of the Maximum

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Amount under this Subsection 2.3(a) or under the definition of Maximum Amount shall be
documented in writing and signed by the parties hereto and, in connection therewith, the Deal Agent
shall send an eligible liquidity notice to each applicable Rating Agency.

          (b) Subject to the requirements of Subsection 2.2(l), the Seller may, upon two (2)
Business Days’ prior written notice to the Deal Agent, which notice shall be irrevocable and shall
be received by the Deal Agent no later than 3:00 p.m. two (2) Business Days prior to the reduction
in the Repurchase Price, repurchase Purchased Assets or pay a portion of the Purchase Price
outstanding by remitting to the Collection Account cash in the amount of the Repurchase Price
reduction plus accrued and unpaid Price Differential, any fees due under the Fee Letter and/or the
other Repurchase Documents in connection with such reduction and any related Breakage Costs owed in
connection with such reduction; provided, that each such reduction shall be in a minimum
amount of $500,000. If the Seller intends to make such a repurchase or payment, the Seller shall
give two (2) Business Days’ prior written notice thereof to the Deal Agent, designating the
Purchased Assets to be repurchased or to which such payment is to be applied. If such notice is
given, on receipt of the Repurchase Price (or portion thereof) for the Purchased Assets specified
in such notice, such amount shall be applied to the Purchase Price for the designated Purchased
Assets. The amount of the Purchase Price of the Purchased Assets thus repurchased shall be
available for subsequent Transactions subject to the terms of this Agreement.

          Section 2.4 Extension of Facility Maturity Date and Funding Expiration Date.

          (a) Extension of Facility Maturity Date. At the written request of the Seller
delivered to the Deal Agent no earlier than sixty (60) days and no later than forty–five (45) days
prior to the Facility Maturity Date, the Deal Agent may in its sole discretion grant one extension
of the Facility Maturity Date for a period not to exceed one (1) year by giving written notice of
such extension and the final Facility Maturity Date (the “Final Maturity Date”) to the
Seller no later than fifteen (15) days before the expiration of the Facility Maturity Date. Any
failure by the Deal Agent to deliver such notice of extension shall be deemed to be the Deal
Agent’s determination not to extend the original Facility Maturity Date. An extension of the
Facility Maturity Date is subject to the following requirements: (i) no Default or Event of
Default shall have occurred and be continuing on the date of the request to extend or thereafter to
and including the original Facility Maturity Date, (ii) the Seller shall pay to the Deal Agent as
agent for the Secured Parties an extension fee (“Extension Fee”), payable in quarterly
installments over the term of the extension commencing with the original Facility Termination Date
(or, if such day is not a Business Day, the next Business Day) and on the Payment Date (or, if such
day is not a Business Day, the next Business Day) (the “Extension Fee Payment Date”) of
every third (3rd) month thereafter, calculated as the sum of the products of (A) 10 basis points
and (B) the Purchase Price outstanding on the Extension Fee Payment Date; provided,
however, if the Facility Maturity Date is extended for less than a one (1) year period, the
Extension Fee will be calculated in the same manner except that the period of time over and the
dates on which the Extension Fee is payable shall be adjusted accordingly, (iii) no additional
Transactions shall be permitted to be entered into after the original Facility Maturity Date, (iv)
the Seller must amortize and pay to the Deal Agent as agent for the Secured Parties the aggregate
Repurchase Price for all Transactions then outstanding in quarterly installments over the term of
the extension commencing with the first (1st) Payment Date after the original Facility Maturity
Date and on the Payment Date for each quarter thereafter in the amount of 10% of the aggregate
Repurchase Price for all Transactions outstanding on such Payment Date, with the balance due on the
Final Maturity Date, (v) the Liquidity Agreement is extended for the same term, and, (vi) not later
than the Final Maturity Date, the Seller shall pay to Deal Agent as agent for the Secured Parties
an amount equal to the aggregate Repurchase Price then outstanding, together with the other
Aggregate Unpaids and any other amounts then owing to the Purchaser and the Affected Parties by the
Seller pursuant to this Agreement or any other Repurchase Document. The Seller confirms that the
Deal Agent, in its discretion, without regard to the value or

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performance of the Purchased Assets or any other factor, may elect not to extend the Facility
Maturity Date.

          (b) Extension of Funding Expiration Date. At the written request of the Seller
delivered to the Deal Agent no earlier than sixty (60) calendar days and no later than forty–five
(45) calendar days prior to the Funding Expiration Date, the Deal Agent may in its discretion grant
an extension of the Funding Expiration Date for a period of time not to exceed 364 calendar days by
the Deal Agent giving written notice to the Seller of such extension (if any) and, as applicable,
the extended Funding Expiration Date determined by the Deal Agent (the “Extended Funding
Expiration Date”) no later than fifteen (15) calendar days before the expiration of the Funding
Expiration Date; provided, however, in no event shall the Funding Expiration Date
be extended (i) if a Default or Event of Default shall have occurred on or before the date of the
request to extend or thereafter to and including the Funding Expiration Date or Extended Facility
Expiration Date, as applicable, (ii) to a date that is beyond the Facility Maturity Date (not
including any extensions thereof under Subsection 2.4(a)) and (iii) if the Liquidity
Agreement is not extended for the same term. Any failure by the Deal Agent to deliver such notice
approving of the extension shall be deemed to be the Deal Agent’s determination not to extend the
Funding Expiration Date. The Seller may request an extension of any Extended Funding Expiration
Date under the same terms and conditions as the request to extend the original Funding Expiration
Date. The Seller confirms that the Deal Agent, in its discretion, without regard to the value or
performance of the Purchased Assets or any other factor, may elect not to extend the Funding
Expiration Date.

          Section 2.5 Payment of Price Differential.

          (a) Notwithstanding that the Purchaser and the Seller intend that the Transactions hereunder
be sales to the Purchaser or its designee of the Purchased Assets, the Seller shall pay to the Deal
Agent as agent for the Secured Parties the accreted value of the Price Differential of each
Transaction (each such payment, a “Periodic Advance Repurchase Payment”) on each Payment
Date. The Deal Agent shall deliver to the Seller, via Electronic Transmission, notice of the
required Periodic Advance Repurchase Payment (along with the calculation of the Unused Fee, if any,
and other amounts owed and to be paid under Section 2.8) on or prior to the second (2nd)
Business Day preceding each Payment Date. If the Seller fails to make all or part of the Periodic
Advance Repurchase Payment and the other amounts due by 1:00 p.m. on the Payment Date, the Seller
shall be obligated to pay to the Deal Agent as agent for the Secured Parties (in addition to, and
together with, the Periodic Advance Repurchase Payment and the other amounts due) interest on the
unpaid amounts at a rate per annum equal to the Post–Default Rate (the “Late Payment Fee”)
until the unpaid amounts are received in full by the Deal Agent. If the Periodic Advance
Repurchase Payment includes any estimated Price Differential, the Deal Agent shall recalculate such
Price Differential after the Payment Date and, if necessary, make adjustments to the Periodic
Advance Repurchase Payment amount due on the following Payment Date.

          (b) The Seller shall be responsible for the payment of all Breakage Costs incurred in
connection with any repurchase or prepayment of the Repurchase Price or Price Differential. The
Deal Agent shall deliver to the Seller a statement setting forth the amount and basis of
determination of any Breakage Costs, it being agreed that such statement and the method of its
calculation shall be conclusive and binding upon the Seller absent manifest error. This
Subsection 2.5(b) shall survive termination of this Agreement and the repurchase of all
Purchased Assets subject to Transactions hereunder.

          Section 2.6 Request for Additional Transaction for Excess Margin.

          (a) If, at any time during the Facility Period, the Margin Base exceeds the aggregate Purchase
Price of all Transactions then outstanding, so long as no Default or Event of Default has occurred
and is continuing, the Seller may request an additional Transaction for Excess Margin by

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delivering to the Deal Agent, via Electronic Transmission, by 12:00 noon at least one (1)
Business Day prior to the requested Purchase Date, an executed Request for Additional Transaction
for Excess Margin in the form of Exhibit IX attached hereto (“Request for Additional
Transaction for Excess Margin”); provided, however, that the Purchase Price of
the outstanding Transactions and the Purchase Price set forth in the proposed Request for
Additional Transaction for Excess Margin shall not exceed the Maximum Amount. The Request for
Additional Transaction for Excess Margin shall, among other things, (A) specify (i) the amount of
the additional Purchase Price to be paid by the Purchaser or its designee in respect of the
outstanding Transactions, (ii) the requested Purchase Date, (iii) the Excess Margin with respect to
all outstanding Transactions before giving effect to the requested Transaction, (iv) the remaining
Excess Margin after giving effect to the requested Transaction, (v) the aggregate Purchase Price of
all Transactions outstanding after giving effect to the requested Transaction, and (vi) the Request
for Additional Transaction for Excess Margin equals or exceeds $500,000, and (B) include a
certification that, (x) upon the consummation of the additional Transaction, the Margin Base will
be equal to or greater than the aggregate Purchase Price of all outstanding Transactions, and (y)
all conditions precedent to such Transaction set forth in Articles II and III have
been satisfied. Each Request for Additional Transaction for Excess Margin shall be irrevocable.
For the purposes of this Section 2.6, “Excess Margin” shall be the excess of the
Margin Base over the aggregate Purchase Price of all outstanding Transactions as of the date of
such determination.

          (b) Upon confirming that the Request for Additional Transaction for Excess Margin correctly
reflects the information set forth in Subsection 2.6(a) and that, after giving effect to
the requested Transaction, the amount of the Margin Base would be equal to or greater than the
aggregate Purchase Price of all outstanding Transactions, within one (1) Business Day the Purchaser
or its designee shall remit in accordance with Subsection 2.2(i) an amount equal to the
lesser of (i) the additional Purchase Price set forth in such Request for Additional Transaction
for Excess Margin and (ii) the Availability, and the Deal Agent shall send a revised Confirmation
with respect to such Purchased Assets. In the event that the Deal Agent’s assessment of the Margin
Base would alter the information set forth in any Request for Additional Transaction for Excess
Margin, the Deal Agent shall promptly notify the Seller in writing of such assessment.

          (c) Neither the Purchaser or its designee shall be obligated to remit the additional Purchase
Price requested pursuant to a Request for Additional Transaction for Excess Margin where the Deal
Agent reasonably determines the Margin Base as calculated by the Seller (i) is based on erroneous
information or would result in a Transaction other than in accordance with the terms of this
Agreement, or (ii) does not reflect the Deal Agent’s current determination of Market Value as
provided in the definition thereof.

          Section 2.7 Margin Account Maintenance.

          (a) If at any time the Deal Agent determines (based on such factors as the Deal Agent
determines to rely on its sole discretion, including but not limited to a credit analysis of the
Underlying Mortgaged Properties and the current market conditions for the Mortgage Asset) that the
Margin Base is less than the aggregate Purchase Price for all outstanding Transactions (a
“Margin Deficit”), then the Deal Agent may by notice to the Seller in the form of
Exhibit XII (as such notice is more particularly set forth below, a “Margin Deficit
Notice”) require the Seller to transfer to the Deal Agent as agent for the Secured Parties cash
or Eligible Assets so that the aggregate Asset Value of the Purchased Assets will thereupon equal
or exceed the aggregate Purchase Price for all outstanding Transactions, provided that, prior to or
contemporaneously with the delivery of such Margin Deficit Notice, the Deal Agent has informed the
Seller of the methodology (in reasonable detail) utilized by the Deal Agent to determine such
Margin Deficit. Notwithstanding anything to the contrary in this Agreement, the Seller shall
transfer such cash or Eligible Assets to the Deal Agent’s Account no later than twenty–four (24)
hours after such Margin

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Deficit Notice shall be deemed to have been received under Section 13.2. All cash
transferred to the Deal Agent as agent for the Secured Parties pursuant to this Section 2.7
shall be deposited in the Deal Agent’s Account and shall be attributed to such Transaction as the
Deal Agent shall determine in its sole discretion. Eligible Assets shall be transferred to the
Purchaser or its designee in the same manner as Eligible Assets are transferred under Section
2.2.

          (b) To the extent any such Margin Deficit is the result of a reduction in the Market Value of
any Mortgage Asset, the Seller may dispute the determination of such Market Value by the Deal Agent
pursuant to the provisions of Section 2.10 of this Agreement, provided that no such dispute
shall relieve, waive or delay the Seller’s obligation to timely satisfy the Margin Deficit in
accordance with this Section 2.7. The failure of the Seller to satisfy the Margin Deficit
on a timely basis shall constitute an Event of Default and the Seller shall be precluded from
disputing the Margin Base determined by the Deal Agent. If (i) the Seller satisfies the Margin
Deficit on a timely basis, (ii) the Seller timely satisfies the provisions set forth in Section
2.10 of this Agreement with respect to a dispute of the determination of the Market Value of
any Purchased Asset, and, (iii) pursuant to the terms of such Section 2.10, a revised
Market Value for such Mortgage Asset is determined that (if used in lieu of the Market Value used
by the Purchaser in determining the Margin Base) would have resulted in a reduction of the Margin
Deficit paid by the Seller, then the Deal Agent shall promptly remit the difference to the Seller
without any interest or other amounts due thereon.

          (c) The Deal Agent’s election, in its discretion, not to deliver a Margin Deficit Notice at
any time there is a Margin Deficit shall not in any way limit or impair its right to deliver a
Margin Deficit Notice at any time a Margin Deficit exists.

Section 2.8 Income Payments.

          The Deal Agent as agent for the Secured Parties shall be entitled to receive an amount equal
to all Income paid or distributed on or in respect of the Purchased Items, which amount shall be
deposited by the Seller and any Servicer or PSA Servicer under a Pooling and Servicing Agreement
into the Collection Account. The Seller hereby agrees to instruct each applicable Servicer to
transfer within two (2) Business Days of receipt thereof, and each applicable PSA Servicer under a
Pooling and Servicing Agreement to deposit within two (2) Business Days of the date on which such
Person is obligated under the applicable Pooling and Servicing Agreement to disburse such funds,
all Income with respect to the Purchased Items directly into the Collection Account. On each
Payment Date, any amounts on deposit in the Collection Account and permitted to be withdrawn from
the Homewood Interest Reserve shall be withdrawn by the Deal Agent and shall be applied as follows:

          FIRST, pari passu and pro–rata (based on the amounts owed to such Persons under this
clause FIRST), to the payment of all fees, expenses, and other obligations then due to the
Purchaser pursuant to this Agreement and/or the Fee Letter (including, without limitation, the
Unused Fee, the Commitment Fee, the Swingline Fee and the Extension Fee), other than the Price
Differential and Purchase Price on the Purchased Assets;

          SECOND, to the extent not paid by the Seller, to the payment of fees and expenses owed to the
Custodian under the Custodial Agreement or Custodial Fee Letter;

          THIRD, pari passu and pro–rata (based on the amounts owed to such Persons under this
clause THIRD), to the Purchaser and any Affected Party for the payment of accrued and
unpaid Price Differential on the Purchased Assets and Late Payment Fees outstanding;

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          FOURTH, pari passu and pro–rata (based on the amounts owed to such Persons under this
clause FOURTH), to the extent not previously paid pursuant to Section 2.3 or
Section 2.16, to the Purchaser or the Swingline Purchaser, as applicable, to pay the
Repurchase Price for Purchased Assets then subject to a request to repurchase in accordance with
the terms of Section 2.3 or required to be repaid in accordance with Section 2.16;

          FIFTH, pari passu and pro–rata (based on the amounts owed to such Persons under this
clause FIFTH), without limiting the Seller’s obligations to cure Margin Deficits in a
timely manner in accordance with Section 2.7 and to repurchase certain Purchased Assets as
provided in this Article II, to the Purchaser for the payment of, as applicable, any Margin
Deficit or Purchase Price outstanding;

          SIXTH, pari passu and pro–rata (based on the amounts owed to such Persons under this
clause SIXTH), to the extent any Income includes payments or prepayments of principal on
the underlying Mortgage Asset (including, without limitation, insurance or condemnation proceeds or
recoveries from any foreclosures), such payments shall be applied to reduce the aggregate Purchase
Price outstanding for the related Transaction;

          SEVENTH, pari passu and pro–rata (based on the amounts owed to such Persons under this
clause SEVENTH), to the payment of Breakage Costs, Indemnified Amounts, Increased Costs,
Additional Amounts and all other amounts then due and owing to the Purchaser, any Secured Party,
any Affected Party or any other Person pursuant to this Agreement and the other Repurchase
Documents; and

          EIGHTH, to the Operating Account, for such purposes as the Seller shall determine in its sole
discretion;

provided, however, that if a Margin Deficit is outstanding or a Default or Event of
Default has occurred and is continuing, such amounts shall not be transferred to the Operating
Account but shall remain in the Collection Account and applied in reduction of the Aggregate
Unpaids.

          Notwithstanding anything to the contrary contained herein, in the event any Borrower Reserve
Payments are deposited into the Collection Account, such Borrower Reserve Payments shall, upon
written request of the Seller, be promptly transferred from the Collection Account to the Operating
Account for the Seller to transfer into the appropriate escrow or reserve accounts.

          Section 2.9 Payment, Transfer and Custody.

          (a) Unless otherwise expressly provided herein, all amounts to be paid or deposited by the
Seller hereunder shall be paid or deposited in accordance with the terms hereof no later than 1:00
p.m. on the day when due in lawful money of the United States, in immediately available funds and
without deduction, set–off or counterclaim to the Deal Agent’s Account and if not received before
such time shall be deemed to be received on the next Business Day. The Seller shall, to the extent
permitted by Applicable Law, pay to the Deal Agent as agent for the Secured Parties interest on any
amounts not paid when due hereunder or under the Repurchase Documents at the Post Default Rate,
payable on demand; provided, however, that such interest rate shall not at any time
exceed the maximum rate permitted by Applicable Law. Such interest shall be for the account of,
and distributed to, the Purchaser. All computations of interest and all computations of the Price
Differential and other fees hereunder or under the Fee Letter shall be made on the basis of a year
consisting of 360 days (other than calculations with respect to the Base Rate which shall be based
on a year consisting of 365 or 366 days, as applicable) for the actual number of days (including
the first but excluding the last day) elapsed. All fees payable hereunder or under the Fee Letter
shall accrue on the same basis as the CP Rate. Amounts payable to the Deal Agent as agent for the
Secured Parties and not otherwise required to be deposited into the Collection

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Account shall be deposited into the Deal Agent’s Account. The Seller acknowledges that it has
no rights in, no rights of withdrawal from and no rights to give notices or instructions regarding
the Deal Agent’s Account, from the Collection Account or Homewood Interest Reserve.

          (b) Whenever any payment hereunder shall be stated to be due on a day other than a Business
Day, such payment shall be made on the next succeeding Business Day, and such extension of time
shall in such case be included in the computation of the payment of the Price Differential or any
fee payable hereunder or under the Fee Letter, as the case may be.

          (c) If any Transaction requested by the Seller and approved in writing by the Deal Agent,
pursuant to Section 2.2, 2.3 or Section 2.6, is not, for any reason, made
or effectuated, as the case may be, on the date specified therefor, the Seller shall indemnify the
Deal Agent, the Purchaser and any Secured Party against any reasonable loss, cost or expense
incurred by the Deal Agent, the Purchaser and each Secured Party including, without limitation, any
loss (including loss of anticipated profits, net of anticipated profits, if any, in the
reemployment of such funds in the manner determined by the Deal Agent in its sole discretion), or
reasonable cost or expense incurred by reason of the liquidation or reemployment of deposits or
other funds acquired by the Deal Agent, the Purchaser or any Secured Party to fund or maintain such
Transaction. For the avoidance of doubt, (i) if the Purchaser issues Commercial Paper Notes in
reliance on a Confirmation executed by the Seller, which Confirmation is irrevocable, and the
Transaction is not consummated on the date specified therefor for any reason (including the failure
to receive a Trust Receipt or a Table Funded Trust Receipt, as applicable, in a timely manner), the
Seller shall be responsible for the amounts referred to in the preceding sentence (including,
without limitation, interest and Breakage Costs) in connection with the Purchaser’s repayment,
holding or any other disposition of such Commercial Paper Notes and (ii) even if the Purchaser
issues Commercial Paper Notes in reliance on an irrevocable Confirmation executed by the Seller,
the Purchaser will not fund any Purchased Price until the conditions of this Agreement are
satisfied, including, without limitation, the delivery to the Deal Agent of a Trust Receipt or
Table Funded Trust Receipt, as applicable, as provided in Subsection 2.2(h) of this
Agreement.

          (d) On the Purchase Date for each Transaction, ownership of the Purchased Assets shall be
transferred to the Purchaser or its designee (including the Deal Agent or the Custodian) against
the simultaneous transfer of the Purchase Price to the Seller not later than the end of the
Business Day simultaneously with the delivery to the Custodian of the Purchased Assets relating to
each Transaction in accordance with and subject to the provisions of Subsection 2.2(h).
The Seller hereby sells, transfers, conveys and assigns to the Purchaser or its designee (including
the Deal Agent or the Custodian) all the right, title and interest of the Seller in and to the
Purchased Items together with all right, title and interest in and to the proceeds of any related
Purchased Items.

          (e) In connection with such sale, transfer, conveyance and assignment, (i) in the case of a
Non–Table Funded Purchased Asset, on or prior to each Purchase Date, and (ii) in the case of a
Table Funded Purchased Asset or Swingline Purchase, on or prior to the date and time specified in
Subsections 2.2(d) and 2.2(h), the Seller shall deliver or cause to be delivered
and released to the Purchaser or its designee (including the Custodian) (x) the Custodial
Identification Certificate and (y) the documents identified in Section 3.1 of the Custodial
Agreement.

          (f) Any Mortgage Asset Files not delivered to the Deal Agent or its designee (including the
Custodian) are and shall be held in trust by the Seller or its designee for the benefit of the
Purchaser or its designee as the owner thereof. The Seller or its designee shall maintain a copy
of the Mortgage Asset File and the originals of the Mortgage Asset File not delivered to the
Purchaser or its designee (including the Custodian). The possession of the Mortgage Asset File by
the Seller or its designee is at the will of the Deal Agent for the sole purpose of servicing the
related Purchased Asset, and such retention and

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possession by the Seller or its designee is in a custodial capacity only. Each Mortgage Asset
File retained or held by the Seller or its designee shall be segregated on the Seller’s books and
records from the other assets of the Seller or its designee, and the books and records of the
Seller or its designee shall be marked appropriately to reflect clearly the sale of the related
Purchased Asset to the Purchaser or its designee. The Seller or its designee shall release its
custody of the Mortgage Asset File only in accordance with written instructions from the Deal
Agent, unless such release is required as incidental to the servicing of the Purchased Assets or is
in connection with a repurchase of any Purchased Asset by the Seller.

          (e) Notwithstanding anything contained in this Agreement to the contrary, all Repurchase Price
and all other Obligations shall be paid in full on or before the Facility Maturity Date.

          Section 2.10 Disputes Regarding Market Value Determination.

          Subject to Section 2.7, if the Seller has a good faith basis to dispute any
determination of the Market Value (or the market value of an Underlying Mortgaged Property for the
purposes of determining LTV) by the Deal Agent, the Seller may notify the Deal Agent of such
dispute within three (3) Business Days after any such determination thereof by the Deal Agent. The
Seller may, at its sole cost and expense, (A) if the dispute involves the appraised value of an
Underlying Mortgaged Property used by the Deal Agent in determining the Market Value or LTV of a
Purchased Asset, within forty–five (45) calendar days of the date of the notice to the Deal Agent
deliver a new FIRREA Appraisal of such Underlying Mortgaged Property, in which case the appraised
value set forth in such new FIRREA Appraisal shall be used in lieu of the disputed appraised value
in the determining the Market Value or LTV of such Purchased Asset, and, (B) if the dispute
involves the price at which a Purchased Asset could readily be sold used by the Deal Agent in
determining the Market Value of such Purchased Asset, within three (3) Business Days (or, in the
case of Mezzanine Loans and Preferred Equity Interests, fifteen (15) calendar days) of the date of
the notice to the Deal Agent deliver up to three (3) written Alternative Market Price Quotes, in
which case the average of the Alternative Market Price Quotes on the one hand and the market price
used by the Deal Agent on the other shall be used in lieu of the disputed market price in the
determination of the Market Value of such Purchased Asset. Notwithstanding anything to the
contrary herein, in the event that the Seller fails to timely deliver to the Deal Agent any notice
of dispute within such three (3) Business Day period or fails to deliver such appraisal within
forty–five (45) calendar days or such Alternative Market Price Quotes within such three (3)
Business Days (or, in the case of Mezzanine Loans, fifteen (15) calendar days), respectively, the
Deal Agent’s determination of the Market Value shall be final and conclusive.

          Section 2.11 Hypothecation or Pledge of Purchased Assets.

          Title to all Purchased Items shall pass to the Purchaser or its designee, and the Purchaser
and its designee shall have free and unrestricted use of all Purchased Assets and Purchased Items.
Nothing in this Agreement shall preclude the Purchaser or its designee from engaging in repurchase
transactions with the Purchased Items or otherwise pledging, repledging, transferring,
hypothecating, or rehypothecating the Purchased Items, all on terms that the Deal Agent may
determine in its sole discretion. Nothing contained in this Agreement shall obligate the Deal
Agent, the Purchaser or any Secured Party to segregate any Purchased Items delivered to the
Purchaser or its designee by the Seller.

          Section 2.12 Fees.

          (a) On or prior to the Closing Date, the Seller shall pay to the Deal Agent on behalf of the
Purchaser the fees agreed to by the Seller and the Deal Agent in the Fee Letter.

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          (b) To the extent not paid by the Seller under the Fee Letter, the Price Differential, the
Unused Fee, the Swingline Fee and all other fees and amounts payable under the Fee Letter shall be
paid to the Deal Agent on behalf of the Purchaser from the Collection Account to the extent funds
are available on each Payment Date pursuant to Section 2.8.

          (c) To the extent not paid by the Seller, the Custodian’s fees and expenses shall be paid to
the Custodian from the Collection Account to the extent funds are available on each Payment Date
pursuant to Section 2.8.

          (d) The Seller shall pay to Moore & Van Allen PLLC, as counsel to the Deal Agent and the
Purchaser, on the Closing Date, its reasonable estimated fees and out–of–pocket expenses in
immediately available funds and shall pay all additional reasonable fees and out–of–pocket expenses
of Moore & Van Allen PLLC within ten (10) days after receiving an invoice for such amounts.

          Section 2.13 Increased Costs; Capital Adequacy; Illegality.

          (a) If either (i) the introduction of or any change (including, without limitation, any change
by way of imposition or increase of reserve requirements) in or in the interpretation of any law or
regulation, or (ii) the compliance by the Purchaser and/or any other Affected Party with any
guideline or request from any central bank or other Governmental Authority (whether or not having
the force of law) shall (1) subject the Purchaser and/or any other Affected Party to any Tax
(except for Taxes on the overall net income or franchise of the Purchaser and/or any other Affected
Party), duty or other charge with respect to any ownership interest in the Purchased Items, or any
right to enter into Transactions hereunder, or on any payment made hereunder, (2) impose, modify or
deem applicable any reserve requirement (including, without limitation, any reserve requirement
imposed by the Board of Governors of the Federal Reserve System, but excluding any reserve
requirement, if any, included in the determination of the Price Differential), special deposit or
similar requirement against assets of, deposits with or for the amount of, or credit extended by,
the Purchaser and/or any other Affected Party or (3) impose any other condition affecting the
ownership interest in the Purchased Items conveyed to the Purchaser hereunder or the Deal Agent’s,
the Purchaser’s and/or any other Affected Party’s rights hereunder, the result of which is to
increase the cost to the Deal Agent, the Purchaser and/or any other Affected Party or to reduce the
amount of any sum received or receivable by the Purchaser and/or any other Affected Party under
this Agreement, then within ten (10) days after demand by the Deal Agent, the Purchaser and/or any
other Affected Party (which demand shall be accompanied by a statement setting forth the basis for
such demand), the Seller shall pay directly to the Deal Agent, the Purchaser and/or any other
Affected Party such additional amount or amounts as will compensate the Purchaser and/or any other
Affected Party for such additional or increased cost incurred or such reduction suffered.

          (b) If either (i) the introduction of or any change in or in the interpretation of any law,
guideline, rule, regulation, directive or request or (ii) compliance by the Purchaser and/or any
other Affected Party with any law, guideline, rule, regulation, directive or request from any
central bank or other Governmental Authority or agency (whether or not having the force of law),
including, without limitation, compliance by the Purchaser and/or any Affected Party with any
request or directive regarding capital adequacy, has or would have the effect of reducing the rate
of return on the capital of the Purchaser and/or any other Affected Party as a consequence of its
obligations hereunder or arising in connection herewith to a level below that which the Purchaser
and/or any other Affected Party could have achieved but for such introduction, change or compliance
(taking into consideration the policies of the Purchaser and/or any other Affected Party with
respect to capital adequacy) by an amount deemed by the Purchaser and/or any other Affected Party
to be material, then from time to time, within ten (10) days after demand by the Deal Agent on
behalf of the Purchaser and/or any other Affected Party (which demand shall be accompanied by a
statement setting forth the basis for such demand), the Seller shall pay

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directly to the Deal Agent on behalf of the Purchaser and/or any other Affected Party such
additional amount or amounts as will compensate the Purchaser and/or any other Affected Party for
such reduction. For the avoidance of doubt, any interpretation of Accounting Research Bulletin No.
51 by the Financial Accounting Standards Board shall constitute an adaptation, change, request or
directive subject to this Subsection 2.13(b).

          (c) If as a result of any event or circumstance similar to those described in Subsections
(a) or (b) of this Section 2.13, the Purchaser or any Affected Party is
required to compensate a bank or other financial institution providing liquidity support, credit
enhancement or other similar support to such Purchaser or any Affected Party in connection with
this Agreement or the other Repurchase Documents or the funding or maintenance of Purchased Items
hereunder, then within ten (10) days after demand by the Deal Agent on behalf of the Purchaser and
any such Affected Party, the Seller shall pay to the Deal Agent on behalf of the Purchaser and any
such Affected Party such additional amount or amounts as may be necessary to reimburse the
Purchaser and any such Affected Party for any amounts payable or paid by it.

          (d) In determining any amount provided for in this Section 2.13, the Deal Agent, the
Purchaser and/or any other Affected Party may use any reasonable averaging and attribution methods.
The Deal Agent, the Purchaser and/or any other Affected Party making a claim under this
Section 2.13 shall submit to the Seller a written description as to such additional or
increased cost or reduction and the calculation thereof, which written description shall be
conclusive absent demonstrable error.

          (e) If an Affected Party shall notify the Deal Agent that a Eurodollar Disruption Event as
described in clause (a) of the definition of “Eurodollar Disruption Event” has occurred,
the Deal Agent shall in turn so notify the Seller, whereupon all Transactions in respect of which
the Price Differential accrues at the Adjusted Eurodollar Rate shall immediately be converted into
Transactions in respect of which the Price Differential accrues at the Base Rate.

          (f) The Deal Agent shall use reasonable efforts to give thirty (30) calendar days notice of
amounts due under this Section 2.13; provided, however, the Deal Agent’s
failure to give such notice shall not in anyway affect or limit the Seller’s obligation to pay such
amounts.

          (g) Without prejudice to the survival of any other agreement of the Seller hereunder, the
agreements and obligations of the Seller contained in this Section 2.13 shall survive the
termination of this Agreement.

          Section 2.14 Taxes.

          (a) All payments made by a Borrower in respect of a Purchased Item and all payments made by
the Seller under this Agreement will be made free and clear of and without deduction or withholding
for or on account of any Taxes. If any Taxes are required to be withheld from any amounts payable
to the Deal Agent, the Purchaser or any Affected Party, then the amount payable to such Person will
be increased (such increase, the “Additional Amount”) such that every net payment made
under this Agreement after withholding for or on account of any Taxes (including, without
limitation, any Taxes on such increase) is not less than the amount that would have been paid had
no such deduction or withholding been deducted or withheld. The foregoing obligation to pay
Additional Amounts, however, will not apply with respect to net income or franchise taxes imposed
on the Deal Agent, the Purchaser and/or any other Affected Party, with respect to payments required
to be made by the Seller under this Agreement, by a taxing jurisdiction in which the Deal Agent,
the Purchaser and/or any other Affected Party is organized, conducts business or is paying taxes
(as the case may be).

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          (b) The Seller will indemnify the Deal Agent, the Purchaser and/or any other Affected Party
for the full amount of Taxes payable by such Person in respect of Additional Amounts and any
liability (including penalties, interest and expenses) arising therefrom or with respect thereto.
All payments in respect of this indemnification shall be made within ten (10) days from the date a
written invoice therefor is delivered to the Seller.

          (c) Within thirty (30) days after the date of any payment by the Seller of any Taxes, the
Seller will furnish to the Deal Agent, at its address set forth under its name on the signature
pages hereof, appropriate evidence of payment thereof.

          (d) If the Purchaser or any Affected Party is created or organized under the laws of the
United States or a political subdivision thereof, the Purchaser or such Affected Party shall
deliver to the Seller, within fifteen (15) days after the date hereof, two (or such other number as
may from time to time be prescribed by Applicable Laws) duly completed copies of IRS Form W–9 (or
any successor forms of other certificates or statements that may be required from time to time by
the relevant United States taxing authorities or Applicable Laws). If the Purchaser or any
Affected Party is not created or organized under the laws of the United States or a political
subdivision thereof, the Deal Agent on behalf of the Purchaser or such Affected Party shall deliver
to the Seller (with a copy to the Deal Agent in the case of delivery by an Affected Party), (i)
within fifteen (15) days after the date hereof, two (or such other number as may from time to time
be prescribed by Applicable Laws) duly completed copies of IRS Form W–8BEN or Form W–8ECI (or any
successor forms or other certificates or statements that may be required from time to time by the
relevant United States taxing authorities or Applicable Laws), as appropriate, to permit the
Seller, the Guarantor and the Pledgor to make payments hereunder and under the other Repurchase
Documents for the account of the Deal Agent, the Purchaser and each Affected Party without
deduction or withholding of United States federal income or similar Taxes, and (ii) upon the
obsolescence of, or after the occurrence of any event requiring a change in, any form or
certificate previously delivered pursuant to this Subsection 2.14(d), copies (in such
numbers as may from time to time be prescribed by Applicable Laws or regulations) of such
additional, amended or successor forms, certificates or statements as may be required under
Applicable Laws or regulations to permit the Seller, the Guarantor and the Pledgor to make payments
hereunder for the account of the Deal Agent, the Purchaser and each Affected Party without
deduction or withholding of United States federal income or similar Taxes.

          (e) If, in connection with an agreement or other document providing liquidity support, credit
enhancement or other similar support to the Purchaser or any Affected Party in connection with this
Agreement or the other Repurchase Documents or the funding or maintenance of Purchased Items
hereunder, the Purchaser or any Affected Party is required to compensate a bank or other financial
institution in respect of Taxes under circumstances similar to those described in this Section
2.14, then, within ten (10) days after demand by the Deal Agent on behalf of the Purchaser and
any Affected Party, the Seller shall pay to the Deal Agent on behalf of the Purchaser and any
Affected Party such additional amount or amounts as may be necessary to reimburse the Purchaser and
any Affected Party for any amounts paid by it.

          (f) Without prejudice to the survival of any other agreement of the Seller hereunder, the
agreements and obligations of the Seller contained in this Section 2.14 shall survive the
termination of this Agreement.

          Section 2.15 Condominium Loans/Land Loans.

          To the extent the Purchaser agrees to purchase a Condominium Loan or a Land Loan in its
discretion, the conditions, representations, warranties, covenants, duties, delivery requirements
and all

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other terms, conditions and requirements applicable to a Condominium Loan and a Land Loan, as
applicable, under the Repurchase Documents shall be the same as those applicable under the
Repurchase Documents to Whole Loans, Junior Interests or Mezzanine Loans, as applicable, except
that the related Transaction Request and Confirmation shall also disclose that the Mortgage Asset
is a Condominium Loan or Land Loan, as applicable, and the Purchaser may require additional or
different requirements, terms, conditions and provisions with respect to such assets, which matters
shall be set forth in the related Confirmation. In addition to the preceding sentence and any
additional requirements set forth in a Confirmation, the Seller shall also deliver to the Custodian
under the Custodial Agreement the construction documents and such other documents, instruments and
agreements as the Deal Agent may require in its discretion for a Land Loan and, in connection with
a Condominium Loan, the following documents:

     (i) the declaration of condominium;

     (ii) the Authority Documents of the condominium association;

     (iii) the plat or map establishing or depicting the condominium;

     (iv) a condominium endorsement to the title policy; and

     (v) such other documents, instruments and agreements as the Deal Agent may require in
its discretion.

          Section 2.16 Swingline Purchasers.

          (a) During the Facility Period, the Seller may request a Swingline Purchase by delivering a
written request therefor (which may be by email) to the Deal Agent and the Swingline Purchaser (a
“Swingline Funding Request”) by 2 p.m. on the proposed Purchase Date Each purchase by the
Swingline Purchaser shall be in a minimal amount of $500,000 and shall be irrevocable. Provided
the Deal Agent has determined in its discretion to enter into the related Transaction that is the
subject of the Swingline Funding Request, the Swingline Purchaser determines in its discretion to
make such Swingline Purchase and all other terms and conditions set forth in Articles II
and III are satisfied on the proposed Purchase Date, the Swingline Purchaser shall fund the
Swingline Purchase by 5 p.m. on the proposed Purchase Date in the manner provided in Subsection
2.2(i). If any Swingline Funding Request is received by the Deal Agent and the Swingline
Purchaser after 2:00 p.m. on the Business Day for which such Swingline Purchase is requested or on
a day that is not a Business Day, such Swingline Funding Request shall be deemed to be received by
the Deal Agent and the Swingline Purchaser at 9:00 a.m. on the next following Business Day. The
Seller shall deliver no more than two (2) Swingline Funding Requests in any calendar week. The
aggregate Purchase Price for all outstanding Transactions subject to Swingline Purchases shall not
at any time exceed the Swingline Maximum Amount. In the event the Swingline Purchaser funds more
than three (3) Swingline Purchases in any calendar month, the Seller shall pay to the Deal Agent on
behalf of the Swingline Purchaser a Swingline Fee. Swingline Purchases are revolving and may be
repaid and readvanced in the Swingline Purchaser’s discretion.

          (b) Notwithstanding Articles II and III of this Agreement, VFCC hereby agrees
that if the Swingline Purchaser funds any Swingline Purchase, VFCC shall acquire the related
Purchased Asset from the Swingline Purchaser by reimbursing the Swingline Purchaser the Repurchase
Price for such Swingline Purchase not later than 5 p.m. one (1) Business Day after the Swingline
Purchaser funds such Swingline Purchase. The Seller hereby authorizes and instructs VFCC to
acquire the related Purchased Asset from the Swingline Purchaser by reimbursing the Swingline
Purchaser in the manner described in this Subsection 2.16(b). Upon the timely payment of
the Repurchase Price for a Swingline Purchase to the

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Swingline Purchaser, such Purchased Asset shall continue to be a Purchased Asset under the
Repurchase Documents and VFCC shall thereafter be the Purchaser thereof.

          (c) Unless sooner reimbursed by VFCC pursuant to Subsection 2.16(b), the Repurchase
Price for the Swingline Purchases shall be repaid in full by the Seller to the Swingline Purchaser
within one (1) Business Day following demand therefore from the Swingline Purchaser. The amounts
due for Swingline Purchases shall be full recourse to the Seller. If the Repurchase Price for a
Swingline Purchase is not repaid on or before the date and time such amounts are due, the same
shall constitute an Event of Default under the Repurchase Documents.

ARTICLE III

CONDITIONS TO TRANSACTIONS

          Section 3.1 Conditions to Closing and Initial Purchase.

          Neither the Deal Agent nor the Purchaser shall be obligated to enter into any Transaction
hereunder nor shall the Deal Agent or the Purchaser be obligated to take, fulfill or perform any
other action hereunder until the following conditions have been satisfied, in the sole discretion
of, or waived in writing by, the Deal Agent:

          (a) Each Repurchase Document shall have been duly executed by, and delivered to, the parties
thereto, and the Deal Agent shall have received such other documents, instruments, agreements and
legal opinions as the Deal Agent shall reasonably request in connection with the Transactions
contemplated by this Agreement, each in form and substance satisfactory to the Deal Agent;

          (b) The Deal Agent shall have received (i) satisfactory evidence that the Seller and the
Guarantor have obtained all required consents and approvals of all Persons, including all requisite
Governmental Authorities, to the execution, delivery and performance of this Agreement and the
other Repurchase Documents to which each is a party and the consummation of the transactions
contemplated hereby or thereby or (ii) an Officer’s Certificate from each of the Seller and the
Guarantor in form and substance reasonably satisfactory to the Deal Agent affirming that no such
consents or approvals are required; it being understood that the acceptance of such evidence or
Officer’s Certificate shall in no way limit the recourse of the Deal Agent, the Purchaser or any
other Secured Party against the Seller or the Guarantor for a breach of the Seller’s or the
Guarantor’s representation or warranty that all such consents and approvals have, in fact, been
obtained;

          (c) The Seller, the Guarantor and the Pledgor shall each be in compliance in all material
respects with all Applicable Laws and Contractual Obligations and shall have delivered to the Deal
Agent as to this and other closing matters certification in the form of Exhibit I–1,
I–2 and I–3, respectively;

          (d) The Deal Agent shall be in receipt of UCC searches regarding the Seller and the Pledgor
from the appropriate jurisdictions;

          (e) The Seller and the Pledgor shall have delivered to the Deal Agent a perfection certificate
in the form of Exhibit VI–1 and VI–2, respectively;

          (f) Any and all consents and waivers applicable to the Seller, the Guarantor or to the
Purchased Items shall have been obtained;

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          (g) UCC Financing Statements shall have been filed in the appropriate filing offices;

          (h) The Deal Agent shall be in receipt of such Opinions of Counsel from the counsel to the
Seller, the Guarantor, the Pledgor and the Custodian as the Deal Agent may require, each in form
and substance satisfactory to the Deal Agent in its sole discretion, including, without limitation,
corporate opinions and perfection opinions (filing and possession);

          (i) The Deal Agent shall be in receipt of a good standing certificate, secretary’s
certificate, incumbency certificate and certified copies of the Authority Documents and applicable
resolutions of the Seller, the Guarantor, the Pledgor and the Custodian evidencing the corporate or
other authority for the Seller, the Guarantor, the Pledgor and the Custodian with respect to the
execution, delivery and performance of the Repurchase Documents and each of the other documents to
be delivered by the Seller, the Guarantor and the Custodian from time to time in connection
herewith;

          (j) The Deal Agent as agent for the Secured Parties shall have received payment from the
Seller of the fees payable under the Fee Letter and the amount of actual costs and expenses,
including, without limitation, the fees and expenses of counsel to the Deal Agent and Purchaser as
contemplated by Section 13.9, incurred by the Deal Agent and/or the Purchaser in connection
with the development, preparation and execution of this Agreement, the other Repurchase Documents
and any other documents prepared in connection herewith or therewith;

          (k) The Deal Agent is in receipt of pro–forma Financial Covenant calculations from ART;

          (l) No Event of Default or Material Adverse Effect shall have occurred;

          (m) The Deal Agent shall be in receipt of a Power of Attorney from the Seller and the Pledgor
in the form of Exhibits III–1 and III–2, respectively;

          (n) The Deal Agent shall have completed to its satisfaction such due diligence as it may
require in its discretion; and

          (o) The Deal Agent shall have received all such other and further documents, certifications,
reports, approvals and legal opinions as the Deal Agent may reasonably require.

          Section 3.2 Conditions Precedent to all Transactions.

          The Deal Agent’s and the Purchaser’s agreement to enter into each Transaction (including the
initial Transaction) is subject to the satisfaction of the following further conditions precedent,
both immediately prior to entering into such Transaction and also after giving effect to the
consummation thereof and the intended use of the proceeds of the sale:

          (a) no Applicable Law shall prohibit or render it unlawful, and no order, judgment or decree
of Governmental Authority shall prohibit, enjoin or render it unlawful, to enter into such
Transaction in accordance with the provisions hereof or any other transaction contemplated herein;

          (b) the Seller, the Guarantor, the Pledgor and each Servicer and PSA Servicer shall have
delivered to the Deal Agent all reports and other information required to be delivered as of the
date of such Transaction;

          (c) the Seller shall have delivered a Confirmation, via Electronic Transmission, in accordance
with the procedures set forth in Section 2.2, and the Deal Agent shall have determined that
the

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Mortgage Asset described in such Confirmation is an Eligible Asset, shall have approved in
writing the purchase of the Mortgage Asset to be included in such Transaction in its discretion and
shall have obtained all necessary internal credit and other approvals for such Transaction;

          (d) no Default or Event of Default shall have occurred and be continuing and no Margin
Deficits are outstanding;

          (e) the Deal Agent shall have received a Compliance Certificate in the form of Exhibit
X attached hereto (“Compliance Certificate”) from a Responsible Officer of the Seller
and Guarantor that, among other things: (i) shows in detail the calculations demonstrating that,
after giving effect to the requested Transaction, the aggregate Purchase Price of the Transactions
outstanding shall not exceed the Maximum Amount, (ii) the Seller and the Guarantor have observed or
performed all of their covenants and other agreements, and satisfied every condition, contained in
this Agreement, the Repurchase Documents and the related documents to be observed, performed or
satisfied by them, and that such Responsible Officer has obtained no knowledge of any Default or
Event of Default except as specified in such certificate, (iii) states that all representations and
warranties contained in this Agreement are true and correct on and as of such day as though made on
and as of such day and shall be deemed to be made on such day, (iv) ART is in compliance with the
Financial Covenants, and (v) discloses the status of each Interest Rate Protection Agreements
described under clause (ii) of the definition thereof;

          (f) after giving effect to the requested Transaction, the aggregate outstanding Purchase Price
of the Transactions outstanding shall not exceed the Asset Value of all the Purchased Assets
subject to outstanding Transactions or the Maximum Amount;

          (g) subject to the Deal Agent’s right to perform one or more Due Diligence Reviews pursuant to
Section 13.21, the Deal Agent shall have completed in accordance with Section 2.2
its due diligence review of the Mortgage Asset File and the Underwriting Package for each
Purchased Asset and such other documents, records, agreements, instruments, mortgaged properties or
information relating to such Mortgage Asset as the Deal Agent in its sole discretion deems
appropriate to review and such review shall be satisfactory to the Deal Agent in its sole
discretion;

          (h) with respect to any Eligible Asset to be purchased hereunder on the related Purchase Date
that is not serviced by the Seller, the Seller shall have provided to the Deal Agent copies of the
related Servicing Agreements and the Pooling and Servicing Agreements, certified as true, correct
and complete copies of the originals, together with Servicer Redirection Notices fully executed by
the Seller and the Servicer;

          (i) the Deal Agent as agent for the Secured Parties shall have received all fees and expenses
of the Deal Agent, the Purchaser and counsel to the Deal Agent and the Purchaser as contemplated by
Section 13.9 and the Fee Letter and, to the extent the Seller is required hereunder to
reimburse the Deal Agent for such amounts, the Deal Agent shall have received the reasonable costs
and expenses incurred by them in connection with the entering into of any Transaction hereunder,
including, without limitation, costs associated with due diligence recording or other
administrative expenses necessary or incidental to the execution of any Transaction hereunder,
which amounts, at the Deal Agent’s option, may be withheld from the sale proceeds of any
Transaction hereunder;

          (j) none of the following shall have occurred and/or be continuing:

     (i) an event or events shall have occurred in the good faith determination of the Deal
Agent resulting in the effective absence of a “repo market” or related “lending market” for
purchasing (subject to repurchase) or financing debt obligations secured by commercial
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loans or securities, or an event or events shall have occurred resulting in the
Purchaser or any Secured Party not being able to finance Mortgage Assets through the “repo
market” or “lending market” with traditional counterparties at rates that would have been
reasonable prior to the occurrence of such event or events;

     (ii) an event or events shall have occurred resulting in the effective absence of a
“securities market” for securities backed by Mortgage Assets, or an event or events shall
have occurred resulting in the Deal Agent, the Purchaser or any Secured Party not being able
to sell securities backed by Mortgage Assets at prices that would have been reasonable prior
to such event or events; or

     (iii) there shall have occurred a material adverse change in the financial condition of
the Purchaser or any Secured Party that affects (or can reasonably be expected to affect)
materially and adversely the ability of the Purchaser or any Secured Party to fund its
obligations under this Agreement.

          (k) for each Non–Table Funded Purchased Asset, the Deal Agent shall have received from the
Custodian on each Purchase Date a Trust Receipt (along with a completed Mortgage Asset File
Checklist attached thereto) and an Asset Schedule and Exception Report with respect to the Basic
Mortgage Asset Documents for each Eligible Asset, each dated the Purchase Date, duly completed and,
in the case of the Asset Schedule and Exception Report, with exceptions acceptable to the Deal
Agent in its sole discretion in respect of Eligible Assets to be purchased hereunder on such
Business Day. In the case of a Table Funded Purchased Asset or Swingline Purchase, the Deal Agent
shall have received on the related Purchase Date the Table Funded Trust Receipt and all other items
described in the second (2nd) sentence of Subsection 2.2(h), each in form and substance
satisfactory to the Deal Agent in its sole discretion, provided that the Deal Agent subsequently
receives the items described in Subsections 2.2(d) and (h) and the other delivery
requirements under the Custodial Agreement on or before the date and time specified herein and
therein, which items shall be in form and substance satisfactory to the Deal Agent in its sole
discretion;

          (l) the Deal Agent shall have received from the Seller a Warehouse Lender’s Release Letter
substantially in the form of Exhibit VII–B hereto (or such other form acceptable to the
Deal Agent) (“Warehouse Lender’s Release Letter”), if applicable, or a Seller’s Release
Letter substantially in the form of Exhibit VII–A hereto (or such other form acceptable to
the Deal Agent) (“Seller’s Release Letter”) covering each Eligible Asset to be sold to the
Deal Agent;

          (m) prior to the purchase of any Eligible Asset acquired (by purchase or otherwise) by the
Seller from any Affiliate of the Seller, the Deal Agent shall have received certified copies of the
applicable Purchase Agreements and a True Sale Opinion;

          (n) The Deal Agent shall be in receipt of the Servicing Agreements (including a Servicing
Agreement for the Preferred Equity Interest or an addendum to the existing Servicing Agreement
providing for the servicing of the Preferred Equity Interests) and the Pooling and Servicing
Agreements (if any), certified as true, correct and complete copies of the originals, together with
the Servicer Redirection Notices, fully executed by the Seller and Servicer;

          (o) on and as of such day, the Seller, the Guarantor and the Custodian shall have performed
all of the covenants and agreements contained in the Repurchase Documents to be performed by such
Person at or prior to such day;

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          (p) the Repurchase Date for such Transaction is not later than to the earlier of (i) the
Facility Maturity Date and (ii) 364 calendar days from the Purchase Date.

          (q) the Deal Agent shall have received evidence satisfactory to the Deal Agent that the Seller
has delivered an irrevocable instruction to each Servicer or PSA Servicer under a Pooling and
Servicing Agreement, as applicable, to pay Income with respect to the Purchased Items directly to
the Collection Account as provided herein, which instructions may not be modified without the prior
written consent of the Deal Agent;

          (r) both immediately prior to the requested Transaction and also after giving effect thereto
and to the intended use thereof, the representations and warranties made by the Seller and the
Guarantor in Section 4.1 shall be true, correct and complete on and as of such Purchase
Date in all material respects with the same force and effect as if made on and as of such date (or,
if any such representation or warranty is expressly stated to have been made only as of a specific
date, as of such specific date);

          (s) the Deal Agent shall be in receipt of the evidence of insurance required by Section
9.1 of the Custodial Agreement;

          (t) the Seller shall have delivered any other opinion or closing item required by Section
3.1 that was, with the written consent of the Deal Agent, not delivered on the Closing Date;

          (u) if applicable and to the extent required for the Deal Agent, the Purchaser or any Secured
Party to assert its rights with respect to an Eligible Asset, a certification of good standing for
the Seller in each jurisdiction where the Mortgaged Property is located;

          (v) other conditions to such Purchase set forth in this Agreement or the Custodial Agreement
are satisfied;

          (w) to the extent there are additional Sellers other than the initial Seller, the additional
Sellers shall each deliver to the Deal Agent a duly executed Power of Attorney in the form attached
as Exhibit III, a Joinder Agreement in form and substance satisfactory to the Deal Agent in
its discretion and all other agreements, documents, certifications, UCC financing statements and
Opinions of Counsel required of the Seller hereunder at the Closing Date or under the Joinder
Agreement;

          (x) to the extent applicable, the Seller shall have delivered the opinions required by
Section 3.3;

          (y) for each Preferred Equity Interest, the Seller has executed and delivered all instruments
and documents and has taken all further action reasonably necessary and desirable or that the Deal
Agent has reasonably requested in order to (i) perfect and protect the Deal Agent’s security
interest in such Preferred Equity Interest (including, without limitation, execution and delivery
of one or more control agreements reasonably acceptable to the Deal Agent, execution and filing of
UCC financing statements and any and all other actions reasonably necessary to satisfy the Deal
Agent that the Deal Agent has obtained a first priority perfected security interest in such
Preferred Equity Interest); (ii) enable the Deal Agent to exercise and enforce its rights and
remedies hereunder in respect of such Preferred Equity Interest; and (iii) otherwise effect the
purposes of this Agreement, including, without limitation and if requested by the Deal Agent,
having delivered to the Deal Agent irrevocable proxies in respect of such Preferred Equity
Interest; and

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          (z) the Deal Agent shall have received all such other and further documents, reports,
certifications, approvals and legal opinions as the Deal Agent in its sole discretion shall
reasonably require.

          Each Confirmation delivered by the Seller hereunder shall constitute a certification by the
Seller that all the conditions set forth in Section 3.1 and this Section 3.2 have
been satisfied (both as of the date of such notice or request and as of the date of such purchase).

          The failure of the Seller or the Guarantor, as applicable, to satisfy any of the foregoing
conditions precedent in respect of any Transaction shall, unless such failure was expressly waived
in writing by the Deal Agent on or prior to the related Purchase Date, give rise to a right of the
Deal Agent, which right may be exercised at any time on the demand of the Deal Agent, to rescind
the related Transaction and direct the Seller to pay to the Deal Agent as agent for the Secured
Parties an amount equal to the Purchase Price, the Price Differential, Breakage Costs and other
amounts due in connection therewith during any such time that any of the foregoing conditions
precedent were not satisfied.

          Section 3.3 Additional Opinions.

          To the extent required by any Rating Agency at any time, the Seller shall (i) amend its
Authority Documents to require two (2) Independent Directors and add any other provision that may
be required by any such Rating Agency in its discretion or by the Deal Agent in its reasonable
discretion, (ii) provide to the Deal Agent a non–consolidation opinion regarding the Seller, the
Pledgor and the Guarantor, which opinion shall be satisfactory to the Deal Agent in its reasonable
discretion and the Rating Agencies in their discretion, (iii) provide the Deal Agent with one (1)
or more legal opinions addressing the single–member limited liability company structure of the
Seller, which opinions shall be satisfactory to the Deal Agent in its reasonable discretion and the
Rating Agencies in their discretion, and (iv) any additional opinions or requirements that any
Rating Agency may require, which opinions shall be satisfactory to the Deal Agent in its reasonable
discretion and the Rating Agencies in their discretion.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

          Section 4.1 Representations and Warranties.

          Each of the Seller and the Guarantor represents and warrants, as of the date of this Agreement
and any Transaction hereunder and at all times while any Repurchase Document and any Transaction
hereunder is in full force and effect, as follows:

          (a) Organization and Good Standing. Each of the Seller’s and the Guarantor’s exact
legal name is set forth on the signature pages to this Agreement. The Seller has been duly
organized, and is validly existing as a limited liability company in good standing, under the laws
of the State of Delaware, with all requisite limited liability company power and authority to own
or lease its Properties and conduct its business as such business is presently conducted, and had,
at all relevant times, and now has, all necessary power, authority and legal right to acquire, own
and sell the Purchased Items. ART has been duly organized, and is validly existing as a
corporation in good standing, under the laws of the State of Maryland, with all requisite corporate
power and authority to own or lease its Properties and conduct its business as such business is
presently conducted. Arbor Realty has been duly organized, is validly existing as a limited
partnership in good standing, under the laws of the State of Delaware, with all

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requisite partnership power and authority to own or lease its Properties and conduct its
business as such business is presently conducted.

          (b) Due Qualification. Each of the Seller and the Guarantor is duly qualified to do
business and is in good standing as a limited liability company, corporation and limited
partnership, respectively, and has obtained all necessary licenses and approvals, in all
jurisdictions in which the ownership or lease of Property or the conduct of its business requires
such qualification, licenses or approvals.

          (c) Power and Authority; Due Authorization; Execution and Delivery. Each of the
Seller and the Guarantor (i) has all necessary power, authority and legal right (A) to execute and
deliver the Repurchase Documents to which it is a party, (B) to carry out the terms of the
Repurchase Documents to which it is a party, (C) with respect to the Seller, to sell and assign an
ownership interest in the Purchased Items, and (D) with respect to the Seller, to sell the
Purchased Items on the terms and conditions provided herein, and (ii) has duly authorized by all
necessary corporate action (A) the execution, delivery and performance of the Repurchase Documents
to which it is a party, and (B) with respect to the Seller, the sale and assignment of an ownership
interest in the Purchased Items on the terms and conditions herein provided. The Repurchase
Documents to which each of the Seller and the Guarantor is a party have been duly executed and
delivered by the Seller and the Guarantor, as applicable.

          (d) Binding Obligation. Each of the Repurchase Documents to which each of the Seller
and the Guarantor is a party constitutes a legal, valid and binding obligation of the Seller and
the Guarantor, as applicable, enforceable against the Seller and the Guarantor in accordance with
its respective terms, except as such enforceability may be limited by Insolvency Laws and by
general principles of equity (whether considered in a suit at law or in equity).

          (e) No Violation. The consummation of the transactions contemplated by the Repurchase
Documents to which each of the Seller and the Guarantor is a party and the fulfillment of the terms
hereof and thereof will not (i) conflict with, result in any breach of any of the terms and
provisions of, or constitute (with or without notice or lapse of time or both) a default under, the
Seller’s or the Guarantor’s, as applicable, Authority Documents or any material Contractual
Obligation of the Seller or the Guarantor, as applicable, (ii) result in the creation or imposition
of any Lien (other than Permitted Liens) upon any of the Seller’s or the Guarantor’s, Properties
pursuant to the terms of any such Contractual Obligation, other than this Agreement, or (iii)
violate any Applicable Law.

          (f) No Proceedings. There is no material litigation, proceeding or investigation
pending or, to the best knowledge of each of the Seller or the Guarantor, threatened against the
Seller or the Guarantor, before any Governmental Authority (i) asserting the invalidity of the
Repurchase Documents to which each of the Seller and the Guarantor is a party, (ii) seeking to
prevent the consummation of any of the transactions contemplated by the Repurchase Documents to
which each of the Seller and the Guarantor is a party, or (iii) seeking any determination or ruling
that could reasonably be expected to have Material Adverse Effect.

          (g) All Consents Required. All approvals, authorizations, consents, orders or other
actions of any Person or of any Governmental Authority (if any) required for the due execution,
delivery and performance by the Seller and the Guarantor of the Repurchase Documents to which each
of the Seller and the Guarantor is a party (including the transfer of and the grant of a security
interest in the Purchased Items) have been obtained, effected or given and are in full force and
effect.

          (h) Bulk Sales. The execution, delivery and performance of this Agreement and the
transactions contemplated hereby do not require compliance with any “bulk sales” act or similar law
by the Seller or the Guarantor.

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          (i) Solvency. Neither the Seller nor the Guarantor is the subject of any Insolvency
Proceedings or Insolvency Event. The Transactions under this Agreement and any other Repurchase
Document to which each of the Seller and the Guarantor is a party do not and will not render the
Seller or the Guarantor not Solvent.

          (j) Selection Procedures. No procedures believed by the Seller or the Guarantor to be
adverse to the interests of the Deal Agent, the Purchaser or the Secured Parties were utilized by
the Seller or the Guarantor in identifying and/or selecting the Purchased Assets. In addition,
each Purchased Asset shall have been underwritten in accordance with and satisfy any applicable
standards that have been established by the Seller, the Guarantor and any of their Affiliates and
are then in effect.

          (k) Taxes. Each of the Seller and the Guarantor has filed or caused to be filed all
tax returns that are required to be filed by it. Each of the Seller and the Guarantor has paid or
made adequate provisions for the payment of all Taxes and all assessments made against it or any of
its Property (other than any amount of Tax the validity of which is currently being contested in
good faith by appropriate proceedings and with respect to which reserves in accordance with GAAP
have been provided on the books of the Seller), and no tax Lien has been filed and, to each of the
Seller’s and the Guarantor’s knowledge, no claim is being asserted, with respect to any such Tax,
fee or other charge.

          (l) Exchange Act Compliance; Regulations T, U and X. None of the transactions
contemplated herein (including, without limitation, the use of the proceeds from the sale of the
Purchased Items) will violate or result in a violation of Section 7 of the Exchange Act, or any
regulations issued pursuant thereto, including, without limitation, Regulations T, U and X.
Neither the Seller nor the Guarantor owns or intends to carry or purchase, and no proceeds from the
Transactions will be used to carry or purchase, any “margin stock” within the meaning of Regulation
U or to extend “purpose credit” within the meaning of Regulation U.

          (m) Environmental Matters.

     (i) No Properties owned or leased by the Seller or the Guarantor and, to the knowledge
of each of the Seller and the Guarantor, no Properties formerly owned or leased by the
Seller or the Guarantor, or any Subsidiaries thereof, contain, or have previously contained,
any Materials of Environmental Concern in amounts or concentrations that constitute or
constituted a violation of, or reasonably could be expected to give rise to liability under,
Environmental Laws;

     (ii) Each of the Seller and the Guarantor is in compliance, and has in the last five
(5) years (or such shorter period as the Seller and/or the Guarantor shall have been in
existence) been in compliance, with all applicable Environmental Laws, and, to the knowledge
of the Seller and the Guarantor, there is no violation of any Environmental Laws that
reasonably could be expected to interfere with the continued operations of the Seller or the
Guarantor;

     (iii) Neither the Seller nor the Guarantor has received any notice of violation,
alleged violation, non–compliance, liability or potential liability under any Environmental
Law, nor does the Seller or the Guarantor have knowledge that any such notice will be
received or is being threatened;

     (iv) Materials of Environmental Concern have not been transported or disposed of by the
Seller or the Guarantor in violation of, or in a manner or to a location that reasonably
could be expected to give rise to liability under, any applicable Environmental Law, nor has
any of them generated, treated, stored or disposed of at, on or under any of the Properties
in violation of, or in

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a manner that reasonably could be expected to give rise to liability under, any
applicable Environmental Law;

     (v) No judicial proceedings or governmental or administrative action is pending, or, to
the knowledge of each of the Seller and the Guarantor, threatened, under any Environmental
Law to which Seller or the Guarantor 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 arising out of judicial proceedings or
governmental or administrative actions, outstanding under any Environmental Law to which the
Seller or the Guarantor is a party;

     (vi) There has been no release or, to the best knowledge of each of the Seller and the
Guarantor, threat of release of Materials of Environmental Concern in violation of or in
amounts or in a manner that reasonably could be expected to give rise to liability under any
Environmental Law for which the Seller or the Guarantor may become liable; and

     (vii) To the best knowledge of each of the Seller and the Guarantor, each of the
representations and warranties set forth in the preceding clauses (i) through
(vi) is true and correct with respect to each parcel of real property owned or
operated by the Seller and the Guarantor.

          (n) Security Interest.

     (i) This Agreement and the applicable Transfer Documents constitute a valid transfer to
the Purchaser or its designee of all right, title and interest of the Seller in, to and
under all Purchased Items, free and clear of any Lien of any Person claiming through or
under the Seller, the Guarantor or any of their Affiliates, except for Permitted Liens and
the Seller’s repurchase rights described in Article II, and is enforceable against
creditors of and purchasers from the Seller. If the conveyances contemplated by this
Agreement are determined to be transfers for security, then this Agreement constitutes a
grant of a security interest in all Purchased Items to the Deal Agent as agent for the
Secured Parties, that, upon the delivery of the Transfer Documents and Mortgage Asset Files
to the Custodian and the filing of the financing statements described in Subsection
4.1(n)(v), shall be a first priority perfected security interest in all Purchased Items
to the extent such Purchased Items can be perfected by possession or by filing, subject only
to Permitted Liens. Neither the Seller nor any Person claiming through or under the Seller
shall have any claim to or interest in the Collection Account or the Homewood Interest
Reserve, except for the interest of the Seller in such property as a debtor for purposes of
the UCC;

     (ii) The Purchased Items constitute either a “general intangible,” an “instrument,” an
“account,” “investment property,” a “security,” a “deposit account,” a “financial asset,” an
“uncertificated security,” a “securities account,” a “securities entitlement” and/or
“chattel paper” within the meaning of the applicable UCC;

     (iii) Other than the Lien and transfers contemplated hereunder, the Seller has not
sold, assigned, pledged, encumbered or otherwise conveyed any of the Purchased Items to any
Person, and, immediately prior to the sale to the Purchaser or its designee, the Seller was
the sole owner of such Purchased Items, and the Seller owns and has good and marketable
title to the Purchased Items free and clear of any Lien (other than Permitted Liens);

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     (iv) The Seller has received all consents and approvals, if any, required by the terms
of any Purchased Items to the sale and granting of a security interest in the Purchased
Items hereunder to the Deal Agent as agent for the Secured Parties;

     (v) Upon the filing of the UCC Financing Statements describing the Purchased Items, in
the jurisdictions and recording offices listed on Schedule 7 attached hereto, the
security interests granted hereunder in the Purchased Items shall constitute fully perfected
first priority security interests under the Uniform Commercial Code in all right, title and
interest of the Seller in, to and under such Purchased Items that can be perfected by filing
under the UCC;

     (vi) Upon execution and delivery of the Account Agreement, the Purchaser or its
designee shall either be the owner of, or the Deal Agent as agent for the Secured Parties
shall have a valid and fully perfected first priority security interest in, the Collection
Account, the Homewood Interest Reserve and the deposits and investment property on deposit
in each of the foregoing accounts;

     (vii) The Seller has not authorized the filing of and is not aware of any financing
statements against the Seller that include a description of collateral covering the
Purchased Items other than any financing statement (A) relating to the security interests
granted to the Seller under the Purchase Agreements (if any), (B) that has been terminated,
or (C) pursuant hereto. The Seller is not aware of the filing of any judgment or tax Lien
filings against the Seller;

     (viii) Upon receipt by Custodian of each Mortgage Note, Mezzanine Note or Junior
Interest Document, as applicable, endorsed in blank by a duly authorized officer of the
Seller and payment by the Purchaser of the applicable Purchase Price, either a purchase
shall have been completed by the Purchaser or its designee of each Mortgage Note or Junior
Interest Document, as applicable, or the Deal Agent as agent for the Secured Parties shall
have a valid and fully perfected first priority security interest in each Mortgage Note or
Junior Interest Document, as applicable;

     (ix) All original Mortgage Notes, Mezzanine Notes and Junior Interest Documents have
been, or, subject to the delivery requirements contained herein, will be delivered to the
Custodian; and

     (x) None of the Mortgage Notes, Mezzanine Notes or Junior Interest Documents has any
marks or notations indicating that they have been pledged, assigned or otherwise conveyed to
any Person other than the Deal Agent as agent for the Secured Parties.

(o) Location of Offices. The Seller’s location (within the meaning of Article 9 of the
UCC) is 333 Earle Ovington Boulevard, Uniondale, New York 11553. The office where the Seller keeps
all the records (within the meaning of Article 9 of the UCC) is at the address of the Seller
referred to in Section 13.2 hereof (or at such other locations as to which the notice and
other requirements specified in Subsection 5.1(n) shall have been satisfied). ARF’s
organizational number is 3739319. Arbor Realty’s organizational number is 3668030. ARSR Tahoe’s
organizational number is 4164613. The Seller has not changed its name, whether by amendment of its
certificate of incorporation, by reorganization or otherwise, and has not changed its location,
since the Closing Date.

          (p) Tradenames. The Seller has no trade names, fictitious names, assumed names or
“doing business as” names or other names under which it has done or is doing business.

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          (q) Value Given. The Seller shall have given reasonably equivalent value to each
Transferor in consideration for the transfer to the Seller of the Purchased Items under the
applicable Purchase Agreement, no such transfer shall have been made for or on account of an
antecedent debt owed by the Transferor thereunder to the Seller, and no such transfer is or may be
voidable or subject to avoidance under any section of the Bankruptcy Code.

          (r) [Reserved].

          (s) Compliance with Anti–Terrorism Laws. Neither the Seller, the Guarantor nor the
Pledgor (i) is or will be in violation of any Anti–Terrorism Law, (ii) is or will be a Prohibited
Person, (iii) conducts any business or engages in any transaction or dealing with any Prohibited
Person, including the making or receiving any contribution of funds, goods or services to or for
the benefit of any Prohibited Person, (iv) deals in, or otherwise engages in any transaction
relating to, any property or interests in property blocked pursuant to Executive Order No. 13224,
(v) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose
of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any
Anti–Terrorism Law, (vi) has more than 10% of its assets in a Prohibited Person or derives more
than 10% of its operating income from direct or indirect investments in, or transactions with, any
Prohibited Person, and (vii) engages in or will engage in any of the foregoing activities in the
future. To the extent applicable, each of the Seller, the Guarantor and the Pledgor has
established an adequate anti–money laundering compliance program as required by the Anti–Terrorism
Laws, has conducted the requisite due diligence in connection with the origination or acquisition
of each Mortgage Asset and each Purchased Asset for purposes of the Anti–Terrorism Laws, including
with respect to the legitimacy of the applicable Borrower and the origin of the assets used by the
said Borrower to purchase the property in question, and maintains, and will maintain, sufficient
information to identify the applicable Borrower for purposes of the Anti–Terrorism Laws. No
Mortgage Asset or Purchased Asset is subject to nullification pursuant to any Anti–Terrorism Law,
no Mortgage Asset is in violation of any Anti–Terrorism Law, and no Borrower is in violation of or
adversely affected by the provisions of any Anti–Terrorism Law nor listed as a Prohibited Person.
The proceeds of any Purchase Price have not been used and shall not be used to fund any operations
in, finance any investments or activities in or make any payments to a Prohibited Person.

          (t) Investment Company Act. Neither the Seller nor the Guarantor is, and neither is
controlled by, an “investment company” within the meaning of the 40 Act, as amended, or is exempt
from the provisions of the 40 Act.

          (u) ERISA. The Seller, the Guarantor and each ERISA Affiliate have made all required
contributions to each Benefit Plan subject to Section 412 of the Code, and no application for a
funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has
been made with respect to any Benefit Plan. Neither the Seller, the Guarantor nor any ERISA
Affiliate has incurred, or reasonably expects to incur, any liability (and no event has occurred
which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under
Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan, nor has there been a complete
or partial withdrawal by the Seller, the Guarantor or any ERISA Affiliate from a Multiemployer Plan
or notification that a Multiemployer Plan is in reorganization. The present value of all benefits
vested under all “employee pension benefit plans,” as such term is defined in Section 3(2) of
ERISA, maintained by each of the Seller and the Guarantor, or in which employees of the Seller or
the Guarantor are entitled to participate, as from time to time in effect (herein called the
“Pension Plans”), does not exceed the value of the assets of the Pension Plan allocable to
such vested benefits (based on the value of such assets as of the last annual valuation date). No
prohibited transactions, accumulated funding deficiencies, withdrawals or reportable events have
occurred with respect to any Pension Plans that, in the aggregate, could subject the Seller or the
Guarantor to any material tax, penalty or other liability. No Lien in favor of the PBGC or a
Pension Plan has arisen or is

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likely to arise on account of any Pension Plan. No notice of intent to terminate a Pension
Plan under Section 4041(b) of ERISA has been filed, nor has any Pension Plan been terminated under
Section 4041(c) of ERISA, nor has the PBGC instituted proceedings to terminate or appoint a trustee
to administer a Pension Plan, and no event has occurred or condition exists that might constitute
grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to
administer, any Pension Plan.

          (v) PUHCA. Neither the Seller nor the Guarantor is a “holding company” or a
subsidiary holding company” of a “holding company” within the meaning of the Public Utility Holding
Company Act of 1935, as amended, or any successor statute.

          (w) Compliance with Law. Each of the Seller and the Guarantor has complied in all
respects with all Applicable Laws to which it may be subject, and no Purchased Item contravenes any
Applicable Laws (including, without limitation, laws, rules and regulations relating to licensing,
truth in lending, fair credit billing, fair credit reporting, equal credit opportunity, fair debt
collection practices and privacy).

          (x) Income. The Seller acknowledges that all Income received by it or its Affiliates
and the Servicers or PSA Servicer with respect to the Purchased Items sold hereunder are held and
shall be held for the benefit of the Deal Agent as agent for the Secured Parties until deposited
into the Collection Account as required herein.

          (y) Set–Off, etc. No Purchased Item has been compromised, adjusted, extended,
satisfied, subordinated, rescinded, set–off or modified by the Seller, the Transferor or the
Borrower thereof, and no Purchased Item is subject to compromise, adjustment, extension (except as
set forth in the related Mortgage Asset File), satisfaction, subordination, rescission, set–off,
counterclaim, defense, abatement, suspension, deferment, deduction, reduction, termination or
modification, whether arising out of transactions concerning the Purchased Item or otherwise, by
the Seller, the Transferor or the Borrower with respect thereto, except for amendments to such
Purchased Assets otherwise permitted under Section 6.10 of this Agreement.

          (z) Full Payment. Neither the Seller nor the Guarantor has knowledge of any fact that
should lead it to expect that any Purchased Asset will not be paid in full.

          (aa) [Reserved].

          (bb) Assignments. The Assignments do not violate any provisions of the underlying
Mortgage Loan Documents, such documents do not contain any express or implied prohibitions on sales
or assignments of such Purchased Assets, and such agreements are valid, binding and enforceable
against the Seller.

          (cc) Eligibility of Purchased Assets. With respect to each Purchased Asset, each
representation and warranty on Schedule 1 is true and correct.

          (dd) Acting as Principal. The Seller will engage in such Transactions as principal,
or, if agreed in writing in advance of any Transaction by the Deal Agent in its discretion, as
agent for a disclosed principal.

          (ee) No Broker. The Seller has not dealt with any broker, investment banker, agent,
or other Person, except for the Deal Agent or the Purchaser (or an Affiliate of the Deal Agent or
the Purchaser), who may be entitled to any commission or compensation in connection with the sale
of Purchased Assets pursuant to this Agreement.

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          (ff) Ability to Perform. Neither the Seller nor the Guarantor believes, nor does
either have any reason or cause to believe, that it cannot perform each and every agreement and
covenant contained in the Repurchase Documents applicable to it to which it is a party.

          (gg) No Default. No Default or Event of Default has occurred and is continuing
hereunder.

          (hh) Financial Condition.

     (i) The consolidated balance sheet of ART and its Consolidated Subsidiaries provided to
the Deal Agent and the related consolidated statements of income and retained earnings and
of cash flows, copies of which have heretofore been furnished to the Deal Agent, are
complete and correct and present fairly the consolidated financial condition of ART and its
Consolidated Subsidiaries as at such date, and the consolidated results of their operations
and their consolidated cash flows as of the date of such financial statements and other
information. All such financial statements, including the related schedules and notes
thereto (if any), have been prepared in accordance with GAAP applied consistently throughout
the periods involved (except as disclosed therein). Except as set forth on Schedule
6 attached hereto, neither ART nor any of its Consolidated Subsidiaries had, at the date
of the most recent balance sheet referred to above, any material contingent liability or
liability for taxes, or any long term lease or unusual forward or long term commitment,
including, without limitation, any interest rate or foreign currency swap or exchange
transaction or other financial derivative, that is not reflected in the foregoing statements
or in the notes thereto. During the period from the date of the financial statements and
other financial information delivered to the Deal Agent, to and including the date hereof,
there has been no sale, transfer or other disposition by ART or any of its Consolidated
Subsidiaries of any material part of its business or property and no purchase or other
acquisition of any business or property (including any Equity Interest of any other Person)
material in relation to the consolidated financial condition of ART and its Consolidated
Subsidiaries on the date hereof.

     (ii) The operating forecast and cash flow projections of ART and its Consolidated
Subsidiaries, copies of which have heretofore been furnished to the Deal Agent, have been
prepared in good faith under the direction of a Responsible Officer of ART and in accordance
with GAAP. ART has no reason to believe that as of the date of delivery thereof such
operating forecast and cash flow projections are materially incorrect or misleading in any
material respect or omit to state any material fact which would render them misleading in
any material respect. ART shall not be required to provide information in its projections
if the disclosure of such information would violate Applicable Laws relating to insider
trading.

          (ii) Servicing Agreements. The Seller has delivered to the Deal Agent all Servicing
Agreements and all Pooling and Servicing Agreements with respect to the Purchased Assets, and, to
the best of the Seller’s knowledge, no material default or event of default exists thereunder.

          (jj) Existing Financing Facilities. All credit facilities, repurchase facilities or
substantially similar facilities of the Seller and the Guarantor that are presently in effect are
listed under the definition of “Existing Financing Facilities.” To the Seller’s and the
Guarantor’s knowledge, no material defaults or events of default exist thereunder. Other than the
Bank Repurchase Facility, ARF and ARSR Tahoe are not a party to any Existing Financing Facility.

          (kk) [Reserved].

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          (ll) True and Complete Disclosure. To the Seller’s and the Guarantor’s actual
knowledge, the information, reports, certificates, documents, financial statements, books, records,
files, exhibits and schedules furnished in writing by or on behalf of each of the Seller and the
Guarantor to the Deal Agent, the Purchaser or the other Affected Parties in connection with the
negotiation, preparation or delivery of this Agreement and the other Repurchase Documents or
included herein or therein or delivered pursuant hereto or thereto, when taken as a whole, do not
contain any untrue statement of material fact or omit to state any material fact necessary to make
the statements herein or therein, in light of the circumstances under which they were made, not
misleading. All written information furnished after the date hereof by or on behalf of each of the
Seller and the Guarantor to the Deal Agent, the Purchaser or the other Affected Parties in
connection with this Agreement and the other Repurchase Documents and the transactions contemplated
hereby and thereby will be true, complete and accurate in every material respect, or (in the case
of projections) based on reasonable estimates, on the date as of which such information is stated
or certified. There is no fact known to a Responsible Officer of the Seller or the Guarantor,
after due inquiry, that could reasonably be expected to have a Material Adverse Effect that has not
been disclosed to the Deal Agent, the Purchaser or the other Affected Parties. All projections
furnished on behalf of the Seller or the Guarantor to the Deal Agent, the Purchaser or the other
Affected Parties were prepared and presented in good faith by or on behalf of the Seller or the
Guarantor.

          (mm) No Reliance. Each of the Seller and the Guarantor has made its own independent
decisions to enter into the Repurchase Documents and each Transaction and as to whether such
Transaction is appropriate and proper for it based upon its own judgment and upon advice from such
advisors (including, without limitation, legal counsel and accountants) as it has deemed necessary.
Each of the Seller and the Guarantor is not relying upon any advice from the Deal Agent, the
Purchaser or any Affected Party as to any aspect of the Transactions, including, without
limitation, the legal, accounting or tax treatment of such Transactions.

          (nn) [Reserved].

          (oo) Insurance. Each of the Seller and the Guarantor has and maintains, with respect
to its Properties and business, insurance which meets the requirements of Subsection
5.1(nn). In addition, the Seller shall maintain the insurance required by Section 5.7
of the Custodial Agreement.

          (pp) Purchased Assets. (i) There are no outstanding rights, options, warrants or
agreements for the purchase, sale or issuance of the Purchased Assets created by, through, or as a
result of the Seller’s or the Guarantor’s actions or inactions; (ii) there are no agreements on the
part of any Repurchase Party to issue, sell or distribute the Purchased Assets, other than this
Agreement, and (iii) the Seller has no obligation (contingent or otherwise) to purchase, redeem or
otherwise acquire any securities or any interest therein or to pay any dividend or make any
distribution in respect of the Purchased Assets.

          (qq) No Change. Since September 30, 2003 there has been no development or event, nor
any prospective development or event, which has had or could reasonably be expected to have a
Material Adverse Effect.

          (rr) Subsidiaries. The Seller is a Subsidiary of ART, the Sellers have no
Subsidiaries other than those listed on Schedule 8, and Schedule 8 sets forth the
name of each direct or indirect Subsidiary of the Seller and the Guarantor.

          (ss) Labor Relations. Neither the Seller nor the Guarantor is engaged in any unfair
labor practice which could reasonably be expected to have a Material Adverse Effect. There is (i)
no unfair labor practice complaint pending or, to the best knowledge of each of the Seller and the
Guarantor and each of the Subsidiaries, threatened against the Seller or the Guarantor before the
National Labor

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Relations Board which could reasonably be expected to have a Material Adverse Effect and no
grievance or arbitration proceeding arising out of or under a collective bargaining agreement is so
pending or, to the knowledge of the Repurchase Parties, threatened, (ii) no strike, labor dispute,
slowdown or stoppage pending or, to the best knowledge of each of the Seller and the Guarantor,
threatened against the Seller or the Guarantor, and (iii) no union representation question existing
with respect to the employees of a Repurchase Party and to the knowledge of the Repurchase Parties,
no union organizing activities are taking place with respect to any thereof.

          (tt) Separateness. As of the date hereof, the Seller (other than Arbor Realty) (i)
owns no assets, and does not engage in any business, other than the assets and transactions
specifically contemplated by this Agreement; (ii) has not incurred any indebtedness or obligation,
secured or unsecured, direct or indirect, absolute or contingent (including guaranteeing any
obligation), other than (W) with respect to Retained Interests, (X) commitments to make loans which
may become Eligible Assets, and (Y) as permitted herein; (iii) has not made any loans or advances
to any Affiliate other than loans to the Guarantor that have been disclosed in writing to and
approved in writing by the Deal Agent, and has not acquired obligations or securities of its
Affiliates; (iv) has paid its debts and liabilities (including, as applicable, shared personnel and
overhead expenses) only from its own assets; (v) complies with the provisions of its organizational
documents; (vi) does all things necessary to observe organizational formalities and to preserve its
existence, and has not amended, modified or otherwise changed its Authority Documents, or suffered
same to be amended, modified or otherwise changed; (vii) maintains all of its books, records,
financial statements and bank accounts separate from those of its Affiliates (except that such
financial statements may be consolidated to the extent consolidation is required under the GAAP
consistently applied or as a matter of Applicable Law); (viii) is, and at all times holds itself
out to the public as, a legal entity separate and distinct from any other entity (including any
Affiliate), corrects any known misunderstanding regarding its status as a separate entity, conducts
business in its own name, does not identify itself or any of its Affiliates as a division or part
of the other; (ix) maintains adequate capital for the normal obligations reasonably foreseeable in
a business of its size and character and in light of its contemplated business operations; (x) does
not engage in or suffer any change of ownership, dissolution, winding up, liquidation,
consolidation or merger in whole or in part; (xi) does not commingle its funds or other assets with
those of any Affiliate or any other Person; (xii) maintains its accounts separately from those of
any Affiliate or any other Person; (xiii) does not hold itself out to be responsible for the debts
or obligations of any other Person; (xiv) has not (A) filed or consented to the filing of any
Insolvency Proceeding with respect to the Seller, instituted any proceedings under any applicable
Insolvency Law or otherwise sought any relief under any laws relating to the relief from debts or
the protection of debtors generally with respect to the Seller, (B) sought or consented to the
appointment of a receiver, liquidator, assignee, trustee, sequestrator, custodian or any similar
official for the Seller or a substantial portion of its properties or (C) made any assignment for
the benefit of the Seller’s creditors; (xv) has at least one (1) Independent Director or such
greater number as required by the Deal Agent or any Rating Agency; (xvi) shall maintain an arm’s
length relationship with its Affiliates; (xvii) maintain a sufficient number of employees in light
of contemplated business operations; (xviii) use separate stationary, invoices and checks; and
(xvix) allocate fairly and reasonably any overhead for shared office space.

          (uu) No Defenses. There are no defenses, offsets, counterclaims, abatements, rights
of rescission or other claims, legal or equitable, available to the Seller or the Guarantor or any
other Person with respect to this Agreement, the Repurchase Documents or any other instrument,
document and/or agreement described herein or therein, as modified and amended hereby, or with
respect to the obligation of the Seller to repay the Aggregate Unpaids and other amounts due
hereunder.

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ARTICLE V

COVENANTS

          Section 5.1 Covenants.

          From the date hereof until the Aggregate Unpaids are paid in full:

          (a) Compliance with Laws. Each of the Seller and the Guarantor will comply in all
material respects with all Applicable Laws (including Environmental Laws), including those with
respect to the Purchased Items or any part thereof, and all Contractual Obligations.

          (b) Preservation of Company Existence. Each of the Seller and the Guarantor will
preserve and maintain its corporate, limited liability company or limited partnership, as
applicable, existence, rights, franchises and privileges in the jurisdiction of its formation or
organization and will qualify and remain qualified in good standing as a corporation, limited
liability company or limited partnership, as applicable, in each jurisdiction where the failure to
preserve and maintain such existence, rights, franchises, privileges and qualification has had, or
could reasonably be expected to have, a Material Adverse Effect.

          (c) Performance and Compliance with Purchased Assets. The Seller will, at its
expense, timely and fully perform and comply (or cause the Transferors to perform and comply
pursuant to the Purchase Agreements) with all provisions, covenants and other promises required to
be observed by it under the Purchased Items and all other agreements related to such Purchased
Items.

          (d) Keeping of Records and Books of Account. Each of the Seller and the Guarantor
will maintain and implement administrative and operating procedures (including, without limitation,
an ability to recreate records evidencing the Purchased Items in the event of the destruction of
the originals thereof) and will keep and maintain all documents, books, records and other
information reasonably necessary or advisable in which complete entries are made in accordance with
GAAP and Applicable Laws.

          (e) Perfection. The Seller will (i) acquire such Purchased Items pursuant to and in
accordance with the terms of the Purchase Agreements, (ii) take all action necessary to perfect,
protect and more fully evidence the Seller’s ownership of such Mortgage Assets under the Purchase
Agreements free and clear of any Lien other than the Lien created hereunder and Permitted Liens,
including, without limitation, (A) file and maintain effective financing statements against the
Transferors in all necessary or appropriate filing offices, and filing continuation statements,
amendments or assignments with respect thereto in such filing offices, and (B) execute or cause to
be executed such other instruments or notices as may be necessary or appropriate, and (iii) take
all additional action that the Deal Agent may reasonably request to perfect, protect and more fully
evidence the respective interests of the parties to this Agreement in the Purchased Items.

          (f) Delivery of Income. The Seller will deposit and cause all Servicers to deposit
all Income received in respect of the Purchased Items into the Collection Account within two (2)
Business Days of receipt thereof. The Seller shall instruct all PSA Servicers under the Pooling
and Servicing Agreements to deposit into the Collection Account within two (2) Business Days of the
date the PSA Servicer is obligated to disburse the same under the Pooling and Servicing Agreements
all Income in respect of the Purchased Items and the Seller shall take reasonable steps necessary
to enforce such instructions.

          (g) Events of Default. Each of the Seller and the Guarantor will provide the Deal
Agent with immediate written notice of the occurrence of each Event or Default and each Default of
which the Seller

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or the Guarantor has knowledge or has received notice. In addition, no later than two (2)
Business Days following the Seller’s or the Guarantor’s knowledge or notice of the occurrence of
any Event of Default or Default, the Seller or the Guarantor will provide to the Deal Agent a
written statement of a Responsible Officer of the Seller or the Guarantor setting forth the details
of such event and the action that the Seller or the Guarantor proposes to take with respect
thereto.

          (h) Adverse Claims. The Seller will not create, or participate in the creation of, or
permit to exist, any Liens in relation to each Purchased Item other than Permitted Liens or as
disclosed to the Deal Agent and existing as of the date of this Agreement.

          (i) Seller’s Assets. With respect to each Purchased Item acquired by the Purchaser or
its designee, the Seller will (i) take all action necessary to perfect, protect and more fully
evidence the ownership of the Purchaser or it designee in such Purchased Item, including, without
limitation, (A) filing and maintaining effective financing statements against the Seller in all
necessary or appropriate filing offices, and filing continuation statements, amendments or
assignments with respect thereto in such filing offices, and (B) executing or causing to be
executed such other instruments or notices as may be necessary or appropriate and (ii) taking all
additional action that the Deal Agent may reasonably request to perfect, protect and more fully
evidence the respective interests of the parties to this Agreement and the Repurchase Documents in
such Purchased Items.

          (j) Notices. Each of the Seller and the Guarantor will furnish notice to the Deal
Agent with respect to the following:

     (i) Representations. Forthwith upon receiving knowledge of the same, the
Seller or the Guarantor shall notify the Deal Agent if any representation or warranty set
forth in Section 4.1 or Schedule 1 was incorrect at the time it was given or
deemed to have been given and at the same time shall deliver to the Deal Agent a written
notice setting forth in reasonable detail the nature of such facts and circumstances. In
particular, but without limiting the foregoing, the Seller and the Guarantor shall notify
the Deal Agent in the manner set forth in the preceding sentence before any Purchase Date of
any facts or circumstances within the knowledge of the Seller or the Guarantor that would
render any of the said representations and warranties untrue at the date when such
representations and warranties were made or deemed to have been made;

     (ii) Proceedings. As soon as possible and in any event within three (3)
Business Days after the Seller or the Guarantor receives notice or obtains knowledge
thereof, notice of any settlement of, material judgment (including a material judgment with
respect to the liability phase of a bifurcated trial) in or commencement of any labor
controversy (of a material nature), litigation, action, suit, arbitration or proceeding
before any court or governmental department, commission, board, bureau, agency, arbitrator,
investigation or instrumentality, domestic or foreign, affecting (A) the Purchased Items,
(B) the Repurchase Documents, (C) the Deal Agent’s, the Purchaser’s or any Secured Party’s
interest in the Purchased Items, or (D) the Seller or the Guarantor or any of their
Affiliates and, with respect to this clause (D) only, the amount in controversy
exceeds $250,000;

     (iii) Material Events. Promptly upon becoming aware thereof, notice of any
other event or circumstances that, in the reasonable judgment of the Seller or the
Guarantor, is likely to have a Material Adverse Effect;

     (iv) Casualty. With respect to any Purchased Asset hereunder, promptly upon
receipt of notice or knowledge that the Underlying Mortgaged Property has been damaged by
waste, fire,

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earthquake or earth movement, flood, tornado or other casualty, or otherwise damaged so
as to affect adversely the Asset Value of such Purchased Asset;

     (v) Liens. Promptly upon receipt of notice or knowledge of any Lien or
security interest on, or claim asserted against, any Purchased Item other than Permitted
Liens;

     (vi) Assets. Promptly upon any material change in the market value of any or
all of the Seller’s or the Guarantor’s assets that could reasonably be expected to have a
Material Adverse Effect;

     (vii) Defaults. (A) Any material default (beyond any applicable notice and
cure period) related to any Purchased Item, or (B) any default (beyond any applicable notice
and cure period) under any Contractual Obligation of the Seller or the Guarantor or any of
their Subsidiaries, which, if not cured, could reasonably be expected to have a Material
Adverse Effect;

     (viii) Servicers. The resignation or termination of any Servicer under any
Servicing Agreement with respect to any Purchased Asset or any PSA Servicer under a Pooling
and Servicing Agreement;

     (ix) Sales. The conveyance, sale, lease, assignment, transfer or other
disposition (any such transaction, or related series of transactions, a “Sale”) of
any Property, business or assets of the Seller or the Guarantor whether now owned or
hereafter acquired, with the exception of (A) this Agreement and (B) any Sale of Property by
the Seller or the Guarantor that is not material to the conduct of its business and is
effected in the ordinary course of business;

     (x) Ratings. The establishment of a rating assigned to the long–term unsecured
debt issued by the Guarantor by Moody’s or S&P (or other rating agency acceptable to the
Deal Agent) and of any downgrade in such rating once established;

     (xi) Losses. Any loss or expected loss in respect of any Purchased Asset, or
any other event or change in circumstances or expected event or change in circumstances that
could be reasonably be expected to result in a material decline in value or cash flow of any
Purchased Asset; and

     (xii) Senior Interests. The Seller shall provide written notice to the Deal
Agent at least ten (10) days prior to the Seller, any Guarantor or any Affiliate thereof
acquiring any interest that would be senior in priority to any existing Purchased Asset.

Each notice pursuant to this Subsection 5.1(j) shall be accompanied by a statement of a
Responsible Officer of the Seller or the Guarantor, as applicable, setting forth details of the
occurrence referred to therein and stating what action the Seller or the Guarantor, as applicable,
has taken or proposes to take with respect thereto.

          (k) Purchased Assets Not to be Evidenced by Instruments. Neither the Seller nor the
Guarantor will take any action to cause any Purchased Item that is not, as of the applicable
Purchase Date, evidenced by an Instrument to be so evidenced except in connection with the
enforcement or collection of such Purchased Items.

          (l) Security Interests. The Seller will not sell, pledge, assign or transfer to any
other Person, or grant, create, incur, assume or suffer to exist any Lien on any Purchased Item
other than Permitted

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Liens, whether now existing or hereafter transferred hereunder, or any interest therein, and
the Seller will not sell, pledge, assign or suffer to exist any Lien on its interest, if any,
hereunder. The Seller will promptly notify the Deal Agent of the existence of any Lien other than
Permitted Liens on any Purchased Item, and the Seller shall defend the right, title and interest of
the Deal Agent, the Purchaser and the Secured Parties in, to and under the Purchased Items against
all claims of third parties other than Permitted Liens.

          (m) Deposits. Subject to Subsection 2.8(c), the Seller will not deposit or
otherwise credit, or cause or permit to be so deposited or credited, to the Collection Account or
Homewood Interest Reserve cash or cash proceeds other than (i) in the case of the Collection
Account, Income in respect of Purchased Items, and (ii) in the case of the Homewood Interest
Reserve, the interest reserve amounts for the Homewood Purchased Asset.

          (n) Change of Name or Location of Loan Files. The Seller shall not (i) change its
name, organizational number, identity, structure or jurisdiction of formation, move the location of
its principal place of business and chief executive office, or change the offices where it keeps
the records (as defined in the UCC) from the location referred to in Section 13.2, or (ii)
move, or consent to the Custodian moving, the Mortgage Asset Files from the location thereof on the
Closing Date, unless the Seller has given at least thirty (30) days’ prior written notice to the
Deal Agent and has taken all actions required under the UCC of each relevant jurisdiction in order
to continue the first priority perfected security interest of the Deal Agent as agent for the
Secured Parties in the Purchased Items.

          (o) Exceptions. The Seller shall promptly correct any and all Exceptions set forth on
any Asset Schedule and Exception Report.

          (p) ERISA Matters. Neither the Seller nor the Guarantor will (i) engage or permit any
ERISA Affiliate to engage in any prohibited transaction for which an exemption is not available or
has not previously been obtained from the United States Department of Labor, (ii) permit to exist
any accumulated funding deficiency, as defined in Section 302(a) of ERISA and Section 412(a) of the
Code, or funding deficiency with respect to any Benefit Plan other than a Multiemployer Plan, (iii)
fail to make any payments to a Multiemployer Plan that the Seller, the Guarantor or any ERISA
Affiliate may be required to make under the agreement relating to such Multiemployer Plan or any
law pertaining thereto, (iv) terminate any Benefit Plan so as to result in any liability, (v)
permit to exist any occurrence of any Reportable Event or (vi) otherwise violate the provisions of
ERISA or the Code with respect to any Benefit Plan.

          (q) Purchase Agreements; Servicing Agreements. The Seller and Guarantor will not
materially amend, modify, waive or terminate any provision of any Purchase Agreement, Servicing
Agreement or Pooling and Servicing Agreement without the prior written consent of the Deal Agent.
Notwithstanding the foregoing, but subject to the Deal Agent’s and the Purchaser’s rights under
Article VI, the Seller shall have the right to terminate any of the foregoing upon the
occurrence of a material default (beyond any applicable notice and cure period) of the other party
thereto.

          (r) Compliance with Anti–Terrorism Laws. The Seller, the Guarantor and the Pledgor
shall comply with all applicable Anti–Terrorism Laws. The Seller shall conduct the requisite due
diligence in connection with the origination or acquisition of each Mortgage Asset for purposes of
complying with the Anti–Terrorism Laws, including with respect to the legitimacy of the applicable
Borrower, obligor or account debtor and the origin of the assets used by the said Borrower, obligor
or account debtor to purchase the property in question, and will maintain sufficient information to
identify the applicable Borrower, obligor or account debtor for purposes of the Anti–Terrorism
Laws. Neither the Seller, the Guarantor nor the Pledgor shall engage in any conduct described in
Subsection 4.1(s). The Seller, the

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Guarantor and the Pledgor shall, upon the request of the Deal Agent from time to time, provide
certification and other evidence of the Seller’s, the Guarantor’s or the Pledgor’s compliance with
this Subsection 5.1(r).

          (s) Financial Statements. The Seller and the Guarantor, as applicable, shall deliver
to the Deal Agent:

     (i) as soon as available, and in any event within forty–five (45) calendar days after
the end of each fiscal quarter of each of the Seller and ART, the unaudited consolidated
balance sheets of the Seller, ART and ART’s Consolidated Subsidiaries as at the end of such
period and the related unaudited consolidated statements of income and retained earnings and
of cash flows for the Seller, ART and ART’s Consolidated Subsidiaries for such period and
the portion of the fiscal year through the end of such period, accompanied by a certificate
of a Responsible Officer of the Seller and ART, which certificate shall state that said
consolidated financial statements fairly present in all material respects the consolidated
financial condition and results of operations of the Seller, ART and ART’s Consolidated
Subsidiaries in accordance with GAAP, consistently applied, as at the end of, and for, such
period (subject to normal year–end adjustments);

     (ii) as soon as available, and in any event within ninety (90) days after the end of
each fiscal year of ART, the audited consolidated balance sheets of ART and ART’s
Consolidated Subsidiaries as at the end of such fiscal year and the related consolidated
statements of income and retained earnings and of cash flows for ART and ART’s Consolidated
Subsidiaries for such year, setting forth in each case in comparative form the figures for
the previous year, accompanied by an opinion thereon of independent certified public
accountants of recognized national standing, which opinion shall not be qualified as to
scope of audit or going concern and shall state that said consolidated financial statements
fairly present the consolidated financial condition and results of operations of ART and
ART’s Consolidated Subsidiaries as at the end of, and for, such fiscal year in accordance
with GAAP;

     (iii) with respect to each Purchased Asset, if provided to the Seller or any Servicer
or PSA Servicer by the Borrower under any Purchased Asset, as soon as available, but in any
event not later than forty–five (45) days after the end of each fiscal quarter of the
Seller, the operating statement and rent roll for each Underlying Mortgaged Property;
provided, however, the Deal Agent reserves the right in its reasonable
discretion to request such information on a monthly basis (to be provided no later than
thirty (30) days after the end of each month);

     (iv) with respect to each Purchased Asset, if provided to the Seller by the Borrower
under any Purchased Asset, as soon as available, but in any event not later than thirty (30)
days after receipt thereof, the annual balance sheet with respect to such Borrower;

     (v) with respect to each Purchased Asset, as soon as available but in any event not
later than thirty (30) days after receipt thereof, (A) the related monthly securitization
report, if any, and any other reports delivered under the Pooling and Servicing Agreements
to the Seller, if any, and, (B) within forty–five (45) days after the end of each quarter, a
copy of the standard monthly exception report, prepared by the Seller in the ordinary course
of its business in respect of the related Purchased Asset or Underlying Mortgaged Property;

     (vi) from time to time such other information regarding the financial condition,
operations or business of the Seller and the Guarantor as the Deal Agent may reasonably
request;

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          (vii) as soon as reasonably possible, and in any event within thirty (30) days after a
Responsible Officer of the Seller or Guarantor knows, or with respect to any Plan or
Multiemployer Plan to which the Seller, the Guarantor or any ERISA Affiliate makes direct
contributions, has reason to believe, that any of the events or conditions specified below
with respect to any Plan or Multiemployer Plan has occurred or exists, a statement signed by
a senior financial officer of the Seller or the Guarantor setting forth details respecting
such event or condition and the action, if any, that the Seller, the Guarantor or their
ERISA Affiliate proposes to take with respect thereto (and a copy of any report or notice
required to be filed with or given to the PBGC by the Seller, the Guarantor or an ERISA
Affiliate with respect to such event or condition):

     (A) any Reportable Event (provided that a failure to meet the minimum funding
standard of Section 412 of the Code or Section 302 of ERISA or any successor
provision thereof, including without limitation the failure to make on or before its
due date a required installment under Section 412(m) of the Code or Section 302(e)
of ERISA or any successor provision thereof, shall be a “Reportable Event”
regardless of the issuance of any waivers in accordance with Section 412(d) of the
Code or any successor provision thereof); and any request for a waiver under Section
412(d) of the Code or any successor provision thereof for any Plan;

     (B) the distribution under Section 4041(c) of ERISA or any successor provision
thereof of a notice of intent to terminate any Plan or any action taken by the
Seller, the Guarantor or an ERISA Affiliate to terminate any Plan;

     (C) the institution by the PBGC of proceedings under Section 4042 of ERISA or
any successor provision thereof for the termination of, or the appointment of a
trustee to administer, any Plan, or the receipt by the Seller, the Guarantor or any
ERISA Affiliate of a notice from a Multiemployer Plan that such action has been
taken by the PBGC with respect to such Multiemployer Plan;

     (D) the complete or partial withdrawal from a Multiemployer Plan by the Seller,
the Guarantor or any ERISA Affiliate that results in liability under Section 4201 or
4204 of ERISA or any successor provision thereof (including the obligation to
satisfy secondary liability as a result of a purchaser default) that would have a
Material Adverse Effect or the receipt by the Seller, the Guarantor or any ERISA
Affiliate of notice from a Multiemployer Plan that it is in reorganization or
insolvency pursuant to Section 4241 or 4245 of ERISA or any successor provision
thereof or that it intends to terminate or has terminated under Section 4041A of
ERISA or any successor provision thereof;

     (E) the institution of a proceeding by a fiduciary of any Multiemployer Plan
against the Seller, the Guarantor or any ERISA Affiliate to enforce Section 515 of
ERISA or any successor provision thereof, which proceeding is not dismissed within
thirty (30) days; and

     (F) the adoption of an amendment to any Plan that would result in the loss of
tax exempt status of the trust of which such Plan is a part if the Seller, the
Guarantor or an ERISA Affiliate fails to provide timely security to such Plan in
accordance with the provisions of Section 401(a)(29) of the Code or Section 307 of
ERISA or any successor provision thereof; and

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     (viii) all such financial statements shall be complete and correct in all material
respects and shall be prepared in reasonable detail and in accordance with GAAP applied
consistently throughout the periods reflected therein and with prior periods (except as
approved by such accountants or officer, as the case may be, and disclosed therein);
provided, that any financial statements delivered by the Seller with respect to the Borrower
under any Underlying Mortgage Loan shall be delivered to the Deal Agent in the form received
by the Seller.

          (t) Certificates; Other Information. The Seller and the Guarantor, as applicable,
shall furnish to the Deal Agent:

     (i) concurrently with the delivery of the financial statements referred to in
Subsections 5.1(s)(i) and (ii) above and in connection with the delivery of
each Confirmation, a Compliance Certificate from a Responsible Officer of each of the Seller
and ART, which Compliance Certificate shall, among other things, on a quarterly basis
describe in detail the calculations supporting the Responsible Officer’s certification of
ART’s compliance with the Financial Covenants;

     (ii) as soon as available, but in any event not later than ninety (90) days after the
end of each fiscal year of the Seller and ART, respectively, and provided that the
disclosure does not violate Applicable Laws relating to insider trading, a copy of the
projections of the Seller (if any) and ART of the operating budget and cash flow budget of
Seller (if any) and ART, respectively, for the succeeding fiscal year, such projections to
be accompanied by a certificate of a Responsible Officer certifying that such projections
have been prepared in good faith based upon reasonable assumptions;

     (iii) promptly upon receipt thereof, copies of all reports submitted to each of the
Seller (if any) and ART by independent certified public accountants in connection with each
annual, interim or special audit of the books and records of the Seller (if applicable) and
ART made by such accountants, including, without limitation, any management letter
commenting on the Seller’s and ART’s internal controls submitted by such accountants to
management in connection with their annual audit;

     (iv) within forty–five (45) days of the end of each calendar quarter, the Seller shall
provide the Deal Agent with a quarterly report, which report shall include, among other
items, a summary of such Seller’s delinquency and loss experience with respect to Purchased
Assets serviced by the Seller or any Servicer or PSA Servicer or any designee of the
foregoing, the Seller’s internal risk rating and/or surveillance on the Purchased Assets,
and, to the extent provided to the Seller or any Servicer or PSA Servicer by the Borrowers
under any Purchased Assets, operating statements, the occupancy status of such Purchased
Property and other property level information plus any such additional reports as
the Deal Agent may reasonably request with respect to the Seller or any Servicer or PSA
Servicer servicing portfolio or pending originations of Mortgage Assets;

     (v) within thirty (30) days after the same are sent, copies of all financial
statements, reports, notices and other documents that each of the Seller and ART sends to
its stockholders and, within thirty (30) days after the same are filed, copies of all
financial statements and reports that the Seller and ART may make to, or file with, the
Securities and Exchange Commission or any successor or analogous Governmental Authority;

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     (vi) no later than the fifteenth (15th) day of each month, with respect to each
Purchased Asset, a Purchased Asset Data Summary, substantially in the form of Exhibit
XI (“Purchased Asset Data Summary”), properly completed;

     (vii) to the extent not prohibited by Applicable Law, the Seller shall promptly provide
the Deal Agent with copies of all documents that the Seller, the Guarantor or any Subsidiary
of the Seller or the Guarantor is required to file with any regulatory body in accordance
with its regulations;

     (viii) the Seller shall promptly deliver or cause to be delivered to the Deal Agent (i)
any report or material notice received by the Seller from any obligor under the Purchased
Assets promptly following receipt thereof and (ii) any other such document or information
relating to the Purchased Assets as the Deal Agent may reasonably request in writing from
time to time;

     (ix) upon request, an updated organizational chart of the Seller, the Guarantor and
their Affiliates; and

     (x) promptly, such additional financial and other information as the Deal Agent may
from time to time reasonably request.

          (u) Existence, etc. Each of the Seller and the Guarantor shall:

     (i) continue to engage in business of the same general type as now conducted by it and
maintain and preserve its legal existence and all of its material rights, privileges,
licenses and franchises necessary for the operation of its business; provided,
however, that nothing in this Subsection 5.1(u) shall prohibit any
transaction expressly permitted under Subsection 5.1(v);

     (ii) pay and discharge all taxes, assessments and governmental charges or levies
imposed on it or on its income or profits or on any of its Property prior to the date on
which penalties attach thereto, except for any such tax, assessment, charge or levy the
payment of which is being contested in good faith and by proper proceedings and against
which adequate reserves are being maintained in accordance with GAAP; and

     (iii) permit representatives of the Deal Agent, upon reasonable notice (unless a
Default or Event of Default shall have occurred and is continuing, in which case, no prior
notice shall be required) during normal business hours and at the expense of the Seller and
the Guarantor, to examine, copy and make extracts from the Seller’s, the Guarantor’s or any
of their Subsidiaries’ books and records, to inspect any of their Properties, and to discuss
its business and affairs with their officers, employees and independent accountants, all to
the extent reasonably requested by the Deal Agent.

          (v) Prohibition of Fundamental Changes. Neither the Seller nor the Guarantor shall
enter into any transaction of merger or consolidation or amalgamation, or liquidate, wind up or
dissolve itself (or suffer any liquidation, winding up or dissolution) or sell all or substantially
all of its assets (other than in connection with a CDO Issuance); provided,
however, that each of the Seller and the Guarantor may merge or consolidate with (i) any
wholly owned Subsidiary of the Seller or the Guarantor, respectively, or (ii) any other Person if
the Seller or the Guarantor, as applicable, is the surviving entity; and provided,
further, that, if after giving effect thereto, no Default or Event of Default would exist
hereunder.

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          (w) Margin Deficit. If at any time there exists a Margin Deficit, the Seller shall
cure such Margin Deficit in accordance with Section 2.7.

          (x) Transactions with Affiliates. Each of the Seller and the Guarantor may enter into
any transaction with an Affiliate, provided that such transaction is upon fair and
reasonable terms no less favorable to the Seller or the Guarantor than it would obtain in a
comparable arm’s length transaction with a Person that is not an Affiliate; provided,
further, that in no event shall the Seller transfer to the Purchaser or its designee
hereunder any Eligible Asset acquired by the Seller from an Affiliate of the Seller unless the
Seller shall have delivered a certified copy of the related Purchase Agreement and a True Sale
Opinion has been delivered to the Deal Agent prior to such sale.

          (y) Limitations on Guarantees. The Seller (other than Arbor Realty) shall not create,
incur, assume or suffer to exist any Guarantee Obligation.

          (z) Sub–Limits. The Seller shall not sell to the Purchaser or its designee any
Eligible Assets if, after giving effect to such Transactions, a Sub–Limit would be exceeded, unless
waived in writing by the Deal Agent in its discretion.

          (aa) Limitation on Distributions. Neither the Seller nor any Guarantor shall declare
or make any payment on account of, or set apart assets for, a sinking or other analogous fund for
the purchase, redemption, defeasance, retirement or other acquisition of any equity or partnership
interest of the Seller or Guarantor, as applicable, whether now or hereafter outstanding, or make
any other distribution in respect thereof, either directly or indirectly, whether in cash or
property or in obligations of Seller or a Guarantor, as applicable, except that the Seller and
Guarantor, as applicable, may each declare and pay dividends in an amount necessary to comply with
any Applicable Laws governing real estate investment trusts so long as (i) no Default or Event of
Default shall have occurred, (ii) no Margin Deficit is outstanding and (iii) in the case of ART,
the distribution of such funds will not violate any Financial Covenant.

          (bb) Maintenance of Liquidity. ART shall not permit, for any calendar quarter,
Liquidity for such Test Period to be less than $10,000,000, at least $5,000,000 of which shall
consist of cash or Cash Equivalents.

          (cc) Maintenance of Tangible Net Worth. ART shall not permit, for any Test Period,
Tangible Net Worth at any time to be less than the sum of (i) $282,000,000 plus, (ii) an
amount equal to 75% of the aggregate proceeds received by ART in connection with the offering or
issuance of any Equity Interest of ART after December 31, 2006, plus (iii) an amount equal
to 80% of the consolidated retained earnings of ART accrued after December 31, 2006.

          (dd) Maintenance of Ratio of Net Total Liabilities to Adjusted Tangible Net Worth.
ART shall not permit the ratio of its Net Total Liabilities to Adjusted Tangible Net Worth at any
time to be greater than 4:0 to 1:0.

          (ee) Total Leverage Ratio. ART shall not permit the ratio of its Adjusted Total
Liabilities to Tangible Total Assets to exceed 90%.

          (ff) Payout Restrictions. For any Test Period, measured on an accrual basis in
accordance with GAAP, ART shall not make payments in excess of 100% of Adjusted FFO.

          (gg) Fixed Charge. For any Test Period, ART shall maintain a minimum Fixed Charge
Coverage Ratio of 1.5x.

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          (hh) Unconsolidated Affiliates. (i) ART’s ownership of equity interests in
Unconsolidated Affiliates shall not exceed 10% of Tangible Net Worth; and (ii) ART may not encumber
in excess of 50% of the equity interests permitted under clause (i).

          (ii) Servicer; Servicing Tape. The Seller shall cause each Servicer and PSA Servicer
to provide to the Deal Agent and to the Custodian, via Electronic Transmission, promptly upon
request by the Deal Agent a remittance report containing servicing information, including, without
limitation, those fields reasonably requested by the Deal Agent from time to time, on a
loan–by–loan basis and in the aggregate, with respect to the Purchased Items serviced hereunder by
the Seller or any Servicer or PSA Servicer for the month (or any portion thereof) prior to the date
of the Deal Agent’s request (such remittance report, an “Asset Tape”). The Seller shall
not cause the Purchased Items to be serviced by a third party other than pursuant to the Servicing
Agreements or the Pooling and Servicing Agreements or, if not serviced thereunder, by any Servicer
other than a Servicer expressly approved in writing by the Deal Agent, which approval shall be
deemed granted by the Deal Agent with respect to each Servicer listed on Schedule 4
attached hereto, as such schedule may be amended or supplemented from time to time, after the
execution of this Agreement.

          (jj) Extension or Amendment of Purchased Assets. The Seller will not, except as
otherwise permitted in Section 6.10, extend, amend, waive or otherwise modify, or permit
any Servicer to extend, amend, waive or otherwise modify, the material terms of any Purchased Item,
provided that the foregoing shall not prohibit the Seller, a Servicer or a PSA Servicer from
permitting, prior to a default thereunder, any Borrower to exercise an extension option contained
in any Mortgage Loan Documents.

          (kk) Remittance of Prepayments. The Seller shall remit or cause to be remitted to the
Deal Agent with sufficient detail, via Electronic Transmission, to enable the Deal Agent to
appropriately identify the Purchased Item to which any amount remitted applies, all full or partial
principal prepayments (regardless of the source of repayment) on any Purchased Item that the
Seller, a Servicer or a PSA Servicer has received or that have been deposited into the Collection
Account no later than one (1) Business Days following the date such prepayment was received or
deposited.

          (ll) Custodial Agreement and Account Agreement. The Seller shall maintain each of the
Custodial Agreement and the Account Agreement in full force and effect and shall not amend or
modify either of the Custodial Agreement or the Account Agreement or waive compliance with any
provisions thereunder without the prior written consent of the Deal Agent.

          (mm) Inconsistent Agreements. Each of the Seller and the Guarantor shall not, and
shall not permit any of its Subsidiaries to, directly or indirectly, enter into any agreement
containing any provision that would be violated or breached by any Transaction hereunder or by the
performance by the Seller or the Guarantor of its obligations under any Repurchase Document.

          (nn) Escrow Imbalance. The Seller shall (to the extent it is acting as a servicer) or
shall cause the Servicer to, no later than five (5) Business Days after learning (from any source)
of any material imbalance in any escrow account, fully and completely correct and eliminate such
imbalance, including, without limitation, depositing its own funds into such account to eliminate
any overdraw or deficit, to the extent required by the applicable Servicing Agreement (in the case
of a Servicer).

          (oo) Maintenance of Property; Insurance. The Seller and the Guarantor shall keep all
Property useful and necessary in its business in good working order and condition, shall maintain
with financially sound and reputable insurance companies insurance on all its Property in at least
such amounts and against at least such risks as are usually insured against in the same general
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the same or a similar business, and furnish to the Deal Agent, upon written request, full
information as to the insurance carried.

          (pp) Interest Rate Protection Agreements. The Seller shall perform its duties and
obligations under and shall otherwise maintain any existing Interest Rate Protection Agreements.

          (qq) Payment of Obligations. Each of the Seller and the Guarantor shall pay,
discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case
may be, all its obligations of whatever nature, except where the amount or validity thereof is
currently being contested in good faith by appropriate proceedings and reserves in conformity with
GAAP with respect thereto have been provided on the books of the Seller, the Guarantor or any of
their Subsidiaries, as the case may be.

          (rr) Distributions in Respect of Purchased Assets. If the Seller shall receive any
rights, whether in addition to, in substitution of, as a conversion of, or in exchange for any
Purchased Assets, or otherwise in respect thereof, the Seller shall accept the same as the Deal
Agent’s agent, hold the same in trust for the Deal Agent as agent for the Secured Parties and
deliver the same forthwith to the Deal Agent as agent for the Secured Parties in the exact form
received, together with duly executed instruments of transfer or assignment in blank and such other
documentation as the Deal Agent shall reasonably request. If any sums of money or property are
paid or distributed in respect of the Purchased Assets and received by the Seller (other than the
Borrower Reserve Payments), the Seller shall promptly pay or deliver such money or property to the
Deal Agent as agent for the Secured Parties and, until such money or property is so paid or
delivered to the Deal Agent as agent for the Secured Parties, hold such money or property in trust
for the Deal Agent as agent for the Secured Parties, segregated from other funds of the Seller.

          (ss) Limitation on Indebtedness. The Seller (other than Arbor Realty) shall not
create, incur, assume or suffer to exist any Indebtedness of the Seller, except the Bank Repurchase
Facility and any Indebtedness of such Seller expressly permitted under this Agreement.

          (tt) Unrelated Activities. The Seller shall not engage in any activity other than
activities specifically permitted by this Section 5.1, including, but not limited to,
investment in real estate related assets and the purchasing, financing and holding of commercial
mortgage–backed securities and activities incident thereto.

          (uu) Authority Documents. The Seller (other than Arbor Realty) shall not amend its
Authority Documents without the prior written consent of the Deal Agent.

          (vv) Separateness. The Seller (other than Arbor Realty) shall (i) own no assets, and
shall not engage in any business, other than the assets and transactions specifically contemplated
by this Agreement; (ii) not incur any indebtedness or obligation, secured or unsecured, direct or
indirect, absolute or contingent (including guaranteeing any obligation), other than (A) pursuant
hereto and under the agreements and documents evidencing, securing or in any other way related to
the Purchased Assets, (B) customary representations, warranties, indemnities and other agreements
in connection with the origination, acquisition, servicing, collection, enforcement, financing,
participation, securitization, sale or other disposition of the Purchased Assets, and (C)
obligations under zoning and other governmental regulations, rules, prohibitions and ordinances and
proposed restrictions, covenants, conditions, limitations, easements, rights–of–way and other
matters existing of public record or proposed to be recorded or filed in the future governing or
affecting mortgaged real property or that may otherwise require the consent of or joinder by a
mortgagee; (iii) not make any loans or advances to any Affiliate other than loans to the Guarantor
which are disclosed in writing to and approved in writing by the Deal Agent, and shall not acquire
obligations or securities of its Affiliates; (iv) pay its debts and liabilities (including, as
applicable, shared personnel and overhead expenses) only from its own assets; (v) comply

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with the provisions of its Authority Documents; (vi) do all things necessary to observe
organizational formalities and to preserve its existence, and will not amend, modify or otherwise
change its Authority Documents; (vii) maintain all of its books, records, financial statements and
bank accounts separate from those of its Affiliates (except that such financial statements may be
consolidated to the extent consolidation is required under the GAAP consistently applied or as a
matter of Applicable Law) and file its own tax returns (except to the extent consolidation is
required or permitted under Applicable Law); (viii) be, and at all times will hold itself out to
the public as, a legal entity separate and distinct from any other entity (including any
Affiliate), shall correct any known misunderstanding regarding its status as a separate entity,
shall conduct business in its own name, and shall not identify itself or any of its Affiliates as a
division of the other; (ix) maintain adequate capital for the normal obligations reasonably
foreseeable in a business of its size and character and in light of its contemplated business
operations; (x) not engage in or suffer any change of ownership, dissolution, winding up,
liquidation, consolidation or merger in whole or in part; (xi) not commingle its funds or other
assets with those of any Affiliate or any other Person; (xii) maintain its accounts separate from
those of any Affiliate or any other Person; (xiii) shall not hold itself out to be responsible for
the debts or obligations of any other Person; (xiv) shall not, without the vote of its Independent
Director, (A) file or consent to the filing of any Insolvency Proceeding with respect to the
Seller, institute any proceedings under any applicable Insolvency Law or otherwise seek any relief
under any laws relating to the relief from debts or the protection of debtors generally with
respect to the Seller, (B) seek or consent to the appointment of a receiver, liquidator, assignee,
trustee, sequestrator, custodian or any similar official for the Seller or a substantial portion of
its properties, or (C) make any assignment for the benefit of the Seller’s creditors; (xv) shall
have at all times at least one (1) Independent Director (or such greater number as required by the
Deal Agent or the Rating Agencies); (xvi) shall maintain an arm’s length relationship with its
Affiliates; (xvii) maintain a sufficient number of employees in light of contemplated business
operations; (xviii) use separate stationary, invoices and checks; and (xvix) allocate fairly and
reasonably any overhead for shared office space.

          (ww) Pledge Agreement. Neither the Seller nor the Guarantor shall take any direct or
indirect action inconsistent with the Pledge Agreement or the security interest granted thereunder
to the Deal Agent as agent for the Secured Parties in the Equity Interests.

          (xx) Independence of Covenants. All covenants hereunder shall be given independent
effect so that if a particular action or condition is not permitted by any of such covenants, the
fact that it would be permitted by an exception to, or be otherwise within the limitations of,
another covenant shall not avoid the occurrence of a Default or Event of Default if such action is
taken or condition exists.

          (yy) ART Status. ART shall maintain its status as a real estate investment trust and
shall remain listed on a nationally recognized securities exchange in good standing.

          (zz) Prior Interests. Neither the Seller, any Guarantor nor any Affiliate of the
foregoing shall acquire any interest that is senior in priority to any Purchased Asset unless such
senior interest is also a Purchased Asset.

          (aaa) Preferred Equity Interests. The Seller shall not exercise any right of consent
or approval with respect to a Preferred Equity Interest without the written consent of the Deal
Agent. The Seller shall not permit any Equity Interest that is the subject of a Preferred Equity
Interest to consist of an interest in an entity other than a partnership or limited liability
company and, with respect to such limited partnership and limited liability company interests,
shall not permit any such interest to: (i) be dealt in or traded on a securities exchange or in a
securities market, (ii) by its terms expressly provide that it is a Security governed by Article 8
of the UCC, (iii) be or become Investment Property, (iv) be held in a securities account or (v)
constitute a Security or a Financial Asset Without waiving the foregoing covenant or a breach
thereof, to the extent any Equity Interest that is the subject of a Preferred Equity

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Interest violates any of the foregoing clauses (i) through (v), the Seller
shall execute and deliver, or cause to be executed or delivered, to the Deal Agent as agent for the
Secured Parties (or the Custodian on its behalf) such agreements, documents and instruments as the
Deal Agent may reasonably require to perfect its security interest in any such Equity Interest.
The Seller shall or shall cause the Preferred Equity Grantor to preserve and maintain its legal and
valid existence, rights, franchises, privileges and good standing in the jurisdiction of its
formation and will qualify and remain qualified in good standing in each other jurisdiction where,
due to the nature of its business or property, such qualification is necessary. The Seller shall
provide evidence to the Deal Agent on an annual basis of the Preferred Equity Grantor’s compliance
with the requirements of this subsection.

          (bbb) Equity Interests. Neither the Seller nor a Guarantor shall repurchase any
outstanding common stock or operating partnership units of the Seller or a Guarantor prior to the
later of (i) the Facility Maturity Date (as it may be extended in accordance with Section
2.4) and (ii) the indefeasible payment in full of the Aggregate Unpaids.

          (ccc) Seller Subsidiaries. Prior to the later of (i) the Facility Maturity Date (as
it may be extended in accordance with Section 2.4) and (ii) the indefeasible payment in
full of the Aggregate Unpaids, the Seller (other than Arbor Realty) shall not create, form or
permit to exist any Subsidiary (other than a special purpose entity Subsidiary created to acquire
and transfer Preferred Equity Interest to the Deal Agent as a Co–seller under the Agreement;
provided such co–seller executes a Joinder Agreement.

          (ddd) Termination of Securities Account. Upon the Seller’s receipt of notice from any
securities intermediary (as defined in the UCC) of its intent to terminate any securities account
(as defined in the UCC) of the Seller held by such securities intermediary and relating to a
Purchased Asset or collateral for a Purchased Asset, prior to the termination of such securities
account the collateral in such account (i) shall be transferred to a new securities account, upon
the request of the Deal Agent, which shall be subject to an executed control agreement as provided
in Subsection 2.2(m) of this Agreement or (ii) transferred to an account held by the Deal
Agent as agent for the Secured Parties in which such collateral will be held until a new securities
account is established with an executed control agreement acceptable to the Purchaser in its
discretion.

ARTICLE VI

ADMINISTRATION AND SERVICING

          Section 6.1 Servicing.

          (a) Appointment. The Purchaser hereby appoints the Seller as its agent to service the
Purchased Items and enforce its rights in and under such Purchased Items. The Seller hereby
accepts such appointment and agrees to perform the duties and obligations with respect thereto as
set forth herein.

          (b) The Seller covenants to maintain or cause the servicing of the Purchased Items to be
maintained in conformity with Accepted Servicing Practices and in a manner at least equal in
quality to the servicing Seller provides for Mortgage Assets that it owns. In the event that the
preceding language is interpreted as constituting one or more servicing contracts, each such
servicing contract shall terminate automatically upon the earliest of (i) an Event of Default, (ii)
the date on which this Agreement terminates, or (iii) the transfer of servicing approved in writing
by the Deal Agent.

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          Section 6.2 Seller as Servicer.

          If the Purchased Items are serviced by the Seller, the Seller agrees that, until the
repurchase of a Purchased Item on a Repurchase Date, the Purchaser or its designee is the owner of
all servicing records for the period that the Purchaser or its designee owns the Purchased Items,
including, but not limited to, any and all servicing agreements, files, documents, records, data
bases, computer tapes, copies of computer tapes, computer programs, proof of insurance coverage,
insurance policies, appraisals, other closing documentation, payment history records, and any other
records relating to or evidencing the servicing of such Purchased Items (the “Servicing
Records”). The Seller covenants to safeguard such Servicing Records and to deliver them
promptly to Deal Agent or its designee (including the Custodian) at the Deal Agent’s request.

          Section 6.3 Third Party Servicer.

          If the Purchased Items are serviced by a Servicer or a PSA Servicer pursuant to a Servicing
Agreement or Pooling and Servicing Agreement, as applicable, the Seller (i) shall, in accordance
with Subsection 3.2(h), provide a copy of each Servicing Agreement and Pooling and
Servicing Agreement to the Deal Agent, which shall be in form and substance acceptable to the Deal
Agent, and, in connection with each Servicing Agreement, shall provide a Servicer Redirection
Notice to the Deal Agent substantially in the form of Exhibit VIII hereto, fully executed
by the Seller and the Servicer; and (ii) hereby irrevocably assigns to the Deal Agent as agent for
the Secured Parties all right, title and interest of the Seller in, to and under, and the benefits
of, each Servicing Agreement and each Pooling and Servicing Agreement with respect to the Purchased
Items. Notwithstanding the fact that the Seller has contracted with the Servicers to service the
Purchased Items, the Seller shall remain liable to the Deal Agent, the Purchaser and the other
Secured Parties for the acts of the Servicers and for the performance of the duties and obligations
set forth herein. The Seller agrees that no Person shall assume the servicing obligations with
respect to the Purchased Items as successor to a Servicer unless such successor is approved in
writing by the Deal Agent (which approval shall not be unreasonably withheld or delayed) prior to
such assumption of servicing obligations.

          Section 6.4 Duties of the Seller.

          (a) Duties. The Seller shall take or cause to be taken all such actions as may be
necessary or advisable to collect the Purchased Items from time to time, all in accordance with
Applicable Laws, with reasonable care and diligence, and in accordance with the standard set forth
in Subsection 6.1(b). Without limiting the foregoing, the duties of the Seller shall
include the following:

     (i) preparing and submitting claims to, and post–billing liaison with, Borrowers on
each Purchased Item;

     (ii) maintaining all necessary servicing records with respect to the Purchased Items
and providing such reports to the Deal Agent in respect of the servicing of the Purchased
Items (including information relating to its performance under this Agreement) as may be
required hereunder or as the Deal Agent may reasonably request;

     (iii) maintaining and implementing administrative and operating procedures (including,
without limitation, an ability to recreate Servicing Records evidencing the Purchased Items
in the event of the destruction of the originals thereof) and keeping and maintaining all
documents, books, records and other information reasonably necessary or advisable for the
collection of the Purchased Items;

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     (iv) promptly delivering to the Deal Agent or the Custodian, from time to time, such
information and servicing records (including information relating to its performance under
this Agreement) as the Deal Agent or the Custodian may from time to time reasonably request;

     (v) identifying each Purchased Item clearly and unambiguously in its Servicing Records
to reflect that such Purchased Item is owned by the Purchaser or its designee pursuant to
this Agreement;

     (vi) notifying the Deal Agent of any material action, suit, proceeding, dispute,
offset, deduction, defense or counterclaim of which it has knowledge or has received notice
(A) that is or is threatened to be asserted by a Borrower with respect to any Purchased Item
(or portion thereof); or (B) that is reasonably expected to have a Material Adverse Effect;

     (vii) notifying the Deal Agent of any proposed changes in its collection policies that
could have an adverse effect on the collectibility of the Purchased Items, on the Seller or
on the interests of the Deal Agent, the Purchaser or any Secured Party;

     (viii) maintaining the perfected security interest of the Deal Agent as agent for the
Secured Parties in the Purchased Items;

     (ix) maintaining, in substantially the same manner as the Custodian holds the Mortgaged
Loan Documents, all Servicing Records and Servicing Files relating to each Purchased Item;
and

     (x) remitting and causing all Servicers and the PSA Servicers under Servicing
Agreements and the Pooling and Servicing Agreements, if applicable, to remit all Income to
the Collection Account as required by Subsection 5.1(f).

          (b) Deal Agent’s Rights. Notwithstanding anything to the contrary contained herein,
the exercise by the Deal Agent as agent for the Secured Parties of its rights hereunder shall not
release the Seller from any of its duties or responsibilities with respect to the Purchased Items.
The Deal Agent as agent for the Secured Parties shall not have any obligation or liability with
respect to any Purchased Items, nor shall any of them be obligated to perform any of the
obligations of the Seller hereunder.

          (c) Servicing Programs. In the event that the Seller or the Servicers use any
software program in servicing the Purchased Items that are licensed from a third party, the Seller
shall use its best reasonable efforts to obtain, either before the Closing Date or as soon as
possible thereafter, whatever licenses or approvals are necessary to allow the Deal Agent as agent
for the Secured Parties to use such programs.

          Section 6.5 Authorization of the Seller.

          (a) The Purchaser hereby authorizes the Seller (including any successor thereto) to take any
and all reasonable steps in its name and on its behalf necessary or desirable and not inconsistent
with the sale of the Purchased Items to the Purchaser or its designee, in the determination of the
Seller, to collect all amounts due under any and all Purchased Items, including, without
limitation, endorsing any of their names on checks and other instruments representing Income,
executing and delivering any and all instruments of satisfaction or cancellation, or of partial or
full release or discharge, and all other comparable instruments, with respect to the Purchased
Items and, after the delinquency of any Purchased Item and to the extent permitted under and in
compliance with Applicable Law, to commence proceedings with respect to enforcing payment thereof,
to the same extent as the Seller could have done if it had

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continued to own such Purchased Items. The Deal Agent as agent for the Secured Parties shall
furnish the Seller (and any successors thereto) with any powers of attorney and other documents
necessary or appropriate to enable the Seller to carry out its servicing and administrative duties
hereunder and shall cooperate with the Seller to the fullest extent in order to ensure the
collectibility of the Purchased Items. In no event shall the Seller be entitled to make the Deal
Agent, the Purchaser or any Secured Party a party to any litigation without such Person’s express
prior written consent.

          (b) The Seller shall take such action as the Deal Agent as agent for the Secured Parties may
deem necessary or advisable to enforce collection of the Purchased Items; provided,
however, subject to all other rights of the Deal Agent as agent for the Secured Parties
contained herein, that the Deal Agent may, at any time that an Event of Default or Default has
occurred and is continuing, notify any Borrower with respect to any Purchased Items of the
assignment of such Purchased Items to the Purchaser or its designee and direct that payments of all
amounts due or to become due be made directly to the Deal Agent as agent for the Secured Parties or
any servicer, collection agent or lock–box or other account designated by the Deal Agent and, upon
such notification and at the expense of the Seller, the Deal Agent as agent for the Secured Parties
may enforce collection of any such Purchased Items and adjust, settle or compromise the amount or
payment thereof.

          Section 6.6 Collection of Payments.

          (a) Collection Efforts, Modification of Purchased Items. The Seller will, consistent
with the standard set forth in Subsection 6.1(b), collect all payments called for under the
terms and provisions of the Purchased Items and when the same become due and shall follow those
collection procedures that it follows with respect to all comparable Purchased Items that it
services for itself or others.

          (b) Acceleration. To the extent consistent with the standard set forth in
Subsection 6.1(b), the Seller shall accelerate the maturity of all or any scheduled
payments and other amounts due under any Purchased Asset in which a default under the terms thereof
has occurred and is continuing (after the lapse of any applicable grace period) promptly after such
Purchased Item becomes a Defaulted Mortgage Asset.

          (c) Taxes and Other Amounts. To the extent provided for in any Purchased Item, the
Seller shall, consistent with the standard set forth in Subsection 6.1(b), collect all
payments with respect to amounts due for taxes, assessments and insurance premiums relating to such
Purchased Item and remit such amounts to the appropriate Governmental Authority or insurer on or
prior to the date such payments are due.

          Section 6.7 Realization Upon Defaulted Purchased Items.

          The Seller shall, to the extent consistent with the standard set forth in Subsection
6.1(b), use reasonable efforts to repossess or otherwise comparably convert the ownership of
any Underlying Mortgaged Property relating to a Defaulted Mortgage Asset and will act as sales and
processing agent for such Underlying Mortgaged Property that it repossesses. Consistent with
Subsection 6.1(b), the Seller shall follow such other practices and procedures that it
deems necessary or advisable and as are customary and usual in its servicing of contracts and other
actions by the Seller in order to realize upon such Underlying Mortgaged Property, which practices
and procedures may include reasonable efforts to enforce all obligations of Borrowers and
repossessing and selling such Underlying Mortgaged Property at public or private sale in
circumstances other than those described in the preceding sentence. In any case in which any such
Underlying Mortgaged Property has suffered damage, the Seller shall not, unless required by the
applicable Mortgage Loan Documents, expend funds in connection with any repair or toward the
repossession of such Underlying Mortgaged Property unless it reasonably determines that such repair
and/or repossession shall increase the recoveries by an amount greater than the amount of such

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expenses. With respect to the Preferred Equity Interests, to the extent consistent with
Subsection 6.1(b), the Seller shall use reasonable efforts to exercise the remedies
provided for under Mortgage Loan Documents for each Preferred Equity Interest that is a Defaulted
Mortgage Asset. The Seller shall remit to the Collection Account the recoveries received in
connection with the sale or disposition of Underlying Mortgaged Property or other exercise of
remedies relating to a Defaulted Mortgage Asset. The Seller shall consult with the Deal Agent
prior to taking any action under this Section 6.7 and shall take only those actions as the
Purchaser may approve in writing in its sole discretion,

          Section 6.8 Maintenance of Insurance Policies.

          The Seller shall consistent with the standard set forth in Subsection 6.1(b) ensure
that each Borrower maintains an insurance policy with respect to any Underlying Mortgaged Property
in an amount at least equal to the sum of the Purchase Price of the related Purchased Item and
shall ensure that each such insurance policy names the Deal Agent as agent for the Secured Parties
as loss payee and as an insured thereunder and that all of the Seller’s right, title and interest
therein is fully assigned to the Deal Agent as agent for the Secured Parties. Additionally, the
Seller shall require that each Borrower maintain property damage liability insurance during the
term of each Purchased Item in amounts and against risks customarily insured against by the
Borrower on property owned by it. If a Borrower fails to maintain property damage insurance, the
Seller may, in its discretion, purchase and maintain such insurance on behalf of, and at the
expense of, the Borrower. In connection with its activities as the Seller, the Seller agrees to
present, on behalf of the Deal Agent as agent for the Secured Parties, claims to the insurer under
each insurance policy and any such liability policy, and to settle, adjust and compromise such
claims, in each case, consistent with the terms of each Purchased Item. The Seller’s insurance
policies with respect to the Underlying Mortgaged Property shall insure against liability for
physical damage relating to such property in accordance with the requirements of Subsection
6.1(b). Until the Purchased Items are repurchased by the Seller, the Seller hereby disclaims
any and all right, title and interest in and to any insurance policy and insurance proceeds with
respect to any Underlying Mortgaged Property, including any insurance policy with respect to which
it is named as loss payee and as an insured, and agrees that it has no equitable, beneficial or
other interest in the insurance polices and insurance proceeds other than being named as loss payee
and as an insured. The Seller acknowledges that, with respect to the insurance policies and
insurance proceeds thereof, it is acting solely in the capacity as agent for the Deal Agent, the
Purchaser and the other Secured Parties.

          Section 6.9 Event of Default.

          If the servicer of the Purchased Items is the Seller, upon the occurrence of an Event of
Default, the Deal Agent as agent for the Secured Parties shall have the right to terminate the
Seller as the servicer of the Purchased Items and transfer servicing to its designee, at no cost or
expense to the Deal Agent, at any time thereafter. If the servicer of the Purchased Items is not
the Seller, the Deal Agent as agent for the Secured Parties shall have the right, as contemplated
in the applicable Servicer Redirection Notice, upon the occurrence of an Event of Default, to
terminate any applicable Servicing Agreement and transfer servicing to its designee, at no cost or
expense to the Deal Agent, it being agreed that the Seller will pay any and all fees required to
terminate such Servicing Agreement and to effectuate the transfer of servicing to the designee of
the Deal Agent. The Seller shall fully cooperate and shall cause all Servicers to fully cooperate
with the Deal Agent in transferring the servicing of the Purchased Items to the Deal Agent’s
designee.

          Section 6.10 Modification.

          Unless otherwise agreed to by the Deal Agent in its reasonable discretion until the repurchase
of any Purchased Item, the Seller and the Servicers shall have no right to waive, amend, modify or
alter the

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material terms of such Purchased Item and the Seller shall have no obligation or right to
repossess such Purchased Item or substitute another Purchased Item, in each case except as provided
in the Custodial Agreement.

          Section 6.11 Inspection.

          In the event the Seller or its Affiliate is servicing the Purchased Items, the Seller shall
permit the Deal Agent to inspect the Seller’s or its Affiliate’s servicing facilities, as the case
may be, for the purpose of satisfying the Deal Agent that that Seller or its Affiliate, as the case
may be, has the ability to service the Purchased Items as provided in this Agreement.

          Section 6.12 Servicing Compensation.

          As compensation for its servicing activities hereunder and reimbursement for its expenses, the
Seller shall be entitled to receive a servicing fee to the extent of funds available therefor in
the amount of 25 basis points per annum to be paid monthly (the “Servicing Fee”).

          Section 6.13 Payment of Certain Expenses by Servicer.

          The Seller and any Servicer will be required to pay all expenses incurred by them in
connection with their activities under this Agreement, including fees and disbursements of
independent accountants, Taxes imposed on the Seller or the Servicers, expenses incurred in
connection with payments and reports pursuant to this Agreement, and all other fees and expenses
not expressly stated under this Agreement for the account of the Seller. The Seller shall be
required to pay all reasonable fees and expenses owing to any bank or trust company in connection
with the maintenance of the Collection Account and the Operating Account. The Seller shall be
required to pay such expenses for its own account and shall not be entitled to any payment therefor
other than the Servicing Fee.

          Section 6.14 Pooling and Servicing Agreements.

          Notwithstanding the provisions of this Article VI, to the extent the Purchased Items
are serviced by a PSA Servicer (other than the Seller or any Servicer) under a Pooling and
Servicing Agreement, (a) the standards for servicing those Purchased Items shall be those set forth
in the applicable Pooling and Servicing Agreement, (b) the Seller shall enforce its rights and
interests under such agreements for and on behalf of the Deal Agent as agent for the Secured
Parties, (c) the Seller shall instruct the applicable PSA Servicer to deposit all Income received
in respect of the Purchased Items into the Collection Account within one (1) Business Day of the
date the PSA Servicer is obligated to make payments under the applicable Pooling and Servicing
Agreement, (d) prior to an Event of Default, the Seller shall not take any action or fail to take
any action or consent to any action or inaction under any Pooling and Servicing Agreement where the
effect of such action or inaction would prejudice the interests of the Deal Agent as agent for the
Secured Parties, (e) the Seller will not consent to any change or modification to any payment
dates, interests rates, fees, payments of principal or interest, maturity dates, restrictions on
Indebtedness or any monetary term or release any Borrowers, guarantors or collateral without the
written consent of the Deal Agent, and, (f) following an Event of Default, the Deal Agent as agent
for the Secured Parties shall be entitled to exercise any and all rights of the Seller under such
Pooling and Servicing Agreements as such rights relate to the Purchased Items.

          Section 6.15 Servicer Default.

          Any material breach by the Seller, any of its Servicers or the PSA Servicer of the obligations
contained in this Article VI or in Subsections 2.9(f) and 5.1(ii) shall
constitute a “Servicer Default”.

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ARTICLE VII

[RESERVED]

ARTICLE VIII

SECURITY INTEREST

          Section 8.1 Security Interest.

          (a) Each of the following items or types of property, whether now owned or hereafter acquired,
now existing or hereafter created and wherever located, is hereinafter collectively referred to as
the Purchased Items (the “Purchased Items”): (A) all Purchased Assets and all rights and
security interests (but not the obligations) thereunder; (B) all Income and Cash Collateral, if
any; (C) all Mortgage Loan Documents; (D) all Mortgage Asset Files, including, without limitation,
all promissory notes, all Security Agreements relating to the Purchased Items and any other
collateral pledged or otherwise, notes, certificates, instruments, negotiable documents, chattel
mortgages and all other loan, security or other documents relating to such Purchased Items,
together with all files, documents, instruments, surveys, certificates, correspondence, appraisals,
licenses, contracts, computer programs, computer storage media, accounting records and other books
and records relating thereto; (E) all collateral, security interests, rights and other interests
under or with respect to each Purchased Item; (F) all Purchase Agreements and the collateral,
security interests, rights and other interests thereunder; (G) all mortgage guaranties and
insurance (issued by governmental agencies or otherwise) and any mortgage insurance certificate,
policy or other document evidencing such mortgage guaranties or insurance relating to any Purchased
Items and all claims, payments and proceeds thereunder; (H) all servicing fees to which such Seller
is entitled and servicing and other rights relating to the Purchased Items; (I) all Servicing
Agreements, Servicing Records, Servicing Files with respect to the Purchased Items and the rights
and interests of the Seller thereunder or with respect thereto; (J) all Servicer Accounts
established pursuant to any Servicing Agreement, Pooling and Servicing Agreement or otherwise with
respect to the Purchase Items and all amounts on deposit therein, from time to time, related to the
Purchased Items; (K) all rights of the Seller under any Pooling and Servicing Agreements relating
to the Purchased Items and all rights of the Seller thereunder or with respect thereto; (L) all
other agreements, instruments or contracts relating to, constituting, or otherwise governing, any
or all of the foregoing to the extent they relate to the Purchased Items, including the right to
receive principal and interest payments and any related fees, breakage fees, late fees and
penalties with respect to the Purchased Items and the right to enforce such payments; (M) insurance
policies, certificates of insurance, insurance proceeds, and the rights to any insurance proceeds,
in each case to the extent they relate to the Purchased Items; (N) the Collection Account and the
Homewood Interest Reserve and all monies, cash, deposits, securities or investment property from
time to time on deposit in the Collection Account and the Homewood Interest Reserve; (O) any
collection account, escrow account, reserve account, collateral account or lock–box account related
to the Purchased Items to the extent of any Seller’s or the holder’s interest therein, including
all moneys, cash, deposits, securities or investment property from time to time on deposit therein;
(P) rights of the Seller under any letter of credit, guarantee or other credit support or
enhancement related to the Purchased Items; (Q) any Interest Rate Protection Agreements relating to
the Purchased Items, including all payments due to the Seller, the Guarantor or any Affiliates of
the foregoing thereunder; (R) all purchase or take–out commitments relating to or constituting any
of the foregoing; (S) all collateral, however defined, under any of the agreements between a
Borrower or an Affiliate on the one hand and the Seller on the other hand; (T) all “general
intangibles”, “accounts”, “chattel paper”, “deposit accounts”, “securities accounts”,

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“instruments”, “securities”, “financial assets”, “uncertified securities”, “securities
entitlements” and “investment property” as defined in the Uniform Commercial Code as in effect from
time to time relating to or constituting any and all of the foregoing; and (U) any and all
replacements, substitutions, conversions, distributions on or proceeds of, from or on any and all
of the foregoing; provided, however, none of the foregoing Purchased Items shall
include any obligations; provided, further, however, notwithstanding the
foregoing, (i) no account, instrument, chattel paper or other obligation or Property of any kind
due from, owed by, or belonging to, a Person described in the definition of Prohibited Person or
(ii) any lease in which the lessee is a Person described in the definition of Prohibited Person,
shall be collateral under the Repurchase Documents.

(b) The Purchaser and the Seller intend that the Transactions hereunder be sales to the Purchaser
or its designee of the Purchased Items and not loans from the Purchaser to the Seller secured by
the Purchased Items. However, in order to preserve the Purchaser’s rights under this Agreement in
the event that a court or other forum recharacterizes the Transactions hereunder as loans and as
security for (A) the repayment of the Aggregate Unpaids and performance by the Seller of all of the
Seller’s obligations to the Deal Agent as agent for the Secured Parties hereunder and under the
Repurchase Documents and the Transactions entered into hereunder (collectively, the “Repurchase
Obligations”), (B) the Seller–Related Obligations and (C) all expenses and charges, legal or
otherwise, incurred in collecting or enforcing, realizing on or protecting any security for, the
Repurchase Obligations and/or the Seller–Related Obligations (the amounts described in the
foregoing clauses A–C are collectively referred to as the “Obligations”), (a) the Seller
hereby assigns, pledges and grants a security interest in all of its right, title and interest in,
to and under the Purchased Items to the Deal Agent as agent for the Secured Parties to secure the
Obligations, (b) it is the express intent of the parties that conveyance of the Purchased Items be
deemed a pledge of the Purchased Items by the Seller to the Deal Agent as agent for the Secured
Parties to secure a debt or other obligation of the Seller, and (c) (i) this Agreement shall also
be deemed to be a security agreement within the meaning of Article 9 of the UCC of the applicable
jurisdiction; (ii) the conveyance provided for herein shall be deemed to be a grant by the Seller
to the Deal Agent as agent for the Secured Parties of a security interest in all of the Seller’s
right, title and interest in and to the Purchased Items; (iii) the assignment by the Deal Agent as
agent for the Secured Parties of the interest of the Deal Agent as agent for the Secured Parties as
contemplated herein shall be deemed to be an assignment of any security interest created hereunder;
(iv) the possession by the Deal Agent as agent of the Secured Parties or any of its agents,
including, without limitation, the Custodian, of the Mortgage Loan Documents, the Purchased Items
and such other items of Property as constitute instruments, money, negotiable documents or chattel
paper shall be deemed to be possession by the secured party for purposes of perfecting the security
interest pursuant to the UCC; and (v) notifications to Persons other than the Deal Agent as agent
for the Secured Parties holding such Property, and acknowledgments, receipts or confirmations from
Persons other than the Deal Agent as agent for the Secured Parties holding such Property, shall be
deemed notifications to, or acknowledgments, receipts or confirmations from, financial
intermediaries, bailees or agents (as applicable) of the secured party for the purpose of
perfecting such security interest under the UCC and Applicable Law. The assignment, pledge and
grant of security interest contained herein shall be, and the Seller hereby represents and warrants
to the Deal Agent, the Purchaser and the Secured Parties that it is, a first priority perfected
security interest. The Seller agrees to mark its computer records and tapes to evidence the
interests granted to the Deal Agent as agent of the Secured Parties hereunder. All Purchased Items
shall secure the payment of all Obligations now or hereafter existing, including, without
limitation, the Seller’s obligation to repurchase Purchased Assets, or if such obligation is so
recharacterized as a loan, to repay such loan for the Repurchase Price and to pay the Aggregate
Unpaids, the Seller–Related Obligations and any and all other Obligations. For the avoidance of
doubt and not by way of limitation of the foregoing, (A) each Purchased Item, including all Income
related thereto, secures the obligations of each Seller with respect to all other Transactions and
the obligations with respect to all other Purchased Items, including those Purchased Assets that
are junior in priority to the Purchased Asset in question, (B) an Event of Default by any Seller is
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Sellers and the Deal Agent, the Purchaser and/or any other Secured Party may pursue its remedies in
connection therewith against any of the Purchased Items and/or against the assets and Properties of
any or all Sellers, and (C) if an Event of Default has occurred and is continuing, no Purchased
Item will be released from the Deal Agent’s Lien or transferred to the Seller except (x) if the
underlying Borrower has repaid all amounts due under the related Mortgage Loan Documents, or (y) if
the Obligations are indefeasibly paid in full. Notwithstanding the foregoing, the Obligations
shall be full recourse to the Seller. Notwithstanding anything contained herein to the contrary,
during the time that VFCC is a Purchaser hereunder, VFCC shall not share payments with or receive
the benefit of any payments from any other Indebtedness under the Seller–Related Obligations (other
than the Indebtedness under the Repurchase Documents). The preceding sentence is for the benefit
of VFCC only and may not be invoked or enforced by any other Person.

          (c) Pursuant to the Custodial Agreement, the Custodian shall hold the Mortgage Asset Files as
exclusive bailee pursuant to the terms of the Custodial Agreement and shall deliver the Trust
Receipts (along with completed Mortgage Asset File Checklists attached thereto) to the Deal Agent
(with a copy to the Seller), each such Trust Receipt to reflect that the Custodian has reviewed
such Mortgage Asset Files in the manner and to the extent required by the Custodial Agreement and
identifying any deficiencies in such Mortgage Asset Files as so reviewed.

          (d) The assignment under this Section 8.1 does not constitute and is not intended to
result in the creation or an assumption by the Deal Agent, the Purchaser or any Secured Party of
any obligation of the Seller or any other Person in connection with any or all of the Purchased
Items or under any agreement or instrument relating thereto. Anything herein to the contrary
notwithstanding, (i) the Seller shall remain liable under the Purchased Items to the extent set
forth therein to perform all of their duties and obligations thereunder to the same extent as if
the Repurchase Documents had not been executed, (ii) the exercise by the Deal Agent as agent for
the Secured Parties of any of its rights under, in or to the Purchased Items shall not release the
Seller from any of its duties or obligations under the Purchased Items, and (iii) the Deal Agent,
the Purchaser and the other Secured Parties shall not have any obligations or liability under the
Purchased Items by reason of the Repurchase Documents or otherwise, nor shall the Deal Agent, the
Purchaser or other Secured Parties be obligated to perform any of the obligations or duties of the
Seller or any other Person thereunder or to take any action to collect or enforce any claim for
payment assigned hereunder.

          Section 8.2 Release of Lien on Purchased Assets.

          Except as otherwise provided in a Repurchase Document, at such time as any Purchased Asset is
repurchased in accordance with this Agreement, and the Repurchase Price and all other amounts due
with respect thereto have been paid in full, the Deal Agent as agent for the Secured Parties will,
to the extent requested by the Seller, release its interest in such Purchased Asset and any related
Purchased Items; provided, that, the Agent as agent for the Secured Parties will
make no representation or warranty, express or implied, with respect to any such Purchased Asset or
Purchased Items in connection with such release, except that the Deal Agent as agent for the
Secured Parties shall represent and warrant that it has not assigned, conveyed, pledged or
otherwise transferred such Purchased Asset or Purchased Items to any other Person.

          Section 8.3 Further Assurances.

          The provisions of Section 13.12 shall apply to the security interest granted under
Section 8.1 as well as to the Transactions hereunder.

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          Section 8.4 Remedies.

          Upon the occurrence of an Event of Default, the Deal Agent as agent for the Secured Parties
shall have, with respect to the security interest in the Purchased Items granted pursuant to
Section 8.1, and in addition to all other rights and remedies available to the Deal Agent,
the Purchaser and the other Secured Parties under this Agreement, the Repurchase Documents and
other Applicable Law, all rights and remedies of a secured party upon default under the UCC.

          Section 8.5 Waiver of Certain Laws.

          The Seller agrees, to the full extent that it may lawfully so agree, that neither it nor
anyone claiming through or under it will set up, claim or seek to take advantage of any
appraisement, valuation, stay, extension or redemption law now or hereafter in force in any
locality where any Purchased Items may be situated in order to prevent, hinder or delay the
enforcement or foreclosure of this Agreement, or the absolute sale of any of the Purchased Items or
any part thereof, or the final and absolute putting into possession thereof, immediately after such
sale, of the purchasers thereof, and each of the Seller, for itself and all who may at any time
claim through or under it, hereby waives, to the full extent that it may be lawful so to do, the
benefit of all such laws and any and all right to have any of the properties or assets constituting
the Purchased Items marshaled upon any such sale, and agrees that the Deal Agent as agent for the
Secured Parties or any court having jurisdiction to foreclose the security interests granted in
this Agreement may sell the Purchased Items as an entirety or in such parcels as the Deal Agent as
agent for the Secured Parties or such court may determine.

          Section 8.6 Purchaser’s Duty of Care.

          Except as provided in the Repurchase Documents, the Deal Agent’s (or, on its behalf, the
Custodian’s) sole duty with respect to the Purchased Items, the Pledged Collateral and any other
collateral for the Facility shall be to use reasonable care in the custody, use, operation and
preservation of the Purchased Items, the Pledged Collateral and any other collateral for the
Facility in its possession or control. Neither the Deal Agent, the Purchaser nor the Secured
Parties shall incur any liability to the Seller, the Guarantor, the Pledgor or any other Person for
any act of government, act of God or other such destruction in whole or in part or negligence or
wrongful act of custodians or agents selected by and supervised by the Deal Agent with reasonable
care, or the Deal Agent’s failure to provide adequate protection or insurance for the Purchased
Items, the Pledged Collateral and the other collateral for the Facility. Neither the Deal Agent,
the Purchaser nor the Secured Parties shall have any obligation to take any action to preserve any
rights of the Seller, the Guarantor and the Pledgor in any of the Purchased Items, the Pledged
Collateral and the other collateral for the Facility against prior parties, and the Seller hereby
agrees to take such action. The Seller, the Guarantor and the Pledgor shall defend the Purchased
Items, the Pledged Collateral and the other collateral for the Facility against all such claims and
demands of all Persons (other than claims and demands resulting from interests created by the Deal
Agent as agent for the Secured Parties or the Purchaser), at all times, as are adverse to the Deal
Agent as agent for the Secured Parties and the Purchaser. Neither the Deal Agent, the Purchaser
nor the Secured Parties shall have any obligation to realize upon any Purchased Item, the Pledged
Collateral or the other collateral for the Facility, except through proper application of any
distributions with respect to the Purchased Items, the Pledged Collateral and the other collateral
for the Facility made directly to the Deal Agent as agent for the Secured Parties or its agent(s).
So long as the Deal Agent as agent for the Secured Parties (or the Custodian, on the Deal Agent’s
behalf) shall act in good faith in its handling of the Purchased Items, the Pledged Collateral and
the other collateral for the Facility, each of the Seller, the Guarantor and the Pledgor waives or
is deemed to have waived the defense of impairment of the Purchased Items, the Pledged Collateral
and the other collateral for the Facility by the Deal Agent as agent for the Secured Parties, the
Purchaser and the Custodian.

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ARTICLE IX

POWER OF ATTORNEY

          Section 9.1 Purchaser’s Appointment as Attorney–in–Fact.

          (a) Following the occurrence and during the continuance of an Event of Default, the Seller
hereby irrevocably constitutes and appoints the Deal Agent as agent for the Secured Parties and any
officer or agent thereof, with full power of substitution, as its true and lawful attorney–in–fact
with full irrevocable power and authority in the place and stead of the Seller and in the name of
the Seller or in its own name, from time to time in the Deal Agent’s discretion, for the purpose of
carrying out the terms of this Agreement, to take any and all appropriate action and to execute any
and all documents and instruments that may be reasonably necessary or desirable to accomplish the
purposes of this Agreement, and, without limiting the generality of the foregoing, the Seller
hereby gives the Deal Agent as agent for the Secured Parties the power and right, on behalf of the
Seller, without assent by, but with notice to, the Seller, to do the following (in each case to the
extent the Seller is not prohibited by Applicable Law or any applicable Contractual Obligation):

     (i) in the name of the Seller, or in its own name, or otherwise, to take possession of
and endorse and collect any checks, drafts, notes, acceptances or other instruments for the
payment of moneys due under any mortgage insurance or with respect to any other Purchased
Items and to file any claim or to take any other action or proceeding in any court of law or
equity or otherwise deemed appropriate by the Deal Agent for the purpose of collecting any
and all such moneys due under any such mortgage insurance or with respect to any other
Purchased Items whenever payable;

     (ii) to pay or discharge taxes and Liens levied or placed on or threatened against the
Purchased Items;

     (iii) (A) to direct any party liable for any payment under any Purchased Items to make
payment of any and all moneys due or to become due thereunder directly to the Deal Agent as
agent for the Secured Parties or as the Deal Agent shall direct; (B) to ask or demand for,
collect, receive payment of and receipt for, any and all moneys, claims and other amounts
due or to become due at any time in respect of or arising out of any Purchased Items; (C) to
sign and endorse any invoices, assignments, verifications, notices and other documents in
connection with any Purchased Items; (D) to commence and prosecute any suits, actions or
proceedings at law or in equity in any court of competent jurisdiction to collect the
Purchased Items or any proceeds thereof and to enforce any other right in respect of any
Purchased Items; (E) to defend any suit, action or proceeding brought against the Seller
with respect to any Purchased Items; (F) to settle, compromise or adjust any suit, action or
proceeding described in clause (E) above and, in connection therewith, to give such
discharges or releases as the Deal Agent may deem appropriate, provided that same does not
impose any civil or criminal liability on the Seller or the Guarantor; and (G) generally, to
sell, transfer, pledge, exercise rights and make any agreement with respect to or otherwise
deal with any Purchased Items as fully and completely as though the Deal Agent as agent for
the Secured Parties were the absolute owner thereof for all purposes, and to do, at the Deal
Agent’s option and the Seller’s expense, at any time, and from time to time, all acts and
things that the Deal Agent deems necessary to protect, preserve or realize upon the
Purchased Items and the Deal Agent’s Liens thereon and to effect the intent of this
Agreement, all as fully and effectively as such Seller might do;

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     (iv) to direct the actions of the Custodian with respect to the Purchased Items under
the Custodial Agreement; and

     (v) to execute, from time to time, in connection with any sale provided for in
Section 10.2, any endorsements, assignments or other instruments of conveyance or
transfer with respect to the Purchased Items.

          The Seller hereby ratifies all that said attorneys shall lawfully do or cause to be done by
virtue hereof. This power of attorney is a power coupled with an interest and shall be
irrevocable.

          (b) The powers conferred on the Deal Agent hereunder are solely to protect the Deal Agent’s,
the Purchaser’s and the other Secured Parties’ interests in the Purchased Items and shall not
impose any duty upon it to exercise any such powers. The Deal Agent shall be accountable only for
amounts that it actually receives as a result of the exercise of such powers, and neither the Deal
Agent nor any of its officers, directors, employees or agents shall be responsible to the Seller
for any act or failure to act hereunder.

ARTICLE X

EVENTS OF DEFAULT

          Section 10.1 Events of Default.

          The following events shall be Events of Default (“Events of Default”) hereunder:

          (a) the aggregate Repurchase Price for all Transactions outstanding on any day exceeds the
Maximum Amount and the same continues unremedied for two (2) Business Days after notice from the
Deal Agent; provided, however, during the period of time that such event remains
unremedied, no additional Transaction will be made under this Agreement; or

          (b) a Servicer Default occurs and is continuing; or

          (c) the Facility Maturity Date shall have occurred and the Obligations have not been repaid by
such date; or

          (d) an Insolvency Event relating to the Seller, the Guarantor, the Pledgor or any Affiliate of
the Seller, the Guarantor or the Pledgor shall have occurred; or

          (e) the Seller or the Guarantor shall become required to register as an “investment company”
within the meaning of the Investment Company Act of 1940, as amended (the “40 Act”) or the
arrangements contemplated by the Repurchase Documents shall require registration as an “investment
company” within the meaning of the 40 Act; or

          (f) a regulatory, tax or accounting body has ordered that the activities of the Seller or the
Guarantor contemplated in the Repurchase Documents be terminated or, as a result of any other event
or circumstance, the activities of the Seller or the Guarantor contemplated in the Repurchase
Documents may reasonably be expected to cause the Seller or the Guarantor to suffer materially
adverse regulatory, accounting or tax consequences; or

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          (g) there shall exist any event or occurrence that has caused a Material Adverse Effect; or

          (h) (i) the Internal Revenue Service shall file notice of a Lien pursuant to Section 6323 of
the Code with regard to any assets of the Seller, the Guarantor or the Pledgor, and such Lien shall
not have been released within five (5) Business Days; or

          (i) any material adverse change in the credit quality of the Seller or the Guarantor shall
occur; or

          (j) a default or event of default occurs under the Bank Repurchase Facility or the Working
Capital Facility; or

          (k) (i) any Repurchase Document, or any Lien or security interest granted thereunder, shall
(except in accordance with its terms), in whole or in part, terminate, cease to be effective
or cease to be the legally valid, binding and enforceable obligation of the Seller, the
Guarantor or the Pledgor, or

     (ii) the Seller, the Guarantor, the Pledgor or any other party shall, directly or
indirectly, contest in any manner the effectiveness, validity, binding nature or
enforceability of any Repurchase Document or any Lien or security interest thereunder, or

     (iii) the Purchased Items shall not have been sold to the Purchaser or its designee, or
the Liens contemplated under the Repurchase Documents shall cease or fail to be first
priority perfected Liens on any Purchased Items or the Equity Interests in favor of the Deal
Agent as agent for the Secured Parties or shall be Liens in favor of any Person other than
the Deal Agent as agent for the Secured Parties; or

          (l) the Seller, the Guarantor or the Pledgor shall have failed to observe or perform in any
material respect any of the covenants or agreements of the Seller, the Guarantor or the Pledgor set
forth in this Agreement or the other Repurchase Documents to which the Seller, the Guarantor or the
Pledgor is a party and the same continues unremedied for a period of twenty (20) days after the
earlier to occur of (i) the date on which written notice of such failure requiring the same to be
remedied shall have been given to the Seller, the Guarantor or the Pledgor by the Deal Agent, and
(ii) the date on which the Seller, the Guarantor or the Pledgor becomes aware thereof
(provided, however, in the case of a failure which is capable of cure but cannot
reasonably be cured within such twenty (20) day period (other than the payment of money), and
provided the Seller or the Guarantor shall have timely commenced to cure such failure within such
twenty (20) day period (with evidence of same delivered to the Deal Agent) and thereafter
diligently and expeditiously proceeds to cure the same, such twenty (20) day period shall be
extended for an additional twenty (20) day period); or

          (m) any representation, warranty or certification made by the Seller, the Guarantor or the
Pledgor in this Agreement or any Repurchase Document or in any certificate delivered pursuant to
this Agreement or any Repurchase Document shall prove to have been incorrect in any material
respect when made and that continues to be unremedied for a period of twenty (20) Business Days
after the earlier to occur of (i) the date on which written notice of such incorrectness requiring
the same to be remedied shall have been given to the Seller, the Guarantor or the Pledgor by the
Deal Agent, and (ii) the date on which the Seller, the Guarantor or the Pledgor becomes aware
thereof; or

          (n) the Seller shall have failed to give instructions or notice to the Deal Agent as required
by this Agreement, or to deliver any required reports hereunder, on or before the date such
instruction, notice or report is required to be made or given, as the case may be, under the terms
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failure continues unremedied for a period of two (2) Business Days after the earlier to occur
of (i) the date on which written notice of such failure requiring the same to be remedied shall
have been given to the Seller by the Deal Agent and (ii) the date on which the Seller becomes aware
thereof; or

          (o) the Seller shall have failed to make any payment due with respect to recourse debt or
other obligations or an event or condition shall have occurred that would permit acceleration of
such recourse debt or other obligations whether or not such event or condition has been waived; or

          (p) the Seller shall default in the payment of any Repurchase Price due or any amount due
under Sections 2.7 or 2.8 or any other provision of this Agreement or the
Repurchase Documents when due (whether at stated maturity, upon acceleration or at mandatory or
optional prepayment) or the Seller’s, any Servicer’s or any PSA Servicer’s failure to deposit to
the Collection Account all Income as required by Subsection 5.1(f); or

          (q) the Seller shall default in the payment of any other amount payable by it hereunder or
under any other Repurchase Document after notification by the Deal Agent of such default, and such
default shall have continued unremedied for two (2) Business Days; or

          (r) a final judgment or judgments for the payment of money in excess of $750,000 in the
aggregate shall be rendered against the Seller, the Guarantor or any of their Affiliates by one (1)
or more courts, administrative tribunals or other bodies having jurisdiction, and the same shall
not be satisfied, discharged (or provision shall not be made for such discharge) or bonded, or a
stay of execution thereof shall not be procured, within thirty (30) days from the date of entry
thereof; or

          (s) the Seller shall grant, or suffer to exist, any Lien on any Purchased Item (except
Permitted Liens) or the Pledgor shall grant, permit or suffer to exist any Lien on any portion of
the Equity Interests; or

          (t) the Seller, the Guarantor or any of their Affiliates shall be in default under (i) any
Indebtedness or Guarantee Obligation of the Seller, the Guarantor or of their Affiliates, which
default (A) involves the failure to pay a matured obligation, or (B) permits the acceleration of
the maturity of obligations by any other party to or beneficiary with respect to such Indebtedness,
(ii) any other material Contractual Obligation to which the Seller, the Guarantor or any of their
Affiliates is a party, which default (A) involves the failure to pay a matured obligation, or (B)
permits the acceleration of the maturity of obligations by any other party to or beneficiary of
such contract, or (iii) any Seller–Related Obligation; or

          (u) any Repurchase Price in connection with a Swingline Purchase is not repaid on or before
the date such Repurchase Price is required to be repaid pursuant to Subsection 2.16(c) of
this Agreement; or

          (v) (i) the Seller, the Guarantor or an ERISA Affiliate shall engage in any “prohibited
transaction” (as defined in Section 406 of ERISA or Section 4975 of the Code) involving any Benefit
Plan, (ii) any material “accumulated funding deficiency” (as defined in Section 302 of ERISA),
whether or not waived, shall exist with respect to any Plan, or any Lien in favor of the PBGC or a
Plan shall arise on the assets of the Seller, the Guarantor or any ERISA Affiliate, (iii) a
Reportable Event shall occur with respect to, or proceedings shall commence to have a trustee
appointed, or a trustee shall be appointed, to administer or to terminate, any Plan, which
Reportable Event or commencement of proceedings or appointment of a trustee is, in the reasonable
opinion of the Deal Agent, likely to result in the termination of such Plan for purposes of Title
IV of ERISA, (iv) any Plan shall terminate for purposes of Title IV of ERISA, (v) the Seller, the
Guarantor or any ERISA Affiliate shall, or in the reasonable opinion of the

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Deal Agent is likely to, incur any liability in connection with a withdrawal from, or the
insolvency or reorganization of, a Multiemployer Plan, or (vi) any other event or condition shall
occur or exist with respect to a Plan; and in each case in clauses (i) through (vi)
above, such event or condition, together with all other such events or conditions, if any, could
reasonably be expected to have a Material Adverse Effect; or

          (w) the Seller fails to transfer Purchased Assets on the applicable Purchase Date or fails to
repurchase Purchased Assets on the applicable Repurchase Date; or

          (x) the Pledgor shall cease to own 100% of the issued and outstanding Equity Interests of ARF,
ART shall cease to own indirectly 82% of the issued and outstanding Equity Interests of Arbor
Realty, Arbor TRS Holding Company, Inc. shall cease to own 100% of the Class A membership interest
in ARSR Tahoe and/or Arbor Realty shall cease to own 99% of the issued and outstanding Equity
Interests of ARSR; or

          (y) the Seller, the Guarantor or the Pledgor shall admit its inability to, or its intentions
not to, perform its obligations, covenants or agreements under any Repurchase Document.

          For the purposes of Subsections 10.1(d), (r) and (t) and the next sentence and not with
respect to any other provision of this Agreement, the percentage used in the term Affiliate shall
be 50% instead of 20%. Subject to the preceding sentence, upon the occurrence of any event
described in Subsections 10.1(d), (r) or (t) with respect to any Affiliate, including any Person
that becomes an Affiliate of the Seller, the Pledgor or the Guarantor as a result of an exercise by
the Seller, the Pledgor or the Guarantor of its remedies in connection with a pledge to the Seller,
the Pledgor or the Guarantor of interests in such Person, the Seller shall promptly notify the Deal
Agent of same in writing and the Deal Agent will make a determination in its reasonable discretion
and within a reasonable period of time as to whether such event shall constitute an Event of
Default.

          Section 10.2 Remedies.

          (a) If an Event of Default occurs, the following rights and remedies are available to the Deal
Agent as agent for the Secured Parties; provided, that an Event of Default shall be deemed
to be continuing unless expressly waived by the Deal Agent in writing.

     (i) At the option of the Deal Agent, exercised by written notice to the Seller (which
option shall be deemed to have been exercised, even if no notice is given, immediately upon
the occurrence of an Insolvency Event of the Seller, the Guarantor, the Pledgor or any of
their Affiliates), the Repurchase Date for each Transaction hereunder, if it has not already
occurred, shall be deemed immediately to occur (except that, in the event that the Purchase
Date for any Transaction has not yet occurred as of the date of such exercise or deemed
exercise, such Transaction shall be deemed immediately cancelled). The Deal Agent shall
(except upon the occurrence of an Insolvency of the Seller, the Guarantor, the Pledgor or
any of their Affiliates) give notice to the Seller of the exercise of such option as
promptly as practicable.

     (ii) If the Deal Agent exercises or is deemed to have exercised the option referred to
in Subsection 10.2(a)(i),

                       (A) (1) the Seller’s obligations in such Transactions to repurchase all
Purchased Items, at the Repurchase Price therefor on the Repurchase Date, and,
without duplication, to pay the Aggregate Unpaids and all other amounts owed by the
Seller hereunder and under the other Repurchase Documents, shall thereupon become

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immediately due and payable, (2) all Income paid after such exercise or deemed
exercise shall be retained by the Deal Agent as agent for the Secured Parties and
applied to the aggregate unpaid Repurchase Price, the Aggregate Unpaids and any
other amounts owed by the Seller hereunder and under the other Repurchase Documents,
and (3) the Seller shall immediately deliver to the Deal Agent as agent for the
Secured Parties any Purchased Items subject to such Transactions then in the
Seller’s possession or control; and

                    (B) all Income actually received by the Deal Agent as agent for the Secured
Parties pursuant to Section 2.8 (excluding any Late Payment Fees paid
pursuant to Subsection 2.5(a)) shall be applied to the aggregate unpaid
Repurchase Price and Aggregate Unpaids and any other amounts owed by the Seller
hereunder or the other Repurchase Documents.

     (iii) Upon the occurrence of one or more Events of Default, and subject to Section
6.14, the Deal Agent as agent for the Secured Parties shall have the right to obtain
physical possession of the Servicing Records (subject to the provisions of the Custodial
Agreement), the Servicing Files and all other files of the Seller relating to the Purchased
Items and all documents relating to the Purchased Items which are then or may thereafter
come into the possession of the Seller or any third party acting for the Seller, and the
Seller shall deliver to the Deal Agent such assignments as the Deal Agent shall request, and
the Deal Agent shall have the right to appoint any Person to act as the Servicer for the
Purchased Assets. The Deal Agent shall be entitled to specific performance of all
agreements of the Seller contained in the Repurchase Documents.

     (iv) At any time after the second (2nd) Business Day following notice to the Seller
(which notice may be the notice given under Subsection 10.2(a)(i)), in the event the
Seller has not repurchased all Purchased Items, the Deal Agent as agent for the Secured
Parties may (A) immediately sell, without demand or further notice of any kind, at a public
or private sale and at such price or prices as the Deal Agent may deem reasonably
satisfactory any or all Purchased Items subject to such Transactions hereunder and apply the
proceeds thereof to the aggregate unpaid Repurchase Price, the Aggregate Unpaids and any
other amounts owed by the Seller hereunder and under the other Repurchase Documents, or (B)
in its sole discretion, elect, in lieu of selling all or a portion of such Purchased Items,
to give the Seller credit for such Purchased Items in an amount equal to the Market Value of
the Purchased Items against the aggregate unpaid Repurchase Price, the Aggregate Unpaids and
any other amounts owing by the Seller hereunder and under the other Repurchase Documents.
The proceeds of any disposition of Purchased Items shall be applied first to the costs and
expenses incurred by the Deal Agent in connection with the Seller’s default; second to the
costs of related covering and/or related hedging transactions; third to the Repurchase
Price; fourth to the Aggregate Unpaids and any other amounts owed by the Seller hereunder or
under the other Repurchase Documents; and fifth to the Seller.

     (v) The Seller agrees that the Deal Agent may obtain an injunction or an order of
specific performance to compel the Seller to fulfill any of its obligations as set forth in
Article X if the Seller fails or refuses to perform its obligations as set forth
therein.

     (vi) The Seller shall be liable to the Deal Agent as agent for the Secured Parties,
payable as and when incurred by the Deal Agent, for (A) the amount of all reasonable actual
out–of–pocket expenses, including legal or other expenses incurred by the Deal Agent in
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with or as a consequence of an Event of Default, and (B) all reasonable costs incurred
in connection with hedging or covering transactions.

          (vii) The Deal Agent as agent for the Secured Parties shall have, in addition to its
rights hereunder, any rights otherwise available to it under any other agreement or
Applicable Law.

          (b) The Deal Agent as agent for the Secured Parties may exercise one or more of the remedies
available to the Deal Agent immediately upon the occurrence of an Event of Default and, except to
the extent provided in Subsections 10.2(a)(i) and 10.2(a)(iv), at any time
thereafter without notice to the Seller. All rights and remedies arising under this Agreement, as
amended from time to time, are cumulative and not exclusive of any other rights or remedies that
the Deal Agent as agent for the Secured Parties may have.

          (c) The Deal Agent as agent for the Secured Parties may enforce its rights and remedies
hereunder without prior judicial process or hearing, and the Seller hereby expressly waives any
defenses the Seller might otherwise have to require the Deal Agent as agent for the Secured Parties
to enforce its rights by judicial process. The Seller also waives any defense (other than a
defense of payment or performance) the Seller might otherwise have arising from the use of
nonjudicial process, enforcement and sale of all or any portion of the Purchased Items, or from any
other election of remedies. The Seller recognizes that nonjudicial remedies are consistent with
the usages of the trade, are responsive to commercial necessity and are the result of a bargain at
arm’s–length.

          (d) To the extent permitted by Applicable Law, the Seller shall be liable to the Deal Agent as
agent for the Secured Parties for interest on any amounts owing by the Seller hereunder, from the
date the Seller becomes liable for such amounts hereunder until such amounts are (i) paid in full
by the Seller or (ii) satisfied in full by the exercise of the Deal Agent’s rights hereunder.
Interest on any sum payable by the Seller to the Deal Agent as agent for the Secured Parties under
this Subsection 10.2(d) shall accrue interest from and after the date of the Event of
Default at a rate equal to the Post–Default Rate.

          (e) In addition to the rights under this Section 10.2, upon an Event of Default the
Purchaser shall no longer be obligated to enter into any additional Transactions pursuant to any
outstanding Confirmation and the Deal Agent as agent for the Secured Parties shall have the
following additional rights if an Event of Default occurs:

     (i) The Deal Agent as agent for the Secured Parties, the Purchaser and the Seller agree
and acknowledge that the Purchased Assets constitute collateral that may decline rapidly in
value. Accordingly, notwithstanding anything to the contrary in this Agreement, the Deal
Agent as agent for the Secured Parties shall not be required to give notice to the Seller or
any other Repurchase Party prior to exercising any remedy in respect of an Event of Default.
If no prior notice is given, the Deal Agent shall give notice to the Seller of the remedies
effected by the Deal Agent as agent for the Secured Parties promptly thereafter. The Deal
Agent shall act in good faith in exercising its rights pursuant to this section.

     (ii) The Deal Agent as agent for the Secured Parties may, in its sole discretion, elect
to hold any Purchased Asset for its own account and earn the related interest on the full
face amount thereof.

          (f) The Deal Agent as agent for the Secured Parties shall have, in addition to its rights
hereunder, any rights otherwise available to it under any other agreement or Applicable Law.

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          (g) Neither the Seller, the Guarantor nor any other Person shall be permitted to cure an Event
of Default after the Purchaser has accelerated the Obligations unless the Purchaser otherwise
consents.

          Section 10.3 Determination of Events of Default.

          In making a determination as to whether an Event of Default has occurred, the Deal Agent shall
be entitled to rely on reports published or broadcast by media sources believed by the Deal Agent
to be generally reliable and on information provided to it by any other sources believed by it to
be generally reliable, provided that (i) the Deal Agent reasonably and in good faith believes such
information to be accurate and has taken such steps as may be reasonable in the circumstances
(including consulting with the Seller, the Pledgor and/or the Guarantor) to attempt to verify such
information.

ARTICLE XI

INDEMNIFICATION

          Section 11.1 Indemnities by the Seller.

          (a) The Seller agrees to hold the Purchaser, the Deal Agent, any Secured Party, any Affected
Party and any Affiliates of the Purchaser, the Deal Agent, any Secured Party and any Affected Party
and the Purchaser’s, the Deal Agent’s, any Secured Party’s, any Affected Party’s and their
Affiliates’ officers, directors, shareholders, partners, members, owners, employees, agents,
attorneys, Affiliates and advisors (each an “Indemnified Party” and collectively the
“Indemnified Parties”) harmless from and indemnify any Indemnified Party against all
liabilities, losses, damages, judgments, costs, expenses, penalties or fines of any kind that may
be imposed on, incurred by or asserted against such Indemnified Party (collectively, the
“Indemnified Amounts”) in any way relating to, arising out of or resulting from (i) the
Facility, this Agreement, the Repurchase Documents, the Mortgage Loan Documents, any Purchased
Item, the Pledged Collateral and any other collateral for the Facility or any transaction or
Transaction contemplated hereby or thereby, or any amendment, supplement, extension or modification
of, or any waiver or consent under or in respect of, this Agreement, the Repurchase Documents, the
Mortgage Loan Documents, any Purchased Item, the Pledged Collateral and any other collateral for
the Facility, or any transaction or Transaction contemplated hereby or thereby, (ii) any Mortgage
Asset, any Purchased Item, any Pledged Collateral or any other collateral for the Facility, (iii)
any violation or alleged violation of, non-compliance with or liability under any Applicable Law
(including, without limitation, violation of securities laws and Environmental Laws), (iv)
ownership of, Liens on, security interests in or the exercise of rights and/or remedies under the
Repurchase Documents, the Mortgage Loan Documents, the Purchased Items, the Pledged Collateral, any
other collateral for the Facility, the Underlying Mortgaged Property, any other related Property or
collateral or any part thereof or any interest therein or receipt of any Income or rents, (v) any
accident, injury to or death of any person or loss of or damage to property occurring in, on or
about any Underlying Mortgaged Property, any other related Property or collateral or any part
thereof, the Purchased Items or on the adjoining sidewalks, curbs, parking areas, streets or ways,
(vi) any use, nonuse or condition in, on or about, or possession, alteration, repair, operation,
maintenance or management of, any Underlying Mortgaged Property, any other related Property or
collateral or any part thereof or on the adjoining sidewalks, curbs, parking areas, streets or
ways, (vii) any failure on the part of the Seller, the Guarantor or the Pledgor to perform or
comply with any of the terms of the Mortgage Loan Documents, the Repurchase Documents, the
Purchased Items, the Pledged Collateral or any other collateral for the Facility, (viii)
performance of any labor or services or the furnishing of any materials or other property in
respect of the Underlying Mortgaged Property, any other related Property or collateral, the
Purchased Items or any part thereof, (ix) any claim by brokers, finders or similar Persons claiming
to be entitled to a commission in connection with any lease or other transaction involving any

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Underlying Mortgaged Property, any other related Property or collateral, the Purchased Items
or any part thereof or the Repurchase Documents, (x) any Taxes including, without limitation, any
Taxes attributable to the execution, delivery, filing or recording of any Repurchase Document, any
Mortgage Loan Document or any memorandum of any of the foregoing, (xi) any Lien or claim arising on
or against the Underlying Mortgaged Property, any other related Property or collateral, the Pledged
Collateral, the Purchased Items or any part thereof under any Applicable Law or any liability
asserted against the Deal Agent, the Purchaser, any Secured Party or any Affected Party with
respect thereto, (xii) the claims of any lessee or any Person acting through or under any lessee or
otherwise arising under or as a consequence of any leases with respect to any Underlying Mortgaged
Property, related Property or collateral, or any claims of a Borrower, (xiii) any civil penalty or
fine assessed by OFAC against, and all reasonable costs and expenses (including counsel fees and
disbursements) incurred in connection with the defense thereof, by any Indemnified Party as a
result of conduct of the Seller, the Pledgor or the Guarantor that violates any sanction enforced
by OFAC, (xiv) any and all Indemnified Amounts arising out of, attributable or relating to,
accruing out of, or resulting from (1) a past, present or future violation or alleged violation of
any Environmental Laws in connection with any Property or Underlying Mortgaged Property by any
Person or other source, whether related or unrelated to the Seller, the Pledgor, the Guarantor or
any Borrower, (2) any presence of any Materials of Environmental Concern in, on, within, above,
under, near, affecting or emanating from any Property or Underlying Mortgaged Property, (3) the
failure to timely perform any Remedial Work, (4) any past, present or future activity by any Person
or other source, whether related or unrelated to the Seller, the Pledgor, the Guarantor or any
Borrower in connection with any actual, proposed or threatened use, treatment, storage, holding,
existence, disposition or other release, generation, production, manufacturing, processing,
refining, control, management, abatement, removal, handling, transfer or transportation to or from
any Property or Underlying Mortgaged Property of any Materials of Environmental Concern at any time
located in, under, on, above or affecting any Property or Underlying Mortgaged Property, (5) any
past, present or future actual Release (whether intentional or unintentional, direct or indirect,
foreseeable or unforeseeable) to, from, on, within, in, under, near or affecting any Property or
Underlying Mortgaged Property by any Person or other source, whether related or unrelated to the
Seller, the Guarantor, any other Repurchase Party or any Borrower, (6) the imposition, recording or
filing or the threatened imposition, recording or filing of any Lien on any Property or Underlying
Mortgaged Property with regard to, or as a result of, any Materials of Environmental Concern or
pursuant to any Environmental Law, or (7) any misrepresentation or inaccuracy in any representation
or warranty in any material respect or material breach or failure to perform any covenants or other
obligations pursuant to this Agreement, the other Repurchase Documents or any of the Mortgage Loan
Documents or relating to environmental matters in any way including, without limitation, under any
of the Mortgage Loan Documents or (xv) any representation or warranty made or deemed made by the
Seller, the Guarantor or any of their respective officers under or in connection with this
Agreement or any other Repurchase Document, that shall have been false or incorrect in any material
respect when made or deemed made or delivered, (xvi) the failure by the Seller, the Guarantor or
any Servicer to comply with any term, provision or covenant contained in this Agreement, the
Repurchase Documents, any Servicing Agreement or any agreement executed in connection with the
foregoing agreements, or with any Applicable Law or with respect to any Purchased Items, or the
nonconformity of any Purchased Items with any such Applicable Law, (xvii) the failure to vest and
maintain vested in the Purchaser or Deal Agent, as agent for the Secured Parties, an undivided
ownership interest in the Purchased Assets, together with all Income, free and clear of any Lien
(other than Permitted Liens) whether existing at the time of any Transaction or at any time
thereafter, (xviii) the aggregate Repurchase Price for all Transactions exceeding the Maximum
Amount on any Business Day, (xix) the failure to file, or any delay in filing, financing
statements, continuation statements or other similar instruments or documents under the UCC of any
applicable jurisdiction or other Applicable Laws with respect to any Purchased Items, whether at
the time of any Transaction or at any subsequent time, (xx) any dispute, claim, offset or defense
(other than the discharge in bankruptcy of the Borrower) of the Borrower to the payment with
respect to any Purchased Item (including, without limitation, a defense based on the Purchased Item
not being a legal,

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valid and binding obligation of such Borrower enforceable against it in accordance with its
terms), or any other claim resulting from the sale of the merchandise or services related to such
Purchased Item or the furnishing or failure to furnish such merchandise or services, (xxi) any
failure of the Seller, the Guarantor or any Servicer to perform its duties or obligations in
accordance with the provisions of this Agreement, any Servicing Agreement or any of the other
Repurchase Documents or any failure by the Seller, the Guarantor, any Servicer or any Affiliate of
the Seller or the Guarantor to perform its respective duties under any Purchased Item, (xxii) the
failure of the Seller, the Guarantor or any Servicer to remit any Income due hereunder to the
Collection Account on or before the date such Income is required to be deposited therein (whether
by the exercise of setoff rights or otherwise), (xxiii) any inability to obtain any judgment in, or
utilize the court or other adjudication system of, any state in which a Borrower may be located as
a result of the failure of the Seller to qualify to do business or file any notice or business
activity report or any similar report, (xxiv) any action taken by the Seller, the Guarantor or any
Servicer in the enforcement, collection or foreclosure of any Purchased Item, (xxv) any products
liability claim or personal injury or property damage suit or other similar or related claim or
action of whatever sort arising out of or in connection with the Purchased Assets or services that
are the subject of any Purchased Item, (xxvi) any claim, suit or action of any kind or nature
whatsoever arising out of or in connection with Environmental Laws including any vicarious
liability, (xxvii) the failure by the Seller or the Guarantor to pay when due any Taxes for which
the Seller or the Guarantor is liable, including, without limitation, sales, excise or personal
property taxes payable in connection with the Purchased Items, (xxviii) any repayment by the Deal
Agent, the Purchaser, any Secured Party or any Affected Party of any amount previously distributed
in payment of the Repurchase Price, payment of Price Differential or the Aggregate Unpaids or any
other amount due hereunder or under any Interest Rate Protection Agreement, in each case which
amount the Deal Agent, the Purchaser, any Secured Party or any Affected Party believes in good
faith is required to be repaid, (xxix) the commingling of Income on the Purchased Items at any time
with other funds, (xxx) any investigation, litigation or proceeding related to this Agreement or
the use of proceeds of Transactions or the security interest in the Purchased Items, (xxxi) any
failure by the Seller to give reasonably equivalent value to the Transferors in consideration for
the transfer by the Transferors to the Seller of any item of the Purchased Items or any attempt by
any Person to void or otherwise avoid any such transfer under any statutory provision or common law
or equitable action, including, without limitation, any provision of the Bankruptcy Code, (xxxii)
the use of the proceeds of any Transaction in a manner other than as provided in this Agreement and
the Purchase Agreements, (xxxiii) any Purchased Asset treated as or represented as an Eligible
Asset or as satisfying the representations and warranties set forth in Schedule 1 that, at
the applicable time, does not satisfy the foregoing criteria, (xxxiv) the exercise by any Borrower
of any rights of setoff against the Seller, the Guarantor or any of their Affiliates or the
exercise of any rights by a Borrower that impacts, impairs, reduces or diminishes any Income or any
Purchased Asset, (xxxv) the failure by the Seller to comply with any of the covenants relating to
the Interest Rate Protection Agreements or (xxxvi) the Seller’s, the Guarantor’s and/or the
Pledgor’s conduct, activities, actions and/or inactions in connection with, relating to or arising
out of any of the foregoing clauses of this Subsection 11.1(a), that, in each case, results
from anything other than any Indemnified Party’s gross negligence or willful misconduct. In any
suit, proceeding or action brought by an Indemnified Party in connection with any Purchased Item,
the Pledged Collateral or any other collateral for the Facility for any sum owing thereunder, or to
enforce any provisions of any Purchased Item, the Pledged Collateral or any other collateral for
the Facility, the Seller shall save, indemnify and hold such Indemnified Party harmless from and
against all expense, loss or damage suffered by reason of any defense, set–off, counterclaim,
recoupment or reduction of liability whatsoever of the account debtor, obligor or Borrower
thereunder arising out of a breach by the Seller, the Guarantor or the Pledgor of any obligation
thereunder or arising out of any other agreement, indebtedness or liability at any time owing to or
in favor of such account debtor, obligor or Borrower or its successors from the Seller, the
Guarantor or the Pledgor. The Seller also agrees to reimburse an Indemnified Party as and when
billed by such Indemnified Party for all such Indemnified Party’s costs, expenses and fees incurred
in connection with the enforcement or the preservation of such Indemnified Party’s rights under
this Agreement, the

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Repurchase Documents, the Mortgage Loan Documents and any transaction or Transaction
contemplated hereby or thereby, including, without limitation, the reasonable fees and
disbursements of its counsel. In the case of an investigation, litigation or other proceeding to
which the indemnity in this Subsection 11.1(a) applies, such indemnity shall be effective
whether or not such investigation, litigation or proceeding is brought by the Seller, the
Guarantor, the Pledgor and/or any of their officers, directors, shareholders, employees or
creditors, an Indemnified Party or any other Person or any Indemnified Party is otherwise a party
thereto and whether or not any transaction contemplated hereby is consummated.

          (b) Any amounts subject to the indemnification provisions of this Section 11.1 shall
be paid by the Seller to the Indemnified Party within five (5) Business Days following such
Person’s demand therefor. For the avoidance of doubt, an Indemnified Party may seek payment of any
Indemnified Amount at any time and regardless of whether a Default or an Event of Default then
exists or is continuing.

          (c) If for any reason the indemnification provided in this Section 11.1 is unavailable
to the Indemnified Party, other than unavailability due to the gross negligence or willful
misconduct of such Indemnified Party, or is insufficient to hold an Indemnified Party harmless,
then the Seller shall contribute to the amount paid or payable by such Indemnified Party as a
result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not
only the relative benefits received by such Indemnified Party on the one hand and the Seller and
the Guarantor on the other hand but also the relative fault of such Indemnified Party as well as
any other relevant equitable considerations.

          (d) The obligations of the Seller under this Article XI shall survive the resignation
or removal of the Deal Agent and the termination of this Agreement.

          Section 11.2 After–Tax Basis.

          Indemnification under Section 11.1 shall be in an amount necessary to make the
Indemnified Party whole after taking into account any tax consequences to the Indemnified Party of
the receipt of the indemnity provided hereunder, including the effect of such tax or refund on the
amount of tax measured by net income or profits that is or was payable by the Indemnified Party.

ARTICLE XII

THE DEAL AGENT

          Section 12.1 Deal Agent.

          (a) Authorization and Action. The Purchasers hereby designate and appoint WCM as the
Deal Agent hereunder and authorize the Deal Agent to act as agent and bailee and take such actions
as agent and bailee on behalf of the Purchasers and the other Secured Parties and to exercise such
powers as are delegated to the Deal Agent by the terms of this Agreement, together with such powers
as are reasonably incidental thereto. The Deal Agent shall not have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary relationship with VFCC
or any Secured Party, and no implied covenants, functions, responsibilities, duties, obligations or
liabilities on the part of the Deal Agent shall be read into this Agreement or otherwise exist for
the Deal Agent. In performing its functions and duties hereunder, the Deal Agent shall act solely
as an agent for VFCC and the other Secured Parties and does not assume nor shall be deemed to have
assumed any obligation or relationship of trust or agency with or for the Seller, the Guarantor,
the Pledgor or any of their successors or assigns. The Deal Agent shall not be required to take
any action that exposes the Deal Agent to personal liability or that is contrary to this

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Agreement or Applicable Law. The appointment and authority of the Deal Agent hereunder shall
terminate at the indefeasible payment in full of the Obligations.

          (b) Delegation of Duties. The Deal Agent may execute any of its duties under this
Agreement or the other Repurchase Documents by or through agents, bailees or attorneys–in–fact and
shall be entitled to the advice of counsel concerning all matters pertaining to such duties. The
Deal Agent shall not be responsible for the negligence or misconduct of any agents or
attorneys–in–fact selected by it with reasonable care.

          (c) Exculpatory Provisions. Neither the Deal Agent nor any of its directors,
officers, agents or employees shall be (i) liable for any action lawfully taken or omitted to be
taken by it or them under or in connection with this Agreement (except for its, their or such
Person’s own gross negligence or willful misconduct or, in the case of the Deal Agent, the breach
of its obligations expressly set forth in this Agreement), or (ii) responsible in any manner to
VFCC or any other Secured Party for any recitals, statements, representations or warranties made by
the Seller contained in this Agreement or in any certificate, report, statement or other document
referred to or provided for in, or received under or in connection with, this Agreement, for the
value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any
other document furnished in connection herewith, for any failure of the Seller to perform its
obligations hereunder, or for the satisfaction of any condition specified in Article III.
The Deal Agent shall not be under any obligation to VFCC or any other Secured Party to ascertain or
to inquire as to the observance or performance of any of the agreements or covenants contained in,
or conditions of, this Agreement, or to inspect the Properties, books or records of the Seller.
The Deal Agent shall not be deemed to have knowledge of any Default, Event of Default or Servicer
Default unless the Deal Agent has received notice from the Seller or a Secured Party.

          (d) Reliance. The Deal Agent shall in all cases be entitled to rely, and shall be
fully protected in relying, upon any 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 the Seller), independent
accountants and other experts selected by the Deal Agent. The Deal Agent shall in all cases be
fully justified in failing or refusing to take any action under this Agreement or any other
document furnished in connection herewith unless it shall first receive such advice or concurrence
of VFCC and the other Secured Parties, as it deems appropriate, or it shall first be indemnified to
its satisfaction by VFCC and the other Secured Parties; provided, that, unless and
until the Deal Agent shall have received such advice, the Deal Agent may take or refrain from
taking any action as the Deal Agent shall deem advisable and in the best interests of VFCC and the
other Secured Parties. The Deal Agent shall in all cases be fully protected in acting, or in
refraining from acting, in accordance with a request of VFCC and the other Secured Parties, and
such request and any action taken or failure to act pursuant thereto shall be binding upon VFCC and
the other Secured Parties.

          (e) Non–Reliance on the Deal Agent and Other Purchaser. VFCC and the other Secured
Parties expressly acknowledge that neither the Deal Agent nor any of its officers, directors,
employees, agents, attorneys–in–fact or affiliates has made any representations or warranties to it
and that no act by the Deal Agent hereafter taken, including, without limitation, any review of the
affairs of the Seller, shall be deemed to constitute any representation or warranty by the Deal
Agent. Each of VFCC and the other Secured Parties represent and warrant to the Deal Agent that it
has made and will make, independently and without reliance upon the Deal Agent, and based on such
documents and information as it has deemed appropriate, its own appraisal of and investigation into
the business, operations, property, prospects, financial and other conditions and creditworthiness
of the Seller and has made its own decision to enter into this Agreement.

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          (f) The Deal Agent in its Individual Capacity. The Deal Agent and any of its
Affiliates may make loans to, accept deposits from and generally engage in any kind of business
with the Seller or any Affiliate of the Seller as though the Deal Agent were not the Deal Agent
hereunder. With respect to the Transactions entered into pursuant to this Agreement, the Deal
Agent and each of its Affiliates shall have the same rights and powers under this Agreement as the
Purchaser and may exercise the same as though it were not the Deal Agent and the terms “Purchaser”
shall include the Deal Agent in its individual capacity.

          (g) Successor Deal Agent. The Deal Agent may, upon thirty (30) days’ notice to the
Seller and VFCC, and the Deal Agent will, upon the direction of VFCC, resign as Deal Agent. If the
Deal Agent shall resign, then VFCC, during such thirty (30) day period, shall appoint a successor
agent. If for any reason no successor Deal Agent is appointed by VFCC during such thirty (30) day
period, then effective upon the expiration of such thirty (30) day period, the Seller shall make
all payments it otherwise would have made to the Deal Agent in respect of the Obligations or under
the Fee Letter directly to VFCC and for all purposes shall deal directly with VFCC. After any
retiring Deal Agent’s resignation hereunder as Deal Agent, the provisions of Article XI and
Article XII shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was the Deal Agent under this Agreement.

ARTICLE XIII

MISCELLANEOUS

          Section 13.1 Amendments and Waivers.

          Except as provided in this Section 13.1, no amendment, waiver or other modification of
any provision of this Agreement shall be effective without the written agreement of the Seller, the
Deal Agent, the Purchaser and the Guarantor; provided, however, that, no such amendment, waiver or
modification that is material shall be effective unless (if and to the extent required by the
commercial paper program of the Purchaser) the Rating Agencies shall have provided Ratings
Confirmations. Any waiver or consent shall be effective only if it is in writing and only in the
specific instance and for the specific purpose for which given.

          Section 13.2 Notices, Etc.

          All notices and other communications provided for hereunder shall, unless otherwise stated
herein, be in writing (including telex communication and communication by facsimile copy) and
mailed, telexed, transmitted or delivered, as to each party hereto, at its address set forth under
its name on the signature pages hereof or at such other address as shall be designated by such
party in a written notice to the other parties hereto. All such notices and communications shall
be effective, upon receipt, or in the case of (a) notice by mail, five (5) days after being
deposited in the United States mail, first class postage prepaid, (b) notice by telex, when telexed
against receipt of answer back, or (c) notice by facsimile copy, when verbal communication of
receipt is obtained.

          Section 13.3 Set–offs.

          (a) In addition to any rights and remedies of the Deal Agent, the Purchaser or any Secured
Party provided by this Agreement, the Repurchase Documents and by Applicable Law, the Purchaser and
the Deal Agent as agent for the Secured Parties shall have the right, without prior notice to
Seller or the Guarantor, any such notice being expressly waived by Seller and the Guarantor to the
extent permitted by Applicable Law, upon any amount becoming due and payable by Seller or the
Guarantor to the Deal Agent, the Purchaser or any Secured Party hereunder, under the Repurchase
Documents or otherwise

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(whether at the stated maturity, by acceleration or otherwise) to set–off and appropriate and
apply against such amount any and all monies and other property of Seller or the Guarantor, any and
all deposits (general or special, time or demand, provisional or final), in any currency, and any
and all other credits, indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, and in each case at any time held or owing
by the Deal Agent, the Purchaser, any Secured Party or any Affiliate thereof to or for the credit
or the account of Seller or the Guarantor.

          (b) If any Secured Party, whether by setoff or otherwise, has payment made to it with respect
to any portion of the Obligations owing to such Secured Party (other than payments received
pursuant to Section 11.1) in a greater proportion than that received by any other Secured
Party, such Secured Party agrees, promptly upon demand, to purchase for cash without recourse or
warranty a portion of the Obligations held by the other Secured Parties so that after such purchase
each Secured Party will hold its ratable proportion of the Obligations; provided, however,
that if all or any portion of such excess amount is thereafter recovered from such Secured Party,
such purchase shall be rescinded and the purchase price restored to the extent of such recovery,
but without interest.

          (c) The Deal Agent will promptly notify the affected Seller, the Guarantor, the Pledgor and/or
any Affiliate or Subsidiary that is directly or indirectly wholly–owned by the Seller, the
Guarantor and/or the Pledgor after any such set–off and application made by the Deal Agent as agent
for the Secured Parties or the Purchaser, provided that the failure to give such notice shall not
affect the validity of such set–off and application.

          Section 13.4 No Waiver; Remedies.

          No failure on the part of the Deal Agent, the Purchaser, a Secured Party or an Affected Party
to exercise, and no delay in exercising, any right or remedy hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any right or remedy hereunder preclude any
further exercise thereof or the exercise of any other right. The rights and remedies herein
provided are cumulative and not exclusive of any rights and remedies provided by law.

          Section 13.5 Binding Effect.

          This Agreement shall be binding upon and inure to the benefit of the Seller, the Deal Agent,
the Purchaser, the Secured Parties, the Affected Parties and the Guarantor and their respective
successors and permitted assigns.

          Section 13.6 Term of this Agreement.

          (a) This Agreement, including, without limitation, the Seller’s and the Guarantor’s
representations, covenants and duties set herein, create and constitute the continuing obligation
of the parties hereto in accordance with its terms and shall remain in full force and effect until
the Aggregate Unpaids are paid in full; provided, however, that the indemnification
and payment provisions of Article XI, the provisions of Subsections 2.5(b),
2.13, 2.14, 13.9, 13.11 and 13.13 and any other provision that by
its terms expressly survives termination, shall be continuing and shall survive any termination of
this Agreement.

          (b) Subject to Subsection 13.6(a), this Agreement may be terminated by the Deal Agent
or the Seller upon giving written notice to the other and to the Guarantor, except that this
Agreement shall, notwithstanding such notice, remain applicable to any Transaction then
outstanding.

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          Section 13.7 Governing Law; Consent to Jurisdiction; Waiver of Objection to Venue.

          THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK (WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF). EACH OF THE PARTIES
HERETO HEREBY AGREES TO THE NON–EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN
THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON
CONVENIENS AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE
AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED
APPROPRIATE BY SUCH COURT.

          Section 13.8 Jurisdiction; Waiver of Jury Trial.

          (a) EACH OF THE PARTIES HERETO HEREBY AGREES TO THE NON–EXCLUSIVE JURISDICTION OF ANY FEDERAL
COURT LOCATED WITHIN THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO AND EACH SECURED PARTY
HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS AND ANY OBJECTION TO VENUE OF ANY ACTION
INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL
OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.

          (b) TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO HEREBY WAIVES ANY
RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR
OTHERWISE BETWEEN THE PARTIES HERETO ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO
THE RELATIONSHIP BETWEEN ANY OF THEM IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. INSTEAD, ANY SUCH DISPUTE RESOLVED IN COURT WILL BE RESOLVED IN A BENCH TRIAL
WITHOUT A JURY.

          Section 13.9 Costs, Expenses and Taxes.

          (a) The Seller agrees to pay as and when billed by the Deal Agent, the Purchaser, the Secured
Parties or any Affected Party all of the reasonable out–of–pocket costs and expenses incurred by
the Deal Agent, the Purchaser, the Secured Parties and/or any Affected Party in connection with the
development, preparation, execution and delivery of, and any amendment, supplement, renewal,
extension or modification to or waiver of, this Agreement, the Repurchase Documents, any
Transaction hereunder and any other documents and agreements prepared in connection herewith or
therewith. The Seller agrees to pay as and when billed by the Deal Agent, the Purchaser, any
Secured Party and/or any Affected Party all of the out–of–pocket costs and expenses incurred in
connection with the consummation and administration of the transactions contemplated hereby and
thereby including, without limitation, (i) all the reasonable fees and out–of–pocket expenses of
counsel for the Deal Agent, the Purchaser, the Secured Parties and the Affected Parties with
respect thereto and with respect to advising the Deal Agent, the Purchaser, the Secured Parties and
the Affected Parties as to their respective rights and remedies under this Agreement, the
Repurchase Documents and the other documents to be delivered hereunder or in connection herewith,
(ii) all costs and expenses, if any (including reasonable counsel fees and expenses) incurred by
the Deal Agent, the Purchaser, the Secured Parties and the Affected Parties in connection with the
enforcement of this Agreement, the Repurchase Documents and the other documents to be delivered
hereunder or thereunder or in connection herewith or therewith and (iii) all the due diligence,
inspection, audit, testing, review, recording, travel, lodging or other administrative costs and

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expenses incurred by the Deal Agent, the Purchaser, the Secured Parties and/or any Affected
Party with respect to such Person’s review, consideration and purchase or proposed purchase of any
Mortgage Asset, any Purchased Asset or any Purchased Item under this Agreement and the other
Repurchase Documents (including any costs necessary or incidental to the execution of any
Transaction under this Agreement), including, but not limited to, those costs and expenses incurred
by the Deal Agent, the Purchaser, the Secured Parties and/or any Affected Party and reimbursable by
the Seller pursuant to Subsection 11.1(a) of this Agreement.

          (b) The Seller shall pay on demand any and all stamp, sales, excise and other taxes and fees
payable or determined to be payable in connection with the execution, delivery, filing and
recording of this Agreement, the Repurchase Documents or the other documents to be delivered
hereunder or thereunder or any agreement or other document providing liquidity support, credit
enhancement or other similar support to the Purchaser in connection with this agreement or the
funding or maintenance of Transactions hereunder.

          (c) The Seller shall pay on demand all other reasonable costs, expenses and Taxes (excluding
income taxes) incurred by the Deal Agent, the Purchaser, the Secured Parties and the Affected
Parties (“Other Costs”), including without limitation, all costs and expenses incurred by the Deal
Agent, the Purchaser, the Secured Parties and the Affected Parties in connection with periodic
audits of the Seller’s, the Guarantor’s, the Pledgor’s or any Servicer’s books and records.

          Section 13.10 Legal Matters.

          (a) In the event of any conflict between the terms of this Agreement, any other Repurchase
Document and any Confirmation, the documents shall control in the following order of priority:
first, the terms of the Confirmation shall prevail, then the terms of this Agreement shall
prevail, and then the terms of the other Repurchase Documents shall prevail.

          (b) Each of the Seller and the Guarantor hereby acknowledges that:

     (i) it has been advised by counsel in the negotiation, execution and delivery of the
Repurchase Documents;

     (ii) it has no fiduciary relationship with the Deal Agent, the Purchaser or any Secured
Party; and

     (iii) no joint venture exists with the Deal Agent, the Purchaser or any Secured Party.

          Section 13.11 Recourse Against Certain Parties.

          (a) No recourse under or with respect to any obligation, covenant, duty or agreement
(including, without limitation, the payment of any fees or any other obligations) of the Deal
Agent, the Purchaser, any Secured Party, any Affected Party, the Seller or the Guarantor as
contained in this Agreement, the Repurchase Documents or any other agreement, instrument or
document entered into by the Purchaser, any Secured Party, any Affected Party, the Seller, the
Guarantor or any such party pursuant hereto or thereto or in connection herewith or therewith shall
be had against any administrator of the Deal Agent, the Purchaser, any Secured Party, any Affected
Party, the Seller or the Guarantor or any incorporator, Affiliate (direct or indirect), owner,
member, partner, stockholder, officer, director, employee, agent or attorney of the Deal Agent, the
Purchaser, any Secured Party, any Affected Party, the Seller or the Guarantor or of any such
administrator, as such, by the enforcement of any assessment or by any legal or equitable
proceeding, by virtue of any statute or otherwise; it being expressly agreed and

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understood that the agreements of each of the Deal Agent, the Purchaser, the Secured Parties,
the Affected Parties, the Seller and the Guarantor contained in this Agreement, the Repurchase
Documents and all of the other agreements, instruments and documents entered into by it pursuant
hereto or thereto or in connection herewith or therewith are, in each case, solely the corporate
obligations of the Deal Agent, the Purchaser, the Secured Parties, the Affected Parties, the Seller
and the Guarantor, and that no personal liability whatsoever shall attach to or be incurred by any
administrator of the Deal Agent, the Purchaser, the Secured Parties, the Affected Parties, the
Seller or the Guarantor or any incorporator, owner, member, partner, stockholder, Affiliate (direct
or indirect), officer, director, employee, agent or attorney of the Deal Agent, the Purchaser, the
Secured Parties, the Affected Parties, the Seller or the Guarantor, or of any such administrator,
as such, or any other of them, under or by reason of any of the obligations, duties, covenants or
agreements of the Deal Agent, the Purchaser, the Secured Parties, the Affected Parties, the Seller
or the Guarantor contained in this Agreement, the Repurchase Documents or in any other such
instruments, documents or agreements, or that are implied therefrom, and that any and all personal
liability of every such administrator of the Deal Agent, the Purchaser, any Secured Party, any
Affected Party, the Seller or the Guarantor and each incorporator, owner, member, partner,
stockholder, Affiliate (direct or indirect), officer, director, employee, agent or attorney of the
Deal Agent, the Purchaser, the Secured Parties, the Affected Parties, the Seller or the Guarantor,
or of any such administrator, or any of them, for breaches by the Deal Agent, the Purchaser, the
Secured Parties, the Affected Parties, the Seller or the Guarantor of any such obligations, duties,
covenants or agreements, which liability may arise either at common law or at equity, by statute or
constitution, or otherwise, is hereby expressly waived as a condition of and in consideration for
the execution of this Agreement. The provisions of this Section 13.11 shall survive the
termination of this Agreement.

          (b) Notwithstanding anything in this Agreement to the contrary, neither VFCC nor any other
Purchaser that is a commercial paper conduit shall have any obligation to pay any amount required
to be paid by it hereunder in excess of any amount available to VFCC or any other Purchaser that is
a commercial paper conduit after paying or making provision for the payment of its Commercial Paper
Notes. All payment obligations of VFCC and the other Purchasers that are commercial paper conduits
hereunder are contingent on the availability of funds to such Purchaser in excess of the amounts
necessary to pay its Commercial Paper Notes; and each of the other parties hereto agrees that it
shall not have a claim under Section 101(5) of the Bankruptcy Code if and to the extent that any
such payment obligation owed to it by VFCC or any other Purchaser that is a commercial paper
conduit, as applicable, exceeds the amount available to VFCC or any other Purchaser that is a
commercial paper conduit, as applicable, to pay such amount after paying or making provision for
the payment of its Commercial Paper Notes.

          Section 13.12 Protection of Right, Title and Interest in the Purchased Assets; Further
Action Evidencing Transactions.

          (a) The Seller shall cause this Agreement, all amendments hereto and/or all financing
statements and continuation statements and any other necessary documents covering the right, title
and interest of the Deal Agent as agent for the Secured Parties or the Purchaser to the Purchased
Items to be promptly recorded, registered and filed, and at all times to be kept recorded,
registered and filed, all in such manner and in such places as may be required by law fully to
preserve and protect the right, title and interest of the Deal Agent as agent for the Secured
Parties or the Purchaser hereunder to all property comprising the Purchased Items. The Seller
shall deliver to the Deal Agent and the Purchaser file–stamped copies of, or filing receipts for,
any document recorded, registered or filed as provided above, as soon as available following such
recording, registration or filing. The Seller shall execute any and all documents reasonably
required to fulfill the intent of this

 Subsection 13.12(a).

          (b) The Seller agrees that from time to time, at its expense, it will promptly execute and
deliver all instruments and documents, and take all actions, that the Deal Agent and the Purchaser
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reasonably request in order to perfect, protect or more fully evidence the Transactions
hereunder and the security interest granted in the Purchased Items, or to enable the Deal Agent as
agent for the Secured Parties and the Purchaser to exercise and enforce their rights and remedies
hereunder or under any Repurchase Document.

          (c) If the Seller fails to perform any of its obligations hereunder, the Deal Agent or the
Purchaser may (but shall not be required to) perform, or cause performance of, such obligation; and
the Deal Agent’s and/or the Purchaser’s costs and expenses incurred in connection therewith shall
be payable by the Seller. The Seller irrevocably appoints the Deal Agent and the Purchaser as its
attorney–in–fact and authorizes the Deal Agent and the Purchaser to act on behalf of the Seller (i)
to execute on behalf of the Seller as debtor and to file financing statements necessary or
desirable in the Deal Agent’s and the Purchaser’s sole discretion to perfect and to maintain the
perfection and priority of the interest in the Purchased Items, and (ii) to file a carbon,
photographic or other reproduction of this Agreement or any financing statement with respect to the
Purchased Items as a financing statement in such offices as the Deal Agent and the Purchaser in its
sole discretion deems necessary or desirable to perfect and to maintain the perfection and priority
of the interests of the Secured Parties in the Purchased Items. This appointment is coupled with
an interest and is irrevocable.

          (d) Without limiting the generality of the foregoing, the Seller will not earlier than six (6)
months and not later than three (3) months prior to the fifth anniversary of the date of filing of
the financing statement referred to in Subsection 3.1(g) or any other financing statement
filed pursuant to this Agreement or in connection with any Transaction hereunder, unless the
Aggregate Unpaids have been paid in full:

     (i) execute and deliver and file or cause to be filed an appropriate continuation
statement with respect to such financing statement; and

     (ii) deliver or cause to be delivered to the Deal Agent and the Purchaser an opinion of
the counsel for the Seller, in form and substance reasonably satisfactory to the Deal Agent
and the Purchaser, confirming and updating the opinion delivered pursuant to Subsection
3.1(h) with respect to perfection and otherwise to the effect that the security interest
hereunder continues to be an enforceable and perfected security interest, subject to no
other Liens of record except as provided herein or otherwise permitted hereunder, which
opinion may contain usual and customary assumptions, limitations and exceptions.

          Section 13.13 Confidentiality.

          (a) Each of the Deal Agent, the Purchaser, the Secured Parties, the Affected Parties, the
Liquidity Agent, the Custodian, the Seller, the Guarantor, the Pledgor and each Servicer shall
maintain and shall cause each of its employees and officers to maintain the confidentiality of this
Agreement, the other Repurchase Documents and all information with respect to the other parties,
including all information regarding the business of the Seller, the Guarantor and the Pledgor and
their respective businesses obtained by it or them in connection with the structuring, negotiating
and execution of the transactions contemplated herein, except that each such party and its
directors, officers and employees may (i) disclose such information to its external accountants,
attorneys, investors, potential investors and credit enhancers to the Purchaser (including the
directors, officers, external accountants, and attorneys of such credit enhancers) and the agents
or advisors of such Persons (“Excepted Persons”) who have a need to know such information,
provided that each Excepted Person shall be advised by the party disclosing such information of the
confidential nature of the information being disclosed, (ii) disclose the existence of this
Agreement, but not the financial terms thereof, (iii) disclose such information as is required by
Applicable Law and (iv) disclose this Agreement and such information in any suit, action,
proceeding or

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investigation (whether in law or in equity or pursuant to arbitration) involving any of the
Repurchase Documents or any Interest Rate Protection Agreement for the purpose of defending itself,
reducing its liability or protecting or exercising any of its claims, rights, remedies or interests
under or in connection with any of the Repurchase Documents or any Interest Rate Protection
Agreement, provided that the Persons permitted to make such disclosures under clauses (iii)
and (iv) shall also include credit enhancers to the Purchaser. It is understood that the
financial terms that may not be disclosed except in compliance with this Subsection
13.13(a) include, without limitation, all fees and other pricing terms, and all Events of
Default, Servicer Defaults and priority of payment provisions.

          (b) Anything herein to the contrary notwithstanding, the Seller, the Guarantor, the Pledgor
and each Servicer each hereby consents to the disclosure of any nonpublic information with respect
to it (i) to the Deal Agent, the Purchasers, the Liquidity Agent, the Custodian, the Secured
Parties and the Affected Parties by each other, (ii) by the Deal Agent or the Purchasers to any
prospective or actual assignee or participant of any of them or (iii) by the Deal Agent, the
Liquidity Agent or a Purchaser to any Rating Agency, commercial paper dealer or provider of a
surety, guaranty or credit or liquidity enhancement to a Purchaser and to any officers, directors,
employees, outside accountants, advisors and attorneys of any of the foregoing, provided each such
Person is informed of the confidential nature of such information. In addition, the Secured
Parties, the Liquidity Agent, the Purchasers, any credit enhancers to the Purchasers and the Deal
Agent may disclose any such nonpublic information as required pursuant to any law, rule,
regulation, direction, request or order of any judicial, administrative or regulatory authority or
proceedings (whether or not having the force or effect of law).

          (c) Notwithstanding anything herein to the contrary, the foregoing shall not be construed to
prohibit (i) disclosure of any and all information that is or becomes publicly known; (ii)
disclosure of any and all information (A) if required to do so by any Applicable Law, (B) to any
Governmental Authority having or claiming authority to regulate or oversee any respects of the Deal
Agent’s, the Purchaser’s, any Secured Party’s, any Affected Party’s, the Liquidity Agent’s, the
Custodian’s, the Seller’s or the Guarantor’s business or that of their respective Affiliates, (C)
pursuant to any subpoena, civil investigative demand or similar demand or request of any court,
regulatory authority, arbitrator or arbitration to which any of the Deal Agent, the Purchaser, the
Secured Parties, the Affected Parties, the Liquidity Agent, the Custodian, the Seller or the
Guarantor or an officer, director, employer, shareholder, owner, member, partner, agent, employee
or Affiliate of any of the foregoing is a party, (D) in any preliminary or final offering circular,
registration statement or contract or other document approved in writing in advance by the Seller
and the Guarantor, or (E) to any Affiliate, independent or internal auditor, agent, employee or
attorney of the Custodian having a need to know the same, provided that the Custodian advises such
recipient of the confidential nature of the information being disclosed and such Person agrees to
be bound by the confidentiality provisions set forth herein; or (iii) any other disclosure
authorized by the Purchaser, the Seller or the Guarantor, as applicable.

          (d) Notwithstanding anything to the contrary contained herein, the Repurchase Documents or in
any related document, all Persons may disclose to any and all Persons, without limitation of any
kind, the federal income tax treatment of any of the transactions contemplated by this Agreement,
the Repurchase Documents or any other related document, any fact relevant to understanding the
federal tax treatment of such transactions and all materials of any kind (including opinions or
other tax analyses) relating to such federal income tax treatment.

          Section 13.14 Execution in Counterparts; Severability; Integration.

          This Agreement may be executed in any number of counterparts and by different parties hereto
in separate counterparts (including by facsimile), each of which when so executed shall be deemed
to be an original and all of which when taken together shall constitute one and the same agreement.
In case any

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provision in or obligation under this Agreement shall be invalid, illegal or unenforceable in
any jurisdiction, the validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be
affected or impaired thereby. This Agreement and any other Repurchase Document executed in
connection herewith contain the final and complete integration of all prior expressions by the
parties hereto and thereto with respect to the subject matter hereof and thereof and shall
constitute the entire agreement among the parties hereto and thereto with respect to the subject
matter hereof and thereof, superseding all prior oral or written understandings.

          Section 13.15 Seller’s Waiver of Setoff.

          Each of the parties hereto (other than VFCC and any Affected Party) hereby waives any right of
setoff it may have or to which it may be entitled under this Agreement from time to time against
VFCC and any Affected Party or their assets.

          Section 13.16 Assignments and Participations; Hypothecation of Purchased Assets.

          (a) Neither the Seller nor the Guarantor may assign, delegate, grant any interest in, permit
any Lien to exist on or otherwise transfer in any way any of its rights, duties, covenants or
obligations under this Agreement or the other Repurchase Documents without the prior written
consent of the Deal Agent in its discretion and any attempt by the Seller or the Guarantor to do
any of the foregoing without the prior written consent of the Deal Agent in its discretion shall be
null and void. The Deal Agent, the Purchaser and any Secured Party may sell, transfer, assign,
pledge or grant participation interests to any Person in all or any portion of any Transaction, its
interest in all or any portion of any Purchased Assets and/or any other interest of the Purchaser
or any Secured Party under this Agreement and the other Repurchase Documents (any such entity, a
“Transferee”), provided that (i) the Deal Agent shall give concurrent notice to the Seller
of any assignment (the failure to give such notice, however, shall not affect the validity or
enforceability of such assignment) and (ii) any assignment effected pursuant to this Subsection
13.16(a) shall be in respect of Purchased Assets with a minimum Purchase Price of $5,000,000
(other than in the case of (x) an assignment of all of the interests then held by the Purchaser or
a Secured Party (or a Transferee), (y) a transfer to an Affiliate of the Purchaser, a Secured Party
or a Transferee, or (z) an Event of Default). Each of the Seller and the Guarantor agrees to
cooperate with the Deal Agent, the Purchaser and each Secured Party in connection with any such
assignment, transfer, pledge, participation or sale, and to enter into such restatements of, and
amendments, supplements and other modifications to, this Agreement, in order to give effect to such
assignment, transfer, pledge, participation or sale. The parties to any such transfer, assignment,
pledge or participation shall execute and deliver to the Deal Agent, for its acceptance and
recording in its books and records, such agreement as shall be satisfactory to such parties and the
Deal Agent.

          (b) The Purchaser or its designee shall have free and unrestricted use of all Purchased Assets
and nothing in this Agreement shall preclude the Purchaser or its designee from engaging in
repurchase transactions with the Purchased Assets or otherwise pledging, transferring,
hypothecating, or rehypothecating the Purchased Assets; provided, however, that the
Purchaser or its designee shall transfer the Purchased Assets to the Seller on the applicable
Repurchase Date free and clear of any Lien on any of the Purchased Assets. Nothing contained in
this Agreement shall obligate the Purchaser or any Secured Party to segregate any Purchased Assets
transferred to the Purchaser or its designee by the Seller.

          Section 13.17 Heading and Exhibits.

          The headings herein are for purposes of references only and shall not otherwise affect the
meaning or interpretation of any provision hereof. The schedules and exhibits attached hereto and

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referred to herein shall constitute a part of this Agreement and are incorporated into this
Agreement for all purposes.

          Section 13.18 Single Agreements.

          The Deal Agent, the Purchaser, the Seller and the Guarantor acknowledge that, and have entered
hereinto and will enter into each Transaction hereunder in consideration of and in reliance upon
the fact that all Transactions hereunder constitute a single business and contractual relationship
and that each has been entered into in consideration of the other Transactions. Accordingly, each
of the Purchaser, the Seller and the Guarantor (i) agrees to perform all of its obligations in
respect of each Transaction hereunder, and that a default in the performance of any such
obligations shall constitute a default by it in respect of all Transactions hereunder, and (ii)
that payments, deliveries and other transfers made by it or others on its behalf in respect of any
Transaction shall be deemed to have been made in consideration of payments, deliveries and other
transfers in respect of any other Transactions hereunder, and the obligations to make any such
payments, deliveries and other transfers may be applied against each other and netted.

          Section 13.19 Disclosure Relating to Certain Federal Protections.

          The parties acknowledge that they have been advised that:

          (a) in the case of Transactions in which one of the parties is a broker or dealer registered
with the Securities and Exchange Commission (“SEC”) under Section 15 of the Exchange Act,
the Securities Investor Protection Corporation has taken the position that the provisions of the
Securities Investor Protection Act of 1970 (“SIPA”) will not provide protection to the
other parties with respect to any Transaction hereunder;

          (b) in the case of Transactions in which one of the parties is a government securities broker
or a government securities dealer registered with the SEC under Section 15C of the Exchange Act,
SIPA will not provide protection to the other parties with respect to any Transaction hereunder;

          (c) in the case of Transactions in which one of the parties is a financial institution, funds
held by the financial institution pursuant to a Transaction hereunder are not a deposit and
therefore are not insured by the Federal Deposit Insurance Corporation or the National Credit Union
Share Insurance Fund, as applicable; and

          (d) in the case of Transactions in which one of the parties is an “insured depository
institution” as that term is defined in Section 1813(c)(2) of Title 12 of the United States Code,
funds held by the financial institution pursuant to a Transaction hereunder are not a deposit and
therefore are not insured by the Federal Deposit Insurance Corporation, the Savings Association
Insurance Fund or the Bank Insurance Fund, as applicable.

          Section 13.20 Intent.

          (a) The parties recognize that each Transaction is a “Repurchase Agreement” as that
term is defined in Section 101 of Title 11 of the United States Code, as amended (except insofar as
the type of Purchased Assets subject to such Transaction or the term of such Transaction would
render such definition inapplicable) and a “Securities Contract” as that term is defined in
Section 741 of Title 11 of the United States Code, as amended (except insofar as the type of
Purchased Assets subject to such Transaction would render such definition inapplicable).

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          (b) The parties agree and acknowledge that if a party hereto is an “Insured Depository
Institution,” as such term is defined in the Federal Deposit Insurance Act, as amended
(“FDIA”), then each Transaction hereunder is a “Qualified Financial Contract,” as
that term is defined in FDIA and any rules, orders or policy statements thereunder (except insofar
as the type of Purchased Assets subject to such Transaction would render such definition
inapplicable).

          (c) It is understood and agreed that this Agreement constitutes a “Master Netting Agreement”
as that term is defined in Section 101 of Title 11 of the United States Code.

          (d) It is understood that this Agreement constitutes a “Netting Contract” as defined
in and subject to Title IV of the Federal Deposit Insurance Corporation Improvement Act of 1991
(“FDICIA”) and each payment entitlement and payment obligation under any Transaction
hereunder shall constitute a “Covered Contractual Payment Entitlement” or “Covered
Contractual Payment Obligation”, respectively, as defined in and subject to FDICIA (except
insofar as one or both of the parties is not a “Financial Institution” as that term is
defined in FDICIA or regulations promulgated thereunder).

          (e) It is understood that any party’s right to liquidate Purchased Assets delivered to it in
connection with Transactions hereunder or to exercise any other remedies pursuant to Section
10.2 is a contractual right to liquidate such Transaction as described in Sections 555, 559 and
561 of Title 11 of the United States Code, as amended.

          Section 13.21 Periodic Due Diligence Review.

          Each of the Seller and the Guarantor acknowledge that each of the Deal Agent, the Purchaser
and the other Secured Parties has the right to perform continuing due diligence reviews with
respect to the Purchased Items and the Seller and the Guarantor for purposes of verifying
compliance with the representations, warranties, covenants, agreements and specifications made
hereunder, under the Repurchase Documents or otherwise, and each of the Seller and the Guarantor
agrees that upon reasonable (but no less than one (1) Business Day’s) prior notice, unless an Event
of Default shall have occurred, in which case no notice is required, to the Seller or the
Guarantor, as applicable, the Deal Agent, the Purchaser and the other Secured Parties or any
authorized representatives shall be permitted during normal business hours to examine, inspect, and
make copies and extracts of, the books and records of the Seller and the Guarantor, the Mortgage
Asset Files and any and all documents, records, agreements, instruments or information relating to
such Purchased Items in the possession or under the control of the Seller, the Guarantor and/or the
Custodian. Each of the Seller and the Guarantor also shall make available to the Deal Agent, the
Purchaser and the other Secured Parties a knowledgeable financial or accounting officer for the
purpose of answering questions respecting the Seller, the Guarantor, the Mortgage Asset Files and
the Purchased Items. Each of the Seller and the Guarantor shall also make available to the Deal
Agent, the Purchaser and the other Secured Parties any accountants or auditors of the Seller or the
Guarantor to answer any questions or provide any documents as the Deal Agent, the Purchaser or any
other Secured Party may require. The Seller will also cause each of the Servicers and PSA
Servicers (to the extent permitted under the applicable Pooling and Servicing Agreement) to
cooperate with the Deal Agent, the Purchaser and the other Secured Parties by permitting the Deal
Agent, the Purchaser and the other Secured Parties to conduct due diligence reviews of files of
each such Servicer and PSA Servicer. Without limiting the generality of the foregoing, the Seller
acknowledges that the Purchaser or its designee may purchase Purchased Items from the Seller based
solely upon the information provided by the Seller to the Deal Agent in the Seller Asset Schedule
and the representations, warranties and covenants contained herein, and that the Deal Agent, the
Purchaser and the other Secured Parties, at their option, have the right at any time to conduct a
partial or complete due diligence review on some or all of the Purchased Items purchased in a
Transaction, including, without limitation, ordering new credit reports and new appraisals on the
related Mortgaged Properties and otherwise re–generating

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the information used to originate such Purchased Assets. The Deal Agent, the Purchaser and
the other Secured Parties may underwrite such Purchased Assets itself or engage a mutually agreed
upon third party underwriter to perform such underwriting. Each of the Seller and the Guarantor
agrees to cooperate with the Deal Agent, the Purchaser and the other Secured Parties and any third
party underwriter in connection with such underwriting, including, but not limited to, providing
the Deal Agent, the Purchaser and the other Secured Parties and any third party underwriter with
access to any and all documents, records, agreements, instruments or information relating to such
Purchased Assets in the possession, or under the control, of the Seller or the Guarantor. The
Purchaser shall pay all out–of–pocket costs and expenses incurred by the Deal Agent, the Purchaser
and the other Secured Parties in connection with the Deal Agent’s, the Purchaser’s and the other
Secured Parties’ activities pursuant to this Section 13.21 (“Due Diligence Costs”);
provided that, in the event that a Default or Event of Default shall have occurred, the
Seller shall reimburse the Deal Agent, the Purchaser and the other Secured Parties for all Due
Diligence Costs incurred by any such Person from and after the date of such Default or Event of
Default in connection with such Person’s activities pursuant to this Section 13.21.

          Section 13.22 Use of Employee Plan Assets.

          (a) If assets of an employee benefit plan subject to any provision ERISA are intended to be
used by either party hereto (the “Plan Party”) in a Transaction, the Plan Party shall so
notify the Deal Agent prior to the Transaction. The Plan Party shall represent in writing to the
Deal Agent that the Transaction does not constitute a prohibited transaction under ERISA or is
otherwise exempt therefrom, and the Deal Agent may proceed in reliance thereon but shall not be
required so to proceed.

          (b) Subject to the last sentence of Subsection 13.22(a) above, any such Transaction
shall proceed only if the Plan Party furnishes or has furnished to the Deal Agent its most recent
available audited statement of its financial condition and its most recent subsequent unaudited
statement of its financial condition.

          (c) By entering into a Transaction pursuant to this Section 13.22, the Seller shall be
deemed (i) to represent to the Deal Agent that since the date of the Seller’s latest such financial
statements, there has been no material adverse change in the Seller’s financial condition which
Seller has not disclosed to the Deal Agent, and (ii) to agree to provide the Deal Agent with future
audited and unaudited statements of its financial condition as they are issued, so long as it is a
Seller in any outstanding Transaction involving a Plan Party.

          (d) In consideration of the amendments and modifications set forth in this Agreement and the
amendments and modifications to the other Repurchase Documents, each of the Seller and Guarantor
releases and holds harmless the Deal Agent, the Purchaser, each Secured Party and their officers,
employees, agents and Affiliates from and against any claim, action, suit, demand, cost, expense or
liability of any kind relating to this Agreement and the other Repurchase Documents, the Purchased
Assets, the Transactions, the administration of this Agreement and the other Repurchase Documents,
the Purchased Assets or any Transaction or any business communications and dealings among the
Seller, the Guarantor, the Deal Agent, the Purchaser and/or any Secured Party concerning this
Agreement and the other Repurchase Documents, the Purchased Assets or any Transaction through the
date of execution hereof.

          Section 13.23 No Proceedings.

          Each of the Seller, the Guarantor and the Pledgor hereby agrees that it will not institute
against, or join any other Person in instituting against, VFCC, the Deal Agent, any other Purchaser
or any Secured Party any Insolvency Proceeding so long as any commercial paper issued by VFCC or
any other

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Purchaser shall be outstanding and there shall not have elapsed one (1) year and one (1) day
since the last day on which any such commercial paper shall have been outstanding.

          Section 13.24 Joint and Several Obligations.

          (a) At all times during which there is more than one (1) Seller under the Repurchase
Documents, the liability of each Seller shall be joint and several and the joint and several
obligations of each Seller under the Repurchase Documents (a) (i) shall be absolute and
unconditional and shall remain in full force and effect (or be reinstated) until all the
Obligations shall have been paid in full and the expiration of any applicable preference or similar
period pursuant to any bankruptcy, insolvency, reorganization, moratorium or similar law, or at law
or in equity, without any claim having been made before the expiration of such period asserting an
interest in all or any part of any payment(s) received by the Deal Agent as agent for the Secured
Parties, and (ii) until such payment has been made, shall not be discharged, affected, modified or
impaired on the happening from time to time of any event, including, without limitation, any of the
following, whether or not with notice to or the consent of any Seller, any Guarantor or the
Pledgor, (A) the waiver, compromise, settlement, release, termination or amendment (including,
without limitation, any extension or postponement of the time for payment or performance or renewal
or refinancing) of any or all of the obligations or agreements of any Seller, any Guarantor or the
Pledgor under this Agreement or any Repurchase Document, (B) the failure to give notice to any
Seller, any Guarantor or the Pledgor of the occurrence of an Event of Default under any of the
Repurchase Documents, (C) the release, substitution or exchange by the Deal Agent as agent for the
Secured Parties of any or all of the Purchased Items or the Equity Interests (in each case, whether
with or without consideration) or the acceptance by the Deal Agent as agent for the Secured Parties
of any additional collateral or the availability or claimed availability of any other collateral or
source of repayment or any nonperfection or other impairment of collateral, (D) the release of any
Person primarily or secondarily liable for all or any part of the Obligations, whether by the Deal
Agent as agent for the Secured Parties or in connection with any voluntary or involuntary
liquidation, dissolution, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors or similar event or proceeding affecting any or all Sellers, any or all Guarantors, the
Pledgor or any other Person who, or any of whose Property, shall at the time in question be
obligated in respect of the Obligations or any part thereof, or (E) to the extent permitted by
Applicable Law, any other event, occurrence, action or circumstance that would, in the absence of
this Section 13.24, result in the release or discharge of any or all of the Sellers from
the performance or observance of any obligation, covenant or agreement contained in the Repurchase
Documents; (b) each Seller expressly agrees that the Deal Agent as agent for the Secured Parties
shall not be required first to initiate any suit or to exhaust its remedies against any Seller, any
Guarantor, the Pledgor or any other Person to become liable, or against any of the Purchased Items
or the Equity Interests, in order to enforce the Repurchase Documents and each Seller expressly
agrees that, notwithstanding the occurrence of any of the foregoing, each Seller shall be and
remain directly and primarily liable for all sums due under this Agreement or any of the Repurchase
Documents, as and to the extent limited by the Repurchase Documents; and, (c) on disposition by the
Deal Agent as agent for the Secured Parties of any Property encumbered by any Purchased Items, each
Seller shall be and shall remain jointly and severally liable for any deficiency, as and to the
extent limited by the Repurchase Documents.

          (b) Each Seller hereby agrees that, to the extent another Seller shall have paid more than its
proportionate share of any payment made hereunder, the Seller shall be entitled to seek and receive
contribution from and against any other Seller which has not paid its proportionate share of such
payment; provided, however, that the provisions of this Section 13.24 shall
in no respect limit the obligations and liabilities of any Seller to the Deal Agent, the Purchaser
or any Secured Party, and, notwithstanding any payment or payments made by any Seller (the
“paying Seller”) hereunder or any set–off or application of funds of the paying Seller by
the Deal Agent on behalf of the Secured Parties, the paying Seller shall not be entitled to be
subrogated to any of the rights of the Deal Agent, the Purchaser or any Secured Party against any
other Seller or any collateral security or guarantee or right of offset held by the Deal Agent,

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the Purchaser or any Secured Party, nor shall the paying Seller seek or be entitled to seek
any contribution or reimbursement from the other Seller in respect of payments made by the paying
Seller hereunder, until all amounts owing to the Deal Agent, the Purchaser or any Secured Party by
the Seller under the Repurchase Documents are paid in full. If any amount shall be paid to the
paying Seller on account of such subrogation rights at any time when all such amounts shall not
have been paid in full, such amount shall be held by the paying Seller in trust for the Deal Agent
on behalf of the Secured Parties, segregated from other funds of the paying Seller, and shall,
forthwith upon receipt by the paying Seller, be turned over to the Deal Agent on behalf of the
Secured Parties in the exact form received by the paying Seller (duly indorsed by the paying Seller
to the Deal Agent on behalf of the Secured Parties, if required), to be applied against amounts
owing to the Deal Agent, the Purchaser and the other Secured Parties by the Seller under the
Repurchase Documents, whether matured or unmatured, in such order as the Deal Agent may determine
in its discretion.

          Section 13.25 Third Party Beneficiary.

          Each Secured Party (to the extent it is not otherwise a party hereto) is an intended third
party beneficiary of this Agreement entitled to enforce this Agreement to the same extent as though
it were a party hereto.

[Remainder of Page Intentionally Left Blank.]

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

	 	 	 	 	 	 	 
	THE SELLER:	 	ARBOR REALTY FUNDING LLC
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ John Natalone
	 
	 	 	 	 	 	 
	 
	 	Name:	 	John Natalone
	 

	 	 	 	 	 	 
	 
	 	Title:	 	Senior Vice President,
Treasurer
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Arbor Realty Funding LLC
	 	 	c/o Arbor Commercial Mortgage LLC

333 Earle Ovington Boulevard

Uniondale, New York 11553
	 	 	Attention: Guy Milone, Esq.

Facsimile No.: (516) 832–6431

Confirmation No.: (516) 832–7431

[Signatures Continued on the Following Page]

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	THE SELLER (cont.):	 	ARBOR REALTY LIMITED PARTNERSHIP,

a Delaware Limited Partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Arbor Realty GPOP, Inc., its General Partner
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	By:	 	/s/ Paul Elenio
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Paul Elenio	 	 
	 

	 	 	 	Title:
	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Arbor Realty Limited Partnership

c/o Arbor Commercial Mortgage LLC

333 Earle Ovington Boulevard

Uniondale, New York 11553

Attention: Guy Milone, Esq.

Facsimile No.: (516) 832–6431	 	 

[Signatures Continued on the Following Page]

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	THE SELLER (cont.):	 	ARSR TAHOE, LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ John Natalone	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	John Natalone 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Senior Vice President, Treasurer 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ARSR Tahoe, LLC

c/o Arbor Commercial Mortgage LLC

333 Earle Ovington Boulevard

Uniondale, New York 11553

Attention: Guy Milone, Esq.

Facsimile No.: (516) 832–6431

Confirmation No.: (516) 832–7431

[Signatures Continued on the Following Page]

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	THE PURCHASERS:	 	VARIABLE FUNDING CAPITAL COMPANY LLC,

as a Purchaser	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	Wachovia Capital Markets, LLC,

as attorney–in–fact	 	 	 	 
	 

	 	By:	 	/s/ Douglas R. Wilson, Sr.	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Name:	 	Douglas R. Wilson, Sr. 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Title:	 	Director 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Variable Funding Capital Company LLC

c/o Wachovia Capital Markets, LLC

301 South College Street, TW10

Charlotte, North Carolina 28288

Attention: Conduit Administration

Facsimile No.: (704) 383–9579

Confirmation No.: (704) 374–2520	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	with a copy to:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Wachovia Capital Markets, LLC

301 South College Street, NC0166

Charlotte, North Carolina 28288

Attention: Marianne Hickman

Facsimile No.: (704) 715–0066

Confirmation No.: (704) 715–7818	 	 
	 
	 	 	 	 	 	 	 	 
	With respect to notices required pursuant to Section 13.1, a copy of notices sent to VFCC
shall be sent to:
	 
	 	 	 	 	 	 	 	 
	 	 	Lord Securities Corp.

2 Wall Street, 19th Floor

New York, New York 10005

Attention: Vice President

Facsimile No.: (212) 346–9012

Confirmation No.: (212) 346–9008	 	 

[Signatures Continued on the Following Page]

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	THE PURCHASERS (cont.):	 	WACHOVIA BANK, NATIONAL ASSOCIATION,

as the Swingline Purchaser
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Steve Hall	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Steve Hall	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Director	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Wachovia Bank, National Association

One Wachovia Center, NC0166

301 South College Street

Charlotte, North Carolina 28288

Attention: Marianne Hickman

Facsimile No.: (704) 715–0066

Confirmation No.: (704) 383–2324

[Signatures Continued on the Following Page]

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	THE DEAL AGENT:	 	WACHOVIA CAPITAL MARKETS, LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Steve Hall	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Steve Hall	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Director	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Wachovia Capital Markets, LLC

301 South College Street, NC0166

Charlotte, North Carolina 28288

Attention: Marianne Hickman

Facsimile No.: (704) 715–0066

Confirmation No.: (704) 715–7818

[Signatures Continued on the Following Page]

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	THE GUARANTORS:	 	ARBOR REALTY TRUST, INC., 

a Maryland corporation
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ John Natalone	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	       John Natalone	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 Senior Vice President, Treasurer	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Arbor Realty Trust, Inc.

c/o Arbor Commercial Mortgage LLC

333 Earle Ovington Boulevard

Uniondale, New York 11553

Attention: Guy Milone, Esq.

Facsimile No.: (516) 832–6431

Confirmation No.: (516) 832–7431

[Signatures Continued on the Following Page]

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	THE GUARANTORS (cont.):	 	ARBOR REALTY LIMITED PARTNERSHIP,

a Delaware Limited Partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Arbor Realty GPOP, Inc., its General Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 /s/ Paul Elenio	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Paul Elenio	 	 
	 

	 	 	 	Title:
	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Arbor Realty Limited Partnership

c/o Arbor Commercial Mortgage LLC

333 Earle Ovington Boulevard

Uniondale, New York 11553

Attention: Guy Milone, Esq.

Facsimile No.: (516) 832–6431	 	 

[Signatures Continued on the Following Page]

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	THE GUARANTORS (cont.):	 	ARBOR REALTY SR, INC., 

a Maryland corporation
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  John Natalone	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	John Natalone	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Senior Vice President, Treasurer	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Arbor Realty Trust, Inc.

c/o Arbor Commercial Mortgage LLC

333 Earle Ovington Boulevard

Uniondale, New York 11553

Attention: Guy Milone, Esq.

Facsimile No.: (516) 832–6431

Confirmation No.: (516) 832–7431

[Signatures Continued on the Following Page]

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Arbor Realty hereby confirms that the Pledge Agreement is binding and enforceable and is in full
force and effect, as modified by this Agreement.

	 	 	 	 	 	 	 
	THE PLEDGOR:	 	ARBOR REALTY TRUST, INC., 

a Maryland corporation
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  John Natalone	 	 
	 

	 	 	 	 	 	 
	 

	 	Name: 	 	John Natalone	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Senior Vice President,
Treasurer	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Arbor Realty Trust, Inc.

c/o Arbor Commercial Mortgage LLC

333 Earle Ovington Boulevard

Uniondale, New York 11553

Attention: Guy Milone, Esq.

Facsimile No.: (516) 832–6431

Confirmation No.: (516) 832–7431

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