Document:

EXHIBIT 10.1

	
  

 
	
  

 
	
 REVOLVING
 CREDIT AGREEMENT

 
	
  

 
	
 dated
 as of August 3, 2011

 
	
  

 
	
 among

 
	
  

 
	
 AMREIT,
 INC.,

 
	
 a
 Maryland corporation,

 
	
 as
 Borrower,

 
	
  

 
	
 THE
 LENDERS LISTED HEREIN,

 
	
  

 
	
 PNC
 BANK, NATIONAL ASSOCIATION

 
	
 as
 Administrative Agent,

 
	
  

 
	
 PNC
 CAPITAL MARKETS LLC

 
	
 as
 Sole Lead Arranger and Sole Book Runner

 
	
  

 
	
 CAPITAL
 ONE, NATIONAL ASSOCIATION, as Syndication Agent

 
	
  

 
	
 AMEGY
 BANK and US BANK, NATIONAL ASSOCIATION,

 
	
 as
 Co-Documentation Agents

 
	
  

 
	 
 

TABLE OF CONTENTS 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
 1.

 	
 DEFINITIONS

 	
 1

 
	
  

 	
 1.1

 	
 Defined Terms

 	
 1

 
	
  

 	
 1.2

 	
 Other Interpretive Provisions

 	
 21

 
	
  

 	
  

 	
 1.2.1

 	
 Use of Defined Terms

 	
 21

 
	
  

 	
  

 	
 1.2.2

 	
 Certain Common Terms

 	
 22

 
	
  

 	
  

 	
 1.2.3

 	
 Accounting Principles

 	
 23

 
	
  

 	
  

 	
 1.2.4

 	
 Letter of Credit Amounts

 	
 23

 
	
 2.

 	
 LOAN AMOUNTS AND TERMS

 	
 23

 
	
  

 	
 2.1

 	
 Amount and Terms of Commitment

 	
 23

 
	
  

 	
  

 	
 2.1.1

 	
 No Obligation to Issue Letters
 of Credit Under Certain Circumstances

 	
 25

 
	
  

 	
  

 	
 2.1.2

 	
 Letter of Credit Amendments

 	
 26

 
	
  

 	
  

 	
 2.1.3

 	
 Applicability of ISP98

 	
 26

 
	
  

 	
 2.2

 	
 Increase in Maximum Commitment
 Amount

 	
 26

 
	
  

 	
  

 	
 2.2.1

 	
 Request for Increase

 	
 26

 
	
  

 	
  

 	
 2.2.2

 	
 No Lender Consent Required

 	
 26

 
	
  

 	
  

 	
 2.2.3

 	
 Administrative Agent Consent
 and Conditions to Increase

 	
 26

 
	
  

 	
  

 	
 2.2.4

 	
 Rights of Eligible Assignees

 	
 27

 
	
  

 	
  

 	
 2.2.5

 	
 Conditions of Increase in
 Maximum Commitments

 	
 27

 
	
  

 	
 2.3

 	
 Procedure for Obtaining Credit
 (Loans and Letters of Credit)

 	
 27

 
	
  

 	
 2.4

 	
 Loan Accounts; Revolving
 Notes.

 	
 28

 
	
  

 	
  

 	
 2.4.1

 	
 Loan Accounts

 	
 28

 
	
  

 	
  

 	
 2.4.2

 	
 Revolving Notes

 	
 28

 
	
  

 	
 2.5

 	
 Letters of Credit.

 	
 29

 
	
  

 	
  

 	
 2.5.1

 	
 Letter of Credit Drawings and
 Reimbursements; Funding of Participations

 	
 29

 
	
  

 	
  

 	
 2.5.2

 	
 Repayment of Participations

 	
 30

 
	
  

 	
  

 	
 2.5.3

 	
 Obligations Absolute

 	
 30

 
	
  

 	
  

 	
 2.5.4

 	
 Role of Letter of Credit
 Issuer

 	
 31

 
	
  

 	
  

 	
 2.5.5

 	
 Cash Collateral

 	
 32

 
	
  

 	
 2.6

 	
 Conversion and Continuation
 Elections of Loans

 	
 32

 
	
  

 	
  

 	
 2.6.1

 	
 Election to Convert and Renew

 	
 32

 
	
  

 	
  

 	
 2.6.2

 	
 Notice of
 Conversion/Continuation

 	
 33

 
	
  

 	
  

 	
 2.6.3

 	
 Failure to Select a New
 Interest Period

 	
 33

 
	
  

 	
  

 	
 2.6.4

 	
 Number of Interest Periods

 	
 33

 
	
  

 	
 2.7

 	
 Voluntary Termination or
 Reduction of Commitment

 	
 33

 
	
  

 	
 2.8

 	
 Principal Payments

 	
 34

 
	
  

 	
  

 	
 2.8.1

 	
 Optional Prepayments of the
 Loans

 	
 34

 
	
  

 	
  

 	
 2.8.2

 	
 Mandatory Repayments

 	
 34

 
	
  

 	
  

 	
 2.8.3

 	
 Repayment at Maturity

 	
 34

 
	
  

 	
 2.9

 	
 Extension of Original Maturity
 Date

 	
 34

 
	
  

 	
 2.10

 	
 Interest

 	
 35

 
	
  

 	
  

 	
 2.10.1

 	
 Accrual Rate

 	
 35

 

i

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 2.10.2

 	
 Payment

 	
 35

 
	
  

 	
  

 	
 2.10.3

 	
 Default Interest

 	
 35

 
	
  

 	
  

 	
 2.10.4

 	
 Maximum Legal Rate

 	
 36

 
	
  

 	
 2.11

 	
 Fees

 	
 36

 
	
  

 	
  

 	
 2.11.1

 	
 Unused Commitment Fee

 	
 36

 
	
  

 	
  

 	
 2.11.2

 	
 Letter of Credit Fees

 	
 36

 
	
  

 	
  

 	
 2.11.3

 	
 Other Fees

 	
 37

 
	
  

 	
 2.12

 	
 Computation of Fees and
 Interest

 	
 37

 
	
  

 	
 2.13

 	
 Payments by Borrower

 	
 37

 
	
  

 	
  

 	
 2.13.1

 	
 Timing of Payments

 	
 37

 
	
  

 	
  

 	
 2.13.2

 	
 Non-Business Days

 	
 37

 
	
  

 	
  

 	
 2.13.3

 	
 Payment May be Made by
 Administrative Agent

 	
 37

 
	
  

 	
 2.14

 	
 Payments by the Lenders to
 Administrative Agent

 	
 38

 
	
  

 	
  

 	
 2.14.1

 	
 Administrative Agent May Make
 Borrowings Available

 	
 38

 
	
  

 	
  

 	
 2.14.2

 	
 Obligations of Lenders Several

 	
 38

 
	
  

 	
  

 	
 2.14.3

 	
 Failure to Satisfy Conditions
 Precedent

 	
 39

 
	
  

 	
  

 	
 2.14.4

 	
 Funding Source

 	
 39

 
	
  

 	
 2.15

 	
 Sharing of Payments, Etc

 	
 39

 
	
  

 	
 2.16

 	
 Defaulting Lender

 	
 39

 
	
  

 	
  

 	
 2.16.1

 	
 Notice and Cure of Lender
 Default; Election Period; Electing Lenders

 	
 39

 
	
  

 	
  

 	
 2.16.2

 	
 Removal of Rights: Indemnity

 	
 40

 
	
  

 	
  

 	
 2.16.3

 	
 Commitment Adjustments

 	
 41

 
	
  

 	
  

 	
 2.16.4

 	
 No Election

 	
 41

 
	
 3.

 	
 TAXES, YIELD PROTECTION AND
 ILLEGALITY

 	
 41

 
	
  

 	
 3.1

 	
 Taxes

 	
 41

 
	
  

 	
  

 	
 3.1.1

 	
 Payments Free of Taxes

 	
 41

 
	
  

 	
  

 	
 3.1.2

 	
 Payment of Other Taxes by
 Borrower

 	
 41

 
	
  

 	
  

 	
 3.1.3

 	
 Indemnification by Borrower

 	
 41

 
	
  

 	
  

 	
 3.1.4

 	
 Evidence of Payments

 	
 42

 
	
  

 	
  

 	
 3.1.5

 	
 Status of Lenders

 	
 42

 
	
  

 	
  

 	
 3.1.6

 	
 Treatment of Certain Refunds

 	
 42

 
	
  

 	
 3.2

 	
 Illegality

 	
 43

 
	
  

 	
 3.3

 	
 Increased Costs

 	
 43

 
	
  

 	
  

 	
 3.3.1

 	
 Increased Costs Generally

 	
 43

 
	
  

 	
  

 	
 3.3.2

 	
 Capital Requirements

 	
 44

 
	
  

 	
  

 	
 3.3.3

 	
 Delay in Requests

 	
 44

 
	
  

 	
 3.4

 	
 Funding Losses

 	
 44

 
	
  

 	
 3.5

 	
 Inability to Determine Rates

 	
 45

 
	
  

 	
 3.6

 	
 Certificate of Lender

 	
 45

 
	
  

 	
 3.7

 	
 Mitigation Obligations;
 Replacement of Lenders

 	
 46

 
	
  

 	
 3.8

 	
 Survival

 	
 46

 
	
 4.

 	
 UNENCUMBERED ASSET POOL

 	
 46

 
	
  

 	
 4.1

 	
 Additions of Property to the
 Unencumbered Asset Pool

 	
 46

 
	
  

 	
 4.2

 	
 Delivery of Information

 	
 48

 
	
 5.

 	
 CONDITIONS TO DISBURSEMENTS

 	
 49

 

ii

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 5.1

 	
 Conditions to Initial Loans

 	
 49

 
	
  

 	
  

 	
 5.1.1

 	
 Deliveries to Administrative
 Agent

 	
 49

 
	
  

 	
  

 	
 5.1.2

 	
 Payment of Fees

 	
 51

 
	
  

 	
  

 	
 5.1.3

 	
 Payment of Expenses

 	
 51

 
	
  

 	
 5.2

 	
 Conditions of all Borrowings
 and Letters of Credit

 	
 51

 
	
 6.

 	
 COVENANTS OF BORROWER

 	
 51

 
	
  

 	
 6.1

 	
 Specific Affirmative Covenants

 	
 51

 
	
  

 	
  

 	
 6.1.1

 	
 Compliance with Law

 	
 51

 
	
  

 	
  

 	
 6.1.2

 	
 Site Visits

 	
 52

 
	
  

 	
  

 	
 6.1.3

 	
 Insurance

 	
 52

 
	
  

 	
  

 	
 6.1.4

 	
 Preservation of Rights

 	
 53

 
	
  

 	
  

 	
 6.1.5

 	
 Taxes 53

 	
  

 
	
  

 	
  

 	
 6.1.6

 	
 Appraisals

 	
 53

 
	
  

 	
  

 	
 6.1.7

 	
 Certain Unencumbered Asset
 Pool Covenants

 	
 54

 
	
  

 	
 6.2

 	
 Payment of Expenses

 	
 54

 
	
  

 	
 6.3

 	
 Financial and Other
 Information; Certification

 	
 54

 
	
  

 	
 6.4

 	
 Notices

 	
 57

 
	
  

 	
 6.5

 	
 Negative Covenants

 	
 58

 
	
  

 	
  

 	
 6.5.1

 	
 Limitations on Certain
 Activities

 	
 58

 
	
  

 	
  

 	
 6.5.2

 	
 Material Changes

 	
 59

 
	
  

 	
 6.6

 	
 Type of Business; Development
 Covenants

 	
 59

 
	
  

 	
 6.7

 	
 Performance of Acts

 	
 60

 
	
  

 	
 6.8

 	
 Keeping Permitted Affiliates
 Informed

 	
 60

 
	
  

 	
 6.9

 	
 Maximum Consolidated
 Indebtedness Ratio

 	
 60

 
	
  

 	
 6.10

 	
 Debt Ratios

 	
 60

 
	
  

 	
 6.11

 	
 Fixed Charge Coverage Ratio

 	
 60

 
	
  

 	
 6.12

 	
 Minimum Consolidated Net Worth

 	
 60

 
	
  

 	
 6.13

 	
 Maximum Quarterly Dividends

 	
 61

 
	
  

 	
 6.14

 	
 Negative Pledge; Limitations
 on Affiliate Indebtedness.

 	
 61

 
	
  

 	
 6.15

 	
 Change in Control or
 Management of the Unencumbered Asset Pool Property

 	
 61

 
	
  

 	
 6.16

 	
 Books and Records

 	
 62

 
	
  

 	
 6.17

 	
 Audits

 	
 62

 
	
  

 	
 6.18

 	
 Cooperation

 	
 62

 
	
  

 	
 6.19

 	
 ERISA Plans

 	
 62

 
	
  

 	
 6.20

 	
 Use of Proceeds

 	
 62

 
	
  

 	
 6.21

 	
 Use of Proceeds – Ineligible
 Securities

 	
 62

 
	
  

 	
 6.22

 	
 Stock Exchange Listing

 	
 62

 
	
 7.

 	
 REPRESENTATIONS AND WARRANTIES

 	
 62

 
	
  

 	
 7.1

 	
 Organization of Borrower and
 each Permitted Affiliate

 	
 62

 
	
  

 	
 7.2

 	
 Authorization

 	
 62

 
	
  

 	
 7.3

 	
 Enforceable Agreement

 	
 63

 
	
  

 	
 7.4

 	
 Good Standing

 	
 63

 
	
  

 	
 7.5

 	
 No Conflicts

 	
 63

 
	
  

 	
 7.6

 	
 Financial Information

 	
 63

 
	
  

 	
 7.7

 	
 Borrower Not a “Foreign
 Person”

 	
 63

 

iii

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.8

 	
 Lawsuits

 	
 63

 
	
  

 	
 7.9

 	
 Permits, Franchises

 	
 63

 
	
  

 	
 7.10

 	
 Other Obligations

 	
 64

 
	
  

 	
 7.11

 	
 Income Tax Returns

 	
 64

 
	
  

 	
 7.12

 	
 No Event of Default

 	
 64

 
	
  

 	
 7.13

 	
 ERISA Plans

 	
 64

 
	
  

 	
 7.14

 	
 Location of Borrower

 	
 64

 
	
  

 	
 7.15

 	
 No Required Third
 Party/Governmental Approvals

 	
 64

 
	
  

 	
 7.16

 	
 Regulated Entities

 	
 64

 
	
 8.

 	
 DEFAULT AND REMEDIES

 	
 64

 
	
  

 	
 8.1

 	
 Events of Default

 	
 65

 
	
  

 	
 8.2

 	
 Remedies

 	
 67

 
	
  

 	
  

 	
 8.2.1

 	
 Termination of Commitment to
 Lend

 	
 67

 
	
  

 	
  

 	
 8.2.2

 	
 Acceleration of Loans

 	
 67

 
	
  

 	
  

 	
 8.2.3

 	
 Security for Letters of Credit

 	
 67

 
	
  

 	
  

 	
 8.2.4

 	
 Exercise of Rights and
 Remedies

 	
 67

 
	
  

 	
 8.3

 	
 Application of Funds

 	
 67

 
	
 9.

 	
 ADMINISTRATIVE AGENT

 	
 68

 
	
  

 	
 9.1

 	
 Appointment and Authority

 	
 68

 
	
  

 	
 9.2

 	
 Rights as a Lender

 	
 68

 
	
  

 	
 9.3

 	
 Exculpatory Provisions

 	
 69

 
	
  

 	
  

 	
 9.3.1

 	
 Limitation of Administrative
 Agent’s Duties

 	
 69

 
	
  

 	
  

 	
 9.3.2

 	
 Limitation of Administrative
 Agent’s Liability

 	
 69

 
	
  

 	
  

 	
 9.3.3

 	
 Limitation of Administrative
 Agent’s Responsibilities

 	
 69

 
	
  

 	
 9.4

 	
 Reliance by Administrative
 Agent

 	
 69

 
	
  

 	
 9.5

 	
 Delegation of Duties

 	
 70

 
	
  

 	
 9.6

 	
 Resignation of Administrative
 Agent

 	
 70

 
	
  

 	
  

 	
 9.6.1

 	
 Notice of Resignation

 	
 70

 
	
  

 	
  

 	
 9.6.2

 	
 Resignation by PNC Bank

 	
 71

 
	
  

 	
 9.7

 	
 Non-Reliance on Administrative
 Agent and Other Lenders

 	
 71

 
	
  

 	
 9.8

 	
 No Duties, Etc

 	
 71

 
	
  

 	
 9.9

 	
 Administrative Agent May File
 Proofs of Claim

 	
 71

 
	
  

 	
 9.10

 	
 Release of Permitted Affiliate
 from Payment Guaranty

 	
 72

 
	
 10.

 	
 MISCELLANEOUS PROVISIONS

 	
 72

 
	
  

 	
 10.1

 	
 Amendments and Waivers

 	
 72

 
	
  

 	
 10.2

 	
 Notices; Effectiveness;
 Electronic Communication

 	
 74

 
	
  

 	
 10.3

 	
 No Waiver; Cumulative Remedies

 	
 76

 
	
  

 	
 10.4

 	
 Costs and Expenses; Indemnity;
 Waiver of Consequential Damages, Etc

 	
 76

 
	
  

 	
 10.5

 	
 Successors and Assigns

 	
 78

 
	
  

 	
 10.6

 	
 Confidentiality

 	
 81

 
	
  

 	
 10.7

 	
 Right of Setoff

 	
 82

 
	
  

 	
 10.8

 	
 No Third Parties Benefited

 	
 82

 
	
  

 	
 10.9

 	
 Payments Set Aside

 	
 82

 
	
  

 	
 10.10

 	
 Counterparts; Integration;
 Effectiveness

 	
 83

 
	
  

 	
 10.11

 	
 Survival of Representations
 and Warranties

 	
 83

 
	
  

 	
 10.12

 	
 Severability

 	
 83

 

iv

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.13

 	
 Replacement of Lenders

 	
 83

 
	
  

 	
 10.14

 	
 Governing Law; Jurisdiction;
 Etc.

 	
 84

 
	
  

 	
 10.15

 	
 Waiver of Jury Trial

 	
 85

 
	
  

 	
 10.16

 	
 USA PATRIOT Act Notice

 	
 85

 
	
  

 	
 10.17

 	
 Time of the Essence

 	
 85

 
	
  

 	
 10.18

 	
 No Fiduciary Relationship

 	
 86

 

	
  

 	
  

 
	
 SCHEDULE 1.1

 	
 LENDERS’ NAMES AND PRO RATA
 SHARES

 
	
 SCHEDULE 1.2

 	
 ADMINISTRATIVE AGENT’S OFFICE;
 ADMINISTRATIVE AGENT’S PAYMENT OFFICE

 
	
 SCHEDULE 1.3

 	
 PERMITTED AFFILIATES

 
	
 SCHEDULE 1.4

 	
 PROCESSING AND RECORDATION
 FEES

 
	
  

 	
  

 
	
 EXHIBIT A

 	
 UNENCUMBERED ASSET POOL
 PROPERTY

 
	
 EXHIBIT B

 	
 FORM OF NOTICE OF BORROWING OR
 CONVERSION/CONTINUATION

 
	
 EXHIBIT C

 	
 FORM OF LETTER OF CREDIT
 APPLICATION

 
	
 EXHIBIT D

 	
 COMPLIANCE CERTIFICATE

 
	
 EXHIBIT E

 	
 FORM OF ASSIGNMENT AND
 ASSUMPTION

 
	
 EXHIBIT F

 	
 FORM OF PAYMENT GUARANTY (PERMITTED
 AFFILIATE)

 
	
 EXHIBIT G

 	
 FORM OF REVOLVING NOTE

 

v

REVOLVING CREDIT AGREEMENT 

          This
REVOLVING CREDIT AGREEMENT (this “Agreement”), dated as of August 3,
2012, is among AMREIT, INC., a Maryland corporation (“Borrower”), the
several financial institutions from time to time party to this Agreement
(collectively, the “Lenders” and individually, a “Lender”), and
PNC BANK, NATIONAL ASSOCIATION, as administrative agent for the Lenders (in
such capacity, “Administrative Agent”) and as L/C Issuer. 

Background

          WHEREAS, Borrower has requested that Lenders make available, and
Administrative Agent administer, an unsecured revolving credit facility in the
maximum principal amount of $75,000,000; and 

          WHEREAS, Lenders are willing to make available to Borrower, and
Administrative Agent is willing to administer, such facility, subject to and
upon the terms and conditions set forth herein. 

Agreement

          NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth
herein, the parties agree as follows: 

1.       DEFINITIONS.

          1.1        Defined
Terms. In addition to the terms defined elsewhere in this Agreement, the
following terms have the following meanings: 

          “Acquisition
Costs” means, with respect to Borrower and its consolidated subsidiaries,
costs incurred in acquiring operating properties, including but not limited to:
title insurance, survey, environmental testing, finder’s fees, brokerage
commissions, advisory fees, legal fees, accounting fees, valuation costs, and
other professional or consulting fees. 

          “Act”
shall have the meaning set forth in Section 10.16. 

          “Additional
Unencumbered Asset Pool Requirements” means (i) a minimum of six (6)
Unencumbered Asset Pool Properties shall be maintained in the Unencumbered
Asset Pool at all times with an aggregate Unencumbered Asset Pool Value of at
least Fifty Million Dollars ($50,000,000), (ii) the portion of the Unencumbered
Asset Pool Value attributable to any one Unencumbered Asset Pool Property shall
not exceed thirty percent (30%) at any time, and (iii) each Unencumbered Asset
Pool Property shall have minimum occupancy of 80% (or if less than 80%
occupied, then such Unencumbered Asset Property, together with all other Unencumbered
Asset Pool Properties with a then minimum occupancy rate of less than 80%,
shall comprise less than 15% of the Unencumbered Asset Pool Value). 

          “Administrative
Agent” means PNC Bank, National Association, in its capacity as administrative
agent for the Lenders hereunder and under the other Loan Documents, and any
successor administrative agent designated under Section 9.6. 

          “Administrative
Agent’s Office” means Administrative Agent’s address and, as appropriate,
account as set forth on Schedule 1.2, or such other address or account
as Administrative Agent may from time to time notify Borrower and the Lenders
in writing. 

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

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

          “Agent’s
Payment Office” means the address for payments set forth herein for
Administrative Agent, as specified in Schedule 1.2, or such other address as
Administrative Agent may from time to time specify by the delivery of a written
notice to Borrower and the Lenders.  

          “Agreement”
means this Revolving Credit Agreement, as supplemented, modified, amended or
amended and restated from time to time. 

          “Applicable
Margin” means the Applicable LIBOR Margin or the Applicable Reference Rate Margin
determined from the following pricing grid based on the then current
Consolidated Indebtedness Leverage Ratio as provided below: 

	
  

 	
  

 	
  

 	
  

 
	
 TIER

 	
 CONSOLIDATED

 INDEBTEDNESS

 LEVERAGE RATIO

 	
 APPLICABLE LIBOR

 MARGIN (BPS)

 	
 APPLICABLE REFERENCE

 RATE MARGIN (BPS)

 
	
 I

 	
     < 45% 

 	
 205

 	
 105

 
	
 II

 	
     > 45% and < 50%

 	
 225

 	
 125

 
	
 III

 	
     > 50% and < 55%

 	
 250

 	
 150

 
	
 IV

 	
     > 55%

 	
 275

 	
 175

 

          Any
increase or decrease in the Applicable Margin resulting from a change in the
Consolidated Indebtedness Leverage Ratio shall become effective as of the first
Business Day immediately following the date a Compliance Certificate is
delivered to Administrative Agent as required herein; provided, however,
that if a Compliance Certificate is not delivered when due in accordance with
this Agreement, then Tier IV shall apply as of the first Business Day after the
date on which such Compliance Certificate was required to have been delivered,
until such time as an appropriate Compliance Certificate is delivered to
Administrative Agent, at which time the Tier shall be determined by reference
to the Consolidated Indebtedness Leverage Ratio as specified in such Compliance
Certificate. The Applicable Margin in effect from the Closing Date through the
date of delivery of the initial Compliance Certificate delivered pursuant to Section
6.3(g) shall be based upon Tier I. 

          “Applicable
LIBOR Margin” means the Applicable Margin for LIBOR Loans. 

          “Applicable
Reference Rate Margin” means the Applicable Margin for Reference Rate
Loans. 

2

          “Applicable
Unused Fee” means (a) thirty five (35) basis points if the average
Outstanding Amount of all Loans plus the average Outstanding Amount of all L/C
Obligations for any applicable quarter is less than fifty percent (50%) of the
average Commitments of all the Lenders then in effect during such quarter and
(b) twenty five (25) basis points if the average Outstanding Amount of all
Loans plus the average Outstanding Amount of all L/C Obligations for any
applicable quarter is equal to or greater than fifty percent (50%) of the
average Commitments of all the Lenders then in effect during such quarter. 

          “Appraisal”
means a written appraisal prepared by an independent appraiser engaged by
Administrative Agent for the benefit of the Lenders at Borrower’s sole cost and
expense prepared in compliance with all applicable regulatory requirements,
being also subject to Administrative Agent’s customary independent appraisal
requirements, setting forth such appraiser’s determination of the “As-Is”
dollar value of the applicable Unencumbered Asset Pool Property and
satisfactory in form and substance to Administrative Agent. 

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

          “Arranger”
means PNC Capital Markets LLC, in its capacity as sole lead arranger and sole
book runner. 

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

          “Assignment
and Assumption” means an assignment and assumption entered into by a Lender
and an Eligible Assignee (with the consent of any party whose consent is
required by Section 10.5), and accepted by Administrative Agent, in
substantially the form of Exhibit E or any other form approved by
Administrative Agent. 

          “Availability”
means, at any time, an amount equal to the least of the following: (a) 55% of
the Unencumbered Asset Property Value at such time, (b) the Maximum Commitment
Amount at such time, or (c) an amount that results in a Debt Service Coverage
Ratio for the four preceding calendar quarters of less than 1.50:1.0. 

          “Borrower”
has the meaning set forth in the introductory clause hereof. 

          “Borrower’s
Knowledge” means the actual knowledge of the general counsel, chief
financial officer or chief executive officer of Borrower; provided, however,
that, if Administrative Agent, L/C Issuer or any Lender sends a notice with
regards to any matter pursuant to the provisions of Section 10.2 hereof
in accordance with the terms of such Section 10.2, Borrower shall be
deemed to have knowledge of the matters set forth in such notice as of the date
of receipt of such written notice. 

          “Borrowing”
means a borrowing consisting of simultaneous Loans of the same Type and, in the
case of LIBOR Loans, having the same Interest Period, made by each of the
Lenders pursuant to Section 2.1. 

3

          “Business
Day” means any day other than a Saturday, Sunday or other day on which
commercial banks in New York, New York, Pittsburgh Pennsylvania and/or the
state where Administrative Agent’s Office is located, are authorized or
required by Law to close and, if the applicable Business Day relates to any
LIBOR Loan, means any such day on which dealings in dollar deposits are
conducted by and between banks in the London interbank eurodollar market. 

          “Capital
Interest” means, with respect to any Joint Venture, the ratio of (i)
Borrower’s contribution to the capital of such Joint Venture to (ii) the
aggregate amount of all contributions to the capital of such Joint Venture. 

          “Capitalization
Rate” means 7.50%. 

          “Capital
Reserve” means $0.25 per square foot of net leasable area per year for all
real properties owned by Borrower and its consolidated subsidiaries. 

          “Cash
Collateralize” means to pledge and deposit with or deliver to
Administrative Agent, for the benefit of the L/C Issuer and the Lenders, as
collateral for the L/C Obligations, cash or deposit account balances pursuant
to documentation in form and substance reasonably satisfactory to
Administrative Agent and the L/C Issuer (which documents are hereby consented
to by the Lenders). Derivatives of such term have corresponding meanings. 

          “Change
in Control” means the occurrence of any of the following: 

          (a)        Any
Person (including a Person’s Affiliates and associates) or group (as that term
is understood under Section 13(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) and the rules and regulations thereunder)
shall have acquired beneficial ownership (within the meaning of Rule 13d-3
under the Exchange Act) of a percentage (based on voting power, in the event
different classes of stock shall have different voting powers) of the voting
stock of Borrower equal to at least thirty percent (30%); 

          (b)        As
of any date a majority of the Board of Directors or similar body (the “Board”)
of Borrower consists of individuals who were not either (i) directors of
Borrower as of the corresponding date of the previous year, or (ii) selected or
nominated to become directors by the Board of Borrower of which a majority
consisted of individuals described in clause (b)(i) above, or (iii) selected or
nominated to become directors by the Board of Borrower, which majority
consisted of individuals described in clause (b)(i) above and individuals
described in clause (b)(ii), above (excluding, in the case of both clause (ii)
and (iii) above, any individual whose initial nomination for, or assumption of
office as, a member of the Board occurs as a result of an actual or threatened
solicitation of proxies or consents for the election or removal of one or more
directors by any Person or group other than a solicitation for the election of
one or more directors by or on behalf of the Board); or 

          (c)        Borrower
shall suffer a change in its executive management such that (i) H. Kerr Taylor
is no longer Chief Executive Officer, President and Chairman of the Board of
Directors, (ii) Chad Braun is no longer Executive Vice President, Chief
Financial Officer, Chief Operating Officer, Treasurer and Secretary, (iii) Brett
P. Treadwell is no longer Managing Vice President, Finance and Chief Accounting
Officer or (iv) there is a change in 25% or more of Borrower’s executive
management which is in place on the Closing Date, unless such executive
management 

4

is replaced by parties reasonably acceptable to
Administrative Agent within ninety (90) days of such change. 

          “Change
in Law” means the occurrence, after the Closing Date, of any of the
following: (a) the adoption or taking effect of any Law, (b) any change in any
Law or in the administration, interpretation, implementation or application
thereof by any Governmental Authority or (c) the making or issuance of any
request, rule, guideline or directive (whether or not having the force of Law)
by any Governmental Authority; provided that notwithstanding anything herein to
the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act
and all requests, rules, regulations, guidelines, interpretations or directives
thereunder or issued in connection therewith (whether or not having the force
of Law) and (y) all requests, rules, regulations, guidelines, interpretations
or directives promulgated by the Bank for International Settlements, the Basel
Committee on Banking Supervision (or any successor or similar authority) or the
United States or foreign regulatory authorities (whether or not having the
force of Law) , in each case pursuant to Basel III, shall in each case be
deemed to be a Change in Law regardless of the date enacted, adopted, issued, promulgated
or implemented.. 

          “Closing
Date” means the earliest date on which all conditions precedent set forth
in Section 5.1 are satisfied or waived in accordance with Section
10.1(a). 

          “Code”
means the Internal Revenue Code of 1986, as amended from time to time, and any
regulations promulgated thereunder. 

          “Commitment”
means, as to each Lender, its obligation to (a) make Loans to Borrower pursuant
to Section 2, and (b) purchase participations in L/C Obligations, in an
aggregate principal amount at any one time outstanding not to exceed the amount
set forth opposite such Lender’s name on Schedule 1.1 or in the
Assignment and Assumption pursuant to which such Lender becomes a party hereto,
as applicable, as such amount may be adjusted from time to time in accordance
with this Agreement. 

          “Compliance
Certificate” shall have the meaning set forth in Section 4.1(b). 

          “Consolidated
Indebtedness” means, without duplication, (a) all Indebtedness of Borrower
and its consolidated subsidiaries, including subordinated debt, capitalized
leases, purchase obligations (defined as nonrefundable deposits and
non-contingent obligations), L/C Obligations and unfunded obligations of
Borrower or any consolidated subsidiary reported in accordance with GAAP, (b)
Borrower’s actual share of non-recourse liabilities of unconsolidated Joint
Ventures and (c) all liabilities of Affiliates that are recourse to Borrower.
The term “Consolidated Indebtedness” does not include that portion of Borrower’s
liabilities attributable to Non-Borrower Interests. 

          “Consolidated
Indebtedness Leverage Ratio” means, as of the date of determination, the
ratio of Consolidated Indebtedness to Gross Asset Value. 

          “Consolidated
Net Worth” means, as of any date of determination, consolidated total
equity of Borrower and its consolidated subsidiaries, on a consolidated basis,
as reported on Borrower’s most recently delivered financial statements. 

5

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

          “Daily
LIBOR Rate” shall mean, for any day, the rate per annum determined by
Administrative Agent by dividing (x) the Published Rate by (y) a number equal
to 1.00 minus the percentage prescribed by the Federal Reserve for
determining the maximum reserve requirements with respect to any eurocurrency
funding by banks on such day. 

          “Debt
Service” means with respect to the Obligations, as of the date of
determination calculated on an annualized basis, an amount equal to the greater
of (x) the sum of the aggregate actual interest payments, Letter of Credit Fee
and other fees paid or payable in respect of or relating to the Obligations, or
(y) the sum of amortized principal and interest payments calculated on a 25
year amortization schedule at the greater of the following rates: (i) 2.0% over
the yield to maturity of the imputed ten (10) year United States Treasury bill
yield at any time of calculation based upon published quotes for Treasury bills
having ten (10) years to maturity; or (ii) 6.50%. 

          “Debt
Service Coverage Ratio” means, as of the date of determination, the ratio
of (a) the Net Operating Income for the Unencumbered Asset Pool for the four
preceding consecutive calendar quarters divided by (b) the amount of Debt
Service for such four calendar quarter period. 

          “Default”
means any event or circumstance which, with notice or the passage of time or
both, would become an Event of Default. 

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

          “Defaulting
Lender Amount” has the meaning given to it in Section 2.16.1. 

          “Defaulting
Lender Notice” has the meaning given to it in Section 2.16.1.  

          “Default
Rate” means the per annum rate of interest that is 400 basis points in
excess of the rate otherwise applicable. 

          “Designated
Borrower’s Account” has the meaning given to it in Section 9.4. 

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

          “EBITDA”
means, for any fiscal period of Borrower and its consolidated subsidiaries, (a)
the sum for such period of (i) consolidated net income (or loss), (ii)
consolidated interest expense 

6

(including
capitalized interest expense), to the extent included as an expense in the
calculation of consolidated net income (or loss); (iii) consolidated charges
against income for all federal, state and local taxes based on income, (iv)
consolidated depreciation expense, to the extent included as an expense in the
calculation of consolidated net income (or loss), (v) consolidated amortization
expense, to the extent included as an expense in the calculation of
consolidated net income (or loss), (vi) the aggregate amount of other non-cash
charges and expenses, to the extent included as an expense in the calculation
of consolidated net income (or loss), (vii) the aggregate amount of
extraordinary losses included in the determination of consolidated net income
for such period, to the extent included as an expense in the calculation of
consolidated net income (or loss) and (viii) Acquisition Costs, less (b)
the aggregate amount of extraordinary gains included in the determination of
consolidated net income for such period, less (c) gains and losses from the
sale of assets and in each case excluding all Non-Borrower Interests, all as
determined in accordance with GAAP, consistently applied. For purposes of this
definition, EBITDA includes Borrower’s pro rata shares of interest expense,
federal, state and local taxes based on income, depreciation expense and
amortization expense for Joint Ventures, based on its Capital Interests in such
Joint Ventures. 

          “Electing
Lender” has the meaning given to it in Section 2.16.1.

          “Election
Notice” has the meaning given to it in Section 2.16.1.

          “Election
Period” shall have the meaning set forth in Section 2.16.1. 

          “Eligible
Assignee” means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved
Fund; (d) an Eligible Lender, and (e) any other Person (other than a natural
person) approved by (i) Administrative Agent in its reasonable discretion (each
such approval not to be unreasonably withheld or delayed) and (ii) unless an
Event of Default has occurred and is continuing, Borrower (each such approval
by Borrower not to be unreasonably withheld or delayed); provided, however,
that notwithstanding the foregoing, “Eligible Assignee” shall not include
Borrower or any of Borrower’s Affiliates or subsidiaries. Approval by
Administrative Agent or, if required, by Borrower of any Person as an Eligible
Assignee shall not constitute a waiver of any right to approve any other Person
before such other Person can become an Eligible Assignee. 

          “Eligible
Lender” means any Person, other than Borrower or any Affiliates or
subsidiaries of Borrower who (i) is rated BBB- or better by S&P or Baa3 or
better by Moody’s or is a commercial bank, financial institution, institutional
lender with total assets of at least $5,000,000,000, and (ii) is regularly engaged
in the business of commercial real estate lending and maintains one or more
lending offices in the United States. 

          “Environmental
Laws” means all federal, state, and local laws, ordinances, rules,
judgments, orders, decrees, permits, concessions, grants, franchises, licenses,
agreements, governmental restrictions and regulations relating to pollution and
the protection of the environment or the release of any Hazardous Substances
into the environment, including the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, 42 U.S.C. § 9601 et seq.,
the Hazardous Materials Transportation Act, 49 U.S.C. § 1802, et seq., the
Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq., the Toxic
Substance 

7

Control
Act of 1976, as amended, 15 U.S.C. § 2601 et seq., the Clean Water Act, 33
U.S.C. § 466 et seq., as amended, and the Clean Air Act, 42 U.S.C. § 7401 et
seq. 

          “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time
to time. 

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

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

          “Event
of Default” means any of the events or circumstances specified in Section
8.1. 

          “Excluded
Taxes” means, with respect to Administrative Agent, any Lender, the L/C
Issuer or any other recipient of any payment to be made by or on account of any
obligation of Borrower hereunder, (a) taxes imposed on or measured by its
overall net income (however denominated), and franchise taxes imposed on it,
under the laws of any Governmental Authority, (b) any branch profits taxes
imposed by the United States or any similar tax imposed by any Governmental
Authority, and (c) in the case of a Foreign Lender, any withholding tax that is
imposed on amounts payable to such Foreign Lender at the time such Foreign
Lender becomes a party hereto (or designates a new Lending Office) or is
attributable to such Foreign Lender’s failure or inability (other than as a
result of a Change in Law) to comply with Section 3.1.5, except to the
extent that such Foreign Lender (or its assignor, if any) was entitled, at the
time of designation of a new Lending Office (or assignment), to receive additional
amounts from Borrower with respect to such withholding tax pursuant to Section
3.1.5, and (d) (d) any Taxes imposed as a result of the failure of such
recipient to satisfy the applicable requirements of FATCA. 

          “Extended
Maturity Date” means the date that immediately follows the expiration of
the Extension Period, if the Original Maturity Date is duly extended by
Borrower hereunder for the Extension Period. 

          “Extension
Fee” has the meaning given it in Section 2.9(c). 

8

          “Extension
Period” means the consecutive twelve (12) month period immediately
following the Original Maturity Date, as set forth in Section 2.9
hereof. 

          “FATCA”
means Sections 1471 through 1474 of the Code, as of the date of this Agreement
(or any amended versions of Sections 1471 through 1474 of the Code that are
substantively comparable and not materially more onerous to comply with) and
any regulations or official interpretations thereof. 

          “Federal
Funds Open Rate” shall mean, for any day, the rate per annum (based on a
year of 360 days and actual days elapsed) which is the daily federal funds open
rate as quoted by ICAP North America, Inc. (or any successor) as set forth on
the Bloomberg Screen BTMM for that day opposite the caption “OPEN” (or on such
other substitute Bloomberg Screen that displays such rate), or as set forth on
such other recognized electronic source used for the purpose of displaying such
rate as selected by Administrative Agent (an “Alternate Source”) (or if
such rate for such day does not appear on the Bloomberg Screen BTMM (or any
substitute screen) or on any Alternate Source, or if there shall at any time,
for any reason, no longer exist a Bloomberg Screen BTMM (or any substitute
screen) or any Alternate Source, a comparable replacement rate determined by
Administrative Agent at such time (which determination shall be conclusive
absent manifest error); provided however, that if such day is not a Business
Day, the Federal Funds Open Rate for such day shall be the “open” rate on the
immediately preceding Business Day. The rate of interest charged shall be
adjusted as of each Business Day based on changes in the Federal Funds Open
Rate without notice to Borrower. 

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

          “Fee
Letter” has the meaning given to it in Section 2.11.3. 

          “Fitch”
means Fitch, Inc. 

          “Fixed
Charges” means, for any fiscal period of Borrower and its consolidated
subsidiaries, the sum of the following items for such period (including
Borrower’s actual share of each such item for each Joint Venture): (i) interest
expense (whether paid or accrued) on Indebtedness, (ii) capitalized interest
expense, (iii) preferred stock dividends, (iv) scheduled principal payments on
Indebtedness, other than balloon payments due at maturity, and (v) the greater
of (a) the actual recurring maintenance capital expenditures or (b) a reserve
for recurring capital expenditures in an amount equal to the Capital Reserve
for such period. 

9

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

          “Fronting
Fee” has the meaning set forth in Section 2.11.2. 

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

          “Funds
From Operations” means, with respect to Borrower and its consolidated
subsidiaries, net income (computed in accordance with GAAP) calculated in
conformity with the National Association of Real Estate Investment Trusts in
its White Paper on Funds From Operations, as defined, clarified or amended from
time to time, excluding (unless otherwise approved by the Administrative Agent,
such approval not to be unreasonably withheld) (1) gains or losses from sales
of property held for investment, (2) extraordinary and non recurring items,
plus Acquisition Costs, depreciation and amortization and after adjustments for
any unconsolidated subsidiaries of Borrower. Adjustments for such
unconsolidated subsidiaries of Borrower shall be calculated to reflect their
Funds From Operations on the same basis as provided in the foregoing for the
subsidiaries of Borrower. 

          “GAAP”
means generally accepted accounting principles as set forth from time to time
in the opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants, and statements and
pronouncements of the Financial Accounting Standards Board (or agencies with
similar functions of comparable stature and authority within the U.S.
accounting profession), which are applicable to the circumstances as of the
date of determination, consistently applied. 

          “Governmental
Authority” means the government of the United States or any other nation,
or of any political subdivision thereof, whether state or local, and any
agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including
any supra-national bodies such as the European Union or the European Central
Bank) and any group or body charged with setting financial accounting or
regulatory capital rules or standards (including, without limitation, the
Financial Accounting Standards Board, the Bank for International Settlements or
the Basel Committee on Banking Supervision or any successor or similar
authority to any of the foregoing). 

          “Gross
Asset Value” means, as of any determination date, the sum of
(without duplication): 

                    (a)        the
amount of cash, cash equivalents and marketable securities held by Borrower and
its consolidated subsidiaries as of such date of determination; plus 

10

                    (b)        the
Unencumbered Pool Asset Value as of such date of determination; plus 

                    (c)        the
value of income-producing real property (other than the Unencumbered Asset Pool
Properties) owned by Borrower and its consolidated subsidiaries for four fiscal
quarters or more as of such date of determination, based upon, at Borrower’s
option, either (i) the “As-Is” appraised value for such real property or (ii)
the value obtained by dividing the Net Operating Income for such real property
by the Capitalization Rate; plus 

                    (d)        the
book value of income-producing real property (other than the Unencumbered Asset
Pool Properties) owned by Borrower and its consolidated subsidiaries for less
than four fiscal quarters as of such date of determination; plus 

                    (e)        the
value of real property (other than the Unencumbered Asset Pool Properties) owned
by Borrower and its consolidated subsidiaries that is land or under development
and not income producing, based upon, the lower of (i) the acquisition cost of
such real property or (ii) the “As-Is” appraised value of such real property;
plus 

                    (f)        the
book value of all tangible assets (other than real estate) owned by Borrower
and its consolidated subsidiaries. 

          “Guaranty
Obligation” means, as applied to any Person, any direct or indirect
liability of that Person with respect to any Indebtedness, lease, dividend,
letter of credit or other obligation (the “primary obligations”) of another
Person. The amount of any Guaranty Obligation shall be deemed equal to the
stated or determinable amount of the primary obligation in respect of which
such Guaranty Obligation is made or, if not stated or if indeterminable, the
maximum reasonably anticipated liability in respect thereof.  

          “Hazardous
Substance” means any substance, material or waste, including asbestos and
petroleum (including crude oil or any fraction thereof), polychlorinated
biphenyls, radon gas, urea formaldehyde foam insulation, explosive or
radioactive material, or infectious or medical wastes, which is or becomes
designated, classified or regulated as “toxic,” “hazardous,” a “pollutant” or
similar designation under, or which is regulated pursuant to, any Environmental
Law. 

          “Honor
Date” shall have the meaning set forth in Section 2.5.1(a). 

          “Indebtedness”
of any Person means, without duplication, (a) all indebtedness for borrowed
money; (b) all obligations issued, undertaken or assumed as the deferred
purchase price of property or services; (c) all reimbursement obligations with
respect to surety bonds, letters of credit and similar instruments; (d) all
obligations evidenced by notes, bonds, debentures or similar instruments,
including obligations so evidenced incurred in connection with the acquisition
of property, assets or businesses; (e) all indebtedness created or arising
under any conditional sale or other title retention agreement, or incurred as
financing, in either case with respect to property acquired by the Person (even
though the rights and remedies of the seller or lender under such agreement in
the event of default are limited to repossession or sale of such property); (f)
all indebtedness referred to in clauses (a) through (e) above secured by (or
for which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be 

11

secured by) any Lien upon or in property owned by such
Person, even though such Person has not assumed or become liable for the
payment of such Indebtedness; and (g) all Guaranty Obligations in respect of
indebtedness or obligations of others of the kinds referred to in clauses (a)
through (e) above. 

          “Indemnified
Taxes” means Taxes other than Excluded Taxes.

          “Indemnitees”
has the meaning set forth in Section 10.4(b).

          “Information”
has the meaning set forth in Section 10.6. 

          “Insolvency
Proceeding” means (a) any case, action or proceeding before any court or
other Governmental Authority relating to bankruptcy, reorganization,
insolvency, liquidation, receivership, dissolution, winding-up or relief of
debtors, or (b) any general assignment for the benefit of creditors,
composition, marshaling of assets for creditors or other similar arrangement in
respect of its creditors generally or any substantial portion of its creditors;
in each case (a) and (b) undertaken under U.S. federal, state or foreign law,
including the United States Bankruptcy Code (11 U.S.C. §101 et seq.).

          “Interest
Payment Date” means, as applicable, (a) for each Reference Rate Loan and
each LIBOR Loan, on the fifteenth day of each calendar month, (b) the Maturity
Date, and (c) the date of any prepayment of any Loan made hereunder, as to the
amount prepaid. 

          “Interest
Period” means with respect to any LIBOR Loan, the period commencing on the
Business Day the Loan is disbursed or continued or on the conversion date on
which the Loan is converted to a LIBOR Loan and ending on the date that is one,
two, three or six months (or such longer period as Administrative Agent in its
sole discretion may permit Borrower to elect, subject to availability from all
Lenders) thereafter, as selected by Borrower in its Notice of Borrowing or
Conversion/Continuation; provided, however, that until such time that
the syndication of the credit facility created hereunder has been completed,
the Interest Period shall be a one (1) month period, if Administrative Agent so
elects; and provided further that: 

                    (g)        if
any Interest Period pertaining to a LIBOR Loan would otherwise end on a day
that is not a Business Day, that Interest Period shall be extended to the next
succeeding Business Day unless the result of such extension would be to carry
such Interest Period into another calendar month, in which event such Interest
Period shall end on the immediately preceding Business Day; and 

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

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

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

12

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

          “Joint
Venture” means a Person in which Borrower has an ownership interest that is
less than 100%. 

          “Joint
Venture Investments” means the aggregate amount of Borrower’s investments
(valued in accordance with GAAP), advances and loans to Joint Ventures
unconsolidated under GAAP. 

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

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

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

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

          “L/C
Obligations” means, as at any date of determination, the aggregate undrawn
amount of all outstanding Letters of Credit plus the aggregate of all
Unreimbursed Amounts. For purposes of computing the amount available to be
drawn under any Letter of Credit, the amount of such Letter of Credit shall be
determined in accordance with Section 1.2.4. For all purposes of this
Agreement, if on any date of determination a Letter of Credit has expired by
its terms but any amount may still be drawn thereunder by reason of the
operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be
“outstanding” in the amount so remaining available to be drawn. 

          “Lender
Reply Period” has the meaning given to it in Section 10.2(f). 

          “Lenders”
means PNC Bank and the several additional financial institutions from time to
time a party to this Agreement. 

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

13

          “Letter
of Credit” means a standby letter of credit issued by PNC Bank for
Borrower’s account pursuant to Section 2.1. 

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

          “Letter
of Credit Expiration Date” means the day that is five (5) Business Days
prior to the Maturity Date then in effect. 

          “Letter
of Credit Fee” has the meaning set forth in Section 2.11.2. 

          “Letter
of Credit Sublimit” means, at any time, the lesser of (a) $5,000,000 or (b)
the difference between (i) the Availability at such time and (ii) the sum of
the aggregate Outstanding Amount of all Loans and the Outstanding Amount of all
L/C Obligations outstanding at such time.  

          “LIBOR
Base Rate” means, for any Interest Period with respect to any LIBOR Loan,
the rate per annum equal to the rate per annum which appears on the Bloomberg
Page BBAM1 (or on a substitute Bloomberg page that displays rates at which
Dollar deposits are offered by leading banks in the London interbank deposit
market), at approximately 11:00 a.m., London time, two (2) Business Days prior
to the commencement of such Interest Period, for Dollar deposits (for delivery
on the first day of such Interest Period) with a term equivalent to such
Interest Period. If such rate is not available at such time for any reason,
then the “LIBOR Base Rate” for such Interest Period shall be the rate per annum
determined by Administrative Agent to be the rate at which deposits in Dollars for
delivery on the first day of such Interest Period in same day funds in the
approximate amount of the LIBOR Loan being made, continued or converted by
Administrative Agent and with a term equivalent to such Interest Period as
would be offered by a source selected by Administrative Agent which has been
approved by the British Bankers’ Association as an authorized information
vendor for the purpose of displaying rates at which Dollar deposits are offered
by leading banks in the London interbank deposit market at their request at
approximately 11:00 a.m. (London time) two (2) Business Days prior to the
commencement of such Interest Period. 

          “LIBOR
Borrowing” means a Borrowing consisting of LIBOR Loans. 

          “LIBOR
Loan” means a Loan that bears interest at a rate based upon the LIBOR Rate.

          “LIBOR
Rate” means, the interest rate per annum (rounded upward, if necessary, to
a whole multiple of 1/100 of 1%) determined by Administrative Agent by dividing
(i) the LIBOR Base Rate by (ii) a number equal to 1.00 minus the LIBOR Reserve
Percentage. The LIBOR Rate may also be expressed by the following formula: 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 LIBOR Rate  

 	
 =

 	
 LIBOR Base Rate

 	
  

 
	
  

 	
  

 	
  

 	
 1.00 – LIBOR Reserve
 Percentage 

 	
  

 

          “LIBOR
Reserve Percentage” means, for any day during any Interest Period, the
reserve percentage (expressed as a decimal, carried out to five decimal places)
in effect on such day, whether or not applicable to any Lender, under
regulations issued from time to time by the FRB 

14

for determining the maximum reserve requirement (including
any emergency, supplemental or other marginal reserve requirement) with respect
to LIBOR funding (currently referred to as “LIBOR liabilities”). The LIBOR Rate
for each outstanding LIBOR Loan shall be adjusted automatically as of the
effective date of any change in the LIBOR Reserve Percentage. 

          “Lien”
means any mortgage, deed of trust, pledge, hypothecation, assignment, charge or
deposit arrangement, encumbrance, lien (statutory or other) or preference,
priority or other security interest or preferential arrangement of any kind or
nature whatsoever (including those created by, arising under or evidenced by
any conditional sale or other title retention agreement, the lessor’s interest
under a capital lease (determined in accordance with GAAP), any financing lease
having substantially the same economic effect as any of the foregoing, or the
filing of any financing statement under the UCC or any comparable law naming
the owner of the asset to which such lien relates as debtor) and any contingent
or other agreement to provide any of the foregoing, but not including the
interest of a lessor under an operating lease (determined in accordance with
GAAP). 

          “Loan(s)”
has the meaning set forth in Section 2.1(a)(i). 

          “Loan
Documents” means this Agreement, the Revolving Notes, each Payment
Guaranty, each Issuer Document and any other documents executed and/or
delivered to Administrative Agent, on behalf of the Lenders, in connection
therewith, in each case as supplemented, modified, amended or amended and
restated from time to time. 

          “Majority
Lenders” means, as of any date of determination, the Lenders having at
least 51% of the Commitments or, if the commitment of each Lender to make Loans
and the obligation of the L/C Issuer to issue Letters of Credit have been
terminated pursuant to Section 8.2, the Lenders holding in the aggregate
at least 51% of the Outstanding Amount of all Loans plus the Outstanding Amount
of all L/C Obligations (with the aggregate amount of each Lender’s risk
participation and funded participation in L/C Obligations being deemed “held”
by such Lender for purposes of this definition); provided that the
Commitment of, and the portion of the Outstanding Amount held or deemed held by,
any Defaulting Lender shall be excluded for purposes of making a determination
of Majority Lenders; and provided further that if there are fewer
than three Lenders, all Lenders shall be Majority Lenders. 

          “Maturity
Date” means the earlier of the following dates: (a) the Original Maturity
Date or, if Borrower has exercised its extension option pursuant to and in
accordance with Section 2.9 hereof, the Extended Maturity Date, or (b)
any earlier date on which all of the Loans shall become due, whether by
acceleration, mandatory prepayment or otherwise; provided, however, in all
cases, that if such date is not a Business Day, the Maturity Date shall be the
next preceding Business Day. 

          “Maximum
Commitment Amount” means, at any time, an amount equal to $75,000,000,
subject to decrease pursuant to the provisions of Section 2.7 and to
increase pursuant to the provisions of Section 2.2. 

          “Moody’s”
means Moody’s Investors Service, Inc. 

15

          “Mortgage”
means a first priority mortgage, deed of trust, deed to secure debt or similar
security instrument made by a Person owning an interest in real estate granting
a Lien on such interest in real estate as security for payment of Indebtedness.

          “Mortgage
Receivables” means a promissory note secured by a Mortgage of which
Borrower or a subsidiary of Borrower is the holder and retains the rights of
collection of all payments thereunder. 

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

          “Net
Operating Income” means, for any property as of any date of determination,
an amount equal to (i) the aggregate gross revenues from the operations of such
property during the four fiscal quarter period most recently ended (excluding
any accrued revenues attributable to so-called “straight-line rent
accounting”); minus (ii) the sum of (a) all expenses and other proper charges
incurred in connection with the operation of such property during such period,
including real estate taxes but excluding management fees, debt service
charges, income taxes, depreciation, amortization and other non-cash expenses,
(b) income from tenants in bankruptcy whose leases have not been affirmed by
the bankruptcy court, income from tenants operating under defaulted leases
(after expiration of any applicable notice and cure periods with respect to the
default in question), income from tenants not in occupancy and income from
tenants whose leases expire within ninety (90) days and who have not executed
lease renewals, (c) the greater of (Y) the actual recurring maintenance capital
expenditure reserves or (Z) a reserve for recurring capital expenditures in an
amount equal to the Capital Reserve for such period and (d) all management fees
(calculated as the greater of the actual management fees or 3% of gross
revenues for such property).  

          “Nominated
Property” has the meaning given to it in Section 4.1(a). 

          “Non-Borrower
Interests” means (a) the portion of capital contributed to Borrower or any
Joint Venture by a Person other than Borrower; and (b) the portion of income of
Borrower or any Joint Venture that is allocated to a Person other than
Borrower. 

          “Non-Recourse
Indebtedness” means, with respect to any Person, Indebtedness of that
Person with respect to which recourse to such Person for payment is
contractually limited to specific assets encumbered by a Lien securing such
Indebtedness. Notwithstanding the foregoing, Indebtedness of any Person shall
not fail to constitute Non-Recourse Indebtedness by reason of the inclusion in
any document evidencing, governing, securing or otherwise relating to such
Indebtedness to the effect that such Person shall be liable, beyond the assets
securing such Indebtedness, for (a) misapplied moneys, including insurance and
condemnation proceeds and security deposits, (b) liabilities (including
environmental liabilities) of the holders of such Indebtedness and their
affiliates to third parties, (c) breaches of customary representations and
warranties given to the holders of such Indebtedness, (d) commission of waste
with respect to any part of the collateral securing such Indebtedness, (e)
recovery of rents, profits or other income attributable to the collateral
securing such Indebtedness collected following a default, (f) 

16

fraud, gross negligence or willful misconduct, (g) breach
of any covenants regarding compliance with ERISA, and (h) other similar
exceptions to the non-recourse nature of the Indebtedness imposed by an
institutional lender. 

          “Notice
of Borrowing or Conversion/Continuation” means a notice substantially in
the form of Exhibit B given by Borrower to Administrative Agent pursuant to Section
2.3, 2.5 or Section 2.6, as applicable, which shall include,
in the case of a request for a Letter of Credit, a Letter of Credit
Application.  

          “O&M
Plan” means an operations and maintenance plan relating to any asbestos
containing materials. 

          “Obligations”
means all Loans, advances, debts, liabilities, obligations and covenants owing
from Borrower or any Permitted Affiliate to any Lender, Administrative Agent or
any Indemnitee under any Loan Document, whether absolute or contingent, due or
to become due, now existing or hereafter arising, and including interest and
fees that accrue after the commencement by or against Borrower or any Permitted
Affiliate of any proceeding under any Insolvency Proceeding naming such Person
as the debtor in such proceeding, regardless of whether such interest and fees
are allowed claims in such proceeding. 

          “Original
Maturity Date” shall mean the date that is thirty-six (36) months from the
Closing Date. 

          “Other
Taxes” means all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment
made hereunder or under any other Loan Document or from the execution, delivery
or enforcement of, or otherwise with respect to, this Agreement or any other
Loan Document. Other Taxes shall not include any Excluded Taxes. 

          “Outstanding
Amount” means(s) (a) with respect to Loans on any date, the aggregate
outstanding principal amount thereof after giving effect to any borrowings and
prepayments or repayments of Loans occurring on such date; and (b) with respect
to any L/C Obligations on any date, the amount of such L/C Obligations on such
date after giving effect to the issuance, extension or increase of any Letter
of Credit occurring on such date and any other changes in the aggregate amount
of the L/C Obligations as of such date, including as a result of any reimbursements
of outstanding unpaid drawings under any Letters of Credit or any reductions in
the maximum amount available for drawing under Letters of Credit taking effect
on such date. 

          “Participant”
shall have the meaning set forth in Section 10.5(d). 

          “Payment
Guaranty” means a guaranty by a Permitted Affiliate of the Obligations of
Borrower under this Agreement in favor of Administrative Agent, as
administrative agent for the Lenders, substantially in the form of Exhibit F
hereto. 

          “PBGC”
means the Pension Benefit Guaranty Corporation established pursuant to Subtitle
A of Title IV of ERISA or any entity succeeding to any or all of its functions
under ERISA. 

17

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

          “Permitted
Affiliate” means each direct or indirect wholly-owned subsidiary of
Borrower that owns an Unencumbered Asset Pool Property (or holds the interest
in such Unencumbered Asset Pool Property as is described in Section
4.1(a)(1) and is or becomes a party to a Payment Guaranty, including, on
the Closing Date, each entity that is listed on Schedule 1.3 hereto.
Upon removal of the Unencumbered Asset Pool Property owned by such subsidiary
from the Unencumbered Asset Pool pursuant to Section 4.1(b) or Section
4.1(c), and as long as such subsidiary no longer owns (or holds any
interest as is described in Section 4.1(a)(l) in) any Unencumbered Pool
Property included in the calculation of Availability, such subsidiary shall no
longer constitute a Permitted Affiliate hereunder. 

          “Permitted
Liens” has the meaning given to it in Section 4.1(a)(5). 

          “Person”
means an individual, corporation, partnership, joint venture, limited liability
company, joint stock company, business trust, unincorporated association or
Governmental Authority. 

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

          “Platform”
has the meaning given to it in Section 6.3. 

          “PNC
Bank” means PNC Bank, National Association. 

          “Prime
Rate” means the rate of interest in effect for such day as publicly
announced from time to time by PNC Bank as its “prime rate.” The Prime Rate is
determined from time to time by PNC Bank as a means of pricing some loans to
its borrowers. The Prime Rate is not tied to any external rate of interest or
index, and does not necessarily reflect the lowest rate of interest actually
charged by PNC Bank to any particular class or category of customers. If and
when the Prime Rate changes, the rate of interest with respect to any
obligation to which the Prime Rate applies will change automatically without
notice to Borrower, effective on the date of any such change. 

          “Pro
Rata Share” means, as to any Lender at any time, the percentage indicated
for such Lender as its “Pro Rata Share” on Schedule 1.1 (expressed as a
decimal rounded to the ninth decimal place), as such percentage may be adjusted
from time to time as an increase in the Maximum Commitment Amount as provided
in Section 2.14, or to account for any assignments of a Lender’s
interest as provided in Section 10.5. 

          “Published
Rate” means the rate of interest published each Business Day in The Wall
Street Journal “Money Rates” listing under the caption “London Interbank
Offered Rates” for a 

18

one month period (or, if no such rate is published therein
for any reason, then the Published Rate shall be the eurodollar rate for a one
month period as published in another publication determined by Administrative
Agent). 

          “Recourse
Debt” means all Indebtedness that is not Non-Recourse Indebtedness. 

          “Reference
Rate” means for any day a fluctuating rate per annum equal to the highest
of (a) the Federal Funds Open Rate plus one-half of one percent (.5%), (b) the
Prime Rate and (c) the Daily LIBOR Rate plus one percent (1%). 

          “Reference
Rate Borrowing” means a Borrowing consisting of Reference Rate Loans.

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

          “Register”
shall have the meaning set forth in Section 10.5(c). 

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

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

          “Required
Lenders” means, as of any date of determination, the Lenders having at
least 66-2/3% of the Commitments or, if the commitment of each Lender to make
Loans and the obligation of the L/C Issuer to issue Letters of Credit have been
terminated pursuant to Section 8.2, the Lenders holding in the aggregate
at least 66-2/3% of the Outstanding Amount of all Loans plus the Outstanding
Amount of all L/C Obligations (with the aggregate amount of each Lender’s risk
participation and funded participation in L/C Obligations being deemed “held”
by such Lender for purposes of this definition); provided that the
Commitment of, and the portion of the Outstanding Amount held or deemed held
by, any Defaulting Lender shall be excluded for purposes of making a
determination of Required Lenders; and provided further that if
there are fewer than three Lenders, all Lenders shall be Required Lenders. 

          “Requirements
of Law” means, as to any Person, any law (statutory or common), treaty,
rule or regulation, or any determination of an arbitrator or of a Governmental
Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject. 

          “Requirements”
shall have the meaning set forth in Section 6.1.1. 

          “Responsible
Officer” means any officer of Borrower having the authority to execute Loan
Documents, Notices of Borrowing or Conversion/Continuation on behalf of
Borrower, as identified to Administrative Agent in a certificate executed by
the General Counsel, Chief Financial Officer, Chief Executive Officer, Vice
President-Finance or Secretary of Borrower. 

          “Revolving
Notes” means each promissory note of Borrower payable to the order of a
Lender, substantially in the form of Exhibit G hereto, and any amendments,
supplements,  

19

modifications, renewals, replacements, consolidations or extensions
thereof, evidencing the aggregate indebtedness of Borrower to a Lender
resulting from Loans made by such Lender pursuant to this Agreement; “Revolving
Notes” means, at any time, all of the Revolving Notes executed by Borrower
in favor of a Lender outstanding at such time.

          “Secured
Debt” means Indebtedness that is secured by a Lien encumbering real
property owned or leased by the obligor.

          “S&P”
means Standard & Poor’s Rating Services, a division of The McGraw-Hill
Companies, Inc.

          “Taxes”
means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental
Authority and arising from any payment made hereunder or under any other Loan
Document or from the execution, delivery or enforcement of, or otherwise with
respect to, this Agreement or any other Loan Document, including any interest,
additions to tax or penalties applicable thereto.

          “Type”
means, in connection with a Loan, the characterization of such loan as a
Reference Rate Loan or a LIBOR Loan.

          “UCC”
means the Uniform Commercial Code as in effect in any jurisdiction, as the same
may be amended, modified or supplemented from time to time.

          “Unencumbered
Asset Pool” means, at any time, all of the Unencumbered Asset Pool
Properties at such time.

          “Unencumbered
Asset Pool Property” means a real property listed on Exhibit A and
any additional real property that satisfies the conditions set forth in Section
4.1(a), in each case which is an Unencumbered Property and as long as
either Borrower or a Permitted Affiliate holds fee simple title to such real
property or, subject to Section 6.6(b) hereof, such real property is
subject to a financeable ground lease (as determined by Administrative Agent in
its reasonable discretion) in favor of Borrower or any of its consolidated
subsidiaries, in excess of 30 years (provided that no less than 15 years shall be
remaining on such ground lease).

          “Unencumbered
Asset Property Value” means, at any time, the aggregate of the values
determined for each Unencumbered Asset Pool Property as follows:

          (a)          if
at such time Borrower or a Permitted Affiliate has owned such Unencumbered
Asset Property for four or more full consecutive calendar quarters, at
Borrower’s option, (i) an amount equal to the “As-Is” appraised value for such
property, as determined by an Appraisal or (ii) an amount equal to (A) such
property’s Net Operating Income for the most recent four consecutive quarter
period divided by (B) a capitalization rate of 8.25%; or

          (b)          if
at such time Borrower or a Permitted Affiliate has owned such Unencumbered
Asset Pool Property for fewer than four full consecutive calendar quarters, at
Borrower’s option, (i) an amount equal to the “As-Is” appraised value for such
property, as determined by an Appraisal or (ii) an amount equal to (A) such
property’s Net Operating Income for the most recent two consecutive quarter
period annualized divided by (B) a capitalization rate of 8.25%.

20

          “Unencumbered
Property” means any real property that satisfies the following conditions:

                              (a)          such
real property is wholly owned by Borrower or any of its consolidated
subsidiaries in fee simple title, or, subject to Section 6.6(b) hereof,
such real property is subject to a financeable ground lease (as determined by
Administrative Agent in its reasonable discretion) in favor of Borrower or any
of its consolidated subsidiaries, in excess of 30 years (provided that no less
than 15 years shall be remaining on such ground lease) and such real property
is located within the continental United States; 

                              (b)          such
real property is operated as a retail project, as determined by Administrative
Agent in its sole discretion; 

                              (c)          such
real property shall have a minimum occupancy of 80% (or, if less than 80%, is
subject to the limitations set forth in the definition of “Additional
Unencumbered Asset Pool Property Requirements” prior to becoming an
Unencumbered Asset Pool Property);

                              (d)          such
real property is free of all liens, encumbrances and negative pledges, except
for Permitted Liens; 

                              (e)          such
real property is free from material defects in title or survey, from material
structural defects and from material unremediated environmental condition or
contamination (including, but not limited to, with respect to any Hazardous
Substances), in each case, as certified by a Responsible Officer of Borrower;
and

                              (f)          such
real property has a valid permanent certificate of occupancy (or Borrower has
provided Administrative Agent with other evidence satisfying this requirement
which is reasonably satisfactory to Administrative Agent) and construction on
such real property is substantially complete.

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

          “Unreimbursed
Amount” has the meaning set forth in Section 2.5.1(a).

          “Unused
Commitment Fee” has the meaning given to it in Section 2.11.1.

          Terms
capitalized in this Agreement and not defined in this Section 1 have the
meanings given to them elsewhere in this Agreement.

          1.2     Other
Interpretive Provisions.

                    1.2.1     Use
of Defined Terms. Unless otherwise specified herein or therein, all terms
defined in this Agreement shall have the defined meanings when used in any
certificate or other document made or delivered pursuant to this
Agreement. The meaning of defined terms
shall be equally applicable to the singular and plural forms of the defined
terms.

21

                    1.2.2     Certain
Common Terms.

                                 (1)          The
Agreement. The words “hereof,” “herein,” “hereunder” and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement, and section, schedule and
exhibit references are to this Agreement unless otherwise specified.

                                 
(2)          Documents.
The term “documents” includes any and all instruments, documents, agreements,
certificates, indentures, notices and other writings, however evidenced.

                                 
(3)          Meaning of
Certain Terms. The term “including” is not limiting and means “including
without limitation.” The word “will” shall be construed to have the same
meaning and effect as the word “shall.” The words “asset” and “property” shall
be construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

                                 
(4)          Performance.
Whenever any performance obligation hereunder (including a payment obligation)
is stated to be due or required to be satisfied on a day other than a Business
Day, such performance shall be made or satisfied on the next succeeding
Business Day. In the computation of
periods of time from a specified date to a later specified date (other than
with respect to computation of interest owed or accrued under this Agreement),
the word “from” means “from and including” and the words “to” and “until” each
mean “to and including”. If any
provision of this Agreement refers to any action taken or to be taken by any Person,
or which such Person is prohibited from taking, such provision shall be
interpreted to encompass any and all reasonable means, direct or indirect, of
taking or not taking such action.

                                 
(5)          Contracts. Unless otherwise expressly provided in this
Agreement, references to agreements and other contractual instruments shall be
deemed to include all subsequent amendments and other modifications thereto,
but only to the extent such amendments and other modifications are not
prohibited by the terms of any Loan Document.

                                 
(6)          Laws.
References to any statute or regulation are to be construed as including all
statutory and regulatory provisions consolidating, amending or replacing the
statute or regulation.

                                 
(7)          Captions.
The captions and headings of this Agreement are for convenience of reference
only, and shall not affect the construction of this Agreement.

                                 
(8)          Independence
of Provisions. If a conflict exists between the terms of this Agreement and
those of any other Loan Document, this Agreement shall prevail; provided,
however, that the parties acknowledge that this Agreement and the other Loan
Documents may use several different limitations, tests or measurements to
regulate the same or similar matters, and that such limitations, tests and
measurements are cumulative and must each be performed, except as expressly
stated to the contrary in this Agreement, or unless the applicable provisions
are inconsistent or cannot be simultaneously enforced or performed.

22

                                 
(9)          Exhibits.
All of the exhibits attached to this Agreement are incorporated herein by this
reference.

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

                    1.2.3       Accounting
Principles.

                                 
(1)          Accounting
Terms. Unless the context otherwise clearly requires, all accounting terms
not otherwise expressly defined herein shall be construed, and all financial
computations required under this Agreement shall be made, in accordance with
GAAP, consistently applied.

                                 
(2)          Fiscal
Periods. References herein to “fiscal year” and “fiscal quarter” refer to
such fiscal periods of Borrower and its consolidated subsidiaries.

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

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

2.          LOAN
AMOUNTS AND TERMS.

             2.1          Amount
and Terms of Commitment.

                            (a)          Commitment.
Each Lender severally agrees, on the terms and subject to the conditions
hereinafter set forth,

                                           (i)          to
make loans (each such loan, a “Loan”) to Borrower from time to time on
any Business Day during the period from the Closing Date to the Maturity Date
to be used for general corporate purposes of Borrower, including debt
financing, property acquisitions, new construction, renovations, expansions,
tenant improvement costs and equity investments (as and to the extent permitted
herein) and for other purposes permitted by Borrower’s organizational
documents, in an aggregate amount not to exceed such Lender’s Pro Rata Share of
the Availability, and

                                           
(ii)          to fund drawings
on any Letters of Credit that the L/C Issuer issues for Borrower’s account from
time to time, in an aggregate amount not to exceed at any time outstanding such
Lender’s Pro Rata Share of the amount of such drawing. On the date that the

23

L/C Issuer issues a Letter of Credit for Borrower’s account, each
Lender shall be deemed to have unconditionally and irrevocably purchased from
the L/C Issuer a pro rata risk participation in the stated amount of such
Letter of Credit, without recourse or warranty, in an amount equal to such
Lender’s Pro Rata Share of the stated amount of such Letter of Credit.

                            
(b)          Letters of
Credit. The L/C Issuer agrees to issue, amend or extend Letters of Credit
in its standard form for the account of Borrower or any subsidiary, Joint
Venture or Permitted Affiliate on any Business Day during the period from the
Closing Date to the Maturity Date, for any purpose for which Borrower can
obtain Loans under this Agreement, in an aggregate amount not to exceed the
Letter of Credit Sublimit; provided, however, that no Letter of Credit
shall have an expiry date (or shall have an “evergreen” or other extension
provision that results in a final expiry date) that is later than 30 days prior
to the then-applicable Maturity Date.

                            
(c)          Letter of
Credit Applications and Issuer Documents. Each Letter of Credit issued
hereunder (including any supplement, modification, amendment, renewal or
extension thereof) will be issued pursuant to the L/C Issuer’s standard form of
Letter of Credit Application, substantially in the form attached hereto as Exhibit
C (as such form may be modified by PNC Bank from time to time), which will
set forth the agreement between the account party and the L/C Issuer regarding
the Letter of Credit and drawings thereunder. A copy of each such Letter of
Credit Application submitted to the L/C Issuer shall be simultaneously
delivered to the Administrative Agent. Additionally, Borrower shall furnish to
the L/C Issuer and Administrative Agent such other documents and information
pertaining to such requested Letter of Credit issuance or amendment, including
any Issuer Documents, as the L/C Issuer or Administrative Agent may reasonably
require. In the event of any conflict between the terms hereof and the terms of
any Issuer Document, the terms hereof shall control.

                            
(d)          Issuance of
Letter of Credit. Promptly after receipt of any Letter of Credit
Application, the L/C Issuer will confirm with Administrative Agent (by
telephone or in writing) that Administrative Agent has received a copy of such
Letter of Credit Application from Borrower or account party thereof and, if
not, the L/C Issuer will provide Administrative Agent with a copy thereof.
Unless the L/C Issuer has received written notice from Administrative Agent or
Borrower at least one Business Day prior to the requested date of issuance or
amendment of the applicable Letter of Credit, that one or more applicable
conditions contained in Section 5.2 shall not then be satisfied, then,
subject to the terms and conditions hereof, the L/C Issuer shall, on the
requested date, issue a Letter of Credit for the account of Borrower (or the
applicable subsidiary, Joint Venture or Permitted Affiliate) or enter into the
applicable amendment, as the case may be, in each case in accordance with the
L/C Issuer’s usual and customary business practices. Immediately upon the
issuance of each Letter of Credit, each Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the L/C Issuer a risk
participation in such Letter of Credit in an amount equal to the product of
such Lender’s Pro Rata Share times the amount of such Letter of Credit.

                            
(e)          Drawings
Constituting Borrowings. Notwithstanding the provisions of Section 2.6.1,
any amount drawn under a Letter of Credit shall, from and after the date on
which such drawing is made, constitute a Borrowing for all purposes under this
Agreement (including accrual and payment of interest and repayment of
principal), other than disbursement of Loan proceeds under Section 2.6,
and shall be subject to the provisions of Section 2.6.1.

24

Reimbursement of drawings under any Letter of Credit issued for the
account of Borrower’s subsidiary, Joint Venture or Permitted Affiliate shall be
the responsibility of, and shall create an obligation of, Borrower and any
guarantor, including each Permitted Affiliate.

                            
(f)          Limited to
Availability. Notwithstanding any contrary provision of this Agreement, the
Outstanding Amount of all Loans plus the Outstanding Amount of all L/C
Obligations shall not at any time exceed the Availability. Within the limits of
the Availability, and subject to the other terms and conditions hereof,
Borrower may borrow under this Section 2.1 and under Section 2.5
prior to the Maturity Date, repay pursuant to Section 2.8 and reborrow
pursuant to this Section 2.1 and pursuant to Section 2.5 prior to
the Maturity Date.

                            
(g)          Benefits of
L/C Issuer. The L/C Issuer shall act on behalf of the Lenders with respect
to any Letters of Credit issued by it and the documents associated therewith,
and the L/C Issuer shall have all of the benefits and immunities (i) provided
to Administrative Agent in Article 9 with respect to any acts taken
or omissions suffered by the L/C Issuer in connection with Letters of Credit
issued by it or proposed to be issued by it and Issuer Documents pertaining to
such Letters of Credit as fully as if the term “Administrative Agent” as used
in Article 9 included the L/C Issuer with respect to such acts or
omissions, and (ii) as additionally provided herein with respect to the L/C
Issuer.

                            2.1.2     No
Obligation to Issue Letters of Credit Under Certain Circumstances. The L/C
Issuer shall not be under any obligation to issue any Letter of Credit if:

                            (a)        any
order, judgment or decree of any Governmental Authority or arbitrator shall by
its terms purport to enjoin or restrain the L/C Issuer from issuing such Letter
of Credit, or any law applicable to the L/C Issuer or any request or directive
(whether or not having the force of law) from any Governmental Authority with
jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer
refrain from, the issuance of letters of credit generally or such Letter of
Credit in particular or shall impose upon the L/C Issuer with respect to such
Letter of Credit any restriction, reserve or capital requirement (for which the
L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing
Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost or
expense which was not applicable on the Closing Date and which the L/C Issuer
in good faith deems material to it;

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

                            (c)        a
default of any Lender’s obligations to fund under Section 2.6.1(b)
exists or any Lender is at such time a Defaulting Lender hereunder, unless the
L/C Issuer has entered into satisfactory arrangements with Borrower or such Lender
to eliminate the L/C Issuer’s risk with respect to such Lender including,
without limitation, Borrower providing Cash Collateral in the amount of such
Defaulting Lender’s Pro Rata Share of the requested Letter of Credit.

Letters of Credit shall be issued only for drawing in United States
dollars. No Letters of Credit with automatic extension or reinstatement
provisions shall be permitted if it would result in the Letter of Credit having
an expiry date that is later than thirty (30) days prior to the then-applicable
Maturity Date.

25

                            2.1.3     Letter
of Credit Amendments. The L/C Issuer shall not amend any Letter of Credit
if the L/C Issuer would not be permitted at such time to issue such Letter of
Credit in its amended form under the terms hereof.

                            2.1.4     Applicability
of ISP98. Unless otherwise expressly agreed by the L/C Issuer and Borrower
when a Letter of Credit is issued, the rules of the ISP shall apply to each
standby Letter of Credit.

           2.2            Increase
in Maximum Commitment Amount.

                            2.2.1     Request
for Increase. Subject to the provisions of Section 2.7, on the terms
and subject to the conditions set forth in this Section 2.2, Borrower
shall have the right at any time during the first thirty (30) calendar month
period after the Closing Date, by written notice to Administrative Agent, to
request an increase in the Maximum Commitment Amount by (i) first permitting
any Lender to increase its Commitment (and accordingly increase the Maximum
Commitment Amount by such amount), or (ii) thereafter inviting any Eligible
Assignee that has previously been approved by Administrative Agent in writing
to become a Lender under this Agreement and to provide a commitment to lend
hereunder (and accordingly increase the Maximum Commitment Amount by such
amount); provided, however, that in no event shall such actions cause
the Maximum Commitment Amount to increase above $150,000,000.

                            2.2.2     No
Lender Consent Required. Each of the Lenders acknowledges and agrees that,
notwithstanding any contrary provision of Section 10.1, (i) its consent
to any such increase in the Maximum Commitment Amount shall not be required,
and (ii) Eligible Assignees may be added to this Agreement and any Lender may
increase its Commitment without the consent or agreement of the other Lenders
(provided, however, that no Lender’s Commitment may be increased without such
Lender’s consent), so long as Administrative Agent and Borrower have consented
in writing to such Eligible Assignee or the increase in the Commitment of any
of the Lenders, as applicable.

                            2.2.3     Administrative
Agent Consent and Conditions to Increase. Administrative Agent shall not
unreasonably withhold its consent to Borrower’s request for an increase in the
Maximum Commitment Amount under this Section 2.2 provided that Borrower
satisfies all of the following conditions precedent:

                          
(a)          No Default or
Event of Default shall have occurred and remain uncured on the Increase
Effective Date, and Administrative Agent shall have received a certificate to
that effect signed by an officer of Borrower;

                          
(b)          any Eligible
Assignee is acceptable to Administrative Agent in its reasonable discretion;

                         
(c)          Borrower and
each such Lender or Eligible Assignee shall have executed and delivered to
Administrative Agent supplemental signature pages to this Agreement, which
signature pages shall contain an acknowledgement and consent to the increase in
the Maximum Commitment Amount and shall otherwise be in form and substance
reasonably satisfactory to Administrative Agent (each, a “Supplemental
Signature Page”);

26

                          
(d)          Borrower shall
have paid to Administrative Agent, for the account of such Lender or Eligible
Assignee, Administrative Agent and the Arranger, as applicable, a commitment
fee and/or an arrangement fee in an amount reasonably satisfactory to
Administrative Agent and Borrower;

                          
(e)          Administrative
Agent shall have sent written notice of each such request by Borrower to the
Lenders, together with notice of such Eligible Assignee’s Commitment or such
Lender’s increased Commitment, as the case may be, and the effective date (the
“Increase Effective Date”) of such increase in the Maximum Commitment
Amount as set forth on the Supplemental Signature Page; and

                          
(f)          all requirements
of this Section 2.2 shall have been satisfied.

                          
2.2.4     Rights of Eligible Assignees. Upon
the Increase Effective Date, and notwithstanding any contrary provision of this
Agreement (a) each such Eligible Assignee shall become a party to this
Agreement, and thereafter shall have all of the rights and obligations of a
Lender hereunder, (b) each such Eligible Assignee or Lender shall
simultaneously pay to Administrative Agent, for distribution to the Lenders
whose Pro Rata Shares of the combined Commitments of all of the Lenders have
decreased as a result of the new Commitment of such Eligible Assignee or the
increased Commitment of such Lender, an amount equal to the product of such Eligible
Assignee’s Pro Rata Share (or the increase in such Lender’s Pro Rata Share),
expressed as a decimal, multiplied by the aggregate outstanding principal
amount of the Loans on the date of determination, and (c) each such Eligible
Assignee or Lender shall thereafter be obligated to make its Pro Rata Share of
Borrowings to Borrower and shall be obligated to participate in Letter of
Credit risk participations and L/C Advances up to and including the amount of
such Eligible Assignee’s or Lender’s Pro Rata Share of the increased Maximum
Commitment Amount, on the terms and subject to the conditions set forth in this
Agreement.

                          
2.2.5     Conditions of Increase in Maximum
Commitments. Notwithstanding any contrary provision of this Section 2.2,
no increase in the Maximum Commitment Amount will be permitted unless (a) all
then outstanding Loans constitute Reference Rate Loans, or (b) the Interest
Periods for all outstanding LIBOR Loans will expire (and any new Interest
Periods for any such LIBOR Loans will commence) concurrently with the date on
which any increase in the Maximum Commitment Amount becomes effective, or (c)
Borrower pays to Administrative Agent, for the account of Lenders, all costs
arising under Section 3.4 as a result of such increase in the Maximum
Commitment Amount.

             2.3          Procedure
for Obtaining Credit (Loans and Letters of Credit). Each Borrowing shall be
made and each Letter of Credit shall be issued upon the irrevocable written
notice (including notice via facsimile confirmed immediately by a telephone
call) of Borrower in the form of a Notice of Borrowing or Conversion/
Continuation and, with respect to a Letter of Credit request, a Letter of
Credit Application (which notice and, if applicable, Letter of Credit
Application, must be received by Administrative Agent prior to 12:00 p.m., (i)
three (3) Business Days prior to the requested borrowing date, in the case of
LIBOR Loans, or (ii) one (1) Business Day prior to the requested borrowing
date, in the case of Reference Rate Loans, or (iii) five (5) Business Days
prior to the requested issuance date of a Letter of Credit), specifying:

27

                          
(a)          the amount of
the Borrowing or the Letter of Credit, which in the case of a Borrowing shall
be in an aggregate principal amount of not less than (i) $250,000 (or the
remaining Availability, if less) for Reference Rate Borrowings, and (ii)
$500,000 and increments of $100,000 in excess thereof for any LIBOR Borrowings;

                          
(b)          the requested
Borrowing or Letter of Credit issuance date, which shall be a Business Day;

                          
(c)          in the case of a
Borrowing, the Type of Loans comprising the Borrowing;

                         
(d)          in the case of a
LIBOR Borrowing, the duration of the Interest Period applicable to the Loans
comprising such LIBOR Borrowing. If the Notice of Borrowing or Conversion/Continuation
fails to specify the duration of the Interest Period for the Loans comprising a
LIBOR Borrowing, such Interest Period shall be one month.

          Unless the
Required Lenders otherwise agree, during the existence of a Default or Event of
Default, Borrower may not elect to have a Loan made as, or converted into or
continued as, a LIBOR Loan. Notwithstanding the foregoing provisions of this Section
2.3, any amount drawn under a Letter of Credit shall, from and after the
date on which such drawing is made, constitute a Borrowing for all purposes
under this Agreement (including accrual and payment of interest and repayment
of principal) other than disbursement of Loan proceeds under this Section
2.3.

          2.4        Loan
Accounts; Revolving Notes.

                        2.4.1     Loan
Accounts. The Loans made by each Lender shall be evidenced by one or more
loan accounts or records maintained by such Lender and by Administrative Agent
in the ordinary course of business. The loan accounts or records maintained by
Administrative Agent and each Lender shall, absent manifest error, be
conclusive of the amounts of the Loans made by the Lenders to Borrower and the
interest and payments thereon. Any failure so to record or any error in doing
so shall not, however, limit or otherwise affect Borrower’s obligations hereunder
to pay any amount owing with respect to the Loans. In addition to the accounts
and records referred to above, each Lender and Administrative Agent shall
maintain in accordance with its usual practice accounts or records evidencing
the purchases and sales by such Lender of participations in Letters of Credit.
In the event of any conflict between the accounts and records maintained by
Administrative Agent and the accounts and records of any Lender in respect of
such matters, the accounts and records of Administrative Agent shall control in
the absence of manifest error.

                        2.4.2     Revolving
Notes. The Loans made by each Lender shall be evidenced by a Revolving Note
in the form of Exhibit H hereto, payable to the order of such Lender in
an amount equal to such Lender’s Pro Rata Share of the Maximum Commitment
Amount on the Closing Date. Each Lender may endorse on any schedule annexed to
its Revolving Note(s) the date, amount and maturity of each Loan that it makes
(which shall not include undrawn amounts on outstanding Letters of Credit, but
shall include the amounts of any drawings on outstanding Letters of Credit),
and the amount of each payment of principal that Borrower makes with respect
thereto. Borrower irrevocably authorizes each Lender to endorse its Revolving
Note(s), and such Lender’s record shall be conclusive absent manifest error; provided,
however, that any

28

Lender’s failure to make, or its error in making, a notation thereon
with respect to any Loan shall not limit or otherwise affect Borrower’s
obligations to such Lender hereunder or under its Revolving Note(s).

          2.5         Letters
of Credit.

                        2.5.1     Letter
of Credit Drawings and Reimbursements; Funding of Participations.

                        (a)          Upon
receipt from the beneficiary of any Letter of Credit of any notice of a drawing
under such Letter of Credit, the L/C Issuer shall notify Borrower and
Administrative Agent thereof. Not later than 11:00 a.m. on the date of any payment
by the L/C Issuer under a Letter of Credit (each such date, an “Honor Date”),
Borrower shall reimburse the L/C Issuer through Administrative Agent in an
amount equal to the amount of such drawing. If Borrower fails to so reimburse
the L/C Issuer by such time, Administrative Agent shall promptly notify each
Lender of the Honor Date, the amount of the unreimbursed drawing (the “Unreimbursed
Amount”), and the amount of such Lender’s Pro Rata Share thereof. In such
event, Borrower shall be deemed to have requested a Borrowing of Reference Rate
Loans to be disbursed on the Honor Date in an amount equal to the Unreimbursed
Amount, without regard to the minimum and multiples specified in Section 2.3
for the principal amount of Reference Rate Loans, but subject to the amount of
the unutilized portion of the Commitments and the conditions set forth in Section
5.2 (other than the delivery of a Notice of Borrowing or
Conversion/Continuation). Any notice given by the L/C Issuer or Administrative
Agent pursuant to this Section 2.5.1(a) may be given by telephone if
immediately confirmed in writing; provided that the lack of such an
immediate confirmation shall not affect the conclusiveness or binding effect of
such notice.

                      
(b)          Each Lender
shall upon any notice pursuant to Section 2.5.1(a) make funds available
to Administrative Agent for the account of the L/C Issuer, at Administrative
Agent’s Office in an amount equal to its Pro Rata Share of the Unreimbursed
Amount not later than 1:00 p.m. on the Business Day specified in such notice by
Administrative Agent, whereupon, subject to the provisions of Section
2.5.1(c), each Lender that so makes funds available shall be deemed to have
made a Reference Rate Loan to Borrower in such amount. Administrative Agent
shall remit the funds so received to the L/C Issuer.

                        
(c)          With respect to
any Unreimbursed Amount that is not fully refinanced by a Borrowing of
Reference Rate Loans because the conditions set forth in Section 5.2
cannot be satisfied or for any other reason, Borrower shall be deemed to have
incurred from the L/C Issuer, an L/C Borrowing in the amount of the
Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due
and payable on demand (together with interest) and shall bear interest at the
rate set forth in Section 2.11.3. In such event, each Lender’s payment
to Administrative Agent for the account of the L/C Issuer pursuant to Section 2.5.1(b)
shall be deemed payment in respect of its participation in such L/C Borrowing
and shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section 2.5.1.

                        
(d)          Until each
Lender funds its Loan or L/C Advance pursuant to this Section 2.5.1
to reimburse the L/C Issuer for any amount drawn under any Letter of Credit,
interest in respect of such Lender’s Pro Rata Share of such amount shall be
solely for the account of the L/C Issuer.

29

                        
(e)          Each Lender’s
obligation to make Loans or L/C Advances to reimburse the L/C Issuer, for
amounts drawn under Letters of Credit, as contemplated by this Section 2.5.1,
shall be absolute and unconditional and shall not be affected by any
circumstance, including (i) any set-off, counterclaim, recoupment, defense or
other right which such Lender may have against the L/C Issuer, Borrower or any
other Person for any reason whatsoever; (ii) the occurrence or continuance of a
Default, or (iii) any other occurrence, event or condition, whether or not
similar to any of the foregoing; provided, however, that each
Lender’s obligation to make Loans pursuant to this Section 2.5.1 is
subject to the conditions set forth in Section 5.2 (other than delivery
by Borrower of a Notice of Borrowing or Conversion/Continuation). No such
making of an L/C Advance shall relieve or otherwise impair the obligation of
Borrower to reimburse the L/C Issuer for the amount of any payment made by the
L/C Issuer under any Letter of Credit, together with interest as provided
herein.

                        
(f)          If any Lender
fails to make available to Administrative Agent for the account of the L/C
Issuer any amount required to be paid by such Lender pursuant to the foregoing
provisions of this Section 2.5.1 by the time specified in Section
2.5.1(b), the L/C Issuer, shall be entitled to recover from such Lender
(acting through Administrative Agent), on demand, such amount with interest
thereon for the period from the date such payment is required to the date on
which such payment is immediately available to the L/C Issuer at a rate per
annum equal to the Federal Funds Rate from time to time in effect. A
certificate of the L/C Issuer submitted to any Lender (through Administrative Agent)
with respect to any amounts owing under this Section 2.5.1(f) shall be
conclusive absent manifest error.

                          2.5.2     Repayment
of Participations.

                        
(a)         At any time after the L/C
Issuer has made a payment under any Letter of Credit and has received from any
Lender such Lender’s L/C Advance in respect of such payment in accordance with Section
2.5.1, if Administrative Agent receives for the account of the L/C Issuer
any payment in respect of the related Unreimbursed Amount or interest thereon
(whether directly from Borrower or otherwise, including proceeds of Cash
Collateral applied thereto by Administrative Agent), Administrative Agent will
distribute to such Lender its Pro Rata Share thereof (appropriately adjusted,
in the case of interest payments, to reflect the period of time during which
such Lender’s L/C Advance was outstanding) in the same funds as those received
by Administrative Agent.

                        
(b)         If any payment received by
Administrative Agent for the account of the L/C Issuer pursuant to Section
2.5.1(a) is required to be returned under any of the circumstances
described in Section 10.9 (including pursuant to any settlement entered
into by the L/C Issuer, in its discretion), each Lender shall pay to
Administrative Agent for the account of the L/C Issuer its Pro Rata Share
thereof on demand of Administrative Agent, plus interest thereon from the date
of such demand to the date such amount is returned by such Lender, at a rate
per annum equal to the Federal Funds Rate from time to time in effect.

                        
2.5.3        Obligations Absolute.
The obligation of Borrower to reimburse the L/C Issuer, for each drawing under
each Letter of Credit and to repay each L/C Borrowing shall be absolute,
unconditional and irrevocable, and shall be paid strictly in accordance with
the terms of this Agreement under all circumstances, including the following:

30

                        
(a)          any lack of
validity or enforceability of such Letter of Credit, this Agreement, or any
other Loan Document;

                        
(b)          the existence of
any claim, counterclaim, set-off, defense or other right that Borrower or any
subsidiary, Joint Venture or Permitted Affiliate may have at any time against
any beneficiary or any transferee of such Letter of Credit (or any Person for
whom any such beneficiary or any such transferee may be acting), the L/C
Issuer, or any other Person, whether in connection with this Agreement, the
transactions contemplated hereby or by such Letter of Credit or any agreement
or instrument relating thereto, or any unrelated transaction;

                        
(c)          any draft,
demand, certificate or other document presented under such Letter of Credit
proving to be forged, fraudulent, invalid or insufficient in any respect or any
statement therein being untrue or inaccurate in any respect; or any loss or
delay in the transmission or otherwise of any document required in order to make
a drawing under such Letter of Credit;

                        
(d)          any payment by
the L/C Issuer under such Letter of Credit against presentation of a draft or
certificate that does not strictly comply with the terms of such Letter of
Credit; or any payment made by the L/C Issuer under such Letter of Credit to
any Person purporting to be a trustee in bankruptcy, debtor-in-possession,
assignee for the benefit of creditors, liquidator, receiver or other
representative of or successor to any beneficiary or any transferee of such
Letter of Credit, including any arising in connection with any proceeding under
any insolvency or bankruptcy law; or

                        
(e)          any other
circumstance or happening whatsoever, whether or not similar to any of the
foregoing, including any other circumstance that might otherwise constitute a
defense available to, or a discharge of, Borrower or any subsidiary, Joint
Venture or Permitted Affiliate.

          Borrower
shall promptly examine a copy of each Letter of Credit and each amendment
thereto that is delivered to it and, in the event of any claim of noncompliance
with Borrower’s instructions or other irregularity, Borrower will promptly
notify the L/C Issuer. Borrower shall be conclusively deemed to have waived any
such claim against the L/C Issuer and its correspondents unless such notice is
given as aforesaid.

                        
2.5.4       Role of Letter of Credit
Issuer. Each Lender and Borrower agree that, in paying any drawing under a
Letter of Credit, the L/C Issuer shall not have any responsibility to obtain
any document (other than any sight draft, certificates and documents expressly
required by the Letter of Credit) or to ascertain or inquire as to the validity
or accuracy of any such document or the authority of the Person executing or
delivering any such document. None of the L/C Issuer, Administrative Agent or
any of their respective Related Parties nor any of the respective
correspondents, participants or assignees of the L/C Issuer shall be liable to
any Lender for (a) any action taken or omitted in connection herewith at the
request or with the approval of the Lenders or the Requisite Lenders, as
applicable; (b) any action taken or omitted in the absence of gross negligence
or willful misconduct; or (c) the due execution, effectiveness, validity or
enforceability of any document or instrument related to any Letter of Credit or
Issuer Document. Borrower hereby assumes all risks of the acts or omissions of
any beneficiary or transferee with respect to its use of any Letter of Credit; provided,
however, that this assumption

31

is not intended to, and shall not, preclude Borrower’s pursuing such
rights and remedies as it may have against the beneficiary or transferee at law
or under any other agreement. None of the L/C Issuer, Administrative Agent or
any of their respective Related Parties, nor any of the respective
correspondents, participants or assignees of the L/C Issuer, shall be liable or
responsible for any of the matters described in clauses (a) through (e) of Section
2.5.3. In furtherance and not in limitation of the foregoing, the L/C
Issuer may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary, and the L/C Issuer shall not be responsible for
the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign a Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason. Notwithstanding anything to the contrary
in Section 2.5.3 or in this Section 2.5.4, Borrower or any
subsidiary, Joint Venture or Permitted Affiliate for whose benefit a Letter of
Credit was issued may have a claim against the L/C Issuer, and the L/C Issuer
may be liable to Borrower or such subsidiary, Joint Venture or Permitted
Affiliate, to the extent, but only to the extent, of any direct, as opposed to
consequential or exemplary, damages suffered by Borrower or such subsidiary,
Joint Venture or Permitted Affiliate which Borrower or such subsidiary, Joint
Venture or Permitted Affiliate proves were caused by the willful misconduct or
gross negligence of the L/C Issuer or the willful failure of the L/C Issuer to
pay under any Letter of Credit after the presentation to it by the beneficiary
of a sight draft and certificate(s) strictly complying with the terms and
conditions of a Letter of Credit.

                       2.5.5     Cash
Collateral. Upon the request of Administrative Agent, (a) if the L/C Issuer
has honored any full or partial drawing request under any Letter of Credit and
such drawing has resulted in an L/C Borrowing, or (b) if, as of the Letter of
Credit Expiration Date, any Letter of Credit for any reason remains outstanding
and partially or wholly undrawn, Borrower shall immediately Cash Collateralize
the aggregate undrawn amount of all outstanding Letters of Credit plus the
aggregate of all Unreimbursed Amounts (determined as of the date of such L/C
Borrowing or the Letter of Credit Expiration Date, as the case may be). Sections
2.8.2(a) and 8.2 .3 set forth certain additional requirements to
deliver Cash Collateral hereunder. Borrower hereby grants to Administrative
Agent, for the benefit of the L/C Issuer and the Lenders, a security interest
in all such cash, deposit accounts and all balances therein and all proceeds of
the foregoing. Cash Collateral shall be maintained in blocked, non-interest
bearing deposit accounts at Administrative Agent.

          2.6        Conversion
and Continuation Elections of Loans.

                       2.6.1     Election
to Convert and Renew. Borrower may, upon irrevocable written notice to
Administrative Agent in accordance with Section 2.6.2:

                       (a)          elect
to convert, on any Business Day, any Reference Rate Loans (or any part thereof
in an amount not less than $500,000 and increments of $100,000 in excess
thereof) into LIBOR Loans;

                      
(b)          elect to convert
on the last day of any Interest Period any LIBOR Loans maturing on such date
(or any part thereof in an amount not less than $250,000) into Reference Rate
Loans; or

32

                      
(c)          elect to renew
on the last day of any Interest Period (for a new Interest Period that
commences immediately upon the expiration of such existing Interest Period) any
LIBOR Loans maturing on such date (or any part thereof in an amount not less
than $500,000 and increments of $100,000 in excess thereof);

provided, that if the aggregate amount of LIBOR Loans in respect of any
Borrowing shall have been reduced, by payment, prepayment or conversion of part
thereof, to less than $500,000, such LIBOR Loans shall automatically convert
into Reference Rate Loans, and on and after such date the right of Borrower to
continue such Loans as, and convert such Loans into, LIBOR Loans shall
terminate.

                        2.6.2       Notice
of Conversion/Continuation. Borrower shall deliver in writing (including
via facsimile confirmed immediately by a telephone call) a Notice of Borrowing
or Conversion/Continuation (which notice must be received by Administrative
Agent not later than 12:00 p.m., (i) at least three (3) Business Days prior to
the conversion date or continuation date, if the Loans are to be converted into
or continued as LIBOR Loans, or (ii) at least one (1) Business Day prior to the
conversion date, if the Loans are to be converted into Reference Rate Loans)
specifying:

                        
(a)          the proposed
conversion date or continuation date;

                        
(b)          the aggregate
amount of Loans to be converted or continued;

                        
(c)          the nature of
the proposed conversion or continuation; and

                       
(d)          if Borrower
elects to convert a Reference Rate Loan into a LIBOR Loan or elects to continue
a LIBOR Loan, the duration of the Interest Period applicable to such Loan. If
the Notice of Borrowing or Conversion/Continuation fails to specify the
duration of the Interest Period for a LIBOR Loan, such Interest Period shall be
one (1) month.

                        2.6.3        Failure
to Select a New Interest Period. If upon the expiration of any Interest
Period applicable to LIBOR Loans Borrower has failed to select a new Interest
Period to be applicable to LIBOR Loans, Borrower shall be deemed to have
elected a new Interest Period of one (1) month effective as of the expiration
date of such current Interest Period or if any Default or Event of Default
shall then exist, Borrower shall be deemed to have elected to convert LIBOR
Loans into Reference Rate Loans effective as of the expiration date of such
current Interest Period.

                        2.6.4        Number
of Interest Periods. Notwithstanding any other provision of this Agreement,
after giving effect to any conversion or continuation of any Loans, there shall
not be more than six (6) different Interest Periods in effect for the Loans.

          2.7         Voluntary
Termination or Reduction of Commitment. Borrower may, upon not less than
five Business Days’ prior written notice to Administrative Agent, terminate the
Lenders’ Commitment to make Loans to Borrower or issue Letters of Credit for
Borrower’s account, or permanently reduce the Maximum Commitment Amount by a
minimum amount of $5,000,000, unless, after giving effect thereto and to any
prepayments of Loans made on the effective date thereof, the sum of the
aggregate principal amount of (i) the Outstanding Amount

33

of the Loans and (ii) the Outstanding Amount of L/C Obligations would
exceed the Availability. Once reduced in accordance with this Section 2.7,
the Maximum Commitment Amount may not be increased. Any reduction of the
Commitment amounts shall be applied to each Lender according to its Pro Rata
Share. No commitment or extension fees paid prior to the effective date of any
reduction of the Maximum Commitment Amount or termination of the Lenders’
commitment(s) to make Loans to Borrower or issue Letters of Credit for
Borrower’s account shall be refunded, and all accrued Facility Fee for the
period up to but not including the effective date of any reduction or
termination of the Commitments shall be payable on the effective date of such
reduction or termination.

          2.8          Principal
Payments.

                          2.8.1     Optional
Prepayments of the Loans. Subject to the provisions of Section 3.4,
Borrower may, at any time or from time to time, upon at least one Business
Day’s prior written notice to Administrative Agent with respect to any
Reference Rate Loan, or upon at least three Business Day’s prior written notice
to Administrative Agent with respect to any LIBOR Loan, ratably prepay Loans in
full or in part in an amount not less than $250,000 for Reference Rate Loans
(or, if less, the aggregate outstanding principal amount of all Reference Rate
Loans) or $500,000 for LIBOR Loans. Such notice of prepayment shall specify the
date and amount of such prepayment and the Type(s) of Loans to be prepaid.
Administrative Agent will promptly notify each Lender of its receipt of any
such notice and such Lender’s Pro Rata Share of such prepayment. If Borrower
gives a prepayment notice to Administrative Agent, such notice is irrevocable
and the prepayment amount specified in such notice shall be due and payable on
the date specified therein, together with accrued interest to such date on the
amount prepaid in the case of a prepayment of LIBOR Loans, and all amounts required
to be paid pursuant to Section 3.4.

                          2.8.2     Mandatory
Repayments.

                          (a)         Availability
Limit. Should the Outstanding Amount of Loans plus the Outstanding Amount
of L/C Obligations at any time exceed the Availability, Borrower shall
immediately repay such excess to Administrative Agent, for the account of the
Lenders and/or deliver to Administrative Agent Cash Collateral pursuant to Section
2.5.5 hereof, in the amount of the excess of the outstanding but undrawn
Letters of Credit over the Availability.

                          (b)         Application
of Repayments. Any repayments pursuant to this Section 2.8.2
shall be (i) subject to Section 3.4, and (ii) applied first, to any
Reference Rate Loans then outstanding and second, to the LIBOR Loans (in order
of the shortest Interest Periods remaining).

                          2.8.3      Repayment
at Maturity. Borrower shall repay the principal amount of all outstanding
Loans on the Maturity Date or, if earlier, upon termination of the Lenders’
Commitments pursuant to Section 2.7.

          2.9           Extension
of Original Maturity Date. Upon Borrower’s written request, delivered to
Administrative Agent at least ninety (90) days and not more than one hundred
twenty (120)

34

days prior to the Original Maturity Date, Borrower shall have the right
to extend the Original Maturity Date to the Extended Maturity Date, provided
that:

                        (a)          No
Default or Event of Default shall have occurred and remain uncured on the
Original Maturity Date, and Administrative Agent shall have received a
certificate to that effect signed by a Responsible Officer of Borrower;

                        (b)          The
representations and warranties set forth in this Agreement and the other Loan
Documents shall be correct as of the Original Maturity Date as though made on
and as of that date, and Administrative Agent shall have received a certificate
to that effect signed by a Responsible Officer of Borrower;

                        (c)          Borrower
shall have paid to Administrative Agent, for the account of the Lenders, an
extension fee (the “Extension Fee”) equal to fifteen (15) basis points
multiplied by the Maximum Commitment Amount on the Original Maturity Date. The
Extension Fee shall be determined as of the date Borrower provides the
extension notice for the Extension Period and shall be paid by Borrower on the
first day of the Extension Period; and

                        (d)          Borrower
shall have executed, acknowledged and delivered to Administrative Agent such
documents as Administrative Agent reasonably determines to be necessary to
evidence the extension of the Original Maturity Date.

            2.10     Interest.

	
  

 	
  

 
	
  

 	
               2.10.1
 Accrual Rate. Subject to the provisions of Section 2.10.3, each
 Loan shall bear interest on the outstanding principal amount thereof from the
 date when made (which, in the case of a drawing on a Letter of Credit, is the
 date of such drawing) until it becomes due at a rate per annum equal to (A)
 with respect to a LIBOR Loan, the LIBOR Rate plus the Applicable LIBOR
 Margin, and (B) with respect to a Reference Rate Loan, the Reference Rate plus
 the Applicable Reference Rate Margin.

 

                        2.10.2
Payment. Interest on each Loan shall be payable in arrears on each
Interest Payment Date. Interest shall also be payable on the date of any
repayment of Loans pursuant to Section 2.8 for the portion of the Loans
so repaid and upon payment (including prepayment) of the Loans in full. During
the existence of any Event of Default, interest shall also be payable on
demand.

                        2.10.3
Default Interest. Commencing upon the occurrence of any Event of
Default, and continuing thereafter while such Event of Default remains uncured,
or after maturity or acceleration (unless and until such acceleration is
rescinded), Borrower shall pay interest (after as well as before entry of
judgment thereon to the extent permitted by law) on the principal amount of all
Obligations due and unpaid, at a rate per annum determined by adding 400 basis
points to the Applicable Margin then in effect for such Loans and, in the case
of Obligations not subject to an Applicable Margin, at a rate per annum equal
to the Reference Rate plus 400 basis points; provided, however, that on
and after the expiration of any Interest Period applicable to any LIBOR Loan
outstanding on the date of occurrence of such Event of Default, the principal
amount of such Loan shall, during the continuation of such Event of Default,
bear interest at a

35

rate per annum equal to the Reference Rate plus 400 basis points in
excess of the Applicable Reference Rate Margin then in effect.

                        2.10.4
Maximum Legal Rate. Notwithstanding anything to the contrary contained
in any Loan Document, the interest paid or agreed to be paid under the Loan
Documents shall not exceed the maximum rate of non-usurious interest permitted
by applicable Law (the “Maximum Rate”). If Administrative Agent or any
Lender shall receive interest in an amount that exceeds the Maximum Rate, the
excess interest shall be applied to the principal of the Loans or, if it
exceeds such unpaid principal, refunded to Borrower. In determining whether the
interest contracted for, charged, or received by Administrative Agent or a
Lender exceeds the Maximum Rate, such Person may, to the extent permitted by
applicable Law, (a) characterize any payment that is not principal as an
expense, fee, or premium rather than interest, (b) exclude voluntary
prepayments and the effects thereof, and (c) amortize, prorate, allocate, and
spread in equal or unequal parts the total amount of interest throughout the
contemplated term of the Obligations hereunder.

          2.11       Fees.

                        2.11.1     Unused
Commitment Fee. Borrower agrees to pay to Administrative Agent for
distribution to each Lender an unused commitment fee (the “Unused Commitment
Fee”) for the period from the Closing Date until the Maturity Date (or such
earlier date as the Commitments of all the Lenders shall have been terminated)
equal to the average daily amount of the Commitments of all the Lenders then in
effect which was unused (through the extension of Loans) during the immediately
preceding calendar quarter multiplied by the Applicable Unused Fee. The Unused
Commitment Fee shall be due and payable quarterly in arrears, within ten days
following the last day of each March, June, September, and December, commencing
with the first such date to occur after the Closing Date and continuing through
the Maturity Date or upon such earlier date as all the Commitments shall have
been terminated. Any Unused Commitment Fee for less than a full quarter shall
be pro-rated for any period according to the number of days this Agreement was
in effect during such period. 

                        2.11.2     Letter
of Credit Fees. Borrower shall pay to Administrative Agent, for the account
of the Lenders (based on their respective Pro Rata Shares), a letter of credit
fee (the “Letter of Credit Fee”) for each issued and outstanding Letter
of Credit in an amount equal to the Applicable LIBOR Margin multiplied by the
daily amount available to be drawn under such Letter of Credit. For purposes of
computing the daily amount available to be drawn under any Letter of Credit,
the amount of such Letter of Credit shall be determined in accordance with Section
1.2.4. The Letter of Credit Fees shall be due and payable quarterly in
arrears on (a) each January 1, April 1, July 1, and October 1, and (b) the
Maturity Date (with such final payment of the Letter of Credit Fee pro rated to
the Maturity Date). Borrower shall also pay to Administrative Agent, for the
account of the L/C Issuer, at the time each Letter of Credit is issued, a
fronting fee (the “Fronting Fee”) in an amount equal to twenty five (25)
basis points multiplied by the amount of such Letter of Credit. In addition,
Borrower shall pay directly to the L/C Issuer for its own account the other
customary administrative, issuance, presentation, amendment and other
processing fees, and other standard costs and charges, of the L/C Issuer
relating to letters of credit as from time to time in effect. Such customary
fees and standard costs and charges are due and payable on demand and are
nonrefundable.

36

                        2.11.3     Other
Fees. Borrower shall pay to Administrative Agent, for its own account, for
the account of the L/C Issuer or for the account of the Lenders, as applicable,
such other fees as are required by the engagement letter and/or fee letter
agreement, dated prior to or as of the Closing Date (the “Fee Letter”)
between Borrower and Administrative Agent.

          2.12       Computation
of Fees and Interest. All computations of interest and fees under this
Agreement shall be made on the basis of a 360-day year and actual days elapsed.
Interest and fees shall accrue during each period during which interest or such
fees are computed from the first day thereof to the last day thereof. Any
change in the interest rate on a Loan resulting from a change in the Reference
Rate or the applicable reserve requirement, deposit insurance assessment rate
or other regulatory cost shall become effective as of the opening of business
on the day on which such change in the Reference Rate or such reserve
requirement, assessment rate or other regulatory cost becomes effective. Each
determination of an interest rate by Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on Borrower and the
Lenders in the absence of manifest error.

          2.13       Payments
by Borrower.

                        2.13.1
Timing of Payments. All payments (including prepayments) made by
Borrower on account of principal, interest, fees and other amounts required
hereunder shall be made without set-off or counterclaim. All such payments
shall, except as otherwise expressly provided herein, be made to Administrative
Agent for the account of the Lenders at Administrative Agent’s Payment Office,
in dollars and in immediately available funds, no later than 12:00 p.m. on the
date specified herein. Any payment received by Administrative Agent later than
12:00 p.m. shall be deemed to have been received on the immediately succeeding
Business Day and any applicable interest or fee shall continue to accrue.
Administrative Agent will promptly (and in any event, not later than two
Business Days after Administrative Agent’s actual receipt) distribute to each
Lender its Pro Rata Share (or other applicable share as provided herein) of
such payment in like funds as received; provided, however, if and to the
extent Administrative Agent shall receive any such payment for the account of
Lenders on or before 12:00 p.m. on any Business Day and Administrative Agent
shall not have distributed to each Lender its Pro Rata Share (or other
applicable share as provided herein) on such Business Day, the distribution to
each Lender when made shall include, at no additional cost to Borrower,
interest at the Federal Funds Rate for each day from the date of Administrative
Agent’s actual receipt of such payment from Borrower until the date
Administrative Agent distributes to each Lender its Pro Rata Share (or other
applicable share as provided herein).

                        2.13.2
Non-Business Days. Subject to the provisions set forth in the definition
of the term “Interest Period.” whenever any payment hereunder is stated to be
due on a day other than a Business Day, such payment shall be made on the next
succeeding Business Day, and such extension of time shall in such case be
included in the computation of interest or fees, as the case may be.

                        2.13.3
Payment May be Made by Administrative Agent. Unless Administrative Agent
shall have received notice from Borrower prior to the date on which any payment
is due to Administrative Agent for the account of the Lenders or the L/C Issuer
hereunder that Borrower will not make such payment. Administrative Agent may
assume that Borrower has made such

37

payment on such date in accordance herewith and may, in reliance upon
such assumption, distribute to the Lenders or the L/C Issuer, as the case may
be, the amount due. In such event, if Borrower has not in fact made such
payment, then each of the Lenders or the L/C Issuer, as the case may be,
severally agrees to repay to Administrative Agent forthwith on demand the
amount so distributed to such Lender or the L/C Issuer, in immediately
available funds with interest thereon, for each day from and including the date
such amount is distributed to it to but excluding the date of payment to
Administrative Agent, at the greater of the Federal Funds Rate and a rate
determined by Administrative Agent in accordance with banking industry rules on
interbank compensation. A notice of Administrative Agent to any Lender or
Borrower with respect to any amount owing under this Section 2.13.3
shall be conclusive, absent manifest error.

          2.14     Payments
by the Lenders to Administrative Agent.

                    
2.14.1 Administrative Agent May Make Borrowings Available. With respect
to any Borrowing, unless Administrative Agent receives notice from a Lender at
least one Business Day prior to the date of such Borrowing, that such Lender
will not make available to Administrative Agent, for the account of Borrower,
the amount of that Lender’s Pro Rata Share of the Borrowing as and when
required hereunder, Administrative Agent may assume that each Lender has made
such amount available to Administrative Agent in immediately available funds on
the Borrowing date and Administrative Agent may (but shall not be so required),
in reliance upon such assumption, make available to Borrower on such date a
corresponding amount. In such event, if a Lender has not in fact made its share
of the applicable Borrowing available to Administrative Agent, then the
applicable Lender and Borrower severally agree to pay to Administrative Agent
forthwith on demand such corresponding amount in immediately available funds
with interest thereon, for each day from and including the date such amount is
made available to Borrower to but excluding the date of payment to
Administrative Agent, at (a) in the case of a payment to be made by such
Lender, the greater of the Federal Funds Rate and a rate determined by Administrative
Agent in accordance with banking industry rules on interbank compensation and
(b) in the case of a payment to be made by Borrower, the interest rate
applicable to Reference Rate Loans. If Borrower and such Lender shall pay such
interest to Administrative Agent for the same or an overlapping period,
Administrative Agent shall promptly remit to Borrower the amount of such
interest paid by Borrower for such period. If such Lender pays its share of the
applicable Borrowing to Administrative Agent, then the amount so paid shall
constitute such Lender’s Loan included in such Borrowing. Any payment by
Borrower shall be without prejudice to any claim Borrower may have against a
Lender that shall have failed to make such payment to Administrative Agent. A
notice of Administrative Agent to any Lender or Borrower with respect to any
amount owing under this Section 2.14.1 shall be conclusive, absent
manifest error.

                    
2.14.2 Obligations of Lenders Several. The obligations of the Lenders
hereunder to make Loans, to fund participations in Letters of Credit and to
make payments pursuant to Section 10.4(c) are several and not joint. The
failure of any Lender to make any Loan, to fund any such participation or to
make any payment under Section 10.4(c) on any date required hereunder
shall not relieve any other Lender of its corresponding obligation to do so on
such date. No Lender shall be responsible for the failure of any other Lender
to so make its Loan, to purchase its participation or to make its payment under
Section 10.4(c).

38

                    
2.14.3 Failure to Satisfy Conditions Precedent. If any Lender makes
available to Administrative Agent funds for any Loan to be made by such Lender
as provided in the foregoing provisions of this Article 2, and such
funds are not made available to Borrower by Administrative Agent because the
conditions to the applicable credit extension set forth in Article 5 are
not satisfied or waived in accordance with the terms hereof, Administrative
Agent shall return such funds (in like funds as received from such Lender) to
such Lender, without interest.

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

          2.15     Sharing
of Payments, Etc. If any Lender shall, by exercising any right of setoff or
counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of the Loans made by it, or the participations in L/C
Obligations held by it resulting in such Lender’s receiving payment of a
proportion of the aggregate amount of such Loans or participations and accrued
interest thereon greater than its Pro Rata Share thereof as provided herein,
then the Lender receiving such greater proportion shall (a) notify
Administrative Agent of such fact, and (b) purchase (for cash at face value) participations
in the Loans and subparticipations in L/C Obligations of the other Lenders, or
make such other adjustments as shall be equitable, so that the benefit of all
such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective Loans
and other amounts owing them, provided that: (i) if any such
participations or subparticipations are purchased and all or any portion of the
payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the
extent of such recovery, without interest; and (ii) the provisions of this
Section shall not be construed to apply to (x) any payment made by Borrower
pursuant to and in accordance with the express terms of this Agreement, or (y)
any payment obtained by a Lender as consideration for the assignment of or sale
of a participation in any of its Loans or subparticipations in L/C Obligations
to any assignee or participant, other than to Borrower or any subsidiary
thereof (as to which the provisions of this Section shall apply).

          2.16     Defaulting
Lender.

                    
2.16.1 Notice and Cure of Lender Default; Election Period; Electing Lenders.
Administrative Agent shall promptly notify (such notice being referred to as
the “Defaulting Lender Notice”) Borrower and each non-Defaulting Lender
if any Lender is a Defaulting Lender. Each non-Defaulting Lender shall have the
right, but in no event or under any circumstance the obligation, to fund any
amount that a Defaulting Lender fails to fund (the “Defaulting Lender Amount”),
provided that, within 20 days after the date of the Defaulting Lender
Notice (the “Election Period”), such non-Defaulting Lender or Lenders
(each such Lender, an “Electing Lender”) irrevocably commit(s) by notice
in writing (an “Election Notice”) to Administrative Agent, the other
Lenders and Borrower to fund the Defaulting Lender Amount. If Administrative
Agent receives more than one Election Notice within the Election Period, then
the commitment to fund the Defaulting Lender Amount shall be apportioned pro
rata among the Electing Lenders in the proportion that the amount of each such
Electing Lender’s Commitment

39

bears to the total Commitments of all Electing Lenders. If the
Defaulting Lender fails to pay the Defaulting Lender Amount within the Election
Period, (a) the Electing Lender or Lenders, as applicable, shall be
automatically obligated to fund the Defaulting Lender Amount (and Defaulting
Lender shall no longer be entitled to fund such Defaulting Lender Amount)
within three Business Days after such notice to Administrative Agent, which
Defaulting Lender Amount shall be applied towards reimbursement to
Administrative Agent or payment to Borrower as applicable, and (b) Borrower may
enforce any rights it may have under this Agreement, at law or in equity,
against Defaulting Lender. Notwithstanding any contrary provision of this
Agreement, if Administrative Agent has funded the Defaulting Lender Amount.
Administrative Agent shall be entitled to reimbursement from the Electing
Lenders for its portion of the Defaulting Lender Amount.

                    
2.16.2 Removal of Rights: Indemnity. Administrative Agent shall not be
obligated to transfer to a Defaulting Lender any payments made by or on behalf
of Borrower to Administrative Agent for the Defaulting Lender’s benefit; nor
shall a Defaulting Lender be entitled to the sharing of any payments hereunder
or under any Revolving Note until all Defaulting Lender Amounts are paid in
full. Administrative Agent shall hold all such payments received or retained by
it for the account of such Defaulting Lender. Amounts payable to a Defaulting
Lender shall be paid by Administrative Agent to reimburse Administrative Agent
and any Electing Lender pro rata for all Defaulting Lender Amounts funded by
such Persons. Solely for the purposes of voting or consenting to matters with
respect to the Loan Documents, a Defaulting Lender shall be deemed not to be a
“Lender” and such Defaulting Lender’s Commitment shall be deemed to be zero. A
Defaulting Lender shall have no right to participate in any discussions among
and/or decisions by Lenders hereunder and/or under the other Loan Documents.
This Section shall remain effective with respect to a Defaulting Lender until
such time as the Defaulting Lender shall no longer be in default of any of its
obligations under this Agreement by curing such default by payment of all
Defaulting Lender Amounts (a) within the Election Period, or (b) after the
Election Period with the consent of the non-Defaulting Lenders. Such Defaulting
Lender nonetheless shall be bound by any amendment to, or waiver of, any
provision of, or any action taken or omitted to be taken by Administrative
Agent and/or the non-Defaulting Lenders under, any Loan Document which is made
subsequent to the Defaulting Lender’s becoming a Defaulting Lender and prior to
such cure or waiver. The operation of this Section or the Section above alone
shall not be construed to increase or otherwise affect the Commitment of any
non-Defaulting Lender, or to relieve or excuse the performance by Borrower of
its duties and obligations hereunder or under any of the other Loan Documents.
Furthermore, nothing contained in this Section shall release or in any way
limit a Defaulting Lender’s obligations as a Lender hereunder and/or under any
other of the Loan Documents. Further, a Defaulting Lender shall indemnify and
hold harmless Administrative Agent and each of the non-Defaulting Lenders from
any claim, loss, or costs incurred by Administrative Agent and/or the
non-Defaulting Lenders as a result of a Defaulting Lender’s failure to comply
with the requirements of this Agreement, including any and all additional
losses, damages, costs and expenses (including attorneys’ fees) incurred by
Administrative Agent and any non-Defaulting Lender as a result of and/or in
connection with (i) a non-Defaulting Lender’s acting as an Electing Lender,
(ii) any enforcement action brought by Administrative Agent against a
Defaulting Lender, and (iii) any action brought against Administrative Agent
and/or Lenders. The indemnification provided above shall survive any
termination of this Agreement.

40

                    2.16.3
Commitment Adjustments. In connection with the adjustment of the amounts
of the Commitments of the Defaulting Lender and Electing Lender(s) upon the
expiration of the Election Period described above, Borrower, Administrative
Agent and Lenders shall execute such modifications to the Loan Documents as
shall, in the reasonable judgment of Administrative Agent, be necessary or
desirable in connection with the adjustment of the amounts of Commitments in
accordance with the foregoing provisions of this Section. For the purpose of
voting or consenting to matters with respect to the Loan Documents such
modifications shall also reflect the removal of voting rights of the Defaulting
Lender and increase in voting rights of Electing Lenders to the extent an
Electing Lender has funded the Defaulting Lender Amount. In connection with
such adjustments, each Defaulting Lender shall execute and deliver an
Assignment and Assumption covering that Lender’s Commitment and otherwise
comply with Section 10.5. If a Lender refuses to execute and deliver
such Assignment and Assumption or otherwise comply with Section 10.5,
such Lender hereby appoints Administrative Agent to do so on such Lender’s
behalf. Administrative Agent shall distribute an amended schedule of Lenders,
which shall thereafter be incorporated into this Agreement, to reflect such
adjustments. However, all such Defaulting Lender Amounts funded by
Administrative Agent or Electing Lenders shall continue to be Defaulting Lender
Amounts of the Defaulting Lender pursuant to its obligations under this
Agreement.

                    2.16.4
No Election. In the event that no Lender elects to commit to fund a
Defaulting Lender Amount within the applicable Election Period, Administrative
Agent shall, upon the expiration of such Election Period, so notify Borrower
and each Lender.

3.        TAXES, YIELD
PROTECTION AND ILLEGALITY.

          3.1     Taxes.

                    3.1.1
Payments Free of Taxes. Any and all payments by or on account of any
obligation of Borrower hereunder or under any other Loan Document shall be made
free and clear of and without reduction or withholding for any Indemnified
Taxes or Other Taxes, provided that if Borrower shall be required by applicable
Law to deduct any Indemnified Taxes (including any Other Taxes) from such
payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section 3.1) Administrative Agent,
Lender or L/C Issuer, as the case may be, receives an amount equal to the sum
it would have received had no such deductions been made, (ii) Borrower shall
make such deductions, and (iii) Borrower shall timely pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable
Law. 

                    3.1.2
Payment of Other Taxes by Borrower. Without limiting the provisions of
Section 3.1.1 above, Borrower shall timely pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable Law.

                    3.1.3
Indemnification by Borrower. Borrower shall indemnify Administrative
Agent, each Lender and the L/C Issuer, within 10 days after demand therefor,
for the full amount of any Indemnified Taxes or Other Taxes (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
amounts payable under this Section) paid by Administrative 

41

Agent, such Lender or the L/C Issuer, as the case may be, and any
penalties, interest and reasonable expenses arising therefrom or with respect
thereto, that are actually imposed, incurred or paid, whether or not such
Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted
by the relevant Governmental Authority. A certificate as to the amount of such
payment or liability delivered to Borrower by a Lender or the L/C Issuer (with
a copy to Administrative Agent), or by Administrative Agent on its own behalf
or on behalf of a Lender or the L/C Issuer, shall be conclusive absent manifest
error.

                    3.1.4
Evidence of Payments. As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by Borrower to a Governmental Authority,
Borrower shall deliver to Administrative Agent the original or a certified copy
of a receipt issued by such Governmental Authority evidencing such payment, a
copy of the return reporting such payment or other evidence of such payment
reasonably satisfactory to Administrative Agent.

                    3.1.5
Status of Lenders. Any Foreign Lender that is entitled to an exemption
from or reduction of withholding tax under the law of the jurisdiction in which
Borrower is resident for tax purposes, or any treaty to which such jurisdiction
is a party, with respect to payments hereunder or under any other Loan Document
shall deliver to Borrower (with a copy to Administrative Agent), at the time or
times prescribed by applicable Law or reasonably requested by Borrower or
Administrative Agent, such properly completed and executed documentation
prescribed by applicable Law as will permit such payments to be made without
withholding or at a reduced rate of withholding. In addition, any Lender, if
requested by Borrower or Administrative Agent, shall deliver such other
documentation prescribed by applicable Law or reasonably requested by Borrower
or Administrative Agent as will enable Borrower or Administrative Agent to
determine whether or not such Lender is subject to backup withholding or
information reporting requirements. Without limiting the generality of the
foregoing, in the event that Borrower is resident for tax purposes in the
United States, any Foreign Lender shall deliver to Borrower and Administrative
Agent (in such number of copies as shall be requested by the recipient) on or
prior to the date on which such Foreign Lender becomes a Lender under this
Agreement (and from time to time thereafter upon the request of Borrower or
Administrative Agent, but only if such Foreign Lender is legally entitled to do
so), whichever of the following is applicable: (i) duly completed copies of
Internal Revenue Service Form W-8BEN claiming eligibility for benefits of an
income tax treaty to which the United States is a party, (ii) duly completed
copies of Internal Revenue Service Form W-8ECI, (iii) in the case of a Foreign
Lender claiming the benefits of the exemption for portfolio interest under
Section 881(c) of the Code, (x) a certificate to the effect that such Foreign
Lender is not (A) a “bank” within the meaning of Section 881(c)(3)(A) of the
Code, (B) a “10 percent shareholder” of Borrower within the meaning of Section
881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described
in Section 881(c)(3)(C) of the Code and (y) duly completed copies of Internal
Revenue Service Form W-8BEN, or (iv) any other form prescribed by applicable
Law as a basis for claiming exemption from or a reduction in United States
Federal withholding tax duly completed together with such supplementary
documentation as may be prescribed by applicable Law to permit Borrower to
determine the withholding or deduction required to be made.

                    3.1.6
Treatment of Certain Refunds. If Administrative Agent, any Lender or the
L/C Issuer determines, in its sole discretion, that it has received a refund of
any Taxes or Other Taxes as to which it has been indemnified by Borrower or
with respect to which Borrower has 

42

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

          3.2       Illegality.
If any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its
applicable Lending Office to make, maintain or fund LIBOR Loans, or to
determine or charge interest rates based upon the LIBOR Base Rate, or any
Governmental Authority has imposed material restrictions on the authority of
such Lender to purchase or sell, or to take deposits of, dollars in the London
interbank market, then, on notice thereof by such Lender to Borrower through
Administrative Agent (a “LIBOR Suspension Notice”), any obligation of
such Lender to make or continue LIBOR Loans or to convert Reference Rate Loans
to LIBOR Loans shall be suspended until such Lender notifies Administrative
Agent and Borrower that the circumstances giving rise to such determination no
longer exist. Upon receipt of such LIBOR Suspension Notice, Borrower shall,
upon demand from such Lender (with a copy to Administrative Agent), repay,
prepay or, if applicable, convert all LIBOR Loans of such Lender to Reference
Rate Loans, either on the last day of the Interest Period therefor, if such
Lender may lawfully continue to maintain such LIBOR Loans to such day, or
immediately, if such Lender may not lawfully continue to maintain such LIBOR
Loans. Upon any such prepayment or conversion, Borrower shall also pay accrued
interest on the amount so prepaid or converted. Delivery of a LIBOR Suspension
Notice shall not affect the obligation of any other Lender to make, maintain
and fund LIBOR Loans under the terms of this Agreement, unless such other
Lender also delivers a LIBOR Suspension Notice under this Section 3.2.

          3.3     Increased
Costs.

                    3.3.1
Increased Costs Generally. If any Change in Law shall: (i) impose,
modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for
the account of, or credit extended or participated in by, any Lender (except
any reserve requirement reflected in the LIBOR Rate) or the L/C Issuer; (ii)
subject any Lender or the L/C Issuer to any tax of any kind whatsoever with
respect to this Agreement, any Letter of Credit, any participation in a Letter
of Credit or any LIBOR Loan made by it, or change the basis of taxation of
payments to such Lender or the L/C Issuer in respect thereof (except for
Indemnified Taxes or Other Taxes covered by Section 3.1 and the imposition
of, or any change in the rate of, any Excluded Tax payable by such Lender or
the L/C Issuer); or (iii) impose on any Lender or the L/C Issuer or the London
interbank market any other condition, cost or expense affecting this Agreement
or LIBOR Loans made by such 

43

Lender or any Letter of Credit or participation therein; and the result
of any of the foregoing shall be to increase the cost to such Lender of making
or maintaining any LIBOR Loan (or of maintaining its obligation to make any
such Loan), or to increase the cost to such Lender or the L/C Issuer of
participating in, issuing or maintaining any Letter of Credit (or of
maintaining its obligation to participate in or to issue any Letter of Credit),
or to reduce the amount of any sum received or receivable by such Lender or the
L/C Issuer hereunder (whether of principal, interest or any other amount) then,
upon request of such Lender or the L/C Issuer, Borrower shall pay to such
Lender or the L/C Issuer, as the case may be, such additional amount or amounts
as will compensate such Lender or the L/C Issuer, as the case may be, for such
additional costs incurred or reduction suffered.

                    3.3.2
Capital Requirements. If any Lender or the L/C Issuer determines that
any Change in Law affecting such Lender or the L/C Issuer or any Lending Office
of such Lender or such Lender’s or the L/C Issuer’s holding company, if any,
regarding capital requirements has or would have the effect of reducing the
rate of return on such Lender’s or the L/C Issuer’s capital or on the capital
of such Lender’s or the L/C Issuer’s holding company, if any, as a consequence
of this Agreement, the Commitments of such Lender or the Loans made by, or
participations in Letters of Credit held by, such Lender, or the Letters of
Credit issued by the L/C Issuer, to a level below that which such Lender or the
L/C Issuer or such Lender’s or the L/C Issuer’s holding company could have
achieved but for such Change in Law (taking into consideration such Lender’s or
the L/C Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s
holding company with respect to capital adequacy), then from time to time
Borrower will pay to such Lender or the L/C Issuer, as the case may be, such
additional amount or amounts as will compensate such Lender or the L/C Issuer
or such Lender’s or the L/C Issuer’s holding company for any such reduction
suffered.

                    3.3.3
Delay in Requests. Failure or delay on the part of any Lender or the L/C
Issuer to demand compensation pursuant to the foregoing provisions of this Section
3 shall not constitute a waiver of such Lender’s or the L/C Issuer’s right
to demand such compensation, provided that Borrower shall not be required to
compensate a Lender or the L/C Issuer pursuant to the foregoing provisions of
this Section 3 for any increased costs incurred or reductions suffered
more than three months prior to the date that such Lender or the L/C Issuer, as
the case may be, notifies Borrower in writing of the Change in Law giving rise
to such increased costs or reductions and of such Lender’s or the L/C Issuer’s
intention to claim compensation therefor (except that, if the Change in Law
giving rise to such increased costs or reductions is retroactive, then the
three-month period referred to above shall be extended to include the period of
retroactive effect thereof). 

          3.4       Funding
Losses. Borrower agrees to pay to Administrative Agent, from time to time,
for the account of the Lenders, any amount that would be necessary to reimburse
the Lenders for, and to hold the Lenders harmless from, any loss or expense
which the Lenders may reasonably sustain or incur as a consequence of:

                    (a)
the failure of Borrower to make any required payment or prepayment of principal
of any LIBOR Loan (including payments made after any acceleration thereof);

44

                    (b)
the failure of Borrower to borrow, continue or convert a Loan after Borrower
has given a Notice of Borrowing or Conversion/Continuation;

                    (c)
the failure of Borrower to make any prepayment after Borrower has given a
notice in accordance with Section 2.8.1;

                    (d)
the prepayment (including pursuant to Section 2.8.2) of a LIBOR Loan on
a day which is not the last day of the Interest Period with respect thereto;

                    (e)
the conversion pursuant to Section 2.6 of any LIBOR Loan to a Reference
Rate Loan on a day that is not the last day of the respective Interest Period;
or

                    (f)
any assignment of a LIBOR Loan on a day other than the last day of the Interest
Period therefor as a result of a request by Borrower pursuant to Section
10.13;

including any such loss or expense arising from the liquidation or
reemployment of funds obtained to maintain the LIBOR Loans hereunder or from
fees payable to terminate the deposits from which such funds were obtained.
Solely for purposes of calculating amounts payable by Borrower to
Administrative Agent, for the account of Lenders, under this Section 3.4,
each LIBOR Loan (and each related reserve, special deposit or similar
requirement) shall be conclusively deemed to have been funded at the rate of
interest used to determine such LIBOR Loan by a matching deposit or other
borrowing in the London interbank eurodollar market for a comparable amount and
for a comparable period, whether or not such LIBOR Loan is in fact so funded.

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

          3.6       Certificate
of Lender. Any Lender or the L/C Issuer if claiming reimbursement or
compensation pursuant to this Article 3, shall deliver to Borrower
through Administrative Agent a certificate setting forth in reasonable detail
the amount payable to such Lender or the L/C Issuer, or its holding company, as
the case may be, hereunder, and such certificate shall be conclusive absent
manifest error. Borrower shall pay such Lender or the L/C Issuer, as the case
may be, the amount shown as due on any such certificate within 10 days after
receipt thereof.

45

          3.7       Mitigation
Obligations; Replacement of Lenders.

                     (a)
Designation of a Different Lending Office. If any Lender requests
compensation under Section 3.3, or Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 3.1, or if any Lender gives a notice
pursuant to Section 3.2, then such Lender shall use reasonable efforts
to designate a different Lending Office for funding or booking its Loans
hereunder or to assign its rights and obligations hereunder to another of its
offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable
pursuant to Section 3.1 or 3.3, as the case may be, in the
future, or eliminate the need for the notice pursuant to Section 3.2, as
applicable, and (ii) in each case, would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such
Lender. Borrower hereby agrees to pay all reasonable costs and expenses
incurred by any Lender in connection with any such designation or assignment.

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

          3.8       Survival.
The agreements and obligations of Borrower in this Article 3 shall
survive the payment and performance of all other Obligations.

4.        UNENCUMBERED ASSET
POOL.

          4.1       Additions
of Property to the Unencumbered Asset Pool.

                     (a)       In
addition to the real property described in Exhibits A attached hereto,
Borrower may from time to time request that Administrative Agent add a new
property (a “Nominated Property”) to the Unencumbered Asset Pool. To
become an Unencumbered Asset Pool Property, a Nominated Property must satisfy
each of the following conditions:

                              (1)
Borrower or a Permitted Affiliate shall hold fee simple title to such Nominated
Property (or, subject to Section 6.6(b), such Nominated Property is
subject to a financeable ground lease (as determined by Administrative Agent in
its reasonable discretion)) and such Nominated Property shall be located in the
continental United States;

                              (2)
Such Nominated Property is operated as an income-producing retail project;

                              (3)
Such Nominated Property shall have minimum occupancy of 80% (or if less than
80% occupied, then such Nominated Property, together with all other
Unencumbered Asset Pool Properties with a then minimum occupancy rate of less
than 80%, shall comprise less than 15% of the Unencumbered Asset Pool Value);

                              (4)
Borrower shall have delivered to Administrative Agent a copy of a Phase I
environmental site assessment for such Nominated Property, in form and
substance reasonably acceptable to Administrative Agent and prepared within one
year of its delivery, and 

46

such environmental site assessment (i) shall not disclose the presence
of any material toxic or Hazardous Substances on the Nominated Property (other
than asbestos or asbestos containing materials (“ACM”) or Hazardous Substances
used for cleaning, pool and other chemicals typically located on retail
properties that are otherwise consistent with all applicable Laws); and (ii) if
such environmental site assessment discloses the presence of asbestos or ACM on
the Nominated Property, all such asbestos or ACM shall be in a condition
reasonably acceptable to Administrative Agent, shall be subject to an O&M
Plan reasonably acceptable to Administrative Agent, and Borrower or a Permitted
Affiliate, as applicable, shall be performing its obligations under such
O&M Plan in a manner reasonably acceptable to Administrative Agent.
Notwithstanding the foregoing, if such Phase I environmental site assessment
for such Nominated Property is not available, a certificate executed by a
Responsible Officer of Borrower certifying to the matters set forth in the
foregoing clauses (i) and (ii) may be delivered to Administrative Agent in lieu
of such Phase I environmental site assessment;  

                              (5)
Such Nominated Property shall be free of all liens, encumbrances and negative
pledges, except for the following permitted liens (“Permitted Liens”): (i)
liens for taxes, assessments or governmental charges or levies to the extent
that the amount secured thereby is not yet delinquent; and (ii) liens imposed
by law, such as carrier’s, warehouseman’s, mechanic’s, materialman’s and other
similar liens, arising in the ordinary course of business in respect of
obligations that are not overdue or are being actively contested in good faith
by appropriate proceedings and in compliance with Section 6.14(c)
hereof, as long as Borrower or a Permitted Affiliate, as applicable, has
established and maintained adequate reserves for the payment of the same and,
by reason of nonpayment, no property of Borrower or a Permitted Affiliate, as
applicable, is in danger of being lost or forfeited; and (iii) easements;
zoning restrictions, covenants, conditions and restrictions; reciprocal
easement and access agreements and similar agreements relating to ownership and
operation; and 

                              (6)
The portion of the Unencumbered Asset Pool Value attributable to such Nominated
Property shall not exceed thirty percent (30%).

Nominated Properties that satisfy all of the foregoing conditions,
subject to Section 4.2, will become Unencumbered Asset Pool Properties
at the sole and absolute discretion of the Required Lenders.

                     (b)       Borrower
may, at its option, elect to remove an Unencumbered Asset Pool Property from
the Unencumbered Asset Pool, from time to time, including when such property is
sold, disposed of, or no longer meets the qualifications of an Unencumbered
Asset Pool Property. When (i) an Unencumbered Asset Pool Property is removed from
the Unencumbered Asset Pool and Borrower or its Permitted Affiliate continues
to own the property, on or before the removal of the Unencumbered Asset Pool
Property from the Unencumbered Asset Pool, Borrower shall deliver to
Administrative Agent a written notice, setting forth the identity of the
Unencumbered Asset Pool Property to be removed and the requested date of
removal; and (ii) an Unencumbered Asset Pool Property is removed from the
Unencumbered Asset Pool and Borrower or its Permitted Affiliate no longer has
ownership of the property, within five Business Days after such Unencumbered
Asset Pool Property is sold or disposed of, Borrower shall deliver to
Administrative Agent a written notice, setting forth the identity of the
Unencumbered Asset Pool Property that has been removed and the date of removal
(which date shall be deemed 

47

to be the date that Borrower no longer had ownership of such property).
Pursuant to the foregoing clauses (i) and (ii), with such notice, Borrower
shall also deliver a compliance certificate, substantially similar to the form
of Exhibit D (a “Compliance Certificate”), signed and
certified by an authorized financial officer of Borrower (A) setting forth the
information and computations (in sufficient detail) to determine the
Unencumbered Asset Pool Value after such removal; (B) provided from information
based upon the most recently delivered financial statements under Section
6.3 hereof, establishing that, on a pro-forma basis as if such Unencumbered
Asset Pool Property had been removed from the Unencumbered Asset Pool before
the end of the reporting period under such financial statements, Borrower would
be in compliance with all financial covenants set forth in this Agreement
following such removal as of the date of such financial statements; (C) stating
specifically that the aggregate Outstanding Amount of Loans plus the
Outstanding Amount of L/C Obligations after such removal will be less than or
equal to the Availability; and (D) setting forth whether there exists or to the
best of Borrower’s knowledge as of the date of such removal there will exist,
any Default or Event of Default and, if any such Default or Event of Default
exists, specifying the nature thereof and the action Borrower is taking and
proposes to take with respect thereto. At the time of any such removal,
Borrower shall pay Administrative Agent all reasonable attorneys’ fees
(including fees for in-house counsel) incurred by Administrative Agent in
connection with removing the property from the Unencumbered Asset Pool and
shall make any payments to continue compliance with the terms of this
Agreement, including those relating to the requirement that the aggregate
Outstanding Amount of Loans plus the Outstanding Amount of L/C Obligations not
exceed the Availability, necessary as a result of the requested removal. So
long as the foregoing conditions are fully satisfied, the consent of the
Required Lenders shall not be required in connection with any such removal of
an Unencumbered Asset Pool Property from the Unencumbered Asset Pool. 

                     (c)       If
the Unencumbered Asset Pool as a whole fails to meet any of the conditions set
forth in Section 4.1(a) and any one of two or more properties might be removed
to maintain compliance of the Unencumbered Asset Pool as a whole with the such
conditions, then Borrower shall select the property or properties to be
removed, provided that if Borrower does not do so within ten days of written
request to do so from Administrative Agent, then Administrative Agent may in
its sole discretion select the property or properties to remove and so remove
them. At the time of any such removal, Borrower shall pay Administrative Agent
all reasonable attorneys’ fees (including fees for in-house counsel) incurred
by Administrative Agent in connection with removing the property from the
Unencumbered Asset Pool, and shall make any payments to continue compliance
with the terms of this Agreement, including but not limited to those relating
to the requirement that the aggregate Outstanding Amount of Loans plus the
Outstanding Amount of L/C Obligations not exceed the Availability, necessary as
a result of such removal.  

          4.2       Delivery
of Information. In connection with each request to add a Nominated Property to
the Unencumbered Asset Pool, Borrower will submit to Administrative Agent all
of the following information and documentation: 

                     (a)       a
current Phase I environmental site assessment for such Nominated Property
addressed to Borrower or a Permitted Affiliate, if requested by Administrative
Agent;

48

                     (b)       a
title insurance policy insuring Borrower’s or a Permitted Affiliate’s fee title
to (or financeable leasehold in) such Nominated Property free of any Liens,
except for Permitted Liens, and the most recent title report which Borrower
possesses with respect to such Nominated Property;

                     (c)       a
current rent roll and leasing status report for such Nominated Property;

                     (d)       an
operating statement for such Nominated Property (which shall include a detailed
analysis of the net operating income generated from such property, including
gross rental receipts, detailed operating expenses, capital expenditures and
other relevant information) for the four most recent consecutive calendar
quarters for which Borrower has operating information (or, if operating
information for fewer than four consecutive calendar quarters is available to
Borrower, an operating statement for such Nominated Property for the number of
the most recent consecutive calendar quarters for which Borrower has operating
information);

                     (e)       if
such Nominated Property is owned by a Permitted Affiliate, a Payment Guaranty,
executed by such Permitted Affiliate, together with all of the items described
in Sections 5.1.1(b), (c), (d), (e) and (f) with respect to such
Permitted Affiliate;

                     (f)       a
certification signed by a Responsible Officer that no material structural
defects and no material environmental condition or contamination (including,
but not limited to, with respect to any Hazardous Substances) exist with
respect to the Nominated Property; and

                     (g)       any
other information, documentation or other items relating to the Nominated
Property that Administrative Agent may reasonably require.

Notwithstanding anything to the contrary contained herein, no property
owned by any subsidiary of Borrower shall be counted as an Unencumbered Asset
Pool Property unless such property is nominated as a Nominated Property
pursuant to Section 4.1 and Section 4.2 and the subsidiary
becomes a “Permitted Affiliate” hereunder by executing the Payment Guaranty and
delivering the other documents described in Section 4.2(e) hereof.

5.        CONDITIONS TO
DISBURSEMENTS.

          5.1       Conditions
to Initial Loans. The obligation of the Lenders to make the initial Loan
after the Closing Date is subject to the satisfaction of all of the following
conditions precedent:

                      5.1.1     Deliveries
to Administrative Agent. Administrative Agent shall have received each of
the following items, in form and substance satisfactory to Administrative Agent
and the Lenders:

                      (a)         Loan
Documents. This Agreement, each Revolving Note, each Payment Guaranty
issued by each Permitted Affiliate listed on Schedule 1.4, and each other
document the Required Lenders may reasonably require, executed and acknowledged
as appropriate;

                      (b)         Authorizations.
Evidence that the execution, delivery and performance by Borrower and each
Permitted Affiliate, as the case may be, of this Agreement and the other Loan 

49

Documents have been duly authorized, executed and delivered by
Responsible Officers of Borrower and each Permitted Affiliate, including,
without limitation, authorizing resolutions and incumbency certificates for
such Responsible Officers;

                    (c)       Governing
Documents. Copies of Borrower’s articles of incorporation and by-laws and
any amendments and modifications thereto, and each Permitted Affiliate’s
organizational or formation documents and any amendment and modifications
thereto;

                    (d)       Good
Standing. Certificates of Good Standing for Borrower and each Permitted
Affiliate from their respective states of organization and from any other state
in which Borrower and/or each Permitted Affiliate is required to qualify to
conduct its business;

                    (e)       Legal
Opinions. A written opinion of Borrower’s legal counsel and each Permitted
Affiliate’s legal counsel, each covering such matters as the Administrative
Agent may reasonably require. The legal counsel and the terms of the opinion
must be reasonably acceptable to Administrative Agent;

                    (f)        Insurance.
If required by Administrative Agent, evidence of any insurance coverage
required by Section 6.1.3 of this Agreement; 

                    (g)       Certificate
Regarding No Default or Material Adverse Change. A certificate of
Borrower’s Responsible Officer, dated the Closing Date, certifying that (i) the
representations and warranties contained in Article 7 are true and
correct on and as of such date, as though made on and as of such date; (ii) the
calculation of the Availability as of the Closing Date is true and correct on
and as of such date; (iii) no Default or Event of Default nor any default under
any existing credit facility of Borrower exists or would result from the
extensions of credit advanced on the Closing Date; and (iv) no material adverse
change in the business, assets, operations, condition (financial or otherwise)
or prospects of Borrower or any of its subsidiaries or Affiliates has occurred
since the date of the last audited financial statements of Borrower delivered
by Borrower to Administrative Agent;

                    (h)       Property
Information. A copy of each item described in Sections 4.2(b) and (e)
and evidence of the insurance required under Section 6.1.3 for each
Unencumbered Asset Pool Property listed in Part B of Exhibit A hereto.  

                    (i)       Compliance
Certificate. A duly executed and completed Compliance Certificate
evidencing pro forma compliance with the financial covenants contained herein.

                    (j)       Other
Items. Any other items that Administrative Agent reasonably requires.

          Without
limiting the generality of the provisions of Section 9.4, for purposes
of determining compliance with the conditions specified in this Section 5.1,
each Lender that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless Administrative Agent shall have received
written notice from such Lender prior to the proposed Closing Date specifying
its objection thereto.

50

                    5.1.2     Payment
of Fees. Borrower shall have paid to Administrative Agent, for its own
account or for the account of the Lenders, as applicable, the fees set forth in
the Fee Letter that are due on or before the Closing Date.

                    5.1.3     Payment
of Expenses. Payment of the expenses of preparing this Agreement and the other
Loan Documents, including reasonable attorneys’ fees and costs, the review of
any Phase I environmental site assessments, and any and all other fees due from
Borrower to Administrative Agent.

          5.2       Conditions
of all Borrowings and Letters of Credit. The obligation of the Lenders to
make any Loan (including the initial Loan) or of the L/C Issuer to issue any
Letter of Credit is subject to the satisfaction of all of the following
conditions precedent on the relevant borrowing date:

                     (a)       Administrative
Agent shall have received a Notice of Borrowing or Conversion/Continuation
requesting an extension of credit;

                     (b)       The
requested extension of credit shall not cause the aggregate Outstanding Amount
of all Loans and the Outstanding Amount of all L/C Obligations to exceed the
Availability at such time;

                     (c)       The
representations and warranties of Borrower set forth in Article 7 of
this Agreement shall be true and correct in all material respects on and as of
the date of such Borrowing with the same force and effect as if made on and as
of such date;

                     (d)       No
Default or Event of Default shall exist or result from such Borrowing; and

                     (e)       If
Borrower has requested issuance of a Letter of Credit, Administrative Agent
shall have received a Letter of Credit Application signed by the account party
(and Borrower, if Borrower is not the account party), and the Fronting Fee for
such Letter of Credit described in Section 2.11.2.

6.        COVENANTS OF
BORROWER. Borrower promises to keep each of the following covenants:

           6.1       Specific
Affirmative Covenants.

                     6.1.1     Compliance
with Law. Borrower and each Permitted Affiliate, as applicable, shall
comply in all material respects with all existing and future laws (including
Environmental Laws), regulations, orders, building restrictions and
requirements of, and all agreements with and commitments to, all Governmental
Authorities having jurisdiction over Borrower or Borrower’s business or such
Permitted Affiliate or such Permitted Affiliate’s business, as applicable,
including those pertaining to the construction, sale, leasing or financing of
any Unencumbered Asset Pool Property or the environmental condition of any
Unencumbered Asset Pool Property, and with all recorded covenants and
restrictions affecting any Unencumbered Asset Pool Property (all collectively,
the “Requirements”). Notwithstanding any contrary provision in this
Section, (i) Borrower and each applicable Permitted Affiliate shall 

51

have a right to contest all existing and future Requirements of Law
(other than those relating to Environmental Laws) before complying therewith,
and (ii) Borrower and each Permitted Affiliate shall have a right to contest
all existing and future Requirements relating to Environmental Laws for one
year, before complying therewith, provide that no Unencumbered Asset Pool
Property is in danger of being lost or forfeited.

                    6.1.2     Site
Visits. Borrower and each Permitted Affiliate shall allow Administrative
Agent and Lenders access to each Unencumbered Asset Pool Property at any
reasonable time upon reasonable written notice by Administrative Agent to Borrower
(a) for the purpose of inspecting the Unencumbered Asset Pool Property, and (b)
upon reasonable belief by Administrative Agent or Lenders of the existence of a
matter that should be investigated, for the purpose of taking soil or
groundwater samples and conducting tests, among other things, to investigate
for the presence of Hazardous Substances. Borrower and each Permitted Affiliate
shall also allow Administrative Agent to examine, copy and review its and their
books and records. Neither Administrative Agent nor any Lender is under any
duty to visit or observe any Unencumbered Asset Pool Property, and
Administrative Agent is under no duty to examine any books or records. Any site
visit, observation or examination by Administrative Agent or any Lender shall
be solely for the purpose of protecting Administrative Agent’s and such
Lender’s interests and preserving Administrative Agent’s rights under the Loan
Documents. Neither Administrative Agent nor any Lender owes a duty of care to
protect Borrower, any Permitted Affiliate, or any other Person against, or to
inform Borrower, any Permitted Affiliate, or any other Person of, any adverse
condition affecting any Unencumbered Asset Pool Property, including any defects
in the design or construction of any improvements located on an Unencumbered
Asset Pool Property or the presence of any Hazardous Substances on an
Unencumbered Asset Pool Property.

                    6.1.3     Insurance.
Borrower and each Permitted Affiliate, as applicable, shall maintain the
following insurance:

                    (a)       Special
Form property damage insurance in non-reporting form on each of its
Unencumbered Asset Pool Properties, with a policy limit in an amount not less
than the full insurable value of the improvements located on such property on a
replacement cost basis, including tenant improvements, if any, with a
deductible amount, if any, reasonably satisfactory to Administrative Agent,
which insurance shall cover such risks as are ordinarily insured against by similar
businesses. The policy shall include a business interruption (or rent loss, if
more appropriate) endorsement which will provide coverage for rent and extra
expenses for twelve (12) months, and any other endorsements reasonably required
by Administrative Agent. Notwithstanding the foregoing, earthquake insurance
with respect to any Unencumbered Asset Pool Property shall not be required
unless (i) institutional lenders generally require earthquake insurance for
similar types of retail real property in the geographic location where such
Unencumbered Asset Pool Property is located, and (ii) such insurance is
generally available at commercially reasonable rates. 

                    (b)     Comprehensive
General Liability coverage with such limits as Administrative Agent may
reasonably require. This policy shall name Administrative Agent as an
additional insured. Coverage shall be written on an occurrence basis, not
claims made, and 

52

shall cover liability for personal injury, death, bodily injury and
damage to property, products and completed operations.

                    (c)     Workers’
compensation insurance for all employees of Borrower and each subsidiary in
such amount as is required by law and including employer’s liability insurance,
if required by Administrative Agent.

          All
policies of insurance required by Administrative Agent must be issued by
companies reasonably approved by Administrative Agent and otherwise be
reasonably acceptable to Administrative Agent as to amount, forms, risk coverages
and deductibles. In addition, each policy (except workers’ compensation) must
provide Administrative Agent at least 30 days’ prior notice of cancellation,
non-renewal or modification. If Borrower or a Permitted Affiliate, as
applicable, fails to keep any such coverage in effect while any Commitment is
outstanding, Administrative Agent may procure the coverage at Borrower’s
expense. Borrower shall reimburse Administrative Agent, on demand, for all
premiums advanced by Administrative Agent or Lenders, which advances shall be
considered to be additional loans to Borrower hereunder at the Default Rate
applicable to Reference Rate Loans. Neither Administrative Agent nor any Lender
shall, because of accepting, reasonably disapproving, approving or obtaining
insurance, incur any liability for (i) the existence, nonexistence, form or
legal sufficiency thereof, (ii) the solvency of any insurer, or (iii) the
payment of losses.

                    6.1.4     Preservation
of Rights. Borrower or the applicable Permitted Affiliate shall obtain and
preserve all rights, privileges and franchises necessary or desirable for the
operation of each Unencumbered Asset Pool Property owned by Borrower or such
Permitted Affiliate. Borrower and each Permitted Affiliate shall also obtain
and preserve all rights, privileges and franchises necessary or desirable for
the conduct of Borrower’s and such Permitted Affiliate’s business. Either
Borrower or the applicable Permitted Affiliate shall maintain any Unencumbered
Asset Pool Property owned by it in good condition and repair. Either Borrower
or the applicable Permitted Affiliate shall, at Borrower’s or such Permitted
Affiliates sole cost and expense, follow all recommendations in all material
respects in any asbestos survey conducted by an expert selected by Borrower or
such Permitted Affiliate and approved by Administrative Agent with respect to
any Unencumbered Asset Pool Property owned by Borrower or such Permitted
Affiliate regarding safety conditions for, and maintenance of, any asbestos
containing materials, including any recommendation to institute an O&M
Plan.

                    6.1.5     Taxes.
Borrower and each Permitted Affiliate shall make payments prior to delinquency
of all local, state and federal taxes; provided, however, that neither
Borrower nor any Permitted Affiliate need pay any such taxes (a) that it is
contesting in good faith and by appropriate proceedings that were promptly
commenced and are being diligently pursued, and (b) for which Borrower or such
Permitted Affiliate, as applicable, has created an appropriate reserve or other
provision as required by GAAP, and no material property of Borrower or such
Permitted Affiliate is in imminent danger of being lost or forfeited.

                    6.1.6     Appraisals.
Administrative Agent or Majority Lenders may at any time and from time to time
obtain an Appraisal (at the sole cost and expense of Borrower) for any
Unencumbered Asset Pool Property should any one or more of the following
conditions exist: (i) the then most-current Appraisal for such Unencumbered
Asset Pool Property is more than twelve 

53

(12) months old; (ii) an Event of Default exists; (iii) Borrower has
notified Administrative Agent that Borrower intends to extend the Original
Maturity Date, pursuant to Section 2.9 hereof; or (iv) a new or
updated Appraisal is required under any applicable Law. Except as specifically
set forth in the preceding sentence, Borrower shall not be required to pay for
any Appraisals. 

                    6.1.7     Certain
Unencumbered Asset Pool Covenants. In addition to the covenants and
requirements set forth in Section 4 above and Section 6.6 below, Borrower shall
ensure that the applicable Additional Unencumbered Asset Pool Requirements are
satisfied at all times.  

          6.2       Payment
of Expenses

                     (a)     Borrower
shall pay or reimburse Administrative Agent, within fifteen days after demand,
for (i) the costs of electronic distribution services incurred in connection
with the closing and administration of the transactions contemplated by the
Loan Documents; and (ii) costs, expenses and other amounts described in Section
10.4(a) hereof. Such costs and expenses shall include reasonable fees for
due diligence and environmental services (including only those services
performed by Administrative Agent’s or any Lender’s employees and the cost of
those services that Administrative Agent or any Lender incurs because it
believes that such services are required), electronic distribution service
charges, reasonable legal fees and expenses of counsel, counsel’s travel
expenses associated with any syndication, lender meetings or other conferences
and any other reasonable fees and costs for services, regardless of whether
such services are furnished by Administrative Agent’s or any Lender’s employees
or by independent contractors.

                     (b)     Borrower
shall pay or reimburse Administrative Agent for the benefit of each Lender
within fifteen days after demand for all costs and expenses, including all
electronic distribution service, legal, audit and review fees and expenses
(including the allocated cost of such services by Administrative Agent’s
employees) incurred by Administrative Agent in connection with the enforcement
or preservation of any rights or remedies under any Loan Document (including
any “workout” or restructuring of the Loans, and any bankruptcy, insolvency or
other similar proceeding, judicial proceeding or arbitration).

          Borrower
acknowledges that none of the fees described in Section 2.11 include
amounts payable by Borrower under this Section 6.2. All such sums
incurred by Administrative Agent or any Lender and not immediately reimbursed
by Borrower within fifteen days of written notice by Administrative Agent shall
be considered an additional loan to Borrower hereunder at the Default Rate
applicable to Reference Rate Loans. The agreements in this Section shall
survive the termination of the Commitments and repayment of all other
Obligations.

          6.3       Financial
and Other Information; Certification. Borrower shall provide to
Administrative Agent the following financial information and statements for
Borrower and its consolidated subsidiaries prepared on a consolidated basis:

                     (a)     Within
90 days after each fiscal year end, the annual audited consolidated financial
statements of Borrower prepared in accordance with GAAP, and accompanied by the
opinion of a nationally recognized Certified Public Accountant stating that
such consolidated financial statements present fairly the financial positions
of Borrower for the periods indicated in 

54

conformity with GAAP applied on a basis consistent with prior years and
are not subject to any “going concern” or like qualification or exception or
any qualification or exception as to the scope of such audit.

                     (b)     Within
45 days after the end of each fiscal quarter, quarterly unaudited financial
statements of Borrower, including cash flow statements, certified by a
Responsible Officer of Borrower, and (to the extent appropriate), be prepared
on a consolidated basis according to GAAP.

                     (c)     Within
120 days of Borrower’s fiscal year end, Borrower’s annual report, certified by
an appropriate Responsible Officer as being complete and correct in all
material respects.

                     (d)     Copies
of Borrower’s federal income tax return (with all schedule K-l’s attached),
within fifteen days of filing, and copies of any extensions of the filing date,
certified by an appropriate Responsible Officer as being complete and correct
in all material respects.

                     (e)     Copies
of Borrower’s Form 10-K Annual Report within fifteen (15) days of filing.

                     (f)     Copies
of Borrower’s Form 10-Q Quarterly Report within fifteen (15) days of filing and
copies of all statements, reports and notices sent or made available generally
by Borrower to its security holders at the time they are so sent or made
available, any financial statements contained therein to be certified by the
chief financial officer of Borrower, and (to the extent appropriate) to be
prepared on a consolidated basis according to GAAP and to include Borrower.

                     (g)     Within
forty five (45) days of the end of each of the first three fiscal quarters and
in addition within ninety (90) days of the end of each fiscal year, a
Compliance Certificate of Borrower signed and certified by an authorized
financial officer of Borrower (i) setting forth the information and computations
(in sufficient detail) to determine the Gross Asset Value, the Consolidated
Indebtedness, the Unencumbered Asset Pool Value, the Debt Service, the EBITDA,
the Fixed Charges, the Secured Debt, the Recourse Debt and any other required
calculations hereunder in order to establish that Borrower is in compliance
with all financial covenants set forth in this Agreement at the end of the
period covered by the financial statements then being furnished, (ii) stating
specifically that the Outstanding Amount of Loans plus the Outstanding Amount
of L/C Obligations is less than or equal to the Availability, and (iii) setting
forth whether there existed as of the date of the most recent financial
statements of Borrower and its consolidated subsidiaries and whether there
exists as of the date of the certificate, any Default or Event of Default under
this Agreement and, if any such Default or Event of Default exists, specifying
the nature thereof and the action Borrower is taking and proposes to take with
respect thereto.

                     (h)     Within
ninety (90) days after the end of fiscal year, Borrower’s one (1)-year calendar
budget and forecasts.

55

                     (i)     Within
thirty (30) days after the end of each fiscal year, an annual business plan and
annual cash flow projections for Borrower in form and content reasonably
acceptable to Administrative Agent.

                     (j)     Within
forty-five (45) days of the end of each fiscal quarter, an operating statement
and rent roll for each Unencumbered Asset Pool Property, each in form and
substance satisfactory to Administrative Agent. 

                     (k)     Any
other financial or other information concerning Borrower’s or any Permitted
Affiliate’s affairs and properties as Administrative Agent may reasonably
request, to be furnished promptly upon such request.

          Documents
required to be delivered pursuant to Section 6.3(f) or (g) (to
the extent any such documents are included in materials otherwise filed with
the SEC) may be delivered electronically and if so delivered, shall be deemed
to have been delivered on the date (i) on which Borrower posts such documents,
or provides a link thereto on Borrower’s website on the Internet at its website
address set forth on the signature page hereof (or such other website address
as notified to Administrative Agent and the Lenders); or (ii) on which such
documents are posted on Borrower’s behalf on an Internet or intranet website,
if any, to which each Lender and Administrative Agent have access (whether a
commercial, third-party website or whether sponsored by Administrative Agent); provided
that: (A) upon request by Administrative Agent, Borrower shall deliver paper
copies of such documents to Administrative Agent until a written request to cease
delivering paper copies is given by Administrative Agent, and (B) Borrower
shall notify (which may be by facsimile or electronic mail) Administrative
Agent of the posting of any such documents and provide to Administrative Agent
by electronic mail electronic versions (i.e., soft copies) of such
documents. Notwithstanding the foregoing in every instance Borrower shall be
required to provide paper copies of the Compliance Certificates, Administrative
Agent shall have no obligation to request the delivery or to maintain copies of
the documents referred to above, and in any event shall have no responsibility
to monitor compliance by Borrower with any such request for delivery, and each
Lender shall be solely responsible for maintaining its copies of such documents.

          Each of
Borrower and, by its execution of its consent hereto, each Permitted Affiliate,
hereby acknowledges that (a) Administrative Agent and/or the Arranger will make
available to the Lenders and the L/C Issuer materials and/or information
provided by or on behalf of Borrower or any Permitted Affiliate hereunder
(collectively, the “Borrower Materials”) by posting the Borrower
Materials on IntraLinks or another similar electronic system (the “Platform”),
and (b) certain of the Lenders may be “public-side” Lenders (i.e.,
Lenders that do not wish to receive material non-public information with
respect to Borrower, the Permitted Affiliates or their securities) (each, a “Public
Lender”). Each of Borrower and, by its execution of its consent hereto,
each Permitted Affiliate, agrees that (w) all the Borrower Materials that are
to be made available to Public Lenders shall be clearly and conspicuously
marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall
appear prominently on the first page thereof; (x) by marking the Borrower
Materials “PUBLIC,” Borrower and each Permitted Affiliate shall be deemed to
have authorized Administrative Agent, the Arranger, the L/C Issuer and the
Lenders to treat such Borrower Materials as not containing any material
non-public information with respect to Borrower, the Permitted Affiliates or
their securities for purposes of 

56

United States Federal and state securities laws (provided, however,
that to the extent such Borrower Materials constitute Information, they shall
be treated as set forth in Section 10.6); (y) all the Borrower Materials marked
“PUBLIC” are permitted to be made available through a portion of the Platform
designated “Public Investor;” and (z) Administrative Agent and the Arranger
shall be entitled to treat any of the Borrower Materials that are not marked
“PUBLIC” as being suitable only for posting on a portion of the Platform not
designated “Public Investor.” Notwithstanding the foregoing, neither Borrower
nor any Permitted Affiliate shall be under any obligation to mark any of the
Borrower Materials “PUBLIC.”  

          6.4       Notices.
Borrower shall promptly notify Administrative Agent in writing of any knowledge
that any officer of Borrower or any Permitted Affiliate has of:

                    (a)       any
litigation affecting Borrower, any Permitted Affiliate, any Unencumbered Asset
Pool Property, and/or any other subsidiary or affiliate of Borrower that
directly owns any Unencumbered Asset Pool Property or any development property
or whose financial results are consolidated with those of Borrower for
reporting purposes, in each case where the aggregate amount at risk or at issue
(including litigation costs and attorneys’ fees and expenses, but excluding
claims which, in Administrative Agent’s reasonable judgment, are expected to be
covered by insurance) exceeds: (l) in the case of litigation affecting an
Unencumbered Asset Pool Property, twenty percent (20%) of the property value of
such Unencumbered Asset Pool Property, or (2) in the case of litigation
affecting Borrower, any Permitted Affiliate or any such other subsidiary or
affiliate of Borrower, an aggregate amount of $10,000,000;

                    (b)       any
written notice from any Governmental Authority having jurisdiction thereover
that any property or Borrower’s or any Permitted Affiliate’s business fails in
any material respect to comply with any applicable Law (including any
Environmental Law), regulation or court order, where the failure to comply
could have a material adverse effect on Borrower or such Permitted Affiliate;

                    (c)       any
material adverse change in the physical condition of any Unencumbered Asset
Pool Property or Borrower’s or any Permitted Affiliate’s condition or operations,
or any other circumstance that materially adversely affects Borrower’s or a
Permitted Affiliate’s intended use of any Unencumbered Asset Pool Property or
Borrower’s ability to repay the Loans;

                    (d)       any
Default or Event of Default, and any failure to comply with this Agreement or
any other Loan Document or any other material agreement to which Borrower or
any Permitted Affiliate is a party, where such noncompliance has a material
adverse effect on the ability of Borrower or any Permitted Affiliate to perform
their respective obligations under the terms of the Loan Documents;

                    (e)       any
change in Borrower’s or any Permitted Affiliate’s name, legal structure,
jurisdiction of formation, place of business or chief executive office;

                    (f)       any
actual or threatened condemnation of any portion of any Unencumbered Asset Pool
Property given in writing to Borrower or any Permitted Affiliate, as 

57

the case may be, by any Governmental Authority, or any material loss of
or substantial damage to any Unencumbered Asset Pool Property;

                    (g)       any
written notice of any cancellation, alteration or non-renewal of any insurance
coverage maintained with respect to any Unencumbered Asset Pool Property; 

                    (h)       any
written notice received by Borrower from any Governmental Authority that any
Unencumbered Asset Pool Property, or any use activity, operation or maintenance
thereof or thereon, is not in compliance with any Law, including any
Environmental Laws, and including notice of (i) any and all enforcement,
cleanup, removal or other governmental or regulatory actions instituted,
completed or threatened against Borrower or any Permitted Affiliate or any of
their respective Unencumbered Asset Pool Properties pursuant to any applicable
Environmental Laws, and (ii) any environmental or similar condition on any real
property adjoining or in the vicinity of any Unencumbered Asset Pool Property
of Borrower or any Permitted Affiliate that could reasonably be anticipated to
cause the applicable Unencumbered Asset Pool Property or any part thereof to be
subject to any restrictions on the ownership, occupancy, transferability or use
of such Unencumbered Asset Pool Property under any Environmental Laws; or

                    (i)       any
purchase, sale or encumbrance of any asset or property of Borrower or any of
its consolidated subsidiaries in excess of $1,000,000, or the incurrence of any
Indebtedness by Borrower or any of its Permitted Affiliates of $1,000,000 or
more (and together with each such notice, Borrower shall provide an updated
Compliance Certificate).

          6.5       Negative
Covenants.

                    6.5.1     Limitations
on Certain Activities. Without the prior written consent of the Required
Lenders (or Administrative Agent at the request of the Required Lenders), which
consent shall not be unreasonably withheld or delayed:

                              (1)       other
than in the ordinary course of Borrower’s business, Borrower shall not lease
all or a substantial part of Borrower’s business or Borrower’s assets;

                              (2)       without
the prior written consent of the Required Lenders, Borrower shall not enter
into or invest in any consolidation, merger, pool, syndicate or other
combination unless Borrower is the surviving entity;

                              (3)       the
legal structure of Borrower shall not change from a Maryland corporation that
qualified to be taxed as a real estate investment trust under the provisions of
Internal Revenue Code Sections 856 through 860;

                              (4)       Borrower’s
or any Permitted Affiliate’s jurisdiction of formation, place of business, or
chief executive office (if Borrower or such Permitted Affiliate has more than
one place of business) shall not change except upon 30 days’ prior written
notice to Administrative Agent; and 

                              (5)       Borrower
shall not suffer a change in its executive management such that (i) H. Kerr
Taylor is no longer Chief Executive Officer, President and Chairman of the 

58

Board of Directors, (ii) Chad Braun is no longer Executive Vice
President, Chief Financial Officer, Chief Operating Officer, Treasurer and Secretary,
(iii) Brett P. Treadwell is no longer Managing Vice President, Finance and
Chief Accounting Officer or (iv) there is a change in 25% or more of Borrower’s
executive management which is in place on the Closing Date, unless such
executive management is replaced by parties reasonably acceptable to
Administrative Agent within ninety (90) days of such change.

                    6.5.2     Material
Changes. Borrower shall not in any case:

                              (1)       liquidate
or dissolve Borrower’s business;

                              (2)       liquidate
or dissolve the business of any Permitted Affiliate, unless prior to or
contemporaneously with such liquidation or dissolution, (x) all of the
Unencumbered Asset Pool Property owned by such Permitted Affiliate is removed
from the Unencumbered Asset Pool by Borrower pursuant to Section 4.1(b),
(y) such Unencumbered Asset Pool Property is no longer included in the
calculation of Availability hereunder, (z) after the removal of such
Unencumbered Asset Pool Property, the aggregate Outstanding Amount of Loans
plus the Outstanding Amount of L/C Obligations will be less than or equal to
the Availability and no Event of Default exists); or

                              (3)       dispose
of all or substantially all of Borrower’s business or of Borrower’s assets or
the business or assets of any Permitted Affiliate (with the exception of a
Permitted Affiliate that owns only one asset, in which case the business or
assets of such Permitted Affiliate may disposed of as long as, prior to or
contemporaneously with such disposition, (x) all of the Unencumbered Asset Pool
Property owned by such Permitted Affiliate is removed from the Unencumbered
Asset Pool by Borrower pursuant to Section 4.1(b), (y) such Unencumbered
Asset Pool Property is no longer included in the calculation of Availability
hereunder, (z) after the removal of such Unencumbered Asset Pool Property, the
aggregate Outstanding Amount of Loans plus the Outstanding Amount of L/C
Obligations will be less than or equal to the Availability and no Event of
Default exists).

          6.6       Type
of Business; Development Covenants. 

                    (a)       Borrower
shall own, manage, finance, lease and/or operate as an owner, developer and/or
asset manager income-producing retail properties located in the United States,
and all of Borrower’s other business activities and investments shall be
incidental thereto, with the exception of the investments described in clause
(ii) below. Borrower and its consolidated subsidiaries shall not own at any
time, on a consolidated basis:

                              (i)       entitled
and unentitled undeveloped land, 

                              (ii)       real
estate assets (other than retail properties), or investments in, or loans to,
companies that own and/or develop real estate (other than retail properties), 

                              (iii)       investments
in Mortgage Receivables, 

                              (iv)       stock
holdings, 

59

                                 (v)     retail
properties under development for which certificates of occupancy have not been
issued (excluding development on otherwise operating properties), 

                                  (vi)     Joint
Venture Investments 

the value of which exceeds, (A) in the aggregate for all assets
described in each of clauses (i)-(iv) above, 5% of Gross Asset Value, (B) in
the aggregate for all assets described in clause (v) above, 10% of Gross Asset
Value (which, for the purposes of determining the value of such retail
properties under development, shall include the estimated costs to complete
construction and development of the retail project and lease-up until
break-even occupancy), (C) in the aggregate for all assets described in clause
(vi) above, 10% of Gross Asset Value, or (D) in the aggregate for all assets
described in clauses (i)-(vi) above, 25% of Gross Asset Value. 

                         (b)      In addition to the restrictions in Section
6.6(a) above, at no time shall Borrower’s and its subsidiaries’ ownership
of, or investment in, real estate properties under financeable ground leases
with single tenants exceed 20% of the Gross Asset Value. 

          6.7          Performance
of Acts. Upon request by Administrative Agent, Borrower and each Permitted
Affiliate shall perform all acts required of them which may be reasonably
necessary or advisable to carry out the intent of the Loan Documents. 

          6.8          Keeping
Permitted Affiliates Informed. Borrower shall keep and each Permitted
Affiliate (and any other Person giving a guaranty to Administrative Agent and
Lenders with regard to the Loans), in its capacity as a guarantor, informed of
Borrower’s financial condition and business operations and all other
circumstances that may affect Borrower’s ability to pay or perform its
obligations under the Loan Documents. In addition, Borrower shall deliver to
each Permitted Affiliate and any other guarantor all of the financial
information required to be furnished to Administrative Agent under Section
6.3 hereunder. 

          6.9          Maximum
Consolidated Indebtedness Ratio. Consolidated Indebtedness shall not exceed
60% of Gross Asset Value. 

          6.10        Debt
Ratios. (a) The amount of Secured Debt shall not exceed 50% of the Gross
Asset Value during the 24 calendar month period immediately following the
Closing Date and thereafter, the amount of Secured Debt shall not exceed 45% of
the Gross Asset Value; (b) the Outstanding Amount of all Loans plus the
Outstanding Amount of all L/C Obligations shall not exceed the Availability;
and (c) the amount of Recourse Debt (excluding the Loans and L/C Obligations)
shall not exceed 15% of the Gross Asset Value. 

          6.11        Fixed
Charge Coverage Ratio. The ratio determined at the end of each calendar quarter
of (a) EBITDA for the four consecutive calendar quarter period ending on such
determination date divided by (b) the amount of Fixed Charges for such four
calendar quarter period shall not be less than 1.75:1.0. 

          6.12        Minimum
Consolidated Net Worth. Borrower shall not permit Consolidated Net Worth at
any time to be less than the sum of (a) $125,000,000, plus (b) 85% of the
aggregate proceeds received by Borrower (net of customary related fees and
expenses) in connection with any offering of stock by Borrower after the date
hereof. 

60

          6.13     Maximum
Quarterly Dividends. Borrower shall not declare or pay any distributions or
dividends except from cash flow available for distributions or dividends under
applicable Law, and in any event not in excess of 95% of Funds From Operations
on a rolling four calendar quarter basis. Notwithstanding the foregoing, the
total of common and preferred stock dividends on a rolling four (4) calendar
quarter basis may exceed Funds From Operations for the applicable period only
to the extent necessary for Borrower to retain its status as a real estate
investment trust under the provisions of Internal Revenue Code Sections 856
through 860. Notwithstanding the foregoing, during the continuance of any Event
of Default, aggregate distributions shall not exceed the minimum amount that
Borrower must distribute to its shareholders in order to qualify as a real
estate investment trust under the provisions of Internal Revenue Code Sections
856 through 860. 

          6.14     Negative
Pledge; Limitations on Affiliate Indebtedness. 

                      (a)     Neither
Borrower nor any Permitted Affiliate shall create, assume, or allow any Lien
(including any judicial lien) on any Unencumbered Asset Pool Property, and
Borrower shall not create, assume or allow any Lien (including any judicial
lien) on Borrower’s direct or indirect ownership interests in any Permitted
Affiliate, except for Permitted Liens. 

                      (b)     Neither
Borrower nor any Permitted Affiliate shall create, assume or allow any negative
pledge agreement in favor of any other Person affecting or relating to any
Unencumbered Asset Pool Property. In addition, neither Borrower nor any
Permitted Affiliate shall incur any Indebtedness owing to Borrower, any
Permitted Affiliate or any other Affiliate. 

                      (c)     Borrower
and each Permitted Affiliate shall have the right to contest in good faith by
appropriate legal or administrative proceeding the validity of any prohibited
Lien affecting its properties so long as (i) no Event of Default exists and is
continuing, (ii) Borrower or such Permitted Affiliate, as applicable, first
deposits with Administrative Agent a bond or other security satisfactory to
Administrative Agent in the amount reasonably required by Administrative Agent;
(iii) Borrower or such Permitted Affiliate, as applicable, immediately
commences its contest of such Lien and continuously pursues the contest in good
faith and with due diligence; (iv) foreclosure of the Lien is stayed; and (v)
Borrower or such Permitted Affiliate, as applicable, pays any judgment rendered
for the Lien claimant or other third party, unless such judgment has been
stayed as the result of an appeal, within 30 days after the entry of the
judgment. Borrower or such Permitted Affiliate, as applicable, will discharge
or elect to contest and post an appropriate bond or other security within 30
days of written demand by Administrative Agent. 

          6.15     Change
in Control or Management of the Unencumbered Asset Pool Property. Borrower
shall not cause, permit or suffer (a) any Change of Control or (b) any Person
other than Borrower or an Affiliate of Borrower to manage an Unencumbered Asset
Pool Property. Notwithstanding the foregoing, a Permitted Affiliate or, subject
to the prior written consent of Administrative Agent, which consent shall not
be unreasonably withheld or delayed, an independent third-party, may manage an
Unencumbered Asset Pool Property following the addition of such property into the
Unencumbered Asset Pool pursuant to Section 4. 

61

          6.16     Books
and Records. Each of Borrower and each Permitted Affiliate and each of
their respective subsidiaries shall maintain adequate books and records
(provided that, with respect to the Permitted Affiliates and subsidiaries, such
books and records shall mean its income and expense statements). 

          6.17     Audits.
Borrower and each Permitted Affiliate shall allow Administrative Agent and its
agents to inspect its properties and examine, audit and make copies of its
books and records at any reasonable time upon reasonable notice to Borrower. If
any of the properties, books or records of Borrower or any Permitted Affiliate
are in the possession of a third party, Borrower or such Permitted Affiliate,
as applicable, shall authorize that third party to permit Administrative Agent
or its agents to have access to perform inspections or audits and to respond to
Administrative Agent’s requests for information concerning such properties, books
and records. 

          6.18     Cooperation.
Borrower and each Permitted Affiliate shall take any action reasonably
requested by Administrative Agent to carry out the intent of this Agreement. 

          6.19     ERISA
Plans. Borrower shall give prompt written notice to Administrative Agent of
the occurrence of any ERISA Event. 

          6.20     Use
of Proceeds. Borrower shall use the proceeds of the Loan only for (a)
financing for acquisition, development and/or redevelopment of real and
personal property, (b) letters of credit, (c) working capital in Borrower’s
business, and (d) other purposes permitted by Borrower’s organizational
documents as they appear as of the Closing Date. 

          6.21     Use
of Proceeds – Ineligible Securities. Borrower shall not use any proceeds of
the Loans, directly or indirectly, to purchase or carry, or reduce or retire
any loan incurred to purchase or carry, any “Margin Stock” (within the meaning
of Regulation U of the Board of Governors of the Federal Reserve System) or to
extend credit to others for the purpose of purchasing or carrying any Margin
Stock. 

          6.22     Stock
Exchange Listing. Borrower shall at all times maintain a listing on the New
York Stock Exchange, NASDAQ or the American Stock Exchange. 

7.       REPRESENTATIONS
AND WARRANTIES.     When Borrower and each
Permitted Affiliate signs this Agreement, and until Administrative Agent and
Lenders are repaid in full Borrower makes the following representations and
warranties. Each request for an extension of credit constitutes a renewed
representation and warranty. 

          7.1       Organization
of Borrower and each Permitted Affiliate. Borrower is a corporation duly
formed, validly existing and in good standing under the laws of Maryland. Each
Permitted Affiliate is an entity duly organized, validly existing and in good
standing under the laws of its state of formation or organization. 

          7.2       Authorization.
The execution and compliance with this Agreement and each Loan Document to which
Borrower and each Permitted Affiliate is a party are within such Person’s
powers, have been duly authorized, and do not conflict with any of such
Person’s organizational or formation papers. 

62

          7.3     Enforceable
Agreement. This Agreement is a legal, valid and binding agreement of
Borrower, enforceable against Borrower in accordance with its terms, and it and
any Loan Document to which Borrower or any Permitted Affiliate is a party, when
executed and delivered, will be similarly legal, valid, binding and
enforceable, except as the same may be limited by insolvency, bankruptcy,
reorganization, or other laws relating to or affecting the enforcement of
creditors’ rights or by general equitable principles. 

          7.4     Good
Standing. In each state in which Borrower and each Permitted Affiliate does
business, it is properly licensed, in good standing, and, where required, in
compliance with fictitious name statutes. 

          7.5     No
Conflicts. Neither Borrower, any Permitted Affiliate, nor any Unencumbered
Asset Pool Property are in violation of, nor do the terms of this Agreement or
any other Loan Document conflict with, any law (including any Environmental
Laws), regulation or ordinance, any order of any court or governmental entity, any
organizational documents of Borrower or any Permitted Affiliate, or any
covenant or agreement affecting Borrower or any Permitted Affiliate or any
Unencumbered Asset Pool Property, which has a material adverse effect on
Borrower or any Permitted Affiliate or any Unencumbered Asset Pool Property. 

          7.6     Financial
Information. All financial information which has been and will be delivered
to Administrative Agent, including all information relating to the financial
condition of Borrower, any Permitted Affiliate and the Unencumbered Asset Pool
Property, did as of its date fairly and accurately represent the financial
condition being reported on. All such information was and will be prepared in
accordance with GAAP, unless otherwise noted. Since March 31, 2012, there has
been no material adverse change in the financial condition of Borrower, any
Permitted Affiliate or the Unencumbered Asset Pool Property. 

          7.7     Borrower
Not a “Foreign Person”. Borrower is not a “foreign person” within the
meaning of Section 1445(f)(3) of the Internal Revenue Code of 1986, as amended
from time to time. 

          7.8     Lawsuits.
There are no lawsuits, actions, tax claims, investigations, proceedings, or
other disputes, pending or threatened in writing, in any court or before any
arbitrator or Governmental Authority that purport to affect Borrower, any
subsidiaries or affiliates of Borrower, any Unencumbered Asset Pool Property,
or any transaction contemplated by this Agreement or any other Loan Document that
will have a material adverse effect on Borrower, any Unencumbered Asset Pool
Property, or any subsidiaries or affiliates of Borrower (including the
Permitted Affiliates), or any transaction contemplated by this Agreement or any
other Loan Document, or on the ability of Borrower, the Permitted Affiliates or
any of their subsidiaries or affiliates, to perform their respective
obligations under the Loan Documents, 

          7.9     Permits,
Franchises. To Borrower’s knowledge, Borrower and each Permitted Affiliate
possesses all permits, memberships, franchises, contracts and licenses required
and all trademark rights, trade name rights, patent rights and fictitious name
rights necessary to enable it to conduct the business in which it is now
engaged. 

63

          7.10     Other
Obligations. None of Borrower or any Permitted Affiliate is in material
default (taking into account all applicable cure periods, if any) on any
material obligation for borrowed money, any purchase money obligation or any
other material lease, commitment, contract, instrument or obligation. 

          7.11     Income
Tax Returns. Except as otherwise disclosed to Administrative Agent in a
writing referring to this Section 7.11, Borrower has no knowledge of any
pending assessments or adjustments of the income tax of Borrower or any
Permitted Affiliate in an amount in excess of $250,000 for any year,
individually or in the aggregate.  

          7.12     No
Event of Default. There is no event which is, or with notice or lapse of
time or both would be, an Event of Default under this Agreement. 

          7.13     ERISA
Plans. 

                      (a)     Borrower
has fulfilled its obligations, if any, under the minimum funding standards of
ERISA and the Code with respect to each Plan and is in compliance in all
material respects with the presently applicable provisions of ERISA and the
Code, and has not incurred any liability with respect to any Plan under Title
IV of ERISA. 

                      (b)     No
Reportable Event has occurred. 

                      (c)     No
action by Borrower to terminate or withdraw from any Plan has been taken and no
notice of intent to terminate a Plan has been filed under Section 4041 of
ERISA. 

                      (d)     No
proceeding has been commenced with respect to a Plan under Section 4042 of
ERISA, and no event has occurred or condition exists which might constitute
grounds for the commencement of such a proceeding. 

          7.14     Location
of Borrower. Borrower’s place of business (or, if Borrower has more than
one place of business, its chief executive office) is located at the address
listed under Borrower’s signature on this Agreement or at such other place as
to which Borrower has notified Administrative Agent in writing. 

          7.15     No
Required Third Party/Governmental Approvals. No approval, consent,
exemption, authorization, or other action by, or notice to, or filing with any
third party or any Governmental Authority, is necessary or required in
connection with the execution, delivery or performance of this Agreement or any
other Loan Document to which Borrower or any Permitted Affiliate is a party, or
the enforcement of any such agreements against Borrower or any Permitted
Affiliate. 

          7.16     Regulated
Entities. Neither Borrower nor any Person controlling Borrower is an
“Investment Company” within the meaning of the Investment Company Act of 1940;
or subject to regulation under the Public Utility Holding Company Act of 1935,
the Federal Power Act, the Interstate Commerce Act, any state public utilities
code, or any other federal or state statute or regulation limiting its ability
to incur Indebtedness. 

8.       DEFAULT
AND REMEDIES. 

64

          8.1     Events
of Default. Borrower will be in default under this Agreement upon the
occurrence of any one or more of the following events (“Event of Default”):

                    (a)     Borrower
fails to make any payment due hereunder, or fails to make any payment demanded
by Administrative Agent under any Loan Document, on the earlier of (i) the Maturity
Date or (ii) the date when due or (y) if the payment is unscheduled, the date
when payment is demanded by Administrative Agent; or 

                    (b)     Borrower
fails to perform or observe any term, covenant or agreement contained in (i)
any of Sections 6.5, 6.6, 6.9, through 6.15, 6.19,
or 6.21; or (ii) any of Sections 6.1.3, or 6.17 and does
not cure that failure within fifteen days after written notice from
Administrative Agent; or (iii) Section 6.4 and does not cure that
failure within fifteen days after Borrower’s Knowledge of such failure; or 

                    (c)     Borrower
fails to comply with any covenant contained in this Agreement other than those
referred to in clauses (a) and (b), and does not either cure that failure
within thirty (30) days after written notice from Administrative Agent, or, if
the default cannot reasonably be cured in thirty (30) days, Borrower fails to
promptly commence cure (in any event, within ten days after receipt of such
notice), and thereafter diligently prosecute such cure to completion, and
complete such cure within ninety (90) days after receipt of such notice; or 

                    (d)     (i)
Borrower or any Permitted Affiliate institutes or consents to the institution
of any Insolvency Proceeding, makes an assignment for the benefit of creditors
or applies for or consents to the appointment of any receiver, trustee,
custodian, conservator, liquidator, rehabilitator or similar officer for it or
for all or any material part of its property; (ii) any receiver, trustee,
custodian, conservator, liquidator, rehabilitator or similar officer is
appointed without the application or consent of Borrower or any Permitted
Affiliate and the appointment continues undischarged or unstayed for sixty (60)
calendar days; (iii) any Insolvency Proceeding relating to Borrower or any
Permitted Affiliate or to all or any material part of its property is
instituted without the consent of such Person and continues undismissed or
unstayed for sixty (60) calendar days, or an order for relief is entered in any
such proceeding; (iv) Borrower or any Permitted Affiliate becomes unable or
admits in writing its inability or fails generally to pay its debts as they
become due, or (b) any writ or warrant of attachment or execution or similar process
is issued or levied against all or any material part of the property of
Borrower or any Permitted Affiliate and is not released, vacated or fully
bonded within thirty (30) days after its issue or levy; or 

                    (e)     Borrower
or any Permitted Affiliate dissolves or liquidates or a Change of Control
occurs; or 

                    (f)     Any
representation or warranty made or given in any of the Loan Documents proves to
be false or misleading in any material respect as of the time such representation
or warranty was made or deemed made; or 

                    (g)     Any Permitted Affiliate breaches or fails to comply with (i) any monetary covenant
or payment obligation under the Payment Guaranty as required thereunder (which
breach or failure continues after any applicable notice and grace period
contained in the Payment 

65

Guaranty) or (ii) with any other covenant contained in
the Payment Guaranty, this Agreement or any other Loan Document applicable to
it in any material respect and such Permitted Affiliate does not cure
its breach of such other covenant within thirty (30) days after written notice
from Administrative Agent, or, if such breach cannot reasonably be cured in
thirty (30) days, such Permitted Affiliate fails to promptly commence cure (in any
event, within ten days after receipt of such notice), and thereafter diligently
prosecute such cure to completion, and complete such cure within ninety (90)
days after receipt of such notice; or 

               (h)     A
defined event of default occurs under any of the Loan Documents; or 

               (i)     A
final non-appealable judgment or order is entered against Borrower or any
Permitted Affiliate that materially adversely affects (i) Borrower’s or such
Permitted Affiliate’s intended use of one or more of the Unencumbered Asset
Pool Properties (subject to Borrower’s right to remove any Unencumbered Asset
Pool Property from the Unencumbered Asset Pool pursuant to Section 4.1
(b)) or (ii) Borrower’s or any Permitted Affiliate’s ability to repay the
Loans; or 

               (j)     Borrower
or any Permitted Affiliate fails, after the expiration of applicable cure
periods, if any, to perform any material obligation under any other agreement Borrower
has with Administrative Agent or any Lender or any Affiliate of Administrative
Agent or any Lender; or 

               (k)     Borrower
or a Permitted Affiliate defaults (taking into account applicable cure periods,
if any) in connection with any credit such Person has with any holder of
Indebtedness of such Person which Indebtedness equals or exceeds $1,000,000; or

               (l)     There
is a material adverse change in Borrower’s financial condition, or an event or
condition that materially impairs Borrower’s or a Permitted Affiliate’s intended
use of one or more of the Unencumbered Asset Pool Properties (subject to
Borrower’s right to remove any Unencumbered Asset Pool Property from the
Unencumbered Asset Pool pursuant to Section 4.1 (b)) which materially impairs
Borrower’s ability to repay the Loan; or  

               (m)     Borrower
shall no longer qualify as a real estate investment trust under the provisions
of Code Sections 856 through 860; or 

               (n)     (i)
An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan
which has resulted or could reasonably be expected to result in liability of
Borrower under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the
PBGC in an aggregate amount in excess of $15,000,000, or (ii) Borrower or any
ERISA Affiliate fails to pay when due, after the expiration of any applicable
grace period, any installment payment with respect to its withdrawal liability
under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount
in excess of $15,000,000; or 

               (o)     Any
Loan Document, at any time after its execution and delivery and for any reason
other than as expressly permitted hereunder or satisfaction in full of all the
Obligations, ceases to be in full force and effect; or any of Borrower or a
Permitted Affiliate or a subsidiary of any of them contests in any manner the
validity or enforceability of the remedies of Administrative Agent, the L/C
Issuer or any Lender under any Loan Document; or a party to a 

66

Loan Document
(other than any Lender or Administrative Agent) denies that it has any further
liability or obligation under any Loan Document, or purports to revoke,
terminate or rescind any Loan Document. 

          8.2     Remedies.
If any Event of Default occurs, Administrative Agent shall, at the request of,
or may, with the consent of, the Required Lenders: 

                    8.2.1     Termination
of Commitment to Lend. Declare the Commitment of each Lender to make Loans
and the commitment of the L/C Issuer to issue Letters of Credit to be
terminated, whereupon such commitments shall forthwith be terminated; provided,
however, that Administrative Agent and the Lenders shall continue to honor any
outstanding Letter of Credit; and 

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

                    8.2.3     Security
for Letters of Credit. Require that Borrower deposit with Administrative
Agent, for the benefit of the Lenders, on demand and as cash security for
Borrower’s obligations under the Loan Documents, Cash Collateral in an amount
equal to the aggregate undrawn amount of all then outstanding Letters of Credit
(and Borrower hereby grants to Administrative Agent, as administrative agent
for the Lenders, a security interest in any such amount deposited with
Administrative Agent (and any amount deposited with Administrative Agent
pursuant to Section 2.8.2(a)), all earnings thereon and all proceeds
thereof, and as to such amounts Administrative Agent shall have the rights and
remedies of a secured party under the Pennsylvania Uniform Commercial Code); provided
that upon the occurrence of any event specified in Section 8.1(d) above
with respect to Borrower, such amounts shall automatically become due and
payable without further act of Administrative Agent or the Lenders; and 

                    8.2.4     Exercise
of Rights and Remedies. Exercise all rights and remedies available to it
under the Loan Documents or applicable Law; provided, however, that upon
the occurrence of any event specified in Section 8.1(d) above, the
obligation of each Lender to make Loans and the obligation of the L/C Issuer to
issue Letters of Credit shall automatically terminate, and the unpaid principal
amount of all outstanding Loans and all interest and other amounts as aforesaid
shall automatically become due and payable without further act of
Administrative Agent or any Lender. 

                    8.3     Application
of Funds. After the exercise of remedies provided for in Section 8.2
(or after the Loans have automatically become immediately due and payable and
the undrawn amount of outstanding Letters of Credit have automatically been
required to be Cash Collateralized as set forth in the proviso to Section
8.2.3), any amounts received on account of the Obligations shall be applied
by Administrative Agent in the following order: 

	
  

 	
  

 
	
  

 	
                      First,
 to payment of that portion of the Obligations constituting fees, indemnities,
 expenses and other amounts (including legal fees and expenses and amounts
 payable 

 

67

	
  

 	
  

 
	
  

 	
 under Sections 2.11, 6.2, and 10.4) payable to
 Administrative Agent in its capacity as such; 

 
	
  

 	
  

 
	
  

 	
           Second,
 to payment of that portion of the Obligations constituting fees, indemnities
 and other amounts (other than principal and interest) payable to the Lenders
 (including amounts payable under Sections 2.11, 3.1, 3.3, 3.4, 6.2,
 and 10.4), ratably among them in proportion to the amounts described
 in this clause Second are payable to them; 

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           Fifth,
 to Administrative Agent for the account of the L/C Issuer to Cash
 Collateralize the aggregate undrawn amount of Letters of Credit; and 

 
	
  

 	
  

 
	
  

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

 

          Subject to
Section 2.5.5, amounts used to Cash Collateralize the aggregate undrawn amount
of Letters of Credit pursuant to clause Fifth above shall be applied to
satisfy drawings under such Letters of Credit as they occur. If any amount
remains on deposit as Cash Collateral after all Letters of Credit have either
been fully drawn or expired, such remaining amount shall be applied to the
other Obligations, if any, in the order set forth above. 

9.       ADMINISTRATIVE
AGENT. 

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

          9.2     Rights
as a Lender. The Person serving as Administrative Agent hereunder shall
have the same rights and powers in its capacity as a Lender as any other Lender
and may exercise the same as though it were not Administrative Agent and the
term “Lender” or “Lenders” shall, unless otherwise expressly indicated or
unless the context otherwise requires, include the Person serving as
Administrative Agent hereunder in its individual capacity. Such Person and its
Affiliates may accept deposits from, lend money to, act as the financial
advisor or in any other advisory capacity for and generally engage in any kind
of business with Borrower or 

68

any subsidiary or other Affiliate thereof as if such Person were not
Administrative Agent hereunder and without any duty to account therefor to the
Lenders. 

          9.3     Exculpatory
Provisions. 

                    9.3.1     Limitation
of Administrative Agent’s Duties. Administrative Agent shall not have any
duties or obligations except those expressly set forth herein and in the other
Loan Documents. Without limiting the generality of the foregoing,
Administrative Agent: (a) shall not be subject to any fiduciary or other
implied duties, regardless of whether a Default or Event of Default has
occurred and is continuing; (b) shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby or by the other Loan Documents
that Administrative Agent is required to exercise as directed in writing by the
Required Lenders (or such other number or percentage of the Lenders as shall be
expressly provided for herein or in the other Loan Documents), provided
that Administrative Agent shall not be required to take any action that, in its
opinion or the opinion of its counsel, may expose Administrative Agent to
liability or that is contrary to any Loan Document or applicable law; and (c)
shall not, except as expressly set forth herein and in the other Loan
Documents, have any duty to disclose, and shall not be liable for the failure
to disclose, any information relating to Borrower or any of its Affiliates that
is communicated to or obtained by the Person serving as Administrative Agent or
any of its Affiliates in any capacity. 

                    9.3.2     Limitation
of Administrative Agent’s Liability. Administrative Agent shall not be
liable to any Lender for any action taken or not taken by it (i) with the
consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary, or as Administrative Agent
shall believe in good faith shall be necessary, under the circumstances as
provided in Sections 8.2 and 9.1), or (ii) in the absence of its
own gross negligence or willful misconduct. Administrative Agent shall be
deemed not to have knowledge of any Default or Event of Default unless and
until notice describing such Default or Event of Default is given to
Administrative Agent by Borrower, a Lender or the L/C Issuer. 

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

          9.4     Reliance
by Administrative Agent. Administrative Agent shall be entitled to rely
upon, and shall not incur any liability to any Lender or L/C Issuer for relying
upon, any notice, request, certificate, consent, statement, instrument,
document or other writing (including any electronic message, Internet or
intranet website posting or other distribution) believed by it to be genuine
and to have been signed, sent or otherwise authenticated by the proper Person;
provided, 

69

however, that notwithstanding any such notice, request or other
direction to the contrary, in all events Administrative Agent shall direct that
the proceeds of a Borrowing be deposited in the account of Borrower, as
determined by Borrower in its sole discretion, designated to Administrative
Agent on the Closing Date (the “Designated Borrower’s Account”). Subject
to the foregoing sentence, Administrative Agent also may rely upon any
statement made to it orally or by telephone and believed by it to have been
made by the proper Person, and shall not incur any liability for relying
thereon. In determining compliance with any condition hereunder to the making
of a Loan, or the issuance of a Letter of Credit, that by its terms must be
fulfilled to the satisfaction of a Lender or the L/C Issuer, Administrative
Agent may presume that such condition is satisfactory to such Lender or the L/C
Issuer unless Administrative Agent shall have received notice to the contrary
from such Lender or the L/C Issuer prior to the making of such Loan or the
issuance of such Letter of Credit. Administrative Agent may consult with legal
counsel (who may be counsel for Borrower), independent accountants and other
experts selected by it, and shall not be liable for any action taken or not
taken by it in accordance with the advice of any such counsel, accountants or
experts. 

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

          9.6     Resignation
of Administrative Agent. 

                    9.6.1     Notice
of Resignation. Administrative Agent may at any time give notice of its
resignation to the Lenders, the L/C Issuer and Borrower. Upon receipt of any
such notice of resignation, the Required Lenders shall have the right, in
consultation with Borrower, to appoint a successor, which shall be a bank with
an office in the United States, or an Affiliate of any such bank with an office
in the United States; provided that as long as no Event of Default
hereunder has occurred and is continuing, Borrower shall have the right to
consent to such successor, such consent to not be unreasonably withheld. If no
such successor shall have been so appointed by the Required Lenders and shall
have accepted such appointment within 30 days after the retiring Administrative
Agent gives notice of its resignation, then the retiring Administrative Agent
may on behalf of the Lenders and the L/C Issuer, appoint a successor
Administrative Agent meeting the qualifications set forth above, provided
that as long as no Event of Default hereunder has occurred and is continuing,
Borrower shall have the right to consent to such successor, such consent to not
be unreasonably withheld; provided further that if Administrative Agent
shall notify Borrower and the Lenders that no qualifying Person has accepted
such appointment, then such resignation shall nonetheless become effective in
accordance with such notice and (1) the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder and under the other Loan
Documents and (2) all payments, communications and determinations provided to
be made by, to or through Administrative Agent shall instead be made by or to
each Lender and the L/C Issuer directly, until such time as the Required
Lenders appoint a successor Administrative Agent as provided for above in this 

70

Section. Upon the acceptance of a successor’s appointment as
Administrative Agent hereunder, such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring
(or retired) Administrative Agent, and the retiring Administrative Agent shall
be discharged from all of its duties and obligations hereunder or under the
other Loan Documents (if not already discharged therefrom as provided above in
this Section). The fees payable by Borrower to a successor Administrative Agent
shall be the same as those payable to its predecessor unless otherwise agreed
in writing between Borrower and such successor. After the retiring
Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Article and Section 10.4 shall
continue in effect for the benefit of such retiring Administrative Agent, its
sub-agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while the retiring Administrative Agent
was acting as Administrative Agent. 

                    9.6.2     Resignation
by PNC Bank. Any resignation by PNC Bank as Administrative Agent pursuant
to this Section shall also constitute its resignation as L/C Issuer. Upon the
acceptance of a successor’s appointment as Administrative Agent hereunder, (a)
such successor shall succeed to and become vested with all of the rights,
powers, privileges and duties of the retiring L/C Issuer, (b) the retiring L/C
Issuer shall be discharged from all of its respective duties and obligations
hereunder or under the other Loan Documents, and (c) the successor L/C Issuer
shall issue letters of credit in substitution for the Letters of Credit, if
any, outstanding at the time of such succession or make other arrangements
satisfactory to the retiring L/C Issuer to effectively assume the obligations
of the retiring L/C Issuer with respect to such Letters of Credit. 

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

          9.8     No
Duties, Etc. The Arranger assumes no responsibility or obligation
hereunder, including, without limitation, for servicing, enforcement or
collection of any of the Loans, nor any duties as an agent for the Lenders. The
titles “Sole Lead Arranger” and “Sole Book Manager” are solely honorific and
imply no fiduciary or other responsibility on the part of the Arranger to the
Administrative Agent, any Loan Party or any Lender and the use of such titles
does not impose on the Arranger any duties or obligations or entitle the
Arranger to any rights hereunder except as specifically herein provided. 

          9.9     Administrative
Agent May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement,
adjustment, composition or other judicial proceeding relative to Borrower or
any Permitted Affiliate, Administrative Agent (irrespective of whether the
principal of any Loan or L/C Obligation shall 

71

then be due and payable as herein expressed or by declaration or
otherwise and irrespective of whether Administrative Agent shall have made any
demand on Borrower) shall be entitled and empowered, by intervention in such
proceeding or otherwise (a) to file and prove a claim for the whole amount of
the principal and interest owing and unpaid in respect of the Loans, L/C
Obligations and all other Obligations that are owing and unpaid and to file
such other documents as may be necessary or advisable in order to have the
claims of the Lenders, the L/C Issuer and Administrative Agent (including any
claim for the reasonable compensation, expenses, disbursements and advances of
the Lenders, the L/C Issuer and Administrative Agent and their respective
agents and counsel and all other amounts due the Lenders, the L/C Issuer and
Administrative Agent under Sections 2.11, 6.2 and 10.4) allowed
in such judicial proceeding; and (b) to collect and receive any monies or other
property payable or deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Lender and the L/C Issuer to make such payments to Administrative Agent
and, in the event that Administrative Agent shall consent to the making of such
payments directly to the Lenders and the L/C Issuer, to pay to Administrative
Agent any amount due for the reasonable compensation, expenses, disbursements
and advances of Administrative Agent and its agents and counsel, and any other
amounts due Administrative Agent under Sections 2.11, 6.2 and 10.4.
Nothing contained herein shall be deemed to authorize Administrative Agent to
authorize or consent to or accept or adopt on behalf of any Lender or the L/C
Issuer any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations or the rights of any Lender or to authorize
Administrative Agent to vote in respect of the claim of any Lender in any such
proceeding. 

          9.10     Release
of Permitted Affiliate from Payment Guaranty. The Lenders irrevocably
authorize Administrative Agent, at its option and in its discretion and without
the consent of any Lender, to release any Permitted Affiliate from its
obligations under its Payment Guaranty if such Person ceases to be an owner of
an Unencumbered Asset Pool Property as a result of a transaction permitted
hereunder. Upon request by Administrative Agent at any time, the Required
Lenders will confirm in writing Administrative Agent’s authority to release any
Permitted Affiliate from its obligations under its Payment Guaranty pursuant to
this Section 9.10.  

10.          MISCELLANEOUS
PROVISIONS. 

          10.1     Amendments
and Waivers. No amendment or waiver of any provision of this Agreement or
any other Loan Document, and no consent with respect to any departure by
Borrower or any Permitted Affiliate therefrom, shall be effective unless the
same shall be in writing and signed by the Required Lenders (or by
Administrative Agent at the written request of the Required Lenders) and, in
the case of an amendment, by Borrower or, if required, a Permitted Affiliate,
and acknowledged by Administrative Agent, and then any such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given; provided, however, that no such waiver, amendment or consent
shall:  

                    (a)     waive
any condition set forth in Section 5.1 without the written consent of
each Lender; 

72

               (b)     increase
the aggregate Commitment or increase the Commitment of any Lender without the
written consent of such Lender; 

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

               (d)     reduce
the rate of interest or any fees or other amounts payable in connection with
the Loans or L/C Borrowings except as expressly provided in this Agreement
without the written consent of each Lender directly affected thereby; provided, however, that only the consent of the Required Lenders shall be necessary (i)
to amend the definition of “Default Rate” or to waive any obligation of
Borrower to pay interest or Letter of Credit Fees at the Default Rate, or (ii)
to amend any financial covenant hereunder (or any defined term used therein)
even if the effect of such amendment would be to reduce the rate of interest on
any Loan or L/C Borrowing or to reduce any fee payable hereunder;  

               (e)     change Section 2.16 or Section 8.3 in a manner that would alter the pro rata sharing
of payments required thereby without the written consent of each Lender;  

               (f)     change
the voting percentage of the Commitments or of the aggregate unpaid principal
amount of the Loans that is required for the Lenders, or any of them, to take
any action hereunder (e.g., the provisions of this Section 10.1 or the
definition of the term “Required Lenders”), without the written consent of each
Lender;  

               (g)     amend
this or any provision requiring consent of all Lenders for action by the Lenders
or Administrative Agent, without the written consent of each Lender; or 

               (h)     discharge
Borrower or any Permitted Affiliate, or release all or substantially all of the
collateral securing the Obligations, if any, without the written consent of
each Lender, except as otherwise may be provided in the Loan Documents
(including Section 9.10 hereof, which permits the release of a Permitted
Affiliate without the consent of the Lenders under the terms and conditions set
forth therein), or except where only the consent of the Required Lenders is
expressly required by any Loan Document; 

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

73

          10.2     Notices;
Effectiveness; Electronic Communication. 

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

                    (i)      if to Borrower, Administrative Agent or the
L/C Issuer to the address, facsimile number, electronic mail address or
telephone number specified for such Person on Schedule 1.2; and 

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

In addition to the foregoing, all information, documents and deliveries
required to be provided under Section 6.03 hereof shall be simultaneously
submitted by one of the following four (4) methods (and Borrower’s name shall
be included on all such correspondence): 

	
  

 	
  

 
	
 Email:

 	
 financials@pncbank.com

 
	
  

 	
  

 
	
 Facsimile:

 	
 (913)
 253-9813

 
	
  

 	
  

 
	
 Regular
 Mail:

 	
 PNC Bank,
 N.A.
Attention: Credit Administration
 
P.O. Box 25964
Shawnee Mission, KS 66225-5964

 
	
  

 	
  

 
	
 Overnight
 Mail:

 	
 PNC Bank, N.A.
Attention: Credit Administration
10851 Mastin, Suite 300
Overland Park, KS 66210
(913) 253-9000

 

Notices sent by hand or overnight courier service, or mailed by
certified or registered mail, shall be deemed to have been given when received;
notices sent by facsimile shall be deemed to have been given when sent (except
that if not given during normal business hours for the recipient, shall be
deemed to have been given at the opening of business on the next business day
for the recipient). Notices delivered through electronic communications to the
extent provided in Section 10.2(b) below, shall be effective as provided
in such Section 10.2(b). 

               (b)     Electronic
Communications. (i) Notices and other communications to the Lenders and the
L/C Issuer hereunder may be delivered or furnished by electronic communication
(including e-mail and Internet or intranet websites) pursuant to procedures
approved by Administrative Agent, provided that the foregoing shall not
apply to notices to any Lender or the L/C Issuer pursuant to Article 2
if such Lender or the L/C Issuer, as applicable, has 

74

notified Administrative Agent that it is incapable of receiving notices
under such Article by electronic communication. Administrative Agent or
Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may
be limited to particular notices or communications, and (ii) unless
Administrative Agent otherwise prescribes, (y) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of
an acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written
acknowledgement), provided that if such notice or other communication is not
sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on
the next business day for the recipient, and (z) notices or communications
posted to an Internet or intranet website shall be deemed received upon the
deemed receipt by the intended recipient at its e-mail address as described in
the foregoing clause (y) of notification that such notice or communication is
available and identifying the website address therefor.  

               (c)     The
Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE
BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM
LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS. NO WARRANTY
OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD
PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY
AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM. In no event
shall Administrative Agent or any of its Related Parties (collectively, the
“Agent Parties”) have any liability to Borrower, any Lender, the L/C Issuer or
any other Person for losses, claims, damages, liabilities or expenses of any
kind (whether in tort, contract or otherwise) arising out of Borrower’s or
Administrative Agent’s transmission of the Borrower Materials through the
Internet, except to the extent that such losses, claims, damages, liabilities
or expenses are determined by a court of competent jurisdiction by a final and
nonappealable judgment to have resulted from the gross negligence or willful
misconduct of such Agent Party; provided, however, that in no event shall any
Agent Party have any liability to Borrower, any Lender, the L/C Issuer or any
other Person for indirect, special, incidental, consequential or punitive
damages (as opposed to direct or actual damages).  

               (d)     Change
of Address, Etc. Each of Borrower, Administrative Agent and the L/C Issuer
may change its address, facsimile or telephone number for notices and other
communications hereunder by notice to the other parties hereto. Each other
Lender may change its address, facsimile or telephone number for notices and
other communications hereunder by notice to Borrower, Administrative Agent and
the L/C Issuer. In addition, each Lender agrees to notify Administrative Agent
from time to time to ensure that Administrative Agent has on record (i) an
effective address, contact name, telephone number, facsimile number and
electronic mail address to which notices and other communications may be sent
and (ii) accurate wire instructions for such Lender. 

75

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

               (f)     Communication
with Lenders. All communications from Administrative Agent to the Lenders
requesting the Lenders’ determination, consent, approval or disapproval (a)
shall be given in the form of a written notice to each Lender, (b) shall be
accompanied by a description of the matter or time as to which such
determination, approval, consent or disapproval is requested, or shall advise
each Lender where such matter or item may be inspected, or shall otherwise
describe the matter or issue to be resolved, and (c) shall include
Administrative Agent’s recommended course of action or determination in respect
thereof. Each Lender shall reply promptly, but in any event within ten (10)
Business Days after receipt of the request from Administrative Agent (the “Lender
Reply Period”). Unless a Lender shall give written notice to Administrative
Agent that it objects to the recommendation or determination of Administrative
Agent (together with a written explanation of the reasons behind such
objection) within the Lender Reply Period, such Lender shall be deemed to have
approved of or consented to such recommendation or determination. With respect
to decisions requiring the approval of the Required Lenders or all the Lenders,
Administrative Agent shall submit its recommendation or determination for
approval of or consent to such recommendation or determination to all Lenders
and upon receiving the required approval or consent shall follow the course of
action or determination of the Required Lenders (and each nonresponding Lender
shall be deemed to have concurred with such recommended course of action) or
all the Lenders, as the case may be. 

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

          10.4     Costs
and Expenses; Indemnity; Waiver of Consequential Damages, Etc. 

                      (a)     Costs
and Expenses. Borrower shall pay (i) all reasonable out-of-pocket expenses
incurred by Administrative Agent and its Affiliates (including the reasonable
fees, charges and disbursements of counsel for Administrative Agent), in
connection with the syndication of the credit facilities provided for herein,
the preparation, negotiation, execution and 

76

delivery of this Agreement and the other Loan Documents or any
amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), and (ii) all reasonable out-of-pocket expenses incurred by
Administrative Agent, any Lender or the L/C Issuer (including the fees, charges
and disbursements of any counsel for Administrative Agent, any Lender or the
L/C Issuer), and shall pay all fees and time charges for attorneys who may be
employees of Administrative Agent, any Lender or the L/C Issuer, in connection
with the enforcement or protection of its rights (A) in connection with this
Agreement and the other Loan Documents, including its rights under this
Section, or (B) in connection with the Loans made or Letters of Credit issued
hereunder, including all such out-of-pocket expenses incurred during any
workout, restructuring or negotiations in respect of such Loans or Letters of
Credit. 

                      (b)     Indemnification
by Borrower. Borrower shall indemnify Administrative Agent (and any
sub-agent thereof), each Lender and the L/C Issuer, and each Related Party of
any of the foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses (including the fees, charges and
disbursements of any counsel for any Indemnitee), and shall indemnify and hold
harmless each Indemnitee from all fees and time charges and disbursements for
attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or
asserted against any Indemnitee by any third party or by Borrower or any
Permitted Affiliate arising out of, in connection with, or as a result of (i)
the execution or delivery of this Agreement, any other Loan Document or any
agreement or instrument contemplated hereby or thereby, the performance by the
parties hereto of their respective obligations hereunder or thereunder, the
consummation of the transactions contemplated hereby or thereby, or, in the case
of Administrative Agent (and any sub-agent thereof) and its Related Parties
only, the administration of this Agreement and the other Loan Documents, (ii)
any Loan or Letter of Credit or the use or proposed use of the proceeds
therefrom (including any refusal by the L/C Issuer to honor a demand for
payment under a Letter of Credit if the documents presented in connection with
such demand do not strictly comply with the terms of such Letter of Credit),
(iii) any actual or alleged presence or release of Hazardous Substances on or
from any property owned or operated by Borrower or any of its subsidiaries, or
any liability under any Environmental Laws related in any way to Borrower or
any of its subsidiaries, or (iv) any actual or prospective claim, litigation, investigation
or proceeding relating to any of the foregoing, whether based on contract, tort
or any other theory, whether brought by a third party or by Borrower or any
Permitted Affiliate, and regardless of whether any Indemnitee is a party
thereto; provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or
related expenses (x) are determined by a court of competent jurisdiction by
final and nonappealable judgment to have resulted from the gross negligence or
willful misconduct of such Indemnitee or (y) result from a claim brought by
Borrower or any Permitted Affiliate against an Indemnitee for breach in bad
faith of such Indemnitee’s obligations hereunder or under any other Loan
Document, if Borrower or such Permitted Affiliate has obtained a final and
nonappealable judgment in its favor on such claim as determined by a court of
competent jurisdiction.  

                      (c)     Reimbursement
by Lenders. To the extent that Borrower for any reason fails to
indefeasibly pay any amount required under Sections 10.4(a) or (b)
to be paid by it to Administrative Agent (or any sub-agent thereof), the L/C
Issuer or any Related Party of any of 

77

the foregoing, each Lender severally agrees to pay to Administrative
Agent (or any such subagent), the L/C Issuer or such Related Party, as the case
may be, such Lender’s Pro Rata Share (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount, provided that the unreimbursed expense or indemnified loss,
claim, damage, liability or related expense, as the case may be, was incurred
by or asserted against Administrative Agent (or any such sub-agent) or the L/C
Issuer in its capacity as such, or against any Related Party of any of the
foregoing acting for Administrative Agent (or any such sub-agent) or L/C Issuer
in connection with such capacity. The obligations of the Lenders under this Section
10.4(c) are subject to the provisions of Section 2.14.2. 

                      (d)     Payments.
All amounts due under this Section shall be payable not later than fifteen (15)
days after demand therefor. 

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

          10.5     Successors
and Assigns. 

                      (a)     Successors
and Assigns Generally. The provisions of this Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that Borrower may not assign or
otherwise transfer any of its rights or obligations hereunder without the prior
written consent of Administrative Agent and each Lender and no Lender may
assign or otherwise transfer any of its rights or obligations hereunder except
(i) to an Eligible Assignee in accordance with the provisions of Section
10.5(b), (ii) by way of participation in accordance with the provisions of Section
10.5(d), or (iii) by way of pledge or assignment of a security interest
subject to the restrictions of Section 10.5(f). Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in Section 10.5(d)
and, to the extent expressly contemplated hereby, the Related Parties of each
of Administrative Agent, the L/C Issuer and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement. 

                      (b)     Assignment
by Lenders. Any Lender may at any time assign to one or more Eligible
Assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans (including for
purposes of this clause (a), participations in L/C Obligations) at the time
owing to it; provided that (i) except in the case of an assignment of
the entire remaining amount of the assigning Lender’s Commitment and the Loans
at the time owing to it or in the case of an assignment to a Lender or an
Affiliate of a Lender or an Approved Fund with respect to a Lender, the
aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) subject to each such assignment, determined as of the
date the Assignment and Assumption with respect to such assignment is delivered
to Administrative Agent or, if “Trade Date” is specified in the Assignment and
Assumption, as of the Trade Date, shall not be less than $5,000,000 unless each
of Administrative Agent and, so long as no Event of Default has occurred and is
continuing, Borrower otherwise consents (each such consent not to be
unreasonably withheld or delayed), provided that concurrent assignments to
members of an Assignee Group and concurrent  

78

assignments from members of an Assignee Group to a single Eligible
Assignee (or to an Eligible Assignee and members of its Assignee Group) will be
treated as a single assignment for purposes of determining whether such minimum
amount has been met; (ii) each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement with respect to the Loans or the Commitment
assigned; (iii) any assignment of a Commitment must be approved by
Administrative Agent and the L/C Issuer (which consent will not be unreasonably
withheld or delayed) unless the Person that is the proposed assignee is itself
a Lender (whether or not the proposed assignee would otherwise qualify as an
Eligible Assignee); and (iv) the parties to each assignment shall execute and
deliver to Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee in the amount, if any, required as set forth in
Schedule 1.4, and the Eligible Assignee, if it shall not be a Lender, shall
deliver to Administrative Agent an Administrative Questionnaire. Subject to
acceptance and recording thereof by Administrative Agent pursuant to clause (b)
of this Section, from and after the effective date specified in each Assignment
and Assumption, the Eligible Assignee thereunder shall be a party to this
Agreement and, to the extent of the interest assigned by such Assignment and
Assumption, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest assigned
by such Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 3.1, 3.3, 3.4, and 10.4 with respect
to facts and circumstances occurring prior to the effective date of such
assignment). Upon request, Borrower (at its expense) shall execute and deliver
a Revolving Note to the assignee Lender and, in such event, the assigning
Lender shall return the original Revolving Note for cancellation and, if the
assignment is for a portion of the assigning Lender’s Commitment, replacement
by a new Revolving Note issued by Borrower and evidencing the assigning
Lender’s reduced Commitment. Any assignment or transfer by a Lender of rights
or obligations under this Agreement that does not comply with this Section
shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with clause (d) of
this Section. Notwithstanding the foregoing, assignment of the obligations of
the L/C Issuer after the resignation of PNC Bank as L/C Issuer, or any other
successor thereafter acting as L/C Issuer, shall be governed by Section
10.5(h) hereof.  

                    (c)     Register.
Administrative Agent, acting solely for this purpose as an agent of Borrower,
shall maintain at Administrative Agent’s Office a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitments of, and principal amounts of the
Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof
from time to time (the “Register”). The entries in the Register shall be
conclusive, and Borrower, Administrative Agent and the Lenders may treat each
Person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for all purposes of this Agreement, notwithstanding notice to
the contrary. The Register shall be available for inspection by each of
Borrower and the L/C Issuer at any reasonable time and from time to time upon
reasonable prior notice. In addition, at any time that a request for a consent
for a material or substantive change to the Loan Documents is pending, any
Lender may request and receive from Administrative Agent a copy of the
Register. 

79

                    (d)          Participations.
Any Lender may at any time, without the consent of, or notice to, Borrower or
Administrative Agent, sell participations to any Person (other than a natural
person or Borrower or any of Borrower’s Affiliates or subsidiaries) (each, a “Participant”)
in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans
(including such Lender’s participations in L/C Obligations) owing to it); provided
that (i) such Lender’s obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto
for the performance of such obligations and (iii) Borrower, each Permitted
Affiliate, Administrative Agent and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights
and obligations under this Agreement. Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall
retain the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that
such agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, waiver or other
modification described in clauses (a)-(g) of Section 10.1 that
directly affects such Participant. Subject to clause (e) of this Section,
Borrower agrees that each Participant shall be entitled to the benefits of Sections
3.1, 3.3, 3.4, and 10.4 to the same extent as if it
were a Lender and had acquired its interest by assignment pursuant to clause
(b) of this Section.

                    (e)          Limitations
on Participant Rights. A Participant shall not be entitled to receive any
greater payment under Section 3.1 or 3.3 than the applicable
Lender would have been entitled to receive with respect to the participation
sold to such Participant. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 3.1
unless Borrower is notified of the participation sold to such Participant and
such Participant agrees, for the benefit of Borrower, to comply with Sections
3.1.5 and 3.3.3 as though it were a Lender.

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

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

                    (h)          Resignation
as L/C Issuer after Assignment. Notwithstanding anything to the contrary
contained herein, if at any time PNC Bank assigns all of its Commitment and
Loans pursuant to clause (a) above, PNC Bank may, upon 30 days’ notice to
Borrower and the Lenders, 

80

resign as L/C Issuer. In the event of any such resignation as L/C
Issuer, Borrower shall be entitled to appoint from among the Lenders a
successor L/C Issuer hereunder and, if such designated appointee agrees to act
as successor L/C Issuer hereunder, Lenders hereby agree to accept such
appointment; provided, however, that no failure by Borrower to
appoint any such successor shall affect the resignation of PNC Bank as L/C
Issuer. In addition, if PNC Bank fails to issue a Letter of Credit under Section
2.1.2(b) hereof because the issuance of such Letter of Credit would violate
any of its policies. PNC Bank will, upon the request of Borrower, resign as L/C
Issuer hereunder and Borrower shall be entitled to appoint from among the
Lenders a successor L/C Issuer hereunder and, if such designated appointee
agrees to act as successor L/C Issuer hereunder, Lenders hereby agree to accept
such appointment; provided, however, that no failure by Borrower
to appoint any such successor shall affect the resignation of PNC Bank as L/C
Issuer. If PNC Bank resigns as L/C Issuer, it shall retain all the rights and
obligations of the L/C Issuer hereunder with respect to all Letters of Credit
outstanding as of the effective date of its resignation as L/C Issuer and all
L/C Obligations with respect thereto (including the right to require the
Lenders to make Reference Rate Loans or fund risk participations in
Unreimbursed Amounts pursuant to Section 2.5.1). Upon the appointment of
a successor L/C Issuer, (a) such successor shall succeed to and become vested
with all of the rights, powers, privileges and duties of the retiring L/C
Issuer, and (b) the successor L/C Issuer shall issue letters of credit in
substitution for the Letters of Credit, if any, outstanding at the time of such
succession or make other arrangements satisfactory to PNC Bank to effectively
assume the obligations of PNC Bank with respect to such Letters of Credit.

          10.6          Confidentiality.
Each of Administrative Agent, the Lenders and the L/C Issuer agrees to maintain
the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its Affiliates and to its and its
Affiliates’ respective partners, directors, officers, employees, agents,
advisors and representatives (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to the
extent requested by any regulatory authority purporting to have jurisdiction
over it (including any self-regulatory authority, such as the National
Association of Insurance Commissioners), (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (d)
to any other party hereto, (e) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any action or proceeding relating
to this Agreement or any other Loan Document or the enforcement of rights
hereunder or thereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or
Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this Agreement or (ii) any actual or prospective
counterparty (or its advisors) to any swap or derivative transaction relating
to Borrower and its obligations, (g) with the consent of Borrower or (h) to the
extent such Information (x) becomes publicly available other than as a result
of a breach of this Section or (y) becomes available to Administrative Agent,
any Lender, the L/C Issuer or any of their respective Affiliates on a
nonconfidential basis from a source other than Borrower.

          For
purposes of this Section, “Information” means all information received
from Borrower or any subsidiary thereof relating to Borrower or any subsidiary
thereof or any of their respective businesses, other than any such information
that is available to Administrative Agent, any Lender or the L/C Issuer on a
nonconfidential basis prior to disclosure by Borrower or any 

81

subsidiary thereof, provided that, in the case of information
received from Borrower or any subsidiary thereof after the date hereof, such
information is clearly identified at the time of delivery as confidential. Any
Person required to maintain the confidentiality of Information as provided in
this Section shall be considered to have complied with its obligation to do so
if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.

          Each of
Administrative Agent, the Lenders and the L/C Issuer acknowledges that (a) the
Information may include material non-public information concerning Borrower or
a subsidiary thereof, as the case may be, (b) it has developed compliance
procedures regarding the use of material non-public information and (c) it will
handle such material non-public information in accordance with applicable Law,
including Federal and state securities Laws.

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

          10.8          No
Third Parties Benefited. This Agreement is made and entered into for the
sole protection and benefit of the parties signing this Agreement and their
successors and assigns. No trust is created by this Agreement and no other
persons or entities shall have any right of action under this Agreement or any
right to the Loan funds.

          10.9          Payments
Set Aside. To the extent that any payment by or on behalf of Borrower or
any Permitted Affiliate is made to Administrative Agent, the L/C Issuer or any
Lender, or Administrative Agent, the L/C Issuer or any Lender exercises its
right of setoff, and such payment or the proceeds of such setoff or any part
thereof is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required (including pursuant to any settlement entered into by
Administrative Agent, the L/C Issuer or such Lender in its discretion) to be
repaid to a trustee, receiver or any other party, in connection with any
Insolvency Proceeding or otherwise, then (a) to the extent of such recovery,
the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been
made or such setoff had not occurred, and (b) each Lender and the L/C Issuer
severally agrees to pay to Administrative Agent upon demand its applicable
share (without duplication) of any amount so recovered from or repaid by
Administrative Agent, plus interest 

82

thereon from the date of such demand to the date such payment is made
at a rate per annum equal to the Federal Funds Rate from time to time in
effect. The obligations of the Lenders and the L/C Issuer under clause (b) of
the preceding sentence shall survive the payment in full of the Obligations and
the termination of this Agreement.

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

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

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

          10.13          Replacement
of Lenders. If any Lender requests compensation under Section 3.4,
or if Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 3.1
or Section 3.3, or if any Lender is a Defaulting Lender, then Borrower
may, at its sole expense and effort, upon notice to such Lender and
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in, and
consents required by, Section 10.5), all of its interests, rights and
obligations under this Agreement and the related Loan Documents to an assignee
that shall assume such obligations (which assignee may be another Lender, if a
Lender accepts such assignment), provided that:

83

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

                    (b)          such
Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and L/C Advances, accrued interest thereon, accrued fees
and all other amounts payable to it hereunder and under the other Loan
Documents (including any amounts under Section 3.4) from the assignee
(to the extent of such outstanding principal and accrued interest and fees) or
Borrower (in the case of all other amounts);

                    (c)          in
the case of any such assignment resulting from a claim for compensation under Section
3.3 or payments required to be made pursuant to Section 3.1, such
assignment will result in a reduction in such compensation or payments
thereafter; 

                    (d)          such
assignment does not conflict with applicable Laws; and 

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

          10.14 Governing
Law; Jurisdiction; Etc.

                    (a)          GOVERNING
LAW. THIS AGREEMENT IS TO BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE INTERNAL LAWS OF THE COMMONWEALTH OF PENNSYLVANIA WITHOUT GIVING EFFECT TO
ANY CHOICE OF LAW RULE THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY
JURISDICTION OTHER THAN THE INTERNAL LAWS OF THE COMMONWEALTH OF PENNSYLVANIA
TO THE RIGHTS AND DUTIES OF THE PARTIES.

                    (b)          SUBMISSION
TO JURISDICTION. BORROWER AND ADMINISTRATIVE AGENT EACH IRREVOCABLY AND
UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION
OF THE COURTS OF THE COMMONWEALTH OF PENNSYLVANIA SITTING IN PITTSBURGH,
PENNSYLVANIA AND OF THE UNITED STATES DISTRICT COURT OF THE WESTERN DISTRICT OF
PENNSYLVANIA, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE
PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN
RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH
PENNSYLVANIA STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT
IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN
OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY
LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY
RIGHT THAT ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE
HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS 

84

AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST BORROWER OR ITS PROPERTIES
IN THE COURTS OF ANY JURISDICTION WHERE BORROWER OR ITS PROPERTIES ARE LOCATED.

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

                    (d)          SERVICE
OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN
THE MANNER PROVIDED FOR NOTICES IN SECTION 10.2(a). NOTHING IN THIS
AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY APPLICABLE LAW.

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

          10.16 USA
PATRIOT Act Notice. Each Lender that is subject to the Act (as hereinafter
defined) and Administrative Agent (for itself and not on behalf of any Lender)
hereby notifies 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 “Act”),
it is required to obtain, verify and record information that identifies
Borrower, which information includes the name and address of Borrower and other
information that will allow such Lender or Administrative Agent, as applicable,
to identify Borrower in accordance with the Act.

          10.17 Time
of the Essence. Time is of the essence of the Loan Documents.

85

          10.18 No
Fiduciary Relationship. In connection with all aspects of each transaction
contemplated by the Loan Documents, Borrower and each Permitted Affiliate
acknowledges and agrees that: (i) the Loan Documents and any related arranging
or other services described in any of the Loan Documents (or in any commitment
letter by PNC Bank, the Arranger or any affiliate thereof) is an arm’s-length
commercial transaction between Borrower and its affiliates, on the one hand,
and the Arranger, on the other hand, and Borrower, each Permitted Affiliate and
their respective affiliates are capable of evaluating and understanding and
understand and accept the terms, risks and conditions of the transactions
contemplated by the Loan Documents; (ii) in connection with the process leading
to such transaction, PNC Bank and the Arranger each is and has been acting
solely as a principal and is not the financial advisor, agent or fiduciary, for
Borrower, any Permitted Affiliate or any of their respective affiliates,
stockholders, creditors or employees or any other party; (iii) neither PNC Bank
nor the Arranger has assumed or will assume an advisory, agency or fiduciary
responsibility in Borrower’s, any Permitted Affiliate’s or any of their
respective affiliates’ favor with respect to any of the transactions
contemplated by the Loan Documents or the process leading thereto (irrespective
of whether PNC Bank or the Arranger has advised or is currently advising any
such Person or its affiliates on other matters) and neither PNC Bank nor the
Arranger has any obligation to Borrower, any Permitted Affiliate or any of
their respective affiliates with respect to the transactions contemplated by
the Loan Documents except those obligations expressly set forth herein and
therein; (iv) PNC Bank and the Arranger and their respective affiliates may be
engaged in a broad range of transactions that involve interests that differ
from those of Borrower, the Permitted Affiliates and their respective
affiliates and PNC Bank and the Arranger have no obligation to disclose any of
such interests by virtue of any advisory, agency or fiduciary relationship; and
(v) PNC Bank and the Arranger have not provided any legal, accounting,
regulatory or tax advice with respect to any of the transactions contemplated
by the Loan Documents and Borrower, any Permitted Affiliate and their
respective affiliates have consulted their own legal, accounting, regulatory
and tax advisors to the extent they have deemed appropriate. Borrower and each
Permitted Affiliate hereby waive and release, to the fullest extent permitted
by law, any claims that it may have against PNC Bank and the Arranger with
respect to any breach or alleged breach of agency or fiduciary duty relating to
the transactions contemplated by the Loan Documents.

 [Remainder of page intentionally left blank]

86

          IN WITNESS
WHEREOF, Borrower and the other parties hereto have executed this Agreement as
of the date first above written.

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 AMREIT, INC.,

 
	
  

 	
 a Maryland
 corporation

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Chad C. Braun

 
	
  

 	
 Name:

 	
  

 	
 Chad C.
 Braun

 
	
  

 	
 Title:

 	
  

 	
 Vice
 President

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Address:

 	
 8 Greenway
 Plaza, Suite 1000

 
	
  

 	
  

 	
  

 	
 Houston, TX
 77046

 

[Signatures Continue on the Next Page]

 [Signature
Page to Credit Agreement]

S-1

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 PNC BANK,
 NATIONAL ASSOCIATION,

 
	
  

 	
 as
 Administrative Agent

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Michael J. Catalano

 
	
  

 	
  

 	
 Michael J. Catalano, Vice President

 

[Signatures Continue on the Next Page]

 [Signature Page to Credit Agreement]

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 PNC BANK, NATIONAL ASSOCIATION,

 
	
  

 	
 as L/C
 Issuer and Lender

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Michael J. Catalano

 
	
  

 	
  

 	
 Michael J. Catalano, Vice President

 

[Signatures Continue on the Next
Page]

 [Signature Page to Credit Agreement]

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 US BANK, NATIONAL ASSOCIATION,

 
	
  

 	
 as Lender

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ John Kuykendall

 
	
  

 	
  

 	
 Name: John Kuykendall

 
	
  

 	
  

 	
 Title:   Senior Vice President

 

[Signatures Continue on the Next
Page]

 [Signature Page to Credit Agreement]

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CAPITAL ONE, NATIONAL ASSOCIATION,

 
	
  

 	
 as Lender

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Frederick H. Denecke

 
	
  

 	
  

 	
 Name: Frederick H. Denecke

 
	
  

 	
  

 	
 Title: Vice President

 

[Signatures Continue on the Next
Page]

 [Signature Page to Credit Agreement]

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 AMEGY BANK,

 
	
  

 	
 as Lender

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Devin R. Hancock

 
	
  

 	
  

 	
 Name: Devin R. Hancock

 
	
  

 	
  

 	
 Title:   Vice President

 

[Signatures Continue on the Next
Page]

 [Signature Page to Credit Agreement]

CONSENT OF PERMITTED AFFILIATES

          Reference
is made to that certain Revolving Credit Agreement dated as of August 3, 2012
(the “Credit Agreement”).

          Each of the
undersigned, as “Permitted Affiliates” under the Credit Agreement, (a)
acknowledges and consents to the Credit Agreement, (b) makes the
representations set forth in Article 7 of the Credit Agreement that
apply to such Permitted Affiliate, and (c) agrees to be bound by the covenants
of Articles 6 and 10 of the Credit Agreement that apply to such
Permitted Affiliate.

Dated as of August 3, 2012

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 PERMITTED AFFILIATES:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 410 Blanco,
 LP, a Texas limited partnership

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 410 Blanco
 GP, LLC, a Texas limited liability

 
	
  

 	
  

 	
 company, its
 general partner

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 AmREIT Inc.,
 a Maryland corporation, its

 
	
  

 	
  

 	
  

 	
 sole member

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 By:

 	
  

 	
 /s/ Chad C.
 Braun

 
	
  

 	
  

 	
  

 	
 Name:

 	
 Chad C.
 Braun

 
	
  

 	
  

 	
  

 	
 Title:

 	
 Executive
 Vice President

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 5115 Buffalo
 Speedway, LP, a Texas limited partnership

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 AmREIT SPE
 5, LLC, a Texas limited liability

 
	
  

 	
  

 	
 company, its
 general partner

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 AmREIT Inc.,
 a Maryland corporation, its

 
	
  

 	
  

 	
  

 	
 sole member

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 By:

 	
  

 	
 /s/ Chad C.
 Braun

 
	
  

 	
  

 	
  

 	
 Name:

 	
 Chad C.
 Braun

 
	
  

 	
  

 	
  

 	
 Title:

 	
 Executive
 Vice President

 

[Signatures Continue on the Next
Page]

 [Consent of Permitted Affiliates]

S-1

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 AmREIT 5402
 Westheimer, LP, a Texas limited

 
	
  

 	
 partnership

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 AmREIT 5402
 Westheimer GP, LLC, a Texas

 
	
  

 	
  

 	
 limited
 liability company, its general partner

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 AmREIT Inc.,
 a Maryland corporation, its

 
	
  

 	
  

 	
  

 	
 sole member

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 By:

 	
  

 	
 /s/ Chad C.
 Braun

 
	
  

 	
  

 	
  

 	
 Name:

 	
 Chad C.
 Braun

 
	
  

 	
  

 	
  

 	
 Title:

 	
 Executive
 Vice President

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 AmREIT
 Courtyard, LP, a Texas limited partnership

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 AmREIT
 Courtyard GP, LLC, a Texas limited

 
	
  

 	
  

 	
 liability
 company, its general partner

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 AmREIT Inc.,
 a Maryland corporation, its

 
	
  

 	
  

 	
  

 	
 sole member

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 By:

 	
  

 	
 /s/ Chad C.
 Braun

 
	
  

 	
  

 	
  

 	
 Name:

 	
 Chad C.
 Braun

 
	
  

 	
  

 	
  

 	
 Title:

 	
 Executive
 Vice President

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 AmREIT GC
 Houston, LP, a Texas limited partnership

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 AmREIT GC
 Houston GP, LLC, a Texas limited

 
	
  

 	
  

 	
 liability
 company, its general partner

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 AmREIT Inc.,
 a Maryland corporation, its

 
	
  

 	
  

 	
  

 	
 sole member

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 By:

 	
  

 	
 /s/ Chad C.
 Braun

 
	
  

 	
  

 	
  

 	
 Name:

 	
 Chad C.
 Braun

 
	
  

 	
  

 	
  

 	
 Title:

 	
 Executive
 Vice President

 

[Signatures Continue on the Next
Page]

 [Consent of Permitted Affiliates]

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 AmREIT I-45
 Southpoint, LP, a Texas limited partnership

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 AmREIT I-45
 Southpoint GP, LLC, a Texas limited

 
	
  

 	
  

 	
 liability
 company, its general partner

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 AmREIT Inc.,
 a Maryland corporation, its

 
	
  

 	
  

 	
  

 	
 sole member

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 By:

 	
  

 	
 /s/ Chad C.
 Braun

 
	
  

 	
  

 	
  

 	
 Name:

 	
 Chad C. Braun

 
	
  

 	
  

 	
  

 	
 Title:

 	
 Executive
 Vice President

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 AmREIT
 Macarthur Park, LP, a Delaware limited

 
	
  

 	
 partnership

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 AmREIT
 MacArthur Park GP, LLC, a Delaware

 
	
  

 	
  

 	
 limited
 liability company, its general partner

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 AmREIT Inc.,
 a Maryland corporation, its

 
	
  

 	
  

 	
  

 	
 sole member

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 By:

 	
  

 	
 /s/ Chad C.
 Braun

 
	
  

 	
  

 	
  

 	
 Name:

 	
 Chad C.
 Braun

 
	
  

 	
  

 	
  

 	
 Title:

 	
 Executive
 Vice President

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 AmREIT
 Uptown Houston, LP, a Texas limited partnership

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 AmREIT
 Uptown Houston GP, LLC, a Texas

 
	
  

 	
  

 	
 limited
 liability company, its general partner

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 AmREIT Inc.,
 a Maryland corporation, its

 
	
  

 	
  

 	
  

 	
 sole member

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 By:

 	
  

 	
 /s/ Chad C.
 Braun

 
	
  

 	
  

 	
  

 	
 Name:

 	
 Chad C.
 Braun

 
	
  

 	
  

 	
  

 	
 Title:

 	
 Executive
 Vice President

 

[Signatures Continue on the Next
Page]

 [Consent of Permitted Affiliates]

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Sugar Land
 Plaza, LP, a Texas limited partnership

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 AmREIT SPE
 4, LLC, a Texas limited liability

 
	
  

 	
  

 	
 company, its
 general partner

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 AmREIT Inc.,
 a Maryland corporation, its

 
	
  

 	
  

 	
  

 	
 sole member

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 By:

 	
  

 	
 /s/ Chad C.
 Braun

 
	
  

 	
  

 	
  

 	
 Name:

 	
 Chad C.
 Braun

 
	
  

 	
  

 	
  

 	
 Title:

 	
 Executive
 Vice President

 

 [Consent of Permitted Affiliates]efc12-618_ex41.htm

Exhibit 4.1

 

 

 

	 	 

 

 

 

 

 

 

 

 

DAIMLER RETAIL RECEIVABLES LLC,

 

as Depositor,

 

and

 

[_________________],

 

as Owner Trustee

 

_______________________

 

FORM OF TRUST AGREEMENT

 

Dated as of [__________]

 

_______________________

 

 

 

 

 

 

 

	 	 

 

  

  

  

 

TABLE OF CONTENTS

 

Page

 

ARTICLE ONE

 

DEFINITIONS

 

	
Section 1.01.

	
Capitalized Terms; Rules of Usage

	
1

 

ARTICLE TWO

 

ORGANIZATION

 

	
Section 2.01.

	
Name

	
2

	
Section 2.02.

	
Office

	
2

	
Section 2.03.

	
Purposes and Powers

	
2

	
Section 2.04.

	
Appointment of Owner Trustee

	
3

	
Section 2.05.

	
Initial Capital Contribution of Trust Property

	
3

	
Section 2.06.

	
Declaration of Trust

	
3

	
Section 2.07.

	
Liability of Certificateholders

	
4

	
Section 2.08.

	
Title to Trust Property

	
4

	
Section 2.09.

	
Situs of Issuer

	
4

	
Section 2.10.

	
Representations and Warranties of the Depositor

	
4

	
Section 2.11.

	
Federal Income Tax Matters

	
5

 

ARTICLE THREE

 

CERTIFICATES AND TRANSFER OF INTERESTS

 

	
Section 3.01.

	
Initial Ownership

	
7

	
Section 3.02.

	
The Certificates

	
7

	
Section 3.03.

	
Authentication and Delivery of Certificates

	
8

	
Section 3.04.

	
Registration, Transfer and Exchange of Certificates.

	
8

	
Section 3.05.

	
Mutilated, Destroyed, Lost or Stolen Certificates.

	
9

	
Section 3.06.

	
Persons Deemed Certificateholders

	
10

	
Section 3.07.

	
Access to List of Certificateholders’ Names and Addresses

	
10

	
Section 3.08.

	
Maintenance of Office or Agency

	
11

	
Section 3.09.

	
No Legal Title to Trust Property in Certificateholders

	
11

	
Section 3.10.

	
No Recourse

	
11

	
Section 3.11.

	
Appointment of Paying Agent

	
11

	
Section 3.12.

	
Certificates Nonassessable and Fully Paid

	
12

 

 

 

  

i

  

Page

 

 

ARTICLE FOUR

 

ACTIONS BY OWNER TRUSTEE

 

	
Section 4.01.

	
Prior Notice to Certificateholders with Respect to Certain Matters

	
13

	
Section 4.02.

	
Action by Certificateholders with Respect to Certain Matters

	
13

	
Section 4.03.

	
Action by Certificateholders with Respect to Bankruptcy

	
13

	
Section 4.04.

	
Restrictions on Certificateholders’ Power

	
14

	
Section 4.05.

	
Majority Control

	
14

	
Section 4.06.

	
Certain Litigation Matters

	
14

 

ARTICLE FIVE

 

APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

 

	
Section 5.01.

	
Application of Trust Funds

	
15

	
Section 5.02.

	
Method of Payment

	
15

	
Section 5.03.

	
No Segregation of Monies; No Interest

	
16

	
Section 5.04.

	
Accounting and Reports to Certificateholders, the IRS and Others

	
16

	
Section 5.05.

	
Signature on Returns; Tax Matters Partner

	
16

 

ARTICLE SIX

 

AUTHORITY AND DUTIES OF OWNER TRUSTEE

 

	
Section 6.01.

	
General Authority

	
18

	
Section 6.02.

	
General Duties

	
18

	
Section 6.03.

	
Action Upon Instruction

	
18

	
Section 6.04.

	
No Duties Except as Specified in this Agreement or in Instructions

	
19

	
Section 6.05.

	
No Action Except Under Specified Documents or Instructions

	
19

	
Section 6.06.

	
Restrictions

	
20

	
Section 6.07.

	
Notice to Administrator of Repurchase Requests

	
20

 

ARTICLE SEVEN

 

THE OWNER TRUSTEE

 

	
Section 7.01.

	
Acceptance of Duties

	
21

	
Section 7.02.

	
Furnishing of Documents

	
22

	
Section 7.03.

	
Representations and Warranties

	
22

	
Section 7.04.

	
Reliance; Advice of Counsel

	
23

	
Section 7.05.

	
Not Acting in Individual Capacity

	
23

	
Section 7.06.

	
Owner Trustee Not Liable for Basic Documents or Certificates

	
23

	
Section 7.07.

	
Owner Trustee May Own Securities

	
24

 

 

  

ii

  

 

Page

 

ARTICLE EIGHT

 

COMPENSATION AND INDEMNIFICATION OF OWNER TRUSTEE

 

	
Section 8.01.

	
Owner Trustee’s Fees and Expenses

	
25

	
Section 8.02.

	
Indemnification

	
25

	
Section 8.03.

	
Payments to the Owner Trustee

	
25

 

ARTICLE NINE

 

TERMINATION OF TRUST AGREEMENT

 

	
Section 9.01.

	
Termination of Trust Agreement

	
26

 

ARTICLE TEN

 

SUCCESSOR AND ADDITIONAL OWNER TRUSTEES

 

	
Section 10.01.

	
Eligibility Requirements for Owner Trustee

	
28

	
Section 10.02.

	
Resignation or Removal of Owner Trustee

	
28

	
Section 10.03.

	
Successor Owner Trustee

	
29

	
Section 10.04.

	
Merger or Consolidation of Owner Trustee

	
29

	
Section 10.05.

	
Appointment of Co-Trustee or Separate Trustee

	
30

 

ARTICLE ELEVEN

 

REGULATION AB

 

	
Section 11.01.

	
Intent of the Parties; Reasonableness

	
32

	
Section 11.02.

	
Representations and Warranties

	
32

	
Section 11.03.

	
Information to Be Provided by the Owner Trustee

	
32

 

ARTICLE TWELVE

 

MISCELLANEOUS

 

	
Section 12.01.

	
Supplements and Amendments

	
34

	
Section 12.02.

	
Limitations on Rights of Others

	
35

	
Section 12.03.

	
Notices

	
35

	
Section 12.04.

	
Severability

	
36

	
Section 12.05.

	
Counterparts

	
36

	
Section 12.06.

	
Successors and Assigns

	
36

	
Section 12.07.

	
No Petition

	
36

	
Section 12.08.

	
Table of Contents and Headings

	
36

 

 

  

iii

  

 

Page

 

 

	
Section 12.09.

	
GOVERNING LAW

	
37

 

EXHIBITS

 

	 Exhibit A – Form of Certificate	A-1
	 Exhibit B – Form of Certificate of Trust 	B-1
	 Exhibit C – Form of Repurchase Request Notice   	B-1
	 	 
	 	 
	 	 

 

                                                      

                                                               

                                                                                 

  

iv

  

This AMENDED AND RESTATED TRUST AGREEMENT, dated as of [__________] (as amended, restated, supplemented or otherwise modified from time to time, this “Agreement”), is between DAIMLER RETAIL RECEIVABLES LLC, a Delaware limited liability company, as depositor (the “Depositor”), and [_________________], a Delaware corporation with trust powers, as trustee (the “Owner Trustee”).

 

WHEREAS, the parties hereto entered into a Trust Agreement, dated as of [_____________] (the “Original Trust Agreement”); and

 

WHEREAS, the parties hereto are entering into this Agreement pursuant to which, among other things, the Original Trust Agreement will be amended and restated.

 

NOW, THEREFORE, in consideration of the mutual agreements herein contained, and of other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE ONE

 

DEFINITIONS

 

Section 1.01.   Capitalized Terms; Rules of Usage.    Capitalized terms used in this Agreement that are not otherwise defined shall have the meanings ascribed thereto in Appendix A to the Sale and Servicing Agreement, dated as of [__________], among the Issuer, the Depositor and Mercedes-Benz Financial Services USA LLC, which Appendix is hereby incorporated into and made a part of this Agreement.  Appendix A also contains rules as to usage applicable to this Agreement.

 

 

  

  

  

ARTICLE TWO

 

ORGANIZATION

 

Section 2.01.   Name.  The trust created pursuant to the Original Trust Agreement and continued hereby shall be known as “Mercedes-Benz Auto Receivables Trust 201[_]-[_]”, in which name the Owner Trustee may conduct the business of the Issuer, make and execute contracts and other instruments on behalf of the Issuer and sue and be sued.

 

Section 2.02.   Office.  The office of the Issuer shall be in care of the Owner Trustee at the Corporate Trust Office or at such other address in the State of Delaware as the Owner Trustee may designate by written notice to the Trustees and the Certificateholders.

 

Section 2.03.   Purposes and Powers.

 

(a)   The purpose of the Issuer is to engage in the following activities:

 

(i)  to issue the Notes pursuant to the Indenture and the Certificates pursuant to this Agreement and to convey and deliver the Securities upon the written order of the Depositor;

(ii)  to issue additional securities pursuant to one or more supplemental indentures or amendments to this Agreement and to transfer all or a portion of such securities to the Depositor, subject to compliance with the Basic Documents, in exchange for all or a portion of the Certificates; provided, that:

 

(A)   the rights of the holders of such additional securities, when taken as a whole, are no greater than the rights of the Certificateholders immediately prior to the issuance of such additional securities (unless all Noteholders otherwise consent);

 

(B)   the Rating Agencies have provided written confirmation that the issuance of the additional securities will not adversely affect the ratings of any outstanding Class of Notes or, if then rated by any Rating Agency, of the Certificates; and

 

(C)   the Depositor delivers an opinion to the Trustees that the issuance of the additional notes or certificates will not (1) adversely affect in any material respect the interest of any Noteholder, (2) cause any Outstanding Note to be deemed sold or exchanged, (3) cause the Issuer to be treated as an association or publicly traded partnership taxable as a corporation for federal income tax purposes or (4) adversely affect the treatment of the Outstanding Notes as debt for federal income tax purposes;

 

(iii)  to enter into and perform its obligations under any interest rate protection or swap agreement or agreements between the Issuer and one or more counterparties;

 

 

  

2

  

(iv)  to permit the Depositor to use, or to use, at the direction of the Depositor, the proceeds of the sale of the Notes to (A) purchase the Receivables on the Closing Date, (B) fund the Reserve Fund with an amount equal to the Reserve Fund Deposit, (C) pay the organizational, start-up and transactional expenses of the Issuer and (D) pay to the Depositor, or permit the Depositor to retain, the balance;

 

(v)  to pay interest on and principal of the Notes to the Noteholders and to cause any Excess Collections to be paid to the Certificateholders in accordance with the Indenture;

 

(vi)  to Grant the Trust Property to the Indenture Trustee pursuant to the Indenture to secure payments on the Notes;

 

(vii)  to enter into and perform its obligations under the Issuer Basic Documents; and

 

(viii)  to engage in those activities, including entering into agreements, that are necessary, suitable or convenient to accomplish the foregoing or are incidental thereto or connected therewith.

 

(b)   The Issuer is hereby authorized to engage in the foregoing activities.  The Issuer shall not engage in any activity other than in connection with the foregoing or other than as required or authorized by the terms of this Agreement and the other Basic Documents.

 

Section 2.04.   Appointment of Owner Trustee.  The Depositor hereby confirms the appointment of the Owner Trustee as trustee of the Issuer effective as of the date of the Original Trust Agreement, to have all the rights, powers and duties set forth herein and in the Delaware Statutory Trust Act.

 

Section 2.05.   Initial Capital Contribution of Trust Property.  The Depositor has previously sold, assigned, transferred, conveyed and set over to the Owner Trustee, as of the date of the Original Trust Agreement, the sum of $1.  The Owner Trustee hereby acknowledges receipt in trust from the Depositor, of the foregoing contribution, which shall constitute the initial Owner Trust Estate.  The Depositor shall pay the organizational expenses of the Issuer as they may arise or shall, upon the request of the Owner Trustee, promptly reimburse the Owner Trustee for any such expenses paid by the Owner Trustee.  On the Closing Date, the Depositor will sell, transfer, assign and convey to the Issuer certain property to be included in the Trust Property pursuant to the Sale and Servicing Agreement, and the Issuer will issue and convey the Securities to or upon the order of the Depositor.

 

Section 2.06.   Declaration of Trust.  The Owner Trustee hereby declares that it will hold the Trust Property in trust upon and subject to the conditions set forth herein for the use and benefit of the Certificateholders, subject to the obligations of the Issuer under the Basic Documents.  It is the intention of the parties that (i) the Issuer constitute a statutory trust under the Delaware Statutory Trust Act and that this Agreement constitute the governing instrument of such statutory trust and (ii) solely for income and franchise tax purposes, the Issuer shall be treated as either an entity that is disregarded as separate from the beneficial owner of the equity if there is only one such owner, or as a partnership (other than an association or publicly traded

 

 

  

3

  

partnership) if there are two or more such owners, with the assets of the partnership being the Receivables and other assets held by the Issuer, the partners of the partnership being the Certificateholders and any holders of Notes that are required by the IRS to be treated as equity in the Issuer, and the remaining Notes constituting indebtedness of the partnership.  The parties agree that, unless otherwise required by appropriate tax authorities, the Issuer will file or cause to be filed annual or other necessary returns, reports and other forms consistent with the foregoing characterization of the Issuer for such tax purposes.  Effective as of the date hereof, the Owner Trustee shall have all the rights, powers and duties set forth herein and in the Delaware Statutory Trust Act with respect to accomplishing the purposes of the Issuer as set forth in Section 2.03(a).  The Owner Trustee has filed the Certificate of Trust with the Secretary of State.

 

Section 2.07.   Liability of Certificateholders.  The Certificateholders shall be entitled to the same limitation of personal liability extended to stockholders of private corporations for profit organized under the general corporation law of the State of Delaware.

 

Section 2.08.   Title to Trust Property.  Legal title to the Trust Property shall be vested at all times in the Issuer as a separate legal entity except where Applicable Law in any jurisdiction requires title to any part of the Trust Property to be vested in a trustee or trustees, in which case title shall be deemed to be vested in the Owner Trustee, a co-trustee or a separate trustee, as the case may be; provided, that concurrently with or prior to title being deemed to be vested in a co-trustee and/or separate trustee, such trustee must provide a written grant of a security interest in the Trust Property to the Indenture Trustee and must authorize the filing of a financing statement to perfect the Indenture Trustee’s security interest.

 

Section 2.09.   Situs of Issuer.  The Issuer will be located and administered in the State of Delaware.  Any bank accounts maintained by the Owner Trustee on behalf of the Issuer shall be located in the States of Delaware or New York.  The Issuer shall not have any employees in any State other than the State of Delaware; provided, however, that nothing herein shall restrict or prohibit the Owner Trustee from having employees within or outside of the State of Delaware.  Payments will be received by the Issuer only in the States of Delaware or New York, and payments will be made by the Issuer only from the States of Delaware or New York.  The only office of the Issuer will be at the Corporate Trust Office of the Owner Trustee in the State of Delaware.

 

Section 2.10.   Representations and Warranties of the Depositor.  The Depositor hereby represents and warrants to the Owner Trustee that:

 

(i) The Depositor is duly formed and validly existing as a limited liability company in good standing under the laws of the State of Delaware, with power and authority to own its properties and to conduct its business as such properties are currently owned and such business is presently conducted.

 

(ii) The Depositor is not a Benefit Plan.

 

(iii) The Depositor is duly qualified to do business as a foreign limited liability company in good standing and has obtained all necessary licenses and approvals in all jurisdictions in which the failure to so qualify or obtain such licenses and approvals

 

 

  

4

  

would, in the reasonable judgment of the Depositor, materially and adversely affect the performance by the Depositor of its obligations under, or the validity or enforceability of, this Agreement.

 

(iv) The Depositor has the power and authority to execute and deliver this Agreement and to carry out its terms and to transfer and assign the property to be transferred and assigned to and deposited with the Issuer; and the execution, delivery and performance of this Agreement and such transfer, assignment and deposit have been duly authorized by the Depositor by all necessary limited liability company action.

 

(v) This Agreement constitutes a legal, valid and binding obligation of the Depositor, enforceable in accordance with its terms, except as enforceability may be subject to or limited by bankruptcy, insolvency, reorganization, moratorium, liquidation, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights in general and by general principles of equity, regardless of whether such enforceability shall be considered in a Proceeding in equity or at law.

 

(vi) The consummation of the transactions contemplated by this Agreement and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under, the certificate of formation or limited liability company agreement of the Depositor, or any material indenture, agreement or other instrument to which the Depositor is a party or by which it is bound; nor result in the creation or imposition of any Lien upon any properties of the Depositor pursuant to the terms of any such material indenture, agreement or other instrument (other than pursuant to the Basic Documents); nor violate any Applicable Law or, to the best of the Depositor’s knowledge, any order, rule or regulation applicable to the Depositor of any Governmental Authority having jurisdiction over the Depositor or its properties.

 

(vii) To the knowledge of the Depositor, there are no Proceedings or investigations pending or threatened against the Depositor before any Governmental Authority having jurisdiction over the Depositor or its properties (a) asserting the invalidity of any Basic Document, (b) seeking to prevent the consummation of any of the transactions contemplated by any Basic Document, (c) seeking any determination or ruling that would materially and adversely affect the performance by the Depositor of its obligations under, or the validity or enforceability of, any Depositor Basic Document or (d) seeking any determination or ruling that would adversely affect the federal tax attributes of the Issuer or the Securities.

 

Section 2.11.   Federal Income Tax Matters.  The Certificateholders acknowledge that it is their intent and that they understand it is the intent of the Depositor and the Servicer that, for purposes of federal income, State and local income and franchise tax and any other income taxes, the Issuer shall be treated as either an entity that is disregarded as separate from the beneficial owner of the equity in the Issuer if there is only one such owner, or as a partnership (other than an association or publicly traded partnership) if there are two or more such owners, and income, gain or loss of the Issuer for such month as determined for federal, State and local income and franchise tax purposes shall be allocated among the Certificateholders as of the Record Date

 

 

  

5

  

occurring within such month, in proportion to their ownership of the Certificate Percentage Interest on such date.  The Depositor hereby agrees and each Certificateholder by acceptance of a Certificate agrees to such treatment and each agrees to take no action inconsistent with the foregoing characterization.

 

The Depositor is authorized to modify the allocations in this Section if necessary or appropriate, in its sole discretion, for the allocations to reflect fairly the economic income, gain or loss to the Certificateholders or as otherwise required by the Code.

 

 

  

6

  

ARTICLE THREE

 

CERTIFICATES AND TRANSFER OF INTERESTS

 

Section 3.01.   Initial Ownership.  Upon the formation of the Issuer by the contribution and conveyance by the Depositor as described in Section 2.05 and until the issuance of the Certificates, the Depositor shall be the sole beneficiary of the Issuer.

 

Section 3.02.   The Certificates.

 

(a)   The Certificates shall be issued in one or more registered, definitive, physical certificates substantially in the form of Exhibit A.  The Certificates may be in printed or typewritten form and shall be executed on behalf of the Issuer by manual or facsimile signature of an Authorized Officer of the Owner Trustee.  Certificates bearing the manual or facsimile signatures of individuals who were, at the time when such signatures shall have been affixed, authorized to sign on behalf of the Issuer, shall be validly issued and entitled to the benefits of this Agreement, notwithstanding that such individuals or any of them shall have ceased to be so authorized prior to the authentication and delivery of such Certificates or did not hold such offices at the date of authentication and delivery of such Certificates.

 

(b)   If Transfer of a Certificate is permitted pursuant to this Section and Section 3.04, the transferee of such Certificate shall become a Certificateholder, and shall be entitled to the rights and subject to the obligations of a Certificateholder hereunder upon such transferee’s acceptance of a Certificate duly registered in such transferee’s name pursuant to Section 3.04.

 

(c)   The Depositor as the sole Certificateholder may exchange all or a portion of the Certificates for additional securities issued by the Issuer pursuant to one or more supplemental indentures to the Indenture or amendments to this Agreement.  Such additional securities may consist of one or more classes of notes, certificates or other securities, as directed by the Depositor, each having the characteristics, rights and obligations as may be directed by the Depositor (which may include subordination to one or more other classes of such additional securities), so long as the following conditions are satisfied: (i) the rights of the holders of such additional securities, when taken as a whole, are no greater than the rights of the Certificateholders immediately prior to the issuance of such additional securities (unless the Holders of 100% of the Notes Outstanding otherwise consent); (ii) the Rating Agencies have provided written confirmation that the issuance of such additional securities will not adversely affect the ratings of the Notes; and (iii) the Depositor has provided to the Indenture Trustee and the Owner Trustee an Opinion of Counsel to the effect that the issuance of such additional securities will not (1) adversely affect in any material respect the interests of any Noteholder, (2) cause any Note to be deemed sold or exchanged, (3) cause the Issuer to be treated as an association or publicly traded partnership taxable as a corporation for federal income tax purposes or (4) adversely affect the treatment of the Notes as debt for federal income tax purposes.  Without limiting the foregoing, one or more classes of such additional securities may, if so directed by the Depositor, be secured by all or a portion of the Trust Estate, so long as such security interest is subordinated in priority to the security interest granted to the Noteholders pursuant to the Indenture.  Subject to this Section and the terms of the other Basic Documents, the Issuer, will take (at the expense of the Depositor) all actions requested by the Depositor to

 

 

  

7

  

facilitate the issuance and sale of any such additional securities or the grant and perfection of any security interest granted pursuant to this Section, including the authorization of the filing of any financing statements in jurisdictions deemed necessary or advisable by the Depositor to perfect such security interest.

 

Section 3.03.   Authentication and Delivery of Certificates.  Concurrently with the sale of the Receivables to the Issuer pursuant to the Sale and Servicing Agreement, the Owner Trustee shall cause the Certificates to be executed on behalf of the Issuer, authenticated and delivered to or upon the written order of the Depositor, signed by its president, any Vice President, its treasurer, any assistant treasurer, its secretary or any assistant secretary, without further limited liability company action by the Depositor.  No Certificate shall entitle the respective Certificateholder to any benefit under this Agreement, or be valid for any purpose, unless there shall appear on such Certificate a certificate of authentication substantially in the form set forth in Exhibit A, executed by the Owner Trustee or its authenticating agent, by manual signature; and such authentication shall constitute conclusive evidence that such Certificate shall have been duly authenticated and delivered hereunder.  All Certificates shall be dated the date of their authentication.  Upon issuance, authentication and delivery pursuant to the terms hereof, the Certificates will be entitled to the benefits of this Agreement.

 

Section 3.04.   Registration, Transfer and Exchange of Certificates.

 

(a)   The Owner Trustee initially shall be the registrar (the “Certificate Registrar”) for the purpose of registering Certificates and Transfers of Certificates as herein provided.  The Certificate Registrar shall keep or cause to be kept, at the office or agency maintained pursuant to Section 3.08, a register (the “Certificate Register”) in which, subject to such reasonable regulations as it may prescribe, the Certificate Registrar shall provide for the registration of Certificates and the registration of Transfers of Certificates.  Upon any resignation of any Certificate Registrar, the Owner Trustee shall, upon receipt of written instructions from the Depositor, promptly appoint a successor thereto.

 

(b)   The Certificates may not be acquired by or for the account of a Benefit Plan.  Each Certificateholder, by its acceptance of a Certificate, shall be deemed to have represented and warranted that such Certificateholder is not (i) a Benefit Plan and is not a Person acting on behalf of a Benefit Plan or a Person using the assets of a Benefit Plan to effect the transfer of such Certificate or (ii) an insurance company purchasing a Certificate with funds contained in an “insurance company general account” (as defined in Section V(e) of PTCE 95-60) that includes the assets of a Benefit Plan for purposes of the Plan Asset Regulation.

 

Any Person who is not an Affiliate of the Seller and acquires more than 49.9% of the Certificates will be deemed to represent that it is not a party in interest (within the meaning of ERISA) or a disqualified person (within the meaning of Section 4975(e)(2) of the Code) with respect to any Benefit Plan, other than a Benefit Plan that it sponsors for the benefit of its employees, and that no Benefit Plan with respect to which it is a party in interest has or will acquire any interest in the Notes.

 

To the extent permitted under Applicable Law (including ERISA), neither the Owner Trustee nor the Certificate Registrar shall be under any liability to any Person for any registration

 

 

  

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of Transfer of any Certificate that is in fact not permitted under Applicable Law (including ERISA) or for taking any other action with respect to such Certificate under the provisions of this Agreement so long as such Transfer was registered by the Owner Trustee or the Certificate Registrar in accordance with this Agreement.

 

(c)   Upon surrender by a Certificateholder for registration of Transfer of any Certificate at the office or agency of the Certificate Registrar to be maintained as provided in Section 3.08, and upon compliance with any provisions of this Agreement relating to such Transfer, the Owner Trustee shall execute on behalf of the Issuer and the Owner Trustee shall authenticate and deliver to the Certificateholder making such surrender, in the name of the designated transferee or transferees, one or more new Certificates in any authorized denomination evidencing the same aggregate interest in the Issuer.  Each Certificate presented or surrendered for registration of Transfer shall be accompanied by a written instrument of transfer and accompanied by IRS Form W-8BEN, W-8ECI or W-9, as applicable, in form satisfactory to the Owner Trustee and the Certificate Registrar, duly executed by the Certificateholder or its attorney duly authorized in writing.  Each Certificate presented or surrendered for registration of Transfer shall be canceled and subsequently disposed of by the Certificate Registrar in accordance with its customary practice.  No service charge shall be made for any registration of Transfer of Certificates, but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any Transfer of Certificates.

 

(d)   All Certificates surrendered for registration of Transfer, if surrendered to the Issuer or any agent of the Owner Trustee or the Issuer under this Agreement, shall be delivered to the Owner Trustee and promptly cancelled by it, or, if surrendered to the Owner Trustee, shall be promptly cancelled by it, and no Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Agreement.  The Owner Trustee shall dispose of cancelled Certificates in accordance with its normal practice.

 

Section 3.05.   Mutilated, Destroyed, Lost or Stolen Certificates.

 

(a)   If (i) any mutilated Certificate is surrendered to the Certificate Registrar, or the Certificate Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Certificate and (ii) there is delivered to the Certificate Registrar and the Owner Trustee such security or indemnity as may be required by them to save each of them harmless, then, in the absence of notice that such Certificate has been acquired by a Protected Purchaser, the Owner Trustee on behalf of the Issuer shall execute and the Owner Trustee or its authenticating agent shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of a like tenor and Certificate Percentage Interest.  If, after the delivery of such replacement Certificate or payment of a destroyed, lost or stolen Certificate, a Protected Purchaser of the original Certificate in lieu of which such replacement Certificate was issued presents for payment such original Certificate, the Issuer and the Owner Trustee shall be entitled to recover such replacement Certificate (or such payment) from the Person to whom such replacement Certificate was delivered or any Person taking such replacement Certificate from such Person to whom such replacement Certificate was delivered or any assignee of such Person, except a Protected Purchaser, and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the

 

 

  

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Issuer or the Owner Trustee in connection therewith.  Any duplicate Certificate issued pursuant to this Section shall constitute conclusive evidence of ownership in the Issuer, as if originally issued, whether or not the lost, stolen or destroyed Certificate shall be found at any time.

 

(b)   Upon the issuance of any replacement Certificate under this Section, the Issuer may require the payment by the Certificateholder of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with such issuance and any other reasonable expenses (including the fees and expenses of the Owner Trustee) related thereto.

 

(c)   Every replacement Certificate issued pursuant to this Section in replacement of any mutilated, destroyed, lost or stolen Certificate shall constitute an original additional contractual obligation of the Issuer, whether or not the mutilated, destroyed, lost or stolen Certificate shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Agreement equally and proportionately with any and all other Certificates duly issued hereunder.

 

(d)   The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Certificates.

 

Section 3.06.   Persons Deemed Certificateholders.  Prior to due presentation of a Certificate for registration of Transfer, the Owner Trustee, the Certificate Registrar, any Paying Agent and any of their respective agents may treat the Person in whose name such Certificate is registered in the Certificate Register (as of the day of determination) as the Certificateholder of such Certificate for the purpose of receiving distributions pursuant to Section 5.01 and for all other purposes whatsoever, and none of the Owner Trustee, the Certificate Registrar, any Paying Agent or any of their respective agents shall be bound by any notice to the contrary.

 

Section 3.07.   Access to List of Certificateholders’ Names and Addresses.  The Certificate Registrar shall furnish or cause to be furnished to the Servicer, the Depositor and the Indenture Trustee or the Owner Trustee, as the case may be, within 15 days after receipt by the Certificate Registrar of a written request therefor from the Servicer, the Depositor or either Trustee, as the case may be, a list, in such form as the requesting party may reasonably require, of the names and addresses of the Certificateholders as of the most recent Record Date.  If three or more Certificateholders, or one or more Holders of Certificates evidencing not less than 25% of the aggregate Certificate Percentage Interest (hereinafter referred to as the “Applicants”), apply in writing to the Certificate Registrar, and such application states that the Applicants desire to communicate with other Certificateholders with respect to their rights under this Agreement or under the Certificates and such application is accompanied by a copy of the communication that such Applicants propose to transmit (which shall be deemed to be a purpose reasonably related to the Applicants’ interest in the Issuer), then the Certificate Registrar shall, within five Business Days after the receipt of such application, afford such Applicants access during normal business hours to the current list of Certificateholders.  Each Certificateholder, by receiving and holding a Certificate, shall be deemed to have agreed not to hold any of the Depositor, the Certificate Registrar or the Owner Trustee accountable by reason of the disclosure of its name and address, regardless of the source from which such information was derived.

 

 

  

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Section 3.08.   Maintenance of Office or Agency.  The Issuer shall maintain an office or offices or agency or agencies where notices and demands to or upon the Issuer or the Owner Trustee in respect of the Basic Documents may be served.  The Issuer initially designates its office c/o [_________________], [_______________________________], Wilmington, Delaware  [_____], for such purposes and will promptly notify the Depositor and the Owner Trustee of any change in the location of such office.

 

Section 3.09.   No Legal Title to Trust Property in Certificateholders.  The Certificateholders shall not have legal title to any part of the Trust Property.  The Certificateholders shall be entitled to receive distributions with respect to their undivided beneficial interest therein only in accordance with Articles Five and Nine.  No transfer, by operation of law or otherwise, of any right, title or interest of the Certificateholders to and in their beneficial interest in the Trust Property shall operate to terminate this Agreement or the trusts hereunder or entitle any transferee to an accounting or to the transfer to it of legal title to any part of the Trust Property.

 

Section 3.10.   No Recourse.  Each Certificateholder by accepting a Certificate acknowledges that the Certificates represent beneficial interests in the Issuer only and do not represent interests in or obligations of the Depositor, the Seller, the Servicer, the Administrator, either Trustee or any of their respective Affiliates and no recourse may be had against such parties or their assets, except as may be expressly set forth or contemplated in the Certificates or any Basic Document.

 

Section 3.11.   Appointment of Paying Agent.  The Paying Agent shall make distributions to Certificateholders in accordance with the Indenture and shall report the amount of such distributions to the Owner Trustee.  The Paying Agent shall have the revocable power to withdraw funds from the Collection Account for the purpose of making the distributions referred to above.  The Owner Trustee may revoke such power and remove the Paying Agent if the Owner Trustee determines in its sole discretion that the Paying Agent shall have failed to perform its obligations under this Agreement in any material respect.  The Paying Agent shall initially be the Indenture Trustee, and any co-paying agent chosen by the Paying Agent that is acceptable to the Owner Trustee and the Depositor.  Each Paying Agent shall be permitted to resign as Paying Agent upon 30 days’ prior written notice to the Owner Trustee and the Depositor.  In the event that the Indenture Trustee shall no longer be the Paying Agent, the Owner Trustee, upon receipt of written instruction from the Depositor, shall appoint a successor to act as Paying Agent (which shall be a bank or trust company).  The Owner Trustee shall cause such successor Paying Agent or any additional Paying Agent appointed by the Owner Trustee to execute and deliver to the Owner Trustee an instrument in which such successor Paying Agent or additional Paying Agent shall agree with the Owner Trustee that, as Paying Agent, such successor or additional Paying Agent will hold all sums, if any, held by it for payment to the Certificateholders in trust for the benefit of the Certificateholders entitled thereto until such sums shall be paid to such Certificateholders.  The Paying Agent shall return all unclaimed funds to the Owner Trustee and upon removal of a Paying Agent such Paying Agent shall also return all funds in its possession to the Owner Trustee.  If at any time the Owner Trustee shall act as Paying Agent, the rights, privileges, protections and indemnities afforded to the Owner Trustee hereunder shall apply equally to the Owner Trustee in its role as Paying Agent.  Any reference in

 

 

  

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this Agreement to the Paying Agent shall include any co-paying agent unless the context requires otherwise.

 

Section 3.12.   Certificates Nonassessable and Fully Paid.  Certificateholders shall not be personally liable for obligations of the Issuer.  The interests represented by the Certificates shall be nonassessable for any losses or expenses of the Issuer or for any reason whatsoever, and, upon the authentication thereof by the Owner Trustee pursuant to Sections 3.03, 3.04 or 3.05, the Certificates are and shall be deemed fully paid.

 

 

  

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ARTICLE FOUR

 

ACTIONS BY OWNER TRUSTEE

 

Section 4.01.   Prior Notice to Certificateholders with Respect to Certain Matters.  Subject to the provisions and limitations of Section 4.04, the Owner Trustee shall not take action unless at least 30 days before the taking of such action with respect to the following matters the Owner Trustee shall have notified the Certificateholders in writing of the proposed action and Holders of Certificates evidencing not less than 51% of the aggregate Certificate Percentage Interest shall not have notified the Owner Trustee in writing prior to the 30th day after such notice is given that such Certificateholders have withheld consent or provided alternative direction:

 

(a)   the initiation of any claim or lawsuit by the Issuer and the settlement of any Proceeding, investigation or claim brought by or against the Issuer, in each case other than claims or lawsuits brought by the Servicer on behalf of the Issuer for collection of the Receivables and the Financed Vehicles;

 

(b)   the election by the Issuer to file an amendment to the Certificate of Trust (unless such amendment is required to be filed under the Delaware Statutory Trust Act);

 

(c)   the amendment of the Indenture by a supplemental indenture in circumstances where the consent of any Noteholder (i) is required or (ii) is not required and such amendment materially adversely affects the interests of the Certificateholders;

 

(d)   the amendment of the Administration Agreement, except to cure any ambiguity or to amend or supplement any provision in a manner or to add any provision that would not materially adversely affect the interests of the Certificateholders; or

 

(e)   the appointment pursuant to the Indenture of a successor Note Registrar, Paying Agent or Indenture Trustee or pursuant to this Agreement of a successor Certificate Registrar, or the consent to the assignment by the Note Registrar, Paying Agent, Indenture Trustee or Certificate Registrar of its respective obligations under the Indenture or this Agreement, as applicable.

 

Section 4.02.   Action by Certificateholders with Respect to Certain Matters.  The Owner Trustee may not (i) pursuant to Article Seven of the Sale and Servicing Agreement, remove the Servicer or appoint a Successor Servicer or (ii) remove the Administrator pursuant to Section 1.09 of the Administration Agreement unless Holders of Certificates evidencing not less than 51% of the aggregate Certificate Percentage Interest direct the Owner Trustee to take such action (a) upon the occurrence of the termination of the Servicer pursuant to Article Seven of the Sale and Servicing Agreement and (b) subsequent to the payment in full of the Notes.

 

Section 4.03.   Action by Certificateholders with Respect to Bankruptcy.  The Owner Trustee shall not have the power to commence a voluntary Proceeding under any Insolvency Law relating to the Issuer unless each Certificateholder approves of such commencement in writing in advance and delivers to the Owner Trustee a certificate certifying that such Certificateholder reasonably believes that the Issuer is insolvent.

 

 

  

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Section 4.04.   Restrictions on Certificateholders’ Power.  The Certificateholders shall not direct the Owner Trustee to take or refrain from taking any action if such action or inaction would be contrary to any obligation of the Issuer or the Owner Trustee under any Basic Document or would be contrary to Section 2.03, nor shall the Owner Trustee be obligated to follow any such direction, if given.

 

Section 4.05.   Majority Control.  Except as expressly provided herein, (i) any action that may be taken by the Certificateholders under this Agreement may be taken by the Holders of Certificates evidencing not less than 51% of the aggregate Certificate Percentage Interest and (ii) any written notice of the Certificateholders delivered pursuant to this Agreement shall be effective if signed by Holders of Certificates evidencing not less than 51% of the aggregate Certificate Percentage Interest at the time of the delivery of such notice.

 

Section 4.06.   Certain Litigation Matters.  The Owner Trustee shall provide prompt written notice to the Depositor, the Seller and the Servicer of any Proceeding or investigation actually known to a Responsible Officer of the Owner Trustee in any way relating to the Issuer, the Trust Property or any Issuer Basic Document.

 

 

  

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ARTICLE FIVE

 

APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

 

Section 5.01.   Application of Trust Funds.

 

(a)   On each Distribution Date, upon receipt from the Servicer of an Investor Report pursuant to Section 3.10 of the Sale and Servicing Agreement, the Owner Trustee shall, directly or through a Paying Agent, distribute or cause to be distributed, to the Certificateholders, in proportion to each Certificateholder’s Certificate Percentage Interest, amounts deposited in the Collection Account on such Distribution Date pursuant to Section 4.04 of the Sale and Servicing Agreement and payable to the Certificateholders pursuant to Section 2.08 of the Indenture.

 

(b)   On each Distribution Date, the Owner Trustee shall, directly or through a Paying Agent, send to each Certificateholder of record the related Investor Report provided to the Owner Trustee by the Servicer pursuant to Section 3.10 of the Sale and Servicing Agreement.

 

(c)   In the event that any withholding tax is imposed on the Issuer’s payment (or allocations of income) to a Certificateholder, such tax shall reduce the amount otherwise distributable to such Certificateholder in accordance with this Section.  The Owner Trustee and each Paying Agent are hereby authorized and directed to retain from amounts otherwise distributable to the Certificateholders sufficient funds for the payment of any such withholding tax that is legally owed by the Issuer (but such authorization shall not prevent the Owner Trustee or any Paying Agent from contesting any such tax in appropriate Proceedings and withholding payment of such tax, if permitted by Applicable Law, pending the outcome of such Proceedings, it being understood that neither the Owner Trustee nor any Paying Agent shall have any duty to contest such amounts).  The amount of any withholding tax imposed with respect to a Certificateholder shall be treated as cash distributed to such Certificateholder at the time it is withheld by the Issuer for remittance to the appropriate taxing authority.  If the Owner Trustee or a Paying Agent determines that there is a possibility that withholding tax is payable with respect to a distribution (such as a distribution to a non-U.S. Certificateholder), the Owner Trustee or any Paying Agent may, in its sole discretion, withhold such amounts in accordance with this Section.  If a Certificateholder wishes to apply for a refund of any such withholding tax, the Owner Trustee and each Paying Agent shall reasonably cooperate with such Certificateholder in making such claim so long as such Certificateholder agrees to reimburse the Owner Trustee and each Paying Agent for any out-of-pocket expenses incurred, as applicable.

 

Section 5.02.   Method of Payment.  Subject to Section 9.01(c), distributions required to be made to Certificateholders on any Distribution Date shall be made by the Owner Trustee or a Paying Agent to each Certificateholder of record on the related Record Date by wire transfer, in immediately available funds, to the account of such Certificateholder at a bank or other entity having appropriate facilities therefor, if such Certificateholder shall have provided to the Certificate Registrar and the Paying Agent appropriate written instructions at least five Business Days prior to such Distribution Date and such Certificateholder is the Depositor or an Affiliate thereof or, if not, by check mailed to such Certificateholder at the address of such Certificateholder appearing in the Certificate Register.  Notwithstanding the foregoing, the final distribution in respect of any Certificate will be payable only upon presentation and surrender of

 

 

 

  

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such Certificate at the office or agency maintained for that purpose by the Certificate Registrar pursuant to Section 3.08.

 

Section 5.03.   No Segregation of Monies; No Interest.  Subject to Section 5.01, monies received by the Owner Trustee hereunder need not be segregated in any manner except to the extent required by the Basic Documents or Applicable Law, and may be deposited under such general conditions as may be prescribed by Applicable Law and the Owner Trustee shall not be liable for any interest thereon.

 

Section 5.04.   Accounting and Reports to Certificateholders, the IRS and Others.  The Owner Trustee shall, upon receipt of and based on information provided by the Seller or the Servicer, (i) maintain (or cause to be maintained) the books of the Issuer on the basis of a fiscal year ending December 31 and, based on the accrual method of accounting, (ii) deliver to each Certificateholder, as may be required by the Code and applicable Treasury Regulations, such information as may be required (including Schedule K-1) to enable such Certificateholder to prepare its federal and State income tax returns, (iii) file such tax returns relating to the Issuer (including a partnership information return, IRS Form 1065, if required) and make such elections as may from time to time be required or appropriate under any applicable State or federal statute or rule or regulation thereunder so as to maintain the Issuer’s characterization as a partnership, if so characterized, for federal income tax purposes, (iv) cause such tax returns to be signed in the manner required by Applicable Law and (v) collect or cause to be collected any withholding tax as described in and in accordance with Section 5.01(c) with respect to income or distributions to Certificateholders.  The Owner Trustee, on behalf of the Issuer, shall elect under Section 1278 of the Code to include in income currently any market discount that accrues with respect to the Receivables.  The Owner Trustee, on behalf of the Issuer, shall not make the election provided under Section 754 of the Code.

 

The Owner Trustee may satisfy its obligations with respect to this Section and Section 5.01(c) by retaining, at the expense of the Seller, Accountants selected by the Seller.  The Owner Trustee may require the Accountants to provide to the Owner Trustee, on or before December 31, [_____], a letter in form and substance satisfactory to the Owner Trustee as to whether any federal tax withholding on the Certificates is then required and, if required, the procedures to be followed with respect thereto to comply with the requirements of the Code.  The Accountants shall be required to update such letter in each instance that any additional tax withholding is subsequently required or any previously required tax withholding shall no longer be required.  The Owner Trustee shall be deemed to have discharged its obligations pursuant to this Section and Section 5.01(c) upon its retention of the Accountants, and the Owner Trustee shall not have any liability with respect to the default, negligence or misconduct of the Accountants.  The Owner Trustee shall be entitled to rely on and shall be fully protected in so relying, upon the letter, referred to in this paragraph, from the Accountants and shall have no duty or obligation to verify the accuracy of the contents of such letter.

 

Section 5.05.   Signature on Returns; Tax Matters Partner.

 

(a)   The Owner Trustee shall sign, on behalf of the Issuer, the tax returns of the Issuer upon receipt of such completed tax returns.

 

  

  

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(b)   In the event that the Issuer is required to be treated as a partnership for federal income tax purposes, Daimler Retail Receivables, or the Holder of Certificates having the greatest Certificate Percentage Interest, in the event that Daimler Retail Receivables no longer owns any Certificates, shall be designated the “tax matters partner” of the Issuer pursuant to Section 6231(a)(7)(A) of the Code and applicable Treasury Regulations.

 

  

  

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ARTICLE SIX

 

AUTHORITY AND DUTIES OF OWNER TRUSTEE

 

Section 6.01.   General Authority.  The Owner Trustee is authorized and directed to execute and deliver each Issuer Basic Document and each certificate or other document attached as an exhibit to or contemplated by any Issuer Basic Document and any amendment or other agreement or instrument, in each case in such form as the Depositor shall approve, as evidenced conclusively by the Owner Trustee’s execution thereof.  In addition to the foregoing, the Owner Trustee is authorized, but shall not be obligated, to take all actions required of the Issuer pursuant to the Basic Documents.  The Owner Trustee is further authorized from time to time to take such action as the Administrator or Certificateholders recommends with respect to the Basic Documents.

 

Section 6.02.   General Duties.

 

(a)   It shall be the duty of the Owner Trustee to discharge (or cause to be discharged) all of its responsibilities pursuant to the terms of this Agreement and to administer the Issuer for the benefit of the Certificateholders, subject to the Basic Documents and in accordance with the provisions of this Agreement.  Notwithstanding the foregoing, the Owner Trustee shall be deemed to have discharged its duties and responsibilities hereunder and to the extent expressly provided for under the other Basic Documents to the extent the Administrator has agreed in the Administration Agreement to perform any act or to discharge any duty of the Owner Trustee or the Issuer hereunder or under any other Basic Document, and the Owner Trustee shall not be held liable for the default or failure of the Administrator to carry out its obligations under the Administration Agreement.

 

(b)   The Owner Trustee shall cooperate with the Administrator in carrying out the Administrator’s obligation to qualify and preserve the Issuer’s qualification to do business in each jurisdiction, if any, in which such qualification is or shall be necessary to protect the validity and enforceability of the Indenture, the Notes, the Receivables and any other instrument and agreement included in the Trust Property; provided that the Owner Trustee may rely on advice of counsel with respect to such obligation.

 

Section 6.03.   Action Upon Instruction.

 

(a)   Subject to Article Four, and in accordance with the terms of the Issuer Basic Documents, the Certificateholders may, by written instruction, direct the Owner Trustee in the management of the Issuer.  Such direction may be exercised at any time by written instruction of the Certificateholders pursuant to Article Four.  In addition, the Administrator may direct the Owner Trustee in the management of the Issuer in accordance with Section 6.01 and the Administration Agreement.

 

(b)   The Owner Trustee shall not be required to take any action under this Agreement or any other Basic Document if the Owner Trustee shall have reasonably determined, or shall have been advised by counsel, that such action is likely to result in liability on the part of the

 

 

 

  

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Owner Trustee or is contrary to the terms of any Basic Document or is otherwise contrary to Applicable Law.

 

(c)   Whenever the Owner Trustee is unable to decide between alternative courses of action permitted or required by the terms of any Basic Document or in the event that the Owner Trustee is unsure as to the application of any provision of any Basic Document or any such provision is ambiguous as to its application, or is, or appears to be, in conflict with any other applicable provision, or in the event that this Agreement permits any determination by the Owner Trustee or is silent or is incomplete as to the course of action that the Owner Trustee is required to take with respect to a particular set of facts, the Owner Trustee shall promptly give notice (in such form as shall be appropriate under the circumstances) to the Certificateholders of record as of the preceding Record Date requesting instruction as to the course of action to be adopted, and to the extent the Owner Trustee acts in good faith in accordance with any written instruction of Holders of Certificates evidencing at least 51% of the Certificate Percentage Interest received, the Owner Trustee shall not be liable on account of such action to any Person.  If the Owner Trustee shall not have received appropriate written instruction within ten days of such notice (or within such shorter period of time as reasonably may be specified in such notice or may be necessary under the circumstances) it may, but shall be under no duty to, take or refrain from taking such action, not inconsistent with the Basic Documents as it shall deem to be in the best interests of the Certificateholders, and shall have no liability to any Person for such action or inaction.

 

(d)   Notwithstanding the foregoing, the right of the Depositor or Certificateholders to take any action affecting the Trust Property shall be subject to the rights of the Indenture Trustee under the Indenture.

 

Section 6.04.   No Duties Except as Specified in this Agreement or in Instructions.  The Owner Trustee shall not have any duty or obligation to manage, make any payment with respect to, register, record, sell, dispose of or otherwise deal with the Trust Property, or to otherwise take or refrain from taking any action under, or in connection with, any document contemplated hereby to which the Owner Trustee or the Issuer is a party, except as expressly provided by the terms of this Agreement or in any document or written instruction received by the Owner Trustee pursuant to Section 6.03; and no implied duties or obligations shall be read into any Basic Document against the Owner Trustee.  The Owner Trustee shall have no responsibility for filing any financing or continuation statement in any public office at any time or to otherwise perfect or maintain the perfection of any Lien granted to it hereunder or to prepare or file any Commission filing for the Issuer or to record any Basic Document.  The Owner Trustee nevertheless agrees that it will, at its own cost and expense, promptly take all action as may be necessary to discharge any Liens on any part of the Trust Property that result from actions by, or claims against, the Owner Trustee in its individual capacity that are not related to the ownership or the administration of the Trust Property.

 

Section 6.05.   No Action Except Under Specified Documents or Instructions.  The Owner Trustee shall not manage, control, use, sell, dispose of or otherwise deal with any part of the Trust Property except in accordance with (i) the powers granted to and the authority conferred upon the Owner Trustee pursuant to this Agreement, (ii) the Basic Documents and (iii) any document or instruction delivered to the Owner Trustee pursuant to Section 6.03.

 

  

  

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Section 6.06. Restrictions.  The Owner Trustee shall not take any action that (i) is inconsistent with the purposes of the Issuer set forth in Section 2.03 or (ii) to the actual knowledge of a Responsible Officer of the Owner Trustee, would (a) affect the treatment of the Notes as indebtedness for federal income or State income or franchise tax purposes, (b) be deemed to cause a taxable exchange of the Notes for federal income or State income or franchise tax purposes or (c) cause the Issuer or any portion thereof to be taxable as an association or publicly traded partnership taxable as a corporation for federal income or State income or franchise tax purposes.  The Certificateholders, the Administrator and the Servicer shall not direct the Owner Trustee to take any action that would violate the provisions of this Section or any other provision of any Basic Document.  Notwithstanding anything herein to the contrary, the Depositor, the Servicer and their respective Affiliates may maintain normal commercial banking relationships with the Owner Trustee and its Affiliates.

 

Section 6.07. Notice to Administrator of Repurchase Requests.  Not later than the [fifth] day of each [_____],  [_____],[_____] and [_____] (or, if such day is not a Business Day, the immediately following Business Day), beginning [_____], [_____], the Owner Trustee shall provide to the Administrator a notice in substantially the form of Exhibit C with respect to any requests received by the Owner Trustee during the immediately preceding calendar quarter (or, in the case of the initial notice, since the Closing Date) that any Receivable be repurchased by the Seller pursuant to Section 2.05 of the Sale and Servicing Agreement or Section 3.03(c) of the Receivables Purchase Agreement.

 

  

  

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ARTICLE SEVEN

 

THE OWNER TRUSTEE

 

Section 7.01.   Acceptance of Duties.  The Owner Trustee accepts the trusts hereby continued and agrees to perform its duties with respect to such trusts, but only upon the terms of this Agreement.  The Owner Trustee also agrees to disburse all monies actually received by it constituting part of the Trust Property upon the terms set forth in the Basic Documents.  The Owner Trustee shall not be answerable or accountable hereunder or under any other Basic Document under any circumstances, except (i) for its own willful misconduct, bad faith or negligence or (ii) in the case of the inaccuracy of any representation or warranty contained in Section 7.03 expressly made by the Owner Trustee, in its individual capacity.  In particular, but not by way of limitation (and subject to the exceptions set forth in the preceding sentence):

 

(a)   the Owner Trustee shall not be liable for any error of judgment made in good faith by the Owner Trustee;

 

(b)   the Owner Trustee shall not be liable with respect to any action taken or omitted to be taken in good faith by it in accordance with the provisions of this Agreement at the instructions of the Administrator or the Certificateholders;

 

(c)   no provision of the Basic Documents shall require the Owner Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers hereunder or under any other Basic Document if the Owner Trustee shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured or provided to it;

 

(d)   under no circumstances shall the Owner Trustee be liable for indebtedness evidenced by or arising under any Basic Document, including the principal of and interest on the Notes or any amounts payable on the Certificates;

 

(e)   the Owner Trustee shall not be responsible for or in respect of the validity or sufficiency of this Agreement or for the due execution hereof by the Depositor or for the form, character, genuineness, sufficiency, value or validity of any of the Trust Property, or for or in respect of the validity or sufficiency of the Basic Documents, other than the signature and the certificate of authentication of the Owner Trustee on the Certificates, and the Owner Trustee shall in no event assume or incur any liability, duty or obligation to any Securityholder, other than as expressly provided for herein;

 

(f)   the Owner Trustee shall not be liable for the default or misconduct of the Administrator, the Depositor, any Certificateholder, the Indenture Trustee, the Servicer or the Seller under any Basic Document or otherwise, and the Owner Trustee shall have no obligation or liability to perform the obligations of the Issuer under the Basic Documents that are required to be performed by the Administrator under the Administration Agreement, the Indenture Trustee under the Indenture or the Seller, the Servicer or the Depositor under the Sale and Servicing Agreement;

 

 

 

  

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(g)   the Owner Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Agreement, or to institute, conduct or defend any litigation under this Agreement or otherwise or in relation to any Basic Document, at the request, order or direction of any Certificateholders, unless such Certificateholders have offered to the Owner Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities that may be incurred by the Owner Trustee therein or thereby; and the right of the Owner Trustee to perform any discretionary act enumerated in any Basic Document shall not be construed as a duty, and the Owner Trustee shall not be answerable other than for its negligence, bad faith or willful misconduct in the performance of any such act;

 

(h)   the Owner Trustee shall have no responsibility for the accuracy of any information provided to Certificateholders or any other individual or entity that has been obtained from, or provided to the Owner Trustee by, any other Person; and

 

(i)   in the absence of negligence or bad faith on its part, the Owner Trustee may conclusively rely upon certificates or Opinions of Counsel furnished to the Owner Trustee and conforming to the requirements of this Agreement in determining the truthfulness of the statements and the correctness of the opinions contained therein; provided, however, that the Owner Trustee shall have examined such certificates or Opinions of Counsel so as to determine compliance of the same with the requirements of this Agreement.

 

Section 7.02.   Furnishing of Documents.  The Owner Trustee shall furnish to the Certificateholders, promptly upon receipt of a written request therefor, and at the expense of the related Certificateholders, (i) copies of the Basic Documents and (ii) copies of all reports, notices, requests, demands, certificates, financial statements and any other instruments furnished to the Owner Trustee under the Basic Documents.

 

Section 7.03.   Representations and Warranties.  The Owner Trustee hereby represents and warrants to the Depositor and the Certificateholders, that:

 

(a)   It is a Delaware corporation with trust powers duly organized and validly existing in good standing under the laws of the State of Delaware and meets the eligibility criteria set forth in Section 10.01; and it has all requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement.

 

(b)   It has taken all corporate action necessary to authorize the execution and delivery by it of this Agreement, and this Agreement will be executed and delivered by one of its officers who is duly authorized to execute and deliver this Agreement on its behalf.

 

(c)   Neither the execution nor the delivery by it of this Agreement, nor the consummation by it of the transactions contemplated hereby, nor compliance by it with any of the terms or provisions hereof will contravene any federal or Delaware law, governmental rule or regulation governing the banking or trust powers of the Owner Trustee or any judgment or order binding on it, constitute any default under its charter

 

  

  

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documents or bylaws or any indenture, mortgage, contract, agreement or instrument to which it is a party or by which any of its properties may be bound.

 

Section 7.04.   Reliance; Advice of Counsel.

 

(a)   The Owner Trustee shall incur no liability to anyone in acting upon any signature, instrument, notice, resolution, request, consent, order, certificate, report, opinion, bond or other document or paper believed by it to be genuine and believed by it to be signed by the proper party or parties.  The Owner Trustee may accept a certified copy of a resolution of the board of directors or other governing body of any corporate party as conclusive evidence that such resolution has been duly adopted by such body and that the same is in full force and effect.  As to any fact or matter the method of determination of which is not specifically prescribed herein, the Owner Trustee may for all purposes hereof rely on a certificate, signed by any Authorized Officer of the relevant party, as to such fact or matter, and such certificate shall constitute full protection to the Owner Trustee for any action taken or omitted to be taken by it in good faith in reliance thereon.

 

(b)   In the exercise or administration of the trusts hereunder and in the performance of its duties and obligations under this Agreement and to the extent expressly provided for under the other Issuer Basic Documents, the Owner Trustee may (i) act directly or through its agents or attorneys pursuant to agreements entered into with any of them, and the Owner Trustee shall not be liable for the conduct or misconduct of such agents or attorneys if such agents or attorneys shall have been selected by the Owner Trustee with reasonable care and (ii) consult with counsel, accountants and other skilled Persons to be selected with reasonable care and employed by it.  The Owner Trustee shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the written opinion or advice of any such counsel, accountants or other such Persons and not contrary to any Basic Document.

 

Section 7.05.   Not Acting in Individual Capacity.  Except as otherwise provided in this Article, in accepting the trusts hereby created, [_________________] acts solely as Owner Trustee hereunder and not in its individual capacity, and all Persons having any claim against the Owner Trustee by reason of the transactions contemplated by the Basic Documents shall look only to the Trust Property for payment or satisfaction thereof.

 

Section 7.06.   Owner Trustee Not Liable for Basic Documents or Certificates.  The recitals contained herein and in the Certificates (other than the signature and the certificate of authentication of the Owner Trustee on the Certificates) shall be taken as the statements of the Depositor, and the Owner Trustee assumes no responsibility for the correctness thereof.  The Owner Trustee makes no representations as to the validity or sufficiency of any Basic Document or the Certificates (in each case other than the signature and the certificate of authentication of the Owner Trustee on the Certificates and the representations and warranties in Section 7.03) or the Notes.  The Owner Trustee shall at no time have any responsibility or liability for or with respect to the legality, validity and enforceability of any Receivable, or the perfection and priority of any security interest created by any Receivable in any Financed Vehicle or the maintenance of any such perfection and priority, or for or with respect to the sufficiency of the Trust Property or its ability to generate the payments to be distributed to the Certificateholders under this Agreement or to the Noteholders under the Indenture, including the existence,

 

  

  

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condition and ownership of any Financed Vehicle; the existence and enforceability of any insurance thereon; the existence and contents of any Receivable on any computer or other record thereof; the validity of the assignment of any Receivable to the Issuer or of any intervening assignment; the completeness of any Receivable; the performance or enforcement of any Receivable; the compliance by the Depositor, the Seller or the Servicer with any warranty or representation made under any Basic Document or the accuracy of any such warranty or representation, or for any action of the Administrator, the Indenture Trustee or the Servicer taken in the name of the Owner Trustee.

 

Section 7.07.   Owner Trustee May Own Securities.  The Owner Trustee in its individual or any other capacity may become a Securityholder or pledgee of Certificates or Notes and may deal with the Depositor, the Administrator, the Indenture Trustee, the Seller and the Servicer in banking transactions with the same rights as it would have if it were not Owner Trustee.

 

  

  

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ARTICLE EIGHT

 

COMPENSATION AND INDEMNIFICATION OF OWNER TRUSTEE

 

Section 8.01.   Owner Trustee’s Fees and Expenses.  The Owner Trustee shall receive as compensation for its services hereunder such fees as have been separately agreed upon before the date hereof between the Servicer or Administrator and the Owner Trustee, and upon the formation of the Issuer, the Owner Trustee shall be entitled to be reimbursed, except as otherwise provided in the Basic Documents, by the Servicer or Administrator for its other reasonable expenses hereunder, including the reasonable compensation, expenses and disbursements of such agents, representatives, experts and counsel as the Owner Trustee may employ in connection with the exercise and performance of its rights and its duties hereunder.

 

Section 8.02.   Indemnification.  The Depositor shall be liable as primary obligor for, and shall indemnify the Indemnified Parties from and against, any and all Expenses, which may at any time be imposed on, incurred by, or asserted against the Owner Trustee or any other Indemnified Party in any way relating to or arising out of the Basic Documents, the Trust Property, the administration of the Trust Property or the action or inaction of the Owner Trustee hereunder; provided, however, that the Depositor shall not be liable for or required to indemnify an Indemnified Party from and against Expenses arising or resulting from any of the matters described in the third sentence of Section 7.01.  To the extent not paid, or caused to be paid, by the Depositor or the Administrator, any indemnity due and owing the Owner Trustee shall be paid in accordance with Section 2.08 of the Indenture.  The indemnities contained in this Section shall survive the resignation or termination of the Owner Trustee or the termination of this Agreement.  In the event of any claim, action or Proceeding for which indemnity will be sought pursuant to this Section, the Owner Trustee’s choice of legal counsel shall be subject to the approval of the Depositor, which approval shall not be unreasonably withheld.

 

Section 8.03.   Payments to the Owner Trustee.  Any amounts paid to the Owner Trustee pursuant to this Article from assets that are part of the Trust Property shall be deemed not to be a part of the Trust Property immediately after such payment.

 

 

 

  

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ARTICLE NINE

 

TERMINATION OF TRUST AGREEMENT

 

Section 9.01.   Termination of Trust Agreement.

 

(a)   This Agreement (other than the provisions of Article Eight) shall terminate and be of no further force or effect and the Issuer shall dissolve upon the earlier of (i) the payment to the Servicer, the Trustees and the Securityholders of all amounts required to be paid to them pursuant to the Indenture, the Sale and Servicing Agreement and Article Five, (ii) the Distribution Date next succeeding the month which is one year after the maturity or other liquidation of the last Receivable and the disposition of any amounts received upon liquidation of any property remaining in the Issuer or (iii) upon the purchase of the Receivables by the Servicer in connection with an Optional Purchase and retirement of the Securities.  The bankruptcy, liquidation, dissolution, death or incapacity of any Certificateholder shall not (i) operate to dissolve or terminate this Agreement or the Issuer, (ii) entitle such Certificateholder’s legal representatives or heirs to claim an accounting or to take any Proceeding in any court for a partition or winding up of all or any part of the Issuer or the Trust Property or (iii) otherwise affect the rights, obligations and liabilities of the parties hereto.

 

(b)   Except as provided in Section 9.01(a), neither the Depositor nor any Certificateholder shall be entitled to revoke, dissolve or terminate the Issuer.

 

(c)   Notice of any termination of the Issuer, specifying the Distribution Date upon which Certificateholders shall surrender their Certificates to the Owner Trustee for payment of the final distribution and cancellation, shall be given by the Owner Trustee to Certificateholders mailed within five Business Days of receipt of notice of such termination from the Servicer, stating (i) the Distribution Date upon or with respect to which final payment of the Certificates shall be made upon presentation and surrender of the Certificates at the office of the Owner Trustee therein designated, (ii) the amount of any such final payment and (iii) that the Record Date otherwise applicable to such Distribution Date is not applicable and that payments are being made only upon presentation and surrender of the Certificates at the office of the Owner Trustee therein specified.  The Owner Trustee shall give such notice to the Certificate Registrar (if other than the Owner Trustee) and the Paying Agent at the time such notice is given to Certificateholders.  Upon presentation and surrender of the Certificates, the Owner Trustee shall cause to be distributed to Certificateholders, subject to Section 3808 of the Delaware Statutory Trust Act, amounts distributable on such Distribution Date pursuant to Section 5.01.

 

(d)   In the event that all of the Certificateholders shall not surrender their Certificates for cancellation within six months after the date specified in the above mentioned written notice, the Owner Trustee shall give a second written notice to the remaining Certificateholders to surrender their Certificates for cancellation and receive the final distribution with respect thereto.  If within one year after the second notice all the Certificates shall not have been surrendered for cancellation, the Owner Trustee may take appropriate steps, or may appoint an agent to take appropriate steps, to contact the remaining Certificateholders concerning surrender of their Certificates and the cost thereof shall be paid out of the funds and other assets that shall remain subject to this Agreement.  Subject to applicable escheat laws, any funds remaining in the Issuer

 

 

 

  

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after exhaustion of such remedies shall be distributed by the Owner Trustee to the Seller, as Certificateholder.

 

(e)   Upon the winding up of the Issuer, in accordance with Section 3808 of the Delaware Statutory Trust Act, the Owner Trustee, at the expense of the Depositor, shall cause the Certificate of Trust to be cancelled by filing a certificate of cancellation with the Secretary of State in accordance with the provisions of Section 3810(d) of the Delaware Statutory Trust Act and the Issuer and this Agreement (other than Article Eight) shall terminate and be of no further force or effect.

 

  

  

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ARTICLE TEN

 

SUCCESSOR AND ADDITIONAL OWNER TRUSTEES

 

Section 10.01.   Eligibility Requirements for Owner Trustee.  The Owner Trustee shall at all times be (i) a corporation with trust powers organized under the laws of the United States or any State and satisfying the provisions of Section 3807(a) of the Delaware Statutory Trust Act, (ii) authorized to exercise corporate trust powers; having (or having a parent that has) a combined capital and surplus of at least $50,000,000 and be subject to supervision or examination by federal or State authorities and (iii) having (or having a parent that has) time deposits that are rated investment grade by [_____] and [_____] or, if it (or its parent) does not have such ratings, otherwise be acceptable to each Rating Agency.  If such corporation shall publish reports of condition at least annually pursuant to Applicable Law or to the requirements of the aforesaid supervising or examining authority, then for the purpose of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.  If at any time the Owner Trustee shall cease to be eligible in accordance with the provisions of this Section, the Owner Trustee shall resign immediately in the manner and with the effect specified in Section 10.02.

 

Section 10.02.   Resignation or Removal of Owner Trustee.  The Owner Trustee may at any time resign and be discharged from the trusts hereby created by giving written notice thereof to the Administrator and the Depositor, and will provide to the Depositor in writing and in form and substance reasonably satisfactory to the Depositor, all information reasonably requested by the Depositor in order to comply with its reporting obligation under the Exchange Act with respect to the resignation of the Owner Trustee.  Upon receiving such notice of resignation, the Administrator shall promptly appoint a successor Owner Trustee acceptable to the Depositor by written instrument, in duplicate, one copy of which instrument shall be delivered to the resigning Owner Trustee and one copy to the successor Owner Trustee.  If no successor Owner Trustee shall have been so appointed and have accepted appointment within 30 days after the giving of such notice of resignation, the resigning Owner Trustee may petition any court of competent jurisdiction for the appointment of a successor Owner Trustee.  Neither the Administrator nor the Depositor shall owe the outgoing Owner Trustee any expenses associated with the resignation of the outgoing Owner Trustee and the outgoing Owner Trustee shall not be responsible for any expenses associated with the appointment of a successor Owner Trustee.

 

If at any time the Owner Trustee shall (i) cease to be eligible in accordance with Section 10.01 and shall fail to resign after written request therefor by the Administrator, or if at any time the Owner Trustee shall be legally unable to act, (ii) be adjudged bankrupt or insolvent, or a receiver of the Owner Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Owner Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, (iii) fail to comply with any of its obligations under Section 10.02, 10.04 or 11.03, during the period that the Depositor is required to file Exchange Act Reports with respect to the Issuer and such failure is not remedied within the lesser of ten calendar days and the period of time in which the related Exchange Act Report is required to be filed (without taking into account any extensions) or (iv) otherwise become incapable of acting, then the Administrator or the Depositor may remove the Owner Trustee.  If the Administrator or Depositor shall remove the Owner Trustee under the authority of the immediately preceding

 

 

 

  

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sentence, the Administrator shall promptly appoint a successor Owner Trustee acceptable to the Depositor by written instrument, in duplicate, one copy of which instrument shall be delivered to the outgoing Owner Trustee so removed and one copy to the successor Owner Trustee, and shall pay all fees and expenses owed to the outgoing Owner Trustee.

 

Any resignation or removal of the Owner Trustee and appointment of a successor Owner Trustee pursuant to any of the provisions of this Section shall not become effective until acceptance of appointment by the successor Owner Trustee pursuant to Section 10.03 and payment of all fees and expenses owed to the outgoing Owner Trustee.

 

Section 10.03.   Successor Owner Trustee.  Any successor Owner Trustee appointed pursuant to Section 10.02 shall execute, acknowledge and deliver to the Administrator and to its predecessor Owner Trustee an instrument accepting such appointment under this Agreement and deliver to the Depositor in writing and in form and substance reasonably satisfactory to the Depositor, all information reasonably requested by the Depositor in order to comply with its reporting obligations under the Exchange Act with respect to the successor Owner Trustee, and thereupon, subject to the payment of all fees and expenses owed to the predecessor Owner Trustee, the resignation or removal of the predecessor Owner Trustee shall become effective, and such successor Owner Trustee, without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and obligations of its predecessor under this Agreement, with like effect as if originally named as Owner Trustee.  The predecessor Owner Trustee shall upon payment of its fees and expenses deliver to the successor Owner Trustee all documents and statements and monies held by it under this Agreement and the Administrator and the predecessor Owner Trustee shall execute and deliver such instruments and do such other things as may reasonably be required for fully and certainly vesting and confirming in the successor Owner Trustee all such rights, powers, duties and obligations.

 

No successor Owner Trustee shall accept appointment as provided in this Section unless at the time of such acceptance such successor Owner Trustee shall be eligible pursuant to Section 10.01.  Any successor Owner Trustee shall promptly file an amendment to the Certificate of Trust as required by the Delaware Statutory Trust Act.

 

Upon acceptance of appointment by a successor Owner Trustee pursuant to this Section, the Administrator shall mail notice thereof to the Depositor, the Certificateholders, the Indenture Trustee and the Rating Agencies.  If the Administrator shall fail to mail such notice within ten days after acceptance of such appointment by the successor Owner Trustee, the successor Owner Trustee shall cause such notice to be mailed at the expense of the Administrator.

 

Section 10.04.   Merger or Consolidation of Owner Trustee.

 

(a)   If the Owner Trustee consolidates with, merges or converts into, or transfers all or substantially all its corporate trust business or assets to, another entity, the resulting, surviving or transferee corporation or banking association without any further act, except the filing of an amendment to the Certificate of Trust, if required under the Delaware Statutory Trust Act, shall be the successor Owner Trustee; provided, however, that such corporation or banking association must be otherwise qualified and eligible under Section 10.01.  The Owner Trustee shall (i) provide the Rating Agencies with written notice as soon as practicable after a public

 

  

  

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announcement is made regarding any such transaction, (ii) file an amendment to the Certificate of Trust as required by Section 10.03 (if required under the Delaware Statutory Trust Act) and (iii) provide the Depositor in writing and in form and substance reasonably satisfactory to the Depositor, all information reasonably requested by the Depositor in order to comply with its reporting obligation under the Exchange Act with respect to the successor Owner Trustee.

 

(b)   If any of the Certificates shall have been authenticated but not delivered at the time such successor or successors by consolidation, merger or conversion to the Owner Trustee shall succeed to the trusts created by this Agreement, any such successor to the Owner Trustee may adopt the certificate of authentication of any predecessor trustee and deliver such Certificates so authenticated.  If any of the Certificates shall not have been authenticated upon such succession, any such successor to the Owner Trustee may authenticate such Certificates either in the name of any predecessor trustee or in the name of the successor to the Owner Trustee.  In all such cases such certificates shall have the full force which the Certificates or this Agreement provide that the certificate of the Owner Trustee shall have.

 

Section 10.05.   Appointment of Co-Trustee or Separate Trustee.  Notwithstanding any other provision of this Agreement, at any time, for the purpose of meeting any legal requirement of any jurisdiction in which any part of the Trust Property or any Financed Vehicle may at the time be located, the Administrator and the Owner Trustee acting jointly shall have the power and shall execute and deliver all instruments to appoint one or more Persons approved by the Administrator and Owner Trustee to act as co-trustee, jointly with the Owner Trustee, or as separate trustee or separate trustees, of all or any part of the Trust Property, and to vest in such Person, in such capacity and for the benefit of the Certificateholders, such title to the Trust Property or any part thereof and, subject to the other provisions of this Section, such powers, duties, obligations, rights and trusts as the Administrator and the Owner Trustee may consider necessary or desirable.  If the Administrator shall not have joined in such appointment within 15 days after the receipt by it of a request so to do, the Owner Trustee alone shall have the power to make such appointment.  No co-trustee or separate trustee under this Agreement shall be required to meet the terms of eligibility as a successor Owner Trustee pursuant to Section 10.01, except that such co-trustee or successor trustee shall be acceptable to each Rating Agency, and no notice of the appointment of any co-trustee or separate trustee shall be required pursuant to Section 10.03.

 

Each separate trustee and co-trustee shall, to the extent permitted by Applicable Law, be appointed and act subject to the following provisions and conditions:

 

(a)   all rights, powers, duties and obligations conferred or imposed upon the Owner Trustee shall be conferred or imposed upon and exercised or performed by the Owner Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act separately without the Owner Trustee joining in such act), except to the extent that under any Applicable Law of any jurisdiction in which any particular act or acts are to be performed, the Owner Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and obligations (including the holding of title to the Trust Property or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of the Owner Trustee;

 

  

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(b)   no trustee under this Agreement shall be personally liable by reason of any act or omission of any other trustee under this Agreement; and

 

(c)   the Administrator and the Owner Trustee acting jointly may at any time accept the resignation of or remove any separate trustee or co-trustee.

 

Any notice, request or other writing given to the Owner Trustee shall be deemed to have been given to each of the then-separate trustees and co-trustees, as effectively as if given to each of them.  Every instrument appointing any separate trustee or co-trustee shall refer to this Agreement and the conditions of this Article.  Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Owner Trustee or separately, as may be provided therein, subject to all the provisions of this Agreement, specifically including every provision of this Agreement relating to the conduct of, affecting the liability of, or affording protection to, the Owner Trustee.  Each such instrument shall be filed with the Owner Trustee and a copy thereof given to the Administrator.

 

Any separate trustee or co-trustee may at any time appoint the Owner Trustee as its agent or attorney-in-fact with full power and authority, to the extent not prohibited by Applicable Law, to do any lawful act under or in respect of this Agreement on its behalf and in its name.  If any separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Owner Trustee, to the extent permitted by Applicable Law, without the appointment of a new or successor co-trustee or separate trustee.

 

  

  

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ARTICLE ELEVEN

 

REGULATION AB

 

Section 11.01.   Intent of the Parties; Reasonableness.  The parties hereto acknowledge and agree that the purpose of this Article is to facilitate compliance by the Depositor with the provisions of Regulation AB and related rules and regulations of the Commission.  The Depositor shall not exercise its right to request delivery of information or other performance under these provisions other than in good faith, or for purposes other than the Depositor’s compliance with the Securities Act, the Exchange Act and the rules and regulations of the Commission thereunder (or the provision in a private offering of disclosure comparable to that required under the Securities Act).  The Owner Trustee agrees to cooperate in good faith with any reasonable request by the Depositor for information regarding the Owner Trustee which is required in order to enable the Depositor to comply with the provisions of Regulation AB, including Items 1109(a), 1109(b), 1117 and 1119 of Regulation AB as such items relate to the Owner Trustee or to the Owner Trustee’s obligations under this Agreement.

 

Section 11.02.   Representations and Warranties.  The Owner Trustee represents that:

 

(i) there are no affiliations, relating to the Owner Trustee with respect to any Item 1119 Party;

 

(ii) other than the transactions contemplated by the Basic Documents, there are no relationships or transactions with respect to any Item 1119 Party and the Owner Trustee that are outside the ordinary course of business or on terms other than would be obtained in an arm’s-length transaction with an unrelated third party that are material to the investors’ understanding of the Notes; and

 

(iii) there are no legal Proceedings pending, or known to be contemplated by Governmental Authorities, against the Owner Trustee, or of which the property of the Owner Trustee is subject, that are material to the Noteholders.

 

Section 11.03.   Information to Be Provided by the Owner Trustee.

 

(a) For so long as the Depositor is required to report under Regulation AB, the Owner Trustee shall, as promptly as practicable, notify the Depositor, in writing, of (i) the commencement of, a material development in or, if applicable, the termination of, any and all Proceedings against the Owner Trustee or any and all Proceedings of which any property of the Owner Trustee is the subject, that is material to the Noteholders and (ii) any such Proceedings known to be contemplated by Governmental Authorities.  The Owner Trustee shall also notify the Depositor, in writing, as promptly as practicable following notice to or discovery by a Responsible Officer of the Owner Trustee of any material changes to Proceedings described in the preceding sentence.  In addition, the Owner Trustee will furnish to the Depositor, in writing, the necessary disclosure regarding the Owner Trustee describing such Proceedings required to be disclosed under Item 1117 of Regulation AB, for inclusion in reports filed by or on behalf of the Depositor pursuant to the Exchange Act.

 

 

 

  

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(b)   For so long as the Depositor is required to report under Regulation AB, the Owner Trustee shall (i) on or before the fifth Business Day of each January, April, July and October, provide to the Depositor such information regarding the Owner Trustee as is required for the purpose of compliance with Items 1109(a), 1109(b) and 1119 of Regulation AB; provided, however, the Owner Trustee shall not be required to provide such information in the event that there has been no change to the information previously provided by the Owner Trustee to the Depositor, and (ii) as promptly as practicable following notice to or discovery by a Responsible Officer of the Owner Trustee of any changes to such information, provide to the Depositor, in writing, such updated information.  Such information shall include, at a minimum:

 

(A) the Owner Trustee’s name and form of organization;

 

(B) a description of the extent to which the Owner Trustee has had prior experience serving as a trustee for asset-backed securities transactions involving auto finance receivables; and

 

(C) a description of any affiliation between the Owner Trustee and any of the following parties to a Securitization Transaction, as such parties are identified by name to the Owner Trustee by the Depositor in writing in advance of such Securitization Transaction: (1) the sponsor, (2) any depositor, (3) the issuing entity, (4) any servicer or subservicer, (5) any other trustee, (6) any originator, (7) any significant obligor, (8) any enhancement or support provider and (9) any other material party related to any Securitization Transaction.

 

In addition, the Owner Trustee shall provide a description of whether there is, and if so the general character of, any business relationship, agreement, arrangement, transaction or understanding between the Owner Trustee and any above-listed party that is entered into outside the ordinary course of business or is on terms other than would be obtained in an arm’s-length transaction with an unrelated third party, apart from the Securitization Transactions, that currently exists or that existed during the past two years and that is material to an investor’s understanding of the Notes.

 

  

  

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ARTICLE TWELVE

 

MISCELLANEOUS

 

Section 12.01.   Supplements and Amendments.

 

(a)   This Agreement may be amended from time to time by the parties hereto, without the consent of any Securityholders, (i) to cure any ambiguity, to correct or supplement any provision herein that may be inconsistent with any other provision herein or in any offering document used in connection with the initial offer and sale of the Notes or the Certificates and (ii) for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement which will not be inconsistent with other provisions of this Agreement; provided, however, that no such amendment (A) may materially adversely affect the interests of any Securityholders as evidenced by an Opinion of Counsel to the Servicer delivered to the Trustees [or, with respect to the Notes, by a letter from each Rating Agency to the effect that the amendment would not result in a qualification, downgrading or withdrawal of its then current rating of any Class of Notes] and (B) will be permitted unless an Opinion of Counsel is delivered to the Owner Trustee to the effect that such amendment will not cause the Issuer to be characterized for federal income tax purposes as an association or publicly-traded partnership taxable as a corporation or otherwise have any material adverse impact on the federal income taxation of any Notes Outstanding or outstanding Certificates.

 

(b)   This Agreement may be amended from time to time by the Depositor and the Owner Trustee with prior written notice to the Rating Agencies and with the consent of the Holders of Notes evidencing not less than 662⁄3% of the Note Balance or, if the Notes have been paid in full, the Holders of Certificates evidencing not less than 51% of the aggregate Certificate Percentage Interest, for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, this Agreement or modifying in any manner the rights of the Securityholders; provided, however, that no such amendment will be permitted unless an Opinion of Counsel is delivered to the Owner Trustee to the effect that such amendment will not cause the Issuer to be characterized for federal income tax purposes as an association or a publicly traded partnership taxable as a corporation or otherwise have any material adverse impact on the federal income taxation of any Notes Outstanding or outstanding Certificates; and, provided further, that no such amendment may:

 

(i) increase or reduce in any manner the amount of, or accelerate or delay the timing of, or change the allocation or priority of, collections of payments on or in respect of the Receivables or distributions that are required to be made for the benefit of the Securityholders without the consent of all Securityholders adversely affected by such amendment; or

 

(ii) reduce the percentage of the Note Balance or the percentage of the aggregate Certificate Percentage Interest the consent of the Noteholders or Certificateholders, as applicable, of which is required for any amendment to this Agreement without the consent of all the Securityholders adversely affected by the amendment.

 

 

 

  

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(c)   An amendment to this Agreement shall be deemed not to materially adversely affect the interests of any Securityholders if the Person requesting such amendment obtains and delivers to the Owner Trustee (i) an Opinion of Counsel to that effect or (ii) with respect to the Notes, a letter from each Rating Agency to the effect that the amendment would not result in a qualification, downgrading or withdrawal of its then-current rating of any Class of Notes.

 

(d)   It shall not be necessary for the consent of the Certificateholders, the Noteholders or the Indenture Trustee pursuant to this Section to approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof.  The manner of obtaining such consents (and any other consents of Certificateholders provided for in this Agreement or in any other Basic Document) and of evidencing the authorization of the execution thereof by Certificateholders shall be subject to such reasonable requirements as the Owner Trustee may prescribe.  Promptly after the execution of any amendment to the Certificate of Trust, the Owner Trustee shall file such amendment or cause such amendment to be filed with the Secretary of State.

 

(e)   Promptly after the execution of any such amendment or consent, the Owner Trustee shall furnish written notification of the substance of such amendment or consent to each Certificateholder and the Depositor shall furnish written notice of the substance of such amendment or consent to the Indenture Trustee and the Rating Agencies.

 

(f)   In connection with the execution of any amendment to this Agreement or any amendment to any other agreement to which the Issuer is a party, the Owner Trustee shall be entitled to receive and shall be fully protected in relying upon an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement (or such other agreement) and that all conditions precedent in this Agreement (or such other agreement) to the execution and delivery of such amendment have been satisfied.  The Owner Trustee may, but shall not be required to, execute any amendment which, as evidenced by an Opinion of Counsel, adversely affects the Owner Trustee’s rights, duties and liabilities under this Agreement.

 

Section 12.02.   Limitations on Rights of Others.  The provisions of this Agreement are solely for the benefit of the Owner Trustee, the Depositor, the Certificateholders, the Administrator and, to the extent expressly provided herein, the Indenture Trustee and the Noteholders, and nothing in this Agreement or in the Certificates, whether express or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim in the Trust Property or under or in respect of this Agreement or any covenants, conditions or provisions contained herein.

 

Section 12.03.   Notices.  Unless otherwise specified in this Agreement, all notices, requests, demands, consents, waivers or other communications to or from the parties to this Agreement will be in writing.  Notices, requests, demands, consents and other communications will be deemed to have been given and made, (i) upon delivery or, in the case of a letter mailed via registered first class mail, postage prepaid, three days after deposit in the mail and (ii) in the case of (a) a facsimile, when receipt is confirmed by telephone or by reply e-mail or reply facsimile from the recipient, (b) an e-mail, when receipt is confirmed by telephone or by reply e-mail from the recipient and (c) an electronic posting to a password-protected website, upon printed confirmation of the recipient’s access to such password-protected website, or when

 

  

  

35

  

notification of such electronic posting is confirmed in accordance with clauses (ii)(b) and (ii)(c) above.  Unless otherwise specified in this Agreement, any such notice, request, demand, consent or other communication will be delivered or addressed, in the case of (i) the Owner Trustee, at the Corporate Trust Office (e-mail: [___________], (ii) the Depositor, at 36455 Corporate Drive, Farmington Hills, Michigan 48331 (e-mail: [________________], facsimile: (_____________), (iii) the Indenture Trustee, at the Corporate Trust Office, Attention: [_________________________], or (iv) as to each of the foregoing, at such other address as shall be designated by written notice to the other parties.

 

Section 12.04.   Severability.  If any one or more of the covenants, agreements, provisions or terms of this Agreement or the Certificates shall be for any reason whatsoever held invalid, illegal or unenforceable, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions and terms of this Agreement and the Certificates and shall in no way affect or impair the validity or enforceability of the other covenants, agreements, provisions and terms of this Agreement or the Certificates or the rights of the Certificateholders.

 

Section 12.05.   Counterparts.  This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

 

Section 12.06.   Successors and Assigns.  All covenants and agreements contained herein and in the Certificates shall be binding upon, and inure to the benefit of, the Depositor, the Owner Trustee and the Certificateholders and their respective successors and permitted assigns, all as herein provided.  Any request, notice, direction, consent, waiver or other instrument or action by a Certificateholder shall bind its successors and assigns.

 

Section 12.07.   No Petition.  The Owner Trustee and the Depositor, by entering into this Agreement, each Certificateholder, by accepting a Certificate or a beneficial interest therein, the Indenture Trustee and each Noteholder or beneficial owner of Notes, by accepting the benefits of this Agreement, hereby covenant and agree that they will not at any time institute against, or join any other Person in instituting against, the Depositor or the Issuer any bankruptcy, reorganization, arrangement, insolvency or liquidation Proceedings or other Proceedings under any Insolvency Law in connection with any obligations relating to the Certificates, the Notes or any Basic Document and agrees that it will not cooperate with or encourage others to file a bankruptcy petition against the Depositor or the Issuer during the same period.

 

Section 12.08.   Table of Contents and Headings.  The Table of Contents and the various headings in this Agreement are included for convenience only and will not affect the meaning or interpretation of any provision of this Agreement.

 

Section 12.09.   GOVERNING LAW.  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

  

  

36

  

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

 

 

	 	DAIMLER RETAIL RECEIVABLES LLC 

  as Depositor

	 

 

	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name: 	 
	 	 	Title:   	 
	 	 	 	 

 

	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name: 	 
	 	 	Title:   	 
	 	 	 	 

 

	
  

	
[_______________________],

  as Owner Trustee

 

	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name: 	 
	 	 	Title:   	 
	 	 	 	 

 

 

 

  

37

  

EXHIBIT A

 

 

	 	  

THIS ASSET BACKED CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE NOTES TO THE EXTENT DESCRIBED IN THE TRUST AGREEMENT, THE SALE AND SERVICING AGREEMENT AND THE INDENTURE REFERRED TO HEREIN.

 

THIS ASSET BACKED CERTIFICATE DOES NOT REPRESENT AN INTEREST IN OR AN OBLIGATION OF DAIMLER RETAIL RECEIVABLES LLC, MERCEDES-BENZ FINANCIAL SERVICES USA LLC OR ANY OF THEIR RESPECTIVE AFFILIATES.

 

THIS ASSET BACKED CERTIFICATE MAY NOT BE ACQUIRED BY OR WITH PLAN ASSETS OF AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN OR ARRANGEMENT THAT IS SUBJECT TO SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE.

	 
	 	 	 
	REGISTERED 	 	NO.  R-1

 

MERCEDES-BENZ AUTO RECEIVABLES TRUST 201[_]-[_]

ASSET BACKED CERTIFICATE

 

evidencing an undivided beneficial interest in the property of Mercedes-Benz Auto Receivables Trust 201[_]-[_], a Delaware statutory trust (the “Issuer”), which property includes a pool of motor vehicle installment sales contracts and installment loans secured by new and pre-owned motor vehicles sold by Mercedes-Benz Financial Services USA LLC, a Delaware limited liability company (“MBFS USA”), to Daimler Retail Receivables LLC, a Delaware limited liability company (“Daimler Receivables” or the “Depositor”), and sold by the Depositor to the Issuer.  The property of the Issuer has been pledged by the Issuer to [_________________], a national banking association, as trustee (the “Indenture Trustee”), pursuant to an indenture, dated as of [__________] (as amended, restated, supplemented or otherwise modified from time to time, the “Indenture”), between the Issuer and the Indenture Trustee, to secure the payment of the Notes issued thereunder.

 

This certifies that [____________________] is the registered owner of a 100% Certificate Percentage Interest nonassessable, fully paid, undivided beneficial interest in the Issuer.  The Issuer is governed by a second amended and restated trust agreement dated as of [__________] (as amended, restated, supplemented or otherwise modified from time to time, the “Trust Agreement”), between the Depositor and [_________________], as trustee (in such capacity, and not in its individual capacity, the “Owner Trustee”), a summary of certain of the pertinent provisions of which is set forth below.  Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed in Appendix A to the sale and servicing agreement, dated as of [__________] (as amended, restated, supplemented or otherwise modified from time to time, the “Sale and Servicing Agreement”), among the Issuer, the Depositor and MBFS USA, as seller (in such capacity, the “Seller”), and as servicer (in such capacity, the “Servicer”).

 

 

  

A-1

  

This Certificate is issued under and is subject to the terms, provisions and conditions of the Trust Agreement, to which Trust Agreement the registered holder of this Certificate (the “Certificateholder”) by virtue of the acceptance hereof assents and by which such Certificateholder is bound.  The property of the Issuer primarily includes: (i) a pool of motor vehicle installment sales contracts and installment loans originated in connection with the sale of new or pre-owned motor vehicles (the “Receivables”), (ii) all amounts received on or in respect of the Receivables after the Cutoff Date, (iii) the security interests in the Financed Vehicles granted by the Obligors pursuant to the Receivables and (iv) all proceeds of the foregoing.

 

THE RIGHTS OF THE ISSUER IN THE FOREGOING PROPERTY OF THE ISSUER HAVE BEEN PLEDGED TO THE INDENTURE TRUSTEE TO SECURE THE PAYMENT OF THE NOTES.

 

Pursuant to the Trust Agreement, there will be distributed on each Distribution Date to the Person in whose name this Certificate is registered at the close of business on the Business Day preceding such Distribution Date such Certificateholder’s Certificate Percentage Interest in the amount to be distributed to Certificateholders on such Distribution Date.  “Distribution Date” means the 15th day of each month or, if such 15th day is not a Business Day, the following Business Day, commencing on [_____] 15, [_____].

 

THE HOLDER OF THIS CERTIFICATE ACKNOWLEDGES AND AGREES THAT ITS RIGHTS TO RECEIVE DISTRIBUTIONS IN RESPECT OF THIS CERTIFICATE ARE SUBORDINATED TO THE RIGHTS OF THE NOTEHOLDERS AS DESCRIBED IN THE TRUST AGREEMENT, THE SALE AND SERVICING AGREEMENT AND THE INDENTURE.

 

It is the intent of the Depositor, the Owner Trustee, the Seller, the Servicer and the Certificateholders that, for purposes of federal income taxes, State and local income taxes and any other income taxes the Issuer will be treated as either an entity that is disregarded as separate from the beneficial owner of the equity in the Issuer if there is only one such owner, or as a partnership (other than an association or publicly traded partnership) if there are two or more such owners.  The Depositor and any other Certificateholders, by acceptance of a Certificate, agree with the foregoing characterization of the Certificates for such tax purposes and further agree to take no action inconsistent therewith.

 

Each Certificateholder, by its acceptance of a Certificate or a beneficial interest therein, covenants and agrees that such Certificateholder will not at any time institute against the Depositor or the Issuer, or join in any institution against the Depositor or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation Proceedings or other Proceedings under any Insolvency Law in connection with any obligations relating to the Notes, the Certificates or any Basic Document and agrees that it will not cooperate with or encourage others to file a bankruptcy petition against the Depositor or the Issuer during the same period.

 

Distributions on this Certificate will be made as provided in the Trust Agreement by the Paying Agent by wire transfer or check mailed to the Certificateholder of record in the Certificate Register without the presentation or surrender of this Certificate or the making of any notation hereon.  Except as otherwise provided in the Trust Agreement and notwithstanding the

 

 

  

A-2

  

above, the final distribution on this Certificate will be made after due notice by the Owner Trustee of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency of the Owner Trustee maintained for that purpose in Wilmington, Delaware.

 

Reference is hereby made to the further provisions of this Certificate set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if fully set forth on the face of this Certificate.

 

Unless the certificate of authentication hereon has been executed by an Authorized Officer of the Owner Trustee, by manual signature, this Certificate shall not entitle the Holder hereof to any benefit under the Trust Agreement or the Sale and Servicing Agreement or be valid for any purpose.

 

THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

 

  

A-3

  

IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Issuer and not in its individual capacity, has caused this Certificate to be duly executed as of the date set forth below.

 

 

	
  

	
Dated: _____, [_____]

	
MERCEDES-BENZ AUTO RECEIVABLES TRUST 201[_]-[_],

 

	
  

	 By:	
[_________________],

not in its individual capacity but solely as 

Owner Trustee

 

 

	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name: 	 
	 	 	Title:   	 
	 	 	 	 

 

OWNER TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Certificates referred to in the within-mentioned Trust Agreement.

 

	
  

	
Dated: _____, [_____]

	
[_________________],

not in its individual capacity but solely as Owner 

Trustee

 

 

	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name: 	 
	 	 	Title:   	 
	 	 	 	 

 

 

  

A-4

  

[REVERSE OF CERTIFICATE]

 

This Certificate does not represent an obligation of, or an interest in, the Depositor, the Seller, the Servicer, the Administrator, the Owner Trustee or any of their respective Affiliates, and no recourse may be had against such parties or their assets, except as may be expressly set forth or contemplated herein, in the Trust Agreement or in the other Basic Documents.  In addition, this Certificate is not guaranteed by any Governmental Authority and is limited in right of payment to certain collections with respect to the Receivables (and certain other amounts), all as more specifically set forth herein and in the Indenture and the Sale and Servicing Agreement.

 

The Trust Agreement permits the Depositor and the Owner Trustee, on behalf of the Issuer, with certain exceptions therein provided, to amend from time to time certain terms and conditions set forth in the Trust Agreement without the consent of the Certificateholders.  The Trust Agreement also permits the Depositor and the Owner Trustee, on behalf of the Issuer, with certain exceptions as therein provided, to amend certain terms and conditions set forth in the Trust Agreement with the consent of the Holders of Notes evidencing not less than 662⁄3% of the Note Balance and the Holders of Certificates evidencing not less than 51% of the aggregate Certificate Percentage Interest.  Any such consent by the Certificateholder shall be conclusive and binding on such Certificateholder and on all future Certificateholders and of any Certificate issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent is made upon this Certificate.

 

As provided in the Trust Agreement and subject to certain limitations therein set forth, the Transfer of this Certificate may be registered in the Certificate Register upon surrender of this Certificate for registration of Transfer at the Corporate Trust Office and a written instrument of transfer in form satisfactory to the Owner Trustee and the Certificate Registrar duly executed by the Certificateholder or such Certificateholder’s attorney duly authorized in writing, and thereupon one or more new Certificates in any authorized denomination and in the same aggregate Certificate Percentage Interest in the Issuer will be issued to the designated transferee or transferees.  No service charge shall be made for any registration of Transfer or exchange of Certificates, but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection therewith.  The initial Certificate Registrar appointed under the Trust Agreement is the Owner Trustee.

 

Each Certificateholder, by its acceptance of a Certificate, shall be deemed to have represented and warranted that such Certificateholder is not an (i) employee benefit plan or arrangement subject to Title I of ERISA, a plan subject to Section 4975 of the Code or any entity whose underlying assets include plans assets by reason of a plan’s investment in the entity (a “Benefit Plan”), nor a person acting on behalf of a Benefit Plan nor using the assets of a Benefit Plan to effect the transfer of such Certificate, or (ii) insurance company purchasing a Certificate with funds contained in an “insurance company general account” (as defined in Section V(e) of PTCE 95-60) that includes the assets of a Benefit Plan for purposes of the Plan Asset Regulation.

 

Any Person who is not an Affiliate of the Seller and acquires more than 49.9% of the Certificates will be deemed to represent that it is not a party in interest (within the meaning of ERISA) or a disqualified person (within the meaning of Section 4975(e)(2) of the Code) with respect to any Benefit Plan, other than a Benefit Plan that it sponsors for the benefit of its

 

 

  

A-5

  

employees, and that no Benefit Plan with respect to which it is a party in interest has or will acquire any interest in the Notes.

 

The Certificates are issuable only in registered form in denominations as provided in the Trust Agreement, subject to certain limitations therein set forth.

 

The Owner Trustee, the Certificate Registrar and any Paying Agent may treat the Person in whose name this Certificate is registered in the Certificate Register (as of the day of determination) as the owner of this Certificate for the purpose of receiving distributions pursuant to the Trust Agreement and for all other purposes whatsoever, and none of the Owner Trustee, the Certificate Registrar or any Paying Agent shall be bound by any notice to the contrary.

 

The Trust Agreement, with certain exceptions therein provided, shall terminate and be of no further force or effect and the Issuer shall dissolve upon the earlier of (i) the payment to the Servicer, the Trustees and the Securityholders of all amounts required to be paid to them pursuant to the terms of the Indenture, the Sale and Servicing Agreement and the Trust Agreement, (ii) the Distribution Date next succeeding the month which is one year after the maturity or other liquidation of the last Receivable and the disposition of any amounts received upon liquidation of any property remaining in the Issuer or (iii) upon the purchase of the Receivables by the Servicer in connection with an Optional Purchase and retirement of the Securities.

 

 

  

A-6

  

ASSIGNMENT

 

SOCIAL SECURITY NUMBER

OR OTHER IDENTIFICATION

NUMBER OF ASSIGNEE: ________________

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto _________________________________________________________________________

_____________________________________________________________________________

(name and address of assignee)

the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints ________________________, attorney, to transfer said Certificate on the Certificate Register, with full power of substitution in the premises.

Dated:

 

 

	 	 	 	 
	
 

	
 

	 	 */
	 	 	 	 
	 	 	
Signature Guaranteed:

	 
	 	 	 	*/
	 	 	 	 

 

 

	
*/

	
NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Certificate in every particular, without alteration, enlargement or any change whatsoever.  Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Certificate Registrar.

 

 

 

  

A-7

  

EXHIBIT B

 

STATE OF DELAWARE

CERTIFICATE OF AMENDMENT TO

CERTIFICATE OF TRUST

 

 

Pursuant to Title 12, Section 3810(b) of the Delaware Statutory Trust Act, the undersigned Trust executed the following Certificate of Amendment:

 

	
1.

	
Name. The name of the statutory trust is Mercedes-Benz Auto Receivables Trust 201[_]-[_].

	 	 
	 2. 	This Certificate of Amendment shall be effective upon filing.

 

IN WITNESS WHEREOF, the undersigned has executed this Certificate on the ____th day of ____, 20__.

 

 

	
  

	 By:	
[_________________],

             as Trustee

 

 

	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name: 	 
	 	 	Title:   	 
	 	 	 	 

 

 

 

  

B-1

  

 

EXHIBIT C

 

FORM OF REPURCHASE REQUEST NOTICE

 

 

___________, 201_

 

Mercedes-Benz Financial Services USA LLC

36455 Corporate Drive

Farmington Hills, Michigan  48331-3552

Attention:  [_____]

 

	
  

	
Re:

	
Mercedes-Benz Auto Receivables Trust 201[_]-[_] Noteholder Request to 

Repurchase Receivables

 

 

Reference is hereby made to (i) the Indenture dated as of [__________] (the “Indenture”) between Mercedes-Benz Auto Receivables Trust 201[_]-[_], as issuer (the “Issuer”), and [_________________], as indenture trustee (the “Indenture Trustee”), and (ii) the Amended and Restated Trust Agreement of the Issuer, dated as of [__________], between Daimler Retail Receivables LLC, as depositor (the “Depositor”), and [_________________], as owner trustee (in such capacity, the “Owner Trustee”).   Capitalized terms used but not defined herein shall have the meanings given them in the Indenture.

 

[During the period from and including ____, 201_ to but excluding  ____, 201_, the Owner Trustee received no requests from Noteholders requesting that Receivables be repurchased by the Seller pursuant to Section 2.05 of the Sale and Servicing Agreement or Section 3.03(c) of the Receivables Purchase Agreement.]

 

[During the period from and including ____, 201_ to but excluding  ____, 201_, the Owner Trustee received one or more requests from Noteholders requesting that Receivables be repurchased by the Seller pursuant to Section 2.05 of the Sale and Servicing Agreement or Section 3.03(c) of the Receivables Purchase Agreement.  The details of such requests are set forth below:]

 

	
Date of Request

	
Number of Receivables

Subject to Request

	
Aggregate Principal Balance of Receivables Subject to Request

	  	  	  
	  	  	  
	  	  	  

 

 

 

  

C-1

  

 

 

	 	 	[_________________], not in its individual capacity but 

solely as Owner Trustee

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name: 	 
	 	 	Title:   	 
	 	 	 	 

 

 

C-2

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