Document:

exv10w68

 

Exhibit 10.68

	 	 	 
	Section:
	 	11
	Block:
	 	3033
	Lots:
	 	9 and 12
	County:
	 	Bronx
	Premises:
	 	2502 Webster Avenue, 2504 Webster Avenue, and 400 — 414 East Fordham Road, a/k/a
	 
	 	4747-4763 Park Avenue, a/k/a 2506-2526 Webster Avenue, Bronx, New York

 

 

BUILDING LOAN AGREEMENT

Between

ACADIA-PA EAST FORDHAM ACQUISITIONS, LLC,

a Delaware limited liability company

as Lead Borrower,

ACADIA-PA EAST FORDHAM ACQUISITIONS, LLC,

a Delaware limited liability company

FORDHAM PLACE OFFICE, LLC

a Delaware limited liability company

as Borrower,

The LENDERS Party Hereto,

as Lenders

and

EUROHYPO AG, NEW YORK BRANCH

as Administrative Agent

Date: As of October 5, 2007

 

 

This Agreement was prepared by:

RIEMER & BRAUNSTEIN LLP

Times Square Tower, Suite 2506

Seven Times Square

New York, New York 10036

Attention: Steven J. Weinstein, Esq.

 

 

TABLE OF CONTENTS

Page

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 1 CERTAIN DEFINITIONS	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 1.1
	 	Certain Definitions
	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 2 LOAN TERMS	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 2.1
	 	The Commitments, Loans and Notes
	 	 	8	 
	 

	 	Section 2.2
	 	Conversion or Continuations of Building Loans
	 	 	9	 
	 

	 	Section 2.3
	 	Interest Rate; Late Charge
	 	 	9	 
	 

	 	Section 2.4
	 	Terms of Payment
	 	 	9	 
	 

	 	Section 2.5
	 	Extension of Maturity Date
	 	 	10	 
	 

	 	Section 2.6
	 	Payments; Pro Rata Treatment; Etc
	 	 	10	 
	 

	 	Section 2.7
	 	Yield Protection; Etc
	 	 	10	 
	 

	 	Section 2.8
	 	Agency Fee
	 	 	10	 
	 

	 	Section 2.9
	 	Exit Fee
	 	 	10	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 3 INSURANCE, CONDEMNATION, AND IMPOUNDS	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 3.1
	 	Insurance, Condemnation, Impounds
	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 4 DISBURSEMENTS OF THE BUILDING LOANS	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 4.1
	 	General Conditions
	 	 	11	 
	 

	 	Section 4.2
	 	Procedure for Making Disbursements of Building Loan Proceeds
	 	 	12	 
	 

	 	Section 4.3
	 	Retainage
	 	 	13	 
	 

	 	Section 4.4
	 	Stored Materials
	 	 	14	 
	 

	 	Section 4.5
	 	Tenant Improvement Work
	 	 	15	 
	 

	 	Section 4.6
	 	Unsatisfactory Work
	 	 	18	 
	 

	 	Section 4.7
	 	Direct Loan Advances by Administrative Agent
	 	 	18	 
	 

	 	Section 4.8
	 	No Waiver or Approval by Reason of Loan Advances
	 	 	19	 
	 

	 	Section 4.9
	 	Construction Consultant
	 	 	19	 
	 

	 	Section 4.10
	 	Authorization to Make Loan Advances to Cure Borrower’s Defaults
	 	 	19	 
	 

	 	Section 4.11
	 	Reserved
	 	 	20	 
	 

	 	Section 4.12
	 	Administrative Agent’s Right to Make Loan Advances in
Compliance with the Guaranty of Completion
	 	 	20	 
	 

	 	Section 4.13
	 	No Third-Party Benefit
	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 5 ENVIRONMENTAL MATTERS	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 6 LEASING MATTERS	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 7 REPRESENTATIONS AND WARRANTIES	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 7.1
	 	Cost of Improvement
	 	 	21	 
	 

	 	Section 7.2
	 	Design Professionals’ Certificates
	 	 	21	 
	 

	 	Section 7.3
	 	Tenant Improvement Work
	 	 	21	 

i

 

Page

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 8 FINANCIAL REPORTING	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 9 COVENANTS	 	 	22	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 9.1
	 	Payment for Labor and Materials
	 	 	22	 
	 

	 	Section 9.2
	 	Inspection
	 	 	22	 
	 

	 	Section 9.3
	 	Project Construction and Completion
	 	 	23	 
	 

	 	Section 9.4
	 	Proceedings to Enjoin or Prevent Construction
	 	 	25	 
	 

	 	Section 9.5
	 	Agent’s, Lenders’ and Construction Consultant’s Actions for
their Own Protection Only
	 	 	25	 
	 

	 	Section 9.6
	 	Sign and Publicity 	 	 	26	 
	 

	 	Section 9.7
	 	Amendment of Project Documents and Government Approvals; Change Orders
	 	 	26	 
	 

	 	Section 9.8
	 	Lien Law
	 	 	28	 
	 

	 	Section 9.9
	 	Reimbursement of Expenses
	 	 	28	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 10 EVENTS OF DEFAULT	 	 	28	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 10.1
	 	Project Loan Agreement
	 	 	28	 
	 

	 	Section 10.2
	 	Access to Project
	 	 	28	 
	 

	 	Section 10.3
	 	Termination/Bankruptcy of Construction Manager or a Major Contractor
	 	 	29	 
	 

	 	Section 10.4
	 	Unsatisfactory Work
	 	 	29	 
	 

	 	Section 10.5
	 	Construction Work
	 	 	29	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 11 REMEDIES	 	 	29	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 12 MISCELLANEOUS	 	 	30	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 12.1
	 	Notices
	 	 	30	 
	 

	 	Section 12.2
	 	Amendments, Waivers, Etc
	 	 	30	 
	 

	 	Section 12.3
	 	Compliance with Usury Laws
	 	 	30	 
	 

	 	Section 12.4
	 	Invalid Provisions
	 	 	31	 
	 

	 	Section 12.5
	 	Approvals; Third Parties; Conditions
	 	 	31	 
	 

	 	Section 12.6
	 	Lenders and Administrative Agent Not in Control; No Partnership.
	 	 	31	 
	 

	 	Section 12.7
	 	Time of the Essence
	 	 	32	 
	 

	 	Section 12.8
	 	Successors and Assigns
	 	 	32	 
	 

	 	Section 12.9
	 	Renewal, Extension or Rearrangement.
	 	 	32	 
	 

	 	Section 12.10
	 	Waivers
	 	 	32	 
	 

	 	Section 12.11
	 	Cumulative Rights
	 	 	32	 
	 

	 	Section 12.12
	 	Singular and Plural
	 	 	33	 
	 

	 	Section 12.13
	 	Phrases
	 	 	33	 
	 

	 	Section 12.14
	 	Exhibits and Schedules
	 	 	33	 
	 

	 	Section 12.15
	 	Titles of Articles, Sections and Subsections
	 	 	33	 
	 

	 	Section 12.16
	 	Promotional Material
	 	 	33	 
	 

	 	Section 12.17
	 	Survival
	 	 	34	 
	 

	 	Section 12.18
	 	WAIVER OF JURY TRIAL
	 	 	34	 
	 

	 	Section 12.19
	 	Remedies of Borrower
	 	 	34	 
	 

	 	Section 12.20
	 	Governing Law
	 	 	35	 
	 

	 	Section 12.21
	 	Entire Agreement
	 	 	35	 

ii

 

Page

	 	 	 	 	 	 	 	 	 
	 

	 	Section 12.22
	 	Counterparts
	 	 	35	 
	 

	 	Section 12.23
	 	Assignments and Participations by the Lenders
	 	 	35	 
	 

	 	Section 12.24
	 	Brokers
	 	 	35	 
	 

	 	Section 12.25
	 	Right of Set-off
	 	 	35	 
	 

	 	Section 12.26
	 	Limitation on Liability of Administrative Agent’s and the
Lenders’ Officers, Employees, etc
	 	 	36	 
	 

	 	Section 12.27
	 	Cooperation with Syndication
	 	 	36	 
	 

	 	Section 12.28
	 	Severance of Loan
	 	 	36	 
	 

	 	Section 12.29
	 	Confidentiality
	 	 	36	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 13 RECOURSE LIABILITY	 	 	36	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 13.1
	 	Recourse Liability.
	 	 	36	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 14 ADMINISTRATIVE AGENT	 	 	36	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 14.1
	 	Appointment, Powers and Immunities
	 	 	36	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 15 CASH MANAGEMENT	 	 	37	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 15.1
	 	Cash Management
	 	 	37	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 16 CONTROLLED ACCOUNTS	 	 	37	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Section 16.1
	 	Controlled Accounts
	 	 	37	 

iii

 

LIST OF EXHIBITS AND SCHEDULES

	 	 	 
	Schedule 1

	 	Commitments
	Schedule 1.1(37)

	 	Plans and Specifications
	Schedule 1.1(41)

	 	Project Documents
	Schedule 4

	 	Advance Conditions
	Schedule 7.3

	 	Tenant Improvement Work
	Exhibit A

	 	Legal Description of Project
	Exhibit B

	 	Form of Section 22 Affidavit

iv

 

BUILDING LOAN AGREEMENT

     BUILDING LOAN AGREEMENT is entered into as of October 4, 2007 among ACADIA-PA EAST FORDHAM
ACQUISITIONS, LLC, a limited liability company duly organized and validly existing under the laws
of the State of Delaware (“Lead Borrower”); FORDHAM PLACE OFFICE, LLC, a limited liability
company duly organized and validly existing under the laws of the State of Delaware (“Fordham
Office”, hereinafter, jointly and severally with Lead Borrower, and singly and collectively,
“Borrower”) each of the lenders that is a signatory hereto identified under the caption
“LENDERS” on the signature pages hereof and each lender that becomes a “Lender” after the date
hereof pursuant to Section 12.23 (individually, a “Lender” and, collectively, the
“Lenders”); and EUROHYPO AG, NEW YORK BRANCH, as administrative agent for the Lenders (in
such capacity, together with its successors in such capacity, the “Administrative Agent”).

RECITALS

     A. Lead Borrower is the fee owner of that certain tract of land located in the County of
Bronx, State of New York and being more fully described in Exhibit A attached hereto (the
“Land”) and the improvement currently located thereon.

     B. Borrower proposes to renovate, alter, improve, install and construct the Improvements (as
hereinafter defined) on the Land and, in connection therewith has requested and applied to the
Lenders for a loan in the amount of $75,339,243.00 (the “Total Building Loan Commitment”)
for the purposes of paying certain of the Cost of Improvement pertaining to the Project (as
hereinafter defined) including certain costs with respect to the construction and equipping of the
Improvements, all of which said costs constitute a Cost of Improvement (as hereinafter defined).
The Lenders have agreed to make such loans on and subject to the terms and conditions hereinafter
set forth.

     C. Borrower has also requested and applied to the Lenders for (i) a loan in the amount of
$18,000,000.00 for the purpose of re-financing the acquisition of its interest in the Land and (ii)
a loan in the amount of $1,930,757.00 for the purpose of paying certain costs pertaining to the
Premises, which costs do not constitute a Cost of Improvement. The Lenders have agreed to make
such loans pursuant to the Acquisition and Project Loan Agreement, of even date herewith, entered
into by Borrower, the Lenders and Administrative Agent (the “Project Loan Agreement”).

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:

1

 

ARTICLE 1

CERTAIN DEFINITIONS

Section 1.1 Certain Definitions.

     Unless separately defined in this Agreement, all capitalized terms used herein shall have the
meaning assigned to such terms in the Project Loan Agreement. In addition, as used herein, the
following terms have the meanings indicated:

     (1) “Administrative Agent” has the meaning assigned in the Preamble.

     (2) “Agreement” means this Building Loan Agreement, as the same may be modified,
amended and/or supplemented and in effect from time to time.

     (3) “Borrower” has the meaning assigned in the Preamble. With respect to the
definition of “Borrower”, except where the context otherwise provides, (i) any representations
contained herein of Borrower shall be applicable to each Borrower, (ii) any affirmative covenants
contained herein shall be deemed to be covenants of each Borrower and shall require performance by
all Borrowers, (iii) any negative covenants contained herein shall be deemed to be covenants of
each Borrower, and shall be breached if any Borrower fails to comply therewith, (iv) the occurrence
of any Event of Default with respect to any Borrower shall be deemed to be an Event of Default
hereunder, and (v) any Indebtedness and/or obligations of Borrower shall be deemed to include any
Indebtedness and/or obligations of the Borrowers, or any Indebtedness and/or obligations of any one
of them.

     (4) “Borrower’s Architect” means Greenberg Farrow Architects, or any replacement
thereof approved by Administrative Agent.

     (5) “Borrower’s Architect’s Agreement” means that certain agreement entitled
Professional Service Fee Proposals, dated as of March 30, 2005, July 11, 2005 and August 1, 2005,
between Borrower, as owner, and Borrower’s Architect, as architect, as the same may be amended.

     (6) “Building Loan” and “Building Loans” have the meanings assigned in Section
2.1(1) means the loans to be made by the Lenders to Borrower under this Agreement and all other
amounts evidenced or secured by the Loan Documents.

     (7) “Building Loan Commitment” means, as to each Lender, the obligation of such Lender
to make a Building Loan in a principal amount up to but not exceeding the amount set opposite the
name of such Lender on Schedule 1 under the caption “Building Loan Commitment” or, in the
case of a Person that becomes a Lender pursuant to an assignment permitted under Section
12.23, as specified in the respective instrument of assignment pursuant to which such
assignment is effected. The original aggregate principal amount of the Building Loan Commitment is
$75,339,243.00.

2

 

     (8) “Building Loan Mortgage” means the Building Loan Mortgage, Assignment of Leases
and Rents, Security Agreement and Fixture Filing in the amount of the Total Building Loan
Commitment and executed, dated and delivered by Borrower to Administrative Agent (on behalf of the
Lenders) on the Closing Date, securing the Building Loan Notes, as such mortgage may be modified,
amended and/or supplemented and in effect from time to time.

     (9) “Building Loan Notes” has the meaning assigned to such term in Section 1.1 of the
Project Loan Agreement.

     (10) “Change Order” means any modification, amendment and/or supplement to (a) the
Plans and Specifications, (b) the Budget, (c) the Construction Schedule, (d) the Construction
Management Agreement, a Major Contract or any contract, or, (e) with respect to any Tenant
Improvement Plans, any modification, amendment and/or supplement thereto which increases the cost
of Tenant Improvement Work above the budgeted cost therefor previously approved by Administrative
Agent.

     (11) “Completion Date” has the meaning assigned to such term in Section 1.1 of the
Project Loan Agreement.

     (12) “Consent and Agreement” means the consent and agreement executed by the parties
thereto in accordance with the General Assignment and substantially in the same form as attached
thereto.

     (13) “Construction Completion” means the date that the following conditions shall be
satisfied:

     (a) a valid temporary certificate of occupancy has been obtained for the entire
Project (including the entire Retail Component including improvement work required to be
completed by tenants pursuant to the Approved Leases, any Tenant Improvement Work, and
those portions of the Office Component required to have been completed by the original
Maturity Date pursuant to the Budget and the Construction Schedule approved by
Administrative Agent);

     (b) all on-site and off-site work has been completed; and

     (c) Administrative Agent shall have received written certification from the
Construction Consultant, acting reasonably, that (a) the Project Completion Work has been
substantially completed in accordance with the Plans and Specifications, subject to
completion of Punch List Items, (b) the deliveries required in paragraphs 1 and 2 of
Schedule 4 — Part C shall have been received and reasonably approved by Administrative
Agent.

     (14) “Construction Consultant” means IVI International, Inc. and/or such other
consultant as Administrative Agent may engage on behalf of the Lenders to examine the Plans and
Specifications, changes in the Plans and Specifications and cost breakdowns and estimates, to make
periodic inspections of the work of construction of the Project on behalf of the Lenders, and to
advise and render reports to Administrative

3

 

Agent and the Lenders concerning the same and to provide such other advice in respect of the
Project as Administrative Agent may from time to time request.

     (15) “Construction, Cost and Plan Review” has the meaning assigned to such term in
Section 1.1 of the Project Loan Agreement.

     (16) “Construction Management Agreement” means the contract for construction
management services in connection with the construction of the Improvements to be entered into
between Borrower and the Construction Manager, as approved by Administrative Agent pursuant to
Schedule 4 — Part A, as the same may be modified, supplemented and/or amended from time to
time in accordance with the terms of this Agreement. The Construction Management Agreement shall
provide for a guaranteed maximum fixed price for the Construction Work consistent with the Budget,
and shall provide that the Construction Management Fee shall be disbursed based upon percentage of
completion with final payments to be made upon the issuance of all certificates of occupancy,
release of all liens by contractors, materialmen and suppliers, and the Loans being In Balance.

     (17) “Construction Management Fee” means the construction management fee payable under
the Construction Management Agreement.

     (18) “Construction Manager” means ACRS, Inc. or another construction manager for the
Construction Work reasonably acceptable to Administrative Agent.

     (19) “Construction Schedule” means the schedule prepared and certified by Borrower and
verified by the Construction Consultant establishing a timetable for commencement and completion of
the Construction Work (other than Tenant Improvement Work), showing, on a monthly updated basis,
the anticipated and actual progress of the Construction Work and indicating that Construction
Completion will be achieved on or before the Completion Date. To the extent Borrower is performing
any Tenant Improvement Work, the Construction Schedule will be amended to include the timetable for
the completion of such Tenant Improvement Work, as the same may from time to time hereafter be
modified in accordance with the terms of this Agreement.

     (20) “Construction Work” means all work and materials (including all labor, equipment
and fixtures with respect thereto and including demolition, asbestos removal and Tenant Improvement
Work) necessary to construct the Improvements, all of which shall be performed and completed in
accordance with and as contemplated by the Plans and Specifications (or Tenant Improvement Plans in
the case of Tenant Improvement Work) and all Applicable Laws.

     (21) “Contracts” means, collectively, the Major Contracts and the Minor Contracts.

     (22) “Cost of Improvement” shall have the meaning defined in Paragraph 5 of Section 2
of Article I of the Lien Law, as such term applies to the Improvements being financed with the
proceeds of the Building Loans.

4

 

     (23) “Design Professional” means, collectively, Borrower’s Architect, the structural
engineer, the mechanical engineer and other design professionals relating to the Construction Work,
as reasonably approved by Administrative Agent, and any reference in this Agreement to a
certification or other document to be executed by the applicable Design Professional shall mean one
or more of such Design Professionals designated by Administrative Agent as the Design Professionals
to execute such certification or document, depending on the areas of expertise covered by such
certification or document.

     (24) “Event of Default” has the meaning assigned to such term in Article 10.

     (25) “General Assignment” has the meaning assigned to such term in Section 1.1 of the
Project Loan Agreement.

     (26) “Hard Costs” means the aggregate costs of all labor, materials, equipment and
fixtures necessary for completion of construction of the Improvements, as more particularly set
forth in the Budget.

     (27) “Improvements” has the meaning assigned to such term in Section 1.1 of the
Project Loan Agreement.

     (28) “Land” has the meaning assigned to such term in the Recitals.

     (29) “Lender” and “Lenders” have the meanings assigned in the Preamble.

     (30) “Lien Law” shall mean the Lien Law of the State of New York, as amended from time
to time.

     (31) “Major Contract” means any contract, trade contract, material agreement or supply
contract relating to the construction of the Improvements or a component thereof in the amount of
$2,000,000 or more.

     (32) “Major Contractor” means any contractor or trade contractor or supplier who is a
party to a Major Contract.

     (33) “Maturity Date” has the meaning assigned to such term in Section 1.1 of the
Project Loan Agreement.

     (34) “Minor Contract” means, with respect to the Construction Work, any contract,
trade contract, material agreement or supply contract relating to the construction of the
Improvements or a component thereof that is not a Major Contract.

     (35) “Minor Contractor” means any contractor or trade contractor or supplier who is a
party to a Minor Contract.

     (36) “Mortgages” has the meaning assigned to such term in Section 1.1 of the Project
Loan Agreement.

5

 

     (37) “Plans and Specifications” means the final plans and specifications for the
construction of the Project Completion Work delivered by Borrower to Administrative Agent, prepared
by Borrower’s Design Professionals and approved by Administrative Agent, the Construction
Consultant and, to the extent then required, by any applicable Governmental Authority and such
other parties whose approval or consent may be required under any law, regulation, prior agreement,
and/or this Agreement and all modifications, amendments and/or supplements thereof made by Change
Orders permitted pursuant to the terms of this Agreement. A list of the presently existing Plans
and Specifications is attached hereto as Schedule 1.1(37).

     (38) “Project” means, collectively, (a) the Land, together with any air rights and
other rights, privileges, easements, hereditaments and appurtenances thereunto relating or
appertaining to the Land, (b) the Improvements, together with all fixtures and equipment(to the
extent owned by Borrower) required for the operation of the Improvements, (c) all building
materials and personal property (to the extent owned by Borrower) related to the foregoing and (d)
all other items described in the granting clauses of the Mortgages.

     (39) “Project Completion Work” means in the case of the Project, all of the work to be
performed by Borrower and/or its contractors in connection with the construction of the
Improvements as more particularly described in the Plans and Specifications.

     (40) “Project Costs” means, collectively, the Project Loan Costs, the Hard Costs and
Soft Costs.

     (41) “Project Documents” means the documents set forth on Schedule 1.1(41)
attached hereto, as the same may be modified, supplemented and/or amended from time to time as
permitted under the Loan Documents.

     (42) “Project Loan Agreement” has the meaning assigned to such term in the Recitals.

     (43) “Project Loan Costs” has the meaning assigned to such term in Section 1.1 of the
Project Loan Agreement.

     (44) “Project Loan Mortgage” has the meaning assigned to such term in Section 1.1 of
the Project Loan Agreement.

     (45) “Project Work Substantial Completion Conditions” means the conditions to the
completion of the Project Completion Work set forth in Schedule 4 — Part C.

     (46) “Punch List Items” means minor construction items to be completed or constructed
with respect to the Project Completion Work or the Tenant Improvement Work which do not materially
interfere either with the use of the Project Completion Work or the acceptance and occupancy of any
space leased to a tenant.

6

 

     (47) “Retainage” has the meaning assigned to such term in Section 4.3(1).

     (48) “Soft Costs” means interest payable on the Building Loans and all other costs in
the Budget which constitute a Cost of the Improvement, excluding Hard Costs, which relate to the
construction of the Improvements and the operation of the Project during the term of this
Agreement.

     (49) “Tenant Improvement Allowances” has the meaning assigned to such term in Section
1.1 of the Project Loan Agreement.

     (50) “Tenant Improvement Plans” means the plans prepared by the engineers and/or
architects for Tenant Improvement Work under each Approved Lease and approved by Borrower and
Borrower’s Architect, to be certified by Borrower to Administrative Agent and the Lenders as
approved by the applicable tenant, Borrower, all required Governmental Authorities, and within the
Budget and, to the extent any approval is required under the applicable lease, as reasonably
approved by Administrative Agent.

     (51) “Tenant Improvement Work” means work to be performed and paid by Borrower, if
any, pursuant to Approved Leases.

     (52) “Unavoidable Delay” means any delay due to strikes, acts of God, fire,
earthquake, floods, explosion, actions of the elements, other accidents or casualty, declared or
undeclared war, riots, mob violence, inability to procure or a general shortage of labor,
equipment, facilities, energy, materials or supplies in the open market, failure of transportation,
lockouts, tenant delays, actions of labor unions, condemnation, court orders, laws, rules,
regulations or orders of Governmental Authorities, or other cause beyond the reasonable control of
Borrower; provided that, in each of the foregoing cases, (a) such cause is not within the control
of Borrower, (b) Lead Borrower gives notice of such delay to Administrative Agent within thirty
(30) days of occurrence of the event resulting in such delay and, after the initial notification,
promptly after request of Administrative Agent or the Construction Consultant, notifies
Administrative Agent and the Construction Consultant of the status of such delay, (c) after giving
effect to the consequences of each such delay, the Loans shall remain In Balance subject to
Borrower curative payments or funding and the Budget Line Item for interest shall remain sufficient
at all times despite such delay subject to Borrower curative payments or funding, (d) such delay
shall not adversely disrupt Borrower’s ability to obtain any Government Approvals substantially in
accordance with the Permitting Schedule (e) such delay will not give rise to any tenant termination
or cancellation rights under a Major Lease, or Borrower obtains an extension from each tenant equal
to such delay so that each of the leases is at all times in full force and effect and there remains
sufficient time to complete all Tenant Improvement Work and (f) Borrower shall use all commercially
reasonable efforts to mitigate the delay caused by such event. For the purposes hereof,
Unavoidable Delays shall not include delays caused by Borrower’s lack of or inability to procure
monies to fulfill Borrower’s commitments and obligations under this Agreement or the other Loan
Documents.

7

 

     (53) “Unsatisfactory Work” means any Construction Work which Administrative Agent
and/or the Construction Consultant has reasonably determined has not been completed in a good and
workmanlike manner, and, to the extent any Construction Work is not specifically addressed in the
construction drawings and specifications, in a manner consistent with sound design principles
and/or sound construction practices, or in substantial conformity with the Plans and
Specifications, or in accordance with all Applicable Law.

ARTICLE 2

LOAN TERMS

Section 2.1 The Commitments, Loans and Notes.

     (1) Building Loans. Each Lender severally agrees, on the terms and conditions of this
Agreement, to make loans (each advance of such a loan being a “Building Loan” and
collectively, the “Building Loans”) on a non-revolving basis to Borrower in Dollars from
time to time in amounts equal to its Proportionate Share of the aggregate amount of Building Loans
to be made of such time; provided, however, that in no event shall the aggregate
principal amount advanced by each Lender exceed the amount of the Building Loan Commitment of such
Lender. The Building Loans shall be advanced from time to time as provided in this Agreement for
the payment of all or part of the Cost of Improvement in connection with the construction of the
Project and shall be funded and repaid in accordance with this Agreement.

     (2) Requests for Building Loan Advances. With respect to each Building Loan, Lead Borrower
shall give Administrative Agent (and the Construction Consultant) a Request for Loan Advance as
provided in Section 4.2. Administrative Agent shall give each Lender notice of any such
Request for Loan Advance in accordance with Section 2.6(4) of the Project Loan Agreement. Not
later than 12:00 noon New York time on the date specified for each Building Loan, each Lender shall
make available for the account of its Applicable Lending Office to Administrative Agent as
specified by Administrative Agent, in immediately available funds, such Lender’s Proportionate
Share of each Building Loan to be made pursuant hereto. After Administrative Agent’s receipt of
such funds and upon fulfillment of the applicable conditions referred to in Article 4 and
Schedule 4, Administrative Agent shall make such funds available to Lead Borrower by
depositing the same, in immediately available funds, in an account designated by Lead Borrower by
the end of business on the applicable advance date, to be applied in accordance with the terms of
this Agreement.

     (3) Changes of Commitments.

          (a) The respective Building Loan Commitments shall reduce pro rata automatically by reason of
any prepayment of the Building Loans applicable thereto in the amount of any such prepayment.

8

 

          (b) If the Maturity Date is extended in accordance with Section 2.5, all of the unused
Building Loan Commitments then remaining at the commencement of the extended loan period shall be
automatically terminated.

          (c) The Building Loan Commitments, once terminated or reduced, may not be reinstated. Each
termination or reduction of the Building Loan Commitments shall be made ratably among the Lenders
in accordance with their respective Building Loan Commitments.

     (4) Lending Offices. The Building Loans of each Lender shall be made and maintained at such
Lender’s Applicable Lending Office for Building Loans of such Type.

     (5) Several Obligations. The failure of any Lender to make any Building Loan to be made by it
on the date specified therefor shall not relieve any other Lender of its obligation to make its
Building Loan, but neither any Lender nor Administrative Agent shall be responsible for the failure
of any other Lender to make a Building Loan to be made by such other Lender.

     (6) Notes. The Building Loans made by each Lender shall be evidenced by the Building Loan
Notes, payable to such Lender in a principal amount equal to its Proportionate Share of the
applicable Building Loans covered by such notes.

Section 2.2 Conversion or Continuations of Building Loans.

     Subject to the terms of this Agreement and the Project Loan Agreement, Borrower may borrow the
Building Loans by means of Base Rate Loans and/or LIBOR-based Loans, and such Building Loans may be
prepaid, Converted or Continued pursuant to the Project Loan Agreement.

Section 2.3 Interest Rate; Late Charge.

     Borrower hereby promises to pay to Administrative Agent for account of each Lender interest on
the unpaid principal amount of each Building Loan (which may be Base Rate Loans and/or LIBOR-based
Loans) made by such Lender for the period from and including the date of such Building Loan to but
excluding the date such Loan shall be paid in full, at the rates per annum and in the manner
provided in the Project Loan Agreement, including, without limitation, Section 2.3 of the Project
Loan Agreement.

Section 2.4 Terms of Payment.

     Borrower hereby promises to pay to Administrative Agent for account of each Lender the
payments of principal and interest due on the Building Loans in accordance with the Building Loan
Notes and the Project Loan Agreement, which is hereby incorporated by reference. Borrower hereby
promises to pay to Administrative Agent for the account of each Lender the principal of such
Lender’s outstanding Building Loans, together with accrued and unpaid interest (including accrued
and unpaid Additional Interest, if applicable), and all other amounts due under the Loan Documents,
on the Maturity Date.

9

 

Section 2.5 Extension of Maturity Date.

     (1) Borrower may, at its option, extend the term of the then outstanding principal amount for
a period of six (6) months to the First Extension Maturity Date, subject to the satisfaction of the
conditions contained in Section 2.5(1) of the Project Loan Agreement.

     (2) Borrower may, at its option, extend the term of the then outstanding principal amount for
a period of six (6) months to the Second Extension Maturity Date, subject to the satisfaction of
the conditions contained in Section 2.5(2) of the Project Loan Agreement.

     (3) Borrower may, at its option, extend the term of the then outstanding principal amount for
a period of six (6) months to the Third Extension Maturity Date, subject to the satisfaction of the
conditions contained in Section 2.5(3) of the Project Loan Agreement.

Any extension pursuant to this Section 2.5 shall be otherwise subject to all of the other
terms and provisions of this Agreement and the other Loan Documents.

Section 2.6 Payments; Pro Rata Treatment; Etc.

     The method of funding the Building Loans, pro rata treatment of the Building Loans among the
Lenders, computation of interest, notices, sharing of payments and other related matters shall be
subject to the terms of the Building Loan Notes and Section 2.6 of the Project Loan Agreement,
which is hereby incorporated by reference.

Section 2.7 Yield Protection; Etc.

     Provisions relating to LIBOR-based Loans, including, without limitation, increased costs,
inability to determine any LIBOR Rate, illegality, treatment of affected Building Loans,
compensation for broken funding, Taxes and replacement of Lenders shall be subject to the terms of
the Building Loan Notes and Section 2.7 of the Project Loan Agreement, which is hereby incorporated
by reference.

Section 2.8 Agency Fee.

     Until payment in full of all obligations under this Agreement and the other Loan Documents,
Borrower shall pay to Administrative Agent, for its sole account, the Agency Fee in accordance with
the Fee Letter.

Section 2.9 Exit Fee.

     With respect to the repayment or prepayment of principal under the Loans for any reason
whatsoever (whether such repayment or prepayment of the Loans is made voluntarily or involuntarily
or as a result of the occurrence of an Event of Default pursuant to which the Administrative Agent
has accelerated the obligations of the

10

 

Borrower under the Loan Documents or otherwise), Borrower shall pay to Administrative Agent
the Exit Fee in accordance with Section 2.9 of the Project Loan Agreement.

ARTICLE 3

INSURANCE, CONDEMNATION, AND IMPOUNDS

Section 3.1 Insurance, Condemnation, Impounds.

     Provisions relating to insurance, condemnation and impounds, including, without limitation,
the use of casualty and condemnation proceeds shall be subject to the terms of Article 3 of the
Project Loan Agreement, which is hereby incorporated by reference.

ARTICLE 4

DISBURSEMENTS OF THE BUILDING LOANS

Section 4.1 General Conditions.

     (1) Subject to (a) Borrower’s satisfaction of the applicable conditions precedent set forth in
Schedule 4 and (b) Borrower’s compliance with the applicable provisions of this Article
4, the Lenders shall disburse the proceeds of each Building Loan within ten (10) Business Days
after Administrative Agent’s receipt of all of the documents and items to be delivered or received
pursuant to Schedule 4 and this Article 4; provided, however, that
at no time shall the Lenders be obligated to:

     (a) advance to Lead Borrower more than the amount that Borrower has funded from its
own monies or an existing loan or is then required to fund to the party seeking payment or,
in the case of reimbursement, to the party seeking reimbursement (subject to Retainage, if
applicable),

     (b) make an advance if the Building Loans are not In Balance in accordance with
Section 4.3 of the Project Loan Agreement,

     (c) subject to possible reallocation in accordance with this Agreement and the Project
Loan Agreement, advance proceeds of a Building Loan in an amount in excess of the Budget
Line Items set forth in the Budget, as the same may be adjusted in accordance with the
terms of this Agreement,

     (d) make any Building Loans to the extent any Operating Revenues have not been applied
in accordance with Section 4.6(1) of the Project Loan Agreement,

     (e) except as provided in Section 4.3 hereof, advance any portion of the
Retainage,

     (f) except as provided in Section 4.4 hereof, make any Building Loans with
respect to materials not yet incorporated into the Improvements,

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     (g) make an advance in connection with any Change Order for which Administrative
Agent’s approval is required under Section 9.3(2) which has not been approved by
Administrative Agent in accordance with Section 9.3(2),

     (h) make any Building Loans for any Tenant Improvement Work if it relates to a lease
that is not an Approved Lease that meets the requirements of Section 4.5 hereof,

     (i) make any Building Loans for any contractor until (A) in the case of a Major
Contractor, such Major Contractor has been approved by Administrative Agent and has duly
executed and delivered to Administrative Agent the applicable consent and attornment
agreement in substantially the form attached to the General Assignment and (B) in the case
of any contractor, has duly entered into a contract with the Construction Manager with
respect to its applicable portion of the Construction Work, a copy (certified by an
authorized officer of Borrower) of such contract has been delivered by Lead Borrower to
Administrative Agent; or

     (j) make any Building Loans with respect to any sums due a Design Professional, until
such Design Professional has duly entered into a contract with Borrower, a copy (certified
by an Authorized Officer of Borrower) of such contract has been delivered by Lead Borrower
to Administrative Agent, and such Design Professional has duly executed and delivered to
Administrative Agent the applicable Consent and Agreement in substantially the form
attached to the General Assignment.

     (2) Notwithstanding anything to the contrary contained in this Agreement, the Lenders shall
have no obligation to advance any Building Loan unless Administrative Agent is, at all times,
reasonably satisfied that the Improvements can be constructed Lien free, substantially in
accordance with the Plans and Specifications (or the Tenant Improvement Plans in the case of Tenant
Improvement Work) for the sums set forth in the Budget (or, if more, Borrower has furnished the
difference in cash or cash equivalents, subject to the provisions of Sections 4.3, 4.4 and 4.5 of
the Project Loan Agreement, by the Completion Date or, with respect to Tenant Improvement Work,
such date as shall be required for the completion of the applicable Tenant Improvement Work under
an Approved Lease. Administrative Agent will endeavor to give notice to Lead Borrower of its
intention not to authorize disbursement of any Building Loan proceeds based on the foregoing, but
neither the Lenders nor Administrative Agent shall have any liability hereunder should
Administrative Agent fail to do so, and no failure by Administrative Agent to give such notice
shall affect Administrative Agent’s or any Lender’s rights under this subsection (2).

Section 4.2 Procedure for Making Disbursements of Building Loan Proceeds.

     (1) After the Closing Date, disbursements shall be made from time to time as construction
progresses pursuant to a Request for Loan Advance, but no more frequently than once in each
calendar month.

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     (2) Each Request for Loan Advance shall (a) be duly executed by an Authorized Officer on
behalf of Lead Borrower, (b) be submitted to Administrative Agent and the Construction Consultant
not less than ten (10) Business Days prior to the proposed disbursement date for such Building
Loans, (c) specify the items to be paid or reimbursed with the proceeds of the requested Building
Loans, (d) include the documentation required to be included therewith under Schedule 4 and
(e) be in the minimum amounts required under Section 2.6(3) of the Project Loan Agreement.

     (3) All advances of the Building Loans shall be made for the payment of Project Costs in
accordance with the Budget upon Borrower’s satisfaction of the applicable conditions set forth in
this Article 4 and Schedule 4 — Parts A, B, and C, as applicable.

     (4) In the event that Lead Borrower does not request a disbursement within thirty (30) days
after the previous disbursement of a Building Loan, Borrower shall nonetheless within such thirty
(30) day period and during each subsequent thirty (30) day period in which Borrower does not
request a disbursement of the Building Loan, satisfy the conditions precedent to disbursements set
forth in this Agreement.

Section 4.3 Retainage.

     (1) Disbursement of the available proceeds of each Building Loan with respect only to Hard
Costs and Tenant Improvement Work shall be limited to ninety percent (90%) of the value of the Hard
Costs and Tenant Improvement Work set forth in the applicable Request for Loan Advance until fifty
percent (50%) of the work covered by a particular contract has been completed (as determined by the
Construction Consultant, and, thereafter, the amount disbursed shall be increased to one hundred
percent (100%) of the Hard Costs and Tenant Improvement Work performed under that particular
contract), with the remainder of the sums due for the work performed under such contract to be
withheld and disbursed in compliance with Section 4.3(2) below; provided, however, that (a)
in no event shall the percentage of the sums due which is withheld be less than the retainage
percentage set forth in any contract or subcontract for such portion of the Improvements or any
applicable lease with respect to Tenant Improvement Work and (b) if Administrative Agent has, in
its sole and absolute discretion, approved a contract or lease requiring less than the above
retainage, then Administrative Agent shall disburse the proceeds of the Building Loans as if the
retainage applicable under such contract or lease were provided for in this Section. The amounts
authorized to be withheld pursuant to this paragraph (1) being collectively referred to herein as
the “Retainage.” No Retainage will apply to Soft Costs.

     (2) The Lenders shall advance Building Loans pursuant to a Request for Loan Advance to pay
portions of the Retainage upon Borrower’s compliance with the following conditions to the
satisfaction of Administrative Agent:

     (a) all of the work under such contract or the Tenant Improvement Work under the
respective Approved Lease, as the case may be, is finally completed in accordance with the
terms of such contract or Approved Lease and

13

 

the applicable Plans and Specifications or Tenant Improvement Plans, as the case may
be, and Administrative Agent receives a certification to that effect from an Authorized
Officer of Borrower and Borrower’s Architect and such work has been approved by the
Construction Consultant, acting reasonably;

     (b) the work performed by such contractor has been approved, to the extent such
approval is then required, by the Governmental Authorities having jurisdiction over the
same and the applicable permits with respect to such work, if any, have been issued;

     (c) the contract or the Approved Lease, as the case may be, provides for such early
release of the applicable Retainage;

     (d) the applicable contractor delivers to Administrative Agent a final and complete
unconditional release of Lien with respect to such work, subject to the receipt of the
Retainage;

     (e) Administrative Agent shall, if requested, have received copies of any warranties,
guaranties or “as built” drawings relating to such work to the extent required to be
delivered by the contractor under the applicable contract for such work; and

     (f) all other applicable requirements and conditions with respect to such advance of
Building Loan proceeds are satisfied.

Section 4.4 Stored Materials.

     (1) The Lenders shall advance the proceeds of Building Loans with respect to materials and
equipment that are included in the Budget and are not yet incorporated into the Improvements as of
the date of the applicable Building Loans, but are temporarily stored either on-site or off-site so
long as Administrative Agent shall have received the following items, each in form and substance
reasonably satisfactory to Administrative Agent:

     (a) evidence that Borrower has an obligation under the applicable contract,
subcontract or purchase order to pay for such materials and equipment prior to their
installation;

     (b) evidence that the ownership of such materials and equipment is, or upon payment
will be, vested in Borrower free of any liens and claims of third parties, including,
without limitation, bills of sale and conditional lien waivers from the respective
contractor, contractor or vendor and that such material and equipment are clearly marked to
indicate the ownership thereof by Borrower;

     (c) evidence that on-site stored materials are included within the coverages of
insurance policies carried by Borrower or proof of other insurance (which shall include a
standard mortgagee endorsement or its equivalent) which has been approved by Administrative
Agent;

14

 

     (d) evidence reasonably acceptable to Administrative Agent and the Construction
Consultant that the stored materials are reasonably protected against vandalism (casualty),
theft or damage and are stored in the U.S.A. with respect to off-site stored materials;

     (e) evidence that Building Loans made by the Lenders for said materials do not, at any
one time, exceed, in the aggregate, $1,000,000 for on-site stored materials and, in the
aggregate, $1,000,000 for off-site stored materials, inclusive in each case of the amount
requested;

     (f) evidence that Administrative Agent (on behalf of the Lenders) has a perfected
first security interest in such material prior to or simultaneous with the making of such
Building Loans;

     (g) as to materials stored off-site only, evidence that the materials, equipment and
parts are under the control of the applicable supplier and are being kept at bonded
warehouse sites or otherwise stored in a designated and secured area satisfactory to
Administrative Agent and the Construction Consultant, in each case in the U.S.A. and
reasonably approved by Administrative Agent and the Construction Consultant; and that such
equipment and parts shall have been clearly designated, marked or tagged to indicate
ownership by Borrower and the security interest of Administrative Agent (on behalf of the
Lenders) therein;

     (h) evidence that Administrative Agent (on behalf of the Lenders) has a perfected
first security interest (i.e., Uniform Commercial Code filings or other applicable filings)
in such materials, equipment and parts prior to or simultaneous with the making of such
Building Loans, which requirement shall, if requested by Administrative Agent in connection
with the first advance for property stored in the applicable state (and in connection with
any other advance in such state when Administrative Agent reasonably believes that the
collateral is substantially different from the type of collateral covered by the first
opinion), be supported by the opinion of a local counsel in the state where the applicable
equipment and parts are stored; and

     (i) evidence reasonably acceptable to Administrative Agent and the Construction
Consultant as to the identity, quality and quantity of same; and

     (j) evidence that all other applicable requirements and conditions with respect to
such advance of Building Loan proceeds have been satisfied.

Section 4.5 Tenant Improvement Work.

     (1) Building Loans shall be made to Borrower in connection with Tenant Improvement Allowances
and Tenant Improvement Work in accordance with this Section 4.5.

     (2) The first request for disbursement for any Tenant Improvement Allowance in connection with
a specific Approved Lease shall be accompanied by the following, all

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of which shall be subject to the reasonable approval of Administrative Agent to the extent
Borrower has approval rights with respect thereto pursuant to the terms of the applicable Approved
Lease (any such approval or disapproval to be made by Administrative Agent within a reasonably
sufficient time for Borrower to comply with any time limits set forth in the applicable Approved
Lease for Borrower’s response):

     (a) all documentation required to be delivered by the applicable tenant pursuant to
its respective Approved Lease;

     (b) if not already delivered to Administrative Agent, a copy of the fully executed
Approved Lease (already approved by Administrative Agent) covering such leased space;

     (c) copies of all contracts, if not previously delivered to Administrative Agent, for
the performance of such Tenant Improvement Work;

     (d) a cost breakdown for each trade performing such Tenant Improvement Work in such
leased space, and an estimated commencement and completion date;

     (e) an estimate of all costs of the Tenant Improvement Work to be performed in such
leased space;

     (f) the Tenant Improvement Plans for the applicable leased space, together with a
certificate from Borrower’s Architect or the tenant’s architect that such Tenant
Improvement Plans comply with all Applicable Law affecting the Project and such leased
space; and

     (g) copies of all Government Approvals required to commence such Tenant Improvement
Work.

     (3) The Lender’s obligation to make disbursements of any Building Loans for Tenant Improvement
Work shall be subject to the further condition precedent that all of the following requirements
shall have been completed to the reasonable satisfaction of Administrative Agent:

     (a) To the extent tenant is obligated to provide such things to Borrower, Lead
Borrower shall have furnished to Administrative Agent and the Construction Consultant
copies of all Change Orders, contracts or purchase orders relating to Tenant Improvement
Work performed pursuant to the contracts described in this Section 4.5; and

     (b) loans shall be made for Tenant Improvement Allowances only to the extent the
applicable tenant is then entitled to receive such Tenant Improvement Allowance pursuant to
the terms of its applicable Approved Lease;

16

 

     (c) no mechanic’s liens shall have been filed against the Project in connection with
the work being performed under the applicable Approved Lease; and

     (d) Borrower shall have complied with all the other applicable conditions precedent to
a disbursement of a Building Loan contained in Schedule 4 and Article 4 of
this Agreement.

     (4) Administrative Agent’s obligation to make disbursements of the final Building Loans to
Lead Borrower for Tenant Improvement Work for any Approved Lease is subject to the further
condition precedent that all of the following requirements shall have been completed to the
reasonable satisfaction of Administrative Agent:

     (a) Construction Completion has been achieved with respect to the applicable Tenant
Improvement Work free of mechanics’ liens unless such liens shall be bonded or otherwise
removed of record or the Title Company shall have provided affirmative coverage in
accordance with Schedule 4 — Part C;

     (b) Administrative Agent and the Construction Consultant shall have received the
following items in connection with each Building Loan:

     (i) copies of all final waivers of lien (or conditional lien waivers) and
sworn statements from contractors, subcontractors and material suppliers relating
to the applicable Tenant Improvement Work;

     (ii) a certificate from Borrower’s Architect, the tenant’s architect or
another architect satisfactory to Administrative Agent that (A) Construction
Completion has been achieved with respect to the applicable Tenant Improvement Work
in accordance with the applicable Tenant Improvement Plans therefor previously
approved by Administrative Agent and (B) the applicable Tenant Improvement Work
complies with all applicable building codes;

     (iii) copies of all applicable Government Approvals required by any
Governmental Authority for the occupancy and operation of the space covered by the
applicable Approved Lease;

     (iv) an estoppel certificate, in a form acceptable to Administrative Agent,
from the tenant under the applicable Approved Lease pursuant to which such Tenant
Improvement Work was constructed stating that such tenant accepts the Tenant
Improvement Work subject to Punch List Items (which, if incomplete on the date of
final disbursement for such Tenant Improvement Work, Administrative Agent may hold
back an amount equal to (x) 115% of the estimated cost of completing such items
from the final disbursement minus (y) any Retainage that Administrative
Agent is still holding with respect to the applicable Tenant Improvement Work, such
amount to be paid to Lead Borrower on the completion of such items and the
satisfaction of the requirements of

17

 

Section 4.3 with respect to Retainage, which Borrower shall diligently
complete);

     (c) Administrative Agent shall have received written advice from the Construction
Consultant that the applicable Construction Completion has been achieved with respect to
Tenant Improvement Work in accordance with the Tenant Improvement Plans previously approved
by Administrative Agent; and

     (d) All of the applicable conditions precedent to any Building Loan under Schedule
4 and Article 4 of this Agreement shall have been satisfied.

Section 4.6 Unsatisfactory Work.

     If the Construction Consultant or Administrative Agent shall reasonably determine that a
portion of the Construction Work for which Loans are sought is Unsatisfactory Work, Administrative
Agent shall be entitled to withhold from such Loans amounts sufficient to pay for the
Unsatisfactory Work and shall advance only the balance of such Loan until such time as
Unsatisfactory Work has been corrected to the reasonable satisfaction of the Construction
Consultant and Administrative Agent.

Section 4.7 Direct Loan Advances by Administrative Agent.

     The Lenders shall, at the option of Administrative Agent, advance all or any part of any
particular Building Loan either (1) to Lead Borrower for disbursement in accordance with a Request
for Loan Advance, (2) during an Event of Default, directly to the Construction Manager, a Major
Contractor, other contractor, subcontractor, material supplier or other party any costs payable to
such party, (3) during an Event of Default, at Borrower’s expense, to the Title Company which shall
pay said monies to the parties as so instructed by Administrative Agent or (4) as contemplated by
Section 1.01(b) of the Guaranty of Completion (whether the applicable work is being
performed by the Guarantor or Administrative Agent). The execution of this Agreement by Borrower
shall, and hereby does, constitute an irrevocable authorization to the Lenders to make such direct
advances provided for in clauses (2), (3) and (4) above and no further
authorization from Borrower shall be necessary to warrant such direct advances, and all such direct
advances shall be secured by the Security Documents as fully as if made directly to Borrower,
regardless of the disposition thereof by any party so paid. During an Event of Default, at
Administrative Agent’s request, any advance of Building Loan proceeds made by and through the Title
Company may be made pursuant to the provisions of a construction escrow agreement in the form then
in use by such company with such modifications thereto as are reasonably required by Administrative
Agent. Borrower agrees to join as a party to such escrow agreement and to comply with the
requirements set forth therein (which shall be in addition to and not in substitution for the
requirements contained in this Agreement) and to pay the fees and expenses of the Title Company
charged in connection with the performance of its duties under such construction escrow agreement.

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Section 4.8 No Waiver or Approval by Reason of Loan Advances.

     The making of any Building Loans by the Lenders shall not be deemed an acceptance or approval
by Administrative Agent or the Lenders (for the benefit of Borrower or any third party) of the
Construction Work or other work theretofore done or constructed or to the Lenders’ obligations to
make further Building Loans, nor, in the event Borrower is unable to satisfy any condition, shall
any such failure to insist upon strict compliance have the effect of precluding Administrative
Agent or the Lenders from thereafter declaring such inability to be an Event of Default as herein
provided. Administrative Agent’s and/or the Lenders’ waiver of, or failure to enforce, any
conditions to or requirements associated with any Building Loans in any one or more circumstances
shall not constitute or imply a waiver of such conditions or requirements in any other
circumstances.

Section 4.9 Construction Consultant.

     Administrative Agent (on behalf of the Lenders) reserves the right to employ the Construction
Consultant and any other consultants necessary, in Administrative Agent’s reasonable judgment, to
review Requests for Loan Advance and inspect all construction and the periodic progress of the
same, the reasonable cost therefor to be borne by Borrower as a loan expense. Borrower shall make
available to Administrative Agent and the Construction Consultant on reasonable notice during
business hours, all documents and other information (including, without limitation, receipts,
invoices, lien waivers and other supporting documentation to substantiate the costs to be paid with
the proceeds of any Request for Loan Advance) which any contractor or other Person entitled to
payment for Construction Work is required to deliver to Borrower and shall use its commercially
reasonable efforts to obtain any further documents or information reasonably requested by
Administrative Agent or the Construction Consultant in connection with any Loan or the
administration of this Agreement. Borrower acknowledges and agrees that the Construction
Consultant shall have no responsibilities or duties to Borrower, and shall be employed solely for
the benefit of Administrative Agent and the Lenders. No default of Borrower will be waived by an
inspection by Administrative Agent or the Construction Consultant. In no event will any inspection
by Administrative Agent or the Construction Consultant be a representation that there has been or
will be compliance with the Plans and Specifications or that the Construction Work is free from
defective materials or workmanship. Any and all provisions of this Agreement in respect of the
Construction Consultant shall be enforceable solely by, and at the option of, Administrative Agent,
and Borrower shall not be a third-party beneficiary thereof. Any and all reports, advice or other
information provided by the Construction Consultant to Administrative Agent and/or the Lenders or
otherwise produced by or in the possession of the Construction Consultant shall be confidential and
Borrower shall have no right to obtain or review same.

Section 4.10 Authorization to Make Loan Advances to Cure Borrower’s Defaults.

     If an Event of Default shall occur, Administrative Agent (subject to the provisions of Section
14.3 of the Project Loan Agreement) may (but shall not be required to)

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perform any of such covenants and agreements with respect to which Borrower is in Event of
Default. Any amounts expended by Administrative Agent in so doing and any amounts expended by
Administrative Agent in connection therewith shall constitute a Building Loan and be added to the
outstanding principal balance of the Building Loans, and the Lenders shall make the applicable
Building Loans to fund any such disbursements. The authorization hereby granted is irrevocable,
and no prior notice to or further direction or authorization from Borrower is necessary for
Administrative Agent to make such disbursements.

Section 4.11 Reserved.

Section 4.12 Administrative Agent’s Right to Make Loan Advances in
Compliance with the Guaranty of Completion.

     Any Building Loan proceeds disbursed by Administrative Agent as contemplated by Section
1.01(b) of the Guaranty of Completion (whether the applicable work is being performed by the
Guarantor or Administrative Agent) shall constitute a Building Loan and be added to the outstanding
principal balance of the Building Loans, and the Lenders shall make the applicable Building Loans
to fund any such disbursements. The authorization hereby granted is irrevocable and no prior
notice to or further direction or authorization from Borrower is necessary for Administrative Agent
to make such disbursements.

Section 4.13 No Third-Party Benefit.

     This Agreement is solely for the benefit of the Lenders, Administrative Agent, lead Borrower
and Borrower. All conditions of the obligations of the Lenders to make advances hereunder are
imposed solely and exclusively for the benefit of the Lenders and may be freely waived or modified
in whole or in part by the Lenders at any time if in their sole discretion they deem it advisable
to do so, and no Person other than Lead Borrower or Borrower (provided, however,
that all conditions have been satisfied) shall have standing to require the Lenders to make any
Building Loan advances or shall be a beneficiary of this Agreement or any advances to be made
hereunder.

ARTICLE 5

ENVIRONMENTAL MATTERS

     Borrower hereby repeats and agrees to observe all representations, warranties and covenants
contained in Article 5 of the Project Loan Agreement with the same force and effect as if set forth
herein in their entirety.

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ARTICLE 6

LEASING MATTERS

     Borrower hereby repeats and agrees to observe all covenants contained in Article 6 of the
Project Loan Agreement with the same force and effect as if set forth herein in their entirety.

ARTICLE 7

REPRESENTATIONS AND WARRANTIES

     Borrower hereby reaffirms and ratifies the representations and warranties set forth in Article
7 of the Project Loan Agreement and elsewhere in the Project Loan Agreement with the same force and
effect as if set forth herein in their entirety. In addition, Borrower hereby represents and
warrants to Administrative Agent and the Lenders that:

Section 7.1 Cost of Improvement.

     Each item included in the Budget is included within the definition of Cost of Improvement. A
true statement under oath, verified by Borrower, in full compliance with Section 22 of the Lien Law
is attached hereto as Exhibit B.

Section 7.2 Design Professionals’ Certificates.

     To Borrower’s best knowledge, the certifications set forth in the certificates of the Design
Professionals which Borrower has furnished in accordance with Schedule 4— Part A,
paragraph 25 and Part C, paragraph 1(e) hereof are true and correct.

Section 7.3 Tenant Improvement Work.

     Schedule 7.3 attached hereto sets forth a true and complete summary of all Tenant
Improvement Work currently provided for in the Leases; provided that Schedule 7.3 shall be
subject to update as Approved Leases are executed or amended in accordance herewith.

ARTICLE 8

FINANCIAL REPORTING

     Borrower hereby reaffirms and ratifies the representations and warranties set forth in Article
8 of the Project Loan Agreement and elsewhere in the Project Loan Agreement with the same force and
effect as if set forth herein in their entirety.

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ARTICLE 9

COVENANTS

     Borrower hereby repeats and agrees to observe all covenants contained in Article 9 of the
Project Loan Agreement with the same force and effect as if set forth herein in their entirety. In
addition, Borrower covenants and agrees with the Lenders and Administrative Agent that, so long as
any Commitment or Loan is outstanding and until payment in full of all amounts payable by the
Borrower hereunder:

Section 9.1 Payment for Labor and Materials.

     Borrower shall promptly pay when due all invoices and costs for labor, materials, and
specifically fabricated materials incurred in connection with the Project and never permit to exist
beyond the due date thereof in respect of the Project or any part thereof any Lien, even though
inferior to the Liens of the Loan Documents. Borrower may contest the validity or amount of such
invoices and Liens so long as (1) Lead Borrower notifies Administrative Agent that it intends to
contest such claim or demand, (2) Borrower provides Administrative Agent with an indemnity, bond or
other security reasonably satisfactory to Administrative Agent (including an endorsement to
Administrative Agent’s title insurance policy insuring against such claim or demand) assuring the
discharge of Borrower’s obligations for such claims and demands, including interest and penalties,
and (3) Borrower is diligently contesting the same by appropriate legal proceedings in good faith
and at its own expense and concludes such contest prior to the date on which the Project could be
sold, forfeited, terminated, cancelled or lost for non payment, (4) such proceeding shall not
subject Borrower, Administrative Agent or any Lender to criminal or civil liability (other than
civil liability as to which adequate security has been provided pursuant to clause (2) above), and
(5) Borrower shall promptly upon final determination thereof make payment in accordance with such
determination.

Section 9.2 Inspection.

     Borrower shall permit representatives of Administrative Agent, the Construction Consultant and
the Lenders, at reasonable times and on reasonable advance notice, to examine its books of record
and account, to make copies and abstracts therefrom, and to discuss its affairs, finances and
accounts with its principal officers, engineers and independent accountants (and by this provision
Borrower authorizes said accountants to discuss with such Persons such affairs, finances and
accounts, but after prior notice to Borrower of such discussions). Without limiting the foregoing,
representatives of the Construction Consultant, Administrative Agent and the Lenders shall have the
right at reasonable times and on reasonable advance notice to (a) inspect the Project and all
materials to be used in connection with the construction of the Improvements from time to time and
to witness the construction thereof, (b) to conduct such environmental and engineering inspections
and studies as Administrative Agent may require, provided that a maximum of one (1) such inspection
or study may be conducted in any twelve month period unless (i) an Event of Default has occurred,
or (ii) Administrative Agent has a

22

 

reasonable suspicion of Hazardous Materials or other condition at or near the Project that
would warrant such an inspection or study, (c) to examine all detailed plans and shop drawings in
connection with the construction of the Improvements and (d) meet with the representatives of the
Design Professionals, the Construction Manager and the Major Contractors to discuss the status and
issues relating to the construction of the Improvements (and by this provision Borrower authorizes
Borrower’s Architect, the Construction Manager and the Major Contractors to cooperate and discuss
with such Persons such construction matters, but after reasonable prior notice to Borrower of such
discussions). Borrower shall at all times cause a complete set of the original plans (and all
supplements thereto) relating to the construction of the Project to be maintained at the Project or
construction office and available for inspection by such representatives.

Section 9.3 Project Construction and Completion.

     (1) Borrower shall construct the Construction Work in a good and workmanlike manner in
accordance with generally accepted engineering and construction practice, and in material
conformance with the recommendations set forth in each soils report, seismic report, geotechnical
report and other engineering reports submitted to Administrative Agent and accepted by it pursuant
to Schedule 4, the Plans and Specifications, the applicable Tenant Improvement Plans, the
Construction Schedule and Applicable Law.

     (2) Borrower shall timely commence the Construction Work for the Improvements on or prior to
February 16, 2007, and shall cause Construction Completion by the Completion Date (other than Punch
List Items which shall be completed by Borrower with diligence following the Completion Date, and
Tenant Improvement Work which shall be timely completed by Borrower in accordance with the
applicable Approved Lease).

     (3) Construction Completion shall have occurred by the Completion Date.

     (4) Borrower shall not commence construction of any Construction Work, or any particular
component thereof, nor permit any tenant so to do, until Borrower or any such tenant has obtained
all Government Approvals required under Applicable Law for the commencement of construction of such
Construction Work or such component thereof, as the case may be.

     (5) Once begun, Borrower shall cause the construction of the Construction Work to be
prosecuted with diligence in accordance with the Construction Schedule, subject to Unavoidable
Delay.

     (6) Lead Borrower shall deliver to Administrative Agent, on demand, copies of all contracts,
bills of sale, statements, receipted vouchers and agreements under which Borrower claims title to
any materials, fixtures or articles incorporated in the Improvements.

     (7) Borrower shall, upon demand of Administrative Agent based upon the advice of the
Construction Consultant, correct any Unsatisfactory Work; and the advance

23

 

of any proceeds of any Loan shall not constitute a waiver of Administrative Agent’s right to
require compliance with this covenant with respect to any such Unsatisfactory Work. None of
Administrative Agent, the Lenders or the Construction Consultant shall have any affirmative duty to
Borrower or any third party to inspect for Unsatisfactory Work or other defects or to call them to
the attention of Borrower or anyone else.

     (8) Borrower shall (and shall cause each Affiliate of Borrower party thereto to):

     (a) perform and observe in all material respects all of its covenants and agreements
contained in the Construction Management Agreement, each Major Contract, each other Project
Document and each Government Approval to which it is a party or by which the Project or any
portion thereof is bound;

     (b) take all reasonable and necessary action to prevent the termination, in accordance
with the terms thereof or otherwise, of the Construction Management Agreement, any Major
Contract, any other material Project Document and any Government Approval;

     (c) enforce in accordance with its terms each material covenant or obligation set
forth in the Construction Management Agreement, each Major Contract, each other Project
Document and each Government Approval;

     (d) cause Lead Borrower to promptly give Administrative Agent copies of any default or
violation or other material notices given by or on behalf of Borrower received by or on
behalf of Borrower from any other Person under the Construction Management Agreement, any
Major Contract, any other material Project Document or any Government Approval;

     (e) promptly replace, unless it is commercially reasonable not to do so, any
defaulting contractor, subcontractor, material supplier or surety, and Lead Borrower shall
promptly deliver all required information and documents to Administrative Agent regarding
each replacement contractor, subcontractor, material supplier or surety;

     (f) if Administrative Agent in its reasonable judgment determines that one or more
elements of the Construction Work will not be completed according to the Construction
Schedule, or that the Project Completion Work will not be completed by the Completion Date,
reschedule the work of construction to permit timely completion. Within fifteen (15) days
after receiving such a request from Administrative Agent, Lead Borrower shall deliver to
Administrative Agent a revised Construction Schedule showing timely completion of such
work; and

     (g) take all such commercially reasonable action to achieve the purposes described in
clauses (a), (b), (c), (d), (e) and (f) of
this Section 9.3(7) as may from time to time be reasonably requested by
Administrative Agent.

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     (9) Lead Borrower shall deliver to Administrative Agent and the Construction Consultant copies
of all Major Contracts for Administrative Agent’s reasonable approval and all other Minor Contracts
for informational purposes entered into for the construction of the Improvements. Within twenty
(20) days after receiving a request from Administrative Agent, except to the extent previously
delivered, Lead Borrower shall deliver to Administrative Agent any and all of the following
information and documents that Administrative Agent may specify, all in forms reasonably acceptable
to Administrative Agent: (a) a current, complete and correct list showing the name and address of
each contractor, subcontractor and material supplier engaged in connection with the construction of
the Improvements, and the total dollar amount of each contract and subcontract (including any
changes) together with the amounts paid through the date of the list; (b) true and correct copies
of the most current versions of all executed contracts and Contracts identified in the list
described in clause (a) above, including any changes; (c) a construction progress schedule and
updated Permitting Schedule showing the progress of construction and the projected sequencing and
completion times for uncompleted work and for obtaining any outstanding Government Approvals, all
as of the date of the schedule; and (d) any update to any item described above, which Lead Borrower
has previously delivered to Administrative Agent. After the occurrence of an Event of Default,
Borrower expressly authorizes Administrative Agent to contact Borrower’s Architect, each
Construction Manager, any consulting engineer(s) or any contractor, subcontractor, material
supplier, surety or Governmental Authority to verify any information disclosed in accordance with
this Section.

     (10) Administrative Agent may (and if requested by the Majority Lenders, shall) commission an
Appraisal (a) upon the satisfaction of the Project Work Substantial Completion Conditions with
respect to the Improvements and (b) at any other time if required by Applicable Law or accounting
policy. Such Appraisal shall be completed at Borrower’s expense and shall be prepared by an
appraiser satisfactory to Administrative Agent.

Section 9.4 Proceedings to Enjoin or Prevent Construction.

     If any proceedings are filed seeking to enjoin or otherwise prevent or declare invalid or
unlawful all or any part of the Construction Work, Borrower, at its sole cost and expense, will
cause such proceedings to be contested in a commercially reasonable manner, and in the event of an
adverse ruling or decision, if commercially reasonable, prosecute all allowable appeals therefrom,
and will, without limiting the generality of the foregoing, resist the entry or seek the stay of
any temporary or permanent injunction that may be entered, and use its best efforts to bring about
a favorable and speedy disposition of all such proceedings.

Section 9.5 Agent’s, Lenders’ and Construction Consultant’s Actions for their Own Protection Only.

     The authority herein conferred upon Administrative Agent, the Lenders and/or the Construction
Consultant and any action taken by the same, in making inspections, procuring sworn statements and
waivers of lien, approving contracts and Contracts and

25

 

approving Plans and Specifications will be taken by such party for its or their own protection
only, and none of Administrative Agent, the Lenders or the Construction Consultant shall be deemed
to have assumed any responsibility to Borrower or any other party with respect to any such action
herein authorized or taken by Administrative Agent, the Lenders or the Construction Consultant or
with respect to the Construction Work, performance of contracts or Contracts by any contractors or
subcontractors, or prevention of claims for mechanics’ liens. Any review, investigation or
inspection conducted by Administrative Agent, the Lenders, the Construction Consultant or any other
architectural or engineering consultants retained by Administrative Agent in order to verify
independently Borrower’s satisfaction of any conditions precedent to advances under this Agreement,
Borrower’s performance of any of the covenants, agreements and obligations of Borrower under this
Agreement, or the validity of any representations and warranties made by Borrower hereunder
(regardless of whether or not the party conducting such review, investigation or inspection should
have discovered that any of such conditions precedent were not satisfied or that any such
covenants, agreements or obligations were not performed or that any such representations or
warranties were not true), shall not affect (or constitute a waiver by Administrative Agent or the
Lenders of) (a) any of Borrower’s representations, warranties or obligations under this Agreement
or Administrative Agent’s and the Lenders’ reliance thereon or right to require the performance
thereof or (b) Administrative Agent’s or the Lenders’ reliance upon any certifications of Borrower
or the Design Professionals required under this Agreement or any other facts, information or
reports furnished to Administrative Agent and/or the Lenders by Borrower hereunder.

Section 9.6 Sign and Publicity.

     If Administrative Agent requests, Borrower shall, to the extent permitted by Applicable Law,
erect a sign reasonably approved by Administrative Agent on the Project in a conspicuous location
indicating that the financing for the Project has been provided by the Lenders and that Eurohypo is
Administrative Agent for the Lenders. Borrower shall include in any public announcement or media
release concerning the general development of the Project a statement that the Lenders have
provided the financing for the Project and that Eurohypo is Administrative Agent for the Lenders.

Section 9.7 Amendment of Project Documents and Government Approvals; Change Orders.

     (1) Borrower shall not, without Administrative Agent’s reasonable prior consent:

     (a) take any action to cancel or terminate any material right under the Construction
Management Agreement, any Major Contract, any other Project Document or any Government
Approval to which it is a party;

     (b) sell, assign, pledge, transfer, mortgage, hypothecate or otherwise dispose of (by
operation of law or otherwise) or encumber any part of its interest

26

 

in the Construction Management Agreement, any Major Contract, any other Project
Document or any Government Approval;

     (c) except in accordance with prudent construction practice, waive any material
default under or breach of any material provisions of the Construction Management
Agreement, any Major Contract, any other Project Document or any Government Approval, or
waive, forgive, release or fail to enforce any material right, interest or entitlement,
howsoever arising, under or in respect of any of the foregoing, or vary or agree to the
variation in any material way of any of the foregoing or of the performance of any other
Person or Governmental Authority thereunder;

     (d) amend or modify any material provision of, or give any consent under, the
Construction Management Agreement, any Major Contract, any other Project Document or any
Government Approval (including, without limitation, the Plans and Specifications or the
Construction Schedule), including, without limitation, any amendment or modification which,
subject to Borrower’s right to make Change Orders pursuant to the provisions of subsection
(2) below, would increase or change the Budget or any Budget Line Item; or which might
adversely affect the value of the security for the Loans; or which, regardless of cost, is
a material change in structure, design or function; or which might delay completion of any
element of the Construction Work beyond the time allotted for it in the Completion
Schedule, or satisfaction of the Project Work Substantial Completion Conditions for the
Project Completion Work beyond the applicable Completion Date therefor;

     (e) petition, request or take any other legal or administrative action that seeks, or
may reasonably be expected, to rescind, terminate or suspend the Construction Management
Agreement, any Major Contract, any other Project Document or any Government Approval or
amend or modify all or any material part thereof; or

     (f) enter into, or permit the Construction Manager to enter into, any new Major
Contract (which consent shall be conditioned upon the delivery by the Major Contractor
thereunder of a Consent and Agreement).

     (2) Borrower shall obtain Administrative Agent’s and the Construction Consultant’s reasonable
approval for any Change Order that exceeds $500,000 with respect to any single change or related
group or series of changes. At such time as all Change Orders in the aggregate have exceeded
$3,000,000, Borrower shall obtain Administrative Agent’s and the Construction Consultant’s
reasonable approval for all subsequent Change Orders.

     (3) Subject to the provisions of this Section 9.7, Lead Borrower shall from time to time
promptly deliver to Administrative Agent and the Construction Consultant all Change Orders, pending
or executed, along with evidence that all Government Approvals relating thereto have been obtained,
together with any documents related

27

 

thereto, and a written description of the proposed change and related working drawings, a
written estimate of the cost of the proposed change and the time necessary to complete it and a
written explanation of the reasons therefor.

Section 9.8 Lien Law.

     Borrower, in compliance with Section 13 of the Lien Law covenants that it shall receive and
hold the advances of the Building Loans hereunder and the right to receive the same as a trust fund
for the purpose of first paying the “cost of the improvement”, as such quoted term is defined in
the Lien Law, before using any part thereof for any other purpose.

Section 9.9 Reimbursement of Expenses.

     Borrower shall pay or reimburse Administrative Agent and/or the Lenders on demand of the
applicable party to the extent provided in Section 9.28 of the Project Loan Agreement, which
section is hereby incorporated herein by reference, all of which shall constitute part of the Loans
and shall be secured by the Loan Documents.

ARTICLE 10

EVENTS OF DEFAULT

     Each of the following shall constitute an Event of Default under the Loans:

Section 10.1 Project Loan Agreement.

     An Event of Default shall occur under the Project Loan Agreement.

Section 10.2 Access to Project.

     If (a) Administrative Agent or any of the Lenders, or its representatives or the Construction
Consultant is not permitted, at all reasonable times, to enter upon the Project, inspect the
Improvements and the construction thereof and all materials, fixtures and articles used or to be
used in connection therewith, and to examine all detailed plans, shop drawings and specifications
which relate to the Improvements, or (b) Lead Borrower, the Construction Manager or a Major
Contractor shall fail to furnish to Administrative Agent, the Construction Consultant or their
authorized representatives, within a reasonable period of time after requested, copies of such
plans, drawings and specifications, or copies of any invoices, Contracts, or bills of sale relating
to the construction or equipping of the Improvements, and, in any of the foregoing cases such
default remains uncured for a period of ten (10) days after notice thereof from Administrative
Agent to Lead Borrower; provided, however, that if such default is caused as a
result of the Construction Manager or a Major Contractor, such ten (10) day period shall be
extended so long as Lead Borrower is diligently pursuing its rights and remedies to cause
compliance by the Construction Manager or such Major Contractor.

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Section 10.3 Termination/Bankruptcy of Construction Manager or a Major Contractor.

     If for any reason the Construction Management Agreement or any Major Contract is terminated or
if the Construction Manager or a Major Contractor becomes the subject of a bankruptcy proceeding,
and Borrower does not promptly (but in no event later than thirty (30) days after any such
termination or bankruptcy) replace such Construction Management Agreement or Major Contract with a
substitute construction management agreement or Major Contract, as the case may be, in each case
reasonably acceptable to Administrative Agent and from a new construction manager or contractor, as
the case may be, reasonably approved by Administrative Agent.

Section 10.4 Unsatisfactory Work.

     Borrower shall fail to cause any Unsatisfactory Work to be corrected to the reasonable
satisfaction of Administrative Agent and the Construction Consultant within ten (10) Business Days
after notice of such disapproval; provided, however, that if such Unsatisfactory
Work cannot reasonably be corrected within such ten (10) day period, then so long as Borrower shall
have commenced to cause the correction of such Unsatisfactory Work within such ten (10) day period
and thereafter diligently and expeditiously proceeds to cause the correction of the same, such ten
(10) day period shall be extended for such time as is reasonably necessary for Borrower in the
exercise of due diligence to cause the correction of such Unsatisfactory Work prior to the
Completion Date.

Section 10.5 Construction Work.

     The Construction Work (a) is not completed on or before the Completion Date, or (b) shall, at
any time, be abandoned for more than ten (10) Business Days, or discontinued for more than fifteen
(15) Business days, or a delay in the Construction Work shall occur so that the same cannot, in
Construction Consultant’s sole judgment, be completed on or before the Completion Date.

ARTICLE 11

REMEDIES

     Upon the occurrence of any Event of Default, Administrative Agent may (subject to, and in
accordance with, the provisions of Section 14.3 of the Project Loan Agreement) and, upon request of
the Majority Lenders shall, by written notice to Lead Borrower, pursue any one or more of the
remedies set forth in the Project Loan Agreement or the other Loan Documents, concurrently or
successively, it being the intent hereof that none of such remedies shall be to the exclusion of
any other.

     WHETHER OR NOT ADMINISTRATIVE AGENT OR THE LENDERS ELECT TO EMPLOY ANY OR ALL OF THE REMEDIES
AVAILABLE TO IT UPON THE OCCURRENCE OF AN EVENT OF DEFAULT, NEITHER ADMINISTRATIVE AGENT NOR ANY OF
THE LENDERS SHALL BE LIABLE FOR THE

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CONSTRUCTION OF OR FAILURE TO CONSTRUCT, COMPLETE OR PROTECT THE IMPROVEMENTS OR FOR PAYMENT
OF ANY EXPENSES INCURRED IN CONNECTION WITH THE EXERCISE OF ANY REMEDY AVAILABLE TO ADMINISTRATIVE
AGENT OR THE LENDERS OR FOR THE CONSTRUCTION OR COMPLETION OF THE IMPROVEMENTS OR FOR THE
PERFORMANCE OR NON-PERFORMANCE OF ANY OTHER OBLIGATION OF BORROWER.

ARTICLE 12

MISCELLANEOUS

Section 12.1 Notices.

     Any notice required or permitted to be given under this Agreement shall be in writing and
either shall be (a) mailed by certified mail, postage prepaid, return receipt requested, (b) sent
by overnight air courier service, (c) personally delivered to a representative of the receiving
party, or (d) sent by telecopy (provided an identical notice is also sent simultaneously by mail,
overnight courier, or personal delivery as otherwise provided in this Section 12.1) to the
intended recipient at the “Address for Notices” specified below its name on the signature pages
hereof. Any communication so addressed and mailed shall be deemed to be given on the earliest of
(1) when actually delivered, (2) on the first Business Day after deposit with an overnight air
courier service, or (3) on the third Business Day after deposit in the United States mail, postage
prepaid, in each case to the address of the intended addressee, and any communication so delivered
in person shall be deemed to be given when receipted for by, or actually received by Administrative
Agent, a Lender, Lead Borrower or Borrower, as the case may be. If given by telecopy, a notice
shall be deemed given and received when the telecopy is transmitted to the party’s telecopy number
specified above, and confirmation of complete receipt is received by the transmitting party during
normal business hours or on the next Business Day if not confirmed during normal business hours,
and an identical notice is also sent simultaneously by mail, overnight courier, or personal
delivery as otherwise provided in this Section 12.1. Any party may designate a change of
address by written notice to each other party by giving at least ten (10) days’ prior written
notice of such change of address.

Section 12.2 Amendments, Waivers, Etc.

     Any provision of this Agreement may be amended, modified supplemented or waived only in
accordance with Section 12.2 of the Project Loan Agreement.

Section 12.3 Compliance with Usury Laws.

     This Agreement shall be subject to the provisions of Section 12.3 of the Project Loan
Agreement with respect to usury laws, which section is hereby incorporated herein by reference.

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Section 12.4 Invalid Provisions.

     If any provision of any Loan Document is held to be illegal, invalid or unenforceable, such
provision shall be fully severable; the Loan Documents shall be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a part thereof; the remaining
provisions thereof shall remain in full effect and shall not be affected by the illegal, invalid,
or unenforceable provision or by its severance therefrom; and in lieu of such illegal, invalid or
unenforceable provision there shall be added automatically as a part of such Loan Document a
provision as similar in terms to such illegal, invalid or unenforceable provision as may be
possible to be legal, valid and enforceable.

Section 12.5 Approvals; Third Parties; Conditions.

     All approval rights retained or exercised by Administrative Agent and the Lenders with respect
to leases, contracts, plans, studies and other matters are solely to facilitate the Lenders’ credit
underwriting, and shall not be deemed or construed as a determination that the Lenders have passed
on the adequacy thereof for any other purpose and may not be relied upon by Borrower or any other
Person. This Agreement is for the sole and exclusive use of Administrative Agent, the Lenders, the
Lead Borrower and Borrower and may not be enforced, nor relied upon, by any Person other than
Administrative Agent, the Lenders, the Lead Borrower and Borrower. All conditions of the
obligations of Administrative Agent and the Lenders hereunder, including the obligation to make
advances, are imposed solely and exclusively for the benefit of Administrative Agent and the
Lenders, their successors and assigns, and no other Person shall have standing to require
satisfaction of such conditions or be entitled to assume that the Lenders will refuse to make
advances in the absence of strict compliance with any or all of such conditions, and no other
Person shall, under any circumstances, be deemed to be a beneficiary of such conditions, any and
all of which may be freely waived in whole or in part by Administrative Agent and the Lenders at
any time in their sole discretion.

Section 12.6 Lenders and Administrative Agent Not in Control; No Partnership.

     None of the covenants or other provisions contained in this Agreement shall, or shall be
deemed to, give Administrative Agent or any Lender the right or power to exercise control over the
affairs or management of Borrower, the powers of Administrative Agent and the Lenders being limited
to the rights to exercise the remedies referred to in the Loan Documents. The relationship between
Borrower and the Lenders is, and at all times shall remain, solely that of debtor and creditor. No
covenant or provision of the Loan Documents is intended, nor shall it be deemed or construed, to
create a partnership, joint venture, agency or common interest in profits or income between
Administrative Agent, the Lenders and Borrower. Administrative Agent and the Lenders neither
undertake nor assume any responsibility or duty to Borrower or to any other person with respect to
the Loans, the Project or the other collateral for the Loans, except as expressly provided in the
Loan Documents. Notwithstanding any other provision of the Loan Documents: (1) neither
Administrative Agent nor any Lender is, nor shall be construed as, a partner, joint venturer, alter
ego, manager, controlling person

31

 

or other business associate or participant of any kind of Borrower or any Borrower Party or
any of their respective stockholders, members, or partners, and neither Administrative Agent nor
any Lender intends to ever assume such status; (2) no Lender or Administrative Agent shall in any
event be liable for any Debts, expenses or losses incurred or sustained by Borrower or any Borrower
Party; and (3) no Lender or Administrative Agent shall be deemed responsible for or a participant
in any acts, omissions or decisions of Borrower or any Borrower Party or any of their respective
stockholders, members, or partners. Administrative Agent, the Lenders, Lead Borrower and Borrower
disclaim any intention to create any partnership, joint venture, agency or common interest in
profits or income between Administrative Agent, the Lenders, Lead Borrower and Borrower, or to
create any equity in the Project or any other collateral for the Loan in Administrative Agent or
any Lender, or any sharing of liabilities, losses, costs or expenses.

Section 12.7 Time of the Essence.

     Time is of the essence with respect to this Agreement.

Section 12.8 Successors and Assigns.

     Subject to the provisions of Sections 9.1 and 12.23 of the Project Loan Agreement, this
Agreement shall be binding upon and inure to the benefit of Administrative Agent, the Lenders, Lead
Borrower and Borrower and the respective successors and permitted assigns.

Section 12.9 Renewal, Extension or Rearrangement.

     All provisions of the Loan Documents shall apply with equal effect to each and all promissory
notes and amendments thereof hereinafter executed which in whole or in part represent a renewal,
extension, increase or rearrangement of the Loans.

Section 12.10 Waivers.

     No course of dealing on the part of Administrative Agent or any Lender, their officers,
employees, consultants or agents, nor any failure or delay by Administrative Agent or any Lender
with respect to exercising any right, power or privilege of Administrative Agent or any Lender
under any of the Loan Documents, shall operate as a waiver thereof.

Section 12.11 Cumulative Rights.

     Rights and remedies of Administrative Agent and the Lenders under the Loan Documents shall be
cumulative, and the exercise or partial exercise of any such right or remedy shall not preclude the
exercise of any other right or remedy.

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Section 12.12 Singular and Plural.

     Words used in this Agreement and the other Loan Documents in the singular, where the context
so permits, shall be deemed to include the plural and vice versa. The definitions of words in the
singular in this Agreement and the other Loan Documents shall apply to such words when used in the
plural where the context so permits and vice versa.

Section 12.13 Phrases.

     When used in this Agreement and the other Loan Documents, the phrase “including” shall mean
“including, but not limited to,” the phrases “satisfactory to any Lender” or “satisfactory to
Administrative Agent” shall mean in form and substance satisfactory to such Lender or
Administrative Agent, as the case may be, in all respects, the phrases “with Lender’s consent,”
“with Lender’s approval,” “with Administrative Agent’s consent” or “with Administrative Agent’s
approval” shall mean such consent or approval at Lender’s or Administrative Agent’s, as the case
may be, sole and absolute discretion; phrases referring to determinations or approvals to be made
“in the discretion” of Administrative Agent or any Lender shall mean such determination or approval
in the sole and absolute discretion of Administrative Agent or such Lender, and the phrases
“acceptable to Lender” or “acceptable to Administrative Agent” shall mean acceptable to Lender or
Administrative Agent, as the case may be, at such party’s sole and absolute discretion.”

Section 12.14 Exhibits and Schedules.

     The exhibits and schedules attached to this Agreement are incorporated herein and shall be
considered a part of this Agreement for the purposes stated herein.

Section 12.15 Titles of Articles, Sections and Subsections.

     All titles or headings to articles, sections, subsections or other divisions of this Agreement
and the other Loan Documents or the exhibits hereto and thereto are only for the convenience of the
parties and shall not be construed to have any effect or meaning with respect to the other content
of such articles, sections, subsections or other divisions, such other content being controlling as
to the agreement between the parties hereto.

Section 12.16 Promotional Material.

     Borrower authorizes Administrative Agent and each of the Lenders to issue press releases,
advertisements and other promotional materials in connection with Administrative Agent’s or such
Lender’s own promotional and marketing activities, and describing the Loans in general terms or in
detail and Administrative Agent’s or such Lender’s participation in the Loans. All references to
Administrative Agent or any Lender contained in any press release, advertisement or promotional
material issued by Borrower shall be approved in writing by Administrative Agent and such Lender in
advance of issuance.

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Section 12.17 Survival.

     All of the representations, warranties, covenants, and indemnities of Borrower hereunder
(including environmental matters under Article 5 of the Project Loan Agreement, the obligations
under Sections 2.7(1), 2.7(5) and 2.7(6) of the Project Loan Agreement), and under the
indemnification provisions of the other Loan Documents shall survive (a) the repayment in full of
the Loans and the release of the Liens evidencing or securing the Loans, (b) the transfer (by sale,
foreclosure, conveyance in lieu of foreclosure or otherwise) of any or all right, title and
interest in and to the Project to any party, whether or not an Affiliate of Borrower and (c) in the
case of any Lender that may assign any interest in its Commitment or Loans hereunder in accordance
with the terms of this Agreement, the making of such assignment, notwithstanding that such
assigning Lender may cease to be a “Lender” hereunder.

Section 12.18 WAIVER OF JURY TRIAL.

     BORROWER, ADMINISTRATIVE AGENT AND EACH LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE
OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN) OR ACTION OF EITHER PARTY OR ANY EXERCISE BY ANY
PARTY OF THEIR RESPECTIVE RIGHTS UNDER THE LOAN DOCUMENTS OR IN ANY WAY RELATING TO THE LOANS OR
THE PROJECT (INCLUDING, WITHOUT LIMITATION, ANY ACTION TO RESCIND OR CANCEL THIS AGREEMENT, AND ANY
CLAIM OR DEFENSE ASSERTING THAT THIS AGREEMENT WAS FRAUDULENTLY INDUCED OR IS OTHERWISE VOID OR
VOIDABLE). THIS WAIVER IS A MATERIAL INDUCEMENT FOR ADMINISTRATIVE AGENT AND EACH LENDER TO ENTER
THIS AGREEMENT.

Section 12.19 Remedies of Borrower.

     It is expressly understood and agreed that, notwithstanding any Applicable Law or any
provision of this Agreement or the other Loan Documents to the contrary, the liability of
Administrative Agent and each Lender (including their respective successors and assigns) and any
recourse of Borrower against Administrative Agent and each Lender shall be limited solely and
exclusively to their respective interests in the Loans and/or Commitments or the Project. Without
limiting the foregoing, in the event that a claim or adjudication is made that Administrative
Agent, any of the Lenders, or their agents, acted unreasonably or unreasonably delayed acting in
any case where by Applicable Law or under this Agreement or the other Loan Documents,
Administrative Agent, any Lender or any such agent, as the case may be, has an obligation to act
reasonably or promptly, or otherwise violated this Agreement or the Loan Documents, Borrower agrees
that none of Administrative Agent, the Lenders or their agents shall be liable for any incidental,
indirect, special, punitive, consequential or speculative damages or losses resulting from

34

 

such failure to act reasonably or promptly in accordance with this Agreement or the other Loan
Documents.

Section 12.20 Governing Law.

     This Agreement, the notes and the other Loan Documents shall be governed by, and construed in
accordance with the law of the State of New York, except to the extent otherwise specified in any
of the Loan Documents. The provisions of Section 12.20 of the Project Loan Agreement with respect
to submission to jurisdiction are hereby incorporated by reference and shall be applicable to this
Agreement.

Section 12.21 Entire Agreement.

     This Agreement and the other Loan Documents embody the entire agreement and understanding
between Administrative Agent, the Lenders and Borrower and supersede all prior agreements and
understandings between such parties relating to the subject matter hereof and thereof.
Accordingly, the Loan Documents may not be contradicted by evidence of prior, contemporaneous, or
subsequent oral agreements of the parties. There are no unwritten oral agreements between the
parties. If any conflict or inconsistency exists between the Commitment Letter and this Agreement
or any of the other Loan Documents, the terms of this Agreement shall control.

Section 12.22 Counterparts.

     This Agreement may be executed in multiple counterparts, each of which shall constitute an
original, but all of which shall constitute one document.

Section 12.23 Assignments and Participations by the Lenders.

     Each Lender may only assign any of its Loans, its Notes and its Commitment and sell interests
in the Loans to Participants in accordance with Section 12.23 of the Project Loan Agreement, which
section is hereby incorporated herein by reference.

Section 12.24 Brokers.

     This Agreement shall be subject to the provisions of Section 12.24 of the Project Loan
Agreement, which section is hereby incorporated herein by reference.

Section 12.25 Right of Set-off.

     Upon the occurrence and during the continuance of any Event of Default, each of the Lenders
shall have the right of set-off as provided in Section 12.25 of the Project Loan Agreement, which
section is hereby incorporated here by reference.

35

 

Section 12.26 Limitation on Liability of Administrative Agent’s and the Lenders’ Officers,
Employees, etc.

     Any obligation or liability whatsoever of Administrative Agent or any Lender which may arise
at any time under this Agreement or any other Loan Document shall be satisfied, if at all, out of
Administrative Agent’s or such Lender’s respective assets only. No such obligation or liability
shall be personally binding upon, nor shall resort for the enforcement thereof be had to, the
property of any of Administrative Agent’s or any Lender’s shareholders, directors, officers,
employees or agents, regardless of whether such obligation or liability is in the nature of
contract, tort or otherwise.

Section 12.27 Cooperation with Syndication.

     This Agreement shall be subject to the provisions of Section 12.27 of the Project Loan
Agreement with respect to usury laws, which section is hereby incorporated herein by reference.

Section 12.28 Severance of Loan.

     This Agreement shall be subject to the provisions of Section 12.28 of the Project Loan
Agreement with respect to usury laws, which section is hereby incorporated herein by reference.

Section 12.29 Confidentiality.

     This Agreement shall be subject to the provisions of Section 12.29 of the Project Loan
Agreement with respect to usury laws, which section is hereby incorporated herein by reference.

ARTICLE 13

RECOURSE LIABILITY

Section 13.1 Recourse Liability.

     This Agreement shall be subject to the provisions of Article 13 of the Project Loan Agreement,
which section is hereby incorporated herein by reference.

ARTICLE 14

ADMINISTRATIVE AGENT

Section 14.1 Appointment, Powers and Immunities.

     The provisions of Article 14 of the Project Loan Agreement are hereby incorporated by
reference, including, without limitation, Administrative Agent’s powers and immunities, reliance,
obligations with respect to Defaults, rights as a Lender, right to

36

 

indemnification by the Lenders, non-reliance by the Lenders, failure to act, resignation,
authorization and remedies with respect to Defaulting Lenders.

ARTICLE 15

CASH MANAGEMENT

Section 15.1 Cash Management.

     This Agreement shall be subject to the provisions of Article 15 of the Project Loan Agreement,
which article is hereby incorporated herein by reference.

ARTICLE 16

CONTROLLED ACCOUNTS

Section 16.1 Controlled Accounts.

     This Agreement shall be subject to the provisions of Article 15, which article is hereby
incorporated herein by reference.

[Signature Pages Follow]

37

 

     EXECUTED as of the date first written above.

	 	 	 	 	 
	BORROWER:	ACADIA-PA EAST FORDHAM
 ACQUISITIONS, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	Robert Masters 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	Address for Notices:

c/o Acadia Realty Trust

1311 Mamaroneck Avenue,

Suite 260

White Plains, NY 10605

Attention: Robert Masters

Telecopier No.: 914-428-3646

FORDHAM PLACE OFFICE, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	Robert Masters 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	Address for Notices:

c/o Acadia Realty Trust

1311 Mamaroneck Avenue,

Suite 260

White Plains, NY 10605

Attention: Robert Masters

Telecopier No.: 914-428-3646
 	 

38

 

	 	 	 	 	 

	 	 	 	 	 
	LENDER: 	EUROHYPO AG, NEW YORK BRANCH,

as Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Address for Notices to Eurohypo
AG, New
York Branch:

Eurohypo AG, New York Branch

1114 Avenue of the Americas,

29th Floor

New York, New York 10036

Attention: Legal Director

Telecopier No.: 866 267 7680

With copies to:

Eurohypo AG, New York Branch

1114 Avenue of the Americas,

29th Floor

New York, New York 10036

Attention: Head of Portfolio
Operations

Telecopier No.: 866 267 7680

— and —

Riemer & Braunstein LLP

Times Square Tower, Suite 2506

Seven Times Square

New York, New York 10036

Attention: Steven J. Weinstein, Esq.

Telecopier No.: (617) 692-3503
 	 
	 	 	 

39

 

	 	 	 	 	 

	 	 	 	 	 
	ADMINISTRATIVE AGENT: 	EUROHYPO AG, NEW YORK BRANCH,

as Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Address for Notices to Eurohypo
 AG, New
York Branch:

Eurohypo AG, New York Branch

1114 Avenue of the Americas,

29th Floor

New York, New York 10036

Attention: Legal Director

Telecopier No.: 866 267 7680

With copies to:

Eurohypo AG, New York Branch

1114 Avenue of the Americas,

29th Floor

New York, New York 10036

Attention: Head of Portfolio
 Operations

Telecopier No.: 866 267 7680

— and —

Riemer & Braunstein LLP

Times Square Tower, Suite 2506

Seven Times Square

New York, New York 10036

Attention: Steven J. Weinstein, Esq.

Telecopier No.: (617) 692-3503
 	 
	 	 	 

40

 

	 	 	 	 	 

	 	 	 	 	 	 	 
	STATE OF NEW YORK

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.:
	COUNTY OF NEW YORK

	 	 	)	 	 	 

     On the             day of                                          in the
 year 2007, before me, the undersigned, a notary
public in and for said state, personally appeared Robert Masters, personally known to me or proved
to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his capacity, and that by his
signature on the instrument, the individual, or the person upon behalf of which the individual
acted, executed the instrument.

	 	 	 	 	 
	 

	 	 

Notary Public
	 	 

	 	 	 
	My commission expires:
	 	 
	 
	 	 
	 
	 	 
	 

	 	 

41

 

	 	 	 	 	 	 	 
	STATE OF NEW YORK

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.:
	COUNTY OF NEW YORK

	 	 	)	 	 	 

     On the                      day of                                          in the
 year 2007, before me, the undersigned, a notary
public in and for said state, personally appeared                                         , personally known to me or
proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to
the within instrument and acknowledged to me that he executed the same in his capacity, and that by
his signature on the instrument, the individual, or the person upon behalf of which the individual
acted, executed the instrument.

	 	 	 	 	 
	 

	 	 

Notary Public
	 	 

	 	 	 
	My commission expires:
	 	 
	 
	 	 
	 
	 	 
	 

	 	 

	 	 	 	 	 	 	 
	STATE OF NEW YORK

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.:
	COUNTY OF NEW YORK

	 	 	)	 	 	 

     On the                      day of                                          in the
 year 2007, before me, the undersigned, a notary
public in and for said state, personally appeared                                         , personally known to me or
proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to
the within instrument and acknowledged to me that he executed the same in his capacity, and that by
his signature on the instrument, the individual, or the person upon behalf of which the individual
acted, executed the instrument.

	 	 	 	 	 
	 

	 	 

Notary Public
	 	 

	 	 	 
	My commission expires:
	 	 
	 
	 	 
	 
	 	 
	 

	 	 

42

 

SCHEDULE 1

BUILDING LOAN COMMITMENTS

	 	 	 	 	 
	Lender	 	Commitment
	Eurohypo AG, New York Branch
	 	$	75,339,243.00	 
	 
	 	$	 	 
	Total
	 	$	75,339,243.00	 

 

 

SCHEDULE 1.1(37)

PLANS AND SPECIFICATIONS

General Description

	 	•	 	Base building construction drawings by Greenberg Farrow dated August 1, 2007 as follows:

	 	•	 	Site
	 
	 	•	 	Architectural
	 
	 	•	 	Structural
	 
	 	•	 	Mechanical
	 
	 	•	 	Electrical
	 
	 	•	 	Plumbing
	 
	 	•	 	Fire Protection

	 	•	 	Base Building specifications by Greenberg Farrow as follows:

	 	•	 	Divisions 100 through 12000 dated January 5, 2007
	 
	 	•	 	Division 14000 dated January 19, 2007
	 
	 	•	 	Division 15000 dated April 16, 2007
	 
	 	•	 	Division 16000 dated December 29, 2006

	 	•	 	Sears tenant construction drawings dated August 22, 2007

	 	•	 	Sears tenant specifications dated August 1, 2007

Detailed Description

See Attached

 

 

SCHEDULE 1.1(41)

PROJECT DOCUMENTS

	1.	 	Plans and Specifications
	 
	2.	 	The Borrower’s Architect’s Agreement
	 
	3.	 	Construction Management Agreement
	 
	4.	 	Engineering Agreements.
	 
	5.	 	Major Contracts.
	 
	6.	 	Minor Contracts.
	 
	7.	 	Government Approvals.
	 
	8.	 	Construction Schedule.
	 
	9.	 	Consents and Acknowledgements from Construction Manager, Architect, Engineer and Major
Contractors.
	 
	10.	 	Design Professionals’ Certificates.
	 
	11.	 	ALTA Survey.
	 
	12.	 	Site Plan.

 

 

SCHEDULE 4

ADVANCE CONDITIONS

Part A — Initial Advance

Part B — General Conditions

Part C — Conditions to Final Loans

 

 

PART A. CONDITIONS PRECEDENT TO EFFECTIVENESS OF BUILDING LOAN COMMITMENTS AND TO INITIAL BUILDING
LOANS.

     The effectiveness of the Building Loan Commitments and the obligation of the Lenders to make
the initial Building Loans are subject Administrative Agent’s receipt, review, approval and/or
confirmation of the following, at Borrower’s cost and expense, each in form and content
satisfactory to Administrative Agent in its sole discretion (such conditions not to be duplicative
to the extent they are the same matters required as conditions precedent to the effectiveness of
the Acquisition Loans and Project Loans under the Project Loan Agreement):

ORGANIZATIONAL AND AUTHORIZATION DOCUMENTS; OPINIONS; OTHER DOCUMENTATION RELATING TO BORROWER,
BORROWER PARTIES AND OTHER PERSONS

     1. All documents evidencing the formation, organization, valid existence, good standing of and
for Borrower and each Borrower Party, and the authorization, execution, delivery and performance of
the Loan Documents and Project Documents by Borrower and each Borrower Party, including a certified
organizational chart for Borrower and Borrower Parties.

     2. Legal opinions issued by counsel for Borrower and each Borrower Party, opining as to the
due organization, valid existence and good standing of Borrower and each Borrower Party; as to the
due authorization, execution, delivery, enforceability and validity of the Loan Documents with
respect to Borrower and each Borrower Party (and including opinions with respect to
non-contravention, perfection, choice of law, usury and non-consolidation); and as to such matters
concerning the zoning and entitlements for the Project, compliance with Applicable Law (including
the Affordable Housing Requirements) and such other matters as Administrative Agent and
Administrative Agent’s counsel reasonably may specify.

     3. Current Uniform Commercial Code searches, and litigation, bankruptcy and judgment reports,
as requested by Administrative Agent, with respect to Borrower and Borrower Parties.

     4. Copies of the most recent financial statements of Borrower certified by an officer of the
Borrower and each Borrower Party, if applicable, and copies of the most recent audited annual
financial statement of Guarantor, and certificates dated the Closing Date and signed by an
Authorized Officer of Borrower and each Borrower Party stating that (i) such financial statements
are true, complete and correct and (ii) no change shall have occurred in the financial condition of
Borrower or any Borrower Party which would have a Material Adverse Effect on the Project, or on
Borrower’s or any Borrower Party’s ability to repay the Loans or otherwise perform its obligations
under the Loan Documents. Further, there shall not exist any material default by Borrower or any
Borrower Party under any loan, financing or similar arrangement with any lender.

     5. Satisfactory financial review and background checks (including such background checks as
deemed necessary by Administrative Agent and Lenders to comply with the Patriot Act) of Borrower
and Borrower Parties.

     6. Opening balance sheet for Borrower.

 

 

LOAN DOCUMENTS; CLOSING CERTIFICATES; APPRAISAL

     7. The Loan Documents, executed by Borrower and, as applicable, each Borrower Party.

     8. A certificate of an Authorized Officer of Borrower, dated as of the Closing Date,
certifying that: (i) the representations and warranties of Borrower and each Borrower Party
contained in the Loan Documents are true and correct in all material respects on and as of such
date as if made on and as of such date (or, if stated to have been made solely as of an earlier
date, were true and correct in all material respects as of such date), and (ii) no Potential
Default or Event of Default has occurred and is continuing on such date.

     9. An Appraisal, such that the aggregate amount of the Commitments shall not exceed seventy
percent (70%) of the aggregate value of the Project. The Appraisal shall run in favor of “Eurohypo
AG, New York Branch or its designee, as Administrative Agent on behalf of the lenders in its
lending syndicate from time to time, and the successors and assigns of each of the foregoing, all
of whom may rely thereon.”

TITLE; SURVEY

     10. An ALTA policy or policies of title insurance satisfactory to Administrative Agent
(collectively, the “Building Loan Title Policy”), issued by the Title Insurer together with
evidence of the payment of all premiums due thereon, (a) insuring Administrative Agent for the
benefit of the Lenders, in an amount equal to the aggregate amount of the Building Loan
Commitments, that Borrower is lawfully seized and possessed of a valid and subsisting fee simple
interest in the Land and Improvements and that the Building Loan Mortgage constitutes a valid fee
simple mortgage on the Land and Improvements subject to no Liens other than the Permitted
Encumbrances applicable thereto and (b) providing (i) affirmative insurance or endorsements for
coverage against all mechanics’ and materialmen’s liens, (ii) a pending disbursements clause, and
(iii) such other affirmative insurance, endorsements and reinsurance as Administrative Agent may
require. The form of the Building Loan Title Policy and all endorsements thereto shall be approved
by Administrative Agent in its sole discretion. The Building Loan Title Policy shall name as the
insured “Eurohypo AG, New York Branch or its designee, as Administrative Agent on behalf of the
lenders in its lending syndicate from time to time, and the successors and assigns of each of the
foregoing, all of whom may rely thereon”.

     11. A survey of the Project (the “Survey”) in form and content, and prepared by a
registered land surveyor, satisfactory to Administrative Agent. The Survey shall be certified to
“Eurohypo AG, New York Branch or its designee, as Administrative Agent on behalf of the lenders in
its lending syndicate from time to time, and the successors and assigns of each of the foregoing,
all of whom may rely thereon” in accordance with a surveyor’s certificate in form and substance
satisfactory to Administrative Agent.

     12. Evidence that all of the land parcels required to develop the Project per the final Plans
and Specifications are owned by Borrower and are encumbered by the Building Loan Mortgage and
insured by the Building Loan Title Policy.

 

 

INSURANCE

     13. A certified copy of, or certificates of insurance with respect to, the insurance policies
required under Section 3.1(1) of this Agreement (inclusive of the insurance policies
required under Schedule 3.1(1)(J)), together with evidence of the payment of all premiums
therefor.

GOVERNMENT APPROVALS; COMPLIANCE WITH LAW

     14. Originals (or copies certified by an Authorized Officer of Borrower to be true copies) of
all Government Approvals referred to in the Permitting Schedule, other than those expressly
provided for in said Schedule to be obtained at a later time (together with, if requested by
Administrative Agent, an opportunity to review (or certified copies of) all correspondence referred
to in such Government Approvals and all applications for such Government Approvals).

     15. Evidence satisfactory to Administrative Agent of final approval from Borrower’s Architect
and the New York City Department of Buildings of Project design and specifications.

     16. Evidence satisfactory to Administrative Agent that the Land is and, upon completion
thereof, the Improvements will be in compliance with all Applicable Law and any applicable
covenants, conditions and restrictions affecting the Land.

     17. Receipt, review and acceptance by the administrative Agent of (i) a Phase I report and
Phase II report, if applicable, for the Project.

PROJECT DOCUMENTS; CONSENTS AND AGREEMENTS; GOVERNMENT APPROVALS

     19. True and correct copies of each of the Project Documents (including all amendments
thereto), certified as such by an Authorized Officer of Borrower, together with evidence that (a)
each of the Project Documents has been duly executed and delivered by each Person that is a party
thereto and is in full force and effect; (b) neither Borrower nor, to the best of Borrower’s
knowledge, any other Person which is party to any of the Project Documents, is in default
thereunder beyond any applicable cure and notice periods; (c) no term or condition thereof shall
have been amended, modified or waived without the prior consent of Administrative Agent. The form
and substance of each of the Project Documents shall be satisfactory to Administrative Agent.

     20. A true and correct copy of the Construction Management Agreement certified as such by an
Authorized Officer of Borrower and evidence that no term or condition of such contract shall have
been modified and/or waived without the prior consent of Administrative Agent, together with
financial statements for the Construction Manager. The form and substance of the Construction
Management Agreement, and the financial statements of the Construction Manager, shall be
satisfactory to Administrative Agent.

     21. A certificate of the Construction Manager in favor of Administrative Agent (on behalf of
the Lenders) certifying that the Construction Schedule and the Budget (as its relates to

 

 

Hard Costs) are realistic and can be adhered to in completing the Construction Work for the
Improvements in accordance with the Plans and Specifications.

     22. A true and correct copy of Borrower’s Architect Agreement certified as such by an
Authorized Officer of Borrower and evidence that no term or condition of Borrower’s Architect
Agreement shall have been modified, amended, supplemented and/or waived without the prior consent
of Administrative Agent. The form and substance of Borrower’s Architect Agreement shall be
satisfactory to Administrative Agent.

     23. A schedule of the identity of the Major Contractors for the Improvements representing at
least eighty percent (80%) of the cost of the completion of the Project Completion Work for the
Improvements (including the Major Contracts for the mechanical, electrical and plumbing work and
any other Major Contractors deemed reasonably appropriate by Administrative Agent), and copies of
the executed Major Contracts entered into with such Major Contractors and all modifications,
amendments and/or supplements thereto with respect thereto, together with a certificate of an
Authorized Officer of Borrower certifying that (A) the copies of the Major Contracts attached to
such certificate are true, correct and complete in all respects; (B) such Major Contracts attached
to such certificate are in full force and effect; and (C) neither Borrower, nor the Construction
Manager nor the applicable Major Contractor is in default thereunder. The form and substance of
the Major Contract shall be satisfactory to Administrative Agent.

     24. Evidence satisfactory to the Administrative Agent that the Project is eligible to obtain
and receive a partial exemption of real property taxes for the Improvements for a twenty-five (25)
year period under the Industrial and Commercial Incentive Program, as of right.

     25. If any Construction Work has been commenced prior to the Closing Date, (a) the most recent
Construction Manager’s progress payment request showing the percentage of completion, the amount
funded and Change Order status and (b) sworn partial waivers of liens covering all work and
materials performed or supplied prior to the Closing Date from all contractors, subcontractors,
materialmen, suppliers and other vendors.

     26. Certificates of Borrower’s applicable Design Professionals (such certificates to be
limited to the portion of the Construction Work for which the respective Design Professional is
responsible) in favor of Administrative Agent (on behalf of the Lenders), or other evidence
satisfactory to Administrative Agent, that (a) the Plans and Specifications for the Improvements
are in full compliance with all Applicable Law; (b) the Plans and Specifications for the
Improvements are full and complete in all respects and contain all details necessary for
construction of the Project Completion Work for the Improvements; (c) all Government Approvals to
the extent necessary for construction of the Project Completion Work for the Improvements have been
issued; (d) the gross square footage of the Improvements as shown on a schedule attached to the
certificate of the applicable Design Professional accurately reflects the gross square footage of
the improvements contemplated by the Plans and Specifications for the Improvements; (e) there exist
with respect to the Project adequate water, storm and sanitary sewage facilities and other required
public utilities, together with a means of ingress and egress to and from the Project over public
streets; and (f) the Construction Schedule and the Budget for

 

 

the Improvements are realistic and can be adhered to in completing the Project Completion Work
for the Improvements in accordance with the Plans and Specifications therefor.

PLANS AND SPECIFICATIONS; BUDGET; CONSTRUCTION SCHEDULE; REPORTS AND STUDIES

     27. Receipt, review, and approval by Administrative Agent and the Construction Consultant of
the final Plans and Specifications for the Improvements, including any Construction, architectural
and engineering drawings, sealed by the applicable Design Professionals.

     28. The delivery by the Construction Consultant to Administrative Agent of the Construction,
Cost and Plan Review in form and substance satisfactory to Administrative Agent.

     29. The Budget as approved by Administrative Agent, which shall include all Project Costs for
the Improvements and shall be sufficient to complete the Improvements and carry the Project through
the Maturity Date based on the final Plans and Specifications. The Budget shall be such that the
aggregate amount of the Commitments shall not exceed eighty percent (80%) of the aggregate Project
Costs for the entire Project reflected on the Budget. To the extent that the Commitments would
exceed any of the limits described in this section, they shall be automatically reduced to an
amount not in excess of the limits described in this section.

     30. The Construction Schedule, together with (if any Construction Work has been commenced
prior to the Closing Date) evidence satisfactory to Administrative Agent that the development of
the Construction Work is proceeding in accordance with the Construction Schedule and the Budget.

     31. Receipt, review, and acceptance by Administrative Agent of (i) Site Assessments relating
Project; (ii) seismic studies showing a probable maximum loss of less than 20% for the Project; and
(iii) soils reports, engineering reports, geotechnical reports and other reports and studies in
each case as required by Administrative Agent and prepared in accordance with Administrative
Agent’s scope and by consultants engaged by Administrative Agent or, if consented to by
Administrative Agent, engaged by Borrower with reliance rights with respect to such reports and
studies expressly granted in writing to Administrative Agent and its on behalf of the Lenders and
the respective successors and assigns of each of the foregoing. All such reports and studies shall
be in a form approved by Administrative Agent, and shall be certified to Administrative Agent (on
behalf of the Lenders and their successors and assigns) in a form reasonably requested by
Administrative Agent which may include certification to additional participants, co-lenders and/or
investors. Such reports and studies shall run in favor of “Eurohypo AG, New York Branch or its
designee, as Administrative Agent on behalf of the lenders in its lending syndicate from time to
time, and the successors and assigns of each of the foregoing, all of whom may rely thereon”.

PAYMENT OF INITIAL EQUITY CONTRIBUTION, FEES, EXPENSES AND COSTS

     32. There shall have been made by Borrower unreimbursed equity contributions to the Project in
an aggregate amount equal to the Initial Equity Contribution, and Borrower shall have delivered to
Administrative Agent evidence satisfactory to it that Borrower has made such

 

 

contributions, including, without limitation, a certificate of an Authorized Officer of
Borrower certifying thereto and itemizing the uses of the such contributions, such certificate to
be accompanied by backup materials documenting the amount of such contributions and the use of
same; provided, however, the Administrative may, in its sole discretion, waive this requirement for
the closing of the Loan, as long as such requirement is satisfied prior or contemporaneously with
the initial advance of proceeds of the Loan.

     33. Payment to Administrative Agent in accordance with the Fee Letters of the upfront fee and
arrangement fee described therein, together with the initial annual payment of the Agency Fee and
the final payment of the Unused Commitment Fee for the Commitments in accordance with Section
2.71(1) of this Agreement.

     34. Payment of all fees and commissions payable to real estate brokers, mortgage brokers, or
any other brokers or agents in connection with the Loans, such evidence to be accompanied by any
waivers or indemnifications deemed necessary by Administrative Agent.

     35. Payment of Administrative Agent’s costs and expenses in underwriting, documenting, and
closing the transaction, including fees and expenses of Administrative Agent’s inspecting
engineers, consultants, and outside counsel.

     36. Payment of all expenses and premiums in connection with the issuance of the Building Loan
Title Policy and all recording charges, mortgage taxes and filing fees payable in connection with
recording the Building Loan Mortgage and the filing of the Uniform Commercial Code financing
statements related thereto in the appropriate offices.

     37. Payment of any due and payable real estate taxes and assessments with respect to the
Project remaining unpaid on the Closing Date.

LEASES:

     38. Receipt, review, and acceptance by Administrative Agent of (i) the leases with Existing
Tenants, and (ii) for each of the leases with Existing Tenants, (1) written estoppels in form and
substance reasonably satisfactory to Administrative Agent, executed by tenants under the leases
with Existing Tenants and confirming the term, rent, and other provisions and matters relating to
the leases and (2) written subordination and attornment agreements, in form and substance
satisfactory to Administrative Agent, executed by Existing Tenants, whereby, among other things,
such tenants subordinate their interest in the Project to the Loan Documents and agree to attorn to
Administrative Agent (on behalf of the Lenders) and its successors and assigns upon foreclosure or
other transfer of the Project after an Event of Default.

     39. Evidence satisfactory to Administrative Agent that, as of the Closing Date, the aggregate
fixed minimum rent of the retail leases shall be no less than $5,150,000.

OTHER

     40. Such other documents or items as Administrative Agent or its counsel reasonably may
require, including, without limitation the delivery of such documents or items as may be indicated
on a closing checklist distributed to Borrower by Administrative Agent or its counsel.

 

 

     41. No material change shall have occurred in the financial markets which would have, in
Administrative Agent’s judgment, a material adverse affect on the Project or any obligor’s ability
to repay the Loans or otherwise perform its obligations under the Loan Documents.

     42. Evidence that the other conditions set forth in Article 4 have been satisfied.

     43. Evidence that all of the conditions precedent to the effectiveness of the initial
Acquisition Loans and Project Loans under the Project Loan Agreement shall have been satisfied.

     44. Notwithstanding anything to the contrary contained herein, in no event shall the initial
disbursement of the Loans occur prior to the Closing Date.

 

 

PART B. GENERAL CONDITIONS TO ALL BUILDING LOANS

     The obligation of the Lenders to make any Loans shall be subject to Administrative Agent’s
receipt, review, approval and/or confirmation of the following, each in form and content
satisfactory to Administrative Agent in its sole discretion (such conditions not to be duplicative
to the extent they are the same matters required as conditions precent to the effectiveness of the
Acquisition Loans and/or Project Loans that are being advanced concurrently therewith under the
Project Loan Agreement):

     1. There shall exist no Potential Default or Event of Default (both before and after giving
effect to the requested advance).

     2. The representations and warranties contained in this Agreement and in all other Loan
Documents shall be true and correct in all material respects on and as of the date of the making of
such Loan with the same force and effect as if made on and as of such date.

     3. Such advance shall be secured by the Building Loan Mortgage and the other Security
Documents, subject only to the Permitted Encumbrances, as evidenced by a Date Down Endorsement
satisfactory to Administrative Agent.

     4. Borrower shall have paid Administrative Agent’s costs and expenses in connection with such
advance (including title charges and attorneys’ fees and expenses).

     5. No change shall have occurred in the financial condition of Borrower or any Borrower Party
or in the Project which would have a Material Adverse Effect.

     6. No proceeding with respect to condemnation, adverse possession, zoning change or usage
change proceeding shall have occurred or shall have been threatened against the Project the Project
shall not have suffered any damage by fire or other casualty which has not been repaired or is not
being restored in accordance with this Agreement; no Applicable Law or injunctive proceeding,
restriction, litigation, action, citation or similar proceeding or matter shall have been enacted,
adopted, or threatened by any Governmental Authority, which would have, in Administrative Agent’s
judgment, a material adverse effect on the Project or Borrower’s or any Borrower Party’s ability to
perform its obligations under the Loan Documents.

     7. The Construction Work (or such part thereof as may have been constructed at the time of any
borrowing) shall have been constructed substantially in accordance with the Plans and
Specifications and the Construction Schedule (as each may have been modified in accordance with
this Agreement) and all applicable Government Approvals; and there shall exist no Unsatisfactory
Work.

     8. The Construction Consultant shall have reviewed and approved the disbursement requested in
the Request for Loan Advance delivered by Lead Borrower with respect to such Loan. Such Request
for Loan Advance shall include copies of all documents, contracts, invoices, bills, construction
records, lien waivers, Change Orders, and drawings, plans and specifications as the Construction
Consultant shall reasonably require, to enable the Construction Consultant to timely review each
Request for Loan Advance.

 

 

     9. Borrower shall have provided the Construction Consultant, Administrative Agent and the
Lenders, or their representatives, prompt and reasonable access to the Project, in order to inspect
the Construction Work then completed.

     10. Administrative Agent shall have received the following items in connection with each Loan:

     (a) A Request for Loan Advance as provided in Section 2.1(2) and Sections
2.6(4) and 4.2 of the Project Loan Agreement duly executed by an Authorized Officer of Lead
Borrower, together with the required attachments thereto;

     (b) Such invoices, contracts and other supporting data as Administrative Agent may
reasonably require to evidence that all Project Costs for which disbursement of Building
Loans is sought have been incurred and are then due and payable;

     (c) Except for Liens insured against pursuant to the Building Loan Title Policy, (i)
sworn unconditional waivers of lien from contractors, subcontractors, materialmen, suppliers
and vendors, covering all work for which funds have been advanced pursuant to a prior
disbursement and (ii) at Administrative Agent’s election, sworn conditional waivers of lien
from contractors, subcontractors, materialmen, suppliers and vendors, covering all work of
such Persons for which funds are being advanced pursuant to the then current Request for
Loan Advance, all in compliance with the Lien Law;

     (d) Copies of any Change Orders which have not been previously furnished to
Administrative Agent and the Construction Consultant, all of which shall be subject to
Administrative Agent’s review and approval in accordance with this Agreement;

     (e) Copies of all Contracts and purchase orders which have been executed or modified,
amended and/or supplemented since the last Loan, together with (i) a certificate by an
Authorized Officer of Lead Borrower certifying that the delivered items are true, accurate
and complete copies of the originals thereof, and (ii) Consents and Agreements in the
applicable form attached to the General Assignment from each Major Contractors who has
entered into a Major Contract but has not previously delivered a Consent and Agreement;

     (f) Inventory of materials and equipment stored on the Project and evidence that
Borrower has complied with all of the requirements of Section 4.8 relating to such
stored materials;

     (g) Copies of all Government Approvals (to the extent required as of such date) not
previously delivered to Administrative Agent, certified by an Authorized Officer of
Borrower;

     (h) If any material dispute arises between or among Borrower, the Construction Manager
or any Major Contractor, a written summary of the nature of such dispute;

 

 

     (i) If the Budget shall have been modified, copies of all such modifications, all of
which shall be subject to Administrative Agent’s review and approval in accordance with this
Agreement;

     (j) Copies of all amendments to the Construction Schedule not previously delivered to
Administrative Agent, all of which shall be subject to Administrative Agent’s review and
approval in accordance with this Agreement;

     (k) Promptly after the completion of the construction of the foundation or other
support elements for the Construction Work, Lead Borrower shall provide to Administrative
Agent a current survey of the Land showing all improvements located thereon and complying
with the requirements set forth in Part A, paragraph 11 and shall obtain a
foundation endorsement to the Building Loan Title Policy in form satisfactory to
Administrative Agent insuring that all foundations and other support elements are located
within applicable property and setback lines and do not encroach upon any easements or
rights of way; and

     (l) To the extent not previously delivered to Administrative Agent, evidence showing
compliance with the insurance provisions of Section 3.1.

     11. All of the conditions set forth in Part A above shall remain satisfied and all
applicable conditions in Article 4 shall have been satisfied, including the application of
all Operating Revenues in accordance with Section 4.6.

     12. Evidence that all of the conditions precedent to the effectiveness of a Project Loan under
the Project Loan Agreement shall have been satisfied; provided, however, Items 3, 10(a) and 10(b)
of Schedule 4 — Part B of the Project Loan Agreement need not be satisfied if no Project Loan is
being advanced at such time.

     13. The Loans shall be In Balance, and all material actions required to have been undertaken
or obtained prior to the date of such disbursement pursuant to the Permitting Schedule and the
Marketing Plan and Schedule shall have been undertaken or obtained as applicable.

     14. Operating Revenues shall have been applied in accordance with Section 4.1(1) and
Section 4.6(1) of the Project Loan Agreement.

     15. To the extent not previously delivered to Administrative Agent, Lead Borrower shall
provide evidence of the payment of all costs, expenses and other charges covered by previous
Requests for Loan Advances for which advances of Loans have previously been made.

     16. Administrative Agent has reasonably determined withholding such disbursement in whole or
in part is not required by the Lien Law.

     17. Such other documents and items as Administrative Agent may reasonably request.

 

 

PART C. CONDITIONS TO THE FINAL BUILDING LOANS FOR PROJECT COMPLETION WORK

     The obligation of the Lenders to make the final Building Loans to Borrower for Project
Completion Work with respect to the Improvements is subject to the further condition precedent that
all of the following requirements (collectively, the “Project Work Substantial Completion
Conditions”) shall have been completed to the reasonable satisfaction of Administrative Agent:

     1. Administrative Agent and the Construction Consultant (except in the case of clauses
(b) and (h) below) shall have received the following items in connection with the final
Loans for such Project Completion Work:

     (a) Evidence of the approval by the applicable Governmental Authorities of such Project
Completion Work to the extent any such approval is a condition of the lawful use of such
Project Completion Work, including, without limitation, valid certificates of occupancy;

     (b) A final as-built survey covering such Project Completion Work and any paving,
driveways and exterior improvements and otherwise in compliance with Schedule 4 —
Part A, paragraph 11, together with endorsements to the Title Policies which are
satisfactory to Administrative Agent and which describe the Improvements located on the
Project (CLTA 116 series), insure the lien-free completion of the Improvements (CLTA 101
series, as required by Administrative Agent), insure that there are no encroachments or
violations of any recorded covenants, conditions or restrictions affecting the Project (CLTA
100 series), and amend any survey exception to reflect the final as-built survey;

     (c) A full and complete certified set of “as built” Plans and Specifications for such
Work;

     (d) Unconditional waivers of lien and sworn statements from all contractors,
subcontractors, materialmen, suppliers and vendors with respect to such Project Completion
Work, in each case in compliance with the Lien Law;

     (e) Certificates from the applicable Design Professionals (such certificates, except in
the case of Borrower’s Architect, to be limited to the portion of such Project Completion
Work for which the respective Design Professional was responsible) stating that, to the best
of such Design Professional’s knowledge, (i) such Project Completion Work (A) has been
substantially completed in accordance with the Plans and Specifications, (B) is structurally
sound (the certification as to structural soundness to be made by the structural engineer
only) and (C) is available for occupancy, delivery to an applicable tenant for performance
of tenant work (subject to completion of Punch List Items), and (ii) such Project Completion
Work as so completed complies with all applicable building codes;

     (f) Statement from the testing engineer performing construction materials testing
indicating that such Project Completion Work was performed according to the Plans and
Specifications;

 

 

     (g) Violation searches, if available and reasonably requested by Administrative Agent,
with Governmental Authorities indicating no notices of violation have been issued with
respect to such Project Completion Work;

     (h) Current searches of all Uniform Commercial Code financing statements filed with the
Secretary of State of the state of formation/organization of Borrower and the office of the
Recorder of Bronx County, New York, showing that no Uniform Commercial Code financing
statements are filed or recorded against Borrower in which the collateral is personal
property or fixtures located on the Project or used in connection with the Project other
than financing statements with respect to the Loans;

     (i) A certificate of an Authorized Officer of Borrower certifying that:

     (i) no condemnation of any portion of the Project or any action which could
result in a relocation of any roadways abutting the Project or the denial of access,
which, in Administrative Agent’s sole judgment, adversely affects the Lenders’
security or the operation of the Project, has commenced or, to the best of
Borrower’s knowledge, is contemplated by any Governmental Authority;

     (ii) all fixtures, attachments and equipment necessary for the operation of the
Project Completion Work have been installed or incorporated into the Project and are
operational and in good working order, free from defects; all guarantees and
warranties have been transferred/assigned to Borrower; and Borrower is the absolute
owner of all of said property free and clear of all Liens; and

     (iii) all Project Costs relating to such Project Completion Work have been paid
in full except (A) to the extent covered by the final Loans then being requested,
and (B) amounts for Hard Costs which Borrower is disputing in good faith and with
due diligence; provided that Administrative Agent may, in its sole discretion, hold
back an amount equal to (x) 150% of the disputed amount minus (y) any Retainage that
Administrative Agent is still holding with respect to the applicable Hard Costs, and
(C) amounts held by Administrative Agent with respect to Punch List Items with
respect to the applicable Hard Costs.

     (j) Evidence that all of the Government Authorizations required to be obtained by such
time in accordance with the Permitting Schedule have been obtained.

     (k) All on-site and off-site work has been completed.

     2. At Borrower’s expense, an engineering report from a licensed professional engineer,
satisfactory in form and content to Administrative Agent, which shall (a) comment on the structural
soundness of the Project, seismic resistance, quality and remaining economic life of the roof, HVAC
and improvements and (b) verify that the Project Completion Work has been completed in accordance
with the Plans and Specifications, approved by the appropriate Governmental Authorities and that
the Project, and the Improvements constructed thereon, satisfy all Applicable Law.

 

 

     3. Administrative Agent shall have received written certification from the Construction
Consultant that (a) such Project Completion Work has been substantially completed in accordance
with the Plans and Specifications, subject to completion of Punch List Items (as to which, if
incomplete on the date of the final disbursement of a Loan for Work, Administrative Agent may, in
its sole discretion, hold back an amount equal to (a) 150% of the estimated cost of completing such
Punch List Items from the final disbursement minus (b) any Retainage that Administrative Agent is
still holding with respect to the applicable Punch List Items, such amount to be advanced to Lead
Borrower on completion of such Punch List Items and the satisfaction of the requirements of
Section 4.2 with respect to Retainage, which Borrower shall diligently complete) and (b)
the deliveries required in paragraphs 1 and 2 above shall have been received and
approved by Administrative Agent.

 

 

SCHEDULE 7.3

TENANT IMPROVEMENT WORK

Best Buy — Turn Key

	 	•	 	Full buildout according to tenants plans.

Sears — Turn Key

	 	•	 	Full buildout according to tenants plans.

24-Hour — Cold Dark Shell

	 	•	 	Provide demising walls and all utilities not stubbed to the space. Utilities are on
each floor and tenant will connect themselves. We tell them where utilities are located.

Walgreen’s — Cold Dark Shell

	 	•	 	Provide demising walls and all utilities not stubbed to the space. Utilities are on
each floor and tenant will connect themselves. We tell them where utilities are located

Office — White Box + TI TBD

	 	•	 	Perimeter walls are sheet rocked and ready for finish. Floors are ready for finish.
Ceilings and Sprinklers are in place. Basic power in demising partitions. Electric
lighting in place.

 

 

EXHIBIT A

LEGAL DESCRIPTION OF PROJECT

PARCEL I — (f/k/a LOT 8, Now Part of LOT 9)

ALL THAT CERTAIN piece or parcel of land, together with any improvements thereon situate, lying and
being in the Borough of the Bronx, City and State of New York, bounded and described as follows:

BEGINNING at a point on the easterly side of Webster Avenue (100 feet in width), said point being
distant south 08 degrees 26 minutes 11 seconds west, a distance of 254.35 feet from a point formed
by the intersection of said easterly side of Webster Avenue with the southerly side of East Fordham
Road (a/k/a Pelham Avenue variable in width) and from said point of beginning

RUNNING THENCE along the common dividing line between said Lot 8 and Lot 9 south 85 degrees 39
minutes 56 seconds east, a distance of 108.97 feet to a point;

THENCE along the common dividing line between said Lot 8 and Lot 12 south 04 degrees 33 minutes 31
seconds west, a distance of 24.68 feet to a point;

THENCE along the common dividing line between said Lots 8 and Lot 4 (lands now or formerly of
Automotive Realty Corporation) north 85 degrees 39 minutes 56 seconds west, a distance of 110.65
feet to a point; on the aforementioned easterly side of Webster Avenue;

THENCE along the easterly side of said Webster Avenue, north 08 degrees 26 minutes 11 seconds east,
a distance of 24.74 feet to the point or place of BEGINNING.

PARCEL II — LOT 9:

ALL THAT CERTAIN piece or parcel of land, together with any improvements thereon situate, lying and
being in the Borough of the Bronx, City and State of New York, and as further bounded and described
as follows:

BEGINNING at a point on the easterly side of Webster Avenue (100 feet wide), said point being
distant south 08 degrees 26 minutes 11 seconds west, a distance of 228.81 feet from a point formed
by the intersection of said easterly side of Webster Avenue with the southerly side of East Fordham
Road (a/k/a Pelham Avenue, variable width) and from said point of beginning;

RUNNING THENCE the following two (2) courses along the dividing line between Lot 9 (n/f reputed
owner Acadia-PA East Fordham Acquisitions, LLC and Lot 12 (n/f reputed owner Acadia-PA East Fordham
Acquisitions, LLC), Block 3033;

1. South 85 degrees 39 minutes 56 seconds east, a distance of 115.24 feet to a point; thence

2. South 03 degrees 58 minutes 56 seconds west, a distance of 25.48 feet to a point; thence

 

 

3. Along the common dividing line between the aforementioned Lot 9 and Lots 12 & 8 (n/f Acadia-PA
East Fordham Acquisitions LLC), Block 3033 north 85 degrees 39 minutes 56 seconds west, a distance
of 117.22 feet to a point on the aforementioned easterly side of Webster Avenue; thence

4. Along said easterly side of Webster Avenue, north 08 degrees 26 minutes 11 seconds east, a
distance of 25.54 feet to the point or place of BEGINNING.

This description is prepared in accordance with a Survey made by Control Point Associates Inc.
dated 8/30/07 and last revised 9/18/07 by Gregory A. Gallas NY P.L.S. (Control Point Associates
Inc.)

PARCEL III — LOT 12:

ALL THAT CERTAIN plot, piece or parcel of land, together with any improvements thereon situate,
situate, lying and being in the Borough and County of Bronx, City and State of New York, bounded
and described as follows:

BEGINNING at a point formed by the intersection of the easterly side of Webster Avenue (100 feet
wide) with the southerly side of East Fordham Road (A.K.A. Pelham Avenue, Variable Width) and from
said point of beginning.

RUNNING THENCE the following three (3) courses along said southerly side of East Fordham Road;

1. South 84 degrees 34 minutes 46 seconds east, a distance of 43.27 feet to a point, THENCE

2. South 54 degrees 01 minute 22 seconds east, a distance of 29.77 feet to a point; THENCE;

3. South 40 degrees 09 minutes 32 seconds east, a distance of 85.32 feet to a point on the
westerly side of Park Avenue (Variable Width) THENCE

4. Along said westerly side of Park Avenue, south 00 degrees 10 minutes 48 seconds east, a
distance of 201.71 feet to a point THENCE

5. Along the dividing line between Lot 12 (Lands now or formerly of Acadia-PA East Fordham
Acquisitions LLC) and Lot 4 (Lands now or formerly of Automotive Realty Corporation), Block 3033,
North 85 degrees 39 minutes 56 seconds west, a distance of 53.59 feet to a point, THENCE

6. Along the common dividing line between the aforementioned Lot 12, Lot 8 (Land now or formerly
of Acadia-PA East Fordham Acquisitions LLC) and Lot 9 (lands now or formerly of Acadia-PA East
Fordham Acquisitions LLC) Block 3033, North 04 degrees 33 minutes 31 seconds east, a distance of
24.68 feet to a point, THENCE, The following three (3) courses along the dividing line between the
aforementioned Lots 12 and 9;

 

 

7. South 85 degrees 39 minutes 56 seconds east, a distance of 8.25 feet to a point, THENCE

8. North 03 degrees 58 minutes 56 seconds east, a distance of 25.48 feet to a point, THENCE

9. North 85 degrees 39 minutes 56 seconds west, a distance of 115.24 feet to a point on the
aforementioned easterly side of Webster Avenue, THENCE

10. Along said easterly side of Webster Avenue, north 08 degrees 26 minutes 11 seconds east, a
distance of 228.81 feet to the point and place of BEGINNING.

 

 

EXHIBIT B

FORM OF SECTION 22 AFFIDAVIT

N.Y. LIEN LAW AFFIDAVIT

	 	 	 	 	 	 	 
	STATE OF NEW YORK

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.:
	COUNTY OF NEW YORK

	 	 	)	 	 	 

     The undersigned, being duly sworn, deposes and says that:

     1. He resides at the address shown at the foot hereof.

     2. He is the                      of                                         , the
 managing member of                                          (the
“Borrower”), a                      limited liability company, which is the Borrower mentioned in the Building
Loan Agreement dated as of the date hereof, between the Borrower, Wachovia Bank, N.A. (the
“Administrative Agent”), as Administrative Agent, and the Lenders which are party thereto (each, a
“Lender”).

     3. The aggregate amount of the Building Loans is $                    .

     [4. The amount, if any, to be advanced from the Building Loans to reimburse Borrower for costs
of the Improvements expended by Borrower after the commencement of the Improvements but prior to
the date hereof are itemized as follows:

	 	 	 
	Description of Cost of Improvements1	 	Amount
	 
	 	 
	(a) Base Building Construction

	 	$                    
	 
	 	 
	(b) Architecture & Engineering

	 	$                    
	 
	 	 
	(c) Leasing Commissions

	 	$                    
	 
	 	 
	(d) Insurance Premiums and Expenses

	 	$                    
	 
	 	 
	(e) Examination of Title

	 	$                    
	 
	 	 
	(f) Ground Rents and Taxes

	 	$                    
	 
	 	 
	     Total:
	 	$                    ]

     5. The consideration for the Building Loans to be paid out of the Building Loans are (or are
estimated to be) as follows:

 

			
	1	 	Complete list accordingly

 

 

	 	 	 
	Prior existing mortgage to be
taken by assignment and consolidated
with Building Loan Mortgages:

	 	$	 
	 
	 	 
	Consideration (e.g., commitment
fees) to be paid for the Building
Loans:

	 	$	 
	 
	 	 
	     Total:	 	$                    	 

     6. The estimated amount to be advanced from the Building Loans for other indirect costs of the
Improvements which may become due and payable after the date hereof and during the construction of
the Improvements (including, without limitation, payment and performance bonds, leasing commissions
for commercial space leases of more than 3 years, insurance premiums, architects, engineers and
surveyors, ground rents, taxes, assessments and water sewer rents, examination of title and
recording fees, mortgage recording taxes, fees of Administrative Agent’s counsel, and interest on
the Building Loan) is $                    .

     7. The net sum available to Borrower from the Building Loans to pay contractors,
subcontractors, laborers and materialmen for the Improvements is $                    , subject to the
satisfaction of conditions to the advance and disbursement of such amounts contained in the
Building Loan Agreement.

     8. The failure of any Lender to make any Building Loan to be made by it on the date specified
therefor shall not relieve any other Lender of its obligation to make its Building Loan on such
date, but neither any Lender nor Administrative Agent shall be responsible for the failure of any
other Lender to make a Building Loan to be made by such other Lender. If a Building Loan is not
funded, the amounts referred to in this affidavit may not be advanced. The amounts payable by the
Borrower at any time under the Building Loan Agreement and under the Building Loan Notes to each
Lender shall be a separate and independent debt.

     9. This affidavit is made pursuant to and in compliance with Section 22 of the Lien Law of the
State of New York.

     10. The Borrower is a limited liability company. Therefore, this statement is verified by
deponent and not by the Borrower because the Borrower is a limited liability company and the
deponent is an officer of                     , a                     , the managing member of the Borrower.

 

 

     11. The facts stated above and any costs itemized on this statement are true, to the knowledge
of the undersigned.

	 	 	 	 	 
	 

	 	 

Name:
	 	 

Sworn to before me this

____ day of                         , 200___.

	 	 	 
	 

Notary Publicexv10w69

 

Exhibit 10.69

 

 

Acadia Strategic Opportunity Fund III LLC, 

a Delaware limited liability company

As Borrower

Acadia Realty Acquisition III LLC,

a Delaware limited liability company

As Managing Member

Acadia Realty Limited Partnership,

a Delaware limited partnership

As Guarantor 

Acadia Investors III, Inc.,

a Maryland corporation

As Pledgor

 

Revolving Credit Agreement

 

Bank of America, N.A.

As Administrative Agent

Banc of America Securities LLC

As Sole Lead Arranger and Sole Book Manager

YC Susi Trust,

As Conduit Lender

Bank of America, N.A.

As an Administrator, Alternate Lender and Managing Agent

and

The Other Conduit Lenders, Administrators,

Alternate Lenders and Managing Agents

From Time to Time Party Hereto

October 10, 2007

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	1.	 	DEFINITIONS	 	 	1	 
	 
	 	1.1.	 	Defined Terms	 	 	1	 
	 
	 	1.2.	 	Other Definitional Provisions	 	 	28	 
	 
	 	1.3.	 	Letter of Credit Amounts	 	 	29	 
	2.	 	LOANS AND LETTERS OF CREDIT	 	 	29	 
	 
	 	2.1.	 	The Commitment	 	 	29	 
	 
	 	2.2.	 	Revolving Credit Commitment	 	 	32	 
	 
	 	2.3.	 	Borrowing Procedures	 	 	32	 
	 
	 	2.4.	 	Determination of Yield and Interest Periods	 	 	36	 
	 
	 	2.5.	 	Letters of Credit	 	 	36	 
	 
	 	2.6.	 	Payment of Borrower Guaranty	 	 	45	 
	 
	 	2.7.	 	Use of Proceeds and Letters of Credit	 	 	46	 
	 
	 	2.8.	 	Administrative Agent and Arranger Fees	 	 	46	 
	 
	 	2.9.	 	Unused Facility Fee	 	 	46	 
	 
	 	2.10.	 	Letter of Credit Fees	 	 	46	 
	 
	 	2.11.	 	Computation of Interest and Fees	 	 	46	 
	 
	 	2.12.	 	Increase in the Facility Amount	 	 	47	 
	3.	 	PAYMENT OF OBLIGATIONS	 	 	47	 
	 
	 	3.1.	 	Notes	 	 	47	 
	 
	 	3.2.	 	Payment of Obligations	 	 	48	 
	 
	 	3.3.	 	Payment of Interest	 	 	48	 
	 
	 	3.4.	 	Payments Generally	 	 	49	 
	 
	 	3.5.	 	Voluntary Prepayments	 	 	50	 
	 
	 	3.6.	 	Reduction or Early Termination of Commitments	 	 	51	 
	 
	 	3.7.	 	Lending Office	 	 	51	 
	4.	 	CHANGE IN CIRCUMSTANCES	 	 	52	 
	 
	 	4.1.	 	Taxes	 	 	52	 
	 
	 	4.2.	 	Illegality	 	 	53	 
	 
	 	4.3.	 	Inability to Determine Rates	 	 	53	 
	 
	 	4.4.	 	Increased Cost and Capital Adequacy	 	 	54	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	4.5.	 	Funding Losses	 	 	55	 
	 
	 	4.6.	 	Matters Applicable to all Requests for Compensation	 	 	55	 
	 
	 	4.7.	 	Prohibited Event	 	 	56	 
	5.	 	SECURITY	 	 	56	 
	 
	 	5.1.	 	Liens and Security Interest	 	 	56	 
	 
	 	5.2.	 	Collateral Account; Capital Calls	 	 	57	 
	 
	 	5.3.	 	Agreement to Deliver Additional Collateral Documents	 	 	59	 
	 
	 	5.4.	 	Subordination of All Credit Party Claims	 	 	60	 
	6.	 	[RESERVED]	 	 	61	 
	7.	 	ADDITIONAL ALTERNATE LENDER PROVISIONS	 	 	61	 
	 
	 	7.1.	 	Assignment to Alternate Lenders	 	 	61	 
	 
	 	7.2.	 	Downgrade of Alternate Lender	 	 	62	 
	8.	 	CONDITIONS PRECEDENT TO LENDING	 	 	65	 
	 
	 	8.1.	 	Obligation of Lenders	 	 	65	 
	 
	 	8.2.	 	Qualified Borrower Loans and Letters of Credit	 	 	68	 
	 
	 	8.3.	 	All Loans and Letters of Credit	 	 	69	 
	9.	 	REPRESENTATIONS AND WARRANTIES	 	 	69	 
	 
	 	9.1.	 	Organization and Good Standing of Borrower	 	 	69	 
	 
	 	9.2.	 	Organization and Good Standing of Managing Member	 	 	69	 
	 
	 	9.3.	 	Organization and Good Standing of Guarantor	 	 	70	 
	 
	 	9.4.	 	Organization and Good Standing of Pledgor	 	 	70	 
	 
	 	9.5.	 	Authorization and Power	 	 	70	 
	 
	 	9.6.	 	No Conflicts or Consents	 	 	70	 
	 
	 	9.7.	 	Enforceable Obligations	 	 	70	 
	 
	 	9.8.	 	Priority of Liens	 	 	70	 
	 
	 	9.9.	 	Financial Condition	 	 	71	 
	 
	 	9.10.	 	Full Disclosure	 	 	71	 
	 
	 	9.11.	 	No Default	 	 	71	 
	 
	 	9.12.	 	No Litigation	 	 	71	 
	 
	 	9.13.	 	Material Adverse Change	 	 	71	 

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(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	9.14.	 	Taxes	 	 	71	 
	 
	 	9.15.	 	Jurisdiction of Formation; Principal Office	 	 	71	 
	 
	 	9.16.	 	ERISA Compliance	 	 	72	 
	 
	 	9.17.	 	Compliance with Law	 	 	72	 
	 
	 	9.18.	 	Hazardous Substances	 	 	72	 
	 
	 	9.19.	 	Insider	 	 	72	 
	 
	 	9.20.	 	Properties	 	 	72	 
	 
	 	9.21.	 	Operating Structure	 	 	72	 
	 
	 	9.22.	 	Capital Commitments and Contributions	 	 	73	 
	 
	 	9.23.	 	Fiscal Year	 	 	73	 
	 
	 	9.24.	 	Investment Company Act	 	 	73	 
	 
	 	9.25.	 	Margin Stock	 	 	73	 
	 
	 	9.26.	 	Foreign Asset Control Laws	 	 	73	 
	 
	 	9.27.	 	Brokers’ Fees	 	 	73	 
	 
	 	9.28.	 	Solvency	 	 	73	 
	 
	 	9.29.	 	Managing Member Representation	 	 	73	 
	 
	 	9.30.	 	Guarantor Representation	 	 	73	 
	 
	 	9.31.	 	Pledgor Representation	 	 	74	 
	 
	 	9.32.	 	Investments	 	 	74	 
	 
	 	9.33.	 	Investor Documents	 	 	74	 
	 
	 	9.34.	 	Advisory Committee	 	 	74	 
	10.	 	AFFIRMATIVE COVENANTS	 	 	74	 
	 
	 	10.1.	 	Financial Statements, Reports and Notices	 	 	74	 
	 
	 	10.2.	 	Payment of Taxes	 	 	76	 
	 
	 	10.3.	 	Maintenance of Existence and Rights	 	 	76	 
	 
	 	10.4.	 	Notice of Default	 	 	76	 
	 
	 	10.5.	 	Other Notices	 	 	76	 
	 
	 	10.6.	 	Compliance with Loan Documents,
Operating Agreement, Partnership Agreement and Stockholders Agreement	 	 	77	 
	 
	 	10.7.	 	Books and Records; Access	 	 	77	 

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(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	10.8.	 	Compliance with Law	 	 	77	 
	 
	 	10.9.	 	Insurance	 	 	77	 
	 
	 	10.10.	 	Authorizations and Approvals	 	 	77	 
	 
	 	10.11.	 	Maintenance of Liens	 	 	77	 
	 
	 	10.12.	 	Further Assurances	 	 	78	 
	 
	 	10.13.	 	Investor Financial and Rating Information	 	 	78	 
	 
	 	10.14.	 	Certain Included Investor Requirements	 	 	78	 
	 
	 	10.15.	 	Covenants of Qualified Borrowers	 	 	78	 
	11.	 	NEGATIVE COVENANTS	 	 	78	 
	 
	 	11.1.	 	Mergers	 	 	79	 
	 
	 	11.2.	 	Negative Pledge	 	 	79	 
	 
	 	11.3.	 	Fiscal Year and Accounting Method	 	 	79	 
	 
	 	11.4.	 	Constituent Documents	 	 	79	 
	 
	 	11.5.	 	Transfer by, or Admission of, Investors	 	 	80	 
	 
	 	11.6.	 	Capital Commitments	 	 	80	 
	 
	 	11.7.	 	ERISA Compliance	 	 	81	 
	 
	 	11.8.	 	Environmental Matters	 	 	81	 
	 
	 	11.9.	 	Dissolution	 	 	81	 
	 
	 	11.10.	 	Limitations on Dividends and Distributions	 	 	81	 
	 
	 	11.11.	 	Limitation on Debt	 	 	81	 
	 
	 	11.12.	 	Limitation on Managing Member’s Activities	 	 	81	 
	 
	 	11.13.	 	Limitation on Pledgor’s Activities	 	 	81	 
	 
	 	11.14.	 	Limitation on Guarantor’s Activities	 	 	82	 
	 
	 	11.15.	 	Investor Withdrawal	 	 	82	 
	12.	 	EVENTS OF DEFAULT	 	 	82	 
	 
	 	12.1.	 	Events of Default	 	 	82	 
	 
	 	12.2.	 	Remedies Upon Event of Default	 	 	84	 
	 
	 	12.3.	 	Performance by Administrative Agent	 	 	85	 
	13.	 	AGENCY PROVISIONS	 	 	85	 
	 
	 	13.1.	 	Appointment and Authorization of Agents	 	 	85	 

-iv-

 

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(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	13.2.	 	Delegation of Duties	 	 	86	 
	 
	 	13.3.	 	Exculpatory Provisions	 	 	86	 
	 
	 	13.4.	 	Reliance on Communications	 	 	87	 
	 
	 	13.5.	 	Notice of Default	 	 	87	 
	 
	 	13.6.	 	Non-Reliance on Agents and Other Lenders	 	 	87	 
	 
	 	13.7.	 	Indemnification	 	 	88	 
	 
	 	13.8.	 	Agents in Their Individual Capacity	 	 	88	 
	 
	 	13.9.	 	Successor Agent	 	 	89	 
	 
	 	13.10.	 	No Other Duties, Etc	 	 	89	 
	 
	 	13.11.	 	Administrative Agent May File Proofs of Claim	 	 	89	 
	14.	 	MISCELLANEOUS	 	 	90	 
	 
	 	14.1.	 	Amendments	 	 	90	 
	 
	 	14.2.	 	Setoff	 	 	92	 
	 
	 	14.3.	 	Sharing of Payments	 	 	92	 
	 
	 	14.4.	 	Payments Set Aside	 	 	93	 
	 
	 	14.5.	 	Waiver	 	 	93	 
	 
	 	14.6.	 	Payment of Expenses	 	 	94	 
	 
	 	14.7.	 	Notice	 	 	96	 
	 
	 	14.8.	 	GOVERNING LAW	 	 	97	 
	 
	 	14.9.	 	Choice of Forum; Consent to Service
of Process and Jurisdiction; Waiver of Trial by Jury	 	 	97	 
	 
	 	14.10.	 	Invalid Provisions	 	 	98	 
	 
	 	14.11.	 	Entirety and Amendments	 	 	98	 
	 
	 	14.12.	 	Successors and Assigns	 	 	98	 
	 
	 	14.13.	 	Lender Default	 	 	103	 
	 
	 	14.14.	 	Replacement of Lender	 	 	103	 
	 
	 	14.15.	 	Maximum Interest	 	 	103	 
	 
	 	14.16.	 	Headings	 	 	104	 
	 
	 	14.17.	 	Survival	 	 	104	 
	 
	 	14.18.	 	Integration	 	 	104	 

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	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	14.19.	 	Limited Liability of Investors	 	 	104	 
	 
	 	14.20.	 	Confidentiality	 	 	104	 
	 
	 	14.21.	 	USA PATRIOT Act Notice	 	 	105	 
	 
	 	14.22.	 	Multiple Counterparts	 	 	106	 
	 
	 	14.23.	 	No Bankruptcy Petition Against any Conduit Lender	 	 	106	 
	 
	 	14.24.	 	No Recourse Against any Conduit Lender	 	 	106	 

	 	 	 
	SCHEDULES
	 	 
	 
	 	 
	SCHEDULE 1.1

	 	Commitments
	SCHEDULE 14.7

	 	Address and Account Information
	SCHEDULE 14.12(b)

	 	Processing & Recording Fees

	 	 	 
	EXHIBITS
	 	 
	 
	 	 
	EXHIBIT A:

	 	Schedule of Investors and Commitments
	EXHIBIT B-1:

	 	Form of Note
	EXHIBIT B-2:

	 	Form of Qualified Borrower Note
	EXHIBIT B-3:

	 	Form of Qualified Borrower Letter of Credit Note
	EXHIBIT C:

	 	Form of Loan Notice
	EXHIBIT D-1:

	 	Form of Request for Letter of Credit
	EXHIBIT D-2:

	 	Form of Letter of Credit
	EXHIBIT E:

	 	Form of Borrower and Managing Member Security Agreement
	EXHIBIT F:

	 	Form of Account Assignment
	EXHIBIT G:

	 	Form of Facility Increase Request
	EXHIBIT H:

	 	Form of Borrowing Base Certificate
	EXHIBIT I:

	 	Form of Investor Letter
	EXHIBIT J:

	 	[Reserved]
	EXHIBIT K:

	 	[Reserved]
	EXHIBIT L:

	 	Form of Capital Contributions Pledge Agreement
	EXHIBIT M:

	 	Form of Assignment and Assumption Agreement
	EXHIBIT N:

	 	Form of Borrower Guaranty
	EXHIBIT O:

	 	Form of Compliance Certificate
	EXHIBIT P:

	 	Form of Guaranty of Capital

-vi-

 

REVOLVING CREDIT AGREEMENT

     THIS REVOLVING CREDIT AGREEMENT (together with all amendments and modifications hereof and
supplements and attachments hereto, this “Credit Agreement”) is dated as of October 10, 2007 by and
among ACADIA STRATEGIC OPPORTUNITY FUND III LLC, a Delaware limited liability company (the
“Borrower”), ACADIA REALTY ACQUISITION III LLC, a Delaware limited liability company (the “Managing
Member”), ACADIA REALTY LIMITED PARTNERSHIP, a Delaware limited partnership (the “Guarantor”)
ACADIA INVESTORS III, INC., a Maryland corporation (the “Pledgor”), YC SUSI Trust, as Conduit
Lender, BANK OF AMERICA, N.A., a national banking association (in its individual capacity, “Bank of
America”), as administrative agent (together with any successor appointed pursuant to Section 13.9
below, the “Administrative Agent”) for the Lenders, as an Alternate Lender, as an Administrator and
as a Managing Agent, and each of the other Persons from time to time party hereto as Lenders,
Managing Agents and Administrators (all such terms, as hereinafter defined).

A. Borrower, Managing Member, Guarantor and Pledgor have requested that Lenders make loans and
cause the issuance of letters of credit to Borrower and Qualified Borrowers (as hereinafter
defined) for the principal purposes of providing working capital to the Borrower; financing the
costs and other expenses to be incurred by Borrower in connection with making investments permitted
under the Operating Agreement (as hereinafter defined); and financing the costs of other
undertakings by Borrower permitted under the Operating Agreement; and

B. Lenders are willing to lend funds and to cause the issuance of letters of credit upon the terms
and subject to the conditions set forth in this Credit Agreement.

     NOW, THEREFORE, in consideration of the mutual promises herein contained and for other
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties
hereto do hereby agree as follows:

1. DEFINITIONS

     1.1. Defined Terms. For the purposes of this Credit Agreement, unless otherwise expressly
defined, the following terms shall have the respective meanings assigned to them in this Section 1
or in the Section or recital referred to:

     “Account Assignment” means that certain assignment of the Collateral Account substantially in
the form of Exhibit F, dated the date hereof, executed by Borrower in favor of Administrative Agent
for the benefit of the Secured Parties.

     “Adequately Capitalized” means in compliance with the capital standards for bank holding
companies as described in the Bank Holding Company Act of 1956, as amended, and regulations
promulgated thereunder.

     “Administrative Agent” is defined in the first paragraph hereof.

Acadia Strategic Opportunity Fund III LLC

Revolving Credit Agreement

 

 

     “Administrative Agent’s Account” means the account designated from time to time by the
Administrative Agent for payments by the Borrower Parties pursuant to this Credit Agreement.

     “Administrative Agent’s Office” means Administrative Agent’s address set forth on Schedule
14.7 or such other address as Administrative Agent may from time to time notify the Borrower and
the Lenders in writing.

     “Administrator” means: (a) with respect to YC SUSI, Bank of America or an Affiliate thereof;
and (b) with respect to any other Conduit Lender, the Person designated by such Conduit Lender as
its “Administrator”, which Person becomes a party to this Credit Agreement in such capacity.

     “Affiliate” of any Person means any other Person that, directly or indirectly, controls or is
controlled by, or is under common control with, such Person. For the purpose of this definition,
“control” and the correlative meanings of the terms “controlled by” and “under common control with”
means the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through the ownership of voting shares or
partnership interests or by contract or otherwise.

     “Agent-Related Persons” means each Agent, together with its Affiliates (including, in the case
of Bank of America in its capacity as the Administrative Agent, the Arranger), and the officers,
directors, employees, agents and attorneys-in-fact of such Persons and their respective Affiliates.

     “Agents” means, collectively, Administrative Agent, Letter of Credit Issuer, Administrators,
Managing Agents, the Arranger and any successors and assigns in such capacities.

     “Alternate Lender Percentage” means, with respect to any Lender Group, at any time, a
fraction, expressed as a percentage, the numerator of which is the portion of the Loans funded by
the Alternate Lenders of such Lender Group and the denominator of which is the aggregate Loans at
such time of such Lender Group; provided that at all times on and after the first Assignment Date
occurring on or after the Conduit Investment Termination Date for the Conduit Lender related to
such Lender Group, the Alternate Lender Percentage for such Lender Group means 100%.

     “Alternate Lender Pro Rata Share” means, with respect to each Alternate Lender and any Lender
Group, the percentage obtained from the fraction: (a) the numerator of which is the Commitment of
such Alternate Lender; and (b) the denominator of which is the aggregate Commitments of all
Alternate Lenders in the related Lender Group.

     “Alternate Lenders” means: (a) for the YC SUSI Lender Group, Bank of America and any
assignees thereof that shall become party hereto pursuant to Section 7 or Section 14.12; and (b)
for any other Lender Group, the “Alternate Lenders” specified therefore who become parties hereto
and any assignees thereof that shall become party hereto pursuant to Section 7 or Section 14.12.

2

 

     “Alternate Rate” means, for any Interest Period for any Portion of Loans for any Lender Group,
an interest rate per annum as provided in the Fee Letter above the LIBOR Rate for such Interest
Period; provided, however, that in the case of:

     (a) any Interest Period of one to (and including) 14 days;

     (b) any Interest Period which commences prior to the related Managing Agent receiving at least
three (3) Business Days notice thereof; or

     (c) any Interest Period relating to a Portion of Loans which is less than $5,000,000;

     the “Alternate Rate” for each such Interest Period shall be an interest rate per annum equal
to the Base Rate in effect on each day of such Interest Period. The “Alternate Rate” for any date
on or after the occurrence of an Event of Default or the Maturity Date shall be the Default Rate.

     “Applicable Margin” has the meaning provided in the Fee Letter.

     “Applicable Requirement” means, for any Included Investor that is (or whose Credit Provider,
if applicable, is): (a) a Bank Holding Company, Adequately Capitalized status or better and a
Rating of BBB/Baa2 or higher; (b) an insurance company, a Best’s Rating of A- or higher and a
Rating of BBB/Baa2 or higher; (c) an ERISA Investor, or the trustee or nominee of an ERISA
Investor, in addition to the Sponsor’s Rating of BBB/Baa2 or higher, a minimum Funding Ratio for
the related pension fund based on the Rating of the Sponsor of the related pension fund as follows:

	 	 	 	 	 
	Sponsor Rating	 	Minimum Funding Ratio	 
	A-/A3 or higher
	 	No minimum
	BBB+/Baa1
	 	 	90%	
	BBB/Baa2
	 	 	95%	

     (d) a Governmental Plan Investor, or the Responsible Party with respect to such Governmental
Plan Investor, in addition to the Responsible Party’s Rating of BBB/Baa2 or higher, a minimum
Funding Ratio for the pension fund based on the Rating of the Responsible Party as follows:

	 	 	 	 	 
	Responsible Party Rating	 	Minimum Funding Ratio	 
	A-/A3 or higher
	 	No minimum
	BBB+/Baa1
	 	 	90%	
	BBB/Baa2
	 	 	95%;	 

     and (e) otherwise a Rated Investor, a Rating of BBB/Baa2 or higher.

     The first Rating indicated in each case above is the S&P Rating and the second Rating
indicated in each case above is the Moody’s Rating. In the event that the S&P and Moody’s Ratings
are not equivalent, then the Applicable Requirement shall be based on the lower of the two. If any
such Person has only one Rating, from either S&P or Moody’s, then that Rating shall apply.

3

 

     “Application and Agreement for Letter of Credit” means an application and agreement for
standby letter of credit by, between and among Borrower and a Qualified Borrower, on the one hand,
and the Letter of Credit Issuer, on the other hand, in a form acceptable to the Letter of Credit
Issuer (and customarily used by it in similar circumstances) and conformed to the terms of this
Credit Agreement, either as originally executed or as it may from time to time be supplemented,
modified, amended, renewed, or extended, provided, however, to the extent that the terms of such
Application and Agreement are inconsistent with the terms of this Credit Agreement, the terms of
this Credit Agreement shall control.

     “Approved Fund” means any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and similar extensions of
credit in the ordinary course of its business, that is administered or managed by: (a) a Lender;
(b) an Affiliate of a Lender; or (c) an entity or an Affiliate of an entity that administers or
manages a Lender.

     “Arranger” is defined in the preamble to this Credit Agreement.

     “Assignee” is defined in Section 14.12(b) hereof.

     “Assignee Group” means two or more Eligible Assignees that are Affiliates of one another or
two or more Approved Funds managed by the same investment advisor.

     “Assignment Amount” means, with respect to an Alternate Lender at the time of any assignment
pursuant to Section 7.1 by any Conduit Lender in such Alternate Lender’s Lender Group, an amount
equal to the least of: (a) such Alternate Lender’s Alternate Lender Pro Rata Share of the
Obligations requested by such Conduit Lender to be assigned at such time; (b) such Alternate
Lender’s unused Commitment (minus the sum of (i) the unrecovered principal amount of such Alternate
Lender’s investments in such Obligations pursuant to the Program Support Agreement to which it is a
party and (ii) such Alternate Lender’s Alternate Lender Pro Rata Share of the applicable Lender
Group Percentage of the Letter of Credit Liability); and (c) in the case of an assignment on or
after the Conduit Investment Termination Date for the Conduit Lender related to such Lender Group,
(i) such Alternate Lender’s Alternate Lender Pro Rata Share of the applicable Conduit Lender
Percentage of the Lender Group Percentage of the
Borrowing Base minus (ii) such Alternate Lender’s Alternate Lender Pro Rata Share of the
applicable Lender Group Percentage of the Letter of Credit Liability.

     “Assignment and Assumption Agreement” means the agreement contemplated by Section 14.12(b)
hereof, pursuant to which any Lender assigns all or any portion of its rights and obligations
hereunder, which agreement shall be substantially in the form of Exhibit M attached hereto.

     “Assignment Date” is defined in Section 7.1(a) hereof.

     “Assignment Fee” is defined in Schedule 14.12(b) hereto.

     “Attorney Costs” means and includes all reasonable fees and disbursements of any law firm or
other external counsel and the allocated cost of internal legal services and all disbursements of
internal counsel.

4

 

     “Auto-Extension Letter of Credit” is defined in Section 2.5(b)(iii).

     “Availability Period” means the period commencing on the Closing Date and ending on the
Maturity Date.

     “Available Loan Amount” means, at any time, the lesser of (a) the Facility Amount at such
time; or (b) the Borrowing Base at such time.

     “Bank Holding Company” means a “bank holding company” as defined in Section 2(a) of the Bank
Holding Company Act of 1956, as amended, or a non-bank subsidiary of such bank holding company.

     “Bank of America” is defined in the preamble to this Credit Agreement.

     “Base Rate” means, for any day for any Portion of Loans for any Lender Group, a fluctuating
rate per annum equal to the higher of: (a) the Federal Funds Rate for such day, plus the Applicable
Margin; and (b) the rate of interest in effect for such day as publicly announced from time to time
by Bank of America as its “prime rate”, plus the Applicable Margin. The “prime rate” is a rate set
by Bank of America based upon various factors including Bank of America’s costs and desired return,
general economic conditions and other factors, and is used as a reference point for pricing some
loans, which may be priced at, above, or below such announced rate. Any change in such rate
announced by Bank of America shall take effect at the opening of business on the day specified in
the public announcement of such change.

     “Best‘s Rating” means a “Best‘s Rating” by A.M. Best Company.

     “Borrower” is defined in the preamble to this Credit Agreement.

     “Borrower and Managing Member Security Agreement” means that certain Security Agreement,
substantially in the form of Exhibit E, executed and delivered by Borrower and Managing Member in
favor of Administrative Agent for the benefit of Secured Parties.

     “Borrower Guaranty” means an unconditional guaranty of payments in the form of Exhibit N
attached hereto, enforceable against Borrower for the payment of a Qualified Borrower’s debt or
obligation to Secured Parties; and “Borrower Guaranties” means such guaranties, collectively.

     “Borrower Parties” means Borrower and each Qualified Borrower; and “Borrower Party” means any
of them.

     “Borrowing” means a disbursement made by Lenders with respect to Loans hereunder (including
any reimbursement of the Letter of Credit Issuer following a draw on a Letter of Credit) and
“Borrowings” means the plural thereof.

     “Borrowing Base” means the sum of (a) ninety percent (90%) of the Eligible Available
Contributions of the Included Investors at such time; and (b) sixty-five percent (65%) of the
Eligible Available Contributions of the Designated Investors at such time.

5

 

     “Borrowing Base Certificate” means the certificate setting forth the calculation of the
Borrowing Base in the form of Exhibit H.

     “Borrowing Base Deficit” means, on any date of determination, the amount (if any) by which:
(a) the Principal Obligation is in excess of (b) the Borrowing Base.

     “Business Day” means any day of the year except a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact closed in, the State of
New York or the city of Charlotte, North Carolina.

     “Capital Call” means a call upon all or any of the Investors for payment of all or any portion
of their Unfunded Capital Commitments pursuant to and in accordance with the terms of the
Stockholders Agreement, the Partnership Agreement and/or the Operating Agreement, as applicable.

     “Capital Call Notice” means any notice sent to an Investor for the purpose of making a Capital
Call.

     “Capital Call Notice Date” is defined in Section 5.2(c) hereof.

     “Capital Commitment” means the commitment of each Investor to fund Capital Contributions,
directly or indirectly, to a Credit Party in the amount set forth in, and pursuant to the terms of,
the Stockholders Agreement, the Partnership Agreement and/or the Operating Agreement, as
applicable.

     “Capital Contribution” means for any Investor, any contribution of capital made to Borrower or
the Pledgor, as applicable, in response to a Capital Call Notice.

     “Capital Contributions Pledge Agreement” means that certain Capital Contributions Pledge
Agreement, dated as of the date hereof executed and delivered by Pledgor in favor of Administrative
Agent on behalf of the Secured Parties, as the same may be amended, supplemented or otherwise
modified from time to time with the consent of Administrative Agent, the Letter of Credit Issuer,
and the Lenders to the extent expressly required hereby, which agreement shall be substantially in
the form of Exhibit L attached hereto.

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

     “Cash Collateralize” is defined in Section 2.5(g)(ii) hereof.

     “CERCLIS” means the Comprehensive Environmental Response, Compensation and Liability
Information System.

     “Change in Law” means the occurrence, after the date of this Credit Agreement, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty; (b) any change
in any law, rule, regulation or treaty or in the administration, interpretation or application

6

 

thereof by any Governmental Authority; or (c) the making or issuance of any request, guideline or
directive (whether or not having the force of law) by any Governmental Authority.

     “Closing Date” means the date on which all of the conditions precedent set forth in Section
8.1 hereof are satisfied or waived.

     “Code” means the Uniform Commercial Code as adopted in the State of New York and any other
state, which governs creation or perfection (and the effect thereof) of security interests in any
collateral for the Obligations.

     “Collateral” is defined in Section 5.1(a) hereof.

     “Collateral Account” is defined in Section 5.2(a).

     “Collateral Documents” means the security agreements, financing statements, assignments and
other documents and instruments from time to time executed and delivered pursuant to this Credit
Agreement and any documents or instruments amending or supplementing the same, including, without
limitation, the Borrower and Managing Member Security Agreement, the Capital Contributions Pledge
Agreement and the Account Assignment.

     “Commercial Paper” means, with respect to a Conduit Lender, the promissory notes issued or to
be issued by such Conduit Lender (or its related commercial paper issuer if such Conduit Lender
does not itself issue commercial paper) in the commercial paper market.

     “Commitment” means, with respect to each Alternate Lender, as the context requires, the
commitment of such Alternate Lender to make Loans (including Loans funding draws under Letters of
Credit) and to pay Assignment Amounts in accordance herewith in an amount not to exceed the amount
set forth opposite such Alternate Lender’s name on Schedule 1.1 hereof and the heading “Commitment”
(or, in the case of an Alternate Lender which becomes a party hereto pursuant to an Assignment and
Assumption Agreement entered into pursuant to the terms hereof, as set forth in such Assignment and
Assumption Agreement); minus the amount of any Commitment or portion thereof assigned by such
Alternate Lender pursuant to an Assignment and Assumption Agreement entered into pursuant to the
terms hereof; plus the amount of any increase to such Alternate Lender’s Commitment consented to by
such Alternate Lender prior to the time of determination; provided, however, that, to the extent
that the Facility Amount is reduced or otherwise declines, the aggregate of the Commitments of all
the Alternate Lenders shall decline by a like amount and the Commitment of each Alternate Lender
shall decline in proportion thereto.

     “Compliance Certificate” is defined in Section 10.1(d).

     “Concentration Limit” has the meaning provided in the definition of “Inclusion Percentage”.

     “Conduit Assignee” means any special purpose entity that finances its activities directly or
indirectly through asset backed commercial paper and is administered by an Administrator or any of
its Affiliates and designated by such Administrator from time to time to accept an

7

 

assignment from
the applicable Conduit Lender of all or a portion of its Loans and other interests hereunder.

     “Conduit Collateral Agent” means, with respect to any Conduit Lender, the “Collateral Agent”
(if any) with respect to such Conduit Lender’s commercial paper program.

     “Conduit Investment Termination Date” means, with respect to any Conduit Lender, the date of
the delivery by such Conduit Lender to the Borrower of written notice that such Conduit Lender
elects, in its sole discretion, not to make any further Loans or participate in any further Letters
of Credit hereunder.

     “Conduit Lender” means: (a) YC SUSI and any permitted Conduit Assignee thereof; and (b) any
other Person that shall become a party to this Credit Agreement as a “Conduit Lender” pursuant to
the terms hereof; and, subject to the terms and conditions of this Credit Agreement, their
respective successors and assigns (but not any Participant who is not otherwise a party to this
Credit Agreement).

     “Conduit Lender Percentage” means, with respect to any Conduit Lender, at any time, 100%, less
the Alternate Lender Percentage of such Conduit Lender’s Lender Group at such time.

     “Constituent Documents” means, for any entity, its constituent or organizational documents,
including: (a) in the case of a limited partnership, its certificate of registration as a limited
partnership and its limited partnership agreement; (b) in the case of a limited liability company,
its certificate of formation or organization and its operating agreement or limited liability
company agreement; (c) in the case of a corporation, its articles or certificate of incorporation
and its bylaws; and (d) in the case of a joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation and any agreement,
instrument, filing or notice with respect thereto filed in connection with its formation with the
secretary of state or other department in the state or jurisdiction of its formation, in each case
as amended from time to time.

     “Controlled Group” means: (a) the controlled group of corporations as defined in Section 1563
of the Internal Revenue Code; or (b) the group of trades or businesses under common control as
defined in Section 414(c) of the Internal Revenue Code, in each case of which any Borrower Party is
a part or may become a part.

     “CP Rate” means, for any Interest Period for any Portion of Loans funded by a Conduit Lender
(or its related commercial paper issuer if such Conduit Lender does not itself issue commercial
paper) of a Lender Group by issuing Commercial Paper, the per annum rate equivalent to the sum of
(a) the Used Fee, (b) the Dealer Fee, and (c) the weighted average cost (as determined by the
applicable Administrator and including incremental carrying costs incurred with respect to
Commercial Paper maturing on dates other than those on which corresponding funds are received by
such Conduit Lender, other borrowings by such Conduit Lender (other than under any Program Support
Agreement) and any other costs associated with the issuance of Commercial Paper) of or related to
the issuance of Commercial Paper that are allocated, in whole or in part, by such Conduit Lender or
the applicable Administrator to fund or maintain such

8

 

Portion of Loans (and which may be also
allocated in part to the funding of other assets of such Conduit Lender); provided, however, that
if any component of such rate is a discount rate, in calculating the “CP Rate” for such Portion of
Loans for such Interest Period, such Conduit Lender shall for such component use the rate resulting
from converting such discount rate to an interest bearing equivalent rate per annum.

     “Credit Agreement” is defined in the preamble hereto.

     “Credit Parties” means Borrower, each Qualified Borrower, Managing Member, Guarantor and
Pledgor; “Credit Party” means any one of them.

     “Credit Party Claims” is defined in Section 5.4 hereof.

     “Credit Provider” means a Person providing a guaranty, in form and substance reasonably
acceptable to Administrative Agent, of the obligations of an Included Investor to make Capital
Contributions to a Credit Party, or, under the applicable Investor Letter, to Administrative Agent
for the benefit of the Secured Parties.

     “Current Party” is defined in Section 14.13.

     “Dealer Fee” has the meaning provided in the Fee Letter.

     “Debtor Relief Laws” means any applicable liquidation, conservatorship, bankruptcy,
moratorium, rearrangement, insolvency, fraudulent conveyance, reorganization, or similar laws
affecting the rights, remedies, or recourse of creditors generally, including without limitation
the United States Bankruptcy Code and all amendments thereto, as are in effect from time to time
during the term of the Loans.

     “Default Rate” has the meaning provided in the Fee Letter.

     “Defaulting Alternate Lender” means any Alternate Lender that: (a) has failed to make its Pro
Rata Share of any advance required to be made in respect of Loans or any disbursement by the Letter
of Credit Issuer in respect of Loans or Letters of Credit, respectively; (b) has otherwise failed
to pay over to the Administrative Agent or any other Lender any other amount required to be paid by
it hereunder within one (1) Business Day of the date when due, unless the subject of a good faith
dispute; or (c) has been deemed insolvent or become the subject of a bankruptcy or insolvency
proceeding.

     “Defaulting Investor” is defined in Section 2.1(c) hereof.

     “Designated Exclusion Event” means that, at any time, either: (a) five (5) Designated
Investors are Defaulting Investors, or (b) Designated Investors with an aggregate Unfunded Capital
Commitment greater than 10% of the total aggregate Unfunded Capital Commitment of all Investors are
Defaulting Investors, provided, that for purposes of determining a Designated Exclusion Event, any
(i) Designated Investor that becomes a Defaulting Investor but that is replaced by the Credit
Parties with a new Designated Investor, or (ii) whose obligations are transferred to any existing
Designated Investor or Included Investor in accordance with the terms

9

 

of this Credit Agreement and
the Operating Agreement or Stockholders Agreement, as applicable, shall not be counted.

     “Designated Investor” means any Investor (other than an Included Investor): (a) that has been
so designated by 100% of the Lenders (in their sole discretion) as a Designated Investor, as
evidenced in writing executed by Administrative Agent; and (b) that has delivered to Administrative
Agent the information and documents required under Section 8.1(p); provided that, from and after
the occurrence of an Investor’s Effective Removal Date, the Investor shall no longer be a
Designated Investor until such time as all Exclusion Events affecting such Investor have been cured
and such Investor shall have been approved again as a Designated Investor in the sole and absolute
discretion of the Required Lenders. Designated Investors approved as such as of the Closing Date
are as set forth on Exhibit A.

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

     “Downgrade Collateral Account” is defined in Section 7.2(a) hereof.

     “Downgrade Draw” is defined in Section 7.2(a) hereof.

     “Effective Removal Date” means, with respect to any Investor, fifteen (15) Business Days
following the occurrence of an Exclusion Event with respect to such Investor.

     “Eligible Assignee” means: (a) a Lender or Program Support Provider; (b) an Affiliate of a
Lender or an Approved Fund with respect to a Lender; and (c) any other Person approved by: (i)
Administrative Agent and, (ii) unless an Event of Default exists and is continuing at the time any
assignment is effected in accordance with Section 14.12(b) hereof, Borrower, each such approval not
to be unreasonably withheld or delayed by Borrower or Administrative Agent, as applicable, and such
approval to be deemed given by Borrower if no objection is received by the assigning Lender and
Administrative Agent from Borrower within five (5) Business Days after notice of such proposed
assignment has been provided by the assigning Lender to Borrower; provided, however, that no Credit
Party or Affiliate of any Credit Party shall qualify as an “Eligible Assignee.”

     “Eligible Available Contributions of the Designated Investors” means, as of any date, an
amount equal to the sum of the products of (a) the Inclusion Percentage for each Designated
Investor multiplied by (b) the Unfunded Capital Commitment of such Designated Investor, provided,
that at any time a Designated Exclusion Event has occurred and is continuing, the Eligible
Available Contributions of all Designated Investors shall be zero.

     “Eligible Available Contributions of the Included Investors” means, as of any date, an amount
equal to the sum of the products of (a) the Inclusion Percentage for each Included Investor
multiplied by (b) the Unfunded Capital Commitment of such Included Investor.

     “Environmental Complaint” means any complaint, order, demand, citation or notice threatened or
issued in writing to any Credit Party by any Person with regard to air emissions, water discharges,
Releases, or disposal of any Hazardous Material, noise emissions or any other environmental, health
or safety matter affecting any Credit Party or any of their Properties.

10

 

     “Environmental Laws” means: (a) the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended by the Superfund Amendments and Re-authorization Act of 1986, 42
U.S.C. §9601 et seq.; (b) 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.; (c) the Clean Air Act, 42
U.S.C. §7401 et seq., as amended by the Clean Air Act Amendments of 1990; (d) the Clean Water Act
of 1977, 33 U.S.C. §1251 et seq.; (e) the Toxic Substances Control Act, 15 U.S.C.A. §2601 et seq.;
(f) all other federal, state and local laws, or ordinances, regulations or policies relating to
pollution or protection of human health or the environment including without limitation, air
pollution, water pollution, noise control, or the use, handling, discharge, disposal or Release or
recovery of on-site or off-site Hazardous Materials, as each of the foregoing may be amended from
time to time, applicable to any Credit Party, and (g) any and all regulations promulgated under or
pursuant to any of the foregoing statutes.

     “Environmental Liability” means any written claim, demand, obligation, cause of action,
accusation or allegation, or any order, violation, damage (including, without limitation, to any
Person, property or natural resources), injury, judgment, penalty or fine, cost of enforcement,
cost of remedial action, cleanup, restoration or any other cost or expense whatsoever,
including Attorney Costs and disbursements resulting from the violation or alleged violation of any
Environmental Law or the imposition of any Environmental Lien or otherwise arising under any
Environmental Law or resulting from any common law cause of action asserted by any Person.

     “Environmental Lien” means a Lien in favor of any Governmental Authority: (a) under any
Environmental Law; or (b) for any liability or damages arising from, or costs incurred by, any
Governmental Authority in response to the Release or threatened Release of any Hazardous Material.

     “Environmental Requirement” means any Environmental Law, agreement, or restriction, as the
same now exists or may be changed, amended, or come into effect in the future, which pertains to
health, safety, or the environment, including, but not limited to ground, air, water, or noise
pollution, or underground or aboveground tanks.

     “Equity Interest” means, (a) with respect to any member of Borrower, its Membership Interest,
and (b) with respect to any Stockholder, its Stockholder Interest.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the rules
and regulations promulgated thereunder by any Governmental Authority, as from time to time in
effect.

     “ERISA Investor” means an Investor that is (a) an “employee benefit plan” (as such term is
defined in Section 3(3) of ERISA) subject to Title I of ERISA, (b) any “plan” defined in Section
4975(e) of the Code other than a governmental plan, (c) a group trust, as described in Revenue
Ruling 81-100, or (d) a partnership or commingled account of a fund, or any other entity, whose
assets include or are deemed to include the assets of one or more such employee benefit plans
subject to Title I of ERISA, as determined under Section 2510.3-101 or Section 2550.401c-1 of the
regulations of the United States Department of Labor or under any other relevant legal authority.

11

 

     “Event of Default” is defined in Section 12.1 hereof.

     “Excluded Taxes” means, with respect to any Tax Indemnified Party or any other recipient of
any payment to be made by or on account of any obligation of any Credit Party hereunder: (a) taxes
imposed on or measured by its net income (however denominated), and franchise taxes imposed on it
(in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the
laws of which such Tax Indemnified Party or recipient is organized or in which its principal office
is located or, in the case of any Lender, in which its applicable Lending Office is located; (b)
any branch profits taxes imposed by the United States or any similar tax imposed by any other
jurisdiction in which such Credit Party is located; and (c) in the case of a Foreign Person (other
than an assignee pursuant to a request by the Borrower under Section 14.14), any withholding tax
that (i) is attributable to such Foreign Person’s failure or inability (other than as a result of a
Change in Law) to comply with Section 4.1(e), or (ii) is imposed on amounts payable to such Foreign
Person at the time such Foreign Person becomes a
party hereto (or designates a new Lending Office) except to the extent of the additional
amounts, if any, that such Foreign Person (or its assignor, if any) was entitled, at the time of
designation of a new Lending Office (or assignment), to receive from the Borrower with respect to
such withholding tax pursuant to Section 4.1(a).

     “Exclusion Event” is defined in Section 2.1(c) hereof.

     “Facility Amount” means an amount equal to $75,000,000 as it may be reduced by Borrower
pursuant to Section 3.6, or increased pursuant to Section 2.12 (not to exceed the Maximum
Commitment).

     “Facility Increase Request” means the notice in the form of Exhibit G pursuant to which
Borrower requests an increase of the Commitments in accordance with Section 2.12.

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

     “Fee Letter” shall mean, collectively, each separate letter agreement by and among Borrower
and each Managing Agent and/or Administrative Agent, together with all amendments and modifications
thereof.

     “Foreign Person” means, with respect to any Credit Party, any Tax Indemnified Party that is a
resident of or organized under the laws of a jurisdiction other than that in which such Credit
Party is resident for tax purposes. For purposes of this definition, the United States, each State
thereof and the District of Columbian shall be deemed to constitute a single jurisdiction.

12

 

     “Funding Ratio” means: (a) for a Governmental Plan Investor, the actuarial present value of
the assets of the plan over the actuarial present value of the plan’s total benefit liabilities, as
reported in such plan’s audited financial statements; and (b) for an ERISA Investor, the funded
current liability percentage reported on Schedule B to the most recent Form 5500 filed by such plan
with the United States Department of Labor.

     “Generally Accepted Accounting Principles” or “GAAP” means those generally accepted accounting
principles and practices that are recognized as such by the American Institute of Certified Public
Accountants or by the Financial Accounting Standards Board or through other appropriate boards or
committees thereof, and that are consistently applied for all periods, after the date hereof, so as
to properly reflect the financial position of such Person,
except that any accounting principle or practice required to be changed by the Financial
Accounting Standards Board (or other appropriate board or committee of the said Board) in order to
continue as a generally accepted accounting principle or practice may be so changed.

     “Governmental Authority” means any foreign governmental authority, the United States of
America, any State of the United States of America, and any subdivision of any of the foregoing,
and any agency, department, commission, board, authority or instrumentality, bureau or court having
jurisdiction over any Credit Party, any Agent, any Lender or the Letter of Credit Issuer, or any of
their respective businesses, operations, assets, or properties.

     “Governmental Plan Investor” means an Investor that is a pension plan and that is a
governmental plan as defined in Section 3(32) of ERISA.

     “Guaranteed Obligations” means those obligations guaranteed by the Guarantor pursuant to the
Guaranty of Capital.

     “Guarantor” is defined in the preamble to this Credit Agreement.

     “Guaranty” means the guaranty of the Guarantor made pursuant to the Guaranty of Capital.

     “Guaranty Obligations” means, with respect to any Person, without duplication, any obligations
(other than endorsements in the ordinary course of business of negotiable instruments for deposit
or collection) guaranteeing any Indebtedness of any other Person in any manner, whether direct or
indirect, and including without limitation any obligation, whether or not contingent: (a) to
purchase any such Indebtedness or other obligation or any property constituting security therefor;
(b) to advance or provide funds or other support for the payment or purchase of such Indebtedness
or obligation or to maintain working capital, solvency or other balance sheet condition of such
other Person (including, without limitation, maintenance agreements, comfort letters, take or pay
arrangements, put agreements or similar agreements or arrangements) for the benefit of the holder
of Indebtedness of such other Person; (c) to lease or purchase property, securities or services
primarily for the purpose of assuring the owner of such Indebtedness; or (d) to otherwise assure or
hold harmless the owner of such Indebtedness or obligation against loss in respect thereof.

13

 

     “Guaranty of Capital” means that certain Guaranty of Capital, substantially in the form of
Exhibit P, dated as of the date hereof, executed by Guarantor in favor of Administrative Agent on
behalf of the Secured Parties.

     “Hazardous Material” means any substance, material, or waste which is or becomes regulated,
under any Environmental Law, as hazardous to public health or safety or to the environment,
including, but not limited to: (a) any substance or material designated as a “hazardous substance”
pursuant to Section 311 of the Clean Water Act, as amended, 33 U.S.C. §1251 et seq., or listed
pursuant to Section 307 of the Clean Water Act, as amended; (b) any substance or material defined
as “hazardous waste” pursuant to Section 1004 of the Resource
Conservation and Recovery Act, as amended, 42 U.S.C. §6901 et seq.; (c) any substance or
material defined as a “hazardous substance” pursuant to Section 101 of the Comprehensive
Environmental Response, Compensation and Liability Act, as amended, 42 U.S.C. §9601 et seq.; or (d)
petroleum, petroleum products and petroleum waste materials.

     “Hedging Agreements” means, collectively, interest rate protection agreements, foreign
currency exchange agreements, commodity purchase or option agreements or other interest or exchange
rate or commodity price hedging agreements, in each case, entered into or purchased by Borrower.

     “Honor Date” is defined in Section 2.5(c)(i) hereof.

     “Implicit Borrowing Base Deficit” means, on any date of determination, the amount (if any) by
which: (a) the aggregate Principal Obligation is in excess of (b) the Borrowing Base (provided
that, for purposes of this definition, the Borrowing Base shall be calculated as if each Effective
Removal Date related to each Exclusion Event shall have occurred).

     “Included Investor” means an Investor: (a) that has, or that has a Credit Provider that has,
met the Applicable Requirement for such Investor and that has been designated on the Closing Date
by Administrative Agent as an “Included Investor”; (b) that has delivered to Administrative Agent
the information and documents required under Section 8.1(p); and (c) for Investors being added to
the Borrowing Base as an “Included Investor” after the Closing Date, satisfaction of the
requirements in clauses (a) and (b) above and (i) in the case of a Rated Investor, with the consent
of the Administrative Agent, acting alone (which shall not be unreasonably withheld) as evidenced
in a writing executed by Administrative Agent, and (ii) in the cased of a Non-Rated Investor, with
the consent of 100% of the Lenders, as evidenced in a writing executed by Administrative Agent;
provided that a Defaulting Investor shall no longer be an Included Investor until such time as all
Exclusion Events affecting such Investor have been cured and such Investor shall have been approved
in writing as an Included Investor in the sole and absolute discretion of Administrative Agent, the
Letter of Credit Issuer, and all of the Lenders. Included Investors approved as such on the
Closing Date are as set forth on Exhibit A.

     “Inclusion Percentage” means, (a) with respect to each Included Investor and each Designated
Investor, the highest percentage (up to 100%) which results in an aggregate amount of Unfunded
Capital Commitment of such Investor at such time not exceeding the applicable Concentration Limit
(as set forth below) for such Investor as a percentage of the total aggregate Unfunded Capital
Commitment of all Investors at such time:

14

 

	 	 	 	 	 
	 	 	Concentration Limit (as a
	 	 	percentage of the total
	 	 	aggregate Unfunded Capital
	Rating (1)	 	Commitment of all Investors)
	AAA/Aaa
	 	 	15.0%	
	AA-/Aa3
	 	 	15.0%	
	A-/A3 or higher
	 	 	10.0%	
	BBB/Baa2 or higher
	 	 	5.0%	
	Non-Rated Included Investors(2)
	 	 	15.0%	
	Designated Investors(3)
	 	 	2.0%	

 

			
	 (1)	 	 Is the lower of the Rating of the Investor (or its Credit Provider, if
applicable) as issued by either Standard & Poor’s or Moody’s. If any Investor has only one Rating
from either Standard & Poor’s or Moody’s, then that Rating shall apply. For any Investor that is
an unrated subsidiary of a parent with a Rating, a guaranty from the rated parent entity is
required in order to apply the Concentration Limit applicable to the rated parent.
	 
	(2)	 	In the aggregate may not exceed 50% of the total aggregate Unfunded Capital
Commitment of all Investors at any time.
	 
	(3)	 	In the aggregate may not exceed 45% of the total aggregate Unfunded Capital
Commitment of all Investors at any time.

     (b) notwithstanding anything in clause (a) of this definition to the contrary, so long as Yale
University and/or any of its affiliates qualifies as an Included Investor and has a Rating of
AAA/Aaa, its Concentration Limit (collectively with any affiliates) will be 17%.

     “Indebtedness” means, as to any Person at a particular time, without duplication, all of the
following, whether or not included as indebtedness or liabilities in accordance with GAAP:

     (a) all obligations of such Person for borrowed money and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

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

     (c) all net obligations of such Person under any Swap Contract;

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

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

15

 

     (f) all Capital Leases and Synthetic Lease Obligations; and

     (g) all Guaranty Obligations of such Person in respect of any of the foregoing.

     For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any
partnership or joint venture (other than a joint venture that is itself a corporation or limited
liability company) in which such Person is a general partner or a joint venturer, unless such
Indebtedness is expressly made non-recourse to such Person. The amount of any net obligation under
any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such
date. The amount of any Capital Lease or Synthetic Lease Obligation as of any date shall be deemed
to be the amount of Attributable Indebtedness in respect thereof as of such date.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Indemnitee” is defined in Section 14.6(b) hereof.

     “Interest Component” means, with respect to a Conduit Lender, at any time of determination,
the aggregate for all Related Commercial Paper of such Conduit Lender at such time of: (a) with
respect to any Commercial Paper issued on an interest bearing basis, the interest payable on such
Commercial Paper at its maturity (including any dealer commissions); and (b) with respect to any
Commercial Paper issued on a discount basis, the portion of the face amount of such Commercial
Paper representing the discount incurred in respect thereof (including any dealer commissions).

     “Interest Period” means, (a) with respect to any Portion of Loans funded by the issuance of
Commercial Paper, (i) initially the period commencing on (and including) the date of the initial
purchase or funding of such Portion of Loans and ending on (and including) the last day of the
current calendar month, and (ii) thereafter, each period commencing on (and including) the first
day after the last day of the immediately preceding Interest Period for such Portion of Loans and
ending on (and including) the last day of the current calendar month; and (b) with respect to any
Portion of Loans not funded by the issuance of Commercial Paper, (i) initially the period
commencing on (and including) the date of the initial purchase or funding of such Portion of Loans
and ending on (but excluding) the next following Settlement Date, and (ii) thereafter, each period
commencing on (and including) a Settlement Date and ending on (but excluding) the next following
Settlement Date; provided, that

     (A) any Interest Period with respect to any Portion of Loans which would otherwise end
on a day which is not a Business Day shall be extended to the next succeeding Business Day;
provided, however, if Yield in respect of such Interest Period is computed by reference to
the LIBOR Rate, and such Interest Period would otherwise end on a day which is not a
Business Day, and there is no subsequent Business Day in the same calendar month as such
day, such Interest Period shall end on the next preceding Business Day;

     (B) in the case of any Interest Period for any Portion of Loans which commences before
the Maturity Date and would otherwise end on a date occurring after the Maturity Date, such
Interest Period shall end on (but exclude) such Maturity Date and

16

 

the duration of each
Interest Period which commences on or after the Maturity Date shall be of such duration as
shall be selected by the applicable Managing Agent; and

     (C) any Interest Period in respect of which Yield is computed by reference to the CP
Rate may be terminated at the election of applicable Managing Agent, in which case the
Portion of Loans allocated to such terminated Interest Period shall be allocated to a new
Interest Period commencing on (and including) the date of such termination and ending on
(but excluding) the next following Settlement Date, and shall accrue Yield at the Alternate
Rate.

     “Internal Revenue Code” means the United States Internal Revenue Code of 1986, as amended.

     “Investment Period” has the meaning provided in the Operating Agreement.

     “Investor” means each of Managing Member, Pledgor, any other member of Borrower or Stockholder
of Pledgor, as applicable.

     “Investor Letter” is defined in Section 5.1(b) hereof.

     “Investor Documents” means the Operating Agreement, the Stockholders Agreement, each Investor
Letter, and any amendments or supplements thereto or modifications thereof, executed or delivered
pursuant to the terms thereof and this Credit Agreement, and any additional documents delivered in
connection with any such amendment, supplement or modification.

     “ISP” means, with respect to any Letter of Credit, the “International Standby Practices 1998”
published by the Institute of International Banking Law & Practice (or such later version thereof
as may be in effect at the time of issuance).

     “Issuer Documents” means with respect to any Letter of Credit, the Request for Letter of
Credit, the Application and Agreement for Letter of Credit, and any other document, agreement and
instrument entered into by the Letter of Credit Issuer and a Borrower Party or in favor of the
Letter of Credit Issuer and relating to any such Letter of Credit.

     “L/C Advance” means, with respect to each Lender, such Lender’s funding of its participation
in any L/C Borrowing. All L/C Advances shall be denominated in Dollars.

     “L/C Borrowing” means an extension of credit resulting from a drawing under any Letter of
Credit which has not been reimbursed on the date when made or refinanced as a Borrowing. All L/C
Borrowings shall be denominated in Dollars.

     “Laws” means, collectively, all international, foreign, Federal, state and local statutes,
treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial
precedents or authorities, including the interpretation or administration thereof by any
Governmental Authority charged with the enforcement, interpretation or administration thereof, and
all applicable administrative orders, directed duties, requests, licenses, authorizations and

17

 

permits of, and agreements with, any Governmental Authority, in each case whether or not having the
force of law.

     “Lender” means each Conduit Lender and each Alternate Lender, as the context may require, and
collectively, the “Lenders”.

     “Lender Group” means each of: (a) the YC SUSI Lender Group; and (b) any other “Lender Group”
from time to time party hereto in accordance with the terms hereof as designated by the Managing
Agent of such group.

     “Lender Group Percentage” means, for any Lender Group, the percentage equivalent (carried out
to five decimal places) of a fraction the numerator of which is the aggregate Commitments or
Principal Obligation, as applicable, of all Lenders in such Lender Group and the denominator of
which is the aggregate Commitments or Principal Obligation, as applicable, of all Lenders in all
Lender Groups.

     “Lender Party” is defined in Section 13.1(a) hereof.

     “Lending Office” means, as to any Lender, the office or offices of such Lender (or an
affiliate of such Lender) identified on Schedule 14.7, or such other office or offices as a Lender
may from time to time notify Borrower and Administrative Agent.

     “Letter of Credit” means a standby letter of credit issued by the Letter of Credit Issuer
pursuant to Section 2.5 hereof in the form of Exhibit D-2 hereto (or such other form as approved by
the Letter of Credit Issuer) in Dollars either as originally issued or as the same may, from time
to time, be amended or otherwise modified or extended.

     “Letter of Credit Expiration Date” means the day that is the earlier of: (a) fifteen (15) days
prior to the Stated Maturity Date then in effect (or, if such day is not a Business Day, the next
preceding Business Day); or (b) the date upon which Administrative Agent declares the Obligations
due and payable after the occurrence of an Event of Default.

     “Letter of Credit Fees” is defined in Section 2.10 hereof.

     “Letter of Credit Issuer” means Bank of America, or any Lender or Affiliate of such Lender so
designated, and which accepts such designation, by Administrative Agent and approved by Borrower.

     “Letter of Credit Liability” means the aggregate amount of the undrawn face amount of all
outstanding Letters of Credit plus the amount drawn under Letters of Credit for which the Letter of
Credit Issuer and Lenders, or any one or more of them, have not yet received payment or
reimbursement (in the form of a conversion of such liability to Loans, or otherwise) as required
pursuant to Section 2.5. For all purposes of this Credit Agreement, if on any date of
determination a Letter of Credit has expired by its terms but any amount may still be drawn
thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be
deemed to be “outstanding” in the amount so remaining available to be drawn.

18

 

     “Letter of Credit Sublimit” means, at any time, seventy-five percent (75%) of the Facility
Amount at such time.

     “LIBOR Rate” means, for any Interest Period for any Portion of Loans for any Lender Group, a
rate per annum determined by Administrative Agent pursuant to the following formula:

	 	 	 	 	 
	LIBOR Rate =

	 	London Interbank Offered Rate                                   	 	 
	 

	 	1.00 — Eurocurrency Reserve Percentage 

	 	 
	 

	 		 	 

     where,

     “London Interbank Offered Rate” means, for such Interest Period:

(a) the rate per annum (carried out to the fifth decimal place) equal to the rate that
appears on the page of the Telerate Screen that displays an average British Bankers
Association Interest Settlement Rate (such page currently being page number 3750) for
deposits in Dollars (for delivery on the first day of such Interest Period) with a term
equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London time)
two Business Days prior to the first day of such Interest Period, or

(b) in the event that the rate referenced in the preceding subsection (a) does not appear on
such page or service or such page or service shall cease to be available, the rate per annum
(carried to the fifth decimal place) equal to the rate determined by Administrative Agent to
be the offered rate on such other page or other service that displays an average British
Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on the
first day of such Interest Period) with a term equivalent to such Interest Period,
determined as of approximately 11:00 a.m. (London time) two Business Days prior to the first
day of such Interest Period for a term comparable to such Interest Period, or

(c) in the event the rates referenced in the preceding subsections (a) or (b) are not
available, the rate per annum determined by Administrative Agent as the rate of interest at
which deposits in Dollars (for delivery on the first day of such Interest Period) in same
day funds in the approximate amount of the applicable Portion of Loans to be funded by
reference to the LIBOR Rate and with a term equivalent to such Interest Period would be
offered by its London Branch to major banks in the offshore interbank market at their
request at approximately 11:00 a.m. (London time) two Business Days prior to the first day
of such Interest Period; and

“Eurocurrency Reserve Percentage” means, for any day during any Interest Period, the maximum
effective reserve percentage (expressed as a decimal, carried out to the fifth decimal
place) in effect on such date, whether or not applicable to any Lender, under regulations
issued from time to time by the Board of Governors of the Federal Reserve System (or any
successor), as such regulation may be amended from time to time or any successor regulation,
for determining the maximum reserve requirement (including any supplemental, emergency, or
marginal reserve requirement) with respect to eurocurrency funding (currently referred to as
“eurocurrency liabilities”). The LIBOR Rate shall be

19

 

adjusted automatically on and as of the effective date of any change in the Eurocurrency
Reserve Percentage.

     “Lien” means any lien, mortgage, security interest, tax lien, pledge, encumbrance, or
conditional sale or title retention arrangement, or any other interest in property designed to
secure the repayment of indebtedness, whether arising by agreement or under any statute or law, or
otherwise.

     “Liquidity Commitment” means an amount equal to 102% of the Facility Amount in effect from
time to time.

     “Loan” means an extension of credit by a Lender to a Borrower Party pursuant to the terms and
conditions of this Credit Agreement, and “Loans” means the plural thereof. All Loans shall be
denominated in Dollars.

     “Loan Amount” is defined in Section 2.3(g) hereof.

     “Loan Date” is defined in Section 2.3(a) hereof.

     “Loan Deficit” is defined in Section 2.3(h) hereof.

     “Loan Documents” means this Credit Agreement, the Notes (including any renewals, extensions,
re-issuances and refundings thereof), each Application and Agreement for Letter of Credit, each of
the Collateral Documents, the Guaranty of Capital, each Assignment and Assumption Agreement and
such other agreements and documents, and any amendments or supplements thereto or modifications
thereof, executed or delivered pursuant to the terms of this Credit Agreement or any of the other
Loan Documents and any additional documents delivered in connection with any such amendment,
supplement or modification.

     “Loan Notice” means any notice substantially in the form of Exhibit C, containing the
information specified therein, executed and delivered by a Borrower Party.

     “Managing Agent” means, with respect to any Lender Group, the Person acting as Managing Agent
therefor and designated as such on the signature pages hereto or in the assignment pursuant to
which such Lender Group becomes a party hereto, and its successors and assigns.

     “Managing Member” is defined in the preamble to this Credit Agreement.

     “Margin Stock” shall have the meaning assigned to such term in Regulation U.

     “Material Adverse Effect” means any circumstances or events which could reasonably be expected
to: (a) have any material adverse effect upon the validity, performance, or enforceability of any
of the Loan Documents executed by Borrower, any Qualified Borrower, Managing Member, Guarantor or
Pledgor; (b) materially impair the ability of Borrower, Managing Member, Guarantor or Pledgor, or
any one of them, to fulfill their respective
obligations under the Loan Documents; (c) cause an Event of Default; or (d) impair, impede, or
jeopardize, in any material respect, the obligation or the liability of Borrower, Managing

20

 

Member,
Guarantor or Pledgor to fulfill its obligations under the Operating Agreement, Stockholders
Agreement or Partnership Agreement, as applicable.

     “Maturity Date” means the earliest of: (a) the Stated Maturity Date; (b) the date upon which
Administrative Agent declares the Obligations due and payable after the occurrence of an Event of
Default; (c) the date upon which Borrower terminates the Commitments pursuant to Section 3.6 hereof
or otherwise and (d) fifteen (15) Business Days prior to the end of the Investment Period.

     “Maximum Commitment” means an amount equal to $300,000,000, as it may be reduced by Borrower
pursuant to Section 3.6.

     “Maximum Rate” means, on any day, the highest rate of interest (if any) permitted by
applicable law on such day.

     “Membership Interest” means, with respect to any member of Borrower, the equity interest of
such member in Borrower.

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

     “Non-Defaulting Alternate Lender” is defined in Section 2.3(h) hereof.

     “Non-Extension Notice Date” is defined in Section 2.5(b)(iii) hereof.

     “Non-Rated Investor” means an Investor that is not a Rated Investor.

     “Non-Rated Included Investor” means an Included Investor that is not a Rated Investor.

     “Notes” means the promissory notes provided for in Section 3.1 hereof, and all promissory
notes delivered in substitution or exchange therefor, as such notes may be amended, restated,
reissued, extended or modified, and the Qualified Borrower Notes; and “Note” means any one of the
Notes.

     “Obligations” means all present and future Indebtedness, obligations, and liabilities of any
Credit Party to any of the Secured Parties, and all renewals and extensions thereof (including,
without limitation, Loans, Letters of Credit Liability, or both), or any part thereof, arising
pursuant to this Credit Agreement (including, without limitation, the indemnity provisions hereof)
or represented by the Notes and each Application and Agreement for Letter of Credit, and all
interest accruing thereon, and Attorney Costs incurred in the enforcement or collection thereof,
regardless of whether such indebtedness, obligations, and liabilities are direct, indirect, fixed,
contingent, joint, several, or joint and several; together with all indebtedness, obligations, and
liabilities of any Credit Party to any of the Secured Parties evidenced or arising pursuant to any
of the other Loan Documents, and all renewals and extensions thereof, or any part thereof.

     “Operating Agreement” means that certain Operating Agreement of Borrower, by and among
Managing Member and Pledgor dated as of May 15, 2007, as supplemented by that certain pledge
agreement, dated as of May 15, 2007, from Pledgor to Borrower, as each may be

21

 

restated, modified,
amended or supplemented from time to time, with the consent of Administrative Agent, the Letter of
Credit Issuer, and the Lenders to the extent expressly required hereby.

     “Operating Company” means an “operating company” within the meaning of 29 C.F.R.
§2510.3-101(c) of the regulations of the United States Department of Labor.

     “Other Taxes” means all present or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies arising from any payment made hereunder or under any
other Loan Document or from the execution, delivery or enforcement of, or otherwise with respect
to, this Credit Agreement or any other Loan Document.

     “Participant” is defined in Section 14.12(f).

     “Partnership Agreement” means that certain Agreement of Limited Partnership of Guarantor,
dated as of May 13, 2003, as previously restated, modified, amended or supplemented from time to
time, with the consent of the Administrative Agent, the Letter of Credit Issuer and the Lenders to
the extent expressly required hereby.

     “Pending Capital Call” means any Capital Call that has been made upon the Investors and that
has not yet been funded by the applicable Investor, but with respect to which such Investor is not
in default.

     “Person” means an individual, sole proprietorship, joint venture, association, trust, estate,
business trust, corporation, limited liability company, nonprofit corporation, partnership,
sovereign government or agency, instrumentality, or political subdivision thereof, or any similar
entity or organization.

     “Plan” means any plan, including single employer and multi-employer plans to which Section
4021(a) of ERISA applies, or any retirement medical plan, each as established or maintained for
employees of Borrower or any member of the Controlled Group to which Section 4021(a) of ERISA
applies.

     “Plan Asset Regulations” means 29 C.F.R §2510.3-101, et seq.

     “Plan Assets” means “plan assets” within the meaning of the Plan Asset Regulations.

     “Pledgor” is defined in the first paragraph hereof.

     “Portion of Loan” is defined in Section 2.4 hereof.

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

     “Principal Obligation” means the sum of: (a) the aggregate outstanding principal amount of the
Loans; plus (b) the Letter of Credit Liability.

22

 

     “Pro Rata Share” means, with respect to each Lender, the percentage obtained from the
fraction: (a) (i) the numerator of which is the Commitment of such Lender; and (ii) the
denominator of which is the aggregate Commitments of all Lenders; or (b) in the event the
Commitments are zero (0): (i) the numerator of which is the Principal Obligation outstanding with
respect to such Lender; and (ii) the denominator of which is the total Principal Obligation
outstanding.

     “Program Support Agreement” means and includes, with respect to any Conduit Lender, any
agreement entered into by any Program Support Provider providing for the issuance of one or more
letters of credit for the account of such Conduit Lender (or any related commercial paper issuer
that finances such Conduit Lender), the issuance of one or more surety bonds for which such Conduit
Lender (or such related issuer) is obligated to reimburse the applicable Program Support Provider
for any drawings thereunder, the sale by such Conduit Lender (or such related issuer) to any
Program Support Provider of its interests hereunder (or portions thereof or participations therein)
or the making of loans or other extensions of credit to such Conduit Lender (or such related
issuer) in connection with such Conduit Lender’s (or such related issuer’s) commercial paper
program, together with any letter of credit, surety bond or other instrument issued thereunder.

     “Program Support Provider” means and includes, with respect to any Conduit Lender, any Person
now or hereafter extending credit or having a commitment to extend credit to or for the account of,
or to make purchases from, such Conduit Lender (or any related commercial paper issuer that
finances such Conduit Lender) or issuing a letter of credit, surety bond or other instrument to
support any obligations arising under or in connection with such Conduit Lender’s (or such related
issuer’s) commercial paper program.

     “Prohibited Event” is defined in Section 4.7.

     “Property” means any real property, improvements thereon and any leasehold or similar interest
in real property which is owned, directly or indirectly, by any Borrower Party, or secures any
investment of any Borrower Party.

     “Qualified Borrower” means any entity, which entity may be organized in the United States or
outside of the United States, in which Borrower owns a direct or indirect ownership interest or
through which Borrower will acquire an investment, the indebtedness of which entity can be
guaranteed by Borrower pursuant to the terms of the Operating Agreement, and which entity has
executed a Qualified Borrower Note and in respect of which entity Borrower has executed a Borrower
Guaranty.

     “Qualified Borrower Letter of Credit Note” means a letter of credit note executed and
delivered by a Qualified Borrower, in the form of Exhibit B-3 attached hereto, the payment of
which is guaranteed by Borrower pursuant to a Borrower Guaranty, as such note may be amended,
restated, reissued, extended or modified.

     “Qualified Borrower Notes” means the Qualified Borrower Promissory Notes and the Qualified
Borrower Letter of Credit Notes, and “Qualified Borrower Note” means any one of them, as such note
may be amended, restated, reissued, extended or modified.

23

 

     “Qualified Borrower Promissory Note” means a promissory note executed and delivered by a
Qualified Borrower, in the form of Exhibit B-2 attached hereto, the payment of which is guaranteed
by Borrower pursuant to a Borrower Guaranty.

     “Rate Type” means the LIBOR Rate, the Base Rate or the CP Rate.

     “Rated Investor” means any Investor that has a Rating (or that has a Credit Provider, Sponsor,
or Responsible Party that has a Rating).

     “Rating” means, for any Person, its senior unsecured debt rating (or equivalent thereof, such
as, but not limited to, a corporate credit rating, issuer rating/insurance financial strength
rating (for an insurance company), general obligation rating (for a governmental entity), or
revenue bond rating (for an educational institution)) from either of S&P or Moody’s.

     “Register” is defined in Section 14.12(e) hereof.

     “Regulation T,” “Regulation U,” and “Regulation X” means Regulation T, U, or X, as the case
may be, of the Board of Governors of the Federal Reserve System, from time to time in effect, and
shall include any successor or other regulation relating to reserve requirements or margin
requirements, as the case may be, applicable to member banks of the Federal Reserve System.

     “Related Commercial Paper” means, with respect to any Conduit Lender, at any time of
determination, Commercial Paper of such Conduit Lender (or its related commercial paper issuer) the
proceeds of which are then allocated by the Administrator of such Conduit Lender (or its related
commercial paper issuer) as the source of funding the acquisition or maintenance of its Principal
Obligation hereunder.

     “Release” means any release, spill, emission, leaking, pumping, injection, deposit, disposal,
discharge, dispersal, leaching, or migration of Hazardous Materials into the environment, or into
or out of any Property, including the movement of any Hazardous Material through or in the air,
soil, surface water, groundwater, of any Property.

     “Request for Letter of Credit” means a request for the issuance of a Letter of Credit
substantially in the form of Exhibit D-1 hereto.

     “Required Lenders” means: (a) Alternate Lenders (other than Defaulting Alternate Lenders)
holding an aggregate of more than fifty (50%) of the aggregate Commitments of all Alternate Lenders
(other than Defaulting Alternate Lenders); or (b) at any time that the Available
Loan Amount is zero (0), Alternate Lenders (other than Defaulting Alternate Lenders) owed an
aggregate of more than fifty (50%) of the Principal Obligation outstanding and payable to all
Lenders (other than Defaulting Alternate Lenders) at such time (including, for purposes of such
calculation, each Alternate Lender’s Alternate Lender Pro Rata Share of that portion of the
Principal Obligations outstanding and payable to the Conduit Lender in its Lender Group).

     “Responsible Officer” means: (a) in the case of a corporation, its president, senior vice
president, any vice president or treasurer, and, in any case where two Responsible Officers are
acting on behalf of such corporation, the second such Responsible Officer may be a secretary or

24

 

assistant secretary; (b) in the case of a limited partnership, the Responsible Officer of the
general partner, acting on behalf of such general partner in its capacity as general partner; and
(c) in the case of a limited liability company, the chief executive officer, president, general
counsel, chief financial officer, or senior vice president of the managing member, acting on behalf
of such managing member in its capacity as managing member.

     “Responsible Party” means, for any Governmental Plan Investor: (a) if the state under which
the Governmental Plan Investor operates is obligated to fund the Governmental Plan Investor and is
liable to fund any shortfalls, the state; and (b) otherwise, the Governmental Plan Investor itself.

     “S&P” means Standard & Poor’s Rating Services, a division of the McGraw & Hill Companies, Inc.
and any successor thereto.

     “Secured Parties” means, collectively, the Lenders, Agents, Arranger, Letter of Credit Issuer,
Program Support Providers, Conduit Collateral Agents and Indemnitees, and “Secured Party” means any
of the foregoing.

     “Settlement Date” means the 12th day of each month (or, if such day is not a
Business Day, on the next succeeding Business Day); provided that after the Maturity Date, any
Business Day selected from time to time by Administrative Agent shall be a Settlement Date.

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

     “Sponsor” of an ERISA Investor means a sponsor as that term is understood under ERISA,
specifically, the entity that established the plan and is responsible for the maintenance of the
plan and, in the case of a plan that has a sponsor and participating employers, the entity that has
the ability to amend or terminate the plan.

     “Stockholder” means a holder of shares of the equity interests of Pledgor.

     “Stockholders Agreement” means the Stockholders Agreement of Pledgor, dated as of May 15,
2007, as the same may be amended, restated, supplemented or otherwise modified from time to time
with the consent of Administrative Agent, the Letter of Credit Issuer, and the Lenders to the
extent expressly required hereby.

25

 

     “Stockholders Interest” means, with respect to any Stockholder, its equity interest in
Pledgor.

     “Stated Maturity Date” means October 10, 2011.

     “Subsequent Investor” is defined in Section 11.5(c) hereof.

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

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

     “Synthetic Lease Obligation” means the monetary obligation of a Person under: (a) a so-called
synthetic, off-balance sheet or tax retention lease; or (b) an agreement for the use or
possession of property creating obligations that do not appear on the balance sheet of such
Person but which, upon the insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment).

     “Tax Indemnified Parties” means, collectively, the Letter of Credit Issuer, the Lenders,
Agents, the Program Support Providers and Conduit Collateral Agents, and “Tax Indemnified Party”
means any of the foregoing.

     “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings,
assessments, fees or other charges imposed by any Governmental Authority, including any interest,
additions to tax or penalties applicable thereto.

     “UCC” is defined in Section 8.1.

26

 

     “Unfunded Capital Commitment” means, with respect to any Investor at any time: (a) such
Investor’s Capital Commitment at such time, excluding (1) any Capital Commitment subject to a
Pending Capital Call and (2) returns of Capital Contributions, unless a confirmation certificate in
form and substance satisfactory to the Administrative Agent has been received by the Administrative
Agent from a Credit Party, reporting the returned Capital Contributions and providing the amounts
of the remaining unfunded Capital Commitments of the Investors; minus (b) such Investor’s aggregate
Capital Contributions made prior to such time.

     “Unreimbursed Amount” is defined in Section 2.5(c)(i) hereof.

     “Used Fee” has the meaning provided in the Fee Letter.

     “YC SUSI” means YC SUSI Trust, a Delaware Statutory Trust.

     “YC SUSI Alternate Lenders” means the Alternate Lenders in the YC SUSI Lender Group, as set
forth on the signature pages hereto or the applicable Assignment and Assumption Agreement.

     “YC SUSI Lender Group” means YC SUSI, any permitted Conduit Assignee thereof, the YC SUSI
Alternate Lenders from time to time party hereto and Bank of America, as Managing Agent.

     “Yield” means, the sum of:

     (a) for any Portion of Loans for any Lender Group during any Interest Period to the
extent a Conduit Lender funds such Portion of Loans through the issuance of Commercial Paper
(directly or indirectly through a related commercial paper issuer);

	 	 	 	 	 
	CPR x L x

	 	 	D	 
	 

	 	 	 	 
	 

	 	 	360	 

     (b) for any Portion of Loans funded by the Alternate Lenders and for any Portion of
Loans for any Lender Group to the extent the related Conduit Lender does not fund such
Portion of Loans through the issuance of Commercial Paper (directly or indirectly through a
related commercial paper issuer);

	 	 	 	 	 
	AR/BR x L x

	 	 	D	 
	 

	 	 	 	 
	 

	 	 	360	 

where:

AR/BR = the Alternate Rate or Base Rate, as applicable, for such Portion of
Loans for such Interest Period;

CPR = the CP Rate for such Portion of Loans for such Interest Period (as
determined by each applicable Administrator on or prior to the fifth
Business Day of the calendar month next following such Interest Period);

27

 

D = the actual number of days during such Interest Period, and

L = the amount of such Portion of Loans during such Interest Period;

     provided that no provision of this Credit Agreement shall require the payment or permit the
collection of Yield in excess of the Maximum Rate; and provided, further, that at all times during
the existence of an Event of Default or after the Maturity Date, Yield for all Portions of Loans
shall accrue at the Default Rate. Without limiting the obligation of any Borrower Party to pay
interest pursuant to Section 3.3, Yield shall include interest pursuant to Section 3.3 on the
Principal Obligation and all other Obligations not paid or deposited when due under this Credit
Agreement or under the Notes.

     1.2. Other Definitional Provisions.

     (a) All terms defined in this Credit Agreement shall have the above-defined meanings
when used in the Notes or any other Loan Documents or any certificate, report or other
document made or delivered pursuant to this Credit Agreement, unless otherwise defined in
such other document.

     (b) Defined terms used in the singular shall import the plural and vice versa.

     (c) The words “hereof,” “herein,” “hereunder,” and similar terms when used in this
Credit Agreement shall refer to this Credit Agreement as a whole and not to any particular
provisions of this Credit Agreement.

     (d) The term “including” is by way of example and not limitation. The term “documents”
includes any and all instruments, documents, agreements, certificates, notices, reports,
financial statements and other writings, however evidenced, whether in physical or
electronic form.

     (e) In the computation of periods of time from a specified date to a later specified
date, the word “from” means “from and including;” the words “to” and “until” each mean “to
but excluding;” and the word “through” means “to and including.”

     (f) Section headings herein and in the other Loan Documents are included for
convenience of reference only and shall not affect the interpretation of this Credit
Agreement or any other Loan Document.

     (g) Unless otherwise specified in the Loan Documents, time references are to time in
New York, New York.

     1.3. Letter of Credit Amounts. Unless otherwise specified, all references herein to the
amount of a Letter of Credit at any time shall be deemed to mean the maximum face amount of such
Letter of Credit after giving effect to all increases thereof contemplated by such Letter of Credit
or the documents issued in connection therewith, but only to the extent such maximum face amount is
in effect at such time.

28

 

2. LOANS AND LETTERS OF CREDIT

     2.1. The Commitment.

     (a) Committed Amount. Subject to the terms and conditions herein set forth, including
Sections 8.1, 8.2 (if applicable) and 8.3, Lenders having Commitments agree severally,
during the Availability Period: (i) to extend to Borrower or any Qualified Borrower a
revolving line of credit; and (ii) to participate in Letters of Credit issued by the Letter
of Credit Issuer for the account of Borrower or any Qualified Borrower.

     (b) Limitation on Borrowings. Notwithstanding anything to the contrary herein
contained, Lenders shall not be required to advance any Borrowing or cause the issuance of
any Letter of Credit hereunder if:

     (i) after giving effect to such Borrowing or issuance of such Letter of Credit:
(A) the Principal Obligation would exceed the Available Loan Amount; (B) the Letter
of Credit Liability would exceed the Letter of Credit Sublimit; or (C) any Implicit
Borrowing Base Deficit would exist; or

     (ii) an Event of Default or a Potential Default exists.

     (c) Exclusion Events. If any of the following events (each, an “Exclusion Event”)
shall occur with respect to any Designated Investor or any Included Investor or, if
applicable, the Sponsor, Responsible Party, or Credit Provider of such Investor (such
Investor hereinafter referred to as a “Defaulting Investor”):

     (i) it shall: (A) apply for or consent to the appointment of a receiver,
trustee, custodian, intervenor, or liquidator of itself or of all or a substantial
part of its assets; (B) file a voluntary petition as debtor in bankruptcy or admit
in writing that it is unable to pay its debts as they become due; (C) make a general
assignment for the benefit of creditors; (D) file a petition or answer seeking
reorganization or an arrangement with creditors or take advantage of any Debtor
Relief Laws; (E) file an answer admitting the material allegations of, or consent
to, or default in answering, a petition filed against it in any bankruptcy,
reorganization, or insolvency proceeding; or (F) take any personal, partnership,
limited liability company, corporate or trust action, as applicable, for the purpose
of effecting any of the foregoing;

     (ii) an order, order for relief, judgment, or decree shall be entered by any
court of competent jurisdiction or other competent authority approving a petition
seeking such Person’s reorganization or appointing a receiver, custodian, trustee,
intervenor, or liquidator of such Person or of all or substantially all of its
assets, and such order, judgment, or decree shall continue unstayed and in effect
for a period of sixty (60) days;

     (iii) any final judgment(s) for the payment of money which in the aggregate
exceed fifteen percent (15%) of its net worth shall be rendered against such Person,
and such judgment or judgments shall not be satisfied or discharged

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at least ten (10) days prior to the date on which any of its assets could be
lawfully sold to satisfy such judgment;

     (iv) such Investor shall repudiate, challenge, or declare unenforceable its
obligation to make contributions to the capital of the applicable Credit Party
pursuant to its Capital Commitment or a Call Notice; shall otherwise disaffirm any
material provision of the Operating Agreement, the Stockholders Agreement or the
Partnership Agreement, as applicable; or shall otherwise disaffirm any material
provision of its Investor Letter; or a court of competent jurisdiction finds such
Capital Commitment or the obligations under its Investor Letter unenforceable;

     (v) such Investor shall fail to make a contribution to the capital of the
applicable Credit Party when required pursuant to a Call Notice, subject to any
applicable notice or cure periods, or shall otherwise be in material default under
the Operating Agreement, the Stockholders Agreement, its Investor Letter or any Loan
Document, following any applicable notice requirements or cure periods;

     (vi) any representation or warranty made under its Investor Letter or any Loan
Documents executed by such Person shall prove to be untrue or inaccurate in any
material respect, as of the date on which such representation or warranty is made,
and such Person shall fail to cure the adverse effect of the failure of such
representation or warranty within thirty (30) days after written notice thereof is
delivered by Administrative Agent to Borrower and to such Person;

     (vii) such Investor shall transfer its Equity Interest in Borrower or Pledgor,
as applicable, in violation of this Credit Agreement;

     (viii) default shall occur in the performance by it of any of the covenants or
agreements contained in its Investor Letter, the Operating Agreement, the
Stockholders Agreement or the Partnership Agreement (except, in each case, as
otherwise specifically addressed in this Section 2.1(c), in which case no grace
period beyond any provided for herein shall apply) and such default shall continue
uncured to the satisfaction of Administrative Agent for a period of thirty (30) days
after written notice thereof has been given by Administrative Agent to Borrower and
to such Investor;

     (ix) in the case of each Included Investor that is a Rated Investor, it shall
fail to maintain the Applicable Requirement for such Investor required in the
definition of Applicable Requirement in Section 1 hereof;

     (x) in the case of any Non-Rated Included Investor, such Investor shall fail to
maintain a net worth (determined in accordance with Generally Accepted Accounting
Principles), measured at the end of each fiscal year of such Person, of at least
seventy-five percent (75%) of the initial net worth of such Investor, Sponsor,
Responsible Party, or Credit Provider measured at the end of the fiscal

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year preceding the designation of such Investor as an Included Investor
hereunder; or

     (xi) in the case of each Designated Investor and Non-Rated Included Investor,
following the occurrence of an event which materially adversely affects the ability
of such Investor to fulfill its obligations under the Operating Agreement or the
Stockholders Agreement, as applicable, and the Required Lenders elect to declare the
occurrence of an Exclusion Event with respect to such Investor,

then as of the Effective Removal Date for such Exclusion Event, such Investor shall no longer be a
Designated Investor or an Included Investor, as applicable, and Administrative Agent and the
Borrower Parties shall treat such Defaulting Investor’s Capital Commitment and Unfunded Capital
Commitment as zero (0) for purposes of: (A) calculating the aggregate Unfunded Capital Commitment
of the Designated Investors or Included Investors, as applicable, with respect to this Credit
Agreement; (B) calculating the Available Loan Amount and Borrowing Base; and (C) calculating
whether a mandatory prepayment is required to be made by Borrower pursuant to Section 2.1(d).

     (d) Mandatory Prepayment.

     (i) Excess Loans Outstanding. If, on any day, the Principal Obligation exceeds
the Available Loan Amount or if an Implicit Borrowing Base Deficit exists
(including, without limitation, as a result of an Exclusion Event), then the Credit
Parties shall pay on demand such excess or amount of Implicit Borrowing Base
Deficit, as applicable, to Administrative Agent, for the benefit of Lenders, in
immediately available funds (except to the extent any such excess is otherwise
addressed by Section 2.1(d)(ii): (A) promptly on demand (but in no event later than
one (1) Business Day), to the extent such funds are available in the Collateral
Account or another account maintained by Borrower; and (B) within fifteen (15)
Business Days of demand to the extent that it is necessary for a Credit Party to
issue Call Notices to fund such required payment (and the Credit Parties shall issue
such Call Notices during such time, and shall pay such excess or amount of Implicit
Borrowing Base Deficit, as applicable, immediately after the Capital Contributions
relating to such Call Notice are received); provided that the amount of such excess
shall be paid to Administrative Agent concurrently with the creation of such excess
or deficit if it results from any willful act of any Credit Party. The Credit
Parties hereby agree that Administrative Agent may withdraw from the Collateral
Account any Capital Contributions deposited therein in respect of such Call Notices
until the payment obligations required by this Section 2.1(d)(i) have been satisfied
in full.

     (ii) Excess Letters of Credit Outstanding. If any excess or amount of Implicit
Borrowing Base Deficit, as applicable, calculated pursuant to Section 2.1(d)(i) is
attributable to undrawn Letters of Credit, the Credit Parties shall Cash
Collateralize the Letter of Credit Liability in the amount of such excess or
Implicit Borrowing Base Deficit, as applicable, when required pursuant to the

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terms of Section 2.1(d)(i), as security for such portion of the Obligations.
Unless otherwise required by law, upon: (i) a change in circumstances such that the
Principal Obligation no longer exceeds the Available Loan Amount; or (ii) the full
and final payment of the Obligations, Administrative Agent shall return to the
Credit Parties (or the applicable Qualified Borrower) any amounts remaining in said
cash collateral account.

     (e) Loans in Dollars. Each Loan made pursuant to this Credit Agreement shall be both
funded and payable in Dollars.

     2.2. Revolving Credit Commitment. Subject to the terms and conditions herein set forth, each
Alternate Lender severally agrees, on any Business Day during the Availability Period, to make
Loans to Borrower or any Qualified Borrower at any time and from time to time in an aggregate
principal amount up to such Lender’s Commitment at any such time; provided, however, that, after
making such Loans: (a) such Lender’s Pro Rata Share of the Principal Obligation would not exceed
such Lender’s Commitment as of such date; and (b) the Principal Obligation of such Lender’s Lender
Group would not exceed the aggregate Commitment of the Alternate Lenders in such Lender Group.
Subject to the foregoing limitation, the conditions set forth in Section 8 and the other terms and
conditions hereof, Borrower or any Qualified Borrower may borrow, repay without penalty or premium,
and re-borrow hereunder, during the Availability Period. Each Borrowing pursuant to this Section
2.2 shall be funded ratably by each Lender Group in accordance with its Lender Group Percentage.
No Lender shall be obligated to fund any Loan if the interest rate applicable thereto under Section
2.11 hereof would exceed the Maximum Rate in effect with respect to such Loan.

     2.3. Borrowing Procedures.

     (a) Loan Notice. The applicable Borrower Party may request a Loan hereunder by
delivering to Administrative Agent, by electronic mail, facsimile or by telephone notice
followed by the written confirmation via electronic mail or other evidence of writing, a
Loan Notice, appropriately completed and signed by a Responsible Officer of such Borrower
Party (and each Loan Notice submitted by a Qualified Borrower must be countersigned by a
Responsible Officer of Borrower), no later than 11:00 a.m. at least two (2) Business Days
prior to the proposed date of any Loan (including the initial Loan). Each such Loan Notice
shall specify: (i) the desired amount of such Loan, which shall be (a) at least $500,000 at
all times when there is only one Alternate Lender party hereto, and (b) at least $1,000,000
at all times when there are two or more Alternate Lenders party hereto; (ii) the desired
date of such Loan (the “Loan Date”), which shall be a Business Day; and (iii) such other
information as is required by the form of such Loan Notice. Each Loan Notice submitted by
such Borrower Party shall be deemed to constitute a representation and warranty by the
applicable Borrower Party that: (i) the representations and warranties set forth in Section
9 hereof are true and correct in all material respects on and as of the date of such Loan
Notice, with the same force and effect as if made on and as of such date (except to the
extent of changes in facts or circumstances that have been disclosed to the Administrative
Agent and do not constitute an Event of Default or a Potential Default under this Credit
Agreement or any other Loan Document); (ii) no Event of Default or, to its knowledge,
Potential Default

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exists and is continuing at such date; (iii) the conditions specified in Sections 8.1,
8.2 (if applicable) and 8.3, have been or will be satisfied as of the Loan Date; and (iv)
after giving effect to such Borrowing, the Principal Obligation will not exceed the
Available Loan Amount as of such date. No Loan Notice shall be valid hereunder for any
purpose unless it shall have been accompanied or preceded by the information and other
documents required to be delivered in accordance with this Section 2.3. All Loans hereunder
shall be made by each Lender Group on a pro rata basis based on the Lender Group Percentage
of each Lender Group.

     (b) Further Information. Each Loan Notice shall be accompanied or preceded by: (A) a
Borrowing Base Certificate dated the date of such Loan Notice; and (B) such documents as are
required to satisfy any applicable conditions precedent as provided in Section 8.2.

     (c) Notification of Conduit Lender. Administrative Agent will promptly notify each
Managing Agent of Administrative Agent’s receipt of any Loan Notice, and each Managing Agent
will promptly notify each of the Lenders in its Lender Group. If the Loan Notice is
received prior to the Conduit Investment Termination Date for a Conduit Lender, such Conduit
Lender (or its Administrator on its behalf) shall instruct Administrative Agent to accept or
reject such Loan Notice by notice given to Administrative Agent and the applicable Borrower
Party by telephone or facsimile by no later than the close of its business on the later of
the Business Day of its receipt of any such Loan Notice or the Business Day prior to the
applicable Loan Date.

     (d) Loan Notice Irrevocable. Each Loan Notice shall be irrevocable and binding on such
Borrower and any applicable Qualified Borrower, and Borrower (and, if applicable, the
Qualified Borrower) shall indemnify Lenders against any cost, loss, or expense incurred by
Lenders, or any of them, as a result of any failure to fulfill, on or before the date
specified in the Loan Notice, the conditions to such Borrowing set forth herein, including,
without limitation, any cost, loss, or expense incurred by reason of the liquidation or
redeployment of the deposits or other funds acquired by Lenders, or any of them, to fund the
Borrowing to be made by Lenders as a part of such Borrowing when such Borrowing, as a result
of such failure, is not made on such date (including, in the case of a Conduit Lender,
pursuant to a Program Support Agreement), except with respect to a Borrowing for a Loan at
the Base Rate, as to which Borrower shall not be required to indemnify Lenders against such
costs, losses or expenses incurred by Lenders as a result of such liquidation or
redeployment of funds. A certificate of Administrative Agent setting forth the amount of
any such cost, loss or expense, and the basis for the determination thereof and the
calculation thereof, shall be delivered to Borrower and the applicable Qualified Borrower
and shall, in the absence of a manifest error, be conclusive and binding

     (e) Alternate Lender’s Commitment. At no time will any Conduit Lender have any
obligation to fund a Loan or participate in any Letter of Credit. At all times on and after
the Conduit Investment Termination Date for a Conduit Lender or if a Conduit Lender has
failed for whatever reason to fund its portion of a Borrowing in full, all Loans and
participations in Letters of Credit shall be made by the Alternate Lenders of the

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related Lender Group. At any time when a Conduit Lender has rejected a request for
Loan (it being understood that if a Conduit Lender does not fund any Loan in relation to
which all of the conditions precedent set forth in Section 8.2 (if applicable) and Section
8.3 have been satisfied on the date set forth in the applicable Loan Notice, such Conduit
Lender shall be deemed to have rejected the request for Loan), the related Managing Agent
shall so notify the related Alternate Lenders and such Alternate Lenders shall make such
Loan, on a pro rata basis, in accordance with their respective Alternate Lender Pro Rata
Shares. Notwithstanding anything contained in this Section 2.3(e) or elsewhere in this
Credit Agreement to the contrary, no Alternate Lender shall be obligated to provide
Administrative Agent or any Borrower Party with funds in connection with a Loan in an amount
that would result in the sum of the portion of the Loans then funded by it plus such
Alternate Lender’s Alternate Lender Pro Rata Share of the applicable Lender Group Percentage
of the Letter of Credit Liability exceeding its Commitment then in effect (minus the
unrecovered principal amount of such Alternate Lender’s investments in the Principal
Obligation pursuant to the Program Support Agreement to which it is a party). The
obligation of each Alternate Lender to remit its Alternate Lender Pro Rata Share of any such
Loan requested of its Lender Group shall be several from that of each other Alternate
Lender, and the failure of any Alternate Lender to so make such amount available to
Administrative Agent shall not relieve any other Alternate Lender of its obligation
hereunder.

     (f) Payment of Loan. On any Loan Date, each Conduit Lender or each Alternate Lender, as
the case may be, shall remit its share of the aggregate amount of such Loan to
Administrative Agent, by wire transfer of immediately available funds to Administrative
Agent for the account of the appropriate Borrower Party no later than 12:00 noon.
Administrative Agent shall in turn forward the same in immediately available funds to the
appropriate Borrower Party’s account at Administrative Agent specified in the Loan Notice,
or, if requested by the applicable Borrower Party in the Loan Notice, wire transfer such
funds as requested.

     (g) Managing Agents May Advance Funds. Unless a Managing Agent shall have received
notice from any Lender in its Lender Group that such Person will not make its share of any
Loan available on the applicable Loan Date therefor (for purposes of this paragraph only,
the “Loan Amount”), such Managing Agent may (but shall have no obligation to) make any such
Lender’s share of any such Loan available to the applicable Borrower Party in anticipation
of the receipt by such Managing Agent of such Loan Amount from the applicable Lender. To
the extent any such Lender fails to remit such Loan Amount to such Managing Agent after any
such advance by such Managing Agent on such Loan Date, such Lender shall be required to pay
such Loan Amount for its own account, together with interest thereon at a per annum rate
equal to the Federal Funds Rate to such Managing Agent upon its demand therefor. If such
Lender does not pay such Loan Amount together with such interest, such Managing Agent will
promptly notify the Borrower, and Borrower shall immediately pay such Loan Amount to
Administrative Agent (for distribution to the applicable Managing Agent), together with
interest thereon from the applicable Loan Date through the date such Loan Amount is repaid
to Administrative Agent promptly on demand, to the extent such funds are available in the
Collateral Account; and otherwise, to the extent that it is necessary for

34

 

Borrower to issue Call Notices to fund such required payment, within fifteen (15)
Business Days after Administrative Agent’s demand (but, in any event, the Credit Parties
shall issue such Call Notices and shall make such payment promptly after the related Capital
Contributions are received); or (ii) from any Qualified Borrower (as applicable), promptly
on demand; in each case, together with interest at a rate per annum equal to the rate
applicable to the requested Borrowing for the period commencing on the borrowing date and
ending on (but excluding) the date Administrative Agent recovers the amount from Borrower.
Until such amount shall be repaid, such amount shall be deemed to be a Loan funded by the
applicable Managing Agent and such Managing Agent shall be deemed to be the owner of such
Loan. Upon the payment of such amount to Administrative Agent by such Lender, such payment
shall constitute such Person’s payment of its share of the applicable Loan.

     (h) Defaulting Alternate Lender. If, by 2:00 p.m. on any Loan Date or Assignment Date,
as applicable, whether or not any Managing Agent has advanced the amount of the applicable
Loan or paid the applicable Assignment Amount, one or more Alternate Lenders in a Lender
Group (each, a “Defaulting Alternate Lender”, and each Alternate Lender other than any
Defaulting Alternate Lender being referred to as a “Non-Defaulting Alternate Lender”) fails
to make its share of any Loan available to Administrative Agent pursuant to Section 2.3(f)
or any Assignment Amount payable by it pursuant to Section 7.1 (the aggregate amount not so
made available to Administrative Agent being herein called in either case the “Loan
Deficit”), then such Alternate Lender’s Managing Agent shall, by no later than 2:30 p.m. on
the applicable Loan Date or the applicable Assignment Date, as the case may be, instruct
each Non-Defaulting Alternate Lender in such Lender Group to pay, by no later than 3:00 p.m.
on such date, in immediately available funds, to the account designated by Administrative
Agent, an amount equal to the lesser of: (i) such Non-Defaulting Alternate Lender’s
proportionate share (based upon the relative Commitments of the Non-Defaulting Alternate
Lenders) of the Loan Deficit with respect to such Lender Group; and (ii) its unused
Commitment. A Defaulting Alternate Lender shall forthwith, upon demand, pay to its related
Managing Agent for the ratable benefit of the Non-Defaulting Alternate Lenders all amounts
paid by each Non-Defaulting Alternate Lender on behalf of such Defaulting Alternate Lender,
together with interest thereon, for each day from the date a payment was made by a
Non-Defaulting Alternate Lender until the date such Non Defaulting Alternate Lender has been
paid such amounts in full, at a rate per annum equal to the Default Rate. In addition, if,
after giving effect to the provisions of the immediately preceding sentence, any Loan
Deficit with respect to any Assignment Amount continues to exist, each such Defaulting
Alternate Lender shall pay interest to the related Managing Agent, for the account of the
related Conduit Lender, on such Defaulting Alternate Lender’s portion of such remaining Loan
Deficit, at a rate per annum, equal to the Default Rate, for each day from the applicable
Assignment Date until the date such Defaulting Alternate Lender shall pay its portion of
such remaining Loan Deficit in full to such Conduit Lender.

     (i) Intent to Fund. Subject to Section 2.4, each Conduit Lender confirms with Borrower
that it intends to fund all Loans hereunder through the issuance of its Commercial Paper to
the extent reasonably available prior to the occurrence of an Event of Default or Potential
Default.

35

 

     2.4. Determination of Yield and Interest Periods. For purposes of determining the Interest
Period applicable to each Loan and of calculating Yield with respect thereto, each applicable
Managing Agent shall allocate the Loans of the Lenders in its Lender Group to tranches (each a
“Portion of Loan”). Any Portion of Loan funded by a Conduit Lender may from time to time be funded
through the issuance of Commercial Paper or pursuant to a Program Support Agreement, in the sole
discretion of such Conduit Lender. Any Portion of Loan funded by the Alternate Lenders or the
applicable Program Support Providers shall accrue Yield at the Alternate Rate or Base Rate, as
selected by the Borrower. Any Portion of Loan funded by the Conduit Lenders through the issuance
of Commercial Paper shall accrue Yield at the applicable CP Rate. At any time, each Portion of
Loan shall have only one Interest Period and one Rate Type. The aggregate Portions of Loans of
each Lender Group at all times shall be equal to the Loans of such Lender Group, and at any time
when the Loans are not divided into two or more portions, the term “Portion of Loans” shall mean
100% of the Loans of such Lender Group.

     2.5. Letters of Credit.

     (a) Letter of Credit Commitment.

     (i) Subject to the terms and conditions hereof, on any Business Day during the
Availability Period: (A) the Letter of Credit Issuer agrees, in reliance upon the
agreements of the Lenders set forth in this Section 2.5: (1) from time to time on
any Business Day during the period from the Closing Date until the Letter of Credit
Expiration Date, to issue Letters of Credit denominated in Dollars for the account
of a Borrower Party, in aggregate face amounts that shall be not less than $500,000
(provided, however, three (3) Letters of Credit for amounts less than $500,000 may
be issued each calendar year), as a Borrower Party may request, and to amend or
extend Letters of Credit previously issued by it; and (2) to honor drawings under
the Letters of Credit; and (B) the Alternate Lenders severally agree to participate
in Letters of Credit issued for the account of a Borrower Party and any drawings
thereunder; provided that after giving effect to an issuance of a Letter of Credit;
(1) the Principal Obligation will not exceed the Available Loan Amount on such date;
(2) no Implicit Borrowing Base Deficit shall exist and (3) the Letter of Credit
Liability will not exceed the Letter of Credit Sublimit. Within the foregoing
limits, and subject to the terms and conditions hereof, a Borrower Party’s ability
to obtain Letters of Credit shall be fully revolving, and accordingly a Borrower
Party may, during the foregoing period, obtain Letters of Credit to replace Letters
of Credit that have expired or that have been drawn upon and reimbursed. The Letter
of Credit Issuer shall have the right to approve the form of Letter of Credit
requested.

     (ii) The Letter of Credit Issuer shall not issue or extend any Letter of
Credit, if: (A) subject to Section 2.5(b)(iii), the expiration date of such Letter
of Credit would occur more than twelve (12) months after the date of issuance or
last extension, unless the Letter of Credit Issuer has approved such expiry date in
its sole discretion; or (B) the expiration date of such Letter of Credit would occur
after the date fifteen (15) Business Days prior to the Stated Maturity Date, unless
the Borrower or applicable Qualified Borrower shall Cash Collateralize the then-

36

 

outstanding Letter of Credit Liability in respect of such Letter of Credit
fifteen (15) Business Days prior to the then-applicable Stated Maturity Date, and
such Letter of Credit has an expiration date that is not later than twelve (12)
months following the Stated Maturity Date.

     (iii) The Letter of Credit Issuer shall be under no obligation to issue any
Letter of Credit if: (A) any order, judgment or decree of any Governmental Authority
or arbitrator shall by its terms purport to enjoin or restrain the Letter of Credit
Issuer from issuing such Letter of Credit, or any Law applicable to the Letter of
Credit Issuer or any request or directive (whether or not having the force of law)
from any Governmental Authority with jurisdiction over the Letter of Credit Issuer
shall prohibit, or request that the Letter of Credit Issuer refrain from, the
issuance of letters of credit generally or such Letter of Credit in particular or
shall impose upon the Letter of Credit Issuer with respect to such Letter of Credit
any restriction, reserve or capital requirement (for which the Letter of Credit
Issuer is not otherwise compensated hereunder) not in effect on the Closing Date, or
shall impose upon the Letter of Credit Issuer any unreimbursed loss, cost or expense
which was not applicable on the Closing Date and which the Letter of Credit Issuer
in good faith deems material to it; (B) the issuance of such Letter of Credit would
violate any Laws or one or more policies of the Letter of Credit Issuer; (C) such
Letter of Credit is to be denominated in a currency other than Dollars; (D) such
Letter of Credit contains any provisions for automatic reinstatement of the stated
amount after any drawing thereunder; or (E) a default of any Lender’s obligations to
fund hereunder exists or any Lender is at such time a Defaulting Alternate Lender
hereunder, unless the Letter of Credit Issuer has entered into satisfactory
arrangements with the Borrower Parties or such Lender to eliminate the Letter of
Credit Issuer’s risk with respect to such Lender.

     (iv) The Letter of Credit Issuer shall be under no obligation to amend any
Letter of Credit if: (A) the Letter of Credit Issuer would have no obligation at
such time to issue such Letter of Credit in its amended form under the terms hereof;
or (B) the beneficiary of such Letter of Credit does not accept the proposed
amendment to such Letter of Credit.

(b) Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters
of Credit.

     (i) Each Letter of Credit shall be issued or amended, as the case may be, upon
the request of a Borrower Party delivered to the Letter of Credit Issuer (with a
copy to Administrative Agent) in the form of a Request for Letter of Credit and an
Application and Agreement for Letter of Credit, together with a Borrowing Base
Certificate, each appropriately completed and signed by a Responsible Officer of
such Borrower Party. Such Request for Letter of Credit must be received by the
Letter of Credit Issuer and Administrative Agent not later than 11:00 a.m. at least
two (2) Business Days prior to the proposed issuance date or date of amendment, as
the case may be, of any Letter of Credit (or such later date and time as
Administrative Agent and the Letter of Credit Issuer may agree

37

 

in a particular instance in their sole discretion). In the case of a request
for an initial issuance of a Letter of Credit, such Request for Letter of Credit
shall specify in form and detail satisfactory to the Letter of Credit Issuer: (A)
the proposed issuance date of the requested Letter of Credit (which shall be a
Business Day); (B) the amount thereof; (C) the expiry date thereof; (D) the name and
address of the beneficiary thereof; (E) the documents to be presented by such
beneficiary in case of any drawing thereunder; (F) the full text of any certificate
to be presented by such beneficiary in case of any drawing thereunder; and (G) such
other matters as the Letter of Credit Issuer may reasonably require. In the case of
a request for an amendment of any outstanding Letter of Credit, the related Request
for Letter of Credit shall specify in form and detail satisfactory to the Letter of
Credit Issuer: (1) the Letter of Credit to be amended; (2) the proposed date of
amendment thereof (which shall be a Business Day); (3) the nature of the proposed
amendment; and (4) such other matters as the Letter of Credit Issuer may reasonably
require. Additionally, the applicable Borrower Party shall furnish to the Letter of
Credit Issuer and Administrative Agent such other documents and information
pertaining to such requested Letter of Credit issuance or amendment, including any
Issuer Documents, as the Letter of Credit Issuer or Administrative Agent may
reasonably require.

     (ii) Promptly after receipt of any Request for Letter of Credit, the Letter of
Credit Issuer will confirm with Administrative Agent (by telephone or in writing)
that Administrative Agent has received a copy of such Request for Letter of Credit
from a Borrower Party and, if not, the Letter of Credit Issuer will provide
Administrative Agent with a copy thereof. The Letter of Credit Issuer shall also
promptly notify each Managing Agent (which in turn shall promptly notify each Lender
in its Lender Group) of the Request for Letter of Credit and the terms thereof.
Unless the Letter of Credit Issuer has received written notice from any Lender,
Administrative Agent or any Borrower Party, at least one (1) Business Day prior to
the requested date of issuance or amendment of the applicable Letter of Credit, that
one or more applicable conditions contained in Section 8 shall not then be
satisfied, then, subject to the terms and conditions hereof, the Letter of Credit
Issuer shall, on the requested date, issue a Letter of Credit for the account of
such Borrower Party or enter into the applicable amendment, as the case may be, in
each case in accordance with the Letter of Credit Issuer’s usual and customary
business practices.

     (iii) If a Borrower Party so requests in any applicable Request for Letter of
Credit, the Letter of Credit Issuer may, in its sole and absolute discretion, agree
to issue a Letter of Credit that has automatic extension provisions (each, an
“Auto-Extension Letter of Credit”); provided that any such Auto-Extension Letter of
Credit must permit the Letter of Credit Issuer to prevent any such extension at
least once in each twelve-month period (commencing with the date of issuance of such
Letter of Credit) by giving prior notice to the beneficiary thereof not later than a
Business Day (the “Non-Extension Notice Date”) in each such twelve-month period to
be agreed upon at the time such Letter of Credit is issued. Unless otherwise
directed by the Letter of Credit

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Issuer, a Borrower Party shall not be required to make a specific request to
the Letter of Credit Issuer for any such extension. Once an Auto-Extension Letter
of Credit has been issued, the Lenders shall be deemed to have authorized (but may
not require) the Letter of Credit Issuer to permit the extension of such Letter of
Credit at any time to an expiry date not later than the Letter of Credit Expiration
Date; provided, however, that the Letter of Credit Issuer shall not permit any such
extension if: (A) the Letter of Credit Issuer has determined that it would not be
permitted, or would have no obligation, at such time to issue such Letter of Credit
in its revised form (as extended) under the terms hereof (by reason of the
provisions of clause (ii) or (iii) of Section 2.5(a) or otherwise); or (B) it has
received notice (which may be by telephone or in writing) on or before the day that
is five Business Days before the Non-Extension Notice Date: (1) from Administrative
Agent that the Required Lenders have elected not to permit such extension; or (2)
from Administrative Agent, any Lender or any Borrower Party that one or more of the
applicable conditions specified in Section 8.2 and, if applicable, Section 8.3, is
not then satisfied, and in each such case directing the Letter of Credit Issuer not
to permit such extension.

     (iv) Promptly after its delivery of any Letter of Credit or any amendment to a
Letter of Credit to an advising bank with respect thereto or to the beneficiary
thereof, the Letter of Credit Issuer will also deliver to the applicable Borrower
Party and Administrative Agent and each Managing Agent a true and complete copy of
such Letter of Credit or amendment.

     (v) Whenever the Letter of Credit Issuer issues a Letter of Credit, each
Alternate Lender shall, automatically and without further action of any kind upon
the effective date of issuance of such Letter of Credit, have irrevocably (i) agreed
to acquire a participation interest therein in an amount equal to its Alternate
Lender Pro Rata Share of its Lender Group Percentage of the Letter of Credit
Liability attributable to such Letter of Credit and (ii) committed to make a Loan
hereunder equal to its Alternate Lender Pro Rata Share of its Lender Group
Percentage of the applicable reimbursement amount in the event that such Letter of
Credit is subsequently drawn and such drawn amount shall not have been reimbursed by
a Borrower Party upon such draw or a Loan with respect to such unreimbursed draw is
not made by such Alternate Lender’s related Conduit Lender. In the event that any
Letter of Credit expires or is surrendered to the Letter of Credit Issuer without
being drawn (in whole or in part) then, in such event, the foregoing commitment to
make Loans with respect to draws under such Letter of Credit shall expire with
respect to such Letter of Credit and the Letter of Credit Liability shall
automatically reduce by the amount of the Letter of Credit which is no longer
outstanding. Each Lender shall share in all rights and obligations resulting
therefrom, in accordance with such participation interest, including, without
limitation: (i) the right to receive from Administrative Agent its share of any
reimbursement of the amount of each draft drawn under each Letter of Credit,
including any interest payable with respect thereto; (ii) the right to receive from
the Letter of Credit Issuer its share of the Letter of Credit Fees pursuant to
Section 2.10 hereof; (iii) the right to receive from the Letter of Credit

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Issuer its additional costs pursuant to Section 4 hereof; and (iv) the
obligation to reimburse Administrative Agent in the form of a Loan to the applicable
Borrower Party hereunder upon receipt of notice of any payment by the Letter of
Credit Issuer.

     (c) Drawings and Reimbursements; Funding of Participation.

     (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of
a drawing under such Letter of Credit, the Letter of Credit Issuer shall notify the
applicable Borrower Party and Administrative Agent thereof. Not later than 11:00
a.m. on the date of any payment by the Letter of Credit Issuer under a Letter of
Credit (each such date, an “Honor Date”), the applicable Borrower Party shall
reimburse the Letter of Credit Issuer through the Administrative Agent in an amount
equal to the amount of such drawing. If a Borrower Party fails to so reimburse the
Letter of Credit Issuer by such time, the Administrative Agent shall promptly notify
each Managing Agent of the Honor Date, the amount of the unreimbursed drawing (the
“Unreimbursed Amount”), and the amount of such Lender Group’s Lender Group
Percentage thereof. Each such notice by the Letter of Credit Issuer shall be
treated as a Loan Notice by the applicable Borrower Party. In such event, the
applicable Borrower Party shall be deemed to have requested a Borrowing to be
disbursed on the Honor Date in an amount equal to the Unreimbursed Amount, without
regard to the minimum and multiples specified in Section 2.3, but subject to the
amount of the unutilized portion of the Available Loan Amount and the conditions set
forth in Section 8.2, if applicable, and Section 8.3 (other than the delivery of a
Loan Notice). Any notice given by the Letter of Credit Issuer or Administrative
Agent pursuant to this Section 2.5(c)(i) may be given by telephone if immediately
confirmed in writing; provided that the lack of such an immediate confirmation shall
not affect the conclusiveness or binding effect of such notice.

     (ii) If the Letter of Credit Issuer so notifies a Managing Agent prior to 11:00
a.m. on any Business Day, such Managing Agent’s related Lender Group shall make
available to Administrative Agent, for the account of the Letter of Credit Issuer,
its Lender Group Percentage of the Unreimbursed Amount by 4:30 p.m. on such Business
Day (or a subsequent day specified by Administrative Agent) in immediately available
funds. If the Letter of Credit Issuer so notifies a Managing Agent after 11:00 a.m.
on any Business Day, such Managing Agent’s related Lender Group shall make available
to Administrative Agent for the account of the Letter of Credit Issuer its Lender
Group Percentage of the Unreimbursed Amount by 12:00 noon on the next Business Day
(or a subsequent day specified by Administrative Agent) in immediately available
funds. If any amounts have been deposited into a segregated interest-bearing cash
collateral account for the purpose of Cash Collateralizing the Letter of Credit
Liability, the Letter of Credit Issuer shall use such funds to satisfy any drawings
under the Letters of Credit prior to notifying the Managing Agents of the need for a
Loan with respect thereto. Lenders may conclusively rely on the Letter of Credit
Issuer as to the amount due Administrative Agent by reason of any draft of a Letter
of

40

 

Credit or due the Letter of Credit Issuer under any Application and Agreement
for Letter of Credit. If any payment received by Administrative Agent pursuant to
this Section 2.5(c) is required to be returned under any of the circumstances
described in Section 14.4, each Alternate Lender shall pay to Administrative Agent
for the account of the Letter of Credit Issuer its Alternate Lender Pro Rata Share
of the related Lender Group Percentage thereof on demand of Administrative Agent,
plus interest thereon from the date of such demand to the date such amount is
returned by such Lender, at a rate per annum equal to the Federal Funds Rate from
time to time in effect.

     (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a
Borrowing because the conditions set forth in Section 8.2, if applicable, and
Section 8.3, cannot be satisfied or for any other reason, the applicable Borrower
Party shall be deemed to have incurred from the Letter of Credit Issuer an L/C
Borrowing in the amount of the Unreimbursed Amount that is not so refinanced, which
L/C Borrowing shall be due and payable on demand (together with interest) and shall
bear interest at the Default Rate. In such event, each Lender Group’s payment to
Administrative Agent for the account of the Letter of Credit Issuer pursuant to
Section 2.5(c)(i) shall be deemed payment in respect of its participation in such
L/C Borrowing and shall constitute an L/C Advance from the applicable Lenders in
such Lender Group in satisfaction of its participation obligation under this Section
2.5.

     (iv) Until each applicable Lender in each Lender Group funds its Loan or L/C
Advance pursuant to this Section 2.5(c) to reimburse the Letter of Credit Issuer for
any amount drawn under any Letter of Credit, interest in respect of such Lender
Group’s Lender Group Percentage of such amount shall be solely for the account of
the Letter of Credit Issuer.

     (v) Each Alternate Lender’s obligation to make Loans or L/C Advances to
reimburse the Letter of Credit Issuer for amounts drawn under Letters of Credit, as
contemplated by this Section 2.5(c), shall be absolute and unconditional and shall
not be affected by any circumstance, including: (A) any set-off, counterclaim,
recoupment, defense or other right which such Lender may have against the Letter of
Credit Issuer, any Credit Party, or any other Person for any reason whatsoever; (B)
the occurrence or continuance of a Potential Default or Event of Default; or (C) any
other occurrence, event or condition, whether or not similar to any of the
foregoing; provided, however, that each Alternate Lender’s obligation to make Loans
pursuant to this Section 2.5(c) is subject to the conditions set forth in Section
8.2, if applicable, and Section 8.3 (other than delivery of a Loan Notice). No such
making of an L/C Advance shall relieve or otherwise impair the obligations of any
Credit Party to reimburse the Letter of Credit Issuer for the amount of any payment
made by the Letter of Credit Issuer under any Letter of Credit, together with
interest as provided herein.

     (vi) If any Alternate Lender fails to make available to Administrative Agent
for the account of the Letter of Credit Issuer any amount required to be

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paid by such Lender pursuant to the foregoing provisions of this Section 2.5(c)
by the time specified in Section 2.5(c)(ii), the Letter of Credit Issuer shall be
entitled to recover from such Alternate Lender (acting through Administrative
Agent), on demand, such amount with interest thereon for the period from the date
such payment is required to the date on which such payment is immediately available
to the Letter of Credit Issuer at a rate per annum equal to the Federal Funds Rate
from time to time in effect. A certificate of the Letter of Credit Issuer submitted
to any Alternate Lender (through Administrative Agent) with respect to any amounts
owing under this clause (vi) shall be conclusive absent manifest error.

     (d) Repayment of Participations.

     (i) At any time after the Letter of Credit Issuer has made a payment under any
Letter of Credit and has received from any Lender such Lender’s L/C Advance in
respect of such payment in accordance with Section 2.5(c), if Administrative Agent
receives for the account of the Letter of Credit Issuer any payment in respect of
the related Unreimbursed Amount or interest thereon (whether directly from Borrower
or otherwise, including proceeds of cash collateral applied thereto by
Administrative Agent), Administrative Agent will distribute to such Lender its Pro
Rata Share thereof (appropriately adjusted, in the case of interest payments, to
reflect the period of time during which such Lender’s L/C Advance was outstanding)
in the same funds as those received by Administrative Agent.

     (ii) If any payment received by Administrative Agent for the account of the
Letter of Credit Issuer pursuant to Section 2.5(c)(i) is required to be returned
under any of the circumstances described in Section 14.4 (including pursuant to any
settlement entered into by the Letter of Credit Issuer in its discretion), each
Alternate Lender shall, and each Conduit Lender may (and if a Conduit Lender does
not, the Alternate Lenders in its Lender Group shall), pay to Administrative Agent
for the account of the Letter of Credit Issuer its Pro Rata Share thereof on demand
of Administrative Agent, plus interest thereon from the date of such demand to the
date such amount is returned by such Lender, at a rate per annum equal to the
Federal Funds Rate from time to time in effect.

     (e) Obligations Absolute. The obligations of the applicable Borrower Party to
reimburse the Letter of Credit Issuer for each drawing under each Letter of Credit and to
repay each L/C Borrowing shall be absolute, unconditional and irrevocable, and shall be paid
strictly in accordance with the terms of this Credit Agreement under all circumstances,
including the following:

     (i) any lack of validity or enforceability of such Letter of Credit, this
Credit Agreement, or any other Loan Document;

     (ii) the existence of any claim, counterclaim, set-off, defense or other right
that any Borrower Party may have at any time against any beneficiary or any
transferee of such Letter of Credit (or any Person for whom any such beneficiary

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or any such transferee may be acting), the Letter of Credit Issuer or any other
Person, whether in connection with this Credit Agreement, the transactions
contemplated hereby or by such Letter of Credit or any agreement or instrument
relating thereto, or any unrelated transaction;

     (iii) any draft, demand, certificate or other document presented under such
Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any
respect or any statement therein being untrue or inaccurate in any respect; or any
loss or delay in the transmission or otherwise of any document required in order to
make a drawing under such Letter of Credit;

     (iv) any payment by the Letter of Credit Issuer under such Letter of Credit
against presentation of a draft or certificate that does not strictly comply with
the terms of such Letter of Credit; or any payment made by the Letter of Credit
Issuer under such Letter of Credit to any Person purporting to be a trustee in
bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator,
receiver or other representative of or successor to any beneficiary or any
transferee of such Letter of Credit, including any arising in connection with any
proceeding under any Debtor Relief Law; or

     (v) any other circumstance or happening whatsoever, whether or not similar to
any of the foregoing, including any other circumstance that might otherwise
constitute a defense available to, or a discharge of, any Borrower Party.

The applicable Borrower Party shall promptly examine a copy of each Letter of Credit and each
amendment thereto that is delivered to it and, in the event of any claim of noncompliance with such
Borrower Party’s instructions or other irregularity, such Borrower Party will immediately notify
the Letter of Credit Issuer. The applicable Borrower Party shall be conclusively deemed to have
waived any such claim against the Letter of Credit Issuer and its correspondents unless such notice
is given as aforesaid.

     (f) Role of Letter of Credit Issuer. Each Lender and each Borrower Party agree that,
in paying any drawing under a Letter of Credit, the Letter of Credit Issuer shall not have
any responsibility to obtain any document (other than any sight draft, certificates and
documents expressly required by the Letter of Credit) or to ascertain or inquire as to the
validity or accuracy of any such document or the authority of the Person executing or
delivering any such document. None of the Letter of Credit Issuer, any Agent-Related Person
nor any of the respective correspondents, participants or assignees of the Letter of Credit
Issuer shall be liable to any Lender for: (i) any action taken or omitted in connection
herewith at the request or with the approval of the Lenders or the Required Lenders, as
applicable; (ii) any action taken or omitted in the absence of gross negligence or willful
misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any
document or instrument related to any Letter of Credit or related Request for Letter of
Credit. Each Borrower Party hereby assumes all risks of the acts or omissions of any
beneficiary or transferee with respect to its use of any Letter of Credit; provided,
however, that this assumption is not intended to, and shall not, preclude any Borrower
Party’s pursuing such rights and remedies as it may have against the

43

 

beneficiary or transferee at law or under any other agreement. None of the Letter of
Credit Issuer, any Agent-Related Person, nor any of the respective correspondents,
participants or assignees of the Letter of Credit Issuer, shall be liable or responsible for
any of the matters described in clauses (i) through (v) of Section 2.5(e); provided,
however, that anything in such clauses to the contrary notwithstanding, a Borrower Party may
have a claim against the Letter of Credit Issuer, and the Letter of Credit Issuer may be
liable to such Borrower Party, to the extent, but only to the extent, of any direct, as
opposed to consequential or exemplary, damages suffered by such Borrower Party which such
Borrower Party proves were caused by the Letter of Credit Issuer’s willful misconduct or
gross negligence or the Letter of Credit Issuer’s willful failure to pay under any Letter of
Credit after the presentation to it by the beneficiary of a sight draft and certificate(s)
strictly complying with the terms and conditions of a Letter of Credit. In furtherance and
not in limitation of the foregoing, the Letter of Credit Issuer may accept documents that
appear on their face to be in order, without responsibility for further investigation,
regardless of any notice or information to the contrary, and the Letter of Credit Issuer
shall not be responsible for the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or
ineffective for any reason.

     (g) Cash Collateral. Upon the request of Administrative Agent if: (A) the Letter of
Credit Issuer has honored any full or partial drawing request under any Letter of Credit and
such drawing has resulted in an L/C Borrowing; or (B) an Event of Default has occurred and
is continuing; or (C) as of the Letter of Credit Expiration Date, any Letter of Credit for
any reason remains outstanding and partially or wholly undrawn, then the Borrower Parties
shall immediately Cash Collateralize the then-outstanding amount of the Letter of Credit
Liability (determined as of the date of the such Event of Default or Letter of Credit
Expiration Date, as the case may be).

     (i) In addition, if Administrative Agent notifies the Borrower Parties at any
time that the outstanding amount of the Letter of Credit Liability at such time
exceeds 100% of the Letter of Credit Sublimit then in effect, then the Credit
Parties shall Cash Collateralize the Letter of Credit Liability in an amount equal
to the amount by which the outstanding amount of the Letter of Credit Liability
exceeds the Letter of Credit Sublimit: (A) promptly upon receipt of such notice (but
in no event later than two (2) Business Days thereafter), with proceeds from a
Borrowing hereunder, up to the Available Loan Amount at such time; and (B) within
fifteen (15) Business Days of receipt of such notice to the extent that it is
necessary for the Credit Parties to issue Call Notices to fund such required payment
(after giving effect to the preceding clause (A)) (and the Credit Parties shall
issue such Call Notices during such time, and shall prepay such Loans or Cash
Collateralize the Letter of Credit Liability, or both, immediately after the Capital
Contributions relating to such Call Notices are received).

     (ii) Sections 2.1(d)(ii) and 3.6 set forth certain additional requirements to
deliver cash collateral hereunder. For purposes of this Section 2.5, and such other
Sections, “Cash Collateralize” means to pledge and deposit with or deliver

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to Administrative Agent, for the benefit of the Letter of Credit Issuer and the
Lenders, as collateral for the Letter of Credit Liability, cash or deposit account
balances in Dollars pursuant to documentation in form and substance satisfactory to
Administrative Agent and the Letter of Credit Issuer (which documents are hereby
consented to by the Lenders). Derivatives of such term have corresponding meanings.
Each Borrower Party hereby grants to Administrative Agent, for the benefit of the
Letter of Credit Issuer and the Lenders, a security interest in all such cash,
deposit accounts and all balances therein and all proceeds of the foregoing. Cash
Collateral shall be maintained in blocked, interest bearing deposit accounts at Bank
of America (provided that: (x) any interest accrued on any such deposit account
shall be payable to Borrower only upon the full and final payment of the
Obligations; and (y) upon the occurrence of an Event of Default, any such interest
accrued to the date thereof shall be applied as additional compensation to Lenders).

     (h) Conflict with Issuer Documents. In the event of any conflict between the terms
hereof and the terms of any Issuer Documents, the terms hereof shall control.

     (i) Applicability of ISP98. Unless otherwise expressly agreed by the Letter of Credit
Issuer and a Borrower Party when a Letter of Credit is issued, the rules of the ISP shall
apply to each Letter of Credit.

     2.6. Payment of Borrower Guaranty. In consideration of Lenders’ agreement to advance funds to
a Qualified Borrower, to cause Letters of Credit to be issued for the account of a Qualified
Borrower, and to accept Borrower Guaranties in support thereof, Borrower hereby authorizes,
empowers, and directs the Administrative Agent, for the benefit of itself and the other Secured
Parties, within the limits of the Available Loan Amount, to disburse directly to Lenders, with
notice to Borrower, in immediately available funds, an amount equal to the amount due and owing
under any Qualified Borrower Note or any Borrower Guaranty, together with all interest, reasonable
costs and expenses and fees due to Lenders pursuant thereto, as a Borrowing hereunder, in the event
Administrative Agent shall have not received payment of such Obligation when due. Administrative
Agent will promptly notify Borrower of any disbursement made to Lenders pursuant to the terms
hereof, provided that the failure to give such notice shall not affect the validity of the
disbursement. Any such disbursement made by Administrative Agent to Lenders shall be deemed to be
a Loan, and Borrower shall be deemed to have given to Administrative Agent, in accordance with the
terms and conditions of Section 2.3(a), a Loan Notice with respect thereto. Administrative Agent
may conclusively rely on Lenders as to the amount of any such Obligation due to Lenders, absent
manifest error.

     2.7. Use of Proceeds and Letters of Credit. The proceeds of the Loans and the Letters of
Credit shall be used solely for the purposes permitted under the Operating Agreement, the
Stockholders Agreement and the Constituent Documents of the Qualified Borrowers. None of the
Lenders, Agents or Administrative Agent shall have any liability, obligation, or responsibility
whatsoever with respect to any Borrower Party’s use of the proceeds of the Loans or the Letters of
Credit, and none of the Lenders, Agents or Administrative Agent shall be obligated to determine
whether or not any Borrower Party’s use of the proceeds of the Loans or the Letters of Credit are
for purposes permitted under the Operating Agreement, the Stockholders

45

 

Agreement or such Constituent Documents. Nothing, including, without limitation, any
Borrowing, or any issuance of any Letter of Credit, or acceptance of any other document or
instrument, shall be construed as a representation or warranty, express or implied, to any party by
any Agent, Lender or the Administrative Agent as to whether any investment by Borrower or any
Qualified Borrower is permitted by the terms of the Operating Agreement, the Stockholders Agreement
or the Constituent Documents of any Qualified Borrower.

     2.8. Administrative Agent and Arranger Fees. Borrower shall pay to Administrative Agent and
Arranger fees in consideration of the arrangement of the Commitments and administration of this
Credit Agreement, which fees shall be payable in amounts and on the dates agreed to between
Borrower and Administrative Agent in the Fee Letter.

     2.9. Unused Facility Fee. In addition to the payments provided for in Section 3 hereof,
Borrower shall pay to Administrative Agent, for the account of each Lender Group, in accordance
with its Lender Group Percentage, an unused facility fee on the daily amount of the Liquidity
Commitment minus the daily amount of the Principal Obligation at a rate per annum provided in the
Fee Letter, payable in arrears on each Settlement Date. Borrower and Lenders acknowledge and agree
that unused fees payable hereunder are bona fide unused fees and are intended as reasonable
compensation to Lenders for committing to make funds available to Borrower as described herein and
for no other purposes.

     2.10. Letter of Credit Fees. The Borrower Parties shall pay letter of credit fees (the
“Letter of Credit Fees”) to the Letter of Credit Issuer and Administrative Agent in the amounts and
on the dates as set forth in the Fee Letter.

     2.11. Computation of Interest and Fees. All computations of interest for Loans calculated by
reference to the Base Rate, when the Base Rate is determined by Bank of America’s “prime rate”
shall be made on the basis of a year of 365 or 366 days, as the case may be, and actual days
elapsed. All other computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more fees or interest, as applicable, being paid than if
computed on the basis of a 365-day year). Interest shall accrue on each Loan from and including
the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the
day on which the Loan or such portion is paid, provided that any Loan that is repaid on the same
day on which it is made shall, subject to Section 3.4, bear interest for one day.

     2.12. Increase in the Facility Amount.

     (a) Additional Increase. Administrative Agent shall, at the request of Borrower (not
more than three (3) times), increase the Facility Amount to the amount requested by Borrower
by increasing the Commitment of the Alternate Lenders (each, an “Increasing Lender”),
subject to the following conditions:

     (i) Borrower shall have delivered to Administrative Agent the Facility Increase
Request at least three (3) Business Days prior to the date of increase;

46

 

     (ii) After giving effect to the increase in the Commitment of each Increasing
Lender, the aggregate amount of Alternate Lenders’ Commitments will not exceed the
Maximum Commitment;

     (iii) Each increase in the aggregate amount of Alternate Lenders’ Commitments
shall be in a minimum amount of $50,000,000;

     (iv) No Event of Default or Potential Default has occurred and is continuing or
would result from such increase in the Alternate Lenders’ Commitments; and

     (v) Borrower shall have paid the applicable fees in accordance with the
applicable Fee Letter on or prior to the date of increase.

     (b) Consent of Alternate Lenders. Subject to the satisfaction of the conditions for
such an increase in this Section 2.12, each Alternate Lender agrees to increase its
Commitments pro rata in the event of an increase of the Facility Amount pursuant to this
Section 2.12.

     (c) Amendments. If Administrative Agent deems it advisable in its sole discretion,
Borrowers and each Lender agree to execute an amendment to this Credit Agreement, in form
and substance reasonably acceptable to Administrative Agent and Borrower, to document an
increase in the Facility Amount pursuant to this Section 2.12.

3. PAYMENT OF OBLIGATIONS

     3.1. Notes. The Loans to be made by Lenders to Borrower hereunder shall be evidenced by
promissory notes of Borrower. Each Note shall: (a) be in the amount of the applicable aggregate
Commitments of the applicable Lender Group; (b) be payable to the order of the Managing Agent for
such Lender Group; (c) bear interest in accordance with the provisions hereof; (d) be in the form
of Exhibit B-1 attached hereto (with blanks appropriately completed in conformity herewith); and
(e) be made by the Borrower. The Loans to be made by Lenders to Qualified Borrowers hereunder
shall be evidenced by a Qualified Borrower Promissory Note of each such Qualified Borrower. Each
Qualified Borrower Promissory Note shall: (a) be in the amount of the applicable aggregate Loans of
the applicable Lender Group to be advanced to such Qualified Borrower; (b) be payable to the order
of the Managing Agent for such Lender Group; (c) bear interest in accordance with the provisions
hereof; (d) be in the form of Exhibit B-2 attached hereto (with blanks appropriately completed in
conformity herewith); and (e) be duly executed by such Qualified Borrower. Each Borrower Party
agrees, from time to time, upon the request of Administrative Agent or any applicable Managing
Agent, to reissue new Notes, in accordance with the terms and in the form heretofore provided, to
any Lender and any Assignee of such Lender in accordance with Section 14.12(b) hereof, in renewal
of and substitution for the Note previously issued by such Borrower Party to the Managing Agent for
the affected Lender Group, and such previously issued Notes shall be returned to the applicable
Borrower Party marked “cancelled”. Each Managing Agent shall, and is hereby authorized to, make a
notation on the schedule attached to the Note of the date and the amount of each Loan and the date
and amount of each payment of principal thereon, and prior to any transfer of the

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Note, such Managing Agent shall endorse the outstanding principal amount of the Note on the
schedule attached thereto; provided, however, that failure to make such notation shall not limit or
otherwise affect the obligations of any Borrower Party hereunder or under such Note to pay when due
the aggregate unpaid principal amount of Obligations owing to the applicable Lender Group by such
Borrower Party under this Credit Agreement, and to pay interest on the aggregate unpaid principal
amount of Obligations (as so adjusted) and to pay any other amount owing hereunder or thereunder,
in each case as provided herein.

     3.2. Payment of Obligations. The principal amount of the Obligations outstanding on the
Maturity Date, together with all accrued but unpaid interest thereon, shall be due and payable on
the Maturity Date.

     3.3. Payment of Interest.

     (a) Interest. Interest on each Borrowing and any portion thereof shall commence to
accrue in accordance with the terms of this Credit Agreement and the other Loan Documents as
of the date of the disbursal or wire transfer of such Borrowing by Administrative Agent,
consistent with the provisions of Section 2.4 and 2.11, notwithstanding whether any Borrower
Party received the benefit of such Borrowing as of such date and even if such Borrowing is
held in escrow pursuant to the terms of any escrow arrangement or agreement. When a
Borrowing is disbursed by wire transfer pursuant to instructions received from a Borrower
Party, then such Borrowing shall be considered made at the time of the transmission of the
wire, in accordance with the Loan Notice, rather than the time of receipt thereof by the
receiving bank. With regard to the repayment of the Loans, interest shall continue to
accrue on any amount repaid until such time as the repayment has been received in federal or
other immediately available funds by Administrative Agent.

     (b) Interest Payment Dates. Accrued and unpaid interest (i) on the Obligations shall
be due and payable in arrears in Dollars on each Settlement Date and on the Maturity Date,
(ii) on each other date of any reduction of the Principal Obligation hereunder, and (iii)
with respect to any Obligation on which such Borrower Party is in default shall be due and
payable at any time and from time to time following such default upon demand by
Administrative Agent. Interest hereunder shall be due and payable in accordance with the
terms hereof before and after judgment, and before and after the commencement of any
proceeding under any Debtor Relief Law.

     (c) Direct Disbursement. If, at any time, Administrative Agent or Letter of Credit
Issuer shall not have received on the date due, any payment of interest upon the Loans or
any fee described herein, Administrative Agent may direct the disbursement of funds from the
Collateral Account to Lenders or Letter of Credit Issuer, in accordance with the terms
hereof, to the extent available therein for payment of any such amount. If, at any such
time, the amount available in the Collateral Account is not sufficient for the full payment
of such amounts due, Administrative Agent may, without prior notice to or the consent of any
Borrower Party, within the limits of the Available Loan Amount, disburse to Lenders, in
accordance with the terms hereof, in immediately available funds an amount equal to the
interest or fee due to Lenders, which disbursement shall be

48

 

deemed to be a Loan pursuant to Section 2.3 hereof, and Borrower shall be deemed to
have given to Lenders in accordance with the terms and conditions of Section 2.3 a Loan
Notice with respect thereto.

     3.4. Payments Generally. (a) All payments of principal of, and interest on, the Obligations
under this Credit Agreement by any Borrower Party to or for the account of Lenders, or any of them,
shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff by
such Borrower Party. Except as otherwise expressly provided herein, all payments by the Borrower
Parties hereunder shall be made to Administrative Agent, for the account of the respective Lenders
to which such payment is owed, to the Administrative Agent’s Account in Dollars and in immediately
available funds not later than 2:00 p.m. on the date specified herein. Funds received after 2:00
p.m. shall be treated for all purposes as having been received by Administrative Agent on the first
Business Day next following receipt of such funds and any applicable interest or fees shall
continue to accrue. Each Lender Group shall be entitled to receive its Lender Group Percentage (or
other applicable share as provided herein) of each payment received by Administrative Agent
hereunder for the account of Lenders on the Obligations. Each payment received by Administrative
Agent hereunder for the account of a Lender Group shall be promptly distributed by Administrative
Agent in accordance with the instructions provided by the Managing Agent for such Lender Group. If
any payment to be made by any Borrower Party shall come due on a day other than a Business Day,
payment shall be made on the next following Business Day, and such extension of time shall be
reflected in computing interest or fees, as the case may be.

     (b) Borrower Deposits. The Borrower Parties shall deposit or cause to be deposited
into the Administrative Agent’s Account:

     (i) On each Settlement Date, accrued and unpaid Yield for the applicable
Interest Period;

     (ii) On the specified Business Day with respect to a reduction of the Principal
Obligation under Section 3.5 or Section 3.6, the amount of the reduction, accrued
and unpaid Yield thereon to such Business Day and any other Obligations (other than
Yield) with respect to such amount;

     (iii) On each applicable Business Day determined in accordance with Section
2.1(d), an amount equal to the mandatory principal payment specified therein,
accrued and unpaid Yield thereon to such Business Day and any other Obligation
(other than Yield) with respect to such amount;

     (iv) On each Settlement Date, any Obligations then due and payable other than
Yield (without duplication); and

     (v) On the Maturity Date, all accrued and unpaid Obligations (including Cash
Collateralization of the Letter of Credit Liability that will remain outstanding
after the Maturity Date).

     (c) Order of Application. Upon the receipt by Administrative Agent of any payment with
respect to the Obligations, Administrative Agent shall distribute the

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amount of such payment or deposit to the Persons, for the purposes and in the order of
priority, set forth below:

     (i) to Administrative Agent, the Managing Agents, the Administrator, the
applicable Lenders and such other Persons as may be entitled to the distribution
required by this clause (i), in payment of all costs, expenses, other fees
(including Attorney Costs) and Obligations owed to such Persons other than Loans
and Yield and other than the Cash Collateralization of the Letter of Credit
Liability, pro rata based on entitlement;

     (ii) to the applicable Managing Agents (on behalf of their related Lenders),
pro rata based on the Lender Group Percentages of their respective Lender Groups in
the Loans, accrued and unpaid Yield on all Portions of Loans for the related
Interest Periods; and

     (iii) first, to the applicable Managing Agents (on behalf of their related
Lenders), pro rata based on the Lender Group Percentages of their respective Lender
Groups in the Loans, in reduction of the aggregate outstanding Loans, and second,
for deposit in the Administrative Agent’s Account an amount necessary to Cash
Collateralize the Letter of Credit Liability as required pursuant to Section 2.5.

     3.5. Voluntary Prepayments. Any Borrower Party may, upon notice to Administrative Agent, at
any time or from time to time voluntarily prepay Loans in whole or in part without premium or
penalty; provided that: (a) such notice must be received by Administrative Agent not later than
11:00 a.m. three (3) Business Days prior to any date of prepayment of Loans; and (b) any prepayment
of Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess
thereof or, if less, the entire principal amount thereof then outstanding. Each such notice shall
specify the date (which shall be a Business Day) and amount of such prepayment. Administrative
Agent will promptly notify each Managing Agent of its receipt of each such notice, and of the
amount of such Managing Agent’s Lender Group Percentage of such prepayment. If such notice is
given by a Borrower Party, such Borrower Party shall make such prepayment and the payment amount
specified in such notice shall be due and payable on the date specified therein. Any prepayment of
a Loan shall be accompanied by all accrued interest thereon, together with any additional amounts
required pursuant to Section 4 hereof. Each such prepayment shall be applied to the Obligations
held by each Lender in accordance with its respective Pro Rata Share.

     3.6. Reduction or Early Termination of Commitments. So long as no Loan Notice or Request for
Letter of Credit is outstanding, Borrower may terminate the Commitments, or reduce the Facility
Amount, by giving prior irrevocable written notice to Administrative Agent of such termination or
reduction ten (10) Business Days prior to the effective date of such termination or reduction
(which date shall be specified by Borrower in such notice): (a) (i) in the case of complete
termination of the Commitments, upon prepayment of all of the outstanding Obligation, including,
without limitation, all interest accrued thereon, in accordance with the terms of Section 3.5; or
(ii) in the case of a reduction of the Facility Amount, upon prepayment of the amount by which the
Principal Obligation exceeds the reduced Available Loan Amount

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resulting from such reduction, including, without limitation, payment of all interest accrued
thereon, in accordance with the terms of Section 3.5, provided, however, that, except in connection
with a termination of the Commitments, the Facility Amount may not be reduced such that, upon such
reduction, the Available Loan Amount is less than the aggregate face amount of outstanding Letters
of Credit; and (b) in the case of the complete termination of the Commitments, if any Letter of
Credit Liability exists, Borrower shall immediately Cash Collateralize the then-outstanding amount
of the Letter of Credit Liability, without presentment, demand, protest or any other notice of any
kind, all of which are hereby waived. Unless otherwise required by law, upon the full and final
payment of the Letter of Credit Liability, or the termination of all outstanding Letter of Credit
Liability due to the expiration of all outstanding Letters of Credit prior to draws thereon,
Administrative Agent shall return to Borrower or the applicable Qualified Borrower any amounts
remaining in such cash collateral account, provided, however, that, so long as no Event of Default
exists, to the extent individual Letters of Credit expire, Administrative Agent will return to
Borrower or the applicable Qualified Borrower the corresponding amount of the expired Letter of
Credit Liability. Notwithstanding the foregoing: (1) after any reduction of the Facility Amount
by Borrower, the next subsequent reduction shall not occur until at least one month thereafter; (2)
any reduction of the Facility Amount shall be in an amount equal to or greater than $5,000,000; and
(3) in no event shall a reduction by Borrower reduce the Facility Amount to $10,000,000 or less
(except for a termination of all the Commitments). Promptly after receipt of any notice of
reduction or termination, Administrative Agent shall notify each Lender of the same. Any reduction
of the Facility Amount shall reduce the Commitments of the Alternate Lenders on a pro rata basis.

     3.7. Lending Office. Each Lender may (a) designate its principal office or a branch,
subsidiary or Affiliate of such Lender as its Lending Office (and the office to whose accounts
payments are to be credited) for any Loan and (b) change its Lending Office from time to time by
notice to Administrative Agent and Borrower. In such event, the Managing Agent for such Lender
shall continue to hold the Note, if any, evidencing its loans for the benefit and account of such
branch, subsidiary or Affiliate. Each Lender shall be entitled to fund all or any portion of its
Commitment in any manner it deems appropriate, consistent with the provisions of Section 2.4.

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4. CHANGE IN CIRCUMSTANCES.

     4.1. Taxes.

     (a) Payments Free of Taxes. Any and all payments by or on account of any obligation of
any Borrower Party hereunder or under any other Loan Document shall be made free and clear
of and without reduction or withholding for any Indemnified Taxes or Other Taxes, provided
that if any Borrower Party shall be required by applicable law to deduct any Indemnified
Taxes (including any Other Taxes) from such payments, then: (i) the sum payable shall be
increased as necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section 4.1) each Tax Indemnified Party
receives an amount equal to the sum it would have received had no such deductions been made;
(ii) the applicable Borrower Party shall make such deductions; and (iii) such Borrower Party
shall timely pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law.

     (b) Payment of Other Taxes by Borrower. Without limiting the provisions of subsection
(a) above, each Borrower Party shall timely pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

     (c) Indemnification by Borrower Parties. Each Borrower Party shall indemnify each Tax
Indemnified Party, within ten (10) days after demand therefor, for the full amount of any
Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section 4.1) paid by such Tax
Indemnified Party and penalties, interest and reasonable expenses arising therefrom or with
respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority. A certificate as to the
amount of such payment or liability delivered to the applicable Borrower Party by a Tax
Indemnified Party (with a copy to Administrative Agent), on its own behalf or on behalf of a
Tax Indemnified Party, shall be conclusive absent manifest error.

     (d) Evidence of Payments. As soon as practicable after any payment of Indemnified
Taxes or Other Taxes by a Borrower Party to a Governmental Authority, such Borrower Party
shall deliver to Administrative Agent the original or a certified copy of a receipt issued
by such Governmental Authority evidencing such payment, a copy of the return reporting such
payment or other evidence of such payment reasonably satisfactory to Administrative Agent.

     (e) Gross Up. If any Borrower Party shall be required to deduct or pay any Taxes or
Other Taxes from or in respect of any sum payable under any Loan Document to Administrative
Agent or any Secured Party, such Borrower Party shall also pay to Administrative Agent or to
such Secured Party, as the case may be, at the time interest is paid, such additional amount
that Administrative Agent or such Secured Party specifies is necessary to preserve the
after-tax yield (after factoring in all taxes, including taxes imposed on or measured by net
income) that Administrative Agent or such Secured Party would have received if such Taxes or
Other Taxes had not been imposed.

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     (f) Selection of Lending Office. If a Borrower Party is or is likely to be required to
pay additional amounts to or for the account of any Lender pursuant to this Section 4.1,
then such Lender will agree to use reasonable efforts to change the jurisdiction of its
Lending Office so as to eliminate or reduce any such additional payment which may thereafter
accrue if such change, in the good faith judgment of such Lender, is not otherwise
materially disadvantageous to such Lender.

     (g) Treatment of Certain Refunds. If any Tax Indemnified Party determines, in its
reasonable discretion, that it has received a refund of any Taxes or Other Taxes as to which
it has been indemnified by the Borrower Parties or with respect to which any Borrower Party
has paid additional amounts pursuant to this Section 4.1, it shall pay to such Borrower
Party an amount equal to such refund (but only to the extent of indemnity payments made, or
additional amounts paid, by such Borrower Party under this Section 4.1 with respect to the
Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of such
Tax Indemnified Party, as the case may be, and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund); provided that each
Borrower Party, upon the request of such Tax Indemnified Party, agrees to repay the amount
paid over to such Borrower Party (plus any penalties, interest or other charges imposed by
the relevant Governmental Authority) to such Tax Indemnified Party in the event such Tax
Indemnified Party is required to repay such refund to such Governmental Authority. This
subsection shall not be construed to require any Tax Indemnified Party to make available its
tax returns (or any other information relating to its taxes that it deems confidential) to
the Borrower Parties or any other Person.

     4.2. Illegality. If any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for such Lender or its Lending Office to
make, maintain, finance or fund Loans or other Obligations, or to determine or charge interest
rates based upon the LIBOR Rate, or any Governmental Authority has imposed material restrictions on
the authority of such Lender to purchase or sell, or to take deposits of, Dollars or to determine
or charge interest rates based upon the LIBOR Rate, then, on notice thereof by such Lender to
Borrower Parties through Administrative Agent, any obligation of such Lender to make or continue
Loans or to convert Portions of Loans accruing Yield calculated by reference to the LIBOR Rate to
Portions of Loans calculated by return to the Base Rate shall be suspended until such Lender
notifies Administrative Agent and Borrower Parties that the circumstances giving rise to such
determination no longer exist. Upon the prepayment of any such Loans, each Borrower Party shall
also pay accrued interest on the amount so prepaid. Each Lender agrees to designate a different
Lending Office if such designation will avoid the need for such notice and will not, in the good
faith judgment of such Lender, otherwise be materially disadvantageous to such Lender.

     4.3. Inability to Determine Rates. If the LIBOR Rate is at any time applicable and if
Administrative Agent is unable to obtain on a timely basis the information necessary to determine
the LIBOR Rate for any proposed Interest Period, then: (a) Administrative Agent shall forthwith
notify the Lenders and each Borrower Party that the LIBOR Rate cannot be determined for such
Interest Period; and (b) while such circumstances exist, none of the Managing Agents shall allocate
any Portion of Loans with respect to Loans made during such

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period, or reallocate any Portion of Loans allocated to any then-existing Interest Period
ending during such period, to a Interest Period with respect to which Yield is calculated by
reference to the LIBOR Rate. If, with respect to any outstanding Interest Period, a Lender
notifies the Administrative Agent that it is unable to obtain matching deposits based upon the
London interbank market to fund its purchase or maintenance of such Portion of Loans or that the
LIBOR Rate applicable to such Portion of Loans will not adequately reflect the cost to the Person
of funding or maintaining such Portion of Loans for such Interest Period, then: (i) Administrative
Agent shall forthwith so notify Borrower and the Lenders; and (ii) upon such notice and thereafter
while such circumstances exist, the applicable Managing Agent shall not allocate any other Portion
of Loans with respect to Loans made by such Lender during such period, or reallocate any Portion of
Loans allocated to any Interest Period ending during such period, to an Interest Period with
respect to which Yield is calculated by reference to the LIBOR Rate.

     4.4. Increased Cost and Capital Adequacy.

     (a) Change in Law: Increased Cost. If any Secured Party determines that as a result of
the introduction of or any change in or in the interpretation of any Law, or such Secured
Party’s compliance therewith, there shall be any increase in the cost to such Secured Party
of agreeing to make or making, funding or maintaining Loans or (as the case may be) issuing
or participating in Letters of Credit (collectively, the “Covered Matters”), or its
obligation to advance funds under a Program Support Agreement or otherwise in respect of
Covered Matters, or a reduction in the amount received or receivable by such Secured Party
in connection with any of the foregoing (excluding for purposes of this clause (a) any such
increased costs or reduction in amount resulting from: (i) Taxes or Other Taxes (as to which
Section 4.1 shall govern); (ii) changes in the basis of taxation of overall net income or
overall gross income by the United States or any foreign jurisdiction or any political
subdivision of either thereof under the Laws of which such Secured Party is organized or has
its Lending Office; and (iii) reserve requirements utilized in the determination of the
LIBOR Rate), then from time to time upon demand of such Secured Party (with a copy of such
demand to the Administrative Agent), the Borrower Parties shall pay to such Secured Party
such additional amounts as will compensate such Secured Party for such increased cost or
reduction: (A) promptly on demand, to the extent that funds are available in the Collateral
Account or any other account maintained by Borrower; and (B) otherwise, to the extent that
it is necessary for Call Notices to be issued to fund such required payment, within fifteen
(15) Business Days after demand (but in any event, the Credit Parties shall issue such Call
Notices and shall make such payment immediately after the related Capital Contributions are
received).

     (b) Change in Law: Capital Adequacy. If any Secured Party determines that the
introduction of any Law regarding capital adequacy or any change therein or in the
interpretation thereof, or compliance by such Secured Party (or its Lending Office)
therewith, has the effect of reducing the rate of return on the capital of such Secured
Party or any corporation controlling such Secured Party as a consequence of Covered Matters
or its obligation to advance funds under a Program Support Agreement or otherwise in respect
of Covered Matters (taking into consideration its policies with respect to capital adequacy
and such Secured Party’s desired return on capital), then from

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time to time upon demand of such Secured Party (with a copy of such demand to
Administrative Agent), the applicable Borrower Parties shall pay to such Secured Party such
additional amounts as will compensate such Secured Party for such reduction; provided,
however, that such amounts shall not be duplicative of any amounts paid by such Borrower
Party in the preceding clause (a): (A) promptly on demand, to the extent that funds are
available in the Collateral Account or any other account maintained by such Borrower Party;
and (B) otherwise, to the extent that it is necessary for Call Notices to be issued to fund
such required payment, within fifteen (15) Business Days after demand (but in any event, the
Credit Parties shall issue such Call Notices and shall make such payment after the related
Capital Contributions are received).

     4.5. Funding Losses. Upon demand of any Lender (with a copy to Administrative Agent) from
time to time, the Borrower Parties shall promptly pay Administrative Agent for the account of such
Lender, such amount or amounts as shall compensate such Lender for and hold such Lender harmless
from any loss, cost or expense incurred by such Lender (as determined by the applicable Managing
Agent) as a result of (i) any reduction of any Portion of Loans other than on a date for which
timely notice thereof was provided in accordance with Section 3.5 or (ii) any failure by a Borrower
Party (for a reason other than the failure of such Lender to make a Loan) to pay, prepay or borrow
any Loan on the date or in the amount notified by such Borrower Party, or (iii) any failure by any
Borrower Party to make payment on any drawing under any Letter of Credit (or interest due thereon)
on its scheduled due date, and, in the case of an event described in clause (i) or (ii) to include:
(a) an amount equal to any loss or expense suffered by the applicable Lender during the period from
the date of receipt of such repayment to the applicable Settlement Date (or if in respect of a
reduction on a Settlement Date but without the requisite notice required by Section 3.5, to the
maturity date of such Commercial Paper (or other financing source)); and (b) net of the income, if
any, actually received by the recipient of such reduction from investing the proceeds of such
reduction of such Portion of Loans.

     4.6. Matters Applicable to all Requests for Compensation.

     (a) Determination of Amount. A certificate of Administrative Agent or any Secured
Party provided to Borrower claiming compensation under this Section 4 and setting forth the
additional amount or amounts to be paid to it hereunder shall be conclusive in the absence
of manifest error. In determining such amount, Administrative Agent or such Secured Party
may use any reasonable averaging and attribution methods.

     (b) No Duplication. Any amount payable by the Borrower on account of Section 4.1, 4.4,
or 4.5 shall not be duplicative of: (i) any amount paid under any other such sections, or
(ii) any amounts included in the calculation of the LIBOR Rate. Notwithstanding anything to
the contrary set forth in this Section 4, Borrower Parties shall be required to compensate
the Lenders for amounts payable pursuant to Sections 4.1, 4.4 and 4.5 only to the extent
Lenders are holding comparable borrowers liable for such amounts.

     (c) Replacement of Lenders. If any Lender requests compensation under Section 4.4, or
if any Borrower Party is required to pay any additional amount to any

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Lender or any Governmental Authority for the account of any Lender pursuant to Section
4.1, Borrower may replace such Lender in accordance with Section 14.14.

     (d) Refund. Any amount determined to be paid by the Borrower in error pursuant to this
Section 4 shall be, if no Event of Default has occurred and is continuing, promptly refunded
to the Borrower, or applied to amounts owing hereunder, as the Borrower may elect.

     (e) Survival. All of the Borrower Parties’ obligations under this Section 4 shall
survive the termination of the Commitments and payment in full of all other Obligations
hereunder.

     4.7. Prohibited Event. In the event a Lender notifies the Administrative Agent that,
subsequent to the Closing Date, such Lender or any of its Affiliates: (i) has become a fiduciary
with respect to any ERISA Investor in connection with its investment in the Borrower, the
Guarantor, the Pledgor or this transaction; or (ii) has acquired any discretionary authority or
control with respect to any ERISA Investor’s investment in any Credit Party, or renders any
investment advice (within the meaning of 29 C.F.R. §2510.3-21(c)) with respect to such investment,
the parties hereby agree that the event described in clause (i) or (ii) above (the “Prohibited
Event”) shall be deemed to have caused a prohibited transaction under Section 406(a) of ERISA or
Section 4975(c)(1)(A), (B), (C) or (D) of the Code with respect to the transactions described in
this Credit Agreement, and the parties to this Credit Agreement shall cooperate with each other to
correct such prohibited transaction in accordance with Section 4975(f)(5) of the Code.
NOTWITHSTANDING ANYTHING IN THIS CREDIT AGREEMENT TO THE CONTRARY, any such correction shall
prevent the Lender from receiving any direct or indirect fees, loan repayments, or any other
benefits from such ERISA Investor. If the Administrative Agent determines at any time in its
reasonable discretion that any of the corrections described herein are insufficient to correct the
prohibited transaction in accordance with Section 4975(f)(5) of the Internal Revenue Code, then the
parties shall also cooperate to replace such affected Lender.

5. SECURITY

     5.1. Liens and Security Interest.

     (a) Capital Commitments and Capital Calls. To secure performance by the Borrower
Parties of the payment of each Note and the Obligations: (i) each of Borrower and Managing
Member shall grant to Administrative Agent, for the benefit of each of the Secured Parties,
an exclusive, perfected, first priority security interest and Lien in and to the Collateral
Account pursuant to the Account Assignment; (ii) Borrower and Managing Member, to the extent
of their respective interests therein, shall grant to Administrative Agent, for the benefit
of Secured Parties, an exclusive, perfected, first priority security interest and Lien in
and to the Capital Calls, Capital Commitments, Capital Contributions and their rights under
the Operating Agreement, including, without limitation, any rights to make Capital Calls,
receive payment of Capital Contributions and enforce the payment thereof pursuant to the
Borrower and Managing Member Security Agreement and (iii) pursuant to the Capital
Contributions Pledge Agreement, the Pledgor shall grant to

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Administrative Agent, for the benefit of each Secured Party, an exclusive, perfected,
first priority security interest and Lien in all of the collateral described therein,
including the Capital Calls, Capital Commitments, Capital Contributions and, without
limitation, any rights to make Capital Calls, receive payment of Capital Contributions and
enforce the payment thereof with respect to the Stockholders pursuant to the Stockholders
Agreement (the collateral in clauses (i) through (iii) of this Section 5.1(a) being,
collectively, the “Collateral”); and (v) Borrower, Managing Member and Pledgor shall deliver
to Administrative Agent, or shall otherwise consent to the filing of, financing statements
and other documents satisfactory to Administrative Agent. Administrative Agent acknowledges
that the collateral for the Obligations does not include a security interest in any Equity
Interest.

     (b) Investor Letters. Each Investor shall execute, in favor of Administrative Agent
for the benefit of Secured Parties, an agreement in substantially the form attached hereto
as Exhibit I (an “Investor Letter”).

     5.2. Collateral Account; Capital Calls.

     (a) Collateral Account. In order to secure further the payment and performance of the
Obligations and to effect and facilitate Secured Parties’ right of offset: (i) the Credit
Parties hereby irrevocably appoints Administrative Agent as subscription agent and the sole
party entitled in the name of the applicable Credit Party upon the occurrence and during the
continuance of an Event of Default, to make any Capital Calls upon the Investors pursuant to
the terms of the Operating Agreement and/or the Stockholders Agreement, as applicable, and
shall require that all Investors wire-transfer to Bank of America, N.A., ABA #026-009-593,
for further credit to Account No. 1233060441, reference “Acadia Strategic Opportunity Fund
III LLC Collateral Account” (the “Collateral Account”), all monies or sums paid or to be
paid by any Investor to the capital of any Credit Party as Capital Contributions as and when
Capital Contributions are called pursuant to the Call Notices. In addition, each Credit
Party shall, upon receipt, deposit in the applicable Collateral Account described above, any
payments and monies that such Credit Party receives directly from its Investors as Capital
Contributions.

     (b) No Duty. Notwithstanding anything to the contrary herein contained, it is
expressly understood and agreed that neither Administrative Agent, Letter of Credit Issuer,
nor any other Secured Party undertakes any duties, responsibilities, or liabilities with
respect to Capital Calls. None of them shall be required to refer to the Constituent
Documents of any Credit Party or take any other action with respect to any other matter
which might arise in connection with such Constituent Documents, the Operating Agreement,
the Stockholders Agreement or any Capital Call. None of them shall have any duty to
determine or inquire into any happening or occurrence or any performance or failure of
performance of any Credit Party or of any Investor. None of them has any duty to inquire
into the use, purpose, or reasons for the making of any Capital Call or with respect to the
investment or the use of the proceeds thereof.

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     (c) Capital Calls. In order that Secured Parties may monitor the Collateral and the
Capital Commitments, no Credit Party shall issue any Call Notice or otherwise request,
notify, or demand that any Investor make any Capital Contribution, without delivering to
Administrative Agent (which delivery may be via facsimile) simultaneously with delivery of
the Call Notices to any Investors (“Call Notice Date”), copies of the Call Notice for each
Investor from whom a Capital Contribution is being sought. Concurrently with the delivery
of any Call Notice, the Borrower shall deliver to Administrative Agent a Borrowing Base
Certificate showing no Implicit Borrowing Base Deficit would exist at such time after
application of the subject Capital Contributions in accordance with the terms of the Call
Notice.

     (d) Use of Account; Capital Calls by Administrative Agent. Borrower may request that
Administrative Agent withdraw funds from the Collateral Account at any time or from time to
time and disburse such funds as Borrower may direct, so long as at the time of such
withdrawal or disbursement and after giving effect thereto: (i) there does not exist an
Event of Default or Potential Default; and (ii) the Principal Obligation does not exceed the
Available Loan Amount (unless, in the latter case), Borrower has directed that such
disbursement be paid to Administrative Agent to repay such excess) and any request by
Borrower for withdrawal from the Collateral Account shall be deemed a representation and
warranty that the conditions set forth in the foregoing clauses (i), (ii) and (iii) have
been satisfied. The Credit Parties hereby irrevocably authorize and direct the Secured
Parties, acting through Administrative Agent, to withdraw from time to time funds from the
Collateral Account for application to amounts not paid when due (after the passage of any
applicable grace period) to the Secured Parties or any of them hereunder, under any
Application and Agreement for Letter of Credit, under any Letter of Credit or under the
Notes to the extent provided herein. Administrative Agent, on behalf of the Secured
Parties, is hereby authorized, in the name of the Secured Parties or the name of any Credit
Party, at any time or from time to time upon the occurrence and while an Event of Default
exists, to notify any or all parties obligated to any Credit Party with respect to the
Capital Commitments to make all payments due or to become due thereon directly to
Administrative Agent on behalf of the Secured Parties, at a different account number, or to
initiate one or more Capital Call Notices in order to pay the Obligations. With or without
such general notification, when an Event of Default exists, Administrative Agent, on behalf
of Secured Parties: (i) may make Capital Calls in the name of any Credit Party; (ii) may
take or bring in any Credit Party’s name or (or that of the Secured Parties) all steps,
actions, suits, or proceedings deemed by Administrative Agent necessary or desirable to
effect possession or collection of Capital Commitments; (iii) may complete any contract or
agreement of any Credit Party in any way related to any of the Capital Commitments; (iv) may
make allowances or adjustments related to the Capital Commitments; (v) may compromise any
claims related to the Capital Commitments; (vi) may issue credit in its own name or the name
of any Credit Party; or (vii) may exercise any right, privilege, power, or remedy provided
to any Credit Party under the Constituent Documents of any Credit Party, the Operating
Agreement, or the Stockholders Agreement relating to the right to call for Capital
Contributions and to receive Capital Contributions. Regardless of any provision hereof, in
the absence of gross negligence or willful misconduct by Administrative Agent or Secured
Parties, none of Administrative Agent or Secured Parties shall ever be liable for failure to
collect or for

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failure to exercise diligence in the collection, possession, or any transaction
concerning, all or part of the Capital Call Notices, Capital Commitments, or any Capital
Contributions, or sums due or paid thereon, nor shall they be under any obligation
whatsoever to anyone by virtue of the security interests and Liens relating to the Capital
Call Notices, Capital Commitments or any Capital Contributions. Administrative Agent shall
give Borrower prompt notice of any action taken pursuant to this Section 5.2(d), but failure
to give such notice shall not affect the validity of such action or give rise to any defense
in favor of any Credit Party with respect to such action.

     (e) Event of Default. During the existence and continuance of an Event of Default,
issuance by Administrative Agent on behalf of Secured Parties of a receipt to any Person
obligated to pay any Capital Contribution to any Credit Party shall be a full and complete
release, discharge, and acquittance to such Person to the extent of any amount so paid to
Administrative Agent for the benefit of Secured Parties, so long as such amount shall not be
invalidated, declared to be fraudulent or preferential, set aside or required to be repaid
to a trustee, receiver or any other Person under any bankruptcy act or code, state or
federal law, common law or equitable doctrine. Administrative Agent, on behalf of the
Secured Parties, is hereby authorized and empowered, during the existence of and continuance
of an Event of Default, on behalf of any Credit Party, to endorse the name of any Credit
Party upon any check, draft, instrument, receipt, instruction, or other document, agreement
or item, including, but not limited to, all items evidencing payment of a Capital
Contribution of any Person to any Credit Party coming into Administrative Agent’s or any
Lender’s possession, and to receive and apply the proceeds therefrom in accordance with the
terms hereof. Administrative Agent on behalf of Secured Parties is hereby granted an
irrevocable power of attorney, which is coupled with an interest, to execute all checks,
drafts, receipts, instruments, instructions, or other documents, agreements, or items on
behalf of any Credit Party, either before or after demand of payment on the Obligations but
only during the existence and continuance of an Event of Default, as shall be deemed by
Administrative Agent to be necessary or advisable, in the sole discretion, reasonably
exercised, of Administrative Agent, to preserve the security interests and Liens in the
Capital Commitments or to secure the repayment of the Obligations, and neither
Administrative Agent nor Secured Parties shall incur any liability, in the absence of gross
negligence or willful misconduct, in connection with or arising from its exercise of such
power of attorney. The application by Secured Parties of such funds shall, unless
Administrative Agent shall agree otherwise in writing, be the same as set forth in Section
3.4.

     (f) No Representations. Neither Administrative Agent nor Secured Parties shall be
deemed to make at any time any representation or warranty as to the validity of any Call
Notice nor shall Administrative Agent or the Secured Parties be accountable for any Credit
Party’s use of the proceeds of any Capital Call Notice.

     5.3. Agreement to Deliver Additional Collateral Documents. Each Credit Party shall deliver
such security agreements, financing statements, assignments, and other collateral documents (all of
which shall be deemed part of the “Collateral Documents”), in form and substance reasonably
satisfactory to Administrative Agent, as Administrative Agent acting on behalf of the Secured
Parties may reasonably request from time to time for the purpose of

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granting to, or maintaining or perfecting in favor of the Secured Parties, first and exclusive
security interests in any of the Capital Call Notices and Capital Commitments, together with other
assurances of the enforceability and priority of the Secured Parties’ Liens and assurances of due
recording and documentation of the Collateral Documents or copies thereof, as Administrative Agent
may reasonably require to avoid material impairment of the liens and security interests granted or
purported to be granted pursuant to this Section 5.

     5.4. Subordination of All Credit Party Claims. As used herein, the term “Credit Party Claims”
means all debts and liabilities of any Investor to any Credit Party, whether such debts and
liabilities now exist or are hereafter incurred or arise, or whether the obligations of such Person
thereon be direct, contingent, primary, secondary, several, joint and several, or otherwise, and
irrespective of whether such debts or liabilities be evidenced by note, contract, open account, or
otherwise, and irrespective of the Person or Persons in whose favor such debts or liabilities may,
at their inception, have been, or may hereafter be created, or the manner in which they have been
or may hereafter be acquired by any Credit Party (including, without limitation, by setoff pursuant
to the terms of any applicable agreement). Credit Party Claims shall include without limitation
all rights and claims of any Credit Party against an Investor under the Constituent Documents of
such Person. At any time stays that the Principal Obligation exceeds the Available Loan Amount,
and until the mandatory prepayment pursuant to Section 2.1(d) hereof in connection therewith, if
any, shall be paid and satisfied in full, or, during the existence and continuation of an Event of
Default, no Credit Party shall receive or collect, directly or indirectly any amount upon the
Credit Party Claims, other than to obtain funds required to make any mandatory prepayment pursuant
to Section 2.1(d).

     Any Liens, security interests, judgment liens, charges, or other encumbrances upon an
Investor’s assets securing payment of Credit Party Claims, including, but not limited to, any liens
or security interests on an Investor’s Equity Interest, shall be and remain inferior and
subordinate in right of payment and of security to any liens, security interests, judgment liens,
charges, or other encumbrances upon an Investor’s assets securing such Investor’s obligations and
liabilities to the Secured Parties pursuant to any of the Collateral Documents executed by such
Investor, regardless of whether such encumbrances in favor of Borrower or a Qualified Borrower,
Managing Member, the Pledgor or the Secured Parties presently exist or are hereafter created or
attach. Without the prior written consent of Administrative Agent, no Credit Party shall: (a)
exercise or enforce any creditor’s, shareholder or partnership right it may have against an
Investor; (b) foreclose, repossess, sequester, or otherwise take steps or institute any action or
proceedings (judicial or otherwise, including without limitation, the commencement of, or joinder
in, any liquidation, bankruptcy, rearrangement, debtor’s relief, or insolvency proceeding) to
enforce any liens, mortgages, deeds of trust, security interest, collateral rights, judgments or
other encumbrances on assets of such Investor held by such Person; or (c) exercise any rights or
remedies against an Investor under the Constituent Documents of such Person; provided that any
action taken by Administrative Agent or the Secured Parties in Borrower’s name, or any action taken
by Borrower that is required under any Loan Document or to comply with any Loan Document, shall not
be a violation of this Section 5.4.

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6. [RESERVED]

7. ADDITIONAL ALTERNATE LENDER PROVISIONS

     7.1. Assignment to Alternate Lenders.

(a) Assignment Amounts. At any time on or prior to the Stated Maturity Date, if the
related Administrator on behalf of the applicable Conduit Lender so elects, by
written notice to Administrative Agent, Borrower and its related Managing Agent,
such Conduit Lender hereby assigns effective on the Assignment Date referred to
below all or such portions as may be elected by such Conduit Lender of its interest
in the Principal Obligation at such time to its Alternate Lenders pursuant to this
Section 7.1; provided, however, that unless such assignment is an assignment of all
such Conduit Lender’s interest in the Principal Obligation in whole on or after its
Conduit Investment Termination Date, no such assignment shall take place pursuant to
this Section 7.1 if an Event of Default described in Section 12.1(n) shall then
exist; and provided, further, that no such assignment shall take place pursuant to
this Section 7.1 at a time when such Conduit Lender is subject to any proceedings
under any Debtor Relief Laws. No further documentation or action on the part of
such Conduit Lender, the Borrower, or the applicable Alternate Lenders shall be
required to exercise the rights set forth in the immediately preceding sentence,
other than the giving of the notice by the related Administrator on behalf of such
Conduit Lender referred to in such sentence and the delivery by the related Managing
Agent of a copy of such notice to each Alternate Lender in the Lender Group (the
date of the receipt by Administrative Agent of any such notice being the “Assignment
Date”). Each Alternate Lender hereby agrees, unconditionally and irrevocably and
under all circumstances, without set-off, counterclaim or defense of any kind, to
pay the full amount of its Assignment Amount on such Assignment Date to such Conduit
Lender in immediately available funds in Dollars based on the assigning Conduit
Lender’s interest in the Principal Obligation, to an account designated by the
related Managing Agent. Upon payment of its Assignment Amount, each such Alternate
Lender shall acquire an interest in the Principal Obligation equal to its Alternate
Lender Pro Rata Share thereof. Upon any assignment in whole by a Conduit Lender to
its Alternate Lenders on or after its Conduit Investment Termination Date as
contemplated hereunder, such Conduit Lender shall cease to make any additional Loans
hereunder. At all times prior to its Conduit Investment Termination Date, nothing
herein shall prevent a Conduit Lender from making a subsequent Loan hereunder, in
its sole discretion, following any assignment pursuant to this Section 7.1 or from
making more than one assignment pursuant to this Section 7.1.

(b) Additional Assignment Amounts. The applicable Borrower Party may pay to
Administrative Agent in Dollars, for the account of the related Managing Agent for
the benefit of its Conduit Lender, in connection with any assignment by a Conduit
Lender to its Alternate Lenders pursuant to this Section 7.1, an aggregate amount
equal to all Yield to accrue through the end of the current

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Interest Period to the extent attributable to the portion of the Loans so assigned
to the Alternate Lenders (as determined immediately prior to giving effect to such
assignment), plus all Obligations then due, other than the Loans and other than any
Yield described above, attributable to such portion of the Loans so assigned. If
the applicable Borrower Party does not make payment of such amounts at or prior to
the time of assignment by a Conduit Lender to its Alternate Lenders, such amount
shall be paid by such Alternate Lenders to the Conduit Lender as additional
consideration for the interests assigned to the Alternate Lenders and the amount of
the “Loans” hereunder held by such Alternate Lenders shall be increased by an amount
equal to the additional amount so paid by such Alternate Lenders.

(c) Administration of Agreement after Assignment from Conduit Lender to Alternate
Lenders following the Conduit Investment Termination Date. After any assignment in
whole by a Conduit Lender to its Alternate Lenders pursuant to this Section 7.1 at
any time on or after its Conduit Investment Termination Date (and the payment of all
amounts owing to such Conduit Lender in connection therewith), all rights of the
related Administrator and the related Conduit Collateral Agent set forth herein
shall be given to the applicable Managing Agent on behalf of its Alternate Lenders
instead of such Administrator and Conduit Collateral Agent.

(d) Payments to Administrative Agent. After any assignment in whole by a Conduit
Lender to its Alternate Lenders pursuant to this Section 7.1 at any time on or after
its Conduit Investment Termination Date, all payments to be made hereunder by a
Borrower Party to Administrative Agent for the benefit of such Conduit Lender shall
be made to the account specified by the applicable Managing Agent in writing to the
Administrative Agent and the applicable Borrower Party.

(e) Recovery of Loans. In the event that the aggregate of the Assignment Amounts
paid by the Alternate Lenders with respect to any Lender Group pursuant to this
Section 7.1 on any Assignment Date occurring on or after the Conduit Investment
Termination Date for the related Conduit Lender is less than the Loans of such
Conduit Lender on such Assignment Date, then to the extent that payments or deposits
thereafter received and applied by Administrative Agent with respect to such Lender
Group under Section 3.4 in respect of Loans exceed the aggregate of the unrecovered
Assignment Amounts and Loans funded by such Alternate Lenders, such excess shall be
remitted by Administrative Agent to the related Managing Agent.

     7.2. Downgrade of Alternate Lender.

(a) Downgrades Generally. If at any time on or prior to the Stated Maturity Date,
the short-term debt rating of any Alternate Lender shall be “A-2” or “P-2” from S&P
or Moody’s, respectively, with negative credit implications, such Alternate Lender,
upon request of the related Managing Agent, shall, within thirty

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(30) days of such request, assign its rights and obligations hereunder to another
financial institution (which institution’s short term debt shall be rated at least
“A-2” or “P-2” from S&P or Moody’s, respectively, and which shall not be so rated
with negative credit implications and which is acceptable to such Conduit Lender and
such Managing Agent). If the short-term debt rating of such Alternate Lender shall
be “A-3” or “P-3”, or lower, from S&P or Moody’s, respectively (or such rating shall
have been withdrawn by S&P or Moody’s), such Alternate Lender, upon request of the
related Managing Agent, shall, within five (5) Business Days of such request, assign
its rights and obligations hereunder to another financial institution (which
institution’s short-term debt shall be rated at least “A-2” or “P-2”, from S&P or
Moody’s, respectively, and which shall not be so rated with negative credit
implications and which is acceptable to such Conduit Lender and such Managing
Agent). In either such case, if any such Alternate Lender shall not have assigned
its rights and obligations under this Credit Agreement within the applicable time
period described above (in either such case, the “Required Downgrade Assignment
Period”), the Administrator on behalf of such Conduit Lender shall have the right to
require such Alternate Lender to pay, in Dollars upon one (1) Business Day’s notice
at any time after the Required Downgrade Assignment Period (and each such Alternate
Lender hereby agrees in such event to pay within such time) to the applicable
Managing Agent an amount equal to such Alternate Lender’s unused Commitment (without
any deduction therefrom for such Alternate Lender’s share of the Letter of Credit
Liability) (a “Downgrade Draw”) for deposit by such Managing Agent into an account,
in the name of such Managing Agent (a “Downgrade Collateral Account”), which shall
be in satisfaction of such Alternate Lender’s obligations to make Loans and to pay
its Assignment Amount upon an assignment from such Conduit Lender in accordance with
Section 7.1; provided, however, that if, during the Required Downgrade Assignment
Period, such Alternate Lender delivers a written notice to such Managing Agent of
its intent to deliver a direct pay irrevocable letter of credit pursuant to this
proviso in lieu of the payment required to fund the Downgrade Draw, then such
Alternate Lender will not be required to fund such Downgrade Draw. If any Alternate
Lender gives the applicable Managing Agent such notice, then such Alternate Lender
shall, within one (1) Business Day after the Required Downgrade Assignment Period,
deliver to such Managing Agent a direct pay irrevocable letter of credit in favor of
such Managing Agent issued in Dollars, in an amount equal to the unused portion of
such Alternate Lender’s Commitment (without any deduction therefrom for such
Alternate Lender’s share of the Letter of Credit Liability), which letter of credit
shall be issued through a United States office of a bank or other financial
institution: (i) whose short-term debt ratings by S&P and Moody’s are at least
equal to the ratings assigned by such statistical rating organization to the
Commercial Paper; and (ii) that is acceptable to such Conduit Lender and such
Managing Agent. Such letter of credit shall provide that such Managing Agent may
draw thereon for payment of any Loan or Assignment Amount payable by such Alternate
Lender which is not paid hereunder when required, shall expire no earlier than the
Stated Maturity Date and shall otherwise be in form and substance acceptable to such
Managing

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Agent. If on any date the amount on deposit in the Downgrade Collateral Account or
the maximum stated amount under any letter of credit so provided is less than the
applicable Alternate Lender’s share of the unused Commitment, upon one (1) Business
Day’s notice, such Alternate Lender will pay the amount of such shortfall to the
applicable Managing Agent for deposit into the Downgrade Collateral Account or
provide a substitute or additional direct pay irrevocable letter of credit to cover
such shortfall.

(b) Application of Funds in Downgrade Collateral Account. If any Alternate Lender
in any Lender Group shall be required pursuant to subsection (a) to fund a Downgrade
Draw, then the related Managing Agent shall apply the monies in the Downgrade
Collateral Account applicable to such Alternate Lender’s share of Loans required to
be made by the related Alternate Lenders, to any Assignment Amount payable by such
Alternate Lender pursuant to Section 7.1 at the times, in the manner and subject to
the conditions precedent set forth in this Credit Agreement. The deposit of monies
in such Downgrade Collateral Account by any Alternate Lender shall not constitute a
Loan or the payment of any Assignment Amount (and such Alternate Lender shall not be
entitled to interest on such monies except as provided below in this Section
7.2(b)), unless and until (and then only to the extent that) such monies are used to
fund Loans or to pay any Assignment Amount pursuant to this Section 7.2(b). The
amount on deposit in such Downgrade Collateral Account shall be invested by the
related Managing Agent in investments selected by such Managing Agent in its sole
discretion and eligible in accordance with the applicable conduit program documents.
Such Managing Agent shall remit to such Alternate Lender, on the last Business Day
of each month, the interest income actually received thereon. Unless required to be
released as provided below in this subsection, payments or deposits received by such
Managing Agent in respect of such Alternate Lender’s portion of the Loans shall be
deposited in the Downgrade Collateral Account for such Alternate Lender. Amounts on
deposit in such Downgrade Collateral Account shall be released to such Alternate
Lender (or the stated amount of the letter of credit delivered by such Alternate
Lender pursuant to subsection (a) above may be reduced) within one (1) Business Day
after each Settlement Date following the Maturity Date to the extent that, after
giving effect to the distributions made and received by the Lenders on such
Settlement Date, the amount on deposit in such Downgrade Collateral Account would
exceed the Alternate Lender’s Alternate Lender Pro Rata Share (determined as of the
day prior to the Maturity Date) of the sum of all Portions of Loans then funded by
the related Conduit Lender, plus the related Interest Component, plus such Alternate
Lender’s Pro Rata Share of the Letter of Credit Liability. All amounts remaining in
such Downgrade Collateral Account shall be released to such Alternate Lender no
later than the Business Day immediately following the earliest of: (i) the
effective date of any replacement of such Alternate Lender or removal of such
Alternate Lender as a party to this Credit Agreement; (ii) the date on which such
Alternate Lender shall furnish the related Managing Agent with confirmation that
such Alternate Lender shall have short term debt ratings of at least “A-2” or “P-2”
from S&P and Moody’s, respectively,

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without negative credit implications; and
(iii) the Stated Maturity Date. Nothing in this Section 7.2 shall affect or
diminish in any way any such downgraded Alternate Lender’s Commitment to Borrower or
its related Conduit Lender or such downgraded Alternate Lender’s other obligations
and liabilities hereunder and under the other Loan Documents.

(c) Program Support Agreement Downgrade Provisions. Notwithstanding the other
provisions of this Section 7.2, an Alternate Lender shall not be required to make a
Downgrade Draw (or provide for the issuance of a letter of credit in lieu thereof)
pursuant to Section 7.2(a) at a time when such Alternate Lender has a downgrade
collateral account (or letter of credit in lieu thereof) established pursuant to the
Program Support Agreement to which it is a party in an amount at least equal to its
Commitment, and the related Managing Agent may apply monies in such downgrade
collateral account in the manner described in Section 7.2(b) as if such downgrade
collateral account were a Downgrade Collateral Account.

8. CONDITIONS PRECEDENT TO LENDING

     8.1. Obligation of Lenders. The obligation of each Lender and the Letter of Credit Issuer to
make the initial Loan and issue the first Letter of Credit hereunder is subject to Administrative
Agent’s receipt of the following:

     (a) Credit Agreement. This Credit Agreement, duly executed and delivered by Borrower,
Managing Member, Guarantor and Pledgor;

     (b) Notes. Notes drawn to the order of each Managing Agent, duly executed and
delivered by Borrower and Managing Member;

     (c) Security Agreements. (i) The Borrower and Managing Member Security Agreement, duly
executed and delivered by Borrower and Managing Member and (ii) any other security agreement
or related document reasonably requested by Administrative Agent.

     (d) Capital Contributions Pledge Agreement. (i) The Capital Contributions Pledge
Agreement, duly executed and delivered by Pledgor; and (ii) any other similar agreement or
related document reasonably requested by Administrative Agent.

     (e) Guaranty of Capital. The Guaranty of Capital, duly executed and delivered by
Guarantor.

     (f) Account Documents. The Account Assignment, duly executed and delivered by
Borrower;

     (g) Financing Statements.

     (i) searches of Uniform Commercial Code (“UCC”) filings in each jurisdiction
where a filing has been or would need to be made in order to perfect the
Administrative Agent’s security interest on behalf of the Secured Parties in the

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Collateral, copies of the financing statements on file in such jurisdictions and
evidence that no Liens exist, or, if necessary, copies of proper financing
statements, if any, filed on or before the date hereof necessary to terminate all
security interests and other rights of any Person in any Collateral previously
granted; and

     (ii) duly authorized UCC financing statements and any amendments thereto, for
each appropriate jurisdiction as is necessary, in the Administrative Agent’s sole
discretion, to perfect the Administrative Agent’s security interest on behalf of the
Secured Parties in the Collateral;

     (h) Responsible Officer Certificates. A certificate from a Responsible Officer of each
Credit Party, stating that: (i) all of the representations and warranties contained in
Section 9 hereof and the other Loan Documents made by such Credit Party are true and correct
in all material respects as of such date (except to the extent of changes in facts or
circumstances that have been disclosed to Lenders and do not constitute an Event of Default
or, to its knowledge, a Potential Default under this Credit Agreement or any other Loan
Document); and (ii) no event has occurred and is continuing, or would result from the
Borrowing or issuance of the Letters of Credit, as applicable, which constitutes an Event of
Default or, to its knowledge, a Potential Default;

     (i) Borrower’s Operating Agreement. A signed certificate of a Responsible Officer of
Borrower who shall certify that attached thereto is a true and complete copy of the
Operating Agreement of Borrower as in effect on the date hereof, together with certificates
of existence and good standing (or other similar instruments) of Borrower as in effect on
the date hereof;

     (j) Managing Member’s Formation Documents. A signed certificate of a Responsible
Officer of Managing Member who shall certify that attached thereto are true and complete
copies of the Constituent Documents of Managing Member, together with certificates of
existence and good standing (or other similar instruments) of Managing Member as in effect
on the date hereof;

     (k) Guarantor’s Formation Documents. A signed certificate of a Responsible Officer of
Guarantor who shall certify that attached thereto are true and complete copies of the
Constituent Documents of Guarantor together with certificates of existence and good standing
(or other similar instruments) of Guarantor as in effect on the date hereof;

     (l) Pledgor’s Formation Documents. A signed certificate of a Responsible Officer of
Pledgor who shall certify that attached thereto are true and complete copies of the
Constituent Documents of Pledgor together with certificates of existence and good standing
(or other similar instruments) of Pledgor as in effect on the date hereof;

     (m) Incumbency Certificate. From each Credit Party, a signed certificate of a
Responsible Officer, who shall certify the names of the Persons authorized, on the date

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hereof, to sign each of the Loan Documents and the other documents or certificates to be
delivered pursuant to the Loan Documents on behalf of such Credit Party, together with
the true signatures of each such Person. Administrative Agent may conclusively rely on such
certificate until it shall receive a further certificate canceling or amending the prior
certificate and submitting the signatures of the Persons named in such further certificate;

     (n) Opinions of Counsel. (i) A favorable opinion of Robert Masters, Senior Vice
President and General Counsel of each Credit Party, as counsel to each Credit Party; (ii) a
favorable opinion of Berliner, Corcoran & Rowe, L.L.P., Maryland counsel to the Pledgor; and
(iii) an opinion of Mayer Brown LLP, special counsel to the Administrative Agent; each
covering such matters relating to the transactions contemplated hereby as reasonably
requested by Administrative Agent, and substantially in a form acceptable to Administrative
Agent;

     (o) ERISA Certificate. A certificate from a Responsible Officer of the Credit Parties
confirming that the assets of the Credit Parties do not constitute plan assets by reason of
the fact that participation in the Credit Parties by “benefit plan investors” is not
“significant”, as such terms are defined in the Plan Asset Regulations;

     (p) Investor Documents. Administrative Agent shall have received from each Included
Investor and Designated Investor: (i) a duly executed Investor Letter; (ii) a copy of such
Investor’s duly executed signature page to the Operating Agreement or Stockholders
Agreement, as applicable; and (iii) to the extent requested by Administrative Agent, true
and complete copies of the organizational documents of each Investor, or other documentation
in lieu thereof that is acceptable to Administrative Agent in its sole discretion.
Administrative Agent may waive one or more of the foregoing requirements with respect to
Designated Investors so long as Borrowers have made good faith efforts to obtain the same
without success;

     (q) Fees; Costs and Expenses. Payment of all fees and other amounts due and payable on
or prior to the date hereof, including pursuant to the Fee Letter, and, to the extent
invoiced, reimbursement or payment of all reasonable expenses required to be reimbursed or
paid by Borrower hereunder, including the fees and disbursements invoiced through the date
hereof of Administrative Agent’s special counsel, Mayer Brown LLP;

     (r) Advisory Committee Required Vote. Written evidence in form reasonably satisfactory
to the Administrative Agent that the Advisory Committee (as defined in the Operating
Agreement) has approved the Loans and Letters of Credit contemplated by this Credit
Agreement and the other Loan Documents as contemplated in Section 4.1(b) of the Operating
Agreement; and

     (s) Additional Information. Such other information and documents as may reasonably be
required by Administrative Agent and its counsel, including any “Know Your Customer”
procedures as reasonably requested by the Lenders.

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     8.2. Qualified Borrower Loans and Letters of Credit. The obligation of Lenders to advance a
Loan to a Qualified Borrower or to cause the issuance of a Letter of Credit for a Qualified
Borrower is subject to the conditions that:

     (a) Qualified Borrower Promissory Note. Administrative Agent shall have received a
duly executed Qualified Borrower Promissory Note or Qualified Borrower Letter of Credit
Note, as applicable, complying with the terms and provisions hereof;

     (b) Authorizations of Qualified Borrower. Administrative Agent shall have received
from the Qualified Borrower appropriate evidence of the authorization of the Qualified
Borrower approving the execution, delivery and performance of the Qualified Borrower
Promissory Note or the Qualified Borrower Letter of Credit Note, duly adopted by Qualified
Borrower, as required by law or agreement, and accompanied by a certificate of an authorized
Person of such Qualified Borrower stating that such authorizations are true and correct,
have not been altered or repealed and are in full force and effect;

     (c) Incumbency Certificate. Administrative Agent shall have received from the
Qualified Borrower a signed certificate of the appropriate Responsible Officer of the
Qualified Borrower which shall certify the names of the Persons authorized to sign the
Qualified Borrower Promissory Note and the other documents or certificates to be delivered
pursuant to the terms hereof by such Qualified Borrower, together with the true signatures
of each such Person;

     (d) Borrower Guaranty. Administrative Agent shall have received from Borrower a duly
executed Borrower Guaranty complying with the terms and provisions hereof;

     (e) Opinion of Counsel to Qualified Borrower. Administrative Agent shall have received
a favorable opinion of counsel for the Qualified Borrower, in form and substance
satisfactory to Administrative Agent and addressed to Administrative Agent, that: (i) the
Qualified Borrower is duly organized and validly existing under the laws of the jurisdiction
of its formation; (ii) the subject Qualified Borrower Note has been duly authorized,
executed and delivered by the Qualified Borrower; (iii) the subject Qualified Borrower Note
is a valid and binding obligation and agreement of such Qualified Borrower, enforceable in
accordance with its terms, except to the extent that it may be limited by bankruptcy,
insolvency, moratorium and other laws affecting creditors’ rights generally, by general
equitable principles; and (iv) neither the execution nor delivery by Qualified Borrower of
the subject Qualified Borrower Note, and, if applicable, the Application and Agreement for
Letter of Credit, the performance by such Qualified Borrower of its obligations thereunder,
nor the compliance by Qualified Borrower with the terms and provisions thereof, will: (A)
contravene any provision of the general corporate law, or, if Qualified Borrower is a
partnership or another type of entity, the Managing Membership law or applicable law
governing such entity, of the jurisdiction of formation of such Qualified Borrower, or the
laws, statutes, rules or regulations of the State of New York or the United States of
America to which Qualified Borrower is subject, or conflict with, or result in any breach
of, any material agreement, mortgage,

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indenture, deed of trust or other instrument known to counsel to which Qualified
Borrower or its properties may be subject, or result in the creation of any mortgage, lien,
pledge or encumbrance in respect of any properties of Qualified Borrower; (B) contravene any
judgment, decree, license, order or permit applicable to Qualified Borrower; or (C) violate
any provision of the organizational documents of Qualified Borrower. Each Qualified
Borrower hereby directs its counsel to prepare and deliver such legal opinion to
Administrative Agent for the benefit of Lenders.

     8.3. All Loans and Letters of Credit. The obligation of Lenders to advance each Borrowing or
the Letter of Credit Issuer to issue Letters of Credit hereunder is subject to the conditions that:

     (a) Representations and Warranties. The representations and warranties set forth in
Section 9 hereof are true and correct in all material respects on and as of the date of the
advance of such Borrowing or issuance of such Letter of Credit, with the same force and
effect as if made on and as of such date (except to the extent of changes in facts or
circumstances that have been disclosed to Lenders and do not constitute an Event of Default
or a Potential Default under this Credit Agreement or any other Loan Document);

     (b) No Default. No event shall have occurred and be continuing, or would result from
the Borrowing or the issuance of the Letter of Credit, which constitutes an Event of Default
or a Potential Default;

     (c) Loan Notice. Administrative Agent shall have received a Loan Notice or Request for
Letter of Credit;

     (d) Application. In the case of a Letter of Credit, the Letter of Credit Issuer shall
have received an Application and Agreement for Letter of Credit executed by Borrower or the
applicable Qualified Borrower and shall have countersigned the same; and

     (e) Material Adverse Effect. No Material Adverse Effect has occurred and is
continuing.

9. REPRESENTATIONS AND WARRANTIES. To induce Lenders to make the Loans and cause the issuance of
Letters of Credit hereunder, each Credit Party represents and warrants to Lenders as to itself
that:

     9.1. Organization and Good Standing of Borrower. Borrower is a limited liability company duly
organized and validly existing under the laws of the State of Delaware, has the requisite limited
liability company power and authority to own its properties and assets and to carry on its business
as now conducted, and is qualified to do business in each jurisdiction where the nature of the
business conducted or the property owned or leased requires such qualification or where the failure
to be so qualified to do business would have a Material Adverse Effect.

     9.2. Organization and Good Standing of Managing Member. Managing Member is a limited
liability company duly organized and validly existing under the laws of the State of Delaware, has
the requisite limited liability company power and authority to own its properties

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and assets and to carry on its business as now conducted, and is qualified to do business in
each jurisdiction where the nature of the business conducted or the property owned or leased
requires such qualification or where the failure to be so qualified to do business would have a
Material Adverse Effect.

     9.3. Organization and Good Standing of Guarantor. Guarantor is a limited partnership duly
organized and validly existing under the laws of the State of Delaware, has the requisite limited
partnership power and authority to own its properties and assets and to carry on its business as
now conducted, and is qualified to do business in each jurisdiction where the nature of the
business conducted or the property owned or leased requires such qualification or where the failure
to be so qualified to do business would have a Material Adverse Effect.

     9.4. Organization and Good Standing of Pledgor. Pledgor is a corporation incorporated and
validly existing under the laws of the State of Maryland, has the requisite corporate power and
authority to own its properties and assets and to carry on its business as now conducted, and is
qualified to do business in each jurisdiction where the nature of the business conducted or the
property owned or leased requires such qualification or where the failure to be so qualified to do
business would have a Material Adverse Effect.

     9.5. Authorization and Power. It has the partnership, limited liability company or corporate
power, as applicable, and requisite authority to execute, deliver, and perform its respective
obligations under this Credit Agreement, the Notes, and the other Loan Documents to be executed by
it. It is duly authorized to, and has taken all partnership, limited liability company and
corporate action, as applicable, necessary to authorize it to execute, deliver, and perform its
respective obligations under this Credit Agreement, the Notes, and such other Loan Documents and is
and will continue to be duly authorized to perform its respective obligations under this Credit
Agreement, the Notes, and such other Loan Documents.

     9.6. No Conflicts or Consents. None of the execution and delivery of this Credit Agreement,
the Notes, or the other Loan Documents, the consummation of any of the transactions herein or
therein contemplated, or the compliance with the terms and provisions hereof or with the terms and
provisions thereof, will contravene or conflict, in any material respect, with any provision of
law, statute, or regulation to which it is subject or any judgment, license, order, or permit
applicable to it or any indenture, mortgage, deed of trust, or other agreement or instrument to
which it is a party or by which it may be bound, or to which it may be subject. No consent,
approval, authorization, or order of any court or Governmental Authority or third party is required
in connection with the execution and delivery by it of the Loan Documents to which it is a party or
to consummate the transactions contemplated hereby or thereby except for those that have been
obtained.

     9.7. Enforceable Obligations. This Credit Agreement, the Notes and the other Loan Documents
to which it is a party are the legal and binding obligations of it, enforceable in accordance with
their respective terms, subject to Debtor Relief Laws and equitable principles.

     9.8. Priority of Liens. The Collateral Documents create, as security for the Obligations,
valid and enforceable, exclusive, first priority security interests in and Liens on all of the
Collateral in which it has any right, title or interest, in favor of Administrative Agent for

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the benefit of the Secured Parties, subject to no other Liens, except as enforceability may be
limited by Debtor Relief Laws and equitable principles. Such security interests in and Liens on
the Collateral in which it has any right, title, or interest shall be superior to and prior to the
rights of all third parties in such Collateral, and, other than in connection with any future
change in its name, identity or structure, or the location of its chief executive office, no
further recordings or filings are or will be required in connection with the creation, perfection
or enforcement of such security interests and Liens, other than the filing of continuation
statements in accordance with applicable law. Each Lien referred to in this Section 9.7 is and
shall be the sole and exclusive Lien on the Collateral in which it has any right, title or
interest.

     9.9. Financial Condition. Each Borrower Party has delivered to Administrative Agent: (a) the
most-recently available copies of the financial statements and reports described in Section 10.1;
or, with respect to such requirement on the Closing Date, if such statements and reports are not
then available (b) a pro forma balance sheet as of the Closing Date; in each case certified as true
and correct in all material respects by a Responsible Officer of such Borrower Party. Such
statements fairly present, in all material respects, the financial condition of such Borrower Party
as of the applicable date of delivery, and have been prepared in accordance with GAAP, except as
provided therein.

     9.10. Full Disclosure. There is no material fact that any Credit Party has not disclosed to
Administrative Agent in writing which would reasonably be expected to result in a Material Adverse
Effect. No information heretofore furnished by any Credit Party in connection with this Credit
Agreement, the other Loan Documents or any transaction contemplated hereby or thereby contains any
untrue statement of a material fact that would reasonably be expected to result in a Material
Adverse Effect.

     9.11. No Default. No event has occurred and is continuing which constitutes an Event of
Default or a Potential Default.

     9.12. No Litigation. There are no actions, suits, investigations or legal, equitable,
arbitration or administrative proceedings pending, or to the knowledge of a Responsible Officer of
it, threatened, against such Credit Party that would reasonably be expected to result in a Material
Adverse Effect.

     9.13. Material Adverse Change. No changes to it have occurred since the date of its most
recent financial statements delivered to Lenders which would reasonably be expected to result in a
Material Adverse Effect.

     9.14. Taxes. To the extent that failure to do so would have a Material Adverse Effect, all
tax returns required to be filed by it in any jurisdiction have been filed and all taxes,
assessments, fees, and other governmental charges upon it or upon any of its respective properties,
income or franchises have been paid prior to the time that such taxes could give rise to a lien
thereon. There is no proposed tax assessment against it or any basis for such assessment which is
material and is not being contested in good faith.

     9.15. Jurisdiction of Formation; Principal Office. (a) The jurisdiction of formation of
Borrower is Delaware; (b) the jurisdiction of formation of Managing Member is Delaware; (c)

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the jurisdiction of formation of Guarantor is Delaware; and (d) the jurisdiction of formation
of Pledgor is Maryland.

     9.16. ERISA Compliance. It has not established nor does it maintain any Plan. (a) Each of
Credit Party and Guarantor is an Operating Company; or (b) the underlying assets of each Credit
Party do not otherwise constitute Plan Assets.

     9.17. Compliance with Law. It is, to the best of its knowledge, in compliance in all material
respects with all material laws, rules, regulations, orders, and decrees which are applicable to it
or its properties, including, without limitation, Environmental Laws.

     9.18. Hazardous Substances. To the knowledge of its Responsible Officers, it: (a) has not
received any notice or other communication or otherwise learned of any Environmental Liability
which would individually or in the aggregate reasonably be expected to have a Material Adverse
Effect arising in connection with: (i) any non-compliance with or violation of the requirements of
any Environmental Law by any Credit Party, or any permit issued under any Environmental Law to such
Credit Party; or (ii) the Release or threatened Release of any Hazardous Material into the
environment; and (b) to its knowledge, has threatened or actual liability in connection with the
Release or threatened Release of any Hazardous Material into the environment which would
individually or in the aggregate reasonably be expected to have a Material Adverse Effect.

     9.19. Insider. It is not an “executive officer,” “director,” or “person who directly or
indirectly or acting through or in concert with one or more persons owns, controls, or has the
power to vote more than 10% of any class of voting securities” (as those terms are defined in 12
U.S.C. §375b or in regulations promulgated pursuant thereto) of any Lender, of a bank holding
company of which any Lender is a subsidiary, or of any subsidiary, of a bank holding company of
which any Lender is a subsidiary, of any bank at which any Lender maintains a correspondent
account, or of any bank which maintains a correspondent account with any Lender.

     9.20. Properties. Each Credit Party has good title to, or valid leasehold interests in, all
its real and personal property material to its business, except for any defects that, individually
or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. Each
Credit Party owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other
intellectual property material to its business, and the use thereof by such Credit Party and its
subsidiaries does not infringe upon the rights of any other Person, except for any such
infringements that, individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.

     9.21. Operating Structure. As of the date hereof, the sole Managing Member of Borrower is
Managing Member. The only members of Borrower and the only Stockholders of Pledgor are set forth
on Exhibit A attached hereto and incorporated herein by reference (or on a revised Exhibit A
delivered to Administrative Agent in accordance with Section 11.5 hereof), and the Capital
Commitment of each Investor is set forth on Exhibit A (or on such revised Exhibit A).

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     9.22. Capital Commitments and Contributions. The aggregate amount of the Unfunded Capital
Commitments of all Investors as of the date hereof is as set forth on Exhibit A. The aggregate
amount of the Unfunded Capital Commitments of all Included Investors and Designed Investors
(separately) as of the date hereof is as set forth on Exhibit A. There are no Capital Call Notices
outstanding except as otherwise disclosed in writing to Administrative Agent. To its knowledge, no
Investor is in default under the Operating Agreement, Partnership Agreement or Stockholders
Agreement, as applicable. Prior to the date hereof, each Credit Party has satisfied all conditions
to its rights to make a Capital Call, including any and all conditions contained in its Constituent
Documents.

     9.23. Fiscal Year. Its fiscal year is the calendar year.

     9.24. Investment Company Act. It is not required to register as an “investment company”
within the meaning of the Investment Company Act of 1940, as amended.

     9.25. Margin Stock. It is not engaged in the business of extending credit for the purpose of
purchasing or carrying Margin Stock, and no proceeds of any Loan or Letter of Credit will be used:
(a) to purchase or carry any Margin Stock or to extend credit to others for the purpose of
purchasing or carrying any Margin Stock; (b) to reduce or retire any indebtedness which was
originally incurred to purchase or carry any such Margin Stock; or (c) for any other purpose which
might constitute this transaction a “purpose credit” within the meaning of Regulation T, U, or X.
Neither it nor any Person acting on its behalf has taken or will take any action which might cause
any Loan Document to violate Regulation T, U or X or any other regulation of the Board of Governors
of the Federal Reserve System or to violate Section 7 of the Securities Exchange Act, in each case
as now in effect or as the same may hereafter be in effect.

     9.26. Foreign Asset Control Laws. Neither it nor any Affiliate thereof, and no Investor or,
to its knowledge, Affiliate thereof, is a Person named on a list published by the Office of Foreign
Assets Control (“OFAC”) of the United States Treasury Department or is a Person with whom dealings
are prohibited under any OFAC regulations. To its knowledge, no Investor’s funds used in
connection with this transaction are derived from illegal or suspicious activities.

     9.27. Brokers’ Fees. No Credit Party has dealt with any broker or finder with respect to the
transactions contemplated by the Loan Documents or otherwise in connection with the Loan Documents.

     9.28. Solvency. Each Credit Party is, and after consummation of the transactions contemplated
by the Loan Documents will be, Solvent.

     9.29. Managing Member Representation. Managing Member has received direct or indirect benefit
from the Loans and Letters of Credit evidenced by the Obligations and the grant of the security
interest in the collateral was a condition to granting such Loans and issuance of such Letters of
Credit.

     9.30. Guarantor Representation. Guarantor has received direct or indirect benefit from the
Loans and Letters of Credit evidenced by the Obligations and the grant of the security

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interest in the collateral was a condition to granting such Loans and issuance of such Letters
of Credit.

     9.31. Pledgor Representation. Pledgor has received direct or indirect benefit from the Loans
and Letters of Credit evidenced by the Obligations and the grant of the security interest in the
Collateral was a condition to granting such Loans and issuance of such Letters of Credit.

     9.32. Investments. No investments made by any Credit Party or their subsidiaries, directly or
indirectly, are in violation of, or would cause a default under, the terms of the Operating
Agreement, the Partnership Agreement or the Stockholders Agreement.

     9.33. Investor Documents. To the knowledge of each Credit Party after commercially reasonable
inquiry, each Investor Letter and Stockholders Agreement, as applicable, have been duly authorized
and executed by each Investor and constitute the legal, valid and binding obligations of each
Investor, enforceable against each Investor in accordance with their terms.

     9.34. Advisory Committee. The Credit Parties confirm that the members of the Advisory
Committee (as defined in the Operating Agreement) as of the date hereof are Alan Forman, Verna Kuo,
Susan Meaney, Denise Strack and Laudan Nabizadeh.

     10. AFFIRMATIVE COVENANTS. So long as Lenders have any commitment to lend hereunder or the Letter
of Credit Issuer has any obligation to cause the issuance of any Letters of Credit hereunder, and
until payment in full of the Notes and the performance in full of the Obligations under this Credit
Agreement and the other Loan Documents, Borrower and each other Credit Party, as applicable, each
agrees that, unless Administrative Agent shall otherwise consent in writing based upon the approval
of the Required Lenders (unless the approval of Administrative Agent alone or a different number of
Lenders is expressly permitted below):

     10.1. Financial Statements, Reports and Notices. Borrower shall deliver to Administrative
Agent sufficient copies for each Lender of the following:

     (a) Annual Statements. As soon as reasonably available and in any event within one
hundred twenty (120) days after the end of each fiscal year of Borrower, audited,
unqualified financial statements of Borrower, including a consolidated balance sheet of
Borrower and its consolidated subsidiaries as of the end of such fiscal year and the related
consolidated statements of operations for such fiscal year prepared by independent public
accountants of nationally recognized standing;

     (b) Quarterly Statements. As soon as available and in any event within sixty (60) days
after the end of each quarter of each fiscal year of Borrower, an unaudited consolidated
balance sheet of Borrower and its consolidated subsidiaries as of the end of such quarter
and the related unaudited consolidated statements of operations for such quarter;

     (c) Borrowing Base Certificate. Concurrently with the delivery of each Loan Notice or
Request for Letter of Credit and each annual and quarterly report referenced in Sections
10.1(a) and 10.1(b) hereof, and as of the last calendar day of any calendar month when no
Borrowing has been made during such calendar month, a

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Borrowing Base Certificate signed by a Responsible Officer of Borrower and Managing
Member: (i) setting forth the Capital Contributions and Unfunded Capital Commitments of all
of the Investors and a calculation of the Available Loan Amount (all as of the end of the
relevant period); (ii) specifying changes, if any, in the names of Investors; and (iii)
listing Investors who have not delivered Investor Letters or with respect to Subsequent
Investors, who have not satisfied the conditions of Section 11.5(c) hereof;

     (d) Compliance Certificate. Simultaneously with the delivery of the reports described
in clauses (a) and (b) above, a
compliance certificate (a “Compliance
Certificate”),
certified by a Responsible Officer of Borrower to be true and correct, substantially in the
form of Exhibit O attached hereto (with blanks appropriately completed in conformity
herewith): (i) stating that such officer is familiar with the terms and provisions of the
Loan Documents; (ii) certifying that such financial statements fairly present the financial
condition and the results of operations of the Borrower on the dates and for the periods
indicated, on the basis of GAAP, subject, in the case of interim financial statements, to
normally recurring year-end adjustments; (iii) stating that the Borrowers are in compliance
with all covenants in Section 10 hereof, including the covenants set forth in Section 10.11,
and containing the calculations evidencing such compliance; (iv) stating whether any Event
of Default or Potential Default exists on the date of such certificate and, if any Event of
Default or Potential Default then exists, setting forth the details thereof and the action
which the Credit Parties are taking or propose to take with respect thereto; (v) setting
forth the Unfunded Capital Commitments of all Investors (breaking out Included Investors and
Designated Investors) and a calculation of the Available Loan Amount (all as of the end of
the relevant period); (vi) specifying changes, if any, in the name of any Investor or in the
identity of any Investor, by merger or otherwise; and (vii) listing Investors which have
been subject to an Exclusion Event.

     (e) ERISA Notices. Promptly upon any Credit Party obtaining knowledge or a reasonable
belief that its assets are, or are about to become, Plan Assets, such Credit Party shall
deliver written notice thereof to Administrative Agent (an “ERISA Event Notice”), and shall,
in such notice, or in subsequent written notices as events develop, notify Administrative
Agent of any actions contemplated by in connection therewith. Each Credit Party shall,
simultaneously with the delivery of any ERISA Notice to any Investors, deliver a copy of the
same to Administrative Agent;

     (f) ERISA Certification. Annually (to be delivered within forty-five (45) days
following each annual valuation period of the Credit Parties and with the Compliance
Certificate of Borrower pursuant to Section 10.1(d)), a certification from a Responsible
Officer of the Credit Parties prepared in consultation with counsel that the assets of the
Credit Parties do not constitute Plan Assets;

     (g) Reporting Relating to Investors. Promptly upon the receipt thereof, copies of all
financial statements, notices of default, notices relating in any way to an Investor’s
funding obligation and notices containing any reference to misconduct of any Credit Party,
sent to or received by a Borrower and/or any Credit Party from an Investor; and

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     (h) Other Reporting. Simultaneously with delivery to the Investors, copies of all
other material financial statements, appraisal reports, notices, and other matters at any
time or from time to time prepared by a Credit Party and furnished to the Investors,
including, without limitation, any notice of default, notice of election or exercise of any
rights or remedies under the Operating Agreement, the Partnership Agreement, the
Stockholders Agreement, the Investor Letters or the Constituent Documents of any Credit
Party, or any notices relating in any way to any Investor’s Capital Commitment, and any
notice relating in any way to the misconduct of any Credit Party.

     10.2. Payment of Taxes. Each Credit Party will pay and discharge all taxes, assessments, and
governmental charges or levies imposed upon it, upon its income or profits, or upon any property
belonging to it before delinquent, if such failure would have a Material Adverse Effect; provided,
however, that no Credit Party shall be required to pay any such tax, assessment, charge, or levy if
and so long as the amount, applicability, or validity thereof shall currently be contested in good
faith by appropriate proceedings and appropriate reserves therefor have been established.

     10.3. Maintenance of Existence and Rights. Each Credit Party will preserve and maintain its
existence. Each Credit Party shall further preserve and maintain all of its rights, privileges,
and franchises necessary in the normal conduct of its business and in accordance with all valid
regulations and orders of any Governmental Authority the failure of which would have a Material
Adverse Effect.

     10.4. Notice of Default. Each Credit Party will furnish to Administrative Agent, promptly
upon becoming aware of the existence of any condition or event which constitutes an Event of
Default or a Potential Default (including, without limitation, notice from the Investors of any
Credit Party that the Investors intend to seek a “Cause Event” as defined in the Operating
Agreement, Partnership Agreement and Stockholders Agreement, a written notice specifying the nature
and period of existence thereof and the action which the Credit Parties are taking or propose to
take with respect thereto. Each Credit Party shall promptly notify Administrative Agent in writing
upon becoming aware: (a) that any Investor has violated or breached any material term of the
Operating Agreement, Partnership Agreement or Stockholders Agreement, as applicable, or has become
a Defaulting Investor; or (b) of the existence of any condition or event which, with the lapse of
time or giving of notice or both, would cause an Investor to become a Defaulting Investor.

     10.5. Other Notices. Each Credit Party will, promptly upon receipt of actual knowledge
thereof by a Responsible Officer, notify Administrative Agent of any of the following events that
would reasonably be expected to result in a Material Adverse Effect: (a) any change in the
financial condition or business of such Credit Party; (b) any default by such Credit Party under
any material agreement, contract, or other instrument to which such Credit Party is a party or by
which any of its properties are bound, or any acceleration of the maturity of any material
indebtedness owing by such Credit Party; (c) any uninsured claim against or affecting such Credit
Party or any of its properties; (d) the commencement of, and any material determination in, any
litigation with any third party or any proceeding before any Governmental Authority affecting such
Credit Party; (e) any Environmental Complaint or any claim, demand, action, event, condition,
report or investigation indicating any potential or actual liability of such Credit

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Party arising in connection with: (i) the non-compliance with or violation of the requirements
of any Environmental Law or any permit issued under any Environmental Law; or (ii) the Release or
threatened Release of any Hazardous Material into the environment; (f) the existence of any
Environmental Lien on any Properties or assets of such Credit Party; (g) any material remedial
action taken by any Credit Party in response to any order, consent decree or judgment of any
Governmental Authority or any Environmental Liability; or (h) the listing of any of such Credit
Party’s Properties on CERCLIS to the extent that such Credit Party obtains knowledge of such
listing, whether or not such listing would reasonably be expected to result in a Material Adverse
Effect.

     10.6. Compliance with Loan Documents, Operating Agreement, Partnership Agreement and
Stockholders Agreement. Unless otherwise approved in accordance with the terms of this Credit
Agreement (which approval, by such terms, may require more or fewer Lenders than the Required
Lenders), each Credit Party will promptly comply with any and all covenants and provisions of this
Credit Agreement, the Notes, and all of the other Loan Documents executed by it. Each Borrower
Party will use the proceeds of any Capital Call Notices only for such purposes as are permitted by
its Constituent Documents.

     10.7. Books and Records; Access. Each Credit Party will give any representative of
Administrative Agent, Managing Agent or Lenders, or any of them, reasonable access during all
business hours to, and permit representatives to examine, copy, or make excerpts from, any and all
books, records, and documents in the possession of such Credit Party and relating to its affairs,
and to inspect any of the properties of such Credit Party.

     10.8. Compliance with Law. Each Credit Party will comply in all material respects with all
material laws, rules, regulations, and all orders of any Governmental Authority, including,
Environmental Laws and ERISA.

     10.9. Insurance. Each Credit Party will maintain workmen’s compensation insurance, liability
insurance, and insurance on its present and future properties, assets, and business against such
casualties, risks, and contingencies, and in such types and amounts, as are consistent with
customary practices and standards of their industry and the failure of which to maintain could have
a Material Adverse Effect.

     10.10. Authorizations and Approvals. Each Credit Party will promptly obtain, from time to
time at its own expense, all such governmental licenses, authorizations, consents, permits and
approvals as may be required to enable such Credit Party to comply with its respective obligations
hereunder, under the other Loan Documents, the Operating Agreement, the Partnership Agreement, the
Stockholders Agreement and its respective Constituent Documents.

     10.11. Maintenance of Liens. Each Credit Party shall perform all such acts and execute all
such documents as Administrative Agent may reasonably request in order to enable the Secured
Parties to report, file, and record every instrument that Administrative Agent may deem necessary
in order to perfect and maintain the Secured Parties’ Liens and security interests in the
Collateral and otherwise to preserve and protect the rights of Secured Parties under the Collateral
Documents.

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     10.12. Further Assurances. Each Credit Party will make, execute or endorse, and acknowledge
and deliver or file or cause the same to be done, all such vouchers, invoices, notices,
certifications, and additional agreements, undertakings, conveyances, transfers, assignments,
financing statements, or other assurances, and take any and all such other action, as
Administrative Agent may, from time to time, reasonably deem necessary in connection with this
Credit Agreement or any of the other Loan Documents, the obligations of the Credit Parties
hereunder or thereunder, or for better assuring and confirming unto Secured Parties all or any part
of the security for any of such obligations anticipated herein.

     10.13. Investor Financial and Rating Information. Each Credit Party shall request, from each
Investor (without duplication), financial information required under the applicable Investor
Letter, as agreed from time to time with Administrative Agent, and shall, upon receipt of such
information, promptly deliver same to Administrative Agent, or shall promptly notify Administrative
Agent of its failure to timely obtain such information. The Credit Parties will promptly notify
Administrative Agent in writing (but in no event later than five (5) Business Days) after: (a)
becoming aware of: (i) any decline in the Rating of any Included Investor, or decline in the
capital status of any Included Investor that is a bank holding company, whether or not such change
results in an Exclusion Event and (ii) any other Exclusion Event; and (b) becoming aware of the
existence of any condition or event which, with the lapse of time or giving of notice or both,
would cause an Exclusion Event.

     10.14. Certain Included Investor Requirements. In addition to the other requirements of this
Credit Agreement, each Included Investor that is: (i) organized under the laws of any jurisdiction
other than the United States of America or any state thereof shall deliver to Administrative Agent
a written submission to the jurisdiction of a United States Federal District Court and a United
States state court with respect to any litigation arising out of or in connection with its Investor
Letter or any Constituent Document of any Credit Party (each submission to be in form and substance
reasonably satisfactory to Administrative Agent, including provisions relating to waiver of venue,
waiver of defense of inconvenient forum, and consent to service of process; or (ii) a Governmental
Authority or an instrumentality of a Governmental Authority or majority-owned by a Governmental
Authority or otherwise entitled to any immunity in respect of any litigation in any jurisdiction,
court or venue, shall deliver to Administrative Agent a written waiver (in form and substance
reasonably satisfactory to Administrative Agent) of any such claim of immunity.

     10.15. Covenants of Qualified Borrowers. The covenants and agreements of Qualified Borrowers
hereunder shall be binding and effective only upon and after the execution and delivery of a
Qualified Borrower Note by such Qualified Borrower.

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11. NEGATIVE COVENANTS. So long as Lenders have any commitment to lend hereunder or the Letter of
Credit Issuer has any obligation to cause the issuance of any Letter of Credit hereunder, and until
payment and performance in full of the Obligations under this Credit Agreement and the other Loan
Documents, each Credit Party agrees that, without the written consent of Administrative Agent,
based upon the approval of Required Lenders (unless the approval of Administrative Agent alone or a
different number of Lenders is expressly permitted below):

     11.1. Mergers. No Credit Party will merge or consolidate with or into any Person, unless such
Credit Party is the surviving entity; provided, however, that any such merger (a) must be duly
authorized under the Constituent Documents of the applicable Credit Party or the applicable
managing member or general partner, as applicable, and (b) must not adversely affect the
enforceability of the Capital Commitments and the Investor Letters of the Investors in the
applicable Credit Party. No Credit Party will take any action to dissolve, terminate, or
liquidate, including, without limitation, any action to sell or dispose of all or substantially all
of its property..

     11.2. Negative Pledge. Without the approval of all Lenders, no Credit Party will create or
suffer to exist any Lien upon the Collateral, other than the first priority security interest in
and upon the Collateral (or any portion thereof) to Administrative Agent for the benefit of the
Secured Parties.

     11.3. Fiscal Year and Accounting Method. Without the prior written consent of Administrative
Agent alone (such approval not to be unreasonably withheld or delayed), no Credit Party will change
its fiscal year or method of accounting.

     11.4. Constituent Documents. Without the prior written consent of Administrative Agent
consistent with this Section 11.4, no Credit Party shall alter, amend, modify, terminate, or change
any provision of its Constituent Documents affecting such Credit Party’s or the Investors’ debts,
duties, obligations, and liabilities, and the rights, titles, security interests, liens, powers and
privileges of any Credit Party, Administrative Agent or Secured Parties, in each case relating to
this Agreement, the Obligations, Capital Call Notices, Capital Commitments, Capital Contributions
or Unfunded Capital Commitments; or amend the terms of Articles V or XI of the Operating Agreement
or Section 6 of the Stockholders Agreement (or comparable provisions regarding leverage) (each an
“adverse amendment”); or suspend, reduce, excuse or terminate any Investor’s Unfunded Commitments.
With respect to any proposed amendment, modification or change to any Constituent Document, the
applicable Credit Party shall notify Administrative Agent of such proposal. Administrative Agent
shall determine, in its sole discretion (that is, the determination of the Lenders shall not be
required) on Administrative Agent’s good faith belief, whether such proposed amendment,
modification or change to such Constituent Document is an adverse amendment, and shall use
reasonable efforts to notify such Credit Party of its determination within five (5) Business Days
of the date on which it received such notification pursuant to Section 14.7. If Administrative
Agent determines that the proposed amendment is an adverse amendment, the approval of the Required
Lenders and Administrative Agent will be required (unless the approval of all Lenders is required
consistent with the terms of Section 11.6), and Administrative Agent shall promptly notify the
Lenders of such request for such approval, distributing, as appropriate, the proposed amendment and
any other relevant

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information provided by such Credit Party, to which the Lenders will respond to within ten
(10) Business Days. If Administrative Agent determines that the proposed amendment is not an
adverse amendment, such Credit Party may make such amendment without the consent of Lenders.
Notwithstanding the foregoing, without the consent of Administrative Agent or the Lenders, such
Credit Party may amend its Constituent Documents: (i) to admit new Investors to the extent
permitted by this Credit Agreement; and (ii) to reflect transfers of interests permitted by this
Credit Agreement.

     11.5. Transfer by, or Admission of, Investors.

     (a) Transfer of Equity Interest. Any transfer of an Equity Interest: (i) by any
Investor to any of its affiliates shall be made with prior written notice to Administrative
Agent promptly upon any Credit Party being aware of such proposed transfer; and (ii) by any
Investor to any other Person, with prior written notice to Administrative Agent at least
twenty (20) Business Days prior to the proposed date of transfer, in each case provided that
the transferee is not named on a list published by OFAC. In the event that the applicable
transferee does not itself qualify as an Included Investor or Designated Investor or if the
consummation of such transfer would require a mandatory prepayment pursuant to Section
2.1(d) for any reason, the Credit Parties will issue Capital Call Notices in an amount
sufficient to cure such Implicit Borrowing Base Deficit and will pay the mandatory
prepayment prior to permitting the consummation of any such transfer.

     (b) Admission of Investors. No Credit Party shall admit any Person as an additional
Investor without the prior written consent of Administrative Agent acting alone, such
consent not to be unreasonably withheld.

     (c) Documentation Requirements. Each Borrower shall require that: (i) any Person
admitted as a substitute or new Included Investor or Designated Investor (whether due to a
transfer by an existing Investor or otherwise) (a “Subsequent Investor”) shall, as a
condition to such admission, deliver an Investor Letter and provide other documentation
similar to that described in Section 8.1(p) satisfactory to Administrative Agent in its
reasonable discretion; (ii) comply with all requirements herein for an Included Investor or
Designated Investor, as applicable, and (iii) any existing Included Investor or Designated
Investor that is a transferee from another Investor shall provide confirmation of its
obligations under its Investor Letter with respect to any increase in its Capital Commitment
relating to such transfer, and, to the extent not addressed in the documentation previously
delivered by such Investor, evidence of its authority to assume such increased Capital
Commitment, all as satisfactory to Administrative Agent in its reasonable discretion. Any
substitute or new Investor that is unable to comply with the requirements of this Section
11.5(c) shall be a Non-Included Investor and be excluded from the Borrowing Base. In the
event any Person is admitted as a Subsequent Investor, Borrowers will promptly deliver to
Administrative Agent a revised Exhibit A to this Credit Agreement, containing the names and
addresses of each Investor and the Capital Commitments of each.

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     11.6. Capital Commitments. No Credit Party shall: (a) without the prior written consent of
Administrative Agent, which may be withheld in its sole discretion, cancel, reduce, excuse, suspend
or defer the Capital Commitment of any non-Included Investor; and (b) without the prior written
approval of Administrative Agent and all Lenders: (i) issue any Capital Call Notices other than as
contemplated by Section 5.2(c); (ii) cancel, reduce, excuse, suspend or defer the Capital
Commitment of any Included Investor or Designated Investor; or (iii) excuse any Investor from or
permit any Investor to defer any Capital Contribution, if the proceeds from the related Capital
Call Notice are to be applied to the Obligations hereunder.

     11.7. ERISA Compliance. No Credit Party shall establish or maintain any Plan. Without the
approval of all Lenders, no Credit Party will take any action that would cause its underlying
assets to constitute Plan Assets.

     11.8. Environmental Matters. Except for such conditions as are in or will promptly be brought
into compliance with relevant Environmental Laws or otherwise would not reasonably be expected to
result in a Material Adverse Effect, no Credit Party: (a) shall cause any Hazardous Material to be
generated, placed, held, located or disposed of on, under or at, or transported to or from, any
Property of any Credit Party in material violation of Environmental Law; or (b) shall permit any
such Property to ever be used as a dump site or storage site (whether permanent or temporary) for
any Hazardous Material in material violation of Environmental Law.

     11.9. Dissolution. Without the prior written consent of the Administrative Agent and all
Lenders, no Credit Party will take any action to dissolve or terminate any Credit Party.

     11.10. Limitations on Dividends and Distributions.

     (a) No Credit Party shall declare or pay any dividends or distributions except as
permitted under its Constituent Documents.

     (b) No Credit Party shall declare or pay any dividends or distributions if: (i) any
Event of Default exists; or (ii) a Potential Default exists.

     11.11. Limitation on Debt. (a) Borrower shall not, without the prior written consent of the
Administrative Agent and the Required Lenders, incur, together with its Affiliates on a
consolidated basis in accordance with GAAP, (i) aggregate Indebtedness (including the Obligations)
in an amount in excess of that permitted under the Operating Agreement; or (ii) any recourse debt
(other than its obligations under this Credit Agreement) in excess of twenty-five (25%) percent of
amounts under Section 11.11(a)(i); and (b) Pledgor shall not incur any Indebtedness (other than its
obligations under this Credit Agreement).

     11.12. Limitation on Managing Member’s Activities. The Managing Member shall not: (a) without
the prior written consent of the Administrative Agent and the Required Lenders: (i) take any
actions that will cause the Managing Member or the Borrower to dissolve, terminate, merge or
consolidate; or (ii) create or suffer to exist any mortgage, pledge, lien, or other security
interest upon its Membership Interest in Borrower; or (b) transfer its Membership Interest in
Borrower without the prior written consent of Administrative Agent and the Required Lenders.

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     11.13. Limitation on Pledgor’s Activities. Pledgor shall not: (a) without the prior written
consent of the Administrative Agent and the Required Lenders: (i) take any actions that will cause
the Pledgor to dissolve, terminate, merge or consolidate; or (ii) create or suffer to exist any
mortgage, pledge, lien, or other security interest upon its Membership Interest in Borrower; or (b)
transfer its Membership Interest in Borrower without the prior written consent of Administrative
Agent and the Required Lenders.

     11.14. Limitation on Guarantor’s Activities. Guarantor shall not: (a) without the prior
written consent of the Administrative Agent and the Required Lenders: (i) take any actions that
will cause the Guarantor or Acadia Realty Acquisition III LLC to dissolve, terminate, merge or
consolidate; or (ii) create or suffer to exist any mortgage, pledge, lien, or other security
interest upon its equity interest in Acadia Realty Acquisition III LLC or permit Acadia Realty
Acquisition III LLC to create or suffer to exist any mortgage, pledge, lien, or other security
interest upon its Membership Interest in Borrower; or (b) transfer its equity interest in Acadia
Realty Acquisition III LLC or permit Acadia Realty Acquisition III LLC to transfer its Membership
Interest in Borrower, in each case without the prior written consent of Administrative Agent and
the Required Lenders.

     11.15. Investor Withdrawal. No Credit Party shall take any action which would permit any
Investor to withdraw (unless a prepayment is made such that no Implicit Borrowing Base Deficit
would occur as a result of such withdrawal) from any Credit Party in accordance with the Operating
Agreement, Partnership Agreement, or the Stockholders Agreement, as applicable.

12. EVENTS OF DEFAULT

     12.1. Events of Default. An “Event of Default” shall exist if any one or more of the
following events (herein collectively called “Events of Default”) shall occur and be continuing:

     (a) (i) Borrower or any Qualified Borrower shall fail to pay when due any principal of
the Obligations; or (ii) any Credit Party or any Qualified Borrower shall fail to pay when
due any interest on the Obligations or any fee, expense, or other payment required
hereunder, including, without limitation, payment of cash for deposit as cash collateral as
required hereunder, and such failure under this clause (ii) shall continue for one (1)
Business Day thereafter (except for the failure to pay the Obligations in full on the
Maturity Date for which no notice shall be required and except for the failure to prepay any
amount required under Section 2.1(d) hereof for which no additional notice shall be
required);

     (b) any representation or warranty made by any Credit Party or any Qualified Borrower
under this Credit Agreement, or any of the other Loan Documents executed by either of them,
or in any certificate or statement furnished or made to Lenders or any of them by any Credit
Party or any Qualified Borrower pursuant hereto or in connection herewith or with the Loans,
shall prove to be untrue or inaccurate in any material respect as of the date on which such
representation or warranty is made;

     (c) default shall occur in the performance of any of the covenants or agreements
contained herein (other than the covenants contained in Section 2.1(d) or

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Section 11), or of the covenants or agreements of any Credit Party or any Qualified
Borrower contained in any other Loan Documents executed by such Person, and such default
shall continue uncured to the satisfaction of Administrative Agent for a period of thirty
(30) days after written notice thereof has been given by Administrative Agent to Borrower,
unless it cannot be cured within thirty (30) days and provided the party is diligently
proceeding to cure (provided that such thirty (30)-day cure period shall not apply
respecting covenants of a Credit Party relating to notices to be given by a Credit Party,
but a three (3)-day grace period shall apply);

     (d) default shall occur in the performance of the covenants or agreements of Borrower
or any Qualified Borrower contained in Section 2.1(d) or Section 11;

     (e) any of the Loan Documents executed by a Credit Party or any Qualified Borrower
shall cease, in whole or in material part, to be legal, valid, binding agreements
enforceable against the Credit Parties or such Qualified Borrower in accordance with the
terms thereof or shall in any way be terminated or become or be declared ineffective or
inoperative or shall in any way whatsoever cease to give or provide the respective liens,
security interest, rights, titles, interest, remedies, powers, or privileges intended to be
created thereby;

     (f) default shall occur in the payment of any recourse indebtedness or Guaranty
Obligation of Borrower or Guarantor (other than the Obligations), in an aggregate amount
greater than or equal to $10,000,000, and such default shall continue for more than the
applicable period of grace, if any;

     (g) any Credit Party shall: (i) apply for or consent to the appointment of a receiver,
trustee, custodian, intervenor, or liquidator of itself or of all or a substantial part of
its assets; (ii) file a voluntary petition in bankruptcy or admit in writing that it is
unable to pay its debts as they become due; (iii) make a general assignment for the benefit
of creditors; (iv) file a petition or answer seeking reorganization or an arrangement with
creditors or to take advantage of any Debtor Relief Laws; (v) file an answer admitting the
material allegations of, or consent to, or default in answering, a petition filed against it
in any bankruptcy, reorganization or insolvency proceeding; or (vi) take partnership or
corporate action for the purpose of effecting any of the foregoing;

     (h) a case or proceeding shall be commenced, without application or consent of any
Credit Party, in any court, seeking an order for relief under the Bankruptcy Code, to
adjudicate if bankrupt or insolvent or seeking the liquidation, reorganization, debt
arrangement, dissolution, winding up or composition or readjustment of debts of any Credit
Party, the appointment of a trustee, receiver, custodian, liquidator, assignee or sequestor
(or similar official) for such Person or all or substantially all of the assets of such
Person, or any similar action with respect to such Person under any existing or future law
of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization, winding up or composition or adjustment of debts, and such case or
proceeding shall continue undismissed, or unstayed or in effect, for a period of sixty (60)
consecutive days or results in the entering of an order for relief or any such adjudication
or appointment

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     (i) any final judgment(s) for the payment of money in excess of the sum of $5,000,000
in the aggregate shall be rendered against any Credit Party and such judgment or judgments
remain unsatisfied for a period of sixty (60) days or would reasonably be expected to have a
Material Adverse Effect, unless covered by insurance or unless being appealed and the
applicable Credit Party or such Qualified Borrower has posted a bond or cash collateral;

     (j) Managing Member shall cease to be the sole Managing Member of Borrower or Managing
Member shall be removed as the Managing Member of Borrower;

     (k) Managing Member shall repudiate, challenge, or declare unenforceable its obligation
to make contributions to the capital of Borrower pursuant to its Capital Commitments or
shall otherwise disaffirm the provisions of the Operating Agreement;

     (l) there shall occur any change in the condition (financial or otherwise) of any
Credit Party which, in the reasonable judgment of Administrative Agent, has a Material
Adverse Effect (it being understood that the occurrence of Exclusion Events in respect of
one or more Investors is not, in and of itself, an event constituting a Material Adverse
Effect);

     (m) Pledgor shall repudiate, challenge, or declare unenforceable its obligation to make
contributions to the capital of Borrower pursuant to its Capital Commitments or shall
otherwise disaffirm the provisions of the Operating Agreement or shall repudiate, challenge,
declare unenforceable or default under its obligations under the Capital Contributions
Pledge Agreement;

     (n) the removal of the Managing Member pursuant to Section 10.2(a) of the Operating
Agreement or the removal of the Acadia D.R. Management Inc. pursuant to Section 5.2 of the
Stockholders Agreement;

     (o) Guarantor shall repudiate, challenge declare unenforceable or default under its
obligations under the Guaranty of Capital; or

     (p) the Borrowing Base Deficit is greater than zero (0) and is not eliminated within
one (1) Business Day.

     12.2. Remedies Upon Event of Default. If an Event of Default shall have occurred and be
continuing, then Administrative Agent may, and, upon the direction of the Required Lenders, shall:
(a) suspend the Commitments of Lenders until such Event of Default is cured; (b) terminate the
Commitment of Lenders hereunder; (c) declare the principal of, and all interest then accrued on,
the Obligations to be forthwith due and payable (including the liability to fund the Letter of
Credit Liability pursuant to Section 2.5(g) hereof), whereupon the same shall forthwith become due
and payable without presentment, demand, protest, notice of default, notice of acceleration, or of
intention to accelerate or other notice of any kind all of which each of Borrower, each Qualified
Borrower and each other Credit Party hereby expressly waives, anything contained herein or in any
other Loan Document to the contrary notwithstanding; (d) require that the Borrower Parties Cash
Collateralize the Letter of Credit Liability; (e) exercise any right, privilege, or power set forth
in Section 5.2 hereof, including, but not limited to, the

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initiation of Capital Call Notices of the Capital Commitments; or (f) without notice of
default or demand, pursue and enforce any of Administrative Agent’s or Lenders’ rights and remedies
under the Loan Documents, or otherwise provided under or pursuant to any applicable law or
agreement; provided, however, that if any Event of Default specified in Section 12.1(g) or 12.1(h)
hereof shall occur, the principal of, and all interest on, the Obligations shall thereupon become
due and payable concurrently therewith, without any further action by Administrative Agent or
Lenders, or any of them, and without presentment, demand, protest, notice of default, notice of
acceleration, or of intention to accelerate or other notice of any kind, all of which each of
Borrower, each Qualified Borrower and Guarantor hereby expressly waives.

     12.3. Performance by Administrative Agent. Should any Credit Party or any fail to perform any
covenant, duty, or agreement contained herein or in any of the Loan Documents, and such failure
continues beyond any applicable cure period, Administrative Agent may, but shall not be obligated
to, perform or attempt to perform such covenant, duty, or agreement on behalf of such Person. In
such event, each Credit Party shall, at the request of Administrative Agent promptly pay any amount
expended by Administrative Agent in such performance or attempted performance to Administrative
Agent, together with interest thereon at the Default Rate from the date of such expenditure until
paid. Notwithstanding the foregoing, it is expressly understood that neither any of the Agents nor
any of the other Secured Parties assume any liability or responsibility for the performance of any
duties any Credit Party, or any related Person hereunder or under any of the Loan Documents or
other control over the management and affairs of any Credit Party, or any related Person, nor by
any such action shall any of the Agents or any of the other Secured Parties be deemed to create a
partnership arrangement with any Credit Party or any related Person.

13. AGENCY PROVISIONS

     13.1. Appointment and Authorization of Agents.

     (a) Authority. Each Lender (including any Person that is an assignee, participant,
secured party or other transferee with respect to the interest of such Lender in any
Principal Obligation or otherwise under this Credit Agreement) (collectively with such
Lender, a “Lender Party”) hereby irrevocably appoints, designates and authorizes each Agent
(other than a Managing Agent for a different Lender Group) to take such action on its behalf
under the provisions of this Credit Agreement and the other Loan Documents and to exercise
such powers and perform such duties as are expressly delegated to such Agent by the terms
hereof and of the other Loan Documents, together with such other powers as are reasonably
incidental thereto. Notwithstanding any provision to the contrary elsewhere herein and in
any other Loan Documents, no Agent shall have any duties or responsibilities, except those
expressly set forth herein and therein, nor shall any Agent have or be deemed to have any
fiduciary relationship with any Lender Party, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Credit
Agreement or any of the other Loan Documents or otherwise exist against any Agent. Without
limiting the generality of the foregoing sentence, the use of the term “agent” herein and in
the other Loan Documents with reference to any Agent is not intended to connote any
fiduciary or other implied (or express) obligations arising under agency doctrine of any
applicable Law. Instead, such

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term is used merely as a matter of market custom, and is intended to create or reflect
only an administrative relationship between independent contracting parties.

     (b) Release of Collateral. The Secured Parties irrevocably authorize Administrative
Agent, at Administrative Agent’s option and in its discretion, to release any security
interest in or Lien on any Collateral granted to or held by Administrative Agent: (i) upon
termination of this Credit Agreement and the other Loan Documents, termination of the
Commitments and all Letters of Credit (or the Cash Collateralization in full of all Letters
of Credit), and payment in full of all Obligations, including all fees and indemnified costs
and expenses that are then due and payable pursuant to the terms of the Loan Documents; and
(ii) if approved by the requisite Lenders pursuant to the terms of Section 14.1. Upon the
request of Administrative Agent, the Lenders will confirm in writing Administrative Agent’s
authority to release particular types or items of Collateral pursuant to this Section
13.1(b).

     (c) Limitation on Beneficiaries. The provisions of Sections 13.1 through 13.8 and
Section 13.10 are solely for the benefit of the Administrative Agent, the Lenders, the
Letter of Credit Issuer and the other Secured Parties, and no Credit Party shall have rights
as a third party beneficiary of any of such provisions.

     13.2. Delegation of Duties. Each Agent may execute any of its duties under this Credit
Agreement or under the other Loan Documents by or through agents or attorneys-in-fact and shall be
entitled to advice of legal counsel, accountants, and other professionals concerning all matters
pertaining to such duties. No Agent shall be responsible for the negligence or misconduct of any
agent or attorney-in-fact that it selects in the absence of gross negligence or willful misconduct.

     13.3. Exculpatory Provisions. No Agent-Related Person shall be liable for any action taken or
omitted to be taken by it under or in connection herewith or in connection with any of the other
Loan Documents or the transactions contemplated hereby (except for its own gross negligence or
willful misconduct) or be responsible in any manner to any of the Lenders for any recitals,
statements, representations or warranties made by any of the Credit Parties contained herein or in
any of the other Loan Documents or in any certificate, report, document, financial statement or
other written or oral statement referred to or provided for therein, or received by such Agent
under or in connection herewith or in connection with the other Loan Documents, or enforceability
or sufficiency of this Credit Agreement of any of the other Loan Documents, or for any failure of
any Credit Party to perform its obligations hereunder or thereunder. No Agent-Related Person shall
be responsible to any Lender to ascertain or inquire as to the performance or observance of any of
the terms, conditions, provisions, covenants or agreements contained herein or in the other Loan
Documents or as to the use of the proceeds of the Loans or the use of the Letters of Credit or of
the existence or possible existence of any Potential Default or Event of Default or to inspect the
properties, books or records of the Credit Parties. The Agents are not trustees for the Lenders
and owe no fiduciary duty to the Lender Groups. Each Lender recognizes and agrees that
Administrative Agent shall not be required to determine independently whether the conditions
described in Sections 8.2(a) or 8.2(b) have been satisfied and, when Administrative Agent disburses
funds to Borrower or a Qualified Borrower or the

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Letter of Credit Issuer causes Letters of Credit to be issued, it may rely fully upon
statements contained in the relevant requests by a Borrower Party.

     13.4. Reliance on Communications. The Agents shall be entitled to rely, and shall be fully
protected in relying, upon any note, writing, resolution, notice, consent, certificate, affidavit,
letter, cablegram, telegram, facsimile, telex or telephone message, statement, order or other
document or conversation believed by it to be genuine and correct and to have been signed, sent or
made by the proper Person or Persons and upon advice and statements of legal counsel (including,
without limitation, counsel to any of the Credit Parties, independent accountants and other
experts selected by the Agents with reasonable care). Each Agent may deem and treat each Lender as
the owner of its interests hereunder for all purposes unless a written notice of assignment,
negotiation or transfer thereof shall have been filed with Administrative Agent in accordance with
Section 14.12(b). Each Agent shall be fully justified in failing or refusing to take any action
under this Credit Agreement or under any of the other Loan Documents unless it shall first receive
such advice or concurrence of the Lenders as it deems appropriate or it shall first be indemnified
to its satisfaction by the Lenders against any and all liability and expense which may be incurred
by it by reason of taking or continuing to take any such action. Each Agent shall in all cases be
fully protected in acting, or in refraining from acting, hereunder or under any of the other Loan
Documents in accordance with a request of the Required Lenders (or to the extent specifically
required, all of the Lenders) and such request and any action taken or failure to act pursuant
thereto shall be binding upon all the Lenders (including their successors and assigns).

     13.5. Notice of Default. No Agent shall be deemed to have knowledge or notice of the
occurrence of any Potential Default or Event of Default hereunder unless such Agent has received
notice from a Lender or a Borrower Party referring to the Loan Document, describing such Potential
Default or Event of Default and stating that such notice is a “notice of potential default or event
of default.” Each Agent will notify the Lenders of its receipt of any such notice, and
Administrative Agent shall take such action with respect to such Potential Default or Event of
Default as shall be reasonably directed by the requisite Lenders and as is permitted by the Loan
Documents; provided, however, that unless and until the Administrative Agent shall have received
any such request, Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Potential Default or Event of Default as it
shall deem advisable or in the best interest of the Lenders.

     13.6. Non-Reliance on Agents and Other Lenders. Each Lender expressly acknowledges that no
Agent-Related Person or Arranger nor any of their officers, directors, employees, agents,
attorneys-in-fact or affiliates has made any representations or warranties to it and that no act by
any Agent-Related Person or Arranger hereafter taken, including any consent to any acceptance of
any assignment or review of the affairs of any Borrower Party or any of its Affiliates, shall be
deemed to constitute any representation or warranty by the Agent-Related Person or Arranger to any
Lender. Each Lender, including any Lender by assignment, represents to each Agent and Arranger
that it has, independently and without reliance upon any Agent-Related Person, any Arranger or any
other Lender, and based on such documents and information as it has deemed appropriate, made its
own appraisal of and investigation into the business, assets, operations, property, financial and
other conditions, prospects and creditworthiness of each Credit Party (or its Affiliates) and all
applicable bank regulatory laws

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related to the transactions contemplated hereby and made its own decision to make its Loans
hereunder and enter into this Credit Agreement. Each Lender also represents that it shall,
independently and without reliance upon any Agent-Related Person, any Arranger or any other Lender,
and based on such documents and information as it shall deem appropriate at the time, continue to
make its own credit analysis, appraisals and decisions in taking or not taking action under this
Credit Agreement and the other Loan Documents, and to make such investigation as it deems necessary
to inform itself as to the business, assets, operations, property, financial and other conditions,
prospects and creditworthiness of any Borrower Party (or its Affiliates). Except for notices,
reports and other documents expressly required to be furnished to the Lenders by Administrative
Agent hereunder, neither any Agent nor any Arranger shall have any duty or responsibility to
provide any Lender with any credit or other information concerning the business, operations,
assets, property, financial or other conditions, prospects or creditworthiness of the Borrower
Parties which may come into the possession of any Agent-Related Person or Arranger or any of their
officers, directors, employees, agents, attorneys-in-fact or affiliates.

     13.7. Indemnification. Whether or not the transactions contemplated hereby are consummated,
the Alternate Lenders shall indemnify, upon demand, each Agent-Related Person (to the extent not
reimbursed by a Borrower Party and without limiting the obligation of the Borrower Parties to do
so), ratably in accordance with the applicable Alternate Lender’s respective Alternate Lender Pro
Rata Share of its Lender Group’s Lender Group Percentage, and hold harmless each Agent-Related
Person from and against any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind whatsoever which may at any time
(including without limitation at any time following payment in full of the Obligations) be imposed
on, incurred by or asserted against it in its capacity as such in any way relating to or arising
out of this Credit Agreement or the other Loan Documents or any documents contemplated by or
referred to herein or therein or the transactions contemplated hereby or thereby or any action
taken or omitted by it under or in connection with any of the foregoing; provided that no Lender
shall be liable for the payment of any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements resulting from such Person’s
gross negligence or willful misconduct, as finally determined by a court of competent jurisdiction
or related to another Lender Group’s Managing Agent; provided, further, that no action taken in
accordance with the directions of the Required Lenders or all Lenders, as applicable, shall be
deemed to constitute gross negligence or willful misconduct for purposes of this Section 13.7.
Without limitation of the foregoing, each Alternate Lender shall reimburse Administrative Agent,
the Letter of Credit Issuer and its Managing Agent upon demand for its ratable share of any costs
or out-of-pocket expenses (including Attorney Costs) incurred by such Agent in connection with the
preparation, execution, delivery, administration, modification, amendment or enforcement (whether
through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Credit Agreement, any other Loan Document, or any document
contemplated by or referred to herein, to the extent that such Agent is not reimbursed for such
expenses by or on behalf of the Borrower Parties. The agreements in this Section 13.7 shall
survive the termination of the Commitments, payment of all of the Obligations hereunder and under
the other Loan Documents or any documents contemplated by or referred to herein or therein, as well
as the resignation or replacement of any Agent.

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     13.8. Agents in Their Individual Capacity. Each Agent (and any successor acting as an Agent)
and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits
from, acquire equity interests in, and generally engage in any kind of banking, trust, financial
advisory, underwriting or other business with any Credit Party (or any of its subsidiaries or
Affiliates) as though such Agent were not an Agent or a Lender hereunder and without notice to or
consent of the Lenders. The Lenders acknowledge that, pursuant to such activities, any Agent or
its Affiliates may receive information regarding the Credit Parties or their Affiliates (including
information that may be subject to confidentiality obligations in favor of such Person) and
acknowledge that such Agent shall be under no obligation to provide such information to them. With
respect to the Loans made and Letters of Credit issued and all obligations owing to it, an Agent
acting in its individual capacity shall have the same rights and powers under this Credit Agreement
as any Lender and may exercise the same as though it were not an Agent, and the terms “Lender” and
“Lenders” shall include each Agent in its individual capacity.

     13.9. Successor Agent. Any Agent may, at any time, resign upon twenty (20) days written
notice to the Lenders and the Credit Parties. Upon any such resignation of the Administrative
Agent, the Required Lenders shall appoint a successor Administrative Agent from any of the
Alternate Lenders, in consultation with the Borrower. If no successor agent is appointed prior to
the effective date of the resignation of the applicable Agent, then the retiring Agent may appoint,
after consulting with the Lenders and the Borrower, a successor Agent from any of the Alternate
Lenders. Upon the acceptance of its appointment as successor agent hereunder, such successor agent
shall thereupon succeed to all the rights, powers and duties of the retiring Agent, and shall
assume the duties and obligations of such retiring Agent, and the retiring Agent shall be
discharged from its duties and obligations as Agent under this Credit Agreement and the other Loan
Documents. After any retiring Agent’s resignation hereunder as Agent, the provisions of this
Section 13.9 and Sections 14.3 and 13.8 shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was an Agent under this Credit Agreement. If no successor agent
has accepted appointment as Agent by the date which is thirty (30) days following a retiring
Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless thereupon become
effective and the applicable Alternate Lenders shall perform all of the duties of the Agent
hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided
for above.

     13.10. No Other Duties, Etc. Anything herein to the contrary notwithstanding, no Agent shall
have any powers, duties or responsibilities under this Credit Agreement or any of the other Loan
Documents, except in its capacity, as applicable, as Administrative Agent, a Lender or the Letter
of Credit Issuer hereunder.

     13.11. Administrative Agent May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to any Credit Party, Administrative Agent
(irrespective of whether the principal of any Loan or Letter of Credit Liability shall then be due
and payable as herein expressed or by declaration or otherwise and irrespective of whether
Administrative Agent shall have made any demand on Credit Parties) shall be entitled and empowered,
by intervention in such proceeding or otherwise:

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     (a) to file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Loans, Letter of Credit Liability and all other Obligations
that are owing and unpaid and to file such other documents as may be necessary or advisable
in order to have the claims of the Secured Parties (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Secured Parties and their
respective agents and counsel and all other amounts due the Secured Parties hereunder)
allowed in such judicial proceeding; and

     (b) to collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Secured Party to make such payments to
Administrative Agent and, in the event that Administrative Agent shall consent to the making of
such payments directly to the Secured Party, to pay to Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of Administrative Agent and its
agents and counsel, and any other amounts due the Administrative Agent hereunder.

     Nothing contained herein shall be deemed to authorize Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Secured Party any plan of reorganization,
arrangement, adjustment or composition affecting the Obligations or the rights of any Secured Party
or to authorize Administrative Agent to vote in respect of the claim of any Secured Party in any
such proceeding.

14. MISCELLANEOUS

     14.1. Amendments. Neither this Credit Agreement nor any other Loan Document, nor any of the
terms hereof or thereof, may be amended, waived, discharged or terminated, unless such amendment,
waiver, discharge, or termination is in writing and signed by Administrative Agent, based upon the
approval of the appropriate number of Lenders required hereunder, or such Lenders, on the one hand,
and the Credit Parties, on the other hand; and, if the rights or duties of an Agent are affected
thereby, by such Agent, provided that no such amendment, waiver, discharge, or termination shall,
without the consent of:

     (a) each Lender affected thereby:

     (i) reduce or increase the amount or alter the term of the Commitment of such
Lender, or alter the provisions relating to any fees (or any other payments) payable
to such Lender;

     (ii) extend the time for payment for the principal of or interest on the
Obligations, or fees or costs, or reduce the principal amount of the Obligations
(except as a result of the application of payments or prepayments), or reduce the
rate of interest borne by the Obligations (other than as a result of waiving the
applicability of the Default Rate), or otherwise affect the terms of payment of the
principal of or any interest on the Obligations or fees or costs hereunder;

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     (iii) release any Liens granted under the Collateral Documents, except as
otherwise contemplated herein or therein, and except in connection with the transfer
of interests in a Credit Party permitted hereunder or in any other Loan Documents;

     (iv) release the Guaranty granted pursuant to the Guaranty of Capital or limit
or otherwise modify the liability of Guarantor under any of the Loan Documents; and

     (v) extend the Stated Maturity Date or Maturity Date;

     (b) all Lenders:

(i) permit the cancellation, excuse or reduction of the Capital Commitment
of any Included Investor or Designated Investor;

(ii) amend the definitions of (A) “Applicable Requirement”; (B) “Available
Loan Amount”; (C) “Eligible Available Contributions of the Designated
Investors”; (D) “Eligible Available Contributions of the Included
Investors”; (E) “Included Investor”; (F) “Inclusion Percentage”; (G)
“Designated Investor”; (H) “Unfunded Capital Commitment”; (I) “Borrowing
Base”; or (J) “Exclusion Event”;

(iii) change the percentages specified in the definition of Required Lenders
or any other provision hereof specifying the number or percentage of Lenders
which are required to amend, waive or modify any rights hereunder or
otherwise make any determination or grant any consent hereunder;

(iv) consent to the assignment or transfer by a Credit Party of any of their
respective rights and obligations under (or in respect of) the Loan
Documents; or

(v) amend, waive or in any way modify or suspend any provision requiring the
pro rata application of payments of the Obligations to Lenders; or

(vi) amend the terms of this Section 14.1.

     Administrative Agent agrees that it will promptly notify the Managing Agents (who will in turn
promptly notify the Lenders in its Lender Group) of any proposed modification or amendment to any
Loan Document, and deliver drafts of any such proposed modification or amendment to the Managing
Agents (who will in turn promptly deliver to the Lenders in its Lender Group), prior to the
effectiveness of such proposed modification or amendment. Notwithstanding the above: (A) no
provisions of Section 13 may be amended or modified without the consent of Administrative Agent;
(B) no provisions of Section 2.5 may be amended or modified without the consent of the Letter of
Credit Issuer; and (C) Sections 10 and 11 specify the requirements for waivers of the affirmative
covenants and negative covenants listed

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therein, and any amendment to any provision of Section 10 or Section 11 shall require the
consent of the Lenders that are specified therein as required for a waiver thereof. Any amendment,
waiver or consent not specifically addressed in this Section 14.1 or otherwise shall be subject to
the approval of Required Lenders.

     Notwithstanding the fact that the consent of all the Lenders is required in certain
circumstances as set forth above and in Section 11: (1) each Lender is entitled to vote as such
Lender sees fit on any reorganization plan that affects the Loans or the Letters of Credit, and
each Lender acknowledges that the provisions of Section 1126(c) of the Bankruptcy Code supersede
the unanimous consent provisions set forth herein; (2) the Required Lenders may consent to allow a
Borrower Party to use cash collateral in the context of a bankruptcy or insolvency proceeding; and
(3) Administrative Agent may, in its sole discretion, agree to the modification or waiver of any of
the other terms of this Credit Agreement or any other Loan Document or consent to any action or
failure to act by any Credit Party, if such modification, waiver, or consent is of an
administrative nature.

     If Administrative Agent shall request the consent of any Lender to any amendment, change,
waiver, discharge, termination, consent or exercise of rights covered by this Credit Agreement, and
not receive such consent or denial thereof in writing within ten (10) Business Days of the making
of such request by Administrative Agent, as the case may be, such Lender shall be deemed to have
given its consent to the request.

     14.2. Setoff. In addition to any rights and remedies of the Lenders provided by law, upon the
occurrence and during the continuance of any Event of Default, each Lender is authorized at any
time and from time to time, without prior notice to any Credit Party or any other obligor, any such
notice being waived by each Credit Party (on its own behalf and on behalf of each obligor) to the
fullest extent permitted by law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held by, and other indebtedness at any time owing
by, such Lender to or for the credit or the account of any Credit Party against any and all of the
Obligations owing to such Lender, now or hereafter existing, irrespective of whether or not
Administrative Agent or such Lender shall have made demand under this Credit Agreement or any other
Loan Document and although such Obligations may be contingent or unmatured. Each Lender agrees
promptly to notify the applicable Credit Party and Administrative Agent after any such setoff and
application made by such Lender; provided, however, that the failure to give such notice shall not
affect the validity of such set-off and application.

     14.3. Sharing of Payments. If, other than as expressly provided elsewhere herein, any Lender
shall obtain on account of the Loans made by it or the participations in Letters of Credit held by
it, any payment (whether voluntary, involuntary, through the exercise of any right of setoff, the
receipt of any proceeds from a Capital Call or the exercise of any remedies under any Collateral
Documents, or otherwise) in excess of its ratable share (or other share contemplated hereunder)
thereof, such Lender shall immediately: (a) notify Administrative Agent of such fact; and (b)
purchase from the other Lenders such participations in the Loans made by them and/or such
subparticipations in the participations in Letters of Credit held by them, as the case may be, as
shall be necessary to cause such purchasing Lender to share the excess payment in respect of such
of Loans or such participations, as the case may be, pro rata with each of them; provided,

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however, that if all or any portion of such excess payment is thereafter recovered from the
purchasing Lender, such purchase shall to that extent be rescinded and each other Lender shall
repay to the purchasing Lender the purchase price paid therefor, together with an amount equal to
such paying Lender’s ratable share (according to the proportion of: (i) the amount that such paying
Lender’s required repayment bears to; (ii) the total amount so recovered from the purchasing
Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the
total amount so recovered. Each Credit Party agrees that any Lender so purchasing a participation
from another Lender may, to the fullest extent permitted by law, exercise all its rights of payment
(including the right of setoff, but subject to Section 14.2) with respect to such participation as
fully as if such Lender were the direct creditor of the Credit Parties in the amount of such
participation. Administrative Agent will keep records (which shall be conclusive and binding in
the absence of manifest error) of participations purchased under this Section 14.3 and will in each
case notify the Lenders following any such purchases or repayments. Each Lender that purchases a
participation pursuant to this Section shall from and after such purchase have the right to give
all notices, requests, demands, directions and other communications under this Credit Agreement
with respect to the portion of the Obligations purchased to the same extent as though the
purchasing Lender were the original owner of the Obligations purchased. To the extent required to
implement the sharing of payments under this Section 14.3, each Lender hereby authorizes and
directs Administrative Agent to distribute any proceeds from Capital Calls or proceeds from the
exercise of remedies under the Collateral Documents held by Administrative Agent to Lenders
consistent with the terms of this Section 14.3.

     14.4. Payments Set Aside. To the extent that any Credit Party makes a payment to
Administrative Agent or any Lender, or Administrative Agent or any Lender exercises its right of
setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently
invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant
to any settlement entered into by Administrative Agent or such Lender in its discretion) to be
repaid to a trustee, receiver or any other party, in connection with any proceeding under any
Debtor Relief Law or otherwise, then: (a) to the extent of such recovery, the obligation or part
thereof originally intended to be satisfied shall be revived and continued in full force and effect
as if such payment had not been made or such setoff had not occurred, and (b) each Alternate Lender
severally agrees to pay to Administrative Agent upon demand its applicable share of any amount so
recovered from or repaid by Administrative Agent, plus interest thereon from the date of such
demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from
time to time in effect.

     14.5. Waiver. No failure to exercise, and no delay in exercising, on the part of
Administrative Agent or Lenders, any right hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise thereof preclude any other further exercise thereof or the exercise
of any other right. The rights and remedies of the Agents and Lenders hereunder and under the Loan
Documents shall be in addition to all other rights provided by law. No modification or waiver of
any provision of this Credit Agreement, the Notes or any of the other Loan Documents, nor consent
to departure therefrom, shall be effective unless in writing and no such consent or waiver shall
extend beyond the particular case and purpose involved. No notice or demand given in any case
shall constitute a waiver of the right to take other action in the same, similar or other instances
without such notice or demand. Subject to the terms of this Credit Agreement, including Section
14.1, Administrative Agent acting on behalf of all Lenders

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(pursuant to the terms hereof), and the Credit Parties may from time to time enter into
agreements amending or changing any provision of this Credit Agreement or the rights of Lenders or
the Credit Parties hereunder, or may grant waivers or consents to a departure from the due
performance of the obligations of the Credit Parties hereunder, any such agreement, waiver or
consent made with such written consent of Administrative Agent being effective to bind all Lenders.

     14.6. Payment of Expenses.

     (a) Borrower agrees to pay (within ten (10) days after the receipt of written notice
from Administrative Agent) all out-of-pocket costs and expenses of Administrative Agent
(including without limitation Attorney Costs) reasonably incurred by it in connection with
the negotiation, preparation, execution and delivery of this Credit Agreement, the Notes,
and the other Loan Documents and any and all amendments, modifications and supplements
thereof or thereto, and, subject to no gross negligence or willful misconduct on the part of
the Lenders, all out-of-pocket costs and expenses of Administrative Agent and the Secured
Parties (including, without limitation, the Attorney Costs of Administrative Agent’s and the
Secured Parties’ legal counsel) reasonably incurred by them in connection with the
preservation, enforcement and modification of, and Administrative Agent’s and the Secured
Parties’ rights under, this Credit Agreement, the Notes, and the other Loan Documents.

     (b) Borrower agrees to indemnify Administrative Agent and each of Lenders and their
respective directors, officers, employees, attorneys and agents (each such Person, including
without limitation Administrative Agent and each of the Secured Parties, being called an
“Indemnitee”) against, and to hold each Indemnitee harmless from, any and all losses,
claims, actions, judgments, suits, disbursements, penalties, damages (other than
consequential damages), liabilities and related expenses, including reasonable counsel fees
and expenses, incurred by or asserted against any Indemnitee arising out of, in any way
connected with, or as a result of:

     (i) the execution and delivery of this Credit Agreement or any other Loan
Document or any agreement or instrument contemplated thereby,

     (ii) the use or misuse of the proceeds of the Loans,

     (iii) the fraudulent actions or misrepresentations of any Credit Party or its
Affiliates in connection with the transactions contemplated by this Credit Agreement
and the other Loan Documents,

     (iv) any claim, litigation, investigation or proceeding relating to any of the
foregoing, whether or not any Indemnitee is a party thereto, or

     (v) any claim, litigation, investigation or proceeding relating to the Investor
Documents, whether or not any Indemnitee is a party thereto;

provided, however, that such indemnity shall not, with respect to a particular Indemnitee, apply to
any such losses, claims, actions, judgments, suits, disbursements, penalties, damages,

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liabilities or related expenses to the extent arising from gross negligence or willful misconduct
of such Indemnitee.

     
(c) Borrower will indemnify Administrative Agent and each of the Lenders against any
costs or losses actually incurred as a result of any voluntary or involuntary prepayments of
any Loans on any date which is not a Settlement Date under the Credit Agreement and against
any increased costs or reduced return due to changes in applicable regulations regarding
withholding taxes, reserves, capital adequacy, or other similar regulations.

     
(d) In addition to and without limiting the foregoing, the Credit Parties hereby
indemnify and hold the Indemnitees harmless from and against, and agree to reimburse any
Indemnitee on demand for, and agree to defend the Indemnitees against, any and all
Environmental Damages (as hereinafter defined), incurred by Administrative Agent or a
Lender. Without Limitation, the Foregoing Indemnity Shall Apply to Each Indemnitee with
Respect to Environmental Damages Which in Whole or in Part Are Caused by or Arise out of the
Negligence of Such (Or Any Other) Indemnitee. However, Such Indemnity Shall Not Apply to a
Particular Indemnitee to the Extent That the Subject of the Indemnification Is Caused by or
Arises out of the Gross Negligence or Willful Misconduct of That Particular Indemnitee.

     The term “Environmental Damages” means all claims, demands, liabilities (including strict
liability), losses, damages (including consequential damages), causes of action, judgments,
penalties, fines, costs and expenses (including reasonable fees, costs and expenses of attorneys,
consultants, contractors, experts and laboratories), of any and every kind or character, contingent
or otherwise, matured or unmatured, known or unknown, direct or indirect, foreseeable or
unforeseeable, made, incurred, suffered or brought at any time and from time to time and arising in
whole or in part from:

     (i) The presence of any Hazardous Material on any Property, or any escape,
seepage, leakage, spillage, emission, release, discharge or disposal of any
Hazardous Material on or from any Property, or the migration or release or
threatened migration or release of any Hazardous Material to, from or through any
Property; or

     (ii) Any act, omission, event or circumstance existing or occurring in
connection with the handling, treatment, containment, removal, storage,
decontamination, clean-up, transport or disposal of any Hazardous Material by
Borrower, or any party for whose actions Borrower is liable or in connection with
any Property; or

     (iii) The breach of any representation, warranty, covenant or agreement
contained in Section 9.16 (to the extent such breach relates to Environmental
Requirements), Section 9.18 or Section 10.8 (to the extent such breach relates to
Environmental Requirements), or Section 11.8 of this Credit Agreement; or

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     (iv) Any violation of any Environmental Requirement, regardless of whether any
act, omission, event or circumstance giving rise to the violation constituted a
violation at the time of the occurrence or inception of such act, omission, event or
circumstance; or

     (v) Any Environmental Liability with respect to any Property, or the filing or
imposition of any Environmental Lien against any Property, because of, resulting
from, in connection with, or arising out of any of the matters referred to in
subsections (i) through (iv) preceding.

     (d) The provisions of this Section 14.6 shall remain operative and in full force and
effect regardless of the termination or expiration of the Availability Period, this Credit
Agreement, or any other Loan Document, the consummation of the transactions contemplated
hereby, the repayment of the Loans, the occurrence of the Maturity Date, the invalidity,
illegality, or unenforceability of any term or provision of this Credit Agreement or any
other Loan Document, or any investigation made by or on behalf of Lenders. All amounts due
under this Section 14.6 shall be payable promptly on written demand therefor.

     14.7. Notice. Any notice, demand, request or other communication which any party hereto may
be required or may desire to give hereunder shall be in writing (except where telephonic
instructions or notices are expressly authorized herein to be given) and shall be deemed to be
effective: (a) if by hand delivery, telecopy or other facsimile transmission, on the day and at
the time on which delivered to such party at the address or fax numbers specified below; (b) if by
mail, on the day which it is received after being deposited, postage prepaid, in the United States
registered or certified mail, return receipt requested, addressed to such party at the address
specified below; or (c) if by FedEx or other reputable express mail service, on the next Business
Day following the delivery to such express mail service, addressed to such party at the address set
forth below; or (d) if by telephone, on the day and at the time reciprocal communication (i.e.,
direct communication between two or more persons, which shall not include voice mail messages) with
one of the individuals named below occurs during a call to the telephone number or numbers
indicated for such party below:

     If to Borrower, Managing Member, Guarantor or Pledgor:

c/o Acadia Realty Trust

1311 Mamaroneck Avenue, Suite 260

White Plains, New York 10605

Attention: Robert Masters, Esq.

     If to Administrative Agent:

Bank of America, N.A., as Administrative Agent

NC1-027-19-01

214 North Tryon Street

Charlotte, North Carolina 28255

Attention:   Dan Hattendorf

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Telephone:  (704) 388-3113

Facsimile:    (704) 388-9211

     With a copy to:

Bank of America, N.A., as Administrative Agent

NC1-027-19-01

214 North Tryon Street

Charlotte, NC 28255

Attention:   Brian Williams

Telephone:  (704) 683-4747

Telecopy:    (704) 968-1215

     If to Lenders:

               At the address and numbers set forth on Schedule 14.7.

     Any party may change its address for purposes of this Credit Agreement by giving notice of
such change to the other parties pursuant to this Section 14.7. With respect to any notice
received by Administrative Agent from any Credit Party or any Investor not otherwise addressed
herein, Administrative Agent shall notify Lenders promptly of the receipt of such notice, and shall
provide copies thereof to Lenders. When determining the prior days notice required for any Loan
Notice, Request for Letter of Credit, or other notice to be provided by a Credit Party, any
Qualified Borrower or an Investor hereunder, the day the notice is delivered to Administrative
Agent (or such other applicable Person) shall not be counted, but the day of the related Borrowing,
issuance of Letter of Credit, or other relevant action shall be counted.

     14.8. GOVERNING LAW. PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW, THE
SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE CHOICE OF LAW PRINCIPLES THAT MIGHT OTHERWISE
APPLY, EXCEPT TO THE EXTENT THE LAWS OF ANOTHER JURISDICTION GOVERN THE CREATION, PERFECTION,
VALIDITY, OR ENFORCEMENT OF LIENS UNDER THE COLLATERAL DOCUMENTS, AND THE APPLICABLE FEDERAL LAWS
OF THE UNITED STATES OF AMERICA, SHALL GOVERN THE VALIDITY, CONSTRUCTION, ENFORCEMENT AND
INTERPRETATION OF THIS CREDIT AGREEMENT AND ALL OF THE OTHER LOAN DOCUMENTS.

     14.9. Choice of Forum; Consent to Service of Process and Jurisdiction; Waiver of Trial by
Jury. Any suit, action or proceeding against any Credit Party with respect to this Credit
Agreement, the Notes or the other Loan Documents or any judgment entered by any court in respect
thereof, may be brought in the courts of the State of New York, or in the United States Courts
located in the Borough of Manhattan in New York City, pursuant to Section 5-1402 of the New York
General Obligations Law, as Lenders in their sole discretion may elect and each Credit Party hereby
irrevocably submits to the non-exclusive jurisdiction of such courts for the purpose of any such
suit, action or proceeding. Each Credit Party hereby irrevocably consents to

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the service of process in any suit, action or proceeding in said court by the mailing thereof
by Administrative Agent by registered or certified mail, postage prepaid, to the applicable address
set forth in Section 14.7. Each Credit Party hereby irrevocably waives any objections which it may
now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or
relating to this Credit Agreement or the Notes brought in the courts located in the State of New
York, Borough of Manhattan in New York City, and hereby further irrevocably waives any claim that
any such suit, action or proceeding brought in any such court has been brought in an inconvenient
forum. EACH PARTY HERETO HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND,
ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED
OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN
DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HERETO HEREBY AGREES
AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
WITHOUT A JURY, AND THAT ANY PARTY TO THIS CREDIT AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A
COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO
THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY

     14.10. Invalid Provisions. If any provision of this Credit Agreement is held to be illegal,
invalid, or unenforceable under present or future laws effective during the term of this Credit
Agreement, such provision shall be fully severable and this Credit Agreement shall be construed and
enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this
Credit Agreement, and the remaining provisions of this Credit Agreement shall remain in full force
and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its
severance from this Credit Agreement, unless such continued effectiveness of this Credit Agreement,
as modified, would be contrary to the basic understandings and intentions of the parties as
expressed herein. If any provision of this Credit Agreement shall conflict with or be inconsistent
with any provision of any of the other Loan Documents, then the terms, conditions and provisions of
this Credit Agreement shall prevail.

     14.11. Entirety and Amendments. The Loan Documents embody the entire agreement between the
parties and supersede all prior agreements and understandings, if any, relating to the subject
matter hereof and thereof, and this Credit Agreement and the other Loan Documents may be amended
only by an instrument in writing executed by the parties hereto in accordance with the terms
hereof.

     14.12. Successors and Assigns.

     (a) The provisions of this Credit Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns permitted hereby,
except that neither the Credit Parties nor any Qualified Borrower may assign or otherwise
transfer any of their respective rights or obligations hereunder without the prior written
consent of each Lender and no Lender may assign or otherwise transfer any of its rights or
obligations hereunder except: (i) to an Eligible Assignee in accordance with the

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provisions of clause (b) of this Section 14.12; (ii) by way of participation in
accordance with the provisions of clause (f) of this Section 14.12; or (iii) by way of
pledge or assignment of a security interest subject to the restrictions of clause (h) of
this Section 14.12 (and any other attempted assignment or transfer by any party hereto shall
be null and void). Nothing in this Credit Agreement, expressed or implied, shall be
construed to confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby, Participants to the extent provided in clause (f)
of this Section 14.12, and, to the extent expressly contemplated hereby, the Indemnitees)
any legal or equitable right, remedy or claim under or by reason of this Credit Agreement.

     (b) Any Lender may at any time assign to one or more Eligible Assignees (each, an
“Assignee”) all or a portion of its rights and obligations under this Credit Agreement
(including all or a portion of its Commitment and the Loans (including for purposes of this
clause (b), participations in Letter of Credit Liability) at the time owing to it); provided
that: (i) except in the case of an assignment of the entire remaining amount of the
assigning Lender’s Commitment and the Loans at the time owing to it or in the case of an
assignment to a Lender or an Affiliate of a Lender or an Approved Fund with respect to a
Lender, the aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) subject to each such assignment, determined as of the date the
Assignment and Assumption Agreement with respect to such assignment is delivered to
Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption
Agreement, as of the Trade Date, shall not be less than $2,500,000, and, after such
assignment, no Lender shall hold a Commitment of less than $5,000,000; (ii) each partial
assignment shall be made as an assignment of a proportionate part of all the assigning
Lender’s rights and obligations under this Credit Agreement with respect to the Loans or the
Commitment assigned; (iii) any assignment of a Commitment must be approved by Administrative
Agent, the Letter of Credit Issuer, and, unless an Event of Default exists and is
continuing, Borrower (such approval, in each case, not to be unreasonably withheld or
delayed), unless the Person that is the proposed assignee is itself a Program Support
Provider or a Lender (whether or not the proposed assignee would otherwise qualify as an
Eligible Assignee); (iv) the parties to each assignment shall execute and deliver to
Administrative Agent an Assignment and Assumption Agreement, together with a processing and
recordation fee as set forth on Schedule 14.12(b) (except in the case of a transfer at the
demand of Borrower under Section 14.12 hereof, in which case either Borrower or the
transferee Lender shall pay such fee); and (v) each assignment made as a result of a demand
by Borrower under Section 14.12 hereof shall be arranged by Borrower after consultation with
Administrative Agent and shall be either an assignment of all of the rights and obligations
of the assigning Lender under this Credit Agreement or an assignment of a portion of such
rights and obligations made concurrently with another assignment or assignments that
together constitute an assignment of all of the rights and obligations of the assigning
Lender. Subject to acceptance and recording thereof by Administrative Agent pursuant to
clause (e) of this Section 14.12, from and after the effective date specified in each
Assignment and Assumption Agreement, the Eligible Assignee thereunder shall be a party to
this Credit Agreement and, to the extent of the interest assigned by such Assignment and
Assumption Agreement, have the rights and obligations of a Lender

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under this Credit Agreement, and the assigning Lender thereunder shall, to the extent of
the interest assigned by such Assignment and Assumption Agreement, be released from its
obligations under this Credit Agreement (and, in the case of an Assignment and Assumption
Agreement covering all of the assigning Lender’s rights and obligations under this Credit
Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to
the benefits of Sections 4.1, 4.4, 4.5 and 14.6 with respect to facts and circumstances
occurring prior to the effective date of such assignment). Upon request, each applicable
Borrower Party (at its expense) shall execute and deliver a Note to the Managing Agent of
the assignee, and the applicable existing Note or Notes shall be returned to the applicable
Borrower Party. Any assignment or transfer by a Lender of rights or obligations under this
Credit Agreement that does not comply with this subsection shall be treated for purposes of
this Credit Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with clause (f) of this Section 14.12.

     (c) Without limiting the foregoing, a Conduit Lender may, from time to time, with prior
or concurrent notice to Borrower and the Administrative Agent, in one transaction or a
series of transactions, assign all or a portion of its interest in the Principal Obligation
and its rights and obligations under this Agreement and any other Loan Documents to which it
is a party to a Conduit Assignee. Upon and to the extent of such assignment by the Conduit
Lender to a Conduit Assignee, (i) such Conduit Assignee shall be the owner of the assigned
portion of the Principal Obligation, (ii) the related administrator for such Conduit
Assignee will act as the Administrator for such Conduit Assignee, with all corresponding
rights and powers, express or implied, granted to the Administrator hereunder or under the
other Loan Documents, (iii) such Conduit Assignee (and any related commercial paper issuer,
if such Conduit Assignee does not itself issue commercial paper) and their respective
Program Support Provider(s) and other related parties shall have the benefit of all the
rights and protections provided to the Conduit Lender and its Program Support Provider(s)
herein and in the other Loan Documents (including any limitation on recourse against such
Conduit Assignee or related parties, any agreement not to file or join in the filing of a
petition to commence an insolvency proceeding against such Conduit Assignee, and the right
to assign to another Conduit Assignee as provided in this paragraph), (iv) such Conduit
Assignee shall assume all (or the assigned or assumed portion) of the Conduit Lender’s
obligations, if any, hereunder or any other Loan Document, and the Conduit Lender shall be
released from such obligations, in each case to the extent of such assignment, and the
obligations of the Conduit Lender and such Conduit Assignee shall be several and not joint,
(v) all distributions in respect of the Principal Obligation assigned shall be made to the
applicable Managing Agent, on behalf of the Conduit Lender and such Conduit Assignee on a
pro rata basis according to their respective interests, (vi) the definition of the term “CP
Rate” with respect to the portion of the Principal Obligation funded with commercial paper
issued by the Conduit Lender from time to time shall be determined in the manner set forth
in the definition of “CP Rate” applicable to the Conduit Lender on the basis of the interest
rate or discount applicable to commercial paper issued by such Conduit Assignee (or the
related commercial paper issuer, if such Conduit Assignee does not itself issue commercial
paper) rather than the Conduit Lender, (vii) the defined terms and other terms and
provisions of this Credit Agreement and the other Loan Documents shall be

100

 

interpreted in accordance with the foregoing, and (viii) if requested by the Managing
Agent or Administrator with respect to the Conduit Assignee, the parties will execute
and deliver such further agreements and documents and take such other actions as the
Managing Agent or such Administrator may reasonably request to evidence and give effect to
the foregoing. No assignment by the Conduit Lender to a Conduit Assignee of all or any
portion of its interest in the Principal Obligation shall in any way diminish the related
Alternate Lenders’ obligation under Section 2.3 to fund any Loan not funded by the Conduit
Lender or such Conduit Assignee or to acquire from the Conduit Lender or such Conduit
Assignee all or any portion of its interest in the Principal Obligation pursuant to Section
7.1.

     (d) In the event that a Conduit Lender makes an assignment to a Conduit Assignee in
accordance with clause (c) above, the related Alternate Lenders: (i) if requested by the
related Administrator, shall terminate their participation in the applicable Program Support
Agreement to the extent of such assignment, (ii) if requested by the related Administrator,
shall execute (either directly or through a participation agreement, as determined by such
Administrator) the program support agreement related to such Conduit Assignee, to the extent
of such assignment, the terms of which shall be substantially similar to those of the
participation or other agreement entered into by such Alternate Lender with respect to the
applicable Program Support Agreement (or which shall be otherwise reasonably satisfactory to
the related Administrator), (iii) if requested by such Conduit Lender, shall enter into such
agreements as requested by the Conduit Lender pursuant to which they shall be obligated to
provide funding to such Conduit Assignee on the same terms and conditions as is provided for
in this Agreement in respect of such Conduit Lender (or which agreements shall be otherwise
reasonably satisfactory to Borrower and such Conduit Lender), and (iv) shall take such
actions as the Administrator shall reasonably request in connection therewith.

     (e) Administrative Agent, acting solely for this purpose as an agent of the Credit
Parties, shall maintain at Administrative Agent’s Office a copy of each Assignment and
Assumption Agreement delivered to and accepted by it and a register for the recordation of
the names and addresses of the Lenders, and the Commitments of, and principal amounts of the
Loans and Letter of Credit Liability owing to, each Lender pursuant to the terms hereof from
time to time (the “Register”). The entries in the Register shall be conclusive, and each
Credit Party, Administrative Agent, Agents and the Lenders may treat each Person whose name
is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all
purposes of this Credit Agreement. The Register shall be available for inspection and
copying by the Credit Parties, any Agent and any Lender, at any reasonable time and from
time to time upon reasonable prior notice. Upon the consummation of any assignment in
accordance with this Section 14.12, Schedule 14.12(b) shall automatically be deemed amended
(to the extent required) by Administrative Agent to reflect the name and address of the
applicable Assignee.

     (f) Any Lender may at any time, without the consent of, or notice to, any Credit Party
or Administrative Agent, sell participations to any Person (other than a natural person or
any Credit Party or any Affiliate thereof) (each, a “Participant”) in all or a portion of
such Lender’s rights and/or obligations under this Credit Agreement

101

 

(including all or a portion of its Commitment and/or the Loans (including such Lender’s participations in Letter of Credit Liability) owing to it); provided that: (i) such
Lender’s obligations under this Credit Agreement shall remain unchanged; (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance of such
obligations; and (iii) each Credit Party, Administrative Agent and the other Lenders shall
continue to deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Credit Agreement. Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall retain the
sole right to enforce this Credit Agreement and to approve any amendment, modification or
waiver of any provision of this Credit Agreement; provided that such agreement or instrument
may provide that such Lender will not, without the consent of the Participant, agree to any
amendment, waiver or other modification described in Section 14.1(a), 14.1(b)(ii) or
14.1(b)(v) that directly affects such Participant. Subject to clause (g) of this Section
14.12, each Borrower Party agrees that each Participant shall be entitled to the benefits of
Sections 4.1, 4.4 and 4.5 to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to clause (b) of this Section 14.12. To the extent
permitted by law, each Participant also shall be entitled to the benefits of the right of
setoff under application law as though it were a Lender, provided such Participant agrees to
be subject to Sections 14.2 and 14.3 as though it were a Lender.

     (g) A Participant shall not be entitled to receive any greater payment under Sections
4.1 or 4.4 than the applicable Lender would have been entitled to receive with respect to
the participation sold to such Participant, unless the sale of the participation to such
Participant is made with Borrower’s prior written consent.

     (h) Any Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Credit Agreement (including under its Note, if any) to
secure obligations of such Lender, including any pledge or assignment to secure obligations
to a Federal Reserve Bank; provided that no such pledge or assignment shall release such
Lender from any of its obligations hereunder or substitute any such pledgee or assignee for
such Lender as a party hereto.

     (i) Notwithstanding anything to the contrary contained herein, if at any time Bank of
America assigns all of its Commitment and Loans pursuant to clause (b) above, Bank of
America may, upon thirty (30) days’ notice to the Borrower Parties and the Lenders, resign
as Administrative Agent and Letter of Credit Issuer. In the event of any such resignation,
Lenders shall appoint from among the Lenders a successor Administrative Agent and Letter of
Credit Issuer hereunder (subject, except when an Event of Default exists, to the consent of
Borrower, not to be unreasonably withheld); provided, however, that no failure by Lenders to
appoint any such successor shall affect the resignation of Bank of America as Letter of
Credit Issuer and Administrative Agent. If Bank of America resigns as Letter of Credit
Issuer and Administrative Agent, it shall retain all the rights and obligations of the
Letter of Credit Issuer hereunder with respect to all Letters of Credit outstanding as of
the effective date of its resignation as Letter of Credit Issuer and all Letter of Credit
Liability with respect thereto (including the right to

102

 

require the Lenders to fund payment of any amount drawn under a Letter of Credit issued by Bank of America as Letter of Credit
Issuer hereunder.

     14.13. Lender Default. If for any reason any Lender shall fail or refuse to abide by its
obligations hereunder, and such Lender shall not have cured such failure or refusal within five (5)
Business Days of its occurrence (a “Lender Default”), then, in addition to the rights and remedies
that may be available to Administrative Agent, Lenders, or any Borrower Party at law or in equity,
such Lender’s right to vote on matters related to this Credit Agreement, and to participate in the
administration of the Loans, the Letters of Credit, and this Credit Agreement, shall be suspended.
Administrative Agent shall have the right, but not the obligation, in its sole discretion, to
acquire at par all of such Lender’s Commitment, including its Pro Rata Share in the Obligations
under this Credit Agreement. In the event that Administrative Agent does not exercise its right to
so acquire all of such Lender’s interests, then each Lender that is not a Defaulting Alternate
Lender (each, a “Current Party”) shall then, thereupon, have the right, but not the obligation, in
its sole discretion to acquire at par (or if more than one Current Party exercises such right, each
Current Party shall have the right to acquire, pro rata) such Lender’s Commitment, including its
Pro Rata Share in the outstanding Obligations under this Credit Agreement.

     14.14. Replacement of Lender. Following a demand by an Alternate Lender for payment of any
amounts under Section 4.1 or 4.3, or if any Alternate Lender is a Defaulting Alternate Lender (in
either case, an “Affected Lender”), Borrower may elect to replace such Affected Lender as an
Alternate Lender party to this Credit Agreement with an Eligible Assignee procured by Borrower,
provided that no Potential Default nor Event of Default shall have occurred and be continuing at
the time of such replacement, and provided further that, concurrently with such replacement such
Eligible Assignee shall agree to purchase for cash the Loans and other Obligations due to the
Affected Lender pursuant to an Assignment and Assumption Agreement and to become an Alternate
Lender for all purposes under this Credit Agreement and to assume all obligations of the Affected
Lender to be terminated as of such date. Any such Affected Lender shall assign its rights and
interests hereunder, such assignment to be effected in compliance with the requirements of Section
14.12(b) hereof. In the event that such an assignment occurs, the Eligible Assignee (i) if
requested by the applicable Administrator, shall execute (either directly or through a
participation agreement, as determined by the Administrator) a Program Support Agreement related to
the applicable Conduit Lender, to the extent of such assignment, the terms of which shall be
substantially similar to those of the participation or other agreement by the assigning Alternate
Lender with respect to the applicable Program Support Agreement (or which shall be otherwise
reasonably satisfactory to the applicable Administrator), and (ii) shall take such actions as the
Agents shall reasonably request in connection therewith.

     14.15. Maximum Interest. Regardless of any provision contained in any of the Loan Documents,
Lenders shall never be entitled to receive, collect or apply as interest on the Obligations any
amount in excess of the Maximum Rate, and, in the event that Lenders ever receive, collect or apply
as interest any such excess, the amount which would be excessive interest shall be deemed to be a
partial prepayment of principal and treated hereunder as such; and, if the principal amount of the
Obligations is paid in full, any remaining excess shall forthwith be paid to the applicable
Borrower Party. In determining whether or not the interest

103

 

paid or payable under any specific contingency exceeds the Maximum Rate, each Borrower Party and Lenders shall, to the maximum extent
permitted under applicable law: (a) characterize any nonprincipal payment as an expense, fee or
premium rather than as interest; (b) exclude voluntary prepayments and the effects thereof; and (c) amortize, prorate, allocate and spread,
in equal parts, the total amount of interest throughout the entire contemplated term of the
Obligations so that the interest rate does not exceed the Maximum Rate; provided that, if the
Obligations are paid and performed in full prior to the end of the full contemplated term thereof,
and if the interest received for the actual period of existence thereof exceeds the Maximum Rate,
Lenders shall refund to the applicable Borrower Party the amount of such excess or credit the
amount of such excess against the principal amount of the Obligations and, in such event, Lenders
shall not be subject to any penalties provided by any laws for contracting for, charging, taking,
reserving or receiving interest in excess of the Maximum Rate. As used herein, the term
“applicable law” shall mean the law in effect as of the date hereof; provided, however, that in the
event there is a change in the law which results in a higher permissible rate of interest, then the
Loan Documents shall be governed by such new law as of its effective date.

     14.16. Headings. Section headings are for convenience of reference only and shall in no way
affect the interpretation of this Credit Agreement.

     14.17. Survival. All representations and warranties made by the Credit Parties and the
Qualified Borrowers herein shall survive delivery of the Notes, the making of the Loans and the
issuance of the Letters of Credit.

     14.18. Integration. This Credit Agreement is intended by the parties as the final, complete
and exclusive statement of the transactions evidenced by this Credit Agreement. All prior or
contemporaneous promises, agreements and understandings, whether oral or written, are deemed to be
superseded by this Credit Agreement, and no party is relying on any promise, agreement or
understanding not set forth in this Credit Agreement.

     14.19. Limited Liability of Investors. Except with respect to any expenses and losses arising
from any Credit Party’s intentional misrepresentation hereunder, fraud or willful misapplication of
proceeds in contravention of this Credit Agreement, for which there shall be full recourse to such
Credit Party, none of the Investors, including the Managing Member, shall have any personal,
partnership, corporate or trust liability for the payment or performance of the Obligations.
Nothing contained in this Section 14.19 or in any of the other provisions of the Loan Documents
shall be construed to limit, restrict, or impede the obligations, the liabilities, and indebtedness
of Borrower, or of any Investor to make its Capital Contributions to Borrower, Managing Member,
Guarantor or Pledgor, in accordance with the terms of the Operating Agreement, Partnership
Agreement or the Stockholders Agreement, as applicable, or pursuant to the terms of such Investor’s
Investor Letter. Nothing contained in this Section 14.19 shall be deemed to expressly or
implicitly limit or modify the liability of each Qualified Borrower to Lenders under the Qualified
Borrower Notes; provided, however, that such liability shall not extend beyond such Qualified
Borrower and its properties and assets. Notwithstanding anything contained in this Section 14.19,
the payment and performance of the Obligations shall be fully recourse to each Borrower Party and
the payment and performance of the Guaranteed Obligations shall be fully recourse to the Guarantor
and, in each case, their properties and assets.

104

 

     14.20. Confidentiality. Administrative Agent, each Managing Agent, each Administrator and
each Lender agrees to maintain the confidentiality of the Information (as defined below), except
that Information may be disclosed: (a) to its and its Affiliates’ respective partners, directors, officers, employees, representatives, advisors and agents, including
accountants, legal counsel and other advisors (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such Information and instructed
to keep such Information confidential and to use such Information only in connection with this
facility); (b) to the extent requested by any regulatory authority; (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process; (d) to any other party
to this Credit Agreement; (e) in connection with the exercise of any remedies hereunder or any
suit, action or proceeding relating to this Credit Agreement or the enforcement of rights
hereunder; (f) subject to an agreement containing provisions substantially the same as those of
this Section 13.21, to: (i) any Eligible Assignee of or Participant in, or any prospective Eligible
Assignee of or Participant in, any of its rights or obligations under this Credit Agreement; or
(ii) any direct or indirect contractual counterparty or prospective counterparty (or such
contractual counterparty’s or prospective counterparty’s professional advisor) to any credit
derivative transaction relating to obligations of the Borrower Parties; (g) with the consent of the
applicable Borrower; (h) to the extent such Information: (x) becomes publicly available other than
as a result of a breach of this Section 14.20 or (y) becomes available to Administrative Agent, any
Managing Agent, any Administrator or any Lender on a nonconfidential basis from a source other than
a Credit Party; or (i) to the National Association of Insurance Commissioners or any other similar
organization or any rating agency, Commercial Paper dealer, provider of credit enhancement or
liquidity to such Conduit Lender or any Person providing financing to, or holding equity interest
in, such Conduit Lender, any Program Support Provider, any Conduit Collateral Agent and to any
officers, directors, employees, outside accountants and attorneys of any of the foregoing, provided
that such recipient has been advised of the confidential nature of such information and agrees to
be bound by the provisions of this Section 14.20. For the purposes of this Section 14.20,
“Information” means all information received from any Credit Party, other than any such information
that is available to Administrative Agent, any Managing Agent, any Administrator or any Lender on a
nonconfidential basis prior to disclosure by such Person; provided that, in the case of information
received from any Credit Party after the date hereof, such information is clearly identified in
writing at the time of delivery as confidential. Any Person required to maintain the
confidentiality of Information as provided in this Section 14.20 shall be considered to have
complied with its obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to its own
confidential information. Administrative Agent, Arranger, each Lender and Agent agrees not to
disclose the identity of the Investors in connection with any public disclosure of the transaction
contemplated hereby, such as in tombstones or marketing materials.

     14.21. USA PATRIOT Act Notice. Each Lender and each Agent (for itself and not on behalf of
any Lender) hereby notifies the Credit Parties that pursuant to the requirements of the USA Patriot
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to
obtain, verify and record information that identifies the Credit Parties, which information
includes the name and address of the Credit Parties and other information that will allow such
Lender or Agent, as applicable, to identify the Credit Parties in accordance with the Patriot Act.

105

 

     14.22. Multiple Counterparts. This Credit Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same agreement, and any of
the parties hereto may execute this Credit Agreement by signing any such counterpart.

     14.23. No Bankruptcy Petition Against any Conduit Lender. Each Credit Party hereby covenants
and agrees that, prior to the date which is one year and one day after the payment in full of all
outstanding Commercial Paper or other rated indebtedness of a Conduit Lender, it will not institute
against, or encourage, cooperate with or join any other Person in instituting against, such Conduit
Lender any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the
law of the United States or any state of the United States. The provisions of this Section 14.23
shall survive the termination of this Credit Agreement.

     14.24. No Recourse Against any Conduit Lender. Notwithstanding anything to the contrary
contained in this Credit Agreement, the obligations of each Conduit Lender under this Credit
Agreement and all other Loan Documents are solely the corporate obligations of such Conduit Lender
and shall be payable solely to the extent of funds received by such Conduit Lender from the Credit
Parties in accordance herewith or from any party to any Loan Document in accordance with the terms
thereof in excess of funds necessary to pay such Conduit Lender’s matured and maturing Commercial
Paper or other rated indebtedness and, to the extent funds are not available to pay such
obligations, the claims relating thereto shall not constitute a claim against such Conduit Lender
but shall continue to accrue. The payment of any claim (as defined in Section 101 of Title 11 of
the Bankruptcy Code) of any party to this Credit Agreement or any other Loan Document against a
Conduit Lender shall be subordinated to the payment in full of all of such Conduit Lender’s
Commercial Paper and other rated indebtedness. No recourse under or with respect to any
obligation, covenant or agreement of any Conduit Lender as contained in this Credit Agreement or
any other agreement, instrument or document entered into by it pursuant hereto or in connection
herewith shall be had against any manager or administrator of such Person or any incorporator,
stockholder, member, officer, employee or director of such Person or of any such manager or
administrator, as such, by the enforcement of any assessment or by any legal or equitable
proceeding, by virtue of any statute or otherwise.

Remainder of Page Intentionally Left Blank

Signature Pages Follow.

106

 

     IN WITNESS WHEREOF, the parties hereto have caused this Credit Agreement to be duly executed
as of the day and year first above written.

	 	 	 	 	 
	 	BORROWER:

ACADIA STRATEGIC OPPORTUNITY FUND III LLC,

a Delaware limited liability company

 	 
	 	By:  	 
 	 
	 	 	Name:  	Robert Masters 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 	 	 
	 	MANAGING MEMBER:

ACADIA REALTY ACQUISITION III LLC,

a Delaware limited liability company

 	 
	 	By:  	 
 	 
	 	 	Name:  	Robert Masters 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 	 	 
	 	PLEDGOR:

ACADIA INVESTORS III, INC.,

a Maryland corporation

 	 
	 	By:  	 
 	 
	 	 	Name:  	Robert Masters 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 	 	 
	 	GUARANTOR:

ACADIA REALTY LIMITED PARTNERSHIP,

a Delaware limited partnership

 	 
	 	By:  	ACADIA REALTY TRUST, 
its General Partner
 	 
	 	 	 
	 	By:  	 
 	 
	 	 	Name:  	Robert Masters 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Revolving Credit Agreement

 

 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT:

BANK OF AMERICA, N.A., as

Administrative Agent

 	 
	 	By:  	 
 	 
	 	 	Name:  	 	 
	 	 	Title 	 
	 

Signature Page to Revolving Credit Agreement

 

 

	 	 	 	 	 
	 	MANAGING AGENT AND ADMINISTRATOR:

BANK OF AMERICA, N.A., as Managing Agent for the YC
SUSI Lender Group and as Administrator for YC SUSI
Trust

 	 
	 	By:  	 
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Revolving Credit Agreement

 

 

	 	 	 	 	 
	 	LENDERS:

BANK OF AMERICA, N.A.,

as an Alternate Lender for the YC SUSI Lender Group

 	 
	 	By:  	 
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Revolving Credit Agreement

 

 

	 	 	 	 	 
	 	YC SUSI TRUST, as Conduit Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Revolving Credit Agreement

 

 

Schedule 1.1

Commitments

	 	 	 
	Alternate Lender	 	Commitment
	 
	 	 
	Bank of America, N.A.
	 	$75,000,000

Schedule to Revolving Credit Agreement

 

 

Schedule 14.7

Addresses

Bank of America

Bank of America, N.A., as Administrative Agent

NC1-027-19-01

214 North Tryon Street

Charlotte, North Carolina 28255

Attention:   Dan Hattendorf

Telephone:  (704) 388-3113

Facsimile:     (704) 388-9211

With copy to:

Bank of America, N.A., as Administrative Agent

NC1-027-19-01

214 North Tryon Street

Charlotte, NC 28255

Attention:    Brian Williams

Telephone:  (704) 683-4747

Telecopy:    (704) 968-1215

YC SUSI Trust

YC SUSI Trust

c/o Bank of America, N.A.

NC1-027-19-01

214 North Tryon Street

Charlotte, North Carolina 28255

Attention:    Dan Hattendorf

Telephone:  (704) 388-3113

Facsimile:    (704) 388-9211

With copy to:

YC SUSI Trust

c/o Bank of America, N.A.

NC1-027-19-01

214 North Tryon Street

Charlotte, NC 28255

Attention:    Brian Williams

Telephone:  (704) 683-4747

Telecopy:    (704) 968-1215

Schedule to Revolving Credit Agreement

 

 

Schedule 14.12(b)

Processing and Recordation Fees

The Administrative Agent will charge the applicable Lenders a processing and recordation fee (an
“Assignment Fee”) in the amount of $2,500 for each assignment; provided, however, that in the event
of two or more concurrent assignments to members of the same Assignee Group (which may be effected
by a suballocation of an assigned amount among members of such Assignee Group) or two or more
concurrent assignments by members of the same Assignee Group to a single Eligible Assignee (or to
an Eligible Assignee and members of its Assignee Group), the Assignment Fee will be $2,500 plus the
amount set forth below:

	 	 	 	 	 
	Transaction	 	Assignment Fee
	 
	 	 	 	 
	First four
concurrent assignments or suballocations to members of an Assignee Group (or from members of an
Assignee Group, as applicable)
	 	 	-0-	 
	
	 	 	 	 
	 
	 	 	 	 
	Each additional
concurrent assignment or suballocation to a member of such Assignee Group (or from a member of such
Assignee Group, as applicable)
	 	$	500	 
	
	 	 	 	 

Schedule to Revolving Credit Agreement

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