Document:

Exhibit
10.2

 

$2,000,000,000

364-DAY CREDIT
AGREEMENT

dated as of June
26, 2007

among

iSTAR FINANCIAL INC.,

THE BANKS LISTED
HEREIN,

JPMORGAN CHASE
BANK, N.A.

as Administrative Agent,

CITICORP NORTH
AMERICA, INC., 

as Syndication Agent,

J.P. MORGAN
SECURITIES INC.

and

CITIGROUP GLOBAL MARKETS INC.,

as Joint Lead Arrangers and Joint Bookrunners

and

WACHOVIA BANK, NATIONAL
ASSOCIATION, 

and

BANK OF AMERICA, N.A.,

as Documentation Agents

 

Table
of Contents

	
  

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I DEFINITIONS

  	
  1

  
	
   

  	
   

  
	
  SECTION
  1.1.   Definitions

  	
  1

  
	
  SECTION
  1.2.   Accounting Terms and Determinations

  	
  18

  
	
  SECTION
  1.3.   Types of Borrowings

  	
  18

  
	
   

  	
   

  
	
  ARTICLE II THE CREDITS

  	
  18

  
	
   

  	
   

  
	
  SECTION
  2.1.   Commitments to Lend

  	
  18

  
	
  SECTION
  2.2.   Notice of Borrowing

  	
  19

  
	
  SECTION
  2.3.   Notice to Banks; Funding of Loans

  	
  19

  
	
  SECTION
  2.4.   Notes

  	
  20

  
	
  SECTION
  2.5.   Method of Electing Interest Rates

  	
  21

  
	
  SECTION
  2.6.   Interest Rates

  	
  22

  
	
  SECTION
  2.7.   Fees

  	
  23

  
	
  SECTION
  2.8.   Termination of Commitments and Maturity Date

  	
  23

  
	
  SECTION
  2.9.   Optional Prepayments

  	
  23

  
	
  SECTION
  2.10.   Mandatory Prepayments

  	
  24

  
	
  SECTION
  2.11.   General Provisions as to Payments

  	
  24

  
	
  SECTION
  2.12.   Funding Losses

  	
  25

  
	
  SECTION
  2.13.   Computation of Interest and Fees

  	
  25

  
	
  SECTION
  2.14.   Use of Proceeds

  	
  25

  
	
   

  	
   

  
	
  ARTICLE III CONDITIONS

  	
  25

  
	
   

  	
   

  
	
  SECTION
  3.1.   Closing

  	
  25

  
	
   

  	
   

  
	
  ARTICLE IV REPRESENTATIONS AND WARRANTIES

  	
  27

  
	
   

  	
   

  
	
  SECTION
  4.1.   Existence and Power

  	
  27

  
	
  SECTION
  4.2.   Power and Authority

  	
  27

  
	
  SECTION
  4.3.   No Violation

  	
  27

  
	
  SECTION
  4.4.   Financial Information

  	
  28

  
	
  SECTION
  4.5.   Litigation

  	
  28

  
	
  SECTION
  4.6.   Compliance with ERISA

  	
  28

  
	
  SECTION
  4.7.   Environmental

  	
  29

  
	
  SECTION
  4.8.   Taxes

  	
  29

  
	
  SECTION
  4.9.   Full Disclosure

  	
  29

  
	
  SECTION
  4.10.   Solvency

  	
  29

  
	
  SECTION
  4.11.   Use of Proceeds

  	
  30

  
	
  SECTION
  4.12.   Governmental Approvals

  	
  30

  
	
  SECTION
  4.13.   Investment Company Act

  	
  30

  
	
  SECTION
  4.14.   Principal Offices

  	
  30

  
	
  SECTION
  4.15.   REIT Status

  	
  30

  

 

 i
 

 

	
  SECTION 4.16.  
  Patents, Trademarks, etc.

  	
  30

  
	
  SECTION
  4.17.   Judgments

  	
  30

  
	
  SECTION
  4.18.   No Default

  	
  30

  
	
  SECTION
  4.19.   Licenses, etc.

  	
  31

  
	
  SECTION
  4.20.   Compliance With Law

  	
  31

  
	
  SECTION
  4.21.   No Burdensome Restrictions

  	
  31

  
	
  SECTION
  4.22.   Brokers’ Fees

  	
  31

  
	
  SECTION
  4.23.   Labor Matters

  	
  31

  
	
  SECTION
  4.24.   Insurance

  	
  31

  
	
  SECTION
  4.25.   Organizational Documents

  	
  31

  
	
  SECTION
  4.26.   Unencumbered Assets and Indebtedness

  	
  32

  
	
   

  	
   

  
	
  ARTICLE V AFFIRMATIVE AND NEGATIVE COVENANTS

  	
  32

  
	
   

  	
   

  
	
  SECTION
  5.1.   Information

  	
  32

  
	
  SECTION
  5.2.   Payment of Obligations

  	
  34

  
	
  SECTION
  5.3.   Maintenance of Property; Insurance; Leases

  	
  35

  
	
  SECTION
  5.4.   Maintenance of Existence

  	
  35

  
	
  SECTION
  5.5.   Compliance with Laws

  	
  35

  
	
  SECTION
  5.6.   Inspection of Property, Books and Records

  	
  35

  
	
  SECTION
  5.7.   Existence

  	
  36

  
	
  SECTION
  5.8.   Financial Covenants

  	
  36

  
	
  SECTION
  5.9.   Restriction on Fundamental Changes

  	
  36

  
	
  SECTION
  5.10.   Changes in Business

  	
  37

  
	
  SECTION
  5.11.   Borrower Status

  	
  37

  
	
  SECTION
  5.12.   Other Indebtedness

  	
  37

  
	
  SECTION
  5.13.   Forward Equity Contracts

  	
  37

  
	
   

  	
   

  
	
  ARTICLE VI DEFAULTS

  	
  37

  
	
   

  	
   

  
	
  SECTION
  6.1.   Events of Default

  	
  37

  
	
  SECTION
  6.2.   Rights and Remedies

  	
  40

  
	
  SECTION
  6.3.   Notice of Default

  	
  40

  
	
  SECTION
  6.4.   Distribution of Proceeds after Default

  	
  41

  
	
   

  	
   

  
	
  ARTICLE VII THE AGENTS; CERTAIN MATTERS RELATING TO
  THE LENDERS

  	
  41

  
	
   

  	
   

  
	
  SECTION
  7.1.   Appointment and Authorization

  	
  41

  
	
  SECTION
  7.2.   Agency and Affiliates

  	
  41

  
	
  SECTION
  7.3.   Action by Agents

  	
  41

  
	
  SECTION
  7.4.   Consultation with Experts

  	
  41

  
	
  SECTION
  7.5.   Liability of Agents

  	
  42

  
	
  SECTION
  7.6.   Indemnification

  	
  42

  
	
  SECTION
  7.7.   Credit Decision

  	
  42

  
	
  SECTION
  7.8.   Successor Agent

  	
  42

  
	
  SECTION
  7.9.   Consents and Approvals

  	
  43

  

 

 ii
 

 

	
  ARTICLE VIII CHANGE IN CIRCUMSTANCES

  	
  44

  
	
   

  	
   

  
	
  SECTION
  8.1.   Basis for Determining Interest Rate Inadequate or Unfair

  	
  44

  
	
  SECTION
  8.2.   Illegality

  	
  44

  
	
  SECTION
  8.3.   Increased Cost and Reduced Return

  	
  45

  
	
  SECTION
  8.4.   Taxes

  	
  46

  
	
  SECTION
  8.5.   Base Rate Loans Substituted for Affected Euro-Currency Loans

  	
  49

  
	
   

  	
   

  
	
  ARTICLE IX MISCELLANEOUS

  	
  49

  
	
   

  	
   

  
	
  SECTION
  9.1.   Notices

  	
  49

  
	
  SECTION
  9.2.   No Waivers

  	
  50

  
	
  SECTION
  9.3.   Expenses; Indemnification

  	
  50

  
	
  SECTION
  9.4.   Sharing of Set-Offs

  	
  51

  
	
  SECTION
  9.5.   Amendments and Waivers

  	
  52

  
	
  SECTION
  9.6.   Successors and Assigns

  	
  52

  
	
  SECTION
  9.7.   Governing Law; Submission to Jurisdiction; Judgment Currency

  	
  54

  
	
  SECTION
  9.8.   Counterparts; Integration; Effectiveness

  	
  55

  
	
  SECTION
  9.9.   WAIVER OF JURY TRIAL

  	
  55

  
	
  SECTION
  9.10.   Survival

  	
  56

  
	
  SECTION
  9.11.   Domicile of Loans

  	
  56

  
	
  SECTION
  9.12.   Limitation of Liability

  	
  56

  
	
  SECTION
  9.13.   Recourse Obligation

  	
  56

  
	
  SECTION
  9.14.   Confidentiality

  	
  56

  
	
  SECTION
  9.15.   USA Patriot Act

  	
  57

  
	
   

  
	
  SCHEDULE 1

  	
  Commitments

  
	
  SCHEDULE 1.1

  	
  Unencumbered Assets, Unsecured Debt

  
	
  SCHEDULE 1.1(b)

  	
  Permitted Lien

  
	
  SCHEDULE 4.4 (b)

  	
  Material Indebtedness

  
	
  SCHEDULE 4.6

  	
  Multiemployer Plans/Collective Bargaining Agreements

  
	
   

  	
   

  
	
  EXHIBIT A

  	
  Note

  
	
  EXHIBIT B

  	
  Transfer Supplement

  
	
  EXHIBIT C

  	
  Notice Addresses

  
			

 

 iii

364-DAY CREDIT
AGREEMENT

THIS AMENDED AND
RESTATED CREDIT AGREEMENT (this “Agreement”) dated as of June 26, 2007,
among iSTAR FINANCIAL INC. (the “Borrower”), the BANKS listed on the
signature pages hereof, JPMORGAN CHASE BANK, N.A., as Administrative Agent,
CITICORP NORTH AMERICA, INC., as Syndication Agent, J.P. MORGAN SECURITIES INC.
and CITIGROUP GLOBAL MARKETS INC., as Joint Lead Arrangers and Joint
Bookrunners, and WACHOVIA BANK, NATIONAL ASSOCIATION, and BANK OF AMERICA,
N.A., as Documentation Agents.

W I T N E S S E T
H

WHEREAS, the Borrower has requested that the Lenders
make an interim loan credit facility available to the Borrower in order to (i)
fund a portion of the acquisition costs of Fremont General Corporation’s
commercial real estate lending business and existing portfolio (the “Acquisition”)
pursuant to the Asset Purchase Agreement, and (ii) pay related costs and
expenses incurred in connection with the Acquisition and the financing thereof;

WHEREAS, the Lenders are willing to make such interim
loan credit facility available upon and subject to the terms and conditions
hereinafter set forth;

NOW, THEREFORE, in consideration of the promises and
the agreements hereinafter set forth and for good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto
hereby agree as follows:

ARTICLE I

DEFINITIONS

SECTION
1.1.                Definitions.
The following terms, as used herein, have the following meanings:

“Acquisition”
has the meaning set forth in the Recitals to this Agreement.

“Adjusted
Earnings” mean, for any period, Net Income allocable to holders of common
stock of the Borrower and “high performance unit” shareholders, as determined
in accordance with GAAP, plus depreciation, depletion, amortization, losses
from discontinued operations and extraordinary losses, but less gain from
discontinued operations and extraordinary gains, in each case allocable to
holders of common stock of the Borrower and “high performance unit”
shareholders, and the Borrower’s Share of Investment Affiliates’ income, as
determined in accordance with GAAP, depreciation, depletion and amortization.

“Administrative
Agent” shall mean JPMorgan Chase Bank, N.A, in its capacity as
Administrative Agent hereunder, and its permitted successors in such capacity
in accordance with the terms of this Agreement.

“Administrative
Questionnaire” means with respect to each Bank, an administrative
questionnaire in the form prepared by the Administrative Agent and submitted to
the Administrative Agent (with a copy to the Borrower) duly completed by such
Bank.

“Affiliate”,
as applied to any Person, means any other Person that directly or indirectly
controls, is controlled by, or is under common control with, that Person. For
purposes of this definition, “control” (including, with correlative meanings,
the terms “controlling”, “controlled by” and “under common control with”), as
applied to any Person, means the possession, directly or indirectly, of the
power to vote ten percent (10.0%) or more of the equity securities having
voting power for the election of directors of such Person or otherwise to
direct or cause the direction of the management and policies of that Person,
whether through the ownership of voting equity securities or by contract or
otherwise.

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

“Agreement”
means this Credit Agreement as the same may from time to time hereafter be
modified, supplemented or amended.

“Applicable
Lending Office” means with respect to any Bank, (i) in the case of its Base
Rate Loans, its Domestic Lending Office, and (ii) in the case of its
Euro-Currency Loans, its Euro-Currency Lending Office.

“Applicable
Margin” means with respect to each Loan, the respective percentages per
annum determined, at any time, based on the range into which Borrower’s Credit
Rating then falls, in accordance with the table set forth below. Any change in
Borrower’s Credit Rating causing it to move to a different range on the table
shall effect an immediate change in the Applicable Margin.  Borrower shall have not less than two (2)
Credit Ratings at all times. In the event that Borrower has two (2) or more
Credit Ratings that are not all equivalent, the Applicable Margin shall be
determined by the highest Credit Rating, provided that such highest Credit
Rating shall be from S&P or Moody’s; provided, further, that if such
highest Credit Rating is not from S&P or Moody’s, then the Applicable
Margin shall be determined by the highest Credit Rating from either S&P or
Moody’s. 

	
  Range of Borrower’s

  Credit Rating

  (S&P/Moody’s Ratings)

  	
   

  	
  Applicable Margin for

  Base Rate Loans

  (% per annum)

  	
   

  	
  Applicable Margin for

  Euro Currency Loans

  (% per annum)

  	
   

  
	
  >BBB+/Baa1

  	
   

  	
  0.00

  	
   

  	
  0.35

  	
   

  
	
  BBB+/Baa1

  	
   

  	
  0.00

  	
   

  	
  0.40

  	
   

  
	
  BBB/Baa2

  	
   

  	
  0.00

  	
   

  	
  0.50

  	
   

  
	
  BBB-/Baa3

  	
   

  	
  0.00

  	
   

  	
  0.75

  	
   

  
	
  <BB+/Ba1

  	
   

  	
  0.00

  	
   

  	
  1.00

  	
   

  

 

“Asset Purchase
Agreement” means that Asset Purchase Agreement dated as of May 21, 2007
between Fremont Investment & Loan and the Borrower.

“Assignee”
has the meaning set forth in Section 9.6(c).

 2
 

“Bank”
means each entity (other than Borrower) listed on the signature pages hereof,
each Assignee which becomes a Bank pursuant to Section 9.6(c), and their
respective successors.  For purposes of
this Agreement, neither J.P. Morgan Securities, Inc. nor Citigroup Global
Markets Inc. shall constitute a “Bank.”

“Bank Reply
Period” has the meaning set forth in Section 7.9.

“Bankruptcy
Code” shall mean Title 11 of the United States Code, entitled “Bankruptcy”,
as amended from time to time, and any successor statute or statutes.

“Base
Euro-Currency Rate” means a rate per annum equal to the rate for deposits
in Dollars with maturities comparable to the applicable Interest Period which
appears on Reuters Page LIBOR1 as of 11:00 a.m., London time, on the Quotation
Date; provided, however, if such rate does not appear on Reuters
Page LIBOR1 or the Reuters Screen which displays an average rate of the Banking
Federation of the European Union, as applicable, or if Reuters Page LIBOR1 is
no longer available, the “Base Euro-Currency Rate” applicable to a particular
Interest Period shall mean a rate per annum equal to the rate at which deposits
in Dollars, as the case may be, in an amount approximately equal to the
applicable Euro-Currency Loan(s), and with maturities comparable to the last
day of the Interest Period with respect to which such Base Euro-Currency Rate
is applicable, are offered in immediately available funds in the London
interbank market to the London office of the Administrative Agent by leading
banks in the London interbank market, at 11:00 a.m., London time on the
Quotation Date.

“Base Rate”
means, for any day, a rate per annum equal to the higher of (i) the Prime Rate
for such day and (ii) the sum of 0.50% plus the Federal Funds Rate for such
day.  Each change in the Base Rate shall
become effective automatically as of the opening of business on the date of
such change in the Base Rate, without prior written notice to Borrower or
Banks.

“Base Rate Loan”
means a Committed Loan in Dollars to be made by a Bank the interest on which is
calculated by reference to the Base Rate in accordance with the provisions of
this Agreement.

“Borrower”
means iStar Financial Inc., a Maryland corporation.

“Borrower’s
Share” means Borrower’s direct or indirect share of an Investment Affiliate
based upon Borrower’s percentage ownership (whether direct or indirect) of such
Investment Affiliate.

“Borrowing”
has the meaning set forth in Section 1.3.

“Business Day”
means any day except a Saturday, Sunday or other day on which commercial banks
in New York City are authorized by law to close.

“Capital Leases”
as applied to any Person, means any lease of any property (whether real,
personal or mixed) by that Person as lessee which, in conformity with GAAP, is
or should be accounted for as a capital lease on the balance sheet of that
Person.

 3
 

“Capital Stock”
has the meaning set forth in the definition of Net Offering Proceeds.

“Cash or Cash
Equivalents” shall mean (a) cash; (b) marketable direct obligations issued
or unconditionally guaranteed by the United States Government or issued by an
agency thereof and backed by the full faith and credit of the United States, in
each case maturing within one (1) year after the date of acquisition thereof;
(c) marketable direct obligations issued by any state of the United States of
America or any political subdivision of any such state or any public
instrumentality thereof maturing within ninety (90) days after the date of
acquisition thereof and, at the time of acquisition, having one of the two
highest ratings obtainable from any two of S & P, Moody’s or Fitch (or, if
at any time no two of the foregoing shall be rating such obligations, then from
such other nationally recognized rating services acceptable to Administrative
Agent ); (d) commercial paper (foreign and domestic) or master notes, other
than commercial paper or master notes issued by Borrower or any of its
Affiliates, and, at the time of acquisition, having a long-term rating of at
least A or the equivalent from S & P, Moody’s or Fitch and having a
short-term rating of at least A-1 and P-1 from S & P and Moody’s,
respectively (or, if at any time neither S & P nor Moody’s shall be rating
such obligations, then the highest rating from such other nationally recognized
rating services acceptable to Administrative Agent); (e) domestic and foreign
certificates of deposit or domestic time deposits or foreign deposits or
bankers’ acceptances (foreign or domestic) in Dollars that are issued by a bank
(I) which has, at the time of acquisition, a long-term rating of at least A or
the equivalent from S & P, Moody’s or Fitch and (II) if a domestic bank,
which is a member of the Federal Deposit Insurance Corporation; (f) overnight
securities repurchase agreements, or reverse repurchase agreements secured by
any of the foregoing types of securities or debt instruments, provided that the
collateral supporting such repurchase agreements shall have a value not less
than 101% of the principal amount of the repurchase agreement plus accrued
interest; and (g) money market funds invested in investments substantially all
of which consist of the items described in clauses (a) through (f) foregoing.

“Closing Date”
means the date on or after the Effective Date on which the conditions set forth
in Section 3.1 shall have been satisfied to the satisfaction of the
Administrative Agent.

“Code”
shall mean the Internal Revenue Code of 1986, as amended, and as it may be
further amended from time to time, any successor statutes thereto, and
applicable U.S. Department of Treasury regulations issued pursuant thereto in
temporary or final form.

“Committed Loan”
means a loan made by a Bank pursuant to Section 2.1; provided that, if
any such loan or loans (or portions thereof) are combined or subdivided
pursuant to a Notice of Interest Rate Election, the term “Committed Loan”
shall refer to the combined principal amount resulting from such combination or
to each of the separate principal amounts resulting from such subdivision, as
the case may be.

“Commitment”
means with respect to each Bank, the amount set forth on Schedule 1 next
to the name of such Bank as its commitment for Loans (and, for each Bank which
is an Assignee, the amount set forth in the Transfer Supplement entered into
pursuant to Section 9.6(c) as the Assignee’s Commitment), as such amount may be
reduced from time to time in connection with an assignment to an Assignee, and
as such amount may be increased in 

 4
 

connection with an
assignment from an Assignor.  The initial
aggregate amount of the Banks’ Commitments is $2,000,000,000.

“Consolidated
Subsidiary” means at any date any Subsidiary or other entity which is
consolidated with Borrower in accordance with GAAP.

“Consolidated
Tangible Net Worth” means, at any time, the tangible net worth of Borrower,
on a consolidated basis, determined in accordance with GAAP.

“Contingent
Obligation” as to any Person means, without duplication, (i) any contingent
obligation of such Person required to be shown on such Person’s balance sheet
in accordance with GAAP which is not otherwise Indebtedness, and (ii) any
obligation required to be disclosed in accordance with GAAP in the footnotes to
such Person’s financial statements, guaranteeing partially or in whole any
Non-Recourse Indebtedness, lease, dividend or other obligation, exclusive of
contractual indemnities (including, without limitation, any indemnity or
price-adjustment provision relating to the purchase or sale of securities or
other assets) and guarantees of non-monetary obligations (other than guarantees
of completion) which have not yet been called on or quantified, of such Person
or of any other Person.  The amount of
any Contingent Obligation described in clause (ii) shall be deemed to be (a)
with respect to a guaranty of interest or interest and principal, or operating
income guaranty, the Net Present Value of the sum of all payments required to
be made thereunder (which in the case of an operating income guaranty shall be
deemed to be equal to the debt service for the note secured thereby), through
(i) in the case of an interest or interest and principal guaranty, the stated
date of maturity of the obligation (and commencing on the date interest could
first be payable thereunder), or (ii) in the case of an operating income
guaranty, the date through which such guaranty will remain in effect, and (b)
with respect to all guarantees not covered by the preceding clause (a), an
amount equal to the stated or determinable amount of the primary obligation in
respect of which such guaranty is made or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof (assuming such
Person is required to perform thereunder) as recorded on the balance sheet and
on the footnotes to the most recent financial statements of Borrower required
to be delivered pursuant to Section 5.1 hereof. Notwithstanding anything
contained herein to the contrary, guarantees of completion shall not be deemed
to be Contingent Obligations unless and until a claim for payment or
performance has been made thereunder, at which time any such guaranty of
completion shall be deemed to be a Contingent Obligation in an amount equal to
any such claim.  Subject to the preceding
sentence, (i) in the case of a joint and several guaranty given by such Person
and another Person (but only to the extent such guaranty is recourse, directly
or indirectly to Borrower), the amount of the guaranty shall be deemed to be
100% thereof unless and only to the extent that such other Person has delivered
Cash or Cash Equivalents to secure all or any part of such Person’s guaranteed
obligations, (ii) in the case of joint and several guarantees given by a Person
in whom Borrower owns an interest (which guarantees are non-recourse to
Borrower), to the extent the guarantees, in the aggregate, exceed 15% of total
asset value, the amount which is the lesser of (x) the amount in excess of 15%
or (y) the amount of Borrower’s interest therein shall be deemed to be a
Contingent Obligation of Borrower, and (iii) in the case of a guaranty (whether
or not joint and several) of an obligation otherwise constituting Indebtedness
of such Person, the amount of such guaranty shall be deemed to be only that
amount in excess of the amount of the obligation 

 5
 

constituting Indebtedness
of such Person. All matters constituting “Contingent Obligations” shall be
calculated without duplication.

“Convertible
Securities” means evidences of shares of stock, limited or general
partnership interests or other ownership interests, warrants, options, or other
rights or securities which are convertible into or exchangeable for, with or
without payment of additional consideration, common shares of beneficial
interest of Borrower, either immediately or upon the arrival of a specified
date or the happening of a specified event.

“Credit Rating”
means a rating assigned by a Rating Agency to Borrower’s senior unsecured long
term indebtedness.

“Credit Tenant
Lease Assets” means properties substantially all of which are either (i)
leased to a governmental entity, (ii) leased to a tenant (or guaranteed by a
Person) with an Investment Grade Rating, or (iii) properties which, if
unavailable to a tenant, would materially impair the continued operation of
such tenant, including without limitation, headquarters facilities,
distribution centers, manufacturing facilities, or pools or classes of multiple
properties leased under blanket leases. In addition, “Credit Tenant Lease Assets” will be leased to
such corporate users primarily on a triple net basis, but may also be leased on
a double net, gross lease with expense stop, or bond-type basis.

“Debt Service”
means, for any period and without duplication, Interest Expense for such period
on all Indebtedness of Borrower on a consolidated basis.

“Default”
means any condition or event which with the giving of notice or lapse of time
or both would, unless cured or waived, become an Event of Default.

“Default Rate”
has the meaning set forth in Section 2.6(c).

“Defaulted
Assets” means (i) Credit Tenant Lease Assets that are vacant and not
subject to an agreement of lease, (ii) Credit Tenant Lease Assets where the
tenant is in monetary or other material default beyond any applicable notice
and grace periods, and (iii) Loan Assets where the applicable borrower is in
monetary or other material default beyond any applicable notice and grace
periods.

“Dollars”
and “$” means the lawful money of the United States.

“Domestic
Lending Office” means, as to each Bank, its office located at its address
in the United States set forth in its Administrative Questionnaire (or
identified in its Administrative Questionnaire as its Domestic Lending Office)
or such other office as such Bank may hereafter designate as its Domestic
Lending Office by notice to the Borrower and the Administrative Agent.

“EBITDA”
means, for any period on a consolidated basis in accordance with GAAP (i) Net
Income for such period, plus (ii) depreciation, depletion and amortization
expense and other non-cash items deducted in the calculation of Net Income for
such period, plus (iii) Interest Expense deducted in the calculation of Net
Income for such period, plus (iv) dividends and distributions from Borrower’s
Investment Affiliates (exclusive of returns of equity), minus 

 6
 

(v) income from any
Investment Affiliates, minus (vi) gains and losses from discontinued
operations, all of the foregoing without duplication. Notwithstanding the
foregoing, however, in the case of any Credit Tenant Lease Asset or Loan Asset
that is less than 100% owned, directly or indirectly, by the Borrower, only
Borrower’s pro rata share of the items set forth in clauses (i), (ii), (iii)
and (vi) shall be included in EBITDA.

“Effective Date”
means the date this Agreement becomes effective in accordance with Section 9.8.

“Environmental
Affiliate” means any partnership, joint venture, trust or corporation in which
an equity interest is owned directly or indirectly by the Borrower and, as a
result of the ownership of such equity interest, Borrower may have recourse
liability for Environmental Claims against such partnership, joint venture,
trust or corporation (or the property thereof).

“Environmental
Claim” means, with respect to any Person, any notice, claim, demand or
similar communication (written or oral) by any other Person alleging potential
liability of such Person for investigatory costs, cleanup costs, governmental
response costs, natural resources damage, property damages, personal injuries,
fines or penalties arising out of, based on or resulting from (i) the presence,
or release into the environment, of any Materials of Environmental Concern at
any location, whether or not owned by such Person or (ii) circumstances forming
the basis of any violation, or alleged violation, of any Environmental Law, in
each case (with respect to both (i) and (ii) above) as to which there is a
reasonable possibility of an adverse determination with respect thereto and
which, if adversely determined, would have a Material Adverse Effect on the
Borrower.

“Environmental
Laws” means any and all federal, state, and local statutes, laws, judicial
decisions, regulations, ordinances, rules, judgments, orders, decrees, plans,
injunctions, permits, concessions, grants, licenses, agreements and other
governmental restrictions relating to the environment, the effect of the
environment on human health or to emissions, discharges or releases of
Materials of Environmental Concern into the environment including, without
limitation, ambient air, surface water, ground water, or land, or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Materials of Environmental Concern or the
clean up or other remediation thereof.

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, or any
successor statute.

“ERISA Group”
means the Borrower, any Subsidiary, and all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under
common control and all members of an “affiliated service group” which, together
with the Borrower, or any Subsidiary, are treated as a single employer under
Section 414 of the Code or Section 4001(b)(1) of ERISA.

“Euro-Currency
Borrowing” has the meaning set forth in Section 1.3.

 7
 

“Euro-Currency
Business Day” means any Business Day on which banks are open for dealings
in deposits in Dollars in the London interbank market and any day on which
commercial banks are open for foreign exchange business in London.

“Euro-Currency
Lending Office” means, as to each Bank, its office, branch or affiliate
located at its address set forth in its Administrative Questionnaire (or
identified in its Administrative Questionnaire as its Euro-Currency Lending
Office) or such other office, branch or affiliate of such Bank as it may
hereafter designate as its Euro-Currency Lending Office by notice to the
Borrower and the Administrative Agent.

“Euro-Currency
Loan” means a Committed Loan to be made, the interest on which is
calculated by reference to the Euro-Currency Rates by a Bank in accordance with
the applicable Notice of Borrowing.

“Euro-Currency
Rate” means with respect to any Interest Period applicable to a
Euro-Currency Loan, an interest rate per annum obtained by dividing (i) the
Base Euro-Currency Rate applicable to that Interest Period by (ii) a percentage
equal to 100% minus the Euro-Currency Reserve Percentage in effect on
the relevant Euro-Currency Interest Rate Determination Date.

“Euro-Currency
Reserve Percentage” means, for any day, that percentage (expressed as a
decimal) which is in effect on such day, as prescribed by the Federal Reserve
Board (or any successor) under Regulation D, as Regulation D may be amended,
modified or supplemented, for determining the maximum reserve requirement for a
member bank of the Federal Reserve System in New York City with deposits
exceeding Five Billion Dollars in respect of “Eurocurrency liabilities” (or in
respect of any other category of liabilities which includes deposits by
reference to which the interest rate on Euro-Currency Loans is determined or
any category of extensions of credit or other assets which includes loans by a
non-United States office of any Bank to United States residents).

“Existing
Credit Agreement” means the Revolving Credit Agreement dated as of June 28,
2006, as amended. modified, supplemented or restated from time to time, among
the Borrower, the lenders party thereto, JPMorgan Chase Bank, N.A., as
administrative agent, Bank of America, N.A., as syndication agent, and the J.P.
Morgan Securities Inc. and Banc of America Securities LLC, as joint lead
arrangers and joint bookrunners.

“Event of Default”
has the meaning set forth in Section 6.1.

“Facility
Amount” has the meaning set forth in Section 2.1.

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

 8
 

the average rate quoted
to the Administrative Agent on such day on such transactions as determined by
the Administrative Agent.

“Federal
Reserve Board” means the Board of Governors of the Federal Reserve System
as constituted from time to time.

“Fiscal Quarter”
means a fiscal quarter of a Fiscal Year.

“Fiscal Year”
means the fiscal year of Borrower.

“Fitch”
means Fitch Investors Services, Inc., or any successor thereto.

“Fixed Charges”
for any Fiscal Quarter period means the sum of (i) Debt Service for such
period, and (ii) dividends on preferred units payable by Borrower for such
period.  If any of the foregoing Debt
Service is with respect to Indebtedness that is subject to an interest rate cap
agreement purchased by the Borrower or a Consolidated Subsidiary, the interest
rate shall be assumed to be the lower of the actual interest payable on such
Indebtedness or the capped rate of such interest rate cap agreement.

“Fremont”
means Fremont Investment & Loan, a California Industrial Bank.

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

“Group of Loans”
means, at any time, a group of Loans consisting of (i) all Committed Loans
which are Base Rate Loans at such time, or (ii) all Euro-Currency Loans having
the same Interest Period at such time; provided that, if a Committed Loan of
any particular Bank is converted to or made as a Base Rate Loan pursuant to
Section 8.2 or 8.5, such Loan shall be included in the same Group or Groups of
Loans from time to time as it would have been in if it had not been so
converted or made.

“Guarantors”
means those Guarantors under the Existing Credit Agreement and the New
Revolving Credit Agreement.

“Indebtedness”
as applied to any Person, means, at any time, without duplication, (a) all
indebtedness, obligations or other liabilities of such Person (whether
consolidated or representing the proportionate interest in any other Person)
(i) for borrowed money (including construction loans) or evidenced by debt
securities, debentures, acceptances, notes or other similar instruments, and
any accrued interest, fees and charges relating thereto, (ii) under profit
payment agreements or in respect of obligations to redeem, repurchase or
exchange any Securities of such Person or to pay dividends in respect of any
stock, (iii) with respect to letters of credit issued for such Person’s
account, (iv) to pay the deferred purchase price of property or services,
except accounts payable and accrued expenses arising in the ordinary course of
business, (v) in respect of Capital Leases, (vi) which are Contingent
Obligations or (vii) under 

 9
 

warranties and
indemnities; (b) all indebtedness, obligations or other liabilities of such
Person or others secured by a Lien on any property of such Person, whether or
not such indebtedness, obligations or liabilities are assumed by such Person,
all as of such time (provided that the value of such indebtedness,
obligations or liabilities shall be limited to the lesser of (x) the amount of
such indebtedness, obligations or liabilities assumed by such Person and (y)
the undepreciated book value of the property subject to such Lien, determined
in accordance with GAAP, and less any impairment charge, provided, further,
however, that if the amount of such indebtedness, obligations or liabilities
are greater than 90% of such undepreciated book value of the encumbered
property when assumed or incurred, then, if Borrower intends to apply the
provisions of this proviso thereto, Borrower shall deliver an appraisal
prepared by an independent appraiser to the Administrative Agent with respect
to the value of the applicable property); (c) all indebtedness, obligations or
other liabilities of such Person in respect of Interest Rate Contracts and
foreign exchange contracts, net of liabilities owed to such Person by the
counterparties thereon; (d) all preferred stock subject (upon the occurrence of
any contingency or otherwise) to mandatory redemption; and (e) all contingent
contractual obligations with respect to any of the foregoing.

“Indenture”
means the Indenture, dated as of March 30, 2004, between the Borrower and U.S.
Bank Trust National Association, as trustee, in respect of Borrower’s 5.125%
Senior Notes due 2011, as the same may be amended, modified or supplemented
from time to time.

“Indemnitee”
has the meaning set forth in Section 9.3(b).

“Interest
Expense” means, for any period and without duplication, total interest
expense, whether paid, accrued or capitalized of Borrower, on a consolidated
basis determined in accordance with GAAP.

“Interest
Period” means: (1) with respect to each Euro-Currency Borrowing, the period
commencing on the date of such Borrowing specified in the Notice of Borrowing
or on the date specified in the applicable Notice of Interest Rate Election and
ending 7 days or 1, 2 or 3 months thereafter; provided, that:

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

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

(c)  no Interest
Period may end later than the Maturity Date.

“Interest Rate
Contracts” means, collectively, interest rate swap, collar, cap or similar
agreements providing interest rate protection

 10
 

“Investment
Affiliate” means any joint venture or Subsidiary, whose financial results
are not consolidated under GAAP with the financial results of Borrower on the
consolidated financial statements of Borrower, which joint venture or
Subsidiary is so specified in the section of Borrower’s most recent SEC filings
titled “Joint Ventures, Unconsolidated Subsidiaries and Minority Interest”.

“Investment
Grade Rating” means a rating for a Person’s senior long-term unsecured debt
of BBB- or better from S&P or a rating of Baa3 or better from Moody’s. In
the event that Borrower receives Credit Ratings only from S&P and Moody’s,
and such Credit Ratings are not equivalent, the lower of such two (2) Credit
Ratings shall be used to determine whether an Investment Grade Rating was
achieved. In the event that Borrower receives more than two (2) Credit Ratings,
and such Credit Ratings are not all equivalent, the second highest Credit
Rating shall be used to determine whether an Investment Grade Rating was
achieved, provided that one of the highest two (2) Credit Ratings is from
S&P or Moody’s; provided, further, that if neither of the highest two (2)
Credit Ratings is from S&P or Moody’s, then the highest Credit Rating from
either S&P or Moody’s shall be used to determine whether an Investment
Grade Rating was achieved

“Joint
Bookrunners” means J.P. Morgan Securities Inc. and Citigroup Global Markets
Inc., in their capacity as Joint Bookrunners hereunder.

“Joint Lead
Arrangers” means J.P. Morgan Securities Inc. and Citigroup Global Markets
Inc., in their capacity as Joint Lead Arrangers hereunder.

“Lien”
means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind, or any other type of preferential
arrangement, in each case that has the effect of creating a security interest,
in respect of such asset. For the purposes of this Agreement, the Borrower or
any Consolidated Subsidiary shall be deemed to own subject to a Lien any asset
which it has acquired or holds subject to the interest of a vendor or lessor
under any conditional sale agreement, capital lease or other title retention
agreement relating to such asset.

“Loan”
means a Base Rate Loan or a Euro-Currency Loan, and “Loans” means Base
Rate Loans or Euro-Currency Loans or any combination of the foregoing.

“Loan Assets”
mean senior or subordinated loans, that may be either fixed or variable rate,
including first mortgages, second mortgages, partnership loans, participating
debt, preferred equity and interim facilities, corporate loans, “B” notes and
collateralized mortgage-backed securities.

“Loan Documents”
means this Agreement and the Notes.

“Loan Effective
Date” has the meaning set forth in Section 8.3.

“Material Adverse
Effect” means an effect resulting from any circumstance or event or series
of circumstances or events, of whatever nature (but excluding general economic
conditions), which does or could reasonably be expected to, materially and
adversely impair (i) the ability of the Borrower and its Consolidated
Subsidiaries, taken as a whole, to perform their 

 11
 

respective obligations
under the Loan Documents, or (ii) the ability of Administrative Agent or the
Banks to enforce the Loan Documents.

“Materials of
Environmental Concern” means and includes pollutants, contaminants,
hazardous wastes, toxic and hazardous substances, asbestos, lead, petroleum and
petroleum by-products.

“Maturity Date”
shall mean the date when all of the Obligations hereunder shall be due and payable
which shall be the earlier of (i) 364 days after the Effective Date and (ii)
June 30, 2008.

“Moody’s”
means Moody’s Investors Services, Inc. or any successor thereto.

“Multiemployer
Plan” means at any time an employee pension benefit plan within the meaning
of Section 4001(a)(3) of ERISA to which any member of the ERISA Group is then
making or accruing an obligation to make contributions or has at any time after
September 25, 1980 made contributions or has been required to make
contributions (for these purposes any Person which ceased to be a member of the
ERISA Group after September 25, 1980 will be treated as a member of the ERISA
Group).

“Negative
Pledge” means, with respect to any Property, any covenant, condition, or
other restriction entered into by the owner of such Property or directly
binding on such Property which prohibits or limits the creation or assumption
of any Lien upon such Property to secure any or all of the Obligations,
provided, however, that “Negative Pledge” shall not include the restrictions
set forth in Section 4.11 of the Indenture or any other similar requirement for
the equal and ratable sharing of collateral to be granted in the future.

“Net Income”
means, for any period, net income as shown on the Borrower’s most recent financial
statements, calculated on a consolidated basis in conformity with GAAP.

“Net Offering
Proceeds” with respect to any Person means all cash or other assets
received by such Person as a result of the issuance or sale of common shares of
beneficial interest, preferred shares of beneficial interest, partnership
interests, preferred partnership units, limited liability company interests,
Convertible Securities or other ownership or equity interests in such Person
(the foregoing, “Capital Stock”) or of Indebtedness, less customary
costs, fees, expenses and discounts of issuance paid or to be paid by such
Person related to such issuance or sale.

“Net Present
Value” shall mean, as to a specified or ascertainable Dollar amount, the
present value, as of the date of calculation of any such amount using a
discount rate equal to the Base Rate in effect as of the date of such
calculation.

“Net Worth”
means, at any time, the sum of the Borrower’s (i) book equity, (ii) accumulated
depreciation, (iii) accumulated depletion, and (iv) reserves for loan losses,
all in accordance with GAAP and, in the case of items (ii), (iii) and (iv)
hereof, exclusive of amounts attributable to Investment Affiliates.

 12
 

“New Revolving
Credit Agreement” means the Revolving Credit Agreement, dated June 26,
2007, , as amended. modified, supplemented or restated from time to time, among
the Borrower, the lenders party thereto, JPMorgan Chase Bank, N.A., as
administrative agent, Bank of America, N.A., as syndication agent, and the J.P.
Morgan Securities Inc. and Banc of America Securities LLC, as joint lead
arrangers and joint bookrunners.

“Non-Excluded
Taxes” has the meaning set forth in Section 8.4.

“Non-Recourse
Indebtedness” means Indebtedness with respect to which recourse for payment
is limited to (i) specific assets related to a particular Property or group of
Properties encumbered by a Lien securing such Indebtedness or (ii) for all
purposes other than Sections 5.12 and 6.1(e) hereof, any Subsidiary (provided
that if a Subsidiary is a partnership, there is no recourse to Borrower as a
general partner of such partnership); provided that if any portion of
Indebtedness is so limited, then such portion shall constitute Non-Recourse
Indebtedness and only the remainder of such Indebtedness shall constitute
Recourse Debt; provided, further, however, that personal
recourse of Borrower for any such Indebtedness for fraud, misrepresentation,
misapplication of cash, waste, Environmental Claims and liabilities and other
circumstances customarily excluded by institutional lenders from exculpation
provisions and/or included in separate indemnification agreements in
non-recourse financing of real estate shall not, by itself, prevent such
Indebtedness from being characterized as Non-Recourse Indebtedness.

“Notes”
means the promissory notes of the Borrower, substantially in the form of
Exhibit A hereto, evidencing the obligation of the Borrower to repay the Loans,
and “Note” means any one of such promissory notes issued hereunder.

“Notice of
Borrowing” means a notice from Borrower in accordance with Section 2.2.

“Notice of
Interest Rate Election” has the meaning set forth in Section 2.5.

“Obligations”
means all obligations, liabilities, indemnity obligations and Indebtedness of
every nature of the Borrower, from time to time owing to Administrative Agent
or any Bank under or in connection with this Agreement or any other Loan
Document.

“Other Taxes”
has the meaning set forth in Section 8.4.

“Parent”
means, with respect to any Bank, any Person controlling such Bank.

“Participant”
has the meaning set forth in Section 9.6(b).

“Patriot Act”
has the meaning set forth in Section 9.15.

“PBGC”
means the Pension Benefit Guaranty Corporation or any entity succeeding to any
or all of its functions under ERISA.

“Permitted Liens”
means:

 13
 

a.  Liens for
Taxes, assessments or other governmental charges not yet due and payable or
which are being contested in good faith by appropriate proceedings promptly
instituted and diligently conducted in accordance with the terms hereof;

b.  statutory
liens of carriers, warehousemen, mechanics, materialmen and other similar liens
imposed by law, which are incurred in the ordinary course of business for sums
not more than ninety (90) days delinquent or which are being contested in good
faith in accordance with the terms hereof;

c.  deposits or
pledges to secure the payment of worker’s compensation, unemployment insurance
and other social security or similar legislation or to secure liabilities to
insurance carriers or reimbursement and indemnity obligations in respect of
surety or appeal bonds;

d.  utility
deposits and other deposits or pledges to secure the performance of bids, trade
contracts (other than for borrowed money), leases, purchase contracts,
construction contracts, governmental contracts, statutory obligations, surety
bonds, performance bonds and other obligations of a like nature incurred in the
ordinary course of business;

e.  Liens for
purchase money obligations for equipment (or Liens to secure Indebtedness
incurred within 90 days after the purchase of any equipment to pay all or a
portion of the purchase price thereof or to secure Indebtedness incurred solely
for the purpose of financing the acquisition of any such equipment, or
extensions, renewals, or replacements of any of the foregoing for the same or
lesser amount); provided that (i) the Indebtedness secured by any such Lien
does not exceed the purchase price of such equipment, (ii) any such Lien
encumbers only the asset so purchased and the proceeds upon sale, disposition,
loss or destruction thereof, and (iii) such Lien, after giving effect to the
Indebtedness secured thereby, does not give rise to an Event of Default;

f.  easements
(including reciprocal easement agreements and utility agreements),
rights-of-way, zoning restrictions, other covenants, reservations,
encroachments, leases, licenses or similar charges or encumbrances (whether or
not recorded) and all other items listed on any Schedule B to Borrower’s owner’s
title insurance policies, except in connection with any Indebtedness, for any
of Borrower’s Real Property Assets, so long as the foregoing do not interfere
in any material respect with the use or ordinary conduct of the business of
Borrower and do not diminish in any material respect the value of the Property
to which such Permitted Lien is attached;

g.  (I) Liens
and judgments which have been or will be bonded (and the Lien on any cash or
securities serving as security for such bond) or released of record within
forty-five (45) days after the date such Lien or judgment is entered or filed
against Borrower, or any Subsidiary, or (II) Liens which are being contested in
good faith by appropriate proceedings for review and in respect of which there
shall have been secured a subsisting stay of execution pending such appeal or
proceedings and as to which the subject asset is not at risk of forfeiture;

 14
 

h.  Liens on
Property of the Borrower or its Subsidiaries securing Indebtedness which may be
incurred or remain outstanding without resulting in an Event of Default hereunder;

i.  Liens
created pursuant hereto in favor of the Administrative Agent for the benefit of
the Banks;

j.  Liens not
otherwise described but existing as of the Closing Date and listed on Schedule
1.1(b); and

k.  Liens in
favor of the Borrower.

“Person”
means an individual, a corporation, a partnership, a limited liability company,
an association, a trust or any other entity or organization, including, without
limitation, a government or political subdivision or an agency or
instrumentality thereof.

“Plan”
means at any time an employee pension benefit plan (other than a Multiemployer
Plan) which is covered by Title IV of ERISA or subject to the minimum funding
standards under Section 412 of the Code and either (i) is maintained, or
contributed to, by any member of the ERISA Group for employees of any member of
the ERISA Group or (ii) has at any time within the preceding five years been
maintained, or contributed to, by any Person which was at such time a member of
the ERISA Group for employees of any Person which was at such time a member of
the ERISA Group.

“Prime Rate”
means the rate of interest publicly announced by the Administrative Agent from
time to time as its “prime rate”.

“Pro Rata Share”
means, with respect to matters related to Commitments, a fraction (expressed as
a percentage), the numerator of which shall be the amount of such Bank’s
Commitment and the denominator of which shall be the aggregate amount of all of
the Banks’ Commitments.

“Property”
means, with respect to any Person, any real or personal property, building,
facility, structure, equipment or unit, or other asset owned by such Person.

“Qualified
Institution” means (i) a Bank or any Affiliate thereof; (ii) a commercial
bank having total assets in excess of $5,000,000,000; (iii) the central bank of
any country which is a member of the Organization for Economic Cooperation and
Development; or (iv) a finance company or other financial institution (other
than Borrower or its Affiliates) reasonably acceptable to the Administrative
Agent, which is regularly engaged in making, purchasing or investing in loans
and having total assets in excess of $500,000,000 or is otherwise reasonably
acceptable to the Administrative Agent; provided that in no event shall
any competitor of the Borrower or any Subsidiary qualify as a “Qualified
Institution” if the Borrower reasonably determines that such entity constitutes
such a competitor.  Notwithstanding the
foregoing, however, in no event shall any commercial bank or any wholly-owned
Subsidiary thereof, savings and loan institution, investment bank or
broker/dealer be deemed to be a competitor of the Borrower.

 15

“Quotation Date”
means, in relation to any Interest Period for which an interest rate is to be
determined if with respect to a Euro-Currency Loan in Dollars, two
Euro-Currency Business Days before the first day of such Interest Period.

“Rating Agencies” means, collectively,
S&P,  Moody’s and Fitch.

“Real Property
Assets” means as to any Person as of any time, the real property assets
(including, without limitation, interests in participating mortgages in which
such Person’s interest therein is characterized as equity according to GAAP)
owned directly or indirectly by such Person at such time.

“Recourse Debt”
shall mean Indebtedness that is not Non-Recourse Indebtedness.

“Regulation U”
means Regulation U of the Board of Governors of the Federal Reserve System, as
in effect from time to time.

“REIT”
means a real estate investment trust, as defined under Section 856 of the Code.

“Required Banks”
means at any time those Banks eligible to vote on matters hereunder after
giving effect to Section 2.3(c) (a) having more than 50% of the aggregate
amount of the Commitments of such Banks so entitled to vote or (b) if the
Commitments shall have been terminated, holding more than 50% of the aggregate
unpaid principal amount of the Loans of such Banks so entitled to vote.

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

“Secured Debt”
means Indebtedness, the payment of which is secured by a Lien (other than a
Permitted Lien listed in clauses (a) - (g), (i) and (k)) on any Property owned
or leased by Borrower or any Consolidated Subsidiary, plus Borrower’s Share of
Indebtedness, the payment of which is secured by a Lien (other than a Permitted
Lien of the type described above in this definition) on any Property owned or
leased by any Investment Affiliate.

“Securities”
means any stock, partnership interests, shares, shares of beneficial interest,
voting trust certificates, bonds, debentures, notes or other evidences of
indebtedness, secured or unsecured, convertible, subordinated or otherwise, or
in general any instruments commonly known as “securities,” or any certificates
of interest, shares, or participations in temporary or interim certificates for
the purchase or acquisition of, or any right to subscribe to, purchase or
acquire any of the foregoing, and shall include Indebtedness which would be
required to be included on the liabilities side of the balance sheet of
Borrower in accordance with GAAP, but shall not include any Cash or Cash
Equivalents or any evidence of the Obligations.

“Solvent”
means, with respect to any Person, that the fair saleable value of such Person’s
assets exceeds the Indebtedness of such Person.

“Subsidiary”
means any corporation or other entity of which securities or other ownership
interests having ordinary voting power to elect a majority of the board of
directors or 

 16
 

other persons performing
similar functions are at the time directly or indirectly owned by the Borrower.

“Syndication
Agent” means Citicorp North America, Inc., in its capacity as syndication
agent hereunder and its permitted successors in such capacity in accordance
with the terms of this Agreement.

“Taxes”
means all federal, state, local and foreign income and gross receipts taxes.

“Term” has
the meaning set forth in Section 2.8.

“Termination
Event” shall mean (i) a “reportable event”, as such term is described in
Section 4043 of ERISA (other than a “reportable event” not subject to the
provision for 30-day notice to the PBGC), or an event described in Section 4062(e)
of ERISA, (ii) the withdrawal by any member of the ERISA Group from a
Multiemployer Plan during a plan year in which it is a “substantial employer”
(as defined in Section 4001(a)(2) of ERISA), or the incurrence of liability by
any member of the ERISA Group under Section 4064 of ERISA upon the termination
of a Multiemployer Plan, (iii) the filing of a notice of intent to terminate
any Plan under Section 4041 of ERISA, other than in a standard termination
within the meaning of Section 4041 of ERISA, or the treatment of a Plan
amendment as a distress termination under Section 4041 of ERISA, (iv) the
institution by the PBGC of proceedings to terminate, impose liability (other
than for premiums under Section 4007 of ERISA) in respect of, or cause a
trustee to be appointed to administer, any Plan or (v) any other event or
condition that might reasonably constitute grounds for the termination of, or
the appointment of a trustee to administer, any Plan or the imposition of any
liability or encumbrance or Lien on the Real Property Assets or any member of
the ERISA Group under ERISA or the Code.

“Total
Indebtedness” means, as of the date of determination and without
duplication, all Indebtedness of Borrower and its Consolidated Subsidiaries,
but excluding Borrower’s Share of all Indebtedness of Investment Affiliates.

“Undepreciated
Real Estate Assets” means, as of any date, the cost (being the original
cost to the Borrower or the applicable subsidiary plus capital improvements) of
real estate assets of the Borrower and its Subsidiaries on such date, before
depreciation and amortization of such real estate assets, determined on a
consolidated basis in accordance with GAAP.

“Unencumbered
Asset” means the sum of (i) Undepreciated Real Estate Assets not securing
any portion of Secured Debt and (ii) all other assets (but excluding
intangibles and accounts receivable) of the Borrower and its Subsidiaries not
securing any portion of Secured Debt on a consolidated basis in accordance with
GAAP; provided that assets (including Undepreciated Real Estate Assets)
of any Subsidiary (other than a Guarantor) having Indebtedness that is material
to the value of such assets shall be excluded from Unencumbered Assets.

“United States”
means the United States of America, including the fifty states and the District
of Columbia.

 17
 

“Unsecured Debt”
means the amount of Indebtedness for borrowed money of Borrower (or any
Guarantor) which is not Secured Debt, including, without limitation, the amount
of all then outstanding Loans (it being understood that Indebtedness of any
Subsidiary that is not material to the value of such Subsidiary’s assets shall
be Unsecured Debt).

“Value”
means, as of any date of determination, with respect to each Unencumbered Asset
the lesser of (x) undepreciated cost (or in the case of any Credit Tenant Lease
Asset or Loan Asset that is less than 100% owned, directly or indirectly, by
the Borrower, Borrower’s pro rata share thereof), and (y) market value (or in
the case of any Credit Tenant Lease Asset or Loan Asset that is less than 100%
owned, directly or indirectly, by the Borrower, Borrower’s pro rata share
thereof), all as determined in accordance with GAAP.

SECTION
1.2.                Accounting
Terms and Determinations. Unless otherwise specified herein, all accounting
terms used herein shall be interpreted, all accounting determinations hereunder
shall be made, and all financial statements required to be delivered hereunder
shall be prepared in accordance with GAAP applied on a basis consistent (except
for changes concurred in by the Borrower’s independent public accountants) with
the most recent audited consolidated financial statements of the Borrower and
its Consolidated Subsidiaries delivered to the Administrative Agent; provided
that, if the Borrower notifies the Administrative Agent that the Borrower
wishes to amend any covenant in Article V to eliminate the effect of any change
in GAAP on the operation of such covenant (or if the Administrative Agent
notifies the Borrower that the Required Banks wish to amend Article V for such
purpose), then the Borrower’s compliance with such covenant shall be determined
on the basis of GAAP in effect immediately before the relevant change in GAAP
became effective, until either such notice is withdrawn or such covenant is
amended in a manner reasonably satisfactory to the Borrower and the Required
Banks.

SECTION
1.3.                Types of
Borrowings. The term “Borrowing” denotes the aggregation of Loans of one or
more Banks to be made to the Borrower pursuant to Article 2 on the same date,
all of which Loans are of the same type (subject to Article 8) and, except in
the case of Base Rate Loans, have the same initial Interest Period. Borrowings
are classified for purposes of this Agreement either by reference to the
pricing or currency of Loans comprising such Borrowing; a “Euro-Currency
Borrowing” is a Borrowing comprised of Euro-Currency Loans; or by reference to
the provisions of Article 2 under which participation therein is determined.

ARTICLE II

THE CREDITS

SECTION
2.1.                Commitments
to Lend. (a) Each Bank severally agrees, on the terms and conditions set
forth in this Agreement, to make a Committed Loan to the Borrower on the
Closing Date in an amount not to exceed the Commitment of such Bank.  Each Euro-Currency Borrowing outstanding
under this Section 2.1 shall be in an aggregate principal amount of $5,000,000,
or an integral multiple of an amount of $1,000,000 in excess thereof, and each
Base Rate Borrowing shall be in an aggregate principal amount of $1,000,000, or
an integral multiple of $1,000,000 in excess thereof) and shall be made from
the several Banks 

 18
 

ratably in proportion to
their respective Commitments. In no event shall the aggregate amount of Loans
made on the Closing Date at any time exceed $2,000,000,000 (as adjusted
pursuant to Section 2.9(c) or as may otherwise be provided in this Agreement,
the “Facility Amount”).

(b)
          The Commitments shall be (i)
reduced upon receipt by the Borrower or any of its Subsidiaries prior to the
Closing Date of any Net Offering Proceeds from the issuance or sale of its
Capital Stock or Indebtedness (other than Indebtedness of any Subsidiary
incurred in the ordinary course of business) in a capital markets transaction
in an amount equal to such Net Offering Proceeds and (ii) reduced at any time
or from time to time by an aggregate principal amount of $5,000,000 or an
integral multiple of $1,000,000 in excess thereof or terminated at any time, in
each case prior to Closing Date, at the option of the Borrower by notice to the
Administrative Agent at least three Business Days prior to the date of such
reduction or termination. The Administrative Agent shall promptly notify each
Bank of any such reduction or termination.

SECTION
2.2.                Notice of
Borrowing. (a) With respect to any Borrowing, the Borrower shall give
Administrative Agent notice not later than 1:00 p.m. (New York City time) (x)
the Business Day prior to the anticipated Closing Date with respect to Base
Rate Borrowings, or (y) the third (3rd) Euro-Currency Business Day before the
anticipated Closing Date with respect to Euro-Currency Borrowings, specifying:

(i)            the aggregate amount of such
Borrowing,

(ii)           whether the Loans comprising such
Borrowing are to be Base Rate Loans or Euro-Currency Loans,

(iii)          in the case of a Euro-Currency
Borrowing, the duration of the Interest Period applicable thereto, subject to
the provisions of the definition of Interest Period,

(iv)          payment instructions for delivery of
such Borrowing; and

(v)           that no Default or Event of Default
has occurred or is continuing.

SECTION 2.3.                Notice to Banks; Funding of
Loans.

(a)           Upon
receipt of a Notice of Borrowing from Borrower in accordance with Section 2.2
hereof, the Administrative Agent shall, on the date such Notice of Borrowing is
received by the Administrative Agent, notify each applicable Bank of the
contents thereof and of such Bank’s share of such Borrowing, of the interest
rate applicable thereto and the Interest Period(s) (if different from those
requested by the Borrower) and such Notice of Borrowing shall not thereafter be
revocable by the Borrower, unless Borrower shall pay any applicable expenses
pursuant to Section 2.12.

(b)           Not later than 2:00
p.m. (New York City time) on the Closing Date, each Bank shall (except as
provided in subsection (d) of this Section) make available its Pro Rata Share
of such Borrowing in Federal funds, to the Administrative Agent at its address
referred to in Section 9.1.

 19
 

(c)           Unless the
Administrative Agent shall have received notice from a Bank prior to the
Closing Date that such Bank will not make available to the Administrative Agent
such Bank’s share of any Borrowing, the Administrative Agent may assume that
such Bank has made such share available to the Administrative Agent on the
Closing Date in accordance with this Section 2.3 and the Administrative Agent
may, in reliance upon such assumption, but shall not be obligated to, make
available to the Borrower on the Closing Date a corresponding amount on behalf
of such Bank.  If and to the extent that
such Bank shall not have so made such share available to the Administrative
Agent, such Bank agrees to repay to the Administrative Agent forthwith on
demand such corresponding amount together with interest thereon, at the Federal
Funds Rate, for each day from the date such amount is made available to the
Borrower until the date such amount is repaid to the Administrative Agent. If
such Bank shall repay to the Administrative Agent such corresponding amount,
such amount so repaid shall constitute such Bank’s Loan included in such
Borrowing for purposes of this Agreement. 
If such Bank shall not pay to Administrative Agent such corresponding
amount after reasonable attempts are made by Administrative Agent to collect
such amounts from such Bank, the Borrower agrees to repay to Administrative
Agent forthwith on demand such corresponding amounts together with interest
thereto, for each day from the date such amount is made available to Borrower
until the date such amount is repaid to Administrative Agent, at the interest
rate applicable thereto one (1) Business Day after demand. Nothing contained in
this Section 2.3(c) shall be deemed to reduce the Commitment of any Bank or in
any way affect the rights of Borrower with respect to any defaulting Bank or
Administrative Agent.  The failure of any
Bank to make available to the Administrative Agent such Bank’s share of any
Borrowing in accordance with Section 2.3(b) hereof shall not relieve any other
Bank of its obligations to fund its Commitment, in accordance with the
provisions hereof. In addition, until such time as such Bank shall make
available to the Administrative Agent such Bank’s share of any Borrowing in
accordance with Section 2.3(b) hereof or shall repay to the Administrative
Agent all amounts due to it, as applicable, unless such failure is subject to a
good faith dispute as to whether such advance or reimbursement is properly
required to be made pursuant to the provisions of this Agreement, such Bank
shall not have the right to approve or consent to any matter requiring such
approval or consent hereunder.

(d)           Subject to the
provisions hereof, the Administrative Agent shall make available each Borrowing
to Borrower in Federal funds immediately available in accordance with, and on
the date set forth in, the applicable Notice of Borrowing.

SECTION 2.4.                Notes.

(a)           Each
Bank may, by notice to the Borrower and the Administrative Agent, request that
its Loans be evidenced by a separate Note in an amount equal to the aggregate
unpaid principal amount of such Loans. Any additional costs incurred by the
Administrative Agent, the Borrower or the Banks in connection with preparing
such a Note shall be at the sole cost and expense of the Bank requesting such
Note. In the event any Loans evidenced by such a Note are paid in full prior to
the Maturity Date, any such Bank shall return such Note to Borrower.  Each such Note shall be in substantially the
form of Exhibit A hereto.  Upon the
execution and delivery of any such Note, any existing Note payable to such Bank
shall be returned to Borrower and replaced or modified accordingly.  Each reference in this Agreement to the “Note”
of such Bank shall be deemed to refer to and include any or all of such Notes,
as the context may require.

 20
 

(b)           Upon receipt of any
Bank’s Note pursuant to Section 3.1(a), the Administrative Agent shall forward
such Note to such Bank.  Such Bank shall
record the date, amount, currency, type and maturity of each Loan made by it
and the date and amount of each payment of principal made by the Borrower, with
respect thereto, and may, if such Bank so elects in connection with any
transfer or enforcement of its Note, endorse on the appropriate schedule
appropriate notations to evidence the foregoing information with respect to
each such Loan then outstanding; provided that the failure of such Bank to make
any such recordation or endorsement shall not affect the obligations of the
Borrower hereunder or under the Notes. 
Each Bank is hereby irrevocably authorized by the Borrower so to endorse
its Note and to attach to and make a part of its Note a continuation of any
such schedule as and when required.

(c)           The Committed Loans
shall mature, and the principal amount thereof shall be due and payable, on the
Maturity Date.

(d)           There shall be no
more than ten (10) Euro-Currency Groups of Loans outstanding at any one time.

SECTION
2.5.                Method of
Electing Interest Rates. (a) The Loans included in each Borrowing shall
bear interest initially at the type of rate specified by the Borrower, in the
Notice of Borrowing.  Thereafter, the
Borrower may from time to time elect to change or continue the type of interest
rate borne by each Group of Loans (subject in each case to the provisions of
Article VIII and without affecting the currency of any particular Loan), as
follows:

(i)            if such Loans are Base Rate Loans,
the Borrower may elect to convert all or any portion of such Loans to
Euro-Currency Loans as of any Euro-Currency Business Day;

(ii)           if such Loans are Euro-Currency
Loans, the Borrower may elect to convert all or any portion of such Loans to
Base Rate Loans and/or elect to continue all or any portion of such Loans as
Euro-Currency Loans for an additional Interest Period or additional Interest
Periods, in each case effective on the last day of the then current Interest
Period applicable to such Loans, or on such other date designated by Borrower
in the Notice of Interest Rate Election provided Borrower shall pay any losses
pursuant to Section 2.12.

Each such election shall
be made by delivering a notice (a “Notice of Interest Rate Election”) to
the Administrative Agent at least three (3) Euro-Currency Business Days prior
to, but excluding, the effective date of the conversion or continuation
selected in such notice.  A Notice of
Interest Rate Election may, if it so specifies, apply to only a portion of the
aggregate principal amount of the relevant Group of Loans; provided that (i)
such portion is allocated ratably among the Loans comprising such Group, (ii)
the portion to which such Notice applies, and the remaining portion to which it
does not apply, are each in the minimum amounts required hereby, (iii) no
Committed Loan may be continued as, or converted into, a Euro-Currency Loan
when any Event of Default has occurred and is continuing, provided, however,
that if and for so long as Borrower shall have an Investment Grade Rating from
S&P and Moody’s, if Borrower shall so request and the Required Banks shall
so elect, then a Committed Loan may be continued as, or converted into, a 

 21
 

Euro-Currency Loan when
any Event of Default has occurred and is continuing, and (iv) no Interest
Period shall extend beyond the Maturity Date.

(b)           Each
Notice of Interest Rate Election shall specify:

(i)            the Group of Loans (or portion
thereof) to which such notice applies;

(ii)           the date on which the conversion or
continuation selected in such notice is to be effective, which shall comply
with the applicable clause of subsection (a) above;

(iii)          if the Loans comprising such Group are
to be converted, the new type of Loans and, if such new Loans are Euro-Currency
Loans, the duration of the initial Interest Period applicable thereto; and

(iv)          if such Loans are to be continued as
Euro-Currency Loans for an additional Interest Period, the duration of such
additional Interest Period.

Each Interest Period
specified in a Notice of Interest Rate Election shall comply with the
provisions of the definition of Interest Period.

(c)           Upon
receipt of a Notice of Interest Rate Election from the Borrower pursuant to
subsection (a) above, the Administrative Agent shall notify each Bank the same
day as it receives such Notice of Interest Rate Election of the contents
thereof, the interest rates determined pursuant thereto and the Interest
Periods (if different from those requested by the Borrower) and such notice
shall not thereafter be revocable by the Borrower.  If the Borrower fails to deliver a timely
Notice of Interest Rate Election to the Administrative Agent for any Group of
Euro-Currency Loans, such Dollar Loans shall be converted into Base Rate Loans
on the last day of the then current Interest Period applicable thereto.

SECTION
2.6.                Interest
Rates.

(a)           Each
Base Rate Loan shall bear interest on the outstanding principal amount thereof,
for each day from the date such Loan is made until the date it is repaid or
converted into a Euro-Currency Loan pursuant to Section 2.5, at a rate per
annum equal to sum of the Base Rate plus the Applicable Margin for Base Rate
Loans for such day.

(b)           Each Euro-Currency
Loan shall bear interest on the outstanding principal amount thereof, for each
day during the Interest Period applicable thereto, at a rate per annum equal to
the sum of the Applicable Margin for Euro-Currency Loans for such day plus the
Euro-Currency Rate applicable to such Interest Period.

(c)           In the event that,
and for so long as, any Event of Default shall have occurred and be continuing,
any overdue principal amount of the Loans, and, to the extent permitted by
applicable law, overdue interest and fees in respect of all Loans, shall bear
interest at the annual rate equal to the sum of the Base Rate and two percent
(2%), or, if any Committed Loan shall have been continued as, or converted
into, a Euro-Currency Loan, then, as to such 

 22
 

Loan only, the
sum of the Euro-Currency Rate and the Applicable Margin for Euro-Currency
Loans, and two percent (2%) (collectively, the “Default Rate”).

(d)           The Administrative
Agent shall determine each interest rate applicable to the Loans
hereunder.  The Administrative Agent
shall give prompt notice to the Borrower and the Banks of each rate of interest
so determined, and its determination thereof shall be conclusive in the absence
of demonstrable error.

(e)           Interest on all
Loans bearing interest at the Base Rate shall be payable on the first Business
Day of each calendar month. Interest on all Loans bearing interest based on the
Euro-Currency Rate shall be payable on the last Euro-Currency Business Day of
the applicable Interest Period.

SECTION
2.7.                Fees.

(a)           Commitment
Fee. If the Closing Date shall not have occurred by August 15, 2007, for
the period beginning on August 15, 2007 and ending on the Closing Date or the
date on which the Commitments are otherwise terminated hereunder (the “Commitment
Fee Period”), the Borrower shall pay to the Administrative Agent for the
account of the Banks ratably in proportion to their respective Commitments a
commitment fee on the aggregate Commitments at the rate of 0.10% per annum. The
commitment fee shall be payable in arrears on the last Business Day of each
March, June, September and December during the Commitment Fee Period and on the
Closing Date and the date of any termination of the Commitments.

(b)           The Borrower agrees
to pay to the Administrative Agent the fees in the amounts and on the dates as
set forth in any agreements with the Administrative Agent and to perform any
other obligations contained therein.

SECTION
2.8.                Termination
of Commitments and Maturity Date. The term (the “Term”) of the
Commitments (and each Bank’s obligations to make Loans) shall terminate and
expire on the Closing Date, which shall not be later than October 15, 2007. Any
Loans outstanding on the Maturity Date (together with accrued interest thereon
and all other Obligations) shall be due and payable on such date.

SECTION
2.9.                Optional
Prepayments.

(a)           The
Borrower may, upon at least one (1) Business Day’s notice to the Administrative
Agent, prepay any Group of Base Rate Loans, in whole at any time, or from time
to time in part in amounts aggregating One Million Dollars ($1,000,000) or
more, by paying the principal amount to be prepaid together with accrued
interest thereon to the date of prepayment.

(b)           The Borrower may,
upon at least three (3) Euro-Currency Business Days’ notice to the
Administrative Agent, given no later than 1:00 p.m. (New York time, with
respect to Dollar denominated Loans) pay all, or from time to time in part in
amounts aggregating the amount of approximately Five Million Dollars
($5,000,000) or more, of any Euro-Currency Loan as of the last day of the
Interest Period applicable thereto.  Except
as provided in Article 8 and except with respect to any Euro-Currency Loan
which has been converted to a Base Rate Loan pursuant to Section 8.2, 8.3 or
8.5 hereof, the Borrower may not prepay all or any portion of the 

 23
 

principal
amount of any Euro-Currency Loan prior to the end of the Interest Period
applicable thereto unless the Borrower shall also pay any applicable expenses
pursuant to Section 2.12. Each such optional prepayment shall be applied to
prepay ratably the Loans of the Banks included in any Group of Euro-Currency
Loans, except that any Euro-Currency Loan which has been converted to a Base
Rate Loan pursuant to Section 8.2, 8.3 or 8.5 hereof may be prepaid without
ratable payment of the other Loans in such Group of Loans which have not been
so converted.

(c)           Any amounts so prepaid
pursuant to Section 2.9 (a) or (b) may not be reborrowed.

SECTION
2.10.              Mandatory
Prepayments. The Committed Loans shall be prepaid upon receipt by the
Borrower or any of its Subsidiaries after the Closing Date of Net Offering
Proceeds from the issuance or sale of its Capital Stock or Indebtedness (other
than any Indebtedness of any Subsidiary incurred in the ordinary course of
business and other than any Indebtedness under the Existing Credit Agreement
and the New Revolving Credit Agreement) in a capital markets transaction in an
amount equal to such Net Offering Proceeds.

SECTION
2.11.              General
Provisions as to Payments.

(a)           The
Borrower shall make each payment of the principal of and interest on the Loans
and fees hereunder, without set-off or counterclaim, by initiating a wire
transfer not later than 1:00 p.m. (New York City time) on the date when due, of
Federal or other appropriate funds immediately available in New York, New York,
to the Administrative Agent at its address referred to in Section 9.1. The
Administrative Agent will promptly distribute to each Bank its ratable share of
each such payment received by the Administrative Agent for the account of the
Banks.  Whenever any payment of principal
of, or interest on the Base Rate Loans or of fees shall be due on a day which
is not a Business Day, the date for payment thereof shall be extended to the
next succeeding Business Day.  Whenever
any payment of principal of, or interest on, the Euro-Currency Loans shall be
due on a day which is not a Euro-Currency Business Day, the date for payment
thereof shall be extended to the next succeeding Euro-Currency Business Day
unless such Euro-Currency Business Day falls in another calendar month, in
which case the date for payment thereof shall be the immediately preceding
Euro-Currency Business Day.  If the date
for any payment of principal is extended by operation of law or otherwise,
interest thereon shall be payable for such extended time.

(b)           Unless the
Administrative Agent shall have received notice from the Borrower prior to the
date on which any payment is due to the Banks hereunder that the Borrower will
not make such payment in full, the Administrative Agent may assume that the
Borrower has made such payment in full to the Administrative Agent on such date
and the Administrative Agent may, in reliance upon such assumption, cause to be
distributed to each Bank on such due date an amount equal to the amount then
due such Bank. If and to the extent that the Borrower shall not have so made
such payment, each Bank shall repay to the Administrative Agent forthwith on
demand such amount distributed to such Bank together with interest thereon, for
each day from the date such amount is distributed to such Bank until the date
such Bank repays such amount to the Administrative Agent, at the Federal Funds
Rate.

 24
 

SECTION
2.12.              Funding
Losses. If the Borrower makes any payment of principal with respect to any
Euro-Currency Loan (pursuant to Article II, VI or VIII or otherwise) on any day
other than the last day of the Interest Period applicable thereto, or if the
Borrower fails to borrow any Euro-Currency Loans after notice has been given to
any Bank in accordance with Section 2.5(a), or if Borrower shall deliver a
Notice of Interest Rate Election specifying that a Euro-Currency Loan shall be
converted on a date other than the first (1st) day of the then current Interest
Period applicable thereto, the Borrower shall reimburse each Bank within 15
days after certification by such Bank of such loss or expense (which shall be
delivered by each such Bank to Administrative Agent for delivery to Borrower)
for any resulting loss (based on interest only, exclusive of fees, if any) or
expense incurred by it (or by an existing Participant in the related Loan),
including, without limitation, any loss incurred in obtaining, liquidating or
employing deposits from third parties, but excluding loss of margin for the
period after any such payment or failure to borrow, provided that such Bank
shall have delivered to Administrative Agent and Administrative Agent shall
have delivered to the Borrower a certification as to the amount of such loss or
expense, which certification shall set forth in reasonable detail the basis for
and calculation of such loss or expense and shall be conclusive in the absence
of demonstrable error.

SECTION
2.13.              Computation
of Interest and Fees. Interest based on the Prime Rate shall be computed on
the basis of a year of 365 days (or, in the case of interest based on the Prime
Rate only, 366 days in a leap year) and paid for the actual number of days
elapsed (including the first day but excluding the last day).  All other interest and fees shall be computed
on the basis of a year of 360 days and paid for the actual number of days
elapsed (including the first day but excluding the last day).

SECTION
2.14.              Use of
Proceeds. The Borrower shall use the proceeds of the Loans to fund a
portion of the costs of the Acquisition, and pay related costs and expenses
incurred in connection with the Acquisition and the financing thereof.

ARTICLE III

CONDITIONS

SECTION
3.1.                Closing.
The Closing Date shall occur on the date when each of the following conditions
is satisfied (or waived in writing by the Administrative Agent and the Banks),
each document to be dated the Closing Date unless otherwise indicated:

(a)           the
Borrower as of the Closing Date shall have executed and delivered to the
Administrative Agent a Note for the account of each Bank requesting the same
dated the Closing Date and complying with the provisions of Section 2.4;

(b)           the Borrower and the
Administrative Agent and each of the Banks shall have executed and delivered to
the Borrower and the Administrative Agent a duly executed original of this
Agreement;

(c)           the Administrative
Agent shall have received opinions of (i) Clifford Chance US LLP, special
counsel for the Borrower, and (ii) Geoffrey Dugan, Esq., in-house 

 25
 

counsel for
the Borrower, each acceptable to the Administrative Agent, the Banks and their
counsel;

(d)           the Acquisition
shall have been consummated in accordance with the Asset Purchase Agreement
without any amendment or waiver adverse to the Banks in a material respect;

(e)           the Administrative
Agent shall have received all documents the Administrative Agent may reasonably
request relating to the existence of the Borrower as of the Closing Date, the
authority for and the validity of this Agreement and the other Loan Documents,
the incumbency of officers executing this Agreement and the other Loan
Documents and any other matters relevant hereto, all in form and substance
satisfactory to the Administrative Agent. 
Such documentation shall include, without limitation, the articles of
incorporation of Borrower, as amended, modified or supplemented to the Closing
Date, certified to be true, correct and complete by a senior officer of
Borrower as of a date not more than ten (10) days prior to the Closing Date,
together with a good standing certificate as to Borrower from the Secretary of
State (or the equivalent thereof) of Maryland, to be dated not more than thirty
(30) days prior to the Closing Date;

(f)            the Administrative
Agent shall have received all certificates, agreements and other documents and
papers referred to in this Section 3.1 and the Notice of Borrowing referred to
in Section 2.2, if applicable, unless otherwise specified, in sufficient
counterparts, satisfactory in form and substance to the Administrative Agent in
its reasonable discretion;

(g)           the Borrower shall
have taken all actions required to authorize the execution and delivery of this
Agreement and the other Loan Documents and the performance thereof by the
Borrower;

(h)           the Administrative
Agent shall have received, for its and any other Bank’s account, all fees due
and payable pursuant to Section 2.7 hereof on or before the Closing Date, and
the reasonable and documented fees and expenses accrued through the Closing
Date of Simpson Thacher & Bartlett LLP shall have been paid to Simpson
Thacher & Bartlett LLP;

(i)            the Borrower shall
have delivered copies of all consents, licenses and approvals, if any, required
in connection with the execution, delivery and performance by the Borrower, and
the validity and enforceability, of the Loan Documents, or in connection with
any of the transactions contemplated thereby, and such consents, licenses and
approvals shall be in full force and effect;

(j)            no Default or Event
of Default shall have occurred;

(k)           the representations
and warranties of the Borrower contained in Sections 4.1, 4.2, 4.4(a), 4.11,
4.13 and 4.20 (other than any such representations and warranties which
expressly speak as of a different date, which representations and warranties
shall be true and correct in all material respects as of such different date)
and the representations and warranties in the Asset Purchase Agreement as are material
to the interests of the Banks, but only to the extent that the Borrower has the
right to terminate its obligations under the Asset Purchase Agreement as a
result of a breach of such representations and warranties in the Asset Purchase
Agreement 

 26
 

shall be true
and correct in all material respects on and as of the date of such Borrowing
both before and after giving effect to the making of such Loans.

Each Borrowing on the
Closing Date shall be deemed to be a representation and warranty by the
Borrower on the Closing Date as to the facts specified in clause (k).

ARTICLE IV

REPRESENTATIONS AND
WARRANTIES

In order to induce
the Administrative Agent and each of the other Banks which is or may become a
party to this Agreement to make the Loans, the Borrower makes the following
representations and warranties as of the Closing Date and, in accordance with
Section 3.1(k) hereof, as of each Borrowing. 
Such representations and warranties shall survive the effectiveness of this
Agreement, the execution and delivery of the other Loan Documents and the
making of the Loans.

SECTION
4.1.                Existence
and Power. The Borrower is a corporation, duly formed, validly existing and
in good standing under the laws of the State of Maryland and has all powers and
all material governmental licenses, authorizations, consents and approvals
required to own its property and assets and carry on its business as now
conducted or as it presently proposes to conduct and has been duly qualified
and is in good standing in every jurisdiction in which the failure to be so
qualified and/or in good standing is likely to have a Material Adverse Effect.

SECTION
4.2.                Power and
Authority. The Borrower has the requisite power and authority to execute,
deliver and carry out the terms and provisions of each of the Loan Documents to
which it is a party and has taken all necessary action, if any, to authorize
the execution and delivery on behalf of the Borrower and the performance by the
Borrower of the Loan Documents to which it is a party.  The Borrower has duly executed and delivered
each Loan Document to which it is a party in accordance with the terms of this
Agreement, and each such Loan Document constitutes the legal, valid and binding
obligation of the Borrower, enforceable in accordance with its terms, except as
enforceability may be limited by applicable insolvency, bankruptcy or other
similar laws affecting creditors rights generally, or general principles of
equity, whether such enforceability is considered in a proceeding in equity or
at law.

SECTION
4.3.                No
Violation. Neither the execution, delivery or performance by or on behalf
of the Borrower of the Loan Documents to which it is a party, nor compliance by
the Borrower with the terms and provisions thereof nor the consummation of the
transactions contemplated by such Loan Documents, (i) will materially
contravene any applicable provision of any law, statute, rule, regulation,
order, writ, injunction or decree of any court or governmental instrumentality,
(ii) will materially conflict with or result in any breach of any of the terms,
covenants, conditions or provisions of, or constitute a default under, or
result in the creation or imposition of (or the obligation to create or impose)
any Lien upon any of the property or assets of the Borrower or any of its
Consolidated Subsidiaries pursuant to the terms of, any indenture, mortgage,
deed of trust, or other agreement or other instrument to which the 

 27
 

Borrower (or of any
partnership of which the Borrower is a partner) or any of its Consolidated
Subsidiaries is a party or by which it or any of its property or assets is
bound or to which it is subject (except for such breaches and defaults under
loan agreements which the lenders thereunder have agreed to forbear pursuant to
valid forbearance agreements), or (iii) will cause a material default by the
Borrower under any organizational document of any Person in which the Borrower
has an interest, or cause a material default under the Borrower’s agreement or
certificate of limited partnership, the consequences of which conflict, breach
or default would have a Material Adverse Effect, or result in or require the
creation or imposition of any Lien whatsoever upon any Property (except as
contemplated herein).

SECTION
4.4.                Financial
Information. (a) The consolidated financial statement of Borrower and its
Consolidated Subsidiaries as of December 31, 2006, and for the Fiscal Year then
ended, reported on by PricewaterhouseCoopers LLP fairly present, in conformity
with GAAP, the consolidated financial position of Borrower and its Consolidated
Subsidiaries as of such date and the consolidated results of operations and
cash flows for such Fiscal Year; and, the consolidated financial statement of
the Borrower and its Consolidated Subsidiaries as of March 31, 2007 and for the
fiscal quarter then ended fairly present, in conformity with GAAP, the
consolidated financial position of the Borrower and its Consolidated
Subsidiaries as of such date and the consolidated results  of operations and cash flows for such fiscal
quarter, subject to normal year-end audit adjustments.

(b)           Since
December 31, 2006, (i) except as may have been disclosed in writing to the
Banks prior to the Closing Date, nothing has occurred having a Material Adverse
Effect, and (ii) except as set forth on Schedule 4.4(b), Borrower has
not incurred any material Indebtedness or guaranteed any Indebtedness on or
before the Closing Date.

SECTION
4.5.                Litigation.
There is no action, suit or proceeding pending against, or to the knowledge of
the Borrower threatened against or affecting, (i) the Borrower or any of its
Consolidated Subsidiaries, (ii) the Loan Documents or any of the transactions
contemplated by the Loan Documents or (iii) any of the assets of the Borrower
or any of its Consolidated Subsidiaries, before any court or arbitrator or any
governmental body, agency or official in which there is a reasonable
possibility of an adverse decision which could, individually, or in the
aggregate have a Material Adverse Effect or which in any manner draws into
question the validity of this Agreement or the other Loan Documents.

SECTION
4.6.                Compliance
with ERISA. (a) Except as set forth on Schedule 4.6 attached hereto,
Borrower is not a member of nor has entered into, maintained, contributed to,
or been required to contribute to, or may incur any liability with respect to
any Plan or Multiemployer Plan.  In the
event that at any time after the Closing Date, Borrower shall become a member
of any other material Plan or Multiemployer Plan, Borrower promptly shall
notify the Administrative Agent thereof (and from and after such notice, Schedule
4.6 shall be deemed modified thereby).

(b)           No
assets of Borrower constitute “assets” (within the meaning of ERISA or Section
4975 of the Code, including, but not limited to, 29 C.F.R. § 2510.3-101 or any
successor regulation thereto) of an “employee benefit plan” within the meaning
of Section 3(3) of ERISA or a “plan” within the meaning of Section 4975(e)(1)
of the Code.  In addition to the 

 28
 

prohibitions set forth in this Agreement and the other Loan Documents,
and not in limitation thereof, Borrower covenants and agrees that Borrower
shall not use any “assets” (within the meaning of ERISA or Section 4975 of the
Code, including but not limited to 29 C.F.R. § 2510.3101) of an “employee
benefit plan” within the meaning of Section 3(3) of ERISA or a “plan” within
the meaning of Section 4975(e)(1) of the Code to repay or secure the Note, the
Loan, or the Obligations.

SECTION
4.7.                Environmental.
The Borrower conducts reviews of the effect of Environmental Laws on the
business, operations and properties of the Borrower and its Consolidated
Subsidiaries when necessary in the course of which it identifies and evaluates
associated liabilities and costs (including, without limitation, any capital or
operating expenditures required for clean-up or closure of properties presently
owned, any capital or operating expenditures required to achieve or maintain
compliance with environmental protection standards imposed by law or as a
condition of any license, permit or contract, any related constraints on
operating activities, and any actual or potential liabilities to third parties,
including, without limitation, employees, and any related costs and
expenses).  On the basis of this review,
the Borrower has reasonably concluded that such associated liabilities and
costs, including, without limitation, the costs of compliance with
Environmental Laws, are unlikely to have a Material Adverse Effect.

SECTION
4.8.                Taxes.
The Borrower and its Consolidated Subsidiaries have filed all United States
Federal income tax returns and all other material tax returns which are
required to be filed by them and have paid all taxes due pursuant to such
returns or pursuant to any assessment received by the Borrower, or any
Consolidated Subsidiary, except (i) such taxes, if any, as are reserved against
in accordance with GAAP, (ii) such taxes as are being contested in good faith
by appropriate proceedings or (iii) such tax returns or such taxes, the failure
to file when due or to make payment when due and payable will not have, in the
aggregate, a Material Adverse Effect. The charges, accruals and reserves on the
books of the Borrower and its Consolidated Subsidiaries in respect of taxes or
other governmental charges are, in the opinion of the Borrower, adequate.

SECTION
4.9.                Full
Disclosure. All information heretofore furnished by the Borrower to the
Administrative Agent and all the Banks for purposes of or in connection with
this Agreement or any transaction contemplated hereby or thereby is true and
accurate in all material respects on the date as of which such information is
stated or certified; provided that, with respect to projected financial
information, the Borrower represents and warrants only that such information
represents the Borrower’s expectations regarding future performance, based upon
historical information and reasonable assumptions, it being understood,
however, that actual results may differ from the projected results described in
the financial projections.  The Borrower
has disclosed to the Administrative Agent, in writing any and all facts which
have or may have (to the extent the Borrower can now reasonably foresee) a
Material Adverse Effect.

SECTION
4.10.              Solvency.
On the Closing Date and after giving effect to the transactions contemplated by
the Loan Documents occurring on the Closing Date, the Borrower will be Solvent.

 29
 

SECTION
4.11.              Use of
Proceeds. All proceeds of the Loans will be used by the Borrower only in
accordance with the provisions hereof. 
Neither the making of any Loan nor the use of the proceeds thereof will
violate or be inconsistent with the provisions of regulations T, U, or X of the
Federal Reserve Board.

SECTION
4.12.              Governmental
Approvals. No order, consent, approval, license, authorization, or
validation of, or filing, recording or registration with, or exemption by, any
governmental or public body or authority, or any subdivision thereof, is
required to authorize, or is required in connection with the execution, delivery
and performance of any Loan Document or the consummation of any of the
transactions contemplated thereby other than those that have already been duly
made or obtained and remain in full force and effect or those which, if not
made or obtained, would not have a Material Adverse Effect;

SECTION
4.13.              Investment
Company Act. Neither the Borrower nor any Consolidated Subsidiary is (x) an
“investment company” or a company “controlled” by an “investment company”,
within the meaning of the Investment Company Act of 1940, as amended, or (y)
subject to any other federal or state law or regulation which purports to
restrict or regulate its ability to borrow money.

SECTION
4.14.              Principal
Offices. As of the Closing Date, the principal office, chief executive
office and principal place of business of the Borrower is 1114 Avenue of the
Americas, New York, NY 10036.

SECTION
4.15.              REIT
Status. Borrower is qualified and Borrower will continue to qualify as a
real estate investment trust under the Code.

SECTION 4.16.              Patents, Trademarks, etc. The
Borrower has obtained and holds in full force and effect all patents,
trademarks, servicemarks, trade names, copyrights and other such rights, free
from burdensome restrictions, which are necessary for the operation of its
business as presently conducted, the impairment of which is likely to have a
Material Adverse Effect.

SECTION
4.17.              Judgments.
As of the Closing Date, there are no final, non-appealable judgments or decrees
in an aggregate amount of Ten Million Dollars ($10,000,000) or more entered by
a court or courts of competent jurisdiction against the Borrower or any
Consolidated Subsidiary or, to the extent such judgment would be recourse to
Borrower or any of its Consolidated Subsidiaries (other than judgments as to
which, and only to the extent, a reputable insurance company has acknowledged
coverage of such claim in writing or which have been paid or stayed).

SECTION
4.18.              No Default.
No Event of Default or, to the best of the Borrower’s knowledge, Default exists
under or with respect to any Loan Document and the Borrower is not in default
in any material respect beyond any applicable grace period under or with
respect to any other material agreement, instrument or undertaking to which it
is a party or by which it or any of its property is bound in any respect, the
existence of which default is likely to result in a Material Adverse Effect.

 30

SECTION
4.19.              Licenses,
etc. The Borrower has obtained and does hold in full force and effect, all
franchises, licenses, permits, certificates, authorizations, qualifications,
accreditation, easements, rights of way and other consents and approvals which
are necessary for the operation of its businesses as presently conducted, the
absence of which is likely to have a Material Adverse Effect.

SECTION
4.20.              Compliance
With Law. To the Borrower’s knowledge, the Borrower and each of its assets
are in compliance in all material respects with all laws, rules, regulations,
orders, judgments, writs and decrees, the failure to comply with which is
likely to have a Material Adverse Effect.

SECTION
4.21.              No
Burdensome Restrictions. Except as may have been disclosed by the Borrower
in writing to the Banks prior to the Closing Date, the Borrower is not a party
to any agreement or instrument or subject to any other obligation or any
charter or corporate or partnership restriction, as the case may be, which,
individually or in the aggregate, is likely to have a Material Adverse Effect.

SECTION
4.22.              Brokers’
Fees. The Borrower has not dealt with any broker or finder with respect to
the transactions contemplated by this Agreement or otherwise in connection with
this Agreement, and the Borrower has not done any act, had any negotiations or
conversation, or made any agreements or promises which will in any way create
or give rise to any obligation or liability for the payment by the Borrower of
any brokerage fee, charge, commission or other compensation to any party with
respect to the transactions contemplated by the Loan Documents, other than the
fees payable to the Administrative Agent and the Banks, and certain other
Persons as previously disclosed in writing to the Administrative Agent.

SECTION
4.23.              Labor
Matters. Except as disclosed on Schedule 4.6, there are no
collective bargaining agreements or Multiemployer Plans covering the employees
of the Borrower or any member of the ERISA Group, and the Borrower has not suffered
any material strikes, walkouts, work stoppages or other material labor
difficulty within the last five years.

SECTION
4.24.              Insurance.
The Borrower currently maintains 100% replacement cost insurance coverage
(subject to customary deductibles) in respect of each of its Real Property
Assets, as well as commercial general liability insurance (including, without
limitation, “builders’ risk” where applicable) against claims for personal, and
bodily injury and/or death, to one or more persons, or property damage, as well
as workers’ compensation insurance, in each case with respect to liability and
casualty insurance with insurers having an A.M. Best policyholders’ rating of
not less than A-/VII in amounts no less than customarily carried by owners of properties
similar to, and in the same locations as, Borrower’s Real Property Assets.

SECTION
4.25.              Organizational
Documents. The documents delivered pursuant to Section 3.1(e) constitute,
as of the Closing Date, all of the organizational documents (together with all
amendments and modifications thereof) of the Borrower. The Borrower represents
that it has delivered to the Administrative Agent true, correct and complete
copies of each such document.

 31
 

SECTION 4.26.              Unencumbered Assets and
Indebtedness. As of the date hereof, Schedule 1.1 accurately sets
forth (i) total Unencumbered Assets  (ii)
all Unsecured Debt, and (iii) all Secured Debt. All of the information set
forth on Schedule 1.1 is true and correct in all material respects.

ARTICLE
V

AFFIRMATIVE
AND NEGATIVE COVENANTS

The Borrower
covenants and agrees that, so long as any Bank has any Commitment hereunder or
any Obligation remains unpaid:

SECTION
5.1.                Information.
The Borrower will deliver to each of the Banks or post to Intralinks provided
such information is not otherwise publicly available:

(a)           as soon as available and in any event within five (5)
Business Days after the same is required to be filed with the Securities and
Exchange Commission (but in no event later than 95 days after the end of each
Fiscal Year of the Borrower) a consolidated balance sheet of the Borrower and
its Consolidated Subsidiaries as of the end of such Fiscal Year and the related
consolidated statements of Borrower’s operations and consolidated statements of
Borrower’s cash flow for such Fiscal Year, setting forth in each case in
comparative form the figures for the previous Fiscal Year (if available), all
reported in a manner acceptable to the Securities and Exchange Commission on
Borrower’s Form 10-K and reported on by PricewaterhouseCoopers LLP or other
independent public accountants of nationally recognized standing;

(b)           (i)
as soon as available and in any event within five (5) Business Days after the
same is required to be filed with the Securities and Exchange Commission (but
in no event later than 50 days after the end of each of the first three Fiscal
Quarters of each Fiscal Year of the Borrower), a consolidated balance sheet of
the Borrower and its Consolidated Subsidiaries as of the end of such Fiscal
Quarter and the related consolidated statements of Borrower’s operations and
consolidated statements of Borrower’s cash flow for such quarter and for the
portion of the Borrower’s Fiscal Year ended at the end of such Fiscal Quarter,
all reported in the form provided to the Securities and Exchange Commission on
Borrower’s Form 10-Q, together with (ii) such other information reasonably
requested by the Administrative Agent or any Bank;

(c)           simultaneously
with the delivery of each set of financial statements referred to in clauses
(a) and (b) above, a certificate of a financial officer of the Borrower (i)
setting forth in reasonable detail the calculations required to establish
whether the Borrower was in compliance with the requirements of Section 5.8 on
the date of such financial statements; (ii) certifying (x) that such financial
statements fairly present the financial condition and the results of operations
of the Borrower on the dates and for the periods indicated, on the basis of
GAAP, with respect to the Borrower subject, in the case of interim financial
statements, to normally recurring year-end adjustments, and (y) that such
officer has reviewed the terms of the Loan Documents and has made, or caused to
be made under his or her supervision, a review in reasonable detail of the
business and condition of the Borrower during the period beginning on the date
through which the last such review was made pursuant to this Section 5.1(c)
(or, in the 

 32
 

case of the first certification pursuant to this Section 5.1(c), the
Closing Date) and ending on a date not more than ten (10) Business Days prior
to, but excluding, the date of such delivery and that (1) on the basis of such
financial statements and such review of the Loan Documents, no Event of Default
existed under Section 6.1(b) with respect to Sections 5.8 and 5.9 at or as of
the date of said financial statements, or with respect to Section 5.8(a), at
any time, and (2) on the basis of such review of the Loan Documents and the
business and condition of the Borrower, to the best knowledge of such officer,
as of the last day of the period covered by such certificate no Default or
Event of Default under any other provision of Section 6.1 occurred and is
continuing or, if any such Default or Event of Default has occurred and is continuing,
specifying the nature and extent thereof and, the action the Borrower proposes
to take in respect thereof.  Such
certificate shall set forth the calculations required to establish the matters
described in clauses (1) and (2) above;

(d)           (i)
within five (5) Business Days after any officer of the Borrower obtains
knowledge of any Default, if such Default is then continuing, a certificate of
the chief financial officer, or other executive officer of the Borrower,
setting forth the details thereof and the action which the Borrower is taking
or proposes to take with respect thereto; and (ii) promptly and in any event
within five (5) Business Days after the Borrower obtains knowledge thereof,
notice of (x) any litigation or governmental proceeding pending or threatened
against the Borrower or any Consolidated Subsidiary or its directly or
indirectly owned Real Property Assets as to which there is a reasonable
possibility of an adverse determination and which, if adversely determined, is
likely to individually or in the aggregate, result in a Material Adverse
Effect, and (y) any other event, act or condition which is likely to result in
a Material Adverse Effect;

(e)           promptly
upon the mailing thereof to the shareholders of Borrower generally, copies of
all proxy statements so mailed;

(f)            promptly
and in any event within thirty (30) days, if and when any member of the ERISA
Group (i) gives or is required to give notice to the PBGC of any “reportable
event” (as defined in Section 4043 of ERISA) with respect to any Plan which
might constitute grounds for a termination of such Plan under Title IV of
ERISA, or knows that the plan administrator of any Plan has given or is
required to give notice of any such reportable event, a copy of the notice of
such reportable event given or required to be given to the PBGC; (ii) receives
notice of complete or partial withdrawal liability under Title IV of ERISA or
notice that any Multiemployer Plan is in reorganization, is insolvent or has
been terminated, a copy of such notice; (iii) receives notice from the PBGC
under Title IV of ERISA of an intent to terminate, impose liability (other than
for premiums under Section 4007 of ERISA) in respect of, or appoint a trustee
to administer any Plan, a copy of such notice; (iv) applies for a waiver of the
minimum funding standard under Section 412 of the Code, a copy of such
application; (v) gives notice of intent to terminate any Plan under Section
4041(c) of ERISA, a copy of such notice and other information filed with the
PBGC; (vi) gives notice of withdrawal from any Plan pursuant to Section 4063 of
ERISA, a copy of such notice; or (vii) fails to make any payment or
contribution to any Plan or Multiemployer Plan or makes any amendment to any
Plan which has resulted or could result in the imposition of a Lien or the
posting of a bond or other security, and, in the case of any occurrence covered
by any of clauses (i) through (vii) above, which occurrence would reasonably be
expected to result in a Material Adverse Effect, a certificate of the chief
financial officer or the chief accounting officer of the Borrower setting forth
details as to such occurrence

 33
 

 and action, if any, which the
Borrower or applicable member of the ERISA Group is required or proposes to
take;

(g)           promptly
and in any event within ten (10) days after the Borrower obtains actual
knowledge of any of the following events, a certificate of the Borrower,
executed by an officer of the Borrower, specifying the nature of such
condition, and the Borrower’s or, if the Borrower has actual knowledge thereof,
the Environmental Affiliate’s proposed initial response thereto: (i) the
receipt by the Borrower, or any of the Environmental Affiliates of any
communication (written or oral), whether from a governmental authority,
citizens group, employee or otherwise, that alleges that the Borrower, or any
of the Environmental Affiliates, is not in compliance with applicable
Environmental Laws, and such noncompliance is likely to have a Material Adverse
Effect, (ii) the existence of any Environmental Claim pending against the
Borrower or any Environmental Affiliate and such Environmental Claim is likely
to have a Material Adverse Effect or (iii) any release, emission, discharge or
disposal of any Material of Environmental Concern that is likely to form the
basis of any Environmental Claim against the Borrower or any Environmental
Affiliate which in any such event is likely to have a Material Adverse Effect;

(h)           promptly
and in any event within five (5) Business Days after receipt of any notices or
correspondence from any company or agent for any company providing insurance
coverage to the Borrower relating to any loss which is likely to result in a
Material Adverse Effect, copies of such notices and correspondence;

(i)            simultaneously
with the delivery of the information required by Sections 5.1(a) and (b), a
statement of all Secured Debt (in each case, on a Subsidiary by Subsidiary
basis), as well as the total amount of Unsecured Debt and Value of the
Unencumbered Assets;

(j)            promptly
and in any event within ten (10) days after an event or events of default with
respect to Non-Recourse Indebtedness in an aggregate amount equal to or greater
than $100,000,000 of the Borrower, its Consolidated Subsidiaries and/or
Borrower’s Share of Non-Recourse Indebtedness of Investment Affiliates,
Borrower shall deliver to the Administrative Agent a recalculation of the
Consolidated Tangible Net Worth, reflecting the effects of such event or events
of default, as well as any other changes in the Borrower’s Consolidated
Tangible Net Worth; and

(k)           from
time to time such additional information regarding the financial condition or
operations of the Borrower and its Subsidiaries as the Administrative Agent, at
the request of any Bank, may reasonably request in writing, so long as
disclosure of such information could not result in a violation of, or expose
the Borrower or its Subsidiaries to any material liability under, any
applicable law, statute, ordinance or regulation or any agreements with
unaffiliated third parties that are binding on the Borrower or any of its
Subsidiaries or on any Property of any of them.

SECTION
5.2.                Payment
of Obligations. The Borrower and its Consolidated Subsidiaries will pay and
discharge, at or before maturity, all their respective material obligations and
liabilities including, without limitation, any such material obligations
pursuant to any agreement by which it or any of its properties is bound, in
each case where the 

 34
 

failure to so pay or
discharge such obligations or liabilities is likely to result in a Material
Adverse Effect, and will maintain in accordance with GAAP, appropriate reserves
for the accrual of any of the same.

SECTION
5.3.                Maintenance
of Property; Insurance; Leases.

(a)           The Borrower will keep, and will cause each Consolidated
Subsidiary to keep, all property useful and necessary in its business,
including without limitation each of its Real Property Assets (for so long the
same constitutes a Real Property Asset), in good repair, working order and
condition, ordinary wear and tear excepted, in each case where the failure to
so maintain and repair will have a Material Adverse Effect.

(b)           The
Borrower shall maintain, or cause to be maintained, insurance described in
Section 4.24 hereof with insurers meeting the qualifications described therein,
which insurance shall in any event not provide for less coverage than insurance
customarily carried by owners of properties similar to, and in the same
locations as, Borrower’s Real Property Assets. 
The Borrower will deliver to the Administrative Agent (i) upon the
reasonable request of the Administrative Agent from time to time certificates
of insurers evidencing the insurance carried, (ii) within five (5) days of
receipt of notice from any insurer a copy of any notice of cancellation or
material change in coverage required by Section 4.24 from that existing on the
date of this Agreement and (iii) forthwith, notice of any cancellation or
nonrenewal (without replacement) of coverage by the Borrower.

SECTION
5.4.                Maintenance
of Existence. The Borrower will preserve, renew and keep in full force and
effect, its corporate existence and its rights, privileges and franchises
necessary for the normal conduct of its business unless the failure to maintain
such rights and franchises does not have a Material Adverse Effect.

SECTION
5.5.                Compliance
with Laws. The Borrower will, and will cause its Consolidated Subsidiaries
to, comply in all material respects with all applicable laws, ordinances,
rules, regulations, and requirements of governmental authorities (including,
without limitation, Environmental Laws, and all zoning and building codes with
respect to its Real Property Assets and ERISA and the rules and regulations
thereunder and all federal securities laws) except where the necessity of
compliance therewith is contested in good faith by appropriate proceedings or
where the failure to do so will not have a Material Adverse Effect or expose
Administrative Agent or Banks to any material liability therefor.

SECTION
5.6.                Inspection
of Property, Books and Records. The Borrower will keep proper books of
record and account in which full, true and correct entries shall be made of all
dealings and transactions in relation to its business and activities in
conformity with GAAP, modified as required by this Agreement and applicable
law; and will permit representatives of any Bank, at such Bank’s expense, or
from and after an Event of Default, at Borrower’s expense, so long as
disclosure of such information could not result in a violation of, or expose
the Borrower or any of its Subsidiaries to any material liability under, any
applicable law, ordinance or regulation or any agreements with unaffiliated
third parties that are binding on the Borrower or any of its Subsidiaries, to
examine and make abstracts from any of its books and records and to discuss its
affairs, finances and accounts with its officers and 

 35
 

independent public
accountants, all at such reasonable times during normal business hours, upon
reasonable prior notice and as often as may reasonably be desired.

SECTION
5.7.                Existence.
The Borrower shall do or cause to be done, all things necessary to preserve and
keep in full force and effect its and its Consolidated Subsidiaries’ existence
and its patents, trademarks, servicemarks, tradenames, copyrights, franchises,
licenses, permits, certificates, authorizations, qualifications, accreditation,
easements, rights of way and other rights, consents and approvals the
nonexistence of which is likely to have a Material Adverse Effect.

SECTION
5.8.                Financial
Covenants.

(a)           Minimum Consolidated Tangible Net Worth. The
Consolidated Tangible Net Worth of the Borrower determined in conformity with
GAAP will at no time be less than the sum of Two Billion One Hundred and Sixty
Seven Million Three Hundred and Ten Thousand and Four Hundred and Fifty Dollars
($2,167,310,450) and sixty five percent (65%) of the Net Offering Proceeds from
Capital Stock of the Borrower (other than proceeds used within thirty (30) days
after the issuance giving rise to such Net Offering Proceeds to redeem, retire
or repurchase ownership or equity interests in Borrower, up to the amount paid
by Borrower in connection with such redemption, retirement or repurchase,
where, for the avoidance of doubt, the net effect is that Borrower shall not
have increased its Consolidated Tangible Net Worth as a result of any such
proceeds) received by the Borrower subsequent to March 31, 2007.

(b)           Total
Indebtedness to Net Worth. As of the last day of each Fiscal Quarter, the
ratio of Total Indebtedness to the Borrower’s Net Worth shall be equal to or
less than 5.00:1.00.

(c)           EBITDA
to Fixed Charges Ratio. The ratio of EBITDA to Fixed Charges, for the then
most recently completed four (4) consecutive Fiscal Quarters, shall be equal to
or greater than 1.50:1.00.

(d)           Unencumbered
Pool. The ratio of the Value of the Unencumbered Assets to Unsecured Debt,
as of the last day of each Fiscal Quarter, shall be equal to or greater than
1.20:1.00.

(e)           Dividends.
For so long as no Event of Default shall have occurred and be outstanding,
Borrower will not pay any dividends to holders of common equity in the
Borrower  in excess of the greater of (x)
110% of Adjusted Earnings for the then most recently completed four (4)
consecutive Fiscal Quarters, and (y) such amounts as are necessary to enable
the Borrower to maintain the Borrower’s status as a real estate investment
trust. For so long as an Event of Default shall have occurred and be
outstanding, Borrower will not, as determined on an aggregate annual basis, pay
any dividends in excess of those amounts required to be paid in order for the
Borrower to maintain its status as a real estate investment trust.

SECTION
5.9.                Restriction
on Fundamental Changes. (a) Borrower shall not enter into any merger or consolidation
without obtaining the prior written consent thereto in writing of the Required
Banks, unless the Borrower is the surviving entity, and the same will not
result in the occurrence of an Event of Default. Borrower shall not liquidate,
wind-up

 36
 

or dissolve (or suffer
any liquidation or dissolution), discontinue its business or convey, lease,
sell, transfer or otherwise dispose of, in one transaction or series of
transactions, all or substantially all of its business or property, whether now
or hereafter acquired.

(b)           The Borrower shall not amend its articles of
incorporation, bylaws, or other organizational documents in any manner that
would have a Material Adverse Effect without the Required Banks’ consent.

SECTION
5.10.              Changes in
Business. Borrower’s primary business will not be substantially different
from that conducted by Borrower on the Closing Date and shall include ownership
and management of Credit Tenant Lease Assets and Loan Assets. The Borrower
shall carry on its business operations through the Borrower and its
Consolidated Subsidiaries and its Investment Affiliates.

SECTION
5.11.              Borrower
Status.  Borrower shall at all times
(i) remain a publicly traded company listed for trading on the New York Stock
Exchange (or another nationally recognized stock exchange), and (ii) maintain
its status as a self-directed and self-administered REIT under the Code.

SECTION
5.12.              Other
Indebtedness. (a)      Borrower shall
not incur or maintain or permit any Secured Debt which is Recourse Debt in
excess of an amount equal to 20% of Consolidated Tangible Net Worth. Any
Indebtedness maintained or incurred by any Subsidiary of Borrower that is
Recourse Debt of such Subsidiary shall be deemed to be Secured Debt for
purposes of this Section 5.12 and Section 5.8; provided that
Indebtedness of any Guarantor that is not secured shall not be so deemed to be
Secured Debt.

(b)           The Borrower shall not permit any
Guarantor to incur any Indebtedness other than Indebtedness evidenced by the
Guarantee Agreement or Indebtedness owed to the Borrower.

SECTION
5.13.              Forward
Equity Contracts. Borrower shall not enter into any forward equity
contracts.

ARTICLE
VI

DEFAULTS

SECTION
6.1.                Events of
Default. An “Event of Default” shall have occurred if one or more of the
following events shall have occurred and be continuing:

(a)           the Borrower shall fail to (i) pay when due any principal
of any Loan, or (ii) the Borrower shall fail to pay when due interest on any
Loan or any fees or any other amount payable to Administrative Agent or the
Banks hereunder and the same shall continue for a period of five (5) days after
the same becomes due;

(b)           the
Borrower shall fail to observe or perform any covenant contained in Section
5.8, Section 5.9, Section 5.10, Section 5.11 or Section 5.12;

 37
 

(c)           the
Borrower shall fail to observe or perform any covenant or agreement contained
in this Agreement (other than those covered by clause (a), (b), (e), (f), (g),
(h), (i), (l) or (m) of this Section 6.1) for 30 days after written notice
thereof has been given to the Borrower by the Administrative Agent; or if such
default is of such a nature that it cannot with reasonable effort be completely
remedied within said period of thirty (30) days such additional period of time
as may be reasonably necessary to cure same, provided Borrower commences such
cure within said thirty (30) day period and diligently prosecutes same, until
completion, but in no event shall such extended period exceed ninety (90) days;

(d)           any
representation, warranty, certification or statement made by the Borrower in
this Agreement or in any certificate, financial statement or other document
delivered pursuant to this Agreement shall prove to have been incorrect in any
material respect when made (or deemed made) and, with respect to such representations,
warranties, certifications or statements not known by the Borrower at the time
made or deemed made to be incorrect, the defect causing such representation or
warranty to be incorrect in a material respect when made (or deemed made) is
not removed, corrected or cured within thirty (30) days after the earlier of
written notice thereof from Administrative Agent to Borrower and the Borrower
otherwise obtains knowledge thereof;

(e)           the
Borrower or any Subsidiary shall default in the payment when due (whether by
scheduled maturity, required prepayment, acceleration, demand or otherwise) of
any amount owing in respect of any Recourse Debt (other than the Obligations)
for which the aggregate outstanding principal amounts exceed Seventy-Five
Million Dollars ($75,000,000) and such default shall continue beyond the giving
of any required notice and the expiration of any applicable grace period and
such default has not been waived, in writing, by the holder of any such Debt;
or the Borrower or any Subsidiary shall default in the performance or
observance of any obligation or condition with respect to any such Recourse
Debt or any other event shall occur or condition exist beyond the giving of any
required notice and the expiration of any applicable grace period, if the
effect of such default, event or condition is to accelerate the maturity of any
such indebtedness or to permit (without any further requirement of notice or
lapse of time) the holder or holders thereof, or any trustee or agent for such
holders, to accelerate the maturity of any such indebtedness;

(f)            the
Borrower or any Consolidated Subsidiary of Borrower or any Investment Affiliate
of Borrower to which, either individually or in the aggregate, $100,000,000 or
more of Borrower’s Consolidated Tangible Net Worth is attributable, shall
commence a voluntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to itself or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidate, custodian or other
similar official of it or any substantial part of its property, or shall
consent to any such relief or to the appointment of or taking possession by any
such official in an involuntary case or other proceeding commenced against it,
or shall make a general assignment for the benefit of creditors, or shall fail
generally to pay its debts as they become due, or shall take any action to
authorize any of the foregoing;

(g)           an
involuntary case or other proceeding shall be commenced against the Borrower or
any Consolidated Subsidiary of Borrower or any Investment Affiliate of Borrower

 38
 

to which, either individually or in the aggregate, $100,000,000 or more
of Borrower’s Consolidated Tangible Net Worth is attributable, seeking
liquidation, reorganization or other relief with respect to it or its debts
under any bankruptcy, insolvency or other similar law now or hereafter in
effect or seeking the appointment of a trustee, receiver, liquidator, custodian
or other similar official of it or any substantial part of its property, and
such involuntary case or other proceeding shall remain undismissed and unstayed
for a period of 90 days; or an order for relief shall be entered against the
Borrower under the federal bankruptcy laws as now or hereafter in effect;

(h)           one
or more final, non-appealable judgments or decrees in an aggregate amount of
Seventy-Five Million Dollars ($75,000,000) or more shall be entered by a court
or courts of competent jurisdiction against Borrower or any Consolidated
Subsidiary (other than any judgment as to which, and only to the extent, a
reputable insurance company has acknowledged coverage of such claim in
writing), and (i) any such judgments or decrees shall not be stayed,
discharged, paid, bonded or vacated within ninety (90) days or (ii) enforcement
proceedings shall be commenced by any creditor on any such judgments or
decrees;

(i)            there
shall be a replacement of a majority of the Board of Directors of the Borrower
over a two-year period from the directors who constituted the Board of
Directors of the Borrower at the beginning of such period, and such replacement
shall not have been approved by a vote of at least a majority of the Board of
Directors of the Borrower then still in office who were either members of such
Board of Directors at the beginning of such period or whose election as a
member of such Board of Directors was previously so approved;

(j)            any
Person or “group” (as such term is defined in applicable federal securities
laws and regulations) shall become the owner, directly or indirectly,
beneficially or of record, of shares representing more than forty  percent (40%) of the aggregate ordinary
voting power represented by the issued and outstanding common shares of the
Borrower;

(k)           if
any Termination Event with respect to a Plan or Multiemployer Plan shall occur
as a result of which Termination Event or Events any member of the ERISA Group
has incurred or may incur any liability to the PBGC or any other Person and the
sum (determined as of the date of occurrence of such Termination Event) of the
insufficiency of such Plan or Multiemployer Plan and the insufficiency of any
and all other Plans and Multiemployer Plans with respect to which such a
Termination Event shall occur and be continuing (or, in the case of a Multiple
Employer Plan with respect to which a Termination Event described in clause
(ii) of the definition of Termination Event shall occur and be continuing and
in the case of a liability with respect to a Termination Event which is or
could be a liability of the Borrower rather than a liability of the Plan, the
liability of the Borrower) is equal to or greater than $10,000,000 and which
the Required Banks reasonably determine will have a Material Adverse Effect;

(l)            if,
any member of the ERISA Group shall commit a failure described in Section
302(f)(1) of ERISA or Section 412(n)(1) of the Code and the amount of the lien
determined under Section 302(f)(3) of ERISA or Section 412(n)(3) of the Code
that could reasonably be expected to be imposed on any member of the ERISA
Group or their assets in respect of such failure shall be equal to or greater
than $10,000,000 and which the Required Banks reasonably determine will have a
Material Adverse Effect;

 39
 

(m)          at
any time, for any reason the Borrower repudiates in writing its payment
obligations under any Loan Document; or

(n)           any
assets of Borrower shall constitute “assets” (within the meaning of ERISA or
Section 4975 of the Code, including but not limited to 29 C.F.R. § 2510.3-101
or any successor regulation thereto) of an “employee benefit plan” within the
meaning of Section 3(3) of ERISA or a “plan” within the meaning of Section
4975(e)(1) of the Code.

SECTION
6.2.                Rights
and Remedies. (a) Upon the occurrence of any Event of Default described in
Sections 6.1(f) or (g), the Commitments shall immediately terminate and the
unpaid principal amount of, and any and all accrued interest on, the Loans and
any and all accrued fees and other Obligations hereunder shall automatically
become immediately due and payable, with all additional interest from time to
time accrued thereon and without presentation, demand, or protest or other
requirements of any kind (including, without limitation, valuation and
appraisement, diligence, presentment, notice of intent to demand or accelerate
and notice of acceleration), all of which are hereby expressly waived by the
Borrower for itself; and upon the occurrence and during the continuance of any
other Event of Default, the Administrative Agent, following consultation with
the Banks, may (and upon the demand of the Required Banks shall), by written
notice to the Borrower, in addition to the exercise of all of the rights and
remedies permitted the Administrative Agent and the Banks at law or equity or
under any of the other Loan Documents, declare that the Commitments are
terminated and declare the unpaid principal amount of and any and all accrued
and unpaid interest on the Loans and any and all accrued fees and other
Obligations hereunder to be, and the same shall thereupon be, immediately due
and payable with all additional interest from time to time accrued thereon and
(except as otherwise provided in the Loan Documents) without presentation,
demand, or protest or other requirements of any kind (including, without
limitation, valuation and appraisement, diligence, presentment, notice of
intent to demand or accelerate and notice of acceleration), all of which are
hereby expressly waived by the Borrower for itself.

(b)           Notwithstanding anything to the contrary contained in this
Agreement or in any other Loan Document, the Administrative Agent and the Banks
each agree that any exercise or enforcement of the rights and remedies granted
to the Administrative Agent or the Banks under this Agreement or at law or in
equity with respect to this Agreement or any other Loan Documents shall be
commenced and maintained solely by the Administrative Agent on behalf of the
Administrative Agent and/or the Banks. The Administrative Agent shall act at the
direction of the Required Banks in connection with the exercise of any and all
remedies at law, in equity or under any of the Loan Documents or, if the
Required Banks are unable to reach agreement, then, from and after an Event of
Default, the Administrative Agent may pursue such rights and remedies as it may
determine.

SECTION
6.3.                Notice of
Default. The Administrative Agent shall give notice to the Borrower under
Section 6.1(c) and 6.1(d) promptly upon being requested to do so by the
Required Banks and shall thereupon notify all the Banks thereof. The
Administrative Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default (other than nonpayment of
principal of or interest on the Loans) unless Administrative Agent has received
notice in writing from a Bank or Borrower referring to this Agreement or the
other Loan Documents, describing such event or condition.  Should 

 40
 

Administrative Agent
receive notice of the occurrence of a Default or Event of Default expressly
stating that such notice is a notice of a Default or Event of Default, or
should Administrative Agent send Borrower a notice of Default or Event of
Default, Administrative Agent shall promptly give notice thereof to each Bank.

SECTION
6.4.                Distribution
of Proceeds after Default. Notwithstanding anything contained herein to the
contrary, from and after an Event of Default, to the extent proceeds are
received by Administrative Agent, such proceeds will be distributed to the
Banks pro rata in accordance with the unpaid principal amount of the Loans
reimbursement obligations (giving effect to any participations granted therein
pursuant to Section 9.6).

ARTICLE
VII

THE
AGENTS; CERTAIN MATTERS RELATING TO THE LENDERS

SECTION
7.1.                Appointment
and Authorization. Each Bank irrevocably appoints and authorizes the
Administrative Agent to take such action as agent on its behalf and to exercise
such powers under this Agreement and the other Loan Documents as are delegated
to the Administrative Agent by the terms hereof or thereof, together with all
such powers as are reasonably incidental thereto. Except as set forth in
Section 7.8 hereof, the provisions of this Article VII are solely for the
benefit of Administrative Agent and the Banks, and Borrower shall not have any
rights to rely on or enforce any of the provisions hereof.  In performing its functions and duties under
this Agreement, Administrative Agent shall act solely as an agent of the Banks
and will not assume and shall not be deemed to have assumed any obligation
toward or relationship of agency or trust with or for the Borrower.

SECTION
7.2.                Agency
and Affiliates. JPMorgan Chase Bank, N.A. and Citigroup Global Markets Inc.
each has the same rights and powers under this Agreement as any other Bank and
may exercise or refrain from exercising the same as though it were not the
Administrative Agent or Syndication Agent, as applicable, and JPMorgan Chase
Bank, N.A. and Citigroup Global Markets Inc. and each of their affiliates may
accept deposits from, lend money to, and generally engage in any kind of
business with the Borrower or any Subsidiary or affiliate of the Borrower as if
they were not the Administrative Agent or Syndication Agent, as applicable,
hereunder, and the term “Bank” and “Banks” shall include each of JPMorgan Chase
Bank, N.A. and Citigroup Global Markets Inc., each in its individual capacity.

SECTION
7.3.                Action by
Agents. The obligations of each of the Agents hereunder are only those
expressly set forth herein.  Without
limiting the generality of the foregoing, each of the Agents shall not be
required to take any action with respect to any Default or Event of Default,
except as expressly provided in Article VI. 
The duties of each Agent shall be administrative in nature.  Subject to the provisions of Sections 7.1,
7.5 and 7.6, each Agent shall administer the Loans in the same manner as each
administers its own loans.

SECTION
7.4.                Consultation
with Experts. As between Administrative Agent on the one hand and the Banks
on the other hand, the Administrative Agent may consult with legal counsel (who
may be counsel for the Borrower), independent public accountants and 

 41
 

other experts selected by
it and shall not be liable for any action taken or omitted to be taken by it in
good faith in accordance with the advice of such counsel, accountants or
experts.

SECTION
7.5.                Liability
of Agents. As between each Agent on the one hand and the Banks on the other
hand, none of the Agents nor any of their affiliates nor any of their
respective directors, officers, agents or employees shall be liable for any
action taken or not taken by it in connection herewith (i) with the consent or
at the request of the Required Banks or (ii) in the absence of its own gross
negligence or willful misconduct. As between each Agent on the one hand and the
Banks on the other hand, none of the Agents nor any of their respective
directors, officers, agents or employees shall be responsible for or have any
duty to ascertain, inquire into or verify (i) any statement, warranty or
representation made in connection with this Agreement or any Borrowing
hereunder; (ii) the performance or observance of any of the covenants or
agreements of the Borrower; (iii) the satisfaction of any condition specified
in Article III, except receipt of items required to be delivered to such Agent,
or (iv) the validity, effectiveness or genuineness of this Agreement, the other
Loan Documents or any other instrument or writing furnished in connection
herewith. As between each Agent on the one hand and the Banks on the other
hand, none of the Agents shall incur any liability by acting in reliance upon
any notice, consent, certificate, statement, or other writing (which may be a
bank wire, telex or similar writing) believed by it to be genuine or to be signed
by the proper party or parties.

SECTION
7.6.                Indemnification.
Each Bank shall, ratably in accordance with its Commitment, indemnify the
Agents and the named “Managing Agents” and their affiliates and their
respective directors, officers, agents and employees (to the extent not
reimbursed by the Borrower) against any cost, expense (including, without
limitation, counsel fees and disbursements), claim, demand, action, loss or
liability (except such as result from such indemnitee’s gross negligence or
willful misconduct) that such indemnitee may suffer or incur in connection with
its duties as Agent or “Managing Agent” under this Agreement, the other Loan
Documents or any action taken or omitted by such indemnitee hereunder.  In the event that any Agent shall, subsequent
to its receipt of indemnification payment(s) from Banks in accordance with this
section, recoup any amount from the Borrower, or any other party liable
therefor in connection with such indemnification, such Agent shall reimburse
the Banks which previously made the payment(s) pro rata, based upon the actual
amounts which were theretofore paid by each Bank.  Each Agent shall reimburse such Banks so
entitled to reimbursement within two (2) Business Days of its receipt of such
funds from the Borrower or such other party liable therefor.

SECTION
7.7.                Credit
Decision. Each Bank acknowledges that it has, independently and without
reliance upon the Administrative Agent, the Syndication Agent or any other
Bank, and based on such documents and information as it has deemed appropriate,
made its own credit analysis and decision to enter into this Agreement. Each
Bank also acknowledges that it will, independently and without reliance upon
the Administrative Agent, Syndication Agent or any other Bank, and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking any action
under this Agreement.

SECTION
7.8.                Successor
Agent. The Administrative Agent may resign at any time by giving notice
thereof to the Banks, the Borrower and each other, and the 

 42
 

Administrative Agent
shall resign in the event its Commitment (without giving effect to any
Participants) is reduced to less than Ten Million Dollars ($10,000,000) unless
as a  result of a cancellation or
reduction in the aggregate Commitments. Upon any such resignation, the Required
Banks shall have the right to appoint a successor Administrative Agent, which
successor Administrative Agent shall, provided no Event of Default has occurred
and is then continuing, be subject to Borrower’s approval, which approval shall
not be unreasonably withheld or delayed. If no successor Administrative Agent
shall have been so appointed by the Required Banks and approved by the Borrower,
and shall have accepted such appointment, within 30 days after the retiring
Administrative Agent gives notice of resignation, then the retiring
Administrative Agent may, on behalf of the Banks, appoint a successor
Administrative Agent, which shall be the Administrative Agent, who shall act
until the Required Banks shall appoint an Administrative Agent.  Any appointment of a successor Administrative
Agent by Required Banks or the retiring Administrative Agent pursuant to the
preceding sentence shall, provided no Event of Default has occurred and is then
continuing, be subject to the Borrower’s approval, which approval shall not be
unreasonably withheld or delayed.  Upon
the acceptance of its appointment as the Administrative Agent hereunder by a
successor Administrative Agent, such successor Administrative Agent shall
thereupon succeed to and become vested with all the rights and duties of the
retiring Administrative Agent and the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder. After any retiring
Administrative Agent’s resignation hereunder, the provisions of this Article
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was the Administrative Agent. 
For gross negligence or willful misconduct, as determined by all the
Banks (excluding for such determination Administrative Agent in its capacity as
a Bank), Administrative Agent may be removed at any time by giving at least
thirty (30) Business Days’ prior written notice to Administrative Agent and
Borrower.  Such resignation or removal
shall take effect upon the acceptance of appointment by a successor
Administrative Agent, in accordance with the provisions of this Section 7.8.

SECTION
7.9.                Consents
and Approvals. All communications from Administrative Agent to the Banks
requesting the Banks’ determination, consent, approval or disapproval (i) shall
be given in the form of a written notice to each Bank, (ii) shall be
accompanied by a description of the matter or item as to which such
determination, approval, consent or disapproval is requested, or shall advise
each Bank where such matter or item may be inspected, or shall otherwise
describe the matter or issue to be resolved, (iii) shall include, if reasonably
requested by a Bank and to the extent not previously provided to such Bank,
written materials and a summary of all oral information provided to
Administrative Agent by Borrower in respect of the matter or issue to be
resolved, and (iv) shall include Administrative Agent’s recommended course of
action or determination in respect thereof ). 
Each Bank shall reply promptly, but in any event within ten (10)
Business Days after receipt of the request therefor from Administrative Agent
(the “Bank Reply Period”). With respect to decisions requiring the
approval of the Required Banks, or all the Banks, Administrative Agent shall
submit its recommendation or determination for approval of or consent to such
recommendation or determination to all Banks and upon receiving the required approval
or consent shall follow the course of action or determination of the Required
Banks or all the Banks, as the case may be.

 43

ARTICLE
VIII

CHANGE
IN CIRCUMSTANCES

SECTION
8.1.                Basis for
Determining Interest Rate Inadequate or Unfair. If on or prior to the first
day of any Interest Period for any Euro-Currency Borrowing the Administrative
Agent determines in good faith that deposits in Dollars are not being offered
in the relevant market for such Interest Period, the Administrative Agent shall
forthwith give notice thereof to the Borrower and the Banks, whereupon until
the Administrative Agent notifies the Borrower that the circumstances giving
rise to such suspension no longer exist, the obligations of the Banks to make
Euro-Currency Loans in Dollars shall be suspended.  In such event unless the Borrower notifies
the Administrative Agent on or before the second (2nd) Euro-Currency Business Day before, but
excluding, the date of any Euro-Currency Borrowing for which a Notice of
Borrowing has previously been given that it elects not to borrow on such date,
such Borrowing shall instead be made as a Base Rate Borrowing.

SECTION
8.2.                Illegality.
If, on or after the date of this Agreement, the adoption of any applicable law,
rule or regulation, or any change in any applicable law, rule or regulation, or
any change in the interpretation or administration thereof by any governmental
authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by any Bank (or its Euro-Currency Lending
Office) with any request or directive (whether or not having the force of law)
made after the Closing Date of any such authority, central bank or comparable
agency shall make it unlawful for any Bank (or its Euro-Currency Lending
Office) to make, maintain or fund its Euro-Currency Loans, whereupon until such
Bank notifies the Borrower and the Administrative Agent that the circumstances
giving rise to such suspension no longer exist, the obligation of such Bank in
the case of such event to make Euro-Currency Loans shall be suspended. With
respect to Euro-Currency Loans, before giving any notice to the Administrative
Agent pursuant to this Section, such Bank shall designate a different
Euro-Currency Lending Office if such designation will avoid the need for giving
such notice and will not, in the reasonable judgment of such Bank, be otherwise
commercially disadvantageous to such Bank.

If at any time, it
shall be unlawful for any Bank to make, maintain or fund any of its
Euro-Currency Loans, the Borrower shall have the right, upon five (5) Business
Days’ notice to the Administrative Agent, to either (x) cause a bank,
reasonably acceptable to the Administrative Agent, to offer to purchase the
Commitments of such Bank for an amount equal to such Bank’s outstanding Loans,
together with accrued and unpaid interest and fees thereon and all other
amounts due to such Bank are concurrently therewith paid in full to such Bank,
and to become a Bank hereunder, or obtain the agreement of one or more existing
Banks to offer to purchase the Commitments of such Bank for such amount, which
offer such Bank is hereby required to accept, or (y) to repay in full all Loans
then outstanding of such Bank, together with interest due thereon and any and
all fees and other amounts due hereunder, upon which event, such Bank’s
Commitments shall be deemed to be canceled.

 44
 

SECTION
8.3.                Increased
Cost and Reduced Return.

(a)           If, on or after the date hereof, the adoption of any
applicable law, rule or regulation, or any change in any applicable law, rule
or regulation, or any change in the interpretation or administration thereof by
any governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Bank (or its
Applicable Lending Office) with any request or directive (whether or not having
the force of law) made after the Closing Date of any such authority, central
bank or comparable agency, shall impose, modify or deem applicable any reserve
(including, without limitation, any such requirement imposed by the Board of
Governors of the Federal Reserve System (but excluding with respect to any
Euro-Currency Loan any such requirement reflected in an applicable
Euro-Currency Reserve Percentage)), special deposit, insurance assessment or
similar requirement against assets of, deposits with or for the account of, or
credit extended by, any Bank (or its Applicable Lending Office) or shall impose
on any Bank (or its Applicable Lending Office) or on the interbank market any
other condition materially more burdensome in nature, extent or consequence
than those in existence as of the Loan Effective Date affecting such Bank’s
Euro-Currency Loans or its obligation to make Euro-Currency Loans, and the
result of any of the foregoing is to increase the cost to such Bank (or its
Applicable Lending Office) of making or maintaining any Euro-Currency Loan, or
to reduce the amount of any sum received or receivable by such Bank (or its
Applicable Lending Office) under this Agreement or under its Note with respect
to such Euro-Currency Loans, by an amount reasonable determined by such Bank to
be material, then, within 15 days after demand by such Bank (with a copy to the
Administrative Agent), the Borrower shall pay to such Bank such additional
amount or amounts (based upon a reasonable allocation thereof by such Bank to
the Euro-Currency Loans made by such Bank hereunder) as will compensate such
Bank for such increased cost or reduction to the extent such Bank generally
imposes such additional amounts on other borrowers of such Bank in similar
circumstances.

(b)           If
any Bank shall have reasonably determined that, after the date hereof, the
adoption of any applicable law, rule or regulation regarding capital adequacy,
or any change in any such law, rule or regulation, or any change in the
interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or any request or directive regarding capital adequacy (whether or not
having the force of law) made after the Closing Date of any such authority,
central bank or comparable agency, has or would have the effect of reducing the
rate of return on capital of such Bank (or its Parent) as a consequence of such
Bank’s obligations hereunder to a level below that which such Bank (or its
Parent) could have achieved but for such adoption, change, request or directive
(taking into consideration its policies with respect to capital adequacy) by an
amount reasonably deemed by such Bank to be material, then from time to time,
within 15 days after demand by such Bank (with a copy to the Administrative
Agent), the Borrower shall pay to such Bank such additional amount or amounts
as will compensate such Bank (or its Parent) for such reduction to the extent
such Bank generally imposes such additional amounts on other borrowers of such
Bank in similar circumstances.

(c)           Each
Bank will promptly notify the Borrower and the Administrative Agent of any
event of which it has knowledge, occurring after the date hereof, which will
entitle such Bank to compensation pursuant to this Section and will designate a
different Applicable Lending Office if such designation will avoid the need
for, or reduce the amount of, such compensation and will not, in the reasonable
judgment of such Bank, be otherwise 

 45
 

disadvantageous to such Bank. Notwithstanding the foregoing, if such
Bank shall fail to notify Borrower of any such event within ninety (90) days
following the end of the month during which such event occurred, then Borrower’s
liability for any amounts described in this Section incurred by such Bank as a
result of such event shall be limited to those attributable to the period
occurring subsequent to the ninetieth (90th) day prior to, but excluding, the date
upon which such Bank actually notified Borrower of the occurrence of such
event. A certificate of any Bank claiming compensation under this Section and
setting forth a reasonably detailed calculation of the additional amount or
amounts to be paid to it hereunder shall be conclusive in the absence of
demonstrable error.  In determining such
amount, such Bank may use any reasonable averaging and attribution methods.

(d)           If
at any time, any Bank has demanded compensation pursuant to this Section 8.3,
the Borrower shall have the right, upon five (5) Business Day’s notice to the
Administrative Agent to either (x) cause a Qualified Institution, reasonably
acceptable to the Administrative Agent, to offer to purchase the Commitments of
such Bank for an amount equal to such Bank’s outstanding Loans plus accrued
interest, fees and other amounts due to such Bank, and to become a Bank
hereunder, or to obtain the agreement of one or more existing Banks to offer to
purchase the Commitments of such Bank for such amount, which offer such Bank is
hereby required to accept, or (y) to repay in full all Loans then outstanding
of such Bank, together with interest and all other amounts due thereon, upon
which event, such Bank’s Commitment shall be deemed to be canceled.

SECTION
8.4.                Taxes.

(a)           Any and all payments by the Borrower to or for the account
of any Bank or the Administrative Agent hereunder or under any other Loan
Document shall be made free and clear of and without deduction for any and all
present or future taxes, duties, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding, in the case
of each Bank and the Administrative Agent, taxes imposed on its income, and
franchise taxes imposed on it, by the jurisdiction under the laws of which such
Bank or the Administrative Agent (as the case may be) is organized or any
political subdivision thereof and, in the case of each Bank, taxes imposed on
its income, and franchise or similar taxes imposed on it, by the jurisdiction
of such Bank’s Applicable Lending Office or any political subdivision thereof
or by any other jurisdiction (or any political subdivision thereof) as a result
of a present or former connection between such Bank or Administrative Agent and
such other jurisdiction or by the United States, except to the extent that such
connection would not have arisen but for entering into the transactions
contemplated hereby (all such non-excluded taxes, duties, levies, imposts,
deductions, charges, withholdings and liabilities being hereinafter referred to
as “Non-Excluded Taxes”). If the Borrower shall be required by law to
deduct any Non-Excluded Taxes from or in respect of any sum payable hereunder
or under any Note, (i) the sum payable shall be increased as necessary so that
after making all required deductions (including, without limitation, deductions
applicable to additional sums payable under this Section 8.4) such Bank or the
Administrative Agent (as the case may be) receives an amount equal to the sum
it would have received had no such deductions been made, (ii) the Borrower
shall make such deductions, (iii) the Borrower shall pay the full amount
deducted to the relevant taxation authority or other authority in accordance
with applicable law and (iv) the Borrower shall furnish to the 

 46
 

Administrative Agent, at its address referred
to in Section 9.1, the original or a certified copy of a receipt evidencing
payment thereof.

(b)           In
addition, the Borrower agrees to pay any present or future stamp or documentary
taxes and any other excise or property taxes, or charges or similar levies
which arise from any payment made hereunder or under any or from the execution
or delivery of, or otherwise with respect to, this Agreement or any Note
(hereinafter referred to as “Other Taxes”).

(c)           In
the event that Non-Excluded Taxes not imposed on the Closing Date are imposed, or
Non-Excluded Taxes imposed on the Closing Date increase, the applicable Bank
shall notify the Administrative Agent and the Borrower of such event in writing
within a reasonable period following receipt of knowledge thereof.
Notwithstanding the foregoing, if such Bank shall fail to notify Borrower of
any such event within ninety (90) days following the end of the month during
which such event occurred, then Borrower’s liability for such additional
Non-Excluded Taxes incurred by such Bank as a result of such event (including
payment of a make whole amount under Section 8.4(a)(i)) shall be limited to
those attributable to the period occurring subsequent to the ninetieth (90th) day prior to, but excluding,
the date upon which such Bank actually notified Borrower of the occurrence of
such event.

(d)           The
Borrower agrees to indemnify each Bank and the Administrative Agent for the
full amount of Non-Excluded Taxes or Other Taxes (including, without
limitation, any Non-Excluded Taxes or Other Taxes imposed or asserted by any
jurisdiction on amounts payable under this Section 8.4) paid by such Bank or
the Administrative Agent (as the case may be) and, so long as such Bank or
Administrative Agent has promptly paid any such Non-Excluded Taxes or Other
Taxes, any liability for penalties and interest arising therefrom or with
respect thereto.  This indemnification
shall be made within 15 days from the date such Bank or the Administrative
Agent (as the case may be) makes demand therefor.

(e)           Each
Bank or Administrative Agent that is a United States person for U.S. federal
income tax purposes, on or prior to the date of its execution and delivery of
this Agreement in the case of each Bank and Administrative Agent listed on the
signature pages hereof and on or prior to the date on which it becomes a Bank
or the Administrative Agent in the case of each other Bank or Administrative
Agent, shall provide the Borrower with two duly completed copies of Internal
Revenue Service Form W-9 or any successor form prescribed by the Internal
Revenue Service and shall provide Borrower with two further copies of any such
form on or before the date any such form or certification expires or becomes
obsolete and after the occurrence of any event requiring a change in the most
recent form previously delivered to Borrower. 
Each Bank and Administrative Agent that is not a United States person
for U.S. federal income tax purposes, on or prior to the date of its execution
and delivery of this Agreement in the case of each Bank and Administrative
Agent listed on the signature pages hereof and on or prior to the date on which
it becomes a Bank or the Administrative Agent in the case of each other Bank or
Administrative Agent, shall provide the Borrower with two duly completed copies
of an Internal Revenue Service Form W-8BEN or W-8ECI, as applicable to such
Bank or Administrative Agent, or any successor form prescribed by the Internal
Revenue Service, and shall provide Borrower with two further copies of any such
form on or before the date that any such form expires or becomes obsolete and
after the occurrence of any event requiring a change in the most recent form
previously delivered by it to Borrower. 
A Bank that 

 47
 

provides copies of the Internal Revenue Service Form W-8BEN and that is
legally entitled to claim the portfolio interest exemption pursuant to Section
881(c) of the Internal Revenue Code of 1986, as amended (the “Code”),
shall further provide Borrower with, together with such Internal Revenue
Service Form W-8BEN, a written confirmation of its entitlement to such
exemption.  To the extent that it is
legally entitled to do so, a Bank shall properly claim that such Bank is
entitled to benefits under an income tax treaty to which the United States is a
party which reduces the rate of, or eliminates, withholding tax on payments of
interest hereunder.  A Bank that is not a
United States person and that grants a participating interest in a Loan or
Commitment to any other person shall provide, in addition to its own forms
specified above, Borrower with two duly completed copies of the Internal
Revenue Service form applicable to such other person, each under the cover of
an Internal Revenue Service Form W-8IMY and a withholding statement prepared in
the manner prescribed by the Internal Revenue Service, or such other forms
and/or certificates that it is legally entitled to provide evidencing such
participant’s entitlement to any exemption from, or reduction in the rate of
U.S. withholding tax, and shall provide Borrower with two further copies of any
such forms and statements on or before the date any such forms or statements
expire or become obsolete and after the occurrence of any event requiring a
change in the most recent form or statement previously delivered to Borrower.  If a Bank fails to timely and properly
provide or update such forms or statements or if the form or statement provided
by a Bank at the time such Bank first becomes a party to this Agreement
indicates a United States withholding tax rate in excess of zero, then backup
withholding or withholding tax resulting from the foregoing shall be considered
excluded from “Non-Excluded Taxes” as defined in Section 8.4(a).

(f)            Upon
reasonable demand by, and at the expense of, Borrower to the Administrative
Agent or any Bank, the Administrative Agent or Bank, as the case may be, shall
deliver to the Borrower, or to such government or taxing authority as the
Borrower may reasonably direct, any form or document that may be required or
reasonably requested in writing in order to allow the Borrower to make a
payment to or for the account of such Bank or the Administrative Agent
hereunder or under any other Loan Document without any deduction or withholding
for or on account of any Non-Excluded Taxes or with such deduction or
withholding at a reduced rate (so long as the completion, execution or
submission of such form or document would not materially prejudice the legal or
commercial position of the party in receipt of such demand), with any such form
or document to be accurate and completed in a manner reasonably satisfactory to
the Borrower making such demand and to be executed and to be delivered with any
reasonably required certification.

(g)           For
any period with respect to which a Bank has failed to provide the Borrower with
the appropriate form pursuant to (and to the extent required by) Section 8.4(e)
(unless such failure is due to a change in treaty, law or regulation occurring
subsequent to the date on which a form originally was required to be provided),
such Bank shall not be entitled to indemnification under Section 8.4(d) with
respect to Non-Excluded Taxes imposed by the United States; provided, however,
that should a Bank, which is otherwise exempt from or subject to a reduced rate
of withholding tax, become subject to Non-Excluded Taxes because of its failure
to deliver a form required hereunder, the Borrower shall take such steps as
such Bank shall reasonably request to assist such Bank to recover such Taxes so
long as Borrower shall incur no cost or liability as a result thereof.

 48
 

(h)           If
the Borrower is required to pay additional amounts to or for the account of any
Bank pursuant to this Section 8.4, then such Bank will change the jurisdiction
of its Applicable Lending Office so as to eliminate or reduce any such
additional payment which may thereafter accrue if such change, in the
reasonable judgment of such Bank, is not otherwise disadvantageous to such
Bank.

(i)            If
at any time, any Bank has demanded compensation pursuant to Section 8.3 or 8.4
or the obligation of such Bank of make Euro-Currency Loans has been suspended
pursuant to Section 8.2, in any such case, the Borrower shall have the right,
upon five (5) Business Day’s notice to the Administrative Agent to either (x)
cause a Qualified Institution, reasonably acceptable to the Administrative
Agent, to offer to purchase the Commitments of such Bank for an amount equal to
such Bank’s outstanding Loans plus accrued interest, fees and other amounts due
to such Bank, and to become a Bank hereunder, or to obtain the agreement of one
or more existing Banks to offer to purchase the Commitments of such Bank for
such amount, which offer such Bank is hereby required to accept, or (y) to
repay in full all Loans then outstanding of such Bank, together with interest
and all other amounts due thereon.

SECTION
8.5.                Base Rate
Loans Substituted for Affected Euro-Currency Loans. If (i) the obligation
of any Bank to make Euro-Currency Loans has been suspended pursuant to Section
8.2 or (ii) any Bank has demanded compensation under Section 8.3 or 8.4 with
respect to its Euro-Currency Loans and the Borrower shall, by at least five
Business Days’ prior notice to such Bank through the Administrative Agent, have
elected that the provisions of this Section shall apply to such Bank, then,
unless and until such Bank notifies the Borrower that the circumstances giving
rise to such suspension or demand for compensation no longer exist:

(a)           Borrower shall be deemed to have delivered a Notice of
Interest Rate Election with respect to such affected Euro-Currency Loans and thereafter
all Loans which would otherwise be made by such Bank to the Borrower as
Euro-Currency Loans shall be made instead as Base Rate Loans; and

(b)           after
each of its Euro-Currency Loans has been repaid, all payments of principal
which would otherwise be applied to repay such Euro-Currency Loans shall be
applied to repay its Base Rate Loans instead; and

(c)           Borrower
will not be required to make any payment which would otherwise be required by
Section 2.12 with respect to such Euro-Currency Loans converted to Base Rate
Loans pursuant to clause (a) above.

ARTICLE
IX

MISCELLANEOUS

SECTION
9.1.                Notices.
All notices, requests and other communications to any party hereunder shall be
in writing (including bank wire, facsimile transmission followed by telephonic
confirmation or similar writing) and shall be given to such party:  (x) in the case of the Borrower and the
Administrative Agent, at its address or facsimile 

 49
 

number set forth on
Exhibit C attached hereto with duplicate copies thereof, in the case of the
Borrower, to the Borrower, at its address set forth on the signature page
hereof, to its General Counsel and Chief Financial Officer, (y) in the case of
any Bank, at its address or facsimile number set forth in its Administrative
Questionnaire or (z) in the case of any party, such other address or facsimile
number as such party may hereafter specify for the purpose by notice to the
Administrative Agent and the Borrower. 
Each such notice, request or other communication shall be effective (i)
if given by telex or facsimile transmission, when such facsimile is transmitted
to the facsimile number specified in this Section and the appropriate
answerback or facsimile confirmation is received, (ii) if given by certified
registered mail, return receipt requested, with first class postage prepaid,
addressed as aforesaid, upon receipt or refusal to accept delivery, (iii) if
given by a nationally recognized overnight carrier, 24 hours after such
communication is deposited with such carrier with postage prepaid for next day
delivery, or (iv) if given by any other means, when delivered at the address
specified in this Section; provided that notices to the Administrative Agent
under Article II or Article VIII shall not be effective until actually
received.

SECTION
9.2.                No
Waivers. No failure or delay by the Administrative Agent or any Bank in
exercising any right, power or privilege hereunder or under any Note shall
operate as a waiver thereof nor shall any single or partial exercise thereof
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege. The rights and remedies herein provided shall be
cumulative and not exclusive of any rights or remedies provided by law.

SECTION
9.3.                Expenses;
Indemnification.

(a)           The Borrower shall pay within thirty (30) days after
written notice from the Administrative Agent, (i) all reasonable out-of-pocket
costs and expenses of the Administrative Agent (including, without limitation,
reasonable and documented fees and disbursements of special counsel Simpson
Thacher & Bartlett LLP ), in connection with any waiver or consent
hereunder or any amendment hereof or any Default or alleged Default hereunder,
(ii) all reasonable and documented fees and disbursements of special counsel in
connection with the syndication of the Loans, and (iii) if an Event of Default
occurs, all reasonable out-of-pocket expenses incurred by the Administrative
Agent and each Bank, including, without limitation, reasonable and invoiced
fees and disbursements of counsel for the Administrative Agent and each of the
Banks, in connection with the enforcement of the Loan Documents and the
instruments referred to therein and such Event of Default and collection,
bankruptcy, insolvency and other enforcement proceedings resulting therefrom
(provided, however, that the attorneys’ fees and disbursements for which
Borrower is obligated under this subsection (a)(iii) shall be limited to the
reasonable and invoiced non-duplicative fees and disbursements of (A) counsel
for Administrative Agent and (B) counsel for all of the Banks as a group; and
provided, further, that all other costs and expenses for which Borrower is
obligated under this subsection (a)(iii) shall be limited to the reasonable and
invoiced non-duplicative costs and expenses of Administrative Agent). For
purposes of this subsection 9.3(a)(iii), (1) counsel for Administrative Agent
shall mean a single outside law firm representing Administrative Agent and (2)
counsel for all of the Banks as a group shall mean a single outside law firm
representing such Banks as a group (which law firm may or may not be the same
law firm representing the Administrative Agent).

 50
 

(b)           The
Borrower agrees to indemnify the Administrative Agent and each Bank, their
respective affiliates and the respective directors, officers, agents and
employees of the foregoing (each an “Indemnitee”) and hold each
Indemnitee harmless from and against any and all liabilities, losses, damages,
costs and expenses of any kind, including, without limitation, the reasonable
fees and disbursements of counsel, which may be incurred by such Indemnitee in
connection with any investigative, administrative or judicial proceeding that
may at any time (including, without limitation, at any time following the
payment of the Obligations) be asserted against any Indemnitee, as a result of,
or arising out of, or in any way related to or by reason of, (i) any of the
transactions contemplated by the Loan Documents or the execution, delivery or
performance of any Loan Document, (ii) any violation by the Borrower or the
Environmental Affiliates of any applicable Environmental Law, (iii) any
Environmental Claim arising out of the management, use, control, ownership or
operation of property or assets by the Borrower or any of the Environmental
Affiliates, including, without limitation, all on-site and off-site activities
of Borrower or any Environmental Affiliate involving Materials of Environmental
Concern, (iv) the breach of any environmental representation or warranty set
forth herein, but excluding those liabilities, losses, damages, costs and
expenses (a) for which such Indemnitee has been compensated pursuant to the
terms of this Agreement or that are excluded under Section 8.3, (b) incurred
solely by reason of the gross negligence, willful misconduct, bad faith or
fraud of such Indemnitee as finally determined by a court of competent
jurisdiction, (c) arising from any violation of Environmental Law relating to a
Property, which violation is caused by the act or omission of such Indemnitee after
such Indemnitee takes possession of such Property or (d) owing by such
Indemnitee to any third party based upon contractual obligations of such
Indemnitee owing to such third party which are not expressly set forth in the
Loan Documents. In addition, the indemnification set forth in this Section
9.3(b) in favor of any director, officer, agent or employee of Administrative
Agent or any Bank shall be solely in their respective capacities as such
director, officer, agent or employee. The Borrower’s obligations under this
Section shall survive the termination of this Agreement and the payment of the
Obligations. Without limitation of the other provisions of this Section 9.3,
Borrower shall indemnify and hold each of the Administrative Agent and the
Banks free and harmless from and against all loss, costs (including reasonable
and documented attorneys’ fees and expenses), expenses, taxes, and damages
(including consequential damages) that the Administrative Agent and the Banks
may suffer or incur by reason of the investigation, defense and settlement of
claims and in obtaining any prohibited transaction exemption under ERISA or the
Code necessary in the Administrative Agent’s reasonable judgment by reason of
the inaccuracy of the representations and warranties, or a breach of the
provisions, set forth in Section 4.6(b).

SECTION
9.4.                Sharing
of Set-Offs. In addition to any rights now or hereafter granted under
applicable law or otherwise, and not by way of limitation of any such rights,
upon the occurrence and during the continuance of any Event of Default, each
Bank is hereby authorized at any time or from time to time, without
presentment, demand, protest or other notice of any kind to the Borrower or to
any other Person, any such notice being hereby expressly waived, but subject to
the prior consent of the Administrative Agent, which consent shall not be
unreasonably withheld, to set off and to appropriate and apply any and all
deposits (general or special, time or demand, provisional or final) and any other
indebtedness at any time held or owing by such Bank (including, without
limitation, by branches and agencies of such Bank wherever located) to or for
the credit or the account of the Borrower against and on account of the
Obligations of the Borrower then due and payable to such Bank under this 

 51
 

Agreement or under any of
the other Loan Documents, including, without limitation, all interests in
Obligations purchased by such Bank.  Each
Bank agrees that if it shall, by exercising any right of set-off or counterclaim
or otherwise, receive payment of a proportion of the aggregate amount of
principal and interest due with respect to any Loan made by it, which is
greater than the proportion received by any other Bank, the Bank receiving such
proportionately greater payment shall purchase such participations in the Loans
made by the other Banks, and such other adjustments shall be made, as may be
required so that all such payments of principal and interest with respect to
the Loans made by the Banks shall be shared by the Banks pro rata; provided
that nothing in this Section shall impair the right of any Bank to exercise any
right of set-off or counterclaim it may have to any deposits not received in
connection with the Loans and to apply the amount subject to such exercise to
the payment of indebtedness of the Borrower other than its indebtedness under
the Loans.  The Borrower agrees, to the
fullest extent it may effectively do so under applicable law, that any holder
of a participation in a Commitment or a Loan, whether or not acquired pursuant
to the foregoing arrangements, may exercise rights of set-off or counterclaim
and other rights with respect to such participation as fully as if such holder
of a participation were a direct creditor of the Borrower in the amount of such
participation. Notwithstanding anything to the contrary contained herein, any
Bank may, by separate agreement with the Borrower, waive its right to set off
contained herein or granted by law and any such written waiver shall be
effective against such Bank under this Section 9.4.

SECTION
9.5.                Amendments
and Waivers. Any provision of this Agreement or the Notes or other Loan
Documents may be amended or waived if, but only if, such amendment or waiver is
in writing and is signed by the Borrower and the Required Banks (and, if the
rights or duties of the Administrative Agent in its capacity as Administrative
Agent, are affected thereby, by the Administrative Agent); provided that (A) no
amendment or waiver with respect to this Agreement, the Notes or any other Loan
Document shall, unless signed by each Bank directly affected thereby, (i)
reduce the principal of or rate of interest on any Loan or any fees hereunder,
(ii) postpone the date fixed for any payment of principal of or interest on any
Loan or any fees hereunder or for any reduction or termination of any
Commitment, (iii) change the aggregate unpaid principal amount of the Loans, or
the number of Banks, which shall be required for the Banks or any of them to
take any action under this Section or any other provision of this Agreement, or
(iv) modify the provisions of this Section 9.5, and (B) no amendment or waiver
with respect to this Agreement or any other Loan Document shall increase,
extend or decrease the Commitment of any Bank (except for a ratable decrease in
the Commitments of all Banks) or subject any Bank to any additional obligation
unless signed by such Bank.

SECTION
9.6.                Successors
and Assigns.

(a)           The provisions of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns, except that (i) the Borrower may not assign or otherwise transfer any
of its rights under this Agreement or the other Loan Documents without the
prior written consent of all Banks and the Administrative Agent and (ii) a Bank
may not assign or otherwise transfer any of its interest under this Agreement
except as permitted in subsection (b) and (c) of this Section 9.6.

(b)           Prior
to the occurrence of an Event of Default, any Bank may at any time, grant to a
then existing Bank or any Affiliate thereof, one or more banks, finance
companies, 

 52
 

insurance companies or other financial institutions or trusts (a “Participant”)
participating interests in its Commitment or any or all of its Loans. After the
occurrence and during the continuance of an Event of Default, any Bank may at
any time grant to any Person in any amount (also a “Participant”),
participating interests in its Commitment or any or all of its Loans.  Any participation made during the continuation
of an Event of Default shall not be affected by the subsequent cure of such
Event of Default. In the event of any such grant by a Bank of a participating
interest to a Participant, whether or not upon notice to the Borrower and the
Administrative Agent, such Bank shall remain responsible for the performance of
its obligations hereunder, and the Borrower and the Administrative Agent shall
continue to deal solely and directly with such Bank in connection with such
Bank’s rights and obligations under this Agreement.  Any agreement pursuant to which any Bank may
grant such a participating interest shall provide that such Bank shall retain
the sole right and responsibility to enforce the obligations of the Borrower hereunder
including, without limitation, the right to approve any amendment, modification
or waiver of any provision of this Agreement or any other Loan Document;
provided that such participation agreement may provide that such Bank will not
agree to any modification, amendment or waiver of this Agreement described in
clause (i), (ii), (iii) or (iv) of Section 9.5(A) without the consent of the
Participant. The Borrower agrees that each Participant shall, to the extent
provided in its participation agreement, be entitled to the benefits of Article
VIII with respect to its participating interest.

(c)           Any
Bank may at any time assign to a Qualified Institution (in each case, an “Assignee”)
(i) prior to the occurrence of an Event of Default, in minimum amounts of not
less than Five Million Dollars ($5,000,000) and integral multiple of One
Million Dollars ($1,000,000) thereafter (or any lesser amount in the case of
assignments to an existing Bank or any Affiliate thereof or in the case of an
assignment of a Bank’s entire Commitment) and (ii) after the occurrence and
during the continuance of an Event of Default, in any amount, all or a
proportionate part of all, of its rights and obligations under this Agreement,
the Notes and the other Loan Documents, and, in either case, such Assignee
shall assume such rights and obligations, pursuant to a Transfer Supplement in
substantially the form of Exhibit B hereto executed by such Assignee and such
transferor Bank; provided, that if no Event of Default shall have occurred and
be continuing, such assignment shall be subject to the Administrative Agent’s,
and the Borrower’s consent, which consent shall not be unreasonably withheld or
delayed; and provided further that if an Assignee is an affiliate of such
transferor Bank or was a Bank or Affiliate thereof immediately prior to such
assignment, no such consent shall be required from the Borrower or the
Administrative Agent.  Upon execution and
delivery of such instrument and payment by such Assignee to such transferor
Bank of an amount equal to the purchase price agreed between such transferor
Bank and such Assignee, such Assignee shall be a Bank party to this Agreement
and shall have all the rights and obligations of a Bank with a Commitment as
set forth in such instrument of assumption, and no further consent or action by
any party shall be required and the transferor Bank shall be released from its
obligations hereunder to a corresponding extent. Upon the consummation of any
assignment pursuant to this subsection (c), the transferor Bank, the
Administrative Agent and the Borrower shall make appropriate arrangements so
that, if requested or required, a new Note is issued to the Assignee upon the
return to the Borrower of the old Note, if any, marked “cancelled”.  In connection with any such assignment (other
than an assignment by a Bank to an affiliate), the transferor Bank shall pay to
the Administrative Agent an administrative fee for processing such assignment
in the amount of $3,500.  If the Assignee
is not organized under the laws of the United States of America or a 

 53
 

state thereof, it shall deliver to the Borrower and the Administrative
Agent certification as to exemption from deduction or withholding of any United
States federal income taxes in accordance with Section 8.4. Any assignment made
during the continuation of an Event of Default shall not be invalidated by any
subsequent cure of such Event of Default.

(d)           No
Assignee, Participant or other transferee of any Bank’s rights shall be
entitled to receive any greater payment under Section 8.3 or 8.4 than such Bank
would have been entitled to receive with respect to the rights transferred,
unless such transfer is made (i) with the Borrower’s prior written consent or
(ii) by reason of the provisions of Section 8.2, 8.3 or 8.4 requiring such Bank
to designate a different Applicable Lending Office under certain circumstances
or at a time when the circumstances giving rise to such greater payment did not
exist.

(e)           No
Assignee of any rights and obligations under this Agreement shall be permitted
to further assign less than all of such rights and obligations. No Participant
in any rights and obligations under this Agreement shall be permitted to sell
subparticipations of such rights and obligations.

(f)            Anything
in this Agreement to the contrary notwithstanding, so long as no Event of
Default shall have occurred and be continuing, no Bank shall be permitted to
enter into an assignment of, or sell a participation interest in, its rights
and obligations hereunder which would result in such Bank holding a Commitment
without participants of less than Five Million Dollars ($5,000,000) unless as a
result of a cancellation or reduction of the aggregate Commitments; provided,
however, that no Bank shall be prohibited from assigning its entire Commitment
so long as such assignment is otherwise permitted under this Section 9.6.

(g)           The
Administrative Agent shall maintain on behalf of Borrower a register of
principal and interest with respect to each Loan and Commitment.

SECTION
9.7.                Governing
Law; Submission to Jurisdiction; Judgment Currency. (a) THIS AGREEMENT AND
THE OTHER LOAN DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER AND THEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED
BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE PRINCIPLES
THEREOF RELATING TO CONFLICTS OF LAW).

(b)           Any legal action or proceeding with respect to this
Agreement or any other Loan Document and any action for enforcement of any
judgment in respect thereof may be brought in the courts of the State of New York
or of the United States of America for the Southern District of New York, in
each case, which are located in New York County, and, by execution and delivery
of this Agreement, the Borrower hereby accepts for itself and in respect of its
property, generally and unconditionally, the non-exclusive jurisdiction of the
aforesaid courts and appellate courts from any thereof.  The Borrower irrevocably consents, for
itself, to the service of process out of any of the aforementioned courts in
any such action or proceeding by the hand delivery, or mailing of copies
thereof by registered or certified mail, postage prepaid, to the Borrower at
its address set forth below its signature hereto. The Borrower hereby, for
itself, irrevocably waives any objection which it may now or hereafter have to
the laying of 

 54
 

venue of any of the aforesaid actions or
proceedings arising out of or in connection with this Agreement or any other
Loan Document brought in the courts referred to 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.  Nothing herein shall
affect the right of the Administrative Agent to serve process in any other
manner permitted by law or to commence legal proceedings or otherwise proceed
against the Borrower in any other jurisdiction.

(c)           If
for the purpose of obtaining judgment in any court it is necessary to convert a
sum due hereunder in one currency into another currency, the parties hereto
agree, to the fullest extent that they may effectively do so under applicable
law, that the rate of exchange used shall be the spot rate at which in
accordance with normal banking procedures the first currency could be purchased
in New York City with such other currency by the person obtaining such judgment
on the Business Day preceding that on which final judgment is given.

(d)           The
parties agree, to the fullest extent that they may effectively do so under
applicable law, that the obligations of the Borrower to make payments in any
currency of the principal of and interest on the Loans of the Borrower and any
other amounts due from the Borrower hereunder to the Administrative Agent as
provided herein (i) shall not be discharged or satisfied by any tender, or any
recovery pursuant to any judgment (whether or not entered in accordance with
Section 9.8(c)), in any currency other than the relevant currency, except to
the extent that such tender or recovery shall result in the actual receipt by
the Administrative Agent at its relevant office on behalf of the Banks of the
full amount of the relevant currency expressed to be payable in respect of the
principal of and interest on the Loans and all other amounts due hereunder (it
being assumed for purposes of this clause (i) that the Administrative Agent
will convert any amount tendered or recovered into the relevant currency on the
date of such tender or recovery), (ii) shall be enforceable as an alternative
or additional cause of action for the purpose of recovering in the relevant
currency the amount, if any, by which such actual receipt shall fall short of
the full amount of the relevant currency so expressed to be payable and (iii)
shall not be affected by an unrelated judgment being obtained for any other sum
due under this Agreement.

SECTION
9.8.                Counterparts;
Integration; Effectiveness. This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument. This Agreement
constitutes the entire agreement and understanding among the parties hereto and
supersedes any and all prior agreements and understandings, oral or written,
relating to the subject matter hereof. 
This Agreement shall become effective upon receipt by the Administrative
Agent and the Borrower of counterparts hereof signed by each of the parties
hereto (or, in the case of any party as to which an executed counterpart shall
not have been received, receipt by the Administrative Agent in form
satisfactory to it of telegraphic, telex or other written confirmation from
such party of execution of a counterpart hereof by such party).

SECTION
9.9.                WAIVER OF
JURY TRIAL. EACH OF THE BORROWER, THE ADMINISTRATIVE AGENT AND THE BANKS
HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL 

 55
 

PROCEEDING ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

SECTION
9.10.              Survival.
All indemnities set forth herein shall survive the execution and delivery of
this Agreement and the other Loan Documents and the making and repayment of the
Loans hereunder.

SECTION
9.11.              Domicile
of Loans. Subject to the provisions of Article VIII, each Bank may transfer
and carry its Loans at, to or for the account of any domestic or foreign branch
office, subsidiary or affiliate of such Bank.

SECTION
9.12.              Limitation
of Liability. No claim may be made by the Borrower or any other Person
acting by or through Borrower against the Administrative Agent, the Syndication
Agent or any Bank or the affiliates, directors, officers, employees, attorneys
or agent of any of them for any punitive damages in respect of any claim for
breach of contract or any other theory of liability arising out of or related
to the transactions contemplated by this Agreement or by the other Loan
Documents, or any act, omission or event occurring in connection therewith; and
the Borrower hereby waives, releases and agrees not to sue upon any claim for
any such damages, whether or not accrued and whether or not known or suspected
to exist in its favor.

SECTION
9.13.              Recourse
Obligation. This Agreement and the Obligations hereunder are fully recourse
to the Borrower. Notwithstanding the foregoing, no recourse under or upon any
obligation, covenant, or agreement contained in this Agreement shall be had
against any officer, director, shareholder or employee of the Borrower, except
in the event of fraud or misappropriation of funds on the part of such officer,
director, shareholder or employee.

SECTION
9.14.              Confidentiality.
Each of the Administrative Agent, the Syndication Agent, the Joint Lead
Arrangers, the Joint Bookrunners and the Banks understands that some of the
information furnished to it pursuant to this Agreement and the other Loan
Documents may be received by it prior to the time that such information shall
have been made public, and each of the Administrative Agent, the Syndication
Agent, the Joint Lead Arrangers, the Joint Bookrunners and the Banks hereby
agrees that it will keep all Information (as defined below) received by it
confidential except that the Administrative Agent, Syndication Agent, the Joint
Lead Arrangers, the Joint Bookrunners and each Bank shall be permitted to
disclose Information (i) only to such of its officers, directors, employees,
agents, auditors and buyers as need to know such information in connection with
this Agreement or any other Loan Document and who will be advised of the
confidential nature of such Information; (ii) to any other party to this
Agreement; (iii) to a proposed Assignee or Participant in accordance with
Section 9.6 hereof, provided such Person agrees in writing to keep such
Information confidential on terms substantially similar to this Section 9.14;
(iv) to the extent required by applicable law and regulations or by any
subpoena or other legal process; (v) to the extent requested by any bank
regulatory authority or other regulatory authority or self-regulatory
organization; (vi) to the extent such information becomes publicly available
other than as a result of a breach of this Agreement; (vii) to the extent the
Borrower shall have consented to such disclosure or (viii) in connection with
any legal or other enforcement proceeding in connection with any Loan 

 56
 

Document or any of the
transaction contemplated thereby. For the purposes of this Section, “Information”
means all information received from the Borrower or its respective officers,
directors, employees, agents, auditors, lawyers and Affiliates relating to the
Borrower or any of its Subsidiaries or Affiliates (including Investment
Affiliates) or any of their respective businesses other than information that
is generally available to the public.  In
the event of any required disclosure of Information, any Person required to
maintain the confidentiality of such Information as provided in this Section
9.14 agrees to use reasonable efforts to inform the Borrower as promptly as
practicable of the circumstances and the Information required to be disclosed
to the extent not prohibited by applicable law.

SECTION
9.15.              USA
Patriot Act. Each Bank hereby notifies the Borrower that pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the “Patriot Act”), it is required to obtain,
verify and record information that identifies the Borrower, which information
includes the name and address of the Borrower and other information that will
allow such Bank to identify the Borrower in accordance with the Patriot Act.

 57

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

	
  

  	
  iSTAR FINANCIAL INC., a Maryland corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James D. Burns

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James D. Burns

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and 

  Treasurer

  
					

 

 

 

 

	
  

  	
  JPMORGAN CHASE BANK, N.A.,

  
	
   

  	
  as Administrative Agent and a Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles E. Hoagland

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Charles E. Hoagland

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

 

 

	
  

  	
  CITICORP NORTH AMERICA, INC.

  
	
   

  	
  as Syndication Agent and a Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Niraj R. Shah

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Niraj R. Shah

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

 

 

	
  

  	
  WACHOVIA BANK, NATIONAL

  ASSOCIATION, as a Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Matthew Ricketts

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Matthew Ricketts

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

 

 

	
  

  	
  BANK OF AMERICA, N.A., as a Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eyal Namordi

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Eyal Namordi

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
						

 

 

 

 

	
  

  	
  BARCLAYS BANK PLC,

  
	
   

  	
  as a Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nicholas Bell

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Nicholas Bell

  
	
   

  	
   

  	
  Title:

  	
  Director

  
					

 

 

 

	
  

  	
  DEUTSCHE BANK TRUST COMPANY

  AMERICAS, as a Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James Rolison

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James Rolison

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Director

  	
   

  
						

 

 

 

 

	
  

  	
  BEAR STEARNS CORPORATE LENDING, INC.,

  as a Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Victor Bulzacchelli

  	
   

  
	
   

  	
   

  	
   Name:

  	
  Victor Bulzacchelli

  	
   

  
	
   

  	
   

  	
   Title:

  	
  Vice President

  	
   

  
						

 

 

 

 

	
  

  	
  LEHMAN COMMERCIAL PAPER INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Rohit Nair

  	
   

  
	
   

  	
  By: 

  	
  Rohit Nair

  
	
   

  	
  Title:

  	
  Authorized SignatoryExhibit
10.3

FIRST AMENDMENT

FIRST AMENDMENT, dated as of June 26, 2007 (this “First
Amendment”), to the Credit Agreement, dated as of June 28, 2006 (as
amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among iSTAR FINANCIAL INC. (the “Borrower”), the
several banks and other financial institutions from time to time parties to the
Credit Agreement (the “Banks”), JPMORGAN CHASE BANK, N.A., as
Administrative Agent for the Banks (the “Administrative Agent”), BANK OF
AMERICA, N.A., as Syndication Agent, J.P. MORGAN SECURITIES INC. and BANC OF
AMERICA SECURITIES LLC, as Joint Lead Arrangers and Joint Bookrunners, CITICORP
NORTH AMERICA, INC., DEUTSCHE BANK AG, NEW YORK BRANCH, and WACHOVIA BANK,
NATIONAL ASSOCIATION, as Documentation Agents, and BARCLAYS BANK PLC, BEAR
STEARNS CORPORATE LENDING INC., GOLDMAN SACHS CREDIT PARTNERS L.P., LEHMAN
BROTHERS BANK, FSB, MERRILL LYNCH BANK USA, MORGAN STANLEY BANK, and UBS LOAN
FINANCE LLC, as Managing Agents.

W  I
T  N  E  S  S  E  T  H:

WHEREAS, the Borrower, the Banks and the
Administrative Agent are parties to the Credit Agreement; and

WHEREAS, the Borrower has requested that the
Administrative Agent and the Banks agree to amend certain provisions of the
Credit Agreement as set forth herein;

NOW THEREFORE, in consideration of the premises and
the mutual covenants hereinafter set forth, the parties hereto hereby agree as
follows:

1.     Defined Terms.  Unless otherwise defined herein, capitalized
terms that are defined in the Credit Agreement are used herein as therein
defined.

2.     Amendments to Subsection
1.1 (Defined Terms).

(a)           The definition of “Base Euro-Currency
Rate” set forth in Section 1.1 of the Credit Agreement is hereby amended by
adding the following phrase after the words “on the Quotation Date” and before
the proviso thereof: “or on any applicable replacement page.”

(b)           The definition of “Unencumbered
Assets” set forth in Section 1.1 of the Credit Agreement is hereby amended by
deleting the definition in its entirety and substituting in lieu thereof a new
definition to read as follows:

“Unencumbered Asset”
means the sum of (i) Undepreciated Real Estate Assets not securing any portion
of Secured Debt and (ii) all other assets (but excluding intangibles and
accounts receivable) of the Borrower and its Subsidiaries not securing any
portion of Secured Debt on a consolidated basis in accordance with GAAP;
provided that assets (including Undepreciated Real Estate Assets) of any
Subsidiary (other than a 

Guarantor) having Indebtedness that is material to the
value of such assets shall be excluded from Unencumbered Assets.

(c)           The definition of “Loan Documents”
set forth in Section 1.1 of the Credit Agreement is hereby amended by deleting
the definition in its entirety and substituting in lieu thereof a new
definition to read as follows:

“Loan Documents”
means this Agreement, the Guarantee Agreement, the Notes, the Letter(s) of
Credit and the Letter of Credit Documents.

(d)           The definition of “Net Offering
Proceeds” set forth in Section 1.1 of the Credit Agreement is hereby amended by
deleting the definition in its entirety and substituting in lieu thereof a new
definition to read as follows:

“Net Offering Proceeds”
with respect to any Person means all cash or other assets received by such
Person as a result of the issuance or sale of common shares of beneficial
interest, preferred shares of beneficial interest, partnership interests,
preferred partnership units, limited liability company interests, Convertible
Securities or other ownership or equity interests in such Person (the
foregoing, “Capital Stock”) or of Indebtedness, less customary costs,
fees, expenses and discounts of issuance paid or to be paid by such Person
related to such issuance or sale.

(e)           The definition of “Unsecured Debt”
set forth in Section 1.1 of the Credit Agreement is hereby amended by deleting
the definition in its entirety and substituting in lieu thereof a new
definition to read as follows:

“Unsecured Debt”
means the amount of Indebtedness for borrowed money of Borrower (or any
Guarantor) which is not Secured Debt, including, without limitation, the amount
of all then outstanding Loans (it being understood that Indebtedness of any
Subsidiary that is not material to the value of such Subsidiary’s assets shall
be Unsecured Debt).

(f)            The definition of “Value” set forth
in Section 1.1 of the Credit Agreement is hereby amended by deleting the phrase
“or Qualifying Encumbered Asset, as the case may be” thereof.

(g)           The following new definitions are
hereby added to Section 1.1 of the Credit Agreement in appropriate alphabetical
order to read in their entirety as follows:

“Capital Stock” has the meaning set forth in
the definition of Net Offering Proceeds.

“Guarantee
Agreement” means the Guarantee Agreement to be executed and delivered by
the Borrower and each Guarantor, substantially in the form of Exhibit J.

 2
 

“Guarantors” means, initially, iStar EMTN Euro
REIT Inc. and iStar EMTN Sterling REIT Inc., both Subsidiaries being REIT
Subsidiaries, each in respect of Euro Alternate Currency Borrowings and
Sterling Alternate Currency Borrowings, respectively; iStar EMTN Euro TRS
S.a.r.l and iStar EMTN Sterling TRS S.a.r.l, both Subsidiaries being taxable
REIT Subsidiaries, each in respect of Euro Alternate Currency Borrowings and
Sterling Alternate Currency Borrowings, respectively; and other such Guarantors
as may from time to time be added, by a supplement to the Guarantee Agreement
in a form reasonably satisfactory to the Administrative Agent.

“Undepreciated Real Estate Assets” means, as of
any date, the cost (being the original cost to the Borrower or the applicable
subsidiary plus capital improvements) of real estate assets of the Borrower and
its Subsidiaries on such date, before depreciation and amortization of such
real estate assets, determined on a consolidated basis in accordance with GAAP.

(h)           The definitions of “JV”, “Qualifying
Encumbered Asset” and “Unencumbered Asset Value” set forth in Section 1.1 of
the Credit Agreement are hereby amended by deleting those definitions in their
entirety.

3.     Amendment to Section
2.1(b) (Optional Increase in Commitments). Section 2.1(b) of the Credit
Agreement is hereby amended by deleting the phrase “not more than Five Hundred
Million Dollars ($500,000,000) in the aggregate (such that the aggregate
Commitments after such increases shall never exceed Two Billion Seven Hundred
Million Dollars ($2,700,000,000))” in the fifth line thereof and substituting
in lieu thereof the phrase “not more than an amount such that the aggregate
Commitments after such increases shall never exceed Three Billion Dollars
($3,000,000,000)”.

4.     Amendment to Section
2.16 (Use of Proceeds). Section 2.16 of the Credit Agreement is hereby
amended by deleting the subsection in its entirety and substituting in lieu
thereof the following:

SECTION 2.16. Use of
Proceeds. The Borrower shall use the proceeds of the Loans for general
corporate purposes, including, without limitation, the origination, acquisition
and funding of Loan Assets, Credit Tenant Lease Assets and other investments,
acquisitions (including, without limitation, the planned acquisition of Fremont
General Corporation’s commercial real estate lending business and existing
portfolio), and for general working capital needs of the Borrower; provided,
however, that no Swingline Loan shall be used for the purpose of refinancing
another Swingline Loan, in whole or part. Proceeds of Alternate Currency
Borrowings may be used by the Borrower to make contributions to one or more
Guarantors, which will use such proceeds in accordance with this Section 2.16.

5.     Amendment to Section 5.1
(Information). Section 5.1(j) of the Credit Agreement is hereby amended by
deleting the subsection in its entirety and substituting in lieu thereof the
following:

 3
 

“(j)          simultaneously with the delivery of the
information required by Sections 5.1(a) and (b), a statement of all Secured
Debt (in each case, on a Subsidiary by Subsidiary basis), as well as the total
amount of Unsecured Debt and Value of the Unencumbered Assets;”.

6.     Amendment to Section 5.8
(Financial Covenants).  Section 5.8
of the Credit Agreement is hereby amended by:

(a)           (i) deleting in clause (a) thereof the words and figure “One
Billion Eight Hundred Million Dollars ($1,800,000,000)” and substituting in
lieu thereof the words and figure “Two Billion One Hundred and Sixty Seven
Million Three Hundred and Ten Thousand and Four Hundred and Fifty Dollars
($2,167,310,450)”; adding to clause (a) thereof the phrase “from Capital Stock
of the Borrower” after the words “Net Offering Proceeds”; and (iii) deleting
the words “the Closing Date” at the end of clause (a) thereof and substituting
in lieu thereof the words “March 31, 2007”.

(b)           deleting from clause (b) thereof the ratio “3.75:1.00” and
substituting in lieu thereof the ratio “5.00:1.00”;

(c)           deleting clause (d) in its entirety and substituting in
lieu thereof the following:

“(d)         Unencumbered Pool.
The ratio of the Value of the Unencumbered Assets to Unsecured Debt, as of the
last day of each Fiscal Quarter, shall be equal to or greater than 1.20:1.00”.

7.     Amendment to Section
5.12 (Other Indebtedness). Section 5.12 of the Credit Agreement is hereby
amended by deleting the section in its entirety and substituting in lieu
thereof the following:

“SECTION 5.12. Other
Indebtedness. (a)         The Borrower
shall not incur or maintain or permit any Secured Debt which is Recourse Debt
in excess of an amount equal to 20% of Consolidated Tangible Net Worth. Any
Indebtedness maintained or incurred by any Subsidiary of Borrower that is
Recourse Debt of such Subsidiary shall be deemed to be Secured Debt for
purposes of this Section 5.12 and Section 5.8; provided that
Indebtedness of any Guarantor that is not secured shall not be so deemed to be
Secured Debt.

(b)           The Borrower shall not permit any
Guarantor to incur any Indebtedness other than Indebtedness evidenced by the
Guarantee Agreement or Indebtedness owed to the Borrower.”

8.     Amendments to Section
6.1 (Events of Default).

(a)           Section 6.1(c) of the Credit Agreement
is hereby amended by deleting the subsection in its entirety and substituting
in lieu thereof the following:

“(c)         the Borrower or any Guarantor shall
fail to observe or perform any covenant or agreement contained in this
Agreement or any other Loan Document (other 

 4
 

than those covered by clause (a), (b), (e), (f), (g),
(h), (i), (m), (n) or (o) of this Section 6.1) for 30 days after written notice
thereof has been given to the Borrower by the Administrative Agent; or if such
default is of such a nature that it cannot with reasonable effort be completely
remedied within said period of thirty (30) days such additional period of time
as may be reasonably necessary to cure same, provided Borrower commences such
cure within said thirty (30) day period and diligently prosecutes same, until
completion, but in no event shall such extended period exceed ninety (90) days;”

(b)           Section 6.1(d) of the Credit
Agreement is hereby amended by deleting the phrase in the second line thereto “in
this Agreement or” and substituting in lieu thereof the phrase “or any
Guarantor herein or in any other Loan Document or that is contained”;

(c)           Section 6.1(n) of the Credit
Agreement is hereby amended by adding the phrase “or any Guarantor” after the
word “Borrower” thereof and deleting the “or” following the semicolon thereof;

(d)           Section 6.1 of the Credit Agreement
is hereby amended by inserting the following between Sections 6.1(n) and 6.1(o)
thereof:

“(o)         the
guarantee of any Guarantor contained in the Guarantee Agreement shall cease,
for any reason, to be in full force and effect or any Guarantor shall so
assert, other than in connection with a merger of a Guarantor with and into the
Borrower, as permitted by Section 5.9; or”

(e)           Section 6.1(o) of the Credit
Agreement is hereby amended by renumbering the subsection to be Section 6.1(p).

9.     Amendment to Section
9.13 (Recourse Obligation). Section 9.13 of the Credit Agreement is hereby
amended by deleting the section in its entirety and substituting in lieu
thereof the following:

“SECTION 9.13. Recourse
Obligation. This Agreement and the Obligations hereunder are fully recourse
to the Borrower, each Designated Borrower and each Guarantor. Notwithstanding
the foregoing, no recourse under or upon any obligation, covenant, or agreement
contained in this Agreement shall be had against any officer, director,
shareholder or employee of the Borrower, any Designated Borrower or any
Guarantor except in the event of fraud or misappropriation of funds on the part
of such officer, director, shareholder or employee.”

10.   Conditions to Effectiveness
of this First Amendment.  This First
Amendment shall become effective upon the date (the “First Amendment
Effective Date”) when the Administrative Agent shall have received (i)
counterparts of this First Amendment duly executed by each of the Borrower and
the Administrative Agent and consented to by the Required Banks and (ii) an
executed Guarantee Agreement, substantially in the form of Exhibit A hereto,
from the Guarantors, and (iii) all fees required to be paid on or before the
First Amendment Effective Date, and all expenses required to be paid on or
before the First Amendment Effective Date for which invoices have been
presented.

 5
 

11.   Representations and
Warranties.

(a)           No Default. 
No Default or Event of Default shall have occurred and be continuing on
the First Amendment Effective Date after giving effect to the transactions
contemplated herein.

(b)           Representations and Warranties.  Each of the representations and warranties
made by the Borrower and the Guarantors in or pursuant to the Loan Documents
shall be true and correct in all material respects on and as of the First
Amendment Effective Date (after giving effect hereto) as if made on and as of
such date, except to the extent such representations and warranties expressly
relate to a particular date, in which case such representations and warranties
were true and correct in all material respects as of such date.

12.   Payment of Expenses.  The Borrower agrees to pay or reimburse the
Administrative Agent for all of its reasonable out-of-pocket costs and expenses
incurred in connection with this First Amendment, any other documents prepared
in connection herewith and the transactions contemplated hereby, including,
without limitation, the reasonable fees and disbursements of counsel to the Administrative
Agent.

13.   Continuing Effect of the
Loan Documents.  This First Amendment
shall not constitute an amendment or waiver of any provision of the Credit
Agreement or any other Loan Document not expressly referred to herein and shall
not be construed as an amendment, waiver or consent to any further or future
action on the part of the Borrower or any Guarantors that would require an
amendment, waiver or consent of the Banks or Administrative Agent.  Except as expressly amended hereby, the
provisions of the Credit Agreement and the other Loan Documents are and shall
remain in full force and effect.  Any
reference to the “Credit Agreement” in the Loan Documents or any related
documents shall be deemed to be a reference to the Credit Agreement as amended
by this First Amendment.

14.   Counterparts.  This First Amendment may be executed by one
or more of the parties hereto on any number of separate counterparts (including
by facsimile), and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.

15.   Severability.  Any provision of this First Amendment which
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction.

16.   Integration.  This First Amendment and the other Loan Documents
represent the agreement of the Borrower, the Guarantor, the Administrative
Agent and the Banks with respect to the subject matter hereof, and there are no
promises, undertakings, representations or warranties by the Administrative
Agent or any Lender relative to the subject matter hereof not expressly set
forth or referred to herein or in the other Loan Documents.

17.   GOVERNING LAW.  THIS FIRST AMENDMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES UNDER THIS FIRST AMENDMENT SHALL BE 

 6
 

GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

[THE REMAINDER OF THIS
PAGE IS INTENTIONALLY LEFT BLANK]

 7

IN WITNESS WHEREOF, the parties hereto have caused
this First Amendment to be duly executed and delivered by their proper and duly
authorized officers as of the day and year first above written.

	
  

  	
  iSTAR FINANCIAL INC., a Maryland corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James D. Burns

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James D. Burns

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  Treasurer

  
					

 

 

	
  

  	
  JPMORGAN CHASE BANK, N.A.,

  
	
   

  	
  as Administrative Agent and a Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles E. Hoagland

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Charles E. Hoagland

  
	
   

  	
   

  	
  Title:

  	
  Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]