Document:

Loan Agreement - PPRA Mezz

 EXHIBIT 10.60 

  
 LOAN AGREEMENT (MEZZANINE LOAN) 
  
 Dated as of October 28, 2003 
  
 Between 
  
 PPRA MEZZ BORROWER, INC. 
 as Borrower 
  
 and 
  
 LEHMAN BROTHERS HOLDINGS INC., 
 as Lender 
  

  

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page

	I.	  	DEFINITIONS; PRINCIPLES OF CONSTRUCTION	  	1
	 	  	Section 1.1	  	 Definitions
	  	1
	 	  	Section 1.2	  	 Principles of Construction
	  	23
			
	II.	  	GENERAL TERMS	  	24
	 	  	Section 2.1	  	 Loan Commitment; Disbursement to Borrower
	  	24
	 	  	2.1.1	  	 Agreement to Lend and Borrow
	  	24
	 	  	2.1.2	  	 Single Disbursement to Borrower
	  	24
	 	  	2.1.3	  	 The Note, Security Instruments and Loan Documents
	  	24
	 	  	2.1.4	  	 Use of Proceeds
	  	24
	 	  	2.1.5	  	 Intentionally Omitted
	  	23
	 	  	Section 2.2	  	 Interest; Amortization; Loan Payments; Late Payment Charge; Extension
	  	24
	 	  	2.2.1	  	 Interest and Principal Amortization Generally
	  	24
	 	  	2.2.2	  	 Interest Calculation
	  	25
	 	  	2.2.3	  	 Eurodollar Rate Unascertainable; Illegality; Increased Costs
	  	25
	 	  	2.2.4	  	 Payment on Maturity Date
	  	27
	 	  	2.2.5	  	 Payments after Default
	  	27
	 	  	2.2.6	  	 Late Payment Charge
	  	27
	 	  	2.2.7	  	 Usury Savings
	  	27
	 	  	2.2.8	  	 Taxes
	  	28
	 	  	Section 2.3	  	 Prepayments
	  	29
	 	  	2.3.1	  	 Voluntary Prepayments
	  	29
	 	  	2.3.2	  	 Mandatory Prepayments
	  	30
	 	  	2.3.3	  	 Prepayments After Default
	  	31
	 	  	2.3.4	  	 Making of Payments
	  	31
	 	  	Section 2.4	  	 Interest Rate Cap Agreement
	  	31
	 	  	Section 2.5	  	 	  	 
	 	  	2.5.2	  	 Release on Payment in Full
	  	 
			
	III.	  	CASH MANAGEMENT	  	33
	 	  	Section 3.1	  	 Establishment of Accounts
	  	33
	 	  	Section 3.2	  	 Deposits into Property Account
	  	34
	 	  	Section 3.3	  	 Distributions
	  	35
	 	  	Section 3.4	  	 Eligible Accounts
	  	36
	 	  	Section 3.5	  	 Permitted Investments
	  	36
	 	  	Section 3.6	  	 Triggering Event
	  	36
	 	  	Section 3.7	  	 Transfer To and Disbursements from the Lockbox Account
	  	37
	 	  	Section 3.8	  	 Borrower’s Obligation Not Affected
	  	38
	 	  	Section 3.9	  	 INTENTIONALLY OMITTED
	  	38
	 	  	Section 3.10	  	 Lender Reliance
	  	38
	 	  	Section 3.11	  	 Application of Funds in the Excess Cash Flow Account
	  	38
			
	IV.	  	REPRESENTATIONS AND WARRANTIES	  	39
	 	  	Section 4.1	  	 Borrower Representations
	  	39
	 	  	4.1.1	  	 Organization
	  	39

  

 -i- 

							
	 	  	4.1.2	  	 Proceedings
	  	39
	 	  	4.1.3	  	 No Conflicts
	  	39
	 	  	4.1.4	  	 Litigation
	  	40
	 	  	4.1.5	  	 Agreements
	  	40
	 	  	4.1.6	  	 Solvency
	  	40
	 	  	4.1.7	  	 Full and Accurate Disclosure
	  	42
	 	  	4.1.8	  	 No Plan Assets; No Employees
	  	42
	 	  	4.1.9	  	 Compliance
	  	42
	 	  	4.1.10	  	 Financial Information
	  	42
	 	  	4.1.11	  	 Federal Reserve Regulations
	  	43
	 	  	4.1.12	  	 Not a Foreign Person
	  	43
	 	  	4.1.13	  	 No Prior Assignment
	  	43
	 	  	4.1.14	  	 Enforceability
	  	43
	 	  	4.1.15	  	 Perfection
	  	43
	 	  	4.1.16	  	 Property
	  	43
	 	  	4.1.17	  	 Insolvency Opinion
	  	46
	 	  	4.1.18	  	 Illegal Activity
	  	46
	 	  	4.1.19	  	 No Change in Facts or Circumstances; Disclosure
	  	46
	 	  	4.1.20	  	 Investment Company Act
	  	47
	 	  	4.1.21	  	 Principal Place of Business
	  	47
	 	  	4.1.22	  	 Single Purpose Entity
	  	47
	 	  	4.1.23	  	 Business Purposes
	  	51
	 	  	4.1.24	  	 Taxes
	  	51
	 	  	4.1.25	  	 Forfeiture
	  	51
	 	  	4.1.26	  	 Environmental Representations and Warranties
	  	51
	 	  	4.1.27	  	 Loan to Value.
	  	52
	 	  	4.1.28	  	 Taxpayer Identification Number
	  	52
	 	  	4.1.29	  	 Warranty of Title
	  	52
	 	  	4.1.30	  	 Franchise Agreement
	  	52
	 	  	4.1.31	  	 Ground Lease Representations
	  	53
	 	  	4.1.32	  	 Representations in the Mortgage Loan Documents
	  	53
	 	  	4.1.33	  	 Control
	  	54
	 	  	4.1.34	  	 Personal Holding Company
	  	54
	 	  	4.1.35	  	 Intentionally Omitted.
	  	54
	 	  	4.1.36	  	 OFAC
	  	54
	 	  	Section 4.2	  	 Survival of Representations
	  	54
			
	V.	  	BORROWER COVENANTS	  	55
	 	  	Section 5.1	  	 Affirmative Covenants
	  	55
	 	  	5.1.1	  	 Existence; Compliance with Legal Requirements
	  	55
	 	  	5.1.2	  	 Taxes and Other Charges
	  	55
	 	  	5.1.3	  	 Litigation
	  	56
	 	  	5.1.4	  	 Access to Property; Books and Records
	  	56
	 	  	5.1.5	  	 Notice of Default
	  	57
	 	  	5.1.6	  	 Cooperate in Legal Proceedings
	  	57
	 	  	5.1.7	  	 Award and Insurance Benefits
	  	57
	 	  	5.1.8	  	 Further Assurances
	  	57

  

 -ii- 

							
	 	  	5.1.9	  	 Mortgage and Intangible Taxes
	  	58
	 	  	5.1.10	  	 Financial Reporting
	  	58
	 	  	5.1.11	  	 Business and Operations
	  	62
	 	  	5.1.12	  	 Costs of Enforcement
	  	63
	 	  	5.1.13	  	 Estoppel Statement; Franchisor Estoppel
	  	63
	 	  	5.1.14	  	 Loan Proceeds
	  	63
	 	  	5.1.15	  	 Performance by Borrower
	  	63
	 	  	5.1.16	  	 Confirmation of Representations
	  	63
	 	  	5.1.17	  	 Leasing Matters
	  	64
	 	  	5.1.18	  	 Management Agreement
	  	66
	 	  	5.1.19	  	 Environmental Covenants
	  	67
	 	  	5.1.20	  	 Alterations
	  	68
	 	  	5.1.21	  	 Performance of Other Agreements
	  	68
	 	  	5.1.22	  	 Franchise Agreement
	  	70
	 	  	5.1.23	  	 The Ground Lease
	  	70
	 	  	5.1.24	  	 Covenants under the Mortgage Loan
	  	71
	 	  	5.1.25	  	 O&M Program
	  	71
	 	  	5.1.26	  	 Bankruptcy
	  	71
	 	  	5.1.27	  	 Intentionally Omitted
	  	71
	 	  	Section 5.2	  	 Negative Covenants
	  	72
	 	  	5.2.1	  	 Liens
	  	72
	 	  	5.2.2	  	 Dissolution
	  	72
	 	  	5.2.3	  	 Change in Business
	  	72
	 	  	5.2.4	  	 Debt Cancellation
	  	72
	 	  	5.2.5	  	 Zoning
	  	72
	 	  	5.2.6	  	 No Joint Assessment
	  	73
	 	  	5.2.7	  	 Principal Place of Business
	  	73
	 	  	5.2.8	  	 ERISA
	  	73
	 	  	5.2.9	  	 Affiliate Transactions
	  	74
	 	  	5.2.10	  	 Assets
	  	74
	 	  	5.2.11	  	 Debt
	  	74
	 	  	5.2.12	  	 Transfers
	  	74
	 	  	5.2.13	  	 INTENTIONALLY OMITTED
	  	77
	 	  	5.2.14	  	 INTENTIONALLY OMITTED
	  	77
	 	  	5.2.15	  	 Misapplication of Funds
	  	77
			
	VI.	  	INSURANCE; CASUALTY; CONDEMNATION; REQUIRED REPAIRS	  	77
	 	  	Section 6.1	  	 Insurance
	  	77
	 	  	Section 6.2	  	 Casualty
	  	81
	 	  	Section 6.3	  	 Condemnation
	  	81
	 	  	Section 6.4	  	 Restoration
	  	82
			
	VII.	  	RESERVE FUNDS	  	83
	 	  	Section 7.1	  	 Required Repair Funds
	  	83
	 	  	7.1.1	  	 Deposits
	  	83
	 	  	7.1.2	  	 Release of Required Repair Funds
	  	83
	 	  	Section 7.2	  	 Tax and Insurance Escrow Fund
	  	84

  

 -iii- 

							
	 	  	7.2.1	  	 Deposits to the Tax and Insurance Escrow Fund
	  	84
	 	  	7.2.2	  	 Withdrawals From the Tax Account and the Insurance Premium Account
	  	85
	 	  	Section 7.3	  	 Replacements and Replacement Reserve
	  	85
	 	  	7.3.1	  	 Replacement Reserve Fund
	  	85
	 	  	7.3.2	  	 Disbursements from Replacement Reserve Account
	  	86
	 	  	7.3.3	  	 Performance of Replacements
	  	88
	 	  	7.3.4	  	 Failure to Make Replacements
	  	90
	 	  	7.3.5	  	 Balance in the Replacement Reserve Account
	  	90
	 	  	Section 7.4	  	 Ground Lease Escrow Fund
	  	90
	 	  	Section 7.5	  	 INTENTIONALLY OMITTED
	  	91
	 	  	Section 7.6	  	 Debt Service Reserve
	  	91
	 	  	7.6.1	  	 Debt Service Reserve Deposit
	  	91
	 	  	7.6.2	  	 Release of Debt Service Reserve
	  	91
	 	  	Section 7.7	  	 Intentionally Omitted
	  	91
			
	VIII.	  	DEFAULTS	  	91
	 	  	Section 8.1	  	 Event of Default
	  	91
	 	  	Section 8.2	  	 Remedies
	  	96
	 	  	Section 8.3	  	 Remedies Cumulative; Waivers
	  	96
			
	IX.	  	SPECIAL PROVISIONS	  	97
	 	  	Section 9.1	  	 Sale of Notes and Securitization
	  	97
	 	  	Section 9.2	  	 Securitization Indemnification
	  	99
	 	  	Section 9.3	  	 Servicer
	  	102
	 	  	Section 9.4	  	 Exculpation
	  	102
	 	  	Section 9.5	  	 Contributions and Waivers
	  	104
	 	  	Section 9.6	  	 Reallocation of Loan Amounts
	  	104
			
	X.	  	MISCELLANEOUS	  	105
	 	  	Section 10.1	  	 Survival
	  	105
	 	  	Section 10.2	  	 Lender’s Discretion
	  	105
	 	  	Section 10.3	  	 Governing Law
	  	105
	 	  	Section 10.4	  	 Modification, Waiver in Writing
	  	106
	 	  	Section 10.5	  	 Delay Not a Waiver
	  	106
	 	  	Section 10.6	  	 Notices
	  	106
	 	  	Section 10.7	  	 Trial by Jury
	  	107
	 	  	Section 10.8	  	 Headings
	  	107
	 	  	Section 10.9	  	 Severability
	  	108
	 	  	Section 10.10	  	 Preferences
	  	108
	 	  	Section 10.11	  	 Waiver of Notice
	  	108
	 	  	Section 10.12	  	 Remedies of Borrower
	  	108
	 	  	Section 10.13	  	 Expenses; Indemnity
	  	108
	 	  	Section 10.14	  	 Schedules and Exhibits Incorporated
	  	110
	 	  	Section 10.15	  	 Offsets, Counterclaims and Defenses
	  	110
	 	  	Section 10.16	  	 No Joint Venture or Partnership; No Third Party Beneficiaries
	  	110
	 	  	Section 10.17	  	 Publicity
	  	110
	 	  	Section 10.18	  	 Cross-Default; Cross-Collateralization; Waiver of Marshalling of Assets
	  	110
	 	  	Section 10.19	  	 Waiver of Counterclaim
	  	111
	 	  	Section 10.20	  	 Conflict; Construction of Documents; Reliance
	  	111

  

 -iv- 

							
	 	 	Section 10.21	  	 Brokers and Financial Advice
	  	111
	 	 	Section 10.22	  	 Prior Agreements
	  	111
	 	 	Section 10.23	  	 Compliance With Mortgage Loan Documents
	  	112
	 	 	Section 10.24	  	 Mortgage Loan Defaults
	  	112
	 	 	Section 10.25	  	 Mortgage Loan Estoppels
	  	114
	 	 	Section 10.26	  	 No Amendments to Mortgage Loan Documents
	  	114
	 	 	Section 10.27	  	 Acquisition of the Mortgage Loan
	  	115
	 	 	Section 10.28	  	 Deed In Lieu of Foreclosure; Borrower not to Acquire Mortgage Loan
	  	115
	 	 	Section 10.29	  	 Refinancing or Prepayment of the Mortgage Loan
	  	115
	 	 	Section 10.30	  	 Independent Approval Rights
	  	116
	 	 	Section 10.31	  	 Intercreditor Agreement
	  	116
	 	 	Section 10.32	  	 Subordination; Relationship to Mortgage Loan
	  	116
	 	 	Section 10.33	  	 Joint and Several Liability
	  	117
	 	 	Section 10.34	  	 Rescission of Payments
	  	117
	 	 	Section 10.35	  	 Attorney-In-Fact
	  	117
	 	 	Section 10.36	  	 Counterparts
	  	117
	 	 	Section 10.37	  	 Time
	  	117
	 	 	Section 10.38	  	 Amendments Included
	  	118
	 	 	Section 10.39	  	 INTENTIONALLY OMITTED
	  	118
	 	 	Section 10.40	  	 Maintenance of the Registry
	  	118

  
 Schedules and Exhibits 
  

			
	SCHEDULE I	  	 The Pledged Interests

	SCHEDULE II	  	 Rent Roll/Leases

	SCHEDULE III	  	 Intentionally Omitted.

	SCHEDULE IV	  	 Organizational Chart of Borrower

	SCHEDULE V	  	 Monthly Scheduled Amortization Payments

	SCHEDULE VI	  	 Intentionally Omitted.

	SCHEDULE VII	  	 Permitted FF&E Financing

	SCHEDULE VIII	  	 Intentionally Omitted

	SCHEDULE IX	  	 Intentionally Omitted

	SCHEDULE X	  	 Intentionally Omitted

	SCHEDULE XI	  	 Special Assessments

	SCHEDULE XII	  	 Litigation Schedule

	SCHEDULE XIII	  	 Borrower Defaults

	SCHEDULE XIV	  	 Lease Assignments

	SCHEDULE XV	  	 Condemnation

	SCHEDULE XVI	  	 Casualty

	SCHEDULE XVII	  	 Public Access

	SCHEDULE XVIII	  	 Insurance Claims

	SCHEDULE XIX	  	 Lease Defaults

	SCHEDULE XX	  	 Addresses

	SCHEDULE XXI	  	 Taxes

		
	EXHIBIT A	  	 Property Account Agreement

	EXHIBIT B	  	 Perfection Requirements

  

 -v- 

			
	EXHIBIT C	  	 Assignment of Interest Rate Cap Agreement

	EXHIBIT D	  	 Intentionally Omitted

	EXHIBIT E	  	 Excluded Group — Series B Convertible Preferred Stock Holders

	EXHIBIT F	  	 Property

	EXHIBIT G	  	 Intentionally Omitted

	EXHIBIT H	  	 Employee Parking Lot Parcel

	EXHIBIT I	  	 Miramar Parcel

	EXHIBIT J	  	 El San Juan Property

	EXHIBIT K	  	 Concession Agreements

	EXHIBIT L	  	 Non Disturbance and Recognition Agreement

  

 -vi- 

 LOAN AGREEMENT (MEZZANINE LOAN) 
  
 THIS LOAN AGREEMENT (MEZZANINE LOAN), dated as of October 28, 2003 (as
amended, restated, replaced, supplemented or otherwise modified from time to time, this “Agreement”), between LEHMAN BROTHERS HOLDINGS INC., a Delaware corporation having an address at 399 Park Avenue, New York, New York
10022 (“Lender”) and PPRA MEZZ BORROWER, INC., a Delaware corporation,, having an address at c/o Wyndham International, Inc., 1950 Stemmons Freeway, Suite 6001, Dallas, Texas 75207 (“Borrower”). 

 
 W  I  T  N  E  S  S  E  T  H: 
  
 WHEREAS, Borrower desires to obtain the Loan (as hereinafter defined)
from Lender; and 
  
 WHEREAS, the Loan is secured by, among
other things, a lien on and security interest in Borrower’s 100% shareholder interest in Posadas De Puerto Rico Associates, Incorporated (“Mortgage Borrower”), a Delaware corporation and PPRA Mezz Owner, Inc.’s
(“Pledgor”) 100% shareholder interest in Borrower (all such interests pledged by Borrower or Pledgor, the “Pledged Interests” and as further described on Schedule I hereto; the Pledged Interests together with any
other collateral for the Loan now or hereafter pledged by Borrower, Pledgor or Guarantor to Lender to secure all or a portion of the Loan, collectively, the “Collateral”); 
  
 WHEREAS, Lender is willing to make the Loan to Borrower, subject to
and in accordance with the terms of this Agreement and the other Loan Documents (as hereinafter defined). 
  
 NOW THEREFORE, in consideration of the making of the Loan by Lender and the covenants, agreements, representations and warranties set forth in this
Agreement, the parties hereto hereby covenant, agree, represent and warrant as follows: 
  

	 	I.	DEFINITIONS; PRINCIPLES OF CONSTRUCTION 

  
 Section 1.1 Definitions 
  
 For all purposes of this Agreement, except as otherwise expressly required or unless the context clearly indicates a contrary intent: 
  
 “Acceptable Counterparty” means any Counterparty to the
Interest Rate Cap Agreement that has and shall maintain, until the expiration of the applicable Interest Rate Cap Agreement, a long-term unsecured debt rating of not less than “AA-” by S&P and “Aa3” by Moodys. 
  
 “Accounts” shall mean, collectively, the Property Account,
the Tax Account, the Insurance Premium Account, the Required Repair Account, the Replacement Reserve Account, the Ground Rent Account, the Mortgage Loan Debt Service Account, the Borrower Expense Account, the Extraordinary Expense Account, the
Mezzanine Loan Account, the Excess Cash Flow Account and the Lockbox Account. 
  
 “Accounts Receivable” shall have the meaning set forth in Article I of each of the Mortgage Security Agreement. 
  

 “Actual Amount” shall have the meaning set forth in the definition of “Replacement
Reserve Deposit”. 
  
 “Acquired Property”
shall have the meaning set forth in Section 5.1.10(i)(i). 
  
 “Acquired Property Statements” shall have the meaning set forth in Section 5.1.10(i)(i). 
  
 “Additional Insolvency Opinion” shall have the meaning set forth in Section 4.1.17. 
  
 “Additional Interest” shall mean an aggregate amount equal
to 3.20339% of the original principal amount of the Loan (with no adjustment for monthly amortization payments) less any portion of the Additional Interest previously paid by Borrower in accordance with Section 2.3.1, Section 2.3.2 and Section 3.11.

  
 “Adjusted Prime Rate” shall mean an interest
rate per annum equal to the Prime Rate in effect from time to time, but never less than 2.0%, plus 8.105932% per annum. 
  
 “Affiliate” shall mean, as to any Person, any other Person that, directly or indirectly, is in control of, is controlled by or is under
common control with such Person or is a director or executive officer of such Person or of an Affiliate of such Person. 
  
 “Affiliated Loans” shall mean a loan made by Lender or Mortgage Lender to an Affiliate of Borrower or any Guarantor. 
  
 “Affiliated Manager” shall mean any managing agent which is
an Affiliate of, or in which Borrower, Principal, or any Guarantor (or its successor) or any transferee permitted pursuant to the terms of Section 5.2.12 hereof has, directly or indirectly, any legal, beneficial or economic interest. 
  
 “Agreement” shall have the meaning set forth in the
introductory paragraph hereto. 
  
 “ALTA” shall
mean American Land Title Association or any successor thereto. 
  
 “Annual Budget” shall mean the operating budget, including all planned Capital Expenditures (which shall include a reasonable allowance for any customary market-rate supervisory fee or charges, including “reimbursable
costs” for travel and lodging, and any other fee commonly referred to as “purchasing fees”, charged by Mortgage Borrower, Manager or any Affiliated Person for services rendered in connection therewith), for the Property prepared by
Borrower or Mortgage Borrower for the applicable Fiscal Year or other period that may be specified herein. 
  
 “Applicable Contribution” shall have the meaning set forth in Section 9.5(f) hereof. 
  
 “Applicable Interest Rate” shall mean (A) from and including
the Closing Date through the last day of the Initial Interest Period, an interest rate per annum equal to the greater of (X) (a) the Eurodollar Rate; or (b) the Adjusted Prime Rate, if the Loan begins bearing interest at the Adjusted Prime Rate in
accordance with the provisions of Section 2.2.3 hereof and (Y) 10.105932% per annum; and (B) from and including the first day of the Interest Period following the Initial Interest Period and for each successive Interest Period through and including
the date on which the Debt is paid in full, an interest rate per annum equal to the greater of (i) (I) the Eurodollar Rate or (II) the Adjusted Prime Rate, if the Loan begins bearing interest at the Adjusted Prime Rate in accordance with the
provisions of Section 2.2.3 hereof and (ii) 10.105932% per annum. 
  

 2 

 “Applicable Laws” shall mean all existing and future federal, State, Commonwealth of
Puerto Rico and local laws, orders, ordinances, governmental rules and regulations and court orders. 
  
 “Appraisal” shall mean an appraisal prepared in accordance with the requirements of FIRREA, prepared by an independent third party
appraiser holding an MAI designation, who is State licensed or State certified if required under the laws of the State where the Property is located, who meets the requirements of FIRREA and who is otherwise satisfactory to Lender. 
  
 “Approved Annual Budget” shall have the meaning set forth in
Section 5.1.10(d) hereof. 
  
 “Approved Expenses”
shall have the meaning set forth in Section 3.7(b) hereof. 
  
 “Assignment of Interest Rate Cap” shall mean that certain Collateral Assignment of Interest Rate Cap Agreement made by Borrower in favor of Lender as security for the Loan, consented to by the Counterparty, as the same may
be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Assignment of Management Agreement” shall mean that certain Conditional Assignment of Management Agreement dated the date hereof among Lender, Borrower and Manager, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Award” shall mean any compensation paid by any Governmental Authority to (or on behalf of) Borrower in connection with a Condemnation in respect of all or any part of the Property. 
  
 “Bankruptcy Code” shall mean 11 U.S.C. § 101 et seq.,
and the rules and regulations adopted and promulgated pursuant thereto, as the same may be amended from time to time. 
  
 “Basic Carrying Costs” shall mean, with respect to the Property, the sum of the following costs associated with the Property for the
relevant Fiscal Year or payment period: (i) Taxes, (ii) Insurance Premiums and (iii) Ground Rent. 
  
 “Benefit Amount” shall have the meaning set forth in Section 9.5(d) hereof. 
  
 “Borrower” shall have the meaning set forth in the introductory paragraph hereto, together with its
successors and assigns. 
  
 “Borrower Expense
Account” shall have the meaning set forth in Section 3.1(b)(viii) hereof. 
  
 “Breakage Costs” shall have the meaning given to it in Section 2.2.3(d) hereof; 
  
 “Business Day” shall mean any day other than a Saturday, Sunday or any other day on which national banks in New York, New York are not
open for business. 
  
 “Business Party” shall
have the meaning set forth in Section 4.1.22(aa). 
  
 “Capital Expenditures” shall mean, with respect to the Property, for any period, the amount expended for items capitalized under GAAP and the Uniform System of Accounts (including expenditures for building improvements or
major repairs, leasing commissions and tenant improvements and the acquisition of furniture, fixtures and equipment). 
  

 3 

 “Casino Budget” shall mean a Capital Expenditure budget prepared by Mortgage Borrower
and reasonably acceptable to Lender with respect to the casino operations only and any updates to same prepared by Mortgage Borrower and reasonably acceptable to Lender. 
  
 “Casualty” shall have the meaning specified in Section 6.2 hereof. 
  
 “Change of Control” shall mean (A) the acquisition,
including through mergers, consolidation or otherwise, by any Person or Group (excluding the Excluded Group) of direct or indirect beneficial ownership as defined in Rule 13 d-3 under the Exchange Act of more than 50% of (i) the outstanding shares
of common stock of Wyndham or (ii) the total voting power of all classes of capital stock of Wyndham entitled to vote generally in the election of directors, unless such Person or Group owned at least 50% of the interests described in clause (i) or
(ii) above in Wyndham prior to such merger or consolidation; or (B) the election by any Person or Group (other than the Excluded Group) of a sufficient number of its or their nominees to the Board of Directors of Wyndham such that such nominees,
when added to any existing directors remaining on such Board of Directors after such election who are affiliates or associates of such Person or Group, shall constitute a majority of such Board of Directors. 
  
 “Closing Date” shall mean the date of funding of the Loan.

  
 “Code” shall mean the Internal Revenue Code
of 1986, as amended, as it may be further amended from time to time, and any successor statutes thereto, and all applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form. 
  
 “Collateral” shall have the meaning set forth in the
recitals of this Agreement. 
  
 “Condemnation”
shall mean a temporary or permanent taking by any Governmental Authority as the result or in lieu or in anticipation of the exercise of the right of condemnation or eminent domain, of all or any part of the Property, or any interest therein or right
accruing thereto, including any right of access thereto or any change of grade affecting the Property or any part thereof. 
  
 “Contract Rate” shall mean, at the time of any calculation, an interest rate constant per annum equal to ten and one-quarter percent
(10.25%). 
  
 “Contribution” shall have the
meaning set forth in Section 9.5(a) hereof. 
  
 “Counterparty” shall mean the Person that is the issuer of the Interest Rate Cap Agreement. 
  
 “Cure Contract Rate” shall mean, at the time of any calculation, an interest rate constant per annum equal to ten and one-half percent
(10.50%). 
  
 “Debt” shall mean the outstanding
principal amount set forth in and evidenced by, this Agreement and the Note together with unpaid, accrued interest thereon and all other sums due to Lender in respect of the Loan under this Agreement, the Note, the Security Instruments or any other
Loan Document. 
  
 “Debt Service” shall mean,
with respect to any particular period of time, interest payments and all Monthly Scheduled Amortization Payments due under the Note for such period. 
  

 4 

 “Debt Service Coverage Ratio” shall mean a ratio in which: 
  
 (a) the numerator is the Net Operating Income (excluding any interest income)
for the 12 full calendar month period preceding the date of calculation as set forth in the statements required hereunder, without deduction for (i) the actual management fee (excluding the national sales office fee, the central marketing fee and
the reservation fee as provided in the Management Agreement) incurred in connection with the operation of the Property, or (ii) amounts paid to the Reserve Funds, less (A) management fees equal to the greater of (1) assumed management fees of three
percent (3%) of Gross Income From Operations or (2) the actual management fee incurred (excluding the national sales office fee, the central marketing fee and the reservation fee as provided in the Management Agreement), (B) assumed Replacement
Reserve Fund contributions equal to the FF&E Factor multiplied by Gross Income From Operations, and (C) Lease Termination Payments; and 
  
 (b) the denominator is the aggregate amount of Debt Service and debt service under the Mortgage Loan which would be due and payable for a 12 full calendar
month period, calculated on the then-outstanding principal, calculated at an interest rate constant (said constant includes both interest and amortization) equal to the Contract Rate and the Mortgage Contract Rate, respectively. 
  
 “Debt Service Reserve” shall have the meaning set forth in
Section 7.6.1 hereof. 
  
 “Debt Service Reserve
Deposit” shall mean an amount equal to $1,503,125.00. 
  
 “Default” shall mean the occurrence of any event hereunder or under any other Loan Document which, but for the giving of notice or passage of time, or both, would be an Event of Default. 
  
 “Default Rate” shall mean, with respect to the Loan, a rate
per annum equal to the lesser of (a) the maximum rate permitted by applicable law, or (b) five percent (5%) above the Applicable Interest Rate. 
  
 “Disclosure Document” shall have the meaning set forth in Section 5.1.10(i) hereof. 
  
 “Distributions” shall have the meaning set forth in Section
3.3(b) hereof. 
  
 “Eligible Account” shall mean
a separate and identifiable account from all other funds held by the holding institution that is either (a) an account or accounts maintained with a federal or State chartered depository institution or trust company which complies with the
definition of Eligible Institution or (b) a segregated trust account or accounts maintained with a federal or State chartered depository institution or trust company acting in its fiduciary capacity which, in the case of a State chartered depository
institution or trust company, is subject to regulations substantially similar to 12 C.F.R. §9.10(b), having in either case a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by federal and State
authority. An Eligible Account will not be evidenced by a certificate of deposit, passbook or other instrument. 
  
 “Eligible Institution” with respect to any depository institution or trust company, (a) the short term unsecured debt obligations or
commercial paper of which are rated at least A-1+ by S&P and P-1 by Moody’s in the case of accounts in which funds are held for 30 days or less, or (b) the long term unsecured debt obligations of which are rated at least “AA” by
S&P and “Aa2” by Moody’s in the case of accounts in which funds are held for more than 30 days. 
  
 “Emergency Repairs” shall have the meaning set forth in Section 6.4(d). 
  
 “Employee Parking Lot Parcel” shall mean that certain parcel of land more particularly described on
Exhibit H attached hereto and made a part hereof. 
  

 5 

 “Employee Parking Lot Lease” shall have the meaning set forth in Section 8.1(xxiv)
hereof. 
  
 “Environmental Indemnity” shall mean
that certain Environmental Indemnity Agreement (Mezzanine Loan) dated as of the date hereof executed by Borrower and Indemnitor in connection with the Loan for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time. 
  
 “Environmental
Law” shall mean any present and future federal, State and local laws, statutes, ordinances, rules, regulations, standards, policies and other governmental directives or requirements, as well as common law, that apply to Borrower or the
Property and relate to Hazardous Materials, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act and the Resource Conservation and Recovery Act. 
  
 “Environmental Liens” shall have the meaning set forth in
Section 5.1.19 hereof. 
  
 “Environmental
Reports” shall have the meaning set forth in Section 4.1.26 hereof. 
  
 “Equipment” shall have the meaning set forth in Section 5.2.12(f) hereof. 
  
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as the same may be amended from time to time. 
  
 “Eurodollar Rate” shall mean, with respect to any Interest
Period, an interest rate per annum equal to LIBOR plus 8.105932% per annum. 
  
 “Event of Default” shall have the meaning set forth in Section 8.1(a) hereof. 
  
 “Excess Cash Flow” shall have the meaning set forth in Section 3.7(b)(xi) hereof. 
  
 “Excess Cash Flow Account” shall have the meaning set forth
in Section 3.1(b)(x) hereof. 
  
 “Exchange Act”
shall have the meaning set forth in Section 9.2(a) hereof. 
  
 “Exchange Act Filing” shall have the meaning set forth in Section 9.2(a) hereof. 
  
 “Excluded Group” shall mean those holders of Series B Convertible Preferred Stock of Wyndham listed on Exhibit E hereto and their
Affiliates. 
  
 “Extension Fee” shall mean (i)
for the first Extension Term only, $0.00 and (ii) for each of the second and third Extension Term, an amount equal to one-half of one percent (0.5%) of the then outstanding principal amount of the Loan. 
  
 “Extension Notice” shall have the meaning set forth in
Section 2.2.9. 
  
 “Extension Term” shall have
the meaning set forth in Section 2.2.9. 
  
 “Extraordinary
Expense” shall mean an operating expense or capital expenditure with respect to the Property that (i) is not set forth on, or made or deemed made in compliance with and pursuant to, the Approved Annual Budget (ii) is not an Approved Expense
and (iii) is not subject to payment by withdrawals from the Replacement Reserve Account, or paid in connection with an emergency at the Property. Borrower shall deliver promptly to Lender a reasonably detailed explanation of such proposed
Extraordinary Expense for the reasonable approval of Lender. 
  

 6 

 “Extraordinary Expense Account” shall have the meaning set forth in Section 3.1(b)(ix)
hereof. 
  
 “FF&E Factor” shall mean
collectively, (A) when being applied to Gross Income From Operations excluding any Gross Income From Operations attributable to the operations of the casino (net-wins), four percent (4%) and (B) when being applied to Gross Income From Operations
attributable to the operations of the casino (net-wins), (1) one percent (1%) during the first and second Loan Years and (2) the greater of (i) one percent (1.0%) and (ii) a percentage equal to the ratio that the budgeted costs of Replacements, with
respect to the casino, based on the Casino Budget, bears to Gross Income From Operations for the period of such calculation, during the third, fourth and fifth Loan Years. 
  
 “FIRREA” means the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as the same may be
amended from time to time. 
  
 “Fiscal Year”
shall mean each twelve (12) month period commencing on January 1 and ending on December 31 during the term of the Loan. 
  
 “Fitch” shall mean Fitch, Inc. 
  
 “Flood Insurance Acts” shall have the meaning set forth in Section 6.1 hereof. 
  
 “Force Majeure” shall mean the failure of Borrower to
perform any obligation hereunder by reason of any act of God, enemy or hostile government action, civil commotion, insurrection, sabotage, strikes or lockouts or any other reason solely due to cause or causes beyond the control of Borrower or any
Affiliate of Borrower. 
  
 “Foreign Taxes” shall
mean any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority excluding, in the case of
Lender or any successor and/or assign of Lender, net income and franchise taxes imposed on such entity. 
  
 “GAAP” shall mean generally accepted accounting principles in the United States of America as of the date of the applicable financial
report. 
  
 “Governmental Authority” shall mean
any court, board, agency, commission, office, officer or other authority of any nature whatsoever for any governmental unit (federal, State, commonwealth, county, district, municipal, city, country or otherwise) or quasi-governmental unit whether
now or hereafter in existence. 
  
 “Gross Income From
Operations” shall mean, with respect to the Property, all income, computed in accordance with GAAP and the Uniform System of Accounts, derived by and/or Mortgage Borrower, from the direct and indirect ownership and operation of the
Property, from whatever source, including, but not limited to, Rents, Accounts Receivable, utility charges, escalations, forfeited security deposits, interest on credit accounts, service fees or charges, license fees, parking fees, rent concessions
or credits, other required pass-throughs, amounts relating to the operation of the casino at the Property (net win only), and interest on applicable Reserve Funds, but excluding sales, use and occupancy or other taxes on receipts required to be
accounted for by Borrower and/or Mortgage Borrower, to any Governmental Authority, refunds an uncollectible accounts, sales of furniture, fixtures and equipment, Insurance Proceeds (other than business interruption or other loss of income
insurance), Awards, rents, revenues and receipts of tenants and concessionaires located at the Property, unforfeited security deposits, utility and other similar deposits and any disbursements to any Mortgage Borrower or Borrower from the Reserve
Funds. 
  

 7 

 “Ground Lease” shall mean the Employee Parking Lot Parcel and any ground lease which
creates Mortgage Borrower’s leasehold estate in a Leasehold Property. 
  
 “Ground Lease Escrow Fund” shall have the meaning set forth in Section 7.4 hereof. 
  
 “Ground Rent” shall have the meaning set forth in Section 7.4 hereof. 
  
 “Ground Rent Account” shall have the meaning set forth in Section 3.1(b)(vii) hereof. 
  
 “Group” shall mean any Person or Persons acting together
which would constitute a “group” for purposes of Section 13(d) of the Exchange Act, together with all affiliates and associates (as defined in Rule 12 b-2 under the Exchange Act) thereof. 
  
 “Guarantor” shall mean Wyndham International, Inc.

  
 “Guaranty” shall mean that certain Guaranty
of Recourse Obligations of Borrower (Mezzanine Loan) dated as of the date hereof from Guarantor to Lender as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Hazardous Materials” shall mean petroleum and petroleum
products and compounds containing them, including gasoline, diesel fuel and oil; explosives; flammable materials; radioactive materials; polychlorinated biphenyls (“PCBs”) and compounds containing them; lead and lead-based paint; asbestos
or asbestos-containing materials in any form that is friable; toxic mold; underground or above-ground storage tanks, whether empty or containing any substance; any substance the presence of which on the Property is prohibited by any federal, State
or local authority; any substance that requires special handling; and any other material or substance now or in the future defined as a “hazardous substance,” “hazardous material”, “hazardous waste,” “toxic
substance,” “toxic pollutant,” “contaminant,” “pollutant” or other words of similar import within the meaning of any Environmental Law. 
  
 “Improvements” shall mean the building, fixtures, additions, enlargements, extensions, modifications,
repairs, replacements, and improvements now or hereinafter erected or located on the Land. 
  
 “Indebtedness” of a Person, at a particular date, means the sum (without duplication) at such date of (a) all indebtedness or liability of such Person for borrowed money; (b) obligations evidenced by
bonds, debentures, notes, or other similar instruments; (c) obligations for the deferred purchase price of property or services (including trade obligations); (d) obligations under letters of credit; (e) all guaranties, endorsements (other than for
collection or deposit in the ordinary course of business) and other contingent obligations to purchase, to provide funds for payment, to supply funds, to invest in any Person, or otherwise to assure a creditor against loss; and (f) obligations
secured by any Liens, whether or not the obligations have been assumed. 
  
 “Indemnified Parties” shall mean Lender, any Person who is or will have been involved in the origination of the Loan, any Person who is or will have been involved in the servicing of the Loan, any Person in whose name the
encumbrance created by the Security Instruments is or will have been recorded, Persons and entities who may hold or acquire or will have held a full or partial interest in the Loan, the holders of any Securities, as well as custodians, trustees and
other fiduciaries who hold or have held a full or partial interest in the Loan for the benefit of third parties) as well as the respective directors, officers, shareholders, partners, members, employees, agents, servants, representatives,
contractors, subcontractors, affiliates, subsidiaries, participants, successors and assigns of any and all of the foregoing (including, but not limited to, any other Person who holds or acquires or will have held a participation or 

  

 8 

 
other full or partial interest in the Loan, Collateral or the Property, whether during the term of the Loan or as a part of or following a foreclosure of the
Loan and including, but not limited to, any successors by merger, consolidation or acquisition of all or a substantial portion of Lender’s assets and business), provided, however, that any indemnification provided for in any of the Loan
Documents shall not, directly or indirectly, extend to the benefit of or be transferred to any transferee or assignee of any Indemnified Party (other than to the successor or assigns of an Indemnified Party succeeding to such Indemnified
Party’s direct or indirect interest in the Loan) or to any purchaser or future owner of any portion of the Collateral or the Property, unless such purchaser or owner was previously an Indemnified Party. 
  
 “Indemnitor” shall mean Wyndham International, Inc.

  
 “Independent Director” shall have the meaning
set forth in Section 4.1.22(aa). 
  
 “Initial Interest
Period” shall mean the period commencing from and including the Closing Date to and including (a) the 14th
day of the month in which the Closing Date occurs, if the Closing Date occurs prior to the 14th day of the month or
(b) the 14th day of the immediately succeeding calendar month after the Closing Date, if the Closing Date occurs on
or after the 14th day of the month. 
  
 “Insolvency Opinion” shall mean that certain non-consolidation opinion letter dated the Closing Date
delivered by Akin, Gump, Strauss, Hauer & Feld LLP in connection with the Loan. 
  
 “Institutional Lender” shall mean any insurance company, bank, trust company, savings and loan association, savings bank, investment bank, indenture trustee for publicly traded debt or similar
financial institution. 
  
 “Insurance Premium
Account” shall have the meaning set forth in Section 3.1(b)(ii). 
  
 “Insurance Premiums” shall have the meaning set forth in Section 6.1(a) hereof. 
  
 “Insurance Proceeds” shall have the meaning set forth in Section 6.4(a) hereof. 
  
 “Intercreditor Agreement” shall have the meaning set forth
in Section 10.31. 
  
 “Interest Period” shall
mean, in connection with the calculation of interest accrued with respect to any specified Payment Date, the period from and including the fifteenth (15th) day of the prior month to and including the fourteenth (14th) day of the calendar month in
which the applicable Payment Date occurs; provided, however, that with respect to the first Payment Date occurring after the Closing Date, the Interest Period shall be the period from and including the Closing Date to and including (a) the
14th day of the month in which such Payment Date occurs, if the Closing Date occurs prior to the 14th day of the month or (b) the 14th day of the immediately succeeding calendar month after the Closing Date, if the Closing Date occurs on or after the 14th day of the month. Each Interest Period shall be a full month and shall not be shortened by reason of any payment of the Loan prior to the expiration of such
Interest Period. 
  
 “Interest Rate Cap
Agreement” shall mean an interest rate cap agreement (together with the confirmation and schedules relating thereto) between the Counterparty and Borrower obtained by Borrower. The interest rate cap agreement shall be written on the then
current standard ISDA documentation, and shall provide for interest periods and calculations consistent with the payment terms of the Agreement. After delivery of a Replacement Interest Rate Cap Agreement to Lender, the term “Interest Rate
Cap Agreement” shall be deemed to mean such Replacement Interest Rate Cap Agreement. 
  

 9 

 “Interest Rate Cap Event” shall mean the earlier to occur of (i) the date on which LIBOR
first equals or exceeds 5.75% or (ii) notice from Lender that a Securitization is expected to occur within the next ten (10) days. 
  
 “Interest Shortfall” shall have the meaning set forth in Section 2.3.1(b). 
  
 “Investor” shall have the meaning set forth in Section 5.1.10(q). 
  
 “Land” shall mean the real property described on Exhibit
F attached hereto and made a part hereof. 
  
 “Lease
Termination Payments” shall mean all payments made to Borrower in connection with any termination, cancellation, surrender, sale or other disposition of any Lease. 
  
 “Leasehold Property” shall mean the Employee Parking Lot Parcel. 
  
 “Leases” shall mean, with respect to the Property, all
leases and other agreements affecting the use, enjoyment or occupancy of the real property comprising the Property or the Improvements thereon heretofore or hereafter entered into (including, without limitation, subleases, licenses, concessions,
tenancies and other occupancy agreements covering or encumbering all or any portion of such real property), together with any guarantees, supplements, amendments, modifications, extensions and renewals of any thereof, and all additional remainders,
reversions, and other rights and estates appurtenant thereto. 
  
 “Legal Requirements” shall mean, with respect to the Property, all federal, State, commonwealth, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and
injunctions of Governmental Authorities affecting the Property or any part thereof, or the zoning, construction, use, alteration, occupancy or operation thereof, or any part thereof, whether now or hereafter enacted and in force, including without
limitation the Condominium Acts, and all permits, licenses and authorizations and regulations relating thereto, and all material covenants, agreements, restrictions and encumbrances contained in any instruments, either of record or known to
Borrower, at any time in force affecting the Property or any part thereof, including, without limitation, any which may (a) require repairs, modifications or alterations in or to the Property or any part thereof, or (b) in any way limit the use and
enjoyment thereof. 
  
 “Lehman” shall have the
meaning set forth in Section 9.2(b) hereof. 
  
 “Lehman
Group” shall have the meaning set forth in Section 9.2(b) hereof. 
  
 “Lender” shall have the meaning set forth in the introductory paragraph hereto, together with its successors and assigns. 
  
 “Letter of Credit” shall mean a transferable, clean, irrevocable, unconditional, standby letter of credit
in form, substance and amount reasonably satisfactory to Lender in its reasonable discretion, issued or confirmed by a commercial bank with a long term debt obligation rating of AA or better by S&P or Aa2 or better by Moody’s or a
comparable long term debt obligation rating as determined by other Rating Agencies and otherwise satisfactory to Lender in its reasonable discretion (the “Issuing Bank”). Lender consents to JPMorgan Chase Bank being the issuer of
any Letter of Credit delivered to Lender. The Letter of Credit shall be payable upon presentation of a sight draft only to the order of Lender or, upon the transfer of the Loan, to another party, as the case may be, at a New York City bank;
provided, however, Borrower may provide Lender with a replacement Letter of Credit meeting all of the requirements hereof 

  

 10 

 
in lieu of Lender transferring the existing Letter of Credit then held by Lender. The Letter of Credit shall have an initial expiration date of not less than
one (1) year and shall be automatically renewed for successive twelve (12) month periods for the term of the Loan and shall provide for multiple draws. The Letter of Credit shall be transferable by Lender and its successors and assigns at a New York
City bank. 
  
 “Liabilities” shall have the
meaning set forth in Section 9.2(b) hereof. 
  
 “LIBOR” shall mean, for the Initial Interest Period, the quoted offered rate for one-month United States dollar deposits with leading banks in the London interbank market that appears as of 11:00 a.m. (London time) on the
Closing Date on the display page designated as Telerate Page 3750, and for each Interest Period thereafter the quoted offered rate for one-month United States dollar deposits with leading banks in the London interbank market that appears as of 11:00
a.m. (London time) on the related LIBOR Determination Date on the display page designated as Telerate Page 3750. 
  
 If, as of such time on the Closing Date or any LIBOR Determination Date, no quotation is given on Telerate Page 3750, then the Lender shall establish
LIBOR on such LIBOR Determination Date by requesting four Reference Banks meeting the criteria set forth herein to provide the quotation offered by its principal London office for making one-month United States dollar deposits with leading banks in
the London interbank market as of 11:00 a.m., London time, on such LIBOR Determination Date. 
  
 (i) If two or more Reference Banks provide such offered quotations, then LIBOR for the next Interest Period shall be the arithmetic mean
of such offered quotations (rounded upward if necessary to the nearest whole multiple of 1/1,000%). 
  
 (ii) If only one or none of the Reference Banks provides such offered quotations, then LIBOR for the next Interest Period shall be the
Reserve Rate. 
  
 (iii) If on any LIBOR
Determination Date, Lender is required but is unable to determine the LIBOR in the manner provided in paragraphs (i) and (ii) above, LIBOR for the next Interest Period shall be LIBOR as determined on the preceding LIBOR Determination Date.

  
 The establishment of LIBOR on each LIBOR Determination Date by
the Lender shall be final and binding absent manifest error. 
  
 “LIBOR Business Day” shall mean a day upon which United States dollar deposits may be dealt in on the London and the New York City interbank markets and commercial banks and foreign exchange markets are open in London and
New York City. 
  
 “LIBOR Determination Date”
shall mean, with respect to any Interest Period, the date that is two (2) LIBOR Business Days prior to the first day of such Interest Period. Notwithstanding the foregoing, LIBOR shall be redetermined within any Interest Period two (2) LIBOR
Business Days prior to a Securitization in accordance with Section 2.2.2 hereof for the remainder of such Interest Period. 
  
 “Licenses” shall have the meaning set forth in Section 4.1.16(g) hereof. 
  
 “Lien” shall mean any mortgage, deed of trust, lien, pledge, hypothecation, assignment, security interest,
or any other encumbrance, charge or transfer of, on any Property, the Collateral or other property, or affecting any Borrower, any Mortgage Borrower, any Property, any portion thereof or any interest therein, including, without limitation, any
conditional sale or other title retention agreement, any 

  

 11 

 
financing lease having substantially the same economic effect as any of the foregoing, the filing of any financing statement, and mechanic’s,
materialmen’s and other similar liens and encumbrances. 
  
 “Loan” shall mean the loan made to Borrower evidenced by the Note, this Agreement and other Loan Documents, as the same may be amended, restated, modified, extended or split from time to time. 
  
 “Loan Documents” shall mean collectively this Agreement, the
Note, the Security Instruments, the Environmental Indemnity, the Guaranty of Recourse Obligations, the Conditional Assignment of Management Agreement and all other documents executed and/or delivered by Borrower, and/or others, in connection with
the Loan. 
  
 “Loan Year” shall mean each 365 or
366, as applicable, day period thereafter commencing on the Closing Date. 
  
 “Lockbox Account” shall have the meaning set forth in Section 3.1(b) hereof. 
  
 “Lockbox Bank” shall mean any Eligible Institution selected by Mortgage Lender. 
  
 “Lock-Out Period” shall mean the period commencing on the
Closing Date and ending on the next occurring Payment Date following the second (2nd) anniversary of the Closing
Date. 
  
 “Losses” shall mean any and all claims,
suits, liabilities (including, without limitation, strict liabilities), actions, proceedings, obligations, debts, direct actual damages or losses, costs, expenses, fines, fees, charges, fees, expenses, judgments, awards, amounts paid in settlement
of whatever kind or nature (including, but not limited to, reasonable attorneys’ fees and other costs of defense, investigation and settlement of Losses). 
  

“Management Agreement” shall mean, with respect to the Property, the management agreement entered into by and between Mortgage
Borrower and Manager, pursuant to which the Manager is to provide management and other services with respect to the Property (including, without limitation, the service agreement between Manager and WMC Puerto Rico, Inc.), or, if the context
requires, the Replacement Management Agreement executed in accordance with the terms and provisions of this Agreement and the Mortgage Loan Documents. 
  
 “Manager” shall collectively mean Williams Hospitality Group Inc. and WMC Puerto Rico Inc., or, if the context requires, a Qualified
Manager who is managing each applicable Property in accordance with the terms and provisions of this Agreement. 
  
 “Material Lease” shall mean any Lease (a) demising in excess of 2,500 square feet, or (b) for parking operations/facilities. 

 
 “Maturity Date” shall mean the next occurring Payment
Date following the second (2nd) anniversary of the Closing Date or, if the Maturity Date has been extended pursuant
to Section 2.2.9 hereof, the last day of the applicable Extension Term, or such other date on which the final payment of principal of the Note becomes due and payable as therein or herein provided, whether at such stated maturity date, by
declaration of acceleration, or otherwise. 
  
 “Maximum
Legal Rate” shall mean the maximum nonusurious interest rate, if any, that at any time or from time to time may be contracted for, taken, reserved, charged or received on the indebtedness evidenced by the Note and as provided for herein or
the other Loan Documents, under the laws of such 

  

 12 

 
State or States whose laws are held by any court of competent jurisdiction to govern the interest rate provisions of the Loan. 
  
 “Mezzanine Loan Account” shall have the meaning set forth in
Section 3.1(b)(x). 
  
 “Miami Lease” shall mean
that certain lease dated June 5, 2001 between Leticia Eulalia Ferrer Cintron, as landlord and Posadas de Regency, Inc. (“Regency”), as tenant. 
  

“Miramar Parcel” shall mean that certain parcel of land more particularly described on Exhibit I. 
  
 “Miramar Parcel Lease” shall have the meaning set forth in
Section 8.1(a)(xxv) hereof. 
  
 “Monthly Debt Service
Payment Amount” shall mean the amount of interest and the Monthly Scheduled Amortization Payment due and payable on each Payment Date pursuant to the Note and Section 2 hereof. 
  
 “Monthly Ground Rent Deposit” shall have the meaning set forth in Section 7.4 hereof. 
  
 “Monthly Insurance Premium Deposit” shall have the meaning
set forth in Section 7.2 hereof. 
  
 “Monthly Scheduled
Amortization Payments” shall mean the aggregate amount of principal set forth on Schedule V hereof to be paid on each Payment Date. 
  
 “Monthly Tax Deposit” shall have the meaning set forth in Section 7.2 hereof. 
  
 “Moody’s” shall mean Moody’s Investors Service,
Inc. 
  
 “Mortgage Borrower” shall have the
meaning set forth in the Recitals hereof. 
  
 “Mortgage
Collateral” shall mean the Property and other collateral securing the Mortgage Loan. 
  
 “Mortgage Contract Rate” shall have the meaning ascribed to the term “Contract Rate” in the Mortgage Loan Agreement. 
  
 “Mortgage Lender” shall mean the owner and holder of the Mortgage Loan (or a portion thereof). 

 
 “Mortgage Loan” shall mean that certain loan in the
maximum principal amount of the $65,000,000.00 held by Mortgage Lender, evidenced by a promissory note made by Mortgage Borrower and secured by a mortgage Lien on the Mortgage Collateral. 
  
 “Mortgage Loan Agreement” shall mean that certain Loan Agreement dated as of the date hereof between
Mortgage Lender and Mortgage Borrower. 
  
 “Mortgage Loan
Debt Service Account” shall have the meaning set forth in Section 3.1(b). 
  
 “Mortgage Loan Documents” shall mean all documents or instruments evidencing, securing or guaranteeing the Mortgage Loan, including without limitation, the Mortgage Loan Agreement. 
  
 “Mortgage Loan Extension Option” shall have the meaning
ascribed to the term “Extension Option” in the Mortgage Loan Agreement. 
  

 13 

 “Mortgage Security Agreement” means that certain Security Agreement dated as of the date
hereof by Mortgage Borrower to Senior Lender and securing the Mortgage Loan. 
  
 “Net Cash Flow” for any period shall mean the amount obtained by subtracting Operating Expenses and Capital Expenditures for such period from Gross Income From Operations for such period. 

 
 “Net Cash Flow Schedule” shall have the meaning set forth
in Section 5.1.10(b) hereof. 
  
 “Net Liquidation Proceeds
After Debt Service” shall mean the remaining funds in the Lockbox Account from time to time after disbursement thereof in accordance with the terms of Section 3.7(b)(i) through (x) hereof. 
  
 “Net Operating Income” means, as to the Property, the amount
obtained by subtracting Operating Expenses from Gross Income From Operations. 
  
 “Net Proceeds” shall have the meaning set forth in Section 6.4(a) hereof. 
  
 “Note” shall mean that certain Promissory Note (Mezzanine Loan) in the original principal amount of $29,500,000.00 of even date herewith
made by Borrower in favor of Lender, as the same may be amended, restated, replaced, supplemented severed, split or otherwise modified from time to time. 
  
 “O&M Program” shall mean the lead based paint maintenance program developed by Borrower and approved by Lender, as the same may be
amended, replaced, supplemented or otherwise modified from time to time. 
  
 “Obligations” shall mean the payment of the Debt; and (ii) the performance of all other agreements, covenants, conditions and obligations of the Borrower and the other Restricted Parties contained
herein or in the other Loan Documents. 
  
 “Offering Document Date” shall have the meaning set forth in Section 5.1.10(j) hereof. 
  
 “Offering Materials” shall have the meaning set forth in Section 9.2(b) hereof. 
  
 “Officer’s Certificate” shall mean a certificate
delivered to Lender by Borrower which is signed by an authorized officer of Borrower. 
  
 “Operating Expenses” shall mean the total of all expenditures of Mortgage Borrower and Borrower, computed in accordance with GAAP and the Uniform System of Accounts, of whatever kind relating to the
operation, maintenance and management of the Property and the collateral securing the Mortgage Loan allocable to the Property that are incurred on a regular monthly or other periodic basis, including without limitation, utilities, ordinary repairs
and maintenance, insurance premiums, license fees, property taxes and assessments, advertising expenses, management fees, franchise fees, payroll and related taxes, computer processing charges, operational equipment or other lease payments
(including any Ground Rents payable under any Ground Lease) as permitted under the Mortgage Loan Documents, and other similar costs, but excluding depreciation, amortization of intangible items, Debt Service, debt service under the Mortgage Loan,
Capital Expenditures and contributions to the Reserve Funds. 
  
 “Other Charges” shall mean all ground rents, maintenance charges, impositions other than Taxes, and any other charges, including, without limitation, vault charges and license fees for the use of vaults, chutes and similar
areas adjoining such of the Property and such collateral securing the Mortgage Loan, 

  

 14 

 
now or hereafter levied or assessed or imposed against any such property or collateral, as applicable, or any part thereof. 
  
 “Paydown Amount” shall have the meaning set forth in Section
3.6. 
  
 “Payment Date” shall mean the ninth
(9th) day of each calendar month during the term of the Loan or, if such day is not a Business Day, the immediately preceding Business Day. 
  
 “Performance Cure” shall have the meaning set forth in Section 3.6. 
  
 “Permitted Encumbrances” shall mean, with respect to the Property, collectively, (a) the Liens and security
interests created by the Mortgage Loan Documents encumbering the Property, (b) all Liens, encumbrances and other matters disclosed in the Title Insurance Policy or marked up final title commitment (including those disclosed in and insured over
thereby) relating to the Property or any part thereof, (c) Liens, if any, for Taxes imposed by any Governmental Authority not yet due or delinquent or being contested in good faith and by appropriate proceedings in accordance with the terms hereof
and the terms of the Mortgage Loan Documents encumbering the Property, (d) any and all easements, licenses, covenants, restrictions or other agreements which may hereafter be granted by Borrower in accordance with the terms hereof and a Mortgage
Borrower in accordance with the terms of the Mortgage Loan Documents encumbering the Property, (e) rights of existing and future tenants, licensees and concessionaires, as tenants, licensees or concessionaires only, pursuant to Leases in effect as
of the date hereof or entered into in accordance with the terms hereof and the terms of the Mortgage Loan Documents encumbering the Property, (f) any Lien and security interest expressly permitted pursuant to the Mortgage Loan Documents encumbering
the Property, and (g) such other title and survey exceptions as Lender has approved or may approve in writing in Lender’s sole discretion. 
  
 “Permitted FF&E Financing” shall have the meaning set forth in Section 5.2.12(f) hereof. 
  
 “Permitted Investments” shall mean any one or more of the
following obligations or securities acquired at a purchase price of not greater than par, including those issued by Servicer, the trustee under any Securitization or any of their respective Affiliates, payable on demand or having a maturity date not
later than the Business Day immediately prior to the first Payment Date following the date of acquiring such investment and meeting one of the appropriate standards set forth below: 
  
 (i) obligations of, or obligations fully guaranteed as to payment of principal and interest by, the United
States or any agency or instrumentality thereof provided such obligations are backed by the full faith and credit of the United States of America including, without limitation, obligations of: the U.S. Treasury (all direct or fully guaranteed
obligations), the Farmers Home Administration (certificates of beneficial ownership), the General Services Administration (participation certificates), the U.S. Maritime Administration (guaranteed Title XI financing), the Small Business
Administration (guaranteed participation certificates and guaranteed pool certificates), the U.S. Department of Housing and Urban Development (local authority bonds) and the Washington Metropolitan Area Transit Authority (guaranteed transit bonds);
provided, however, that the investments described in this clause must (A) have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B) if rated by S&P, must not have an “r” highlighter affixed to their
rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (D) such investments must not be
subject to liquidation prior to their maturity; 
  
 (ii) Federal Housing Administration debentures; 
  

 15 

 (iii) obligations of the following United States government sponsored agencies: Federal
Home Loan Mortgage Corp. (debt obligations), the Farm Credit System (consolidated systemwide bonds and notes), the Federal Home Loan Banks (consolidated debt obligations), the Federal National Mortgage Association (debt obligations), the Financing
Corp. (debt obligations), and the Resolution Funding Corp. (debt obligations); provided, however, that the investments described in this clause must (A) have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B)
if rated by S&P, must not have an “r” highlighter affixed to their rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must
move proportionately with that index, and (D) such investments must not be subject to liquidation prior to their maturity; 
  
 (iv) federal funds, unsecured certificates of deposit, time deposits, bankers’ acceptances and repurchase agreements with maturities
of not more than 365 days of any bank, the short term obligations of which at all times are rated in the highest short term rating category by each Rating Agency (or, if not rated by all Rating Agencies, rated by at least one Rating Agency in the
highest short term rating category and otherwise acceptable to each other Rating Agency, as confirmed in writing that such investment would not, in and of itself, result in a downgrade, qualification or withdrawal of the initial, or, if higher, then
current ratings assigned to the Securities or any class thereof); provided, however, that the investments described in this clause must (A) have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B) if rated by
S&P, must not have an “r” highlighter affixed to their rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move
proportionately with that index, and (D) such investments must not be subject to liquidation prior to their maturity; 
  
 (v) fully Federal Deposit Insurance Corporation-insured demand and time deposits in, or certificates of deposit of, or bankers’
acceptances with maturities of not more than 365 days and issued by, any bank or trust company, savings and loan association or savings bank, the short term obligations of which at all times are rated in the highest short term rating category by
each Rating Agency (or, if not rated by all Rating Agencies, rated by at least one Rating Agency in the highest short term rating category and otherwise acceptable to each other Rating Agency, as confirmed in writing that such investment would not,
in and of itself, result in a downgrade, qualification or withdrawal of the initial, or, if higher, then current ratings assigned to the Securities or any class thereof); provided, however, that the investments described in this clause must (A) have
a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B) if rated by S&P, must not have an “r” highlighter affixed to their rating, (C) if such investments have a variable rate of interest, such
interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (D) such investments must not be subject to liquidation prior to their maturity; 
  
 (vi) debt obligations with maturities of not more than 365
days and at all times rated by each Rating Agency (or, if not rated by all Rating Agencies, rated by at least one Rating Agency and otherwise acceptable to each other Rating Agency, as confirmed in writing that such investment would not, in and of
itself, result in a downgrade, qualification or withdrawal of the initial, or, if higher, then current ratings assigned to the Securities or any class thereof) in its highest long-term unsecured rating category; provided, however, that the
investments described in this clause must (A) have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B) if rated by S&P, must not have an “r” highlighter affixed to their rating, (C) if such
investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (D) such investments must not be subject to liquidation
prior to their maturity; 
  

 16 

 (vii) commercial paper (including both non-interest-bearing discount obligations and
interest-bearing obligations payable on demand or on a specified date not more than one year after the date of issuance thereof) with maturities of not more than 365 days and that at all times is rated by each Rating Agency (or, if not rated by all
Rating Agencies, rated by at least one Rating Agency and otherwise acceptable to each other Rating Agency, as confirmed in writing that such investment would not, in and of itself, result in a downgrade, qualification or withdrawal of the initial,
or, if higher, then current ratings assigned to the Securities or any class thereof) in its highest short-term unsecured debt rating; provided, however, that the investments described in this clause must (A) have a predetermined fixed dollar of
principal due at maturity that cannot vary or change, (B) if rated by S&P, must not have an “r” highlighter affixed to their rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single
interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (D) such investments must not be subject to liquidation prior to their maturity; 
  
 (viii) units of taxable money market funds or mutual funds with maturities of not more than 365 days and
which funds are regulated investment companies, seek to maintain a constant net asset value per share and invest solely in obligations backed by the full faith and credit of the United States, which funds have the highest rating available from each
Rating Agency (or, if not rated by an Rating Agencies, rated by at least one Rating Agency and otherwise acceptable to each other Rating Agency, as confirmed in writing that such investment would not, in and of itself, result in a downgrade,
qualification or withdrawal of the initial, or, if higher, then current ratings assigned to the Securities or any class thereof) for money market funds or mutual funds; and 
  
 (ix) any other security, obligation or investment which has been approved as a Permitted Investment in
writing by (a) Lender and (b) each Rating Agency, as evidenced by a written confirmation that the designation of such security, obligation or investment as a Permitted Investment will not, in and of itself, result in a downgrade, qualification or
withdrawal of the initial, or, if higher, then current ratings assigned to the Securities or any class thereof by such Rating Agency; 
  
 provided, however, that no obligation or security shall be a Permitted Investment if (A) such obligation or security evidences a right to receive only interest payments
or (B) the right to receive principal and interest payments on such obligation or security are derived from an underlying investment that provides a yield to maturity in excess of 120% of the yield to maturity at par of such underlying investment.

  
 “Person” shall mean any individual,
corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated association, any Governmental Authority and any fiduciary acting in such capacity on behalf of any of the foregoing. 
  
 “Personal Property” shall, with respect to the Mortgage
Collateral, have the meaning set forth in the Mortgage Loan Documents. 
  
 “Physical Condition Report” shall mean, with respect to the Property, a structural engineering report prepared by a company satisfactory to Lender regarding the physical condition of the Property, satisfactory in form and
substance to Lender in its sole discretion, which report shall, among other things, (a) confirm that the Property and its use complies, in all material respects, with all applicable Legal Requirements (including, without limitation, zoning,
subdivision and building laws) and (b) include a copy of the use permit with respect to all Improvements on the Property. 
  

 17 

 “Plan” shall mean an employee benefit plan (as defined in section 3(3) of ERISA) whether
or not subject to ERISA or a plan or other arrangement within the meaning of section 4975 of the Code. 
  
 “Pledged Interests” shall have the meaning set forth in the recitals of this Agreement. 
  
 “Pledgor” shall mean PPRA Mezz Owner, Inc., a Delaware
corporation. 
  
 “Policies” shall have the
meaning specified in Section 6.1 (a) hereof. 
  
 “Prime
Rate” shall mean, for a particular date, the annual rate of interest publicly announced by Citibank, N.A. in New York, New York, as its base rate in effect for such date, as such rate shall change from time to time. If Citibank, N.A. ceases
to announce a base rate, Prime Rate shall mean the rate of interest published in The Wall Street Journal from time to time as the “Prime Rate” for such particular date. If more than one “Prime Rate” is published in The
Wall Street Journal for a particular day, the average of such “Prime Rates” shall be used, and such average shall be rounded up to the nearest one-eighth of one percent (0.125%). If The Wall Street Journal ceases to publish the
“Prime Rate”, Lender shall select an equivalent publication that publishes such “Prime Rate”, and if such “Prime Rates” are no longer generally published or are limited, regulated or administered by a governmental or
quasigovernmental body, then Lender shall select, in its reasonable discretion, a comparable interest rate index. 
  
 “Principal” shall have the meaning specified in Section 4.1.22 hereof. 
  
 “Prohibited Person” shall mean any Person: 
  
 (a) listed in the Annex to, or otherwise subject to the provisions of, the Executive Order No. 13224 on
Terrorist Financing, effective September 24, 2001, and relating to Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (the “Executive Order”); 
  
 (b) that is owned or controlled by, or acting for or on
behalf of, any Person that is listed to the Annex to, or is otherwise subject to the provisions of, the Executive Order; 
  
 (c) with whom Lender is prohibited from dealing or otherwise engaging in any transaction by any terrorism or money laundering law,
including the Executive Order; 
  
 (d) who
commits, threatens or conspires to commit or supports “terrorism” as defined in the Executive Order; 
  
 (e) that is named as a “specially designated national and blocked person” on the most current list published by the U.S.
Treasury Department Office of Foreign Assets Control at its official website, http://www.treas.gov.ofac/t11sdn.pdf or at any replacement website or other replacement official publication of such list; or 
  
 (f) who is an Affiliate of or affiliated with a Person
listed above. 
  
 “Property” shall mean Mortgage
Borrower’s interest in any and all, respectively, of the real property comprising, and the personal property and Improvements on, those certain parcels more particularly described on Exhibit F hereto. 
  
 “Property Account” shall have the meaning specified in
Section 3.1(a) hereof. 
  

 18 

 “Property Account Bank” shall mean Banco Popular, provided that the ratings assigned to
their long term debt obligations are at least one level below the current ratings assigned to Banco Popular as of the date hereof by the Rating Agencies or any other bank located and principally doing business in Puerto Rico, provided the long term
debt obligation of such other local bank is rated at least A- by S&P, A2 by Moody’s and A by Fitch or any other bank, provided that such other bank remains an Eligible Institution, and any successor Eligible Institutions or other Eligible
Institutions or banks selected by Borrower, subject to Lender’s reasonable approval. 
  
 “Provided Information” shall have the meaning set forth in Section 9.1(a) hereof. 
  
 “Public Company” shall mean a corporation or other Person whose (i) stock or ownership interests or (ii) depository receipts or their
equivalent are publicly traded on a nationally recognized stock exchange, including, without limitation, NASDAQ or on the leading recognized stock exchange in Spain, Germany, Italy, Canada, France, Tokyo, Australia, Singapore, England or Hong Kong,
or in another country which requires companies publicly traded on such leading exchange to provide public information reasonably comparable to that required in the United States. 
  
 “Puerto Rico Business Day” shall mean any day other than a Saturday, Sunday or any other day on which
national banks in Puerto Rico are not open for business. 
  
 “Qualified Manager” shall mean, with respect to the Property, a reputable and experienced professional management organization (a) which manages, together with its affiliates, ten (10) or more first class hotel properties
of a type and size similar to the Property, totaling in the aggregate no less than 3,000 rooms, and (b) prior to whose employment as manager of the Property (i) prior to the occurrence of a Securitization (defined below), such employment shall have
been approved by Lender, Lender’s approval not to be unreasonably withheld, conditioned or delayed, subject to the approval rights of Mortgage Lender, applying the standards of a reasonably prudent institutional mortgage lender, and (ii) after
the occurrence of a Securitization, Lender shall have received written confirmation from the Rating Agencies that the employment of such manager will not result in a downgrade, withdrawal or qualification of the initial, or if higher, then current
ratings of the Securities or any class thereof. 
  
 “Qualified Transferee” shall mean any one of the following entities, subject to the reasonable determination of Lender that such entity satisfies the applicable requirements set forth in this definition: 
  

	 	(a)	a pension fund, pension trust or pension account that has total assets of at least $500 million that are managed by an entity that controls or manages at least $1 billion of real
estate equity assets; 

  

	 	(b)	a pension fund advisor that controls or manages at least $1 billion of real estate equity assets immediately prior to any proposed transfer hereunder; 

  

	 	(c)	an insurance company that is subject to supervision by the insurance commission, or a similar official or agency, of a State or territory of the United States (including the
District of Columbia), which has a net worth, as of a date no more than six (6) months prior to the date of the proposed transfer hereunder, of at least $500 million and controls real estate equity assets of at least $1 billion immediately prior to
any proposed transfer hereunder; 

  

	 	(d)	 a corporation organized under the banking or trust company laws of the United States or any State or territory of the United States (including the District of
Columbia) that has a combined capital and surplus of at least $500 million and 

  

 19 

	 	 
that immediately prior to a proposed transfer hereunder controls real estate equity assets of at least $1 billion; or 

  

	 	(e)	any entity (a) with a long-term unsecured debt rating from the Rating Agencies of at least BBB- (or its equivalent) or (b) (1) that owns or operates, together with its Affiliates,
at least ten (10) first class hotel properties, (2) that has a net worth as of a date no more than six (6) months prior to the date of any proposed transfer hereunder of at least $500 million and (3) that controls, together with its Affiliates, real
estate equity assets of at least $1 billion immediately prior to any proposed transfer hereunder. 

  
 “Rating Agencies” shall mean each of S&P, Moody’s and Fitch, and any other nationally-recognized statistical rating agency which
has been approved by Lender provided that following a Securitization, such agency shall have rated the Securities. 
  
 “Reference Bank” shall mean a leading bank engaged in transactions in Eurodollar deposits in the international Eurocurrency market that
has an established place of business in London. If any such Reference Bank should be removed from the Telerate Page 3750 or in any other way fail to meet the qualifications of a Reference Bank, Lender may designate alternative Reference Banks
meeting the criteria specified above. 
  
 “Regency
Lease” shall mean that certain lease dated as of October 27, 2003 between Regency as landlord and Mortgage Borrower, as tenant. 
  
 “Registration Statement” shall have the meaning set forth in Section 9.2(b) hereof. 
  
 “Related Party” shall mean any direct or indirect member,
shareholder, partner, employee, director, affiliate, executive officer, principal, agent or representative of Borrower, Mortgage Borrower, or any successor or assigns of either or both; provided, however, that if a Related Party is a Public Company,
the holders of its shares shall be deemed not to be Related Parties. 
  
 “Release” with respect to any Hazardous Materials means any release, deposit, discharge, emission, leaking, leaching, spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing or
other movement of Hazardous Materials. 
  
 “REMIC
Trust” shall mean a “real estate mortgage investment conduit” within the meaning of Section 860D of the Code that holds the Note. 
  
 “Rents” shall have the meaning set forth in Article I of each of the Mortgage Security Agreements. 
  
 “Replacement Interest Rate Cap Agreement” means an interest
rate cap agreement from an Acceptable Counterparty that complies with the terms and conditions of this Agreement. 
  
 “Replacement Management Agreement” shall mean, with respect to the Property, collectively, (a) either (i) a management agreement with a
Qualified Manager substantially in the same form and substance as the Management Agreement, or (ii) a management agreement with a Qualified Manager, which management agreement shall be acceptable to Lender, which acceptance shall not be unreasonably
withheld, conditioned or delayed (subject to the approval rights of Mortgage Lender), applying the requirements of prudent mortgage loan lenders for the management of properties similar in size, scope and value of the Property by comparable managers
in form and substance, provided, with respect to this 

  

 20 

 
subclause (ii), Lender, at its option, may require that Borrower obtain confirmation from the applicable Rating Agencies that such management agreement will
not result in a downgrade, withdrawal or qualification of the then current rating of the Securities or any class thereof; and (b) a conditional assignment of management agreement substantially in the form of the conditional assignment of management
agreement being delivered in connection with the closing of the Loan and the Mortgage Loan or in the form then used by Mortgage Lender (or such other form acceptable to Lender, which acceptance shall not to be unreasonably withheld, conditioned or
delayed (subject to the approval rights of Mortgage Lender), applying the standards of prudent mortgage loan lenders for the management of properties similar in size, scope and value of the Property by comparable managers), executed and delivered to
Mortgage Lender (with a copy to Lender) by the Borrower and such Qualified Manager at Borrower’s expense. 
  
 “Replacement Reserve Account” shall have the meaning set forth in Section 7.3.1 hereof. 
  
 “Replacement Reserve Fund” shall have the meaning set forth
in Section 7.3.1 hereof 
  
 “Replacement Reserve
Deposit” shall mean, with respect to the Property, the positive number obtained by subtracting (i) the actual amount spent by the Mortgage Borrower for Replacements (including payments under Permitted FF&E Financing) for the calendar
month (the “Subject Month”) which is two (2) months prior to the month in which the applicable Replacement Reserve Deposit is due and payable (such amount actually spent by the Mortgage Borrower hereinafter referred to as the
“Actual Amount”), and (ii) the balance of any Shortfall (as defined in Section 7.3.1 hereof) from (iii) the product of (a) Gross Income From Operations for the Subject Month multiplied by (b) the FF&E Factor. 
  
 “Replacements” shall have the meaning set forth in Section
7.3.1 hereof. 
  
 “Required Ratio” shall mean
1.25 to 1.00. 
  
 “Required Repair Account” shall
have the meaning set forth in Section 3.1(b)(v) hereof. 
  
 “Required Repair Fund” shall have the meaning set forth in Section 7.1.1 hereof. 
  
 “Required Repairs” shall have the meaning set forth in Section 7.1.1 hereof. 
  
 “Reserve Fund Deposits” shall mean the amounts to be
deposited into the Reserve Funds for any given month. 
  
 “Reserve Funds” shall mean the Tax and Insurance Escrow Fund, the Replacement Reserve Fund, the Required Repair Fund, the Ground Lease Escrow Fund, the Debt Service Reserve or any other escrow fund established by this
Agreement and the Mortgage Loan Documents. 
  
 “Reserve
Rate” shall mean the rate per annum which Lender determines to be either (i) the arithmetic mean (rounded upwards if necessary to the nearest whole multiple of 1/1,000%) of the one-month United States dollar lending rates that at least
three major New York City banks selected by Lender are quoting, at 11:00 a.m. (New York time) on the relevant LIBOR Determination Date, to the principal London offices of at least two of the Reference Banks, or (ii) in the event that at least two
such rates are not obtained, the lowest one-month United States dollar lending rate which New York City banks selected by Lender are quoting as of 11:00 a.m. (New York time) on such LIBOR Determination Date to leading European banks. 
  

 21 

 “Restoration” shall mean, with respect to the Property, the repair and restoration of
the Property after a Casualty or Condemnation as nearly as possible to the condition the Property was in immediately prior to such Casualty or Condemnation, with such alterations as may be reasonably approved by Lender. 
  
 “Restricted Party” shall mean Borrower, Mortgage Borrower,
Principal, Indemnitor, any Guarantor, or any Affiliated Manager or any shareholder, partner, member or non-member manager, or any direct or indirect legal or beneficial owner of, Borrower, Mortgage Borrower, Principal, Indemnitor, any Guarantor, any
Affiliated Manager or any non-member manager; provided, however, that if a Restricted Party is a Public Company, the holders of its shares shall not be deemed Restricted Parties. 
  
 “S&P” shall mean Standard & Poor’s Ratings Group, a division of McGraw-Hill, Inc. 

 
 “Sale or Pledge” shall mean a voluntary or involuntary
sale, conveyance, transfer or pledge of a legal or beneficial interest. 
  
 “Securities” shall have the meaning set forth in Section 9.1 hereof. 
  
 “Securitization” shall have the meaning set forth in Section 9.1 hereof. 
  
 “Securities Act” shall have the meaning set forth in Section 9.2(a) hereof. 
  
 “Security Deposits” shall have the meaning set forth in Section 5.1.17(d). 
  
 “Security Instruments” shall mean collectively, those
certain Pledge and Security Agreements (Mezzanine Loan) executed by Borrower and Pledgor dated as of the date hereof for the benefit of Lender pledging the Collateral as security for the Loan, and financing statements further evidencing
Lender’s interest in the Collateral, all as may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Servicer” shall have the meaning set forth in Section 9.3 hereof. 
  
 “Servicing Agreement” shall have the meaning set forth in Section 9.3 hereof. 
  
 “Severed Loan Documents” shall have the meaning set forth in
Section 9.6 hereof. 
  
 “Spread Maintenance
Payment” shall mean a payment to Lender in an amount equal to the outstanding principal balance immediately prior to a repayment under the last paragraph of Section 2.3.1 hereof, multiplied by 8.105932%, divided by 12 and multiplied by the
number of months remaining in the Lockout Period. 
  
 “Standard Statements” shall have the meaning set forth in Section 5.1.10(i)(i) hereof. 
  
 “State” shall mean, with respect to the Property, the state or Commonwealth in which the Property or any part thereof is located.

  
 “Strike Rate” shall mean 5.75%. 

 
 “Survey” shall mean, with respect to the Property, a
survey prepared by a surveyor licensed in the Commonwealth of Puerto Rico and reasonably satisfactory to Lender and the company or companies issuing the Title Insurance Policies, and containing a certification of such surveyor reasonably
satisfactory to Lender. 
  

 22 

 “Tax Account” shall have the meaning set forth in Section 3.1 (b)(i). 
  
 “Tax and Insurance Escrow Fund” shall have the meaning set
forth in Section 7.2 hereof. 
  
 “Taxes” shall
mean all real estate and personal property taxes, assessments, water rates or sewer rents, now or hereafter levied or assessed or imposed against the Collateral or the Property or part thereof. 
  
 “Telerate Page 3750” means the display designated as page
3750 on the Dow Jones Telerate Service (or such other page as may replace page 3750 on that service or such other service as may be nominated by the British Bankers-Association as the information vendor for the purposes of displaying British
Bankers-Association Interest Settlement Rates for U.S. dollar deposits). 
  
 “Title Insurance Policy” shall mean, with respect to the Property, an ALTA mortgagee title insurance policy in the form (reasonably acceptable to Lender) (or, if the Property is located in a State or
Commonwealth which does not permit the issuance of such ALTA policy, such form as shall be permitted in such State or Commonwealth and reasonably acceptable to Lender) issued with respect to the Property and insuring the mortgage Lien encumbering
the Property. 
  
 “Transfer” shall have the
meaning set forth in Section 5.2.12(a) hereof. 
  
 “Triggering Event” shall have the meaning set forth in Section 3.6 hereof. 
  
 “UCC” or “Uniform Commercial Code” shall mean, with respect to the Property, the Uniform Commercial Code as in effect in the
Commonwealth of Puerto Rico. 
  
 “Underwriter
Group” shall have the meaning set forth in Section 9.2(b) hereof. 
  
 “Uniform System of Accounts” shall mean the Uniform System of Accounts for Hotels in effect from time to time as approved by the American Hotel and Motel Association. 
  
 “Unit” or “Units” shall mean the hotel
condominium units created pursuant to the Condominium Documents and described in the Declaration. 
  
 “Wyndham” shall mean Wyndham International, Inc. 
  

Section 1.2 Principles of Construction. 
  
 All references to sections and schedules are to sections and schedules in or to this Agreement unless otherwise specified. All uses of the word
“including” shall mean “including, without limitation” unless the context shall indicate otherwise. Unless otherwise specified, the words “hereof”, “herein” and “hereunder” and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. Unless otherwise specified, all meanings attributed to defined terms herein shall be equally applicable to both the
singular and plural forms of the terms so defined. 
  

 23 

	 	II.	GENERAL TERMS 

  
 Section 2.1 Loan Commitment; Disbursement to Borrower. 
  
 2.1.1 Agreement to Lend and Borrow 
  
 Subject to and upon the terms and conditions set forth herein, Lender hereby agrees to make and Borrower hereby agrees to accept the Loan on the Closing
Date. 
  
 2.1.2 Single Disbursement to Borrower 

 
 Borrower may request and shall receive only one borrowing hereunder in
respect of the Loan and any amount borrowed and repaid hereunder in respect of the Loan may not be reborrowed. 
  
 2.1.3 The Note, Security Instruments and Loan Documents 
  
 The Loan shall be evidenced by the Note, governed by this Agreement and secured by the Security Instruments and the other Loan Documents. 
  
 2.1.4 Use of Proceeds 
  
 Borrower shall use the proceeds of the Loan to (a) contribute capital to
Mortgage Borrower to: (1) repay and discharge any existing loans relating to the Property, (2) pay all past-due Basic Carrying Costs, if any, with respect to Property, (3) make deposits into the Reserve Funds required on the Closing Date in the
amounts provided herein, and/or (4) fund any working capital requirements of the Property and (b) pay costs and expenses incurred in connection with the closing of the Mortgage Loan and the Loan, as approved by Lender. The balance, if any, shall be
distributed to Borrower. 
  
 Section 2.2 Interest; Principal
Amortization; Loan Payments; Late Payment Charge; Extension. 
  
 2.2.1 Interest and Principal Amortization Generally 
  
 (a) Interest on the outstanding principal balance of the Loan shall accrue from the Closing Date to, but excluding, the date on which the entire Debt is paid in full, at maturity, by acceleration or otherwise, and be
payable at the Applicable Interest Rate. The outstanding principal balance of the Loan together with all accrued and unpaid interest thereon, shall be due and payable on the Maturity Date, or upon the earlier repayment of the Loan, at maturity, by
acceleration or otherwise. 
  
 (b) Monthly
installments of interest, in arrears, together with the Monthly Scheduled Amortization Payments shall be paid on each Payment Date commencing on the second Payment Date following the Closing Date and on each subsequent Payment Date thereafter up to
and including the Maturity Date; provided, however, that interest on the outstanding principal amount of the Loan for the period from the Closing Date through and including the fourteenth (14th) day of the month in which the Payment Date following the Closing Date occurs shall be paid by Borrower on the Closing Date. In addition to the payment of
interest at the Applicable Interest Rate, Borrower shall pay Additional Interest to Lender. The Additional Interest shall accrue and be fully earned on the Closing Date and except as otherwise provided herein shall be payable in full on the Maturity
Date, or upon the earlier repayment of the Loan, at maturity, by acceleration or otherwise. Portions of the Additional Interest shall be payable upon partial prepayments of the Loan by reason of releases of certain portions of the Collateral, as
more particularly described in, and in accordance with, Section 2.5. 
  
 (c) All amounts due under the Note and other Loan Documents shall be payable without deduction for setoff or counterclaim, but any such payment shall not constitute a waiver by Borrower of any claim or compulsory
counterclaim brought in a separate action. 
  

 24 

 2.2.2 Interest Calculation 
  
 (a) Interest on the outstanding principal balance of the Loan shall be calculated by multiplying (a) the actual number of
days elapsed in the period for which the calculation is being made by (b) a daily rate based on a three hundred sixty (360) day year by (c) the outstanding principal balance. 
  
 (b) Notwithstanding anything to the contrary contained herein, two (2) LIBOR Business Days prior to the date Lender intends
to close a Securitization, Lender shall redetermine LIBOR in accordance with the terms hereof. In the event the closing of such Securitization shall occur on a date which is not the first day of an Interest Period, interest on the Loan for the then
current Interest Period shall accrue (i) from the first day of such Interest Period through and including the day prior to the date of the closing of the Securitization, based upon the LIBOR rate which was in effect immediately preceding the date of
closing of such Securitization and (ii) from the date of the closing of such Securitization through and including the last day of such Interest Period, based upon the redetermined LIBOR rate. 
  
 2.2.3 Eurodollar Rate Unascertainable; Illegality; Increased Costs

  
 (a) (i) If Lender shall have determined (which determination
shall be conclusive and binding upon Borrower absent manifest error) that by reason of circumstances affecting the interbank eurodollar market, adequate and reasonable means do not exist for ascertaining LIBOR, then Lender shall forthwith give
notice by telephone of such determination, confirmed in writing, to Borrower at least one (1) Business Day prior to the last day of the related Interest Period. If such notice is given, the Loan shall bear interest at the Adjusted Prime Rate
beginning on the first day of the next succeeding Interest Period. 
  
 (ii) If, pursuant to the terms of this Section 2.2.3(a), the Loan is bearing interest at the Adjusted Prime Rate and Lender shall determine (which determination shall be conclusive and binding upon Borrower absent
manifest error) that the event(s) or circumstance(s) which resulted in such conversion shall no longer be applicable, Lender shall give notice thereof to Borrower by telephone of such determination, confirmed in writing, to Borrower as soon as
reasonably practical, but in no event later than one (1) Business Day prior to the last day of the then current Interest Period. If such notice is given, the Loan shall bear interest at the Eurodollar Rate beginning on the first day of the next
succeeding Interest Period. Notwithstanding any provision of this Agreement to the contrary, in no event shall Borrower have the right to elect to have the Loan bear interest at either the Eurodollar Rate or the Adjusted Prime Rate. 
  
 (b) If any requirement of law or any change therein or in the interpretation
or application thereof, shall hereafter make it unlawful for Lender in good faith to make or maintain the Loan bearing interest at the Eurodollar Rate, (I) the obligation of Lender hereunder to make the Loan bearing interest at the Eurodollar Rate
shall be canceled forthwith and (II) the Loan shall automatically bear interest at the Adjusted Prime Rate on the next succeeding Payment Date or within such earlier period as required by law. Borrower hereby agrees promptly to pay Lender (within
fifteen (15) days of Lender’s written demand therefor), any additional amounts necessary to compensate Lender for any reasonable costs incurred by Lender in making any conversion in accordance with this Agreement, including, without limitation,
any interest or fees payable by Lender to lenders of funds obtained by it in order to make or maintain the Loan hereunder. Upon written demand from Borrower, Lender shall demonstrate in reasonable detail the circumstances giving rise to
Lender’s determination and the calculation substantiating the Adjusted Prime Rate and any additional costs incurred by Lender in making the conversion. Lender’s written notice of such costs, as certified to Borrower, shall be conclusive
absent manifest error. 
  

 25 

 (c) In the event that any change in any requirement of law or in the interpretation or application
thereof, or compliance in good faith by Lender with any request or directive (whether or not having the force of law) hereafter issued from any central bank or other Governmental Authority: 
  

	 	(I)	shall hereafter impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets held by, or deposits or other liabilities in or
for the account of, advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of Lender which is not otherwise included in the determination of LIBOR hereunder; 

  

	 	(II)	shall, if the Loan is then bearing interest at the Eurodollar Rate, hereafter have the effect of reducing the rate of return on Lender’s capital as a consequence of its
obligations hereunder to a level below that which Lender could have achieved but for such adoption, change or compliance (taking into consideration Lender’s policies with respect to capital adequacy) by any amount deemed by Lender to be
material; or 

  

	 	(III)	shall, if the Loan is then bearing interest at the Eurodollar Rate, hereafter impose on Lender any other condition, the result of which is to increase the cost to Lender of making,
renewing or maintaining loans or extensions of credit or to reduce any amount receivable hereunder; 

  
 then, in any such case, Borrower shall promptly pay Lender (within fifteen (15) days of Lender’s written demand therefor), any additional amounts necessary to
compensate Lender for such additional cost or reduced amount receivable which Lender deems to be material as reasonably determined by Lender. If Lender becomes entitled to claim any additional amounts pursuant to this Section 2.2.3(c), Lender shall
provide Borrower with at least thirty (30) days prior written notice specifying in reasonable detail the event or circumstance by reason of which it has become so entitled and the additional amount required to fully compensate Lender for such
additional cost or reduced amount. A certificate as to any additional costs or amounts payable pursuant to the foregoing sentence submitted by Lender to Borrower shall be conclusive in the absence of manifest error. This provision shall survive
payment of the Note and the satisfaction of all other Obligations. 
  
 (d) Borrower agrees to indemnify Lender and to hold Lender harmless from any loss or expense which Lender sustains or incurs as a consequence of (I) any default after the expiration of any applicable notice or grace periods by Borrower in
payment of the principal of or interest on the Loan while bearing interest at the Eurodollar Rate, including, without limitation, any such loss or expense arising from interest or fees payable by Lender to lenders of funds obtained by it in order to
maintain the Eurodollar Rate, (II) any prepayment (whether voluntary or mandatory) of the Loan on a day that (A) is not the Payment Date immediately following the last day of an Interest Period with respect thereto or (B) is the Payment Date
immediately following the last day of an Interest Period with respect thereto if Borrower did not give the prior written notice of such prepayment required pursuant to the terms of this Agreement, including, without limitation, such loss or expense
arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain the Eurodollar Rate hereunder and (III) the conversion (for any reason whatsoever, whether voluntary or involuntary) of the Applicable Interest
Rate from the Eurodollar Rate to the Adjusted Prime Rate with respect to any portion of the outstanding principal amount of the Loan then bearing interest at the Eurodollar Rate on a date other than the Payment Date immediately following the last
day of an Interest Period, including, without limitation, such loss or expenses arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain the Eurodollar Rate hereunder (the amounts referred to in clauses
(I), (II) and (III) are herein referred to collectively as the “Breakage Costs”). This provision shall survive payment of the Loan in full and the satisfaction of all other Obligations. 
  

 26 

 2.2.4 Payment on Maturity Date 
  
 Borrower shall pay to Lender on the Maturity Date the outstanding principal balance of the Loan, all accrued and unpaid
interest thereon (including, without limitation, the Additional Interest), and all other amounts due hereunder and under the Note, the Security Instruments, and the other Loan Documents. 
  
 2.2.5 Payments after Default 
  

Except as provided in Section 3.8 hereof, upon the occurrence and during the continuance of an Event of Default interest on the outstanding principal
balance of the Loan and, to the extent permitted by law, overdue interest and other amounts due in respect of the Loan, shall accrue at the Default Rate, calculated from the date such payment was due without regard to any grace or cure periods
contained herein, such amounts to be applied by Lender to the payment of the Debt in such order as Lender shall determine in its sole discretion, including, without limitation, alternating applications thereof between interest and principal.
Interest at the Default Rate shall be computed from the occurrence of the Event of Default until the actual receipt and collection of the Debt (or that portion thereof that is then due). To the extent permitted by applicable law, interest at the
Default Rate shall be added to the Debt, shall itself accrue interest at the same rate as the Loan and shall be secured by the Security Instruments. This paragraph shall not be construed as an agreement or privilege to extend the date of the payment
of the Debt, nor as a waiver of any other right or remedy accruing to Lender by reason of the occurrence and during the continuance of any Event of Default; and Lender retains its rights under the Note to accelerate and continue to demand payment of
the Debt upon the happening and during the continuance of any Event of Default. 
  
 2.2.6 Late Payment Charge 
  
 Except as provided in Section 3.8 hereof, if any Monthly Debt Service Payment Amount is not paid by Borrower on the date on which it is due, Borrower shall pay to Lender upon demand an amount equal to the lesser of five percent (5%) of such
unpaid sum or the maximum amount permitted by applicable law in order to defray the expense incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss of the use of such delinquent payment. Any such
amount shall be secured by the Security Instruments and the other Loan Documents to the extent permitted by applicable law. 
  
 2.2.7 Usury Savings 
  
 This Agreement and the Note are subject to the express condition that at no time shall Borrower be obligated or required to pay interest on the principal
balance of the Loan at a rate which could subject Lender to either civil or criminal liability as a result of being in excess of the Maximum Legal Rate. If, by the terms of this Agreement or the other Loan Documents, Borrower is at any time required
or obligated to pay interest on the principal balance due hereunder at a rate in excess of the Maximum Legal Rate, the Applicable Interest Rate or the Default Rate, as the case may be, shall be deemed to be immediately reduced to the Maximum Legal
Rate and all previous payments in excess of the Maximum Legal Rate shall be deemed to have been payments in reduction of principal and not on account of the interest due hereunder. All sums paid or agreed to be paid to Lender for the use,
forbearance, or detention of the sums due under the Loan, shall, to the extent permitted by applicable law, be amortized, prorated, allocated, and spread throughout the full stated term of the Loan until payment in full so that the rate or amount of
interest on account of the Loan does not exceed the Maximum Legal Rate of interest from time to time in effect and applicable to the Loan for so long as the Loan is outstanding. 
  

 27 

 2.2.8 Taxes 
  
 If the Loan is bearing interest at the Eurodollar Rate, all payments made by Borrower hereunder shall be made free and clear
of, and without reduction for or on account of, Foreign Taxes, excluding, in the case of Lender, taxes measured by its net income, and franchise taxes imposed on it, by the jurisdiction under the laws of which Lender is organized or any political
subdivision thereof and, in the case of Lender, taxes measured by its overall net income, and franchise taxes imposed on it, by the jurisdiction of Lender’s applicable lending office or any political subdivision thereof. If any non-excluded
Foreign Taxes are required to be withheld from any amounts payable to Lender hereunder (and such Foreign Taxes are not a result of activities of Lender unrelated to the Loan or Borrower), the amounts so payable to Lender shall be increased to the
extent necessary to yield to Lender (after payment of all non-excluded Foreign Taxes) interest or any such other amounts payable hereunder at the rate or in the amounts specified hereunder. Whenever any non-excluded Foreign Tax is payable pursuant
to applicable law by Borrower, Borrower shall send to Lender an original official receipt, if available, or certified copy thereof showing payment of such non-excluded Foreign Tax. Borrower hereby indemnifies Lender for any incremental taxes,
interest or penalties that may become payable by Lender which may result from any failure by Borrower to pay any such non-excluded Foreign Tax when due to the appropriate taxing authority of which Lender has used its commercially reasonable efforts
to provide Borrower with prior written notice of or any failure by Borrower to remit to Lender the required receipts or other required documentary evidence, provided, however, in the event that Lender or any successor and/or assign of Lender is not
incorporated under the laws of the United States of America or a State thereof Lender agrees that, prior to the first date on which any payment is due such entity hereunder, it will deliver to Borrower (i) two duly completed copies of United States
Internal Revenue Service Form W-8BEN or W-8ECI or successor applicable form, as the case may be, certifying in each case that such entity is entitled to receive payments under the Note, without deduction or withholding of any United States federal
income taxes, and (ii) an Internal Revenue Service Form W-9 or successor applicable form, as the case may be, to establish an exemption from United States backup withholding tax. Each entity required to deliver to Borrower a Form W-8BEN or W-8ECI or
Form W-9 pursuant to the preceding sentence further undertakes to deliver to Borrower two further copies of the said letter and W-8BEN or W-8ECI or Form W-9, or successor applicable forms, or other manner of certification, as the case may be, on or
before the date that any such letter or form expires (which, in the case of the Form W-8ECI, is the last day of each U.S. taxable year of the non-U.S. entity) or becomes obsolete or after the occurrence of any event requiring a change in the most
recent letter and form previously delivered by it to Borrower, and such other extensions or renewals thereof as may reasonably be requested by Borrower, certifying in the case of a Form W-8BEN or W-8ECI that such entity is entitled to receive
payments under the Note without deduction or withholding of any United States federal income taxes, unless in any such case an event (including, without limitation, any change in treaty, law or regulation) has occurred prior to the date on which any
such delivery would otherwise be required which renders all such forms inapplicable or which would prevent such entity from duly completing and delivering any such letter or form with respect to it and such entity advises Borrower that it is not
capable of receiving payments without any deduction or withholding of United States federal income tax, and in the case of a Form W-9, establishing an exemption from United States backup withholding tax. Notwithstanding the foregoing, if such entity
fails to provide a duly completed Form W-8BEN or W-8ECI or other applicable form and, under applicable law, in order to avoid liability for Foreign Taxes, Borrower is required to withhold on payments made to such entity that has failed to provide
the applicable form, Borrower shall be entitled to withhold the appropriate amount of Foreign Taxes. In such event, Borrower shall promptly provide to such entity evidence of payment of such Foreign Taxes to the appropriate taxing authority and
shall promptly forward to such entity any official tax receipts or other documentation with respect to the payment of the Foreign Taxes as may be issued by the taxing authority. 
  

 28 

 Section 2.2.9 Extension of Maturity Date 
  
 Borrower shall have the option to extend the term of the Loan beyond the
initial Maturity Date for three (3) successive terms (each, an “Extension Term”) of one (1) year each (each, an “Extension Term”) to (x) the Payment Date occurring one year following the initial Maturity Date, (y) the
Payment Date occurring one year following the expiration of the first Extension Term and (z) the Payment Date occurring one year following the expiration of the second Extension Term (each such date, the “Extended Maturity Date”),
respectively, and, as to each Extension Term, upon satisfaction of the following terms and conditions: 
  
 (i) no Event of Default shall have occurred and be continuing at the time the applicable Extension Term is exercised and on the date that the applicable
Extension Term is commenced; 
  
 (ii) Borrower shall notify Lender
of its irrevocable election to extend the Maturity Date as aforesaid not earlier than one hundred twenty (120) days and no later than sixty (60) days prior to the then applicable Maturity Date (the “Extension Notice”); 
  
 (iii) Borrower shall obtain and deliver to Lender prior to commencement of
such Extension Term, one or more Replacement Interest Rate Cap Agreements, which Replacement Interest Rate Cap Agreements shall be effective commencing on the first day of such Extension Term and shall have a maturity date not earlier than the next
succeeding Extended Maturity Date; 
  
 (iv) in connection with the
exercise of the second and third Extension Term, Borrower shall have paid to Lender the Extension Fee on or before the commencement of such extension term; and 
  

(v) the maturity date of the Mortgage Loan shall have been extended such that the applicable maturity date of the Mortgage Loan shall not occur prior
to the Maturity Date after giving effect to the proposed extension of the term of the Loan. 
  
 In the event that any of the foregoing conditions is not satisfied strictly in accordance with the terms hereof or waived by Lender in writing, the Extension Notice shall be null and void, and the Loan shall mature on
the Maturity Date (without giving effect to the subject Extension Notice). 
  
 (b) All references in this Agreement and in the other Loan Documents to the Maturity Date shall mean the applicable Extended Maturity Date in the event the applicable Extension Term is exercised. 
  
 Section 2.3 Prepayments. 
  
 2.3.1 Voluntary Prepayments 
  
 Except as otherwise provided herein, Borrower shall not voluntarily prepay
the Loan, in whole or in part, at any time during the Lock-Out Period. Thereafter, Borrower may, at its option, prepay the Loan in whole or in part (except as otherwise expressly permitted herein), upon satisfaction of the following conditions:

  
 (a) Borrower shall provide prior written notice to Lender
specifying the date (the “Prepayment Date”) upon which the prepayment is to be made, which notice shall be delivered to Lender not less than ten (10) Business Days prior to such payment. 
  
 (b) Borrower shall pay to Lender, simultaneously with such prepayment, (i) if
the Prepayment Date is not a Payment Date, (A) all interest on the principal balance of the Note then being prepaid which would have accrued through the end of the Interest Period then in effect, calculated at (1) the Applicable 

  

 29 

 
Interest Rate if such prepayment occurs after the LIBOR Determination Date for the Interest Period in which such prepayment occurs or (2) the Assumed Note
Rate if such prepayment occurs before the LIBOR Determination Date for the Interest Period in which such prepayment occurs (the “Interest Shortfall”) and (B) all Breakage Costs, if any, and without duplication of sums paid pursuant
to clause (A) with respect to such prepayment, and (ii) a pro rata portion of the Additional Interest payable on the Maturity Date. 
  
 (c) each prepayment shall be in an aggregate principal amount of $1,000,000.00 or any integral multiple of $100,000.00 in excess thereof. 
  
 In addition to the foregoing, Borrower may at any time (1) prepay a portion
of the Loan or (2) deposit a Letter of Credit, in each case in an amount and to the extent necessary to cure a Triggering Event and achieve the Required Ratio provided Borrower satisfies the conditions 2.3.1(b) hereof. 
  
 Additionally, in the event that Mortgage Borrower sells the Property to an
unrelated third party prior to the end of the Lock-Out Period, Borrower shall have the right to prepay the Loan in full notwithstanding that the Lock-Out Period is then in effect, provided the following conditions are satisfied: (i) no Event of
Default has occurred and is continuing, (ii) Borrower pays all accrued and unpaid interest on the outstanding principal balance of the Loan through the date of prepayment, (iv) Borrower pays the Additional Interest, (v) Borrower pays the Spread
Maintenance Payment, (vi) Borrower pays all Breakage Costs, if any, and (vi) Borrower pays all other sums due under this Agreement, the Note and the other Loan Documents. In the event of a sale of the Mortgaged Property from and after the Lock-Out
Period, the Loan shall be and become due and payable with all of the provisions hereof being applicable thereto except that the Spread Maintenance Payment shall not be due. 
  
 2.3.2 Mandatory Prepayments 
  

(a) On the next occurring Payment Date following the date on which Borrower or Mortgage Borrower actually receives any Net Proceeds, including at any
time during the Lock-Out Period, if and to the extent the Mortgage Borrower is not entitled and is not otherwise permitted by Lender to use such Net Proceeds for restoration, Borrower shall prepay the outstanding principal balance of the Note in an
amount equal to one hundred percent (100%) of such Net Proceeds, subject to the rights of Mortgage Lender under the Mortgage Loan Documents with respect to such Net Proceeds, together with any Interest Shortfall if the Prepayment Date is not a
Payment Date. Any partial prepayment under this Section shall be applied to the last payments of principal due under the Loan, and a portion of the Additional Interest, calculated based on the amount of Net Proceeds being so applied, shall be due
and payable contemporaneously therewith. All Net Proceeds received by Borrower shall be applied to the Loan only. 
  
 (b) Borrower shall have the right at any time to obtain a release of the Collateral if Lender has elected to apply the Net Proceeds of a Casualty or
Condemnation of the Property towards the reduction of the then outstanding principal balance of the Note pursuant to this Section 2.3.2, provided, that, (i) no Event of Default has occurred and shall be continuing under this Agreement, the Note, the
Security Instrument or any of the other Loan Documents, (ii) Borrower pays all accrued and unpaid interest on the amount of principal being prepaid through the date of prepayment, (iii) Borrower pays the Additional Interest, (iv) Borrower pays all
Breakage Costs, if any, without duplications of the amounts provided for the proceeding clause (iii) above, and (v) Borrower pays all other sums then due under this Agreement, the Note, and the other Loan Documents. 
  

 30 

 2.3.3 Prepayments After Default 
  
 If, following an Event of Default, Lender shall accelerate the Debt and Borrower thereafter tender payment of all or any
part of the Debt, or if all or any portion of the Debt is recovered by Lender after such Event of Default, to the extent permitted by Applicable Laws such payment shall include the payment of interest due and payable on such date together with all
other sums due and payable (including, without limitation, the Additional Interest) under the Note, this Agreement and the other Loan Documents and, if the date of such payment is other than a Payment Date, Interest Shortfall and Breakage Costs.

  
 2.3.4 Making of Payments 
  
 Each payment by Borrower hereunder or under the Note shall be made in funds
settled through the New York Clearing House Interbank Payments System or other funds immediately available to Lender by 2:00 p.m., New York City time, on or prior to the date such payment is due, to Lender by deposit to such account as Lender may
designate by written notice to Borrower. Whenever any payment hereunder or under the Note shall be stated to be due on a day which is not a Business Day, such payment shall be made on the first Business Day succeeding such scheduled due date. All
payments made by Borrower hereunder or under the Note or the other Loan Documents shall be made irrespective of, and without any deduction for, any setoff, defense or counterclaims. Borrower shall not be barred from bringing a counterclaim in a
separate action or any compulsory counterclaim. 
  
 Section 2.4
Interest Rate Cap Agreement 
  
 (a) Upon the occurrence of
an Interest Rate Cap Event, Borrower shall obtain, or cause to be obtained, and shall thereafter maintain in effect, an Interest Rate Cap Agreement, which shall be coterminous with the Loan (as it may be extended) and have a notional amount which
shall not at any time be less than the outstanding principal balance of the Loan and the Mortgage Loan and which shall at all times have a strike rate equal to the Strike Rate. The Counterparty shall be obligated under the Interest Rate Cap
Agreement to make monthly payments equal to the excess of 1 month LIBOR over the Strike Rate, calculated on the notional amount with interest accrual periods and payment dates that match those of the Loan. The notional amount of the Interest Rate
Cap Agreement may be reduced from time to time in amounts equal to any prepayment of the principal of the Loan in accordance with Sections 2.3 and 2.5 hereof. 
  

(b) Borrower shall collaterally assign to Lender pursuant to an Assignment of Interest Rate Cap Agreement substantially in the form annexed hereto as
Exhibit C, all of its right, title and interest to receive any and all payments under the Interest Rate Cap Agreement (and any related guarantee, if any) and shall deliver to Lender an executed counterpart of such Interest Rate Cap Agreement
and notify the Counterparty of such collateral assignment (either in such Interest Rate Cap Agreement or by separate instrument). The Counterparty shall agree in writing to make all payments it is required to make under the Interest Rate Cap
Agreement directly to Lender or such other entity or account as directed by Lender. At such time as the Loan is repaid in full, all of Lender’s right, title and interest in the Interest Rate Cap Agreement shall terminate and Lender shall
promptly execute and deliver at Borrower’s sole cost and expense, such documents as may be required to evidence Lender’s release of the Interest Rate Cap Agreement and to notify the Counterparty of such release. 
  
 (c) Borrower shall comply with all of their obligations under the terms and
provisions of the Interest Rate Cap Agreement. All amounts paid by the Counterparty under the Interest Rate Cap Agreement shall be deposited immediately into such account as specified by Lender in writing. Borrower shall take all actions reasonably
requested by Lender to enforce Lender’s rights under the Interest Rate Cap Agreement in the event of a default by the Counterparty and shall not waive, amend or otherwise modify any of their rights thereunder. 
  

 31 

 (d) In the event of any downgrade, withdrawal or qualification of the long-term unsecured debt credit
rating of the Counterparty below “AA-” (or its equivalent) by the Rating Agencies, Borrower shall replace the Interest Rate Cap Agreement with a Replacement Interest Rate Cap Agreement not later than ten (10) Business Days following
receipt of notice from Lender or Servicer of such downgrade, withdrawal or qualification. 
  
 (e) In the event that Borrower fails to purchase and deliver to Lender the Interest Rate Cap Agreement or any Replacement Interest Cap Agreement as and when required hereunder, Lender may purchase such Interest Rate
Cap Agreement and the cost incurred by Lender in purchasing such Interest Rate Cap Agreement shall be paid by Borrower to Lender with interest thereon at the Default Rate from the date such cost was incurred by Lender until such cost is paid by
Borrower to Lender. 
  
 (f) Each Interest Rate Cap Agreement shall
contain the following language or its equivalent: “In the event of any downgrade, withdrawal or qualification of the rating of the Counterparty below “AA-” (or the equivalent) by the Rating Agencies, the Counterparty must, within 30
days, either (x) post collateral on terms acceptable to each Rating Agency or (y) find a replacement Acceptable Counterparty, at the Counterparty’s sole cost and expense, acceptable to each Rating Agency (notwithstanding the foregoing, if the
Counterparty’s rating is downgraded to “A” or lower, only the option described in clause (y) will be acceptable); provided that, notwithstanding such a downgrade, withdrawal or qualification, unless and until the Counterparty
transfers the Interest Rate Cap Agreement to a replacement Acceptable Counterparty pursuant to the foregoing clause (y), the Counterparty will continue to perform its obligations under the Interest Rate Cap Agreement. Failure to satisfy the
foregoing shall constitute an Additional Termination Event as defined by Section 5(b)(v) of the ISDA Master Agreement, with the Counterparty as the Affected Party.” 
  
 (g) In connection with an Interest Rate Cap Agreement, Borrower shall obtain and deliver to Lender an opinion of counsel
from counsel for the Counterparty (upon which Lender and its successors and assigns may rely) which shall provide, in relevant part, that: 
  
 (1) the Counterparty is duly organized, validly existing, and in good standing under the laws of its jurisdiction of incorporation and has
the organizational power and authority to execute and deliver, and to perform its obligations under, the Interest Rate Cap Agreement; 
  
 (2) the execution and delivery of the Interest Rate Cap Agreement by the Counterparty, and any other agreement which the Counterparty has
executed and delivered pursuant thereto, and the performance of its obligations thereunder have been and remain duly authorized by all necessary action and do not contravene any provision of its certificate of incorporation or by-laws (or equivalent
organizational documents) or any law, regulation or contractual restriction binding on or affecting it or its property; 
  
 (3) all consents, authorizations and approvals required for the execution and delivery by the Counterparty of the Interest Rate Cap
Agreement, and any other agreement which the Counterparty has executed and delivered pursuant thereto, and the performance of its obligations thereunder have been obtained and remain in full force and effect, all conditions thereof have been duly
complied with, and no other action by, and no notice to or filing with any governmental authority or regulatory body is required for such execution, delivery or performance; and 
  
 (4) the Interest Rate Cap Agreement, and any other agreement which the Counterparty has executed and
delivered pursuant thereto, has been duly executed and delivered by the Counterparty and constitutes the legal, valid and binding obligation of the Counterparty, enforceable 

  

 32 

 
against the Counterparty in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights
generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 
  

Section 2.5 Release of Property on Payment in Full 
  
 Lender shall, at the expense of Borrower, release the Collateral from the Liens of the Security Instruments upon satisfaction of the Debt, including
without limitation, payment of: (i) the outstanding principal balance of the Note; (ii) all accrued and unpaid interest, including, without limitation, Additional Interest (as reduced by any other prepayments in respect of which Additional Interest
is not required to be paid, if any); (iii) if such payment is not made on a Payment Date, the Interest Shortfall; (iv) Breakage Costs, if any, but without duplication of any payment made pursuant to clause (iii) hereof; and (v) all other sums due
under this Agreement, the Note or the other Loan Documents. 
  

	 	III.	CASH MANAGEMENT 

  
 Without limiting anything contained herein, Borrower shall, and shall cause Mortgage Borrower to, comply with and perform all of Borrower’s and
Mortgage Borrower’s obligations, duties, understandings and covenants under the cash management provisions provided below, subject to Mortgage Borrower’s requirements under the Mortgage Loan Documents. 
  
 Section 3.1 Establishment of Accounts. 
  
 (a) On the Closing Date, Borrower shall, or shall cause Mortgage Borrower to,
(i) establish one or more accounts (individually and collectively, the “Property Account”) with Property Account Bank into which Borrower shall deposit, or cause to be deposited, all Gross Income From Operations, and (ii) execute an
agreement with Mortgage Lender and the Property Account Bank providing for the control of the Property Account substantially in the form of Exhibit A attached herewith (the “Property Account Agreement”) each in accordance with the
Mortgage Loan Documents. 
  
 (b) In addition, Borrower shall cause
Mortgage Borrower to establish accounts with the Lockbox Bank (the “Lockbox Account”), into which shall be deposited all sums on deposit in the Property Account, in accordance with the Lockbox Account Agreement. The Lockbox Bank
shall establish the following Accounts (which may be book entry sub-accounts) into which Gross Income From Operations shall be deposited or allocated, in accordance with the Mortgage Loan Documents: 
  
 (i) An account with Lockbox Bank into which shall deposited
the Monthly Tax Deposit (the “Tax Account”); 
  
 (ii) An account with Lockbox Bank into which shall be deposited the Monthly Insurance Premium Deposit (the “Insurance Premium Account”); 
  
 (iii) An account with Lockbox Bank into which shall be deposited the monthly debt service payment amount
payable under and in accordance with the Mortgage Loan Documents (the “Mortgage Loan Debt Service Account”); 
  
 (iv) An account with Lockbox Bank into which shall be deposited the Replacement Reserve Deposit (the “Replacement Reserve
Account”); 
  
 (v) An account with
Lockbox Bank into which shall be deposited the Required Repair Fund (the “Required Repair Account”); 
  

 33 

 (vi) Intentionally Omitted; 
  
 (vii) An account with Lockbox Bank into which shall be
deposited the Monthly Ground Rent Deposit (the “Ground Rent Account”); 
  
 (viii) An account with Lockbox Bank into which the Approved Expenses shall be deposited (the “Borrower Expense Account”);

  
 (ix) An account with Lockbox Bank into which
the Extraordinary Expenses shall be deposited (the “Extraordinary Expense Account”); 
  
 (x) An account with Lockbox Bank into which shall be deposited the Monthly Mezzanine Debt Service Payment Amount (the “Mezzanine
Loan Account”); and 
  
 (xi) An account
with Lockbox Bank into which Excess Cash Flow shall be deposited (the “Excess Cash Flow Account”). 
  
 All of the foregoing Accounts shall be in the name of the Mortgage Lender and Servicer. If at any time (other than the period immediately following the
Closing Date until the Accounts are established), for any reason or no reason, Mortgage Lender waives the requirement for all or any part of the foregoing cash management system, or the Mortgage Loan is satisfied, Borrower shall immediately be
obligated to establish and maintain a cash management system as provided in this Article III for the benefit of Lender. 
  
 Section 3.2 Deposits into Property Account 
  
 (a) Borrower represents, warrants and covenants that (i) Borrower shall cause Mortgage Borrower to deposit all Gross Income From Operations received from
the Property into the Property Account in accordance with this Agreement and the Mortgage Loan Documents within one (1) Puerto Rico Business Day of receipt, (ii) Borrower shall cause Manager to deposit all Gross Income From Operations received from
the Property collected by Manager, if any, pursuant to the Management Agreement into the Property Account within one (1) Puerto Rico Business Day of receipt, (iii) INTENTIONALLY OMITTED, (iv) INTENTIONALLY OMITTED, (v) Borrower shall cause the
Mortgage Borrower to deposit, or shall cause the Mortgage Borrower to cause the Manager to deposit, all Accounts Receivable for the Property into the Property Account within one (1) Puerto Rico Business Day of receipt, (vi) such Borrower shall cause
to be deposited all accounts receivable for the Property into the Property Account within one (1) Puerto Rico Business Day of receipt, (vii) Borrower shall cause to be sent a notice to all consumer credit/charge card organizations or entities which
sponsor or administer such cards (including the American Express Card, the Visa Card and the Mastercard) as are accepted for payment at the Property, directing them to pay all sums due to the Mortgage Borrower (or to Manager, as the case may be),
directly to the Property Account, (viii) Borrower shall cause the Mortgage Borrower to deposit, or cause Counterparty to deposit, all sums payable to Mortgage Lender under the Interest Rate Cap Agreement with Mortgage Lender; (ix) there shall be no
other accounts maintained by Mortgage Borrower, Borrower or any other Person into which revenues from the ownership and operation of the Property are directly deposited, and (x) none of Mortgage Borrower, Borrower or any other Person shall open any
other such account with respect to the direct deposit of revenue in connection with the Property. Until deposited into the Property Account, any Rents and other revenues from the Property held by Mortgage Borrower or Borrower shall be deemed to be
Collateral or Mortgage Collateral, as the case may be, and shall be held in trust by it for the benefit, and as the property, of Lender or Mortgage Lender as the case may be, and shall not be commingled with any other funds or property of the
Mortgage Borrower or Borrower. 
  

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 (b) Borrower represents, warrants and covenants that, (i) Borrower will continue to cause to be deposited
all Gross Income From Operations received from the Property into the Property Account, in accordance with this Agreement and the Mortgage Loan Documents, (ii) Borrower, or Lender on behalf of Borrower, shall cause Mortgage Borrower to cause Manager
to be instructed to continue to deposit all such Gross Income From Operations and all other sums collected by Manager, if any, pursuant to the Management Agreement into the Property Account and (iii) Borrower shall have no right to withdraw any
funds from the Property Account or Lockbox Account Bank, except as otherwise provided herein and except for the dollar for dollar exchange of currency into different denominations or with Lender’s and Mortgage Lender’s prior written
consent; provided, however, that such accounts may be subject to withdrawal for bank fees, returned checks and credit card chargebacks. 
  
 (c) Borrower warrants and covenants that it shall cause not to be rescinded, withdrawn or changed any notices or instructions required to be sent (or
caused to be sent) by it pursuant to this Section 3.2 without Lender’s prior written consent, which consent shall not be unreasonably withheld, delayed or conditioned. 
  
 Section 3.3 Distributions 
  

(a) At no time that any portion of the Debt remains outstanding shall Borrower permit the purchase or redemption of any interests in
Borrower or Mortgage Borrower (including the Pledged Interests). 
  
 (b) Upon the occurrence and during the continuance of a Triggering Event or an Event of Default, and subject to the provisions of the Mortgage Loan Documents: (i) any and all dividends, including capital dividends,
stock or liquidating dividends, distributions of property, redemptions or other distributions made by Borrower or Mortgage Borrower on or in respect of any interests in Borrower or Mortgage Borrower (including the Pledged Interests), and any and all
cash and other property received in payment of the principal of or in redemption of or in exchange for any such interests (collectively, the “Distributions”), shall become part of the Collateral; (ii) Borrower shall cause Mortgage
Borrower to make Distributions in favor of Borrower of all available revenue derived from the Property; (iii) Borrower expressly agrees that Mortgage Borrower shall be permitted to make Distributions to Borrower only upon the express condition that
Borrower cause Mortgage Borrower to deliver to Lender any and all Distributions which shall be payable or distributable from Mortgage Borrower to Borrower; and (iv) Borrower shall not make any Distributions of any kind to its partners, members or
shareholders prior to indefeasible payment in full of the Debt. Amounts so delivered to Lender shall be paid or distributed by wire transfer (pursuant to wiring instructions to be furnished by Lender) for deposit at Lender’s direction to be
held and applied in reduction of the Debt. 
  
 (c) If any Distributions not permitted hereunder to have been made shall be received by Borrower or party other than Lender, Borrower shall hold, or shall cause the same to be held, in trust for the benefit of Lender and to forthwith be
delivered for deposit and application in reduction of the Debt. Any and all revenue derived from the Property paid directly by tenants, subtenants or occupants of the Property to Borrower shall be: (i) held and applied in accordance with the terms
and provisions of the Mortgage Loan Documents and the Loan Documents; and (ii) deemed to constitute Distributions to Borrower from Mortgage Borrower. 
  
 (d) Borrower shall be permitted to make and retain Distributions prior to the occurrence or after the cure of a Triggering Event or an
Event of Default, provided that the receipt of such Distributions was otherwise not prohibited under the Loan Documents. 
  

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 Section 3.4 Eligible Accounts 
  
 Borrower shall cause Mortgage Borrower to maintain each Account as an Eligible Account. 
  
 Section 3.5 Permitted Investments. 
  
 Sums on deposit in any Account described in Section 3.1(b)(i) through and
including (ix) (other than the Property Account or Lockbox Account) may be invested in Permitted Investments provided (i) such investments are then regularly offered by Property Account Bank or Lockbox Bank, as the case may be, for accounts of this
size, category and type, (ii) such investments are permitted by applicable federal, State, Commonwealth of Puerto Rico and local rules, regulations and laws, (iii) the maturity date of the Permitted Investment is not later than the date on which
sums in the applicable Account are required for payment of an obligation for which such Account was created, and (iv) no Event of Default shall have occurred and be continuing. Borrower shall have the right to cause Mortgage Borrower to direct
Property Account Bank or Lockbox Bank, as the case may be, to invest sums on deposit in such Accounts (other than the Property Account and the Lockbox Account) in Permitted Investments. All income earned from Permitted Investments shall be the
property of Mortgage Borrower. Borrower hereby irrevocably authorizes and directs Property Account Bank or Lockbox Bank, as the case may be, to hold any income earned from Permitted Investments as part of the Accounts. Borrower shall be responsible
for payment of any federal, State or local income or other tax applicable to income earned from Permitted Investments. No other investments of the sums on deposit in the Accounts shall be permitted except as set forth in this Section 3.5. Lender
shall not be liable for any loss sustained on the investment of any funds constituting the Reserve Funds or of any funds deposited in the related Accounts. 
  
 Section 3.6 Triggering Event. 
  
 “Triggering Event” shall mean the earliest of (i) the occurrence of an Event of Default, or (ii) the date on which the Debt Service
Coverage Ratio for the twelve (12) full calendar months immediately preceding the date of calculation (calculated assuming with respect to the Mortgage Loan an interest rate constant equal to the Contract Rate, and with respect to the Loan an
interest rate constant equal to the then Applicable Interest Rate then applicable) is less than the Required Ratio. The Triggering Event shall be deemed cured (unless the cause of such Triggering Event was the occurrence of an Event of Default) on
the first monthly test date on which the Debt Service Coverage Ratio (assuming with respect to the Mortgage Loan an interest rate constant equal to the Cure Contract Rate, and with respect to the Loan an interest rate equal to the Applicable
Interest Rate then applicable plus 25 basis points) for the twelve (12) full calendar months for which Net Operating Income has been calculated based on the financial statements required to be delivered under Section 5.1.10 immediately preceding the
date of calculation is equal to or greater than the Required Ratio and in connection with such cure Borrower shall no longer be required to deposit Excess Cash Flow into the Excess Cash Flow Account. The Required Ratio may be obtained by, (i)
prepaying the Loan (or a portion thereof) subject to the terms of this Agreement, the Note or any of the other Loan Documents (the amount of such paydown, the “Paydown Amount”), (ii) posting cash collateral or a Letter of Credit in
the Paydown Amount) or (iii) improved performance of the Property (a “Performance Cure”). In the event Borrower has cured the Triggering Event by posting cash collateral or a Letter of Credit in the Paydown Amount and the
performance of the Property improve so that the Required Ratio is maintained without the cash collateral or Letter of Credit, as applicable, Lender shall promptly return the applicable cash collateral or Letter of Credit to Borrower upon
Borrower’s written request therefor and, subject to Section 3.11 hereof, any sums in the Excess Cash Flow Account shall be distributed to Borrower. Borrower’s right to cure the Triggering Event shall be limited to two (2) times in each
calendar year. In the event that (i) Borrower posts cash collateral or a Letter of Credit in the Paydown Amount and a subsequent Performance Cure occurs and (ii) Borrower does not request the return of the cash collateral or Letter of Credit as
permitted hereunder, the occurrence of the Performance Cure (and the continued posting of the applicable cash collateral or Letter of Credit) shall not constitute a second cure for the purpose of the immediately preceding sentence. After the
occurrence and during the 

  

 36 

 
continuance of an Event of Default, Lender shall be permitted to draw on any cash collateral or Letter of Credit deposited pursuant to this paragraph and
apply the sums towards the Debt in whatever order and priority Lender desires. 
  
 Section 3.7 Transfer To and Disbursements from the Lockbox Account 
  
 On each Puerto Rico Business Day that is also a Business Day after the Closing Date, Property Account Bank shall transfer, or Borrower shall transfer or
cause to be transferred, all available funds on deposit in the Property Account to the Lockbox Account in accordance with the Mortgage Loan Documents. 
  
 (a) Lockbox Bank shall withdraw all available funds on deposit in the Lockbox Account on each Business Day of each month, and 
  
 (b) Lockbox Bank shall disburse the funds in the Lockbox Account in the
following order of priority: 
  
 (i) First, funds
sufficient to fund the Monthly Ground Rent Deposit (including, without limitation, for all Rent and any and all other charges due and payable under the Ground Lease); 
  
 (ii) Second, funds sufficient to pay the Monthly Tax Deposit under and as defined in the Mortgage Loan
Documents shall be deposited in Tax Account; 
  
 (iii) Third, funds sufficient to pay the Monthly Insurance Premium Deposit, if any, under and as defined in the Mortgage Loan Documents shall be deposited in the Insurance Premium Account; 
  
 (iv) Fourth, funds sufficient to pay the monthly debt
service payment amount payable under and in accordance with the Mortgage Loan Documents, shall be deposited into the Mortgage Loan Debt Service Account to be applied (1) first, to the payment of accrued and unpaid interest computed at the applicable
interest rate under and as defined in the Mortgage Loan Documents; and (2) second to the monthly scheduled amortization payment under and as defined in the Mortgage Loan Documents, in the reduction of the principal sum of the loan evidenced by the
Mortgage Loan Documents; 
  
 (v) Fifth, funds
sufficient to pay any required Replacement Reserve Deposit under and as defined in the Mortgage Loan Documents shall be deposited in the Replacement Reserve Account; 
  
 (vi) Sixth, funds sufficient to pay any interest accruing at the Default Rate under and as defined in the
Mortgage Loan Documents, and late payment charges, if any, shall be deposited in the Mortgage Loan Debt Service Account; 
  
 (vii) Seventh, to the payment of Lockbox Bank for fees and expenses incurred in connection with the Mortgage Loan Documents and the
accounts established thereunder; 
  
 (viii)
Eighth, funds sufficient to pay all costs and expenses, calculated on a cash basis, required to be paid during such month by or on behalf of Mortgage Borrower in connection with the ownership and operation of the Property in accordance with the
Approved Annual Budget, (“Approved Expenses”) shall be deposited in the Borrower Expense Account after deposits for 

  

 37 

 
items (i) through (viii) above have been made (provided deposits to the Borrower Expense Account shall not include amounts which have previously been paid
pursuant to items (i) through (viii) above); 
  
 (ix) Ninth, funds sufficient to pay any Extraordinary Expenses for such month which have been approved by Mortgage Lender and Lender (and that have not been previously paid pursuant to items (i) through (ix) above) shall be deposited in the
Extraordinary Expense Account after deposits for items (i) through (ix) above have been made; 
  
 (x) Tenth, (A) provided no Event of Default under and as defined in the Mortgage Loan Agreement has occurred and is continuing, funds
sufficient to pay (1) the Monthly Debt Service Payment Amount and (2) any Net Liquidation Proceeds After Debt Service shall be deposited into the Mezzanine Loan Account to be applied in accordance with this Agreement; and (B) following a Triggering
Event under and as defined in the Mortgage Loan Agreement, and for so long as such Triggering Event exists, all amounts remaining in the Lockbox Account after deposits for items (i) through (x) (the “Excess Cash Flow”) shall be
deposited into the Excess Cash Flow Account and subject to Section 3.11 hereof, used by Mortgage Lender to pay down the outstanding principal amount of the Mortgage Loan; and 
  
 (xi) Last, provided no Triggering Event hereunder has occurred and is continuing, all amounts remaining in
the Lockbox Account and the Excess Cash Flow Account, if any, after deposits for items (i) through (xi) for the current month and all prior months shall be disbursed (A) upon notice by Lender to Mortgage Lender that either a Triggering Event or an
Event of Default has occurred and is continuing under the Loan Documents, to an account designated by Lender or (B) to Borrower in accordance with Borrower’s written instructions. 
  
 Section 3.8 Borrower’s Obligation Not Affected 
  
 The sufficiency or insufficiency of funds on deposit in the Accounts is in no way related to and shall have no effect on
Borrower’s obligations to make any payments, as and when due pursuant to this Agreement and the other Loan Documents (except to the extent that sums sufficient to pay such amounts have been deposited in the Lockbox Account or are otherwise in
escrow with Lender or Mortgage Lender pursuant to the terms of this Agreement), and such obligations shall be separate and independent, and not conditioned on any event or circumstance whatsoever. 
  
 Section 3.9 INTENTIONALLY OMITTED 
  
 Section 3.10 Lender Reliance. 
  
 Lender shall have no duty to confirm, inquire or determine whether an event
of default has occurred under the Mortgage Loan. Lender may rely on any notice it believes in good faith to be genuine and given by Mortgage Lender. 
  
 Section 3.11 Application of Funds in the Excess Cash Flow Account. 
  
 As more particularly set forth in the Mortgage Loan Agreement, provided no Event of Default thereunder has occurred and is
continuing, on each Payment Date all funds in the Excess Cash Flow Account shall be applied pro-rata by Mortgage Lender to pay down the outstanding principal balance of the Loan and the Mortgage Loan. However, to the extent Excess Cash Flow is
applied to pay the Loan (or a portion thereof), a portion of such payment of Excess Cash Flow in the amount of 3.20339% of such payment shall be paid to Lender in respect of the Additional Interest and only the balance of such 

  

 38 

 
payment shall be applied in reduction of the outstanding principal balance of the Loan. During the continuance of an Event of Default under the Mortgage Loan
Agreement, all Excess Cash Flow shall be applied by Mortgage Lender to pay down the Mortgage Loan. In certain circumstances, as more particularly set forth in the Mortgage Loan Agreement, Mortgage Borrower may have the right to direct Mortgage
Lender to use the funds in the Excess Cash Flow Account to either (i) pay down the Loan and the Mortgage Loan pro rata or (ii) hold the funds in the Excess Cash Flow Account as additional collateral for the Mortgage Loan. 
  

	 	IV.	REPRESENTATIONS AND WARRANTIES 

  
 Section 4.1 Borrower Representations 
  
 Borrower represents and warrants as of the date hereof that: 
  
 4.1.1 Organization 
  
 Borrower is duly organized and is validly existing and in good standing in the jurisdiction in which it is organized, with requisite power and authority
to own its property and to transact the businesses in which it is now engaged. Borrower is duly qualified to do business and is in good standing in each jurisdiction where it is required to be so qualified in connection with its property, businesses
and operations. Borrower possesses all rights, licenses, permits and authorizations, governmental or otherwise, necessary to entitle it to own its property and to transact the businesses in which it is now engaged. Mortgage Borrower is duly
organized and is validly existing and in good standing in the jurisdiction in which it is organized, with requisite power and authority to own its Property and to transact the businesses in which it is now engaged. Mortgage Borrower is duly
qualified to do business and is in good standing in each jurisdiction where it is required to be so qualified in connection with its Property, businesses and operations. Mortgage Borrower possesses all rights, licenses, permits and authorizations,
governmental or otherwise, necessary to entitle it to own its Property and to transact the businesses in which it is now engaged. Attached hereto as Schedule IV are true, correct and complete organizational charts of Borrower and Mortgage Borrower.

  
 4.1.2 Proceedings. 
  
 Borrower has taken all necessary action to authorize the execution, delivery
and performance of this Agreement and the other Loan Documents to which it is a party. This Agreement and such other Loan Documents have been duly executed and delivered by or on behalf of Borrower and constitute legal, valid and binding obligations
of Borrower enforceable against Borrower in accordance with their respective terms, subject only to applicable bankruptcy, insolvency and similar laws affecting rights of creditors generally, and subject, as to enforceability, to general principles
of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 
  
 4.1.3 No Conflicts 
  
 The
execution, delivery and performance of this Agreement and the other Loan Documents by Borrower will not conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition
of any Lien, charge or encumbrance (other than pursuant to the Loan Documents) upon any of the property or assets of Borrower or Mortgage Borrower pursuant to the terms of any indenture, mortgage, deed of trust, loan agreement, partnership
agreement, management agreement, franchise agreements or other material agreement or instrument to which Borrower or Mortgage Borrower is a party or by which any of Borrower’s or Mortgage Borrower’s property or assets is subject, nor will
such action result in any violation of the provisions of any statute or 

  

 39 

 
any order, rule or regulation of any court or governmental agency or body having jurisdiction over Borrower or Mortgage Borrower or any of Borrower’s or
Mortgage Borrower’s property or assets, and any consent, approval, authorization, order, registration or qualification of or with any court or any such regulatory authority or other governmental agency or body required for the execution,
delivery and performance by Borrower of this Agreement or any other Loan Documents has been obtained and is in full force and effect. No contract to which Borrower or any of its Principals is a party contains any provision which provides that a
change of ownership or control of Borrower or Principals resulting from the exercise of Lender’s rights under the Loan Documents constitutes an unauthorized assignment thereof or gives the other party a right of termination or other right or
remedy. Except to the extent obtained and delivered to Lender in writing prior to the date hereof, no registration, qualification, designation, declaration or filing with, any Person or any Governmental Authority (other than the filing of financing
statements and continuation statements) is or will be necessary in connection with the execution and delivery of this Agreement or any other Loan Documents by Borrower or any of Borrower’s Principals, consummation of the transactions herein or
therein contemplated (including, without limitation, Borrower’s obtaining the Loan, the Guarantors’ guaranty of the certain Obligations of Borrower and the Borrower’s granting security for their Obligations under the Loan Documents),
performance of or compliance by Borrower and any of Borrower’s Principals that is a party thereto with the terms and conditions hereof or thereof or the legality, validity and enforceability hereof or thereof. 
  
 4.1.4 Litigation 
  
 Except as disclosed on Schedule XII attached hereto, there are no
actions, suits or proceedings at law or in equity by or before any Governmental Authority or other agency now pending or, to the best of Borrower’s knowledge, threatened against or affecting Borrower, Mortgage Borrower, the Collateral or the
Property, which actions, suits or proceedings, if determined against Borrower, Mortgage Borrower, the Collateral or the Property, could reasonably be expected to materially adversely affect the condition (financial or otherwise) or business of
Borrower or Mortgage Borrower or the condition or ownership of the Collateral or the Property. 
  
 4.1.5 Agreements 
  
 Borrower is not a party to any agreement or instrument or subject to any restriction which could reasonably be expected to materially and adversely affect Borrower, Mortgage Borrower or the Property, or Borrower’s or Mortgage
Borrower’s business, the Collateral, property or assets, operations or condition, financial or otherwise. Except as disclosed on Schedule XIII attached hereto, neither Borrower nor Mortgage Borrower is in default in any material respect
in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement or instrument to which it is a party or by which Borrower, Mortgage Borrower, the Collateral and the Property are bound which
could reasonably be expected to materially and adversely affect Borrower, Mortgage Borrower, the Collateral or the Property. 
  
 4.1.6 Solvency 
  
 Borrower has not entered into the transaction or executed the Note, this Agreement or any other Loan Documents with the actual intent to hinder, delay or
defraud any creditor and Borrower has received reasonably equivalent value in exchange for its obligations under such Loan Documents. Giving effect to the Loan, the fair saleable value of Borrower’s assets exceeds and will, immediately
following the making of the Loan, exceed Borrower’s total liabilities, including, without limitation, subordinated, unliquidated, disputed and contingent liabilities. The fair saleable value of Borrower’s assets is and will, immediately
following the making of the Loan, be greater than Borrower’s probable liabilities, including the maximum amount of its contingent liabilities on its debts as such debts become absolute and matured. Borrower’s 

  

 40 

 
assets do not and, immediately following the making of the Loan will not, constitute unreasonably small capital to carry out their respective businesses as
conducted or as proposed to be conducted. Borrower does not intend to incur debt and liabilities (including contingent liabilities and other commitments) beyond their respective abilities to pay such debt and liabilities as they mature (taking into
account the timing and amounts of cash to be received by Borrower and the amounts to be payable on or in respect of obligations of Borrower). Except as expressly disclosed by Borrower to Lender in writing, no petition in bankruptcy has been filed
against Borrower or any constituent Person in the last seven (7) years, and neither Borrower nor any constituent Person in the last seven (7) years has ever made an assignment for the benefit of creditors or taken advantage of any insolvency act for
the benefit of debtors. Neither Borrower nor any of its constituent Persons is contemplating either the filing of a petition by it under any State or federal bankruptcy or insolvency laws or the liquidation of all or a major portion of
Borrower’s assets or property, and Borrower has no knowledge of any Person contemplating the filing of any such petition against it or such constituent Persons. 
  
 Mortgage Borrower has not entered into the transaction or executed the Mortgage Loan Documents with the actual intent to
hinder, delay or defraud any creditor and Mortgage Borrower received reasonably equivalent value in exchange for its obligations under the Mortgage Loan Documents. 
  
 Giving effect to the Mortgage Loan, the fair saleable value of Mortgage Borrower’s assets exceeds and will, immediately
following the making of the Mortgage Loan, exceed Mortgage Borrower’s total liabilities, including, without limitation, subordinated, unliquidated, disputed and contingent liabilities. The fair saleable value of Mortgage Borrower’s assets
is and will, immediately following the making of the Mortgage Loan, be greater than Mortgage Borrower’s probable liabilities, including the maximum amount of its contingent liabilities on its debts as such debts become absolute and matured.
Mortgage Borrower’s assets do not and, immediately following the making of the Mortgage Loan will not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted. 
  
 Mortgage Borrower does not intend to incur debt and liabilities (including
contingent liabilities and other commitments) beyond its ability to pay such debt and liabilities as they mature (taking into account the timing and amounts of cash to be received by Mortgage Borrower and the amounts to be payable on or in respect
of obligations of Mortgage Borrower). No petition in bankruptcy has been filed against Mortgage Borrower or any constituent Person in the last seven (7) years, and neither Mortgage nor Borrower nor any constituent Person in the last seven (7) years
has ever made an assignment for the benefit of creditors or taken advantage of any insolvency act for the benefit of debtors. Neither Mortgage Borrower nor any of their constituent Persons are contemplating either the filing of a petition by it
under any State or federal bankruptcy or insolvency laws or the liquidation of all or a major portion of Mortgage Borrower’s assets or property, and Mortgage Borrower has no knowledge of any Person contemplating the filing of any such petition
against it or such constituent Persons. 
  

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 4.1.7 Full and Accurate Disclosure 
  
 No statement of fact made by Borrower in this Agreement or in any of the other Loan Documents contains any untrue statement
of a material fact or omits to state any material fact necessary to make statements contained herein or therein not misleading. There is no material fact presently known to Borrower which has not been disclosed to Lender which materially adversely
affects, or could reasonably be expected to materially adversely affect, the Collateral, the business, operations or condition (financial or otherwise) of Borrower, or Guarantor or Indemnitor or the business of Mortgage Borrower or the Property.

  
 4.1.8 No Plan Assets; No Employees 
  
 Neither Borrower nor Mortgage Borrower is an “employee benefit
plan,” as defined in Section 3(3) of ERISA, subject to Title I of ERISA, and none of the assets of Borrower constitutes or will constitute “plan assets” of one or more such plans within the meaning of 29 C.F.R Section 2510.3-101. In
addition, (a) neither Borrower nor Mortgage Borrower is a “governmental plan” within the meaning of Section 3(32) of ERISA and (b) transactions by or with Borrower or Mortgage Borrower are not subject to State statutes regulating
investment of, and fiduciary obligations with respect to, governmental plans similar to the provisions of Section 406 of ERISA or Section 4975 of the Code currently in effect, which prohibit or otherwise restrict the transactions contemplated by
this Agreement. Borrower does not have any employees. 
  
 4.1.9
Compliance 
  
 Except as expressly disclosed in the
Physical Condition Reports, Environmental Reports or Surveys, Mortgage Borrower and the Property and the use thereof comply in all material respects with all applicable Legal Requirements, including, without limitation, all Environmental Laws,
building and zoning ordinances and codes. Neither Borrower nor Mortgage Borrower is, in any material respect, in default or violation of any order, writ, injunction, decree or demand of any Governmental Authority. There has not been committed by
Borrower or, to the best of Borrower’s knowledge, Mortgage Borrower or any other Person in occupancy of or involved with the operation or use of the Property any act or omission affording the federal government or any other Governmental
Authority the right of forfeiture as against the Property or any part thereof or any monies paid in performance of any of Borrower’s obligations under any of the Loan Documents. 
  
 4.1.10 Financial Information 
  

All financial data, including, without limitation, the statements of cash flow and income and operating expense, that have been delivered to Lender in
respect of Borrower and the Property (i) are true, complete and correct in all material respects, (ii) accurately represent the financial condition of Borrower and the Property, as applicable, as of the date of such reports in all material respects,
and (iii) have been prepared in accordance with GAAP throughout the periods covered, except as disclosed therein. Except for Permitted Encumbrances, neither Borrower nor Mortgage Borrower has any contingent liabilities, liabilities for taxes,
unusual forward or long term commitments or unrealized or anticipated losses from any unfavorable commitments that are known to Borrower and reasonably likely to have a materially adverse effect on the Collateral or the Property or the operation
thereof as hotels except as referred to or reflected in said financial statements. Since the date of such financial statements, there has been no materially adverse change in the financial condition, operations or business of Mortgage Borrower and
Borrower from that set forth in said financial statements, except as previously disclosed in writing to Lender and approved by Lender in writing. 
  

 42 

 4.1.11 Federal Reserve Regulations 
  
 No part of the proceeds of the Loan will be used for the purpose of purchasing or acquiring any “margin stock”
within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other purpose which would be inconsistent with such Regulation U or any other Regulations of such Board of Governors, or for any purposes
prohibited by Legal Requirements or by the terms and conditions of this Agreement or the other Loan Documents. 
  
 4.1.12 Not a Foreign Person 
  
 No Borrower is a “foreign person” within the meaning of §1445(f)(3) of the Code. 
  
 4.1.13 No Prior Assignment 
  
 There are no prior assignments of the Collateral (or any portion thereof)
which are presently outstanding. 
  
 4.1.14 Enforceability

  
 This Agreement and such other Loan Documents have been duly
executed and delivered by or on behalf of Borrower and constitute legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms, subject only to applicable bankruptcy, insolvency and similar
laws affecting rights of creditors generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). The Loan Documents are not subject to any right of
rescission, set-off, counterclaim or defense by Borrower, including the defense of usury, and Borrower has not asserted any right of rescission, set-off, counterclaim or defense with respect thereto. Without limiting the foregoing, each of the Loan
Documents which purports to grant or assign to Lender a Lien or security interest in any Collateral creates a valid, enforceable Lien on the Collateral in favor of Lender, subject only to Permitted Encumbrances. 
  
 4.1.15 Perfection 
  
 Upon the filing of the Financing Statements in the Office of the Secretary of
State of the State of Delaware and delivery of the original stock certificates evidencing the Pledged Interests, Lender will have a perfected security interest in each item of Collateral, and the recordings, filings and actions set forth on Exhibit
B are all the actions necessary in order to establish, protect and perfect the interest of the Lender in the Collateral. 
  
 4.1.16 Property 
  
 (a) Condemnation/Casualty. Except as disclosed on Schedule XV attached hereto, no Condemnation or other similar proceeding
has been commenced or, to the best of Borrower’s knowledge, is threatened or contemplated with respect to all or any material portion of the Property or for the relocation of roadways providing access to the Property, which relocation would
reasonably be expected to have a material adverse effect. Except as disclosed on Schedule XVI attached hereto, no Property has been materially damaged as a result of any fire, explosion, accident, flood or other casualty and not repaired as
of the date hereof. 
  
 (b) Utilities and
Public Access. Except as set forth on Schedule XVII attached hereto, the Property has rights of access to public ways and is served by public water, sewer, sanitary sewer and storm drain facilities adequate to service the Property for its
respective intended uses. All 

  

 43 

 
public utilities necessary for the full use and enjoyment of the Property are located either in the public right-of-way abutting the Property (which are
connected so as to serve the Property without passing over other property) or in recorded easements serving the Property and such easements are set forth in the respective Title Insurance Policy. All roads necessary for the use of the Property for
its current respective purposes have been completed, are physically open and dedicated to public use and have been accepted by all Governmental Authorities or are located in recorded easements serving the Property and such easements are set forth in
and insured by the Title Insurance Policy issued to Mortgage Lender. 
  
 (c) Separate Lots. The Property is comprised of one (1) or more parcels which constitute a separate tax lot or lots and does not constitute a portion of any other tax lot not a part of the Property. 

 
 (d) Assessments. Except as disclosed on
Schedule XI or in the Title Insurance Policy, there are no material pending or, to the best of Borrower’s knowledge, proposed special or other assessments for public improvements or otherwise affecting the Property, nor, to the best of
Borrower’s knowledge, are there any contemplated improvements to the Property that may result in such special or other assessments. 
  
 (e) Insurance. Borrower has obtained (and Borrower has delivered to Lender) certified copies (or other evidence reasonably
acceptable to Lender) of all insurance policies reflecting the insurance coverages, amounts and other requirements set forth in this Agreement and the Mortgage Loan Documents. Except as disclosed on Schedule XVIII attached hereto, no claims
have been made under any such policy, and no Person, including Mortgage Borrower has done, by act or omission, anything which would impair the coverage of any such policy. 
  
 (f) Zoning; Use of Property. The Property is used exclusively for hotel purposes and other
appurtenant and related uses including, without limitation, as casino. Except as expressly set forth in a Physical Condition Report, Title Insurance Policy or Survey, the Property (including its use exclusively for hotel purposes and other
appurtenant and related uses) is in compliance in all material respects with, and the Property has been constructed, completed, maintained and operated in compliance in all material respects with, Applicable Law. Except as expressly set forth in a
Physical Condition Report, Title Insurance Policy or Survey, each Property currently complies in all material respects with all applicable zoning requirements and does not rely on any pre-existing use or rights. 
  
 (g) Use Permit; Licenses. Except as expressly
set forth in a Physical Condition Report, Title Insurance Policy or Survey, all material certifications, permits, licenses and approvals, including without limitation, certificates of completion and occupancy permits and any applicable liquor,
hospitality and gaming licenses required for the legal use, occupancy and operation of the Property as a hotel and casino (collectively, the “Licenses”), have been obtained and are in full force and effect unless the failure to
obtain same would not reasonably be expected to have a material adverse affect on Borrower, Mortgage Borrower or the Property. Except as expressly set forth in the Physical Condition Report, Mortgage Borrower has paid in full all fees and other
charges related to the Licenses which are due and payable as of the date hereof unless the failure to pay such fees or other charges would not reasonably be expected to have a material adverse effect on Borrower, Mortgage Borrower or the Property.
Borrower shall keep and maintain or cause to be kept and maintained all Licenses necessary for the operation of the Property as a hotel and casino and cause to be paid any fees in connection therewith on or prior to the date they are due, unless the
failure to pay such fees would not reasonably be expected to have a material adverse effect on Borrower, Mortgage Borrower, the Collateral or the Property. Except as expressly set forth in a Physical Condition Report, Title Insurance Policy or
Survey, the use being made of the Property is in conformity with the use permit issued for the Property. 
  

 44 

 (h) Flood Zone. Except as shown on the Survey for the Property, none of the
Improvements on the Property is located in an area as identified by the Federal Emergency Management Agency as an area having special flood hazards and, if so located, the flood insurance required pursuant to Section 6.1(a)(vii) is in full force and
effect with respect to the Property. 
  
 (i)
Physical Condition. Except as expressly set forth in a Physical Condition Report to the best of Borrower’s knowledge: The Property, including, without limitation, all buildings, improvements, parking facilities, sidewalks, storm drainage
systems, roofs, plumbing systems, HVAC systems, fire protection systems, electrical systems, equipment, elevators, exterior sidings and doors, landscaping, irrigation systems and all structural components, are in good condition, order and repair in
all material respects and there exists no structural or other material defects or damages in the Property, whether latent or otherwise, that would have a material adverse effect on the Property or the operation of the Property, and Mortgage Borrower
has not received notice from any insurance company or bonding company of any defects or inadequacies in the Property, or any part thereof, which would adversely affect the insurability of the same or cause the imposition of extraordinary premiums or
charges thereon or of any termination or threatened termination of any policy of insurance or bond. The Property is free from material damage by fire or other casualty. All liquid and solid waste disposal, septic and sewer systems located on the
Property are in a good and safe condition and repair and in compliance with all Legal Requirements. 
  
 (j) Boundaries. Except as expressly set forth in a Physical Condition Report or on the Survey: all of the Improvements which were
included in determining the appraised value of the Property lie wholly within the boundaries and building restriction lines of the Property, and no improvements on adjoining property encroach upon the Property, and no easements or other encumbrances
upon the Property encroach upon any of the Improvements, so as to materially affect the value or marketability of the Property except those which are insured against by the Title Insurance Policy. 
  
 (k) Leases. No Person has any possessory interest in
the Property or right to occupy the same except under and pursuant to the provisions of the Leases. The current Leases are in full force and effect and, except as disclosed on Schedule XIX attached hereto and to the best of Borrower’s
knowledge, there are no material defaults thereunder by any party and there are no conditions that, with the passage of time or the giving of notice, or both, would constitute material defaults thereunder. Except for security deposits required under
the respective Leases, and except as shown on Schedule XIX hereof, no Rent has been paid more than one (1) month in advance of its due date. Except as shown on Schedule XIX hereof, there are no offsets or defenses to the payment of any
portion of the Rents. Except as set forth on Schedule XIX attached hereto, all work to be performed by Mortgage Borrower under a Lease has been performed as required and has been accepted by the applicable tenant, and any payments, free rent,
partial rent, rebate of rent or other payments, credits, allowances or abatements required to be given by Mortgage Borrower to any tenant has already been received by such tenant. There is no prior sale, transfer or assignment, hypothecation or
pledge of any Lease or of the Rents received therein which is presently outstanding. Except as set forth on Schedule XIV attached hereto, no tenant under any Lease has assigned its Lease or sublet all or any portion of the premises demised
thereby, no such tenant holds its leased premises under assignment or sublease, nor does anyone except such tenant and its employees occupy such leased premises. No tenant under any Lease has a right or option pursuant to such Lease or otherwise to
purchase all or any part of the leased premises or the building of which the leased premises are a part. Except as otherwise disclosed in a tenant estoppel certificate delivered to Lender in connection with the Loan or on Schedule XIX hereof,
no tenant under any Lease has any right or option for additional space in the Improvements. To the best of Borrower’s knowledge, no Hazardous Materials have been disposed, stored or treated by any tenant under any Lease on or about the leased
premises in violation of Environmental Laws nor does Borrower have any knowledge of any tenant’s intention to use 

  

 45 

 
its leased premises for any activity which, directly or indirectly, involves the use, generation, treatment, storage, disposal or transportation of any
Hazardous Materials in violation of Environmental Laws. 
  
 (l) Survey. A Survey for the Property delivered to Lender in connection with this Agreement does not fail to reflect any material matter known to Borrower affecting the Property or the title thereto.

  
 (m) Inventory. Mortgage Borrower is
the owner of all of the equipment and assets at the Property (other than equipment leased as permitted hereunder), respectively, and Borrower shall cause Mortgage Borrower not to lease any equipment or assets other than as permitted hereunder.

  
 (n) Management Agreement. Borrower has
delivered or has caused to be delivered to Lender a true, complete and correct copy of the property management agreement covering the Property as of the date hereof. The property management agreement is in full force and effect and there is no
material default thereunder by any party thereto and no event has occurred that, with the passage of time and/or the giving of notice would constitute a material default thereunder. 
  
 (o) Filing and Recording Taxes. All mortgage, mortgage recording, stamp, intangible or other similar
tax required to be paid by any Person under applicable Legal Requirements currently in effect in connection with the execution, delivery, recordation, filing, registration, perfection or enforcement of any of the Loan Documents and Mortgage Loan
Documents, including, without limitation, the Security Instruments, have been paid. 
  
 (p) No Violations. Except as otherwise disclosed in writing to Lender, neither Borrower nor Mortgage Borrower has received written
notice of any material violations of any Applicable Law in respect of the Property which has not been remedied. 
  
 (q) Parking. The Property has a sufficient number of parking spaces to comply with Applicable Law and with all obligations under
applicable leases and agreements affecting the Property. 
  
 4.1.17 Insolvency Opinion 
  
 All of the
assumptions made in the Insolvency Opinion, including, but not limited to, any exhibits attached thereto, are true and correct in all material respects and any assumptions made in any subsequent non-consolidation opinion required to be delivered in
connection with the Loan Documents (an “Additional Insolvency Opinion”), including, but not limited to, any exhibits attached thereto, will have been and shall be true and correct in all material respects. 
  
 4.1.18 Illegal Activity 
  
 No portion of any Collateral or the Property has been or will be purchased
with proceeds of any illegal activity and to the best of Borrower’s knowledge, there are no illegal activities or activities relating to any controlled substances at the Property. 
  
 4.1.19 No Change in Facts or Circumstances; Disclosure 
  
 All information submitted by Borrower to Lender and in all financial statements, rent rolls, reports, certificates and other
documents submitted in connection with the Loan or in satisfaction of the terms thereof and all statements of fact made by Borrower in this Agreement or in any other Loan Document, are accurate, complete and correct in all material respects. There
has been no material adverse change in any condition, fact, circumstance or event that would make any such information inaccurate, 

  

 46 

 
incomplete or otherwise misleading in any material respect or that otherwise materially and adversely affects or could reasonably be expected to materially
and adversely affect the use, operation or value of the Collateral, the Property or the business operations or the financial condition of Borrower or Mortgage Borrower. Borrower has disclosed to Lender all material facts and have not failed to
disclose any material fact that could cause any representation or warranty made herein to be materially misleading. 
  
 4.1.20 Investment Company Act 
  
 Neither Borrower nor Mortgage Borrower is (a) an “investment company” or a company “controlled” by an “investment company,”
within the meaning of the Investment Company Act of 1940, as amended; (b) a “holding company” or a “subsidiary company” of a “holding company” or an “affiliate” of either a “holding company” or a
“subsidiary company” within the meaning of the Public Utility Holding Company Act of 1935, as amended; or (c) subject to any other federal or State law or regulation which purports to restrict or regulate its ability to borrow money.

  
 4.1.21 Principal Place of Business 
  
 Borrower’s and Mortgage Borrower’s principal place of business as
of the date hereof is the address set forth on Schedule XX attached hereto. None of Mortgage Borrower, Borrower or Pledgor conducts business under any assumed names or trade names, or has conducted business under any other names, or any
assumed names or trade names, at any time prior to the date hereof other than Wyndham Condado Plaza Hotel & Casino. With respect to Mortgage Borrower, Borrower and Pledgor, the “chief executive offices” (as such term is used in Section
9-307 of the Uniform Commercial Code) of such party is located in the State of Texas. 
  
 4.1.22 Single Purpose Entity 
  
 Except as otherwise permitted pursuant to the terms of the Loan Documents, Borrower covenants and agrees that it has not and shall not and that its sole shareholder, Pledgor has not and shall not, and Borrower’s general partner(s), if
such Borrower is a partnership, or its managing member(s), if such Borrower is a limited liability company (unless such Borrower or such general partner is a Delaware single member limited liability company with a board of managers containing at
least two (2) Independent Directors, in which case this Section 4.1.22 shall not apply to such Borrower’s or general partner’s member) (such general partner(s) that are not Delaware single member limited liability companies and such
managing member(s) of Borrower that are not Delaware single member limited liability companies, collectively, “Principals”) has not and shall not: 
  
 (a) with respect to Borrower, engage in any business or activity other than the ownership of its interests in Mortgage
Borrower and entering into the Loan, and activities incidental thereto, and with respect to Pledgor, engage in any business or activity other than the ownership of its interest in Borrower, and activities incidental thereto; 
  
 (b) with respect to Borrower, acquire or own any material assets other than
(i) the interests in Mortgage Borrower, and (ii) such incidental Personal Property as may be necessary therefor and with respect to Pledgor, acquire or own any material asset other than its interest in Borrower; 
  
 (c) merge into or consolidate with any Person, to the fullest extent that any
of the following may be waived or prohibited under Applicable Laws, dissolve, terminate or liquidate in whole or in part, transfer or otherwise dispose of all or substantially all of its assets or change its legal structure; 
  

 47 

 (d) (i) fail to observe its organizational formalities or preserve its existence as an entity duly
organized, validly existing and in good standing (if applicable) under the laws of the jurisdiction of its organization or formation, and qualification to do business in the Commonwealth of Puerto Rico, or (ii) without the prior written consent of
Lender, which consent shall not be unreasonably withheld, conditioned or delayed, amend, modify, terminate or fail to comply with the provisions of Borrower’s, Mortgage Borrower’s or Pledgor’s certificate of incorporation or similar
organizational documents, as the case may be, or of Principal’s partnership agreement, articles of organization or similar organizational documents, as the case may be, whichever is applicable, except to the extent that any amendment to a filed
certification may be required by Applicable Law; 
  
 (e) except
with respect to Mortgage Borrower and Pledgor, own any subsidiary or make any investment in, any Person without the consent of Lender; 
  
 (f) commingle its assets with the assets of any of its members, general partners, Affiliates, principals or of any other Person, participate in a cash
management system with any other entity or person or fail to use its own separate stationery, telephone number, invoices and checks; 
  
 (g) with respect to Borrower, incur any debt, secured or unsecured, direct or contingent (including guaranteeing any obligation), other than the Debt, or
cause, permit or suffer to exist any debt, secured or unsecured, direct or contingent (including guaranteeing any obligation) of Mortgage Borrower, other than the Mortgage Loan, and debt permitted thereunder; 
  
 (h) become insolvent and fail to pay its debts and liabilities (including, as
applicable, shared personnel and overhead expenses) from its assets as the same shall become due (except for debts and liabilities being contested by Borrower in good faith and in accordance with the terms hereof); 
  
 (i) (i) fail to maintain its records (including financial statements), books
of account and bank accounts separate and apart from those of the members, general partners, principals and Affiliates of Borrower, Pledgor or Mortgage Borrower or of each Principal, as the case may be, the Affiliates of a member, general partner or
principal of Borrower, Pledgor or Mortgage Borrower or of each Principal, as the case may be, and any other Person, (ii) permit its assets or liabilities to be listed as assets or liabilities on the financial statement of any other Person or (iii)
include the assets or liabilities of any other Person on its financial statements except as either of (ii) or (iii) of this Subsection may be required by GAAP and specifically permitted consolidated financial statements; provided, however, that any
such consolidated financial statement shall contain a note indicating that its separate assets and liabilities are neither available to pay the debts of the consolidated entity nor constitute obligations of the consolidated entity; 
  
 (j) enter into any contract or agreement with any member, general partner,
principal or Affiliate of Borrower, Pledgor, Mortgage Borrower, any Principal, Guarantor or Indemnitor, or any member, general partner, principal or Affiliate thereof (other than a business management services agreement with an Affiliate of
Borrower, Pledgor or Mortgage Borrower, provided that (i) the manager, or equivalent thereof, under such agreement holds itself out as an agent of Borrower, Pledgor or Mortgage Borrower, as the case may be, and (ii) the agreement meets the standards
set forth in this subsection (j) following this parenthetical), except (A) upon terms and conditions that are commercially reasonable, intrinsically fair and substantially similar to those that would be available on an arms-length basis with third
parties other than any member, general partner, principal or Affiliate of Borrower, Pledgor, Mortgage Borrower, or of such Principal, as the case may be, Guarantor or Indemnitor, or any member, general partner, principal or Affiliate thereof and (B)
in accordance with this Agreement; 
  

 48 

 (k) to the fullest extent that the following may be waived or prohibited by Applicable Law, seek the
dissolution or winding up in whole, or in part, of Borrower, Pledgor, Mortgage Borrower or of any Principal, as the case may be; 
  
 (l) fail to correct any known misunderstandings regarding the separate identity of Borrower, Pledgor, Mortgage Borrower or of Principal, as the case may
be, or any member, general partner, principal or Affiliate thereof or any other person; 
  
 (m) except as set forth in the Loan Documents, guarantee or become obligated for the debts of any other entity or Person or hold itself out to be responsible for the debts of another Person; 
  
 (n) make any loans or advances to any third party, including any member,
general partner, principal or Affiliate of any Borrower, Pledgor, Mortgage Borrower or of any Principal, as the case may be, or any member, general partner, principal or Affiliate thereof, and shall not acquire obligations or securities of any
member, general partner, principal or Affiliate of any Borrower, Pledgor, Mortgage Borrower or any Principal, as the case may be, or any member, general partner, or Affiliate thereof; 
  
 (o) fail to file its own tax returns or be included on the tax returns of any other Person except as required by Applicable
Law; 
  
 (p) fail either to hold itself out to the public as a
legal entity separate and distinct from any other Person or to conduct its business solely in its own name or a name franchised or licensed to it by an entity other than an Affiliate of Borrower or of any Principal (except for services rendered and
names licensed, franchised or furnished under business management service agreements with an Affiliate that complies with the terms hereof, so long as the manager, or equivalent thereof, under such business management services agreements holds
itself out as an agent of Borrower), as the case may be, and not as a division or part of any other entity in order not (i) to mislead others as to the identity with which such other party is transacting business, or (ii) to suggest that Borrower,
Pledgor, Mortgage Borrower or any Principal, as the case may be, is responsible for the debts of any third party (including any member, general partner, principal or Affiliate of Borrower, Pledgor, Mortgage Borrower, or of any Principal, as the case
may be, or any member, general partner, principal or Affiliate thereof); 
  
 (q) fail to maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations; 
  
 (r) share any common logo with or hold itself out as or be considered as a
department or division of (i) any general partner, principal, member or Affiliate of Borrower, Pledgor, Mortgage Borrower or of Principal, as the case may be, (ii) any Affiliate of a general partner, principal or member of Borrower or of a
Principal, as the case may be, or (iii) any other Person (except for services rendered and names licensed, franchised or furnished under business management service agreements with an Affiliate that complies with the terms hereof, so long as the
manager, or equivalent thereof, under such business management services agreements holds itself out as an agent of Borrower); 
  
 (s) fail to allocate fairly and reasonably any overhead expenses that are shared with an Affiliate, including paying for office space and services
performed by any employee of an Affiliate; 
  
 (t) pledge its
assets for the benefit of any other Person, other than with respect to the Loan and other than as set forth in the Loan Documents; 
  
 (u) fail to maintain a sufficient number of employees in light of its contemplated business operations; 
  

 49 

 (v) fail to provide in its (i) articles of organization, certificate of formation and/or operating
agreement, as applicable, if it is a limited liability company, (ii) partnership agreement, if it is a partnership or (iii) certificate of incorporation, if it is a corporation, that for so long as the Loan is outstanding pursuant to the Note, this
Agreement and the other Loan Documents, it shall not file or consent to the filing of any petition, either voluntary or involuntary, to take advantage of any applicable insolvency, bankruptcy, liquidation or reorganization statute, or make an
assignment for the benefit of creditors without the affirmative vote of the Independent Director and of all other general partners/managing members/directors or fail to cause Mortgage Borrower to provide in its (x) articles of organization,
certificate of formation and/or operating agreement, as applicable, if it is a limited liability company, (y) partnership agreement, if it is a partnership or (z) certificate of incorporation, if it is a corporation, that for so long as Mortgage
Loan is outstanding such Mortgage Borrower shall not file or consent to the filing of any petition, either voluntary or involuntary, to take advantage of any applicable insolvency, bankruptcy, liquidation or reorganization statute, or make an
assignment for the benefit of creditors without the affirmative vote of the Independent Director and of all other general partners/managing members/directors; 
  

(w) fail to hold its assets in its own name; 
  
 (x) if such Borrower is a corporation, fail to consider the interests of its creditors in connection with all corporate actions to the extent permitted by
Applicable Law; 
  
 (y) have any of its obligations guaranteed by
an Affiliate, except for (i) Borrower’s obligations under the Loan Documents, (ii) the Guaranty of Recourse Obligations of Borrower, (iii) the Environmental Indemnity, and (iv) that certain Pension Plan Obigations Guaranty dated the date
hereof; 
  
 (z) violate or cause to be violated the assumptions
made with respect to Borrower, Mortgage Borrower and Principal in the Insolvency Opinion or any Additional Insolvency Opinion, as applicable; 
  
 (aa) with respect to Borrower and Pledgor fail at any time to have at least two independent directors of its board of directors (collectively, the
“Independent Director”) that each are not and have not been for at least five (5) years (a) stockholders, directors or members of its board of directors (with the exception of serving as the Independent Director of any Principal or
any bankruptcy remote special purpose entity which is an Affiliate of any Principal, Borrower, Pledgor or Mortgage Borrower), officers, employees, partners, members, attorneys or counsel of Borrower, Mortgage Borrower, Pledgor or of Principal or any
Affiliate of either of them; (b) customers (other than as hotel guests), suppliers or other Person who derives more than one percent (1%) of its profits or revenues (other than any fee paid to such director as compensation for such director to serve
as an Independent Director) from its activities with Borrower, Pledgor, Mortgage Borrower, any Principal or any Affiliate of any of them (a “Business Party”); (c) a Person or other entity controlling or under common control with any
such stockholder, partner, member, director, officer, attorney, counsel or Business Party; or (d) a member of the immediate family of any such stockholder, director, officer, employee, partner, member, attorney, counsel or Business Party. (As used
herein, the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of management, policies or activities of a Person, whether through ownership of voting securities, by contract or
otherwise); 
  
 (bb)with respect to Borrower, Pledgor and each
Principal, permit its board of directors to take any action which, under the terms of any certificate of incorporation, by-laws or any voting trust agreement with respect to any common stock, requires the unanimous vote of one hundred percent (100%)
of the members of the board unless at the time of such action there shall be at least two members who are Independent Directors; 
  

 50 

 (cc) authorize or issue any additional shares of stock; and 
  
 (dd) Borrower shall cause Mortgage Borrower to comply with the provisions of
the Mortgage Loan Documents corresponding to the provisions of this Section 4.1.22. 
  
 4.1.23 Business Purposes 
  
 The Loan is solely for the business purpose of Borrower, and is not for personal, family, household, or agricultural purposes. 
  
 4.1.24 Taxes 
  
 Except as set forth on Schedule XXI hereto, Borrower, Mortgage Borrower, any Guarantor and any Indemnitor have filed all federal, State, county,
municipal, and city income and other tax returns required to have been filed by them and have paid all taxes and related liabilities which have become due pursuant to such returns or pursuant to any assessments received by them (except for such
Taxes if the failure to pay such Taxes would not have a material adverse effect on Borrower, Mortgage Borrower, the Collateral or the Property). Borrower knows of no basis for any additional assessment in respect of any such taxes and related
liabilities for prior years which would reasonably be expected to have a material adverse effect on Borrower, Mortgage Borrower or the Property. 
  
 4.1.25 Forfeiture 
  
 To the best of Borrower’s knowledge, there has not been and shall never be committed by any Person in occupancy of or involved with the operation or
use of any Property any act or omission affording the federal government or any State or local government the right of forfeiture as against any Property or any part thereof or any of the Collateral or any monies paid in performance of any
Borrower’s Obligations or any Mortgage Borrower’s performance of its obligations under the Mortgage Loan. Borrower hereby covenants and agrees to cause Mortgage Borrower not to commit, permit or suffer to exist any act or omission
affording such right of forfeiture. 
  
 4.1.26 Environmental
Representations and Warranties 
  
 Borrower represents and
warrants, based upon an environmental site assessment of the Property and to the best of Borrower’s knowledge, that: (a) there are no Hazardous Materials or underground storage tanks in, on, or under the Property, except those that are in
compliance with Environmental Laws and with permits issued pursuant thereto (if such permits are required) or fully disclosed to Lender in writing pursuant to the written reports resulting from the environmental site assessments of the Property
delivered to Lender (the “Environmental Reports”); (b) there are no past or present Releases of Hazardous Materials in violation of any Environmental Law and which would require remediation by a Governmental Authority in, on, under
or from any Property except as described in the Environmental Reports; (c) there is no Release of Hazardous Materials migrating to any Property except as described in the Environmental Reports; (d) there is no past or present noncompliance with
Environmental Laws, or with permits issued pursuant thereto, in connection with any Property except as described in the Environmental Reports; (e) except as set forth in the Environmental Reports, Borrower has not received any written notice or
other communication from any Person (including but not limited to a Governmental Authority) requiring remediation of Hazardous Materials in, on, under or from any Property; and (f) Borrower has truthfully and fully provided to Lender, in writing,
any and all information relating to environmental conditions in, on, under or from any Property known to such Borrower or contained in such Borrower’s current files and records, and any reports commissioned by Borrower or any Affiliate of

  

 51 

 
any Borrower or Guarantor relating to Hazardous Materials in, on, under or migrating to or from any Property and/or to the environmental condition of any
Property. 
  
 4.1.27 Loan to Value. 
  
 The aggregate maximum principal amount of the Loan and the Mortgage Loan does
not exceed one hundred twenty-five percent (125%) of the aggregate fair market value of the Property as of the date hereof. 
  
 4.1.28 Taxpayer Identification Number. 
  
 Borrower’s United States taxpayer identification number is 20-0300985. 
  
 4.1.29 Warranty of Title 
  
 Borrower represents and warrants that it owns 100% of the shares in Mortgage Borrower and that Borrower holds such interests free and clear of all Liens,
encumbrances and charges (other than those created pursuant to the Loan Documents) and has the full power, authority and right to execute, deliver and perform its Obligations under this Agreement and to encumber, mortgage, give, grant, bargain,
sell, alienate, enfeoff, convey, confirm, pledge, assign, hypothecate and grant a security interest in such shares as Collateral for the Loan. For so long as any amounts in respect of the Loan remain outstanding, (A) Borrower shall forever warrant,
defend and preserve such title and the validity and priority of the Lien of Lender on the Collateral, and shall forever warrant and defend such title, validity and priority to Lender against the claims of all persons whomsoever as to its interest in
the Collateral, and (B) Borrower shall cause Mortgage Borrower to warrant and defend, the title of Mortgage Borrower to the Property. Borrower represents and warrants that Mortgage Borrower has good and marketable title to the Property, as
applicable, in fee simple (or in the case of the Employee Parking Lot and the Loading Dock Parcel, leasehold estate) free and clear of all Liens, encumbrances and charges (other than those permitted pursuant to the Mortgage Loan Documents) and has
the full power, authority and right to execute, deliver and perform its obligations under the Mortgage Loan Documents and to encumber, mortgage, give, grant, bargain, sell, alienate, enfeoff, convey, confirm, pledge, assign, hypothecate and grant a
security interest in its interests in the Property. Except as set forth on the rent roll attached hereto as Schedule II, there are no leases or licenses for the use of property affecting the Property. None of the Permitted Encumbrances has a
material adverse effect or otherwise materially interferes with the current use of the Property as a hotel, or with the ability of any Borrower, Principal or Mortgage Borrower to perform its obligations under the Loan Documents or the Mortgage Loan
Documents. Any Borrower or Pledgor purporting to grant to Lender a Lien on any other Collateral has good and marketable title in and to such Collateral free and clear of all Liens, encumbrances and charges whatsoever other than the Lien created by
the Loan Documents in favor of Lender and the Permitted Encumbrances. Borrower shall reimburse Lender for any Losses incurred by Lender if an interest in the Property or the Collateral is claimed by another Person (other than for Permitted
Encumbrances and other than by, through or under Lender of Mortgage Lender), and such Losses and any other amounts expended by Lender with respect to such Losses shall be added to the Debt. All proceeds payable under the Owner’s Title Insurance
Policy, subject to the rights of Mortgage Lender, if any, under its mortgage title insurance policy, not used to discharge any Lien or encumbrance on the Property or to repair or restore the Property to correct any defect shall be deemed to
constitute a distribution from Mortgage Borrower to Borrower and subject to the provisions of the Security Instruments and this Agreement. 
  
 4.1.30 Intentionally Omitted. 
  

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 4.1.31 Ground Lease Representations. 
  
 Borrower represents and warrants that in connection with the Leasehold Property: 
  
 (a) The Ground Lease is in full force and effect and has not been modified or
amended in any manner whatsoever, (b) there are no defaults under the Ground Lease and no event has occurred which but for the passage of time, or notice, or both would constitute a default under the Ground Lease, (c) all rents, additional rents and
other sums due and payable under the Ground Lease have been paid in full, and (d) none of Borrower, Mortgage Borrower or the landlord under the Ground Lease has commenced any action or given or received any notice for the purpose of terminating any
of the Ground Lease. 
  
 (b) The Ground Lease or memoranda thereof
and all amendments thereto have been duly recorded, the Ground Lease permits the interest of the lessee thereunder to be encumbered by the applicable Security Instrument, and there has not been any change in the terms of the Ground Lease since their
recordation except as may be provided in recorded amendments thereto; 
  
 (c) Except as indicated in the Title Insurance Policy, Mortgage Borrower’s interests in the Ground Lease are not subject to any Liens other than the Lien of the Mortgage Loan; 
  
 (d) the Ground Lease is assignable upon notice and consent to lessor
thereunder, however, such consent consent shall not be unreasonably withheld, conditioned or delayed by the lessor; 
  
 (e) the Ground Leases requires the lessor thereunder to give notice of any default by Mortgage Borrower to Mortgage Lender and the Ground Lease further
provides that notice of termination given under the Ground Lease is not effective against Mortgage Lender or Lender unless a copy of such notice has been delivered to Mortgage Lender in the manner described in the Ground Lease; 
  
 (f) Lender is permitted a reasonable opportunity to cure any default under
the Ground Lease, which is curable after the receipt of notice of any default before the lessor thereunder may terminate the Ground Lease; 
  
 (g) The Ground Lease has a term which extends not less than twenty (20) years beyond the date hereof; 
  
 (h) The Ground Lease requires the lessor to enter into a new lease upon
termination of the Ground Lease for any reason, including rejection of the Ground Lease in a bankruptcy proceeding; and 
  
 (i) Under the terms of the Ground Lease and the applicable Loan Documents, taken together, any Net Proceeds, to the extent payable to Borrower, will be
applied either to the Restoration of all or part of the Property, with Lender or a trustee appointed by Lender having the right to hold and disburse such Net Proceeds as the Restoration progresses, or to the payment of the outstanding principal
balance of the Loan together with any accrued interest thereon. 
  
 4.1.32 Representations in the Mortgage Loan Documents 
  
 Borrower has reviewed the representations and warranties made by, and covenants of Mortgage Borrower to and for the benefit of Mortgage Lender contained in the Mortgage Loan Documents and such representations and warranties are true,
correct and complete in all material respects and such representations and warranties are incorporated herein by this reference as if fully set forth herein and deemed made by such Borrower for the benefit of Lender in connection with the Loan. As
of the Closing Date, all conditions precedent to the making of the Mortgage Loan and all funding conditions set forth in 

  

 53 

 
the Mortgage Loan Documents have been fully complied with and satisfied or waived by the Mortgage Lender, or are the subject of a post-closing undertaking
approved by Lender. There is no Event of Default under (and as such term is defined in) any of the Mortgage Loan Documents. Borrower has delivered to Lender or has agreed to deliver to Lender true, complete and correct copies of all Mortgage Loan
Documents. 
  
 4.1.33 Control 
  
 Borrower (subject to Applicable Laws and the consent rights of the
Independent Director) has the power and authority to control the actions of the Mortgage Borrower, and upon the realization of the Collateral under the Pledge Agreements, Lender or any other party succeeding to Borrower’s interest in the
Collateral described in the Pledge Agreements would have such control. Without limiting the foregoing, Borrower has sufficient control over Mortgage Borrower (subject to Applicable Laws and the consent rights of the Independent Director) to cause
Mortgage Borrower to (i) take any action on Mortgage Borrower’s part required by the Loan Documents and (ii) refrain from taking any action prohibited by the Loan Documents. 
  
 4.1.34 Personal Holding Company. 
  
 Neither Borrower, Pledgor nor any Principal is a “personal holding company” as defined in Section 542 of the Code.

  
 4.1.35 Intentionally Omitted. 
  
 4.1.36 OFAC. 
  
 Borrower represents and warrants that none of Borrower, Mortgage Borrower,
Guarantor, Indemnitor or any of their respective Affiliates is a Prohibited Person, and Borrower, Mortgage Borrower, Guarantor, Indemnitor and their respective Affiliates are in full compliance with all applicable orders, rules, regulations and
recommendations of The Office of Foreign Assets Control of the U.S. Department of the Treasury. 
  
 Section 4.2 Survival of Representations 
  
 Borrower agrees that all of the representations and warranties of such Borrower set forth in Section 4.1 and elsewhere in this Agreement and in the other
Loan Documents shall survive for so long as any amount remains owing to Lender under this Agreement or any of the other Loan Documents by Borrower. All representations, warranties, covenants and agreements made in this Agreement or in the other Loan
Documents by Borrower shall be deemed to have been relied upon by Lender notwithstanding any investigation heretofore or hereafter made by Lender or on its behalf. 
  

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	 	V.	BORROWER COVENANTS 

  
 Section 5.1 Affirmative Covenants 
  
 From the date hereof and until payment and performance in full of all Obligations or the earlier release of the Liens of the Security Instruments
encumbering the Collateral (and all related obligations) in accordance with the terms of this Agreement and the other Loan Documents, Borrower hereby covenants and agrees with Lender that, subject to the terms of the Mortgage Loan Documents and the
rights of Mortgage Lender thereunder: 
  
 5.1.1 Existence;
Compliance with Legal Requirements 
  
 Borrower shall do or
cause to be done all things necessary to preserve, renew and keep in full force and effect its and Mortgage Borrower’s existence, rights, licenses, permits and franchises and comply in all material respects with all Legal Requirements
applicable to it, Mortgage Borrower, the Property and the Collateral. Borrower shall at all times maintain, preserve and protect, or cause to be maintained, preserved and protected, all material franchises and trade names and preserve, or cause to
be preserved, all the remainder of its and Mortgage Borrower’s property used or useful in the conduct of its and Mortgage Borrower’s business and shall cause the Property to be kept in good working order and repair, and from time to time
cause to be made, all reasonably necessary repairs, renewals, replacements, betterments and improvements thereto. Borrower shall cause the Property to be kept insured at all times by financially sound and reputable insurers, to such extent and
against such risks, and maintain liability and such other insurance, as is more fully provided in this Agreement. After prior written notice to Lender, Borrower or Mortgage Borrower, at each’s own expense, may contest by appropriate legal
proceeding promptly initiated and conducted in good faith and with due diligence, the validity of any Legal Requirement, the applicability of any Legal Requirement to Borrower, Mortgage Borrower, Collateral or the Property or any alleged violation
of any Legal Requirement, provided that (i) no Event of Default has occurred and remains uncured; (ii) such proceeding shall be permitted under and be conducted in accordance with the provisions of any material instrument to which Borrower or
Mortgage Borrower, as applicable, is subject and shall not constitute a default thereunder and such proceeding shall be conducted in accordance with all applicable statutes, laws and ordinances; (iii) none of the Property, the Collateral nor any
part thereof or interest therein will be in danger of being sold, forfeited, terminated, cancelled or lost; (iv) Borrower or Mortgage Borrower, as applicable, shall promptly upon final determination thereof comply with any such Legal Requirement
determined to be valid or applicable or cure any violation of any Legal Requirement; (v) such proceeding shall suspend the enforcement of the contested Legal Requirement against Borrower, Mortgage Borrower, the Property or the Collateral, as
applicable; and (vi) Borrower shall cause to be furnished such security as may be required in the proceeding, or as may be reasonably requested by Lender, to insure compliance with such Legal Requirement, together with all interest and penalties
payable in connection therewith. Lender may apply any such security, as necessary to cause compliance with such Legal Requirement at any time when, in the reasonable judgment of Lender, the validity, applicability or violation of such Legal
Requirement is finally established or the Property or the Collateral (or any part thereof or direct or indirect interest therein (which direct or indirect interest shall include, without limitation, any equity interest in Mortgage Borrower)) shall
be in danger of being sold, forfeited, terminated, cancelled or lost. To the extent that Mortgage Borrower satisfied requirements under the Mortgage Loan Documents for the furnishing of security in any such proceeding contesting a Legal Requirement,
Borrower shall not be required to furnish security hereunder with respect to such proceeding. 
  
 5.1.2 Taxes and Other Charges 
  
 Subject to Borrower’s right to contest (or Mortgage Borrower’s right to contest) the same, if any, in accordance with the terms and conditions of this Section 5.1.2, Borrower shall cause to be paid all Taxes and Other Charges now
or hereafter levied or assessed or imposed against it, Mortgage Borrower, its interests in Mortgage Borrower, the Collateral or the Property or any part thereof as the same become due and payable; provided, however, Borrower’s obligation with
respect to the payment of Taxes shall be suspended for so long as such Borrower complies with the terms and provisions of Section 7.2 hereof. Borrower will deliver to Lender receipts for payment or other evidence satisfactory to Lender that the
Taxes and Other Charges with respect the Collateral and/or the Property have been so paid or are not then delinquent no later than ten (10) days prior to the date on which the Taxes and/or Other Charges would otherwise be delinquent if not paid.
Borrower shall furnish to Lender copies of receipts for the payment of the Taxes and Other Charges prior to the date the same shall become delinquent (provided, however, that 

  

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such Borrower is not required to furnish such receipts for payment of Taxes in the event that such Taxes have been paid by Lender pursuant to Section 7.2
hereof or by Mortgage Lender). Except for Permitted Encumbrances, Borrower shall not suffer and shall promptly cause to be paid and discharged any Lien or charge whatsoever which may be or became a Lien or charge against the Collateral or the
Property, and shall cause to be paid promptly all utility services provided to the Property. After prior written notice to Lender, Borrower, at its own expense, may contest (or cause Mortgage Borrower to contest) by appropriate legal proceeding,
promptly initiated and conducted in good faith and with due diligence, the amount or validity or application in whole or in part of any Taxes or Other Charges or any other Lien or charge that may become a Lien or charge against the Property or the
Collateral, provided that (i) no Event of Default has occurred and remains uncured; (ii) such proceeding shall be permitted under and be conducted in accordance with the provisions of any other instrument to which Borrower or Mortgage Borrower, as
applicable, is subject and shall not constitute a default thereunder and such proceeding shall be conducted in accordance with all applicable statutes, laws and ordinances; (iii) none of the Property, the Collateral, or any part thereof or interest
therein will be in danger of being sold, forfeited, terminated, cancelled or lost; (iv) Borrower shall promptly upon final determination thereof pay the amount of any such Taxes or Other Charges or the amount necessary to discharge any Lien or
satisfy any charge that may become a Lien or charge against the Property or Collateral, together with all costs, interest and penalties which may be payable in connection therewith; (v) such proceeding shall suspend the collection of such contested
Taxes or Other Charges from the Property or with respect to the Collateral; and (vi) Borrower shall cause to be furnished such security as may be required in the proceeding, or as may be reasonably requested by Lender, to insure the payment of any
such Taxes or Other Charges or the amount necessary to discharge any Lien or satisfy any charge that may become a Lien or charge against the Property or Collateral, together with all interest and penalties thereon. Lender may pay over any such cash
deposit or part thereof held by Lender to the claimant entitled thereto at any time when, in the reasonable judgment of Lender, the entitlement of such claimant is finally established or the Property or the Collateral (or part thereof or interest
therein) shall be in danger of being sold, forfeited, terminated, cancelled or lost or there shall be any danger of the Lien of any Security Instrument or mortgage with respect to the Property being primed by any related Lien that is not a Permitted
Encumbrance. To the extent that Mortgage Borrower satisfied requirements under the Mortgage Loan Documents for the furnishing of security in any such proceeding contesting Taxes or Other Charges, Borrower shall not be required to furnish security
hereunder with respect to such proceeding. 
  
 5.1.3
Litigation 
  
 Borrower shall give prompt written notice to
Lender of any litigation or governmental proceedings pending or threatened against Borrower which could reasonably be expected to materially adversely affect Borrower’s condition (financial or otherwise) or business, the Collateral or the
Property. 
  
 5.1.4 Access to Property; Books and Records

  
 Borrower shall cause to be permitted agents, representatives
and employees of Lender to inspect the Property or Borrower’s or Mortgage Borrower’s books and records or any part thereof at reasonable hours upon reasonable advance written notice, subject to the rights of tenants and guests of the
Property. 
  

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 5.1.5 Notice of Default 
  
 Borrower shall promptly advise Lender of any material adverse change in Borrower’s or Mortgage Borrower’s
condition, financial or otherwise, or of the occurrence of any Default or Event of Default or any default under the Mortgage Loan Documents of which Borrower has knowledge which Default, Event of Default or default continues after the expiration of
any applicable cure periods therein provided. 
  
 5.1.6
Cooperate in Legal Proceedings 
  
 Borrower shall cooperate
fully with Lender with respect to any proceedings before any court, board or other Governmental Authority which may in any way affect the rights of Lender hereunder or any rights obtained by Lender under any of the other Loan Documents and, in
connection therewith, permit Lender, at its election, to participate in any such proceedings. 
  
 5.1.7 Award and Insurance Benefits 
  
 Subject to the terms hereof, Borrower shall cooperate with Lender in obtaining for Lender the benefits of any Awards or Insurance Proceeds lawfully or equitably payable in connection with Borrower’s interests in
the Collateral and indirect interests in the Property, and Lender shall be reimbursed for any reasonable out-of-pocket expenses incurred in connection therewith (including reasonable attorneys’ fees and disbursements, and the payment by
Borrower of the expense of an appraisal on behalf of Lender in case of Casualty or Condemnation affecting the Property or any part thereof) out of such Award or Insurance Proceeds. 
  
 5.1.8 Further Assurances 
  
 Borrower shall, at Borrower’s sole cost and expense: 
  
 (a) furnish to Lender all instruments, documents, boundary surveys, footing or foundation surveys, certificates, plans and specifications, appraisals,
title and other insurance reports and agreements, and each and every other document, certificate, agreement and instrument required to be furnished by Borrower pursuant to the terms of the Loan Documents or reasonably requested by Lender in
connection therewith; 
  
 (b) execute and deliver to Lender such
documents, instruments, certificates, assignments, mortgages, mortgage expansions, mortgage notes and other writings, and do such other acts necessary or desirable, to evidence, preserve and/or protect the Collateral at any time securing or intended
to secure the Obligations, as Lender may reasonably require including, without limitation, the execution of UCC financing statements, and subject to the rights of Mortgage Lender and to the terms and conditions of the Mortgage Loan Documents the
execution and delivery of all such writings necessary to transfer any liquor licenses and/or casino licenses, to the extent permitted by Applicable Law, into the name of Lender or its designee after the occurrence and during the continuance of any
Event of Default; and 
  
 (c) do and execute all and such further
lawful and reasonable acts, conveyances and assurances for the better and more effective carrying out of the intents and purposes of this Agreement and the other Loan Documents, as Lender may reasonably require from time to time. 
  

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 5.1.9 Mortgage and Intangible Taxes 
  
 Borrower shall pay or cause to be paid all State, county and municipal recording, mortgage, and intangible, and all other
taxes imposed upon the execution and recordation of the Security Instruments and/or upon the execution and delivery of the Note. 
  
 5.1.10 Financial Reporting 
  
 (a) Borrower will keep and maintain or will cause to be kept and maintained on a Fiscal Year basis, in accordance with GAAP (or such other accounting
basis acceptable to Lender), proper and accurate books, records and accounts reflecting all of the financial affairs of such Borrower and all items of income and expense in connection with the operation by Mortgage Borrower on an individual basis of
the Property. Lender shall have the right from time to time at all times during normal business hours upon reasonable advance written notice to examine such books, records and accounts at the office of such Borrower or any other Person maintaining
such books, records and accounts and to make such copies or extracts thereof as Lender shall desire. After the occurrence and during the continuance of an Event of Default, Borrower shall pay any costs and expenses incurred by Lender to examine
Borrower’s and Mortgage Borrower’s accounting records with respect to the Property and the Collateral as Lender shall determine to be necessary or appropriate in the protection of Lender’s interest. 
  
 (b) Borrower will furnish to Lender annually, within one hundred and twenty
(120) days following the end of each Fiscal Year, a complete copy of Borrower’s annual financial statements audited by a “Big Four” accounting firm or other independent certified public accountant reasonably acceptable to Lender in
accordance with principles of the Uniform System of Accounts (or such other accounting basis acceptable to Lender) covering the Property and the Collateral for such Fiscal Year and containing statements of profit and loss for Borrower, Mortgage
Borrower and the Property and a balance sheet. Lender acknowledges that the initial annual audited financial statements to be delivered by Borrower at the end of Borrower’s Fiscal Year following the Closing Date shall reflect operations for
Borrower’s entire current Fiscal Year. Such statements shall set forth the financial condition and the results of operations for the Property and the business of Borrower, Mortgage Borrower, for such Fiscal Year, and shall include, but not be
limited to, amounts representing annual Net Cash Flow, Net Operating Income, Gross Income From Operations and Operating Expenses. Borrower’s annual financial statements shall be accompanied by (i) an Officer’s Certificate stating that each
such annual financial statement presents fairly the financial condition and the results of operations of Borrower, Mortgage Borrower and the Property being reported upon and has been prepared in accordance with principles of the Uniform System of
Accounts, (ii) an unqualified opinion of a “Big Four” accounting firm or other independent certified public accountant reasonably acceptable to Lender, (iii) a list of tenants, if any, individually or together with its Affiliates,
occupying more than ten percent (10%) of the total floor area of the Improvements on the Property, (iv) a breakdown showing the year in which each Lease then in effect expires and the percentage of total floor area of the Improvements and the
percentage of base rent with respect to which Leases shall expire in each such year, each such percentage to be expressed on both a per year and cumulative basis, and (v) a schedule audited by such independent certified public accountant reconciling
Net Operating Income to Net Cash Flow (the “Net Cash Flow Schedule”), which shall itemize all adjustments made to Net Operating Income to arrive at Net Cash Flow deemed material by such independent certified public accountant.
Together with Borrower’s and Mortgage Borrower’s annual financial statements, Borrower shall furnish to Lender an Officer’s Certificate certifying as of the date thereof whether, to the best of Borrower’s knowledge, (A) there
exists an event or circumstance which constitutes a Default or Event of Default under the Loan, and if such a Default or Events of Default exists, the nature thereof, the period of time it has existed and the action then being taken to remedy the
same and (B) there exists an event or circumstance which constitutes a Default (which continues after the expiration of all applicable cure periods) under the Mortgage Loan Documents, and if such Default or Event of Default exists, the nature
thereof, the period of time it has existed and the action then being taken to remedy the same. 
  

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 (c) Borrower will furnish, or cause to be furnished, to Lender on or before thirty (30) days after the
end of each calendar month the following items, accompanied by an Officer’s Certificate stating that, to the best of Borrower’s knowledge, such items are true, correct, accurate, and complete in all material respects and fairly present the
financial condition and results of the operations of the Property (subject to normal year-end adjustments) as applicable: (i) an occupancy report for the subject month including an average daily rate, and any and all franchise inspection reports
received by Borrower during the subject month; (ii) unaudited financial statements covering the Property including, without limitation, monthly, year-to-date and trailing twelve (12) month operating statements prepared for each calendar month,
noting Net Operating Income, Gross Income From Operations, and Operating Expenses (not including any contributions to the Replacement Reserve Fund), and each line item comprising Net Operating Income, Gross Income From Operations and Operating
Expenses and other information necessary and sufficient to fully represent the financial position and results of operation of the Property during such calendar month, and during the continuance of a Triggering Event a comparison of budgeted income
and expenses and the actual income and expenses together with a detailed explanation of any variances of five percent (5%) or more and over $10,000.00 between budgeted and actual amounts for such periods, all in form reasonably satisfactory to
Lender, (iii) a calculation reflecting the annual Debt Service Coverage Ratio for the immediately preceding twelve (12) month period as of the last day of such month, assuming an interest rate constant equal to the Contract Rate, (iv) to the extent
any tenant individually or together with its Affiliates occupy ten percent (10%) or more of the total floor area of the Property, an updated rent roll and (v) a report setting forth Capital Expenditures for such calendar month. In addition, such
Officer’s Certificate shall also state that the representations and warranties of Borrower set forth in Section 4.1.22 are true and correct in all material respects as of the date of such certificate and, except as expressly permitted under
Section 4.1.22, that there is no debt outstanding. Following the occurrence and during the continuance of a Triggering Event, Borrower will furnish, or cause to be furnished, to Lender on or before thirty (30) days after the end of each calendar
month a calculation reflecting the Debt Service Coverage Ratio for such calendar month prepared assuming an interest rate constant equal to the Cure Contract Rate accompanied by an Officer’s Certificate with respect thereto. 
  
 (d) For the partial year period commencing on the date hereof, and for each
Fiscal Year thereafter, Borrower shall submit to Lender an Annual Budget not later than thirty (30) days prior to the commencement of such period or Fiscal Year in form reasonably satisfactory to Lender and shall be subject to Lender’s written
approval, not to be unreasonably withheld (each such Annual Budget after it has been approved in writing by Lender shall be hereinafter referred to as an “Approved Annual Budget”). Lender’s approval of a proposed Annual Budget
shall be deemed to have been given if such proposed Annual Budget is submitted to Lender with a request for approval and Lender does not respond by approving such proposed Annual Budget or stating its objections to such proposed Annual Budget within
twenty (20) Business Days of Lender’s receipt thereof and after Lender’s failure to respond to the initial request for approval of such proposed Annual Budget after such 20 Business Day period, Borrower shall re-submit such proposed Annual
Budget to Lender with a request for approval set forth in a written notice that states clearly (in 14-point type or larger) that approval will be deemed given if Lender does not respond within twenty (20) Business Days and Lender does not respond to
such second submission of such proposed Annual Budget by approving such proposed Annual Budget or stating its objection thereto within twenty (20) Business Days of Lender’s receipt of such second submission. Until such time that Lender approves
or is deemed to have approved a proposed Annual Budget, the most recently Approved Annual Budget shall apply; provided that such Approved Annual Budget shall be adjusted to reflect (x) matters in the proposed Annual Budget approved by Lender and (y)
as to matters in the proposed Annual Budget not yet approved by Lender (“Disapproved Budget Category”) (i) increases for expenses actually incurred which vary in relation to gross revenues (“Variable Expenses”) in
an amount equal to the percentage increase of actual fiscal year to date gross revenues over estimated fiscal year to date gross revenues for the period in question set forth in the most recent Approved Annual Budget (“Gross Revenues
Percentage Increase”) through the date of the applicable expenditure, and (ii) expenditures 

  

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actually incurred which are beyond the reasonable control of Borrower such as taxes, utilities and insurance (“Uncontrollable Expenses”).
Notwithstanding anything in any of the Loan Documents to the contrary, expenditures shall be deemed in compliance with and made pursuant to the Approved Annual Budget even though such expenditures exceed the amount budgeted therefor in the Approved
Annual Budget if such expenditures are (i) for Uncontrollable Expenses, (ii) Variable Expenses which exceed the amounts budgeted therefor by not more than the Gross Revenues Percentage Increase, and (iii) with respect to the planned Capital
Expenditures, in an amount of total Capital Expenditures within 5% of the most recently Approved Annual Budget. In addition, in the event the actual cost of any approved Capital Expenditure is less than the budgeted amount thereof contained in the
Approved Annual Budget, Borrower may apply such savings to other approved Capital Expenditures contained in the Approved Annual Budget. Lender acknowledges that the Annual Budget for Fiscal Year 2003 is satisfactory to Lender for the purpose of this
Section 5.1.10(d). 
  
 (e) Intentionally Omitted. 
  
 (f) Borrower will furnish, or cause to be furnished, an annual comparison of
the budgeted total income and total expenses to the actual total income and total expenses and an annual occupancy report including an average daily room rate with respect to the Property, within one hundred twenty (120) days after the close of each
Fiscal Year of such Borrower. 
  
 (g) Provided Lender is complying
with Applicable Laws, Borrower agrees that Lender may forward to each purchaser, transferee, assignee, servicer, participant, co-lender or investor in all or any portion of the Loan or any Securities (collectively, the “Investor”)
or any Rating Agency rating such participations and/or Securities and each prospective Investor, and any organization maintaining databases on the underwriting and performance of commercial mortgage loans, all documents and information which Lender
now has or may hereafter acquire relating to the Debt and to Borrower, any Guarantor, any Indemnitor and the Property, whether furnished by Borrower, any Guarantor, any Indemnitor or otherwise, as Lender determines necessary or desirable. Borrower
irrevocably waives any and all rights it may have under any Applicable Laws to prohibit such disclosure, including, but not limited to, any right of privacy. 
  
 (h) Borrower shall promptly send to Lender all quality assurance reports or other reports of inspection with respect to the Property delivered by Manager,
if any. 
  
 (i) If requested by Lender, Borrower shall provide
Lender, promptly upon request, with the following financial statements if, at the time a preliminary or final prospectus, prospectus supplement, private placement memorandum, offering circular or other offering document (the “Disclosure
Document”) is being prepared for a Securitization, it is expected that the principal amount of the Loan together with any Affiliated Loans at the time of Securitization may, or if the principal amount of the Loan together with any Affiliated
Loans at any time during which the Loan and any Affiliated Loans are included in a Securitization does, equal or exceed 20% of the aggregate principal amount of all mortgage loans included or expected to be included, as applicable, in the
Securitization: 
  
 (i) A balance sheet with
respect to the Property for the two most recent fiscal years, meeting the requirements of Section 210.3-01 of Regulation S-X of the Securities Act and statements of income and statements of cash flows with respect to the Property for the three most
recent fiscal years, meeting the requirements of Section 210.3-02 of Regulation S-X, and, to the extent that such balance sheet is more than 135 days old as of the date of the document in which such financial statements are included, interim
financial statements of the Property meeting the requirements of Section 210.3-01 and 210.3-02 of Regulation S-X (all of such financial statements, collectively, the “Standard Statements”); provided, however, that with respect to
the 

  

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Property (other than properties that are hotels, nursing homes, or other property that would be deemed to constitute a business and not real estate under
Regulation S-X or other legal requirements) that has been acquired by such Borrower from an unaffiliated third party (such Property, “Acquired Property”), as to which the other conditions set forth in Section 210.3-14 of Regulation
S-X for provision of financial statements in accordance with such Section have been met, in lieu of the Standard Statements otherwise required by this Section, such Borrower shall instead provide the financial statements required by such Section
210.3-14 of Regulation S-X (“Acquired Property Statements”). 
  
 (ii) Not later than thirty (30) days after the end of each fiscal quarter following the date hereof, a balance sheet of the Property as of the end of such fiscal quarter, meeting the requirements of Section 210.3-01
of Regulation S-X, and statements of income and statements of cash flows of the Property for the period commencing following the last day of the most recent fiscal year and ending on the date of such balance sheet and for the corresponding period of
the most recent fiscal year, meeting the requirements of Section 210.3-02 of Regulation S-X (provided, that if for such corresponding period of the most recent fiscal year Acquired Property Statements were permitted to be provided hereunder pursuant
to subsection (i) above, such Borrower shall instead provide Acquired Property Statements for such corresponding period). 
  
 (iii) Not later than seventy-five (75) days after the end of each fiscal year following the date hereof, a balance sheet of the Property
as of the end of such fiscal year, meeting the requirements of Section 210.3-01 of Regulation S-X, and statements of income and statements of cash flows of the Property for such fiscal year, meeting the requirements of Section 210.3-02 of Regulation
S-X. 
  
 (j) Within ten (10) Business Days after notice from the
Lender in connection with the Securitization of this Loan, such additional financial statements, such that, as of the date (each an “Offering Document Date”) of each Disclosure Document, Borrower shall have provided Lender with all
financial statements as described in subsection (i)(i) above; provided that the fiscal year and interim periods for which such financial statements shall be provided shall be determined as of such Offering Document Date. 
  
 (k) If requested by Lender, Borrower shall provide Lender, promptly upon
request (but in no event later than the time periods set forth in Section 5.1.10(i) hereof), with summaries of the financial statements referred to in Section 5.1.10(i) hereof if, at the time a Disclosure Document is being prepared for a
Securitization, it is expected that the principal amount of the Loan and any Affiliated Loans at the time of Securitization may, or if the principal amount of the Loan and any Affiliated Loans at any time during which the Loan and any Affiliated
Loans are included in a Securitization does, equal or exceed 10% (but is less than 20%) of the aggregate principal amount of all mortgage loans included or expected to be included, as applicable, in a Securitization. Such summaries shall meet the
requirements for “summarized financial information,” as defined in Section 210.1 02(bb) of Regulation S-X, or such other requirements as may be determined to be necessary or appropriate by Lender. 
  
 (l) All financial statements provided by Borrower hereunder pursuant to
Section 5.1.10(i)(i) and (k) hereof shall be prepared in accordance with GAAP, and shall meet the requirements of Regulation S-X and other applicable legal requirements. All financial statements referred to in Subsections 5.1.10(i)(i) and
5.1.10(i)(iii) above shall be audited by independent accountants of Borrower acceptable to Lender in accordance with Regulation S-X and all other applicable legal requirements, shall be accompanied by the manually executed report of the independent
accountants thereon, which report shall meet the requirements of Regulation S-X and all other applicable legal requirements, and shall be further accompanied by a manually executed written consent of the independent accountants, in form and 

  

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substance acceptable to Lender, to the inclusion of such financial statements in any Disclosure Document and any Exchange Act Filing and to the use of the
name of such independent accountants and the reference to such independent accountants as “experts” in any Disclosure Document and Exchange Act Filing, all of which shall be provided at the same time as the related financial statements are
required to be provided. All financial statements (audited or unaudited) provided by Borrower under this Section 5.1.10 shall be certified by an authorized officer of Borrower, which certification shall state that such financial statements meet the
requirements set forth in the first sentence of this Section 5.1.10(l). 
  
 (m) If requested by Lender, Borrower shall provide Lender, promptly upon request, with any other or additional financial statements, or financial, statistical or operating information, as Lender shall determine to be required pursuant to
Regulation S-X or any amendment, modification or replacement thereto or other legal requirements in connection with any Disclosure Document or any Exchange Act filing in connection with or relating to a Securitization or as shall otherwise be
reasonably requested by the Lender. 
  
 (n) In the event Lender
determines, in connection with a Securitization, that the financial statements required in order to comply with Regulation S-X or other legal requirements are other than as provided herein, then notwithstanding the provisions of Sections 5.1.10(i),
(k) and (l) hereof, Lender may request, and Borrower shall promptly provide, such combination of Acquired Property Statement and/or Standard Statements or such other financial statements as Lender determines to be necessary or appropriate for such
compliance. 
  
 (o) The term “Affiliated Loans” shall
mean a loan made by Lender or Mortgage Lender to a parent, subsidiary or such other entity affiliated with Borrower, any Indemnitor or any Guarantor. 
  
 (p) Any reports, statements or other information required to be delivered under this Agreement shall be delivered (i) in paper form, (ii) on a diskette
(to the extent available with reasonable efforts), and (iii) if requested by Lender and within the capabilities of Borrower’s data systems without change or modification thereto, in electronic form, and prepared using a Microsoft Word for
Windows or WordPerfect for Windows files (which files may be prepared using a spreadsheet program and saved as word processing files). 
  
 (q) Borrower shall deliver to Lender within ten (10) days after receipt of notice from Lender that a Securitization is expected to occur, the Casino
Budget and shall promptly deliver updates to the Casino Budget as it is updated by Mortgage Borrower from time to time. 
  
 5.1.11 Business and Operations 
  
 Borrower will continue to engage in the businesses presently conducted by it as and to the extent the same are necessary for the ownership, management and
operation of the Collateral. Borrower will remain in good standing under the laws of each jurisdiction the extent required for the ownership, management and operation of the Collateral. Borrower will cause Mortgage Borrower to continue to engage in
the businesses presently conducted by it as and to the extent the same are necessary for the ownership, management, maintenance and operation of the Property. Borrower will cause Mortgage Borrower to remain in good standing under the laws of each
jurisdiction the extent required for the ownership, management, maintenance and operation of the Property. 
  

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 5.1.12 Costs of Enforcement 
  
 In the event (a) that any of Security Instruments encumbering any Collateral is foreclosed or realized upon in whole or in
part or that any such Security Instrument is put into the hands of an attorney for collection, suit, action or foreclosure, (b) of the foreclosure of any mortgage prior to or subsequent to any such Security Instrument encumbering any Collateral in
which proceeding Lender is made a party, or (c) of the bankruptcy, insolvency, rehabilitation or other similar proceeding in respect of Borrower or any of its constituent Persons or an assignment by Borrower or any of its constituent Persons for the
benefit of its creditors, Borrower, its successors or assigns, shall be chargeable with and agrees to pay all reasonable costs of collection and defense, including reasonable attorneys’ fees and costs, incurred by Lender or Borrower in
connection therewith and in connection with any appellate proceeding or post-judgment action involved therein, together with all required service or use taxes. 
  

5.1.13 Estoppel Statement 
  
 (a) After written request by Lender, Borrower shall within fifteen (15) days furnish Lender with a statement, duly acknowledged and certified, setting
forth (i) the amount of the original principal amount of the Note, (ii) the unpaid principal amount of the Note, (iii) the Applicable Interest Rate of the Note, (iv) the date installments of interest and/or principal were last paid, (v) any then
known offsets or defenses to the payment of the Debt, if any, and (vi) that the Note, this Agreement, the Security Instruments and the other Loan Documents are valid, legal and binding obligations and have not been modified or if modified, giving
particulars of such modification. 
  
 (b) Borrower shall cause a
copy of any tenant estoppel certificates obtained from each commercial tenant leasing space at the Property to be delivered to Lender. 
  
 (c) After written request by Borrower, Lender shall furnish to Borrower within fifteen (15) days, a statement setting forth (i) the amount of the original
principal amount of the Note, (ii) the unpaid principal amount of the Note, (iii) the Applicable Interest Rate, (iv) the amount of Reserve Funds held by Lender, if any, (iv) that the Loan Documents have not been modified (or, listing such
modifications, if applicable), (v) that there are no currently outstanding notices of Default sent to Borrower (or listing such notices, if applicable) and (vi) the date the last installment of principal and interest has been paid. 
  
 5.1.14 Loan Proceeds 
  
 Borrower shall use the proceeds of the Loan received by it on the Closing
Date only for the purposes set forth in Section 2.1.4. Borrower shall cause Mortgage Borrower to use the proceeds of the Mortgage Loan in accordance with the provisions thereof. 
  
 5.1.15 Performance by Borrower 
  
 Borrower shall in a timely manner observe, perform and fulfill each and every covenant, term and provision of each Loan
Document executed and delivered by, or applicable to, such Borrower, and shall not enter into or otherwise suffer or permit any amendment, waiver, supplement, termination or other modification of any Loan Document executed and delivered by, or
applicable to, such Borrower without the prior written consent of Lender. 
  
 5.1.16 Confirmation of Representations 
  
 Borrower shall deliver, in connection with any Securitization, (a) one or more Officer’s Certificates certifying as to the accuracy of all representations made by such Borrower in the Loan Documents as of the
date of the closing of such Securitization in all relevant jurisdictions (or if any such representations are no longer true, providing an explanation as to the reason for such untruth), and (b) 

  

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certificates of the relevant Governmental Authorities in all relevant jurisdictions indicating the good standing and qualification of such Borrower and
Principal as of the date of the Securitization. 
  
 5.1.17
Leasing Matters 
  
 (a) With respect to the Property,
Borrower shall not, without the prior written consent of Lender, which consent shall not be unreasonably withheld, conditioned or delayed, permit, enter into and, except to the extent required pursuant to the terms of an existing Material Lease,
renew, extend, amend, modify, waive any provisions of, terminate, reduce rents under, accept a surrender of space under, or shorten the term of, any Material Lease or any instrument guaranteeing or providing credit support for a Material Lease or
permit, cause or suffer Mortgage Borrower to do any of the foregoing. Notwithstanding the foregoing, provided Mortgage Borrower (i) self manages the parking applicable to the Property or (ii) enters into an acceptable replacement parking concession
agreement with respect to parking at the Property, which replacement parking concession agreement must be approved by Lender, such approval not to be unreasonably withheld or delayed, Borrower shall be permitted to terminate that certain month to
month parking concession agreement with American Parking System, Inc. (the “Operator”) originally dated April 1, 1995, as modified by that certain Letter Agreement between Mortgage Borrower and Operator dated June 30, 2003, if the
Operator fails to commence construction of the parking facility which Operator is obligated to build at that certain property described on Exhibit J attached hereto and made a part hereof as such obligation shall be set forth in that certain form of
deed of ground lease to be entered into between certain Affiliates of Borrower and Operator. Furthermore, Lender’s consent shall not be required for Borrower to enter into (a) a parking concession agreement, (b) a restaurant concession
agreement, and (c) a disco concession agreement, provided, however, with respect to each such concession agreement (1) no Event of Default has occurred and is continuing and (2) the applicable concession agreement is substantially in form and
substance as the parking, restaurant and/or disco concession agreement, as applicable, attached hereto as Exhibit K. 
  
 (b) Borrower shall, and shall cause Mortgage Borrower, (i) to observe and perform all the obligations imposed upon the lessor under the Material Leases
and not do or permit to be done anything to impair the value of any of the Material Leases as security for the Debt; (ii) promptly to send copies to Lender of all notices of default or other material matters which Borrower or Mortgage Borrower shall
send or receive thereunder, (iii) to enforce all of the material terms, covenants and conditions contained in the Material Leases upon the part of the tenant thereunder to be observed or performed in a commercially reasonable manner (except for
termination of a Lease other than as provided in Section 5.1.17(a) hereof) which shall require Lender’s prior approval, which approval shall not be unreasonably withheld, conditioned or delayed); (iv) except as set forth on Schedule XIX
attached hereto and made a part hereof, not to collect any of the Rents more than one (l) month in advance (except security deposits shall not be deemed Rents collected in advance); (v) not to execute any other assignment of the lessor’s
interest in any of the Leases or the Rents; and (vi) not to consent to any assignment of or subletting under any Material Leases not in accordance with their terms, without the prior written consent of Lender, which consent shall not be unreasonably
withheld, conditioned or delayed. Lender shall not unreasonably withhold, condition or delay approval of the execution of any subordination and non-disturbance or similar recognition agreement requested by any tenant under a Lease provided (i)
Lender has approved such Lease, which approval shall not be unreasonably withheld, conditioned or delayed and (ii) such agreement is in form, scope and substance reasonably acceptable to Lender. To the extent Lender’s prior written approval is
required pursuant to this Section 5.1.17, Lender shall have fifteen (15) calendar days from receipt of written request and any and all reasonably required information and documentation relating thereto in which to approve or disapprove such request,
provided, such request to Lender is marked in bold lettering with the following language: “LENDER’S RESPONSE IS REQUIRED WITHIN FIFTEEN (15) CALENDAR DAYS OF RECEIPT OF THIS NOTICE PURSUANT TO THE TERMS OF A LOAN AGREEMENT BETWEEN THE
UNDERSIGNED AND LENDER” and the envelope containing the 

  

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request must be marked “PRIORITY”. In the event Lender fails to respond to the information and proposed documentation within such time,
Lender’s approval shall be deemed given. Borrower shall be required to provide Lender with such information and documentation as may be reasonably required by Lender, including without limitation, lease comparables and other market information.
Should Lender fail to approve any such request, Lender shall give Borrower written notice setting forth in reasonable detail the basis for such disapproval. 
  
 (c) Borrower may cause Mortgage Borrower, without the consent of Lender, to amend, modify or waive the provisions of any Lease or terminate, reduce rents
under, accept a surrender of space under, or shorten the term of, any Lease (including any guaranty, letter of credit or other credit support with respect thereto) provided that such Lease is not a Material Lease and that such action (taking into
account, in the case of a termination, reduction in rent, surrender of space or shortening of term, the planned alternative use of the affected space) does not have a material adverse effect on the value of the Property taken as a whole, and
provided that such Lease, as amended, modified or waived, is otherwise in compliance with the requirements of this Agreement, and the Mortgage Loan Agreement. A termination of a Lease (other than a Material Lease) with a tenant who is in default
beyond applicable notice and grace periods shall not be considered an action which has a material adverse effect on the value of the Property taken as a whole. Any amendment, modification, waiver, termination, rent reduction, space surrender or term
shortening which does not satisfy the requirements set forth in this Subsection shall be subject to the prior written approval of Lender, not to be unreasonably withheld, conditioned or delayed and at Borrower’s expense. At Lender’s
request, Borrower shall promptly deliver to Lender copies of all Leases, amendments, modifications and waivers which are entered into pursuant to this Section 5.1.17(c) together with Borrower’s certification that it has satisfied all of the
conditions of this Section 5.1.17(c). 
  
 (d) Subject to the
rights of Mortgage Lender under the Mortgage Loan Documents, upon the occurrence and during the continuance of an Event of Default, to the extent permitted by law, Borrower shall promptly cause to be deposited with Lender any and all monies
representing security deposits under the Leases, whether or not Borrower or Mortgage Borrower actually received such monies (the “Security Deposits”). Lender shall hold the Security Deposits in accordance with the terms of the
respective Lease, and shall only release the Security Deposits in order to return a tenant’s Security Deposit to such tenant if such tenant is entitled to the return of the Security Deposit under the terms of the Lease and is not otherwise in
default under the Lease. To the extent required by Legal Requirements, Lender shall hold the Security Deposits in an interest bearing account selected by Lender in its sole discretion. In the event Lender is not permitted by law to hold the Security
Deposits, Borrower shall cause the Security Deposits to be deposited into an Eligible Account. Anything herein to the contrary notwithstanding, Lender’s rights under this Section 5.1.17 shall be subject and subordinate to Mortgage Lender’s
rights pursuant to the Mortgage Loan Documents. 
  
 (e) Except as
otherwise permitted herein, no warrants, stock options or similar rights in any tenant at any Property or any Affiliate thereof, any licensee or any other Person providing any services related to or for the benefit of the Property may be granted to
Borrower, Mortgage Borrower or Pledgor or their respective Affiliates in connection with any lease or in connection with any Property unless, subject to the rights of Mortgage Lender, Lender or Mortgage Lender receives a perfected security interest
in such warrants, stock options or similar rights as security for the Debt or the Mortgage Debt. 
  

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 5.1.18 Management Agreement. 
  
 (a) The Improvements on the Property are operated under the terms and conditions of the Management Agreement or Replacement
Management Agreement as applicable. Borrower shall cause Mortgage Borrower to (i) diligently perform and observe in all material respects all of the terms, covenants and conditions of the Management Agreement or Replacement Management Agreement, if
applicable, on the part of such Mortgage Borrower to be performed and observed to the end that all things shall be done which are necessary to keep unimpaired the material rights of such Mortgage Borrower under the Management Agreement or
Replacement Management Agreement, if applicable and (ii) promptly notify Lender of the giving of any notice to such Mortgage Borrower of any material default by such Mortgage Borrower in the performance or observance of any of the terms, covenants
or conditions of the Management Agreement or Replacement Management Agreement, if applicable on the part of such Mortgage Borrower to be performed and observed and deliver to Lender a true copy of each such notice. Borrower shall not, and shall not
cause, permit, suffer to exist the surrender of the Management Agreement or Replacement Management Agreement, if applicable, a consent to the assignment by the Manager of its interest under the Management Agreement (except as provided herein) or
Replacement Management Agreement, if applicable, or a termination or cancellation of the Management Agreement or Replacement Management Agreement, if applicable, or a modification, change, supplement, alteration or amendment of the Management
Agreement or Replacement Management Agreement, if applicable, in any material respect, either orally or in writing, without the prior written consent of Lender, which consent shall not be unreasonably withheld, conditioned or delayed. Borrower
hereby assigns to Lender as further security for the payment of the Debt and for the performance and observance of the terms, covenants and conditions of this Agreement, all the rights, privileges and prerogatives of Borrower to surrender the
Management Agreement or Replacement Management Agreement, if applicable, or to terminate, cancel, modify, change, supplement, alter or amend the Management Agreement or Replacement Management Agreement, if applicable, in any respect, and any such
surrender of the Management Agreement or Replacement Management Agreement, if applicable, or termination, cancellation, modification, change, supplement, alteration or amendment of the Management Agreement or Replacement Management Agreement, if
applicable, without the prior consent of Lender, which consent shall not be unreasonably withheld, conditioned or delayed, shall be void and of no force and effect. If Mortgage Borrower shall default in the performance or observance of any material
term, covenant or condition of the Management Agreement or Replacement Management Agreement, if applicable, on the part of Mortgage Borrower to be performed or observed, then, without limiting the generality of the other provisions of this
Agreement, and without waiving or releasing Borrower from any of its obligations hereunder, Lender shall have the right, but shall be under no obligation, to pay any sums and to perform any act or take any action as may be appropriate to cause all
the terms, covenants and conditions of the Management Agreement or Replacement Management Agreement, if applicable, on the part of Mortgage Borrower to be performed or observed to be promptly performed or observed on behalf of Mortgage Borrower, to
the end that the rights of Mortgage Borrower in, to and under the Management Agreement or Replacement Management Agreement, if applicable, shall be kept unimpaired and free from default. Lender and any person designated by Lender shall have, and are
hereby granted, the right upon reasonable advance written notice to Borrower and Mortgage Borrower to enter upon the Property at any time and from time to time for the purpose of taking any such action. If the Manager shall deliver to Lender a copy
of any notice sent to a Mortgage Borrower of material default under the Management Agreement or Replacement Management Agreement, if applicable, such notice shall constitute full protection to Lender for any action taken or omitted to be taken by
Lender in good faith, in reliance thereon unless such action constitutes the willful misconduct, fraud, illegal acts or gross negligence of Lender or Lender’s agent. Borrower shall notify Lender if the Manager sub-contracts to a third party any
or all of its management responsibilities under the Management Agreement or Replacement Management Agreement, if applicable. Borrower shall, from time to time, obtain from the Manager such certificates of estoppel with respect to compliance by
Mortgage Borrower with the terms of the Management Agreement or Replacement Management Agreement, if applicable, as may be reasonably requested by Lender to the extent provided for in the Management Agreement or Replacement Management Agreement if
the Manger is not an affiliate of Borrower. Borrower shall exercise or cause the exercise of each individual option, if any, to extend or renew the term of the Management Agreement or Replacement Management Agreement, if applicable, upon demand by
Lender made at any time within one (1) year of the last day upon which any such option 

  

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may be exercised, and Borrower hereby expressly authorizes and appoints Lender its attorney-in-fact to exercise any such option in the name of and upon
behalf of Borrower, as the sole owner of Mortgage Borrower, which power of attorney shall be irrevocable and shall be deemed to be coupled with an interest. Any sums expended by Lender pursuant to this paragraph shall bear interest at the Default
Rate from the date such cost is incurred to the date of payment to Lender, shall be deemed to constitute a portion of the Debt, shall be secured by the Lien of the Security Instruments and the other Loan Documents and shall be immediately due and
payable upon demand by Lender therefor. 
  
 (b) Without limitation
of the foregoing but subject to the rights of the Mortgage Lender, Borrower, upon the request of Lender, shall cause to be terminated the Management Agreement or Replacement Management Agreement, if applicable and replace the Manager, without
penalty or fee, if at any time during the Loan: (a) the Manager shall become insolvent or a debtor in any bankruptcy or insolvency proceeding, (b) provided the Manager is an Affiliated Manager, there exists a non-monetary Event of Default which
remains uncured for at least thirty (30) days following written notice from Lender to Borrower of such non-monetary Event of Default (provided, however, such thirty day notice and cure period is solely for the purpose of terminating the Management
Agreement and Lender reserves all rights it has upon an Event of Default pursuant to Article VIII of this Agreement including, without limitation, a foreclosure of the Security Instruments), (c) provided the Manager is an Affiliated Manager, there
exists a monetary Event of Default which remains uncured, or (d) there exists a default beyond all applicable notice and grace periods by Manager under the Management Agreement or Replacement Management Agreement, if applicable. At such time as the
Manager may be removed, a Qualified Manager shall assume management of the Property pursuant to a Replacement Management Agreement. 
  
 5.1.19 Environmental Covenants 
  
 Except for conditions that exist on the date hereof and are expressly disclosed in an Environmental Report, (a) Borrower covenants and agrees that so long
as Mortgage Borrower owns, manages, is in possession of, or otherwise controls the operation of the Property: (i) all uses and operations on or of the Property, whether by Borrower, Mortgage Borrower or any other Person, shall be in compliance with
all Environmental Laws and permits issued pursuant thereto; (ii) there shall be no Releases of Hazardous Materials by Borrower, Mortgage Borrower or any Affiliate of Borrower or Mortgage Borrower in, on, under or from the Property and Borrower shall
use its commercially reasonable efforts, or cause commercially reasonable efforts to be used, to insure that there shall be no Releases of Hazardous Materials by any Person other than Borrower, Mortgage Borrower or any Affiliate of Borrower or
Mortgage Borrower in, on, under or from the Property; (iii) there shall be no Hazardous Materials in, on, or under the Property, except those that are in compliance in all material respects with all Environmental Laws and with permits issued
pursuant thereto, if and to the extent required; (iv) Borrower shall keep, or cause to be kept, the Property free and clear of all Liens and other encumbrances imposed pursuant to any Environmental Law, whether due to any act or omission of
Borrower, Mortgage Borrower or any other Person (the “Environmental Liens”); (v) Borrower shall, at its sole cost and expense, fully and expeditiously cooperate, and cause Mortgage Borrower to fully and expeditiously cooperate, in
all activities pursuant to paragraph (b) below, including but not limited to providing all relevant information and making knowledgeable persons available for interviews; (vi) Borrower shall, at its sole cost and expense, perform, and cause Mortgage
Borrower to perform, any environmental site assessment or other investigation of environmental conditions in connection with the Property, pursuant to any reasonable written request of Lender, upon Lender’s reasonable belief that the Property
is not in full compliance with all Environmental Laws, and share with Lender the reports and other results thereof, and Lender and other Indemnified Parties shall be entitled to rely on such reports and other results thereof; (vii) Borrower shall,
at its sole cost and expense, comply, and cause Mortgage Borrower to comply, with all reasonable written requests of Lender to reasonably effectuate remediation of any Hazardous Materials in, on, under or from the Property in order to comply with
any Environmental Law; (viii) Borrower shall use its best efforts, 

  

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and cause Mortgage Borrower to use its best efforts, to not allow any tenant or other user of the Property to violate any Environmental Law; and (ix)
Borrower shall immediately notify, and cause Mortgage Borrower to notify, Lender in writing after receipt of written notice of (A) any material presence or Release or threatened Releases of Hazardous Materials in, on, under, from or migrating
towards the Property; (B) any material non-compliance with any Environmental Laws related in any way to the Property; (C) any actual or potential Environmental Lien; (D) any required or proposed remediation of environmental conditions relating to
the Property; and (E) any written notice or other communication of which Borrower becomes aware from any source whatsoever (including but not limited to a governmental entity) relating in any way to the non-compliance of any Hazardous Materials with
all applicable Environmental Laws. 
  
 In the event Lender has a reasonable belief
that the Property is not in material compliance with all Environmental Laws, Lender and any other Person designated by Lender, including but not limited to any representative of a governmental entity, and any environmental consultant, and any
receiver appointed by any court of competent jurisdiction, shall have the right (subject to the rights of tenants and hotel guests), but not the obligation, to enter upon the Property at all reasonable times upon reasonable prior written notice to
Borrower to assess any and all aspects of the environmental condition of the Property and its use, including but not limited to, conducting any reasonably necessary environmental assessment or audit (the scope of which shall be determined in
Lender’s sole and absolute discretion) and taking samples of soil, groundwater or other water, air, or building materials, and conducting other invasive testing, and to take appropriate action to correct or ameliorate any material
non-compliance with Environmental Laws. Borrower shall cooperate with, and cause Mortgage Borrower to provide reasonable access to and cooperate with, Lender and any such Person designated by Lender. 
  
 5.1.20 Alterations. 
  
 Borrower shall obtain Lender’s prior written consent to any material
alterations to any Improvements, which consent shall not be unreasonably withheld, conditioned or delayed except with respect to alterations that could reasonably be expected to have a material adverse effect on Borrower’s financial condition,
the value of the Property, the Collateral or the annual Net Operating Income of the Property. Notwithstanding the foregoing, provided no Event of Default has occurred and is continuing, Lender’s consent shall not be required in connection with
any alterations that will not have a material adverse effect on Borrower’s financial condition, the value of the Property, the Collateral or the Net Operating Income of the Property, provided that such alterations (a) are made in connection
with tenant improvement work performed pursuant to the terms of any Lease executed on or before the date hereof or any Lease executed after the date hereof which is in compliance with the terms of this Agreement, (b) are made in connection with
tenant improvement work performed pursuant to the terms and provisions of a Lease and not adversely affecting any structural component of any Improvements, any utility or HVAC system contained in any Improvements or the exterior of any building
constituting a part of any Improvements, (c) relate solely to Equipment, or (d) together with the related costs thereof have been provided for in the Annual Budget which has been approved by Lender pursuant to the terms hereof and (i) are
non-structural in nature and (ii) are budgeted to cost (including all labor and materials) less than $500,000.00. Notwithstanding anything to the contrary contained in this Section 5.1.20, any alteration, the cost of which is equal to, or greater
than, $5,000,000.00 shall be subject to receipt of confirmation from the Rating Agencies that any such alteration will not result in a withdrawal, qualification, or downgrade of the then ratings assigned to the Securities. 
  
 5.1.21 Parking Lot Leases. 
  
 (a) Borrower shall cause Mortgage Borrower to comply with all of the terms
and conditions of the Employee Parking Lot Lease, the Miramar Lease, the Regency Lease and the Miami 

  

 68 

 
Lease (or the Substitute Miami Lot Lease (defined below), as applicable) and to perform all of its obligations thereunder in a timely manner. 
  
 Subject to the terms of the Employee Parking Lot Lease, Borrower hereby
covenants and agrees with Lender that it shall not grant its consent and/or approval to Lot Owner (to the extent such consent and/or approval is required pursuant to the Employee Parking Lot Lease) to the extent any such consent and/or approval
would reasonably be expected to have a material adverse affect to the Parking Area (as defined in the Employee Parking Lot Lease) and the operations of the Property without first obtaining Lender’s prior written consent and approval, which
consent and/or approval shall not be unreasonably withheld, conditioned or delayed. Notwithstanding the foregoing, in no event shall Borrower grant its approval and/or consent to any matter relating to the Alternate Parking Spaces (as defined in the
Employee Parking Lot Lease) to the extent any such consent and/or approval is required pursuant to the Employee Parking Lot Lease without first obtaining Lender’s prior written approval and consent which approval and consent shall not be
unreasonably withheld conditioned or delayed. Notwithstanding the terms of the Employee Parking Lot Lease, Lender hereby agrees that Lender’s consent to the subordination of the Employee Parking Lot Lease shall not be required provided that the
such subordination is conditioned upon the granting of non-disturbance to Borrower and Lender and the form of recognition and non disturbance agreement entered into is in form and substance substantially similar to the form of Recognition and Non
Disturbance Agreement attached hereto as Exhibit L. 
  
 Furthermore, Borrower covenants that at all times during the term of the Loan if Alternate Parking Spaces and/or any parking spaces (a) located on the Miramar Parcel (such parking spaces shall be referred to herein as the “Miramar
Spaces”) (b) made available pursuant to the Miami Lease (or the Substitute Miami Lot Lease) and/or (c) made available pursuant to the Regency Lease are no longer available for Mortgage Borrower’s and/or the Property’s use,
Borrower shall cause Mortgage Borrower to promptly replace such unavailable Alternate Parking Spaces and/or Miramar Spaces and/or spaces available pursuant to the Miami Lease (or the Substitute Miami Lot Lease) and/or Regency Lease, as applicable,
pursuant to a written lease acceptable to Lender, such acceptance not to be unreasonably withheld, conditioned or delayed provided such lease contains (i) market terms, (ii) a term equal to the lesser of (a) the period of time that the applicable
spaces are reasonably expected to be unavailable or (b) at least one (1) year, and (iii) is for a comparable number of parking spaces (as those that become unavailable) and such parking spaces are within reasonable and sufficient proximity to the
Property so as not to unreasonably interfere with the operations of the Property. 
  
 Notwithstanding anything to the contrary contained in the immediately preceding paragraph which relates to the Miami Lease or the Substitute Miami Lot Lease, Borrower covenants that it shall cause Mortgage Borrower to
use its best efforts to cause Regency’s interest in the Miami Lease to be assigned to Borrower within thirty (30) days of the date hereof (such thirty (30) day period, the “Miami Lease Assignment Period”). In the event
Regency’s interest in the Miami Lease is not assigned to Borrower upon the expiration of the Miami Lease Assignment Period, Borrower hereby covenants to cause Mortgage Borrower to enter into a substitute written lease within sixty (60) days of
the expiration of the Miami Lease Assignment Period acceptable to Lender, such acceptance not to be unreasonably withheld, conditioned or delayed provided such lease contains (i) market terms and (ii) a term equal to the lesser of (a) the period of
time that the applicable spaces are reasonably expected to be unavailable or (b) at least one (1) year and (iii) is for a comparable number of parking spaces (as those that become unavailable) and such parking spaces are within reasonable and
sufficient proximity to the Property so as not to unreasonably interfere with the operations of the Property (such substitute lease the “Substitute Miami Lot Lease”). 
  
 To the extent, if any, that Lender’s prior written approval and/or consent is required pursuant to this Section 5.1.21
such request for approval shall be deemed approved if (i) Lender shall 

  

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have failed to notify Borrower of its approval or disapproval within ten (10) days (the “Approval Period”) following Lender’s receipt of
Borrower’s written request together with any and all required material information and documentation relating thereto required by Lender to reach a decision and provided, the request to Lender is marked in bold lettering with the following:
“LENDER’S RESPONSE IS REQUIRED WITHIN TEN (10) DAYS OF RECEIPT OF THIS NOTICE PURSUANT TO THE TERMS OF THE LOAN AGREEMENT BETWEEN THE UNDERSIGNED AND LENDER” and the envelope containing the request must be marked “PRIORITY”,
(ii) Borrower shall have delivered to Lender a written notice of Lender’s failure to respond to Borrower’s request within the Approval Period (the “Failure to Respond Notice”), and (iii) Lender shall have failed to notify
Borrower of its approval or disapproval within eight (8) days following Lender’s receipt of the Failure to Respond Notice. Borrower shall be required to provide Lender with such material information and documentation as may be reasonably
required by Lender, in its reasonable discretion in order for Lender to determine whether or not to consent to any such request. Should Lender fail to approve any such request, Lender shall give written notice setting forth in reasonable detail the
basis for such disapproval. Notwithstanding any approval standards of Lender set forth in the Employee Parking Lot Lease which conflict with the standards set forth in this Section 5.1.21, the standards set forth in this Section 5.1.21 shall govern
any such approval. 
  
 5.1.22 Intentionally Omitted

  
 5.1.23 The Ground Lease. 
  
 (a) Borrower shall cause Mortgage Borrower to (i) pay all rents, additional
rents and other sums required to be paid by Mortgage Borrower, as tenant under and pursuant to the provisions of the Ground Lease, the Miami Lease and the Miramar Parcel Lease (except as otherwise provided in Section 7.4 hereof), (ii) diligently
perform and observe all of the terms, covenants and conditions of the Ground Lease on the part of Mortgage Borrower, as tenant thereunder, (iii) promptly notify Lender of the giving of any notice by a landlord under the Ground Lease to Mortgage
Borrower of any default by Mortgage Borrower, as tenant thereunder, and deliver to Lender a true copy of each such notice within five (5) Business Days of receipt and (iv) promptly notify Lender upon learning of any bankruptcy, reorganization or
insolvency of a landlord under a Ground Lease or of any notice thereof, and deliver to Lender a true copy of such notice within five (5) Business Days of Mortgage Borrower’s receipt. Notwithstanding the foregoing, so long as the Monthly Ground
Rent Deposit is duly deposited in accordance with the Mortgage Loan Documents and no Event of Default shall have occurred and be continuing, Borrower shall be deemed to have satisfied the then-current obligations of clause (i) above. Borrower shall
not and shall cause Mortgage Borrower not to, without the prior consent of Lender, surrender any leasehold estate created by the Ground Lease or terminate or cancel the Ground Lease or modify, change, supplement, alter or amend the Ground Lease, in
any material respect, either orally or in writing, and if a Mortgage Borrower shall default in the performance or observance of any material term, covenant or condition of the Ground Lease on the part of a Mortgage Borrower, as tenant thereunder,
Lender shall have the right, but shall be under no obligation, to pay any sums and to perform any act or take any action as may be appropriate to cause all of the terms, covenants and conditions of the Ground Lease on the part of Mortgage Borrower
to be performed or observed on behalf of Mortgage Borrower, to the end that the rights of Mortgage Borrower in, to and under the Ground Lease shall be kept unimpaired and free from default. If the landlord under the Ground Lease shall deliver to
Lender a copy of any notice of default under the Ground Lease, such notice shall constitute full protection to Lender for any action taken or omitted to be taken by Lender, in good faith, in reliance thereon, unless Lender’s action constitutes
gross negligence, fraud, illegal acts or willful misconduct. Borrower shall, and shall cause Mortgage Borrower to, exercise each individual option, if any, to extend or renew the term of the Ground Lease upon demand by Lender made at any time within
six (6) months prior to the last day upon which any such option may be exercised, and Borrower hereby expressly authorizes and appoints Lender its attorney-in-fact to cause 

  

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Mortgaged Borrower to exercise any such option in the name of and upon behalf of Mortgage Borrower, which power of attorney shall be irrevocable and shall be
deemed to be coupled with an interest. 
  
 (b) Subleases.
Notwithstanding anything contained in the Ground Lease to the contrary, Borrower shall cause Mortgage Borrower not to further sublet any portion of the Property (other than as otherwise permitted hereunder) without prior written consent of Lender.
Each sublease hereafter made shall provide that, (a) in the event of the termination of the Ground Lease, the sublease shall not terminate or be terminable by the sublessee; (b) in the event of any action for the foreclosure of the Security
Instrument with respect to the Property, the sublease shall not terminate or be terminable by the subtenant by reason of the termination of the Ground Lease unless the sublessee is specifically named and joined in any such action and unless a
judgment is obtained therein against the sublessee; and (c) in the event that the Ground Lease is terminated as aforesaid, the sublessee shall attorn to the lessor under the Ground Lease or to the purchaser at the sale of the Property on such
foreclosure, as the case may be. In the event that any portion of the Leasehold Property shall be sublet pursuant to the terms of this subsection, such sublease shall be deemed to be included in the Leasehold Property. 
  
 5.1.24 Covenants under the Mortgage Loan 
  
 Borrower has reviewed the covenants, undertakings and obligations of Mortgage
Borrower to and for the benefit of Mortgage Lender contained in the Mortgage Loan Documents and Borrower shall cause Mortgage Borrower to perform such covenants, undertakings and obligations and such covenants, undertakings and obligations are
incorporated herein by this reference as if fully set forth herein and deemed made by Borrower for the benefit of Lender in connection with the Loan. 
  
 5.1.25 O&M Program. 
  
 With respect to the Property, Borrower shall cause the Mortgage Borrower to enter into a contract with a licensed industrial hygienist to develop a fully
documented O&M Program which Borrower shall submit within one hundred and eighty (180) days of the date hereof to Lender for its reasonable approval. Borrower further covenants and agrees to cause the Mortgage Borrower to implement and follow in
all material respects the terms and conditions of such O&M Program during the term of the Loan, including any extension or renewal thereof. Lender’s requirement that Borrower cause the Mortgage Borrower to develop and comply with the
O&M Program shall not be deemed to constitute a waiver or modification of any of Borrower’s covenants and agreements with respect to Hazardous Materials or Environmental Laws. 
  
 5.1.26 Bankruptcy. 
  
 Borrower shall give prompt written notice to Lender of any voluntary or involuntary bankruptcy, reorganization, insolvency or similar proceeding under the
Bankruptcy Code (or other applicable law) against any Restricted Party or any tenant under any Material Lease. 
  
 5.1.27 Intentionally Omitted. 
  

 71 

 Section 5.2 Negative Covenants 
  
 From the date hereof until payment and performance in full of all obligations of Borrower under the Loan Documents or the
earlier release of the Liens of all of the Security Instruments encumbering the Collateral in accordance with the terms of this Agreement and the other Loan Documents, Borrower covenants and agrees with Lender that it will not do, directly or
indirectly, any of the following: 
  
 5.2.1 Liens

  
 Borrower shall not create, incur, assume or suffer to exist
any Lien on any portion of any Collateral or permit any such action to be taken, except Liens created by or being contested in accordance with or permitted pursuant to the Loan Documents. Borrower shall cause Mortgage Borrower not to create, incur,
assume or suffer to exist any Lien on any portion of the Property or permit any such action to be taken, except: (i) Permitted Encumbrances; (ii) Liens created by or permitted pursuant to the Mortgage Loan Documents; and (iii) Liens for Taxes or
Other Charges not yet due or delinquent. 
  
 5.2.2
Dissolution 
  
 Except as otherwise expressly permitted
hereunder, Borrower shall not, and shall cause Mortgage Borrower not to, (a) engage in any dissolution, liquidation or consolidation or merger with or into any other business entity, (b) engage in any business activity not related to the ownership
and operation of the Collateral or the Property, (c) transfer, lease or sell, in one transaction or any combination of transactions, the assets or all or substantially all of the Property or assets of Borrower or Mortgage Borrower, as applicable,
except to the extent permitted by the Loan Documents, (d) modify, amend, waive or terminate any material provision of its organizational documents or its qualification and good standing in any jurisdiction or (e) cause the Principal to (i) dissolve,
wind up or liquidate or take any action, or omit to take an action, as a result of which the Principal would be dissolved, wound up or liquidated in whole or in part, or (ii) amend, modify, waive or terminate the certificate of incorporation or
bylaws of the Principal, in each case, without obtaining the prior written consent of Lender, which consent shall not be unreasonably withheld, conditioned or delayed. 
  
 5.2.3 Change in Business 
  
 Borrower shall not enter into any line of business other than the ownership and operation of the Collateral, or make any material change in the scope or
nature of its business objectives, purposes or operations, or undertake or participate in activities other than the continuance of its present business. Borrower shall cause Mortgage Borrower not to enter into any line of business other than the
ownership and operation of the Property, or make any material change in the scope or nature of its business objectives, purposes or operations, or undertake or participate in activities other than the continuance of its present business. 

 
 5.2.4 Debt Cancellation 
  
 Borrower shall not cancel or otherwise forgive or release any claim or debt
owed to Borrower by any Person, except for adequate consideration and in the ordinary course of Borrower’s business or otherwise if such cancellation, release or forgiveness is prudent and commercially reasonable. Borrower shall cause Mortgage
Borrower not to cancel or otherwise forgive or release any claim or debt owed to Mortgage Borrower by any Person (other than termination of Leases in accordance therewith), except for adequate consideration and in the ordinary course of Mortgage
Borrower’s business or otherwise if such cancellation, release or forgiveness is prudent and commercially reasonable. 
  
 5.2.5 Zoning 
  
 Borrower shall cause not to be initiated, sought, or consented to, any zoning reclassification of any portion of the Property or any variance under any
existing zoning ordinance or use or permit the use of any portion of the Property in any manner that could result in such use becoming a non-conforming use under any zoning ordinance or any other applicable land use law, rule or regulation, without
the prior consent of Lender, which consent shall not be unreasonably withheld, conditioned or delayed. In addition, 

  

 72 

 
Borrower shall not, nor shall it permit Mortgage Borrower to, initiate, join in, acquiesce in, or consent to any change in any public or private restrictive
covenant or easement limiting, conditioning, changing, qualifying or defining the uses which may be made of the Property or any part thereof without the prior written consent of Lender, such consent not to be unreasonably withheld, conditioned or
delayed. If under applicable zoning provisions the use of all or any portion of the Property is or shall become a nonconforming use, Borrower will not cause or permit and shall cause Mortgage Borrower to not cause or permit the nonconforming use to
be discontinued or abandoned without the express written consent of Lender, such consent not to be unreasonably withheld, conditioned or delayed. 
  
 5.2.6 No Joint Assessment 
  
 Borrower shall cause not to be suffered, permitted or initiated the joint assessment of the Property with (a) any other real property constituting a tax
lot separate from the Property, or (b) any portion of the Property which may be deemed to constitute personal property, or any other procedure whereby the Lien of any taxes which may be levied against such personal property shall be assessed or
levied or charged to the Property. 
  
 5.2.7 Principal Place of
Business 
  
 Borrower shall not change its principal place of
business set forth in Schedule XX without first giving Lender thirty (30) days prior written notice. Borrower shall not change the place of its organization as set forth in Section 4.1.21 without the consent of Lender, which consent shall not
be unreasonably withheld, conditioned or delayed. Upon Lender’s request, Borrower shall execute and deliver and/or authorize additional financing statements, security agreements and other instruments which may be reasonably necessary to
effectively evidence or perfect Lender’s security interest in the Collateral as a result of such change of place of business or place of organization. 
  
 5.2.8 ERISA 
  
 (a) Borrower shall not engage in any transaction, and shall not permit, cause or suffer to exist the engagement of its Mortgage Borrower in any
transaction, which would cause any obligation, or action taken or to be taken, hereunder (or the exercise by Lender of any of its rights under the Note, this Agreement or the other Loan Documents) to be a non-exempt (under a statutory or
administrative class exemption) prohibited transaction under ERISA. 
  
 (b) Borrower further covenants and agrees to deliver to Lender such certifications or other evidence from time to time throughout the term of the Loan, as requested by Lender in its sole discretion, and represents and covenants that (A)
neither Borrower nor Mortgage Borrower is or does maintain an “employee benefit plan” as defined in Section 3(32) of ERISA, which is subject to Title I of ERISA, or a “governmental plan” within the meaning of Section 3(3) of
ERISA; (B) neither Borrower nor Mortgage Borrower is subject to State statutes regulating investments and fiduciary obligations with respect to governmental plans; (C) one or more of the following circumstances is true: (i) equity interests in such
Borrower are publicly offered securities, within the meaning of 29 C.F.R. § 2510.3-101(b)(2); (ii) less than twenty-five percent (25%) of each outstanding class of equity interests in Borrower are held by “benefit plan investors”
within the meaning of 29 C.F.R.§ 2510.3-101(f)(2); or (iii) Borrower qualifies as an “operating company” or a “real estate operating company” within the meaning of 29 C.F.R. § 2510.3-101 (c) or (e); and (D) one or more
of the following circumstances is true: (i) equity interests in Mortgage Borrower are publicly offered securities, within the meaning of 29 C.F.R. § 2510.3-101(b)(2); (ii) less than twenty-five percent (25%) of each outstanding class of equity
interests in Mortgage Borrower are held by “benefit plan investors” within the meaning of 29 C.F.R.§ 2510.3-101(f)(2); or (iii) Mortgage 

  

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Borrower qualifies as an “operating company” or a “real estate operating company” within the meaning of 29 C.F.R. § 2510.3-101 (c)
or (e). 
  
 5.2.9 Affiliate Transactions 
  
 Other than the Management Agreements and as expressly provided in Section
4.1.22 hereof, Borrower shall not enter into, or be a party to, or permit Mortgage Borrower to enter into, or be a party to, any transaction with an Affiliate of Borrower or Mortgage Borrower or any of the stockholders of Borrower or Mortgage
Borrower except in the ordinary course of business and on terms which are fully disclosed to Lender in advance and are no less favorable to Borrower, Mortgage Borrower or such Affiliate than would be obtained in a comparable arm’s-length
transaction with an unrelated third party. 
  
 5.2.10
Assets 
  
 Borrower shall not purchase or own any property
other than the Collateral. Borrower shall cause its Mortgage Borrower not to purchase or own any property other than the Property. 
  
 5.2.11 Debt 
  
 Borrower shall not create, incur or assume any Indebtedness other than the Debt except to the extent permitted hereby. Borrower shall cause Mortgage
Borrower not to create, incur or assume any Indebtedness other than the Mortgage Loan or as permitted under the Mortgage Loan Documents. 
  
 5.2.12 Transfers 
  
 (a) Borrower shall not sell, convey, mortgage, grant, bargain, encumber, pledge, assign, grant options with respect to, or otherwise transfer or dispose
of (directly or indirectly, voluntarily or involuntarily, by operation of law or otherwise, and whether or not for consideration or of record) any Collateral or any part thereof or any legal or beneficial interest therein or in Mortgage Borrower or
permit a Sale or Pledge of an interest in any Restricted Party (collectively, a “Transfer”) without (i) the prior written consent of Lender and (ii) if a Securitization has occurred or is pending within thirty (30) days, delivery to
Lender of written confirmation from the Rating Agencies that the Transfer will not result in the downgrade, withdrawal or qualification of the then current ratings assigned to any Securities or the proposed rating of any Securities. Borrower shall
not cause, permit or suffer to exist the sale, conveyance, mortgage, grant, bargain, encumbrance, pledge, assignment, grant of options with respect to, or other transfer or disposition of (directly or indirectly, voluntarily or involuntarily, by
operation of law or otherwise, and whether or not for consideration or of record) the Property or any part thereof or any legal or beneficial interest therein without the prior written consent of Lender, except as may be otherwise expressly
permitted in this Agreement. 
  
 (b) A Transfer shall include, but
not be limited to: (i) an installment sales agreement wherein Borrower agrees to sell the Collateral or any part thereof, or Mortgage Borrower agrees to sell the Property, for a price to be paid in installments; (ii) if a Restricted Party is a
corporation, any merger, consolidation or Sale or Pledge of such corporation’s stock or the creation or issuance of new stock; (iv) if a Restricted Party is a limited or general partnership or joint venture, any merger or consolidation or the
change, removal, resignation or addition of a general partner or the Sale or Pledge of the partnership interest of any general partner or any profits or proceeds relating to such partnership interest, or the Sale or Pledge of limited partnership
interests or any profits or proceeds relating to such limited partnership interests or the creation or issuance of new limited partnership interests; (v) if a Restricted Party is a limited liability company, any merger or consolidation or the
change, removal, resignation or addition of a managing member or non-member manager (or if there is no managing member, any member) or the 

  

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Sale or Pledge of the membership interest of a managing member or non-member manager (or if there is no managing member, any member) or any profits or
proceeds relating to such membership interest, or the Sale or Pledge of non-managing membership interests or the creation or issuance of new non-managing membership interests; or (vi) if a Restricted Party is a trust or nominee trust, any merger,
consolidation or the Sale or Pledge of the legal or beneficial interest in a Restricted Party or the creation or issuance of new legal or beneficial interests. 
  

(c) Notwithstanding the provisions of Section 5.2.12(a) and (b) hereof, the following transfers shall not be deemed a Transfer, provided that in each
case the transferee complies with the provisions of Section 4.1.22 hereof: (i) a transfer by devise or descent or by operation of law upon the death of a member, partner or shareholder of a Restricted Party; (ii) the Sale or Pledge, in one or a
series of transactions, of not more than forty-nine percent (49%) of the stock in a Restricted Party; provided, however, no such transfers shall result in the change of voting control in the Restricted Party, and as a condition to each such
transfer, Lender shall receive not less than thirty (30) days prior written notice of such proposed transfer, (iii) the Sale or Pledge, in one or a series of transactions, of not more than forty-nine percent (49%) of the limited partnership
interests or non-managing membership interests (as the case may be) in a Restricted Party; provided, however, as a condition to each such transfer, Lender shall receive not less than thirty (30) days prior written notice of such proposed transfer,
(iv) transfers, issuances, pledges and redemptions of stock in Wyndham (and its successors), so long as (A) Wyndham (or any such successor) is (or is controlled by) a Public Company and (B) the surviving entity is primarily involved in, or has a
significant business line involving, the ownership and operation of real estate similar to the Property, (v) the merger or consolidation of Wyndham (or its successors), provided that the surviving entity of such merger or consolidation is (or is
controlled by) (A) a Public Company, and (B) primarily involved in, or has a significant business line involving, the ownership or operation of real estate similar to the Property, (vi) the granting of easements, cross-easements, agreements,
restrictions, reservations and rights in the ordinary course of business for use, access, water and sewer lines, telephone and telegraph lines, electric lines or other utilities or for other similar purposes, provided that no such easements,
agreements, restrictions or rights shall materially impair the utility and/or operation of the Property or Borrower’s ability to repay the Debt as it becomes due, (vii) transfers of direct or indirect interests in Borrower, Principal or
Restricted Party to Affiliates of Wyndham (or its successors) provided that after such transfers Borrower, Principal and Restricted Party are controlled, directly or indirectly, by Wyndham (or its successors), and (viii) pledges of direct and
indirect interests in Borrower and Mortgage Borrower to Lender as collateral for the Loan and the exercise by Lender of its remedies under the Loan Documents. In addition, on a one time basis, Wyndham may merge or consolidate with a public or
private entity in which the surviving entity is not and is not controlled by a Public Company provided that (a) after such merger, Borrower and Principal shall continue to comply with the terms of Section 4.1.22 hereof, (b) such merger or
consolidation is to a Qualified Transferee, (c) the surviving entity is primarily involved in, or has a significant business line involving, the ownership and operation of real estate similar to the Property and (d) the surviving entity complies
with the terms and conditions of the Settlement Agreement and establishes a reserve with Lender in an amount equal to the estimated cost of preparing, implementing and completing the property improvement plan that would be required pursuant to the
Settlement Agreement as a result of such merger or consolidation. In connection with any transfer or merger permitted under this Section 5.2.12, Borrower shall deliver an Additional Insolvency Opinion if, after such transfer or merger, more than 49%
of any direct legal or beneficial interest in Borrower (or in any constituent entity of Borrower that is required to comply with the terms of Section 4.1.22 hereof) is owned by a new or successor entity. Such Additional Insolvency Opinion shall be
reasonably acceptable to (A) Lender, prior to a Securitization or (B) the Rating Agencies, if a Securitization has occurred. Notwithstanding anything to the contrary contained herein, pledges and hypothecations of indirect equity interests in
Borrower shall be permitted provided (I) Wyndham (or its successor) maintains control of, and holds beneficial direct or indirect ownership interests of not less than fifty-one percent (51%) of the stock in each entity comprising Borrower, (II) any
such pledges or hypothecations are in connection with 

  

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that certain Credit Agreement between Wyndham (or its successors) and The Chase Manhattan Bank dated June 30, 1999, as amended or another credit agreement
with an Institutional Lender or a public bond offering to prepay or refinance in full or in part any such credit facility which Institutional Lender or bondholders (or the trustee on their behalf), as applicable shall be making or holding a loan to
Wyndham or its successor or its Affiliates (other than Borrower or Principal), and (III) such pledges and hypothecations of indirect interests in Borrower are subject and subordinate to Borrower’s pledge of the Collateral as security for the
Loan. A foreclosure sale (or transfer in lieu thereof) of any such pledge or hypothecation to The Chase Manhattan Bank, or another Institutional Lender as collateral agent for syndicate lenders or another Institutional Lender, or the bond trustee,
shall be permitted provided (1) Lender is given at least sixty (60) days prior written notice of the proposed foreclosure sale or transfer in lieu thereof; (2) the transferee is a reputable entity or person, creditworthy, with sufficient financial
worth considering any obligations assumed and undertaken with respect to the Loan, as evidenced by financial statements and other information reasonably requested by Lender; (3) the Property at all times shall continue to be managed by a Qualified
Manager, and (4) any and all such entities will comply with all of the requirements set forth in the Note, this Agreement, the Security Instruments and the other Loan Documents. 
  
 (d) Anything herein to the contrary notwithstanding, a Transfer under Section 5.2.12(c)(iv) or (v) which results in a change
of voting control of Wyndham (or its successors) must be to a Qualified Transferee, in which case Lender’s consent thereto will not be required. In the event of a change of voting control of Wyndham (or its successors) by reason of a transfer
under Section 5.2.12(c)(iv) or (v) other than to a Qualified Transferee, Lender’s consent will be required. If Lender does not consent and the proposed transfer is to take place within the Lockout Period, Lender will permit prepayment of the
Loan (notwithstanding that the prepayment will occur during Lockout Period) provided that Borrower pays: (i) all accrued interest through the end of the month in which prepayment occurs, (ii) the entire outstanding principal balance, (iii) the full
Additional Interest (to the extent not previously paid), and (iv) the Spread Maintenance Payment. 
  
 (e) Lender shall not be required to demonstrate any actual impairment of its security or any increased risk of default hereunder in order to declare the
Debt immediately due and payable upon a Transfer without Lender’s consent to the extent required hereunder. This provision shall apply to every Transfer regardless of whether voluntary or not, or whether or not Lender has consented to any
previous Transfer. Notwithstanding anything to the contrary contained in this Section 5.2.12, (a) no transfer (whether or not such transfer shall constitute a Transfer) shall be made to any Prohibited Person and (b) in the event any transfer
(whether or not such transfer shall constitute a Transfer) results in any Person owning in excess of forty-nine percent (49%) of the ownership interest in a Restricted Party, Borrower shall, prior to such transfer, deliver an updated Insolvency
Opinion to Lender, which opinion shall be in form, scope and substance reasonably acceptable in all respects to Lender and the Rating Agencies. 
  
 (f) Notwithstanding anything to the contrary contained in this Section 5.2.12, Lender’s consent shall not be required for the financing and/or
leasing of personal property, including, without limitation, furniture, fixtures and equipment owned or to be purchased by Borrower or Mortgage Borrower that is used in connection with the operation of the Property (“Equipment”),
provided Lender has received prior written notification of such Borrower’s intent to finance and/or lease such Equipment, and provided, further, that (i) any such financing and/or leasing is subject to commercially prudent terms and conditions
and at a market rate of interest, (ii) the Equipment financed and/or leased is readily replaceable without material interference or interruption to the operation of the Property as required pursuant to the provisions of this Agreement and the
Mortgage Loan Documents, (iii) the annual aggregate payments (including principal and interest) amount of such financing and/or leasing for Equipment located on or used in connection with each Property is at all times less than the amount set forth
on Schedule VII attached hereto and made a part hereof for each the Property (“Permitted FF&E Financing”), (iv) the 

  

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documentation for such financing and/or any material leases entered into after the date hereof shall, among other things, provide that Lender shall be given
written notice of a default thereunder and Lender shall be provided with a reasonable opportunity to cure such defaults, and (v) the financing and/or leasing does not create a lien on the Property other than the Equipment financed. 
  
 5.2.13 INTENTIONALLY OMITTED. 
  
 5.2.14 INTENTIONALLY OMITTED. 
  
 5.2.15 Misapplication of Funds. 
  
 Borrower shall not, and shall cause Mortgage Borrower not to,
distribute any Property revenues or loss proceeds in violation of the provisions of the Loan Documents, misappropriate any Security Deposit or portion thereof, or make any Distributions in violation of the provisions of the Loan Documents.

  

	 	VI.	INSURANCE; CASUALTY; CONDEMNATION; REQUIRED REPAIRS 

  
 Section 6.1 Insurance 
  
 (a) Borrower, at its sole cost and expense, shall cause to be obtained and maintained at least the following coverages for the Property during the entire
term of the Loan, for the mutual benefit of Mortgage Lender, Borrower, Mortgage Borrower, Lender, and the Property: 
  
 (i) comprehensive all risk insurance on the Improvements and the Personal Property, in each case (ii) in an amount equal to 100% of the
“Full Replacement Cost,” which for purposes of this Agreement shall mean actual replacement value (exclusive of costs of excavations, foundations, underground utilities and footings) with a waiver of depreciation, but the amount shall in
no event be less than the outstanding principal balance of the Note allocable to the Property; (iii) containing an agreed amount endorsement with respect to the Improvements and Personal Property waiving all co-insurance provisions; (iv) providing
for no deductible in excess of $100,000; and (v) providing coverage for contingent liability from Operation of Building Laws, Demolition Costs and Increased Cost of Construction Endorsements together with an “Ordinance or Law Coverage” or
“Enforcement” endorsement if any of the Improvements or the use of the Property shall at any time constitute legal nonconforming structures or uses. The Full Replacement Cost shall be redetermined from time to time (but not more frequently
than once in any twenty (24) calendar months) at the request of Lender by an appraiser or contractor designated and paid by Borrower and approved by Lender, or by an engineer or appraiser in the regular employ of the insurer. After the first
appraisal, additional appraisals may be based on construction cost indices customarily employed in the trade. No omission on the part of Lender to request any such ascertainment shall relieve Borrower of any of its obligations under this Subsection.
Notwithstanding clause (iv) of this Section 6.1(a)(i) to the contrary, (1) with respect to comprehensive all risk insurance required by this Section 6.1(a)(i), Borrower shall be permitted to maintain a deductible of no more than $500,000.00 (the
“Maximum Deductible”) provided Borrower delivers to Lender a Letter of Credit in an amount equal to the difference between the Maximum Deductible and $100,000.00, which Letter of Credit shall be held by Lender as additional
collateral for the Loan and Borrower shall have no right to request that Lender draw on the Letter of Credit, (2) with respect to windstorm coverage, Borrower shall be permitted to maintain a deductible equal to 2% of the coverage provided by the
Policy for the Property, and (3) with respect to earthquake coverage Borrower shall be permitted to maintain a deductible equal to $1,000,000. 
  

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 (ii) commercial general liability insurance against claims for personal injury, bodily
injury, death or property damage occurring upon, in or about the Property, including “Dram Shop” or other liquor liability coverage if alcoholic beverages are sold from or may be consumed at the Property, such insurance (A) to be on the
so-called “occurrence” form with a combined single limit of not less than $2,000,000 and a per occurrence limit of not less than $1,000,000 (and if in a blanket policy, containing an “Aggregate Per Location” endorsement); (B) to
continue at not less than the aforesaid limit until required to be changed by Lender in writing by reason of changed economic conditions making such protection inadequate; and (C) to cover at least the following hazards: (1) premises and operations;
(2) products and completed operations on an “if any” basis; (3) independent contractors; (4) blanket contractual liability for all legal contracts; and (5) contractual liability covering the indemnities contained in Article 10 of the
Security Instruments that comprise the Mortgage Loan Documents to the extent the same is available; 
  
 (iii) business interruption/loss of rents insurance (A) with loss payable to Lender subject, however, to the rights of Mortgage Lender;
(B) covering all risks required to be covered by the insurance provided for in Section 6.1(a)(i); (C) in an amount equal to 100% of the projected gross earnings from the Property (on an actual loss sustained basis) for a period of eighteen (18)
months. The amount of such loss of rents insurance shall be determined prior to the date hereof and at least once each year thereafter based on the greatest of: (x) Borrower’s reasonable estimate of the gross revenue from the Property (y) the
estimate of gross revenue set forth in the Annual Budget; and (z) the highest gross income received during the term of the Note for any full calendar year prior to the date the amount of such insurance is being determined, for the succeeding
twenty-four month period; and (D) containing an extended period of indemnity endorsement which provides that after the physical loss to the Improvements and the Personal Property has been repaired, the continued loss of income will be insured until
such income either returns to the same level it was at prior to the loss, or the expiration of eighteen (18) months from the date that the Property is repaired or replaced and operations are resumed, whichever first occurs, and notwithstanding that
the policy may expire prior to the end of such period; and (E) containing an extended period of indemnity endorsement which provides that after the physical loss to the Improvements and the Personal Property has been repaired, the continued loss of
income will be insured until such income returns to the same level it was prior to the loss, or the expiration of eighteen (18) months from the date of the loss, whichever first occurs, and notwithstanding that the policy may expire prior to the end
of such period. Notwithstanding the foregoing, following the payment of all sums that are then due and payable under the Note, this Agreement and the other applicable Loan Documents, Lender shall disburse to Borrower any remaining proceeds from
business interruption insurance obtained under this Section 6.1(a)(iii). All insurance proceeds payable to Lender pursuant to this Section 6.1(a)(iii) shall be held by Lender and shall be applied to the obligations secured hereunder from time to
time due and payable hereunder and under Note and of this Agreement; provided, however, that nothing herein contained shall be deemed to relieve Borrower of its Obligations secured hereunder on the respective dates of payment provided for in this
Agreement except to the extent such amounts are actually paid out of the proceeds of such loss of rents insurance provided, however, any sums not applied by Lender pursuant to this subsection 6.1(a)(iii) shall be returned to Borrower 
  
 (iv) at all times during which structural construction,
repairs or alterations are being made with respect to the Improvements (A) owner’s contingent or protective liability insurance covering claims not covered by or under the terms or provisions of the above mentioned commercial general liability
insurance policy; and (B) the insurance provided for in Section 6.1(a)(i) written in a so-called builder’s risk completed value form (1) on a non-reporting basis, (2) against all risks insured against pursuant to Section 6.l(a)(i), (3)
including permission to 

  

 78 

 
occupy the Property, and (4) with an agreed amount endorsement waiving co-insurance provisions; 
  
 (v) workers’ compensation, subject to the statutory
limits of the Commonwealth of Puerto Rico, and employer’s liability insurance with a limit of at least $1,000,000 per accident and per disease per employee, and $1,000,000 for disease aggregate in respect of any work or operations on or about
the Property, or in connection with the Property or its operation (if applicable); 
  
 (vi) comprehensive boiler and machinery insurance, if applicable, in amounts as shall be reasonably required by Lender on terms consistent
with the insurance required under Section 6.1(a)(i) hereof; 
  
 (vii) if any portion of the Improvements is at any time located in an area identified by the Secretary of Housing and Urban Development or any successor thereto as an area having special flood hazards pursuant to the
National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act of 1994, as each may be amended, or any successor law (the “Flood Insurance Acts”), flood hazard insurance in
an amount equal to the lesser of (A) the principal balance of the Loan, and (B) the maximum limit of coverage available for the Property under the Flood Insurance Acts; 
  
 (viii) earthquake, sinkhole and mine subsidence insurance, if required by Lender in amounts equal to one
time (1x) the probable maximum loss of the Property as determined by Lender in its sole discretion and in form and substance satisfactory to Lender, provided that the insurance pursuant to this Section 6.1(a)(viii) hereof shall be on terms
consistent with the all risk insurance policy required under Section 6.1(a)(i) hereof; 
  
 (ix) umbrella liability insurance in an amount not less than ONE HUNDRED MILLION FIFTY MILLION AND 00/100 DOLLARS ($150,000,000.00) per
occurrence on terms consistent with the commercial general liability insurance policy required under Section (ii) above; 
  
 (x) a blanket fidelity bond and errors and omissions insurance coverage insuring against losses resulting from dishonest or fraudulent
acts committed by (A) Borrower’s and Mortgage Borrower’s personnel; (B) any employees of outside firms that provide appraisal, legal, data processing or other services for Borrower or Mortgage Borrower or (C) temporary contract employees
or student interns; 
  
 (xi) terrorism insurance
covering loss or damage incurred as a result of an act of terrorism (including bio-terrorism, if commercially available ) or similar acts of sabotage, in an amount of not less than an amount equal to the full insurable value of the Improvements and
the Personal Property; 
  
 (xii) upon sixty (60)
days prior written notice, such other reasonable insurance and in such reasonable amounts as Lender from time to time may reasonably request against such other insurable hazards which at the time are commonly insured against for property similar to
the Property located in or around the region in which the Property is located; 
  
 (xiii) to the extent not covered in clauses (i) through (xii) above, such other insurance as may from time to time be reasonably required
by Lender in order to protect the Property and Lender’s interests in the Collateral; and 
  

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 (xiv) to the extent not already required by Lender in accordance with the foregoing, such
Borrower shall cause Mortgage Borrower to obtain any additional coverage required by Mortgage Lender in accordance with the Mortgage Loan Documents. 
  
 All insurance provided for in Section 6.1 (a) hereof shall be obtained under valid and enforceable policies (the
“Policies” or in the singular, the “Policy”), in such forms and, from time to time after the date hereof, in such amounts as may be reasonably satisfactory to Lender, issued by financially sound and responsible
insurance companies authorized to do business in the Commonwealth of Puerto Rico with a claims paying ability rated “A-” or better by S&P and A3 or better by Moody’s and approved by Lender. The insurance required pursuant to
Section 6.1(a) above may be with a syndicate of insurers through which at least (A)(i) 40% of the coverage is provided by carriers having a claims paying ability rating by S&P not lower than AA-, (ii) 85% of the coverage is provided by carriers
having a claims paying ability rating by S&P not lower than A- and (iii) 100% of the coverage is provided by carriers having a claims paying ability rating by S&P not lower than BBB- and (B)(i) 60% of the coverage is provided by carriers
having a claims paying ability rating by Moody’s not lower than A2 and (ii) 100% of the coverage is provided by carriers having a claims paying ability rating by Moody’s not lower than Baa3 (each such insurer shall be referred to below as
a “Qualified Insurer”). For purposes of the immediately preceding sentence, when an insurance company is rated only by S&P or only by Moody’s, then only such rating shall be applicable. Not less than thirty (30) days prior to the
expiration dates of the Policies theretofore furnished to Lender pursuant to Section 6.1(a), Borrower shall deliver certified copies of the Policies or certificates marked “premium paid” or accompanied by evidence satisfactory to Lender of
payment of the premiums due thereunder (the “Insurance Premiums”), provided, however, that in the case of renewal Policies, Borrower may furnish Lender with binders therefor to be followed by certificates of insurance. If
Borrower’s insurers or reinsurance carriers fail to provide or maintain such ratings, Borrower may satisfy the ratings requirement of this Section by providing to Lender a “cut-through” endorsement in form and substance approved by
Lender, which approval shall not be unreasonably withheld, conditioned or delayed, issued by an insurer with at least an “A+” rating by S&P. 
  
 (b) Except to the extent required pursuant to Section 6.1(a) hereof, Borrower shall not obtain any umbrella or blanket liability or casualty Policy,
unless such Policy shall specifically allocate to each Property the amount of coverage required thereunder and shall otherwise provide the same protection as would a separate Policy insuring only the Property in compliance with the terms of Section
6.1(a) hereof. 
  
 (c) All Policies provided for or contemplated
by Section 6.1(a) hereof,, except for the Policy referenced in Section 6.1(a)(v), shall name Mortgage Borrower as the insured and Borrower, Lender and Mortgage Lender as additional insured, as their respective interests may appear, and in the case
of property damage, boiler and machinery, and flood insurance, shall contain a so-called New York standard non-contributing mortgagee clause in favor of Lender providing that the loss thereunder shall be payable to Lender. 
  
 (d) All Policies provided for in Section 6.1(a) hereof, shall contain clauses
or endorsements to the effect that: 
  
 (i) no
act or negligence of Borrower, Mortgage Borrower or anyone acting for Borrower or Mortgage Borrower, or of any tenant under any Lease or other occupant, or failure to comply with the provisions of any Policy which might otherwise result in a
forfeiture of the insurance or any part thereof, shall in any way affect the validity or enforceability of the insurance insofar as Lender is concerned; 
  

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 (ii) the Policy shall not be materially changed (other than to increase the coverage
provided thereby) or cancelled without at least 30 days’ written notice to Lender and any other party named therein as an additional insured; and 
  
 (iii) each Policy shall provide that the issuers thereof shall give written notice to Lender if the Policy has not been renewed thirty
(30) days prior to its expiration; and 
  
 (iv)
Lender shall not be liable for any Insurance Premiums thereon or subject to any assessments thereunder. 
  
 (e) Upon written request by Lender, Borrower shall furnish to Lender, on or before thirty (30) days after the close of each of Borrower’s fiscal
years, an Officer’s Certificate certifying of the amounts of insurance maintained in compliance herewith, of the risks covered by such insurance and of the insurance company or companies which carry such insurance and, if requested by Lender,
verification of the adequacy of such insurance by an independent insurance broker or appraiser acceptable to Lender. 
  
 (f) If at any time Lender is not in receipt of written evidence that all insurance required hereunder is in full force and effect, Lender shall have the
right to take such action as Lender deems necessary to protect its interest in the Property and the Collateral, including, without limitation, the obtaining of such insurance coverage as Lender in its sole discretion deems appropriate after five (5)
Business Days’ written notice to Borrower if prior to the date upon which any such coverage will lapse or at any time Lender deems necessary (regardless of prior written notice to Borrower) to avoid a lapse of such coverage. All expenses
incurred by Lender in connection with such action or in obtaining such insurance and keeping it in effect shall be paid by Borrower to Lender upon demand and until paid shall be secured by the Security Instruments and shall bear interest at the
Default Rate. 
  
 (g) In the event of a foreclosure of any of the
Security Instruments, or other transfer of title to any Property in extinguishment in whole or in part of the Debt all right, title and interest of Borrower and/or Mortgage Borrower in and to such policies then in force concerning the Property
(unless such policies are blanket policies insuring real property in addition to the Property) and all proceeds payable thereunder shall thereupon vest in the purchaser at such foreclosure, Mortgage Lender or Lender or other transferee in the event
of such other transfer of title and such party shall notify the insurer thereof. 
  
 Section 6.2 Casualty 
  
 If
the Property shall be damaged or destroyed, in whole or in part, by fire or other casualty (a “Casualty”), Borrower shall cause prompt notice of such damage to be given to Lender and Borrower shall, or shall cause Mortgage Borrower
to, promptly commence and diligently prosecute the completion of the Restoration of the Property in accordance with Section 6.4. Borrower shall pay, or cause Mortgage Borrower to pay, all costs of such Restoration whether or not such costs are
covered by insurance. Lender may, but shall not be obligated to, make proof of loss if not made timely (in accordance with industry standards) by Borrower. The rights of Lender under this Section are subject and subordinate to the rights of Mortgage
Lender under the Mortgage Loan Documents. 
  
 Section 6.3
Condemnation 
  
 Borrower shall cause prompt notice of the
actual or threatened commencement of any proceeding for the Condemnation of all or any part of the Property to be given to Lender and shall deliver to Lender copies of any and all papers served in connection with such proceedings. Lender may
participate in any such proceedings, and such Borrower shall from time to time deliver to Lender all instruments requested by it to permit such participation. Such Borrower shall, at its expense, and shall cause Mortgage 

  

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Borrower to, diligently prosecute any such proceedings, and shall consult with Lender, its attorneys and experts, and cooperate with them in the carrying on
or defense of any such proceedings. Notwithstanding any taking by any public or quasi-public authority through Condemnation or otherwise (including, but not limited to, any transfer made in lieu of or in anticipation of the exercise of such
takings), Borrower shall continue to pay the Debt at the time and in the manner provided for its payment in the Note and in this Agreement and the Debt shall not be reduced until any Award shall have been actually received and applied by Lender,
after the deduction of costs of collection, to the reduction or discharge of the Debt in accordance with the terms of this Agreement. Lender shall not be limited to the interest paid on the Award by the condemning authority but shall be entitled to
receive out of the Award interest at the rate or rates provided herein or in the Note. If the Property or any portion thereof is taken by a condemning authority, Borrower shall, and shall cause Mortgage Borrower to, promptly commence and diligently
prosecute the Restoration of the Property and otherwise comply with the provisions of Section 6.4. If the Property is sold, through foreclosure or otherwise, prior to the receipt by Lender of the Award, Lender shall have the right, whether or not a
deficiency judgment on the Note shall have been sought, recovered or denied, to receive the Award, or a portion thereof sufficient to pay the Debt. Notwithstanding the foregoing, or any other provision herein to the contrary, Borrower’s
obligation to commence and pursue Restoration of the Property shall not be deemed to obligate Borrower to acquire any additional land to substitute for any portion of the Property which may be taken by Condemnation. The rights of Lender under this
Section are subject and subordinate to the rights of Mortgage Lender under the Mortgage Loan Documents. 
  
 Section 6.4 Restoration 
  
 Subject to the rights of Mortgage Lender under the Mortgage Loan Documents and the provisions thereunder for Restoration, the following provisions shall
apply in connection with the Restoration of the Property: 
  
 (a)
The term “Net Proceeds” for purposes of this Section 6.4 shall mean: (i) the net amount of all insurance proceeds received pursuant to Section 6.1 (a)(i), (iv), (vi), (vii) and (viii) as a result of such damage or destruction, after
deduction of its reasonable costs and expenses (including, but not limited to, reasonable counsel fees), if any, in collecting same (“Insurance Proceeds”), or (ii) the net amount of the Award, after deduction of reasonable costs and
expenses (including, but not limited to, reasonable counsel fees), if any, in collecting same (“Condemnation Proceeds”), whichever the case may be, plus (in the case of (i) and (ii) above) any interest or other income earned on the
investment of the Insurance Proceeds or Condemnation Proceeds pursuant to the terms hereof. 
  
 (b) All Net Proceeds not required or permitted by Mortgage Lender under the Mortgage Loan Documents to be made available for the Restoration, or not required or permitted by Mortgage Lender to be paid to Mortgage
Lender, shall be paid to, and applied by, Lender toward the payment of either (or both) (1) any then outstanding portion of the Debt or (2) the principal balance of the Debt whether or not then due and payable, in either case in such order, priority
and proportions as Lender in its sole discretion shall deem proper, or, at the discretion of Lender, the same may be paid, either in whole or in part, to Borrower for such purposes as Lender shall approve, in its discretion. If Lender shall receive
and retain Net Proceeds, the Lien of the Security Instruments shall be reduced only by the amount thereof received and retained by Lender and actually applied by Lender in reduction of the Debt. The rights of Lender to Net Proceeds in respect of the
Property are subject and subordinate to the rights of Mortgage Lender under the Mortgage Loan Documents. 
  
 (c) Each of Borrower and Mortgage Borrower shall deliver to Lender copies of all written correspondence delivered to and received from Mortgage Lender
that relate to a Casualty, Condemnation and/or Restoration of the Property. 
  

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	 	VII.	RESERVE FUNDS 

  
 Section 7.1 Required Repair Funds. 
  
 7.1.1 Deposits. 
  
 Borrower shall cause to be performed the repairs at the Property, as more particularly set forth on Schedule III to the Mortgage Loan Documents (such
repairs hereinafter referred to as “Required Repairs”). Borrower shall cause to completed the Required Repairs on or before the required deadline for each repair as set forth on such Schedule III, subject to such extensions as
required due to Force Majeure. If the Required Repairs are not completed on or before the required deadline for each repair, subject to such extensions as required due to Force Majeure, Borrower shall deposit with Lender, immediately upon request by
Lender, to the extent not already deposited with Mortgage Lender, an amount for the Property equal to 125% of the cost of any remaining or incomplete Required Repair for the Property (collectively, the “Required Deposit”). Amounts
so deposited with Lender shall be held by Lender and shall hereinafter be referred to as Borrower’s “Required Repair Fund”. Notwithstanding the foregoing, in lieu of depositing the Required Deposit, Borrower shall have the
option of delivering to Lender a Letter of Credit in the amount of the Required Deposit. It shall be an Event of Default under this Agreement if (a) Borrower or Mortgage Borrower does not complete the Required Repairs at the Property by the required
deadline for each repair as set forth on such Schedule III, subject to such extensions as required due to Force Majeure or (b) Borrower does not satisfy each condition contained in Section 7.1.2 hereof in all material respects. Upon the occurrence
of such an Event of Default, Lender, at its option and subject to the rights of Mortgage Lender, may withdraw all Required Repair Funds from the Required Repair Account and Lender may apply such funds either to completion of the Required Repairs at
the Property or toward payment of the Debt in such order, proportion and priority as Lender may determine in its sole discretion. Lender’s right to withdraw and apply Required Repair Funds shall be in addition to all other rights and remedies
provided to Lender under this Agreement and the other Loan Documents. Notwithstanding the foregoing, in lieu of depositing the Required Repair Deposit in the Required Repair Fund, Borrower shall have the option of delivering to Lender a Letter of
Credit in an amount equal to the Required Repair Deposit. Lender’s rights hereunder shall be in addition to all other rights and remedies provided to Lender under this Agreement and the other Loan Documents. Borrower shall notify Lender of any
request for disbursement from the repair funds under the Mortgage Loan Documents simultaneously with such disbursement request. All rights of Lender hereunder shall be subject to the rights of Mortgage Lender under Mortgage Loan Documents. If, and
for so long as, Borrower or Mortgage Borrower has deposited funds in the Required Repair Fund under and in satisfaction of the requirements of the Mortgage Loan Documents, and Mortgage Lender has applied such funds to pay for the completion of the
Required Repairs, as and when due from time to time, Borrower’s obligation to fund the Required Repair Fund hereunder shall be deemed satisfied. If at any time, for any reason or no reason, Mortgage Lender waives the requirements set forth in
the Mortgage Loan Documents with respect to the Required Repair Fund, or the Mortgage Loan is satisfied, Borrower shall immediately be obligated to establish and maintain a Required Repair Fund as provided in this Section for the benefit of Lender.

  
 7.1.2 Release of Required Repair Funds. 
  
 Provided Borrower has deposited funds in the Required Repair Account, Lender
shall disburse to Borrower the Required Repair Funds from the Required Repair Account from time to time upon satisfaction by Borrower of each of the following conditions: (a) Borrower shall submit a written request for payment to Lender at least
fifteen (15) days prior to the date on which Borrower requests such payment be made and specifies the Required Repairs to be paid, (b) on the date such request is received by Lender and on the date such payment is to be made, no Event of Default
shall exist and remain uncured, (c) Lender shall have received an Officer’s Certificate (i) stating that all Required Repairs at the 

  

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applicable Property to be funded by the requested disbursement have been completed in good and workmanlike manner (or any materials to be reimbursed by the
requested disbursement are on site at the Property or in a bonded warehouse reasonably acceptable to Lender and are properly secured or have been installed in the Property) and in accordance with all Legal Requirements and Environmental Laws, such
certificate to be accompanied by a copy of any license, permit or other approval by any Governmental Authority required to commence and/or complete such Required Repairs, (ii) identifying each Person that supplied materials, labor or other services,
including, without limitation, design, construction management and project supervision, in connection with the Required Repairs performed at the Property with respect to the reimbursement to be funded by the requested disbursement, and (iii) stating
that each such Person has been paid in full all sums then due upon such disbursement, such Officer’s Certificate to be accompanied by lien waivers from each Person receiving $50,000 or more in payment or other evidence of payment reasonably
satisfactory to Lender, (d) at Lender’s option, a title search for the Property indicating that the Property is free from all Liens, claims and other encumbrances not previously approved by Lender, and (e) Lender shall have received such other
evidence as Lender shall reasonably request that the Required Repairs at the Property to be funded by the requested disbursement (or any materials to be reimbursed by the requested disbursement are on site at the Property or in a bonded warehouse
reasonably acceptable to Lender and are properly secured or have been installed in the Property) have been completed and are paid for upon such disbursement to Borrower. Lender shall not be required to make disbursements from the Required Repair
Account with respect to any Property unless such requested disbursement is in an amount greater than $25,000 (or a lesser amount if the total amount in the Required Repair Account is less than $25,000, in which case only one disbursement of the
amount remaining in the account shall be made). Provided no Event of Default has occurred and is continuing, any funds remaining in the Required Repairs Account after completion of all Required Repairs and the delivery of evidence thereof in
accordance with the terms and conditions of this Agreement will be disbursed to Borrower. In the event Borrower delivers a Letter of Credit to Lender in lieu of depositing cash into the Required Repair Account, provided Borrower delivers evidence
reasonably acceptable to Lender that the applicable Required Repairs are completed in a good and workmanlike manner and such Required Repairs have been paid for in full, Borrower shall be permitted to deliver a replacement Letter of Credit to Lender
in an amount equal to 125% of the then remaining outstanding Required Repairs. Anything in this subsection 7.1.2 to the contrary notwithstanding, the rights and obligations hereunder shall be applicable only if, as and when the Required Repair Fund
is being maintained for Lender’s benefit. 
  
 Section 7.2
Tax and Insurance Escrow Fund 
  
 7.2.1 Deposits to the
Tax and Insurance Escrow Fund 
  
 Borrower shall pay to Lender
on each Payment Date (a) one-twelfth of the Taxes (the “Monthly Tax Deposit”) that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes
at least thirty (30) days prior to their respective due dates, and (b) one-twelfth of the Insurance Premiums (the “Monthly Insurance Premium Deposit”) that Lender estimates will be payable for the renewal of the coverage afforded by
the Policies, with respect to, and allocable to the Property upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to the expiration of the Policies (said
amounts in (a) and (b) above hereinafter called the “Tax and Insurance Escrow Fund”). The Tax and Insurance Escrow Fund and the payments of interest or principal or both, payable pursuant to the Note and this Agreement, shall be
added together and shall be paid as an aggregate sum by Borrower to Lender. Lender will apply the Tax and Insurance Escrow Fund to payments of Taxes and Insurance Premiums required to be made by Borrower pursuant to Section 5.1.2 and 6.1 hereof. In
making any payment relating to the Tax and Insurance Escrow Fund, Lender may do so according to any bill, statement or estimate procured from the appropriate public office (with respect to Taxes) or insurer 

  

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or agent (with respect to Insurance Premiums), without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax,
assessment, sale, forfeiture, tax Lien or title or claim thereof, provided, however, Borrower shall have the right to contest the same in good faith and in accordance with the terms hereof. If the amount of the Tax and Insurance Escrow Fund shall
exceed the amounts due for Taxes and Insurance Premiums pursuant to Section 5.1.2 and 6.1 hereof, Lender shall return any excess to Borrower. Any amount remaining in the Tax and Insurance Escrow Fund after the Debt has been paid in full shall be
returned to Borrower. In allocating such excess, Lender may deal with the Person shown on the records of Lender to be the owners of the Property. If at any time Lender reasonably determines that the Tax and Insurance Escrow Fund is not or will not
be sufficient to pay Taxes and Insurance Premiums by the dates set forth in (a) and (b) above, Lender shall notify Borrower of such determination and Borrower shall increase its monthly payments to Lender by the amount that Lender estimates is
sufficient to make up the deficiency at least thirty (30) days prior to delinquency of the Taxes and/or thirty (30) days prior to expiration of the Policies, as the case may be. Notwithstanding the foregoing, in lieu of making the Monthly Insurance
Premium Deposit, Borrower shall have the option of (i) delivering to Lender a Letter of Credit in an amount equal to the estimated annual Insurance Premium, as the same is calculated each year during the term of the Loan or (ii) providing evidence
reasonably satisfactory to Lender that the liability or casualty Policy maintained) by Borrower or Mortgage Borrower covering the Property shall constitute an approved blanket or umbrella Policy pursuant to terms hereof along with evidence
reasonably acceptable to Lender that the Insurance Premiums for such approved blanket Policy or umbrella Policy for the immediately succeeding year has been paid in full. Amounts deposited with Lender in the Tax and Insurance Escrow Fund shall be
held by Lender in an interest-bearing account and all earnings and interest on such amounts shall be added to and become part of the Tax and Insurance Escrow Fund. All rights of Lender hereunder shall be subject to the rights of Mortgage Lender
under the Mortgage Loan Documents. If, and for so long as, Borrower or Mortgage Borrower have deposited funds in the Tax and Insurance Escrow Fund in satisfaction of the requirements of the Mortgage Loan Documents, and Mortgage Lender has applied
such funds in timely payment of the Taxes and Insurance Obligations, Borrower’s obligation to fund the Tax and Insurance Escrow Fund hereunder shall be deemed satisfied. 
  
 7.2.2 Withdrawals From the Tax Account and the Insurance Premium Account. 
  
 Lender shall withdraw funds from the Tax Account to pay Taxes on or before
the date Taxes are due and payable. Lender shall have the right to withdraw funds from the Insurance Premium Account to pay Insurance Premiums on or before the date Insurance Premiums are due and payable. Anything in this Section 7.2.2 to the
contrary notwithstanding, the rights and obligations hereunder shall be applicable only if, as and when the Tax and Insurance Escrow Fund is being maintained for Lender’s benefit. 
  
 Section 7.3 Replacements and Replacement Reserve. 
  
 7.3.1 Replacement Reserve Fund 
  
 With respect to the Property, on the Closing Date, Borrower shall cause Mortgage Borrower to deposit $3,200,000.00. In
addition to the foregoing, in the event that the budgeted amount for Replacements at the casino (based upon the Casino Budget) for a five (5) year period commencing on the Closing Date (such amount the “Budgeted Casino Replacements”)
exceeds $4,600,000.00 (excluding any Excess (defined below) carried forward from prior years), Borrower shall cause Mortgage Borrower to, within five (5) days of delivery of the Casino Budget, deposit with Lender an additional amount equal to the
difference between the Budgeted Casino Replacements and $4,600,000.00. Borrower shall cause to be deposited the Replacement Reserve Deposit on each Payment Date during the term of the Loan for replacements and repairs to be made to the Property
(collectively the “Replacements”). Amounts so deposited shall hereinafter be referred to as the “Replacement Reserve Fund” and the account in which 

  

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such amounts are held shall hereinafter be referred to as the “Replacement Reserve Account”. Borrower covenants and agrees to cause Lender
to be provided evidence reasonably acceptable to Lender, within thirty (30) days after the start of each calendar month, of the Actual Amount for the Property for the immediately preceding calendar month period. (For example, with respect to the
Replacement Reserve Deposit payable on the Payment Date in June, Borrower shall provide Lender evidence of the Actual Amount for the month of April (the Subject Month) by May 30). Notwithstanding the foregoing, in lieu of depositing the Replacement
Reserve Deposit, Borrower may cause to be delivered to Lender one (1) or more Letters of Credit each in the amount of the required Replacement Reserve Deposit. In the event the Actual Amount spent by Mortgage Borrower for Replacements to the
Property in any given Subject Month exceeds the product of (a) the applicable Gross Income From Operations for the Property in such Subject Month and (b) the FF&E Factor (such amount, the “Excess”), Borrower or Mortgage Borrower
may request payment or reimbursement from the Replacement Reserve Account (or may request a reduction in the amount of any Letter of Credit delivered to Lender in lieu of a cash deposit to the Replacement Reserve Account) for the Excess, up to the
amount of funds or Letters of Credit on deposit in the Replacement Reserve Account, in accordance with Section 7.3.2 provided, however, at no time shall Borrower or Mortgage Borrower be entitled to receive funds (or reduce Letters of Credit) in
excess of the Actual Amount for the applicable Subject Month. To the extent the Replacement Reserve Account has no funds or Letters of Credit on deposit or is less than the amount of the Excess, Borrower and Mortgage Borrower will be permitted to
carry forward the amount of the Excess that was not paid or reimbursed from the Replacement Reserve Account (such amount, the “Shortfall”) as a reduction in subsequent month(s) calculation of the Replacement Reserve Deposit for the
Property until the Shortfall has been exhausted. In other words, Borrower or Mortgage Borrower shall be reimbursed for its Replacement expenditures to the Property first by reduction of the current month’s Replacement Reserve Deposit, second
from any funds (and by reductions in the amount of Letters of Credit delivered to Lender in lieu of cash deposits) on deposit in the Replacement Reserve Account (using first the funds and then reductions in the Letters of Credit), and third as an
ongoing credit toward future months’ required Replacement Reserve Deposits until Mortgage Borrower or Borrower has been fully reimbursed for all expenditures for Replacements from the beginning of the first Subject Month to date. All rights of
Lender hereunder shall be subject to the rights of Mortgage Lender under the Mortgage Loan Documents. If, and for so long as, Borrower or Mortgage Borrower have deposited funds in the Replacement Reserve Fund under and in satisfaction of the
requirements of Mortgage Loan Documents, and Mortgage Lender has applied such funds for Replacements as and when due from time to time, Borrower’s obligation to fund the Replacement Reserve Fund hereunder shall be deemed satisfied. If at any
time, for any reason or no reason, Mortgage Lender waives the requirements set forth in the Mortgage Loan Documents with respect to the Replacement Reserve Fund, or the Mortgage Loan is satisfied, Borrower shall immediately be obligated to establish
and maintain a Replacement Reserve Fund as provided in this Section for the benefit of Lender. 
  
 7.3.2 Disbursements from Replacement Reserve Account 
  
 (a) Provided that (i) the Replacement Reserve contains funds or a Letter of Credit and (ii) no Event of Default shall have occurred and be continuing, Lender shall make disbursements from the Replacement Reserve
Account (or reduce the amount of Letters of Credit delivered to Lender in lieu of cash deposits to the Replacement Reserve Account) to pay or reimburse Borrower only for the costs of the Replacements made to the Property (with any funds on deposit
being utilized prior to the reduction of any Letters of Credit). Lender shall not be obligated to make disbursements from the Replacement Reserve Account to pay or reimburse Mortgage Borrower for the costs of routine maintenance to the Property, for
replacement of inventory or for costs which are to be reimbursed from the Required Repairs Fund or are in excess of the funds deposited in the Replacement Reserve Account allocable to the Property. 
  

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 (b) Lender shall, upon written request from Borrower and satisfaction of the requirements set forth in
this Section 7.3.2, disburse to Borrower within fifteen (15) Business Days of request amounts from the Replacement Reserve Account necessary to pay or reimburse Borrower for the actual approved costs and Replacements upon completion of such
Replacements (or, upon partial completion in the case of Replacements made pursuant to Section 7.3.2(e)) as reasonably determined by Lender. In no event shall Lender be obligated to disburse funds from the Replacement Reserve Account if a Default or
an Event of Default has occurred and is continuing. 
  
 (c) Each
request for disbursement from the Replacement Reserve Account shall be in a form reasonably specified or approved by Lender and shall specify (i) the specific Replacements for which the disbursement is requested, (ii) the quantity and price of each
item purchased or to be purchased, if the Replacement includes the purchase or replacement of specific items, (iii) the price of all materials (grouped by type or category) used in any Replacement other than the purchase or replacement of specific
items, and (iv) the cost of all contracted labor or other services (including, without limitation, design, construction management and project supervision) applicable to each Replacement for which the disbursement is requested. With each request
Borrower shall deliver an Officer’s Certificate certifying that all Replacements subject to prior requests, have been made in accordance with all applicable Legal Requirements of any Governmental Authority having jurisdiction over the Property
to which the Replacements are being provided. Each request for disbursement shall include copies of invoices for all items or materials purchased or to be purchased and all contracted labor or services provided or to be provided and each request
shall include waivers of lien and evidence of payment from each contractor, as applicable, previously receiving payment out of any prior such request provided, however, lien waivers shall only be required if the payments to such contractor is equal
to or exceeds $50,000.00. Except as provided in Section 7.3.2(e), each request for disbursement from the Replacement Reserve Account shall be made only after completion of the Replacement for which disbursement is requested. Borrower shall provide
Lender evidence of completion or partial completion, as applicable, satisfactory to Lender in its reasonable judgment. 
  
 (d) Borrower shall pay all invoices in connection with the Replacements with respect to each request for disbursement (i) prior to submitting such request
for disbursement from the Replacement Reserve Account, (ii) with the funds received from the applicable disbursement from the Replacement Reserve Account or, (iii) at the request of Borrower, Lender will issue joint checks, payable to Borrower and
the contractor, supplier, materialman, mechanic, subcontractor or other party to whom payment is due in connection with a Replacement. In the case of payments made by joint check, Lender may require a waiver of lien from each Person receiving
payment equal to or in excess of $50,000.00 prior to Lender’s disbursement from the Replacement Reserve Account. In addition, as a condition to any disbursement, Lender may require Borrower to obtain lien waivers from each contractor, supplier,
materialman, mechanic or subcontractor who receives payment in an amount equal to or greater than $50,000 for completion of its work or delivery of its materials. Any lien waiver delivered hereunder shall conform to the requirements of applicable
law and shall cover all work performed and materials supplied (including equipment and fixtures) for the Property by that contractor, supplier, subcontractor, mechanic or materialman through the date covered by the current payment or reimbursement
request (or, in the event that payment to such contractor, supplier, subcontractor, mechanic or materialmen is to be made by a joint check, the release of lien shall be effective through the date covered by the previous release of funds request).

  
 (e) If (i) the cost of a Replacement exceeds $50,000, and (ii)
the contractor performing such Replacement requires periodic payments pursuant to terms of a written contract, a request for payment or reimbursement from the Replacement Reserve Account may be made after completion of a portion of the work under
such contract, provided (A) such contract requires payment upon completion of such portion of the work, (B) the materials for which the request is made are on site at the Property and are properly 

  

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secured or have been installed in the Property (or if stored at a place other than the Property, are secured in a manner reasonably acceptable to Lender),
(C) all other conditions in this Agreement for disbursement have been satisfied, (D) funds remaining in the Replacement Reserve Account together with other funds or assurances reasonably satisfactory to Lender deposited with Lender and available for
such Replacements are, in Lender’s reasonable judgment, sufficient to complete such Replacement and other Replacements when required, and (E) if required by Lender, each contractor or subcontractor receiving payments equal to or in excess of
$50,000 under such contract shall provide a waiver of lien with respect to amounts which have been paid to that contractor or subcontractor. 
  
 (f) Borrower shall not make a request for disbursement from the Replacement Reserve Account more frequently than once in any calendar month and (except in
connection with the final disbursement) the total cost of all Replacements in any request shall not be less than $25,000.00. 
  
 (g) Anything in this subsection 7.3.2 to the contrary notwithstanding, the rights and obligations hereunder shall be applicable only if, as and when the
Replacement Reserve Fund is being maintained for Lender’s benefit. 
  
 7.3.3 Performance of Replacements 
  
 (a) Borrower
shall cause Replacements to be made when required in order to keep the Property in condition and repair consistent with comparable hotels in the same market segment in the metropolitan area in which the Property is located, and to keep the Property
or any portion thereof from deteriorating. Borrower shall cause to completed all Replacements in a good and workmanlike manner as soon as practicable following the commencement of making each such Replacement. Borrower shall notify Lender of any
request for disbursement from the Replacement Reserve Fund under the Mortgage Loan Documents simultaneously with such disbursement request. 
  
 (b) In connection with Replacements for which payments or reimbursements are requested from the Replacement Reserve Account, Lender reserves the right, at
its option, to approve each contract or work order with materialmen, mechanics, suppliers, subcontractors, contractors or other parties providing labor or materials in connection with the Replacements in the event amounts payable under such contract
or work order exceed $250,000.00, such approval not to be unreasonably withheld, conditioned or delayed. Upon Lender’s request, Borrower shall assign such contract or subcontract to Lender. 
  
 (c) Upon the occurrence and during the continuance of an Event of Default,
Lender shall have the option to withhold disbursement from the Replacement Reserve Account for any unsatisfactory Replacement and to proceed under existing contracts or to contract with third parties to complete such Replacement and to apply the
Replacement Reserve Fund toward the labor and materials necessary to complete such Replacement, without providing any prior notice to Borrower and to exercise any and all other remedies available to Lender upon an Event of Default hereunder.

  
 (d) In order to facilitate Lender’s completion or making
of the Replacements upon a default which continues after the expiration of all applicable cure periods (during which period Borrower has not cured such default) under the Mortgage Loan Documents, Borrower grants Lender, and shall cause Mortgage
Borrower to grant Lender, the right to enter onto the Property upon prior written notice to Borrower and subject to the rights of tenants and hotel guests and perform any and all work and labor necessary to complete or make the Replacements and/or
employ watchmen to protect the Property from damage. All sums so expended by Lender shall be deemed to have been advanced under the Loan to Borrower and secured by the Security Instruments. For this purpose Borrower constitutes and appoints Lender
its true and lawful attorney-in-fact with full power of substitution to complete or undertake the Replacements in the name of Borrower and as owner of beneficial interests in Mortgage Borrower. Such 

  

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power of attorney shall be deemed to be a power coupled with an interest and cannot be revoked, provided, however, Lender shall not exercise such power of
attorney until the earlier of (i) the occurrence and continuance of a default which continues after the expiration of all applicable cure periods (during which period Borrower has not cured such default) under the Mortgage Loan Documents, or (ii)
ten (10) days after Lender notifies Borrower of its intention to exercise such power of attorney. Borrower empowers said attorney-in-fact as follows: (i) to use any funds in the Replacement Reserve Account for the purpose of making or completing the
Replacements; (ii) to make such additions, changes and corrections to the Replacements as shall be reasonably necessary or desirable to complete the Replacements; (iii) to employ such contractors, subcontractors, agents, architects and inspectors as
shall be reasonably required for such purposes; (iv) to pay, settle or compromise all existing bills and claims which are or may become Liens against the Property, or as may be necessary or desirable for the completion of the Replacements, or for
clearance of title; (v) to execute all applications and certificates in the name of Borrower for itself or as owner of beneficial interest in Mortgage Borrower, which may be required by any of the contract documents; (vi) to prosecute and defend all
actions or proceedings in connection with the Property or the rehabilitation and repair of the Property; and (vii) to do any and every act which Borrower might do in its own behalf, itself and/or as owner of beneficial interests in the Mortgage
Borrower to fulfill the terms of this Agreement. 
  
 (e) Nothing
in this Section 7.3.3 shall: (i) make Lender responsible for making or completing the Replacements; (ii) require Lender to expend funds in addition to the Replacement Reserve Fund to make or complete any Replacement; (iii) obligate Lender to proceed
with the Replacements; or (iv) obligate Lender to demand from Borrower additional sums to make or complete any Replacement. 
  
 (f) Borrower shall permit, and cause to be permitted, Lender and Lender’s agents and representatives (including, without limitation, Lender’s
engineer, architect, or inspector) or third parties making Replacements pursuant to this Section 7.3.3 to enter onto the Property during normal business hours and upon prior written notice (subject to the rights of tenants under their Leases and
hotel patrons) to inspect the progress of any Replacements and all materials being used in connection therewith, to examine all plans and shop drawings relating to such Replacements which are or may be kept at the Property, and to complete any
Replacements made pursuant to this Section 7.3.3. Borrower shall cause all contractors and subcontractors to cooperate with Lender or Lender’s representatives or such other persons described above in connection with inspections described in
this Section 7.3.3(f) or the completion of Replacements pursuant to this Section 7.3.3. 
  
 (g) Lender may require an inspection of the Property at Borrower’s expense prior to making a monthly disbursement in excess of $250,000 for the Property from the Replacement Reserve Account in order to verify
completion of the Replacements for which payment or reimbursement is sought unless Mortgage Lender has verified such completion and Borrower has provided Lender with evidence of such verification. Lender may require that such inspection be conducted
by an appropriate independent qualified professional selected by Lender and/or may require a copy of a certificate of completion by an independent qualified professional acceptable to Lender prior to the disbursement of any amounts from the
Replacement Reserve Account. Borrower shall pay the expense of the inspection as required hereunder, whether such inspection is conducted by Lender or by an independent qualified professional. 
  
 (h) The Replacements and all materials, equipment, fixtures, or any other
item comprising a part of any Replacement shall be constructed, installed or completed, as applicable, free and clear of all mechanic’s, materialmen’s or other Liens (except for Permitted Encumbrances). 
  
 (i) Before each disbursement from the Replacement Reserve Account in excess
of $250,000.00 for the Property, Lender may require Borrower to provide Lender with a search of title to the Property effective to the date of the disbursement, which search shows that no mechanic’s or materialmen’s Liens 

  

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or other Liens of any nature (other than Liens being contested in good faith in accordance with the terms hereof) have been placed against the Property since
the date of recordation of the mortgage and that title to the Property is free and clear of all Liens (other than Permitted Encumbrances), unless such search has been performed by Mortgage Lender and Borrower has provided Lender with such search
evidencing compliance with this provision. 
  
 (j) All
Replacements shall comply with all applicable Legal Requirements of all Governmental Authorities having jurisdiction over the Property and applicable insurance requirements including, without limitation, applicable building codes, special use
permits, environmental regulations, and requirements of insurance underwriters. 
  
 (k) In addition to any insurance required under the Loan Documents, Borrower shall provide or cause to be provided workmen’s compensation insurance, builder’s risk, and public liability insurance and other
insurance to the extent required under applicable law in connection with a particular Replacement to the extent not already provided by Borrower’s existing insurance coverage. All such policies shall be in form and amount reasonably
satisfactory to Lender. All such policies which can be endorsed with standard mortgagee clauses making loss payable to Lender or its assigns shall be so endorsed. Certified copies of such policies shall be delivered to Lender. 
  
 (l) Notwithstanding the foregoing, Borrower shall cause Mortgage Borrower to
commence the Replacements at the casino costing approximately $3,200,000.00 which have been budgeted for in the Casino Budget and Borrower shall cause Mortgage Borrower to cause such Replacements to be substantially underway prior to the initial
Maturity Date. 
  
 7.3.4 Failure to Make Replacements.

  
 (a) It shall be an Event of Default under this Agreement if
Borrower fails to comply with any provision of this Section 7.3 and such failure is not cured within thirty (30) days after notice from Lender. Upon the occurrence and during the continuance of such an Event of Default, Lender may use the
Replacement Reserve Fund (or any portion thereof) for any purpose, including but not limited to completion of the Replacements as provided in Sections 7.3.3(c) and (d), or for any other repair or replacement to any Property or toward payment of the
Debt in such order, proportion and priority as Lender may determine in its sole discretion. Lender’s right to withdraw and apply the Replacement Reserve Funds shall be in addition to all other rights and remedies provided to Lender under this
Agreement and the other Loan Documents. 
  
 (b) Nothing in this
Agreement shall obligate Lender to apply all or any portion of the Replacement Reserve Fund on account of an Event of Default to payment of the Debt or in any specific order or priority. 
  
 7.3.5 Balance in the Replacement Reserve Account. 
  
 The insufficiency of any balance in the Replacement Reserve Account shall not relieve Borrower from its obligation to
fulfill all preservation and maintenance covenants in the Loan Documents. 
  
 Section 7.4 Ground Lease Escrow Fund. 
  
 Borrower shall pay to Lender on each Payment Date an amount (the “Monthly Ground Rent Deposit”) equal to one-twelfth of the annual amount that is estimated by Lender to be due and payable by the
Mortgage Borrower under the Ground Lease, the Miami Lease and the Miramar Parcel Lease for all rent and any and all other charges (collectively, the “Ground Rent”) which may be due by Mortgage 

  

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Borrower under the Ground Lease, the Miami Lease and the Miramar Parcel Lease in order to accumulate with Lender sufficient funds to pay all sums payable
under the Ground Lease, the Miami Lease and the Miramar Parcel Lease at least ten (10) Business Days prior to the dates due (said amounts, hereinafter called the “Ground Lease Escrow Fund’). The Ground Lease Escrow Fund is for the
purpose of paying all sums due under the Ground Lease, the Miami Lease and the Miramar Parcel Lease. Provided Borrower is making Monthly Ground Rent Deposits and there are sufficient sums in the Ground Lease Escrow Fund or, if there are insufficient
sums in the Ground Lease Escrow Fund, Borrower simultaneously pays any such deficiency to the ground lessor under the Ground Lease, the Miami Lease and the Miramar Parcel Lease, as applicable, Lender will apply any amounts held in the Ground Lease
Escrow Fund to the payment of Ground Rent or other charges required to be made by Borrower pursuant to Section 5.1.23 hereof. Notwithstanding the foregoing, in lieu of depositing the Monthly Ground Rent Deposit, Borrower shall have the option of
delivering to Lender a Letter of Credit equal to the annual Ground Rent due under each of the Ground Lease, the Miami Lease and the Miramar Parcel Lease, as calculated each year during the term of the Loan. Such deposit may be increased by Lender in
the amount Lender deems is necessary in its reasonable discretion based on any increases in the rent due under the Ground Lease, the Miami Lease and the Miramar Parcel Lease. Borrower shall not be permitted to request a draw under the Letter of
Credit. Anything in this Section 7.4 to the contrary notwithstanding, the rights and obligations hereunder shall be applicable only if, as and when the Ground Lease Escrow Fund is being maintained for Lender’s benefit. 
  
 Section 7.5 Intentionally Omitted. 
  
 Section 7.6 Debt Service Reserve. 
  
 7.6.1 Debt Service Reserve Deposit. 
  
 On the Closing Date, Borrower shall cause Mortgage Borrower to deposit with
or at the direction of Mortgage Lender an amount equal to the Debt Service Reserve Deposit. Amounts so deposited shall be referred to as the “Debt Service Reserve”. Notwithstanding the foregoing, in lieu of depositing the Debt
Service Reserve Deposit with Lender, Mortgage Borrower shall have the option of delivery to Lender a Letter of Credit equal to the Debt Service Reserve Deposit. 
  

7.6.2 Release of Debt Service Reserve. 
  
 Amounts on deposit in the Debt Service Reserve shall be released and applied in accordance with the provisions of the Mortgage Loan Agreement. 

 
 Section 7.7 Intentionally Omitted. 
  

	 	VIII. 	DEFAULTS 

  
 Section 8.1 Event of Default 
  
 (a) Each of the following events shall constitute an event of default hereunder (an “Event of Default”): 
  
 (i) if any portion of the Debt (other than the payments due
on the Maturity Date) is not paid within two (2) Business Days of the date the same is due and payable or if the amounts due on the Maturity Date are not paid on or prior to the Maturity Date; 
  

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 (ii) if any of the Taxes or Other Charges are not paid on or before the date when the
same are due and payable; 
  
 (iii) if the
Policies are not kept in full force and effect, or if certified copies of the Policies are not delivered to Lender upon request if required pursuant to the terms hereof; 
  
 (iv) except as expressly permitted hereunder or under the Mortgage Loan Documents, if Borrower transfers or
encumbers any portion of the Collateral or if Mortgage Borrower transfers or encumbers any portion of the Property, in either case without Lender’s prior written consent or otherwise violates the provisions of the Loan Documents and Mortgage
Loan Documents, as the case may be; 
  
 (v) if
any representation or warranty made by any Borrower, Principal, Indemnitor or Guarantor herein or in any other Loan Document, or in any report, certificate, financial statement or other instrument, agreement or document furnished to Lender shall
have been false or misleading in any material respect as of the date the representation or warranty was made (excluding for purposes of this subsection (v), any provision of a representation or warranty that is in the nature of a covenant as to the
future); 
  
 (vi) if any Borrower, Mortgage
Borrower, Principal, Indemnitor or any guarantor under any guaranty issued in connection with the Loan shall make an assignment for the benefit of creditors; 
  

(vii) if a receiver, liquidator or trustee shall be appointed for any Borrower, Mortgage Borrower, Principal, Indemnitor or any
guarantor under any guarantee issued in connection with the Loan or if any Borrower, Mortgage Borrower, Principal, Indemnitor or such guarantor shall be adjudicated a bankrupt or insolvent, or if any petition for bankruptcy, reorganization or
arrangement pursuant to federal bankruptcy law, or any similar federal or State law, shall be filed by or against, consented to, or acquiesced in by, any Borrower, Mortgage Borrower, Principal, Indemnitor or such guarantor, or if any proceeding for
the dissolution or liquidation of any Borrower, Mortgage Borrower, Principal, Indemnitor or such guarantor shall be instituted; provided, however, if such appointment, adjudication, petition or proceeding was involuntary and not consented to by such
Borrower, Mortgage Borrower, Principal, Indemnitor or such guarantor, upon the same not being discharged, stayed or dismissed within ninety (90) days; 
  
 (viii) if Borrower attempts to assign its rights under this Agreement or any of the other Loan Documents or any interest herein or therein
in contravention of the Loan Documents; 
  
 (ix)
if Borrower breaches any of its negative covenants contained in Section 5.2 in any material respect or any covenant contained in Section 5.1.10 hereof; 
  
 (x) with respect to any term, covenant or provision set forth herein or in any other Loan Document which specifically contains a notice
requirement or grace period, if Borrower shall be in default under such term, covenant or condition after the giving of such notice or the expiration of such grace period; 
  
 (xi) if any of the assumptions contained in the Insolvency Opinion or in any other
“non-consolidation” opinion delivered to Lender in connection with the Loan, or in the Additional Insolvency Opinion or in any other “non-consolidation” opinion delivered subsequent to the closing of the Loan, is or shall become
untrue in any material respect; 
  

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 (xii) if a material default has occurred and continues beyond any applicable cure period
under the Management Agreement (or any Replacement Management Agreement) if such default permits the Manager thereunder to terminate or cancel the Management Agreement (or any Replacement Management Agreement); 
  
 (xiii) if any Borrower or Principal violates or does not
comply with any of the provisions of Section 4.1.22 hereof in any material respect, including, but not limited to, if any Borrower, Mortgage Borrower or any Principal shall fail to comply with the provisions of its operating agreement, articles or
certificate of incorporation, partnership agreement or any other governing documents; 
  
 (xiv) subject to Borrower’s or Mortgage Borrower’s right to contest the same in accordance with the terms hereof or in the
Mortgage Loan Documents, if the Property becomes subject to any mechanic’s, materialman’s or other Lien other than a Permitted Encumbrance or a Lien for local real estate taxes and assessments not then due and payable, or if any portion of
the Collateral becomes subject to any Lien and the Lien shall remain undischarged of record (by payment, bonding or otherwise) for a period of thirty (30) days; 
  
 (xv) subject to Borrower’s or Mortgage Borrower’s right to contest the same in accordance with the
terms hereof or in the Mortgage Loan Documents, if any federal tax Lien or State or local income tax Lien is filed against Borrower, stockholder of Borrower, Mortgage Borrower, any Guarantor, any Indemnitor or the Property and same is not discharged
of record within forty-five (45) days after same is filed; 
  
 (xvi) (A) Borrower or Mortgage Borrower fails to timely provide Lender with the written certification and evidence referred to in Section 5.2.8 hereof, or (B) Borrower or Mortgage Borrower consummates a transaction
which would cause the Security Instruments or Lender’s exercise of its rights thereunder or under the Note, this Agreement or the other Loan Documents to constitute a nonexempt prohibited transaction under ERISA or result in a violation of a
State statute regulating governmental plans, subjecting Lender to liability for a violation of ERISA or a State statute; 
  
 (xvii) if Borrower shall fail to deliver to Lender, within fifteen (15) days after request by Lender, the estoppel certificates required
pursuant to the terms of Section 5.1.13 hereof; 
  
 (xviii) if any default occurs under any guaranty or indemnity executed in connection herewith (including, without limitation, the Guaranty and the Environmental Indemnity) or in connection with the Mortgage Loan and such default continues
after the expiration of applicable grace periods, if any; 
  
 (xix) if Mortgage Borrower shall be in default beyond applicable notice and grace periods under the Mortgage Loan, or any other mortgage, deed of trust, deed to secure debt or other security agreement covering any
part of the Property regardless of priority of such Lien; 
  
 (xx) if (i) the Interest Rate Cap Agreement is terminated for any reason by Borrower or the Counterparty, or (ii) the Counterparty defaults in the performance of its monetary obligations under the Interest Rate Cap
Agreement or (iii) the rating of the Counterparty is subject to any downgrade, withdrawal or qualification by a Rating Agency, and Borrower does not within fifteen (15) days (A) replace the terminated Interest Rate Cap Agreement with a Replacement
Interest Rate Cap Agreement in accordance with Section 2.4 hereof, and (B) deliver to Lender, in form and substance reasonably satisfactory to Lender (y) an Assignment of Interest 

  

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Rate Cap and (z) a recognition letter from the Counterparty thereto acknowledging the assignment of the Replacement Interest Rate Cap Agreement; 

 
 (xxi) if a default occurs under any of the Mortgage Loan
Documents, which but for the giving of notice or passage of time, or both, would be an event of default under such document; 
  
 (xxii) Intentionally Omitted; 
  
 (xxiii) Intentionally Omitted; 
  
 (xxiv) if (a) a default beyond any applicable notice and grace period occurs under that certain parking lease dated October 15, 2003
between Mortgage Borrower, as tenant and Laguna Del Mar Princess, Inc. (“Lot Owner”), as landlord (the “Employee Parking Lot Lease”), which default causes the landlord thereunder to terminate the Employee Parking
Lot Lease or any replacement lease entered into pursuant to the terms of Section 5.1.21 hereof and/or (b) if the leasehold estate created by the Ground Lease or any replacement lease entered into pursuant to the terms of Section 5.1.21 hereof shall
be surrendered or if the Ground Lease or any replacement lease entered into pursuant to the terms of Section 5.1.21 hereof shall be terminated or cancelled for any reason or under any circumstances whatsoever, or if any of the terms, covenants or
conditions of the Ground Lease or any replacement lease entered into pursuant to the terms of Section 5.1.21 hereof shall in any manner be (except as otherwise expressly provided in this Agreement), modified, changed, supplemented, altered, or
amended without the consent of Lender; which consent shall not be unreasonably withheld, conditioned or delayed; unless in the event of either (a) or (b) above Borrower promptly replaces the parking spaces provided under the Employee Parking Lot
Lease or replacement lease pursuant to a replacement lease acceptable to Lender, which acceptance shall not be unreasonably withheld, conditioned or delayed, provided such replacement lease contains (i) market terms, (ii) a term equal to the lesser
of (1) the period of time that the applicable spaces are reasonably expected to be unavailable or (2) at least one (1) year, and (iii) is for a comparable number of parking spaces and such replacement parking spaces are within reasonable and
sufficient proximity to the Property so as not to unreasonably interfere with the operations of the Property; 
  
 (xxv) if a default beyond any applicable notice and grace period occurs under (a) that certain lease dated December 11, 1984 between
Mortgage Borrower, as tenant and Miramar City Corporation (“Miramar”), as landlord (the “Miramar Parcel Lease”), (b) the Miami Lease or the Substitute Miami Lot Lease, as applicable, or (c) the Regency Lease, which
default causes the landlord thereunder to terminate the Miramar Parcel Lease, the Miami Lease or the Substitute Miami Lot Lease, as applicable, and/or the Regency Lease, or any replacement lease entered into pursuant to the terms of Section 5.1.21
hereof unless Mortgage Borrower promptly replaces the parking spaces provided under the Miramar Parcel Lease, the Miami Lease or the Substitute Miami Lot Lease, as applicable, and/or the Regency Lease and/or a replacement lease entered into pursuant
to the terms of Section 5.1.21 hereof pursuant to a replacement lease acceptable to Lender, which acceptance shall not be unreasonably withheld, conditioned or delayed, provided such replacement contains (i) market terms, (ii) a term equal to the
lesser of (1) the period of time that the applicable spaces are reasonably expected to be unavailable or (2) at least one (1) year, and (iii) is for a comparable number of parking spaces and such replacement parking spaces are within reasonable and
sufficient proximity to the Property so as not to unreasonably interfere with the operations of the Property; 
  
 (xxvi) Intentionally Omitted; 
  

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 (xxvii) Intentionally Omitted; 
  
 (xxviii) Intentionally omitted; 
  
 (xxix) if any of the Mortgage Loan Documents are materially
modified, amended, restated or otherwise, without Lender’s prior written consent, except as expressly provided herein; 
  
 (xxx) if Mortgage Borrower ceases to operate a hotel on the Property, or terminates such business for any reason whatsoever (other than
temporary cessation in connection with Force Majeure or any renovations to the Property or restoration of the Property after Casualty or Condemnation) or if Borrower ceases to own 100% of Mortgage Borrower; 
  
 (xxxi) if Mortgage Borrower operates the Property which is
currently operated under the name of Wyndham, under the name of any hotel chain or system other than Wyndham, or the name of the hotel chain, or system of a public or private entity into which Wyndham is merged or consolidated or by which Wyndham is
acquired in a transfer permitted under Section 5.2.12 hereof, without Lender’s prior written consent; 
  
 (xxxii) Intentionally Omitted; 
  
 (xxxiii) Intentionally Omitted; 
  
 (xxxiv) if Mortgage Borrower fails to comply with the provisions of Section 5.1.21 hereof; 
  
 (xxxv) if Borrower shall continue to be in Default under any
of the other terms, covenants or conditions of this Agreement not specified in clauses (i) through (xxxiv) above, for ten (10) days after notice to Borrower from Lender, in the case of any Default which can be cured by the payment of a sum of money,
or for thirty (30) days after notice from Lender in the case of any other Default; provided, however, that if such non-monetary Default is susceptible of cure but cannot reasonably be cured within such 30-day period and provided further that
Borrower shall have commenced to cure such Default within such 30-day period and thereafter diligently and expeditiously proceeds to cure the same, such 30-day period shall be extended for such time as is reasonably necessary for Borrower in the
exercise of due diligence to cure such Default, such additional period not to exceed ninety (90) days; 
  
 (xxxvi) if there shall be default under any of the other Loan Documents beyond any applicable cure periods, if any, contained in such
document, whether as to any Borrower, the Collateral or the Property, or if any other such event shall occur or condition shall exist, if the effect of such event or condition is to accelerate the maturity of any portion of the Debt or to permit
Lender to accelerate the maturity of all or any portion of the Debt. 
  
 (b) Upon the occurrence and during the continuance of an Event of Default (other than an Event of Default described in clauses (vi), (vii) or (viii) above) and at any time thereafter, in addition to any other rights or remedies available to
it pursuant to this Agreement and the other Loan Documents or at law or in equity, Lender may take such action, without notice or demand, that Lender deems advisable to protect and enforce its rights against Borrower and in and to all or any
Collateral, including, without limitation, declaring the Debt to be immediately due and payable, and Lender may enforce or avail itself of any or all rights or remedies provided in the Loan Documents against Borrower and any or all of the 

  

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Collateral, including, without limitation, all rights or remedies available at law or in equity; and upon any Event of Default described in clauses (vi),
(vii) or (viii) above, the Debt and all other Obligations shall immediately and automatically become due and payable, without notice or demand, and Borrower hereby expressly waives any such notice or demand, anything contained herein or in any other
Loan Document to the contrary notwithstanding. 
  
 Section 8.2
Remedies 
  
 (a) Upon the occurrence and during the
continuance of an Event of Default, all or any one or more of the rights, powers, privileges and other remedies available to Lender against Borrower under this Agreement or any of the other Loan Documents executed and delivered by, or applicable to,
Borrower or at law or in equity may be exercised by Lender at any time and from time to time, whether or not all or any of the Debt shall be declared due and payable, and whether or not Lender shall have commenced any foreclosure proceeding or other
action for the enforcement of its rights and remedies under any of the Loan Documents with respect to all or any Collateral. Any such actions taken by Lender shall be cumulative and concurrent and may be pursued independently, singly, successively,
together or otherwise, at such time and in such order as Lender may determine in its sole discretion, to the fullest extent permitted by law, without impairing or otherwise affecting the other rights and remedies of Lender permitted by law, equity
or contract or as set forth herein or in the other Loan Documents. Without limiting the generality of the foregoing, Borrower agrees that if an Event of Default is continuing, to the extent permitted by Applicable Law, (i) Lender is not subject to
any “one action” or “election of remedies” law or rule, and (ii) all Liens and other rights, remedies or privileges provided to Lender shall remain in full force and effect until Lender has exhausted all of its remedies against
the Collateral and each of the Security Instruments has been foreclosed, sold and/or otherwise realized upon in satisfaction of the Debt or the Debt has been paid in full. 
  
 (b) With respect to Borrower, nothing contained herein or in any other Loan Document shall be construed as requiring Lender
to resort to any portion of the Collateral for the satisfaction of any of the Debt in preference or priority to any other portion of the Collateral, and Lender may seek satisfaction out of all of the Collateral or any part thereof, in its absolute
discretion in respect of the Debt. In addition, to the extent permitted by Applicable Law, Lender shall have the right from time to time to partially foreclose or realize upon the Security Instruments in any manner and for any amounts secured by the
Security Instruments then due and payable as determined by Lender in its sole discretion including, without limitation, the following circumstances: (i) in the event Borrower defaults beyond any applicable grace period in the payment of one or more
scheduled payments of principal and interest, Lender may foreclose or realize one or more of the Security Instruments to recover such delinquent payments, or (ii) in the event Lender elects to accelerate less than the entire outstanding principal
balance of the Loan, Lender may foreclose or realize upon one or more of the Security Instruments to recover so much of the principal balance of the Loan as Lender may accelerate and such other sums secured by one or more of the Security Instruments
as Lender may elect. Notwithstanding one or more partial foreclosures, the Collateral shall remain subject to the Security Instruments to secure payment of sums secured by the Security Instruments and not previously recovered. 
  
 Section 8.3 Remedies Cumulative; Waivers 
  
 The rights, powers and remedies of Lender under this Agreement shall be
cumulative and not exclusive of any other right, power or remedy which Lender may have against any Borrower, as applicable, pursuant to this Agreement or the other Loan Documents, or existing at law or in equity or otherwise. Lender’s rights,
powers and remedies may be pursued singularly, concurrently or otherwise, at such time and in such order as Lender may determine in Lender’s sole discretion. No delay or omission to exercise any remedy, right or power accruing upon an Event of
Default shall impair any such remedy, 

  

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right or power or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be
deemed expedient. A waiver of one or more Defaults or Events of Default with respect to Borrower shall not be construed to be a waiver of any subsequent Default or Event of Default by Borrower or to impair any remedy, right or power consequent
thereon. 
  

	 	IX.	SPECIAL PROVISIONS 

  
 Section 9.1 Sale of Notes and Securitization. 
  
 Lender may, at any time, sell, transfer, pledge or assign the Note, this Agreement, the Security Instruments and the other Loan Documents, and any or all
servicing rights with respect thereto, or grant participations therein or issue mortgage pass-through certificates or other securities (the “Securities”) evidencing a beneficial interest in a rated or unrated public offering or
private placement (a “Securitization”). At the request of the holder of the Note and, to the extent not already required to be provided by Borrower under this Agreement, Borrower shall, at Borrower’s expense (subject to the
limitations set forth below), use reasonable efforts to satisfy the market standards to which the holder of the Note customarily adheres or which may be reasonably required in the marketplace or by the Rating Agencies in connection with a
Securitization or the sale of the Note or the participations or Securities, including, without limitation, to: 
  

	 	(a)	(i) provide such financial and other information with respect to the Property, Borrower, Mortgage Borrower and Manager, (ii) provide budgets relating to the Property and (iii) to
perform or permit or cause to be performed or permitted, at Lender’s expense, such site inspection, appraisals, market studies, environmental reviews and reports (Phase I’s and, if appropriate, Phase II’s), engineering reports and
other due diligence investigations of the Property, due diligence with respect to the Collateral as may be reasonably requested by the holder of the Note or the Rating Agencies or as may be necessary or appropriate in connection with the
Securitization (the “Provided Information”), provided, however Phase II reports and other invasive testing may not be performed at the Property unless Borrower has received evidence of insurance for any Person performing such
testing, together, if customary, with appropriate verification and/or consents of the Provided Information through letters of auditors or opinions of counsel of independent attorneys acceptable to Lender and the Rating Agencies;

  

	 	(b)	if required by the Rating Agencies, deliver (i) revised and/or updated opinions of counsel as to non-consolidation, due execution and enforceability with respect to the Property,
Collateral, Mortgage Borrower, Borrower, Guarantor, Indemnitor, Principals and their respective Affiliates and the Loan Documents, and (ii) revised organizational documents as they relate to the single purpose bankruptcy remoteness of Mortgage
Borrower, Borrower and/or Principals, (provided, however, no such revisions to any Mortgage Borrower’s, Borrower’s or Principal’s organizational documents shall have a material adverse effect on such Mortgage Borrower, Borrower and/or
Principal, as applicable) which counsel, opinions and organizational documents shall be satisfactory to Lender and the Rating Agencies; 

  

	 	(c)	 if required by the Rating Agencies, exercise commercially reasonable efforts to deliver such additional tenant estoppel letters, subordination agreements or other
agreements from parties to agreements that affect the Property, which estoppel 

  

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letters, subordination agreements or other agreements shall be satisfactory to Lender and the Rating Agencies. 

  

	 	(d)	execute such amendments to the Loan Documents and organizational documents, as may be requested by the holder of the Note or the Rating Agencies or otherwise to effect the
Securitization; provided, however, that Borrower shall not be required to modify or amend any organizational document or Loan Document if such modification or amendment would (except for modifications and amendments required to be made pursuant to
Section (e) below,) (i) change the interest rate, the stated maturity or the amortization of principal set forth in the Note, or (ii) modify or amend any other material economic or material non-economic term of the organizational documents or Loan
Documents. 

  

	 	(e)	if Lender elects, in its sole discretion, prior to or upon a Securitization, to split the Loan into two or more parts, or the Note into multiple component notes or tranches which
may have different interest rates, amortization payments, principal amounts and maturities, Borrower agrees to cooperate with Lender in connection with the foregoing and to execute the required modifications and amendments to the Note, this
Agreement and the Loan Documents and to provide opinions necessary to effectuate the same; provided, however Borrower shall not be required to modify or amend any Loan Documents if (i) (i) the initial weighted average interest rate of such split
notes would be greater than the Applicable Interest Rate immediately preceding such loan split or (ii) such modification or amendment would change the Maturity Date or Monthly Scheduled Amortization payment or (iii) the aggregate scheduled
amortization payments exceed the Monthly Scheduled Amortization Payments, provided, that, notwithstanding the provisions below, Borrower shall not be responsible for the payment of any title insurance premiums required by Lender in connection with
the foregoing, but Borrower shall be responsible for all other cost and expenses (subject to the limitations set forth below) in complying with this Section 9.1(e). 

  

	 	(f)	execute modifications to the Loan Documents changing the interest rate and/or the amortization payments for the Loan and the Mortgage Loan, provided that the initial weighted
average of the interest rate spreads for the Loan and the Mortgage Loan after such modification shall not exceed the weighted average of the interest rate spreads for the Loan and the Mortgage Loan immediately prior to such modification and the
scheduled amortization payments after such modification will not exceed the Monthly Scheduled Amortization Payments, if any, due under the Loan Agreement and the Mortgage Loan Agreement immediately prior to such modification. Borrower shall also
provide opinions and title insurance reasonably necessary to effectuate the same; 

  

	 	(g)	make such representations and warranties as of the closing date of the Securitization with respect to the Property, Collateral, Mortgage Borrower, Borrower, and the Loan Documents
as are customarily provided in securitization transactions and as may be reasonably requested by the holder of the Note or the Rating Agencies and consistent with the facts covered by such representations and warranties as they exist on the date
thereof, including the representations and warranties made in the Loan Documents; and 

  

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	 	(h)	supply to Lender such documentation, financial statements and reports in form and substance required for Lender to comply with Regulation S-X of the federal securities law, if and
to the extent applicable to the Securitization. 

  
 Borrower shall not incur any costs in complying with this Section 9.1 except for fees of legal counsel employed by Borrower, Principals, Wyndham and/or any Affiliate of any of the foregoing in connection with any modifications to the Loan
Documents or review of opinions, documents, agreements or similar items which are delivered by Borrower, Principals, Wyndham and/or any Affiliate of any of the foregoing in complying with the provisions of this Section 9.1. The limitation on costs
and expenses set forth in the foregoing sentence shall in no way affect Borrower’s obligations to comply with this Section 9.1. 
  
 Section 9.2 Securitization Indemnification. 
  
 (a) Borrower understands that certain of the Provided Information may be included in disclosure documents in connection with the Securitization,
including, without limitation, a prospectus, prospectus supplement or private placement memorandum (each, a “Disclosure Document”) and may also be included in filings (the “Exchange Act Filing”) with the Securities
and Exchange Commission pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or provided or made available to
investors or prospective investors in the Securities, the Rating Agencies, and service providers relating to the Securitization. In the event that the Disclosure Document is required to be revised prior to the sale of all Securities, Borrower will
cooperate with the holder of the Note in updating the Disclosure Document by providing all current information necessary to keep the Disclosure Document accurate and complete in all material respects. 
  
 (b) Borrower agrees to provide in connection with each of (i) a preliminary
and a final private placement memorandum or offering circular or (ii) a preliminary and final prospectus or prospectus supplement, as applicable (collectively, the “Offering Materials”), an indemnification certificate (A) certifying
that Borrower has carefully examined such memorandum or prospectus, as applicable, including without limitation, the sections entitled “Special Considerations,” “Description of the Mortgages,” “Description of the Mortgage
Loans and Mortgaged Property,” “The Collateral,” “The Manager,” “The Mortgage Borrower,” “The Borrower” and “Certain Legal Aspects of the Mezzanine Loan,” and such sections (and any other
sections reasonably requested to the extent the same relate to the Loan, the Loan Documents, Mortgage Borrower, Borrower, Guarantor, Indemnitor, Principals or an Affiliate of any of the foregoing) do not (and with respect to any portion of the
Offering Materials prepared in reliance on the reports of third-parties, to the best of Borrower’s knowledge, do not) contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements
made, in the light of the circumstances under which they were made, not misleading, (B) indemnifying Lender (and for purposes of this Section 9.2, Lender hereunder shall include its officers and directors), the Affiliate of Lehman Brothers Inc.
(“Lehman”) that has filed the registration statement, if any, relating to the securitization (the “Registration Statement”), each of its directors, each of its officers who have signed the Registration Statement and
each Person who controls the Affiliate within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively, the “Lehman Group”), and Lehman, each of its directors and each Person who controls
Lehman within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act (collectively, the “Underwriter Group”) for any losses, claims, damages or liabilities (collectively, the
“Liabilities”) to which Lender, the Lehman Group or the Underwriter Group may become subject insofar as the Liabilities arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained
in such sections (other than such statement or misstatement made in Borrower’s good faith reliance upon the reports of third parties that do not to the best of Borrower’s knowledge, contain any untrue statement or 

  

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misstatement or a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading) or
arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated in such sections or necessary in order to make the statements in such sections or in light of the circumstances under which they
were made, not misleading and (C) agreeing to reimburse Lender, the Lehman Group and the Underwriter Group for any legal or other out-of-pocket expenses reasonably incurred by Lender and Lehman in connection with investigating or defending the
Liabilities; provided, however, that Borrower will be liable in any such case under clauses (B) or (C) above only to the extent that any such loss claim, damage or liability arises out of or is based upon any such untrue statement or omission made
therein in reliance upon and in conformity with information furnished to Lender by or on behalf of Borrower in connection with the preparation of the memorandum or prospectus or in connection with the underwriting of the debt, including, without
limitation, financial statements of Borrower and Mortgage Borrower, operating statements, rent rolls, environmental site assessment reports and property condition reports with respect to the Property and valuations of Collateral but excluding any
projections made in good faith by Borrower; and provided that this Section 9.2 shall not apply to any loss, claim, damage or liability to the extent arising out of any untrue statement, misstatement or omission or alleged untrue statement,
misstatement or omission made in reliance upon and in connection with written information furnished to Borrower by Lender, any member of the Lehman Group or any member of the Underwriter Group expressly for use in the Offering Materials unless
Borrower, Principals or Indemnitor fails to correct any such untrue statement, misstatement or omission with respect to Borrower, Mortgage Borrower, Principals or Indemnitor that is known to Borrower, Principals or Indemnitor or that, with the
exercise of customary reasonable efforts, should be known to Borrower, Principals or Indemnitor. The foregoing indemnity with respect to any untrue statement or misstatement contained in, or omission from, preliminary Offering Materials shall not
inure to the benefit of any member of the Lehman Group or the Underwriting Group (or any person controlling such Lehman Group or Underwriting Group) from whom the Person asserting any such loss, liability, claim, damage or expense purchased any of
the securities which are the subject thereof if Borrower shall sustain the burden of proving that any such loss, liability, claim, damage or expense resulted from the fact that such Person was not provided with a copy of the final Offering Materials
at or prior to the written confirmation of the sale of such securities to such Person and the loss, liability, claim, damage or expense resulted from an untrue statement or misstatement contained in, or omission from, the preliminary Offering
Materials that was corrected in the final Offering Materials. This indemnity agreement will be in addition to any liability which Borrower may otherwise have. Moreover, the indemnification provided for in Clauses (B) and (C) above shall be effective
whether or not an indemnification certificate described in (A) above is provided and shall be applicable based on information previously provided by Borrower or its Affiliates if Borrower does not provide the indemnification certificate.

  
 (c) In connection with filings under the Exchange Act,
Borrower agrees to indemnify (i) Lender, the Lehman Group and the Underwriter Group for Liabilities to which Lender, the Lehman Group or the Underwriter Group may become subject insofar as the Liabilities arise out of or are based upon the omission
or alleged omission to state in the Provided Information a material fact required to be stated in the Provided Information in order to make the statements in the Provided Information, in light of the circumstances under which they were made not
misleading (other than any such statement, misstatement or omission made in reliance upon the reports of third parties that do not, to the best of Borrower’s knowledge, contain any untrue statement or misstatement, of a material fact or omit to
state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading) and (ii) reimburse Lender, the Lehman Group or the Underwriter Group for any legal or other expenses
reasonably incurred by Lender, the Lehman Group or the Underwriter Group in connection with defending or investigating the Liabilities. The foregoing indemnity shall not apply with respect to any Liabilities that arise out of or are based upon any
untrue statement, misstatement or omission or any alleged untrue statement, misstatement or omission to state in the Provided Information a 

  

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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
materially misleading, if such untrue statement, misstatement or omission or alleged untrue statement, misstatement or omission related to statements of information that do not accurately reflect Provided Information or any corrections or updates to
Provided Information which were provided prior to the delivery of the final Offering Materials to investors and none of Borrower, Principals or Indemnitor has been given reasonable opportunity to review the proposed filing under the Exchange Act and
to correct such untrue statement, misstatement or omission. In no event shall the indemnification, contribution or reimbursement obligations of Borrower under this Section 9.2 apply to any filings made under the Exchange Act after the initial
filings, if any, are made. 
  
 (d) Promptly after receipt by an
indemnified party under this Section 9.2 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 9.2, notify the indemnifying party in
writing of the commencement thereof, but the omission to so notify the indemnifying party will not relieve the indemnifying party from any liability which the indemnifying party may have to any indemnified party hereunder except to the extent that
failure to notify causes prejudice to the indemnifying party. In the event that any action is brought against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled, jointly
with any other indemnifying party, to participate therein and, to the extent that it (or they) may elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the
defense thereof with counsel satisfactory to such indemnified party. After notice from the indemnifying party to such indemnified party under this Section 9.2 the indemnifying party shall not be responsible for any legal or other expenses
subsequently incurred by such indemnified patty in connection with the defense thereof other than reasonable costs of investigation; provided, however, if the defendants in any such action include both the indemnified party and the indemnifying
party and the indemnified party shall have reasonably concluded that there are any legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party, the indemnified
party or parties shall have the right to select separate counsel to assert such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party to parties. The Indemnified Person shall have the right to
employ separate counsel in any such action and to participate in the defense thereof but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless: (i) the employment thereof has been specifically authorized by
Borrower in writing; or (ii) in such claims or action there is, in the reasonable opinion of independent counsel, a conflict concerning any material issue between the position of Borrower and such Indemnified Person, in which case if such
Indemnified Person notifies Borrower in writing that it elects to employ separate counsel at the expense of Borrower, then such counsel shall have the right to assume the defense of such action on behalf of such Indemnified Person; provided,
however, that unless, in the reasonable opinion of independent counsel, an actual or potential conflict exists between two or more Indemnified Persons, Borrower shall not be required to pay the fees and disbursements of more than one separate
counsel for all Indemnified Persons. Nothing set forth herein is intended to or shall impair the right of any Indemnified Person to retain separate counsel at its own expense. 
  
 (e) In order to provide for just and equitable contribution in circumstances in which the indemnity agreements provided for
in Section 9.2(b) or (c) is or are for any reason held to be unenforceable by an indemnified party in respect of any losses, claims, damages or liabilities (or action in respect thereof) referred to therein which would otherwise be indemnifiable
under Section 9.2(b) or (c), the indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of such losses, claims, damages or liabilities (or action in respect thereof); provided, however, that no Person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. In determining the amount of contribution
to which the respective parties are entitled, the following 

  

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factors shall be considered: (i) Lehman’s and Borrower’s relative knowledge and access to information concerning the matter with respect to which
claim was asserted; (ii) the opportunity to correct and prevent any statement or omission; and (iii) any other equitable considerations appropriate in the circumstances. Lender and Borrower hereby agree that it would not be equitable if the amount
of such contribution were determined by pro rata or per capita allocation. 
  
 (f) The liabilities and obligations of both Borrower and Lender under this Section 9.2 shall survive the termination of this Agreement and the satisfaction and discharge of the Debt. 
  
 Section 9.3 Servicer. 
  
 At the option of Lender, the Loan may be serviced by a
servicer/trustee (the “Servicer’) selected by Lender and Lender may delegate all or any portion of its responsibilities under this Agreement and the other Loan Documents to the Servicer pursuant to a servicing agreement (the
“Servicing Agreement”) between Lender and Servicer. Borrower shall not be responsible for the payment of the monthly primary servicing fee in connection with the Loan; however, Borrower shall be responsible in accordance with
Section 10.13 hereof and the other applicable provisions of this Agreement for other reasonable and customary fees and charges incurred by the Servicer in administering the terms and provisions of this Agreement and the other Loan Documents.

  
 Section 9.4 Exculpation 
  
 (a) Except as otherwise provided herein, Lender shall not enforce the
liability and obligation of Borrower to perform and observe the representations, warranties, covenants and obligations contained in the Note, this Agreement, the Security Instruments, or the other Loan Documents by any action or proceeding against
Borrower wherein a money judgment shall be sought, except that Lender may bring a foreclosure action, action for specific performance or other appropriate action or proceeding to enable Lender to enforce and realize upon its interest in the Note,
this Agreement, the Security Instruments, the other Loan Documents, and the Collateral and any other collateral given to Lender pursuant to the Note, this Agreement, the Security Instruments or the other Loan Documents; provided, however, that any
judgment in any such action or proceeding shall be enforceable against Borrower only to the extent of Borrower’s interests in the Collateral and in any other collateral given to Lender. In no event shall any Related Party have any personal
liability for the payment of the indebtedness or any other sums due hereunder, under the Note, the Security Instruments or the other Loan Documents, or for the performance or observance of any other obligation of Borrower other than pursuant to a
written instrument executed by such Related Party specifically providing for such liability. Lender, by accepting the Note, this Agreement, the Security Instruments, agrees that it shall not, except as otherwise provided herein, sue for, seek or
demand any deficiency judgment against Borrower and/or any Related Party in any such action or proceeding, under or by reason of or under or in connection with the Note, this Agreement, the other Loan Documents, the Security Instruments. The
provisions of this Section shall not, however, (i) constitute a waiver, release or impairment of any obligation evidenced or secured by the Note, this Agreement, the other Loan Documents, the Security Instruments; (ii) impair the right of Lender to
name Borrower(s) as party defendant(s) in any action or suit for judicial foreclosure and sale or other remedy under the Security Instruments; (iii) affect the validity or enforceability of any indemnity (including, without limitation, the
Environmental Indemnity), guaranty (including, without limitation, the Guaranty), master lease or similar instrument made in connection with the Note, this Agreement, the Security Instruments or the other Loan Documents, (iv) impair the right of
Lender to obtain the appointment of a receiver; (v) impair the enforcement of the Security Instruments; (vi) impair the right of Lender to enforce the provisions of Sections 4.1.8, 4.1.16(o), 4.1.26, 4.1.28, 5.1.9, 5.1.19 and 5.2.8 of this
Agreement; or (vii) impair the right of Lender to obtain a deficiency judgment or other judgment on the Note against Borrower if necessary to preserve or enforce its rights and remedies against any Collateral and/or 

  

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Insurance Proceeds or Awards to which Lender would otherwise be entitled under the Loan Documents; provided, however, Lender shall only enforce
such judgment against such Collateral and/or to the extent of the Insurance Proceeds or Awards actually obtained by Borrower, as the case may be. 
  
 (b) Notwithstanding the provisions of this Section 9.4 to the contrary, Borrower shall be personally liable to Lender for the direct, actual Losses it
incurs due to: (i) fraud or intentional misrepresentation by Borrower or any Related Party in connection with the execution and the delivery of the Note, this Agreement, the Security Instruments or the other Loan Documents; (ii) any intentional
misapplication or misappropriation by Borrower or Mortgage Borrower of Rents received by Borrower or Mortgage Borrower after the occurrence of an Event of Default; (iii) any intentional misapplication or misappropriation by Borrower or Mortgage
Borrower of tenant security deposits or Rents collected more than one month in advance; (iv) the intentional misapplication or the misappropriation by Borrower or Mortgage Borrower of Insurance Proceeds or Awards; (v) any failure to pay Taxes, Other
Charges or Ground Rent, charges for labor or materials or other charges by Borrower or Mortgage Borrower that can create Liens on any of the Collateral or one or more of the Property (except to the extent that sums sufficient to pay such amounts
have been deposited in the Lockbox Account or are otherwise in escrow with Lender or Mortgage Lender pursuant to the terms of this Agreement or the Mortgage Loan Agreement) but only to the extent that the Net Operating Income from the Property
available to Borrower was sufficient to permit Borrower to pay the same when due; (vi) any failure by Borrower to return or to reimburse Lender for all Personal Property taken from the Property by or on behalf of Borrower after the occurrence of an
Event of Default and in violation of the terms of this Agreement and the Security Instruments and not replaced with Personal Property of the same utility and of the same or greater value; (vii) any act of actual intentional waste or arson by
Borrower, Mortgage Borrower, any Principal, Affiliate or general partner thereof or by any Indemnitor or Guarantor which is not attributable to a lack of sufficient Net Operating Income available to Borrower from the Property or Collateral to
perform all of Borrower’s or such Affiliate’s obligations under the Note, this Agreement, the Security Instruments or the other Loan Documents; (viii) any fees or commissions paid by Borrower to any Principal, Affiliate or of Borrower,
Indemnitor or Guarantor in violation of the terms of the Note, this Agreement, the Security Instruments or the other Loan Documents; (ix) any failure by Borrower to comply with the provisions of Sections 4.1.26 and 5.1.19 hereof; or (x) if the
Property, the Collateral or any part thereof shall become an asset in an involuntary bankruptcy or insolvency proceeding commenced by any Person (other than Lender) and Borrower fails to use their respective commercially reasonable efforts to obtain
a dismissal of such proceedings. 
  
 (c) Notwithstanding the
foregoing, the agreement of Lender not to pursue recourse liability as set forth in Subsection (a) above SHALL BECOME NULL AND VOID and shall be of no further force and effect as to Borrower (but not to any Related Party other than pursuant to a
written instrument executed by such Related Party specifically providing for such liability) (i) in the event of willful default by Borrower to provide a report or information under Section 5.1.10(b), (c), (f), (i), (j), (k) and (l), but a failure
to provide such reports and information shall not be deemed willful if such failure is the result of good faith error and is cured within ten (10) Business Days after notice is delivered to Borrower, provided, however, that if (x) Borrower is
prevented by an unaffiliated third party from delivering such information, and (y) Borrower uses reasonable efforts (including the reasonable expenditure of money) to obtain such information, then such failure shall not be deemed willful so long as
Borrower continuously endeavors in good faith to obtain the required financial reports and information and delivers same to Lender as soon as it becomes available to Borrower, (ii) in the event of a default under Section 4.1.22 of this Agreement
such that either (A) such failure was considered by a court as a factor in the court’s finding for a consolidation of the assets of Borrower with the assets of another Person or (B) as a result thereof, Lender suffers any material damage, cost,
liability, or expense (including reasonable attorneys’ fees and disbursements, whether or not litigation has commenced); provided, however, that in the absence of an actual consolidation, recourse may be had against any of the Borrower only to
the extent of Losses 

  

 103 

 
for its failure to comply with the provisions of Section 4.1.22, (iii) in the event of a default under Section 5.2.12 of this Agreement, (iv) in the event
that Borrower or Mortgage Borrower incurs Indebtedness not otherwise permitted under the Loan Documents or the Mortgage Loan Documents; provided, however, if an agent or employee of Borrower or a Manager enters into an Equipment lease or Equipment
financing in violation of the provisions of the Mortgage Loan Documents or the Loan Documents without express authorization from an executive officer of Borrower, Mortgage Borrower, Indemnitor or Guarantor, then such violation for purposes of this
subsection (iv) shall not result in a nullification of subsection 9.4(a) (but Borrower shall be liable for all Losses related to such violation) so long as such Equipment lease or Equipment financing is terminated and released to Lender’s
reasonable satisfaction within ten (10) Business Days of the earlier of (x) Lender’s notice to Borrower (or Mortgage Lender’s notice to Mortgage Borrower) of such violation or (y) the date that an executive officer of
Borrower, Mortgage Borrower or any officer of Borrower or Mortgage Borrower or of Indemnitor or Guarantor actually becomes aware of such violation, (v) if the Property or Collateral or any part thereof shall become an asset in a voluntary bankruptcy
or insolvency proceeding or (vi) if the first full Monthly Debt Service Payment Amount is not paid when due. 
  
 (d) Nothing herein shall be deemed to be a waiver of any right which Lender may have under Section 506(a), 506(b), 1111(b) or any other provision of the
Bankruptcy Code to file a claim for the full amount of the indebtedness secured by the Security Instruments or to require that all collateral shall continue to secure all of the indebtedness owing to Lender in accordance with the Note, this
Agreement, the Security Instruments and the other Loan Documents. 
  
 Section 9.5 Intentionally Omitted. 
  
 Section 9.6
Reallocation of Loan Amounts. 
  
 Lender shall have the
right, from time to time, to sever the Note and the other Loan Documents into one or more separate notes, Security Instruments and other security documents (the “Severed Loan Documents”) in such denominations as Lender shall
determine in its sole discretion for purposes of evidencing and enforcing its rights and remedies provided hereunder. Borrower shall execute and deliver to Lender from time to time, promptly after the request of Lender, a severance agreement and
such other documents as Lender shall request in order to effect the severance described in the preceding sentence, all in form and substance reasonably satisfactory to Lender; provided that (i) the aggregate principal amount of the Loan immediately
following such severance shall equal the outstanding principal balance of the Loan immediately prior to such reallocation, (ii) the aggregate Monthly Scheduled Amortization Payments immediately following such severance shall not exceed the aggregate
Monthly Scheduled Amortization Payments immediately prior to such severance, (iii) the weighted average interest rate of the Note and the Mortgage Note immediately following such severance shall equal the weighted average interest rate which was
applicable to the Note and the Mortgage Note immediately prior to such severance and (iv) except as provided in clauses (i) through and including (iii) above, Borrower’s obligations under the Loan Documents shall not be increased nor shall any
of Borrower’s rights pursuant to the Loan Documents be diminished. Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney, coupled with an interest, in its name and stead to make and execute all documents
necessary or desirable to effect the aforesaid severance, Borrower ratifying all that its said attorney shall do by virtue thereof; provided, however, Lender shall not make or execute any such documents under such power until ten (10) days after
notice has been given to Borrower by Lender of Lender’s intent to exercise its rights under such power. The Severed Loan Documents shall not contain any representations, warranties or covenants not contained in the Loan Documents and any such
representations and warranties contained in the Severed Loan Documents will be given by Borrower only as of the date hereof, except for those representations and warranties which Borrower will update as of the Closing Date, which will be given as of
the Closing Date. 
  

 104 

	 	X.	MISCELLANEOUS 

  
 Section 10.1 Survival 
  
 This Agreement and all covenants, agreements, representations and warranties made herein and in the certificates delivered pursuant hereto shall survive
the making by Lender of the Loan and the execution and delivery to Lender of the Note, and shall continue in full force and effect so long as all or any of the Debt is outstanding and unpaid unless a longer period is expressly set forth herein or in
the other Loan Documents. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the legal representatives, successors and assigns of such party. All covenants, promises and agreements in this
Agreement, by or on behalf of Borrower, shall inure to the benefit of the legal representatives, successors and assigns of Lender. 
  
 Section 10.2 Lender’s Discretion 
  
 Whenever pursuant to this Agreement, Lender exercises any right given to it to approve or disapprove, or any arrangement or term is to be satisfactory to
Lender, the decision of Lender to approve or disapprove or to decide whether arrangements or terms are satisfactory or not satisfactory shall (except as is otherwise specifically herein provided) be in the sole, but good faith discretion of Lender
and shall be final and conclusive if made in good faith. Whenever herein it is otherwise provided that approvals shall not be unreasonably withheld, conditioned or delayed, Lender shall apply the standards of a reasonably prudent mezzanine lender.
To the extent Lender provides notice to Borrower, all rights of Lender to approve or disapprove or to decide whether arrangements or terms are satisfactory or unsatisfactory, may be exercised by a member of Lender. Any such exercise by a member of
Lender, as provided in such notice to Borrower, shall be treated as an exercise by Lender. 
  
 Section 10.3 Governing Law. 
  
 (a) THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT ENTERED INTO PURSUANT TO THE LAWS OF THE STATE OF NEW YORK AND SHALL IN ALL RESPECTS BE GOVERNED, CONSTRUED, APPLIED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
(WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS). 
  
 (b) WITH
RESPECT TO ANY CLAIM OR ACTION ARISING HEREUNDER OR UNDER THIS AGREEMENT, THE NOTE, OR THE OTHER LOAN DOCUMENTS, BORROWER (A) IRREVOCABLY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT
COURT LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK, NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF, AND (B) IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY HAVE AT ANY TIME TO THE LAYING ON VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT, THE NOTE OR THE OTHER LOAN DOCUMENTS BROUGHT IN ANY SUCH COURT, IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. NOTHING IN THIS
AGREEMENT, THE NOTE OR THE OTHER LOAN DOCUMENTS WILL BE DEEMED TO PRECLUDE LENDER FROM BRINGING AN ACTION OR PROCEEDING WITH RESPECT HERETO IN ANY OTHER JURISDICTION. 
  

 105 

 Section 10.4 Modification, Waiver in Writing 
  
 No modification, amendment, extension, discharge, termination or waiver of
any provision of this Agreement, the Note, or of any other Loan Document, nor consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in a writing signed by the party against whom enforcement is
sought, and then such waiver or consent shall be effective only in the specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to, or demand on Borrower, shall entitle Borrower to any other
or future notice or demand in the same, similar or other circumstances. 
  
 Section 10.5 Delay Not a Waiver 
  
 Neither any
failure nor any delay on the part of Lender in insisting upon strict performance of any term, condition, covenant or agreement, or exercising any right, power, remedy or privilege hereunder, or under the Note or under any other Loan Document, or any
other instrument given as security therefor, shall operate as or constitute a waiver thereof, nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise of any other right, power, remedy or privilege. In
particular, and not by way of limitation, by accepting payment after the due date of any amount payable under this Agreement, the Note or any other Loan Document, Lender shall not be deemed to have waived any right either to require prompt payment
when due of all other amounts due under this Agreement, the Note or the other Loan Documents, or to declare a default for failure to effect prompt payment of any such other amount. 
  
 Section 10.6 Notices 
  
 All notices or other written communications hereunder shall be deemed to have been properly given (i) upon delivery, if delivered in person or by
facsimile transmission with receipt acknowledged by the recipient thereof and confirmed by telephone by sender, (ii) one (1) Business Day after having been deposited for overnight delivery with any reputable overnight courier service, or (iii) three
(3) Business Days after having been deposited in any post office or mail depository regularly maintained by the U.S. Postal Service and sent by registered or certified mail, postage prepaid, return receipt requested, addressed as follows:

  

			
	 If to Borrower:
	  	 c/o Wyndham International, Inc.

	 	  	 1950 Stemmons Freeway

	 	  	 Suite 6001

	 	  	 Dallas, Texas 75207

	 	  	 Attention: Chief Financial Officer

	 	  	 Facsimile No.: (214) 863-1986

		
	 With a copy to:
	  	 c/o Wyndham International, Inc.

	 	  	 1950 Stemmons Freeway

	 	  	 Suite 6001

	 	  	 Dallas, Texas 75207

	 	  	 Attention: General Counsel

	 	  	 Facsimile No.: (214) 863-1986

		
	 	  	 and

		
	 	  	 Akin, Gump, Strauss, Hauer & Feld, LLP

	 	  	 1700 Pacific Avenue

	 	  	 Suite 4100

	 	  	 Dallas, Texas 75201

	 	  	 Attention: Carl B. Lee, P.C.

	 	  	 Facsimile No.: (214) 969-4343

	 	  	 and

  

 106 

			
	 	  	 Shack Siegel Katz & Flaherty P.C.

	 	  	 530 Fifth Avenue

	 	  	 New York, New York 10036

	 	  	 Attention: Steven M. Lutt, Esq.

	 	  	 Facsimile No.: (212) 730-1964

		
	 If to Lender:
	  	 Lehman Brothers Holdings Inc.

	 	  	 399 Park Avenue

	 	  	 New York, New York 10022

	 	  	 Attention: Mr. Joseph J. Flannery

	 	  	 Facsimile No.: (646) 758-1938

		
	 With a copy to:
	  	 Katten Muchin Zavis Rosenman

	 	  	 575 Madison Avenue

	 	  	 New York, New York 10022

	 	  	 Attention: Jill D. Block, Esq.

	 	  	 Facsimile No.: (212) 940-8776

  
 or addressed as such party may from
time to time designate by written notice to the other parties. 
  
 A party by notice to the others may designate additional or different addresses for subsequent notices or communications. 
  
 Section 10.7 Trial by Jury. 
  
 BORROWER HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT
ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY SUCH BORROWER, AND
IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER
BY BORROWER. 
  
 Section 10.8 Headings 
  
 The Article and/or Section headings and the Table of Contents in this
Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 
  

 107 

 Section 10.9 Severability 
  
 Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Agreement. 
  
 Section 10.10
Preferences 
  
 Lender shall have the continuing and
exclusive right to apply or reverse and reapply any and all payments by Borrower to any portion of the Obligations. To the extent Borrower makes a payment or payments to Lender, which payment or proceeds or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, State or federal law, common law or equitable cause, then, to the extent of such payment
or proceeds received, the Obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been received by Lender. 
  
 Section 10.11 Waiver of Notice 
  
 Borrower shall not be entitled to any notices of any nature whatsoever from
Lender except with respect to matters for which this Agreement or the other Loan Documents specifically and expressly provide for the giving of notice by Lender to Borrower and except with respect to matters for which Borrower is not, pursuant to
applicable Legal Requirements, permitted to waive the giving of notice. Borrower hereby expressly waives the right to receive any notice from Lender with respect to any matter for which this Agreement or the other Loan Documents do not specifically
and expressly provide for the giving of notice by Lender to Borrower. 
  
 Section 10.12 Remedies of Borrower 
  
 In the
event that a claim or adjudication is made that Lender or its agents have acted unreasonably or unreasonably delayed acting in any case where by law or under this Agreement or the other Loan Documents, Lender or such agent, as the case may be, has
an obligation to act reasonably or promptly, Borrower agrees that neither Lender nor its agents shall be liable for any monetary damages, and Borrower’s sole remedies (individually and collectively) shall be limited to commencing an action
seeking injunctive relief or declaratory judgment. The parties hereto agree that any action or proceeding to determine whether Lender has acted reasonably shall be determined by an action seeking declaratory judgment. 
  
 Section 10.13 Expenses; Indemnity 
  
 (a) Except as otherwise expressly provided herein or in any of the other Loan
Documents, Borrower covenants and agrees to pay or, if Borrower fails to pay, to reimburse, Lender upon receipt of written notice from Lender for all reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees and
disbursements) incurred by Lender in connection with (i) the preparation, negotiation, execution and delivery of this Agreement and the other Loan Documents and the consummation of the transactions contemplated hereby and thereby and all the costs
of furnishing all opinions by counsel for Borrower (including without limitation any opinions requested by Lender as to any legal matters arising under this Agreement or the other Loan Documents with respect to the Collateral or with respect to the
Property or the Mortgage Borrower); (ii) Borrower’s ongoing performance of and compliance with Borrower’s respective agreements and covenants contained in this Agreement and the other Loan Documents on its part to be performed or complied
with after the date hereof and the Mortgage 

  

 108 

 
Borrower’s ongoing performance of and compliance with Borrower’s respective agreements and covenants contained in this Agreement and the other Loan
Documents on its part to be performed or complied with under the Mortgage Loan Documents, in each case, including, without limitation, confirming compliance with environmental and insurance requirements; (iii) Lender’s ongoing performance and
compliance with all agreements and conditions contained in this Agreement and the other Loan Documents on its part to be performed or complied with after the date hereof and the Mortgage Borrower’s ongoing performance of and compliance with
Borrower’s respective agreements and conditions contained in this Agreement and the other Loan Documents on its part to be performed or complied with under the Mortgage Loan Documents; (iv) the negotiation, preparation, execution, delivery and
administration of any consents, amendments, waivers or other modifications to this Agreement and the other Loan Documents and any other documents or matters requested by Lender; (v) securing Borrower’s compliance with any requests made pursuant
to the provisions of this Agreement; (vi) the filing and recording fees and expenses, and reasonable fees and expenses of counsel for providing to Lender all required legal opinions, and other similar expenses incurred in creating and perfecting the
security interests in the Collateral in favor of Lender pursuant to this Agreement and the other Loan Documents; (vii) enforcing or preserving any rights, in response to third party claims or the prosecuting or defending of any action or proceeding
or other litigation, in each case against, under or affecting Borrower, this Agreement, the other Loan Documents, the Collateral or any other security given for the Loan or the Borrower’s interest in the Property; and (viii) enforcing any
obligations of or collecting any payments due from Borrower under this Agreement, the other Loan Documents or with respect to the Property, the Collateral or in connection with any refinancing or restructuring of the credit arrangements provided
under this Agreement in the nature of a “work-out” or of any insolvency or bankruptcy proceedings; provided, however, that Borrower shall not be liable for the payment of any such costs and expenses to the extent the same arise by reason
of the gross negligence, illegal acts, fraud or willful misconduct of Lender.  
  
 (b) Borrower shall indemnify, defend and hold harmless Lender from and against any and all direct, actual liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and
disbursements of any kind or nature whatsoever (including, without limitation, the reasonable fees and disbursements of counsel for Lender in connection with any investigative, administrative or judicial proceeding commenced or threatened, whether
or not Lender shall be designated a party thereto), that may be imposed on, incurred by, or asserted against Lender in any manner relating to or arising out of (i) any breach by Borrower of its obligations under, or any material misrepresentation by
Borrower contained in, this Agreement or the other Loan Documents, or (ii) the use or intended use of the proceeds of the Loan (collectively, the “Indemnified Liabilities”); provided, however, that Borrower shall not have any
obligation to Lender hereunder to the extent that such Indemnified Liabilities arise from the gross negligence, illegal acts, fraud or willful misconduct of Lender, its employees or agents. To the extent that the undertaking to indemnify, defend and
hold harmless set forth in the preceding sentence may be unenforceable because it violates any law or public policy, Borrower shall pay the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction
of all Indemnified Liabilities incurred by Lender. 
  
 (c)
Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and hold harmless the Lender and the Indemnified Parties from and against any and all losses (including, without limitation, reasonable attorneys’ fees and costs
incurred in the investigation, defense, and settlement of losses incurred in correcting any prohibited transaction or in the sale of a prohibited loan, and in obtaining any individual prohibited transaction exemption under ERISA that may be
required, in Lender’s sole discretion) that Lender may incur, directly or indirectly, as a result of a default under Sections 4.1.8 or 5.2.8 hereof. 
  
 (d) INTENTIONALLY OMITTED. 
  

 109 

 (e) INTENTIONALLY OMITTED. 
  
 Section 10.14 Schedules and Exhibits Incorporated 
  
 The Schedules and Exhibits annexed hereto are hereby incorporated herein as a part of this Agreement with the same effect as
if set forth in the body hereof. 
  
 Section 10.15 Offsets,
Counterclaims and Defenses 
  
 Any assignee of Lender’s
interest in and to this Agreement, the Note and the other Loan Documents shall take the same free and clear of all offsets, counterclaims or defenses which are unrelated to such documents which Borrower may otherwise have against any assignor of
such documents, and no such unrelated counterclaim or defense shall be interposed or asserted by Borrower in any action or proceeding brought by any such assignee upon such documents and any such right to interpose or assert any such unrelated
offset, counterclaim or defense in any such action or proceeding is hereby expressly waived by Borrower. 
  
 Section 10.16 No Joint Venture or Partnership; No Third Party Beneficiaries 
  
 (a) Borrower and Lender intend that the relationships created hereunder and under the other Loan Documents be solely that of
borrower and lender. Nothing herein or therein is intended to create a joint venture, partnership, tenancy-in-common, or joint tenancy relationship between Borrower and Lender nor to grant Lender any interest in the Collateral other than that of
pledgor, beneficiary or lender. 
  
 (b) This Agreement and the
other Loan Documents are solely for the benefit of Lender and Borrower and nothing contained in this Agreement or the other Loan Documents shall be deemed to confer upon anyone other than Lender and Borrower any right to insist upon or to enforce
the performance or observance of any of the obligations contained herein or therein. All conditions to the obligations of Lender to make the Loan hereunder are imposed solely and exclusively for the benefit of Lender and no other Person shall have
standing to require satisfaction of such conditions in accordance with their terms or be entitled to assume that Lender will refuse to make the Loan in the absence of strict compliance with any or all thereof and no other Person shall under any
circumstances be deemed to be a beneficiary of such conditions, any or all of which may be freely waived in whole or in part by Lender if, in Lender’s sole discretion, Lender deems it advisable or desirable to do so. 
  
 Section 10.17 Publicity 
  
 All news releases, publicity or advertising by Borrower or its Affiliates
through any media intended to reach the general public which refers to the Loan Documents or the financing evidenced by the Loan Documents, to Lender, Lehman, or any of their Affiliates shall be subject to the prior written approval of Lender.

  
 Section 10.18 Waiver of Marshalling of Assets.

  
 (a) To the fullest extent permitted by law, Borrower, for
itself and its successors and assigns, waives all rights to a marshalling of the assets of Borrower, Borrower’s partners and/or shareholders, as applicable, and others with interests in Borrower, and of the Collateral, or to a sale in inverse
order of alienation in the event of foreclosure of interests in all or any of the Security Instruments, and agrees not to assert any right under any laws pertaining to the marshalling of assets, the sale in inverse order of alienation, the
administration of estates of decedents, or any other matters whatsoever to defeat, reduce or affect the right of Lender under 

  

 110 

 
the Loan Documents to a sale of the Collateral, as applicable, for the collection of the Debt without any prior or different resort for collection or of the
right of Lender to the payment of the Debt, in preference to every other claimant whatsoever. 
  
 Section 10.19 Waiver of Counterclaim 
  
 Borrower hereby waives the right to assert a counterclaim, other than a compulsory counterclaim, in any action or proceeding brought against it by Lender or its agents, but Borrower does not waive its right to assert
any such claim in a separate action, provided that such separate action does not prevent the application of payments to the Debt. 
  
 Section 10.20 Conflict; Construction of Documents; Reliance 
  
 In the event of any conflict between the provisions of this Agreement and any of the other Loan Documents, the provisions of
this Agreement shall control. The parties hereto acknowledge that they were represented by competent counsel in connection with the negotiation, drafting and execution of the Loan Documents and that such Loan Documents shall not be subject to the
principle of construing their meaning against the party which drafted same. Borrower acknowledges that, with respect to the Loan, Borrower shall rely solely on its own judgment and advisors in entering into the Loan without relying in any manner on
any statements, representations or recommendations of Lender or any parent, subsidiary or Affiliate of Lender. Lender shall not be subject to any limitation whatsoever in the exercise of any rights or remedies available to it under any of the Loan
Documents or any other agreements or instruments which govern the Loan by virtue of the ownership by it or any parent, subsidiary or Affiliate of Lender of any equity interest any of them may acquire in Borrower, and Borrower hereby irrevocably
waives the right to raise any defense or take any action on the basis of the foregoing with respect to Lender’s exercise of any such rights or remedies. Borrower acknowledges that Lender engages in the business of real estate financings and
other real estate transactions and investments which may be viewed as adverse to or competitive with the business of Borrower or its Affiliates. 
  
 Section 10.21 Brokers and Financial Advice 
  
 Borrower hereby represents that it has dealt with no financial advisors, brokers, underwriters, placement agents, agents or finders in connection with the
transactions contemplated by this Agreement. Borrower hereby agrees to indemnify, defend and hold Lender harmless from and against any and all claims, liabilities, costs and expenses of any kind (including Lender’s reasonable attorneys’
fees and expenses) in any way relating to or arising from a claim by any Person that such Person acted on behalf of Borrower or Lender in connection with the transactions contemplated herein. The provisions of this Section 10.21 shall survive the
expiration and termination of this Agreement and the payment of the Debt. 
  
 Section 10.22 Prior Agreements 
  
 This Agreement and the other Loan Documents contain the entire agreement of the parties hereto and thereto in respect of the transactions contemplated hereby and thereby, and all prior agreements among or between such parties, whether oral
or written, between Borrower and/or its Affiliates and Lender relating solely to the transactions contemplated hereby are superseded by the terms of this Agreement and the other Loan Documents. 
  

 111 

 Section 10.23 Compliance With Mortgage Loan Documents 
  
 Borrower shall, or shall cause Mortgage Borrower to: (a) pay all principal,
interest and other sums required to be paid by Borrower or Mortgage Borrower under and pursuant to the provisions of the Mortgage Loan Documents; (b) diligently perform and observe all of the terms, covenants and conditions of the Mortgage Loan
Documents on the part of Mortgage Borrower to be performed and observed, unless such performance or observance shall be waived in writing by Mortgage Lender; (c) promptly notify Lender of the giving of any notice by the Mortgage Lender to Mortgage
Borrower or Borrower of any default by Mortgage Borrower in the performance or observance of any of the terms, covenants or conditions of the Mortgage Loan Documents on the part of Mortgage Borrower to be performed or observed and deliver to Lender
a true copy of each such notice, together with any other consents, notices, requests or other written correspondence between Mortgage Borrower and Mortgage Lender; and (d) not enter into or be bound by any Mortgage Loan Documents that are not
approved by Lender. 
  
 Section 10.24 Mortgage Loan
Defaults 
  
 (a) Without limiting the
generality of the other provisions of this Agreement, and without waiving or releasing Borrower from any of Borrower’s obligations hereunder, if there shall occur any default under Mortgage Loan Documents and, in connection therewith, Mortgage
Lender delivers a notice of default asserting that Mortgage Borrower has defaulted in the performance or observance of any term, covenant or condition of the Mortgage Loan Documents (and the same shall have continued beyond any applicable notice or
grace periods, and without regard to any other defenses or offset rights Mortgage Borrower may have against Mortgage Lender), Borrower hereby expressly agrees that Lender shall have the immediate right, with prior notice to Borrower (to the extent
required hereunder), but shall be under no obligation: (i) to pay all or any part of the loan evidenced by the Mortgage Loan Documents, and any other sums, that are then due and payable and to perform any act or take any action on behalf of Borrower
and/or Mortgage Borrower, as may be appropriate, to cause all of the terms, covenants and conditions of the Mortgage Loan Documents on the part of Mortgage Borrower to be performed or observed thereunder to be promptly performed or observed and to
cure or attempt to cure any default under the Mortgage Loan Documents; and (ii) to pay any other amounts and take any other action as Lender, in its sole and absolute discretion, shall deem advisable to protect or preserve the rights and interests
of Lender in the Loan and/or the Collateral. All sums so paid and the costs and expenses incurred by Lender in exercising rights under this Section (including, without limitation, attorneys’ and other professional fees), with interest at the
Default Rate for the period from the date that such costs or expenses were incurred to the date of payment to Lender, shall constitute a portion of the Debt, shall be secured by the pledge under Security Instruments, as applicable, and shall be due
and payable to Lender within 10 days following demand therefor. 
  
 (b) Borrower hereby indemnifies Lender from and against all liabilities, obligations, losses, damages, penalties, assessments, actions, or causes of action, judgments, suits, claims, demands, costs, expenses
(including, without limitation, attorneys’ and other professional fees, whether or not suit is brought, and settlement costs) and disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against Lender as
a result of any action listed in Section 10.24(a), unless Lender or Lender’s agent shall have acted with willful misconduct or gross negligence in the discharge of such action. Lender shall have no obligation to Borrower, Mortgage Borrower or
any other party to make any such payment or performance. No Borrower shall impede, interfere with, hinder or delay, nor shall Borrower cause Mortgage Borrower to impede, interfere with, hinder or delay, any effort or action on the part of Lender to
cure any default or asserted default under the loan evidenced by the Mortgage Loan Documents, or to otherwise protect or preserve Lender’s interests in the Loan and the Collateral following a default or asserted default under the Mortgage Loan
Documents. 
  

 112 

 (c) Any default or breach by Mortgage Borrower under the Mortgage Loan Documents which is
not cured prior to the expiration of any applicable grace, notice or cure period afforded to Mortgage Borrower under the Mortgage Loan Documents, or otherwise afforded to Mortgage Borrower in writing by Mortgage Lender, shall constitute an Event of
Default, without regard to any subsequent payment or performance of any such obligations by Lender. Borrower hereby grants Lender and any person designated by Lender the right to enter upon the Property at any time following the occurrence and
during the continuance of any default beyond all applicable cure periods, or the assertion by Mortgage Lender that a default, beyond all applicable cure periods, has occurred under the Mortgage Loan Documents, for the purpose of taking any such
action or to appear in, defend or bring any action or proceeding to protect Borrower’s, Mortgage Borrower’s and/or Lender’s interest. Lender may take such action as Lender deems reasonably necessary or desirable to carry our the
intents and purposes of this subsection (including, without limitation, communicating with Mortgage Lender with respect to any defaults under the Mortgage Loan Documents), without prior notice to, or consent from, Borrower. Lender shall have no
obligation to complete any cure or attempted cure undertaken or commenced by Lender. 
  
 (d) If Lender shall receive a copy of any notice of default under Mortgage Loan Documents sent by Mortgage Lender to Mortgage Borrower,
such notice shall constitute full protection to Lender for any action taken or omitted to be taken by Lender, in good faith, in reliance thereon, unless Lender or Lender’s agent shall have acted with willful misconduct or gross negligence in
the taking or in failing to take such action. As a material inducement to Lender’s making the Loan, Borrower hereby absolutely and unconditionally releases and waives all claims against Lender arising out of Lender’s exercise of its rights
and remedies provided in this Section, except to the extent that Lender or Lender’s agent shall have acted with willful misconduct or gross negligence in the exercise of such rights and remedies. In the event that Lender makes any payment in
respect of the Mortgage Loan, Lender shall be subrogated to all of the rights of Mortgage Lender under the Mortgage Loan Documents against the Property, in addition to all other rights it may have under the Loan Documents. 
  
 (e) In connection with the exercise of its rights in this
Section, Lender shall have the right at any time to discuss the Property, the Mortgage Loan, the Loan or any other matter directly with Mortgage Lender or Mortgage Lender’s consultants, agents or representatives without notice to or permission
from Borrower, Mortgage Borrower or any other Restricted Party, nor shall Lender have any obligation to disclose such discussions or the contents thereof with Borrower, Mortgage Borrower or any other Restricted Party. 
  
 (f) Any default or breach under the Mortgage Loan Documents
which is cured by Lender after the expiration of any applicable grace, notice or cure period under the Mortgage Loan Documents, shall constitute an immediate Event of Default under this Agreement without any notice, grace or cure period otherwise
applicable under this Agreement. 
  
 (g) In the
event that Lender makes any payment in respect of the Mortgage Loan, Lender shall be subrogated to all of the rights of Mortgage Lender under the Mortgage Loan Documents against the Property, Mortgage Borrower and each other obligor thereunder in
addition to all other rights Lender may have under the Loan Documents or Applicable Law. 
  
 (h) In the event the Lender is required pursuant to the terms of the Intercreditor Agreement to pay over to Mortgage Lender any payment or
distribution of assets, whether in cash, property or securities which had previously been paid to Lender, including, without limitation, any proceeds of the Property previously received by Lender on account of the Loan, which payment or distribution
is applied in respect of the Mortgage Loan, then Borrower agrees that any amount so paid 

  

 113 

 
shall continue to be owing pursuant to the Loan Documents as part of the Debt notwithstanding the prior receipt of such payment by Lender. 
  
 Section 10.25 Mortgage Loan Estoppels 
  
 Borrower shall, or shall cause Mortgage Borrower to, from
time to time, obtain from the Mortgage Lender such certificates of estoppel with respect to compliance by Mortgage Borrower with the terms of the Mortgage Loan Documents as may be reasonably requested by Lender. In the event or to the extent that
Mortgage Lender is not legally obligated to deliver such certificates of estoppel and is unwilling to deliver the same, or is legally obligated to deliver such certificates of estoppel but breaches such obligation, then Borrower shall not be in
breach of this provision so long as Borrower furnishes to Lender an estoppel executed by Borrower and Mortgage Borrower expressly representing to Lender, to the best of their knowledge, the information requested by Lender regarding compliance by
Mortgage Borrower with the terms of the Mortgage Loan Documents. Borrower hereby indemnifies Lender from and against all liabilities, obligations, losses, damages, penalties, assessments, actions, or causes of action, judgments, suits, claims,
demands, costs, expenses (including, without limitation, attorneys’ and other professional fees, whether or not suit is brought and settlement costs) and disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or
asserted against Lender if and to the extent based in whole or in part upon any fact, event, condition, or circumstances relating to the Mortgage Loan which was misrepresented in, or which warrants disclosure to make the representation of such fact,
event condition or circumstance not misleading, and was omitted from such estoppel executed by Borrower, and Mortgage Borrower. 
  
 Section 10.26 No Amendments to Mortgage Loan Documents 
  
 Borrower shall not cause or permit Mortgage Borrower to enter into any amendment or modification of any of the Mortgage Loan Documents
without obtaining the prior written approval of Lender, which approval shall not be unreasonably withheld if such modification, amendment, extension, renewal or replacement does not in Lender’s sole, but reasonable, discretion have an adverse
impact on Lender or the Loan; provided, however that Mortgage Lender and Mortgage Borrower shall have the right to enter into, execute and agree to a modification, amendment, consolidation, spreader, restatement or waiver of any provision of the
Mortgage Loan Documents without obtaining the consent of Lender, provided no such modification, amendment, consolidation, spreader, restatement or wavier shall (i) be a material modification, amendment, extension or replacement of the Mortgage Loan
Documents, (ii) increase the principal amount secured by the mortgage loan under such Mortgage Loan Documents, (iii) increase the interest rate payable under the mortgage loan under such Mortgage Loan Documents, (iv) provide for the payment of any
additional interest, kicker or similar equity feature, (v) modify the maturity of the mortgage loan under such Mortgage Loan Documents other than pursuant to the terms of such Mortgage Loan Documents (except that Mortgage Lender may extend the
maturity date of such mortgage loan in connection with any work-out or other surrender, compromise, release, renewal, or indulgence relating to such mortgage loan), (vi) spread the Lien of such mortgage loan to encumber any additional real property
(except as expressly provided in the Mortgage Loan Documents), (vii) cross-default such mortgage loan with any other indebtedness, (viii) change the amount or timing of amortization of principal under such mortgage loan (except that Mortgage Lender
may change the amortization of principal of such mortgage loan in connection with any work-out or other surrender, compromise, release, renewal, or indulgence relating thereto), (ix) adversely affect in any material respect the rights and interests
of Lender under the Loan Documents. Notwithstanding the foregoing, any amounts funded by Mortgage Lender under the Mortgage Loan Documents as a result of (A) the making of any protective advances or other advances by Mortgage Lender expressly
permitted by the terms of the Mortgage Loan Documents, or (B) interest accruals or accretions and any compounding thereof (including default interest) shall not at any time be deemed to contravene this Section. 
  

 114 

 Section 10.27 Acquisition of the Mortgage Loan 
  
 (a) None of Borrower, Mortgage Borrower, Guarantor or any
Affiliate of any of them shall acquire or agree to acquire the Mortgage Loan, or any portion thereof or any interest therein, or any direct or indirect ownership interest in the holder of the Mortgage Loan, via purchase, transfer, exchange or
otherwise, and any breach or attempted breach of this provision shall constitute an Event of Default hereunder. If, solely by operation of applicable subrogation law, Borrower shall have failed to comply with the foregoing, then Borrower: (i) shall
immediately notify Lender of such failure; (ii) shall cause any and all such prohibited parties acquiring any interest in the Mortgage Loan Documents: (A) not to enforce the Mortgage Loan Documents; and (B) upon the request of Lender, to the extent
any of such prohibited parties has or have the power or authority to do so, to promptly: (1) cancel the promissory note evidencing the mortgage loan pursuant to such Mortgage Loan Documents, (2) reconvey and release the Lien securing such mortgage
loan and any other collateral under the Mortgage Loan Documents, and (3) discontinue and terminate any enforcement proceeding(s) under the Mortgage Loan Documents. 
  
 (b) Borrower hereby expressly covenants and agrees that if, at any time after the date hereof, the Loan and
the Mortgage Loan cease to be under affiliated ownership, and Lender acquires the Mortgage Loan when an Event of Default shall be continuing, then, at Lender’s option, exercised in Lender’s sole and absolute discretion, Lender may elect:
(i) to declare that the Mortgage Loan is in default (which default shall not be subject to any grace, notice or cure periods); and (ii) to accelerate the indebtedness under the Mortgage Loan. 
  
 (c) Lender shall have the right at any time to acquire all
or any portion of the Mortgage Loan or any interest in any holder of, or participant in, the Mortgage Loan without notice or consent of Borrower or any other Restricted Party, in which event Lender shall have and may exercise all rights of the
Mortgage Lender thereunder (to the extent of its interest), including the right (i) to declare that the Mortgage Loan is in default and (ii) to accelerate the Mortgage Loan indebtedness, in accordance with the terms thereof and (iii) to pursue all
remedies against any obligor under the Mortgage Loan Documents. 
  
 Section 10.28 Deed In Lieu of Foreclosure; Borrower not to Acquire Mortgage Loan 
  
 (a) Borrower shall not, nor shall Borrower cause, suffer or permit Mortgage Borrower to, enter into any deed-in-lieu or consensual
foreclosure with or for the benefit of Mortgage Lender or any of its affiliates. Without the express prior written consent of Lender, Borrower shall not, nor shall Borrower cause, suffer or permit Mortgage Borrower to, enter into any consensual sale
or other transaction in connection with the Mortgage Loan which could diminish, modify, terminate, impair or otherwise adversely affect the interests of Lender or Borrower in the Collateral or any portion thereof or any interest therein or of
Mortgage Borrower in the Property or any portion thereof or any interest therein. 
  
 (b) For so long as any amounts in respect of the Loan remain outstanding, neither Borrower nor its Affiliates shall acquire the Mortgage
Loan or any interest therein. 
  
 Section 10.29
Refinancing or Prepayment of the Mortgage Loan 
  
 (a) Subject to the provisions of subsection (b) of this Section, neither Borrower nor Mortgage Borrower shall be required to obtain the consent of Lender to make any partial or full prepayments of amounts owing under the Mortgage Loan.

  

 115 

 (b) Following the end of the Lock-Out Period, neither Borrower nor Mortgage Borrower
shall be required to obtain the consent of Lender to refinance the Mortgage Loan, provided that the Loan is paid in full in accordance with the terms of the Note (including any prepayment premiums, the Additional Interest and other amounts due and
payable to Lender under the Loan Documents). 
  
 (c) Borrower shall cause Mortgage Borrower to obtain the prior written consent of Lender to enter into any refinancing of the Mortgage Loan, as applicable, other than as specified in subsection (b) of this Section, which consent shall not
be unreasonably withheld, conditioned or delayed, provided that any such refinancing: (i) shall be in an amount no greater than the original principal amount of, the Mortgage Loan, as applicable; (ii) shall be evidenced by loan documentation in form
and substance reasonably satisfactory to Lender; (iii) shall be subject to an intercreditor agreement between Lender and such refinancing lender on terms and conditions reasonably satisfactory to Lender; and (iv) satisfies, in full, the debt under
the Mortgage Loan. 
  
 Section 10.30 Independent Approval
Rights. 
  
 Except as may be provided herein
to the contrary (including without limitation, in Section 10.32), but without limiting any requirements in the Loan Documents that Lender not unreasonably withhold its consent or approval, if any action, proposed action or other decision is
consented to or approved by Mortgage Lender, such consent or approval shall not be binding or controlling on Lender. Borrower hereby acknowledges and agrees that (i) the risks of Mortgage Lender in making the Mortgage Loan are different from the
risks of Lender in making the Loan, (ii) in determining whether to grant, deny, withhold or condition any requested consent or approval Mortgage Lender and Lender may reasonably reach different conclusions, and (iii) except as may be expressly
provided herein to the contrary (including, without limitation in Section 10.32 hereof), Lender has an absolute independent right to grant, deny, withhold or condition any requested consent or approval based on its own point of view. 
  
 Section 10.31 Intercreditor Agreement 
  
 Lender contemplates that, subsequent to the date hereof, it
may enter into an intercreditor agreement with Mortgage Lender memorializing their relative rights and obligations with respect to the Mortgage Loan, the Loan, Mortgage Borrower, Borrower and the Property (the “Intercreditor
Agreement”). Borrower hereby acknowledges and agrees that any such Intercreditor Agreement will be solely for the benefit of Lender and Mortgage Lender, and that Borrower and Mortgage Borrower shall not be intended third-party beneficiaries
of any of the provisions therein and shall not be entitled to rely on any of the provisions contained therein. Borrower’s Obligations are and will be independent of such Intercreditor Agreement and shall remain unmodified by the terms and
provisions thereof. 
  
 Section 10.32 Subordination;
Relationship to Mortgage Loan 
  
 (a) If the
Mortgage Loan Documents (or Lender-approved loan documents evidencing or securing a replacement, substitution or refinancing of loan(s) represented thereby), on the one hand, and the Loan Documents, on the other, impose conflicting obligations upon
Borrower and Mortgage Borrower with respect to the maintenance or operation of the Property, the maintenance of insurance, the application of insurance proceeds or condemnation awards, the use and application of Rents and amounts paid or payable
under Leases, leasing standards, Lease approval rights, the handling and application of cash collateral, or any other actions or obligations which would result in a default under the Mortgage Loan Documents if the requirements of the Mortgage Loan
Documents or the holder of the Mortgage Loan are not performed or observed, the provisions of the Mortgage Loan Documents shall control, and Mortgage Borrower’s compliance with the provisions of the Mortgage Loan Documents shall constitute
compliance with the Loan Documents; provided, however, that (i) with respect to 

  

 116 

 
maintenance of insurance, (A) Lender shall have the benefits of the insurance coverage required under Article VI hereof, including, without limitation,
Lender’s being named as a loss payee or an additional insured or otherwise as a beneficiary as provided in Article VI on all insurance policies covering or otherwise affecting the Property and/or the Collateral, (B) such insurance policies
procured pursuant to the Mortgage Loan Documents shall provide insurance coverage equivalent in all material respects to the insurance coverage required by Article VI hereof, and (C) Borrower and Mortgage Borrower shall procure insurance, if any,
required by Lender with respect to the Collateral in accordance with Article VII hereof notwithstanding satisfaction of the requirements of the Mortgage Loan Documents; and (ii) with respect to approval of an Annual Budget, to the extent that
Mortgage Lender, pursuant to its rights under the Mortgage Loan Documents, requires certain expenditures in such Annual Budget, Lender’s approval shall not be required with respect to such expenditures. 
  
 Section 10.33 Intentionally Omitted. 
  
 Section 10.34 Rescission of Payments. 
  
 If at any time all or any part of any payment made by
Borrower or any other Restricted Party in connection with this Agreement or any other Loan Document is rescinded or returned for any reason whatsoever (including the insolvency, bankruptcy or reorganization of Borrower or any other Restricted
Party), then the Obligations of Borrower or such Restricted Party shall, to the extent of the payment rescinded or returned, be deemed to have continued in existence notwithstanding such previous payment, and the Obligations shall continue to be
effective or be reinstated, as the case may be, as to such payment, all as though such previous payment had never been made. 
  
 Section 10.35 Attorney-In-Fact. 
  
 Borrower hereby irrevocably appoints and authorizes Lender, as its attorney-in-fact, which agency is coupled with an interest, to execute
and/or record in Lender’s or Borrower’s name any notices, instruments or documents that Lender deems appropriate to protect Lender’s interest under any of the Loan Documents if Borrower fails to execute and deliver, or cause same to
be executed and delivered, within five (5) Business Days after written request by Lender, provided that Borrower is required to execute and deliver same pursuant to this Agreement or the Loan Documents. 
  
 Section 10.36 Counterparts. 
  
 To facilitate execution, this Agreement may be executed in
as many counterparts as may be convenient or required. It shall not be necessary that the signature of, or on behalf of, each party, or that the signature of all Persons required to bind any party, appear on each counterpart. All counterparts shall
collectively constitute a single document. It shall not be necessary in making proof of this Agreement to produce or account for more than a single counterpart containing the respective signatures of, or on behalf of, each of the parties hereto. Any
signature page to any counterpart may be detached from such counterpart without impairing the legal effect of the signatures thereon and thereafter attached to another counterpart identical thereto except having attached to it additional signature
pages. For purposes hereof, facsimile signatures shall be binding on the parties to this Agreement. 
  
 Section 10.37 Time. 
  
 Time is of the essence of each and every term of this Agreement and the other Loan Documents, except and only to the extent specifically
waived by Lender in writing or otherwise provided herein or in the other Loan Documents. 
  

 117 

 Section 10.38 Amendments Included. 
  
 Definitions contained in this Agreement or any other Loan Documents which identify documents, including this
Agreement or any other Loan Documents, shall be deemed to include all amendments, modifications, supplements, novations, restatements, renewals, and replacements to such documents, and assignments of such documents, which may be entered into from
time to time with Lender’s consent or otherwise in compliance with the provisions of this Agreement. 
  
 Section 10.39 INTENTIONALLY OMITTED 
  
 Section 10.40 Maintenance of the Registry. 
  
 Borrower (or its duly authorized agent) shall maintain or cause to be maintained a registry (the “Registry”) of the ownership of
the Note at its principal office (or the principal office of its duly authorized agent). The Registry shall reflect Lender as the original owner of the Note and shall reflect such subsequent transferees as Borrower (or its duly authorized agent)
shall receive notice of, by delivery to it of a notice of an assignment of the Note, duly executed by the then current owner thereof. Prior to the receipt of such notice of transfer, Borrower (or its duly authorized agent) shall treat the person in
whose name the Note is registered as the owner thereof for the purpose of receiving all payments thereon and for all other purposes. 
  
 [NO FURTHER TEXT ON THIS PAGE] 
  

 118 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their duly
authorized representatives, all as of the day and year first above written. 
  

			
	BORROWER:
	
	 PPRA MEZZ BORROWER, INC.

		
	By:	 	 /s/ Judy L. Hendrick

	 	 	

	 	 	 Name: Judy L. Hendrick
 Title: Vice President

  
  

			
	LENDER:
	
	LEHMAN BROTHERS HOLDINGS INC.
		
	By:	 	 /s/ Joseph J. Flannery

	 	 	

	 	 	 Name: Joseph J. Flannery
 Authorized Signatory

  

			
	 WITH RESPECT TO SECTIONS 9.1 and 9.2 ONLY,

	
	SPONSER:
	
	 WYNDHAM INTERNATIONAL, INC.

		
	By:	 	 /s/ Judy L. Hendrick

	 	 	

	 	 	 Name: Judy L. Hendrick
 Title: Senior Vice President

  

 [SCHEDULES AND EXHIBITS APPEAR IN SEPARATE FILE ON THE SYSTEM]<PAGE>

                                                                     Exhibit 4.5

                                CREDIT AGREEMENT

                          DATED AS OF NOVEMBER 25, 2003

                                      AMONG

                            PATTERSON DENTAL COMPANY,
                                 AS THE COMPANY

           THE SUBSIDIARY BORROWERS FROM TIME TO TIME PARTIES HERETO,

                  THE LENDERS FROM TIME TO TIME PARTIES HERETO,

                       BANK ONE, NA (MAIN OFFICE CHICAGO),
                             AS ADMINISTRATIVE AGENT

                             BANK OF AMERICA, N.A.,
                              AS SYNDICATION AGENT

                                       AND

                                 SUNTRUST BANK,
                         THE NORTHERN TRUST COMPANY, AND
                         U.S. BANK NATIONAL ASSOCIATION,
                             AS DOCUMENTATION AGENTS

================================================================================

                       BANC ONE CAPITAL MARKETS, INC. AND
                         BANC OF AMERICA SECURITIES LLC,
                   AS CO-LEAD ARRANGERS AND JOINT BOOK RUNNERS

================================================================================

                         SIDLEY AUSTIN BROWN & WOOD LLP
                                 Bank One Plaza
                            10 South Dearborn Street
                             Chicago, Illinois 60603

<PAGE>

                                TABLE OF CONTENTS

ARTICLE I    DEFINITIONS.......................................................1
     1.1.    Certain Defined Terms.............................................1
     1.2.    Plural Forms.....................................................21

ARTICLE II   THE CREDITS......................................................21
     2.1.    Term Loan........................................................21
     2.2.    Revolving Loans..................................................22
     2.3.    Swing Line Loans.................................................22
     2.4.    Determination of Dollar Amounts; Required Payments;
             Termination......................................................24
     2.5.    Commitment Fee; Reductions in Aggregate Revolving Loan
             Commitment.......................................................25
     2.6.    Minimum Amount of Each Advance...................................25
     2.7.    Optional Principal Payments......................................25
     2.8.    Method of Selecting Types and Interest Periods for New
             Advances.........................................................26
     2.9.    Conversion and Continuation of Outstanding Advances; No
             Conversion or Continuation of Eurocurrency Advances After
             Default..........................................................26
     2.10.   Method of Borrowing..............................................27
     2.11.   Changes in Interest Rate, etc....................................28
     2.12.   Rates Applicable After Default...................................28
     2.13.   Method of Payment; Non-availability of Original Currency.........28
     2.14.   Advances to be Made in euro......................................29
     2.15.   Noteless Agreement; Evidence of Indebtedness.....................29
     2.16.   Telephonic Notices...............................................30
     2.17.   Interest Payment Dates; Interest and Fee Basis...................31
     2.18.   Notification of Advances, Interest Rates, Prepayments and
             Commitment Reduction.............................................31
     2.19.   Lending Installations............................................31
     2.20.   Non-Receipt of Funds by the Agent................................32
     2.21.   Market Disruption................................................32
     2.22.   Judgment Currency................................................33
     2.23.   Replacement of Lender............................................33
     2.24.   Facility LCs.....................................................34
     2.25.   Subsidiary Borrowers.............................................39

ARTICLE III  YIELD PROTECTION; TAXES..........................................39
     3.1.    Yield Protection.................................................39
     3.2.    Changes in Capital Adequacy Regulations..........................40
     3.3.    Availability of Types of Advances................................41
     3.4.    Funding Indemnification..........................................41
     3.5.    Taxes............................................................41
     3.6.    Lender Statements; Survival of Indemnity.........................43
     3.7.    Alternative Lending Installation.................................43

ARTICLE IV   CONDITIONS PRECEDENT.............................................44

                                        i

<PAGE>

     4.1.    Effectiveness of Commitments.....................................44
     4.2.    Each Credit Extension............................................46
     4.3.    Initial Advance to Each New Subsidiary Borrower..................46

ARTICLE V    REPRESENTATIONS AND WARRANTIES...................................47
     5.1.    Existence and Standing...........................................47
     5.2.    Authorization and Validity.......................................47
     5.3.    No Conflict; Government Consent..................................47
     5.4.    Financial Statements.............................................48
     5.5.    Material Adverse Change..........................................48
     5.6.    Taxes............................................................48
     5.7.    Litigation and Contingent Obligations............................48
     5.8.    Subsidiaries.....................................................49
     5.9.    ERISA............................................................49
     5.10.   Accuracy of Information..........................................49
     5.11.   Regulation U.....................................................49
     5.12.   Material Agreements..............................................49
     5.13.   Compliance With Laws.............................................50
     5.14.   Ownership of Properties..........................................50
     5.15.   Plan Assets; Prohibited Transactions.............................50
     5.16.   Environmental Matters............................................50
     5.17.   Investment Company Act...........................................50
     5.18.   Public Utility Holding Company Act...............................50
     5.19.   Insurance........................................................50
     5.20.   Solvency.........................................................51
     5.21.   No Default or Unmatured Default..................................51
     5.22.   Reportable Transaction...........................................51
     5.23.   Post-Retirement Benefits.........................................51
     5.24.   AbilityOne Acquisition...........................................51

ARTICLE VI   COVENANTS........................................................51
     6.1.    Financial Reporting..............................................51
     6.2.    Use of Proceeds..................................................53
     6.3.    Notice of Default................................................53
     6.4.    Conduct of Business..............................................53
     6.5.    Taxes............................................................54
     6.6.    Insurance........................................................54
     6.7.    Compliance with Laws.............................................54
     6.8.    Maintenance of Properties........................................54
     6.9.    Inspection; Keeping of Books and Records.........................54
     6.10.   Dividends........................................................55
     6.11.   Merger...........................................................55
     6.12.   Sale of Assets...................................................55
     6.13.   Investments and Acquisitions.....................................56
     6.14.   Indebtedness.....................................................59
     6.15.   Liens............................................................60
     6.16.   Affiliates.......................................................62

                                       ii

<PAGE>

     6.17.   Financial Contracts..............................................63
     6.18.   Subsidiary Covenants.............................................63
     6.19.   Contingent Obligations...........................................63
     6.20.   Leverage Ratio...................................................63
     6.21.   Interest Expense Coverage Ratio..................................63
     6.22.   Minimum Consolidated Net Worth...................................64
     6.23.   Additional Subsidiary Guarantors.................................64
     6.24.   Foreign Subsidiary Investments...................................64
     6.25.   Subordinated Indebtedness........................................64
     6.26.   Sale of Accounts.................................................64

ARTICLE VII  DEFAULTS.........................................................65

ARTICLE VIII ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES...................68
     8.1.    Acceleration.....................................................68
     8.2.    Amendments.......................................................69
     8.3.    Preservation of Rights...........................................70

ARTICLE IX   GENERAL PROVISIONS...............................................70
     9.1.    Survival of Representations......................................70
     9.2.    Governmental Regulation..........................................70
     9.3.    Headings.........................................................70
     9.4.    Entire Agreement.................................................70
     9.5.    Several Obligations; Benefits of this Agreement..................70
     9.6.    Expenses; Indemnification........................................71
     9.7.    Numbers of Documents.............................................72
     9.8.    Accounting.......................................................72
     9.9.    Severability of Provisions.......................................72
     9.10.   Nonliability of Lenders..........................................72
     9.11.   Confidentiality..................................................73
     9.12.   Lenders Not Utilizing Plan Assets................................73
     9.13.   Nonreliance......................................................73
     9.14.   Disclosure.......................................................74
     9.15.   Performance of Obligations.......................................74
     9.16.   Relations Among Lenders..........................................74
     9.17.   USA Patriot Act Notification.....................................75
             IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A
             NEW ACCOUNT......................................................75

ARTICLE X    THE AGENT........................................................75
     10.1.   Appointment; Nature of Relationship..............................75
     10.2.   Powers...........................................................76
     10.3.   General Immunity.................................................76
     10.4.   No Responsibility for Loans, Recitals, etc.......................76
     10.5.   Action on Instructions of Lenders................................76
     10.6.   Employment of Agents and Counsel.................................76
     10.7.   Reliance on Documents; Counsel...................................77

                                       iii

<PAGE>

     10.8.   Agent's Reimbursement and Indemnification........................77
     10.9.   Notice of Default................................................77
     10.10.  Rights as a Lender...............................................78
     10.11.  Lender Credit Decision...........................................78
     10.12.  Successor Agent..................................................78
     10.13.  Agent and Arranger Fees..........................................79
     10.14.  Delegation to Affiliates.........................................79
     10.15.  No Duties Imposed on Syndication Agents, Documentation
             Agents or Arrangers..............................................79

ARTICLE XI   SETOFF; RATABLE PAYMENTS.........................................79
     11.1.   Setoff...........................................................79
     11.2.   Ratable Payments.................................................79

ARTICLE XII  BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS................80
     12.1.   Successors and Assigns; Designated Lenders.......................80
     12.2.   Participations...................................................82
     12.3.   Assignments......................................................83
     12.4.   Dissemination of Information.....................................85
     12.5.   Tax Certifications...............................................85

ARTICLE XIII NOTICES..........................................................85
     13.1.   Notices; Effectiveness; Electronic Communication.................85
     13.2.   Change of Address, Etc...........................................86

ARTICLE XIV  COUNTERPARTS; INTEGRATION; EFFECTIVENESS; ELECTRONIC
             EXECUTION........................................................86
     14.1.   Counterparts; Effectiveness......................................86
     14.2.   Electronic Execution of Assignments..............................86

ARTICLE XV   CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY
             TRIAL............................................................87
     15.1    CHOICE OF LAW....................................................87
     15.2    CONSENT TO JURISDICTION..........................................87
     15.3    WAIVER OF JURY TRIAL.............................................87

ARTICLE XVI  CO-BORROWER PROVISIONS...........................................87
     16.1.   Appointment......................................................87
     16.2.   Separate Actions.................................................88
     16.3.   Co-Borrower Obligations Absolute and Unconditional...............88
     16.4.   Waivers and Acknowledgements.....................................89
     16.5.   Contribution Among Borrowers.....................................90
     16.6.   Subrogation......................................................90
     16.7.   Subordination....................................................90

                                       iv

<PAGE>

                                    SCHEDULES
                                    ---------

Commitment Schedule

Pricing Schedule

                                    EXHIBITS
                                    --------

Exhibit E-1  -  Form of Promissory Note for Term Loan (if requested)

Exhibit E-2  -  Form of Promissory Note for Revolving Loan (if requested)

                                       v

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                                CREDIT AGREEMENT

     This Credit Agreement, dated as of November 25, 2003, is entered into by
and among Patterson Dental Company, a Minnesota corporation, as the Company, the
Subsidiary Borrowers from time to time parties hereto, the Lenders and Bank One,
NA, a national banking association having its principal office in Chicago,
Illinois, as Administrative Agent. The parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

     1.1.   Certain Defined Terms. As used in this Agreement:

     "AbilityOne" means AbilityOne Products Corp., a Delaware corporation.

     "AbilityOne Acquisition" means the acquisition by the Company or a
Subsidiary or Subsidiaries of the Company of all of the capital stock of
AbilityOne on the terms and conditions set forth in the AbilityOne Acquisition
Agreement.

     "AbilityOne Acquisition Agreement" means that certain Agreement and Plan of
Merger dated as of August 15, 2003 by and among the Company, RETEP, Inc.,
AbilityOne Products Corp., and AbilityOne II, L.L.C., as representative of the
company stockholders, as in effect on September 12, 2003 and without giving
effect to any subsequent amendment or modification thereto.

     "AbilityOne Corporation" means AbilityOne Corporation, a Michigan
corporation.

     "Accounting Changes" is defined in Section 9.8 hereof.

     "Accounts" means the Company's or a Subsidiary's right to the payment of
money from the sale, lease or other disposition of goods or other assets by the
Company or a Subsidiary, a rendering of services by the Company or a Subsidiary,
a loan by the Company or a Subsidiary, the overpayment of taxes or other
liabilities of the Company, or otherwise, however such right to payment may be
evidenced, together with all other rights and interests (including all liens and
security interests) that the Company or Subsidiary may at any time have against
any account debtor or other party obligated thereon or against any of the
property of such account debtor or other party.

     "Acquisition" means any transaction, or any series of related transactions,
consummated on or after the Closing Date, by which the Company or any of its
Subsidiaries (i) acquires any going concern business or all or substantially all
of the assets of any Person, or division thereof, whether through purchase of
assets, merger or otherwise or (ii) directly or indirectly acquires from one or
more Persons (in one transaction or as the most recent transaction in a series
of transactions) at least a majority (in number of votes) of the securities of a
corporation which have ordinary voting power for the election of directors
(other than securities having such power only

<PAGE>

by reason of the happening of a contingency) or a majority (by percentage of
voting power) of the outstanding ownership interests of a partnership or limited
liability company of any Person.

     "Advance" means a borrowing hereunder consisting of the aggregate amount of
the several Revolving Loans or Term Loans, as the case may be, (i) made by some
or all of the Lenders on the same Borrowing Date, or (ii) converted or continued
by the Lenders on the same date of conversion or continuation, consisting, in
either case, of the aggregate amount of the several Loans of the same Type and,
in the case of Eurocurrency Loans, in the same Agreed Currency and for the same
Interest Period. The term "Advance" shall include Swing Line Loans unless
otherwise expressly provided.

     "Affected Lenders" is defined in Section 2.23.

     "Affiliate" of any Person means any other Person directly or indirectly
controlling, controlled by or under common control with such Person. A Person
shall be deemed to control another Person if the controlling Person is the
"beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act
of 1934) of 10% or more of any class of voting securities (or other ownership
interests) of the controlled Person or possesses, directly or indirectly, the
power to direct or cause the direction of the management or policies of the
controlled Person, whether through ownership of voting securities, by contract
or otherwise.

     "Agent" means Bank One in its capacity as contractual representative of the
Lenders pursuant to Article X, and not in its individual capacity as a Lender,
as Administrative Agent, and any successor Agent appointed pursuant to Article
X.

     "Aggregate Outstanding Revolving Credit Exposure" means, at any time, the
aggregate of the Outstanding Revolving Credit Exposure of all the Lenders.

     "Aggregate Revolving Loan Commitment" means the aggregate of the Revolving
Loan Commitments of all the Lenders, as may be increased or reduced from time to
time pursuant to the terms hereof. The initial Aggregate Revolving Loan
Commitment is Two Hundred Million and 00/100 Dollars ($200,000,000).

     "Agreed Currencies" means (i) Dollars, (ii) so long as such currencies
remain Eligible Currencies, British Pounds Sterling, Canadian Dollars and euro,
and (iii) any other Eligible Currency which the applicable Borrower requests the
Agent to include as an Agreed Currency hereunder and which is acceptable to all
of the Lenders. For the purposes of this definition, each of the specific
currencies referred to in clause (ii) (except for euro), above, shall mean and
be deemed to refer to the lawful currency of the jurisdiction referred to in
connection with such currency, e.g., "Canadian Dollars" means the lawful
currency of Canada.

     "Agreement" means this Credit Agreement, as it may be amended, restated,
supplemented or otherwise modified and as in effect from time to time.

     "Agreement Accounting Principles" means generally accepted accounting
principles as in effect in the United States from time to time, applied in a
manner consistent with that used in preparing the financial statements of the
Company referred to in Section 5.4; provided, however, that except as provided
in Section 9.8, with respect to the calculation of the financial covenants

                                        2

<PAGE>

set forth in Sections 6.20, 6.21 and 6.22 (and the defined terms used in such
Sections), "Agreement Accounting Principles" means generally accepted accounting
principles as in effect in the United States as of the Closing Date, applied in
a manner consistent with that used in preparing the financial statements of the
Company referred to in Section 5.4 hereof.

     "Alternate Base Rate" means, for any day, a fluctuating rate of interest
per annum equal to the higher of (i) the Prime Rate for such day and (ii) the
sum of (a) the Federal Funds Effective Rate for such day and (b) one-half of one
percent (0.5%) per annum.

     "Applicable Fee Rate" means, with respect to the Commitment Fee at any
time, the percentage rate per annum which is applicable at such time with
respect to such fee as set forth in the Pricing Schedule.

     "Applicable Margin" means, with respect to Advances of any Type at any
time, the percentage rate per annum which is applicable at such time with
respect to Advances of such Type as set forth in the Pricing Schedule.

     "Approved Fund" means any Fund that is administered or managed by (i) a
Lender, (ii) an Affiliate of a Lender or (iii) an entity or an Affiliate of an
entity that administers or manages a Lender.

     "Approximate Equivalent Amount" of any currency with respect to any amount
of Dollars shall mean the Equivalent Amount of such currency with respect to
such amount of Dollars on or as of such date, rounded up to the nearest amount
of such currency as determined by the Agent from time to time.

     "Arrangers" means, collectively, Banc One Capital Markets, Inc., a Delaware
corporation, and its successors, and Banc of America Securities LLC, and its
successors, in their capacities as Co-Lead Arrangers and Joint Book Runners.

     "Article" means an article of this Agreement unless another document is
specifically referenced.

     "Assignment Agreement" is defined in Section 12.3.1.

     "Assumption Letter" means a letter of a Domestic Subsidiary that is a
Wholly-Owned Subsidiary of the Company addressed to the Agent and the Lenders,
acknowledged by the Agent and consented to by each then existing Borrower, in
substantially the form of Exhibit H hereto, pursuant to which such Subsidiary
agrees to become a "Subsidiary Borrower" and agrees to be bound by the terms and
conditions hereof.

     "Authorized Officer" means, for any Person, any of the chief executive
officer, president, chief operating officer, chief financial officer, treasurer
or assistant treasurer of such Person, acting singly.

     "Available Aggregate Revolving Loan Commitment" means, at any time, the
Aggregate Revolving Loan Commitment then in effect minus the Aggregate
Outstanding Revolving Credit Exposure at such time.

                                        3

<PAGE>

     "Bank One" means Bank One, NA, a national banking association having its
principal office in Chicago, Illinois, in its individual capacity, and its
successors.

     "Borrower" means any of the Company or any of the Subsidiary Borrowers, and
"Borrowers" shall mean the Company and the Subsidiary Borrowers.

     "Borrowing Date" means a date on which an Advance is made hereunder.

     "Borrowing Notice" is defined in Section 2.8.

     "Business Day" means (i) with respect to any borrowing, payment or rate
selection of Eurocurrency Advances, a day (other than a Saturday or Sunday) on
which banks generally are open in Chicago, Illinois for the conduct of
substantially all of their commercial lending activities, interbank wire
transfers can be made on the Fedwire system and dealings in Dollars and the
other Agreed Currencies are carried on in the London interbank market (and, if
the Advances which are the subject of such borrowing, payment or rate selection
are denominated in euro, a day upon which such clearing system as is determined
by the Agent to be suitable for clearing or settlement of euro is open for
business) and (ii) for all other purposes, a day (other than a Saturday or
Sunday) on which banks generally are open in Chicago, Illinois for the conduct
of substantially all of their commercial lending activities and interbank wire
transfers can be made on the Fedwire system.

     "Capitalized Lease" of a Person means any lease of Property by such Person
as lessee which would be capitalized on a balance sheet of such Person prepared
in accordance with Agreement Accounting Principles.

     "Capitalized Lease Obligations" of a Person means the amount of the
obligations of such Person under Capitalized Leases which would be shown as a
liability on a balance sheet of such Person prepared in accordance with
Agreement Accounting Principles.

     "Cash Equivalent Investments" means (i) short-term obligations of, or fully
guaranteed by, the United States of America, (ii) commercial paper rated A-1 or
better by S&P or P-1 or better by Moody's, (iii) demand deposit accounts
maintained in the ordinary course of business, (iv) certificates of deposit
issued by and time deposits with commercial banks (whether domestic or foreign)
having capital and surplus in excess of $100,000,000, and (v) money market funds
investing primarily in assets of the type described in clauses (i) and (ii) of
this definition; provided in each case that the same provides for payment of
both principal and interest (and not principal alone or interest alone) and is
not subject to any contingency regarding the payment of principal or interest.

     "Change in Control" means (i) the acquisition by any Person, or two or more
Persons acting in concert, of beneficial ownership (within the meaning of Rule
13d-3 of the SEC under the Securities Exchange Act of 1934) of 30% or more of
the outstanding shares of voting stock of the Company; (ii) other than pursuant
to a transaction otherwise permitted under this Agreement, the Company shall
cease to own, directly or indirectly and free and clear of all Liens or other
encumbrances, all of the outstanding shares of voting stock of the Subsidiary
Borrowers and the other Guarantors on a fully diluted basis; (iii) the majority
of the Board of Directors of any Borrower fails to consist of Continuing
Directors or (iv) any "Change of Control" (or similar

                                        4

<PAGE>

term) under (and as defined in) the Note Purchase Agreement or the Senior Notes
shall have occurred.

     "Closing Date" means November 25, 2003.

     "Code" means the Internal Revenue Code of 1986, as amended, reformed or
otherwise modified from time to time, and any rule or regulation issued
thereunder.

     "Collateral Shortfall Amount" is defined in Section 8.1.

     "Commitment Fee" is defined in Section 2.5.1.

     "Commitment Schedule" means the Schedule identifying each Lender's
Revolving Loan Commitment and Term Loan Commitment as of the Closing Date
attached hereto and identified as such.

     "Company" means Patterson Dental Company, a Minnesota corporation, and its
permitted successors and assigns (including, without limitation, a debtor in
possession on its behalf).

     "Computation Date" is defined in Section 2.4.1.

     "Consolidated Adjusted EBITDA" means, as to any Person for any period, the
sum of Consolidated EBIT for such period plus consolidated depreciation and
amortization for such period. For Persons acquired by the Company or any
Subsidiary during the relevant measurement period, their EBITDA results will be
included in the calculation of Consolidated Adjusted EBITDA as if those Persons
were owned by the Company or such Subsidiary for the entire reporting period.
Consolidated Adjusted EBITDA will be calculated on a rolling four-quarter basis.

     "Consolidated Adjusted Net Income" means, as to any Person for any period,
the Consolidated Net Income of such Person, provided that, for Persons acquired
by the Company or any Subsidiary during the relevant measurement period, their
Consolidated Net Income will be included in the calculation of Consolidated
Adjusted Net Income as if those Persons were owned by the Company or such
Subsidiary for the entire reporting period. Consolidated Adjusted Net Income
will be calculated on a rolling four-quarter basis.

     "Consolidated EBIT" means, as to any Person and with reference to any
period, Consolidated Net Income plus, to the extent deducted from revenues in
determining Consolidated Net Income, (i) Consolidated Interest Expense, and (ii)
expense for federal, state, local and foreign income and franchise taxes paid or
accrued, all calculated for such Person and its Subsidiaries on a consolidated
basis.

     "Consolidated Interest Expense" means, as to any Person and with reference
to any period, the interest expense of such Person and its Subsidiaries
calculated on a consolidated basis for such period including, without
limitation, such interest expense as may be attributable to capitalized leases,
receivables transaction financing costs, the discount or implied interest

                                        5

<PAGE>

component of off-balance sheet liabilities, all commissions, discounts and other
fees and charges owed with respect to Letters of Credit and net mark-to-market
exposure.

     "Consolidated Net Income" means as to any Person and with reference to any
period, the net income (or loss) of such Person and its Subsidiaries calculated
on a consolidated basis for such period, excluding any non-cash charges or gains
which are unusual, non-recurring or extraordinary.

     "Consolidated Net Worth" means, as of any date of determination, the
consolidated total stockholders' equity (including capital stock, additional
paid-in capital and retained earnings) of the Company and its Subsidiaries
determined in accordance with Agreement Accounting Principles.

     "Consolidated Total Debt" means (i) all indebtedness of the Company and its
Subsidiaries, on a consolidated basis, reflected on a balance sheet prepared in
accordance with Agreement Accounting Principles, plus, without duplication (ii)
the face amount of all outstanding Letters of Credit in respect of which the
Company or any Subsidiary has any reimbursement obligation and the principal
amount of all Contingent Obligations of the Company and its Subsidiaries, plus
Capitalized Lease Obligations, plus obligations arising from the sale of
accounts receivable and other forms of off-balance sheet financing, including
Off-Balance Sheet Liabilities.

     "Contingent Obligation" of a Person means any agreement, undertaking or
arrangement by which such Person assumes, guarantees, endorses, contingently
agrees to purchase or provide funds for the payment of, or otherwise becomes or
is contingently liable upon, the obligation or liability of any other Person, or
agrees to maintain the net worth or working capital or other financial condition
of any other Person, or otherwise assures any creditor of such other Person
against loss, including, without limitation, any comfort letter, operating
agreement, take-or-pay contract, application for a Letter of Credit or the
obligations of any such Person as general partner of a partnership with respect
to the liabilities of the partnership.

     "Continuing Director" means, with respect to any Person as of any date of
determination, any member of the board of directors of such Person who (i) was a
member of such board of directors on the Closing Date, or (ii) was nominated for
election or elected to such board of directors with the approval of the required
majority of the Continuing Directors who were members of such board at the time
of such nomination or election; provided that if any individual who is so
elected or nominated in connection with a merger, consolidation, acquisition or
similar transaction and who was not a Continuing Director prior thereto,
together with all other individuals so elected or nominated in connection with
such merger, consolidation, acquisition or similar transaction who were not
Continuing Directors prior thereto, constitute a majority of the members of the
board of directors of such Person, such individual shall not be a Continuing
Director.

     "Controlled Group" means all members of a controlled group of corporations
or other business entities and all trades or businesses (whether or not
incorporated) under common control which, together with the Company or any of
its Subsidiaries, are treated as a single employer under Section 414 of the
Code.

                                        6

<PAGE>

     "Conversion/Continuation Notice" is defined in Section 2.9.

     "Credit Extension" means the making of an Advance or the issuance of a
Facility LC hereunder.

     "Credit Extension Date" means the Borrowing Date for an Advance or the
issuance date for a Facility LC.

     "Credit Party" means, collectively, the Borrowers and each of the
Guarantors.

     "Default" means an event described in Article VII.

     "Designated Lender" means, with respect to each Designating Lender, each
Eligible Designee designated by such Designating Lender pursuant to Section
12.1.2.

     "Designating Lender" means, with respect to each Designated Lender, the
Lender that designated such Designated Lender pursuant to Section 12.1.2.

     "Designation Agreement" is defined in Section 12.1.2.

     "Disqualified Stock" means any preferred or other capital stock that, by
its terms (or by the terms of any security into which it is convertible or for
which it is exchangeable), or upon the happening of any event, matures or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or
redeemable at the option of the holder thereof, in whole or in part, on or prior
to the date that is ninety-one (91) days after the later of (i) the Revolving
Loan Termination Date and (ii) the Term Loan Maturity Date.

     "Dollar Amount" of any currency at any date shall mean (i) the amount of
such currency if such currency is Dollars or (ii) the Equivalent Amount if such
currency is any Eligible Currency other than Dollars.

     "Dollar" and "$" means the lawful currency of the United States of America.

     "Domestic Subsidiary" means any Subsidiary of any Person that is not a
Foreign Subsidiary.

     "Eligible Currency" means any currency other than Dollars (i) that is
readily available, (ii) that is freely traded, (iii) in which deposits are
customarily offered to banks in the London interbank market, (iv) which is
convertible into Dollars in the international interbank market and (v) as to
which an Equivalent Amount may be readily calculated. If, after the designation
by the Lenders of any Eligible Currency as an Agreed Currency, (x) currency
control or other exchange regulations are imposed in the country in which such
currency is issued with the result that different types of such currency are
introduced, (y) such currency is, in the determination of the Agent, no longer
readily available or freely traded or (z) in the determination of the Agent, an
Equivalent Amount of such currency is not readily calculable, the Agent shall
promptly notify the Lenders and the Company, and such currency shall no longer
be an Agreed Currency until such time as all of the Lenders agree to reinstate
such currency as an Agreed Currency and promptly, but in any event within five
Business Days of receipt of such notice from the Agent,

                                        7

<PAGE>

the Borrowers shall repay all Loans in such affected currency or convert such
Loans into Loans in Dollars or another Agreed Currency, subject to the other
terms set forth in Article II.

     "Eligible Designee" means a special purpose corporation, partnership,
trust, limited partnership or limited liability company that is administered by
the respective Designating Lender or an Affiliate of such Designating Lender and
(i) is organized under the laws of the United States of America or any state
thereof, (ii) is engaged primarily in making, purchasing or otherwise investing
in commercial loans in the ordinary course of its business and (iii) issues (or
the parent of which issues) commercial paper rated at least A-1 or the
equivalent thereof by S&P or P-1 or the equivalent thereof by Moody's.

     "Environmental Laws" means any and all applicable federal, state, local and
foreign statutes, laws, judicial decisions, regulations, ordinances, rules,
judgments, orders, decrees, plans, injunctions, permits, concessions, grants,
franchises, licenses, agreements and other governmental restrictions relating to
(i) the protection of the environment, (ii) the effect of the environment on
human health, (iii) emissions, discharges or releases of pollutants,
contaminants, hazardous substances or wastes into surface water, ground water or
land, or (iv) the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of pollutants, contaminants, hazardous
substances or wastes or the clean-up or other remediation thereof.

     "Equivalent Amount" of any Eligible Currency with respect to any amount of
Dollars at any date shall mean the equivalent in such currency of such amount of
Dollars, calculated on the basis of the arithmetical mean of the buy and sell
spot rates of exchange of the Agent for such other currency at 11:00 a.m.,
London time, on the date on or as of which such amount is to be determined.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and any rules or regulations promulgated thereunder.

     "euro" means the euro referred to in Council Regulation (EC) No. 1103/97
dated June 17, 1997 passed by the Council of the European Union, or, if
different, the then lawful currency of the member states of the European Union
that participate in the third stage of Economic and Monetary Union.

     "Eurocurrency Advance" means an Advance which, except as otherwise provided
in Section 2.12, bears interest at the applicable Eurocurrency Rate.

     "Eurocurrency Loan" means a Revolving Loan which, except as otherwise
provided in Section 2.12, bears interest at the applicable Eurocurrency Rate.

     "Eurocurrency Payment Office" of the Agent shall mean, for each of the
Agreed Currencies, the office, branch, affiliate or correspondent bank of the
Agent specified as the "Eurocurrency Payment Office" for such currency in
Schedule 1.1.1 hereto or such other office, branch, affiliate or correspondent
bank of the Agent as it may from time to time specify to the Borrowers and each
Lender as its Eurocurrency Payment Office.

     "Eurocurrency Rate" means, with respect to a Eurocurrency Advance for the
relevant Interest Period, the sum of (i) the quotient of (a) the Eurocurrency
Reference Rate applicable to

                                        8

<PAGE>

such Interest Period, divided by (b) one minus the Reserve Requirement
(expressed as a decimal) applicable to such Interest Period, if any, plus (ii)
the then Applicable Margin, changing as and when the Applicable Margin changes.

     "Eurocurrency Reference Rate" means, with respect to a Eurocurrency Advance
for the relevant Interest Period, the applicable British Bankers' Association
LIBOR rate for deposits in the applicable Agreed Currency as reported by any
generally recognized financial information service as of 11:00 a.m. (London
time) two (2) Business Days prior to the first day of such Interest Period, and
having a maturity equal to such Interest Period, provided that, if no such
British Bankers' Association LIBOR rate is available to the Agent, the
applicable Eurocurrency Reference Rate for the relevant Interest Period shall
instead be the rate determined by the Agent to be the rate at which Bank One or
one of its affiliate banks offers to place deposits in the applicable Agreed
Currency with first-class banks in the London interbank market at approximately
11:00 a.m. (London time) two (2) Business Days prior to the first day of such
Interest Period, in the approximate amount of Bank One's relevant Eurocurrency
Loan and having a maturity equal to such Interest Period.

     "Excluded Taxes" means, in the case of each Lender or applicable Lending
Installation and the Agent, taxes imposed on its overall net income, and
franchise taxes imposed on it, by (i) the jurisdiction under the laws of which
such Lender or the Agent is incorporated or organized or any political
combination or subdivision or taxing authority thereof or (ii) the jurisdiction
in which the Agent's or such Lender's principal executive office or such
Lender's applicable Lending Installation is located.

     "Exhibit" refers to an exhibit to this Agreement, unless another document
is specifically referenced.

     "Existing Credit Agreement" means that certain Bridge Credit Agreement,
dated as of September 12, 2003, by and among the Company, the lenders parties
thereto, and Banc One Mezzanine Corporation, as Administrative Agent, as the
same has been amended, restated, supplemented or otherwise modified from time to
time.

     "Facility LC" is defined in Section 2.24.1.

     "Facility LC Application" is defined in Section 2.24.3.

     "Facility LC Collateral Account" is defined in Section 2.24.11.

     "Federal Funds Effective Rate" means, for any day, an interest rate per
annum equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published for such day (or, if such day is not a
Business Day, for the immediately preceding Business Day) by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day which is a
Business Day, the average of the quotations at approximately 10:00 a.m. (Chicago
time) on such day on such transactions received by the Agent from three (3)
Federal funds brokers of recognized standing selected by the Agent in its sole
discretion.

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<PAGE>

     "Floating Rate" means, for any day, a rate per annum equal to the sum of
(i) the Alternate Base Rate for such day, changing when and as the Alternate
Base Rate changes plus (ii) the then Applicable Margin, changing as and when the
Applicable Margin changes.

     "Floating Rate Advance" means an Advance which, except as otherwise
provided in Section 2.12, bears interest at the Floating Rate.

     "Floating Rate Loan" means a Loan which, except as otherwise provided in
Section 2.12, bears interest at the Floating Rate.

     "Foreign Subsidiary" means (i) any Subsidiary of any Person that is not
organized under the laws of a jurisdiction located in the United States of
America and (ii) any Subsidiary of a Person described in clause (i) hereof that
is organized under the laws of a jurisdiction located in the United States of
America.

     "Foreign Subsidiary Investment" means the sum, without duplication, of (i)
the aggregate outstanding principal amount of all intercompany loans made on or
after the Closing Date from any Credit Party to any Foreign Subsidiary; (ii) all
outstanding Investments made on or after the Closing Date by any Credit Party in
any Foreign Subsidiary; and (iii) an amount equal to the net benefit derived by
the Foreign Subsidiaries resulting from any non-arm's-length transactions, or
any other transfer of assets conducted, in each case entered into on or after
the Closing Date, between any Credit Party, on the one hand, and such Foreign
Subsidiaries, on the other hand, other than (a) transactions in the ordinary
course of business, (b) in respect of legal, accounting, reporting, listing and
similar administrative services provided by any Credit Party to any such Foreign
Subsidiary in the ordinary course of business consistent with past practice and
(c) the AbilityOne Acquisition.

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

     "Guarantor" means each of the Company's Material Domestic Subsidiaries
which become Guarantors in satisfaction of the provisions of Section 6.23, in
each case, together with their respective permitted successors and assigns.

     "Guaranty" means the Guaranty, in substantially the form of Exhibit I,
entered into by each Guarantor in favor of the Agent for the benefit of the
Holders of Obligations, as the same may be amended, restated, supplemented or
otherwise modified from time to time.

     "Holders of Obligations" means the holders of the Obligations and the Rate
Management Obligations and shall refer to (i) each Lender in respect of its
Loans, (ii) the LC Issuers in respect of Reimbursement Obligations, (iii) the
Agent, the Lenders and the LC Issuers in respect of all other present and future
obligations and liabilities of the Company or any of its Domestic Subsidiaries
of every type and description arising under or in connection with this Agreement
or any other Loan Document, (iv) each Person benefiting from indemnities made by
the Company or any Subsidiary hereunder or under other Loan Documents in respect
of the obligations and liabilities of the Company or such Subsidiary to such
Person, (v) each Lender, in respect of all Rate Management Obligations owing to
any Person in such Person's capacity as exchange party

                                       10

<PAGE>

or counterparty under any Rate Management Transaction so long as such Person is
(or, at the time such Person entered into such Rate Management Transaction, was)
a Lender or an affiliate of a Lender, and (vi) their respective permitted
successors, transferees and assigns.

     "Indebtedness" of a Person means, at any time, without duplication, such
Person's (i) obligations for borrowed money, (ii) obligations representing the
deferred purchase price of Property or services (other than current accounts
payable arising in the ordinary course of such Person's business payable on
terms customary in the trade), (iii) obligations, whether or not assumed,
secured by Liens or payable out of the proceeds or production from Property now
or hereafter owned or acquired by such Person, (iv) obligations which are
evidenced by notes, bonds, debentures, acceptances, or other instruments, (v)
obligations to purchase securities or other Property arising out of or in
connection with the sale of the same or substantially similar securities or
Property, (vi) Capitalized Lease Obligations, (vii) Contingent Obligations of
such Person, (viii) reimbursement obligations under letters of credit, bankers'
acceptances, surety bonds and similar instruments (ix) Off-Balance Sheet
Liabilities, (x) obligations under Sale and Leaseback Transactions, (xi) Net
Mark-to-Market Exposure under Rate Management Transactions, (xii) Disqualified
Stock, and (xiii) any other obligation for borrowed money or other financial
accommodation which in accordance with Agreement Accounting Principles would be
shown as a liability on the consolidated balance sheet of such Person.

     "Indemnification Letter" is defined in Section 2.1.1.

     "Interest Expense Coverage Ratio" is defined in Section 6.21.

     "Interest Period" means, with respect to a Eurocurrency Advance, a period
of one, two, three or six months, or, to the extent available to all of the
Lenders, nine or twelve months, commencing on a Business Day selected by the
applicable Borrower pursuant to this Agreement. Such Interest Period shall end
on but exclude the day which corresponds numerically to such date one, two,
three or six months, or if applicable nine or twelve months, thereafter,
provided, however, that if there is no such numerically corresponding day in
such next, second, third, sixth, ninth or twelfth succeeding month, such
Interest Period shall end on the last Business Day of such next, second, third,
sixth, ninth or twelfth succeeding month. If an Interest Period would otherwise
end on a day which is not a Business Day, such Interest Period shall end on the
next succeeding Business Day, provided, however, that if said next succeeding
Business Day falls in a new calendar month, such Interest Period shall end on
the immediately preceding Business Day.

     "Investment" of a Person means any loan, advance (other than commission,
travel, relocation and similar advances to directors, officers and employees
made in the ordinary course of business), extension of credit (other than
accounts receivable arising in the ordinary course of business on terms
customary in the trade) or contribution of capital by such Person; stocks,
bonds, mutual funds, partnership interests, notes, debentures or other
securities owned by such Person; any deposit accounts and certificates of
deposit owned by such Person; and structured notes, derivative financial
instruments and other similar instruments or contracts owned by such Person.

     "LC Draft" means a draft drawn on an LC Issuer pursuant to a Facility LC.

                                       11

<PAGE>

     "LC Fee" is defined in Section 2.24.4.

     "LC Issuer" means Bank One (or any subsidiary or affiliate of Bank One
designated by Bank One) or any of the other Lenders, as applicable, in its
respective capacity as issuer of Facility LCs hereunder.

     "LC Obligations" means, at any time, the sum, without duplication, of (i)
the aggregate undrawn amount under all Facility LCs outstanding at such time
plus (ii) the aggregate unpaid amount at such time of all Reimbursement
Obligations.

     "LC Payment Date" is defined in Section 2.24.5.

     "Lenders" means the lending institutions listed on the signature pages of
this Agreement and their respective successors and assigns. Unless otherwise
specified, the term "Lenders" includes the Swing Line Lender and the LC Issuers.

     "Lending Installation" means, with respect to a Lender or the Agent, the
office, branch, subsidiary or affiliate of such Lender or the Agent with respect
to each Agreed Currency listed on the signature pages hereof or on the
administrative information sheets provided to the Agent in connection herewith
or on a Schedule or otherwise selected by such Lender or the Agent pursuant to
Section 2.19.

     "Letter of Credit" of a Person means a letter of credit or similar
instrument which is issued upon the application of such Person or upon which
such Person is an account party or for which such Person is in any way liable.

     "Leverage Ratio" means, as the end of any of the Company's fiscal quarters,
the ratio of Consolidated Total Debt as of the end of such fiscal quarter to
Consolidated Adjusted EBITDA for the four consecutive fiscal quarters then
ended; provided, that the Leverage Ratio shall be calculated, with respect to
Permitted Acquisitions, on a pro forma basis using historical financial
statements and containing reasonable adjustments satisfactory to the Agent,
broken down by fiscal quarter in the Company's reasonable judgment.

     "Lien" means any lien (statutory or other), mortgage, pledge,
hypothecation, assignment, deposit arrangement, encumbrance or preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever (including, without limitation, the interest of a vendor or
lessor under any conditional sale, Capitalized Lease or other title retention
agreement, and, in the case of stock, stockholders agreements, voting trust
agreements and all similar arrangements).

     "Loan" means, with respect to a Lender, such Lender's loan made pursuant to
Article II (or any conversion or continuation thereof), whether constituting a
Term Loan, Revolving Loan or a Swing Line Loan.

     "Loan Documents" means this Agreement, each Assumption Letter, the Facility
LC Applications, the Guaranty, and all other documents, instruments, notes
(including any Notes issued pursuant to Section 2.15 (if requested)) and
agreements executed in connection herewith

                                       12

<PAGE>

or therewith or contemplated hereby or thereby, as the same may be amended,
restated or otherwise modified and in effect from time to time.

     "Material Adverse Effect" means a material adverse effect on (i) the
business, Property, condition (financial or otherwise), operations or results of
operations, performance or prospects of the Company and its Subsidiaries taken
as a whole, (ii) the ability of the Company or any Subsidiary to perform its
obligations under the Loan Documents, (iii) the validity or enforceability of
any of the Loan Documents or (iv) the rights or remedies of the Agent, the LC
Issuers or the Lenders under any of the Loan Documents.

     "Material Domestic Subsidiary" means (i) PDSI, Webster, Webster Management,
AbilityOne Corporation and AbilityOne, and (ii) any other Domestic Subsidiary of
the Company (other than an SPV) that meets one or both of the following
criteria: (i) such Domestic Subsidiary's total assets, determined on a
consolidated basis with its Subsidiaries is greater than or equal to fifteen
percent (15%) of the consolidated total assets of the Company and its
Subsidiaries; or (ii) such Domestic Subsidiary's Consolidated Adjusted Net
Income is greater than or equal to fifteen percent (15%) of the Company's
Consolidated Adjusted Net Income, in each case for the four consecutive fiscal
quarters most recently ended.

     "Material Indebtedness" means any Indebtedness in an outstanding principal
amount of $10,000,000 or more in the aggregate (or the equivalent thereof in any
currency other than Dollars).

     "Material Indebtedness Agreement" means any agreement under which any
Material Indebtedness was created or is governed or which provides for the
incurrence of Indebtedness in an amount which would constitute Material
Indebtedness (whether or not an amount of Indebtedness constituting Material
Indebtedness is outstanding thereunder).

     "Modify" and "Modification" are defined in Section 2.24.1.

     "Moody's" means Moody's Investors Services, Inc. and any successor thereto.

     "Multiemployer Plan" means a multiemployer plan, as defined in Section
4001(a)(3) of ERISA, which is covered by Title IV of ERISA and to which the
Company or any member of the Controlled Group is obligated to make
contributions.

     "National Currency Unit" means the unit of currency (other than a euro
unit) of each member state of the European Union that participates in the third
stage of Economic and Monetary Union.

     "Net Mark-to-Market Exposure" of a Person means, as of any date of
determination, the excess (if any) of all unrealized losses over all unrealized
profits of such Person arising from Rate Management Transactions. "Unrealized
losses" means the fair market value of the cost to such Person of replacing such
Rate Management Transaction as of the date of determination (assuming the Rate
Management Transaction were to be terminated as of that date), and "unrealized
profits" means the fair market value of the gain to such Person of replacing
such Rate Management Transaction as of the date of determination (assuming such
Rate Management Transaction were to be terminated as of that date).

                                       13

<PAGE>

     "Non-U.S. Lender" is defined in Section 3.5(iv).

     "Note" is defined in Section 2.15.

     "Note Purchase Agreement" means, collectively, any one or more agreements
entered into by the Company with respect to the Company's issuance and private
placement of the Company's senior unsecured debt securities (the "Senior
Notes"), as such Note Purchase Agreement may be amended, modified or
supplemented from time to time in a manner that is not materially adverse to the
interests of the Lenders.

     "Obligations" means all Loans, all Reimbursement Obligations, advances,
debts, liabilities, obligations, covenants and duties owing by any Borrower or
any Subsidiary to the Agent, any Lender, the Swing Line Lender, any LC Issuer,
the Arrangers, any affiliate of the Agent, any Lender, the Swing Line Lender,
any LC Issuer or the Arrangers, or any indemnitee under the provisions of
Section 9.6 or any other provisions of the Loan Documents, in each case of any
kind or nature, present or future, arising under this Agreement or any other
Loan Document, whether or not evidenced by any note, guaranty or other
instrument, whether or not for the payment of money, whether arising by reason
of an extension of credit, loan, foreign exchange risk, guaranty,
indemnification, or in any other manner, whether direct or indirect (including
those acquired by assignment), absolute or contingent, due or to become due, now
existing or hereafter arising and however acquired. The term includes, without
limitation, all interest, charges, expenses, fees, attorneys' fees and
disbursements, paralegals' fees (in each case whether or not allowed), and any
other sum chargeable to the Company or any Subsidiary under this Agreement or
any other Loan Document.

     "Off-Balance Sheet Liability" of a Person means the principal component of
(i) any repurchase obligation or liability of such Person with respect to
accounts or notes receivable sold by such Person, (ii) any liability under any
Sale and Leaseback Transaction which is not a Capitalized Lease, (iii) any
liability under any so-called "synthetic lease" or "tax ownership operating
lease" transaction entered into by such Person, (iv) any Receivables Purchase
Facility or (v) any obligation arising with respect to any other transaction
which is the functional equivalent of or takes the place of borrowing but which
does not constitute a liability on the consolidated balance sheets of such
Person, but excluding from this clause (v) all Operating Leases.

     "Off-Balance Sheet Trigger Event" is defined in Section 7.17.

     "Operating Lease" of a Person means any lease of Property (other than a
Capitalized Lease) by such Person as lessee which has an original term
(including any required renewals and any renewals effective at the option of the
lessor) of one year or more.

     "Other Taxes" is defined in Section 3.5(ii).

     "Outstanding Revolving Credit Exposure" means, as to any Lender at any
time, the sum of (i) the aggregate principal amount of its Revolving Loans
outstanding at such time, plus (ii) an amount equal to its ratable obligation to
purchase participations in the aggregate principal amount of Swing Line Loans
outstanding at such time, plus (iii) an amount equal to its ratable obligation
to purchase participations in the LC Obligations at such time.

                                       14

<PAGE>

     "Participants" is defined in Section 12.2.1.

     "Payment Date" means the last day of each March, June, September and
December, the Revolving Loan Termination Date and the Term Loan Maturity Date.

     "PBGC" means the Pension Benefit Guaranty Corporation, or any successor
thereto.

     "PDSI" means Patterson Dental Supply, Inc., a Minnesota corporation.

     "Permitted Acquisition" is defined in Section 6.13.5.

     "Permitted Purchase Money Debt" is defined in Section 6.14.5.

     "Person" means any natural person, corporation, firm, joint venture,
partnership, limited liability company, association, enterprise, trust or other
entity or organization, or any government or political subdivision or any
agency, department or instrumentality thereof.

     "Plan" means an employee pension benefit plan, excluding any Multiemployer
Plan, which is covered by Title IV of ERISA or subject to the minimum funding
standards under Section 412 of the Code as to which the Company or any member of
the Controlled Group may have any liability.

     "Pricing Schedule" means the Schedule identifying the Applicable Margin and
Applicable Fee Rate attached hereto and identified as such.

     "Prime Rate" means a rate per annum equal to the prime rate of interest
announced from time to time by Bank One or its parent (which is not necessarily
the lowest rate charged to any customer), changing when and as said prime rate
changes.

     "Property" of a Person means any and all property, whether real, personal,
tangible, intangible, or mixed, of such Person, or other assets owned, leased or
operated by such Person.

     "Pro Rata Share" means, with respect to any Lender, the percentage obtained
by dividing (i) the sum of such Lender's Revolving Loan Commitment and Term
Loans at such time by (ii) the sum of the Aggregate Revolving Loan Commitment
and the aggregate amount of all of the Term Loans at such time; provided,
however, if all of the Revolving Loan Commitments are terminated pursuant to the
terms of this Agreement, then "Pro Rata Share" means the percentage obtained by
dividing (a) the sum of such Lender's Outstanding Revolving Credit Exposure and
Term Loans at such time by (b) the sum of the Aggregate Outstanding Revolving
Credit Exposure and the aggregate outstanding amount of all Term Loans at such
time.

     "Purchase Price" means the total consideration and other amounts payable in
connection with any Acquisition, including, without limitation, any portion of
the consideration payable in cash, all Indebtedness, liabilities and contingent
obligations incurred or assumed in connection with such Acquisition and all
transaction costs and expenses incurred in connection with such Acquisition, but
exclusive of the value of any capital stock or other equity interests of the
Company or any Subsidiary issued as consideration for such Acquisition.

                                       15

<PAGE>

     "Purchasers" is defined in Section 12.3.1.

     "Rate Management Obligations" of a Person means any and all obligations of
such Person, whether absolute or contingent and howsoever and whensoever
created, arising, evidenced or acquired (including all renewals, extensions and
modifications thereof and substitutions therefor), under (i) any and all Rate
Management Transactions, and (ii) any and all cancellations, buy backs,
reversals, terminations or assignments of any Rate Management Transactions.

     "Rate Management Transaction" means any transaction (including an agreement
with respect thereto) now existing or hereafter entered into by the Company or a
Subsidiary which is a rate swap, basis swap, forward rate transaction, commodity
swap, commodity option, equity or equity index swap, equity or equity index
option, bond option, interest rate option, foreign exchange transaction, cap
transaction, floor transaction, collar transaction, forward transaction,
currency swap transaction, cross-currency rate swap transaction, currency option
or any other similar transaction (including any option with respect to any of
these transactions) or any combination thereof, whether linked to one or more
interest rates, foreign currencies, commodity prices, equity prices or other
financial measures.

     "Receivables Purchase Documents" means each of (i) that certain Receivables
Sale Agreement dated as of May 10, 2002, among the originators named therein and
PDC Funding Company, LLC, as buyer and that certain Receivables Purchase
Agreement dated as of May 10, 2002, among PDC Funding Company, LLC, the Company,
Preferred Receivables Funding Corporation, the financial institutions party
thereto and Bank One, as agent, as such agreements may be amended, restated,
extended or otherwise modified from time to time, (ii) that certain Third
Amended and Restated Contract Purchase Agreement, dated as of June 19, 2002,
among the Company, PDSI, Webster, U.S. Bank National Association, individually
and as agent, and certain buyers identified therein, as such Third Amended and
Restated Contract Purchase Agreement may be amended, restated, extended or
otherwise modified from time to time and (iii) any comparable additional or
replacement facility made available to the Company or any Subsidiary, provided
that any such facility: (a) provides for the sale by the Company or such
Subsidiary of rights to payment; (b) evidences the intent of the parties that
for accounting and all other purposes, such sale is to be treated as a sale by
the Company or a Subsidiary, as the case may be, and a purchase by the
transferee (and not as a lending transaction); (c) provides for the delivery of
such true sale, non-consolidation and other opinions of outside counsel as are
then customary or required in connection with such a transaction; (d) the
parties to such transaction treat such transaction as a sale for all other
accounting purposes; and (e) such sale is without recourse to the Company or
such Subsidiary, except to the extent of normal and customary conditions and
rights of limited recourse that are consistent with the opinions referred to in
clause (c) and with the treatment of such sale as a true sale for accounting
purpose.

     "Receivables Purchase Facility" means (i) the transactions contemplated by
the Receivables Purchase Documents and (ii) other sales (including licenses),
with limited recourse, or no recourse, by PDSI, Webster, Webster Management,
AbilityOne Corporation, or AbilityOne of Accounts derived from sales on contract
of furnishings and equipment (but not, however, (a) open account sales of
supplies or (b) Accounts derived from provisions of services).

                                       16

<PAGE>

     "Regulation D" means Regulation D of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor thereto or other
regulation or official interpretation of said Board of Governors relating to
reserve requirements applicable to member banks of the Federal Reserve System.

     "Regulation U" means Regulation U of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by banks, non-banks and non-broker lenders for the purpose
of purchasing or carrying margin stocks applicable to member banks of the
Federal Reserve System.

     "Regulation X" means Regulation X of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by foreign lenders for the purpose of purchasing or carrying
margin stock (as defined therein).

     "Reimbursement Obligations" means, at any time, with respect to any LC
Issuer, the aggregate of all obligations of the Borrowers then outstanding under
Section 2.24 to reimburse such LC Issuer for amounts paid by such LC Issuer in
respect of any one or more drawings under Facility LCs issued by such LC Issuer;
or, as the context may require, all such Reimbursement Obligations then
outstanding to reimburse all of the LC Issuers.

     "Reportable Event" means a reportable event as defined in Section 4043 of
ERISA and the regulations issued under such section, with respect to a Plan
subject to Title IV of ERISA, excluding, however, such events as to which the
PBGC has by regulation waived the requirement of Section 4043(a) or (b) of ERISA
that it be notified within 30 days of the occurrence of such event, provided,
however, that a failure to meet the minimum funding standard of Section 412 of
the Code and of Section 302 of ERISA shall be a Reportable Event regardless of
the issuance of any such waiver of the notice requirement in accordance with
either Section 4043(a) or (b) of ERISA or Section 412(d) of the Code.

     "Required Lenders" means Lenders in the aggregate having more than 50% of
the Aggregate Revolving Loan Commitment (or, if all of the Revolving Loan
Commitments are terminated pursuant to the terms of this Agreement, the
Aggregate Outstanding Revolving Credit Exposure) and Term Loans at such time.

     "Reserve Requirement" means, with respect to an Interest Period, the
maximum aggregate reserve requirement (including all basic, supplemental,
marginal and other reserves) which is imposed under Regulation D on
"Eurocurrency liabilities" (as defined in Regulation D).

     "Revolving Loan" means, with respect to a Lender, such Lender's loan made
pursuant to its commitment to lend set forth in Section 2.2 (and any conversion
or continuation thereof).

     "Revolving Loan Commitment" means, for each Lender, including without
limitation, each LC Issuer, such Lender's obligation to make Revolving Loans to,
and participate in Facility LCs issued upon the application of, the Borrowers in
an aggregate amount not exceeding the amount set forth for such Lender on the
Commitment Schedule or in any Assignment Agreement

                                       17

<PAGE>

delivered pursuant to Section 12.3, as such amount may be modified from time to
time pursuant to the terms hereof.

     "Revolving Loan Pro Rata Share" means, with respect to any Lender, the
percentage obtained by dividing (i) such Lender's Revolving Loan Commitment at
such time by (ii) the Aggregate Revolving Loan Commitment at such time;
provided, however, if all of the Revolving Loan Commitments are terminated
pursuant to the terms of this Agreement, then "Revolving Loan Pro Rata Share"
means the percentage obtained by dividing (a) such Lender's Outstanding
Revolving Credit Exposure at such time by (b) the Aggregate Outstanding
Revolving Credit Exposure at such time.

     "Revolving Loan Termination Date" means the earlier of (i) November 25,
2008, and (ii) the date of termination in whole of the Aggregate Revolving Loan
Commitment pursuant to Section 2.5.2 hereof or the Revolving Loan Commitments
pursuant to Section 8.1 hereof.

     "S&P" means Standard and Poor's Ratings Group, a division of The
McGraw-Hill Companies, Inc., and any successor thereto.

     "Sale and Leaseback Transaction" means any sale or other transfer of
Property by any Person with the intent to lease such Property as lessee.

     "Schedule" refers to a specific schedule to this Agreement, unless another
document is specifically referenced.

     "SEC" means the United States Securities and Exchange Commission, and any
successor thereto.

     "Section" means a numbered section of this Agreement, unless another
document is specifically referenced.

     "Senior Notes" is defined in the definition of "Note Purchase Agreement".

     "Single Employer Plan" means a Plan maintained by the Company or any member
of the Controlled Group for employees of the Company or any member of the
Controlled Group.

     "Solvent" means, when used with respect to any Person, that at the time of
determination:

     (i)    the fair value of its assets (both at fair valuation and at present
            fair saleable value) is equal to or in excess of the total amount of
            its liabilities, including, without limitation, contingent
            liabilities; and

     (ii)   it is then able and expects to be able to pay its debts as they
            mature; and

     (iii)  it has capital sufficient to carry on its business as conducted and
            as proposed to be conducted.

     With respect to contingent liabilities (such as litigation, guarantees and
pension plan liabilities), such liabilities shall be computed at the amount
which, in light of all the facts and

                                       18

<PAGE>

circumstances existing at the time, represent the amount which can reasonably be
expected to become an actual or matured liability.

     "SPV" means any special purpose entity established for the purpose of
purchasing receivables in connection with a receivables securitization
transaction permitted under the terms of this Agreement.

     "Subordinated Indebtedness" of a Person means any Indebtedness of such
Person the payment of which is subordinated to payment of the Obligations to the
written satisfaction of the Required Lenders.

     "Subsidiary" of a Person means (i) any corporation more than 50% of the
outstanding securities having ordinary voting power of which shall at the time
be owned or controlled, directly or indirectly, by such Person or by one or more
of its Subsidiaries or by such Person and one or more of its Subsidiaries, or
(ii) any partnership, limited liability company, association, joint venture or
similar business organization more than 50% of the ownership interests having
ordinary voting power of which shall at the time be so owned or controlled.
Unless otherwise expressly provided, all references herein to a "Subsidiary"
shall mean a Subsidiary of the Company.

     "Subsidiary Borrower" means each of the Company's Domestic Subsidiaries
that are Wholly-Owned Subsidiaries listed on the signature pages of this
Agreement, and any other Domestic Subsidiary that is a Wholly-Owned Subsidiary
of the Company duly designated by the Company pursuant to Section 2.25 to
request Credit Extensions hereunder, which Domestic Subsidiary shall have
delivered to the Agent an Assumption Letter in accordance with Section 2.25 and
such other documents as may be required pursuant to this Agreement, in each
case, together with its permitted successors and assigns, including a
debtor-in-possession on behalf of such Subsidiary Borrower. The initial
Subsidiary Borrowers are AbilityOne Corporation, AbilityOne, PDSI, Webster and
Webster Management.

     "Substantial Portion" means, with respect to the Property of the Company
and its Subsidiaries, Property which represents more than 10% of the
consolidated assets of the Company and its Subsidiaries or property which is
responsible for more than 10% of the consolidated net sales or of the
Consolidated Net Income of the Company and its Subsidiaries, in each case, as
would be shown in the consolidated financial statements of the Company and its
Subsidiaries as at the end of the four fiscal quarter period ending with the
fiscal quarter immediately prior to the fiscal quarter in which such
determination is made (or if financial statements have not been delivered
hereunder for that fiscal quarter which ends the four fiscal quarter period,
then the financial statements delivered hereunder for the quarter ending
immediately prior to that quarter).

     "Swing Line Borrowing Notice" is defined in Section 2.3.2.

     "Swing Line Commitment" means the obligation of the Swing Line Lender to
make Swing Line Loans up to a maximum principal amount of $5,000,000 at any one
time outstanding.

                                       19

<PAGE>

     "Swing Line Lender" means Bank One or such other Lender which may succeed
to its rights and obligations as Swing Line Lender pursuant to the terms of this
Agreement.

     "Swing Line Loan" means a Loan made available to the Company by the Swing
Line Lender pursuant to Section 2.3.

     "Taxes" means any and all present or future taxes, duties, levies, imposts,
deductions, charges or withholdings, and any and all liabilities with respect to
the foregoing, but excluding Excluded Taxes and Other Taxes.

     "Term Loan" is defined in Section 2.1.1.

     "Term Loan Commitment" means, as to each Lender, its obligation to make
Term Loans to the Borrowers pursuant to Section 2.1 on the Closing Date in an
aggregate principal amount set forth for such Lender on the Commitment Schedule.

     "Term Loan Maturity Date" means the earlier of (i) November 25, 2008 and
(ii) the Revolving Loan Termination Date.

     "Term Loan Pro Rata Share" means, with respect to any Lender, the
percentage obtained by dividing (a) such Lender's Term Loan Commitment at such
time by (b) the aggregate Term Loan Commitments at such time.

     "Transaction Documents" means the Loan Documents, the Note Purchase
Agreement, the Senior Notes and the documents executed and delivered by the
Company or any of its Subsidiaries in connection with the AbilityOne Acquisition
including, without limitation, the AbilityOne Acquisition Agreement.

     "Transferee" is defined in Section 12.4.

     "Type" means, with respect to any Advance, its nature as a Floating Rate
Advance or a Eurocurrency Advance and with respect to any Loan, its nature as a
Floating Rate Loan or a Eurocurrency Loan.

     "Unfunded Liabilities" means the amount (if any) by which the present value
of all vested and unvested accrued benefits under each Single Employer Plan
subject to Title IV of ERISA exceeds the fair market value of all such Plan's
assets allocable to such benefits, all determined as of the then most recent
valuation date for such Plan for which a valuation report is available, using
PBGC actuarial assumptions for single employer plan terminations.

     "Unmatured Default" means an event which but for the lapse of time or the
giving of notice, or both, would constitute a Default.

     "Webster" means Webster Veterinary Supply, Inc., a Minnesota corporation.

     "Webster Management" means Webster Management, LP, a Minnesota limited
partnership.

                                       20

<PAGE>

     "Weighted Average Life to Maturity" means when applied to any Indebtedness
at any date, the number of years obtained by dividing (i) the sum of the
products obtained by multiplying (a) the amount of each then remaining
installment, sinking fund, serial maturity or other required scheduled payments
of principal, including payment at final maturity, in respect thereof, by (b)
the number of years (calculated to the nearest one-twelfth) that will elapse
between such date and the making of such payment, by (ii) the then outstanding
principal amount of such Indebtedness.

     "Wholly-Owned Subsidiary" of a Person means (i) any Subsidiary all of the
outstanding voting securities (other than directors' qualifying shares) of which
shall at the time be owned or controlled, directly or indirectly, by such Person
or one or more Wholly-Owned Subsidiaries of such Person, or by such Person and
one or more Wholly-Owned Subsidiaries of such Person, or (ii) any partnership,
limited liability company, association, joint venture or similar business
organization 100% of the ownership interests having ordinary voting power of
which shall at the time be so owned or controlled.

     1.2.   Plural Forms. The foregoing definitions shall be equally applicable
to both the singular and plural forms of the defined terms.

                                   ARTICLE II

                                   THE CREDITS

     2.1.   Term Loan.

            2.1.1    Amounts of Term Loans. Subject to the terms and conditions
     set forth in this Agreement and upon the satisfaction of the conditions
     precedent set forth in Sections 4.1 and 4.2, each Lender severally and not
     jointly agrees to make on the Closing Date, a term loan, in Dollars, to the
     Borrowers in an aggregate amount up to such Lender's Term Loan Commitment
     (each individually, a "Term Loan" and, collectively, the "Term Loans"). All
     Term Loans shall be made by the Lenders on the Closing Date simultaneously
     and proportionately to their respective Term Loan Pro Rata Shares, it being
     understood that no Lender shall be responsible for any failure by any other
     Lender to perform its obligation to make any Term Loan hereunder nor shall
     the Term Loan Commitment of any Lender be increased or decreased as a
     result of any such failure. Unless the Borrowers have delivered to the
     Agent a written agreement pursuant to which the Borrowers agree to
     indemnify the Agent and the Lenders in accordance with Section 3.4 of this
     Agreement in the event any Eurocurrency Advance is not made on the Closing
     Date for any reason (the "Indemnification Letter") on or before the third
     (3rd) Business Day prior to the Closing Date and in form and substance
     reasonably acceptable to the Agent, the Term Loans shall initially be
     Floating Rate Loans and thereafter may be continued as Floating Rate Loans
     or converted into Eurocurrency Loans in the manner provided in Section 2.8
     and subject to the other conditions and limitations therein set forth and
     set forth in this Article II.

            2.1.2    Repayment of the Term Loans. The Term Loans shall be repaid
     in twenty (20) equal consecutive quarterly installments of Five Million
     Dollars ($5,000,000),

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     payable on the last day of each calendar quarter, commencing on March 31,
     2004 and continuing thereafter until the Term Loan Maturity Date and the
     Term Loans shall be permanently reduced by the amount of each installment
     on the date payment thereof is made hereunder. Notwithstanding the
     foregoing, the final installment payable on the Term Loan Maturity Date
     shall be in the amount of the then outstanding principal balance of the
     Term Loans. No installment of any Term Loan may be reborrowed once repaid.

     2.2.   Revolving Loans. From and including the Closing Date and prior to
the Revolving Loan Termination Date, upon the satisfaction of the conditions
precedent set forth in Sections 4.1, 4.2 and 4.3, as applicable, each Lender
severally and not jointly agrees, on the terms and conditions set forth in this
Agreement, to (i) make Revolving Loans to the Borrowers in Agreed Currencies
from time to time and (ii) participate in Facility LCs issued upon the request
of the Borrowers, in each case in Dollar Amounts not to exceed in the aggregate
such Lender's Revolving Loan Pro Rata Share of the Available Aggregate Revolving
Loan Commitment; provided that (i) at no time shall the Aggregate Outstanding
Revolving Credit Exposure hereunder exceed the Aggregate Revolving Loan
Commitment, (ii) all Floating Rate Loans shall be made in Dollars, and (iii) at
no time shall the aggregate outstanding Dollar Amount of all Revolving Loans
denominated in Agreed Currencies other than Dollars exceed $50,000,000. Unless
the Borrowers have delivered to the Agent an Indemnification Letter on or before
the third (3rd) Business Day prior to the Closing Date with respect to all
Revolving Loans requested to be made as Eurocurrency Advances on the Closing
Date or on or before the third (3rd) Business Day thereafter, the Revolving
Loans made on the Closing Date or on or before the third (3rd) Business Day
thereafter shall initially be Floating Rate Loans and thereafter may be
continued as Floating Rate Loans or converted into Eurocurrency Loans in the
manner provided in Section 2.8 and subject to the other conditions and
limitations therein set forth and set forth in this Article II and set forth in
the definition of Interest Period. Revolving Loans made after the third (3rd)
Business Day after the Closing Date shall be, at the option of the applicable
Borrower, selected in accordance with Section 2.8, either Floating Rate Loans or
Eurocurrency Loans. Each Advance under this Section 2.2 shall consist of
Revolving Loans made by each Lender ratably in proportion to such Lender's
respective Revolving Loan Pro Rata Share. The LC Issuers will issue Facility LCs
hereunder on the terms and conditions set forth in Section 2.24. Subject to the
terms of this Agreement, the Borrowers may borrow, repay and reborrow Revolving
Loans at any time prior to the Revolving Loan Termination Date. On the Revolving
Loan Termination Date, the commitment of each Lender to lend hereunder shall
automatically expire and the Borrowers shall repay in full the outstanding
principal balance of the Revolving Loans. Additionally, the Borrowers shall make
the mandatory prepayments prescribed in Section 2.4.

     2.3.   Swing Line Loans.

            2.3.1    Amount of Swing Line Loans. Upon the satisfaction of the
     conditions precedent set forth in Section 4.1 and Section 4.2, if
     applicable, from and including the Closing Date and prior to the Revolving
     Loan Termination Date, the Swing Line Lender agrees, on the terms and
     conditions set forth in this Agreement, to make Swing Line Loans, in
     Dollars, to the Company from time to time in an aggregate principal amount
     not to exceed the Swing Line Commitment, provided that (i) the Aggregate
     Outstanding Revolving Credit Exposure shall not at any time exceed the
     Aggregate Revolving Loan

                                       22

<PAGE>

     Commitment, and (ii) at no time shall the sum of (a) the Swing Line Loans
     then outstanding, plus (b) the outstanding Revolving Loans made by the
     Swing Line Lender pursuant to Section 2.2 (including its participation in
     any Facility LCs), exceed the Swing Line Lender's Revolving Loan Commitment
     at such time. Subject to the terms of this Agreement, the Company may
     borrow, repay and reborrow Swing Line Loans at any time prior to the
     Revolving Loan Termination Date.

            2.3.2    Borrowing Notice. The Company shall deliver to the Agent
     and the Swing Line Lender irrevocable notice (a "Swing Line Borrowing
     Notice") not later than 12:00 noon (Chicago time) on the Borrowing Date of
     each Swing Line Loan, specifying (i) the applicable Borrowing Date (which
     date shall be a Business Day and which may be the same day as the date the
     Swing Line Borrowing Notice was given), and (ii) the aggregate amount of
     the requested Swing Line Loan which shall be an amount not less than
     $100,000 (and increments of $100,000 if in excess thereof). The Swing Line
     Loans shall bear interest at the Floating Rate or such other rate per annum
     as shall be agreed to by the Swing Line Lender and the Company.

            2.3.3    Making of Swing Line Loans. Promptly after receipt of a
     Swing Line Borrowing Notice, the Agent shall notify each Lender by fax or
     other similar form of transmission, of the requested Swing Line Loan. Not
     later than 2:00 p.m. (Chicago time) on the applicable Borrowing Date, the
     Swing Line Lender shall make available the Swing Line Loan, in funds
     immediately available in Chicago, to the Agent at its address specified
     pursuant to Article XIII. The Agent will promptly make the funds so
     received from the Swing Line Lender available to the Company on the
     Borrowing Date at the Agent's aforesaid address.

            2.3.4    Repayment of Swing Line Loans. Each Swing Line Loan shall
     be paid in full by the Company on or before the fifth (5th) Business Day
     after the Borrowing Date for such Swing Line Loan. In addition, the Swing
     Line Lender (i) may at any time in its sole discretion with respect to any
     outstanding Swing Line Loan, or (ii) shall, on the fifth (5th) Business Day
     after the Borrowing Date of any Swing Line Loan, require each Lender
     (including the Swing Line Lender) to make a Revolving Loan in the amount of
     such Lender's Revolving Loan Pro Rata Share of such Swing Line Loan
     (including, without limitation, any interest accrued and unpaid thereon),
     for the purpose of repaying such Swing Line Loan. Not later than 12:00 noon
     (Chicago time) on the date of any notice received pursuant to this Section
     2.3.4, each Lender shall make available its required Revolving Loan, in
     funds immediately available in Chicago to the Agent at its address
     specified pursuant to Article XIII. Revolving Loans made pursuant to this
     Section 2.3.4 shall initially be Floating Rate Loans and thereafter may be
     continued as Floating Rate Loans or converted into Eurocurrency Loans in
     the manner provided in Section 2.9 and subject to the other conditions and
     limitations set forth in this Article II. Unless a Lender shall have
     notified the Swing Line Lender, prior to its making any Swing Line Loan,
     that any applicable condition precedent set forth in Sections 4.1 or 4.2
     had not then been satisfied, such Lender's obligation to make Revolving
     Loans pursuant to this Section 2.3.4 to repay Swing Line Loans shall be
     unconditional, continuing, irrevocable and absolute and shall not be
     affected by any circumstances, including, without limitation, (a) any
     set-off, counterclaim, recoupment, defense or other right which such

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<PAGE>

     Lender may have against the Agent, the Swing Line Lender or any other
     Person, (b) the occurrence or continuance of a Default or Unmatured
     Default, (c) any adverse change in the condition (financial or otherwise)
     of the Company, or (d) any other circumstances, happening or event
     whatsoever. In the event that any Lender fails to make payment to the Agent
     of any amount due under this Section 2.3.4, the Agent shall be entitled to
     receive, retain and apply against such obligation the principal and
     interest otherwise payable to such Lender hereunder until the Agent
     receives such payment from such Lender or such obligation is otherwise
     fully satisfied. In addition to the foregoing, if for any reason any Lender
     fails to make payment to the Agent of any amount due under this Section
     2.3.4, such Lender shall be deemed, at the option of the Agent, to have
     unconditionally and irrevocably purchased from the Swing Line Lender,
     without recourse or warranty, an undivided interest and participation in
     the applicable Swing Line Loan in the amount of such Revolving Loan, and
     such interest and participation may be recovered from such Lender together
     with interest thereon at the Federal Funds Effective Rate for each day
     during the period commencing on the date of demand and ending on the date
     such amount is received. On the Revolving Loan Termination Date, the
     Company shall repay in full the outstanding principal balance of the Swing
     Line Loans.

     2.4.   Determination of Dollar Amounts; Required Payments; Termination.

            2.4.1    Determination of Dollar Amounts. The Agent will determine
     the Dollar Amount of: (a) each Advance as of the date three (3) Business
     Days prior to the Borrowing Date or, if applicable, date of
     conversion/continuation of such Advance, and (b) all outstanding Advances
     on and as of the last Business Day of each calendar quarter and on any
     other Business Day elected by the Agent in its discretion or upon
     instruction by the Required Lenders. Each day upon or as of which the Agent
     determines Dollar Amounts as described in the preceding clauses (a) and (b)
     is herein described as a "Computation Date" with respect to each Advance
     for which a Dollar Amount is determined on or as of such date. If at any
     time the Dollar Amount of the sum of the aggregate principal amount of all
     outstanding Advances (calculated, with respect to those Advances
     denominated in Agreed Currencies other than Dollars, as of the most recent
     Computation Date with respect to each such Advance) exceeds $50,000,000,
     the Borrowers shall immediately repay Advances in an aggregate principal
     amount sufficient to eliminate any such excess.

            2.4.2    Required Payments; Terminations. Any outstanding Revolving
     Loans shall be paid in full by the Borrowers on the Revolving Loan
     Termination Date, any outstanding Term Loans shall be paid in full by the
     Borrowers on the Term Loan Maturity Date, and all other unpaid Obligations
     shall be paid in full by the Borrowers on the later of the Revolving Loan
     Termination Date and the Term Loan Maturity Date. Notwithstanding the
     termination of the Revolving Loan Commitments under this Agreement on the
     Revolving Loan Termination Date, until all of the Obligations (other than
     contingent indemnity obligations) shall have been fully paid and satisfied
     and all financing arrangements among the Borrowers and the Lenders
     hereunder and under the other Loan Documents shall have been terminated,
     all of the rights and remedies under this Agreement and the other Loan
     Documents shall survive.

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<PAGE>

            2.4.3    Mandatory Prepayments of Aggregated Outstanding Revolving
     Credit Exposure. If at any time and for any reason, the amount of the
     Aggregate Outstanding Revolving Credit Exposure is greater than the
     Aggregate Revolving Loan Commitment, the Borrowers shall immediately make a
     mandatory prepayment of the Aggregate Outstanding Revolving Credit Exposure
     in an amount equal to such excess.

     2.5.   Commitment Fee; Reductions in Aggregate Revolving Loan Commitment.

            2.5.1    The Commitment Fee. The Company shall pay to the Agent, for
     the account of the Lenders in accordance with their Revolving Loan Pro Rata
     Shares, from and after the Closing Date until the date on which the
     Aggregate Revolving Loan Commitment shall be terminated in whole, a
     commitment fee (the "Commitment Fee") accruing at the rate of the then
     Applicable Fee Rate on the daily average Available Aggregate Revolving Loan
     Commitment (provided that, for purposes of determining the Commitment Fee,
     all outstanding Swing Line Loans shall be excluded from the calculation of
     the Available Aggregate Revolving Loan Commitment). All such Commitment
     Fees payable hereunder shall be payable quarterly in arrears on each
     Payment Date; provided, that if any Lender continues to have Outstanding
     Revolving Credit Exposure after the termination of its Revolving Loan
     Commitment, then the Commitment Fee shall continue to accrue and be due and
     payable pursuant to the terms hereof until such Outstanding Revolving
     Credit Exposure is reduced to zero.

            2.5.2    Reductions in Aggregate Revolving Loan Commitment. The
     Borrowers may permanently reduce the Aggregate Revolving Loan Commitment in
     whole, or in part, ratably among the Lenders in a minimum amount of
     $5,000,000 (and in multiples of $1,000,000 if in excess thereof)(or the
     Approximate Equivalent Amount if denominated in an Agreed Currency other
     than Dollars), upon at least three (3) Business Days' prior written notice
     to the Agent, which notice shall specify the amount of any such reduction,
     provided, however, that the amount of the Aggregate Revolving Loan
     Commitment may not be reduced below the Dollar Amount of the Aggregate
     Outstanding Revolving Credit Exposure. All accrued Commitment Fees shall be
     payable on the effective date of any termination of the Revolving Loan
     Commitments hereunder and on the final date upon which all Revolving Loans
     are repaid. For purposes of calculating the Commitment Fee hereunder, the
     principal amount of each Advance made in an Agreed Currency other than
     Dollars shall be at any time the Dollar Amount of such Advance as
     determined on the most recent Computation Date with respect to such
     Advance.

     2.6.   Minimum Amount of Each Advance. Each Eurocurrency Advance shall be
in the minimum amount of $1,000,000 (and in multiples of $100,000 if in excess
thereof)(or the Approximate Equivalent Amounts if denominated in an Agreed
Currency other than Dollars), and each Floating Rate Advance (other than a Swing
Line Loan or an Advance to repay Swing Line Loans) shall be in the minimum
amount of $1,000,000 (and in multiples of $100,000 if in excess thereof),
provided, however, that any Floating Rate Advance may be in the amount of the
Available Aggregate Revolving Loan Commitment.

     2.7.   Optional Principal Payments. The Borrowers may from time to time
pay, without penalty or premium, all outstanding Floating Rate Advances (other
than Swing Line Loans), or

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<PAGE>

any portion of the outstanding Floating Rate Advances (other than Swing Line
Loans), in a minimum aggregate amount of $1,000,000 or any integral multiple of
$1,000,000 in excess thereof, upon one (1) Business Day's prior notice to the
Agent by 11:00 a.m. (Chicago time) on the date of any anticipated repayment. The
Company may at any time pay, without penalty or premium, all outstanding Swing
Line Loans, or, in a minimum amount of $100,000 and increments of $100,000 in
excess thereof, any portion of the outstanding Swing Line Loans, with notice to
the Agent and the Swing Line Lender by 11:00 a.m. (Chicago time) on the date of
repayment. The Borrowers may from time to time pay, subject to the payment of
any funding indemnification amounts required by Section 3.4 but without penalty
or premium, all outstanding Eurocurrency Advances, or, in a minimum aggregate
amount of $1,000,000 or any integral multiple of $1,000,000 in excess thereof
(or the Approximate Equivalent Amount if denominated in an Agreed Currency other
than Dollars), any portion of the outstanding Eurocurrency Advances upon three
(3) Business Days' prior notice to the Agent.

     2.8.   Method of Selecting Types and Interest Periods for New Advances. The
applicable Borrower shall select the Type of Advance and, in the case of each
Eurocurrency Advance, the Interest Period and Agreed Currency applicable thereto
from time to time; provided that there shall be no more than 10 Interest Periods
in effect with respect to all of the Loans at any time, unless such limit has
been waived by the Agent in its sole discretion. The applicable Borrower shall
give the Agent irrevocable notice (a "Borrowing Notice") not later than 11:00
a.m. (Chicago time) on the Borrowing Date of each Floating Rate Advance (other
than a Swing Line Loan), three (3) Business Days before the Borrowing Date for
each Eurocurrency Advance denominated in Dollars and four (4) Business Days
before the Borrowing Date for each Eurocurrency Advance denominated in an Agreed
Currency other than Dollars, specifying:

            (a)  the Borrowing Date, which shall be a Business Day, of such
Advance,

            (b)  the aggregate amount of such Advance,

            (c)  the Type of Advance selected, and

            (d)  in the case of each Eurocurrency Advance, the Interest Period
and Agreed Currency applicable thereto.

With respect to the Term Loans, the Borrowers may not select an Interest Period
that ends after the Term Loan Maturity Date. With respect to the Revolving
Loans, the Borrowers may not select an Interest Period that ends after the
Revolving Loan Termination Date.

     2.9.   Conversion and Continuation of Outstanding Advances; No Conversion
or Continuation of Eurocurrency Advances After Default. Floating Rate Advances
(other than Swing Line Advances) shall continue as Floating Rate Advances unless
and until such Floating Rate Advances are converted into Eurocurrency Advances
pursuant to this Section 2.9 or are repaid in accordance with Section 2.7. Each
Eurocurrency Advance shall continue as a Eurocurrency Advance until the end of
the then applicable Interest Period therefor, at which time:

            2.9.1    each such Eurocurrency Advance denominated in Dollars shall
     be automatically converted into a Floating Rate Advance unless (x) such
     Eurocurrency

                                       26

<PAGE>

     Advance is or was repaid in accordance with Section 2.7 or (y) the
     applicable Borrower shall have given the Agent a Conversion/Continuation
     Notice (as defined below) requesting that, at the end of such Interest
     Period, such Eurocurrency Advance either continue as a Eurocurrency Advance
     for the same or another Interest Period or be converted into a Floating
     Rate Advance; and

            2.9.2    each such Eurocurrency Advance denominated in an Agreed
     Currency other than Dollars shall be automatically converted into a
     Eurocurrency Advance in the same Agreed Currency with an Interest Period of
     one month unless (x) such Eurocurrency Advance is or was repaid in
     accordance with Section 2.7 or (y) the applicable Borrower shall have given
     the Agent a Conversion/Continuation Notice (as defined below) requesting
     that, at the end of such Interest Period, such Eurocurrency Advance
     continue as a Eurocurrency Advance for the same or another Interest Period.

Subject to the terms of Section 2.6 and the payment of any funding
indemnification amounts required by Section 3.4, the applicable Borrower may
elect from time to time to convert all or any part of an Advance of any Type
(other than a Swing Line Advance) into any other Type or Types of Advances
denominated in the same or any other Agreed Currency; provided that (i) any
conversion of any Eurocurrency Advance shall be made on, and only on, the last
day of the Interest Period applicable thereto and (ii) Eurocurrency Advances
consisting of Term Loans may only be converted or continued in Dollars.
Notwithstanding anything to the contrary contained in this Section 2.9 during
the continuance of a Default or an Unmatured Default, the Agent may (or shall at
the direction of the Required Lenders), by notice to the Borrowers, declare that
no Advance may be made as, converted to or, following the expiration of any
Interest Periods then in effect, continued as a Eurocurrency Advance. The
applicable Borrower shall give the Agent irrevocable notice (a
"Conversion/Continuation Notice") of each conversion of an Advance or
continuation of a Eurocurrency Advance not later than 12:00 noon (Chicago time)
on the same Business Day, in the case of a conversion into a Floating Rate
Advance, three (3) Business Days, in the case of a conversion into or
continuation of a Eurocurrency Advance denominated in Dollars, or four (4)
Business Days, in the case of a conversion into or continuation of a
Eurocurrency Advance denominated in an Agreed Currency other than Dollars, prior
to the date of the requested conversion or continuation, specifying:

     (i)    the requested date, which shall be a Business Day, of such
            conversion or continuation, and

     (ii)   the Agreed Currency, amount and Type(s) of Advance(s) into which
            such Advance is to be converted or continued and, in the case of a
            conversion into or continuation of a Eurocurrency Advance, the
            duration of the Interest Period applicable thereto.

     2.10.  Method of Borrowing. On each Borrowing Date, each Lender shall make
available its Loan or Loans, if any, (i) if such Loan is denominated in Dollars,
not later than 12:00 noon, Chicago time, in Federal or other funds immediately
available to the Agent, in Chicago, Illinois at its address specified in or
pursuant to Article XIII and, (ii) if such Loan is denominated in an Agreed
Currency other than Dollars, not later than 12:00 noon, local time, in the city
of the Agent's Eurocurrency Payment Office for such currency, in such funds as
may

                                       27

<PAGE>

then be customary for the settlement of international transactions in such
currency in the city of and at the address of the Agent's Eurocurrency Payment
Office for such currency. Unless the Agent determines that any applicable
condition specified in Article IV has not been satisfied, the Agent will make
the funds so received from the Lenders available to the applicable Borrower at
the Agent's aforesaid address. Notwithstanding the foregoing provisions of this
Section 2.10, to the extent that a Revolving Loan made by a Lender matures on
the Borrowing Date of a requested Revolving Loan, such Lender shall apply the
proceeds of the Revolving Loan it is then making to the repayment of principal
of the maturing Revolving Loan.

     2.11.  Changes in Interest Rate, etc. Each Floating Rate Advance (other
than a Swing Line Advance) shall bear interest on the outstanding principal
amount thereof, for each day from and including the date such Advance is made or
is automatically converted from a Eurocurrency Advance into a Floating Rate
Advance pursuant to Section 2.9, to but excluding the date it is paid or is
converted into a Eurocurrency Advance pursuant to Section 2.9 hereof, at a rate
per annum equal to the Floating Rate for such day. Each Swing Line Loan shall
bear interest on the outstanding principal amount thereof, for each day from and
including the day such Swing Line Loan is made to but excluding the date it is
fully paid at a rate per annum equal to the Floating Rate for such day or at
such other rate per annum as shall be agreed to by the Swing Line Lender and the
Company. Changes in the rate of interest on that portion of any Advance
maintained as a Floating Rate Advance will take effect simultaneously with each
change in the Alternate Base Rate. Each Eurocurrency Advance shall bear interest
on the outstanding principal amount thereof from and including the first day of
the Interest Period applicable thereto to (but not including) the last day of
such Interest Period at the Eurocurrency Rate determined by the Agent as
applicable to such Eurocurrency Advance based upon the applicable Borrower's
selections under Sections 2.8 and 2.9 and otherwise in accordance with the terms
hereof. No Interest Period in respect of any Revolving Loan may end after the
Revolving Loan Termination Date. No Interest Period in respect of any Term Loan
may end after the Term Loan Maturity Date.

     2.12.  Rates Applicable After Default. During the continuance of a Default
the Required Lenders may, at their option, by notice to the Borrowers (which
notice may be revoked at the option of the Required Lenders notwithstanding any
provision of Section 8.2 requiring unanimous consent of the Lenders to changes
in interest rates), declare that (i) each Eurocurrency Advance shall bear
interest for the remainder of the applicable Interest Period at a rate per annum
equal to the Floating Rate in effect from time to time plus 2% per annum, (ii)
each Floating Rate Advance and each Swing Line Loan shall bear interest at a
rate per annum equal to the Floating Rate in effect from time to time plus 2%
per annum, and (iii) the LC Fee described in the first sentence of Section
2.24.4 shall be increased to a rate per annum equal to the Floating Rate in
effect from time to time plus 2% per annum; provided that, during the
continuance of a Default under Section 7.2, 7.3 (solely arising as a result of a
breach of any of Sections 6.20 through 6.22), 7.6 or 7.7, the interest rates set
forth in clauses (i) and (ii) above and the increase in the LC Fee set forth in
clause (iii) above shall be applicable to all Credit Extensions, Advances, fees
and other Obligations hereunder without any election or action on the part of
the Agent, any LC Issuer or any Lender.

     2.13.  Method of Payment; Non-availability of Original Currency.

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<PAGE>

            2.13.1   Method of Payment. Each Advance shall be repaid and each
     payment of interest thereon shall be paid in the currency in which such
     Advance was made or, where such currency has converted to euro, in euro.
     All payments of the Obligations hereunder shall be made, without setoff,
     deduction, or counterclaim, in immediately available funds to the Agent at
     (except as set forth in the next sentence) the Agent's address specified
     pursuant to Article XIII, or at any other Lending Installation of the Agent
     specified in writing by the Agent to the Company, by 12:00 noon (local
     time) on the date when due and shall (except with respect to repayments of
     Swing Line Loans, and except in the case of Reimbursement Obligations for
     which any LC Issuer has not been fully indemnified by the Lenders, or as
     otherwise specifically required hereunder) be applied ratably by the Agent
     among the Lenders. All payments to be made by the Borrowers hereunder in
     any currency other than Dollars shall be made in such currency on the date
     due in such funds as may then be customary for the settlement of
     international transactions in such currency for the account of the Agent,
     at its Eurocurrency Payment Office for such currency and shall be applied
     ratably by the Agent among the Lenders. Each payment delivered to the Agent
     for the account of any Lender shall be delivered promptly by the Agent to
     such Lender in the same type of funds that the Agent received at, (a) with
     respect to Floating Rate Loans and Eurocurrency Loans denominated in
     Dollars, its address specified pursuant to Article XIII or at any Lending
     Installation specified in a notice received by the Agent from such Lender
     and (b) with respect to Eurocurrency Loans denominated in an Agreed
     Currency other than Dollars, in the funds received from the Borrowers at
     the address of the Agent's Eurocurrency Payment Office for such currency.
     The Agent is hereby authorized to charge the account of any Borrower
     maintained with Bank One for each payment of the Obligations as it becomes
     due hereunder. Each reference to the Agent in this Section 2.13 shall also
     be deemed to refer, and shall apply equally to the LC Issuers in the case
     of payments required to be made by any Borrower to the LC Issuers pursuant
     to Section 2.24.6.

            2.13.2   Non-availability of Original Currency. Notwithstanding the
     foregoing provisions of this Section, if, after the making of any Advance
     in any currency other than Dollars, currency control or exchange
     regulations are imposed in the country which issues such currency with the
     result that the type of currency in which the Advance was made (the
     "Original Currency") no longer exists or the applicable Borrower is not
     able to make payment to the Agent for the account of the Lenders in such
     Original Currency, then all payments to be made by the applicable Borrower
     hereunder in such currency shall instead be made when due in Dollars in an
     amount equal to the Dollar Amount (as of the date of repayment) of such
     payment due, it being the intention of the parties hereto that the
     applicable Borrower take all risks of the imposition of any such currency
     control or exchange regulations.

     2.14.  Advances to be Made in euro. If any Advance made (or to be made)
would, but for the provisions of this Section 2.14, be capable of being made in
either euro or in a National Currency Unit, such Advance shall be made in euro.

     2.15.  Noteless Agreement; Evidence of Indebtedness.

                                       29

<PAGE>

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

     (ii)   The Agent shall also maintain accounts in which it will record (a)
            the date and the amount of each Loan made hereunder, the Agreed
            Currency and Type thereof and the Interest Period (in the case of a
            Eurocurrency Advance) with respect thereto, (b) the amount of any
            principal or interest due and payable or to become due and payable
            from the Borrowers to each Lender hereunder, (c) the original stated
            amount of each Facility LC and the amount of LC Obligations
            outstanding at any time, (d) the effective date and amount of each
            Assignment Agreement delivered to and accepted by it and the parties
            thereto pursuant to Section 12.3, (e) the amount of any sum received
            by the Agent hereunder from the Borrowers and each Lender's share
            thereof, and (f) all other appropriate debits and credits as
            provided in this Agreement, including, without limitation, all fees,
            charges, expenses and interest.

     (iii)  The entries maintained in the accounts maintained pursuant to
            paragraphs (i) and (ii) above shall be prima facie evidence of the
            existence and amounts of the Obligations therein recorded; provided,
            however, that the failure of the Agent or any Lender to maintain
            such accounts or any error therein shall not in any manner affect
            the obligation of the Borrowers to repay the Obligations in
            accordance with their terms.

     (iv)   Any Lender may request that its Term Loans, Revolving Loans or, in
            the case of the Swing Line Lender, the Swing Line Loans, be
            evidenced by promissory notes (the "Notes") in substantially the
            form of Exhibit E-1 or E-2, with appropriate changes for notes
            evidencing Swing Line Loans. In such event, each Borrower shall
            prepare, execute and deliver to such Lender such Note(s) payable to
            the order of such Lender or its registered assigns. Thereafter, the
            Loans evidenced by such Notes and interest thereon shall at all
            times (prior to any assignment pursuant to Section 12.3) be
            represented by one or more Notes payable to the order of the payee
            named therein, except to the extent that any such Lender
            subsequently returns any such Note(s) for cancellation and requests
            that such Loans once again be evidenced as described in paragraphs
            (i) and (ii) above.

     2.16.  Telephonic Notices. Each Borrower hereby authorizes the Lenders and
the Agent to extend, convert or continue Advances, effect selections of Agreed
Currencies and Types of Advances and to transfer funds based on telephonic
notices made by any person or persons the Agent or any Lender in good faith
believes to be acting on behalf of such Borrower, it being understood that the
foregoing authorization is specifically intended to allow Borrowing Notices and
Conversion/Continuation Notices to be given telephonically. Each Borrower agrees
to deliver promptly to the Agent a written confirmation, signed by an Authorized
Officer of such Borrower, if such confirmation is requested by the Agent or any
Lender, of each telephonic notice. If the written confirmation differs in any
material respect from the action taken by the

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Agent and the Lenders, the records of the Agent and the Lenders shall govern
absent manifest error.

     2.17.  Interest Payment Dates; Interest and Fee Basis. Interest accrued on
each Floating Rate Advance shall be payable in arrears on each Payment Date,
commencing with the first such date to occur after the Closing Date, on any date
on which the Floating Rate Advance is prepaid, whether due to acceleration or
otherwise, and at maturity. Interest accrued on that portion of the outstanding
principal amount of any Floating Rate Advance converted into a Eurocurrency
Advance on a day other than a Payment Date shall be payable on the date of
conversion. Interest accrued on each Eurocurrency Advance shall be payable on
the last day of its applicable Interest Period, on any date on which the
Eurocurrency Advance is prepaid, whether by acceleration or otherwise, and at
maturity. Interest accrued on each Eurocurrency Advance having an Interest
Period longer than three (3) months shall also be payable on the last day of
each three-month interval during such Interest Period. Interest on Eurocurrency
Advances, Swing Line Loans, LC Fees and all other fees hereunder shall be
calculated for actual days elapsed on the basis of a 360-day year, except for
interest on Revolving Loans denominated in British Pounds Sterling which shall
be calculated for actual days elapsed on the basis of a 365-day year. Interest
on Floating Rate Advances shall be calculated for actual days elapsed on the
basis of a 365/366-day year. Interest shall be payable for the day an Advance is
made but not for the day of any payment on the amount paid if payment is
received prior to 12:00 noon (local time) at the place of payment. If any
payment of principal of or interest on an Advance, any fees or any other amounts
payable to the Agent or any Lender hereunder shall become due on a day which is
not a Business Day, such payment shall be made on the next succeeding Business
Day and, in the case of a principal payment, such extension of time shall be
included in computing interest, fees and commissions in connection with such
payment.

     2.18.  Notification of Advances, Interest Rates, Prepayments and Commitment
Reduction. Promptly after receipt thereof, the Agent will notify each Lender of
the contents of each Aggregate Revolving Loan Commitment reduction notice,
Borrowing Notice, Swing Line Borrowing Notice, Conversion/Continuation Notice,
and repayment notice received by it hereunder. Promptly after notice from the
applicable LC Issuer, the Agent will notify each Lender of the contents of each
request for issuance of a Facility LC hereunder. The Agent will notify the
Borrowers and each Lender of the interest rate applicable to each Eurocurrency
Advance promptly upon determination of such interest rate and will give the
Borrowers and each Lender prompt notice of each change in the Alternate Base
Rate.

     2.19.  Lending Installations.

            2.19.1   Each Lender may book its Revolving Loans denominated in an
     Agreed Currency other than Dollars at the appropriate Lending Installation
     listed on the administrative information sheets provided to the Agent in
     connection herewith or such other Lending Installation designated by such
     Lender in accordance with the final sentence of this Section 2.19.1. All
     terms of this Agreement shall apply to any such Lending Installation and
     the Revolving Loans denominated in an Agreed Currency other than Dollars
     and any Notes evidencing such Revolving Loans issued hereunder shall be
     deemed held by each Lender for the benefit of any such Lending
     Installation. Each Lender may, by written notice to the Agent and the
     Borrowers in accordance with Article

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<PAGE>

     XIII, designate replacement or additional Lending Installations through
     which such Revolving Loans will be made by it and for whose account such
     Revolving Loan payments are to be made.

            2.19.2   Except for Revolving Loans denominated in an Agreed
     Currency other than Dollars, each Lender may book its Loans and its
     participation in any LC Obligations and the LC Issuers may book the
     Facility LCs issued by it at any Lending Installation selected by such
     Lender or LC Issuer, as applicable, and may change its Lending Installation
     from time to time. All terms of this Agreement shall apply to any such
     Lending Installation and the Loans, Facility LCs, participations in LC
     Obligations and any Notes evidencing a Loan issued hereunder shall be
     deemed held by each Lender or LC Issuer, as applicable, for the benefit of
     any such Lending Installation. Each Lender and LC Issuer may, by written
     notice to the Agent and the Borrowers in accordance with Article XIII,
     designate replacement or additional Lending Installations through which
     Loans will be made by it or Facility LCs will be issued by it and for whose
     account Loan payments or payments with respect to Facility LCs are to be
     made.

     2.20.  Non-Receipt of Funds by the Agent. Unless the applicable Borrower or
a Lender, as the case may be, notifies the Agent prior to the date on which it
is scheduled to make payment to the Agent of (i) in the case of a Lender, the
proceeds of a Loan or (ii) in the case of any Borrower, a payment of principal,
interest or fees to the Agent for the account of the Lenders, that it does not
intend to make such payment, the Agent may assume that such payment has been
made. The Agent may, but shall not be obligated to, make the amount of such
payment available to the intended recipient in reliance upon such assumption. If
such Lender or the applicable Borrower, as the case may be, has not in fact made
such payment to the Agent, the recipient of such payment shall, on demand by the
Agent, repay to the Agent the amount so made available together with interest
thereon in respect of each day during the period commencing on the date such
amount was so made available by the Agent until the date the Agent recovers such
amount at a rate per annum equal to (x) in the case of payment by a Lender, the
Federal Funds Effective Rate for such day for the first three days and,
thereafter, the interest rate applicable to the relevant Loan or (y) in the case
of payment by any Borrower, the interest rate applicable to the relevant Loan.

     2.21.  Market Disruption. Notwithstanding the satisfaction of all
conditions referred to in Article II and Article IV with respect to any Advance
in any Agreed Currency other than Dollars, if there shall occur on or prior to
the date of such Advance any change in national or international financial,
political or economic conditions or currency exchange rates or exchange controls
which would in the reasonable opinion of the Agent or the Required Lenders make
it impracticable for the Eurocurrency Loans comprising such Advance to be
denominated in the Agreed Currency specified by the applicable Borrower, then
the Agent shall forthwith give notice thereof to such Borrower and the Lenders,
and such Loans shall not be denominated in such Agreed Currency but shall be
made on such Borrowing Date in Dollars, in an aggregate principal amount equal
to the Dollar Amount of the aggregate principal amount specified in the related
Borrowing Notice or Conversion/Continuation Notice, as the case may be, as
Floating Rate Loans, unless such Borrower notifies the Agent at least one
Business Day before such date that (i) it elects not to borrow on such date or
(ii) it elects to borrow on such date in a different Agreed Currency, provided
that (a) the denomination of such Loans in such different Agreed

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<PAGE>

Currency would in the opinion of the Agent and the Required Lenders be
practicable and (b) such borrowing shall be in an aggregate principal amount
equal to the Dollar Amount of the aggregate principal amount specified in the
related Borrowing Notice or Conversion/Continuation Notice, as the case may be.

     2.22.  Judgment Currency. If for the purposes of obtaining judgment in any
court it is necessary to convert a sum due from any Borrower hereunder in the
currency expressed to be payable herein (the "specified currency") into another
currency, the parties hereto agree, to the fullest extent that they may
effectively do so, that the rate of exchange used shall be that at which in
accordance with normal banking procedures the Agent could purchase the specified
currency with such other currency at the Agent's main Chicago office on the
Business Day preceding that on which final, non-appealable judgment is given.
The obligations of the Borrowers in respect of any sum due to any Lender or the
Agent hereunder shall, notwithstanding any judgment in a currency other than the
specified currency, be discharged only to the extent that on the Business Day
following receipt by such Lender or the Agent (as the case may be) of any sum
adjudged to be so due in such other currency such Lender or the Agent (as the
case may be) may in accordance with normal, reasonable banking procedures
purchase the specified currency with such other currency. If the amount of the
specified currency so purchased is less than the sum originally due to such
Lender or the Agent, as the case may be, in the specified currency, each
Borrower agrees, to the fullest extent that it may effectively do so, as a
separate obligation and notwithstanding any such judgment, to indemnify such
Lender or the Agent, as the case may be, against such loss, and if the amount of
the specified currency so purchased exceeds (a) the sum originally due to any
Lender or the Agent, as the case may be, in the specified currency and (b) any
amounts shared with other Lenders as a result of allocations of such excess as a
disproportionate payment to such Lender under Section 12.2, such Lender or the
Agent, as the case may be, agrees to remit such excess to the applicable
Borrower.

     2.23.  Replacement of Lender. If any Borrower is required pursuant to
Section 3.1, 3.2 or 3.5 to make any additional payment to any Lender or if any
Lender's obligation to make or continue, or to convert Floating Rate Advances
into, Eurocurrency Advances shall be suspended pursuant to Section 3.3 (any
Lender so affected an "Affected Lender"), the Company may elect, if such amounts
continue to be charged or such suspension is still effective, to terminate or
replace the Revolving Loan Commitment and Term Loans of such Affected Lender,
provided that no Default or Unmatured Default shall have occurred and be
continuing at the time of such termination or replacement, and provided further
that, concurrently with such termination or replacement, (i) if the Affected
Lender is being replaced, another bank or other entity which is reasonably
satisfactory to the Company and the Agent shall agree, as of such date, to
purchase for cash the Outstanding Revolving Credit Exposure and Term Loans of
the Affected Lender pursuant to an Assignment Agreement substantially in the
form of Exhibit C and to become a Lender for all purposes under this Agreement
and to assume all obligations of the Affected Lender to be terminated as of such
date and to comply with the requirements of Section 12.3 applicable to
assignments, and (ii) the Borrowers shall pay to such Affected Lender in
immediately available funds on the day of such replacement (A) all interest,
fees and other amounts then accrued but unpaid to such Affected Lender by the
Borrowers hereunder to and including the date of termination, including without
limitation payments due to such Affected Lender under Sections 3.1, 3.2 and 3.5,
and (B) an amount, if any, equal to the payment which would have been due to
such Lender on the day of such replacement under Section 3.4 had the

                                       33

<PAGE>

Loans of such Affected Lender been prepaid on such date rather than sold to the
replacement Lender, in each case to the extent not paid by the purchasing Lender
and (iii) if the Affected Lender is being terminated, the Borrowers shall pay to
such Affected Lender all Obligations due to such Affected Lender (including the
amounts described in the immediately preceding clauses (i) and (ii) plus the
outstanding principal balance of such Affected Lender's Revolving Loans and Term
Loans).

     2.24.  Facility LCs.

            2.24.1   Issuance; Transitional Facility LCs.

                     (a)  Issuance. The LC Issuers hereby agree, on the terms
            and conditions set forth in this Agreement, to issue commercial and
            standby Letters of Credit in Dollars (each, together with the
            Letters of Credit deemed issued by the LC Issuers hereunder pursuant
            to Section 2.24.1(b), a "Facility LC") and to renew, extend,
            increase, decrease or otherwise modify each Facility LC ("Modify,"
            and each such action, a "Modification"), from time to time from and
            including the Closing Date and prior to the Revolving Loan
            Termination Date upon the request of the applicable Borrower;
            provided that immediately after each such Facility LC is issued or
            Modified, (i) the aggregate amount of the outstanding LC Obligations
            shall not exceed $15,000,000 and (ii) the Aggregate Outstanding
            Revolving Credit Exposure shall not exceed the Aggregate Revolving
            Loan Commitment. No Facility LC shall have an expiry date later than
            the earlier of (x) the fifth Business Day prior to the Revolving
            Loan Termination Date and (y) one year after its issuance; provided
            that any Facility LC with a one-year tenor may provide for the
            renewal thereof for additional one year periods (which shall in no
            event extend beyond the date referred to in clause (x) above).

                     (b)  Transitional Provision. Schedule 2.24 contains a
            schedule of certain Letters of Credit issued for the account of the
            Borrowers prior to the Closing Date. Subject to the satisfaction of
            the conditions contained in Sections 4.1 and 4.2, from and after the
            Closing Date such Letters of Credit shall be deemed to be Facility
            LCs issued pursuant to this Section 2.24.

            2.24.2   Participations. On the Closing Date, with respect to the
     Facility LCs identified on Schedule 2.24, and upon the issuance or
     Modification by the applicable LC Issuer of a Facility LC in accordance
     with this Section 2.24, such LC Issuer shall be deemed, without further
     action by any party hereto, to have unconditionally and irrevocably sold to
     each Lender, and each Lender shall be deemed, without further action by any
     party hereto, to have unconditionally and irrevocably purchased from such
     LC Issuer, a participation in such Facility LC (and each Modification
     thereof) and the related LC Obligations in proportion to its Revolving Loan
     Pro Rata Share.

            2.24.3   Notice. The applicable Borrower shall give the applicable
     LC Issuer notice prior to 10:00 a.m. (Chicago time) at least five Business
     Days prior to the proposed date of issuance or Modification of each
     Facility LC, specifying the beneficiary, the proposed date of issuance (or
     Modification) and the expiry date of such Facility LC,

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<PAGE>

     and describing the proposed terms of such Facility LC and the nature of the
     transactions proposed to be supported thereby. The applicable LC Issuer
     shall promptly notify the Agent, and, upon issuance only, the Agent shall
     promptly notify each Lender, of the contents thereof and of the amount of
     such Lender's participation in such Facility LC. The issuance or
     Modification by any LC Issuer of any Facility LC shall, in addition to the
     conditions precedent set forth in Article IV (the satisfaction of which
     such LC Issuer shall have no duty to ascertain), be subject to the
     conditions precedent that such Facility LC shall be satisfactory to such LC
     Issuer and that the applicable Borrower shall have executed and delivered
     such application agreement and/or such other instruments and agreements
     relating to such Facility LC as such LC Issuer shall have reasonably
     requested (each, a "Facility LC Application"). In the event of any conflict
     between the terms of this Agreement and the terms of any Facility LC
     Application, the terms of this Agreement shall control.

            2.24.4   LC Fees. The Company shall pay to the Agent, for the
     account of the Lenders ratably in accordance with their respective
     Revolving Loan Pro Rata Shares, (i) with respect to each standby Facility
     LC, a letter of credit fee at a per annum rate equal to the Applicable
     Margin for Eurocurrency Loans in effect from time to time on the average
     daily undrawn amount under such Facility LC, such fee to be payable in
     arrears on each Payment Date, and (ii) with respect to each commercial
     Facility LC, a one-time letter of credit fee in an amount to be agreed upon
     between the Company and the applicable LC Issuer based upon the initial
     stated amount (or, with respect to a Modification of any such commercial
     Facility LC which increases the stated amount thereof, such increase in the
     stated amount) thereof, such fee to be payable on the date of such issuance
     or increase. The applicable Borrower shall also pay to each LC Issuer for
     its own account (x) at the time of such LC Issuer's issuance of any standby
     Facility LC, a fronting fee in an amount equal to 0.125% multiplied by the
     face amount of such standby Facility LC, and (y) documentary and processing
     charges in connection with the issuance, or Modification cancellation,
     negotiation, or transfer of, and draws under Facility LCs in accordance
     with the applicable LC Issuer's standard schedule for such charges as in
     effect from time to time. Each fee described in this Section 2.24.4 shall
     constitute an "LC Fee".

            2.24.5   Administration; Reimbursement by Lenders. Upon receipt from
     the beneficiary of any Facility LC of any demand for payment under such
     Facility LC, the applicable LC Issuer shall notify the Agent and the Agent
     shall promptly notify the applicable Borrower and each other Lender as to
     the amount to be paid by such LC Issuer as a result of such demand and the
     proposed payment date to such beneficiary (the "LC Payment Date");
     provided, however, that the failure of such LC Issuer to so notify such
     Borrower shall not in any manner affect the obligations of any Borrower to
     reimburse such LC Issuer pursuant to Section 2.24.6. The responsibility of
     each LC Issuer to the Borrowers and each Lender shall be only to determine
     that the documents (including each demand for payment) delivered under each
     Facility LC issued by such LC Issuer in connection with such presentment
     shall be in conformity in all material respects with such Facility LC. Each
     LC Issuer shall endeavor to exercise the same care in the issuance and
     administration of the Facility LCs issued by such LC Issuer as it does with
     respect to Letters of Credit in which no participations are granted, it
     being understood that in the absence of any gross negligence or willful
     misconduct by the applicable LC

                                       35

<PAGE>

     Issuer, each Lender shall be unconditionally and irrevocably liable without
     regard to the occurrence of any Default or any condition precedent
     whatsoever, to reimburse such LC Issuer on demand for (i) such Lender's
     Revolving Loan Pro Rata Share of the amount of each payment made by such LC
     Issuer under each Facility LC issued by such LC Issuer to the extent such
     amount is not reimbursed by the Borrowers pursuant to Section 2.24.6 below,
     plus (ii) interest on the foregoing amount to be reimbursed by such Lender,
     for each day from the date of the applicable LC Issuer's demand for such
     reimbursement (or, if such demand is made after 11:00 a.m. (Chicago time)
     on such date, from the next succeeding Business Day) to the date on which
     such Lender pays the amount to be reimbursed by it, at a rate of interest
     per annum equal to the Federal Funds Effective Rate for the first three
     days and, thereafter, at a rate of interest equal to the rate applicable to
     Floating Rate Advances.

            2.24.6   Reimbursement by Borrowers. The Borrowers shall be
     irrevocably and unconditionally obligated to reimburse the LC Issuers on or
     before the applicable LC Payment Date for any amounts to be paid by any LC
     Issuer upon any drawing under any Facility LC issued by such LC Issuer,
     without presentment, demand, protest or other formalities of any kind;
     provided that no Borrower nor any Lender shall hereby be precluded from
     asserting any claim for direct (but not consequential) damages suffered by
     any Borrower or such Lender to the extent, but only to the extent, caused
     by (i) the willful misconduct or gross negligence of the applicable LC
     Issuer in determining whether a request presented under any Facility LC
     issued by it complied with the terms of such Facility LC or (ii) the
     applicable LC Issuer's failure to pay under any Facility LC issued by it
     after the presentation to it of a request strictly complying with the terms
     and conditions of such Facility LC. All such amounts paid by any LC Issuer
     and remaining unpaid by the Borrowers shall bear interest, payable on
     demand, for each day until paid at a rate per annum equal to (x) the rate
     applicable to Floating Rate Advances for such day if such day falls on or
     before the applicable LC Payment Date and (y) the sum of 2% plus the rate
     applicable to Floating Rate Advances for such day if such day falls after
     such LC Payment Date. Each LC Issuer will pay to each Lender ratably in
     accordance with its Revolving Loan Pro Rata Share all amounts received by
     it from the Borrowers for application in payment, in whole or in part, of
     the Reimbursement Obligation in respect of any Facility LC issued by such
     LC Issuer, but only to the extent such Lender has made payment to such LC
     Issuer in respect of such Facility LC pursuant to Section 2.24.5. Subject
     to the terms and conditions of this Agreement (including, without
     limitation, the submission of a Borrowing Notice in compliance with Section
     2.9 and the satisfaction of the applicable conditions precedent set forth
     in Article IV), the Borrowers may request an Advance hereunder for the
     purpose of satisfying any Reimbursement Obligation.

            2.24.7   Obligations Absolute. The Borrowers' obligations under this
     Section 2.24 shall be absolute and unconditional under any and all
     circumstances and irrespective of any setoff, counterclaim or defense to
     payment which any Borrower may have or have had against any LC Issuer, any
     Lender or any beneficiary of a Facility LC. The Borrowers further agree
     with the LC Issuers and the Lenders that the LC Issuers and the Lenders
     shall not be responsible for, and the Borrowers' Reimbursement Obligation
     in respect of any Facility LC shall not be affected by, among other things,
     the validity or genuineness of documents or of any endorsements thereon,
     even if such documents

                                       36

<PAGE>

     should in fact prove to be in any or all respects invalid, fraudulent or
     forged, or any dispute between or among any Borrower, any of their
     respective Affiliates, the beneficiary of any Facility LC or any financing
     institution or other party to whom any Facility LC may be transferred or
     any claims or defenses whatsoever of any Borrower or of any of their
     respective Affiliates against the beneficiary of any Facility LC or any
     such transferee. No LC Issuer shall be liable for any error, omission,
     interruption or delay in transmission, dispatch or delivery of any message
     or advice, however transmitted, in connection with any Facility LC. Each
     Borrower agrees that any action taken or omitted by any LC Issuer or any
     Lender under or in connection with each Facility LC and the related drafts
     and documents, if done without gross negligence or willful misconduct,
     shall be binding upon such Borrower and shall not put any LC Issuer or any
     Lender under any liability to any Borrower. Nothing in this Section 2.24.7
     is intended to limit the right of any Borrower to make a claim against any
     LC Issuer for damages as contemplated by the proviso to the first sentence
     of Section 2.24.6.

            2.24.8   Actions of LC Issuers. Each LC Issuer shall be entitled to
     rely, and shall be fully protected in relying, upon any Facility LC, draft,
     writing, resolution, notice, consent, certificate, affidavit, letter,
     cablegram, telegram, telecopy, telex or teletype message, statement, order
     or other document believed by it to be genuine and correct and to have been
     signed, sent or made by the proper Person or Persons, and upon advice and
     statements of legal counsel, independent accountants and other experts
     selected by such LC Issuer. Each LC Issuer shall be fully justified in
     failing or refusing to take any action under this Agreement unless it shall
     first have received such advice or concurrence of the Required Lenders as
     it reasonably deems appropriate or it shall first be indemnified to its
     reasonable satisfaction by the Lenders against any and all liability and
     expense which may be incurred by it by reason of taking or continuing to
     take any such action. Notwithstanding any other provision of this Section
     2.24, each LC Issuer shall in all cases be fully protected in acting, or in
     refraining from acting, under this Agreement in accordance with a request
     of the Required Lenders, and such request and any action taken or failure
     to act pursuant thereto shall be binding upon the Lenders and any future
     holders of a participation in any Facility LC.

            2.24.9   Indemnification. The Borrowers hereby agree to indemnify
     and hold harmless each Lender, each LC Issuer and the Agent, and their
     respective directors, officers, agents and employees from and against any
     and all claims and damages, losses, liabilities, reasonable costs or
     expenses which such Lender, such LC Issuer or the Agent may incur (or which
     may be claimed against such Lender, such LC Issuer or the Agent by any
     Person whatsoever) by reason of or in connection with the issuance,
     execution and delivery or transfer of or payment or failure to pay under
     any Facility LC or any actual or proposed use of any Facility LC,
     including, without limitation, any claims, damages, losses, liabilities,
     reasonable costs or expenses which any LC Issuer may incur by reason of or
     in connection with (i) the failure of any other Lender to fulfill or comply
     with its obligations to such LC Issuer hereunder (but nothing herein
     contained shall affect any rights any Borrower may have against any
     defaulting Lender) or (ii) by reason of or on account of such LC Issuer
     issuing any Facility LC which specifies that the term "Beneficiary"
     included therein includes any successor by operation of law of the named
     Beneficiary, but which Facility LC does not require that any drawing by any
     such

                                       37

<PAGE>

     successor Beneficiary be accompanied by a copy of a legal document,
     satisfactory to such LC Issuer, evidencing the appointment of such
     successor Beneficiary; provided that no Borrower shall be required to
     indemnify any Lender, any LC Issuer or the Agent for any claims, damages,
     losses, liabilities, costs or expenses to the extent, but only to the
     extent, caused by (x) the willful misconduct or gross negligence of the
     applicable LC Issuer in determining whether a request presented under any
     Facility LC issued by such LC Issuer complied with the terms of such
     Facility LC or (y) any LC Issuer's failure to pay under any Facility LC
     issued by such LC Issuer after the presentation to it of a request strictly
     complying with the terms and conditions of such Facility LC. Nothing in
     this Section 2.24.9 is intended to limit the obligations of any Borrower
     under any other provision of this Agreement.

            2.24.10  Lenders' Indemnification. Each Lender shall, ratably in
     accordance with its Revolving Loan Pro Rata Share, indemnify each LC
     Issuer, its affiliates and their respective directors, officers, agents and
     employees (to the extent not reimbursed by any Borrower) against any cost,
     expense (including reasonable counsel fees and disbursements), claim,
     demand, action, loss or liability (except such as result from such
     indemnitees' gross negligence or willful misconduct or the applicable LC
     Issuer's failure to pay under any Facility LC issued by such LC Issuer
     after the presentation to it of a request strictly complying with the terms
     and conditions of such Facility LC) that such indemnitees may suffer or
     incur in connection with this Section 2.24 or any action taken or omitted
     by such indemnitees hereunder.

            2.24.11  Facility LC Collateral Account. The Borrowers agree that
     the Company will, on behalf of each of the Borrowers, upon the request of
     the Agent or the Required Lenders and until the final expiration date of
     any Facility LC and thereafter as long as any amount is payable to the LC
     Issuers or the Lenders in respect of any Facility LC, maintain a special
     collateral account pursuant to arrangements satisfactory to the Agent (the
     "Facility LC Collateral Account") at the Agent's office at the address
     specified pursuant to Article XIII, in the name of the Company but under
     the sole dominion and control of the Agent, for the benefit of the Lenders
     and in which no Borrower shall have any interest other than as set forth in
     Section 8.1. Each Borrower hereby pledges, assigns and grants to the Agent,
     on behalf of and for the ratable benefit of the Lenders and the LC Issuers,
     a security interest in all of such Borrower's right, title and interest in
     and to all funds which may from time to time be on deposit in the Facility
     LC Collateral Account to secure the prompt and complete payment and
     performance of the Obligations. The Agent will invest any funds on deposit
     from time to time in the Facility LC Collateral Account in certificates of
     deposit of Bank One having a maturity not exceeding 30 days. Nothing in
     this Section 2.24.11 shall either obligate the Agent to require any
     Borrower to deposit any funds in the Facility LC Collateral Account or
     limit the right of the Agent to release any funds held in the Facility LC
     Collateral Account in each case other than as required by Section 8.1.

            2.24.12  Rights as a Lender. In its capacity as a Lender, each LC
     Issuer shall have the same rights and obligations as any other Lender.

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<PAGE>

     2.25.  Subsidiary Borrowers. The Company may at any time or from time to
time, with the consent of the Agent, add as a party to this Agreement any
Domestic Subsidiary that is a Wholly-Owned Subsidiary to be a Subsidiary
Borrower hereunder by the execution and delivery to the Agent and the Lenders of
(a) a duly completed Assumption Letter by such Domestic Subsidiary, with the
acknowledgement of the Agent and written consent of the Borrowers at the foot
thereof, (b) such opinions, agreements, documents, certificates or other items
as may be required by Section 4.3, such documents with respect to any additional
Subsidiary Borrowers to be substantially similar in form and substance to the
Loan Documents executed on or about the date hereof by the Subsidiary Borrowers
parties hereto as of the Closing Date. Upon such execution, delivery and consent
such Subsidiary shall for all purposes be a party hereto as a Subsidiary
Borrower as fully as if it had executed and delivered this Agreement. So long as
the principal of and interest on any Credit Extensions made to any Subsidiary
Borrower under this Agreement shall have been repaid or paid in full, all
Facility LCs issued for the account of such Subsidiary Borrower have expired or
been returned and terminated and all other obligations of such Subsidiary
Borrower under this Agreement shall have been fully performed, the Company may,
by not less than five (5) Business Days' prior notice to the Agent (which shall
promptly notify the Lenders thereof), terminate such Subsidiary Borrower's
status as a "Subsidiary Borrower" (it being understood and agreed that such
Subsidiary Borrower shall remain liable with respect to indemnification and
similar obligations incurred prior to such termination). The Agent shall give
the Lenders written notice of the addition of any Subsidiary Borrowers to this
Agreement.

                                   ARTICLE III

                             YIELD PROTECTION; TAXES

     3.1.   Yield Protection. If, on or after the Closing Date, the adoption of
any law or any governmental or quasi-governmental rule, regulation, policy,
guideline or directive (whether or not having the force of law), or any change
in any such law, rule, regulation, policy, guideline or directive or in the
interpretation or administration thereof by any governmental or
quasi-governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender or
applicable Lending Installation or any LC Issuer with any request or directive
(whether or not having the force of law) of any such authority, central bank or
comparable agency:

     (i)    subjects any Lender or any applicable Lending Installation or any LC
            Issuer to any Taxes, or changes the basis of taxation of payments
            (other than with respect to Excluded Taxes) to any Lender or any LC
            Issuer in respect of its Revolving Loan Commitments, Loans, Facility
            LCs or participations therein, or

     (ii)   imposes or increases or deems applicable any reserve, assessment,
            insurance charge, special deposit or similar requirement against
            assets of, deposits with or for the account of, or credit extended
            by, any Lender or any applicable Lending Installation or any LC
            Issuer (other than reserves and assessments taken into account in
            determining the interest rate applicable to Eurocurrency Advances)
            with respect to its Revolving Loan Commitment, Loans, Facility LCs
            or participations therein, or

                                       39

<PAGE>

     (iii)  imposes any other condition the result of which is to increase the
            cost to any Lender, any applicable Lending Installation or any LC
            Issuer of making, funding or maintaining its Revolving Loan
            Commitment, Loans or of issuing or participating in Facility LCs, or
            reduces any amount receivable by any Lender or any applicable
            Lending Installation or any LC Issuer in connection with its
            Revolving Loan Commitment or Loans or Facility LCs (including
            participations therein), or requires any Lender or any applicable
            Lending Installation or any LC Issuer to make any payment calculated
            by reference to the amount of Revolving Loan Commitment or Loans or
            Facility LCs (including participations therein) held or interest or
            LC Fees received by it, by an amount deemed material by such Lender
            or such LC Issuer, as applicable,

and the result of any of the foregoing is to increase the cost to such Lender or
applicable Lending Installation or such LC Issuer of making or maintaining its
Loans (including, without limitation, any conversion of any Loan denominated in
an Agreed Currency other than euro into a Loan denominated in euro) or Revolving
Loan Commitment or of issuing or participating in Facility LCs, as applicable,
or to reduce the return received by such Lender or applicable Lending
Installation or LC Issuer in connection with such Loans, Revolving Loan
Commitment or Facility LCs (including participations therein), then, within 15
days of demand, accompanied by the written statement required by Section 3.6, by
such Lender or LC Issuer, the Borrowers shall pay such Lender or LC Issuer such
additional amount or amounts as will compensate such Lender or LC Issuer for
such increased cost or reduction in amount received.

     3.2.   Changes in Capital Adequacy Regulations. If a Lender or any LC
Issuer determines the amount of capital required or expected to be maintained by
such Lender or such LC Issuer, any Lending Installation of such Lender or such
LC Issuer or any corporation controlling such Lender or such LC Issuer is
increased as a result of a Change, then, within 15 days of demand, accompanied
by the written statement required by Section 3.6, by such Lender or such LC
Issuer, the Borrowers shall pay such Lender or such LC Issuer the amount
necessary to compensate for any shortfall in the rate of return on the portion
of such increased capital which such Lender or such LC Issuer determines is
attributable to this Agreement, its Outstanding Revolving Credit Exposure, its
Term Loans or its Revolving Loan Commitment or its commitment to issue Facility
LCs, as applicable, hereunder (after taking into account such Lender's or such
LC Issuer's policies as to capital adequacy). "Change" means (i) any change
after the Closing Date in the Risk-Based Capital Guidelines or (ii) any adoption
of, or change in, or change in the interpretation or administration of any other
law, governmental or quasi-governmental rule, regulation, policy, guideline,
interpretation, or directive (whether or not having the force of law) after the
Closing Date which affects the amount of capital required or expected to be
maintained by any Lender or any LC Issuer or any Lending Installation or any
corporation controlling any Lender or any LC Issuer. "Risk-Based Capital
Guidelines" means (i) the risk-based capital guidelines in effect in the United
States on the Closing Date, including transition rules, and (ii) the
corresponding capital regulations promulgated by regulatory authorities outside
the United States implementing the July 1988 report of the Basle Committee on
Banking Regulation and Supervisory Practices Entitled "International Convergence
of Capital Measurements and Capital Standards," including transition rules, and
any amendments to such regulations adopted prior to the Closing Date.

                                       40

<PAGE>

     3.3.   Availability of Types of Advances. If (x) any Lender determines
that maintenance of its Eurocurrency Loans at a suitable Lending Installation
would violate any applicable law, rule, regulation, or directive, whether or not
having the force of law, or (y) the Required Lenders determine that (i) deposits
of a type, currency and maturity appropriate to match fund Eurocurrency Advances
are not available or (ii) the interest rate applicable to Eurocurrency Advances
does not accurately reflect the cost of making or maintaining Eurocurrency
Advances, or (iii) no reasonable basis exists for determining the Eurocurrency
Reference Rate, then the Agent shall suspend the availability of Eurocurrency
Advances and require any affected Eurocurrency Advances to be repaid or
converted to Floating Rate Advances on the respective last days of the then
current Interest Periods with respect to such Loans or within such earlier
period as required by law, subject to the payment of any funding indemnification
amounts required by Section 3.4.

     3.4.   Funding Indemnification. If any payment of a Eurocurrency Advance
occurs on a date which is not the last day of the applicable Interest Period,
whether because of acceleration, prepayment or otherwise, or a Eurocurrency
Advance is not made or continued, or a Floating Rate Advance is not converted
into a Eurocurrency Advance, on the date specified by the applicable Borrower
for any reason other than default by the Lenders, or a Eurocurrency Advance is
not prepaid on the date specified by the applicable Borrower for any reason, the
Borrowers will, jointly and severally, indemnify each Lender for any reasonable
loss or cost incurred by it resulting therefrom, including, without limitation,
any reasonable loss or cost in liquidating or employing deposits acquired to
fund or maintain such Eurocurrency Advance.

     3.5.   Taxes. (i) All payments by the Borrowers to or for the account of
any Lender or any LC Issuer or the Agent hereunder or under any Note shall be
made free and clear of and without deduction for any and all Taxes. If any
Borrower shall be required by law to deduct any Taxes from or in respect of any
sum payable hereunder to any Lender, any LC Issuer or the Agent, (a) the sum
payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section 3.5) such Lender, such LC Issuer or the Agent (as the case may be)
receives an amount equal to the sum it would have received had no such
deductions been made, (b) such Borrower shall make such deductions, (c) such
Borrower shall pay the full amount deducted to the relevant authority in
accordance with applicable law and (d) such Borrower shall furnish to the Agent
the original copy of a receipt evidencing payment thereof or, if a receipt
cannot be obtained with reasonable efforts, such other evidence of payment as is
reasonably acceptable to the Agent, in each case within 30 days after such
payment is made.

     (ii)   In addition, the Borrowers shall pay any present or future stamp or
            documentary taxes and any other excise or property taxes, charges or
            similar levies which arise from any payment made hereunder or under
            any Note or Facility LC Application or from the execution or
            delivery of, or otherwise with respect to, this Agreement or any
            Note or Facility LC Application or any other Loan Document ("Other
            Taxes").

     (iii)  The Borrowers shall indemnify the Agent, each LC Issuer and each
            Lender for the full amount of Taxes or Other Taxes (including,
            without limitation, any Taxes or Other Taxes imposed on amounts
            payable under this Section 3.5) paid by the

                                       41

<PAGE>

            Agent, such LC Issuer or such Lender as a result of its Revolving
            Loan Commitment, any Credit Extensions made by it hereunder, any
            Facility LC issued or participated in by it hereunder, or otherwise
            in connection with its participation in this Agreement and any
            liability (including penalties, interest and expenses) arising
            therefrom or with respect thereto. Payments due under this
            indemnification shall be made within 30 days of the date the Agent,
            such LC Issuer or such Lender makes demand therefor pursuant to
            Section 3.6.

     (iv)   Each Lender that is not incorporated under the laws of the United
            States of America or a state thereof (each a "Non-U.S. Lender")
            agrees that it will, not more than ten Business Days after the date
            on which it becomes a party to this Agreement (but in any event
            before a payment is due to it hereunder), (i) deliver to each of the
            Company and the Agent two duly completed copies of United States
            Internal Revenue Service Form W-8BEN or W-8ECI or successor forms,
            certifying in either case that such Non-U.S. Lender is entitled to
            receive payments under this Agreement or under any Note or Facility
            LC Application without deduction or withholding of any United States
            federal income taxes, or (ii) in the case of a Non-U.S. Lender that
            is fiscally transparent, deliver to the Agent a United States
            Internal Revenue Service Form W-8IMY or successor form together with
            the applicable accompanying duly completed copies of United States
            Internal Revenue Service applicable Forms W-8 or W-9 or successor
            forms, as the case may be, and certify that it is entitled to an
            exemption from United States withholding tax. Each Non-U.S. Lender
            further undertakes to deliver to each of the Company and the Agent
            renewals or additional copies of such form (or any successor form)
            (x) on or before the date that such form expires or becomes
            obsolete, (y) after the occurrence of any event requiring a change
            in the most recent forms so delivered by it, and (z) from time to
            time upon reasonable request by the Company or the Agent. All forms
            or amendments described in the preceding sentence shall certify that
            such Lender is entitled to receive payments under this Agreement
            without deduction or withholding of any United States federal income
            taxes, unless an event (including without limitation any change in
            treaty, law or regulation) has occurred prior to the date on which
            any such delivery would otherwise be required which renders all such
            forms inapplicable or which would prevent such Lender from duly
            completing and delivering any such form or amendment with respect to
            it and such Lender advises the Company and the Agent that it is not
            capable of receiving payments without any deduction or withholding
            of United States federal income tax.

     (v)    For any period during which a Non-U.S. Lender has failed to provide
            the Company with an appropriate form pursuant to clause (iv) above
            (unless such failure is due to a change in treaty, law or
            regulation, or any change in the interpretation or administration
            thereof by any governmental authority, occurring subsequent to the
            date on which a form originally was required to be provided), such
            Non-U.S. Lender shall not be entitled to indemnification under this
            Section 3.5 with respect to Taxes imposed by the United States;
            provided that, should a Non-U.S. Lender which is otherwise exempt
            from or subject to a reduced rate of withholding tax become subject
            to Taxes because of its failure to deliver a form

                                       42

<PAGE>

            required under clause (iv) above, the Company shall take such steps
            as such Non-U.S. Lender shall reasonably request to assist such
            Non-U.S. Lender to recover such Taxes.

     (vi)   Any Lender that is entitled to an exemption from or reduction of
            withholding tax with respect to payments under this Agreement or any
            Note pursuant to the law of any relevant jurisdiction or any treaty
            shall deliver to the Company (with a copy to the Agent), at the time
            or times prescribed by applicable law, such properly completed and
            executed documentation prescribed by applicable law as will permit
            such payments to be made without withholding or at a reduced rate.

     (vii)  If the U.S. Internal Revenue Service or any other governmental
            authority of the United States or any other country or any political
            subdivision thereof asserts a claim that the Agent did not properly
            withhold tax from amounts paid to or for the account of any Lender
            (because the appropriate form was not delivered or properly
            completed, because such Lender failed to notify the Agent of a
            change in circumstances which rendered its exemption from
            withholding ineffective, or for any other reason), such Lender shall
            indemnify the Agent fully for all amounts paid, directly or
            indirectly, by the Agent as tax, withholding therefor, or otherwise,
            including penalties and interest, and including taxes imposed by any
            jurisdiction on amounts payable to the Agent under this subsection,
            together with all costs and expenses related thereto (including
            attorneys fees of attorneys for the Agent, which attorneys may be
            employees of the Agent). The obligations of the Lenders under this
            Section 3.5(vii) shall survive the payment of the Obligations and
            termination of this Agreement.

     3.6.   Lender Statements; Survival of Indemnity. Each Lender shall deliver
a written statement of such Lender to the Company (with a copy to the Agent) as
to the amount due, if any, under Section 3.1, 3.2, 3.4 or 3.5. Such written
statement shall set forth in reasonable detail the calculations upon which such
Lender determined such amount and shall be final, conclusive and binding on the
Borrowers in the absence of manifest error. Determination of amounts payable
under such Sections in connection with a Eurocurrency Loan shall be calculated
as though each Lender funded its Eurocurrency Loan through the purchase of a
deposit of the type, currency and maturity corresponding to the deposit used as
a reference in determining the Eurocurrency Rate applicable to such Loan,
whether in fact that is the case or not. Unless otherwise provided herein, the
amount specified in the written statement of any Lender shall be payable on
demand after receipt by the Company of such written statement. The obligations
of the Borrowers under Sections 3.1, 3.2, 3.4 and 3.5 shall survive payment of
the Obligations and termination of this Agreement.

     3.7.   Alternative Lending Installation. To the extent reasonably possible,
each Lender shall designate an alternate Lending Installation with respect to
its Eurocurrency Loans to reduce any liability of the Borrowers to such Lender
under Sections 3.1, 3.2 and 3.5 or to avoid the unavailability of Eurocurrency
Advances under Section 3.3, so long as such designation is not, in the judgment
of such Lender, reasonably disadvantageous to such Lender. A Lender's
designation of an alternative Lending Installation shall not affect any
Borrower's rights under Section 2.23 to replace a Lender.

                                       43

<PAGE>

                                   ARTICLE IV

                              CONDITIONS PRECEDENT

     4.1.   Effectiveness of Commitments. This Agreement shall not become
effective, nor shall any Lender be required to make any Credit Extension
hereunder, unless on or before November 30, 2003 the following conditions
precedent have been satisfied and the Company has furnished to the Agent with
sufficient copies for the Lenders:

            4.1.1    Copies of the articles or certificate of incorporation (or
     the equivalent thereof) of each Credit Party, in each case, together with
     all amendments thereto, and a certificate of good standing, each certified
     by the appropriate governmental officer in its jurisdiction of organization
     and accompanied by a certification by the Secretary or Assistant Secretary
     of such Credit Party that there have been no changes in the matters
     certified by such governmental officer since the date of such governmental
     officer's certification.

            4.1.2    Copies, certified by the Secretary or Assistant Secretary
     (or the equivalent thereof) of each Credit Party, in each case, of its
     by-laws and of its Board of Directors' resolutions and of resolutions or
     actions of any other body authorizing the execution of the Loan Documents
     to which such Credit Party is a party.

            4.1.3    An incumbency certificate, executed by the Secretary or
     Assistant Secretary (or the equivalent thereof) of each Credit Party which
     shall identify by name and title and bear the signatures of the Authorized
     Officers and any other officers of each such Credit Party authorized to
     sign the Loan Documents to which it is a party, upon which certificate the
     Agent and the Lenders shall be entitled to rely until informed of any
     change in writing by the applicable Credit Party.

            4.1.4    A certificate reasonably acceptable to the Agent signed by
     the chief financial officer of the Company, stating that on the Closing
     Date (a) no Default or Unmatured Default has occurred and is continuing,
     (b) all of the representations and warranties in Article V shall be true
     and correct (or in the case of representations and warranties applicable to
     AbilityOne prior to the date of the AbilityOne Acquisition, true and
     correct to the best of such officer's knowledge) as of such date and (c) no
     material adverse change in the business, Property, condition (financial or
     otherwise), operations or results of operations, performance or prospects
     of the Company and its Subsidiaries (including for the period commencing on
     September 12, 2003, AbilityOne and its Subsidiaries) taken as a whole has
     occurred since April 26, 2003 and, to the best of such officer's knowledge,
     of AbilityOne and its Subsidiaries taken as a whole has occurred since
     December 31, 2002.

            4.1.5    An initial compliance certificate, dated as of the Closing
     Date and reflecting calculations as of July 26, 2003, in substantially the
     form of Exhibit B hereto.

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<PAGE>

            4.1.6    Written opinions of Matthew Levitt, counsel to the Credit
     Parties, in form and substance reasonably satisfactory to the Agent and
     addressed to the Lenders in substantially the forms of Exhibit A hereto.

            4.1.7    Duly executed originals of this Agreement from each of the
     Credit Parties parties thereto and duly executed originals of any Note(s)
     requested by a Lender pursuant to Section 2.15 payable to the order of each
     such requesting Lender, and copies of the AbilityOne Acquisition Agreement.

            4.1.8    Written money transfer instructions, in substantially the
     form of Exhibit D, addressed to the Agent and signed by an Authorized
     Officer of the Company, together with such other related money transfer
     authorizations as the Agent may have reasonably requested.

            4.1.9    The Agent shall have determined that (i) there is an
     absence of any material adverse change or disruption in primary or
     secondary loan syndication markets, financial markets or in capital markets
     generally that would likely impair syndication of the Loans hereunder, and
     (ii) the Company has fully cooperated with the Agent's syndication efforts,
     including, without limitation, by providing the Agent with information
     regarding the Company's and its Subsidiaries' operations and prospects and
     such other information as the Agent deems necessary to successfully
     syndicate the Loans hereunder.

            4.1.10   Evidence satisfactory to the Agent that the Existing Credit
     Agreement shall have been or shall simultaneously on the Closing Date be
     terminated (except for those provisions that expressly survive the
     termination thereof), all loans outstanding and other amounts owed to the
     lenders or agents thereunder shall have been, or shall simultaneously with
     the initial Advance hereunder, be paid in full, and all liens and security
     interests granted in connection therewith shall have been or shall
     simultaneously on the initial Borrowing Date be terminated.

            4.1.11   Evidence satisfactory to the Agent that (i) the issuance of
     Indebtedness by the Company under the Note Purchase Agreement and the
     Senior Notes has been approved by all necessary corporate action of the
     Company's directors, (ii) the Note Purchase Agreement and the issuance of
     the Senior Notes shall close contemporaneously with the initial funding
     under this Agreement, and (iii) the Company shall have received cash
     proceeds from the issuance of the Senior Notes in an aggregate principal
     amount not less than $350,000,000; and the Agent shall have received copies
     of the duly executed Note Purchase Agreement and the Senior Notes in form
     and substance satisfactory to the Agent and its counsel.

            4.1.12   Evidence satisfactory to the Agent that the Company has
     paid to the Agent and the Arrangers the fees agreed to in the fee letter
     dated October 2, 2003, among the Agent, the Arrangers and the Company.

            4.1.13   Such other documents as any Lender or its counsel may have
     reasonably requested, including, without limitation, those documents set
     forth in Exhibit G hereto.

                                       45

<PAGE>

     4.2.   Each Credit Extension. The Lenders shall not (except as otherwise
set forth in Section 2.3.4 with respect to Revolving Loans extended for the
purpose of repaying Swing Line Loans) be required to make any Credit Extension
unless on the applicable Credit Extension Date:

            4.2.1    There exists no Default or Unmatured Default.

            4.2.2    The representations and warranties contained in Article V
     are true and correct as of such Credit Extension Date except to the extent
     any such representation or warranty is stated to relate solely to an
     earlier date, in which case such representation or warranty shall have been
     true and correct on and as of such earlier date.

            4.2.3    All legal matters incident to the making of such Credit
     Extension shall be satisfactory to the Lenders and their counsel.

     Each Borrowing Notice, request for issuance of a Facility LC or Swing Line
Borrowing Notice, as the case may be, or request for Modification of a Facility
LC, with respect to each such Credit Extension shall constitute a representation
and warranty by the applicable Borrower that the conditions contained in
Sections 4.2.1, 4.2.2 and 4.2.3 have been satisfied.

     4.3.   Initial Advance to Each New Subsidiary Borrower. The Lenders shall
not be required to make a Credit Extension hereunder to a new Subsidiary
Borrower added after the Closing Date unless (a) the conditions contained in
Section 4.2 have been satisfied and (b) the Company has furnished or caused to
be furnished to the Agent with sufficient copies for the Lenders:

            4.3.1    The Assumption Letter executed and delivered by such
     Subsidiary Borrower and containing the acknowledgment of the Agent and the
     written consent of the Borrowers, as contemplated by Section 2.25.

            4.3.2    Copies of the articles or certificate of incorporation (or
     the equivalent thereof) of such Subsidiary Borrower, together with all
     amendments thereto, and a certificate of good standing, each certified by
     the appropriate governmental officer in its jurisdiction of organization
     and accompanied by a certification by the Secretary or Assistant Secretary
     of such Subsidiary Borrower that there have been no changes in the matters
     certified by such governmental officer since the date of such governmental
     officer's certification.

            4.3.3    Copies, certified by the Secretary or Assistant Secretary
     (or the equivalent thereof) of such Subsidiary Borrower of its by-laws and
     of its Board of Directors' resolutions and of resolutions or actions of any
     other body authorizing the execution of the Loan Documents to which such
     Subsidiary Borrower is a party.

            4.3.4    An incumbency certificate, executed by the Secretary or
     Assistant Secretary (or the equivalent thereof) of such Subsidiary Borrower
     which shall identify by name and title and bear the signatures of the
     Authorized Officers and any other officers of such Subsidiary Borrower
     authorized to sign the Loan Documents to which it is a party, upon which
     certificate the Agent and the Lenders shall be entitled to rely until
     informed of any change in writing by such Subsidiary Borrower.

                                       46

<PAGE>

            4.3.5    An opinion of counsel to such Subsidiary Borrower,
     substantially in the form of Exhibit E hereto.

                                    ARTICLE V

                         REPRESENTATIONS AND WARRANTIES

     Each Borrower represents and warrants to each Lender, LC Issuer and the
Agent as of each of (i) the Closing Date and (ii) each other date as required by
Section 4.2:

     5.1.   Existence and Standing. Each of the Company and its Subsidiaries is
a corporation, partnership (in the case of Subsidiaries only) or limited
liability company duly and properly incorporated or organized, as the case may
be, validly existing and (to the extent such concept applies to such entity) in
good standing under the laws of its jurisdiction of incorporation or
organization, (ii) has all requisite corporate, partnership or limited liability
company power and authority, as the case may be, to own, operate and encumber
its Property and (iii) is qualified to do business and is in good standing (to
the extent such concept applies to such entity) in all jurisdictions where the
nature of the business conducted by it makes such qualification necessary and
where failure to so qualify would reasonably be expected to have a Material
Adverse Effect.

     5.2.   Authorization and Validity. Each Credit Party has the requisite
corporate, partnership or limited liability company power and authority and
legal right to execute and deliver the Transaction Documents to which it is a
party and to perform its obligations thereunder. The execution and delivery by
each Credit Party of the Transaction Documents to which it is a party and the
performance of its obligations thereunder have been duly authorized by proper
corporate, partnership or limited liability company, as the case may be,
proceedings, and the Transaction Documents to which each Credit Party is a party
constitute legal, valid and binding obligations of such Credit Party enforceable
against such Credit Party in accordance with their terms, except as
enforceability may be limited by (i) bankruptcy, insolvency, fraudulent
conveyances, reorganization or similar laws relating to or affecting the
enforcement of creditors' rights generally; (ii) general equitable principles
(whether considered in a proceeding in equity or at law); and (iii) requirements
of reasonableness, good faith and fair dealing.

     5.3.   No Conflict; Government Consent. Neither the execution and delivery
by any Credit Party of the Transaction Documents to which it is a party, nor the
consummation by such Credit Party of the transactions therein contemplated, nor
compliance by such Credit Party with the provisions thereof will violate (i) any
applicable law, rule, regulation, order, writ, judgment, injunction, decree or
award binding on such Credit Party or (ii) such Credit Party's articles or
certificate of incorporation, partnership agreement, certificate of partnership,
articles or certificate of organization, by-laws, or operating agreement or
other management agreement, as the case may be, or (iii) the provisions of any
indenture, instrument or agreement to which such Credit Party is a party or is
subject, or by which it, or its Property, is bound, or conflict with, or
constitute a default under, or result in, or require, the creation or imposition
of any Lien in, of or on the Property of such Credit Party pursuant to the terms
of, any such indenture, instrument or agreement. No order, consent,
adjudication, approval, license, authorization, or validation of, or filing,
recording or registration with, or exemption by, or other action in respect of
any governmental or public body or authority, or any subdivision thereof, which
has not been

                                       47

<PAGE>

obtained by any Credit Party, is required to be obtained by such Credit Party in
connection with the execution and delivery of the Transaction Documents, the
borrowings under this Agreement, the payment and performance by the Credit
Parties of the Obligations or the legality, validity, binding effect or
enforceability of any of the Transaction Documents.

     5.4.   Financial Statements. The April 26, 2003 consolidated financial
statements of the Company and its Subsidiaries (other than AbilityOne and its
Subsidiaries) and, to the best of the Company's knowledge, the December 31, 2002
consolidated financial statements of AbilityOne and its Subsidiaries, in each
case heretofore delivered to the Agent and the Lenders, were prepared in
accordance with generally accepted accounting principles in effect on the date
such statements were prepared and fairly present the consolidated financial
condition and operations of the Company and its Subsidiaries (other than
AbilityOne and its Subsidiaries) and, to the best of the Company's knowledge,
AbilityOne and its Subsidiaries, as applicable, at such date and the
consolidated results of their operations for the period then ended.

     5.5.   Material Adverse Change. Since April 26, 2003, there has been no
change in the business, Property, condition (financial or otherwise), operations
or results of operations, performance or prospects of the Company and its
Subsidiaries (including for the period commencing on September 12, 2003,
AbilityOne and its Subsidiaries) taken as a whole which could reasonably be
expected to have a Material Adverse Effect. To the best of the Company's
knowledge, since December 31, 2002, there has been no change in the business,
Property, condition (financial or otherwise), operations or results of
operations, performance or prospects of AbilityOne and its Subsidiaries taken as
a whole which could reasonably be expected to have a Material Adverse Effect.

     5.6.   Taxes. The Company and the Subsidiaries have filed all United States
federal tax returns and all other tax returns which are required to be filed and
have paid all taxes due pursuant to said returns or pursuant to any assessment
received by the Company or any Subsidiaries, except in respect of such taxes, if
any, as are being contested in good faith and as to which adequate reserves have
been provided in accordance with Agreement Accounting Principles and as to which
no Lien exists (except as permitted by Section 6.15.1) and as to which the
failure to file such return or pay such taxes could not reasonably be expected
to have a Material Adverse Effect. The United States income tax returns of the
Company and the Subsidiaries (other than those that became Subsidiaries after
April 25, 1998) have been audited by the Internal Revenue Service through the
fiscal year ended April 25, 1998. No liens have been filed and no claims are
being asserted with respect to such taxes. The charges, accruals and reserves on
the books of the Company and the Subsidiaries in respect of any taxes or other
governmental charges are adequate.

     5.7.   Litigation and Contingent Obligations. There is no litigation,
arbitration, governmental investigation, proceeding or inquiry pending or, to
the knowledge of any of their officers, threatened against or affecting the
Company or any Subsidiaries which could reasonably be expected to have a
Material Adverse Effect or which seeks to prevent, enjoin or delay the making of
any Loans. Other than any liability incident to any litigation, arbitration or
proceeding which could not reasonably be expected to have a Material Adverse
Effect, the Company and its Subsidiaries has no material contingent obligations
required to be reflected on

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<PAGE>

the Company's consolidated balance sheet in accordance with generally accepted
accounting principles and not provided for or disclosed in the financial
statements referred to in Section 5.4.

     5.8.   Subsidiaries. Schedule 5.8 contains an accurate list of all
Subsidiaries of the Company as of the Closing Date, setting forth their
respective jurisdictions of organization and the percentage of their respective
capital stock or other ownership interests owned by the Company or other
Subsidiaries. All of the issued and outstanding shares of capital stock or other
ownership interests of such Subsidiaries have been (to the extent such concepts
are relevant with respect to such ownership interests) duly authorized and
issued and are fully paid and non-assessable.

     5.9.   ERISA. The Unfunded Liabilities of all Single Employer Plans do not
in the aggregate exceed $10,000,000. Neither the Company nor any other member of
the Controlled Group has incurred, or is reasonably expected to incur, pursuant
to Section 4201 of ERISA, any withdrawal liability to Multiemployer Plans. Each
Plan complies in all material respects with all applicable requirements of law
and regulations. No Reportable Event has occurred with respect to any Plan.
Neither the Company nor any other member of the Controlled Group has withdrawn
from any Multiemployer Plan within the meaning of Title IV of ERISA or initiated
steps to do so, and, to the knowledge of the Company, no steps have been taken
to reorganize or terminate, within the meaning of Title IV of ERISA, any
Multiemployer Plan.

     5.10.  Accuracy of Information. The information, exhibits or reports
furnished by the Company or any Subsidiary to the Agent or to any Lender in
connection with the negotiation of, or compliance with, the Transaction
Documents do not contain any material misstatement of fact or omit to state a
material fact or any fact necessary to make the statements contained therein, in
light of the circumstances under which they were made, not misleading. The
projected and pro-forma financial information furnished by or on behalf of any
Credit Party to the Agent or any Lender in connection with the negotiation of,
or compliance with, the Transaction Documents, were prepared in good faith based
upon assumptions believed to be reasonable at the time.

     5.11.  Regulation U. Neither the Company nor any Subsidiary is engaged
principally, or as one of its important activities, in the business of extending
credit for the purpose, whether immediate, incidental or ultimate of buying or
carrying margin stock (as defined in Regulation U), and after applying the
proceeds of each Credit Extension, margin stock (as defined in Regulation U)
constitutes less than 25% of the value of those assets of the Company and the
Subsidiaries which are subject to any limitation on sale, pledge, or any other
restriction hereunder.

     5.12.  Material Agreements. Neither the Company nor any Subsidiary is a
party to any agreement or instrument or subject to any charter or other
corporate restriction which could reasonably be expected to have a Material
Adverse Effect. Neither the Company nor any Subsidiary is in default in the
performance, observance or fulfillment of any of the obligations, covenants or
conditions contained in (i) any agreement or instrument to which it is a party,
which default could reasonably be expected to have a Material Adverse Effect or
(ii) any agreement or instrument evidencing or governing Indebtedness.

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<PAGE>

     5.13.  Compliance With Laws. The Company and the Subsidiaries have complied
in all material respects with all applicable statutes, rules, regulations,
orders and restrictions of any domestic or foreign government or any
instrumentality or agency thereof having jurisdiction over the conduct of their
respective businesses or the ownership of their respective Property except for
any failure to comply with any of the foregoing which could not reasonably be
expected to have a Material Adverse Effect.

     5.14.  Ownership of Properties. The Company and the Subsidiaries have good
title, free of all Liens other than those permitted by Section 6.15, to all of
the assets reflected in the Company's most recent consolidated financial
statements provided to the Agent, as owned by the Company and the Subsidiaries
except (i) assets sold or otherwise transferred as permitted under Section 6.12
and (ii) to the extent the failure to hold such title could not reasonably be
expected to have a Material Adverse Effect.

     5.15.  Plan Assets; Prohibited Transactions. None of the Credit Parties is
an entity deemed to hold "plan assets" within the meaning of 29 C.F.R. Section
2510.3-101 of an employee benefit plan (as defined in Section 3(3) of ERISA)
which is subject to Title I of ERISA or any plan (within the meaning of Section
4975 of the Code), and assuming the accuracy of the representations and
warranties made in Section 9.12 and in any assignment made pursuant to Section
12.3.3, neither the execution of this Agreement nor the making of Loans
hereunder gives rise to a prohibited transaction within the meaning of Section
406 of ERISA or Section 4975 of the Code.

     5.16.  Environmental Matters. In the ordinary course of its business, the
officers of the Company and the Subsidiaries consider the effect of
Environmental Laws on the business of the Company and the Subsidiaries, in the
course of which they identify and evaluate potential risks and liabilities
accruing to the Company or any Subsidiary due to Environmental Laws. On the
basis of this consideration, the Company has concluded that Environmental Laws
cannot reasonably be expected to have a Material Adverse Effect. Neither the
Company nor any Subsidiary has received any notice to the effect that its
operations are not in material compliance with any of the requirements of
applicable Environmental Laws or are the subject of any federal or state
investigation evaluating whether any remedial action is needed to respond to a
release of any toxic or hazardous waste or substance into the environment, which
non-compliance or remedial action could reasonably be expected to have a
Material Adverse Effect.

     5.17.  Investment Company Act. Neither the Company nor any Subsidiary is an
"investment company" or a company "controlled" by an "investment company",
within the meaning of the Investment Company Act of 1940, as amended.

     5.18.  Public Utility Holding Company Act. Neither the Company nor any
Subsidiary is a "holding company", or a "subsidiary company" of a "holding
company", or an "affiliate" of a "holding company" or of a "subsidiary company"
of a "holding company", as such terms are defined in the Public Utility Holding
Company Act of 1935, as amended.

     5.19.  Insurance. The Company maintains, and has caused each Subsidiary to
maintain, with financially sound and reputable insurance companies insurance on
all their Property in such

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<PAGE>

amounts, subject to such deductibles and self-insurance retentions and covering
such properties and properties and risks as is consistent with sound business
practice.

     5.20.  Solvency. After giving effect to (i) the Credit Extensions to be
made on the Closing Date or such other date as Credit Extensions requested
hereunder are made, (ii) the other transactions contemplated by this Agreement
and the other Transaction Documents, and (iii) the payment and accrual of all
transaction costs with respect to the foregoing, the Company and its
Subsidiaries taken as a whole are Solvent.

     5.21.  No Default or Unmatured Default. No Default or Unmatured Default has
occurred and is continuing.

     5.22.  Reportable Transaction. No Borrower intends to treat the Advances
and related transactions as being a "reportable transaction" (within the meaning
of the Treasury Regulation Section 1.6011-4). In the event any Borrower
determines to take any action inconsistent with such intention, it will promptly
notify the Agent thereof. Each Borrower acknowledges that one or more of the
Lenders may treat its Advances as part of a transaction that is subject to
Treasury Regulation Section 1.6011-4 or Section 301.6112-1, and the Agent and
such Lender or Lenders, as applicable, may file such IRS forms or maintain such
lists and other records as they may determine is required by such Treasury
Regulations.

     5.23.  Post-Retirement Benefits. The present value of the expected cost of
post-retirement medical and insurance benefits payable by the Company and its
Subsidiaries to its employees and former employees, as estimated by the Company
in accordance with procedures and assumptions deemed reasonable by the Required
Lenders is zero.

     5.24.  AbilityOne Acquisition. (i) No material breach, default or waiver of
any term or provision of the AbilityOne Acquisition Agreement by the Company or
any of its Subsidiaries, which are parties thereto, or, to the best of the
Company's knowledge, the other parties thereto, has occurred (except for such
breaches, defaults and waivers, if any, consented to in writing by the Agent);
and (ii) the Company owns, directly or indirectly, not less than one hundred
percent of the capital stock of AbilityOne.

                                   ARTICLE VI

                                    COVENANTS

     During the term of this Agreement, unless the Required Lenders shall
otherwise consent in writing:

     6.1.   Financial Reporting. The Company will maintain, for itself and each
Subsidiary, a system of accounting established and administered in accordance
with generally accepted accounting principles, and furnish to the Lenders:

            6.1.1    Within 90 days after the close of each of the Company's
     fiscal years, commencing with the fiscal year ending April 24, 2004,
     financial statements prepared in accordance with Agreement Accounting
     Principles on a consolidated basis, for itself and its Subsidiaries,
     including balance sheets as of the end of such period, statements of

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<PAGE>

     income and statements of cash flows, accompanied by (a) an audit report,
     unqualified as to scope, of a nationally recognized firm of independent
     public accountants or other independent public accountants reasonably
     acceptable to the Required Lenders; (b) any management letter prepared by
     said accountants, and (c) a certificate of said accountants that, in the
     course of their examination necessary for their certification of the
     foregoing, they have obtained no knowledge of any Default or Unmatured
     Default, or if, in the opinion of such accountants, any Default or
     Unmatured Default shall exist, stating the nature and status thereof.

            6.1.2    Within 45 days after the close of the first three quarterly
     periods of each of the Company's fiscal years, commencing with the fiscal
     quarter ending October 25, 2003, for the Company and its Subsidiaries,
     consolidated unaudited balance sheets as at the close of each such period
     and consolidated statements of income and a statement of cash flows for the
     period from the beginning of such fiscal year to the end of such quarter,
     all certified as to fairness of presentation, compliance with Agreement
     Accounting Principles and consistency by its chief financial officer or
     treasurer.

            6.1.3    Together with the financial statements required under
     Sections 6.1.1 and 6.1.2, a compliance certificate in substantially the
     form of Exhibit B signed by its chief financial officer or treasurer
     showing the calculations necessary to determine compliance with this
     Agreement, which certificate shall also state that no Default or Unmatured
     Default exists, or if any Default or Unmatured Default exists, stating the
     nature and status thereof, and a certificate executed and delivered by the
     chief executive officer or chief financial officer stating that the Company
     and each of its respective principal officers are in compliance with all
     requirements of Section 302 and Section 906 of the Sarbanes-Oxley Act of
     2002 and all rules and regulations related thereto.

            6.1.4    Within 120 days after the close of each of the Company's
     fiscal years, a copy of the plan and forecast (including a projected
     balance sheet, income statements and funds flow statements, and any
     narrative prepared with respect thereto) of the Company and its
     Subsidiaries for the upcoming fiscal year prepared in such detail as shall
     be reasonably satisfactory to the Agent.

            6.1.5    Within 270 days after the close of each fiscal year of the
     Company, if applicable, a copy of the actuarial report showing the Unfunded
     Liabilities of each Single Employer Plan as of the valuation date occurring
     in such fiscal year, certified by an actuary enrolled under ERISA.

            6.1.6    As soon as possible and in any event within 10 days after
     any Borrower knows that any Reportable Event has occurred with respect to
     any Plan, a statement, signed by the chief financial officer or treasurer
     of the Company, describing said Reportable Event and the action which the
     Company proposes to take with respect thereto.

            6.1.7    As soon as possible and in any event within 10 days after
     receipt by the Company or any Subsidiary, a copy of (a) any notice or claim
     to the effect that the Company or any Subsidiary is or may be liable to any
     Person as a result of the release by

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<PAGE>

     the Company, any Subsidiary, or any other Person of any toxic or hazardous
     waste or substance into the environment, and (b) any notice alleging any
     violation of any Environmental Law by the Company or any Subsidiary, which,
     in either case, could reasonably be expected to have a Material Adverse
     Effect.

            6.1.8    Promptly upon the furnishing thereof to the shareholders of
     the Company, copies of all financial statements, reports and proxy
     statements so furnished.

            6.1.9    Promptly upon the filing thereof, copies of all
     registration statements and annual, quarterly, monthly or other regular
     reports which the Company or any Subsidiary files with the SEC, including,
     without limitation, all certifications and other filings required by
     Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002 and all rules
     and regulations related thereto.

            6.1.10   Prior to the execution thereof, draft copies of all
     material amendments to the Note Purchase Agreement and the Senior Notes.

            6.1.11   Such other information (including non-financial
     information) as the Agent or any Lender may from time to time reasonably
     request.

     6.2.   Use of Proceeds. Each Borrower will use (i) the proceeds of the Term
Loans solely for repayment of a portion of the Indebtedness outstanding under
the Existing Credit Agreement, and (ii) the proceeds of the Revolving Loans for
general corporate purposes including, without limitation, for working capital,
Permitted Acquisitions, repayment of Indebtedness outstanding under the Existing
Credit Agreement and to pay fees and expenses incurred in connection with this
Agreement). The Borrowers shall use the proceeds of Credit Extensions in
compliance with all applicable legal and regulatory requirements and any such
use shall not result in a violation of any such requirements, including, without
limitation, Regulation U and X, the Securities Act of 1933, as amended, and the
Securities Exchange Act of 1934, as amended, and the regulations promulgated
thereunder.

     6.3.   Notice of Default. Within five (5) Business Days after an Authorized
Officer of any Borrower becomes aware thereof, such Borrower will, and the
Company will cause each other Subsidiary to, give notice in writing to the
Lenders of the occurrence of (i) any Default or Unmatured Default, (ii) the
occurrence of any Off-Balance Sheet Trigger Event or any material default under
or with respect to any Material Indebtedness or any material service agreement
to which the Company or any Subsidiary is a party (together with copies of all
default notices, if any, pertaining thereto) and (iii) any other development,
financial or otherwise, which could reasonably be expected to have a Material
Adverse Effect.

     6.4.   Conduct of Business. Each Borrower will, and the Company will cause
each other Subsidiary to, carry on and conduct its business in substantially the
same manner and in substantially the same fields of enterprise as conducted by
the Company or its Subsidiaries as of the Closing Date, and do all things
necessary to remain duly incorporated or organized, validly existing and (to the
extent such concept applies to such entity) in good standing as a domestic
corporation, partnership or limited liability company in its jurisdiction of
incorporation or organization, as the case may be, as in effect on the Closing
Date, and, except to the extent

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<PAGE>

failure to do so could not reasonably be expected to have a Material Adverse
Effect, maintain all requisite authority to conduct its business in each
jurisdiction in which its business is conducted.

     6.5.   Taxes. Each Borrower will, and the Company will cause each other
Subsidiary to, timely file complete and correct United States federal and
applicable foreign, state and local tax returns required by law and pay when due
all taxes, assessments and governmental charges and levies upon it or its
income, profits or Property, except (i) those which are being contested in good
faith by appropriate proceedings and with respect to which adequate reserves
have been set aside in accordance with Agreement Accounting Principles and (ii)
those taxes, assessments, charges and levies which by reason of the amount
involved or the remedies available to the applicable taxing authority could not
reasonably be expected to have a Material Adverse Effect.

     6.6.   Insurance. Each Borrower will, and the Company will cause each other
Subsidiary to, maintain with financially sound and reputable insurance companies
insurance on all their Property in such amounts, subject to such deductibles and
self-insurance retentions, and covering such properties and risks as is
consistent with sound business practice, and the Company will furnish to any
Lender upon request full information as to the insurance carried.

     6.7.   Compliance with Laws. Each Borrower will, and the Company will cause
each other Subsidiary to, comply with all laws, rules, regulations, orders,
writs, judgments, injunctions, decrees or awards to which it may be subject
including, without limitation, all Environmental Laws and Section 302 and
Section 906 of the Sarbanes-Oxley Act of 2002, except where the failure to do
so, individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.

     6.8.   Maintenance of Properties. Subject to Section 6.12, each Borrower
will, and the Company will cause each other Subsidiary to, do all things
necessary to maintain, preserve, protect and keep its Property used in the
operation of its business in good repair, working order and condition (ordinary
wear and tear excepted), and make all necessary and proper repairs, renewals and
replacements so that its business carried on in connection therewith may be
properly conducted at all times, except where the failure to do so, individually
or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect.

     6.9.   Inspection; Keeping of Books and Records. Each Borrower will, and
the Company will cause each other Subsidiary to, permit the Agent and the
Lenders, by their respective representatives and agents, to inspect any of the
Property, books and financial records of the Company and each Subsidiary, to
examine and make copies of the books of accounts and other financial records of
the Company and each Subsidiary, and to discuss the affairs, finances and
accounts of the Company and each Subsidiary with, and to be advised as to the
same by, their respective officers at such reasonable times and intervals as the
Agent or any Lender may designate. Each Borrower shall keep and maintain, and
the Company shall cause each of the other Subsidiaries to keep and maintain, in
all material respects, complete, accurate and proper books of record and account
in which entries in conformity with Agreement Accounting Principles shall be
made of all dealings and transactions in relation to their respective businesses
and activities. If a Default has occurred and is continuing, the Company, upon
the Agent's request, shall turn over copies of any such records to the Agent or
its representatives.

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<PAGE>

     6.10.  Dividends. No Borrower will, nor will the Company permit any other
Subsidiary to, declare or pay any dividend or make any distribution on its
capital stock (other than dividends payable in its own capital stock) or redeem,
repurchase or otherwise acquire or retire any of its capital stock at any time
outstanding, except that (i) any Subsidiary of the Company may declare and pay
dividends or make distributions to any Borrower or to a Guarantor and (ii) the
Company may declare and pay dividends on its capital stock, and may repurchase
shares of its capital stock pursuant to the share repurchase program described
in note 11 to its audited financial statements for the year ended April 26,
2003, provided that no Default or Unmatured Default shall exist before or after
giving effect to such dividends or be created as a result thereof.

     6.11.  Merger. No Borrower will, nor will the Company permit any other
Subsidiary to, merge or consolidate with or into any other Person, except that:

            6.11.1   (x) A Subsidiary Borrower may merge into (i) the Company,
     provided the Company shall be the continuing or surviving corporation, or
     (ii) another Subsidiary Borrower or any other Person that becomes a
     Subsidiary Borrower promptly upon the completion of the applicable merger
     or consolidation, and (y) a Guarantor may merge into (i) any Borrower,
     provided such Borrower shall be the continuing or surviving corporation, or
     (ii) another Guarantor or any other Person that becomes a Guarantor
     promptly upon the completion of the applicable merger or consolidation.

            6.11.2   A Subsidiary that is not a Guarantor or Subsidiary Borrower
     and not required to be a Guarantor may merge or consolidate with or into
     the Company or any Wholly-Owned Subsidiary.

            6.11.3   Any Subsidiary of the Company may consummate any merger or
     consolidation in connection with any Permitted Acquisition.

     6.12.  Sale of Assets. No Borrower will, nor will the Company permit any
other Subsidiary to, lease, sell, transfer or otherwise dispose of its Property
to any other Person, except:

            6.12.1   Sales of inventory in the ordinary course of business.

            6.12.2   A disposition of assets (i) by the Company or any
     Subsidiary to any Credit Party, (ii) by a Subsidiary that is not a Credit
     Party and not required to be a Guarantor to any other Subsidiary and (iii)
     subject to Section 6.24, by any Credit Party to any Foreign Subsidiary.

            6.12.3   A disposition of obsolete property or property no longer
     used in the business of the Company or any Subsidiary.

            6.12.4   So long as no Default or Unmatured Default has occurred, a
     disposition of assets for an aggregate purchase price of up to $350,000,000
     outstanding at any time pursuant to, and in accordance with, the
     Receivables Purchase Facilities.

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<PAGE>

            6.12.5   The license or sublicense of software, trademarks, and
     other intellectual property in the ordinary course of business which do not
     materially interfere with the business of the Company or any Subsidiary.

            6.12.6   Consignment arrangements (as consignor or consignee) or
     similar arrangements for the sale of goods in the ordinary course of
     business and consistent with the past practices of the Company and the
     Subsidiaries.

            6.12.7   So long as no Default or Unmatured Default shall have
     occurred and is continuing or would result therefrom, leases, sales or
     other dispositions of its Property that (i) are for consideration
     consisting at least seventy-five percent (75%) of cash, (ii) are for not
     less than fair market value, and (iii) together with all other Property of
     the Company and the Subsidiaries previously leased, sold or disposed of
     (other than dispositions otherwise permitted by this Section 6.12) as
     permitted by this Section 6.12.7 during the twelve-month period ending with
     the month in which any such lease, sale or other disposition occurs, do not
     constitute in the aggregate a Substantial Portion of the Property of the
     Company and its Subsidiaries.

     6.13.  Investments and Acquisitions. No Borrower will, nor will the Company
permit any other Subsidiary to, make or suffer to exist any Investments
(including without limitation, loans and advances to, and other Investments in,
Subsidiaries), or to create any Subsidiary or to become or remain a partner in
any partnership or joint venture, or to make any Acquisition of any Person,
except:

            6.13.1   Subject to Section 6.24, cash and Cash Equivalent
     Investments and other Investments that comply with the Company's investment
     policy as in effect on the Closing Date, a copy of which the Company has
     provided to the Agent.

            6.13.2   Existing Investments in Subsidiaries and other Investments
     in existence on the Closing Date and described in Schedule 6.13 and any
     renewal or extension of any such Investments that does not increase the
     amount of the Investment being renewed or extended as determined as of such
     date of renewal or extension.

            6.13.3   Investments in trade receivables or received in connection
     with the bankruptcy or reorganization of suppliers and customers and in
     settlement of delinquent obligations of, and other disputes with, customers
     and suppliers arising in the ordinary course of business.

            6.13.4   Investments consisting of intercompany loans permitted
     under Section 6.14.6.

            6.13.5   All Acquisitions meeting the following requirements or
     otherwise approved by the Required Lenders (each such Acquisition
     constituting a "Permitted Acquisition"):

     (i)    as of the date of the consummation of such Acquisition, no Default
            or Unmatured Default shall have occurred and be continuing or would
            result from such

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<PAGE>

            Acquisition, and the representation and warranty contained in
            Section 5.11 shall be true both before and after giving effect to
            such Acquisition;

     (ii)   such Acquisition is consummated on a non-hostile basis pursuant to a
            negotiated acquisition agreement approved by the board of directors
            or other applicable governing body of the seller or entity to be
            acquired, and no material challenge to such Acquisition (excluding
            the exercise of appraisal rights) shall be pending or threatened in
            writing by any shareholder or director of the seller or entity to be
            acquired;

     (iii)  the business to be acquired in such Acquisition is similar or
            related to one or more of the lines of business in which the Company
            and the Subsidiaries are engaged on the Closing Date;

     (iv)   as of the date of the consummation of such Acquisition, all material
            governmental and corporate approvals required in connection
            therewith shall have been obtained;

     (v)    the Purchase Price for each such Acquisition together with the
            Purchase Price of all other Permitted Acquisitions shall not exceed
            an amount equal to $100,000,000 in any twelve-month period
            (excluding from the calculation thereof during the twelve-month
            period immediately following the AbilityOne Acquisition, the
            Purchase Price of the AbilityOne Acquisition);

     (vi)   with respect to each Permitted Acquisition with respect to which the
            Purchase Price shall be greater than $30,000,000, not less than
            fifteen (15) days prior to the consummation of such Permitted
            Acquisition, the Company shall have delivered to the Agent a pro
            forma consolidated balance sheet, income statement and cash flow
            statement of the Company and the Subsidiaries (the "Acquisition Pro
            Forma"), based on the Company's most recent financial statements
            delivered pursuant to Section 6.1.1 and using historical financial
            statements for the acquired entity provided by the seller(s) or
            which shall be complete and shall fairly present, in all material
            respects, the financial condition and results of operations and cash
            flows of the Company and its Subsidiaries in accordance with
            Agreement Accounting Principles, but taking into account such
            Permitted Acquisition and the repayment of any Indebtedness in
            connection with such Permitted Acquisition, and such Acquisition Pro
            Forma shall reflect that, on a pro forma basis, the Company would
            have been in compliance with the financial covenants set forth in
            Sections 6.20, 6.21 and 6.22 for the four fiscal quarter period
            reflected in the compliance certificate most recently delivered to
            the Agent pursuant to Section 6.1.3 prior to the consummation of
            such Permitted Acquisition (giving effect to such Permitted
            Acquisition as if made on the first day of such period); and

     (vii)  prior to (or, with respect to clause (A) below, concurrently with)
            the consummation of each such Permitted Acquisition, the Company
            shall deliver to the Agent a documentation, information and
            certification package in form and substance acceptable to the Agent,
            including, without limitation;

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<PAGE>

            (A)  to the extent required under Section 6.23, a supplement to the
                 Guaranty if the Permitted Acquisition is an Acquisition of
                 equities and the target company will not be merged with the
                 Company or any other Borrower;

            (B)  the financial statements of the target entity together with any
                 pro forma financial statements, projections, forecasts and
                 budgets prepared by the Company in connection therewith;

            (C)  a copy of the acquisition agreement for such Acquisition,
                 together with drafts of the material schedules thereto;

            (D)  a copy of all documents, instruments and agreements with
                 respect to any Indebtedness to be incurred or assumed in
                 connection with such Acquisition; and

            (E)  such other documents or information as shall be reasonably
                 requested by the Agent or any Lender.

            6.13.6   Investments constituting promissory notes and other
     non-cash consideration received in connection with any transfer of assets
     permitted under Section 6.12.7.

            6.13.7   Customer advances in the ordinary course of business.

            6.13.8   Extensions of customer or trade credit in the ordinary
     course of business consistent with the Company's and the Subsidiaries' past
     practices.

            6.13.9   Investments constituting Rate Management Transactions
     permitted under Section 6.17.

            6.13.10  Subject to Section 6.24, the creation or formation of new
     Subsidiaries (as opposed to the Acquisition of new Subsidiaries), so long
     as all applicable requirements under Section 6.23 shall have been, or
     concurrently therewith are, satisfied.

            6.13.11  Investments constituting expenditures for any purchase or
     other acquisition of any asset which would be classified as a fixed or
     capital asset on a consolidated balance sheet of the Company and its
     Subsidiaries prepared in accordance with Agreement Accounting Principles to
     the extent otherwise permitted under this Agreement.

            6.13.12  Investments by (i) the Company and its Subsidiaries in any
     Credit Party, (ii) any Subsidiary which is not a Credit Party and is not
     required to be a Guarantor in any other Subsidiary which is not a Credit
     Party and is not required to be a Guarantor and (iii) subject to Section
     6.24, any Credit Party in any Foreign Subsidiary.

            6.13.13  Deposits made in the ordinary course of business and
     referred to in Sections 6.15.4, 6.15.6 and 6.15.7.

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            6.13.14  (a) cash Investments constituting the initial
     capitalization of an SPV in connection with the consummation of any
     Receivables Purchase Facility permitted under this Agreement in an
     aggregate amount (calculated based on aggregate of the initial cash
     capitalization amount of each such SPV) not to exceed $10,000,000, and (b)
     other Investments in connection with any Receivables Purchase Facility
     permitted under this Agreement (including intercompany Indebtedness
     permitted under Section 6.14.4(b)).

            6.13.15  Additional Investments in an amount not to exceed
     $10,000,000 at any one time outstanding.

     6.14.  Indebtedness. No Borrower will, nor will the Company permit any
other Subsidiary to, create, incur or suffer to exist any Indebtedness, except:

            6.14.1   The Obligations.

            6.14.2   Indebtedness existing on the Closing Date and described in
     Schedule 6.14, and any replacement, renewal, refinancing or extension of
     any such Indebtedness that (i) does not exceed the aggregate principal
     amount (plus accrued interest and any applicable premium and associated
     fees and expenses) of the Indebtedness being replaced, renewed, refinanced
     or extended, (ii) does not have a Weighted Average Life to Maturity at the
     time of such replacement, renewal, refinancing or extension that is less
     than the Weighted Average Life to Maturity of the Indebtedness being
     replaced, renewed, refinanced or extended and (iii) does not rank at the
     time of such replacement, renewal, refinancing or extension senior to the
     Indebtedness being replaced, renewed, refinanced or extended.

            6.14.3   Indebtedness arising under Rate Management Transactions
     permitted under Section 6.17;

            6.14.4   (a) Amounts owing under the Receivables Purchase
     Facilities, the principal amount of which shall not exceed $350,000,000 in
     the aggregate at any time and (b) subordinated intercompany Indebtedness
     owing to the Company or any Subsidiary of the Company by any SPV in
     connection with a Receivables Purchase Facility permitted hereunder.

            6.14.5   Secured or unsecured purchase money Indebtedness (including
     Capitalized Leases) incurred by the Company or any Subsidiary after the
     Closing Date to finance the acquisition of assets used in its business, if
     (1) at the time of such incurrence, no Default or Unmatured Default has
     occurred and is continuing or would result from such incurrence, (2) such
     Indebtedness does not exceed the lower of the fair market value or the cost
     of the applicable fixed assets on the date acquired, (3) such Indebtedness
     does not exceed $10,000,000 in the aggregate outstanding at any time, and
     (4) any Lien securing such Indebtedness is permitted under Section 6.15
     (such Indebtedness being referred to herein as "Permitted Purchase Money
     Indebtedness").

            6.14.6   Indebtedness arising from intercompany loans and advances
     made by (i) the Company or any Subsidiary to any Credit Party, (ii) any
     Subsidiary that is not a Credit Party to any other Subsidiary that is not a
     Credit Party or (iii) subject to Section

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     6.24, any Credit Party to any Foreign Subsidiary; provided that all such
     Indebtedness shall be expressly subordinated to the Obligations.

            6.14.7   Indebtedness incurred or assumed by the Company or any
     Subsidiary in connection with a Permitted Acquisition but not created in
     contemplation of such event.

            6.14.8   Indebtedness constituting Contingent Obligations otherwise
     permitted by Section 6.19.

            6.14.9   Indebtedness under (i) performance bonds and surety bonds
     and (ii) bank overdrafts outstanding for not more than two (2) Business
     Days, in each case incurred in the ordinary course of business.

            6.14.10  To the extent the same constitutes Indebtedness,
     obligations in respect of earn-out arrangements permitted pursuant to a
     Permitted Acquisition.

            6.14.11  Unsecured Indebtedness arising under the Note Purchase
     Agreement and the Senior Notes, the outstanding principal amount of which
     shall not exceed $350,000,000 in the aggregate at any time.

            6.14.12  Additional Indebtedness in an aggregate principal amount in
     Dollars not to exceed $10,000,000 at any time.

     6.15.  Liens. No Borrower will, nor will the Company permit any other
Subsidiary to, create, incur, or suffer to exist any Lien in, of or on the
Property of the Company or any Subsidiary, except:

            6.15.1   Liens, if any, securing Obligations.

            6.15.2   Liens for taxes, assessments or governmental charges or
     levies on its Property if the same shall not at the time be delinquent or
     thereafter can be paid without penalty, or are being contested in good
     faith and by appropriate proceedings and for which adequate reserves in
     accordance with Agreement Accounting Principles shall have been set aside
     on its books.

            6.15.3   Liens imposed by law, such as landlords', wage earners',
     carriers', warehousemen's and mechanics' liens and other similar liens
     arising in the ordinary course of business which secure payment of
     obligations not more than 45 days past due or which are being contested in
     good faith by appropriate proceedings and for which adequate reserves in
     accordance with Agreement Accounting Principles shall have been set aside
     on its books.

            6.15.4   Liens arising out of pledges or deposits under worker's
     compensation laws, unemployment insurance, old age pensions, or other
     social security or retirement benefits, or similar legislation.

            6.15.5   Liens existing on the Closing Date and described in
     Schedule 6.15.

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            6.15.6   Deposits securing liability to insurance carriers under
     insurance or self-insurance arrangements.

            6.15.7   Deposits to secure the performance of bids, trade contracts
     (other than for borrowed money), leases, statutory obligations, surety and
     appeal bonds, performance bonds and other obligations of a like nature
     incurred in the ordinary course of business.

            6.15.8   Easements, reservations, rights-of-way, restrictions,
     survey exceptions and other similar encumbrances as to real property of the
     Company and the Subsidiaries which customarily exist on properties of
     corporations engaged in similar activities and similarly situated and which
     are not material in amount and that do not materially interfere with the
     conduct of the business of the Company or such Subsidiary conducted at the
     property subject thereto.

            6.15.9   Liens arising by reason of any judgment, decree or order of
     any court or other governmental authority, but only to the extent and for
     an amount and for a period not resulting in a Default under Section 7.8.

            6.15.10  Liens on receivables and related assets (including, without
     limitation, (i) any interest in the equipment or inventory (including
     returned or repossessed goods), if any, the sale, financing or lease of
     which gave rise to the receivables, together with insurance related
     thereto, (ii) all security interests purporting to secure payment of the
     receivables, (iii) all guaranties, insurance, letters of credit or other
     agreements supporting or securing payment of the receivables, (iv) all
     contracts associated with the receivables, (v) all collection accounts and
     lockbox accounts into which receivables payments are made, (vi) all records
     relating to the receivables, and (vii) all proceeds of the foregoing)
     arising in connection with a Receivables Purchase Facility permitted under
     Section 6.14.4.

            6.15.11  Liens existing on any specific fixed asset of any
     Subsidiary of the Company at the time such Subsidiary becomes a Subsidiary
     and not created in contemplation of such event.

            6.15.12  Liens on any specific fixed asset securing Indebtedness
     incurred or assumed for the purpose of financing or refinancing all or any
     part of the cost of acquiring or constructing such asset; provided that
     such Lien attaches to such asset concurrently with or within six (6) months
     after the acquisition or completion or construction thereof.

            6.15.13  Liens existing on any specific fixed asset of any
     Subsidiary of the Company at the time such Subsidiary is merged or
     consolidated with or into the Company or any Subsidiary and not created in
     contemplation of such event.

            6.15.14  Liens existing on any specific fixed asset prior to the
     acquisition thereof by the Company or any Subsidiary and not created in
     contemplation thereof; provided that such Liens do not encumber any other
     property or assets, other than improvements thereon and proceeds thereof.

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            6.15.15  Liens arising out of the refinancing, extension, renewal or
     refunding of any Indebtedness secured by any Lien permitted under Sections
     6.15.5 and 6.15.11 through 6.15.14; provided that (i) such Indebtedness is
     not secured by any additional assets, other than improvements thereon and
     proceeds thereof, and (ii) the amount of such Indebtedness secured by any
     such Lien is not increased.

            6.15.16  Liens securing Permitted Purchase Money Indebtedness;
     provided that such Liens shall not apply to any property of the Company or
     any Subsidiary other than that purchased with the proceeds of such
     Permitted Purchase Money Indebtedness, other than improvements thereon and
     proceeds thereof.

            6.15.17  Liens in respect of Capitalized Lease Obligations to the
     extent permitted hereunder and Liens arising under any equipment, furniture
     or fixtures leases or Property consignments to the Company or any
     Subsidiary otherwise permitted under the Loan Documents.

            6.15.18  Licenses, leases or subleases granted to others in the
     ordinary course of business consistent with the Company's and the
     Subsidiaries' past practices that do not materially interfere with the
     conduct of the business of the Company and the Subsidiaries taken as a
     whole.

            6.15.19  Statutory and contractual landlords' Liens under leases to
     which the Company or any Subsidiary is a party.

            6.15.20  Liens in favor of a banking institution arising as a matter
     of applicable law encumbering deposits (including the right of set-off)
     held by such banking institutions incurred in the ordinary course of
     business and which are within the general parameters customary in the
     banking industry.

            6.15.21  Liens in favor of customs and revenue authorities arising
     as a matter of applicable law to secure the payment of customs' duties in
     connection with the importation of goods.

            6.15.22  Any interest or title of a lessor, sublessor, licensee or
     licensor under any lease or license agreement permitted by this Agreement.

            6.15.23  Liens not otherwise permitted under this Section 6.15 to
     the extent attaching to Properties and assets with an aggregate fair market
     value not in excess of, and securing liabilities not in excess of,
     $10,000,000, in the aggregate at any one time outstanding.

     6.16.  Affiliates. No Borrower will enter into, directly or indirectly, nor
will the Company permit any other Subsidiary to enter into, directly or
indirectly, any transaction (including, without limitation, the purchase or sale
of any Property or service) with, or make any payment or transfer to, any
Affiliate (other than the Borrowers and the Guarantors) except (a) in the
ordinary course of business and pursuant to the reasonable requirements of such
Borrower's or such Subsidiary's business and upon fair and reasonable terms no
less favorable to such Borrower or such Subsidiary than such Borrower or such
Subsidiary would obtain in a

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comparable arm's-length transaction and (b) in connection with any Receivables
Purchase Facility permitted under Section 6.14.4.

     6.17.  Financial Contracts. No Borrower will, nor will the Company permit
any other Subsidiary to, enter into or remain liable upon any Rate Management
Transactions except for those entered into (i) by the Company and its
Subsidiaries in the ordinary course of business for bona fide hedging purposes
and not for speculative purposes and (ii) by any SPV in connection with a
Receivables Purchase Facility permitted hereunder.

     6.18.  Subsidiary Covenants. No Borrower will, and the Company will not
permit any other Subsidiary (other than any SPV) to, create or otherwise cause
to become effective any consensual encumbrance or restriction of any kind on the
ability of any Subsidiary (other than any SPV) (i) to pay dividends or make any
other distribution on its stock, (ii) to pay any Indebtedness or other
obligation owed to the Company or any Subsidiary, (iii) to make loans or
advances or other Investments in the Company or any Subsidiary, or (iv) to sell,
transfer or otherwise convey any of its property to the Company or any
Subsidiary, except for such encumbrances or restrictions existing under or by
reason of (a) this Agreement, the other Loan Documents, the Note Purchase
Agreement and the Receivables Purchase Documents, (b) customary provisions
restricting subletting or assignment of any lease governing any leasehold
interest of the Company or any of its Subsidiaries, (c) customary provisions
restricting assignment of any licensing agreement or other contract entered into
by Company and its Subsidiaries in the ordinary course of business, (d)
restrictions on the transfer of any asset pending the close of the sale of such
asset and (e) restrictions on the transfer of any assets subject to a Lien
permitted by Section 6.15.

     6.19.  Contingent Obligations. No Borrower will, nor will the Company
permit any other Subsidiary to, make or suffer to exist any Contingent
Obligation (including, without limitation, any Contingent Obligation with
respect to the obligations of a Subsidiary), except Contingent Obligations
arising with respect to (i) this Agreement and the other Loan Documents,
including, without limitation, Reimbursement Obligations (ii) customary
indemnification obligations in favor of purchasers in connection with asset
dispositions permitted hereunder, (iii) customary indemnification obligations
under such Person's charter and bylaws (or equivalent formation documents), (iv)
indemnities in favor of the Persons issuing title insurance policies insuring
the title to any property, (v) guarantees of (a) real property leases of the
Company and its Subsidiaries and (b) personal property Operating Leases of the
Company and its Subsidiaries, in each case entered into in the ordinary course
of business by the Company or any of the Subsidiaries, (vi) the Receivables
Purchase Facility and (vii) other Contingent Obligations constituting guarantees
of Indebtedness of the Company or any of its Subsidiaries permitted under
Section 6.14, provided that to the extent such Indebtedness is subordinated to
the Obligations each such Contingent Obligation shall be subordinated to the
Obligations on terms reasonably acceptable to the Agent.

     6.20.  Leverage Ratio. The Company will maintain, as of the end of each
fiscal quarter, a Leverage Ratio of not greater than 3.25 to 1.00.

     6.21.  Interest Expense Coverage Ratio. The Company will not permit the
ratio (the "Interest Expense Coverage Ratio"), determined as of the end of each
of its fiscal quarters for the

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then most-recently ended four fiscal quarters of (i) Consolidated EBIT during
such period to (ii) Consolidated Interest Expense during such period, all
calculated for the Company and its Subsidiaries on a consolidated basis, to be
less than 3.00 to 1.00.

     6.22.  Minimum Consolidated Net Worth. The Company will at all times
maintain Consolidated Net Worth of not less than the sum of (i) $500,000,000,
plus (ii) 50% of the cumulative positive quarterly Consolidated Net Income for
all fiscal quarters of the Company following the fiscal quarter of the Company
ending July 26, 2003 (without taking into account any net loss in any such
fiscal quarter), plus (iii) 100% of the amount, if any, by which stockholder's
equity of the Company is, in accordance with Agreement Accounting Principles,
increased for all fiscal quarters of the Company following the fiscal quarter of
the Company ending July 26, 2003 as a result of (A) the issuance of any capital
stock of the Company or (B) any Acquisition (including the AbilityOne
Acquisition).

     6.23.  Additional Subsidiary Guarantors. The Company shall execute or shall
cause to be executed on the date any Person becomes a Material Domestic
Subsidiary of the Company (other than an SPV or a Subsidiary Borrower), the
Guaranty (or a supplement to the Guaranty) pursuant to which such Material
Domestic Subsidiary shall become a Guarantor, and shall deliver or cause to be
delivered to the Agent all appropriate corporate resolutions and other
documentation (including opinions of counsel) in each case in form and substance
reasonably satisfactory to the Agent. If at any time (a) the aggregate assets of
all of the Company's Domestic Subsidiaries that are not Subsidiary Borrowers or
Guarantors under the Guaranty exceeds twenty percent (20%) of the consolidated
total assets of the Company and its Subsidiaries, or (b) the aggregate
Consolidated Adjusted Net Income for the four consecutive fiscal quarters most
recently ended of all of the Company's Domestic Subsidiaries that are not
Subsidiary Borrowers or Guarantors under the Guaranty exceeds twenty percent
(20%) of the Company's Consolidated Adjusted Net Income for such period, the
Company will, within 30 days after its senior management becomes aware (or
reasonably should have become aware) of such event, cause to be executed and
delivered to the Agent a supplement to the Guaranty (together with such other
documents, opinions and information as the Agent may require) with respect to
additional Domestic Subsidiaries to the extent necessary so that, after giving
effect thereto, the threshold levels in clauses (a) and (b) above are not
exceeded.

     6.24.  Foreign Subsidiary Investments. No Borrower will, nor will the
Company permit any other Credit Party to, enter into or suffer to exist Foreign
Subsidiary Investments at any time in an aggregate amount greater than
$50,000,000.

     6.25.  Subordinated Indebtedness. No Borrower will, nor with the Company
permit any other Subsidiary to, make any amendment or modification to the
indenture, note or other agreement evidencing or governing any Subordinated
Indebtedness, or directly or indirectly voluntarily prepay, defease or in
substance defease, purchase, redeem, retire or otherwise acquire, any
Subordinated Indebtedness.

     6.26.  Sale of Accounts. No Borrower will, nor will the Company permit any
other Subsidiary to, sell or otherwise dispose of any notes receivable or
accounts receivable, with or without recourse except to the extent permitted by
Section 6.12.4.

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                                   ARTICLE VII

                                    DEFAULTS

     The occurrence of any one or more of the following events shall constitute
a Default:

     7.1    Any representation or warranty made or deemed made by or on behalf
of the Company or any Subsidiary to the Lenders or the Agent under or in
connection with this Agreement, any Credit Extension, or any certificate or
information delivered in connection with this Agreement or any other Transaction
Document shall be false in any material respect on the date as of which made or
deemed made.

     7.2    Nonpayment of (i) principal of any Loan when due, (ii) any
Reimbursement Obligation within one Business Day after the same becomes due or
(iii) interest upon any Loan, any Commitment Fee, LC Facility Fee or other
Obligations under any of the Loan Documents within five (5) days after such
interest, fee or other Obligation becomes due.

     7.3    The breach by any Borrower of any of the terms or provisions of any
of Sections 6.1 through 6.3 or any of Sections 6.10 through 6.26.

     7.4    The breach by any Borrower (other than a breach which constitutes a
Default under another Section of this Article VII) or any other Credit Party of
any of the terms or provisions of this Agreement or any other Loan Document to
which it is a party which is not remedied within five (5) days after the earlier
to occur of (i) written notice from the Agent or any Lender to the Company or
(ii) an Authorized Officer of any Borrower otherwise become aware of any such
breach.

     7.5    Failure of the Company or any Subsidiary to pay when due any
Material Indebtedness (beyond the applicable grace period with respect thereto,
if any); or the default by the Company or any Subsidiary in the performance
(beyond the applicable grace period with respect thereto, if any) of any term,
provision or condition contained in any Material Indebtedness Agreement, or any
other event shall occur or condition exist, the effect of which default, event
or condition is to cause, or to permit the holder(s) of such Material
Indebtedness or the lender(s) under any Material Indebtedness Agreement to
cause, such Material Indebtedness to become due prior to its stated maturity or
any commitment to lend under any Material Indebtedness Agreement to be
terminated prior to its stated expiration date; or any Material Indebtedness of
the Company or any Subsidiary shall be declared to be due and payable or
required to be prepaid or repurchased (other than by a regularly scheduled
payment) prior to the stated maturity thereof; or the Company or any Subsidiary
shall not pay, or admit in writing its inability to pay, its debts generally as
they become due.

     7.6    The Company or any Subsidiary shall (i) have an order for relief
entered with respect to it under the Federal bankruptcy laws as now or hereafter
in effect, (ii) make an assignment for the benefit of creditors, (iii) apply
for, seek, consent to, or acquiesce in, the appointment of a receiver,
custodian, trustee, examiner, liquidator or similar official for it or any
Substantial Portion of its Property, (iv) institute any proceeding seeking an
order for relief under the Federal bankruptcy laws as now or hereafter in effect
or seeking to adjudicate it a bankrupt or

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insolvent, or seeking dissolution, winding up, liquidation, reorganization,
arrangement, adjustment or composition of it or its debts under any law relating
to bankruptcy, insolvency or reorganization or relief of debtors or fail to file
an answer or other pleading denying the material allegations of any such
proceeding filed against it, (v) take any corporate or partnership action to
authorize or effect any of the foregoing actions set forth in this Section 7.6
or (vi) fail to contest in good faith any appointment or proceeding described in
Section 7.7.

     7.7    Without the application, approval or consent of the Company or any
Subsidiary, a receiver, trustee, examiner, liquidator or similar official shall
be appointed for the Company or any Subsidiary or any Substantial Portion of its
Property, or a proceeding described in Section 7.6(iv) shall be instituted
against the Company or any Subsidiary and such appointment continues
undischarged or such proceeding continues undismissed or unstayed for a period
of 30 consecutive days.

     7.8    Any court, government or governmental agency shall condemn, seize or
otherwise appropriate, or take custody or control of, all or any portion of the
Property of the Company and the Subsidiaries which, when taken together with all
other Property of the Company and the Subsidiaries so condemned, seized,
appropriated, or taken custody or control of, during the twelve-month period
ending with the month in which any such action occurs, constitutes a Substantial
Portion.

     7.9    The Company or any Subsidiary shall fail within 30 days to pay, bond
or otherwise discharge one or more (i) judgments or orders for the payment of
money in excess of $5,000,000 (or the equivalent thereof in currencies other
than Dollars) in the aggregate, or (ii) nonmonetary judgments or orders which,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect, which judgment(s), in any such case, is/are not (a)
stayed on appeal or otherwise being appropriately contested in good faith or (b)
paid in full by third-party insurers under the Company's or any Subsidiary's
insurance policies.

     7.10   The Unfunded Liabilities of all Single Employer Plans shall exceed
$10,000,000 in the aggregate, or any Reportable Event shall occur in connection
with any Plan.

     7.11   Nonpayment by the Company or any Subsidiary of any Rate Management
Obligation, in an outstanding principal amount of $5,000,000 or more, when due
or the breach by the Company or any Subsidiary of any term, provision or
condition contained in any Rate Management Transaction or any transaction of the
type described in the definition of "Rate Management Transactions," whether or
not any Lender or Affiliate of a Lender is a party thereto.

     7.12   Any Change in Control shall occur.

     7.13   The Company or any other member of the Controlled Group shall have
been notified by the sponsor of a Multiemployer Plan that it has incurred,
pursuant to Section 4201 of ERISA, withdrawal liability to such Multiemployer
Plan in an amount which, when aggregated with all other amounts required to be
paid to Multiemployer Plans by the Company or any other member of the Controlled
Group as withdrawal liability (determined as of the date of such notification),
exceeds $10,000,000 or requires payments exceeding $10,000,000 per annum.

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     7.14   The Company or any other member of the Controlled Group shall have
been notified by the sponsor of a Multiemployer Plan that such Multiemployer
Plan is in reorganization or is being terminated, within the meaning of Title IV
of ERISA, if as a result of such reorganization or termination the aggregate
annual contributions of the Company and the other members of the Controlled
Group (taken as a whole) to all Multiemployer Plans which are then in
reorganization or being terminated have been or will be increased, in the
aggregate, over the amounts contributed to such Multiemployer Plans for the
respective plan years of such Multiemployer Plans immediately preceding the plan
year in which the reorganization or termination occurs by an amount exceeding
$10,000,000.

     7.15   The Company or any Subsidiary shall (i) be the subject of any
proceeding or investigation pertaining to the release by the Company or any
Subsidiary or any other Person of any toxic or hazardous waste or substance into
the environment, or (ii) violate any Environmental Law, which, in the case of an
event described in clause (i) or clause (ii), has resulted in liability to the
Company or any Subsidiary in an amount equal to $10,000,000 or more, which
liability is not paid, bonded or otherwise discharged within 60 days or which is
not stayed on appeal and being appropriately contested in good faith.

     7.16   Any Loan Document shall fail to remain in full force or effect
against the Company or any Subsidiary or any action shall be taken or shall fail
to be taken to discontinue or to assert the invalidity or unenforceability of,
or which results in the discontinuation or invalidity or unenforceability of,
any Loan Document.

     7.17   An event (such event, an "Off-Balance Sheet Trigger Event") shall
occur which (i) permits the investors or purchasers in respect of Off-Balance
Sheet Liabilities of the Company or any Affiliate of the Company to require the
amortization or liquidation of such Off-Balance Sheet Liabilities as a result of
the non-payment of any Off-Balance Sheet Liability having an aggregate
outstanding principal amount (or similar outstanding liability) greater than or
equal to $5,000,000 and (x) such Off-Balance Sheet Trigger Event shall not be
remedied or waived within the later to occur of the tenth day after the
occurrence thereof or the expiry date of any grace period related thereto under
the agreement evidencing such Off-Balance Sheet Liabilities, or (y) such
investors shall require the amortization or liquidation of such Off-Balance
Sheet Liabilities as a result of such Off-Balance Sheet Trigger Event, (ii)
results in the termination of reinvestments of collections or proceeds of
receivables and related assets under the agreements evidencing such Off-Balance
Sheet Liabilities, or (iii) causes or otherwise permits the replacement or
substitution of the Company or any Affiliate thereof as the servicer under the
agreements evidencing such Off-Balance Sheet Liabilities; provided, however,
that this Section 7.17 shall not apply on any date with respect to (a) any
voluntary request by the Company or an Affiliate thereof for an above-described
amortization, liquidation, or termination of reinvestments so long as the
aforementioned investors or purchasers cannot independently require on such date
such amortization, liquidation or termination of reinvestments or (b) any
scheduled amortization or liquidation at the stated maturity of the facility
evidencing such Off-Balance Sheet Liabilities.

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                                  ARTICLE VIII

                 ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES

     8.1.   Acceleration. (i) If any Default described in Section 7.6 or 7.7
occurs with respect to any Credit Party, the obligations of the Lenders to make
Loans hereunder and the obligation and power of the LC Issuers to issue Facility
LCs shall automatically terminate and the Obligations shall immediately become
due and payable without any election or action on the part of the Agent, any LC
Issuer or any Lender, and the Borrowers will be and become thereby
unconditionally obligated, without any further notice, act or demand, to pay the
Agent an amount in immediately available funds, which funds shall be held in the
Facility LC Collateral Account, equal to (x) the amount of the LC Obligations at
such time minus (y) the amount on deposit in the Facility LC Collateral Account
at such time which is free and clear of all rights and claims of third parties
and has not been applied against the Obligations (the "Collateral Shortfall
Amount"). Without prejudice to the provisions of Section 4.2, if any other
Default occurs, the Required Lenders (or the Agent with the consent of the
Required Lenders) may (a) terminate or suspend the obligations of the Lenders to
make Loans hereunder and the obligation and power of the LC Issuers to issue
Facility LCs, or declare the Obligations to be due and payable, or both,
whereupon the Obligations shall become immediately due and payable, without
presentment, demand, protest or notice of any kind, all of which each Borrower
hereby expressly waives and (b) upon notice to the Borrowers and in addition to
the continuing right to demand payment of all amounts payable under this
Agreement, make demand on the Borrowers to pay, and the Borrowers will forthwith
upon such demand and without any further notice or act pay to the Agent the
Collateral Shortfall Amount which funds shall be deposited in the Facility LC
Collateral Account.

     (ii)   If at any time while any Default is continuing, the Agent determines
            that the Collateral Shortfall Amount at such time is greater than
            zero, the Agent may make demand on the Borrowers to pay, and the
            Borrowers will, forthwith upon such demand and without any further
            notice or act, pay to the Agent the Collateral Shortfall Amount,
            which funds shall be deposited in the Facility LC Collateral
            Account.

     (iii)  The Agent may at any time or from time to time after funds are
            deposited in the Facility LC Collateral Account, apply such funds to
            the payment of the Obligations and any other amounts as shall from
            time to time have become due and payable by the Borrowers to the
            Lenders or the LC Issuers under the Loan Documents.

     (iv)   At any time while any Default is continuing, no Borrower nor any
            Person claiming on behalf of or through any Borrower shall have any
            right to withdraw any of the funds held in the Facility LC
            Collateral Account. After all of the Obligations have been
            indefeasibly paid in full and the Aggregate Revolving Loan
            Commitment has been terminated, any funds remaining in the Facility
            LC Collateral Account shall be returned by the Agent to the Company
            or paid to whomever may be legally entitled thereto at such time.

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     (v)    If, after acceleration of the maturity of the Obligations or
            termination of the obligations of the Lenders to make Loans and the
            obligations and power of the LC Issuers to issue Facility LCs
            hereunder as a result of any Default (other than any Default as
            described in Section 7.6 or 7.7 with respect to any Credit Party)
            and before any judgment or decree for the payment of the Obligations
            due shall have been obtained or entered, the Required Lenders (in
            their sole discretion) shall so direct, the Agent shall, by notice
            to the Borrowers, rescind and annul such acceleration and/or
            termination.

     8.2.   Amendments. Subject to the provisions of this Section 8.2, the
Required Lenders (or the Agent with the consent in writing of the Required
Lenders) and the Borrowers may enter into agreements supplemental hereto for the
purpose of adding or modifying any provisions to the Loan Documents or changing
in any manner the rights of the Lenders or the Borrowers hereunder or thereunder
or waiving any Default hereunder or thereunder; provided, however, that no such
supplemental agreement shall, without the consent of each Lender affected
thereby:

            8.2.1    Extend the Revolving Loan Termination Date, extend the
     final maturity of any Revolving Loan or extend the expiry date of any
     Facility LC to a date after the Revolving Loan Termination Date, extend the
     final maturity date of any Term Loan to a date after the Term Loan Maturity
     Date, or postpone any regularly scheduled payment of principal of any Loan
     or forgive all or any portion of the principal amount thereof, or any
     Reimbursement Obligation related thereto, or reduce the rate or extend the
     time of payment of interest or fees thereon or Reimbursement Obligations
     related thereto (other than a waiver of the application of the default rate
     of interest or LC Fees pursuant to Section 2.12 hereof, which shall only
     require the approval of the Required Lenders).

            8.2.2    Reduce the percentage specified in the definition of
     Required Lenders or any other percentage of Lenders specified to be the
     applicable percentage in this Agreement to act on specified matters or
     amend the definition of "Pro Rata Share", "Revolving Loan Pro Rata Share"
     or "Term Loan Pro Rata Share".

            8.2.3    Increase the amount of the Revolving Loan Commitment of any
     Lender hereunder or the commitment to issue Facility LCs, or permit any
     Borrower to assign its rights or obligations under this Agreement.

            8.2.4    Amend this Section 8.2.

            8.2.5    Other than in connection with a transaction permitted under
     this Agreement, release (i) any Borrower from its obligations under Article
     XVI or (ii) any Guarantor that remains a Material Domestic Subsidiary from
     its obligations under the Guaranty.

No amendment of any provision of this Agreement relating to the Agent shall be
effective without the written consent of the Agent. The Agent may waive payment
of the fee required under Section 12.3.3 without obtaining the consent of any
other party to this Agreement. No amendment of any provision of this Agreement
relating to the Swing Line Lender or any Swing Line Loan shall be effective
without the written consent of the Swing Line Lender. No

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amendment of any provisions of this Agreement relating to any LC Issuer shall be
effective without the written consent of such LC Issuer.

     8.3.   Preservation of Rights. No delay or omission of the Lenders, the LC
Issuers or the Agent to exercise any right under the Loan Documents shall impair
such right or be construed to be a waiver of any Default or an acquiescence
therein, and the making of a Credit Extension notwithstanding the existence of a
Default or Unmatured Default or the inability of a Borrower to satisfy the
conditions precedent to such Credit Extension shall not constitute any waiver or
acquiescence. Any single or partial exercise of any such right shall not
preclude other or further exercise thereof or the exercise of any other right,
and no waiver, amendment or other variation of the terms, conditions or
provisions of the Loan Documents whatsoever shall be valid unless in writing
signed by, or by the Agent with the consent of, the requisite number of Lenders
required pursuant to Section 8.2, and then only to the extent in such writing
specifically set forth. All remedies contained in the Loan Documents or by law
afforded shall be cumulative and all shall be available to the Agent, the LC
Issuers and the Lenders until all of the Obligations have been paid in full.

                                   ARTICLE IX

                               GENERAL PROVISIONS

     9.1.   Survival of Representations. All representations and warranties of
the Borrowers contained in this Agreement shall survive the making of the Credit
Extensions herein contemplated.

     9.2.   Governmental Regulation. Anything contained in this Agreement to the
contrary notwithstanding, neither any LC Issuer nor any Lender shall be
obligated to extend credit to any Borrower in violation of any limitation or
prohibition provided by any applicable statute or regulation.

     9.3.   Headings. Section headings in the Loan Documents are for convenience
of reference only, and shall not govern the interpretation of any of the
provisions of the Loan Documents.

     9.4.   Entire Agreement. The Loan Documents embody the entire agreement and
understanding among the Borrowers, the Agent, the LC Issuers and the Lenders and
supersede all prior agreements and understandings among the Borrowers, the
Agent, the LC Issuers and the Lenders relating to the subject matter thereof
other than those contained in the fee letter described in Section 10.13 which
shall survive and remain in full force and effect during the term of this
Agreement.

     9.5.   Several Obligations; Benefits of this Agreement. The respective
obligations of the Lenders hereunder are several and not joint and no Lender
shall be the partner or agent of any other (except to the extent to which the
Agent is authorized to act as such). The failure of any Lender to perform any of
its obligations hereunder shall not relieve any other Lender from any of its
obligations hereunder. This Agreement shall not be construed so as to confer any
right or benefit upon any Person other than the parties to this Agreement and
their respective successors

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and assigns, provided, however, that the parties hereto expressly agree that the
Arrangers shall enjoy the benefits of the provisions of Sections 9.6, 9.10 and
10.11 to the extent specifically set forth therein and shall have the right to
enforce such provisions on its own behalf and in its own name to the same extent
as if it were a party to this Agreement.

     9.6.   Expenses; Indemnification.

     (i)    The Borrowers shall reimburse the Agent and the Arrangers for any
            reasonable costs, internal charges and out-of-pocket expenses
            (including outside attorneys' and paralegals' fees and expenses
            of and fees for other advisors and professionals engaged by the
            Agent or the Arrangers and, unless a Default shall be continuing,
            with the consent of the Company) paid or incurred by the Agent or
            the Arrangers in connection with the investigation, preparation,
            negotiation, documentation, execution, delivery, syndication,
            distribution (including, without limitation, via the internet),
            review, amendment, modification and administration of the
            Transaction Documents. Each Borrower also agrees to reimburse the
            Agent, the Arrangers, the LC Issuers and the Lenders for any
            costs, internal charges and out-of-pocket expenses (including
            outside attorneys' and paralegals' fees and expenses of outside
            attorneys and paralegals for the Agent, the Arrangers, the LC
            Issuers and the Lenders) paid or incurred by the Agent, the
            Arrangers, any LC Issuer or any Lender in connection with the
            collection and enforcement of the Loan Documents. Expenses being
            reimbursed by the Borrowers under this Section include, without
            limitation, costs and expenses incurred in connection with the
            Reports described in the following sentence. Each Borrower
            acknowledges that from time to time Bank One may prepare and may
            distribute to the Lenders (but shall have no obligation or duty
            to prepare or to distribute to the Lenders) certain audit reports
            (the "Reports") pertaining to such Borrower's assets for internal
            use by Bank One from information furnished to it by or on behalf
            of such Borrower, after Bank One has exercised its rights of
            inspection pursuant to this Agreement.

     (ii)   Each Borrower hereby further agrees to indemnify the Agent, the
            Arrangers, each LC Issuer, each Lender, their respective
            affiliates, and each of their directors, officers and employees
            against all losses, claims, damages, penalties, judgments,
            liabilities and expenses (including, without limitation, all
            expenses of litigation or preparation therefor whether or not the
            Agent, the Arrangers, any LC Issuer, any Lender or any affiliate
            is a party thereto, and all outside attorneys' and paralegals'
            fees and expenses of outside attorneys and paralegals of the
            party seeking indemnification) which any of them may pay or incur
            arising out of or relating to this Agreement, the other
            Transaction Documents, the AbilityOne Acquisition and the other
            transactions contemplated hereby or the direct or indirect
            application or proposed application of the proceeds of any Credit
            Extension hereunder except to the extent that they are determined
            in a final non-appealable judgment by a court of competent
            jurisdiction to have resulted from the gross negligence or
            willful misconduct of the party seeking indemnification. The
            obligations of the Borrowers under this Section 9.6 shall survive
            the termination of this Agreement.

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     9.7.   Numbers of Documents. All statements, notices, closing documents,
and requests hereunder shall be furnished to the Agent with sufficient
counterparts so that the Agent may furnish one to each of the Lenders, to the
extent that the Agent deems necessary.

     9.8.   Accounting. Except as provided to the contrary herein, all
accounting terms used in the calculation of any financial covenant or test shall
be interpreted and all accounting determinations hereunder in the calculation of
any financial covenant or test shall be made in accordance with Agreement
Accounting Principles. If any changes in generally accepted accounting
principles are hereafter required or permitted and are adopted by the Company or
any Subsidiary with the agreement of its independent certified public
accountants and such changes result in a change in the method of calculation of
any of the financial covenants, tests, restrictions or standards herein or in
the related definitions or terms used therein ("Accounting Changes"), the
parties hereto agree, at the Company's request, to enter into negotiations, in
good faith, in order to amend such provisions in a credit neutral manner so as
to reflect equitably such changes with the desired result that the criteria for
evaluating the Company's and its Subsidiaries' financial condition shall be the
same after such changes as if such changes had not been made; provided, however,
until such provisions are amended in a manner reasonably satisfactory to the
Agent and the Required Lenders, no Accounting Change shall be given effect in
such calculations. In the event such amendment is entered into, all references
in this Agreement to Agreement Accounting Principles shall mean generally
accepted accounting principles, including the Accounting Change, as of the date
of such amendment. Notwithstanding the foregoing, all financial statements to be
delivered by the Borrowers pursuant to Section 6.1 shall be prepared in
accordance with generally accepted accounting principles in effect at such time.

     9.9.   Severability of Provisions. Any provision in any Loan Document that
is held to be inoperative, unenforceable, or invalid in any jurisdiction shall,
as to that jurisdiction, be inoperative, unenforceable, or invalid without
affecting the remaining provisions in that jurisdiction or the operation,
enforceability, or validity of that provision in any other jurisdiction, and to
this end the provisions of all Loan Documents are declared to be severable.

     9.10.  Nonliability of Lenders. The relationship between the Borrowers on
the one hand and the Lenders, the LC Issuers and the Agent on the other hand
shall be solely that of borrower and lender. Neither the Agent (except to the
limited extent as provided by Section 12.3.4 relating to maintaining the
Register), the Arrangers, the LC Issuers, nor any Lender shall have any
fiduciary responsibilities to any Borrower or any other Credit Party. Neither
the Agent, the Arrangers, the LC Issuers nor any Lender undertakes any
responsibility to any Borrower or any other Credit Party to review or inform any
Credit Party of any matter in connection with any phase of any Credit Party's
business or operations. Each Borrower agrees that neither the Agent, the
Arrangers, the LC Issuers, nor any Lender shall have liability to any Borrower
(whether sounding in tort, contract or otherwise) for losses suffered by any
Borrower in connection with, arising out of, or in any way related to, the
transactions contemplated and the relationship established by the Loan
Documents, or any act, omission or event occurring in connection therewith,
unless it is determined in a final non-appealable judgment by a court of
competent jurisdiction that such losses resulted from the gross negligence or
willful misconduct of the party from which recovery is sought. Neither the
Agent, the Arrangers, the LC Issuers nor any Lender shall have any liability
with respect to, and each Borrower hereby waives, releases and agrees

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not to sue for, any special, indirect, consequential or punitive damages
suffered by the Company or any Subsidiary in connection with, arising out of, or
in any way related to the Loan Documents or the transactions contemplated
thereby.

     9.11.  Confidentiality. Each Lender agrees to hold any confidential
information which it may receive from any Borrower pursuant to this Agreement in
confidence in accordance with its respective customary practices (but in any
event in accordance with reasonable confidentiality practices), except for
disclosure (i) to its Affiliates and to other Lenders and their respective
Affiliates, for use solely in connection with the transactions contemplated
hereby, (ii) to legal counsel, accountants, and other professional advisors to
such Lender or to a Transferee who are expected to be involved in the evaluation
of such information in connection with the transactions contemplated hereby, in
each case which have been informed as to the confidential nature of such
information, (iii) to regulatory officials having jurisdiction over it, (iv) to
any Person as required by law, regulation, or legal process, (v) of information
that presently or hereafter becomes available to such Lender on a
non-confidential basis from a source other than any Borrower and other than as a
result of disclosure not otherwise permitted by this Section 9.11, (vi) to any
Person in connection with any legal proceeding to which such Lender is a party,
(vii) to such Lender's direct or indirect contractual counterparties in credit
derivative transactions or to legal counsel, accountants and other professional
advisors to such counterparties, in each case which have been informed as to the
confidential nature of such information, (viii) permitted by Section 12.4 and
(ix) to rating agencies if requested or required by such agencies in connection
with a rating relating to the Credit Extensions hereunder. Without limiting
Section 9.4, each Borrower agrees that the terms of this Section 9.11 shall set
forth the entire agreement between the Borrowers and each Lender (including the
Agent) with respect to any confidential information previously or hereafter
received by such Lender in connection with this Agreement or any other Loan
Document, and this Section 9.11 shall supersede any and all prior
confidentiality agreements entered into by such Lender with respect to such
confidential information. Notwithstanding anything herein to the contrary,
confidential information shall not include, and each party hereto (and each
employee, representative or other agent of any party hereto) may disclose to any
and all Persons, without limitation of any kind, the U.S. federal income tax
treatment and U.S. federal income tax structure of the transactions contemplated
hereby and all materials of any kind (including opinions or other tax analyses)
that are or have been provided to such party relating to such tax treatment or
tax structure, and it is hereby confirmed that each party hereto has been
authorized to make such disclosures since the commencement of discussions
regarding the transactions contemplated hereby.

     9.12.  Lenders Not Utilizing Plan Assets. Each Lender and Designated Lender
represents and warrants that none of the consideration used by such Lender or
Designated Lender to make its Loans constitutes for any purpose of ERISA or
Section 4975 of the Code assets of any "plan" as defined in Section 3(3) of
ERISA or Section 4975 of the Code and the rights and interests of such Lender or
Designated Lender in and under the Loan Documents shall not constitute such
"plan assets" under ERISA.

     9.13.  Nonreliance. Each Lender hereby represents that it is not relying on
or looking to any margin stock (as defined in Regulation U) as collateral in the
extension or maintenance of the credit provided for herein.

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     9.14.  Disclosure. Each Borrower and each Lender, including the LC Issuers,
hereby acknowledge and agree that each Lender and/or its Affiliates from time to
time may hold investments in, make other loans to or have other relationships
with the Borrowers and their Affiliates.

     9.15.  Performance of Obligations. Each Borrower agrees that the Agent may,
but shall have no obligation to (i) at any time, pay or discharge taxes, liens,
security interests or other encumbrances levied or placed on or threatened
against any collateral for the Obligations and (ii) after the occurrence and
during the continuance of a Default make any other payment or perform any act
required of the Company or any Subsidiary under any Loan Document or take any
other action which the Agent in its discretion deems necessary or desirable to
protect or preserve the collateral, if any, for the Obligations, including,
without limitation, any action to (x) effect any repairs or obtain any insurance
called for by the terms of any of the Loan Documents and to pay all or any part
of the premiums therefor and the costs thereof and (y) pay any rents payable by
the Company or any Subsidiary which are more than 30 days past due, or as to
which the landlord has given notice of termination, under any lease. The Agent
shall use its best efforts to give the Company notice of any action taken under
this Section 9.15 prior to the taking of such action or promptly thereafter
provided the failure to give such notice shall not affect any Borrower's
obligations in respect thereof. Each Borrower, jointly and severally, agrees to
pay the Agent, upon demand, the principal amount of all funds advanced by the
Agent under this Section 9.15, together with interest thereon at the rate from
time to time applicable to Floating Rate Loans from the date of such advance
until the outstanding principal balance thereof is paid in full. If the
Borrowers fail to make payment in respect of any such advance under this Section
9.15 within one (1) Business Day after the date the Company receives written
demand therefor from the Agent, the Agent shall promptly notify each Lender and
each Lender agrees that it shall thereupon make available to the Agent, in
Dollars in immediately available funds, the amount equal to such Lender's Pro
Rata Share of such advance. If such funds are not made available to the Agent by
such Lender within one (1) Business Day after the Agent's demand therefor, the
Agent will be entitled to recover any such amount from such Lender together with
interest thereon at the Federal Funds Effective Rate for each day during the
period commencing on the date of such demand and ending on the date such amount
is received. The failure of any Lender to make available to the Agent its Pro
Rata Share of any such unreimbursed advance under this Section 9.15 shall
neither relieve any other Lender of its obligation hereunder to make available
to the Agent such other Lender's Pro Rata Share of such advance on the date such
payment is to be made nor increase the obligation of any other Lender to make
such payment to the Agent. All outstanding principal of, and interest on,
advances made under this Section 9.15 shall constitute Obligations until paid in
full by the Borrowers.

     9.16.  Relations Among Lenders.

            9.16.1   No Action Without Consent. Except with respect to the
     exercise of setoff rights of any Lender, including the LC Issuers, in
     accordance with Section 11.1, the proceeds of which are applied in
     accordance with this Agreement, each Lender agrees that it will not take
     any action, nor institute any actions or proceedings, against any Borrower
     or any other obligor hereunder or with respect to any Loan Document,
     without the prior written consent of the Required Lenders or, as may be
     provided in this Agreement or the other Loan Documents, with the consent of
     the Agent.

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            9.16.2   Not Partners; No Liability. The Lenders, including the LC
     Issuers, are not partners or co-venturers, and no Lender shall be liable
     for the acts or omissions of, or (except as otherwise set forth herein in
     case of the Agent) authorized to act for, any other Lender. The Agent shall
     have the exclusive right on behalf of the Lenders to enforce the payment of
     the principal of and interest on any Loan or any Facility LC after the date
     such principal or interest has become due and payable pursuant to the terms
     of this Agreement.

     9.17.  USA Patriot Act Notification. The following notification is provided
to the Borrowers pursuant to Section 326 of the USA Patriot Act of 2001, 31
U.S.C. Section 5318:

          IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To
     help the government fight the funding of terrorism and money laundering
     activities, Federal law requires all financial institutions to obtain,
     verify, and record information that identifies each person or entity that
     opens an account, including any deposit account, treasury management
     account, loan, other extension of credit, or other financial services
     product. What this means for the Borrowers: When a Borrower opens an
     account, the Agent and the Lenders will ask for such Borrower's name, tax
     identification number, business address, and other information that will
     allow the Agent and the Lenders to identify such Borrower. The Agent and
     the Lenders may also ask to see such Borrower's legal organizational
     documents or other identifying documents.

                                    ARTICLE X

                                    THE AGENT

     10.1.  Appointment; Nature of Relationship. Bank One is hereby appointed by
each of the Lenders as its contractual representative (herein referred to as the
"Agent") hereunder and under each other Loan Document, and each of the Lenders
irrevocably authorizes the Agent to act as the contractual representative of
such Lender with the rights and duties expressly set forth herein and in the
other Loan Documents. The Agent agrees to act as such contractual representative
upon the express conditions contained in this Article X. Notwithstanding the use
of the defined term "Agent," it is expressly understood and agreed that the
Agent shall not have any fiduciary responsibilities to any of the Holders of
Obligations (including, without limitation, the Lenders) by reason of this
Agreement or any other Loan Document and that the Agent is merely acting as the
contractual representative of the Lenders with only those duties as are
expressly set forth in this Agreement and the other Loan Documents. In its
capacity as the Lenders' contractual representative, the Agent (i) does not
hereby assume any fiduciary duties to any of the Holders of Obligations, (ii) is
a "representative" of the Holders of Obligations within the meaning of the term
"secured party" as defined in the Illinois Uniform Commercial Code and (iii) is
acting as an independent contractor, the rights and duties of which are limited
to those expressly set forth in this Agreement and the other Loan Documents.
Each of the Lenders, for itself and on behalf of its Affiliates as Holders of
Obligations, hereby agrees to assert no claim against the Agent on any agency
theory or any other theory of liability for breach of fiduciary duty, all of
which claims each Holder of Obligations hereby waives.

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     10.2.  Powers. The Agent shall have and may exercise such powers under the
Loan Documents as are specifically delegated to the Agent by the terms of each
thereof, together with such powers as are reasonably incidental thereto. The
Agent shall have no implied duties or fiduciary duties to the Lenders, or any
obligation to the Lenders to take any action thereunder except any action
specifically provided by the Loan Documents to be taken by the Agent.

     10.3.  General Immunity. Neither the Agent nor any of its directors,
officers, agents or employees shall be liable to any Borrower, any Subsidiary,
any Lender or any Holder of Obligations for any action taken or omitted to be
taken by it or them hereunder or under any other Loan Document or in connection
herewith or therewith except to the extent such action or inaction is determined
in a final, non-appealable judgment by a court of competent jurisdiction to have
arisen from the gross negligence or willful misconduct of such Person.

     10.4.  No Responsibility for Loans, Recitals, etc. Neither the Agent nor
any of its directors, officers, agents or employees shall be responsible for or
have any duty to ascertain, inquire into, or verify (a) any statement, warranty
or representation made in connection with any Loan Document or any borrowing
hereunder; (b) the performance or observance of any of the covenants or
agreements of any obligor under any Loan Document, including, without
limitation, any agreement by an obligor to furnish information directly to each
Lender; (c) the satisfaction of any condition specified in Article IV, except
receipt of items required to be delivered solely to the Agent; (d) the existence
or possible existence of any Default or Unmatured Default; (e) the validity,
enforceability, effectiveness, sufficiency or genuineness of any Loan Document
or any other instrument or writing furnished in connection therewith; (f) the
value sufficiency, creation, perfection or priority of any Lien in any
collateral security; or (g) the financial condition of the Company, any
Subsidiary or any guarantor of any of the Obligations or of any of the
Company's, such Subsidiary's or any such guarantor's respective Subsidiaries.
The Agent shall have no duty to disclose to the Lenders information that is not
required to be furnished by any Borrower to the Agent at such time, but is
voluntarily furnished by such Borrower to the Agent (either in its capacity as
Agent or in its individual capacity).

     10.5.  Action on Instructions of Lenders. The Agent shall in all cases be
fully protected in acting, or in refraining from acting, hereunder and under any
other Loan Document in accordance with written instructions signed by the
Required Lenders (or all of the Lenders in the event that and to the extent that
this Agreement expressly requires such approval), and such instructions and any
action taken or failure to act pursuant thereto shall be binding on all of the
Lenders. The Lenders hereby acknowledge that the Agent shall be under no duty to
take any discretionary action permitted to be taken by it pursuant to the
provisions of this Agreement or any other Loan Document unless it shall be
requested in writing to do so by the Required Lenders (or all of the Lenders in
the event that and to the extent that this Agreement expressly requires such
approval). The Agent shall be fully justified in failing or refusing to take any
action hereunder and under any other Loan Document unless it shall first be
indemnified to its satisfaction by the Lenders pro rata against any and all
liability, cost and expense that it may incur by reason of taking or continuing
to take any such action.

     10.6.  Employment of Agents and Counsel. The Agent may execute any of its
duties as Agent hereunder and under any other Loan Document by or through
employees, agents, and attorneys-in-fact and shall not be answerable to the
Lenders, except as to money or securities

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received by it or its authorized agents, for the default or misconduct of any
such agents or attorneys-in-fact selected by it with reasonable care. The Agent
shall be entitled to advice of counsel concerning the contractual arrangement
between the Agent and the Lenders and all matters pertaining to the Agent's
duties hereunder and under any other Loan Document.

     10.7.  Reliance on Documents; Counsel. The Agent shall be entitled to rely
upon any Note, notice, consent, certificate, affidavit, letter, telegram,
facsimile, telex, electronic mail message, statement, paper or document believed
by it to be genuine and correct and to have been signed or sent by the proper
person or persons, and, in respect to legal matters, upon the opinion of counsel
selected by the Agent, which counsel may be employees of the Agent. For purposes
of determining compliance with the conditions specified in Sections 4.1, 4.2 and
4.3, each Lender that has signed this Agreement (or otherwise become party
hereto pursuant to an Assignment Agreement) shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Agent shall have received notice from such
Lender prior to the applicable date specifying its objection thereto.

     10.8.  Agent's Reimbursement and Indemnification. The Lenders agree to
reimburse and indemnify the Agent ratably in proportion to the Lenders' Pro Rata
Shares of the Aggregate Revolving Loan Commitment (or, if the Aggregate
Revolving Loan Commitment has been terminated, of the Aggregate Outstanding
Revolving Credit Exposure) plus the Term Loans (i) for any amounts not
reimbursed by the Borrowers for which the Agent is entitled to reimbursement by
any Credit Party under the Loan Documents, (ii) for any other expenses incurred
by the Agent on behalf of the Lenders, in connection with the preparation,
execution, delivery, administration and enforcement of the Loan Documents
(including, without limitation, for any expenses incurred by the Agent in
connection with any dispute between the Agent and any Lender or between two or
more of the Lenders) and (iii) for any liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind and nature whatsoever which may be imposed on, incurred by or
asserted against the Agent in any way relating to or arising out of the Loan
Documents or any other document delivered in connection therewith or the
transactions contemplated thereby (including, without limitation, for any such
amounts incurred by or asserted against the Agent in connection with any dispute
between the Agent and any Lender or between two or more of the Lenders), or the
enforcement of any of the terms of the Loan Documents or of any such other
documents, provided that (i) no Lender shall be liable for any of the foregoing
to the extent any of the foregoing is found in a final, non-appealable judgment
by a court of competent jurisdiction to have resulted from the gross negligence
or willful misconduct of the Agent and (ii) any indemnification required
pursuant to Section 3.5(vii) shall, notwithstanding the provisions of this
Section 10.8, be paid by the relevant Lender in accordance with the provisions
thereof. The obligations of the Lenders under this Section 10.8 shall survive
payment of the Obligations and termination of this Agreement.

     10.9.  Notice of Default. The Agent shall not be deemed to have knowledge
or notice of the occurrence of any Default or Unmatured Default hereunder unless
the Agent has received written notice from a Lender or the Company referring to
this Agreement describing such Default or Unmatured Default and stating that
such notice is a "notice of default". In the event that the Agent receives such
a notice, the Agent shall give prompt notice thereof to the Lenders.

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     10.10. Rights as a Lender. In the event the Agent is a Lender, the Agent
shall have the same rights and powers hereunder and under any other Loan
Document with respect to its Revolving Loan Commitment and its Credit Extensions
as any Lender and may exercise the same as though it were not the Agent, and the
term "Lender" or "Lenders" shall, at any time when the Agent is a Lender, unless
the context otherwise indicates, include the Agent in its individual capacity.
The Agent and its Affiliates may accept deposits from, lend money to, and
generally engage in any kind of trust, debt, equity or other transaction, in
addition to those contemplated by this Agreement or any other Loan Document,
with the Company or any Subsidiary in which the Company or such Subsidiary is
not restricted hereby from engaging with any other Person. The Agent, in its
individual capacity, is not obligated to remain a Lender.

     10.11. Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Agent, the Arrangers or any other
Lender and based on the financial statements prepared by the Company and such
other documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement and the other Loan
Documents. Each Lender also acknowledges that it will, independently and without
reliance upon the Agent, the Arrangers or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under this
Agreement and the other Loan Documents.

     10.12. Successor Agent. The Agent may resign at any time by giving written
notice thereof to the Lenders and the Company, such resignation to be effective
upon the appointment of a successor Agent or, if no successor Agent has been
appointed, forty-five days after the retiring Agent gives notice of its
intention to resign. The Agent may be removed at any time with or without cause
by written notice received by the Agent from the Required Lenders, such removal
to be effective on the date specified by the Required Lenders. Upon any such
resignation or removal, the Required Lenders shall have the right to appoint, on
behalf of the Borrowers and the Lenders, a successor Agent. If no successor
Agent shall have been so appointed by the Required Lenders within thirty days
after the resigning Agent's giving notice of its intention to resign, then the
resigning Agent may appoint, on behalf of the Borrowers and the Lenders, a
successor Agent. Notwithstanding the two immediately preceding sentences: (x)
subject to clause (y) of this sentence, the consent of the Borrowers shall be
required prior to the appointment of a successor Agent unless such successor
Agent is a Lender or an Affiliate of a Lender, provided that the consent of the
Borrowers shall not be required if a Default has occurred and is continuing, and
(y) the Agent may at any time without the consent of any Borrower or any Lender,
appoint any of its Affiliates which is a commercial bank as a successor Agent
hereunder. If the Agent has resigned or been removed and no successor Agent has
been appointed, the Lenders may perform all the duties of the Agent hereunder
and the Borrowers shall make all payments in respect of the Obligations to the
applicable Lender and for all other purposes shall deal directly with the
Lenders. No successor Agent shall be deemed to be appointed hereunder until such
successor Agent has accepted the appointment. Any such successor Agent shall be
a commercial bank having capital and retained earnings of at least $100,000,000.
Upon the acceptance of any appointment as Agent hereunder by a successor Agent,
such successor Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the resigning or removed Agent. Upon
the effectiveness of the resignation or removal of the Agent, the resigning or
removed Agent shall be discharged from its

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duties and obligations hereunder and under the Loan Documents. After the
effectiveness of the resignation or removal of an Agent, the provisions of this
Article X shall continue in effect for the benefit of such Agent in respect of
any actions taken or omitted to be taken by it while it was acting as the Agent
hereunder and under the other Loan Documents. In the event that there is a
successor to the Agent by merger, or the Agent assigns its duties and
obligations to an Affiliate pursuant to this Section 10.12, then the term "Prime
Rate" as used in this Agreement shall mean the prime rate, base rate or other
analogous rate of the new Agent.

     10.13. Agent and Arranger Fees. The Company agrees to pay to the Agent and
the Arrangers, for their respective accounts, the fees agreed to by the Company,
the Agent, Bank of America, N.A. and the Arrangers pursuant to that certain
letter agreement dated October 2, 2003, or as otherwise agreed from time to
time.

     10.14. Delegation to Affiliates. The Borrowers and the Lenders agree that
the Agent may delegate any of its duties under this Agreement to any of its
Affiliates. Any such Affiliate (and such Affiliate's directors, officers, agents
and employees) which performs duties in connection with this Agreement shall be
entitled to the same benefits of the indemnification, waiver and other
protective provisions to which the Agent is entitled under Articles IX and X.

     10.15. No Duties Imposed on Syndication Agents, Documentation Agents or
Arrangers. None of the Persons identified on the cover page to this Agreement,
the signature pages to this Agreement or otherwise in this Agreement as a
"Syndication Agent," "Documentation Agent" or "Arranger" shall have any right,
power, obligation, liability, responsibility or duty under this Agreement other
than, if such Person is a Lender, those applicable to all Lenders as such.
Without limiting the foregoing, none of the Persons identified on the cover page
to this Agreement, the signature pages to this Agreement or otherwise in this
Agreement as a "Syndication Agent," "Documentation Agent" or "Arranger" shall
have or be deemed to have any fiduciary duty to or fiduciary relationship with
any Holder of Obligations. Each of the Holders of Obligations acknowledges that
it has not relied, and will not rely, on any of the Persons so identified in
deciding to enter into this Agreement or in taking or not taking action
hereunder.

                                   ARTICLE XI

                            SETOFF; RATABLE PAYMENTS

     11.1.  Setoff. In addition to, and without limitation of, any rights of the
Lenders under applicable law, if any Borrower becomes insolvent, however
evidenced, or any other Default occurs and continues, any and all deposits
(including all account balances, whether provisional or final and whether or not
collected or available) and any other Indebtedness at any time held or owing by
any Lender or any Affiliate of any Lender to or for the credit or account of
such Borrower or any Subsidiary may be offset and applied toward the payment of
the Obligations owing to such Lender, whether or not the Obligations, or any
part thereof, shall then be due.

     11.2.  Ratable Payments. If any Lender, whether by setoff or otherwise, has
payment made to it upon its Outstanding Revolving Credit Exposure or its Term
Loans (other than payments received pursuant to Section 3.1, 3.2, 3.4 or 3.5) in
a greater proportion than that

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received by any other Lender, such Lender agrees, promptly upon demand, to
purchase a participation in the Aggregate Outstanding Revolving Credit Exposure
and Term Loans held by the other Lenders so that after such purchase each Lender
will hold its Pro Rata Share of the Aggregate Outstanding Revolving Credit
Exposure and outstanding principal balance of all Term Loans. If any Lender,
whether in connection with setoff or amounts which might be subject to setoff or
otherwise, receives collateral or other protection for its Obligations or such
amounts which may be subject to setoff, such Lender agrees, promptly upon
demand, to take such action necessary such that all Lenders share in the
benefits of such collateral ratably in proportion to their respective Pro Rata
Shares of the Aggregate Outstanding Revolving Credit Exposure and Term Loans. In
case any such payment is disturbed by legal process, or otherwise, appropriate
further adjustments shall be made.

                                   ARTICLE XII

                BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

     12.1.  Successors and Assigns; Designated Lenders.

            12.1.1   Successors and Assigns. The terms and provisions of the
     Loan Documents shall be binding upon and inure to the benefit of the
     Borrowers, the Agent and the Lenders and their respective successors and
     assigns permitted hereby, except that (i) no Borrower shall have any right
     to assign its rights or obligations under the Loan Documents without the
     prior written consent of each Lender, (ii) any assignment by any Lender
     must be made in compliance with Section 12.3, and (iii) any transfer by
     Participants must be made in compliance with Section 12.2. Any attempted
     assignment or transfer by any party not made in compliance with this
     Section 12.1 shall be null and void, unless such attempted assignment or
     transfer is treated as a participation in accordance with Section 12.3.2.
     The parties to this Agreement acknowledge that clause (ii) of this Section
     12.1 relates only to absolute assignments and this Section 12.1 does not
     prohibit assignments creating security interests, including, without
     limitation, (x) any pledge or assignment by any Lender of all or any
     portion of its rights under this Agreement and any Note to a Federal
     Reserve Bank, (y) in the case of a Lender which is a Fund, any pledge or
     assignment of all or any portion of its rights under this Agreement and any
     Note to its trustee in support of its obligations to its trustee or (z) any
     pledge or assignment by any Lender of all or any portion of its rights
     under this Agreement and any Note to direct or indirect contractual
     counterparties in credit derivative transactions relating to the Loans;
     provided, however, that no such pledge or assignment creating a security
     interest shall release the transferor Lender from its obligations hereunder
     unless and until the parties thereto have complied with the provisions of
     Section 12.3. The Agent may treat the Person which made any Loan or which
     holds any Note as the owner thereof for all purposes hereof unless and
     until such Person complies with Section 12.3; provided, however, that the
     Agent may in its discretion (but shall not be required to) follow
     instructions from the Person which made any Loan or which holds any Note to
     direct payments relating to such Loan or Note to another Person. Any
     assignee of the rights to any Loan or any Note agrees by acceptance of such
     assignment to be bound by all the terms and provisions of the Loan
     Documents. Any request, authority or consent of any Person, who at the time
     of making such request or giving such authority or consent is

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     the owner of the rights to any Loan (whether or not a Note has been issued
     in evidence thereof), shall be conclusive and binding on any subsequent
     holder or assignee of the rights to such Loan.

            12.1.2   Designated Lenders.

     (i)    Subject to the terms and conditions set forth in this Section
            12.1.2, any Lender may from time to time elect to designate an
            Eligible Designee to provide all or any part of the Loans to be made
            by such Lender pursuant to this Agreement; provided that the
            designation of an Eligible Designee by any Lender for purposes of
            this Section 12.1.2 shall be subject to the approval of the Agent
            (which consent shall not be unreasonably withheld or delayed). Upon
            the execution by the parties to each such designation of an
            agreement in the form of Exhibit F hereto (a "Designation
            Agreement") and the acceptance thereof by the Agent, the Eligible
            Designee shall become a Designated Lender for purposes of this
            Agreement. The Designating Lender shall thereafter have the right to
            permit the Designated Lender to provide all or a portion of the
            Loans to be made by the Designating Lender pursuant to the terms of
            this Agreement and the making of the Loans or portion thereof shall
            satisfy the obligations of the Designating Lender to the same
            extent, and as if, such Loan was made by the Designating Lender. As
            to any Loan made by it, each Designated Lender shall have all the
            rights a Lender making such Loan would have under this Agreement and
            otherwise; provided, (x) that all voting rights under this Agreement
            shall be exercised solely by the Designating Lender, (y) each
            Designating Lender shall remain solely responsible to the other
            parties hereto for its obligations under this Agreement, including
            the obligations of a Lender in respect of Loans made by its
            Designated Lender and (z) no Designated Lender shall be entitled to
            reimbursement under Article III hereof for any amount which would
            exceed the amount that would have been payable by the Borrowers to
            the Lender from which the Designated Lender obtained any interests
            hereunder. No additional Notes shall be required with respect to
            Loans provided by a Designated Lender; provided, however, to the
            extent any Designated Lender shall advance funds, the Designating
            Lender shall be deemed to hold the Notes in its possession as an
            agent for such Designated Lender to the extent of the Loan funded by
            such Designated Lender. Such Designating Lender shall act as
            administrative agent for its Designated Lender and give and receive
            notices and communications hereunder. Any payments for the account
            of any Designated Lender shall be paid to its Designating Lender as
            administrative agent for such Designated Lender and no Borrower nor
            the Agent shall be responsible for any Designating Lender's
            application of such payments. In addition, any Designated Lender may
            (1) with notice to, but without the consent of any Borrower or the
            Agent, assign all or portions of its interests in any Loans to its
            Designating Lender or to any financial institution consented to by
            the Agent providing liquidity and/or credit facilities to or for the
            account of such Designated Lender and (2) subject to advising any
            such Person that such information is to be treated as confidential
            in accordance with Section 9.11, disclose on a confidential basis
            any non-public information relating to its Loans to any rating
            agency, commercial paper dealer or

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            provider of any guarantee, surety or credit or liquidity enhancement
            to such Designated Lender.

     (ii)   Each party to this Agreement hereby agrees that it shall not
            institute against, or join any other Person in instituting against,
            any Designated Lender any bankruptcy, reorganization, arrangement,
            insolvency or liquidation proceeding or other proceedings under any
            federal or state bankruptcy or similar law for one year and a day
            after the payment in full of all outstanding senior indebtedness of
            any Designated Lender; provided that the Designating Lender for each
            Designated Lender hereby agrees to indemnify, save and hold harmless
            each other party hereto for any loss, cost, damage and expense
            arising out of its inability to institute any such proceeding
            against such Designated Lender. This Section 12.1.2 shall survive
            the termination of this Agreement.

     12.2.  Participations.

            12.2.1   Permitted Participants; Effect. Any Lender may at any time
     sell to one or more banks or other entities ("Participants") participating
     interests in any Outstanding Revolving Credit Exposure of such Lender, any
     Term Loans of such Lender, any Note held by such Lender, any Revolving Loan
     Commitment of such Lender or any other interest of such Lender under the
     Loan Documents. In the event of any such sale by a Lender of participating
     interests to a Participant, such Lender's obligations under the Loan
     Documents shall remain unchanged, such Lender shall remain solely
     responsible to the other parties hereto for the performance of such
     obligations, such Lender shall remain the owner of its Outstanding
     Revolving Credit Exposure and its Term Loans and the holder of any Note
     issued to it in evidence thereof for all purposes under the Loan Documents,
     all amounts payable by the Borrowers under this Agreement shall be
     determined as if such Lender had not sold such participating interests, and
     the Borrowers and the Agent shall continue to deal solely and directly with
     such Lender in connection with such Lender's rights and obligations under
     the Loan Documents.

            12.2.2   Voting Rights. Each Lender shall retain the sole right to
     approve, without the consent of any Participant, any amendment,
     modification or waiver of any provision of the Loan Documents other than
     any amendment, modification or waiver with respect to any Credit Extension
     or Revolving Loan Commitment in which such Participant has an interest
     which would require consent of all of the Lenders pursuant to the terms of
     Section 8.2.

            12.2.3   Benefit of Certain Provisions. Each Borrower agrees that
     each Participant shall be deemed to have the right of setoff provided in
     Section 11.1 in respect of its participating interest in amounts owing
     under the Loan Documents to the same extent as if the amount of its
     participating interest were owing directly to it as a Lender under the Loan
     Documents, provided that each Lender shall retain the right of setoff
     provided in Section 11.1 with respect to the amount of participating
     interests sold to each Participant. The Lenders agree to share with each
     Participant, and each Participant, by exercising the right of setoff
     provided in Section 11.1, agrees to share with each Lender, any amount
     received pursuant to the exercise of its right of setoff, such amounts to
     be shared in

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     accordance with Section 11.2 as if each Participant were a Lender. Each
     Borrower further agrees that each Participant shall be entitled to the
     benefits of Sections 3.1, 3.2, 3.4 and 3.5 to the same extent as if it were
     a Lender and had acquired its interest by assignment pursuant to Section
     12.3, provided that (i) a Participant shall not be entitled to receive any
     greater payment under Section 3.1, 3.2 or 3.5 than the Lender who sold the
     participating interest to such Participant would have received had it
     retained such interest for its own account, unless the sale of such
     interest to such Participant is made with the prior written consent of the
     Borrowers, and (ii) any Participant not incorporated under the laws of the
     United States of America or any State thereof agrees to comply with the
     provisions of Section 3.5 to the same extent as if it were a Lender.

     12.3.  Assignments.

            12.3.1   Permitted Assignments. Any Lender may at any time assign to
     one or more banks or other entities ("Purchasers") all or any part of its
     rights and obligations under the Loan Documents. Such assignment shall be
     evidenced by an agreement substantially in the form of Exhibit C or in such
     other form as may be agreed to by the parties thereto (each such agreement,
     an "Assignment Agreement"). Each such assignment with respect to a
     Purchaser which is not a Lender or an Affiliate of a Lender or an Approved
     Fund shall, unless otherwise consented to in writing by the Company, on
     behalf of the Borrowers, and the Agent, either be in an amount equal to the
     entire applicable Outstanding Revolving Credit Exposure and/or Term Loans,
     as applicable, of the assigning Lender or (unless each of the Agent and,
     prior to the occurrence and continuance of a Default, the Company, on
     behalf of the Borrowers, otherwise consents) be in an aggregate amount not
     less than $5,000,000. The amount of the assignment shall be based on the
     Outstanding Revolving Credit Exposure and/or Term Loans, as applicable,
     subject to the assignment, determined as of the date of such assignment or
     as of the "Trade Date," if the "Trade Date" is specified in the Assignment
     Agreement.

            12.3.2   Consents. The consent of the Company shall be required
     prior to an assignment becoming effective unless the Purchaser is a Lender,
     an Affiliate of a Lender or an Approved Fund (other than a Lender or
     Affiliate of a Lender or an Approved Fund that becomes a Lender solely by
     means of the settlement of a credit derivative), provided that the consent
     of the Company shall not be required if (i) a Default or Unmatured Default
     has occurred and is continuing or (ii) if such assignment is in connection
     with the physical settlement of any Lender's obligations to direct or
     indirect contractual counterparties in credit derivative transactions
     relating to the Loans; provided, that the assignment without the Company's
     consent pursuant to clause (ii) shall not increase the Borrowers' liability
     under Section 3.5. The consent of the Agent shall be required prior to an
     assignment becoming effective unless the Purchaser is a Lender, an
     Affiliate of a Lender or an Approved Fund (other than a Lender or Affiliate
     of a Lender or an Approved Fund that becomes a Lender solely by means of
     the settlement of a credit derivative). Any consent required under this
     Section 12.3.2 shall not be unreasonably withheld or delayed.

            12.3.3   Effect; Effective Date. Upon (i) delivery to the Agent of
     an Assignment Agreement, together with any consents required by Sections
     12.3.1 and 12.3.2, and (ii)

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     payment of a $3,500 fee to the Agent by the assigning Lender or the
     Purchaser for processing such assignment (unless such fee is waived by the
     Agent or unless such assignment is made to such assigning Lender's
     Affiliate), such assignment shall become effective on the effective date
     specified in such assignment. The Assignment Agreement shall contain a
     representation and warranty by the Purchaser to the effect that none of the
     funds, money, assets or other consideration used to make the purchase and
     assumption of the Revolving Loan Commitment and Outstanding Revolving
     Credit Exposure and/or Term Loans, as applicable, under the applicable
     Assignment Agreement constitutes "plan assets" as defined under ERISA and
     that the rights, benefits and interests of the Purchaser in and under the
     Loan Documents will not be "plan assets" under ERISA. On and after the
     effective date of such assignment, such Purchaser shall for all purposes be
     a Lender party to this Agreement and any other Loan Document executed by or
     on behalf of the Lenders and shall have all the rights, benefits and
     obligations of a Lender under the Loan Documents, to the same extent as if
     it were an original party thereto, and the transferor Lender shall be
     released with respect to the Revolving Loan Commitment and Outstanding
     Revolving Credit Exposure and/or Term Loans, as applicable, assigned to
     such Purchaser without any further consent or action by the Company, the
     Lenders or the Agent. In the case of an assignment covering all of the
     assigning Lender's rights, benefits and obligations under this Agreement,
     such Lender shall cease to be a Lender hereunder but shall continue to be
     entitled to the benefits of, and subject to, those provisions of this
     Agreement and the other Loan Documents which survive payment of the
     Obligations and termination of the Loan Documents. Any assignment or
     transfer by a Lender of rights or obligations under this Agreement that
     does not comply with this Section 12.3 shall be treated for purposes of
     this Agreement as a sale by such Lender of a participation in such rights
     and obligations in accordance with Section 12.2. Upon the consummation of
     any assignment to a Purchaser pursuant to this Section 12.3.3, the
     transferor Lender, the Agent and the Borrowers shall, if the transferor
     Lender or the Purchaser desires that its Loans be evidenced by Notes, make
     appropriate arrangements so that, upon cancellation and surrender to the
     Company of the Notes (if any) held by the transferor Lender, new Notes or,
     as appropriate, replacement Notes are issued to such transferor Lender, if
     applicable, and new Notes or, as appropriate, replacement Notes, are issued
     to such Purchaser, in each case in principal amounts reflecting their
     respective Revolving Loan Commitments (or, if the Revolving Loan
     Termination Date has occurred, their respective Outstanding Revolving
     Credit Exposure) or Term Loans, as applicable, as adjusted pursuant to such
     assignment.

            12.3.4   Register. The Agent, acting solely for this purpose as an
     agent of the Borrowers (and each Borrower hereby designates the Agent to
     act in such capacity), shall maintain at one of its offices in Chicago,
     Illinois a copy of each Assignment and Assumption delivered to it and a
     register (the "Register") for the recordation of the names and addresses of
     the Lenders, and the Revolving Loan Commitments of, and principal amounts
     of and interest on the Loans owing to, each Lender pursuant to the terms
     hereof from time to time and whether such Lender is an original Lender or
     assignee of another Lender pursuant to an assignment under this Section
     13.3. The entries in the Register shall be conclusive, and the Borrowers,
     the Agent and the Lenders may treat each Person whose name is recorded in
     the Register pursuant to the terms hereof as a Lender hereunder for all
     purposes of this Agreement, notwithstanding notice to the contrary. The

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     Register shall be available for inspection by any Borrower and any Lender,
     at any reasonable time and from time to time upon reasonable prior notice.

     12.4.  Dissemination of Information. Each Borrower authorizes each Lender
to disclose to any Participant or Purchaser or any other Person acquiring an
interest in the Loan Documents by operation of law (each a "Transferee") and any
prospective Transferee any and all information in such Lender's possession
concerning the creditworthiness of the Company and the Subsidiaries; provided
that each Transferee and prospective Transferee agrees to be bound by Section
9.11 of this Agreement.

     12.5.  Tax Certifications. If any interest in any Loan Document is
transferred to any Transferee which is not organized under the laws of the
United States or any State thereof, the transferor Lender shall cause such
Transferee, concurrently with the effectiveness of such transfer, to comply with
the provisions of Section 3.5(iv).

                                  ARTICLE XIII

                                     NOTICES

     13.1.  Notices; Effectiveness; Electronic Communication.

            13.1.1   Notices Generally. Except in the case of notices and other
     communications expressly permitted to be given by telephone (and except as
     provided in Section 13.1.2), all notices and other communications provided
     for herein shall be in writing and shall be delivered by hand or overnight
     courier service, mailed by certified or registered mail or sent by
     telecopier as follows:

     (i)    if to any Borrower, at the Company's address or telecopier number
            set forth on the signature page hereof;

     (ii)   if to the Agent or the Swing Line Lender or if the LC Issuer is Bank
            One, at its address or telecopier number set forth on the signature
            page hereof;

     (iii)  if to a Lender or to any LC Issuer other than Bank One, to it at its
            address (or telecopier number) set forth in its administrative
            questionnaire delivered to the Agent.

     Notices sent by hand or overnight courier service, or mailed by certified
     or registered mail, shall be deemed to have been given when received;
     notices sent by telecopier shall be deemed to have been given when sent
     (except that, if not given during normal business hours for the recipient,
     shall be deemed to have been given at the opening of business on the next
     Business Day for the recipient). Notices delivered through electronic
     communications to the extent provided in Section 13.1.2, shall be effective
     as provided in Section 13.1.2.

            13.1.2   Electronic Communications. Notices and other communications
     to the Lenders may be delivered or furnished by electronic communication
     (including e-mail and internet or intranet websites) pursuant to procedures
     approved by the Agent or as

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     otherwise determined by the Agent, provided that the foregoing shall not
     apply to notices to any Lender pursuant to Article II if such Lender has
     notified the Agent that it is incapable of receiving notices under such
     Article by electronic communication. The Agent or the Company, on behalf of
     each Borrower, may, in its respective discretion, agree to accept notices
     and other communications to it hereunder by electronic communications
     pursuant to procedures approved by it or as it otherwise determines,
     provided that such determination or approval may be limited to particular
     notices or communications.

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

     13.2.  Change of Address, Etc. Any party hereto may change its address or
telecopier number for notices and other communications hereunder by notice to
the other parties hereto.

                                   ARTICLE XIV

         COUNTERPARTS; INTEGRATION; EFFECTIVENESS; ELECTRONIC EXECUTION

     14.1.  Counterparts; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each
of which shall constitute an original, but all of which when taken together
shall constitute a single contract. Except as provided in Article IV, this
Agreement shall become effective when it shall have been executed by the Agent
and when the Agent shall have received counterparts hereof which, when taken
together, bear the signatures of each of the parties hereto, and thereafter
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns. Delivery of an executed counterpart of a
signature page of this Agreement by telecopy shall be effective as delivery of a
manually executed counterpart of this Agreement.

     14.2.  Electronic Execution of Assignments. The words "execution,"
"signed," "signature," and words of like import in any assignment and assumption
agreement shall be deemed to include electronic signatures or the keeping of
records in electronic form, each of which shall be of the same legal effect,
validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as
provided for in any applicable law, including the Federal Electronic Signatures
in Global and National Commerce Act, or any other state laws based on the
Uniform Electronic Transactions Act.

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<PAGE>

                                   ARTICLE XV

          CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

     15.1.  CHOICE OF LAW. THE LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A
CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS, INCLUDING 735 ILCS SECTION 105/5-1 ET SEQ.
BUT OTHERWISE WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS, OF THE STATE OF
ILLINOIS, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

     15.2.  CONSENT TO JURISDICTION. EACH BORROWER HEREBY IRREVOCABLY SUBMITS TO
THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR ILLINOIS STATE
COURT SITTING IN CHICAGO, ILLINOIS IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO ANY LOAN DOCUMENTS AND EACH BORROWER HEREBY IRREVOCABLY AGREES THAT
ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED
IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER
HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A
COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT
THE RIGHT OF THE AGENT, ANY LC ISSUER, ANY LENDER OR ANY HOLDER OF OBLIGATIONS
TO BRING PROCEEDINGS AGAINST ANY BORROWER IN THE COURTS OF ANY OTHER
JURISDICTION. ANY JUDICIAL PROCEEDING BY ANY BORROWER AGAINST THE AGENT, ANY LC
ISSUER, ANY LENDER OR HOLDER OF OBLIGATIONS OR ANY AFFILIATE OF THE AGENT, ANY
LC ISSUER, ANY LENDER OR HOLDER OF OBLIGATIONS INVOLVING, DIRECTLY OR
INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH
ANY LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT SITTING IN CHICAGO, ILLINOIS.

     15.3.  WAIVER OF JURY TRIAL. EACH BORROWER, THE AGENT, EACH LC ISSUER, EACH
LENDER AND EACH HOLDER OF OBLIGATIONS HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL
PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN
TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED
WITH ANY LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER.

                                   ARTICLE XVI

                             CO-BORROWER PROVISIONS

     16.1.  Appointment. Each of the Borrowers hereby irrevocably designates,
appoints and authorizes each other Borrower as its agent and attorney-in-fact to
take actions under this Agreement and the other Loan Documents, together with
such powers as are reasonably

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<PAGE>

incidental thereto. The Agent and the Lenders shall be entitled to rely, and
shall be fully protected in relying, upon any communication from or to any
Borrower as having been delivered by or to all Borrowers. Any action taken by
one Borrower under this Agreement and the other Loan Documents shall be binding
upon each other Borrower. Each Borrower agrees that it is jointly and severally
liable to the Agent and the Lenders for the payment of (i) the Obligations and
(ii) all Rate Management Obligations owing to any Holder of Obligations
(collectively, the "Co-Borrower Obligations") and that such liability is
independent of the Obligations and Rate Management Obligations of each other
Borrower and whether such Obligations and/or Rate Management Obligations become
unenforceable against any other Borrower.

     16.2.  Separate Actions. A separate action or actions may be brought and
prosecuted against any Borrower whether such action is brought against any other
Borrower or whether any other Borrower is joined in such action or actions. Each
Borrower authorizes the Agent and the Lenders to release the other Borrowers
without in any manner or to any extent affecting the liability of such Borrower
hereunder or under the Loan Documents. Each Borrower waives any defense arising
by reason of any disability or other defense of any other Borrower, or the
cessation for any reason whatsoever of the liability of any other Borrower with
respect to any of the Co-Borrower Obligations, or any claim that such Borrower's
liability hereunder exceeds or is more burdensome than the liability of any
other Borrower.

     16.3.  Co-Borrower Obligations Absolute and Unconditional. Each Borrower
hereby agrees that its Co-Borrower Obligations hereunder and under the Loan
Documents shall be unconditional, irrespective of:

            (a)  the validity, enforceability, avoidance or subordination of any
of the Co-Borrower Obligations or any of the Loan Documents as to any other
Borrower;

            (b)  the absence of any attempt by, or on behalf of, the Agent or
any Lender to collect, or to take any other action to enforce, all or any part
of the Co-Borrower Obligations whether from or against any other Borrower or any
other Person liable for such Co-Borrower Obligations;

            (c)  the election of any remedy available under the Loan Documents
or applicable law by, or on behalf of, the Agent or any Lender with respect to
all or any part of the Co-Borrower Obligations;

            (d)  the waiver, consent, extension, forbearance or granting of any
indulgence by, or on behalf of, the Agent or any Lender with respect to any
provision of any of the Loan Documents;

            (e)  the failure of the Agent or any Lender to take any steps to
perfect and maintain its security interest in, or to preserve its rights to, any
security or collateral for the Co-Borrower Obligations;

            (f)  the election by, or on behalf of, the Agent or any Lender, in
any proceeding described in Section 8.01(f), involving any other Borrower of any
right which is comparable to the rights set forth in Section 1111(b)(2) of the
Bankruptcy Code;

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<PAGE>

            (g)  any borrowing or grant of a security interest by any other
Borrower or any receiver or assignee following the occurrence of any event
described in Section 8.01(f), pursuant to any provision of applicable law
comparable to Section 364 of the Bankruptcy Code;

            (h)  the disallowance, under any provision of applicable law
comparable to Section 502 of the Bankruptcy Code, of all or any portion of the
claims against any other Borrower held by any Lender or any Agent, for repayment
of all or any part of the Co-Borrower Obligations;

            (i)  the insolvency of any other Borrower; and

            (j)  any other circumstance which might otherwise constitute a legal
or equitable discharge or defense of such Borrower (other than payment in full
in cash of the Co-Borrower Obligations and the termination of the Commitments).

     16.4.  Waivers and Acknowledgements.

            16.4.1   Except as otherwise expressly provided under any provision
     of the Loan Documents or as required by any mandatory provision of
     applicable law, each Borrower hereby waives diligence, presentment, demand
     of payment, filing of claims with a court in the event of receivership,
     insolvency or bankruptcy of any Borrower or any other Person, protest or
     notice with respect to the Co-Borrower Obligations, all setoffs and
     counterclaims and all presentments, demands for performance, notices of
     nonperformance, protests, notices of protest, notices of dishonor and
     notices of acceptance of this Agreement and the other Loan Documents, the
     benefits of all statutes of limitation, and all other demands whatsoever
     (and shall not require that the same be made on any other Borrower as a
     condition precedent to such other Borrower's Co-Borrower Obligations
     hereunder), and covenants that this Agreement (and the joint and several
     liability of each Borrower under Section 11.01) will not be discharged,
     except by payment in full in cash of the Co-Borrower Obligations and the
     termination of the Commitments. Each Borrower further waives all notices of
     the existence, creation or incurrence of new or additional Indebtedness,
     arising either from additional loans extended to any other Borrower or
     otherwise, and also waives all notices that the principal amount, or any
     portion thereof, and/or any interest on any instrument or document
     evidencing all or any part of the Co-Borrower Obligations is due, notices
     of any and all proceedings to collect from the maker, any endorser or any
     other guarantor of all or any part of the Co-Borrower Obligations, or from
     any other Person, and, to the extent permitted by law, notices of exchange,
     sale, surrender or other handling of any security or collateral given to
     the Agent or any Lender to secure payment of all or any part of the
     Co-Borrower Obligations.

            16.4.2   The Agent and/or the Lenders are hereby authorized, without
     notice or demand and without affecting the liability of the Borrowers
     hereunder, from time to time, (i) to accept partial payments on all or any
     part of the Co-Borrower Obligations; (ii) to take and hold security or
     collateral for the payment of all or any part of the Co-Borrower
     Obligations, this Agreement, or any other guaranties of all or any part of
     the Co-Borrower Obligations or other liabilities of the Borrowers, and
     (iii) to settle, release,

                                       89

<PAGE>

     exchange, enforce, waive, compromise or collect or otherwise liquidate all
     or any part of the Co-Borrower Obligations, this Agreement, any guaranty of
     all or any part of the Co-Borrower Obligations, and any security or
     collateral for the Co-Borrower Obligations or for any such guaranty,
     irrespective of the effect on the contribution or subrogation rights of the
     Borrowers. Any of the foregoing may be done in any manner, without
     affecting or impairing the obligations of each Borrower hereunder.

     16.5.  Contribution Among Borrowers. The Borrowers agree as between
themselves and without limiting any liability of any Borrower hereunder to the
Agent or the Lenders, that to the extent any payment of the Co-Borrower
Obligations of the Borrowers is required to be made under this Agreement, to the
extent that any Borrower shall make a payment under this Agreement (a "Borrower
Payment") which, taking into account all other Borrower Payments then previously
or concurrently made by any other Borrower, exceeds the amount which otherwise
would have been paid by or attributable to such Borrower if each Borrower had
paid the aggregate Co-Borrower Obligations satisfied by such Borrower Payment in
the same proportion as such Borrower's "Allocable Amount" (as defined below) (as
determined immediately prior to such Borrower Payment) bore to the aggregate
Allocable Amounts of each of the Borrowers as determined immediately prior to
the making of such Borrower Payment, then, following payment in full in cash of
the Co-Borrower Obligations, such Borrower shall be entitled to receive
contribution and indemnification payments from, and be reimbursed by, each other
Borrower for the amount of such excess, pro rata based upon their respective
Allocable Amounts in effect immediately prior to such Borrower Payment. As of
any date of determination, the "Allocable Amount" of any Borrower shall be equal
to the maximum amount of the claim which could then be recovered from such
Borrower under this Agreement without rendering such claim voidable or avoidable
under Section 548 of Chapter 11 of the Bankruptcy Code or under any applicable
state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or
similar statute or common law.

     16.6.  Subrogation. Until the Co-Borrower Obligations shall have been paid
in full in cash and the Commitments shall have been terminated, each Borrower
hereby agrees that it (i) shall have no right of subrogation with respect to
such Co-Borrower Obligations (under contract, Section 509 of the Bankruptcy Code
or any comparable provision of any other applicable law, or otherwise) or any
other right of indemnity, reimbursement or contribution, and (ii) hereby waives
any right to enforce any remedy which the Agent or any Lender may now have or
may hereafter have against any other Borrower, any endorser or any other
Guarantor of all or any part of the Co-Borrower Obligations or any other Person,
and each Borrower hereby waives any benefit of, and any right to participate in,
any security or collateral given to the Agent and the Lenders to secure the
payment or performance of all or any part of the Co-Borrower Obligations or any
other liability of any other Borrower to the Agent and the Lenders.

     16.7.  Subordination. Each Borrower agrees that any and all claims of such
Borrower against the other Borrowers, the Guarantors or any endorser or other
guarantor of all or any part of the Co-Borrower Obligations, or against any of
their respective properties, shall be subordinated to all of the Co-Borrower
Obligations. Notwithstanding any right of any Borrower to ask for, demand, sue
for, take or receive any payment from any other Borrower, all rights and Liens
of such Borrower, whether now or hereafter arising and howsoever existing, in
any assets of such other Borrower (whether constituting part of any collateral
or otherwise) shall be and

                                       90

<PAGE>

hereby are subordinated to the rights of the Agent or the Lenders in those
assets. Such Borrower shall have no right to possession of any such asset or to
foreclose upon any such asset, whether by judicial action or otherwise, unless
and until all of the Co-Borrower Obligations shall have been paid in full in
cash and the Commitments shall have been terminated. If all or any part of the
assets of any Borrower, or the proceeds thereof, are subject to any
distribution, division or application to the creditors of such Borrower, whether
partial or complete, voluntary or involuntary, and whether by reason of
liquidation, bankruptcy, arrangement, receivership, assignment for the benefit
of creditors or any other action or proceeding, or if the business of any
Borrower is dissolved or if substantially all of the assets of any Borrower are
sold, then, and in any such event, any payment or distribution of any kind or
character, either in cash, securities or other property, which shall be payable
or deliverable upon or with respect to any Indebtedness of any Borrower to any
other Borrower ("Inter-Borrower Debt") shall be paid or delivered directly to
the Agent for application to the Co-Borrower Obligations, due or to become due,
until such Co-Borrower Obligations shall have been paid in full in cash. Each
Borrower irrevocably authorizes and empowers the Agent and each of the Lenders
to demand, sue for, collect and receive every such payment or distribution and
give acquittance therefor and to make and present for and on behalf of such
Borrower such proofs of claim and take such other action, in the Agent's or such
Lender's own name or in the name of such Borrower or otherwise, as the Agent or
any Lender may deem reasonably necessary or reasonably advisable for the
enforcement of this Agreement. After the occurrence and during the continuance
of a Default or an Unmatured Default, each Lender may vote, with respect to the
Co-Borrower Obligations owed to it, such proofs of claim in any such proceeding,
receive and collect any and all dividends or other payments or disbursements
made thereon in whatever form the same may be paid or issued and apply the same
on account of any of the Co-Borrower Obligations. Except as permitted under
Sections 7.02(d) and (e), should any payment, distribution, security or
instrument or proceeds thereof be received by any Borrower upon or with respect
to the Inter-Borrower Debt prior to the payment in full in cash of all of the
Co-Borrower Obligations and the termination of the Commitments, such Borrower
shall receive and hold the same in trust, as trustee, for the benefit of the
Agent and the Lenders and shall forthwith deliver the same to the Agent in
precisely the form received (accompanied by the endorsement or assignment of
such Borrower where necessary), for application to the Co-Borrower Obligations,
due or not due, and, until so delivered, the same shall be held in trust by such
Borrower as the property of the Agent and the Lenders. After the occurrence and
during the continuance of a Default or an Unmatured Default, if any Borrower
fails to make any such endorsement or assignment to the Agent or the Lenders,
the Agent or the Lenders (or any of their respective officers or employees) are
hereby irrevocably authorized to make the same. Each Borrower agrees that until
the Co-Borrower Obligations have been paid in full in cash and the Commitments
have been terminated, such Borrower will not assign or transfer to any Person
any claim such Borrower has or may have against any other Borrower (other than
in favor of the Agent pursuant to the Loan Documents).

                The remainder of this page is intentionally blank

                                       91

<PAGE>

     IN WITNESS WHEREOF, the initial Borrowers, the Lenders, the LC Issuers and
the Agent have executed this Agreement as of the date first above written.

                                        PATTERSON DENTAL COMPANY,
                                        as a Borrower

                                        By: /s/ R. Stephen Armstrong
                                        Print Name: R. Stephen Armstrong
                                        Title: Executive Vice President,
                                               Chief Financial Officer
                                               and Treasurer
                                               1031 Mendota Heights Road
                                               St. Paul, MN 55120

                                        Attention: R. Stephen Armstrong
                                               Executive Vice President,
                                               Chief Financial Officer,
                                               and Treasurer
                                        Telephone: (651) 686-1769
                                        FAX: (651) 686-8984

                               SIGNATURE PAGE TO
                   PATTERSON DENTAL COMPANY CREDIT AGREEMENT

<PAGE>

                                        ABILITYONE CORPORATION,
                                        as a Borrower

                                        By: /s/ R. Stephen Armstrong
                                        Print Name: R. Stephen Armstrong
                                        Title: Vice President and Treasurer
                                               1031 Mendota Heights Road
                                               St. Paul, MN 55120

                                        Attention: R. Stephen Armstrong
                                               Vice President and Treasurer
                                        Telephone: (651) 686-1769
                                        FAX: (651) 686-8984

                               SIGNATURE PAGE TO
                   PATTERSON DENTAL COMPANY CREDIT AGREEMENT

<PAGE>

                                        ABILITYONE PRODUCTS CORP.,
                                        as a Borrower

                                        By: /s/ R. Stephen Armstrong
                                        Print Name: R. Stephen Armstrong
                                        Title: Vice President and Treasurer
                                               1031 Mendota Heights Road
                                               St. Paul, MN 55120

                                        Attention: R. Stephen Armstrong
                                               Vice President and Treasurer
                                        Telephone: (651) 686-1769
                                        FAX: (651) 686-8984

                               SIGNATURE PAGE TO
                   PATTERSON DENTAL COMPANY CREDIT AGREEMENT

<PAGE>

                                        PATTERSON DENTAL SUPPLY, INC.,
                                        as a Borrower

                                        By: /s/ R. Stephen Armstrong
                                        Print Name: R. Stephen Armstrong
                                        Title: Vice President and Treasurer
                                               1031 Mendota Heights Road
                                               St. Paul, MN 55120

                                        Attention: R. Stephen Armstrong
                                               Vice President and Treasurer
                                        Telephone: (651) 686-1769
                                        FAX: (651) 686-8984

                               SIGNATURE PAGE TO
                   PATTERSON DENTAL COMPANY CREDIT AGREEMENT

<PAGE>

                                        WEBSTER VETERINARY SUPPLY, INC.,
                                        as a Borrower

                                        By: /s/ R. Stephen Armstrong
                                        Print Name: R. Stephen Armstrong
                                        Title: Vice President and Treasurer
                                               1031 Mendota Heights Road
                                               St. Paul, MN 55120

                                        Attention: R. Stephen Armstrong
                                               Vice President and Treasurer
                                        Telephone: (651) 686-1769
                                        FAX: (651) 686-8984

                               SIGNATURE PAGE TO
                   PATTERSON DENTAL COMPANY CREDIT AGREEMENT

<PAGE>

                                        WEBSTER MANAGEMENT, LP,
                                        as a Borrower

                                        By: WEBSTER VETERINARY SUPPLY, INC.
                                        Its General Partner

                                        By: /s/ R. Stephen Armstrong
                                        Print Name: R. Stephen Armstrong
                                        Title: Vice President and Treasurer
                                               1031 Mendota Heights Road
                                               St. Paul, MN 55120

                                        Attention: R. Stephen Armstrong
                                               Vice President and Treasurer
                                        Telephone: (651) 686-1769
                                        FAX: (651) 686-8984

                               SIGNATURE PAGE TO
                   PATTERSON DENTAL COMPANY CREDIT AGREEMENT

<PAGE>

                                        BANK ONE, NA (MAIN BRANCH CHICAGO),
                                        individually, as an LC Issuer and the
                                        Swing Line Lender, and as
                                        Administrative Agent

                                        By: /s/ Anthony F. Maggiore
                                        Print Name: Anthony F. Maggiore
                                        Title: Director, Capital Markets
                                               Bank One, NA
                                               111 E. Wisconsin Avenue, WI1-2042
                                               Milwaukee, Wisconsin 53202

                                        Attention: Anthony F. Maggiore
                                               Telephone: (414) 765 - 3111
                                               FAX: (414) 765 - 2625

                               SIGNATURE PAGE TO
                   PATTERSON DENTAL COMPANY CREDIT AGREEMENT

<PAGE>

                                        BANK OF AMERICA, N.A.,
                                        individually, as a Lender and as
                                        Syndication Agent

                                        By: /s/ Philip S. Durand
                                        Print Name: Philip S. Durand
                                        Title: Managing Director
                                               100 North Tryon Street,
                                               NC1-007-17-11 Charlotte,
                                               North Carolina 28202

                                        Attention: Jeanie Del Sordo
                                               Telephone: (704) 388-5954
                                               FAX: (704) 409-0606

                               SIGNATURE PAGE TO
                   PATTERSON DENTAL COMPANY CREDIT AGREEMENT

<PAGE>

                                        HARRIS TRUST & SAVINGS BANK,
                                        as a Lender

                                        By: /s/ Michael Pincus
                                        Print Name: Michael Pincus
                                        Title: Managing Director
                                               111 West Monroe Street,
                                               20/th/ Floor East
                                               Chicago, Illinois 60603

                                        Attention: Todd Kostelnik
                                               Telephone: (312) 461-3139
                                               FAX: (312) 461-7365

                               SIGNATURE PAGE TO
                   PATTERSON DENTAL COMPANY CREDIT AGREEMENT

<PAGE>

                                        KEY BANK NATIONAL ASSOCIATION,
                                        as a Lender

                                        By: /s/ Christopher Swindell
                                        Print Name: Christopher Swindell
                                        Title: Senior Vice President
                                               1211 SW Fifth Avenue, Suite 400
                                               Portland, Oregon 97201

                                        Attention: Christopher Swindell
                                               Telephone: (503) 790-7570
                                               FAX: (503) 790-7574

                               SIGNATURE PAGE TO
                   PATTERSON DENTAL COMPANY CREDIT AGREEMENT

<PAGE>

                                        NATIONAL CITY BANK OF MICHIGAN/ILLINOIS,
                                        as a Lender

                                        By: /s/ Elizabeth G. Brandt
                                        Print Name: Elizabeth G. Brandt
                                        Title: Vice President
                                               One North Franklin, Suite 3600
                                               Chicago, Illinois 60606

                                        Attention: Elizabeth G. Brandt
                                               Telephone: (312) 384-4653
                                               FAX: (312) 384-4666

                               SIGNATURE PAGE TO
                   PATTERSON DENTAL COMPANY CREDIT AGREEMENT

<PAGE>

                                        PNC BANK, NATIONAL ASSOCIATION,
                                        as a Lender

                                        By: /s/ Philip K. Liebscher
                                        Print Name: Philip K. Liebscher
                                        Title: Vice President
                                               249 Fifth Avenue, P1-POPP-2-3
                                               Pittsburgh, Pennsylvania
                                               15222-2707

                                        Attention: Philip K. Liebscher
                                               Telephone: (412) 762-3202
                                               FAX: (412) 762-6484

                               SIGNATURE PAGE TO
                   PATTERSON DENTAL COMPANY CREDIT AGREEMENT

<PAGE>

                                        SUNTRUST BANK,
                                        as a Documentation Agent and as a Lender

                                        By: /s/ W. Brooks Hubbard
                                        Print Name: W. Brooks Hubbard
                                        Title: Director
                                               Mail Code NA1907
                                               201 4/th/ Avenue North,
                                               3/rd/ Floor
                                               Nashville, Tennessee 37219

                                        Attention: W. Brooks Hubbard
                                               Telephone: (615) 748-4465
                                               FAX: (615) 748-5117

                               SIGNATURE PAGE TO
                   PATTERSON DENTAL COMPANY CREDIT AGREEMENT

<PAGE>

                                        THE BANK OF TOKYO-MITSUBISHI, LTD.,
                                        CHICAGO BRANCH,
                                        as a Lender

                                        By: /s/ Patrick McCue
                                        Print Name: Patrick McCue
                                        Title: Vice President & Manager
                                               601 Carlson Parkway, Suite 370
                                               Minnetonka, Minnesota 55305

                                        Attention: Patrick McCue
                                               Telephone: (952) 473-6110
                                               FAX: (952) 473-5152

                               SIGNATURE PAGE TO
                   PATTERSON DENTAL COMPANY CREDIT AGREEMENT

<PAGE>

                                        THE NORTHERN TRUST COMPANY,
                                        as a Documentation Agent and as a Lender

                                        By:  /s/ John C. Canty
                                        Print Name: John C. Canty
                                        Title: Vice President
                                               50 South LaSalle, Suite B2
                                               Chicago, Illinois 60675

                                        Attention: John C. Canty
                                               Telephone: (312) 444-7729
                                               FAX: (312) 444-7028

                                SIGNATURE PAGE TO
                    PATTERSON DENTAL COMPANY CREDIT AGREEMENT

<PAGE>

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

                                        By:  /s/ Christine Davis
                                        Print Name: Christine Davis
                                        Title: Vice President
                                               445 S. Figueroa St., G16-110
                                               Los Angeles, California 90071

                                        Attention: Matthew Krajniak (credit
                                                   contact)
                                               Telephone: (213) 236-6491
                                               FAX: (213) 236-7636

                                        Attention: Shirley Davis (operations
                                                   contact)
                                               Telephone: (323) 720-2682
                                               FAX: (323) 720-2252/51

                                SIGNATURE PAGE TO
                    PATTERSON DENTAL COMPANY CREDIT AGREEMENT

<PAGE>

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as a Documentation Agent and as a Lender

                                        By:  /s/ Karen E. Weathers
                                        Print Name: Karen E. Weathers
                                        Title: Vice President
                                               U.S. Bancorp Center
                                               BC-MN-H03N
                                               800 Nicollet Mall, 15/th/ Floor
                                               Minneapolis, MN 55420
                                        Attention:
                                               Telephone: (612) 303-3764
                                               FAX: (612) 303-2265

                                SIGNATURE PAGE TO
                   PATTERSON DENTAL COMPANY CREDIT AGREEMENT

<PAGE>

                                        WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                        as a Lender

                                        By:  /s/ Scott D. Bjelde
                                        Print Name: Scott D. Bjelde
                                        Title: VP & Senior Banker

                                        By:  /s/ Jennifer D. Barrett
                                        Print Name: Jennifer D. Barrett
                                        Title: VP & Loan Team Member

                                               Wells Fargo Bank
                                               MAC N 9305-031
                                               Sixth and Marquette
                                               Minneapolis MN 55479
                                        Attention:  Scott D. Bjelde
                                               Telephone: (612) 667-6126
                                               FAX: (612) 667-2276

                                SIGNATURE PAGE TO
                    PATTERSON DENTAL COMPANY CREDIT AGREEMENT

<PAGE>

                               COMMITMENT SCHEDULE

                           Revolving Loan Commitments

                                               Amount of        % of Aggregate
                                               Revolving          Revolving
Lender                                       Loan Commitment    Loan Commitment
----------------------------------------    ----------------    ---------------
Bank One, NA (Main Office Chicago)          $  23,333,333.35      11.666,666,66%
Bank of America, N.A.                       $  23,333,333.34      11.666,666,65%
Harris Trust & Savings Bank                 $  13,333,333.33       6.666,666,67%
Key Bank National Association               $  13,333,333.33       6.666,666,67%
National City Bank of Michigan/Illinois     $  13,333,333.33       6.666,666,67%
PNC Bank, National Association              $  13,333,333.33       6.666,666,67%
SunTrust Bank                               $  20,000,000.00      10.000,000,00%
The Bank of Tokyo-Mitsubishi, Ltd.,
Chicago Branch                              $  13,333,333.33       6.666,666,67%
The Northern Trust Company                  $  20,000,000.00      10.000,000,00%
Union Bank of California, N.A.              $  13,333,333.33       6.666,666,67%
U.S. Bank National Association              $  20,000,000.00      10.000,000,00%
Wells Fargo Bank, National Association      $  13,333,333.33       6.666,666,67%
-------------------------------------------------------------------------------
TOTAL                                       $ 200,000,000.00                100%

<PAGE>

                              Term Loan Commitments

                                                                % of Aggregate
                                             Amount of Term       Term Loan
Lender                                      Loan Commitment       Commitment
----------------------------------------    ----------------    ---------------
Bank One, NA (Main Office Chicago)          $  11,666,666.65      11.666,666,65%
Bank of America, N.A.                       $  11,666,666.66      11.666,666,66%
Harris Trust & Savings Bank                 $   6,666,666.67       6.666,666,67%
Key Bank National Association               $   6,666,666.67       6.666,666,67%
National City Bank of Michigan/Illinois     $   6,666,666.67       6.666,666,67%
PNC Bank, National Association              $   6,666,666.67       6.666,666,67%
SunTrust Bank                               $  10,000,000.00      10.000,000,00%
The Bank of Tokyo-Mitsubishi, Ltd.,
Chicago Branch                              $   6,666,666.67       6.666,666,67%
The Northern Trust Company                  $  10,000,000.00      10.000,000,00%
Union Bank of California, N.A.              $   6,666,666.67       6.666,666,67%
U.S. Bank National Association              $  10,000,000.00      10.000,000,00%
Wells Fargo Bank, National Association      $   6,666,666.67       6.666,666,67%
-------------------------------------------------------------------------------
TOTAL:                                      $ 100,000,000.00                100%

<PAGE>

                                PRICING SCHEDULE

====================================================================
Applicable           Level I     Level II     Level III     Level IV
Margin               Status      Status       Status        Status
--------------------------------------------------------------------
Eurocurrency Rate      0.625%       0.750%        1.000%       1.375%
--------------------------------------------------------------------
Floating Rate           0.00%        0.00%         0.00%        0.00%
====================================================================

====================================================================
Applicable Fee       Level I     Level II     Level III     Level IV
Rate                 Status      Status       Status        Status
--------------------------------------------------------------------
Commitment Fee         0.175%       0.200%        0.250%       0.300%
--------------------------------------------------------------------

====================================================================

          The Applicable Margin and Applicable Fee Rate shall be determined
based upon Level III until the delivery of the Financials for the fiscal period
ending October 25, 2003.

     For the purposes of this Schedule, the following terms have the following
meanings, subject to the final paragraph of this Schedule:

     "Financials" means the annual or quarterly financial statements of the
Company delivered pursuant to Section 6.1.1 or 6.1.2.

     "Level I Status" exists at any date if, as of the last day of the fiscal
quarter of the Company referred to in the most recent Financials, the Leverage
Ratio is less than or equal to 2.00 to 1.00.

     "Level II Status" exists at any date if, as of the last day of the fiscal
quarter of the Company referred to in the most recent Financials, (i) the
Company has not qualified for Level I Status and (ii) the Leverage Ratio is less
than or equal to 2.50 to 1.00.

     "Level III Status" exists at any date if, as of the last day of the fiscal
quarter of the Company referred to in the most recent Financials, (i) the
Company has not qualified for Level I Status or Level II Status and (ii) the
Leverage Ratio is less than or equal to 3.00 to 1.00.

     "Level IV Status" exists at any date if the Company has not qualified for
Level I Status, Level II Status or Level III Status.

     "Status" means Level I Status, Level II Status, Level III Status or Level
IV Status.

The Applicable Margin and Applicable Fee Rate shall be determined in accordance
with the foregoing table based on the Company's Status as reflected in the then
most recent Financials. Adjustments, if any, to the Applicable Margin or
Applicable Fee Rate shall be effective five Business Days after the Agent has
received the applicable Financials. If the Company fails to

<PAGE>

deliver the Financials to the Agent at the time required pursuant to Section
6.1, then the Applicable Margin and Applicable Fee Rate shall be the highest
Applicable Margin and Applicable Fee Rate set forth in the foregoing table until
five days after such Financials are so delivered.

<PAGE>

                                   EXHIBIT E-1

                             FORM OF TERM LOAN NOTE

                                                               ________ __, 20__

     PATTERSON DENTAL COMPANY, a Minnesota corporation, ABILITYONE CORPORATION,
a Michigan corporation, ABILITYONE PRODUCTS CORP., a Delaware corporation,
PATTERSON DENTAL SUPPLY, INC., a Minnesota corporation, WEBSTER VETERINARY
SUPPLY, INC., a Minnesota corporation and WEBSTER MANAGEMENT, LP, a Minnesota
limited partnership (the "Borrowers"), jointly and severally, promise to pay to
the order of [LENDER] or its registered assigns (the "Lender") the aggregate
unpaid principal amount of the Term Loan made by the Lender to the Borrowers
pursuant to Article II of the Agreement (as hereinafter defined), in immediately
available funds at the main office of Bank One, NA in Chicago, Illinois, as
Administrative Agent (the "Agent"), together with interest on the unpaid
principal amount hereof at the rates and on the dates set forth in the
Agreement. The Borrowers shall pay, in Dollars, the principal of and accrued and
unpaid interest on the Term Loan in full on the Term Loan Maturity Date. The
principal indebtedness evidenced hereby shall be payable in installments as set
forth in Section 2.1 of the Agreement with a final installment payable on the
Term Loan Maturity Date.

     The Lender shall, and is hereby authorized to, record on the schedule
attached hereto, or to otherwise record in accordance with its usual practice,
the date and amount of the Term Loan and the date and amount of each principal
payment hereunder.

     This Note is one of the Notes issued pursuant to, and is entitled to the
benefits of, the Credit Agreement, dated as of November 25, 2003 (which, as it
may be amended, restated, supplemented or otherwise modified and in effect from
time to time, is herein called the "Agreement"), among the Borrowers, the
Lenders, and the Agent, to which Agreement reference is hereby made for a
statement of the terms and conditions governing this Note, including the terms
and conditions under which this Note may be prepaid or its maturity date
accelerated. [This Note is guaranteed pursuant to the Guaranty, as more
specifically described in the Agreement, and reference is made thereto for a
statement of the terms and provisions thereof.] Capitalized terms used herein
and not otherwise defined herein are used with the meanings attributed to them
in the Agreement.

          This Note shall be governed by, and construed in accordance with, the
internal law, including 735 ILCS Sections 105/5-1 et seq. but otherwise without
regard to the conflict of law provisions, of the State of Illinois, but giving
effect to federal laws applicable to national banks.

<PAGE>

                                        PATTERSON DENTAL COMPANY

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        ABILITYONE CORPORATION

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        ABILITYONE PRODUCTS CORP.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        PATTERSON DENTAL SUPPLY, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        WEBSTER VETERINARY SUPPLY, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        WEBSTER MANAGEMENT, LP,
                                        By WEBSTER VETERINARY SUPPLY, INC.
                                        Its General Manager

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

<PAGE>

                SCHEDULE OF TERM LOANS AND PAYMENTS OF PRINCIPAL
                                       TO
                             NOTE OF THE BORROWERS,
                               DATED [DATE], 20__

          Principal     Maturity      Principal
          Amount of    of Interest     Amount       Unpaid
Date      Term Loan      Period         Paid       Balance
----------------------------------------------------------

<PAGE>

                                   EXHIBIT E-2

                           FORM OF REVOLVING LOAN NOTE

                                                               ________ __, 20__

     PATTERSON DENTAL COMPANY, a Minnesota corporation, ABILITYONE CORPORATION,
a Michigan corporation, ABILITYONE PRODUCTS CORP., a Delaware corporation,
PATTERSON DENTAL SUPPLY, INC., a Minnesota corporation, WEBSTER VETERINARY
SUPPLY, INC., a Minnesota corporation and WEBSTER MANAGEMENT, LP, a Minnesota
limited partnership (the "Borrowers"), jointly and severally, promise to pay to
the order of [LENDER] or its registered assigns (the "Lender") the aggregate
unpaid principal amount of all Revolving Loans made by the Lender to the
Borrowers pursuant to Article II of the Agreement (as hereinafter defined), in
immediately available funds at the place specified pursuant to Article II of the
Agreement, together with interest on the unpaid principal amount hereof at the
rates and on the dates set forth in the Agreement. The Borrowers shall pay, in
the applicable Agreed Currency, the principal of and accrued and unpaid interest
on the Revolving Loans in full on the Revolving Loan Termination Date and shall
make such mandatory payments as are required to be made under the terms of
Article II of the Agreement.

     The Lender shall, and is hereby authorized to, record on the schedule
attached hereto, or to otherwise record in accordance with its usual practice,
the date, currency, amount, and Interest Period, in the case of Eurocurrency
Rate Loans, of each Revolving Loan and the date, currency and amount of each
principal payment hereunder.

     This Note is one of the Notes issued pursuant to, and is entitled to the
benefits of, the Credit Agreement, dated as of November 25, 2003 (which, as it
may be amended, restated, supplemented or otherwise modified and in effect from
time to time, is herein called the "Agreement"), among the Borrowers, the
Lenders, and Bank One, NA (Main Office Chicago) as Administrative Agent (the
"Agent"), to which Agreement reference is hereby made for a statement of the
terms and conditions governing this Note, including the terms and conditions
under which this Note may be prepaid or its maturity date accelerated. [This
Note is guaranteed pursuant to the Guaranty, as more specifically described in
the Agreement, and reference is made thereto for a statement of the terms and
provisions thereof.] Capitalized terms used herein and not otherwise defined
herein are used with the meanings attributed to them in the Agreement.

          This Note shall be governed by, and construed in accordance with, the
internal law, including 735 ILCS Sections 105/5-1 et seq. but otherwise without
regard to the conflict of law provisions, of the State of Illinois, but giving
effect to federal laws applicable to national banks.

<PAGE>

                                        PATTERSON DENTAL COMPANY

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        ABILITYONE CORPORATION

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        ABILITYONE PRODUCTS CORP.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        PATTERSON DENTAL SUPPLY, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        WEBSTER VETERINARY SUPPLY, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        WEBSTER MANAGEMENT, LP,
                                        By WEBSTER VETERINARY SUPPLY, INC.
                                        Its General Manager

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                     Signature Page for Revolving Loan Note

<PAGE>

              SCHEDULE OF REVOLVING LOANS AND PAYMENTS OF PRINCIPAL
                                       TO
                             NOTE OF THE BORROWERS,
                               DATED [DATE], 20__

                          Principal       Maturity     Principal
                          Amount of      of Interest    Amount      Unpaid
Date         Currency   Revolving Loan     Period        Paid      Balance
--------------------------------------------------------------------------

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