Document:

Exhibit 10.1

 

REVOLVING CREDIT
AGREEMENT

 

dated as of
June 28, 2006

 

among

 

VORNADO REALTY
L.P.,

as Borrower,

 

VORNADO REALTY
TRUST,

as General
Partner,

 

THE BANKS
SIGNATORY HERETO,

each as a Bank,

 

JPMORGAN
CHASE  BANK, N.A.,

as Administrative
Agent,

 

BANK OF AMERICA,
N.A.

and

CITICORP NORTH
AMERICA, INC.,

as Syndication
Agents,

 

and

 

DEUTSCHE BANK
TRUST COMPANY AMERICAS

and

LASALLE BANK
NATIONAL ASSOCIATION 

and

UBS LOAN FINANCE
LLC,

as Documentation Agents

 

J.P. MORGAN
SECURITIES INC.

and

BANK OF AMERICA
SECURITIES, L.L.C., 

Lead Arrangers and
Bookrunners

 

 

TABLE OF CONTENTS

 

 

 

 

	
  

  	
   

  	
  Page

  
	
  ARTICLE I DEFINITIONS; ETC.

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  SECTION 1.02.

  	
   

  	
  Accounting Terms

  	
   

  	
  17

  
	
  SECTION 1.03.

  	
   

  	
  Computation of Time Periods

  	
   

  	
  17

  
	
  SECTION 1.04.

  	
   

  	
  Rules of Construction

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II THE LOANS

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
   

  	
  Ratable Loans; Bid Rate Loans

  	
   

  	
  17

  
	
  SECTION 2.02.

  	
   

  	
  Bid Rate Loans

  	
   

  	
  18

  
	
  SECTION 2.03.

  	
   

  	
  Swingline Loan Subfacility

  	
   

  	
  21

  
	
  SECTION 2.04.

  	
   

  	
  Advances, Generally

  	
   

  	
  23

  
	
  SECTION 2.05.

  	
   

  	
  Procedures for Advances

  	
   

  	
  24

  
	
  SECTION 2.06.

  	
   

  	
  Interest Periods; Renewals

  	
   

  	
  25

  
	
  SECTION 2.07.

  	
   

  	
  Interest

  	
   

  	
  25

  
	
  SECTION 2.08.

  	
   

  	
  Fees

  	
   

  	
  25

  
	
  SECTION 2.09.

  	
   

  	
  Notes

  	
   

  	
  25

  
	
  SECTION 2.10.

  	
   

  	
  Prepayments

  	
   

  	
  26

  
	
  SECTION 2.11.

  	
   

  	
  Method of Payment

  	
   

  	
  27

  
	
  SECTION 2.12.

  	
   

  	
  Elections, Conversions or Continuation of Loans

  	
   

  	
  27

  
	
  SECTION 2.13.

  	
   

  	
  Minimum Amounts

  	
   

  	
  28

  
	
  SECTION 2.14.

  	
   

  	
  Certain Notices Regarding Elections, Conversions and
  Continuations of Loans

  	
   

  	
  28

  
	
  SECTION 2.15.

  	
   

  	
  Intentionally Omitted

  	
   

  	
  28

  
	
  SECTION 2.16.

  	
   

  	
  Changes of Loan Commitments.

  	
   

  	
  28

  
	
  SECTION 2.17.

  	
   

  	
  Letters of Credit

  	
   

  	
  29

  
	
  SECTION 2.18.

  	
   

  	
  Extension Option

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III YIELD PROTECTION; ILLEGALITY; ETC.

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
   

  	
  Additional Costs

  	
   

  	
  32

  
	
  SECTION 3.02.

  	
   

  	
  Limitation on Types of Loans

  	
   

  	
  33

  
	
  SECTION 3.03.

  	
   

  	
  Illegality

  	
   

  	
  34

  
	
  SECTION 3.04.

  	
   

  	
  Treatment of Affected Loans

  	
   

  	
  34

  
	
  SECTION 3.05.

  	
   

  	
  Certain Compensation

  	
   

  	
  34

  
	
  SECTION 3.06.

  	
   

  	
  Capital Adequacy

  	
   

  	
  35

  
	
  SECTION 3.07.

  	
   

  	
  Substitution of Banks

  	
   

  	
  36

  
	
  SECTION 3.08.

  	
   

  	
  Obligation of Banks to Mitigate

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV CONDITIONS PRECEDENT

  	
   

  	
  38

  
						

 

 i
 

 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
   

  	
  Conditions Precedent to the Loans

  	
   

  	
  38

  
	
  SECTION 4.02.

  	
   

  	
  Conditions Precedent to Advances After the Initial
  Advance

  	
   

  	
  39

  
	
  SECTION 4.03.

  	
   

  	
  Deemed Representations

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V REPRESENTATIONS AND WARRANTIES

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
   

  	
  Existence

  	
   

  	
  40

  
	
  SECTION 5.02.

  	
   

  	
  Corporate/Partnership Powers

  	
   

  	
  41

  
	
  SECTION 5.03.

  	
   

  	
  Power of Officers

  	
   

  	
  41

  
	
  SECTION 5.04.

  	
   

  	
  Power and Authority; No Conflicts; Compliance With
  Laws

  	
   

  	
  41

  
	
  SECTION 5.05.

  	
   

  	
  Legally Enforceable Agreements

  	
   

  	
  41

  
	
  SECTION 5.06.

  	
   

  	
  Litigation

  	
   

  	
  41

  
	
  SECTION 5.07.

  	
   

  	
  Good Title to Properties

  	
   

  	
  42

  
	
  SECTION 5.08.

  	
   

  	
  Taxes

  	
   

  	
  42

  
	
  SECTION 5.09.

  	
   

  	
  ERISA

  	
   

  	
  42

  
	
  SECTION 5.10.

  	
   

  	
  No Default on Outstanding Judgments or Orders

  	
   

  	
  42

  
	
  SECTION 5.11.

  	
   

  	
  No Defaults on Other Agreements

  	
   

  	
  43

  
	
  SECTION 5.12.

  	
   

  	
  Government Regulation

  	
   

  	
  43

  
	
  SECTION 5.13.

  	
   

  	
  Environmental Protection

  	
   

  	
  43

  
	
  SECTION 5.14.

  	
   

  	
  Solvency

  	
   

  	
  43

  
	
  SECTION 5.15.

  	
   

  	
  Financial Statements

  	
   

  	
  43

  
	
  SECTION 5.16.

  	
   

  	
  Valid Existence of Affiliates

  	
   

  	
  43

  
	
  SECTION 5.17.

  	
   

  	
  Insurance

  	
   

  	
  44

  
	
  SECTION 5.18.

  	
   

  	
  Accuracy of Information; Full Disclosure

  	
   

  	
  44

  
	
  SECTION 5.19.

  	
   

  	
  Use of Proceeds

  	
   

  	
  44

  
	
  SECTION 5.20.

  	
   

  	
  Governmental Approvals

  	
   

  	
  44

  
	
  SECTION 5.21.

  	
   

  	
  Principal Offices

  	
   

  	
  44

  
	
  SECTION 5.22.

  	
   

  	
  REIT Status

  	
   

  	
  45

  
	
  SECTION 5.23.

  	
   

  	
  Labor Matters

  	
   

  	
  45

  
	
  SECTION 5.24.

  	
   

  	
  Organizational Documents

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI AFFIRMATIVE COVENANTS

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
   

  	
  Maintenance of Existence

  	
   

  	
  45

  
	
  SECTION 6.02.

  	
   

  	
  Maintenance of Records

  	
   

  	
  45

  
	
  SECTION 6.03.

  	
   

  	
  Maintenance of Insurance

  	
   

  	
  45

  
	
  SECTION 6.04.

  	
   

  	
  Compliance with Laws; Payment of Taxes

  	
   

  	
  45

  
	
  SECTION 6.05.

  	
   

  	
  Right of Inspection

  	
   

  	
  46

  
	
  SECTION 6.06.

  	
   

  	
  Compliance With Environmental Laws

  	
   

  	
  46

  
	
  SECTION 6.07.

  	
   

  	
  Payment of Costs

  	
   

  	
  46

  
	
  SECTION 6.08.

  	
   

  	
  Maintenance of Properties

  	
   

  	
  46

  
	
  SECTION 6.09.

  	
   

  	
  Reporting and Miscellaneous Document Requirements

  	
   

  	
  46

  
	
  SECTION 6.10.

  	
   

  	
  Intentionally Omitted

  	
   

  	
  48

  
	
  SECTION 6.11.

  	
   

  	
  General Partner Status

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII NEGATIVE COVENANTS

  	
   

  	
  49

  

 

 ii
 

 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
   

  	
  Mergers, Etc.

  	
   

  	
  49

  
	
  SECTION 7.02.

  	
   

  	
  Intentionally Omitted

  	
   

  	
  49

  
	
  SECTION 7.03.

  	
   

  	
  Amendments to Organizational Documents

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII FINANCIAL COVENANTS

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
   

  	
  Equity Value

  	
   

  	
  50

  
	
  SECTION 8.02.

  	
   

  	
  Ratio of Total Outstanding Indebtedness to
  Capitalization Value

  	
   

  	
  50

  
	
  SECTION 8.03.

  	
   

  	
  Intentionally Omitted

  	
   

  	
  50

  
	
  SECTION 8.04.

  	
   

  	
  Ratio of Combined EBITDA to Fixed Charges

  	
   

  	
  50

  
	
  SECTION 8.05.

  	
   

  	
  Ratio of Unencumbered Combined EBITDA to Unsecured
  Interest Expense

  	
   

  	
  50

  
	
  SECTION 8.06.

  	
   

  	
  Ratio of Unsecured Indebtedness to Capitalization
  Value of Unencumbered Assets

  	
   

  	
  50

  
	
  SECTION 8.07.

  	
   

  	
  Ratio of Secured Indebtedness to Capitalization
  Value

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX EVENTS OF DEFAULT

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
   

  	
  Events of Default

  	
   

  	
  51

  
	
  SECTION 9.02.

  	
   

  	
  Remedies

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X ADMINISTRATIVE AGENT; RELATIONS AMONG
  BANKS

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
   

  	
  Appointment, Powers and Immunities of Administrative
  Agent

  	
   

  	
  53

  
	
  SECTION 10.02.

  	
   

  	
  Reliance by Administrative Agent

  	
   

  	
  54

  
	
  SECTION 10.03.

  	
   

  	
  Defaults

  	
   

  	
  54

  
	
  SECTION 10.04.

  	
   

  	
  Rights of Agent as a Bank

  	
   

  	
  55

  
	
  SECTION 10.05.

  	
   

  	
  Indemnification of Agents

  	
   

  	
  55

  
	
  SECTION 10.06.

  	
   

  	
  Non-Reliance on Agents and Other Banks

  	
   

  	
  55

  
	
  SECTION 10.07.

  	
   

  	
  Failure of Administrative Agent to Act

  	
   

  	
  56

  
	
  SECTION 10.08.

  	
   

  	
  Resignation or Removal of Administrative Agent

  	
   

  	
  56

  
	
  SECTION 10.09.

  	
   

  	
  Amendments Concerning Agency Function

  	
   

  	
  56

  
	
  SECTION 10.10.

  	
   

  	
  Liability of Administrative Agent

  	
   

  	
  56

  
	
  SECTION 10.11.

  	
   

  	
  Transfer of Agency Function

  	
   

  	
  57

  
	
  SECTION 10.12.

  	
   

  	
  Non-Receipt of Funds by Administrative Agent

  	
   

  	
  57

  
	
  SECTION 10.13.

  	
   

  	
  Withholding Taxes

  	
   

  	
  57

  
	
  SECTION 10.14.

  	
   

  	
  Pro Rata Treatment

  	
   

  	
  57

  
	
  SECTION 10.15.

  	
   

  	
  Sharing of Payments Among Banks

  	
   

  	
  58

  
	
  SECTION 10.16.

  	
   

  	
  Possession of Documents

  	
   

  	
  58

  
	
  SECTION 10.17.

  	
   

  	
  Syndication Agents and Documentation Agents

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI NATURE OF OBLIGATIONS

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.01.

  	
   

  	
  Absolute and Unconditional Obligations

  	
   

  	
  58

  
	
  SECTION 11.02.

  	
   

  	
  Non-Recourse to VRT Principals

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII MISCELLANEOUS

  	
   

  	
  59

  

 

 iii
 

 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 12.01.

  	
   

  	
  Binding Effect of Request for Advance

  	
   

  	
  59

  
	
  SECTION 12.02.

  	
   

  	
  Amendments and Waivers

  	
   

  	
  60

  
	
  SECTION 12.03.

  	
   

  	
  Intentionally Omitted.

  	
   

  	
  60

  
	
  SECTION 12.04.

  	
   

  	
  Expenses; Indemnification

  	
   

  	
  61

  
	
  SECTION 12.05.

  	
   

  	
  Assignment; Participation

  	
   

  	
  61

  
	
  SECTION 12.06.

  	
   

  	
  Documentation Satisfactory

  	
   

  	
  63

  
	
  SECTION 12.07.

  	
   

  	
  Notices

  	
   

  	
  63

  
	
  SECTION 12.08.

  	
   

  	
  Setoff

  	
   

  	
  63

  
	
  SECTION 12.09.

  	
   

  	
  Table of Contents; Headings

  	
   

  	
  64

  
	
  SECTION 12.10.

  	
   

  	
  Severability

  	
   

  	
  64

  
	
  SECTION 12.11.

  	
   

  	
  Counterparts

  	
   

  	
  64

  
	
  SECTION 12.12.

  	
   

  	
  Integration

  	
   

  	
  64

  
	
  SECTION 12.13.

  	
   

  	
  Governing Law

  	
   

  	
  64

  
	
  SECTION 12.14.

  	
   

  	
  Waivers

  	
   

  	
  64

  
	
  SECTION 12.15.

  	
   

  	
  Jurisdiction; Immunities

  	
   

  	
  64

  
	
  SECTION 12.16.

  	
   

  	
  Designated Lender

  	
   

  	
  66

  
	
  SECTION 12.17.

  	
   

  	
  No Bankruptcy Proceedings

  	
   

  	
  67

  
	
  SECTION 12.18.

  	
   

  	
  Tax Shelter Regulations

  	
   

  	
  67

  

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  —

  	
   

  	
  Loan Commitments

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
   

  	
  —

  	
   

  	
  Authorization Letter

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT B

  	
   

  	
  —

  	
   

  	
  Ratable Loan Note

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT C

  	
   

  	
  —

  	
   

  	
  Bid Rate Loan Note

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT D

  	
   

  	
  —

  	
   

  	
  Solvency Certificate

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT E

  	
   

  	
  —

  	
   

  	
  Assignment and Assumption Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT F

  	
   

  	
  —

  	
   

  	
  List of Material Affiliates

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT G-1

  	
   

  	
  —

  	
   

  	
  Bid Rate Quote Request

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT G-2

  	
   

  	
  —

  	
   

  	
  Invitation for Bid Rate Quotes

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT G-3

  	
   

  	
  —

  	
   

  	
  Bid Rate Quote

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT G-4

  	
   

  	
  —

  	
   

  	
  Acceptance of Bid Rate Quote

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT H

  	
   

  	
  —

  	
   

  	
  Designation Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT I

  	
   

  	
  —

  	
   

  	
  Labor Matters

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT J

  	
   

  	
  —

  	
   

  	
  Investments of General Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT K

  	
   

  	
  —

  	
   

  	
  Existing Letters of Credit

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 iv

REVOLVING CREDIT AGREEMENT (this “Agreement”) dated as of June 28,
2006 among VORNADO REALTY L.P., a limited partnership organized and existing
under the laws of the State of Delaware (“Borrower”), VORNADO REALTY
TRUST, a real estate investment trust organized and existing under the laws of
the State of Maryland and the sole general partner of Borrower (“General
Partner”), JPMORGAN CHASE BANK, N.A., as agent for the Banks (in such
capacity, together with its successors in such capacity, “Administrative
Agent”), BANK OF AMERICA, N.A. and CITICORP NORTH AMERICA, INC., as
Syndication Agents, DEUTSCHE BANK TRUST COMPANY AMERICAS, LASALLE BANK NATIONAL
ASSOCIATION, and UBS LOAN FINANCE LLC, as Documentation Agents, and JPMORGAN
CHASE BANK, N.A., in its individual capacity and not as Administrative Agent,
and the other lenders signatory hereto (said lenders signatory hereto and the
lenders who from time to time become Banks pursuant to Section 3.07 or
12.05 and, if applicable, any of the foregoing lenders’ Designated Lenders,
each a “Bank” and collectively, the “Banks”).

Now, Borrower has requested a revolving line of credit in the amount of
One Billion Dollars ($1,000,000,000), which may be increased pursuant to the
terms of this Agreement to One Billion Two Hundred Fifty Million Dollars ($1,
250,000,000) and the Administrative Agent and the Banks have agreed to Borrower’s
request pursuant to the terms and conditions of this Agreement. General Partner
is fully liable for the obligations of Borrower under this Agreement by virtue
of its status as the sole general partner of Borrower.

NOW, THEREFORE, in consideration of the premises and the mutual
agreements, covenants and conditions hereinafter set forth, Borrower, General
Partner, the Administrative Agent and each of the Banks agree as follows:

ARTICLE I

DEFINITIONS; ETC.

SECTION 1.01.                      Definitions.
As used in this Agreement the following terms have the following meanings
(except as otherwise provided, terms defined in the singular have a correlative
meaning when used in the plural, and vice  versa):

“Additional Costs” has the meaning specified in Section 3.01.

“Administrative Agent” has the meaning specified in the
preamble.

“Administrative Agent’s Office” means Administrative Agent’s
office located at  270 Park Avenue, New
York, NY 10017, or such other office in the United States as Administrative
Agent may designate by written notice to Borrower and the Banks.

“Affected Bank” has the meaning specified in Section 3.07.

“Affected Loan” has the meaning specified in Section 3.04.

“Affiliate” means, with respect to any Person (the “first Person”),
any other Person: (1) which directly or indirectly controls, or is
controlled by, or is under common control with, the first Person. The term “control”
means the possession, directly or indirectly, of the

 1
 

 

 

power, alone, to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting
securities, by contract, or otherwise.

“Agent” means, individually and collectively, Administrative
Agent, each Syndication Agent and each Documentation Agent.

“Agreement” means this Revolving Credit Agreement.

“Applicable Lending Office” means, for each Bank and for its
LIBOR Loan, Bid Rate Loan(s), Base Rate Loan or Swingline Loan, as applicable,
the lending office of such Bank (or of an Affiliate of such Bank) designated as
such on its signature page hereof or in the applicable Assignment and
Assumption Agreement, or such other office of such Bank (or of an Affiliate of
such Bank) as such Bank may from time to time specify to Administrative Agent
and Borrower as the office by which its LIBOR Loan, Bid Rate Loan(s), Base Rate
Loan or Swingline Loan, as applicable, is to be made and maintained.

“Applicable Margin” means, with respect to Base Rate Loans and
LIBOR Loans,  the respective percentages
per annum determined, at any time, based on the range into which any Credit
Rating then falls, in accordance with the table set forth below. Any change in
any Credit Rating causing it to move to a different range on the table shall
effect an immediate change in the Applicable Margin. Borrower shall have not
less than two (2) Credit Ratings at all times, one of which shall be from
S&P or Moody’s. In the event that Borrower receives only two (2) Credit
Ratings, and such Credit Ratings are not equivalent, the Applicable Margin
shall be the higher of the two Credit Ratings. In the event that Borrower
receives more than two (2) Credit Ratings, and such Credit Ratings are not
all equivalent, the Applicable Margin shall be the lower of the two (2) highest
ratings.

	
  Borrower’s Credit Rating

  (S&P/Moody’s Ratings)

  	
   

  	
   

  	
   

  	
  Applicable Margin

  for Base Rate Loans

  (% per annum)

  	
   

  	
  Applicable Margin

  for LIBOR Loans

  (% per annum)

  
	
  A-/A3 or higher

  	
   

  	
  0.00

  	
   

  	
  0.375

  
	
  BBB+/Baa1

  	
   

  	
  0.00

  	
   

  	
  0.425

  
	
  BBB/Baa2

  	
   

  	
  0.00

  	
   

  	
  0.550

  
	
  BBB-/Baa3

  	
   

  	
  0.00

  	
   

  	
  0.750

  
	
  Below BBB-/Baa3
  or unrated

  	
   

  	
  0.00

  	
   

  	
  1.000

  

 

“Assignee” has the meaning specified in Section 12.05(c).

“Assignment and Assumption Agreement” means an Assignment and
Assumption Agreement, substantially in the form of EXHIBIT E, pursuant to which
a Bank assigns and an Assignee assumes rights and obligations in accordance
with Section 12.05.

“Authorization Letter” means a letter agreement executed by
Borrower in the form of EXHIBIT A.

“Available Total Loan Commitment” has the meaning specified in Section 2.01(b).

 2
 

 

 

“Bank” and “Banks” have the respective meanings specified
in the preamble;   provided, however,
that the term “Bank” shall exclude each Designated Lender when used in
reference to a Ratable Loan, the Loan Commitments or terms relating to the
Ratable Loans and the Loan Commitments.

“Bank Affiliate” means, (a) with respect to any Bank, (i) a
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with any Bank or (ii) any entity (whether a
corporation, partnership, trust or otherwise) that is engaged in making,
purchasing, holding or otherwise investing in bank loans and similar extensions
of credit in the ordinary course of its business and is administered or managed
by any Bank or a Person directly or indirectly controlling or controlled by or
under direct or indirect common control with any Bank and (b) with respect
to any Bank that is a fund which invests in bank loans and similar extensions
of credit, any other fund that invests in bank loans and similar extensions of
credit and is managed by the same investment advisor as such Bank or by a
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such investment advisor.

“Bank Parties” means Administrative Agent and the Banks.

“Banking Day” means (1) any day on which commercial banks
are not authorized or required to close in New York City and (2) whenever
such day relates to a LIBOR Loan, a Bid Rate Loan, an Interest Period with
respect to a LIBOR Loan or a Bid Rate Loan, or notice with respect to a LIBOR
Loan or Bid Rate Loan, a day on which dealings in Dollar deposits are also
carried out in the London interbank market and banks are open for business in
London.

“Bank Reply Period”  has
the meaning specified in Section 12.02.

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

“Banks’ L/C Fee Rate” has the meaning specified in Section 2.17(g).

“Base Rate” means, for any day, the higher of (1) the
Federal Funds Rate for such day plus one-half percent (0.50%), or (2) the
Prime Rate for such day.

“Base Rate Loan” means all or any portion (as the context
requires) of a Bank’s Ratable Loan which shall accrue interest at a rate
determined in relation to the Base Rate.

“Bid Borrowing Limit” has the meaning specified in Section 2.01(c).

“Bid Rate Loan” has the meaning specified in Section 2.01(c).

“Bid Rate Loan Note” has the meaning specified in Section 2.09.

“Bid Rate Quote” means an offer by a Bank to make a Bid Rate
Loan in accordance with Section 2.02.

“Bid Rate Quote Request” has the meaning specified in Section 2.02(a).

 3
 

 

 

“Borrower” has the meaning specified in the preamble.

“Borrower’s Accountants” means Deloitte & Touche, LLP,
or such other accounting firm(s) selected by Borrower and reasonably
acceptable to the Required Banks.

“Borrower’s Consolidated Financial Statements” means the
consolidated balance sheet and related consolidated statements of operations,
accumulated deficiency in assets and cash flows, and footnotes thereto, of the
Borrower, in each case prepared in accordance with GAAP and as filed with the
SEC as SEC Reports.

“Borrower’s Pro Rata Share” means an amount determined based on
the pro rata ownership of the equity interests of a person by Borrower and
Borrower’s consolidated subsidiaries.

“Capitalization Value” means, at any time, the sum of (1) (a) with
respect to Real Property Businesses other than hotels, Combined EBITDA from
such businesses for the most recently ended calendar quarter, annualized (i.e.,
multiplied by four (4)) (except that for purposes of this definition, the
aggregate contribution to such Combined EBITDA from leasing commissions and management
and development fees shall not exceed 5% of Combined EBITDA), capitalized at a
rate of 7.50% per annum, less amounts included in such Combined EBITDA
attributable to Real Property Assets owned less than twelve (12) months, and (b) with
respect to Real Property Businesses that are hotels, Combined EBITDA from such
businesses for the most recently ended four consecutive calendar quarters,
capitalized at a rate of 7.50% per annum, less amounts included in such
Combined EBITDA attributable to Real Property Assets that are hotels and owned
less than twelve (12) months; (2) with respect to Real Property Assets
that are owned by Real Property Businesses for less than twelve (12) months,
the purchase price (including capitalized acquisition costs determined in
accordance with GAAP) for such Real Property Assets; (3) with respect to
Operating Businesses, the Net Equity Value of such businesses; (4) without
duplication, the Borrower’s Pro Rata Share of the capitalized costs, as
determined in accordance with GAAP, of Real Property Assets under construction
with respect to the Real Property Businesses; and (5) without duplication,
Borrower’s Pro Rata Share of unrestricted cash and cash equivalents, the book
value of notes and mortgage loans receivable and marketable securities of
Borrower and its Consolidated Businesses and UJVs at such time, as determined
in accordance with GAAP, and the cost of non-marketable securities of Borrower
and its Consolidated Businesses and UJVs at such time, as determined in accordance
with GAAP. For the purposes of this definition, (1) for any Disposition of
Real Property Assets by a Real Property Business during any calendar quarter,
Combined EBITDA from such businesses will be reduced by actual Combined EBITDA
generated from such asset or assets, as calculated in accordance with this
definition, and (2) the aggregate contribution to Capitalization Value in
excess of fifteen percent (15%) of the total Capitalization Value from
Operating Businesses in which, in each case, the Borrower, directly or
indirectly, owns less than 50% of the beneficial interests, and non-marketable
securities shall not be included in Capitalization Value.

“Capitalization Value of Unencumbered Assets” means, at any
time, the sum of (1) (a) with respect to Real Property Businesses
other than hotels, Unencumbered Combined EBITDA from such businesses for the
most recently ended calendar quarter, annualized (i.e., multiplied by four (4))
(except that for purposes of this definition, the aggregate contribution to

 4
 

 

 

such Unencumbered
Combined EBITDA from leasing commissions and management and development fees
shall not exceed 5% of Unencumbered Combined EBITDA), capitalized at a rate of
7.50% per annum, less amounts included in such Unencumbered Combined EBITDA
attributable to Real Property Assets that are Unencumbered Assets and owned
less than twelve (12) months, and (b) with respect to Real Property
Businesses that are hotels, Unencumbered Combined EBITDA from such businesses
for the most recently ended four consecutive calendar quarters, capitalized at
a rate of 7.50% per annum, less amounts included in such Unencumbered Combined
EBITDA attributable to Real Property Assets that are hotels and Unencumbered
Assets and owned less than twelve (12) months; (2) with respect to Real
Property Assets that are Unencumbered Assets and that are owned by Real
Property Businesses for less than twelve (12) months, the purchase price
(including capitalized acquisition costs determined in accordance with GAAP)
for such Real Property Assets; (3) without duplication, the Borrower’s Pro
Rata Share of the capitalized costs, as determined in accordance with GAAP, of
Real Property Assets that are Unencumbered Assets under construction with
respect to the Consolidated Businesses and UJVs; and (4) without
duplication, Borrower’s Pro Rata Share of unrestricted cash and cash
equivalents and the book value of notes and mortgage loans receivable and
marketable securities that are Unencumbered Assets of Borrower and its
Consolidated Businesses and UJVs with respect to Real Property Businesses, at
such time, as determined in accordance with GAAP. For the purposes of this
definition, (1) for any Disposition of Real Property Assets by a Real
Property Business during any calendar quarter, Unencumbered Combined EBITDA
from such businesses will be reduced by actual Unencumbered Combined EBITDA
generated from such asset or assets, as calculated in accordance with this
definition, and (2) the aggregate contribution to Capitalized Value of
Unencumbered Assets in excess of thirty percent (30%) of the total Capitalized
Value of Unencumbered Assets from the aggregate of Real Property Businesses
with respect to Real Property Assets in which, in each case, the Borrower,
directly or indirectly, owns less than 50% of the beneficial interests, plus
notes and mortgage loans receivable that are Unencumbered Assets of Borrower
and its Consolidated Businesses and UJVs, at such time, as determined in
accordance with GAAP, shall not be included in Capitalized Value of Unencumbered
Assets.

“Capital Lease” means any lease which has been or should be
capitalized on the books of the lessee in accordance with GAAP.

“Closing Date” means the date the Initial Advance is made.

“Code” means the Internal Revenue Code of 1986.

“Combined EBITDA” means, for any period of time, (1) the
Borrower’s Pro Rata Share of net income plus Interest Expense, income taxes,
depreciation, amortization and non-recurring items (including, without
limitation, gains or losses from asset sales), each as determined in accordance
with GAAP, of Consolidated Businesses and UJVs, provided  however,
that Combined EBITDA shall not include any amounts related to Operating
Businesses.

“Consolidated Businesses” means, at any time, the Borrower and
Subsidiaries of the Borrower that the Borrower consolidates in its consolidated
financial statements prepared in accordance with GAAP.

 5
 

 

 

“Continue”, “Continuation” and “Continued” refer
to the continuation pursuant to Section 2.12 of a LIBOR Loan as a LIBOR
Loan from one Interest Period to the next interest Period.

“Convert”, “Conversion” and “Converted” refer to a
conversion pursuant to Section 2.12 of a Base Rate Loan into a LIBOR Loan
or a LIBOR Loan into a Base Rate Loan, each of which may be accompanied by the
transfer by a Bank (at its sole discretion) of all or a portion of its Ratable
Loan from one Applicable Lending Office to another.

“Credit Rating” means the rating assigned by the Ratings
Agencies to Borrower’s senior unsecured long-term indebtedness.

“Debt” means, at any time, without duplication, (1) all
indebtedness and liabilities for borrowed money, secured or unsecured, of
Borrower, (2) in the case of Consolidated Businesses and UJVs with respect
to Real Property Businesses, the Borrower’s Pro Rata Share of all indebtedness
and liabilities of such Consolidated Businesses and UJVs for borrowed money,
secured or unsecured, including mortgage and other notes payable, but excluding
any indebtedness that is secured by cash or cash equivalents or marketable
securities, or defeased, and (3) Borrower’s Pro Rata Share of those
liabilities of Borrower or any of its Consolidated Businesses or UJVs
consisting of indebtedness for borrowed money, as determined in accordance with
GAAP, that is or would be stated and quantified as contingent liabilities in
the notes to the consolidated financial statements of Borrower as of that date;
provided that such liabilities shall exclude any such liability reflected on
the consolidated balance sheet of Borrower and its Consolidated Businesses or
that is otherwise included in clauses (1) or (2) above.

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

“Default Rate” means a rate per annum equal to: (1) with
respect to Base Rate Loans, a variable rate three percent (3%) plus the rate of
interest then in effect thereon (including the Applicable Margin); and (2) with
respect to LIBOR Loans and Bid Rate Loans, a fixed rate three percent (3%) plus
the rate(s) of interest in effect thereon (including the Applicable Margin
or the LIBOR Bid Margin, as the case may be) at the time of any Default or
Event of Default until the end of the then current Interest Period therefor
and, thereafter, a variable rate three percent (3%) plus the rate of interest
for a Base Rate Loan (including the Applicable Margin).

“Designated Lender” means a special purpose corporation that (i) shall
have become a party to this Agreement pursuant to Section 12.16 and (ii) is
not otherwise a Bank.

“Designating Lender” has the meaning specified in Section 12.16.

“Designation Agreement” means an agreement in substantially the
form of EXHIBIT H, entered into by a Bank and a Designated Lender and accepted
by Administrative Agent.

“Disposition” means a sale (whether by assignment, transfer or
Capital Lease) of an asset.

 6
 

 

 

“Dollars” and the sign “$” mean lawful money of the
United States of America.

“Elect”, “Election” and “Elected” refer to
elections, if any, by Borrower pursuant to Section 2.12 to have all or a
portion of an advance of the Ratable Loans be outstanding as LIBOR Loans.

“Environmental Discharge” means any discharge or release of any
Hazardous Materials in violation of any applicable Environmental Law.

“Environmental Law” means any applicable Law relating to pollution
or the environment, including Laws relating to noise or to emissions,
discharges, releases or threatened releases of Hazardous Materials into the
work place, the community or the environment, or otherwise relating to the
generation, manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Hazardous Materials.

“Environmental Notice” means any written complaint, order,
citation, letter, inquiry, notice or other written communication from any
Person (1) affecting or relating to Borrower’s compliance with any
Environmental Law in connection with any activity or operations at any time
conducted by Borrower, (2) relating to the occurrence or presence of or
exposure to or possible or threatened or alleged occurrence or presence of or
exposure to Environmental Discharges or Hazardous Materials at any of Borrower’s
locations or facilities, including, without limitation: (a) the existence
of any contamination or possible or threatened contamination at any such
location or facility and (b) remediation of any Environmental Discharge or
Hazardous Materials at any such location or facility or any part thereof; and (3) any
violation or alleged violation of any relevant Environmental Law.

“Equity Value” means, at any time, Capitalization Value less the
Total Outstanding Indebtedness.

“ERISA” means the Employee Retirement Income Security Act of
1974, including the rules and regulations promulgated thereunder.

“ERISA Affiliate” means any corporation or trade or business
which is a member of the same controlled group of organizations (within the
meaning of Section 414(b) of the Code) as Borrower or General Partner
or is under common control (within the meaning of Section 414(c) of
the Code) with Borrower or General Partner or is required to be treated as a
single employer with Borrower or General Partner under Section 414(m) or
414(o) of the Code.

“Event of Default” has the meaning specified in Section 9.01.

“Execution Date” means the date of this Agreement.

“Extension Date” has the meaning specified in Section 2.18.

“Extension Notice” has the meaning specified in Section 2.18.

“Facility Fee” means the respective percentages per annum
determined, at any time, based on the range into which any Credit Rating then
falls, in accordance with the table set

 7
 

 

forth below. Any change in any Credit Rating causing
it to move to a different range on the table shall effect an immediate change
in the  Facility Fee. Borrower shall have
not less than two (2) Credit Ratings at all times, one of which shall be
from S&P or Moody’s. In the event that Borrower receives only two (2) Credit
Ratings, and such Credit Ratings are not equivalent, the Facility Fee shall be
the higher of the two Credit Ratings. In the event that Borrower receives more
than two (2) Credit Ratings, and such Credit Ratings are not all
equivalent, the Facility Fee shall be the lower of the two (2) highest
ratings.

	
  Borrower’s Credit Rating

  (S&P/Moody’s/Ratings)

  	
   

  	
   

  	
   

  	
   

  	
  Facility Fee

  (% per annum)

  	
   

  	
   

  
	
  A-/A3
  or higher

  	
   

  	
  0.1250

  	
   

  
	
  BBB+/Baa1

  	
   

  	
  0.150

  	
   

  
	
  BBB/Baa2

  	
   

  	
  0.150

  	
   

  
	
  BBB-/Baa3

  	
   

  	
  0.200

  	
   

  
	
  Below BBB-/Baa3 or unrated

  	
   

  	
  0.250

  	
   

  

 

“Federal Funds Rate” means, for any day, the rate per annum
(expressed on a 360-day basis of calculation) equal to the weighted
average of the rates on overnight federal funds transactions as published by
the Federal Reserve Bank of New York for such day provided that (1) if
such day is not a Banking Day, the Federal Funds Rate for such day shall be
such rate on such transactions on the immediately preceding Banking Day as so
published on the next succeeding Banking Day, and (2) if no such rate is
so published on such next succeeding Banking Day, the Federal Funds Rate for
such day shall be the average of the rates quoted by three Federal Funds
brokers to Administrative Agent on such day on such transactions.

“Fiscal Year” means each period from January 1 to December 31.

“Fitch” means Fitch, Inc.

“Fixed Charges” means, in respect of any period, the sum of (i) the
Borrower’s Pro Rata Share of Interest Expense for such period, as determined in
accordance with GAAP, attributable to Debt in respect of Real Property
Businesses, multiplied by four (4); (ii) the Borrower’s Pro Rata Share of
interest capitalized during such period, as determined in accordance with GAAP,
attributable to Debt in respect of Real Property Businesses, multiplied by four
(4), (iii) distributions during such period on preferred units of the
Borrower, as determined in accordance with GAAP, multiplied by four (4), and (iv) Borrower’s
Pro Rata Share of regularly scheduled principal amortization payments
(exclusive of any scheduled balloon type payments) attributable to Debt in
respect of Real Property Businesses.

“Fronting Bank” means JPMorgan Chase Bank, N.A., Bank of
America, N.A. or another Bank that shall have agreed to be designated by
Borrower from among those Banks identified by Administrative Agent as being
acceptable for issuing a Letter of Credit pursuant to Section 2.17.

“GAAP” means accounting principles generally accepted in the
United States of America as in effect from time to time, applied on a basis
consistent with those used in the

 8
 

 

 

preparation of the financial statements referred to in
Section 5.15 (except for changes concurred in by Borrower’s Accountants).

“General Partner” has the meaning specified in the preamble.

“Good Faith Contest” means the contest of an item if: (1) the
item is diligently contested in good faith, and, if appropriate, by proceedings
timely instituted; (2) adequate reserves are established with respect to
the contested item; (3) during the period of such contest, the enforcement
of any contested item is effectively stayed; and (4) the failure to pay or
comply with the contested item during the period of the contest is not likely
to result in a Material Adverse Change.

“Governmental Authority” means any nation or government, any
state or other political subdivision thereof, and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.

“Guaranty” means the guaranty(ies) of Borrower’s obligations to
be executed by General Partner.

“Hazardous Materials” means any pollutant, effluents, emissions,
contaminants, toxic or hazardous wastes or substances, as any of those terms
are defined from time to time in or for the purposes of any relevant
Environmental Law, including asbestos fibers and friable asbestos,
polychlorinated biphenyls, and any petroleum or hydrocarbon-based products or
derivatives.

“Initial Advance” means the first advance of proceeds of the
Loans.

“Interest Expense” means, for any period of time, the
consolidated interest expense, whether paid, accrued or capitalized (without
deduction of consolidated interest income) of Borrower that is attributable to
Borrower’s Pro Rata Share in its Consolidated Businesses in respect of Real
Property Businesses, including, without limitation or duplication (or, to the
extent not so included, with the addition of), (1) the portion of any
rental obligation in respect of any Capital Lease obligation allocable to
interest expense in accordance with GAAP; (2) the amortization of Debt
discounts and premiums; (3) any payments or fees (other than up-front
fees) with respect to interest rate swap or similar agreements; and (4) the
interest expense and items listed in clauses (1) through (3) above
applicable to each of the UJVs (to the extent not included above) multiplied by
Borrower’s Pro Rata Share in the UJVs in respect of Real Property Businesses,
in all cases as reflected in the Borrower’s Consolidated Financial Statements.

“Interest Period” means, (1) with respect to any LIBOR
Loan, the period commencing on the date the same is advanced, converted from a
Base Rate Loan or Continued, as the case may be, and ending, as Borrower may
select pursuant to Section 2.06, on the numerically corresponding day in
the first, second, third or, if available from all of the Banks, sixth calendar
month thereafter (or at Administrative Agent’s reasonable discretion a period
of shorter duration), provided that each such Interest Period which commences
on the last Banking Day of a calendar month (or on any day for which there is
no numerically corresponding day in the appropriate subsequent calendar month)
shall end on the last Banking Day of the appropriate calendar month; and (2) with
respect to any Bid Rate Loan, the period commencing on the date

 9
 

 

 

the same is advanced and ending, as Borrower may
select pursuant to Section 2.02, on the numerically corresponding day in
the first, second or third calendar month thereafter (or at Administrative
Agent’s reasonable discretion a period of shorter duration) provided that each
such Interest Period which commences on the last Banking Day of a calendar
month (or on any day for which there is no numerically corresponding day in the
appropriate subsequent calendar month) shall end on the last Banking Day of the
appropriate calendar month.

“Invitation for Bid Rate Quotes” has the meaning specified in Section 2.02(b).

“Law” means any federal, state or local statute, law, rule,
regulation, ordinance, order, code, or rule of common law, now or
hereafter in effect, and in each case as amended, and any judicial or
administrative interpretation thereof by a Governmental Authority or otherwise,
including any judicial or administrative order, consent decree or judgment.

“Lead Arrangers” means J.P. Morgan Securities Inc. and Bank of
America Securities, L.L.C.

“Letter of Credit” has the meaning specified in Section 2.17(a).

“LIBOR Base Rate” means, with respect to any Interest Period
therefor, the rate per annum quoted at approximately 11:00 a.m., London
time, by the Bank serving as Administrative Agent two (2) Banking Days
prior to the first day of such Interest Period for the offering to leading
banks in the London interbank market of Dollar deposits in immediately
available funds, for a period, and in an amount, comparable to such Interest
Period and principal amount of the LIBOR Loan or Bid Rate Loan, as the case may
be, in question outstanding during such Interest Period.

“LIBOR Bid Margin” has the meaning specified in Section 2.02(c)(2)(iii).

“LIBOR Bid Rate” means a rate per annum equal to the sum of (1) the
LIBOR Interest Rate for the Bid Rate Loan and Interest Period in question and (2) the
LIBOR Bid Margin.

“LIBOR Interest Rate” means, for any LIBOR Loan or Bid Rate Loan,
a rate per annum determined by Administrative Agent to be equal to the quotient
of (1) the LIBOR Base Rate for such LIBOR Loan or Bid Rate Loan, as the
case may be, for the Interest Period therefor divided by (2) one minus the
LIBOR Reserve Requirement for such LIBOR Loan or Bid Rate Loan, as the case may
be, for such Interest Period.

“LIBOR Loan” means all or any portion (as the context requires)
of any Bank’s Ratable Loan which shall accrue interest at rate(s) determined
in relation to LIBOR Interest Rate(s).

“LIBOR Reserve Requirement” means, for any LIBOR Loan or Bid
Rate Loan, the average maximum rate at which reserves (including any marginal,
supplemental or emergency reserves) are required to be maintained during the
Interest Period for such LIBOR Loan or Bid Rate Loan under Regulation D by
member banks of the Federal Reserve System in New York City with deposits
exceeding One Billion Dollars ($1,000,000,000) against

 10
 

 

 

“Eurocurrency liabilities” (as such term is used in
Regulation D). Without limiting the effect of the foregoing, the LIBOR Reserve
Requirement shall also reflect any other reserves required to be maintained by
such member banks by reason of any Regulatory Change against (1) any
category of liabilities which includes deposits by reference to which the LIBOR
Base Rate is to be determined as provided in the definition of “LIBOR Base Rate”
in this Section 1.01 or (2) any category of extensions of credit or
other assets which include loans the interest rate on which is determined on
the basis of rates referred to in said definition of “LIBOR Base Rate”.

“Lien” means any mortgage, deed of trust, pledge, security
interest, hypothecation, assignment for collateral purposes, deposit
arrangement, lien (statutory or other), or other security agreement or charge
of any kind or nature whatsoever of any third party (excluding any right of
setoff but including, without limitation, any conditional sale or other title
retention agreement, any financing lease having substantially the same economic
effect as any of the foregoing, and the filing of any financing statement under
the Uniform Commercial Code or comparable law of any jurisdiction to evidence
any of the foregoing).

“Loan” means, with respect to each Bank, its Ratable Loan, Bid
Rate Loan(s) and Swingline Loan(s), collectively.

“Loan Commitment” means, with respect to each Bank, the
obligation to make a Ratable Loan in the principal amount set forth on Schedule
1 attached hereto and incorporated herein, as such amount may be reduced or
increased from time to time in accordance with the provisions of Section 2.16
(upon the execution of an Assignment and Assumption Agreement, the definition
of Loan Commitment shall be deemed revised to reflect the assignment being
effected pursuant to such Assignment and Assumption Agreement).

“Loan Documents” means this Agreement, the Notes, the Guaranty,
the Authorization Letter and the Solvency Certificate.

“Mandatory Borrowing” has the meaning specified in Section 2.03(b)(3).

“Material Adverse Change” means either (1) a material
adverse change in the status of the business, results of operations, financial
condition, property of Borrower or General Partner or (2) any event or
occurrence of whatever nature which is likely to have a material adverse effect
on the ability of Borrower or General Partner to perform their obligations
under the Loan Documents.

“Material Affiliates” means the Affiliates of Borrower listed on
EXHIBIT F.

“Maturity Date” means June 28, 2010, subject to extension
pursuant to Section 2.18.

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

“Multiemployer Plan” means a Plan defined as such in Section 3(37)
of ERISA to which contributions have been or are required to be made by
Borrower or General Partner or any ERISA Affiliate and which is covered by Title
IV of ERISA.

 11
 

 

 

“Net Equity Value” means, at any time, (i) in the case of a
Consolidated Business that is an Operating Business, the total assets of such
business less the total liabilities of such business less the amounts
attributable to the minority interest in such business, in each case as
determined in accordance with GAAP, and (ii) in the case of a UJV that is
an Operating Business, the Borrower’s net equity investment in such business,
as determined in accordance with GAAP.

“Note” and “Notes” have the respective meanings specified
in Section 2.09.

“Obligations” means each and every obligation, covenant and
agreement of Borrower, now or hereafter existing, contained in this Agreement,
and any of the other Loan Documents, whether for principal, reimbursement
obligations, interest, fees, expenses, indemnities or otherwise, and any
amendments or supplements thereto, extensions or renewals thereof or
replacements therefor, including but not limited to all indebtedness,
obligations and liabilities of Borrower to Administrative Agent and any Bank
now existing or hereafter incurred under or arising out of or in connection
with the Notes, this Agreement, the other Loan Documents, and any documents or
instruments executed in connection therewith; in each case whether direct or
indirect, joint or several, absolute or contingent, liquidated or unliquidated,
now or hereafter existing, renewed or restructured, whether or not from time to
time decreased or extinguished and later increased, created or incurred, and including
all indebtedness of Borrower under any instrument now or hereafter evidencing
or securing any of the foregoing.

“Operating Business” means a Consolidated Business or UJV that
does not own primarily Real Property Assets.

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

“Participant” has the meaning specified in Section 12.05(b).

“Payor” has the meaning specified in Section 10.12.

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

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

“Plan” means any employee benefit or other plan established or
maintained, or to which contributions have been or are required to be made, by
Borrower or General Partner or any ERISA Affiliate and which is covered by
Title IV of ERISA or to which Section 412 of the Code applies.

“presence”, when used in connection with any Environmental
Discharge or Hazardous Materials, means and includes presence, generation,
manufacture, installation, treatment, use, storage, handling, repair,
encapsulation, disposal, transportation, spill, discharge and release.

 12
 

 

 

“Prime Rate” means that rate of interest from time to time
announced by the Bank serving as Administrative Agent in the United States as
its prime commercial lending rate. Any change in the Prime Rate shall be
effective as of the date such change is announced by the Bank serving as
Administrative Agent.

“Prior Credit Agreement” means that certain Revolving Credit
Agreement, dated as of July 2, 2003, among Borrower, General Partner,
JPMorgan Chase Bank and the other banks signatory thereto.

“Pro Rata Share” means, with respect to each Bank, a fraction,
the numerator of which is the amount of such Bank’s Loan Commitment and the
denominator of which is the Total Loan Commitment.

“Prohibited Transaction” means any transaction set forth in Section 406
of ERISA or Section 4975 of the Code.

“Qualified Institution” means any of (a) a commercial bank
organized under the laws of the United States or any State thereof or the
District of Columbia and having total assets in excess of $1,000,000,000
calculated in accordance with GAAP, (b) a savings and loan association or
savings bank organized under the laws of the United States or any State thereof
or the District of Columbia and having total assets in excess of $1,000,000,000
calculated in accordance with GAAP, (c) a commercial bank organized under
the laws of any other country which is a member of the Organization for
Economic Cooperation and Development or a political subdivision of any such
country, and having total assets in excess of $1,000,000,000, calculated in
accordance with GAAP, provided that such bank is acting at all times
with respect to the Agreement through a branch or agency located in the United
States of America and (d) an entity reasonably acceptable to Administrative
Agent and, so long as no Event of Default exists, Borrower, which is regularly
engaged in making, purchasing or investing in loans and having total assets in
excess of $500,000,000, calculated in accordance with GAAP, provided that
if such entity is a Bank Affiliate, no such consent of Administrative Agent or
Borrower shall be required.

“Ratable Loan” has the meaning specified in Section 2.01(b).

“Ratable Loan Note” has the meaning specified in Section 2.09.

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

“Real
Property Asset” means an asset from which income is, or upon completion
expected by the Borrower to be, derived predominantly from contractual rent
payments under leases with unaffiliated third party tenants, hotel operations,
tradeshow operations or leasing commissions and management and development
fees.

“Real Property Business” means a Consolidated Business or UJV
that owns primarily Real Property Assets.

 13
 

 

 

“Regulation D” means Regulation D of the Board of Governors of the
Federal Reserve System, as the same may be amended or supplemented from time to
time, or any similar Law from time to time in effect.

“Regulation U” means Regulation U of the Board of Governors of
the Federal Reserve System, as the same may be amended or supplemented from
time to time, or any similar Law from time to time in effect.

“Regulatory Change” means, with respect to any Bank, any change
after the date of this Agreement in United States federal, state, municipal or
foreign laws or regulations (including Regulation D) or the adoption or making
after such date of any interpretations, directives or requests applying to a
class of banks including such Bank of or under any United States, federal,
state, municipal or foreign laws or regulations (whether or not having the
force of law) by any court or governmental or monetary authority charged with
the interpretation or administration thereof.

“REIT” means a “real estate investment trust,” as such term is
defined in Section 856 of the Code.

“Relevant Documents” has the meaning specified in Section 11.02.

“Replacement Bank” has the meaning specified in Section 3.07.

“Replacement Notice” has the meaning specified in Section 3.07.

“Reportable Event” means any of the events set forth in Section 4043(c) of
ERISA, other than those events as to which the thirty (30) day notice period is
waived by the PBGC.

“Required Banks” means at any time the Banks having Pro Rata
Shares aggregating at least 51% (excluding, however, any Bank that is in
default of its obligations under this Agreement); provided, however,
that during the existence of an Event of Default, the “Required Banks” shall be
the Banks holding at least 51% of the then aggregate unpaid principal amount of
the Loans (excluding, however, any Bank that is in default of its obligations
under this Agreement); and provided, further that in the case of
Swingline Loans, the amount of each Bank’s funded participation interest in
such Swingline Loans shall be considered for purposes hereof as if it were a
direct Loan and not a participation interest, and the aggregate amount of
Swingline Loans owing to Swingline Lender shall be considered for purposes
hereof as reduced by the amount of such funded participation interests.

“Required Payment” has the meaning set forth in Section 10.12.

“SEC” means the United States Securities and Exchange
Commission.

“SEC Reports” means the reports required to be delivered to the
Securities and Exchange Commission pursuant to the Securities Exchange Act of
1934, as amended.

 

 14

 

“Secured Indebtedness” means, at any time, that portion of Total
Outstanding Indebtedness that is not Unsecured Indebtedness.

“Solvency Certificate” means a certificate in substantially the
form of EXHIBIT D, to be delivered by Borrower pursuant to the terms of this
Agreement.

“Solvent” means, when used with respect to any Person, that (1) the
fair value of the property of such Person, on a going concern basis, is greater
than the total amount of liabilities (including, without limitation, contingent
liabilities) of such Person; (2) the present fair saleable value of the
assets of such Person, on a going concern basis, is not less than the amount
that will be required to pay the probable liabilities of such Person on its
debts as they become absolute and matured; (3) such Person does not intend
to, and does not believe that it will, incur debts or liabilities beyond such
Person’s ability to pay as such debts and liabilities mature; (4) such
Person is not engaged in business or a transaction, and is not about to engage
in business or a transaction, for which such Person’s property would constitute
unreasonably small capital after giving due consideration to the prevailing
practice in the industry in which such Person is engaged; and (5) such
Person has sufficient resources, provided that such resources are prudently
utilized, to satisfy all of such Person’s obligations. Contingent liabilities
will be computed at the amount that, in light of all the facts and
circumstances existing at such time, represents the amount that can reasonably
be expected to become an actual or matured liability.

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

“Subsidiary” means, with respect to any Person, a corporation,
partnership, joint venture, limited liability company or other entity, fifty
percent (50%) or more of the outstanding voting stock, partnership interests or
membership interests, as the case may be, of which are owned, directly or
indirectly, by that Person or by one or more other Subsidiaries of that Person
and over which that Person or one or more other Subsidiaries of that Person
exercise sole control. For the purposes of this definition, “voting stock”
means stock having voting power for the election of directors or trustees, as
the case may be, whether at all times or only so long as no senior class of
stock has voting power for the election of directors or trustees by reason of
any contingency, and “control” means the power to direct the management and
policies of a Person, directly or indirectly, whether through the ownership of
voting securities, by contract or otherwise.

“Swingline Commitment” has the meaning specified in Section 2.03(a).

“Swingline Lender” means JPMorgan Chase Bank, N.A., in its
capacity as Swingline Lender hereunder, and its permitted successors in such
capacity in accordance with the terms of this Agreement.

“Swingline Loan” has the meaning set forth in Section 2.03(a)

“Taxable REIT Subsidiary” means any corporation (other than a
REIT) in which Guarantor directly or indirectly owns stock and Guarantor and
such corporation jointly elect that such corporation shall be treated as a
taxable REIT subsidiary of Guarantor under and pursuant to Section 856 of
the Code.

 15
 

 

“Total Loan Commitment” means an amount equal to the aggregate
amount of all Loan Commitments.

“Total Outstanding Indebtedness” means, at any time, without
duplication, Debt of the Borrower and the Borrower’s Pro Rata Share of Debt in
respect of Consolidated Businesses and UJVs, exclusive of non-recourse Debt of
Operating Businesses, determined on a consolidated basis in accordance with
GAAP.

“UJVs” means, at any time, (1) investments of the Borrower
that are accounted for under the equity method in the Borrower’s Consolidated
Financial Statements prepared in accordance with GAAP and (2) investments
of the Borrower in which the Borrower owns less than 50% of the equity
interests and that are consolidated in the Borrower’s Consolidated Financial
Statements prepared in accordance with GAAP.

“Unencumbered Assets” means, collectively, assets, reflected in
the Borrower’s Consolidated Financial Statements, owned in whole or in part,
directly or indirectly, by Borrower and not subject to any Lien to secure all
or any portion of Secured Indebtedness, and assets of Consolidated Businesses
and UJVs which are not subject to any Lien to secure all or any portion of
Secured Indebtedness or to any negative pledge or similar agreement, provided
further that any such Consolidated Business or UJV is not the borrower or guarantor
of any Unsecured Indebtedness.

“Unencumbered Combined EBITDA” means that portion of Combined
EBITDA attributable to Unencumbered Assets; provided that Unencumbered
Combined EBITDA shall include only general and administrative expenses that are
attributable to the management and operation of the Unencumbered Assets in
accordance with GAAP and shall not include any corporate general and
administrative expenses of Borrower, Guarantor, Consolidated Businesses or UJVs
(e.g., salaries of corporate officers).

“Unfunded Current Liability” of any Plan means the amount, if
any, by which the actuarial present value of accumulated plan benefits as of
the close of its most recent plan year, based upon the actuarial assumptions
used by such Plan’s actuary in the most recent annual valuation of such Plan,
exceeds the fair market value of the assets allocable thereto, determined in
accordance with Section 412 of the Code.

“Unsecured Indebtedness” means, at any time, Total Outstanding
Indebtedness that is not secured by a lien on assets of the Borrower, a
Consolidated Business or a UJV, as the case may be.

“Unsecured Interest Expense” means, for any period, the Borrower’s
Pro Rata Share of Interest Expense attributable to Total Outstanding
Indebtedness constituting Unsecured Indebtedness, exclusive of any Unsecured
Indebtedness of UJVs that are Operating Businesses.

“VRT Consolidated Financial Statements” means, collectively, the
consolidated balance sheet and related consolidated statements of operations,
accumulated deficiency in assets and cash flows, and footnotes thereto, of
General Partner and Borrower, in each case prepared in accordance with GAAP and
as filed with the SEC as SEC Reports.

 16
 

 

“VRT Principals” means the trustees, executive officers and
directors of Borrower (other than General Partner) or General Partner at any
applicable time.

SECTION 1.02.   Accounting Terms. All
accounting terms not specifically defined herein shall be construed in
accordance with GAAP, and, except as otherwise provided herein, all financial
data required to be delivered hereunder shall be prepared in accordance with
GAAP.

SECTION 1.03.   Computation of Time Periods.
Except as otherwise provided herein, in this Agreement, in the computation of
periods of time from a specified date to a later specified date, the word “from”
means “from and including” and words “to” and “until” each means “to but
excluding”.

SECTION 1.04.   Rules of Construction.
When used in this Agreement: (1) “or” is not exclusive; (2) a
reference to a Law includes any amendment or modification to such Law; (3) a
reference to a Person includes its permitted successors and permitted assigns; (4) except
as provided otherwise, all references to the singular shall include the plural
and vice  versa; (5) except as provided in this Agreement, a
reference to an agreement, instrument or document shall include such agreement,
instrument or document as the same may be amended, modified or supplemented
from time to time in accordance with its terms and as permitted by the Loan
Documents; (6) all references to Articles or Sections shall be to Articles
and Sections of this Agreement unless otherwise indicated; and (7) all
Exhibits to this Agreement shall be incorporated into this Agreement.

ARTICLE II

THE LOANS

SECTION 2.01.   Ratable Loans; Bid Rate Loans.
(a)  Subject to the terms and conditions of this Agreement, the Banks
agree to make loans to Borrower as provided in this Article II.

(b)           Each of
the Banks severally agrees to make a loan to Borrower (each such loan by a
Bank, a “Ratable Loan”) in an amount up to its Loan Commitment pursuant
to which such Bank shall from time to time advance and readvance to Borrower an
amount equal to its Pro Rata Share of the excess (the “Available Total Loan
Commitment”) of the Total Loan Commitment minus the sum of (1) all
previous advances (including Bid Rate Loans and 
Swingline Loans) made by the Banks which remain unpaid and (2) the
outstanding amount of all Letters of Credit, plus, without duplication of any
amount included in clause (1) above, such Bank’s Pro Rata Share of
Swingline Loans outstanding. Within the limits set forth herein, Borrower may
borrow from time to time under this paragraph (b) and prepay from time to
time pursuant to Section 2.10 (subject, however, to the restrictions on
prepayment set forth in said Section), and thereafter reborrow pursuant to this
paragraph (b). The Ratable Loans may be outstanding as: (1) Base Rate
Loans; (2) LIBOR Loans; or (3) a combination of the foregoing, as
Borrower shall elect and notify Administrative Agent in accordance with Section 2.14.
The 

 17
 

 

LIBOR
Loan, Bid Rate Loan, Base Rate Loan and Swingline Loan of each Bank shall be
maintained at such Bank’s Applicable Lending Office.

(c)           In
addition to Ratable Loans pursuant to paragraph (b) above, so long as
Borrower’s Credit Rating is BBB- or better by S&P (if rated by S&P) and
Baa3 or better by Moody’s (if rated by Moody’s), one or more Banks may, at
Borrower’s request and in their sole discretion, make non-ratable loans which
shall bear interest at the LIBOR Bid Rate in accordance with Section 2.02
(such loans being referred to in this Agreement as “Bid Rate Loans”). Borrower
may borrow Bid Rate Loans from time to time pursuant to this paragraph (c) in
an amount up to fifty percent (50%) of the Total Loan Commitment at the time of
the borrowing (taking into account any repayments of the Loans made
simultaneously therewith) (the “Bid Borrowing Limit”) and shall repay
such Bid Rate Loans as required by Section 2.09, and it may thereafter
reborrow pursuant to this paragraph (c) or paragraph (b) above; provided,
however, that the aggregate outstanding principal amount of Bid Rate
Loans at any particular time shall not exceed the Bid Borrowing Limit.

(d)           The
obligations of the Banks under this Agreement are several, and no Bank shall be
responsible for the failure of any other Bank to make any advance of a Loan to
be made by such other Bank. However, the failure of any Bank to make any
advance of the Loan to be made by it hereunder on the date specified therefor
shall not relieve any other Bank of its obligation to make any advance of its
Loan specified hereby to be made on such date.

SECTION 2.02.   Bid Rate Loans. (a) 
When Borrower has the Credit Rating required by Section 2.01(c) and
wishes to request offers from the Banks to make Bid Rate Loans, it shall
transmit to Administrative Agent by facsimile a request (a “Bid Rate Quote
Request”) substantially in the form of EXHIBIT G-1 so as to be
received not later than 10:30 a.m. (New York time) on the fourth Banking
Day prior to the date for funding of the Bid Rate Loan(s) proposed
therein, specifying:

(1)           the
proposed date of funding of such Bid Rate Loan(s), which shall be a Banking
Day;

(2)           the
aggregate amount of the Bid Rate Loans requested, which shall be at least Five
Million Dollars ($5,000,000) and an integral multiple of One Million Dollars
($1,000,000); and

(3)           the
duration of the Interest Period(s) applicable thereto, subject to the
provisions of the definition of “Interest Period” in Section 1.01.

Borrower may request offers to make Bid Rate Loans for more than one (1) Interest
Period in a single Bid Rate Quote Request. No Bid Rate Quote Request may be
submitted by Borrower sooner than seven (7) calendar days after the
submission of any other Bid Rate Quote Request.

(b)           Promptly
upon receipt of a Bid Rate Quote Request, Administrative Agent shall send to
the Banks by facsimile an invitation (an “Invitation for Bid Rate Quotes”)
substan­tially in the form of EXHIBIT G-2, which shall constitute an
invitation by Borrower to the Banks to submit Bid Rate Quotes offering to make
Bid Rate Loans to which such Bid Rate Quote Request relates in accordance with
this Section 2.02.

 18
 

 

(c)           (1) 
Each Bank may submit a Bid Rate Quote containing an offer or offers to make Bid
Rate Loans in response to any Invitation for Bid Rate Quotes. Each Bid Rate
Quote must comply with the requirements of this paragraph (c) and must be
submitted to Administrative Agent by facsimile not later than 10:00 a.m.
(New York time) on the third Banking Day prior to the proposed date of the Bid
Rate Loan(s); provided that Bid Rate Quotes submitted by the Bank
serving as Administrative Agent (or any Affiliate of the Bank serving as
Administrative Agent) in its capacity as a Bank may be submitted, and may only
be submitted, if the Bank serving as Administrative Agent or such Affiliate
notifies Borrower of the terms of the offer or offers contained therein not
later than fifteen (15) minutes prior to the deadline for the other Banks. Any
Bid Rate Quote so made shall (subject to Borrower’s satisfaction of the
conditions precedent set forth in this Agreement to its entitlement to an
advance) be irrevocable except with the written consent of Administrative Agent
given on the instructions of Borrower. Bid Rate Loans to be funded pursuant to
a Bid Rate Quote may, as provided in Section 12.16, be funded by a Bank’s
Designated Lender. A Bank making a Bid Rate Quote shall specify in its Bid Rate
Quote whether the related Bid Rate Loans are intended to be funded by such Bank’s
Designated Lender, as provided in Section 12.16.

(2)           Each
Bid Rate Quote shall be in substantially the form of EXHIBIT G-3 and shall
in any case specify:

(i)                    the
proposed date of funding of the Bid Rate Loan(s);

(ii)                   the
principal amount of the Bid Rate Loan(s) for which each such offer is
being made, which principal amount (w) may be greater than or less than
the applicable Loan Commitment of the quoting Bank, (x) must be in the
aggregate at least Five Million Dollars ($5,000,000) and an integral multiple
of One Hundred Thousand Dollars ($100,000), (y) may not exceed the
principal amount of Bid Rate Loans for which offers were requested and (z) may
be subject to an aggregate limitation as to the principal amount of Bid Rate
Loans for which offers being made by such quoting Bank may be accepted;

(iii)                  the
margin above or below the applicable LIBOR Interest Rate (the “LIBOR Bid
Margin”) offered for each such Bid Rate Loan, expressed as a percentage per
annum (specified to the nearest 1/1,000th of 1%) to be added to (or subtracted
from) the applicable LIBOR Interest Rate;

(iv)                  the
applicable Interest Period; and

(v)                   the
identity of the quoting Bank.

A Bid Rate Quote may set forth up to three (3) separate offers by
the quoting Bank with respect to each Interest Period specified in the related
Invitation for Bid Rate Quotes.

(3)           Any
Bid Rate Quote shall be disregarded if it:

(i)                    is
not substantially in conformity with EXHIBIT G-3 or does not specify all
of the information required by sub-paragraph (c)(2) above;

 19
 

 

(ii)                   contains
qualifying, conditional or similar language (except for an aggregate limitation
as provided in subparagraph (c)(2)(ii) above);

(iii)                  proposes
terms other than or in addition to those set forth in the applicable Invitation
for Bid Rate Quotes (except for an aggregate limitation as provided in
subparagraph (c)(2)(ii) above); or

(iv)                  arrives
after the time set forth in sub-paragraph (c)(1) above.

(d)           Administrative
Agent shall no later than 10:15 a.m. (New York City time) on the third
Banking Day prior to the proposed date for the requested Bid Rate Loan notify
Borrower in writing of the terms of any Bid Rate Quote submitted by a Bank that
is in accordance with paragraph (c). Any subsequent Bid Rate Quote shall be
disregarded by Administrative Agent unless such subsequent Bid Rate Quote is
submitted solely to correct a manifest error in such former Bid Rate Quote. Administrative
Agent’s notice to Borrower shall specify (A) the aggregate principal
amount of Bid Rate Loans for which offers have been received for each Interest
Period specified in the related Bid Rate Quote Request, (B) the respective
principal amounts and LIBOR Bid Margins so offered and (C) if applicable,
limitations on the aggregate principal amount of Bid Rate Loans for which
offers in any single Bid Rate Quote may be accepted.

(e)           Not later
than 11:00 a.m. (New York time) on the third Banking Day prior to the
proposed date of funding of the Bid Rate Loan, Borrower shall notify
Administrative Agent of its acceptance or non-acceptance of the offers so
notified to it pursuant to paragraph (d). A notice of acceptance shall be
substantially in the form of EXHIBIT G-4 and shall specify the aggregate
principal amount of offers for each Interest Period that are accepted. Borrower
may accept any Bid Rate Quote in whole or in part; provided that:

(i)                    the
principal amount of each Bid Rate Loan may not exceed the applicable amount set
forth in the related Bid Rate Quote Request or be less than Five Million
Dollars ($5,000,000) and shall be an integral multiple of One Hundred Thousand
Dollars ($100,000);

(ii)                   acceptance
of offers with respect to a particular Interest Period may only be made on the
basis of ascending LIBOR Bid Margins offered for such Interest Period from the
lowest effective cost; and

(iii)                  Borrower
may not accept any offer that is described in subparagraph (c)(3) or that
otherwise fails to comply with the requirements of this Agreement.

(f)            If offers
are made by two (2) or more Banks with the same LIBOR Bid Margins, for a
greater aggregate principal amount than the amount in respect of which such
offers are permitted to be accepted for the related Interest Period, the
principal amount of Bid Rate Loans in respect of which such offers are accepted
shall be allocated by Administrative Agent among such Banks as nearly as
possible (in multiples of One Hundred Thousand Dollars ($100,000), as
Administrative Agent may deem appropriate) in proportion to the aggregate
principal amounts of such offers. Administrative Agent shall promptly (and in
any event within one (1) Banking Day after such offers are accepted)
notify Borrower and each such Bank in 

 20
 

 

writing
of any such allocation of Bid Rate Loans. Determinations by Administrative
Agent of the allocation of Bid Rate Loans shall be conclusive in the absence of
manifest error.

(g)           In the
event that Borrower accepts the offer(s) contained in one (1) or more
Bid Rate Quotes in accordance with paragraph (e), the Bank(s) making such
offer(s) shall make a Bid Rate Loan in the accepted amount (as allocated,
if necessary, pursuant to paragraph (f)) on the date specified therefor, in
accordance with the procedures specified in Section 2.05.

(h)           Notwithstanding
anything to the contrary contained herein, each Bank shall be required to fund
its Pro Rata Share of the Available Total Loan Commitment in accordance with Section 2.01(b) despite
the fact that any Bank’s Loan Commitment may have been or may be exceeded as a
result of such Bank’s making Bid Rate Loans.

(i)            A Bank
who is notified that it has been selected to make a Bid Rate Loan as provided
above may designate its Designated Lender (if any) to fund such Bid Rate Loan
on its behalf, as described in Section 12.16. Any Designated Lender which
funds a Bid Rate Loan shall on and after the time of such funding become the
obligee under such Bid Rate Loan and be entitled to receive payment thereof
when due. No Bank shall be relieved of its obligation to fund a Bid Rate Loan,
and no Designated Lender shall assume such obligation, prior to the time the
applicable Bid Rate Loan is funded.

SECTION 2.03.   Swingline Loan Subfacility

(a)           Swingline
Commitment. Subject to the terms and conditions of this Section 2.03,
Swingline Lender, in its individual capacity, agrees to make certain revolving
credit loans in Dollars to Borrower (each a “Swingline Loan” and,
collectively, the “Swingline Loans”) from time to time during the term
hereof; provided, however, that the aggregate amount of Swingline Loans
outstanding at any time shall not exceed the lesser of (i) Seventy Five
Million Dollars ($75,000,000), and (ii) the Total Loan Commitment less the
sum of (A) all Loans then outstanding, excluding Swingline Loans, and (B) the
outstanding amount of all Letters of Credit (the “Swingline Commitment”).
Subject to the limitations set forth herein, any amounts repaid in respect of
Swingline Loans may be reborrowed.

(b)           Swingline
Borrowings.

(1)           Notice
of Borrowing. With respect to any Swingline Loan, Borrower shall give
Swingline Lender and Administrative Agent notice in writing which is received
by Swingline Lender and Administrative Agent not later than 2:00 p.m. (New
York City time) on the proposed date of such Swingline Loan (and confirmed by
telephone by such time), specifying (A) that a Swingline Loan is being
requested, (B) the amount of such Swingline Loan, (C) the proposed
date of such Swingline Loan, which shall be a Banking Day and (D) stating
that no Default or Event of Default has occurred and is continuing both before
and after giving effect to such Swingline Loan. Such notice shall be
irrevocable.

(2)           Minimum
Amounts. Each Swingline Loan shall be at least Three Million Dollars
($3,000,000) and, or an integral multiple of One Million Dollars ($1,000,000).

 21
 

 

(3)           Repayment
of Swingline Loans. Each Swingline Loan shall be due and payable on the
earliest of (A) five (5) Banking Days from and including the date of
such Swingline Loan, (B) the last calendar day of the month in which such
Swingline Loan is made or (C) the Maturity Date. If, and to the extent,
any Swingline Loans shall be due and payable on the date of any Ratable Loan,
such Swingline Loans shall first be repaid from the proceeds of such Ratable
Loan prior to the disbursement of the same to Borrower. If, and to the extent,
a Ratable Loan is not requested prior to the Maturity Date, the last calendar
day of the month in which such Swingline Loan is made, or the end of the five (5) Banking
Day period after such Swingline Loan was made, or unless Borrower shall have
notified Administrative Agent and the Swingline Lender prior to 1:00 p.m.
(New York City time) on the third (3rd) Banking Day after such Swingline Loan
was made that Borrower intends to reimburse Swingline Lender for the amount of
such Swingline Loan with funds other than proceeds of the Ratable Loans,
Borrower shall be deemed to have requested a Ratable Loan comprised entirely of
Base Rate Loans in the amount of the applicable Swingline Loan then
outstanding, the proceeds of which shall be used to repay such Swingline Loan
to Swingline Lender. In addition, if (x) Borrower does not repay a
Swingline Loan on or prior to the end of such five (5) Banking Day period,
or (y) a Default or Event of Default shall have occurred during such five (5) Banking
Day period, Swingline Lender may, at any time, in its sole discretion, by
written notice to the Borrower and Administrative Agent, demand repayment of
its Swingline Loans by way of a Ratable Loan, in which case the Borrower shall
be deemed to have requested a Ratable Loan comprised entirely of Base Rate
Loans in the amount of such Swingline Loans then outstanding, the proceeds of
which shall be used to repay such Swingline Loans to Swingline Lender. Any
Ratable Loan which is deemed requested by the Borrower in accordance with this Section 2.03(b)(3) is
hereinafter referred to as a “Mandatory Borrowing”. Each Bank hereby
irrevocably agrees to make Ratable Loans promptly upon receipt of notice from Swingline
Lender of any such deemed request for a Mandatory Borrowing in the amount and
in the manner specified in the preceding sentences and on the date such notice
is received by such Bank (or the next Banking Day if such notice is received
after 12:00 p.m. (New York City time)) notwithstanding (I) the amount
of the Mandatory Borrowing may not comply with the minimum amount of Ratable
Loans otherwise required hereunder, (II) whether any conditions specified
in Section 4.02 are then satisfied, (III) whether a Default or an
Event of Default then exists, (IV) failure of any such deemed request for
a Ratable Loan to be made by the time otherwise required in Section 2.06, (V) the
date of such Mandatory Borrowing (provided that such date must be a Banking
Day), or (VI) any termination of the Loan Commitments immediately prior to
such Mandatory Borrowing or contemporaneously therewith; provided, however,
that no Bank shall be obligated to make Ratable Loans in respect of a Mandatory
Borrowing if a Default or an Event of Default then exists and the applicable
Swingline Loan was made by Swingline Lender without receipt of a written notice
of borrowing in the form specified in Section 2.03(b)(1) or after
Administrative Agent has delivered a notice of Default or Event of Default
which has not been rescinded.

(4)           Purchase
of Participations. In the event that any Mandatory Borrowing cannot for any
reason be made on the date otherwise required above (including, without
limitation, as a result of the commencement of a proceeding under the
Bankruptcy Code with respect to the Borrower), then each Bank hereby agrees
that it shall forthwith 

 22
 

 

purchase (as of the date the Mandatory Borrowing would
otherwise have occurred, but adjusted for any payment received from the
Borrower on or after such date and prior to such purchase) from Swingline
Lender such participations in the outstanding Swingline Loans as shall be
necessary to cause each such Bank to share in such Swingline Loans ratably
based upon its Pro Rata Share (determined before giving effect to any
termination of the Loan Commitments), provided that (A) all interest
payable on the Swingline Loans with respect to any participation shall be for
the account of Swingline Lender until but excluding the day upon which the
Mandatory Borrowing would otherwise have occurred, and (B) in the event of
a delay between the day upon which the Mandatory Borrowing would otherwise have
occurred and the time any purchase of a participation pursuant to this sentence
is actually made, the purchasing Bank shall be required to pay to Swingline
Lender interest on the principal amount of such participation for each day from
and including the day upon which the Mandatory Borrowing would otherwise have
occurred to but excluding the date of payment for such participation, at the
rate equal to the Federal Funds Rate, for the two (2) Banking Days after
the date the Mandatory Borrowing would otherwise have occurred, and thereafter
at a rate equal to the Base Rate. Notwithstanding the foregoing, no Bank shall
be obligated to purchase a participation in any Swingline Loan if a Default or
an Event of Default then exists and such Swingline Loan was made by Swingline
Lender without receipt of a written notice of borrowing in the form specified
in Section 2.03(b)(1) or after Administrative Agent has delivered a
notice of Default or Event of Default which has not been rescinded.

(c)          Interest Rate. Each Swingline
Loan shall bear interest on the outstanding principal amount thereof, for each
day from the date such Swingline Loan is made until the date it is repaid, at a
rate per annum equal to the Base Rate plus the Applicable Margin for Base Rate
Loans.

SECTION 2.04.   Advances, Generally. The
Initial Advance shall be at least One Million Dollars ($1,000,000) and in an
integral multiple of One Hundred Thousand Dollars ($100,000) and shall be made
upon satisfaction of the conditions set forth in Section 4.01. Subsequent advances
shall be made no more frequently than weekly thereafter, upon satisfaction of
the conditions set forth in Section 4.02. The amount of each advance
subsequent to the Initial Advance shall, subject to Section 2.13, be at
least One Million Dollars ($1,000,000) (unless less than One Million Dollars
($1,000,000) is available for disbursement pursuant to the terms hereof at the
time of any subsequent advance, in which case the amount of such subsequent
advance shall be equal to such remaining availability) and in an integral
multiple of One Hundred Thousand Dollars ($100,000). Additional restrictions on
the amounts and timing of, and conditions to the making of, advances of Bid
Rate Loans and Swingline Loans are set forth in Sections 2.02 and 2.03, respectively.

Each advance shall be subject, in addition to the limitations and
conditions applicable to advances of the Loans generally, to Administrative
Agent’s receipt, on or immediately prior to the date the request for such
advance is made, of a certificate from the officer requesting the advance
certifying that Borrower is in compliance with all covenants enumerated in
paragraphs 3(a) and 3(b) of Section 6.09 and containing covenant
compliance calculations with respect to Sections 8.02 and 8.06 only, that include
the proforma adjustments 

 23
 

 

described below, which
calculations shall demonstrate Borrower’s compliance with covenants on a
proforma basis.

In connection with each advance of Loan proceeds, the following
proforma adjustments shall be made to the covenant compliance calculations
required with respect to Sections 8.02 and 8.06 as of the end of the most
recently ended calendar quarter for which financial results are required
hereunder to have been reported by Borrower:

(i)                    Total
Outstanding Indebtedness and Unsecured Indebtedness shall be adjusted by adding
thereto, respectively, all Indebtedness and Unsecured Indebtedness,
respectively, that is incurred by Borrower in connection with such advance;

(ii)                   Capitalization
Value, shall be adjusted by adding thereto the purchase price of any Real
Property Assets (including capitalized acquisition costs determined in
accordance with GAAP) or the Net Equity Value of any Operating Businesses,
together with the Borrower’s Pro Rata Share of any unrestricted cash or cash
equivalents, the book value of notes and mortgage loans receivable and
marketable securities and the cost of non-marketable securities that are
acquired in connection with such advance; and

(iii)                  Capitalization
Value of Unencumbered Assets shall be adjusted by adding thereto the purchase
price of any Real Property Assets (including capitalized acquisition costs
determined in accordance with GAAP) that are Unencumbered Assets together with
Borrower’s Pro Rata Share of any unrestricted cash and cash equivalents and the
book value of notes and mortgage loans receivable and marketable securities and
the cost of non-marketable securities that are acquired in connection with such
advance.

SECTION 2.05.   Procedures for Advances. In
the case of advances of Ratable Loans, Borrower shall submit to Administrative
Agent a request for each advance, stating the amount requested and the expected
purpose for which such advance is to be used, no later than 11:00 a.m.
(New York time) on the date, in the case of advances of Base Rate Loans, which
is one (1) Banking Day, and, in the case of advances of LIBOR Loans, which
is three (3) Banking Days, prior to the date such advance is to be made. In
the case of advances of Bid Rate Loans, Borrower shall submit a Bid Rate Quote
Request at the time specified in Section 2.02, accompanied by a statement
of the expected purpose for which such advance is to be used. In the case of
advances of Swingline Loans, Borrower shall submit a notice of borrowing at the
time specified in Section 2.03, accompanied by a statement of the expected
purpose for which such advance is to be used.  Administrative Agent, upon its receipt and
approval of the request for advance, will so notify the Banks by facsimile. Not
later than 11:30 a.m. (New York time) on the date of each advance, each
Bank (in the case of Ratable Loans) or the applicable Banks (in the case of Bid
Rate Loans) shall, through its Applicable Lending Office and subject to the
conditions of this Agreement, make the amount to be advanced by it on such day
available to Administrative Agent, at Administrative Agent’s Office and in
immediately available funds for the account of Borrower. The amount so received
by Administrative Agent shall, subject to the conditions of this Agreement, be
made available to Borrower, in immediately available funds, by Administrative
Agent’s to an account designated by Borrower.

 24

 

SECTION 2.06.   Interest Periods; Renewals.
In the case of the LIBOR Loans, Borrower shall select an Interest Period of any
duration in accordance with the definition of Interest Period in Section 1.01,
subject to the following limitations: (1) no Interest Period may extend
beyond the Maturity Date; (2) if an Interest Period would end on a day
which is not a Banking Day, such Interest Period shall be extended to the next
Banking Day, unless such Banking Day would fall in the next calendar month, in
which event such Interest Period shall end on the immediately preceding Banking
Day; and (3) only eight (8) discrete segments of a Bank’s Ratable
Loan bearing interest at a LIBOR Interest Rate for a designated Interest Period
pursuant to a particular Election, Conversion or Continuation, may be
outstanding at any one time (each such segment of each Bank’s Ratable Loan
corresponding to a proportionate segment of each of the other Banks’ Ratable
Loans).

Upon notice to Administrative Agent as provided in Section 2.14, Borrower
may Continue any LIBOR Loan on the last day of the Interest Period of the same
or different duration in accordance with the limitations provided above.

SECTION 2.07.   Interest. Borrower shall
pay interest to Administrative Agent for the account of the applicable Bank on
the outstanding and unpaid principal amount of the Loans, at a rate per annum
as follows: (1) for Base Rate Loans at a rate equal to the Base Rate plus
the Applicable Margin; (2) for LIBOR Loans at a rate equal to the
applicable LIBOR Interest Rate plus the Applicable Margin; and (3) for Bid
Rate Loans at a rate equal to the applicable LIBOR Bid Rate. Any principal
amount not paid when due (when scheduled, at acceleration or otherwise) shall
bear interest thereafter, payable on demand, at the Default Rate.

The interest rate on Base Rate Loans shall change when the Base Rate
changes. Interest on Base Rate Loans, LIBOR Loans and Bid Rate Loans shall not
exceed the maximum amount permitted under applicable law. Interest shall be
calculated for the actual number of days elapsed on the basis of three hundred
sixty (360) days.

Accrued interest shall be due and payable in arrears, (x) in the
case of both Base Rate Loans and LIBOR Loans, on the first Banking Day of each
calendar month and (y) in the case of Bid Rate Loans, at the expiration of
the Interest Period applicable thereto, but no less frequently than every three
(3) months determined on the basis of the first (1st)  day of the Interest Period applicable to the
Loan in question; provided, however, that interest accruing at
the Default Rate shall be due and payable on demand.

SECTION 2.08.   Fees. Borrower shall,
during the term of the Loans commencing as of the Closing Date, pay to
Administrative Agent for the account of each Bank a facility fee computed, on
the daily Loan Commitment of such Bank, in an amount equal to the daily  Facility Fee, calculated on the basis of a
year of three hundred sixty (360) days for the actual number of days elapsed. The
accrued facility fee shall be due and payable in arrears on the first Banking
Day of  January, April, July and October of
each year, commencing on the first such date after the Closing Date, and upon
the Maturity Date (as the case may be accelerated) or earlier termination of
the Loan Commitments.

SECTION 2.09.   Notes. The Ratable Loan and
Swingline Loans made by each Bank under this Agreement shall be evidenced by,
and repaid with interest in accordance with, a 

 25
 

 

promissory note of
Borrower in the form of EXHIBIT B duly completed and executed by Borrower, in
the principal amount equal to such Bank’s Loan Commitment, payable to such Bank
for the account of its Applicable Lending Office (each such note, as the same may
hereafter be amended, modified, extended, severed, assigned, substituted,
renewed or restated from time to time, including any substitute note pursuant
to Section 3.07 or 12.05, a “Ratable Loan Note”). The Bid Rate
Loans of the Banks shall be evidenced by a single global promissory note of
Borrower in the form of EXHIBIT C, duly completed and executed by Borrower, in
the principal amount of Five Hundred Million Dollars ($500,000,000), subject to
adjustment pursuant to Section 2.16(c) payable to Administrative
Agent for the account of the respective Banks making Bid Rate Loans (such note,
as the same may hereafter be amended, modified, extended, severed, assigned,
substituted, renewed or restated from time to time, the “Bid Rate Loan Note”).
A particular Bank’s Ratable Loan Note, together with its interest, if any, in
the Bid Rate Loan Note, are referred to collectively in this Agreement as such
Bank’s “Note”; all such Ratable Loan Notes and interests are referred to
collectively in this Agreement as the “Notes”. The Ratable Loan Notes
shall mature, and all outstanding principal and accrued interest and other sums
thereunder shall be paid in full, on the Maturity Date, or, in the case of
Swingline Loans, in accordance with Section 2.03, in either case as the
same may be accelerated. The outstanding principal amount of each Bid Rate Loan
evidenced by the Bid Rate Loan Note, and all accrued interest and other sums
with respect thereto, shall become due and payable to the Bank making such Bid
Rate Loan at the earlier of the expiration of the Interest Period applicable
thereto or the Maturity Date, as the same may be accelerated.

Each Bank is hereby authorized by Borrower to endorse on the schedule
attached to the Ratable Loan Note held by it, the amount of each advance, and
each payment of principal received by such Bank for the account of its
Applicable Lending Office(s) on account of its Ratable Loan, which
endorsement shall, in the absence of manifest error, be conclusive as to the
outstanding balance of the Ratable Loan made by such Bank. Administrative Agent
is hereby authorized by Borrower to endorse on the schedule attached to the Bid
Rate Loan Note the amount of each Bid Rate Loan, the name of the Bank making
the same, the date of the advance thereof, the interest rate applicable thereto
and the expiration of the Interest Period applicable thereto (i.e., the
maturity date thereof). The failure by Administrative Agent or any Bank to make
such notations with respect to the Loans or each advance or payment shall not
limit or otherwise affect the obligations of Borrower under this Agreement or
the Notes.

SECTION 2.10.   Prepayments.

Without prepayment premium or penalty but subject to Section 3.05,
Borrower may, upon at least one (1) Banking Day’s notice to Administrative
Agent in the case of the Base Rate Loans, and at least three (3) Banking
Days’ notice to Administrative Agent in the case of LIBOR Loans, prepay the
Ratable Loans in whole or, with respect to Base Rate Loans only, in part,
provided that (1) any partial prepayment under this Section shall be
in integral multiples of One Million Dollars ($1,000,000); and (2) each
prepayment under this Section shall include, at Administrative Agent’s
option, all interest accrued on the amount of principal prepaid to (but
excluding) the date of prepayment. Borrower shall have the right to prepay Bid
Rate Loans only with the consent of the Bank or the Designated Lender that
funded the Bid Rate Loan that Borrower desires to prepay. Borrower may, from
time to time on any Banking Day so long as prior notice is given to
Administrative Agent and Swingline Lender no later than 1:00 p.m. (New 

 26
 

 

York City time) on the
day on which Borrower intends to make such prepayment, prepay any Swingline
Loans in whole or in part in amounts aggregating at least One Hundred Thousand
Dollars ($100,000), and in an integral multiple of One Hundred Thousand Dollars
($100,000) (or, if less, the aggregate outstanding principal amount of all
Swingline Loans then outstanding) by paying the principal amount to be prepaid
together with accrued interest thereon to the date of prepayment by initiating
a wire transfer of the principal and interest on the Swingline Loans no later
than 1:00 P.M. (New York City time) on such day and Borrower shall deliver
a federal reference number evidencing such wire transfer to Administrative
Agent as soon as available thereafter on such day.

SECTION 2.11.   Method of Payment.

Borrower shall make each payment under this Agreement
and under the Notes not later than 1:00 p.m. (New York time) on the date
when due in Dollars to Administrative Agent at Administrative Agent’s Office in
immediately available funds. Borrower shall deliver federal reference number(s) evidencing
the applicable wire transfer(s) to Administrative Agent as soon as
available thereafter on such day. Administrative Agent will thereafter, on the
day of its receipt of each such payment(s), cause to be distributed to each
Bank (1) such Bank’s appropriate share (based upon the respective
outstanding principal amounts and interest due under the Notes of the Banks) of
the payments of principal and interest in like funds for the account of such
Bank’s Applicable Lending Office; and (2) fees payable to such Bank in
accordance with the terms of this Agreement. If and to the extent that the
Administrative Agent shall receive any such payment for the account of the
Banks on or before 11:00 a.m. (New York time) on any Business Day, and
Administrative Agent shall not have distributed to any Bank its applicable
share of such payment on such day, Administrative Agent shall distribute such
amount to such Bank together with interest thereon paid by the Administrative
Agent, for each day from the date such amount should have been distributed to
such Bank until the date Administrative Agent distributes such amount to such
Bank, at the Prime Rate.

Except to the extent provided in this Agreement,
whenever any payment to be made under this Agreement or under the Notes is due
on any day other than a Banking Day, such payment shall be made on the next
succeeding Banking Day, and such extension of time shall in such case be
included in the computation of the payment of interest and other fees, as the
case may be.

SECTION 2.12.   Elections, Conversions or
Continuation of Loans.

Subject to the provisions of Article III and
Sections 2.06 and 2.13, Borrower shall have the right to Elect to have all or a
portion of any advance of the Ratable Loans be LIBOR Loans, to Convert Base
Rate Loans into LIBOR Loans, to Convert LIBOR Loans into Base Rate Loans, or to
Continue LIBOR Loans as LIBOR Loans, at any time or from time to time, provided
that: (1) Borrower shall give Administrative Agent notice of each such
Election, Conversion or Continuation as provided in Section 2.14; and (2) a
LIBOR Loan may be Continued or Converted only on the last day of the applicable
Interest Period for such LIBOR Loan. Except as otherwise provided in this
Agreement, each Election, Continuation and Conversion shall be applicable to
each Bank’s Ratable Loan in accordance with its Pro Rata Share.

 27
 

 

SECTION 2.13.   Minimum Amounts.

With respect to the Ratable Loans as a whole, each
Election and each Conversion shall be in an amount at least equal to One
Million Dollars ($1,000,000) and in integral multiples of One Hundred Thousand
Dollars ($100,000).

SECTION 2.14.   Certain Notices Regarding
Elections, Conversions and Continuations of Loans.

Notices by Borrower to Administrative Agent of
Elections, Conversions and Continuations of LIBOR Loans shall be irrevocable
and shall be effective only if received by Administrative Agent not later than
11:00 a.m. (New York time) on the number of Banking Days prior to the date
of the relevant Election, Conversion or Continuation specified below:

	
  Notice

  	
   

  	
  Number of

  Banking Days Prior

  	
   

  
	
  Conversions into
  Base Rate Loans

  	
   

  	
  One
  (1)

  	
   

  
	
  Elections of,
  Conversions into or Continuations as LIBOR Loans

  	
   

  	
  Three (3)

  	
   

  

 

Promptly following its receipt of any such notice, Administrative Agent
shall so advise the Banks by facsimile. Each such notice of Election shall
specify the portion of the amount of the advance that is to be LIBOR Loans
(subject to Section 2.13) and the duration of the Interest Period
applicable thereto (subject to Section 2.06); each such notice of
Conversion shall specify the LIBOR Loans or Base Rate Loans to be Converted;
and each such notice of Conversion or Continuation shall specify the date of
Conversion or Continuation (which shall be a Banking Day), the amount thereof
(subject to Section 2.13) and the duration of the Interest Period
applicable thereto (subject to Section 2.06). In the event that Borrower
fails to Elect to have any portion of an advance of the Ratable Loans be LIBOR
Loans, the portion of such advance for which a LIBOR Loan Election is not made
shall constitute Base Rate Loans. In the event that Borrower fails to Continue
LIBOR Loans within the time period and as otherwise provided in this Section,
such LIBOR Loans will be automatically Converted into Base Rate Loans on the
last day of the then current applicable Interest Period for such LIBOR Loans.

SECTION 2.15.   Intentionally Omitted

SECTION 2.16.   Changes of  Loan Commitments.

(a)           At any
time, Borrower shall have the right, without premium or penalty, to terminate
any unused Loan Commitments existing as of the date of such termination, in
whole or in part, from time to time, provided that: (1) Borrower shall
give notice of each such termination to Administrative Agent (which shall
promptly notify each of the Banks) no later than 10:00 a.m. (New York
time) on the date which is three (3) Banking Days prior to the
effectiveness of such termination; (2) the Loan Commitments of each of the
Banks must be terminated (taking into account, however, Section 2.02(h))
and simultaneously with those of the other Banks; and (3) each partial
termination of the Loan Commitments in the aggregate (and corresponding
reduction of the Total Loan Commitment) shall be in an integral multiple of One
Million Dollars ($1,000,000). A reduction of the unused Loan Commitments
pursuant to this Section 2.16 shall not effect a reduction in the
Swingline Commitment (unless so elected by the Borrower) until the 

 28
 

 

aggregate
unused Loan Commitments have been reduced to an amount equal to or less than
the Swingline Commitment.

(b)            The Loan
Commitments and the Swingline Commitment, to the extent terminated, may not be
reinstated.

(c)           Unless a
Default or an Event of Default has occurred and is continuing, Borrower, by
written notice to Administrative Agent, may request on up to four (4) occasions
during the term of this Agreement that the Total Loan Commitment be increased
by an amount not less than Twenty Five Million Dollars ($25,000,000) per
request and not more than Two Hundred Fifty Million Dollars ($250,000,000) in
the aggregate (such that the Total Loan Commitment after such increase shall
never exceed One Billion Two Hundred Fifty Million Dollars ($1,250,000,000)); provided
that for any such request (a) the Borrower shall not have delivered an
Extension Notice prior to, or simultaneously with, such request, (b) any
Bank which is a party to this Agreement prior to such request for increase, at
its sole discretion, may elect to increase its Loan Commitment but shall not
have any obligation to so increase its Loan Commitment, and (c) in the
event that each Bank does not elect to increase its Loan Commitment, the Lead
Arrangers shall use commercially reasonable efforts to locate additional
Qualified Institutions willing to hold commitments for the requested increase,
and Borrower may also identify additional Qualified Institutions willing to
hold commitments for the requested increase; provided  however
that Administrative Agent shall have the right to approve any such additional
Qualified Institutions, which approval will not be unreasonably withheld or
delayed. In the event that Qualified Institutions commit to any such increase,
the Total Loan Commitment and the Loan Commitments of the committed Banks shall
be increased, the Pro Rata Shares of the Lenders shall be adjusted, new Notes
shall be issued, Borrower shall make such borrowings and repayments as shall be
necessary to effect the reallocation of the Ratable Loans so that the Ratable
Loans are held by the Banks in accordance with their Pro Rata Shares after
giving effect to such increase, and other changes shall be made to the Loan
Documents as may be necessary to reflect the aggregate amount, if any, by which
Banks have agreed to increase their respective Loan Commitments or make new
Loan Commitments in response to the Borrower’s request for an increase in the
Total Loan Commitment pursuant to this Section 2.16(c), in each case
without the consent of the Banks other than those Banks increasing their Loan
Commitments. The fees payable by Borrower upon any such increase in the Total
Loan Commitment shall be agreed upon by the Lead Arranger and Borrower at the
time of such increase.

Notwithstanding the foregoing, nothing in this Section 2.16(c) shall
constitute or be deemed to constitute an agreement by any Bank to increase its
Loan Commitment hereunder.

SECTION 2.17.   Letters of Credit.

(a)           Borrower,
by notice to Administrative Agent and the Fronting Bank, may request, in lieu
of advances of proceeds of the Ratable Loans, that the Fronting Bank issue
unconditional, irrevocable standby letters of credit (each, a “Letter of
Credit”) for the account of Borrower, payable by sight drafts, for such
beneficiaries and with such other terms as Borrower shall specify. Unless the
Fronting Bank has received written notice from the Administrative Agent, not
less than one (1) 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 

 29
 

 

4.02
shall not have been satisfied, then, subject to the terms and conditions
hereof, the Fronting Bank, on the requested date, shall issue a Letter of
Credit for the account of the Borrower or enter into the applicable amendment,
as the case may be, in each case in accordance with the Fronting Bank’s usual
and customary business practices. Promptly upon issuance of a Letter of Credit,
the Fronting Bank shall notify Administrative Agent and Administrative Agent
shall notify each of the Banks by telephone or by facsimile.

(b)           The amount
of any such Letter of Credit shall be limited to the lesser of (1) Four
Hundred Million Dollars ($400,000,000) less the aggregate face amount of all
other Letters of Credit then issued and outstanding or (2) the Available
Total Loan Commitment, it being understood that the amount of each Letter of
Credit issued and outstanding shall effect a reduction, by an equal amount, of
the Available Total Loan Commitment as provided in Section 2.01(b) (such
reduction to be allocated to each Bank’s Loan Commitment ratably in accordance
with the Banks’ respective Pro Rata Shares).

(c)           The amount
of each Letter of Credit shall be further subject to the conditions and
limitations applicable to amounts of advances set forth in Section 2.04
and the procedures for the issuance of each Letter of Credit shall be the same
as the procedures applicable to the making of advances as set forth in the
first sentence of Section 2.05.

(d)           The
Fronting Bank’s issuance of each Letter of Credit shall be subject to Borrower’s
satisfaction of all conditions precedent to its entitlement to an advance of
proceeds of the Loans.

(e)           Each
Letter of Credit shall (i) unless approved by the Administrative Agent and
the Fronting Bank, expire no later than the earlier of (x) fourteen (14)
days prior to the Maturity Date or (y), one (1) year after the date of its
issuance (without regard to any automatic renewal provisions thereof), and (ii) be
in a minimum amount of One Hundred Thousand Dollars ($100,000), or such lesser
amount approved by the Fronting Bank. In no event shall a Letter of Credit
expire later than the first anniversary of the Maturity Date. Notwithstanding
the foregoing, in the event that, with the approval of the Administrative Agent
and the Fronting Bank, any Letters of Credit are issued and outstanding on the
date that is fourteen (14) days prior to the Maturity Date, Borrower shall
deliver to Administrative Agent on such date by wire transfer of immediately
available funds a cash deposit in the amount of such Letters of Credit in
accordance with the provisions of Section 2.17(i). Such funds shall be
held by Administrative Agent in an interest bearing account and applied to
repay the Loans in the event of any drawing under such Letters of Credit on or
after the Maturity Date. Such funds, with any interest earned thereon, will be
returned to Borrower (and may be returned from time to time with respect to any
applicable Letter of Credit) on the earlier of (a) the date that the
applicable Letter of Credit or Letters of Credit expire in accordance with
their terms; and (b) the date that the applicable Letter of Credit or
Letters of Credit are cancelled.

(f)            In
connection with, and as a further condition to the issuance of, each Letter of
Credit, Borrower shall execute and deliver to the Fronting Bank an application
for the Letter of Credit in such form, and together with such other documents,
opinions and assurances, as the Fronting Bank shall reasonably require.

 30
 

 

(g)           In
connection with each Letter of Credit, Borrower hereby covenants to pay (i) to
Administrative Agent, quarterly in arrears (on the first Banking Day of each
calendar quarter following the issuance of such Letter of Credit), a fee,
payable to Administrative Agent for the account of the Banks, computed daily on
the face amount of such Letter of Credit issued and outstanding at a rate per
annum equal to the “Banks’ L/C Fee Rate” (as hereinafter defined) and (ii) to
the Fronting Bank, payable quarterly in arrears, a fee, payable to the Fronting
Bank for its own account, computed daily on the amount of such Letter of Credit
issued and outstanding at a rate per annum equal to 0.0125%. Administrative
Agent shall have no responsibility for the collection of the fee for any Letter
of Credit that is payable to the Fronting Bank. For purposes of this Agreement,
the “Banks’ L/C Fee Rate” shall mean, provided no Event of Default has occurred
and is continuing, a rate per annum equal to the Applicable Margin for LIBOR
Loans and, in the event an Event of Default has occurred and is continuing, a
rate per annum equal to 3%. It is understood and agreed that the last installment
of the fees provided for in this paragraph (g) with respect to any
particular Letter of Credit shall be due and payable on the first day of the
calendar quarter following the return, undrawn, or cancellation, of such Letter
of Credit.

(h)           The Fronting
Bank shall promptly notify Administrative Agent of any drawing under a Letter
of Credit issued by such Fronting Bank. The parties hereto acknowledge and
agree that, immediately upon notice from Administrative Agent of any drawing
under a Letter of Credit, each Bank shall, notwithstanding the existence of a
Default or Event of Default or the non-satisfaction of any conditions precedent
to the making of an advance of the Loans, advance proceeds of its Ratable Loan,
in an amount equal to its Pro Rata Share of such drawing, which advance shall
be made to Administrative Agent for disbursement to the Fronting Bank issuing
such Letter of Credit to reimburse the Fronting Bank, for its own account, for
such drawing. Each of the Banks further acknowledges that its obligation to
fund its Pro Rata Share of drawings under Letters of Credit as aforesaid shall
survive the Banks’ termination of this Agreement or enforcement of remedies
hereunder or under the other Loan Documents. If any Ratable Loan cannot for any
reason be made on the date otherwise required above (including, without
limitation, as a result of the commencement of a proceeding under any
applicable bankruptcy law with respect to Borrower), then each of the Banks
shall purchase (on the date such Ratable Loan would otherwise have been made)
from the Fronting Bank a participation interest in any unreimbursed drawing in
an amount equal to its Pro Rata Share of such unreimbursed drawing.

(i)            Borrower
agrees, upon and during the occurrence of an Event of Default and at the
request of Administrative Agent, (x) to deposit with Administrative Agent
cash collateral in the amount of all the outstanding Letters of Credit, which
cash collateral is hereby pledged and shall be held by Administrative Agent in
an account as security for Borrower’s obligations in connection with the
Letters of Credit and (y) to execute and deliver to Administrative Agent
such documents as Administrative Agent requests to confirm and perfect the
assignment of such cash collateral and such account to Administrative Agent for
the benefit of the Banks. Any such cash collateral deposited with
Administrative Agent shall be returned immediately to Borrower upon the cure of
such Event of Default.

(j)            It is
hereby acknowledged and agreed by the Borrower, the Administrative Agent and
all the Banks party hereto that on the Closing Date, the letters of credit
previously 

 31
 

 

issued
by Bank of America, N.A., and/or JPMorgan Chase Bank, N.A. (formerly known as
JPMorgan Chase Bank) as “Fronting Bank” under the Prior Credit Agreement, and
more particularly set forth on Exhibit K hereto, shall be
transferred to this Agreement and shall be deemed to be Letters of Credit
hereunder.

SECTION 2.18.   Extension Option. Borrower
may extend the Maturity Date one time only for a period of one (1) year
upon the following terms and conditions: (i) delivery by Borrower of a
written notice to Administrative Agent (the “Extension Notice”) on or
before a date that is not more than one hundred twenty (120) days nor less than
one (1) month prior to the Maturity Date, which Extension Notice
Administrative Agent shall promptly deliver to the Banks, which Extension
Notice shall include a certification dated as of the date of the Extension
Notice signed by a duly authorized signatory of Borrower, stating, to the best
of the certifying party’s knowledge, (x) all representations and
warranties contained in this Agreement and in each of the other Loan Documents
are true and correct on and as of the date of the Extension Notice and (y) no
Default or Event of Default has occurred and is continuing; (ii) no Event
of Default shall have occurred and be continuing both on the date Borrower
delivers the Extension Notice and on the original Maturity Date (the “Extension
Date”), and (iii) Borrower shall pay to Administrative Agent on or
before the Extension Date a fee equal to 0.15% of the Total Loan Commitment on
the Extension Date, which fee shall be distributed by Administrative Agent pro
rata to each of the Banks based on each Bank’s Pro Rata Share. Borrower’s
delivery of the Extension Notice shall be irrevocable.

ARTICLE III

YIELD PROTECTION; ILLEGALITY; ETC.

SECTION 3.01.   Additional Costs. Borrower
shall pay directly to each Bank from time to time on demand such amounts as
such Bank may reasonably determine to be necessary to compensate it for any
increased costs which such Bank determines are attributable to its making or
maintaining a LIBOR Loan or a Bid Rate Loan, or its obligation to make or
maintain a LIBOR Loan or a Bid Rate Loan, or its obligation to Convert a Base
Rate Loan to a LIBOR Loan hereunder, or any reduction in any amount receivable
by such Bank hereunder in respect of its LIBOR Loan or Bid Rate Loan(s) or
such obligations (such increases in costs and reductions in amounts receivable
being herein called “Additional Costs”), in each case resulting from any
Regulatory Change which:

(1)           changes
the basis of taxation of any amounts payable to such Bank under this Agreement
or the Notes in respect of any such LIBOR Loan or Bid Rate Loan (other than (i) changes
in the rate of general corporate, franchise, branch profit, net income or other
income tax imposed on such Bank or its Applicable Lending Office or (ii) a
tax described in Section 10.13); or

(2)           (other
than to the extent the LIBOR Reserve Requirement is taken into account in
determining the LIBOR Rate at the commencement of the applicable Interest
Period) imposes or modifies any reserve, special deposit, deposit insurance or
assessment, minimum capital, capital ratio or similar requirements relating to
any extensions of credit or other assets of, or any deposits with or other
liabilities of, such 

 32
 

 

Bank (including any LIBOR Loan or Bid Rate Loan or any
deposits referred to in the definition of “LIBOR Interest Rate” in Section 1.01),
or any commitment of such Bank (including such Bank’s Loan Commitment
hereunder); or

(3)           imposes
any other condition (unrelated to the basis of taxation referred to in
paragraph (1) above) affecting this Agreement or the Notes (or any of such
extensions of credit or liabilities).

Without limiting the effect of the provisions of the first paragraph of
this Section, in the event that, by reason of any Regulatory Change, any Bank
either (1) incurs Additional Costs based on or measured by the excess
above a specified level of the amount of a category of deposits or other
liabilities of such Bank which includes deposits by reference to which the
LIBOR Interest Rate is determined as provided in this Agreement or a category
of extensions of credit or other assets of such Bank which includes loans based
on the LIBOR Interest Rate or (2) becomes subject to restrictions on the
amount of such a category of liabilities or assets which it may hold, then, if
such Bank so elects by notice to Borrower (with a copy to Administrative
Agent), the obligation of such Bank to permit Elections of, to Continue, or to
Convert Base Rate Loans into, LIBOR Loans shall be suspended (in which case the
provisions of Section 3.04 shall be applicable) until such Regulatory
Change ceases to be in effect.

The obligations of Borrower under this Section shall survive the
repayment of all amounts due under or in connection with any of the Loan
Documents and the termination of the Loan Commitments in respect of the period
prior to such termination.

Determinations and allocations by a Bank for purposes of this Section of
the effect of any Regulatory Change pursuant to the first or second paragraph
of this Section, on its costs or rate of return of making or maintaining its
Loan or portions thereof or on amounts receivable by it in respect of its Loan
or portions thereof, and the amounts required to compensate such Bank under
this Section, shall be included in a calculation of such amounts given to
Borrower and shall be conclusive absent manifest error.

SECTION 3.02.   Limitation on Types of Loans.
Anything herein to the contrary notwithstanding, if, on or prior to the
determination of the LIBOR Interest Rate for any Interest Period:

(1)           Administrative
Agent reasonably determines (which determination shall be conclusive) that
quotations of interest rates for the relevant deposits referred to in the
definition of “LIBOR Interest Rate” in Section 1.01 are not being provided
in the relevant amounts or for the relevant maturities for purposes of
determining rates of interest for the LIBOR Loans or Bid Rate Loans as provided
in this Agreement; or

(2)           a
Bank reasonably determines (which determination shall be conclusive) and
promptly notifies Administrative Agent that the relevant rates of interest
referred to in the definition of “LIBOR Interest Rate” in Section 1.01
upon the basis of which the rate of interest for LIBOR Loans or Bid Rate Loans
for such Interest Period is to be determined do not adequately cover the cost
to such Bank of making or maintaining such LIBOR Loan or Bid Rate Loan for such
Interest Period;

 33
 

 

then Administrative Agent shall give Borrower prompt notice thereof,
and so long as such condition remains in effect, the Banks (or, in the case of
the circumstances described in clause (2) above, the affected Bank) shall
be under no obligation to permit Elections of LIBOR Loans, to Convert Base Rate
Loans into LIBOR Loans or to Continue LIBOR Loans and Borrower shall, on the
last day(s) of the then current Interest Period(s) for the affected
outstanding LIBOR Loans or Bid Rate Loans, either (x) prepay the affected
LIBOR Loans or Bid Rate Loans pursuant to Section 3.07 or (y) Convert
the affected LIBOR Loans into Base Rate Loans in accordance with Section 2.12
or convert the rate of interest under the affected Bid Rate Loans to the rate
applicable to Base Rate Loans by following the same procedures as are
applicable for Conversions into Base Rate Loans set forth in Section 2.12.

SECTION 3.03.   Illegality. Notwithstanding
any other provision of this Agreement, in the event that it becomes unlawful
for any Bank or its Applicable Lending Office to honor its obligation to make
or maintain a LIBOR Loan or Bid Rate Loan hereunder, to allow Elections or
Continuations of a LIBOR Loan or to Convert a Base Rate Loan into a LIBOR Loan,
then such Bank shall promptly notify Administrative Agent and Borrower thereof
and such Bank’s obligation to make or maintain a LIBOR Loan or Bid Rate Loan,
or to permit Elections of, to Continue, or to Convert its Base Rate Loan into,
a LIBOR Loan shall be suspended (in which case the provisions of Section 3.04
shall be applicable) until such time as such Bank may again make and maintain a
LIBOR Loan or Bid Rate Loan.

SECTION 3.04.   Treatment of Affected Loans.
If the obligations of any Bank to make or maintain a LIBOR Loan or a Bid Rate
Loan, or to permit an Election of a LIBOR Loan, to Continue its LIBOR Loan, or
to Convert its Base Rate Loan into a LIBOR Loan, are suspended pursuant to Section 3.01
or 3.03 (each LIBOR Loan or Bid Rate Loan so affected being herein called an “Affected
Loan”), such Bank’s Affected Loan shall be automatically Converted into a Base
Rate Loan (or, in the case of an Affected Loan that is a Bid Rate Loan, the
interest rate thereon shall be converted to the rate applicable to Base Rate
Loans) on the last day of the then current Interest Period for the Affected
Loan (or, in the case of a Conversion or conversion resulting from Section 3.01
or 3.03, on such earlier date as such Bank may specify to Borrower).

To the extent that such Bank’s Affected Loan has been so Converted (or
the interest rate thereon so converted), all payments and prepayments of
principal which would otherwise be applied to such Bank’s Affected Loan shall
be applied instead to its Base Rate Loan (or to its Bid Rate Loan bearing
interest at the converted rate) and such Bank shall have no obligation to
Convert its Base Rate Loan into a LIBOR Loan.

SECTION 3.05.   Certain Compensation. Other
than in connection with a Conversion of an Affected Loan, Borrower shall pay to
Administrative Agent for the account of the applicable Bank, upon the request
of such Bank through Administrative Agent which request includes a calculation
of the amount(s) due, such amount or amounts as shall be sufficient (in
the reasonable opinion of such Bank) to compensate it for any loss, cost or
expense which such Bank reasonably determines is attributable to:

(1)           any
payment or prepayment of a LIBOR Loan or Bid Rate Loan made by such Bank, or
any Conversion of a LIBOR Loan (or conversion of the rate of interest on a

 34

 

Bid Rate Loan) made by such Bank, in any such case on a date
other than the last day of an applicable Interest Period, whether by reason of
acceleration or otherwise;

(2)           any
failure by Borrower for any reason to Convert a LIBOR Loan or a Base Rate Loan
or to Continue a LIBOR Loan, as the case may be, to be Converted or Continued
by such Bank on the date specified therefor in the relevant notice under Section 2.14;

(3)           any
failure by Borrower to borrow (or to qualify for a borrowing of) a LIBOR Loan
or Bid Rate Loan which would otherwise be made hereunder on the date specified
in the relevant Election notice under Section 2.14 or Bid Rate Quote
acceptance under Section 2.02(e) given or submitted by Borrower; or

(4)           any
failure by Borrower to prepay a LIBOR Loan or Bid Rate Loan on the date
specified in a notice of prepayment.

Without limiting the foregoing, such compensation shall include an
amount equal to the present value (using as the discount rate an interest rate
equal to the rate determined under (2) below) of the excess, if any, of (1) the
amount of interest (less the Applicable Margin) which otherwise would have
accrued on the principal amount so paid, prepaid, Converted or Continued (or
not Converted, Continued or borrowed) for the period from the date of such
payment, prepayment, Conversion or Continuation (or failure to Convert,
Continue or borrow) to the last day of the then current applicable Interest
Period (or, in the case of a failure to Convert, Continue or borrow, to the
last day of the applicable Interest Period which would have commenced on the
date specified therefor in the relevant notice) at the applicable rate of
interest for the LIBOR Loan or Bid Rate Loan provided for herein, over (2) the
amount of interest (as reasonably determined by such Bank) based upon the
interest rate which such Bank would have bid in the London interbank market for
Dollar deposits, for amounts comparable to such principal amount and maturities
comparable to such period. A determination of any Bank as to the amounts
payable pursuant to this Section shall be conclusive absent manifest
error.

The obligations of Borrower under this Section shall survive the
repayment of all amounts due under or in connection with any of the Loan
Documents and the termination of the Loan Commitments in respect of the period
prior to such termination.

SECTION 3.06.   Capital Adequacy. If any
Bank shall have determined that, after the date hereof, the adoption of, or any
change in, any applicable law, rule or regulation regarding capital
adequacy, or any change in the interpretation or administration thereof by any
Governmental Authority, central bank or comparable agency charged with the
interpretation or administration thereof, or any request or directive regarding
capital adequacy (whether or not having the force of law) of any such
Governmental Authority, central bank or comparable agency, has or would have
the effect of reducing the rate of return on capital of such Bank (or its
Parent) as a consequence of such Bank’s obligations hereunder to a level below
that which such Bank (or its Parent) could have achieved but for such adoption,
change, request or directive (taking into consideration its policies with
respect to capital adequacy) by an amount deemed by such Bank to be material,
then from time to time, within fifteen (15) days after demand by such Bank
(with a copy to Administrative Agent), Borrower shall pay to such Bank such
additional 

 35
 

 

amount or amounts as will
compensate such Bank (or its Parent) for such reduction. A certificate of any
Bank claiming compensation under this Section, setting forth in reasonable
detail the basis therefor, shall be conclusive absent manifest error. The
obligations of Borrower under this Section shall survive the repayment of
all amounts due under or in connection with any of the Loan Documents and the
termination of the Loan Commitments in respect of the period prior to such
termination.

SECTION 3.07.   Substitution of Banks. If
any Bank (an “Affected Bank”) (i) makes demand upon Borrower for
(or if Borrower is otherwise required to pay) Additional Costs pursuant to Section 3.01,
(ii) is unable to make or maintain a LIBOR Loan or Bid Rate Loan as a
result of a condition described in Section 3.03, or clause (2) of Section 3.02
or (iii) has any increased costs as described in Section 3.06,
Borrower may, within ninety (90) days of receipt of such demand or notice (or
the occurrence of such other event causing Borrower to be required to pay
Additional Costs or causing the condition described in Section 3.03,
clause (2) of Section 3.02 or Section 3.06 to be applicable to
occur), as the case may be, give written notice (a “Replacement Notice”)
to Administrative Agent and to each Bank of Borrower’s intention either (x) to
prepay in full the Affected Bank’s Note and to terminate the Affected Bank’s
entire Loan Commitment or (y) to replace the Affected Bank with another
financial institution (the “Replacement Bank”) designated in such
Replacement Notice. After its replacement, an Affected Bank shall remain
entitled to the benefits of Sections 3.01, 3.06, 10.13 and 12.04 in respect of
the period prior to its replacement.

In the event Borrower opts to give the notice provided for in clause (x) above,
and if the Affected Bank shall not agree within thirty (30) days of its receipt
thereof to waive the payment of the Additional Costs in question or the effect
of the circumstances described in Section 3.03, clause (2) of Section 3.02
or Section 3.06, then, so long as no Default or Event of Default shall
exist, Borrower may (notwithstanding the provisions of clause (2) of Section 2.16(a))
terminate the Affected Bank’s entire Loan Commitment, provided that in
connection therewith it pays to the Affected Bank all outstanding principal and
accrued and unpaid interest under the Affected Bank’s Note, together with all
other amounts, if any, due from Borrower to the Affected Bank, including all
amounts properly demanded and unreimbursed under Sections 3.01 and 3.05. After
any termination as provided in this paragraph, an Affected Bank shall remain
entitled to the benefits of Sections 3.01, 3.06, 10.13 and 12.04 in respect of
the period prior to such termination.

In the event Borrower opts to give the notice provided for in clause (y) above,
and if (i) Administrative Agent shall, within thirty (30) days of its
receipt of the Replacement Notice, notify Borrower and each Bank in writing
that the Replacement Bank is reasonably satisfactory to Administrative Agent
and (ii) the Affected Bank shall not, prior to the end of such thirty (30)
day period, agree to waive the payment of the Additional Costs in question or
the effect of the circumstances described in Section 3.03, clause (2) of
Section 3.02, or Section 3.06 then the Affected Bank shall, so long
as no Default or Event of Default shall exist, assign its Note and all of its
rights and obligations under this Agreement to the Replacement Bank, and the
Replacement Bank shall assume all of the Affected Bank’s rights and
obligations, pursuant to an agreement, substantially in the form of an
Assignment and Assumption Agreement, executed by the Affected Bank and the
Replacement Bank. In connection with such assignment and assumption, the Replacement
Bank shall pay to the Affected Bank an amount equal to the 

 36
 

 

outstanding principal
amount under the Affected Bank’s Note plus all interest accrued thereon, plus
all other amounts, if any (other than the Additional Costs in question), then
due and payable to the Affected Bank; provided, however, that
prior to or simultaneously with any such assignment and assumption, Borrower
shall have paid to such Affected Bank all amounts properly demanded and
unreimbursed under Sections 3.01 and 3.05. Upon the effective date of such
assignment and assumption, the Replacement Bank shall become a Bank Party to
this Agreement and shall have all the rights and obligations of a Bank as set
forth in such Assignment and Assumption Agreement, and the Affected Bank shall
be released from its obligations hereunder, and no further consent or action by
any party shall be required. Upon the consummation of any assignment pursuant
to this Section, a substitute Ratable Loan Note shall be issued to the
Replacement Bank by Borrower, in exchange for the return of the Affected Bank’s
Ratable Loan Note. The obligations evidenced by such substitute note shall
constitute “Obligations” for all purposes of this Agreement and the other Loan
Documents. If the Replacement Bank is not incorporated under the laws of the
United States of America or a state thereof, it shall, prior to the first date
on which interest or fees are payable hereunder for its account, deliver to
Borrower and Administrative Agent a certification as to exemption from deduction
or withholding of any United States federal income taxes in accordance with Section 10.13.
Each Replacement Bank shall be deemed to have made the representations
contained in, and shall be bound by the provisions of, Section 10.13.  After any assignment as provided in this
paragraph, an Affected Bank shall remain entitled to the benefits of Sections
3.01, 3.06, 10.13 and 12.04 in respect of the period prior to such assignment.

Borrower,
Administrative Agent and the Banks shall execute such modifications to the Loan
Documents as shall be reasonably required in connection with and to effectuate
the foregoing.

SECTION 3.08.   Obligation of Banks to Mitigate.

Each Bank agrees that, as promptly as practicable
after such Bank has actual knowledge of the occurrence of an event or the
existence of a condition that would cause such Bank to become an Affected Bank
or that would entitle such Bank to receive payments under Sections 3.01, 3.02,
3.03 or 3.06, it will, to the extent not inconsistent with any applicable legal
or regulatory restrictions, use reasonable efforts (i) to make, issue,
fund, or maintain the Loan Commitment of such Bank or the affected Loans of
such Bank through another lending office of such Bank, or (ii) take such
other measures as such Bank may deem reasonable, if as a result thereof the
circumstances that would cause such Bank to be an Affected Bank would cease to
exist or the additional amounts that would otherwise be required to be paid to
such Bank pursuant to Sections 3.01, 3.02 3.03 or 3.06 would be reduced and if,
as determined by such Bank in its sole discretion, the making, issuing,
funding, or maintaining of such Loan Commitment or Loans through such other
lending office or in accordance with such other measures, as the case may be, would
not otherwise adversely affect such Loan Commitment or Loans or would not be
otherwise disadvantageous to the interests of such Bank.

 37
 

 

ARTICLE IV

CONDITIONS PRECEDENT

SECTION 4.01.   Conditions Precedent to the
Loans. The obligations of the Banks hereunder and the obligation of each
Bank to make the Initial Advance are subject to the condition precedent that
Administrative Agent shall have received on or before the Execution Date (other
than with respect to paragraphs (11), (14) and (18) below, which shall be
required by the Closing Date) each of the following documents, and each of the
following requirements shall have been fulfilled:

(1)           Fees
and Expenses. The payment of all fees and expenses owed to or incurred by
Administrative Agent (including, without limitation, the reasonable fees and
expenses of legal counsel);

(2)           Note.
The Ratable Loan Note for each Bank and the Bid Rate Loan Note for
Administrative Agent, each duly executed by Borrower;

(3)           Financial
Statements. Audited VRT Consolidated Financial Statements as of and for the
year ended December 31, 2005;

(4)           Certificates
of Limited Partnership/Trust. A copy of the Certificate of Limited
Partnership for Borrower and a copy of the articles of trust of General
Partner, each certified by the appropriate Secretary of State or equivalent
state official;

(5)           Agreements
of Limited Partnership/Bylaws. A copy of the Agreement of Limited
Partnership for Borrower and a copy of the bylaws of General Partner, including
all amendments thereto, each certified by the Secretary or an Assistant
Secretary of General Partner as being in full force and effect on the Execution
Date;

(6)           Good
Standing Certificates. A certified copy of a certificate from the Secretary
of State or equivalent state official of the states where Borrower and General
Partner are organized, dated as of the most recent practicable date, showing
the good standing or partnership qualification of (i) Borrower and (ii) General
Partner;

(7)           Foreign
Qualification Certificates. A certified copy of a certificate from the
Secretary of State or equivalent state official of the state where Borrower and
General Partner maintain their principal place of business, dated as of the
most recent practicable date, showing the qualification to transact business in
such state as a foreign limited partnership or foreign trust, as the case may
be, for (i) Borrower and (ii) General Partner;

(8)           Resolutions.
A copy of a resolution or resolutions adopted by the Board of Trustees of
General Partner, certified by the Secretary or an Assistant Secretary of
General Partner as being in full force and effect on the Execution Date,
authorizing the Loans provided for herein and the execution, delivery and
performance of the Loan Documents to be executed and delivered by General Partner
hereunder on behalf Borrower;

 38
 

 

(9)           Incumbency
Certificate. A certificate, signed by the Secretary or an Assistant
Secretary of General Partner and dated the Execution Date, as to the
incumbency, and containing the specimen signature or signatures, of the Persons
authorized to execute and deliver the Loan Documents to be executed and
delivered by it and Borrower hereunder;

(10)         Solvency
Certificate. A Solvency Certificate, duly executed, from Borrower;

(11)         Opinion
of Counsel for Borrower. Favorable opinions, dated as of the Closing Date,
from counsels for Borrower and General Partner, as to such matters as
Administrative Agent may reasonably request;

(12)         Authorization
Letter. The Authorization Letter, duly executed by Borrower;

(13)         Guaranty.
The Guaranty duly executed by General Partner;

(14)         Request
for Advance. A request for an advance in accordance with Section 2.05;

(15)         Certificate.
The following statements shall be true and Administrative Agent shall have
received a certificate dated as of the Execution Date signed by a duly
authorized signatory of Borrower stating, to the best of the certifying party’s
knowledge, the following:

(a)           All
representations and warranties contained in this Agreement and in each of the
other Loan Documents are true and correct on and as of the Execution Date as
though made on and as of such date, and

(b)           No
Default or Event of Default has occurred and is continuing, or could result
from the transactions contemplated by this Agreement and the other Loan
Documents;

(16)         Compliance
Certificate. A certificate of the sort required by paragraph (3) of Section 6.09;
and

(17)         Insurance.
Evidence of the insurance described in Section 5.17.

(18)         Prior
Credit Agreement. Repayment, with the proceeds of the Initial Advance, of
all loans under the Prior Credit Agreement and termination of the Prior Credit
Agreement.

SECTION 4.02.   Conditions Precedent to
Advances After the Initial Advance. The obligation of each Bank to make any
advance of the Loans or issue any Letter of Credit subsequent to the Initial
Advance shall be subject to satisfaction of the following conditions precedent:

 39
 

 

(1)           No
Default or Event of Default shall have occurred and be continuing, or could
result from the transactions contemplated by this Agreement and the other Loan
Documents, as of the date of such advance;

(2)           Each
of the representations and warranties of Borrower and General Partner contained
in this Agreement and in each of the other Loan Documents shall be true and
correct as of the date of the advance; and

(3)           Administrative
Agent shall have received a request for an advance in accordance with Section 2.05.

SECTION 4.03.   Deemed Representations. Each
request by Borrower for, and acceptance by Borrower of, an advance of proceeds
of the Loans or the issuance of any Letter of Credit, shall constitute a
representation and warranty by Borrower and General Partner that, as of both
the date of such request and the date of such advance (1) no Default or
Event of Default has occurred and is continuing, and (2) each of the
representations and warranties by Borrower and General Partner contained in
this Agreement and in each of the other Loan Documents is true and correct in
all material respects on and as of such date with the same effect as if made on
and as of such date, except where such representations and warranties expressly
relate to an earlier date. In addition, the request by Borrower for, and
acceptance by Borrower of, the Initial Advance shall constitute a
representation and warranty by Borrower and General Partner that, as of the
Closing Date, each certificate delivered pursuant to Section 4.01 is true
and correct.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

Borrower (and General Partner, if expressly included in Sections
contained in this Article) represents and warrants to Administrative Agent and
each Bank as follows:

SECTION 5.01.   Existence. Borrower is a
limited partnership duly organized and existing under the laws of the State of
Delaware, with its principal executive office in the State of New York, and is
duly qualified as a foreign limited partnership, properly licensed, in good
standing and has all requisite authority to conduct its business in each
jurisdiction in which it owns properties or conducts business except where the
failure to be so qualified or to obtain such authority would not constitute a
Material Adverse Change. Each of its Consolidated Businesses is duly organized,
validly existing and in good standing under the laws of its jurisdiction of
organization and has all requisite authority to conduct its business in each
jurisdiction in which it owns property or conducts business, except where the
failure to be so qualified or to obtain such authority would not constitute a
Material Adverse Change. General Partner is a REIT duly organized and existing
under the laws of the State of Maryland, with its principal executive office in
the State of New York, is duly qualified as a foreign corporation or trust and
properly licensed and in good standing in each jurisdiction where the failure
to qualify or be licensed would constitute a Material Adverse Change. The
common shares of beneficial interest of General Partner are listed on the New
York Stock Exchange.

 40
 

 

SECTION 5.02.   Corporate/Partnership Powers.
The execution, delivery and performance of this Agreement and the other Loan
Documents required to be delivered by Borrower hereunder are within its
partnership authority and the trust power of General Partner, have been duly
authorized by all requisite action, and are not in conflict with the terms of
any organizational instruments of such entity, or any instrument or agreement
to which Borrower or General Partner is a party or by which Borrower, General
Partner or any of their respective assets may be bound or affected.

SECTION 5.03.   Power of Officers. The
officers of General Partner executing the Loan Documents required to be
delivered by it on behalf of Borrower hereunder have been duly elected or
appointed and were fully authorized to execute the same at the time each such
Loan Document was executed.

SECTION 5.04.   Power and Authority; No
Conflicts; Compliance With Laws. The execution and delivery of, and the
performance of the obligations required to be performed by Borrower and General
Partner under, the Loan Documents do not and will not (a) violate any
provision of, or, except for those which have been made or obtained, require
any filing (other than SEC disclosure filings), registration, consent or
approval under, any Law (including, without limitation, Regulation U), order,
writ, judgment, injunction, decree, determination or award presently in effect
having applicability to either of them, (b) result in a breach of or
constitute a default under or require any consent under any indenture or loan
or credit agreement or any other agreement, lease or instrument to which either
of them may be a party or by which either of them or their properties may be
bound or affected except for consents which have been obtained or which if not
obtained is not likely to cause a Material Adverse Change to occur, (c) result
in, or require, the creation or imposition of any Lien, upon or with respect to
any of its properties now owned or hereafter acquired which would likely cause
a Material Adverse Change to occur, or (d) cause either of them to be in
default under any such Law, order, writ, judgment, injunction, decree,
determination or award or any such indenture, agreement, lease or instrument
which would likely cause a Material Adverse Change to occur; to the best of
their knowledge, Borrower and General Partner are in compliance with all Laws
applicable to them and their properties where the failure to be in compliance
would cause a Material Adverse Change to occur.

SECTION 5.05.   Legally Enforceable Agreements.
Each Loan Document is a legal, valid and binding obligation of Borrower and/or
General Partner, as the case may be, enforceable in accordance with its terms,
except to the extent that such enforcement may be limited by applicable
bankruptcy, insolvency and other similar laws affecting creditors’ rights
generally.

SECTION 5.06.   Litigation. Except as
disclosed in General Partner’s SEC Reports existing as of the date hereof,
there are no investigations, actions, suits or proceedings pending or, to its
knowledge, threatened against Borrower, General Partner or any of their
Affiliates before any court or arbitrator or any Governmental Authority
reasonably likely to (i) have a material effect on Borrower’s ability to
repay the Loans, (ii) result in a Material Adverse Change, or (iii) affect
the validity or enforceability of any Loan Document.

 41
 

 

SECTION 5.07.   Good Title to Properties. Borrower
and each of its Material Affiliates have good, marketable and legal title to
all of the properties and assets each of them purports to own (including,
without limitation, those reflected in the December 31, 2005 financial
statements referred to in Sections 4.01(3) and 5.15 and only with
exceptions which do not materially detract from the value of such property or
assets or the use thereof in Borrower’s and such Affiliate’s businesses, and
except to the extent that any such properties and assets have been encumbered
or disposed of since the date of such financial statements without violating
any of the covenants contained in Article VII or elsewhere in this
Agreement) and except where failure to comply with the foregoing would likely
result in a Material Adverse Change. Borrower and its Material Affiliates enjoy
peaceful and undisturbed possession of all leased property under leases which
are valid and subsisting and are in full force and effect, except to the extent
that the failure to be so would not likely result in a Material Adverse Change.

SECTION 5.08.   Taxes. Borrower and General
Partner have filed all tax returns (federal, state and local) required to be
filed and have paid all taxes, assessments and governmental charges and levies
due and payable without the imposition of a penalty, including interest and
penalties, except to the extent they are the subject of a Good Faith Contest or
where the failure to comply with the foregoing would not likely result in a
Material Adverse Change.

SECTION 5.09.   ERISA. To the knowledge of
Borrower, each Plan and Multiemployer Plan is in compliance in all material
respects with its terms and all applicable provisions of ERISA. Neither a
Reportable Event nor a Prohibited Transaction has occurred with respect to any
Plan that, assuming the taxable period of the transaction expired as of the
date hereof, could subject Borrower, General Partner or any ERISA Affiliate to
a tax or penalty imposed under Section 4975 of the Code or Section 502(i) of
ERISA in an amount that is in excess of $250,000; no Reportable Event has
occurred with respect to any Plan within the last six (6) years; no notice
of intent to terminate a Plan has been filed nor has any Plan been terminated
within the past five (5) years; neither Borrower nor General Partner is
aware of any circumstances which constitutes grounds under Section 4042 of
ERISA entitling the PBGC to institute proceedings to terminate, or appoint a
trustee to administer, a Plan, nor has the PBGC instituted any such
proceedings; Borrower, General Partner and the ERISA Affiliates have not incurred
any withdrawal liability with respect to a Multiemployer Plan which has not
been completely discharged or which is likely to result in a Material Adverse
Change; Borrower, General Partner and the ERISA Affiliates have met the minimum
funding requirements of Section 412 of the Code and Section 302 of
ERISA of each with respect to the Plans of each and except as disclosed in the
VRT Consolidated Financial Statements there was no Unfunded Current Liability
with respect to any Plan established or maintained by each as of the last day
of the most recent plan year of each Plan; and Borrower, General Partner and
the ERISA Affiliates have not incurred any liability to the PBGC under ERISA
(other than for the payment of premiums under Section 4007 of ERISA). None
of the assets of Borrower or General Partner under this Agreement constitute “plan
assets” of any “employee benefit plan” within the meaning of ERISA or of any “plan”
within the meaning of Section 4975(e)(1) of the Code, as interpreted
by the Internal Revenue Service and the U.S. Department of Labor in rules,
regulations, releases or bulletins or as interpreted under applicable case law.

SECTION 5.10.   No Default on Outstanding
Judgments or Orders. Borrower and General Partner have satisfied all judgments
which are not being appealed and are not in 

 42
 

 

default with respect to
any rule or regulation which is likely to result in a Material Adverse
Change or any judgment, order, writ, injunction or decree applicable to
Borrower or General Partner, of any court, arbitrator or federal, state,
municipal or other Governmental Authority, commission, board, bureau, agency or
instrumentality, domestic or foreign.

SECTION 5.11.   No Defaults on Other Agreements.
Except as disclosed to the Bank Parties in writing or as disclosed in General
Partner’s SEC Reports existing as of the date hereof, Borrower or General
Partner, to the best of their knowledge, are not a party to any indenture, loan
or credit agreement or any lease or other agreement or instrument or subject to
any partnership, trust or other restriction which is likely to result in a
Material Adverse Change. To the best of their knowledge, neither Borrower nor
General Partner is in default in any respect in the performance, observance or
fulfillment of any of the obligations, covenants or conditions contained in any
agreement or instrument which is likely to result in a Material Adverse Change.

SECTION 5.12.   Government Regulation. Neither
Borrower nor General Partner is subject to regulation under the Investment
Company Act of 1940.

SECTION 5.13.   Environmental Protection. To
Borrower’s knowledge, except as disclosed in General Partner’s SEC Reports
existing as of the date hereof, none of Borrower’s or its Affiliates’
properties contains any Hazardous Materials that, under any Environmental Law
currently in effect, (1) would impose liability on Borrower or General
Partner that is likely to result in a Material Adverse Change, or (2) is
likely to result in the imposition of a Lien on any assets of Borrower, General
Partner or any Material Affiliates that is likely to result in a Material
Adverse Change. To Borrower’s knowledge, neither it, General Partner nor any
Material Affiliates are in violation of, or subject to any existing, pending or
threatened investigation or proceeding by any Governmental Authority under any
Environmental Law that is likely to result in a Material Adverse Change.

SECTION 5.14.   Solvency. Borrower and
General Partner are, and upon consummation of the transactions contemplated by
this Agreement, the other Loan Documents and any other documents, instruments
or agreements relating thereto, will be, Solvent.

SECTION 5.15.   Financial Statements. The
VRT Consolidated Financial Statements most recently delivered to the Banks
prior to the date of this Agreement are in all material respects complete and
fairly present the financial condition and results of operations of the
subjects thereof as of the dates of and for the periods covered by such
statements, all in accordance with GAAP. There has been no Material Adverse
Change since the date of such most recently delivered VRT Consolidated
Financial Statements.

SECTION 5.16.   Valid Existence of Affiliates.
Each Material Affiliate is an entity duly organized and existing in good
standing under the laws of the jurisdiction of its formation. As to each
Material Affiliate, its correct name, the jurisdiction of its formation, Borrower’s
direct or indirect percentage of beneficial interest therein, and the type of
business in which it is primarily engaged, are set forth on EXHIBIT F. Borrower
and each of its Material Affiliates have the power to own their respective
properties and to carry on their respective businesses now being conducted. Each
Material Affiliate is duly qualified as a foreign corporation to do business
and is in good standing in every jurisdiction in which the nature of the 

 43
 

 

respective businesses
conducted by it or its respective properties, owned or held under lease, make
such qualification necessary and where the failure to be so qualified would
likely cause a Material Adverse Change.

SECTION 5.17.   Insurance. Borrower and
each of its Material Affiliates has in force paid insurance with financially
sound and reputable insurance companies or associations in such amounts and
covering such risks as are usually carried by companies engaged in the same or
a similar business and similarly situated.

SECTION 5.18.   Accuracy of Information; Full
Disclosure. Neither this Agreement nor any documents, financial statements,
reports, notices, schedules, certificates, statements or other writings
furnished by or on behalf of Borrower to Administrative Agent or any Bank in
connection with the negotiation of this Agreement or the consummation of the
transactions contemplated hereby, required herein to be furnished by or on
behalf of Borrower (other than projections which are made by Borrower in good
faith) or certified as being true and correct by or on behalf of the Borrower
to the Administrative Agent or any Bank in connection with the negotiation of
this Agreement or delivered hereunder (as modified or supplemented by other
information so certified) contains any untrue statement of a material fact or
omits to state any material fact necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading;
provided that, with respect to projected financial information, the Borrower
represents only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time. There is no fact which
Borrower has not disclosed to Administrative Agent and the Banks in writing or
that is not included in General Partner’s SEC Reports that materially affects
adversely or, so far as Borrower can now reasonably foresee, will materially
affect adversely the business or financial condition of Borrower or the ability
of Borrower to perform this Agreement and the other Loan Documents.

SECTION 5.19.   Use of Proceeds. All
proceeds of the Loans will be used by Borrower for advancing the business of
the Borrower and for working capital purposes. Neither the making of any Loan
nor the use of the proceeds thereof nor any other extension of credit hereunder
will violate the provisions of Regulations T, U, or X of the Federal Reserve
Board. No Swingline Loan shall be used more than once for the purpose of
refinancing another Swingline Loan, in whole or part.

SECTION 5.20.   Governmental Approvals. No
order, consent, approval, license, authorization, or validation of, or filing,
recording or registration with, or exemption by, any governmental or public
body or authority, or any subdivision thereof, is required to authorize, or is
required in connection with the execution, delivery and performance of any Loan
Document or the consummation of any of the transactions contemplated thereby
other than those that have already been duly made or obtained and remain in
full force and effect or those which, if not made or obtained, would not likely
result in a Material Adverse Change.

SECTION 5.2.   Principal Offices. As of the
Closing Date, the principal office, chief executive office and principal place
of business of Borrower and General Partner is 888 Seventh Avenue, New York,
NY  10019.

 44

 

SECTION
5.22.                 REIT Status. General Partner is qualified and
General Partner intends to continue to qualify as a REIT.

 

SECTION
5.23.                 Labor Matters. Except as disclosed on
EXHIBIT I, (i) as of the date hereof, there are no collective bargaining
agreements or Multiemployer Plans covering the employees of Borrower, General
Partner, or any ERISA Affiliate and (ii) neither Borrower, General Partner, nor
any ERISA Affiliate has suffered any strikes, walkouts, work stoppages or other
material labor difficulty within the last five years which would likely result
in a Material Adverse Change.

SECTION 5.24.                 Organizational
Documents. The documents delivered pursuant to
Section 4.01(4) and (5) constitute, as of the Closing Date, all of the
organizational documents of the Borrower and General Partner.   Borrower represents that it has delivered to
Administrative Agent true, correct and complete copies of each such
documents.  General Partner is the
general partner of the Borrower.  General
Partner holds (directly or indirectly) not less than seventy-nine percent (79%)
of the ownership interests in Borrower as of the Execution Date.

ARTICLE VI

AFFIRMATIVE COVENANTS

So long as any of the Notes shall remain unpaid or the Loan Commitments
remain in effect, or any other amount is owing by Borrower to any Bank
hereunder or under any other Loan Document, Borrower and General Partner shall
each:

SECTION 6.01.                 Maintenance
of Existence. Preserve and maintain its legal
existence and, if applicable, good standing in its jurisdiction of organization
and, if applicable, qualify and remain qualified as a foreign entity in each
jurisdiction in which such qualification is required, except to the extent that
failure to so qualify would not likely result in a Material Adverse Change.

SECTION 6.02.                 Maintenance
of Records. Keep adequate records and books of
account, in which entries will be made in accordance with GAAP in all material
respects, except as disclosed in Borrower’s or General Partner’s financial
statements, reflecting all of its financial transactions.

SECTION 6.03.                 Maintenance
of Insurance. At all times, maintain and keep in
force, and cause each of its Material Affiliates to maintain and keep in force,
insurance with financially sound and reputable insurance companies or
associations in such amounts and covering such risks as are usually carried by
companies engaged in the same or a similar business and similarly situated,
which insurance may provide for reasonable deductibiles from coverage thereof.

SECTION 6.04.                 Compliance
with Laws; Payment of Taxes. Comply in all
material respects with all Laws applicable to it or to any of its properties or
any part thereof, such compliance to include, without limitation, paying before
the same become delinquent all taxes, assessments and governmental charges
imposed upon it or upon any of its property, except to the 

 45
 

 

extent they
are the subject of a Good Faith Contest or the failure to so comply would not
cause a Material Adverse Change.

SECTION 6.05.                 Right
of Inspection. At any reasonable time and from time to
time upon reasonable notice, permit Administrative Agent or any Bank or any
agent or representative thereof (provided that, at Borrower's request,
Administrative Agent or such Bank, or such representative, must be accompanied
by a representative of Borrower), to examine and make copies and abstracts from
the records and books of account of, and visit the properties of, Borrower and
to discuss the affairs, finances and accounts of Borrower with the independent
accountants of Borrower.

SECTION 6.06.                 Compliance
With Environmental Laws. Comply in all material
respects with all applicable Environmental Laws and immediately pay or cause to
be paid all costs and expenses incurred in connection with such compliance,
except to the extent there is a Good Faith Contest or the failure to so comply
would not likely cause a Material Adverse Change.

SECTION 6.07.                 Payment
of Costs. Pay all fees and expenses of the
Administrative Agent required for the satisfaction of the conditions of this
Agreement.

SECTION 6.08.                 Maintenance
of Properties. Do all things reasonably necessary
to maintain, preserve, protect and keep its and its Affiliates' properties in
good repair, working order and condition except where the failure would not
result in a Material Adverse Change.

SECTION 6.09.                 Reporting
and Miscellaneous Document Requirements. Furnish
to Administrative Agent (which shall promptly distribute to each of the Banks):

(1)           Annual
Financial Statements.  As soon as
available and in any event within ninety-five (95) days after the end of each
Fiscal Year, the VRT Consolidated Financial Statements as of the end of and for
such Fiscal Year, and audited by Borrower's Accountants;

(2)           Quarterly
Financial Statements.  As soon as
available and in any event within fifty (50) days after the end of each
calendar quarter (other than the last quarter of the Fiscal Year), the
unaudited VRT Consolidated Financial Statements as of the end of and for such
calendar quarter, reviewed by Borrower's Accountants;

(3)           Certificate
of No Default and Financial Compliance. 
Within fifty (50) days after the end of each of the first three quarters
of each Fiscal Year and within ninety-five (95) days after the end of each
Fiscal Year, a certificate of the chief financial officer or treasurer of General
Partner (a) stating that, to the best of his or her knowledge, no Default or
Event of Default has occurred and is continuing, or if a Default or Event of
Default has occurred and is continuing, specifying the nature thereof and the
action which is proposed to be taken with respect thereto; (b) stating that the
covenants contained in Article VIII have been complied with (or specifying
those that have not been complied with) and including computations
demonstrating such compliance (or non-compliance); (c) setting forth all items
comprising Total Outstanding Indebtedness (including amount, 

 46
 

 

maturity,
interest rate and amortization requirements), Capitalization Value, Secured
Indebtedness, Combined EBITDA, Unencumbered Combined EBITDA, Interest Expense,
Unsecured Interest Expense and Unsecured Indebtedness; and (d) only at the end
of each Fiscal Year an estimate of Borrower's taxable income;

(4)           Certificate
of Borrower's Accountants.  Within
ninety-five (95) days after the end of each Fiscal Year, (a) a statement of
Borrower's Accountants who audited such financial statements to the effect that
in connection with their audit, nothing came to their attention that caused
them to believe that the Borrower failed to comply with the terms, covenants,
provisions or conditions of Article VIII.

(5)           Notice
of Litigation.  Promptly after the
commencement and knowledge thereof, notice of all actions, suits, and
proceedings before any court or arbitrator, affecting Borrower or General
Partner which, if determined adversely to Borrower or General Partner is likely
to result in a Material Adverse Change and which would be required to be
reported in Borrower's or General Partner's SEC Reports;

(6)           Notice
of ERISA Events.  Promptly after the
occurrence thereof, notice of any action or event described in clauses (c), (d)
or (f) of Section 9.01(7);

(7)           Notices
of Defaults and Events of Default. 
As soon as possible and in any event within ten (10) days after Borrower
becomes aware of the occurrence of a material Default or any Event of Default a
written notice setting forth the details of such Default or Event of Default
and the action which is proposed to be taken with respect thereto;

(8)           Sales
or Acquisitions of Assets.  Promptly
after the occurrence thereof, written notice of any Disposition or acquisition
of an individual asset (other than acquisitions or Dispositions of investments
such as certificates of deposit, Treasury securities and money market deposits
in the ordinary course of Borrower's cash management) in excess of Five Hundred
Million Dollars ($500,000,000) and, in the case of any acquisition of such an
asset, within ten (10) Banking Days after Administrative Agent's request,
copies of the agreements governing the acquisition and historical financial
information and Borrower's projections with respect to the property acquired;

(9)           Material
Adverse Change.  As soon as is
practicable and in any event within five (5) days after knowledge of the
occurrence of any event or circumstance which is likely to result in or has resulted
in a Material Adverse Change and which would be required to be reported in
General Partner's SEC Reports, written notice thereof;

(10)         Bankruptcy
of Tenants.  Promptly after becoming
aware of the same, written notice of the bankruptcy, insolvency or cessation of
operations of any tenant in any Real Property Asset of Borrower or in which
Borrower has an interest to which four percent (4%) or more of aggregate annual
minimum rent payable to Borrower directly or through its Consolidated
Businesses or UJVs is attributable;

(11)         Offices.  Thirty (30) days' prior written notice of any
change in the principal executive office of Borrower;

 47
 

 

 

(12)         Environmental
and Other Notices.  As soon as
possible and in any event within thirty (30) days after receipt, copies of all
Environmental Notices received by Borrower which are not received in the
ordinary course of business and which relate to a previously undisclosed
situation which is likely to result in a Material Adverse Change;

(13)         Insurance
Coverage.  Promptly, such information
concerning Borrower's insurance coverage as Administrative Agent may reasonably
request;

(14)         Proxy
Statements. Etc.  Promptly after the
sending or filing thereof, copies of all proxy statements, financial statements
and reports which Borrower or General Partner sends to its respective
shareholders, and copies of all regular, periodic and special reports, and all
registration statements, which Borrower or General Partner files with the SEC
or any Governmental Authority which may be substituted therefor, or with any
national securities exchange;

(15)         Rent
Rolls.  If reasonably requested by
the Administrative Agent, a rent roll, tenant sales report and operating
statement for each Consolidated Business that is a Real Property Business or indirectly
owned in whole or in part by Borrower;

(16)         Capital
Expenditures.  If reasonably
requested by the Administrative Agent, a schedule of such Fiscal Year's capital
expenditures and a budget for the next Fiscal Year's planned capital
expenditures for each Consolidated Business that is a Real Property Business;

(17)         Change
in Borrower's Credit Rating.  Within
two (2) Banking Days after Borrower's receipt of notice of any change in
Borrower's Credit Rating, written notice of such change; and

(18)         General
Information.  Promptly, such other
information respecting the condition or operations, financial or otherwise, of
Borrower or any properties of Borrower as Administrative Agent or any Bank may
from time to time reasonably request.

SECTION 6.10.                 Intentionally
Omitted.

SECTION 6.11.                 General
Partner Status.

(a)           Status.  General Partner shall at all times (i) cause
its common shares to be listed for trading on the New York Stock Exchange, and
(ii) maintain its status as a self-directed and self-administered REIT.

(b)           Indebtedness.  General Partner shall not, directly or
indirectly, create, incur, assume or otherwise become or remain directly or
indirectly liable with respect to any Debt (excluding any such liability in its
capacity as general partner of Borrower or arising as a matter of law), except:

(1)           the
Obligations; and

 48
 

 

 

(2)           Debt
of Borrower for which there is recourse to General Partner which, after giving
effect thereto, may be incurred or may remain outstanding without giving rise
to an Event of Default or Default.

(c)           Restriction on Fundamental Changes.

(1)           General
Partner shall not have an investment in any Person other than (i) Borrower or
indirectly through Borrower, (ii) the interests identified on EXHIBIT J as
being owned by General Partner, (iii) such investments which it holds as a
nominee of Borrower, and (iv) wholly owned Affiliates and Taxable REIT
Subsidiaries (as defined in the Code) but only to the extent the investment in
any wholly owned Affiliate or Subsidiary does not result in a Material Adverse
Change. 

(2)           General
Partner shall not acquire an interest in any property or assets other than (i)
securities and a general partnership interest issued by Borrower, (ii) the
interests identified on EXHIBIT J attached hereto, (iii) such investments which
it holds as a nominee of Borrower, and (iv) wholly owned Affiliates and Taxable
REIT Subsidiaries but only to the extent the acquisition of an interest in any
wholly-owned Affiliate or Taxable REIT Subsidiary does not result in a Material
Adverse Change.

 

ARTICLE VII

NEGATIVE COVENANTS

So long as any of the Notes shall remain unpaid, or the Loan
Commitments remain in effect, or any other amount is owing by Borrower to
Administrative Agent or any Bank hereunder or under any other Loan Document, Borrower
and General Partner shall each not do any or all of the following:

SECTION 7.01.                 Mergers,
Etc. Without the Required Banks' consent (which shall not
be unreasonably withheld) merge or consolidate with (except where Borrower or
General Partner is the surviving entity, or in a transaction of which the
purpose is to redomesticate such entity in another United Stated jurisdiction,
and no Default or Event of Default has occurred and is continuing), or sell,
assign, lease or otherwise dispose of (whether in one transaction or in a
series of transactions) all or substantially all of its assets (whether now
owned or hereafter acquired) or enter into any agreement to do any of the
foregoing.  Without the Required Banks' consent
(which shall not be unreasonably withheld) neither Borrower nor General Partner
shall liquidate, wind up or dissolve (or suffer any liquidation or dissolution)
or discontinue its business.

SECTION 7.02.                 Intentionally
Omitted

SECTION 7.03.                 Amendments
to Organizational Documents.

(a)           Amend  Borrower's
agreement of limited partnership or other organizational documents in any
manner that would result in a Material Adverse Change without the Required
Banks' consent, which consent shall not be unreasonably withheld.  Without 

 49
 

 

limitation of the
foregoing, no Person shall be admitted as a general partner of the Borrower
other than General Partner.

(b)           Amend General Partner's articles of
incorporation, bylaws, or other organizational documents in any manner that
would result in a Material Adverse Change without the Required Banks' consent,
which consent shall not be unreasonably withheld.

(c)           Make any "in-kind" transfer
of any of Borrower's property or assets to any of Borrower's constituent
partners if such transfer would result in an Event of Default without the
Required Banks' consent, which consent shall not be unreasonably withheld.

 

ARTICLE VIII

FINANCIAL COVENANTS

So long as any of the Notes shall remain unpaid, or the Loan
Commitments remain in effect, or any other amount is owing by Borrower to
Administrative Agent or any Bank under this Agreement or under any other Loan
Document, Borrower shall not permit or suffer:

SECTION 8.01.                 Equity
Value. At any time, Equity Value to be less than
Three Billion Dollars ($3,000,000,000).

SECTION
8.02.                   Ratio of Total Outstanding Indebtedness to
Capitalization Value.  At
any time, Total Outstanding Indebtedness to exceed sixty percent (60%) of
Capitalization Value; provided,  however, with respect to any
fiscal quarter in which Borrower or any of its Consolidated Businesses or UJVs
have acquired Real Property Assets, the ratio of Total Outstanding Indebtedness
to Capitalization Value as of the end of such fiscal quarter and the next
succeeding fiscal quarter may increase to 65%, provided such ratio does
not exceed 60% as of the end of the fiscal quarter immediately thereafter.

SECTION 8.03.                 Intentionally
Omitted

SECTION 8.04.                 Ratio
of Combined EBITDA to Fixed Charges. The ratio of
Combined EBITDA to Fixed Charges, each measured as of the most recently ended calendar
quarter, to be less than 1.40 to 1.00.

SECTION 8.05.                 Ratio
of Unencumbered Combined EBITDA to Unsecured Interest Expense.
The ratio of Unencumbered Combined EBITDA to Unsecured Interest Expense, each
measured as of the most recently ended calendar quarter, to be less than 1.50
to 1.00.

SECTION 8.06.                 Ratio
of Unsecured Indebtedness to Capitalization Value of Unencumbered Assets.
At any time, Unsecured Indebtedness to exceed sixty percent (60%) of
Capitalization Value of Unencumbered Assets; provided,  however,
with respect to any fiscal quarter in which Borrower or any of its Consolidated
Businesses or UJVs have acquired Real Property Assets, the ratio of Unsecured
Indebtedness to Capitalization Value of Unencumbered 

 50
 

 

Assets for
such fiscal quarter and the next succeeding fiscal quarter may increase to 65%,
provided such ratio does not exceed 60% as of the end of the fiscal
quarter immediately thereafter.

SECTION 8.07.                 Ratio
of Secured Indebtedness to Capitalization Value.
The ratio of Secured Indebtedness to Capitalization Value, each measured as of
the most recently ended calendar quarter, to exceed 50%.

 

ARTICLE IX

EVENTS OF DEFAULT

SECTION 9.01.                 Events
of Default. Any of the following events shall be
an "Event of Default":

(1)           If
Borrower shall fail to pay the principal of any Notes as and when due; or fail
to pay interest accruing on any Notes as and when due and such failure to pay
shall continue unremedied for five (5) days after the due date of such amount;
or fail to pay any fee or any other amount due under this Agreement or any
other Loan Document as and when due and such failure to pay shall continue
unremedied for five (5) days after notice by Administrative Agent of such
failure to pay; 

(2)           If
any representation or warranty made or deemed made by Borrower or General
Partner in this Agreement or in any other Loan Document or which is contained
in any certificate, document, opinion, financial or other statement furnished
at any time under or in connection with a Loan Document shall prove to have
been incorrect in any material respect on or as of the date made or deemed
made; 

(3)           If
Borrower shall fail (a) to perform or observe any term, covenant or agreement
contained in Section 6.11(a), Section 6.11(b), Article VII or Article VIII; or
(b) to perform or observe any term, covenant or agreement contained in this
Agreement (other than obligations specifically referred to elsewhere in this
Section 9.01) and such failure shall remain unremedied for thirty (30)
consecutive calendar days after notice thereof; provided, however,
that if any such default under clause (b) above cannot by its nature be cured
within such thirty (30) day grace period and so long as Borrower shall have
commenced cure within such thirty (30) day grace period and shall, at all times
thereafter, diligently prosecute the same to completion, Borrower shall have an
additional period to cure such default; provided, however, that,
in no event, is the foregoing intended to effect an extension of the Maturity
Date;

(4)           If
Borrower or General Partner shall fail (a) to pay any recourse Debt (other than
the payment obligations described in paragraph (1) of this Section 9.01 or
obligations that are recourse to Borrower or General Partner solely for fraud,
misappropriation, environmental liability and other normal and customary
bad-act carveouts to nonrecourse obligations) in an amount equal to or greater
than Fifty Million Dollars ($50,000,000) when due (whether by scheduled
maturity, required prepayment, 

 51
 

 

acceleration,
demand or otherwise) after the expiration of any applicable grace period, or
(b) to perform or observe any material term, covenant, or condition under any
agreement or instrument relating to any such Debt, when required to be
performed or observed, if the effect of such failure to perform or observe is
to accelerate, or to permit the acceleration of, after the giving of notice or
the lapse of time, or both (other than in cases where, in the judgment of the
Required Banks, meaningful discussions likely to result in (i) a waiver or cure
of the failure to perform or observe, or (ii) otherwise averting such
acceleration are in progress between Borrower and the obligee of such Debt),
the maturity of such Debt, or any such Debt shall be declared to be due and
payable, or required to be prepaid (other than by a regularly scheduled or
otherwise required prepayment), prior to the stated maturity thereof;

(5)           If
either Borrower or General Partner shall (a) generally not, or be unable to, or
shall admit in writing its inability to, pay its debts as such debts become
due; (b) make an assignment for the benefit of creditors, petition or apply to
any tribunal for the appointment of a custodian, receiver or trustee for it or
a substantial part of its assets; (c) commence any proceeding under any
bankruptcy, reorganization, arrangement, readjustment of debt, dissolution or
liquidation law or statute of any jurisdiction, whether now or hereafter in
effect; (d) have had any such petition or application filed or any such
proceeding shall have been commenced, against it, in which an adjudication or
appointment is made or order for relief is entered, or which petition,
application or proceeding remains undismissed or unstayed for a period of sixty
(60) days or more; (e) be the subject of any proceeding under which all or a
substantial part of its assets may be subject to seizure, forfeiture or
divestiture; (f) by any act or omission indicate its consent to, approval of or
acquiescence in any such petition, application or proceeding or order for relief
or the appointment of a custodian, receiver or trustee for all or any
substantial part of its property; or (g) suffer any such custodianship,
receivership or trusteeship for all or any substantial part of its property, to
continue undischarged for a period of sixty (60) days or more;

(6)           If
one or more judgments, decrees or orders for the payment of money in excess of
Fifty Million Dollars ($50,000,000) in the aggregate shall be rendered against
Borrower or General Partner, and any such judgments, decrees or orders shall
continue unsatisfied and in effect for a period of thirty (30) consecutive days
without being vacated, discharged, satisfied or stayed or bonded pending
appeal; 

(7)           If
any of the following events shall occur or exist with respect to any Plan: (a)
any Prohibited Transaction; (b) any Reportable Event; (c) the filing under
Section 4041 of ERISA of a notice of intent to terminate any Plan or the
termination of any Plan; (d) receipt of notice of an application by the PBGC to
institute proceedings under Section 4042 of ERISA for the termination of, or
for the appointment of a trustee to administer, any Plan, or the institution by
the PBGC of any such proceedings; (e) complete or partial withdrawal under
Section 4201 or 4204 of ERISA from a Multiemployer Plan or the reorganization,
insolvency, or termination of any Multiemployer Plan; or (f) a condition exists
which gives rise to imposition of a lien under Section 412(n) or (f) of the
Code on Borrower, General Partner or any ERISA 

 52
 

 

Affiliate,
and in each case above, if either (1) such event or conditions, if any, result
in Borrower, General Partner or any ERISA Affiliate being subject to any tax,
penalty or other liability to a Plan, Multiemployer Plan, the PBGC or otherwise
(or any combination thereof), or a lien described in clause (f) which in the
aggregate does not exceed or may not exceed Twenty Million Dollars
($20,000,000), and the same continues unremedied or unpaid for a period of
forty-five (45) consecutive days or (2) such event or conditions, if any, is
likely to result in Borrower, General Partner or any ERISA Affiliate being
subject to any tax, penalty or other liability to a Plan, Multiemployer Plan,
the PBGC or otherwise (or any combination thereof), or a lien described in
clause (f) which in the aggregate exceeds or may exceed Twenty Million Dollars
($20,000,000);

(8)           If
at any time General Partner is not a qualified REIT or its common shares are
not listed on the New York Stock Exchange;

(9)           If
at any time assets of the Borrower or General Partner constitute Plan assets
for ERISA purposes (within the meaning of C.F.R.  § 2510.3-101); or

(10)         A
default beyond applicable notice and grace periods (if any) under any of the
other Loan Documents.

SECTION 9.02.                 Remedies.
If any Event of Default shall occur and be continuing, Administrative Agent
shall, upon request of the Required Banks, by notice to Borrower, (1) terminate
the Loan Commitments, whereupon the Loan Commitments shall terminate and the
Banks shall have no further obligation to extend credit hereunder; and/or (2)
declare the unpaid balance of the Notes, all interest thereon, and all other
amounts payable under this Agreement to be forthwith due and payable, whereupon
such balance, all such interest, and all such amounts due under this Agreement
shall become and be forthwith due and payable, without presentment, demand,
protest, or further notice of any kind, all of which are hereby expressly
waived by Borrower; and/or (3) exercise any remedies provided in any of the
Loan Documents or by law; provided, however, that upon the occurrence of any
Event of Default specified in Section 9.01(5), the Loan Commitments shall
automatically terminate (and the Banks shall have no further obligation to
extend credit hereunder) and the unpaid balance of the Notes, all  interest thereon, and all other amounts
payable under this Agreement shall automatically be and become forthwith due
and payable, without presentment, demand, protest, or further notice of any kind,
all of which are hereby expressly waived by Borrower.

 

ARTICLE X

ADMINISTRATIVE AGENT; RELATIONS AMONG BANKS

SECTION 10.01.               Appointment,
Powers and Immunities of Administrative Agent.
Each Bank hereby irrevocably appoints and authorizes Administrative Agent to
act as its agent hereunder and under any other Loan Document with such powers
as are specifically delegated to Administrative Agent by the terms of this
Agreement and any other Loan Document, together with such other powers as are
reasonably incidental thereto. 
Administrative Agent shall have no duties or responsibilities except
those expressly set forth in this Agreement and any other Loan Document or
required by law, and shall not by reason of this Agreement be a 

 53
 

 

fiduciary or
trustee for any Bank except to the extent that Administrative Agent acts as an
agent with respect to the receipt or payment of funds (nor shall Administrative
Agent have any fiduciary duty to Borrower nor shall any Bank have any fiduciary
duty to Borrower or to any other Bank). 
Administrative Agent shall not be responsible to the Banks for any
recitals, statements, representations or warranties made by Borrower or any
officer, partner or official of Borrower or any other Person contained in this
Agreement or any other Loan Document, or in any certificate or other document
or instrument referred to or provided for in, or received by any of them under,
this Agreement or any other Loan Document, or for the value, legality,
validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or any other Loan Document or any other document or instrument
referred to or provided for herein or therein, for the perfection or priority
of any Lien securing the Obligations or for any failure by Borrower to perform
any of its obligations hereunder or thereunder. 
Administrative Agent may employ agents and attorneys-in-fact and shall
not be responsible, except as to money or securities received by it or its
authorized agents, for the negligence or misconduct of any such agents or
attorneys-in-fact selected by it with reasonable care.  Neither Administrative Agent nor any of its
directors, officers, employees or agents shall be liable or responsible for any
action taken or omitted to be taken by it or them hereunder or under any other
Loan Document or in connection herewith or therewith, except for its or their
own gross negligence or willful misconduct. 
Borrower shall pay any fee agreed to by Borrower and Administrative
Agent with respect to Administrative Agent's services hereunder.  Notwithstanding anything to the contrary
contained in this Agreement, Administrative Agent agrees with the Banks that
Administrative Agent shall perform its obligations under this Agreement in good
faith according to the same standard of care as that customarily exercised by
it in administering its own revolving credit loans.

SECTION 10.02.               Reliance
by Administrative Agent. Administrative Agent
shall be entitled to rely upon any certification, notice or other communication
(including any thereof by telephone, telex, telegram or cable) believed by it
to be genuine and correct and to have been signed or sent by or on behalf of
the proper Person or Persons, and upon advice and statements of legal counsel,
independent accountants and other experts selected by Administrative Agent.  Administrative Agent may deem and treat each
Bank as the holder of the Loan made by it for all purposes hereof and shall not
be required to deal with any Person who has acquired a participation in any
Loan or participation from a Bank.  As to
any matters not expressly provided for by this Agreement or any other Loan
Document, Administrative Agent shall in all cases be fully protected in acting,
or in refraining from acting, hereunder in accordance with instructions signed
by the Required Banks, and such instructions of the Required Banks and any
action taken or failure to act pursuant thereto shall be binding on all of the
Banks and any other holder of all or any portion of any Loan or participation.

SECTION 10.03.               Defaults.
Administrative Agent shall not be deemed to have knowledge of the occurrence of
a Default or Event of Default (other than an Event of Default pursuant to
Section 9.01(1)) unless Administrative Agent has received notice from a Bank or
Borrower specifying such Default or Event of Default and stating that such
notice is a "Notice of Default." In the event that Administrative
Agent receives such a notice of the occurrence of a Default or Event of
Default, Administrative Agent shall give prompt notice thereof to the Banks.  Administrative Agent, following consultation
with the Banks, shall (subject to Section 10.07 and Section 12.02) take such
action with respect to such Default or Event of Default which is continuing as
shall be directed by the Required Banks; provided that, unless and until

 54

 

Administrative Agent
shall have received such directions, Administrative Agent may take such action,
or refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable in the best interest of the Banks; and provided 
further that Administrative Agent shall not send a notice of Default,
Event of Default or acceleration to Borrower without the approval of the
Required Banks. In no event shall Administrative Agent be required to take any
such action which it determines to be contrary to law.

SECTION 10.04.   Rights
of Agent as a Bank.   With respect to its Loan Commitment and the Loan
provided by it, each Person serving as an Agent in its capacity as a Bank
hereunder shall have the same rights and powers hereunder as any other Bank and
may exercise the same as though it were not acting as such Agent, and the term
any “Bank” or “Banks” shall include each Person serving as an Agent in its
capacity as a Bank. Each Person serving as an Agent and its Affiliates may
(without having to account therefor to any Bank) accept deposits from, lend
money to (on a secured or unsecured basis), and generally engage in any kind of
banking, trust or other business with, Borrower (and any Affiliates of
Borrower) as if it were not acting as such Agent.

SECTION 10.05.   Indemnification
of Agents.   Each Bank agrees to indemnify each Agent (to the extent
not reimbursed under Section 12.04 or under the applicable provisions of
any other Loan Document, but without limiting the obligations of Borrower under
Section 12.04 or such provisions), for its Pro Rata Share of any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind and nature whatsoever which
may be imposed on, incurred by or asserted against such Agent in any way
relating to or arising out of this Agreement, any other Loan Document or any
other documents contemplated by or referred to herein or the transactions
contemplated hereby or thereby (including, without limitation, the costs and
expenses which Borrower is obligated to pay under Section 12.04) or under
the applicable provisions of any other Loan Document or the enforcement of any
of the terms hereof or thereof or of any such other documents or instruments;
provided that no Bank shall be liable for (1) any of the foregoing to the
extent they arise from the gross negligence or willful misconduct of the party
to be indemnified, (2) any loss of principal or interest with respect to
the Loan of any Person serving as an Agent or (3) any loss suffered by
such Agent in connection with a swap or other interest rate hedging arrangement
entered into with Borrower.

SECTION 10.06.   Non-Reliance
on Agents and Other Banks.   Each Bank agrees that it has,
independently and without reliance on any Agent or any other Bank, and based on
such documents and information as it has deemed appropriate, made its own
credit analysis of Borrower and the decision to enter into this Agreement and
that it will, independently and without reliance upon any Agent or any other
Bank, and based on such documents and information as it shall deem appropriate
at the time, continue to make its own analysis and decisions in taking or not
taking action under this Agreement or any other Loan Document. Each Agent shall
not be required to keep itself informed as to the performance or observance by
Borrower of this Agreement or any other Loan Document or any other document
referred to or provided for herein or therein or to inspect the properties or
books of Borrower. Except for notices, reports and other documents and
information expressly required to be furnished to the Banks by any Agent
hereunder, each Agent shall not have any duty or responsibility to provide any
Bank with any credit or other information concerning the affairs, financial
condition or

 

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business of Borrower (or
any Affiliate of Borrower) which may come into the possession of such Agent or
any of its Affiliates. Each Agent shall not be required to file this Agreement,
any other Loan Document or any document or instrument referred to herein or
therein for record, or give notice of this Agreement, any other Loan Document
or any document or instrument referred to herein or therein, to anyone.

SECTION 10.07.   Failure
of Administrative Agent to Act.   Except for action expressly required
of Administrative Agent hereunder, Administrative Agent shall in all cases be
fully justified in failing or refusing to act hereunder unless it shall have
received further assurances (which may include cash collateral) of the
indemnification obligations of the Banks under Section 10.05 in respect of
any and all liability and expense which may be incurred by it by reason of
taking or continuing to take any such action.

SECTION 10.08.   Resignation
or Removal of Administrative Agent.   Administrative Agent shall have
the right to resign at any time. Administrative Agent may be removed at any
time with cause by the Required Banks, provided that Borrower and the
other Banks shall be promptly notified in writing thereof. Upon any such
removal or resignation, the Required Banks shall have the right to appoint a
successor Administrative Agent which successor Administrative Agent, so long as
it is reasonably acceptable to the Required Banks, shall be that Bank then
having the greatest Loan Commitment. If no successor Administrative Agent shall
have been so appointed by the Required Banks and shall have accepted such
appointment within thirty (30) days after the Required Banks’ removal of the
retiring Administrative Agent, then the retiring Administrative Agent may, on
behalf of the Banks, appoint a successor Administrative Agent, which shall be
one of the Banks. The Required Banks or the retiring Administrative Agent, as
the case may be, shall upon the appointment of a successor Administrative Agent
promptly so notify in writing Borrower and the other Banks. Upon the acceptance
of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Administrative Agent, and the retiring Administrative Agent
shall be discharged from its duties and obligations hereunder. The rights and duties
of Administrative Agent to be vested in any successor Administrative Agent
shall include, without limitation, the rights and duties as Swingline Lender. After
any retiring Administrative Agent’s removal hereunder as Administrative Agent,
the provisions of this Article X shall continue in effect for its benefit
in respect of any actions taken or omitted to be taken by it while it was
acting as Administrative Agent.

SECTION 10.09.   Amendments
Concerning Agency Function. Notwithstanding anything to the contrary
contained in this Agreement, Administrative Agent shall not be bound by any
waiver, amendment, supplement or modification of this Agreement or any other
Loan Document which affects its duties, rights, and/or function hereunder or
thereunder unless it shall have given its prior written consent thereto.

SECTION 10.10.   Liability
of Administrative Agent.   Administrative Agent shall not have any
liabilities or responsibilities to Borrower on account of the failure of any
Bank to perform its obligations hereunder or to any Bank on account of the
failure of Borrower to perform its obligations hereunder or under any other
Loan Document.

 

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SECTION 10.11.   Transfer
of Agency Function.   Without the consent of Borrower or any Bank,
Administrative Agent may at any time or from time to time transfer its
functions as Administrative Agent hereunder to any of its offices wherever
located in the United States, provided that Administrative Agent shall promptly
notify in writing Borrower and the Banks thereof.

SECTION 10.12.   Non-Receipt
of Funds by Administrative Agent.   Unless Administrative Agent shall
have received notice from a Bank or Borrower (either one as appropriate being
the “Payor”) prior to the date on which such Bank is to make payment
hereunder to Administrative Agent of the proceeds of a Loan or Borrower is to
make payment to Administrative Agent, as the case may be (either such payment
being a “Required Payment”), which notice shall be effective upon
receipt, that the Payor will not make the Required Payment in full to
Administrative Agent, Administrative Agent may assume that the Required Payment
has been made in full to Administrative Agent on such date, and Administrative
Agent in its sole discretion may, but shall not be obligated to, in reliance
upon such assumption, make the amount thereof available to the intended recipient
on such date. If and to the extent the Payor shall not have in fact so made the
Required Payment in full to Administrative Agent, the recipient of such payment
shall repay to Administrative Agent forthwith on demand such amount made
available to it together with interest thereon, for each day from the date such
amount was so made available by Administrative Agent until the date
Administrative Agent recovers such amount, at the customary rate set by
Administrative Agent for the correction of errors among Banks for three (3) Banking
Days and thereafter at the Base Rate.

SECTION 10.13.   Withholding
Taxes.   Each Bank represents at all times during the term of this
Agreement that it is entitled to receive any payments to be made to it
hereunder without the withholding of any tax and will furnish to Administrative
Agent and Borrower such forms, certifications, statements and other documents
as Administrative Agent or Borrower may request from time to time to evidence
such Bank’s exemption from the withholding of any tax imposed by any
jurisdiction or to enable Administrative Agent or Borrower to comply with any
applicable Laws or regulations relating thereto. Without limiting the effect of
the foregoing, if any Bank is not created or organized under the laws of the
United States of America or any state thereof, such Bank will furnish to Administrative
Agent and Borrower Form W-8ECI or Form W-8BEN of the
United States Internal Revenue Service; or such other forms, certifications,
statements or documents, duly executed and completed by such Bank as evidence
of such Bank’s complete exemption from the withholding of United States tax
with respect thereto. Administrative Agent shall not be obligated to make any
payments hereunder to such Bank in respect of any Loan or participation or such
Bank’s Loan Commitment or obligation to purchase participations until such Bank
shall have furnished to Administrative Agent and Borrower the requested form,
certification, statement or document.

SECTION 10.14.   Pro
Rata Treatment.   Except to the extent otherwise provided, (1) each
advance of proceeds of the Ratable Loans shall be made by the Banks, (2) each
reduction of the amount of the Total Loan Commitment under Section 2.16
shall be applied to the Loan Commitments of the Banks and (3) each payment
of the facility fee accruing under Section 2.08 shall be made for the
account of the Banks, ratably according to the amounts of their respective Loan
Commitments.

 

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SECTION 10.15.   Sharing
of Payments Among Banks.   If a Bank shall obtain payment of any
principal of or interest on any Loan made by it through the exercise of any
right of setoff, banker’s lien or counterclaim, or by any other means
(including direct payment), and such payment results in such Bank receiving a
greater payment than it would have been entitled to had such payment been paid
directly to Administrative Agent for disbursement to the Banks, then such Bank
shall promptly purchase for cash from the other Banks participations in the
Loans made by the other Banks in such amounts, and make such other adjustments
from time to time as shall be equitable to the end that all the Banks shall
share ratably the benefit of such payment. To such end the Banks shall make
appropriate adjustments among themselves (by the resale of participations sold
or otherwise) if such payment is rescinded or must otherwise be restored. Borrower
agrees that any Bank so purchasing a participation in the Loans made by other
Banks may exercise all rights of setoff, banker’s lien, counterclaim or similar
rights with respect to such participation. Nothing contained herein shall
require any Bank to exercise any such right or shall affect the right of any
Bank to exercise, and retain the benefits of exercising, any such right with
respect to any other indebtedness of Borrower.

SECTION 10.16.   Possession
of Documents.   Each Bank shall keep possession of its own Ratable Loan
Note. Administrative Agent shall hold all the other Loan Documents and related
documents in its possession and maintain separate records and accounts with
respect thereto, and shall permit the Banks and their representatives access at
all reasonable times to inspect such Loan Documents, related documents, records
and accounts.

SECTION 10.17.   Syndication
Agents and Documentation Agents.   The Banks serving as Syndication
Agents, Documentation Agents, Managing Agents or Co-Agents shall have no duties
or obligations in such capacities.

ARTICLE XI

NATURE OF
OBLIGATIONS

SECTION 11.01.   Absolute
and Unconditional Obligations.   Borrower and General Partner
acknowledge and agree that their obligations and liabilities under this
Agreement and under the other Loan Documents shall be absolute and
unconditional irrespective of (1) any lack of validity or enforceability
of any of the Obligations, any Loan Documents, or any agreement or instrument
relating thereto; (2) any change in the time, manner or place of payment
of, or in any other term in respect of, all or any of the Obligations, or any
other amendment or waiver of or consent to any departure from any Loan
Documents or any other documents or instruments executed in connection with or
related to the Obligations; (3) any exchange or release of any collateral,
if any, or of any other Person from all or any of the Obligations; or (4) any
other circumstances which might otherwise constitute a defense available to, or
a discharge of, Borrower, General Partner or any other Person in respect of the
Obligations.

The obligations
and liabilities of Borrower and General Partner under this Agreement and the
other Loan Documents shall not be conditioned or contingent upon the pursuit by
any Bank or any other Person at any time of any right or remedy against
Borrower, General Partner or any other Person which may be or become liable in
respect of all or any part 

 

 58
 

 

of the Obligations or
against any collateral or security or guarantee therefor or right of setoff
with respect thereto.

SECTION 11.02.   Non-Recourse
to VRT Principals.   This Agreement and the obligations hereunder and
under the other Loan Documents are fully recourse to Borrower and General
Partner. Notwithstanding anything to the contrary contained in this Agreement,
in any of the other Loan Documents, or in any other instruments, certificates,
documents or agreements executed in connection with the Loans (all of the
foregoing, for purposes of this Section, hereinafter referred to, individually
and collectively, as the “Relevant Documents”), no recourse under or
upon any Obligation, representation, warranty, promise or other matter
whatsoever shall be had against any of the VRT Principals, and each Bank
expressly waives and releases, on behalf of itself and its successors and
assigns, all right to assert any liability whatsoever under or with respect to
the Relevant Documents against, or to satisfy any claim or obligation arising
thereunder against, any of the VRT Principals or out of any assets of the VRT
Principals, provided, however, that nothing in this Section shall
be deemed to (1) release Borrower or General Partner from any liability
pursuant to, or from any of its respective obligations under, the Relevant
Documents, or from liability for its fraudulent actions or fraudulent
omissions; (2) release any VRT Principals from personal liability arising
outside of the terms of this Agreement for its, his or her own fraudulent
actions, fraudulent omissions, misappropriation of funds, rents or insurance
proceeds, gross negligence or willful misconduct; (3) constitute a waiver
of any obligation evidenced or secured by, or contained in, the Relevant
Documents or affect in any way the validity or enforceability of the Relevant
Documents; or (4) limit the right of Administrative Agent and/or the Banks
to proceed against or realize upon any collateral hereafter given for the Loans
or any and all of the assets of Borrower or General Partner (notwithstanding
the fact that the VRT Principals have an ownership interest in Borrower or
General Partner and, thereby, an interest in the assets of Borrower or General
Partner) or to name Borrower or General Partner (or, to the extent that the
same are required by applicable law or are determined by a court to be
necessary parties in connection with an action or suit against Borrower,
General Partner or any collateral hereafter given for the Loans, any of the VRT
Principals) as a party defendant in, and to enforce against any collateral
hereafter given for the Loans and/or assets of Borrower or General Partner any
judgment obtained by Administrative Agent and/or the Banks with respect to, any
action or suit under the Relevant Documents so long as no judgment shall be
taken (except to the extent taking a judgment is required by applicable law or
determined by a court to be necessary to preserve Administrative Agent’s and/or
Banks’ rights against any collateral hereafter given for the Loans or Borrower
or General Partner, but not otherwise) or shall be enforced against any of the
VRT Principals or their assets.

ARTICLE XII

MISCELLANEOUS

SECTION 12.01.   Binding
Effect of Request for Advance.   Borrower agrees that, by its
acceptance of any advance of proceeds of the Loans under this Agreement or the
issuance of any Letter of Credit, it shall be bound in all respects by the
request for advance or Letter of Credit submitted on its behalf in connection
therewith with the same force and effect as 

 

 59
 

 

if Borrower had itself
executed and submitted the request for advance or Letter of Credit and whether
or not the request for advance is executed and/or submitted by an authorized
person.

SECTION 12.02.   Amendments
and Waivers.   No amendment or material waiver of any provision of this
Agreement or any other Loan Document nor consent to any material departure by
Borrower therefrom, shall in any event be effective unless the same shall be in
writing and signed by the Required Banks and, solely for purposes of its
acknowledgment thereof, Administrative Agent, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given, provided, however, that no amendment, waiver or
consent shall, unless in writing and signed by all the Banks do any of the
following: (1) reduce the principal of, or interest on, the Notes or any
fees due hereunder or any other amount due hereunder or under any other Loan
Document; (2) postpone any date fixed for any payment of principal of, or
interest on, the Notes or any fees or other amounts due hereunder or under any
other Loan Document; (3) change the definition of Required Banks; (4) amend
this Section 12.02 or any other provision requiring the consent of all the
Banks; (5) waive any default in payment under paragraph (1) of Section 9.01
or any default under paragraph (5) of Section 9.01; (6) increase
or decrease any Loan Commitment of any Bank (except changes in Loan Commitments
pursuant to Section 2.16); (7) release the Guaranty; (8) permit
the expiration date of any Letter of Credit to be after the Maturity Date; or (9) permit
the assignment or transfer by the Borrower or the General Partner of any of its
rights or obligations hereunder or under any other Loan Document; and provided 
further, that (A) an amendment, waiver or consent relating to the
time specified for payment of principal, interest and fees with respect to Bid
Rate Loans shall only be binding if in writing and signed by the affected Bank
or Designated Lender and (B) an amendment, waiver or consent relating to
the Swingline Loans shall only be binding if in writing and signed by the
Swingline Lender. Any advance of proceeds of the Loans made prior to or without
the fulfillment by Borrower of all of the conditions precedent thereto, whether
or not known to Administrative Agent and the Banks, shall not constitute a
waiver of the requirement that all conditions, including the non-performed
conditions, shall be required with respect to all future advances. No failure
on the part of Administrative Agent or any Bank to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof or preclude
any other or further exercise thereof or the exercise of any other right. The
remedies herein provided are cumulative and not exclusive of any remedies
provided by law. All communications from Administrative Agent to the Banks
requesting the Banks’ determination, consent, approval or disapproval (i) shall
be given in the form of a written notice to each Bank, (ii) shall be
accompanied by a description of the matter or thing as to which such
determination, approval, consent or disapproval is requested and (iii) shall
include Administrative Agent’s recommended course of action or determination in
respect thereof. Each Bank shall reply promptly, but in any event within
fifteen (15) Banking Days (or five (5) Banking Days with respect to any
decision to accelerate or stop acceleration of the Loan) after receipt of the
request therefor by Administrative Agent (the “Bank Reply Period”). Unless a
Bank shall give written notice to Administrative Agent that it objects to the
recommendation or determination of Administrative Agent within the Bank Reply
Period, such Bank shall be deemed to have approved or consented to such
recommendation or determination.

SECTION 12.03.   Intentionally
Omitted.

 

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SECTION 12.04.   Expenses;
Indemnification.   Borrower agrees to reimburse Administrative Agent on
demand for all reasonable costs, expenses, and charges (including, without
limitation, all reasonable fees and charges of engineers, appraisers and
external legal counsel) incurred by Administrative Agent in connection with the
Loans and to reimburse each of the Banks for reasonable legal costs, expenses
and charges incurred by each of the Banks in connection with the performance or
enforcement of this Agreement, the Notes, or any other Loan Documents; provided,
however, that Borrower is not responsible for costs, expenses and
charges incurred by the Bank Parties in connection with the administration or
syndication of the Loans (other than any administration fee payable to
Administrative Agent). Borrower agrees to indemnify Administrative Agent and
each Bank and their respective directors, officers, employees, agents and
affiliates from, and hold each of them harmless against, any and all losses,
liabilities, claims, damages or expenses incurred by any of them arising out of
or by reason of (x) any claims by brokers due to acts or omissions by
Borrower, (y) any investigation or litigation or other proceedings
(including any threatened investigation or litigation or other proceedings)
relating to any actual or proposed use by Borrower of the proceeds of the
Loans, including without limitation, the reasonable fees and disbursements of
counsel incurred in connection with any such investigation or litigation or
other proceedings or (z) third party claims or actions against any Bank or
Administrative Agent relating to or arising from this Agreement and the
transactions contemplated pursuant to this Agreement provided, however,
that such indemnification shall exclude any such losses, liabilities, claims,
damages or expenses incurred by reason of the gross negligence or willful
misconduct of the person to be indemnified.

The obligations of
Borrower under this Section shall survive the repayment of all amounts due
under or in connection with any of the Loan Documents and the termination of
the Loan Commitments.

SECTION 12.05.   Assignment;
Participation.   (a)  This Agreement shall be binding upon, and
shall inure to the benefit of, Borrower, Administrative Agent, the Banks and
their respective successors and permitted assigns. Neither the Borrower nor the
General Partner may assign or transfer any of its rights or obligations
hereunder or under any other Loan Document without the prior written consent of
all the Banks (and any attempted such assignment or transfer without such
consent shall be null and void).

(b)   Subject
to Section 12.05(e), prior to the occurrence of an Event of Default, any
Bank may at any time, grant to an existing Bank or one or more banks, finance
companies, insurance companies or other entities (a “Participant”) in
minimum amounts of not less than $5,000,000 (or any lesser amount in the case
of participations to an existing Bank) participating interests in its Loan
Commitment or any or all of its Loans. After the occurrence and during the
continuance of an Event of Default, any Bank may at any time grant to any
Person in any amount (also a “Participant”), participating interests in
its Loan Commitment or any or all of its Loans.  Any participation made during the continuation
of an Event of Default shall not be affected by the subsequent cure of such
Event of Default. In the event of any such grant by a Bank of a participating
interest to a Participant, whether or not upon notice to Borrower and
Administrative Agent, such Bank shall remain responsible for the performance of
its obligations hereunder, and Borrower and Administrative Agent shall continue
to deal solely and directly with such Bank in connection with such Bank’s
rights and obligations under this Agreement. Any agreement pursuant to which
any Bank may grant such a participating interest shall provide that such Bank 

 

 61
 

 

shall retain the sole
right and responsibility to enforce the obligations of Borrower hereunder and
under any other Loan Document including, without limitation, the right to
approve any amendment, modification or waiver of any provision of this
Agreement or any other Loan Document; provided that such participation
agreement may provide that such Bank will not agree to any modification,
amendment or waiver of this Agreement described in clause (1), (2), (3),
(4), (5), (6) or (7) of Section 12.02 without the consent of the
Participant (subject to the final proviso of the first sentence of Section 12.02).
The Borrower agrees that each Participant shall, to the extent provided in its
participation agreement, be entitled to the benefits of Article III with
respect to its participating interest.

(c)   Subject
to Section 12.05(e), any Bank may at any time assign to a Qualified
Institution (in each case, an “Assignee”) (i) prior to the
occurrence of an Event of Default, in minimum amounts of not less than Five
Million Dollars ($5,000,000) and integral multiples of One Million Dollars
($1,000,000) thereafter (or any lesser amount in the case of assignments to an
existing Bank) and (ii) after the occurrence and during the continuance of
an Event of Default, in any amount, all or a proportionate part of all, of its
rights and obligations under this Agreement, the Notes and the other Loan
Documents, and, in either case, such Assignee shall assume such rights and
obligations, pursuant to an Assignment and Assumption Agreement executed by
such Assignee and such transferor Bank; provided, that such assignment shall be
subject to the consent of the Administrative Agent and the Fronting Bank and if
no Event of Default shall have occurred and be continuing, the consent of
Borrower, which consents shall not be unreasonably withheld or delayed; and provided 
further that if an Assignee is a Bank Affiliate of such transferor Bank
or was a Bank immediately prior to such assignment, no such consent shall be
required; and provided  further that such assignment may,
but need not, include rights of the transferor Bank in respect of outstanding
Bid Rate Loans. Upon execution and delivery of such instrument and payment by
such Assignee to such transferor Bank of an amount equal to the purchase price
agreed between such transferor Bank and such Assignee, such Assignee shall be a
Bank party to this Agreement and shall have all the rights and obligations of a
Bank with a Loan Commitment as set forth in such Assignment and Assumption
Agreement, and no further consent or action by any party shall be required and
the transferor Bank shall be released from its obligations hereunder to a
corresponding extent. Upon the consummation of any assignment pursuant to this
subsection (c), the transferor Bank, Administrative Agent and Borrower shall
make appropriate arrangements so that, if required, a new Note is issued to the
Assignee. In connection with any such assignment (other than an assignment by a
Bank to an affiliate), the transferor Bank shall pay to Administrative Agent an
administrative fee for processing such assignment in the amount of $3,500. If
the Assignee is not incorporated under the laws of the United States of America
or a state thereof, it shall, prior to the first date on which interest or fees
are payable hereunder for its account, deliver to Borrower and Administrative
Agent certification as to exemption from deduction or withholding of any United
States federal income taxes in accordance with Section 10.13. Any
assignment made during the continuation of an Event of Default shall not be
affected by any subsequent cure of such Event of Default.

(d)   Any Bank
may at any time assign all or any portion of its rights under this Agreement
and its Note to a Federal Reserve Bank. No such assignment shall release the
transferor Bank from its obligations hereunder.

 

 62
 

 

(e)   Except
as provided in Section 12.05(d), so long as no Event of Default shall have
occurred and be continuing, no Bank shall be permitted to enter into an
assignment of, or sell a participation interest in, its Loans and Loan
Commitment, which would result in such Bank holding Loans and a Loan
Commitment, without Participants, of less than Ten Million Dollars
($10,000,000) unless as a result of a decrease of the aggregate Loan
Commitments pursuant to Section 2.16; provided, however,
that no Bank shall be prohibited from assigning its entire Loans and Commitment
so long as such assignment is otherwise permitted hereby.

(f)   Borrower
recognizes that in connection with a Bank’s selling of Participations or making
of assignments, any or all documentation, financial statements and other data,
or copies thereof, relevant to Borrower or the Loans may be exhibited to and
retained by any such Participant or assignee or prospective Participant or
assignee. In connection with a Bank’s delivery of any financial statements and
appraisals to any such Participant or assignee or prospective Participant or
assignee, such Bank shall also indicate that the same are delivered on a
confidential basis. Borrower agrees to provide all assistance reasonably
requested by a Bank to enable such Bank to sell Participations or make
assignments of its Loan and Loan Commitment as permitted by this Section 12.05.
Each Bank agrees to provide Borrower with advance notice of all Participations
to be sold by such Bank.

SECTION 12.06.   Documentation
Satisfactory.   All documentation required from or to be submitted on
behalf of Borrower in connection with this Agreement and the documents relating
hereto shall be subject to the prior approval of, and be satisfactory in form
and substance to, Administrative Agent, its counsel and, where specifically
provided herein, the Banks. In addition, the persons or parties responsible for
the execution and delivery of, and signatories to, all of such documentation,
shall be acceptable to, and subject to the approval of, Administrative Agent
and its counsel and the Banks.

SECTION 12.07.   Notices.   Unless
the party to be notified otherwise notifies the other parties in writing as
provided in this Section, and except as otherwise provided in this Agreement,
notices shall be given to Administrative Agent by telephone, confirmed by
writing, and to the Banks and to Borrower and General Partner by ordinary mail
or overnight courier or telecopy, receipt confirmed, addressed to such party at
its address on the signature page of this Agreement. Notices shall be
effective: (1) if by telephone, at the time of such telephone
conversation, (2) if given by mail, three (3) calendar days after
mailing; (3) if given by overnight courier, upon receipt; and (4) if
given by telecopy, upon receipt.

SECTION 12.08.   Setoff.   Upon
the occurrence of an Event of Default, to the extent permitted or not expressly
prohibited by applicable law, Borrower and General Partner agree that, in
addition to (and without limitation of) any right of setoff, bankers’ lien or
counterclaim a Bank may otherwise have, each Bank shall be entitled, at its
option, to offset balances (general or special, time or demand, provisional or
final) held by it for the account of Borrower or General Partner at any of such
Bank’s offices, in Dollars or in any other currency, against any amount payable
by Borrower or General Partner to such Bank under this Agreement or such Bank’s
Note, or any other Loan Document, which is not paid when due (regardless of
whether such balances are then due to Borrower or General Partner), in which
case it shall promptly notify Borrower, General Partner and Administrative
Agent thereof; provided that such Bank’s failure to give such notice
shall not affect the validity thereof. Payments by Borrower or 

 

 63
 

 

General Partner hereunder
or under the other Loan Documents shall be made without setoff or counterclaim.

SECTION 12.09.   Table
of Contents; Headings.   Any table of contents and the headings and
captions hereunder are for convenience only and shall not affect the
interpretation or construction of this Agreement.

SECTION 12.10.   Severability.   The
provisions of this Agreement are intended to be severable. If for any reason
any provision of this Agreement shall be held invalid or unenforceable in whole
or in part in any jurisdiction, such provision shall, as to such jurisdiction,
be ineffective to the extent of such invalidity or unenforceability without in
any manner affecting the validity or enforceability thereof in any other
jurisdiction or the remaining provisions hereof in any jurisdiction.

SECTION 12.11.   Counterparts.   This
Agreement may be executed in any number of counterparts, all of which taken
together shall constitute one and the same instrument, and any party hereto may
execute this Agreement by signing any such counterpart.

SECTION 12.12.   Integration.   The
Loan Documents set forth the entire agreement among the parties hereto relating
to the transactions contemplated thereby (except with respect to agreements
relating solely to compensation, consideration and the coordinated syndication
of the Loan) and supersede any prior oral or written statements or agreements
with respect to such transactions.

SECTION 12.13.   Governing
Law.   This Agreement shall be governed by, and interpreted and
construed in accordance with, the laws of the State of New York.

SECTION 12.14.   Waivers.   To
the extent permitted or not expressly prohibited by applicable law, in
connection with the obligations and liabilities as aforesaid, Borrower and
General Partner hereby waive (1) notice of any actions taken by any Bank
Party under this Agreement, any other Loan Document or any other agreement or
instrument relating hereto or thereto except to the extent otherwise provided
herein; (2) all other notices, demands and protests, and all other
formalities of every kind in connection with the enforcement of the
Obligations, the omission of or delay in which, but for the provisions of this Section 12.14,
might constitute grounds for relieving Borrower or General Partner of their
obligations hereunder; (3) any requirement that any Bank Party protect,
secure, perfect or insure any Lien on any collateral or exhaust any right or
take any action against Borrower, General Partner or any other Person or any
collateral; (4) any right or claim of right to cause a marshalling of the
assets of Borrower or General Partner; and (5) all rights of subrogation
or contribution, whether arising by contract or operation of law (including,
without limitation, any such right arising under the Bankruptcy Code) or
otherwise by reason of payment by Borrower or General Partner, either jointly
or severally, pursuant to this Agreement or any other Loan Document.

SECTION 12.15.   Jurisdiction;
Immunities.   Borrower, General Partner, Administrative Agent and each
Bank hereby irrevocably submit to the jurisdiction of any New York State or
United States Federal court sitting in New York City over any action or
proceeding arising out of or relating to this Agreement, the Notes or any other
Loan Document. Borrower,

 64

 

General Partner,
Administrative Agent, and each Bank irrevocably agree that all claims in
respect of such action or proceeding may be heard and determined in such New
York State or United States Federal court. Borrower, General Partner,
Administrative Agent, and each Bank irrevocably consent to the service of any
and all process in any such action or proceeding by the mailing of copies of
such process to Borrower, General Partner, Administrative Agent or each Bank,
as the case may be, at the addresses specified herein. Borrower, General
Partner, Administrative Agent and each Bank agree 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. Borrower,
General Partner, Administrative Agent and each Bank further waive any objection
to venue in the State of New York and any objection to an action or proceeding
in the State of New York on the basis of forum non conveniens. Borrower,
General Partner, Administrative Agent and each Bank agree that any action or
proceeding brought against Borrower, General Partner, Administrative Agent or
any Bank, as the case may be, shall be brought only in a New York State court
sitting in New York City or a United States Federal court sitting in New York
City, to the extent permitted or not expressly prohibited by applicable law.

Nothing in this Section shall
affect the right of Borrower, General Partner, Administrative Agent or any Bank
to serve legal process in any other manner permitted by law.

To the extent that
Borrower, General Partner, Administrative Agent or any Bank have or hereafter
may acquire any immunity from jurisdiction of any court or from any legal
process (whether from service or notice, attachment prior to judgment,
attachment in aid of execution, execution or otherwise) with respect to itself
or its property, Borrower, General Partner, Administrative Agent and each Bank
hereby irrevocably waive such immunity in respect of its obligations under this
Agreement, the Notes and any other Loan Document.

BORROWER, GENERAL
PARTNER, ADMINISTRATIVE AGENT AND EACH BANK WAIVE ANY RIGHT EACH SUCH PARTY MAY HAVE
TO JURY TRIAL IN CONNECTION WITH ANY SUIT, ACTION OR PROCEEDING BROUGHT WITH
RESPECT TO THIS AGREEMENT, THE NOTES OR THE LOAN. IN ADDITION, BORROWER AND
GENERAL PARTNER HEREBY WAIVES, IN CONNECTION WITH ANY SUIT, ACTION OR
PROCEEDING BROUGHT BY ADMINISTRATIVE AGENT OR THE BANKS WITH RESPECT TO THE
NOTES, ANY RIGHT BORROWER OR GENERAL PARTNER, MAY HAVE (1) TO THE
EXTENT PERMITTED OR NOT EXPRESSLY PROHIBITED BY APPLICABLE LAW, TO INTERPOSE
ANY COUNTERCLAIM THEREIN (OTHER THAN A COUNTERCLAIM THAT IF NOT BROUGHT IN THE
SUIT, ACTION OR PROCEEDING BROUGHT BY ADMINISTRATIVE AGENT OR THE BANKS COULD
NOT BE BROUGHT IN A SEPARATE SUIT, ACTION OR PROCEEDING OR WOULD BE SUBJECT TO
DISMISSAL OR SIMILAR DISPOSITION FOR FAILURE TO HAVE BEEN ASSERTED IN SUCH
SUIT, ACTION OR PROCEEDING BROUGHT BY ADMINISTRATIVE AGENT OR THE BANKS) OR (2) TO
THE EXTENT PERMITTED OR NOT EXPRESSLY PROHIBITED BY APPLICABLE LAW, TO HAVE THE
SAME CONSOLIDATED WITH ANY OTHER OR SEPARATE SUIT, ACTION OR PROCEEDING. NOTHING
HEREIN CONTAINED SHALL PREVENT OR PROHIBIT BORROWER OR GENERAL PARTNER FROM
INSTITUTING OR MAINTAINING A SEPARATE ACTION 

 

 65
 

 

AGAINST ADMINISTRATIVE
AGENT OR THE BANKS WITH RESPECT TO ANY ASSERTED CLAIM.

To the extent not
prohibited by applicable law, neither the Borrower nor the General Partner
shall assert, and each of Borrower and the General Partner hereby waives, any
claim against any Bank or any Agent, on any theory of liability, for special,
indirect, consequential or punitive damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of, this Agreement,
any other Loan Document or any agreement or instrument contemplated hereby or
thereby, any Loan or other extension of credit hereunder or the use of the
proceeds thereof.

SECTION 12.16.   Designated
Lender.   Any Bank (other than an Affected Bank or a Bank which is such
solely because it is a Designated Lender) (each, a “Designating Lender”) may at
any time designate one (1) Designated Lender to fund Bid Rate Loans on
behalf of such Designating Lender subject to the terms of this Section and
the provisions in Section 12.05 shall not apply to such designation. No
Bank may designate more than one (1) Designated Lender. The parties to
each such designation shall execute and deliver to Administrative Agent for its
acceptance a Designation Agreement. Upon such receipt of an appropriately
completed Designation Agreement executed by a Designating Lender and a designee
representing that it is a Designated Lender, Administrative Agent will accept
such Designation Agreement and give prompt notice thereof to Borrower,
whereupon, (i) from and after the “Effective Date” specified in the
Designation Agreement, the Designated Lender shall become a party to this
Agreement with a right to make Bid Rate Loans on behalf of its Designating
Lender pursuant to Section 2.02 after Borrower has accepted the Bid Rate
Quote of the Designating Lender and (ii) the Designated Lender shall not
be required to make payments with respect to any obligations in this Agreement
except to the extent of excess cash flow of such Designated Lender which is not
otherwise required to repay obligations of such Designated Lender which are
then due and payable; provided, however, that regardless of such
designation and assumption by the Designated Lender, the Designating Lender
shall be and remain obligated to Borrower, Administrative Agent and the Banks
for each and every of the obligations of the Designating Lender and its related
Designated Lender with respect to this Agreement, including, without
limitation, any indemnification obligations under Section 10.05. Each
Designating Lender shall serve as the administrative agent of its Designated
Lender and shall on behalf of, and to the exclusion of, the Designated Lender (i) receive
any and all payments made for the benefit of the Designated Lender and (ii) give
and receive all communications and notices and take all actions hereunder,
including, without limitation, votes, approvals, waivers and consents under or
relating to this Agreement and the other Loan Documents. Any such notice,
communication, vote, approval, waiver or consent shall be signed by the
Designating Lender as administrative agent for the Designated Lender and shall
not be signed by the Designated Lender on its own behalf, but shall be binding
on the Designated Lender to the same extent as if actually signed by the
Designated Lender. Borrower, Administrative Agent and the Banks may rely
thereon without any requirement that the Designated Lender sign or acknowledge
the same. No Designated Lender may assign or transfer all or any portion of its
interest hereunder or under any other Loan Document, other than assignments to
the Designating Lender which originally designated such Designated Lender.

 

 66
 

 

SECTION 12.17.   No
Bankruptcy Proceedings.   Each of Borrower, the Banks and
Administrative Agent hereby agrees that it will not institute against any
Designated Lender or join any other Person in instituting against any
Designated Lender any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceeding under any federal or state bankruptcy or similar law,
for 366 days after the payment in full of the latest maturing commercial paper
note issued by such Designated Lender.

SECTION 12.18.   Tax
Shelter Regulations.   Neither Borrower, General Partner nor any
subsidiary of any of the foregoing intends to treat the Loan or the
transactions contemplated by this Agreement and the other Loan Documents as
being a “reportable transaction” (within the meaning of Treasury Regulation Section 1.6011-4).
If Borrower or any other such Person determines to take any action inconsistent
with such intention, Borrower shall promptly notify Administrative Agent
thereof. If Borrower so notifies Administrative Agent, Borrower acknowledges
that Administrative Agent and the Banks may treat the Loan as part of a
transaction that is subject to Treasury Regulation Section 301.6112-1,
and Administrative Agent and the Banks will maintain the lists and other
records, including the identity of the applicable party to the Loan as required
by such Treasury Regulation.

(b)   Notwithstanding
anything provided in this Agreement to the contrary, the parties to this
Agreement (and each employee, representative, or other agent of the parties)
may disclose to any and all persons, without limitation of any kind, the tax
treatment and any facts that may be relevant to the tax structure of the
transaction, provided, however, that no party to this Agreement (and no
employee, representative, or other agent thereof) shall disclose any other
information that is not relevant to understanding the tax treatment and tax
structure of the transaction (including the identity of any party to this
Agreement and any information that could lead another to determine the identity
of any party to this Agreement), or any other information to the extent that
such disclosure could result in a violation of any federal or state securities
law.

SECTION 12.19.   USA
Patriot Act.   Each Bank hereby notifies the Borrower and the General
Partner 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 the
Borrower and the General Partner, which information includes the name and
address of the Borrower and the General Partner and other information that will
allow such Bank to identify the Borrower and the General Partner in accordance
with the Act.

[REMAINDER OF PAGE
INTENTIONALLY BLANK]

 

 67
 

 

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

	
   

  	
  VORNADO REALTY L.P.,

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Vornado Realty Trust,

  
	
   

  	
   

  	
  a Maryland real estate investment trust,

  
	
   

  	
   

  	
  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ ALAN RICE

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Alan Rice

  
	
   

  	
   

  	
   

  	
  Title:   Corporation Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  VORNADO REALTY TRUST,

  
	
   

  	
   

  	
  a Maryland real estate investment trust,

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ALAN RICE

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Alan Rice

  
	
   

  	
   

  	
  Title:   Corporation Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address for Notices:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  210 Route 4 East,

  
	
   

  	
   

  	
  Paramus, New Jersey 07652-0910

  
	
   

  	
   

  	
  Attention:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
  Telephone:

  	
  (201) 587-1000

  
	
   

  	
   

  	
  Telecopy:

  	
  (201) 587-0600

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with copies to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Vornado Realty Trust

  
	
   

  	
   

  	
  888 Seventh Avenue

  
	
   

  	
   

  	
  New York, New York 10019

  
	
   

  	
   

  	
  Attention:

  	
  Executive Vice President—

  
	
   

  	
   

  	
   

  	
  Capital Markets and Senior

  
	
   

  	
   

  	
   

  	
  Vice President—Corporation Counsel

  
	
   

  	
   

  	
  Telephone:

  	
  (212) 894-7000

  
	
   

  	
   

  	
  Telecopy:

  	
  (212) 894-7073

  
									

 

 68

 

	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  
	
   

  	
  as Administrative Agent and a Bank

  
	
   

  	
   

  	
   

  
	
   

  	
  By :

  	
  /s/ Marc E. Costantino

  
	
   

  	
   

  	
  Name: Marc E. Costantino

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  Commitment: $60,000,000

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMorgan Chase Bank, N.A.

  
	
   

  	
  270 Park Avenue, 4th Floor

  
	
   

  	
  New York, New York 10017

  
	
   

  	
  Attn:

  	
  Marc Costantino

  
	
   

  	
  Telephone:

  	
  (212) 622-8167

  
	
   

  	
  Telecopy:

  	
  (646) 534-0574

  
	
   

  	
   

  	
   

  
	
   

  	
  and

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMorgan Chase Bank, N.A.,

  
	
   

  	
  1111 Fannin

  
	
   

  	
  8th Floor

  
	
   

  	
  Houston, Texas 77002

  
	
   

  	
  Attn:

  	
  Loan and Agency Services

  
	
   

  	
  Telephone:

  	
  (713) 750-2736

  
	
   

  	
  Telecopy:

  	
  (713) 750-2732

  
					

 

 

SCHEDULE 1

	
  Bank

  	
   

  	
  Loan

  Commitment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  JPMorgan Chase Bank,
  N.A.

  	
   

  	
  $

  	
  60,000,000

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  $

  	
  60,000,000

  	
   

  
	
  Deutsche Bank Trust
  Company Americas

  	
   

  	
  50,000,000

  	
   

  
	
  UBS AG, Cayman Islands
  Branch

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
  LaSalle Bank National
  Association

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
  Citicorp North
  America, Inc.

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
  The Bank of New York

  	
   

  	
  $

  	
  45,000,000

  	
   

  
	
  Eurohypo AG, New York
  Branch

  	
   

  	
  $

  	
  45,000,000

  	
   

  
	
  Wachovia Bank, National
  Association

  	
   

  	
  $

  	
  45,000,000

  	
   

  
	
  Bayerische Landesbank,
  Cayman Islands Branch

  	
   

  	
  $

  	
  45,000,000

  	
   

  
	
  Sumitomo Mitsui Banking
  Corporation

  	
   

  	
  $

  	
  45,000,000

  	
   

  
	
  The Royal Bank of
  Scotland

  	
   

  	
  $

  	
  35,000,000

  	
   

  
	
  Merrill Lynch Bank USA

  	
   

  	
  $

  	
  35,000,000

  	
   

  
	
  Credit Suisse

  	
   

  	
  $

  	
  35,000,000

  	
   

  
	
  Hypo Real Estate
  Capital Corporation

  	
   

  	
  $

  	
  35,000,000

  	
   

  
	
  PNC Bank, National
  Association

  	
   

  	
  $

  	
  35,000,000

  	
   

  
	
  Lehman Brothers Bank,
  FSB

  	
   

  	
  $

  	
  35,000,000

  	
   

  
	
  Morgan Stanley Bank

  	
   

  	
  $

  	
  35,000,000

  	
   

  
	
  Bear Stearns Corporate
  Lending Inc.

  	
   

  	
  $

  	
  25,000,000

  	
   

  
	
  The Bank of
  Tokyo-Mitsubishi UFJ, Ltd.

  	
   

  	
  $

  	
  25,000,000

  	
   

  
	
  Goldman Sachs Credit
  Partners L.P.

  	
   

  	
  $

  	
  25,000,000

  	
   

  
	
  Calyon

  	
   

  	
  $

  	
  20,000,000

  	
   

  
	
  HVB Bank Ireland

  	
   

  	
  $

  	
  20,000,000

  	
   

  
	
  People’s Bank

  	
   

  	
  $

  	
  20,000,000

  	
   

  
	
  Chang Hwa Commercial
  Bank, Ltd., New York Branch

  	
   

  	
  $

  	
  15,000,000

  	
   

  
	
  Chevy Chase Bank

  	
   

  	
  $

  	
  15,000,000

  	
   

  
	
  Bank Hapoalim B.M.

  	
   

  	
  $

  	
  15,000,000

  	
   

  
	
  Landesbank
  Hessen-Thueringen

  	
   

  	
  $

  	
  15,000,000

  	
   

  
	
  First Horizon Bank

  	
   

  	
  $

  	
  15,000,000

  	
   

  
	
  Total

  	
   

  	
  $

  	
  1,000,000,000.00Exhibit 10.1

 

 

 

 

 

FIRST AMENDMENT

TO

PURCHASE AND SALE AGREEMENT

Among

IMPERIAL PETROLEUM INC.

as Seller,

and

WHITTIER ENERGY COMPANY AND
PREMIER NATURAL RESOURCES, LLC

as Buyer

Dated June 26, 2006

 

 

 

 

 

 

FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT

This FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT (this
“First Amendment”) is entered into as of June 26, 2006 by Imperial
Petroleum, Inc., a Nevada corporation (Seller) and Whittier Energy
Company, a Nevada corporation and Premier Natural Resources, LLC, a Delaware
limited liability company (collectively, Buyer).

Recitals

A.            Seller
and Buyer are parties to that certain Purchase and Sale Agreement dated May 1,
2006 ( the “PSA”) pursuant to which the Seller agreed to sell certain
properties to Buyer. Capitalized terms used herein and not otherwise defined
shall have the meanings given such terms in the PSA.

B.            The
parties desire to amend the PSA and stipulate as to certain facts under the
PSA.

NOW, THEREFORE, for and in
consideration of the covenants contained herein and in the PSA, the parties
agree as follows:

Article 1.                Amendments
to PSA.

1.1           Postpone
Closing. Section 6(c)(ii) is hereby amended and restated as
follows:

(ii)           Postpone Closing. Whether or not Seller has then begun to, or
ever begins to, cure one or more Asserted Defects (and whether or not Seller
has elected option (iii) below with respect to one or more Asserted
Defects), Seller may postpone the Closing by designating a new Closing Date not
later than July 31, 2006, so that it may attempt to cure one or more
Asserted Defects. Notwithstanding any such election to postpone Closing, Seller
shall still have no obligation to cure Asserted Defects.

1.2           Actions
At Closing. The first paragraph of Section 10(a) is hereby
amended and restated as follows:

10.           Closing.

(a)           Actions At Closing. The closing (herein
called the “Closing”) of the transaction contemplated hereby shall take place
in the offices of Vinson & Elkins L.L.P. located at First City Tower,
1001 Fannin Street, Suite 2300, Houston, Texas 77002 at 10:00 a.m.
local time on July 31, 2006 (“Closing Date”). The term Closing Date shall
include such other date and time (i) as Buyer

 

and Seller may mutually agree upon or (ii) to
which the Closing may be postponed pursuant to Sections 6(c)(ii) or 8(a) above.
At the Closing:

Article 2.                Stipulations. Buyer and
Seller agree and stipulate to the following:

2.1           Defect
Claim Date. The Defect Claim Date provided under Section 6(a) (i) of
the PSA is no later than July 21, 2006.

2.2           Other
Time Periods. All time periods in the PSA which relate to a number of days
before or after the Closing Date shall be measured against the Closing Date of July 31,
2006 agreed to in this First Amendment.

2.3           Certain
Asserted Defects. Buyer has given Seller notice of certain Asserted Defects
affecting the properties in Louisiana shown on Exhibit A and Schedule I of
the PSA. Accordingly, Buyer and Seller agree that the Properties located in
Louisiana shown on Exhibit A and Schedule I of the PSA are hereby excluded
from the transaction covered by the PSA and the Base Purchase Price will be
reduced by the amount of $654,200.00 set forth on Schedule I for the Properties
designated as “North Louisiana”.

Article 3.                Miscellaneous.

3.1           PSA
Continues in Effect. Except as modified by this First Amendment, the PSA
shall continue in effect as originally written.

3.2           Choice
of Law. Without regard to principles of conflicts of law, this First
Amendment shall be construed and enforced in accordance with and governed by
the laws of the State of Texas applicable to contracts made and to be performed
entirely within such state and the laws of the United States of America.

3.3           Counterparts.
This First Amendment may be executed by one or more of the parties hereto in
any number of separate counterparts, and all of such counterparts taken
together shall be deemed to constitute one and the same instrument.

 2
 

 

IN WITNESS
WHEREOF, this First Amendment is executed by the parties hereto as of the date
set forth above.

	
  IMPERIAL PETROLEUM, INC.

  
	
   

  
	
   

  
	
  By:

  	
  Jeffrey T. Wilson

  	
   

  
	
   

  	
  Jeffrey T. Wilson,

  	
   

  
	
   

  	
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WHITTIER ENERGY COMPANY

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Daniel H. Silverman

  	
   

  
	
   

  	
  Daniel H. Silverman, Vice President

  	
   

  
	
   

  	
  and Chief Operating Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PREMIER NATURAL RESOURCES, LLC

  
	
   

  
	
   

  
	
  By:

  	
  J. Chris Jacobsen

  	
   

  
	
   

  	
  J. Chris Jacobsen, President and Manager

  	
   

  

 

 3

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