Document:

Exhibit 10.1

 

Published CUSIP Number:              

$705,729,000

CREDIT AGREEMENT

Dated as of October 5, 2006

among

HEALTH CARE PROPERTY INVESTORS, INC.,

as Borrower

THE GUARANTORS PARTY HERETO FROM TIME TO TIME,

THE LENDERS PARTY HERETO FROM TIME TO TIME

and

BANK OF AMERICA, N.A.,

as Administrative Agent,

and

BANC OF AMERICA SECURITIES LLC and

UBS SECURITIES LLC,

as Joint Lead Arrangers

and

BANC OF AMERICA SECURITIES LLC,

UBS SECURITIES LLC,

J.P. MORGAN SECURITIES INC. and

BARCLAYS CAPITAL,

as Joint Bookrunners

UBS SECURITIES LLC,

as Syndication Agent

JPMORGAN CHASE BANK, N.A.,

BARCLAYS BANK PLC, and

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Co-Documentation Agents

Cahill Gordon & Reindel LLP

80 Pine Street

New York, New York  10005

 

 

 

TABLE OF CONTENTS

	
  Section

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
   

  	
  DEFINITIONS AND ACCOUNTING TERMS

  	
   

  	
  1

  
	
  1.01

  	
   

  	
  Defined Terms

  	
   

  	
  1

  
	
  1.02

  	
   

  	
  Other Interpretive Provisions

  	
   

  	
  19

  
	
  1.03

  	
   

  	
  Accounting Terms

  	
   

  	
  20

  
	
  1.04

  	
   

  	
  Rounding

  	
   

  	
  20

  
	
  1.05

  	
   

  	
  Times of Day

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
  THE COMMITMENTS AND CREDIT EXTENSIONS

  	
   

  	
  21

  
	
  2.01

  	
   

  	
  Loans

  	
   

  	
  21

  
	
  2.02

  	
   

  	
  Borrowings, Conversions and Continuations of Loans

  	
   

  	
  21

  
	
  2.03

  	
   

  	
  [Intentionally Omitted]

  	
   

  	
  22

  
	
  2.04

  	
   

  	
  [Intentionally Omitted]

  	
   

  	
  22

  
	
  2.05

  	
   

  	
  [Intentionally Omitted]

  	
   

  	
  22

  
	
  2.06

  	
   

  	
  Prepayments

  	
   

  	
  22

  
	
  2.07

  	
   

  	
  Termination or Reduction of Commitments

  	
   

  	
  23

  
	
  2.08

  	
   

  	
  Repayment

  	
   

  	
  23

  
	
  2.09

  	
   

  	
  Interest

  	
   

  	
  23

  
	
  2.10

  	
   

  	
  Fees

  	
   

  	
  24

  
	
  2.11

  	
   

  	
  Computation of Interest and Fees

  	
   

  	
  24

  
	
  2.12

  	
   

  	
  Evidence of Debt

  	
   

  	
  24

  
	
  2.13

  	
   

  	
  Payments Generally; Administrative Agent’s Clawback

  	
   

  	
  25

  
	
  2.14

  	
   

  	
  Sharing of Payments by Lenders

  	
   

  	
  26

  
	
  2.15

  	
   

  	
  [Intentionally Omitted]

  	
   

  	
  27

  
	
  2.16

  	
   

  	
  [Intentionally Omitted]

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
  TAXES, YIELD PROTECTION AND ILLEGALITY

  	
   

  	
  27

  
	
  3.01

  	
   

  	
  Taxes

  	
   

  	
  27

  
	
  3.02

  	
   

  	
  Illegality

  	
   

  	
  29

  
	
  3.03

  	
   

  	
  Inability to Determine Rates

  	
   

  	
  29

  
	
  3.04

  	
   

  	
  Increased Costs; Reserves on Eurodollar Rate Loans

  	
   

  	
  29

  
	
  3.05

  	
   

  	
  Compensation for Losses

  	
   

  	
  30

  
	
  3.06

  	
   

  	
  Mitigation Obligations; Replacement of Lenders

  	
   

  	
  31

  
	
  3.07

  	
   

  	
  Survival

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  	
  CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

  	
   

  	
  32

  
	
  4.01

  	
   

  	
  Conditions of Initial Credit Extension

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  34

  
	
  5.01

  	
   

  	
  Existence, Qualification and Power; Compliance with
  Laws

  	
   

  	
  34

  
	
  5.02

  	
   

  	
  Authorization; No Contravention

  	
   

  	
  35

  
	
  5.03

  	
   

  	
  Governmental Authorization; Other Consents

  	
   

  	
  35

  
	
  5.04

  	
   

  	
  Binding Effect

  	
   

  	
  35

  
	
  5.05

  	
   

  	
  Financial Statements; No Material Adverse Effect

  	
   

  	
  35

  
	
  5.06

  	
   

  	
  Litigation

  	
   

  	
  36

  
	
  5.07

  	
   

  	
  No Default

  	
   

  	
  36

  
	
  5.08

  	
   

  	
  Ownership of Property; Liens; Leases

  	
   

  	
  36

  

 

 i
 

 

 

	
  Section

  	
   

  	
   

  	
   

  	
  Page

  

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.09

  	
   

  	
  Environmental Compliance

  	
   

  	
  37

  
	
  5.10

  	
   

  	
  Insurance

  	
   

  	
  37

  
	
  5.11

  	
   

  	
  Taxes

  	
   

  	
  37

  
	
  5.12

  	
   

  	
  ERISA Compliance

  	
   

  	
  37

  
	
  5.13

  	
   

  	
  Subsidiaries; Equity Interests; Subsidiary
  Guarantors

  	
   

  	
  38

  
	
  5.14

  	
   

  	
  Margin Regulations; Investment Company Act; REIT
  Status

  	
   

  	
  38

  
	
  5.15

  	
   

  	
  Disclosure

  	
   

  	
  39

  
	
  5.16

  	
   

  	
  Compliance with Laws

  	
   

  	
  39

  
	
  5.17

  	
   

  	
  Intellectual Property; Licenses, Etc.

  	
   

  	
  39

  
	
  5.18

  	
   

  	
  Use of Proceeds

  	
   

  	
  39

  
	
  5.19

  	
   

  	
  Taxpayer Identification Number

  	
   

  	
  40

  
	
  5.20

  	
   

  	
  Acquisition Documents

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  	
  AFFIRMATIVE COVENANTS

  	
   

  	
  40

  
	
  6.01

  	
   

  	
  Financial Statements

  	
   

  	
  40

  
	
  6.02

  	
   

  	
  Certificates; Other Information

  	
   

  	
  41

  
	
  6.03

  	
   

  	
  Notices

  	
   

  	
  42

  
	
  6.04

  	
   

  	
  Payment of Obligations

  	
   

  	
  43

  
	
  6.05

  	
   

  	
  Preservation of Existence, Etc.

  	
   

  	
  43

  
	
  6.06

  	
   

  	
  Maintenance of Properties

  	
   

  	
  44

  
	
  6.07

  	
   

  	
  Maintenance of Insurance

  	
   

  	
  44

  
	
  6.08

  	
   

  	
  Compliance with Laws

  	
   

  	
  44

  
	
  6.09

  	
   

  	
  Books and Records

  	
   

  	
  44

  
	
  6.10

  	
   

  	
  Inspection Rights

  	
   

  	
  44

  
	
  6.11

  	
   

  	
  Use of Proceeds

  	
   

  	
  45

  
	
  6.12

  	
   

  	
  REIT Status

  	
   

  	
  45

  
	
  6.13

  	
   

  	
  New Subsidiaries; Guarantees

  	
   

  	
  45

  
	
  6.14

  	
   

  	
  Employee Benefits

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  	
  NEGATIVE COVENANTS

  	
   

  	
  46

  
	
  7.01

  	
   

  	
  Liens

  	
   

  	
  46

  
	
  7.02

  	
   

  	
  Investments

  	
   

  	
  46

  
	
  7.03

  	
   

  	
  Indebtedness

  	
   

  	
  47

  
	
  7.04

  	
   

  	
  Fundamental Changes

  	
   

  	
  47

  
	
  7.05

  	
   

  	
  Dispositions

  	
   

  	
  47

  
	
  7.06

  	
   

  	
  Restricted Payments

  	
   

  	
  47

  
	
  7.07

  	
   

  	
  Change in Nature of Business

  	
   

  	
  47

  
	
  7.08

  	
   

  	
  Transactions with Affiliates

  	
   

  	
  48

  
	
  7.09

  	
   

  	
  Burdensome Agreements

  	
   

  	
  48

  
	
  7.10

  	
   

  	
  Financial Covenants

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  	
  EVENTS OF DEFAULT AND REMEDIES

  	
   

  	
  49

  
	
  8.01

  	
   

  	
  Events of Default

  	
   

  	
  49

  
	
  8.02

  	
   

  	
  Remedies Upon Event of Default

  	
   

  	
  51

  
	
  8.03

  	
   

  	
  Application of Funds

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  	
  ADMINISTRATIVE AGENT

  	
   

  	
  52

  
	
  9.01

  	
   

  	
  Appointment and Authority

  	
   

  	
  52

  
	
  9.02

  	
   

  	
  Rights as a Lender

  	
   

  	
  52

  
	
  9.03

  	
   

  	
  Exculpatory Provisions

  	
   

  	
  52

  

 

 ii
 

 

 

	
  Section

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.04

  	
   

  	
  Reliance by Administrative Agent

  	
   

  	
  53

  
	
  9.05

  	
   

  	
  Delegation of Duties

  	
   

  	
  53

  
	
  9.06

  	
   

  	
  Resignation of Administrative Agent

  	
   

  	
  53

  
	
  9.07

  	
   

  	
  Non-Reliance on Administrative Agent and Other
  Lenders

  	
   

  	
  54

  
	
  9.08

  	
   

  	
  No Other Duties, Etc.

  	
   

  	
  54

  
	
  9.09

  	
   

  	
  Administrative Agent May File Proofs of Claim

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  55

  
	
  10.01

  	
   

  	
  Amendments, Etc.

  	
   

  	
  55

  
	
  10.02

  	
   

  	
  Notices; Effectiveness; Electronic Communication

  	
   

  	
  56

  
	
  10.03

  	
   

  	
  No Waiver; Cumulative Remedies

  	
   

  	
  57

  
	
  10.04

  	
   

  	
  Expenses; Indemnity; Damage Waiver

  	
   

  	
  57

  
	
  10.05

  	
   

  	
  Payments Set Aside

  	
   

  	
  59

  
	
  10.06

  	
   

  	
  Successors and Assigns

  	
   

  	
  59

  
	
  10.07

  	
   

  	
  Treatment of Certain Information; Confidentiality

  	
   

  	
  62

  
	
  10.08

  	
   

  	
  Right of Setoff

  	
   

  	
  63

  
	
  10.09

  	
   

  	
  Interest Rate Limitation

  	
   

  	
  63

  
	
  10.10

  	
   

  	
  Counterparts; Integration; Effectiveness

  	
   

  	
  64

  
	
  10.11

  	
   

  	
  Survival of Representations and Warranties

  	
   

  	
  64

  
	
  10.12

  	
   

  	
  Severability

  	
   

  	
  64

  
	
  10.13

  	
   

  	
  Replacement of Lenders

  	
   

  	
  64

  
	
  10.14

  	
   

  	
  Governing Law; Jurisdiction; Etc.

  	
   

  	
  65

  
	
  10.15

  	
   

  	
  Waiver of Jury Trial

  	
   

  	
  66

  
	
  10.16

  	
   

  	
  No Advisory or Fiduciary Responsibility

  	
   

  	
  66

  
	
  10.17

  	
   

  	
  USA Patriot Act Notice

  	
   

  	
  67

  
	
  10.18

  	
   

  	
  Delivery of Signature Page

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
   

  	
  GUARANTY

  	
   

  	
  67

  
	
  11.01

  	
   

  	
  The Guaranty

  	
   

  	
  67

  
	
  11.02

  	
   

  	
  Obligations Unconditional

  	
   

  	
  67

  
	
  11.03

  	
   

  	
  Reinstatement

  	
   

  	
  68

  
	
  11.04

  	
   

  	
  Certain Additional Waivers

  	
   

  	
  69

  
	
  11.05

  	
   

  	
  Remedies

  	
   

  	
  69

  
	
  11.06

  	
   

  	
  Rights of Contribution

  	
   

  	
  69

  
	
  11.07

  	
   

  	
  Guarantee of Payment; Continuing Guarantee

  	
   

  	
  69

  

 

SCHEDULES

2.01         Commitments and Applicable Percentages

5.13         Subsidiaries; Other Equity Investments

10.02       Administrative Agent’s Office; Certain
Addresses for Notices

EXHIBITS

	
  

  	
  Form of

  
	
  A

  	
  Bridge Loan Notice

  
	
  B

  	
  Note

  
	
  C

  	
  Compliance Certificate

  
	
  D

  	
  Assignment and Assumption

  
	
  E

  	
  [Reserved]

  
	
  F

  	
  Opinion Matters

  
	
  G

  	
  Joinder Agreement

  

 iii

 

 

CREDIT AGREEMENT

This
CREDIT AGREEMENT, dated as of October 5, 2006 (as amended, restated,
supplemented or otherwise modified from time to time, this “Agreement”),
among HEALTH CARE PROPERTY INVESTORS, INC., a Maryland corporation (the “Borrower”),
the Subsidiary Guarantors party hereto from time to time (such term and each
other capitalized term used but not defined herein having the meaning given to
it in Article I), the lending institutions party hereto from time
to time (each, a “Lender” and collectively, the “Lenders”), BANK
OF AMERICA, N.A., as Administrative Agent, BANC OF AMERICA SECURITIES LLC, as
Joint Lead Arranger and Joint Bookrunner, UBS SECURITIES LLC, as Joint Lead Arranger, Joint Bookrunner
and Syndication Agent, J.P. MORGAN SECURITIES INC., as Joint Bookrunner, BARCLAYS CAPITAL, as Joint
Bookrunner, JPMORGAN CHASE BANK, N.A., as Co-Documentation Agent, BARCLAYS BANK
PLC, as Co-Documentation Agent, and WACHOVIA BANK, NATIONAL ASSOCIATION, as
Co-Documentation Agent.

WHEREAS,
the Borrower has entered into an agreement and plan of merger (the “CNL
Merger Agreement”), dated as of May 1, 2006, with CNL Retirement
Properties, Inc., a Maryland corporation (“CNL”), and Ocean Acquisition
1, Inc., a Maryland corporation and a wholly owned subsidiary of the Borrower
(the “CNL Merger Sub”), pursuant to which at the closing of the
transactions contemplated by the CNL Merger Agreement, CNL shall merge with and
into the CNL Merger Sub, and the CNL Merger Sub shall be the surviving entity,
and the Borrower (or an affiliate of the Borrower) shall acquire all outstanding
equity interests of CNL (the “CNL Merger”).

WHEREAS,
the Borrower has entered into an agreement and plan of merger (the “Advisor
Merger Agreement”), dated as of May 1, 2006, with CNL Retirement Corp., a
Florida corporation (the “Advisor”), and Ocean Acquisition 2 LLC, a
Florida limited liability company and a wholly owned subsidiary of the Borrower
(the “Advisor Purchaser”), pursuant to which at the closing of the
transactions contemplated by the Advisor Merger Agreement, the Advisor shall
merge with and into the Advisor Purchaser (the “Advisor Merger”) and the
Advisor Purchaser shall be the surviving entity.

WHEREAS,
the Borrower has requested that the Lenders provide a bridge loan facility, and
the Lenders are willing to do so on the terms and conditions set forth herein.

NOW,
THEREFORE, in consideration of the mutual covenants and agreements herein
contained, the parties hereto covenant and agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

1.01        Defined Terms.

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

“Acquired
Business” means CNL and the Advisor and their Subsidiaries.

“Acquisition
Agreements” means, collectively, the CNL Merger Agreement and the Advisor
Merger Agreement.

“Acquisition
Documents” shall mean the collective reference to the CNL Merger Agreement,
the Advisor Merger Agreement and each amendment or supplement thereto and each
other agreement entered into in connection therewith relating to the
Acquisitions.

 

 

“Acquisitions”
means, collectively, the CNL Merger and the Advisor Merger.

“Administrative
Agent” means Bank of America in its capacity as administrative agent under
any of the Loan Documents, or any successor administrative agent.

“Administrative
Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 10.02, or such other
address or account as the Administrative Agent may from time to time notify to
the Borrower and the Lenders.

“Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied by
the Administrative Agent.

“Advisor”
has the meaning specified in the second recital to this Agreement.

“Advisor
Merger” has the meaning specified in the second recital to this Agreement.

“Advisor
Merger Agreement” has the meaning specified in the second recital to this
Agreement.

“Advisor
Purchaser” has the meaning specified in the second recital to this
Agreement.

“Affiliate”
means, with respect to any Person, another Person that directly, or indirectly
through one or more intermediaries, Controls or is Controlled by or is under
common Control with the Person specified.

“Agents”
means the Administrative Agent, the Arrangers, the Bookrunners, the Syndication
Agent and the Documentation Agents.

“Aggregate
Commitments” means the Commitments of all Lenders.  The Aggregate Commitments on the Closing Date
are $705,729,000.

“Agreement”
means this Credit Agreement.

“Applicable
Percentage” means, for each Lender at any time, a fraction (expressed as a
percentage, carried out to the ninth decimal place), the numerator of which is
the amount of such Lender’s Commitment at such time and the denominator of
which is the amount of the Aggregate Commitments at such time.  The initial Applicable Percentages of each
Lender are set forth opposite the name of such Lender on Schedule 2.01
or in the Assignment and Assumption pursuant to which such Lender becomes a
party hereto, as applicable.

“Applicable
Rate” means, for Loans pursuant to this Agreement, from time to time, the
number of basis points per annum set forth in the following table based upon
the Debt Rating as set forth below: 

	
  Pricing

  Level

  	
   

  	
  Debt Ratings

  	
   

  	
  Applicable Rate for

  Eurodollar Rate

  Loans

  	
   

  	
  Applicable Rate

  for Base Rate

  Loans

  
	
  1

  	
   

  	
  3A-
  from S&P/

  3A3
  from Moody’s

  	
   

  	
  60 bps

  	
   

  	
  0 bps

  
	
  2

  	
   

  	
  3BBB+
  from S&P/

  3Baa1
  from Moody’s

  	
   

  	
  65 bps

  	
   

  	
  0 bps

  
	
  3

  	
   

  	
  3BBB
  from S&P/

  3Baa2
  from Moody’s

  	
   

  	
  85 bps

  	
   

  	
  0 bps

  
	
  4

  	
   

  	
  3BBB-
  from S&P/

  3Baa3
  from Moody’s

  	
   

  	
  100 bps

  	
   

  	
  0 bps

  
	
  5

  	
   

  	
  <BBB- from S&P/

  <Baa3 from
  Moody’s or

  nonrated by both S&P

  and Moody’s

  	
   

  	
  135 bps

  	
   

  	
  0 bps

  

 

 2
 

 

“Debt Rating” means, as of any date of determination, the rating
as determined by either S&P or Moody’s (collectively, the “Debt Ratings”)
of the Borrower’s non-credit enhanced, senior unsecured long-term debt; provided
that if a Debt Rating is issued by each of the foregoing rating agencies, then
the higher of such Debt Ratings shall apply (with the Debt Rating for Pricing
Level 1 being the highest and the Debt Rating for Pricing Level 5 being the lowest),
unless there is a split in Debt Ratings of more than one level, in which case
the Pricing Level that is one level higher than the Pricing Level of the lower
Debt Rating shall apply.

Initially,
the Applicable Rate shall be determined based upon the Debt Rating specified in
the certificate delivered pursuant to Section 4.01(a)(vii).  Thereafter, each change in the Applicable
Rate shall occur on the first Business Day following the effective change in
the Debt Rating.

“Approved
Fund” means any Fund that is administered or managed by (a) a Lender, (b)
an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

“Arrangers”
means Banc of America Securities LLC and UBS Securities LLC, each in its capacity
as joint lead arranger and joint bookrunner.

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

“Assignment
and Assumption” means an assignment and assumption entered into by a Lender
and an Eligible Assignee (with the consent of any party whose consent is
required by Section 10.06(b)), and accepted by the Administrative Agent,
in substantially the form of Exhibit D or any other form approved by the
Administrative Agent.

“Attributable
Indebtedness” means, on any date, (a) in respect of any capital lease of
any Person, the capitalized amount thereof that would appear on a balance sheet
of such Person prepared as of such date in accordance with GAAP, and (b) in
respect of any Synthetic Lease Obligation, the capitalized amount of the
remaining lease payments under the relevant lease that would appear on a
balance sheet of such Person prepared as of such date in accordance with GAAP
if such lease were accounted for as a capital lease.

“Audited
Financial Statements” means the audited consolidated balance sheet of the
Borrower and its Subsidiaries for the fiscal year ended December 31, 2005, and
the related consolidated statements of income or operations, shareholders’
equity and cash flows for such fiscal year of the Borrower and its
Subsidiaries, including the notes thereto.

“Bank
Loan Agreement” means the credit agreement, dated as of October 5,
2006 (as amended, restated, supplemented or otherwise modified from time to
time), among the Borrower, as borrower, the subsidiary guarantors party
thereto, the lenders party thereto from time to time, Bank of America, N.A., as
administrative agent, swingline lender and letter of credit issuer, Banc of
America Securities LLC, as joint

 3
 

 

lead
arranger and joint bookrunner, UBS Securities LLC, as joint lead arranger,
joint bookrunner and syndication agent, J.P. Morgan Securities Inc., as joint
bookrunner, Barclays Capital, as joint bookrunner, JPMorgan Chase Bank, N.A.,
as co-documentation agent, and Barclays Bank PLC as co-documentation agent, Wachovia Bank, National Association, as
Co-Documentation Agent, Goldman Sachs Credit Partners L.P., as Co-Documentation
Agent, Merrill Lynch Bank USA, as Co-Documentation Agent, Wells Fargo Bank,
N.A., as Senior Managing Agent, Citicorp North America, Inc., as Senior
Managing Agent, Credit Suisse, Cayman Islands Branch, as Senior Managing Agent,
Key Bank National Association, as Senior Managing Agent, SunTrust Bank, as
Senior Managing Agent, The Bank of Nova Scotia, as Senior Managing Agent, and
The Royal Bank of Scotland plc, as Senior Managing Agent.

“Bank
of America” means Bank of America, N.A. and its successors.

“Base
Rate” means for any day a fluctuating rate per annum equal to the higher of
(a) the Federal Funds Rate plus 1⁄2 of 1% and (b) the rate of interest in effect
for such day as publicly announced from time to time by Bank of America as its “prime
rate.”  The “prime rate” is a rate set by
Bank of America based upon various factors including Bank of America’s costs
and desired return, general economic conditions and other factors, and is used
as a reference point for pricing some loans, which may be priced at, above, or
below such announced rate.  Any change in
such rate announced by Bank of America shall take effect at the opening of
business on the day specified in the public announcement of such change.

“Base
Rate Loan” means a Loan that bears interest based on the Base Rate.

“Bookrunners”
means Banc of America Securities LLC, UBS Securities LLC, J.P. Morgan
Securities Inc. and Barclays Capital each in its capacity as joint bookrunner.

“Borrower”
has the meaning specified in the introductory paragraph hereto.

“Borrower
Material” has the meaning specified in Section 6.02.

“Borrowing”
means a borrowing consisting of simultaneous Loans of the same Type and, in the
case of Eurodollar Rate Loans, having the same Interest Period made by each of
the Lenders pursuant to Section 2.01.

“Bridge
Loan Notice” means a notice of (a) a Borrowing, (b) a conversion
of Loans from one Type to the other or (c) a continuation of Eurodollar
Rate Loans, pursuant to Section 2.02(a), which, if in writing,
shall be substantially in the form of Exhibit A.

“Business
Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact
closed in, the state where the Administrative Agent’s Office is located and, if
such day relates to any Eurodollar Rate Loan, means any such day on which
dealings in Dollar deposits are conducted by and between banks in the London
interbank eurodollar market.

“Casualty
Event” means any involuntary loss of title, any involuntary loss of, damage
to or any destruction of, or any condemnation or other taking (including by any
Governmental Authority) of, any property of the Borrower or any of its
Subsidiaries.  “Casualty Event” shall
include but not be limited to any taking of all or any part of any real
property of any Person or any part thereof, in or by condemnation or other
eminent domain proceedings, or by reason of the temporary requisition of the
use or occupancy of all or any part of any real property of any person or any
part thereof by any Governmental Authority, civil or military, or any
settlement in lieu thereof.

 4
 

 

“Change
in Law” means the occurrence, after the date of this Agreement, of any of
the following:  (a) the adoption or
taking effect of any law, rule, regulation or treaty, (b) any change in
any law, rule, regulation or treaty or in the administration, interpretation or
application thereof by any Governmental Authority or (c) the making or
issuance of any request, guideline or directive (whether or not having the
force of law) by any Governmental Authority.

“Change
of Control” means an event or series of events by which:

(a)           any “person” or “group” (as such
terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of
1934, but excluding any employee benefit plan of such person or its
subsidiaries, and any person or entity acting in its capacity as trustee, agent
or other fiduciary or administrator of any such plan) becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act
of 1934, except that a person or group shall be deemed to have “beneficial
ownership” of all securities that such person or group has the right to acquire
(such right, an “option right”), whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of 35%
or more of the equity securities of the Borrower entitled to vote for members
of the board of directors or equivalent governing body of the Borrower on a
fully-diluted basis (and taking into account all such securities that such
person or group has the right to acquire pursuant to any option right); or

(b)           during any period of 24 consecutive
months, a majority of the members of the board of directors or other equivalent
governing body of the Borrower cease to be composed of individuals (i) who were
members of that board or equivalent governing body on the first day of such
period, (ii) whose election or nomination to that board or equivalent governing
body was approved by individuals referred to in clause (i) above constituting
at the time of such election or nomination at least a majority of that board or
equivalent governing body or (iii) whose election or nomination to that board
or other equivalent governing body was approved by individuals referred to in
clauses (i) and (ii) above constituting at the time of such election or
nomination at least a majority of that board or equivalent governing body
(excluding, in the case of both clause (ii) and clause (iii), any individual
whose initial nomination for, or assumption of office as, a member of that
board or equivalent governing body occurs as a result of an actual or
threatened solicitation of proxies or consents for the election or removal of
one or more directors by any person or group other than a solicitation for the
election of one or more directors by or on behalf of the board of directors).

“Closing
Date” means the first date all the conditions precedent in Section 4.01
are satisfied or waived in accordance with Section 10.01.

“Closing
Date Material Adverse Effect” means the occurrence since December 31, 2005
of any event, circumstance, change or effect (any such item, an “Effect”)
that is, or is reasonably likely to be, materially adverse to the business,
financial condition or results of operations of CNL and its subsidiaries taken
as a whole; provided, however, that in no event shall any of the
following be deemed, either alone or in combination, to constitute, nor shall
any of the following be taken into account in determining whether there has
been, a Closing Date Material Adverse Effect: 
(a) any Effect that results from changes in general economic conditions
or changes in securities markets in general, including any changes in interest
rates, (b) any Effect that results from general changes in the industries in
which CNL and its subsidiaries operate, (c) any Effect related to the public
announcement or the pendency or consummation of the transactions contemplated
by the Acquisition Agreements, (d) any Effect that results from any action
taken at the specific request of the Borrower, (e) any change in the market
price or trading volume of the common stock of CNL after May 1, 2006, provided
that the exception in this clause shall not prevent or otherwise affect a
determination that any Effect(s) underlying such change has, individually or

 5
 

 

in
the aggregate with any other Effect, resulted in a Material Adverse Effect, (f)
any Effect that results from natural disasters, acts of war, sabotage or
terrorism, military actions or the escalation thereof, or (g) any Effects
resulting from any change in applicable law or regulation in the geographic
regions in which CNL or any of its subsidiaries operates; except in the
case of clauses (a), (b), (f) and (g), for any Effect that has a significantly
disproportionate adverse impact on CNL and its subsidiaries compared to other
companies of similar size operating in the principal industries in which CNL
and its subsidiaries operate.

“CNL”
has the meaning specified in the first recital to this Agreement.

“CNL
Merger” has the meaning specified in the first recital to this Agreement.

“CNL
Merger Agreement” has the meaning specified in the first recital to this
Agreement.

“CNL
Merger Sub” has the meaning specified in the first recital to this
Agreement.

“Code”
means the Internal Revenue Code of 1986.

“Commitment”
means, as to each Lender, its obligation to make Loans to the Borrower pursuant
to Section 2.01 in an aggregate principal amount at any one time
outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule
2.01 or in the Assignment and Assumption pursuant to which such Lender
becomes a party hereto, as applicable, as such amount may be adjusted from time
to time in accordance with this Agreement.

“Companies”
means the Borrower and its Subsidiaries and “Company” means any one of
them.

“Compliance
Certificate” means a certificate substantially in the form of Exhibit C.

“Consolidated
EBITDA” means the sum of (a) EBITDA of the Borrower and its Subsidiaries on
a consolidated basis plus (b) without duplication, the Borrower’s Pro Rata
Share of EBITDA of each Material Joint Venture.

“Consolidated
Fixed Charges” means, with respect to the Borrower and its Subsidiaries on
a consolidated basis, the sum of (a) Consolidated Interest Expense plus (b)
Scheduled Principal Payments plus (c) dividends and distributions in respect of
preferred stock (but excluding redemption payments or charges in connection
with the redemption of preferred stock) of the Borrower and its Subsidiaries.

“Consolidated
Intangible Assets” means an amount equal to the Intangible Assets of the Borrower
and its Subsidiaries on a consolidated basis.

“Consolidated
Interest Expense” means the sum of (a) Interest Expense of the Borrower and
its Subsidiaries on a consolidated basis plus (b) without duplication, the
Borrower’s Pro Rata Share of Interest Expense of each Material Joint Venture.

“Consolidated
Shareholders’ Equity” means, as of any date of determination, consolidated
shareholders’ equity of the Borrower and its Subsidiaries, as determined in
accordance with GAAP.

“Consolidated
Tangible Net Worth” means, as of any date of determination, for the
Borrower and its Subsidiaries on a consolidated basis, an amount equal to (a)
Consolidated Shareholders’ Equity on such date minus (b) Consolidated
Intangible Assets on such date.

 6
 

 

“Consolidated
Total Asset Value” means the sum of (a) Total Asset Value of the Borrower
and its Subsidiaries on a consolidated basis plus (b) without duplication, the
Borrower’s Pro Rata Share of Total Asset Value of each Material Joint Venture.

“Consolidated
Total Indebtedness” means the sum of (a) Indebtedness of the Borrower and
its Subsidiaries on a consolidated basis plus (b) without duplication, the
Borrower’s Pro Rata Share of Indebtedness of each Material Joint Venture.

“Consolidated
Unencumbered Asset Value” means the sum of (a) Unencumbered Asset Value of
the Borrower and the Borrower’s Pro Rata Share of Unencumbered Asset Value of
its Subsidiaries on a consolidated basis plus (b) without duplication, the
Borrower’s Pro Rata Share of Unencumbered Asset Value of each Material Joint
Venture; provided, however, that the preceding calculation shall
exclude Subsidiaries and Material Joint Ventures that are not Guarantors and
which have Indebtedness other than Indebtedness owing to the Borrower or any
Guarantor.

“Contractual
Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, instrument or other undertaking to which
such Person is a party or by which it or any of its property is bound.

“Control”
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the
ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled”
have meanings correlative thereto.

“Credit
Extension” means a Borrowing.

“Debt
Rating” has the meaning specified in the definition of “Applicable Rate.”

“Debtor
Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement, receivership, insolvency, reorganization,
or similar debtor relief Laws of the United States or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors
generally.

“Default”
means any event or condition that constitutes an Event of Default or that, with
the giving of any notice, the passage of time, or both, would be an Event of
Default.

“Default
Rate” means an interest rate equal to (i) the Base Rate plus (ii)
the Applicable Rate, if any, applicable to Base Rate Loans plus (iii) 2%
per annum; provided, however, that with respect to a Eurodollar
Rate Loan, the Default Rate shall be an interest rate equal to the interest
rate (including any Applicable Rate) otherwise applicable to such Loan plus 2%
per annum.

“Defaulting
Lender” means any Lender that (a) has failed to fund any portion of the
Loans required to be funded by it hereunder within one Business Day of the date
required to be funded by it hereunder, (b) has otherwise failed to pay over to
the Administrative Agent or any other Lender any other amount required to be
paid by it hereunder within one Business Day of the date when due, unless the
subject of a good faith dispute, or (c) has been deemed insolvent or become the
subject of a bankruptcy or insolvency proceeding.

“Development
Property” means any real property in which the development and construction
with respect thereto are not complete.

 7
 

 

“Disposition”
or “Dispose” means the sale, transfer or assignment (including any sale
and leaseback transaction) of any property by any Person, including any sale,
assignment, transfer or other disposal, with or without recourse, of any notes
or accounts receivable or any rights and claims associated therewith, in any
case other than sales or other dispositions of assets in the ordinary course of
business.

“Documentation
Agent” means each of JPMorgan Chase Bank, N.A., Barclays Bank PLC and
Wachovia Bank, National Association in their capacity as Co-Documentation
Agents.

“Dollar”
and “$” mean lawful money of the United States.

“Domestic
Subsidiary” means any Subsidiary that is organized under the laws of any
political subdivision of the United States.

“EBITDA”
means, for any period, for a Person and its Subsidiaries on a consolidated
basis, an amount equal to the Net Income of such Person and its Subsidiaries
for such period plus (a) the following to the extent deducted in
calculating such Net Income:  (i)
Consolidated Interest Expense for such period, (ii) the provision for Federal,
state, local and foreign income taxes payable by such Person and its Subsidiaries
for such period, (iii) depreciation and amortization expense for such period
and (iv) expenses of such Person and its Subsidiaries reducing such Net Income
during such period which do not represent a cash expenditure in such period or
any prior or future period and minus (b) all items of such Person and
its Subsidiaries increasing Net Income for such period which do not represent a
cash receipt in such period or any prior or future period.

“Eligible
Assignee” means any Person that meets the requirements to be an assignee
under Section 10.06(b)(iii), (v) and (vi) (subject to
such consents, if any, as may be required under Section 10.06(b)(iii)).

“Environmental
Laws” means any and all Federal, state, local, and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits,
concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including those related to
hazardous substances or wastes, air emissions and discharges to waste or public
systems.

“Environmental
Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or
indemnities), of the Borrower or any of its Subsidiaries directly or indirectly
resulting from or based upon (a) violation of any Environmental Law, (b) the
generation, use, handling, transportation, storage, treatment or disposal of
any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the
release or threatened release of any Hazardous Materials into the environment
or (e) any contract, agreement or other consensual arrangement pursuant to
which liability is assumed or imposed with respect to any of the foregoing.

“Equity
Interests” means, with respect to any Person, all of the shares of capital
stock of (or other ownership or profit interests in) such Person and all of the
warrants or options for the purchase or acquisition from such Person of shares
of capital stock of (or other ownership or profit interests in) such Person.

“ERISA”
means the Employee Retirement Income Security Act of 1974.

“ERISA
Affiliate” means any trade or business (whether or not incorporated) under
common control with the Borrower within the meaning of Section 414(b) or (c) of
the Code (and Sections 414(m) and (o) of the Code for purposes of provisions
relating to Section 412 of the Code).

 8
 

 

“ERISA
Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a
withdrawal by the Borrower or any ERISA Affiliate from a Pension Plan subject
to Section 4063 of ERISA during a plan year in which it was a substantial
employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of
operations that is treated as such a withdrawal under Section 4062(e) of ERISA;
(c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate
from a Multiemployer Plan or notification that a Multiemployer Plan is in
reorganization; (d) the filing of a notice of intent to terminate, the
treatment of a Plan amendment as a termination under Sections 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension
Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds
under Section 4042 of ERISA for the termination of, or the appointment of a
trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the
imposition of any liability under Title IV of ERISA, other than for PBGC
premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower
or any ERISA Affiliate.

“Eurodollar
Rate” means, for any Interest Period with respect to a Eurodollar Rate
Loan, the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA
LIBOR”), as published by Reuters (or other commercially available source
providing quotations of BBA LIBOR as designated by the Administrative Agent
from time to time) at approximately 11:00 a.m., London time, two Business Days
prior to the commencement of such Interest Period, for Dollar deposits (for delivery
on the first day of such Interest Period) with a term equivalent to such
Interest Period.  If such rate is not
available at such time for any reason, then the “Eurodollar Rate” for such
Interest Period shall be the rate per annum determined by the Administrative
Agent to be the rate at which deposits in Dollars for delivery on the first day
of such Interest Period in same day funds in the approximate amount of the
Eurodollar Rate Loan being made, continued or converted by Bank of America and
with a term equivalent to such Interest Period would be offered by Bank of
America’s London Branch to major banks in the London interbank eurodollar
market at their request at approximately 4:00 p.m. (London time) two Business
Days prior to the commencement of such Interest Period.

“Eurodollar
Rate Loan” means a Loan that bears interest at a rate based on the Eurodollar
Rate.

“Event
of Default” has the meaning specified in Section 8.01.

“Excluded
Taxes” means, with respect to the Administrative Agent, any Lender or any
other recipient of any payment to be made by or on account of any obligation of
the Borrower hereunder, (a) taxes imposed on or measured by its overall net
income (however denominated), and franchise taxes imposed on it (in lieu of net
income taxes), by the jurisdiction (or any political subdivision thereof) under
the laws of which such recipient is organized or in which its principal office
is located or, in the case of any Lender, in which its applicable Lending
Office is located, (b) any branch profits taxes imposed by the United States or
any similar tax imposed by any other jurisdiction in which the Borrower is
located and (c) in the case of a Foreign Lender (other than an assignee
pursuant to a request by the Borrower under Section 10.13), any withholding
tax that is imposed on amounts payable to such Foreign Lender at the time such
Foreign Lender becomes a party hereto (or designates a new Lending Office) or
is attributable to such Foreign Lender’s failure or inability (other than as a
result of a Change in Law) to comply with Section 3.01(e), except to the
extent that such Foreign Lender (or its assignor, if any) was entitled, at the
time of designation of a new Lending Office (or assignment), to receive
additional amounts from the Borrower with respect to such withholding tax
pursuant to Section 3.01(a).

“Existing
CNL Credit Agreement” means that certain Amended and Restated Credit
Agreement dated as of August 23, 2005 among CNL Retirement Partners, LP, as
borrower, CNL Retirement GP Corp., CNL Retirement LP Corp., CNL Retirement
Properties, Inc. and each of the other guarantors, Bank of America, N.A., as
administrative agent, swing line lender and L/C issuer, JPMorgan Chase Bank,
N.A. and General Electric Capital Corporation as co-syndication agents,
Wachovia Bank, National Association and Key Bank National Association, as
co-documentation agents and the other lenders party thereto, and Banc of
America Securities LLC, as sole lead arranger and sole book manager.

 9
 

 

“Existing
Credit Agreement” means that certain Credit Agreement, dated as of October
26, 2004, among the Borrower, Bank of America, N.A., as administrative agent,
swing line lender, and issuing bank, and the lenders party thereto.

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

“Fee
Letter” means the Amended and Restated Bank and Bridge Facilities Fee
Letter Agreement, dated July 10, 2006, among the Borrower, Bank of
America, N.A., Banc of America Securities LLC, UBS Loan Finance LLC, UBS
Securities LLC, JPMorgan Chase Bank, National Association, J.P. Morgan
Securities Inc., Barclays Bank PLC and Barclays Capital.

“Fixed
Charge Coverage Ratio” means, on the last day of any fiscal quarter, the
ratio of (a) Consolidated EBITDA for the twelve month period ending on such
date to (b) Consolidated Fixed Charges for the twelve month period ending on
such date.

“Foreign
Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which the Borrower is a resident for tax purposes.  For purposes of this definition, the United
States, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

“Foreign
Subsidiary” shall mean a Subsidiary that is organized under the laws of a
jurisdiction other than the United States or any state thereof or the District
of Columbia.

“FRB”
means the Board of Governors of the Federal Reserve System of the United
States.

“Fund”
means any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and
similar extensions of credit in the ordinary course of its business.

“GAAP”
means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants and statements and pronouncements
of the Financial Accounting Standards Board or such other principles as may be
approved by a significant segment of the accounting profession in the United
States, that are applicable to the circumstances as of the date of
determination, consistently applied.

“Governmental
Authority” means the government of the United States or any other nation,
or of any political subdivision thereof, whether state or local, and any
agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including
any supra-national bodies such as the European Union or the European Central
Bank).

 10
 

 

“Granting
Lender” has the meaning set forth in Section 10.06(h).

“Guarantee”
means, as to any Person, (a) any obligation, contingent or otherwise, of such
Person guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation payable or performable by another Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any
obligation of such Person, direct or indirect, (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or services
for the purpose of assuring the obligee in respect of such Indebtedness or
other obligation of the payment or performance of such Indebtedness or other
obligation, (iii) to maintain working capital, equity capital or any other
financial statement condition or liquidity or level of income or cash flow of
the primary obligor so as to enable the primary obligor to pay such
Indebtedness or other obligation, or (iv) entered into for the purpose of
assuring in any other manner the obligee in respect of such Indebtedness or
other obligation of the payment or performance thereof or to protect such obligee
against loss in respect thereof (in whole or in part), or (b) any Lien on any
assets of such Person securing any Indebtedness or other obligation of any
other Person, whether or not such Indebtedness or other obligation is assumed
by such Person (or any right, contingent or otherwise, of any holder of such
Indebtedness to obtain any such Lien).  The
amount of any Guarantee shall be deemed to be an amount equal to the stated or
determinable amount of the related primary obligation, or portion thereof, in respect
of which such Guarantee is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof as determined by the
guaranteeing Person in good faith.  The
term “Guarantee” as a verb has a corresponding meaning.

“Guarantors” means a collective reference to
the Subsidiary Guarantors and each other Person that subsequently joins as a
Guarantor pursuant to Section 6.13, together with their successors and
permitted assigns, and “Guarantor” means
any one of them.

“Hazardous
Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum
or petroleum distillates, asbestos or asbestos-containing materials,
polychlorinated biphenyls, radon gas, infectious or medical wastes and all
other substances or wastes of any nature regulated pursuant to any Environmental
Law.

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

(a)           all obligations of such Person for
borrowed money, whether secured or unsecured, and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar
instruments including, without limitation, recourse and non-recourse mortgage
debt;

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

(c)           aggregate net obligations of such
Person under Swap Contracts;

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

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

 11
 

 

(f)            capital leases and Synthetic Lease
Obligations;

(g)           all obligations of such Person to
purchase, redeem, retire, defease or otherwise make any payment in respect of
any Equity Interest in such Person at any time prior to the date that is six
months after the Maturity Date, valued, in the case of a redeemable preferred
interest, at the liquidation preference thereof; and

(h)           all Guarantees of such Person in
respect of any of the foregoing.

For
all purposes hereof, (i) the amount of any net obligation under any Swap
Contract on any date shall be deemed to be the Swap Termination Value thereof
as of such date (which shall be a positive number if such amount would be owed
by the Borrower and a negative number if such amount would be owed to the
Borrower) and the net obligations under Swap Contacts shall not be less than
zero, (ii) the amount of any capital lease or Synthetic Lease Obligation as of
any date shall be deemed to be the amount of Attributable Indebtedness in
respect thereof as of such date and (iii) Consolidated Total Indebtedness shall
not include security deposits, accrued liabilities or prepaid rent, each as
defined in accordance with GAAP.

“Indemnified
Taxes” means Taxes other than Excluded Taxes.

“Indemnitee”
has the meaning specified in Section 10.04(b).

“Insurance
Proceeds” means any proceeds received from insurance maintained by or on
behalf of the Borrower or any Subsidiary and relating to claims with respect to
losses of the Borrower or such Subsidiary, whether such proceeds are payable to
the Borrower, such Subsidiary or to the Administrative Agent, net of amounts of
the type described in clauses (A), (B) and (C) of clause (a)(ii) of the
definition of “Net Cash Proceeds” with respect to the loss giving rise to
receipt of such proceeds.

“Intangible
Assets” means assets of a Person and its Subsidiaries that are classified
as intangible assets under GAAP, but excluding interests in real estate that
are classified as intangible assets in accordance with GAAP.

“Interest
Expense” means, for any period, for a Person and its Subsidiaries on a
consolidated basis, the sum of all (a) interest expense for such period
determined in accordance with GAAP (but excluding any charges resulting from
settlement of options to repurchase remarketable bonds) and (b) interest that
is capitalized in such period in accordance with GAAP.

“Interest
Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the
last day of each Interest Period applicable to such Loan and the Maturity Date;
provided, however, that if any Interest Period for a Eurodollar
Rate Loan exceeds three months, the respective dates that fall every three
months after the beginning of such Interest Period shall also be Interest Payment
Dates; and (b) as to any Base Rate Loan, the last Business Day of each calendar
quarter and the Maturity Date.

“Interest
Period” means, as to each Eurodollar Rate Loan, the period commencing on
the date such Eurodollar Rate Loan is disbursed or converted to or continued as
a Eurodollar Rate Loan and ending on the date one, two, three or six months (or
if agreed to by all Lenders, nine or twelve months) thereafter, as selected by
the Borrower in its Bridge Loan Notice; provided that:

 12
 

 

(i) any Interest Period that would otherwise end on
a day that is not a Business Day shall be extended to the next succeeding
Business Day unless such Business Day falls in another calendar month, in which
case such Interest Period shall end on the next preceding Business Day;

(ii) any Interest Period that begins on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period)
shall end on the last Business Day of the calendar month at the end of such
Interest Period; and

(iii) no Interest Period shall extend beyond the
Maturity Date.

“Internal
Control Event” means a material weakness in, or fraud that involves
management or other employees who have a significant role in, the Borrower’s
internal controls over financial reporting, in each case as described in the
Securities Laws.

“Investment”
means, as to any Person, any direct or indirect acquisition or investment by
such Person, whether by means of (a) the purchase or other acquisition of
capital stock or other securities of another Person, (b) a loan, advance or
capital contribution to, Guarantee or assumption of debt of, or purchase or
other acquisition of any other debt or equity participation or interest in,
another Person, including any partnership or joint venture interest in such
other Person and any arrangement pursuant to which the investor Guarantees
Indebtedness of such other Person, or (c) the purchase or other acquisition (in
one transaction or a series of transactions) of assets of another Person that
constitute a business unit.  For purposes
of covenant compliance, the amount of any Investment shall be the amount
actually invested, without adjustment for subsequent increases or decreases in
the value of such Investment.

“IP
Rights” has the meaning specified in Section 5.17.

“IRS”
means the United States Internal Revenue Service.

“Joinder
Agreement” means a joinder agreement substantially in the form of Exhibit
G executed and delivered by a new Guarantor in accordance with Section
6.13.

“Joint
Venture” means any Person in which the Borrower, directly or indirectly,
has an ownership interest but does not consolidate the assets or income of such
Person in preparing its consolidated financial statements.

“Laws”
means, collectively, all international, foreign, Federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all applicable
administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case
whether or not having the force of law.

“Lender”
has the meaning specified in the introductory paragraph hereto.

“Lending
Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other
office or offices as a Lender may from time to time notify the Borrower and the
Administrative Agent.

“Leverage
Ratio” means, on the last day of any fiscal quarter, the ratio of (a)
Consolidated Total Indebtedness outstanding on such date to (b) Consolidated
Total Asset Value as of such date.

 13
 

 

“Lien”
means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or
other security interest or preferential arrangement in the nature of a security
interest of any kind or nature whatsoever (including any conditional sale or
other title retention agreement, any easement, right of way or other
encumbrance on title to real property, and any financing lease having
substantially the same economic effect as any of the foregoing).

“Loan”
means an extension of credit by a Lender to the Borrower under Article II.

“Loan
Documents” means this Agreement, each Note and the Fee Letter.

“Loan Parties”
means, collectively, the Borrower and each
Guarantor.  For purposes of the
representations and warranties made pursuant to Article V on the Closing
Date, references to “Loan Party” shall exclude any Person that is or is
required to become a Loan Party immediately following the CNL Merger and the
Advisor Merger.

“Material
Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the operations, business, properties, liabilities (actual
or contingent) or condition (financial or otherwise) of the Borrower or the
Borrower and its Subsidiaries taken as a whole; (b) a material impairment of
the ability of the Borrowers to perform its obligations under any Loan Document
to which it is a party; or (c) a material adverse effect upon the legality,
validity, binding effect or enforceability against the Borrower of any Loan
Document to which it is a party.

“Material
Joint Venture” means a Joint Venture in which the Borrower has made a net
equity investment of $15,000,000 or greater. 
For purposes of this definition, the Borrower’s aggregate Investment in
a Joint Venture will be valued at (a) the aggregate amount of cash and cash
equivalents and the book value of other property contributed by the Borrower to
such Joint Venture minus (b) the aggregate amount of distributions
received by the Borrower from such Joint Venture that would be classified as a
return of capital (as opposed to a return on investment).

“Maturity
Date” means October 3, 2007.

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

“Mortgage
Lien” means any Lien that encumbers a real property owned by a Person other
than Permitted Liens.

“Multiemployer
Plan” means any employee benefit plan of the type described in Section
4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is
obligated to make contributions, or during the preceding five plan years, has
made or been obligated to make contributions.

“Net
Cash Proceeds” means:

(a)           with respect to any Disposition or
Casualty Event, the excess, if any, of (i) the sum of cash and cash
equivalents received in connection with such Disposition or Casualty Event
(including any cash received by way of deferred payment pursuant to, or by
monetization of or other cash realization upon, a note receivable or other
non-cash consideration, but only as and when so received) over (ii) the sum of
(A) the principal, interest, premiums, penalties and other amounts due under
any Indebtedness that is secured by a Lien on such asset and that is required
to be repaid in connection with such event (other than Indebtedness under the
Loan Documents), (B) the out-of-pocket expenses incurred by the Borrower
or any Subsidiary in connection with

 14
 

 

such Disposition or Casualty Event, (C) taxes reasonably estimated to
be actually payable with respect to the taxable year in which such Disposition
or Casualty Event occurred as a result of any gain recognized in connection
therewith and (D) amounts reasonably expected to be payable prior to the
Maturity Date pursuant to customary escrow arrangements, purchase price
adjustments or indemnification agreements in connection with such Disposition
(as estimated in good faith by a Responsible Officer of the applicable Loan
Party and set forth in a certificate delivered to the Administrative Agent
prior to the consummation of such Disposition); and

(b)           with respect to any debt incurrence
or Public Equity Issuance, the excess of (i) the sum of the cash and cash
equivalents received in connection with such event over (ii) the underwriting
discounts and commissions, and other out-of-pocket fees and expenses, incurred
by the Borrower and its Subsidiaries in connection with such sale.

“Net
Income” means, for any period, for a Person and its Subsidiaries on a
consolidated basis, the net income of such Person and its Subsidiaries
(excluding extraordinary gains and extraordinary losses and other non-recurring
items, including, without limitation, charges resulting from settlement of
options to repurchase remarketable bonds and other similar charges) for that
period as determined in accordance with GAAP.

“Note”
means a promissory note made by the Borrower in favor of a Lender evidencing
Loans made by such Lender, substantially in the form of Exhibit B.

“Obligations”
means all advances to, and debts, liabilities, obligations, covenants and
duties of any Loan Party arising under any Loan Document or otherwise with
respect to any Loan, whether direct or indirect (including those acquired by
assumption), absolute or contingent, due or to become due, now existing or
hereafter arising and including interest and fees that accrue after the commencement
by or against any Loan Party or any Affiliate thereof of any proceeding under
any Debtor Relief Laws naming such Person as the debtor in such proceeding,
regardless of whether such interest and fees are allowed claims in such
proceeding.

“Organization
Documents” means, (a) with respect to any corporation, the certificate or
articles of incorporation and the bylaws (or equivalent or comparable
constitutive documents with respect to any non-U.S. jurisdiction); (b) with respect
to any limited liability company, the certificate or articles of formation or
organization and operating agreement; and (c) with respect to any partnership,
joint venture, trust or other form of business entity, the partnership, joint
venture or other applicable agreement of formation or organization and any
agreement, instrument, filing or notice with respect thereto filed in connection
with its formation or organization with the applicable Governmental Authority
in the jurisdiction of its formation or organization and, if applicable, any
certificate or articles of formation or organization of such entity.

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

“Outstanding
Amount” means with respect to Loans on any date, the aggregate outstanding
principal amount thereof after giving effect to any borrowings and prepayments
or repayments occurring on such date.

“Participant”
has the meaning specified in Section 10.06(d).

 15
 

 

“Patriot
Act” has the meaning specified in Section 10.17.

“PBGC”
means the Pension Benefit Guaranty Corporation.

“Pension
Plan” means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to
Title IV of ERISA and is sponsored or maintained by the Borrower or any ERISA
Affiliate or to which the Borrower or any

ERISA Affiliate contributes or has an obligation to contribute, or in the case
of a multiple employer or other plan described in Section 4064(a) of ERISA, has
made contributions at any time during the immediately preceding five plan
years.

“Permitted
Liens” means Liens permitted under Section 7.01(c), (d), (e),
(f) and (g).

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

“Plan”
means any “employee benefit plan” (as such term is defined in Section 3(3) of
ERISA) established by the Borrower or, with respect to any such plan that is
subject to Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate.

“Platform”
has the meaning specified in Section 6.02.

“Pro
Rata Share” means (a) with respect to the EBITDA, Net Income, Interest
Expense, Total Asset Value and Unencumbered Asset Value of each Joint Venture, the
Borrower’s direct or indirect, percentage ownership interest in such Joint
Venture and (b) with respect to the Indebtedness of each Joint Venture (i) if
the Indebtedness is recourse to the Borrower or any of its Subsidiaries the
amount of such Indebtedness that is recourse to the Borrower or such Subsidiary
and (ii) if the Indebtedness is not recourse to the Borrower or any of its
Subsidiaries, the Borrower’s percentage ownership interest in such Joint
Venture.

“Public
Equity Issuance” means the issuance, sale or other disposition by the
Borrower or one if its Subsidiaries of its Equity Interests, including any Rule
144A offering or any rights, warrants or options to purchase shares of its
Equity Interests; provided that the term Public Equity Issuance shall
not include (a) the issuance or sale of Equity Interests by a Subsidiary
of the Borrower to the Borrower or another Subsidiary of the Borrower or (b)
any rights, options or Equity Interests issued pursuant to employee or director
incentive, stock option or stock repurchase plans in the ordinary course.

“Public
Lender” has the meaning specified in Section 6.02.

“Refinancing”
means the repayment of existing indebtedness of the Borrower and CNL of up to
$1,100,000,000 in connection with the Acquisitions.

“Register”
has the meaning specified in Section 10.06(c).

“Registered
Public Accounting Firm” has the meaning specified in the Securities Laws
and shall be independent of the Borrower as prescribed by the Securities Laws.

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

“Related
Parties” means, with respect to any Person, such Person’s Affiliates and
the partners, directors, officers, employees, agents and advisors of such
Person and of such Person’s Affiliates.

 16

 

“Reportable
Event” means any of the events set forth in Section 4043(c) of ERISA, other
than events for which the 30 day notice period has been waived.

“Request
for Credit Extension” means with respect to a Borrowing, conversion or
continuation of Loans, a Bridge Loan Notice.

“Requisite
Lenders” means, as of any date of determination, Lenders having more than
50% of (i) the Aggregate Commitments or (ii) the Total Outstandings, as
the case may be; provided that the Commitment of, and the portion of the
Total Outstandings held or deemed held by, any Defaulting Lender shall be
excluded for purposes of making a determination of Requisite Lenders.

“Responsible
Officer” means the chief executive officer, president, chief financial
officer, each executive vice president and senior vice president, and the
treasurer of a Loan Party.  Any document
delivered hereunder that is signed by a Responsible Officer of a Loan Party
shall be conclusively presumed to have been authorized by all necessary
corporate, partnership and/or other action on the part of the Loan Party and
such Responsible Officer shall be conclusively presumed to have acted on behalf
of the Loan Party.

“Restricted
Payment” means any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, acquisition, cancellation or termination of any such
capital stock or other Equity Interest, or on account of any return of capital
to the Borrower’s stockholders, partners or members (or the equivalent Person
thereof).

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

“Scheduled
Principal Payment” means (a) all scheduled principal payments by the
Borrower and its Subsidiaries with respect to its Consolidated Total
Indebtedness (other than payments due at final maturity of any tranche of
Indebtedness) and (b) without duplication, the Borrower’s Pro Rata Share of all
scheduled principal payments with respect to the Indebtedness (other than
payments due at final maturity of any tranche of Indebtedness) of each Material
Joint Venture, in each case without giving effect to any reduction in such
scheduled principal payments as a result of any voluntary or mandatory
prepayment with respect thereto made in the same period in which such principal
payment was scheduled to be made.

“SEC”
means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

“Secured
Debt” means that portion of Consolidated Total Indebtedness that is subject
to a Lien (other than Permitted Liens).

“Secured
Debt Ratio” means, on the last day of any fiscal quarter, the ratio of (a)
Secured Debt outstanding on such date to (b) Consolidated Total Asset Value as
of such date.

“Securities
Laws” means the Securities Act of 1933, as amended (the “Securities Act”),
the Securities Exchange Act of 1934, as amended (the “Securities Exchange
Act”), the Sarbanes-Oxley Act of 2002 and the applicable accounting and
auditing principles, rules, standards and practices promulgated, approved or
incorporated by the SEC or the PCAOB.

“SPC”
has the meaning set forth in Section 10.06(h).

 17
 

 

“Specified
Representations” has the meaning set forth in Section 4.01(a)(viii).

“Subsidiary”
of a Person means a corporation, partnership, joint venture, limited liability
company or other business entity the accounts of which are consolidated with
the accounts of the Borrower in the Borrower’s consolidated financial
statements prepared in accordance with GAAP. 
Unless otherwise specified, all references herein to a “Subsidiary”
or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the
Borrower.

“Subsidiary
Guarantors” means (a) each Subsidiary of the Borrower identified on the
signature pages hereto, and (b) each other Subsidiary of the Borrower that
subsequently joins as a Guarantor pursuant to Section 6.13, together
with their successors and permitted assigns, and “Subsidiary Guarantor”
means any one of them.

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

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

“Syndication
Agent” means UBS Securities LLC in its capacity as Syndication Agent.

“Synthetic
Lease Obligation” means the monetary obligation of a Person under a
so-called synthetic, off-balance sheet or tax retention lease.

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

“Threshold
Amount” means $50,000,000.

“Total
Asset Value” means an amount equal to (a) all assets of a Person and its
Subsidiaries as determined in accordance with GAAP plus (b) all accumulated
depreciation associated with such assets minus (c) Intangible Assets.

 18
 

 

“Total
Outstandings” means the aggregate Outstanding Amount of all Loans.

“Transactions”
means, collectively, (i) the Acquisitions, (ii) the Refinancing,
(iii) the entering into of this Agreement and the funding of the Loans,
(iv) the payment of related fees, commissions and expenses, (v) the
entry into and borrowing of not more than $2,700,000,000 under the Bank Loan
Agreement, and (vi) all transactions related thereto.

“Treasury
Management Agreement” means any treasury, depository or cash management
arrangements, services or products, including, without limitation, overdraft
services and automated clearinghouse transfers of funds.

“Type”
means, with respect to a Loan, its character as a Base Rate Loan or a Eurodollar
Rate Loan.

“Unencumbered
Asset Value” means the sum of (a) the aggregate net book value, as
determined in accordance with GAAP, of all real property of a Person that is
not subject to a Mortgage Lien plus (b) all accumulated depreciation with
respect to such real properties plus (c) unrestricted cash and cash
equivalents of such Person.

“Unfunded
Pension Liability” means the excess of a Pension Plan’s benefit liabilities
under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s
assets, determined in accordance with the assumptions used for funding the
Pension Plan pursuant to Section 412 of the Code for the applicable plan year.

“United
States” and “U.S.” mean the United States of America.

“Unsecured
Debt” means that portion of Consolidated Total Indebtedness that is not
Secured Debt.

“Unsecured
Leverage Ratio” means, on the last day of any fiscal quarter, the ratio of
(a) Unsecured Debt outstanding on such date to (b) Consolidated Unencumbered
Asset Value as of such date.

1.02        Other Interpretive Provisions.

With
reference to this Agreement and each other Loan Document, unless otherwise
specified herein or in such other Loan Document:

(a)           The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation.”  The word “will”
shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise, (i)
any definition of or reference to any agreement, instrument or other document
(including any Organization Document) shall be construed as referring to such
agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein or in any other Loan
Document), (ii) any reference herein to any Person shall be construed to include
such Person’s successors and assigns, (iii) the words “herein,” “hereof”
and “hereunder,” and words of similar import when used in any Loan
Document, shall be construed to refer to such Loan Document in its entirety and
not to any particular provision thereof, (iv) all references in a Loan Document
to Articles, Sections, Exhibits

 19
 

 

and Schedules
shall be construed to refer to Articles and Sections of, and Exhibits and
Schedules to, the Loan Document in which such references appear, (v) any
reference to any law shall include all statutory and regulatory provisions
consolidating, amending replacing or interpreting such law and any reference to
any law or regulation shall, unless otherwise specified, refer to such law or
regulation as amended, modified or supplemented from time to time, and (vi) the
words “asset” and “property” shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets
and properties, including cash, securities, accounts and contract rights.

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

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

1.03        Accounting Terms.

(a)           Generally.  All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all
financial data (including financial ratios and other financial calculations)
required to be submitted pursuant to this Agreement shall be prepared in conformity
with, GAAP applied on a consistent basis, as in effect from time to time,
applied in a manner consistent with that used in preparing the Audited
Financial Statements, except as otherwise specifically prescribed
herein.

(b)           Changes in GAAP.  If at any time any change in GAAP would
affect the computation of any financial ratio or requirement set forth in any
Loan Document, and either the Borrower or the Requisite Lenders shall so
request, the Administrative Agent, the Lenders and the Borrower shall negotiate
in good faith to amend such ratio or requirement to preserve the original
intent thereof in light of such change in GAAP (subject to the approval of the
Requisite Lenders); provided that, until so
amended, (i) such ratio or requirement shall continue to be computed in
accordance with GAAP prior to such change therein and (ii) the Borrower shall
provide to the Administrative Agent and the Lenders financial statements and
other documents required under this Agreement or as reasonably requested
hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

1.04        Rounding.

Any
financial ratios required to be maintained by the Borrower pursuant to this
Agreement shall be calculated by dividing the appropriate component by the
other component, carrying the result to one place more than the number of
places by which such ratio is expressed herein and rounding the result up or
down to the nearest number (with a rounding-up if there is no nearest number).

1.05        Times of Day.

Unless
otherwise specified, all references herein to times of day shall be references
to Eastern time (daylight or standard, as applicable).

 20
 

 

ARTICLE II

THE COMMITMENTS AND CREDIT EXTENSIONS

2.01        Loans.

Subject
to the terms and conditions set forth herein, each Lender severally agrees to
make a loan (each such loan, a “Loan”) to the Borrower on the Closing
Date in an amount not to exceed the amount of such Lender’s Commitment. The
Commitments are not revolving in nature, and amounts repaid in respect of the
Loans may not be reborrowed.  The Loans
may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein.

2.02        Borrowings, Conversions and
Continuations of Loans.

(a)           Each Borrowing, each conversion of
Loans from one Type to the other, and each continuation of Eurodollar Rate
Loans shall be made upon the Borrower’s irrevocable notice to the
Administrative Agent, which may be given by telephone.  Each such notice must be received by the
Administrative Agent not later than 12:00 Noon (i) three Business Days
prior to the requested date of any Borrowing of, conversion to or continuation
of Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans to Base
Rate Loans, and (ii) on the requested date of any Borrowing of Base Rate
Loans.  Each telephonic notice by the
Borrower pursuant to this Section 2.02(a) must be confirmed promptly by
delivery to the Administrative Agent of a written Bridge Loan Notice,
appropriately completed and signed by a Responsible Officer of the Borrower.  Each Borrowing of, conversion to or
continuation of Eurodollar Rate Loans shall be in a principal amount of
$1,000,000 or a whole multiple of $100,000 in excess thereof.  Each Borrowing of or conversion to Base Rate
Loans shall be in a principal amount of $1,000,000 or a whole multiple of
$100,000 in excess thereof.

Each
Bridge Loan Notice (whether telephonic or written) shall specify (i) whether
the Borrower is requesting a Borrowing, a conversion of Loans from one Type to
the other, or a continuation of Eurodollar Rate Loans, (ii) the requested date
of the Borrowing, conversion or continuation, as the case may be (which shall
be a Business Day), (iii) the principal amount of Loans to be borrowed,
converted or continued, (iv) the Type of Loans to be borrowed or to which
existing Loans are to be converted, and (v) if applicable, the duration of the
Interest Period with respect thereto.  If
the Borrower fails to specify a Type of Loan in a Bridge Loan Notice or if the
Borrower fails to give a timely notice requesting a conversion or continuation,
then the applicable Loans shall be made as, or converted to, Base Rate
Loans.  Any such automatic conversion to
Base Rate Loans shall be effective as of the last day of the Interest Period
then in effect with respect to the applicable Eurodollar Rate Loans.  If the Borrower requests a Borrowing of,
conversion to, or continuation of Eurodollar Rate Loans in any such Bridge Loan
Notice, but fails to specify an Interest Period, it will be deemed to have
specified an Interest Period of one month.

(b)           Following receipt of a Bridge Loan
Notice, the Administrative Agent shall promptly notify each Lender of the
amount of its Applicable Percentage of the applicable Loans, and if no timely
notice of a conversion or continuation is provided by the Borrower, the Administrative
Agent shall notify each Lender of the details of any automatic conversion to
Base Rate Loans described in the preceding subsection.  Each Lender shall make the amount of its Loan
available to the Administrative Agent in immediately available funds at the
Administrative Agent’s Office not later than 2:00 p.m. on the Business Day
specified in the applicable Bridge Loan Notice. 
Upon satisfaction of the applicable conditions set forth in Section
4.01, the Administrative Agent shall make all funds so received available
to the Borrower in like funds as received by the Administrative Agent either by
(i) crediting the account of the Borrower on the books of Bank of America with
the amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to (and reasonably acceptable to) the
Administrative Agent by the Borrower.

 21
 

 

(c)           Except as otherwise provided herein,
a Eurodollar Rate Loan may be continued or converted only on the last day of an
Interest Period for such Eurodollar Rate Loan. 
During the existence of a Default, no Loans may be requested as,
converted to or continued as Eurodollar Rate Loans without the consent of the
Requisite Lenders.

(d)           The Administrative Agent shall
promptly notify the Borrower and the Lenders of the interest rate applicable to
any Interest Period for Eurodollar Rate Loans upon determination of such
interest rate.  At any time that Base
Rate Loans are outstanding, the Administrative Agent shall notify the Borrower
and the Lenders of any change in Bank of America’s prime rate used in determining
the Base Rate promptly following the public announcement of such change.

(e)           After giving effect to all
Borrowings, all conversions of Loans from one Type to the other, and all
continuations of Loans as the same Type, there shall not be more than ten
Interest Periods in effect with respect to all Loans hereunder.

2.03        [Intentionally Omitted].

2.04        [Intentionally Omitted].

2.05        [Intentionally Omitted].

2.06        Prepayments.

(a)           The Borrower may, upon notice to the
Administrative Agent, at any time or from time to time, voluntarily prepay
Loans in whole or in part without premium or penalty; provided that (i)
such notice must be received by the Administrative Agent not later than
11:00 a.m. (A) three Business Days prior to any date of prepayment of
Eurodollar Rate Loans and (B) on the date of prepayment of Base Rate Loans;
(ii) any prepayment of Eurodollar Rate Loans shall be in a principal amount of
$1,000,000 or a whole multiple of $100,000 in excess thereof; and (iii) any prepayment
of Base Rate Loans shall be in a principal amount of $1,000,000 or a whole multiple
of $100,000 in excess thereof or, in each case, if less, the entire principal
amount thereof then outstanding.  Each
such notice shall specify the date and amount of such prepayment and the
Type(s) of Loans to be prepaid.  The
Administrative Agent will promptly notify each Lender of its receipt of each
such notice, and of the amount of such Lender’s Applicable Percentage of such
prepayment.  If such notice is given by
the Borrower, the Borrower shall make such prepayment and the payment amount
specified in such notice shall be due and payable on the date specified
therein.  Any prepayment of a Eurodollar
Rate Loan shall be accompanied by all accrued interest on the amount prepaid,
together with any additional amounts required pursuant to Section 3.05.  Each prepayment shall be made ratably among
the Lenders in accordance with the Applicable Percentages.

(b)           [Intentionally Omitted].

(c)           [Intentionally Omitted].

(d)           [Intentionally Omitted].

(e)           Within three Business Days after any
Net Cash Proceeds are received by the Borrower or any Subsidiary in respect of
(i) any Disposition; or (ii) any Casualty Event, the Borrower shall
prepay the Loans plus accrued and unpaid interest, fees and all other sums with
respect to the principal amount so prepaid, in an aggregate amount equal to
100% of such Net Cash Proceeds less any portion of such proceeds that must be
distributed to maintain the Borrower’s status as a REIT.

 22
 

 

(f)            Within three Business Days after any
Net Cash Proceeds are received by the Borrower or any Subsidiary in respect of
any issuance of debt after the Closing Date (other than an issuance of debt
(i) in an aggregate amount up to $1,000,000 per annum for issuances of
debt not covered by the following clauses (ii) and (iii);
(ii) to refinance existing purchase money financing, up to the amount then
outstanding under such existing financing, or (iii) to provide mortgage
financing for the acquisition of new properties up to an aggregate amount in
any 12-month period of $50,000,000), the Borrower shall prepay Loans
plus accrued and unpaid interest, fees and all other sums with respect to the
principal amount so prepaid, in an aggregate amount equal to 100% of such Net
Cash Proceeds.

(g)           Within three Business Days after any
Net Cash Proceeds are received by the Borrower or any Subsidiary in respect of
any Public Equity Issuance or equity contribution after the Closing Date, the
Borrower shall prepay Loans plus accrued and unpaid interest, fees and all
other sums with respect to the principal amount so prepaid, in an aggregate
amount equal to 100% of such Net Cash Proceeds.

2.07        Termination or Reduction of
Commitments.

Unless
previously terminated, the Commitments will terminate on the earliest to occur
of (A) the Closing Date, immediately after the closing hereunder; (B) October
31, 2006, if the Closing Date has not occurred on or before such date; and (C)
the termination of the CNL Merger Agreement.

2.08        Repayment.

(a)           The Borrower shall repay to the
Lenders on the Maturity Date, unless accelerated sooner pursuant to Section
8.02, the entire outstanding principal balance of all Loans together with
accrued but unpaid interest, fees and all other sums with respect thereto.

(b)           [Intentionally Omitted].

(c)           [Intentionally Omitted].

(d)           [Intentionally Omitted].

2.09        Interest.

(a)           Applicable Interest.  Subject to the provisions of subsection (b)
below, (i) each Eurodollar Rate Loan shall bear interest on the outstanding
principal amount thereof for each Interest Period at a rate per annum equal to
the Eurodollar Rate for such Interest Period plus the Applicable Rate and (ii)
each Base Rate Loan shall bear interest on the outstanding principal amount
thereof from the applicable borrowing date at a rate per annum equal to the
Base Rate plus the Applicable Rate.

(b)           Default Interest.

(i)      If any amount of principal of any Loan is
not paid when due (without regard to any applicable grace periods), whether at
stated maturity, by acceleration or otherwise, such amount shall thereafter
bear interest at a fluctuating interest rate per annum at all times equal to
the Default Rate to the fullest extent permitted by applicable Laws.

 23
 

 

(ii)     If any amount (other than principal of any
Loan) payable by the Borrower under any Loan Document is not paid when due
(without regard to any applicable grace periods), whether at stated maturity,
by acceleration or otherwise, then upon the request of the Requisite Lenders,
such amount shall thereafter bear interest at a fluctuating interest rate per
annum at all times equal to the Default Rate to the fullest extent permitted by
applicable Laws.

(iii)    Upon the request of the Requisite Lenders,
while any Event of Default exists, the Borrower shall pay interest on the
principal amount of all outstanding Obligations hereunder at a fluctuating
interest rate per annum at all times equal to the Default Rate to the fullest
extent permitted by applicable Laws.

(iv)    Accrued and unpaid interest on past due
amounts (including interest on past due interest) shall be due and payable upon
demand.

(c)           Interest Payment Date.  Interest on each Loan shall be due and
payable in arrears on each Interest Payment Date applicable thereto and at such
other times as may be specified herein. 
Interest hereunder shall be due and payable in accordance with the terms
hereof before and after judgment, and before and after the commencement of any
proceeding under any Debtor Relief Law.

2.10        Fees.

(a)           [Intentionally Omitted].

(b)           Other Fees.

(i)      The
Borrower shall pay to the Arrangers and the Administrative Agent for their own
respective accounts fees in the amounts and at the times specified in the Fee
Letter.  Such fees shall be fully earned
when paid and shall not be refundable for any reason whatsoever.

(ii)     The
Borrower shall pay to the Lenders such fees as shall have been separately
agreed upon in writing in the amounts and at the times so specified.  Such fees shall be fully earned when paid and
shall not be refundable for any reason whatsoever.

2.11        Computation of Interest and Fees.

All
computations of interest for Base Rate Loans when the Base Rate is determined
by Bank of America’s “prime rate” shall be made on the basis of a year of 365
or 366 days, as the case may be, and actual days elapsed.  All other computations of fees and interest
shall be made on the basis of a 360-day year and actual days elapsed (which
results in more fees or interest, as applicable, being paid than if computed on
the basis of a 365-day year).  Interest
shall accrue on each Loan for the day on which the Loan is made, and shall not
accrue on a Loan, or any portion thereof, for the day on which the Loan or such
portion is paid, provided that any Loan that is repaid on the same day
on which it is made shall, subject to Section 2.13(a), bear interest for
one day.  Each determination by the
Administrative Agent of an interest rate or fee hereunder shall be conclusive
and binding for all purposes, absent manifest error.

2.12        Evidence of Debt.

(a)           The Credit Extensions made by each
Lender shall be evidenced by one or more accounts or records maintained by such
Lender and by the Administrative Agent in the ordinary course of business.  The accounts or records maintained by the
Administrative Agent and each Lender shall be conclusive absent manifest error
of the amount of the Credit Extensions made by the Lenders to the Borrower and
the

 24
 

 

interest and payments thereon.  Any failure to so record or any error in
doing so shall not, however, limit or otherwise affect the obligation of the
Borrower hereunder to pay any amount owing with respect to the
Obligations.  In the event of any
conflict between the accounts and records maintained by any Lender and the accounts
and records of the Administrative Agent in respect of such matters, the
accounts and records of the Administrative Agent shall control in the absence
of manifest error.  Upon the request of
any Lender made through the Administrative Agent, the Borrower shall execute
and deliver to such Lender (through the Administrative Agent) a Note, which
shall evidence such Lender’s Loans in addition to such accounts or
records.  Each Lender may attach schedules
to its Note and endorse thereon the date, Type (if applicable), amount and
maturity of its Loans and payments with respect thereto.

(b)           [Intentionally Omitted].

2.13        Payments Generally; Administrative
Agent’s Clawback.

(a)           General.  All payments to be made by the Borrower shall
be made without condition or deduction for any counterclaim, defense,
recoupment or setoff.  Except as
otherwise expressly provided herein, all payments by the Borrower hereunder
shall be made to the Administrative Agent, for the account of the respective
Lenders to which such payment is owed, at the Administrative Agent’s Office in
Dollars and in immediately available funds not later than 2:00 p.m. on the date
specified herein.  The Administrative
Agent will promptly distribute to each Lender its Applicable Percentage (or
other applicable share as provided herein) of such payment in like funds as
received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative
Agent after 2:00 p.m. shall be deemed received on the next succeeding Business
Day and any applicable interest or fee shall continue to accrue.  If any payment to be made by the Borrower
shall come due on a day other than a Business Day, payment shall be made on the
next following Business Day, and such extension of time shall be reflected in
computing interest or fees, as the case may be.

(b)           (i) 
Funding by Lenders; Presumption by Administrative Agent.  Unless the Administrative Agent shall have
received notice from a Lender prior to the proposed date of any Borrowing of
Eurodollar Rate Loans (or, in the case of any Borrowing of Base Rate Loans,
prior to 12:00 noon on the date of such Borrowing) that such Lender will not
make available to the Administrative Agent such Lender’s share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with Section 2.02 (or, in the
case of a Borrowing of Base Rate Loans, that such Lender has made such share
available in accordance with and at the time required by Section 2.02)
and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount.  In such event, if
a Lender has not in fact made its share of the applicable Borrowing available
to the Administrative Agent, then the applicable Lender and the Borrower
severally agree to pay to the Administrative Agent forthwith on demand such
corresponding amount in immediately available funds with interest thereon, for
each day from and including the date such amount is made available to the
Borrower to but excluding the date of payment to the Administrative Agent, at
(A) in the case of a payment to be made by such Lender, the greater of the
Federal Funds Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation, plus any
administrative, processing or similar fees customarily charged by the
Administrative Agent in connection with the foregoing, and (B) in the case of a
payment to be made by the Borrower, the interest rate applicable to Base Rate
Loans.  If the Borrower and such Lender
shall pay such interest to the Administrative Agent for the same or an
overlapping period, the Administrative Agent shall promptly remit to the
Borrower the amount of such interest paid by the Borrower for such period.  If such Lender pays its share of the
applicable Borrowing to the Administrative Agent, then the amount so paid shall
constitute such Lender’s Loan included in such Borrowing.  Any payment by the Borrower shall be without
prejudice to any claim the Borrower may have against a Lender that shall have
failed to make such payment to the Administrative Agent.

 25
 

 

(ii)     Payments by the Borrower; Presumptions
by Administrative Agent.  Unless the
Administrative Agent shall have received notice from the Borrower prior to the
date on which any payment is due to the Administrative Agent for the account of
the Lenders hereunder that the Borrower will not make such payment, the
Administrative Agent may assume that the Borrower has made such payment on such
date in accordance herewith and may, in reliance upon such assumption, distribute
to the Lenders the amount due.  In such
event, if the Borrower has not in fact made such payment, then each of the
Lenders severally agrees to repay to the Administrative Agent forthwith on
demand the amount so distributed to such Lender in immediately available funds
with interest thereon, for each day from and including the date such amount is
distributed to it to but excluding the date of payment to the Administrative
Agent, at the greater of the Federal Funds Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation.

A
notice of the Administrative Agent to any Lender or the Borrower with respect
to any amount owing under this subsection (b) shall be conclusive, absent
manifest error.

(c)           Failure to Satisfy Conditions
Precedent.  If any Lender makes
available to the Administrative Agent funds for any Loan to be made by such
Lender as provided in the foregoing provisions of this Article II, and
such funds are not made available to the Borrower by the Administrative Agent because
the conditions to the applicable Credit Extension set forth in Article IV
are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from
such Lender) to such Lender, without interest.

(d)           Obligations of Lenders Several.  The obligations of the Lenders hereunder to
make Loans and to make payments pursuant to Section 10.04(c) are several
and not joint.  The failure of any Lender
to make any Loan, to fund any such participation or to make any payment under Section
10.04(c) on any date required hereunder shall not relieve any other Lender
of its corresponding obligation to do so on such date, and no Lender shall be
responsible for the failure of any other Lender to so make its Loan, to
purchase its participation or to make its payment under Section 10.04(c).

(e)           Funding Source.  Nothing herein shall be deemed to obligate
any Lender to obtain the funds for any Loan in any particular place or manner
or to constitute a representation by any Lender that it has obtained or will
obtain the funds for any Loan in any particular place or manner.

2.14        Sharing of Payments by Lenders.

If
any Lender shall, by exercising any right of setoff or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of
the Loans made by it resulting in such Lender’s receiving payment of a
proportion of the aggregate amount of such Loans or participations and accrued
interest thereon greater than its pro  rata share thereof as
provided herein, then the Lender receiving such greater proportion shall (a)
notify the Administrative Agent of such fact, and (b) purchase (for cash at
face value) participations in the Loans of the other Lenders, or make such
other adjustments as shall be equitable, so that the benefit of all such
payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective Loans
and other amounts owing them, provided that:

(i)      if
any such participations or subparticipations are purchased and all or any portion
of the payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the
extent of such recovery, without interest; and

 26
 

 

(ii)     the
provisions of this Section shall not be construed to apply to (x) any payment
made by the Borrower pursuant to and in accordance with the express terms of
this Agreement or (y) any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans to any assignee or
participant, other than to the Borrower or any Subsidiary thereof (as to which
the provisions of this Section shall apply).

Each
Loan Party consents to the foregoing and agrees, to the extent it may effectively
do so under applicable law, that any Lender acquiring a participation pursuant
to the foregoing arrangements may exercise against such Loan Party rights of
setoff and counterclaim with respect to such participation as fully as if such
Lender were a direct creditor of such Loan Party in the amount of such
participation.

2.15        [Intentionally Omitted].

2.16        [Intentionally Omitted].

ARTICLE III

TAXES, YIELD PROTECTION AND ILLEGALITY

3.01        Taxes.

(a)           Payments Free of Taxes.  Any and all payments by or on account of any
obligation of the Loan Parties hereunder or under any other Loan Document shall
be made free and clear of and without reduction or withholding for any
Indemnified Taxes or Other Taxes, provided that if the Loan Parties
shall be required by applicable law to deduct any Indemnified Taxes (including
any Other Taxes) from such payments, then (i) the sum payable shall be
increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section) the
Administrative Agent or Lender, as the case may be, receives an amount equal to
the sum it would have received had no such deductions been made, (ii) the
applicable Loan Party shall make such deductions and (iii) the applicable Loan
Party shall timely pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

(b)           Payment of Other Taxes by the
Borrower.  Without limiting the
provisions of subsection (a) above, the Borrower shall timely pay any Other
Taxes to the relevant Governmental Authority in accordance with applicable law.

(c)           Indemnification by the Borrower.  The Borrower shall indemnify the Administrative
Agent and each Lender, within 10 days after demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other
Taxes imposed or asserted on or attributable to amounts payable under this
Section) paid by the Administrative Agent or such Lender, as the case may be,
and any penalties, interest and reasonable expenses arising therefrom or with
respect thereto, whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental
Authority.  A certificate as to the
amount of such payment delivered to the Borrower by a Lender (with a copy to
the Administrative Agent), or by the Administrative Agent on its own behalf or
on behalf of a Lender, shall be conclusive absent manifest error.

(d)           Evidence of Payments.  As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority,
the Borrower shall deliver to the Administrative Agent the original or a
certified copy of a receipt issued by such Governmental Authority evidencing
such payment, a copy of the return reporting such payment or other evidence of
such payment reasonably satisfactory to the Administrative Agent.

 27
 

 

(e)           Status of Lenders.  Any Foreign Lender that is entitled to an
exemption from or reduction of withholding tax under the law of the
jurisdiction in which the Borrower is resident for tax purposes, or any treaty
to which such jurisdiction is a party, with respect to payments hereunder or
under any other Loan Document shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law or
reasonably requested by the Borrower or the Administrative Agent, such properly
completed and executed documentation prescribed by applicable law as will
permit such payments to be made without withholding or at a reduced rate of
withholding.  In addition, any Lender, if
requested by the Borrower or the Administrative Agent, shall deliver such other
documentation prescribed by applicable law or reasonably requested by the
Borrower or the Administrative Agent as will enable the Borrower or the
Administrative Agent to determine whether or not such Lender is subject to
backup withholding or information reporting requirements.

Without
limiting the generality of the foregoing, in the event that the Borrower is
resident for tax purposes in the United States, any Foreign Lender shall
deliver to the Borrower and the Administrative Agent (in such number of copies
as shall be requested by the recipient) on or prior to the date on which such
Foreign Lender becomes a Lender under this Agreement (and from time to time
thereafter upon the request of the Borrower or the Administrative Agent, but
only if such Foreign Lender is legally entitled to do so), whichever of the
following is applicable:

(i)      duly
completed copies of Internal Revenue Service Form W-8BEN claiming eligibility
for benefits of an income tax treaty to which the United States is a party,

(ii)     duly
completed copies of Internal Revenue Service Form W-8ECI,

(iii)    in
the case of a Foreign Lender claiming the benefits of the exemption for portfolio
interest under section 881(c) of the Code, (x) a certificate to the effect that
such Foreign Lender is not (A) a “bank” within the meaning of section
881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrower within
the meaning of section 881(c)(3)(B) of the Code, or (C) a “controlled foreign
corporation” described in section 881(c)(3)(C) of the Code and (y) duly
completed copies of Internal Revenue Service Form W-8BEN, or

(iv)    any
other form prescribed by applicable law as a basis for claiming exemption from
or a reduction in United States Federal withholding tax duly completed together
with such supplementary documentation as may be prescribed by applicable law to
permit the Borrower to determine the withholding or deduction required to be
made.

(f)            Treatment of Certain Refunds.  If the Administrative Agent or any Lender determines,
in its sole discretion, that it has received a refund of any Taxes or Other
Taxes as to which it has been indemnified by the Borrower or with respect to
which the Borrower has paid additional amounts pursuant to this Section, it
shall pay to the Borrower an amount equal to such refund (but only to the extent
of indemnity payments made, or additional amounts paid, by the Borrower under
this Section with respect to the Taxes or Other Taxes giving rise to such
refund), net of all out-of-pocket expenses of the Administrative Agent or such
Lender, as the case may be, and without interest (other than any interest paid by
the relevant Governmental Authority with respect to such refund), provided
that the Borrower, upon the request of the Administrative Agent or such Lender,
agrees to repay the amount paid over to the Borrower (plus any penalties,
interest or other charges imposed by the relevant Governmental Authority) to
the Administrative Agent or such Lender in the event the Administrative Agent
or such Lender is required to repay such refund to such Governmental
Authority.  This subsection shall not be
construed to require the Administrative Agent or any Lender to make available
its tax returns (or any other information relating to its taxes that it deems
confidential) to the Borrower or any other Person.

 28
 

 

3.02        Illegality.

If
any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its
applicable Lending Office to make, maintain or fund Eurodollar Rate Loans, or
to determine or charge interest rates based upon the Eurodollar Rate, or any
Governmental Authority has imposed material restrictions on the authority of
such Lender to purchase or sell, or to take deposits of, Dollars in the London
interbank market, then, on notice thereof by such Lender to the Borrower
through the Administrative Agent, any obligation of such Lender to make or
continue Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate
Loans shall be suspended until such Lender notifies the Administrative Agent
and the Borrower that the circumstances giving rise to such determination no
longer exist.  Upon receipt of such
notice, the Borrower shall, upon demand from such Lender (with a copy to the
Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate
Loans of such Lender to Base Rate Loans, either on the last day of the Interest
Period therefor, if such Lender may lawfully continue to maintain such
Eurodollar Rate Loans to such day, or immediately, if such Lender may not
lawfully continue to maintain such Eurodollar Rate Loans.  Upon any such prepayment or conversion, the
Borrower shall also pay accrued interest on the amount so prepaid or converted.

3.03        Inability to Determine Rates.

If
the Requisite Lenders determine that for any reason in connection with any
request for a Eurodollar Rate Loan or a conversion to or continuation thereof
that (a) Dollar deposits are not being offered to banks in the London interbank
eurodollar market for the applicable amount and Interest Period of such
Eurodollar Rate Loan, (b) adequate and reasonable means do not exist for
determining the Eurodollar Rate for any requested Interest Period with respect
to a proposed Eurodollar Rate Loan, or (c) the Eurodollar Rate for any
requested Interest Period with respect to a proposed Eurodollar Rate Loan does
not adequately and fairly reflect the cost to such Lenders of funding such
Loan, the Administrative Agent will promptly so notify the Borrower and each
Lender.  Thereafter, the obligation of
the Lenders to make or maintain Eurodollar Rate Loans shall be suspended until
the Administrative Agent (upon the instruction of the Requisite Lenders)
revokes such notice.  Upon receipt of
such notice, the Borrower may revoke any pending request for a Borrowing of,
conversion to or continuation of Eurodollar Rate Loans or, failing that, will
be deemed to have converted such request into a request for a Borrowing of Base
Rate Loans in the amount specified therein.

3.04        Increased Costs; Reserves on
Eurodollar Rate Loans.

(a)           Increased Costs Generally.  If any Change in Law shall:

(i)      impose,
modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for
the account of, or credit extended or participated in by, any Lender (except
any reserve requirement contemplated by Section 3.04(e));

(ii)     subject
any Lender to any tax of any kind whatsoever with respect to this Agreement,
any Eurodollar Loan made by it or change the basis of taxation of payments to
such Lender in respect thereof (except for Indemnified Taxes or Other Taxes
covered by Section 3.01 and the imposition of, or any change in the rate
of, any Excluded Tax payable by such Lender); or

(iii)    impose
on any Lender or the London interbank market any other condition, cost or
expense affecting this Agreement or Eurodollar Loans made by such Lender or
participation therein;

 29
 

 

and
the result of any of the foregoing shall be to increase the cost to such Lender
of making or maintaining any Eurodollar Loan (or of maintaining its obligation
to make any such Loan) or to reduce the amount of any sum received or
receivable by such Lender hereunder (whether of principal, interest or any
other amount) then, upon request of such Lender, the Borrower will pay to such
Lender such additional amount or amounts as will compensate such Lender, as the
case may be, for such additional costs incurred or reduction suffered.

(b)           Capital Requirements.  If any Lender determines that any Change in
Law affecting such Lender or any Lending Office of such Lender or such Lender’s
holding company, if any, regarding capital requirements has or would have the
effect of reducing the rate of return on such Lender’s capital or on the
capital of such Lender’s holding company, if any, as a consequence of this
Agreement, the Commitments of such Lender or the Loans made by such Lender to a
level below that which such Lender or such Lender’s holding company could have
achieved but for such Change in Law (taking into consideration such Lender’s
policies and the policies of such Lender’s holding company with respect to
capital adequacy), then from time to time the Borrower will pay to such Lender
such additional amount or amounts as will compensate such Lender or such Lender’s
holding company for any such reduction suffered.

(c)           Certificates for Reimbursement.  A certificate of a Lender setting forth the
amount or amounts necessary to compensate such Lender or its holding company,
as the case may be, as specified in subsection (a) or (b) of this Section and
delivered to the Borrower, in detail sufficient to enable the Borrower to
verify the computation thereof, shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount
shown as due on any such certificate within 10 days after receipt thereof.

(d)           Delay in Requests.  Failure or delay on the part of any Lender to
demand compensation pursuant to the foregoing provisions of this Section shall
not constitute a waiver of such Lender’s right to demand such compensation, provided
that the Borrower shall not be required to compensate a Lender pursuant to the
foregoing provisions of this Section for any increased costs incurred or
reductions suffered more than nine months prior to the date that such Lender
notifies the Borrower of the Change in Law giving rise to such increased costs
or reductions and of such Lender’s intention to claim compensation therefor
(except that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the nine month period referred to above shall
be extended to include the period of retroactive effect thereof).

(e)           Reserves on Eurodollar Rate Loans.  The Borrower shall pay to each Lender, as
long as such Lender shall be required to maintain reserves with respect to
liabilities or assets consisting of or including Eurocurrency funds or deposits
(currently known as “Eurocurrency liabilities”), additional interest on the
unpaid principal amount of each Eurodollar Rate Loan equal to the actual costs
of such reserves allocated to such Loan by such Lender (as determined by such
Lender in good faith, which determination shall be conclusive), which shall be
due and payable on each date on which interest is payable on such Loan, provided
the Borrower shall have received at least 10 days’ prior notice (with a copy to
the Administrative Agent) of such additional interest from such Lender.  If a Lender fails to give notice 10 days
prior to the relevant Interest Payment Date, such additional interest shall be
due and payable 10 days from receipt of such notice.

3.05        Compensation for Losses.

Upon
demand of any Lender (with a copy to the Administrative Agent) from time to
time, the Borrower shall promptly compensate such Lender for and hold such
Lender harmless from any loss, cost or expense (other than loss of anticipated
profits) incurred by it as a result of:

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(a)           any continuation, conversion, payment
or prepayment of any Loan other than a Base Rate Loan on a day other than the
last day of the Interest Period for such Loan (whether voluntary, mandatory,
automatic, by reason of acceleration, or otherwise);

(b)           any failure by the Borrower (for a
reason other than the failure of such Lender to make a Loan) to prepay, borrow,
continue or convert any Loan other than a Base Rate Loan on the date or in the
amount notified by the Borrower; or

(c)           any assignment of a Eurodollar Rate
Loan on a day other than the last day of the Interest Period therefor as a
result of a request by the Borrower pursuant to Section 10.13.

The Borrower shall also pay any customary administrative fees charged
by such Lender in connection with the foregoing.

For
purposes of calculating amounts payable by the Borrower to the Lenders under
this Section 3.05, each Lender shall be deemed to have funded each
Eurodollar Rate Loan made by it at the Eurodollar Rate for such Loan by a
matching deposit or other borrowing in the London interbank eurodollar market
for a comparable amount and for a comparable period, whether or not such Eurodollar
Rate Loan was in fact so funded.

3.06        Mitigation Obligations; Replacement
of Lenders.

(a)           Designation of a Different Lending
Office.  If any Lender requests
compensation under Section 3.04, or the Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 3.01, or if any Lender gives a notice
pursuant to Section 3.02, then such Lender shall use reasonable efforts
to designate a different Lending Office for funding or booking its Loans
hereunder or to assign its rights and obligations hereunder to another of its
offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant
to Section 3.01 or 3.04, as the case may be, in the future, or
eliminate the need for the notice pursuant to Section 3.02, as applicable,
and (ii) in each case, would not subject such Lender to any unreimbursed cost
or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any
such designation or assignment.

(b)           Replacement of Lenders.  If any Lender requests compensation under Section
3.04, or if the Borrower is required to pay any additional amount to any
Lender or any Governmental Authority for the account of any Lender pursuant to Section
3.01, the Borrower may replace such Lender in accordance with Section
10.13.

3.07        Survival.

All
of the Borrower’s obligations under this Article III shall survive
termination of the Commitments and repayment of all other Obligations
hereunder.

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ARTICLE IV

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

4.01        Conditions of Initial Credit
Extension.

The
effectiveness of this Agreement and the obligation of each Lender to make its
Credit Extension hereunder are subject to satisfaction of the following
conditions precedent:

(a)           The Administrative Agent’s receipt of
the following, each of which shall be originals or telecopies (followed
promptly by originals) unless otherwise specified, each properly executed by a
Responsible Officer of the Borrower, each dated the Closing Date (or, in the
case of certificates of governmental officials, a recent date before the
Closing Date) and each in form and substance satisfactory to the Administrative
Agent and each of the Lenders:

(i)      executed counterparts,
sufficient in number for distribution to the Administrative Agent, each Lender
and the Borrower, of this Agreement, executed and delivered by the
Administrative Agent, the Borrower and each Lender listed on Schedule 2.01;

(ii)     a Note executed by the
Borrower in favor of each Lender requesting a Note;

(iii)    such certificates of
resolutions or other action, incumbency certificates and/or other certificates
of Responsible Officers of the Borrower and each Guarantor as the
Administrative Agent may require evidencing the identity, authority and
capacity of each Responsible Officer thereof authorized to act as a Responsible
Officer in connection with this Agreement and the other Loan Documents to which
the Borrower and each Guarantor are a party;

(iv)    such documents and
certifications as the Administrative Agent may reasonably require to evidence
that the Borrower and each Guarantor are duly organized or formed, and that the
Borrower and each Guarantor are validly existing, in good standing and
qualified to engage in business in its state of organization and in each
jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification, except to the extent that
failure to do so could not reasonably be expected to have a Material Adverse Effect;

(v)     a favorable opinion of
Gibson Dunn & Crutcher LLP, counsel to the Borrower, addressed to the
Administrative Agent and each Lender, as to the matters set forth in Exhibit
F and such other matters concerning the Borrower and each Guarantor and the
Loan Documents as the Requisite Lenders may reasonably request;

(vi)    a certificate of a
Responsible Officer of the Borrower and each Guarantor either (A) attaching
copies of all consents, licenses and approvals required in connection with the
execution, delivery and performance by the Borrower and each Guarantor and the
validity against the Borrower and each Guarantor of the Loan Documents to which
it is a party, and such consents, licenses and approvals shall be in full force
and effect, or (B) stating that no such consents, licenses or approvals
are so required;

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(vii)   a certificate signed by a
Responsible Officer of the Borrower certifying (A) that the conditions
specified in Sections 4.01(h) and (i) have been satisfied
(other than as to the Acquired Business); (B) that there has been no event
or circumstance since December 31, 2005 that has had or could be
reasonably expected to have, either individually or in the aggregate, a Closing
Date Material Adverse Effect and (C) the current Debt Ratings;

(viii)  a certificate signed by a
Responsible Officer of the Borrower certifying that the representations and
warranties relating to the Acquired Business set forth in Sections 5.01,
5.02, 5.04, 5.14 and 5.18 (the “Specified
Representations”) are true and correct on and as of the Closing Date,
except to the extent that such representations and warranties specifically
refer to an earlier date, in which case they are true and correct as of such earlier
date;

(ix)    a duly completed
Compliance Certificate signed by a Responsible Officer of the Borrower
demonstrating compliance with Section 7.10 on June 30, 2006, after
giving effect to the Transactions;

(x)     evidence that the Existing
Credit Agreement and the Existing CNL Credit Agreement have been or concurrently
with the Closing Date are being terminated and all Liens securing obligations
under the Existing Credit Agreement and the Existing CNL Credit Agreement, if
any, have been or concurrently with the Closing Date are being released; and

(xi)    such other assurances,
certificates, documents, consents or opinions as the Administrative Agent or
the Requisite Lenders reasonably may require.

(b)           Any fees required to be paid on or
before the Closing Date shall have been paid.

(c)           Unless waived by the Administrative
Agent, the Borrower shall have paid all fees, charges and disbursements of
counsel to the Administrative Agent to the extent invoiced prior to or on the
Closing Date, plus such additional amounts of such fees, charges and disbursements
as shall constitute its reasonable estimate of such fees, charges and
disbursements incurred or to be incurred by it through the closing proceedings
(provided that such estimate shall not thereafter preclude a final settling
of accounts between the Borrower and the Administrative Agent).

(d)           The Acquisitions and the other
Transactions shall be consummated in accordance with the Acquisition Agreements
and the other documentation related to the Acquisitions and each of the other
Transactions, each as in effect on the date hereof (collectively, the “Acquisition
Documents”) without waiver or amendment thereof that is materially adverse
to the Lenders unless consented to by Bank of America, N.A., and UBS Loan
Finance LLC.

(e)           The Borrower shall have received
gross proceeds of not more than $2,700,000,000 from borrowings under the Bank
Loan Agreement, such Bank Loan Agreement to be in form and substance
satisfactory to Bank of America, N.A., and UBS Loan Finance LLC, and to provide
for (A) a revolving credit facility in favor of the Borrower of not less than
$1,000,000,000 (of which not more than $650,000,000 will be drawn or advanced
in the form of letters of credit at the Closing Date) and (B) a term loan
facility in favor of the Borrower of $1,700,000,000, which shall be fully drawn
at the Closing Date.

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(f)            There shall not have occurred any
Closing Date Material Adverse Effect since December 31, 2005.

(g)           The Borrower and each of the
Guarantors shall have provided the documentation and other information to the
Lenders that is required by regulatory authorities under applicable “know your
customer” and anti-money-laundering rules and regulations, including, without
limitation, the Patriot Act.

(h)           The representations and warranties of
the Borrower contained in Article V or any other Loan Document, or which
are contained in any document furnished at any time under or in connection
herewith or therewith, shall be true and correct on and as of the date hereof,
except to the extent that such representations and warranties specifically
refer to an earlier date, in which case they shall be true and correct as of
such earlier date, and except that for purposes of this Section 4.01,
the representations and warranties contained in subsections (a) and (b) of Section
5.05 shall be deemed to refer to the most recent statements furnished
pursuant to clauses (a) and (b), respectively, of Section 6.01.

(i)            No Default shall exist, or would
result from such proposed Credit Extension or from the application of the
proceeds thereof.

(j)            The Administrative Agent shall have
received a Request for Credit Extension in accordance with the requirements
hereof.

Without
limiting the generality of the provisions of Section 9.04, for purposes
of determining compliance with the conditions specified in this Section 4.01,
each Lender that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, (i) this Agreement and each
other document to which it is a party or which it has reviewed or (ii) any
other matter required thereunder to be consented to or approved by or
acceptable or satisfactory to a Lender unless the Administrative Agent shall
have received notice from such Lender prior to the proposed Closing Date
specifying its objection thereto.

Each
Request for Credit Extension (other than a Bridge Loan Notice requesting only a
conversion of Loans to the other Type or a continuation of Eurodollar Rate
Loans) submitted by the Borrower shall be deemed to be a representation and
warranty that the conditions specified in Sections 4.01(h) and (i)
have been satisfied on and as of the date of the Credit Extension.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

The
Borrower represents and warrants to the Administrative Agent and the Lenders
that:

5.01        Existence, Qualification and Power;
Compliance with Laws.

The
Borrower and each of its Subsidiaries (a) is duly organized or formed, validly
existing and in good standing under the Laws of the jurisdiction of its
incorporation or organization, (b) has all requisite power and authority and
all requisite governmental licenses, authorizations, consents and approvals to
(i) own its assets and carry on its business and (ii) execute, deliver and
perform its obligations under the Loan Documents to which it is a party, (c) is
duly qualified and is licensed and in good standing under the Laws of each
jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification or license, and (d) is in
compliance with all Laws; except in each case referred to in clause (b)(i), (c)
or (d), to the extent that failure to do so could not reasonably be expected to
have a Material Adverse Effect.

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5.02        Authorization; No Contravention.

The
execution, delivery and performance by the applicable Loan Parties of each Loan
Document to which the applicable Loan Parties are parties, have been duly
authorized by all necessary corporate or other organizational action, and do
not and will not (a) contravene the terms of any of the applicable Loan Parties’
Organization Documents; (b) conflict with or result in any breach or
contravention of, or the creation of any Lien under, or require any payment to
be made under (i) any Contractual Obligation to which the applicable Loan
Parties are parties or affecting the applicable Loan Parties or the properties
of the Borrower or any of its Subsidiaries or (ii) any order, injunction, writ
or decree of any Governmental Authority or any arbitral award to which the
applicable Loan Parties or their property is subject; or (c) violate any
Law.  The applicable Loan Parties and
each Subsidiary thereof are in compliance with all Contractual Obligations referred
to in clause (b)(i), except to the extent that failure to do so could not reasonably
be expected to have a Material Adverse Effect.

5.03        Governmental Authorization; Other
Consents.

No
approval, consent, exemption, authorization, or other action by, or notice to,
or filing with, any Governmental Authority or any other Person is necessary or
required in connection with the execution, delivery or performance by, or
enforcement against, the Loan Parties of this Agreement or any other Loan
Document.

5.04        Binding Effect.

This
Agreement has been, and each other Loan Document, when delivered hereunder,
will have been, duly executed and delivered by the Loan Parties.  This Agreement constitutes, and each other
Loan Document when so delivered will constitute, a legal, valid and binding
obligation of the Loan Parties, enforceable against the Loan Parties in
accordance with its terms.

5.05        Financial Statements; No Material
Adverse Effect.

(a)           The Audited Financial Statements (i)
were prepared in accordance with GAAP consistently applied throughout the
period covered thereby, except as otherwise expressly noted therein; (ii)
fairly present the financial condition of the Borrower and its Subsidiaries as
of the date thereof and their results of operations for the period covered
thereby in accordance with GAAP consistently applied throughout the period
covered thereby, except as otherwise expressly noted therein; and (iii) show
all material indebtedness and other liabilities, direct or contingent, of the
Borrower and its Subsidiaries as of the date thereof, including liabilities for
taxes, material commitments and Indebtedness.

(b)           The unaudited consolidated balance
sheet of the Borrower and its Subsidiaries dated June 30, 2006, and the related
consolidated statements of income or operations, shareholders’ equity and cash
flows for the fiscal quarter ended on that date (i) were prepared in accordance
with GAAP consistently applied throughout the period covered thereby, except as
otherwise expressly noted therein, (ii) fairly present the financial condition
of the Borrower and its Subsidiaries as of the date thereof and their results
of operations for the period covered thereby, subject, in the case of clauses
(i) and (ii), to the absence of footnotes and to normal year-end audit
adjustments and (iii) show all material indebtedness and other liabilities,
direct or contingent, of the Borrower and its Subsidiaries as of the date
thereof, including liabilities for taxes, material commitments and
Indebtedness.

 35
 

 

(c)           Since the date of the Audited
Financial Statements, there has been no event or circumstance, either
individually or in the aggregate, that has had or could reasonably be expected
to have a Material Adverse Effect.

(d)           The financial information of the
Borrower and its Subsidiaries delivered pursuant to Section 6.01 (i)
were prepared in accordance with GAAP consistently applied throughout the
period covered thereby, except as otherwise expressly noted therein; (ii)
fairly present the financial condition of the Borrower and its Subsidiaries as
of the date thereof and their results of operations for the period covered
thereby in accordance with GAAP consistently applied throughout the period
covered thereby, except as otherwise expressly noted therein; and (iii) show
all material indebtedness and other liabilities, direct or contingent, of the
Borrower and its Subsidiaries as of the date thereof, including liabilities for
taxes, material commitments and Indebtedness.

(e)           To the best knowledge of the
Borrower, no Internal Control Event exists or has occurred since the date of
the Audited Financial Statements that has resulted in or could reasonably be
expected to result in a misstatement in any material respect, in any financial
information heretofore delivered to the Administrative Agent or the Lenders, of
(i) covenant compliance calculations provided hereunder or (ii) the
assets, liabilities, financial condition or results of operations of the
Borrower and its Subsidiaries on a consolidated basis.

5.06        Litigation.

There
are no actions, suits, proceedings, claims, investigations or disputes pending
or, to the knowledge of the Borrower after due and diligent investigation,
threatened or contemplated, at law, in equity, in arbitration or before any
Governmental Authority, by or against the Borrower or any of its Subsidiaries
or against any of their properties or revenues that (a) purport to affect or
pertain to this Agreement or any other Loan Document, or any of the
transactions contemplated hereby, or (b) either individually or in the
aggregate, if determined adversely, could reasonably be expected to have a Material
Adverse Effect.

5.07        No Default.

Neither
the Borrower nor any Subsidiary is in default under or with respect to any
Contractual Obligation that could, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.  No Default has occurred and is continuing or
would result from the consummation of the transactions contemplated by this
Agreement or any other Loan Document.

5.08        Ownership of Property; Liens; Leases.

(a)           Each of the Borrower and each
Subsidiary has good record and marketable title in fee simple to, or valid
leasehold interests in, all real property necessary or used in the ordinary
conduct of its business, except for such defects in title as could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

(b)           The property of the Borrower and its
Subsidiaries is subject to no Liens, other than Liens permitted by Section
7.01.

(c)           Except as could not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect, (i)
there are no renewal or extension options applicable to any lease to which the
Borrower or any Subsidiary is a party; (ii) to the Borrower’s knowledge, no
condition exists which, with the giving of notice or the passage of time, or
both, would permit any lessee to cancel its obligations

 36
 

 

under any lease to which the Borrower or any
Subsidiary is a party; (iii) the Borrower has received no notice that any
lessee intends to cease operations at any leased property prior to the expiration
of the term of the applicable lease (other than temporarily due to casualty,
remodeling, renovation or any similar causes) and (iv) to the Borrower’s knowledge,
none of the lessees or their sub-lessees, if any, under any of the leases to
which the Borrower or any Subsidiary is a party is the subject of any
bankruptcy, reorganization, insolvency or similar proceeding.

5.09        Environmental Compliance.

The
Borrower and its Subsidiaries conduct in the ordinary course of business a
review of the effect of existing Environmental Laws and claims alleging
potential liability or responsibility for violation of any Environmental Law on
their respective businesses, operations and properties, and as a result thereof
the Borrower has reasonably concluded that such Environmental Laws and claims
could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

5.10        Insurance.

The
properties of the Borrower and its Subsidiaries are insured with financially
sound and reputable insurance companies not Affiliates of the Borrower, in such
amounts, with such deductibles and covering such risks as are customarily
carried by companies engaged in similar businesses and owning similar
properties in localities where the Borrower or the applicable Subsidiary operates.

5.11        Taxes.

The
Borrower and its Subsidiaries have filed all Federal, state and other material
tax returns and reports required to be filed, and have paid all Federal, state
and other material taxes, assessments, fees and other governmental charges
levied or imposed upon them or their properties, income or assets otherwise due
and payable, except those which are being contested in good faith by
appropriate proceedings diligently conducted and for which adequate reserves
have been provided in accordance with GAAP. 
There is no proposed tax assessment against the Borrower or any
Subsidiary that would, if made, have a Material Adverse Effect.  Neither the Borrower nor any Subsidiary
thereof is party to any tax sharing agreement.

5.12        ERISA Compliance.

(a)           Each Plan is in compliance in all
material respects with the applicable provisions of ERISA, the Code and other
Federal or state Laws.  Each Plan that is
intended to qualify under Section 401(a) of the Code has received a favorable
determination letter from the IRS or an application for such a letter is
currently being processed by the IRS with respect thereto and, to the best
knowledge of the Borrower, nothing has occurred which would prevent, or cause
the loss of, such qualification.  The
Borrower and each ERISA Affiliate have made all required contributions to each
Plan subject to Section 412 of the Code, and no application for a funding
waiver or an extension of any amortization period pursuant to Section 412 of
the Code has been made with respect to any Plan.

(b)           There are no pending or, to the best
knowledge of the Borrower, threatened claims, actions or lawsuits, or action by
any Governmental Authority, with respect to any Plan that could reasonably be
expected to have a Material Adverse Effect. 
There has been no prohibited transaction or violation of the fiduciary
responsibility rules with respect to any Plan that has resulted or could
reasonably be expected to result in a Material Adverse Effect.

 37

 

(c)           (i) No ERISA Event has occurred or is
reasonably expected to occur; (ii) no Pension Plan has any Unfunded Pension
Liability; (iii) neither the Borrower nor any ERISA Affiliate has incurred, or
reasonably expects to incur, any liability under Title IV of ERISA with respect
to any Pension Plan (other than premiums due and not delinquent under Section
4007 of ERISA); (iv) neither the Borrower nor any ERISA Affiliate has incurred,
or reasonably expects to incur, any liability (and no event has occurred which,
with the giving of notice under Section 4219 of ERISA, would result in such
liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer
Plan; and (v) neither the Borrower nor any ERISA Affiliate has engaged in a
transaction that could be subject to Sections 4069 or 4212(c) of ERISA.

5.13        Subsidiaries; Equity Interests;
Subsidiary Guarantors.

(a)           As of the Closing Date, the Borrower
has no Subsidiaries other than those specifically disclosed in Part (a) of Schedule
5.13, and the outstanding Equity Interests in such Subsidiaries have been
validly issued, are fully paid and nonassessable and are owned by the Borrower
or one of its Subsidiaries in the amounts specified on Part (a) of Schedule
5.13 free and clear of all Liens. 
Part (a) of Schedule 5.13 discloses, for each of the Borrower’s
direct and indirect Subsidiaries existing as of the Closing Date:

(i)      the
percentage of the outstanding Equity Interests in the Subsidiary that is
beneficially owned by the Borrower, including Equity Interests acquired as a
result of the Acquisitions;

(ii)     the
Total Asset Value of the Subsidiary;

(iii)    the
amount of Indebtedness of the Subsidiary;

(iv)    the
amount of Indebtedness of the Subsidiary that is secured by a Lien (other than
Permitted Liens);

(v)     a
notation whether or not the Subsidiary is a Guarantor and, if not, a
description of the basis on which the Subsidiary is not required to be a
Guarantor pursuant to Section 6.13; and

(vi)    the
amount of revenue of the Subsidiary for the six month period ended
June 30, 2006.

(b)           The Borrower has no equity
investments in any other Person other than those specifically disclosed in Part
(b) of Schedule 5.13 and set forth as part of Schedule 5.13(b) is
an identification of those entities that are Material Joint Ventures.

(c)           As of the Closing Date, the Borrower
has no Subsidiaries that would be required to become Subsidiary Guarantors
pursuant to Section 6.13(a) other than those Subsidiaries that are
Subsidiary Guarantors.

5.14        Margin Regulations; Investment Company
Act; REIT Status.

(a)           The Borrower is not engaged and will
not engage, principally or as one of its important activities, in the business
of purchasing or carrying margin stock (within the meaning of Regulation U
issued by the FRB), or extending credit for the purpose of purchasing or carrying
margin stock.

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(b)           None of the Borrower, any Person
Controlling the Borrower, or any Subsidiary is or is required to be registered
as an “investment company” under the Investment Company Act of 1940.

(c)           The Borrower meets all requirements
to qualify as a REIT.  No Subsidiary is
required to qualify as a REIT on or after the Closing Date.

5.15        Disclosure.

The
Borrower has disclosed to the Administrative Agent and the Lenders all
agreements, instruments and corporate or other restrictions to which it or any
of its Subsidiaries is subject, and all other matters known to it, that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect.  No report,
financial statement, certificate or other information furnished (whether in
writing or orally) by or on behalf of the Borrower or any of its Subsidiaries
to the Administrative Agent or any Lender in connection with the transactions
contemplated hereby and the negotiation of this Agreement or delivered
hereunder or under any other Loan Document (in each case, as modified or supplemented
by other information so furnished) contains any material misstatement of fact
or omits to state any material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading; provided
that, with respect to projected financial information, the Borrower represents
only that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time.

5.16        Compliance with Laws.

Each
of the Borrower and each Subsidiary is in compliance in all material respects
with the requirements of all Laws and all orders, writs, injunctions and
decrees applicable to it or to its properties, except in such instances in
which (a) such requirement of Law or order, writ, injunction or decree is being
contested in good faith by appropriate proceedings diligently conducted or (b)
the failure to comply therewith, either individually or in the aggregate, could
not reasonably be expected to have a Material Adverse Effect.

5.17        Intellectual Property; Licenses, Etc.

The
Borrower and its Subsidiaries own, or possess the right to use, all of the
trademarks, service marks, trade names, copyrights, patents, patent rights,
franchises, licenses and other intellectual property rights (collectively, “IP
Rights”) that are reasonably necessary for the operation of their
respective businesses, without conflict with the rights of any other Person.  To the best knowledge of the Borrower, no
slogan or other advertising device, product, process, method, substance, part
or other material now employed, or now contemplated to be employed, by the
Borrower or any Subsidiary infringes upon any rights held by any other Person.  No claim or litigation regarding any of the
foregoing is pending or, to the best knowledge of the Borrower, threatened,
which, either individually or in the aggregate, could reasonably be expected to
have a Material Adverse Effect.

5.18        Use of Proceeds.

The
proceeds of the Loans hereunder will be used solely for the purposes specified
in Section 6.11.  No proceeds of
the Loans hereunder will be used for the acquisition of another Person unless
the board of directors (or other comparable governing body) or stockholders (or
other equity owners), as appropriate, of such Person has approved such
acquisition.

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5.19        Taxpayer Identification Number.

The
Borrower’s true and correct U.S. taxpayer identification number is set forth on
Schedule 10.02.

5.20        Acquisition Documents.

The
Lenders have been furnished true and complete copies of each Acquisition Document
to the extent executed and delivered on or prior to the Closing Date.

ARTICLE VI

AFFIRMATIVE COVENANTS

So
long as any Lender shall have any Commitment hereunder, any Loan or other
Obligation hereunder shall remain unpaid or unsatisfied, the Borrower shall,
and shall (except in the case of the covenants set forth in Sections 6.01,
6.02, and 6.03) cause each Subsidiary to:

6.01        Financial Statements.

Deliver
to the Administrative Agent and each Lender, in form and detail satisfactory to
the Administrative Agent and the Requisite Lenders:

(a)           as soon as available, but in any
event within five days of the date the Borrower is required to file its Form
10-K with the SEC (without giving effect to any extension of such due date,
whether obtained by filing the notification permitted by Rule 12b-25 or any
successor provision thereto or otherwise) (commencing with the fiscal year
ended December 31, 2006), a consolidated balance sheet of the Borrower and
its Subsidiaries as at the end of such fiscal year, and the related
consolidated statements of income or operations, shareholders’ equity and cash
flows for such fiscal year, setting forth in each case in comparative form the
figures for the previous fiscal year, all in reasonable detail and prepared in
accordance with GAAP, such consolidated statements to be audited and
accompanied by (i) a report and opinion of a Registered Public Accounting
Firm of nationally recognized standing reasonably acceptable to the Requisite
Lenders, which report and opinion shall be prepared in accordance with
generally accepted auditing standards and applicable Securities Laws and shall
not be subject to any “going concern” or like qualification or exception or any
qualification or exception as to the scope of such audit or with respect to the
absence of any material misstatement and (ii) an opinion of such
Registered Public Accounting Firm independently assessing the Borrower’s
internal controls over financial reporting in accordance with Item 308 of SEC
Regulation S-K, PCAOB Auditing Standard No. 2, and Section 404 of the
Sarbanes-Oxley Act of 2002; and

(b)           as soon as available, but in any
event within five days of the date the Borrower is required to file its Form
10-Q with the SEC (without giving effect to any extension of such due date,
whether obtained by filing the notification permitted by Rule 12b-25 or any
successor provision thereto or otherwise) (commencing with the fiscal quarter ended
September 30, 2006), a consolidated balance sheet of the Borrower as at
the end of such fiscal quarter, and the related consolidated statements of
income or operations for such fiscal quarter and for the portion of the
Borrower’s fiscal year then ended, and a statement of cash flow for the portion
of the Borrower’s fiscal year then ended setting forth in each case in
comparative form the figures for the corresponding fiscal quarter of the
previous fiscal year and the corresponding portion of the previous fiscal year,
all in reasonable detail, such consolidated statements to be certified by a

 40
 

 

Responsible
Officer of the Borrower as fairly presenting the financial condition, results
of operations, shareholders’ equity and cash flows of the Borrower and its
Subsidiaries in accordance with GAAP, subject only to normal year-end audit
adjustments and the absence of footnotes; and

(c)           as soon as available, but in no event
later that 60 days following the end of each fiscal year of the Borrower, an
annual forecast for the then-current fiscal year, prepared in a manner and in
the form of the forecast provided on the Closing Date or in such other form as
is reasonably acceptable to the Administrative Agent and the Requisite Lenders.

As
to any information contained in materials furnished pursuant to Section
6.02(d), the Borrower shall not be separately required to furnish such
information under clause (a) or (b) above, but the foregoing shall not be in
derogation of the obligation of the Borrower to furnish the information and
materials described in clauses (a) and (b) above at the times specified
therein.

6.02        Certificates; Other Information.

Deliver
to the Administrative Agent and each Lender, in form and detail satisfactory to
the Administrative Agent and the Requisite Lenders:

(a)           concurrently
with the delivery of the financial statements referred to in Sections
6.01(a) and (b) (commencing with the delivery of the financial
statements for the fiscal quarter ended September 30, 2006), a duly
completed Compliance Certificate signed by a Responsible Officer of the
Borrower;

(b)           promptly
after any request by the Administrative Agent or any Lender, copies of any
management letters submitted to the board of directors (or the audit committee
of the board of directors) of the Borrower by independent accountants in
connection with an audit of the accounts of the Borrower;

(c)           concurrently
with the delivery of the financial statements referred to in Section 6.01(a),
a certificate of its independent certified public accountants certifying such
financial statements and stating that in making the examination necessary
therefor no knowledge was obtained of any Default or, if any such Default shall
exist, stating the nature and status of such event;

(d)           promptly
after the same are available, copies of each annual report, proxy or financial
statement or other report or communication sent to the stockholders of the
Borrower, and copies of all annual, regular, periodic and special reports and
registration statements which the Borrower may file or be required to file with
the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934, and
not otherwise required to be delivered to the Administrative Agent pursuant
hereto;

(e)           promptly,
and in any event within five Business Days after receipt thereof by the Borrower
or any Subsidiary thereof, copies of each notice or other correspondence received
from the SEC (or comparable agency in any applicable non-U.S. jurisdiction)
concerning any investigation by such agency regarding financial or other
operational results of the Borrower or any Subsidiary thereof; and

(f)            promptly,
such additional information regarding the business, financial or corporate affairs
of the Borrower or any Subsidiary, or compliance with the terms of the Loan Documents,
as the Administrative Agent or any Lender may from time to time reasonably request.

 41
 

 

Documents
required to be delivered pursuant to Section 6.01(a) or (b) or Section
6.02(d) (to the extent any such documents are included in materials
otherwise filed with the SEC) may be delivered electronically and if so
delivered, shall be deemed to have been delivered on the date (i) on which the
Borrower posts such documents, or provides a link thereto on the Borrower’s
website on the Internet at the website address listed on Schedule 10.02;
or (ii) on which such documents are posted on the Borrower’s behalf on an
Internet or intranet website, if any, to which each Lender and the Administrative
Agent have access (whether a commercial, third-party website or whether
sponsored by the Administrative Agent); provided that:  (i) the Borrower shall deliver paper copies
of such documents to the Administrative Agent or any Lender that requests the
Borrower to deliver such paper copies until a written request to cease delivering
paper copies is given by the Administrative Agent or such Lender and (ii) the
Borrower shall notify the Administrative Agent and each Lender (by telecopier
or electronic mail) of the posting of any such documents and provide to the
Administrative Agent by electronic mail electronic versions (i.e., soft
copies) of such documents. 
Notwithstanding anything contained herein, in every instance the
Borrower shall be required to provide paper copies of the Compliance
Certificates required by Section 6.02(a) to the Administrative
Agent.  Except for such Compliance
Certificates, the Administrative Agent shall have no obligation to request the
delivery or to maintain copies of the documents referred to above, and in any
event shall have no responsibility to monitor compliance by the Borrower with
any such request for delivery, and each Lender shall be solely responsible for
requesting delivery to it or maintaining its copies of such documents.

The
Borrower hereby acknowledges that (a) the Administrative Agent and/or the
Arrangers will make available to the Lenders materials and/or information
provided by or on behalf of the Borrower hereunder (collectively, “Borrower
Materials”) by posting the Borrower Materials on IntraLinks or another
similar electronic system (the “Platform”) and (b) certain of the
Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to receive
material non-public information with respect to the Borrower or its securities)
(each, a “Public Lender”).  The
Borrower hereby agrees that so long as the Borrower is the issuer of any
outstanding debt or equity securities that are registered or issued pursuant to
a private offering or is actively contemplating issuing any such securities (w)
all Borrower Materials that are to be made available to Public Lenders shall be
clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that
the word “PUBLIC” shall appear prominently on the first page thereof;
(x) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to
have authorized the Administrative Agent, the Arrangers and the Lenders to
treat such Borrower Materials as not containing any material non-public
information with respect to the Borrower or its securities for purposes of
United States Federal and state securities laws (provided, however,
that to the extent such Borrower Materials constitute Information, they shall
be treated as set forth in Section 10.07); (y) all Borrower Materials
marked “PUBLIC” are permitted to be made available through a portion of the
Platform designated “Public Investor;” and (z) the Administrative Agent
and the Arrangers shall be entitled to treat any Borrower Materials that are
not marked “PUBLIC” as being suitable only for posting on a portion of the Platform
not designated “Public Investor.” 
Notwithstanding the foregoing, the Borrower shall be under no obligation
to mark any Borrower Materials “PUBLIC.”

6.03        Notices.

Promptly
notify the Administrative Agent and each Lender of:

(a)           the
occurrence of any Default;

 42
 

 

(b)           any
matter that has resulted or could reasonably be expected to result in a
Material Adverse Effect, including (i) breach or non-performance of, or any
default under, a Contractual Obligation of the Borrower or any Subsidiary; (ii)
any dispute, litigation, investigation, proceeding or suspension between the
Borrower or any Subsidiary and any Governmental Authority; or (iii) the commencement
of, or any material development in, any litigation or proceeding affecting the
Borrower or any Subsidiary, including pursuant to any applicable Environmental
Laws;

(c)           the
occurrence of any ERISA Event;

(d)           any
material change in accounting policies or financial reporting practices by the
Borrower or any Subsidiary;

(e)           any
announcement by Moody’s or S&P of any change or possible change in a Debt
Rating; and

(f)            of
the determination by the Registered Public Accounting Firm providing the
opinion required under Section 6.01(a)(ii) (in connection with its
preparation of such  opinion) or the
Borrower’s determination at any time of the occurrence or existence of any
Internal Control Event.

Each
notice pursuant to this Section shall be accompanied by a statement of a
Responsible Officer of the Borrower setting forth details of the occurrence
referred to therein and stating what action the Borrower has taken and proposes
to take with respect thereto.  Each
notice pursuant to Section 6.03(a) shall describe with particularity any
and all provisions of this Agreement and any other Loan Document that have been
breached.

6.04        Payment of Obligations.

Pay
and discharge as the same shall become due and payable, all its obligations and
liabilities, including (a) all tax liabilities, assessments and governmental
charges or levies upon it or its properties or assets, unless the same are
being contested in good faith by appropriate proceedings diligently conducted
and adequate reserves in accordance with GAAP are being maintained by the
Borrower or such Subsidiary; (b) all lawful claims which, if unpaid, would by
law become a Lien upon its property; and (c) all Indebtedness, as and when due
and payable, but subject to any subordination provisions contained in any
instrument or agreement evidencing such Indebtedness, in each case except where
the failure to do so could not reasonably be expected to have a Material
Adverse Effect.

6.05        Preservation of Existence, Etc.

(a) Preserve,
renew and maintain in full force and effect its legal existence and good
standing under the Laws of the jurisdiction of its organization except in a
transaction not prohibited by Section 7.04 or 7.05, or to the
extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect; (b) take all reasonable action to maintain all rights,
privileges, permits, licenses and franchises necessary or desirable in the
normal conduct of its business, except to the extent that failure to do so
could not reasonably be expected to have a Material Adverse Effect; and (c) preserve
or renew all of its registered patents, trademarks, trade names and service
marks, the non-preservation of which could reasonably be expected to have a
Material Adverse Effect.  Without
limiting the generality of the foregoing, the Borrower will do all things
necessary to maintain its status as a REIT.

 43
 

 

6.06        Maintenance of Properties.

(a) Maintain,
preserve and protect, or make contractual or other provisions to cause to maintain,
preserve or protect, all of its properties and equipment necessary in the
operation of its business in good working order and condition, ordinary wear
and tear excepted, in each case except where the failure to do so could not
reasonably be expected to have a Material Adverse Effect; (b) make, or make
contractual or other provisions to cause to be made, all necessary repairs
thereto and renewals and replacements thereof except where the failure to do so
could not reasonably be expected to have a Material Adverse Effect; and (c) use
the standard of care typical in the industry in the operation and maintenance
of its facilities.

6.07        Maintenance of Insurance.

(a)           Maintain with financially sound and
reputable insurance companies not Affiliates of the Borrower, insurance with
respect to its properties and business against loss or damage of the kinds customarily
insured against by Persons engaged in the same or similar business, of such
types and in such amounts as are customarily carried under similar
circumstances by such other Persons.

(b)           Use its, and cause the Subsidiaries
to use their, commercially reasonable best efforts to ensure that each lessee
of a property owned in whole or in part, directly or indirectly, by the Borrower
or any Subsidiary, and each mortgagee of a property on which the Borrower or
any Subsidiary holds a mortgage, has, and until the Maturity Date will keep, in
place adequate insurance that names the Borrower or such Subsidiary as a loss
payee.  For purposes of the preceding
sentence “adequate insurance” shall mean insurance, with financially
sound and reputable insurers in such amounts and insuring against such risks as
are customarily maintained by similar businesses.

6.08        Compliance with Laws.

Comply
in all material respects with the requirements of all Laws and all orders,
writs, injunctions and decrees applicable to it or to its business or property,
except in such instances in which (a) such requirement of Law or order,
writ, injunction or decree is being contested in good faith by appropriate
proceedings diligently conducted; or (b) the failure to comply therewith could
not reasonably be expected to have a Material Adverse Effect.

6.09        Books and Records.

Maintain
proper books of record and account, in which full, true and correct entries in
conformity with GAAP consistently applied shall be made of all financial
transactions and matters involving the assets and business of the Borrower or
such Subsidiary, as the case may be.

6.10        Inspection Rights.

Permit
representatives and independent contractors of the Administrative Agent and
each Lender to visit and inspect any of its properties, to examine its
corporate, financial and operating records, and make copies thereof or
abstracts therefrom, and to discuss its affairs, finances and accounts with its
directors, officers, and independent public accountants, all at the expense of
the Borrower and at such reasonable times during normal business hours and as
often as may be reasonably desired, upon reasonable advance notice to the
Borrower; provided, however, that when an Event of Default exists
the Administrative Agent or any Lender (or any of their respective
representatives or independent contractors) may do any of the foregoing at the
expense of the Borrower at any time during normal business hours and without advance
notice.

 44
 

 

6.11        Use of Proceeds.

Use
proceeds from the Loans to finance, in part, the CNL Merger and the Advisor
Merger, to pay transaction fees, commissions and expenses in connection
therewith and to repay the amounts owed under the Existing Credit Agreement and
the Existing CNL Credit Agreement.

6.12        REIT Status.

The
Borrower will, and will cause each of its Subsidiaries to, operate its business
at all times so as to satisfy all requirements necessary to qualify and
maintain the Borrower’s  qualification as
a real estate investment trust under Sections 856 through 860 of the Code.  The Borrower will maintain adequate records
so as to comply with all record-keeping requirements relating to its
qualification as a real estate investment trust as required by the Code and
applicable regulations of the Department of the Treasury promulgated thereunder
and will properly prepare and timely file with the Internal Revenue Service all
returns and reports required thereby.

6.13        New Subsidiaries; Guarantees.

(a)           Subject to Section 6.13(b),
with respect to any Person that is or becomes a Domestic Subsidiary of the
Borrower as to which the Borrower directly or indirectly owns all of the Equity
Interests, cause such Subsidiary to execute and deliver to the Administrative
Agent a Joinder Agreement, guaranty, guaranty supplement or comparable
documentation to become a Subsidiary Guarantor on or before the deadline for the
delivery of the next Compliance Certificate pursuant to Section 6.02 (and in
any event within 30 days after such person becomes a Subsidiary) and cause such
Subsidiary to deliver such other documentation as the Administrative Agent may
reasonably request in connection with the foregoing, including, without
limitation, certified resolutions and other organizational and authorizing
documents of such Subsidiary, favorable opinions of counsel to such Subsidiary
(which shall cover, among other things, the legality, validity, binding effect
and enforceability of the documentation referred to above), all in form,
content and scope reasonably satisfactory to the Administrative Agent.

(b)           A Subsidiary of the Borrower shall
not be required to become a Subsidiary Guarantor pursuant to Section 6.13(a)
if the Borrower provides evidence reasonably satisfactory to the Administrative
Agent that such Subsidiary is prohibited by the terms of its articles or
certificate of incorporation, operating agreement or other constituent
documents, or by contract, from becoming a Guarantor.  If a Subsidiary ceases to or fails to satisfy
the requirements of this Section 6.13(b), the Borrower shall cause such
Subsidiary to become a Subsidiary Guarantor as required by Section 6.13(a).

6.14        Employee Benefits.

(a) Comply
in all material respects with the applicable provisions of ERISA and the Code
with respect to each Plan, and (b) furnish to the Administrative Agent
(x)  within five days after any Responsible Officer of  the Borrower or any ERISA Affiliate knows or
has reason to know that, any ERISA Event has occurred that, alone or together
with any other ERISA Event could reasonably be expected to result in liability
of the Borrower or any of its ERISA Affiliates in an aggregate amount exceeding
the Threshold Amount or the imposition of a Lien, a statement setting forth
details as to such ERISA Event and the action, if any, that the Borrower or
ERISA Affiliate proposes to take with respect thereto, and (y) upon
request by the Administrative Agent, copies of (i) each Schedule B
(Actuarial Information) to the annual report (Form 5500 Series) filed by the
Borrower or any ERISA Affiliate with the Internal Revenue Service with respect
to each Pension Plan; (ii) the most recent actuarial valuation report for
each Pension Plan; (iii) all notices received by any Company or any ERISA
Affiliate from a Multiemployer Plan sponsor or any governmental agency
concerning an ERISA Event; and (iv) such other documents or governmental
reports or filings relating to any Plan as the Administrative Agent shall
reasonably request.

 45
 

 

ARTICLE VII

NEGATIVE COVENANTS

So
long as any Lender shall have any Commitment hereunder or any Loan or other
Obligation hereunder shall remain unpaid or unsatisfied, the Borrower shall
not, nor shall it permit any Subsidiary to, directly or indirectly:

7.01        Liens.

Create,
incur, assume or suffer to exist any Lien upon any of its property, assets or
revenues, whether now owned or hereafter acquired, other than the following:

(a)           Liens pursuant to any Loan Document;

(b)           Liens securing Indebtedness permitted
under Section 7.03;

(c)           Liens for taxes not yet due or which
are being contested in good faith and by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto are maintained on the
books of the applicable Person in accordance with GAAP;

(d)           carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s or other like Liens arising in the ordinary course
of business which are not overdue for a period of more than 30 days or which
are being contested in good faith and by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto, to the extent required by
GAAP, are maintained on the books of the applicable Person;

(e)           pledges or deposits in the ordinary
course of business in connection with workers’ compensation, unemployment
insurance and other social security legislation, other than any Lien imposed by
ERISA;

(f)            deposits to secure the performance
of bids, trade contracts and leases (other than Indebtedness), statutory
obligations, surety bonds (other than bonds related to judgments or
litigation), performance bonds and other obligations of a like nature incurred
in the ordinary course of business;

(g)           easements, rights-of-way, restrictions
and other similar encumbrances affecting real property which, in the aggregate,
are not substantial in amount, and which do not in any case materially detract
from the value of the property subject thereto or materially interfere with the
ordinary conduct of the business of the applicable Person; and

(h)           Liens securing judgments for the
payment of money not constituting an Event of Default under Section 8.01(h)
or securing appeal or other surety bonds related to such judgments.

7.02        Investments.

(a)           make or allow Investments in
Development Property to exceed, in the aggregate at any one time outstanding,
15% of Consolidated Total Asset Value.

 46
 

 

(b)           make or allow Investments in Joint
Ventures to exceed, in the aggregate at any one time outstanding, 25% of
Consolidated Total Asset Value.  For
purposes of this Section 7.02(b), the Borrower’s aggregate Investment in
Joint Ventures will be valued at (i) the aggregate amount of cash and cash
equivalents and the book value of other property contributed by the Borrower to
the Joint Ventures minus (ii) the aggregate amount of distributions received by
the Borrower from the Joint Ventures that would be classified as a return of
capital (as opposed to a return on investment).

7.03        Indebtedness.

(a)           Create, incur, assume or suffer to
exist any Indebtedness of the Borrower or any Subsidiary Guarantor, except:

(i)      Indebtedness
under the Loan Documents; and

(ii)     other
Indebtedness; provided that after giving effect thereto (including any
Liens associated therewith) the Borrower and its Subsidiaries are in compliance
with all of the terms of this Agreement, including, but not limited to, the
financial covenants set forth in Section 7.10.

(b)           Create, incur, assume or suffer to
exist any Secured Debt or any Indebtedness of any Subsidiary of the Borrower
that is not a Subsidiary Guarantor (other than Indebtedness owing to the
Borrower or another Subsidiary of the Borrower) that, when combined with (i)
outstanding Secured Debt and (ii) outstanding Indebtedness of other Subsidiaries
that are not Subsidiary Guarantors exceeds 30% of Consolidated Total Asset
Value.

7.04        Fundamental Changes.

Merge,
dissolve, liquidate, consolidate with or into another Person, except that, so
long as no Default exists or would result therefrom, any Subsidiary may merge
with (a) the Borrower, provided that the Borrower shall be the
continuing or surviving Person, or (b) any one or more other Subsidiaries, provided
that when any wholly-owned Subsidiary is merging with another Subsidiary, the
wholly-owned Subsidiary shall be the continuing or surviving Person.

7.05        Dispositions.

Make
any Disposition of all or a substantial part of the assets of the Borrower and
its Subsidiaries.

7.06        Restricted Payments.

Declare
or make, directly or indirectly, any Restricted Payment, or incur any
obligation (contingent or otherwise) to do so, except that, so long as no
Default shall have occurred and be continuing or would result therefrom, the
Borrower and each Subsidiary may purchase, redeem or otherwise acquire Equity
Interests issued by it in an amount not to exceed, in the aggregate, fifteen
percent (15%) of Consolidated Tangible Net Worth during the term of this
Agreement.

7.07        Change in Nature of Business.

Engage
in any material line of business substantially different from those lines of
business conducted by the Borrower and its Subsidiaries on the date hereof or
any business substantially related or incidental thereto.

 47
 

 

7.08        Transactions with Affiliates.

Enter
into any transaction of any kind with any Affiliate of the Borrower (other than
a Subsidiary), whether or not in the ordinary course of business, other than on
fair and reasonable terms substantially as favorable to the Borrower or such
Subsidiary as would be obtainable by the Borrower or such Subsidiary at the
time in a comparable arm’s-length transaction with a Person other than an
Affiliate.

7.09        Burdensome Agreements.

Enter
into any Contractual Obligation (other than this Agreement or any other Loan
Document) that limits the ability of (a) any wholly-owned Subsidiary of the
Borrower (other than a Subsidiary that is a bankruptcy remote special purpose
entity) to Guarantee the Indebtedness of the Borrower or (b) the Borrower to
create, incur, assume or suffer to exist Liens on its property; provided,
however, that this clause (b) shall not prohibit any negative pledge
incurred or provided in favor of any holder of Indebtedness permitted under Section
7.03 solely to the extent any such negative pledge (i) relates to the
property financed by or the subject of such Indebtedness or (ii) only requires
the grant of a Lien to secure such Indebtedness if a Lien is granted by the
Borrower to secure other Indebtedness of the Borrower.

7.10        Financial Covenants.

(a)           Leverage Ratio.  Permit the Leverage Ratio to be greater than
the following amounts as of the end of any fiscal quarter ending during the
corresponding period set forth below:

	
  Beginning on the Closing
  Date and on or prior to September 30, 2007

  	
   

  	
  0.70

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Beginning on
  October 1, 2007 and on or prior to March 31, 2008

  	
   

  	
  0.65

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Beginning on
  April 1, 2008

  	
   

  	
  0.60

  	
   

  

 

(b)           Secured Debt Ratio.  Permit the Secured Debt Ratio to be greater
than .30 to 1.0 as of the end of any fiscal quarter.

(c)           Fixed Charge Coverage Ratio.  Permit the Fixed Charge Coverage Ratio to be
less than the following amounts as of the end of any fiscal quarter ending
during the corresponding period set forth below:

	
  Beginning on the Closing
  Date and on or prior to September 30, 2008

  	
   

  	
  1.50

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Beginning on October 1,
  2008

  	
   

  	
  1.75

  	
   

  

 

(d)           Unsecured Leverage Ratio.  Permit the Unsecured Leverage Ratio to be
greater than the following amounts as of the end of any fiscal quarter ending
during the corresponding period set forth below:

	
  Beginning on the Closing
  Date and on or prior to December 31, 2006

  	
   

  	
  not tested

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Beginning on
  January 1, 2007 and on or prior to June 30, 2007

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Beginning on
  July 1, 2007 and on or prior to September 30, 2008

  	
   

  	
  0.75

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Beginning on October 1,
  2008

  	
   

  	
  0.65

  	
   

  

 

 48
 

 

(e)           Consolidated Tangible Net Worth.  Permit the Consolidated Tangible Net Worth to
be, as of the end of any fiscal quarter, less than (i) 85% of the
Consolidated Tangible Net Worth at the Closing Date (on a pro forma basis to
reflect the Acquisitions) plus (ii) 85% of Net Cash Proceeds from all
Public Equity Issuances subsequent to the Closing Date.

ARTICLE VIII

EVENTS OF DEFAULT AND REMEDIES

8.01        Events of Default.

Any
of the following shall constitute an Event of Default:

(a)           Non-Payment.  The Borrower or any other Loan Party fails to
pay (i) when and as required to be paid herein, any amount of principal of any
Loan, or (ii) within three days after the same becomes due, any interest on any
Loan or any fee due hereunder, or (iii) within five days after the same becomes
due, any other amount payable hereunder or under any other Loan Document; or

(b)           Specific
Covenants.  Any Loan Party or any of
its Subsidiaries fails to perform or observe any term, covenant or agreement contained
in any of Section 6.01, 6.02, 6.03, 6.05, 6.10,
6.11, 6.13 or Article VII; or

(c)           Other
Defaults.  Any Loan Party fails to
perform or observe any other covenant or agreement (not specified in subsection
(a) or (b) above) contained in any Loan Document on its part to be performed or
observed and such failure continues for 30 days; or

(d)           Representations
and Warranties.  Any representation,
warranty, certification or statement of fact made or deemed made by or on
behalf of the Borrower or any other Loan Party herein, in any other Loan Document,
or in any document delivered in connection herewith or therewith shall be
incorrect or misleading when made or deemed made; or

(e)           Cross-Default.  (i) Any Loan Party or any of its Subsidiaries
(A) fails to make any payment when due (whether by scheduled maturity, required
prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness
or Guarantee (other than Indebtedness hereunder and Indebtedness under Swap Contracts)
having an aggregate principal amount (including undrawn committed or available
amounts and including amounts owing to all creditors under any combined or
syndicated credit arrangement) of more than the Threshold Amount, or (B) fails
to observe or perform any other agreement or condition relating to any such
Indebtedness or Guarantee or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event occurs, the effect
of which default or other event is to cause, or to permit the holder or holders
of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or
a trustee or agent on behalf of such holder or holders or beneficiary or
beneficiaries) to cause, with the giving of notice if required, such
Indebtedness to be demanded or to become due or to be repurchased, prepaid,
defeased or redeemed (automatically or otherwise), or an offer to repurchase,
prepay, defease or redeem such Indebtedness to be made, prior to its stated
maturity, or such Guarantee to become payable or cash collateral in respect
thereof to be

 49
 

 

demanded; or (ii) there occurs under any Swap Contract an Early Termination
Date (as defined in such Swap Contract) resulting from (A) any event of default
under such Swap Contract as to which the Borrower or any Subsidiary is the
Defaulting Party (as defined in such Swap Contract) or (B) any Termination
Event (as so defined) under such Swap Contract as to which the Borrower or any
Subsidiary is an Affected Party (as so defined) and, in either event, the Swap
Termination Value owed by such Loan Party or such Subsidiary as a result
thereof is greater than the Threshold Amount; or

(f)            Insolvency
Proceedings, Etc.  Any Loan Party or
any of its Subsidiaries institutes or consents to the institution of any
proceeding under any Debtor Relief Law, or makes an assignment for the benefit
of creditors; or applies for or consents to the appointment of any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer
for it or for all or any material part of its property; or any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer
is appointed without the application or consent of such Person and the
appointment continues undischarged or unstayed for 60 calendar days; or any
proceeding under any Debtor Relief Law relating to any such Person or to all or
any material part of its property is instituted without the consent of such
Person and continues undismissed or unstayed for 60 calendar days, or an order
for relief is entered in any such proceeding; or

(g)           Inability
to Pay Debts; Attachment.  (i) Any
Loan Party or any of its Subsidiaries becomes unable or admits in writing its
inability or fails generally to pay its debts as they become due, or (ii) any
writ or warrant of attachment or execution or similar process is issued or
levied against all or any material part of the property of any such Person and
is not released, vacated or fully bonded within 30 days after its issue or
levy; or

(h)           Judgments.  There is entered against any Loan Party or
any of its Subsidiaries (i) a final judgment or order for the payment of
money in an aggregate amount exceeding the Threshold Amount (to the extent not
covered by independent third-party insurance as to which the insurer does not
dispute coverage), or (ii) any one or more non-monetary final judgments that
have, or could reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect and, in either case, (A) enforcement
proceedings are commenced by any creditor upon such judgment or order, or (B)
there is a period of 10 consecutive days during which a stay of enforcement of
such judgment, by reason of a pending appeal or otherwise, is not in effect; or

(i)            ERISA.  (i) An ERISA Event occurs with respect to a
Pension Plan or Multiemployer Plan which has resulted or could reasonably be
expected to result in liability of the Borrower under Title IV of ERISA to the
Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess
of the Threshold Amount, or (ii) the Borrower or any ERISA Affiliate fails to
pay when due, after the expiration of any applicable grace period, any
installment payment with respect to its withdrawal liability under Section 4201
of ERISA under a Multiemployer Plan in an aggregate amount in excess of the
Threshold Amount; or

(j)            Invalidity
of Loan Documents.  Any provision of
any Loan Document, at any time after its execution and delivery and for any
reason other than as expressly permitted hereunder or thereunder or
satisfaction in full of all the Obligations, ceases to be in full force and
effect; or the Borrower or any other Person contests in any manner the validity
or enforceability of any provision of any Loan Document; or any Loan Party
denies that it has any or further liability or obligation under any Loan
Document, or purports to revoke, terminate or rescind any provision of any Loan
Document; or

(k)           Change
of Control.  There occurs any Change
of Control.

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8.02        Remedies Upon Event of Default.

If
any Event of Default occurs and is continuing, the Administrative Agent shall,
at the request of, or may, with the consent of, the Requisite Lenders, take any
or all of the following actions:

(a)           declare
the commitment of each Lender to make Loans to be terminated, whereupon such
commitments and obligation shall be terminated;

(b)           declare
the unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any
other Loan Document to be immediately due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby expressly
waived by the Borrower; and

(c)           exercise
on behalf of itself and the Lenders all rights and remedies available to it and
the Lenders under the Loan Documents;

provided, however, that upon the occurrence of an
Event of Default pursuant to Sections 8.01(f) or (g) or the
occurrence of an actual or deemed entry of an order for relief with respect to
the Borrower under the Bankruptcy Code of the United States, the obligation of
each Lender to make Loans shall automatically terminate, the unpaid principal
amount of all outstanding Loans and all interest and other amounts as aforesaid
shall automatically become due and payable without further act of the Administrative
Agent or any Lender.

8.03        Application of Funds.

After
the exercise of remedies provided for in Section 8.02 (or after the
Loans have automatically become immediately due and payable as set forth in the
proviso to Section 8.02), any amounts received on account of the
Obligations shall be applied by the Administrative Agent in the following
order:

First, to payment of that portion of the Obligations
constituting fees, indemnities, expenses and other amounts (including fees,
charges and disbursements of counsel to the Administrative Agent and amounts
payable under Article III) payable to the Administrative Agent in its
capacity as such;

Second, to payment of that portion of the Obligations
constituting fees, indemnities and other amounts (other than principal and
interest) payable to the Lenders (including fees, charges and disbursements of
counsel to the respective Lenders and amounts payable under Article III),
ratably among them in proportion to the amounts described in this clause Second
payable to them;

Third, to payment of that portion of the Obligations
constituting accrued and unpaid interest on the Loans and other Obligations,
ratably among the Lenders in proportion to the respective amounts described in
this clause Third payable to them;

Fourth, to payment of that portion of the Obligations
constituting unpaid principal of the Loans, ratably among the Lenders in
proportion to the respective amounts described in this clause Fourth
held by them; and

Last, the balance, if any, after all of the Obligations
have been indefeasibly paid in full, to the Borrower or as otherwise required
by Law.

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ARTICLE IX

ADMINISTRATIVE AGENT

9.01        Appointment and Authority.

Each
of the Lenders hereby irrevocably appoints Bank of America to act on its behalf
as the Administrative Agent hereunder and under the other Loan Documents and
authorizes the Administrative Agent to take such actions on its behalf and to
exercise such powers as are delegated to the Administrative Agent by the terms
hereof or thereof, together with such actions and powers as are reasonably
incidental thereto.  The provisions of
this Article are solely for the benefit of the Administrative Agent and the
Lenders, and the Borrower shall not have rights as a third party beneficiary of
any of such provisions.

9.02        Rights as a Lender.

The
Person serving as the Administrative Agent hereunder shall have the same rights
and powers in its capacity as a Lender as any other Lender and may exercise the
same as though it were not the Administrative Agent and the term “Lender” or “Lenders”
shall, unless otherwise expressly indicated or unless the context otherwise
requires, include the Person serving as the Administrative Agent hereunder in
its individual capacity.  Such Person and
its Affiliates may accept deposits from, lend money to, act as the financial
advisor or in any other advisory capacity for and generally engage in any kind
of business with the Borrower or any Subsidiary or other Affiliate thereof as
if such Person were not the Administrative Agent hereunder and without any duty
to account therefor to the Lenders.

9.03        Exculpatory Provisions.

The
Administrative Agent shall not have any duties or obligations except those
expressly set forth herein and in the other Loan Documents.  Without limiting the generality of the
foregoing, the Administrative Agent:

(a)           shall not be subject to any fiduciary
or other implied duties, regardless of whether a Default has occurred and is
continuing;

(b)           shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby or by the other Loan Documents
that the Administrative Agent is required to exercise as directed in writing by
the Requisite Lenders (or such other number or percentage of the Lenders as
shall be expressly provided for herein or in the other Loan Documents), provided
that the Administrative Agent shall not be required to take any action that, in
its opinion or the opinion of its counsel, may expose the Administrative Agent
to liability or that is contrary to any Loan Document or applicable law; and

(c)           shall not, except as expressly set
forth herein and in the other Loan Documents, have any duty to disclose, and
shall not be liable for the failure to disclose, any information relating to
the Borrower or any of its Affiliates that is communicated to or obtained by
the Person serving as the Administrative Agent or any of its Affiliates in any
capacity.

The
Administrative Agent shall not be liable for any action taken or not taken by
it (i) with the consent or at the request of the Requisite Lenders (or such
other number or percentage of the Lenders as shall be necessary, or as the
Administrative Agent shall believe in good faith shall be necessary, under the

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circumstances
as provided in Sections 10.01 and 8.02) or (ii) in the absence of
its own gross negligence or willful misconduct. 
The Administrative Agent shall be deemed not to have knowledge of any
Default unless and until notice describing such Default is given to the Administrative
Agent by the Borrower or a Lender.

The
Administrative Agent shall not be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made in or in
connection with this Agreement or any other Loan Document, (ii) the contents of
any certificate, report or other document delivered hereunder or thereunder or
in connection herewith or therewith, (iii) the performance or observance of any
of the covenants, agreements or other terms or conditions set forth herein or
therein or the occurrence of any Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any
other agreement, instrument or document or (v) the satisfaction of any
condition set forth in Article IV or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the
Administrative Agent.

9.04        Reliance by Administrative Agent.

The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing (including any electronic
message, Internet or intranet website posting or other distribution) believed
by it to be genuine and to have been signed, sent or otherwise authenticated by
the proper Person.  The Administrative
Agent also may rely upon any statement made to it orally or by telephone and
believed by it to have been made by the proper Person, and shall not incur any
liability for relying thereon.  In
determining compliance with any condition hereunder to the making of a Loan
that by its terms must be fulfilled to the satisfaction of a Lender, the
Administrative Agent may presume that such condition is satisfactory to such
Lender unless the Administrative Agent shall have received notice to the
contrary from such Lender prior to the making of such Loan.  The Administrative Agent may consult with
legal counsel (who may be counsel for the Borrower), independent accountants
and other experts selected by it, and shall not be liable for any action taken
or not taken by it in accordance with the advice of any such counsel,
accountants or experts.

9.05        Delegation of Duties.

The
Administrative Agent may perform any and all of its duties and exercise its
rights and powers hereunder or under any other Loan Document by or through any
one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such
sub-agent may perform any and all of its duties and exercise its rights and
powers by or through their respective Related Parties.  The exculpatory provisions of this Article
shall apply to any such sub-agent and to the Related Parties of the Administrative
Agent and any such sub-agent, and shall apply to their respective activities in
connection with the syndication of the credit facilities provided for herein as
well as activities as Administrative Agent.

9.06        Resignation of Administrative Agent.

The
Administrative Agent may at any time give notice of its resignation to the
Lenders and the Borrower.  Upon receipt
of any such notice of resignation, the Requisite Lenders shall have the right,
in consultation with the Borrower, to appoint a successor, which shall be a
bank with an office in the United States, or an Affiliate of any such bank with
an office in the United States.  If no
such successor shall have been so appointed by the Requisite Lenders and shall
have accepted such appointment within 30 days after the retiring Administrative
Agent gives notice of its resignation, then the retiring Administrative Agent
may on behalf of the Lenders, appoint a successor Administrative Agent meeting

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the
qualifications set forth above; provided that if the Administrative
Agent shall notify the Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become
effective in accordance with such notice and (1) the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder and under the
other Loan Documents and (2) all payments, communications and determinations provided
to be made by, to or through the Administrative Agent shall instead be made by
or to each Lender directly, until such time as the Requisite Lenders appoint a
successor Administrative Agent as provided for above in this Section.  Upon the acceptance of a successor’s appointment
as Administrative Agent hereunder, such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring
(or retired) Administrative Agent, and the retiring Administrative Agent shall
be discharged from all of its duties and obligations hereunder or under the
other Loan Documents (if not already discharged therefrom as provided above in
this Section).  The fees payable by the
Borrower to a successor Administrative Agent shall be the same as those payable
to its predecessor unless otherwise agreed between the Borrower and such
successor.  After the retiring
Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Article and Section 10.04 shall
continue in effect for the benefit of such retiring Administrative Agent, its
sub-agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while the retiring Administrative Agent
was acting as Administrative Agent.

9.07        Non-Reliance on Administrative Agent
and Other Lenders.

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

9.08        No Other Duties, Etc.

Anything
herein to the contrary notwithstanding, none of the Arrangers, Bookrunners,
Syndication Agent or Documentation Agents listed on the cover page hereof shall
have any powers, duties or responsibilities under this Agreement or any of the
other Loan Documents, except in its capacity, as applicable, as the
Administrative Agent or a Lender hereunder.

9.09        Administrative Agent May File Proofs
of Claim.

In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Borrower, the Administrative Agent (irrespective of
whether the principal of any Loan shall then be due and payable as herein
expressed or by declaration or otherwise and irrespective of whether the
Administrative Agent shall have made any demand on the Borrower) shall be entitled
and empowered, by intervention in such proceeding or otherwise:

(a)           to file and prove a claim for the
whole amount of the principal and interest owing and unpaid in respect of the
Loans and all other Obligations that are owing and unpaid and to file such
other documents as may be necessary or advisable in order to have the claims of
the Lenders and the Administrative Agent (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Lenders
and the Administrative Agent and their respective agents and counsel and all
other amounts due the Lenders  and the
Administrative Agent under Sections 2.10 and 10.04) allowed in
such judicial proceeding; and

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(b)           to collect and receive any monies or
other property payable or deliverable on any such claims and to distribute the
same;

and
any custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Lender to make such payments to the Administrative Agent and, in the event that
the Administrative Agent shall consent to the making of such payments directly
to the Lenders, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the Administrative
Agent and its agents and counsel, and any other amounts due the Administrative
Agent under Sections 2.10 and 10.04.

Nothing
contained herein shall be deemed to authorize the Administrative Agent to
authorize or consent to or accept or adopt on behalf of any Lender any plan of
reorganization, arrangement, adjustment or composition affecting the
Obligations or the rights of any Lender or to authorize the Administrative
Agent to vote in respect of the claim of any Lender in any such proceeding.

ARTICLE X

MISCELLANEOUS

10.01      Amendments, Etc.

No
amendment or waiver of any provision of this Agreement or any other Loan
Document, and no consent to any departure by the Borrower therefrom, shall be
effective unless in writing signed by the Requisite Lenders and the Borrower,
and acknowledged by the Administrative Agent, and each such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given; provided, however, that no such amendment,
waiver or consent shall:

(a)           extend or increase the Commitment of
any Lender (or reinstate any Commitment terminated pursuant to Section 8.02)
without the written consent of such Lender;

(b)           postpone any date fixed by this
Agreement or any other Loan Document for any payment or mandatory prepayment of
principal, interest, fees or other amounts due to the Lenders (or any of them)
hereunder or under any other Loan Document without the written consent of each
Lender directly affected thereby;

(c)           reduce the principal of, or the rate
of interest specified herein on, any Loan, or (subject to clause (iv) of the
second proviso to this Section 10.01) any fees or other amounts payable
hereunder (including pursuant to Section 2.06) or under any other Loan
Document without the written consent of each Lender directly affected thereby; provided,
however, that only the consent of the Requisite Lenders shall be
necessary to amend the definition of “Default Rate” or to waive any obligation
of the Borrower to pay interest at the Default Rate;

(d)           change Section 2.14 or Section
8.03 in a manner that would alter the pro rata sharing of payments required
thereby without the written consent of each Lender;

(e)           change any provision of this Section
or the definition of “Requisite Lenders” or any other provision hereof
specifying the number or percentage of Lenders required to amend, waive or
otherwise modify any rights hereunder or make any determination or grant any
consent hereunder, without the written consent of each Lender; or

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(f)            release all or substantially all of
the Guarantors from their Guarantee without the written consent of each Lender;

and
provided, further, that (i) no amendment, waiver or consent
shall, unless in writing and signed by the Administrative Agent in addition to
the Lenders required above, affect the rights or duties of the Administrative
Agent under this Agreement or any other Loan Document and (ii) the Fee
Letter may be amended, or rights or privileges thereunder waived, in a writing
executed only by the parties thereto. 
Notwithstanding anything to the contrary herein, no Defaulting Lender
shall have any right to approve or disapprove any amendment, waiver or consent
hereunder, except that the Commitment of such Lender may not be increased or
extended without the consent of such Lender.

Notwithstanding
the fact that the consent of all the Lenders is required in certain circumstances
as set forth above, (x) each Lender is entitled to vote as such Lender sees fit
on any reorganization plan that affects the Loans and each Lender acknowledges
that the provisions of Section 1126(c) of the Bankruptcy Code supersede the
unanimous consent provisions set forth herein and (y) the Requisite Lenders may
consent to allow the Borrower to use cash collateral in the context of a
bankruptcy or insolvency proceeding.

10.02      Notices; Effectiveness; Electronic
Communication.

(a)           Notices Generally.  Except in the case of notices and other
communications expressly permitted to be given by telephone (and except as provided
in subsection (b) below), all notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by telecopier as
follows, and all notices and other communications expressly permitted hereunder
to be given by telephone shall be made to the applicable telephone number, as
follows:

(i)      if
to the Borrower or the Administrative Agent, to the address, telecopier number,
electronic mail address or telephone number specified for such Person on Schedule
10.02; and

(ii)     if
to any other Lender, to the address, telecopier number, electronic mail address
or telephone number specified in its Administrative Questionnaire.

Notices
sent by hand or overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices sent by
telecopier shall be deemed to have been given when sent (except that, if not
given during normal business hours for the recipient, shall be deemed to have
been given at the opening of business on the next business day for the
recipient).  Notices delivered through
electronic communications to the extent provided in subsection (b) below, shall
be effective as provided in such subsection (b).

(b)           Electronic Communications.  Notices and other communications to the
Lenders hereunder may be delivered or furnished by electronic communication (including
e-mail and Internet or intranet websites) pursuant to procedures approved by
the Administrative Agent, provided that the foregoing shall not apply to
notices to any Lender if such Lender has notified the Administrative Agent that
it is incapable of receiving notices under such Article by electronic
communication.  The Administrative Agent
or the Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may
be limited to particular notices or communications.

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Unless
the Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by
the “return receipt requested” function, as available, return e-mail or other
written acknowledgement), provided that if such notice or other communication
is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on
the next business day for the recipient, and (ii) notices or communications
posted to an Internet or intranet website shall be deemed received upon the
deemed receipt by the intended recipient at its e-mail address as described in
the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

(c)           Change of Address, Etc.  Each of the Borrower and the Administrative
Agent may change its address, telecopier or telephone number for notices and
other communications hereunder by notice to the other parties hereto.  Each other Lender may change its address,
telecopier or telephone number for notices and other communications hereunder
by notice to the Borrower and the Administrative Agent.

(d)           Reliance by Administrative Agent
and Lenders.  The Administrative
Agent and the Lenders shall be entitled to rely and act upon any notices
(including telephonic Bridge Loan Notices) purportedly given by or on behalf of
the Borrower even if (i) such notices were not made in a manner specified
herein, were incomplete or were not preceded or followed by any other form of notice
specified herein, or (ii) the terms thereof, as understood by the recipient,
varied from any confirmation thereof. 
The Borrower shall indemnify the Administrative Agent, each Lender and
the Related Parties of each of them from all losses, costs, expenses and
liabilities resulting from the reliance by such Person on each notice purportedly
given by or on behalf of the Borrower. 
All telephonic notices to and other telephonic communications with the
Administrative Agent may be recorded by the Administrative Agent, and each of
the parties hereto hereby consents to such recording.

10.03      No Waiver; Cumulative Remedies.

No
failure by any Lender or the Administrative Agent to exercise, and no delay by
any such Person in exercising, any right, remedy, power or privilege hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of
any right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or
privilege.  The rights, remedies, powers
and privileges herein provided are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by law.

10.04      Expenses; Indemnity; Damage Waiver.

(a)           Costs and Expenses.  The Borrower shall pay (i) all reasonable
out-of-pocket expenses incurred by the Agents and their Affiliates (including
the reasonable fees, charges and disbursements of counsel for the
Administrative Agent), in connection with the syndication of the credit facilities
provided for herein, due diligence, the preparation, negotiation, execution,
delivery and administration of this Agreement and the other Loan Documents or
any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated) and (ii) all out-of-pocket expenses incurred by the Administrative
Agent or any Lender (including the fees, charges and disbursements of any
counsel for the Administrative Agent or any Lender), in connection with the
enforcement or protection of its rights (A) in connection with this Agreement
and the other Loan Documents, including its rights under this Section, or (B)
in connection with the Loans made hereunder, including all such out-of-pocket
expenses incurred during any workout, restructuring or negotiations in respect
of such Loans.

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(b)           Indemnification by the Borrower.  The Borrower shall indemnify the Administrative
Agent (and any sub-agent thereof), each Lender, the Agents and their Affiliates
and each Related Party of any of the foregoing Persons (each such Person being
called an “Indemnitee”) against, and hold each Indemnitee harmless from,
any and all losses, claims, damages, liabilities and related expenses
(including the fees, charges and disbursements of any counsel for any
Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by
any third party or by the Borrower arising out of, in connection with, or as a
result of (i) the execution or delivery of this Agreement, any other Loan
Document or any agreement or instrument contemplated hereby or thereby, the performance
by the parties hereto of their respective obligations hereunder or thereunder
or the consummation of the transactions contemplated hereby or thereby, (ii)
any actual or alleged presence or release of Hazardous Materials on or from any
property owned or operated by the Borrower or any of its Subsidiaries, or any
Environmental Liability related in any way to the Borrower or any of its
Subsidiaries, or (iii) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by a third party or by the
Borrower, and regardless of whether any Indemnitee is a party thereto; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses (x) are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee or (y) result from a claim brought by the Borrower against an
Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder
or under any other Loan Document, if the Borrower has obtained a final and nonappealable
judgment in its favor on such claim as determined by a court of competent jurisdiction.

(c)           Reimbursement by Lenders.  To the extent that the Borrower for any
reason fails to indefeasibly pay any amount required under subsection (a) or
(b) of this Section to be paid by it to the Administrative Agent (or any
sub-agent thereof) or any Related Party of any of the foregoing and without
relieving the Borrower of its obligations with respect thereto, each Lender severally
agrees to pay to the Administrative Agent (or any such sub-agent) or such
Related Party, as the case may be, such Lender’s Applicable Percentage
(determined as of the time that the applicable unreimbursed expense or
indemnity payment is sought) of such unpaid amount, provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the
Administrative Agent (or any such sub-agent), or against any Related Party of
any of the foregoing acting for the Administrative Agent (or any such
sub-agent) in connection with such capacity. 
The obligations of the Lenders under this subsection (c) are subject to
the provisions of Section 2.13(d).

(d)           Waiver of Consequential Damages,
Etc.  To the fullest extent permitted
by applicable law, the Borrower shall not assert, and hereby waives, any claim
against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement, any
other Loan Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Loan or the use of the
proceeds thereof.  No Indemnitee referred
to in subsection (b) above shall be liable for any damages arising from the use
by unintended recipients of any information or other materials distributed by
it through telecommunications, electronic or other information transmission
systems in connection with this Agreement or the other Loan Documents or the
transactions contemplated hereby or thereby.

(e)           Payments.  All amounts due under this Section shall be
payable not later than ten Business Days after demand therefor.

(f)            Survival.  The agreements in this Section shall survive
the resignation of the Administrative Agent, the replacement of any Lender, the
termination of the Commitments and the repayment, satisfaction or discharge of
all the other Obligations.

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10.05      Payments Set Aside.

To
the extent that any payment by or on behalf of the Borrower is made to the
Administrative Agent or any Lender, or the Administrative Agent or any Lender
exercises its right of setoff, and such payment or the proceeds of such setoff
or any part thereof is subsequently invalidated, declared to be fraudulent or
preferential, set aside or required (including pursuant to any settlement
entered into by the Administrative Agent or such Lender in its discretion) to
be repaid to a trustee, receiver or any other party, in connection with any
proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of
such recovery, the obligation or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such setoff had not occurred, and (b) each Lender
severally agrees to pay to the Administrative Agent upon demand its applicable
share (without duplication) of any amount so recovered from or repaid by the
Administrative Agent, plus interest thereon from the date of such demand to the
date such payment is made at a rate per annum equal to the Federal Funds Rate
from time to time in effect.  The
obligations of the Lenders under clause (b) of the preceding sentence shall
survive the payment in full of the Obligations and the termination of this Agreement.

10.06      Successors and Assigns.

(a)           Successors and Assigns Generally.  The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby, except that neither the
Borrower nor any other Loan Party may assign or
otherwise transfer any of its rights or obligations hereunder without the prior
written consent of the Administrative Agent and each Lender and no Lender may
assign or otherwise transfer any of its rights or obligations hereunder except
(i) to an assignee in accordance with the provisions of subsection (b) of this
Section, (ii) by way of participation in accordance with the provisions of
subsection (d) of this Section, (iii) by way of pledge or assignment of a
security interest subject to the restrictions of subsection (f) of this
Section, or (iv) to an SPC in accordance with the provisions of subsection (h)
of this Section (and any other attempted assignment or transfer by any party
hereto shall be null and void).  Nothing
in this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in subsection (d) of this
Section and, to the extent expressly contemplated hereby, the Related Parties
of each of the Administrative Agent and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

(b)           Assignments by Lenders.  Any Lender may at any time assign to one or
more assignees all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans at the
time owing to it); provided that any such assignment shall be subject to
the following conditions:

(i)      Minimum
Amounts.

(A)          in
the case of an assignment of the entire remaining amount of the assigning
Lender’s Commitment and the Loans at the time owing to it or in the case of an
assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no
minimum amount need be assigned; and

(B)           in
any case not described in subsection (b)(i)(A) of this Section, the aggregate
amount of the Commitment (which for this purpose includes Loans outstanding
thereunder) or, if the Commitment is not then in effect, the principal
outstanding balance of the Loans of the assigning Lender subject to each such
assignment, determined as of

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the date the Assignment and Assumption with respect to such assignment
is delivered to the Administrative Agent or, if “Trade Date” is specified in
the Assignment and Assumption, as of the Trade Date, shall not be less than
$2,500,000 unless each of the Administrative Agent and, so long as no Event of
Default has occurred and is continuing, the Borrower otherwise consents (each
such consent not to be unreasonably withheld or delayed); provided, however,
that concurrent assignments to members of an Assignee Group and concurrent
assignments from members of an Assignee Group to a single assignee (or to an assignee
and members of its Assignee Group) will be treated as a single assignment for
purposes of determining whether such minimum amount has been met.

(ii)     Proportionate
Amounts.  Each partial assignment
shall be made as an assignment of a proportionate part of all the assigning
Lender’s rights and obligations under this Agreement with respect to the Loans
or the Commitment assigned;

(iii)    Required
Consents.  No consent shall be
required for any assignment except to the extent required by subsection (b)(i)(B)
of this Section and, in addition:

(A)          the
consent of the Borrower (such consent not to be unreasonably withheld or
delayed) shall be required unless (1) an Event of Default has occurred and is
continuing at the time of such assignment or (2) such assignment is to a
Lender, an Affiliate of a Lender or an Approved Fund; and

(B)           the
consent of the Administrative Agent (such consent not to be unreasonably
withheld or delayed) shall be required if such assignment is to a Person that
is not a Lender, an Affiliate of such Lender or an Approved Fund with respect
to such Lender.

(iv)    Assignment
and Assumption.  The parties to each
assignment shall execute and deliver to the Administrative Agent an Assignment
and Assumption, together with a processing and recordation fee in the amount of
$3,500; provided, however, that the Administrative Agent may, in
its sole discretion, elect to waive such processing and recordation fee in the
case of any assignment.  The assignee, if
it is not a Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire.

(v)     No
Assignment to the Borrower.  No such
assignment shall be made to the Borrower or any of the Borrower’s Affiliates or
Subsidiaries.

(vi)    No
Assignment to Natural Persons.  No
such assignment shall be made to a natural person.

Subject
to acceptance and recording thereof by the Administrative Agent pursuant to
subsection (c) of this Section, from and after the effective date specified in
each Assignment and Assumption, the Eligible Assignee thereunder shall be a
party to this Agreement and, to the extent of the interest assigned by such
Assignment and Assumption, have the rights and obligations of a Lender under
this Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto) but shall
continue to be entitled to the benefits of Sections 3.01, 3.04, 3.05,
and 10.04 with respect to facts and circumstances occurring prior to the
effective date of such assignment.  Upon
request, the Borrower (at its expense) shall execute and deliver a Note to the
assignee Lender.  Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does
not comply with this subsection shall be treated for purposes of this Agreement
as a sale by such Lender of a participation in such rights and obligations in
accordance with subsection (d) of this Section.

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(c)           Register.  The Administrative Agent, acting solely for
this purpose as an agent of the Borrower, shall maintain at the Administrative
Agent’s Office a copy of each Assignment and Assumption delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the
Commitments of, and principal amounts of the Loans owing to, each Lender pursuant
to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive,
and the Borrower, the Administrative Agent and the Lenders may treat each
Person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for all purposes of this Agreement, notwithstanding notice to
the contrary.  The Register shall be
available for inspection by the Borrower and any Lender (with respect to its
own interest only), at any reasonable time and from time to time upon
reasonable prior notice.

(d)           Participations.  Any Lender may at any time, without the
consent of, or notice to, the Borrower or the Administrative Agent, sell
participations to any Person (other than a natural person or the Borrower or
any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”)
in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans owing
to it; provided that (i) such Lender’s obligations under this
Agreement shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (iii) the Borrower, the Administrative Agent and the Lenders shall
continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement.

Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any  provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, waiver or other
modification described in the first proviso to Section 10.01 that
affects such Participant.  Subject to subsection
(e) of this Section, the Borrower agrees that each Participant shall be
entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to subsection (b) of this Section.  To the extent permitted by law, each Participant
also shall be entitled to the benefits of Section 10.08 as though it were a Lender, provided such
Participant agrees to be subject to Section 2.13 as though it were a
Lender.

(e)           Limitations upon Participant
Rights.  A Participant shall not be
entitled to receive any greater payment under Section 3.01 or 3.04 than the applicable Lender would have been entitled to receive
with respect to the participation sold to such Participant, unless the sale of
the participation to such Participant is made with the Borrower’s prior written
consent.  A Participant that would be a
Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 3.01
unless the Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of the Borrower, to comply with Section
3.01(e) as though it were a Lender.

(f)            Certain Pledges.  Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement
(including under its Note, if any) to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank; provided that no such pledge or assignment shall release such
Lender from any of its obligations hereunder or substitute any such pledgee or
assignee for such Lender as a party hereto.

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(g)           Electronic Execution of
Assignments.  The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be
deemed to include electronic signatures or the keeping of records in electronic
form, each of which shall be of the same legal effect, validity or
enforceability as a manually executed signature or the use of a paper-based
recordkeeping system, as the case may be, to the extent and as provided for in
any applicable law, including the Federal Electronic Signatures in Global and
National Commerce Act, the New York State Electronic Signatures and Records
Act, or any other similar state laws based on the Uniform Electronic
Transactions Act.

(h)           Special Purpose Funding Vehicles.  Notwithstanding anything to the contrary
contained herein, any Lender (a “Granting Lender”) may grant to a
special purpose funding vehicle identified as such in writing from time to time
by the Granting Lender to the Administrative Agent and the Borrower (an “SPC”)
the option to provide all or any part of any Loan that such Granting Lender
would otherwise be obligated to make pursuant to this Agreement; provided
that (i) nothing herein shall constitute a commitment by any SPC to fund any
Loan, and (ii) if an SPC elects not to exercise such option or otherwise fails
to make all or any part of such Loan, the Granting Lender shall be obligated to
make such Loan pursuant to the terms hereof or, if it fails to do so, to make
such payment to the Administrative Agent as is required under Section
2.13(b)(ii).  Each party hereto
hereby agrees that (i) neither the grant to any SPC nor the exercise by any SPC
of such option shall increase the costs or expenses or otherwise increase or
change the obligations of the Borrower under this Agreement (including its
obligations under Section 3.04), (ii) no SPC shall be liable for any
indemnity or similar payment obligation under this Agreement for which a Lender
would be liable, and (iii) the Granting Lender shall for all purposes,
including the approval of any amendment, waiver or other modification of any
provision of any Loan Document, remain the lender of record hereunder.  The making of a Loan by an SPC hereunder
shall utilize the Commitment of the Granting Lender to the same extent, and as
if, such Loan were made by such Granting Lender.  In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior debt of any
SPC, it will not institute against, or join any other Person in instituting
against, such SPC any bankruptcy, reorganization, arrangement, insolvency, or
liquidation proceeding under the laws of the United States or any State thereof.  Notwithstanding anything to the contrary
contained herein, any SPC may (i) with notice to, but without prior consent of
the Borrower and the Administrative Agent and with the payment of a processing
fee in the amount of $3,500 (which processing fee may be waived by the
Administrative Agent in its sole discretion), assign all or any portion of its
right to receive payment with respect to any Loan to the Granting Lender and
(ii) disclose on a confidential basis any non-public information relating to its
funding of Loans to any rating agency, commercial paper dealer or provider of
any surety or Guarantee or credit or liquidity enhancement to such SPC.

(i)            [Intentionally Omitted].

10.07      Treatment of Certain Information;
Confidentiality.

Each
of the Administrative Agent and the Lenders agrees to maintain the confidentiality
of the Information (as defined below), except that Information may be disclosed
(a) to its Affiliates and to its and its Affiliates’ respective partners,
directors, officers, employees, agents, advisors and representatives (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory
authority purporting to have jurisdiction over it (including any
self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) to the extent required by applicable laws or regulations or
by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any other Loan
Document or any action or proceeding relating to this Agreement or any other
Loan Document or the enforcement of rights hereunder or thereunder, (f) subject
to an agreement containing provisions substantially the same as those of this
Section, to (i) any assignee of or Participant in, or any prospective

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assignee
of or Participant in, any of its rights or obligations under this Agreement or
(ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrower and its obligations, (g) with
the consent of the Borrower, (h) to the extent such Information (x) becomes
publicly available other than as a result of a breach of this Section or (y)
becomes available to the Administrative Agent, any Lender, or any of their respective
Affiliates on a nonconfidential basis from a source other than the Borrower
that the Administrative Agent, any such Lender reasonably believes is not bound
by a duty of confidentiality to the Borrower or (i) as reasonably required by any Lender or other Person
providing financing to such Lender (provided such Lenders or other
Persons are advised of the confidential nature of such information and agree to
keep such information confidential).

For
purposes of this Section, “Information” means all information received
from the Borrower or any Subsidiary relating to the Borrower or any Subsidiary
or any of their respective businesses, other than any such information that is
available to the Administrative Agent or any Lender on a nonconfidential basis
prior to disclosure by the Borrower or any Subsidiary, provided that, in
the case of information received from the Borrower or any Subsidiary after the
date hereof, such information is clearly identified at the time of delivery as
confidential.  Any Person required to
maintain the confidentiality of Information as provided in this Section shall
be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such Information
as such Person would accord to its own confidential information.

10.08      Right of Setoff.

If
an Event of Default shall have occurred and be continuing, each Lender and each
of their respective Affiliates is hereby authorized at any time and from time
to time, to the fullest extent permitted by applicable law, to set off and
apply any and all deposits (general or special, time or demand, provisional or
final, in whatever currency) at any time held and other obligations (in
whatever currency) at any time owing by such Lender or any such Affiliate to or
for the credit or the account of the Borrower against any and all of the
obligations of the Borrower now or hereafter existing under this Agreement or
any other Loan Document to such Lender, irrespective of whether or not such
Lender shall have made any demand under this Agreement or any other Loan
Document and although such obligations of the Borrower may be contingent or unmatured
or are owed to a branch or office of such Lender different from the branch or
office holding such deposit or obligated on such indebtedness.  The rights of each Lender and their respective
Affiliates under this Section are in addition to other rights and remedies
(including other rights of setoff) that such Lender or their respective Affiliates
may have.  Each Lender agrees to notify
the Borrower and the Administrative Agent promptly after any such setoff and application,
provided that the failure to give such notice shall not affect the
validity of such setoff and application.

10.09      Interest Rate Limitation.

Notwithstanding
anything to the contrary contained in any Loan Document, the interest paid or
agreed to be paid under the Loan Documents shall not exceed the maximum rate of
non-usurious interest permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender
shall receive interest in an amount that exceeds the Maximum Rate, the excess
interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Borrower. 
In determining whether the interest contracted for, charged, or received
by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any payment
that is not principal as an expense, fee, or premium rather than interest, (b)
exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of
interest throughout the contemplated term of the Obligations hereunder.

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10.10      Counterparts; Integration;
Effectiveness.

This
Agreement may be executed in counterparts (and by different parties hereto in
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract.  This Agreement and the other Loan Documents
constitute the entire contract among the parties relating to the subject matter
hereof and supersede any and all previous agreements and understandings, oral
or written, relating to the subject matter hereof.  Except as provided in Section 4.01,
this Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received
counterparts hereof that, when taken together, bear the signatures of each of
the other parties hereto.  Delivery of an
executed counterpart of a signature page of this Agreement by telecopy shall be
effective as delivery of a manually executed counterpart of this Agreement.

10.11      Survival of Representations and
Warranties.

All
representations and warranties made hereunder and in any other Loan Document or
other document delivered pursuant hereto or thereto or in connection herewith
or therewith shall survive the execution and delivery hereof and thereof.  Such representations and warranties have been
or will be relied upon by the Administrative Agent and each Lender, regardless
of any investigation made by the Administrative Agent or any Lender or on their
behalf and notwithstanding that the Administrative Agent or any Lender may have
had notice or knowledge of any Default at the time of any Credit Extension, and
shall continue in full force and effect as long as any Loan or any other
Obligation hereunder shall remain unpaid or unsatisfied.

10.12      Severability.

If
any provision of this Agreement or the other Loan Documents is held to be
illegal, invalid or unenforceable, (a) the legality, validity and
enforceability of the remaining provisions of this Agreement and the other Loan
Documents shall not be affected or impaired thereby and (b) the parties shall
endeavor in good faith negotiations to replace the illegal, invalid or unenforceable
provisions with valid provisions the economic effect of which comes as close as
possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

10.13      Replacement of Lenders.

If
any Lender requests compensation under Section 3.04, or if the Borrower
is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, if any
Lender is a Defaulting Lender, then the Borrower may, at its sole expense and effort,
upon notice to such Lender and the Administrative Agent, require such Lender to
assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in, and consents required by, Section 10.06), all
of its interests, rights and obligations under this Agreement and the related
Loan Documents to an assignee that shall assume such obligations (which assignee
may be another Lender, if a Lender accepts such assignment), provided
that:

(a)           the Borrower shall have paid to the
Administrative Agent the assignment fee specified in Section 10.06(b);

(b)           such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder
and under the other Loan Documents (including any amounts under Section 3.05)
from the assignee (to the extent of such outstanding principal and accrued interest
and fees) or the Borrower (in the case of all other amounts);

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(c)           in the case of any such assignment
resulting from a claim for compensation under Section 3.04 or payments
required to be made pursuant to Section 3.01, such assignment will result
in a reduction in such compensation or payments thereafter; and

(d)           such assignment does not conflict
with applicable Laws.

A
Lender shall not be required to make any such assignment or delegation if,
prior thereto, as a result of a waiver by such Lender or otherwise, the
circumstances entitling the Borrower to require such assignment and delegation
cease to apply.

10.14      Governing Law; Jurisdiction; Etc.

(a)           GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION.

(b)           SUBMISSION TO JURISDICTION.  EACH LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED
STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE
COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT
OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD
AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, IN SUCH FEDERAL COURT. 
EACH OF THE PARTIES HERETO AGREES 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 AGREEMENT OR IN ANY OTHER
LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY
LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ITS PROPERTIES IN
THE COURTS OF ANY JURISDICTION.

(c)           WAIVER OF VENUE.  EACH LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY
COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

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(d)           SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO
SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE
RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
APPLICABLE LAW.

10.15      Waiver of Jury Trial.

EACH
PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

10.16      No Advisory or Fiduciary Responsibility.

In
connection with all aspects of each transaction contemplated hereby, the
Borrower and each other Loan Party acknowledges and agrees, and acknowledges
its Affiliates’ understanding, that: (i) the credit facilities provided for
hereunder and any related arranging or other services in connection therewith
(including in connection with any amendment, waiver or other modification
hereof or of any other Loan Document) are an arm’s-length commercial
transaction between the Borrower, each other Loan Party and their respective
Affiliates, on the one hand, and the Administrative Agent and each Arranger, on
the other hand, and the Borrower and each other Loan Party is capable of
evaluating and understanding and understands and accepts the terms, risks and
conditions of the transactions contemplated hereby and by the other Loan
Documents (including any amendment, waiver or other modification hereof or
thereof); (ii) in connection with the process leading to such transaction, the
Administrative Agent and each Arranger is and has been acting solely as a
principal and is not the financial advisor, agent or fiduciary, for the Borrower,
any other Loan Party or any of their respective Affiliates, stockholders,
creditors or employees or any other Person; (iii) neither the Administrative
Agent nor any Arranger has assumed or will assume an advisory, agency or
fiduciary responsibility in favor of the Borrower or any other Loan Party with
respect to any of the transactions contemplated hereby or the process leading
thereto, including with respect to any amendment, waiver or other modification
hereof or of any other Loan Document (irrespective of whether the
Administrative Agent or any Arranger has advised or is currently advising the
Borrower, any other Loan Party or any of their respective Affiliates on other
matters) and neither the Administrative Agent nor any Arranger has any
obligation to the Borrower, any other Loan Party or any of their respective
Affiliates with respect to the transactions contemplated hereby except those
obligations expressly set forth herein and in the other Loan Documents; (iv)
the Administrative Agent and the Arrangers and their respective Affiliates may
be engaged in a broad range of transactions that involve interests that differ
from those of the Borrower, the other Loan Parties and their respective
Affiliates, and neither the Administrative Agent nor any Arranger has any
obligation to disclose any of such interests by virtue of any advisory, agency
or fiduciary relationship; and (v) the Administrative Agent and the Arrangers
have not provided and will not provide any legal, accounting, regulatory or tax
advice with respect to any of the transactions contemplated hereby (including
any amendment, waiver or other modification hereof or of any other Loan
Document) and each of the Borrower and the other Loan Parties has consulted its
own legal, accounting, regulatory and tax advisors to the extent it has deemed
appropriate.  Each of the Borrower and
the other Loan Parties hereby waives and releases, to the fullest extent
permitted by law, any claims that it may have against the Administrative Agent
and the Arrangers with respect to any breach or alleged breach of agency or
fiduciary duty.

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10.17      USA Patriot Act Notice.

Each
Lender that is subject to the Patriot Act (as hereinafter defined) and the
Administrative Agent (for itself and not on behalf of any Lender) hereby
notifies the Borrower that pursuant to the requirements of the USA Patriot Act
(Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot
Act”), it is required to obtain, verify and record information that
identifies the Borrower, which information includes the name and address of the
Borrower and other information that will allow such Lender or the Administrative
Agent, as applicable, to identify the Borrower in accordance with the Patriot
Act.

10.18      Delivery of Signature Page.

Each
Lender to become a party to this Agreement on the date hereof shall do so by
delivering to the Administrative Agent a counterpart of this Agreement duly
executed by such Lender.

ARTICLE XI

GUARANTY

11.01      The Guaranty.

Each
of the Guarantors hereby jointly and severally guarantees to each Lender, each
Affiliate of a Lender that enters into a Swap Contract or a Treasury Management
Agreement, and the Administrative Agent as hereinafter provided, as primary
obligor and not as surety, the prompt payment of the Obligations in full when
due (whether at stated maturity, as a mandatory prepayment, by acceleration, as
a mandatory cash collateralization or otherwise) strictly in accordance with
the terms thereof.  The Guarantors hereby
further agree that if any of the Obligations are not paid in full when due
(whether at stated maturity, as a mandatory prepayment, by acceleration as a
mandatory cash collateralization or otherwise), the Guarantors will, jointly
and severally, promptly pay the same, without any demand or notice whatsoever,
and that in the case of any extension of time of payment or renewal of any of
the Obligations, the same will be promptly paid in full when due (whether at
extended maturity, as a mandatory prepayment, by acceleration, as a mandatory
cash collateralization or otherwise) in accordance with the terms of such
extension or renewal.

Notwithstanding
any provision to the contrary herein or in any other of the Loan Documents or
Swap Contracts or Treasury Management Agreements, the obligations of each
Guarantor under this Agreement and the other Loan Documents shall be limited to
an aggregate amount equal to the largest amount that would not render such
obligations subject to avoidance under the Debtor Relief Laws or any comparable
provisions of any applicable state law.

11.02      Obligations Unconditional.

The
obligations of the Guarantors under Section 11.01 are joint and several,
absolute and unconditional, irrespective of the value, genuineness, validity,
regularity or enforceability of any of the Loan Documents, Swap Contracts or
Treasury Management Agreements, or any other agreement or instrument referred
to therein, or any substitution, release, impairment or exchange of any other
guarantee of or security for any of the Obligations, and, to the fullest extent
permitted by applicable law,

 67
 

 

irrespective
of any other circumstance whatsoever which might otherwise constitute a legal
or equitable discharge or defense of a surety or guarantor (other than the
payment of the Obligations), it being the intent of this Section 11.02
that the obligations of the Guarantors hereunder shall be absolute and
unconditional under any and all circumstances (other than the payment of the
Obligations).  Each Guarantor agrees that
such Guarantor shall not exercise any right of subrogation, indemnity,
reimbursement or contribution against the Borrower or any other Guarantor for
amounts paid under this Article XI until such time as the Obligations
have been fully satisfied.  Without
limiting the generality of the foregoing, it is agreed that, to the fullest
extent permitted by law, the occurrence of any one or more of the following
shall not alter or impair the liability of any Guarantor hereunder which shall
remain absolute and unconditional as described above:

(a)           at any time or from time to time,
without notice to any Guarantor, the time for any performance of or compliance
with any of the Obligations shall be extended, or such performance or
compliance shall be waived;

(b)           any of the acts mentioned in any of
the provisions of any of the Loan Documents, any Swap Contract or any Treasury
Management Agreement between any Lender and any Affiliate of a Lender, or any
other agreement or instrument referred to in the Loan Documents or such Swap
Contracts shall be done or omitted;

(c)           the maturity of any of the
Obligations shall be accelerated, or any of the Obligations shall be modified,
supplemented or amended in any respect, or any right under any of the Loan
Documents, any Swap Contract or any Treasury Management Agreement between any
Lender and any Affiliate of a Lender, or any other agreement or instrument
referred to in the Loan Documents or such Swap Contracts or such Treasury
Management Agreements shall be waived or any other guarantee of any of the
Obligations or any security therefor shall be released, impaired or exchanged
in whole or in part or otherwise dealt with;

(d)           any Lien granted to, or in favor of,
the Administrative Agent or any Lender or Lenders as security for any of the
Obligations shall fail to attach or be perfected; or

(e)           any of the Obligations shall be
determined to be void or voidable (including, without limitation, for the
benefit of any creditor of any Guarantor) or shall be subordinated to the
claims of any Person (including, without limitation, any creditor of any
Guarantor).

With
respect to its obligations hereunder, each Guarantor hereby expressly waives
diligence, presentment, demand of payment, protest and all notices whatsoever,
any law, regulation, decree or order of any jurisdiction or any event affecting
any term of the Obligations and any requirement that the Administrative Agent
or any Lender exhaust any right, power or remedy or proceed against any Person
under any of the Loan Documents, any Swap Contract or any Treasury Management
Agreement between any Consolidated Party and any Lender, or any Affiliate of a
Lender, or any other agreement or instrument referred to in the Loan Documents
or such Swap Contracts or such Treasury Management Agreements, or against any
other Person under any other guarantee of, or security for, any of the
Obligations.

11.03      Reinstatement.

The
obligations of the Guarantors under this Article XI shall be
automatically reinstated if and to the extent that for any reason any payment
by or on behalf of any Person in respect of the Obligations is rescinded or
must be otherwise restored by any holder of any of the Obligations, whether as
a result of any proceedings in bankruptcy or reorganization or otherwise, and
each Guarantor agrees that it will

 68
 

 

indemnify
the Administrative Agent and each Lender within 10 days of written demand
(together with back up documentation supporting such reimbursement) for all
reasonable costs and expenses (including, without limitation, reasonable fees
and expenses of counsel) incurred by the Administrative Agent or such Lender in
connection with such rescission or restoration, including any such costs and
expenses incurred in defending against any claim alleging that such payment
constituted a preference, fraudulent transfer or similar payment under any bankruptcy,
insolvency or similar law.

11.04      Certain Additional Waivers.

Each
Guarantor agrees that such Guarantor shall have no right of recourse to
security for the Obligations, except through the exercise of rights of
subrogation pursuant to Section 11.02 and through the exercise of rights
of contribution pursuant to Section 11.06.

11.05      Remedies.

The
Guarantors agree that, to the fullest extent permitted by law, as between the
Guarantors, on the one hand, and the Administrative Agent and the Lenders, on
the other hand, the Obligations may be declared to be forthwith due and payable
as provided in Section 8.02 (and shall be deemed to have become
automatically due and payable in the circumstances provided in said Section
8.02) for purposes of Section 11.01 notwithstanding any stay,
injunction or other prohibition preventing such declaration (or preventing the
Obligations from becoming automatically due and payable) as against any other
Person and that, in the event of such declaration (or the Obligations being deemed
to have become automatically due and payable), the Obligations (whether or not
due and payable by any other Person) shall forthwith become due and payable by
the Guarantors for purposes of Section 11.01.

11.06      Rights of Contribution.

The
Guarantors hereby agree as among themselves that, in connection with payments
made hereunder, each Guarantor shall have a right of contribution from each
other Guarantor in accordance with applicable Law.  Such contribution rights shall be subordinate
and subject in right of payment to the Obligations until such time as the
Obligations have been fully satisfied, and none of the Guarantors shall
exercise any such contribution rights relating to payments made hereunder until
the Obligations have been fully satisfied.

11.07      Guarantee of Payment; Continuing
Guarantee.

The
guarantee in this Article XI is a guaranty of payment and not of
collection, is a continuing guarantee, and shall apply to all Obligations
whenever arising.

 69

 

Each
of the parties hereto have caused a counterpart of this Agreement to be duly
executed as of the date first above written.

	
   

  	
  HEALTH CARE PROPERTY INVESTORS, INC.,

  
	
   

  	
  as Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward J. Henning

  
	
   

  	
  Name:

  	
  Edward J. Henning

  
	
   

  	
  Title:

  	
  Authorized Signatory

  

 

 

 

	
  

  	
  BANK OF AMERICA, N.A.,

  as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Angela Lau

  
	
   

  	
   

  	
  Name:

  	
  Angela Lau

  
	
   

  	
   

  	
  Title:

  	
  Asistant Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  BANK OF AMERICA, N.A.,

  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joseph L. Corah

  
	
   

  	
   

  	
  Name:

  	
  Joseph L. Corah

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANC OF AMERICA SECURITIES LLC,

  as a Joint Lead Arranger and Joint Bookrunner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert N. Allen

  
	
   

  	
   

  	
  Name:

  	
  Robert N. Allen

  
	
   

  	
   

  	
  Title:

  	
  Principal

  

 

 

 

	
  

  	
  UBS LOAN FINANCE LLC,

  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richart L. Taviow

  
	
   

  	
   

  	
  Name:

  	
  Richart L. Taviow

  
	
   

  	
   

  	
  Title:

  	
  Director

  Banking Products

  Services, US

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Irja R. Otsa

  
	
   

  	
   

  	
  Name:

  	
  Irja R. Otsa

  
	
   

  	
   

  	
  Title:

  	
  Associate Director

  Banking Products

  Services, US

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UBS SECURITIES LLC,

  as a Joint Lead Arranger, Joint Bookrunner and Syndication Agent

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richart L. Taviow

  
	
   

  	
   

  	
  Name:

  	
  Richart L. Taviow

  
	
   

  	
   

  	
  Title:

  	
  Director

  Banking Products

  Services, US

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Irja R. Otsa

  
	
   

  	
   

  	
  Name:

  	
  Irja R. Otsa

  
	
   

  	
   

  	
  Title:

  	
  Associate Director

  Banking Products

  Services, US

  

 

 

 

	
  

  	
  JPMORGAN CHASE BANK, N.A.,

  as a Co-Documentation Agent and Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Susan M. Tate

  
	
   

  	
  Name:

  	
  Susan M. Tate

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  J.P. MORGAN SECURITIES INC.,

  as Joint Bookrunner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John J Regan Jr

  
	
   

  	
   

  	
  Name:

  	
  John J Regan Jr

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  

 

 

 

	
  

  	
  BARCLAYS BANK PLC,

  as Co-Documentation Agent and a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas Bernegger

  
	
   

  	
   

  	
  Name:

  	
  Douglas Bernegger

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BARCLAYS CAPITAL,

  as Joint Bookrunner

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas Bernegger

  
	
   

  	
   

  	
  Name:

  	
  Douglas Bernegger

  
	
   

  	
   

  	
  Title:

  	
  Director

  

 

 

 

	
  

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION,

  as Co-Documentation Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James S. Conville

  
	
   

  	
   

  	
  Name:

  	
  James S. Conville

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice PresidentExhibit
10.2

 

Published CUSIP
Number:          

$2,700,000,000

CREDIT AGREEMENT

Dated as of October 5, 2006

among

HEALTH CARE PROPERTY INVESTORS, INC.,

as Borrower

THE GUARANTORS PARTY HERETO FROM TIME TO TIME,

THE LENDERS PARTY HERETO FROM TIME TO TIME

and

BANK OF AMERICA, N.A.,

as Administrative Agent, Swing Line Lender and L/C Issuer,

and

BANC OF AMERICA SECURITIES LLC and

UBS SECURITIES LLC,

as Joint Lead Arrangers

and

BANC OF AMERICA SECURITIES LLC,

UBS SECURITIES LLC,

J.P. MORGAN SECURITIES INC. and

BARCLAYS CAPITAL,

as Joint Bookrunners

UBS SECURITIES LLC,

as Syndication Agent

JPMORGAN CHASE BANK, N.A.,

BARCLAYS BANK PLC,

WACHOVIA BANK, NATIONAL ASSOCIATION,

GOLDMAN SACHS CREDIT PARTNERS L.P., and

MERRILL LYNCH BANK USA,

as Co-Documentation Agents

WELLS FARGO BANK, N.A.,

CITICORP NORTH AMERICA, INC.,

CREDIT SUISSE, CAYMAN ISLANDS
BRANCH,

KEY BANK NATIONAL ASSOCIATION,

SUNTRUST BANK,

THE BANK OF NOVA SCOTIA,
and

THE ROYAL BANK OF SCOTLAND PLC,

as Senior Managing
Agents

Cahill Gordon &
Reindel LLP

80 Pine Street

New York, New York  10005

 

 

 

TABLE OF CONTENTS

 

	
  Section

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I DEFINITIONS AND ACCOUNTING TERMS

  	
  1

  
	
  1.01

  	
  Defined Terms

  	
  1

  
	
  1.02

  	
  Other Interpretive Provisions

  	
  23

  
	
  1.03

  	
  Accounting Terms

  	
  24

  
	
  1.04

  	
  Rounding

  	
  25

  
	
  1.05

  	
  Times of Day

  	
  25

  
	
  1.06

  	
  Letter of Credit Amounts

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE II THE COMMITMENTS AND CREDIT EXTENSIONS

  	
  25

  
	
  2.01

  	
  Committed Loans

  	
  25

  
	
  2.02

  	
  Borrowings, Conversions and Continuations of
  Committed Loans

  	
  26

  
	
  2.03

  	
  Letters of Credit

  	
  27

  
	
  2.04

  	
  Swing Line Loans

  	
  34

  
	
  2.05

  	
  Negotiated Rate Loans

  	
  36

  
	
  2.06

  	
  Prepayments

  	
  37

  
	
  2.07

  	
  Termination or Reduction of Commitments

  	
  39

  
	
  2.08

  	
  Repayment

  	
  39

  
	
  2.09

  	
  Interest

  	
  40

  
	
  2.10

  	
  Fees

  	
  41

  
	
  2.11

  	
  Computation of Interest and Fees

  	
  41

  
	
  2.12

  	
  Evidence of Debt

  	
  42

  
	
  2.13

  	
  Payments Generally; Administrative Agent’s Clawback

  	
  42

  
	
  2.14

  	
  Sharing of Payments by Lenders

  	
  44

  
	
  2.15

  	
  Extension of Maturity Date

  	
  44

  
	
  2.16

  	
  Increase in Commitments

  	
  44

  
	
   

  	
   

  	
   

  
	
  ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY

  	
  46

  
	
  3.01

  	
  Taxes

  	
  46

  
	
  3.02

  	
  Illegality

  	
  47

  
	
  3.03

  	
  Inability to Determine Rates

  	
  48

  
	
  3.04

  	
  Increased Costs; Reserves on Eurodollar Rate Loans

  	
  48

  
	
  3.05

  	
  Compensation for Losses

  	
  49

  
	
  3.06

  	
  Mitigation Obligations; Replacement of Lenders

  	
  50

  
	
  3.07

  	
  Survival

  	
  50

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

  	
  51

  
	
  4.01

  	
  Conditions of Initial Credit Extension

  	
  51

  
	
  4.02

  	
  Conditions to All Credit Extensions

  	
  53

  
	
   

  	
   

  	
   

  
	
  ARTICLE V REPRESENTATIONS AND WARRANTIES

  	
  53

  
	
  5.01

  	
  Existence, Qualification and Power; Compliance with
  Laws

  	
  54

  
	
  5.02

  	
  Authorization; No Contravention

  	
  54

  
	
  5.03

  	
  Governmental Authorization; Other Consents

  	
  54

  
	
  5.04

  	
  Binding Effect

  	
  54

  
	
  5.05

  	
  Financial Statements; No Material Adverse Effect

  	
  54

  
	
  5.06

  	
  Litigation

  	
  55

  

 

 i
 

 

 

	
  Section

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  5.07

  	
  No Default

  	
  55

  
	
  5.08

  	
  Ownership of Property; Liens; Leases

  	
  55

  
	
  5.09

  	
  Environmental Compliance

  	
  56

  
	
  5.10

  	
  Insurance

  	
  56

  
	
  5.11

  	
  Taxes

  	
  56

  
	
  5.12

  	
  ERISA Compliance

  	
  56

  
	
  5.13

  	
  Subsidiaries; Equity Interests; Subsidiary
  Guarantors

  	
  57

  
	
  5.14

  	
  Margin Regulations; Investment Company Act; REIT
  Status

  	
  58

  
	
  5.15

  	
  Disclosure

  	
  58

  
	
  5.16

  	
  Compliance with Laws

  	
  58

  
	
  5.17

  	
  Intellectual Property; Licenses, Etc.

  	
  58

  
	
  5.18

  	
  Use of Proceeds

  	
  59

  
	
  5.19

  	
  Taxpayer Identification Number

  	
  59

  
	
  5.20

  	
  Acquisition Documents

  	
  59

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI AFFIRMATIVE COVENANTS

  	
  59

  
	
  6.01

  	
  Financial Statements

  	
  59

  
	
  6.02

  	
  Certificates; Other Information

  	
  60

  
	
  6.03

  	
  Notices

  	
  62

  
	
  6.04

  	
  Payment of Obligations

  	
  62

  
	
  6.05

  	
  Preservation of Existence, Etc.

  	
  62

  
	
  6.06

  	
  Maintenance of Properties

  	
  63

  
	
  6.07

  	
  Maintenance of Insurance

  	
  63

  
	
  6.08

  	
  Compliance with Laws

  	
  63

  
	
  6.09

  	
  Books and Records

  	
  63

  
	
  6.10

  	
  Inspection Rights

  	
  63

  
	
  6.11

  	
  Use of Proceeds

  	
  64

  
	
  6.12

  	
  REIT Status

  	
  64

  
	
  6.13

  	
  New Subsidiaries; Guarantees

  	
  64

  
	
  6.14

  	
  Employee Benefits

  	
  64

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII NEGATIVE COVENANTS

  	
  65

  
	
  7.01

  	
  Liens

  	
  65

  
	
  7.02

  	
  Investments

  	
  66

  
	
  7.03

  	
  Indebtedness

  	
  66

  
	
  7.04

  	
  Fundamental Changes

  	
  66

  
	
  7.05

  	
  Dispositions

  	
  66

  
	
  7.06

  	
  Restricted Payments

  	
  66

  
	
  7.07

  	
  Change in Nature of Business

  	
  67

  
	
  7.08

  	
  Transactions with Affiliates

  	
  67

  
	
  7.09

  	
  Burdensome Agreements

  	
  67

  
	
  7.10

  	
  Financial Covenants

  	
  67

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES

  	
  68

  
	
  8.01

  	
  Events of Default

  	
  68

  
	
  8.02

  	
  Remedies Upon Event of Default

  	
  70

  
	
  8.03

  	
  Application of Funds

  	
  70

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX ADMINISTRATIVE AGENT

  	
  71

  
	
  9.01

  	
  Appointment and Authority

  	
  71

  

 

 ii
 

 

 

	
  Section

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  9.02

  	
  Rights as a Lender

  	
  71

  
	
  9.03

  	
  Exculpatory Provisions

  	
  72

  
	
  9.04

  	
  Reliance by Administrative Agent

  	
  72

  
	
  9.05

  	
  Delegation of Duties

  	
  73

  
	
  9.06

  	
  Resignation of Administrative Agent

  	
  73

  
	
  9.07

  	
  Non-Reliance on Administrative Agent and Other
  Lenders

  	
  74

  
	
  9.08

  	
  No Other Duties, Etc.

  	
  74

  
	
  9.09

  	
  Administrative Agent May File Proofs of Claim

  	
  74

  
	
   

  	
   

  	
   

  
	
  ARTICLE X MISCELLANEOUS

  	
  75

  
	
  10.01

  	
  Amendments, Etc.

  	
  75

  
	
  10.02

  	
  Notices; Effectiveness; Electronic Communication

  	
  76

  
	
  10.03

  	
  No Waiver; Cumulative Remedies

  	
  77

  
	
  10.04

  	
  Expenses; Indemnity; Damage Waiver

  	
  77

  
	
  10.05

  	
  Payments Set Aside

  	
  79

  
	
  10.06

  	
  Successors and Assigns

  	
  79

  
	
  10.07

  	
  Treatment of Certain Information; Confidentiality

  	
  83

  
	
  10.08

  	
  Right of Setoff

  	
  84

  
	
  10.09

  	
  Interest Rate Limitation

  	
  84

  
	
  10.10

  	
  Counterparts; Integration; Effectiveness

  	
  85

  
	
  10.11

  	
  Survival of Representations and Warranties

  	
  85

  
	
  10.12

  	
  Severability

  	
  85

  
	
  10.13

  	
  Replacement of Lenders

  	
  85

  
	
  10.14

  	
  Governing Law; Jurisdiction; Etc.

  	
  86

  
	
  10.15

  	
  Waiver of Jury Trial

  	
  87

  
	
  10.16

  	
  No Advisory or Fiduciary Responsibility

  	
  87

  
	
  10.17

  	
  USA Patriot Act Notice

  	
  88

  
	
  10.18

  	
  Delivery of Signature Page

  	
  88

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI GUARANTY

  	
  88

  
	
  11.01

  	
  The Guaranty

  	
  88

  
	
  11.02

  	
  Obligations Unconditional

  	
  88

  
	
  11.03

  	
  Reinstatement

  	
  89

  
	
  11.04

  	
  Certain Additional Waivers

  	
  90

  
	
  11.05

  	
  Remedies

  	
  90

  
	
  11.06

  	
  Rights of Contribution

  	
  90

  
	
  11.07

  	
  Guarantee of Payment; Continuing Guarantee

  	
  90

  
	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  
	
  2.01

  	
  Commitments and Applicable Percentages

  	
   

  
	
  2.03

  	
  Existing Letters of Credit

  	
   

  
	
  5.13

  	
  Subsidiaries; Other Equity Investments

  	
   

  
	
  10.02

  	
  Administrative Agent’s Office; Certain Addresses for
  Notices

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
   

  	
  Form of

  	
   

  
	
  A

  	
  Committed Loan Notice

  	
   

  
	
  B

  	
  Swing Line Loan Notice

  	
   

  
	
  C

  	
  Negotiated Rate Loan Notice

  	
   

  
	
  D

  	
  Term Note

  	
   

  
	
  E

  	
  Revolving Note

  	
   

  
	
  F

  	
  Compliance Certificate

  	
   

  
	
  G

  	
  Assignment and Assumption

  	
   

  
	
  H

  	
  [Reserved]

  	
   

  
	
  I

  	
  Opinion Matters

  	
   

  
	
  J

  	
  Joinder Agreement

  	
   

  

 iii

 

CREDIT AGREEMENT

This CREDIT AGREEMENT, dated
as of October 5, 2006 (as amended, restated, supplemented or otherwise
modified from time to time, this “Agreement”), among HEALTH CARE
PROPERTY INVESTORS, INC., a Maryland corporation (the “Borrower”), the
Subsidiary Guarantors party hereto from time to time (such term and each other
capitalized term used but not defined herein having the meaning given to it in Article I),
the lending institutions party hereto from time to time (each, a “Lender”
and collectively, the “Lenders”), BANK OF AMERICA, N.A., as
Administrative Agent, Swing Line
Lender and L/C Issuer, BANC OF AMERICA SECURITIES LLC, as Joint Lead Arranger
and Joint Bookrunner, UBS SECURITIES LLC,
as Joint Lead Arranger, Joint Bookrunner and Syndication Agent, J.P.
MORGAN SECURITIES INC., as Joint
Bookrunner, BARCLAYS CAPITAL, as Joint Bookrunner, JPMORGAN CHASE BANK, N.A.,
as Co-Documentation Agent, BARCLAYS BANK PLC, as Co-Documentation Agent,
WACHOVIA BANK, NATIONAL ASSOCIATION, as Co-Documentation Agent, GOLDMAN SACHS
CREDIT PARTNERS L.P., as Co-Documentation Agent, MERRILL LYNCH BANK USA, as
Co-Documentation Agent, WELLS FARGO BANK, N.A., as Senior Managing Agent,
CITICORP NORTH AMERICA, INC., as Senior Managing Agent, CREDIT SUISSE, CAYMAN
ISLANDS BRANCH, as Senior Managing Agent, KEY BANK NATIONAL ASSOCIATION, as
Senior Managing Agent, SUNTRUST BANK, as Senior Managing Agent, THE BANK OF
NOVA SCOTIA, as Senior Managing Agent, and THE ROYAL BANK OF SCOTLAND PLC, as
Senior Managing Agent.

WHEREAS, the Borrower has
entered into an agreement and plan of merger (the “CNL Merger Agreement”),
dated as of May 1, 2006, with CNL Retirement Properties, Inc., a Maryland corporation
(“CNL”), and Ocean Acquisition 1, Inc., a Maryland corporation and a
wholly owned subsidiary of the Borrower (the “CNL Merger Sub”), pursuant
to which at the closing of the transactions contemplated by the CNL Merger
Agreement, CNL shall merge with and into the CNL Merger Sub, and the CNL Merger
Sub shall be the surviving entity, and the Borrower (or an affiliate of the
Borrower) shall acquire all outstanding equity interests of CNL (the “CNL
Merger”).

WHEREAS, the Borrower has
entered into an agreement and plan of merger (the “Advisor Merger Agreement”),
dated as of May 1, 2006, with CNL Retirement Corp., a Florida corporation (the “Advisor”),
and Ocean Acquisition 2 LLC, a Florida limited liability company and a wholly
owned subsidiary of the Borrower (the “Advisor Purchaser”), pursuant to
which at the closing of the transactions contemplated by the Advisor Merger
Agreement, the Advisor shall merge with and into the Advisor Purchaser (the “Advisor
Merger”) and the Advisor Purchaser shall be the surviving entity.

WHEREAS, the Borrower has
requested that the Lenders provide a revolving credit facility and a term loan
facility, and the Lenders are willing to do so on the terms and conditions set
forth herein.

NOW, THEREFORE, in
consideration of the mutual covenants and agreements herein contained, the
parties hereto covenant and agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

1.01        Defined
Terms.

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

“Acquired Business”
means CNL and the Advisor and their Subsidiaries.

 

“Acquisition Agreements”
means, collectively, the CNL Merger Agreement and the Advisor Merger Agreement.

“Acquisition Documents”
shall mean the collective reference to the CNL Merger Agreement, the Advisor
Merger Agreement and each amendment or supplement thereto and each other agreement
entered into in connection therewith relating to the Acquisitions.

“Acquisitions” means,
collectively, the CNL Merger and the Advisor Merger.

“Administrative Agent”
means Bank of America in its capacity as administrative agent under any of the
Loan Documents, or any successor administrative agent.

“Administrative Agent’s
Office” means the Administrative Agent’s address and, as appropriate,
account as set forth on Schedule 10.02, or such other address or
account as the Administrative Agent may from time to time notify to the Borrower
and the Lenders.

“Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied by
the Administrative Agent.

“Advisor” has the
meaning specified in the second recital to this Agreement.

“Advisor Merger” has
the meaning specified in the second recital to this Agreement.

“Advisor Merger Agreement”
has the meaning specified in the second recital to this Agreement.

“Advisor Purchaser”
has the meaning specified in the second recital to this Agreement.

“Affiliate” means,
with respect to any Person, another Person that directly, or indirectly through
one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

“Agents” means the
Administrative Agent, the Arrangers, the Bookrunners, the Syndication Agent,
the Documentation Agents, the Senior Managing Agents, the Swing Line Lender and
the L/C Issuer.

“Aggregate Commitments”
means the Aggregate Revolving Commitments and the Aggregate Term Commitments of
all the Lenders.  The Aggregate
Commitments on the Closing Date are $2,700,000,000, which may be increased
pursuant to Section 2.16 or decreased pursuant to Section 2.07.

“Aggregate Revolving
Commitments” means the Revolving Commitments of all Revolving Lenders,
which as of the Closing Date are $1,000,000,000.

“Aggregate Term
Commitments” means the Term Commitments of all Term Lenders, which as of
the Closing Date are $1,700,000,000.

“Aggregate Term Loans”
means the Term Loans of all Term Lenders.

“Agreement” means
this Credit Agreement.

 2
 

 

“Applicable Percentage”
means (a) with respect to Revolving Loans, L/C Obligations and Swing Line
Loans, for each Revolving Lender at any time, a fraction (expressed as a percentage,
carried out to the ninth decimal place), the numerator of which is the amount
of such Revolving Lender’s Revolving Commitment and the denominator of which is
the amount of the Aggregate Revolving Commitments at such time; (b) with
respect to Term Loans, for each Term Lender at any time, a fraction (expressed
as a percentage, carried out to the ninth decimal place), the numerator of which
is the amount of such Term Lender’s Term Commitment at such time and the
denominator of which is the amount of the Aggregate Term Commitments at such
time; and (c) with respect to Negotiated Rate Loans, for each Lender at any
time, a fraction (expressed as a percentage, carried out to the ninth decimal
place), the numerator of which is the Outstanding Amount of such Negotiated
Rate Loan held by such Lender at such time and the denominator of which is the
aggregate Outstanding Amount of such Negotiated Rate Loan at such time.  The initial Applicable Percentages of each
Revolving Lender and each Term Lender are set forth opposite the name of such
Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to
which such Lender becomes a party hereto, as applicable.

“Applicable Rate”
means, for Revolving Loans and Term Loans, from time to time, the number of
basis points per annum set forth in the following table based upon the Debt
Rating as set forth below: 

	
   

  	
   

  	
   

  	
   

  	
  Revolving Loans

  	
   

  	
  Term Loans

  	
   

  
	
  Pricing

  Level

  	
   

  	
  Debt Ratings

  	
   

  	
  Applicable Rate for

  Eurodollar Rate

  Loans and Letter of

  Credit Fees

  	
   

  	
  Applicable Rate

  for Base Rate

  Loans

  	
   

  	
  Applicable Rate

  for Eurodollar

  Rate Loans

  	
   

  	
  Applicable Rate

  for Base Rate

  Loans

  	
   

  
	
  1

  	
   

  	
  >A-
  from S&P/ 

  >A3
  from Moody’s

  	
   

  	
  47.5
  bps

  	
   

  	
  0
  bps

  	
   

  	
  60
  bps

  	
   

  	
  0
  bps

  	
   

  
	
  2

  	
   

  	
  >BBB+
  from S&P/

  >Baa1
  from Moody’s

  	
   

  	
  50
  bps

  	
   

  	
  0
  bps

  	
   

  	
  65
  bps

  	
   

  	
  0
  bps

  	
   

  
	
  3

  	
   

  	
  >BBB
  from S&P/

  >Baa2
  from Moody’s

  	
   

  	
  70
  bps

  	
   

  	
  0
  bps

  	
   

  	
  85
  bps

  	
   

  	
  0
  bps

  	
   

  
	
  4

  	
   

  	
  >BBB-
  from S&P/

  >Baa3
  from Moody’s

  	
   

  	
  80
  bps

  	
   

  	
  0
  bps

  	
   

  	
  100
  bps

  	
   

  	
  0
  bps

  	
   

  
	
  5

  	
   

  	
  <BBB- from S&P/

  <Baa3 from Moody’s
  or nonrated by both S&P and Moody’s

  	
   

  	
  110 bps

  	
   

  	
  0 bps

  	
   

  	
  135 bps

  	
   

  	
  0 bps

  	
   

  

 

“Debt Rating” means,
as of any date of determination, the rating as determined by either S&P or
Moody’s (collectively, the “Debt Ratings”) of the Borrower’s non-credit
enhanced, senior unsecured long-term debt; provided that if a Debt
Rating is issued by each of the foregoing rating agencies, then the higher of
such Debt Ratings shall apply (with the Debt Rating for Pricing Level 1 being
the highest and the Debt Rating for Pricing Level 5 being the lowest), unless
there is a split in Debt Ratings of more than one level, in which case the Pricing
Level that is one level higher than the Pricing Level of the lower Debt Rating
shall apply.

Initially, the Applicable
Rate shall be determined based upon the Debt Rating specified in the
certificate delivered pursuant to Section 4.01(a)(vii).  Thereafter, each change in the Applicable
Rate shall occur on the first Business Day following the effective change in
the Debt Rating.

“Approved Fund” means
any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a
Lender or (c) an entity or an Affiliate of an entity that administers or manages
a Lender.

“Arrangers” means
Banc of America Securities LLC and UBS Securities LLC, each in its capacity as
joint lead arranger and joint bookrunner.

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

 3
 

 

“Assignment and
Assumption” means an assignment and assumption entered into by a Lender and
an Eligible Assignee (with the consent of any party whose consent is required
by Section 10.06(b)), and accepted by the Administrative Agent, in
substantially the form of Exhibit G or any other form approved by the
Administrative Agent.

“Attributable
Indebtedness” means, on any date, (a) in respect of any capital lease of
any Person, the capitalized amount thereof that would appear on a balance sheet
of such Person prepared as of such date in accordance with GAAP, and (b) in
respect of any Synthetic Lease Obligation, the capitalized amount of the
remaining lease payments under the relevant lease that would appear on a
balance sheet of such Person prepared as of such date in accordance with GAAP
if such lease were accounted for as a capital lease.

“Audited Financial
Statements” means the audited consolidated balance sheet of the Borrower
and its Subsidiaries for the fiscal year ended December 31, 2005, and the
related consolidated statements of income or operations, shareholders’ equity
and cash flows for such fiscal year of the Borrower and its Subsidiaries,
including the notes thereto.

“Availability Period”
means the period from and including the Closing Date to the earliest of
(a) the Business Day preceding the Revolving Maturity Date, (b) the
date of termination of the Aggregate Revolving Commitments pursuant to Section
2.07, and (c) the date of termination of the commitment of each Lender to
make Loans and of the obligation of the L/C Issuer to make L/C Credit
Extensions pursuant to Section 8.02.

“Bank of America”
means Bank of America, N.A. and its successors.

“Base Rate” means for
any day a fluctuating rate per annum equal to the higher of (a) the Federal
Funds Rate plus 1⁄2 of 1% and (b) the rate of interest in effect for such day as
publicly announced from time to time by Bank of America as its “prime rate.”  The “prime rate” is a rate set by Bank of
America based upon various factors including Bank of America’s costs and
desired return, general economic conditions and other factors, and is used as a
reference point for pricing some loans, which may be priced at, above, or below
such announced rate.  Any change in such
rate announced by Bank of America shall take effect at the opening of business
on the day specified in the public announcement of such change.

“Base Rate Committed Loan”
means a Committed Loan that is a Base Rate Loan.

“Base Rate Loan”
means a Loan that bears interest based on the Base Rate.

“Base Rate Committed
Revolving Loan” means a Committed Revolving Loan that is a Base Rate Loan.

“Base Rate Term Loan”
means a Term Loan that is a Base Rate Loan.

“Bookrunners” means
Banc of America Securities LLC, UBS Securities LLC, J.P. Morgan Securities Inc.
and Barclays Capital each in its capacity as joint bookrunner.

“Borrower” has the
meaning specified in the introductory paragraph hereto.

“Borrower Material”
has the meaning specified in Section 6.02.

“Borrowing” means a
Committed Borrowing, a Swing Line Borrowing or a Negotiated Rate Borrowing, as
the context may require.

 4
 

 

“Bridge Loan Agreement”
means the bridge loan credit agreement, dated as of October 5, 2006, among
the Borrower, as borrower, the guarantors party thereto from time to time, Bank
of America, N.A., as administrative agent, and the lenders party thereto from
time to time.

“Business Day” means
any day other than a Saturday, Sunday or other day on which commercial banks
are authorized to close under the Laws of, or are in fact closed in, the state
where the Administrative Agent’s Office is located and, if such day relates to
any Eurodollar Rate Loan, means any such day on which dealings in Dollar
deposits are conducted by and between banks in the London interbank eurodollar
market.

“Cash Collateral” and
“Cash Collateralize” each has the meaning specified in Section
2.03(g).  Derivatives of such terms
shall have corresponding meanings.

“Casualty Event”
means any involuntary loss of title, any involuntary loss of, damage to or any
destruction of, or any condemnation or other taking (including by any
Governmental Authority) of, any property of the Borrower or any of its
Subsidiaries.  “Casualty Event” shall
include but not be limited to any taking of all or any part of any real
property of any Person or any part thereof, in or by condemnation or other
eminent domain proceedings, or by reason of the temporary requisition of the
use or occupancy of all or any part of any real property of any person or any
part thereof by any Governmental Authority, civil or military, or any settlement
in lieu thereof.

“Change in Law” means
the occurrence, after the date of this Agreement, of any of the following:  (a) the adoption or taking effect of any
law, rule, regulation or treaty, (b) any change in any law, rule,
regulation or treaty or in the administration, interpretation or application
thereof by any Governmental Authority or (c) the making or issuance of any
request, guideline or directive (whether or not having the force of law) by any
Governmental Authority.

“Change of Control”
means an event or series of events by which:

(a)           any “person” or “group” (as such terms are used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding
any employee benefit plan of such person or its subsidiaries, and any person or
entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan) becomes the “beneficial owner” (as defined in
Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a
person or group shall be deemed to have “beneficial ownership” of all
securities that such person or group has the right to acquire (such right, an “option
right”), whether such right is exercisable immediately or only after the
passage of time), directly or indirectly, of 35% or more of the equity
securities of the Borrower entitled to vote for members of the board of
directors or equivalent governing body of the Borrower on a fully-diluted basis
(and taking into account all such securities that such person or group has the
right to acquire pursuant to any option right); or

(b)           during any period of 24 consecutive months, a majority of
the members of the board of directors or other equivalent governing body of the
Borrower cease to be composed of individuals (i) who were members of that board
or equivalent governing body on the first day of such period, (ii) whose
election or nomination to that board or equivalent governing body was approved
by individuals referred to in clause (i) above constituting at the time of such
election or nomination at least a majority of that board or equivalent
governing body or (iii) whose election or nomination to that board or other
equivalent governing body was approved by individuals referred to in clauses
(i) and (ii) above constituting at the time of such election or nomination at
least a majority of that board or equivalent governing body (excluding, in the
case of both clause (ii) and clause (iii), any individual whose initial
nomination for, or assumption of office as, a 

 5
 

 

member
of that board or equivalent governing body occurs as a result of an actual or
threatened solicitation of proxies or consents for the election or removal of
one or more directors by any person or group other than a solicitation for the
election of one or more directors by or on behalf of the board of directors).

“Class” (a) when used
with respect to Lenders, refers to whether such Lenders are Revolving Lenders
or Term Lenders, (b) when used with respect to Commitments, refers to whether
to such Commitments are Revolving Commitments or Term Commitments and (c) when
used with respect to Loans or a Borrowing, refers to whether such Loans, or the
Loans comprising such Borrowing, are Committed Revolving Loans, Swing Line
Loans, Negotiated Rate Loans or Term Loans.

“Closing Date” means
the first date all the conditions precedent in Section 4.01 are
satisfied or waived in accordance with Section 10.01.

“Closing Date Material
Adverse Effect” means the occurrence since December 31, 2005 of any event,
circumstance, change or effect (any such item, an “Effect”) that is, or
is reasonably likely to be, materially adverse to the business, financial
condition or results of operations of CNL and its subsidiaries taken as a
whole; provided, however, that in no event shall any of the
following be deemed, either alone or in combination, to constitute, nor shall
any of the following be taken into account in determining whether there has
been, a Closing Date Material Adverse Effect: 
(a) any Effect that results from changes in general economic conditions
or changes in securities markets in general, including any changes in interest
rates, (b) any Effect that results from general changes in the industries in
which CNL and its subsidiaries operate, (c) any Effect related to the public
announcement or the pendency or consummation of the transactions contemplated
by the Acquisition Agreements, (d) any Effect that results from any action
taken at the specific request of the Borrower, (e) any change in the market
price or trading volume of the common stock of CNL after May 1, 2006, provided,
that, the exception in this clause shall not prevent or otherwise affect a
determination that any Effect(s) underlying such change has, individually or in
the aggregate with any other Effect, resulted in a Material Adverse Effect, (f)
any Effect that results from natural disasters, acts of war, sabotage or
terrorism, military actions or the escalation thereof, or (g) any Effects
resulting from any change in applicable law or regulation in the geographic
regions in which CNL or any of its subsidiaries operates; except in the
case of clause (a), (b), (f) and (g), for any Effect that has a significantly
disproportionate adverse impact on CNL and its subsidiaries compared to other
companies of similar size operating in the principal industries in which CNL
and its subsidiaries operate.

“CNL” has the meaning
specified in the first recital to this Agreement.

“CNL Merger” has the
meaning specified in the first recital to this Agreement.

“CNL Merger Agreement”
has the meaning specified in the first recital to this Agreement.

“CNL Merger Sub” has
the meaning specified in the first recital to this Agreement.

“Code” means the
Internal Revenue Code of 1986.

“Commitment” means a
Revolving Commitment, Term Commitment, or any combination thereof (as the
context requires).

“Committed Borrowing”
means a borrowing consisting of simultaneous Committed Loans of the same Type
and Class and, in the case of Eurodollar Rate Loans, having the same Interest
Period made by each of the Lenders pursuant to Section 2.01(a) or (b).

 6
 

 

“Committed Loan”
means a Committed Revolving Loan or a Term Loan.

“Committed Loan Notice”
means a notice of (a) a Committed Borrowing, (b) a conversion of
Committed Loans from one Type to the other, or (c) a continuation of
Eurodollar Rate Loans, pursuant to Section 2.02(a), which, if in
writing, shall be substantially in the form of Exhibit A.

“Committed Revolving Loan”
has the meaning specified in Section 2.01(a) and includes Committed
Loans pursuant to Section 2.03.

“Companies” means the
Borrower and its Subsidiaries and “Company” means any one of them.

“Compliance Certificate”
means a certificate substantially in the form of Exhibit F.

“Consolidated EBITDA”
means the sum of (a) EBITDA of the Borrower and its Subsidiaries on a
consolidated basis plus (b) without duplication, the Borrower’s Pro Rata Share
of EBITDA of each Material Joint Venture.

“Consolidated Fixed
Charges” means, with respect to the Borrower and its Subsidiaries on a consolidated
basis, the sum of (a) Consolidated Interest Expense plus (b) Scheduled
Principal Payments plus (c) dividends and distributions in respect of preferred
stock (but excluding redemption payments or charges in connection with the
redemption of preferred stock) of the Borrower and its Subsidiaries.

“Consolidated Intangible
Assets” means an amount equal to the Intangible Assets of the Borrower and
its Subsidiaries on a consolidated basis.

“Consolidated Interest
Expense” means the sum of (a) Interest Expense of the Borrower and its
Subsidiaries on a consolidated basis plus (b) without duplication, the Borrower’s
Pro Rata Share of Interest Expense of each Material Joint Venture.

“Consolidated
Shareholders’ Equity” means, as of any date of determination, consolidated
shareholders’ equity of the Borrower and its Subsidiaries, as determined in
accordance with GAAP.

“Consolidated Tangible
Net Worth” means, as of any date of determination, for the Borrower and its
Subsidiaries on a consolidated basis, an amount equal to (a) Consolidated Shareholders’
Equity on such date minus (b) Consolidated Intangible Assets on such date.

“Consolidated Total Asset
Value” means the sum of (a) Total Asset Value of the Borrower and its
Subsidiaries on a consolidated basis plus (b) without duplication, the Borrower’s
Pro Rata Share of Total Asset Value of each Material Joint Venture.

“Consolidated Total
Indebtedness” means the sum of (a) Indebtedness of the Borrower and its
Subsidiaries on a consolidated basis plus (b) without duplication, the Borrower’s
Pro Rata Share of Indebtedness of each Material Joint Venture.

“Consolidated Unencumbered Asset Value” means the sum of (a)
Unencumbered Asset Value of the Borrower and the Borrower’s Pro Rata Share of
Unencumbered Asset Value of its Subsidiaries on a consolidated basis plus (b)
without duplication, the Borrower’s Pro Rata Share of Unencumbered Asset Value
of each Material Joint Venture; provided, however, that the
preceding calculation shall exclude Subsidiaries and Material Joint Ventures
that are not Guarantors and which have Indebtedness other than Indebtedness
owing to the Borrower or any Guarantor.

 7
 

 

“Contractual Obligation” means, as to any Person, any provision
of any security issued by such Person or of any agreement, instrument or other
undertaking to which such Person is a party or by which it or any of its
property is bound.

“Control” means the
possession, directly or indirectly, of the power to direct or cause the direction
of the management or policies of a Person, whether through the ability to exercise
voting power, by contract or otherwise.  “Controlling”
and “Controlled” have meanings correlative thereto.

“Credit Extension”
means each of the following: (a) a Borrowing and (b) an L/C Credit Extension.

“Debt Rating” has the
meaning specified in the definition of “Applicable Rate.”

“Debtor Relief Laws”
means the Bankruptcy Code of the United States, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization, or similar
debtor relief Laws of the United States or other applicable jurisdictions from
time to time in effect and affecting the rights of creditors generally.

“Default” means any
event or condition that constitutes an Event of Default or that, with the giving
of any notice, the passage of time, or both, would be an Event of Default.

“Default Rate” means
(a) when used with respect to Obligations other than Letter of Credit Fees, an
interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate,
if any, applicable to Base Rate Loans plus (iii) 2% per annum; provided,
however, that with respect to a Eurodollar Rate Loan, the Default Rate
shall be an interest rate equal to the interest rate (including any Applicable
Rate) otherwise applicable to such Loan plus 2% per annum, and (b) when used
with respect to Letter of Credit Fees, a rate equal to the Applicable Rate plus
2% per annum.

“Defaulting Lender”
means any Lender that (a) has failed to fund any portion of the Committed
Loans, participations in L/C Obligations or participations in Swing Line Loans
required to be funded by it hereunder within one Business Day of the date
required to be funded by it hereunder, (b) has otherwise failed to pay over to
the Administrative Agent or any other Lender any other amount required to be
paid by it hereunder within one Business Day of the date when due, unless the
subject of a good faith dispute, or (c) has been deemed insolvent or become the
subject of a bankruptcy or insolvency proceeding.

“Development Property”
means any real property in which the development and construction with respect
thereto are not complete.

“Disposition” or “Dispose”
means the sale, transfer or assignment (including any sale and leaseback
transaction) of any property by any Person, including any sale, assignment,
transfer or other disposal, with or without recourse, of any notes or accounts
receivable or any rights and claims associated therewith, in any case other
than sales or other dispositions of assets in the ordinary course of business.

“Documentation Agent”
means each of JPMorgan Chase Bank, N.A., Barclays Bank PLC, Wachovia Bank,
National Association, Goldman Sachs Credit Partners L.P. and Merrill Lynch Bank
USA, in their capacity as Co-Documentation Agents.

“Dollar” and “$”
mean lawful money of the United States.

“Domestic Subsidiary”
means any Subsidiary that is organized under the laws of any political subdivision
of the United States.

 8
 

 

“EBITDA” means, for
any period, for a Person and its Subsidiaries on a consolidated basis, an
amount equal to the Net Income of such Person and its Subsidiaries for such
period plus (a) the following to the extent deducted in calculating such
Net Income:  (i) Consolidated Interest Expense
for such period, (ii) the provision for Federal, state, local and foreign income
taxes payable by such Person and its Subsidiaries for such period, (iii)
depreciation and amortization expense for such period and (iv) expenses of such
Person and its Subsidiaries reducing such Net Income during such period which
do not represent a cash expenditure in such period or any prior or future
period and minus (b) all items of such Person and its Subsidiaries
increasing Net Income for such period which do not represent a cash receipt in
such period or any prior or future period.

“Eligible Assignee”
means any Person that meets the requirements to be an assignee under Section 10.06(b)(iii),
(v) and (vi) (subject to such consents, if any, as may be
required under Section 10.06(b)(iii)).

“Environmental Laws”
means any and all Federal, state, local, and foreign statutes, laws, regulations,
ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to
pollution and the protection of the environment or the release of any materials
into the environment, including those related to hazardous substances or
wastes, air emissions and discharges to waste or public systems.

“Environmental Liability”
means any liability, contingent or otherwise (including any liability for
damages, costs of environmental remediation, fines, penalties or indemnities),
of the Borrower or any of its Subsidiaries directly or indirectly resulting
from or based upon (a) violation of any Environmental Law, (b) the generation,
use, handling, transportation, storage, treatment or disposal of any Hazardous
Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any
contract, agreement or other consensual arrangement pursuant to which liability
is assumed or imposed with respect to any of the foregoing.

“Equity Interests”
means, with respect to any Person, all of the shares of capital stock of (or
other ownership or profit interests in) such Person and all of the warrants or
options for the purchase or acquisition from such Person of shares of capital
stock of (or other ownership or profit interests in) such Person.

“ERISA” means the
Employee Retirement Income Security Act of 1974.

“ERISA Affiliate”
means any trade or business (whether or not incorporated) under common control
with the Borrower within the meaning of Section 414(b) or (c) of the Code (and
Sections 414(m) and (o) of the Code for purposes of provisions relating to
Section 412 of the Code).

“ERISA Event” means
(a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by the
Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of
ERISA during a plan year in which it was a substantial employer (as defined in
Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as
such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial
withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or
notification that a Multiemployer Plan is in reorganization; (d) the filing of
a notice of intent to terminate, the treatment of a Plan amendment as a termination
under Sections 4041 or 4041A of ERISA, or the commencement of proceedings by
the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or
condition which constitutes grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Pension Plan
or Multiemployer Plan; or (f) the imposition of any liability under Title IV of
ERISA, other than for PBGC premiums due but not delinquent under Section 4007
of ERISA, upon the Borrower or any ERISA Affiliate.

 9
 

 

“Eurodollar Rate”
means, for any Interest Period with respect to a Eurodollar Rate Loan, the rate
per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”),
as published by Reuters (or other commercially available source providing
quotations of BBA LIBOR as designated by the Administrative Agent from time to
time) at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, for Dollar deposits (for delivery on the
first day of such Interest Period) with a term equivalent to such Interest
Period.  If such rate is not available at
such time for any reason, then the “Eurodollar Rate” for such Interest Period
shall be the rate per annum determined by the Administrative Agent to be the
rate at which deposits in Dollars for delivery on the first day of such
Interest Period in same day funds in the approximate amount of the Eurodollar
Rate Loan being made, continued or converted by Bank of America and with a term
equivalent to such Interest Period would be offered by Bank of America’s London
Branch to major banks in the London interbank eurodollar market at their
request at approximately 4:00 p.m. (London time) two Business Days prior to the
commencement of such Interest Period.

“Eurodollar Rate Loan”
means a Loan that bears interest at a rate based on the Eurodollar Rate.

“Eurodollar Rate
Revolving Loan” means a Committed Revolving Loan that bears interest at a
rate based on the Eurodollar Rate.

“Eurodollar Rate Term
Loan” means a Term Loan that bears interest at a rate based on the
Eurodollar Rate.

“Event of Default”
has the meaning specified in Section 8.01.

“Excluded Taxes”
means, with respect to the Administrative Agent, any Lender, the L/C Issuer or
any other recipient of any payment to be made by or on account of any
obligation of the Borrower hereunder, (a) taxes imposed on or measured by its
overall net income (however denominated), and franchise taxes imposed on it (in
lieu of net income taxes), by the jurisdiction (or any political subdivision
thereof) under the laws of which such recipient is organized or in which its
principal office is located or, in the case of any Lender, in which its
applicable Lending Office is located, (b) any branch profits taxes imposed by
the United States or any similar tax imposed by any other jurisdiction in which
the Borrower is located and (c) in the case of a Foreign Lender (other than an
assignee pursuant to a request by the Borrower under Section 10.13), any
withholding tax that is imposed on amounts payable to such Foreign Lender at
the time such Foreign Lender becomes a party hereto (or designates a new
Lending Office) or is attributable to such Foreign Lender’s failure or inability
(other than as a result of a Change in Law) to comply with Section 3.01(e),
except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new Lending Office (or assignment),
to receive additional amounts from the Borrower with respect to such
withholding tax pursuant to Section 3.01(a).

“Existing CNL Credit
Agreement” means that certain Amended and Restated Credit Agreement dated
as of August 23, 2005 among CNL Retirement Partners, LP, as borrower, CNL
Retirement GP Corp., CNL Retirement LP Corp., CNL Retirement Properties, Inc.
and each of the other guarantors, Bank of America, N.A., as administrative
agent, swing line lender and L/C issuer, JPMorgan Chase Bank, N.A. and General
Electric Capital Corporation as co-syndication agents, Wachovia Bank, National
Association and Key Bank National Association, as co-documentation agents and
the other lenders party thereto, and Banc of America Securities LLC, as sole
lead arranger and sole book manager.

“Existing Credit
Agreement” means that certain Credit Agreement, dated as of October 26,
2004, among the Borrower, Bank of America, N.A., as administrative agent, swing
line lender, and issuing bank, and the lenders party thereto.

 10
 

 

“Existing Letters of
Credit” means the Letters of Credit issued under the Existing Credit
Agreement set forth on Schedule 2.03.

“Facility Fee Rate”
means, from time to time, the number of basis points per annum set forth in the
following table, with reference to the Pricing Levels set forth in the
definition of “Applicable Rate”:

	
  Pricing Level

  	
   

  	
  Facility Fee

  	
   

  
	
  1

  	
   

  	
  12.5
  bps

  	
   

  
	
  2

  	
   

  	
  15
  bps

  	
   

  
	
  3

  	
   

  	
  15
  bps

  	
   

  
	
  4

  	
   

  	
  20
  bps

  	
   

  
	
  5

  	
   

  	
  25 bps

  	
   

  

 

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

“Fee Letter” means
the Amended and Restated Bank and Bridge Facilities Fee Letter Agreement, dated
July 10, 2006, among the Borrower, Bank of America, N.A., Banc of America
Securities LLC, UBS Loan Finance LLC, UBS Securities LLC, JPMorgan Chase Bank,
National Association, J.P. Morgan Securities Inc., Barclays Bank PLC and
Barclays Capital.

“Fixed Charge Coverage
Ratio” means, on the last day of any fiscal quarter, the ratio of (a)
Consolidated EBITDA for the twelve month period ending on such date to (b)
Consolidated Fixed Charges for the twelve month period ending on such date.

“Foreign Lender”
means any Lender that is organized under the laws of a jurisdiction other than
that in which the Borrower is a resident for tax purposes.  For purposes of this definition, the United
States, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

“Foreign Subsidiary”
shall mean a Subsidiary that is organized under the laws of a jurisdiction
other than the United States or any state thereof or the District of Columbia.

“FRB” means the Board
of Governors of the Federal Reserve System of the United States.

“Fund” means any
Person (other than a natural person) that is (or will be) engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar extensions
of credit in the ordinary course of its business.

“GAAP” means
generally accepted accounting principles in the United States set forth in the
opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or such other principles as may be
approved by a significant segment of the accounting profession in the United
States, that are applicable to the circumstances as of the date of
determination, consistently applied.

 11
 

 

“Governmental Authority”
means the government of the United States or any other nation, or of any political
subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including
any supra-national bodies such as the European Union or the European Central
Bank).

“Granting Lender” has
the meaning set forth in Section 10.06(h).

“Guarantee” means, as
to any Person, (a) any obligation, contingent or otherwise, of such Person
guaranteeing or having the economic effect of guaranteeing any Indebtedness or
other obligation payable or performable by another Person (the “primary obligor”)
in any manner, whether directly or indirectly, and including any obligation of
such Person, direct or indirect, (i) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Indebtedness or other obligation,
(ii) to purchase or lease property, securities or services for the purpose of
assuring the obligee in respect of such Indebtedness or other obligation of the
payment or performance of such Indebtedness or other obligation, (iii) to
maintain working capital, equity capital or any other financial statement
condition or liquidity or level of income or cash flow of the primary obligor
so as to enable the primary obligor to pay such Indebtedness or other
obligation, or (iv) entered into for the purpose of assuring in any other
manner the obligee in respect of such Indebtedness or other obligation of the
payment or performance thereof or to protect such obligee against loss in
respect thereof (in whole or in part), or (b) any Lien on any assets of such
Person securing any Indebtedness or other obligation of any other Person,
whether or not such Indebtedness or other obligation is assumed by such Person
(or any right, contingent or otherwise, of any holder of such Indebtedness to obtain
any such Lien).  The amount of any
Guarantee shall be deemed to be an amount equal to the stated or determinable
amount of the related primary obligation, or portion thereof, in respect of
which such Guarantee is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof as determined by the
guaranteeing Person in good faith.  The
term “Guarantee” as a verb has a corresponding meaning.

“Guarantors” means a collective reference to the Subsidiary
Guarantors and each other Person that subsequently joins as a Guarantor
pursuant to Section 6.13, together with their successors and permitted
assigns, and “Guarantor” means any one of
them.

“Hazardous Materials”
means all explosive or radioactive substances or wastes and all hazardous or
toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos-containing materials, polychlorinated
biphenyls, radon gas, infectious or medical wastes and all other substances or
wastes of any nature regulated pursuant to any Environmental Law.

“Honor Date” has the
meaning set forth in Section 2.03(c).

“Increase Effective Date”
has the meaning set forth in Section 2.16(d).

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

(a)           all obligations of such Person for borrowed money, whether
secured or unsecured, and all obligations of such Person evidenced by bonds,
debentures, notes, loan agreements or other similar instruments including,
without limitation, recourse and non-recourse mortgage debt;

 12
 

 

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

(c)           aggregate net obligations of such Person under Swap Contracts;

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

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

(f)            capital leases and Synthetic Lease Obligations;

(g)           all obligations of such Person to purchase, redeem,
retire, defease or otherwise make any payment in respect of any Equity Interest
in such Person at any time prior to the date that is six months after the
Maturity Date, valued, in the case of a redeemable preferred interest, at the
liquidation preference thereof; and

(h)           all Guarantees of such Person in respect of any of the
foregoing.

For all purposes hereof, (i)
the amount of any net obligation under any Swap Contract on any date shall be
deemed to be the Swap Termination Value thereof as of such date (which shall be
a positive number if such amount would be owed by the Borrower and a negative
number if such amount would be owed to the Borrower) and the net obligations
under Swap Contacts shall not be less than zero, (ii) the amount of any capital
lease or Synthetic Lease Obligation as of any date shall be deemed to be the
amount of Attributable Indebtedness in respect thereof as of such date and
(iii) Consolidated Total Indebtedness shall not include security deposits,
accrued liabilities or prepaid rent, each as defined in accordance with GAAP.

“Indemnified Taxes”
means Taxes other than Excluded Taxes.

“Indemnitee” has the
meaning specified in Section 10.04(b).

“Initial Maturity Date”
has the meaning set forth in the definition of Revolving Maturity Date.

“Insurance Proceeds”
means any proceeds received from insurance maintained by or on behalf of the Borrower
or any Subsidiary and relating to claims with respect to losses of the Borrower
or such Subsidiary, whether such proceeds are payable to the Borrower, such
Subsidiary or to the Administrative Agent, net of amounts of the type described
in clauses (A), (B) and (C) of clause (a)(ii) of the definition of “Net Cash
Proceeds” with respect to the loss giving rise to receipt of such proceeds.

“Intangible Assets”
means assets of a Person and its Subsidiaries that are classified as intangible
assets under GAAP, but excluding interests in real estate that are classified
as intangible assets in accordance with GAAP.

“Interest Expense”
means, for any period, for a Person and its Subsidiaries on a consolidated basis,
the sum of all (a) interest expense for such period determined in accordance
with GAAP (but excluding any charges resulting from settlement of options to
repurchase remarketable bonds) and (b) interest that is capitalized in such
period in accordance with GAAP.

 13
 

 

“Interest Payment Date”
means, (a) as to any Loan other than a Base Rate Loan, the last day of each
Interest Period applicable to such Loan and the Maturity Date; provided,
however, that if any Interest Period for a Eurodollar Rate Loan or a
Negotiated Rate Loan exceeds three months, the respective dates that fall every
three months after the beginning of such Interest Period shall also be Interest
Payment Dates; and (b) as to any Base Rate Loan (including a Swing Line Loan),
the last Business Day of each calendar quarter and the Maturity Date.

“Interest Period”
means, (a) as to each Eurodollar Rate Loan, the period commencing on the date
such Eurodollar Rate Loan is disbursed or converted to or continued as a
Eurodollar Rate Loan and ending on the date one, two, three or six months (or
if agreed to by all Lenders, nine or twelve months) thereafter, as selected by
the Borrower in its Committed Loan Notice and (b) as to the each Negotiated
Rate Loan, the period commencing on the date such Negotiated Rate Loan is
disbursed and ending on the date not more than 180 days thereafter as selected
by the Borrower in its Negotiated Rate Loan Notice; provided that:

(i)            any Interest Period that would
otherwise end on a day that is not a Business Day shall be extended to the next
succeeding Business Day unless such Business Day falls in another calendar
month, in which case such Interest Period shall end on the next preceding
Business Day;

(ii)           any Interest Period that begins on
the last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day of the calendar month at the end of
such Interest Period; and

(iii)          no Interest Period shall extend beyond
the Maturity Date.

“Internal Control Event”
means a material weakness in, or fraud that involves management or other
employees who have a significant role in, the Borrower’s internal controls over
financial reporting, in each case as described in the Securities Laws.

“Investment” means, as
to any Person, any direct or indirect acquisition or investment by such Person,
whether by means of (a) the purchase or other acquisition of capital stock or
other securities of another Person, (b) a loan, advance or capital contribution
to, Guarantee or assumption of debt of, or purchase or other acquisition of any
other debt or equity participation or interest in, another Person, including
any partnership or joint venture interest in such other Person and any
arrangement pursuant to which the investor Guarantees Indebtedness of such
other Person, or (c) the purchase or other acquisition (in one transaction or a
series of transactions) of assets of another Person that constitute a business
unit.  For purposes of covenant
compliance, the amount of any Investment shall be the amount actually invested,
without adjustment for subsequent increases or decreases in the value of such
Investment.

“IP Rights” has the
meaning specified in Section 5.17.

“IRS” means the
United States Internal Revenue Service.

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

 14
 

 

“Issuer Documents”
means with respect to any Letter of Credit, the Letter of Credit Application,
and any other document, agreement and instrument entered into by the L/C Issuer
and the Borrower (or any Subsidiary) or in favor of the L/C Issuer and relating
to any such Letter of Credit.

“Joinder Agreement”
means a joinder agreement substantially in the form of Exhibit J
executed and delivered by a new Guarantor in accordance with Section 6.13.

“Joint Venture” means
any Person in which the Borrower, directly or indirectly, has an ownership
interest but does not consolidate the assets or income of such Person in
preparing its consolidated financial statements.

“Laws” means,
collectively, all international, foreign, Federal, state and local statutes,
treaties, rules, guidelines, regulations, ordinances, codes and administrative
or judicial precedents or authorities, including the interpretation or
administration thereof by any Governmental Authority charged with the
enforcement, interpretation or administration thereof, and all applicable
administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case
whether or not having the force of law.

“L/C Advance” means,
with respect to each Lender, such Lender’s funding of its participation in any
L/C Borrowing in accordance with its Applicable Percentage.

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

“L/C Credit Extension”
means, with respect to any Letter of Credit, the issuance thereof or extension
of the expiry date thereof, or the increase of the amount thereof.

“L/C Issuer” means
Bank of America in its capacity as issuer of Letters of Credit hereunder, or
any successor issuer of Letters of Credit hereunder.

“L/C Obligations”
means, as at any date of determination, the aggregate amount available to be
drawn under all outstanding Letters of Credit plus the aggregate of all
Unreimbursed Amounts, including all L/C Borrowings. For purposes of computing
the amount available to be drawn under any Letter of Credit, the amount of such
Letter of Credit shall be determined in accordance with Section 1.06.  For all purposes of this Agreement, if on any
date of determination a Letter of Credit has expired by its terms but any
amount may still be drawn thereunder by reason of the operation of Rule 3.14 of
the ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount
so remaining available to be drawn.

“Lender” has the
meaning specified in the introductory paragraph hereto and, as the context
requires, includes the Swing Line Lender.

“Lending Office”
means, as to any Lender, the office or offices of such Lender described as such
in such Lender’s Administrative Questionnaire, or such other office or offices
as a Lender may from time to time notify the Borrower and the Administrative
Agent.

“Letter of Credit”
means any standby letter of credit issued hereunder.

“Letter of Credit Application” means an application and
agreement for the issuance or amendment of a Letter of Credit in the form from
time to time in use by the L/C Issuer.

 

 15

 

“Letter of Credit
Expiration Date” means the day that is the fifth day prior to the Revolving
Maturity Date then in effect (or, if such day is not a Business Day, the next
preceding Business Day).

“Letter of Credit Fee”
has the meaning specified in Section 2.03(i).

“Letter of Credit
Sublimit” means an amount equal to ten percent (10%) of the Aggregate
Revolving Commitments.  The Letter of
Credit Sublimit is part of, and not in addition to, the Aggregate Revolving Commitments.

“Leverage Ratio”
means, on the last day of any fiscal quarter, the ratio of (a) Consolidated
Total Indebtedness outstanding on such date to (b) Consolidated Total Asset
Value as of such date.

“Lien” means any
mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance,
lien (statutory or other), charge, or preference, priority or other security
interest or preferential arrangement in the nature of a security interest of
any kind or nature whatsoever (including any conditional sale or other title
retention agreement, any easement, right of way or other encumbrance on title
to real property, and any financing lease having substantially the same
economic effect as any of the foregoing).

“Loan” means an
extension of credit by a Lender to the Borrower under Article II in the form
of a Committed Loan, a Swing Line Loan or a Negotiated Rate Loan.

“Loan Documents”
means this Agreement, each Note, each Issuer Document, and the Fee Letter.

“Loan Parties” means, collectively,
the Borrower and each
Guarantor.  For purposes of the representations
and warranties made pursuant to Article V on the Closing Date, references
to “Loan Party” shall exclude any Person that is or is required to become a
Loan Party immediately following the CNL Merger and the Advisor Merger.

“Material Adverse Effect”
means (a) a material adverse change in, or a material adverse effect upon, the
operations, business, properties, liabilities (actual or contingent) or
condition (financial or otherwise) of the Borrower or the Borrower and its
Subsidiaries taken as a whole; (b) a material impairment of the ability of the
Borrowers to perform its obligations under any Loan Document to which it is a
party; or (c) a material adverse effect upon the legality, validity, binding
effect or enforceability against the Borrower of any Loan Document to which it
is a party.

“Material Joint Venture”
means a Joint Venture in which the Borrower has made a net equity investment of
$15,000,000 or greater.  For purposes of
this definition, the Borrower’s aggregate Investment in a Joint Venture will be
valued at (a) the aggregate amount of cash and cash equivalents and the book
value of other property contributed by the Borrower to such Joint Venture minus
(b) the aggregate amount of distributions received by the Borrower from such
Joint Venture that would be classified as a return of capital (as opposed to a
return on investment).

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

“Mortgage Lien” means
any Lien that encumbers a real property owned by a Person other than Permitted
Liens.

“Multiemployer Plan”
means any employee benefit plan of the type described in Section 4001(a)(3) of
ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to
make contributions, or during the preceding five plan years, has made or been
obligated to make contributions.

 16
 

 

“Negotiated Rate
Borrowing” means one or more Negotiated Rate Loans made to the Borrower by
one or more of the Lenders and of which the Administrative Agent is given
notice by a Negotiated Rate Loan Notice.

“Negotiated Rate Funding
Date” shall have the meaning set forth in Section 2.05(b).

“Negotiated Rate Loan”
shall have the meaning set forth in Section 2.05(a).

“Negotiated Rate Loan
Notice” means the notice, in substantially the form of Exhibit C, pursuant
to a Negotiated Rate Loan, and made pursuant to Section 2.05, duly
completed and executed and personally delivered or transmitted by facsimile by
the Borrower.

“Negotiated Rate Sublimit”
means an amount equal to fifty percent (50%) of the Aggregate Revolving
Commitments, which shall be available for negotiated rate advances.  The Negotiated Rate Sublimit is part of, and
not in addition to, the Aggregate Revolving Commitments.

“Net
Cash Proceeds” means:

(a)           with respect to any Disposition or Casualty Event, the
excess, if any, of (i) the sum of cash and cash equivalents received in
connection with such Disposition or Casualty Event (including any cash received
by way of deferred payment pursuant to, or by monetization of or other cash
realization upon, a note receivable or other non-cash consideration, but only
as and when so received) over (ii) the sum of (A) the principal, interest,
premiums, penalties and other amounts due under any Indebtedness that is
secured by a Lien on such asset and that is required to be repaid in connection
with such event (other than Indebtedness under the Loan Documents),
(B) the out-of-pocket expenses incurred by the Borrower or any Subsidiary
in connection with such Disposition or Casualty Event, (C) taxes reasonably
estimated to be actually payable with respect to the taxable year in which such
Disposition or Casualty Event occurred as a result of any gain recognized in
connection therewith and (D) amounts reasonably expected to be payable prior to
the Term Loan Maturity Date pursuant to customary escrow arrangements, purchase
price adjustments or indemnification agreements in connection with such
Disposition (as estimated in good faith by a Responsible Officer of the
applicable Loan Party and set forth in a certificate delivered to the
Administrative Agent prior to the consummation of such Disposition); and

(b)           with respect to any debt incurrence or Public Equity
Issuance, the excess of (i) the sum of the cash and cash equivalents received
in connection with such event over (ii) the underwriting discounts and
commissions, and other out-of-pocket fees and expenses, incurred by the
Borrower and its Subsidiaries in connection with such sale.

“Net Income” means,
for any period, for a Person and its Subsidiaries on a consolidated basis, the
net income of such Person and its Subsidiaries (excluding extraordinary gains
and extraordinary losses and other non-recurring items, including, without
limitation, charges resulting from settlement of options to repurchase
remarketable bonds and other similar charges) for that period as determined in
accordance with GAAP.

“Note” means a
promissory note made by the Borrower in favor of a Lender evidencing Loans made
by such Lender, substantially in the form of Exhibit D for Term Loans
and Exhibit E for Committed Revolving Loans.

 17
 

 

“Obligations” means
all advances to, and debts, liabilities, obligations, covenants and duties of
any Loan Party arising under any Loan Document or otherwise with respect to any
Loan or Letter of Credit, whether direct or indirect (including those acquired
by assumption), absolute or contingent, due or to become due, now existing or
hereafter arising and including interest and fees that accrue after the commencement
by or against any Loan Party or any Affiliate thereof of any proceeding under
any Debtor Relief Laws naming such Person as the debtor in such proceeding,
regardless of whether such interest and fees are allowed claims in such
proceeding.

“Organization Documents”
means, (a) with respect to any corporation, the certificate or articles of
incorporation and the bylaws (or equivalent or comparable constitutive documents
with respect to any non-U.S. jurisdiction); (b) with respect to any limited
liability company, the certificate or articles of formation or organization and
operating agreement; and (c) with respect to any partnership, joint venture,
trust or other form of business entity, the partnership, joint venture or other
applicable agreement of formation or organization and any agreement,
instrument, filing or notice with respect thereto filed in connection with its
formation or organization with the applicable Governmental Authority in the
jurisdiction of its formation or organization and, if applicable, any
certificate or articles of formation or organization of such entity.

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

“Outstanding Amount”
means (a) with respect to Term Loans, Committed Revolving Loans, Swing
Line Loans and Negotiated Rate Loans on any date, the aggregate outstanding
principal amount thereof after giving effect to any borrowings and prepayments
or repayments of Term Loans, Committed Revolving Loans, Swing Line Loans and
Negotiated Rate Loans, as the case may be, occurring on such date; and
(b) with respect to any L/C Obligations on any date, the amount of such
L/C Obligations on such date after giving effect to any L/C Credit Extension
occurring on such date and any other changes in the aggregate amount of the L/C
Obligations as of such date, including as a result of any reimbursements by the
Borrower of Unreimbursed Amounts.

“Participant” has the
meaning specified in Section 10.06(d).

“Patriot Act” has the
meaning specified in Section 10.17.

“PBGC” means the
Pension Benefit Guaranty Corporation.

“Pension Plan” means
any “employee pension benefit plan” (as such term is defined in Section 3(2) of
ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA
and is sponsored or maintained by the Borrower or any ERISA Affiliate or to
which the Borrower or any ERISA Affiliate contributes or has an obligation to
contribute, or in the case of a multiple employer or other plan described in
Section 4064(a) of ERISA, has made contributions at any time during the immediately
preceding five plan years.

“Permitted Liens”
means Liens permitted under Section 7.01(c), (d), (e), (f)
and (g).

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

“Plan” means any “employee
benefit plan” (as such term is defined in Section 3(3) of ERISA) established by
the Borrower or, with respect to any such plan that is subject to Section 412
of the Code or Title IV of ERISA, any ERISA Affiliate.

 18
 

 

“Platform” has the
meaning specified in Section 6.02.

“Pro Rata Share”
means (a) with respect to the EBITDA, Net Income, Interest Expense, Total Asset
Value and Unencumbered Asset Value of each Joint Venture, the Borrower’s direct
or indirect, percentage ownership interest in such Joint Venture and (b) with
respect to the Indebtedness of each Joint Venture (i) if the Indebtedness is
recourse to the Borrower or any of its Subsidiaries the amount of such
Indebtedness that is recourse to the Borrower or such Subsidiary and (ii) if
the Indebtedness is not recourse to the Borrower or any of its Subsidiaries,
the Borrower’s percentage ownership interest in such Joint Venture.

“Public Equity Issuance”
means the issuance, sale or other disposition by the Borrower or one if its
Subsidiaries of its Equity Interests, including any Rule 144A offering or any
rights, warrants or options to purchase shares of its Equity Interests; provided
that the term Public Equity Issuance shall not include (a) the issuance or
sale of Equity Interests by a Subsidiary of the Borrower to the Borrower or
another Subsidiary of the Borrower or (b) any rights, options or Equity
Interests issued pursuant to employee or director incentive, stock option or
stock repurchase plans in the ordinary course.

“Public Lender” has the
meaning specified in Section 6.02.

“Refinancing” means
the repayment of existing indebtedness of the Borrower and CNL of up to
$1,100,000,000 in connection with the Acquisitions.

“Register” has the
meaning specified in Section 10.06(c).

“Registered Public
Accounting Firm” has the meaning specified in the Securities Laws and shall
be independent of the Borrower as prescribed by the Securities Laws.

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

“Related Parties” means,
with respect to any Person, such Person’s Affiliates and the partners, directors,
officers, employees, agents and advisors of such Person and of such Person’s
Affiliates.

“Reportable Event”
means any of the events set forth in Section 4043(c) of ERISA, other than
events for which the 30 day notice period has been waived.

“Request for Credit
Extension” means (a) with respect to a Borrowing, conversion or continuation
of Committed Loans, a Committed Loan Notice, (b) with respect to an L/C Credit
Extension, a Letter of Credit Application, and (c) with respect to a Swing Line
Loan, a Swing Line Loan Notice and (d) with respect to a Negotiated Rate Loan,
a Negotiated Rate Loan Notice.

“Required Lenders”
means, as of any date of determination, (a) Lenders having more than 50%
of the sum of (i) the Aggregate Revolving Commitments and (ii) the Total Term
Outstandings or (b) if the commitment of each Lender to make Loans and the
obligation of the L/C Issuer to make L/C Credit Extensions have been terminated
pursuant to Section 8.02, Lenders holding in the aggregate more than 50%
of the Total Outstandings (with the aggregate amount of each Lender’s risk
participation and funded participation in L/C Obligations and Swing Line Loans
being deemed “held” by such Lender for purposes of this definition); provided
that the Revolving Commitment of, and the portion of the Total Outstandings
held or deemed held by, any Defaulting Lender shall be excluded for purposes of
making a determination of Required Lenders.

 19
 

 

“Required Revolving
Lenders” means, as of any date of determination, Revolving Lenders having
more than 50% of the Aggregate Revolving Commitments (with the aggregate amount
of each Revolving Lender’s risk participation and funded participation in L/C
Obligations and Swing Line Loans being deemed “held” by such Revolving Lender
as Committed Revolving Loans for purposes of this definition); provided
that the Commitment of and the Outstanding Amount of Committed Revolving Loans
held or deemed held by, any Defaulting Lender shall be excluded for purposes of
making a determination of Required Revolving Lenders.

“Required Term Lenders”
means, as of any date of determination, Term Lenders having more than 50% of
the Total Term Outstandings; provided that the Outstanding Amount of
Term Loans held or deemed held by any Defaulting Lender shall be excluded for
purposes of making a determination of Required Term Lenders.

“Responsible Officer”
means the chief executive officer, president, chief financial officer, each
executive vice president and senior vice president, and the treasurer of a Loan
Party.  Any document delivered hereunder
that is signed by a Responsible Officer of a Loan Party shall be conclusively
presumed to have been authorized by all necessary corporate, partnership and/or
other action on the part of the Loan Party and such Responsible Officer shall
be conclusively presumed to have acted on behalf of the Loan Party.

“Restricted Payment”
means any payment (whether in cash, securities or other property), including any
sinking fund or similar deposit, on account of the purchase, redemption,
retirement, acquisition, cancellation or termination of any such capital stock
or other Equity Interest, or on account of any return of capital to the
Borrower’s stockholders, partners or members (or the equivalent Person
thereof).

“Revolving Commitment”
means, as to each Lender, its obligation to (a) make Committed Revolving Loans
to the Borrower pursuant to Section 2.01, (b) purchase participations in
L/C Obligations, and (c) purchase participations in Swing Line Loans, in an
aggregate principal amount at any one time outstanding not to exceed the amount
set forth opposite such Lender’s name in the column entitled “Revolving
Commitment” on Schedule 2.01 or in the Assignment and Assumption
pursuant to which such Lender becomes a party hereto, as applicable, as such
amount may be adjusted from time to time in accordance with this Agreement.

“Revolving Lender”
means a Lender with a Revolving Commitment or an outstanding Committed Revolving
Loan or an outstanding Negotiated Rate Loan and, as the context requires,
includes the L/C Issuer and the Swing Line Lender.

“Revolving Loan”
means any extension of credit by a Lender to the Borrower under Article II
other than a Term Loan.

“Revolving Maturity Date”
means October 2, 2009 (the “Initial Maturity Date”), subject to
extension in accordance with Section 2.15.

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

“Scheduled Principal
Payment” means (a) all scheduled principal payments by the Borrower and its
Subsidiaries with respect to its Consolidated Total Indebtedness (other than
payments due at final maturity of any tranche of Indebtedness) and (b) without
duplication, the Borrower’s Pro Rata Share of all scheduled principal payments
with respect to the Indebtedness (other than payments due at final maturity of
any tranche of Indebtedness) of each Material Joint Venture, in each case
without giving effect to any reduction in such scheduled principal payments as
a result of any voluntary or mandatory prepayment with respect thereto made in
the same period in which such principal payment was scheduled to be made.

 20
 

 

“SEC” means the
Securities and Exchange Commission, or any Governmental Authority succeeding to
any of its principal functions.

“Secured Debt” means
that portion of Consolidated Total Indebtedness that is subject to a Lien
(other than Permitted Liens).

“Secured Debt Ratio”
means, on the last day of any fiscal quarter, the ratio of (a) Secured Debt
outstanding on such date to (b) Consolidated Total Asset Value as of such date.

“Securities Laws”
means the Securities Act of 1933, as amended (the “Securities Act”), the
Securities Exchange Act of 1934, as amended (the “Securities Exchange Act”),
the Sarbanes-Oxley Act of 2002 and the applicable accounting and auditing
principles, rules, standards and practices promulgated, approved or
incorporated by the SEC or the PCAOB.

“Senior Managing Agent”
means each of Wells Fargo Bank, N.A., Citicorp North America, Inc., Credit
Suisse, Cayman Islands Branch, Key Bank National Association, SunTrust Bank,
The Bank of Nova Scotia and The Royal Bank of Scotland plc in their capacity as
Senior Managing Agents.

“SPC” has the meaning
set forth in Section 10.06(h).

“Specified
Representations” has the meaning set forth in Section 4.01(a)(viii).

“Subsidiary” of a
Person means a corporation, partnership, joint venture, limited liability company
or other business entity the accounts of which are consolidated with the
accounts of the Borrower in the Borrower’s consolidated financial statements
prepared in accordance with GAAP.  Unless
otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries”
shall refer to a Subsidiary or Subsidiaries of the Borrower.

“Subsidiary Guarantors”
means (a) each Subsidiary of the Borrower identified on the signature pages
hereto, and (b) each other Subsidiary of the Borrower that subsequently joins
as a Guarantor pursuant to Section 6.13, together with their successors
and permitted assigns, and “Subsidiary Guarantor” means any one of them.

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

 21
 

 

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

“Swing Line” means
the revolving credit facility made available by the Swing Line Lender pursuant
to Section 2.04.

“Swing Line Borrowing”
means a borrowing of a Swing Line Loan pursuant to Section 2.04.

“Swing Line Lender”
means Bank of America in its capacity as provider of Swing Line Loans, or any
successor swing line lender hereunder.

“Swing Line Loan” has
the meaning specified in Section 2.04(a).

“Swing Line Loan Notice”
means a notice of a Swing Line Borrowing pursuant to Section 2.04(b),
which, if in writing, shall be substantially in the form of Exhibit B.

“Swing Line Sublimit”
means an amount equal to ten percent (10%) of the Aggregate Revolving Commitments.  The Swing Line Sublimit is part of, and not
in addition to, the Aggregate Revolving Commitments.

“Syndication Agent”
means UBS Securities LLC in its capacity as Syndication Agent.

“Synthetic Lease
Obligation” means the monetary obligation of a Person under a so-called synthetic,
off-balance sheet or tax retention lease.

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

“Term Commitment”
means, as to each Lender, its obligation to make Term Loans to the Borrower
pursuant to Section 2.01, in an aggregate principal amount not to exceed
the amount set forth opposite such Lender’s name in the column entitled “Term
Commitment” on Schedule 2.01 or in the Assignment and Assumption
pursuant to which such Lender becomes a party hereto, as applicable, as such
amount may be adjusted from time to time in accordance with this Agreement.

“Term Lender” means a
Lender with a Term Commitment or an outstanding Term Loan.

“Term Loan” has the
meaning specified in Section 2.01(b).

“Term Loan Maturity Date”
means October 3, 2008.

“Threshold Amount”
means $50,000,000.

 22
 

 

“Total Asset Value”
means an amount equal to (a) all assets of a Person and its Subsidiaries as
determined in accordance with GAAP plus (b) all accumulated depreciation
associated with such assets minus (c) Intangible Assets.

“Total Outstandings”
means the Total Revolving Outstandings and the Total Term Outstandings.

“Total Revolving
Outstandings” means the aggregate Outstanding Amount of all Committed
Revolving Loans, all Swing Line Loans, all L/C Obligations and all Negotiated
Rate Loans.

“Total Term Outstandings”
means the aggregate Outstanding Amount of all Term Loans.

“Transactions” means,
collectively, (i) the Acquisitions, (ii) the Refinancing,
(iii) the entering into of this Agreement and the funding of the Loans,
(iv) the payment of related fees, commissions and expenses, (v) the
entry into and borrowing of up to $705,729,000 under the Bridge Loan Agreement,
and (vi) all transactions related thereto.

“Treasury Management
Agreement” means any treasury, depository or cash management arrangements,
services or products, including, without limitation, overdraft services and
automated clearinghouse transfers of funds.

“Type” means, with
respect to a Committed Loan, its character as a Base Rate Loan or a Eurodollar
Rate Loan.

“Unencumbered Asset Value”
means the sum of (a) the aggregate net book value, as determined in accordance
with GAAP, of all real property of a Person that is not subject to a Mortgage
Lien plus (b) all accumulated depreciation with respect to such real properties
plus (c) unrestricted cash and cash equivalents of such Person.

“Unfunded Pension
Liability” means the excess of a Pension Plan’s benefit liabilities under
Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s
assets, determined in accordance with the assumptions used for funding the
Pension Plan pursuant to Section 412 of the Code for the applicable plan year.

“United States” and “U.S.”
mean the United States of America.

“Unreimbursed Amount”
has the meaning specified in Section 2.03(c)(i).

“Unsecured Debt”
means that portion of Consolidated Total Indebtedness that is not Secured Debt.

“Unsecured Leverage Ratio”
means, on the last day of any fiscal quarter, the ratio of (a) Unsecured Debt
outstanding on such date to (b) Consolidated Unencumbered Asset Value as of
such date.

1.02        Other
Interpretive Provisions.

With reference to this
Agreement and each other Loan Document, unless otherwise specified herein or in
such other Loan Document:

(a)           The
definitions of terms herein shall apply equally to the singular and plural
forms of the terms defined.  Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms.  The words “include,”
“includes” and 

 23
 

 

“including” shall be deemed to be followed by the phrase “without
limitation.”  The word “will”
shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise, (i)
any definition of or reference to any agreement, instrument or other document
(including any Organization Document) shall be construed as referring to such
agreement, instrument or other document as from time to time amended, supplemented
or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein or in any other Loan Document),
(ii) any reference herein to any Person shall be construed to include such
Person’s successors and assigns, (iii) the words “herein,” “hereof”
and “hereunder,” and words of similar import when used in any Loan
Document, shall be construed to refer to such Loan Document in its entirety and
not to any particular provision thereof, (iv) all references in a Loan Document
to Articles, Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, the Loan Document in
which such references appear, (v) any reference to any law shall include all
statutory and regulatory provisions consolidating, amending replacing or
interpreting such law and any reference to any law or regulation shall, unless
otherwise specified, refer to such law or regulation as amended, modified or
supplemented from time to time, and (vi) the words “asset” and “property”
shall be construed to have the same meaning and effect and to refer to any and
all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

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

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

1.03        Accounting
Terms.

(a)           Generally.  All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all
financial data (including financial ratios and other financial calculations)
required to be submitted pursuant to this Agreement shall be prepared in conformity
with, GAAP applied on a consistent basis, as in effect from time to time,
applied in a manner consistent with that used in preparing the Audited
Financial Statements, except as otherwise specifically prescribed
herein.

(b)           Changes in GAAP.  If at any time any change in GAAP would
affect the computation of any financial ratio or requirement set forth in any
Loan Document, and either the Borrower or the Required Lenders shall so
request, the Administrative Agent, the Lenders and the Borrower shall negotiate
in good faith to amend such ratio or requirement to preserve the original
intent thereof in light of such change in GAAP (subject to the approval of the
Required Lenders); provided  that, until so amended, (i) such ratio or
requirement shall continue to be computed in accordance with GAAP prior to such
change therein and (ii) the Borrower shall provide to the Administrative Agent
and the Lenders financial statements and other documents required under this
Agreement or as reasonably requested hereunder setting forth a reconciliation
between calculations of such ratio or requirement made before and after giving
effect to such change in GAAP.

 24
 

 

1.04        Rounding.

Any financial ratios
required to be maintained by the Borrower pursuant to this Agreement shall be
calculated by dividing the appropriate component by the other component, carrying
the result to one place more than the number of places by which such ratio is
expressed herein and rounding the result up or down to the nearest number (with
a rounding-up if there is no nearest number).

1.05        Times
of Day.

Unless otherwise specified,
all references herein to times of day shall be references to Eastern time
(daylight or standard, as applicable).

1.06        Letter
of Credit Amounts.

Unless otherwise specified
herein, the amount of a Letter of Credit at any time shall be deemed to be the
stated amount of such Letter of Credit in effect at such time; provided,
however, that with respect to any Letter of Credit that, by its terms or
the terms of any Issuer Document related thereto, provides for one or more
automatic increases in the stated amount thereof, the amount of such Letter of
Credit shall be deemed to be the maximum stated amount of such Letter of Credit
after giving effect to all such increases, whether or not such maximum stated
amount is in effect at such time.

ARTICLE
II

THE
COMMITMENTS AND CREDIT EXTENSIONS

2.01        Committed
Loans.

(a)           Committed
Revolving Loans.  Subject to the
terms and conditions set forth herein, each Revolving Lender severally agrees
to make revolving loans (each such loan, a “Committed Revolving Loan”)
to the Borrower from time to time, on any Business Day during the Availability
Period, in an aggregate amount not to exceed at any time outstanding the amount
of such Revolving Lender’s Revolving Commitment; provided, however,
that after giving effect to any Committed Borrowing, (i) the Total
Revolving Outstandings shall not exceed the Aggregate Revolving Commitments,
and (ii) the aggregate Outstanding Amount of the Committed Revolving Loans
of any Revolving Lender, plus such Revolving Lender’s Applicable Percentage of
the Outstanding Amount of all L/C Obligations, plus such Revolving Lender’s
Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall
not exceed such Revolving Lender’s Revolving Commitment.  Within the limits of each Revolving Lender’s
Revolving Commitment, and subject to the other terms and conditions hereof, the
Borrower may borrow under this Section 2.01, prepay under Section
2.06, and reborrow under this Section 2.01.  Committed Revolving Loans may be Base Rate
Loans or Eurodollar Rate Loans, as further provided herein.

(b)           Term Loans.  Subject to the terms and conditions set forth
herein, each Term Lender severally agrees to make a loan (each such loan, a “Term
Loan”) to the Borrower on the Closing Date in an amount not to exceed the
amount of such Term Lender’s Term Commitment. The Term Commitments are not
revolving in nature, and amounts repaid in respect of Term Loans may not be
reborrowed.  Term Loans may be Base Rate
Loans or Eurodollar Rate Loans, as further provided herein.

 25
 

 

2.02        Borrowings,
Conversions and Continuations of Committed Loans.

(a)           Each Committed
Borrowing, each conversion of Committed Loans from one Type to the other, and
each continuation of Eurodollar Rate Loans shall be made upon the Borrower’s
irrevocable notice to the Administrative Agent, which may be given by
telephone.  Each such notice must be
received by the Administrative Agent not later than 12:00 Noon (i) three
Business Days prior to the requested date of any Borrowing of, conversion to or
continuation of Eurodollar Rate Loans or of any conversion of Eurodollar Rate
Loans to Base Rate Committed Loans, and (ii) on the requested date of any
Borrowing of Base Rate Committed Loans. 
Each telephonic notice by the Borrower pursuant to this Section
2.02(a) must be confirmed promptly by delivery to the Administrative Agent
of a written Committed Loan Notice, appropriately completed and signed by a
Responsible Officer of the Borrower. 
Each Borrowing of, conversion to or continuation of Eurodollar Rate
Loans shall be in a principal amount of $1,000,000 or a whole multiple of
$100,000 in excess thereof.  Except as
provided in Sections 2.03(c) and 2.04(c), each Borrowing of or
conversion to Base Rate Committed Loans shall be in a principal amount of
$1,000,000 or a whole multiple of $100,000 in excess thereof.

Each Committed Loan Notice
(whether telephonic or written) shall specify (i) whether the Borrower is
requesting a Committed Borrowing, a conversion of Committed Loans from one Type
to the other, or a continuation of Eurodollar Rate Loans, (ii) the requested
date of the Borrowing, conversion or continuation, as the case may be (which
shall be a Business Day), (iii) the principal amount of Committed Loans to be
borrowed, converted or continued, (iv) the Type and Class of Committed Loans to
be borrowed or to which existing Committed Loans are to be converted, and (v)
if applicable, the duration of the Interest Period with respect thereto.  If the Borrower fails to specify a Type of
Committed Loan in a Committed Loan Notice or if the Borrower fails to give a
timely notice requesting a conversion or continuation, then the applicable
Committed Loans shall be made as, or converted to, Base Rate Loans.  Any such automatic conversion to Base Rate
Loans shall be effective as of the last day of the Interest Period then in
effect with respect to the applicable Eurodollar Rate Loans.  If the Borrower requests a Borrowing of,
conversion to, or continuation of Eurodollar Rate Loans in any such Committed
Loan Notice, but fails to specify an Interest Period, it will be deemed to have
specified an Interest Period of one month.

(b)           Following receipt of
a Committed Loan Notice, the Administrative Agent shall promptly notify each
Lender of the amount of its Applicable Percentage of the applicable Committed
Loans, and if no timely notice of a conversion or continuation is provided by
the Borrower, the Administrative Agent shall notify each Lender of the details
of any automatic conversion to Base Rate Loans described in the preceding
subsection.  In the case of a Committed
Borrowing, each Lender shall make the amount of its Committed Loan available to
the Administrative Agent in immediately available funds at the Administrative
Agent’s Office not later than 2:00 p.m. on the Business Day specified in the
applicable Committed Loan Notice.  Upon
satisfaction of the applicable conditions set forth in Section 4.02
(and, if such Borrowing is the initial Credit Extension, Section 4.01),
the Administrative Agent shall make all funds so received available to the
Borrower in like funds as received by the Administrative Agent either by (i)
crediting the account of the Borrower on the books of Bank of America with the
amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to (and reasonably acceptable to) the
Administrative Agent by the Borrower; provided, however, that if,
on the date the Committed Loan Notice with respect to such Borrowing is given
by the Borrower, there are L/C Borrowings outstanding, then the proceeds of
such Borrowing, first, shall be applied to the payment in full of any
such L/C Borrowings and second, shall be made available to the Borrower
as provided above.

(c)           Except as otherwise
provided herein, a Eurodollar Rate Loan may be continued or converted only on
the last day of an Interest Period for such Eurodollar Rate Loan.  During the existence of a Default, no Loans
may be requested as, converted to or continued as Eurodollar Rate Loans without
the consent of the Required Lenders.

 26
 

 

(d)           The Administrative
Agent shall promptly notify the Borrower and the Lenders of the interest rate
applicable to any Interest Period for Eurodollar Rate Loans upon determination
of such interest rate.  At any time that
Base Rate Loans are outstanding, the Administrative Agent shall notify the Borrower
and the Lenders of any change in Bank of America’s prime rate used in determining
the Base Rate promptly following the public announcement of such change.

(e)           After giving effect
to all Committed Borrowings, all conversions of Committed Loans from one Type
to the other, and all continuations of Committed Loans as the same Type, there
shall not be more than (i) ten Interest Periods in effect with respect to all
Committed Revolving Loans and (ii) ten Interest Periods in effect with respect
to all Term Loans.

2.03        Letters
of Credit.

(a)           The Letter of
Credit Commitment.

(i)            Subject
to the terms and conditions set forth herein, (A) the L/C Issuer agrees,
in reliance upon the agreements of the Lenders set forth in this Section 2.03,
(1) from time to time on any Business Day during the period from the
Closing Date until the Letter of Credit Expiration Date, to issue Letters of
Credit for the account of the Borrower or its Subsidiaries, and to amend
Letters of Credit previously issued by it, in accordance with
subsection (b) below, and (2) to honor drawings under the Letters of
Credit; and (B) the Revolving Lenders severally agree to participate in Letters
of Credit issued for the account of the Borrower or its Subsidiaries and any
drawings thereunder; provided that after giving effect to any L/C Credit
Extension with respect to any Letter of Credit, (x) the Total Revolving
Outstandings shall not exceed the Aggregate Revolving Commitments, (y) the
aggregate Outstanding Amount of the Committed Revolving Loans of any Revolving
Lender, plus such Revolving Lender’s Applicable Percentage of the
Outstanding Amount of all L/C Obligations, plus such Revolving Lender’s Applicable
Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed
such Revolving Lender’s Commitment and (z) the Outstanding Amount of the L/C
Obligations shall not exceed the Letter of Credit Sublimit.  Each request by the Borrower for the issuance
or amendment of a Letter of Credit shall be deemed to be a representation by
the Borrower that the L/C Credit Extension so requested complies with the
conditions set forth in the proviso to the preceding sentence.  Within the foregoing limits, and subject to
the terms and conditions hereof, the Borrower’s ability to obtain Letters of
Credit shall be fully revolving, and accordingly the Borrower may, during the
foregoing period, obtain Letters of Credit to replace Letters of Credit that
have expired or that have been drawn upon and reimbursed.  The Existing Letters of Credit shall be
deemed to have been issued hereunder, and from and after the Closing Date shall
be subject to and governed by the terms and conditions hereof.

(ii)           The
L/C Issuer shall not issue any Letter of Credit, if:

(A)          the expiry date of such requested
Letter of Credit would occur more than twelve months after the date of
issuance, unless the Required Revolving Lenders have approved such expiry date;
or

(B)           the expiry date of such requested
Letter of Credit would occur after the Letter of Credit Expiration Date, unless
all the Revolving Lenders have approved such expiry date.

(iii)          The
L/C Issuer shall not be under any obligation to issue any Letter of Credit if:

(A)          any order, judgment or decree of any
Governmental Authority or arbitrator shall by its terms purport to enjoin or
restrain the L/C Issuer from issuing such Letter of Credit, or any Law
applicable to the L/C Issuer or any request or directive (whether or not having
the force of law) from any Governmental Authority with jurisdiction over the
L/C Issuer shall prohibit, or request that the L/C Issuer refrain from, the
issuance of letters of credit generally or such Letter of 

 27
 

 

Credit in particular or shall impose upon the
L/C Issuer with respect to such Letter of Credit any restriction, reserve or
capital requirement (for which the L/C Issuer is not otherwise compensated
hereunder) not in effect on the Closing Date, or shall impose upon the L/C
Issuer any unreimbursed loss, cost or expense which was not applicable on the
Closing Date and which the L/C Issuer in good faith deems material to it;

(B)           the issuance of such Letter of Credit
would violate one or more policies of the L/C Issuer;

(C)           except as otherwise agreed by the
Administrative Agent and the L/C Issuer, such Letter of Credit is in an initial
stated amount less than $500,000;

(D)          such Letter of Credit is to be
denominated in a currency other than Dollars;

(E)           such Letter of Credit contains any
provisions for automatic reinstatement of the stated amount after any drawing
thereunder; or

(F)           a default of any Revolving Lender’s
obligations to fund under Section 2.03(c) exists or any Revolving
Lender is at such time a Defaulting Lender hereunder, unless the L/C Issuer has
entered into satisfactory arrangements with the Borrower or such Revolving
Lender to eliminate the L/C Issuer’s risk with respect to such Revolving
Lender.

(iv)          The
L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not be
permitted at such time to issue such Letter of Credit in its amended form under
the terms hereof.

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

(vi)          The
L/C Issuer shall act on behalf of the Revolving Lenders with respect to any
Letters of Credit issued by it and the documents associated therewith, and the
L/C Issuer shall have all of the benefits and immunities (A) provided to the
Administrative Agent in Article IX with respect to any acts taken or
omissions suffered by the L/C Issuer in connection with Letters of Credit issued
by it or proposed to be issued by it and Issuer Documents pertaining to such Letters
of Credit as fully as if the term “Administrative Agent” as used in Article
IX included the L/C Issuer with respect to such acts or omissions, and (B)
as additionally provided herein with respect to the L/C Issuer.

(b)           Procedures
for Issuance and Amendment of Letters of Credit.

(i)            Each
Letter of Credit shall be issued or amended, as the case may be, upon the
request of the Borrower delivered to the L/C Issuer (with a copy to the
Administrative Agent) in the form of a Letter of Credit Application,
appropriately completed and signed by a Responsible Officer of the
Borrower.  Such Letter of Credit
Application must be received by the L/C Issuer and the Administrative Agent not
later than 11:00 a.m. at least two Business Days (or such later date and time
as the Administrative Agent and the L/C Issuer may agree in a particular
instance in their sole discretion) prior to the proposed issuance date or date
of amendment, as the case may be.  In the
case of a request for an initial issuance of a Letter of Credit, such Letter of
Credit Application shall specify in form and detail satisfactory to the L/C
Issuer:  (A) the proposed issuance date
of the requested Letter of Credit (which shall be a Business Day); (B) the
amount thereof; (C) the expiry date thereof; (D) the name and address of the
beneficiary thereof; (E) the documents to be presented by such beneficiary in
case of any drawing thereunder; (F) the full text 

 28
 

 

of any certificate to be presented by such beneficiary in case of any
drawing thereunder; and (G) such other matters as the L/C Issuer may
require.  In the case of a request for an
amendment of any outstanding Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the L/C Issuer (A)
the Letter of Credit to be amended; (B) the proposed date of amendment thereof
(which shall be a Business Day); (C) the nature of the proposed amendment; and
(D) such other matters as the L/C Issuer may require.  Additionally, the Borrower shall furnish to
the L/C Issuer and the Administrative Agent such other documents and
information pertaining to such requested Letter of Credit issuance or
amendment, including any Issuer Documents, as the L/C Issuer or the Administrative
Agent may require.

(ii)           Promptly
after receipt of any Letter of Credit Application, the L/C Issuer will confirm
with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has received a copy of such Letter of Credit Application
from the Borrower and, if not, the L/C Issuer will provide the Administrative
Agent with a copy thereof.  Unless the
L/C Issuer has received written notice from any Revolving Lender, the
Administrative Agent or the Borrower, at least one Business Day prior to the
requested date of issuance or amendment of the applicable Letter of Credit,
that one or more applicable conditions contained in Article IV shall not
then be satisfied, then, subject to the terms and conditions hereof, the L/C
Issuer shall, on the requested date, issue a Letter of Credit for the account
of the Borrower (or the applicable Subsidiary) or enter into the applicable
amendment, as the case may be, in each case in accordance with the L/C Issuer’s
usual and customary business practices. 
Immediately upon the issuance of each Letter of Credit, each Revolving
Lender shall be deemed to, and hereby irrevocably and unconditionally agrees
to, purchase from the L/C Issuer a risk participation in such Letter of Credit
in an amount equal to the product of such Revolving Lender’s Applicable
Percentage of the Aggregate Revolving Commitments times the amount of
such Letter of Credit.

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

(c)           Drawings
and Reimbursements; Funding of Participations.

(i)            Upon
receipt from the beneficiary of any Letter of Credit of any notice of a drawing
under such Letter of Credit, the L/C Issuer shall notify the Borrower and the
Administrative Agent thereof.  Not later
than 12:00 Noon on the date of any payment by the L/C Issuer under a Letter of
Credit (each such date, an “Honor Date”), the Borrower shall reimburse
the L/C Issuer through the Administrative Agent in an amount equal to the
amount of such drawing.  If the Borrower
fails to so reimburse the L/C Issuer by such time, the Administrative Agent
shall promptly notify each Revolving Lender of the Honor Date, the amount of
the unreimbursed drawing (the “Unreimbursed Amount”), and the amount of
such Revolving Lender’s Applicable Percentage thereof.  In such event, the Borrower shall be deemed
to have requested a Committed Borrowing of Base Rate Committed Revolving Loans
to be disbursed on the Honor Date in an amount equal to the Unreimbursed
Amount, without regard to the minimum and multiples specified in Section
2.02 for the principal amount of Base Rate Committed Revolving Loans, but
subject to the amount of the unutilized portion of the Aggregate Revolving
Commitments and the conditions set forth in Section 4.02 (other than the
delivery of a Committed Loan Notice). 
Any notice given by the L/C Issuer or the Administrative Agent pursuant
to this Section 2.03(c)(i) may be given by telephone if immediately
confirmed in writing; provided that the lack of such an immediate
confirmation shall not affect the conclusiveness or binding effect of such
notice.

(ii)           Each
Revolving Lender shall upon any notice pursuant to Section 2.03(c)(i)
make funds available to the Administrative Agent for the account of the L/C
Issuer at the Administrative Agent’s Office in an amount equal to its
Applicable Percentage of the Unreimbursed Amount not later than 1:00 p.m. 

 29
 

 

on the Business Day specified in such notice by the Administrative
Agent, whereupon, subject to the provisions of Section 2.03(c)(iii),
each Revolving Lender that so makes funds available shall be deemed to have
made a Base Rate Committed Revolving Loan to the Borrower in such amount.  The Administrative Agent shall remit the
funds so received to the L/C Issuer.

(iii)          With
respect to any Unreimbursed Amount that is not fully refinanced by a Committed
Borrowing of Base Rate Committed Revolving Loans because the conditions set
forth in Section 4.02 cannot be satisfied or for any other reason, the
Borrower shall be deemed to have incurred from the L/C Issuer an L/C Borrowing
in the amount of the Unreimbursed Amount that is not so refinanced, which L/C
Borrowing shall be due and payable on demand (together with interest) and shall
bear interest at the Default Rate.  In
such event, each Revolving Lender’s payment to the Administrative Agent for the
account of the L/C Issuer pursuant to Section 2.03(c)(ii) shall be
deemed payment in respect of its participation in such L/C Borrowing and shall
constitute an L/C Advance from such Revolving Lender in satisfaction of its
participation obligation under this Section 2.03.

(iv)          Until
each Revolving Lender funds its Committed Revolving Loan or L/C Advance
pursuant to this Section 2.03(c) to reimburse the L/C Issuer for any
amount drawn under any Letter of Credit, interest in respect of such Revolving
Lender’s Applicable Percentage of such amount shall be solely for the account
of the L/C Issuer.

(v)           Each
Revolving Lender’s obligation to make Committed Revolving Loans or L/C Advances
to reimburse the L/C Issuer for amounts drawn under Letters of Credit, as
contemplated by this Section 2.03(c), shall be absolute and
unconditional and shall not be affected by any circumstance, including (A) any
setoff, counterclaim, recoupment, defense or other right which such Revolving Lender
may have against the L/C Issuer, the Borrower or any other Person for any
reason whatsoever; (B) the occurrence or continuance of a Default, or (C)
any other occurrence, event or condition, whether or not similar to any of the
foregoing; provided, however, that each Revolving Lender’s
obligation to make Committed Revolving Loans pursuant to this Section
2.03(c) is subject to the conditions set forth in Section 4.02
(other than delivery by the Borrower of a Committed Loan Notice).  No such making of an L/C Advance shall
relieve or otherwise impair the obligation of the Borrower to reimburse the L/C
Issuer for the amount of any payment made by the L/C Issuer under any Letter of
Credit, together with interest as provided herein.

(vi)          If
any Revolving Lender fails to make available to the Administrative Agent for
the account of the L/C Issuer any amount required to be paid by such Revolving
Lender pursuant to the foregoing provisions of this Section 2.03(c) by
the time specified in Section 2.03(c)(ii), the L/C Issuer shall be
entitled to recover from such Revolving Lender (acting through the
Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment
is immediately available to the L/C Issuer at a rate per annum equal to the
greater of the Federal Funds Rate and a rate determined by the L/C Issuer in
accordance with banking industry rules on interbank compensation, plus any
administrative, processing or similar fees customarily charged by the L/C
Issuer in connection with the foregoing. 
If such Revolving Lender pays such amount (with interest and fees as
aforesaid), the amount so paid shall constitute such Revolving Lender’s
Committed Revolving Loan included in the Committed Borrowing or L/C Advance in
respect of the relevant L/C Borrowing, as the case may be.  A certificate of the L/C Issuer submitted to
any Revolving Lender (through the Administrative Agent) with respect to any
amounts owing under this clause (vi) shall be conclusive absent manifest error.

 30
 

 

(d)           Repayment
of Participations.

(i)            At
any time after the L/C Issuer has made a payment under any Letter of Credit and
has received from any Revolving Lender such Revolving Lender’s L/C Advance in
respect of such payment in accordance with Section 2.03(c), if the
Administrative Agent receives for the account of the L/C Issuer any payment in
respect of the related Unreimbursed Amount or interest thereon (whether directly
from the Borrower or otherwise, including proceeds of Cash Collateral applied
thereto by the Administrative Agent), the Administrative Agent will distribute
to such Revolving Lender its Applicable Percentage thereof in the same funds as
those received by the Administrative Agent.

(ii)           If
any payment received by the Administrative Agent for the account of the L/C
Issuer pursuant to Section 2.03(c)(i) is required to be returned under
any of the circumstances described in Section 10.05 (including pursuant
to any settlement entered into by the L/C Issuer in its discretion), each
Revolving Lender shall pay to the Administrative Agent for the account of the
L/C Issuer its Applicable Percentage thereof on demand of the Administrative
Agent, plus interest thereon from the date of such demand to the date such
amount is returned by such Revolving Lender, at a rate per annum equal to the
Federal Funds Rate from time to time in effect. 
The obligations of the Revolving Lenders under this clause shall survive
the payment in full of the Obligations and the termination of this Agreement.

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

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

(ii)           the existence of any claim, counterclaim,
setoff, defense or other right that the Borrower or any Subsidiary may have at
any time against any beneficiary or any transferee of such Letter of Credit (or
any Person for whom any such beneficiary or any such transferee may be acting),
the L/C Issuer or any other Person, whether in connection with this Agreement,
the transactions contemplated hereby or by such Letter of Credit or any
agreement or instrument relating thereto, or any unrelated transaction;

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

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

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

 31
 

 

 

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

(f)            Role of L/C Issuer.  Each Revolving Lender and the Borrower agree
that, in paying any drawing under a Letter of Credit, the L/C Issuer shall not
have any responsibility to obtain any document (other than any sight draft,
certificates and documents expressly required by the Letter of Credit) or to
ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document.  None of the L/C Issuer, the Administrative
Agent, any of their respective Related Parties nor any correspondent,
participant or assignee of the L/C Issuer shall be liable to any Revolving
Lender for (i) any action taken or omitted in connection herewith at the
request or with the approval of the Revolving Lenders or the Required Revolving
Lenders, as applicable; (ii) any action taken or omitted in the absence of
gross negligence or willful misconduct; or (iii) the due execution,
effectiveness, validity or enforceability of any document or instrument related
to any Letter of Credit or Issuer Document. 
The Borrower hereby assumes all risks of the acts or omissions of any
beneficiary or transferee with respect to its use of any Letter of Credit; provided,
however, that this assumption is not intended to, and shall not,
preclude the Borrower’s pursuing such rights and remedies as it may have
against the beneficiary or transferee at law or under any other agreement.  None of the L/C Issuer, the Administrative
Agent, any of their respective Related Parties nor any correspondent,
participant or assignee of the L/C Issuer shall be liable or responsible for
any of the matters described in clauses (i) through (v) of Section 2.03(e);
provided, however, that anything in such clauses to the contrary
notwithstanding, the Borrower may have a claim against the L/C Issuer, and the
L/C Issuer may be liable to the Borrower, to the extent, but only to the
extent, of any direct, as opposed to consequential or exemplary, damages
suffered by the Borrower which the Borrower proves were caused by the L/C
Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful
failure to pay under any Letter of Credit after the presentation to it by the
beneficiary of a sight draft and certificate(s) strictly complying with the
terms and conditions of a Letter of Credit or the L/C Issuer’s payment under
any Letter of Credit without presentation to it of a draft, certificates and/or
other documents that substantially comply with the terms and conditions of the
Letter of Credit.  In furtherance and not
in limitation of the foregoing, the L/C Issuer may accept documents that appear
on their face to be in order, without responsibility for further investigation,
regardless of any notice or information to the contrary, and the L/C Issuer
shall not be responsible for the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign a Letter of
Credit or the rights or benefits thereunder or proceeds thereof, in whole or in
part, which may prove to be invalid or ineffective for any reason.

(g)           Cash Collateral.  Upon the request of the Administrative Agent,
(i) if the L/C Issuer has honored any full or partial drawing request under any
Letter of Credit and such drawing has resulted in an L/C Borrowing, or (ii) if,
as of the Letter of Credit Expiration Date, any L/C Obligation for any reason
remains outstanding, the Borrower shall, in each case, immediately Cash
Collateralize the then Outstanding Amount of all L/C Obligations.  Sections 2.06 and 8.02(c) set
forth certain additional requirements to deliver Cash Collateral hereunder.  For purposes of this Section 2.03, Section
2.06 and Section 8.02(c), “Cash Collateralize” means to
pledge and deposit with or deliver to the Administrative Agent, for the benefit
of the L/C Issuer and the Revolving Lenders, as collateral for the L/C
Obligations, cash or deposit account balances pursuant to documentation in form
and substance satisfactory to the Administrative Agent and the L/C Issuer
(which documents are hereby consented to by the Lenders).  The Borrower hereby grants to the Administrative
Agent, for the benefit of the L/C Issuer and the Revolving Lenders, a security
interest in all such cash, deposit accounts and all balances therein and all
proceeds of the foregoing.  Cash Collateral
shall be maintained in blocked, interest bearing deposit accounts at Bank of
America.

 32
 

 

(h)           Applicability of ISP and UCP.  Unless otherwise expressly agreed by the L/C
Issuer and the Borrower when a Letter of Credit is issued, (i) the rules of the
ISP shall apply to each standby Letter of Credit, and (ii) the rules of the
Uniform Customs and Practice for Documentary Credits, as most recently
published by the International Chamber of Commerce at the time of issuance
shall apply to each commercial Letter of Credit.

(i)            Letter of Credit Fees.  The Borrower shall pay to the Administrative
Agent for the account of each Revolving Lender in accordance with its
Applicable Percentage a Letter of Credit fee (the “Letter of Credit Fee”)
for each Letter of Credit equal to the Applicable Rate times the daily amount
available to be drawn under such Letter of Credit.  For purposes of computing the daily amount
available to be drawn under any Letter of Credit, the amount of such Letter of
Credit shall be determined in accordance with Section 1.06.  Letter of Credit Fees shall be (i) computed
on a quarterly basis in arrears and (ii) due and payable on the first Business
Day after the end of each calendar quarter, commencing with the first such date
to occur after the issuance of such Letter of Credit, on the Letter of Credit
Expiration Date and thereafter on demand. 
If there is any change in the Applicable Rate during any quarter, the
daily amount available to be drawn under each Letter of Credit shall be
computed and multiplied by the Applicable Rate separately for each period
during such quarter that such Applicable Rate was in effect.  Notwithstanding anything to the contrary
contained herein, upon the request of the Required Lenders, while any Event of
Default exists, all Letter of Credit Fees shall accrue at the Default Rate.

(j)            Fronting Fee and Documentary and
Processing Charges Payable to L/C Issuer. 
The Borrower shall pay directly to the L/C Issuer for its own account a
fronting fee per annum with respect to each Letter of Credit, equal to the
greater of (i) the rate per annum of 12.5 basis points of the face amount of
the Letter of Credit, in each case computed on the daily amount available to be
drawn under such Letter of Credit and (ii) $1,250 per annum.  The amount of such fronting fees shall be
determined on a quarterly basis in arrears, and due and payable on the first
Business Day after the end of each calendar quarter, commencing with the first
such date to occur after the issuance of such Letter of Credit, on the Letter
of Credit Expiration Date and thereafter on demand.  For purposes of computing the daily amount
available to be drawn under any Letter of Credit, the amount of such Letter of
Credit shall be determined in accordance with Section 1.06.  In addition, the Borrower shall pay directly
to the L/C Issuer for its own account the customary issuance, presentation,
amendment and other processing fees, and other standard costs and charges, of
the L/C Issuer relating to letters of credit as from time to time in
effect.  Such customary fees and standard
costs and charges are due and payable on demand and are nonrefundable.

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

(l)            Letters of Credit Issued for
Subsidiaries.  Notwithstanding that a
Letter of Credit issued or outstanding hereunder is in support of any
obligations of, or is for the account of, a Subsidiary, the Borrower shall be
obligated to reimburse the L/C Issuer hereunder for any and all drawings under
such Letter of Credit.  The Borrower
hereby acknowledges that the issuance of Letters of Credit for the account of
Subsidiaries inures to the benefit of the Borrower, and that the Borrower’s
business derives substantial benefits from the businesses of such Subsidiaries.

(m)          Outstanding Letters of Credit.  The L/C Issuer shall deliver to the
Administrative Agent, for distribution to the Revolving Lenders, an accounting
of all Letters of Credit outstanding as of the end of each fiscal quarter of
the Borrower.

 33
 

 

2.04        Swing Line Loans.

(a)           The Swing Line.  Subject to the terms and conditions set forth
herein, the Swing Line Lender agrees, in reliance upon the agreements of the
other Lenders set forth in this Section 2.04, to make loans (each such
loan, a “Swing Line Loan”) to the Borrower from time to time on any
Business Day during the Availability Period in an aggregate amount not to
exceed at any time outstanding the amount of the Swing Line Sublimit,
notwithstanding the fact that such Swing Line Loans, when aggregated with the
Applicable Percentage of the Outstanding Amount of Committed Revolving Loans
and L/C Obligations of the Revolving Lender acting as Swing Line Lender, may exceed
the amount of such Revolving Lender’s Commitment; provided, however,
that after giving effect to any Swing Line Loan, (i) the Total Revolving
Outstandings shall not exceed the Aggregate Revolving Commitments, (ii) the
aggregate Outstanding Amount of the Committed Revolving Loans of any Revolving
Lender, plus such Revolving Lender’s Applicable Percentage of the
Outstanding Amount of all L/C Obligations, plus such Revolving Lender’s
Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall
not exceed such Revolving Lender’s Commitment, and (iii) the Borrower
shall not use the proceeds of any Swing Line Loan to refinance any outstanding
Swing Line Loan.  Within the foregoing limits,
and subject to the other terms and conditions hereof, the Borrower may borrow
under this Section 2.04, prepay under Section 2.06, and reborrow
under this Section 2.04.  Each
Swing Line Loan shall be a Base Rate Loan. 
Immediately upon the making of a Swing Line Loan, each Revolving Lender
shall be deemed to, and hereby irrevocably and unconditionally agrees to,
purchase from the Swing Line Lender a risk participation in such Swing Line
Loan in an amount equal to the product of such Revolving Lender’s Applicable
Percentage times the amount of such Swing Line Loan.

(b)           Borrowing Procedures.  Each Swing Line Borrowing shall be made upon
the Borrower’s irrevocable notice to the Swing Line Lender and the
Administrative Agent, which may be given by telephone.  Each such notice must be received by the
Swing Line Lender and the Administrative Agent not later than 1:00 p.m. on the
requested borrowing date, and shall specify (i) the amount to be borrowed,
which shall be a minimum of $100,000, and (ii) the requested borrowing date,
which shall be a Business Day.  Each such
telephonic notice must be confirmed promptly by delivery to the Swing Line
Lender and the Administrative Agent of a written Swing Line Loan Notice,
appropriately completed and signed by a Responsible Officer of the Borrower.  Promptly after receipt by the Swing Line
Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will
confirm with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has also received such Swing Line Loan Notice and, if not,
the Swing Line Lender will notify the Administrative Agent (by telephone or in
writing) of the contents thereof.  Unless
the Swing Line Lender has received notice (by telephone or in writing) from the
Administrative Agent (including at the request of any Lender) prior to 2:00
p.m. on the date of the proposed Swing Line Borrowing (A) directing the Swing
Line Lender not to make such Swing Line Loan as a result of the limitations set
forth in the proviso to the first sentence of Section 2.04(a), or (B)
that one or more of the applicable conditions specified in Article IV is
not then satisfied, then, subject to the terms and conditions hereof, the Swing
Line Lender will, not later than 3:00 p.m. on the borrowing date specified in
such Swing Line Loan Notice, make the amount of its Swing Line Loan available
to the Borrower at its office by crediting the account of the Borrower on the
books of the Swing Line Lender in immediately available funds.

(c)           Refinancing of Swing Line Loans.

(i)            The Swing Line Lender at any time in
its sole and absolute discretion may request, on behalf of the Borrower (which
hereby irrevocably authorizes the Swing Line Lender to so request on its
behalf), that each Revolving Lender make a Base Rate Committed Revolving Loan
in an amount equal to such Revolving Lender’s Applicable Percentage of the
amount of Swing Line Loans then outstanding. 
Such request shall be made in writing (which written request shall be
deemed to be a Committed Loan 

 34
 

 

Notice for
purposes hereof) and in accordance with the requirements of Section 2.02,
without regard to the minimum and multiples specified therein for the principal
amount of Base Rate Committed Revolving Loans, but subject to the unutilized
portion of the Aggregate Revolving Commitments and the conditions set forth in Section
4.02.  The Swing Line Lender shall
furnish the Borrower with a copy of the applicable Committed Loan Notice
promptly after delivering such notice to the Administrative Agent.  Each Revolving Lender shall make an amount
equal to its Applicable Percentage of the amount specified in such Committed
Loan Notice available to the Administrative Agent in immediately available
funds for the account of the Swing Line Lender at the Administrative Agent’s
Office not later than 1:00 p.m. on the day specified in such Committed Loan
Notice, whereupon, subject to Section 2.04(c)(ii), each Revolving Lender
that so makes funds available shall be deemed to have made a Base Rate
Committed Revolving Loan to the Borrower in such amount.  The Administrative Agent shall remit the
funds so received to the Swing Line Lender.

(ii)           If for any reason any Swing Line Loan
cannot be refinanced by such a Base Rate Committed Revolving Loan in accordance
with Section 2.04(c)(i), the request for Base Rate Committed Revolving
Loans submitted by the Swing Line Lender as set forth herein shall be deemed to
be a request by the Swing Line Lender that each of the Revolving Lenders fund
its risk participation in the relevant Swing Line Loan and each Revolving
Lender’s payment to the Administrative Agent for the account of the Swing Line
Lender pursuant to Section 2.04(c)(i) shall be deemed payment in respect
of such participation.

(iii)          If any Revolving Lender fails to make
available to the Administrative Agent for the account of the Swing Line Lender
any amount required to be paid by such Revolving Lender pursuant to the foregoing
provisions of this Section 2.04(c) by the time specified in Section
2.04(c)(i), the Swing Line Lender shall be entitled to recover from such
Revolving Lender (acting through the Administrative Agent), on demand, such
amount with interest thereon for the period from the date such payment is required
to the date on which such payment is immediately available to the Swing Line
Lender at a rate per annum equal to the greater of the Federal Funds Rate and a
rate determined by the Swing Line Lender in accordance with banking industry
rules on interbank compensation, plus any administrative, processing or similar
fees customarily charged by the Swing Line Lender in connection with the
foregoing.  If such Revolving Lender pays
such amount (with interest and fees as aforesaid), the amount so paid shall
constitute such Lender’s Committed Revolving Loan included in the relevant
Committed Borrowing or funded participation in the relevant Swing Line Loan, as
the case may be.  A certificate of the
Swing Line Lender submitted to any Lender (through the Administrative Agent)
with respect to any amounts owing under this clause (iii) shall be conclusive
absent manifest error.

(iv)          Each Revolving Lender’s obligation to
make Committed Loans or to purchase and fund risk participations in Swing Line
Loans pursuant to this Section 2.04(c) shall be absolute and unconditional
and shall not be affected by any circumstance, including (A) any setoff,
counterclaim, recoupment, defense or other right which such Revolving Lender
may have against the Swing Line Lender, the Borrower or any other Person for
any reason whatsoever, (B) the occurrence or continuance of a Default, or (C)
any other occurrence, event or condition, whether or not similar to any of the
foregoing; provided, however, that each Revolving Lender’s
obligation to make Committed Loans pursuant to this Section 2.04(c) is
subject to the conditions set forth in Section 4.02.  No such funding of risk participations shall
relieve or otherwise impair the obligation of the Borrower to repay Swing Line
Loans, together with interest as provided herein.

(d)           Repayment of Participations.

(i)            At
any time after any Revolving Lender has purchased and funded a risk
participation in a Swing Line Loan, if the Swing Line Lender receives any
payment on account of such Swing Line Loan, the Swing Line Lender will
distribute to such Revolving Lender its Applicable Percentage thereof in the
same funds as those received by the Swing Line Lender.

 35

 

(ii)           If
any payment received by the Swing Line Lender in respect of principal or interest
on any Swing Line Loan is required to be returned by the Swing Line Lender
under any of the circumstances described in Section 10.05 (including
pursuant to any settlement entered into by the Swing Line Lender in its
discretion), each Revolving Lender shall pay to the Swing Line Lender its
Applicable Percentage thereof on demand of the Administrative Agent, plus
interest thereon from the date of such demand to the date such amount is
returned, at a rate per annum equal to the Federal Funds Rate.  The Administrative Agent will make such
demand upon the request of the Swing Line Lender.  The obligations of the Revolving Lenders
under this clause shall survive the payment in full of the Obligations and the
termination of this Agreement.

(e)           Interest for
Account of Swing Line Lender.  The
Swing Line Lender shall be responsible for invoicing the Borrower for interest
on the Swing Line Loans.  Until each
Revolving Lender funds its Base Rate Committed Loan or risk participation
pursuant to this Section 2.04 to refinance such Revolving Lender’s
Applicable Percentage of any Swing Line Loan, interest in respect of such
Applicable Percentage shall be solely for the account of the Swing Line Lender.

(f)            Payments
Directly to Swing Line Lender.  The
Borrower shall make all payments of principal and interest in respect of the
Swing Line Loans directly to the Swing Line Lender.

2.05        Negotiated
Rate Loans.

(a)           Negotiated Rate
Loans.  Subject to the terms and
conditions set forth herein, each Revolving Lender, severally and for itself
alone, may (but is not obligated to) make one or more loans (each such loan, a “Negotiated
Rate Loan”) to the Borrower from time to time on any Business Day during
the Availability Period in an aggregate amount not to exceed at any time outstanding
the amount of the Negotiated Rate Sublimit, notwithstanding the fact that such
Negotiated Rate Loans, when aggregated with the Applicable Percentage of the
Outstanding Amount of Committed Loans and L/C Obligations of such Lender may
exceed the amount of such Lender’s Commitment; provided, that Total
Revolving Outstandings shall not exceed the Aggregate Revolving Commitments;
and, provided  further, that Negotiated Rate Loans shall be
available to the Borrower for periods of one day to 180 days, so long as both
the corporate rating of the Borrower by S&P is BBB- or better and the
senior implied rating of the Borrower by Moody’s is Baa3 or better.  It is understood that should a Lender make a
Negotiated Rate Loan it shall not relieve such Lender from its obligation to
make its pro rata share of any future Committed Revolving Loan even if after
making such Committed Revolving Loan the Outstanding Amount of Committed
Revolving Loans and L/C Obligations of such Lender, together with the
Outstanding Amount of its Negotiated Rate Loans, exceeds the amount such Lender’s
Revolving Commitment.

(b)           Procedure for
Negotiated Rate Loans.  The Borrower
may, from time to time, approach one or more of the Lenders to determine
whether such Lender or Lenders will make one or more Negotiated Rate
Loans.  The Borrower and any Lender or
Lenders shall, if each of them in their sole discretion elects to do so, agree
to enter into one or more Negotiated Rate Loans as part of such proposed
Negotiated Rate Borrowing on mutually agreed-upon terms, including the Interest
Period with respect thereto, and notify the Administrative Agent by delivering
a written Negotiated Rate Loan Notice from the Borrower and the Lender or
Lenders proposing to make Negotiated Rate Loans before 12 Noon on the date of
the funding of such Negotiated Rate Loan, which shall be a Business Day (the “Negotiated
Rate Funding Date”).  Such Negotiated
Rate Loan Notice shall specify the amount of each Negotiated Rate Loan that
such Lender or Lenders will make as part of such proposed Negotiated Rate
Borrowing, the 

 36
 

 

Negotiated Rate Funding Date, the date or dates of maturity thereof,
which date or dates may not occur after the Maturity Date, the rate or rates of
interest applicable thereto and all other terms thereof.  Each Negotiated Rate Loan shall be made
pursuant to a Negotiated Rate Loan Notice. 
In lieu of delivering the written Negotiated Rate Loan Notice described
above, the Borrower may give the Administrative Agent telephonic notice of any
Negotiated Rate Borrowing by the time required under this clause (a), provided
that such telephonic notice shall be confirmed by delivery of a written
Negotiated Rate Loan Notice to the Administrative Agent by no later than 2:00
p.m., on the date of such telephonic notice.

(c)           Funding of
Negotiated Rate Loans.  No later than
2:00 p.m. on the Negotiated Rate Funding Date, each applicable Lender will make
available to the Administrative Agent in dollars and immediately available
funds at the office of the Administrative Agent at its address set forth on the
signature pages hereof the Negotiated Rate Loan, if any, to be made by such
Lender as part of the Negotiated Rate Borrowing to be made on such date in the
manner provided above.  Upon receipt by
the Administrative Agent of all such funds, the Administrative Agent shall
disburse to the Borrower on such date such Negotiated Rate Loan in like funds
at the Borrower’s account specified in the relevant Negotiated Rate Loan
Notice.  The Administrative Agent may,
but shall not be required to, advance on behalf of any Lender such Lender’s
Negotiated Rate Loan on the date a Negotiated Rate Loan is made unless such
Lender shall have notified the Administrative Agent prior to such date that it
does not intend to make available such Negotiated Rate Loan on such date.  If the Administrative Agent makes such
advance, the Administrative Agent shall be entitled to recover such amount on
demand from the Lender on whose behalf such advance was made, and if such
Lender does not pay the Administrative Agent the amount of such advance on demand,
the Borrower shall promptly repay such amount to the Administrative Agent.  Until such amount is repaid to the
Administrative Agent by such Lender or the Borrower, such advance shall be
deemed for all purposes to be a Negotiated Rate Loan made by the Administrative
Agent.  In such event, if a Lender has
not in fact made its share of the applicable Negotiated Rate Loan available to
the Administrative Agent, then the applicable Lender and the Borrower severally
agree to pay to the Administrative Agent forthwith on demand such corresponding
amount in immediately available funds with interest thereon, for each day from
and including the date such amount is made available to the Borrower to but
excluding the date of payment to the Administrative Agent, at (A) in the case
of a payment to be made by such Lender, the greater of the Federal Funds Rate
and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation and (B) in the case of a payment to be
made by the Borrower, the interest rate applicable to Base Rate Loans.  If the Borrower and such Lender shall pay
such interest to the Administrative Agent for the same or an overlapping
period, the Administrative Agent shall promptly remit to the Borrower the
amount of such interest paid by the Borrower for such period.  Any payment by the Borrower shall be without
prejudice to any claim the Borrower may have against a Lender that shall have
failed to make such payment to the Administrative Agent.

2.06        Prepayments.

(a)           The Borrower may,
upon notice to the Administrative Agent, at any time or from time to time,
voluntarily prepay Committed Loans in whole or in part without premium or
penalty; provided that (i) such notice must be received by the
Administrative Agent not later than 11:00 a.m. (A) three Business Days
prior to any date of prepayment of Eurodollar Rate Loans and (B) on the date of
prepayment of Base Rate Committed Loans; (ii) any prepayment of Eurodollar Rate
Loans shall be in a principal amount of $1,000,000 or a whole multiple of
$100,000 in excess thereof; and (iii) any prepayment of Base Rate Committed
Loans shall be in a principal amount of $1,000,000 or a whole multiple of
$100,000 in excess thereof or, in each case, if less, the entire principal
amount thereof then outstanding.  Each
such notice shall specify the date and amount of such prepayment and the
Class(es) and Type(s) of Committed Loans to be prepaid.  The Administrative Agent will promptly notify
each Lender of the relevant Class of its receipt of each such notice, and of
the amount of such Lender’s Applicable Percentage of such 

 37
 

 

prepayment.  If such notice is
given by the Borrower, the Borrower shall make such prepayment and the payment
amount specified in such notice shall be due and payable on the date specified
therein.  Any prepayment of a Eurodollar
Rate Loan shall be accompanied by all accrued interest on the amount prepaid,
together with any additional amounts required pursuant to Section 3.05.  Each prepayment shall be made ratably among
the Lenders of the relevant Class in accordance with the Applicable
Percentages.  Any prepayment of Term
Loans pursuant to this Section 2.06(a) shall be applied in a manner
consistent with Section 2.08(c).

(b)           The Borrower may,
upon notice to the Swing Line Lender (with a copy to the Administrative Agent),
at any time or from time to time, voluntarily prepay Swing Line Loans in whole
or in part without premium or penalty; provided that (i) such notice
must be received by the Swing Line Lender and the Administrative Agent not
later than 1:00 p.m. on the date of the prepayment, and (ii) any such prepayment
shall be in a minimum principal amount of $100,000.  Each such notice shall specify the date and
amount of such prepayment.  If such
notice is given by the Borrower, the Borrower shall make such prepayment and
the payment amount specified in such notice shall be due and payable on the
date specified therein.

(c)           The Borrower may,
upon notice to the Administrative Agent, at any time or from time to time
voluntarily prepay Negotiated Rate Loans in whole or in part without premium or
penalty (unless the Borrower and the applicable Lender have otherwise agreed,
in which case such Loan may be prepaid in accordance with such agreement); provided
that (i) such notice must be received by the Administrative Agent not
later than 11:00 a.m. on the requested date of prepayment of such Negotiated
Rate Loans; (ii) the Lender or Lenders making the Negotiated Rate Loan
have consented to such prepayment; and (iii) unless agreed to by the
applicable Lender and the Administrative Agent (such consent not to be unreasonably
withheld), any prepayment of Negotiated Rate Loans shall be in a principal
amount of $500,000 or a whole multiple of $100,000 in excess thereof or, if
less, the entire principal amount thereof then outstanding. Each such notice
shall specify the date and amount of such prepayment.  The Administrative Agent will promptly notify
each applicable Lender of its receipt of each such notice, and of the amount of
such Lender’s Applicable Percentage of such prepayment.  If such notice is given by the Borrower, the
Borrower shall make such prepayment and the payment amount specified in such
notice shall be due and payable on the date specified therein.  Any prepayment of a Negotiated Rate Loan
shall be accompanied by all accrued interest on the amount prepaid, together
with any additional amounts as may be agreed to by the Borrower and the Lender
or Lenders making such Negotiated Rate Loan.

(d)           If for any reason
(i) the Total Revolving Outstandings at any time exceed the Aggregate Revolving
Commitments then in effect, (ii) the L/C Obligations at any time exceed the
Letter of Credit Sublimit then in effect, (iii) the Swing Line Loans
outstanding at any time exceed the Swing Line Sublimit then in effect or (iv)
the Negotiated Rate Loans outstanding at any time exceed the Negotiated Rate
Sublimit then in effect, the Borrower shall immediately prepay Committed
Revolving Loans and/or Cash Collateralize the L/C Obligations in an aggregate
amount equal to such excess; provided, however, that the Borrower
shall not be required to Cash Collateralize the L/C Obligations pursuant to
this Section 2.06(d)(i) unless after the prepayment in full of the
Committed Revolving Loans, the Swing Line Loans and the Negotiated Rate Loans,
the Total Revolving Outstandings exceed the Aggregate Revolving Commitments
then in effect.

(e)           Within three
Business Days after any Net Cash Proceeds are received by the Borrower or any
Subsidiary in respect of (i) any Disposition; or (ii) any Casualty
Event, the Borrower shall after application of any amounts required to be
applied pursuant to the Bridge Loan Agreement (as in effect on the Closing
Date), prepay Term Loans in the order provided in Section 2.08(c),
in an aggregate amount equal to (x) 50% of such Net Cash Proceeds, and
(y) the remainder of such Net Cash Proceeds not reinvested by the Borrower
or the relevant Subsidiary within 180 days of such Disposition or Casualty
Event, in each case less any portion of such proceeds that must be distributed
to maintain the Borrower’s status as a REIT.

 38
 

 

(f)            Within three
Business Days after any Net Cash Proceeds are received by the Borrower or any
Subsidiary in respect of any issuance of debt after the Closing Date (other than an issuance of debt
(i) in an aggregate amount up to $1,000,000 per annum for issuances of
debt not covered by the following clauses (ii) and (iii);
(ii) to refinance existing purchase money financing, up to the amount then
outstanding under such existing financing, or (iii) to provide mortgage
financing for the acquisition of new properties up to an aggregate amount in any
12-month period of $50,000,000), the Borrower shall, after application
of any amounts required to be applied pursuant to the Bridge Loan Agreement (as
in effect on the Closing Date), prepay Term Loans in the order provided in Section 2.08(c),
in an aggregate amount equal to 100% of such Net Cash Proceeds.

(g)           Within three
Business Days after any Net Cash Proceeds are received by the Borrower or any
Subsidiary in respect of any Public Equity Issuance or equity contribution
after the Closing Date, the Borrower shall, after application of any amounts
required to be applied pursuant to the Bridge Loan Agreement (as in effect on
the Closing Date), prepay Term Loans in the order provided in Section 2.08(c),
in an aggregate amount equal to 50% of such Net Cash Proceeds

2.07        Termination
or Reduction of Commitments.

(a)           Unless previously
terminated, (i) the Term Commitments will terminate on the earlier of (A) the
Closing Date immediately after the closing hereunder and (B) October 31, 2006
if the Closing Date has not occurred on or before such date, and (ii) the
Revolving Commitments will terminate on the Revolving Maturity Date.

(b)           The Borrower may,
upon notice to the Administrative Agent, terminate the Aggregate Revolving
Commitments, or from time to time permanently reduce the Aggregate Revolving
Commitments; provided that (i) any such notice shall be received by the
Administrative Agent not later than 12:00 Noon five Business Days prior to the
date of termination or reduction, (ii) any such partial reduction shall be in
an aggregate amount of $5,000,000 or any whole multiple of $1,000,000 in excess
thereof, (iii) the Borrower shall not terminate or reduce the Aggregate
Revolving Commitments if, after giving effect thereto and to any concurrent
prepayments hereunder, (A) the Total Revolving Outstandings would exceed the
Aggregate Revolving Commitments, (B) the Outstanding Amount of Letters of
Credit would exceed the Letter of Credit Sublimit, (C) the Outstanding Amount
of Swing Line Loans would exceed the Swing Line Sublimit or (D) the Outstanding
Amount of Negotiated Rate Loans would exceed the Negotiated Rate Sublimit.  The Administrative Agent will promptly notify
the Revolving Lenders of any such notice of termination or reduction of the
Aggregate Revolving Commitments.  Any
reduction of the Aggregate Revolving Commitments shall be applied to the
Revolving Commitment of each Revolving Lender according to its Applicable
Percentage.  All fees accrued until the
effective date of any termination of the Aggregate Revolving Commitments shall
be paid on the effective date of such termination.

2.08        Repayment.

(a)           The Borrower shall
repay to the Revolving Lenders on the Revolving Maturity Date, unless
accelerated sooner pursuant to Section 8.02, the entire outstanding principal
balance of all Committed Revolving Loans, Swing Line Loans, Negotiated Rate
Loans and all L/C Obligations, together with accrued but unpaid interest, fees
and all other sums with respect thereto.

 39
 

 

(b)           The Borrower shall repay to the Term
Lenders on the Term Loan Maturity Date, unless accelerated sooner pursuant to Section
8.02, the entire outstanding principal balance of all Term Loans, together
with accrued but unpaid interest, fees and all other sums owing with respect
thereto. Subject to adjustment pursuant to Section 2.06(a) and 2.08(c),
on the last Business Day of each fiscal quarter of the Borrower, the Borrower
shall repay Term Loans in an aggregate amount equal to the amount set forth
below opposite the last day of such fiscal quarter:

	
  Fiscal Quarter Ending

  	
   

  	
  Amount of Repayment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2006

  	
   

  	
  $

  	
  4,250,000.00

  	
   

  
	
  March 31, 2007

  	
   

  	
  $

  	
  4,250,000.00

  	
   

  
	
  June 30, 2007

  	
   

  	
  $

  	
  4,250,000.00

  	
   

  
	
  September 30,
  2007

  	
   

  	
  $

  	
  4,250,000.00

  	
   

  
	
  December 31,
  2007

  	
   

  	
  $

  	
  4,250,000.00

  	
   

  
	
  March 31, 2008

  	
   

  	
  $

  	
  4,250,000.00

  	
   

  
	
  June 30, 2008

  	
   

  	
  $

  	
  4,250,000.00

  	
   

  
	
  Term Loan Maturity Date

  	
   

  	
  $

  	
  1,670,250,000.00

  	
   

  

 

(c)           Any prepayment of Term Loans pursuant
to Section 2.06(a), (e), (f) or (g) shall be
applied, first, pro rata to the each of the remaining installments of the
Term Loans under subsection (b) above due prior to the Term Loan Maturity Date;
and, second, to reduce the remaining aggregate principal amount of the
Term Loans.

(d)           The Borrower shall repay each Swing
Line Loan on the earlier to occur of (i) the date five Business Days after such
Loan is made and (ii) the Revolving Maturity Date.

2.09        Interest.

(a)           Applicable Interest.  Subject to the provisions of subsection (b)
below, (i) each Eurodollar Rate Loan shall bear interest on the outstanding
principal amount thereof for each Interest Period at a rate per annum equal to
the Eurodollar Rate for such Interest Period plus the Applicable Rate; (ii)
each Base Rate Committed Loan shall bear interest on the outstanding principal
amount thereof from the applicable borrowing date at a rate per annum equal to
the Base Rate plus the Applicable Rate; (iii) each Swing Line Loan shall
bear interest on the outstanding principal amount thereof from the applicable
borrowing date at a rate per annum equal to the Base Rate plus the
Applicable Rate and (iv) each Negotiated Rate Loan shall bear interest on the
outstanding principal amount thereof for each Interest Period at a rate per
annum equal to the amount agreed to between the Borrower and the Lender as set
forth in the Negotiated Rate Loan Notice.

(b)           Default Interest.

(i)            If any amount of principal of any
Loan is not paid when due (without regard to any applicable grace periods),
whether at stated maturity, by acceleration or otherwise, such amount shall
thereafter bear interest at a fluctuating interest rate per annum at all times
equal to the Default Rate to the fullest extent permitted by applicable Laws.

(ii)           If any amount (other than principal
of any Loan) payable by the Borrower under any Loan Document is not paid when due
(without regard to any applicable grace periods), whether at stated maturity,
by acceleration or otherwise, then upon the request of the Required Lenders,
such amount shall thereafter bear interest at a fluctuating interest rate per
annum at all times equal to the Default Rate to the fullest extent permitted by
applicable Laws.

 40
 

 

(iii)          Upon the request of the Required
Lenders, while any Event of Default exists, the Borrower shall pay interest on
the principal amount of all outstanding Obligations hereunder at a fluctuating
interest rate per annum at all times equal to the Default Rate to the fullest
extent permitted by applicable Laws.

(iv)          Accrued and unpaid interest on past
due amounts (including interest on past due interest) shall be due and payable
upon demand.

(c)           Interest Payment Date.  Interest on each Loan shall be due and
payable in arrears on each Interest Payment Date applicable thereto and at such
other times as may be specified herein. 
Interest hereunder shall be due and payable in accordance with the terms
hereof before and after judgment, and before and after the commencement of any
proceeding under any Debtor Relief Law.

2.10        Fees.

In
addition to certain fees described in subsections (i) and (j) of Section
2.03:

(a)           Facility Fee.  The Borrower shall pay to the Administrative
Agent for the account of each Revolving Lender in accordance with its
Applicable Percentage, a facility fee equal to the Facility Fee Rate times
the actual daily amount of the Aggregate Revolving Commitments (or, if the Aggregate
Revolving Commitments have terminated, on the Outstanding Amount of all
Committed Revolving Loans, Swing Line Loans, Negotiated Rate Loans and L/C
Obligations), regardless of usage.  The
facility fee shall accrue at all times during the Availability Period (and
thereafter so long as any Committed Revolving Loans, Swing Line Loans,
Negotiated Rate Loans or L/C Obligations remain outstanding), including at any
time during which one or more of the conditions in Article IV is
not met, and shall be due and payable quarterly in arrears (calculated on a
360-day basis) on the last Business Day of each calendar quarter, commencing
with the first such date to occur after the Closing Date, and on the Revolving
Maturity Date (and, if applicable, thereafter on demand).  The facility fee shall be calculated
quarterly in arrears, and if there is any change in the Facility Fee Rate
during any quarter, the actual daily amount shall be computed and multiplied by
the Facility Fee Rate separately for each period during such quarter that such
Facility Fee Rate was in effect.

(b)           Other Fees.

(i)            The
Borrower shall pay to the Arrangers and the Administrative Agent for their own
respective accounts fees in the amounts and at the times specified in the Fee
Letter.  Such fees shall be fully earned
when paid and shall not be refundable for any reason whatsoever.

(ii)           The
Borrower shall pay to the Lenders such fees as shall have been separately
agreed upon in writing in the amounts and at the times so specified.  Such fees shall be fully earned when paid and
shall not be refundable for any reason whatsoever.

2.11        Computation of Interest and Fees.

All
computations of interest for Base Rate Loans when the Base Rate is determined
by Bank of America’s “prime rate” shall be made on the basis of a year of 365
or 366 days, as the case may be, and actual days elapsed.  All other computations of fees and interest
shall be made on the basis of a 360-day year and actual days elapsed (which
results in more fees or interest, as applicable, being paid than if computed on
the basis of a 365-day year).  Interest
shall accrue on each Loan for the day on which the Loan is made, and shall not
accrue on a Loan, or any portion thereof, for the day on which the Loan or such
portion is paid, provided that any Loan that is repaid on the same day
on which it is made shall, subject to Section 2.13(a), bear interest for
one day.  Each determination by the
Administrative Agent of an interest rate or fee hereunder shall be conclusive
and binding for all purposes, absent manifest error.

 41
 

 

2.12        Evidence of Debt.

(a)           The Credit Extensions made by each
Lender shall be evidenced by one or more accounts or records maintained by such
Lender and by the Administrative Agent in the ordinary course of business.  The accounts or records maintained by the
Administrative Agent and each Lender shall be conclusive absent manifest error
of the amount of the Credit Extensions made by the Lenders to the Borrower and
the interest and payments thereon.  Any
failure to so record or any error in doing so shall not, however, limit or
otherwise affect the obligation of the Borrower hereunder to pay any amount
owing with respect to the Obligations. 
In the event of any conflict between the accounts and records maintained
by any Lender and the accounts and records of the Administrative Agent in
respect of such matters, the accounts and records of the Administrative Agent
shall control in the absence of manifest error. 
Upon the request of any Lender made through the Administrative Agent,
the Borrower shall execute and deliver to such Lender (through the
Administrative Agent) a Note, which shall evidence such Lender’s Loans in
addition to such accounts or records. 
Each Lender may attach schedules to its Note and endorse thereon the
date, Type (if applicable), amount and maturity of its Loans and payments with
respect thereto.

(b)           In addition to the accounts and
records referred to in subsection (a), each Lender and the Administrative Agent
shall maintain in accordance with its usual practice accounts or records evidencing
the purchases and sales by such Lender of participations in Letters of Credit
and Swing Line Loans.  In the event of
any conflict between the accounts and records maintained by the Administrative
Agent and the accounts and records of any Lender in respect of such matters,
the accounts and records of the Administrative Agent shall control in the
absence of manifest error.

2.13        Payments Generally; Administrative
Agent’s Clawback.

(a)           General.  All payments to be made by the Borrower shall
be made without condition or deduction for any counterclaim, defense,
recoupment or setoff.  Except as
otherwise expressly provided herein, all payments by the Borrower hereunder
shall be made to the Administrative Agent, for the account of the respective
Lenders to which such payment is owed, at the Administrative Agent’s Office in
Dollars and in immediately available funds not later than 2:00 p.m. on the date
specified herein.  The Administrative
Agent will promptly distribute to each Lender its Applicable Percentage (or
other applicable share as provided herein) of such payment in like funds as
received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative
Agent after 2:00 p.m. shall be deemed received on the next succeeding Business
Day and any applicable interest or fee shall continue to accrue.  If any payment to be made by the Borrower
shall come due on a day other than a Business Day, payment shall be made on the
next following Business Day, and such extension of time shall be reflected in
computing interest or fees, as the case may be.

(b)           (i) 
Funding by Lenders; Presumption by Administrative Agent.  Unless the Administrative Agent shall have
received notice from a Lender prior to the proposed date of any Committed Borrowing
of Eurodollar Rate Loans (or, in the case of any Committed Borrowing of Base
Rate Loans, prior to 12:00 noon on the date of such Committed Borrowing) that
such Lender will not make available to the Administrative Agent such Lender’s
share of such Committed Borrowing, the Administrative Agent may assume that
such Lender has made such share available on such date in accordance with Section
2.02 (or, in the case of a Committed Borrowing of Base Rate Loans, that
such Lender has made such share available in accordance with and at the time
required by Section 2.02) and may, in reliance upon such assumption,
make available to the Borrower a corresponding amount.  In such 

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event, if a Lender has not in fact made its
share of the applicable Committed Borrowing available to the Administrative
Agent, then the applicable Lender and the Borrower severally agree to pay to
the Administrative Agent forthwith on demand such corresponding amount in
immediately available funds with interest thereon, for each day from and
including the date such amount is made available to the Borrower to but
excluding the date of payment to the Administrative Agent, at (A) in the case
of a payment to be made by such Lender, the greater of the Federal Funds Rate
and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation, plus any administrative, processing
or similar fees customarily charged by the Administrative Agent in connection
with the foregoing, and (B) in the case of a payment to be made by the
Borrower, the interest rate applicable to Base Rate Loans.  If the Borrower and such Lender shall pay
such interest to the Administrative Agent for the same or an overlapping
period, the Administrative Agent shall promptly remit to the Borrower the
amount of such interest paid by the Borrower for such period.  If such Lender pays its share of the
applicable Committed Borrowing to the Administrative Agent, then the amount so
paid shall constitute such Lender’s Committed Loan included in such Committed
Borrowing.  Any payment by the Borrower
shall be without prejudice to any claim the Borrower may have against a Lender
that shall have failed to make such payment to the Administrative Agent.

(ii)           Payments by the Borrower;
Presumptions by Administrative Agent. 
Unless the Administrative Agent shall have received notice from the
Borrower prior to the date on which any payment is due to the Administrative
Agent for the account of the Lenders or the L/C Issuer hereunder that the
Borrower will not make such payment, the Administrative Agent may assume that
the Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to the Lenders or the L/C Issuer,
as the case may be, the amount due.  In
such event, if the Borrower has not in fact made such payment, then each of the
Lenders or the L/C Issuer, as the case may be, severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such
Lender or the L/C Issuer, in immediately available funds with interest thereon,
for each day from and including the date such amount is distributed to it to
but excluding the date of payment to the Administrative Agent, at the greater
of the Federal Funds Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation.

A
notice of the Administrative Agent to any Lender or the Borrower with respect
to any amount owing under this subsection (b) shall be conclusive, absent
manifest error.

(c)           Failure to Satisfy Conditions
Precedent.  If any Lender makes
available to the Administrative Agent funds for any Loan to be made by such
Lender as provided in the foregoing provisions of this Article II, and such
funds are not made available to the Borrower by the Administrative Agent because
the conditions to the applicable Credit Extension set forth in Article IV
are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from
such Lender) to such Lender, without interest.

(d)           Obligations of Lenders Several.  The obligations of the Lenders hereunder to
make Committed Loans, to fund participations in Letters of Credit and Swing Line
Loans and to make payments pursuant to Section 10.04(c) are several and
not joint.  The failure of any Lender to
make any Committed Loan, to fund any such participation or to make any payment
under Section 10.04(c) on any date required hereunder shall not relieve
any other Lender of its corresponding obligation to do so on such date, and no
Lender shall be responsible for the failure of any other Lender to so make its
Committed Loan, to purchase its participation or to make its payment under Section
10.04(c).

(e)           Funding Source.  Nothing herein shall be deemed to obligate
any Lender to obtain the funds for any Loan in any particular place or manner
or to constitute a representation by any Lender that it has obtained or will
obtain the funds for any Loan in any particular place or manner.

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2.14        Sharing of Payments by Lenders.

If
any Lender shall, by exercising any right of setoff or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of
the Committed Loans made by it, or the participations in L/C Obligations or in
Swing Line Loans held by it resulting in such Lender’s receiving payment of a
proportion of the aggregate amount of such Committed Loans or participations
and accrued interest thereon greater than its pro  rata share
thereof as provided herein, then the Lender receiving such greater proportion
shall (a) notify the Administrative Agent of such fact, and (b) purchase (for
cash at face value) participations in the Committed Loans and subparticipations
in L/C Obligations and Swing Line Loans of the other Lenders, or make such
other adjustments as shall be equitable, so that the benefit of all such
payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective
Committed Loans and other amounts owing them, provided that:

(i)            if
any such participations or subparticipations are purchased and all or any portion
of the payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the
extent of such recovery, without interest; and

(ii)           the
provisions of this Section shall not be construed to apply to (x) any payment
made by the Borrower pursuant to and in accordance with the express terms of
this Agreement or (y) any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Committed Loans or
subparticipations in L/C Obligations or Swing Line Loans to any assignee or
participant, other than to the Borrower or any Subsidiary thereof (as to which
the provisions of this Section shall apply).

Each
Loan Party consents to the foregoing and agrees, to the extent it may
effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against such
Loan Party rights of setoff and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation.

2.15        Extension of Maturity Date.

No
earlier than 90 days prior to the Initial Maturity Date and no later than 60
days prior to the Initial Maturity Date, the Borrower may request a one-time
twelve month extension of the Revolving Maturity Date to the first anniversary
of the Initial Maturity Date.  Subsequent
to such request from the Borrower, the Revolving Maturity Date shall be
extended to the first anniversary of the Initial Maturity Date upon
satisfaction of the following conditions: 
(a) no Default or Event of Default shall exist at the time of the
request or on the Initial Maturity Date and (b) the Borrower shall pay to
the Revolving Lenders on the Initial Maturity Date a fee (to be shared among
the Revolving Lenders based upon their pro  rata share of the
Aggregate Revolving Commitments) equal to the product of (i) 0.15% multiplied
by (ii) the then Aggregate Revolving Commitments.

2.16        Increase in Commitments.

(a)           Request for Increase.  From time to time, the Borrower shall have
the right to increase the Aggregate Revolving Commitments; provided that
(i) no Default or Event of Default exists and is continuing, (ii) each increase
must be in a minimum amount of $10,000,000 and in integral multiples of
$5,000,000 in excess thereof, and (iii) the Aggregate Revolving Commitments
cannot be increased to an amount in excess of $1,500,000,000.  At the time of sending such notice, the
Borrower (in consultation with the Administrative Agent) shall specify the time
period within which each Revolving Lender is requested to respond (which shall
in no event be less than ten Business Days from the date of delivery of such
notice to the Revolving Lenders).

 44
 

 

(b)           Lender Elections to Increase.  Each Revolving Lender shall notify the
Administrative Agent within such time period whether or not it agrees to
increase its Revolving Commitment and, if so, whether by an amount equal to,
greater than, or less than its Applicable Percentage of such requested increase.  Any Revolving Lender not responding within
such time period shall be deemed to have declined to increase its Revolving Commitment.  Any such increase shall be syndicated on a
best efforts basis and no Lender shall be required to increase its Revolving
Commitment to facilitate such increase.

(c)           Notification by Administrative
Agent; Additional Lenders.  The
Administrative Agent shall notify the Borrower and each Revolving Lender of the
Revolving Lenders’ responses to each request made hereunder.  To achieve the full amount of a requested increase
and subject to the approval of the Administrative Agent and the L/C Issuer
(which approvals shall not be unreasonably withheld), the Borrower may also
invite additional Eligible Assignees to become Revolving Lenders pursuant to a
joinder agreement in form and substance satisfactory to the Administrative
Agent and its counsel.

(d)           Effective Date and Allocations.  If the Aggregate Revolving Commitments are
increased in accordance with this Section, the Administrative Agent and the
Borrower shall determine the effective date (the “Increase Effective Date”)
and the final allocation of such increase. 
The Administrative Agent shall promptly notify the Borrower and the
Revolving Lenders of the final allocation of such increase and the Increase
Effective Date.

(e)           Conditions to Effectiveness of
Increase.  As a condition precedent
to such increase, the Borrower shall deliver to the Administrative Agent a
certificate of the Borrower dated as of the Increase Effective Date (in
sufficient copies for each Revolving Lender) signed by a Responsible Officer of
the Borrower (i) certifying and attaching the resolutions adopted by the
Borrower approving or consenting to such increase, and (ii) certifying that,
before and after giving effect to such increase, (A) the representations and
warranties contained in Article V and the other Loan Documents are true
and correct on and as of the Increase Effective Date, except to the extent that
such representations and warranties specifically refer to an earlier date, in
which case they are true and correct as of such earlier date, and except that
for purposes of this Section, the representations and warranties contained in
subsections (a) and (b) of Section 5.05 shall be deemed to refer to the
most recent statements furnished pursuant to clauses (a) and (b), respectively,
of Section 6.01, and (B) no Default exists.  The Borrower shall prepay any Committed
Revolving Loans outstanding on the Increase Effective Date (and pay any
additional amounts required pursuant to Section 3.05) to the extent
necessary to keep the outstanding Committed Revolving Loans ratable with any
revised Applicable Percentages arising from any nonratable increase in the
Commitments under this Section and shall provide a Note to any new Revolving
Lender joining in the Increase Effective Date, if requested.

(f)            Conflicting Provisions.  This Section shall supersede any provisions
in Sections 2.14 or 10.01 to the contrary.

(g)           Fees.  The Borrower shall pay such fees to the
Administrative Agent, for its own account and for the benefit of the Revolving
Lenders providing such additional Commitments, as determined at the time of
such increase.

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ARTICLE
III

TAXES, YIELD PROTECTION AND ILLEGALITY

3.01        Taxes.

(a)           Payments Free of Taxes.  Any and all payments by or on account of any
obligation of the Loan Parties hereunder or under any other Loan Document shall
be made free and clear of and without reduction or withholding for any
Indemnified Taxes or Other Taxes, provided that if the Loan Parties
shall be required by applicable law to deduct any Indemnified Taxes (including
any Other Taxes) from such payments, then (i) the sum payable shall be
increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section) the Administrative
Agent, Lender or L/C Issuer, as the case may be, receives an amount equal to
the sum it would have received had no such deductions been made, (ii) the
applicable Loan Party shall make such deductions and (iii) the applicable Loan
Party shall timely pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

(b)           Payment of Other Taxes by the
Borrower.  Without limiting the
provisions of subsection (a) above, the Borrower shall timely pay any Other
Taxes to the relevant Governmental Authority in accordance with applicable law.

(c)           Indemnification by the Borrower.  The Borrower shall indemnify the Administrative
Agent, each Lender and the L/C Issuer, within 10 days after demand therefor,
for the full amount of any Indemnified Taxes or Other Taxes (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
amounts payable under this Section) paid by the Administrative Agent, such
Lender or the L/C Issuer, as the case may be, and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not
such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment
delivered to the Borrower by a Lender or the L/C Issuer (with a copy to the
Administrative Agent), or by the Administrative Agent on its own behalf or on
behalf of a Lender or the L/C Issuer, shall be conclusive absent manifest
error.

(d)           Evidence of Payments.  As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority,
the Borrower shall deliver to the Administrative Agent the original or a
certified copy of a receipt issued by such Governmental Authority evidencing
such payment, a copy of the return reporting such payment or other evidence of
such payment reasonably satisfactory to the Administrative Agent.

(e)           Status of Lenders.  Any Foreign Lender that is entitled to an
exemption from or reduction of withholding tax under the law of the
jurisdiction in which the Borrower is resident for tax purposes, or any treaty
to which such jurisdiction is a party, with respect to payments hereunder or
under any other Loan Document shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law or
reasonably requested by the Borrower or the Administrative Agent, such properly
completed and executed documentation prescribed by applicable law as will
permit such payments to be made without withholding or at a reduced rate of
withholding.  In addition, any Lender, if
requested by the Borrower or the Administrative Agent, shall deliver such other
documentation prescribed by applicable law or reasonably requested by the
Borrower or the Administrative Agent as will enable the Borrower or the
Administrative Agent to determine whether or not such Lender is subject to
backup withholding or information reporting requirements.

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Without
limiting the generality of the foregoing, in the event that the Borrower is
resident for tax purposes in the United States, any Foreign Lender shall
deliver to the Borrower and the Administrative Agent (in such number of copies
as shall be requested by the recipient) on or prior to the date on which such
Foreign Lender becomes a Lender under this Agreement (and from time to time
thereafter upon the request of the Borrower or the Administrative Agent, but
only if such Foreign Lender is legally entitled to do so), whichever of the
following is applicable:

(i)            duly
completed copies of Internal Revenue Service Form W-8BEN claiming eligibility
for benefits of an income tax treaty to which the United States is a party,

(ii)           duly
completed copies of Internal Revenue Service Form W-8ECI,

(iii)          in
the case of a Foreign Lender claiming the benefits of the exemption for portfolio
interest under section 881(c) of the Code, (x) a certificate to the effect that
such Foreign Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A)
of the Code, (B) a “10 percent shareholder” of the Borrower within the meaning
of section 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation”
described in section 881(c)(3)(C) of the Code and (y) duly completed copies of
Internal Revenue Service Form W-8BEN, or

(iv)          any
other form prescribed by applicable law as a basis for claiming exemption from
or a reduction in United States Federal withholding tax duly completed together
with such supplementary documentation as may be prescribed by applicable law to
permit the Borrower to determine the withholding or deduction required to be
made.

(f)            Treatment of Certain Refunds.  If the Administrative Agent, any Lender or
the L/C Issuer determines, in its sole discretion, that it has received a
refund of any Taxes or Other Taxes as to which it has been indemnified by the
Borrower or with respect to which the Borrower has paid additional amounts
pursuant to this Section, it shall pay to the Borrower an amount equal to such
refund (but only to the extent of indemnity payments made, or additional
amounts paid, by the Borrower under this Section with respect to the Taxes or
Other Taxes giving rise to such refund), net of all out-of-pocket expenses of
the Administrative Agent, such Lender or the L/C Issuer, as the case may be,
and without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund), provided that the Borrower, upon
the request of the Administrative Agent, such Lender or the L/C Issuer, agrees
to repay the amount paid over to the Borrower (plus any penalties, interest or
other charges imposed by the relevant Governmental Authority) to the
Administrative Agent, such Lender or the L/C Issuer in the event the
Administrative Agent, such Lender or the L/C Issuer is required to repay such
refund to such Governmental Authority. 
This subsection shall not be construed to require the Administrative
Agent, any Lender or the L/C Issuer to make available its tax returns (or any
other information relating to its taxes that it deems confidential) to the
Borrower or any other Person.

3.02        Illegality.

If
any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its
applicable Lending Office to make, maintain or fund Eurodollar Rate Loans, or
to determine or charge interest rates based upon the Eurodollar Rate, or any
Governmental Authority has imposed material restrictions on the authority of
such Lender to purchase or sell, or to take deposits of, Dollars in the London
interbank market, then, on notice thereof by such Lender to the Borrower
through the Administrative Agent, any obligation of such Lender to make or
continue Eurodollar Rate Loans or to convert Base Rate Committed Loans to
Eurodollar Rate Loans shall be suspended until such Lender notifies the
Administrative Agent and the Borrower that the circumstances giving rise to
such determination no longer exist.  Upon
receipt of such notice, the Borrower shall, upon 

 47
 

 

demand
from such Lender (with a copy to the Administrative Agent), prepay or, if
applicable, convert all Eurodollar Rate Loans of such Lender to Base Rate
Loans, either on the last day of the Interest Period therefor, if such Lender
may lawfully continue to maintain such Eurodollar Rate Loans to such day, or
immediately, if such Lender may not lawfully continue to maintain such
Eurodollar Rate Loans.  Upon any such
prepayment or conversion, the Borrower shall also pay accrued interest on the
amount so prepaid or converted.

3.03        Inability to Determine Rates.

If
the Required Lenders determine that for any reason in connection with any
request for a Eurodollar Rate Loan or a conversion to or continuation thereof
that (a) Dollar deposits are not being offered to banks in the London interbank
eurodollar market for the applicable amount and Interest Period of such
Eurodollar Rate Loan, (b) adequate and reasonable means do not exist for
determining the Eurodollar Rate for any requested Interest Period with respect to
a proposed Eurodollar Rate Loan, or (c) the Eurodollar Rate for any requested
Interest Period with respect to a proposed Eurodollar Rate Loan does not
adequately and fairly reflect the cost to such Lenders of funding such Loan,
the Administrative Agent will promptly so notify the Borrower and each
Lender.  Thereafter, the obligation of
the Lenders to make or maintain Eurodollar Rate Loans shall be suspended until
the Administrative Agent (upon the instruction of the Required Lenders) revokes
such notice.  Upon receipt of such notice,
the Borrower may revoke any pending request for a Borrowing of, conversion to
or continuation of Eurodollar Rate Loans or, failing that, will be deemed to
have converted such request into a request for a Committed Borrowing of Base
Rate Loans in the amount specified therein.

3.04        Increased Costs; Reserves on
Eurodollar Rate Loans.

(a)           Increased Costs Generally.  If any Change in Law shall:

(i)            impose,
modify or deem applicable any reserve, special deposit, compulsory loan, insurance
charge or similar requirement against assets of, deposits with or for the
account of, or credit extended or participated in by, any Lender (except any
reserve requirement contemplated by Section 3.04(e)) or the L/C Issuer;

(ii)           subject
any Lender or the L/C Issuer to any tax of any kind whatsoever with respect to
this Agreement, any Letter of Credit, any participation in a Letter of Credit
or any Eurodollar Loan made by it, or change the basis of taxation of payments
to such Lender or the L/C Issuer in respect thereof (except for Indemnified
Taxes or Other Taxes covered by Section 3.01 and the imposition of, or
any change in the rate of, any Excluded Tax payable by such Lender or the L/C
Issuer); or

(iii)          impose
on any Lender or the L/C Issuer or the London interbank market any other
condition, cost or expense affecting this Agreement or Eurodollar Loans made by
such Lender or any Letter of Credit or participation therein;

and
the result of any of the foregoing shall be to increase the cost to such Lender
of making or maintaining any Eurodollar Loan (or of maintaining its obligation
to make any such Loan), or to increase the cost to such Lender or the L/C
Issuer of participating in, issuing or maintaining any Letter of Credit (or of
maintaining its obligation to participate in or to issue any Letter of Credit),
or to reduce the amount of any sum received or receivable by such Lender or the
L/C Issuer hereunder (whether of principal, interest or any other amount) then,
upon request of such Lender or the L/C Issuer, the Borrower will pay to such
Lender or the L/C Issuer, as the case may be, such additional amount or amounts
as will compensate such Lender or the L/C Issuer, as the case may be, for such
additional costs incurred or reduction suffered.

 48
 

 

(b)           Capital Requirements.  If any Lender or the L/C Issuer determines
that any Change in Law affecting such Lender or the L/C Issuer or any Lending
Office of such Lender or such Lender’s or the L/C Issuer’s holding company, if
any, regarding capital requirements has or would have the effect of reducing
the rate of return on such Lender’s or the L/C Issuer’s capital or on the
capital of such Lender’s or the L/C Issuer’s holding company, if any, as a
consequence of this Agreement, the Commitments of such Lender or the Loans made
by, or participations in Letters of Credit held by, such Lender, or the Letters
of Credit issued by the L/C Issuer, to a level below that which such Lender or
the L/C Issuer or such Lender’s or the L/C Issuer’s holding company could have
achieved but for such Change in Law (taking into consideration such Lender’s or
the L/C Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s
holding company with respect to capital adequacy), then from time to time the
Borrower will pay to such Lender or the L/C Issuer, as the case may be, such
additional amount or amounts as will compensate such Lender or the L/C Issuer
or such Lender’s or the L/C Issuer’s holding company for any such reduction
suffered.

(c)           Certificates for Reimbursement.
 A certificate of a Lender or the L/C
Issuer setting forth the amount or amounts necessary to compensate such Lender
or the L/C Issuer or its holding company, as the case may be, as specified in
subsection (a) or (b) of this Section and delivered to the Borrower, in detail
sufficient to enable the Borrower to verify the computation thereof, shall be
conclusive absent manifest error.  The
Borrower shall pay such Lender or the L/C Issuer, as the case may be, the
amount shown as due on any such certificate within 10 days after receipt
thereof.

(d)           Delay in Requests.  Failure or delay on the part of any Lender or
the L/C Issuer to demand compensation pursuant to the foregoing provisions of
this Section shall not constitute a waiver of such Lender’s or the L/C Issuer’s
right to demand such compensation, provided that the Borrower shall not
be required to compensate a Lender or the L/C Issuer pursuant to the foregoing
provisions of this Section for any increased costs incurred or reductions
suffered more than nine months prior to the date that such Lender or the L/C
Issuer, as the case may be, notifies the Borrower of the Change in Law giving
rise to such increased costs or reductions and of such Lender’s or the L/C
Issuer’s intention to claim compensation therefor (except that, if the Change
in Law giving rise to such increased costs or reductions is retroactive, then
the nine month period referred to above shall be extended to include the period
of retroactive effect thereof).

(e)           Reserves on Eurodollar Rate Loans.  The Borrower shall pay to each Lender, as
long as such Lender shall be required to maintain reserves with respect to
liabilities or assets consisting of or including Eurocurrency funds or deposits
(currently known as “Eurocurrency liabilities”), additional interest on the
unpaid principal amount of each Eurodollar Rate Loan equal to the actual costs
of such reserves allocated to such Loan by such Lender (as determined by such
Lender in good faith, which determination shall be conclusive), which shall be
due and payable on each date on which interest is payable on such Loan, provided
the Borrower shall have received at least 10 days’ prior notice (with a copy to
the Administrative Agent) of such additional interest from such Lender.  If a Lender fails to give notice 10 days
prior to the relevant Interest Payment Date, such additional interest shall be
due and payable 10 days from receipt of such notice.

3.05        Compensation for Losses.

Upon
demand of any Lender (with a copy to the Administrative Agent) from time to
time, the Borrower shall promptly compensate such Lender for and hold such
Lender harmless from any loss, cost or expense (other than loss of anticipated
profits) incurred by it as a result of:

 49
 

 

(a)           any continuation, conversion, payment
or prepayment of any Loan other than a Base Rate Loan on a day other than the
last day of the Interest Period for such Loan (whether voluntary, mandatory,
automatic, by reason of acceleration, or otherwise);

(b)           any failure by the Borrower (for a
reason other than the failure of such Lender to make a Loan) to prepay, borrow,
continue or convert any Loan other than a Base Rate Loan on the date or in the
amount notified by the Borrower; or

(c)           any assignment of a Eurodollar Rate
Loan on a day other than the last day of the Interest Period therefor as a
result of a request by the Borrower pursuant to Section 10.13.

The Borrower shall also pay any customary administrative fees charged
by such Lender in connection with the foregoing.

For
purposes of calculating amounts payable by the Borrower to the Lenders under
this Section 3.05, each Lender shall be deemed to have funded each
Eurodollar Rate Loan made by it at the Eurodollar Rate for such Loan by a
matching deposit or other borrowing in the London interbank eurodollar market
for a comparable amount and for a comparable period, whether or not such Eurodollar
Rate Loan was in fact so funded.

3.06        Mitigation Obligations; Replacement
of Lenders.

(a)           Designation of a Different Lending
Office.  If any Lender requests
compensation under Section 3.04, or the Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 3.01, or if any Lender gives a notice
pursuant to Section 3.02, then such Lender shall use reasonable efforts
to designate a different Lending Office for funding or booking its Loans
hereunder or to assign its rights and obligations hereunder to another of its
offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant
to Section 3.01 or 3.04, as the case may be, in the future, or
eliminate the need for the notice pursuant to Section 3.02, as applicable,
and (ii) in each case, would not subject such Lender to any unreimbursed cost
or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any
such designation or assignment.

(b)           Replacement of Lenders.  If any Lender requests compensation under Section
3.04, or if the Borrower is required to pay any additional amount to any
Lender or any Governmental Authority for the account of any Lender pursuant to Section
3.01, the Borrower may replace such Lender in accordance with Section
10.13.

3.07        Survival.

All
of the Borrower’s obligations under this Article III shall survive
termination of the Aggregate Commitments and repayment of all other Obligations
hereunder.

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ARTICLE
IV

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

4.01        Conditions of Initial Credit
Extension.

The
effectiveness of this Agreement and the obligation of the L/C Issuer and of
each Lender to make its initial Credit Extension hereunder are subject to
satisfaction of the following conditions precedent:

(a)           The Administrative Agent’s receipt of
the following, each of which shall be originals or telecopies (followed
promptly by originals) unless otherwise specified, each properly executed by a
Responsible Officer of the Borrower, each dated the Closing Date (or, in the
case of certificates of governmental officials, a recent date before the
Closing Date) and each in form and substance satisfactory to the Administrative
Agent and each of the Lenders:

(i)            executed
counterparts, sufficient in number for distribution to the Administrative
Agent, each Lender and the Borrower, of this Agreement, executed and delivered
by the Administrative Agent, the Borrower and each Lender listed on Schedule
2.01;

(ii)           a Note executed by
the Borrower in favor of each Lender requesting a Note;

(iii)          such certificates
of resolutions or other action, incumbency certificates and/or other
certificates of Responsible Officers of the Borrower and each Guarantor as the
Administrative Agent may require evidencing the identity, authority and
capacity of each Responsible Officer thereof authorized to act as a Responsible
Officer in connection with this Agreement and the other Loan Documents to which
the Borrower and each Guarantor are a party;

(iv)          such documents and
certifications as the Administrative Agent may reasonably require to evidence
that the Borrower and each Guarantor are duly organized or formed, and that the
Borrower and each Guarantor are validly existing, in good standing and
qualified to engage in business in its state of organization and in each
jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification, except to the extent that
failure to do so could not reasonably be expected to have a Material Adverse Effect;

(v)           a favorable opinion
of Gibson Dunn & Crutcher LLP, counsel to the Borrower, addressed to the
Administrative Agent and each Lender, as to the matters set forth in Exhibit
I and such other matters concerning the Borrower and each Guarantor and the
Loan Documents as the Required Lenders may reasonably request;

(vi)          a certificate of a
Responsible Officer of the Borrower and each Guarantor either (A) attaching
copies of all consents, licenses and approvals required in connection with the
execution, delivery and performance by the Borrower and each Guarantor and the
validity against the Borrower and each Guarantor of the Loan Documents to which
it is a party, and such consents, licenses and approvals shall be in full force
and effect, or (B) stating that no such consents, licenses or approvals
are so required; 

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(vii)         a certificate signed
by a Responsible Officer of the Borrower certifying (A) that the
conditions specified in Sections 4.02(a) and (b) have been
satisfied (other than as to the Acquired Business); (B) that there has
been no event or circumstance since December 31, 2005 that has had or
could be reasonably expected to have, either individually or in the aggregate,
a Closing Date Material Adverse Effect; and (C) the current Debt Ratings;

(viii)        a certificate signed
by a Responsible Officer of the Borrower certifying that the representations
and warranties relating to the Acquired Business set forth in Sections 5.01,
5.02, 5.04, 5.14 and 5.18 (the “Specified
Representations”) are true and correct on and as of the Closing Date,
except to the extent that such representations and warranties specifically
refer to an earlier date, in which case they are true and correct as of such
earlier date;

(ix)           a duly completed
Compliance Certificate signed by a Responsible Officer of the Borrower
demonstrating compliance with Section 7.10 on June 30, 2006, after
giving effect to the Transactions;

(x)            evidence that the
Existing Credit Agreement and the Existing CNL Credit Agreement have been or concurrently
with the Closing Date are being terminated and all Liens securing obligations
under the Existing Credit Agreement and the Existing CNL Credit Agreement, if
any, have been or concurrently with the Closing Date are being released; and

(xi)           such other
assurances, certificates, documents, consents or opinions as the Administrative
Agent, the L/C Issuer, the Swing Line Lender or the Required Lenders reasonably
may require.

(b)           Any fees required to be paid on or
before the Closing Date shall have been paid.

(c)           Unless waived by the Administrative
Agent, the Borrower shall have paid all fees, charges and disbursements of
counsel to the Administrative Agent to the extent invoiced prior to or on the
Closing Date, plus such additional amounts of such fees, charges and disbursements
as shall constitute its reasonable estimate of such fees, charges and
disbursements incurred or to be incurred by it through the closing proceedings
(provided that such estimate shall not thereafter preclude a final
settling of accounts between the Borrower and the Administrative Agent).

(d)           The Acquisitions and the other
Transactions shall be consummated in accordance with the Acquisition Agreements
and the other documentation related to the Acquisitions and each of the other Transactions,
each as in effect on the date hereof (collectively, the “Acquisition
Documents”) without waiver or amendment thereof that is materially adverse
to the Lenders unless consented to by Bank of America, N.A., and UBS Loan
Finance LLC.

(e)           The Borrower shall have received
gross proceeds of not less than $705,729,000 from borrowings under the Bridge
Loan Agreement (or other funding on terms and conditions reasonably
satisfactory to Bank of America, N.A., and UBS Loan Finance LLC.), and the
documentation and terms of the Bridge Loan Agreement shall be reasonably
satisfactory in form and substance to the Lenders.

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(f)            There shall not have occurred any
Closing Date Material Adverse Effect since December 31, 2005.

(g)           The Borrower and each of the Guarantors
shall have provided the documentation and other information to the Lenders that
is required by regulatory authorities under applicable “know your customer” and
anti-money-laundering rules and regulations, including, without limitation, the
Patriot Act.

Without
limiting the generality of the provisions of Section 9.04, for purposes
of determining compliance with the conditions specified in this Section 4.01,
each Lender that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, (i) this Agreement and each
other document to which it is a party or which it has reviewed or (ii) any
other matter required thereunder to be consented to or approved by or
acceptable or satisfactory to a Lender unless the Administrative Agent shall
have received notice from such Lender prior to the proposed Closing Date
specifying its objection thereto.

4.02        Conditions to All Credit Extensions.

The
obligation of each Lender to honor any Request for Credit Extension (other than
a Committed Loan Notice requesting only a conversion of Committed Loans to the
other Type, or a continuation of Eurodollar Rate Loans) is subject to the following
conditions precedent:

(a)           The representations and warranties of
the Borrower contained in Article V or any other Loan Document, or which
are contained in any document furnished at any time under or in connection
herewith or therewith, shall be true and correct on and as of the date of such
Credit Extension, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and correct
as of such earlier date, and except that for purposes of this Section 4.02,
the representations and warranties contained in subsections (a) and (b) of Section
5.05 shall be deemed to refer to the most recent statements furnished
pursuant to clauses (a) and (b), respectively, of Section 6.01.

(b)           No Default shall exist, or would
result from such proposed Credit Extension or from the application of the proceeds
thereof.

(c)           The Administrative Agent and, if
applicable, the L/C Issuer or the Swing Line Lender shall have received a
Request for Credit Extension in accordance with the requirements hereof.

Each
Request for Credit Extension (other than a Committed Loan Notice requesting
only a conversion of Committed Loans to the other Type or a continuation of
Eurodollar Rate Loans) submitted by the Borrower shall be deemed to be a
representation and warranty that the conditions specified in Sections
4.02(a) and (b) have been satisfied on and as of the date of the
applicable Credit Extension.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

The
Borrower represents and warrants to the Administrative Agent and the Lenders
that:

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5.01        Existence, Qualification and Power;
Compliance with Laws.

The
Borrower and each of its Subsidiaries (a) is duly organized or formed, validly
existing and in good standing under the Laws of the jurisdiction of its
incorporation or organization, (b) has all requisite power and authority and
all requisite governmental licenses, authorizations, consents and approvals to
(i) own its assets and carry on its business and (ii) execute, deliver and
perform its obligations under the Loan Documents to which it is a party, (c) is
duly qualified and is licensed and in good standing under the Laws of each
jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification or license, and (d) is in
compliance with all Laws; except in each case referred to in clause (b)(i), (c)
or (d), to the extent that failure to do so could not reasonably be expected to
have a Material Adverse Effect.

5.02        Authorization; No Contravention.

The
execution, delivery and performance by the applicable Loan Parties of each Loan
Document to which the applicable Loan Parties are parties, have been duly
authorized by all necessary corporate or other organizational action, and do
not and will not (a) contravene the terms of any of the applicable Loan Parties’
Organization Documents; (b) conflict with or result in any breach or
contravention of, or the creation of any Lien under, or require any payment to
be made under (i) any Contractual Obligation to which the applicable Loan
Parties are parties or affecting the applicable Loan Parties or the properties
of the Borrower or any of its Subsidiaries or (ii) any order, injunction, writ
or decree of any Governmental Authority or any arbitral award to which the
applicable Loan Parties or their property is subject; or (c) violate any
Law.  The applicable Loan Parties and
each Subsidiary thereof are in compliance with all Contractual Obligations referred
to in clause (b)(i), except to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect.

5.03        Governmental Authorization; Other
Consents.

No
approval, consent, exemption, authorization, or other action by, or notice to,
or filing with, any Governmental Authority or any other Person is necessary or
required in connection with the execution, delivery or performance by, or
enforcement against, the Loan Parties of this Agreement or any other Loan
Document.

5.04        Binding Effect.

This
Agreement has been, and each other Loan Document, when delivered hereunder,
will have been, duly executed and delivered by the Loan Parties.  This Agreement constitutes, and each other
Loan Document when so delivered will constitute, a legal, valid and binding
obligation of the Loan Parties, enforceable against the Loan Parties in
accordance with its terms.

5.05        Financial Statements; No Material
Adverse Effect.

(a)           The Audited Financial Statements (i)
were prepared in accordance with GAAP consistently applied throughout the
period covered thereby, except as otherwise expressly noted therein; (ii)
fairly present the financial condition of the Borrower and its Subsidiaries as
of the date thereof and their results of operations for the period covered
thereby in accordance with GAAP consistently applied throughout the period
covered thereby, except as otherwise expressly noted therein; and (iii) show
all material indebtedness and other liabilities, direct or contingent, of the
Borrower and its Subsidiaries as of the date thereof, including liabilities for
taxes, material commitments and Indebtedness.

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(b)           The unaudited consolidated balance
sheet of the Borrower and its Subsidiaries dated June 30, 2006, and the related
consolidated statements of income or operations, shareholders’ equity and cash
flows for the fiscal quarter ended on that date (i) were prepared in accordance
with GAAP consistently applied throughout the period covered thereby, except as
otherwise expressly noted therein, (ii) fairly present the financial condition
of the Borrower and its Subsidiaries as of the date thereof and their results
of operations for the period covered thereby, subject, in the case of clauses
(i) and (ii), to the absence of footnotes and to normal year-end audit
adjustments and (iii) show all material indebtedness and other liabilities,
direct or contingent, of the Borrower and its Subsidiaries as of the date
thereof, including liabilities for taxes, material commitments and
Indebtedness.

(c)           Since the date of the Audited
Financial Statements, there has been no event or circumstance, either
individually or in the aggregate, that has had or could reasonably be expected
to have a Material Adverse Effect.

(d)           The financial information of the
Borrower and its Subsidiaries delivered pursuant to Section 6.01 (i)
were prepared in accordance with GAAP consistently applied throughout the
period covered thereby, except as otherwise expressly noted therein; (ii)
fairly present the financial condition of the Borrower and its Subsidiaries as
of the date thereof and their results of operations for the period covered
thereby in accordance with GAAP consistently applied throughout the period
covered thereby, except as otherwise expressly noted therein; and (iii) show
all material indebtedness and other liabilities, direct or contingent, of the
Borrower and its Subsidiaries as of the date thereof, including liabilities for
taxes, material commitments and Indebtedness.

(e)           To the best knowledge of the
Borrower, no Internal Control Event exists or has occurred since the date of
the Audited Financial Statements that has resulted in or could reasonably be
expected to result in a misstatement in any material respect, in any financial
information heretofore delivered to the Administrative Agent or the Lenders, of
(i) covenant compliance calculations provided hereunder or (ii) the
assets, liabilities, financial condition or results of operations of the
Borrower and its Subsidiaries on a consolidated basis.

5.06        Litigation.

There
are no actions, suits, proceedings, claims, investigations or disputes pending
or, to the knowledge of the Borrower after due and diligent investigation,
threatened or contemplated, at law, in equity, in arbitration or before any
Governmental Authority, by or against the Borrower or any of its Subsidiaries
or against any of their properties or revenues that (a) purport to affect or
pertain to this Agreement or any other Loan Document, or any of the
transactions contemplated hereby, or (b) either individually or in the
aggregate, if determined adversely, could reasonably be expected to have a Material
Adverse Effect.

5.07        No Default.

Neither
the Borrower nor any Subsidiary is in default under or with respect to any
Contractual Obligation that could, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.  No Default has occurred and is continuing or
would result from the consummation of the transactions contemplated by this
Agreement or any other Loan Document.

5.08        Ownership of Property; Liens; Leases.

(a)           Each
of the Borrower and each Subsidiary has good record and marketable title in fee
simple to, or valid leasehold interests in, all real property necessary or used
in the ordinary conduct of its business, except for such defects in title as
could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

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(b)           The property of the Borrower and its
Subsidiaries is subject to no Liens, other than Liens permitted by Section
7.01.

(c)           Except as could not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect, (i)
there are no renewal or extension options applicable to any lease to which the
Borrower or any Subsidiary is a party; (ii) to the Borrower’s knowledge, no
condition exists which, with the giving of notice or the passage of time, or
both, would permit any lessee to cancel its obligations under any lease to
which the Borrower or any Subsidiary is a party; (iii) the Borrower has received
no notice that any lessee intends to cease operations at any leased property
prior to the expiration of the term of the applicable lease (other than temporarily
due to casualty, remodeling, renovation or any similar causes) and (iv) to the
Borrower’s knowledge, none of the lessees or their sub-lessees, if any, under
any of the leases to which the Borrower or any Subsidiary is a party is the
subject of any bankruptcy, reorganization, insolvency or similar proceeding.

5.09        Environmental Compliance.

The
Borrower and its Subsidiaries conduct in the ordinary course of business a
review of the effect of existing Environmental Laws and claims alleging
potential liability or responsibility for violation of any Environmental Law on
their respective businesses, operations and properties, and as a result thereof
the Borrower has reasonably concluded that such Environmental Laws and claims
could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

5.10        Insurance.

The
properties of the Borrower and its Subsidiaries are insured with financially
sound and reputable insurance companies not Affiliates of the Borrower, in such
amounts, with such deductibles and covering such risks as are customarily
carried by companies engaged in similar businesses and owning similar
properties in localities where the Borrower or the applicable Subsidiary operates.

5.11        Taxes.

The
Borrower and its Subsidiaries have filed all Federal, state and other material
tax returns and reports required to be filed, and have paid all Federal, state
and other material taxes, assessments, fees and other governmental charges
levied or imposed upon them or their properties, income or assets otherwise due
and payable, except those which are being contested in good faith by
appropriate proceedings diligently conducted and for which adequate reserves
have been provided in accordance with GAAP. 
There is no proposed tax assessment against the Borrower or any
Subsidiary that would, if made, have a Material Adverse Effect.  Neither the Borrower nor any Subsidiary
thereof is party to any tax sharing agreement.

5.12        ERISA Compliance.

(a)           Each Plan is in compliance in all
material respects with the applicable provisions of ERISA, the Code and other
Federal or state Laws.  Each Plan that is
intended to qualify under Section 401(a) of the Code has received a favorable
determination letter from the IRS or an application for such a letter is
currently being processed by the IRS with respect thereto and, to the best
knowledge of the Borrower, nothing has occurred which would prevent, or cause
the loss of, such qualification.  The
Borrower and each ERISA Affiliate have made all required contributions to each
Plan subject to Section 412 of the Code, and no application for a funding
waiver or an extension of any amortization period pursuant to Section 412 of
the Code has been made with respect to any Plan.

 56
 

 

(b)           There are no pending or, to the best
knowledge of the Borrower, threatened claims, actions or lawsuits, or action by
any Governmental Authority, with respect to any Plan that could reasonably be
expected to have a Material Adverse Effect. 
There has been no prohibited transaction or violation of the fiduciary
responsibility rules with respect to any Plan that has resulted or could
reasonably be expected to result in a Material Adverse Effect.

(c)           (i) No ERISA Event has occurred or is
reasonably expected to occur; (ii) no Pension Plan has any Unfunded Pension
Liability; (iii) neither the Borrower nor any ERISA Affiliate has incurred, or
reasonably expects to incur, any liability under Title IV of ERISA with respect
to any Pension Plan (other than premiums due and not delinquent under Section
4007 of ERISA); (iv) neither the Borrower nor any ERISA Affiliate has incurred,
or reasonably expects to incur, any liability (and no event has occurred which,
with the giving of notice under Section 4219 of ERISA, would result in such
liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer
Plan; and (v) neither the Borrower nor any ERISA Affiliate has engaged in a
transaction that could be subject to Sections 4069 or 4212(c) of ERISA.

5.13        Subsidiaries; Equity Interests;
Subsidiary Guarantors.

(a)           As of the Closing Date, the Borrower
has no Subsidiaries other than those specifically disclosed in Part (a) of Schedule
5.13, and the outstanding Equity Interests in such Subsidiaries have been
validly issued, are fully paid and nonassessable and are owned by the Borrower
or one of its Subsidiaries in the amounts specified on Part (a) of Schedule
5.13 free and clear of all Liens. 
Part (a) of Schedule 5.13 discloses, for each of the Borrower’s
direct and indirect Subsidiaries existing as of the Closing Date:

(i)            the
percentage of the outstanding Equity Interests in the Subsidiary that is
beneficially owned by the Borrower, including Equity Interests acquired as a
result of the Acquisitions;

(ii)           the
Total Asset Value of the Subsidiary;

(iii)          the
amount of Indebtedness of the Subsidiary;

(iv)          the
amount of Indebtedness of the Subsidiary that is secured by a Lien (other than
Permitted Liens);

(v)           a
notation whether or not the Subsidiary is a Guarantor and, if not, a description
of the basis on which the Subsidiary is not required to be a Guarantor pursuant
to Section 6.13; and

(vi)          the
amount of revenue of the Subsidiary for the six month period ended June 30,
2006.

(b)           The Borrower has no equity
investments in any other Person other than those specifically disclosed in Part
(b) of Schedule 5.13 and set forth as part of Schedule 5.13(b) is
an identification of those entities that are Material Joint Ventures.

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(c)           As of the Closing Date, the Borrower
has no Subsidiaries that would be required to become Subsidiary Guarantors
pursuant to Section 6.13(a) other than those Subsidiaries that are
Subsidiary Guarantors.

5.14        Margin Regulations; Investment
Company Act; REIT Status.

(a)           The Borrower is not engaged and will
not engage, principally or as one of its important activities, in the business
of purchasing or carrying margin stock (within the meaning of Regulation U
issued by the FRB), or extending credit for the purpose of purchasing or carrying
margin stock.

(b)           None of the Borrower, any Person
Controlling the Borrower, or any Subsidiary is or is required to be registered
as an “investment company” under the Investment Company Act of 1940.

(c)           The Borrower meets all requirements
to qualify as a REIT.  No Subsidiary is
required to qualify as a REIT on or after the Closing Date.

5.15        Disclosure.

The
Borrower has disclosed to the Administrative Agent and the Lenders all
agreements, instruments and corporate or other restrictions to which it or any
of its Subsidiaries is subject, and all other matters known to it, that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect.  No report,
financial statement, certificate or other information furnished (whether in
writing or orally) by or on behalf of the Borrower or any of its Subsidiaries
to the Administrative Agent or any Lender in connection with the transactions
contemplated hereby and the negotiation of this Agreement or delivered
hereunder or under any other Loan Document (in each case, as modified or supplemented
by other information so furnished) contains any material misstatement of fact
or omits to state any material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading; provided
that, with respect to projected financial information, the Borrower represents
only that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time.

5.16        Compliance with Laws.

Each
of the Borrower and each Subsidiary is in compliance in all material respects
with the requirements of all Laws and all orders, writs, injunctions and
decrees applicable to it or to its properties, except in such instances in
which (a) such requirement of Law or order, writ, injunction or decree is being
contested in good faith by appropriate proceedings diligently conducted or (b)
the failure to comply therewith, either individually or in the aggregate, could
not reasonably be expected to have a Material Adverse Effect.

5.17        Intellectual Property; Licenses, Etc.

The
Borrower and its Subsidiaries own, or possess the right to use, all of the
trademarks, service marks, trade names, copyrights, patents, patent rights,
franchises, licenses and other intellectual property rights (collectively, “IP
Rights”) that are reasonably necessary for the operation of their
respective businesses, without conflict with the rights of any other Person.  To the best knowledge of the Borrower, no
slogan or other advertising device, product, process, method, substance, part
or other material now employed, or now contemplated to be employed, by the
Borrower or any Subsidiary infringes upon any rights held by any other
Person.  No claim or litigation regarding
any of the foregoing is pending or, to the best knowledge of the Borrower,
threatened, which, either individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

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5.18        Use of Proceeds.

The
proceeds of the Loans hereunder will be used solely for the purposes specified
in Section 6.11.  No proceeds of
the Loans hereunder will be used for the acquisition of another Person unless
the board of directors (or other comparable governing body) or stockholders (or
other equity owners), as appropriate, of such Person has approved such
acquisition.

5.19        Taxpayer Identification Number.

The
Borrower’s true and correct U.S. taxpayer identification number is set forth on
Schedule 10.02.

5.20        Acquisition Documents.

The
Lenders have been furnished true and complete copies of each Acquisition Document
to the extent executed and delivered on or prior to the Closing Date.

ARTICLE VI

AFFIRMATIVE COVENANTS

So
long as any Lender shall have any Commitment hereunder, any Loan or other
Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of
Credit shall remain outstanding, the Borrower shall, and shall (except in the
case of the covenants set forth in Sections 6.01, 6.02, and 6.03)
cause each Subsidiary to:

6.01        Financial Statements.

Deliver
to the Administrative Agent and each Lender, in form and detail satisfactory to
the Administrative Agent and the Required Lenders:

(a)           as soon as available, but in any
event within five days of the date the Borrower is required to file its Form
10-K with the SEC (without giving effect to any extension of such due date,
whether obtained by filing the notification permitted by Rule 12b-25 or any
successor provision thereto or otherwise) (commencing with the fiscal year
ended December 31, 2006), a consolidated balance sheet of the Borrower and
its Subsidiaries as at the end of such fiscal year, and the related
consolidated statements of income or operations, shareholders’ equity and cash
flows for such fiscal year, setting forth in each case in comparative form the
figures for the previous fiscal year, all in reasonable detail and prepared in
accordance with GAAP, such consolidated statements to be audited and
accompanied by (i) a report and opinion of a Registered Public Accounting
Firm of nationally recognized standing reasonably acceptable to the Required
Lenders, which report and opinion shall be prepared in accordance with
generally accepted auditing standards and applicable Securities Laws and shall
not be subject to any “going concern” or like qualification or exception or any
qualification or exception as to the scope of such audit or with respect to the
absence of any material misstatement and (ii) an opinion of such
Registered Public Accounting Firm independently assessing the Borrower’s
internal controls over financial reporting in accordance with Item 308 of SEC
Regulation S-K, PCAOB Auditing Standard No. 2, and Section 404 of the
Sarbanes-Oxley Act of 2002; and

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(b)           as soon as available, but in any
event within five days of the date the Borrower is required to file its Form 10-Q
with the SEC (without giving effect to any extension of such due date, whether
obtained by filing the notification permitted by Rule 12b-25 or any successor
provision thereto or otherwise) (commencing with the fiscal quarter ended
September 30, 2006), a consolidated balance sheet of the Borrower as at
the end of such fiscal quarter, and the related consolidated statements of
income or operations for such fiscal quarter and for the portion of the
Borrower’s fiscal year then ended, and a statement of cash flow for the portion
of the Borrower’s fiscal year then ended setting forth in each case in
comparative form the figures for the corresponding fiscal quarter of the
previous fiscal year and the corresponding portion of the previous fiscal year,
all in reasonable detail, such consolidated statements to be certified by a
Responsible Officer of the Borrower as fairly presenting the financial condition,
results of operations, shareholders’ equity and cash flows of the Borrower and
its Subsidiaries in accordance with GAAP, subject only to normal year-end audit
adjustments and the absence of footnotes; and

(c)           as soon as available, but in no event
later that 60 days following the end of each fiscal year of the Borrower, an
annual forecast for the then-current fiscal year, prepared in a manner and in
the form of the forecast provided on the Closing Date or in such other form as
is reasonably acceptable to the Administrative Agent and the Required Lenders.

As
to any information contained in materials furnished pursuant to Section
6.02(d), the Borrower shall not be separately required to furnish such
information under clause (a) or (b) above, but the foregoing shall not be in
derogation of the obligation of the Borrower to furnish the information and
materials described in clauses (a) and (b) above at the times specified
therein.

6.02        Certificates; Other Information.

Deliver
to the Administrative Agent and each Lender, in form and detail satisfactory to
the Administrative Agent and the Required Lenders:

(a)           concurrently
with the delivery of the financial statements referred to in Sections
6.01(a) and (b) (commencing with the delivery of the financial
statements for the fiscal quarter ended September 30, 2006), a duly
completed Compliance Certificate signed by a Responsible Officer of the
Borrower;

(b)           promptly
after any request by the Administrative Agent or any Lender, copies of any
management letters submitted to the board of directors (or the audit committee
of the board of directors) of the Borrower by independent accountants in
connection with an audit of the accounts of the Borrower;

(c)           concurrently
with the delivery of the financial statements referred to in Section 6.01(a),
a certificate of its independent certified public accountants certifying such
financial statements and stating that in making the examination necessary
therefor no knowledge was obtained of any Default or, if any such Default shall
exist, stating the nature and status of such event;

(d)           promptly
after the same are available, copies of each annual report, proxy or financial
statement or other report or communication sent to the stockholders of the
Borrower, and copies of all annual, regular, periodic and special reports and
registration statements which the Borrower may file or be required to file with
the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934, and
not otherwise required to be delivered to the Administrative Agent pursuant
hereto;

 60
 

 

(e)           promptly,
and in any event within five Business Days after receipt thereof by the Borrower
or any Subsidiary thereof, copies of each notice or other correspondence received
from the SEC (or comparable agency in any applicable non-U.S. jurisdiction)
concerning any investigation by such agency regarding financial or other
operational results of the Borrower or any Subsidiary thereof; and

(f)            promptly,
such additional information regarding the business, financial or corporate affairs
of the Borrower or any Subsidiary, or compliance with the terms of the Loan
Documents, as the Administrative Agent or any Lender may from time to time
reasonably request.

Documents
required to be delivered pursuant to Section 6.01(a) or (b) or Section
6.02(d) (to the extent any such documents are included in materials
otherwise filed with the SEC) may be delivered electronically and if so
delivered, shall be deemed to have been delivered on the date (i) on which the
Borrower posts such documents, or provides a link thereto on the Borrower’s
website on the Internet at the website address listed on Schedule 10.02;
or (ii) on which such documents are posted on the Borrower’s behalf on an
Internet or intranet website, if any, to which each Lender and the Administrative
Agent have access (whether a commercial, third-party website or whether
sponsored by the Administrative Agent); provided that:  (i) the Borrower shall deliver paper copies
of such documents to the Administrative Agent or any Lender that requests the
Borrower to deliver such paper copies until a written request to cease delivering
paper copies is given by the Administrative Agent or such Lender and (ii) the
Borrower shall notify the Administrative Agent and each Lender (by telecopier
or electronic mail) of the posting of any such documents and provide to the
Administrative Agent by electronic mail electronic versions (i.e., soft
copies) of such documents. 
Notwithstanding anything contained herein, in every instance the
Borrower shall be required to provide paper copies of the Compliance
Certificates required by Section 6.02(a) to the Administrative
Agent.  Except for such Compliance
Certificates, the Administrative Agent shall have no obligation to request the
delivery or to maintain copies of the documents referred to above, and in any
event shall have no responsibility to monitor compliance by the Borrower with
any such request for delivery, and each Lender shall be solely responsible for
requesting delivery to it or maintaining its copies of such documents.

The
Borrower hereby acknowledges that (a) the Administrative Agent and/or the
Arrangers will make available to the Lenders and the L/C Issuer materials
and/or information provided by or on behalf of the Borrower hereunder
(collectively, “Borrower Materials”) by posting the Borrower Materials
on IntraLinks or another similar electronic system (the “Platform”) and
(b) certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do
not wish to receive material non-public information with respect to the
Borrower or its securities) (each, a “Public Lender”).  The Borrower hereby agrees that so long as
the Borrower is the issuer of any outstanding debt or equity securities that
are registered or issued pursuant to a private offering or is actively
contemplating issuing any such securities (w) all Borrower Materials that are
to be made available to Public Lenders shall be clearly and conspicuously
marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall
appear prominently on the first page thereof; (x) by marking Borrower
Materials “PUBLIC,” the Borrower shall be deemed to have authorized the Administrative
Agent, the Arrangers, the L/C Issuer and the Lenders to treat such Borrower
Materials as not containing any material non-public information with respect to
the Borrower or its securities for purposes of United States Federal and state
securities laws (provided, however, that to the extent such
Borrower Materials constitute Information, they shall be treated as set forth
in Section 10.07); (y) all Borrower Materials marked “PUBLIC” are
permitted to be made available through a portion of the Platform designated “Public
Investor;” and (z) the Administrative Agent and the Arrangers shall be
entitled to treat any Borrower Materials that are not marked “PUBLIC” as being
suitable only for posting on a portion of the Platform not designated “Public
Investor.”  Notwithstanding the
foregoing, the Borrower shall be under no obligation to mark any Borrower
Materials “PUBLIC.”

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6.03        Notices.

Promptly
notify the Administrative Agent and each Lender of:

(a)           the
occurrence of any Default;

(b)           any
matter that has resulted or could reasonably be expected to result in a
Material Adverse Effect, including (i) breach or non-performance of, or any
default under, a Contractual Obligation of the Borrower or any Subsidiary; (ii)
any dispute, litigation, investigation, proceeding or suspension between the
Borrower or any Subsidiary and any Governmental Authority; or (iii) the commencement
of, or any material development in, any litigation or proceeding affecting the
Borrower or any Subsidiary, including pursuant to any applicable Environmental
Laws;

(c)           the
occurrence of any ERISA Event;

(d)           any
material change in accounting policies or financial reporting practices by the
Borrower or any Subsidiary;

(e)           any
announcement by Moody’s or S&P of any change or possible change in a Debt
Rating; and

(f)            of
the determination by the Registered Public Accounting Firm providing the
opinion required under Section 6.01(a)(ii) (in connection with its
preparation of such  opinion) or the
Borrower’s determination at any time of the occurrence or existence of any
Internal Control Event.

Each
notice pursuant to this Section shall be accompanied by a statement of a
Responsible Officer of the Borrower setting forth details of the occurrence
referred to therein and stating what action the Borrower has taken and proposes
to take with respect thereto.  Each
notice pursuant to Section 6.03(a) shall describe with particularity any
and all provisions of this Agreement and any other Loan Document that have been
breached.

6.04        Payment of Obligations.

Pay
and discharge as the same shall become due and payable, all its obligations and
liabilities, including (a) all tax liabilities, assessments and governmental
charges or levies upon it or its properties or assets, unless the same are
being contested in good faith by appropriate proceedings diligently conducted
and adequate reserves in accordance with GAAP are being maintained by the
Borrower or such Subsidiary; (b) all lawful claims which, if unpaid, would by
law become a Lien upon its property; and (c) all Indebtedness, as and when due
and payable, but subject to any subordination provisions contained in any
instrument or agreement evidencing such Indebtedness, in each case except where
the failure to do so could not reasonably be expected to have a Material
Adverse Effect.

6.05        Preservation of Existence, Etc.

(a) Preserve,
renew and maintain in full force and effect its legal existence and good
standing under the Laws of the jurisdiction of its organization except in a
transaction not prohibited by Section 7.04 or 7.05, or to the
extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect; (b) take all reasonable action to maintain all rights,
privileges, permits, licenses and franchises necessary or desirable in the
normal conduct of its business, except to the extent that failure to 

 62
 

 

do
so could not reasonably be expected to have a Material Adverse Effect; and (c)
preserve or renew all of its registered patents, trademarks, trade names and
service marks, the non-preservation of which could reasonably be expected to
have a Material Adverse Effect.  Without
limiting the generality of the foregoing, the Borrower will do all things
necessary to maintain its status as a REIT.

6.06        Maintenance of Properties.

(a) Maintain,
preserve and protect, or make contractual or other provisions to cause to maintain,
preserve or protect, all of its properties and equipment necessary in the
operation of its business in good working order and condition, ordinary wear
and tear excepted, in each case except where the failure to do so could not
reasonably be expected to have a Material Adverse Effect; (b) make, or make
contractual or other provisions to cause to be made, all necessary repairs
thereto and renewals and replacements thereof except where the failure to do so
could not reasonably be expected to have a Material Adverse Effect; and (c) use
the standard of care typical in the industry in the operation and maintenance
of its facilities.

6.07        Maintenance of Insurance.

(a)           Maintain with financially sound and
reputable insurance companies not Affiliates of the Borrower, insurance with
respect to its properties and business against loss or damage of the kinds customarily
insured against by Persons engaged in the same or similar business, of such
types and in such amounts as are customarily carried under similar
circumstances by such other Persons.

(b)           Use its, and cause the Subsidiaries
to use their, commercially reasonable best efforts to ensure that each lessee
of a property owned in whole or in part, directly or indirectly, by the Borrower
or any Subsidiary, and each mortgagee of a property on which the Borrower or
any Subsidiary holds a mortgage, has, and until the Maturity Date will keep, in
place adequate insurance that names the Borrower or such Subsidiary as a loss
payee.  For purposes of the preceding
sentence “adequate insurance” shall mean insurance, with financially
sound and reputable insurers in such amounts and insuring against such risks as
are customarily maintained by similar businesses.

6.08        Compliance with Laws.

Comply
in all material respects with the requirements of all Laws and all orders,
writs, injunctions and decrees applicable to it or to its business or property,
except in such instances in which (a) such requirement of Law or order,
writ, injunction or decree is being contested in good faith by appropriate
proceedings diligently conducted; or (b) the failure to comply therewith could
not reasonably be expected to have a Material Adverse Effect.

6.09        Books and Records.

Maintain
proper books of record and account, in which full, true and correct entries in
conformity with GAAP consistently applied shall be made of all financial
transactions and matters involving the assets and business of the Borrower or
such Subsidiary, as the case may be.

6.10        Inspection Rights.

Permit
representatives and independent contractors of the Administrative Agent and
each Lender to visit and inspect any of its properties, to examine its
corporate, financial and operating records, and make copies thereof or
abstracts therefrom, and to discuss its affairs, finances and accounts with its
directors, officers, and independent public accountants, all at the expense of
the Borrower and at such reasonable times during normal business hours and as
often as may be reasonably desired, upon 

 63
 

 

reasonable
advance notice to the Borrower; provided, however, that when an
Event of Default exists the Administrative Agent or any Lender (or any of their
respective representatives or independent contractors) may do any of the
foregoing at the expense of the Borrower at any time during normal business
hours and without advance notice.

6.11        Use of Proceeds.

Use
proceeds from the Term Loans and Committed Revolving Loans to finance, in part,
the CNL Merger and the Advisor Merger, to pay transaction fees, commissions and
expenses in connection therewith and to repay the amounts owed under the
Existing Credit Agreement and the Existing CNL Credit Agreement and use the
remainder of the Committed Revolving Loans for working capital and general
corporate purposes.

6.12        REIT Status.

The
Borrower will, and will cause each of its Subsidiaries to, operate its business
at all times so as to satisfy all requirements necessary to qualify and
maintain the Borrower’s  qualification as
a real estate investment trust under Sections 856 through 860 of the Code.  The Borrower will maintain adequate records
so as to comply with all record-keeping requirements relating to its
qualification as a real estate investment trust as required by the Code and
applicable regulations of the Department of the Treasury promulgated thereunder
and will properly prepare and timely file with the Internal Revenue Service all
returns and reports required thereby.

6.13        New Subsidiaries; Guarantees.

(a)           Subject to Section 6.13(b),
with respect to any Person that is or becomes a Domestic Subsidiary of the
Borrower as to which the Borrower directly or indirectly owns all of the Equity
Interests, cause such Subsidiary to execute and deliver to the Administrative Agent
a Joinder Agreement, guaranty, guaranty supplement or comparable documentation
to become a Subsidiary Guarantor on or before the deadline for the delivery of
the next Compliance Certificate pursuant to Section 6.02 (and in any event
within 30 days after such person becomes a Subsidiary) and cause such
Subsidiary to deliver such other documentation as the Administrative Agent may
reasonably request in connection with the foregoing, including, without
limitation, certified resolutions and other organizational and authorizing
documents of such Subsidiary, favorable opinions of counsel to such Subsidiary
(which shall cover, among other things, the legality, validity, binding effect
and enforceability of the documentation referred to above), all in form, content
and scope reasonably satisfactory to the Administrative Agent.

(b)           A Subsidiary of the Borrower shall
not be required to become a Subsidiary Guarantor pursuant to Section 6.13(a)
if the Borrower provides evidence reasonably satisfactory to the Administrative
Agent that such Subsidiary is prohibited by the terms of its articles or
certificate of incorporation, operating agreement or other constituent
documents, or by contract, from becoming a Guarantor.  If a Subsidiary ceases to or fails to satisfy
the requirements of this Section 6.13(b), the Borrower shall cause such
Subsidiary to become a Subsidiary Guarantor as required by Section 6.13(a).

6.14        Employee Benefits.

(a) Comply
in all material respects with the applicable provisions of ERISA and the Code
with respect to each Plan, and (b) furnish to the Administrative Agent
(x)  within five days after any Responsible Officer of  the Borrower or any ERISA Affiliate knows or
has reason to know that, any ERISA Event has occurred that, alone or together
with any other ERISA Event could reasonably be expected to result in liability
of the Borrower or any of its ERISA Affiliates in an aggregate amount 

 64
 

 

exceeding
the Threshold Amount or the imposition of a Lien, a statement setting forth
details as to such ERISA Event and the action, if any, that the Borrower or
ERISA Affiliate proposes to take with respect thereto, and (y) upon
request by the Administrative Agent, copies of (i) each Schedule B
(Actuarial Information) to the annual report (Form 5500 Series) filed by the
Borrower or any ERISA Affiliate with the Internal Revenue Service with respect
to each Pension Plan; (ii) the most recent actuarial valuation report for
each Pension Plan; (iii) all notices received by any Company or any ERISA
Affiliate from a Multiemployer Plan sponsor or any governmental agency
concerning an ERISA Event; and (iv) such other documents or governmental
reports or filings relating to any Plan as the Administrative Agent shall
reasonably request.

ARTICLE VII

NEGATIVE COVENANTS

So
long as any Lender shall have any Commitment hereunder, any Loan or other
Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of
Credit shall remain outstanding, the Borrower shall not, nor shall it permit
any Subsidiary to, directly or indirectly:

7.01        Liens.

Create,
incur, assume or suffer to exist any Lien upon any of its property, assets or
revenues, whether now owned or hereafter acquired, other than the following:

(a)           Liens pursuant to any Loan Document;

(b)           Liens securing Indebtedness permitted
under Section 7.03;

(c)           Liens for taxes not yet due or which
are being contested in good faith and by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto are maintained on the
books of the applicable Person in accordance with GAAP;

(d)           carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s or other like Liens arising in the ordinary course
of business which are not overdue for a period of more than 30 days or which
are being contested in good faith and by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto, to the extent required by
GAAP, are maintained on the books of the applicable Person;

(e)           pledges or deposits in the ordinary
course of business in connection with workers’ compensation, unemployment
insurance and other social security legislation, other than any Lien imposed by
ERISA;

(f)            deposits to secure the performance
of bids, trade contracts and leases (other than Indebtedness), statutory
obligations, surety bonds (other than bonds related to judgments or
litigation), performance bonds and other obligations of a like nature incurred
in the ordinary course of business;

(g)           easements, rights-of-way,
restrictions and other similar encumbrances affecting real property which, in
the aggregate, are not substantial in amount, and which do not in any case
materially detract from the value of the property subject thereto or materially
interfere with the ordinary conduct of the business of the applicable Person;
and

 65
 

 

(h)           Liens securing judgments for the
payment of money not constituting an Event of Default under Section 8.01(h)
or securing appeal or other surety bonds related to such judgments.

7.02        Investments.

(a)           make or allow Investments in
Development Property to exceed, in the aggregate at any one time outstanding,
15% of Consolidated Total Asset Value.

(b)           make or allow Investments in Joint
Ventures to exceed, in the aggregate at any one time outstanding, 25% of
Consolidated Total Asset Value.  For
purposes of this Section 7.02(b), the Borrower’s aggregate Investment in
Joint Ventures will be valued at (i) the aggregate amount of cash and cash
equivalents and the book value of other property contributed by the Borrower to
the Joint Ventures minus (ii) the aggregate amount of distributions received by
the Borrower from the Joint Ventures that would be classified as a return of
capital (as opposed to a return on investment).

7.03        Indebtedness.

(a)           Create, incur, assume or suffer to
exist any Indebtedness of the Borrower or any Subsidiary Guarantor, except:

(i)            Indebtedness
under the Loan Documents; and

(ii)           other
Indebtedness; provided that after giving effect thereto (including any
Liens associated therewith) the Borrower and its Subsidiaries are in compliance
with all of the terms of this Agreement, including, but not limited to, the
financial covenants set forth in Section 7.10.

(b)           Create, incur, assume or suffer to
exist any Secured Debt or any Indebtedness of any Subsidiary of the Borrower
that is not a Subsidiary Guarantor (other than Indebtedness owing to the
Borrower or another Subsidiary of the Borrower) that, when combined with (i)
outstanding Secured Debt and (ii) outstanding Indebtedness of other
Subsidiaries that are not Subsidiary Guarantors exceeds 30% of Consolidated
Total Asset Value.

7.04        Fundamental Changes.

Merge,
dissolve, liquidate, consolidate with or into another Person, except that, so
long as no Default exists or would result therefrom, any Subsidiary may merge
with (a) the Borrower, provided that the Borrower shall be the
continuing or surviving Person, or (b) any one or more other Subsidiaries, provided
that when any wholly-owned Subsidiary is merging with another Subsidiary, the
wholly-owned Subsidiary shall be the continuing or surviving Person.

7.05        Dispositions.

Make
any Disposition of all or a substantial part of the assets of the Borrower and
its Subsidiaries.

7.06        Restricted Payments.

Declare
or make, directly or indirectly, any Restricted Payment, or incur any
obligation (contingent or otherwise) to do so, except that, so long as no
Default shall have occurred and be continuing or would result therefrom, the
Borrower and each Subsidiary may purchase, redeem or otherwise acquire Equity
Interests issued by it in an amount not to exceed, in the aggregate, fifteen
percent (15%) of Consolidated Tangible Net Worth during the term of this
Agreement.

 66
 

 

7.07        Change in Nature of Business.

Engage
in any material line of business substantially different from those lines of
business conducted by the Borrower and its Subsidiaries on the date hereof or
any business substantially related or incidental thereto.

7.08        Transactions with Affiliates.

Enter
into any transaction of any kind with any Affiliate of the Borrower (other than
a Subsidiary), whether or not in the ordinary course of business, other than on
fair and reasonable terms substantially as favorable to the Borrower or such
Subsidiary as would be obtainable by the Borrower or such Subsidiary at the
time in a comparable arm’s-length transaction with a Person other than an
Affiliate.

7.09        Burdensome Agreements.

Enter
into any Contractual Obligation (other than this Agreement or any other Loan
Document) that limits the ability of (a) any wholly-owned Subsidiary of the
Borrower (other than a Subsidiary that is a bankruptcy remote special purpose
entity) to Guarantee the Indebtedness of the Borrower or (b) the Borrower to
create, incur, assume or suffer to exist Liens on its property; provided,
however, that this clause (b) shall not prohibit any negative pledge
incurred or provided in favor of any holder of Indebtedness permitted under Section
7.03 solely to the extent any such negative pledge (i) relates to the
property financed by or the subject of such Indebtedness or (ii) only requires
the grant of a Lien to secure such Indebtedness if a Lien is granted by the
Borrower to secure other Indebtedness of the Borrower.

7.10        Financial Covenants.

(a)           Leverage Ratio.  Permit the Leverage Ratio to be greater than
the following amounts as of the end of any fiscal quarter ending during the
corresponding period set forth below:

	
  Beginning on the Closing
  Date and on or prior to September 30, 2007

  	
   

  	
  0.70

  	
   

  
	
  Beginning on
  October 1, 2007 and on or prior to March 31, 2008

  	
   

  	
  0.65

  	
   

  
	
  Beginning on
  April 1, 2008

  	
   

  	
  0.60

  	
   

  

 

(b)           Secured Debt Ratio.  Permit the Secured Debt Ratio to be greater
than .30 to 1.0 as of the end of any fiscal quarter.

(c)           Fixed Charge Coverage Ratio.  Permit the Fixed Charge Coverage Ratio to be
less than the following amounts as of the end of any fiscal quarter ending
during the corresponding period set forth below:

	
  Beginning on the Closing
  Date and on or prior to September 30, 2008

  	
   

  	
  1.50

  	
   

  
	
  Beginning on October 1,
  2008

  	
   

  	
  1.75

  	
   

  

 

 67
 

 

(d)           Unsecured Leverage Ratio.  Permit the Unsecured Leverage Ratio to be
greater than the following amounts as of the end of any fiscal quarter ending
during the corresponding period set forth below:

	
  Beginning on the Closing
  Date and on or prior to December 31, 2006

  	
   

  	
  not tested

  	
   

  
	
  Beginning on
  January 1, 2007 and on or prior to June 30, 2007

  	
   

  	
  1.00

  	
   

  
	
  Beginning on
  July 1, 2007 and on or prior to September 30, 2008

  	
   

  	
  0.75

  	
   

  
	
  Beginning on October 1,
  2008

  	
   

  	
  0.65

  	
   

  

 

(e)           Consolidated Tangible Net Worth.  Permit the Consolidated Tangible Net Worth to
be, as of the end of any fiscal quarter, less than (i) 85% of the
Consolidated Tangible Net Worth at the Closing Date (on a pro forma basis to
reflect the Acquisitions) plus (ii) 85% of Net Cash Proceeds from all
Public Equity Issuances subsequent to the Closing Date.

ARTICLE VIII

EVENTS OF DEFAULT AND REMEDIES

8.01        Events of Default.

Any
of the following shall constitute an Event of Default:

(a)           Non-Payment.  The Borrower or any other Loan Party fails to
pay (i) when and as required to be paid herein, any amount of principal of any
Loan or any L/C Obligation, or (ii) within three days after the same becomes
due, any interest on any Loan or on any L/C Obligation, or any fee due hereunder,
or (iii) within five days after the same becomes due, any other amount payable
hereunder or under any other Loan Document; or

(b)           Specific
Covenants.  Any Loan Party or any of
its Subsidiaries fails to perform or observe any term, covenant or agreement
contained in any of Section 6.01, 6.02, 6.03, 6.05,
6.10, 6.11, 6.13 or Article VII; or

(c)           Other
Defaults.  Any Loan Party fails to
perform or observe any other covenant or agreement (not specified in subsection
(a) or (b) above) contained in any Loan Document on its part to be performed or
observed and such failure continues for 30 days; or

(d)           Representations
and Warranties.  Any representation,
warranty, certification or statement of fact made or deemed made by or on
behalf of the Borrower or any other Loan Party herein, in any other Loan Document,
or in any document delivered in connection herewith or therewith shall be
incorrect or misleading when made or deemed made; or

(e)           Cross-Default.  (i) Any Loan Party or any of its Subsidiaries
(A) fails to make any payment when due (whether by scheduled maturity, required
prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness
or Guarantee (other than Indebtedness hereunder and Indebtedness under Swap Contracts)
having an aggregate principal amount (including undrawn committed or available
amounts and including amounts owing to all creditors under any combined or
syndicated credit arrangement) of more than the Threshold Amount, or 

 68
 

 

(B) fails to observe or perform any other agreement or condition
relating to any such Indebtedness or Guarantee or contained in any instrument
or agreement evidencing, securing or relating thereto, or any other event
occurs, the effect of which default or other event is to cause, or to permit
the holder or holders of such Indebtedness or the beneficiary or beneficiaries
of such Guarantee (or a trustee or agent on behalf of such holder or holders or
beneficiary or beneficiaries) to cause, with the giving of notice if required,
such Indebtedness to be demanded or to become due or to be repurchased,
prepaid, defeased or redeemed (automatically or otherwise), or an offer to
repurchase, prepay, defease or redeem such Indebtedness to be made, prior to
its stated maturity, or such Guarantee to become payable or cash collateral in
respect thereof to be demanded; or (ii) there occurs under any Swap Contract an
Early Termination Date (as defined in such Swap Contract) resulting from (A)
any event of default under such Swap Contract as to which the Borrower or any
Subsidiary is the Defaulting Party (as defined in such Swap Contract) or (B)
any Termination Event (as so defined) under such Swap Contract as to which the
Borrower or any Subsidiary is an Affected Party (as so defined) and, in either
event, the Swap Termination Value owed by such Loan Party or such Subsidiary as
a result thereof is greater than the Threshold Amount; or

(f)            Insolvency
Proceedings, Etc.  Any Loan Party or
any of its Subsidiaries institutes or consents to the institution of any
proceeding under any Debtor Relief Law, or makes an assignment for the benefit
of creditors; or applies for or consents to the appointment of any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer
for it or for all or any material part of its property; or any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer
is appointed without the application or consent of such Person and the
appointment continues undischarged or unstayed for 60 calendar days; or any
proceeding under any Debtor Relief Law relating to any such Person or to all or
any material part of its property is instituted without the consent of such
Person and continues undismissed or unstayed for 60 calendar days, or an order
for relief is entered in any such proceeding; or

(g)           Inability
to Pay Debts; Attachment.  (i) Any
Loan Party or any of its Subsidiaries becomes unable or admits in writing its
inability or fails generally to pay its debts as they become due, or (ii) any
writ or warrant of attachment or execution or similar process is issued or levied
against all or any material part of the property of any such Person and is not
released, vacated or fully bonded within 30 days after its issue or levy; or

(h)           Judgments.  There is entered against any Loan Party or
any of its Subsidiaries (i) a final judgment or order for the payment of
money in an aggregate amount exceeding the Threshold Amount (to the extent not
covered by independent third-party insurance as to which the insurer does not
dispute coverage), or (ii) any one or more non-monetary final judgments that
have, or could reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect and, in either case, (A) enforcement
proceedings are commenced by any creditor upon such judgment or order, or (B)
there is a period of 10 consecutive days during which a stay of enforcement of
such judgment, by reason of a pending appeal or otherwise, is not in effect; or

(i)            ERISA.  (i) An ERISA Event occurs with respect to a
Pension Plan or Multiemployer Plan which has resulted or could reasonably be
expected to result in liability of the Borrower under Title IV of ERISA to the
Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess
of the Threshold Amount, or (ii) the Borrower or any ERISA Affiliate fails to
pay when due, after the expiration of any applicable grace period, any
installment payment with respect to its withdrawal liability under Section 4201
of ERISA under a Multiemployer Plan in an aggregate amount in excess of the
Threshold Amount; or

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(j)            Invalidity
of Loan Documents.  Any provision of
any Loan Document, at any time after its execution and delivery and for any
reason other than as expressly permitted hereunder or thereunder or
satisfaction in full of all the Obligations, ceases to be in full force and
effect; or the Borrower or any other Person contests in any manner the validity
or enforceability of any provision of any Loan Document; or any Loan Party
denies that it has any or further liability or obligation under any Loan
Document, or purports to revoke, terminate or rescind any provision of any Loan
Document; or

(k)           Change
of Control.  There occurs any Change
of Control.

8.02        Remedies Upon Event of Default.

If
any Event of Default occurs and is continuing, the Administrative Agent shall,
at the request of, or may, with the consent of, the Required Lenders, take any
or all of the following actions:

(a)           declare
the commitment of each Lender to make Loans and any obligation of the L/C Issuer
to make L/C Credit Extensions to be terminated, whereupon such commitments and
obligation shall be terminated;

(b)           declare
the unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any
other Loan Document to be immediately due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby expressly
waived by the Borrower;

(c)           require
that the Borrower Cash Collateralize the L/C Obligations (in an amount equal to
the then Outstanding Amount thereof); and

(d)           exercise
on behalf of itself and the Lenders all rights and remedies available to it and
the Lenders under the Loan Documents;

provided, however, that upon the occurrence of an
Event of Default pursuant to Sections 8.01(f) or (g) or the
occurrence of an actual or deemed entry of an order for relief with respect to
the Borrower under the Bankruptcy Code of the United States, the obligation of
each Lender to make Loans and any obligation of the L/C Issuer to make L/C
Credit Extensions shall automatically terminate, the unpaid principal amount of
all outstanding Loans and all interest and other amounts as aforesaid shall
automatically become due and payable, and the obligation of the Borrower to
Cash Collateralize the L/C Obligations as aforesaid shall automatically become
effective, in each case without further act of the Administrative Agent or any
Lender.

8.03        Application of Funds.

After
the exercise of remedies provided for in Section 8.02 (or after the
Loans have automatically become immediately due and payable and the L/C
Obligations have automatically been required to be Cash Collateralized as set
forth in the proviso to Section 8.02), any amounts received on account
of the Obligations shall be applied by the Administrative Agent in the following
order:

First, to payment of that portion of the Obligations
constituting fees, indemnities, expenses and other amounts (including fees,
charges and disbursements of counsel to the Administrative Agent and amounts
payable under Article III) payable to the Administrative Agent in its
capacity as such;

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Second, to payment of that portion of the Obligations
constituting fees, indemnities and other amounts (other than principal and
interest) payable to the Lenders and the L/C Issuer (including fees, charges
and disbursements of counsel to the respective Lenders and the L/C Issuer and
amounts payable under Article III), ratably among them in proportion to
the amounts described in this clause Second payable to them;

Third, to payment of that portion of the Obligations
constituting accrued and unpaid interest on the Loans, L/C Borrowings and other
Obligations, ratably among the Lenders and the L/C Issuer in proportion to the
respective amounts described in this clause Third payable to them;

Fourth, to payment of that portion of the Obligations
constituting unpaid principal of the Loans and L/C Borrowings, ratably among
the Lenders and the L/C Issuer in proportion to the respective amounts
described in this clause Fourth held by them;

Fifth, to the Administrative Agent for the account of the
L/C Issuer, to Cash Collateralize that portion of L/C Obligations comprised of
the aggregate undrawn amount of Letters of Credit; and

Last, the balance, if any, after all of the Obligations
have been indefeasibly paid in full, to the Borrower or as otherwise required
by Law.

Amounts
used to Cash Collateralize the aggregate undrawn amount of Letters of Credit
pursuant to clause Fifth above shall be applied to satisfy drawings
under such Letters of Credit as they occur. 
If any amount remains on deposit as Cash Collateral after all Letters of
Credit have either been fully drawn or expired, such remaining amount shall be
applied to the other Obligations, if any, in the order set forth above.

ARTICLE IX

ADMINISTRATIVE AGENT

9.01        Appointment and Authority.

Each
of the Lenders and the L/C Issuer hereby irrevocably appoints Bank of America
to act on its behalf as the Administrative Agent hereunder and under the other
Loan Documents and authorizes the Administrative Agent to take such actions on
its behalf and to exercise such powers as are delegated to the Administrative
Agent by the terms hereof or thereof, together with such actions and powers as
are reasonably incidental thereto.  The
provisions of this Article are solely for the benefit of the Administrative
Agent, the Lenders and the L/C Issuer, and the Borrower shall not have rights
as a third party beneficiary of any of such provisions.

9.02        Rights as a Lender.

The
Person serving as the Administrative Agent hereunder shall have the same rights
and powers in its capacity as a Lender as any other Lender and may exercise the
same as though it were not the Administrative Agent and the term “Lender” or “Lenders”
shall, unless otherwise expressly indicated or unless the context otherwise
requires, include the Person serving as the Administrative Agent hereunder in
its individual capacity.  Such Person and
its Affiliates may accept deposits from, lend money to, act as the financial
advisor or in any other advisory capacity for and generally engage in any kind
of business with the Borrower or any Subsidiary or other Affiliate thereof as
if such Person were not the Administrative Agent hereunder and without any duty
to account therefor to the Lenders.

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9.03        Exculpatory Provisions.

The
Administrative Agent shall not have any duties or obligations except those
expressly set forth herein and in the other Loan Documents.  Without limiting the generality of the
foregoing, the Administrative Agent:

(a)           shall not be subject to any fiduciary
or other implied duties, regardless of whether a Default has occurred and is
continuing;

(b)           shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby or by the other Loan Documents
that the Administrative Agent is required to exercise as directed in writing by
the Required Lenders (or such other number or percentage of the Lenders as
shall be expressly provided for herein or in the other Loan Documents), provided
that the Administrative Agent shall not be required to take any action that, in
its opinion or the opinion of its counsel, may expose the Administrative Agent
to liability or that is contrary to any Loan Document or applicable law; and

(c)           shall not, except as expressly set
forth herein and in the other Loan Documents, have any duty to disclose, and
shall not be liable for the failure to disclose, any information relating to
the Borrower or any of its Affiliates that is communicated to or obtained by
the Person serving as the Administrative Agent or any of its Affiliates in any
capacity.

The
Administrative Agent shall not be liable for any action taken or not taken by
it (i) with the consent or at the request of the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary, or as the
Administrative Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 10.01 and 8.02) or (ii) in
the absence of its own gross negligence or willful misconduct.  The Administrative Agent shall be deemed not
to have knowledge of any Default unless and until notice describing such
Default is given to the Administrative Agent by the Borrower, a Lender or the
L/C Issuer.

The
Administrative Agent shall not be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made in or in
connection with this Agreement or any other Loan Document, (ii) the contents of
any certificate, report or other document delivered hereunder or thereunder or
in connection herewith or therewith, (iii) the performance or observance of any
of the covenants, agreements or other terms or conditions set forth herein or
therein or the occurrence of any Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any
other agreement, instrument or document or (v) the satisfaction of any
condition set forth in Article IV or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the
Administrative Agent.

9.04        Reliance by Administrative Agent.

The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing (including any electronic
message, Internet or intranet website posting or other distribution) believed
by it to be genuine and to have been signed, sent or otherwise authenticated by
the proper Person.  The Administrative
Agent also may rely upon any statement made to it orally or by telephone and
believed by it to have been made by the proper Person, and shall not incur any
liability for relying thereon.  In
determining compliance with any condition hereunder to the making of a Loan, or
the issuance of a Letter of Credit, that by its terms must be fulfilled to the
satisfaction of a Lender or the L/C Issuer, the 

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Administrative
Agent may presume that such condition is satisfactory to such Lender or the L/C
Issuer unless the Administrative Agent shall have received notice to the
contrary from such Lender or the L/C Issuer prior to the making of such Loan or
the issuance of such Letter of Credit. 
The Administrative Agent may consult with legal counsel (who may be
counsel for the Borrower), independent accountants and other experts selected
by it, and shall not be liable for any action taken or not taken by it in
accordance with the advice of any such counsel, accountants or experts.

9.05        Delegation of Duties.

The
Administrative Agent may perform any and all of its duties and exercise its
rights and powers hereunder or under any other Loan Document by or through any
one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such
sub-agent may perform any and all of its duties and exercise its rights and
powers by or through their respective Related Parties.  The exculpatory provisions of this Article
shall apply to any such sub-agent and to the Related Parties of the Administrative
Agent and any such sub-agent, and shall apply to their respective activities in
connection with the syndication of the credit facilities provided for herein as
well as activities as Administrative Agent.

9.06        Resignation of Administrative Agent.

The
Administrative Agent may at any time give notice of its resignation to the
Lenders, the L/C Issuer and the Borrower. 
Upon receipt of any such notice of resignation, the Required Lenders
shall have the right, in consultation with the Borrower, to appoint a
successor, which shall be a bank with an office in the United States, or an
Affiliate of any such bank with an office in the United States.  If no such successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment
within 30 days after the retiring Administrative Agent gives notice of its
resignation, then the retiring Administrative Agent may on behalf of the
Lenders and the L/C Issuer, appoint a successor Administrative Agent meeting
the qualifications set forth above; provided that if the Administrative
Agent shall notify the Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become
effective in accordance with such notice and (1) the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder and under
the other Loan Documents and (2) all payments, communications and
determinations provided to be made by, to or through the Administrative Agent
shall instead be made by or to each Lender and the L/C Issuer directly, until
such time as the Required Lenders appoint a successor Administrative Agent as
provided for above in this Section.  Upon
the acceptance of a successor’s appointment as Administrative Agent hereunder,
such successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring (or retired) Administrative Agent, and
the retiring Administrative Agent shall be discharged from all of its duties
and obligations hereunder or under the other Loan Documents (if not already discharged
therefrom as provided above in this Section). 
The fees payable by the Borrower to a successor Administrative Agent
shall be the same as those payable to its predecessor unless otherwise agreed between
the Borrower and such successor.  After
the retiring Administrative Agent’s resignation hereunder and under the other
Loan Documents, the provisions of this Article and Section 10.04 shall
continue in effect for the benefit of such retiring Administrative Agent, its
sub-agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while the retiring Administrative Agent
was acting as Administrative Agent.

Any
resignation by Bank of America as Administrative Agent pursuant to this Section
shall also constitute its resignation as L/C Issuer and Swing Line Lender.  Upon the acceptance of a successor’s appointment
as Administrative Agent hereunder, (a) such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring
L/C Issuer and Swing Line Lender, (b) the retiring L/C Issuer and Swing Line
Lender shall be discharged from all of their respective duties and

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obligations
hereunder or under the other Loan Documents, and (c) the successor L/C Issuer
shall issue letters of credit in substitution for the Letters of Credit, if
any, outstanding at the time of such succession or make other arrangement
satisfactory to the retiring L/C Issuer to effectively assume the obligations
of the retiring L/C Issuer with respect to such Letters of Credit.

9.07        Non-Reliance on Administrative Agent
and Other Lenders.

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

9.08        No Other Duties, Etc.

Anything
herein to the contrary notwithstanding, none of the Arrangers, Bookrunners,
Syndication Agent, Documentation Agents or Senior Managing Agents listed on the
cover page hereof shall have any powers, duties or responsibilities under this
Agreement or any of the other Loan Documents, except in its capacity, as
applicable, as the Administrative Agent, a Lender or the L/C Issuer hereunder.

9.09        Administrative Agent May File Proofs
of Claim.

In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Borrower, the Administrative Agent (irrespective of
whether the principal of any Loan or L/C Obligation shall then be due and
payable as herein expressed or by declaration or otherwise and irrespective of
whether the Administrative Agent shall have made any demand on the Borrower)
shall be entitled and empowered, by intervention in such proceeding or
otherwise:

(a)           to file and prove a claim for the
whole amount of the principal and interest owing and unpaid in respect of the
Loans, L/C Obligations and all other Obligations that are owing and unpaid and
to file such other documents as may be necessary or advisable in order to have
the claims of the Lenders, the L/C Issuer and the Administrative Agent
(including any claim for the reasonable compensation, expenses, disbursements
and advances of the Lenders, the L/C Issuer and the Administrative Agent and
their respective agents and counsel and all other amounts due the Lenders, the
L/C Issuer and the Administrative Agent under Sections 2.03(i) and (j),
2.10 and 10.04) allowed in such judicial proceeding; and

(b)           to collect and receive any monies or
other property payable or deliverable on any such claims and to distribute the
same;

and
any custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Lender and the L/C Issuer to make such payments to the Administrative Agent
and, in the event that the Administrative Agent shall consent to the making of
such payments directly to the Lenders and the L/C Issuer, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Administrative Agent and its agents and
counsel, and any other amounts due the Administrative Agent under Sections
2.10 and 10.04.

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Nothing
contained herein shall be deemed to authorize the Administrative Agent to
authorize or consent to or accept or adopt on behalf of any Lender or the L/C
Issuer any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations or the rights of any Lender or to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such
proceeding.

ARTICLE X

MISCELLANEOUS

10.01      Amendments, Etc.

No
amendment or waiver of any provision of this Agreement or any other Loan
Document, and no consent to any departure by the Borrower therefrom, shall be
effective unless in writing signed by the Required Lenders and the Borrower,
and acknowledged by the Administrative Agent, and each such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given; provided, however, that no such amendment,
waiver or consent shall:

(a)           extend or increase the Commitment of
any Lender (or reinstate any Commitment terminated pursuant to Section 8.02)
without the written consent of such Lender;

(b)           postpone any date fixed by this
Agreement or any other Loan Document for any payment or mandatory prepayment of
principal, interest, fees or other amounts due to the Lenders (or any of them)
hereunder or under any other Loan Document without the written consent of each
Lender directly affected thereby;

(c)           reduce the principal of, or the rate
of interest specified herein on, any Loan or L/C Borrowing, or (subject to
clause (iv) of the second proviso to this Section 10.01) any fees or
other amounts payable hereunder (including pursuant to Section 2.06) or
under any other Loan Document without the written consent of each Lender
directly affected thereby; provided, however, that (i) only the
consent of the Required Lenders shall be necessary to amend the definition of “Default
Rate” or to waive any obligation of the Borrower to pay interest at the Default
Rate, and (ii) only the consent of the Required Revolving Lenders shall be
necessary to waive any obligation of the Borrower to pay Letter of Credit Fees
at the Default Rate;

(d)           change Section 2.14 or Section
8.03 in a manner that would alter the pro rata sharing of payments required
thereby without the written consent of each Lender;

(e)           change any provision of this Section
or the definition of “Required Lenders”, “Required Revolving Lenders” or “Required
Term Lenders” or any other provision hereof specifying the number or percentage
of Lenders required to amend, waive or otherwise modify any rights hereunder or
make any determination or grant any consent hereunder, without the written
consent of each Lender (or each Lender of such Class, as the case may be);

(f)            change or waive any condition
precedent in Section 4.02 to any Revolving Borrowing without the written
consent of the Required Revolving Lenders; or

(g)           release all or substantially all of
the Guarantors from their Guarantee without the written consent of each Lender;

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and provided, further,
that (i) no amendment, waiver or consent shall, unless in writing and signed by
the L/C Issuer in addition to the Lenders required above, affect the rights or
duties of the L/C Issuer under this Agreement or any Issuer Document relating
to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver
or consent shall, unless in writing and signed by the Swing Line Lender in
addition to the Lenders required above, affect the rights or duties of the
Swing Line Lender under this Agreement; (iii) no amendment, waiver or consent
shall, unless in writing and signed by the Administrative Agent in addition to
the Lenders required above, affect the rights or duties of the Administrative
Agent under this Agreement or any other Loan Document; and (iv) the Fee
Letter may be amended, or rights or privileges thereunder waived, in a writing
executed only by the parties thereto. 
Notwithstanding anything to the contrary herein, no Defaulting Lender
shall have any right to approve or disapprove any amendment, waiver or consent
hereunder, except that the Commitment of such Lender may not be increased or
extended without the consent of such Lender.

Notwithstanding the fact
that the consent of all the Lenders is required in certain circumstances as set
forth above, (x) each Lender is entitled to vote as such Lender sees fit on any
reorganization plan that affects the Loans or the Letters of Credit, and each
Lender acknowledges that the provisions of Section 1126(c) of the Bankruptcy
Code supersede the unanimous consent provisions set forth herein and (y) the
Required Lenders may consent to allow the Borrower to use cash collateral in
the context of a bankruptcy or insolvency proceeding.

10.02      Notices;
Effectiveness; Electronic Communication.

(a)           Notices Generally.  Except in the case of notices and other
communications expressly permitted to be given by telephone (and except as
provided in subsection (b) below), all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by
telecopier as follows, and all notices and other communications expressly
permitted hereunder to be given by telephone shall be made to the applicable telephone
number, as follows:

(i)            if to the Borrower, the
Administrative Agent, the L/C Issuer or the Swing Line Lender, to the address,
telecopier number, electronic mail address or telephone number specified for
such Person on Schedule 10.02; and

(ii)           if to any other Lender, to the
address, telecopier number, electronic mail address or telephone number
specified in its Administrative Questionnaire.

Notices sent by hand or
overnight courier service, or mailed by certified or registered mail, shall be
deemed to have been given when received; notices sent by telecopier shall be
deemed to have been given when sent (except that, if not given during normal
business hours for the recipient, shall be deemed to have been given at the
opening of business on the next business day for the recipient).  Notices delivered through electronic
communications to the extent provided in subsection (b) below, shall be
effective as provided in such subsection (b).

(b)           Electronic
Communications.  Notices and other
communications to the Lenders and the L/C Issuer hereunder may be delivered or
furnished by electronic communication (including e-mail and Internet or
intranet websites) pursuant to procedures approved by the Administrative Agent,
provided that the foregoing shall not apply to notices to any Lender or
the L/C Issuer if such Lender or the L/C Issuer, as applicable, has notified
the Administrative Agent that it is incapable of receiving notices under such
Article by electronic communication.  The
Administrative Agent or the Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications
pursuant to procedures approved by it, provided that approval of such
procedures may be limited to particular notices or communications.

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Unless the Administrative Agent otherwise prescribes, (i) notices and
other communications sent to an e-mail address shall be deemed received upon
the sender’s receipt of an acknowledgement from the intended recipient (such as
by the “return receipt requested” function, as available, return e-mail or
other written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient,
such notice or communication shall be deemed to have been sent at the opening
of business on the next business day for the recipient, and (ii) notices or
communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that such notice
or communication is available and identifying the website address therefor.

(c)           Change of
Address, Etc.  Each of the Borrower,
the Administrative Agent, the L/C Issuer and the Swing Line Lender may change
its address, telecopier or telephone number for notices and other
communications hereunder by notice to the other parties hereto.  Each other Lender may change its address,
telecopier or telephone number for notices and other communications hereunder
by notice to the Borrower, the Administrative Agent, the L/C Issuer and the
Swing Line Lender.

(d)           Reliance by Administrative Agent,
L/C Issuer and Lenders.  The
Administrative Agent, the L/C Issuer and the Lenders shall be entitled to rely and
act upon any notices (including telephonic Committed Loan Notices and Swing
Line Loan Notices) purportedly given by or on behalf of the Borrower even if
(i) such notices were not made in a manner specified herein, were incomplete or
were not preceded or followed by any other form of notice specified herein, or
(ii) the terms thereof, as understood by the recipient, varied from any
confirmation thereof.  The Borrower shall
indemnify the Administrative Agent, the L/C Issuer, each Lender and the Related
Parties of each of them from all losses, costs, expenses and liabilities
resulting from the reliance by such Person on each notice purportedly given by
or on behalf of the Borrower.  All
telephonic notices to and other telephonic communications with the Administrative
Agent may be recorded by the Administrative Agent, and each of the parties
hereto hereby consents to such recording.

10.03      No Waiver; Cumulative Remedies.

No
failure by any Lender, the L/C Issuer or the Administrative Agent to exercise,
and no delay by any such Person in exercising, any right, remedy, power or
privilege hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege.  The rights,
remedies, powers and privileges herein provided are cumulative and not exclusive
of any rights, remedies, powers and privileges provided by law.

10.04      Expenses; Indemnity; Damage Waiver.

(a)           Costs and Expenses.  The Borrower shall pay (i) all reasonable
out-of-pocket expenses incurred by the Agents and their Affiliates (including
the reasonable fees, charges and disbursements of counsel for the
Administrative Agent), in connection with the syndication of the credit facilities
provided for herein, due diligence, the preparation, negotiation, execution,
delivery and administration of this Agreement and the other Loan Documents or
any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable out-of-pocket expenses incurred by the L/C
Issuer in connection with the issuance, amendment, renewal or extension of any Letter
of Credit or any demand for payment thereunder and (iii) all out-of-pocket
expenses incurred by the Administrative Agent, any Lender or the L/C Issuer
(including 

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the fees, charges and disbursements of any
counsel for the Administrative Agent, any Lender or the L/C Issuer), in
connection with the enforcement or protection of its rights (A) in connection
with this Agreement and the other Loan Documents, including its rights under
this Section, or (B) in connection with the Loans made or Letters of Credit
issued hereunder, including all such out-of-pocket expenses incurred during any
workout, restructuring or negotiations in respect of such Loans or Letters of
Credit.

(b)           Indemnification by the Borrower.  The Borrower shall indemnify the Administrative
Agent (and any sub-agent thereof), each Lender and the L/C Issuer, the Agents
and their Affiliates and each Related Party of any of the foregoing Persons
(each such Person being called an “Indemnitee”) against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and
related expenses (including the fees, charges and disbursements of any counsel
for any Indemnitee), incurred by any Indemnitee or asserted against any
Indemnitee by any third party or by the Borrower arising out of, in connection
with, or as a result of (i) the execution or delivery of this Agreement, any
other Loan Document or any agreement or instrument contemplated hereby or
thereby, the performance by the parties hereto of their respective obligations
hereunder or thereunder or the consummation of the transactions contemplated
hereby or thereby, (ii) any Loan or Letter of Credit or the use or proposed use
of the proceeds therefrom (including any refusal by the L/C Issuer to honor a
demand for payment under a Letter of Credit if the documents presented in
connection with such demand do not strictly comply with the terms of such
Letter of Credit), (iii) any actual or alleged presence or release of Hazardous
Materials on or from any property owned or operated by the Borrower or any of
its Subsidiaries, or any Environmental Liability related in any way to the
Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing, whether
based on contract, tort or any other theory, whether brought by a third party
or by the Borrower, and regardless of whether any Indemnitee is a party
thereto; provided that such indemnity shall not, as to any Indemnitee,
be available to the extent that such losses, claims, damages, liabilities or
related expenses (x) are determined by a court of competent jurisdiction by
final and nonappealable judgment to have resulted from the gross negligence or
willful misconduct of such Indemnitee or (y) result from a claim brought by the
Borrower against an Indemnitee for breach in bad faith of such Indemnitee’s obligations
hereunder or under any other Loan Document, if the Borrower has obtained a
final and nonappealable judgment in its favor on such claim as determined by a
court of competent jurisdiction.

(c)           Reimbursement by Lenders.  To the extent that the Borrower for any
reason fails to indefeasibly pay any amount required under subsection (a) or
(b) of this Section to be paid by it to the Administrative Agent (or any
sub-agent thereof), the L/C Issuer or any Related Party of any of the foregoing
and without relieving the Borrower of its obligations with respect thereto,
each Lender severally agrees to pay to the Administrative Agent (or any such
sub-agent), the L/C Issuer or such Related Party, as the case may be, such
Lender’s Applicable Percentage (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount, provided
that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against the
Administrative Agent (or any such sub-agent) or the L/C Issuer in its capacity
as such, or against any Related Party of any of the foregoing acting for the
Administrative Agent (or any such sub-agent) or L/C Issuer in connection with
such capacity.  The obligations of the
Lenders under this subsection (c) are subject to the provisions of Section
2.13(d).

(d)           Waiver of Consequential Damages,
Etc.  To the fullest extent permitted
by applicable law, the Borrower shall not assert, and hereby waives, any claim
against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement, any
other Loan Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Loan or Letter of Credit or
the use of the proceeds thereof.  No
Indemnitee referred to in subsection (b) above shall be liable for any damages
arising from the use by unintended recipients of any information or other
materials distributed by it through telecommunications, electronic or other information
transmission systems in connection with this Agreement or the other Loan
Documents or the transactions contemplated hereby or thereby.

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(e)           Payments.  All amounts due under this Section shall be
payable not later than ten Business Days after demand therefor.

(f)            Survival.  The agreements in this Section shall survive
the resignation of the Administrative Agent, the replacement of any Lender, the
termination of the Aggregate Commitments and the repayment, satisfaction or
discharge of all the other Obligations.

10.05      Payments Set Aside.

To
the extent that any payment by or on behalf of the Borrower is made to the
Administrative Agent, the L/C Issuer or any Lender, or the Administrative
Agent, the L/C Issuer or any Lender exercises its right of setoff, and such
payment or the proceeds of such setoff or any part thereof is subsequently invalidated,
declared to be fraudulent or preferential, set aside or required (including
pursuant to any settlement entered into by the Administrative Agent, the L/C Issuer
or such Lender in its discretion) to be repaid to a trustee, receiver or any
other party, in connection with any proceeding under any Debtor Relief Law or
otherwise, then (a) to the extent of such recovery, the obligation or part
thereof originally intended to be satisfied shall be revived and continued in
full force and effect as if such payment had not been made or such setoff had
not occurred, and (b) each Lender and the L/C Issuer severally agrees to pay to
the Administrative Agent upon demand its applicable share (without duplication)
of any amount so recovered from or repaid by the Administrative Agent, plus
interest thereon from the date of such demand to the date such payment is made
at a rate per annum equal to the Federal Funds Rate from time to time in
effect.  The obligations of the Lenders
and the L/C Issuer under clause (b) of the preceding sentence shall survive the
payment in full of the Obligations and the termination of this Agreement.

10.06      Successors and Assigns.

(a)           Successors and Assigns Generally.  The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby, except that neither the
Borrower nor any other Loan Party may assign or
otherwise transfer any of its rights or obligations hereunder without the prior
written consent of the Administrative Agent and each Lender and no Lender may
assign or otherwise transfer any of its rights or obligations hereunder except
(i) to an assignee in accordance with the provisions of subsection (b) of this
Section, (ii) by way of participation in accordance with the provisions of
subsection (d) of this Section, (iii) by way of pledge or assignment of a
security interest subject to the restrictions of subsection (f) of this
Section, or (iv) to an SPC in accordance with the provisions of subsection (h)
of this Section (and any other attempted assignment or transfer by any party
hereto shall be null and void).  Nothing
in this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in subsection (d) of this
Section and, to the extent expressly contemplated hereby, the Related Parties
of each of the Administrative Agent, the L/C Issuer and the Lenders) any legal
or equitable right, remedy or claim under or by reason of this Agreement.

(b)           Assignments by Lenders.  Any Lender may at any time assign to one or
more assignees all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans
(including for purposes of this subsection (b), participations in L/C Obligations
and in Swing Line Loans) at the time owing to it); provided that any
such assignment shall be subject to the following conditions:

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(i)            Minimum
Amounts.

(A)          in
the case of an assignment of the entire remaining amount of the assigning
Lender’s Commitment and the Loans at the time owing to it or in the case of an
assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no
minimum amount need be assigned; and

(B)           in
any case not described in subsection (b)(i)(A) of this Section, the aggregate
amount of the Commitment (which for this purpose includes Loans outstanding
thereunder) or, if the Commitment is not then in effect, the principal
outstanding balance of the Loans of the assigning Lender subject to each such
assignment, determined as of the date the Assignment and Assumption with
respect to such assignment is delivered to the Administrative Agent or, if “Trade
Date” is specified in the Assignment and Assumption, as of the Trade Date,
shall not be less than $5,000,000 in the case of any assignment in respect of
Revolving Loans or $1,000,000 in the case of any assignment in respect of Term
Loans unless each of the Administrative Agent and, so long as no Event of
Default has occurred and is continuing, the Borrower otherwise consents (each
such consent not to be unreasonably withheld or delayed); provided, however,
that concurrent assignments to members of an Assignee Group and concurrent
assignments from members of an Assignee Group to a single assignee (or to an
assignee and members of its Assignee Group) will be treated as a single assignment
for purposes of determining whether such minimum amount has been met.

(ii)           Proportionate
Amounts.  Each partial assignment
shall be made as an assignment of a proportionate part of all the assigning
Lender’s rights and obligations under this Agreement with respect to the Loans
or the Commitment assigned, except that this clause (ii) shall not apply to the
Swing Line Lender’s rights and obligations in respect of Swing Line Loans;

(iii)          Required
Consents.  No consent shall be
required for any assignment except to the extent required by subsection
(b)(i)(B) of this Section and, in addition:

(A)          the
consent of the Borrower (such consent not to be unreasonably withheld or
delayed) shall be required unless (1) an Event of Default has occurred and is
continuing at the time of such assignment or (2) such assignment is to a
Lender, an Affiliate of a Lender or an Approved Fund;

(B)           the
consent of the Administrative Agent (such consent not to be unreasonably
withheld or delayed) shall be required if such assignment is to a Person that
is not a Lender, an Affiliate of such Lender or an Approved Fund with respect
to such Lender;

(C)           the
consent of the L/C Issuer (such consent not to be unreasonably withheld or
delayed) shall be required for any assignment of a Revolving Commitment that
increases the obligation of the assignee to participate in exposure under one
or more Letters of Credit (whether or not then outstanding) unless the Person
that is the proposed assignee is itself a Revolving Lender (whether or not the
proposed assignee would otherwise qualify as an Eligible Assignee); and

(D)          the
consent of the Swing Line Lender (such consent not to be unreasonably withheld
or delayed) shall be required for any assignment of a Revolving Commitment
unless the Person that is the proposed assignee is itself a Revolving Lender
(whether or not the proposed assignee would otherwise qualify as an Eligible
Assignee).

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(iv)          Assignment
and Assumption.  The parties to each
assignment shall execute and deliver to the Administrative Agent an Assignment
and Assumption, together with a processing and recordation fee in the amount of
$3,500; provided, however, that the Administrative Agent may, in
its sole discretion, elect to waive such processing and recordation fee in the
case of any assignment.  The assignee, if
it is not a Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire.

(v)           No
Assignment to the Borrower.  No such
assignment shall be made to the Borrower or any of the Borrower’s Affiliates or
Subsidiaries.

(vi)          No
Assignment to Natural Persons.  No
such assignment shall be made to a natural person.

Subject
to acceptance and recording thereof by the Administrative Agent pursuant to
subsection (c) of this Section, from and after the effective date specified in
each Assignment and Assumption, the Eligible Assignee thereunder shall be a
party to this Agreement and, to the extent of the interest assigned by such
Assignment and Assumption, have the rights and obligations of a Lender under
this Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto) but shall
continue to be entitled to the benefits of Sections 3.01, 3.04, 3.05,
and 10.04 with respect to facts and circumstances occurring prior to the
effective date of such assignment.  Upon
request, the Borrower (at its expense) shall execute and deliver a Note to the
assignee Lender.  Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does
not comply with this subsection shall be treated for purposes of this Agreement
as a sale by such Lender of a participation in such rights and obligations in
accordance with subsection (d) of this Section.

(c)           Register.  The Administrative Agent, acting solely for
this purpose as an agent of the Borrower, shall maintain at the Administrative
Agent’s Office a copy of each Assignment and Assumption delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the
Commitments of, and principal amounts of the Loans and L/C Obligations owing
to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive,
and the Borrower, the Administrative Agent and the Lenders may treat each
Person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for all purposes of this Agreement, notwithstanding notice to
the contrary.  The Register shall be
available for inspection by the Borrower, the L/C Issuer, the Swing Line Lender
and any Lender (with respect to its own interest only), at any reasonable time
and from time to time upon reasonable prior notice.

(d)           Participations.  Any Lender may at any time, without the
consent of, or notice to, the Borrower or the Administrative Agent, sell
participations to any Person (other than a natural person or the Borrower or
any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”)
in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans
(including such Lender’s participations in L/C Obligations and/or Swing Line
Loans) owing to it); provided that (i) such Lender’s obligations
under this Agreement shall remain unchanged, (ii) such Lender shall remain
solely responsible to the other parties hereto for the performance of such
obligations and (iii) the Borrower, the Administrative Agent, the Lenders
and the L/C Issuer shall continue to deal solely and directly with such Lender
in connection with such Lender’s rights and obligations under this Agreement.

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Any agreement
or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement
and to approve any amendment, modification or waiver of any  provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, waiver or other
modification described in the first proviso to Section 10.01 that
affects such Participant.  Subject to subsection
(e) of this Section, the Borrower agrees that each Participant shall be
entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to subsection (b) of this Section.  To the extent permitted by law, each Participant
also shall be entitled to the benefits of Section 10.08 as though it were a Lender, provided such
Participant agrees to be subject to Section 2.13 as though it were a
Lender.

(e)           Limitations upon Participant
Rights.  A Participant shall not be
entitled to receive any greater payment under Section 3.01 or 3.04 than the applicable Lender would have been entitled to receive
with respect to the participation sold to such Participant, unless the sale of
the participation to such Participant is made with the Borrower’s prior written
consent.  A Participant that would be a
Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 3.01
unless the Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of the Borrower, to comply with Section
3.01(e) as though it were a Lender.

(f)            Certain Pledges.  Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement
(including under its Note, if any) to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank; provided that no such pledge or assignment shall release such
Lender from any of its obligations hereunder or substitute any such pledgee or
assignee for such Lender as a party hereto.

(g)           Electronic Execution of
Assignments.  The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be
deemed to include electronic signatures or the keeping of records in electronic
form, each of which shall be of the same legal effect, validity or enforceability
as a manually executed signature or the use of a paper-based recordkeeping system,
as the case may be, to the extent and as provided for in any applicable law,
including the Federal Electronic Signatures in Global and National Commerce
Act, the New York State Electronic Signatures and Records Act, or any other
similar state laws based on the Uniform Electronic Transactions Act.

(h)           Special Purpose Funding Vehicles.  Notwithstanding anything to the contrary
contained herein, any Lender (a “Granting Lender”) may grant to a
special purpose funding vehicle identified as such in writing from time to time
by the Granting Lender to the Administrative Agent and the Borrower (an “SPC”)
the option to provide all or any part of any Committed Loan that such Granting
Lender would otherwise be obligated to make pursuant to this Agreement; provided
that (i) nothing herein shall constitute a commitment by any SPC to fund any
Committed Loan, and (ii) if an SPC elects not to exercise such option or
otherwise fails to make all or any part of such Committed Loan, the Granting
Lender shall be obligated to make such Committed Loan pursuant to the terms
hereof or, if it fails to do so, to make such payment to the Administrative
Agent as is required under Section 2.13(b)(ii).  Each party hereto hereby agrees that (i)
neither the grant to any SPC nor the exercise by any SPC of such option shall
increase the costs or expenses or otherwise increase or change the obligations
of the Borrower under this Agreement (including its obligations under Section
3.04), (ii) no SPC shall be liable for any indemnity or similar payment
obligation under this Agreement for which a Lender would be liable, and (iii)
the Granting Lender shall for all purposes, including the approval of any amendment,
waiver or other modification of any provision of any Loan Document, remain the
lender of record hereunder.  The making
of a Committed Loan by an SPC hereunder shall utilize the Commitment of the
Granting Lender to the same extent, and as if, such Committed Loan were made by
such Granting Lender.  In furtherance of
the foregoing, each party hereto hereby agrees (which agreement shall survive
the 

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termination of this Agreement) that, prior to
the date that is one year and one day after the payment in full of all
outstanding commercial paper or other senior debt of any SPC, it will not
institute against, or join any other Person in instituting against, such SPC
any bankruptcy, reorganization, arrangement, insolvency, or liquidation proceeding
under the laws of the United States or any State thereof.  Notwithstanding anything to the contrary
contained herein, any SPC may (i) with notice to, but without prior consent of
the Borrower and the Administrative Agent and with the payment of a processing
fee in the amount of $3,500 (which processing fee may be waived by the
Administrative Agent in its sole discretion), assign all or any portion of its
right to receive payment with respect to any Committed Loan to the Granting
Lender and (ii) disclose on a confidential basis any non-public information
relating to its funding of Committed Loans to any rating agency, commercial
paper dealer or provider of any surety or Guarantee or credit or liquidity
enhancement to such SPC.

(i)            Resignation as L/C Issuer or
Swing Line Lender after Assignment. 
Notwithstanding anything to the contrary contained herein, if at any
time Bank of America assigns all of its Commitment and Loans pursuant to
subsection (b) above, Bank of America may, (i) upon 30 days’ notice to the
Borrower and the Lenders, resign as L/C Issuer and/or (ii) upon 30 days’ notice
to the Borrower, resign as Swing Line Lender. 
In the event of any such resignation as L/C Issuer or Swing Line Lender,
the Borrower shall be entitled to appoint from among the Lenders a successor
L/C Issuer or Swing Line Lender hereunder; provided, however,
that no failure by the Borrower to appoint any such successor shall affect the
resignation of Bank of America as L/C Issuer or Swing Line Lender, as the case
may be.  If Bank of America resigns as
L/C Issuer, it shall retain all the rights, powers, privileges and duties of
the L/C Issuer hereunder with respect to all Letters of Credit outstanding as
of the effective date of its resignation as L/C Issuer and all L/C Obligations
with respect thereto (including the right to require the Lenders to make Base
Rate Committed Loans or fund risk participations in Unreimbursed Amounts pursuant
to Section 2.03(c)).  If Bank of
America resigns as Swing Line Lender, it shall retain all the rights of the
Swing Line Lender provided for hereunder with respect to Swing Line Loans made
by it and outstanding as of the effective date of such resignation, including
the right to require the Lenders to make Base Rate Committed Loans or fund risk
participations in outstanding Swing Line Loans pursuant to Section 2.04(c).  Upon the appointment of a successor L/C
Issuer and/or Swing Line Lender, (a) such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring
L/C Issuer or Swing Line Lender, as the case may be, and (b) the successor L/C
Issuer shall issue letters of credit in substitution for the Letters of Credit,
if any, outstanding at the time of such succession or make other arrangements
satisfactory to Bank of America to effectively assume the obligations of Bank
of America with respect to such Letters of Credit.

10.07      Treatment of Certain Information;
Confidentiality.

Each
of the Administrative Agent, the Lenders and the L/C Issuer agrees to maintain
the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its Affiliates and to its and its
Affiliates’ respective partners, directors, officers, employees, agents, advisors
and representatives (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to the
extent requested by any regulatory authority purporting to have jurisdiction
over it (including any self-regulatory authority, such as the National
Association of Insurance Commissioners), (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (d)
to any other party hereto, (e) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any action or proceeding relating
to this Agreement or any other Loan Document or the enforcement of rights
hereunder or thereunder, (f) subject to an agreement containing provisions substantially
the same as those of this Section, to (i) any assignee of or Participant in, or
any prospective assignee of or Participant in, any of its rights or obligations
under this Agreement or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to the Borrower 

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and
its obligations, (g) with the consent of the Borrower, (h) to the extent
such Information (x) becomes publicly available other than as a result of a
breach of this Section or (y) becomes available to the Administrative Agent,
any Lender, the L/C Issuer or any of their respective Affiliates on a
nonconfidential basis from a source other than the Borrower that the Administrative
Agent, any such Lender or the L/C Issuer reasonably believes is not bound by a
duty of confidentiality to the Borrower or (i) as reasonably required by any Lender or other Person
providing financing to such Lender (provided such Lenders or other
Persons are advised of the confidential nature of such information and agree to
keep such information confidential).

For
purposes of this Section, “Information” means all information received
from the Borrower or any Subsidiary relating to the Borrower or any Subsidiary
or any of their respective businesses, other than any such information that is
available to the Administrative Agent, any Lender or the L/C Issuer on a
nonconfidential basis prior to disclosure by the Borrower or any Subsidiary, provided
that, in the case of information received from the Borrower or any Subsidiary
after the date hereof, such information is clearly identified at the time of
delivery as confidential.  Any Person
required to maintain the confidentiality of Information as provided in this
Section shall be considered to have complied with its obligation to do so if
such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own confidential
information.

10.08      Right of Setoff.

If
an Event of Default shall have occurred and be continuing, each Lender, the L/C
Issuer and each of their respective Affiliates is hereby authorized at any time
and from time to time, to the fullest extent permitted by applicable law, to
set off and apply any and all deposits (general or special, time or demand,
provisional or final, in whatever currency) at any time held and other obligations
(in whatever currency) at any time owing by such Lender, the L/C Issuer or any
such Affiliate to or for the credit or the account of the Borrower against any
and all of the obligations of the Borrower now or hereafter existing under this
Agreement or any other Loan Document to such Lender or the L/C Issuer, irrespective
of whether or not such Lender or the L/C Issuer shall have made any demand
under this Agreement or any other Loan Document and although such obligations
of the Borrower may be contingent or unmatured or are owed to a branch or
office of such Lender or the L/C Issuer different from the branch or office
holding such deposit or obligated on such indebtedness.  The rights of each Lender, the L/C Issuer and
their respective Affiliates under this Section are in addition to other rights
and remedies (including other rights of setoff) that such Lender, the L/C
Issuer or their respective Affiliates may have. 
Each Lender and the L/C Issuer agrees to notify the Borrower and the
Administrative Agent promptly after any such setoff and application, provided
that the failure to give such notice shall not affect the validity of such
setoff and application.

10.09      Interest Rate Limitation.

Notwithstanding
anything to the contrary contained in any Loan Document, the interest paid or
agreed to be paid under the Loan Documents shall not exceed the maximum rate of
non-usurious interest permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender
shall receive interest in an amount that exceeds the Maximum Rate, the excess
interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Borrower. 
In determining whether the interest contracted for, charged, or received
by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any payment that
is not principal as an expense, fee, or premium rather than interest, (b)
exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of
interest throughout the contemplated term of the Obligations hereunder.

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10.10      Counterparts; Integration;
Effectiveness.

This
Agreement may be executed in counterparts (and by different parties hereto in
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract.  This Agreement and the other Loan Documents
constitute the entire contract among the parties relating to the subject matter
hereof and supersede any and all previous agreements and understandings, oral
or written, relating to the subject matter hereof.  Except as provided in Section 4.01,
this Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received
counterparts hereof that, when taken together, bear the signatures of each of
the other parties hereto.  Delivery of an
executed counterpart of a signature page of this Agreement by telecopy shall be
effective as delivery of a manually executed counterpart of this Agreement.

10.11      Survival of Representations and
Warranties.

All
representations and warranties made hereunder and in any other Loan Document or
other document delivered pursuant hereto or thereto or in connection herewith
or therewith shall survive the execution and delivery hereof and thereof.  Such representations and warranties have been
or will be relied upon by the Administrative Agent and each Lender, regardless
of any investigation made by the Administrative Agent or any Lender or on their
behalf and notwithstanding that the Administrative Agent or any Lender may have
had notice or knowledge of any Default at the time of any Credit Extension, and
shall continue in full force and effect as long as any Loan or any other
Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit
shall remain outstanding.

10.12      Severability.

If
any provision of this Agreement or the other Loan Documents is held to be
illegal, invalid or unenforceable, (a) the legality, validity and
enforceability of the remaining provisions of this Agreement and the other Loan
Documents shall not be affected or impaired thereby and (b) the parties shall
endeavor in good faith negotiations to replace the illegal, invalid or unenforceable
provisions with valid provisions the economic effect of which comes as close as
possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

10.13      Replacement of Lenders.

If
any Lender requests compensation under Section 3.04, or if the Borrower
is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, if any
Lender is a Defaulting Lender, then the Borrower may, at its sole expense and effort,
upon notice to such Lender and the Administrative Agent, require such Lender to
assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in, and consents required by, Section 10.06), all
of its interests, rights and obligations under this Agreement and the related
Loan Documents to an assignee that shall assume such obligations (which assignee
may be another Lender, if a Lender accepts such assignment), provided
that:

(a)           the Borrower shall have paid to the
Administrative Agent the assignment fee specified in Section 10.06(b);

(b)           such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans and L/C
Advances, accrued interest thereon, accrued fees and all other amounts payable
to it hereunder and under the other Loan Documents (including any amounts under
Section 3.05) from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the Borrower (in the case of all
other amounts);

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(c)           in the case of any such assignment
resulting from a claim for compensation under Section 3.04 or payments
required to be made pursuant to Section 3.01, such assignment will result
in a reduction in such compensation or payments thereafter; and

(d)           such assignment does not conflict
with applicable Laws.

A
Lender shall not be required to make any such assignment or delegation if,
prior thereto, as a result of a waiver by such Lender or otherwise, the
circumstances entitling the Borrower to require such assignment and delegation
cease to apply.

10.14      Governing Law; Jurisdiction; Etc.

(a)           GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION.

(b)           SUBMISSION TO JURISDICTION.  EACH LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED
STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE
COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT
OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD
AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, IN SUCH FEDERAL COURT. 
EACH OF THE PARTIES HERETO AGREES 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 AGREEMENT OR IN ANY OTHER
LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER
OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ITS
PROPERTIES IN THE COURTS OF ANY JURISDICTION.

(c)           WAIVER OF VENUE.  EACH LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY
COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 86
 

 

(d)           SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO
SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE
RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
APPLICABLE LAW.

10.15      Waiver of Jury Trial.

EACH
PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

10.16      No Advisory or Fiduciary Responsibility.

In
connection with all aspects of each transaction contemplated hereby, the
Borrower and each other Loan Party acknowledges and agrees, and acknowledges
its Affiliates’ understanding, that: (i) the credit facilities provided for
hereunder and any related arranging or other services in connection therewith
(including in connection with any amendment, waiver or other modification
hereof or of any other Loan Document) are an arm’s-length commercial
transaction between the Borrower, each other Loan Party and their respective
Affiliates, on the one hand, and the Administrative Agent and each Arranger, on
the other hand, and the Borrower and each other Loan Party is capable of
evaluating and understanding and understands and accepts the terms, risks and
conditions of the transactions contemplated hereby and by the other Loan
Documents (including any amendment, waiver or other modification hereof or
thereof); (ii) in connection with the process leading to such transaction, the
Administrative Agent and each Arranger is and has been acting solely as a
principal and is not the financial advisor, agent or fiduciary, for the Borrower,
any other Loan Party or any of their respective Affiliates, stockholders,
creditors or employees or any other Person; (iii) neither the Administrative
Agent nor any Arranger has assumed or will assume an advisory, agency or
fiduciary responsibility in favor of the Borrower or any other Loan Party with
respect to any of the transactions contemplated hereby or the process leading
thereto, including with respect to any amendment, waiver or other modification
hereof or of any other Loan Document (irrespective of whether the
Administrative Agent or any Arranger has advised or is currently advising the
Borrower, any other Loan Party or any of their respective Affiliates on other
matters) and neither the Administrative Agent nor any Arranger has any
obligation to the Borrower, any other Loan Party or any of their respective
Affiliates with respect to the transactions contemplated hereby except those
obligations expressly set forth herein and in the other Loan Documents; (iv)
the Administrative Agent and the Arrangers and their respective Affiliates may
be engaged in a broad range of transactions that involve interests that differ
from those of the Borrower, the other Loan Parties and their respective
Affiliates, and neither the Administrative Agent nor any Arranger has any
obligation to disclose any of such interests by virtue of any advisory, agency
or fiduciary relationship; and (v) the Administrative Agent and the Arrangers
have not provided and will not provide any legal, accounting, regulatory or tax
advice with respect to any of the transactions contemplated hereby (including
any amendment, waiver or other modification hereof or of any other Loan
Document) and each of the Borrower and the other Loan Parties has consulted its
own legal, accounting, regulatory and tax advisors to the extent it has deemed
appropriate.  Each of the Borrower and
the other Loan Parties hereby waives and releases, to the fullest extent
permitted by law, any claims that it may have against the Administrative Agent
and the Arrangers with respect to any breach or alleged breach of agency or
fiduciary duty.

 87
 

 

10.17      USA Patriot Act Notice.

Each
Lender that is subject to the Patriot Act (as hereinafter defined) and the
Administrative Agent (for itself and not on behalf of any Lender) hereby
notifies the Borrower that pursuant to the requirements of the USA Patriot Act
(Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot
Act”), it is required to obtain, verify and record information that
identifies the Borrower, which information includes the name and address of the
Borrower and other information that will allow such Lender or the Administrative
Agent, as applicable, to identify the Borrower in accordance with the Patriot
Act.

10.18      Delivery of Signature Page.

Each
Lender to become a party to this Agreement on the date hereof shall do so by
delivering to the Administrative Agent a counterpart of this Agreement duly
executed by such Lender.

ARTICLE XI

GUARANTY

11.01      The Guaranty.

Each
of the Guarantors hereby jointly and severally guarantees to each Lender, each
Affiliate of a Lender that enters into a Swap Contract or a Treasury Management
Agreement, and the Administrative Agent as hereinafter provided, as primary
obligor and not as surety, the prompt payment of the Obligations in full when
due (whether at stated maturity, as a mandatory prepayment, by acceleration, as
a mandatory cash collateralization or otherwise) strictly in accordance with
the terms thereof.  The Guarantors hereby
further agree that if any of the Obligations are not paid in full when due
(whether at stated maturity, as a mandatory prepayment, by acceleration as a
mandatory cash collateralization or otherwise), the Guarantors will, jointly
and severally, promptly pay the same, without any demand or notice whatsoever,
and that in the case of any extension of time of payment or renewal of any of
the Obligations, the same will be promptly paid in full when due (whether at
extended maturity, as a mandatory prepayment, by acceleration, as a mandatory
cash collateralization or otherwise) in accordance with the terms of such
extension or renewal.

Notwithstanding
any provision to the contrary herein or in any other of the Loan Documents or
Swap Contracts or Treasury Management Agreements, the obligations of each
Guarantor under this Agreement and the other Loan Documents shall be limited to
an aggregate amount equal to the largest amount that would not render such
obligations subject to avoidance under the Debtor Relief Laws or any comparable
provisions of any applicable state law.

11.02      Obligations Unconditional.

The
obligations of the Guarantors under Section 11.01 are joint and several,
absolute and unconditional, irrespective of the value, genuineness, validity,
regularity or enforceability of any of the Loan Documents, Swap Contracts or
Treasury Management Agreements, or any other agreement or instrument referred
to therein, or any substitution, release, impairment or exchange of any other
guarantee of or security for any of the Obligations, and, to the fullest extent
permitted by applicable law, 

 88
 

 

irrespective
of any other circumstance whatsoever which might otherwise constitute a legal
or equitable discharge or defense of a surety or guarantor (other than the
payment of the Obligations), it being the intent of this Section 11.02
that the obligations of the Guarantors hereunder shall be absolute and
unconditional under any and all circumstances (other than the payment of the
Obligations).  Each Guarantor agrees that
such Guarantor shall not exercise any right of subrogation, indemnity,
reimbursement or contribution against the Borrower or any other Guarantor for
amounts paid under this Article XI until such time as the Obligations
have been fully satisfied.  Without
limiting the generality of the foregoing, it is agreed that, to the fullest
extent permitted by law, the occurrence of any one or more of the following
shall not alter or impair the liability of any Guarantor hereunder which shall
remain absolute and unconditional as described above:

(a)           at any time or from time to time,
without notice to any Guarantor, the time for any performance of or compliance
with any of the Obligations shall be extended, or such performance or
compliance shall be waived;

(b)           any of the acts mentioned in any of
the provisions of any of the Loan Documents, any Swap Contract or any Treasury
Management Agreement between any Lender and any Affiliate of a Lender, or any
other agreement or instrument referred to in the Loan Documents or such Swap
Contracts shall be done or omitted;

(c)           the maturity of any of the
Obligations shall be accelerated, or any of the Obligations shall be modified,
supplemented or amended in any respect, or any right under any of the Loan
Documents, any Swap Contract or any Treasury Management Agreement between any
Lender and any Affiliate of a Lender, or any other agreement or instrument
referred to in the Loan Documents or such Swap Contracts or such Treasury
Management Agreements shall be waived or any other guarantee of any of the
Obligations or any security therefor shall be released, impaired or exchanged
in whole or in part or otherwise dealt with;

(d)           any Lien granted to, or in favor of,
the Administrative Agent or any Lender or Lenders as security for any of the
Obligations shall fail to attach or be perfected; or

(e)           any of the Obligations shall be determined
to be void or voidable (including, without limitation, for the benefit of any
creditor of any Guarantor) or shall be subordinated to the claims of any Person
(including, without limitation, any creditor of any Guarantor).

With
respect to its obligations hereunder, each Guarantor hereby expressly waives
diligence, presentment, demand of payment, protest and all notices whatsoever,
any law, regulation, decree or order of any jurisdiction or any event affecting
any term of the Obligations and any requirement that the Administrative Agent
or any Lender exhaust any right, power or remedy or proceed against any Person
under any of the Loan Documents, any Swap Contract or any Treasury Management
Agreement between any Consolidated Party and any Lender, or any Affiliate of a
Lender, or any other agreement or instrument referred to in the Loan Documents
or such Swap Contracts or such Treasury Management Agreements, or against any
other Person under any other guarantee of, or security for, any of the Obligations.

11.03      Reinstatement.

The
obligations of the Guarantors under this Article XI shall be
automatically reinstated if and to the extent that for any reason any payment
by or on behalf of any Person in respect of the Obligations is rescinded or
must be otherwise restored by any holder of any of the Obligations, whether as
a result of any proceedings in bankruptcy or reorganization or otherwise, and
each Guarantor agrees that it will 

 89
 

 

indemnify
the Administrative Agent and each Lender within 10 days of written demand
(together with back up documentation supporting such reimbursement) for all
reasonable costs and expenses (including, without limitation, reasonable fees
and expenses of counsel) incurred by the Administrative Agent or such Lender in
connection with such rescission or restoration, including any such costs and
expenses incurred in defending against any claim alleging that such payment
constituted a preference, fraudulent transfer or similar payment under any
bankruptcy, insolvency or similar law.

11.04      Certain Additional Waivers.

Each
Guarantor agrees that such Guarantor shall have no right of recourse to
security for the Obligations, except through the exercise of rights of
subrogation pursuant to Section 11.02 and through the exercise of rights
of contribution pursuant to Section 11.06.

11.05      Remedies.

The
Guarantors agree that, to the fullest extent permitted by law, as between the
Guarantors, on the one hand, and the Administrative Agent and the Lenders, on
the other hand, the Obligations may be declared to be forthwith due and payable
as provided in Section 8.02 (and shall be deemed to have become
automatically due and payable in the circumstances provided in said Section
8.02) for purposes of Section 11.01 notwithstanding any stay,
injunction or other prohibition preventing such declaration (or preventing the
Obligations from becoming automatically due and payable) as against any other
Person and that, in the event of such declaration (or the Obligations being
deemed to have become automatically due and payable), the Obligations (whether
or not due and payable by any other Person) shall forthwith become due and
payable by the Guarantors for purposes of Section 11.01.

11.06      Rights of Contribution.

The
Guarantors hereby agree as among themselves that, in connection with payments
made hereunder, each Guarantor shall have a right of contribution from each
other Guarantor in accordance with applicable Law.  Such contribution rights shall be subordinate
and subject in right of payment to the Obligations until such time as the
Obligations have been fully satisfied, and none of the Guarantors shall
exercise any such contribution rights relating to payments made hereunder until
the Obligations have been fully satisfied.

11.07      Guarantee of Payment; Continuing
Guarantee.

The guarantee in this Article XI is a
guaranty of payment and not of collection, is a continuing guarantee, and shall
apply to all Obligations whenever arising.

 90

 

Each of the parties hereto
have caused a counterpart of this Agreement to be duly executed as of the date
first above written.

	
  

  	
  HEALTH CARE PROPERTY INVESTORS, INC.,

  
	
   

  	
  as Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward J. Henning

  	
   

  
	
   

  	
  Name:

  	
  Edward J. Henning

  	
   

  
	
   

  	
  Title:

  	
  Authorized Signatory

  	
   

  

 

 

 

 

	
  

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
  as Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Angela Lau

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Angela Lau

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
  as Swing Line Lender, L/C Issuer and a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joseph L. Corah

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Joseph L. Corah

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  BANC OF AMERICA SECURITIES LLC,

  
	
   

  	
  as a Joint Lead Arranger and Joint Bookrunner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert N. Allen

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert N. Allen

  
	
   

  	
   

  	
  Title:

  	
  Principal

  
					

 

 

 

	
  

  	
  UBS LOAN FINANCE LLC,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard L. Tavrow

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Richard L. Tavrow

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Irja R.Otsa

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Irja R.Otsa

  
	
   

  	
   

  	
  Title:

  	
  Associate Director

  
	
   

  	
   

  	
   

  
	
   

  	
  UBS SECURITIES LLC,

  
	
   

  	
  as a Joint Lead Arranger, Joint Bookrunner and

  
	
   

  	
  Syndication Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard L.
  Tavrow

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Richard L. Tavrow

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Irja R.Otsa

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Irja R.Otsa

  
	
   

  	
   

  	
  Title:

  	
  Associate Director

  
					

 

 

 

	
  

  	
  JPMORGAN CHASE BANK, N.A.,

  
	
   

  	
  as Co-Documentation Agent and a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Susan M.
  Tate

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Susan M. Tate

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  J.P. MORGAN SECURITIES INC.,

  
	
   

  	
  as Joint Bookrunner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John J.
  Regan Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John J. Regan Jr.

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
					

 

 

 

	
  

  	
  BARCLAYS BANK PLC,

  
	
   

  	
  as Co-Documentation Agent and a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas
  Bernegger

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Douglas Bernegger

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  BARCLAYS CAPITAL,

  
	
   

  	
  as Joint Bookrunner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas
  Bernegger

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Douglas Bernegger

  
	
   

  	
   

  	
  Title:

  	
  Director

  
					

 

 

 

	
  

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as Co-Documentation Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James S. Conville

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James S. Conville

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  
					

 

 

 

	
  

  	
  GOLDMAN SACHS CREDIT PARTNERS L.P.,

  
	
   

  	
  as Co-Documentation Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen P.
  Hickey

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stephen P. Hickey

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  
					

 

 

 

	
  

  	
  MERRILL LYNCH BANK USA,

  
	
   

  	
  as Co-Documentation Agent and a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Louis Alder

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Louis Alder

  
	
   

  	
   

  	
  Title:

  	
  Director

  
					

 

 

 

	
  

  	
  WELLS FARGO BANK, N.A.,

  
	
   

  	
  as a Senior Managing Agent and a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David W.
  Shaw

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David W. Shaw

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

 

	
  

  	
  CITICORP NORTH AMERICA, INC.,

  
	
   

  	
  as a Senior Managing Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Malav Kakad

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Malav Kakad

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
					

 

 

 

	
  

  	
  CREDIT SUISSE, CAYMAN ISLANDS BRANCH,

  
	
   

  	
  as a Senior Managing Agent and a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bill O’ Daly

  	
   

  
	
   

  	
   

  	
  Name:

  	
  BILL O’ DALY

  
	
   

  	
   

  	
  Title:

  	
  DIRECTOR

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rianka Mohan

  	
   

  
	
   

  	
   

  	
  Name:

  	
  RIANKA MOHAN

  
	
   

  	
   

  	
  Title:

  	
  ASSOCIATE

  
					

 

 

 

	
  

  	
  KEY BANK NATIONAL ASSOCIATION,

  
	
   

  	
  as a Senior Managing Agent and a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bellini
  Lacey

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Bellini Lacey

  
	
   

  	
   

  	
  Title:

  	
  Closing Officer

  
					

 

 

 

	
  

  	
  SUNTRUST BANK,

  
	
   

  	
  as a Senior Managing Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory M.
  Ratliff

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gregory M. Ratliff

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

 

	
  

  	
  THE BANK OF NOVA SCOTIA,

  
	
   

  	
  as a Senior Managing Agent and a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William E.
  Zarrett

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William E. Zarrett

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
					

 

 

	
  

  	
  THE ROYAL BANK OF SCOTLAND plc,

  
	
   

  	
  as a Senior Managing Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Neil J.
  Crawford

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Neil J. Crawford

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice-President

  
					

 

 

 

	
  

  	
  EMIGRANT BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patricia Goldstein

  	
   

  
	
   

  	
   

  	
  Name:

  	
  PATRICIA GOLDSTEIN

  
	
   

  	
   

  	
  Title:

  	
  SENIOR EXECUTIVE, VICE PRESIDENT

  
					

 

 

 

	
  

  	
  SCOTIABANC INC,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William E.
  Zarrett

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William E. Zarrett

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
					

 

 

 

	
  

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jonathan
  Rollins

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jonathan Rollins, CFA

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

 

	
  

  	
  REGIONS BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Anthony D.
  Nigro

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Anthony D. Nigro

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
						

 

 

 

	
  

  	
  SUMITOMO MITSUI BANKING CORPORATION,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William M.
  Ginn

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William M. Ginn

  
	
   

  	
   

  	
  Title:

  	
  General Manager

  
					

 

 

 

	
  

  	
  NATIONAL BANK OF EGYPT, NEW YORK

  BRANCH,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Hassan Eissa

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Hassan Eissa

  
	
   

  	
   

  	
  Title:

  	
  General Manager

  
					

 

 

 

	
  

  	
  FIRST COMMERCIAL BANK, LOS ANGELES

  BRANCH,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chih-Tiao
  Shih

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Chih-Tiao Shih

  
	
   

  	
   

  	
  Title:

  	
  SVAP & Deputy General Manager

  
					

 

 

 

	
  

  	
  KBC BANK N.V.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William
  Cavanaugh

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William Cavanaugh

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert
  Snauffer

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert Snauffer

  
	
   

  	
   

  	
  Title:

  	
  First Vice
  President

  
					

 

 

 

	
  

  	
  LAND BANK OF TAIWAN,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Henry C. R.
  Lou

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Henry C. R. Lou

  
	
   

  	
   

  	
  Title:

  	
  VP & General Manager

  
					

 

 

 

	
  

  	
  MIDFIRST BANK, A FEDERALLY CHARTERED

  
	
   

  	
  SAVINGS ASSOCIATION,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Darrin D.
  Rigler

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Darrin D. Rigler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  National Lending

  
					

 

 

 

	
  

  	
  TAIWAN BUSINESS BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ben Chou

  	
   

  
	
   

  	
   

  	
  Name:

  	
  BEN CHOU

  
	
   

  	
   

  	
  Title:

  	
  VP & GENERAL MANAGER

  
					

 

 

 

	
  

  	
  THE TAIPEI FUBON COMMERCIAL BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sophia Jing

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Sophia Jing

  
	
   

  	
   

  	
  Title:

  	
  VP & General Manager

  
						

 

 

 

	
  

  	
  HUA NAN COMMERCIAL BANK, LTD. NEW

  YORK AGENCY,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Te-Chin Wang

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Te-Chin Wang

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  
						

 

 

 

	
  

  	
  CHANG HWA COMMERCIAL BANK, LTD., NEW

  YORK BRANCH,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jim C. Y.
  Chen

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jim C. Y. Chen

  
	
   

  	
   

  	
  Title:

  	
  VP & General Manager

  
					

 

 

 

	
  

  	
  BANK OF THE WEST, A CALIFORNIA

  BANKING CORPORATION,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chulk
  Weeragooriya

  	
   

  
	
   

  	
   

  	
  Name:

  	
  CHULK WEERAGOORIYA

  
	
   

  	
   

  	
  Title:

  	
  SENIOR VICE PRESIDENT

  
					

 

 

 

	
  

  	
  BANK OF THE WEST, A CALIFORNIA

  BANKING CORPORATION,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Wendi D. Reed

  	
   

  
	
   

  	
   

  	
  Name:

  	
  WENDI D. REED

  
	
   

  	
   

  	
  Title:

  	
  VICE PRESIDENT

  
					

 

 

 

	
  

  	
  MEGA INTERNATIONAL COMMERICAL BANK,

  CO., LTD. LOS ANGELES BRANCH,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael C. C. Juang

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael C. C. Juang

  
	
   

  	
   

  	
  Title:

  	
  VP & Deputy GM

  
					

 

 

 

	
  

  	
  THE CHIBA BANK, LTD., NEW YORK BRANCH

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Morio
  Tsumita

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Morio Tsumita

  
	
   

  	
   

  	
  Title:

  	
  General Manager

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]