Document:

Exhibit 10.3

 

Execution Version

 

GKK 2 HERALD MEZZ LLC

GUARANTEE AGREEMENT

 

THIS
GUARANTEE AGREEMENT
(as amended, modified, waived, supplemented, extended, restated or replaced
from time to time, this “Guarantee”),
is made as of the 7th day of April, 2009, by GKK 2 HERALD
MEZZ LLC, a Delaware limited liability company (together with its
successors and permitted assigns, the “Guarantor”, as a guarantor, for the benefit of
the several banks and other financial institutions as are, or may from time to
time become parties to the Credit Agreement (as defined below) (each, together
with its successors and assigns, a “Lender” and, collectively, the “Lenders”), and WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking
association, as administrative agent for the Lenders hereunder (in such
capacity, together with its successors and assigns, the “Administrative Agent”).  Capitalized terms used but not defined herein
shall have the meanings given to such terms in the Credit Agreement (defined
below).

 

RECITALS:

 

WHEREAS, under and subject to the terms of the
Credit Agreement, dated as of July 18, 2008 (as amended, modified,
restated, replaced, waived, substituted, supplemented or extended from time to
time, the “Credit Agreement”),
by and among Gramercy Warehouse Funding I LLC, a Delaware limited liability
company (together with its successors and permitted assigns, “GWF-I”), as a
borrower, GKK Trading Warehouse I LLC, a Delaware limited liability company
(together with its successors and permitted assigns, “GKK Trading” and together with GWF-I and any
other Person that becomes a borrower under the Credit Documents, the “Borrowers”), as a
borrower, Gramercy Capital Corp., a Maryland corporation (together with its
successors and permitted assigns, “Parent”), as a guarantor, GKK Capital LP, a
Delaware limited partnership (together with its successors and permitted
assigns, “GKK Capital”),
as a guarantor, Gramercy Investment Trust, a Maryland real estate investment
trust (together with its successors and permitted assigns, “Gramercy REIT”), as a
guarantor, GKK Trading Corp., a Delaware
corporation (together with its successors and permitted assigns, “GTC”, and, together
with Parent, GKK Capital and Gramercy REIT, the “Parent Guarantors”),
the Lenders and the Administrative Agent, the Borrowers and the Lenders have
agreed that the Lenders may make certain loans to the Borrowers subject to the
terms and conditions of the Credit Agreement;

 

WHEREAS,
simultaneously with the execution of this Guarantee, the Borrowers, the Parent
Guarantors and the Administrative Agent will be executing and delivering an
Amendment to the Credit Agreement (the “Amendment”);

 

WHEREAS, the Guarantor and GKK 885 Third Mezz
LLC are indirect, wholly owned subsidiaries of the Parent and, as such, the
Guarantor will benefit directly or indirectly from the transactions
contemplated under the Credit Agreement, as amended by the Amendment; and

 

WHEREAS, it was a condition precedent to the
effectiveness of the Amendment that the Guarantor shall have executed and delivered
this Guarantee in connection with the reimbursement obligations of GKK Capital
which currently exist or may subsequently arise in connection with the
Administrative Agent’s Clean, Irrevocable Standby Letter of Credit Number
SM226417W, issued on June 22, 2007 for the benefit of GKK Capital as
applicant and naming GFW-1 and Gramercy Warehouse Funding II as beneficiaries
(collectively, the “Guarantee Obligations”).

 

 

NOW,
THEREFORE, based
upon the foregoing Recitals and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Guarantor,
intending to be legally bound, hereby agrees as follows:

 

1.             Defined Terms   The following term is defined for purposes of
this Guarantee as follows:

 

“Pledged Collateral” shall have the meaning assigned thereto in
the Pledge Agreement.

 

2.             Guarantee of Payment and
Performance.

 

(a)           The Guarantor hereby unconditionally and irrevocably
guarantees to the Administrative Agent and the Lenders the prompt and complete
payment and performance by each Borrower when due (whether at the stated
maturity, by acceleration or otherwise) of the Guarantee Obligations.

 

(b)           The Guarantor further agrees to pay any and all reasonable
expenses (including, without limitation, all reasonable fees and disbursements
of counsel) which may be paid or incurred by the Administrative Agent and any
Lender in enforcing, or obtaining advice of counsel in respect of, any rights
with respect to, or collecting, any or all of the Guarantee Obligations and/or
enforcing any rights with respect to, or collecting against, the Guarantor
under this Guarantee.  This Guarantee
shall remain in full force and effect until the Obligations are paid in full,
notwithstanding that from time to time prior thereto the Borrowers may be free
from any Obligations.

 

(c)           No payment or payments made by any Borrower or any other
Person or received or collected by the Administrative Agent or any Lender from
any Borrower or any other Person by virtue of any action or proceeding or any
set-off or appropriation or application, at any time or from time to time, in
reduction of or in payment of the Obligations shall be deemed to modify,
reduce, release or otherwise affect the liability of the Guarantor hereunder
which shall, notwithstanding any such payment or payments, remain liable for
the amount of the Obligations until the Obligations are paid in full.

 

(d)           The Guarantor agrees that whenever, at any time, or from
time to time, the Guarantor shall make any payment to the Administrative Agent
for the ratable benefit of the Lenders on account of the Guarantor’s liability
hereunder, the Guarantor will notify the Administrative Agent in writing that
such payment is made under this Guarantee for such purpose.

 

3.             Release of Collateral, Parties
Liable, etc.

 

The
Guarantor agrees that (a) any or all of the Collateral, the Pledged
Collateral and other collateral, security and Property now or hereafter held
for the Guarantee or the Guarantee Obligations may be exchanged, released,
terminated, modified, sold, assigned, participated, pledged, compromised,
surrendered or otherwise transferred or disposed of from time to time; (b) except
as expressly set forth in the Credit Documents, the Administrative Agent and
the Lenders shall have no obligation to protect, perfect, secure or insure any
Collateral, the Pledged Collateral or any collateral, security, Property,
Liens, interests or encumbrances now or hereafter held for the Guarantee or the
Guarantee Obligations or the Properties subject thereto; (c) the time,
place, manner or terms of payment of the Guarantee Obligations may be changed
or extended, in whole or in part, to a time certain or otherwise, and may be
renewed or accelerated, in whole or in part; (d) the Borrowers, the
Pledgors, the other Credit Parties and other Persons may be granted indulgences
generally; (e) any of the provisions of the Credit Agreement and the other
Credit Documents and the Guarantee Obligations may be modified, amended,
waived,

 

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supplemented, replaced or restated from time to time; (f) any
party liable for the payment of the Guarantee Obligations, including, without
limitation, other guarantors, may be granted indulgences or released; and (g) any
deposit balance for the credit of the Borrowers or any other Person liable for
the payment of the Guarantee Obligations, including, without limitation, other
guarantors, or liable upon any security therefor, may be released, in whole or
in part, at, before and/or after the stated, extended or accelerated maturity
of the Guarantee Obligations, all of the foregoing in clauses (a) through (g) without
notice to or further assent by the Guarantor, who shall remain bound thereon,
notwithstanding any such exchange, compromise, surrender, extension, renewal,
acceleration, modification, indulgence, release or other act.

 

4.             Waiver of Rights.

 

The
Guarantor expressly waives:  (a) notice
of acceptance of this Guarantee by the Administrative Agent, the Lenders or any
other guarantor and of all extensions of credit, loans or advances to or
purchases from the Borrowers by the Administrative Agent or the Lenders; (b) presentment
and demand for payment of any of the Guarantee Obligations; (c) protest
and notice of dishonor or of default to the Guarantor or to any other Person
with respect to the Guarantee Obligations or with respect to any collateral,
security or Property therefor; (d) notice of the Administrative Agent or
the Lenders obtaining, amending, substituting for, releasing, waiving,
modifying, extending, replacing or restating all or any portion of the
Guarantee Obligations, the Credit Agreement, any other Credit Document, other
guarantees or any Lien now or hereafter securing the Guarantee Obligations or
the Guarantee, or the Administrative Agent or the Lenders subordinating,
compromising, discharging, terminating or releasing such Liens; (e) notice
of the execution and delivery by the Borrowers, the Administrative Agent, the
Lenders or any other Person of any other loan, purchase, credit or security
agreement or document or of the Borrowers’ or such other Person’s execution and
delivery of any promissory notes or other documents arising under or in
connection with the Credit Documents or in connection with any purchase of the
Borrowers’ or such other Person’s Property or assets; (f) notice of any
kind concerning the assets, liabilities, financial condition, creditworthiness,
businesses, prospects or other affairs of the Borrowers or any other Person; (g) notice
of the occurrence of any breach by the Borrowers, the Pledgors, any other
Credit Party or any other Person or of any Event of Default; (h) notice of
the Administrative Agent’s or the Lenders’ transfer, disposition, assignment,
sale, pledge or participation of the Guarantee Obligations, the Collateral, the
Pledged Collateral, the Credit Documents, the Mortgage Loan Documents, or any
collateral, security or Property for the Guarantee or the Guarantee Obligations
or any portion of the foregoing; (i) notice of the sale or foreclosure (or
posting or advertising for sale or foreclosure) of all or any portion of any
Collateral, the Pledged Collateral or any collateral, security or Property for
the Guarantee or the Guarantee Obligations; (j) notice of the protest,
proof of non—payment or default by the Borrowers or any other Person; (k) any
other action at any time taken or omitted by the Administrative Agent or the
Lenders, and, generally, all demands and notices of every kind in connection
with this Guarantee, the Credit Documents, the Guarantee Obligations, the
Collateral, the Pledged Collateral, any collateral, security or Property for
the Guarantee or the Guarantee Obligations, the Mortgage Loan Documents, any
documents or agreements evidencing, securing or relating to any of the
Guarantee or the Guarantee Obligations and the obligations hereby guaranteed; (l) all
other notices to which the Guarantor might otherwise be entitled; (m) demand
for payment under this Guarantee; and (n) any right to assert against the
Administrative Agent or the Lenders, as a defense, counterclaim, set—off or
cross—claim, any defense (legal or equitable), set—off, counterclaim or claim
of any kind or nature whatsoever that the Guarantor may now or hereafter have
against the Administrative Agent or the Lenders (other than payment in full of
the Guarantee Obligations), the Borrowers or any other Person.  It shall not be necessary for the
Administrative Agent or the Lenders (and the Guarantor hereby waives any rights
which the Guarantor may have to require the Administrative Agent or the
Lenders), in order to enforce the obligations of the Guarantor hereunder, to (i) institute
suit, enforce its rights or exhaust its remedies against the Borrowers, the
Pledgors, any other Credit Party, others liable on

 

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the Guarantee Obligations, the Obligors or any other
Person, (ii) enforce the Administrative Agent’s or the Lenders’ rights or
exhaust its remedies under or with respect to the Mortgage Loan Documents and
the collateral and Property secured thereby, the Collateral, the Pledged
Collateral or any collateral, security or Property which shall ever have been
given to secure the Guarantee or the Guarantee Obligations, (iii) enforce
the Administrative Agent’s or the Lenders’ rights against any other guarantors
of the Guarantee Obligations, (iv) join the Borrowers, others liable on
the Guarantee Obligations or any other Person in any action seeking to enforce
this Guarantee, (v) mitigate damages or take any other action to reduce,
collect or enforce the Guarantee Obligations or (vi) resort to any other
means of obtaining payment of the Guarantee Obligations.

 

5.             Guarantee Absolute and
Unconditional.

 

The
obligations of the Guarantor under this Guarantee are absolute and
unconditional, irrespective of the value, genuineness, validity, regularity or
enforceability of the obligations of the Borrowers under the Credit Agreement
and, to the fullest extent permitted by applicable law, irrespective of any
other circumstance whatsoever that might otherwise constitute a legal or
equitable discharge or defense of a surety or guarantor, it being the intent of
this Section 5 that the obligations of the Guarantor hereunder
shall be absolute and unconditional under any and all circumstances, and a
separate action or actions may be brought and prosecuted against the Guarantor
to enforce this Guarantee, irrespective of whether any action is brought
against the Borrowers, the Pledgors, any other guarantors or any other Credit
Party or whether the Borrowers, the Pledgors, the other guarantors or any other
Credit Party are joined in any such action or actions.  The validity of this Guarantee, the
obligations of the Guarantor hereunder and the Administrative Agent’s and the
Lenders’ rights and remedies for the enforcement of the foregoing shall in no
way be terminated, abated, reduced, released, modified, changed, discharged,
diminished, affected, limited or impaired in any manner whatsoever by the
happening from time to time of any event or condition of any kind whatsoever,
including, without limitation, any of the following (and the Guarantor hereby
waives any common law, equitable, statutory, constitutional, regulatory or
other rights (including rights to notice) which the Guarantor might have as a
result of or in connection with any of the following):  (a) the assertion or non—assertion by
the Administrative Agent or the Lenders of any of the rights or remedies
available to the Administrative Agent or the Lenders pursuant to the provisions
of the Credit Documents, the Mortgage Loan Documents or pursuant to any
Requirement of Law; (b) the waiver by the Administrative Agent or the
Lenders of, or the failure of the Administrative Agent or the Lenders to
enforce, or the lack of diligence by the Administrative Agent or the Lenders in
connection with, the enforcement of any of its rights or remedies under the
Credit Documents, the Mortgage Loan Documents, the Collateral, the Pledged
Collateral or any collateral, security or Property for the Guarantee or the
Guarantee Obligations; (c) the granting by the Administrative Agent or the
Lenders of (or failure by the Administrative Agent or the Lenders to grant) any
indulgence, forbearance, adjustment, compromise, consent, approval, waiver or
extension of time; (d) the occurrence of any Default or Event of Default
under the Credit Agreement, or the occurrence of any similar event (howsoever
described) under any agreement or instrument referred to therein; (e) any
delay, failure or inability of any Borrower, Pledgor, Guarantor or any other
Credit Party in respect of any of the Guarantee Obligations to perform, willful
or otherwise, any provision of the Credit Agreement beyond any applicable cure
periods; (f) any action or failure to act by the Administrative Agent or
the Lenders that adversely affects the Guarantor’s right of subrogation arising
by reason of any performance by the Guarantor of this Guarantee; (g) any
suit or other action brought by, or any judgment in favor of, any beneficiaries
or creditors of, any Borrower, Pledgor, Guarantor, other Credit Party or any
other Person for any reason whatsoever, including any suit or action in any way
disaffirming, repudiating, rejecting or otherwise calling into question any
issue, matter or thing in respect of the Credit Agreement; (h) any lack or
limitation of status or of power, incapacity or disability of any Borrower, the
Pledgor, Guarantor or any other Credit Party in respect of any of the Guarantee
Obligations; (i) the exercise by the Administrative Agent or the Lenders
of or failure to exercise any so—called self—help remedies; (j) any act,
omission or condition that might in any manner

 

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or to any extent vary, alter, increase, extend or
continue the risk to the Guarantor or might otherwise operate as a discharge or
release of the Guarantor under Requirements of Law; (k) any full or
partial release or discharge of or accord and satisfaction with respect to
liability for the Guarantee Obligations, or any part thereof, of the Borrowers,
the Guarantor, the Pledgors, any other Credit Party, any co—guarantors or any
other Person now or hereafter liable, whether directly or indirectly, jointly,
severally, or jointly and severally, to pay, perform, guarantee or assure the
payment of the Guarantee Obligations, or any part thereof; (l) the
impairment, modification, change, release, discharge or limitation of the
liability of the Borrowers, the Guarantor, the Pledgors, any other Credit
Party, any Obligor or any Person liable for or obligated on the Guarantee
Obligations, or any of their estates in bankruptcy, resulting from or pursuant
to the bankruptcy or insolvency of any of the foregoing or the application of
the Insolvency Laws or of or any decision of any court of the United States or
any state thereof; (m) any present or future Requirements of Law or order
of any Governmental Authority (de jure or de facto) purporting to reduce, amend or otherwise
affect the Guarantee Obligations or to vary any terms of payment, satisfaction
or discharge thereof; (n) the waiver, compromise, settlement, release,
extension, acceleration, amendment, change, modification, substitution,
replacement, reduction, increase, alteration, rearrangement, renewal or
termination of the terms of the Guarantee Obligations, the Credit Documents,
the Collateral, the Pledged Collateral, any collateral, security or Property
for the Guarantee or the Guarantee Obligations, the Mortgage Loan Documents,
any or all of the obligations, covenants or agreements of the Borrowers, the Pledgors,
the other Credit Parties, the Obligors or any other Person under the Credit
Documents or Mortgage Loan Documents (except by satisfaction in full of all
Guarantee Obligations) or of the Guarantor under this Guarantee and/or any
failure of the Administrative Agent or the Lenders to notify the Guarantor of
any of the foregoing; (o) the extension of the time for satisfaction,
discharge or payment of the Guarantee Obligations or any part thereof owing or
payable by the Borrowers or any other Person under the Credit Documents or of
the time for performance of any other obligations, covenants or agreements
under or arising out of this Guarantee or the extension or renewal of any
thereof; (p) any existing or future offset, claim or defense (other than
payment in full of the Guarantee Obligations) of the Borrowers or any other
Person against the Administrative Agent or the Lenders or against payment of
the Guarantee Obligations, whether such offset, claim or defense arises in
connection with the Guarantee Obligations (or the transactions creating same)
or otherwise; (q) the taking or acceptance or the existence of any other
guarantee of or collateral, security or Property for the Guarantee Obligations
in favor of the Administrative Agent, the Lenders or any other Person specified
in the Credit Documents or the enforcement or attempted enforcement of such
other guarantee, collateral, security or Property; (r) any sale, lease,
sublease or transfer of or Lien on all or a portion of the assets or Property
of the Borrowers, the Pledgors, the Guarantor or any other Credit Party, or any
changes in the shareholders, partners or members of the Borrowers, the
Pledgors, the Guarantor or any other Credit Party, or any reorganization,
consolidation or merger of the Borrowers, the Pledgors, the Guarantor or any
other Credit Party; (s) any consolidation or amalgamation of the
Borrowers, the Pledgors, the Guarantor or any other Credit Party with, any
merger of the Borrowers, the Pledgors, the Guarantor or any other Credit Party
with or into, or any transfer by the Borrowers, the Pledgors, the Guarantor or
any other Credit Party of all or substantially all their assets to, another
Person, any change in the legal or beneficial ownership of ownership interests
issued by the Borrowers, the Pledgors, the Guarantor or any other Credit Party,
or any other change whatsoever in the objects, capital structure, constitution
or business of the Borrowers, the Pledgors, the Guarantor or any other Credit
Party; (t) the invalidity, illegality or unenforceability of all or any
part of the Guarantee Obligations, the Credit Documents, the Collateral, the
Pledged Collateral, any collateral, security or Property for the Guarantee or
the Guarantee Obligations, the Mortgage Loan Documents or any document or
agreement executed in connection with the foregoing, for any reason whatsoever,
including, without limitation, the fact that (1) the Guarantee
Obligations, or any part thereof, exceeds the amount permitted by Requirements
of Law or violates usury laws, (2) the act of creating the Guarantee
Obligations, the Mortgage Assets, the Collateral, the Pledged Collateral, any
collateral, security or Property for the Guarantee or the Guarantee Obligations
or any part of the foregoing is ultra  vires, (3) the officers or
representatives executing the Mortgage Loan Documents or Credit Documents or
otherwise

 

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creating the Guarantee Obligations, the Mortgage
Assets, the Collateral, the Pledged Collateral or any collateral, security or
Property for the Guarantee or the Guarantee Obligations acted in excess of
their authority, (4) the Borrowers, the Pledgors, any other Credit Party,
any Obligor or any other Person has valid defenses, claims or offsets (whether
at law, in equity or by agreement) which render the Guarantee Obligations
wholly or partially uncollectible, (5) the creation, performance or
repayment of the Guarantee Obligations, the Mortgage Assets, the Collateral,
the Pledged Collateral or any collateral, security or Property for the
Guarantee or the Guarantee Obligations (or the execution, delivery and
performance of any Credit Document, Mortgage Loan Document or document or
instrument representing part of the Guarantee Obligations, the Mortgage Assets,
the Collateral, the Pledged Collateral, any collateral, security or Property
for the Guarantee or the Guarantee Obligations or executed in connection with
the Guarantee Obligations, the Mortgage Assets, the Collateral, the Pledged
Collateral or any collateral, security or Property for the Guarantee or the
Guarantee Obligations, or given to secure the repayment of the Guarantee
Obligations, the Mortgage Assets or the other Collateral) is illegal,
uncollectible or unenforceable or (6) any Mortgage Loan Document, any Credit
Document or any other document, agreement or instrument has been forged or
otherwise is irregular or not genuine or authentic; (u) any release,
termination, sale, pledge, participation, transfer, surrender, exchange,
subordination, deterioration, waste, loss or impairment (including, without
limitation, negligent, willful, unreasonable or unjustifiable impairment) of
the Collateral, the Pledged Collateral or any collateral, security or Property
at any time existing in connection with, or assuring or securing payment of,
all or any part of the Guarantee or the Guarantee Obligations; (v) the
failure of the Administrative Agent, the Lenders or any other Person to
exercise diligence or reasonable care in the preservation, protection,
enforcement, sale or other handling or treatment of all or any part of the
Collateral, the Pledged Collateral or any other collateral, security or
Property for the Guarantee or the Guarantee Obligations, including, but not
limited to, any neglect, delay, omission, failure or refusal of the
Administrative Agent or the Lenders (1) to take or prosecute any action
for the collection of any of the Guarantee Obligations, the Pledged Collateral,
any Collateral or any collateral, security or Property for the Guarantee or the
Guarantee Obligations, (2) to foreclose, or initiate any action to
foreclose, or, once commenced, prosecute to completion any action to foreclose,
upon any Collateral, the Pledged Collateral or any security, collateral or
Property for the Guarantee or Guarantee Obligations, or (3) to take or
prosecute any action in connection with any instrument or agreement evidencing
or securing all or any part of the Guarantee Obligations; (w) the fact
that the Collateral, the Pledged Collateral or any collateral, security, Property
or Lien contemplated or intended to be given, created or granted as security
for the repayment of the Guarantee or the Guarantee Obligations, or any part
thereof, shall not be properly perfected or created, or shall prove to be
unenforceable or subordinate to any other Lien; (x) any payment by the
Borrowers or any other Person to the Administrative Agent or the Lenders is
held to constitute a preference under Insolvency Laws, or for any reason the
Administrative Agent or the Lenders are required to refund such payment or pay
such amount to any such Borrower or other Person; or (y) any event or
action that would, in the absence of this Section 5, result in the
full or partial release, discharge or relief of the Guarantor from the
performance or observance of any obligation, covenant or agreement contained in
this Guarantee or any other agreement, whether or not such event or action
increases the likelihood that the Guarantor will be required to pay the
Guarantee Obligations pursuant to the terms hereof or thereof and whether or
not such event or action prejudices the Guarantor, it being the unambiguous and
unequivocal intention of the Guarantor that the Guarantor shall be obligated to
pay the Guarantee Obligations when due, notwithstanding any occurrence, circumstance,
event, action or omission whatsoever, whether contemplated or uncontemplated,
and whether or not otherwise or particularly or expressly described herein,
which obligation shall be deemed satisfied only upon the full and final
indefeasible payment and satisfaction of the Guarantee Obligations.

 

6.             Primary Liability of the
Guarantor.

 

Without
limiting the foregoing provisions, the Guarantor agrees that this Guarantee may
be enforced by the Administrative Agent and the Lenders without the necessity
at any time of resorting to

 

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or exhausting any other security or collateral and
without the necessity at any time of having recourse to any of the Credit
Documents, the Collateral, the Pledged Collateral or any collateral, security
or Property now or hereafter securing the Guarantee or the Guarantee
Obligations or otherwise, and the Guarantor hereby waives the right to require
the Administrative Agent or the Lenders to proceed against the Borrowers, the Pledgors,
any other Credit Party, any Obligor or any other Person (including a co—guarantor)
or to require the Administrative Agent or the Lenders to pursue any other
remedy or enforce any other right.  The
Guarantor further agrees that the Guarantor shall have no right of subrogation,
reimbursement or indemnity whatsoever against any Person, or any right of
recourse to the Collateral, the Pledged Collateral or any collateral, security
or Property for the Guarantee or the Guarantee Obligations, so long as any such
Guarantee Obligations remain outstanding. 
The Guarantor further agrees that nothing contained herein shall prevent
the Administrative Agent or the Lenders from suing on the Credit Agreement or
any of the other Credit Documents or foreclosing its security interest in or
Lien on any Collateral, the Pledged Collateral or any collateral, security or
Property now or hereafter securing the Guarantee or the Guarantee Obligations
or from exercising any other rights available to it under the Credit Agreement or
any of the other Credit Documents or any other instrument of security if none
of the Borrowers, the Pledgors, the Guarantor or any other Credit Party timely
perform the obligations of the Borrowers, the Pledgors, all other Credit
Parties or other Persons thereunder, and the exercise of any of the aforesaid
rights and the completion of any foreclosure proceedings shall not constitute a
discharge of the Guarantor’s obligations hereunder; it being the purpose and
intent of the Guarantor that the Guarantor’s obligations hereunder shall be
absolute, independent and unconditional under any and all circumstances.  The Guarantor recognizes, acknowledges and
agrees that the Guarantor may be required to pay the Guarantee Obligations in
full (subject to the limit set forth in Section 2) without
assistance or support of any other Person, and the Guarantor has not been
induced to enter into this Guarantee on the basis of a contemplation, belief,
understanding or agreement that other parties will be liable to pay or perform
the Guarantee Obligations, or that the Administrative Agent or the Lenders will
look to other parties to pay or perform the Guarantee Obligations.  The Guarantor recognizes, acknowledges and
agrees that it is not entering into this Guarantee in reliance on, or in
contemplation of the benefits of, the validity, enforceability, collectability
or value of the Collateral, the Pledged Collateral or any of the collateral,
security or Property for the Guarantee or the Guarantee Obligations or of the
validity, enforceability or collectability of this Guarantee against any other
guarantor.

 

7.             Payments.

 

The
Guarantor hereby agrees that the Guarantee Obligations will be paid to the
Administrative Agent for the ratable benefit of the Lenders without set-off or
counterclaim in U.S. Dollars at the address specified in writing by the
Administrative Agent.

 

8.             Attorneys’ Fees and Costs of
Collection.

 

The
Guarantor hereby agrees to pay all reasonable costs, fees and expenses
(including reasonable attorneys’ fees) incurred by the Administrative Agent or
the Lenders to pursue collection, to preserve or enforce its rights under this
Guarantee, or to intervene, to sue for enforcement of the terms of this
Guarantee or to file a petition, complaint, answer, motion or other pleading in
any suit or proceeding relating to this Guarantee, and, in such event, all of
the attorneys’ fees, costs and expenses relating thereto and all other amounts
(if any) owed by the Guarantor under this Guarantee (other than the Guarantee
Obligations) shall be an additional liability of the Guarantor to the
Administrative Agent and the Lenders (over and above any limitation set forth
in Section 2, if any), payable on demand.  The obligations contained in this Section 8
shall survive the termination of this Guarantee.

 

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9.             Security Interests and Setoff.

 

The
Guarantor agrees that in the event the Guarantor fails to pay its obligations
hereunder when due and payable under this Guarantee, the Administrative Agent
and the Lenders shall be entitled to (a) any and all remedies available to
it including, without limitation, all rights of setoff and (b) the benefit
of all Liens heretofore, now and at any time or times hereafter granted by the
Guarantor or any Borrower to the Administrative Agent and the Lenders, if any,
to secure the Guarantor’s obligations hereunder.

 

10.          Term of Guarantee.

 

This
Guarantee shall continue in full force and effect until the Guarantee
Obligations are fully and indefeasibly paid, performed and discharged and the
Credit Documents are terminated.  This
Guarantee covers the Guarantee Obligations whether presently outstanding or
arising subsequent to the date hereof, including all amounts advanced by the
Administrative Agent or the Lenders in stages or installments.  Notwithstanding the foregoing, this Guarantee
shall continue to be effective, or be reinstated, as the case may be, and any
payment of the Guarantee Obligations hereunder shall be reinstated, if at any
time payment, or any part thereof, of any of the Guarantee Obligations is
rescinded or must otherwise be restored or returned by the Administrative Agent
or the Lenders as a preference, fraudulent conveyance or otherwise upon or in
connection with an Insolvency, Act of Insolvency, Insolvency Proceeding,
bankruptcy, dissolution, liquidation or reorganization with respect to the
Borrowers or any other Person obligated on or for the Guarantee Obligations, or
upon or as a result of the appointment of a receiver, intervenor or conservator
of, or trustee or similar officer for, any of the Borrowers or such other
Person or any substantial part of such Borrowers’ or such other Person’s
Property or assets, or otherwise, all as though such payments had not been
made; provided that in the event payment of all or any part of the
Guarantee Obligations is rescinded or must be restored or returned, all costs
and expenses (including, without limitation, any legal fees and disbursements)
incurred by the Administrative Agent or the Lenders in defending and enforcing
such reinstatement shall be deemed to be included as a part of the Guarantee
Obligations.

 

11.          Representations and Warranties.

 

(a)           The Guarantor represents and warrants to, and covenants
with, the Administrative Agent and the Lenders, as of the date of this
Guarantee, and shall be deemed to restate as of each Borrowing Date, that:

 

(i)            it
is duly organized, validly existing and in good standing as a corporation,
limited partnership, limited liability company or real estate investment trust
under the laws of the jurisdiction of its organization or formation, and is
duly qualified to do business and is in good standing in all jurisdictions in
which the character of its Property or assets, the nature of its business or
the performance of its obligations under any agreement to which it is a party
or is bound makes such qualification necessary, except for any failure to
qualify outside of the jurisdiction of organization or formation that would not
have a Material Adverse Effect;

 

(ii)           its
execution and delivery of, performance under and compliance with this Guarantee
will not violate its Authority Documents or constitute a default (or an event
that, with notice or lapse of time, or both, would constitute a default) under,
or result in a material breach of, any material Contractual Obligation,
Indebtedness or Guarantee Obligation to which it is a party or by which it is
bound;

 

(iii)          its
execution and delivery of, performance under and compliance with this Guarantee
will not violate any law, treaty, rule or regulation or determination of
an arbitrator, a

 

8

 

court or other governmental authority, applicable to or binding upon
the Guarantor or any of its property or to which the Guarantor or any of its
property is subject (“Requirement
of Law”), or any provision of any security issued by the
Guarantor or of any agreement, instrument or other undertaking to which the
Guarantor is a party or by which it or any of its property is bound (“Contractual Obligation”),
and will not result in or require the creation or imposition of any Lien on any
of the properties or revenues of the Guarantor pursuant to any Requirement of
Law or Contractual Obligation of the Guarantor;

 

(iv)          the Guarantor has the legal capacity and
the legal right to execute and deliver this Guarantee and to perform the
Guarantor’s obligations hereunder;

 

(v)           it has the full power and authority to
enter into and consummate all transactions contemplated by this Guarantee, has
duly authorized the execution, delivery and performance of this Guarantee, and
has duly executed and delivered this Guarantee;

 

(vi)          this Guarantee constitutes a valid, legal
and binding obligation of the Guarantor, enforceable against it in accordance
with the terms hereof, subject to (A) Insolvency Laws affecting the
enforcement of creditors’ rights generally, and (B) general principles of
equity, regardless of whether such enforcement is considered in a proceeding in
equity or at law;

 

(vii)         it is not in violation of, and its
execution and delivery of, performance under and compliance with this Guarantee
shall not constitute a violation of, its Authority Documents, any Requirement
of Law, any order or decree of any court or arbiter, or any order, regulation
or demand of any Governmental Authority;

 

(viii)        no consent, approval, order or
authorization of, filing with, or other act by or in respect of, any arbitrator
or Governmental Authority and no consent of any other Person (including,
without limitation, any creditor of the Guarantor) is required in connection
with the execution, delivery, performance, validity or enforceability of this
Guarantee;

 

(ix)           to the knowledge of the Guarantor, no
litigation, investigation or proceeding of or before any arbitrator or
Governmental Authority is pending or threatened by or against the Guarantor or
against any of the Guarantor’s properties or revenues with respect to this
Guarantee or any of the transactions contemplated hereby;

 

(x)            to the knowledge of the Guarantor, none
of the Guarantor, the Borrowers, the Pledgors, any other Credit Party or any
principal, director, partner, manager or owner of the foregoing (other than
unaffiliated minority owners of publicly traded common stock) has ever been
convicted of a crime or is the subject of any currently pending or threatened
criminal proceeding that, in any particular case or taken collectively, could
have a Material Adverse Effect;

 

(xi)           except as disclosed in writing to the
Administrative Agent prior to the date hereof, the Guarantor has filed or
caused to be filed all tax returns which, to the knowledge of the Guarantor,
are required to be filed and has paid all taxes shown to be due and payable on
said returns or on any assessments made against the Guarantor or any of the
Guarantor’s Property and all other taxes, fees or other charges imposed on the
Guarantor or any of the Guarantor’s Property by any Governmental Authority
(other than any the amount or validity of which are currently being contested
in good faith by appropriate proceedings); no tax lien has been filed, and, to
the knowledge of the Guarantor, no claim is being asserted, with respect to any
such tax, fee or other charge;

 

9

 

(xii)          the Guarantor is not the subject of any
Insolvency Proceeding;

 

(xiii)         the recitals to this Guarantee are true
and correct; and

 

(xiv)         the Guarantor has received valuable
consideration, fair value, fair consideration or reasonable equivalent value
for the Guarantee Obligations, and the Guarantee Obligations (A) will not
render the Guarantor not Solvent, (B) will not leave the Guarantor with an
unreasonably small amount of capital to conduct its business, and (C) will
not cause the Guarantor to have incurred debts (or to have intended to have
incurred debts) beyond its ability to pay such debts as they mature.

 

(b)           The Guarantor acknowledges and agrees that it is not
relying on the Borrowers’ financial condition or collateral as an inducement to
enter into this Guarantee.  The Guarantor
agrees that the Administrative Agent and the Lenders shall have no obligation
to investigate the financial condition or affairs of the Borrowers for the
benefit of the Guarantor or to advise the Guarantor of any matter relating to
or arising under the Credit Agreement or any of the other Credit Documents or
any fact respecting, or any change in, the financial condition or affairs of
the Borrowers that might come to the knowledge of the Administrative Agent or
the Lenders at any time, whether or not the Administrative Agent or the Lenders
know or believe or have reason to know or believe that any such fact or change
is unknown to the Guarantor or might (or does) materially increase the risk of
the Guarantor as guarantor or might (or would) affect the willingness of the
Guarantor to continue as guarantor with respect to the Guarantee Obligations.

 

(c)           The Guarantor further represents and warrants to the
Administrative Agent and the Lenders that the financial statements (if any) and
other financial information (if any) of the Guarantor delivered to the
Administrative Agent prior to the Closing Date are true and correct and fairly
represent in all material respects the financial condition of the Guarantor on
the date of the delivery of such information and that there has been no Material
Adverse Effect since such date.

 

(d)           The representations and warranties of the Guarantor set
forth in this Section 11 shall survive the execution and delivery
of this Guarantee and shall inure to the benefit of the Persons for whose
benefit they were made for so long as this Guarantee is in effect.  Upon discovery by any party hereto of a
breach of any such representations and warranties, the party discovering such
breach shall give prompt written notice thereof to each other party.

 

12.          Covenants.

 

(a)           Buy Back of Capital Stock.  The Guarantor shall not be permitted to buy
back any of its Capital Stock while this Guarantee remains in effect.

 

(b)           Limitation on Conveyances.  The Guarantor shall not sell, assign,
transfer or otherwise convey, in a single transaction or in a series of
transactions, all or any substantial portion of its assets.

 

(c)           [reserved]

 

(d)           Negative Pledge. 
The Guarantor shall not create, incur, assume or suffer to exist any
Lien on any of its Property.

 

(e)           The covenants of the Guarantor set forth in this Section 12
shall survive the execution and delivery of this Guarantee and shall inure to
the benefit of the Persons for whose benefit

 

10

 

they were made for so long as this Guarantee
is in effect.  Upon discovery by any
party hereto of a breach of any such covenants, the party discovering such
breach shall give prompt written notice thereof to each other party.

 

13.          Additional Liability of Guarantor.

 

If the
Guarantor is or becomes liable for any Indebtedness owing by the Borrowers to
the Administrative Agent or the Lenders by endorsement or otherwise than under
this Guarantee, such liability shall not be in any manner impaired or reduced
hereby but shall have all and the same force and effect it would have had if
this Guarantee had not existed and the Guarantor’s liability hereunder shall
not be in any manner impaired or reduced thereby.

 

14.          Cumulative Rights.

 

All
rights of the Administrative Agent and the Lenders hereunder or otherwise
arising under the Credit Documents or any documents executed in connection with
or as security for the Guarantee Obligations or under Requirements of Law are
separate and cumulative and may be pursued separately, successively or
concurrently, or not pursued, without affecting, limiting or impairing any
other right of the Administrative Agent and the Lenders and without limiting,
affecting or impairing the liability of the Guarantor.

 

15.          Assignments.

 

(a)           Assignments by the Administrative Agent or the Lenders.  This Guarantee is intended for and shall
inure to the benefit of the Administrative Agent, the Lenders and each and
every Person who shall from time to time be or become the owner or holder of
any of the Guarantee Obligations, and each and every reference herein to the
Administrative Agent and the Lenders shall include and refer to each and every
successor, assignee, pledgee and participant of the Administrative Agent and
the Lenders and the successors, assignees and participants of the foregoing at
any time holding or owning any part of or interest in any part of the Guarantee
Obligations.  This Guarantee shall be
transferable and negotiable by the Administrative Agent and the Lenders with
the same force and effect, and to the same extent, that the Guarantee
Obligations are transferable and negotiable, it being understood and stipulated
that, upon assignment or any such transfer by the Administrative Agent or the
Lenders of any of the Guarantee Obligations, the legal holder or owner of said
Guarantee Obligations (or a part thereof or interest therein thus transferred
or assigned) shall (except as otherwise stipulated by the Administrative Agent
or the Lenders in its assignment) have and may exercise all of the rights
granted to the Administrative Agent and the Lenders under this Guarantee to the
extent of that part of or interest in the Guarantee Obligations thus assigned
or so transferred to said Person.  The
Guarantor expressly waives notice of any such transfer or assignment of the
Guarantee Obligations, or any part thereof, or of the rights of the
Administrative Agent and the Lenders hereunder. 
The Guarantor acknowledges and agrees that any action taken hereunder
shall not release or discharge this Guarantee or any obligations of the
Guarantor hereunder.

 

(b)           Assignments by Guarantor.  This Guarantee may not be assigned, and the
Guarantor’s agreements, duties, obligations and covenants hereunder may not be
delegated, in whole or in part by the Guarantor.  All agreements, duties, obligations and
covenants of the Guarantor hereunder shall bind and shall be enforceable
against the Guarantor’s successors and assigns.

 

11

 

16.          Application of Payments.

 

The
Administrative Agent and the Lenders may apply any payments received by them
from any source against such portion of the Guarantee Obligations and in such
priority and fashion as they may deem appropriate in their sole and absolute
discretion.

 

17.          Counterclaims; Setoff.

 

The
Guarantor waives all rights to interpose any claims, deduction or counterclaims
of any kind, nature or description in any action or proceeding instituted by
the Administrative Agent or the Lenders with respect to this Guarantee, the
Guarantee Obligations, the Collateral, the Pledged Collateral, the collateral,
security or Property for the Guarantee or the Guarantee Obligations or any
matter arising from or relating to any of the foregoing, except compulsory
counterclaims.  The Guarantor hereby
waives any right of setoff it may have or to which it may be entitled under
this Guarantee, the Credit Documents or Requirements of Law from time to time
against the Administrative Agent or the Lenders or their assets or
Property.  Notwithstanding anything to
the contrary contained in this Guarantee, until the Guarantee Obligations have
been indefeasibly paid in full, the Guarantor hereby unconditionally and
irrevocably waives, releases and abrogates any and all rights it may now or
hereafter have under any agreement, at law or in equity (including, without
limitation, any law subrogating the Guarantor to the rights of the
Administrative Agent or the Lenders), to assert any claim against or seek
contribution, indemnification or any other form of reimbursement from the
Borrowers, the Pledgors, any other Credit Party or any other Person liable for
payment of any or all of the Guarantee Obligations for any payment made by the
Guarantor under or in connection with this Guarantee or otherwise.

 

18.          Bankruptcy Code Waiver.

 

In the
event that a Borrower becomes a debtor in any proceeding under the Bankruptcy
Code, the Guarantor shall not be deemed to be a “creditor” (as defined in Section 101
of the Bankruptcy Code) of such Borrower, by reason of the existence of this
Guarantee, and in connection herewith, the Guarantor hereby waives any such
right as a “creditor” under the Bankruptcy Code.  This waiver is given to induce the
Administrative Agent and the Lenders to enter into the transactions
contemplated by the Credit Documents. 
After the Guarantee Obligations are paid in full and there shall be no
obligations or liabilities under this Guarantee outstanding, this waiver shall
be deemed to be terminated.

 

19.          The Borrowers’ and Pledgor’s
Actions.

 

No
encumbrance, assignment, leasing, subletting, sale or other transfer by a
Borrower or a Pledgor of any of the Borrowers’ or the Pledgors’ assets or
Property shall operate to extinguish or diminish the liability of the Guarantor
under this Guarantee.

 

20.          Subordination.

 

(a)           As used in this Guarantee, the term “Guarantor Claims”
shall mean all debts, liabilities and other Indebtedness of the Borrowers, the
Pledgors, the Guarantor, any other Credit Party or any other Person obligated
to the Administrative Agent, the Lenders or any other Person specified under
any Credit Document to the Guarantor, whether such debts, liabilities and other
Indebtedness now exist or are hereafter incurred or arise, or whether the
obligations of such Borrower, Pledgor, Guarantor, other Credit Party or such
other Person thereon be direct, contingent, primary, secondary, several, joint
and several, or otherwise, and irrespective of whether such debts, liabilities
or other Indebtedness be evidenced by note, contract, open account or
otherwise, and irrespective of the Person or Persons in whose favor such debts,
liabilities or other Indebtedness may, at their inception, have been, or may 

 

12

 

hereafter be created, or the manner in which they have been or may
hereafter be acquired by the Guarantor. 
The Guarantor Claims shall include, without limitation, all rights and
claims of the Guarantor against the Borrowers, the Pledgors, any other
guarantor, other Credit Parties or other Persons (arising as a result of
subrogation or otherwise) as a result of the Guarantor’s payment of all or a
portion of the Guarantee Obligations. 
All Guarantor Claims are and shall be subordinate to the Guarantee
Obligations.

 

(b)           In the event of any Insolvency Proceedings involving the
Guarantor as debtor, the Administrative Agent and the Lenders shall have the
right to prove its claim in any such proceeding so as to establish its rights
hereunder and receive directly from the receiver, trustee or other court
custodian dividends and any payments which would otherwise be payable upon
Guarantor Claims to the extent of any sums owed by the Guarantor
hereunder.  The Guarantor hereby assigns
such dividends and payments to the Administrative Agent as agent for the
Lenders.  Should the Administrative Agent
as agent for the Lenders receive, for application upon the Guarantee
Obligations, any such dividend or payment which is otherwise payable to the
Guarantor, and which, as between the Borrowers, the Pledgors, any other
guarantor or any other Person described in clause (a) above on the
one hand and the Guarantor on the other, shall constitute a credit upon the
Guarantor Claims, then upon payment to the Administrative Agent as agent for
the Lenders in full of the Guarantee Obligations, the Guarantor shall become
subrogated to the rights of the Administrative Agent and the Lenders to the
extent that such payments to the Administrative Agent as agent for the Lenders
on the Guarantor Claims have contributed toward the liquidation of the
Guarantee Obligations, and such subrogation shall be with respect to that
proportion of the Guarantee Obligations which would have been unpaid if the
Administrative Agent as agent for the Lenders had not received dividends or
payments upon the Guarantor Claims.

 

(c)           In the event that, notwithstanding anything to the
contrary in this Guarantee, the Guarantor should receive any funds, payment,
claim or distribution which is prohibited by this Guarantee, the Guarantor
agrees to hold in trust for the Administrative Agent as agent for the Lenders
an amount equal to the amount of all funds, payments, claims or distributions
so received, and agrees that it shall have absolutely no dominion over the
amount of such funds, payments, claims or distributions so received except to
pay them promptly to the Administrative Agent as agent for the Lenders, and the
Guarantor covenants promptly to pay the same to the Administrative Agent as
agent for the Lenders.

 

(d)           The Guarantor agrees that any claims, charges or Liens
against the Borrowers, the Pledgors, any other guarantor, other Credit Parties
or any other Persons described under clause (a) above and/or such
Borrower’s, such Pledgor’s, any other guarantor’s, any other Credit Party’s or
such other Person’s assets and Property with respect to the Guarantor Claims
shall be and remain inferior and subordinate to any claims, charges or Liens of
the Administrative Agent or the Lenders against the Borrowers, the Pledgors,
the Guarantor, any other Credit Party or any such other Person and/or such
Borrower’s, such Pledgor’s, the Guarantor’s, any such other Credit Party’s or
such other Person’s assets and Property, regardless of whether such claims,
charges or Liens in favor of the Guarantor, the Administrative Agent or the
Lenders presently exist or are hereafter created or attach.  Without the prior written consent of the
Administrative Agent and the Lenders, the Guarantor shall not (i) exercise
or enforce any creditor’s right it may have against the Borrowers, the
Pledgors, any other guarantor, any other Credit Party or any other Person
described under clause (a) above, or (ii) foreclose,
repossess, sequester or otherwise take steps or institute any action or
proceedings (judicial or otherwise, including, without limitation, the
commencement of, or joinder in, any Insolvency Proceeding) to enforce any
claims, charges, Liens, mortgage, deeds of trust, security interests,
collateral rights, judgments or other encumbrances against the Borrowers, the Pledgors,
the Guarantor, any other Credit Party or such other Person or the assets or
Property of the Borrowers, the Pledgors, the Guarantor, any other Credit Party
or such other Person held by the Guarantor.

 

13

 

21.          Commercial Transaction.

 

To
induce the Administrative Agent and the Lenders to enter into this Guarantee
and the Transactions evidenced by and secured by the Credit Documents, the
Guarantor agrees that said Transactions are commercial and not consumer
transactions.

 

22.          Books and Records.

 

In
addition to any additional rights under the Credit Agreement and the other
Credit Documents, the Administrative Agent and the Lenders shall have the right
at the Guarantor’s cost, and the Guarantor shall permit and shall cooperate
with the Administrative Agent and the Lenders in arranging for, at any
reasonable time from time to time, the Administrative Agent, the Lenders and/or
their representatives, to review and audit all books, records and financial
statements (including all supporting data and other records) of the Guarantor,
and the Guarantor shall make all such books of account and records available
for such examination, at the office where the same are regularly maintained.  The Administrative Agent and the Lenders
shall have a right to copy, duplicate and make abstracts from such books and
records as the Administrative Agent and/or the Lenders may require.

 

23.          Notices, Etc.

 

All
notices and other communications provided for hereunder shall, unless otherwise
stated herein, be in writing (including telex communication and communication
by facsimile copy) and shall be governed by Section 10.2 of the
Credit Agreement.  The failure of the
Administrative Agent or the Lenders to give any notice required hereunder (if
any) shall not affect the liability or obligations of the Guarantor
hereunder.  Unless otherwise expressly
provided in this Guarantee, reference to any notice, request, approval, consent
or determination provided for, permitted or required under the terms of this
Guarantee with respect to the Borrowers, the Guarantor, the Administrative
Agent or the Lenders means, in order for such notice, request, approval,
consent or determination to be effective hereunder, such notice, request,
approval or consent must be in writing.

 

24.          No Waiver.

 

The
Administrative Agent shall not by any act (except by a written instrument
pursuant to Section 25 hereof), delay, indulgence, omission or
otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced
in any default or event of default or in any breach of any of the terms and
conditions hereof.  No failure to
exercise, nor any delay in exercising, on the part of the Administrative Agent,
any right, power or privilege hereunder shall operate as a waiver thereof.  No single or partial exercise of any right,
power or privilege hereunder shall preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.  A waiver by the Administrative Agent of any
right or remedy hereunder on any one occasion shall not be construed as a bar
to any right or remedy which the Administrative Agent would otherwise have on
any future occasion.

 

25.          Amendments and Waivers.

 

No
amendment, waiver or other modification of any provision of this Guarantee
shall be effective unless amended in accordance with the requirements of Section 10.1
of the Credit Agreement.  Any waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given.

 

14

 

26.          Severability; Integration.

 

Each
provision of this Guarantee shall be valid, binding and enforceable to the
fullest extent permitted by Requirements of Law.  In case any provision in or obligation under
this Guarantee shall be invalid, illegal or unenforceable in any jurisdiction
(either in its entirety or as applied to any Person, fact, circumstance, action
or inaction), the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other
jurisdiction or as applied to any other Person, fact, circumstance, action or
inaction, shall not in any way be affected or impaired thereby.  This Guarantee contains the final and
complete integration of all prior expressions by the Guarantor hereto with
respect to the subject matter hereof and shall constitute the entire agreement
of the Guarantor hereto with respect to the subject matter hereof, superseding
all prior oral or written understandings and there are no promises or
representations by the Administrative Agent or any Lender relative to the
subject matter hereof not reflected herein.

 

27.          Heading and Exhibits.

 

The
headings herein are for purposes of references only and shall not otherwise
affect the meaning or interpretation of any provision hereof.  The schedules, exhibits and annexes (if any)
attached hereto and referred to herein shall constitute a part of this
Guarantee and are incorporated into this Guarantee for all purposes.

 

28.          Governing Law.

 

THIS
GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

 

29.          Waivers.

 

(a)           THE GUARANTOR KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVES ANY RIGHT TO ASSERT A COUNTERCLAIM, OTHER THAN A COMPULSORY
COUNTERCLAIM, IN ANY ACTION OR PROCEEDING BROUGHT AGAINST IT BY THE
ADMINISTRATIVE AGENT, THE LENDERS OR ANY OF THEIR AFFILIATES OR AGENTS.

 

(b)           TO THE EXTENT PERMITTED BY REQUIREMENTS OF LAW, THE
GUARANTOR KNOWINGLY, VOLUNTARILY AND INTENTIONALLY HEREBY WAIVES ANY RIGHT TO
HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT,
TORT, OR OTHERWISE, BETWEEN THE PARTIES HERETO ARISING OUT OF, CONNECTED WITH,
RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP BETWEEN ANY OF THEM IN CONNECTION
WITH THIS GUARANTEE, THE CREDIT DOCUMENTS, THE TRANSACTIONS CONTEMPLATED HEREBY
OR ANY DEALINGS, COURSE OF DEALINGS, COURSE OF CONDUCT AMONG THEM OR ANY
STATEMENTS (WRITTEN OR ORAL) OR OTHER ACTIONS OF ANY PARTY, AND THE GUARANTOR
WILL NOT SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A
JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. 
INSTEAD, ANY SUCH DISPUTE RESOLVED IN COURT WILL BE RESOLVED IN A BENCH
TRIAL WITHOUT A JURY.

 

(c)           ANY LEGAL ACTION OR PROCEEDING AGAINST THE GUARANTOR
HERETO WITH RESPECT TO THIS GUARANTEE OR ANY OTHER CREDIT DOCUMENT MAY BE
BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES 

 

15

 

FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY
OF THIS GUARANTEE, THE GUARANTOR HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN
RESPECT OF ITS PROPERTY AND ASSETS, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS. 
NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY TO COMMENCE LEGAL
PROCEEDINGS OR OTHERWISE PROCEED AGAINST A PARTY IN ANY OTHER JURISDICTION.

 

(d)           THE GUARANTOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID
ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS GUARANTEE OR
ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (c) ABOVE
AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY
SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

(e)           THE GUARANTOR AGREES THAT SERVICE OF PROCESS IN ANY SUCH
ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY
REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL),
POSTAGE PREPAID, TO THE GUARANTOR AT THE GUARANTOR’S ADDRESS SET FORTH UNDER
THE GUARANTOR’S SIGNATURE BELOW OR AT SUCH OTHER ADDRESS OF WHICH THE
ADMINISTRATIVE AGENT AND LENDERS SHALL HAVE BEEN NOTIFIED.

 

(f)            THE GUARANTOR AGREES THAT NOTHING HEREIN SHALL AFFECT THE
RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR
SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION.

 

(g)           EXCEPT AS PROHIBITED BY LAW, THE GUARANTOR HEREBY WAIVES
ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION ANY SPECIAL,
EXEMPLARY, PUNITIVE, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND
OR NATURE WHATSOEVER OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL
DAMAGES.  THE GUARANTOR CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF THE ADMINISTRATIVE AGENT OR THE LENDERS
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE ADMINISTRATIVE AGENT OR THE
LENDERS WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER.  THE SCOPE OF THIS WAIVER IS
INTENDED TO BE ALL—ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED
IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION,
INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.

 

(h)           THE GUARANTOR HERETO ACKNOWLEDGES THAT THE WAIVERS SET
FORTH IN THIS SECTION 29 CONSTITUTE A MATERIAL INDUCEMENT TO ENTER
INTO A BUSINESS RELATIONSHIP, THAT THE ADMINISTRATIVE AGENT, THE LENDERS AND
EACH PARTY HAS ALREADY RELIED ON THESE WAIVERS IN ENTERING INTO OR ACCEPTING
THE BENEFITS OF THIS GUARANTEE, AND THAT EACH WILL CONTINUE TO RELY ON THESE
WAIVERS IN THEIR RELATED FUTURE DEALINGS. 
THE GUARANTOR HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED
THESE WAIVERS WITH ITS LEGAL COUNSEL AND KNOWINGLY AND VOLUNTARILY WAIVES ITS
JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

 

16

 

(i)            THE WAIVERS SET FORTH IN THIS SECTION 29 ARE
IRREVOCABLE, MEANING THAT THEY MAY NOT BE MODIFIED EITHER ORALLY OR IN
WRITING, AND THESE WAIVERS SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS TO THIS GUARANTEE OR ANY OF THE OTHER CREDIT
DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO ANY TRANSACTION
ENTERED INTO HEREUNDER OR THEREUNDER.  IN
THE EVENT OF LITIGATION, THIS GUARANTEE MAY BE FILED AS A WRITTEN CONSENT
TO A TRIAL BY THE COURT.

 

30.          Taxes.

 

The
provisions of Section 2.14 of the Credit Agreement shall be equally
applicable to the Guarantor and any payments made under this Guarantee.

 

31.          Recitals.

 

The
recital and introductory paragraphs hereof are a part hereof, form a basis for
this Guarantee and shall be considered prima  facie evidence of the facts and
documents referred to therein.

 

32.          Counterparts.

 

This
Guarantee may be executed in any number of counterparts and by different
parties hereto in separate counterparts (including by facsimile), each of which
when so executed shall be deemed to be an original and all of which when taken
together shall constitute one and the same agreement.

 

33.          Discretion.

 

Reference
herein or in any Credit Document to the Administrative Agent’s or the Lenders’
discretion shall mean, unless otherwise stated herein or therein, the
Administrative Agent’s or the Lenders’ sole and absolute discretion, and the
exercise of such discretion shall be final and conclusive.  In addition, whenever (a) either the
Administrative Agent or the Lenders has a decision or right of determination or
request, exercises any right given to it to agree, disagree, accept, consent,
grant waivers, take action or no action or to approve or disapprove or (b) any
arrangement or term is to be satisfactory or acceptable to or approved by (or
any similar language or terms) the Administrative Agent or the Lenders, as
applicable, the decision of the Administrative Agent or the Lenders, as
applicable, with respect thereto shall be in the sole and absolute discretion
of the Administrative Agent or the Lenders, as applicable, and such decision
shall be final and conclusive, except as may be otherwise specifically provided
herein.

 

34.          Recourse Against Certain Parties.

 

No
recourse under or with respect to any obligation, covenant or agreement
(including, without limitation, the payment of any fees or any other
obligations) of the Administrative Agent or the Lenders as contained in this
Guarantee, the Credit Documents or any other agreement, instrument or document
entered into by the Administrative Agent, the Lenders, or any such party
pursuant hereto or thereto or in connection herewith or therewith shall be had
against any administrator of the Administrative Agent, the Lenders or any
incorporator, Affiliate (direct or indirect), owner, member, partner,
stockholder, officer, director, employee, agent or attorney of the
Administrative Agent, the Lenders or of any such administrator, as such, by the
enforcement of any assessment or by any legal or equitable proceeding, by
virtue of any statute or otherwise; it being expressly agreed and understood
that the agreements of the Administrative Agent and the Lenders contained in
this Guarantee, the Credit Documents and all of the other agreements,
instruments and documents entered into by it pursuant hereto 

 

17

 

or
thereto or in connection herewith or therewith are, in each case, solely the
corporate obligations of the Administrative Agent and the Lenders and that no
personal liability whatsoever shall attach to or be incurred by any
administrator of the Administrative Agent, the Lenders or any incorporator,
owner, member, partner, stockholder, Affiliate (direct or indirect), officer,
director, employee, agent or attorney of the Administrative Agent, the Lenders
or of any such administrator, as such, or any other of them, under or by reason
of any of the obligations, covenants or agreements of the Administrative Agent
or the Lenders contained in this Guarantee, the Credit Documents or in any
other such instruments, documents or agreements, or that are implied therefrom,
and that any and all personal liability of every such administrator of the
Administrative Agent or the Lenders and each incorporator, owner, member,
partner, stockholder, affiliate, officer, director, employee, agent or attorney
of the Administrative Agent or the Lenders, or of any such administrator, or
any of them, for breaches by the Administrative Agent or the Lenders of any
such obligations, covenants or agreements, which liability may arise either at
common law or at equity, by statute or constitution, or otherwise, is hereby
expressly waived as a condition of and in consideration for the execution of
this Guarantee.  The provisions of this Section 34
shall survive the termination of this Guarantee.

 

35.          Set–offs.

 

In
addition to any rights and remedies of the Administrative Agent and the Lenders
provided by this Guarantee, the Credit Documents and by Requirements of Law,
the Administrative Agent and the Lenders shall have the right, without prior
notice to the Borrowers, the Guarantor, the Pledgors or any other Credit Party,
any such notice being expressly waived by the Guarantor to the extent permitted
by Requirements of Law, and regardless of the existence of any other
collateral, upon any amount becoming due and payable by the Guarantor to the
Administrative Agent and the Lenders hereunder, under the Credit Documents or
otherwise (whether at the stated maturity, by acceleration or otherwise) to set—off
and appropriate and apply against such amount any and all monies and other
Property and assets of the Guarantor, any and all deposits (general or special,
time or demand, provisional or final), in any currency, and any and all other
credits, Indebtedness, claims, securities, collateral, Property, assets or
proceeds of any of the foregoing in, as applicable, any currency, in each case
whether direct or indirect, absolute or contingent, matured or unmatured, and
in each case at any time held or owing by the Administrative Agent, the
Lenders, any of their Affiliates, any Person under the control of the
Administrative Agent, the Lenders and any successor or assign of the foregoing
to or for the credit or the account of the Guarantor, whether for safekeeping,
custody, pledge, transmission, collection or otherwise.  The Administrative Agent agrees promptly to
notify the Guarantor after any such set–off and application made by the
Administrative Agent or the Lenders, provided that the failure to give
such notice shall not affect the validity of such set–off and application.  ANY AND ALL RIGHTS TO REQUIRE THE
ADMINISTRATIVE AGENT AND THE LENDERS TO EXERCISE THEIR RIGHTS OR REMEDIES WITH
RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE AMOUNTS OWING TO THE
ADMINISTRATIVE AGENT AND THE LENDERS BY THE BORROWERS, THE GUARANTOR, THE
PLEDGORS OR ANY OTHER CREDIT PARTY UNDER THE CREDIT DOCUMENTS, PRIOR TO
EXERCISING ITS RIGHT OF SET–OFF WITH RESPECT TO SUCH MONIES, SECURITIES,
COLLATERAL, DEPOSITS, CREDITS OR OTHER PROPERTY OR ASSETS OF THE GUARANTOR, ARE
HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED BY THE GUARANTOR.

 

36.          Acknowledgments.

 

The
Guarantor hereby acknowledges that:

 

(a)           the Guarantor has been advised by counsel in the
negotiation, execution and delivery of this Guarantee and the related
documents;

 

18

 

(b)           neither the Administrative Agent nor any Lender has any
fiduciary relationship to the Guarantor, and the relationship between the
Administrative Agent and the Lenders and the Guarantor is solely that of surety
and creditor; and

 

(c)           no joint venture exists between or among any of the
Administrative Agent, the Lenders, the Guarantor and the Borrowers.

 

37.          [reserved].

 

38.          Third Party Beneficiary.

 

The
Lenders shall be third–party beneficiaries of each of the terms and provisions
of this Guarantee.  All rights of the
Administrative Agent hereunder, if not exercised by the Administrative Agent,
may be exercised by the Required Lenders.

 

[Remainder of Page Intentionally
Left Blank.]

 

19

 

IN
WITNESS WHEREOF, the undersigned has caused this Guarantee to be duly executed
as of the date first written above.

 

 

	
   

  	
  GKK 2 HERALD MEZZ LLC, a Delaware limited liability company,
  as a Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   By:

  	
  GKK 2 Herald Junior
  Mezz LLC, a Delaware limited liability company, its member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
     By:

  	
  GKK 2 Herald Sub Junior
  Mezz LLC, a Delaware limited liability company, its manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: GKK 2 Herald
  Manager LLC, a Delaware limited liability company, its manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
     By:

  	
  GKK Capital LP, a
  Delaware limited partnership, its sole member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: Gramercy Capital
  Corp., a Maryland corporation, its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert R. Foley

  
	
   

  	
  Name:

  	
  Robert R. Foley

  
	
   

  	
  Title:

  	
  Chief Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  420 Lexington Avenue

  
	
   

  	
  New York, New York
  10170

  
	
   

  	
  Telephone:

  	
  (212) 297-1002

  
	
   

  	
  Telecopy:

  	
  (212) 297-1090

  
	
   

  	
  Attention:

  	
  Bob FoleyExhibit 10.4

 

Execution Version

 

GKK 885 THIRD MEZZ LLC

GUARANTEE AGREEMENT

 

THIS
GUARANTEE AGREEMENT (as amended, modified, waived,
supplemented, extended, restated or replaced from time to time, this “Guarantee”), is made
as of the 7th day of April, 2009, by GKK 885
THIRD MEZZ LLC, a Delaware limited liability company (together with
its successors and permitted assigns, the “Guarantor”), as a guarantor, for the benefit of
the several banks and other financial institutions as are, or may from time to
time become parties to the Credit Agreement (as defined below) (each, together
with its successors and assigns, a “Lender” and, collectively, the “Lenders”), and WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking
association, as administrative agent for the Lenders hereunder (in such
capacity, together with its successors and assigns, the “Administrative Agent”).  Capitalized terms used but not defined herein
shall have the meanings given to such terms in the Credit Agreement (defined
below).

 

RECITALS:

 

WHEREAS,
under and subject to the terms of the Credit Agreement, dated as of July 18,
2008 (as amended, modified, restated, replaced, waived, substituted,
supplemented or extended from time to time, the “Credit Agreement”), by and among Gramercy
Warehouse Funding I LLC, a Delaware limited liability company (together with
its successors and permitted assigns, “GWF-I”), as a borrower, GKK Trading Warehouse I
LLC, a Delaware limited liability company (together with its successors and
permitted assigns, “GKK Trading”
and together with GWF-I and any other Person that becomes a borrower under the
Credit Documents, the “Borrowers”),
as a borrower, Gramercy Capital Corp., a Maryland corporation (together with
its successors and permitted assigns, “Parent”), as a guarantor, GKK Capital LP, a
Delaware limited partnership (together with its successors and permitted
assigns, “GKK Capital”),
as a guarantor, Gramercy Investment Trust, a Maryland real estate investment
trust (together with its successors and permitted assigns, “Gramercy REIT”), as a
guarantor, GKK Trading Corp., a Delaware
corporation (together with its successors and permitted assigns, “GTC”, and, together
with Parent, GKK Capital and Gramercy REIT, the “Parent Guarantors”),
the Lenders and the Administrative Agent, the Borrowers and the Lenders have
agreed that the Lenders may make certain loans to the Borrowers subject to the
terms and conditions of the Credit Agreement;

 

WHEREAS,
simultaneously with the execution of this Guarantee, the Borrowers, the Parent
Guarantors, and the Administrative Agent will be executing and delivering an
Amendment to the Credit Agreement (the “Amendment”);

 

WHEREAS,
the Guarantor and GKK 2 Herald Mezz LLC are indirect, wholly owned subsidiaries
of the Parent and, as such, the Guarantor will benefit directly or indirectly
from the transactions contemplated under the Credit Agreement, as amended by
the Amendment; and

 

WHEREAS,
it was a condition precedent to the effectiveness of the Amendment that the
Guarantor shall have executed and delivered this Guarantee in connection with
the reimbursement obligations of GKK Capital which currently exist or may
subsequently arise in connection with the Administrative Agent’s Clean,
Irrevocable Standby Letter of Credit Number SM226417W, issued on June 22,
2007 for the benefit of GKK Capital as applicant and naming GFW-1 and Gramercy
Warehouse Funding II as beneficiaries (collectively, the “Guarantee
Obligations”).

 

 

NOW,
THEREFORE, based upon the foregoing Recitals and other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Guarantor, intending to be legally bound, hereby agrees as
follows:

 

1.                                      Defined
Terms. 
The following term is defined for purposes of this Guarantee as follows:

 

“Pledged Collateral” shall have the
meaning assigned thereto in the Pledge Agreement.

 

2.                                      Guarantee
of Payment and Performance.

 

(a)                                  The
Guarantor hereby unconditionally and irrevocably guarantees to the
Administrative Agent and the Lenders the prompt and complete payment and
performance by each Borrower when due (whether at the stated maturity, by
acceleration or otherwise) of the Guarantee Obligations.

 

(b)                                 The
Guarantor further agrees to pay any and all reasonable expenses (including,
without limitation, all reasonable fees and disbursements of counsel) which may
be paid or incurred by the Administrative Agent and any Lender in enforcing, or
obtaining advice of counsel in respect of, any rights with respect to, or
collecting, any or all of the Guarantee Obligations and/or enforcing any rights
with respect to, or collecting against, the Guarantor under this
Guarantee.  This Guarantee shall remain
in full force and effect until the Obligations are paid in full,
notwithstanding that from time to time prior thereto the Borrowers may be free
from any Obligations.

 

(c)                                  No
payment or payments made by any Borrower or any other Person or received or
collected by the Administrative Agent or any Lender from any Borrower or any
other Person by virtue of any action or proceeding or any set-off or
appropriation or application, at any time or from time to time, in reduction of
or in payment of the Obligations shall be deemed to modify, reduce, release or
otherwise affect the liability of the Guarantor hereunder which shall,
notwithstanding any such payment or payments, remain liable for the amount of
the Obligations until the Obligations are paid in full.

 

(d)                                 The
Guarantor agrees that whenever, at any time, or from time to time, the
Guarantor shall make any payment to the Administrative Agent for the ratable
benefit of the Lenders on account of the Guarantor’s liability hereunder, the
Guarantor will notify the Administrative Agent in writing that such payment is
made under this Guarantee for such purpose.

 

3.                                      Release
of Collateral, Parties Liable, etc.

 

The
Guarantor agrees that (a) any or all of the Collateral, the Pledged
Collateral and other collateral, security and Property now or hereafter held
for the Guarantee or the Guarantee Obligations may be exchanged, released,
terminated, modified, sold, assigned, participated, pledged, compromised,
surrendered or otherwise transferred or disposed of from time to time; (b) except
as expressly set forth in the Credit Documents, the Administrative Agent and
the Lenders shall have no obligation to protect, perfect, secure or insure any
Collateral, the Pledged Collateral or any collateral, security, Property,
Liens, interests or encumbrances now or hereafter held for the Guarantee or the
Guarantee Obligations or the Properties subject thereto; (c) the time,
place, manner or terms of payment of the Guarantee Obligations may be changed
or extended, in whole or in part, to a time certain or otherwise, and may be
renewed or accelerated, in whole or in part; (d) the Borrowers, the
Pledgors, the other Credit Parties and other Persons may be granted indulgences
generally; (e) any of the provisions of the Credit Agreement and the other
Credit Documents and the Guarantee Obligations may be modified, amended,
waived, 

 

2

 

supplemented, replaced or restated from time to time; (f) any
party liable for the payment of the Guarantee Obligations, including, without
limitation, other guarantors, may be granted indulgences or released; and (g) any
deposit balance for the credit of the Borrowers or any other Person liable for
the payment of the Guarantee Obligations, including, without limitation, other
guarantors, or liable upon any security therefor, may be released, in whole or
in part, at, before and/or after the stated, extended or accelerated maturity
of the Guarantee Obligations, all of the foregoing in clauses (a) through (g) without
notice to or further assent by the Guarantor, who shall remain bound thereon,
notwithstanding any such exchange, compromise, surrender, extension, renewal,
acceleration, modification, indulgence, release or other act.

 

4.                                      Waiver
of Rights.

 

The
Guarantor expressly waives:  (a) notice
of acceptance of this Guarantee by the Administrative Agent, the Lenders or any
other guarantor and of all extensions of credit, loans or advances to or
purchases from the Borrowers by the Administrative Agent or the Lenders; (b) presentment
and demand for payment of any of the Guarantee Obligations; (c) protest
and notice of dishonor or of default to the Guarantor or to any other Person
with respect to the Guarantee Obligations or with respect to any collateral,
security or Property therefor; (d) notice of the Administrative Agent or
the Lenders obtaining, amending, substituting for, releasing, waiving, modifying,
extending, replacing or restating all or any portion of the Guarantee
Obligations, the Credit Agreement, any other Credit Document, other guarantees
or any Lien now or hereafter securing the Guarantee Obligations or the
Guarantee, or the Administrative Agent or the Lenders subordinating,
compromising, discharging, terminating or releasing such Liens; (e) notice
of the execution and delivery by the Borrowers, the Administrative Agent, the
Lenders or any other Person of any other loan, purchase, credit or security
agreement or document or of the Borrowers’ or such other Person’s execution and
delivery of any promissory notes or other documents arising under or in
connection with the Credit Documents or in connection with any purchase of the
Borrowers’ or such other Person’s Property or assets; (f) notice of any
kind concerning the assets, liabilities, financial condition, creditworthiness,
businesses, prospects or other affairs of the Borrowers or any other Person; (g) notice
of the occurrence of any breach by the Borrowers, the Pledgors, any other
Credit Party or any other Person or of any Event of Default; (h) notice of
the Administrative Agent’s or the Lenders’ transfer, disposition, assignment,
sale, pledge or participation of the Guarantee Obligations, the Collateral, the
Pledged Collateral, the Credit Documents, the Mortgage Loan Documents, or any
collateral, security or Property for the Guarantee or the Guarantee Obligations
or any portion of the foregoing; (i) notice of the sale or foreclosure (or
posting or advertising for sale or foreclosure) of all or any portion of any
Collateral, the Pledged Collateral or any collateral, security or Property for
the Guarantee or the Guarantee Obligations; (j) notice of the protest,
proof of non–payment or default by the Borrowers or any other Person; (k) any
other action at any time taken or omitted by the Administrative Agent or the
Lenders, and, generally, all demands and notices of every kind in connection
with this Guarantee, the Credit Documents, the Guarantee Obligations, the
Collateral, the Pledged Collateral, any collateral, security or Property for
the Guarantee or the Guarantee Obligations, the Mortgage Loan Documents, any
documents or agreements evidencing, securing or relating to any of the Guarantee
or the Guarantee Obligations and the obligations hereby guaranteed; (l) all
other notices to which the Guarantor might otherwise be entitled; (m) demand
for payment under this Guarantee; and (n) any right to assert against the
Administrative Agent or the Lenders, as a defense, counterclaim, set–off or
cross–claim, any defense (legal or equitable), set–off, counterclaim or claim
of any kind or nature whatsoever that the Guarantor may now or hereafter have
against the Administrative Agent or the Lenders (other than payment in full of
the Guarantee Obligations), the Borrowers or any other Person.  It shall not be necessary for the
Administrative Agent or the Lenders (and the Guarantor hereby waives any rights
which the Guarantor may have to require the Administrative Agent or the
Lenders), in order to enforce the obligations of the Guarantor hereunder, to (i) institute
suit, enforce its rights or exhaust its remedies against the Borrowers, the
Pledgors, any other Credit Party, others liable on 

 

3

 

the Guarantee Obligations, the Obligors or any other
Person, (ii) enforce the Administrative Agent’s or the Lenders’ rights or
exhaust its remedies under or with respect to the Mortgage Loan Documents and
the collateral and Property secured thereby, the Collateral, the Pledged
Collateral or any collateral, security or Property which shall ever have been
given to secure the Guarantee or the Guarantee Obligations, (iii) enforce
the Administrative Agent’s or the Lenders’ rights against any other guarantors
of the Guarantee Obligations, (iv) join the Borrowers, others liable on
the Guarantee Obligations or any other Person in any action seeking to enforce
this Guarantee, (v) mitigate damages or take any other action to reduce, collect
or enforce the Guarantee Obligations or (vi) resort to any other means of
obtaining payment of the Guarantee Obligations.

 

5.                                      Guarantee
Absolute and Unconditional.

 

The
obligations of the Guarantor under this Guarantee are absolute and unconditional,
irrespective of the value, genuineness, validity, regularity or enforceability
of the obligations of the Borrowers under the Credit Agreement and, to the
fullest extent permitted by applicable law, irrespective of any other
circumstance whatsoever that might otherwise constitute a legal or equitable
discharge or defense of a surety or guarantor, it being the intent of this Section 5
that the obligations of the Guarantor hereunder shall be absolute and
unconditional under any and all circumstances, and a separate action or actions
may be brought and prosecuted against the Guarantor to enforce this Guarantee,
irrespective of whether any action is brought against the Borrowers, the
Pledgors, any other guarantors or any other Credit Party or whether the Borrowers,
the Pledgors, the other guarantors or any other Credit Party are joined in any
such action or actions.  The validity of
this Guarantee, the obligations of the Guarantor hereunder and the
Administrative Agent’s and the Lenders’ rights and remedies for the enforcement
of the foregoing shall in no way be terminated, abated, reduced, released,
modified, changed, discharged, diminished, affected, limited or impaired in any
manner whatsoever by the happening from time to time of any event or condition
of any kind whatsoever, including, without limitation, any of the following
(and the Guarantor hereby waives any common law, equitable, statutory,
constitutional, regulatory or other rights (including rights to notice) which
the Guarantor might have as a result of or in connection with any of the
following):  (a) the assertion or
non–assertion by the Administrative Agent or the Lenders of any of the rights
or remedies available to the Administrative Agent or the Lenders pursuant to
the provisions of the Credit Documents, the Mortgage Loan Documents or pursuant
to any Requirement of Law; (b) the waiver by the Administrative Agent or
the Lenders of, or the failure of the Administrative Agent or the Lenders to
enforce, or the lack of diligence by the Administrative Agent or the Lenders in
connection with, the enforcement of any of its rights or remedies under the
Credit Documents, the Mortgage Loan Documents, the Collateral, the Pledged
Collateral or any collateral, security or Property for the Guarantee or the Guarantee
Obligations; (c) the granting by the Administrative Agent or the Lenders
of (or failure by the Administrative Agent or the Lenders to grant) any
indulgence, forbearance, adjustment, compromise, consent, approval, waiver or
extension of time; (d) the occurrence of any Default or Event of Default
under the Credit Agreement, or the occurrence of any similar event (howsoever
described) under any agreement or instrument referred to therein; (e) any
delay, failure or inability of any Borrower, Pledgor, Guarantor or any other
Credit Party in respect of any of the Guarantee Obligations to perform, willful
or otherwise, any provision of the Credit Agreement beyond any applicable cure
periods; (f) any action or failure to act by the Administrative Agent or
the Lenders that adversely affects the Guarantor’s right of subrogation arising
by reason of any performance by the Guarantor of this Guarantee; (g) any
suit or other action brought by, or any judgment in favor of, any beneficiaries
or creditors of, any Borrower, Pledgor, Guarantor, other Credit Party or any
other Person for any reason whatsoever, including any suit or action in any way
disaffirming, repudiating, rejecting or otherwise calling into question any
issue, matter or thing in respect of the Credit Agreement; (h) any lack or
limitation of status or of power, incapacity or disability of any Borrower, the
Pledgor, Guarantor or any other Credit Party in respect of any of the Guarantee
Obligations; (i) the exercise by the Administrative Agent or the Lenders of
or failure to exercise any so–called self–help remedies; (j) any act,
omission or condition that might in any manner 

 

4

 

or to any extent vary, alter, increase, extend or
continue the risk to the Guarantor or might otherwise operate as a discharge or
release of the Guarantor under Requirements of Law; (k) any full or
partial release or discharge of or accord and satisfaction with respect to
liability for the Guarantee Obligations, or any part thereof, of the Borrowers,
the Guarantor, the Pledgors, any other Credit Party, any co–guarantors or any
other Person now or hereafter liable, whether directly or indirectly, jointly,
severally, or jointly and severally, to pay, perform, guarantee or assure the
payment of the Guarantee Obligations, or any part thereof; (l) the
impairment, modification, change, release, discharge or limitation of the
liability of the Borrowers, the Guarantor, the Pledgors, any other Credit
Party, any Obligor or any Person liable for or obligated on the Guarantee
Obligations, or any of their estates in bankruptcy, resulting from or pursuant
to the bankruptcy or insolvency of any of the foregoing or the application of
the Insolvency Laws or of or any decision of any court of the United States or
any state thereof; (m) any present or future Requirements of Law or order
of any Governmental Authority (de jure or de facto) purporting to reduce, amend or otherwise
affect the Guarantee Obligations or to vary any terms of payment, satisfaction
or discharge thereof; (n) the waiver, compromise, settlement, release,
extension, acceleration, amendment, change, modification, substitution,
replacement, reduction, increase, alteration, rearrangement, renewal or
termination of the terms of the Guarantee Obligations, the Credit Documents,
the Collateral, the Pledged Collateral, any collateral, security or Property
for the Guarantee or the Guarantee Obligations, the Mortgage Loan Documents,
any or all of the obligations, covenants or agreements of the Borrowers, the
Pledgors, the other Credit Parties, the Obligors or any other Person under the
Credit Documents or Mortgage Loan Documents (except by satisfaction in full of
all Guarantee Obligations) or of the Guarantor under this Guarantee and/or any
failure of the Administrative Agent or the Lenders to notify the Guarantor of
any of the foregoing; (o) the extension of the time for satisfaction,
discharge or payment of the Guarantee Obligations or any part thereof owing or
payable by the Borrowers or any other Person under the Credit Documents or of
the time for performance of any other obligations, covenants or agreements
under or arising out of this Guarantee or the extension or renewal of any
thereof; (p) any existing or future offset, claim or defense (other than
payment in full of the Guarantee Obligations) of the Borrowers or any other
Person against the Administrative Agent or the Lenders or against payment of
the Guarantee Obligations, whether such offset, claim or defense arises in
connection with the Guarantee Obligations (or the transactions creating same)
or otherwise; (q) the taking or acceptance or the existence of any other
guarantee of or collateral, security or Property for the Guarantee Obligations
in favor of the Administrative Agent, the Lenders or any other Person specified
in the Credit Documents or the enforcement or attempted enforcement of such
other guarantee, collateral, security or Property; (r) any sale, lease,
sublease or transfer of or Lien on all or a portion of the assets or Property of
the Borrowers, the Pledgors, the Guarantor or any other Credit Party, or any
changes in the shareholders, partners or members of the Borrowers, the
Pledgors, the Guarantor or any other Credit Party, or any reorganization,
consolidation or merger of the Borrowers, the Pledgors, the Guarantor or any
other Credit Party; (s) any consolidation or amalgamation of the
Borrowers, the Pledgors, the Guarantor or any other Credit Party with, any
merger of the Borrowers, the Pledgors, the Guarantor or any other Credit Party
with or into, or any transfer by the Borrowers, the Pledgors, the Guarantor or
any other Credit Party of all or substantially all their assets to, another
Person, any change in the legal or beneficial ownership of ownership interests
issued by the Borrowers, the Pledgors, the Guarantor or any other Credit Party,
or any other change whatsoever in the objects, capital structure, constitution
or business of the Borrowers, the Pledgors, the Guarantor or any other Credit
Party; (t) the invalidity, illegality or unenforceability of all or any
part of the Guarantee Obligations, the Credit Documents, the Collateral, the
Pledged Collateral, any collateral, security or Property for the Guarantee or
the Guarantee Obligations, the Mortgage Loan Documents or any document or
agreement executed in connection with the foregoing, for any reason whatsoever,
including, without limitation, the fact that (1) the Guarantee
Obligations, or any part thereof, exceeds the amount permitted by Requirements
of Law or violates usury laws, (2) the act of creating the Guarantee
Obligations, the Mortgage Assets, the Collateral, the Pledged Collateral, any
collateral, security or Property for the Guarantee or the Guarantee Obligations
or any part of the foregoing is ultra  vires, (3) the officers or
representatives executing the Mortgage Loan Documents or Credit Documents or
otherwise 

 

5

 

creating the Guarantee Obligations, the Mortgage
Assets, the Collateral, the Pledged Collateral or any collateral, security or
Property for the Guarantee or the Guarantee Obligations acted in excess of
their authority, (4) the Borrowers, the Pledgors, any other Credit Party,
any Obligor or any other Person has valid defenses, claims or offsets (whether
at law, in equity or by agreement) which render the Guarantee Obligations
wholly or partially uncollectible, (5) the creation, performance or
repayment of the Guarantee Obligations, the Mortgage Assets, the Collateral,
the Pledged Collateral or any collateral, security or Property for the
Guarantee or the Guarantee Obligations (or the execution, delivery and
performance of any Credit Document, Mortgage Loan Document or document or
instrument representing part of the Guarantee Obligations, the Mortgage Assets,
the Collateral, the Pledged Collateral, any collateral, security or Property
for the Guarantee or the Guarantee Obligations or executed in connection with
the Guarantee Obligations, the Mortgage Assets, the Collateral, the Pledged
Collateral or any collateral, security or Property for the Guarantee or the
Guarantee Obligations, or given to secure the repayment of the Guarantee
Obligations, the Mortgage Assets or the other Collateral) is illegal,
uncollectible or unenforceable or (6) any Mortgage Loan Document, any
Credit Document or any other document, agreement or instrument has been forged
or otherwise is irregular or not genuine or authentic; (u) any release,
termination, sale, pledge, participation, transfer, surrender, exchange,
subordination, deterioration, waste, loss or impairment (including, without
limitation, negligent, willful, unreasonable or unjustifiable impairment) of
the Collateral, the Pledged Collateral or any collateral, security or Property
at any time existing in connection with, or assuring or securing payment of,
all or any part of the Guarantee or the Guarantee Obligations; (v) the
failure of the Administrative Agent, the Lenders or any other Person to
exercise diligence or reasonable care in the preservation, protection,
enforcement, sale or other handling or treatment of all or any part of the
Collateral, the Pledged Collateral or any other collateral, security or
Property for the Guarantee or the Guarantee Obligations, including, but not
limited to, any neglect, delay, omission, failure or refusal of the
Administrative Agent or the Lenders (1) to take or prosecute any action
for the collection of any of the Guarantee Obligations, the Pledged Collateral,
any Collateral or any collateral, security or Property for the Guarantee or the
Guarantee Obligations, (2) to foreclose, or initiate any action to
foreclose, or, once commenced, prosecute to completion any action to foreclose,
upon any Collateral, the Pledged Collateral or any security, collateral or
Property for the Guarantee or Guarantee Obligations, or (3) to take or
prosecute any action in connection with any instrument or agreement evidencing
or securing all or any part of the Guarantee Obligations; (w) the fact
that the Collateral, the Pledged Collateral or any collateral, security,
Property or Lien contemplated or intended to be given, created or granted as
security for the repayment of the Guarantee or the Guarantee Obligations, or
any part thereof, shall not be properly perfected or created, or shall prove to
be unenforceable or subordinate to any other Lien; (x) any payment by the
Borrowers or any other Person to the Administrative Agent or the Lenders is
held to constitute a preference under Insolvency Laws, or for any reason the
Administrative Agent or the Lenders are required to refund such payment or pay
such amount to any such Borrower or other Person; or (y) any event or
action that would, in the absence of this Section 5, result in the
full or partial release, discharge or relief of the Guarantor from the
performance or observance of any obligation, covenant or agreement contained in
this Guarantee or any other agreement, whether or not such event or action
increases the likelihood that the Guarantor will be required to pay the
Guarantee Obligations pursuant to the terms hereof or thereof and whether or
not such event or action prejudices the Guarantor, it being the unambiguous and
unequivocal intention of the Guarantor that the Guarantor shall be obligated to
pay the Guarantee Obligations when due, notwithstanding any occurrence,
circumstance, event, action or omission whatsoever, whether contemplated or
uncontemplated, and whether or not otherwise or particularly or expressly
described herein, which obligation shall be deemed satisfied only upon the full
and final indefeasible payment and satisfaction of the Guarantee Obligations.

 

6.                                      Primary
Liability of the Guarantor.

 

Without
limiting the foregoing provisions, the Guarantor agrees that this Guarantee may
be enforced by the Administrative Agent and the Lenders without the necessity
at any time of resorting to 

 

6

 

or exhausting any other security or collateral and
without the necessity at any time of having recourse to any of the Credit
Documents, the Collateral, the Pledged Collateral or any collateral, security
or Property now or hereafter securing the Guarantee or the Guarantee
Obligations or otherwise, and the Guarantor hereby waives the right to require
the Administrative Agent or the Lenders to proceed against the Borrowers, the
Pledgors, any other Credit Party, any Obligor or any other Person (including a
co–guarantor) or to require the Administrative Agent or the Lenders to pursue
any other remedy or enforce any other right. 
The Guarantor further agrees that the Guarantor shall have no right of
subrogation, reimbursement or indemnity whatsoever against any Person, or any
right of recourse to the Collateral, the Pledged Collateral or any collateral,
security or Property for the Guarantee or the Guarantee Obligations, so long as
any such Guarantee Obligations remain outstanding.  The Guarantor further agrees that nothing
contained herein shall prevent the Administrative Agent or the Lenders from
suing on the Credit Agreement or any of the other Credit Documents or
foreclosing its security interest in or Lien on any Collateral, the Pledged
Collateral or any collateral, security or Property now or hereafter securing
the Guarantee or the Guarantee Obligations or from exercising any other rights
available to it under the Credit Agreement or any of the other Credit Documents
or any other instrument of security if none of the Borrowers, the Pledgors, the
Guarantor or any other Credit Party timely perform the obligations of the
Borrowers, the Pledgors, all other Credit Parties or other Persons thereunder,
and the exercise of any of the aforesaid rights and the completion of any
foreclosure proceedings shall not constitute a discharge of the Guarantor’s
obligations hereunder; it being the purpose and intent of the Guarantor that
the Guarantor’s obligations hereunder shall be absolute, independent and
unconditional under any and all circumstances. 
The Guarantor recognizes, acknowledges and agrees that the Guarantor may
be required to pay the Guarantee Obligations in full (subject to the limit set
forth in Section 2) without assistance or support of any other
Person, and the Guarantor has not been induced to enter into this Guarantee on
the basis of a contemplation, belief, understanding or agreement that other
parties will be liable to pay or perform the Guarantee Obligations, or that the
Administrative Agent or the Lenders will look to other parties to pay or
perform the Guarantee Obligations.  The
Guarantor recognizes, acknowledges and agrees that it is not entering into this
Guarantee in reliance on, or in contemplation of the benefits of, the validity,
enforceability, collectability or value of the Collateral, the Pledged
Collateral or any of the collateral, security or Property for the Guarantee or
the Guarantee Obligations or of the validity, enforceability or collectability
of this Guarantee against any other guarantor.

 

7.                                      Payments.

 

The
Guarantor hereby agrees that the Guarantee Obligations will be paid to the
Administrative Agent for the ratable benefit of the Lenders without set-off or
counterclaim in U.S. Dollars at the address specified in writing by the
Administrative Agent.

 

8.                                      Attorneys’
Fees and Costs of Collection.

 

The
Guarantor hereby agrees to pay all reasonable costs, fees and expenses
(including reasonable attorneys’ fees) incurred by the Administrative Agent or
the Lenders to pursue collection, to preserve or enforce its rights under this
Guarantee, or to intervene, to sue for enforcement of the terms of this
Guarantee or to file a petition, complaint, answer, motion or other pleading in
any suit or proceeding relating to this Guarantee, and, in such event, all of
the attorneys’ fees, costs and expenses relating thereto and all other amounts
(if any) owed by the Guarantor under this Guarantee (other than the Guarantee Obligations)
shall be an additional liability of the Guarantor to the Administrative Agent
and the Lenders (over and above any limitation set forth in Section 2,
if any), payable on demand.  The
obligations contained in this Section 8 shall survive the termination
of this Guarantee.

 

7

 

9.                                      Security
Interests and Setoff.

 

The
Guarantor agrees that in the event the Guarantor fails to pay its obligations
hereunder when due and payable under this Guarantee, the Administrative Agent
and the Lenders shall be entitled to (a) any and all remedies available to
it including, without limitation, all rights of setoff and (b) the benefit
of all Liens heretofore, now and at any time or times hereafter granted by the
Guarantor or any Borrower to the Administrative Agent and the Lenders, if any,
to secure the Guarantor’s obligations hereunder.

 

10.                               Term
of Guarantee.

 

This
Guarantee shall continue in full force and effect until the Guarantee
Obligations are fully and indefeasibly paid, performed and discharged and the
Credit Documents are terminated.  This
Guarantee covers the Guarantee Obligations whether presently outstanding or
arising subsequent to the date hereof, including all amounts advanced by the
Administrative Agent or the Lenders in stages or installments.  Notwithstanding the foregoing, this Guarantee
shall continue to be effective, or be reinstated, as the case may be, and any
payment of the Guarantee Obligations hereunder shall be reinstated, if at any
time payment, or any part thereof, of any of the Guarantee Obligations is
rescinded or must otherwise be restored or returned by the Administrative Agent
or the Lenders as a preference, fraudulent conveyance or otherwise upon or in
connection with an Insolvency, Act of Insolvency, Insolvency Proceeding,
bankruptcy, dissolution, liquidation or reorganization with respect to the
Borrowers or any other Person obligated on or for the Guarantee Obligations, or
upon or as a result of the appointment of a receiver, intervenor or conservator
of, or trustee or similar officer for, any of the Borrowers or such other
Person or any substantial part of such Borrowers’ or such other Person’s
Property or assets, or otherwise, all as though such payments had not been
made; provided that in the event payment of all or any part of the
Guarantee Obligations is rescinded or must be restored or returned, all costs
and expenses (including, without limitation, any legal fees and disbursements)
incurred by the Administrative Agent or the Lenders in defending and enforcing
such reinstatement shall be deemed to be included as a part of the Guarantee
Obligations.

 

11.                               Representations
and Warranties.

 

(a)                                  The
Guarantor represents and warrants to, and covenants with, the Administrative
Agent and the Lenders, as of the date of this Guarantee, and shall be deemed to
restate as of each Borrowing Date, that:

 

(i)                                   it
is duly organized, validly existing and in good standing as a corporation,
limited partnership, limited liability company or real estate investment trust
under the laws of the jurisdiction of its organization or formation, and is
duly qualified to do business and is in good standing in all jurisdictions in
which the character of its Property or assets, the nature of its business or
the performance of its obligations under any agreement to which it is a party
or is bound makes such qualification necessary, except for any failure to
qualify outside of the jurisdiction of organization or formation that would not
have a Material Adverse Effect;

 

(ii)                                its
execution and delivery of, performance under and compliance with this Guarantee
will not violate its Authority Documents or constitute a default (or an event
that, with notice or lapse of time, or both, would constitute a default) under,
or result in a material breach of, any material Contractual Obligation,
Indebtedness or Guarantee Obligation to which it is a party or by which it is
bound;

 

(iii)                             its execution and delivery
of, performance under and compliance with this Guarantee will not violate any law,
treaty, rule or regulation or determination of an arbitrator, a 

 

8

 

court or other governmental authority, applicable to or binding upon
the Guarantor or any of its property or to which the Guarantor or any of its
property is subject (“Requirement
of Law”), or any provision of any security issued by the
Guarantor or of any agreement, instrument or other undertaking to which the
Guarantor is a party or by which it or any of its property is bound (“Contractual Obligation”),
and will not result in or require the creation or imposition of any Lien on any
of the properties or revenues of the Guarantor pursuant to any Requirement of
Law or Contractual Obligation of the Guarantor;

 

(iv)                              the
Guarantor has the legal capacity and the legal right to execute and deliver
this Guarantee and to perform the Guarantor’s obligations hereunder;

 

(v)                                 it
has the full power and authority to enter into and consummate all transactions
contemplated by this Guarantee, has duly authorized the execution, delivery and
performance of this Guarantee, and has duly executed and delivered this
Guarantee;

 

(vi)                              this
Guarantee constitutes a valid, legal and binding obligation of the Guarantor,
enforceable against it in accordance with the terms hereof, subject to (A) Insolvency
Laws affecting the enforcement of creditors’ rights generally, and (B) general
principles of equity, regardless of whether such enforcement is considered in a
proceeding in equity or at law;

 

(vii)                           it is not in violation of,
and its execution and delivery of, performance under and compliance with this
Guarantee shall not constitute a violation of, its Authority Documents, any
Requirement of Law, any order or decree of any court or arbiter, or any order,
regulation or demand of any Governmental Authority;

 

(viii)                      no consent, approval, order or
authorization of, filing with, or other act by or in respect of, any arbitrator
or Governmental Authority and no consent of any other Person (including,
without limitation, any creditor of the Guarantor) is required in connection
with the execution, delivery, performance, validity or enforceability of this
Guarantee;

 

(ix)                              to
the knowledge of the Guarantor, no litigation, investigation or proceeding of
or before any arbitrator or Governmental Authority is pending or threatened by
or against the Guarantor or against any of the Guarantor’s properties or
revenues with respect to this Guarantee or any of the transactions contemplated
hereby;

 

(x)                                 to
the knowledge of the Guarantor, none of the Guarantor, the Borrowers, the
Pledgors, any other Credit Party or any principal, director, partner, manager
or owner of the foregoing (other than unaffiliated minority owners of publicly
traded common stock) has ever been convicted of a crime or is the subject of
any currently pending or threatened criminal proceeding that, in any particular
case or taken collectively, could have a Material Adverse Effect;

 

(xi)                              except
as disclosed in writing to the Administrative Agent prior to the date hereof,
the Guarantor has filed or caused to be filed all tax returns which, to the
knowledge of the Guarantor, are required to be filed and has paid all taxes
shown to be due and payable on said returns or on any assessments made against
the Guarantor or any of the Guarantor’s Property and all other taxes, fees or
other charges imposed on the Guarantor or any of the Guarantor’s Property by
any Governmental Authority (other than any the amount or validity of which are
currently being contested in good faith by appropriate proceedings); no tax
lien has been filed, and, to the knowledge of the Guarantor, no claim is being
asserted, with respect to any such tax, fee or other charge;

 

9

 

(xii)                           the Guarantor is not the
subject of any Insolvency Proceeding;

 

(xiii)                       the recitals to this Guarantee
are true and correct; and

 

(xiv)                       the Guarantor has received
valuable consideration, fair value, fair consideration or reasonable equivalent
value for the Guarantee Obligations, and the Guarantee Obligations (A) will
not render the Guarantor not Solvent, (B) will not leave the Guarantor
with an unreasonably small amount of capital to conduct its business, and (C) will
not cause the Guarantor to have incurred debts (or to have intended to have incurred
debts) beyond its ability to pay such debts as they mature.

 

(b)                                 The
Guarantor acknowledges and agrees that it is not relying on the Borrowers’
financial condition or collateral as an inducement to enter into this
Guarantee.  The Guarantor agrees that the
Administrative Agent and the Lenders shall have no obligation to investigate
the financial condition or affairs of the Borrowers for the benefit of the
Guarantor or to advise the Guarantor of any matter relating to or arising under
the Credit Agreement or any of the other Credit Documents or any fact
respecting, or any change in, the financial condition or affairs of the
Borrowers that might come to the knowledge of the Administrative Agent or the
Lenders at any time, whether or not the Administrative Agent or the Lenders
know or believe or have reason to know or believe that any such fact or change
is unknown to the Guarantor or might (or does) materially increase the risk of
the Guarantor as guarantor or might (or would) affect the willingness of the
Guarantor to continue as guarantor with respect to the Guarantee Obligations.

 

(c)                                  The
Guarantor further represents and warrants to the Administrative Agent and the
Lenders that the financial statements (if any) and other financial information
(if any) of the Guarantor delivered to the Administrative Agent prior to the
Closing Date are true and correct and fairly represent in all material respects
the financial condition of the Guarantor on the date of the delivery of such
information and that there has been no Material Adverse Effect since such date.

 

(d)                                 The
representations and warranties of the Guarantor set forth in this Section 11
shall survive the execution and delivery of this Guarantee and shall inure to
the benefit of the Persons for whose benefit they were made for so long as this
Guarantee is in effect.  Upon discovery
by any party hereto of a breach of any such representations and warranties, the
party discovering such breach shall give prompt written notice thereof to each
other party.

 

12.                               Covenants.

 

(a)                                  Buy
Back of Capital Stock.  The Guarantor
shall not be permitted to buy back any of its Capital Stock while this
Guarantee remains in effect.

 

(b)                                 Limitation
on Conveyances.  The Guarantor shall
not sell, assign, transfer or otherwise convey, in a single transaction or in a
series of transactions, all or any substantial portion of its assets.

 

(c)                                  [reserved]

 

(d)                                 Negative
Pledge.  The Guarantor shall not
create, incur, assume or suffer to exist any Lien on any of its Property.

 

(e)                                  The
covenants of the Guarantor set forth in this Section 12 shall
survive the execution and delivery of this Guarantee and shall inure to the
benefit of the Persons for whose benefit 

 

10

 

they were made for so long as
this Guarantee is in effect.  Upon
discovery by any party hereto of a breach of any such covenants, the party
discovering such breach shall give prompt written notice thereof to each other
party.

 

13.                               Additional
Liability of Guarantor.

 

If the
Guarantor is or becomes liable for any Indebtedness owing by the Borrowers to
the Administrative Agent or the Lenders by endorsement or otherwise than under
this Guarantee, such liability shall not be in any manner impaired or reduced
hereby but shall have all and the same force and effect it would have had if
this Guarantee had not existed and the Guarantor’s liability hereunder shall
not be in any manner impaired or reduced thereby.

 

14.                               Cumulative
Rights.

 

All
rights of the Administrative Agent and the Lenders hereunder or otherwise
arising under the Credit Documents or any documents executed in connection with
or as security for the Guarantee Obligations or under Requirements of Law are
separate and cumulative and may be pursued separately, successively or concurrently,
or not pursued, without affecting, limiting or impairing any other right of the
Administrative Agent and the Lenders and without limiting, affecting or
impairing the liability of the Guarantor.

 

15.                               Assignments.

 

(a)                                  Assignments
by the Administrative Agent or the Lenders. 
This Guarantee is intended for and shall inure to the benefit of the
Administrative Agent, the Lenders and each and every Person who shall from time
to time be or become the owner or holder of any of the Guarantee Obligations,
and each and every reference herein to the Administrative Agent and the Lenders
shall include and refer to each and every successor, assignee, pledgee and
participant of the Administrative Agent and the Lenders and the successors,
assignees and participants of the foregoing at any time holding or owning any
part of or interest in any part of the Guarantee Obligations.  This Guarantee shall be transferable and
negotiable by the Administrative Agent and the Lenders with the same force and
effect, and to the same extent, that the Guarantee Obligations are transferable
and negotiable, it being understood and stipulated that, upon assignment or any
such transfer by the Administrative Agent or the Lenders of any of the
Guarantee Obligations, the legal holder or owner of said Guarantee Obligations
(or a part thereof or interest therein thus transferred or assigned) shall
(except as otherwise stipulated by the Administrative Agent or the Lenders in
its assignment) have and may exercise all of the rights granted to the Administrative
Agent and the Lenders under this Guarantee to the extent of that part of or
interest in the Guarantee Obligations thus assigned or so transferred to said
Person.  The Guarantor expressly waives
notice of any such transfer or assignment of the Guarantee Obligations, or any
part thereof, or of the rights of the Administrative Agent and the Lenders
hereunder.  The Guarantor acknowledges
and agrees that any action taken hereunder shall not release or discharge this
Guarantee or any obligations of the Guarantor hereunder.

 

(b)                                 Assignments
by Guarantor.  This Guarantee may not
be assigned, and the Guarantor’s agreements, duties, obligations and covenants
hereunder may not be delegated, in whole or in part by the Guarantor.  All agreements, duties, obligations and
covenants of the Guarantor hereunder shall bind and shall be enforceable
against the Guarantor’s successors and assigns.

 

11

 

16.          Application of Payments.

 

The
Administrative Agent and the Lenders may apply any payments received by them
from any source against such portion of the Guarantee Obligations and in such
priority and fashion as they may deem appropriate in their sole and absolute
discretion.

 

17.          Counterclaims; Setoff.

 

The
Guarantor waives all rights to interpose any claims, deduction or counterclaims
of any kind, nature or description in any action or proceeding instituted by
the Administrative Agent or the Lenders with respect to this Guarantee, the
Guarantee Obligations, the Collateral, the Pledged Collateral, the collateral,
security or Property for the Guarantee or the Guarantee Obligations or any
matter arising from or relating to any of the foregoing, except compulsory
counterclaims.  The Guarantor hereby
waives any right of setoff it may have or to which it may be entitled under
this Guarantee, the Credit Documents or Requirements of Law from time to time
against the Administrative Agent or the Lenders or their assets or
Property.  Notwithstanding anything to
the contrary contained in this Guarantee, until the Guarantee Obligations have
been indefeasibly paid in full, the Guarantor hereby unconditionally and
irrevocably waives, releases and abrogates any and all rights it may now or
hereafter have under any agreement, at law or in equity (including, without
limitation, any law subrogating the Guarantor to the rights of the
Administrative Agent or the Lenders), to assert any claim against or seek
contribution, indemnification or any other form of reimbursement from the
Borrowers, the Pledgors, any other Credit Party or any other Person liable for
payment of any or all of the Guarantee Obligations for any payment made by the
Guarantor under or in connection with this Guarantee or otherwise.

 

18.          Bankruptcy Code Waiver.

 

In the
event that a Borrower becomes a debtor in any proceeding under the Bankruptcy
Code, the Guarantor shall not be deemed to be a “creditor” (as defined in Section 101
of the Bankruptcy Code) of such Borrower, by reason of the existence of this
Guarantee, and in connection herewith, the Guarantor hereby waives any such
right as a “creditor” under the Bankruptcy Code.  This waiver is given to induce the
Administrative Agent and the Lenders to enter into the transactions
contemplated by the Credit Documents. 
After the Guarantee Obligations are paid in full and there shall be no
obligations or liabilities under this Guarantee outstanding, this waiver shall
be deemed to be terminated.

 

19.          The Borrowers’ and Pledgor’s
Actions.

 

No
encumbrance, assignment, leasing, subletting, sale or other transfer by a
Borrower or a Pledgor of any of the Borrowers’ or the Pledgors’ assets or
Property shall operate to extinguish or diminish the liability of the Guarantor
under this Guarantee.

 

20.          Subordination.

 

(a)           As used in this Guarantee, the term “Guarantor Claims”
shall mean all debts, liabilities and other Indebtedness of the Borrowers, the
Pledgors, the Guarantor, any other Credit Party or any other Person obligated
to the Administrative Agent, the Lenders or any other Person specified under
any Credit Document to the Guarantor, whether such debts, liabilities and other
Indebtedness now exist or are hereafter incurred or arise, or whether the
obligations of such Borrower, Pledgor, Guarantor, other Credit Party or such
other Person thereon be direct, contingent, primary, secondary, several, joint
and several, or otherwise, and irrespective of whether such debts, liabilities
or other Indebtedness be evidenced by note, contract, open account or
otherwise, and irrespective of the Person or Persons in whose favor such debts,
liabilities or other Indebtedness may, at their inception, have been, or may 

 

12

 

hereafter be created, or the manner in which
they have been or may hereafter be acquired by the Guarantor.  The Guarantor Claims shall include, without
limitation, all rights and claims of the Guarantor against the Borrowers, the
Pledgors, any other guarantor, other Credit Parties or other Persons (arising
as a result of subrogation or otherwise) as a result of the Guarantor’s payment
of all or a portion of the Guarantee Obligations.  All Guarantor Claims are and shall be
subordinate to the Guarantee Obligations.

 

(b)           In the event of any Insolvency Proceedings involving the
Guarantor as debtor, the Administrative Agent and the Lenders shall have the
right to prove its claim in any such proceeding so as to establish its rights
hereunder and receive directly from the receiver, trustee or other court
custodian dividends and any payments which would otherwise be payable upon
Guarantor Claims to the extent of any sums owed by the Guarantor
hereunder.  The Guarantor hereby assigns
such dividends and payments to the Administrative Agent as agent for the
Lenders.  Should the Administrative Agent
as agent for the Lenders receive, for application upon the Guarantee
Obligations, any such dividend or payment which is otherwise payable to the
Guarantor, and which, as between the Borrowers, the Pledgors, any other
guarantor or any other Person described in clause (a) above on the
one hand and the Guarantor on the other, shall constitute a credit upon the
Guarantor Claims, then upon payment to the Administrative Agent as agent for
the Lenders in full of the Guarantee Obligations, the Guarantor shall become
subrogated to the rights of the Administrative Agent and the Lenders to the
extent that such payments to the Administrative Agent as agent for the Lenders
on the Guarantor Claims have contributed toward the liquidation of the
Guarantee Obligations, and such subrogation shall be with respect to that
proportion of the Guarantee Obligations which would have been unpaid if the
Administrative Agent as agent for the Lenders had not received dividends or
payments upon the Guarantor Claims.

 

(c)           In the event that, notwithstanding anything to the
contrary in this Guarantee, the Guarantor should receive any funds, payment,
claim or distribution which is prohibited by this Guarantee, the Guarantor
agrees to hold in trust for the Administrative Agent as agent for the Lenders
an amount equal to the amount of all funds, payments, claims or distributions
so received, and agrees that it shall have absolutely no dominion over the
amount of such funds, payments, claims or distributions so received except to
pay them promptly to the Administrative Agent as agent for the Lenders, and the
Guarantor covenants promptly to pay the same to the Administrative Agent as
agent for the Lenders.

 

(d)           The Guarantor agrees that any claims, charges or Liens
against the Borrowers, the Pledgors, any other guarantor, other Credit Parties
or any other Persons described under clause (a) above and/or such
Borrower’s, such Pledgor’s, any other guarantor’s, any other Credit Party’s or
such other Person’s assets and Property with respect to the Guarantor Claims
shall be and remain inferior and subordinate to any claims, charges or Liens of
the Administrative Agent or the Lenders against the Borrowers, the Pledgors,
the Guarantor, any other Credit Party or any such other Person and/or such
Borrower’s, such Pledgor’s, the Guarantor’s, any such other Credit Party’s or
such other Person’s assets and Property, regardless of whether such claims,
charges or Liens in favor of the Guarantor, the Administrative Agent or the
Lenders presently exist or are hereafter created or attach.  Without the prior written consent of the
Administrative Agent and the Lenders, the Guarantor shall not (i) exercise
or enforce any creditor’s right it may have against the Borrowers, the
Pledgors, any other guarantor, any other Credit Party or any other Person
described under clause (a) above, or (ii) foreclose,
repossess, sequester or otherwise take steps or institute any action or
proceedings (judicial or otherwise, including, without limitation, the
commencement of, or joinder in, any Insolvency Proceeding) to enforce any
claims, charges, Liens, mortgage, deeds of trust, security interests,
collateral rights, judgments or other encumbrances against the Borrowers, the Pledgors,
the Guarantor, any other Credit Party or such other Person or the assets or
Property of the Borrowers, the Pledgors, the Guarantor, any other Credit Party
or such other Person held by the Guarantor.

 

13

 

21.          Commercial Transaction.

 

To
induce the Administrative Agent and the Lenders to enter into this Guarantee
and the Transactions evidenced by and secured by the Credit Documents, the
Guarantor agrees that said Transactions are commercial and not consumer
transactions.

 

22.          Books and Records.

 

In
addition to any additional rights under the Credit Agreement and the other
Credit Documents, the Administrative Agent and the Lenders shall have the right
at the Guarantor’s cost, and the Guarantor shall permit and shall cooperate
with the Administrative Agent and the Lenders in arranging for, at any
reasonable time from time to time, the Administrative Agent, the Lenders and/or
their representatives, to review and audit all books, records and financial
statements (including all supporting data and other records) of the Guarantor,
and the Guarantor shall make all such books of account and records available
for such examination, at the office where the same are regularly maintained.  The Administrative Agent and the Lenders
shall have a right to copy, duplicate and make abstracts from such books and
records as the Administrative Agent and/or the Lenders may require.

 

23.          Notices, Etc.

 

All
notices and other communications provided for hereunder shall, unless otherwise
stated herein, be in writing (including telex communication and communication
by facsimile copy) and shall be governed by Section 10.2 of the
Credit Agreement.  The failure of the
Administrative Agent or the Lenders to give any notice required hereunder (if
any) shall not affect the liability or obligations of the Guarantor
hereunder.  Unless otherwise expressly
provided in this Guarantee, reference to any notice, request, approval, consent
or determination provided for, permitted or required under the terms of this
Guarantee with respect to the Borrowers, the Guarantor, the Administrative
Agent or the Lenders means, in order for such notice, request, approval,
consent or determination to be effective hereunder, such notice, request,
approval or consent must be in writing.

 

24.          No Waiver.

 

The
Administrative Agent shall not by any act (except by a written instrument
pursuant to Section 25 hereof), delay, indulgence, omission or
otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced
in any default or event of default or in any breach of any of the terms and
conditions hereof.  No failure to
exercise, nor any delay in exercising, on the part of the Administrative Agent,
any right, power or privilege hereunder shall operate as a waiver thereof.  No single or partial exercise of any right,
power or privilege hereunder shall preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.  A waiver by the Administrative Agent of any
right or remedy hereunder on any one occasion shall not be construed as a bar
to any right or remedy which the Administrative Agent would otherwise have on
any future occasion.

 

25.          Amendments and Waivers.

 

No
amendment, waiver or other modification of any provision of this Guarantee
shall be effective unless amended in accordance with the requirements of Section 10.1
of the Credit Agreement.  Any waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given.

 

14

 

26.          Severability; Integration.

 

Each
provision of this Guarantee shall be valid, binding and enforceable to the
fullest extent permitted by Requirements of Law.  In case any provision in or obligation under
this Guarantee shall be invalid, illegal or unenforceable in any jurisdiction
(either in its entirety or as applied to any Person, fact, circumstance, action
or inaction), the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other
jurisdiction or as applied to any other Person, fact, circumstance, action or
inaction, shall not in any way be affected or impaired thereby.  This Guarantee contains the final and
complete integration of all prior expressions by the Guarantor hereto with
respect to the subject matter hereof and shall constitute the entire agreement
of the Guarantor hereto with respect to the subject matter hereof, superseding
all prior oral or written understandings and there are no promises or
representations by the Administrative Agent or any Lender relative to the
subject matter hereof not reflected herein.

 

27.          Heading and Exhibits.

 

The
headings herein are for purposes of references only and shall not otherwise
affect the meaning or interpretation of any provision hereof.  The schedules, exhibits and annexes (if any)
attached hereto and referred to herein shall constitute a part of this
Guarantee and are incorporated into this Guarantee for all purposes.

 

28.          Governing Law.

 

THIS
GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

 

29.          Waivers.

 

(a)           THE GUARANTOR KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVES ANY RIGHT TO ASSERT A COUNTERCLAIM, OTHER THAN A COMPULSORY
COUNTERCLAIM, IN ANY ACTION OR PROCEEDING BROUGHT AGAINST IT BY THE
ADMINISTRATIVE AGENT, THE LENDERS OR ANY OF THEIR AFFILIATES OR AGENTS.

 

(b)           TO THE EXTENT PERMITTED BY REQUIREMENTS OF LAW, THE
GUARANTOR KNOWINGLY, VOLUNTARILY AND INTENTIONALLY HEREBY WAIVES ANY RIGHT TO
HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT,
TORT, OR OTHERWISE, BETWEEN THE PARTIES HERETO ARISING OUT OF, CONNECTED WITH,
RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP BETWEEN ANY OF THEM IN CONNECTION
WITH THIS GUARANTEE, THE CREDIT DOCUMENTS, THE TRANSACTIONS CONTEMPLATED HEREBY
OR ANY DEALINGS, COURSE OF DEALINGS, COURSE OF CONDUCT AMONG THEM OR ANY
STATEMENTS (WRITTEN OR ORAL) OR OTHER ACTIONS OF ANY PARTY, AND THE GUARANTOR
WILL NOT SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A
JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. 
INSTEAD, ANY SUCH DISPUTE RESOLVED IN COURT WILL BE RESOLVED IN A BENCH
TRIAL WITHOUT A JURY.

 

(c)           ANY LEGAL ACTION OR PROCEEDING AGAINST THE GUARANTOR
HERETO WITH RESPECT TO THIS GUARANTEE OR ANY OTHER CREDIT DOCUMENT MAY BE
BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES 

 

15

 

FOR THE SOUTHERN DISTRICT OF NEW YORK, AND,
BY EXECUTION AND DELIVERY OF THIS GUARANTEE, THE GUARANTOR HEREBY IRREVOCABLY
ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY AND ASSETS, GENERALLY AND
UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF A
PARTY TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST A PARTY IN ANY
OTHER JURISDICTION.

 

(d)           THE GUARANTOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID
ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS GUARANTEE OR
ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (c) ABOVE
AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY
SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

(e)           THE GUARANTOR AGREES THAT SERVICE OF PROCESS IN ANY SUCH
ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY
REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL),
POSTAGE PREPAID, TO THE GUARANTOR AT THE GUARANTOR’S ADDRESS SET FORTH UNDER
THE GUARANTOR’S SIGNATURE BELOW OR AT SUCH OTHER ADDRESS OF WHICH THE
ADMINISTRATIVE AGENT AND LENDERS SHALL HAVE BEEN NOTIFIED.

 

(f)            THE GUARANTOR AGREES THAT NOTHING HEREIN SHALL AFFECT THE
RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR
SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION.

 

(g)           EXCEPT AS PROHIBITED BY LAW, THE GUARANTOR HEREBY WAIVES
ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION ANY SPECIAL,
EXEMPLARY, PUNITIVE, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND
OR NATURE WHATSOEVER OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL
DAMAGES.  THE GUARANTOR CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF THE ADMINISTRATIVE AGENT OR THE LENDERS
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE ADMINISTRATIVE AGENT OR THE
LENDERS WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER.  THE SCOPE OF THIS WAIVER IS
INTENDED TO BE ALL–ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED
IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION,
INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.

 

(h)           THE GUARANTOR HERETO ACKNOWLEDGES THAT THE WAIVERS SET
FORTH IN THIS SECTION 29 CONSTITUTE A MATERIAL INDUCEMENT TO ENTER
INTO A BUSINESS RELATIONSHIP, THAT THE ADMINISTRATIVE AGENT, THE LENDERS AND
EACH PARTY HAS ALREADY RELIED ON THESE WAIVERS IN ENTERING INTO OR ACCEPTING
THE BENEFITS OF THIS GUARANTEE, AND THAT EACH WILL CONTINUE TO RELY ON THESE
WAIVERS IN THEIR RELATED FUTURE DEALINGS. 
THE GUARANTOR HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED
THESE WAIVERS WITH ITS LEGAL COUNSEL AND KNOWINGLY AND VOLUNTARILY WAIVES ITS
JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

 

16

 

(i)            THE WAIVERS SET FORTH IN THIS SECTION 29 ARE
IRREVOCABLE, MEANING THAT THEY MAY NOT BE MODIFIED EITHER ORALLY OR IN
WRITING, AND THESE WAIVERS SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS TO THIS GUARANTEE OR ANY OF THE OTHER CREDIT
DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO ANY TRANSACTION
ENTERED INTO HEREUNDER OR THEREUNDER.  IN
THE EVENT OF LITIGATION, THIS GUARANTEE MAY BE FILED AS A WRITTEN CONSENT
TO A TRIAL BY THE COURT.

 

30.          Taxes.

 

The
provisions of Section 2.14 of the Credit Agreement shall be equally
applicable to the Guarantor and any payments made under this Guarantee.

 

31.          Recitals.

 

The
recital and introductory paragraphs hereof are a part hereof, form a basis for
this Guarantee and shall be considered prima  facie evidence of the facts and
documents referred to therein.

 

32.          Counterparts.

 

This
Guarantee may be executed in any number of counterparts and by different
parties hereto in separate counterparts (including by facsimile), each of which
when so executed shall be deemed to be an original and all of which when taken
together shall constitute one and the same agreement.

 

33.          Discretion.

 

Reference
herein or in any Credit Document to the Administrative Agent’s or the Lenders’
discretion shall mean, unless otherwise stated herein or therein, the
Administrative Agent’s or the Lenders’ sole and absolute discretion, and the
exercise of such discretion shall be final and conclusive.  In addition, whenever (a) either the
Administrative Agent or the Lenders has a decision or right of determination or
request, exercises any right given to it to agree, disagree, accept, consent,
grant waivers, take action or no action or to approve or disapprove or (b) any
arrangement or term is to be satisfactory or acceptable to or approved by (or
any similar language or terms) the Administrative Agent or the Lenders, as
applicable, the decision of the Administrative Agent or the Lenders, as
applicable, with respect thereto shall be in the sole and absolute discretion
of the Administrative Agent or the Lenders, as applicable, and such decision
shall be final and conclusive, except as may be otherwise specifically provided
herein.

 

34.          Recourse Against Certain Parties.

 

No
recourse under or with respect to any obligation, covenant or agreement
(including, without limitation, the payment of any fees or any other
obligations) of the Administrative Agent or the Lenders as contained in this
Guarantee, the Credit Documents or any other agreement, instrument or document
entered into by the Administrative Agent, the Lenders, or any such party
pursuant hereto or thereto or in connection herewith or therewith shall be had
against any administrator of the Administrative Agent, the Lenders or any
incorporator, Affiliate (direct or indirect), owner, member, partner,
stockholder, officer, director, employee, agent or attorney of the
Administrative Agent, the Lenders or of any such administrator, as such, by the
enforcement of any assessment or by any legal or equitable proceeding, by
virtue of any statute or otherwise; it being expressly agreed and understood
that the agreements of the Administrative Agent and the Lenders contained in
this Guarantee, the Credit Documents and all of the other agreements,
instruments and documents entered into by it pursuant hereto 

 

17

 

or thereto or in connection herewith or therewith are,
in each case, solely the corporate obligations of the Administrative Agent and
the Lenders and that no personal liability whatsoever shall attach to or be
incurred by any administrator of the Administrative Agent, the Lenders or any
incorporator, owner, member, partner, stockholder, Affiliate (direct or
indirect), officer, director, employee, agent or attorney of the Administrative
Agent, the Lenders or of any such administrator, as such, or any other of them,
under or by reason of any of the obligations, covenants or agreements of the
Administrative Agent or the Lenders contained in this Guarantee, the Credit
Documents or in any other such instruments, documents or agreements, or that
are implied therefrom, and that any and all personal liability of every such
administrator of the Administrative Agent or the Lenders and each incorporator,
owner, member, partner, stockholder, affiliate, officer, director, employee, agent
or attorney of the Administrative Agent or the Lenders, or of any such
administrator, or any of them, for breaches by the Administrative Agent or the
Lenders of any such obligations, covenants or agreements, which liability may
arise either at common law or at equity, by statute or constitution, or
otherwise, is hereby expressly waived as a condition of and in consideration
for the execution of this Guarantee.  The
provisions of this Section 34 shall survive the termination of this
Guarantee.

 

35.          Set–offs.

 

In
addition to any rights and remedies of the Administrative Agent and the Lenders
provided by this Guarantee, the Credit Documents and by Requirements of Law,
the Administrative Agent and the Lenders shall have the right, without prior
notice to the Borrowers, the Guarantor, the Pledgors or any other Credit Party,
any such notice being expressly waived by the Guarantor to the extent permitted
by Requirements of Law, and regardless of the existence of any other
collateral, upon any amount becoming due and payable by the Guarantor to the
Administrative Agent and the Lenders hereunder, under the Credit Documents or
otherwise (whether at the stated maturity, by acceleration or otherwise) to set–off
and appropriate and apply against such amount any and all monies and other
Property and assets of the Guarantor, any and all deposits (general or special,
time or demand, provisional or final), in any currency, and any and all other
credits, Indebtedness, claims, securities, collateral, Property, assets or
proceeds of any of the foregoing in, as applicable, any currency, in each case
whether direct or indirect, absolute or contingent, matured or unmatured, and
in each case at any time held or owing by the Administrative Agent, the
Lenders, any of their Affiliates, any Person under the control of the
Administrative Agent, the Lenders and any successor or assign of the foregoing
to or for the credit or the account of the Guarantor, whether for safekeeping,
custody, pledge, transmission, collection or otherwise.  The Administrative Agent agrees promptly to
notify the Guarantor after any such set–off and application made by the
Administrative Agent or the Lenders, provided that the failure to give
such notice shall not affect the validity of such set–off and application.  ANY AND ALL RIGHTS TO REQUIRE THE
ADMINISTRATIVE AGENT AND THE LENDERS TO EXERCISE THEIR RIGHTS OR REMEDIES WITH
RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE AMOUNTS OWING TO THE
ADMINISTRATIVE AGENT AND THE LENDERS BY THE BORROWERS, THE GUARANTOR, THE
PLEDGORS OR ANY OTHER CREDIT PARTY UNDER THE CREDIT DOCUMENTS, PRIOR TO
EXERCISING ITS RIGHT OF SET–OFF WITH RESPECT TO SUCH MONIES, SECURITIES,
COLLATERAL, DEPOSITS, CREDITS OR OTHER PROPERTY OR ASSETS OF THE GUARANTOR, ARE
HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED BY THE GUARANTOR.

 

36.          Acknowledgments.

 

The
Guarantor hereby acknowledges that:

 

(a)           the Guarantor has been advised by counsel in the
negotiation, execution and delivery of this Guarantee and the related
documents;

 

18

 

(b)           neither the Administrative Agent nor any Lender has any
fiduciary relationship to the Guarantor, and the relationship between the
Administrative Agent and the Lenders and the Guarantor is solely that of surety
and creditor; and

 

(c)           no joint venture exists between or among any of the
Administrative Agent, the Lenders, the Guarantor and the Borrowers.

 

37.          [reserved].

 

38.          Third Party Beneficiary.

 

The
Lenders shall be third–party beneficiaries of each of the terms and provisions
of this Guarantee.  All rights of the
Administrative Agent hereunder, if not exercised by the Administrative Agent,
may be exercised by the Required Lenders.

 

[Remainder of Page Intentionally
Left Blank.]

 

19

 

IN
WITNESS WHEREOF, the undersigned has caused this Guarantee to be duly executed
as of the date first written above.

 

	
   

  	
  GKK 885 THIRD MEZZ LLC., a Delaware limited liability company,
  as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: GKK 885 Third Junior Mezz LLC, a Delaware
  limited liability company, its member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: GKK 885 Third Manager LLC, a Delaware limited
  liability company, its manager

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By: GKK Capital LP, a Delaware limited partnership,
  its sole member

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By: Gramercy Capital Corp., a Maryland corporation,
  its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert R. Foley

  
	
   

  	
  Name:

  	
  Robert R. Foley

  
	
   

  	
  Title:

  	
  Chief Operating Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  420 Lexington Avenue

  
	
   

  	
  New York, New York
  10170

  
	
   

  	
  Telephone:

  	
  (212) 297-1002

  
	
   

  	
  Telecopy:

  	
  (212) 297-1090

  
	
   

  	
  Attention:

  	
  Bob Foley

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