Document:

Exhibit 10.1

 

EXECUTION COPY

 

AGREEMENT AND PLAN OF MERGER

 

Dated as of October 6, 2005

 

among

 

CRIIMI MAE INC.,

 

CDP CAPITAL-FINANCING INC.

 

and

 

CADIM W.F. CO.

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I.

  	
  THE MERGER

  	
   

  
	
  Section 1.1

  	
  The Merger

  	
   

  
	
  Section 1.2

  	
  Effective Time of the Merger

  	
   

  
	
  Section 1.3

  	
  Closing

  	
   

  
	
  Section 1.4

  	
  Effects of the Merger

  	
   

  
	
  Section 1.5

  	
  Articles of Incorporation
  and By-Laws

  	
   

  
	
  Section 1.6

  	
  Directors and Officers

  	
   

  
	
  Section 1.7

  	
  Conversion of Shares

  	
   

  
	
  Section 1.8

  	
  Conversion of Sub’s Capital
  Stock

  	
   

  
	
  Section 1.9

  	
  Stock Options and Restricted
  Stock Units

  	
   

  
	
  Section 1.10

  	
  Payment for Shares

  	
   

  
	
  Section 1.11

  	
  Further Assurances

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II.

  	
  REPRESENTATIONS AND
  WARRANTIES OF THE COMPANY

  	
   

  
	
  Section 2.1

  	
  Organization, Qualification,
  Corporate Power and Authority

  	
   

  
	
  Section 2.2

  	
  Capitalization

  	
   

  
	
  Section 2.3

  	
  Noncontravention

  	
   

  
	
  Section 2.4

  	
  Business Entities

  	
   

  
	
  Section 2.5

  	
  Financial Statements

  	
   

  
	
  Section 2.6

  	
  Absence of Certain Changes

  	
   

  
	
  Section 2.7

  	
  Undisclosed Liabilities

  	
   

  
	
  Section 2.8

  	
  Tax Matters

  	
   

  
	
  Section 2.9

  	
  Tangible Assets

  	
   

  
	
  Section 2.10

  	
  Owned Real Property

  	
   

  
	
  Section 2.11

  	
  Intellectual Property

  	
   

  
	
  Section 2.12

  	
  Real Property Leases

  	
   

  
	
  Section 2.13

  	
  Contracts

  	
   

  
	
  Section 2.14

  	
  Licenses and Authorizations

  	
   

  
	
  Section 2.15

  	
  Litigation

  	
   

  
	
  Section 2.16

  	
  Employees

  	
   

  
	
  Section 2.17

  	
  State Takeover Statutes;
  Charter Ownership Limitations; Rights Agreement

  	
   

  
	
  Section 2.18

  	
  Employee Benefits

  	
   

  
	
  Section 2.19

  	
  Environmental Matters

  	
   

  
	
  Section 2.20

  	
  Investments

  	
   

  
	
  Section 2.21

  	
  Legal Compliance

  	
   

  
	
  Section 2.22

  	
  Company SEC Reports

  	
   

  
	
  Section 2.23

  	
  Transactions with Affiliates

  	
   

  
	
  Section 2.24

  	
  Insurance

  	
   

  
	
  Section 2.25

  	
  Investment
  Company Act of 1940

  	
   

  
	
  Section 2.26

  	
  Opinion of
  Financial Advisor

  	
   

  
				

 

i

 

	
  Section 2.27

  	
  Required
  Vote of Company Stockholders

  	
   

  
	
  Section 2.28

  	
  Certain
  Information

  	
   

  
	
  Section 2.29

  	
  Brokers

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III.

  	
  REPRESENTATIONS
  AND WARRANTIES OF PARENT AND SUB

  	
   

  
	
  Section 3.1

  	
  Organization,
  Corporate Power and Authority

  	
   

  
	
  Section 3.2

  	
  Noncontravention

  	
   

  
	
  Section 3.3

  	
  Availability
  of Funds

  	
   

  
	
  Section 3.4

  	
  Certain
  Information

  	
   

  
	
  Section 3.5

  	
  Investigation

  	
   

  
	
  Section 3.6

  	
  Brokers

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV.

  	
  ADDITIONAL
  AGREEMENTS

  	
   

  
	
  Section 4.1

  	
  Preparation
  of the Proxy Statement

  	
   

  
	
  Section 4.2

  	
  Stockholder
  Approvals

  	
   

  
	
  Section 4.3

  	
  Conditions
  to Merger

  	
   

  
	
  Section 4.4

  	
  Employee Benefits
  and Other Matters

  	
   

  
	
  Section 4.5

  	
  Indemnification;
  Directors’ and Officers’ Insurance

  	
   

  
	
  Section 4.6

  	
  Reasonable
  Efforts

  	
   

  
	
  Section 4.7

  	
  Conduct of
  Company’s Business

  	
   

  
	
  Section 4.8

  	
  Conduct of
  Parent and Sub

  	
   

  
	
  Section 4.9

  	
  Public
  Announcements

  	
   

  
	
  Section 4.10

  	
  No Solicitation

  	
   

  
	
  Section 4.11

  	
  Fees and Expenses

  	
   

  
	
  Section 4.12

  	
  State
  Takeover Laws

  	
   

  
	
  Section 4.13

  	
  Rights
  Agreement

  	
   

  
	
  Section 4.14

  	
  Certain Tax
  Matters

  	
   

  
	
  Section 4.15

  	
  Observer
  Rights

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V.

  	
  CONDITIONS

  	
   

  
	
  Section 5.1

  	
  Conditions
  to each Party’s Obligation to Effect the Merger

  	
   

  
	
  Section 5.2

  	
  Conditions
  to the Company’s Obligations

  	
   

  
	
  Section 5.3

  	
  Conditions
  to the Parent’s and Sub’s Obligations

  	
   

  
	
  Section 5.4

  	
  Frustration
  of Closing Conditions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI.

  	
  GENERAL

  	
   

  
	
  Section 6.1

  	
  Termination

  	
   

  
	
  Section 6.2

  	
  Non-Survival
  of Representations and Warranties

  	
   

  
	
  Section 6.3

  	
  Notice

  	
   

  
	
  Section 6.4

  	
  Complete
  Agreement; No Third-Party Beneficiaries

  	
   

  
	
  Section 6.5

  	
  GOVERNING
  LAW

  	
   

  
	
  Section 6.6

  	
  No
  Assignment

  	
   

  
	
  Section 6.7

  	
  Headings

  	
   

  
	
  Section 6.8

  	
  Counterparts

  	
   

  
	
  Section 6.9

  	
  Interpretation

  	
   

  
	
  Section 6.10

  	
  Remedies;
  Waiver

  	
   

  
				

 

ii

 

	
  Section 6.11

  	
  Confidentiality

  	
   

  
	
  Section 6.12

  	
  Severability

  	
   

  
	
  Section 6.13

  	
  Amendment;
  Waiver

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  Form of
  Articles of Merger

  	
   

  

 

iii

 

This AGREEMENT AND PLAN OF MERGER (this “Agreement”)
dated as of October 6, 2005, among CDP CAPITAL-FINANCING INC., a Quebec
charter corporation (“Parent”), CADIM W.F. CO., a newly-formed Maryland
corporation (“Sub”) and an indirect, wholly-owned subsidiary of Parent,
and CRIIMI MAE Inc., a Maryland corporation (the “Company”).

 

WHEREAS the respective Boards of Directors of Parent,
Sub and the Company deem it advisable to consummate, and have approved, the
transaction provided for herein pursuant to which Sub will merge with and into
the Company and the Company will become an indirect wholly-owned subsidiary of
Parent and a direct wholly-owned subsidiary of Cadim White Flint Co., a
Maryland corporation;

 

WHEREAS to effect such transaction, the respective
Boards of Directors of Parent, Sub and the Company have approved the merger of
the Company and Sub (the “Merger”), upon the terms and subject to the
conditions of this Agreement, whereby the issued and outstanding shares of
common stock, par value $0.01 per share, of the Company (the “Company Common
Stock”), and the associated Rights (as defined in Section 2.2(a)), not
owned directly or through a Subsidiary (as defined in Section 1.7(a)) by
the Company will be converted into the right to receive $20.00 per share in
cash, without interest thereon;

 

WHEREAS BREF ONE, LLC—Series A, a Delaware
limited liability company (“BREF ONE”), a record and beneficial holder
of Shares (as defined in Section 1.7(a)) as
of the date hereof, has entered into a Voting Agreement dated as of the date
hereof (the “Voting Agreement”), with Parent, pursuant to which it has
agreed to vote in favor of the Merger and has granted a proxy to Parent in
connection therewith;

 

WHEREAS BREF ONE, a holder of the Company’s
outstanding 15% Senior Subordinated Notes due 2006, has delivered, concurrently
with the execution of this Agreement, an agreement (the “Termination
Agreement”) terminating certain of such holder’s rights under the Senior
Subordinated Secured Note Agreement and the Non-Competition Agreement, each
dated as of January 13, 2003, by and between the Company and BREF ONE (as
an assignee of Brascan Real Estate Finance Fund I, L.P., a Delaware limited
partnership), which termination is effective only upon the Effective Time (as defined in Section 1.2); and

 

WHEREAS Parent, Sub and the Company desire to make
certain representations, warranties and agreements in connection with the
Merger and also to prescribe various conditions to the Merger.

 

NOW, THEREFORE, in consideration of the premises and
the representations, warranties and agreements herein contained, the parties
hereto hereby agree as follows:

 

ARTICLE I.

THE MERGER

 

Section 1.1            The
Merger.  Upon the terms and
subject to the conditions of this Agreement and the articles of merger in the
form attached hereto as Exhibit A (the “Articles of Merger”),
and in accordance with the Maryland General Corporation Law (the “MGCL”),
Sub

 

1

 

shall be merged
with and into the Company (Sub and the Company are sometimes referred to herein
as the “Constituent Corporations”) at the Effective Time.  At the Effective Time, the separate corporate
existence of Sub shall cease and the Company shall continue under its present
name as the surviving corporation (the “Surviving Corporation”) and
shall succeed to and assume all the rights and obligations of Sub in accordance
with the MGCL.

 

Section 1.2            Effective
Time of the Merger.  Subject to
the provisions of this Agreement, the Constituent Corporations shall cause the
Articles of Merger to be duly prepared and executed and filed with the State
Department of Assessment and Taxation of the State of Maryland (the “Department”),
as provided in Section 3-107 of the MGCL and consistent with this
Agreement, as soon as practicable on or after the Closing Date (as defined in Section 1.3).  The Merger shall become effective upon the
acceptance of the Articles of Merger for record by the Department, unless a
later time is specified in the Articles of Merger (the “Effective Time”).

 

Section 1.3            Closing.  The closing of the Merger (the “Closing”)
will take place at 10:00 a.m., New York City time, on a date to be
specified by the parties, which shall be no later than the second business day
following the satisfaction or waiver of all the conditions set forth in Article V
(the “Closing Date”), at the offices of Sidley Austin Brown &
Wood LLP, 787 Seventh Avenue, New York, New York 10019, unless another date or
place is agreed to in writing by the parties hereto.

 

Section 1.4            Effects
of the Merger.  The Merger shall
have the effects set forth in Section 3-114 of the MGCL.

 

Section 1.5            Articles
of Incorporation and By-Laws.

 

(a)           At
the Effective Time and by virtue of the Merger, the charter of the Surviving
Corporation will be amended and restated in its entirety to be substantially
identical to the charter of Sub, as in effect on the date hereof, except that (i) the
applicable article of such charter will read as follows:  “The name of the Corporation shall be “CRIIMI
MAE Inc.” and (ii) the capitalization of the Surviving Corporation set
forth therein shall include the par value, dividend rights, preferences,
redemption rights, conversion rights (including pursuant to Section 10(f)(ix) of
Exhibit A to the Articles of Amendment and Restatement of the Company),
voting powers and other rights of the Series B Preferred Stock (as defined
in Section 2.2(a)), each of which shall be as set forth in Exhibit A
to the Articles of Amendment and Restatement of the Company.

 

(b)           Immediately
after the Effective Time, the Surviving Corporation shall take such steps as
are necessary to amend and restate in their entirety the bylaws of the
Surviving Corporation in order that they will be substantially identical to the
bylaws of Sub as in effect on the date hereof (it being understood that such
bylaws shall include provisions with respect to the indemnification of
directors and officers as contemplated by the first sentence of Section 4.5).

 

Section 1.6            Directors
and Officers.  The directors and
officers of Sub at the Effective Time shall be the directors and officers, respectively,
of the Surviving Corporation, until the

 

2

 

earlier of their
resignation or removal or until their respective successors are duly elected
and qualified or appointed, as the case may be.

 

Section 1.7            Conversion
of Shares.

 

(a)           Each
share of the Company Common Stock (a “Share”) issued and outstanding
immediately prior to the Effective Time (other than any Shares held by any
Subsidiary of the Company), together with the associated Right, shall, at the
Effective Time, by virtue of the Merger and without any action on the part of
the Company, Parent, Sub or the holder thereof, be cancelled and extinguished
and automatically converted into the right to receive $20.00 in cash (the “Cash
Amount”), payable to the holder of the certificate formerly representing
such Share, without interest thereon, upon the surrender thereof in accordance
herewith and with the Articles of Merger at any time after the Effective
Time.  As used in this Agreement, a “Subsidiary”
of a Person (as defined in Section 2.11(a)) means any corporation,
partnership, limited liability company, joint venture, association, trust or
other entity of which such Person (either alone or through or together with any
other Subsidiary of such Person) (x) owns, directly or indirectly, more
than 50% of the stock or other equity interests the holders of which are
generally entitled to vote for the election of the board of directors or other
governing body of such corporation, partnership, limited liability company,
joint venture, association or other entity or (y) is a general partner,
trustee or other Person performing similar function.

 

(b)           Each
Share held by any Subsidiary of the Company, if any (together, in each case,
with the associated Right), shall, at the Effective Time, by virtue of the
Merger and without any action on the part of the Company, Parent, Sub or the
holder thereof, be cancelled and extinguished and cease to exist and no payment
shall be made with respect thereto.

 

(c)           No
share of Series B Preferred Stock shall be converted into cash, securities
or other property as a result of the Merger; all shares of Series B
Preferred Stock outstanding immediately preceding the Effective Time shall
remain outstanding immediately following the Effective Time as shares of
capital stock of the Surviving Corporation without any change or modification
to any right, preference, privilege or voting power of any such shares or the
holders thereof.

 

Section 1.8            Conversion
of Sub’s Capital Stock.  Each
share of common stock, par value $0.01 per share, of Sub issued and outstanding
immediately prior to the Effective Time shall, at the Effective Time, by virtue
of the Merger and without any action on the part of the Company, Parent or Sub,
be converted into and become one share of common stock, par value $0.01 per
share, of the Surviving Corporation.

 

Section 1.9            Stock
Options and Restricted Stock.

 

(a)           At
the Effective Time, the Company shall use all reasonable efforts to take all
necessary action, including all reasonable efforts to obtain the consent of the
individual option holders, if necessary, to (i) terminate the Company’s
2001 Stock Incentive Plan, as amended, the Second Amended and Restated Stock
Option Plan for Key Employees of the Company and the Company’s 1996
Non-Employee Director Stock Plan (the “Company

 

3

 

Stock Option Plans”)
and (ii) to cancel, at the Effective Time, each option to acquire the
Company Common Stock (the “Company Stock Options”) outstanding and
unexercised as of such date, whether or not exercisable and whether or not
vested, under the Company’s Stock Option Plans. 
Each holder of a Company Stock Option outstanding and unexercised
immediately prior to the Effective Time, whether or not exercisable and whether
or not vested, shall be entitled to receive from the Surviving Corporation
immediately after the Effective Time, in exchange for the cancellation of
Company Stock Option, a lump sum cash payment, less applicable withholding
taxes, equal to the excess, if any, of (x) the product of the Cash Amount
multiplied by the number of shares of the Company Common Stock subject to the
Company Stock Option over (y) the aggregate exercise price for such
Company Stock Option.  The Company shall
take all action necessary (i) to approve the disposition of the Company
Stock Options in connection with the transactions contemplated by this
Agreement to the extent necessary to exempt such dispositions and acquisitions
under Rule 16b-3 of the Exchange Act (as defined in Section 2.3) and (ii) to
give effect to the transactions contemplated by this Section 1.9(a).

 

(b)           At
the Effective Time, the Company shall take all necessary action (i) to
terminate the Company’s Deferred Compensation Plan, as amended (the “Deferred
Compensation Plan”), and (ii) to cause the Surviving Corporation to
pay each participant in the Deferred Compensation Plan a lump sum cash payment,
less applicable withholding taxes, equal to the amount of such participant’s
account balance under the Deferred Compensation Plan or, if later, as soon as
such cash payment can be made under the terms of the Deferred Compensation Plan
without triggering the additional tax and interest under Section 409A(a)(1)(B) of
the Code (as defined in Section 4.14(a)).

 

(c)           At
the Effective Time, each restricted or otherwise unvested Share or Company
Stock Option outstanding immediately prior to the Effective Time shall, as
provided in the Company Employee Benefit Plans (as defined in Section 2.18(a)),
automatically become fully vested and eligible for payment as set forth in Section 1.10
to the extent not otherwise cancelled and paid for pursuant to Section 1.9(a) (in
the case of Company Stock Options).

 

Section 1.10         Payment
for Shares.

 

(a)           Prior
to the Effective Time, the Company shall designate Registrar and Transfer
Company or another bank or trust company reasonably acceptable to Sub to act as
paying agent (the “Paying Agent”) in connection with the Merger (which
bank or trust company shall agree in writing to comply with the provisions of
this Section 1.10 applicable to it). 
At the Closing, the Surviving Corporation (with funds obtained from
Parent) or Parent shall deposit in trust (which trust shall be for the benefit
of the stockholders of the Company) with the Paying Agent an amount (the “Payment
Fund”) in immediately available funds equal to the sum of (x) the product
of (i) the sum of (A) the aggregate number of Shares outstanding
immediately prior to the Effective Time (other than Shares held by any Subsidiary
of the Company) plus (B) the aggregate number of the Company’s restricted
stock units outstanding and (ii) the Cash Amount and (y) the excess, if
any, of (i) the product of the Cash Amount multiplied by the aggregate
number of Shares underlying Company Stock Options that entitle the holders
thereof to purchase such Shares at a price per share less than the Cash Amount
(to the extent that such Company Stock Options have not been cancelled and paid
for pursuant to Section 1.9(a)) over (ii) the

 

4

 

aggregate exercise
price for such Company Stock Options. 
The Payment Fund shall be invested by the Paying Agent as directed by
the Surviving Corporation (so long as such directions do not impair the rights
of the holders of Shares or the ability of the Paying Agent to make timely
payments as required hereby), in direct obligations of the United States of
America or any state thereof, obligations for which the full faith and credit
of the United States of America or any such state is pledged to provide for the
payment of principal and interest, commercial paper either rated of the highest
quality by Moody’s Investors Service, Inc. or Standard & Poor’s
Corporation or certificates of deposit issued by, or other deposit accounts of,
a commercial bank having at least $1,000,000,000 in capital and surplus, in
each case with a maturity of three months or less.  Any earnings with respect thereto shall be
paid to the Surviving Corporation as and when requested by the Surviving
Corporation.  If at any time the amount
of the Payment Fund shall be less than the amount required to make the payments
contemplated by Section 1.7, the Surviving Corporation shall promptly
deposit in trust with the Paying Agent funds sufficient to make such
payments.  The Paying Agent shall,
pursuant to irrevocable instructions, make the cash payments referred to in Section 1.7
out of the Payment Fund.

 

(b)           Promptly
after the Effective Time, the Paying Agent shall mail to each record holder, as
of the Effective Time, of an outstanding certificate or certificates which
immediately prior to the Effective Time evidenced ownership of a Share or
Shares and the associated Right or Rights (the “Certificates”) a form
letter of transmittal (which shall specify that delivery shall be effected, and
risk of loss and title to the Certificates shall pass, only upon proper
delivery of the Certificates to the Paying Agent) and instructions for use in
effecting the surrender of the Certificates for payment therefor.  Upon surrender to the Paying Agent of a
Certificate, together with such letter of transmittal duly executed, and any
other required documents, the holder of such Certificate shall receive as
promptly as practicable in exchange therefor cash in an amount equal to the
product of the number of Shares represented by such Certificate and the Cash
Amount, and such Certificate shall forthwith be cancelled.  No interest will be paid or accrued on the
cash payable upon the surrender of the Certificates.  If payment is to be made to a Person other
than the Person in whose name the Certificate surrendered is registered, it
shall be a condition of payment that the Certificate so surrendered shall be
properly endorsed or otherwise in proper form for transfer and that the Person
requesting such payment shall pay any transfer or other taxes required by
reason of the payment to a Person other than the registered holder of the
Certificate surrendered or establish to the satisfaction of the Surviving
Corporation that such tax has been paid or is not applicable.  Until surrendered and exchanged in accordance
with the provisions of this Section 1.10, each Certificate (other than any
Certificates representing Shares and the associated Rights held by any
Subsidiary of the Company) shall represent for all purposes only the right to
receive the consideration set forth in Section 1.7 without any interest
thereon, and until such surrender and exchange no cash shall be delivered to
the holder of such outstanding Certificate in respect thereof.

 

(c)           At
any time following the date that is six months after the Effective Time, the
Surviving Corporation shall be entitled to require the Paying Agent  to deliver to it any funds (including the
remaining portion of the Payment Fund and any interest received with respect
thereto) that are held by the Paying Agent that have not been disbursed to
holders of Certificates, and thereafter such holders shall be entitled to look
only to the Surviving Corporation (subject to abandoned property, escheat and
other similar laws) for distribution of the consideration provided in Section 1.7,
upon due surrender of their Certificates.

 

5

 

Notwithstanding
the foregoing, none of Parent, the Surviving Corporation nor the Paying Agent
shall be liable to a holder of a Certificate for the consideration provided in Section 1.7
properly delivered to a public official pursuant to any applicable abandoned
property, escheat or similar law.

 

(d)           From
and after the Effective Time, the holders of Certificates evidencing ownership
of Shares and associated Rights outstanding immediately prior to the Effective
Time shall cease to have any rights with respect to such Shares and associated
Rights, except as otherwise provided for herein or by applicable law.

 

(e)           After
the Effective Time there shall be no transfers on the stock transfer books of
the Company of the Shares that were outstanding immediately prior to the
Effective Time.  If, after the Effective
Time, Certificates are presented to the Surviving Corporation, they shall be
cancelled and exchanged for the consideration provided in Section 1.7 in
accordance with the procedures set forth in this Section 1.10.

 

(f)            In
the event that any Certificate shall have been lost, stolen or destroyed, upon
the making of an affidavit of that fact by the Person claiming such Certificate
to be lost, stolen or destroyed and subject to such other conditions as the
Board of Directors of the Surviving Corporation may impose, the Surviving
Corporation shall pay in exchange for such lost, stolen or destroyed
Certificate the Cash Amount deliverable in respect thereof as determined in
accordance herewith.  When authorizing
such payment of the Cash Amount in exchange therefor, the Board of Directors of
the Surviving Corporation or the Paying Agent may, in its discretion and as a
condition precedent to the issuance thereof, require the owner of such lost,
stolen or destroyed Certificate to give the Surviving Corporation a bond in
such sum as it may direct as indemnity against any claim that may be made
against the Surviving Corporation with respect to the Certificate alleged to
have been lost, stolen or destroyed.

 

(g)           No
interest shall be paid or accrue on any portion of the Cash Amount at any time.

 

(h)           Parent
and the Paying Agent shall be entitled to deduct and withhold from the merger
consideration payable under this Agreement such amounts as may be required to
be deducted or withheld therefrom under (i) the Code or (ii) any
applicable, state, local or foreign Tax (as defined in Section 4.14(a))
laws.  To the extent that amounts are so
deducted and withheld, such amounts shall be timely paid to the appropriate
taxing authority and shall be treated for all purposes under this Agreement as
having been paid to the Person in respect of which such deduction and
withholding was made.

 

Section 1.11         Further
Assurances.  If at any time after
the Effective Time the Surviving Corporation shall consider or be advised that
any deeds, bills of sale, assignments or assurances or any other acts or things
are necessary, desirable or proper (i) to vest, perfect or confirm, of
record or otherwise, in the Surviving Corporation its right, title or interest
in, to or under any of the rights, privileges, powers, franchises, properties
or assets of either Constituent Corporation, or (ii) otherwise to carry
out the purposes of this Agreement, the Surviving Corporation and its proper
officers and directors or their designees shall be authorized to execute and
deliver, in the name and on behalf of either of the Constituent Corporations,
all such deeds,

 

6

 

bills of sale,
assignments and assurances and to do, in the name and on behalf of either
Constituent Corporation, all such other acts and things as may be necessary,
desirable or proper to vest, perfect or confirm the Surviving Corporation’s
right, title or interest in, to or under any of the rights, privileges, powers,
franchises, properties or assets of such Constituent Corporation and otherwise
to carry out the purposes of this Agreement.

 

ARTICLE II.

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company represents and warrants to Parent and Sub,
except in each case as specifically set forth in the letter dated the date
hereof and delivered on the date hereof from the Company to Parent and Sub,
which letter relates to this Agreement, is designated therein as the Company
Letter (the “Company Letter”), and identifies the Section (or, if
applicable, subsection) to which the exception relates (provided that any
disclosure in the Company Letter relating to one Section or subsection shall
also apply to other Sections and subsections to the extent that it is
reasonably apparent that such disclosure would also apply to or qualify such
other Sections or subsections).

 

Section 2.1            Organization,
Qualification, Corporate Power and Authority.

 

(a)           Each
of the Company and each Subsidiary of the Company is a corporation, limited
partnership or other legal entity duly organized, validly existing and in good
standing under the laws of its jurisdiction of incorporation or
organization.  Each of the Company and
each Subsidiary of the Company is duly qualified to conduct business and is in
good standing under the laws of each jurisdiction in which the nature of its
businesses or the ownership or leasing of its properties requires such
qualification, other than where the failure to be so qualified would not
individually or in the aggregate reasonably be expected to have a Material
Adverse Effect (as defined hereinafter); each such jurisdiction that requires
such qualification is set forth in Schedule 2.1(a) of the
Company Letter.  Each of the Company and
each of its Subsidiaries has all requisite power and authority to carry on the
businesses in which it is engaged and to own and use the properties owned and
used by it.  Each of the Company and each
of its Subsidiaries has furnished or made available to Parent a copy of its
charter, by-laws or other similar organizational documents, each as amended and
as in effect on the date of this Agreement. 
Except as set forth in Schedule 2.1(a) of the Company
Letter, each of the Company and its Subsidiaries has at all times complied
with, and is not in default under or in violation of, any provision of its
charter, by-laws or other organizational documents.  Schedule 2.1(a) of the
Company Letter sets forth (A) all Subsidiaries of the Company and their
respective jurisdictions of incorporation or organization and legal form of
entity, (B) each owner and the respective amount of such owner’s equity
interest in each Subsidiary of the Company and (C) a list of each
jurisdiction in which each Subsidiary of the Company is qualified or licensed
to do business and each assumed name, if any, under which each such Subsidiary
conducts business in any jurisdiction.  A
“Material Adverse Effect” means a material adverse effect on (i) the
businesses, assets (including licenses, franchises and other intangible
assets), financial condition or net interest margin (other than effects on net
interest margin resulting from amortization charges or non-cash adjustments) of
the Company and its Subsidiaries, taken as a whole (after taking into account
any insurance recoveries reasonably expected in respect thereof), or (ii) the
ability of the

 

7

 

Company timely to
consummate the transactions contemplated hereby or by the Articles of Merger,
except where such effect results from (v) defaults on or in connection
with, or the failure of any master servicer or similar administrator to advance
funds or make payments in connection with, the securities listed on Schedule 2.1(a)(v) of
the Company Letter, (w) the impact or aftermath of Hurricanes Katrina
and/or Rita, (x) changes in (A) prevailing interest rates or credit
spreads, (B) prevailing economic or market conditions, (C) Laws (as
defined in Section 2.3) or interpretations thereof or (D) in GAAP (as
defined in Section 2.5), in any such case which do not have a materially
disproportionate effect (relative to other industry participants) on the
Company, (y) changes in national or international political or social
conditions, including the engagement by the United States of America in
hostilities, whether or not pursuant to the declaration of a national emergency
or war, or the occurrence of any military or terrorist attack upon or within
the United States of America or any of its territories, possessions or
diplomatic or consular offices or upon any military installation, equipment or
personnel of the United States of America, which do not have a materially
disproportionate effect (relative to other industry participants) on the
Company or (z) the announcement of the identity of Parent or the
announcement or pendency of the transactions contemplated by this Agreement,
including any expenses incurred in connection herewith.

 

(b)           (1) The
Company has all requisite power and authority to execute and deliver this
Agreement and the Articles of Merger, (2) this Agreement has been and at
the Closing the Articles of Merger will be (i) duly and validly executed
and delivered by the Company and (ii) duly and validly authorized by all
necessary corporate action on the part of the Company, (3) this Agreement
constitutes the valid and binding obligation of the Company enforceable against
the Company in accordance with its terms, subject as to enforceability to
bankruptcy, insolvency, reorganization, fraudulent conveyance and similar laws
relating to creditors’ rights and to general principles of equity and (4) the
Board of Directors of the Company has declared the Merger and the other
transactions contemplated by this Agreement advisable and in the best interests
of its stockholders and directed that it be submitted for consideration at a
meeting of the Company’s stockholders entitled to vote thereon.

 

Section 2.2            Capitalization.

 

(a)           At
the date hereof, the authorized capital stock of the Company consists of
300,000,000 shares of the Company Common Stock and 75,000,000 shares of
preferred stock, par value $0.01 per share (the “Preferred Stock”; and
together with the Company Common Stock, the “Capital Stock”), of which
3,000,000 shares have been designated “Series B Cumulative Convertible
Preferred Stock” (the “Series B Preferred Stock”) and 45,000 shares
have been designated “Series H Junior Preferred Stock” (the “Series H
Preferred Stock”).  At the date
hereof, 15,612,834 shares of the
Company Common Stock, 2,178,982 shares of Series B Preferred Stock and no
shares of Series H Preferred Stock were issued and outstanding and stock
options to acquire 516,442 shares of the Company Common Stock and 24,630 restricted stock units were
outstanding under the Company Employee Benefit Plans.  All the issued and outstanding shares of
Capital Stock are validly issued, fully paid and nonassessable and free of
preemptive rights.  Other than (i) as
set forth above, (ii) the rights to purchase shares of Series H
Preferred Stock (the “Rights”), issued pursuant to the Rights Agreement
dated as of January 23, 2002, between the Company and Registrar and Transfer
Company, as Rights Agent, as amended (the “Rights Agreement”), (iii) the
Warrant dated January 23, 2003 to purchase up to 336,835

 

8

 

shares of the
Company Common Stock (the “Warrant”), and (iv) as set forth in Schedule 2.2(a) of
the Company Letter, as of the date hereof, there are no shares of Capital Stock
issued or outstanding, no outstanding options, warrants or rights to acquire,
or other securities convertible into, Capital Stock, and no agreements or
commitments obligating the Company to issue, sell or acquire any shares of
Capital Stock.  Schedule 2.2(a) of
the Company Letter also sets forth as of 
September 27, 2005 the names and addresses of the record holders of
the Series B Preferred Stock, including, in the case of commercial
depositories or their nominees holding Series B Preferred Stock, the names
and addresses of the participants in such depositories for which the Series B
Preferred Stock is held.

 

(b)           Except
as disclosed in Schedule 2.2(b) of the Company Letter, all the
outstanding shares of capital stock of each of the Company’s Subsidiaries are
beneficially owned by the Company, directly or indirectly, free and clear of
any restrictions on transfer (other than restrictions under the Securities Act
of 1933, as amended (together with the rules and regulations promulgated
thereunder, the “Securities Act”), and state or foreign securities laws)
or Liens (as hereinafter defined) and all such shares are duly authorized,
validly issued, fully paid, nonassessable and free of preemptive rights.  “Liens” means security interests,
liens, claims, pledges, mortgages, options, rights of first refusal,
agreements, limitations on voting rights, charges, easements, servitudes,
encumbrances and other restrictions of any nature whatsoever.

 

(c)           Except
as disclosed in Schedule 2.2(c) of the Company Letter, (i) there
are no voting trusts, proxies or other agreements or understandings to which
the Company or any of its Subsidiaries is a party or by which the Company or
any of its Subsidiaries is bound with respect to the voting of the capital
stock of the Company or any of its Subsidiaries or, to the Knowledge of the
Company (as hereinafter defined), any other such trusts, proxies, agreements or
understandings affecting the Company or any of its Subsidiaries and (ii) none
of the Company and its Subsidiaries is required to redeem, repurchase or
otherwise acquire shares of capital stock or debt securities of the Company or
any of its Subsidiaries as a result of the transactions contemplated by this
Agreement or the Articles of Merger.  “Knowledge
of the Company” means the actual knowledge of any of the Persons identified
in Schedule 2.2(c) of the Company Letter.

 

Section 2.3            Noncontravention.  Except for the applicable requirements of the
Securities Act, the Securities Exchange Act of 1934, as amended (together with
the rules and regulations promulgated thereunder, the “Exchange Act”),
any applicable state and foreign securities laws, the New York Stock Exchange, Inc.
(the “NYSE”) and the MGCL, or as set forth in Schedule 2.3
of the Company Letter, none of the execution and delivery of this Agreement or
the Articles of Merger by the Company or the consummation of the transactions
contemplated hereby or thereby will (a) conflict with or violate any
provision of the charter, by-laws or similar organizational documents of the
Company or any of its Subsidiaries; (b) require on the part of the Company
or any of its Subsidiaries any filing with, or any permit, authorization, consent
or approval of, any domestic (federal or state), foreign or supranational
court, administrative agency or commission or other governmental or regulatory
body, agency, authority or tribunal (each a “Governmental Entity”),
except where the failure to make such filing or obtain such permit,
authorization, consent or approval would not individually or in the aggregate
reasonably be expected to have a Material Adverse Effect; (c) violate,
result in a breach of, constitute (with or without due notice or lapse of time
or both) a default under, result in the acceleration of, create in

 

9

 

any party any
right to accelerate, terminate or cancel, or require any notice, consent,
approval waiver or exemption under, any contract, lease, sublease, license,
sublicense, franchise, permit, indenture, agreement or mortgage for borrowed
money, instrument of indebtedness, Lien or other arrangement to which the
Company or any of its Subsidiaries is a party or by which the Company or any of
its Subsidiaries is bound or to which any of their respective assets is subject
or any judgment, order, writ, injunction or decree (whether temporary,
preliminary or permanent) of any Governmental Entity (each an “Order”),
statute, rule, regulation, notice, law or ordinance of any Governmental Entity
(each a “Law”) applicable to the Company or any of its Subsidiaries or
any of their respective properties or assets other than, such conflicts,
violations, breaches, defaults, accelerations, terminations, cancellations,
notices, consents or waivers as would not individually or in the aggregate
reasonably be expected to have a Material Adverse Effect; or (d) result in
the imposition of any Lien upon any material assets of the Company or any of
its Subsidiaries, which Lien would materially detract from the value or
materially interfere with the use of such assets.

 

Section 2.4            Business
Entities.

 

(a)           Except
as set forth on Schedule 2.4(a) of the Company Letter and
except for the Company’s Subsidiaries, neither the Company nor any of its
Subsidiaries, directly or indirectly, owns any equity interest or any security
convertible into, or exchangeable for, an equity interest in any corporation,
partnership, limited liability company, joint venture or other form of business
association.  Each of the entities listed
on Schedule 2.4(a) of the Company Letter is referred to as a “Company
Business Entity”.  All the issued and
outstanding equity interests of each Company Business Entity that are owned by
the Company or any of its Subsidiaries are duly authorized, validly issued,
fully paid, nonassessable and free of preemptive rights.  Schedule 2.4(a) of the
Company Letter sets forth the amount of the equity interest owned by the
Company or any of its Subsidiaries in each Company Business Entity and, to the
Knowledge of the Company, the percentage amount which such equity interest
represents of the total equity interests of such Company Business Entity.

 

(b)           Except
as set forth on Schedule 2.4(b) of the Company Letter, the
Company Business Entities have not conducted any operations, trade or
businesses of the Company or any of its Subsidiaries since January 1,
2004, do not own any Company Authorizations (as defined in Section 2.14(a))
and do not own any assets necessary for the conduct of the businesses of the
Company or any of its Subsidiaries as currently conducted.

 

(c)           All
the issued and outstanding equity interests of each Company Business Entity are
duly authorized, validly issued, fully paid, nonassessable and free of
preemptive rights.  All equity interests
of each Company Business Entity that are held of record or owned beneficially
by the Company or a Subsidiary of the Company are held or owned free and clear
of any restrictions on transfer (other than restrictions under the Securities
Act or state or foreign securities law or partnership constituent documents),
claims, Liens, options, warrants, rights, contracts or commitments.

 

Section 2.5            Financial
Statements.  The Company has
previously provided or has made available to Parent the audited consolidated
balance sheets of the Company as of December 31, 2003 and December 31,
2004 (the latter date, the “Company Balance Sheet

 

10

 

Date”),
the audited consolidated statements of income and changes in stockholders’
equity and cash flows of the Company for the years ended December 31, 2003
and December 31, 2004 and the unaudited consolidated balance sheet of the
Company as of June 30, 2005 and the unaudited consolidated statements of
income and changes in stockholders’ equity and cash flows of the Company for
the six months ended June 30, 2005. 
Such financial statements (i) comply as to form in all material
respects with applicable accounting requirements and the published rules and
regulations of the U.S. Securities and Exchange Commission (the “SEC”)
with respect thereto; (ii) except as set forth therein (including in the
notes thereto), have been prepared in accordance with United States generally
accepted accounting principles applied on a consistent basis throughout the
periods covered thereby (“GAAP”); (iii) fairly present the
consolidated financial condition, results of operations and cash flows of the
Company as of the respective dates thereof and for the periods referred to
therein; and (iv) are consistent with the books and records of the
Company.

 

Section 2.6            Absence
of Certain Changes.  Other than
as set forth on Schedule 2.6 of the Company Letter and except as
expressly and specifically set forth in the Company SEC Reports (as defined in Section 2.22(a))
filed by the Company since January 1, 2005 and publicly available prior to
the date of this Agreement, from the Company Balance Sheet Date through the
date of this Agreement, (a) there has not been any Material Adverse
Effect, nor have there occurred any changes, events or developments which,
individually or in the aggregate, would reasonably be expected to have a
Material Adverse Effect, (b) the Company and its Subsidiaries have
conducted their businesses in the Ordinary Course (as hereinafter defined) and (c) none
of the Company and its Subsidiaries has taken any action that would be
prohibited by Section 4.7 if taken from and after the date of this
Agreement.  “Ordinary Course”
means (i) in the usual, regular and ordinary course of business of the
Company and its Subsidiaries consistent with past practice or (ii) as
contemplated by this Agreement.

 

Section 2.7            Undisclosed
Liabilities.  Other than as set
forth on Schedule 2.7 of the Company Letter and except as expressly
and specifically set forth in the Company SEC Reports filed by the Company
since January 1, 2005 and publicly available prior to the date of this
Agreement, none of the Company and its Subsidiaries has any liability (whether
known or unknown, whether absolute or contingent, whether liquidated or
unliquidated, whether due or to become due), except for the following: (a) liabilities
shown or reserved for on the Company Balance Sheet, (b) liabilities that
have arisen since the Company Balance Sheet Date in the Ordinary Course, (c) liabilities
not required by GAAP to be reflected on the Company’s financial statements and
that in the aggregate would not reasonably be expected to have a Material
Adverse Effect and (d) liabilities contemplated by this Agreement.

 

Section 2.8            Tax
Matters.

 

(a)           Except
as set forth on Schedule 2.8(a) of the Company Letter:

 

(i)            the
Company and each Subsidiary, as the case may be, has filed all Tax Returns (as
defined in Section 4.14(a)) required to have been filed by it on or before
the Closing Date and such Tax Returns are true, correct and complete in all
material respects;

 

11

 

(ii)           all Taxes
due and owing or reserved, whether or not shown as due on any Tax Return, have
been timely paid;

 

(iii)          the
Company and each of its Subsidiaries have withheld and paid all Taxes required
to have been withheld and paid in connection with any amounts paid or owing to
any employee, independent contractor, creditor, stockholder, or other third party;

 

(iv)          neither the
Company nor any Subsidiary has waived in writing any statute of limitations in
respect of Taxes of the Company or such Subsidiary which waiver is currently in
effect and no deficiency with respect to any Taxes has been proposed, asserted
or assessed against the Company or any of its Subsidiaries;

 

(v)           the Tax
Returns referred to in clause (i) relating to U.S. federal and state
income Taxes have not been examined by the Internal Revenue Service or the
appropriate state taxing authority;

 

(vi)          no issues
have been raised in writing by the relevant taxing authority in connection with
the Tax Returns referred to in clause (i);

 

(vii)         all
deficiencies asserted or assessments made as a result of any examination of the
Tax Returns referred to in clause (i) by a taxing authority have been paid
in full;

 

(viii)        the
financial statements contained in the Company SEC Report most recently filed
with the SEC and publicly-available prior to the date hereof reflect an
appropriate accrual for all Taxes payable by the Company and its Subsidiaries
through the date of such financial statements;

 

(ix)           there are
no Liens for Taxes (other than for current Taxes not yet due and payable) on
the assets of the Company or any of its Subsidiaries;

 

(x)            to the
Knowledge of the Company, there are no existing claims by any taxing authority
in any jurisdiction in which the Company or any of its Subsidiaries does not
currently file a Tax Return whereby the taxing authority asserts the obligation
of the Company or any of its Subsidiaries to comply with any tax filing
obligation in that jurisdiction;

 

(xi)           neither
the Company nor any of its Subsidiaries has received from any taxing authority
any (A) notice indicating an intent to open an audit or review, (B) a
request for information related to Taxes, or (C) a notice of deficiency or
proposed adjustment related to Taxes;

 

(xii)          neither
the Company nor any Subsidiary has received or is subject to any private letter
ruling or other ruling of a taxing authority specifically applicable to the
Company or any of its Subsidiaries related to Taxes or

 

12

 

has entered into any written or legally binding agreement with a taxing
authority relating to Taxes;

 

(xiii)         the
Company is not a party to any tax sharing agreement or tax allocation agreement
with any other Person or entity; and

 

(xiv)        to
the Knowledge of the Company there has not been any past investigation,
exception or challenge with respect to the validity or the effect on the Company’s
Taxes of any of the Company’s elections for U.S. federal income tax purposes by
any Governmental Entity.

 

(b)           Neither
the Company nor any of its Subsidiaries has any liability for Taxes of any
person (other than the Company and its Subsidiaries) under Treasury Regulation
Sections 1.1502-6 (or any similar provision of state, local, or foreign law),
as a transferee or successor, by contract or otherwise.

 

(c)           The
Company has not been a United States real property holding corporation within
the meaning of Section 897(c)(2) of the Code during the applicable
period specified in Section 897(c)(1)(A)(ii) of the Code.

 

(d)           Neither
the Company nor its Subsidiaries has constituted either a “distributing
corporation” or a “controlled corporation” in a distribution of stock
qualifying for tax-free treatment under Section 355 of the Code (i) in
the two years prior to the date of this Agreement or (ii) in a
distribution which could otherwise constitute part of a “plan” or “series of
related transactions” (within the meaning of Section 355(e) of the
Code) in conjunction with the Merger and the other transactions contemplated by
this Agreement.

 

(e)           Each
of the Company and CBO REIT II, Inc. is a real estate investment trust (“REIT”)
as defined in Section 856(a) of the Code that has qualified as a REIT
for U.S. federal income tax and Maryland state income tax purposes since its
formation.  Each Subsidiary of the
Company, other than CBO REIT II, Inc., and each Subsidiary of CBO REIT II, Inc.,
is either a qualified REIT subsidiary (“QRS”) under Section 856(i) of
the Code, a taxable REIT subsidiary (“TRS”) under Section 856(l) of
the Code or a disregarded entity for U.S. federal income tax purposes.  Schedule 2.8(e) of the
Company Letter sets forth whether each Subsidiary of the Company is a REIT, a
QRS, a TRS or a disregarded entity for U.S. federal income tax purposes.  Neither the Company nor its Subsidiaries
holds any asset the disposition of which would be subject to Treasury Regulations
Section 1.337(d)-5, 1.337(d)-6 or 1.337(d)-7 (or any similar provision of
state or local law).

 

(f)            None
of the Company and CBO REIT II, Inc. has engaged in any prohibited
transactions within the meaning of Section 857(b)(6)(B)(iii) of the
Code.

 

(g)           Based
upon the Company’s Tax Returns as filed, and without making any other
additional representation beyond those specifically made elsewhere in this Section 2.8,
as of December 31, 2004, the Company’s net operating losses and other loss
carryforwards available for U.S. federal income tax purposes were estimated to
be at least $297.5 million.

 

13

 

(h)           As
of the date of this Agreement, the Company does not have any earnings and
profits attributable to the Company or any other corporation in any non-REIT
years within the meaning of Section 857 of the Code.

 

(i)            Schedule 2.8(i) of
the Company Letter is a complete and accurate statement of the adjusted basis
of all the regular interests held by the Company and any of its Subsidiaries as
of June 30, 2005 in “real estate mortgage investment conduits” within the
meaning of Section 860D(a) of the Code.

 

(j)            The
Company has not had any excess inclusion within the meaning of Section 860E
of the Code for any taxable year beginning on or after January 1, 2001, and
ending on or prior to December 31, 2004.

 

(k)           Except
as set forth in Schedule 2.8(k) of the Company Letter, neither the
Company nor any of its Subsidiaries will be required to include any item of
income in, or exclude any item of deduction from, taxable income for any
taxable period (or portion thereof) ending after the Closing Date as a result
of any (i) change in method of accounting for a taxable period ending on
or prior to the Closing Date, (ii) installment sale or open transaction
disposition made on or prior to the Closing, or (iii) prepaid amount
received on or prior to the Closing Date.

 

(l)            Except
as set forth on Schedule 2.8(l), neither the Company nor any of its
Subsidiaries has engaged in any listed or reportable transaction within meaning
of Code Section 6011, 6111 or 6112 or any comparable provision of state or
local law in a jurisdiction where the Company or any of its Subsidiaries file
Tax Returns.

 

Section 2.9            Tangible
Assets.  The Company and its
Subsidiaries own or lease all tangible assets, if any, necessary for the
conduct of their respective businesses as presently conducted.  Each such tangible asset is free from
material defects, has been maintained in accordance with normal industry
practice and is in good operating condition and repair, other than where such
defects or the failures to have been so maintained or to be in such condition
and repair would not individually or in the aggregate reasonably be expected to
have a Material Adverse Effect.

 

Section 2.10         Owned
Real Property.  None of the
Company and its Subsidiaries owns any real property.  

 

Section 2.11         Intellectual
Property.

 

(a)           The
Company and its Subsidiaries own, license or otherwise have the legally
enforceable right to use all patents, trademarks, trade names, service marks,
copyrights, applications for patents, trademarks, trade names, service marks
and copyrights, schematics, technology, know-how, computer software programs or
applications and tangible or intangible proprietary information or material, if
any, material to the operation of their respective businesses as presently
conducted (collectively, “Company Intellectual Property”).  No other Person has any rights to any of the
Company Intellectual Property, and to the Company’s Knowledge no other Person
is infringing, violating or misappropriating any of such Company Intellectual
Property that is used in the businesses of the Company and its Subsidiaries,
other

 

14

 

than such
infringements, violations or misappropriations as would not individually or in
the aggregate reasonably be expected to have a Material Adverse Effect.  “Person” means an individual, a
partnership, a company, a corporation, a limited liability company, an
association, a joint stock company, a trust, a joint venture, an unincorporated
organization or a Governmental Entity or any department, agency or political
subdivision thereof.

 

(b)           The
business, operations and activities of each of the Company and its Subsidiaries
as presently conducted or as conducted at any time within the two years prior
to the date of this Agreement have not materially infringed or violated, or
constituted a material misappropriation of, and do not now materially infringe
or violate, or constitute a material misappropriation of, any intellectual
property rights of any other Person, other than such infringements, violations
or misappropriations as would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect. 
Since January 1, 2003, none of the Company and its Subsidiaries has
received any written or, to the Knowledge of the Company, verbal complaint,
claim or notice alleging any such infringement, violation or misappropriation.

 

(c)           Schedule 2.11(c) of
the Company Letter sets forth each item of Company Intellectual Property (other
than commercially available software generally available to the public at a
license fee of less than $10,000) used by the Company or any of its
Subsidiaries in the operation of its business that is not owned by the Company
or any of its Subsidiaries.  The Company
has delivered or otherwise made available to Parent true and complete copies of
all licenses, sublicenses or other agreements (each as amended to date)
pursuant to which the Company or any of its Subsidiaries uses such Company
Intellectual Property, all of which are set forth in Schedule 2.11(c) of
the Company Letter.

 

Section 2.12         Real
Property Leases.

 

(a)           The
Company has made available to Parent true and complete copies of all real
property leases and subleases of the Company or any Subsidiary of the Company
(each as amended to date) (“Leases”). 
Schedule 2.12(a) of the Company Letter sets forth a
list of all Leases.  None of the Company
and its Subsidiaries, nor, to the Knowledge of the Company, any other party to
any Lease is in material breach or default, and no event has occurred which,
with notice or lapse of time, would constitute a material breach or default by
the Company or any of its Subsidiaries or, to the Knowledge of the Company, by
any such other party, or permit termination or acceleration thereunder.

 

(b)           Except
as set forth on Schedule 2.12(b) of the Company Letter, with
respect to each Lease:

 

(1)           the
lease or sublease is legal, valid, binding, enforceable and in full force and
effect, subject to bankruptcy, insolvency, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally and except as the
availability of equitable remedies may be limited by general principles of
equity;

 

(2)           none
of the Company and its Subsidiaries, nor, to the Knowledge of the Company, any
other party to the lease or sublease is in material breach or default, and no
event has occurred which, with notice or lapse of time, would constitute a

 

15

 

material breach or
default by the Company or any of its Subsidiaries or, to the Knowledge of the
Company, by any such other party, or permit termination, modification or
acceleration thereunder;

 

(3)           to
the Knowledge of the Company, there are no material disputes, oral agreements
or forbearance programs in effect as to the lease or sublease;

 

(4)           none
of the Company and its Subsidiaries has assigned, transferred, conveyed,
mortgaged, deeded in trust or encumbered any interest in the leasehold or subleasehold;

 

(5)           all
facilities leased or subleased thereunder are supplied with utilities and other
services necessary for the operation of such facilities; and

 

(6)           other
than in the Ordinary Course, no construction, alteration or other leasehold
improvement work with respect to the lease or sublease remains to be paid for
or performed by the Company or any of its Subsidiaries.

 

Section 2.13         Contracts.

 

(a)           Schedule 2.13(a) of
the Company Letter sets forth a list of all contracts, agreements, arrangements
or understandings (written or oral) to which the Company or any of its
Subsidiaries (other than when a Subsidiary is acting in its capacity as special
servicer and such Subsidiary is not in material default with respect thereto)
is a party or by which it or any of them is bound that are material to the
business, assets, financial condition or net interest margin (other than
effects on net interest margin resulting from amortization charges or non-cash
adjustments) of the Company and its Subsidiaries taken as a whole, including
(regardless of materiality):

 

(1)           all
management contracts (other than when a Subsidiary is acting in its capacity as
a special servicer under property management contracts, agreements,
arrangements or understandings and such Subsidiary is not in material default
thereunder), agreements, arrangements or understandings (written or oral) and
contracts, agreements, arrangements or understandings (written or oral) with
consultants (or similar arrangements);

 

(2)           all
contracts, agreements, arrangements or understandings (written or oral) with
any Governmental Entity;

 

(3)           any
contract, agreement, arrangement or understanding (written or oral) relating to
the employment of any individual on a full-time, consulting or other basis or
relating to the severance of employment;

 

(4)           all  contracts, agreements, arrangements or
understandings (written or oral) that limit or purport to limit the ability of
the Company or any Subsidiary to compete in any line of business or with any
Person or in any geographic area or during any period of time; and

 

16

 

(5)           all
contracts, agreements, arrangements, or understandings (written or oral)
between or among the Company and an Affiliate of the Company.

 

All the foregoing
contracts, agreements, arrangements and understandings are herein referred to
collectively as the “Contracts.”

 

(b)           The
Company has delivered or otherwise made available to Parent a true and complete
copy of each Contract (each as amended to date), other than Contracts filed as
an exhibit to a Company SEC Report and Schedule 2.13(a) of the
Company Letter identifies the Company SEC Report with which such Contract is on
file.  Each Contract filed as an exhibit
to or incorporated by reference in a Company SEC Report filed by the Company
since January 1, 2005 and publicly available prior to the date hereof is a
true and correct copy of such Contract as currently in effect.  With respect to each Contract, none of the
Company and its Subsidiaries nor, to the Knowledge of the Company, any other
party is in material breach or default, and no event has occurred which with
notice or lapse of time would constitute a material breach or default by the
Company or any of its Subsidiaries or, to the Knowledge of the Company, by any
such other party, or permit termination, modification or acceleration under
that Contract.  Without limiting the
foregoing, CRIIMI MAE Services Limited Partnership (“CMSLP”) has
performed all special servicing functions with respect to those Contracts that
are pooling and servicing agreements or similar agreements to the extent that
CMSLP is the special servicer thereunder and in all respects satisfied its
obligations with respect thereto, in each case in accordance with such
Contracts without any material breach or default thereunder on the part of
CMSLP, and CMSLP shall retain such special servicing functions with respect to
such Contracts following the Closing without any right of termination on the
part of any third party (other than the customary right of the trustee
thereunder to terminate for cause).  All
such special servicing functions are performed solely by CMSLP (other than
certain property inspection functions that are sub-contracted to a third party)
and no other Subsidiary of the Company nor the Company has any material
obligation or potential liability with respect thereto.

 

(c)           As
of the date hereof, with respect to each subordinate commercial mortgage-backed
security owned, directly or indirectly through an ownership interest in an
issuer of collateralized debt or bond obligations, by the Company or any of its
Subsidiaries, either (i) such security is a security of the “controlling
class,” and permits the Company or one of its Subsidiaries, subject to the
conditions specified in the collateralized debt or bond obligations or the
related pooling and servicing agreement, to appoint, or cause the appointment
of, the special servicer of the mortgage loans subject to that agreement that
are required to be “specially serviced” or (ii) the Company or one of its
Subsidiaries directly or indirectly owns other related securities that are of
such “controlling class” and that so permit the Company or one of its
Subsidiaries to so appoint or cause the appointment of such special servicer.

 

Section 2.14         Licenses
and Authorizations.

 

(a)           The
Company and its Subsidiaries hold all material licenses, permits, certificates,
franchises, ordinances, registrations, or other rights, applications and
authorizations filed with, granted or issued by, or entered by any Governmental
Entity, including any state or local regulatory authorities asserting
jurisdiction over the Company or any of its Subsidiaries or their respective
businesses or assets, that are required for the conduct of their

 

17

 

respective
businesses as currently being conducted other than such licenses, permits,
certificates, franchises, ordinances, registrations or other rights,
applications and authorizations the absence of which would not individually or
in the aggregate materially impair the ability of the Company to consummate the
transactions contemplated hereby or by the Articles of Merger or of the Company
and its Subsidiaries to own and operate their respective properties, assets and
businesses (collectively, the “Company Authorizations”).

 

(b)           The
Company Authorizations are in full force and effect and have not been pledged
or otherwise encumbered, assigned, suspended, modified in any material adverse
respect, canceled or revoked, and each of the Company and its Subsidiaries has
operated in compliance with all terms thereof or any renewals thereof
applicable to it, other than where the failure to so comply would not
individually or in the aggregate reasonably be expected to have a Material Adverse
Effect or materially impair the ability of the Company or its Subsidiaries to
own and operate their respective properties, assets and businesses.  No event has occurred with respect to any of
the Company Authorizations which permits, or after notice or lapse of time or
both would permit, revocation or termination thereof or would result in any
other material impairment of the rights of the holder of any such Company
Authorizations.  To the Knowledge of the
Company, there is not pending any application, petition, objection or other
pleading with any Governmental Entity having jurisdiction or authority over the
operations of the Company or its Subsidiaries which questions the validity of
or contests any Company Authorization or which could reasonably be expected, if
accepted or granted, to result in the revocation, cancellation, suspension or
any materially adverse modification of any Company Authorization.

 

Section 2.15         Litigation.  Other than as disclosed in Schedule 2.15
of the Company Letter, as of the date of this Agreement (a) there is no
action, suit, proceeding or investigation to which the Company or any of its
Subsidiaries is a party (either as a plaintiff or defendant) pending or, to the
Knowledge of the Company, threatened before any Governmental Entity, and, to
the Knowledge of the Company, there is no basis for any such action, suit,
proceeding or investigation; (b) none of the Company and its Subsidiaries
has been permanently or temporarily enjoined by any Order, judgment or decree
of any Governmental Entity from engaging in or continuing to conduct the
business of the Company or its Subsidiaries; and (c) no Order, judgment or
decree of any Governmental Entity has been issued in any proceeding to which
the Company or any of its Subsidiaries is or was a party, or, to the Knowledge
of the Company, in any other proceeding, that enjoins or requires the Company
or any of its Subsidiaries to take action of any kind with respect to its
businesses, assets or properties.  None
of the actions, suits, proceedings and investigations listed in Schedule 2.15
of the Company Letter, individually or collectively, could reasonably be
expected to have a Material Adverse Effect.

 

Section 2.16         Employees.  There are no collective bargaining
agreements to which the Company or any of its Subsidiaries is a party.  None of the Company and its Subsidiaries has
experienced any strikes, grievances, claims of unfair labor practices or other
collective bargaining disputes and no organizational effort is presently being
made or threatened by or on behalf of any labor union with respect to its
employees.  To the Knowledge of the
Company, there is no reasonable basis to believe that the Company or any of its
Subsidiaries will be subject to any labor strike or other organized work force
disturbance following the Closing.  Each
of the Company and its Subsidiaries is in compliance in all material respects
with all applicable laws

 

18

 

relating to
employment and employment practices, workers’ compensation, terms and
conditions of employment, worker safety, wages and hours and the Worker
Adjustment and Retraining Notification Act. 
Except as set forth on Schedule 2.16 of the Company Letter,
there have been no claims of harassment, discrimination, retaliatory act or
similar actions against any officer, director or employee of the Company or its
Subsidiaries at any time during the past one year and, to the Knowledge of the
Company, no facts exist that could reasonably be expected to give rise to such
claims or actions.  Except as set forth
on Schedule 2.16 of the Company Letter, since January 1, 2002,
the Company has not released any present or former officer or employee from, or
otherwise waived, any provisions of such present or former officer’s or
employee’s employment or severance agreement or arrangement with respect to his
or her non-compete, non-solicitation or similar obligations.

 

Section 2.17         State
Takeover Statutes; Charter Ownership Limitations; Rights Agreement.  The Company has taken all action
necessary to exempt (i) BREF ONE’s entering into the Voting Agreement and
BREF ONE’s grant of a proxy to Parent pursuant to the Voting Agreement (the “Grant
of a Proxy”) and (ii) the Merger from the operation of any “fair
price,” “business combination,” “moratorium,” “control share acquisition” or
any other anti-takeover statute or similar statute (a “Takeover Statute”)
enacted under the laws of the State of Maryland, including Subtitles 6 and 7 of
Title 3 of the MGCL.  To the Company’s
Knowledge, no Takeover Statute of any state other than the State of Maryland
will apply to the Merger, the Voting Agreement or the Grant of a Proxy.  The Board of Directors of the Company has
taken all actions necessary to (i) waive or remove the application of the
ownership limitations set forth in Article XI of the Articles of
Amendment and Restatement of the Company to the Merger and (ii) amend the
Rights Agreement to ensure that (A) none of Parent, Sub or any of their
respective Affiliates (as hereinafter defined), individually or collectively,
shall be deemed to be an Acquiring Person (as defined in the Rights Agreement),
(B) a Distribution Date (as defined in the Rights Agreement) shall not be
deemed to have occurred, no Rights shall separate from the Common Shares (as
defined in the Rights Agreement) outstanding or otherwise become exerciseable
pursuant to Section 7 of the Rights Agreement, and no adjustments shall be
made pursuant to Section 11 of the Rights Agreement, (C) nothing in
the Rights Agreement shall be construed to give any holder of Rights or any
other Person (as defined in the Rights Agreement) any legal or equitable
rights, remedies or claims under the Rights Agreement and (D) none of the
events described in Sections 13(a)(i), (ii) or (iii) of the Rights
Agreement shall be deemed to have occurred, in each case solely as a result of (1) the
execution and delivery of the Merger Agreement or the Voting Agreement or (2) any
of the transactions contemplated by the Merger Agreement or the Voting Agreement,
including the Merger and the Grant of a Proxy. 
“Affiliate” has the meaning set forth in Rule 12b-2
promulgated under the Exchange Act and, in the case of the Company, includes
for purposes of this Agreement those Persons set forth on Schedule 2.17
of the Company Letter.

 

Section 2.18         Employee
Benefits.

 

(a)           Schedule 2.18(a) of
the Company Letter contains a true and complete list of all “pension plans”
and “welfare plans” as defined in Section 3(2) and 3(1),
respectively, of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”), in each case applied without regard to the exceptions
from coverage contained in Sections 4(b)(4) or 4(b)(5) thereof, and
any other plans, agreements, policies or arrangements maintained,

 

19

 

or contributed to
(or with respect to any obligation to contribute has been undertaken), by the
Company or any of its Subsidiaries or any ERISA Affiliate (as hereinafter
defined) of the Company or its Subsidiaries or with respect to which the
Company or any of its Subsidiaries has any obligation or liability (“Company
Employee Benefit Plans”).  True and
complete copies of (i) all Company Employee Benefit Plans (including all
amendments thereto) that have been reduced to writing; (ii) written
summaries of all unwritten Company Employee Benefit Plans; (iii) all trust
agreements, insurance contracts and summary plan descriptions related to the
Company Employee Benefit Plans; and (iv) the annual report filed on IRS Form 5500,
if applicable, for the most recent plan year for each Company Employee Benefit
Plan; and (v) other than as set forth on Schedule 2.18(a) of
the Company Letter, the most recent determination letter issued by the Internal
Revenue Service with respect to each Company Employee Benefit Plan that is
intended to qualify under Section 401(a) of the Code, has been made
available to Parent.  Each Company
Employee Benefit Plan has been maintained and administered in accordance with
its terms and applicable Law, including ERISA and the Code, in all material
respects, and each of the Company and its Subsidiaries and their respective
ERISA Affiliates has in all material respects met its obligations (if any) with
respect to each Company Employee Benefit Plan and has timely made all required
contributions (if any) thereto.  The
Company and its Subsidiaries and all Company Employee Benefit Plans are in
compliance in all material respects with the currently applicable provisions
(if any) of ERISA, the Code and other applicable federal, state and foreign
laws and the regulations thereunder.  “ERISA
Affiliate” means any member of (i) a controlled group of corporations
(as defined in Section 414(b) of the Code); (ii) a group of
trades or businesses under common control (as defined in Section 414(c) of
the Code); or (iii) an Affiliated service group (as defined under Section 414(m)
of the Code or the regulations under Section 414(o) of the Code).

 

(b)           None
of the Company, its Subsidiaries, their respective ERISA Affiliates or any of
their respective predecessors has ever contributed or been obligated to
contribute to or otherwise participated in or in any way, directly or
indirectly, has any liability with respect to any plan subject to Section 412
of the Code, Part 3 of Subtitle B of Title I of ERISA or Title IV of
ERISA, including any “multiemployer plan” (as defined in Sections
4001(a)(3) or 3(37) of ERISA).

 

(c)           Except
as set forth on Schedule 2.18(c) of the Company Letter, each
Company Employee Benefit Plan intended to qualify under Section 401(a) of
the Code has received a determination letter from the Internal Revenue Service
regarding its qualified status under the Code for all amendments required prior
to the Economic Growth and Tax Relief Reconciliation Act of 2001, and nothing has
occurred, whether by action or by failure to act, that caused or could
reasonably be expected to cause the revocation of such letter.  No action has been threatened, asserted,
instituted or, to the Knowledge of the Company, is anticipated against any of
the Company Employee Benefit Plans (other than routine claims for benefits and
appeals of such claims), any trustee or fiduciaries thereof, the Company, its
Subsidiaries, their respective ERISA Affiliates, any director, officer or
employee thereof, or any of the assets of any trust of any of the Company
Employee Benefit Plans.  No Company
Employee Benefit Plan is under, and none of the Company, its Subsidiaries and
their respective ERISA Affiliates has received any notice of, an audit or
investigation by the Internal Revenue Service, Department of Labor or any other
Governmental Entity and no such completed audit, if any, has resulted in the
imposition of any material tax or penalty. 
No non-exempt “prohibited transaction,” within the

 

20

 

meaning of Section 4975
of the Code and Section 406 of ERISA, has occurred or is reasonably
expected to occur with respect to the Company Employee Benefit Plans that could
result in the imposition of a material tax or penalty on the Company or its
Subsidiaries under Section 4975 of the Code or Section 502(i) or
502(l) of ERISA.

 

(d)           Except
as set forth on Schedule 2.18(d) of the Company Letter, (i) the
consummation of the transactions contemplated by this Agreement will not give
rise to any liability, including liability for severance pay, unemployment
compensation, termination pay, or withdrawal liability, or accelerate the time
of payment or vesting or increase the amount or value of compensation or
benefits due to any employee or former employee solely by reason of such
transactions or by reason of a termination following such transaction and (ii) no
amounts payable under any Company Employee Benefit Plan will be non-deductible
for U.S. federal income tax purposes by virtue of Sections 162(m) or 280G of
the Code.

 

(e)           None
of the Company, any Subsidiary or any ERISA Affiliate maintains, contributes to
or in any way provides for any benefits of any kind whatsoever (other than
under Section 4980B of the Code, the Federal Social Security Act or a plan
qualified under Section 401(a) of the Code) to any current or future
retiree or terminee.

 

(f)            Except
as set forth on Schedule 2.18(f) of the Company Letter, (i) none
of the Company, its Subsidiaries and their respective ERISA Affiliates have any
material unfunded liabilities pursuant to any Company Employee Benefit Plan
that is not intended to be qualified under Section 401(a) of the Code
and is an employee pension benefit plan within the meaning of Section 3(2) of
ERISA, a nonqualified deferred compensation plan or an excess benefit plan, (ii) each
Company Employee Benefit Plan that is a “nonqualified deferred compensation
plan” (as defined under Section 409A(d)(1) of the Code) has been
operated and administered in good faith compliance with Section 409A of
the Code from the period beginning January 1, 2005 through the date hereof
and has not been materially modified since October 2, 2004, (iii) any
amounts paid or payable pursuant to each Company Employee Benefit Plan which is
a “nonqualified deferred compensation plan” (as defined under Section 409A(d)(1) of
the Code) could not reasonably be expected to be includable in the gross income
of a service recipient (within the meaning of IRS Notice 2005-1) or subject to
interest or the additional tax imposed by Section 409A(a)(1)(B) of
the Code, and (iv) all bonus, incentive, profit sharing or other payments
paid by the Company and its Subsidiaries are paid within 2 1⁄2 months after the
end of the taxable year in which the relevant services required for the payment
were performed and could not reasonably be expected to be considered a “nonqualified
deferred compensation plan” (as defined under Section 409A(d)(1) of
the Code).

 

(g)           Except
as set forth on Schedule 2.18(g) of the Company Letter, no
individual who performs services for the Company or its Subsidiaries and who is
not treated as an employee for U.S. federal income tax purposes by the Company
or its Subsidiaries could reasonably be expected to constitute an employee
under applicable Law or for any purpose, including tax withholding purposes or
Company Employee Benefit Plan purposes.

 

(h)           Neither
the Company, its Subsidiaries and their respective ERISA Affiliates, any
officer or, to the Knowledge of the Company, employee thereof has made any
legally binding promises or commitments to create any additional plan,
agreement or

 

21

 

arrangement, or to
modify or change in any material way any existing Company Employee Benefit
Plan.  No event, condition or
circumstance exists that could reasonably be expected to prevent the amendment
or termination of any Company Employee Benefit Plan.

 

(i)            Schedule 2.18(i) of
the Company Letter sets forth a true and complete list of each current or
former employee, officer, director or consultant of the Company and its
Subsidiaries that holds (i) a stock option as of the date hereof, together
with the number of shares of the Company Common Stock subject to such stock
option, the date of grant of such stock option, the exercise price of such
stock option, the expiration date of such stock option, the vesting schedule for
such stock option and whether or not such stock option is intended to qualify
as an “incentive stock option” within the meaning of Section 422(b) of
the Code and (ii) a restricted stock unit as of the date hereof, together
with the number of shares of the Company Common Stock subject to such
restricted stock unit, the date of grant of such restricted stock unit and the
vesting schedule for such restricted stock unit.

 

Section 2.19         Environmental
Matters.  Each of the Company and
its Subsidiaries is in compliance with all Environmental Laws (as defined
hereinafter) other than where the failure to be in compliance would not
individually or in the aggregate be reasonably expected to have a Material
Adverse Effect.  There is no pending or,
to the Knowledge of the Company, threatened civil or criminal litigation,
written notice of violation, formal administrative proceeding, or written
notice of investigation or inquiry or written information request by any
Governmental Entity, relating to any Environmental Law involving the Company or
any of its Subsidiaries or any of their respective assets.  No representation or warranty is made in this
Section 2.19 with respect to any securitization trust for which CMSLP
serves as special servicer.  To the
Knowledge of the Company, neither the Company nor any of its Subsidiaries has
any environmental condition governed by Environmental Law that can reasonably
be expected to have a Material Adverse Effect. 
“Environmental Law” means any foreign, federal, state or local
law, statute, permit, Orders, rule or regulation or the common or
decisional law relating to the environment or occupational health and safety,
including any statute, regulation or Order pertaining to (i) treatment,
storage, disposal, generation and transportation of industrial, toxic or
hazardous substances or solid or hazardous waste; (ii) air, water and
noise pollution; (iii) groundwater and soil contamination; (iv) the
release or threatened release into the environment of industrial, toxic or
hazardous substances, or solid or hazardous waste, including emissions,
discharges, injections, spills, escapes or dumping of pollutants, contaminants
or chemicals; (v) the protection of wildlife, marine sanctuaries and
wetlands, including, without limitation, all endangered and threatened species;
(vi) storage tanks, vessels and containers; (vii) underground and
other storage tanks or vessels, abandoned, disposed or discarded barrels,
containers and other closed receptacles; (viii) health and safety of
employees and other Persons; and (ix) manufacture, processing, use,
distribution, treatment, storage, disposal, transportation or handling of
pollutants, contaminants, chemicals or industrial, toxic or hazardous
substances or oil or petroleum products or solid or hazardous waste.

 

Section 2.20         Investments.  Schedule 2.20 of the Company
Letter sets forth a materially accurate and complete list of material
investments, including any securities, derivative instruments, repurchase
agreements, options, forwards, futures or hybrid securities (“Company
Investments”) owned by the Company or any of its Subsidiaries as of June 30,
2005, together with the cost basis, book or amortized value, as the case may
be, and investment rating (if any)

 

22

 

as of June 30,
2005 of each such Company Investment. 
None of the Company or its Subsidiaries owns any convertible or
participating debt obligations.

 

Section 2.21         Legal
Compliance.  Each of the Company
and its Subsidiaries and the conduct and operation of their respective business
is and has been in compliance with each Law of any Governmental Entity that is
applicable to the Company or its Subsidiaries or their respective businesses,
other than where the failure to be or to have been in compliance would not
individually or in the aggregate reasonably be expected to have a Material
Adverse Effect or materially impair the ability of the Company and its
Subsidiaries to own and operate their respective properties, assets and
businesses in the Ordinary Course.

 

Section 2.22         Company
SEC Reports.

 

(a)           The
Company has filed with the SEC each registration statement, report and proxy or
information statement (including exhibits and any amendments thereto) required
to be filed by the Company with the SEC since January 1, 2003
(collectively, the “Company SEC Reports”).  As of the respective dates the Company SEC
Reports were filed with the SEC or amended, each of the Company SEC Reports (a) complied
as to form in all material respects with all applicable requirements of the
Securities Act and Exchange Act and (b) did not contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided,
however, that clause (b) shall not extend to exhibits thereto or
documents incorporated by reference therein, except to the extent a statement
or omission in such exhibit or document would cause to be untrue a statement of
a material fact in the body of such Company SEC Report or would cause to be
omitted from the body of such Company SEC Report a material fact required to be
stated therein or necessary to make the statements made in the body of such
Company SEC Report not misleading.

 

(b)           The
Company has no outstanding and unresolved comments from the SEC with respect to
any of the Company SEC Reports.  The
consolidated financial statements of the Company (including the notes thereto)
included in the Company SEC Reports complied as to form in all material
respects with the applicable accounting requirements and the published rules and
regulations of the SEC with respect thereto, were prepared in accordance with
GAAP applied on a consistent basis during the periods involved (except, in the
case of the unaudited statements, as permitted by Rule 10-01 of Regulation
S-X of the SEC) and fairly presented, in accordance with applicable
requirements of GAAP and the applicable rules and regulations of the SEC
(subject, in the case of the unaudited statements, to normal, recurring
adjustments, none of which are material), the consolidated financial position
of the Company and its Subsidiaries, taken as a whole, as of their respective
dates and the consolidated statements of operations and the consolidated
statements of cash flows of the Company and its Subsidiaries for the periods
presented therein.  Since January 1,
2003, there has been no material change in the Company’s accounting methods or
principles that would be required to be disclosed in the Company’s financial
statements in accordance with GAAP, except as described in the notes to such
Company financial statements.

 

(c)           The
Company and each of its officers and trustees are in compliance, and have
complied, in all material respects with (i) the applicable provisions of
the

 

23

 

Sarbanes-Oxley Act
of 2002 and the related rules and regulations promulgated under such Act
(the “Sarbanes-Oxley Act”) or the Exchange Act and (ii) the
applicable listing and corporate governance rules and regulations of the
NYSE.  There are no outstanding loans
made by the Company or any of its Subsidiaries to any executive officer (as
defined under Rule 3b-7 promulgated under the Exchange Act) or director of
the Company.  Since the enactment of the
Sarbanes-Oxley Act, neither the Company nor any of its Subsidiaries has made
any loans to any executive officer or director of the Company or any of its
Subsidiaries.  The Company has
established and maintains disclosure controls and procedures (as such term is
defined in Rule 13a-15(e) under the Exchange Act); such disclosure
controls and procedures are designed to ensure that all material information
relating to the Company, including its consolidated Subsidiaries, is made known
on a timely basis to the Company’s principal executive officer and its
principal financial officer by others within those entities; and the Company
believes that such disclosure controls and procedures are effective in timely
alerting the Company’s principal executive officer and its principal financial
officer to material information required to be included in the Company’s
periodic reports required under the Exchange Act.

 

Section 2.23         Transactions
with Affiliates.  Except as set
forth in Schedule 2.23 of the Company Letter, neither the Company
nor any of its Subsidiaries has entered into any material transaction, contract
or arrangement with any Affiliate (other than the Company or any of its
Subsidiaries) or any officer, director or employee of the Company or a
Subsidiary or other Affiliate of the Company or any of their respective
relatives (each, a “Related Person”) in respect of which either the
Company or any of its Subsidiaries has or may in the future have continuing
obligations.  None of the Company and its
Subsidiaries has any liability in respect of any Contract pursuant to which any
assets or business has been acquired from any Related Person.  Except as specifically set forth in Schedule 2.23
of the Company Letter, each material transaction, contract and arrangement with
a Related Person is terminable, without penalty or other termination fee or
charge, by the Company or a Subsidiary party thereto on no more than 30 days’
notice.

 

Section 2.24         Insurance.  Schedule 2.24 of the Company
Letter lists all insurance policies maintained by the Company (the “Company
Insurance Policies”).  None of the
Company or its Subsidiaries is in any material default with respect to its
obligations under any Company Insurance Policy, and each such insurance policy
is in full force and effect, is in such amounts and against such losses and
risks as are consistent with industry practice for companies engaged in
businesses similar to those of the Company and each of its Subsidiaries (taking
into account the cost and availability of such insurance) and, in the
reasonable judgment of senior management of the Company, are adequate to protect
the properties and businesses of the Company and each of its Subsidiaries and
all premiums due thereunder have been paid. 
None of the Company or its Subsidiaries has been refused any insurance
with respect to its business, properties or assets, nor has its coverage been
limited, by any insurance carrier to which it has applied for any such
insurance with which it has carried insurance since January 1, 2004.  Schedule 2.24 of the Company
Letter lists all claims of the Company and each of its Subsidiaries related to
the businesses, assets or properties of the Company or such Subsidiary, as the
case may be, which are currently pending or which have been made with an
insurance carrier since January 1, 2004. 
From January 1, 2002 to the date hereof, neither the Company nor
any of its Subsidiaries has received notice of cancellation of any Company
Insurance Policy.

 

24

 

Section 2.25         Investment
Company Act of 1940.  Neither the
Company nor any of its Subsidiaries is, or at the Closing Date will be,
required to be registered as an investment company under the Investment Company
Act of 1940, as amended.

 

Section 2.26         Opinion
of Financial Advisor.  The Board
of Directors of the Company has received the written opinion of Citigroup
Global Markets Inc. (the “Company Financial Advisor” or “Citigroup”),
dated as of October 6, 2005, to the effect that, as of such date, the
consideration to be received by holders of the Shares pursuant to this
Agreement is fair to such holders from a financial point of view.  A copy of the written opinion of the Company
Financial Advisor has been delivered to Parent. 
To the Knowledge of the Company, as of the date hereof, the Company
Financial Advisor has not withdrawn such opinion or informed the Board of
Directors of the Company that it may not rely on such opinion.

 

Section 2.27         Required
Vote of Company Stockholders. 
The affirmative vote of the holders of two-thirds of the outstanding
shares of the Company Common Stock is required to approve the Merger.  No other vote of the stockholders of the
Company is required by law, the Articles of Amendment and Restatement of the
Company, as amended, or the by-laws of the Company or otherwise in order for
the Company to consummate the Merger and the transactions contemplated hereby.

 

Section 2.28         Certain
Information.  None of the
information supplied by the Company or its Subsidiaries for inclusion or incorporation
by reference in the proxy statement relating to the Company Stockholders’
Meeting (as defined in Section 4.2(a)) (together with any amendments
thereof or supplements thereto, the “Proxy Statement”) will, at the time
filed with the SEC, contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided, however, that the foregoing shall
not extend to exhibits thereto or documents incorporated by reference therein,
except to the extent a statement or omission in such exhibit or document would
cause to be untrue a statement of a material fact in the body of such document
or would cause to be omitted from the body of such document a material fact
required to be stated therein or necessary to make the statements made in the
body of such document not misleading.

 

Section 2.29         Brokers.  No broker, investment banker or other Person
(other than Citigroup, the fees and expenses of which will be paid by the
Company, as reflected in an agreement between such firm and the Company, a true
and accurate copy of which has been provided to Parent) is entitled to any
broker’s, finder’s or other similar fee or commission in connection with the
transactions contemplated by this Agreement based upon arrangements made by or
on behalf of the Company.  

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES OF PARENT AND SUB

 

Each of Parent and Sub represents and warrants to the
Company as follows:

 

25

 

Section 3.1            Organization,
Corporate Power and Authority.

 

(a)           Parent
is a corporation duly incorporated, validly existing and in good standing under
the laws of the Province of Quebec.  Sub
is a corporation duly incorporated, validly existing and in good standing under
the laws of the State of Maryland.

 

(b)           (1) Each
of Parent and Sub has all the requisite power and authority to execute and
deliver this Agreement and, in the case of Sub, the Articles of Merger, (2) this
Agreement has been (i) duly and validly executed and delivered by each of
Sub and Parent and (ii) duly and validly authorized by all necessary
corporate action on the part of each of Parent and Sub, (3) the Articles
of Merger will at the Closing be (i) duly and validly executed and
delivered by Sub and (ii) duly and validly authorized by all necessary
corporate action on the part of Sub, (4) this Agreement constitutes the
valid and binding obligations of each of Parent and Sub enforceable against
such party in accordance with their respective terms, subject as to
enforceability to bankruptcy, insolvency, reorganization, fraudulent conveyance
and similar laws relating to creditors’ rights and to general principles of
equity, and (5) the Articles of Merger will at the Closing constitute the
valid and binding obligation of Sub enforceable against Sub in accordance with
its respective terms, subject as to enforceability to bankruptcy, insolvency,
reorganization, fraudulent conveyance and similar laws relating to creditors’
rights and to general principles of equity.

 

Section 3.2            Noncontravention.  Except for the applicable requirements of the
Securities Act, the Exchange Act, any applicable state and foreign securities
laws, the NYSE and the MGCL, none of the execution and delivery of this
Agreement or the Articles of Merger by Parent or Sub or the consummation of the
transactions contemplated hereby or thereby will (a) conflict with or
violate any provision of the charter, by-laws or similar organizational
documents of Parent or Sub or any of their respective Subsidiaries or (b) require
on the part of Parent or Sub or any of their respective Subsidiaries any filing
with, or any permit, authorization, consent or approval of, any Governmental
Entity, except where the failure to make such filing or obtain such permit,
authorization, consent or approval would not individually or in the aggregate
reasonably be expected to have a material adverse effect on the ability of
Parent or Sub to timely consummate the transactions contemplated hereby or (c) violate,
result in a breach of, constitute (with or without due notice or lapse of time
or both) a default under, result in the acceleration of, create in any party
any right to accelerate, terminate or cancel, or require any notice, consent or
waiver under, any contract, lease, sublease, license, sublicense, franchise,
permit, indenture, agreement or mortgage for borrowed money, instrument of
indebtedness or Lien to which Parent or Sub or any of their respective
Subsidiaries is a party or by which Parent or Sub or any of its Subsidiaries is
bound or to which any of their respective assets is subject or any Law
applicable to Parent or Sub or any of its Subsidiaries or any of their
respective properties or assets; other than, in the case of (b) or (c) above,
such conflicts, violations, breaches, defaults, accelerations, terminations,
cancellations, notices, consents, waivers or Liens as would not individually or
in the aggregate reasonably be expected to have a material adverse effect on
the ability of Parent or Sub to timely consummate the transactions contemplated
hereby.

 

Section 3.3            Availability
of Funds.  Parent has available
to it sufficient funds to deposit the Payment Fund as specified in Section 1.10(a).

 

Section 3.4            Certain
Information.  None of the
information supplied by Parent or its Subsidiaries for inclusion or
incorporation by reference in the Proxy Statement or other

 

26

 

Company SEC
Reports will, at the time filed with the SEC, contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading; provided, however, that the
foregoing shall not extend to exhibits thereto or documents incorporated by
reference therein, except to the extent a statement or omission in such exhibit
or document would cause to be untrue a statement of a material fact in the body
of such document or would cause to be omitted from the body of such document a
material fact required to be stated therein or necessary to make the statements
made in the body of such document not misleading.

 

Section 3.5            Investigation.  Parent and Sub acknowledge and agree that
each such party has made its own inquiry and investigation into, and, based
thereon, has formed an independent judgment concerning, the Company and its
business.  Each of Parent and Sub further
acknowledges and agrees that the only representations, warranties, covenants
and agreements made by the Company are the representations, warranties,
covenants and agreements made in this Agreement and the Company Letter, and the
Company makes no other express or implied representation or warranty with
respect to the Company or its business or otherwise or with respect to any
other information provided by the Company or any of its Affiliates or
representatives.  Neither Parent nor Sub
has relied upon any other representation or other information made or supplied
by or on behalf of the Company or by any Affiliate or representative of the
Company.

 

Section 3.6            Brokers.
 No broker, investment banker or
other Person is entitled to any broker’s, finder’s or other similar fee or
commission in connection with the transactions contemplated by this Agreement
based upon arrangements made by or on behalf of the Parent or Sub.

 

ARTICLE IV.

ADDITIONAL AGREEMENTS

 

Section 4.1            Preparation
of the Proxy Statement.  As soon
as reasonably practicable after the date hereof, but in no event later than 30
days after the date of this Agreement, the Company shall prepare for filing and
file with the SEC a preliminary Proxy Statement, in a form reasonably
satisfactory to Parent.  The Company
shall respond to comments and requests from the SEC, as appropriate, use all
reasonable efforts to cause the Proxy Statement to be cleared by the SEC,
thereafter mail the Proxy Statement to its stockholders entitled thereto,
solicit proxies with respect to the Company Common Stock as contemplated
thereby and appoint Persons to vote such proxies.  The Company shall promptly deliver to Parent
copies of any comments or requests with respect to the Proxy Statement that it
receives from the SEC.  Parent, Sub and
the Company will consult and cooperate with each other in preparing such
document and responding to such comments and requests and, without limiting the
generality of the foregoing, Parent and Sub shall furnish to the Company the
information relating to them that the Exchange Act requires to be set forth in
such document, and the Company shall cause the Proxy Statement to comply as to
form in all material respects with the applicable provisions of the Exchange
Act.  The parties shall promptly correct
any such information which contains any untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary in
order to

 

27

 

make the
statements made therein, in the light of the circumstances under which they are
made, not misleading.

 

Section 4.2            Stockholder
Approvals.

 

(a)           The
Company shall use all reasonable efforts to establish a record date for, duly
call, give notice of and hold a special meeting of its stockholders (the “Company
Stockholders’ Meeting”) as promptly as practicable for the purpose of
voting upon this Agreement and the transactions contemplated hereby and
obtaining the approval by its stockholders of the Merger in accordance with Section 3-105(e) of
the MGCL.  The Company will, through its
Board of Directors, declare the Merger advisable and recommend to its
stockholders approval of the Merger, shall include such declaration and
recommendation in the Proxy Statement and shall not withdraw such
recommendation except to the extent that the Board of Directors of the Company
shall have withdrawn or modified its approval or recommendation of this
Agreement or the Merger as permitted by Section 4.10(b).  Without limiting the generality of the
foregoing, the Company’s obligations pursuant to the first sentence of this Section 4.2(a) shall
not be affected by (i) the commencement, public proposal, public
disclosure or communication to the Company of any Takeover Proposal (as defined
in Section 4.10(a)) or (ii) the withdrawal or modification by the
Company’s Board of Directors or any committee thereof of the approval or
recommendation of this Agreement by the Company’s Board of Directors or any
committee thereof.

 

(b)           Parent,
as the sole stockholder of Sub, shall, prior to the Closing, approve the Merger
in accordance with Section 3-105(e) of the MGCL.

 

Section 4.3            Conditions
to Merger.  Each of the Company,
Parent and Sub will take all actions necessary to comply promptly with all
legal requirements that may be imposed with respect to the Merger (including
furnishing all information required in connection with approvals of or filings
with any other Governmental Entity) and will promptly cooperate with and
furnish information to each other in connection with any such requirements
imposed upon any of them or any of their respective Subsidiaries in connection
with the Merger.  Each of the Company,
Parent and Sub will, and will cause its Subsidiaries to, take all actions
necessary to obtain (and will cooperate with each other in obtaining) any
consent, authorization, Order, approval or waiver of, or any exemption by, any
Governmental Entity required to be obtained or made by the Company, Parent or
any of their respective Subsidiaries in connection with the Merger or the
taking of any action contemplated by this Agreement.

 

Section 4.4            Employee
Benefits and Other Matters.

 

(a)           To
the extent that service is relevant for purposes of eligibility, vesting or the
calculation or accrual of benefits (other than the accrual of benefits under
any defined benefit pension plan) under any employee benefit plan, program or
arrangement sponsored, maintained or contributed to by the Company, any of its
Subsidiaries, Parent or any of its Affiliates for the benefit of any persons
who are employees of the Company or any of its Subsidiaries immediately before
and after the Effective Time (the “Company Employees”), such plan,
program or arrangement shall credit such Company Employees for service earned
on and prior to the Effective Time with the Company or any its Subsidiaries, or
any of their respective

 

28

 

predecessors to
the same extent credited under the Company Employee Benefit Plans, except to
the extent such credit would result in the duplication of benefits.

 

(b)           With
respect to any “welfare plan”, as defined in Section 3(1) of ERISA,
sponsored, maintained or contributed to for the benefit of Company Employees
after the Effective Time, the Parent shall or shall cause the Company to use
its commercially reasonable efforts to waive all limitations as to pre-existing
conditions or evidence of insurability to the same extent waived under the
Company Employee Benefit Plans and shall use its commercially reasonable
efforts to provide credit to Company Employees for any co-payments, deductibles
or out-of-pocket expenses paid by such Company Employees under the Company
Employee Benefit Plans during the portion of the relevant plan year preceding
the Effective Time, in each case to the extent permitted under the terms of the
applicable policy.

 

(c)           Nothing
in this Agreement shall prevent the Parent or any of its Affiliates (including
the Company or any of its Subsidiaries) from terminating the employment or
services of any of the Company Employees at any time after the Effective Time,
or otherwise shall guarantee any of the Company Employees continued employment
or service with the Parent or any of its Affiliates (including the Company or
any of its Subsidiaries), or any of their successors or assigns, for any period
of time.  No Company Employee or other
agent, nor any beneficiary or dependent thereof, shall be a third party
beneficiary of this Agreement or be entitled to bring any action or claim
hereunder.

 

(d)           Parent
and the Company agree that upon the Merger the Surviving Corporation shall
assume and agree to perform the Company’s obligations under the change of
control and stay-put agreements and other benefits set forth on Schedule 4.4(d) and
Schedule 4.7(xii) of the Company Letter, and effective as of the
Effective Time, Parent hereby guarantees payment of all such obligations.

 

Section 4.5            Indemnification;
Directors’ and Officers’ Insurance.  All
rights to indemnification (including with respect to the advancement of
attorney’s fees, costs or expenses) for actual or alleged acts, errors or
omissions occurring prior to the Effective Time now existing in favor of the
current or former directors or officers of the Company and its Subsidiaries as
provided in their respective articles or certificates of incorporation or
by-laws shall survive the Merger and shall continue in full force and effect in
accordance with their terms for a period of not less than six years from the
Effective Time and the obligations of the Company in connection therewith shall
be deemed irrevocably assumed and guaranteed, effective as of the Effective
Time, by Parent and the Surviving Corporation. 
In the event that any claim or claims for indemnification are asserted
or made within such six-year period, all rights to indemnification in respect
of any such claim or claims shall continue until the disposition of any and all
such claims.  Parent shall, or cause the
Surviving Corporation to, for not less than six years from the Effective Time,
cause to be maintained in effect, to the extent available, a policy of
directors’ and officers’ liability insurance which shall be substantially
identical in terms of coverage, and have conditions substantially identical, to
the policies maintained by the Company on the date hereof (provided that Parent
may, or may cause the Surviving Corporation to, substitute therefor policies,
including a “tail” policy, of at least the same coverage containing terms and
conditions which are no less advantageous) with respect to matters occurring
prior to the Effective Time;

 

29

 

provided,
further, however, that in satisfying its obligations under this Section 4.5,
the Surviving Corporation shall not be obligated to pay (i) in the case of
annual premiums, such premiums at a rate in excess of 250% of the rate of the
Company’s annual premiums for coverage for its current fiscal year (which
annual premiums the Company represents and warrants to be approximately
$860,000 in the aggregate) and (ii) in the case of a one-time premium
payment for “tail” policies of more than $2,250,000 to obtain and maintain
insurance coverage pursuant hereto for a six-year period, it being understood
and agreed that Parent and the Surviving Corporation shall nevertheless be
obligated to provide such coverage for such six-year period as may be obtained
for such amount.  The provisions of this Section 4.5
are intended to be for the benefit of, and shall be enforceable by, each Person
who is or has been a director or officer of the Company or a Subsidiary of the
Company, and such director’s or officer’s heirs and personal representatives
and shall be binding on all successors and assigns of Parent and the Surviving
Corporation.

 

Section 4.6            Reasonable
Efforts.  Upon the terms and
subject to the conditions of this Agreement, unless, to the extent permitted by
Section 4.10(b), the Board of Directors of the Company approves or
recommends a Superior Proposal (as defined in Section 4.10(b), each of the
parties hereto agrees to use all reasonable efforts to take, or cause to be
taken, all action and to do, or cause to be done, and to assist and cooperate
with the other parties in doing, all things necessary, proper or advisable to
consummate and make effective, in the most expeditious manner practicable, the
Merger and the other transactions contemplated by this Agreement and the
Articles of Merger, subject to the appropriate vote of stockholders of the
Company described in Section 5.1(a), including (i) the obtaining of
all necessary actions or non-actions, waivers, consents and approvals from all
Governmental Entities and the taking of all reasonable steps as may be
necessary to obtain an approval or waiver from, or to avoid an action or
proceeding by, any Governmental Entity (including those in connection with
Takeover Statutes), (ii) the giving of all notices and obtaining of all
necessary consents, approvals, waivers and exemptions from third parties,
including the notices, consents, approvals, waivers and exemptions set forth in
Schedule 2.3 of the Company Letter, (iii) the defending of any
lawsuits or other legal proceedings, whether judicial or administrative,
challenging this Agreement or the consummation of the transactions contemplated
hereby, including seeking to have any stay or temporary restraining order
entered by any court or other Governmental Entity with respect to the Merger or
this Agreement vacated or reversed, and (iv) the execution and delivery of
any additional instruments necessary to consummate the transactions contemplated
by this Agreement.

 

Section 4.7            Conduct
of Company’s Business.  From the
date of this Agreement through the Closing, the Company (a) shall maintain
its existence and carry on its business in the Ordinary Course and, to the
extent consistent therewith, (b) shall use all reasonable efforts to keep
available the services of its current officers and employees and preserve its
business relationships to the end that its goodwill and ongoing business shall
continue at the time of the Closing without material change and (c) shall
preserve the Company’s status as a REIT within the meaning of the Code and
shall not take or omit to take any action, or permit any status to exist, that
would likely jeopardize, or is inconsistent with, the Company’s status as a REIT
for any period.  Notwithstanding the
foregoing, the Company shall enter into hedging transactions at the request of
Parent, at the Company’s sole cost and expense, as set forth on Schedule 4.7
of the Company Letter.  The Company shall
promptly answer any reasonable inquiries of Parent with respect to operational
matters and promptly advise Parent orally and in writing of any Material

 

30

 

Adverse Effect or
any matter which could reasonably be expected to result in the Company being
unable to deliver the certificate described in Section 5.3(e).  Without limiting the generality of the
foregoing, during the period from the date of this Agreement until the earlier
of the termination of this Agreement or the Effective Time, except as otherwise
contemplated by this Agreement or as set forth on Schedule 4.7 of
the Company Letter, the Company shall not, nor shall it permit any of its
Subsidiaries to, without the prior written consent of Parent, subject to the
fiduciary duties of CMSLP to the beneficiaries of the trust securitizations of
which CMSLP acts as special servicer or in any other capacity:

 

(i)            adopt any
amendment to its articles or certificate of incorporation or by-laws or other
comparable organizational documents;

 

(ii)           issue,
deliver, sell, pledge, dispose of or otherwise encumber any shares of its
capital stock, any other voting securities or equity equivalent or any
securities convertible into, or any rights, warrants or options to acquire, any
such shares, voting securities, equity equivalent or convertible securities,
other than the issuance of shares of the Company Common Stock upon the exercise
of stock options or vesting of restricted stock outstanding on the date hereof
pursuant to the Company stock option and deferred compensation plans in
accordance with their terms, the conversion of any convertible securities
outstanding as of the date hereof and the issuance of shares of the Company
Common Stock upon any exercise of the Warrant;

 

(iii)          (x) declare,
set aside or pay any dividends on, or make any other actual, constructive or
deemed distributions in respect of, any of its capital stock, or otherwise make
any payments to its stockholders in their capacity as such, other than (A) dividends
and other distributions by Subsidiaries of the Company to the Company or its
wholly-owned Subsidiaries, (B) annual dividends, in an aggregate amount of
no more than $100,000, paid to the preferred shareholders of CBO REIT II, Inc.
and (C) the regular accumulation or payment of dividends on the Preferred
Stock, (y) other than in the case of any wholly-owned Subsidiary of the
Company, split, combine or reclassify any of its capital stock or issue or
authorize the issuance of any other securities in respect of, in lieu of or in
substitution for shares of its capital stock or (z) purchase, redeem or
otherwise acquire any shares of capital stock of the Company or any of its
non-wholly-owned Subsidiaries of the Company or any other debt or equity
securities of any of them or any rights, warrants or options to acquire any
such shares or other securities;

 

(iv)          acquire or
agree to acquire (x) by merging or consolidating with, or by purchasing a
substantial portion of the assets or properties of or equity in, or by any
other manner, any business or any corporation, partnership, limited liability
company, association or other business organization or division thereof or
(y) any assets or properties that are, individually or in the aggregate,
material to the Company and its Subsidiaries taken as a

 

31

 

whole, other than any securities purchased by CRIIMI MAE Securities
Trading Co., in accordance with the parameters set forth on Schedule 4.7(iv) of
the Company Letter;

 

(v)           sell,
lease (other than the subleasing of excess office space), license, mortgage or
otherwise encumber or subject to any Lien or otherwise dispose of any of its
material assets, other than in the Ordinary Course;

 

(vi)          other than
in the Ordinary Course, incur or assume any indebtedness for borrowed money,
guarantee any such indebtedness, issue or sell any debt securities or warrants
or other rights to acquire any debt securities of the Company, guarantee or
otherwise support any debt securities or make any loans or advances to any
other Person, or enter into any arrangement having the economic effect of any
of the foregoing, other than indebtedness in a maximum aggregate principal
amount not exceeding $5 million;

 

(vii)         alter
(through merger, liquidation, reorganization, restructuring or in any other
fashion) the corporate structure or ownership of the Company or any
wholly-owned Subsidiary of the Company, except that the Company shall
liquidate, dissolve or otherwise dispose of all interests in the Subsidiaries
and Company Business Entities set forth on Schedule 4.7(vii) of
the Company Letter prior to the Closing Date;

 

(viii)        change
or modify the accounting methods, principles or practices used by it (other
than changes or modifications required to be made by changes in GAAP), after
the date hereof, provided that Parent receives written notice of any such
changes);

 

(ix)           (A) make
or rescind any material Tax election or (B) settle or compromise any
claim, action, suit, litigation, proceeding, arbitration, investigation, audit
or controversy in relation to Taxes;

 

(x)            violate
or fail to perform any obligation or duty imposed upon it by any Law, where
such violation or failure, individually or in the aggregate, would reasonably
be expected to have a Material Adverse Effect;

 

(xi)           take any
action that would reasonably be expected to result in any of the conditions set
forth in Section 5.1 or 5.3 not being satisfied in a timely manner as
contemplated by this Agreement; or

 

(xii)          except
as may be required by Law or as set forth on Schedule 4.7(xii) of
the Company Letter, adopt any new employee benefit plan, incentive plan,
severance plan, bonus plan, stock option plan or similar plan, make any new
grants under any existing stock option plan or incentive plan, bonus plan or
similar plan, amend, or otherwise modify any employee benefit plan, incentive
plan, severance plan, bonus plan, stock option plan or similar plan, or enter
into or amend any employment agreement or similar

 

32

 

agreement or arrangement or grant or become obligated to grant any
bonus or any increase in the compensation of directors, officers or employees,
except such changes as may be required by Law; or terminate the employment of
any key employee, take any affirmative action to amend or waive any performance
or vesting criteria or accelerate vesting, exercise or funding under any
employee benefit plan;

 

(xiii)         settle
or compromise any material litigation or waive, release or assign any material
rights or claims;

 

(xiv)        enter
into or amend or otherwise modify any agreement with any Person that is an
Affiliate of the Company (other than agreements with wholly-owned Subsidiaries
of the Company), including the Termination Agreement or, as of the date of this
Agreement, is an employee, officer or director of the Company or any Subsidiary
of the Company;

 

(xv)         authorize,
recommend, propose or announce an intention to adopt a plan of complete or
partial liquidation or dissolution of the Company or any Subsidiary of the Company;

 

(xvi)        (A) materially
amend or terminate, or waive compliance with the material terms of or material
breaches under any Contract or (B) other than in the Ordinary Course,
enter into a new contract, agreement or arrangement that, if entered into prior
to the date of this Agreement, would have been a Contract;

 

(xvii)       fail
to use all reasonable efforts to comply or remain in compliance with all
material terms and provisions of any Contract;

 

(xviii)      authorize,
recommend, propose or announce an intention to do any of the foregoing, or
enter into any contract, agreement, commitment or arrangement to do any of the
foregoing; or

 

(xix)         except
as specified in the second sentence of this Section 4.7, enter into new
hedging arrangements or terminate or modify existing hedging arrangements.

 

Section 4.8            Conduct of Parent and Sub.  From the date of this Agreement through
the Closing, neither Parent nor Sub shall:

 

(i)            permit
Sub to cease being a wholly-owned direct Subsidiary of Parent;

 

(ii)           take any
action that would reasonably be expected to result in any of the conditions set
forth in Section 5.2 or 5.1 not being satisfied in a timely manner as
contemplated by this Agreement; or

 

33

 

(iii)          authorize,
recommend, propose or announce an intention to do any of the foregoing, or
enter into any contract, agreement, commitment or arrangement to do any of the
foregoing.

 

Section 4.9            Public
Announcements.  Parent and the
Company shall consult with each other before issuing any press release or
otherwise making any public statements with respect to the transactions
contemplated by this Agreement, and shall not issue any such press release or
make any such public statement prior to reaching mutual agreement on the
language of such press release or such public statement, except as may
otherwise be required by applicable law, regulation or stock exchange rule.

 

Section 4.10         No
Solicitation.

 

(a)           It
is understood and agreed that the Company, together with Citigroup, will
continue the Company’s auction process for the Company’s assets (the “Asset
Auction”) until November 30, 2005. 
From and after December 1, 2005, however, the Company shall not,
nor shall it permit any of its Subsidiaries to, nor shall it authorize or
permit any officer, director or employee of or any investment banker, attorney,
accountant, agent or other advisor or representative of the Company or any of
its Subsidiaries to, (i) solicit, initiate, encourage or take any other
action for the purpose of facilitating (including by way of furnishing or
disclosing information), any Takeover Proposal (as defined below), (ii) except
to the extent permitted by this Section 4.10, enter into any agreement,
arrangement or understanding (including any letter of intent, agreement in
principle, memorandum of understanding or confidentiality agreement) with
respect to any Takeover Proposal or requiring the Company to abandon, terminate
or fail to consummate, or which is intended to or would reasonably be expected
to result in the abandonment or termination of, or failure to consummate, the
Merger or any other transaction contemplated by this Agreement, (iii) initiate
or participate in any discussions or negotiations regarding, or furnish to any
Person any information with respect to, or take any other action to facilitate
or in furtherance of any inquiries or the making of any proposal that
constitutes, or may reasonably be expected to lead to, any Takeover Proposal or
(iv) grant any waiver or release under any standstill or similar agreement
with respect to a class of the equity securities of the Company; provided,
however, that prior to the Company Stockholders’ Meeting, in response to
a bona fide unsolicited Takeover Proposal (or a bona fide Takeover Proposal
received pursuant to the Asset Auction) received after the date hereof that the
Board of Directors of the Company believes in good faith (after consultation
with outside counsel and with the Company Financial Advisor or another
financial advisor of nationally recognized reputation) constitutes or would
reasonably be expected to result in a Superior Proposal (as defined in Section 4.10(b)),
and which Takeover Proposal was not, directly or indirectly, the result of a
breach of this Section 4.10, and to the extent required by the fiduciary
obligations of the Board of Directors of the Company, as determined in good
faith by a majority of the disinterested members thereof after receiving the
advice of outside counsel, the Company and any of its officers, directors,
employees, investment bankers, attorneys, accountants, agents or other advisors
or representatives may, (A) participate in discussions or negotiations
with the Person making such Takeover Proposal regarding such Takeover Proposal,
or (B) furnish information pursuant to an appropriate confidentiality
agreement (no less restrictive to the Person making such Takeover Proposal than
the confidentiality agreement dated January 31, 2005, between CW Capital
Investments LLC and the Company (the “Confidentiality Agreement”)).  Without limiting the

 

34

 

foregoing, it is
understood that any violation of the restrictions set forth in the preceding
sentence by any officer, director or employee of or any investment banker,
attorney, accountant, agent or other advisor or representative of the Company
or any of its Subsidiaries, whether or not such Person is purporting to act on
behalf of the Company, shall be deemed to be a breach of this paragraph by the
Company.  For all purposes of this
Agreement, “Takeover Proposal” means any inquiry, proposal or offer,
other than a proposal by Parent or Sub, for a merger, consolidation, share
exchange, business combination or other similar transaction involving the
Company or any of its Subsidiaries or any inquiry, proposal or offer
(including, without limitation, any proposal or offer to stockholders of the
Company), other than a proposal or offer by Parent or Sub, to acquire in any
manner, directly or indirectly, a significant equity interest in, a significant
amount of any voting securities of, or a substantial portion of the assets of,
the Company or any of its Subsidiaries. 
Other than in connection with the Asset Auction, the Company shall
immediately cease and cause to be terminated all existing discussions or
negotiations with any Persons conducted heretofore with respect to, or that
could reasonably be expected to lead to, any Takeover Proposal.

 

(b)           Neither
the Board of Directors of the Company nor any committee thereof shall (i) withdraw
or modify, or propose to withdraw or modify, in a manner adverse to Parent or
Sub, the approval, recommendation or declaration of advisability by the Board
of Directors of the Company or any such committee of this Agreement or the
Merger or (ii) approve or recommend, or propose to approve or recommend,
any Takeover Proposal.  Notwithstanding
the foregoing, the Board of Directors of the Company may (A) approve or
recommend a Superior Proposal and/or (B) withdraw or modify its approval
or recommendation or declaration of advisability of this Agreement or the
Merger (the “Company Recommendation”), in each case as provided in Section 4.10(f).  For all purposes of this Agreement, “Superior
Proposal” means a bona fide written Takeover Proposal that is not solicited
by, or the result of any solicitation by, the Company, any of its Subsidiaries
or by any of their respective officers, directors, employees, investment
bankers, attorneys, accountants, agents or other advisors or representatives
after the date hereof (other than as permitted by Section 4.10(a)), made
by a third party to acquire the Company pursuant to a tender or exchange offer,
a merger, consolidation or business combination, a share exchange, a sale of
all or substantially all its assets or otherwise (x) on terms which a
majority of the disinterested members of the
Board of Directors of the Company determines in their good faith judgment
(based on the opinion of independent financial advisors that the value of the
consideration provided for in such Takeover Proposal (after giving effect to
the payment of the Expenses (as defined in Section 4.11(c)), exceeds the
value of the consideration provided for in the Merger) to be more favorable to
the Company and its stockholders than the Merger, (y) which is reasonably
likely to be consummated (taking into account, among other things, all legal,
financial, regulatory and other aspects of the proposal, including any
conditions, and the identity of the offeror) and (z) for which financing,
to the extent required, is then fully committed or which, in the good faith
judgment of a majority of such disinterested members (based on the advice of
independent financial advisors), is reasonably capable of being financed by
such third party.  If, to the extent
permitted by this Section 4.10(b), the Board of Directors of the Company
(including a majority of the disinterested directors) approves or recommends a
Superior Proposal, the Company may take appropriate action to render the Rights
inapplicable to such Superior Proposal.

 

35

 

(c)           The
Company, promptly (and in any event within 48 hours of the date of receipt
thereof), shall advise Parent orally and in writing of any Takeover Proposal or
any inquiry with respect to or which could reasonably be expected to lead to
any Takeover Proposal, the material terms and conditions of such Takeover
Proposal or inquiry and the identity of the Person making any such Takeover
Proposal or inquiry and the Company shall promptly provide to Parent copies of
any written materials received by the Company in connection with any of the
foregoing.  The Company will keep Parent
reasonably informed of the status and the material terms and conditions
(including amendments and proposed amendments) of any such Takeover Proposal or
inquiry.  Parent and Sub shall waive any
applicable confidentiality provisions to the extent necessary to allow the
Company to explain the terms of this transaction to each Person, if any, making
a Takeover Proposal.

 

(d)           If,
prior to the Company Stockholders’ Meeting, the Company receives a Takeover
Proposal which (i) constitutes a Superior Proposal or (ii) which a
majority of the disinterested members of the Company’s Board of Directors in
good faith concludes proposes consideration that is more favorable to the
Company’s stockholders than the transactions contemplated by this Agreement and
which could reasonably be expected to result in a Superior Proposal in all
other respects, it shall promptly, but in any event in less than two business
days, provide to Parent written notice that shall state expressly (A) that
it has received a Takeover Proposal which constitutes a Superior Proposal or
which could reasonably be expected to result in a Superior Proposal, and (B) the
identity of the party making such Takeover Proposal and the material terms and
conditions of the Takeover Proposal (the “Superior Proposal Notice”).

 

(e)           For
a period of not less than five business days after receipt by Parent from the
Company of each Superior Proposal Notice (other than pursuant to the Asset
Auction), the Company shall, if requested by Parent, negotiate in good faith
with Parent to permit Parent to improve the terms and conditions of this
Agreement (from the viewpoint of the Company and its stockholders) so that the
Company would be able to proceed with the Company Recommendation to its
stockholders without making a change of recommendation.

 

(f)            Notwithstanding
any other provision of this Agreement, in response to the receipt of a Superior
Proposal that has not been withdrawn and continues to constitute a Superior
Proposal after compliance by the Company with Section 4.10(e), the Board
of Directors of the Company may withhold or withdraw the Company Recommendation
and, in the case of a Superior Proposal that is a tender or exchange offer made
directly to its stockholders, may recommend that its stockholders accept the
tender or exchange offer (any of the foregoing actions, whether by the Board of
Directors or a committee thereof, a “Change of Recommendation”), if both
of the following conditions are met:

 

(i)                                     the
Company Stockholders’ Meeting has not occurred; and

 

(ii)                                  a
majority of the disinterested members of the Board of Directors of the Company
has concluded in good faith, following consultation with its outside legal
counsel, that, in light of such Superior Proposal, the failure of the Board of
Directors to effect a Change of Recommendation would result in a breach of its
fiduciary obligations to its stockholders under applicable Law.

 

36

 

Section 4.11         Fees
and Expenses.

 

(a)           Except
as provided in Section 4.11(b), whether or not the Merger is consummated,
all costs and expenses incurred in connection with this Agreement and the
transactions contemplated hereby including the fees and disbursements of
counsel, financial advisors and accountants, shall be paid by the party
incurring such costs and expenses.

 

(b)           Provided
that neither Parent nor Sub is in material breach of its representations,
warranties or agreements under this Agreement, (i) if this Agreement is
terminated by the Company pursuant to Section 6.1(e) or 6.1(g), (ii) if
this Agreement is terminated by Parent pursuant to Section 6.1(e) or (f) or
(iii) if (A) after the date of this Agreement, (x) any Person or
“group” (within the meaning of Section 13(d)(3) of the
Exchange Act) shall have publicly made or otherwise communicated to the Board
of Directors of the Company a bona fide Takeover Proposal or (y) it shall
have been publicly disclosed that any Person or “group” has beneficial
ownership (determined for the purpose of this paragraph as set forth in Rule 13d-3
promulgated under the Exchange Act) of more than 15% of the outstanding shares
of the Company Common Stock or (z) Parent has the right to terminate this
Agreement under Section 6.1(f) because the Board of Directors of the
Company shall or shall resolve to take any action referred to therein, (B) the
stockholders of the Company do not approve the Merger at the Company
Stockholders’ Meeting called for such purpose pursuant to Section 5.1(a) or
this Agreement is terminated pursuant to Section 6.1(d) prior to the
Company Stockholders’ Meeting being held and (C) a Takeover Proposal is
consummated within 12 months after the Company Stockholders’ Meeting or such termination,
as the case may be, then, in the case of clauses (i), (ii) or (iii) of
this Section 4.11(b), the Company shall pay to Parent in same-day funds
(notwithstanding paragraph (a) of this Section 4.11) all the
Expenses, on the date of such termination, in the case of clause (i) or (ii) of
this Section 4.11(b), or on the date of the consummation of such Takeover
Proposal, in the case of clause (iii) of this Section 4.11(b).

 

(c)           “Expenses”
means the amount in cash necessary to permit Parent fully to reimburse itself
and Sub and their Affiliates for all reasonable third-party out-of-pocket fees
and expenses incurred at any time prior to the termination of this Agreement by
any of them or on their behalf in connection with the proposed acquisition of the
Company, the Merger, the preparation of this Agreement and the transactions
contemplated by this Agreement, including all fees and expenses of counsel,
investment banking firms, financial advisors, accountants, experts and
consultants to Parent and Sub or any of their Affiliates, all as shown in a
reasonably detailed, itemized statement to be furnished by Parent to the
Company; provided, however, that the Expenses (i) shall not
exceed $2 million and (ii) shall not include any costs of any hedging
transactions entered into by Parent, Sub or any of their Affiliates.

 

(d)           In
the event that the Expenses become payable by the Company (i) pursuant to Section 4.11(b)(i),
but only as a result of a termination of this Agreement on or after January 1,
2006, (ii) pursuant to Section 4.11(b)(ii), but only as a result of a
termination of this Agreement on or after January 1, 2006, pursuant to Section 6.1(f),
or (iii) pursuant to Section 4.11(b)(iii), but only as a result of a
termination of this Agreement on or after January 1, 2006, then, in
addition to such Expenses, the Company shall pay to Parent $8 million in
same-day funds on the date of such termination, in the case of clause (i) or
(ii) of this Section 4.11(d), or on

 

37

 

the date of the
consummation of the Takeover Proposal referred to in Section 4.11(b)(iii)(C),
in the case of clause (iii) of this Section 4.11(d).

 

Section 4.12         State
Takeover Laws.  If any Takeover
Statute shall become applicable to the transactions contemplated hereby,
Parent, Sub and the Company and their respective Board of Directors shall use
all reasonable efforts to grant such approvals and take such actions as are
necessary so that the transactions contemplated hereby may be consummated as promptly
as practicable on the terms contemplated hereby and shall otherwise act to
minimize the effects of any such statute or regulation on the transactions
contemplated hereby.

 

Section 4.13         Rights
Agreement.  The Board of
Directors of the Company shall take all further actions (in addition to that
referred to in Section 2.17) (including amending the Rights Agreement), if
any, necessary to render the Rights inapplicable to the Merger and the other
transactions contemplated by this Agreement.

 

Section 4.14         Certain
Tax Matters.

 

(a)           Definitions.  Where used in this Agreement, the following
terms shall have the following meanings:

 

“Code”
shall mean the Internal Revenue Code of 1986.

 

“Tax” (and, with
correlative meaning, “Taxes”) shall mean any federal, state, local or
foreign income, gross receipts, property, sales, use, license, excise,
environmental (including taxes under Code Section 59A), stamp, franchise,
employment, payroll, withholding, alternative or add-on minimum, ad valorem,
value added, transfer or excise tax, or any other tax, custom, duty,
governmental fee or other like assessment or charge of any kind whatsoever,
together with any interest or penalty, imposed by any Governmental Entity.  For purposes of this Agreement, “Taxes” also
includes any obligations under any agreements or arrangements with any person
with respect to the liability for, or sharing of, Taxes (including pursuant to
Treasury Regulations Section 1.1502-6 or comparable provisions of state,
local or foreign Tax law) and including any liability for Taxes as a transferee
or successor, by contract or otherwise.

 

“Tax Return” shall
mean any return, report or similar statement required to be filed with respect
to any Tax (including any attached schedules), including any information return,
claim for refund, amended return or declaration of estimated Tax.

 

(b)           Excise
Taxes.  Notwithstanding anything
herein to the contrary, Parent shall pay, and shall indemnify the stockholders
of the Company against, any real property transfer Tax, sales Tax, use Tax,
stamp Tax, stock transfer Tax or other similar excise Tax imposed on the
transactions contemplated by this Agreement.

 

(c)           Tax
Returns.  (i) The Company shall
file or cause to be filed when due (taking into account all properly obtained
extensions) all Tax Returns that are required to be filed by or with respect to
the Company and each Subsidiary on or before the Closing Date and shall remit
or cause to be remitted any Taxes due in respect of such Tax Returns and shall
furnish copies of such Tax Returns as filed to Parent; provided, however,
all such Tax Returns shall be prepared in a manner consistent with the prior
Tax Returns of the Company, unless otherwise

 

38

 

required by Law;
and (ii) Parent shall file or cause to be filed when due (taking into
account all properly obtained extensions) all Tax Returns that are required to
be filed by or with respect to the Company and each Subsidiary after the
Closing Date and shall remit or cause to be remitted any Taxes due in respect
of such Tax Returns.

 

(d)           Tax
Contests.  The Company shall have the
sole right to represent the Company’s and each Subsidiary’s interests in any
Tax audit or examination or administrative or court proceeding taking place on
or before the Closing Date, and to employ counsel of its choice at its
expense.  The Company shall promptly
notify Parent of the Company’s receipt of notice of any such Tax audit or
examination or administrative or court proceeding.

 

(e)           REIT
Qualification of CBO REIT II, Inc. 
So long as any bonds issued by trusts formed by subsidiaries of CBO REIT
II, Inc. under the indentures dated May 8, 1998, and December 20,
1996, respectively, remain outstanding, Parent, Sub and the Company shall, and
each of them is hereby authorized to, take all actions necessary to continue at
all times before and after the Closing Date the qualification of CBO REIT II, Inc.
as a REIT for U.S. federal income tax purposes (including complying with all
applicable distribution requirements to maintain REIT qualification at all
times and making a new REIT election for CBO REIT II, Inc. following the
Closing Date, if doing so is required to continue such REIT qualification).

 

Section 4.15         Observer
Rights.  Between the date of this
Agreement and the Closing Date, the Company shall permit at least one but no
more than three representatives designated by Parent to attend and observe, on
a non-voting basis, all meetings and other proceedings of CMSLP’s credit
committee.

 

ARTICLE V.

CONDITIONS

 

Section 5.1            Conditions
to each Party’s Obligation to Effect the Merger.  The respective obligation of each of
Parent, Sub and the Company to effect the Merger shall be subject to the
satisfaction prior to the Closing Date of each of the following conditions:

 

(a)           Stockholder
Approval.  The stockholders of the
Company shall have approved the Merger in accordance with Section 3-105(e) of
the MGCL.

 

(b)           Consents.   All necessary material consents and
approvals of any Governmental Entity required for the consummation of the
transactions contemplated by this Agreement, if any, shall have been obtained.

 

(c)           No
Order.  No court or other
Governmental Entity having jurisdiction over the Company, Parent or Sub, or any
of their respective Subsidiaries, shall have enacted, issued, promulgated,
enforced or entered any Law or Order which is then in effect and has the effect
of making the Merger illegal or otherwise restricting the Closing or any
provision of the Articles of Merger.

 

39

 

Section 5.2            Conditions
to the Company’s Obligations. 
The obligation of the Company to effect the Merger shall be subject to
the fulfillment (or waiver by the Company) at or prior to the Closing Date of
each of the following conditions:

 

(a)           Performance
of Obligations.  Parent and Sub shall
have performed in all material respects each of their respective agreements
contained in this Agreement required to be performed at or prior to the
Closing.

 

(b)           Representations
and Warranties.  Each of the
representations and warranties of Parent and Sub contained in this Agreement
shall be true and correct at and as of the Closing Date as if made at and as of
such date (other than representations and warranties that address matters only
as of a certain date, which shall be true and correct as of such certain date),
other than as would not result in a material adverse effect on the ability of
Parent or Sub timely to consummate the transactions contemplated hereby.

 

(c)           Officer’s
Certificate.  A certificate executed
on behalf of Parent by a senior executive officer of the Parent, to the effect
that the conditions set forth in paragraphs (a) and (b) above have
been satisfied, shall have been delivered to the Company.

 

Section 5.3            Conditions
to the Parent’s and Sub’s Obligations.  The obligation of Parent and Sub to effect the
Merger shall be subject to the fulfillment (or waiver by Parent and Sub) at or
prior to the Closing Date of each of the following conditions:

 

(a)           Performance
of Obligations.  The Company shall
have performed in all material respects each of its respective agreements
contained in this Agreement required to be performed at or prior to the
Closing.

 

(b)           Representations
and Warranties.  Each of the
representations and warranties of the Company contained in this Agreement shall
be true and correct at and as of the Closing Date as if made at and as of such
date (other than representations and warranties that address matters only as of
a certain date, which shall be true and correct as of such certain date),
except as would not reasonably be expected to result in a Material Adverse
Effect.

 

(c)           Material
Adverse Effect.  Since the date of
this Agreement, there shall have occurred no changes, events or developments
which, individually or in the aggregate, have had, or would reasonably be
expected to have, a Material Adverse Effect.

 

(d)           Consents.  Parent shall have received evidence, in form
and substance reasonably satisfactory to it, that the Company and its
Subsidiaries have obtained all material consents, authorizations, Orders,
approvals, waivers and exemptions of Governmental Entities required, if any, in
connection with this Agreement and the transactions contemplated hereby.

 

(e)           Officer’s
Certificate and Updated Schedule.  A
certificate executed on behalf of the Company by a senior executive officer of
the Company to the effect that the conditions set forth in paragraphs (a), (b) and
(c) above have been satisfied shall have been delivered to Parent.  The Company shall have delivered to Parent an
updated Schedule 2.15 of

 

40

 

the Company Letter
setting forth thereon the information required by Section 2.15 as of a
date not more than three days prior to the Closing Date.

 

(f)            No
Litigation.  There shall not be
pending or threatened any suit, action or proceeding by any Governmental
Entity:  (i) challenging the
acquisition by Parent and Sub of any Shares, seeking to restrain or prohibit
the consummation of the Merger, or seeking to place limitations on the
ownership of Shares by Parent or seeking to obtain from the Company, Parent or
Sub any damages that are material in relation to the Company, (ii) seeking
to prohibit or materially limit the ownership or operation by the Company,
Parent or any of their respective Subsidiaries or Affiliates of any portion of
any business or of any assets of the Company, Parent or any of their respective
Subsidiaries, or to compel the Company, Parent or any of their respective
Subsidiaries to divest or hold separate any portion of any business or of any
assets of the Company, Parent or any of their respective Subsidiaries, as a
result of the merger, (iii) seeking to prohibit Parent or any of its
Subsidiaries from effectively controlling in any material respect the business or
operations of the Company or any of its Subsidiaries or (iv) otherwise
constituting a Material Adverse Effect, in each case except as would not
reasonably be expected to result in a Material Adverse Effect.

 

(g)           Tax
Opinion.  Parent shall have received (i) a
tax opinion, dated as of the Closing Date, from Sidley Austin Brown &
Wood LLP, substantially in the form of Schedule 5.3(g) of the
Company Letter, and (ii) another tax opinion, dated as of the Closing
Date, from Sidley Austin Brown & Wood LLP, in form and substance
reasonably satisfactory to Parent’s United States tax counsel, to the effect
that, based on customary representations of the Company concerning the
ownership, activities, distributions and investments of the Company and CBO
REIT II, Inc. and certain undertakings of the Company with respect to its
using the deficiency dividend procedures of Section 860 of the Code in
certain contingencies: (x) each of the Company and CBO REIT II, Inc., as
of the Closing Date, is qualified as a REIT within the meaning of Section 856(a) of
the Code and, in the case of the Company, has qualified as a REIT since January 27,
2004, and, in the case of CBO REIT II, has qualified as a REIT since its
formation as a state law corporation; and (y) except for CBO REIT II, Inc.
and Subsidiaries which are treated as disregarded entities for federal income
tax purposes, each Subsidiary of the Company, as of the Closing Date, is
treated as a QRS within the meaning of Section 856(i) of the Code or
a TRS within the meaning of Section 856(l) of the Code as set forth in Schedule 2.8(e) of
the Company Letter and each has qualified as a QRS or TRS since January 27,
2004.

 

(h)           Tax
Certificate.  The Company shall have
delivered to Parent a certificate dated the Closing Date and sworn under
penalty of perjury stating that it is not a “United States real property
holding corporation” within the meaning of Section 897(c)(2) of the
Code, and in form and substance required under Treasury Regulations 1.897-2(h).

 

Section 5.4            Frustration
of Closing Conditions.  None of
the parties hereto may rely on the failure of any condition set forth in this Article V
to be satisfied if such failure was caused by such party’s failure to act in
good faith or its breach of the covenants contained in this Agreement.

 

41

 

ARTICLE VI.

GENERAL

 

Section 6.1            Termination.  This Agreement may be terminated at any time
prior to the Effective Time, whether before or after approval of any matters
presented in connection with the Merger by the stockholders of the Company:

 

(a)           by
mutual written consent of Parent and the Company;

 

(b)           (i)  by
either Parent or the Company if there has been a material breach of the
covenants and agreements set forth in this Agreement on the part of Parent or
Sub, in the case of a termination by the Company, or the Company, in the case
of a termination by Parent, which breach has not been cured within ten business
days following receipt by the breaching party of notice of such breach from the
non-breaching party;

 

(ii)           by
Parent if there has been a breach of representation or warranty of the Company
set forth in this Agreement, other than as would not be reasonably expected to
have a Material Adverse Effect, which breach has not been cured within ten
business days following receipt by the Company of notice of such breach from
Parent;

 

(iii)          by
the Company if there has been a breach of representation or warranty of Parent
or Sub set forth in this Agreement, other than as would not be reasonably expected
to have a material adverse effect on the ability of Parent or Sub to timely
consummate the transactions contemplated hereby, which breach has not been
cured within ten business days following receipt by Parent or Sub of notice of
such breach from the Company;

 

(c)           by
either Parent or (if the Company has not violated Section 4.1, 4.2 or
4.10) the Company if (i) any Law permanently preventing the consummation
of the Merger shall be in effect or (ii) any permanent Order, decree,
ruling or other action of a court or other competent authority restraining,
enjoining or otherwise preventing the consummation of the Merger shall have
become final and non-appealable;

 

(d)           by
either the Parent or the Company if the Merger shall not have been consummated
before March 31, 2006, unless the failure to consummate the Merger is
caused by or the result of a material breach of this Agreement by the party
seeking to terminate this Agreement (or by Sub, in the case of a termination by
Parent); provided, however, that the passage of such period shall
be tolled for any part thereof during which any party shall be subject to a
non-final Order, decree, ruling or other action restraining, enjoining or
otherwise preventing the consummation of the Merger;

 

(e)           by
either Parent or (if the Company has not violated Section 4.1, 4.2 or 4.10
and has paid to Parent an amount in cash equal to all amounts payable pursuant
to Section 4.11(b)) the Company if any required approval of the Merger by
the stockholders of the Company shall not have been obtained by reason of the
failure to obtain the required vote upon a vote held at a duly held meeting of
such stockholders or at any adjournment thereof;

 

42

 

(f)            by
Parent if the Board of Directors of the Company shall or shall resolve to (i) not
recommend, or withdraw its approval or recommendation of, the Merger, this
Agreement or any of the transactions contemplated hereby, (ii) modify such
approval or recommendation in a manner adverse to Parent or Sub or (iii) approve
or recommend a Superior Proposal pursuant to Section 4.10(b); and

 

(g)           by
the Company if (i) (x) to the extent permitted by Section 4.10(b),
the Board of Directors of the Company approves or recommends a Superior
Proposal or withdraws its approval or recommendation of this Agreement or the
Merger and (y) the Company concurrently enters into a definitive agreement
with respect to such Superior Proposal with the Person making such Superior
Proposal and (ii) the Company has paid to Parent an amount in cash equal
to all amounts payable pursuant to Section 4.11.

 

In the event of termination of this Agreement by
either Parent or the Company, as provided in this Section 6.1, this
Agreement shall forthwith become void and there shall be no liability hereunder
on the part of Parent, Sub or the Company, or their respective officers,
directors, managers, members or partners, except for (i) liability under Section 2.29
(Brokers), Section 3.6 (Brokers), Section 3.5 (Investigation), Section 4.11
(Fees and Expenses), this Section 6.1 and the other sections of Article VI
(all of which shall survive the termination) and (ii) nothing set forth in
this Agreement shall relieve any party from liability or damages resulting from
any willful breach of this Agreement.

 

Section 6.2            Non-Survival
of Representations and Warranties. 
The representations and warranties in this Agreement or in any
instrument delivered pursuant to this Agreement shall terminate at the earlier
of (i) the Effective Time and (ii) except as expressly provided in
the last paragraph of Section 6.1, the termination of this Agreement.

 

Section 6.3            Notice.  Any notice hereunder shall be deemed given
only when such notice is in writing and is delivered by messenger or courier
or, if sent by fax, when received.  All
notices, requests and other communications hereunder shall be delivered by
courier or messenger or shall be sent by facsimile to the following addresses:

 

	
   

  	
  (i)

  	
  If to the Parent or
  Sub, at the following address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Cadim

  
	
   

  	
   

  	
  1000 Place Jean Paul Riopelle

  
	
   

  	
   

  	
  Suite A-300

  
	
   

  	
   

  	
  Montreal (Quebec)

  
	
   

  	
   

  	
  H2Z 2B6, Canada

  
	
   

  	
   

  	
  Facsimile: (514) 875-3327

  
	
   

  	
   

  	
  Attention: Corporate Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy by facsimile or messenger or courier to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Proskauer Rose
  LLP

  
	
   

  	
   

  	
  1585 Broadway

  
	
   

  	
   

  	
  New York, NY
  10036

  

 

43

 

	
   

  	
   

  	
  Facsimile:
  (212) 969-2900

  
	
   

  	
   

  	
  Attention: Allan
  R. Williams

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  If to the Company, at
  the following address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CRIIMI MAE Inc.

  
	
   

  	
   

  	
  11200 Rockville Pike

  
	
   

  	
   

  	
  Rockville, Maryland 20852

  
	
   

  	
   

  	
  Facsimile: (301) 255-4714

  
	
   

  	
   

  	
  Attention: General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy by facsimile or messenger or courier to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Sidley Austin Brown & Wood LLP

  
	
   

  	
   

  	
  787 Seventh Avenue

  
	
   

  	
   

  	
  New York, New York 10019

  
	
   

  	
   

  	
  Facsimile: (212) 839-5599

  
	
   

  	
   

  	
  Attention: Joseph W. Armbrust

  

 

or to such other respective addresses as may be
designated by notice given in accordance with this Section 6.3.

 

Section 6.4            Complete
Agreement; No Third-Party Beneficiaries.  This Agreement, the Articles of Merger and
the Company Letter constitute the entire agreement among the parties pertaining
to the subject matter hereof and supersede all prior agreements and
understandings of the parties in connection therewith.  Except as specified in Section 4.5, this
Agreement is not intended to confer upon any Person other than the Company,
Parent and Sub any rights or remedies hereunder.

 

Section 6.5            GOVERNING
LAW.  EXCEPT TO THE EXTENT THAT
THE MGCL GOVERNS THE EFFECTS OF THE MERGER, THIS AGREEMENT SHALL BE CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO ITS PRINCIPLES OF CONFLICTS OF LAWS.  PARENT, SUB AND THE COMPANY HEREBY CONSENT TO
THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE FEDERAL COURTS LOCATED
IN THE BOROUGH OF MANHATTAN WITH RESPECT TO ANY ACTION, SUIT OR PROCEEDING
BROUGHT TO ENFORCE ANY PROVISION OF THIS AGREEMENT OR TO DETERMINE THE RIGHTS
OF ANY PARTY HERETO.

 

Section 6.6            No
Assignment.  Neither this
Agreement nor any rights or obligations under it are assignable by any party
without the written consent of the other parties.

 

Section 6.7            Headings.  The descriptive headings of the articles,
sections and subsections of this Agreement are for convenience only and do not
constitute a part of this Agreement.

 

Section 6.8            Counterparts.  This Agreement may be executed in one or more
counterparts and by different parties in separate counterparts.  All such counterparts shall

 

44

 

constitute one and
the same agreement and shall become effective when one or more counterparts
have been signed by each party and delivered to the other party.

 

Section 6.9            Interpretation.  The word “including”, when used
herein, shall be deemed to mean “including, without limiting the generality
of the foregoing”.  When a reference
is made in this Agreement to an Article, a Section or an Exhibit, such
reference shall be to an article of this Agreement, a section of this
Agreement or an Exhibit attached to this Agreement, respectively, unless
otherwise indicated.

 

Section 6.10         Remedies;
Waiver.  All rights and remedies
existing under this Agreement are cumulative to, and not exclusive of, any
rights or remedies otherwise available. 
No failure on the part of any party to exercise or delay in exercising
any right hereunder shall be deemed a waiver thereof, nor shall any single or
partial exercise preclude any further or other exercise of such or any other
right.  Notwithstanding any other
provision of this Agreement, it is understood and agreed that remedies at law
would be inadequate in the case of any breach of the covenants contained in
this Agreement.  The Company, Parent and
Sub shall be entitled to equitable relief, including the remedy of specific
performance, with respect to any breach or attempted breach of such covenants
by any other party.

 

Section 6.11         Confidentiality.  The parties agree that any information
heretofore or hereafter provided by the Company to Parent or Sub shall, until
the Effective Date, be subject to the confidentiality provisions of the
Confidentiality Agreement, and until the Effective Date Parent and Sub agree to
keep such information confidential to the extent required by such
confidentiality provisions, without giving effect to the termination provisions
of such agreement. 

 

Section 6.12         Severability.  Any invalidity, illegality or
unenforceability of any provision of this Agreement in any jurisdiction shall
not invalidate or render illegal or unenforceable the remaining provisions
hereof in such jurisdiction and shall not invalidate or render illegal or
unenforceable such provisions in any other jurisdiction.  The Company and the Parent and Sub shall
endeavor in good faith negotiations to replace any invalid, illegal or
unenforceable provision with a valid, legal and enforceable provision, the
economic effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provision.

 

Section 6.13         Amendment;
Waiver.  This Agreement may be
amended only by agreement in writing of all parties.  No waiver of any provision nor consent to any
exception to the terms of this Agreement shall be effective unless in writing
and signed by the party to be bound and then only to the specific purpose,
extent and instance so provided.

 

45

 

IN WITNESS WHEREOF, Parent, Sub and the Company have
caused this Agreement to be signed by their respective officers thereunto duly
authorized all as of the date first written above.

 

 

	
   

  	
  CDP
  CAPITAL-FINANCING INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Line Lefbvre

  	
   

  
	
   

  	
   

  	
  Name:  Line Lefbvre

  
	
   

  	
   

  	
  Title:  Executive Vice President and Chief
  Financial

  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marisa
  Giannetti

  	
   

  
	
   

  	
   

  	
  Name:  Marisa Giannetti

  
	
   

  	
   

  	
  Title:  Senior Director - Legal Affairs

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CADIM W.F. CO.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Line Lefbvre

  	
   

  
	
   

  	
   

  	
  Name:  Line Lefbvre

  
	
   

  	
   

  	
  Title:  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marisa
  Giannetti

  	
   

  
	
   

  	
   

  	
  Name:  Marisa Giannetti

  
	
   

  	
   

  	
  Title:  Senior Director - Legal Affairs

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CRIIMI MAE INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Barry S.
  Blattman

  	
   

  
	
   

  	
   

  	
  Name:  Barry S. Blattman

  
	
   

  	
   

  	
  Title:  Chairman and Chief Executive Officer

  

 

 

INDEX OF DEFINED TERMS

 

	
  Affiliate

  	
   

  	
  Section 2.17

  
	
  Agreement

  	
   

  	
  Preamble

  
	
  Articles of
  Merger

  	
   

  	
  Section 1.1

  
	
  Asset Auction

  	
   

  	
  Section 4.10(a)

  
	
  BREF ONE

  	
   

  	
  Recitals

  
	
  Capital Stock

  	
   

  	
  Section 2.2(a)

  
	
  Cash Amount

  	
   

  	
  Section 1.7(a)

  
	
  Certificates

  	
   

  	
  Section 1.10(b)

  
	
  Change of
  Recommendation

  	
   

  	
  Section 4.10(f)

  
	
  Citigroup

  	
   

  	
  Section 2.26

  
	
  Closing

  	
   

  	
  Section 1.3

  
	
  Closing Date

  	
   

  	
  Section 1.3

  
	
  CMSLP

  	
   

  	
  Section 2.13(b)

  
	
  Code

  	
   

  	
  Section 4.14(a)

  
	
  Company

  	
   

  	
  Preamble

  
	
  Company
  AuthorizationsS

  	
   

  	
  Section 2.14(a)

  
	
  Company Balance
  Sheet Date

  	
   

  	
  Section 2.5

  
	
  Company Business
  Entity

  	
   

  	
  Section 2.4(a)

  
	
  Company Common
  Stock

  	
   

  	
  Recitals

  
	
  Company Employee
  Benefit Plans

  	
   

  	
  Section 2.18(a)

  
	
  Company
  Employees

  	
   

  	
  Section 4.4(a)

  
	
  Company
  Financial Advisor

  	
   

  	
  Section 2.26

  
	
  Company
  Insurance Policies

  	
   

  	
  Section 2.
  24

  
	
  Company
  Intellectual Property

  	
   

  	
  Section 2.11(a)

  
	
  Company
  Investments

  	
   

  	
  Section 2.20

  
	
  Company Letter

  	
   

  	
  Article II

  
	
  Company
  Recommendation

  	
   

  	
  Section 4.10(b)

  
	
  Company SEC
  Reports

  	
   

  	
  Section 2.22(a)

  
	
  Company
  Stockholders’ Meeting

  	
   

  	
  Section 4.2(a)

  
	
  Company Stock
  Options

  	
   

  	
  Section 1.9(a)

  
	
  Company Stock
  Option Plans

  	
   

  	
  Section 1.9(a)

  
	
  Confidentiality
  Agreement

  	
   

  	
  Section 4.10(a)

  
	
  Constituent
  Corporations

  	
   

  	
  Section 1.1

  
	
  ContractsS

  	
   

  	
  Section 2.13(a)

  
	
  Deferred
  Compensation Plan

  	
   

  	
  Section 1.9(b)

  
	
  Department

  	
   

  	
  Section 1.2

  
	
  Effective Time

  	
   

  	
  Section 1.2

  
	
  Environmental
  Law

  	
   

  	
  Section 2.19

  
	
  ERISA

  	
   

  	
  Section 2.18(a)

  
	
  ERISA Affiliate

  	
   

  	
  Section 2.18(a)

  
	
  Exchange Act

  	
   

  	
  Section 2.3

  
	
  Expenses

  	
   

  	
  Section 4.11(c)

  
	
  GAAP

  	
   

  	
  Section 2.5

  
	
  Governmental
  Entity

  	
   

  	
  Section 2.3

  

 

1

 

	
  Grant of a Proxy

  	
   

  	
  Section 2.17

  
	
  Knowledge of the
  Company

  	
   

  	
  Section 2.2(c)

  
	
  Law

  	
   

  	
  Section 2.3

  
	
  Leases

  	
   

  	
  Section 2.12(a)

  
	
  Liens

  	
   

  	
  Section 2.2(b)

  
	
  Material Adverse
  Effect

  	
   

  	
  Section 2.1(a)

  
	
  Merger

  	
   

  	
  Recitals

  
	
  MGCL

  	
   

  	
  Section 1.1

  
	
  NYSE

  	
   

  	
  Section 2.3

  
	
  Order

  	
   

  	
  Section 2.3

  
	
  Ordinary Course

  	
   

  	
  Section 2.6

  
	
  Parent

  	
   

  	
  Preamble

  
	
  Paying Agent

  	
   

  	
  Section 1.10(a)

  
	
  Payment Fund

  	
   

  	
  Section 1.10(a)

  
	
  Person

  	
   

  	
  Section 2.11(a)

  
	
  Preferred Stock

  	
   

  	
  Section 2.2(a)

  
	
  Proxy Statement

  	
   

  	
  Section 2.28

  
	
  QRS

  	
   

  	
  Section 2.8(e)

  
	
  REIT

  	
   

  	
  Section 2.8(e)

  
	
  Related Person

  	
   

  	
  Section 2.23

  
	
  Rights

  	
   

  	
  Section 2.2(a)

  
	
  Rights Agreement

  	
   

  	
  Section 2.2(a)

  
	
  Sarbanes-Oxley
  Act

  	
   

  	
  Section 2.22(c)

  
	
  SEC

  	
   

  	
  Section 2.5

  
	
  Securities Act

  	
   

  	
  Section 2.2(b)

  
	
  Series B
  Preferred Stock

  	
   

  	
  Section 2.2(a)

  
	
  Series H
  Preferred Stock

  	
   

  	
  Section 2.2(a)

  
	
  Share

  	
   

  	
  Section 1.7(a)

  
	
  Sub

  	
   

  	
  Preamble

  
	
  Subsidiary

  	
   

  	
  Section 1.7(a)

  
	
  Superior
  Proposal

  	
   

  	
  Section 4.10(b)

  
	
  Superior
  Proposal Notice

  	
   

  	
  Section 4.10(d)

  
	
  Surviving
  Corporation

  	
   

  	
  Section 1.1

  
	
  Takeover
  Proposal

  	
   

  	
  Section 4.10(a)

  
	
  Takeover Statute

  	
   

  	
  Section 2.17

  
	
  Tax

  	
   

  	
  Section 4.14(a)

  
	
  Tax Return

  	
   

  	
  Section 4.14(a)

  
	
  Termination
  Agreement

  	
   

  	
  Recitals

  
	
  TRS

  	
   

  	
  Section 2.8(e)

  
	
  Voting Agreement

  	
   

  	
  Recitals

  
	
  Warrant

  	
   

  	
  Section 2.2(a)

  

 

2Exhibit 10.1

 

FOURTH AMENDMENT TO THIRD

AMENDED AND RESTATED CREDIT AGREEMENT

 

This FOURTH AMENDMENT TO THIRD AMENDED AND
RESTATED CREDIT AGREEMENT (hereinafter referred to as the “Amendment”)
executed as of the 30th day of September, 2005, by and among EXCO
RESOURCES, INC., a Texas corporation (the “Company”), EXCO OPERATING,
LP, a Delaware limited partnership (“Operating”), NORTH COAST ENERGY,
INC., a Delaware corporation (“North Coast”) and NORTH COAST ENERGY
EASTERN, INC., a Delaware corporation (“North Coast Eastern”; together
with the Company, Operating and North Coast, the “Borrowers”), JPMORGAN
CHASE BANK, NA (successor by merger BANK ONE, N.A. (Illinois)), a national
banking association (“JPMorgan”), each of the financial institutions
which is a party hereto (as evidenced by the signature pages to this
Amendment) or which may from time to time become a party hereto pursuant to the
provisions of Section 28 of the Third Amended and Restated Credit
Agreement or any successor or assignee thereof (hereinafter collectively
referred to as “Lenders”, and individually, “Lender”), JPMorgan,
as Administrative Agent (“Agent”), BNP PARIBAS, as Syndication Agent,
THE BANK OF NOVA SCOTIA, as Co-Documentation Agent and TORONTO DOMINION,
(TEXAS), INC., as Co-Documentation Agent. 
Capitalized terms used but not defined in this Amendment have the
meanings assigned to such terms in that certain Third Amended and Restated
Credit Agreement dated as of January 27, 2004, by and among the Borrowers,
Agent and the Lenders (as amended, supplemented or otherwise modified from time
to time, the “Credit Agreement”).

 

WITNESSETH:

 

WHEREAS, the Borrowers have
requested that the Agent and the Lenders (i) consent to the acquisition of
the Company by EXCO Holdings II, Inc., a Delaware corporation (“Holdings
II”), and waive any Event of Default arising as a result of such
acquisition, and (ii) amend the Credit Agreement to (1) adjust the restriction
on sales of assets by the Borrowers and the Subsidiary Guarantors and the
required application of the proceeds thereof, and (2) permit the
redemption of the Senior Notes tendered in response to certain offers to redeem
such Senior Notes that the Company is required to make under the terms of the
Indenture governing the Senior Notes; and Agent and the Lenders have agreed to
do so on the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements
herein contained and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged and confessed, the Borrowers,
Agent and the Lenders, hereby agree as follows:

 

SECTION 1.         Amendment
to Credit Agreement.  Subject to the satisfaction or waiver in
writing of each condition precedent set forth in Section 4 hereof,
and in reliance on the representations, warranties, covenants and agreements
contained in this Amendment, the Credit Agreement shall be amended in the
manner provided in this Section 1.

 

1

 

1.1          Additional
Definitions. 
The following definitions shall be and they hereby are added in
alphabetical order to Section 1 of the Credit Agreement:

 

Addison Sale as defined in Section 13(h)(v).

 

Approved Investor means (a) any BP Investor and (b) any Person other than a
BP Investor or the Persons described in clause (a) of the definition of “Miller
Group” to whom Capital Stock of the Borrower are transferred or assigned with
the prior written consent of the Required Lenders, which consent shall not be
unreasonably withheld, conditioned or delayed. 
For the avoidance of doubt, any assignment or transfer of Capital Stock
of the Borrower by any Person to any Person other than a BP Investor or the
Persons described in clause (a) of the definition of “Control Group” is
subject to the foregoing clause (b), including any transferee or assignee of
such Person.

 

BP Investor means, collectively, (a) BP EXCO Holdings LP, a Texas limited
partnership and any other investment fund managed by BP Capital Management LP,
and (b) Boone Pickens,  any
Affiliate of Boone Pickens, any spouse or lineal descendant of Boone Pickens
(whether natural or adopted), the estate of Boone Pickens, and any trust solely
for the benefit of Boone Pickens and/or his spouse and/or lineal descendants.

 

Initial Public Offering means a sale by the Company (or its parent company or successor) of
its common stock in an underwritten (firm commitment) initial public offering
registered under the Securities Act of 1933, with gross proceeds to the Company
(or such parent company or successor) of not less than $500,000,000, resulting
in the listing of the Company’s (or such parent company’s or successor’s) common
stock on a nationally recognized stock exchange, including without limitation,
the NASDAQ National Market System.

 

Fourth Amendment Effective Date means September 30, 2005.

 

Holdings II means EXCO Holdings II, Inc., a Delaware corporation,  and its successors.

 

Holdings Merger means the merger of Holdings II with and into Holdings.

 

IPO Date means the date the Initial Public Offering is consummated.

 

Management Buyout means the acquisition of all of the issued and outstanding Capital
Stock of Holdings by Holdings II pursuant to a certain Stock Purchase Agreement
by and between Holdings II, as purchaser, and the existing holders of the
issued and outstanding Capital Stock of Holdings.

 

Management Buyout Date means the date the Management Buyout is consummated.

 

Miller Group means (a) Douglas H. Miller, Stephen F. Smith, any Affiliate
Controlled by any such Person and any spouse or lineal descendants (whether
natural or adopted) of any such Person and any trust solely for the benefit of
such Person and/or such Person’s spouse and/or lineal descendants and (b) any
Approved Investor.

 

2

 

1.2          Amended
Definition. 
The following definition in Section 1 of the Credit
Agreement shall be and it hereby is amended in its entirety as follows:

 

Change of Control means the following:

 

(a) at any time prior to the Management Buyout Date, (i) any
Person or “group” (within the meaning of Rules 13d-3 and 13d-5 under the
Exchange Act) other than the Control Group (1) shall have acquired,
directly or indirectly, beneficial ownership of 51% or more on a fully diluted
basis of the voting and/or economic interest in the Capital Stock of Holdings
or (2) shall have obtained the power (whether or not exercised) to elect a
majority of the members of the board of directors (or similar governing body)
of Holdings; (ii) Holdings shall cease to beneficially own and control, on
a fully diluted basis, 100% of the economic and voting interest in the Capital
Stock of the Company; or (iii) the majority of the seats (other than
vacant seats) on the board of directors (or similar governing body) of Holdings
cease to be occupied by Persons who either (1) were members of the board
of directors of Holdings on the Effective Date or (2) were nominated for
election by the board of directors of Holdings, a majority of whom were
directors on the Effective Date or whose election or nomination for election
was previously approved by a majority of such director;

 

 (b) at any time after the Management
Buyout Date and prior to the IPO Date, (i) any Person or “group” (within
the meaning of Rules 13d-3 and 13d-5 under the Exchange Act) other than
the Control Group (1) shall have acquired, directly or indirectly,
beneficial ownership of 51% or more on a fully diluted basis of the voting
and/or economic interest in the Capital Stock of Holdings or (2) shall
have obtained the power (whether or not exercised) to elect a majority of the
members of the board of directors (or similar governing body) of Holdings; (ii) Holdings
shall cease to beneficially own and control, on a fully diluted basis, 100% of
the economic and voting interest in the Capital Stock of the Company; or (iii) the
majority of the seats (other than vacant seats) on the board of directors (or
similar governing body) of Holdings cease to be occupied by Persons who either (1) were
members of the board of directors of Holdings on the Management Buyout Date
after giving effect to the Management Buyout or (2) were nominated for
election by the board of directors of Holdings, a majority of whom were
directors on the Management Buyout Date after giving effect to the Management
Buyout or whose election or nomination for election was previously approved by
a majority of such directors; and

 

(c) at any time after the IPO Date, (i) the acquisition of
ownership, directly or indirectly, beneficially or of record, by any Person or
group (within the meaning of the Securities Exchange Act of 1934 and the rules of
the Securities and Exchange Commission thereunder as in effect on the IPO Date)
other than the Control Group, of Capital Stock representing, on a fully diluted
basis, more than 30% of the aggregate ordinary voting power represented by the
issued and outstanding Capital Stock of the Company (or its parent company or
successor); (ii) the occupation of a majority of the seats (other than
vacant seats) on the board of directors (or similar governing body) of Company
(or its parent company or successor) who were neither (1) nominated by the
board of directors of the Company (or its parent company or successor) nor (2) were
appointed by directors so nominated; or (iii) the acquisition, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of the Company (or its

 

3

 

parent company or successor), whether through the ability to exercise
voting power, by contract or otherwise by any Person or group other than the
Control Group.

 

Control Group means, (a) collectively, at any time prior to the Management
Buyout Date, Cerberus, Miller, and EXCO Investors; provided that (i) EXCO
Investors shall be included in the Control Group only so long as Miller is the
sole manager of EXCO Investors, and (ii) Miller shall be included in the
Control Group only so long as Miller is the Chief Executive Officer of Holdings
and the Company or a member of the board of directors of Holdings, and (b) from
and after the Management Buyout Date, the Miller Group.

 

Holdings means, (a) prior to the Holdings Merger, EXCO Holdings, Inc.
a Delaware corporation, and (b) from and after the Holdings Merger, the
survivor of the Holdings Merger and its successors.

 

1.3          Commitments.  The first sentence of Section 2(a) of
the Credit Agreement shall be and it hereby is amended in its entirety as
follows:

 

On the terms and conditions hereinafter set forth, each Lender agrees
severally to make Advances to the Borrowers from time to time during the period
beginning on the Effective Date and ending on the Revolving Maturity Date in
such amounts as the Borrowers may request up to an amount not to exceed, in the
aggregate principal amount advanced at any time, the aggregate Revolving
Commitment less Total Outstandings; provided that, notwithstanding anything to
the contrary in any Loan Document, during the period from the Fourth Amendment Effective
Date to the IPO Date, the sum of (i) the aggregate principal amount
advanced, plus (ii) the total face amount of all outstanding Letters of
Credit plus (iii) the total amount of all unpaid Reimbursement Obligations
shall not exceed $10,000,000 at any time.

 

1.4          Scheduled
Redeterminations of the Borrowing Base.  The first sentence of Section 7(b) of
the Credit Agreement shall be and it hereby is amended in its entirety as
follows:

 

 Subsequent determinations of the Borrowing
Base shall be made by the Lenders semi-annually on May 1 and November 1
of each year beginning May 1, 2004 or as Unscheduled Redeterminations;
provided that no regularly scheduled semi-annual redeterminations of the
Borrowing Base shall be made during the period from the Fourth Amendment Effective
Date to the IPO Date.

 

1.5          Sales
of Certain Assets/Prepayment of Proceeds.  The first sentence of Section 12(p)
of the Credit Agreement shall be and it hereby is amended in its entirety as
follows:

 

  Each Borrower and each Subsidiary Guarantor
will immediately pay over to the Agent for the ratable benefit of the Lenders
as a prepayment of the outstanding principal balance of the Notes, if any, and
a reduction of the Borrowing Base to the extent such sale results in a
Borrowing Base Deficiency, an amount equal to 100% of the Release Price from
the proceeds of the sale of the Oil and Gas Properties, which sale has been
either (i) made in compliance with the provisions of Section 13(a)(ii) hereof,
or (ii) approved in advance by all of the Lenders.

 

4

 

1.6          Negative
Pledge.  Section 13(a)(ii) of the Credit Agreement shall be and it hereby is amended in its
entirety as follows:

 

 (ii) sell, lease, transfer
or otherwise dispose of, in any fiscal year, any of its assets except for (A) sales,
leases, transfers or other dispositions made in the ordinary course of such
Borrower’s or such Subsidiary Guarantor’s oil and gas business (including sales
of leasehold inventory), (B) the sale, transfer or disposition of any of
the Enron Claims, (C) other sales, leases, transfer or other dispositions
made with the consent of Majority Lenders, except that any sale, lease,
transfer or other disposition of Collateral (other than sales, leases or
transfers permitted under the following clauses (D) and (E)) shall require
the consent of all Lenders, (D) sales of Cash Equivalents in the ordinary
course of business and sales and transfers of Cash Equivalents to the extent
necessary to make the payments permitted pursuant to Section 13(h)(v) and
(E) sales, leases or transfers or other dispositions made by Borrowers and
the Subsidiary Guarantors which do not exceed $25,000,000 in the aggregate
between the dates set for the regularly scheduled semi-annual redeterminations
of the Borrowing Base pursuant to Section 7(b) regardless of whether
any redetermination of the Borrowing Base occurs or is required on such dates and
without giving effect to the proviso in the first sentence of Section 7(b).

 

1.7          Restricted
Payments.  Section 13(h) of the Credit
Agreement shall be and it hereby is amended by deleting “and”
at the end of clause (iii) thereof, deleting the period “.” at the end of clause (iv) thereof and inserting “; and” at the end of such clause and inserting the
following as clause (v) of Section 13(h):

 

 (v) so long as no Default
or Event of Default has occurred and is continuing or would be caused thereby,
the repurchase or redemption of Senior Notes properly tendered to the Company
in response to any offer made by the Company pursuant to (1) Section 4.07(b) of
the Indenture in an amount not to exceed the Net Available Cash (as defined in
the Indenture) from the sale of the Capital Stock of Addison and the Addison
Note (collectively, the “Addison Sale”), including the deposit of an amount
equal to the Net Cash Available from the Addison Sale with the Trustee at the
time such offer is made; provided that such deposit is held by the Trustee
subject to the Liens securing the indebtedness, liabilities and obligations
under the Loan Documents and the aggregate purchase price deposited with the
Trustee and the aggregate amount actually paid to redeem or repurchase the
Senior Notes pursuant to this clause (1) shall not exceed the Net
Available Cash from the Addison Sale, and (2) Section 4.11 of the
Indenture as a result of the Management Buyout.

 

1.8          Loan to
Holdings.  Clauses
(iv) and (v) of Section 13(i) of the Credit
Agreement shall be and they hereby are amended in their entirety as follows:

 

(iv)         loans made by the Company to Holdings in an aggregate principal
amount not to exceed $20,000,000 at any time outstanding; provided,  all such
indebtedness is evidenced by promissory notes and all such notes are subject to
a first priority Lien pursuant to a pledge agreement reasonably satisfactory to
Agent; or

 

(v)           intercompany loans and advances among the Borrowers and the
Subsidiary Guarantors to the extent permitted under clause (v) of Section 13
(g).

 

5

 

1.9          Liquidity
Maintenance.  Section 13 of the Credit Agreement
shall be and it hereby is amended by adding the following as Section 13(s)
at the end of such Section:

 

 (s)          Liquidity
Maintenance. At all times from and after the Fourth
Amendment Effective Date and prior to the IPO Date, the Borrowers will not
permit the aggregate amount of all cash and Cash Equivalents of the Borrowers
and the Subsidiary Guarantors, on a combined basis and without duplication, to
be less than the sum of (i) $210,000,000, minus (ii) the sum
of (x) the aggregate purchase price for all Senior Notes tendered in response
to any offer to repurchase or redeem Senior Notes permitted under Section 13(h)(v) minus
(y) the aggregate purchase price actually paid or deemed paid for such Senior
Notes.  For purposes of determining the
Borrowers’ compliance with this Section 13(s), cash and Cash Equivalents
of any Borrower or any Subsidiary Guarantor deposited with the Trustee pursuant
to any offer to redeem Senior Notes permitted under Section 13(h)(v) shall
constitute Cash and Cash Equivalents of such Borrower or such Subsidiary
Guarantor until the date on which the Trustee is obligated to mail or deliver
to each tendering holder of any Senior Notes the amount of the purchase price
due such holder and any Senior Notes tendered by any such tendering holder
shall be deemed paid on such date to the extent of the amounts deposited with
the Trustee for such payment.

 

1.10        Responsibility
of Agent.  The
last sentence of Section 15(f) of the Credit Agreement shall
be and it hereby is amended in its entirety as follows:

 

Notwithstanding the payment in full of all other indebtedness,
liabilities and obligations of the Borrowers under the Loan Documents nor
anything to the contrary herein or in any other Loan Document, except for
releases of Collateral in connection with sales made in accordance with clauses
(A), (B, (D) and (E)  of Section 13(a)(ii), the Agent shall not
release any of the Collateral without the prior written consent of each Person
that is a North Coast Counterparty on the date of such proposed release.

 

SECTION 2.         Consent
and Waiver.  The
Lenders hereby consent to the acquisition of Holdings
by Holdings II and waive any Event of Default arising under Section 8.1(k)
or Section 8.1(l) as a result of such acquisition; provided that (i) the Company provides a true and
correct copy of the Management Buyout Agreement (as defined below) to Agent
prior to the Closing Date, (ii) such acquisition is consummated on the
terms set forth in the Management Buyout Agreement without waiver or amendment
of any material term or condition thereof (iii) no
Default or Event of Default shall have occurred and be continuing as of the
date of such acquisition and, except for the Events of Default waived pursuant
to this Section 2, no Default or Event of Default would be caused thereby,
(iv) after giving effect to such acquisition, the Miller Group owns not
less than 51% of the issued and outstanding Capital Stock of Holdings II (v) after
giving effect to the merger of Holdings II with and into Holdings (the “Holdings
Merger”), the Miller Group owns not less than 51% of the issue and
outstanding Capital Stock of Holdings, (iv) promptly after the
consummation of such acquisition, the Company (1) delivers to Agent’s
counsel a true and correct copy of all agreements, documents, certificates and
instruments executed and delivered in connection with the Management Buyout and
the Holdings Merger and (2) makes an offer to redeem all of the
outstanding Senior Notes in accordance with Section 4.11 of the Indenture.
The Borrowers hereby acknowledge and agree that the foregoing consent

 

6

 

is limited solely to the matters expressly
set forth in this Section 2. 
Nothing contained in this Section 2 shall obligate any
Lender to grant any additional or future consent or waiver with respect to any
other provision of the Credit Agreement, the Notes, the Security Instruments or
any other Loan Document.

 

SECTION 3.         Reaffirmation of Representations and
Warranties.  Except
to the extent its provisions are specifically amended, modified or superseded
by this Amendment, the representations, warranties and affirmative and negative
covenants of the Company and its Subsidiaries contained in the Credit Agreement
are incorporated herein by reference for all purposes as if copied herein in
full.  The Borrowers hereby restate and
reaffirm each and every term and provision of the Credit Agreement, as amended,
including, without limitation, all representations, warranties and affirmative
and negative covenants.  Except to the
extent its provisions are specifically amended, modified or superseded by this
Amendment, the Credit Agreement, as amended, and all terms and provisions
thereof shall remain in full force and effect, and the same in all respects are
confirmed and approved by the Borrowers, Agent and the Lenders.

 

SECTION 4.         Conditions. 
The amendment to the Credit Agreement
contained in Section 1 of this Amendment shall be effective upon
the satisfaction of each of the conditions set forth in this Section 4.

 

4.1          Execution and Delivery.  The Borrowers shall have
executed and delivered this Amendment, and other required documents, all in
form and substance satisfactory to the Agent.

 

4.2          Representations and Warranties.  The representations and
warranties of the Borrowers under this Amendment are true and correct in all
material respects as of such date, as if then made (except to the extent that
such representations and warranties related solely to an earlier date).

 

4.3          No Event of Default.  No Event of Default shall
have occurred and be continuing nor shall any event have occurred or failed to
occur which, with the passage of time or service of notice, or both, would
constitute an Event of Default.

 

4.4          Management Buyout Documents.  The Agent shall have
received a true and correct copy of that certain Stock Purchase Agreement,
dated on or about September 30, 2005, by and among Holdings and Holdings
II.

 

4.5          Other Documents.  The Agent shall have received such other
instruments and documents incidental and appropriate to the transaction
provided for herein as the Agent or its counsel may reasonably request, and all
such documents shall be in form and substance satisfactory to the Agent.

 

4.6          Legal Matters Satisfactory.  All legal matters incident
to the consummation of the transactions contemplated hereby shall be reasonably
satisfactory to special counsel for the Agent retained at the expense of the
Borrowers.

 

7

 

SECTION 5.         Miscellaneous.

 

5.1          Additional Representations and Warranties.  The Borrowers hereby
represent and warrant that all factual information, if any, heretofore and
contemporaneously furnished by or on behalf of the Borrowers to Agent for
purposes of or in connection with this Amendment does not contain any untrue
statement of a material fact or omit to state any material fact necessary to
keep the statements contained herein or therein from being misleading.  Each of the foregoing representations and
warranties shall constitute a representation and warranty of the Borrowers made
under the Credit Agreement, and it shall be an Event of Default if any such
representation and warranty shall prove to have been incorrect or false in any
material respect at the time given.  Each
of the representations and warranties made under the Credit Agreement (including
those made herein) shall survive and not be waived by the execution and
delivery of this Amendment or any investigation by Agent or the Lenders.

 

5.2          Indemnification.  The Borrowers agree to indemnify and hold
harmless Agent and the Lenders and their respective officers, employees,
agents, attorneys and representatives (singularly, an “Indemnified Party”,
and collectively, the “Indemnified Parties”) from and against any loss,
cost, liability, damage or expense (including the reasonable fees and out-of-pocket
expenses of counsel to Agent or the Lenders, including all local counsel hired
by such counsel) (“Claim”) incurred by Agent or the Lenders in
investigating or preparing for, defending against, or providing evidence,
producing documents or taking any other action in respect of any commenced or
threatened litigation, administrative proceeding or investigation under any
federal securities law, federal or state environmental law, or any other
statute of any jurisdiction, or any regulation, or at common law or otherwise,
which is alleged to arise out of or is based upon any acts, practices or
omissions or alleged acts, practices or omissions of the Borrowers or their
agents or arises in connection with the duties, obligations or performance of
the Indemnified Parties in negotiating, preparing, executing, accepting,
keeping, completing, countersigning, issuing, selling, delivering, releasing,
assigning, handling, certifying, processing or receiving or taking any other
action with respect to the Loan Documents and all documents, items and
materials contemplated thereby even if any of the foregoing arises out of an
Indemnified Party’s ordinary negligence. 
The indemnity set forth herein shall be in addition to any other
obligations or liabilities of the Borrowers to the Lenders hereunder or at
common law or otherwise, and shall survive any termination of this Amendment,
the expiration of the Loan and the payment of all indebtedness of the Borrowers
to the Lenders hereunder and under the Notes, provided that the Borrowers shall
not have any obligation under this section to the Lenders with respect to
any of the foregoing arising out of the gross negligence or willful misconduct
of the Lenders.  If any Claim is asserted
against any Indemnified Party, the Indemnified Party shall endeavor to notify
the Borrowers of such Claim (but failure to do so shall not affect the
indemnification herein made except to the extent of the actual harm caused by
such failure).  The Indemnified Party
shall have the right to employ, at the Borrowers’ expense, counsel of the
Indemnified Parties’ choosing and to control the defense of the Claim.  The Borrowers may at their own expense also
participate in the defense of any Claim. 
Each Indemnified Party may employ separate counsel in connection with
any Claim to the extent such Indemnified Party believes it reasonably prudent
to protect such Indemnified Party.  The parties intend for the provisions of this Section to
apply to and protect each Indemnified Party from the consequences of strict
liability imposed or threatened to be imposed on any Indemnified Party as well
as from the consequences of its

 

8

 

own negligence, whether or not
that negligence is the sole, contributing, or concurring cause of any Claim,
but not from any portion of such Claim arising from the gross negligence or
willful misconduct of any Indemnified Party.

 

5.3          Counterparts. 
This Amendment may be executed in one or
more counterparts and by different parties hereto in separate counterparts each
of which when so executed and delivered shall be deemed an original, but all
such counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and
attached to a single counterpart so that all signature pages are
physically attached to the same document. 
However, this Amendment shall bind no party until the Borrowers, Agent
and Lenders have executed a counterpart. 
Facsimiles shall be effective as originals.

 

5.4          WRITTEN CREDIT AGREEMENT.  THE CREDIT AGREEMENT, AS
AMENDED, REPRESENTS THE FINAL AGREEMENT BETWEEN AND AMONG THE PARTIES AND MAY NOT
BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.  THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN AND AMONG THE PARTIES.

 

5.5          No Impairment.  The Borrowers acknowledge and agree that the
renewal, extension and amendment of the Credit Agreement shall not be
considered a novation of account or new contract but that all existing rights,
titles, powers, and estates in favor of the Agent and the Lenders constitute
valid and existing obligations in favor of Agent and the Lenders.  The Borrowers confirm and agree that (a) neither
the execution of this Amendment nor any other Loan Document nor the
consummation of the transactions described herein and therein shall in any way
effect, impair or limit the covenants, liabilities, obligations and duties of
the Borrowers under the Loan Documents and (b) the obligations evidenced
and secured by the Loan Documents continue in full force and effect.

 

 

[Signature Pages Follow]

 

9

 

IN WITNESS WHEREOF, the parties have caused this Fourth Amendment to Third Amended and
Restated Credit Agreement to be duly executed as of the date first above
written.

 

	
   

  	
  BORROWERS:

  
	
   

  	
   

  
	
   

  	
  EXCO RESOURCES, INC.
a Texas corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/
  J. Douglas Ramsey

  	
   

  
	
   

  	
  Name: J.
  Douglas Ramsey

  
	
   

  	
  Title:   Vice
  President and Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXCO
  OPERATING, LP
a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  EXCO
  Investment II, LLC,

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  EXCO
  Resources, Inc.,

  its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /S/
  J. Douglas Ramsey

  	
   

  
	
   

  	
   

  	
  Name: J.
  Douglas Ramsey

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President and

  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NORTH
  COAST ENERGY, INC.
a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/
  J. Douglas Ramsey

  	
   

  
	
   

  	
  Name: J.
  Douglas Ramsey

  
	
   

  	
  Title:   Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NORTH
  COAST ENERGY EASTERN, INC.
a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/
  J. Douglas Ramsey

  	
   

  
	
   

  	
  Name: J.
  Douglas Ramsey

  
	
   

  	
  Title:   Vice
  President

  
							

 

 

	
   

  	
  LENDERS:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A.
(successor by merger to Bank One, N.A. (Illinois))
a national banking association

  as a Lender and as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/
  Wm. Mark Cranmer

  	
   

  
	
   

  	
  Name: Wm.
  Mark Cranmer

  
	
   

  	
  Title:   Vice
  President

  

 

 

	
   

  	
  BNP PARIBAS
as a Lender and as Syndication
  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /S/  David Dodd

  	
   

  
	
   

  	
  Name:  David
  Dodd

  
	
   

  	
  Title:    Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /S/  Polly Schott

  	
   

  
	
   

  	
  Name:  Polly
  Schott

  
	
   

  	
  Title:    Vice
  President

  

 

 

	
   

  	
  THE BANK OF NOVA SCOTIA
as a Lender and as a
  Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/  M.D. Smith

  	
   

  
	
   

  	
  Name: M.D.
  Smith

  
	
   

  	
  Title:   Agent

  

 

 

	
   

  	
  COMERICA BANK

  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /S/
  Peter L. Sefzik

  	
   

  
	
   

  	
  Name: Peter
  L. Sefzik

  
	
   

  	
  Title:   Vice
  President

  

 

 

	
   

  	
  TORONTO DOMINION (TEXAS) LLC
as a Lender and as a
  Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/  Masood Fikree

  	
   

  
	
   

  	
  Name: 
  Masood Fikree

  
	
   

  	
  Title:    Authorized
  Agent

  

 

 

	
   

  	
  UNION BANK OF CALIFORNIA, N.A.
as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/  Kimberly Coil

  	
   

  
	
   

  	
  Name: Kimberly
  Coil

  
	
   

  	
  Title:   Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /S/  Ali Ahmed

  	
   

  
	
   

  	
  Name:  Ali
  Ahmed

  
	
   

  	
  Title:    Vice
  President

  

 

 

	
   

  	
  CREDIT
  SUISSE FIRST BOSTON
acting
  through its Cayman Island branch

  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/  Vanessa Gomez

  	
   

  
	
   

  	
  Name: Vanessa
  Gomez

  
	
   

  	
  Title:   Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/  Karim Blasetti

  	
   

  
	
   

  	
  Name: Karim
  Blasetti

  
	
   

  	
  Title:   Associate

  

 

 

	
   

  	
  BANK
  OF AMERICA N.A.
as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/  Jeffrey H. Rathkamp

  	
   

  
	
   

  	
  Name:  Jeffrey
  H. Rathkamp

  
	
   

  	
  Title:    Director

  

 

 

	
   

  	
  KEY
  BANK,
as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/  Thomas Rajan

  	
   

  
	
   

  	
  Name:  Thomas
  Rajan

  
	
   

  	
  Title:    Vice
  President

  

 

 

	
   

  	
  FORTIS
  CAPITAL CORP.,
as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/  Michele Jones

  	
   

  
	
   

  	
  Name: Michele
  Jones

  
	
   

  	
  Title:   Senior
  Vice President

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/  Darrell Holley

  	
   

  
	
   

  	
  Name: Darrell
  Holley

  
	
   

  	
  Title:   Managing
  Director

  

 

 

	
   

  	
  WELLS
  FARGO BANK, NA
as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /S/  David C. Brooks

  	
   

  
	
   

  	
  Name: David
  C. Brooks

  
	
   

  	
  Title:   Vice
  President

  

 

 

	
   

  	
  CITIBANK
  TEXAS, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/  Angela McCracken

  	
   

  
	
   

  	
  Name:  Angela
  McCracken

  
	
   

  	
  Title:    Vice
  President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]