Document:

Exhibit
10.17

CW Loan
No. 06-2749/7599

Flextronics

PROMISSORY NOTE

(Fixed
Rate)

	
  $14,250,000.00

  	
   

  	
  October       ,
  2006

  

 

FOR
VALUE RECEIVED, WESTCORE LUNDY, LLC, a Delaware limited liability company (“Maker”),
promises to pay to the order of COUNTRYWIDE COMMERCIAL REAL ESTATE FINANCE,
INC., a California corporation (together with any subsequent holder of this
Note, and their respective successors and assigns, “Holder”) at such
address as Holder may from time to time designate in writing, the principal sum
of FOURTEEN MILLION TWO HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS
($14,250,000.00) together with interest thereon and all other sums due and/or
payable under any Loan Document; such principal and other sums to be calculated
and payable as provided in this Note. 
This Note is being executed and delivered in connection with, and is
entitled to the rights and benefits of, that certain Loan Agreement of even
date herewith between Maker and Holder (as amended, modified and supplemented
and in effect from time to time, the “Loan Agreement”).  Capitalized terms used herein without
definition shall have the meanings ascribed to such terms in the Loan
Agreement.

Maker
agrees to pay the principal sum of this Note together with interest thereon and
all other sums due and/or payable under any Loan Document in accordance with
the following terms and conditions:

1.             Interest
Rate.  Interest shall
accrue on the Principal Indebtedness at five and 60/100 percent (5.60%) per
annum (the “Interest Rate”) commencing on the date of this Note.  Interest shall be computed on the actual
number of days elapsed based on a 360-day year.

2.             Payments.  Maker shall make the following payments to
Holder:

(a)           On
the date hereof (unless the date hereof is the same calendar day as a Payment
Date), a payment of interest only for the first Interest Accrual Period

(b)           On
December 8, 2006 (the “First Payment Date”) and on the same
calendar day of each calendar month (each, a “Payment Date”) through and
including the Payment Date occurring in October, 2016, Maker shall pay to
Holder a monthly payment of interest only based on the Interest Rate and the
outstanding Principal Indebtedness.

(c)           The
entire outstanding Indebtedness shall be due and payable on the Payment Date
occurring in November, 2016 (the “Maturity Date”), or such earlier date
resulting from acceleration of the Indebtedness by Holder.

(d)           “Interest
Accrual Period” means, initially, the period commencing on the Closing Date
and continuing to and including the calendar day preceding the next Payment
Date, and thereafter each period running from and including a Payment Date to
and including the calendar day preceding the next Payment Date during the term
of the Loan.

 

(e)           For
purposes of making payments hereunder, but not for purposes of calculating
Interest Accrual Periods, if the Payment Date of a given month shall not be a
Business Day, then the Payment Date for such month shall be the succeeding
Business Day.

3.             Event of
Default; Default Interest; Late Charge.  Upon the occurrence and during the
continuance of an Event of Default, the Indebtedness shall (a) become due and
payable as provided in Article 8 of the Loan Agreement, and (b) bear interest
at a per annum interest rate equal to the lesser of (i) the Maximum Amount
(as defined in Section 8), and (ii) the Interest Rate plus five
percent (5%) (the “Default Rate”). 
If Maker fails to pay any interest due under the Loan Documents on the
date when the same is due, Maker shall pay to Holder upon demand a late charge
on such sum in an amount equal to the lesser of (i) five percent (5%) of such
unpaid amount, and (ii) the maximum late charge permitted to be charged under
the laws of the State of where the Property is located (a “Late Charge”).  Maker will also pay to Holder upon demand,
after an Event of Default occurs, in addition to the amount due and any Late
Charges, all reasonable costs of collecting, securing, or attempting to collect
or secure this Note or any other Loan Document, including, without limitation,
court costs and reasonable attorneys’ fees (including reasonable attorneys’
fees on any appeal by either Maker or Holder and in any bankruptcy
proceedings).

4.             Prepayment;
Defeasance.

(a)           Maker shall not be
permitted at any time to prepay all or any part of the Loan except as expressly
provided in this Section 4. 
Provided no Event of Default then exists, and so long as Maker has given
Holder not less than fifteen (15) days’ prior written notice, Maker may
voluntarily prepay the Indebtedness in full but not in part only on or after
the date which is three (3) Payment Dates prior to the Maturity Date (the “Open
Period Date”) (and there shall be no Yield Maintenance Premium or penalty
assessed against Maker by reason of such prepayment).  If any such prepayment is not made on a
Payment Date, Maker shall also pay to Holder interest calculated at the
Interest Rate that would have accrued on such prepaid Principal Indebtedness
through the end of the Interest Accrual Period in which such prepayment occurs.

(b)           Provided that no Event
of Default then exists, after the earlier to occur of (i) two (2) years after “start-up day” (within the meaning of Section
860G(a)(9) of the Code) of any real estate mortgage investment conduit (as
defined under Section 860D of the Code) (a “REMIC”) that holds the Note,
and (ii) three (3) years after the Closing Date, Maker may cause the release of
the Property from the Liens of the Loan Documents upon satisfaction of the
following conditions:

(i)            Maker shall (A)
provide not less than fifteen (15) days’ prior written notice to Holder
specifying a Payment Date (the “Defeasance Release Date”) on which the
payments and deposits provided in clauses (B) through (E) below are to be made;
(B) pay all interest accrued and unpaid on the Indebtedness to and including
the Defeasance Release Date; (C) pay all reasonable fees and expenses
associated with the defeasance of the Loan (including, without limitation, fees
of Rating Agencies and accountants, and attorneys) and all other sums then due
and payable under the Loan Documents; (D) deliver to Holder, “government securities” as used in section
2(a)(16) of the Investment Company Act of 1940, as amended (15 U.S.C. 80a-1)
and which are not subject to prepayment, call or early redemption (“U.S.
Obligations”) (1)

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having maturity dates or being redeemable on or prior
to, but as close as possible to, the Business Day immediately preceding each
successive scheduled Payment Date (after the Defeasance Release Date) through
and including the Open Period Date, (2) in amounts sufficient to pay
(y) all scheduled principal and interest payments on this Note on each
Payment Date through and including the Open Period Date, and (z) the
Principal Indebtedness as of the Open Period Date, and (3) payable directly to
Holder; and (E) deliver to Holder (1) a security agreement, in form and
substance satisfactory to Holder, creating a first priority perfected Lien on
the deposits required pursuant to this Section 4(b) and the U.S.
Obligations purchased in accordance with this Section 4(b) (a “Security
Agreement”), (2) for execution by Holder, a release of the Property from
the Lien of the Mortgage in a form appropriate for the jurisdiction in which
the Property is located, (3) a written certification that the requirements set
forth in this Section 4(b) have been satisfied, (4) an opinion of Maker’s
counsel in form and substance satisfactory to Holder stating, among other
things, that (x) the U.S. Obligations have been duly and validly assigned and
delivered to Holder and Holder has a first priority perfected security interest
in and Lien on the deposits required pursuant to this Section 4(b) and a
first priority perfected security interest in and Lien on the U.S. Obligations
purchased pursuant hereto and the proceeds thereof, (y) the defeasance
will not adversely affect the status of any REMIC formed in connection with a
Secondary Market Transaction, and (z) in the event of a bankruptcy proceeding or similar occurrence with
respect to Maker, none of the U.S. Obligations purchased pursuant hereto nor
any proceeds thereof will be property of Maker’s estate under Section 541 of
the Bankruptcy Code or any similar statute and the grant of security interest
therein to Holder shall not constitute an avoidable preference under Section
547 of the Bankruptcy Code or applicable state law, and (5) such other
certificates, documents or instruments as Holder may request including, without
limitation, (y) written confirmation from the relevant Rating Agencies that
such defeasance will not cause any Rating Agency to withdraw, qualify or
downgrade the then-applicable rating on any security issued in connection with
any Secondary Market Transaction, and (z) a certificate from a certified public
accountant reasonably acceptable to Holder certifying that the amounts of the
U.S. Obligations satisfy all of the requirements of this Note.  In connection with the foregoing, Maker
appoints Holder as Maker’s agent for the purpose of applying the amounts
delivered pursuant to this Section 4(b) to purchase U.S. Obligations.

(ii)           If any notice of
defeasance is given, Maker shall be required to defease the Loan on the
Defeasance Release Date (unless such notice is revoked in writing by Maker
prior to the date specified therein in which event Maker shall immediately
reimburse Holder for any reasonable costs incurred by Holder in connection with
Maker’s giving of such notice and revocation).

(iii)          In connection with a
defeasance of the Loan, Maker may assign to such other entity or entities
established or designated by Maker and approved by Holder in its reasonable
discretion (the “Successor Obligor”) all of Maker’s obligations under
this Note, the other Loan Documents and the Security Agreement together with
the pledged U.S. Obligations.  The
Successor Obligor shall assume, in a writing or writings reasonably
satisfactory to Holder, all of Maker’s obligations under this Note, the other
Loan Documents and the Security Agreement and, upon such assignment Maker
shall, except as set forth herein, be relieved of its obligations hereunder.  If a Successor Obligor assumes all or any
part of Maker’s obligations, Holder may require as a condition to such
defeasance, such additional legal opinions from Maker’s counsel as Holder
reasonably deems necessary to confirm the valid creation and

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authority of the Successor Obligor, the assignment and
assumption of the Loan, the Security Agreement and the pledged U.S. Obligations
between Maker and Successor Obligor, and the enforceability of the assignment
documents and of the Loan Documents as the obligation of Successor
Obligor.  Notwithstanding the foregoing
or anything else in this Section 4(b), nothing in this Section 4(b)
shall release Maker from any liability or obligation relating to any
environmental matters arising under Article 9 of the Loan Agreement.

(c)           Except as specifically
set forth in Sections 2, 4(a) and 4(b) above, or in Sections
7.6(c) or 12.28 of the Loan Agreement, upon any other repayment of
the Principal Indebtedness (including in connection with an acceleration of the
Loan), Maker shall pay to Holder on the date of such repayment, the amount
that, when added to the amount otherwise being repaid would be sufficient to
purchase U.S. Obligations that satisfy the requirements of Section 4(b)
above (the “Yield Maintenance Premium”); provided, however,
under no circumstances shall the Yield Maintenance Premium be less than
zero.  All Yield Maintenance Premium
payments hereunder shall be deemed earned by Holder upon the funding of the
Loan, shall be required whether payment is made by Maker or any other Person,
and may be included in any bid by Holder at a foreclosure sale.  Maker acknowledges that the provisions of
this Section 4 were independently bargained for and constitute a
specific material part of the consideration given by Maker to Holder for the
making of the Loan.

5.             Method
and Place of Payments; Application of Payments; Maker Obligations Absolute.

(a)           Except as otherwise
specifically provided herein, all payments under this Note and the other Loan
Documents shall be made to Holder not later than 2:00 p.m., New York City
time, on or before the date when due, and shall be made in lawful money of the
United States of America in federal or other immediately available funds to an
address specified to Maker by Holder in writing, and any funds received by
Holder after such time, for all purposes hereof, shall be deemed to have been
paid on the next succeeding Business Day.

(b)           All proceeds of
payment, including any payment or recovery on the Property, shall be applied to
the Indebtedness in such order and in such manner as Holder shall elect in
Holder’s discretion.

(c)           Except as specifically
set forth in any Loan Document, all sums payable by Maker under any Loan
Document shall be paid without notice, demand, counterclaim (other than
mandatory counterclaims), setoff, deduction or defense and without abatement,
suspension, deferment, diminution or reduction.

6.             Security.  The obligations of Maker under this Note are
secured by, among other things, the Mortgage and Liens of the other Loan
Documents granted in favor of Holder by Maker and/or encumbering or affecting
the Property.

7.             Waivers.  With respect to the amounts due pursuant to
this Note or any other Loan Document except as expressly provided in this Note
or the Loan Documents, Maker waives the following:  (a) all rights of exemption of property from
levy or sale under execution or other process for the collection of debts under
the Constitution or laws of the United States or any

 4
 

 

State thereof; (b) demand, presentment, protest,
notice of dishonor, notice of nonpayment, notice of protest, notice of intent
to accelerate, notice of acceleration, suit against any party, diligence in
collection of this Note and in the handling of securities at any time existing
in connection herewith, and all other requirements necessary to enforce this
Note except for notices required by Governmental Authorities and notices
required by the Loan Agreement; and (c) any further receipt by Holder or
acknowledgment by Holder of any collateral now or hereafter deposited as
security for the Loan.

8.             Usury
Savings Clause.  This Note
and the other Loan Documents are subject to the express condition that at no
time shall Maker be obligated or required to pay interest on the Indebtedness
at a rate which could subject Holder to either civil or criminal liability as a
result of being in excess of the maximum rate of interest designated by
applicable laws relating to payment of interest and usury (the “Maximum
Amount”).  If, by the terms of this
Note or the other Loan Documents, Maker is at any time required or obligated to
pay interest on the Indebtedness at a rate in excess of the Maximum Amount, the
Interest Rate shall be deemed to be immediately reduced to the Maximum Amount
and all previous payments in excess of the Maximum Amount shall be deemed to
have been payments in reduction of principal and not on account of the interest
due hereunder.  All sums paid or agreed
to be paid to Holder for the use, forbearance, or detention of the sums due
under the Loan, shall, to the extent permitted by applicable law, be amortized,
prorated, allocated, and spread throughout the full stated term of the Loan
until payment in full so that the rate or amount of interest on account of the
Loan does not exceed the Maximum Amount from time to time in effect and
applicable to the Loan for so long as the Loan is outstanding.

9.             Modifications;
Remedies Cumulative; Setoffs. 
Holder shall not by any act, delay, omission or otherwise be deemed to
have modified, amended, waived, extended, discharged or terminated any of its
rights or remedies, and no modification, amendment, waiver, extension,
discharge or termination of any kind shall be valid unless in writing and
signed by Holder and Maker.  All rights
and remedies of Holder under the terms of this Note and applicable statutes or
rules of law shall be cumulative, and may be exercised successively or
concurrently.  Maker agrees that there
are no defenses, equities or setoffs with respect to the obligations set forth
herein as of the date hereof, and to the extent any such defenses, equities, or
setoffs may exist, the same are hereby expressly released, forgiven, waived and
forever discharged.

10.           Severability. 
Wherever possible, each provision of this Note shall be interpreted in
such manner as to be effective and valid under applicable Legal Requirements,
but if any provision of this Note shall be prohibited by or invalid under
applicable Legal Requirements, such provision shall be ineffective to the
extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Note.

11.           Release.  Holder
may, at its option, release any Property given to secure the Indebtedness, and
no such release shall impair the obligations of Maker to Holder.

12.           Governing Law.  This Note and each of the other Loan
Documents shall be interpreted and enforced according to the laws of the state
where the Property is located (without giving effect to rules regarding
conflict of laws).

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13.           Venue.  Maker
hereby consents and submits to the exclusive jurisdiction and venue of any
state or federal court sitting in the county and state where the Property is
located with respect to any legal action or proceeding arising with respect to
the Loan Documents and waives all objections which it may have to such
jurisdiction and venue.  Nothing herein
shall, however, preclude or prevent Holder from bringing actions against Maker
in any other jurisdiction as may be necessary to enforce or realize upon the
security for the Loan provided in any of the Loan Documents.

14.           Waiver of
Jury Trial.  MAKER AND
HOLDER TO THE FULLEST EXTENT THAT THEY MAY LAWFULLY DO SO, WAIVE TRIAL BY JURY
IN ANY ACTION OR PROCEEDING, INCLUDING, WITHOUT LIMITATION, ANY TORT ACTION,
BROUGHT BY ANY PARTY HERETO WITH RESPECT TO THIS NOTE OR THE OTHER LOAN
DOCUMENTS.  EACH OF MAKER AND HOLDER
AGREES THAT THE OTHER MAY FILE A COPY OF THIS WAIVER WITH ANY COURT AS WRITTEN
EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED AGREEMENT OF THE OTHER
IRREVOCABLY TO WAIVE ITS RIGHT TO TRIAL BY JURY, AND THAT, TO THE FULLEST
EXTENT THAT IT MAY LAWFULLY DO SO, ANY DISPUTE OR CONTROVERSY WHATSOEVER
BETWEEN MAKER AND HOLDER SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT
JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

15.           Sales and
Assignments.  Holder may
assign, sell, securitize, participate, pledge and/or otherwise transfer all or
any portion of Holder’s right, title and interest in, to and under this Note
and/or the other Loan Documents in one or more transactions as set forth in the
Loan Agreement.

16.           Due on
Sale; Due on Encumbrance. 
Maker understands that in making the Loan, Holder is relying to a
material extent upon the business expertise and/or net worth of Maker and, if
Maker is also an entity, its partners, members, officers or principals and upon
the continuing interest which Maker or its partners, members, officers or
principals will have in the Property and in Maker, respectively, and that a
violation of Section 6.1 of the Loan Agreement may significantly and materially
alter or reduce Holder’s security for this Note.  Accordingly, in the event that a violation of
Section 6.1 of the Loan Agreement occurs, then the same shall be deemed to
increase the risk of Holder and Holder may then, or at any time thereafter,
declare the entire Indebtedness immediately due and payable.

17.           Exculpation.  Subject to the qualifications below, Holder
shall not enforce the liability and obligation of Maker to perform and observe
the obligations contained in the Loan Documents by any action or proceeding
wherein a money judgment shall be sought against Maker or its Affiliates,
principals, shareholders or members, except that Holder may bring a foreclosure
action, an action for specific performance or any other appropriate action or proceeding
to enable Holder to enforce and realize upon its interest and rights under the
Loan Documents, or in the Property, the Rents, the Insurance Proceeds, the
Condemnation Proceeds or any other collateral given to Holder pursuant to the
Loan Documents; provided, however,
that, except as specifically provided herein, any judgment in any such action
or proceeding shall be enforceable against Maker only to the extent of Maker’s
interest in the Property, the Rents, the Insurance Proceeds, the Condemnation
Proceeds and any other collateral given to Holder, and

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Holder agrees that it shall
not sue for, seek or demand any deficiency judgment against Maker in any such
action or proceeding under or by reason of or under or in connection with any
Loan Document.  The provisions of this Section
17 shall not, however, (a) constitute a waiver, release or impairment of
any obligation evidenced or secured by any Loan Document; (b) impair the right
of Holder to name Maker as a party defendant in any action or suit for foreclosure
and sale under the Mortgage; (c) affect the validity or enforceability of any
of the Loan Documents or any guaranty made in connection with the Loan or any
of the rights and remedies of the Holder thereunder; (d) impair the right of
Holder to obtain the appointment of a receiver; (e) impair the enforcement of
the Mortgage; (f) constitute a prohibition against Holder to seek a deficiency
judgment against Maker in order to fully realize the security granted by the
Mortgage or to commence any other appropriate action or proceeding in order for
Holder to exercise its remedies against all of the Property; or (g) constitute
a waiver of the right of Holder to enforce the liability and obligation of
Maker by money judgment or otherwise, to the extent of any Losses incurred by
Holder arising out of or in connection with the following (each, a “Recourse
Liability” and collectively, the “Recourse Liabilities”):

(i)            intentional fraud or intentional
misrepresentation by Maker or Guarantor in connection with the Loan;

(ii)           the intentional
material breach of any representation, warranty, covenant or indemnification
provision in any Loan Document by Maker or Guarantor concerning Environmental
Laws or Hazardous Substances, and any indemnification of Holder with respect
thereto contained in any Loan Document;

(iii)          any act of active
intentional physical waste by Maker or Guarantor of the Property or any portion
thereof, or, during the continuance of any Event of Default, the removal or
disposal of any portion of the Property by Maker or Guarantor;

(iv)          the intentional
misapplication, misappropriation, or conversion by Maker, Guarantor, or any
Affiliate of either of (A) any Insurance Proceeds paid by reason of any
Casualty, (B) any Condemnation Proceeds received in connection with any Taking
or (C) security deposits; or

(v)           the intentional
misapplication, misappropriation or conversion by Maker or Guarantor or any
Affiliate of any Rents during the continuance of any Event of Default.

Notwithstanding
anything to the contrary in this Note or any of the Loan Documents, (A) Holder
shall not be deemed to have waived any right which Holder may have under
Section 506(a), 506(b), 1111(b) or any other provisions of the U.S. Bankruptcy
Code to file a claim for the full amount of the Indebtedness or to require that
all collateral shall continue to secure all of the Indebtedness in accordance
with the Loan Documents, and (B) Holder’s agreement not to pursue personal
liability of Maker as set forth above SHALL BECOME NULL AND VOID and shall be
of no further force and effect, and the Indebtedness shall be fully recourse to
Maker in the event that one or more of the following occurs (each, a “Full
Recourse Event”):  (1) a voluntary
Event of Default occurs under Article 6 of the Loan Agreement; (2) Maker
files a voluntary petition under the U.S. Bankruptcy Code or any other federal
or state bankruptcy or insolvency law, or (3) Maker, Guarantor, or any
Affiliate, officer, director, or representative of Maker or Guarantor,

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files or acquiesces
in the filing of, or Maker acquiesces in the filing of, an involuntary petition
under the U.S. Bankruptcy Code or any other federal or state bankruptcy or
insolvency law against Maker.

18.           Local Law
Provisions.  In the event
of any inconsistencies between the terms and conditions of this Section 18
and the other terms and conditions of this Note, the terms and conditions of
this Section 18 shall control and be binding.

(a)           MAKER HEREBY EXPRESSLY
WAIVES ANY RIGHTS IT MAY HAVE UNDER CALIFORNIA CIVIL CODE SECTION 2954.10 TO
PREPAY THIS NOTE, IN WHOLE OR IN PART, WITHOUT PAYMENT OF A PREPAYMENT CHARGE,
UPON ACCELERATION OF THE MATURITY DATE OF THIS NOTE, AND AGREES THAT IF, FOR
ANY REASON, A PREPAYMENT OF ANY OR ALL OF THIS NOTE IS MADE UPON OR FOLLOWING
ANY ACCELERATION OF THE MATURITY DATE OF THIS NOTE BY HOLDER ON ACCOUNT OF ANY
DEFAULT BY MAKER, INCLUDING, BUT NOT LIMITED TO, ANY TRANSFER, DISPOSITION OR
FURTHER ENCUMBRANCE AS PROHIBITED OR RESTRICTED BY THE LOAN AGREEMENT, THEN
MAKER SHALL BE OBLIGATED TO PAY, CONCURRENTLY THEREWITH, AS A PREPAYMENT
CHARGE, THE APPLICABLE SUM SPECIFIED IN THE LOAN AGREEMENT.  BY INITIALING THIS PROVISION IN THE SPACE
PROVIDED BELOW, MAKER HEREBY DECLARES THAT HOLDER’S AGREEMENT TO MAKE THE LOAN
EVIDENCED BY THIS NOTE AT THE INTEREST RATE AND FOR THE TERM SET FORTH IN THIS
NOTE CONSTITUTES ADEQUATE CONSIDERATION, GIVEN INDIVIDUAL WEIGHT BY MAKER, FOR
THIS WAIVER AND AGREEMENT.

	
  MAKER’S INITIALS:  By:

  	
   

  

 

[Signature on the following page]

 8

 

IN
WITNESS WHEREOF, Maker has caused this Promissory Note to be properly executed
as of the date first above written and has authorized this Promissory Note to
be dated as of the day and year first above written.

	
   

  	
   

  	
  MAKER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WESTCORE LUNDY, LLC, a Delaware limited

  liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  WESTCORE LUNDY PARTNERS, a

  Delaware general partnership, its sole Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  WP LUNDY, LLC, a Delaware limited

  liability company, its Managing Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  MRB MANAGER, LLC, a

  Delaware limited liability

  company, its Manager

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

 

 

Promissory NoteExhibit
10.18

EXECUTION
COPY

$200,000,000

MASTER REPURCHASE
AGREEMENT

Dated as of October 26,
2006

among

DCTRT SECURITIES HOLDCO
LLC

and

TRT LENDING LLC,

as Sellers,

and

JPMORGAN CHASE BANK,
N.A.,

as Buyer

 

TABLE OF CONTENTS

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1.
  APPLICABILITY

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2.
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3.
  INITIATION; CONFIRMATION; TERMINATION; FEES

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4.
  MARGIN MAINTENANCE

  	
   

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5.
  INCOME PAYMENTS AND PRINCIPAL PAYMENTS

  	
   

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6.
  SECURITY INTEREST

  	
   

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7.
  PAYMENT, TRANSFER AND CUSTODY

  	
   

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8. SALE,
  TRANSFER, HYPOTHECATION OR PLEDGE OF PURCHASED ASSETS

  	
   

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9. EARLY
  TERMINATION

  	
   

  	
  47

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10.
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  47

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11.
  NEGATIVE COVENANTS OF SELLER

  	
   

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12.
  AFFIRMATIVE COVENANTS OF SELLER

  	
   

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13.
  EVENTS OF DEFAULT; REMEDIES

  	
   

  	
  61

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14.
  SINGLE AGREEMENT

  	
   

  	
  66

  
	
   

  	
   

  	
   

  
	
  ARTICLE 15.
  RECORDING OF COMMUNICATIONS

  	
   

  	
  67

  
	
   

  	
   

  	
   

  
	
  ARTICLE 16.
  NOTICES AND OTHER COMMUNICATIONS

  	
   

  	
  67

  
	
   

  	
   

  	
   

  
	
  ARTICLE 17.
  ENTIRE AGREEMENT; SEVERABILITY

  	
   

  	
  68

  
	
   

  	
   

  	
   

  
	
  ARTICLE 18. NON
  ASSIGNABILITY

  	
   

  	
  68

  

 

 i
 

 

 

	
  ARTICLE 19. GOVERNING LAW

  	
   

  	
  69

  
	
   

  	
   

  	
   

  
	
  ARTICLE 20. NO
  WAIVERS, ETC.

  	
   

  	
  69

  
	
   

  	
   

  	
   

  
	
  ARTICLE 21. USE
  OF EMPLOYEE PLAN ASSETS

  	
   

  	
  69

  
	
   

  	
   

  	
   

  
	
  ARTICLE 22.
  INTENT

  	
   

  	
  69

  
	
   

  	
   

  	
   

  
	
  ARTICLE 23.
  DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS

  	
   

  	
  70

  
	
   

  	
   

  	
   

  
	
  ARTICLE 24.
  CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

  	
   

  	
  71

  
	
   

  	
   

  	
   

  
	
  ARTICLE 25. NO
  RELIANCE

  	
   

  	
  72

  
	
   

  	
   

  	
   

  
	
  ARTICLE 26.
  INDEMNITY

  	
   

  	
  72

  
	
   

  	
   

  	
   

  
	
  ARTICLE 27. DUE
  DILIGENCE

  	
   

  	
  73

  
	
   

  	
   

  	
   

  
	
  ARTICLE 28.
  SERVICING

  	
   

  	
  74

  
	
   

  	
   

  	
   

  
	
  ARTICLE 29.
  MISCELLANEOUS

  	
   

  	
  75

  

 

	
  1.

  	
  DEFINED TERMS

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  GUARANTEE

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  SUBROGATION

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  AMENDMENTS, ETC

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  GUARANTEE ABSOLUTE
  AND UNCONDITIONAL

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  REINSTATEMENT

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  PAYMENTS

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  SEVERABILITY

  	
   

  	
  6

  

 

 ii
 

 

 

	
  10.

  	
  PARAGRAPH
  HEADINGS

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  NO WAIVER;
  CUMULATIVE REMEDIES

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  WAIVERS AND
  AMENDMENTS; SUCCESSORS AND ASSIGNS; GOVERNING LAW

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  NOTICES

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
  SUBMISSION TO
  JURISDICTION; WAIVERS

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
  INTEGRATION

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
  ACKNOWLEDGMENTS

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  WAIVERS OF JURY
  TRIAL

  	
   

  	
  8

  

 

 iii
 

 

 

	
  ANNEXES, EXHIBITS AND SCHEDULES

  
	
   

  	
   

  
	
  ANNEX I

  	
  Names and Addresses for Communications between
  Parties

  
	
   

  	
   

  
	
  SCHEDULE I

  	
  Advance Rates and Applicable Pricing Rates

  
	
   

  	
   

  
	
  EXHIBIT I

  	
  Form of Confirmation

  
	
   

  	
   

  
	
  EXHIBIT II

  	
  Authorized Representatives of Seller

  
	
   

  	
   

  
	
  EXHIBIT III

  	
  Monthly Reporting Package

  
	
   

  	
   

  
	
  EXHIBIT IV

  	
  Form of Custodial Delivery

  
	
   

  	
   

  
	
  EXHIBIT V

  	
  Form of Power of Attorney

  
	
   

  	
   

  
	
  EXHIBIT VI

  	
  Representations and Warranties Regarding Individual
  Purchased Assets

  
	
   

  	
   

  
	
  EXHIBIT VII

  	
  Asset Information

  
	
   

  	
   

  
	
  EXHIBIT VIII

  	
  Advance Procedure

  
	
   

  	
   

  
	
  EXHIBIT IX

  	
  Form of Redirection Letter

  
	
   

  	
   

  
	
  EXHIBIT X

  	
  Form of Bailee Letter

  
	
   

  	
   

  
	
  EXHIBIT XI

  	
  Form of Guarantee

  
	
   

  	
   

  
	
  EXHIBIT XII

  	
  Form of Margin Deficit Notice

  
	
   

  	
   

  
	
  EXHIBIT XIII

  	
  UCC Filing Jurisdictions

  
	
   

  	
   

  
	
  EXHIBIT XIV

  	
  Form of Opinion(s)

  
	
   

  	
   

  
	
  EXHIBIT XV

  	
  Additional Eligible Collateral

  
	
   

  	
   

  
	
  EXHIBIT XVI

  	
  Form of Servicer Notice

  
	
   

  	
   

  
	
  EXHIBIT XVII

  	
  Form of Release Letter

  
	
   

  	
   

  
	
  EXHIBIT XVIII

  	
  [Intentionally omitted.]

  
	
   

  	
   

  
	
  EXHIBIT XIX

  	
  Covenant Compliance Certificate

  
	
   

  	
   

  
	
  EXHIBIT XX

  	
  Control Agreement

  
	
   

  	
   

  
	
  EXHIBIT XXI

  	
  Form of Custodial Agreement

  

 

 iv

MASTER REPURCHASE AGREEMENT

MASTER REPURCHASE AGREEMENT, dated as of October 26,
2006, by and among DCTRT SECURITIES HOLDCO LLC a Delaware limited liability
company, TRT LENDING LLC, a Delaware limited liability company (each, a “Seller”
with respect to the Eligible Assets that it sells to Buyer, and together, the “Sellers”)
and JPMORGAN CHASE BANK, N.A., a banking association organized under the laws
of the United States (the “Buyer”).

ARTICLE 1.

APPLICABILITY

From time to time the parties hereto may enter into
transactions in which Seller and Buyer agree to the transfer from Seller to
Buyer all of its rights, title and interest to certain Eligible Assets (as
defined herein) or other assets and, in each case, the other related Purchased
Items (as defined herein) (collectively, the “Assets”) against the transfer
of funds by Buyer to Seller, with a simultaneous agreement by Buyer to transfer
back to Seller such Assets at a date certain or on demand, against the transfer
of funds by Seller to Buyer.  Each such transaction
shall be referred to herein as a “Transaction” and, unless otherwise
agreed in writing, shall be governed by this Agreement, including any
supplemental terms or conditions contained in any exhibits identified herein as
applicable hereunder.  Each individual
transfer of an Eligible Asset shall constitute a distinct Transaction.

ARTICLE 2.

DEFINITIONS

“Accelerated Repurchase Date”
shall have the meaning specified in Article 13(b)(i) of this Agreement.

“Accepted Servicing Practices”
shall mean with respect to any applicable Purchased Asset, those mortgage
servicing practices of prudent mortgage lending institutions that service
mortgage and/or mezzanine loans of the same type as such Purchased Asset in the
state where the related underlying real estate directly or indirectly securing
or supporting such Purchased Asset is located.

“Acceptable Attorney” means
an attorney-at-law that has delivered at Seller’s request a Bailee
Letter, with the exception of an attorney whom Buyer has notified Seller is not
satisfactory to Buyer.

“Accommodation Loan”
means a performing Senior Mortgage Loan that is originated by either Seller or
an Affiliate of Seller and secured by a first mortgage lien on one or more
multifamily or commercial properties owned either by Seller or an Affiliate of
Seller, and characterized under the applicable provisions of this Agreement, as
either a Like-Kind Exchange Accommodation Loan or a Conduit Accommodation
Loan.  Each Accommodation Loan shall, at
all times, be serviced in accordance with the Accommodation Loan Servicing
Agreement and must satisfy all of the applicable requirements set forth Exhibit
VI, including, without limitation,

 

the requirement in Section 42 thereof that the
borrower thereunder be “Single Purpose Entity”, as such term is defined
therein.

“Accommodation Loan
Servicing Agreement” shall mean a separate Servicing Agreement, in form and
substance acceptable to Buyer, providing for the servicing by an independent
third-party, acceptable to Buyer, of each of the Accommodation Loans.

“Act of Insolvency” shall
mean, with respect to any Person, (i) the filing of a petition,
commencing, or authorizing the commencement of any case or proceeding under any
bankruptcy, insolvency, reorganization, liquidation, dissolution or similar law
relating to the protection of creditors, or suffering any such petition or
proceeding to be commenced by another which is consented to, not timely
contested or results in entry of an order for relief; (ii) the seeking or
consenting to the appointment of a receiver, trustee, custodian or similar
official for such Person or any substantial part of the property of such
Person; (iii) the appointment of a receiver, conservator, or manager for
such Person by any governmental agency or authority having the jurisdiction to
do so; (iv) the making of a general assignment for the benefit of
creditors; (v) the admission by such Person of its inability to pay its
debts or discharge its obligations as they become due or mature; or
(vi) that any Governmental Authority or agency or any person, agency or
entity acting or purporting to act under Governmental Authority shall have
taken any action to condemn, seize or appropriate, or to assume custody or
control of, all or any substantial part of the property of such Person, or
shall have taken any action to displace the management of such Person or to
curtail its authority in the conduct of the business of such Person.

“Additional Eligible
Collateral” shall mean any of the items indicated on Exhibit XV
hereto.

“Advance Rate” shall mean,
with respect to each Transaction and any Pricing Rate Period, the initial
Advance Rate selected by Seller for such Transaction as shown in the related
Confirmation, as adjusted at the option of Seller for any Special Purpose
Transaction or otherwise in accordance with Article 4 hereof, but not in
excess of the Advance Rate shown on Schedule I attached to this
Agreement for assets of the same Asset Type Grouping and the applicable loan to
value ratio shown on Schedule I or Rating Agency rating.

“Affiliate” shall mean,
when used with respect to any specified Person, (i) any other Person
directly or indirectly controlling, controlled by, or under common control
with, such Person.  Control shall mean
the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise and “controlling” and “controlled”
shall have meanings correlative thereto, or (ii) any “affiliate” of such
Person, as such term is defined in the Bankruptcy Code.

“Affiliated Hedge
Counterparty” shall mean JPMorgan Chase Bank, N.A., or any Affiliate
thereof, in its capacity as a party to any Hedging Transaction with Seller.

 2
 

 

“Agreement” shall mean this
Master Repurchase Agreement, dated as of October 26, 2006 by and among DCTRT
Securities Holdco LLC, TRT Lending LLC and JPMorgan Chase Bank, N.A., as such
agreement may be modified or supplemented from time to time.

“Alternative Rate” shall
have the meaning specified in Article 3(j) of this Agreement.

“Alternative Rate Transaction”
shall mean, with respect to any Pricing Rate Period, any Transaction with
respect to which the Pricing Rate for such Pricing Rate Period is determined
with reference to the Alternative Rate.

“Applicable Spread” shall
mean, with respect to a Transaction involving a Purchased Asset in any Asset
Type Grouping:

(i)       so long as no Event of
Default shall have occurred and be continuing, the incremental per annum rate
(expressed as a number of “basis points”, each basis point being equivalent to
1/100 of 1%) specified in Schedule I attached to this Agreement as being
the “Applicable Spread” for Purchased Assets in such Asset Type Grouping for
the applicable loan-to-value ratio shown on Schedule I
or Rating Agency ratings, as applicable, or such lower rate as may be
determined by Buyer in its sole discretion in the event that the Advance Rate
applicable to any Purchased Asset is less than the related Maximum Advance
Rate, in each case as determined by the Buyer on each Pricing Rate
Determination Date in accordance with Article 3(d), and

(ii)      after the occurrence and
during the continuance of an Event of Default, the applicable incremental per
annum rate described in clause (i) of this definition, plus 400 basis points
(4.0%).

“Approved Servicer”
shall mean any nationally recognized commercial mortgage loan servicer (i)
rated at least “CSS2,” (or equivalent successor rating), in the case of a
special servicer, or at least “CMS2,” (or equivalent successor rating), in the
case of a master servicer, by Fitch, 
or  (ii) on the S&P Select
Servicer List as a U.S. Commercial Mortgage Master Servicer or a U.S.
Commercial Mortgage Special Servicer, as applicable.

“Asset DSCR” shall
mean, with respect to any Purchased Asset, determined as of any date of
determination, the ratio of (x) the Net Operating Income of the Underlying
Mortgaged Property for such Purchased Asset during the 12-month period ending
on the prior month end date nearest to the date of determination to (y) the
total amount of debt service paid with respect to all Indebtedness and other
obligations secured directly or indirectly by the Underlying Mortgaged Property
related to such Purchased Asset during the 12-month period ending on the prior
month end date nearest to the date of determination.

“Asset Information” shall
mean, with respect to each Purchased Asset, the information set forth in Exhibit
VII attached hereto.

“Asset Type Grouping” shall
mean, with respect to the Eligible Assets, any of the types of Eligible Assets
listed in Schedule I attached to this Agreement.

“Assets” shall have the
meaning specified in Article 1.

 3
 

 

“B-Note” means the
original promissory note, if any, that was executed and delivered in connection
with the subordinate portion of a Senior Mortgage Loan.

“Bailee Letter” means a
letter from an Acceptable Attorney or from a Title Company, in the form
attached to this Agreement as Exhibit X, wherein such Acceptable
Attorney or Title Company in possession of a Purchased Asset File (i)
acknowledges receipt of such Purchased Asset File, (ii) confirms that such
Acceptable Attorney, Title Company, or other Person acceptable to Buyer is
holding the same as bailee of Buyer under such letter and (iii) agrees that
such Acceptable Attorney or Title Company shall deliver such Purchased Asset
File to the Custodian by not later than the third (3rd) Business Day following
the Purchase Date for the related Purchased Asset.

“Bankruptcy Code”
shall mean The United States Bankruptcy Code of 1978, as amended from time to
time.

“Breakage Costs”
shall have the meaning assigned thereto in Article 3(o).

“Business Day” shall mean a
day other than (i) a Saturday or Sunday, or (ii) a day in which the New York
Stock Exchange or banks in the States of New York and Illinois are authorized
or obligated by law or executive order to be closed.  Notwithstanding the foregoing sentence, when
used with respect to the determination of LIBOR, “Business Day” shall only be a
day on which commercial banks are open for international business (including
dealings in U.S. Dollar deposits) in London, England.

“Buyer” shall mean JPMorgan
Chase Bank, N.A., or any successor.

“Buyer’s Margin Amount”
shall mean with respect to any Transaction and any Purchased Asset on any date,
the Maximum Advance Rate available for such Purchased Asset multiplied by the
Market Value of such Purchased Asset as of the date of determination.

“Capitalized Lease
Obligations” shall mean obligations under a lease that are required to be
capitalized for financial reporting purposes in accordance with GAAP.  The amount of a Capitalized Lease Obligation
is the capitalized amount of such obligation as would be required to be
reflected on the balance sheet prepared in accordance with GAAP of the applicable
Person as of the applicable date.

“Cash Management Account”
shall mean a segregated interest bearing account, in the name of Buyer,
established at the Depository pursuant to the Control Agreement.

“CF Sweep Event” shall mean
a determination by Buyer, in accordance with Article 4 of this
Agreement, that a Margin Deficit exists.

“Closing Date”
shall mean October 26, 2006.

“CMBS” shall mean
pass-through
certificates representing beneficial ownership interests in one or more first
lien mortgage loans secured by commercial and/or multifamily properties,
regardless of rating.

 4
 

 

“Code” shall mean the
Internal Revenue Code of 1986, as amended.

“Collateral” shall have the
meaning specified in Article 6 of this Agreement.

“Collection Period” shall
mean with respect to the Remittance Date in any month, the period beginning on
but excluding the Cut-off Date in the month preceding the month in which
such Remittance Date occurs and continuing to and including the Cut-off
Date immediately preceding such Remittance Date.

“Concentration Limit” shall
mean the limit on the maximum portion of the aggregate Purchase Price on each
Business Day that may be represented by the collateral securing Purchased
Assets that are certain types of Eligible Loans, which limit is (i) 10% of the
Facility Amount for Eligible Loans directly or indirectly secured by mortgages
on undeveloped real estate and (ii) 37.5% of the Facility Amount for Like-Kind
Exchange Loans.

“Conduit Accommodation
Loan” shall mean each Accommodation Loan that will be refinanced on a
long-term basis by Seller after being repurchased by Seller pursuant to this
Agreement, as designated by Seller pursuant to Article 3(b)(ii).  Notwithstanding anything to the contrary in
this Agreement, all Conduit Accommodation Loans shall be automatically
recharacterized as Like-Kind Exchange Accommodation Loans on the ninety-first
(91st) day
after they were first purchased by Buyer under this Agreement.

“Confirmation” shall have
the meaning specified in Article 3(b) of this Agreement.

“Consolidated Total
Indebtedness”  shall mean, as of any
date of determination with respect to any Person, the aggregate principal
amount (including, with respect to any Indebtedness originally issued at a
discount, the accreted portion thereof) of Indebtedness of such Person and its
Subsidiaries at such time, determined on a consolidated basis in accordance
with GAAP, but excluding any Indebtedness in respect of issued but undrawn
letters of credit.

“Consolidated Tangible Net Worth”  shall mean, as of any date of determination
with respect to any Person, all items which, in conformity with GAAP, would be
included under shareholders’ or members’ equity on a consolidated balance sheet
of such Person; provided that all goodwill and intangible assets of such
Person and its Subsidiaries, determined on a consolidated basis in accordance
with GAAP, shall be excluded.

“Control Agreement” shall
mean that certain Account Control Agreement, dated as of the date hereof, among
Buyer, Seller and the Depository, in the form attached hereto as Exhibit XX.

“Covenant Compliance Certificate”
shall have the meaning specified in Article 3(b)(ix) hereof.

“CRE CDO” shall
mean commercial real estate collateralized debt obligations.

“Custodial Agreement” shall
mean the Custodial Agreement, dated as of the date hereof, by and among the
Custodian, Seller and Buyer, the form of which is attached hereto as Exhibit XXI.

 5
 

 

“Custodial Delivery” shall
mean the form executed by Seller in order to deliver the Purchased Asset
Schedule and the Purchased Asset File to Buyer or its designee (including the
Custodian) pursuant to Article 7 of this Agreement, a form of which is
attached hereto as Exhibit IV.

“Custodian” shall mean
LaSalle Bank National Association or any successor Custodian appointed by Buyer.

“Cut-off Date” shall
mean the second Business Day preceding each Remittance Date.

“Default” shall
mean any event which, with the giving of notice, the passage of time, or both,
would constitute an Event of Default.

“Defaulted Mortgage Asset”
shall mean any loan (a) that is sixty (60) days or more delinquent in the
payment of principal, interest, fees or other amounts payable under the terms
of the related loan documents, (b) for which there is a material breach of the
applicable representations and warranties set forth on Exhibit VI
hereto, or (c) as to which an Act of Insolvency shall have occurred with
respect to the Borrower or (d) as to which a material non-monetary event of
default shall have occurred under any document included in the Purchased Asset
File for such Purchased Asset.

“Delinquent Mortgage
Asset” shall mean a loan that is thirty (30) or more days, but less than
sixty (60) days, delinquent in the payment of principal, interest, fees or
other amounts payable under the terms of the related loan documents.

“Depository” shall mean
LaSalle Bank National Association, or any successor Depository appointed by
Buyer with the prior written consent of Seller (such consent to not be
unreasonably withheld or delayed).

“Diligence Materials” shall
mean the Preliminary Due Diligence Package together with the Supplemental Due
Diligence List.

“DCTRT” shall mean Dividend
Capital Total Realty Trust Inc.

“Draft Appraisal” shall
mean a short form appraisal, “letter opinion of value,” or any other form of
draft appraisal acceptable to Buyer.

“Early Repurchase” shall
mean a repurchase of a Purchased Asset as described in Article 3(f)
of this Agreement.

“Early Repurchase Date”
shall have the meaning specified in Article 3(f) of this Agreement.

“Early Termination” shall
have the meaning set forth in Article 9.

“Eligible Assets” shall
mean any of the following types of assets or loans (i) that are acceptable to
Buyer in its sole and absolute discretion, (ii) with respect to which the
representations and warranties set forth in this Agreement (including the
exhibits hereto) are true

 6
 

 

and correct in all material respects, and (iii) that
are secured directly or indirectly by a property that is a multifamily, retail,
office, warehouse and hospitality property (or any other property type
acceptable to Buyer in its sole discretion) and is located in the United States
of America, its territories or possessions (or elsewhere, in the sole
discretion of Buyer):

	
  (i)

  	
  Senior Mortgage Loans;

  
	
   

  	
   

  
	
  (ii)

  	
  Accommodation Loans;

  
	
   

  	
   

  
	
  (iii)

  	
  Junior Notes/Junior Interests;

  
	
   

  	
   

  
	
  (iv)

  	
  Mezzanine
  Loans;

  
	
   

  	
   

  
	
  (v)

  	
  CMBS;

  
	
   

  	
   

  
	
  (vi)

  	
  Synthetic
  CMBS;

  
	
   

  	
   

  
	
  (vii)

  	
  CRE CDO rated BB-/Ba3 or higher, or, if issued by
  Seller or an Affiliate of Seller, rated BBB/Baa3 or higher; and

  
	
   

  	
   

  
	
  (viii)

  	
  any Additional Eligible Collateral transferred to
  Buyer in connection with a Margin Deficit.

  

 

Notwithstanding anything to the contrary contained in
this Agreement, the following shall not be Eligible Assets for purposes of this
Agreement: (i) Non-performing loans; (ii) loans that are Defaulted
Mortgage Assets or Delinquent Mortgage Assets; (iii) loans with an Asset DSCR
of less than 1.05:1; or (iv) assets secured directly or indirectly by loans
described in the preceding clauses (i) or (ii), other than CMBS, Synthetic
CMBS, or CRE CDO.

“Eligible Loans” shall mean any Senior
Mortgage Loans, Accommodation Loans, Junior Interests or Mezzanine Loans that
are also Eligible Assets.

“Environmental Law” shall mean any federal,
state, foreign or local statute, law, rule, regulation, ordinance, code,
guideline, written policy and rule of common law now or hereafter in effect and
in each case as amended, and any judicial or administrative interpretation
thereof, including any judicial or administrative order, consent decree or
judgment, relating to the environment, employee health and safety or Hazardous
Materials, including, without limitation, CERCLA; RCRA; the Federal Water
Pollution Control Act, 33 U.S.C. § 1251 et  seq.; the Toxic
Substances Control Act, 15 U.S.C. § 2601 et  seq.; the Clean
Air Act, 42 U.S.C. § 7401 et  seq.; the Safe Drinking Water
Act, 42 U.S.C. § 3803 et  seq.; the Oil Pollution Act of
1990, 33 U.S.C. § 2701 et  seq.; the Emergency Planning and
the Community Right-to-Know Act of 1986, 42 U.S.C. § 11001 et  seq.;
the Hazardous Material Transportation Act, 49 U.S.C. § 1801 et  seq.
and the Occupational Safety and Health Act, 29 U.S.C. § 651 et  seq.;
and any state and local or foreign counterparts or equivalents, in each case as
amended from time to time.

“Environmental Report”
shall have the meaning specified in paragraph 30 of the section of Exhibit
VI dealing with Eligible Loans.

 7
 

 

“ERISA” shall mean the
Employee Retirement Income Security Act of 1974, as amended from time to time,
and the regulations promulgated thereunder. 
Article references to ERISA are to ERISA, as in effect at the date of
this Agreement and, as of the relevant date, any subsequent provisions of
ERISA, amendatory thereof, supplemental thereto or substituted therefor.

“ERISA Affiliate” shall
mean any corporation or trade or business that is a member of any group of
organizations (i) described in Article 414(b) or (c) of the Code of which
Seller is a member and (ii) solely for purposes of potential liability under
Article 302(c)(11) of ERISA and Article 412(c)(11) of the Code and the
lien created under Article 302(f) of ERISA and Article 412(n) of the Code,
described in Article 414(m) or (o) of the Code of which Seller is a member.

“Event of Default” shall
have the meaning specified in Article 13 of this Agreement.

“Exit Fee” shall mean the
fee equal to 0.15% of the Purchase Price (at the time of repurchase) of any
Purchased Asset that is the subject of a Transaction, payable pursuant to Article
3(e)(ii) of this Agreement.

“Extension Conditions”
shall have the meaning specified in Article 3(g) of this Agreement.

“Facility Amount” shall
mean $200,000,000, or such lesser amount as agreed to by Buyer and Sellers in
accordance with Article 3(q).

“Federal Funds Rate” shall
mean, for any day, the weighted average of the rates on overnight federal funds
transactions with members of the Federal Reserve System arranged by federal
funds brokers, as published on the next succeeding Business Day by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day that
is a Business Day, the average of the quotations for the day of such
transactions received by Buyer from three federal funds brokers of recognized
standing selected by it.

“Filings” shall have the
meaning specified in Article 6(d) of this Agreement.

“Final Maturity Date”
shall mean October 26, 2009.

“Financing
Lease” shall mean any lease of property, real or personal, the obligations
of the lessee in respect of which are required in accordance with GAAP to be
capitalized on a balance sheet of the lessee.

“Foreclosed Loan”
shall mean an Eligible Loan with respect to which the Underlying Mortgaged
Property has been foreclosed upon by Seller or, in the case of Junior Interest,
by the Servicer of the Underlying Mortgage Loan.

“GAAP” shall mean United
States generally accepted accounting principles consistently applied as in
effect from time to time.

“Governmental Authority”
shall mean any national or federal government, any state, regional, local or
other political subdivision thereof with jurisdiction and any Person with

 8
 

 

jurisdiction exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government
(including any supra-national bodies such as the  European Union or the European Central Bank).

“Guarantor” shall mean (i)
Dividend Capital Total Realty Trust, Inc., a Maryland corporation and an
Affiliate and the indirect owner of 100% of the equity interests of each Seller
and (ii) Dividend Capital Total Realty Operating Partnership, LP, a Delaware
limited partnership and the direct owner of 100% of the equity interests of
each Seller.

“Guarantee Agreement”
shall mean the Guarantee Agreement, dated as of the date hereof and in the form
attached as Exhibit XI hereto, from Guarantors in favor of Buyer, which
operates to cause Guarantors to be jointly and severally responsible for all of
the obligations of Seller to Buyer under this Agreement, any and all of the
other Transaction Documents and all other related obligations incurred, whether
now or in the future, by Seller in connection with any of the foregoing.

“Guarantee Obligation” shall mean, as to any
Person (the “guaranteeing person”), any obligation of (a) the
guaranteeing person or (b) another Person (including, without limitation,
any bank under any letter of credit) to induce the creation of which the
guaranteeing person has issued a reimbursement, counterindemnity or similar
obligation, in either case guaranteeing or in effect guaranteeing any
Indebtedness, leases, dividends or other obligations (the “primary
obligations”) of any other third Person (the “primary obligor”) in
any manner, whether directly or indirectly, including, without limitation, any
obligation of the guaranteeing person, whether or not contingent, (i) to
purchase any such primary obligation or any property constituting direct or
indirect security therefor, (ii) to advance or supply funds (1)  for
the purchase or payment of any such primary obligation or (2) to maintain
working capital or equity capital of the primary obligor or otherwise to
maintain the net worth or solvency of the primary obligor, (iii) to
purchase property, securities or services primarily for the purpose of assuring
the owner of any such primary obligation of the ability of the primary obligor
to make payment of such primary obligation or (iv) otherwise to assure or
hold harmless the owner of any such primary obligation against loss in respect
thereof; provided, however, that the term Guarantee Obligation
shall not include endorsements of instruments for deposit or collection in the
ordinary course of business.  The terms “Guarantee”
and “Guaranteed” used as a verb shall have a correlative meaning.  The amount of any Guarantee Obligation of any
guaranteeing person shall be deemed to be the lower of (a) an amount equal
to the stated or determinable amount of the primary obligation in respect of
which such Guarantee Obligation is made and (b) the maximum amount for
which such guaranteeing person may be liable pursuant to the terms of the
instrument embodying such Guarantee Obligation, unless such primary obligation
and the maximum amount for which such guaranteeing person may be liable are not
stated or determinable, in which case the amount of such Guarantee Obligation
shall be such guaranteeing person’s maximum reasonably anticipated liability in
respect thereof as determined in good faith.

“Hedge-Required Asset” shall mean any
Eligible Asset that is a fixed rate Eligible Asset.

“Hedging Transactions”
shall mean, with respect to any or all of the Purchased Assets, any short sale
of U.S. Treasury Securities or mortgage-related securities, futures
contract (including Eurodollar futures) or options contract or any interest
rate swap, cap or collar

 9
 

 

agreement or similar arrangements providing for
protection against fluctuations in interest rates or the exchange of nominal
interest obligations, entered into by any Affiliated Hedge Counterparty or
Qualified Hedge Counterparty with Seller, either generally or under specific
contingencies that is required by Buyer, or otherwise pursuant to this
Agreement, to hedge a Hedge-Required Asset, or that Seller has elected to
pledge or transfer to Buyer pursuant to this Agreement.

“Income” shall mean, with
respect to any Purchased Asset at any time, (x) any collections of principal,
interest, dividends, receipts or other distributions or collections, (y) all
net sale proceeds received by Seller or any Affiliate of Seller in connection
with a sale or liquidation of such Purchased Asset and (z) all payments
actually received by Buyer on account of Hedging Transactions.

“Indebtedness”
shall mean, for any Person,  (a)
obligations created, issued or incurred by such Person for borrowed money
(whether by loan, the issuance and sale of debt securities or the sale of
property to another Person subject to an understanding or agreement, contingent
or otherwise, to repurchase such property from such Person); (b) obligations of
such Person to pay the deferred purchase or acquisition price of property or
services, other than trade accounts payable (other than for borrowed money)
arising, and accrued expenses incurred, in the ordinary course of business so
long as such trade accounts payable are payable within ninety (90) days of the
date the respective goods are delivered or the respective services are
rendered; (c) Indebtedness of others secured by a lien on the property of such
Person, whether or not the respective Indebtedness so secured has been assumed
by such Person; (d) obligations (contingent or otherwise) of such Person in
respect of letters of credit or similar instruments issued or accepted by banks
and other financial institutions for account of such Person; (e) obligations of
such Person under repurchase agreements, sale/buy-back agreements or like arrangements;
(f) Indebtedness of others guaranteed by such Person; (g) all obligations of
such Person incurred in connection with the acquisition or carrying of fixed
assets by such Person; (h) Indebtedness of general partnerships of which such
Person is secondarily or contingently liable (other than by endorsement of
instruments in the course of collection), whether by reason of any agreement to
acquire such indebtedness to supply or advance sums or otherwise; (i)
Capitalized Lease Obligations of such Person; (j) all liabilities or
obligations under any interest rate, interest rate swap, interest rate cap,
interest rate floor, interest rate collar, or other hedging instrument or
agreement. and (k) all obligations of such Person under Finance Leases or
Synthetic Leases.

“Indemnified Amounts” and “Indemnified
Parties” shall have the meaning specified in Article 26 of this
Agreement.

“Internal Revenue Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time, and
the regulations promulgated and rulings issued thereunder.

“Junior Certificate”
shall mean the original participation certificate, if any, that was executed
and delivered in connection with a Junior Interest that is a junior
participation.

“Junior Interest”
shall mean a performing junior participation interest in a stabilized or
transitional senior commercial, multifamily fixed or floating rate mortgage
loan secured by a first

 10
 

 

lien on multifamily and commercial properties or a
subordinate portion of a Senior Mortgage Loan evidenced by a B-Note.

“Leverage” shall
mean, for any Person, the aggregate amount of indebtedness for money borrowed
(included purchase money mortgage loans) outstanding at any time, both secured
and unsecured.

“LIBOR” shall mean the rate
per annum calculated as set forth below:

(i)       On each Pricing Rate
Determination Date, LIBOR for the next Pricing Rate Period will be the rate for
deposits in United States dollars for a one-month period that appears on
Telerate Page 3750 as of 11:00 a.m., London time, on such date; or

(ii)      On any Pricing Rate
Determination Date on which no such rate appears on Telerate Page 3750 as
described above, LIBOR for the next Pricing Rate Period will be determined on
the basis of the arithmetic mean of the rates at which deposits in United States
dollars are offered by the Reference Banks at approximately 11:00 a.m., London
time, on such date to prime banks in the London interbank market for a one-month
period.

All percentages resulting from any calculations or
determinations referred to in this definition will be rounded upwards, if
necessary, to the nearest multiple of 1/100 of 1% and all U.S. dollar amounts
used in or resulting from such calculations will be rounded to the nearest cent
(with one-half cent or more being rounding upwards).

“LIBO Rate” shall mean,
with respect to any Pricing Rate Period pertaining to a Transaction, a rate per
annum determined for such Pricing Rate Period in accordance with the following
formula (rounded upward to the nearest 1/100th of 1%):

	
  

  	
   

  	
  LIBOR

  	
   

  	
   

  
	
   

  	
   

  	
  1 — Reserve Requirement

  	
   

  	
   

  

 

“LIBOR Transaction” shall
mean, with respect to any Pricing Rate Period, any Transaction with respect to
which the Pricing Rate for such Pricing Rate Period is determined with
reference to the LIBO Rate.

“Lien” shall mean
any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge or other security interest or
any preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever (including, without limitation,
any conditional sale or other title retention agreement and any financing lease
having substantially the same economic effect as any of the foregoing), and the
filing of any financing statement under the UCC or comparable law of any
jurisdiction in respect of any of the foregoing.

“Like-Kind Exchange
Accommodation Loan” shall mean each Accommodation Loan (i) designated as
such by Seller pursuant to Article 3(b)(ii) or automatically
redesignated as such pursuant to the definition of the term Conduit
Accommodation Loan herein.

 11

 

“Margin
Deadline” has the meaning specified in Article 4(a).

“Margin Deficit” shall
have the meaning specified in Article 4(a).

“Market Value” shall
mean, with respect to any Purchased Asset as of any relevant date, the market
value for such Purchased Asset on such date as determined by Buyer in its sole
discretion.  The aggregate Market Value
of the Purchased Assets shall be reduced to the extent that application of the
Concentration Limit to the Purchased Assets at any time results in breach of
the Concentration Limit (such reduction to be determined by the Buyer by
reference to the Purchased Assets secured by the Underlying Mortgaged
Properties that give rise to breach of the Concentration Limit).  The Market Value shall be deemed to be zero
with respect to each Purchased Asset (i) in respect of which there is a breach
of a representation and warranty set forth in Exhibit VI that has
not been cured by Seller, if a cure is permitted, in accordance with the terms
of this Agreement) or waived in writing by Buyer (assuming that each
representation and warranty is made or remade as of each date that the Market
Value is determined), (ii) subject to Article 7(c), in respect of
which the complete Purchased Asset File has not been delivered to the Custodian
in accordance with the terms of the Custodial Agreement, (iii) that has been
released from the possession of the Custodian under the Custodial Agreement to
Seller for a period in excess of twenty (20) calendar days, (iv) upon the
occurrence of any Act of Insolvency with respect to any co-participant or any
other Person having an interest in such Purchased Asset or any related
Underlying Mortgaged Property that is senior to, or pari passu with, in right
of payment or priority the rights of Buyer in such Purchased Asset, and (v)
that is determined by Buyer not to be an Eligible Asset.

The Market Value of each
Purchased Asset may be determined by Buyer, in its sole discretion, on each
Business Day during the term of this Agreement.

“Material
Adverse Effect” shall mean a material adverse effect on (a) the property,
business, operations, financial condition or prospects of Seller or Guarantors,
(b) the ability of Seller or Guarantors to perform its obligations under any of
the Transaction Documents, (c) the validity or enforceability of any of the
Transaction Documents, (d) the rights and remedies of Buyer under any of the
Transaction Documents, (e) the timely payment of any amounts payable under the
Transaction Documents, or (f) the Market Value, rating (if applicable) or
liquidity of all of the Purchased Assets in the aggregate.

“Materials
of Environmental Concern” shall mean any toxic mold, any petroleum
(including, without limitation, crude oil or any fraction thereof) or petroleum
products (including, without limitation, gasoline) or any hazardous or toxic
substances, materials or wastes, defined as such in or regulated under any
Environmental Law, including, without limitation, asbestos, polychlorinated
biphenyls, and urea-formaldehyde insulation.

“Maximum Advance Rate”
shall mean, with respect to each Purchased Asset, the “Advance Rate” specified
for the applicable Asset Type Grouping in Schedule I attached to
this Agreement for the applicable loan-to-value ratio shown in Schedule I
or Rating Agency rating, as applicable, or if not shown in Schedule I
or otherwise agreed to by Seller and Buyer, as determined by Buyer in its sole
and absolute discretion.

 12
 

 

“Mezzanine Loan”
shall mean a performing loan primarily secured by a pledge of full or partial
equity ownership interests in one or more entities that own directly or
indirectly multifamily or commercial properties that serve as collateral for
Senior Mortgage Loans.

“Mezzanine
Note” shall mean the original promissory note that was executed and
delivered in connection with a particular Mezzanine Loan.

“Minimum
Transfer Amount” shall mean, with respect to Seller, $250,000; provided,
however, that if a Default or an Event of Default has occurred and is
continuing hereunder, the Minimum Transfer Amount shall be U.S. $0.

“Moody’s” shall mean
Moody’s Investors Service, Inc.

“Mortgage” shall mean a
mortgage, deed of trust, deed to secure debt or other instrument, creating a
valid and enforceable first Lien on or a first priority ownership interest in
an estate in fee simple in real property and the improvements thereon, securing
a Mortgage Note or similar evidence of indebtedness.

“Mortgage Note” shall
mean a note or other evidence of indebtedness of a Mortgagor secured by a
Mortgage, including any A-Note, B-Note or Junior Certificate that is a
Purchased Asset.

“Mortgagor” shall mean
the obligor on a Mortgage Note and the grantor of the related Mortgage, or the
obligor on a Mezzanine Note or Junior Interest.

“Multiemployer Plan”
shall mean a multiemployer plan defined as such in Article 3(37) of ERISA to
which contributions have been, or were required to have been, made by Seller or
any ERISA Affiliate and that is covered by Title IV of ERISA.

“Net
Assets” shall mean, for any Person, total assets (other than intangibles)
at cost, before deducting depreciation, reserves for bad debts or other
non-cash reserves, less total liabilities.

“Net
Income” shall mean, with respect to any Person for any period, the net
income of such Person for such period as determined in accordance with GAAP.

“Net
Operating Income” shall mean, with respect to any Underlying Mortgaged
Property, for any period, the actual net operating income (including, but not
limited to, any net income from Hedging Transactions) calculated in accordance
with customary Commercial Mortgage Securities Association (CMSA) criteria for
commercial mortgaged properties.

“New Asset” shall mean
an Eligible Asset that a Seller proposes to be included as a Purchased Item.

“Originated Asset”
shall mean any Eligible Asset originated by a Seller.

 13
 

 

“Other
Warehouse Facilities” shall mean loan and security agreements, repurchase
agreements and similar agreements entered into from time to time by Seller with
respect to financial assets similar to Eligible Assets, excluding this
Agreement.

“Permitted
Liens” shall have the meaning specified in Article 11(e) hereof.

“Person” shall mean an
individual, corporation, limited liability company, business trust,
partnership, joint tenant or tenant-in-common, trust, joint stock
company, joint venture, unincorporated organization, or any other entity of
whatever nature, or a Governmental Authority.

“Plan” shall mean an
employee benefit or other plan established or maintained by Seller or any ERISA
Affiliate during the five year period ended prior to the date of this Agreement
or to which Seller or any ERISA Affiliate makes, is obligated to make or has,
within the five year period ended prior to the date of this Agreement, been
required to make contributions and that is covered by Title IV of ERISA or
Article 302 of ERISA or Article 412 of the Code, other than a Multiemployer
Plan.

“Plan
Party” shall have the meaning set forth in Article 21(a) of this
Agreement.

“Pre-Existing Asset”
shall mean any Eligible Asset that is not an Originated Asset.

“Preliminary Due Diligence Package”
shall mean with respect to any New Asset, the following due diligence
information relating to the New Asset to be provided by Seller to Buyer and
Buyer’s counsel pursuant to this Agreement:

(i)            With
respect to each Eligible Asset that consists of an Eligible Loan:

(i)         the
Asset Information and, if available, maps and photos;

(ii)        Seller’s
internal credit memoranda used for approval and underwriting;

(iii)       current rent roll and roll over schedule, if
applicable;

(iv)       cash
flow pro-forma, plus historical information, if available;

(v)       copies
of appraisal, environmental, engineering and any other third-party
reports provided that, if same are not available to Seller at the time
of Seller’s submission of the Preliminary Due Diligence Package to Buyer,
Seller shall deliver such items to Buyer promptly upon Seller’s receipt of such
items;

(vi)      description
of the underlying real estate directly or indirectly securing or supporting
such Purchased Asset and the ownership structure of the borrower and the
sponsor (including, without limitation, the board of directors, if applicable)
and, to the extent that real property does not secure such Eligible Loan, the
related collateral securing such Eligible Loan, if any;

 14
 

 

(vii)     indicative debt service coverage ratios;

(viii)    indicative
loan-to-value ratio;

(ix)       term
sheet outlining the transaction generally;

(x)        Seller’s
relationship with the Mortgagor, if any, and Mortgagor’s financial statements;
and

(xi)       with
respect to any New Asset that is a Pre-Existing Asset, a list that specifically
and expressly identifies any Purchased Asset Documents that relate to such New
Asset but are not in Seller’s possession;

(xii)      analyses
and/or reports with respect to such other matters concerning the New Asset as
Buyer may approve in its sole discretion;

(xiii)     documents
evidencing such New Asset, or current drafts thereof, including, without
limitation, underlying debt and security documents, guaranties, the underlying
borrower’s and guarantor’s organizational documents, warrant agreements, and
loan and collateral pledge agreements, as applicable, provided that, if same
are not available to Seller at the time of Seller’s submission of the
Preliminary Due Diligence Package to Buyer, Seller shall deliver such items to
Buyer promptly upon Seller’s receipt of such items;

(xiv)     in the
case of Subordinate Eligible Assets, all information described in this
definition that would otherwise be provided for the Underlying Mortgage Loan if
it were an Eligible Asset, and in addition, all documentation evidencing such
Subordinate Eligible Asset;

(xv)      any
exceptions to the representations and warranties set forth in Exhibit VI to
this Agreement; and

(xvi)     with
respect to each Special Purpose Transaction requested to be entered into to
provide for the funding of future funding obligations, unless the Buyer shall
otherwise agree, the Preliminary Due Diligence Package for such Special Purpose
Transaction shall include all such additional information as was contemplated
to be provided in connection with such funding when the initial Transaction was
entered into in respect of the related Purchased Asset.

(ii)           With
respect to each Eligible Asset that consists
of CMBS or Synthetic CMBS:

(i)         the related prospectus or offering circular;

(ii)        all structural and collateral term sheets and all other computational or
other similar materials provided to Seller in connection with its acquisition of such CMBS or Synthetic CMBS;

 15
 

 

(iii)       all distribution date statements issued in respect thereof during
the immediately preceding 12 months (or, if less, since the date such CMBS or
Synthetic CMBS was issued);

(iv)      all
monthly CMSA reporting packages issued in respect of such CMBS or Synthetic
CMBS during the immediately preceding 12 months (or, if less, since the date
such CMBS or Synthetic CMBS was issued);

(v)       all
Rating Agency pre-sale reports;

(vi)      all asset
summaries and any other due diligence materials, including, without limitation,
reports prepared by third parties, provided to Seller in connection with its acquisition
of such CMBS or Synthetic CMBS;

(vii)     the related
pooling and servicing agreement; and

(viii)    with
respect to each Special Purpose Transaction requested to be entered into to
provide for the funding of future funding obligations, unless the Buyer shall
otherwise agree, the Preliminary Due Diligence Package for such Special Purpose
Transaction shall include all such additional information as was contemplated
to be provided in connection with such funding when the initial Transaction was
entered into in respect of the related Purchased Asset.

With
respect to each Eligible Asset that consists of an CRE CDO:

(i)         the related prospectus or offering circular;

(ii)        all remittance
statements or other reports issued in respect thereof during the immediately
preceding 12 months (or, if less, since the date such CRE CDO was issued);

(iii)       any
information or reports provided to Seller in connection with its acquisition or
ownership of the CRE CDO asset;

(iv)      the
related indenture;

(v)       the
most recent annual and quarterly 1934 Act reports filed with respect to the
related issuer, if applicable;

(vi)      all
structural and collateral term sheets and all other computational or other
similar materials provided to Seller in connection with its acquisition of such
CRE CDO asset;

(vii)     all
distribution date statements issued in respect thereof during the immediately
preceding 12 months (or, if less, since the date such CRE CDO was issued);

 16
 

 

(viii)    all
monthly CMSA reporting packages issued in
respect of such CRE CDO during the
immediately preceding 12 months (or, if less, since the date such CRE
CDO was issued);

(ix)       all Rating Agency pre-sale reports;

(x)        all
asset summaries and any other due diligence materials, including, without
limitation, reports prepared by third parties, provided to Seller in connection
with its acquisition of such CRE CDO; and

(xi)       with
respect to each Special Purpose Transaction requested to be entered into to
provide for the funding of future funding obligations, unless the Buyer shall
otherwise agree, the Preliminary Due Diligence Package for such Special Purpose
Transaction shall include all such additional information as was contemplated
to be provided in connection with such funding when the initial Transaction was
entered into in respect of the related Purchased Asset.

“Pre-Purchase
Due Diligence” shall have the meaning set forth in Article 3(b)(i)
hereof.

“Pre-Purchase
Legal Fees”  shall mean all of the
reasonable and necessary out of pocket legal fees, costs and expenses incurred
by Buyer in connection with the Pre-Purchase Due Diligence associated with
Buyer’s decision as to whether or not to enter into a particular Transaction.

“Price Differential”
shall mean, with respect to any Purchased Asset as of any date, the aggregate
amount obtained by daily application (but not daily compounding) of 1/360 of
the applicable Pricing Rate for such Purchased Asset and such day to the
Purchase Price of such Purchased Asset on a 360-day-per-year basis for the
actual number of days during each Pricing Rate Period commencing on (and
including) the Purchase Date for such Purchased Asset and ending on (but
excluding) the date of determination (reduced by any amount of such Price
Differential previously paid by Seller to Buyer with respect to such Purchased
Asset).

“Pricing Rate” shall
mean, for any Pricing Rate Period, an annual rate equal to the sum of (i) the
LIBO Rate and (ii) the relevant Applicable Spread, in each case, for the
applicable Pricing Rate Period for the related Purchased Asset. The Pricing
Rate shall be subject to adjustment and/or conversion as provided in the
Transaction Documents.

“Pricing Rate Determination Date”
shall mean with respect to any Pricing Rate Period with respect to any
Transaction, the second (2nd) Business Day preceding the first day of such
Pricing Rate Period.

“Pricing Rate Period”
shall mean, with respect to any Transaction (a) in the case of the first
Pricing Rate Period, the period commencing on and including the Purchase Date
for such Transaction and ending on and excluding the following Remittance Date,
and (b) in the case of any subsequent Pricing Rate Period, the period
commencing on and including such Remittance Date and ending on and excluding
the following Remittance Date; provided, however, that in no
event shall any Pricing Rate Period for a Purchased Asset end subsequent to the
Repurchase Date for such Purchased Asset.

 17
 

 

“Principal Payment”
shall mean, with respect to any Purchased Asset, any payment or prepayment
received by the Depository in respect thereof that is determined by the
Servicer of the Mortgage Loan or Underlying Mortgage Loan to be a payment or
prepayment of principal.

“Purchase Date” shall
mean, with respect to any Purchased Asset, the date on which Buyer purchases
such Purchased Asset from Seller hereunder.

“Purchase Price” shall
mean, with respect to any Purchased Asset, the price at which such Purchased
Asset is transferred by Seller to Buyer on the applicable Purchase Date,
adjusted after the Purchase Date as set forth below.  The Purchase Price as of the Purchase Date
for any Purchased Asset shall be an amount (expressed in dollars) equal to the
product obtained by multiplying (i) the Market Value of such Purchased Asset
(or the par amount of such Purchased Asset, if lower than Market Value) by (ii)
the “Advance Rate” for such Purchased Asset, as set forth in Schedule I
attached to this Agreement; provided, that notwithstanding the
foregoing, Seller may request that the Purchase Price set forth in a
Confirmation be determined by applying a percentage lower than the Advance Rate
set forth in Schedule I attached to this Agreement and, in such event, such
lower percentage shall be deemed the “Advance Rate” for purposes of this
Agreement.  The Purchase Price of any
Purchased Asset shall be (x) increased at Seller’s request by any additional
amount advanced by Buyer to Seller with respect to such Purchased Asset and (y)
decreased by (i) the portion of any Principal Payments on such Purchased Asset
that are applied pursuant to Article 5 hereof to reduce such Purchase Price and
(ii) any other amounts paid to Buyer by Seller to reduce such Purchase Price.

“Purchased Asset Documents”
shall mean, with respect to a Purchased Asset, the documents comprising the
Purchased Asset File for such Purchased Asset.

“Purchased Asset File”
shall mean the documents specified as the “Purchased Asset File” in Article
7(b), together with any additional documents and information required to be
delivered to Buyer or its designee (including the Custodian) pursuant to this
Agreement; provided that to the extent that Buyer waives, including
pursuant to Article 7(c), receipt of any document in connection with the
purchase of an Eligible Asset (but not if Buyer merely agrees to accept
delivery of such document after the Purchase Date), such document shall not be
a required component of the Purchased Asset File until such time as the Buyer
determines in good faith that such document is necessary or appropriate for the
servicing of the applicable Purchased Asset.

“Purchased Asset” shall
mean (i) with respect to any Transaction, the Eligible Asset sold by Seller to
Buyer in such Transaction and (ii) with respect to the Transactions in general,
all Eligible Assets sold by Seller to Buyer and any Additional Eligible
Collateral delivered by Seller to Buyer pursuant to Article 4(a) of this
Agreement (other than Eligible Assets or Additional Eligible Collateral that
have been repurchased by the Seller).

“Purchased Asset Schedule”
shall mean a schedule of Purchased Assets attached to each Trust Receipt and
Custodial Delivery containing information substantially similar to the Asset
Information.

“Purchased
Items” shall have the meaning specified in Article 6(a) of this
Agreement.

 18
 

 

“Qualified
Hedge Counterparty” shall mean, with respect to any Hedging Transaction,
any entity, other than an Affiliated Hedge Counterparty, that (a) qualifies as
an “eligible contract participant” as such term is defined in the Commodity
Exchange Act (as amended by the Commodity Futures Modernization Act of 2000),
(b) the long-term debt of which is rated no less than “A+” by Standard &
Poor’s Ratings Group, a division of the McGraw-Hill Companies, and “A1” by
Moody’s Investor Services, Inc and (c) is reasonably acceptable to Buyer; provided,
that with respect to clause (c), if Buyer has approved an entity as a
counterparty, it may not thereafter deem such counterparty unacceptable with
respect to any previously outstanding Transaction unless clause (a) or clause
(b) applies.

“Rating Agency” shall
mean any of Fitch Inc., Moody’s Investor Services, Inc. and Standard & Poor’s
Ratings Group, a division of the McGraw-Hill Companies.

“Reference Banks” shall
mean banks each of which shall (i) be a leading bank engaged in transactions in
Eurodollar deposits in the international Eurocurrency market and (ii) have an
established place of business in London. 
Initially, the Reference Banks shall be JPMorgan Chase Bank, Barclays
Bank, Plc and Deutsche Bank AG.  If any
such Reference Bank should be unwilling or unable to act as such or if Buyer
shall terminate the appointment of any such Reference Bank or if any of the
Reference Banks should be removed from the Reuters Monitor Money Rates Service
or in any other way fail to meet the qualifications of a Reference Bank, Buyer,
in its sole discretion, may designate alternative banks meeting the criteria
specified in clauses (i) and (ii) above.

“Release
Letter” shall mean a letter substantially in the form of Exhibit XVII
hereto (or such other form as may be acceptable to Buyer).

“Relevant System” shall
mean (a) The Depository Trust Company in New York, New York, or (b) such other
clearing organization or book-entry system as is designated in writing by
Buyer.

“REMIC”
shall mean a real estate mortgage investment conduit, within the meaning of
Section 860D(a) of the Internal Revenue Code.

“Remittance Date” shall
mean the tenth (10th)
calendar day of each month, or the immediately following Business Day, if such
calendar day shall not be a Business Day, or such other day as is mutually
agreed to by Seller and Buyer.

“REO
Property” shall mean real property acquired by Seller, including a
mortgaged property acquired through foreclosure of an Eligible Asset or by deed
in lieu of such foreclosure.

“Repurchase Date” means
the earliest to occur of (i) the Termination Date, (ii) the date set forth in
the applicable Confirmation, or (iii) the Accelerated Repurchase Date.

“Repurchase Price”
shall mean, with respect to any Eligible Asset as of any Repurchase Date or any
date on which the Repurchase Price is required to be determined hereunder, the
price at which such Eligible Asset is to be transferred from Buyer to Seller;
such price will be determined in each case as the sum of the (i) Purchase Price
of such Eligible Asset,  (ii) the
accreted and unpaid Price Differential with respect to such Eligible Asset as
of the date of such

 19
 

 

determination (other
than, with respect to calculations in connection with the determination of a
Margin Deficit, accreted and unpaid Price Differential for the current Pricing
Rate Period), (iii) any Breakage Costs incurred by Buyer in connection with
such Repurchase Date (if such Repurchase Date is not a Remittance Date) (other
than in connection with Hedging Transactions), (iv) any other amounts due and
owing to Buyer and its Affiliates pursuant to the terms of the Agreement as of
such date, (v) any amounts that would be payable to (a positive amount) a
Qualified Hedge Counterparty under any related Hedging Transaction, if such
Hedging Transaction were terminated on the date of determination; and (vi) any
amounts that would be payable to (a positive amount) or by (a negative amount)
an Affiliated Hedge Counterparty under any related Hedging Transaction, if such
Hedging Transaction were terminated on the date of determination; provided,
that with respect to any determination of Repurchase Price that is made in
connection with the actual repurchase by Seller of any Purchased Asset (and not
in connection with any calculation of Margin Deficit or other determination
that is made during the course of a Transaction and that is not related to such
a repurchase), (x) the Repurchase Price for such Purchased Asset shall take
into account amounts payable to (a positive amount) or by (a negative amount)
an Affiliated Hedge Counterparty under any related Hedging Transaction only (i)
as long as no Default or Event of Default shall have occurred and be
continuing, (ii) to the extent such amounts are actually then due and payable
under the related Hedging Transaction with an Affiliated Hedge Counterparty and
(iii) to the extent that Seller shall have provided the applicable Affiliated
Hedge Counterparty with written instructions that any amounts payable to Seller
by such Affiliated Hedge Counterparty under the related Hedging Transaction
shall instead be paid by such Affiliated Hedge Counterparty directly to Buyer
and (y) no amounts relating to a Hedging Transaction with a Qualified Hedge
Counterparty shall be taken into account.

“Requested
Exceptions Report” shall have the meaning assigned thereto in Article 3(b)(vi).

“Requirement of Law”
shall mean any law, treaty, rule, regulation, code, directive, policy, order or
requirement or determination of an arbitrator or a court or other Governmental
Authority whether now or hereafter enacted or in effect.

“Reserve Requirement”
shall mean, with respect to any Pricing Rate Period, the aggregate (without
duplication) of the rates (expressed as a decimal fraction) of reserve
requirements in effect during such Pricing Rate Period (including, without
limitation, basic, supplemental, marginal and emergency reserves under any
regulations of the Board of Governors of the Federal Reserve System or other
Governmental Authority having jurisdiction with respect thereto) dealing with
reserve requirements prescribed for eurocurrency funding (currently referred to
as “Eurocurrency Liabilities” in Regulation D of such Board of Governors)
maintained by Buyer.

“Responsible
Officer” shall mean the vice president or any executive officer of Seller.

“Seller”
shall mean (i) each of the entities identified as “Sellers” in the
Recitals hereto and (ii) such other seller as may be approved by Buyer
from time to time.

 20

 

“Senior
Mortgage Loans”  shall mean
performing senior commercial or multifamily fixed or floating rate mortgage
loans, A-notes or senior participation interests in those mortgage loans,
in each case secured by first liens on multifamily or commercial properties.

“Servicer” shall mean any Approved Servicer.

“Servicer Notice”
shall mean a notice substantially in the form of Exhibit XVI hereto, as
amended, supplemented or otherwise modified from time to time.

“Servicing Agreement” shall have the meaning
specified in Article 28(b).

“Servicing Records” shall have the meaning
specified in Article 28(b).

“Special Purpose
Transaction” shall mean any additional Transaction requested with respect
to any Purchased Asset to provide for the advance of additional funds.

“Structuring Fee”
shall have the meaning specified in Article 3(a)(xi) of this Agreement.

“Subordinate Eligible Assets” shall mean Eligible
Assets described in items (iii) and (iv) of the definition of Eligible Assets.

“Subsidiary” shall
mean, as to any Person, a corporation, partnership or other entity of which
shares of stock or other ownership interests having ordinary voting power
(other than stock or such other ownership interests having such power only by
reason of the happening of a contingency) to elect a majority of the board of
directors or other managers of such corporation, partnership or other entity
are at the time owned, or the management of which is otherwise controlled,
directly or indirectly through one or more intermediaries, or both, by such
Person.  Unless otherwise qualified, all
references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer
to a Subsidiary or Subsidiaries of Seller.

“Supplemental Due Diligence List” shall mean, with
respect to any New Asset, information or deliveries concerning the New Asset
that Buyer shall request in addition to the Preliminary Due Diligence Package,
including, without limitation, a credit approval memorandum representing the
final terms of the underlying transaction, a final loan-to-value
ratio computation and a final debt service coverage ratio computation for such
proposed New Asset.

“Survey” shall mean a certified ALTA/ACSM (or
applicable state standards for the state in which the collateral is located)
survey of the underlying real estate directly or indirectly securing or
supporting such Purchased Asset prepared by a registered independent surveyor
or engineer and in form and content satisfactory to Buyer and the company
issuing the Title Policy for such Property.

“Synthetic CMBS”
shall mean synthetic structures referencing commercial real estate assets or
securities that are designed to contain, to the fullest extent possible, all of
the financial performance characteristics of CMBS.

 21
 

 

“Synthetic
Lease” shall mean, as to any Person, the monetary obligation under any
synthetic, off-balance sheet, tax retention or tax leveraged lease.

“Target Price” shall mean, with respect to any
Purchased Asset as of any date, the amount (expressed in dollars) obtained by
multiplying (i) the Market Value of such Purchased Asset as of such date by
(ii) the then-applicable Advance Rate for such Purchased Asset.

“Telerate Page 3750” shall mean the display page
currently so designated on the Dow Jones Telerate Service (or such other page
as may replace that page on that service for the purpose of displaying
comparable rates or prices).

“Termination Date”
shall mean, with respect to any Transaction, the earlier of (a) 364 days
from the date of such Transaction, or if such Transaction is extended, the date
to which it is extended; (b) any Early Repurchase Date for such
Transaction; (c) the Final Maturity Date, or (d) the date of the
occurrence of an Event of Default.

“Titan Loan” shall
mean the Purchased Asset serviced by Titan Capital ID, LLC.

“Title Company” shall mean a nationally-recognized
title insurance company acceptable to Buyer.

“Title Policy” shall have the meaning specified in
paragraph 9 of the section of Exhibit VI dealing with Eligible
Loans.

“Transaction” shall mean a Transaction, as
specified in Article 1 or a Special Purpose Transaction.

“Transaction Documents” shall mean, collectively,
this Agreement, any applicable Annexes to this Agreement, the Custodial
Agreement, the Servicing Agreement, the Control Agreement, all Hedging
Transactions and all Confirmations and assignment documentation executed
pursuant to this Agreement in connection with specific Transactions.

“Trust Receipt” shall mean a trust receipt issued
by Custodian to Buyer confirming the Custodian’s possession of certain
Purchased Asset Files that are the property of and held by Custodian for the
benefit of Buyer (or any other holder of such trust receipt) or a bailment
arrangement with counsel or other third party acceptable to Buyer in its sole
discretion.

“UCC” shall have the meaning specified in Article
6(d) of this Agreement.

“Underlying
Mortgage Loan” shall mean, with respect to any Junior Interest, Mezzanine
Loan, CMBS or Synthetic CMBS or CRE CDO, a mortgage loan made in respect of the
related Underlying Mortgaged Property.

“Underlying
Mortgaged Property” shall mean, in the case of:

(a)           a Senior Mortgage Loan
or an Accommodation Loan, the Mortgaged Property securing such Senior Mortgage
Loan or Accommodation Loan, as appropriate;

 22
 

 

(b)           a Junior Interest, the
Mortgaged Property securing such Junior Interest, or the Mortgaged Property
securing the Mortgage Loan in which such Junior Interest represents a junior
participation, as applicable;

(c)           a Mezzanine Loan, the
Mortgaged Property that is owned by the Person the equity of which is pledged
as collateral security for such Mezzanine Loan;

(d)           a CMBS or a Synthetic
CMBS, the Mortgaged Property securing the mortgage loans related to such
security;

(e)           a CRE CDO, the
Mortgaged Property securing the mortgage loans related to such security.

“Underwriting Issues” shall mean, with respect to
any Purchased Asset as to which Seller intends to request a Transaction, all
material information that has come to Seller’s attention that, based on the
making of reasonable inquiries and the exercise of reasonable care and
diligence under the circumstances, would be considered a materially “negative”
factor (either separately or in the aggregate with other information), or a
material defect in loan documentation or closing deliveries (such as any absence
of any material Purchased Asset Document(s)), to a reasonable institutional
mortgage buyer in determining whether to originate or acquire the Purchased
Asset in question.

All references to articles, schedules and exhibits are
to articles, schedules and exhibits in or to this Agreement unless otherwise
specified.  The words “hereof,” “herein”
and “hereunder” and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this
Agreement.  All accounting terms not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles. 
References to “good faith” in this Agreement shall mean “good faith” as
defined in Section 1.201(19) of the UCC as in effect in the State of New York
as of the date of the Agreement.

ARTICLE 3.

INITIATION; CONFIRMATION; TERMINATION; FEES; REDUCTION OF

FACILITY AMOUNT

Buyer’s agreement to enter into the initial
Transaction hereunder is subject to the satisfaction, immediately prior to or
concurrently with the making of such Transaction, of the condition precedent
that Buyer shall have received from Seller payment of an amount equal to all
fees and expenses payable hereunder, and all of the following documents, each
of which shall be satisfactory in form and substance to Buyer and its counsel:

(a)           The following
Transaction Documents delivered to Buyer:

(i)            this Agreement, duly completed and executed
by each of the parties hereto;

 23
 

 

(ii)           a Custodial Agreement, duly executed and
delivered by each of the parties thereto;

(iii)          a Control Agreement, duly completed and
executed by each of the parties thereto;

(iv)          the Guarantee Agreement, duly completed and
executed by each of the parties thereto;

(v)           any and all consents and waivers applicable
to Seller or to the Purchased Assets;

(vi)          UCC Financing Statements for filing in each
of the UCC Filing Jurisdictions described on Exhibit XIII hereto, each
naming Seller as “Debtor” and Buyer as “Secured Party” and describing as “Collateral”
all of the items set forth in the definition of Collateral and Purchased Items
in this Agreement, together with any other documents necessary or requested by
Buyer to perfect the security interests granted by Seller in favor of Buyer
under this Agreement or any other Transaction Document;

(vii)         any documents relating to any Hedging
Transactions;

(viii)        an opinion or opinions of outside counsel to
Seller, substantially in the form of Exhibit XIV;

(ix)           good standing certificates and certified
copies of the charters and by-laws (or equivalent documents) of Seller and
Guarantors and of all corporate or other authority for Seller and Guarantors
with respect to the execution, delivery and performance of the Transaction
Documents and each other document to be delivered by Seller and Guarantors from
time to time in connection herewith (and Buyer may conclusively rely on such
certificate until it receives notice in writing from Seller or Guarantors to
the contrary);

(x)            Buyer shall have received payment from
Seller of an amount equal to the amount of actual costs and expenses,
including, without limitation, the reasonable fees and expenses of counsel to
Buyer, incurred by Buyer in connection with the development, preparation and
execution of this Agreement, the other Transaction Documents and any other
documents prepared in connection herewith or therewith;

(xi)           Buyer shall have received payment from
Seller, as consideration for Buyer’s agreement to enter into this Agreement, an
up-front structuring fee in an amount equal to $200,000 (calculated as ten (10)
basis points (0.10%) multiplied by the Facility Amount), such amount to be paid to Buyer in U.S. Dollars, in immediately
available funds, without deduction, set-off or counterclaim (the “Structuring
Fee”);

(xii)          the Accommodation Loan Servicing Agreement,
duly completed and executed by each of the parties thereto; and

 24
 

 

(xiii)         all such other and further documents,
documentation and legal opinions as Buyer in its sole discretion shall
reasonably require.

(b)           Buyer’s agreement to
enter into each Transaction (including the initial Transaction and each Special
Purpose Transaction) is subject to the satisfaction of the following further
conditions precedent, both immediately prior to entering into such Transaction
and also after giving effect to the consummation thereof and the intended use
of the proceeds of the sale:

(i)            Seller shall give Buyer written notice of
each Transaction (including the initial Transaction and each Special Purpose
Transaction) and Buyer shall inform Seller of its determination with respect to
any such proposed Transaction solely in accordance with Exhibit VIII
attached hereto.  Buyer shall have the
right to review the Eligible Assets Seller proposes to sell to Buyer in any
Transaction and to conduct its own due diligence investigation of such Eligible
Assets as Buyer determines (“Pre-Purchase Due Diligence”).  Buyer shall be entitled to make a
determination, in the exercise of its sole discretion, that, in the case of a
Transaction other than a Special Purpose Transaction, it shall or shall not
purchase any or all of the assets proposed to be sold to Buyer by Seller or, in
the case of a Special Purpose Transaction, shall or shall not provide
additional funds to the Seller.  On the
Purchase Date for the Transaction that shall be not less than one (1) Business
Day following the final approval of an Eligible Asset by Buyer in accordance
with Exhibit VIII hereto, the Purchased Assets shall be transferred to
Buyer or its agent against the transfer of the Purchase Price to an account of
Seller.

(ii)           Buyer shall have delivered to Seller (with a
copy to Custodian) a written confirmation in the form of Exhibit I
attached hereto at least ten (10) days prior to each Transaction (a “Confirmation”).  Such Confirmation shall describe the
Purchased Assets, shall identify Buyer and Seller, and shall set forth:

(A)          the Purchase Date;

(B)           the Purchase Price for the Purchased Asset
included in the Transaction;

(C)           the Repurchase Date;

(D)          any additional terms or conditions not
inconsistent with this Agreement;

(E)           for a Purchased Asset that is an
Accommodation Loan, whether or not it shall be treated, for purposes of this
Agreement, as either a Like-Kind Exchange Accommodation Loan or a Conduit
Accommodation Loan, with the understanding that, should Buyer fail to designate
a particular loan, such failure shall be deemed to be Buyer’s designation of
each such loan as a Like-Kind Exchange Accommodation Loan, and with the further
understanding that, notwithstanding the designation of an Accommodation Loan as
a Conduit Accommodation Loan, each such designation can be automatically
changed to a Like-Kind Exchange Designation Loan, as set forth in the
definition of a Conduit Accommodation Loan herein; and

 25
 

 

(F)           the requested Advance Rate, such Advance
Rate being less than or equal to the Advance Rate set forth on Schedule I
hereto.

(iii)          Buyer shall have (A) determined, in its sole
and absolute discretion, that the asset proposed to be sold to Buyer by Seller
in such Transaction is an Eligible Asset and (B) obtained internal credit
approval, to be granted or denied in Buyer’s sole and absolute discretion, for
the inclusion of such Eligible Asset as a Purchased Asset in a Transaction,
without regard for any prior credit decisions by Buyer or any Affiliate of
Buyer, and with the understanding that Buyer shall have the absolute right to
change any or all of its internal underwriting criteria at any time, without
notice of any kind to Seller;

(iv)          Buyer shall have determined the Pricing Rate applicable
to the Transaction (including the Applicable Spread) in accordance with Schedule I
hereto;

(v)           no Default or Event of Default shall have
occurred and be continuing under this Agreement or any other Transaction
Document and no event shall have occurred which has, or would reasonably be
expected to have, a Material Adverse Effect;

(vi)          Seller shall have delivered to Buyer a list
of all exceptions to the representations and warranties relating to the
Purchased Asset and any other eligibility criteria for such Purchased Asset
(the “Requested Exceptions Report”);

(vii)         Buyer shall have waived all exceptions in the
Requested Exceptions Report;

(viii)        as of the Purchase Date for such proposed
Transaction, no Act of Insolvency shall have occurred with respect to either
Guarantor;

(ix)           Buyer shall have received a certificate, in
form and substance identical to the form attached hereto as Exhibit XIX
to this Agreement (the “Covenant Compliance Certificate”), from a
Responsible Officer of Seller, delivered no later than one Business Day prior
to the date of such Transaction, (i) showing in detail the calculations
demonstrating that, after giving effect to the requested Transaction, no Margin
Deficit shall then exist; (ii) stating that, as of the date of such certificate
and since the date of the certificate most recently delivered pursuant to Article
12(j), Seller has observed or performed all of its covenants and other
agreements in all material respects, and satisfied in all material respects,
every condition, contained in this Agreement and the related documents to be
observed, performed or satisfied by it; (iii) stating that as of the date
of such certificate such Responsible Officer has obtained no knowledge of any
Default or Event of Default except as specified in such certificate;
(iv) stating that as of the date of such certificate the representations
and warranties made by Seller in Article 10 are true, correct and
complete in all material respects with the same force and effect as if made on
and as of such date (or, if any such representation or warranty is expressly
stated to have been made as of a specific date, as of such specific date); (v)
stating that as of the date of such certificate such Responsible Officer has
obtained no knowledge that any “Termination Event”, “Event of Default”, “Potential
Event of Default” or any similar event by Seller, however denominated, has
occurred and is continuing under any Hedging

 26
 

 

Transaction; (vi) describing all interests of Seller’s Affiliates
in any Underlying Mortgaged Property related to any proposed Eligible Asset
(including without limitation, any lien, encumbrance or other debt or equity
position or other interest in the Underlying Mortgaged Property that is senior
or junior to, or pari passu with, the proposed
Eligible Asset in
right of payment or priority) as of the date of such certificate and
(vii) showing in detail the calculations supporting such Responsible
Officer’s certification of the applicable Seller’s compliance with the
financial requirements of Article 11;

(x)            both immediately prior to the requested
Transaction and also after giving effect thereto and to the intended use
thereof, the representations and warranties made by Seller in Article 10,
as applicable, shall be true, correct and complete on and as of such Purchase
Date in all material respects with the same force and effect as if made on and
as of such date (or, if any such representation or warranty is expressly stated
to have been made as of a specific date, as of such specific date);

(xi)           subject to Buyer’s right to perform one or
more due diligence reviews pursuant to Article 27, Buyer shall have
completed its due diligence review of the Purchased Asset File, and such other
documents, records, agreements, instruments, mortgaged properties or
information relating to such Purchased Asset as Buyer in its sole discretion
deems appropriate to review and such review shall be satisfactory to Buyer in
its sole discretion and Buyer has consented in writing to the Eligible Asset
becoming a Purchased Asset; provided, that if Buyer’s diligence review
of the Purchased Asset File requires the delivery of a mortgage file or the
equivalent, Seller shall have the benefit of such delayed delivery provisions
as are customary in pooling and servicing agreements (e.g., while a promissory
note (or analogous document directly evidencing the obligation) must be
delivered as a condition of closing, an ancillary document or estoppels may be
delivered within a reasonable time frame thereafter);

(xii)          with respect to any Eligible Asset to be
purchased hereunder on the related Purchase Date which is not serviced by Seller or an Affiliate thereof, Seller
shall have provided to Buyer a copy of the related Servicing Agreement,
certified as a true, correct and complete copy of the original, together with a
Servicer Notice, fully executed by Seller and Servicer;

(xiii)         Buyer shall have invoiced Seller for, and
Seller shall have approved and paid to Buyer all Pre-Purchase Legal Fees and
any other costs and expenses incurred by Buyer in connection with the entering
into of any Transaction hereunder, including, without limitation, costs
associated with due diligence, recording or other administrative expenses
necessary or incidental to the execution of any Transaction hereunder, which
amounts, at Buyer’s option, may be withheld from the sale proceeds of any
Transaction hereunder;

(xiv)        no Margin Deficit shall exist, either
immediately prior to or after giving effect to the requested Transaction;

(xv)         Buyer shall have received from Custodian on
each Purchase Date an Asset Schedule and Exception Report (as defined in the
Custodial Agreement) with respect to

 27
 

 

each Purchased Asset, dated the Purchase Date, duly completed and with
exceptions acceptable to Buyer in its sole discretion in respect of Eligible
Assets to be purchased hereunder on such Business Day;

(xvi)        Buyer shall have received from Seller a Release
Letter covering each Eligible Asset to be sold to Buyer;

(xvii)       Buyer shall not have reasonably determined that
the introduction of, or a change in, any Requirement of Law or in the
interpretation or administration of any Requirement of Law applicable to Buyer
has made it unlawful, and no Governmental Authority shall have asserted that it
is unlawful, for Buyer to enter into Transactions;

(xviii)      the Repurchase Date for such Transaction is not
later than the Final Maturity Date;

(xix)         Seller shall have taken such other action as
Buyer shall have reasonably requested in order to transfer the Purchased Assets
pursuant to this Agreement and to perfect all security interests granted under
this Agreement or any other Transaction Document in favor of Buyer with respect
to the Purchased Assets;

(xx)          with respect to any Eligible Asset to be
purchased hereunder, if such Eligible Asset was acquired by Seller, Seller
shall have certified to Buyer in writing the acquisition cost of such Eligible
Asset (including therein reasonable supporting documentation required by Buyer,
if any);

(xxi)         Buyer shall have received all such other and
further documents, documentation and legal opinions as Buyer in its reasonable
discretion shall reasonably require, including, without limitation, opinions
regarding the perfection of Buyer’s security interests, each from independent
counsel to Seller that is acceptable to Buyer and its counsel;

(xxii)        Buyer shall have received a copy of any
documents relating to any Hedging Transaction, and Seller shall have pledged
and assigned to Buyer, pursuant to Article 6 hereunder, all of Seller’s
rights under each Hedging Transaction included within a Purchased Asset, if
any;

(xxiii)       no “Termination Event”, “Event of Default”, “Potential
Event of Default” or any similar event by Seller, however denominated, shall
have occurred and be continuing under any Hedging Transaction;

(xxiv)       the counterparty to Seller in any Hedging
Transaction shall be an Affiliated Hedge Counterparty or a Qualified Hedge
Counterparty, and, in the case of a Qualified Hedge Counterparty, in the event
that such counterparty no longer qualifies as a Qualified Hedging Counterparty,
then, at the election of Buyer, Seller shall ensure (to the extent it is not
prohibited from doing so under the applicable hedging agreements) that such
counterparty posts Additional Eligible Collateral in an amount satisfactory to Buyer
under all its Hedging Transactions with Seller, or Seller shall immediately
terminate the

 28
 

 

Hedging Transactions with such counterparty and enter into new Hedging
Transactions with a Qualified Hedge Counterparty;

(xxv)        Seller shall have delivered a certificate by a
Responsible Officer of Seller certifying that the assumptions set forth in the
non-consolidation opinion of Brown Raysman Millstein Felder & Steiner LLP
to the Buyer delivered in accordance with Article 3(a)(viii) remain true
and correct with respect to the applicable Transaction; and

(xxvi)       Buyer shall have received, upon reasonable
request, the delivery of an updated non-consolidation opinion by a nationally
recognized law firm acceptable to Buyer in its reasonable discretion, with
regard to the non-consolidation opinions delivered to Buyer on the Closing Date
in accordance with Article 3(a)(viii).

(c)           With respect to any
Special Purpose Transaction, the Seller shall comply with each of the
requirements herein as if the Transaction were an initial Transaction, it being
acknowledged that the Seller shall only be required to deliver the documents
that are included as part of the Purchase Asset File upon request by the Buyer.

(d)           With respect to any
Transaction, the Pricing Rate shall be determined initially on the Pricing Rate
Determination Date applicable to the first Pricing Rate Period for such
Transaction, and shall be reset on the Pricing Rate Determination Date for all
of the next succeeding Pricing Rate Periods for such Transaction.  Buyer or its agent shall determine in
accordance with the terms of this Agreement the Pricing Rate on each Pricing
Rate Determination Date for the related Pricing Rate Period taking into account
any changes in the applicable loan-to-value ratio shown on Schedule I or Rating
Agency ratings, as applicable, determined to be applicable to such Transaction
in the Buyer’s sole and absolute discretion and notify Seller of such rate for
such period each such Pricing Rate Determination Date; provided, however,
that the Buyer shall have no affirmative obligation to determine whether there
has been any change in the related terms or quality of the Purchased Asset to
cause any change in the related loan-to-value ratio or Rating
Agency ratings.

(e)           Each Confirmation,
together with this Agreement, shall be conclusive evidence of the terms of the
Transaction(s) covered thereby unless specific objection is made by Seller no
more than ten (10) Business Days after such Confirmation is received by Seller.  In the event of any conflict between the
terms of such Confirmation and the terms of this Agreement, this Agreement
shall prevail.  An objection with respect
to any Confirmation must state specifically that the writing is an objection,
must specify the provision(s) of such Confirmation being objected to by Seller,
must set forth such provision(s) in the manner that Seller believes such
provisions should be stated, and must be received by Buyer no more than three
(3) Business Days after such Confirmation is received by Seller.

(f)            Seller shall be
entitled to terminate a Transaction on demand and repurchase the Purchased
Asset subject to a Transaction on any Business Day prior to the Repurchase Date
(an “Early Repurchase Date”);
provided, however, that:

 29
 

 

(i)            Seller notifies Buyer in writing of its
intent to terminate such Transaction and repurchase such Purchased Asset no
later than five (5) Business Days prior to such Early Repurchase Date,

(ii)           on such Early Repurchase Date, Seller pays
to Buyer an amount equal to the sum of the Repurchase Price for the applicable
Purchased Asset, the Exit Fee, if any, and any other amounts payable under this
Agreement (including, without limitation, Article 3(i) of this
Agreement) with respect to such Purchased Asset against transfer to Seller or
its agent of such Purchased Assets and any related Hedging Transactions;

(iii)          on such Early Repurchase Date, if a Margin
Deficit has occurred and is continuing, in addition to the amounts set forth in
subclause (iii) above, Seller pays to Buyer, on account of a Purchased Asset
then subject to a Transaction, an amount sufficient to reduce the Purchase
Price for such Purchased Asset to an amount equal to the Target Price for such
Purchased Asset.

Such notice shall set forth the Early Repurchase Date
and shall identify with particularity the Purchased Asset to be repurchased on
such Early Repurchase Date.

(g)           On the Termination Date
for any Transaction, termination of the Transaction will be effected by
transfer to Seller or its agent of the Purchased Assets being repurchased (in
the case of any Purchased Asset having a CUSIP number, the same CUSIP number,
and otherwise, the identical asset) and any Income in respect thereof received
by Buyer (and not previously credited or transferred to, or applied to the obligations
of, Seller pursuant to Article 5 of this Agreement) against the
simultaneous transfer of the Repurchase Price to an account of Buyer.  Notwithstanding the foregoing, provided
that all of the extension conditions listed in clauses (i) through (iv) of this
Article 3(g) (collectively, the “Extension Conditions”) shall
have been satisfied, Seller may request to extend such Termination Date by no
more than 364 days from the date of such extension request by giving written
notice to Buyer of such request.  Any
failure by Buyer to deliver to Seller an objection in writing within thirty
(30) days of such request shall be deemed to be Buyer’s consent to extend such
Termination Date.  Notwithstanding the
foregoing, in no event shall the Termination Date be extended beyond the Final
Maturity Date.  For purposes of the
preceding sentence, the Extension Conditions shall be deemed to have been
satisfied if:

(i)            Seller shall have given Buyer written
notice, not less than sixty (60) days prior but no more than one hundred and
eighty (180) days prior to the originally scheduled Termination Date, of Seller’s
desire to extend the Termination Date (and if Seller fails to give such notice,
Seller shall be deemed to have elected not to extend the Termination Date);

(ii)           no Material Adverse Effect, Margin Deficit,
Default or Event of Default under this Agreement shall have occurred and be
continuing as of the date notice is given under subclause (i) above or as of
the originally scheduled Termination Date and no “Termination Event,” “Event of
Default” or “Potential Event of Default” or any similar event by Seller,
however denominated, shall have occurred and be continuing under any Hedging
Transaction; and

 30

 

(iii)          all representations and warranties shall be
true, correct, complete and accurate in all material respects as of the
scheduled Repurchase Date.

(h)           Subject to Article 9,
Seller shall pay to Buyer on each Remittance Date during the term of this
Agreement a non-usage fee in an amount equal to one twelfth (1/12) of
fifteen (15) basis points (0.15%) multiplied by the amount by which the
Facility Amount exceeds the aggregate outstanding Purchase Price of all
Transactions as of each such Remittance Date.

(i)            Subject to Article 9,
Seller shall pay Buyer the Exit Fee with respect to each Transaction on the
earlier to occur of (i) the Repurchase Date for such Transaction, or (ii) on
the date on which such Transaction is terminated for any reason prior to such
Repurchase Date; provided, however, that:

(i)            Seller shall not be required to pay an Exit
Fee with respect to any Purchased Asset repurchased to cure a Margin Deficit in
accordance with Article 4(a)(ii);

(ii)           Seller shall not be required to pay an Exit
Fee in connection with any Purchased Asset that is a Conduit Accommodation Loan
and that is refinanced on a long term basis by Buyer or an Affiliate of Buyer;

(iii)          Seller shall not be obligated to pay Exit
Fees in connection with the repurchase of Like Kind Exchange Accommodation
Loans in excess of $210,000 in the aggregate in any 364 day period, the first
such 364-day period to begin on the Closing Date.

(j)            If prior to the first
day of any Pricing Rate Period with respect to any Transaction, (i) Buyer shall
have determined in the exercise of its reasonable business judgment (which
determination shall be conclusive and binding upon Seller absent manifest
error) that, by reason of circumstances affecting the relevant market, adequate
and reasonable means do not exist for ascertaining the LIBO Rate for such
Pricing Rate Period, or (ii) the LIBO Rate determined or to be determined for
such Pricing Rate Period will not adequately and fairly reflect the cost to
Buyer (as determined and certified by Buyer) of making or maintaining
Transactions during such Pricing Rate Period, Buyer shall give telecopy or
telephonic notice thereof to Seller as soon as practicable thereafter.  If such notice is given, the Pricing Rate
with respect to such Transaction for such Pricing Rate Period, and for any
subsequent Pricing Rate Periods until such notice has been withdrawn by Buyer,
shall be a per annum rate equal to the Federal Funds Rate plus the Applicable
Spread (the “Alternative Rate”).

(k)           Notwithstanding any
other provision herein, if the adoption of or any change in any Requirement of
Law or in the interpretation or application thereof shall make it unlawful for
Buyer to enter into or maintain Transactions as contemplated by the Transaction
Documents, (a) the commitment of Buyer hereunder to enter into new Transactions
and to continue Transactions as such shall forthwith be canceled, and (b) the
Transactions then outstanding shall be converted automatically to Alternative
Rate Transactions on the last day of the then current Pricing Rate Period or
within such earlier period as may be required by law.

(l)            Upon demand by Buyer,
Seller shall indemnify Buyer and hold Buyer harmless from any loss, cost or
expense (including, without limitation, attorneys’ fees and disbursements)

 31
 

 

that Buyer may sustain or incur
as a consequence of (i) default by Seller repurchasing any Purchased Asset
after Seller has given a notice in accordance with Article 3(f) of
an Early Repurchase or pursuant to Article 9(b) of an Early
Termination (ii) any payment of the Repurchase Price on any day other than a
Remittance Date, including Breakage Costs, (iii) a default by Seller in selling
Eligible Assets after Seller has notified Buyer of a proposed Transaction and
Buyer has agreed to purchase such Eligible Assets in accordance with the
provisions of this Agreement, (iv) Buyer’s enforcement of the terms of any of
the Transaction Documents, (v) any actions taken to perfect or continue any
lien created under any Transaction Documents, and/or (vi) Buyer entering into
any of the Transaction Documents or owning any Purchased Item, other than, in
each case, any loss, cost or expense sustained by Buyer as a result of the
Buyer’s bad faith or willful misconduct. 
A certificate as to such costs, losses, damages and expenses, setting
forth the calculations therefor shall be submitted promptly by Buyer to Seller
and shall be prima facie evidence of the information set forth therein.

(m)          If the adoption of or
any change in any Requirement of Law or in the interpretation or application
thereof by any Governmental Authority or compliance by Buyer with any request
or directive (whether or not having the force of law) from any central bank or
other Governmental Authority having jurisdiction over Buyer made subsequent to
the date hereof:

(i)            shall subject Buyer to any tax of any kind
whatsoever with respect to the Transaction Documents, any Purchased Asset or
any Transaction, or change the basis of taxation of payments to Buyer in
respect thereof (except for income taxes and any changes in the rate of tax on
Buyer’s overall net income);

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

(iii)          shall impose on Buyer any other condition; 

and the result of any of the
foregoing is to increase the cost to Buyer, by an amount that Buyer deems, in
the exercise of its reasonable business judgment, to be material, of entering
into, continuing or maintaining Transactions or to reduce any amount receivable
under the Transaction Documents in respect thereof; then, in any such case
Buyer shall, within ten (10) Business Days of the Buyer’s determination that
such costs have increased, notify Seller of the occurrence of such event, and
thereafter, upon receipt of notice of the calculation of any such amounts,
Seller shall promptly pay Buyer, upon its demand, any additional amounts
necessary to compensate Buyer for such increased cost or reduced amount
receivable.  Such notification as to the
calculation of any additional amounts payable pursuant to this subsection shall
be submitted by Buyer to Seller and shall be prima facie evidence of such
additional amounts.  This covenant shall
survive the termination of this Agreement and the repurchase by Seller of any
or all of the Purchased Assets.  On the
next Remittance Date and any time thereafter, following receipt of notice from
Buyer under this Article 3(m), Seller may exercise its rights to
declare an Early

 32
 

 

Termination Date in accordance with Article 9(b)
hereof without the payment of any exit fee to the extent provided in Article 9
hereof.

(n)           If Buyer shall have
determined that the adoption of or any change in any Requirement of Law
regarding capital adequacy or in the interpretation or application thereof or
compliance by Buyer or any corporation controlling Buyer with any request or
directive regarding capital adequacy (whether or not having the force of law)
from any Governmental Authority made subsequent to the date hereof does or
shall have the effect of reducing the rate of return on Buyer’s or such
corporation’s capital as a consequence of its obligations hereunder to a level
below that which Buyer or such corporation could have achieved but for such
adoption, change or compliance (taking into consideration Buyer’s or such
corporation’s policies with respect to capital adequacy) by an amount deemed by
Buyer, in the exercise of its reasonable business judgment, to be material, in
any such case Buyer shall, within ten (10) Business Days of such determination,
notify Seller of the occurrence of such event, and thereafter, after submission
by Buyer to Seller of a written request therefor, Seller shall pay to Buyer
such additional amount or amounts as will compensate Buyer for such
reduction.  Such notification as to the
calculation of any additional amounts payable pursuant to this subsection shall
be submitted by Buyer to Seller and shall be prima facie evidence of such
additional amounts.  This covenant shall
survive the termination of this Agreement and the repurchase by Seller of any
or all of the Purchased Assets.  On the
next Remittance Date and any time thereafter following receipt of notice from
Buyer under this Article 3(n), Seller may exercise its rights to
declare an Early Termination Date in accordance with Article 9(b)
hereof without the payment of any exit fee to the extent provided in Article 9
hereof.

(o)           If Seller repurchases Purchased Assets on a
day other than the last day of a Pricing Rate Period, Seller shall indemnify Buyer
and hold Buyer harmless from any actual
losses, costs and/or expenses which Buyer
sustains as a direct consequence thereof (“Breakage Costs”), in each
case for the remainder of the applicable Pricing Rate Period.  Buyer shall deliver to Seller a statement setting forth the
amount and basis of determination of any Breakage Costs in reasonable detail,
it being agreed that such statement and the method of its calculation shall be
conclusive and binding upon Seller
absent manifest error.  This Article 3(o)
shall survive termination of this Agreement and repurchase of all Purchased
Assets subject to Transactions hereunder.

(p)           Prior to the date of
repurchase of any Conduit Accommodation Loan, Buyer shall provide to Seller a
firm offer of terms for the long term refinancing of such Conduit Accommodation
Loan.  Seller may accept Buyer’s offered
terms for long term refinancing of the Conduit Accommodation Loan (a “Long
Term Refinancing”), or, if the terms offered by Buyer are unacceptable to
Seller, the Seller may seek additional quotes for long term refinancing from
other lenders.

(q)           The Facility Amount may
be permanently reduced to an amount equal to $125,000,000 at the election of
all of the Sellers upon thirty (30) days advance written notice to the Buyer; provided,
that (i) no Default or Event of Default shall have occurred, be continuing, or
exist immediately after giving effect to any such reduction, and (ii) no Margin
Deficit shall exist before or immediately after giving effect to any such
reduction (and to any payments made contemporaneously therewith).

 33
 

 

ARTICLE 4.

MARGIN MAINTENANCE

(a)           If at any time Buyer’s
Margin Amount for all Purchased Assets, plus the value of any Additional
Eligible Collateral previously transferred by Seller to Buyer (and not
retransferred by Buyer to Seller), is less than the Repurchase Price for all
Purchased Assets (a “Margin
Deficit”), then Buyer may by notice to Seller in the form of Exhibit XII
(a “Margin Deficit Notice”)
require Seller to, at Seller’s option, no later than three (3) Business Days
following the receipt of a Margin Deficit Notice (the “Margin Deadline”) to the extent such Margin
Deficit equals or exceeds the Minimum Transfer Amount, (i) transfer to Buyer
for no additional consideration (by transfer to Buyer or its designee
(including the Custodian) of Additional Eligible Collateral, (ii) repurchase
some or all of the Purchased Assets at their respective Repurchase Prices,
(iii) make a payment in reduction of the Purchase Price of one or more
Purchased Assets, or (iv) choose any combination of the foregoing, such that,
after giving effect to such transfers, repurchases and payments, the Buyer’s
Margin Amount for each Purchased Asset, considered individually, shall be equal
to or greater than the related Repurchase Price for such Purchased Asset.

(b)           The failure of Buyer,
on any one or more occasions, to exercise its rights hereunder, shall not
change or alter the terms and conditions to which this Agreement is subject or
limit the right of Buyer to do so at a later date.  Seller and Buyer each agree that a failure or
delay by Buyer to exercise its rights hereunder shall not limit or waive Buyer’s
rights under this Agreement or otherwise existing by law or in any way create
additional rights for Seller.

(c)           Upon written request of
Seller, as of each Remittance Date on which Buyer holds Additional Collateral,
Buyer shall perform the calculation set forth in Article 4(a) above, and
if all or a portion of such Additional Collateral is not necessary to avoid a
Margin Deficit, Buyer shall reassign to Seller such portion of the Additional
Collateral (the particular Additional Collateral to be reassigned to be
determined by Buyer in its sole discretion).

ARTICLE 5.

INCOME PAYMENTS AND PRINCIPAL PAYMENTS

(a)           The Cash Management
Account shall be established at the Depository pursuant to the Control
Agreement concurrently with the execution and delivery of this Agreement by
Seller and Buyer.  Buyer shall have sole
dominion and control over the Cash Management Account, which shall be subject
to the Control Agreement.  All Income in
respect of the Purchased Assets and any payments made to Seller in respect of
associated Hedging Transactions, as well as any interest received from the
reinvestment of such Income, shall be deposited directly into the Cash
Management Account and shall be remitted by the Depository in accordance with
the applicable provisions of Articles 5(b), 5(c), 5(d),
5(e), 5(f), and 5(g) of this Agreement.

(b)           With respect to
Purchased Assets, Seller shall deliver to, as applicable, each Mortgagor,
issuer of a participation, servicer and trustee with respect to the Purchased
Asset or borrower under a Purchased Asset an irrevocable direction letter in
the form attached as Exhibit IX to this Agreement instructing, as
applicable, the Mortgagor, issuer of a participation, servicer or trustee with
respect to the Purchased Asset or borrower to pay all amounts payable

 34
 

 

under the related Purchased
Asset (net of any amounts retained by any trustee, servicer or other person
entitled to priority of payment under the related Purchased Asset Documents) to
the Cash Management Account and shall provide to Buyer proof of such
delivery.  If a Mortgagor, issuer of a
participation, servicer or trustee with respect to the Purchased Asset or
borrower forwards any Income with respect to a Purchased Asset to Seller or any
Affiliate of Seller rather than directly to the Cash Management Account, Seller
shall, or shall cause such Affiliate to, (i) deliver an additional
irrevocable direction letter to the applicable Mortgagor, issuer of a
participation, servicer or trustee with respect to the Purchased Asset or
borrower and make other best efforts to cause such Mortgagor, issuer of a
participation, servicer or trustee with respect to the Purchased Asset or
borrower to forward such amounts directly to the Cash Management Account and
(ii) immediately deposit in the Cash Management Account any such amounts.

(c)           So long as no Event of
Default or CF Sweep Event with respect to any Purchased Asset shall have
occurred and be continuing, all Income received by the Depository in respect of
the Purchased Assets (other than Principal Payments and net sale proceeds) and
the associated Hedging Transactions during each Collection Period shall be
applied by the Depository on the related Remittance Date as follows:

(i)            first, pro
rata, (i) to Buyer, an amount equal to the Price Differential that has accreted
and is outstanding as of such Remittance Date and (ii) to any Affiliated Hedge
Counterparty, any amount then due and payable to an Affiliated Hedge Counterparty
under any Hedging Transaction related to a Purchased Asset;

(ii)           second, to
Buyer, an amount equal to any other amounts due and owing to Buyer or its
Affiliates under any Transaction Document; and

(iii)          third, to
Seller, the remainder, if any.

(d)           So long as no Event of
Default or CF Sweep Event shall have occurred and be continuing, any Principal
Payments and any net sale proceeds in respect of any Purchased Assets that is a
portion of the Income received by the Depository during each Collection Period
shall be applied by the Depository on the related Remittance Date in the
following order of priority:

(i)            first,
pro rata, (i) to Buyer, until the Purchase Price for such Purchased Asset
has been reduced to the Target Price for such Purchased Asset as of the date of
such payment (as determined by Buyer after giving effect to such Principal
Payment and application of net sales proceeds, if applicable) and, solely with
respect to any Hedging Transaction with an Affiliated Hedge Counterparty
related to such Purchased Asset, an amount equal to any accrued and unpaid
breakage costs under such Hedging Transaction related to such Purchased Asset
(if such Principal Payment is applied other than on a Remittance Date);

(ii)           second,
to Buyer, an amount equal to any other amounts due and owing to Buyer or its
Affiliates under any Transaction Document; and

(iii)          third,
to Seller, the remainder of such Principal Payments or net sale proceeds, if
applicable.

 35
 

 

(e)           If a CF Sweep Event
shall have occurred, then the Depository shall hold funds then on deposit in
the Cash Management Account until the earlier to occur of (x) the receipt of
payment of the Margin Deficit by Seller and (y) the Margin Deadline, regardless
of whether a Remittance Date occurs during such period.  If a Remittance Date does occur during such
period, the Remittance Date occurring in such calendar month shall be the later
of (i) the originally scheduled Remittance Date and (ii) the Business Day
following the earlier to occur of (x) and (y) in the previous sentence (a “Special
Remittance Date”).

(i)            If Seller fails to pay the Margin Deficit
by the Margin Deadline, then on the Special Remittance Date, funds on deposit
in the Cash Management Account with respect to the preceding Collection Period
shall be distributed in accordance with Article 5(g), below.

(ii)           If Seller timely pays the Margin Deficit,
then on the Special Remittance Date, funds on deposit in the Cash Management
Account with respect to the preceding Collection Period shall be distributed in
accordance with Article 5(f) below. 
If amounts on deposit in the Cash Management Account are sufficient to
make all distributions to Buyer otherwise required by Article 5(f)
below, and to pay the Margin Deficit, then Seller may direct the Depository to
apply funds in the Cash Management Account on the Remittance Date to pay the
Margin Deficit, and Seller shall be deemed to have timely paid such Margin
Deficit.

(f)            Upon the occurrence and continuance of a CF
Sweep Event, and provided that (x) Article 5(e)(ii) applies and (y) no
Event of Default shall have occurred and be continuing, all Income, Principal
Payments and any net sale proceeds in excess of
the related Repurchase Price received by the Depository in respect of the
Purchased Assets and the associated Hedging Transactions shall be applied by
the Depository on the related Remittance Date in the following order of
priority:

(i)            first, pro
rata, (i) to Buyer, an amount equal to the Price Differential that has accreted
and is outstanding in respect of all of the Purchased Assets as of such
Business Day and (ii) to any Affiliated Hedge Counterparty, any amounts then
due and payable to such Affiliated Hedge Counterparty under any Hedging
Transaction related to such Purchased Asset;

(ii)           second, to
Buyer, an amount equal to the Repurchase Price of each Purchased Asset
hereunder in respect of which such CF Sweep Event occurred, until the related
Repurchase Price for such Purchased Asset has been reduced to the Target Price
for such Purchased Asset as of the date of such payment (as determined by Buyer
after giving effect to such Principal Payment and application of net sale
proceeds, if any);

(iii)          third, to
Buyer, an amount equal to any other amounts due and owing to Buyer or its
Affiliates under any Transaction Document; and

(iv)          fourth, to
Seller, any remainder.

(g)           If an Event of Default
shall have occurred and be continuing, all Income received by the Depository in
respect of the Purchased Assets and the associated Hedging Transactions

 36
 

 

shall be applied by the
Depository on the Business Day next following the Business Day on which such
funds are deposited in the Cash Management Account as follows:

(i)            first, pro
rata, (i) to Buyer, an amount equal to the Price Differential that has accreted
and is outstanding in respect of all of the Purchased Assets as of such
Business Day and (ii) to any Affiliated Hedge Counterparty, any amounts then
due and payable to an Affiliated Hedge Counterparty under any Hedging
Transaction related to such Purchased Asset;

(ii)           second, to
Buyer on account of the Repurchase Price of the Purchased Assets until the
Repurchase Price for all of the Purchased Assets has been reduced to zero;

(iii)          third, to Buyer
, an amount equal to any other amounts due and owing to Buyer or its Affiliates
under any Transaction Document; and

(iv)          fourth, to
remit to Seller the remainder.

ARTICLE 6.

SECURITY INTEREST

(a)           Buyer and Seller intend
that the Transactions hereunder be sales to Buyer of the Purchased Assets and
not loans from Buyer to Seller secured by the Purchased Assets.  However, in order to preserve Buyer’s rights
under this Agreement in the event that a court or other forum re-characterizes
the Transactions hereunder as loans and as security for the performance by
Seller of all of Seller’s obligations to Buyer under the Transaction Documents
and the Transactions entered into hereunder, or in the event that a transfer of
a Purchased Asset is otherwise ineffective to effect an outright transfer of
such Purchased Asset to Buyer, Seller hereby assigns, pledges and grants a
security interest in all of its right, title and interest in, to and under the
Purchased Items (as defined below) to Buyer to secure the payment of the
Repurchase Price and Price Differential on all Transactions to which it is a
party and all other amounts owing by it to Buyer hereunder, including, without
limitation, amounts owing pursuant to Article 26, and under the other
Transaction Documents, including any obligations of Seller under any Hedging
Transaction entered into with any Affiliated Hedge Counterparty (including,
without limitation, all amounts anticipated to be paid to Buyer by an
Affiliated Hedge Counterparty as provided for in the definition of Repurchase
Price) (collectively, the “Repurchase Obligations”).  Seller agrees to mark its computer records
and tapes to evidence the interests granted to Buyer hereunder.  All of Seller’s right, title and interest in,
to and under each of the following items of property, whether now owned or
hereafter acquired, now existing or hereafter created and wherever located, is
hereinafter referred to as the “Purchased Items”:

(i)            the Purchased Assets and all “securities
accounts” (as defined in Article 8-501(a) of the UCC) to which any
or all of the Purchased Assets are credited;

(ii)           any and all Additional Eligible Collateral
transferred to Buyer in accordance with Article 4(a);

 37
 

 

(iii)          the Purchased Asset Documents, Servicing
Agreements, Servicing Records, insurance relating to the Purchased Assets, and
collection and escrow accounts relating to the Purchased Assets;

(iv)          all “general intangibles”, “accounts”, “chattel
paper”, “investment property”, “instruments” and “deposit accounts”, each as
defined in the UCC, relating to or constituting any and all of the foregoing;
and

(v)           all replacements, substitutions or
distributions on or proceeds, payments, Income and profits of, and records (but
excluding any financial models or other proprietary information) and files
relating to any and all of any of the foregoing.

(b)           Without limiting Article
6(a) hereto, to secure payment of the Repurchase Obligations owing to
Buyer, Seller hereby grants to Buyer a security interest in all of Seller’s
right, title and interest in, to and under each of the following items of
property, whether now owned or hereafter acquired, now existing or hereafter
created and wherever located, hereinafter referred to as the “Collateral”:

(i)            the Cash Management Account and all monies
from time to time on deposit in the Cash Management Account;

(ii)           the Purchased Items;

(iii)          any and all replacements, substitutions,
distributions on, income relating to or proceeds of any and all of the
foregoing; and

(iv)          Seller’s right under each Hedging
Transaction, if any, relating to the Purchased Assets to secure the Repurchase
Obligations.

(c)           Buyer agrees to act as
agent for and on behalf of the Affiliated Hedge Counterparties with respect to
the security interest granted hereby to secure the obligations owing to the
Affiliated Hedge Counterparties under any Hedging Transactions, including,
without limitation, with respect to the Purchased Assets and the Purchased
Asset Files held by the Custodian pursuant to the Custodial Agreement.

(d)           Buyer’s security
interest in the Collateral and Purchased Items shall terminate only upon termination
of Seller’s obligations under this Agreement, all Hedging Transactions and the
documents delivered in connection herewith and therewith.  Upon such termination, Buyer shall deliver to
Seller such UCC termination statements and other release documents as may be
commercially reasonable and return the Purchased Assets to Seller and reconvey
the Purchased Items to Seller and release its security interest in the
Collateral.  For purposes of the grant of
the security interest pursuant to this Article 6, this Agreement shall
be deemed to constitute a security agreement under the New York Uniform
Commercial Code (the “UCC”).  Buyer shall have all of the rights and may
exercise all of the remedies of a secured creditor under the UCC and the other
laws of the State of New York.  In
furtherance of the foregoing, (a) Seller, at its sole cost and expense, shall
cause to be filed in such locations as may be necessary to perfect and maintain
perfection and priority of the security interest granted hereby, UCC financing
statements and continuation statements (collectively, the “Filings”), and shall
forward

 38
 

 

copies of such Filings to Buyer
upon completion thereof, and (b) Seller shall from time to time take such
further actions as may be requested by Buyer to maintain and continue the
perfection and priority of the security interest granted hereby (including
marking its records and files to evidence the interests granted to Buyer
hereunder).

ARTICLE 7.

PAYMENT, TRANSFER AND CUSTODY

(a)           On the Purchase Date
for each Transaction, ownership of the Purchased Asset shall be transferred to
Buyer or its designee (including the Custodian) against the simultaneous
transfer of the Purchase Price to an account of Seller specified in the
Confirmation relating to such Transaction.

(b)           On or before each
Purchase Date, Seller shall deliver or cause to be delivered to Buyer or its
designee the Custodial Delivery in the form attached hereto as Exhibit IV,
provided, that notwithstanding the foregoing, upon request of Seller,
Buyer in its sole but good faith discretion may elect to permit Seller to make
such delivery by not later than the third (3rd) Business Day after the related
Purchase Date, so long as Seller causes an Acceptable Attorney, Title Company
or other Person acceptable to Buyer to deliver to Buyer and the Custodian a
Bailee Letter on or prior to such Purchase Date.  Subject to Article 7(c), in connection
with each sale, transfer, conveyance and assignment of a Purchased Asset, on or
prior to each Purchase Date with respect to such Purchased Asset, Seller shall
deliver or cause to be delivered and released to the Custodian the following
original documents (collectively, the “Purchased Asset File”), pertaining to each of the
Purchased Assets identified in the Custodial Delivery delivered therewith,
together with any other documentation in respect of such Purchased Asset
requested by Buyer, in Buyer’s sole but good faith discretion:

With respect to each
Purchased Asset that is a Senior Mortgage Loan or Accommodation Loan:

(i)            The original Mortgage
Note (and if applicable, one or more allonges) bearing all intervening
endorsements, endorsed “Pay to the order of          
without recourse” and signed in the name of the last endorsee (the “Last Endorsee”) by an
authorized Person (in the event that the Purchased Asset was acquired by the
Last Endorsee in a merger, the signature must be in the following form:  “[Last Endorsee], successor by merger to
[name of predecessor]”; in the event that the Purchased Asset was acquired or
originated by the Last Endorsee while doing business under another name, the
signature must be in the following form: 
“[Last Endorsee], formerly known as [previous name]”).

(ii)           An original of any
guarantee executed in connection with the Mortgage Note (if any).

(iii)          The original Mortgage
with evidence of recording thereon, or a copy thereof together with an officer’s
certificate of Seller certifying that to Seller’s knowledge such represents a
true and correct copy of the original and, in the case of an Eligible Asset
originated by Seller that such original has been submitted for recordation in
the

 39
 

 

appropriate governmental
recording office of the jurisdiction where the underlying real estate directly
or indirectly securing or supporting such Purchased Asset is located.

(iv)          The originals of all
assumption, modification, consolidation or extension of mortgage agreements
with evidence of recording thereon, or copies thereof together with an officer’s
certificate of Seller certifying that, to Seller’s knowledge such represent
true and correct copies of the originals and, in the case of an Eligible Asset
originated by Seller that such originals have each been submitted for
recordation in the appropriate governmental recording office of the
jurisdiction where the underlying real estate directly or indirectly securing
or supporting such Purchased Asset is located.

(v)           The original Assignment
of Mortgage in blank for each Purchased Asset, in form and substance acceptable
for recording and otherwise acceptable to Buyer and signed in the name of the
Last Endorsee (in the event that the Purchased Asset was acquired by the Last
Endorsee in a merger, the signature must be in the following form:  “[Last Endorsee], successor by merger to
[name of predecessor]”; in the event that the Purchased Asset was acquired or
originated while doing business under another name, the signature must be in
the following form: “[Last Endorsee], formerly known as [previous name]”).

(vi)          The originals of all
intervening assignments of mortgage with evidence of recording thereon, or
copies thereof together with an officer’s certificate of Seller certifying that
to the knowledge of Seller such represent true and correct copies of the
originals and, if such Eligible Asset was originated by Seller, that such originals
have each been submitted for recordation in the appropriate governmental
recording office of the jurisdiction where the underlying real estate directly
or indirectly securing or supporting such Purchased Asset is located.

(vii)         The original attorney’s
opinion of title and abstract of title or the original mortgagee title
insurance policy, or if the original mortgagee title insurance policy has not
been issued, the irrevocable marked commitment to issue the same.

(viii)        The original of any
security agreement, chattel mortgage or equivalent document executed in
connection with the Purchased Asset.

(ix)          The original assignment
of leases and rents, if any, with evidence of recording thereon, or a copy
thereof together with an officer’s certificate of Seller, certifying that to
the knowledge of Seller such copy represents a true and correct copy of the
original and, in the case of any Eligible Asset originated by Seller, that such
original has been submitted for recordation in the appropriate governmental
recording office of the jurisdiction where the underlying real estate directly
or indirectly securing or supporting such Purchased Asset is located.

(x)      The originals of all
intervening assignments of assignment of leases and rents, if any, or copies
thereof, with evidence of recording thereon.

(xi)     A copy of the UCC financing
statements, certified as true and correct by Seller, and all necessary UCC
continuation statements with evidence of filing thereon or

 40
 

 

copies thereof certified
by Seller that such financing statements have been sent for filing, and UCC
assignments, which UCC assignments shall be in form and substance acceptable
for filing.

(xii)         An environmental
indemnity agreement (if any).

(xiii)        An omnibus assignment in
blank (if any).

(xiv)        A disbursement letter from
the Mortgagor to the original mortgagee (if any).

(xv)         Mortgagor’s certificate
or title affidavit (if any).

(xvi)        A survey of the underlying
real estate directly or indirectly securing or supporting such Purchased Asset
(if any) as accepted by the title company for issuance of the Title Policy.

(xvii)       A copy of the Mortgagor’s
opinion of counsel (if any).

(xviii)      An assignment of permits,
contracts and agreements (if any).

(xix)         If the underlying
Purchased Asset is an Accommodation Loan, a non-consolidation opinion at the
reasonable request of Buyer, in form and substance acceptable to Buyer, from
independent outside counsel to Seller that is also acceptable to Buyer.

With respect to each
Purchased Asset that is a Mezzanine Loan:

(i)       The original Mezzanine Note
(and if applicable, one or more allonges) signed in connection with the
Purchased Asset bearing all intervening endorsements, endorsed “Pay to the
order of            without
recourse” and signed in the name of the Last Endorsee by an authorized Person
(in the event that the Mezzanine Note was acquired by the Last Endorsee in a
merger, the signature must be in the following form:  “[Last Endorsee], successor by merger to
[name of predecessor]”; in the event that the Purchased Asset was acquired or
originated by the Last Endorsee while doing business under another name, the
signature must be in the following form: 
“[Last Endorsee], formerly known as [previous name]”).

(ii)      The original of the loan
agreement and the guarantee, if any, executed in connection with the Purchased
Asset.

(iii)     The original intercreditor or
loan coordination agreement, if any, executed in connection with the Purchased
Asset.

(iv)    The original security
agreement executed in connection with the Purchased Asset.

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(v)           Copies of all documents
relating to the formation and organization of the borrower of such Purchased
Asset, together with all consents and resolutions delivered in connection with
such borrower’s obtaining the Purchased Asset.

(vi)          All other documents and
instruments evidencing, guaranteeing, insuring or otherwise constituting or
modifying or otherwise affecting such Purchased Asset, or otherwise executed or
delivered in connection with, or otherwise relating to, such Purchased Asset,
including all documents establishing or implementing any lockbox pursuant to
which Seller is entitled to receive any payments from cash flow of the
underlying real property.

(vii)         The assignment of
Purchased Asset sufficient to transfer to Buyer all of Seller’s rights, title
and interest in and to the Purchased Asset.

(viii)        A copy of the borrower’s
opinion of counsel (if any).

(ix)          A copy of the UCC
financing statements, certified as true and correct by Seller, and all
necessary UCC continuation statements with evidence of filing thereon or copies
thereof and in the case of any Eligible Asset originated by Seller, a
certification that such financing statements have been sent for filing, and UCC
assignments, which UCC assignments shall be in form and substance acceptable for
filing.

(x)           The original
certificates representing the pledged equity interests (if any).

(xi)          Stock powers (or their
equivalent) relating to each pledged equity interest, executed in blank, if an
original stock certificate (or its equivalent) is provided.

(xii)         Assignment of any
agreements among equity interest holders or other material contracts.

(xiii)        If no original stock
certificate (or its equivalent) is provided, evidence (which may be an officer’s
certificate confirming such circumstances) that the pledged ownership interests
have been transferred to, or otherwise made subject to a first priority
security interest in favor of, Seller.

With respect to any underlying Purchased Asset that is
an Accommodation Loan, the Buyer and Seller hereby agree and acknowledge that
all loan documents evidencing such Accommodation Loan shall be based on form
loan documents provided by Buyer and approved by Seller, and reflect terms and
conditions acceptable to Buyer in its sole discretion.

With respect to each
Purchased Asset that is a Junior Interest:

(i)            with respect to a B-Note,
the original Mortgage Note and guarantee described in the second paragraph of
this Article 7(b), and with respect to a B-Note or a junior
participation interest, to the extent applicable, a copy of all of the
documents described in clauses (iii), (iv), (vii), (viii), (ix), (x), (xi),
(xii), (xiii), (xiv), (xv), (xvi), (xvii) and (xviii) of the second paragraph
of this Article 7(b) with respect to a Purchased Asset;

 42
 

 

(ii)           with respect to a junior
participation, the original participation certificate, if any, together with
the original of any participation agreement, intercreditor agreement and/or
servicing agreement executed in connection with the Purchased Asset; and

(iii)          the assignment of Purchased
Asset sufficient to transfer to Buyer all of Seller’s rights, title and
interest in and to the Purchased Asset.

With respect to each
Purchased Asset that is a CMBS or a Synthetic CMBS:

(i)            With respect to (A)
any CMBS or Synthetic CMBS that is in physical form, the original certificate,
bond or other physical form of such CMBS or Synthetic CMBS, which shall
(1) be endorsed (either on the face thereof or pursuant to a separate
allonge) by the most recent endorsee prior to Seller, without recourse, to the
order of Seller and further reflect a complete, unbroken chain of endorsement
from the originator to Seller and (2) be accompanied by a separate allonge
pursuant to which Seller has endorsed such certificate, without recourse, in
blank, or, (B) with respect to any CMBS or Synthetic CMBS registered with DTC,
evidence of re-registration to the securities intermediary in Buyer’s name on
behalf of Buyer;

(ii)           true and correct copies
of the pooling and servicing agreement or indenture and all other material documents
(including, without limitation, opinions of counsel) or agreements related to
the creation or issuance of the CMBS or Synthetic CMBS or otherwise affecting
the rights (including, without limitation, the security interests) of any
holder thereof;

(iii)          to the extent in Seller’s
possession, as applicable, true and correct copies of any assignment,
assumption, modification, consolidation or extension made prior to the Purchase
Date in respect of any document or agreement referred to in clause (ii) above,
in each case, if the document or agreement being assigned, assumed, modified,
consolidated or extended is recordable, with evidence of recording thereon
(unless the particular item has not been returned from the applicable recording
office);

(iv)          as applicable, an
original assignment of each agreement referred to in clause (iii) above, in
recordable form if the agreement being assigned is a recordable document,
executed in blank by Seller;

(v)           with respect to any
CMBS or Synthetic CMBS that is in physical form, a certificate from the
applicable record keeper that as of the Purchase Date Buyer shall be the
registered holder of the CMBS or Synthetic CMBS;

(vi)          a servicer and/or
trustee notice; and

(vii)         any other documents that
Buyer may request Seller to deliver to Custodian from time to time with respect
to any CMBS or Synthetic CMBS.

With respect to each
Purchased Asset that is a CRE CDO:

 43
 

 

(i)            With respect to any
(A) CRE CDO that is in physical form, the original certificate, bond or other
physical form of such CRE CDO, which shall (1) be endorsed (either on the
face thereof or pursuant to a separate allonge) by the most recent endorsee
prior to Seller, without recourse, to the order of Seller and further reflect a
complete, unbroken chain of endorsement from the originator to Seller and
(2) be accompanied by a separate allonge pursuant to which Seller has
endorsed such certificate, without recourse, in blank, or, (B) with respect to
any CRE CDO registered with DTC, evidence of re-registration to the securities
intermediary in Buyer’s name on behalf of Buyer;

(ii)           true and correct copies
of the indenture and all other material documents (including, without
limitation, opinions of counsel) or agreements related to the creation or
issuance of the CRE CDO or otherwise affecting the rights (including, without
limitation, the security interests) of any holder thereof;

(iii)          to the extent in Seller’s
possession, as applicable, true and correct copies of any assignment,
assumption, modification, consolidation or extension made prior to the Purchase
Date in respect of any document or agreement referred to in clause (ii) above,
in each case, if the document or agreement being assigned, assumed, modified,
consolidated or extended is recordable, with evidence of recording thereon
(unless the particular item has not been returned from the applicable recording
office);

(iv)          as applicable, an
original assignment of each agreement referred to in clause (iii) above, in
recordable form if the agreement being assigned is a recordable document,
executed in blank by Seller;

(v)           with respect to any CRE
CDO that is in physical form, a certificate from the applicable record keeper
that as of the Purchase Date Buyer shall be the registered holder of the CRE
CDO;

(vi)          copies of any notices,
distributions, consents or other documents received by Seller relating to
clause (v) above;

(vii)         a servicer and/or trustee
notice; and

(viii)        any other documents that
Buyer may request Seller to deliver to Custodian from time to time with respect
to any CRE CDO.

With respect to each Purchased Asset that is of the
type described in clause (viii) of the definition of Eligible Asset:  any of the documentation referred to above in
this Article 7(b) or other documentation with respect to such
Eligible Asset that is determined by Buyer to be necessary to effectuate the
sale, transfer, conveyance and assignment of such Eligible Asset.

From time to time, Seller shall forward to the
Custodian additional documents (originals or copies) evidencing any assumption,
modification, consolidation or extension of a Purchased Asset approved in
accordance with the terms of this Agreement, and upon receipt of any such other
documents, the Custodian shall hold such other documents as Buyer shall request
from time to time.  With respect to any
documents that have been delivered or are being delivered to recording offices
for recording and have not been returned to Seller in time to permit their

 44
 

 

delivery hereunder at the
time required, in lieu of delivering such original documents, Seller shall
deliver to Buyer a true copy thereof with an officer’s certificate certifying
that, to the knowledge of Seller such copy is a true, correct and complete copy
of the original, which has been transmitted for recording.  Seller shall deliver such original documents
to the Custodian promptly when they are received.  With respect to all of the Purchased Assets
delivered by Seller to Buyer or its designee (including the Custodian), Seller
shall execute an omnibus power of attorney substantially in the form of Exhibit
V attached hereto irrevocably appointing Buyer its attorney-in-fact
with full power, upon and during the continuation of an Event of Default to
(i) complete and record each Assignment of Mortgage, (ii) complete the
endorsement of each Mortgage Note or Mezzanine Note, (iii) take any action
(including exercising voting and/or consent rights) with respect to CMBS or
Synthetic CMBS, Junior Interests, or intercreditor or participation agreements,
and (iv) take such other steps as may be necessary or desirable to enforce
Buyer’s rights against, under or with respect to such Purchased Assets and the
related Purchased Asset Files and the Servicing Records; provided that Buyer
shall not exercise such power of attorney unless and until the occurrence and
continuation of an Event of Default. 
Buyer shall deposit the Purchased Asset Files representing the Purchased
Assets, or direct that the Purchased Asset Files be deposited directly, with
the Custodian.  The Purchased Asset Files
shall be maintained in accordance with the Custodial Agreement.  Any Purchased Asset Files not delivered to
Buyer or its designee (including the Custodian) are and shall be held in trust
by Seller or its designee for the benefit of Buyer as the owner thereof.  Seller or its designee shall maintain a copy
of the Purchased Asset File and the originals of the Purchased Asset File not
delivered to Buyer or its designee.  The
possession of the Purchased Asset File by Seller or its designee is at the will
of Buyer for the sole purpose of servicing the related Purchased Asset, and
such retention and possession by Seller or its designee is in a custodial
capacity only.  The books and records
(including, without limitation, any computer records or tapes) of Seller or its
designee shall be marked appropriately to reflect clearly the sale of the
related Purchased Asset to Buyer.  Seller
or its designee (including the Custodian) shall release its custody of the
Purchased Asset File only in accordance with written instructions from Buyer,
unless such release is required as incidental to the servicing of the Purchased
Assets, is in connection with a repurchase of any Purchased Asset by Seller or
as otherwise required by law.

(c)           Notwithstanding the
provisions of Article 7(b), in the case of any Eligible Asset not
originated by a Seller or an Affiliate of a Seller, Seller shall deliver with
the Preliminary Due Diligence Package such documents as Seller obtains from the
Person that sells the Eligible Asset to Seller together with a list of the
documents that Seller has not delivered that are otherwise required in
accordance with Article 7(b) hereof; provided, however
that receipt of such list shall neither act as a waiver of the Buyer’s right
hereunder to request any document, opinion or certificate in connection with
its due diligence nor require the Buyer to purchase any Eligible Asset; provided,
further, that in the event Buyer purchases any Eligible Asset after
waiving the delivery by Seller of any documents otherwise required to be delivered
pursuant to the terms of this Agreement, any subsequent request by Buyer to
require the delivery of such documents shall be made in good faith and the
previous waiver of the delivery of such documents shall not act as a waiver of
Buyer’s right to reduce the Market Value of the related Purchased Asset in its
sole and absolute discretion, such discretion to be exercised in good faith, as
a result of Seller’s failure to deliver such documents.

 45
 

 

(d)           Upon the occurrence and
during the continuation of an Event of Default or with respect to the exercise
of any voting or corporate rights with respect to the Purchased Assets that
could materially impair the Market Value, and in each case subject to the
provisions of the Purchased Asset Documents, Buyer shall be entitled to
exercise all voting and corporate rights with respect to the Purchased Assets
without regard to Seller’s instructions (including, but not limited to, if an
Act of Insolvency shall occur with respect to Seller, to the extent Seller
controls or is entitled to control selection of any servicer, Buyer may
transfer any or all of such servicing to an entity satisfactory to Buyer).

(e)           Notwithstanding the
provisions of Article 7(b) above requiring the execution of the
Custodial Delivery and corresponding delivery of the Purchased Asset File to
the Custodian on or prior to the related Purchase Date, with respect to each
Transaction involving a Purchased Asset that is identified in the related
Confirmation as a “Table Funded” Transaction, Seller shall, in lieu of
effectuating the delivery of all or a portion of the Purchased Asset File on or
prior to the related Purchase Date, (i) deliver to the Custodian by facsimile
on or before the related Purchase Date for the Transaction (A) the promissory
note(s), original stock certificate or participation certificate in favor of
Seller evidencing the making of the Purchased Asset, with Seller’s endorsement
of such instrument to Buyer, (B) such other components of the Purchased Asset
File as Buyer may require on a case by case basis with respect to the
particular Transaction, and (C) evidence satisfactory to Buyer that all
documents necessary to perfect Seller’s (and, by means of assignment to Buyer
on the Purchase Date, Buyer’s) interest in the Collateral for the Purchased
Asset, and (ii) not later than the third (3rd) Business Day following the
Purchase Date, deliver to Buyer the Custodial Delivery and to the Custodian the
entire Purchased Asset File.

ARTICLE 8.

SALE, TRANSFER, HYPOTHECATION OR PLEDGE OF PURCHASED ASSETS

(a)           Title to all Purchased
Assets shall pass to Buyer on the applicable Purchase Date, and Buyer shall
have free and unrestricted use of all Purchased Assets, subject, however, to
the terms of this Agreement.  Nothing in
this Agreement or any other Transaction Document shall preclude Buyer from
engaging in repurchase transactions with the Purchased Assets or otherwise
selling, transferring, pledging, repledging, hypothecating, or rehypothecating
the Purchased Assets, but no such transaction shall relieve Buyer of its
obligations to transfer the identical Purchased Assets to Seller pursuant to Article
3 of this Agreement or of Buyer’s obligation to credit or pay Income to, or
apply Income to the obligations of, Seller pursuant to Article 5 hereof;
(ii) the Purchased Assets shall at all times be subject to the terms and
conditions of this Agreement and the terms of the Purchased Asset Documents;
and (iii) any such sale, transfer, pledge, repledge, hypothecation or
rehypothecation will not result in any internal costs to Seller.

(b)           Nothing contained in
this Agreement or any other Transaction Document shall obligate Buyer to
segregate any Purchased Assets delivered to Buyer by Seller.  Notwithstanding anything to the contrary in
this Agreement or any other Transaction Document, no Purchased Asset shall
remain in the custody of Seller or an Affiliate of Seller, except to the extent
permitted by Buyer in accordance with Article 7(b) hereof.

 46
 

 

ARTICLE 9.

EARLY TERMINATION

(a)           If (A) the LIBO Rate
increases pursuant to the definition thereof as a result of an increase in
Buyer’s reserve requirement, (B) an Act of Insolvency shall occur with respect
to Buyer or an Affiliated Hedge Counterparty, or (C) Seller is required to pay
any amounts to Buyer pursuant to Articles 3(k), 3(m) or 3(n),
then Seller may declare an “Early
Termination Event”.

(b)           The party declaring the
Early Termination Event shall notify the other party (such notice, an “Early Termination Notice”)
that it has elected to terminate this Agreement.  Regardless of which party declares the Early
Termination, Seller shall designate a date no later than ten (10) days from the
date of the Early Termination Notice (the “Early Termination Date”).

(c)           Notwithstanding any
other provision of this Agreement, unless an Event of Default (other than an
Event of Default pursuant to Article 13(a)(xv)) has occurred and is
continuing, Seller shall not be required to (i) pay any Exit Fee in connection
with the repurchase of any Eligible Assets during, or (ii) pay any non-usage
fee for, in each case, any period following delivery of written notice by
Seller to Buyer or by Buyer to Seller of an Early Termination Event.

ARTICLE 10.

REPRESENTATIONS AND WARRANTIES

(a)           Seller represents and
warrants that (i) it is duly authorized to execute and deliver this Agreement,
to enter into Transactions contemplated hereunder and to perform its
obligations hereunder and has taken all necessary action to authorize such
execution, delivery and performance, (ii) it will engage in such Transactions
as principal (or, if agreed in writing, in the form of an annex hereto or
otherwise, in advance of any Transaction by the other party hereto, as agent
for a disclosed principal), (iii) the person signing this Agreement on its
behalf is duly authorized to do so on its behalf (or on behalf of any such
disclosed principal), (iv) it has obtained all authorizations of any
governmental body required in connection with this Agreement and the
Transactions hereunder to the extent that the failure to obtain such
authorizations would cause a Material Adverse Effect on Seller’s ability to
perform its obligations hereunder and such authorizations are in full force and
effect and (v) the execution, delivery and performance of this Agreement and
the Transactions hereunder will not violate any law, ordinance or rule
applicable to it or its organizational documents or any agreement by which it
is bound or by which any of its assets are affected to the extent that such
violation would have a Material Adverse Effect on its ability to perform its
obligations hereunder.  On the Purchase
Date for any Transaction, Seller shall be deemed to repeat all the foregoing
representations made by it.

(b)           In addition to the
representations and warranties in subsection (a) above, Seller represents and
warrants to Buyer as of the date of this Agreement and will be deemed to
represent and warrant to Buyer as of the Purchase Date for the purchase of any
Purchased Assets by Buyer from Seller and any Transaction thereunder and
covenants that at all times while this Agreement and any Transaction thereunder
is in effect, unless otherwise stated herein:

 47

 

(i)            Organization.  Seller is duly organized, validly existing
and in good standing under the laws and regulations of the state of Seller’s
incorporation and is duly licensed, qualified, and in good standing in every
state where such licensing or qualification is necessary for the transaction of
Seller’s business, except where failure to so qualify could not be reasonably
likely to have a Material Adverse Effect. 
Seller has the power to own and hold the assets it purports to own and
hold, and to carry on its business as now being conducted and proposed to be
conducted, and has the power to execute, deliver, and perform its obligations
under this Agreement and the other Transaction Documents.

(ii)           Due Execution; Enforceability.  The Transaction Documents have been or will
be duly executed and delivered by Seller, for good and valuable
consideration.  The Transaction Documents
constitute the legal, valid and binding obligations of Seller, enforceable
against Seller in accordance with their respective terms subject to bankruptcy,
insolvency, and other limitations on creditors’ rights generally and to
equitable principles.

(iii)          Ability to Perform.  Seller does not believe, nor does it have any
reason or cause to believe, that it cannot perform each and every covenant
contained in the Transaction Documents applicable to it to which it is a party.

(iv)          Non-Contravention.  Neither the execution and delivery of the
Transaction Documents, nor consummation by Seller of the transactions
contemplated by the Transaction Documents (or any of them), nor compliance by
Seller with the terms, conditions and provisions of the Transaction Documents
(or any of them) will conflict with or result in a breach of any of the terms,
conditions or provisions of (i) the organizational documents of Seller, (ii)
any contractual obligation to which Seller is now a party or the rights under
which have been assigned to Seller or the obligations under which have been
assumed by Seller or to which the assets of Seller are subject or constitute a
default thereunder, or result thereunder in the creation or imposition of any
lien upon any of the assets of Seller, other than pursuant to the Transaction
Documents, (iii) any judgment or order, writ, injunction, decree or demand of
any court applicable to Seller, or (iv) any applicable Requirement of Law, in
the case of clauses (ii)-(iv) above, to the extent that such conflict or
breach would have a Material Adverse Effect upon Seller’s ability to perform
its obligations hereunder.

(v)           Litigation; Requirements of Law.  As of the date hereof and as of the Purchase
Date for any Transaction hereunder, there is no action, suit, proceeding,
investigation, or arbitration pending or, to the best knowledge of Seller,
threatened against Seller or any of its assets, nor is there any action, suit,
proceeding, investigation, or arbitration pending or threatened against Seller
that may result in any Material Adverse Effect. 
Neither Seller nor either Guarantor is in default in any material
respect with respect to any judgment, order, writ, injunction, decree, rule or
regulation of any arbitrator or Governmental Authority.

(vi)          No Broker.  Seller has not dealt with any broker,
investment banker, agent, or other Person (other than Buyer or an Affiliate of
Buyer) who may be entitled to any

 48
 

 

commission or compensation in connection with
the sale of Purchased Assets pursuant to any of the Transaction Documents.

(vii)         Good Title to Purchased Assets.  Immediately prior to the purchase of any
Purchased Assets by Buyer from Seller, such Purchased Assets are free and clear
of any lien, encumbrance or impediment to transfer (including any “adverse claim” as
defined in Article 8-102(a)(1) of the UCC) with the exception of (A)
liens to be released simultaneously with the sale to Buyer hereunder and (B)
liens granted by Seller in favor of the counterparty to any Hedging
Transaction, solely to the extent such liens are expressly subordinate to the
rights and interests of Buyer hereunder, and Seller is the record and
beneficial owner of and has good and marketable title to and the right to sell
and transfer such Purchased Assets to Buyer and, upon transfer of such
Purchased Assets to Buyer, Buyer shall be the owner of such Purchased Assets
free of any adverse claim.  In the event
the related Transaction is recharacterized as a secured financing of the
Purchased Assets, the provisions of this Agreement are effective to create in
favor of Buyer a valid security interest in all rights, title and interest of
Seller in, to and under the Purchased Assets and Buyer shall have a valid,
perfected first priority security interest in the Purchased Assets (and without
limitation on the foregoing, Buyer, as entitlement holder, shall have a “security
entitlement” to the Purchased Assets).

(viii)        No Margin Deficit; No Defaults.  No Margin Deficit exists and no Default or
Event of Default has occurred or exists under or with respect to the
Transaction Documents.

(ix)           Authorized Representatives.  The duly authorized representatives of Seller
are listed on, and true signatures of such authorized representatives are set
forth on, Exhibit II attached to this Agreement.

(x)            Representations and Warranties Regarding
Purchased Assets; Delivery of Purchased Asset File.

(A)          As of the date hereof, Seller has not
assigned, pledged, or otherwise conveyed or encumbered any Purchased Asset to
any other Person, and immediately prior to the sale of such Purchased Asset to
Buyer, Seller was the sole owner of such Purchased Asset and had good and
marketable title thereto, free and clear of all liens, in each case except for
(1) liens to be released simultaneously with the sale to Buyer hereunder and
(2) liens granted by Seller in favor of the counterparty to any Hedging
Transaction, solely to the extent such liens are expressly subordinate to the
rights and interests of Buyer hereunder.

(B)           The provisions of this Agreement and the
related Confirmation are effective to either constitute a sale of Purchased
Items to Buyer or to create in favor of Buyer a legal, valid and enforceable security
interest in all right, title and interest of Seller in, to and under the
Purchased Items.

(C)           Upon receipt by the Custodian of each
Mezzanine Loan note, B-Note or Junior Interest certificate, endorsed in blank
by a duly authorized officer

 49
 

 

of Seller, and receipt by Seller of the applicable Purchase Price,
either a purchase shall have been completed by Buyer of such Mezzanine Loan
note, B-Note or Junior Interest certificate, as applicable, or Buyer shall have
a valid and fully perfected first priority security interest in all right,
title and interest of Seller in the Purchased Items described therein.

(D)          Each of the representations and warranties
made in respect of the Purchased Assets pursuant to Exhibit VI are true,
complete and correct, except to the extent disclosed in a Requested Exceptions
Report.

(E)           Upon the filing of financing statements on
Form UCC-1 naming Buyer as “Secured Party”, Seller as “Debtor”
and describing the Purchased Items, in the jurisdictions and recording offices
listed on Exhibit XIII attached hereto, the security interests granted
hereunder in that portion of the Purchased Items which can be perfected by
filing under the Uniform Commercial Code will constitute fully perfected
security interests under the Uniform Commercial Code in all right, title and
interest of Seller in, to and under such Purchased Items.

(F)           Upon execution and delivery of the Control
Agreement, Buyer shall either be the owner of, or have a valid and fully
perfected first priority security interest in, the “investment property” and
all “deposit accounts” (each as defined in the Uniform Commercial Code)
comprising Purchased Items or any after-acquired property related to such
Purchased Items.  Except to the extent
disclosed in a Requested Exceptions Report, Seller or its designee is in
possession of a complete, true and accurate Purchased Asset File with respect
to each Purchased Asset, except for such documents the originals of which have
been delivered to the Custodian.

(xi)           Adequate Capitalization; No Fraudulent
Transfer.  Seller has, as of such
Purchase Date, adequate capital for the normal obligations foreseeable in a
business of its size and character and in light of its contemplated business
operations.  Seller is generally able to
pay, and as of the date hereof is paying, its debts as they come due.  Seller has not become, or is presently,
financially insolvent nor will Seller be made insolvent by virtue of Seller’s
execution of or performance under any of the Transaction Documents within the
meaning of the bankruptcy laws or the insolvency laws of any jurisdiction.  Seller has not entered into any Transaction
Document or any Transaction pursuant thereto in contemplation of insolvency or
with intent to hinder, delay or defraud any creditor.

(xii)          No Conflicts or Consents.  Neither the execution and delivery of this
Agreement and the other Transaction Documents by Seller, nor the consummation
of any of the transactions by it herein or therein contemplated, nor compliance
with the terms and provisions hereof or with the terms and provisions thereof,
will contravene or conflict with or result in the creation or imposition of (or
the obligation to create or impose) any lien upon any of the property or assets
of Seller pursuant to the terms of any indenture, mortgage, deed of trust, or
other agreement or instrument to which Seller is a party or by which Seller may
be bound, or to which Seller may be subject. 
No consent, approval, authorization, or order of any third party is
required in connection with the execution and

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delivery by Seller of the Transaction
Documents to which it is a party or to consummate the transactions contemplated
hereby or thereby which has not already been obtained.

(xiii)         Governmental Approvals.    No
order, consent, approval, license, authorization or validation of, or filing,
recording or registration with, or exemption by, any Governmental Authority is
required to authorize, or is required in connection with, (i) the execution,
delivery and performance of any Transaction Document to which Seller is or will
be a party, (ii) the legality, validity, binding effect or enforceability of
any such Transaction Document against Seller or (iii) the consummation of the
transactions contemplated by this Agreement (other than the filing of certain
financing statements in respect of certain security interests).

(xiv)        Organizational Documents.  Seller has delivered to Buyer certified
copies of its organization documents, together with all amendments thereto, if
any.

(xv)         No Encumbrances.  There are (i) no outstanding rights, options,
warrants or agreements on the part of Seller for a purchase, sale or issuance,
in connection with the Purchased Assets, and (ii) no agreements on the part of
Seller to issue, sell or distribute the Purchased Assets except as contemplated
by the Transaction Documents.

(xvi)        Federal Regulations.  Seller is not an “investment company,” or a
company “controlled by an investment company,” within the meaning of the
Investment Company Act of 1940, as amended. 
Seller is not a “holding company,” or a “subsidiary company of a holding
company,” or an “affiliate” of either a “holding company” or a “subsidiary
company of a holding company,” as such terms are defined in the Public Utility
Holding Company Act of 2005, as amended.

(xvii)       Taxes. 
Seller has filed or caused to be filed all tax returns that, to the
knowledge of Seller, would be delinquent if they had not been filed on or
before the date hereof and has paid all taxes shown to be due and payable on or
before the date hereof on such returns or on any assessments made against it or
any of its property and all other taxes, fees or other charges imposed on it
and any of its assets by any Governmental Authority except for any such taxes
as (A) are being appropriately contested in good faith by appropriate
proceedings diligently conducted and with respect to which adequate reserves
have been provided in accordance with GAAP or (B) are de minimis
in amount; no tax liens have been filed against any of Seller’s assets and, no
claims are being asserted with respect to any such taxes, fees or other
charges.

(xviii)      Judgments/Bankruptcy.  Except as disclosed in writing to Buyer,
there are no judgments against Seller unsatisfied of record or docketed in any
court located in the United States of America and no Act of Insolvency has ever
occurred with respect to Seller.

(xix)         Solvency.  Neither the Transaction Documents nor any
Transaction thereunder are entered into in contemplation of insolvency or with
intent to hinder, delay or defraud any of Seller’s creditors.  The transfer of the Purchased Assets subject
hereto and the obligation to repurchase such Purchased Assets is not undertaken
with the intent

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to hinder, delay or defraud any of Seller’s
creditors.  As of the Repurchase Date,
Seller is not insolvent within the meaning of 11 U.S.C. Section 101(32) or any
successor provision thereof and the transfer and sale of the Purchased Assets
pursuant hereto and the obligation to repurchase such Purchased Asset (i) will
not cause the liabilities of Seller to exceed the assets of Seller, (ii) will
not result in Seller having unreasonably small capital, and (iii) will not
result in debts that would be beyond Seller’s ability to pay as the same
mature.  No petition in bankruptcy has
been filed against Seller in the last ten (10) years, and Seller has not in the
last ten (10) years made an assignment for the benefit of creditors or taken
advantage of any debtors relief laws. 
The Seller has only entered into agreements on terms that would be
considered arm’s length and otherwise on terms consistent with other similar
agreements in the market.

(xx)          Use of Proceeds; Margin Regulations.  All proceeds of each Transaction shall be
used by Seller for purposes permitted under Seller’s governing documents, provided
that no part of the proceeds of any Transaction will be used by Seller to
purchase or carry any margin stock or to extend credit to others for the
purpose of purchasing or carrying any margin stock.  Neither the entering into of any Transaction
nor the use of any proceeds thereof will violate, or be inconsistent with, any
provision of Regulation T, U or X of the Board of Governors of the Federal
Reserve System.

(xxi)         Full and Accurate Disclosure.  No information contained in the Transaction
Documents regarding the Seller, its Affiliates, or any of the Seller’s assets,
or any written statement furnished by or on behalf of Seller pursuant to the
terms of the Transaction Documents, contains any untrue statement of a material
fact or omits to state a material fact necessary to make the statements
contained herein or therein not misleading in light of the circumstances under
which they were made.

(xxii)        Financial Information.  All financial data concerning Seller and the
Purchased Assets that has been delivered by or on behalf of Seller to Buyer is
true, complete and correct in all material respects.  All financial data concerning Seller has been
prepared fairly in accordance with GAAP. 
All financial data concerning the Purchased Assets has been prepared in
accordance with standard industry practices. 
Since the delivery of such data, except as otherwise disclosed in
writing to Buyer, there has been no change in the financial position of Seller
or the Purchased Assets, or in the results of operations of Seller, which
change is reasonably likely to have in a Material Adverse Effect on Seller.

(xxiii)       Hedging Transactions.  To the actual knowledge of Seller, as of the
Purchase Date for any Purchased Asset that is subject to a Hedging Transaction,
each such Hedging Transaction is in full force and effect in accordance with
its terms, each counterparty thereto is an Affiliated Hedge Counterparty or a
Qualified Hedge Counterparty, and no “Termination Event”, “Event of Default”, “Potential
Event of Default” or any similar event, however denominated, has occurred and
is continuing with respect thereto.

(xxiv)       Selection Process.  The Purchased Assets under this Agreement
were not selected by Seller in a manner different from the manner in which
Seller selects assets

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with regard to any other facilities to which it is a party or, in any
event, so as to affect adversely the interests of Buyer.

(xxv)        Servicing Agreements.  Seller has delivered to Buyer all Servicing
Agreements pertaining to the Purchased Assets and to the actual knowledge of
Seller, as of the date of this Agreement and as of the Purchase Date for the
purchase of any Purchased Assets subject to a Servicing Agreement, each such
Servicing Agreement is in full force and effect in accordance with its terms
and no default or event of default exists thereunder.

(xxvi)       No Reliance.  Seller has made its own independent decisions
to enter into the Transaction Documents and each Transaction and as to whether
such Transaction is appropriate and proper for it based upon its own judgment
and upon advice from such advisors (including without limitation, legal counsel
and accountants) as it has deemed necessary. 
Seller is not relying upon any advice from Buyer as to any aspect of the
Transactions, including without limitation, the legal, accounting or tax
treatment of such Transactions.

(xxvii)      Patriot Act.  Seller is in compliance, in all material
respects, with the (i) the Trading with the Enemy Act, as amended, and each of
the foreign assets control regulations of the United States Treasury Department
(31 CFR, Subtitle B, Chapter V, as amended) and any other applicable enabling
legislation or executive order relating thereto, and (ii) the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism (USA Patriot Act of 2001). 
No part of the proceeds of any Transaction will be used, directly or
indirectly, for any payments to any governmental official or employee,
political party, official of a political party, candidate for political office,
or anyone else acting in an official capacity, in order to obtain, retain or
direct business or obtain any improper advantage, in violation of the United
States Foreign Corrupt Practices Act of 1977, as amended.

(xxviii)     Environmental Matters.

(a)           No properties owned or
leased by Seller and no properties formerly owned or leased by Seller, its
predecessors, or any former Subsidiaries or predecessors thereof (the “Properties”),
contain, or have previously contained, any Materials of Environmental Concern
in amounts or concentrations which constitute or constituted a violation of, or
reasonably could be expected to give rise to liability under, Environmental
Laws that would have a Material Adverse Effect;

(b)           Seller is in compliance
with all applicable Environmental Laws, and there is no violation of any
Environmental Laws which reasonably would be expected to interfere with the
continued operations of Seller that would have a Material Adverse Effect;

(c)           Seller has not received
any notice of violation, alleged violation, non-compliance, liability or
potential liability under any Environmental

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Law that would have a Material Adverse
Effect, nor does Seller have knowledge that any such notice will be received or
is being threatened;

(d)           Materials of Environmental
Concern have not been transported or disposed by Seller in violation of, or in
a manner or to a location which reasonably would be expected to give rise to
liability under, any applicable Environmental Law, nor has Seller generated,
treated, stored or disposed of at, on or under any of the Properties in
violation of, or in a manner that reasonably would be expected to give rise to
liability under, any applicable Environmental Law that would have a Material
Adverse Effect;

(e)           No judicial proceedings
or governmental or administrative action is pending, or, to the knowledge of
Seller, threatened, under any Environmental Law which Seller is or will be
named as a party, nor are there any consent decrees or other decrees, consent
orders, administrative orders or other orders, or other administrative or
judicial requirements arising out of judicial proceedings or governmental or
administrative actions, outstanding under any Environmental Law to which Seller
is a party that would have a Material Adverse Effect;

(f)            There has been no
release or threat of release of Materials of Environmental Concern in violation
of or in amounts or in a manner that reasonably would be expected to give rise
to liability that would have a Material Adverse Effect under any Environmental
Law for which Seller may become liable; and

(g)           Each of the
representations and warranties set forth in the preceding clauses (A) through
(F) is true and correct with respect to each parcel of real property owned or
operated by Seller.

(xxix)       Insider. 
Seller 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. § 375(b) or in regulations
promulgated pursuant thereto) of Buyer, of a bank holding company of which
Buyer is a Subsidiary, or of any Subsidiary, of a bank holding company of which
Buyer is a Subsidiary, of any bank at which Buyer maintains a correspondent
account or of any lender which maintains a correspondent account with Buyer

(xxx)        Office of Foreign Assets Control.  Seller is not a person (i) whose property or
interest in property is blocked or subject to blocking pursuant to
Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property
and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or
Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) who engages in any dealings
or transactions prohibited by Section 2 of such executive order, or to the
best of Seller’s knowledge,  is otherwise
associated with any such person in any manner in violation of Section 2 of
such executive order, or (iii) on the current list of Specially Designated
Nationals and Blocked Persons

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or subject to the limitations or prohibitions under any other U.S.
Department of Treasury’s Office of Foreign Assets Control regulation or
executive order.

(xxxi)       Notice Address; Jurisdiction of Organization.  On the date of this Agreement, Seller’s
address for notices is as specified on Annex I. 
Seller’s jurisdiction of organization is Delaware.  The location where Seller keeps its books and
records, including all computer tapes and records relating to the Collateral
and Purchased Items, is its notice address. 
Seller may change its address for notices and for the location of its
books and records by giving Buyer written notice of such change.

(xxxii)      Ownership. 
Each Seller is and shall remain at all times a wholly owned subsidiary of
Dividend Capital Total Realty Operating Partnership, LP.

ARTICLE 11.

NEGATIVE COVENANTS OF SELLER

On and as of the date hereof and each Purchase Date
and until this Agreement is no longer in force with respect to any Transaction,
Seller shall not without the prior written consent of Buyer:

(a)           take any action that
would directly or indirectly impair or adversely affect Buyer’s title to the
Purchased Assets (other than as contemplated by the Transaction Documents);

(b)           transfer, assign,
convey, grant, bargain, sell, set over, deliver or otherwise dispose of, or
pledge or hypothecate, directly or indirectly, any interest in the Purchased
Assets (or any of them) to any Person other than Buyer, or engage in repurchase
transactions or similar transactions with respect to the Purchased Assets (or
any of them) with any Person other than Buyer (unless such Purchased Asset has
been repurchased) other than as contemplated by the Transaction Documents;

(c)           modify in any material
respect any Servicing Agreements to which it is a party, without the consent of
Buyer in its sole and absolute discretion;

(d)           create, incur or permit
to exist any lien, encumbrance or security interest in or on any of the
Purchased Assets, the other Collateral or Purchased Items, other than the
security interest granted by Seller pursuant to Article 6 of this
Agreement (unless such Purchased Asset has been repurchased);

(e)           create, incur, assume
or suffer to exist any Lien upon any of its property, assets or revenues,
whether now owned or hereafter acquired, except for the following, hereinafter
referred to as the “Permitted Liens”:

(i)            Liens
for taxes not yet due or which are being contested in good faith by appropriate
proceedings, provided that adequate reserves with respect thereto are
maintained on the books of the Borrower or its Subsidiaries, as the case may
be, in conformity with GAAP;

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(ii)           Liens
created pursuant to the Transaction Documents;

(iii)          Liens
created pursuant to or in connection with Other Warehouse Facilities on the
financial assets that are the subject of such Other Warehouse Facilities,
solely to secure the obligations of Seller under such Other Warehouse
Facilities; and

(iv)          Liens
on the rights of Seller created pursuant to or in connection with subscription
facilities under subscription agreements or other agreements related thereto,
including Seller’s rights to call capital from its investors;

(f)            enter into any
transaction of merger or consolidation or amalgamation, or liquidate, wind up
or dissolve itself (or suffer any liquidation, winding up or dissolution), sell
all or substantially all of its assets without the consent of Buyer in its sole
and absolute discretion;

(g)           consent or assent to
any amendment or supplement to, or termination of, any note, loan agreement, mortgage
or guarantee relating to the Purchased Assets or other material agreement or
instrument relating to the Purchased Assets other than in accordance with Article 28;

(h)           permit the
organizational documents or organizational structure of DCTRT Repo Holdco LLC,
TRT Lending LLC or DCTRT Securities Holdco LLC to be amended without (i) the
prior written consent of Buyer, granted or withheld in its sole and absolute
discretion, or (ii) the delivery to Buyer of a new non-consolidation opinion or
an opinion that such amendments have no effect on the non-consolidation opinion
delivered in connection with the execution of this Agreement;

(i)            admit any additional
members or partners in Seller;

(j)            acquire or maintain
any right or interest in any Purchased Asset or Underlying Mortgaged Property
that is senior to or pari passu with the rights and interests of Buyer therein
under this Agreement and the other Transaction Documents;

(k)           use any part of the
proceeds of any Transaction hereunder for any purpose which violates, or would
be inconsistent with, the provisions of Regulation T, U or X of the Board of
Governors of the Federal Reserve System;

(l)            [intentionally
omitted];

(m)          [intentionally omitted];

(n)           shall not, directly or
indirectly, permit the ratio of Dividend Capital Total Realty Trust Inc.’s
(i) Leverage (ii) to Net Assets, as each of such terms are defined
from time to time in the organizational documents of Dividend Capital Total
Realty Trust Inc., to exceed 3.00 to 1.00; or

(o)           enter into any Hedging
Transaction with any entity that is not an Affiliated Hedging Counterparty or a
Qualified Hedging Counterparty.

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ARTICLE 12.

AFFIRMATIVE COVENANTS OF SELLER

(a)           Seller shall promptly
notify Buyer of any material adverse change in its business operations and/or
financial condition; provided, however, that nothing in this Article
12 shall relieve Seller of its obligations under this Agreement.

(b)           Seller shall provide
Buyer with copies of such documents as Buyer may request evidencing the
truthfulness of the representations set forth in Article 10.

(c)           Seller (1) shall defend
the right, title and interest of Buyer in and to the Collateral and Purchased
Items against, and take such other action as is necessary to remove, the Liens,
security interests, claims and demands of all Persons (other than security
interests by or through Buyer) and (2) shall, at Buyer’s reasonable request,
take all action necessary to ensure that Buyer will have a first priority
security interest in the Purchased Assets subject to any of the Transactions in
the event such Transactions are recharacterized as secured financings.

(d)           Seller shall notify
Buyer and the Depository of the occurrence of any Default or Event of Default
with respect to Seller as soon as possible but in no event later than the
second (2nd) Business Day after obtaining actual knowledge of such event.

(e)           Seller shall cause the special
servicer rating of the special servicer with respect to all mortgage loans
underlying Purchased Assets to be no lower than “average” by Standard &
Poor’s Ratings Group to the extent Seller controls or is entitled to control
the selection of the special servicer. 
In the event the special servicer rating with respect to any Person
acting as special servicer for any mortgage loans underlying Purchased Assets
shall be below “average” by Standard & Poor’s Rating Group, or if an Act of
Insolvency occurs with respect to Seller or a Guarantor, Buyer shall be
entitled to transfer special servicing with respect to all Purchased Assets to
an entity satisfactory to Buyer, to the extent Seller controls or is entitled
to control the selection of the special servicer.

(f)            Seller shall promptly
(and in any event not later than two (2) Business Days following receipt)
deliver to Buyer (i) any notice of the occurrence of an event of default under
or report received by Seller pursuant to the Purchased Asset Documents; (ii)
any notice of transfer of servicing under the Purchased Asset Documents and
(iii) any other information with respect to the Purchased Assets that may be
requested by Buyer from time to time.

(g)           Seller will permit
Buyer or its designated representative to inspect Seller’s records with respect
to the Collateral and the Purchased Items and the conduct and operation of its
business related thereto upon reasonable prior written notice from Buyer or its
designated representative, at such reasonable times and with reasonable
frequency, and to make copies of extracts of any and all thereof, subject to
the terms of any confidentiality agreement between Buyer and Seller.  Buyer shall act in a commercially reasonable
manner in requesting and conducting any inspection relating to the conduct and
operation of Seller’s business.

(h)           If Seller shall at any
time become entitled to receive or shall receive any rights, whether in
addition to, in substitution of, as a conversion of, or in exchange for a
Purchased Asset, or otherwise in respect thereof, Seller shall accept the same
as Buyer’s agent, hold the

 57
 

 

same in trust for Buyer and
deliver the same forthwith to Buyer (or the Custodian, as appropriate) in the
exact form received, duly endorsed by Seller to Buyer, if required, together
with an undated bond power covering such certificate duly executed in blank to
be held by Buyer hereunder as additional collateral security for the
Transactions.  If any sums of money or
property so paid or distributed in respect of the Purchased Assets shall be
received by Seller, Seller shall, until such money or property is paid or
delivered to Buyer, hold such money or property in trust for Buyer, segregated
from other funds of Seller, as additional collateral security for the Transactions.

(i)            At any time from time
to time upon the reasonable request of Buyer, at the sole expense of Seller,
Seller will promptly and duly execute and deliver such further instruments and
documents and take such further actions as Buyer may request for the purposes
of obtaining or preserving the full benefits of this Agreement including the
first priority security interest granted hereunder and of the rights and powers
herein granted (including, among other things, filing such UCC financing
statements as Buyer may request).  If any
amount payable under or in connection with any of the Collateral or Purchased
Items shall be or become evidenced by any promissory note, other instrument or
chattel paper, such note, instrument or chattel paper shall be immediately delivered
to Buyer, duly endorsed in a manner satisfactory to Buyer, to be itself held as
a Purchased Item and/or Collateral, as applicable, pursuant to this Agreement,
and the documents delivered in connection herewith.

(j)            Seller shall provide,
or to cause to be provided, to Buyer the following financial and reporting
information:

(i)            Within forty-five (45) days after the last
day of each of the first three fiscal quarters in any fiscal year, consolidated
unaudited financial statements of Guarantors presented fairly in accordance
with GAAP including a statement of operations and a statement of changes in
cash flows for such quarter and statement of net assets as of the end of such
quarter, and certified as being true and correct by an officer’s certificate;

(ii)           Promptly after the end of each month, to the
extent provided by the applicable servicer, with respect to Eligible Assets
that are Eligible Loans, any and all certified financial statements and rent
rolls received from an applicable Eligible Loan borrower;

(iii)          Within 90 days after the last day of its
fiscal year, Guarantors’ consolidated audited financial statements, prepared by
a nationally recognized independent certified public accounting firm and
presented fairly in accordance with GAAP including a statement of operations
and a statement of changes in cash flows for such quarter and statement of net
assets as of the end of such quarter accompanied by an unqualified report of
the nationally recognized independent certified public accounting firm that
prepared them;

(iv)          Within 30 days of the earlier of (A) filing
or (B) the last filing extension period, copies of Seller’s and Guarantors’
Federal Income Tax returns, if any;

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(v)           Promptly after receipt of same, but, in any
event, within 20 days after the last day of each calendar quarter in any fiscal
year, any and all property level financial information with respect to the
Purchased Assets that is in the possession of Seller including, without
limitation, rent rolls and income statements for the immediately preceding
quarter and, when available, for the preceding year;

(vi)          Within sixty (60) days after the last day of
each calendar quarter in any fiscal year, an officer’s certificate from Seller
addressed to Buyer certifying that, as of such calendar month, (x) Seller is in
compliance with all of the terms, conditions and requirements of this
Agreement, and (y) no Event of Default exists;

(vii)         Within fifteen (15) days after the last day of
each month, with respect to Purchased Assets that are Eligible Loans, a
servicing tape with respect to each such Purchased Asset conforming to CMSA
standards, the contents of which shall be agreed upon between the parties;

(viii)        Within fifteen (15) days after the last day of
each month, a surveillance summary of the Purchased Assets;

(ix)           With respect to each Eligible Asset that is
a CMBS, Synthetic CMBS or a Junior Interest, as soon as available but in any
event not later than ten (10) days after receipt thereof, (x) the related
monthly securitization report, if any, and (y) within ten (10) days after the
end of each month, a copy of the standard monthly exception report, if any,
prepared by Seller in the ordinary course of its business in respect of the
related Eligible Asset;

(x)            Within fifteen (15) days after each month
end, a listing of any changes in all Hedging Transactions, Qualified Hedge
Counterparties and the material terms of each Hedging Transaction; and

(xi)           Within fifteen (15) days after each month
end, a monthly reporting package substantially in the form of Exhibit III
attached hereto.

Quarterly, beginning December 31, 2006, Seller shall
deliver to Buyer a certificate of a Responsible Officer of Seller (i) stating
that, to the best of such Responsible Officer’s knowledge, Seller during such
period has observed or performed all of its covenants and other agreements, and
satisfied every condition, contained in this Agreement and the other
Transaction Documents to be observed, performed or satisfied by it, and that
such Responsible Officer has obtained no knowledge of any Default or Event of
Default except as specified in such certificate (and, if any Default or Event
of Default has occurred and is continuing, describing the same in reasonable
detail and describing the action Seller has taken or proposes to take with
respect thereto) and (ii) showing in detail the calculations supporting
such Responsible Officer’s certification of Seller’s compliance with the
applicable requirements of Article 11(m).  Buyer shall treat all documents, reports,
financial statements, and other information provided to Buyer by Seller
pursuant to this Agreement as confidential information, shall use such
information only for the purpose of monitoring Seller’s compliance with this
Agreement, and shall not disclose such information other than to (i) employees
of Buyer solely for purposes of the monitoring and

 59
 

 

administration of this
Agreement and (ii) professional personnel, such as accountants an attorneys, to
the extent reasonably necessary for the monitoring and administration of this
Agreement.

(k)           Seller shall make a
representative available to Buyer every month for attendance at a telephone
conference, the date of which to be mutually agreed upon by Buyer and Seller,
regarding the status of each Purchased Asset, Seller’s compliance with the
requirements of Articles 11 and 12, and any other matters
relating to the Transaction Documents or Transactions that Seller wishes to
discuss with Buyer.

(l)            Seller shall at all
times comply in all material respects with all laws, ordinances, rules and
regulations of any federal, state, municipal or other public authority having
jurisdiction over Seller or any of its assets to the extent necessary to avoid
a Material Adverse Effect, and Seller shall do or cause to be done all things
necessary to preserve and maintain in full force and effect its legal
existence, and all licenses material to its business.

(m)          Seller shall at all
times keep proper books of records and accounts in which full, true and correct
entries shall be made of its transactions fairly in accordance with GAAP, and
set aside on its books from its earnings for each fiscal year all such proper
reserves in accordance with GAAP.

(n)           Seller shall observe,
perform and satisfy all the terms, provisions, covenants and conditions required
to be observed, performed or satisfied by it, and shall pay when due all costs,
fees and expenses required to be paid by it, under the Transaction
Documents.  Seller shall pay and
discharge all taxes, levies, liens and other charges on its assets and, to the
extent it is not specifically prohibited, on the Collateral that, in each case,
in any manner would create any lien or charge upon the Collateral, other than
any such taxes that are being appropriately contested in good faith by
appropriate proceedings diligently conducted and with respect to which adequate
reserves have been provided in accordance with GAAP.

(o)           Seller shall advise
Buyer in writing of the opening of any new chief executive office or the
closing of any such office and of any change in Seller’s name or the places
where the books and records pertaining to the Purchased Assets are held not
less than fifteen (15) Business Days prior to taking any such action.

(p)           Seller will maintain
records with respect to the Collateral and Purchased Items and the conduct and
operation of its business with no less a degree of prudence than if the
Collateral and Purchased Items were held by Seller for its own account and will
furnish Buyer, upon reasonable request by Buyer or its designated
representative, with reasonable information obtainable by Seller with respect
to the Collateral and Purchased Items and the conduct and operation of its
business.

(q)           Seller shall provide
Buyer with reasonable access to operating statements, the occupancy status and
other property level information with respect to the underlying real estate
directly or indirectly securing or supporting such Purchased Assets that either
is in Seller’s possession or is reasonably available to Seller, plus any such
additional reports as Buyer may

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request, to
the extent that Seller is entitled to obtain such reports pursuant to the
related Purchased Asset Documents.

(r)            Seller
shall enter into Hedging Transactions with respect to each of the
Hedge-Required Assets to the extent necessary to hedge interest rate risk
associated with the Purchase Price on such Hedge-Required Assets, in a manner
reasonably acceptable to Buyer, to the extent that such Hedging Transactions
will not give rise to non-qualifying REIT income under section 856 of the Code.

(s)           Seller
shall take all such steps as Buyer deems necessary to perfect the security
interest granted pursuant to Article 6 in the Hedging Transactions,
shall take such action as shall be necessary or advisable to preserve and
protect Seller’s interest under all such Hedging Transactions (including,
without limitation, requiring the posting of any required Additional Eligible
Collateral thereunder, and hereby authorizes Buyer to take any such action that
Seller fails to take after demand therefor by Buyer.  Seller shall provide the Custodian with
copies of all documentation relating to Hedging Transactions with Qualified
Hedge Counterparties promptly after entering into same.  All Hedging Transactions, if any, entered
into by Seller with Buyer or any of its Affiliates in respect of any Purchased
Asset shall be terminated or Seller shall maintain the applicable Hedging
Transaction so long as it remains Collateral for the benefit of the Buyer, in
each case, contemporaneously with the repurchase of such Purchased Asset on the
Repurchase Date therefor.

(t)            Seller
shall at all times ensure that each borrower under an Accommodation Loan be at
least 51% owned and controlled by DCTRT Repo Holdco LLC.

(u)           Seller
shall at all times ensure that it and DCTRT Repo Holdco LLC comply with the
special purpose entity provisions contained in the entities’ respective
organizational documents.

ARTICLE 13.

EVENTS OF DEFAULT; REMEDIES

(a)           Each
of the following events shall constitute an “Event of Default” under
this Agreement:

(i)            Seller or a Guarantor
shall fail to repurchase Purchased Assets upon the applicable Repurchase Date;

(ii)           Buyer shall fail to
receive on any Remittance Date the accreted value of the Price Differential
(less any amount of such Price Differential previously paid by Seller to Buyer)
(including, without limitation, in the event the Income paid or distributed on
or in respect of the Purchased Assets is insufficient to make such payment and
Seller does not make such payment or cause such payment to be made) (except that
such failure shall not be an Event of Default by Seller if sufficient Income,
other than Principal Payments, is on deposit in the Cash Management Account and
the Depository fails to remit such funds to Buyer);

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(iii)          Seller or a Guarantor
shall fail to cure any Margin Deficit, to the extent such Margin Deficit equals
or exceeds the Minimum Transfer Amount, in accordance with Article 4
of this Agreement;

(iv)          Seller or a Guarantor
shall fail to make any payment not otherwise addressed under this Article 13(a)
owing to Buyer that has become due, whether by acceleration or otherwise under
the terms of this Agreement, which failure is not remedied within three (3)
Business Days of notice thereof;

(v)           Seller shall default in
the observance or performance of any agreement contained in Article 11
of this Agreement, and such default shall not be cured within five (5) Business
Days of notice by Buyer to Seller thereof;

(vi)          an Act of Insolvency
occurs with respect to Seller or a Guarantor;

(vii)         Seller or a Guarantor
shall admit to any Person its inability to, or its intention not to, perform
any of its obligations hereunder;

(viii)        the Custodial Agreement,
the Control Agreement, or any other Transaction Document or a replacement
therefor acceptable to Buyer shall for
whatever reason be terminated or cease to be in full force and effect, or the
enforceability thereof shall be contested by Seller;

(ix)           Seller or a Guarantor shall be in default under (i) any Indebtedness of
Seller or a Guarantor, as appropriate, which default (1) involves the failure
to pay a matured obligation, or (2) permits the acceleration of the maturity of
obligations by any other party to or beneficiary with respect to such
Indebtedness, if the aggregate amount of the Indebtedness in respect of which
such default or defaults shall have occurred is (A) if the Consolidated
Tangible Net Worth of the Guarantor is less than $300,000,000, $250,000, (B) if
the Consolidated Tangible Net Worth of the Guarantor is greater than or equal
to $300,000,000 but less than $500,000,000, $500,000, (C) if the Consolidated
Tangible Net Worth of the Guarantor is greater than or equal to $500,000,000
but less than $1,000,000,000, $1,000,000, or (D) if the Consolidated Tangible
Net Worth of the Guarantor is greater than $1,000,000,000, $2,000,000; or (ii)
any other material contract to which Seller or a Guarantor is a party which
default (1) involves the failure to pay a matured obligation, or (2) permits
the acceleration of the maturity of obligations by any other party to or
beneficiary of such contract if the aggregate amount of such obligations is (A)
if the Consolidated Tangible Net Worth of the Guarantor is less than
$300,000,000, $250,000, (B) if the Consolidated Tangible Net Worth of the
Guarantor is greater than or equal to $300,000,000 but less than $500,000,000,
$500,000, (C) if the Consolidated Tangible Net Worth of the Guarantor is
greater than or equal to $500,000,000 but less than $1,000,000,000, $1,000,000,
or (D) if the Consolidated Tangible Net Worth of the Guarantor is greater than
$1,000,000,000, $2,000,000;

(x)            (i) Seller or an ERISA
Affiliate shall engage in any “prohibited transaction” (as defined in
Section 406 of ERISA or Section 4975 of the Code) involving any Plan
that is not exempt from such Sections of ERISA and the Code, (ii) any
material

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“accumulated funding deficiency” (as defined
in Section 302 of ERISA), whether or not waived, shall exist with respect
to any Plan or any Lien in favor of the PBGC or a Plan shall arise on the
assets of Seller or any ERISA Affiliate, (iii) a Reportable Event (as
referenced in Section 4043(b)(3) of ERISA) shall occur with respect to, or
proceedings shall commence to have a trustee appointed, or a trustee shall be
appointed, to administer or to terminate, any Plan, which Reportable Event or
commencement of proceedings or appointment of a trustee is, in the reasonable
opinion of Buyer, likely to result in the termination of such Plan for purposes
of Title IV of ERISA, (iv) any Plan shall terminate for purposes of Title
IV of ERISA, (v) Seller or any ERISA Affiliate shall, or in the reasonable
opinion of Buyer is likely to, incur any liability in connection with a
withdrawal from, or the insolvency or reorganization of, a Multiemployer Plan
or (vi) any other event or condition shall occur or exist with respect to
a Plan; and in each case in clauses (i) through (vi) above, such event or
condition, together with all other such events or conditions, if any, could
reasonably be expected to have a Material Adverse Effect;

(xi)           either (A) the
Transaction Documents shall for any reason not cause, or shall cease to cause,
Buyer to be the owner free of any adverse claim of any of the Purchased Assets,
and such condition is not cured by Seller within five (5) Business Days after notice
thereof from Buyer to Seller, or (B) if a Transaction is recharacterized as a
secured financing, and the Transaction Documents with respect to any
Transaction shall for any reason cease to create and maintain a valid first
priority security interest in favor of Buyer in any of the Purchased Assets;

(xii)          an “Event of Default,” “Termination
Event,” “Potential Event of Default” or other default or breach, however
denominated, occurs under any Hedging Transaction on the part of Seller, or the
counterparty to Seller on any such Hedging Transaction with a Qualified Hedge
Counterparty ceases to be a Qualified Hedge Counterparty, that is otherwise not
cured within any applicable cure period thereunder or, if no cure period exists
thereunder, which is not cured by Seller within five (5) Business Days after
notice thereof from an Affiliated Hedge Counterparty or Qualified Hedge
Counterparty to Seller;

(xiii)         any governmental,
regulatory, or self-regulatory authority shall have taken any action to
remove, limit, restrict, suspend or terminate the rights, privileges, or
operations of Seller or a Guarantor, which suspension has a Material Adverse
Effect in the determination of Buyer and that is not cured by Seller or such
Guarantor, as applicable, within five (5) Business Days after notice thereof
from Buyer to Seller or such Guarantor, as applicable;

(xiv)        any condition shall exist
that constitutes a Material Adverse Effect in Buyer’s sole discretion exercised
in good faith that is not cured by Seller or a Guarantor, as applicable, within
five (5) Business Days after notice thereof from Buyer to Seller or such
Guarantor, as applicable;

(xv)         an Early Termination
Event shall have been declared by Buyer and Seller shall have failed to
repurchase all of the Purchased Assets within the period required by Article 9
hereof;

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(xvi)        any representation made by
Seller to Buyer shall have been incorrect or untrue in any material respect
when made or repeated or deemed to have been made or repeated, without regard
to any knowledge qualifier (other than the representations and warranties set
forth in Article 10(b)(x), 10(b)(xxi) or 10(b)(xxii)
or Exhibit VI (in the case of Exhibit VI, with respect to the
affected Purchased Assets only) made by Seller, which shall not be considered an
Event of Default if incorrect or untrue in any material respect, provided
Seller terminates the related Transaction, as applicable, and repurchases the
related Purchased Assets on an Early Repurchase Date no later than three (3)
Business Days after receiving notice of such incorrect or untrue
representation; unless Seller shall have made any such representation with
knowledge that it was materially incorrect or untrue at the time made);

(xvii)       a final non-appealable
judgment by any competent court in the United States of America shall have been
rendered against Seller or a Guarantor, and such judgment remained undischarged
or unpaid for a period of sixty (60) days, during which period execution of
such judgment is not effectively stayed by bonding over or other means
acceptable to Buyer for the payment of money in an amount greater than (A) if the Consolidated Tangible Net Worth of
such party is less than $300,000,000, $250,000, (B) if the Consolidated
Tangible Net Worth of such party is greater than or equal to $300,000,000 but
less than $500,000,000, $500,000, (C) if the Consolidated Tangible Net Worth of
such party is greater than or equal to $500,000,000 but less than
$1,000,000,000, $1,000,000, or (D) if the Consolidated Tangible Net Worth of
such party is greater than $1,000,000,000, $2,000,000;

(xviii)      if Seller shall breach or
fail to perform any of the terms, covenants, obligations or conditions of this
Agreement, other than as specifically otherwise referred to in this definition
of “Event of Default”, and such breach or failure to perform is not
remedied within the earlier of seven (7) days after (a) delivery of notice
thereof to Seller by Buyer, or (b) actual knowledge on the part of Seller of
such breach or failure to perform; and

(xix)         the Guarantee Agreement
or a replacement therefor acceptable to Buyer
shall for whatever reason be terminated or cease to be in full force and
effect, or the enforceability thereof shall be contested by a Guarantor or
Seller.

(b)           After
the occurrence and during the continuance of an Event of Default, Seller hereby
appoints Buyer as attorney-in-fact of Seller for the purpose of
carrying out the provisions of this Agreement and taking any action and
executing or endorsing any instruments that Buyer may deem necessary or
advisable to accomplish the purposes hereof, which appointment as attorney-in-fact
is irrevocable and coupled with an interest. 
If an Event of Default shall occur and be continuing with respect to
Seller, the following rights and remedies shall be available to Buyer:

(i)            At the option of
Buyer, exercised by written notice to Seller (which option shall be deemed to
have been exercised, even if no notice is given, immediately upon the
occurrence of an Act of Insolvency with respect to Seller), the Repurchase Date
for each Transaction hereunder shall, if it has not already occurred, be deemed
immediately to

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occur (the date on which such option is
exercised or deemed to have been exercised being referred to hereinafter as the
“Accelerated Repurchase Date”).

(ii)           If Buyer exercises or
is deemed to have exercised the option referred to in Article 13(b)(i)
of this Agreement:

(A)          Seller’s obligations
hereunder to repurchase all Purchased Assets shall become immediately due and
payable on and as of the Accelerated Repurchase Date; and

(B)           to the extent permitted
by applicable law, the Repurchase Price with respect to each Transaction
(determined as of the Accelerated Repurchase Date) shall be increased by the
aggregate amount obtained by daily application of, on a 360 day per year basis
for the actual number of days during the period from and including the
Accelerated Repurchase Date to but excluding the date of payment of the
Repurchase Price (as so increased), (x) the Pricing Rate for such Transaction
multiplied by (y) the Repurchase Price for such Transaction (decreased by (I)
any amounts actually remitted to Buyer by the Depository or Seller from time to
time pursuant to Article 5 of this Agreement and applied to such
Repurchase Price, and (II) any amounts applied to the Repurchase Price pursuant
to Article 13(b)(iii) of this Agreement); and

(C)           the Custodian shall,
upon the request of Buyer, deliver to Buyer all instruments, certificates and
other documents then held by the Custodian relating to the Purchased Assets.

(iii)          Upon the occurrence of
an Event of Default with respect to Seller, Buyer may (A) immediately sell, at
a public or private sale in a commercially reasonable manner and at such price
or prices as Buyer may deem satisfactory any or all of the Purchased Assets,
and/or (B) in its sole discretion elect, in lieu of selling all or a portion of
such Purchased Assets, to give Seller credit for such Purchased Assets in an
amount equal to the Market Value of such Purchased Assets against the aggregate
unpaid Repurchase Price for such Purchased Assets and any other amounts owing
by Seller under the Transaction Documents. 
The proceeds of any disposition of Purchased Assets effected pursuant to
this Article 13(b)(iii) shall be applied, (u) first, to the costs and
expenses incurred by Buyer in connection with Seller’s default; (v) second, to
consequential damages, including, but not limited to, costs of cover and/or
Hedging Transactions, if any; (w) third, to the Repurchase Price; (x) fourth,
to the Exit Fee and any other outstanding obligation of Seller to Buyer or its
Affiliates; (y) fifth, to the Breakage Costs; and (z) sixth, to return any
excess to Seller.  Seller may bid in any
public or private sale of the Purchased Assets.

(iv)          The parties recognize
that it may not be possible to purchase or sell all of the Purchased Assets on
a particular Business Day, or in a transaction with the same purchaser, or in
the same manner because the market for such 
Purchased Assets may not be liquid. 
In view of the nature of the Purchased Assets, the parties agree that
liquidation of a Transaction or the Purchased Assets does not require a public
purchase or sale and

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that a good faith private purchase or sale
(other than to an Affiliate of Buyer) shall be deemed to have been made in a
commercially reasonable manner. 
Accordingly, Buyer may elect, in its sole discretion, the time and
manner of liquidating any Purchased Assets, and nothing contained herein shall
(A) obligate Buyer to liquidate any Purchased Assets on the occurrence and
during the continuance of an Event of Default or to liquidate all of the
Purchased Assets in the same manner or on the same Business Day or (B)
constitute a waiver of any right or remedy of Buyer.

(v)           Seller shall be liable
to Buyer for (A) the amount of all actual out-of-pocket expenses, including
reasonable legal fees and expenses, actually incurred by Buyer in connection
with or as a consequence of an Event of Default with respect to Seller and (B)
all costs incurred by Buyer in connection with Hedging Transactions in the
event that Seller, from and after an Event of Default, takes any action to
impede or otherwise affect Buyer’s remedies under this Agreement.

(vi)          Buyer shall have, in
addition to its rights and remedies under the Transaction Documents, all of the
rights and remedies provided by applicable federal, state, foreign (where
relevant), and local laws (including, without limitation, if the Transactions
are recharacterized as secured financings, the rights and remedies of a secured
party under the UCC of the State of New York, to the extent that the UCC is
applicable, and the right to offset any mutual debt and claim), in equity, and
under any other agreement between Buyer and Seller.  Without limiting the generality of the
foregoing, Buyer shall be entitled to set off the proceeds of the liquidation
of the Purchased Assets against all of Seller’s obligations to Buyer under this
Agreement, without prejudice to Buyer’s right to recover any deficiency.

(vii)         Buyer may exercise any or
all of the remedies available to Buyer immediately upon the occurrence of an
Event of Default with respect to Seller and at any time during the continuance
thereof.  All rights and remedies arising
under the Transaction Documents, as amended from time to time, are cumulative
and not exclusive of any other rights or remedies that Buyer may have.

(viii)        Buyer may enforce its
rights and remedies hereunder without prior judicial process or hearing, and
Seller hereby expressly waives any defenses Seller might otherwise have to
require Buyer to enforce its rights by judicial process.  Seller also waives, to the extent permitted
by law, any defense Seller might otherwise have arising from the use of
nonjudicial process, disposition of any or all of the Purchased Assets, or from
any other election of remedies.  Seller
recognizes that nonjudicial remedies are consistent with the usages of the
trade, are responsive to commercial necessity and are the result of a bargain
at arm’s length.

ARTICLE 14.

SINGLE AGREEMENT

Buyer and Seller
acknowledge that, and have entered hereinto and will enter into each
Transaction hereunder in consideration of and in reliance upon the fact that,
all Transactions hereunder constitute a single business and contractual
relationship and have been made in

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consideration of
each other.  Accordingly, each of Buyer
and Seller agrees (i) to perform all of its obligations in respect of each
Transaction hereunder, and that a default in the performance of any such
obligations shall constitute a default by it in respect of all Transactions
hereunder, (ii) that each of them shall be entitled to set off claims and apply
property held by them in respect of any Transaction against obligations owing
to them in respect of any other Transactions hereunder and (iii) that payments,
deliveries and other transfers made by either of them in respect of any
Transaction shall be deemed to have been made in consideration of payments,
deliveries and other transfers in respect of any other Transactions hereunder,
and the obligations to make any such payments, deliveries and other transfers
may be applied against each other and netted.

ARTICLE 15.

RECORDING OF COMMUNICATIONS

EACH OF BUYER AND SELLER SHALL
HAVE THE RIGHT (BUT NOT THE OBLIGATION) FROM TIME TO TIME TO MAKE OR CAUSE TO
BE MADE TAPE RECORDINGS OF COMMUNICATIONS BETWEEN ITS EMPLOYEES, IF ANY, AND
THOSE OF THE OTHER PARTY WITH RESPECT TO TRANSACTIONS; PROVIDED, HOWEVER,
THAT SUCH RIGHT TO RECORD COMMUNICATIONS SHALL BE LIMITED TO COMMUNICATIONS OF
EMPLOYEES TAKING PLACE ON THE TRADING FLOOR OF THE APPLICABLE PARTY.  EACH OF BUYER AND SELLER HEREBY CONSENTS TO
THE ADMISSIBILITY OF SUCH TAPE RECORDINGS IN ANY COURT, ARBITRATION, OR OTHER
PROCEEDINGS, AND AGREES THAT A DULY AUTHENTICATED TRANSCRIPT OF SUCH A TAPE
RECORDING SHALL BE DEEMED TO BE A WRITING CONCLUSIVELY EVIDENCING THE PARTIES’
AGREEMENT.

ARTICLE 16.

NOTICES AND OTHER COMMUNICATIONS

Unless otherwise provided
in this Agreement, all notices, consents, approvals and requests required or
permitted hereunder shall be given in writing and shall be effective for all
purposes if hand delivered or sent by (a) hand delivery, with proof of
delivery, (b) certified or registered United States mail, postage prepaid, (c)
expedited prepaid delivery service, either commercial or United States Postal
Service, with proof of delivery or (d) by telecopier (with answerback
acknowledged) provided that such telecopied notice must also be
delivered by one of the means set forth in (a), (b) or (c) above, to the
address specified in Annex I hereto or at such other address and person as
shall be designated from time to time by any party hereto, as the case may be,
in a written notice to the other parties hereto in the manner provided for in
this Article.  A notice shall be deemed
to have been given: (w) in the case of hand delivery, at the time of delivery,
(x) in the case of registered or certified mail, when delivered or the first
attempted delivery on a Business Day, (y) in the case of expedited prepaid
delivery upon the first attempted delivery on a Business Day, or (z) in the
case of telecopier, upon receipt of answerback confirmation, provided
that such telecopied notice was also delivered as required in this
Article.  A party receiving a notice that
does not comply with the technical requirements for notice under this Article
may elect to waive any deficiencies and treat the notice as having been
properly given.

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ARTICLE 17.

ENTIRE AGREEMENT; SEVERABILITY

This Agreement shall
supersede any existing agreements between the parties containing general terms
and conditions for repurchase transactions. 
Each provision and agreement herein shall be treated as separate and
independent from any other provision or agreement herein and shall be
enforceable notwithstanding the unenforceability of any such other provision or
agreement.

ARTICLE 18.

NON-ASSIGNABILITY

(a)           Subject
to Article 18(b) below, neither Seller nor Buyer may assign any of
its rights or obligations under this Agreement without the prior written
consent of the other party, not to be unreasonably withheld or delayed and any
attempt by Seller or Buyer to assign any of its rights or obligations under
this Agreement without the prior written consent of the other party shall be
null and void.  Buyer may upon notice to
Seller and without consent of Seller, sell to one or more banks, financial
institutions or other entities (“Participants”)
participating interests in any Transaction, its interest in the Purchased
Assets, or any other interest of Buyer under this Agreement. provided, however,
that, in all instances, (i) Buyer shall act as agent for all  participants in any dealings with Seller in
connection with such Transactions, (ii) Buyer shall remain primarily liable for
the performance of all obligations of Buyer hereunder as if Buyer had not sold
a participation interest, (iii) Seller shall not be obligated to deal directly
with any party other than Buyer in connection with such Transactions, or to pay
or reimburse Buyer for any costs that would not have been incurred by Buyer had
no participation interests in such Transactions been issued, and (iv) such
participation shall not result in any costs or taxes to Seller.  Seller agrees to cooperate with Buyer in
connection with any such assignment, transfer or sale of participating interest
and to enter into such restatements of, and amendments, supplements and other
modifications to, this Agreement in order to give effect to such assignment,
transfer or sale.

(b)           Title
to all Purchased Assets and Purchased Items shall pass to Buyer and Buyer shall
have free and unrestricted use of all Purchased Assets, subject to its
obligations under the Transaction Documents. 
Nothing in this Agreement shall preclude Buyer from engaging in
repurchase transactions with the Purchased Assets and Purchased Items or otherwise
selling, pledging, repledging, transferring, hypothecating, or rehypothecating
the Purchased Assets and Purchased Items, all on terms that Buyer may determine
in its sole discretion; provided, however, that Buyer shall
transfer the identical Purchased Assets to Seller on the applicable Repurchase
Date free and clear of any pledge, lien, security interest, encumbrance, charge
or other adverse claim on any of the Purchased Assets.  Nothing contained in this Agreement shall
obligate Buyer to segregate any Purchased Assets or Purchased Items transferred
to Buyer by Seller.

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ARTICLE 19.

GOVERNING LAW

THIS AGREEMENT SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT
TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

ARTICLE 20.

NO WAIVERS, ETC.

No express or implied
waiver of any Event of Default by either party shall constitute a waiver of any
other Event of Default and no exercise of any remedy hereunder by any party
shall constitute a waiver of its right to exercise any other remedy
hereunder.  No modification or waiver of
any provision of this Agreement and no consent by any party to a departure
herefrom shall be effective unless and until such shall be in writing and duly
executed by both of the parties hereto. 
Without limitation on any of the foregoing, the failure to give a notice
pursuant to Articles 4(a) or 4(b) hereof will not constitute
a waiver of any right to do so at a later date.

ARTICLE 21.

USE OF EMPLOYEE PLAN ASSETS

(a)           If
assets of an employee benefit plan subject to any provision of ERISA are intended to
be used by either party hereto (the “Plan Party”) in a Transaction, the Plan Party
shall so notify the other party prior to the Transaction.  The Plan Party shall represent in writing to
the other party that the Transaction does not constitute a prohibited
transaction under ERISA or is otherwise exempt therefrom, and the other party
may proceed in reliance thereon but shall not be required so to proceed.

(b)           Subject
to the last sentence of subparagraph (a) of this Article, any such Transaction
shall proceed only if Seller furnishes or has furnished to Buyer its most
recent available audited statement of its financial condition and its most
recent subsequent unaudited statement of its financial condition.

(c)           By
entering into a Transaction, pursuant to this Article, Seller shall be deemed
(i) to represent to Buyer that since the date of Seller’s latest such
financial statements, there has been no material adverse change in Seller’s
financial condition that Seller has not disclosed to Buyer, and (ii) to agree
to provide Buyer with future audited and unaudited statements of its financial
condition as they are issued, so long as it is Seller in any outstanding
Transaction involving a Plan Party.

ARTICLE 22.

INTENT

(a)           The
parties recognize that each Transaction is a “repurchase agreement” as that
term is defined in Section 101(47) of Title 11 of the United States Code, as
amended (except insofar as the type of Assets subject to such Transaction or
the term of such Transaction would

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 render such definition inapplicable), and a “securities
contract” as that term is defined in Section 741 of Title 11 of the United
States Code, as amended (except insofar as the type of assets subject to such
Transaction would render such definition inapplicable).

(b)           It
is understood that either party’s right to liquidate Assets delivered to it in
connection with Transactions hereunder or to exercise any other remedies
pursuant to Article 13 hereof is a contractual right to liquidate
such Transaction as described in Sections 555, 559 and 561 of Title 11 of the
United States Code, as amended.

(c)           The
parties agree and acknowledge that if a party hereto is an “insured depository
institution,” as such term is defined in the Federal Deposit Insurance Act, as
amended (“FDIA”),
then each Transaction hereunder is a “qualified financial contract,” as that
term is defined in the FDIA and any rules, orders or policy statements
thereunder (except insofar as the type of assets subject to such Transaction
would render such definition inapplicable).

(d)           It
is understood that this Agreement constitutes a “netting contract” as defined
in and subject to Title IV of the Federal Deposit Insurance Corporation
Improvement Act of 1991 (“FDICIA”)
and each payment entitlement and payment obligation under any Transaction
hereunder shall constitute a “covered contractual payment entitlement” or “covered
contractual payment obligation”, respectively, as defined in and subject to
FDICIA (except insofar as one or both of the parties is not a “financial institution”
as that term is defined in FDICIA).

(e)           It
is understood that this Agreement constitutes a “master netting agreement” as
defined in Section 101(38A) of Title 11 of the United States Code, as amended,
and as used in Section 561 of Title 11 of the United States Code, as amended.

(f)            It
is the intention of the parties that, for U.S. Federal, state and local income
and franchise tax purposes, each Transaction constitute a financing, and that Seller
be (except to the extent that Buyer shall have exercised its remedies following
an Event of Default) the owner of the Purchased Assets for such purposes.  Unless prohibited by applicable law, Seller
and Buyer agree to treat the Transactions as described in the preceding
sentence on any and all filings with any U.S. Federal, state, or local taxing
authority.

ARTICLE 23.

DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS

The parties acknowledge
that they have been advised that:

(a)           in
the case of Transactions in which one of the parties is a broker or dealer
registered with the Securities and Exchange Commission (“SEC”) under
Section 15 of the Securities Exchange Act of 1934 (“1934 Act”), the
Securities Investor Protection Corporation has taken the position that the
provisions of the Securities Investor Protection Act of 1970 (“SIPA”) do not protect
the other party with respect to any Transaction hereunder;

(b)           in
the case of Transactions in which one of the parties is a government securities
broker or a government securities dealer registered with the SEC under Section
15C of the 1934

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Act, SIPA will
not provide protection to the other party with respect to any Transaction
hereunder; and

(c)           in
the case of Transactions in which one of the parties is a financial
institution, funds held by the financial institution pursuant to a Transaction
hereunder are not a deposit and therefore are not insured by the Federal
Deposit Insurance Corporation or the National Credit Union Share Insurance
Fund, as applicable.

ARTICLE 24.

CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

(a)           Each
party irrevocably and unconditionally (i) submits to the non-exclusive
jurisdiction of any United States Federal or New York State court sitting in
Manhattan, and any appellate court from any such court, solely for the purpose
of any suit, action or proceeding brought to enforce its obligations under this
Agreement or relating in any way to this Agreement or any Transaction under
this Agreement and (ii) waives, to the fullest extent it may effectively do so,
any defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court and any right of jurisdiction on account of its
place of residence or domicile.

(b)           To
the extent that either party has or hereafter may acquire any immunity
(sovereign or otherwise) from any legal action, suit or proceeding, from
jurisdiction of any court or from set off or any legal process (whether service
or notice, attachment prior to judgment, attachment in aid of execution of judgment,
execution of judgment or otherwise) with respect to itself or any of its
property, such party hereby irrevocably waives and agrees not to plead or claim
such immunity in respect of any action brought to enforce its obligations under
this Agreement or relating in any way to this Agreement or any Transaction
under this Agreement.

(c)           The
parties hereby irrevocably consent to the service of any summons and complaint
and any other process by the mailing of copies of such process to them at their
respective address specified herein.  The
parties hereby agree that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.  Nothing in this Article 24 shall
affect the right of Buyer to serve legal process in any other manner permitted
by law or affect the right of Buyer to bring any action or proceeding against
Seller or its property in the courts of other jurisdictions.

(d)           EACH
OF THE PARTIES HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS
AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY INSTRUMENT OR DOCUMENT
DELIVERED HEREUNDER OR THEREUNDER.

 71

 

ARTICLE 25.

NO RELIANCE

Each of Buyer and Seller hereby acknowledges,
represents and warrants to the other that, in connection with the negotiation
of, the entering into, and the performance under, the Transaction Documents and
each Transaction thereunder:

(a)           It is not relying (for
purposes of making any investment decision or otherwise) upon any advice,
counsel or representations (whether written or oral) of the other party to the
Transaction Documents, other than the representations expressly set forth in
the Transaction Documents;

(b)           It has consulted with
its own legal, regulatory, tax, business, investment, financial and accounting
advisors to the extent that it has deemed necessary, and it has made its own
investment, hedging and trading decisions (including decisions regarding the
suitability of any Transaction) based upon its own judgment and upon any advice
from such advisors as it has deemed necessary and not upon any view expressed
by the other party;

(c)           It is a sophisticated
and informed Person that has a full understanding of all the terms, conditions
and risks (economic and otherwise) of the Transaction Documents and each
Transaction thereunder and is capable of assuming and willing to assume
(financially and otherwise) those risks;

(d)           It is entering into the
Transaction Documents and each Transaction thereunder for the purposes of
managing its borrowings or investments or hedging its underlying assets or
liabilities and not for purposes of speculation; and

(e)           It is not acting as a
fiduciary or financial, investment or commodity trading advisor for the other
party and has not given the other party (directly or indirectly through any
other Person) any assurance, guarantee or representation whatsoever as to the
merits (either legal, regulatory, tax, business, investment, financial
accounting or otherwise) of the Transaction Documents or any Transaction
thereunder.

ARTICLE 26.

INDEMNITY

Seller hereby agrees to indemnify Buyer, Buyer’s
Affiliates and each of its officers, directors, employees and agents (“Indemnified Parties”)
from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, taxes (including stamp, excise, sales or
other taxes that may be payable or determined to be payable with respect to any
of the Purchased Assets, Purchased Items or Collateral or in connection with
any of the transactions contemplated by this Agreement and the documents
delivered in connection herewith, other than income, withholding or other taxes
imposed upon Buyer), fees, costs, expenses (including reasonable attorneys’
fees and disbursements) or disbursements (all of the foregoing, collectively “Indemnified Amounts”)
that may at any time (including, without limitation, such time as this
Agreement shall no longer be in effect and the Transactions shall have been
repaid in full) be imposed on or asserted against any Indemnified Party in any
way whatsoever arising out of or in

 72
 

 

connection with, or
relating to, this Agreement or any Transactions hereunder or any action taken
or omitted to be taken by any Indemnified Party under or in connection with any
of the foregoing other than, in each case, any amounts that fall within the
above definition but result from the gross negligence, bad faith, willful
misconduct, or breach of this Agreement by any Indemnified Party.  Without limiting the generality of the
foregoing, Seller agrees to hold Buyer harmless from and indemnify Buyer
against all Indemnified Amounts with respect to all Purchased Assets relating
to or arising out of any violation or alleged violation of any environmental
law, rule or regulation or any consumer credit laws, including without
limitation ERISA, the Truth in Lending Act and/or the Real Estate Settlement
Procedures Act.  In any suit, proceeding
or action brought by Buyer in connection with any Purchased Asset for any sum
owing thereunder, or to enforce any provisions of any Purchased Asset, Seller
will save, indemnify and hold Buyer harmless from and against all expense
(including reasonable attorneys’ fees), loss or damage suffered by reason of
any defense, set-off, counterclaim, recoupment or reduction or liability
whatsoever of the account debtor or obligor thereunder, arising out of a breach
by Seller of any obligation thereunder or arising out of any other agreement,
indebtedness or liability at any time owing to or in favor of such account
debtor or obligor or its successors from Seller.  Seller also agrees to reimburse Buyer as and
when billed by Buyer for all Buyer’s reasonable costs and out-of-pocket
expenses incurred in connection with Buyer’s due diligence reviews with respect
to the Purchased Assets (including, without limitation, those incurred pursuant
to Article 27 and Article 3 (including, without
limitation, all Pre-Purchase Legal Expenses, even if the underlying prospective
Transaction for which they were incurred does not take place for any reason)
and the enforcement or the preservation of Buyer’s rights under this Agreement,
any Transaction Documents or Transaction contemplated hereby, including without
limitation the fees and disbursements of its counsel.  Seller hereby acknowledges that, the
obligation of Seller hereunder is a recourse obligation of Seller.

ARTICLE 27.

DUE DILIGENCE

Seller acknowledges that Buyer has the right to
perform continuing due diligence reviews with respect to the Purchased Assets,
for purposes of verifying compliance with the representations, warranties and
specifications made hereunder, or otherwise, and Seller agrees that upon
reasonable prior notice to Seller, Buyer or its authorized representatives will
be permitted during normal business hours to examine, inspect, and make copies
and extracts of, the Purchased Asset Files, Servicing Records and any and all
documents, records, agreements, instruments or information relating to such
Purchased Assets in the possession or under the control of Seller, any other
servicer or subservicer and/or the Custodian. 
Seller agrees to reimburse Buyer for any and all out-of-pocket
costs and expenses incurred by Buyer with respect to due diligence on the
Purchased Assets during the term of this Agreement, which shall be paid by
Seller to Buyer within (10) days after receipt of an invoice therefor.  Seller also shall make available to Buyer a
knowledgeable financial or accounting officer for the purpose of answering
questions respecting the Purchased Asset Files and the Purchased Assets.  Without limiting the generality of the
foregoing, Seller acknowledges that Buyer may enter into Transactions with
Seller based solely upon the information provided by Seller to Buyer and the
representations, warranties and covenants contained herein, and that Buyer, at
its option, has the right at any time to conduct a partial or complete due
diligence review on some or all of the Purchased Assets.

 73
 

 

Buyer may underwrite such
Purchased Assets itself or engage a third party underwriter to perform such
underwriting.  Seller agrees to cooperate
with Buyer and any third party underwriter in connection with such underwriting,
including, but not limited to, providing Buyer and any third party underwriter
with access to any and all documents, records, agreements, instruments or
information relating to such Purchased Assets in the possession, or under the
control, of Seller.  Seller further
agrees that Seller shall reimburse Buyer for any and all reasonable attorneys’
fees, costs and expenses incurred by Buyer in connection with diligence on
Eligible Assets and Purchased Assets. 
With respect to Purchased Assets that Buyer determines to be “performing”
Purchased Assets, in its sole and absolute discretion, Seller shall have
no  liability for costs and expenses
related to the ongoing surveillance of such performing Purchased Assets.  Notwithstanding the foregoing any due
diligence costs paid to third parties, including, without limitation, FIRREA
appraisals, environmental reports or other third party underwriting reports, or
any travel expenses, shall be paid by Seller to Buyer within 10 days after
receipt of an invoice therefor.

ARTICLE 28.

SERVICING

(a)           Notwithstanding the
purchase and sale of the Purchased Assets hereby, Seller shall cause the
Purchased Assets that are Eligible Loans, other than the Titan Loan, to be
serviced by Servicer (such Purchased Assets, “Serviced Assets”) for the benefit of Buyer and,
if Buyer shall exercise its rights to pledge or hypothecate the Serviced Assets
prior to the Repurchase Date pursuant to Article 8, for the benefit
of Buyer’s assigns.  Notwithstanding the
foregoing, the Titan Loan shall be serviced by the Servicer set forth in the
Accommodation Loan Servicing Agreement. 
To the extent that Seller has any right to do so, Seller shall service
or cause Servicer to service the Serviced Assets at Seller’s sole cost and for
the benefit of Buyer in accordance with Accepted Servicing Practices approved
by Buyer in the exercise of its reasonable business judgment and maintained by
other prudent mortgage or mezzanine lenders with respect to mortgage and/or
mezzanine loans similar to the Serviced Assets, provided, however,
that the obligations of Seller to service any of the Serviced Assets shall
cease, at Buyer’s option and subject to the terms of the Purchased Assets, upon
the earliest of (i) an Event of Default, or (ii) the delivery by Buyer to
Seller of at least five (5) days prior written notice of the decision by Buyer
to transfer the servicing rights of any or all of the Serviced Assets to either
Servicer or another third party servicer selected by Buyer.  In either case, Seller shall take all actions
necessary to effectuate the underlying servicing transfer as expeditiously as
possible.  Notwithstanding the foregoing,
neither Seller nor Servicer shall take any action or effect any modification or
amendment to any Purchased Asset (other than de minimis
changes) without first having given prior notice thereof to Buyer in each such
instance and receiving the prior written consent of Buyer; provided, however,
that Seller shall deliver, promptly after execution, written notice to Buyer of
any such de minimis modifications or amendments.

(b)           Seller agrees that
Buyer is the owner of all servicing records, including but not limited to any
and all servicing agreements and pooling and servicing agreements (including,
without limitation any “Interim Servicing Agreement” with Servicer) (collectively,
the “Servicing Agreements”),
files, documents, records, data bases, computer tapes, copies of computer
tapes, proof of insurance coverage, insurance policies, appraisals, other
closing

 74
 

 

documentation, payment history
records, and any other records relating to or evidencing the servicing of
Purchased Assets (the “Servicing
Records”) so long as the Purchased Assets are subject to this
Agreement.  Seller grants Buyer a
security interest in all servicing fees and rights relating to the Purchased
Assets and all Servicing Records to secure the obligation of Seller or its
designee to service in conformity with this Article and any other obligation of
Seller to Buyer.  Seller covenants to
safeguard such Servicing Records and to deliver them promptly to Buyer or its
designee (including the Custodian) at Buyer’s request.

(c)           Upon the occurrence and
during the continuance of an Event of Default, Buyer may, in its sole
discretion, (i) sell its right to the Serviced Assets on a servicing released
basis or (ii) terminate Seller, Servicer or any sub-servicer of the
Purchased Assets with or without cause, in each case without payment of any
termination fee.

(d)           To the extent that
Seller controls the identity of a servicer of an Eligible Loan, Seller shall
not employ sub-servicers to service the Purchased Assets without the prior
written approval of Buyer.  If the
Purchased Assets are serviced by a sub-servicer, Seller shall irrevocably
assign all rights, title and interest (if any) in the Servicing Agreements in
the Purchased Assets to Buyer.

(e)           Seller shall cause
Servicer or any sub-servicers engaged by Seller to execute a letter
agreement with Buyer acknowledging Buyer’s security interest and agreeing that
it shall deposit all Income with respect to the Purchased Assets in the Cash
Management Account, and so long as a Purchased Asset is subject to a
Transaction, following notice from Buyer to Seller of an Event of Default under
this Agreement, Servicer shall take no action under this Agreement with regard
to such Purchased Asset other than as specifically directed by Buyer.

ARTICLE 29.

MISCELLANEOUS

(a)           All rights, remedies
and powers of Buyer hereunder and in connection herewith are irrevocable and
cumulative, and not alternative or exclusive, and shall be in addition to all
other rights, remedies and powers of Buyer whether under law, equity or
agreement.  In addition to the rights and
remedies granted to it in this Agreement, to the extent this Agreement is
determined to create a security interest, Buyer shall have all rights and
remedies of a secured party under the UCC.

(b)           The Transaction
Documents may be executed in counterparts, each of which so executed shall be
deemed to be an original, but all of such counterparts shall together
constitute but one and the same instrument.

(c)           The headings in the
Transaction Documents are for convenience of reference only and shall not
affect the interpretation or construction of the Transaction Documents.

(d)           Without limiting the
rights and remedies of Buyer under the Transaction Documents, Seller shall pay
Buyer’s reasonable actual out-of-pocket costs and expenses,
including reasonable fees and expenses of accountants, attorneys and advisors,
incurred in connection with the preparation, negotiation, execution and
consummation of, and any

 75
 

 

amendment, supplement or
modification to, the Transaction Documents and the Transactions thereunder,
whether or not such Transaction Document (or amendment thereto) or Transaction
is ultimately consummated.  Seller agrees
to pay Buyer on demand all costs and expenses (including reasonable expenses
for legal services of every kind) of any subsequent enforcement of any of the
provisions hereof, or of the performance by Buyer of any obligations of Seller
in respect of the Purchased Assets, or any actual or attempted sale, or any
exchange, enforcement, collection, compromise or settlement in respect of any
of the Collateral or Purchased Items and for the custody, care or preservation
of the Collateral or Purchased Items (including insurance costs) and defending
or asserting rights and claims of Buyer in respect thereof, by litigation or
otherwise.  In addition, Seller agrees to
pay Buyer on demand all reasonable costs and expenses (including reasonable
expenses for legal services) incurred in connection with the maintenance of the
Cash Management Account and registering the Collateral and Purchased Items in
the name of Buyer or its nominee.  All
such expenses shall be recourse obligations of Seller to Buyer under this
Agreement.

(e)           In addition to any rights
now or hereafter granted under applicable law or otherwise, and not by way of
limitation of such rights, Seller hereby grants to Buyer and its Affiliates a
right of offset, to secure repayment of all amounts owing to Buyer or its
Affiliates by Seller under the Transaction Documents, upon any and all monies,
securities, collateral or other property of Seller and the proceeds therefrom,
now or hereafter held or received by Buyer or its Affiliates or any entity
under the control of Buyer or its Affiliates and its respective successors and
assigns (including, without limitation, branches and agencies of Buyer,
wherever located), for the account of Seller, whether for safekeeping, custody,
pledge, transmission, collection, or otherwise, and also upon any and all
deposits (general or specified) and credits of Seller at any time
existing.  Buyer and its Affiliates are
hereby authorized at any time and from time to time upon the occurrence and
during the continuance of an Event of Default, without notice to Seller, to
offset, appropriate, apply and enforce such right of offset against any and all
items hereinabove referred to against any amounts owing to Buyer or its
Affiliates by Seller under the Transaction Documents, irrespective of whether
Buyer or its Affiliates shall have made any demand hereunder and although such
amounts, or any of them, shall be contingent or unmatured and regardless of any
other collateral securing such amounts. 
Seller shall be deemed directly indebted to Buyer and its Affiliates in
the full amount of all amounts owing to Buyer and its Affiliates by Seller
under the Transaction Documents, and Buyer and its Affiliates shall be entitled
to exercise the rights of offset provided for above.  ANY AND ALL RIGHTS TO REQUIRE BUYER OR ITS
AFFILIATES TO EXERCISE THEIR RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER
COLLATERAL OR PURCHASED ITEMS THAT SECURE THE AMOUNTS OWING TO BUYER OR ITS
AFFILIATES BY SELLER UNDER THE TRANSACTION DOCUMENTS, PRIOR TO EXERCISING THEIR
RIGHT OF OFFSET WITH RESPECT TO SUCH MONIES, SECURITIES, COLLATERAL, DEPOSITS,
CREDITS OR OTHER PROPERTY OF SELLER, ARE HEREBY KNOWINGLY, VOLUNTARILY AND
IRREVOCABLY WAIVED BY SELLER.

(f)            Each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by
or be invalid under such law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.

 76
 

 

(g)           This Agreement contains
a final and complete integration of all prior expressions by the parties with
respect to the subject matter hereof and thereof and shall constitute the
entire agreement among the parties with respect to such subject matter,
superseding all prior oral or written understandings.

(h)           The parties understand
that this Agreement is a legally binding agreement that may affect such party’s
rights.  Each party represents to the
other that it has received legal advice from counsel of its choice regarding
the meaning and legal significance of this Agreement and that it is satisfied
with its legal counsel and the advice received from it.

(i)            Should any provision
of this Agreement require judicial interpretation, it is agreed that a court
interpreting or construing the same shall not apply a presumption that the
terms hereof shall be more strictly construed against any Person by reason of
the rule of construction that a document is to be construed more strictly
against the Person who itself or through its agent prepared the same, it being
agreed that all parties have participated in the preparation of this Agreement.

(j)            Wherever pursuant to
this Agreement, Buyer exercises any right given to it to consent or not
consent, or to approve or disapprove, or any arrangement or term is to be
satisfactory to, Buyer in its sole discretion, Buyer shall decide to consent or
not consent, or to approve or disapprove or to decide that arrangements or
terms are satisfactory or not satisfactory, in its sole and absolute discretion
and such decision by Buyer shall be final and conclusive.

(k)           Each Affiliated Hedge
Counterparty is an intended third party beneficiary of this Agreement and the
parties hereto agree that this Agreement shall not be amended or otherwise
modified without the written consent of each Affiliated Hedge Counterparty,
such consent not to be unreasonably withheld.

[REMAINDER OF PAGE LEFT
BLANK]

 77

IN WITNESS WHEREOF, the parties have executed this Agreement as a deed
as of the day first written above.

	
  

  	
  BUYER:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A., a national

  banking association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

 

 

	
   

  	
  SELLER:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DCTRT
  SECURITIES HOLDCO LLC, a

  Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Dividend Capital Total Realty Operating

  
	
   

  	
   

  	
  Partnership, LP, a Delaware limited

  
	
   

  	
   

  	
  partnership, its sole member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By: Dividend Capital Total Realty Trust

  	
   

  
	
   

  	
   

  	
  Inc., a Maryland corporation, its general

  	
   

  
	
   

  	
   

  	
  partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
									

 

 2
 

 

 

	
  

  	
  SELLER:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TRT
  LENDING LLC, a Delaware limited

  liability company

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  DCTRT Securities Holdco LLC, a

  	
   

  
	
   

  	
   

  	
  Delaware limited liability company, its sole

  	
   

  
	
   

  	
   

  	
  member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Dividend Capital Total Realty

  
	
   

  	
   

  	
   

  	
  Operating Partnership, LP, a Delaware

  
	
   

  	
   

  	
   

  	
  limited partnership, its sole member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Dividend Capital Total Realty Trust

  
	
   

  	
   

  	
   

  	
   

  	
  Inc., a Maryland corporation, its

  
	
   

  	
   

  	
   

  	
   

  	
  general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  
										

 

 3
 

 

 

	
  

  	
  Acknowledged and agreed:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GUARANTOR

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DIVIDEND
  CAPITAL TOTAL REALTY

  TRUST INC., a Maryland corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
							

 

 4
 

 

 

	
  

  	
  GUARANTOR

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DIVIDEND
  CAPITAL TOTAL REALTY

  
	
   

  	
  OPERATING
  PARTNERSHIP, LP, a

  
	
   

  	
  Delaware limited
  partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Dividend Capital Total Realty Trust

  
	
   

  	
   

  	
  Inc., a Maryland corporation, its general

  
	
   

  	
   

  	
  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
						

 

 5

 

ANNEXES,
EXHIBITS AND SCHEDULES

	
  ANNEX I

  	
   

  	
  Names and Addresses for Communications between
  Parties

  
	
   

  	
   

  	
   

  
	
  SCHEDULE I

  	
   

  	
  Advance Rates and Applicable Pricing Rates

  
	
   

  	
   

  	
   

  
	
  EXHIBIT I

  	
   

  	
  Form of Confirmation

  
	
   

  	
   

  	
   

  
	
  EXHIBIT II

  	
   

  	
  Authorized Representatives of Seller

  
	
   

  	
   

  	
   

  
	
  EXHIBIT III

  	
   

  	
  Monthly Reporting Package

  
	
   

  	
   

  	
   

  
	
  EXHIBIT IV

  	
   

  	
  Form of Custodial Delivery

  
	
   

  	
   

  	
   

  
	
  EXHIBIT V

  	
   

  	
  Form of Power of Attorney

  
	
   

  	
   

  	
   

  
	
  EXHIBIT VI

  	
   

  	
  Representations and Warranties Regarding Individual
  Purchased Assets

  
	
   

  	
   

  	
   

  
	
  EXHIBIT VII

  	
   

  	
  Asset Information

  
	
   

  	
   

  	
   

  
	
  EXHIBIT VIII

  	
   

  	
  Advance Procedure

  
	
   

  	
   

  	
   

  
	
  EXHIBIT IX

  	
   

  	
  Form of Redirection Letter

  
	
   

  	
   

  	
   

  
	
  EXHIBIT X

  	
   

  	
  Form of Bailee Letter

  
	
   

  	
   

  	
   

  
	
  EXHIBIT XI

  	
   

  	
  Form of Guarantee

  
	
   

  	
   

  	
   

  
	
  EXHIBIT XII

  	
   

  	
  Form of Margin Deficit Notice

  
	
   

  	
   

  	
   

  
	
  EXHIBIT XIII

  	
   

  	
  UCC Filing Jurisdictions

  
	
   

  	
   

  	
   

  
	
  EXHIBIT XIV

  	
   

  	
  Form of Opinion(s)

  
	
   

  	
   

  	
   

  
	
  EXHIBIT XV

  	
   

  	
  Additional Eligible Collateral

  
	
   

  	
   

  	
   

  
	
  EXHIBIT XVI

  	
   

  	
  Form of Servicer Notice

  
	
   

  	
   

  	
   

  
	
  EXHIBIT XVII

  	
   

  	
  Form of Release Letter

  
	
   

  	
   

  	
   

  
	
  EXHIBIT XVIII

  	
   

  	
  [Intentionally omitted.]

  
	
   

  	
   

  	
   

  
	
  EXHIBIT XIX

  	
   

  	
  Covenant Compliance Certificate

  

 

 

ANNEX I

Names and Addresses for Communications Between Parties

Buyer:

JPMORGAN CHASE BANK, N.A.

270 Park Avenue, 7th Floor

New York, New York 10017-2014

Attention:              Mr.
Jeffrey Waller

Telephone:            (212) 834-9987

Telecopy:              (212) 834-6565

With copies to:

JPMORGAN CHASE BANK, N.A.

270 Park Avenue, 10th Floor

New York, New York 10017-2014

Attention:              Kunal
K. Singh

Telephone:            (212) 834-5467

Telecopy:              (212) 834-6593

and

Cadwalader Wickersham & Taft LLP

227 West Trade Street

Charlotte, North Carolina 28202

Attention:              Stuart
N. Goldstein, Esq.

Telephone:            (704) 348-5258

Telecopy:              (704) 348-5200

Sellers:

DCTRT Securities Holdco LLC and TRT Lending LLC

c/o Dividend Capital Total Realty Operating Partnership, LP

518 Seventeenth Street, 17th Floor

Denver, Colorado 80202

Attn: John Biallas

Phone: (303) 228-2200

Fax: (303) 228-2201

With copies to:

Brown Raysman Millstein Felder & Steiner

900 Third Avenue

New York, NY 10022-4728

Attention:              Mary
Sue Butch, Esq.

Telephone:            (212) 895-2101

Telecopy:              (212) 895-2900

 

SCHEDULE
I

Advance Rates and
Applicable Spreads

CMBS (Fixed/Floating)

	
  Rating

  	
   

  	
  Advance Rate

  	
   

  	
  Pricing (L+)

  
	
  AAA

  	
   

  	
  97

  	
   

  	
  5

  
	
  AA

  	
   

  	
  97

  	
   

  	
  7.5

  
	
  A

  	
   

  	
  95

  	
   

  	
  15

  
	
  A-

  	
   

  	
  95

  	
   

  	
  20

  
	
  BBB+

  	
   

  	
  92

  	
   

  	
  35

  
	
  BBB

  	
   

  	
  92

  	
   

  	
  35

  
	
  BBB-

  	
   

  	
  90

  	
   

  	
  50

  
	
  BB+

  	
   

  	
  85

  	
   

  	
  65

  
	
  BB

  	
   

  	
  85

  	
   

  	
  75

  
	
  BB-

  	
   

  	
  80

  	
   

  	
  85

  
	
  B+

  	
   

  	
  75

  	
   

  	
  95

  
	
  B

  	
   

  	
  75

  	
   

  	
  95

  
	
  B-

  	
   

  	
  70

  	
   

  	
  95

  
	
  NR

  	
   

  	
  35

  	
   

  	
  180

  

 

CRE CDO(1)

	
  Rating

  	
   

  	
  Advance Rate

  	
   

  	
  Pricing (L+)

  
	
  A+

  	
   

  	
  93

  	
   

  	
  20

  
	
  A

  	
   

  	
  92

  	
   

  	
  25

  
	
  A-

  	
   

  	
  91

  	
   

  	
  30

  
	
  BBB+

  	
   

  	
  90

  	
   

  	
  45

  
	
  BBB

  	
   

  	
  85

  	
   

  	
  45

  
	
  BBB-

  	
   

  	
  80

  	
   

  	
  65

  
	
  BB+

  	
   

  	
  75

  	
   

  	
  85

  
	
  BB

  	
   

  	
  70

  	
   

  	
  95

  
	
  BB-

  	
   

  	
  65

  	
   

  	
  105

  

 

Synthetic
CMBS(2)

	
  Rating

  	
   

  	
  Advance Rate

  	
   

  	
  Pricing (L+)

  
	
  AAA

  	
   

  	
  99.375

  	
   

  	
  NAP

  
	
  AA

  	
   

  	
  98.5

  	
   

  	
  NAP

  
	
  A

  	
   

  	
  97.5

  	
   

  	
  NAP

  
	
  BBB+

  	
   

  	
  94

  	
   

  	
  NAP

  
	
  BBB

  	
   

  	
  94

  	
   

  	
  NAP

  
	
  BBB-

  	
   

  	
  90

  	
   

  	
  NAP

  
	
  BB+

  	
   

  	
  85

  	
   

  	
  NAP

  

 

 

 

Accommodation Loans (Stabilized Whole Loans)

	
  Loan-to-Value (3) (4)

  	
   

  	
  Advance Rate

  	
   

  	
  Pricing (L+)

  
	
  Less than 80%

  	
   

  	
  90

  	
   

  	
  55

  
	
  Less than 80%

  	
   

  	
  75

  	
   

  	
  45

  

 

Senior Mortgage Loans
(Bridge/Transitional)(4)

	
  Loan-to-Value (3)

  	
   

  	
  Advance Rate

  	
   

  	
  Pricing (L+)

  
	
  Less than 80%

  	
   

  	
  75

  	
   

  	
  150

  
	
  Less than 80%

  	
   

  	
  60

  	
   

  	
  120

  

 

Junior
Interests

	
  Loan-to-Value (3)

  	
   

  	
  Advance Rate

  	
   

  	
  Pricing (L+)

  
	
  56%-60%

  	
   

  	
  60

  	
   

  	
  65

  
	
  56%-60%

  	
   

  	
  85

  	
   

  	
  80

  
	
  61%-65%

  	
   

  	
  60

  	
   

  	
  65

  
	
  61%-65%

  	
   

  	
  85

  	
   

  	
  90

  
	
  66%-70%

  	
   

  	
  60

  	
   

  	
  65

  
	
  66%-70%

  	
   

  	
  80

  	
   

  	
  115

  
	
  71%-75%

  	
   

  	
  60

  	
   

  	
  65

  
	
  71%-75%

  	
   

  	
  75

  	
   

  	
  140

  
	
  76%-80%

  	
   

  	
  60

  	
   

  	
  100

  
	
  76%-80%

  	
   

  	
  70

  	
   

  	
  150

  
	
  81%-85%

  	
   

  	
  60

  	
   

  	
  170

  
	
  81%-85%

  	
   

  	
  65

  	
   

  	
  170

  
	
  86%-90%

  	
   

  	
  60

  	
   

  	
  195

  
	
  86%-90%

  	
   

  	
  50

  	
   

  	
  195

  

 

(1) JPMorgan
Loan-to-Value.

 

Mezzanine Loans

	
  Loan-to-Value (3)

  	
   

  	
  Advance Rate

  	
   

  	
  Applicable Spread (in basis points)

  
	
  56%-60%

  	
   

  	
  60

  	
   

  	
  70

  
	
  56%-60%

  	
   

  	
  85

  	
   

  	
  90

  
	
  61%-65%

  	
   

  	
  60

  	
   

  	
  70

  
	
  61%-65%

  	
   

  	
  85

  	
   

  	
  100

  
	
  66%-70%

  	
   

  	
  60

  	
   

  	
  70

  
	
  66%-70%

  	
   

  	
  75

  	
   

  	
  130

  
	
  71%-75%

  	
   

  	
  60

  	
   

  	
  70

  
	
  71%-75%

  	
   

  	
  70

  	
   

  	
  155

  
	
  76%-80%

  	
   

  	
  60

  	
   

  	
  110

  
	
  76%-80%

  	
   

  	
  65

  	
   

  	
  170

  
	
  81%-85%

  	
   

  	
  60

  	
   

  	
  190

  
	
  86%-90%

  	
   

  	
  60

  	
   

  	
  215

  
	
  86%-90%

  	
   

  	
  50

  	
   

  	
  215

  

(1)          With respect to CRECDO paper issued by Seller, Seller will only be able
to repo securities rated BBB- or higher

 

 

(2)          Synthetic
CMBS advance rates represent the amount of financing the Purchaser is willing
to provide for “long” positions in Credit Default Swaps referencing eligible
CMBS obligations (i.e., selling protection).

(3)          JPMorgan
Loan-to-Value determined by Buyer in its sole discretion based on the lesser of
the related acquisition price or the appraised value set forth in an appraisal
obtained by Buyer.

(4)          Bridge/Transitional Loans do not include any loans secured substantially
by land only.  The Advance Rate and
Applicable Spread for any loans secured substantially by land only will be
determined by Buyer in its sole and absolute discretion.

 

EXHIBIT I

CONFIRMATION
STATEMENT

JPMORGAN CHASE BANK, N.A.

Ladies and Gentlemen:

JPMorgan Chase Bank, N.A., is pleased to deliver our written CONFIRMATION of our agreement to enter into the Transaction
pursuant to which JPMorgan Chase Bank, N.A. shall purchase from you the
Purchased Assets identified on the attached Schedule 1 pursuant to
the Master Repurchase Agreement, dated as of October 26, 2006 (the “Agreement”), between
JPMorgan Chase Bank, N.A. (the “Buyer”)
and [SELLER] (the “Seller”)
on the following terms.  Capitalized
terms used herein without definition have the meanings given in the Agreement.

	
  Purchase Date:

  	
                    ,
  200  

  
	
   

  	
   

  
	
  Purchased Assets:

  	
  As identified on attached Schedule 1

  
	
   

  	
   

  
	
  Aggregate Principal Amount of

  Purchased Assets:

  	
  As identified on attached Schedule 1

  
	
   

  	
   

  
	
  Repurchase Date:

  	
   

  
	
   

  	
   

  
	
  Purchase Price:

  	
  $

  
	
   

  	
   

  
	
  Pricing Rate:

  	
  one month LIBOR plus      %

  
	
   

  	
   

  
	
  Advance Rate:

  	
   

  
	
   

  	
   

  
	
  Governing Agreements:

  	
  As identified on attached Schedule 1

  
	
   

  	
   

  
	
  Name and address for

  communications:

  	
  Buyer:

  	
  JPMorgan Chase Bank, N.A.

  270 Park Avenue, 7th Floor

  
	
   

  	
   

  	
  New York, New York 10017-2014

  
	
   

  	
   

  	
  Attention:

  	
  Mr. Jeffrey Waller

  
	
   

  	
   

  	
  Telephone:

  	
  (212) 834-9987

  
	
   

  	
   

  	
  Telecopy:

  	
  (212) 834-6565

  
	
   

  	
  With a

  copy to

  	
  JPMorgan Chase Bank, N.A.

  270 Park Avenue, 10th Floor

  
	
   

  	
   

  	
  New York, New York 10017-2014

  
	
   

  	
   

  	
  Attention:

  	
  Mr. Kunal K. Singh

  
	
   

  	
   

  	
  Telephone:

  	
  (212) 834-5467

  
	
   

  	
   

  	
  Telecopy:

  	
  (212) 834-6593

  
	
   

  	
  Seller:

  	
  [SELLER]

  	
   

  
	
   

  	
   

  	
  518 Seventeenth Street, 17th Floor

  Denver, Colorado 80202

  Attention: [   ]

  Telephone: [   ]

  Telecopy: [   ]

  

 

 

 

	
   

  	
  JPMORGAN CHASE BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  AGREED AND ACKNOWLEDGED:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  [SELLER]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

Schedule 1 to Confirmation Statement

Purchased Assets:

Aggregate
Principal Amount:

 

EXHIBIT
II

AUTHORIZED
REPRESENTATIVES OF SELLERS

	
  Name

  	
   

  	
  Specimen Signature

  
	
  Marc J. Warren

  	
   

  	
   

  
	
  James R. Giuliano III

  	
   

  	
   

  
	
  John E. Biallas

  	
   

  	
   

  
	
  Karen B. Kulvin

  	
   

  	
   

  
	
  Troy J. Bloom

  	
   

  	
   

  

 

 

EXHIBIT
III

MONTHLY REPORTING
PACKAGE

[SAMPLE TO BE
ATTACHED]

·                                          Monthly
Reporting Package shall include, inter alia, the
following:

·                                          Listing
of all Eligible Assets reflecting payment status.

·                                          Listing
of all interest rate hedging positions outlining compliance with interest rate
hedging requirements.

·                                          Any
and all financial statements and rent rolls, to the extent that the Eligible
Asset borrower is obligated to provide same.

·                                          Servicing
tape with respect to each Eligible Asset conforming to CMSA standards.

 

EXHIBIT IV

FORM OF CUSTODIAL
DELIVERY

On this         of              ,
200  , [SELLER], a Delaware limited liability company, as Seller (“Seller”)
under that certain Master Repurchase Agreement, dated as of October 26, 2006
(the “Repurchase Agreement”)
between JPMorgan Chase Bank, N.A. (“Buyer”) and Seller, does hereby deliver to
LaSalle Bank National Association (“Custodian”), as custodian under that certain
Custodial Agreement, dated as of October 26, 2006 (the “Custodial Agreement”),
among Buyer, Custodian and Seller, the Purchased Asset Files with respect to
the Purchased Assets to be purchased by Buyer pursuant to the Repurchase
Agreement, which Purchased Assets are listed on the Purchased Asset Schedule
attached hereto and which Purchased Assets shall be subject to the terms of the
Custodial Agreement on the date hereof.

With respect to the Purchased Asset Files delivered
hereby, for the purposes of issuing the Trust Receipt, the Custodian shall
review the Purchased Asset Files to ascertain delivery of the documents listed
in Section 2(a) of the Custodial Agreement.

Capitalized terms used herein and not otherwise
defined shall have the meanings set forth in the Custodial Agreement.

IN WITNESS WHEREOF, Seller has caused its name to be
signed hereto by its officer thereunto duly authorized as of the day and year
first above written.

	
   

  	
  [SELLER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Purchased Asset Schedule
to Custodial Delivery

Purchased Assets

 

EXHIBIT V

FORM OF POWER OF ATTORNEY

“Know All Men by
These Presents, that [SELLER], a Delaware limited liability company (“Seller”),
does hereby appoint JPMorgan Chase Bank, N.A. (“Buyer”), its attorney in
fact to act in Seller’s name, place and stead in any way that Seller could do
with respect to (i) the completion of the endorsements of the Mortgage Notes
and the Mezzanine Notes and the Assignments of Mortgages, (ii) the recordation
of the Assignments of Mortgages and (iii) the enforcement of Seller’s rights
under the Purchased Assets purchased by Buyer pursuant to the Master Repurchase
Agreement dated as of October 26, 2006 (the “Repurchase Agreement”),
among Buyer and Seller, and to take such other steps as may be necessary or
desirable to enforce Buyer’s rights against such Purchased Assets, the related
Purchased Asset Files and the Servicing Records to the extent that Seller is
permitted by law to act through an agent.

TO INDUCE ANY THIRD PARTY TO ACT HEREUNDER, SELLER
HEREBY AGREES THAT ANY THIRD PARTY RECEIVING A DULY EXECUTED COPY OR FACSIMILE
OF THIS INSTRUMENT MAY ACT HEREUNDER, AND THAT REVOCATION OR TERMINATION HEREOF
SHALL BE INEFFECTIVE AS TO SUCH THIRD PARTY UNLESS AND UNTIL ACTUAL NOTICE OR
KNOWLEDGE OR SUCH REVOCATION OR TERMINATION SHALL HAVE BEEN RECEIVED BY SUCH
THIRD PARTY, AND SELLER ON ITS OWN BEHALF AND ON BEHALF OF SELLER’S ASSIGNS,
HEREBY AGREES TO INDEMNIFY AND HOLD HARMLESS ANY SUCH THIRD PARTY FROM AND
AGAINST ANY AND ALL CLAIMS THAT MAY ARISE AGAINST SUCH THIRD PARTY BY REASON OF
SUCH THIRD PARTY HAVING RELIED ON THE PROVISIONS OF THIS INSTRUMENT.

IN WITNESS WHEREOF Seller has caused this Power of
Attorney to be executed as a deed this      day of       ,
200  .

	
  

  	
  [SELLER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT VI

REPRESENTATIONS
AND WARRANTIES

REGARDING EACH INDIVIDUAL PURCHASED ASSET

THAT IS A WHOLE MORTGAGE LOAN, AN ACCOMMODATION LOAN, A-NOTE OR 

SENIOR PARTICIPATION INTEREST

(a)           As applicable, each Purchased Asset
is either a whole loan and not a participation interest in a whole loan, a
senior participation interest in a whole loan, or an A-note interest in a
whole loan.  The sale of the Purchased
Assets to Buyer or its designee does not require Seller to obtain any
governmental or regulatory approval or consent that has not been obtained.

(b)           No Purchased Asset is 30 days or more
delinquent in payment of principal and interest (without giving effect to any
applicable grace period) and no Purchased Asset has been 30 days or more
(without giving effect to any applicable grace period in the related Mortgage
Note) past due.

(c)           Except with respect to the ARD Loans,
which provide that the rate at which interest accrues thereon increases after
the Anticipated Repayment Date, the Purchased Assets (exclusive of any default interest,
late charges or prepayment premiums) are fixed rate mortgage loans or floating
rate mortgage loans with terms to maturity, at origination or as of the most
recent modification, as set forth in the Purchased Asset Schedule.

(d)           The information pertaining to each
Purchased Asset set forth on the Purchased Asset Schedule is true and correct
in all material respects as of the Purchase Date.

(e)           At the time of the assignment of the
Purchased Assets to Buyer, Seller had good and marketable title to and was the
sole owner and holder of, each Purchased Asset, free and clear of any pledge,
lien, encumbrance or security interest and such assignment validly and
effectively transfers and conveys all legal and beneficial ownership of the
Purchased Assets to Buyer free and clear of any pledge, lien, encumbrance or
security interest, subject to the rights and obligations of Seller pursuant to
the Agreement.

(f)            In respect of each Purchased Asset,
(A) the related Mortgagor is an entity organized under the laws of a state of
the United States of America, the District of Columbia or the Commonwealth of
Puerto Rico and (B) the Mortgagor is not a debtor in any bankruptcy,
receivership, conservatorship, reorganization, insolvency, moratorium or
similar proceeding.

(g)           Each Purchased Asset is secured by
(or in the case of a Participation, the Underlying Mortgage Loan is secured by)
a Mortgage that establishes and creates a valid and subsisting first priority
lien on the related underlying real estate directly or indirectly securing or
supporting such Purchased 

 

Asset, or leasehold
interest therein, comprising real estate (the “Mortgaged Property”), free and clear of any
liens, claims, encumbrances, participation interests, pledges, charges or
security interests subject only to Permitted Encumbrances.  Such Mortgage, together with any separate
security agreement, UCC Financing Statement or similar agreement, if any,
establishes and creates a first priority security interest in favor of Seller
in all personal property owned by the Mortgagor that is used in, and is
reasonably necessary to, the operation of the related Mortgaged Property and,
to the extent a security interest may be created therein and perfected by the
filing of a UCC Financing Statement under the Uniform Commercial Code as in
effect in the relevant jurisdiction, the proceeds arising from the Mortgaged
Property and other collateral securing such Purchased Asset, subject only to
Permitted Encumbrances.  There exists
with respect to such Mortgaged Property an assignment of leases and rents
provision, either as part of the related Mortgage or as a separate document or
instrument, which establishes and creates a first priority security interest in
and to leases and rents arising in respect of the related Mortgaged Property
subject only to Permitted Encumbrances. 
No person other than the related Mortgagor and the mortgagee owns any
interest in any payments due under the related leases.  The related Mortgage or such assignment of
leases and rents provision provides for the appointment of a receiver for rents
or allows the holder of the related Mortgage to enter into possession of the
related Mortgaged Property to collect rent or provides for rents to be paid
directly to the holder of the related Mortgage in the event of a default beyond
applicable notice and grace periods, if any, under the related Purchased Asset
Documents.  As of the origination date,
there are no mechanics’ or other similar liens or claims that have been filed
for work, labor or materials affecting the related Mortgaged Property that are
or may be prior or equal to the lien of the Mortgage, except those that are
insured against pursuant to the applicable Title Insurance Policy (as defined
below). As of the Purchase Date, there are no mechanics’ or other similar liens
or claims that have been filed for work, labor or materials affecting the
related Mortgaged Property that are or may be prior or equal in priority to the
lien of the Mortgage, except those that are insured against pursuant to the
applicable Title Policy (as defined below). 
No (a) Mortgaged Property secures any mortgage loan not represented on
the Purchased Asset Schedule, (b) Purchased Asset is cross-defaulted with
any other mortgage loan, other than a Mortgage Loan listed on the Purchased Asset
Schedule, or (c) Purchased Asset is secured by property that is not a Mortgaged
Property.

(h)           The related Mortgagor under each
Purchased Asset has good and indefeasible fee simple or, with respect to those
Purchased Assets described in clause (21) hereof, leasehold title to the
related Mortgaged Property comprising real estate subject to any Permitted
Encumbrances.

(i)            Seller has received an American Land
Title Association (ALTA) lender’s title insurance policy or a comparable form
of lender’s title insurance policy (or escrow instructions binding on the Title
Insurer (as defined below) and irrevocably obligating the Title Insurer to
issue such title insurance policy, a title policy commitment or pro-forma
“marked up” at
the closing of the related 

 

Purchased Asset and
countersigned by the Title Insurer or its authorized agent) as adopted in the
applicable jurisdiction (the “Title
Policy”), which was issued by a nationally recognized title
insurance company (the “Title
Insurer”) qualified to do business in the jurisdiction where
the applicable Mortgaged Property is located, covering the portion of each
Mortgaged Property comprised of real estate and insuring that the related
Mortgage is a valid first lien in the original principal amount of the related Purchased
Asset on the Mortgagor’s fee simple interest (or, if applicable, leasehold
interest) in such Mortgaged Property comprised of real estate subject only to
Permitted Encumbrances.  Such Title
Policy was issued in connection with the origination of the related Purchased
Asset. No claims have been made under such Title Policy.  Such Title Policy is in full force and effect
and all premiums thereon have been paid and will provide that the insured
includes the owner of the Purchased Asset and its successors and/or assigns. No
holder of the related Mortgage has done, by act or omission, anything that
would, and Seller has no actual knowledge of any other circumstance that would,
impair the coverage under such Title Policy.

(j)            The related Assignment of Mortgage
and the related assignment of the Assignment of Leases and Rents executed in
connection with each Mortgage, if any, have been recorded in the applicable
jurisdiction (or, if not recorded, have been submitted for recording or are in
recordable form) and constitute the legal, valid and binding assignment of such
Mortgage and the related assignment of leases and rents from Seller to
Buyer.  The endorsement of the related
Mortgage Note by Seller constitutes the legal, valid, binding and enforceable
(except as such enforcement may be limited by anti-deficiency laws or
bankruptcy, receivership, conservatorship, reorganization, insolvency,
moratorium or other similar laws affecting the enforcement of creditors’ rights
generally, and by general principles of equity (regardless of whether such
enforcement is considered in a proceeding in equity or at law)) assignment of
such Mortgage Note, and together with such Assignment of Mortgage and the
related assignment of assignment of leases and rents, legally and validly
conveys all right, title and interest in such Purchased Asset and (except in
the case of an A Note or a Participation) the Purchased Asset Documents to
Buyer.

(k)           The Purchased Asset Documents for
each Purchased Asset (or in the case of a Participation, the Underlying
Mortgage Loan) provide that such Purchased Asset (or Underlying Mortgage Loan)
is non-recourse except that the related Mortgagor and at least one
individual or entity shall be fully liable for actual losses, liabilities,
costs and damages arising from at least the following acts of the related
Mortgagor and/or its principals: (i) fraud or material misrepresentation, (ii)
misapplication or misappropriation of rents, insurance proceeds or condemnation
awards, (iii) any act of actual waste, and (iv) any breach of the environmental
covenants contained in the related Purchased Asset Documents.

(l)            The Purchased Asset Documents for
each Purchased Asset contain enforceable provisions such as to render the
rights and remedies of the holder 

 

thereof adequate for the
practical realization against the Mortgaged Property of the principal benefits
of the security intended to be provided thereby, including realization by
judicial or, if applicable, non judicial foreclosure, and there is no exemption
available to the related Mortgagor that would interfere with such right of
foreclosure except (i) any statutory right of redemption or (ii) any limitation
arising under anti deficiency laws or by bankruptcy, receivership,
conservatorship, reorganization, insolvency, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally, and by general
principles of equity (regardless of whether such enforcement is considered in a
proceeding in equity or at law).

(m)          Each of the related Mortgage Notes and
Mortgages are the legal, valid and binding obligations of the related Mortgagor
named on the Purchased Asset Schedule and each of the other related Purchased
Asset Documents is the legal, valid and binding obligation of the parties
thereto (subject to any non recourse provisions therein), enforceable in
accordance with its terms, except as such enforcement may be limited by anti
deficiency laws or bankruptcy, receivership, conservatorship, reorganization,
insolvency, moratorium or other similar laws affecting the enforcement of
creditors’ rights generally, and by general principles of equity (regardless of
whether such enforcement is considered in a proceeding in equity or at law),
and except that certain provisions of such Purchased Asset Documents are or may
be unenforceable in whole or in part under applicable state or federal laws,
but the inclusion of such provisions does not render any of the Purchased Asset
Documents invalid as a whole, and such Purchased Asset Documents taken as a
whole are enforceable to the extent necessary and customary for the practical
realization of the principal rights and benefits afforded thereby.

(n)           The terms of the Purchased Assets or
the related Purchased Asset Documents, (including, in the case of a
Participation, the documents evidencing the Underlying Mortgage Loan) have not
been altered, impaired, modified or waived in any material respect, except
prior to the Purchase Date by written instrument duly submitted for
recordation, to the extent required, and as specifically set forth by a
document in the related Purchased Asset File.

(o)           With respect to each Mortgage that is
a deed of trust, a trustee, duly qualified under applicable law to serve as
such, currently so serves and is named in the deed of trust or has been
substituted in accordance with applicable law, and no fees or expenses are or
will become payable to the trustee under the deed of trust, except in
connection with a trustee’s sale after default by the Mortgagor other than de minimis fees paid in connection with
the release of the related Mortgaged Property or related security for such
Purchased Asset following payment of such Purchased Asset in full.

(p)           No Purchased Asset has been satisfied
(other than by principal payments that have been made), canceled, subordinated,
released or rescinded, in 

 

whole or in part, and the
related Mortgagor has not been released, in whole or in part, from its
obligations under any related Purchased Asset Document.

(q)           Except with respect to the
enforceability of any provisions requiring the payment of default interest,
late fees, additional interest, prepayment premiums or yield maintenance
charges, neither the Purchased Asset nor any of the related Purchased Asset
Documents is subject to any right of rescission, set-off, abatement,
diminution, valid counterclaim or defense, including the defense of usury, nor
will the operation of any of the terms of any such Purchased Asset Documents,
or the exercise (in compliance with procedures permitted under applicable law)
of any right thereunder, render any Purchased Asset Documents subject to any
right of rescission, set-off, abatement, diminution, valid counterclaim
or defense, including the defense of usury (subject to anti-deficiency or
one form of action laws and to bankruptcy, receivership, conservatorship,
reorganization, insolvency, moratorium or other similar laws affecting the
enforcement of creditor’s rights generally and by general principles of equity
(regardless of whether such enforcement is considered in a proceeding in equity
or at law)), and no such right of rescission, set-off, abatement,
diminution, valid counterclaim or defense has been asserted with respect
thereto.  None of the Purchased Asset
Documents provides for a release of a portion of the Mortgaged Property from
the lien of the Mortgage except upon payment or defeasance in full of all
obligations under the Mortgage, provided that, notwithstanding the
foregoing, certain of the Purchased Assets may allow partial release (a) upon
payment or defeasance of an allocated loan amount which may be formula based,
but in no event less than 125% of the allocated loan amount, or (b) in the
event the portion of the Mortgaged Property being released was not given any
material value in connection with the underwriting or appraisal of the related
Purchased Asset.

(r)            As of the Purchase Date, there is no
payment default, giving effect to any applicable notice and/or grace period,
and there is no other material default under any of the related Purchased Asset
Documents, giving effect to any applicable notice and/or grace period; no such
material default or breach has been waived by Seller or on its behalf or, by
Seller’s predecessors in interest with respect to the Purchased Assets; and no
event has occurred that, with the passing of time or giving of notice would
constitute a material default or breach under the related Purchased Asset
Documents.  No Purchased Asset has been
accelerated and no foreclosure or power of sale proceeding has been initiated
in respect of the related Mortgage. 
Seller has not waived any material claims against the related Mortgagor
under any non-recourse exceptions contained in the Mortgage Note.

(s)           The principal amount of the Purchased
Asset stated on the Purchased Asset Schedule has been fully disbursed as of the
Purchase Date (except for certain amounts that were fully disbursed by the
mortgagee, but escrowed pursuant to the terms of the related Purchased Asset
Documents) and there are no future advances required to be made by the
mortgagee under any of the related Purchased Asset Documents.  Any requirements under the related 

 

Purchased Asset Documents
regarding the completion of any on-site or off-site improvements
and to disbursements of any escrow funds therefor have been or are being complied
with or such escrow funds are still being held. 
The value of the Mortgaged Property relative to the value reflected in
the most recent appraisal thereof is not materially impaired by any
improvements that have not been completed. 
Seller has not, nor, have any of its agents or predecessors in interest
with respect to the Purchased Assets, in respect of such Purchased Asset,
directly or indirectly, advanced funds or induced, solicited or knowingly
received any advance of funds by a party other than the Mortgagor other than
(a) interest accruing on such Purchased Asset from the date of such
disbursement of such Purchased Asset to the date which preceded by thirty (30)
days the first payment date under the related Mortgage Note and (b) application
and commitment fees, escrow funds, points and reimbursements for fees and
expenses, incurred in connection with the origination and funding of the
Purchased Asset.

(t)            No Purchased Asset has capitalized
interest included in its principal balance, or provides for any shared
appreciation rights or other equity participation therein and no contingent or
additional interest contingent on cash flow or, except for ARD Loans, negative
amortization accrues or is due thereon.

(u)           Each Purchased Asset identified in
the Purchased Asset Schedule as an ARD Loan substantially fully amortizes over
its stated term, which term is at least 60 months after the related Anticipated
Repayment Date.  Each ARD Loan has an
Anticipated Repayment Date not less than seven years following the origination
of such Purchased Asset.  If the related
Mortgagor elects not to prepay its ARD Loan in full on or prior to the
Anticipated Repayment Date pursuant to the existing terms of the Purchased
Asset or a unilateral option (as defined in Treasury Regulations under Article
1001 of the Code) in the Purchased Asset exercisable during the term of the
Mortgage Loan, (i) the Purchased Asset’s interest rate will step up to an
interest rate per annum as specified in the related Purchased Asset Documents; provided,
however, that payment of such Excess Interest shall be deferred until
the principal of such ARD Loan has been paid in full; (ii) all or a substantial
portion of the Excess Cash Flow collected after the Anticipated Repayment Date
shall be applied towards the prepayment of such ARD Loan and once the principal
balance of an ARD Loan has been reduced to zero all Excess Cash Flow will be
applied to the payment of accrued Excess Interest; and (iii) if the property
manager for the related Mortgaged Property can be removed by or at the
direction of the mortgagee on the basis of a debt service coverage test, the
subject debt service coverage ratio shall be calculated without taking account
of any increase in the related Mortgage Interest Rate on such Purchased Asset’s
Anticipated Repayment Date.  No ARD Loan
provides that the property manager for the related Mortgaged Property can be
removed by or at the direction of the mortgagee solely because of the passage
of the related Anticipated Repayment Date.

(v)           Each Purchased Asset identified in
the Purchased Asset Schedule as an ARD Loan with a hard lockbox requires that
tenants at the related 

 

Mortgaged Property shall
(and each Purchased Asset identified in the Purchased Asset Schedule as an ARD
Loan with a springing lockbox requires that tenants at the related Mortgaged
Property shall, upon the occurrence of a specified trigger event, including,
but not limited to, the occurrence of the related Anticipated Repayment Date)
make rent payments into a lockbox controlled by the holder of the Purchased
Asset and to which the holder of the Purchased Asset has a first perfected
security interest; provided  however, with respect to each ARD Loan
that is secured by a multi-family property with a hard lockbox, or with respect
to each ARD Loan that is secured by a multi-family property with a springing
lockbox, upon the occurrence of a specified trigger event, including, but not
limited to, the occurrence of the related Anticipated Repayment Date, tenants
either pay rents to a lockbox controlled by the holder of the Mortgage Loan or
deposit rents with the property manager who will then deposit the rents into a
lockbox controlled by the holder of the Purchased Asset.

(w)          The terms of the Purchased Asset
Documents evidencing such Purchased Asset comply in all material respects with
all applicable local, state and federal laws, and regulations and Seller has
complied with all material requirements pertaining to the origination, funding
and servicing of the Purchased Assets, including but not limited to, usury and
any and all other material requirements of any federal, state or local law to
the extent non-compliance would have a Material Adverse Effect on the
Purchased Asset.

(x)            The related Mortgaged Property is,
in all material respects, in compliance with, and is used and occupied in
accordance with, all restrictive covenants of record applicable to such
Mortgaged Property and applicable zoning laws and all inspections, licenses,
permits and certificates of occupancy required by law, ordinance or regulation
to be made or issued with regard to the Mortgaged Property have been obtained
and are in full force and effect, except to the extent (a) any material non-compliance
with applicable zoning laws is insured by an ALTA lender’s title insurance
policy (or binding commitment therefor), or the equivalent as adopted in the
applicable jurisdiction, or a law and ordinance insurance policy, or (b) the
failure to obtain or maintain such inspections, licenses, permits or
certificates of occupancy does not materially impair or materially and
adversely affect the use and/or operation of the Mortgaged Property as it was
used and operated as of the date of origination of the Purchased Asset or the
rights of a holder of the related Purchased Asset.

(y)           All (a) taxes, water charges, sewer
rents, assessments or other similar outstanding governmental charges and
governmental assessments that became due and owing prior to the Purchase Date
in respect of the related Mortgaged Property (excluding any related personal
property), and that if left unpaid, would be, or might become, a lien on such
Mortgaged Property having priority over the related Mortgage and (b) insurance
premiums or ground rents that became due and owing prior to the Purchase Date
in respect of the related Mortgaged Property (excluding any related personal
property), have been paid, or if any such items are disputed, an escrow of
funds in an amount sufficient 

 

(together with escrow
payments required to be made prior to delinquency) to cover such taxes and
assessments and any late charges due in connection therewith has been
established.  As of the date of
origination, the related Mortgaged Property consisted of one or more separate
and complete tax parcels.  For purposes
of this representation and warranty, the items identified herein shall not be
considered due and owing until the date on which interest or penalties would be
first payable thereon.

(z)            None of the improvements that were
included for the purpose of determining the appraised value of the related
Mortgaged Property at the time of the origination of such Purchased Asset lies
outside the boundaries and building restriction lines of such Mortgaged
Property, except to the extent that they are legally nonconforming as
contemplated by the representation in clause (48) below, and no improvements on
adjoining properties encroach upon such Mortgaged Property, with the exception
in each case of (a) immaterial encroachments that do not materially adversely
affect the security intended to be provided by the related Mortgage or the use,
enjoyment, value or marketability of such Mortgaged Property or (b)
encroachments affirmatively covered by the related Title Policy.  With respect to each Purchased Asset, the property
legally described in the survey, if any, obtained for the related Mortgaged
Property for purposes of the origination thereof is the same as the property
legally described in the Mortgage.

(aa)         As of the date of the applicable
engineering report (which was performed within 12 months prior to the Purchase
Date) related to the Mortgaged Property and, as of the Purchase Date, the
related Mortgaged Property is either (i) in good repair, free and clear of any
damage that would materially adversely affect the value of such Mortgaged
Property as security for such Purchased Asset or the use and operation of the
Mortgaged Property as it was being used or operated as of the origination date
or (ii) escrows in an amount consistent with the standard utilized by Seller
with respect to similar loans it holds for its own account have been
established, which escrows will in all events be not less than 100% of the
estimated cost of the required repairs. 
The Mortgaged Property has not been damaged by fire, wind or other
casualty or physical condition (including, without limitation, any soil erosion
or subsidence or geological condition), which damage has not either been fully
repaired or fully insured, or for which escrows in an amount consistent with
the standard utilized by Seller with respect to loans it holds for its own
account have not been established.

(bb)         There are no proceedings pending or
threatened, for the partial or total condemnation of the relevant Mortgaged
Property.

(cc)         The Purchased Assets that are
identified as being secured in whole or in part by a leasehold estate (a “Ground Lease”) (except
with respect to any Purchased Asset also secured by the related fee interest in
the Mortgaged Property), satisfy the following conditions:

 

I.                                         such
Ground Lease or a memorandum thereof has been or will be duly recorded; such
Ground Lease, or other agreement received by the originator of the Purchased
Asset from the ground lessor, provides that the interest of the lessee
thereunder may be encumbered by the related Mortgage and does not restrict the
use of the related Mortgaged Property by such lessee, its successors or
assigns, in a manner that would materially and adversely affect the security
provided by the Mortgage; as of the date of origination of the Purchased Asset
(or in the case of a Participation, the Underlying Mortgage Loan), there was no
material change of record in the terms of such Ground Lease with the exception
of written instruments that are part of the related Purchased Asset File and
there has been no material change in the terms of such Ground Lease since the
recordation of the related Purchased Asset, with the exception of written
instruments that are part of the related Purchased Asset File;

II.                                     such
Ground Lease is not subject to any liens or encumbrances superior to, or of
equal priority with, the related Mortgage, other than the related fee interest
and Permitted Encumbrances and such Ground Lease is, and shall remain, prior to
any mortgage or other lien upon the related fee interest unless a
nondisturbance agreement is obtained from the holder of any mortgage on the fee
interest that is assignable to or for the benefit of the related lessee and the
related mortgagee;

III.                                 such
Ground Lease provides that upon foreclosure of the related Mortgage or
assignment of the Mortgagor’s interest in such Ground Lease in lieu thereof,
the mortgagee under such Mortgage is entitled to become the owner of such
interest upon notice to, but without the consent of, the lessor thereunder and,
in the event that such mortgagee becomes the owner of such interest, such
interest is further assignable by such mortgagee and its successors and assigns
upon notice to such lessor, but without a need to obtain the consent of such
lessor;

IV.                                 such
Ground Lease is in full force and effect and no default of tenant or ground
lessor was in existence at origination, or is currently in existence under such
Ground Lease, nor at origination was, or is there any condition that, but for
the passage of time or the giving of notice, would result in a default under
the terms of such Ground Lease; either such Ground Lease or a separate
agreement contains the ground lessor’s covenant that it shall not amend,
modify, cancel or terminate such Ground Lease without the prior written consent
of the mortgagee under such Mortgage and any amendment, modification,
cancellation or termination of the Ground Lease without the prior written
consent of the related

 

mortgagee, or its
successors or assigns is not binding on such mortgagee, or its successor or
assigns;

V.                                     such
Ground Lease or other agreement requires the lessor thereunder to give written
notice of any material default by the lessee to the mortgagee under the related
Mortgage, provided that such mortgagee has provided the lessor with
notice of its lien in accordance with the provisions of such Ground Lease; and
such Ground Lease or other agreement provides that no such notice of default
and no termination of the Ground Lease in connection with such notice of
default shall be effective against such mortgagee unless such notice of default
has been given to such mortgagee and any related Ground Lease contains the
ground lessor’s covenant that it will give to the related mortgagee, or its
successors or assigns, any notices it sends to the Mortgagor;

VI.                                 either
(i) the related ground lessor has subordinated its interest in the related
Mortgaged Property to the interest of the holder of the Purchased Asset (or in
the case of a Participation, the Underlying Mortgage Loan) or (ii) such Ground
Lease or other agreement provides that (A) the mortgagee under the related
Mortgage is permitted a reasonable opportunity to cure any default under such
Ground Lease that is curable, including reasonable time to gain possession of
the interest of the lessee under the Ground Lease, after the receipt of notice
of any such default before the lessor thereunder may terminate such Ground
Lease; (B) in the case of any such default that is not curable by such
mortgagee, or in the event of the bankruptcy or insolvency of the lessee under
such Ground Lease, such mortgagee has the right, following termination of the
existing Ground Lease or rejection thereof by a bankruptcy trustee or similar
party, to enter into a new ground lease with the lessor on substantially the
same terms as the existing Ground Lease; and (C) all rights of the Mortgagor
under such Ground Lease may be exercised by or on behalf of such mortgagee
under the related Mortgage upon foreclosure or assignment in lieu of
foreclosure;

VII.                             such
Ground Lease has an original term (or an original term plus one or more
optional renewal terms that under all circumstances may be exercised, and will
be enforceable, by the mortgagee or its assignee) that extends not less than 20
years beyond the stated maturity date of the related Purchased Asset (or in the
case of a Participation, of the Underlying Mortgage Loan);

VIII.                         under the
terms of such Ground Lease and the related Mortgage, taken together, any
related insurance proceeds will be applied either to the repair or restoration
of all or part of the related

 

Mortgaged Property, with
the mortgagee under such Mortgage or a financially responsible institution
acting as trustee appointed by it, or consented to by it, or by the lessor
having the right to hold and disburse such proceeds as the repair or
restoration progresses (except in such cases where a provision entitling
another party to hold and disburse such proceeds would not be viewed as
commercially unreasonable by a prudent institutional lender), or to the payment
in whole or in part of the outstanding principal balance of such Purchased
Asset together with any accrued and unpaid interest thereon; and

IX.                                such
Ground Lease does not impose any restrictions on subletting that would be
viewed as commercially unreasonable by Seller; such Ground Lease contains a
covenant (or applicable laws provide) that the lessor thereunder is not
permitted, in the absence of an uncured default, to disturb the possession,
interest or quiet enjoyment of any lessee in the relevant portion of such
Mortgaged Property subject to such Ground Lease for any reason, or in any
manner, which would materially adversely affect the security provided by the
related Mortgage.

(dd)                          An
Environmental Site Assessment relating to each Mortgaged Property and prepared
no earlier than 12 months prior to the Purchase Date was obtained and reviewed
by Seller in connection with the origination of such Purchased Asset and a copy
is included in the Purchased Asset File.

(ee)                            There
are no adverse circumstances or conditions with respect to or affecting the
Mortgaged Property that would constitute or result in a material violation of
any applicable federal, state or local environmental laws, rules and
regulations (collectively, “Environmental
Laws”), other than with respect to a Mortgaged Property (i)
for which environmental insurance is maintained, or (ii) that would require (x)
any expenditure less than or equal to 5% of 
the outstanding principal balance of the Mortgage Loan to achieve or
maintain compliance in all material respects with any Environmental Laws or (y)
any expenditure greater than 5% of the outstanding principal balance of such
Purchased Asset to achieve or maintain compliance in all material respects with
any Environmental Laws for which, in connection with this clause (y), adequate
sums, but in no event less than 125% of the estimated cost as set forth in the
Environmental Site Assessment, were reserved in connection with the origination
of the Purchased Asset and for which the related Mortgagor has covenanted to
perform, or (iii) as to which the related Mortgagor or one of its affiliates is
currently taking or required to take such actions, if any, with respect to such
conditions or circumstances as have been recommended by the Environmental Site
Assessment or required by the applicable Governmental Authority, or (iv) as to
which another responsible party not related to the Mortgagor with assets
reasonably estimated by Seller at the time of origination to be sufficient to
effect all necessary or required remediation identified in a notice or other
action from the applicable Governmental Authority

 

is currently taking or
required to take such actions, if any, with respect to such regulatory
authority’s order or directive, or (v) as to which the conditions or
circumstances identified in the Environmental Site Assessment were investigated
further and based upon such additional investigation, an environmental
consultant recommended no further investigation or remediation, or (vi) as to
which a party with financial resources reasonably estimated to be adequate to
cure the condition or circumstance that would give rise to such material
violation provided a guarantee or indemnity to the related Mortgagor or to the
mortgagee to cover the costs of any required investigation, testing, monitoring
or remediation, or (vii) as to which the related Mortgagor or other responsible
party obtained a “No Further Action” letter or other evidence reasonably
acceptable to a prudent commercial mortgage lender that applicable federal,
state, or local Governmental Authorities had no current intention of taking any
action, and are not requiring any action, in respect of such condition or
circumstance, or (viii) that would not require substantial cleanup, remedial
action or other extraordinary response under any Environmental Laws reasonably
estimated to cost in excess of 5% of the outstanding principal balance of such
Purchased Asset;

(ff)                                Except
for any hazardous materials being handled in accordance with applicable
Environmental Laws, (A) there exists either environmental insurance with
respect to such Mortgaged Property or (B) an amount in an escrow account
pledged as security for such Purchased Asset under the relevant Purchased Asset
Documents equal to no less than 125% of the amount estimated in such
Environmental Site Assessment as sufficient to pay the cost of such remediation
or other action in accordance with such Environmental Site Assessment and (i)
such Mortgaged Property is not being used for the treatment or disposal of
hazardous materials; (ii) no hazardous materials are being used or stored or
generated for off-site disposal or otherwise present at such Mortgaged
Property other than hazardous materials of such types and in such quantities as
are customarily used or stored or generated for off-site disposal or
otherwise present in or at properties of the relevant property type; and (iii)
such Mortgaged Property is not subject to any environmental hazard (including,
without limitation, any situation involving hazardous materials) that under the
Environmental Laws would have to be eliminated before the sale of, or that
could otherwise reasonably be expected to adversely affect in more than a de minimis manner the value or
marketability of, such Mortgaged Property.

(gg)                          The
related Mortgage or other Purchased Asset Documents contain covenants on the
part of the related Mortgagor requiring its compliance with any present or
future federal, state and local Environmental Laws and regulations in
connection with the Mortgaged Property. 
The related Mortgagor (or an affiliate thereof) has agreed to indemnify,
defend and hold Seller, and its successors and assigns (or in the case of a
Participation, the lender of record), harmless from and against any and all
losses, liabilities, damages, penalties, fines, expenses and claims of whatever
kind or nature (including attorneys’ fees and costs) imposed upon or incurred
by or asserted against any such party resulting from a breach of

 

the environmental
representations, warranties or covenants given by the related Mortgagor in
connection with such Purchased Asset.

(hh)                          For each
of the Purchased Assets that is covered by environmental insurance, each
environmental insurance policy is in an amount equal to 125% of the outstanding
principal balance of the related Purchased Asset and has a term ending no
sooner than the date that is five years after the maturity date (or, in the
case of an ARD Loan, the final maturity date) of the related Purchased
Asset.  All environmental assessments or
updates that were in the possession of Seller and that relate to a Mortgaged
Property as being insured by an environmental insurance policy have been
delivered to or disclosed to the environmental insurance carrier issuing such
policy prior to the issuance of such policy.

(ii)                                  As
of the date of origination of the related Purchased Asset, and, as of the
Purchase Date, the Mortgaged Property is covered by insurance policies
providing the coverage described below and the Purchased Asset Documents permit
the mortgagee to require the coverage described below.  All premiums with respect to the insurance
policies insuring each Mortgaged Property have been paid in a timely manner or
escrowed to the extent required by the Purchased Asset Documents, and Seller
has not received any notice of cancellation or termination.  The relevant Purchased Asset File contains
the insurance policy required for such Purchased Asset or a certificate of
insurance for such insurance policy. 
Each Mortgage requires that the related Mortgaged Property and all
improvements thereon be covered by insurance policies providing (a) coverage in
the amount of the lesser of full replacement cost of such Mortgaged Property
and the outstanding principal balance of the related Purchased Asset (subject to
customary deductibles) for fire and extended perils included within the
classification “All Risk of Physical Loss” in an amount sufficient to prevent
the Mortgagor from being deemed a co-insurer and to provide coverage on a
full replacement cost basis of such Mortgaged Property (in some cases exclusive
of foundations and footings) with an agreed amount endorsement to avoid
application of any coinsurance provision; such policies contain a standard
mortgagee clause naming mortgagee and its successor in interest as additional
insureds or loss payee, as applicable; (b) business interruption or rental loss
insurance in an amount at least equal to (i) 12 months of operations or (ii) in
some cases all rents and other amounts customarily insured under this type of insurance
of the Mortgaged Property; (c) flood insurance (if any portion of the
improvements on the Mortgaged Property is located in an area identified by the
Federal Emergency Management Agency (“FEMA”), with respect to certain Purchased Assets
and the Secretary of Housing and Urban Development with respect to other
Mortgage Loans, as having special flood hazards) in an amount not less than
amounts prescribed by FEMA; (d) workers’ compensation, if required by law; (e)
comprehensive general liability insurance in an amount equal to not less than
$1,000,000; all such insurance policies contain clauses providing they are not
terminable and may not be terminated without thirty (30) days prior written
notice to the mortgagee (except where applicable law requires a shorter period
or except for nonpayment of premiums, in which case not less than ten

 

(10) days prior written
notice to the mortgagee is required).  In
addition, each Mortgage permits the related mortgagee to make premium payments
to prevent the cancellation thereof and shall entitle such mortgagee to
reimbursement therefor.  Any insurance
proceeds in respect of a casualty, loss or taking will be applied either to the
repair or restoration of all or part of the related Mortgaged Property or the
payment of the outstanding principal balance of the related Purchased Asset
together with any accrued interest thereon. 
The related Mortgaged Property is insured by an insurance policy, issued
by an insurer meeting the requirements of such Purchased Asset (or in the case
of a Participation, of the Underlying Mortgage Loan) and having a claims-paying
or financial strength rating of at least A:X from A.M. Best Company or “A” (or
the equivalent) from Standard & Poor’s Rating Services, Fitch, Inc. or
Moody’s Investor Services, Inc.  An
architectural or engineering consultant has performed an analysis of each of
the Mortgaged Properties located in seismic zones 3 or 4 in order to evaluate
the structural and seismic condition of such property, for the sole purpose of
assessing the probable maximum loss (“PML”) for the Mortgaged Property in the event of
an earthquake.  In such instance, the PML
was based on a return period of not less than 100 years, an exposure period of
50 years and a 10% probability of exceedence. 
If the resulting report concluded that the PML would exceed 20% of the
amount of the replacement costs of the improvements, earthquake insurance on
such Mortgaged Property was obtained by an insurer rated at least A:X by A.M.
Best Company or “A” (or the equivalent) from Standard & Poor’s Rating
Services, Fitch, Inc. or Moody’s Investor Services, Inc.  The insurer issuing each of the foregoing
insurance policies is qualified to write insurance in the jurisdiction where
the related Mortgaged Property is located.

(jj)                                  All
amounts required to be deposited by each Mortgagor at origination under the
related Purchased Asset Documents have been deposited at origination and there
are no deficiencies with regard thereto.

(kk)                            Whether
or not a Purchased Asset was originated by Seller, with respect to each
Purchased Asset originated by Seller and each Purchased Asset originated by any
Person other than Seller, as of the date of origination of the related
Purchased Asset, and, with respect to each Purchased Asset originated by Seller
and any subsequent holder of the Purchased Asset, as of the Purchase Date,
there are no actions, suits, arbitrations or governmental investigations or
proceedings by or before any court or other Governmental Authority or agency
now pending against or affecting the Mortgagor under any Purchased Asset or any
of the Mortgaged Properties that, if determined against such Mortgagor or such
Mortgaged Property, would materially and adversely affect the value of such
Mortgaged Property, the security intended to be provided with respect to the
related Purchased Asset, or the ability of such Mortgagor and/or the current
use of such Mortgaged Property to generate net cash flow to pay principal,
interest and other amounts due under the related Purchased Asset; and there are
no such actions, suits or proceedings threatened against such Mortgagor.

 

(ll)                                  Each
Purchased Asset complied at origination, in all material respects, with all of
the terms, conditions and requirements of Seller’s underwriting standards
applicable to such Purchased Asset and since origination, the Purchased Asset
has been serviced in all material respects in a legal manner in conformance
with Seller’s servicing standards.

(mm)                      The
originator of the Purchased Asset or Seller has inspected or caused to be
inspected each related Mortgaged Property within the 12 months prior to the
Purchase Date.

(nn)                          The
Purchased Asset Documents require the Mortgagor to provide the holder of the
Purchased Asset with at least annual operating statements, financial statements
and except for Purchased Assets for which the related Mortgaged Property is
leased to a single tenant, rent rolls.

(oo)                          All
escrow deposits and payments required by the terms of each Purchased Asset are
in the possession, or under the control of Seller (or in the case of a
Participation, the servicer of the related Mortgage Loan), and all amounts
required to be deposited by the applicable Mortgagor under the related
Purchased Asset Documents have been deposited, and there are no deficiencies
with regard thereto (subject to any applicable notice and cure period).  All of Seller’s interest in such escrows and
deposits will be conveyed by Seller to Buyer or Servicer, on Buyer’s behalf,
hereunder.

(pp)                          Each
Mortgagor with respect to a Purchased Asset (and, for each Accommodation Loan,
each Mortgagee thereunder) is an entity whose organizational documents or
related Purchased Asset Documents provide that it is, and at least so long as
the Purchased Asset is outstanding will continue to be, a Single Purpose
Entity.  For this purpose, “Single
Purpose Entity” shall mean a Person, other than an individual, whose
organizational documents provide that it shall engage solely in the business of
owning and operating the Mortgaged Property and that does not engage in any
business unrelated to such property and the financing thereof, does not have
any assets other than those related to its interest in the Mortgaged Property
or the financing thereof or any indebtedness other than as permitted by the
related Mortgage or other Purchased Asset Documents, and the organizational
documents of which require that it have its own separate books and records and
its own accounts, in each case that are separate and apart from the books and
records and accounts of any other Person, except as permitted by the related
Mortgage or other Purchased Asset Documents.

(qq)                          The
gross proceeds of each Purchased Asset to the related Mortgagor at origination
did not exceed the non-contingent principal amount of the Purchased Asset
and either: (a) such Purchased Asset is secured by an interest in real property
having a fair market value (i) at the date the Purchased Asset was originated
at least equal to 80% of the original principal balance of the Purchased Asset
or (ii) at the Purchase Date at least equal to 80% of the original principal
balance of the Purchased Asset on such date; provided that for purposes
hereof,

 

the fair market value of
the real property interest must first be reduced by (A) the amount of any lien
on the real property interest that is senior to the Purchased Asset and (B) a
proportionate amount of any lien that is in parity with the Purchased Asset
(unless such other lien secures a Purchased Asset that is cross-collateralized
with such Purchased Asset, in which event the computation described in sub-clauses
(a)(i) and (a)(ii) of this clause (32) shall be made on a pro rata basis in
accordance with the fair market values of the Mortgaged Properties securing
such cross-collateralized Purchased Asset); or (b) substantially all the
proceeds of such Purchased Asset were used to acquire, improve or protect the
real property that served as the only security for such Purchased Asset (other
than a recourse feature or other third party credit enhancement within the
meaning of Treasury Regulations Article 1.860G-2(a)(1)(ii)).  If the Purchased Asset was “significantly
modified” prior to the Closing Date so as to result in a taxable exchange under
Article 1001 of the Code, it either (x) was modified as a result of the default
or reasonably foreseeable default of such Purchased Asset or (y) satisfies the
provisions of either sub-clause (a)(i) above (substituting the date on
the last such modification for the date the Purchased Asset was originated) or
sub-clause (a)(ii), including the proviso thereto.  The Purchased Asset is a “qualified mortgage”
within the meaning of Article 860G(a)(3) of the Code (but without regard
to the rule in Treasury Regulations Article 1.860G-2(f)(2)).  Any prepayment premium and yield maintenance
charges applicable to the Purchased Asset constitute “customary prepayment
penalties” within the meaning of Treasury Regulations Article 1.860G-1(b)(2).

(rr)                                Each
of the Purchased Assets contain a “due on sale” clause, which provides for the
acceleration of the payment of the unpaid principal balance of the Purchased
Asset (or in the case of an A Note or a Participation, of the related Mortgage
Loan) if, without the prior written consent of the holder of the Purchased
Asset (or in the case of an A Note or a Participation, of the holder of title
to the Underlying Mortgage Loan), the property subject to the Mortgage, or any
controlling interest therein, is directly or indirectly transferred or sold
(except that it may provide for transfers by devise, descent or operation of law
upon the death of a member, manager, general partner or shareholder of a
Mortgagor and that it may provide for assignments subject to the Purchased
Asset holder’s approval of transferee, transfers to affiliates, transfers to
family members for estate planning purposes, transfers among existing members,
partners or shareholders in Mortgagors or transfers of passive interests so
long as the key principals or general partner retains control).  The Purchased Asset Documents contain a “due
on encumbrance” clause, which provides for the acceleration of the payment of
the unpaid principal balance of the Purchased Asset if the property subject to
the Mortgage or any controlling interest in the Mortgagor is further pledged or
encumbered, unless the prior written consent of the holder of the Purchased
Asset is obtained (except that it may provide for assignments subject to the
Purchased Asset holder’s approval of transferee, transfers to affiliates or
transfers of passive interests so long as the key principals or general partner
retains control).  The Mortgage requires
the Mortgagor to pay all reasonable fees

 

and expenses associated
with securing the consent or approval of the holder of the Mortgage for a
waiver of a “due on sale” or “due on encumbrance” clause or a defeasance
provision.  As of the Purchase Date,
Seller holds no preferred equity interest in any Mortgagor and Seller holds no
mezzanine debt related to such Mortgaged Property.

(ss)                            Each
Purchased Asset containing provisions for defeasance of mortgage collateral
requires either (a) the prior written consent of, and compliance with the
conditions set by, the holder of the Purchased Asset to any defeasance, or
(b)(i) the replacement collateral consist of U.S. “government securities,”
within the meaning of Treasury Regulations Article 1.860 G-2(a)(8)(i), in
an amount sufficient to make all scheduled payments under the Mortgage Note
when due (up to the maturity date for the related Purchased Asset, the
Anticipated Repayment Date for ARD Loans or the date on which the Mortgagor may
prepay the related Purchased Asset without payment of any prepayment penalty);
(ii) the loan may be assumed by a Single Purpose Entity approved by the holder
of the Purchased Asset; (iii) counsel provide an opinion that the trustee has a
perfected security interest in such collateral prior to any other claim or
interest; and (iv) such other documents and certifications as the mortgagee may
reasonably require, which may include, without limitation, (A) a certification
that the purpose of the defeasance is to facilitate the disposition of the
mortgaged real property or any other customary commercial transaction and not
to be part of an arrangement to collateralize a REMIC offering with obligations
that are not real estate mortgages and (B) a certification from an independent
certified public accountant that the collateral is sufficient to make all
scheduled payments under the Mortgage Note when due.  Each Purchased Asset containing provisions
for defeasance provides that, in addition to any cost associated with
defeasance, the related Mortgagor shall pay, as of the date the mortgage
collateral is defeased, all scheduled and accrued interest and principal due as
well as an amount sufficient to defease in full the Purchased Asset.  In addition, if the related Purchased Asset
permits defeasance, then the Mortgage Loan documents provide that the related
Mortgagor shall (x) pay all reasonable fees associated with the defeasance of
the Purchased Asset and all other reasonable expenses associated with the
defeasance, or (y) provide all opinions required under the related Purchased
Asset Documents, including a REMIC opinion, and any applicable rating agency
letters confirming that no downgrade or qualification shall occur as a result
of the defeasance.

(tt)                                In
the event that a Purchased Asset is secured by more than one Mortgaged
Property, then, in connection with a release of less than all of such Mortgaged
Properties, a Mortgaged Property may not be released as collateral for the
related Purchased Asset unless, in connection with such release, an amount
equal to not less than 125% of the Allocated Loan Amount for such Mortgaged
Property is prepaid or, in the case of a defeasance, an amount equal to 125% of
the Allocated Loan Amount is defeased through the deposit of replacement
collateral (as contemplated in clause (34) hereof) sufficient to make all
scheduled

 

payments with respect to
such defeased amount, or such release is otherwise in accordance with the terms
of the Purchased Asset Documents.

(uu)                          Each
Mortgaged Property is owned in fee by the related Mortgagor, with the exception
of (i) Mortgaged Properties that are secured in whole or in a part by a Ground
Lease and (ii) out-parcels, and is used and occupied for commercial or
multifamily residential purposes in accordance with applicable law.

(vv)                          Any
material non-conformity with applicable zoning laws constitutes a legal
non-conforming use or structure that, in the event of casualty or
destruction, may be restored or repaired to the full extent of the use or
structure at the time of such casualty, or for which law and ordinance
insurance coverage has been obtained in amounts consistent with the standards
utilized by Seller.

(ww)                      Neither
Seller nor any affiliate thereof has any obligation to make any capital
contributions to the related Mortgagor under the Purchased Asset.  The Purchased Asset was not originated for
the sole purpose of financing the construction of incomplete improvements on
the related Mortgaged Property.

(xx)                              If
the related Mortgage or other Purchased Asset Documents provide for a grace
period for delinquent monthly payments, such grace period is no longer than ten
(10) days from the applicable payment date.

(yy)                          The
following statements are true with respect to the related Mortgaged Property:
(a) the Mortgaged Property is located on or adjacent to a dedicated road or has
access to an irrevocable easement permitting ingress and egress and (b) the
Mortgaged Property is served by public or private utilities, water and sewer
(or septic facilities) and otherwise appropriate for the use in which the
Mortgaged Property is currently being utilized.

(zz)                              None
of the Purchased Asset Documents contain any provision that expressly excuses
the related borrower from obtaining and maintaining insurance coverage for acts
of terrorism and, in circumstances where terrorism insurance is not expressly
required, the mortgagee is not prohibited from requesting that the related
borrower maintain such insurance, in each case, to the extent such insurance
coverage is generally available for like properties in such jurisdictions at
commercially reasonable rates. Each Mortgaged Property is insured by an “all-risk”
casualty insurance policy that does not contain an express exclusion for (or,
alternatively, is covered by a separate policy that insures against property
damage resulting from) acts of terrorism.

(aaa)                      An appraisal
of the related Mortgaged Property was conducted in connection with the
origination of such Purchased Asset (or in the case of a Participation, the
date of origination of the Underlying Mortgage Loan), and such appraisal
satisfied the guidelines in Title XI of the Financial Institutions Reform,
Recovery and Enforcement Act of 1989, in either case as in effect on the date

 

such Purchased Asset (or
in the case of a Participation, the Underlying Mortgage Loan) was originated.

Defined Terms

As used in this Exhibit:

The term “Allocated Loan Amount” shall mean, for each
Mortgaged Property, the portion of principal of the related Purchased Asset
allocated to such Mortgaged Property for certain purposes (including
determining the release prices of properties, if permitted) under such
Purchased Asset as set forth in the related loan documents.  There can be no assurance, and it is
unlikely, that the Allocated Loan Amounts represent the current values of
individual Mortgaged Properties, the price at which an individual Mortgaged
Property could be sold in the future to a willing buyer or the replacement cost
of the Mortgaged Properties.

The term “Anticipated Repayment Date” shall mean, with
respect to any Purchased Asset that is indicated on the Purchased Asset Schedule
as having a Revised Rate, the date upon which such Purchased Asset commences
accruing interest at such Revised Rate.

The term “Assignment of Leases” shall have the meaning
specified in paragraph 10 of this Exhibit VI.

The term “Assignment of Mortgage” shall mean, with respect
to any Mortgage, an assignment of the mortgage, notice of transfer or
equivalent instrument in recordable form, sufficient under the laws of the
jurisdiction wherein the related property is located to reflect the assignment
and pledge of the Mortgage, subject to the terms, covenants and provisions of
this Agreement.

The term “ARD Loan” shall mean any Purchased Asset that
provides that if the unamortized principal balance thereof is not repaid on its
Anticipated Repayment Date, such Purchased Asset will accrue Excess Interest at
the rate specified in the related Mortgage Note and the Mortgagor is required
to apply excess monthly cash flow generated by the related Mortgaged Property
to the repayment of the outstanding principal balance on such Purchased Asset.

The term “Due Date” shall mean the day of the month set
forth in the related Mortgage Note on which each monthly payment of interest
and/or principal thereon is scheduled to be first due.

The term “Environmental Site Assessment” shall mean a Phase
I environmental report meeting the requirements of the American Society for
Testing and Materials, and, if in accordance with customary industry standards
a reasonable lender would require it, a Phase II environmental report, each
prepared by a licensed third party professional experienced in environmental
matters.

The term “Excess Cash Flow” shall mean the cash flow from
the Mortgaged Property securing an ARD Loan after payments of interest (at the
Mortgage Interest Rate) and principal (based on the amortization schedule), and
(a) required payments for the tax and insurance fund

 

and ground lease escrows
fund, (b) required payments for the monthly debt service escrows, if any, (c)
payments to any other required escrow funds and (d) payment of operating
expenses pursuant to the terms of an annual budget approved by the servicer and
discretionary (lender approved) capital expenditures.

The term “Excess Interest” shall mean any accrued and
deferred interest on an ARD Loan in accordance with the following terms.  Commencing on the respective Anticipated
Repayment Date each ARD Loan (pursuant to its existing terms or a unilateral
option, as defined in Treasury Regulations under Article 1001 of the Code, in the
Purchased Assets exercisable during the term of the Purchased Asset) generally
will bear interest at a fixed rate (the “Revised Rate”) per annum equal to the Mortgage
Interest Rate plus a percentage specified in the related Mortgage Loan
Documents.  Until the principal balance
of each such Purchased Asset has been reduced to zero (pursuant to its existing
terms or a unilateral option, as defined in Treasury Regulations under Article
1001 of the Code, in the Purchased Assets exercisable during the term of the
Mortgage Loan), such Purchased Asset will only be required to pay interest at
the Mortgage Interest Rate and the interest accrued at the excess of the
related Revised Rate over the related Mortgage Interest Rate will be deferred
(such accrued and deferred interest and interest thereon, if any, is “Excess Interest”).

The term “Mortgage Interest Rate” shall mean the fixed
rate, or the formula applicable to determine the floating rate, of interest per
annum that each Purchased Asset bears as of the Purchase Date.

The term “Permitted Encumbrances”
shall mean:

I.                                         the
lien of current real property taxes, water charges, sewer rents and assessments
not yet delinquent or accruing interest or penalties;

II.                                     covenants,
conditions and restrictions, rights of way, easements and other matters of
public record acceptable to mortgage lending institutions generally and
referred to in the related mortgagee’s title insurance policy;

III.                                 other
matters to which like properties are commonly subject and which are acceptable
to mortgage lending institutions generally, and

IV.                                 the
rights of tenants, as tenants only, whether under ground leases or space leases
at the Mortgaged Property

that together do not materially and adversely affect
the related Mortgagor’s ability to timely make payments on the related
Purchased Asset, which do not materially interfere with the benefits of the
security intended to be provided by the related Mortgage or the use, for the
use currently being made, the operation as currently being operated, enjoyment,
value or marketability of such Mortgaged Property, provided, however,
that, for the avoidance of doubt, Permitted Encumbrances shall exclude all pari passu, second, junior and subordinated mortgages but
shall not exclude mortgages that secure Purchased Assets that are cross-collateralized
with other Purchased Assets.

 

The term “Revised Rate” shall mean, with respect to those
Purchased Assets on the Purchased Asset Schedule indicated as having a revised
rate, the increased interest rate after the Anticipated Repayment Date (in the
absence of a default) for each applicable Purchased Asset, as calculated and as
set forth in the related Purchased Asset.

 

REPRESENTATIONS
AND WARRANTIES

REGARDING EACH INDIVIDUAL PURCHASED ASSET

THAT IS A JUNIOR INTEREST

IN A PERFORMING COMMERCIAL

MORTGAGE LOAN SECURED BY A FIRST LIEN ON

A MULTIFAMILY OR COMMERCIAL PROPERTY

(a)                                  The
representations and warranties set forth in this Exhibit VI regarding
the senior mortgage loan from which the Purchased Asset is derived shall be
deemed incorporated herein in respect of such senior mortgage loan, provided,
however, that, in the event that such senior mortgage loan was not
originated by Seller or an Affiliate of Seller, Seller shall be deemed to be
making the representations set forth in this Exhibit VI with respect to such
senior mortgage loan to the best of Seller’s knowledge.

(b)                                 The
information set forth in the Purchased Asset Schedule is complete, true and
correct in all material respects.

(c)                                  There
exists no material default, breach, violation or event of acceleration (and no
event that, with the passage of time or the giving of notice, or both, would
constitute any of the foregoing) under the documents evidencing or securing the
Purchased Asset, in any such case to the extent the same materially and
adversely affects the value of the Purchased Asset and the related underlying
real property.

(d)                                 Except
with respect to the enforceability of any provisions requiring the payment of
default interest, late fees, additional interest, prepayment premiums or yield
maintenance charges, neither the Purchased Asset nor any of the related
Purchased Asset Documents is subject to any right of rescission, set-off,
abatement, diminution, valid counterclaim or defense, including the defense of
usury, nor will the operation of any of the terms of any such Purchased Asset
Documents, or the exercise (in compliance with procedures permitted under
applicable law) of any right thereunder, render any Purchased Asset Documents
subject to any right of rescission, set-off, abatement, diminution, valid
counterclaim or defense, including the defense of usury (subject to anti-deficiency
or one form of action laws and to bankruptcy, receivership, conservatorship,
reorganization, insolvency, moratorium or other similar laws affecting the
enforcement of creditor’s rights generally and by general principles of equity
(regardless of whether such enforcement is considered in a proceeding in equity
or at law)), and no such right of rescission, set-off, abatement,
diminution, valid counterclaim or defense has been asserted with respect
thereto.

(e)                                  The
Purchased Asset Documents have been duly and properly executed by the
originator of the Purchased Asset, and each is the legal, valid and binding
obligation of the parties thereto, enforceable in accordance with its terms,
except as such enforcement may be limited by bankruptcy, insolvency,

 

reorganization,
receivership, moratorium or other laws relating to or affecting the rights of
creditors generally and by general principles of equity (regardless of whether
such enforcement is considered in a proceeding in equity or at law).  The Purchased Asset is not usurious.

(f)                                    The
terms of the related Purchased Asset Documents have not been impaired, waived,
altered or modified in any material respect (other than by a written instrument
that is included in the related Purchased Asset File).

(g)                                 The
assignment of the Purchased Asset constitutes the legal, valid and binding
assignment of such Purchased Asset from Seller to or for the benefit of Buyer
enforceable in accordance  with its
terms, except as such enforcement may be limited by bankruptcy, insolvency,
reorganization, receivership, moratorium or other laws relating to or affecting
the rights of creditors generally and by general principles of equity
(regardless of whether such enforcement is considered in a proceeding in equity
or at law).

(h)                                 All
representations and warranties in the Purchased Asset Documents and in the
underlying documents for the performing commercial mortgage loan secured by a
first lien on a multifamily or commercial property to which such Purchased
Asset relates are true and correct in all material respects.

(i)                                     The
servicing and collection practices used by Seller for the Purchased Asset have
complied with applicable law in all material respects and are consistent with
those employed by prudent servicers of comparable Purchased Assets.

(j)                                     Seller
is not a debtor in any state or federal bankruptcy or insolvency proceeding.

(k)                                  As
of the Purchase Date, there is no payment default, giving effect to any
applicable notice and/or grace period, and there is no other material default
under any of the related Purchased Asset Documents, giving effect to any
applicable notice and/or grace period; no such material default or breach has
been waived by Seller or on its behalf or by Seller’s predecessors in interest
with respect to the Purchased Assets; and no event has occurred that, with the
passing of time or giving of notice would constitute a material default or
breach; provided, however, that the representations and warranties set forth in
this sentence do not cover any default, breach, violation or event of
acceleration that specifically pertains to or arises out of any subject matter
otherwise covered by any other representation or warranty made by Seller in
this Exhibit VI.  No Purchased Asset has
been accelerated and no foreclosure or power of sale proceeding has been
initiated in respect of the related Mortgage. 
Seller has not waived any material claims against the related Mortgagor
under any non-recourse exceptions contained in the Mortgage Note.

 

(l)                                     No
Purchased Asset has been satisfied, canceled, subordinated (except to the
senior mortgage loan from which the Purchased Asset is derived), released or
rescinded, in whole or in part, and the related Mortgagor has not been
released, in whole or in part, from its obligations under any related Purchased
Asset Document.

 

REPRESENTATIONS
AND WARRANTIES

REGARDING EACH INDIVIDUAL PURCHASED ASSET

THAT IS A CMBS OR (WHERE APPLICABLE) SYNTHETIC CMBS

(a)           The CMBS consists of pass-through
certificates representing beneficial ownership interests in one or more REMICs
consisting of one or more first lien mortgage loans secured by commercial
and/or multifamily properties.

(b)           Immediately prior to the sale,
transfer and assignment to Buyer thereof, Seller had good and marketable title
to, and was the sole owner and holder of, such CMBS or Synthetic CMBS, and
Seller is transferring such CMBS or Synthetic CMBS free and clear of any and
all liens, pledges, encumbrances, charges, security interests or any other
ownership interests of any nature encumbering such CMBS or Synthetic CMBS.

(c)           Seller has full right, power and
authority to sell and assign such CMBS or Synthetic CMBS and such CMBS or
Synthetic CMBS has not been cancelled, satisfied or rescinded in whole or part
nor has any instrument been executed that would effect a cancellation, satisfaction
or rescission thereof.

(d)           Other than consents and approvals
obtained as of the related Purchase Date or those already granted in the
related documents governing such CMBS or Synthetic CMBS, no consent or approval
by any Person is required in connection with Buyer’s acquisition of such CMBS
or Synthetic CMBS, for Buyer’s exercise of any rights or remedies in respect of
such CMBS or Synthetic CMBS or for Buyer’s sale or other disposition of such
CMBS or Synthetic CMBS.  No third party
holds any “right of first refusal”, “right of first negotiation”, “right of
first offer”, purchase option, or other similar rights of any kind, and no
other impediment exists to any such transfer or exercise of rights or remedies.

(e)           Upon consummation of the purchase
contemplated to occur in respect of such CMBS or Synthetic CMBS on the Purchase
Date therefor, Seller will have validly and effectively conveyed to Buyer all
legal and beneficial interest in and to such CMBS or Synthetic CMBS free and
clear of any and all liens, pledges, encumbrances, charges, security interests
or any other ownership interests of any nature.

(f)            The CMBS is a physical security in
registered form, or is in book-entry form and held through the facilities of
(a) The Depository Trust Corporation in New York, New York, or (b) another
clearing organization or book-entry system reasonably acceptable to Buyer.

(g)           With respect to any CMBS that is a
physical security, Seller has delivered to Buyer or its designee such physical
security, along with any and all certificates and assignments necessary to
transfer such security under the issuing documents of such CMBS.

 

(h)           With respect to any CMBS registered
with DTC or another clearing organization, Seller has delivered to Buyer or its
designee evidence of re-registration to the securities intermediary in Buyer’s
name on behalf of Buyer.

(i)            All information contained in the
related Purchased Asset File (or as otherwise provided to Buyer) in respect of
such CMBS or Synthetic CMBS is accurate and complete in all material respects.

(j)            As of the date of its issuance, such
CMBS complied in all material respects with, or was exempt from, all
requirements of federal, state or local law relating to the issuance thereof
including, without limitation, any registration requirements of the Securities
Act of 1933, as amended.

(k)           Except as included in the Purchased
Asset File, there is no document that by its terms modifies or affects the
rights and obligations of the holder of such CMBS or Synthetic CMBS, the terms
of the related pooling and servicing agreement or any other agreement relating
to the CMBS or Synthetic CMBS, and, since issuance, there has been no material
change or waiver to any term or provision of any such document, instrument or
agreement.

(l)            There is no (i) monetary default,
breach or violation of any pooling and servicing agreement or other document
governing or pertaining to such CMBS or Synthetic CMBS, (ii) material
non-monetary default, breach or violation of any such agreement or other document
or other document governing or pertaining to such CMBS or Synthetic CMBS, or
(iii) event that, with the passage of time or with notice and the expiration of
any grace or cure period, would constitute a default, breach, violation or
event of acceleration under such documents and agreements.

(m)          No consent, approval, authorization or
order of, or registration or filing with, or notice to, any court or
governmental agency or body having jurisdiction or regulatory authority over
Seller is required for any transfer or assignment of such CMBS or Synthetic
CMBS.

(n)           Except as included in the Purchased
Asset File, (i) no interest shortfalls have occurred and no realized losses
have been applied to any CMBS or otherwise incurred with respect to any
mortgage loan related to such CMBS nor any class of CMBS issued under the same
governing documents as any CMBS, and (ii) Seller has no knowledge of any
circumstances that could have a Material Adverse Effect on the CMBS or
Synthetic CMBS.

(o)           With respect to CMBS backed by a
single mortgaged asset, there are no circumstances or conditions with respect
to the CMBS, the Underlying Mortgaged Property or the related Mortgagor’s
credit standing that can reasonably be expected to have a Material Adverse
Effect on the CMBS.

(p)           Seller has not received written
notice of any outstanding liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses

 

or disbursements of any
kind for which the holder of such CMBS or Synthetic CMBS is or may become obligated.

(q)           There is no material inaccuracy in
any servicer report or trustee report delivered to it (and, in turn, delivered
pursuant to the terms of this Agreement) in connection with such CMBS.

(r)            No servicer of the CMBS has made any
advances, directly or indirectly, with respect to the CMBS or to any mortgage
loan relating to such CMBS.

 

REPRESENTATIONS
AND WARRANTIES

REGARDING EACH INDIVIDUAL PURCHASED ASSET

THAT IS A CRE CDO

(a)           Immediately prior to the sale,
transfer and assignment to Buyer thereof, Seller had good and marketable title
to, and was the sole owner and holder of, such CRE CDO, and Seller is
transferring such CRE CDO free and clear of any and all liens, pledges,
encumbrances, charges, security interests or any other ownership interests of
any nature encumbering such CRE CDO.

(b)           Seller has full right, power and
authority to sell and assign such CRE CDO and such CRE CDO has not been
cancelled, satisfied or rescinded in whole or part nor has any instrument been
executed that would effect a cancellation, satisfaction or rescission thereof.

(c)           Other than consents and approvals
obtained as of the related Purchase Date or those already granted in the
related documents governing such CRE CDO, no consent or approval by any Person
is required in connection with Buyer’s acquisition of such CRE CDO, for Buyer’s
exercise of any rights or remedies in respect of such CRE CDO or for Buyer’s
sale or other disposition of such CRE CDO. 
No third party holds any “right of first refusal”, “right of first negotiation”,
“right of first offer”, purchase option, or other similar rights of any kind,
and no other impediment exists to any such transfer or exercise of rights or
remedies.

(d)           Upon consummation of the purchase
contemplated to occur in respect of such CRE CDO on the Purchase Date therefor,
Seller will have validly and effectively conveyed to Buyer all legal and
beneficial interest in and to such CRE CDO free and clear of any and all liens,
pledges, encumbrances, charges, security interests or any other ownership
interests of any nature, subject to the rights and obligations of Seller
pursuant to the Agreement.

(e)           The CRE CDO is a physical security in
registered form, or is in book-entry form and held through the facilities of
(a) The Depository Trust Corporation in New York, New York, or (b) another
clearing organization or book-entry system reasonably acceptable to Buyer.

(f)            With respect to any CRE CDO that is
a physical security, Seller has delivered to Buyer or its designee such
physical security, along with any and all certificates and assignments
necessary to transfer such security under the issuing documents of such CRE
CDO.

(g)           With respect to any CRE CDO
registered with DTC or another clearing organization, Seller has delivered to
Buyer or its designee evidence of re-registration to the securities
intermediary in Buyer’s name on behalf of Buyer.

 

(h)           All information contained in the
related Purchased Asset File (or as otherwise provided to Buyer) in respect of
such CRE CDO is accurate and complete in all material respects.

(i)            To the knowledge of Seller, as of
the date of its issuance, such CRE CDO complied in all material respects with,
or was exempt from, all requirements of federal, state or local law relating to
the issuance thereof including, without limitation, any registration
requirements of the Securities Act of 1933, as amended.

(j)            Except as included in the Purchased
Asset File, there is no document that by its terms modifies or affects the
rights and obligations of the holder of such CRE CDO, the terms of the related
pooling and servicing agreement or any other agreement relating to the CRE CDO,
and, since issuance, there has been no material change or waiver to any term or
provision of any such document, instrument or agreement.

(k)           There is no (i) monetary default,
breach or violation exists with respect to any pooling and servicing agreement,
indenture, or other document governing or pertaining to such CRE CDO, (ii)
material non-monetary default, breach or violation exists with respect to any
such agreement, indenture, or other document governing or pertaining to such
CRE CDO, or (iii) event that, with the passage of time or with notice and the
expiration of any grace or cure period, would constitute a default, breach,
violation or event of acceleration under such documents and agreements.

(l)            No consent, approval, authorization
or order of, or registration or filing with, or notice to, any court or
governmental agency or body having jurisdiction or regulatory authority over
Seller is required for any transfer or assignment of such CRE CDO.

(m)          Except as included in the Purchased
Asset File, (i) no interest shortfalls have occurred and no realized losses
have been applied to any CRE CDO or otherwise incurred with respect to any
mortgage loan related to such CRE CDO nor any class of CRE CDO issued under the
same governing documents as any CRE CDO, and (ii) Seller has no knowledge of
any circumstances that could have a Material Adverse Effect on the CRE CDO.

(n)           Seller has not received written
notice of any outstanding liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind for
which the holder of such CRE CDO is or may become obligated.

(o)           There is no material inaccuracy in
any servicer report or trustee report delivered to it (and, in turn, delivered
pursuant to the terms of this Agreement) in connection with such CRE CDO.

 

(p)           No fraudulent acts were committed by
Seller in connection with its acquisition of such CRE CDO.

(q)           No servicer of the CRE CDO has made
any advances, directly or indirectly, with respect to the CRE CDO or to any
mortgage loan relating to such CRE CDO.

 

EXHIBIT VII

ASSET INFORMATION

Loan
ID #:

Borrower
Name:

Borrower
Address:

Borrower
City:

Borrower
State:

Borrower
Zip Code:

Recourse?

Guaranteed?

Related
Borrower Name(s):

Original
Principal Balance:

Note
Date:

Loan
Date:

Loan
Type (e.g. fixed/arm):

Current
Principal Balance:

Current
Interest Rate (per annum):

Paid
to date:

Annual
P&I:

Next
Payment due date:

Index
(complete whether fixed or arm):

Gross
Spread/Margin (complete whether fixed or arm):

Life
Cap:

Life
Floor:

Periodic
Cap:

Periodic
Floor:

Rounding
Factor:

Lookback
(in days):

Interest
Calculation Method (e.g., Actual/360):

Interest
rate adjustment frequency:

P&I
payment frequency:

First
P&I payment due:

First
interest rate adjustment date:

First
payment adjustment date:

Next
interest rate adjustment date:

Next
payment adjustment date:

Conversion
Date:

Converted
Interest Rate Index:

Converted
Interest Rate Spread:

Maturity
date:

Loan
term:

Amortization
term:

Hyper-Amortization
Flag:

Hyper-Amortization
Term:

Hyper-Amortization
Rate Increase:

Balloon Amount:

 

Balloon
LTV:

Prepayment
Penalty Flag:

Prepayment
Penalty Text:

Lockout
Period:

Lien
Position:

Fee/Leasehold:

Ground
Lease Expiration Date:

CTL
(Yes/No):

CTL
Rating (Moody’s):

CTL
Rating (Duff):

CTL
Rating (S&P):

CTL
Rating (Fitch):

Lease
Guarantor:

CTL
Lease Type (NNN, NN, Bondable):

Property
Name:

Property
Address:

Property
City:

Property
Zip Code:

Property
Type (General):

Property
Type (Specific):

Cross-collateralized
(Yes/No)*

Property
Size:

Year
built:

Year
renovated:

Actual
Average Occupancy:

Occupancy
Rent Roll Date:

Underwritten
Average Occupancy:

Largest
Tenant:

Largest
Tenant SF:

Largest
Tenant Lease Expiration:

2nd
Largest Tenant:

2nd
Largest Tenant SF:

2nd
Largest Tenant Lease Expiration:

3rd
Largest Tenant:

3rd
Largest Tenant SF:

3rd
Largest Tenant Lease Expiration:

Underwritten
Average Rental Rate/ADR:

Underwritten
Vacancy/Credit Loss:

Underwritten
Other Income:

Underwritten
Total Revenues:

Underwritten Replacement
Reserves:

*  If yes, give
property information on each property covered and in aggregate as appropriate.
Loan ID’s should be denoted with a suffix letter to signify loans/collateral.

 

 

Underwritten
Management Fees:

Underwritten
Franchise Fees:

Underwritten
Total Expenses:

Underwritten
Leasing Commissions:

Underwritten
Tenant Improvement Costs:

Underwritten
NOI:

Underwritten
NCF:

Underwritten
Debt Service Constant:

Underwritten
DSCR at NOI:

Underwritten
DSCR at NCF:

Underwritten
NOI Period End Date:

Hotel
Franchise:

Hotel
Franchise Expiration Date:

Appraiser
Name:

Appraised
Value:

Appraisal
Date:

Appraisal
Cap Rate:

Appraisal
Discount Rate:

Underwritten
LTV:

Environmental
Report Preparer:

Environmental
Report Date:

Environmental
Report Issues:

Architectural
and Engineering Report Preparer:

Architectural
and Engineering Report Date:

Deferred
Maintenance Amount:

Ongoing
Replacement Reserve Requirement per A&E Report:

Immediate
Repairs Escrow % (e.g. 125%):

Replacement
Reserve Annual Deposit:

Replacement
Reserve Balance:

Tenant
Improvement/Leasing Commission Annual Deposits:

Tenant
Improvement/Leasing Commission Balance:

Taxes
paid through date:

Monthly
Tax Escrow:

Tax
Escrow Balance:

Insurance
paid through date:

Monthly
Insurance Escrow:

Insurance
Escrow Balance:

Reserve/Escrow
Balance as of Date:

Probable
Maximum Loss %:

Covered
by Earthquake Insurance (Yes/No):

Number
of times 30 days late in last 12 months:

Number
of times 60 days late in last 12 months:

Number
of times 90 days late in last 12 months:

Servicing
Fee:

Notes:

 

 

EXHIBIT
VIII

 

ADVANCE PROCEDURES

 

(a)           Submission of Preliminary
Underwriting Materials for Accommodation Loans.

 

(A)          Seller shall deliver to Buyer within
forty-five (45) days of the Purchase Date a preliminary underwriting package
that includes a summary memorandum outlining the proposed transaction,
including potential transaction benefits and all material Underwriting Issues
then known to Seller and any other characteristics of the proposed transaction
that a reasonable buyer would consider material.  Based on the information provided, Buyer
shall notify Seller of its preliminary assessment as to whether it would be willing
to purchase such asset assuming Seller subsequently complies with all terms and
conditions in the Transaction Documents; provided, however that
such notice shall not be binding on Buyer and any determination to purchase the
proposed asset shall be made in the Buyer’s sole discretion.

(b)           Submission of Incomplete
Preliminary Due Diligence Package.

(A)          If Seller desires Buyer to evaluate an
incomplete Preliminary Due Diligence Package for any proposed Eligible Asset
(which Seller and  Buyer acknowledge may
fail to include an appraisal, an environmental report, an engineering report
and/or the debt, security and other documents comprising the such Eligible
Loan), Seller may submit such incomplete Preliminary Due Diligence Package to
Buyer together with Seller’s written estimate of the Market Value of the
proposed Eligible Asset.  Upon Buyer’s
receipt of such incomplete Preliminary Due Diligence Package and written
estimate, Buyer shall endeavor to evaluate same and within ten (10) Business
Days of such receipt, shall use commercially reasonable efforts to notify
Seller by facsimile or e-mail (which notification shall not be binding
upon Buyer and may not be relied upon by Seller or any other Person) of the
results of Buyer’s evaluation of the incomplete Preliminary Due Diligence
Package, including a notification that Buyer was unable to evaluate the
incomplete Preliminary Due Diligence Package, if applicable.

(c)           Submission of Preliminary Due
Diligence Package.

(A)          Seller may, from time to time, submit
to Buyer a Preliminary Due Diligence Package for Buyer’s review and approval in
order to enter into a Transaction with respect to any Eligible Asset that
Seller proposes to be included as a Purchased Asset under the Agreement,
including any Requested Exception Report; provided that Buyer shall not be
under any obligation to enter into any Transaction.

 

(B)           Upon Buyer’s receipt of a complete
Preliminary Due Diligence Package, Buyer, within ten (10) Business Days, shall
have the right to request, in Buyer’s sole and absolute discretion, additional
diligence materials and deliveries that Buyer shall specify on a Supplemental
Due Diligence List.  Upon Buyer’s receipt
of all of the Diligence Materials or Buyer’s waiver thereof, Buyer shall
promptly, but in any event within ten (10) Business Days and only following
receipt of internal credit approval, shall either (i) notify Seller of the
Purchase Price and the Market Value for the Eligible Asset or (ii) deny,
in Buyer’s sole and absolute discretion, Seller’s request for a
Transaction.  Buyer’s failure to respond
to Seller within ten (10) Business Days following receipt of all Diligence
Materials or Buyer’s written waiver thereof shall be deemed to be a denial of
Seller’s request for an Advance, unless Buyer and Seller have agreed otherwise
in writing.  Nothing in this Exhibit
VIII or elsewhere in this Agreement shall, or be deemed to, prohibit Buyer
from determining in its sole discretion the adequacy, correctness and
appropriateness of, or from disapproving, any and all financial and other
underwriting data required to be supplied by Seller under this Agreement.

(d)           Final Approval of an Eligible
Asset.  Upon Buyer’s notification to
Seller of the Purchase Price and the Market Value for any Eligible Loan, Seller
shall, if Seller desires to enter into a Transaction with respect to such New
Asset, satisfy the conditions set forth below (in addition to satisfying the
conditions precedent with respect to each Transaction, as set forth in Article
3(b) of this Agreement) as a condition precedent to Buyer’s approval of
such Eligible Asset as a Purchased Item, all in a manner, and pursuant to
documentation, satisfactory in all respects to Buyer (and its counsel) in its
sole, but good faith, discretion:

(A)          Delivery of Purchased Asset
Documents.  Seller shall deliver to
Buyer: (i) with respect to a New Asset that is a Pre-Existing Asset, each
of the Purchased Asset Documents, except Purchased Asset Documents that Seller
expressly and specifically disclosed in Seller’s Preliminary Due Diligence
Package were not in Seller’s possession; and (ii) with respect to New Asset
that is an Originated Asset, each of the Purchased Asset Documents.

(B)           Environmental and Engineering.  Buyer shall have received a “Phase 1” (and,
if requested by Buyer, “Phase 2”)
environmental report, an asbestos survey, if applicable, and an engineering
report, each in form satisfactory to Buyer in its sole discretion, by an
engineer or environmental consultant approved by Buyer in its sole discretion.

(C)           Appraisal.  Buyer shall have received either an appraisal
approved by Buyer (or a Draft Appraisal), each by an MAI appraiser.  If Buyer receives only a Draft Appraisal
prior to entering into a Transaction, Seller shall deliver an appraisal
approved by Buyer by an MAI appraiser on or before thirty (30) days after the
Purchase Date.

 

(D)          Insurance.  Buyer shall have received certificates or
other evidence of insurance demonstrating insurance coverage in respect of the
underlying real estate directly or indirectly securing or supporting such
Purchased Asset of types, in amounts, with insurers and otherwise in compliance
with the terms, provisions and conditions set forth in the Purchased Asset
Documents.  Such certificates or other
evidence shall indicate that Seller (or, as to Subordinate Eligible Assets, the
lead lender on the whole loan in which Seller is a participant or holder of a
note or has an equity interest in the Mortgagor, as applicable), will be named
as an additional insured as its interest may appear and shall contain a loss
payee endorsement in favor of such additional insured with respect to the policies
required to be maintained under the Purchased Asset Documents.

(E)           Survey.  Buyer shall have received all surveys of the
underlying real estate directly or indirectly securing or supporting such
Purchased Asset that are in Seller’s possession.

(F)           Lien Search Reports.  Buyer or Buyer’s counsel shall have received,
as requested by Buyer, satisfactory reports of UCC, tax lien, judgment and
litigation searches and title updates conducted by search firms and/or title
companies acceptable to Buyer with respect to the Eligible Loan, underlying
real estate directly or indirectly securing or supporting such Eligible Loan,
Seller and Mortgagor, such searches to be conducted in each location Buyer
shall designate.

(G)           Title Insurance Policy.

(1)                                  With
respect to a Senior Mortgage Loan, Seller shall have delivered to Buyer (1) an
unconditional commitment to issue a Title Policy in favor of Buyer and Buyer’s
successors and/or assigns with respect to Buyer’s interest in the related real
property and insuring the assignment of the Eligible Asset to Buyer, with an
amount of insurance that shall be not less than the maximum principal amount of
the Eligible Asset (taking into account the proposed Advance) or (2) an
endorsement or confirmatory letter from the title insurance company that issued
the existing title insurance policy, in favor of Buyer and Buyer’s successors
and/or assigns, that amends the existing title insurance policy by stating that
the amount of the insurance is not less than the maximum principal amount of
the Eligible Asset (taking into account the proposed Advance).

(2)                                  Seller
shall have delivered to Buyer a copy of an unconditional commitment to issue a
Title Policy or an existing title insurance policy with respect to any
Subordinate Eligible Asset that is evidenced by a Mortgage Note, in an amount
not less than the amount of such Mortgage Note and all superior notes or (2)
with respect to any Subordinate Eligible Asset that is not evidenced by a
Mortgage Note, in an amount not less than the amount of the related
indebtedness and all superior notes or participations.

 

(3)                                  With
respect to any CMBS or Synthetic CMBS, or CRE CDO, Seller shall have delivered
to Buyer such evidence as Buyer on a case-by-case basis, in its
good faith discretion, shall require of the ownership of the real property
underlying such item of Collateral including, without limitation, a copy of a
Title Policy dated a date, and issued by a title insurer, in each case
acceptable to Buyer in its reasonable discretion, showing that title is vested
in the related Mortgagor or in an entity in whom such Mortgagor holds a
beneficial interest.

(H)          Assignment Documents.  Seller shall have executed and delivered to
Buyer, in form and substance reasonably satisfactory to Buyer and its counsel,
all applicable assignment documents assigning to Buyer the proposed Eligible
Asset (and in any Hedging Transactions held by Seller with respect thereto)
that shall be subject to no liens except as expressly permitted by Buyer.  Each of the assignment documents shall
contain such representations and warranties in writing concerning the proposed
Eligible Asset and such other terms as shall be satisfactory to Buyer in its
sole discretion.

(I)            Opinions of Counsel.  Buyer shall have received an opinion to
Seller and its successors and assigns from counsel to the underlying obligor on
the underlying loan transaction, as applicable, as to enforceability of the
loan documents governing such transaction and such other matters as Buyer shall
require (including, without limitation, opinions as to due formation,
authority, choice of law and perfection of security interests).

(J)            Additional Real Estate Matters.  To the extent obtained by Seller from the
Mortgagor or the underlying obligor relating to any Eligible Asset at the
origination of the Eligible Asset, Seller shall have delivered to Buyer such
other real estate related certificates and documentation as may have been
requested by Buyer, such as (i) certificates of occupancy and letters
certifying that the property is in compliance with all applicable zoning laws,
each issued by the appropriate Governmental Authority and (ii) abstracts of all
leases in effect at the real property relating to such Eligible Asset.

(K)          Subordinate Eligible Assets.  In the case of Subordinate Eligible Assets,
in addition to the delivery of the items in clauses (g), (h) and (i), Buyer
shall have received all documentation specified in clauses (a) through (f) and
(j) as if the underlying mortgage loan were the direct New Asset but solely to
the extent Seller possesses such documentation or has access to such
documentation because it was provided to the related lead lender and made
available to Seller and, in addition, all documents evidencing the Subordinate
Eligible Asset, including, but not limited to, an original Mortgage Note,
participation certificate, if applicable, and the related participation and/or
intercreditor agreement.

 

(L)           Other Documents.  Buyer shall have received such other
documents as Buyer or its counsel shall reasonably deem necessary.

Seller shall deliver the items set forth in clauses
(a) through (l) above to Buyer and its counsel from time to time promptly upon
receipt of same by Seller or its counsel.

(e)           Eligible Asset Approval or
Disapproval.  Within five (5)
Business Days following the date upon which Seller has tendered performance of
the conditions enumerated in clauses (a) through (l) of subsection III above,
or has delivered such items or documents fully executed, if applicable, in
final form, and provided that Buyer and/or Buyer’s counsel, in the sole
discretion of Buyer, has had sufficient time to perform a diligence review of
such materials,  Buyer shall either (i)
if the documents with respect to the proposed Eligible Asset are not satisfactory
in form and substance to Buyer, notify Seller in writing that Buyer has not
approved the proposed Eligible Asset as a Purchased Asset or (ii) notify Seller
in writing that Buyer has approved the proposed Eligible Asset as a Purchased
Asset.  Buyer’s failure to respond to Seller
within such five (5) Business Day period shall be deemed to be a denial of
Seller’s request that Buyer approve the proposed Eligible Loan, unless Buyer
and Seller have agreed otherwise in writing.

 

EXHIBIT IX

FORM OF RE-DIRECTION
LETTER

[Letterhead of [    ]]

              
     , 20    

[Borrower Name]

[Address]

Re:          [                                ]
(the “Asset”)

To Whom It May Concern:

[SELLER] (the “Seller”) has transferred its interest in the
Asset to JPMorgan Chase Bank, N.A. (the “Buyer”) in accordance with that certain Master
Repurchase Agreement between Seller and Buyer dated as of October 26,
2006.  All notices, demands and requests
to be given to the lender under the documents evidencing, securing and/or
governing the Asset shall be sent to the following addresses (until such
addresses for notice are changed in accordance with the Asset documents):

JPMORGAN CHASE BANK, N.A.

270 Park Avenue, 7th
Floor

New York, New York 10017-2014

Attention:                                         Mr.
Jeffrey Waller

Telephone:                                    (212)
834-9987

Telecopy:                                           (212) 834-6565

with a copy to:

JPMORGAN CHASE BANK, N.A.

270 Park Avenue, 10th
Floor

New York, New York 10017-2014

Attention:  Mr. Kunal K. Singh

Telephone:                                    (212)
834-5467

Telecopy:                                           (212) 834-6593

with a copy to:

[SELLER]

c/o Dividend Capital Total Realty Operating Partnership LP

518 Seventeenth Street, 17th Floor

Denver, Colorado 80202

Attention: [    ]

Telephone: [    ]

Telecopy: [    ]

 

All payments to be made in connection with the Asset
shall be made by wire transfer in accordance with the following instructions:

[    ]

ABA 071000505

BNF:  [                                     ]

Account #:  724178.1

Account name:  JPMorgan Chase Bank, N.A., as secured party,
for the Cash Management Account

Attn:

Please feel free to call [    ] at
[    ] should you have any questions or concerns.  Thank you.

	
  

  	
  [SELLER]

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT X

FORM OF BAILEE LETTER

                                 
    , 20     

                          

                          

Re:          Bailee
Agreement (the “Bailee Agreement”) in connection with the pledge by
[SELLER] (the “Seller”) to JPMorgan Chase Bank, N.A. (the “Buyer”)

Ladies and Gentlemen:

In consideration of the
mutual promises set forth herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Seller, Buyer and
[    ] (the “Bailee”) hereby agree as follows:

(a)           Seller shall deliver to the Bailee in
connection with any Purchased Assets delivered to the Bailee hereunder an
Identification Certificate in the form of Attachment 1 attached hereto to which
shall be attached a Purchased Asset Schedule identifying which Purchased Assets
are being delivered to the Bailee hereunder. 
Such Purchased Asset Schedule shall contain the following fields of
information:  (a) the loan identifying
number; (b) the Purchased Asset obligor’s name; (c) the street address, city,
state and zip code for the applicable real property; (d) the original balance;
and (e) the current principal balance if different from the original balance.

(b)           On or prior to the date indicated on
the Custodial Identification Certificate delivered by Seller (the “Funding Date”), Seller
shall have delivered to the Bailee, as bailee for hire, the original documents
set forth on Schedule A attached hereto (collectively, the “Purchased Asset File”)
for each of the Purchased Assets (each a “Purchased Asset” and collectively, the “Purchased Assets”)
listed in Exhibit A to Attachment 1 attached hereto (the “Purchased Asset Schedule”).

(c)           The Bailee shall issue and deliver to
Buyer and LASALLE BANK NATIONAL ASSOCIATION (the “Custodian”) on or
prior to the Funding Date by facsimile (a) in the name of Buyer, an initial
trust receipt and certification in the form of Attachment 2 attached hereto (the
“Bailee’s Trust Receipt and
Certification”) which Bailee’s Trust Receipt and
Certification shall state that the Bailee has received the documents comprising
the Purchased Asset File as set forth in the Custodial Identification
Certificate (as defined in that certain Custodial Agreement dated as of October
26, 2006, among Seller, Buyer and Custodian (as defined in Article 5
below), in addition to such other documents required to be delivered to Buyer
and/or Custodian pursuant to the Master Repurchase Agreement dated as of
October 26, 2006, between Seller and Buyer (the “Repurchase Agreement”).

 

(d)           On the applicable Funding Date, in
the event that Buyer fails to purchase from Seller the Purchased Assets
identified in the related Custodial Identification Certificate, Buyer shall
deliver by facsimile to the Bailee at [   
] to the attention of [    ], an
authorization (the “Facsimile
Authorization”) to release the Purchased Asset Files with
respect to the Purchased Assets identified therein to Seller.  Upon receipt of such Facsimile Authorization,
the Bailee shall release the Purchased Asset Files to Seller in accordance with
Seller’s instructions.

(e)           Following the Funding Date, the
Bailee shall forward the Purchased Asset Files to the Custodian at Document Custody
Services, 7420 S. Kyrene Road, Suite 111, Tempe, AZ 85283 by insured overnight
courier for receipt by the Custodian no later than 1:00 p.m. on the third
Business Day following the applicable Funding Date (the “Delivery Date”).

(f)            From and after the applicable
Funding Date until the time of receipt of the Facsimile Authorization or the
applicable Delivery Date, as applicable, the Bailee (a) shall maintain
continuous custody and control of the related Purchased Asset Files as bailee
for Buyer and (b) is holding the related Purchased Assets as sole and exclusive
bailee for Buyer unless and until otherwise instructed in writing by Buyer.

(g)           Seller agrees to indemnify and hold
the Bailee and its partners, directors, officers, agents and employees harmless
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever, including reasonable attorney’s fees, that may be imposed
on, incurred by, or asserted against it or them in any way relating to or
arising out of this Bailee Agreement or any action taken or not taken by it or
them hereunder unless such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements (other
than special, indirect, punitive or consequential damages, which shall in no
event be paid by the Bailee) were imposed on, incurred by or asserted against
the Bailee because of the breach by the Bailee of its obligations hereunder,
which breach was caused by negligence, lack of good faith or willful misconduct
on the part of the Bailee or any of its partners, directors, officers, agents
or employees.  The foregoing
indemnification shall survive any resignation or removal of the Bailee or the
termination or assignment of this Bailee Agreement.

(h)           In the event that the Bailee fails to
produce a Mortgage Note, assignment of collateral or any other document related
to a Purchased Asset that was in its possession within ten (10) business days after
required or requested by Seller or Buyer (a “Delivery Failure”), the Bailee shall indemnify
Seller or Buyer in accordance with the succeeding paragraph of this Article
8.

(i)            Seller agrees to indemnify and hold
Buyer and its respective affiliates and designees harmless against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of

 

any kind or nature
whatsoever, including reasonable attorney’s fees, that may be imposed on,
incurred by, or asserted against it or them in any way relating to or arising
out of a Custodial Delivery Failure or the Bailee’s negligence, lack of good
faith or willful misconduct.  The
foregoing indemnification shall survive any termination or assignment of this
Bailee Agreement.

(j)            Seller hereby represents, warrants
and covenants that the Bailee is not an affiliate of or otherwise controlled by
Seller.  Notwithstanding the foregoing,
the parties hereby acknowledge that the Bailee hereunder may act as Counsel to
Seller in connection with a proposed transaction and [    ], if acting as Bailee, has represented
Seller in connection with negotiation, execution and delivery of the Repurchase
Agreement.

(k)           In connection with a pledge of the
Purchased Assets as collateral for an obligation of Buyer, Buyer may pledge its
interest in the corresponding Purchased Asset Files held by the Bailee for the
benefit of Buyer from time to time by delivering written notice to the Bailee
that Buyer has pledged its interest in the identified Purchased Assets and
Purchased Asset Files, together with the identity of the party to whom the
Purchased Assets have been pledged (such party, the “Pledgee”). 
Upon receipt of such notice from Buyer, the Bailee shall mark its
records to reflect the pledge of the Purchased Assets by Buyer to the
Pledgee.  The Bailee’s records shall
reflect the pledge of the Purchased Assets by Buyer to the Pledgee until such
time as the Bailee receives written instructions from Buyer that the Purchased
Assets are no longer pledged by Buyer to the Pledgee, at which time the Bailee
shall change its records to reflect the release of the pledge of the Purchased
Assets and that the Bailee is holding the Purchased Assets as custodian for,
and for the benefit of, Buyer.

(l)            The agreement set forth in this
Bailee Agreement may not be modified, amended or altered, except by written
instrument, executed by all of the parties hereto.

(m)          This Bailee Agreement may not be
assigned by Seller or the Bailee without the prior written consent of Buyer.

(n)           For the purpose of facilitating the
execution of this Bailee Agreement as herein provided and for other purposes,
this Bailee Agreement may be executed simultaneously in any number of
counterparts, each of which counterparts shall be deemed to be an original, and
such counterparts shall constitute and be one and the same instrument.

(o)           This Bailee Agreement shall be
construed in accordance with the laws of the State of New York, and the
obligations, rights and remedies of the parties hereunder shall be determined
in accordance with such laws.

(p)           Capitalized terms used herein and
defined herein shall have the meanings ascribed to them in the Repurchase
Agreement.

 

[signatures begin on next
page]

 

 

	
  

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  [SELLER]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

ACCEPTED AND AGREED:

[BAILEE]

	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  

 

 

ACCEPTED AND
AGREED:

JPMORGAN CHASE BANK, N.A.,

Buyer

	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

Schedule A

[List of Purchased Asset
Documents]

 

Attachment 1

IDENTIFICATION
CERTIFICATE

On this         day
of                 ,
200_, [SELLER] (the “Seller”),
under that certain Bailee Agreement of even date herewith (the “Bailee Agreement”),
among Seller, [    ] (the “Bailee”), and JPMORGAN
CHASE BANK, N.A., as Buyer, does hereby instruct the Bailee to hold, in its
capacity as Bailee, the Purchased Asset Files with respect to the Purchased
Assets listed on Exhibit A hereto, which Purchased Assets shall be
subject to the terms of the Bailee Agreement as of the date hereof.

Capitalized terms used herein and not otherwise
defined shall have the meanings set forth in the Bailee Agreement.

IN WITNESS WHEREOF, Seller has caused this
Identification Certificate to be executed and delivered by its duly authorized
officer as of the day and year first above written.

	
  

  	
  [SELLER]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Exhibit A to Attachment 1

PURCHASED ASSET SCHEDULE

 

Attachment 2

FORM OF BAILEE’S TRUST
RECEIPT AND CERTIFICATION

                           ,
200    

JPMORGAN
CHASE BANK, N.A.

270
Park Avenue, 7th Floor

New
York, New York 10017-2014

Attention:                                         Mr.
Jeffrey Waller

Telephone:                                    (212)
834-9987

Telecopy:                                           (212)
834-6565

Re:                               Bailee
Agreement, dated as of                                ,
200_ (the “Bailee Agreement”) among [SELLER] (the “Seller”), JPMorgan
Chase Bank, N.A. (the “Buyer”) and [   ] (the “Bailee”)

Ladies and Gentlemen:

In accordance with the provisions of Paragraph 3 of
the above-referenced Bailee Agreement, the undersigned, as the Bailee,
hereby certifies that as to each Purchased Asset described in the Purchased
Asset Schedule (Exhibit A to Attachment 1), a copy of which is attached
hereto, it has reviewed the Purchased Asset File and has determined that (i)
all documents listed in Schedule A attached to the Bailee Agreement
are in its possession and (ii) such documents have been reviewed by it and
appear regular on their face and relate to such Purchased Asset, and (iii)
based on its examination, the foregoing documents on their face satisfy the
requirements set forth in Paragraph 2 of the Bailee Agreement.

The Bailee hereby confirms that it is holding each
such Purchased Asset File as agent and bailee for the exclusive use and benefit
of Buyer pursuant to the terms of the Bailee Agreement.

All initially capitalized terms used herein shall have
the meanings ascribed to them in the above-referenced Bailee Agreement.

	
  

  	
  [       ], BAILEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT XI

FORM OF GUARANTEE AGREEMENT

GUARANTEE AGREEMENT

GUARANTEE AGREEMENT, dated as of October 26, 2006 (as
amended, restated, supplemented, or otherwise modified from time to time, this “Guarantee”),
made by DIVIDEND CAPITAL TOTAL REALTY TRUST, INC, a Maryland corporation having
its principal place of business at 518 Seventeenth Street, 17th Floor, Denver, Colorado 80202 (“Guarantor”), in favor of the Buyer referred to
below.

RECITALS

Pursuant to that certain Master Repurchase Agreement,
dated as of October 26, 2006 (as amended, supplemented or otherwise modified
from time to time, the “Repurchase Agreement”), among JPMorgan Chase
Bank, N.A. (as “Buyer”), DCTRT Securities Holdco LLC and TRT Lending LLC
(each a “Seller” and collectively, the “Sellers”), Seller has
agreed to sell, from time to time, to Buyer certain Senior Mortgage Loans,
Accommodation Loans, Junior Interests, Mezzanine Loans, CMBS, Synthetic CMBS,
and CRE CDO, each as defined in the Repurchase Agreement (collectively, the “Purchased
Assets”), upon the terms and subject to the conditions as set forth therein.  Pursuant to the terms of that certain
Custodial Agreement dated as of October 26, 2006 by and between LASALLE BANK
NATIONAL ASSOCIATION (the “Custodian”), Buyer, and Seller (the “Custodial
Agreement”), Custodian is required to take possession of the Purchased
Assets, along with certain other documents specified in the Custodial
Agreement, as the Custodian of Buyer and any future purchaser, on several
delivery dates, in accordance with the terms and conditions of the Custodial
Agreement.  The Repurchase Agreement, the
Custodial Agreement, this Guarantee and any other agreements executed in
connection with the Repurchase Agreement and the Custodial Agreement shall be
referred to herein as the “Governing Agreements”.

It is a condition precedent to the purchasing by Buyer
of the Purchased Assets pursuant to the Repurchase Agreement that Guarantor
shall have executed and delivered this Guarantee with respect to the due and
punctual payment and performance when due, whether at stated maturity, by
acceleration or otherwise, of all of the following: (a) all payment obligations
owing by Seller to Buyer under or in connection with the Repurchase Agreement
and any other Governing Agreements; (b) any and all extensions, renewals,
modifications, amendments or substitutions of the foregoing; (c) all expenses,
including, without limitation, reasonable attorneys’ fees and disbursements,
that are incurred by Buyer in the enforcement of any of the foregoing or any
obligation of Guarantor hereunder; and (d) any other obligations of Seller with
respect to Buyer under each of the Governing Agreements (collectively, the “Obligations”).

NOW, THEREFORE, in
consideration of the foregoing premises, to induce Buyer to enter into the
Repurchase Documents and to enter into the transactions contemplated
thereunder, Guarantor hereby agree with Buyer, as follows:

 

1.                                       Defined
Terms.  Unless otherwise defined
herein, terms which are defined in the Repurchase Agreement and used herein are
so used as so defined.

2.                                       Guarantee.  (a) 
Guarantor hereby unconditionally and irrevocably guarantees to Buyer the
prompt and complete payment and performance of the Obligations by Seller when
due (whether at the stated maturity, by acceleration or otherwise), as the case
may be, and agrees to indemnify and hold harmless Buyer from any and all
claims, damages, losses, liabilities, costs and expenses that may be incurred
by or asserted or awarded against Buyer, in each case relating to or arising
out of the Obligations, as the case may be.

(b)                                 Guarantor
further agrees to pay any and all reasonable expenses (including, without
limitation, all reasonable fees and disbursements of counsel) which may be paid
or incurred by Buyer in enforcing, or obtaining advice of counsel in respect
of, any rights with respect to, or collecting, any or all of the Obligations
and/or enforcing any rights with respect to, or collecting against, Guarantor
under this Guarantee.  This Guarantee
shall remain in full force and effect until the later of (i) the date upon
which the Obligations are paid in full and (ii) the termination of the
Repurchase Agreement, notwithstanding that from time to time prior thereto
Seller may be free from any Obligations.

(c)                                  No
payment or payments made by Seller or any other Person or received or collected
by Buyer from Seller or any other Person by virtue of any action or proceeding
or any set-off or appropriation or application, at any time or from time to
time, in reduction of or in payment of the Obligations shall be deemed to
modify, reduce, release or otherwise affect the liability of Guarantor
hereunder which shall, notwithstanding any such payment or payments, remain
liable for the amount of the Obligations until the Obligations are paid in
full.

(d)                                 Guarantor
agrees that whenever, at any time, or from time to time, Guarantor shall make
any payment to Buyer on account of Guarantor’s liability hereunder, such
Guarantor will notify Buyer in writing that such payment is made under this
Guarantee for such purpose.

3.                                       Subrogation.  Upon making any payment hereunder, Guarantor
shall be subrogated to the rights of Buyer against Seller and any collateral
for any Obligations with respect to such payment; provided that
Guarantor shall not seek to enforce any right or receive any payment by way of
subrogation until all amounts due and payable by Seller to Buyer under the
Repurchase Documents or any related documents have been paid in full; and
further provided that such subrogation rights shall be subordinate in
all respects to all amounts owing to Buyer under the Repurchase Documents.

4.                                       Amendments,
etc. with Respect to the Obligations. 
Guarantor shall remain obligated hereunder notwithstanding that, without
any reservation of rights against such Guarantor, and without notice to or
further assent by such Guarantor, any demand for payment of any of the
Obligations made by Buyer may be rescinded by Buyer and any of the Obligations
continued, and the Obligations, or the liability of any other party upon or for
any part thereof, or any collateral security or guarantee therefor or right of
offset with respect thereto, may, from time to time, in whole or in part, be
renewed, extended, amended, modified, accelerated, compromised, waived,
surrendered or released by Buyer, and any Repurchase Document and any

 

other document in connection
therewith may be amended, modified, supplemented or terminated, in whole or in
part, as Buyer may deem advisable from time to time, and any collateral
security, guarantee or right of offset at any time held by Buyer for the
payment of the Obligations may be sold, exchanged, waived, surrendered or
released.  Buyer shall have no obligation
to protect, secure, perfect or insure any lien at any time held by it as
security for the Obligations or for this Guarantee or any property subject
thereto.  When making any demand
hereunder against Guarantor, Buyer may, but shall be under no obligation to,
make a similar demand on Seller or any other guarantor, and any failure by
Buyer to make any such demand or to collect any payments from Seller or any
such other guarantor or any release of Seller or such other guarantor shall not
relieve Guarantor of its Obligations or liabilities hereunder, and shall not
impair or affect the rights and remedies, express or implied, or as a matter of
law, of Buyer against Guarantor.  For the
purposes hereof “demand” shall include the commencement and continuance of any
legal proceedings.

5.                                       Guarantee
Absolute and Unconditional.  (a)  Guarantor hereby agrees that its obligations
under this Guarantee constitute a guarantee of payment when due and not of
collection.  Guarantor waive any and all
notice of the creation, renewal, extension or accrual of any of the Obligations
and notice of or proof of reliance by Buyer upon this Guarantee or acceptance
of this Guarantee; the Obligations, and any of them, shall conclusively be
deemed to have been created, contracted or incurred in reliance upon this
Guarantee; and all dealings between Seller or Guarantor, on the one hand, and
Buyer, on the other hand, shall likewise be conclusively presumed to have been
had or consummated in reliance upon this Guarantee.  Guarantor waives promptness, diligence,
presentment, protest, demand for payment and notice of default or nonpayment to
or upon Seller or the Guarantee with respect to the Obligations.  This Guarantee shall be construed as a
continuing, absolute and unconditional guarantee of payment without regard to
(i) the validity, regularity or enforceability of any agreement, any of the
Obligations or any collateral security therefor or guarantee or right of offset
with respect thereto at any time or from time to time held by Buyer, (ii) any
defense, set-off or counterclaim (other than a defense of payment or
performance) which may at any time be available to or be asserted by Seller
against Buyer, (iii) any requirement that Buyer exhaust any right to take any
action against Seller or any other Person prior to or contemporaneously with
proceeding to exercise any right against Guarantor under this Guarantee or (iv)
any other circumstance whatsoever (with or without notice to or knowledge of
Seller or Guarantor) which constitutes, or might be construed to constitute, an
equitable or legal discharge of Seller for the Obligations or of Guarantor
under this Guarantee, in bankruptcy or in any other instance.  When pursuing its rights and remedies
hereunder against Guarantor, Buyer may, but shall be under no obligation, to
pursue such rights and remedies that Buyer may have against Seller or any other
Person or against any collateral security or guarantee for the Obligations or
any right of offset with respect thereto, and any failure by Buyer to pursue
such other rights or remedies or to collect any payments from Seller or any
such other Person or to realize upon any such collateral security or guarantee
or to exercise any such right of offset, or any release of Seller or any such
other Person or any such collateral security, guarantee or right of offset,
shall not relieve Guarantor of any liability hereunder, and shall not impair or
affect the rights and remedies, whether express, implied or available as a
matter of law, of Buyer against Guarantor. 
This Guarantee shall remain in full force and effect and be binding in
accordance with and to the extent of its terms upon each  Guarantor and its respective successors and
assigns thereof, and shall inure to the benefit of Buyer, and its respective
successors, endorsees, transferees and assigns, until all the Obligations and
the obligations of Guarantor under this Guarantee shall have been satisfied by
payment in full, notwithstanding that from time to time during the term of the
Repurchase Documents Seller may be free from any Obligations.

 

(b)                                 Without
limiting the generality of the foregoing, Guarantor hereby agrees,
acknowledges, and represents and warrants to Buyer as follows:

(i)                                     Guarantor
hereby waives any defense arising by reason of, and any and all right to assert
against Buyer any claim or defense based upon, an election of remedies by Buyer
which in any manner impairs, affects, reduces, releases, destroys and/or
extinguishes such Guarantor’s subrogation rights, rights to proceed against
Seller, or any other guarantor for reimbursement or contribution, and/or any
other rights of such Guarantor to proceed against Seller against any other
guarantor, or against any other person or security.

(ii)                                  Guarantor
is presently informed of the financial condition of Seller and of all other
circumstances which diligent inquiry would reveal and which bear upon the risk
of nonpayment of the Obligations. 
Guarantor hereby covenants that it will make its own investigation and
will continue to keep itself informed about Seller’s financial condition, the
status of other guarantors, if any, of all other circumstances which bear upon
the risk of nonpayment and that it will continue to rely upon sources other
than Buyer for such information and will not rely upon Buyer for any such
information.  Absent a written request
for such information by Guarantor to Buyer, Guarantor hereby waives the right,
if any, to require Buyer to disclose to Guarantor any information which Buyer
may now or hereafter acquire concerning such condition or circumstances
including, but not limited to, the release of or revocation by any other
guarantor.

(iii)                               Guarantor
has independently reviewed the Repurchase Documents and related agreements and
has made an independent determination as to the validity and enforceability
thereof, and in executing and delivering this Guarantee to Buyer, such
Guarantor is not in any manner relying upon the validity, and/or enforceability,
and/or attachment, and/or perfection of any liens or security interests of any
kind or nature granted by Seller or any other guarantor to Buyer, now or at any
time and from time to time in the future.

6.                                       Reinstatement.  This Guarantee shall continue to be
effective, or be reinstated, as the case may be, if at any time payment, or any
part thereof, of any of the Obligations is rescinded or must otherwise be
restored or returned by Buyer upon the insolvency, bankruptcy, dissolution,
liquidation or reorganization of Seller or upon or as a result of the
appointment of a receiver, intervenor or conservator of, or trustee or similar
officer for, Seller or any substantial part of Seller’s property, or otherwise,
all as though such payments had not been made.

7.                                       Payments.  Guarantor hereby agrees that the Obligations
will be paid to Buyer without set-off or counterclaim in U.S. Dollars at the
address specified in writing by Buyer.

 

8.             Representations
and Warranties.  Guarantor represents
and warrants that:

(a)           Guarantor has the legal capacity and
the legal right to execute and deliver this Guarantee and to perform Guarantor’s
obligations hereunder;

(b)           no consent or authorization of,
filing with, or other act by or in respect of, any arbitrator or governmental
authority and no consent of any other Person (including, without limitation,
any creditor of Guarantor) is required in connection with the execution,
delivery, performance, validity or enforceability of this Guarantee;

(c)           this Guarantee has been duly executed
and delivered by Guarantor and constitutes a legal, valid and binding
obligation of Guarantor enforceable in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors’ rights
generally and by general principles of equity (whether enforcement is sought in
proceedings in equity or at law);

(d)           the execution, delivery and
performance of this Guarantee will not violate any law, treaty, rule or
regulation or determination of an arbitrator, a court or other governmental
authority, applicable to or binding upon Guarantor or any of its property or to
which Guarantor or any of its property is subject (“Requirement of Law”),
or any provision of any security issued by Guarantor or of any agreement,
instrument or other undertaking to which Guarantor is a party or by which it or
any of its property is bound (“Contractual Obligation”), and will not
result in or require the creation or imposition of any lien on any of the
properties or revenues of Guarantor pursuant to any Requirement of Law or
Contractual Obligation of Guarantor;

(e)           no litigation, investigation or proceeding
of or before any arbitrator or Governmental Authority is pending or, to the
knowledge of Guarantor, threatened by or against Guarantor or against any of
Guarantor’s properties or revenues with respect to this Guarantee or any of the
transactions contemplated hereby; and

(f)            except as disclosed in writing to
Buyer prior to the date hereof, Guarantor has filed or caused to be filed all
tax returns which, to the knowledge of Guarantor, are required to be filed and
has paid all taxes shown to be due and payable on said returns or on any
assessments made against him or any of Guarantor’s property and all other
taxes, fees or other charges imposed on him or any of Guarantor’s property by
any Governmental Authority (other than any the amount or validity of which are
currently being contested in good faith by appropriate proceedings); no tax
lien has been filed, and, to the knowledge of Guarantor, no claim is being
asserted, with respect to any such tax, fee or other charge.

Guarantor agrees that the foregoing representations
and warranties shall be deemed to have been made by such Guarantor on the date
of each Transaction under the Repurchase Agreement, on and as of such date of
the Transaction, as though made hereunder on and as of such date.

9.             Severability. 
Any provision of this Guarantee which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any

 

such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

10.           Paragraph Headings.  The paragraph headings used in this Guarantee
are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof.

11.           No Waiver; Cumulative Remedies.  Buyer shall not by any act (except by a
written instrument pursuant to paragraph 13 hereof), delay, indulgence, omission
or otherwise be deemed to have waived any right or remedy hereunder or to have
acquiesced in any default or event of default or in any breach of any of the
terms and conditions hereof.  No failure
to exercise, nor any delay in exercising, on the part of Buyer, any right,
power or privilege hereunder shall operate as a waiver thereof.  No single or partial exercise of any right,
power or privilege hereunder shall preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.  A waiver by Buyer of any right or remedy
hereunder on any one occasion shall not be construed as a bar to any right or
remedy which Buyer would otherwise have on any future occasion.  The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of
any rights or remedies provided by law.

12.           Waivers and Amendments; Successors
and Assigns; Governing Law.  None of
the terms or provisions of this Guarantee may be waived, amended, supplemented
or otherwise modified except by a written instrument executed by Guarantor and
Buyer, provided that, subject to any limitations set forth in the
Repurchase Agreement, any provision of this Guarantee may be waived by Buyer in
a letter or agreement executed by Buyer or by telex or facsimile transmission
from Buyer.  This Guarantee shall be
binding upon the heirs, personal representatives, successors and assigns of
Guarantor and shall inure to the benefit of Buyer, and their respective
successors and assigns.  THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

13.           Notices.  Notices by Buyer to any Guarantor may be
given by mail, or by telecopy transmission, addressed to such Guarantor at the
address or transmission number set forth under its signature below and shall be
effective (a) in the case of mail, five days after deposit in the postal
system, first class certified mail and postage pre-paid, (b) one Business Day
following timely delivery to a nationally recognized overnight courier service
for next Business Day delivery and (c) in the case of telecopy transmissions,
when sent, transmission electronically confirmed.

14.           SUBMISSION TO JURISDICTION;
WAIVERS.  GUARANTOR HEREBY
IRREVOCABLY AND UNCONDITIONALLY:

(A)          SUBMITS FOR GUARANTOR AND GUARANTOR’S
PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTEE AND THE
OTHER LOAN DOCUMENTS TO WHICH GUARANTOR IS A PARTY, OR FOR RECOGNITION AND
ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, THE COURTS OF THE UNITED
STATES OF AMERICA FOR THE

 

SOUTHERN DISTRICT OF NEW
YORK, AND APPELLATE COURTS FROM ANY THEREOF;

(B)           CONSENTS THAT ANY SUCH ACTION OR
PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND WAIVES ANY OBJECTION THAT
GUARANTOR MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR
PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN
AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME;

(C)           AGREES THAT SERVICE OF PROCESS IN ANY
SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY
REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL),
POSTAGE PREPAID, TO GUARANTOR AT GUARANTOR’S ADDRESS SET FORTH UNDER GUARANTOR’S
SIGNATURE BELOW OR AT SUCH OTHER ADDRESS OF WHICH BUYER SHALL HAVE BEEN
NOTIFIED; AND

(D)          AGREES THAT NOTHING HEREIN SHALL
AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY
LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION.

15.           Integration.  This Guarantee represents the agreement of
Guarantor with respect to the subject matter hereof and there are no promises
or representations by Buyer relative to the subject matter hereof not reflected
herein.

16.           Acknowledgments.  Guarantor hereby acknowledges that:

(a)           Guarantor has been advised by counsel
in the negotiation, execution and delivery of this Guarantee and the related
documents;

(b)           Buyer has no fiduciary relationship
to Guarantor, and the relationship between Buyer and Guarantor is solely that
of surety and creditor; and

(c)           no joint venture exists between or
among any of Buyer, Guarantor and Seller.

17.           WAIVERS OF JURY TRIAL.  GUARANTOR HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS GUARANTEE OR ANY RELATED DOCUMENT AND FOR ANY COUNTERCLAIM HEREIN OR
THEREIN.

[SIGNATURES COMMENCE ON THE FOLLOWING PAGE]

 

IN WITNESS WHEREOF, the undersigned has caused this
Guarantee Agreement to be duly executed and delivered as of the date first
above written.

	
  

  	
  DIVIDEND CAPITAL
  TOTAL REALTY TRUST, INC, a Maryland corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
  

  	
  Address for
  Notices:  518 Seventeenth Street, 17th Floor, Denver, Colorado 80202

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Telephone:  [    ]

  
	
   

  	
  Telecopy:  [    ]

  
	
   

  	
  Attention:  [    ]

  

 

 

EXHIBIT
XII

FORM OF
MARGIN DEFICIT NOTICE

[DATE]/[TIME]

VIA ELECTRONIC TRANSMISSION

[SELLER]

Attention:

Re:          Master Repurchase Agreement, dated as
of October 26, 2006 (as amended, restated, supplemented, or otherwise modified
and in effect from time to time, the “Master Repurchase Agreement”;
capitalized terms used but not otherwise defined herein shall have the meanings
assigned thereto in the Master Repurchase Agreement) by and among JPMorgan
Chase Bank, N.A. (“Buyer”), DCTRT Securities Holdco LLC a Delaware
limited liability company and TRT Lending LLC (each, a “Seller”).

 

Pursuant to Article 4(a) of the Master
Repurchase Agreement, Buyer hereby notifies Seller of the existence of a Margin
Deficit as of the date hereof as follows:

	
  [Repurchase Price for
  specific Purchased Asset:

  	
   

  	
  $

  	
   

  	
   

  
	
  Asset Value of such Purchased Asset:

  	
   

  	
  $

  	
   

  	
   

  
	
  MARGIN DEFICIT:

  	
   

  	
  $

  	
   

  	
  ]

  
	
  [Aggregate Repurchase Price of all Purchased Assets:

  	
   

  	
  $

  	
   

  	
   

  
	
  Maximum Amount:

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  MARGIN DEFICIT:

  	
   

  	
  $

  	
   

  	
  ]

  

 

SELLER IS REQUIRED
TO CURE THE MARGIN DEFICIT SPECIFIED ABOVE IN ACCORDANCE WITH THE MASTER
REPURCHASE AGREEMENT AND WITHIN THE TIME PERIOD SPECIFIED ARTICLE 4(a)
THEREOF.

 

 

	
  

  	
  JPMORGAN CHASE
  BANK, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT XIII

UCC FILING JURISDICTIONS

1.  Delaware

2.  Maryland

 

EXHIBIT
XIV

FORM OF OPINION(S)

[See Tab [   ]].

 

EXHIBIT XV

ADDITIONAL ELIGIBLE
COLLATERAL

	
  

  	
   

  	
  ADDITIONAL ELIGIBLE

  COLLATERAL

  	
   

  	
  REMAINING MATURITY

  FROM THE VALUATION

  DATE

  	
   

  	
  VALUATION

  PERCENTAGE

  	
   

  
	
  (1)

  	
   

  	
  US-CASH

  	
   

  	
  Not applicable

  	
   

  	
  100

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  US-TBILL, US-TNOTE, US-TBOND, US-TIPS

  	
   

  	
  Less than 1 year

  	
   

  	
  99

  	
  %

  
	
  

  	
   

  	
   

  	
   

  	
  Between 1 and 5 years

  	
   

  	
  98

  	
  %

  
	
  

  	
   

  	
   

  	
   

  	
  Between 5 and 10 years

  	
   

  	
  97

  	
  %

  
	
  

  	
   

  	
   

  	
   

  	
  Between 10 and 30 years

  	
   

  	
  95

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  US-STRIP

  	
   

  	
  All maturities

  	
   

  	
  90

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
  US-GNMA, US-FNMA, US- FHLMC, US-NCAD, US- NCADN

  	
   

  	
  Less than 1 year

  	
   

  	
  99

  	
  %

  
	
  

  	
   

  	
   

  	
   

  	
  Between 1 and 5 years

  	
   

  	
  97

  	
  %

  
	
  

  	
   

  	
   

  	
   

  	
  Between 5 and 10 years

  	
   

  	
  96

  	
  %

  
	
  

  	
   

  	
   

  	
   

  	
  Between 10 and 30 years

  	
   

  	
  94

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (5)

  	
   

  	
  US-GNMAMBS, US- FNMAMBS, US-FHLMCMBS

  	
   

  	
  Not applicable

  	
   

  	
  94

  	
  %

  

 

Definitions. As used in this Exhibit
XV, the following definitions are specified below:

US-CASH - United States of America Dollar (USD)
Cash.  The lawful currency of the United
States of America.

US-TBILL - US Treasury Bills.  Negotiable debt obligations issued pursuant
to USC Title 31, Chapter 31, Section 3104 by the Department of the Treasury
backed by the credit of the United States of America, having a maturity at
issuance of no greater than 1 year.

US-TNOTE - US Treasury Notes.  Negotiable debt obligations issued pursuant
to USC Title 31, Chapter 31, Section 3103 by the Department of the Treasury
backed by the credit of the United States of America, having a maturity at
issuance of at least 1 year but less than 10 years.

US-TBOND - US Treasury Bonds.  Negotiable debt obligations issued pursuant
to USC Title 31, Chapter 31, Section 3102 by the Department of the Treasury
backed by the credit of the United States of America.

 

US-TIPS - US Treasury Inflation Protected Issues
(TIPS).  Securities issued by the
Department of the Treasury backed by the credit of the United States of America
where the principal is changed based on changes of the consumer price index.

US-STRIP - US Treasury Strips.  Securities issued by the Department of the
Treasury backed by the credit of the United States of America that represent
either interest components or principal components stripped from underlying US
treasury obligations under the program of the Department of the Treasury called
“Separate Trading of Registered Interest and Principal Securities”.

US-GNMA - Callable Agency Debt of the Government
National Mortgage Association (“GNMA”). 
Fixed-rate, callable, non-amortizing U.S. Dollar denominated debt
securities; in book entry form issued by GNMA the full and timely payment of
principal and interest of which is guaranteed by the U.S. Government.

US-FNMA - Callable Agency Debt of the  Federal National Mortgage Association (“FNMA”).  Fixed-rate, callable, non-amortizing U.S.
Dollar denominated senior debt securities in book entry form issued by FNMA.

US-FHLMC - Callable Agency Debt of the Federal Home
Loan Mortgage Corporation (“FHLMC”). 
Fixed-rate, callable, non-amortizing U.S. Dollar denominated senior debt
securities in book entry form issued by FHLMC.

US-NCAD - Non-Callable Agency Debt of Various
Issuers.  Fixed-rate, non-callable,
non-amortizing U.S. Dollar denominated senior debt securities of fixed maturity
in book entry form issued by GNMA, FNMA or FHLMC.

US-NCADN - Non-Callable Agency Discount Notes of
Various Issuers.  Non-callable U.S.
Dollar denominated discount notes sold at a discount from their principal
amount payable at maturity with an original maturity of 360 days or less in
book entry form and issued by GNMA, FNMA or FHLMC.

US-GNMAMBS - Government National Mortgage Association
Certificates - Mortgage Backed Securities. 
Single-class fully modified pass-through certificates (GNMA
Certificates) in book-entry form backed by single-family residential mortgage
loans, the full and timely payment of principal and interest of which is
guaranteed by the Government National Mortgage Association (excluding REMIC) or
other multi-class pass-through certificates, collateralized mortgage
obligations, pass-through certificates backed by adjustable rate mortgages,
securities paying interest or principal only and derivatives and similar
derivatives securities).

US-FNMAMBS - Federal National Mortgage Association
Certificates - Mortgage Backed Securities. 
Single-class fully modified pass-through certificates (FNMA
Certificates) in book-entry form backed by single-family residential mortgage
loans, the full and timely payment of principal and interest of which is
guaranteed by the Federal National Mortgage Association (excluding REMIC) or
other multi-class pass-through certificates, collateralized mortgage
obligations, pass-through certificates backed by adjustable rate mortgages,
securities paying interest or principal only and derivatives and similar
derivatives securities).

 

US-FHLMCMBS - Federal Home Loan Mortgage Corporation
Certificates - Mortgage Backed Securities. 
Single-class mortgage participation certificates (FHLMC Certificates) in
book-entry form backed by single-family residential mortgage loans, the full
and timely payment of principal and interest of which is guaranteed by the
Federal Home Loan Mortgage Corporation (excluding REMIC) or other multi-class
pass-through certificates, collateralized mortgage obligations, pass through
certificates backed by adjustable rate mortgages, securities paying interest or
principal only and derivatives and similar derivatives securities).

 

EXHIBIT
XVI

FORM OF
SERVICER NOTICE

[DATE]

[SERVICER], as Special Servicer

[ADDRESS]

Attention:  

Re:          Master Repurchase
Agreement, dated as of October 26, 2006 by and between JPMorgan Chase Bank,
N.A. (“Buyer”), DCTRT Securities Holdco LLC and TRT Lending LLC (each, a
“Seller”) (as amended, restated, supplemented, or otherwise modified and
in effect from time to time, the “Master Repurchase Agreement”);
(capitalized terms used but not otherwise defined herein shall have the
meanings assigned thereto in the Master Repurchase Agreement).

Ladies and Gentlemen:

[SERVICER] (the “Servicer”) is servicing
certain mortgage assets for Seller pursuant to one or more Servicing Agreements
between Servicer and Seller (the “Purchased Assets”).  Pursuant to the Master Repurchase Agreement,
Servicer is hereby notified that Seller has granted a security interest to
Buyer in the Purchased Assets which are serviced by Servicer.

Servicer shall segregate all amounts collected on
account of the Purchased Assets sold to Buyer under the Master Repurchase
Agreement, hold them in trust for the sole and exclusive benefit of Buyer, and
remit such collections to the following account which has been established at
LASALLE BANK NATIONAL ASSOCIATION, ABA# 071000505, Account # 724178.1, (the “Cash
Management Account”).  Servicer
acknowledges that the Cash Management Account is held for the benefit of Buyer
pursuant to the Control Agreement, dated as of October 26, 2006, by and between
Seller, Buyer and LASALLE BANK NATIONAL ASSOCIATION.  Upon receipt of a notice of Event of Default
from Buyer, Servicer shall follow the instructions of Buyer with respect to the
Purchased Assets, and shall deliver to Buyer any information with respect to
the Purchased Assets reasonably requested by Buyer.

Servicer hereby agrees that, notwithstanding any
provision to the contrary in any Servicing Agreement which exists between
Servicer and Seller in respect of any Purchased Asset, (i) Servicer is
servicing the Purchased Assets for the joint benefit of Seller and Buyer,
(ii)  Buyer is expressly intended to be a
third-party beneficiary under each Servicing Agreement and (iii) Buyer may, at
any time after the occurrence of an Event of Default, terminate any such
Servicing Agreement immediately upon the delivery of written notice thereof to
Servicer and/or in any event transfer servicing to Buyer’s designee, at no cost
or expense to Buyer, it being 

 

agreed that Seller will
pay any and all fees required to terminate any Servicing Agreement and to
effectuate the transfer of servicing to the designee of Buyer.

Notwithstanding any contrary information or direction
which may be delivered to Servicer by Seller, Servicer may conclusively rely on
any information, direction or notice of an Event of Default delivered by Buyer,
and Seller shall indemnify and hold Servicer harmless for any and all claims
asserted against Servicer for any actions taken in good faith by Servicer in
connection with the delivery of such information or notice of Event of Default.

No provision of this letter may be amended,
countermanded or otherwise modified without the prior written consent of
Buyer.  Buyer is an intended third party
beneficiary of this letter.

Please acknowledge receipt and your agreement to the
terms of this instruction letter by signing in the signature block below and
forwarding an executed copy to Buyer promptly upon receipt.  Any notices to Buyer should be delivered to
the following address: 270 Park Avenue, 7th Floor, New York, NY 10017-2014  Attn: Jeffrey Waller, Telephone: (212)
834-9987, Fax:  (212) 834-6565.

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [SERVICER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACKNOWLEDGED AND AGREED TO:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  [SELLER]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

 

EXHIBIT
XVII

FORM OF RELEASE LETTER

[Date]

JPMorgan Chase Bank, N.A.

270 Park Avenue, 7th Floor

New York, New York 100017-2014

Attention:              Mr. Jeffrey Waller

Re:          Master Repurchase Agreement,
dated as of October 26, 2006 by and between JPMorgan Chase Bank, N.A. (“Buyer”),
DCTRT Securities Holdco LLC and TRT Lending LLC (each, a “Seller”) (as
amended, restated, supplemented, or otherwise modified and in effect from time
to time, the “Master Repurchase Agreement”); (capitalized terms used but
not otherwise defined herein shall have the meanings assigned thereto in the
Master Repurchase Agreement).

Ladies and Gentlemen:

With respect to the Purchased Assets described in the
attached Schedule A (the “Purchased Assets”) (a) we hereby
certify to you that the Purchased Assets are not subject to a lien of any third
party and (b) we hereby release all right, interest or claim of any kind with
respect to such Purchased Assets, such release to be effective automatically
without further action by any party upon payment by Buyer of the amount of the
Purchase Price contemplated under the Master Repurchase Agreement (calculated
in accordance with the terms thereof) in accordance with the wiring instructions
set forth in the Master Repurchase Agreement.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [SERVICER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Schedule A

[List of Purchased Asset
Documents]

 

EXHIBIT
XVIII

[Intentionally omitted.]

 

EXHIBIT
XIX

FORM OF COVENANT COMPLIANCE CERTIFICATE

[    ]
[  ], 200[  ]

JPMorgan Chase Bank, N.A.

270 Park Avenue, 7th Floor

New York, New York 10017-2014

Attention:  Kunal K. Singh

This Compliance
Certificate is furnished pursuant to that certain Master Repurchase Agreement,
dated as of October 26, 2006 (as amended, restated, supplemented, or otherwise
modified and in effect from time to time, the “Master Repurchase Agreement”)
by and among JPMorgan Chase Bank, N.A., (“Buyer”) and DCTRT Securities Holdco
LLC and TRT Lending LLC (each, a “Seller”).  Unless otherwise defined herein, capitalized
terms used in this Compliance Certificate have the respective meanings ascribed
thereto in the Master Repurchase Agreement.

THE UNDERSIGNED HEREBY
CERTIFIES THAT:

1.     I am a duly elected
Responsible Officer of the Seller.

2.     All of the financial
statements, calculations and other information set forth in this Compliance
Certificate, including, without limitation, in any exhibit or other attachment
hereto, are true, complete and correct as of the date hereof.

3.     I have reviewed the terms of
the Master Repurchase Agreement and I have made, or have caused to be made
under my supervision, a detailed review of the transactions and financial
condition of the Seller during the accounting period covered by the financial
statements attached (or most recently delivered to Buyer if none are attached).

4.     Attached as Exhibit 1
hereto are the calculations demonstrating that, after giving effect to any
pending Transactions requested to be entered into, no Margin Deficit shall then
exist.

5.     To the best of my knowledge,
as of the date hereof, and since the date of the certificate most recently
delivered pursuant to Article 12(j), Seller has observed or performed all of
its covenants and other agreements in all material respects, and satisfied in
all material respects, every condition, contained in the Master Repurchase
Agreement and the related documents to be observed, performed or satisfied by
it.

6.     The examinations described in
Paragraph 3 above did not disclose, and I have no knowledge of, the existence
of any condition or event which constitutes an Event of 

 

Default or Default during or at the end of the
accounting period covered by the attached financial statements or as of the
date of this Compliance Certificate (including after giving effect to any
pending Transactions requested to be entered into), except as set forth below.

7.     To the best of my knowledge,
as of the date hereof, the representations and warranties made by Seller in
Article 10 of the Master Repurchase Agreement are true, correct and complete in
all material respects with the same force and effect as if made on and as of
the date hereof.

8.     To the best of my knowledge,
no condition or event that constitutes a “Termination Event”, “Event of Default”,
“Potential Event of Default” or any similar event by Seller, however
denominated, has occurred or is continuing under any Hedging Transaction.

9.     Attached as Exhibit 2
hereto is a description of all interests of Affiliates of each Seller in any
Underlying Mortgaged Property (including without limitation, any lien,
encumbrance or other debt or equity position or other interest in the
Underlying Mortgaged Property that is senior or junior to, or pari passu with, a Mortgage Asset in right
of payment or priority).

10.   Attached as Exhibit 3
hereto are the financial statements required to be delivered pursuant to
Article 12 of the Master Repurchase Agreement (or, if none are required to be
delivered as of the date of this Compliance Certificate, the financial
statements most recently delivered pursuant to Article 12 of the Master
Repurchase Agreement), which financial statements, to the best of my knowledge
after due inquiry, fairly and accurately present in all material respects, the
financial condition and operations of the Seller as of the date or with respect
to the period therein specified, determined in accordance with the requirements
set forth in Article 12.

11.   Attached as Exhibit 4
hereto are the calculations demonstrating compliance with the financial
covenants set forth in Article 11 of the Master Repurchase Agreement.

To the
best of my knowledge, the Seller has, during the period since the delivery of
the immediately preceding Compliance Certificate, observed or performed all of
its covenants and other agreements in all material respects, and satisfied in
all material respects every condition, contained in the Master Repurchase
Agreement and the related documents to be observed, performed or satisfied by
it, and I have no knowledge of the occurrence during such period, or present
existence, of any condition or event which constitutes an Event of Default or
Default (including after giving effect to any pending Transactions requested to
be entered into), except as set forth below.

Described below
are the exceptions, if any, to paragraph 10, listing, in detail, the nature of
the condition or event, the period during which it has existed and the action
which the Parent or any Seller has taken, is taking, or proposes to take with
respect to each such condition or event:

 

 

 

The foregoing
certifications, together with the financial statements, updates, reports,
materials, calculations and other information set forth in any exhibit or other
attachment hereto, or otherwise covered by this Compliance Certificate, are
made and delivered this [  ] day of [    ], 200[  ].

	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

 

EXHIBIT XX

Control Agreement

[See Tab [  ]].

 

EXHIBIT XXI

Form of Custodial Agreement

[See Tab [  ]].

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