Document:

Exhibit
10.3

 

 

 

CREDIT AGREEMENT

dated as of

March 22, 2007

among

CAPITAL TRUST, INC.

The Lenders Party Hereto

and

WESTLB AG, NEW YORK BRANCH,

as Administrative Agent

 

WESTLB AG, NEW YORK BRANCH,

as Sole Bookrunner, Sole Lead Arranger and Sole
Syndication Agent

 

 

TABLE OF CONTENTS

	
  

  	
   

  	
  Page

  
	
  ARTICLE I

  
	
   

  	
   

  	
   

  
	
  Definitions

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01. Defined Terms

  	
   

  	
  1

  
	
  SECTION 1.02. Classification of Loans and Borrowings

  	
   

  	
  13

  
	
  SECTION 1.03. Terms Generally

  	
   

  	
  13

  
	
  SECTION 1.04. Accounting Terms; GAAP

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
   

  	
   

  	
   

  
	
  The Credits

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01. Commitments

  	
   

  	
  14

  
	
  SECTION 2.02. Loans and Borrowings

  	
   

  	
  14

  
	
  SECTION 2.03. Requests for Borrowings

  	
   

  	
  14

  
	
  SECTION 2.04. Funding of Borrowings

  	
   

  	
  15

  
	
  SECTION 2.05. Interest Elections

  	
   

  	
  16

  
	
  SECTION 2.06. Termination, Reduction and Increase of
  Commitments

  	
   

  	
  17

  
	
  SECTION 2.07. Repayment of Loans; Evidence of
  Indebtedness

  	
   

  	
  19

  
	
  SECTION 2.08. Prepayment of Loans

  	
   

  	
  20

  
	
  SECTION 2.09. Fees

  	
   

  	
  20

  
	
  SECTION 2.10. Interest

  	
   

  	
  21

  
	
  SECTION 2.11. Alternate Rate of Interest

  	
   

  	
  21

  
	
  SECTION 2.12. Increased Costs

  	
   

  	
  22

  
	
  SECTION 2.13. Break Funding Payments

  	
   

  	
  23

  
	
  SECTION 2.14. Taxes

  	
   

  	
  23

  
	
  SECTION 2.15. Payments Generally; Pro Rata
  Treatment; Sharing of Set-offs

  	
   

  	
  25

  
	
  SECTION 2.16. Mitigation Obligations; Replacement of
  Lenders

  	
   

  	
  26

  
	
  SECTION 2.17. Extension of Maturity Date

  	
   

  	
  27

  
	
  SECTION 2.18. Term-Out Option

  	
   

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  	
   

  
	
  Representations
  and Warranties

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01. Organization; Powers

  	
   

  	
  28

  
	
  SECTION 3.02. Authorization; Enforceability

  	
   

  	
  28

  
	
  SECTION 3.03. Governmental Approvals; No Conflicts

  	
   

  	
  29

  
	
  SECTION 3.04. Financial Condition; No Material
  Adverse Change

  	
   

  	
  29

  
	
  SECTION 3.05. Properties

  	
   

  	
  29

  
	
  SECTION 3.06. Litigation and Environmental Matters

  	
   

  	
  29

  

 

 i
 

 

	
  SECTION 3.07. Compliance with Laws and
  Agreements

  	
   

  	
  30

  
	
  SECTION 3.08. Investment Company Status

  	
   

  	
  30

  
	
  SECTION 3.09. Taxes

  	
   

  	
  30

  
	
  SECTION 3.10. ERISA

  	
   

  	
  30

  
	
  SECTION 3.11. Disclosure

  	
   

  	
  31

  
	
  SECTION 3.12. Solvency

  	
   

  	
  31

  
	
  SECTION 3.13. Subsidiaries

  	
   

  	
  31

  
	
  SECTION 3.14. REIT Qualification

  	
   

  	
  31

  
	
  SECTION 3.15. Use of Proceeds; Margin Regulations

  	
   

  	
  31

  
	
  SECTION 3.16. Insurance

  	
   

  	
  32

  
	
  SECTION 3.17. Labor Matters

  	
   

  	
  32

  
	
  SECTION 3.18. Brokers’ Fees

  	
   

  	
  32

  
	
  SECTION 3.19. Ranking

  	
   

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  	
   

  	
   

  
	
  Conditions

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01. Effective Date

  	
   

  	
  32

  
	
  SECTION 4.02. Each Credit Event

  	
   

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
   

  	
   

  	
   

  
	
  Affirmative
  Covenants

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01. Financial Statements; Ratings Change
  and Other Information

  	
   

  	
  34

  
	
  SECTION 5.02. Notices of Material Events

  	
   

  	
  35

  
	
  SECTION 5.03. Existence; Conduct of Business

  	
   

  	
  35

  
	
  SECTION 5.04. Payment of Obligations

  	
   

  	
  35

  
	
  SECTION 5.05. Maintenance of Properties; Insurance

  	
   

  	
  36

  
	
  SECTION 5.06. Books and Records; Inspection Rights

  	
   

  	
  36

  
	
  SECTION 5.07. Compliance with Laws

  	
   

  	
  36

  
	
  SECTION 5.08. Use of Proceeds

  	
   

  	
  36

  
	
  SECTION 5.09. REIT Status

  	
   

  	
  36

  
	
  SECTION 5.10. NYSE Status

  	
   

  	
  36

  
	
  SECTION 5.11. Ranking

  	
   

  	
  36

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  	
   

  	
   

  
	
  Negative
  Covenants

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01. Indebtedness

  	
   

  	
  37

  
	
  SECTION 6.02. Liens

  	
   

  	
  37

  
	
  SECTION 6.03. Mergers, Consolidations, Sales of
  Assets, etc.

  	
   

  	
  37

  
	
  SECTION 6.04. Restricted Payments

  	
   

  	
  38

  
	
  SECTION 6.05. Transactions with Affiliates

  	
   

  	
  38

  
	
  SECTION 6.06. Restrictive Agreements

  	
   

  	
  38

  

 

 ii
 

 

	
  SECTION 6.07. Organizational Documents

  	
   

  	
  39

  
	
  SECTION 6.08. Financial Covenants

  	
   

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  	
   

  	
   

  
	
  Events of
  Default

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  	
   

  	
   

  
	
  The
  Administrative Agent

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  
	
   

  	
   

  	
   

  
	
  Miscellaneous

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01. Notices

  	
   

  	
  44

  
	
  SECTION 9.02. Waivers; Amendments

  	
   

  	
  44

  
	
  SECTION 9.03. Expenses; Indemnity; Damage Waiver

  	
   

  	
  45

  
	
  SECTION 9.04. Successors and Assigns

  	
   

  	
  46

  
	
  SECTION 9.05. Survival

  	
   

  	
  49

  
	
  SECTION 9.06. Counterparts; Integration; Effectiveness

  	
   

  	
  49

  
	
  SECTION 9.07. Severability

  	
   

  	
  50

  
	
  SECTION 9.08. Right of Setoff

  	
   

  	
  50

  
	
  SECTION 9.09. Governing Law; Jurisdiction; Consent
  to Service of Process

  	
   

  	
  50

  
	
  SECTION 9.10. WAIVER OF JURY TRIAL

  	
   

  	
  51

  
	
  SECTION 9.11. Headings

  	
   

  	
  51

  
	
  SECTION 9.12. Confidentiality

  	
   

  	
  51

  
	
  SECTION 9.13. Interest Rate Limitation

  	
   

  	
  52

  
	
  SECTION 9.14. USA PATRIOT Act

  	
   

  	
  52

  
	
   

  	
   

  	
   

  
	
  SCHEDULES:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 2.01 — Commitments

  	
   

  	
   

  
	
  Schedule 3.06 — Disclosed Matters

  	
   

  	
   

  
	
  Schedule 3.13 — Subsidiaries

  	
   

  	
   

  
	
  Schedule 6.02 — Liens

  	
   

  	
   

  
	
  Schedule 6.06 — Restrictive Agreements

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A — Form of Assignment and Assumption

  	
   

  	
   

  
	
  Exhibit B — Borrowing Request

  	
   

  	
   

  

 

 iii

CREDIT AGREEMENT
dated as of March 22, 2007 (this “Agreement”), among CAPITAL TRUST, INC.,
a Maryland corporation (the “Borrower”), the banks and financial
institutions listed on the signature pages hereto as a Lender (as hereinafter
defined), and WESTLB AG, NEW YORK BRANCH, as Administrative Agent (as
hereinafter defined) for the Lenders.

The parties hereto agree as follows:

ARTICLE I

Definitions

SECTION 1.01.  Defined Terms.  As used in this Agreement, the following
terms have the meanings specified below:

“ABR”, when used in reference to any Loan or
Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing,
are bearing interest at a rate determined by reference to the Alternate Base
Rate.

“Adjusted Earnings” has the meaning assigned to
such term in Section 6.04.

“Administrative Agent” means WestLB AG, New
York Branch, in its capacity as administrative agent for the Lenders hereunder.

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

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

“Alternate Base Rate” means, for any day, a
rate per annum equal to the greatest of (a) the Prime Rate in effect on such
day and (b) the Federal Funds Effective Rate in effect on such day
plus 0.50%.  Any change in the
Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.

“Applicable Margin” means:

(a) with respect to any ABR Loan, (i) for any day
prior to the Term-Out Option becoming effective, 0.75% and (ii) for any day
from and after the Term-Out Option becoming effective, 1.00%; and

(b) with respect to any Eurodollar Loan, (i) for any
day prior to the Term-Out Option becoming effective, 1.50% and (ii) for any day
from and after the Term-Out Option becoming effective, 1.75%.

“Applicable Percentage” means, with respect to
any Lender, the percentage of the total Commitments represented by such Lender’s
Commitment.  If the Commitments have
terminated or expired, the Applicable Percentages shall be determined based
upon the Commitments most recently in effect, giving effect to any assignments.

 “Approved
Fund” has the meaning assigned to such term in Section 9.04(b)(ii).

“Assignment and Assumption” means an assignment
and assumption entered into by a Lender and an assignee (with the consent of
any party whose consent is required by Section 9.04), and accepted
by the Administrative Agent, in the form of Exhibit A or any other
form approved by the Administrative Agent.

“Assuming Lender” has the meaning assigned to
such term in Section 2.06(d).

“Availability Period” means the period from and
including the Effective Date to but excluding the earlier of the Stated Maturity
Date and the date of termination of the Commitments.

“Board” means the Board of Governors of the
Federal Reserve System of the United States of America.

“Borrower” has the meaning assigned to such
term in the preamble.

“Borrowing” means Revolving Loans of the same
Type, made, converted or continued on the same date and, in the case of
Eurodollar Loans, as to which a single Interest Period is in effect.

“Borrowing Request” means a request by the
Borrower for a Revolving Loan in accordance with Section 2.03.

“Business Day” means any day that is not a Saturday,
Sunday or other day on which commercial banks in New York City are authorized
or required by law to remain closed; provided that, when used in
connection with a Eurodollar Loan, the term “Business Day” shall also
exclude any day on which banks are not open for dealings in dollar deposits in
the London interbank market.

“Capital Lease Obligations” of any Person means
the obligations of such Person to pay rent or other amounts under any lease of
(or other arrangement conveying the right to use) real or personal property, or
a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof determined
in accordance with GAAP.

“Change in Control” means (a) the acquisition
of ownership, directly or indirectly, beneficially or of record, by any Person
or group (within the meaning of the Securities Exchange Act of 1934 and the
rules of the Securities and Exchange Commission thereunder as in effect on the
date hereof), of Equity Interests representing more than 50% of the aggregate
ordinary voting power represented by the issued and outstanding Equity
Interests of the 

 2
 

Borrower; (b) occupation
of a majority of the seats (other than vacant seats) on the board of directors of
the Borrower by Persons who were neither (i) nominated by the board of directors
of the Borrower nor (ii) appointed by directors so nominated; or (c) the
acquisition of direct or indirect Control of the Borrower by any Person or
group.

“Change in Law” means (a) the adoption of any
law, rule or regulation after the date of this Agreement, (b) any change in any
law, rule or regulation or in the interpretation or application thereof by any
Governmental Authority after the date of this Agreement or (c) compliance by
any Lender (or, for purposes of Section 2.12(b), by any lending office
of such Lender or by such Lender’s holding company, if any) with any request,
guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.

“Charges” has the meaning assigned to such term
in Section 9.13.

“Code” means the Internal Revenue Code of 1986,
as amended from time to time.

“Commitment” means, with respect to each
Lender, the commitment of such Lender to make Revolving Loans hereunder,
expressed as an amount representing the maximum aggregate amount of such Lender’s
Revolving Credit Exposure hereunder, as such commitment may be (a) reduced or
increased from time to time pursuant to Section 2.06 and (b) reduced or
increased from time to time pursuant to assignments by or to such Lender
pursuant to Section 9.04.  The
initial amount of each Lender’s Commitment is set forth on Schedule 2.01,
or in the Assignment and Assumption pursuant to which such Lender shall have
assumed its Commitment, as applicable. 
The initial aggregate amount of the Lenders’ Commitments is $50,000,000.

“Commitment Increase” has the meaning assigned
to such term in Section 2.06(d).

“Commitment Increase Date” has the meaning
assigned to such term in Section 2.06(d).

“Consenting Lenders” has the meaning assigned
to such term in Section 2.17(b).

“Consolidated Tangible Net Worth” means, as of
any date of determination, the tangible net worth of the Borrower and its
Subsidiaries (determined on a consolidated basis in accordance with GAAP).

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

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

 3
 

“Disclosed Matters” means the actions, suits
and proceedings and the environmental matters disclosed in Schedule 3.06.

“dollars” or “$” refers to lawful money of
the United States of America.

“EBITDA” means, for any period of
determination, (a) the sum of, without duplication, (i) Net Income for such
period, (ii) depreciation, depletion and amortization expense and other
non-cash items deducted in the calculation of Net Income for such period, (iii)
Interest Expense deducted in the calculation of Net Income for such period,
(iv) dividends and distributions from the unconsolidated Subsidiaries of the
Borrower (excluding returns of equity) for such period, and (v) income tax
expense for such period less, without duplication,  (b) (i) income from any unconsolidated
Affiliates of the Borrower and its unconsolidated Subsidiaries for such period,
(ii) gains and losses from discontinued operations and extraordinary gains and
losses for such period, and (iii) other unusual nonrecurring items.

“Effective Date” means the date on which the
conditions specified in Section 4.01 are satisfied (or waived in
accordance with Section 9.02).

“Eligible Assignee” has the meaning assigned to
such term in Section 9.04(b)(ii).

“Environmental Laws” means all laws, rules,
regulations, codes, ordinances, orders, decrees, judgments, injunctions,
notices or binding agreements issued, promulgated or entered into by any
Governmental Authority, relating in any way to the environment, preservation or
reclamation of natural resources, the management, release or threatened release
of any Hazardous Material or to health and safety matters.

“Environmental Liability” means any liability,
contingent or otherwise (including any liability for damages, costs of
environmental remediation, fines, penalties or indemnities), of the Borrower or
any Subsidiary directly or indirectly resulting from or based upon
(a) violation of any Environmental Law, (b) the generation, use,
handling, transportation, storage, treatment or disposal of any Hazardous
Materials, (c) exposure to any Hazardous Materials, (d) the release
or threatened release of any Hazardous Materials into the environment or (e)
any contract, agreement or other consensual arrangement pursuant to which
liability is assumed or imposed with respect to any of the foregoing.

“Equity Interests” means shares of capital
stock, partnership interests, membership interests in a limited liability
company, beneficial interests in a trust or other equity ownership interests in
a Person, and any warrants, options or other rights entitling the holder
thereof to purchase or acquire any such equity interest.

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

“ERISA Affiliate” means any trade or business
(whether or not incorporated) that, together with the Borrower, is treated as a
single employer under Section 414(b) or (c) of the Code or, solely for
purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a
single employer under Section 414 of the Code.

 4
 

“ERISA Event” means (a) any “reportable
event”, as defined in Section 4043 of ERISA or the regulations issued
thereunder with respect to a Plan (other than an event for which the 30-day
notice period is waived); (b) the existence with respect to any Plan of an
“accumulated funding deficiency” (as defined in Section 412 of the Code or
Section 302 of ERISA), whether or not waived; (c) the filing pursuant
to Section 412(d) of the Code or Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of
any liability under Title IV of ERISA with respect to the termination of
any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the
PBGC or a plan administrator of any notice relating to an intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f)
the incurrence by the Borrower or any of its ERISA Affiliates of any liability
with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA
Affiliate of any notice, or the receipt by any Multiemployer Plan from the
Borrower or any ERISA Affiliate of any notice, concerning the imposition of
Withdrawal Liability or a determination that a Multiemployer Plan is, or is
expected to be, insolvent or in reorganization, within the meaning of Title IV
of ERISA.

“Eurodollar”, when used in reference to any
Loan or Borrowing, refers to whether such Loan, or the Loans comprising such
Borrowing, are bearing interest at a rate determined by reference to the LIBO
Rate.

“Events of Default” has the meaning assigned to
such term in Article VII.

“Excluded Taxes” means, with respect to the
Administrative Agent, any Lender or any other recipient of any payment to be
made by or on account of any obligation of the Borrower hereunder, (a) income
or franchise taxes imposed on (or measured by) its net income  by the United States of America, or by the
jurisdiction under the laws of which such recipient is organized or in which
its principal office is located or, in the case of any Lender, in which its
applicable lending office is located, (b) any branch profits taxes imposed by
the United States of America or any similar tax imposed by any other
jurisdiction in which the Borrower is located and (c) in the case of a Foreign
Lender (other than an assignee pursuant to a request by the Borrower under Section
2.16(b)), any withholding tax that is imposed on amounts payable to such
Foreign Lender at the time such Foreign Lender becomes a party to this
Agreement (or designates a new lending office) or is attributable to such Foreign
Lender’s failure to comply with Section 2.14(e), except to the extent
that such Foreign Lender (or its assignor, if any) was entitled, at the time of
designation of a new lending office (or assignment), to receive additional
amounts from the Borrower with respect to such withholding tax pursuant to Section
2.14(a).

“Extension Effective Date” has the meaning
assigned to such term in Section 2.17(b).

“Federal Funds Effective Rate” means, for any
day, the weighted average (rounded upwards, if necessary, to the next 1/100 of
1%) of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers, as published on the
next succeeding Business Day by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day that is a Business Day, the average
(rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for
such day for such transactions received 

 5
 

by the Administrative
Agent from three Federal funds brokers of recognized standing selected by it.

“Financial Officer” means the chief executive
officer, chief operating officer, chief financial officer, principal accounting
officer, treasurer or controller of the Borrower.

“Fixed Charges” means, for any period of determination,
the sum of (i) the Interest Expense for such period and (ii) the aggregate
amount of the dividends paid by the Borrower during such period with respect to
the preferred stock of the Borrower.

“Foreign Lender” means any Lender that is
organized under the laws of a jurisdiction other than that in which the
Borrower is located.  For purposes of
this definition, the United States of America, each State thereof and the
District of Columbia shall be deemed to constitute a single jurisdiction.

“GAAP” means generally accepted accounting
principles in the United States of America.

“Governmental Authority” means the government
of the United States of America, any other nation or any political subdivision
thereof, whether state or local, and any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government.

“Guarantee” of or by any Person (the “guarantor”)
means any obligation, contingent or otherwise, of the guarantor guaranteeing or
having the economic effect of guaranteeing any Indebtedness or other obligation
of any other Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of the guarantor, direct
or indirect, (a) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or other obligation or to purchase
(or to advance or supply funds for the purchase of) any security for the
payment thereof, (b) to purchase or lease property, securities or services
for the purpose of assuring the owner of such Indebtedness or other obligation
of the payment thereof, (c) to maintain working capital, equity capital or
any other financial statement condition or liquidity of the primary obligor so
as to enable the primary obligor to pay such Indebtedness or other obligation
or (d) as an account party in respect of any letter of credit or letter of
guaranty issued to support such Indebtedness or obligation; provided,
that the term Guarantee shall not include endorsements for collection or
deposit in the ordinary course of business. 
The amount of any Guarantee shall be deemed to be an amount equal to the
stated or determinable amount (based on the maximum reasonably anticipated net
liability in respect thereof as determined by the Borrower in good faith) of
the primary obligation or portion thereof in respect of which such Guarantee is
made or, if not stated or determinable, the maximum reasonably anticipated net
liability in respect thereof (assuming such Person is required to perform
thereunder) as determined by the Borrower in good faith.

“Hazardous Materials”  means all explosive or radioactive substances
or wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing
materials, polychlorinated biphenyls, radon 

 6
 

gas, infectious or
medical wastes and all other substances or wastes of any nature regulated
pursuant to any Environmental Law.

“Increasing Lender” has the meaning assigned to
such term in Section 2.06(d).

“Indebtedness” of any Person means, without
duplication, (a) all obligations of such Person for borrowed money or with
respect to deposits or advances of any kind, (b) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments,
(c) all obligations of such Person upon which interest charges are
customarily paid, (d) all obligations of such Person under conditional
sale or other title retention agreements relating to property acquired by such
Person, (e) all obligations of such Person in respect of the deferred
purchase price of property or services (excluding current accounts payable
incurred in the ordinary course of business), (f) all Indebtedness of
others secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned or
acquired by such Person, whether or not the Indebtedness secured thereby has
been assumed, (g) all Guarantees by such Person of Indebtedness of others,
(h) all Capital Lease Obligations of such Person, (i) all
obligations, contingent or otherwise, of such Person as an account party in
respect of letters of credit and letters of guaranty and (j) all obligations,
contingent or otherwise, of such Person in respect of bankers’
acceptances.  The Indebtedness of any
Person shall include the Indebtedness of any other entity (including any
partnership in which such Person is a general partner) to the extent such
Person is liable therefor as a result of such Person’s ownership interest in or
other relationship with such entity, except to the extent the terms of such
Indebtedness provide that such Person is not liable therefor.

“Indemnified Taxes” means Taxes other than
Excluded Taxes.

“Indemnitee” has the meaning assigned to such
term in Section 9.03(b).

“Information” has the meaning assigned to such
term in Section 9.12.

“Interest Election Request” means a request by
the Borrower to convert or continue a Revolving Loan in accordance with Section 2.05.

“Interest Expense” means, for any period of
determination, interest expense for the Borrower and its Subsidiaries for such
period, determined on a consolidated basis in accordance with GAAP.

“Interest Payment Date” means (a) with
respect to any ABR Loan, the first Business Day of each month for interest due
through the last day of the preceding month and (b) with respect to any
Eurodollar Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part, or if such day is not a Business Day,
the next succeeding Business Day.

“Interest Period” means with respect to any
Eurodollar Borrowing, the period commencing on the date of such Borrowing and
ending on the numerically corresponding day in the calendar month that is one,
two or three months thereafter, as the Borrower may elect; provided,
that (i) the Interest Period may be seven (7) or fourteen (14) days, or, with
the consent of the Administrative Agent and the Required Lenders, otherwise be
shorter than one month, in 

 7
 

order to consolidate
Eurodollar Borrowings, (ii) if any Interest Period would end on a day other
than a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless such next succeeding Business Day would fall in
the next calendar month, in which case such Interest Period shall end on the
next preceding Business Day and (iii) any Interest Period pertaining to a
Eurodollar Borrowing that commences on the last Business Day of a calendar
month (or on a day for which there is no numerically corresponding day in the
last calendar month of such Interest Period) shall end on the last Business Day
of the last calendar month of such Interest Period.  For purposes hereof, the date of a Borrowing
initially shall be the date on which such Borrowing is made and, in the case of
a Revolving Loan, thereafter shall be the effective date of the most recent
conversion or continuation of such Borrowing.

“Lenders” means the Persons listed on Schedule 2.01
and any other Person that shall have become a party hereto pursuant to an
Assignment and Assumption, other than any such Person that ceases to be a party
hereto pursuant to an Assignment and Assumption.

“LIBO Rate” means, with respect to any
Eurodollar Borrowing for any Interest Period, the rate appearing on Page 3750
of the Dow Jones Market Service (or on any successor or substitute page of such
Service, or any successor to or substitute for such Service, providing rate
quotations comparable to those currently provided on such page of such Service,
as determined by the Administrative Agent from time to time for purposes of
providing quotations of interest rates applicable to dollar deposits in the London
interbank market) at approximately 11:00 a.m., London time, two (2) Business
Days prior to the commencement of such Interest Period, as the rate for dollar
deposits with a maturity comparable to such Interest Period.  In the event that such rate is not available
at such time for any reason, then the “LIBO Rate” with respect to such
Eurodollar Borrowing for such Interest Period shall be determined from such
financial reporting service or other information as shall be mutually
acceptable to the Borrower and the Administrative Agent.

“Lien” means, with respect to any asset,
(a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance,
charge or security interest in, on or of such asset, (b) the interest of a
vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same
economic effect as any of the foregoing) relating to such asset and (c) in
the case of securities, any purchase option, call or similar right of a third
party with respect to such securities.

“Loans” means the loans made by the Lenders to
the Borrower pursuant to this Agreement.

“Mandate Letter” means that certain mandate
letter dated December 7, 2006 between the Borrower and the Administrative
Agent.

“Margin Stock” has the meaning assigned thereto
in Regulation U.

“Material Adverse Effect” means a material
adverse effect on (a) the business, assets, operations or condition,
financial or otherwise, of the Borrower and the Subsidiaries taken as a whole,
(b) the ability of the Borrower to perform any of its material obligations
under this Agreement or (c) the material rights of or benefits available
to the Lenders under this Agreement.

 8
 

“Material Recourse Indebtedness” has the
meaning assigned to such term in Article VII.

“Material Subsidiary” has the meaning assigned
to such term in Article VII.

“Material Subsidiary Indebtedness” has the
meaning assigned to such term in Article VII.

“Maturity Date” means (a) the later of (i) the
Stated Maturity Date and (ii) if the Borrower exercises the Term-Out Option pursuant
to Section 2.18, the Term-Out Maturity Date, or (b) if earlier, the
effective date of any other termination, cancellation or acceleration of all
Commitments under this Agreement.

“Maximum Rate” has the meaning assigned to such
term in Section 9.13.

“Multiemployer Plan” means a multiemployer plan
as defined in Section 4001(a)(3) of ERISA.

“Net Income” means, for any period of
determination, the net income (loss) of the Borrower and its Subsidiaries for
such period, determined on a consolidated basis in accordance with GAAP.

“Net Proceeds” means, as of any date of
determination, the aggregate cash, cash equivalents or other asset proceeds
received by the Borrower in respect of any issuance or sale of Equity Interests
of the Borrower by the Borrower, after deducting reasonable and customary
transaction expenses (including legal fees and underwriters’ commissions and
discounts) incurred in connection therewith.

“Net Worth” means, as of any date of
determination, the sum of the following with respect to the Borrower and its
Subsidiaries on a consolidated basis: (i) book equity, (ii) reserves for loan
losses (determined in accordance with GAAP) and (iii) retained earnings (less
those amounts attributable to unconsolidated Subsidiaries of the Borrower).

“Non-Recourse Indebtedness” of any Person means
(i) any Indebtedness of such Person in respect of which the holder thereof
has agreed that no action, suit, proceeding, enforcement, judgment, order or execution
on the instrument constituting such Indebtedness, or on any collateral
instrument shall be taken, brought or sought against the Person for such
Indebtedness contingently or otherwise for the purpose of obtaining payment or
other satisfaction of principal of, interest on, or any other fee of such
Indebtedness other than out of the real property or assets securing such
Indebtedness, except for liability for fraud, material misrepresentation or
misuse or misapplication of insurance proceeds, condemnation awards, existence
of hazardous wastes, and (ii) Indebtedness of a subsidiary of such Person
that is a special-purpose (bankruptcy remote) entity where such Person has no
recourse with respect to such Indebtedness.

“NYSE” means the New York Stock Exchange, Inc.

 9
 

“Other Taxes” means any and all present or
future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies arising from any payment made hereunder or from the
execution, delivery or enforcement of, or otherwise with respect to, this
Agreement.

“Participant” has the meaning set forth in Section
9.04(c)(i).

“Patriot Act” has the meaning assigned to such
term in Section 9.14.

“PBGC” means the Pension Benefit Guaranty
Corporation referred to and defined in ERISA and any successor entity
performing similar functions.

“Permitted Encumbrances” means:

(a)           Liens
imposed by law for taxes that are not yet due or are being contested in
compliance with Section 5.04;

(b)           carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens
imposed by law, arising in the ordinary course of business and securing
obligations that are not overdue by more than thirty (30) days or are being
contested in compliance with Section 5.04;

(c)           pledges
and deposits made in the ordinary course of business in compliance with workers’
compensation, unemployment insurance and other social security laws or
regulations;

(d)           deposits
to secure the performance of bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations
of a like nature, in each case in the ordinary course of business;

(e)           judgment
liens in respect of judgments that do not constitute an Event of Default under
clause (m) of Article VII; and

(f)            easements,
zoning restrictions, rights-of-way and similar encumbrances on real property
imposed by law or arising in the ordinary course of business that do not secure
any monetary obligations and do not materially detract from the value of the
affected property or interfere with the ordinary conduct of business of the
Borrower or any Subsidiary;

provided that the term “Permitted
Encumbrances” shall not include any Lien securing Indebtedness.

“Person” means any natural person, corporation,
limited liability company, trust, joint venture, association, company,
partnership, Governmental Authority or other entity.

“Plan” 
means any employee pension benefit plan (other than a Multiemployer
Plan) subject to the provisions of Title IV of ERISA or Section 412
of the Code or Section 302 of ERISA, and in respect of which the Borrower
or any ERISA Affiliate is (or, if such plan were 

 10
 

terminated, would under
Section 4069 of ERISA be deemed to be) an “employer” as defined in
Section 3(5) of ERISA.

“Prime Rate” means, on any day, the rate of
interest per annum equal to the rate on such date published in H.15(519) under
the caption “Bank Prime Loan” or, if not published by 3:00 P.M., New York City
time, on such date, the rate on such date published in H.15 Daily Update, or
such other recognized electronic source used for the purpose of displaying such
rate, under the caption “Bank Prime Loan”. 
If such rate is not yet published in H.15(519), H.15 Daily Update or
another recognized electronic source by 3:00 P.M., New York City time, on such
date, then the Prime Rate shall be the rate of interest announced publicly from
time to time by the Administrative Agent or its successor, as its “prime rate”
for such date.

“Recourse Indebtedness” of any Person, means any
Indebtedness of such Person other than Non-Recourse Indebtedness.

“Register” has the meaning set forth in Section 9.04(b)(iv).

“Regulation U” means Regulation U of the Board
of Governors of the Federal Reserve System, from time to time in effect, and
shall include any successor or other regulation relating to reserve
requirements or margin requirements, as the case may be, applicable to member
banks of the Federal Reserve System.

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

“Repurchase Transactions” means any transaction
entered into pursuant to a master repurchase agreement or any other form of
master agreement published by the Bond Market Association or the International
Swaps and Derivatives Association, Inc. or any similar type transaction
approved by the Required Lenders.

“Required Lenders” means, at any time, (i) Lenders
having Revolving Credit Exposures and unused Commitments representing more than
66-2/3% of the sum of the total Revolving Credit Exposures and unused
Commitments at such time or (ii) if the Commitments have been terminated,
Lenders having outstanding Loans representing more than 66-2/3% of the sum of
the total outstanding Loans at such time.

“Restricted Payment” means any dividend or
other distribution (whether in cash, securities or other property) with respect
to any Equity Interests in the Borrower or any Subsidiary, or any payment
(whether in cash, securities or other property), including any sinking fund or
similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such Equity Interests in the
Borrower or any option, warrant or other right to acquire any such Equity
Interests in the Borrower.

“Revolving Credit Exposure” means, with respect
to any Lender at any time, the sum of the outstanding principal amount of such
Lender’s Revolving Loans at such time.

“Revolving Loan” means a Loan made pursuant to Section
2.03.

 11
 

“SEC” means the Securities and Exchange
Commission, or any regulatory body that succeeds to the functions thereof.

 “Stated
Maturity Date” means the later of (a) March 21, 2008 and (b) if the
maturity is extended pursuant to Section 2.17, such extended maturity
date as determined pursuant to such Section.

“Subordinated Indebtedness” means Indebtedness
of the Borrower and/or any of its Subsidiaries that is fully subordinated to
the Loans and all other obligations of the Borrower to the Lenders hereunder and
provides for no payment, prepayment or redemption thereof on any date earlier
than one year and one day later than the later of the Stated Maturity  Date and the Term Loan Maturity Date and
provides that no payment will be made thereunder upon the occurrence and during
the continuanace of an Event of Default hereunder.

“subsidiary” means, with respect to any Person
(the “parent”) at any date, any corporation, limited liability company,
partnership, association or other entity the accounts of which would be
consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP
as of such date, as well as any other corporation, limited liability company,
partnership, association or other entity (a) of which securities or other
ownership interests representing more than 50% of the equity or more than 50%
of the ordinary voting power or, in the case of a partnership, more than 50% of
the general partnership interests are, as of such date, owned, controlled or
held, or (b) that is, as of such date, otherwise Controlled, by the parent
or one or more subsidiaries of the parent or by the parent and one or more
subsidiaries of the parent.

“Subsidiary” means any subsidiary of the
Borrower.

“Taxes” means any and all present or future
taxes, levies, imposts, duties, deductions, charges or withholdings imposed by
any Governmental Authority.

“Term Loan” means the term loan made pursuant
to Section 2.18.

“Term Loan Maturity Date” means the date that
is one year after the then Stated Maturity Date.

“Term-Out Option” has the meaning assigned to
such term in Section 2.18.

“Total Indebtedness” means, as of any date of
determination, the sum of all interest-bearing Indebtedness of the Borrower and
its Subsidiaries, determined on a consolidated basis in accordance with GAAP,
provided that the calculation of Total Indebtedness will exclude (i) amounts of
liabilities resulting from the sale of participation interests classified as
participations sold on the liabilities side of the Borrower’s balance sheet, (ii)
liabilities resulting from consolidation of Indebtedness associated with
securitizations where the Borrower has no recourse obligation for the
Indebtedness and which Indebtedness was not issued by the Borrower or its
Subsidiaries and (iii) liabilities resulting from the consolidation of securitization
vehicles managed by the Borrower or any of its Subsidiaries where the Borrower
has less than a 50% Equity Interest in any such securitization vehicle (such
exclusions in the foregoing clauses (i) through (iii) referred to herein as “Excluded
Liabilities”).

 12
 

“Total Recourse Indebtedness” means, as of any
date of determination, the sum of all Recourse Indebtedness of the Borrower, provided
that the calculation of Total Recourse Indebtedness will exclude Excluded
Liabilities.

“Transactions” means the execution, delivery
and performance by the Borrower of this Agreement, the borrowing of Loans and the
use of the proceeds thereof.

“Type”, when used in reference to any Loan or
Borrowing, refers to whether the rate of interest on such Loan, or on the Loans
comprising such Borrowing, is determined by reference to the LIBO Rate or the
Alternate Base Rate.

“Withdrawal Liability” means liability to a Multiemployer
Plan as a result of a complete or partial withdrawal from such Multiemployer
Plan, as such terms are defined in Part I of Subtitle E of
Title IV of ERISA.

SECTION 1.02.   Classification of Loans and Borrowings.  For purposes of this Agreement, Loans and
Borrowings may be classified and referred to by Type (e.g., a “Eurodollar
Loan” or a “Eurodollar Borrowing”).

SECTION 1.03.  Terms
Generally.  The definitions of terms
herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have
the same meaning and effect as the word “shall”.  Unless the context requires otherwise (a) any
definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other
document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications
set forth herein), (b) any reference herein to any Person shall be construed to
include such Person’s successors and assigns, (c) the words “herein”, “hereof”
and “hereunder”, and words of similar import, shall be construed to refer to
this Agreement in its entirety and not to any particular provision hereof, (d)
all references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement and (e) the words “asset” and “property” shall be construed to
have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and
contract rights.

SECTION 1.04.  Accounting
Terms; GAAP.  Except as otherwise
expressly provided herein, all terms of an accounting or financial nature shall
be construed in accordance with GAAP, as in effect from time to time; provided
that, if the Borrower notifies the Administrative Agent that the Borrower
requests an amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the application thereof on
the operation of such provision (or if the Administrative Agent notifies the
Borrower that the Required Lenders request an amendment to any provision hereof
for such purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then such provision
shall be interpreted on the basis of GAAP as in effect 

 13
 

and applied immediately before such change shall have become effective
until  such notice shall have been
withdrawn or such provision  amended in
accordance herewith.

ARTICLE II

The Credits

SECTION 2.01.  Commitments.  Subject to the terms and conditions set forth
herein, each Lender agrees to make Revolving Loans to the Borrower from time to
time during the Availability Period in an aggregate principal amount that will
not result in (a) such Lender’s Revolving Credit Exposure exceeding such Lender’s
Commitment or (b) the sum of the total Revolving Credit Exposures
exceeding the total Commitments.  Within
the foregoing limits and subject to the terms and conditions set forth herein,
the Borrower may borrow, prepay and reborrow Revolving Loans.

SECTION 2.02.  Loans and
Borrowings.

(a)           Each
Revolving Loan shall be made as part of a Borrowing consisting of Revolving
Loans made by the Lenders ratably in accordance with their respective
Commitments.  The failure of any Lender
to make any Loan required to be made by it shall not relieve any other Lender
of its obligations hereunder; provided that the Commitments of the
Lenders are several and no Lender shall be responsible for any other Lender’s
failure to make Loans as required.

(b)           Subject
to Section 2.11, each Revolving Loan shall be comprised entirely of
ABR Loans or Eurodollar Loans as the Borrower may request in accordance
herewith.  Each Lender at its option may
make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate
of such Lender to make such Loan; provided that any exercise of such
option shall not affect the obligation of the Borrower to repay such Loan in
accordance with the terms of this Agreement.

(c)           At
the commencement of each Interest Period for any Eurodollar Borrowing, such
Borrowing shall be in an aggregate principal amount of $5,000,000 or an
integral multiple of $1,000,000 in excess thereof.  At the time that each ABR Borrowing is made,
such Borrowing shall be in an aggregate principal amount of $1,000,000 or an integral
multiple of $1,000,000 in excess thereof; provided that an ABR Borrowing
or an Eurodollar Borrowing may be in an aggregate amount that is equal to the
entire unused balance of the total Commitments. 
Borrowings of more than one Type may be outstanding at the same time; provided
that there shall not at any time be more than a total of five (5) Eurodollar
Borrowings outstanding.

(d)           Notwithstanding
any other provision of this Agreement, the Borrower shall not be entitled to
request, or to elect to convert or continue, any Borrowing if the Interest
Period requested with respect thereto would end after the Maturity Date.

SECTION 2.03.  Requests for
Borrowings.  To request a Borrowing,
the Borrower shall notify the Administrative Agent of such request in writing (a)
in the case of a Eurodollar Borrowing, not later than 11:00 a.m., New
York City time, three (3) Business Days before the date of the proposed
Borrowing or (b) in the case of an ABR Borrowing, not later than 

 14
 

11:00 a.m., New York City time, one (1) Business Day before the
date of the proposed Borrowing.  Each
such Borrowing Request shall be irrevocable and shall be made by hand delivery
or telecopy to the Administrative Agent of a written Borrowing Request in the form
attached hereto as Exhibit B (with blanks appropriately completed in
conformity herewith) specifying the following information in compliance with Section 2.02:

(i)            the aggregate amount
of the requested Borrowing;

(ii)           the date of such
Borrowing, which shall be a Business Day;

(iii)          whether such Borrowing
is to be an ABR Borrowing or a Eurodollar Borrowing;

(iv)          in the case of a Eurodollar
Borrowing, the initial Interest Period to be applicable thereto, which shall be
a period contemplated by the definition of the term “Interest Period”; and

(v)           the location and number
of the Borrower’s account to which funds are to be disbursed, which shall
comply with the requirements of Section 2.04 and which shall be Account
# 230-254-632 at JPMorgan Chase Bank, N.A., ABA # 021-000-021, with reference
to “Capital Trust, Inc.”, unless two (2) officers of the Borrower provide
written notice of a different account.

If no election as to the Type of Borrowing is
specified, then the requested Borrowing shall be an Eurodollar Borrowing with
an Interest Period of one month.  If no
Interest Period is specified with respect to any requested Eurodollar Borrowing,
then the Borrower shall be deemed to have selected an Interest Period of one
month’s duration.  Promptly following
receipt of a  Borrowing Request in
accordance with this Section, the Administrative Agent shall advise each Lender
of the details thereof and of the amount of such Lender’s Loan to be made as part
of the requested Borrowing.

SECTION
2.04.  Funding of Borrowings.

(a)           Each Lender shall make
each Loan to be made by it hereunder on the proposed date thereof by wire
transfer of immediately available funds by 12:00 p.m. noon, New York City time,
to the account of the Administrative Agent most recently designated by it for
such purpose by notice to the Lenders. 
The Administrative Agent will make such Loans available to the Borrower by
promptly crediting the amounts so received, in like funds, to an account of the
Borrower maintained with the Administrative Agent in New York City and
designated by the Borrower in the applicable Borrowing Request.

(b)           Unless the
Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing that such Lender will not make available to the
Administrative Agent such Lender’s share of such Borrowing, the Administrative
Agent may assume that such Lender has made such share available on such date in
accordance with paragraph (a) of this Section and may, in reliance upon such
assumption, make available to the Borrower a corresponding amount.  In such event, if a Lender has not in fact
made its share of the applicable Borrowing available to the Administrative
Agent, then the applicable Lender and 

 15
 

the Borrower severally agree to pay to the
Administrative Agent forthwith on demand such corresponding amount with
interest thereon, for each day from and including the date such amount is made
available to the Borrower to but excluding the date of payment to the
Administrative Agent, at (i) in the case of such Lender, the greater of the
Federal Funds Effective Rate and a rate determined by the Administrative Agent
in accordance with banking industry rules on interbank compensation or (ii) in
the case of the Borrower, the interest rate applicable to ABR Loans.  If such Lender pays such amount to the
Administrative Agent, then such amount shall constitute such Lender’s Loan
included in such Borrowing.  Nothing
herein shall be deemed to relieve any Lender from its obligation to fulfill its
pro rata share of such Borrowing or to prejudice any rights which the
Administrative Agent or the Borrower may have against any Lender as a result of
any default by such Lender hereunder.

SECTION
2.05.  Interest Elections.

(a)           Each Borrowing
initially shall be of the Type specified in the applicable Borrowing Request
and, in the case of a Eurodollar Borrowing, shall have an initial Interest
Period as specified in such Borrowing Request. 
Thereafter, the Borrower may elect to convert such Borrowing to a
different Type or to continue such Borrowing and, in the case of a Eurodollar
Borrowing, may elect Interest Periods therefor, all as provided in this
Section.  The Borrower may elect
different options with respect to different portions of the affected Borrowing,
in which case each such portion shall be allocated ratably among the Lenders
holding the Loans comprising such Borrowing, and the Loans comprising each such
portion shall be considered a separate Borrowing.

(b)           To make an election
pursuant to this Section, the Borrower shall notify the Administrative Agent of
such election in writing by the time that a Borrowing Request would be required
under Section 2.03 if the Borrower were requesting a Borrowing of the
Type resulting from such election to be made on the effective date of such
election.  Each such Interest Election
Request shall be irrevocable and shall be made by hand delivery or telecopy to
the Administrative Agent of a written Interest Election Request in a form
approved by the Administrative Agent and signed by the Borrower.

(c)           Each Interest Election
Request shall specify the following information in compliance with Section 2.02:

(i)            the Borrowing to which such Interest
Election Request applies and, if different options are being elected with
respect to different portions thereof, the portions thereof to be allocated to
each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) below shall be specified for each resulting
Borrowing);

(ii)           the effective date of the election made
pursuant to such Interest Election Request, which shall be a Business Day;

(iii)          whether the resulting Borrowing is to be an
ABR Borrowing or a Eurodollar Borrowing; and

 16
 

(iv)          if the resulting Borrowing is a Eurodollar
Borrowing, the Interest Period to be applicable thereto after giving effect to
such election, which shall be a period contemplated by the definition of the
term “Interest Period”.

If any such Interest
Election Request requests a Eurodollar Borrowing but does not specify an
Interest Period, then the Borrower shall be deemed to have selected an Interest
Period of one month’s duration.

(d)           Promptly following
receipt of an Interest Election Request, the Administrative Agent shall advise
each Lender of the details thereof and of such Lender’s portion of each
resulting Borrowing.

(e)           If the Borrower fails
to deliver a timely Interest Election Request with respect to a Eurodollar
Borrowing prior to the end of the Interest Period applicable thereto, then,
unless such Borrowing is repaid as provided herein, at the end of such Interest
Period such Borrowing shall be continued as an Eurodollar Borrowing with an
Interest Period of one month. 
Notwithstanding any contrary provision hereof, if an Event of Default
has occurred and is continuing and the Administrative Agent, at the request of
the Required Lenders, so notifies the Borrower, then, so long as an Event of
Default is continuing (i) no outstanding Borrowing may be converted to or
continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar
Borrowing shall be converted to an ABR Borrowing at the end of the Interest
Period applicable thereto.

SECTION
2.06.  Termination, Reduction and
Increase of Commitments.

(a)           Unless previously
terminated, the Commitments shall terminate on the Maturity Date.

(b)           The Borrower may at any
time terminate, or from time to time reduce, the Commitments; provided
that (i) each reduction of the Commitments shall be in an amount that is an
integral multiple of $5,000,000 and no more than $25,000,000 and (ii) the
Borrower shall not terminate or reduce the Commitments if, after giving effect
to any concurrent prepayment of the Loans in accordance with Section 2.08,
the sum of the Revolving Credit Exposures would exceed the total Commitments.

(c)           The Borrower shall
notify the Administrative Agent of any election to terminate or reduce the
Commitments under paragraph (b) of this Section at least three (3) Business
Days prior to the effective date of such termination or reduction, specifying
such election and the effective date thereof. 
Promptly following receipt of any notice, the Administrative Agent shall
advise the Lenders of the contents thereof. 
Each notice delivered by the Borrower pursuant to this Section shall be
irrevocable; provided that a notice of termination of the Commitments
delivered by the Borrower may state that such notice is conditioned upon the
effectiveness of other credit facilities, in which case such notice may be
revoked by the Borrower (by notice to the Administrative Agent on or prior to
the specified effective date) if such condition is not satisfied.  Any termination or reduction of the
Commitments shall be permanent.  Each
reduction of the Commitments shall be made ratably among the Lenders in
accordance with their respective Commitments.

 17
 

(d)           The Borrower may, at
any time but on no more than two (2) occasions per year by notice to the
Administrative Agent, propose an increase in the total Commitments hereunder
(each such proposed increase being a “Commitment Increase”) either (x) by
having one or more existing Lenders increase its Commitment then in effect
(each an “Increasing Lender”) or (y) by adding as one or more Lenders
with a new Commitment hereunder a Person which is not then a Lender (each an “Assuming
Lender”) in the case of the foregoing clause (y) with the approval of the Administrative
Agent (not to be unreasonably withheld, in each case which notice shall specify
the name of each Increasing Lender and/or Assuming Lender, as applicable, the
amount of the Commitment Increase and the portion thereof being assumed by each
such Increasing Lender or Assuming Lender, and the date on which such
Commitment Increase is to be effective (the “Commitment Increase Date”)
(which shall be a Business Day at least three (3) Business Days after delivery
of such notice and thirty (30) days prior to the Maturity Date); provided
that:

(i)            the minimum aggregate amount of the increase
of the Commitment of any Increasing Lender, and the minimum amount of the
Commitment of any Assuming Lender, as part of any Commitment Increase shall be
in an amount that is integral multiple of $5,000,000;

(ii)           immediately after giving effect to any Commitment
Increase, the total Commitments hereunder shall not exceed $100,000,000;

(iii)          no Default shall have occurred and be
continuing on the relevant Commitment Increase Date or shall result from any
Commitment Increase;

(iv)          the representations and warranties of the
Borrower set forth in this Agreement shall be true and correct on and as of the
relevant Commitment Increase Date as if made on and as of such date (or, if any
such representation or warranty is expressly stated to have been made as of a specific
date, as of such specific date); and

(v)           the Borrower shall have paid the fee
specified in Section 2.09(d) to the Administrative Agent.

Each Commitment
Increase (and the increase of the Commitment of each Increasing Lender and/or
the new Commitment of each Assuming Lender, as applicable, resulting therefrom)
shall become effective as of the relevant Commitment Increase Date upon receipt
by the Administrative Agent, on or prior to 9:00 a.m., New York City time, on
such Commitment Increase Date, of (A) a certificate of a duly authorized
officer of the Borrower stating that the conditions with respect to such
Commitment Increase under this paragraph (d) have been satisfied and (B) an amendment
to this Agreement or other agreement, in form and substance satisfactory to the
Borrower and the Administrative Agent, pursuant to which, effective as of such
Commitment Increase Date, the Commitment of each such Increasing Lender shall
be increased or each such Assuming Lender, as applicable, shall undertake a Commitment,
duly executed by such Increasing Lender or Assuming Lender, as the case may be,
and the Borrower and acknowledged by the Administrative Agent, and without the
consent of any other Lender.  Upon the
Administrative Agent’s receipt of a fully executed agreement from each
Increasing Lender and/or Assuming Lender referred to in clause (B) above,
together with the certificate 

 18
 

referred to in
clause (A) above, the Administrative Agent shall record the information
contained in each such agreement in the Register and give prompt notice of the
relevant Commitment Increase to the Borrower and the Lenders (including, if
applicable, each Assuming Lender).  On
each Commitment Increase Date the Borrower shall simultaneously (i) prepay in
full the outstanding Loans (if any) held by the Lenders immediately prior to
giving effect to the relevant Commitment Increase, (ii) if the Borrower shall
have so requested in accordance with this Agreement, borrow new Loans from all
Lenders (including, if applicable, any Assuming Lender) such that, after giving
effect thereto, the Loans are held ratably by the Lenders in accordance with
their respective Commitments (after giving effect to such Commitment Increase)
and (iii) pay to the Lenders the amounts, if any, payable under Section 2.13.

SECTION
2.07.  Repayment of Loans;
Evidence of Indebtedness.

(a)           The Borrower hereby
unconditionally promises to pay to the Administrative Agent for the account of
each Lender the then unpaid principal amount of each Loan on the Maturity Date.

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

(c)           The Administrative
Agent shall maintain accounts in which it shall record (i) the amount of
each Loan made hereunder, the Class and Type thereof and the Interest Period
applicable thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable from the Borrower to each Lender hereunder
and (iii) the amount of any sum received by the Administrative Agent
hereunder for the account of the Lenders and each Lender’s share thereof.

(d)           The entries made in the
accounts maintained pursuant to paragraph (b) or (c) of this Section
shall be prima  facie evidence of the existence and amounts of the
obligations recorded therein; provided that the failure of any Lender or
the Administrative Agent to maintain such accounts or any error therein shall
not in any manner affect the obligation of the Borrower to repay the Loans in
accordance with the terms of this Agreement.

(e)           Any Lender may request
that Loans made by it be evidenced by a promissory note.  In such event, the Borrower shall prepare,
execute and deliver to such Lender a promissory note payable to the order of
such Lender (or, if requested by such Lender, to such Lender and its registered
assigns) and in a form approved by the Administrative Agent.  Thereafter, the Loans evidenced by such
promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 9.04) be represented by one or more
promissory notes in such form payable to the order of the payee named therein
(or, if such promissory note is a registered note, to such payee and its
registered assigns).

 19
 

SECTION
2.08.  Prepayment of Loans.

(a)           The Borrower shall have
the right at any time and from time to time to prepay any Borrowing in whole or
in part, subject to prior notice in accordance with paragraph (b) of this
Section.

(b)           The Borrower shall
notify the Administrative  Agent by
telecopy of any prepayment hereunder (i) in the case of prepayment of a
Eurodollar Borrowing, not later than 11:00 a.m., New York City time, one (1) Business
Day before the date of prepayment or (ii) in the case of prepayment of an ABR
Borrowing, not later than 11:00 a.m., New York City time, one (1) Business Day
before the date of prepayment; provided that any prepayment of (x) a
Eurodollar Borrowing shall be in a minimum principal amount of $5,000,000 and
(y) an ABR Borrowing shall be in a minimum principal amount of $1,000,000 or,
in each case, if less, the entire principal amount thereof then outstanding.  Each such notice shall be irrevocable and
shall specify the prepayment date and the principal amount of each Borrowing or
portion thereof to be prepaid; provided that, if a notice of prepayment
is given in connection with a conditional notice of termination of the
Commitments as contemplated by Section 2.06, then such notice of
prepayment may be revoked if such notice of termination is revoked in
accordance with Section 2.06. 
Promptly following receipt of any such notice relating to a Borrowing,
the Administrative Agent shall advise the Lenders of the contents thereof.  Each prepayment of a Borrowing shall be
applied ratably to the Loans included in the prepaid Borrowing.  Prepayments shall be accompanied by accrued
interest to the extent required by Section 2.10; provided that
any prepayment of a Eurodollar Borrowing shall be accompanied by any additional
amounts required pursuant to Section 2.10.

SECTION
2.09.  Fees.

(a)           The Borrower shall pay when
due to the Administrative Agent such fees as shall have been separately agreed upon
between the Borrower and the Administrative Agent in the Mandate Letter.

(b)           The Borrower shall pay
to the Administrative Agent, for the account of the applicable Lender (according
to its Applicable Percentage), an unused commitment fee on the daily average amount
by which the total Commitments exceeded the sum of the principal amount of the
outstanding Loans at the rate of (i) 0.15% per annum at any time the average
daily Revolving Credit Exposure for such quarter is greater than 50% of the total
Commitments and (ii) 0.30% per annum at any time the average daily Revolving
Credit Exposure for such quarter is equal to or less than 50% of the total Commitments.  Such fee shall be due and payable quarterly
in arrears on the last day Business Day of each March, June, September and
December, commencing with the first such date to occur after the Effective Date,
and on the Maturity Date.  Such fee shall
be calculated on the basis of the actual number of days elapsed in a 360-day
year.

(c)           Provided that the
Borrower exercises its option to extend the Commitment pursuant to Section 2.17,
the Borrower agrees to pay to the Administrative Agent on the Extension
Effective Date an extension fee as specified in the Mandate Letter.

(d)           Provided that the
Borrower exercises its option to a Commitment Increase pursuant to Section 2.06,
the Borrower agrees to pay to the Administrative Agent on the Commitment
Increase Date a fee as specified in the Mandate Letter based, in the aggregate,
on 

 20
 

the Increasing Lender’s pro rata share of the
Commitment Increase and/or the Assuming Lender’s pro rata share of the
Commitment Increase, as applicable.

(e)           All fees payable
hereunder shall be paid on the dates due, in immediately available funds, to
the Administrative Agent for distribution to the applicable Lender.  Fees paid shall be fully earned and non-refundable
when paid under any circumstances.

SECTION
2.10.  Interest.

(a)           The Loans comprising
each ABR Borrowing shall bear interest at the Alternate Base Rate plus
the Applicable Margin.

(b)           The Loans comprising
each Eurodollar Borrowing shall bear interest in the case of a Eurodollar
Revolving Loan, at the LIBO Rate for the Interest Period in effect for such
Borrowing plus the Applicable Margin.

(c)           Notwithstanding the
foregoing, if any principal of or interest on any Loan or any fee or other
amount payable by the Borrower hereunder is not paid when due, whether at
stated maturity, upon acceleration or otherwise, such overdue amount shall bear
interest, after as well as before judgment, at a rate per annum equal to (i) in
the case of overdue principal of any Loan, 2% plus the rate otherwise
applicable to such Loan as provided in the preceding paragraphs of this Section
or (ii) in the case of any other amount, 2% plus the rate applicable to
ABR Loans as provided in paragraph (a) of this Section.

(d)           Accrued interest on
each Loan shall be payable in arrears on each Interest Payment Date for such
Loan and, in the case of Revolving Loans, upon termination of the Commitments; provided
that (i) interest accrued pursuant to paragraph (d) of this Section shall be
payable on demand, (ii) in the event of any repayment or prepayment of any Loan
(other than a prepayment of an ABR Revolving Loan prior to the end of the
Availability Period), accrued interest on the principal amount repaid or
prepaid shall be payable on the date of such repayment or prepayment and (iii)
in the event of any conversion of any Eurodollar Revolving Loan prior to the
end of the current Interest Period therefor, accrued interest on such Loan
shall be payable on the effective date of such conversion.

(e)           All interest hereunder
shall be computed on the basis of a year of 360 days, except that interest
computed by reference to the Alternate Base Rate at times when the Alternate
Base Rate is based on the Prime Rate shall be computed on the basis of a year
of 365 days (or 366 days in a leap year), and in each case shall be payable for
the actual number of days elapsed (including the first day but excluding the last
day).  The applicable Alternate Base Rate
or LIBO Rate shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.

SECTION
2.11.  Alternate Rate of Interest.  If prior to the commencement of any Interest
Period for a Eurodollar Borrowing:

(a)           the Administrative Agent determines (which
determination shall be conclusive absent manifest error) that adequate and
reasonable means do not exist for ascertaining the LIBO Rate for such Interest
Period; or

 21
 

(b)           the Administrative Agent is advised by the
Required Lenders that the LIBO Rate for such Interest Period will not
adequately and fairly reflect the cost to such Lenders (or Lender) of making or
maintaining their Loans (or its Loan) included in such Borrowing for such
Interest Period;

then the Administrative
Agent shall give notice thereof to the Borrower and the Lenders by telephone or
telecopy as promptly as practicable thereafter and, until the Administrative
Agent notifies the Borrower and the Lenders that the circumstances giving rise
to such notice no longer exist, (i) any Interest Election Request that requests
the conversion of any Borrowing to, or continuation of any Borrowing as, a
Eurodollar Borrowing shall be ineffective, and (ii) if any Borrowing Request
requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR
Borrowing.

SECTION
2.12.  Increased Costs.

(a)           If any Change in Law
shall:

(i)            impose, modify or deem applicable any
reserve, special deposit or similar requirement against assets of, deposits
with or for the account of, or credit extended by, any Lender; or

(ii)           impose on any Lender or the London interbank
market any other condition affecting this Agreement or Eurodollar Loans made by
such Lender;

and the result of any of
the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Loan (or of maintaining its obligation to make any
such Loan) or to reduce the amount of any sum received or receivable by such
Lender hereunder (whether of principal, interest or otherwise), then the
Borrower will pay to such Lender such additional amount or amounts as will
compensate such Lender for such additional costs incurred or reduction
suffered.

(b)           If any Lender
determines that any Change in Law regarding capital requirements has or would
have the effect of reducing the rate of return on such Lender’s capital or on
the capital of such Lender’s holding company, if any, as a consequence of this
Agreement or the Loans made by such Lender to a level below that which such
Lender or such Lender’s holding company could have achieved but for such Change
in Law (taking into consideration such Lender’s policies and the policies of
such Lender’s holding company with respect to capital adequacy), then from time
to time the Borrower will pay to such Lender such additional amount or amounts
as will compensate such Lender or such Lender’s holding company for any such
reduction suffered.

(c)           A certificate of a
Lender setting forth the amount or amounts necessary to compensate such Lender
or its holding company as specified in paragraph (a) or (b) of this
Section shall be delivered to the Borrower and shall be conclusive absent
manifest error.  The Borrower shall pay
such Lender the amount shown as due on any such certificate within ten (10) days
after receipt thereof.

 22

(d)           Failure or delay on the
part of any Lender to demand compensation pursuant to this Section shall not
constitute a waiver of such Lender’s right to demand such compensation; provided
that the Borrower shall not be required to compensate a Lender pursuant to this
Section for any increased costs or reductions incurred more than 180 days prior
to the date that such Lender notifies the Borrower of the Change in Law giving
rise to such increased costs or reductions and of such Lender’s intention to
claim compensation therefor; provided  further that, if the Change
in Law giving rise to such increased costs or reductions is retroactive, then
the 180-day period referred to above shall be extended to include the period of
retroactive effect thereof.

SECTION 2.13.  Break Funding Payments.  In the event of (a) the payment of any
principal of any Eurodollar Loan other than on the last day of an Interest
Period applicable thereto (including as a result of an Event of Default), (b)
the conversion of any Eurodollar Loan other than on the last day of the
Interest Period applicable thereto, (c) the failure to borrow, convert,
continue or prepay any Eurodollar Loan on the date specified in any notice
delivered pursuant hereto (regardless of whether such notice may be revoked
under Section 2.08(b) and is revoked in accordance therewith) or (d) the
assignment of any Eurodollar Loan other than on the last day of the Interest
Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.16,
then, in any such event, the Borrower shall compensate each Lender for the
loss, cost and expense attributable to such event.  In the case of a Eurodollar Loan, such loss,
cost or expense to any Lender shall be deemed to include an amount determined
by such Lender to be the excess, if any, of (i) the amount of interest which
would have accrued on the principal amount of such Loan had such event not
occurred, at the LIBO Rate that would have been applicable to such Loan, for
the period from the date of such event to the last day of the then current
Interest Period therefor (or, in the case of a failure to borrow, convert or
continue, for the period that would have been the Interest Period for such
Loan), over (ii) the amount of interest which would accrue on such principal
amount for such period at the interest rate which such Lender would bid were it
to bid, at the commencement of such period, for dollar deposits of a comparable
amount and period from other banks in the eurodollar market.  A certificate of any Lender setting forth any
amount or amounts that such Lender is entitled to receive pursuant to this
Section shall be delivered to the Borrower and shall be conclusive absent
manifest error.  The Borrower shall pay
such Lender the amount shown as due on any such certificate within ten (10)
days after receipt thereof.

SECTION
2.14.  Taxes.

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

 23
 

(b)           In addition, the
Borrower shall pay any Other Taxes to the relevant Governmental Authority in
accordance with applicable law.

(c)           The Borrower shall
indemnify the Administrative Agent and each Lender, within ten (10) days after
written demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes paid by the Administrative Agent or such Lender, as the case may be, on
or with respect to any payment by or on account of any obligation of the
Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section) and any
penalties, interest and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such
payment or liability delivered to the Borrower by a Lender, or by the
Administrative Agent on its own behalf or on behalf of a Lender, shall be
conclusive absent manifest error.

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

(e)           Any Foreign Lender that
is entitled to an exemption from or reduction of withholding tax under the law
of the jurisdiction in which the Borrower is located, or any treaty to which
such jurisdiction is a party, with respect to payments under this Agreement
shall deliver to the Borrower (with a copy to the Administrative Agent), at the
time or times prescribed by applicable law, such properly completed and
executed documentation prescribed by applicable law or reasonably requested by
the Borrower as will permit such payments to be made without withholding or at
a reduced rate.

(f)            If the Administrative
Agent or a Lender determines, in its sole discretion, that it has received a
refund of any Taxes or Other Taxes as to which it has been indemnified by the
Borrower or with respect to which the Borrower has paid additional amounts
pursuant to this Section 2.14, it shall pay over such refund to the
Borrower (but only to the extent of indemnity payments made, or additional
amounts paid, by the Borrower under this Section 2.14 with respect to
the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket
expenses of the Administrative Agent or such Lender and without interest (other
than any interest paid by the relevant Governmental Authority with respect to
such refund); provided, that the Borrower, upon the request of the
Administrative Agent or such Lender, agrees to repay the amount paid over to
the Borrower (plus any penalties, interest or other charges imposed by the
relevant Governmental Authority) to the Administrative Agent or such Lender in
the event the Administrative Agent or such Lender is required to repay such
refund to such Governmental Authority. This Section shall not be construed to require
the Administrative Agent or any Lender to make available its tax returns (or
any other information relating to its taxes which it deems confidential) to the
Borrower or any other Person.

 24
 

SECTION
2.15.   Payments Generally; Pro Rata Treatment;
Sharing of Set-offs.

(a)           The Borrower shall make
each payment required to be made by it hereunder (whether of principal,
interest, fees or other amounts payable under Section 2.12, 2.13
or 2.14, or otherwise) prior to 12:00 p.m. noon, New York City time, on
the date when due, in immediately available funds, without set-off or
counterclaim.  Any amounts received after
such time on any date may, in the discretion of the Administrative Agent, be
deemed to have been received on the next succeeding Business Day for purposes
of calculating interest thereon.  All
such payments shall be made to the Administrative Agent at its offices at 1211
Avenue of the Americas, New York, New York, except that payments pursuant to Sections
2.12, 2.13, 2.14 and 9.03 shall be made directly to
the Persons entitled thereto.  The
Administrative Agent shall distribute any such payments received by it for the
account of any other Person to the appropriate recipient promptly following
receipt thereof.  If any payment
hereunder shall be due on a day that is not a Business Day, the date for
payment shall be extended to the next succeeding Business Day, and, in the case
of any payment accruing interest, interest thereon shall be payable for the
period of such extension.  All payments
hereunder shall be made in dollars.

(b)           If at any time
insufficient funds are received by and available to the Administrative Agent to
pay fully all amounts of principal, interest and fees then due hereunder, such
funds shall be applied (i) first, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of interest and fees then due to such parties, and (ii) second, towards
payment of principal then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of principal then due to such parties.

(c)           If any Lender shall, by
exercising any right of set-off or counterclaim or otherwise, obtain
payment in respect of any principal of or interest on any of its Revolving Loans
resulting in such Lender receiving payment of a greater proportion of the
aggregate amount of its Revolving Loans and accrued interest thereon than the
proportion received by any other Lender, then the Lender receiving such greater
proportion shall purchase (for cash at face value) participations in the
Revolving Loans of other Lenders to the extent necessary so that the benefit of
all such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective
Revolving Loans; provided that (i) if any such participations are
purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price
restored to the extent of such recovery, without interest, and (ii) the
provisions of this paragraph shall not be construed to apply to any payment
made by the Borrower pursuant to and in accordance with the express terms of
this Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans to any assignee or
participant, other than to the Borrower or any Subsidiary or Affiliate thereof
(as to which the provisions of this paragraph shall apply).  The Borrower consents to the foregoing and
agrees, to the extent it may effectively do so under applicable law, that any
Lender acquiring a participation pursuant to the foregoing arrangements may
exercise against the Borrower rights of set-off and counterclaim with respect
to such participation as fully as if such Lender were a direct creditor of the
Borrower in the amount of such participation.

(d)           Unless the
Administrative Agent shall have received notice from the Borrower prior to the
date on which any payment is due to the Administrative Agent for the account of
the Lenders hereunder that the Borrower will not make such payment, the 

 25
 

Administrative Agent may assume that the
Borrower has made such payment on such date in accordance herewith and may, in
reliance upon such assumption, distribute to the Lenders the amount due.  In such event, if the Borrower has not in
fact made such payment, then each of the Lenders severally agrees to repay to
the Administrative Agent forthwith on demand the amount so distributed to such
Lender with interest thereon, for each day from and including the date such
amount is distributed to it to but excluding the date of payment to the
Administrative Agent, at the greater of the Federal Funds Effective Rate and a
rate determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation.

(e)           If any Lender shall
fail to make any payment required to be made by it pursuant to Section 2.04(b)
or 2.15(d), then the Administrative Agent may, in its discretion
(notwithstanding any contrary provision hereof), apply any amounts thereafter
received by the Administrative Agent for the account of such Lender to satisfy
such Lender’s obligations under such Sections until all such unsatisfied
obligations are fully paid.

SECTION
2.16.  Mitigation Obligations;
Replacement of Lenders.

(a)           If any Lender requests
compensation under Section 2.12, or if the Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.14,
then such Lender shall use reasonable efforts to designate a different lending
office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would eliminate
or reduce amounts payable pursuant to Section 2.12 or 2.14, as
the case may be, in the future and (ii) would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such
Lender.  The Borrower hereby agrees to
pay all reasonable costs and expenses incurred by any Lender in connection with
any such designation or assignment.

(b)           If (i) any Lender
requests compensation under Section 2.12, (ii) the Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.14, (iii)
any Lender defaults in its obligation to fund Loans hereunder or (iv) in
connection with any proposed amendment, modification, termination, waiver or
consent with respect to any of the provisions hereof as contemplated by Section
9.02, the consent of Required Lenders shall have been obtained but the
consent of one or more of such other Lenders whose consent is required shall
not have been obtained, then the Borrower may, at its sole expense and effort,
upon notice to such Lender and the Administrative Agent, require such Lender to
assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in Section 9.04), all its interests, rights
and obligations under this Agreement (other than any outstanding Competitive
Loans held by it) to an assignee that shall assume such obligations (which assignee
may be another Lender, if a Lender accepts such assignment); provided
that (i) the Borrower shall have received the prior written consent of the
Administrative Agent, which consent shall not unreasonably be withheld, (ii)
such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans, accrued interest thereon, accrued fees and all other
amounts payable to it hereunder, from the assignee (to the extent of such
outstanding principal and accrued interest and fees) or the Borrower (in the
case of all other amounts) and (iii) in the case of any such assignment
resulting from a claim for compensation under Section 2.12 or
payments required to be made pursuant to Section 2.14, 

 26
 

such assignment will result in a reduction in
such compensation or payments.  A Lender
shall not be required to make any such assignment and delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances
entitling the Borrower to require such assignment and delegation cease to
apply.

SECTION
2.17.  Extension of Maturity Date.

(a)           Not earlier than ninety
(90) days prior to, nor later than forty-five (45) days prior to, the then
Stated Maturity Date, the Borrower may, upon written notice to the
Administrative Agent (which shall promptly notify the Lenders), request a
364-day extension of the Stated Maturity Date then in effect; provided
that the Borrower shall not have exercised its Term-Out Option.  Within fifteen (15) Business Days of delivery
of such notice, each Lender shall notify the Administrative Agent whether or
not it consents to such extension (which consent may be given or withheld in
such Lender’s sole and absolute discretion). 
Any Lender not responding within the above time period shall be deemed
not to have consented to such extension. 
The Administrative Agent shall promptly notify the Borrower and the
Lenders of the Lenders’ responses.  If
any Lender declines, or is deemed to have declined, to consent to such
extension, the Borrower may cause any such Lender to be replaced as a Lender in
accordance with the terms hereof.

(b)           The Stated Maturity
Date shall be extended only if Lenders holding at least 51% of the Commitments
(calculated prior to giving effect to any replacements of Lenders permitted herein)
(the “Consenting Lenders”) have consented thereto.  If so extended, the Stated Maturity Date, as
to the Consenting Lenders and their Commitments and Loans, shall be extended to
a date 364 days from the Stated Maturity Date then in effect, effective as of
the Stated Maturity Date then in effect (such existing Stated Maturity Date
being the “Extension Effective Date”); provided that each
non-Consenting Lender shall be required only to complete its Commitment up to
the previously effective Stated Maturity Date (without giving effect to such
extension).  All obligations and other
amounts payable hereunder to such non-Consenting Lender shall become due and
payable by the Borrower on the previously effective Stated Maturity Date
(without giving effect to such extension) and the total aggregate Commitment
shall be reduced by the total Commitment of all non-Consenting Lenders expiring
on such previously effective Stated Maturity Date (without giving effect to
such extension) unless one or more lenders (including other Lenders) shall have
agreed to assume or increase a Commitment hereunder.  The Administrative Agent shall promptly
confirm to the Lenders such extension and the Extension Effective Date.  As a condition precedent to such extension,
the Borrower shall (i) deliver to the Administrative Agent a certificate of the
Borrower dated as of the Extension Effective Date signed by a Responsible
Officer of the Borrower certifying that (x) before and after giving effect to
such extension, (A) the representations and warranties contained in Article III
are true and correct in all material respects on and as of the Extension
Effective Date, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they are true and correct
as of such earlier date, and except that for purposes of this Section 2.14,
the representations and warranties contained in Section 3.04 shall be
deemed to refer to the most recent financial statements furnished pursuant to Section
5.01 and (B) no Default or Event of Default exists and (y) no Material
Adverse Effect has occurred since the date of the most recent financial
statements furnished pursuant to Section 5.01 and (ii) have paid the fee
specified in Section 2.09(c) to the Administrative Agent.

 27
 

SECTION
2.18.  Term-Out Option.

(a)           Provided no Default or
Event of Default has occurred and is continuing, the Borrower may, upon prior
written notice to the Administrative Agent sent not earlier than forty-five (45)
days prior to, nor later than fifteen (15) days prior to, the Stated Maturity
Date, elect to have the principal balance of the Loans outstanding on the
Stated Maturity Date remain outstanding from the Stated Maturity Date to the
Term Loan Maturity Date as non-revolving Term Loans (the “Term-Out Option”).  As a condition precedent to the Term-Out
Option, the Borrower shall deliver to the Administrative Agent a certificate of
the Borrower certifying that (i) before and after giving effect to such
extension, (A) the representations and warranties contained in Article III
are true and correct in all material respects on and as of the effective date
of such Term-Out Option, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they are true
and correct as of such earlier date, and except that for purposes of this Section
2.18, the representations and warranties contained in Section 3.04 shall
be deemed to refer to the most recent financial statements furnished pursuant
to Section 5.01 and (B) no Default or Event of Default exists and (ii)
no Material Adverse Effect has occurred since the date of the most recent
financial statements furnished pursuant to Section 5.01.

(b)           During the period of
such Term Loans, the Borrower may repay in whole or in part but not reborrow
the outstanding Term Loans as provided in Section 2.08 (but may continue
the outstanding principal balance of maturing Loans pursuant to Section 2.02)
and the provisions of this Agreement relating to the Revolving Loans shall
apply mutatis mutandis to the Term Loans.

ARTICLE III

Representations and Warranties

The Borrower represents
and warrants to the Lenders that:

SECTION
3.01.  Organization; Powers.  Each of the Borrower and its Subsidiaries is
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, has all requisite power and authority to
carry on its business as now conducted and, except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect, is qualified to do business in, and is in good
standing in, every jurisdiction where such qualification is required.

SECTION
3.02.  Authorization; Enforceability.  The Transactions are within the Borrower’s corporate
powers and have been duly authorized by all necessary corporate and, if
required, stockholder action.  This
Agreement has been duly executed and delivered by the Borrower and constitutes
a legal, valid and binding obligation of the Borrower, enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors’ rights generally
and subject to general principles of equity, regardless of whether considered
in a proceeding in equity or at law.

 28
 

SECTION
3.03.  Governmental Approvals; No
Conflicts.  The Transactions (a) do
not require any consent or approval of, registration or filing with, or any
other action by, any Governmental Authority, except such as have been obtained
or made and are in full force and effect, (b) will not violate any applicable
law or regulation or the charter, by-laws or other organizational documents of
the Borrower or any of its Subsidiaries or any order of any Governmental
Authority, (c) will not violate or result in a default under any indenture,
agreement or other instrument binding upon the Borrower or any of its
Subsidiaries or its assets, or give rise to a right thereunder to require any
payment to be made by the Borrower or any of its Subsidiaries, and (d) will not
result in the creation or imposition of any Lien on any asset of the Borrower
or any of its Subsidiaries.

SECTION
3.04.  Financial Condition; No
Material Adverse Change.

(a)           The Borrower has
heretofore furnished to the Lenders its audited consolidated balance sheet and
statements of income, stockholders equity and cash flows as of and for the
fiscal year ended December 31, 2006, reported on by Ernst & Young LLP,
independent public accountants.  Such
financial statements present fairly, in all material respects, the financial
position and results of operations and cash flows of the Borrower and its
consolidated Subsidiaries as of such dates and for such periods in accordance
with GAAP.  Except as referred to or
reflected or provided in such balance sheets (or the related footnotes) as at
December 31, 2006, in the Borrower’s report on Form 10-K for the fiscal year
ended December 31, 2006, none of the Borrower nor any of its Subsidiaries has
on the Effective Date any material contingent liabilities, liabilities for
taxes, unusual forward or long-term commitments or unrealized or anticipated
losses from any unfavorable commitments that are required to be disclosed by
GAAP or in such reports on Form 10-K.

(b)           Since December 31, 2006,
there has been no material adverse change in the business, assets, operations,
prospects or condition, financial or otherwise, of the Borrower and its
Subsidiaries, taken as a whole.

SECTION
3.05.  Properties.

(a)           Each of the Borrower
and its Subsidiaries has good title to, or valid leasehold interests in, all
its real and personal property material to its business, except for minor
defects in title that do not interfere with its ability to conduct its business
as currently conducted or to utilize such properties for their intended
purposes.

(b)           Each of the Borrower
and its Subsidiaries owns, or is licensed to use, all trademarks, trade names,
copyrights, patents and other intellectual property material to its business,
and the use thereof by the Borrower and its Subsidiaries does not infringe upon
the rights of any other Person, except for any such infringements that,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.

SECTION
3.06.  Litigation and Environmental
Matters.

(a)           There are no actions,
suits or proceedings by or before any arbitrator or Governmental Authority
pending against or, to the knowledge of the Borrower, threatened against or
affecting the Borrower or any of its Subsidiaries (i) as to which there is
a reasonable 

 29
 

possibility of an adverse determination and
that, if adversely determined, could reasonably be expected, individually or in
the aggregate, to result in a Material Adverse Effect (other than the Disclosed
Matters) or (ii) that involve this Agreement or the Transactions.

(b)           Except for the
Disclosed Matters and except with respect to any other matters that,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect, neither the Borrower nor any of its Subsidiaries
(i) has failed to comply with any Environmental Law or to obtain, maintain
or comply with any permit, license or other approval required under any
Environmental Law, (ii) has become subject to any Environmental Liability,
(iii) has received notice of any claim with respect to any Environmental
Liability or (iv) knows of any basis for any Environmental Liability.

(c)           Since the date of this
Agreement, there has been no change in the status of the Disclosed Matters
that, individually or in the aggregate, has resulted in, or materially
increased the likelihood of, a Material Adverse Effect.

SECTION
3.07.  Compliance with Laws and
Agreements.  Each of the Borrower and
its Subsidiaries is in compliance with all laws, regulations and orders of any
Governmental Authority applicable to it or its property and all indentures,
agreements and other instruments binding upon it or its property, except where
the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.  No Default has occurred and is continuing.

SECTION
3.08.  Investment Company Status.  Neither the Borrower nor any of its
Subsidiaries is an “investment company” as defined in, or subject to regulation
under, the Investment Company Act of 1940, as amended.

SECTION
3.09.  Taxes.  Each of the Borrower and its Subsidiaries has
timely filed or caused to be filed all Tax returns and reports required to have
been filed and has paid or caused to be paid all Taxes required to have been
paid by it, except (a) Taxes that are being contested in good faith by
appropriate proceedings and for which the Borrower or such Subsidiary, as
applicable, has set aside on its books adequate reserves or (b) to the
extent that the failure to do so could not reasonably be expected to result in
a Material Adverse Effect.

SECTION
3.10.  ERISA.  No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events
for which liability is reasonably expected to occur, could reasonably be
expected to result in a Material Adverse Effect.  The present value of all accumulated benefit
obligations under each Plan (based on the assumptions used for purposes of
Statement of Financial Accounting Standards No. 87) did not, as of the
date of the most recent financial statements reflecting such amounts, exceed by
more than $5,000,000 the fair market value of the assets of such Plan, and the
present value of all accumulated benefit obligations of all underfunded Plans
(based on the assumptions used for purposes of Statement of Financial
Accounting Standards No. 87) did not, as of the date of the most recent
financial statements reflecting such amounts, exceed by more than $5,000,000 the
fair market value of the assets of all such underfunded Plans.

 30
 

SECTION
3.11.  Disclosure.  The Borrower has disclosed to the Lenders all
agreements, instruments and corporate or other restrictions to which it or any
of its Subsidiaries is subject, and all other matters known to it, that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect.  None of the
reports, financial statements, certificates or other information furnished by
or on behalf of the Borrower to the Administrative Agent or any Lender in
connection with the negotiation of this Agreement or delivered hereunder (as
modified or supplemented by other information so furnished) contains any
material misstatement of 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.

SECTION
3.12.  Solvency.  The Borrower and its consolidated
Subsidiaries have capital sufficient to carry on their business and
transactions and all business and transactions in which they are about to
engage and are now solvent and able to pay their respective Indebtedness as such
Indebtedness mature, and the Borrower and its consolidated Subsidiaries now own
property and assets having a value, both at fair valuation and at present fair
salable value, greater than the amount required to pay their existing Indebtedness.

SECTION
3.13.  Subsidiaries.  Set forth in Schedule 3.13 is a
complete and correct list of all of the Subsidiaries of the Borrower as of the
date hereof, together with, for each such Subsidiary, (a) the jurisdiction of
organization of such Subsidiary, (b) each Person holding Equity Interests of
such Subsidiary and (c) the nature of the Equity Interests held by each such
Person and the percentage of ownership of such Subsidiary represented by such Equity
Interests. Except as disclosed in Schedule 3.13, as of the date hereof,
(i) each of the Borrower and its Subsidiaries owns, free and clear of Liens
(other than Liens permitted in Section 6.02(b)), and has the
unencumbered right to vote, all outstanding Equity Interests in each Person
shown to be held by it in Schedule 3.13, (ii) all of the issued and
outstanding capital stock of each such Person organized as a corporation is
validly issued, fully paid and nonassessable and (iii) there are no outstanding
subscriptions, options, warrants, commitments, preemptive rights or agreements
of any kind (including any shareholders’ or voting trust agreements) for the
issuance, sale, registration or voting of, or securities convertible into, any
additional shares of capital stock of any class of, or partnership or other
ownership interests of any type in, any Subsidiary.

SECTION
3.14.  REIT Qualification.  The Borrower has elected to be taxed as a “real
estate investment trust” under the Code. 
The Borrower has qualified as a “real estate investment trust” under the
Code for its taxable year ended December 31, 2005.  The Borrower’s present and contemplated
operations, assets and income will enable the Borrower to meet the requirements
for qualification and taxation as a “real estate investment trust” under the Code.

SECTION
3.15.  Use of Proceeds; Margin
Regulations.  The proceeds of the
Loans are to be used solely for general corporate purposes and for general
working capital needs not in contravention of Article VI.  Not more than 25% of the assets of the
Borrower and its Subsidiaries on a consolidated basis consists of any Margin
Stock, and no part of the proceeds of any Loan will be used to buy or carry any
Margin Stock in violation of Regulation U. 
Neither 

 31
 

the Borrower nor any Subsidiary is generally
engaged in the business of buying or selling Margin Stock or extending credit
for the purpose of buying or carrying Margin Stock.

SECTION
3.16.  Insurance.  The properties of the Borrower and its
Subsidiaries are insured with financially sound and reputable insurance
companies not Affiliates of the Borrowers, in such amounts, with such
deductibles and covering such risks as are customarily carried by companies
engaged in similar businesses in localities where the Borrower or its
applicable Subsidiary operates.

SECTION
3.17.  Labor Matters.  Except as, in the aggregate, could not
reasonably be expected to have a Material Adverse Effect:  (a) there are no strikes or other labor
disputes against the Borrower or any of its Subsidiaries pending or, to the
knowledge of the Borrower, threatened; (b) hours worked by and payment made to
employees of the Borrower or any of its Subsidiaries have not been in violation
of the Fair Labor Standards Act or any other applicable Law dealing with such
matters; and (c) there are no complaints or charges against the Borrower or any
of its Subsidiaries pending or, to the knowledge of the Borrower, threatened to
be filed with any Governmental Authority or arbitrator based on, arising out of,
in connection with, or otherwise relating to the employment or termination of
employment by the Borrower of any individual which could reasonably be expected
to have a Material Adverse Effect.

SECTION
3.18.  Brokers’ Fees.  Neither the Borrower nor any Subsidiary has
any obligation to any Person in respect of any finder’s, broker’s, investment
banking or other similar fee in connection with the Transactions.

SECTION
3.19.  Ranking.  The Indebtedness of the Borrower hereunder
and all of the obligations hereunder constitute senior, unconditional and
unsubordinated Indebtedness of the Borrower and rank at least pari passu in priority of payment with all
other present and future unsecured and unsubordinated obligations of the
Borrower.

ARTICLE IV

Conditions

SECTION
4.01.  Effective Date.  The obligations of the Lenders to make Loans
hereunder shall not become effective until the date on which each of the
following conditions is satisfied (or waived in accordance with Section 9.02):

(a)           The Administrative Agent (or its counsel)
shall have received from each party hereto either (i) a counterpart of
this Agreement signed on behalf of such party or (ii) written evidence
satisfactory to the Administrative Agent (which may include telecopy
transmission of a signed signature page of this Agreement) that such party has
signed a counterpart of this Agreement.

(b)           The Administrative Agent shall have received
favorable written opinions (addressed to the Administrative Agent and the
Lenders and dated the Effective Date) of 
each of Bingham McCutchen LLP and Paul, Hastings, Janofsky & Walker
LLP, each as counsel for the Borrower, all in form and substance satisfactory to
the Administrative Agent, and covering such other matters relating to the
Borrower, this Agreement or any 

 32
 

Transaction as the Required Lenders shall reasonably request.  The Borrower hereby requests such counsels to
deliver such opinions.

(c)           The Administrative Agent shall have received
such documents and certificates as the Administrative Agent or its counsel may
reasonably request relating to the organization, existence and good standing of
the Borrower, the authorization of the Transactions and any other legal matters
relating to the Borrower, this Agreement or the Transactions, all in form and
substance satisfactory to the Administrative Agent and its counsel.

(d)           The Administrative Agent shall have received
a certificate, dated the Effective Date and signed by the President, a Vice
President or a Financial Officer of the Borrower, confirming compliance with
the conditions set forth in paragraphs (a) and (b) of Section 4.02.

(e)           The Administrative Agent shall have received
all fees and other amounts due and payable on or prior to the Effective Date,
including, to the extent invoiced, reimbursement or payment of all out-of-pocket
expenses required to be reimbursed or paid by the Borrower hereunder and under
the Mandate Letter.

The Administrative Agent
shall notify the Borrower and the Lenders of the Effective Date, and such
notice shall be conclusive and binding. 
Notwithstanding the foregoing, the obligations of the Lenders to make
Loans hereunder shall not become effective unless each of the foregoing
conditions is satisfied (or waived pursuant to Section 9.02) at or prior
to 3:00 p.m., New York City time, on March 22, 2007 (and, in the event such
conditions are not so satisfied or waived, the Commitments shall terminate at
such time).

SECTION
4.02.  Each Credit Event.  The obligation of each Lender to make a Loan
on the occasion of any Borrowing is subject to the satisfaction of the
following conditions:

(a)           The representations and warranties of the
Borrower set forth in this Agreement shall be true and correct on and as of the
date of such Borrowing (or, if any such representation or warranty is expressly
stated to have been made as of a specific date, as of such specific date).

(b)           At the time of and immediately after giving
effect to such Borrowing, no Default shall have occurred and be continuing.

Each Borrowing shall be
deemed to constitute a representation and warranty by the Borrower on the date
thereof as to the matters specified in paragraphs (a) and (b) of this Section.

ARTICLE V

Affirmative Covenants

Until the Commitments
have expired or been terminated and the principal of and interest on each Loan
and all fees payable hereunder shall have been paid in full, the Borrower
covenants and agrees with the Lenders that:

 33
 

SECTION
5.01.  Financial Statements; Ratings
Change and Other Information.  The
Borrower will furnish to the Administrative Agent and each Lender:

(a)           as soon as available and in any event within
ninety (90) days after the end of each fiscal year, the audited consolidated
balance sheet and related statements of operations, changes in shareholders’
equity and cash flows of the Borrower (to the extent not publicly available) as
of the end of and for each fiscal year of the Borrower, setting forth in each
case in comparative form the figures for the previous fiscal year, all reported
on by Ernst & Young LLP or other independent public accountants of
recognized national standing (without a “going concern” or like qualification
or exception and without any qualification or exception as to the scope of such
audit) to the effect that such consolidated financial statements present fairly
in all material respects the financial condition and results of operations of
the Borrower and its consolidated Subsidiaries on a consolidated basis in
accordance with GAAP consistently applied;

(b)           as soon as available and in any event within
forty-five (45) days after the end of each fiscal quarter, the consolidated
balance sheet and related statements of operations, changes in shareholders’
equity and cash flows of the Borrower (to the extent not publicly available) as
of the end of and for each of the first three fiscal quarters of each fiscal
year of Borrower and the then elapsed portion of each such fiscal year, setting
forth in each case in comparative form the figures for the corresponding period
or periods of (or, in the case of the balance sheet, as of the end of) the
previous fiscal year, all certified by the chief financial officer of the
Borrower as presenting fairly in all material respects the consolidated
financial condition and results of operations of the Borrower and its
consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied, subject to normal year-end audit adjustments and the
absence of footnotes;

(c)           concurrently with any delivery of financial
statements under clause (a) or (b) above, a certificate of a Financial
Officer of the Borrower (i) certifying as to whether a Default has
occurred and, if a Default has occurred, specifying the details thereof and any
action taken or proposed to be taken with respect thereto, (ii) setting
forth reasonably detailed calculations demonstrating compliance with Sections 6.01,
6.05 and 6.08, (iii) stating whether any change in GAAP or
in the application thereof has occurred since the date of the audited financial
statements referred to in Section 3.04 and, if any such change has
occurred, specifying the effect of such change on the financial statements
accompanying such certificate and (iv) certifying any reconciliation of the
Borrower’s GAAP liabilities with its Total Indebtedness detailing the
exclusions, together with a narrative description of the rationale for treating
such items as Excluded Liabilities, to the extent any Excluded Liabilities
constitute a difference between the Borrower’s liabilities according to GAAP
and the Borrower’s Total Indebtedness used to calculate the ratio of Total
Indebtedness to Consolidated Tangible Net Worth;

(d)           to the extent not publicly available, copies
of all periodic and other reports, proxy statements and other materials filed
by the Borrower or any Subsidiary with the SEC or the NYSE, any other national
securities exchange, any commodities 

 34
 

exchange or any self-regulatory organization, or distributed by the
Borrower to its shareholders generally, as the case may be; and

(e)           promptly following any request therefor,
such other information that is regularly prepared by the Borrower regarding the
operations, business affairs and financial condition of the Borrower or any
Subsidiary, or compliance with the terms of this Agreement, as the
Administrative Agent or any Lender may reasonably request.

SECTION
5.02.   Notices of Material Events.  The Borrower will furnish to the
Administrative Agent and each Lender prompt written notice of the following:

(a)            the occurrence of any Default;

(b)           the filing or commencement of any action,
suit or proceeding by or before any arbitrator or Governmental Authority
against or affecting the Borrower or any Affiliate thereof that, if adversely
determined, could reasonably be expected to result in a Material Adverse
Effect;

(c)           (i) any failure to comply with any Environmental
Law or to obtain, maintain or comply with any permit, license or other approval
required under any Environmental Law, (ii) any Environmental Liability, (iii) a
notice of any claim with respect to any Environmental Liability or (iv)
knowledge of any basis for any Environmental Liability, in each case, that,
individually, or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect;

(d)           the occurrence of any ERISA Event that,
alone or together with any other ERISA Events that have occurred, could
reasonably be expected to result in liability of the Borrower and its
Subsidiaries in an aggregate amount exceeding $5,000,000; and

(e)           any other development that results in, or
could reasonably be expected to result in, a Material Adverse Effect.

Each notice delivered
under this Section shall be accompanied by a statement of a Financial Officer
or other executive officer of the Borrower setting forth the details of the
event or development requiring such notice and any action taken or proposed to
be taken with respect thereto.

SECTION
5.03.  Existence; Conduct of Business.  The Borrower will, and will cause each of its
Subsidiaries to, do or cause to be done all things necessary to preserve, renew
and keep in full force and effect its legal existence and the rights, licenses,
permits, privileges and franchises material to the conduct of its business; provided
that the foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 6.03.

SECTION
5.04.  Payment of Obligations.  The Borrower will, and will cause each of its
Subsidiaries to, pay its obligations, including Tax liabilities, that, if not
paid, could result in a Material Adverse Effect before the same shall become
delinquent or in default, except where (a) the validity or amount thereof is
being contested in good faith by appropriate proceedings, (b) the Borrower or
such Subsidiary has set aside on its books adequate reserves with respect
thereto 

 35
 

in accordance with GAAP and (c) the failure
to make payment pending such contest could not reasonably be expected to result
in a Material Adverse Effect.

SECTION
5.05.  Maintenance of Properties;
Insurance.  The Borrower will, and
will cause each of its Subsidiaries to, (a) keep and maintain all property
material to the conduct of its business in good working order and condition,
ordinary wear and tear excepted, and (b) maintain, with financially sound
and reputable insurance companies, insurance in such amounts and against such
risks as are customarily maintained by companies engaged in the same or similar
businesses operating in the same or similar locations.

SECTION
5.06.  Books and Records; Inspection
Rights.  The Borrower will, and will
cause each of its Subsidiaries to, keep proper books of record and account in
which full, true and correct entries are made of all dealings and transactions
in relation to its business and activities. 
The Borrower will, and will cause each of its Subsidiaries to, permit
any representatives designated by the Administrative Agent or any Lender, upon
reasonable prior notice, to visit and inspect its properties, to examine and
make extracts from its books and records, and to discuss its affairs, finances
and condition with its officers and independent accountants, all at such
reasonable times and as often as reasonably requested.

SECTION
5.07.  Compliance with Laws.  The Borrower will, and will cause each of its
Subsidiaries to, comply with all laws, rules, regulations and orders of any
Governmental Authority applicable to it or its property, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.

SECTION
5.08.  Use of Proceeds.  The proceeds of the Loans will be used solely
for general corporate purposes and general working capital needs of the
Borrower not in contravention of Article VI.  Not more than 25% of the assets of the
Borrower and its Subsidiaries on a consolidated basis will consist of any
Margin Stock, and no part of the proceeds of any Loan will be used to buy or
carry any Margin Stock in violation of Regulation U.  Neither the Borrower nor any Subsidiary will
be engaged in the business of buying or selling Margin Stock or extending
credit for the purpose of buying or carrying Margin Stock.

SECTION
5.09.  REIT Status.  The Company shall timely elect that the
Company be treated as a “real estate investment trust”, and to maintain in
effect the Company’s status as a “real estate investment trust” under the Code
following such election.

SECTION
5.10.  NYSE Status.  The Company shall maintain the listing of its
“Class A common stock”, par value $0.01 per share, on the NYSE or another
nationally—recognized stock exchange.

SECTION
5.11.  Ranking.  The Indebtedness of the Borrower hereunder
and all of the obligations hereunder will at all times (i) constitute senior,
unconditional and unsubordinated Indebtedness of the Borrower and (ii) rank at
least pari passu in priority of
payment with all other present and future unsecured and unsubordinated
obligations of the Borrower.

 36
 

ARTICLE VI

Negative Covenants

Until the Commitments
have expired or terminated and the principal of and interest on each Loan and
all fees payable hereunder have been paid in full, the Borrower covenants and
agrees with the Lenders that:

SECTION
6.01.  Indebtedness.  The Borrower will not, and will not permit
any Subsidiary to, create, incur, assume or permit to exist any Indebtedness
other than (i) unsecured Recourse Indebtedness that is pari passu with the Loan
upon prior written notice to the Lenders, (ii) Non-Recourse Indebtedness,
(iii) Recourse Indebtedness of the Borrower or its Subsidiaries in respect
of, and any obligations or liabilities of the Borrower or its Subsidiaries, as
the case may be, arising from, Repurchase Transactions entered into in the
ordinary course of business of the Borrower or its Subsidiaries, as
applicable), and (iv) unsecured Subordinated Indebtedness upon prior
written notice to the Lenders.

SECTION
6.02.  Liens.  The Borrower will not, and will not permit
any Subsidiary to, create, incur, assume or permit to exist any Lien on any
property or asset now owned or hereafter acquired by it, or assign or sell any
income or revenues (including accounts receivable) or rights in respect of any
thereof, except:

(a)           Permitted Encumbrances;

(b)           any Lien on any
property or asset of the Borrower or any Subsidiary existing on the date hereof
and set forth in Schedule 6.02; provided that (i) such Lien shall not
apply to any other property or asset of the Borrower or any Subsidiary and (ii)
such Lien shall secure only those obligations which it secures on the date
hereof and extensions, renewals and replacements thereof that do not increase
the outstanding principal amount thereof; and

(c)           any Lien on any
property or asset of the Borrower or any Subsidiary that secures Indebtedness
permitted by Section 6.01(ii) and (iii) of this Agreement.

SECTION
6.03.  Mergers, Consolidations, Sales
of Assets, etc.

(a)           The Borrower will not,
and will not permit any Subsidiary to, merge, dissolve, liquidate, consolidate
with or into any other Person, or permit any other Person to merge into or
consolidate with it, or sell, transfer, lease or otherwise dispose of (in one
transaction or in a series of transactions) all or substantially all of the assets
of the Borrower and the Subsidiaries, taken as a whole (whether now owned or
hereafter acquired); provided that, if at the time thereof and
immediately after giving effect thereto no Default shall have occurred and be
continuing, (1) any Person may merge into the Borrower in a transaction in
which the Borrower is the surviving entity, (2) any Person may merge into any
Subsidiary in a transaction in which the surviving entity is a Subsidiary, (3)
any Subsidiary may sell, transfer, lease or otherwise dispose of its assets to
the Borrower or to another Subsidiary, and (4) any Subsidiary may liquidate or
dissolve if the Borrower (x) determines in good faith that such liquidation or dissolution
is in the best interests of the Borrower and does not materially and adversely
affect the rights of Lenders hereunder and (y) furnishes prior written notice
to the Lenders; provided, further, that if at the time thereof
and immediately after giving effect thereto no Default shall have occurred and
be continuing, the Borrower may merge with and into any Person in a 

 37
 

transaction in which such Person is the
surviving entity if (i) such surviving entity complies with certain applicable
credit requirements to be determined in the Lenders’ sole discretion, (ii) such
surviving entity expressly assumes to the satisfaction of the Lenders the due
and punctual performance and observance of all terms, conditions, covenants,
agreements and obligations of this Agreement and the Mandate Letter, (iii) the
Borrower has obtained the prior written approval of the Lenders.

(b)           The Borrower and the
Subsidiaries shall continue in the primary line of business of owning and
managing loan assets and other debt investments and businesses reasonably
related thereto.

SECTION
6.04.  Restricted Payments.  The Borrower will not, and will not permit
any of its Subsidiaries to, declare or make, or agree to pay or make, directly
or indirectly, any Restricted Payment, except (a) the Borrower may declare and
pay dividends with respect to its Equity Interests payable solely in additional
shares of its capital stock, (b) Subsidiaries may declare and pay dividends and
distributions ratably with respect to their Equity Interests, (c) the Borrower
may declare and pay cash dividends and distributions in such amounts (but not
more than such amounts) and at such times as shall be necessary to meet the
requirements for qualification and taxation as a “real estate investment trust”
under the Code and (d) so long as no Event of Default shall have occurred and
be continuing or would result therefrom, the Borrower may declare and pay cash
dividends during any calendar year in an aggregate amount not at any time
exceeding 110% of the Borrower’s Adjusted Earnings for such year and (e) the
Borrower may make Restricted Payments (made solely in the form of its common
stock) to employees in connection with its stock option and similar plans.  For purposes of this Agreement, “Adjusted
Earnings” shall mean, for any period, net income (as reflected on the
Borrower’s consolidated financial statements in accordance with GAAP) allocable
to holders of common stock of the Borrower plus depreciation, depletion,
amortization, losses from discontinued operations and extraordinary losses,
less gain from discontinued operations and extraordinary gains, in each case
allocable to holders of common stock of the Borrower.

SECTION
6.05.  Transactions with Affiliates.  The Borrower will not, and will not permit
any of its Subsidiaries to, sell, lease or otherwise transfer any property or
assets to, or purchase, lease or otherwise acquire any property or assets from,
or otherwise engage in any other transactions with, any of its Affiliates,
except (a) in the ordinary course of business at prices and on terms and conditions
not less favorable to the Borrower or such Subsidiary than could be obtained on
an arm’s-length basis from unrelated third parties, (b) transactions between or
among the Borrower and its wholly owned Subsidiaries not involving any other
Affiliate and (c) any Restricted Payment permitted by Section 6.04.

SECTION
6.06.  Restrictive Agreements.  The Borrower will not, and will not permit
any of its Subsidiaries to, directly or indirectly, enter into, incur or permit
to exist any agreement or other arrangement that prohibits, restricts or
imposes any condition upon (a) the ability of the Borrower or any Subsidiary to
create, incur or permit to exist any Lien upon any of its property or assets,
or (b) the ability of any Subsidiary to pay dividends or other distributions
with respect to any shares of its capital stock or to make or repay loans or
advances to the Borrower or any other Subsidiary or to Guarantee Indebtedness
of the Borrower or any other Subsidiary; provided that the foregoing
shall not apply to (i) restrictions and conditions imposed 

 38

by law or by this Agreement, (ii)
restrictions and conditions existing on the date hereof identified on Schedule
6.06 (but shall apply to any extension or renewal of, or any amendment or
modification expanding the scope of, any such restriction or condition), (iii)
customary restrictions and conditions contained in agreements relating to the
sale of a Subsidiary pending such sale, provided such restrictions and
conditions apply only to the Subsidiary that is to be sold and such sale is
permitted hereunder, (iv) (in the case of clause (a) above) restrictions or
conditions imposed by any agreement relating to secured Indebtedness permitted
by this Agreement if such restrictions or conditions apply only to the property
or assets securing such Indebtedness and customary provisions in leases and
other contracts restricting the assignment thereof and (v) restrictions or
conditions imposed by any agreement relating to Non-Recourse Indebtedness
permitted by this Agreement.

SECTION
6.07.  Organizational Documents.  The Borrower shall not amend, modify or
change its Organizational Documents in a manner adverse to the Lenders.

SECTION
6.08.  Financial Covenants.  The Borrower will not permit (a) at any time Consolidated
Tangible Net Worth to be less than the sum of (i) $375,000,000 and (ii) 85% of
the Net Proceeds received after the Effective Date, (b) at the end of any
fiscal quarter, the ratio of Total Indebtedness to Consolidated Tangible Net
Worth to exceed 10.00:1.00, (c) at the end of any fiscal quarter, the ratio of Total
Recourse Indebtedness to Consolidated Tangible Net Worth to exceed 3.75:1.00
and (d) at the end of any fiscal quarter, the ratio of EBITDA to Fixed Charges
to be less than 1.20:1.00 for the preceding four quarters then ending.

ARTICLE VII

Events of Default

If any of the following
events (“Events of Default”) shall occur:

(i)            the Borrower shall fail to pay any
principal of any Loan when and as the same shall become due and payable,
whether at the due date thereof or at a date fixed for prepayment thereof or
otherwise;

(a)           the Borrower shall fail to pay any interest
on any Loan or any fee or any other amount (other than an amount referred to in
clause (a) of this Article) payable under this Agreement, when and as the
same shall become due and payable, and such failure shall continue unremedied
for a period of five (5) days;

(b)           any representation or warranty made or
deemed made by or on behalf of the Borrower or any Subsidiary in or in
connection with this Agreement or any amendment or modification hereof or
waiver hereunder, or in any report, certificate, financial statement or other
document furnished pursuant to or in connection with this Agreement or any
amendment or modification hereof or waiver hereunder, shall prove to have been
incorrect in any material respect when made or deemed made;

(c)           the Borrower shall fail to observe or
perform any covenant, condition or agreement contained in (x) Section
5.01(a) through (c) (for which such failure shall 

 39
 

continue unremedied for a period of three (3) Business Days), (y)
Section 5.02, 5.03 (with respect to the Borrower’s existence) or 5.08
or (z) Article VI;

(d)           the Borrower shall fail to observe or
perform any covenant, condition or agreement contained in this Agreement (other
than those specified in clause (a), (b) or (c) of this Article), and such
failure shall continue unremedied for a period of thirty (30) days after
notice thereof from the Administrative Agent to the Borrower (which notice will
be given at the request of any Lender);

(e)           the Borrower or any Subsidiary
shall fail to make any payment (whether of principal or interest and
regardless of amount) in respect of any Recourse Indebtedness of the Borrower in
aggregate principal amount exceeding $15,000,000 (such Indebtedness referred to
herein as the “Material Recourse Indebtedness”) (other than the Loans),
when and as the same shall become due and payable;

(f)            any event or condition occurs that results
in any Material Recourse Indebtedness (other than the Loans) becoming due prior
to its scheduled maturity or that enables or permits (after the expiration of
all grace or cure periods) the holder or holders of any Material Recourse Indebtedness
(other than the Loans) or any trustee or agent on its or their behalf to cause
any Material Recourse Indebtedness (other than the Loans) to become due, or to
require the prepayment, repurchase, redemption or defeasance thereof, prior to
its scheduled maturity; provided that this clause (f) shall not
apply to secured Indebtedness that becomes due as a result of the voluntary
sale or transfer of the property or assets securing such Indebtedness;

(g)           any Material Subsidiary shall fail to make
any payment (whether of principal or interest and regardless of amount) in
respect of any Indebtedness of such Person (such Indebtedness referred to
herein as the “Material Subsidiary Indebtedness”), when and as the same
shall become due and payable;

(h)           any event or condition occurs that results
in any Material Subsidiary Indebtedness becoming due prior to its scheduled
maturity or that enables or permits (after the expiration of all grace or cure
periods) the holder or holders of any Material Subsidiary Indebtedness or any
trustee or agent on its or their behalf to cause any Material Subsidiary
Indebtedness to become due, or to require the prepayment, repurchase,
redemption or defeasance thereof, prior to its scheduled maturity; provided
that this clause (h) shall not apply to secured Indebtedness that becomes due
as a result of the voluntary sale or transfer of the property or assets
securing such Indebtedness;

(i)            an involuntary proceeding shall be
commenced or an involuntary petition shall be filed seeking
(i) liquidation, reorganization or other relief in respect of (x) the
Borrower or (y) any one or more Subsidiary or Affiliate of the Borrower to
which the Consolidated Tangible Net Worth attributable to such one or more Subsidiary
or Affiliate, individually, is $15,000,000 or more, or, in the aggregate, is
$50,000,000 or more (each such Subsidiary, a “Material Subsidiary”), or
any of its respective debts, or of a substantial part of its respective assets,
under any Federal, state or foreign bankruptcy, insolvency, receivership or
similar law now or hereafter in effect or (ii) the appointment 

 40
 

of a receiver, trustee, custodian, sequestrator, conservator or similar
official for the Borrower or a Material Subsidiary or for a substantial part of
its assets, and, in any such case, such proceeding or petition shall continue
undismissed for thirty (30) days or an order or decree approving or
ordering any of the foregoing shall be entered;

(j)            the Borrower or any Material Subsidiary
shall (i) voluntarily commence any proceeding or file any petition seeking
liquidation, reorganization or other relief under any Federal, state or foreign
bankruptcy, insolvency, receivership or similar law now or hereafter in effect,
(ii) consent to the institution of, or fail to contest in a timely and
appropriate manner, any proceeding or petition described in clause (j) of this
Article, (iii) apply for or consent to the appointment of a receiver,
trustee, custodian, sequestrator, conservator or similar official for the
Borrower or any Material Subsidiary or for a substantial part of its assets,
(iv) file an answer admitting the material allegations of a petition filed
against it in any such proceeding, (v) make a general assignment for the
benefit of creditors or (vi) take any action for the purpose of effecting
any of the foregoing;

(k)           the Borrower or any Material Subsidiary
shall become unable, admit in writing its inability or fail generally to pay
its debts as they become due;

(l)            one or more judgments for the payment of
money in an aggregate amount in excess of $15,000,000 shall be rendered against
the Borrower, any Subsidiary or any combination thereof and the same shall
remain undischarged for a period of thirty (30) consecutive days during
which execution shall not be effectively stayed, or any action shall be legally
taken by a judgment creditor to attach or levy upon any assets of the Borrower or
any Subsidiary to enforce any such judgment;

(m)          an ERISA Event shall have occurred that, in
the opinion of the Required Lenders, when taken together with all other ERISA
Events that have occurred, could reasonably be expected to result in liability
of the Borrower and its Subsidiaries in an aggregate amount exceeding $5,000,000;
or

(n)           a Change in Control shall occur;

then, and in every such
event (other than an event with respect to the Borrower described in clause (i)
or (j) of this Article), and at any time thereafter during the continuance of
such event, the Administrative Agent, at the request of the Required Lenders,
shall, by notice to the Borrower, take either or both of the following actions,
at the same or different times:  (i) terminate the Commitments,
and thereupon the Commitments shall terminate immediately, and
(ii) declare the Loans then outstanding to be due and payable in whole (or
in part, in which case any principal not so declared to be due and payable may
thereafter be declared to be due and payable), and thereupon the principal of
the Loans so declared to be due and payable, together with accrued interest
thereon and all fees and other obligations of the Borrower accrued hereunder,
shall become  due and payable
immediately, without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by the Borrower; and in case of any event with
respect to the Borrower described in clause (i) or (j) of this Article, the
Commitments shall automatically terminate and the principal of the Loans then
outstanding, 

 41
 

together with accrued
interest thereon and all fees and other obligations of the Borrower accrued
hereunder, shall automatically become due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower.

ARTICLE VIII

The Administrative Agent

Each of the Lenders
hereby irrevocably appoints the Administrative Agent as its agent and
authorizes the Administrative Agent to take such actions on its behalf and to
exercise such powers as are delegated to the Administrative Agent by the terms
hereof, together with such actions and powers as are reasonably incidental
thereto.

The bank serving as the
Administrative Agent hereunder shall have the same rights and powers in its
capacity as a Lender as any other Lender and may exercise the same as though it
were not the Administrative Agent, and such bank and its Affiliates may accept
deposits from, lend money to and generally engage in any kind of business with
the Borrower or any Subsidiary or other Affiliate thereof as if it were not the
Administrative Agent hereunder.

The Administrative Agent
shall not have any duties or obligations except those expressly set forth
herein.  Without limiting the generality
of the foregoing, (a) the Administrative Agent shall not be subject to any
fiduciary or other implied duties, regardless of whether a Default has occurred
and is continuing, (b) the Administrative Agent shall not have any duty to
take any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated hereby that the
Administrative Agent is required to exercise in writing as directed by the
Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 9.02), and (c)
except as expressly set forth herein, the Administrative Agent shall not have
any duty to disclose, and shall not be liable for the failure to disclose, any
information relating to the Borrower or any of its Subsidiaries that is
communicated to or obtained by the bank serving as Administrative Agent or any
of its Affiliates in any capacity.  The
Administrative Agent shall not be liable for any action taken or not taken by it
with the consent or at the request of the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 9.02) or in the absence of its
own gross negligence or willful misconduct. 
The Administrative Agent shall be deemed not to have knowledge of any
Default unless and until written notice thereof is given to the Administrative
Agent by the Borrower or a Lender, and the Administrative Agent shall not be
responsible for or have any duty to ascertain or inquire into (i) any
statement, warranty or representation made in or in connection with this
Agreement, (ii) the contents of any certificate, report or other document
delivered hereunder or in connection herewith, (iii) the performance or
observance of any of the covenants, agreements or other terms or conditions set
forth herein, (iv) the validity, enforceability, effectiveness or
genuineness of this Agreement or any other agreement, instrument or document,
or (v) the satisfaction of any condition set forth in Article IV
or elsewhere herein, other than to confirm receipt of items expressly required
to be delivered to the Administrative Agent.

 42
 

The Administrative Agent
shall be entitled to rely upon, and shall not incur any liability for relying
upon, any notice, request, certificate, consent, statement, instrument,
document or other writing believed by it to be genuine and to have been signed
or sent by the proper Person.  The
Administrative Agent also may rely upon any statement made to it orally or by
telephone and believed by it to be made by the proper Person, and shall not
incur any liability for relying thereon. 
The Administrative Agent may consult with legal counsel (who may be
counsel for the Borrower), independent accountants and other experts selected
by it, and shall not be liable for any action taken or not taken by it in
accordance with the advice of any such counsel, accountants or experts.

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

Subject to the
appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying
the Lenders and the Borrower.  Upon any
such resignation, the Required Lenders shall have the right, in consultation
with the Borrower, to appoint a successor. 
If no successor shall have been so appointed by the Required Lenders and
shall have accepted such appointment within thirty (30) days after the
retiring Administrative Agent gives notice of its resignation, then the
retiring Administrative Agent may (in consultation with the Borrower), on
behalf of the Lenders, appoint a successor Administrative Agent which shall be
a bank with an office in New York, New York, or an Affiliate of any such
bank.  Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such successor
shall 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 fees payable by the Borrower to a
successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between the Borrower and such
successor.  After the Administrative
Agent’s resignation hereunder, the provisions of this Article and Section 9.03
shall continue in effect for the benefit of such retiring Administrative Agent,
its sub-agents and their respective Related Parties in respect of any
actions taken or omitted to be taken by any of them while it was acting as
Administrative Agent.

Each Lender acknowledges
that it has, independently and without reliance upon the Administrative Agent
or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into
this Agreement.  Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall from time to time deem appropriate, continue to make
its own decisions in taking or not taking action under or based upon this
Agreement, any related agreement or any document furnished hereunder or
thereunder.

 43
 

ARTICLE IX

Miscellaneous

SECTION
9.01.  Notices.

(a)           Except in the case of
notices and other communications expressly permitted to be given by telephone
(and subject to paragraph (b) below), all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by
telecopy, as follows:

(i)            if to the Borrower, to it at Capital Trust,
Inc., 410 Park Avenue, 14th Floor, New York, NY 10022, Attention of Douglas N.
Armer (Telecopy No. (212) 655-0044), with a copy to Capital Trust, Inc.,
410 Park Avenue, 14th Floor, New York, NY 10022, Attention of Geoffrey G.
Jervis (Telecopy No. (212) 655-0044);

(ii)           if to the Administrative Agent, to WestLB
AG, New York Branch, 1211 Avenue of the Americas, New York, New York 10036,
Attention of Lillian Tung Lum (Telecopy No. (212) 789-0010), with a copy to WestLB
AG, New York Branch, 1211 Avenue of the Americas, New York, New York 10036, Attention
of Andrea Bailey (Telecopy No. (212) 302-7946);

(iii)          if to any other Lender, to it at its address
(or telecopy number) set forth in its Administrative Questionnaire.

(b)           Notices and other
communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative
Agent; provided that the foregoing shall not apply to notices pursuant
to Article II unless otherwise agreed by the Administrative Agent and
the applicable Lender.  The
Administrative Agent or the Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications
pursuant to procedures approved by it; provided that approval of such
procedures may be limited to particular notices or communications.

(c)           Any party hereto may
change its address or telecopy number for notices and other communications
hereunder by notice to the other parties hereto.  All notices and other communications given to
any party hereto in accordance with the provisions of this Agreement shall be
deemed to have been given on the date of receipt.

SECTION
9.02.  Waivers; Amendments.

(a)           No failure or delay by
the Administrative Agent or any Lender in exercising any right or power
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power.  The rights and remedies of the Administrative
Agent and the Lenders hereunder are cumulative and are not exclusive of any
rights or remedies that they would otherwise have.  No waiver of any provision of this Agreement
or consent to any departure by 

 44
 

the Borrower therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) of this
Section, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given.  Without limiting the generality of the
foregoing, the making of a Loan shall not be construed as a waiver of any
Default, regardless of whether the Administrative Agent or any Lender may have
had notice or knowledge of such Default at the time.

(b)           Neither this Agreement
nor any provision hereof may be waived, amended or modified except pursuant to
an agreement or agreements in writing entered into by the Borrower and the
Required Lenders or by the Borrower and the Administrative Agent with the
consent of the Required Lenders; provided that no such agreement shall
(i) increase or reduce (other than a ratable decrease) the Commitment of any
Lender or subject any Lender to any additional obligation hereunder without the
written consent of such Lender, (ii) reduce the principal amount of any Loan or
reduce the rate of interest thereon (other than the rate of interest set forth
in Section 2.10(c)), or reduce any fees payable hereunder, without the
written consent of each Lender, (iii), except as permitted in Section 2.17
and Section 2.18, postpone the scheduled date of payment of the
principal amount of any Loan, or any interest thereon, or any fees payable
hereunder, or reduce the amount of, waive or excuse any such payment, or
postpone the scheduled date of expiration of any Commitment, without the
written consent of each Lender, (iv) change Section 2.15(b) or (c)
in a manner that would alter the pro rata sharing of payments required thereby,
without the written consent of each Lender, or (v) change any of the provisions
of this Section or the definition of “Required Lenders” or any other provision
hereof specifying the number or percentage of Lenders required to waive, amend
or modify any rights hereunder or make any determination or grant any consent
hereunder, without the written consent of each Lender; provided  further
that no such agreement shall amend, modify or otherwise affect the rights or
duties of the Administrative Agent hereunder without the prior written consent
of the Administrative Agent.

SECTION
9.03.  Expenses; Indemnity; Damage
Waiver.

(a)           The Borrower shall pay
(i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates, including the reasonable fees, charges
and disbursements of counsel for the Administrative Agent, in connection with (x)
the syndication of the credit facilities provided for herein and the
preparation and administration of this Agreement and (y) any amendments,
modifications or waivers of the provisions hereof (whether or not the Transactions
or any transactions contemplated thereby shall be consummated), provided that
the fees payable to the counsel for the Administrative Agent pursuant to this
subclause (i) shall not exceed the amount specified in the Mandate Letter and (ii)
all out-of-pocket expenses incurred by the Administrative Agent or any Lender,
including the fees, charges and disbursements of any counsel for the
Administrative Agent or any Lender, in connection with the enforcement or
protection of its rights in connection with this Agreement, including its
rights under this Section, or in connection with the Loans made, including all
such out-of-pocket expenses incurred during  any workout, restructuring or negotiations in
respect of such Loans.

(b)           The Borrower shall
indemnify the Administrative Agent and each Lender, and each Related Party of
any of the foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims, 

 45
 

damages, liabilities and related expenses,
including the fees, charges and disbursements of any counsel for any
Indemnitee, incurred by or asserted against any Indemnitee arising out of, in
connection with, or as a result of (i) the execution or delivery of this
Agreement or any agreement or instrument contemplated hereby, the performance
by the parties hereto of their respective obligations hereunder or the
consummation of the Transactions, (ii) any Loan or the use of the proceeds
therefrom, (iii) any actual or alleged presence or release of Hazardous
Materials on or from any property owned or operated by the Borrower or any of
its Subsidiaries, or any Environmental Liability related in any way to the
Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory and regardless of whether
any Indemnitee is a party thereto; provided that such indemnity shall
not, as to any Indemnitee, be available to the extent that such losses, claims,
damages, liabilities or related expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Indemnitee.

(c)           To the extent that the
Borrower fails to pay any amount required to be paid by it to the
Administrative Agent under paragraph (a) or (b) of this Section, each Lender
severally agrees to pay to the Administrative Agent such Lender’s Applicable
Percentage (determined as of the time that the applicable unreimbursed expense
or indemnity payment is sought) of such unpaid amount; provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the
Administrative Agent in its capacity as such.

(d)           To the extent permitted
by applicable law, the Borrower shall not assert, and hereby waives, any claim
against any Indemnitee, 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 or any
agreement or instrument contemplated hereby, any Transaction or any Loan or the
use of the proceeds thereof.

(e)           All amounts due under
this Section shall be payable not later than ten (10) Business Days after
written demand therefor.

SECTION
9.04.  Successors and Assigns.

(a)           The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby, except that (i)
the Borrower may not assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender (and any
attempted assignment or transfer by the Borrower without such consent shall be
null and void) and (ii) no Lender may assign or otherwise transfer its rights
or obligations hereunder except in accordance with this Section.  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby, Participants
(to the extent provided in paragraph (c) of this Section) and, to the extent
expressly contemplated hereby, the Related Parties of each of the
Administrative Agent and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

 46
 

(b)           (i)  Subject to the conditions set forth in
paragraph (b)(ii) below, any Lender may assign to one or more Eligible Assignees
all or a portion of its rights and obligations under this Agreement (including
all or a portion of its Commitment and the Loans at the time owing to it) with
the prior written consent (such consent not to be unreasonably withheld or
delayed) of:

(A)          the Borrower, provided that no consent of the
Borrower shall be required for an assignment to a Lender, an Affiliate of a
Lender, an Approved Fund or, if an Event of Default has occurred and is
continuing, any other assignee;

(B)           the Administrative Agent, provided that no
consent of the Administrative Agent shall be required for an assignment of any
Commitment to an assignee that is a Lender with a Commitment immediately prior
to giving effect to such assignment; and

(ii)           Assignments shall be
subject to the following additional conditions:

(A)          except in the case of an assignment to a
Lender or an Affiliate of a Lender or an assignment of the entire remaining amount
of the assigning Lender’s Commitment or Loans of any Type, the amount of the
Commitment or Loans of the assigning Lender subject to each such assignment
(determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to the Administrative Agent) shall not be less than
$5,000,000 unless each of the Borrower and the Administrative Agent otherwise
consent, provided that no such consent of the Borrower shall be required if an
Event of Default has occurred and is continuing;

(B)           each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement;

(C)           the parties to each assignment shall execute
and deliver to the Administrative Agent an Assignment and Assumption, together
with a processing and recordation fee of $3,500; and

(D)          the assignee, if it shall not be a Lender,
shall deliver to the Administrative Agent an Administrative Questionnaire.

For the purposes of this Section
9.04(b), the terms “Approved Fund” and “Eligible Assignee”
have the following respective meanings:

“Approved Fund”
means any Person (other than a natural person) that is engaged in making,
purchasing, holding or investing in bank loans and similar extensions of credit
in the ordinary course of its business and that is administered or managed by
(a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of
an entity that administers or manages a Lender.

“Eligible Assignee”
means any of (a) any Lender or Affiliate thereof, (b) a commercial bank having
total assets in excess of $5,000,000,000, (c) the central bank of any 

 47
 

country which is a
member of the Organization for Economic Cooperation and Development and (d) a
finance company or other financial institution, which is regularly engaged in
making, purchasing or investing in loans and having total assets in excess of
$500,000,000, reasonably acceptable to the Administrative Agent.

(iii)          Subject to acceptance
and recording thereof pursuant to paragraph (b)(iv) of this Section, from
and after the effective date specified in each Assignment and Assumption the
assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of
a Lender under this Agreement, and the assigning Lender thereunder shall, to
the extent of the interest assigned by such Assignment and Assumption, be
released from its obligations under this Agreement (and, in the case of an
Assignment and Assumption covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto
but shall continue to be entitled to the benefits of Sections 2.12,
2.13, 2.14 and 9.03). 
Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this Section 9.04 shall be
treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph (c) of
this Section.

(iv)          The Administrative
Agent, acting for this purpose as an agent of the Borrower, shall maintain at
one of its offices a copy of each Assignment and Assumption delivered to it and
a register for the recordation of the names and addresses of the Lenders, and
the Commitment of, and principal amount of the Loans owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. 
The Register shall be available for inspection by the Borrower and any
Lender, at any reasonable time and from time to time upon reasonable prior
notice.

(v)           Upon its receipt of a
duly completed Assignment and Assumption executed by an assigning Lender and an
assignee, the assignee’s completed Administrative Questionnaire (unless the
assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in paragraph (b) of this Section and any written consent
to such assignment required by paragraph (b) of this Section, the Administrative
Agent shall accept such Assignment and Assumption and record the information
contained therein in the Register.  No
assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph.

(c)           (i)  Any Lender may, without the consent of the
Borrower and the Administrative Agent, sell participations to one or more Eligible
Assignees (a “Participant”) in all or a portion of such Lender’s rights
and obligations under this Agreement (including all or a portion of its
Commitment and the Loans owing to it); provided that (A) such
Lender’s obligations under this Agreement shall remain unchanged, (B) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) the Borrower, the Administrative
Agent and the other Lenders shall continue to deal solely and directly with
such Lender in connection with such Lender’s rights and obligations under this
Agreement.  Any agreement or instrument
pursuant to which a Lender sells such a participation 

 48
 

shall provide that such Lender shall retain
the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that
such agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver
described in the first proviso to Section 9.02(b) that affects such
Participant.  Subject to paragraph
(c)(ii) of this Section, the Borrower agrees that each Participant shall be
entitled to the benefits of Sections 2.12, 2.13 and 2.14
to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 9.08
as though it were a Lender, provided such Participant agrees to be subject to Section
2.15(c) as though it were a Lender.

(ii)           A Participant shall not
be entitled to receive any greater payment under Section 2.12 or 2.14
than the applicable Lender would have been entitled to receive with respect to
the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrower’s prior written
consent.  A Participant that would be a
Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.14
unless the Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of the Borrower, to comply with Section
2.14(e) as though it were a Lender.

(d)           Any Lender may at any
time pledge or assign a security interest in all or any portion of its rights
under this Agreement to secure obligations of such Lender, including without
limitation any pledge or assignment to secure obligations to a Federal Reserve
Bank, and this Section shall not apply to any such pledge or assignment of a
security interest; provided that no such pledge or assignment of a
security interest shall release a Lender from any of its obligations hereunder
or substitute any such pledgee or assignee for such Lender as a party hereto.

SECTION
9.05.  Survival.  All covenants, agreements, representations
and warranties made by the Borrower herein and in the certificates or other
instruments  delivered in connection with
or pursuant to this Agreement shall be considered to have been relied upon by
the other parties hereto and shall survive the execution and delivery of this
Agreement and the making of any Loans, regardless of any investigation made by
any such other party or on its behalf and notwithstanding that the
Administrative Agent or any Lender may have had notice or knowledge of any
Default or incorrect representation or warranty at the time any credit is
extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any fee or any other amount
payable under this Agreement is outstanding and unpaid and so long as the
Commitments have not expired or terminated. 
The provisions of Sections 2.12, 2.13, 2.14 and 9.03
and Article VIII shall survive and remain in full force and effect
regardless of the consummation of the Transactions, the repayment of the Loans,
the expiration or termination of the Commitments or the termination of this
Agreement or any provision hereof.

SECTION
9.06.  Counterparts; Integration;
Effectiveness.  This Agreement may be
executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which
when taken together shall constitute a single contract.  This Agreement and any separate letter
agreements with respect to fees payable to the Administrative Agent constitute
the entire contract among the parties relating to the subject 

 49
 

matter hereof and supersede any and all
previous agreements and understandings, oral or written, relating to the
subject matter hereof.  Except as
provided in Section 4.01, this Agreement shall become effective when it
shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof which, when taken
together, bear the signatures of each of the other parties hereto, and
thereafter shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. 
Delivery of an executed counterpart of a signature page of this
Agreement by telecopy shall be effective as delivery of a manually executed
counterpart of this Agreement.

SECTION
9.07.  Severability.  Any provision of this Agreement held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

SECTION
9.08.  Right of Setoff.  If an Event of Default shall have occurred
and be continuing, each Lender and each of its Affiliates is hereby authorized
at any time and from time to time, to the fullest extent permitted by law, to
set off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other obligations at any time owing
by such Lender or Affiliate to or for the credit or the account of the Borrower
against any of and all the obligations of the Borrower now or hereafter existing
under this Agreement held by such Lender, irrespective of whether or not such
Lender shall have made any demand under this Agreement and although such
obligations may be unmatured.  The rights
of each Lender under this Section are in addition to other rights and remedies
(including other rights of setoff) which such Lender may have.

SECTION
9.09.  Governing Law; Jurisdiction;
Consent to Service of Process.

(a)           This Agreement shall be
construed in accordance with and governed by the law of the State of New York.

(b)           The Borrower hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of the Supreme Court of the State of New York sitting
in New York County and of the United States District Court of the Southern
District of New York, and any appellate court from any thereof, in any action
or proceeding arising out of or relating to this Agreement, or for recognition
or enforcement of any judgment, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in such New York State
or, to the extent permitted by law, in such Federal court.  Each of the parties hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.  Nothing in this
Agreement shall affect any right that the Administrative Agent or any Lender
may otherwise have to bring any action or proceeding relating to this Agreement
against the Borrower or its properties in the courts of any jurisdiction.

(c)           The Borrower hereby
irrevocably and unconditionally waives, to the fullest extent it may legally
and effectively do so, any objection which it may now or hereafter 

 50
 

have to the laying of venue of any suit,
action or proceeding arising out of or relating to this Agreement in any court
referred to in paragraph (b) of this Section. 
Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

(d)           Each party to this
Agreement irrevocably consents to service of process in the manner provided for
notices in Section 9.01. 
Nothing in this Agreement will affect the right of any party to this
Agreement to serve process in any other manner permitted by law.

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

SECTION
9.11.  Headings.  Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of
this Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

SECTION
9.12.  Confidentiality.  Each of the Administrative Agent and the
Lenders agrees to maintain the confidentiality of the Information (as defined
below), except that Information may be disclosed (a) to its and its
Affiliates’ directors, officers, employees and agents, including accountants,
legal counsel and other advisors (it being understood that the Persons to whom
such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to
the extent requested by any regulatory authority, (c) to the extent
required by applicable laws or regulations or by any subpoena or similar legal
process, (d) to any other party to this Agreement, (e) in connection with the
exercise of any remedies hereunder or any suit, action or proceeding relating
to this Agreement or the enforcement of rights hereunder, (f) subject to an
agreement containing provisions substantially the same as those of this
Section, to (i) any assignee of or Participant in, or any prospective assignee
of or Participant in, any of its rights or obligations under this Agreement or
(ii)  any actual or prospective
counterparty (or its advisors) to any swap or derivative transaction relating
to the Borrower and its obligations, (g) with the consent of the Borrower or
(h) to the extent such Information (i) becomes publicly available
other than as a result of a breach of this Section or (ii) becomes
available to the Administrative Agent or any Lender on a non-confidential basis
from a source other than the Borrower. 
For purposes of this Section, “Information” means all information
received from the Borrower relating to the Borrower or its business, other than
any such information that is available to the Administrative Agent or any
Lender on a nonconfidential basis prior to disclosure by the Borrower; provided
that, in the case of information received from the Borrower after the date
hereof, such 

 51
 

information shall be deemed confidential
unless identified at the time of delivery as not confidential.  Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered
to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

SECTION
9.13.  Interest Rate Limitation.  Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together
with all fees, charges and other amounts which are treated as interest on such
Loan under applicable law (collectively the “Charges”), shall exceed the
maximum lawful rate (the “Maximum Rate”) which may be contracted for,
charged, taken, received or reserved by the Lender holding such Loan in
accordance with applicable law, the rate of interest payable in respect of such
Loan hereunder, together with all Charges payable in respect thereof, shall be
limited to the Maximum Rate and, to the extent lawful, the interest and Charges
that would have been payable in respect of such Loan but were not payable as a
result of the operation of this Section shall be cumulated and the interest and
Charges payable to such Lender in respect of other Loans or periods shall be
increased (but not above the Maximum Rate therefor) until such cumulated
amount, together with interest thereon at the Federal Funds Effective Rate to
the date of repayment, shall have been received by such Lender.

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

 52

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

	
  

  	
  CAPITAL TRUST, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Geoffrey G. Jervis

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Geoffrey G. Jervis

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
						

 

	
  

  	
  WESTLB AG, NEW YORK BRANCH,

  
	
   

  	
  as a Lender and the Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Lillian Tung Lum

  	
   

  
	
   

  	
   

  	
  Name:  Lillian
  Tung Lum

  
	
   

  	
   

  	
  Title:  Executive
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Pui Chow

  	
   

  
	
   

  	
   

  	
  Name: Pui Chow

  
	
   

  	
   

  	
  Title: Director

  
							

 

EXHIBIT A

ASSIGNMENT AND
ASSUMPTION

This Assignment and
Assumption (the “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein
shall have the meanings given to them in the Credit Agreement identified below
(as amended, the “Credit Agreement”), receipt of a copy of which is
hereby acknowledged by the Assignee.  The
Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby
agreed to and incorporated herein by reference and made a part of this
Assignment and Assumption as if set forth herein in full.

For an agreed
consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the
Assignor, subject to and in accordance with the Standard Terms and Conditions
and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all of the Assignor’s rights and
obligations in its capacity as a Lender under the Credit Agreement and any
other documents or instruments delivered pursuant thereto to the extent related
to the amount and percentage interest identified below of all of such
outstanding rights and obligations of the Assignor under the respective
facilities identified below and (ii) to the extent permitted to be assigned
under applicable law, all claims, suits, causes of action and any other right
of the Assignor (in its capacity as a Lender) against any Person, whether known
or unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions
governed thereby or in any way based on or related to any of the foregoing,
including contract claims, tort claims, malpractice claims, statutory claims
and all other claims at law or in equity related to the rights and obligations
sold and assigned pursuant to clause (i) above (the rights and obligations sold
and assigned pursuant to clauses (i) and (ii) above being referred to herein
collectively as the “Assigned Interest”).  Such sale and assignment is without recourse
to the Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by the Assignor.

	
  1.

  	
   

  	
  Assignor:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Assignee:

  	
   

  	
  [and is an Affiliate/Approved Fund of [identify Lender]]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Borrower(s):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Administrative Agent:

  	
   

  	
                                               ,
  as the administrative agent under the Credit Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Credit Agreement:

  	
   

  	
  [The  [amount]  Credit
  Agreement dated as
  of                 
  among [name of Borrower(s)], the Lenders
  parties thereto, [name of Administrative
  Agent], as Administrative Agent, and the other

  

 

 

	
  

  	
   

  	
   

  	
   

  	
  agents parties thereto]

  

 

6.              Assigned Interest:

	
  Aggregate
  Amount of 

  Commitment/Loans 

  for all Lenders

  	
   

  	
  Amount of 

  Commitment/Loans 

  Assigned

  	
   

  	
  Percentage Assigned 

  of 

  Commitment/Loans(1)

  	
   

  
	
  $

  	
   

  	
  $

  	
   

  	
   

  	
  %

  
	
  $

  	
   

  	
  $

  	
   

  	
   

  	
  %

  
	
  $

  	
   

  	
  $

  	
   

  	
   

  	
  %

  

 

Effective Date:                   
      , 20      [TO BE
INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF
RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in
this Assignment and Assumption are hereby agreed to:

	
   

  	
  ASSIGNOR

  
	
   

  	
   

  
	
   

  	
  [NAME OF
  ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ASSIGNEE

  
	
   

  	
   

  
	
   

  	
  [NAME OF
  ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

(1)     Set forth, to at least 9 decimals, as a
percentage of the Commitment/Loans of all Lenders thereunder.

 

	
  Consented to and Accepted:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [NAME OF
  ADMINISTRATIVE AGENT], as

  	
   

  	
   

  
	
   Administrative
  Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Consented to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [NAME OF
  RELEVANT PARTY]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

ANNEX 1

STANDARD TERMS AND
CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1.             Representations
and Warranties.

1.1           Assignor.  The Assignor (a) represents and warrants that
(i) it is the legal and beneficial owner of the Assigned Interest, (ii) the
Assigned Interest is free and clear of any lien, encumbrance or other adverse
claim and (iii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Assumption and to
consummate the transactions contemplated hereby; and (b) assumes no
responsibility with respect to (i) any statements, warranties or
representations made in or in connection with the Credit Agreement, (ii) the
execution, legality, validity, enforceability, genuineness, sufficiency or
value of the Credit Agreement, (iii) the financial condition of the Borrower,
any of its Subsidiaries or Affiliates or any other Person obligated in respect
of the Credit Agreement or (iv) the performance or observance by the Borrower,
any of its Subsidiaries or Affiliates or any other Person of any of their respective
obligations under the Credit Agreement.

1.2.          Assignee.  The Assignee (a) represents and warrants that
(i) it has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it satisfies the requirements, if any, specified in the Credit
Agreement that are required to be satisfied by it in order to acquire the
Assigned Interest and become a Lender, (iii) from and after the Effective Date,
it shall be bound by the provisions of the Credit Agreement as a Lender
thereunder and, to the extent of the Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it has received a copy of the Credit
Agreement, together with copies of the most recent financial statements
delivered pursuant to Section 5.01 thereof, as applicable, and such
other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment and Assumption and
to purchase the Assigned Interest on the basis of which it has made such
analysis and decision independently and without reliance on the Administrative
Agent or any other Lender, and (v) if it is a Foreign Lender, attached to the
Assignment and Assumption is any documentation required to be delivered by it
pursuant to the terms of the Credit Agreement, duly completed and executed by
the Assignee; and (b) agrees that (i) it will, independently and without
reliance on the Administrative Agent, the Assignor or any other Lender, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Credit Agreement, and (ii) it will perform in accordance with their
terms all of the obligations which by the terms of the Credit Agreement are
required to be performed by it as a Lender.

2.             Payments.  From and after the Effective Date, the
Administrative Agent shall make all payments in respect of the Assigned
Interest (including payments of principal, interest, fees and other amounts) to
the Assignor for amounts which have accrued to but excluding the Effective Date
and to the Assignee for amounts which have accrued from and after the Effective
Date.

3.             General Provisions.  This Assignment and Assumption shall be
binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns.  This
Assignment and Assumption may be executed in any number of counterparts, which
together shall constitute one instrument. 
Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a manually
executed counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be
governed by, and construed in accordance with, the law of the State of New
York.

 2Exhibit
10.5

AMENDMENT NO. 5 TO MASTER
REPURCHASE AGREEMENT

THIS AMENDMENT NO. 5 TO MASTER REPURCHASE
AGREEMENT (this “Amendment”), made as of the 14th day of February, 2007 by CAPITAL TRUST, INC., a
Maryland corporation, CT RE CDO 2004-1 SUB, LLC,
a Delaware limited liability company, and CT RE  CDO 2005-1 SUB, LLC, a Delaware limited liability company (collectively, “Seller”), and MORGAN STANLEY BANK, a Utah industrial bank (“Buyer”).

WITNESSETH:

WHEREAS, Seller and Buyer
previously entered into that Master Repurchase Agreement dated as of July 29,
2005, as amended by that certain Amendment No. 1 to Master Repurchase Agreement
dated as of November 4, 2005, as amended by that certain Amendment No. 2 to
Master Repurchase Agreement dated as of November 16, 2005, as amended by that
certain Amendment No. 3 to Master Repurchase Agreement dated as of April 6,
2006, as amended by that certain Amendment No. 4 to Master Repurchase Agreement
dated as of April 26, 2006, and as amended by that certain letter from Seller dated
June 23, 2006 (as amended, the “Master Repurchase Agreement”); and

WHEREAS, the parties to the
Master Repurchase Agreement wish to modify certain terms and provisions
thereof:

NOW, THEREFORE, the parties
hereto agree as follows:

1.     Amendments to Master Repurchase
Agreement.  The Master Repurchase
Agreement is hereby amended as follows:

(a)           The definition of “Maximum
Purchase Amount” in Section 2.01 is hereby deleted in its entirety and the
following is inserted in lieu thereof:

“Maximum Purchase
Amount” shall mean Three Hundred Million Dollars ($300,000,000).

(b)           The definition of “Eurodollar Rate
Spread” in Section 2.01 is hereby deleted in its entirety and the following
is inserted in lieu thereof:

“Eurodollar Rate
Spread” means, with respect to each Transaction Asset, the applicable
Eurodollar Rate Spread set forth below opposite such Purchase Rate for the
applicable Transaction Asset type, or such other Eurodollar Rate Spread as may
be mutually agreed to by Seller and Buyer; provided,  however,
that if the “first dollar” and “last dollar” of the Indebtedness represented by
such Transaction Asset would dictate different Eurodollar Rate Spreads (any
such Transaction Asset shall, for purposes of this Amendment, be referred to as
a “Blended Rate Asset”), then the Eurodollar Rate Spread for such a
Blended Rate Asset shall be the weighted average of the Eurodollar Rate Spreads
attributable to each dollar of such Blended Rate Asset, as determined in the
sole good faith of Buyer.  

 

	
  Transaction Asset Type

  	
   

  	
  Purchase Rate

  	
   

  	
  Eurodollar Rate Spread

  (expressed as percentage points

  per annum and as basis points)

  
	
  Whole Loans

  	
   

  	
  TBD by MS on a
  case by case basis

  	
   

  	
  TBD by MS on a
  case by case basis

  	
   

  	
  TBD by MS on a
  case by case basis

  
	
  B Notes, Preferred
  Equity Interests and Mezzanine Loans and participation interests in any of
  the foregoing*

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (greater than 50%, up to 55% LTV)

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  
	
  (greater than 55%, up to 60% LTV)

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  
	
  (greater than 60%, up to 70% LTV)

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  
	
  (greater than 70%, up to 75% LTV)

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  
	
  (greater than 75%, up to 80% LTV)

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  
	
  (greater than 80%, up to 85% LTV)

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  
	
  (greater than 85%, up to 90% LTV)

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  

 

	
  CMBS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rating:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BBB

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  
	
  BBB-

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  
	
  BB+

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  
	
  BB

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  
	
  BB-

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  
	
  B+

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  
	
  B

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  
	
  B-

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  
	
  Unrated

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  
	
  Class F Notes

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  
	
  Class G Notes

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  
	
  Class H Notes

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  
	
  Other CDO Notes

  	
   

  	
  [****]

  	
   

  	
  [****]

  	
   

  	
  [****]

  

*                 B Notes, Preferred Equity Interests and
Mezzanine Loans and participations in any of the foregoing, in each case
relating to hotel and other hospitality properties shall have a maximum LTV as
determined by the Buyer in its sole discretion.

(c)           The definition of “Purchase Rate”
in Section 2.01 is hereby deleted in its entirety and the following is inserted
in lieu thereof:

“Purchase
Rate” means, for any Eligible Transaction Asset, the ratio, expressed as a
percentage, set forth opposite the collateral type in the chart provided in the
definition of Eurodollar Rate Spread or as otherwise defined or limited herein;
provided, however, that if the “first dollar” and “last dollar”
of the Indebtedness represented by such Blended Rate Asset would permit
different Purchase Rates, then the Purchase Rate for such Blended Rate Asset
shall be the weighted average of the Purchase Rates attributable to each dollar
of such Blended Rate Asset, as determined in the sole good faith of Buyer.  Exhibit A attached hereto illustrates
a hypothetical example of the application of the foregoing calculations.  Such example is for illustration purposes
only and does not purport to describe every circumstance in which the foregoing
might be applied.

(d)           The definition of “Maximum
Purchase Rate” in Section 2.01 is hereby deleted in its entirety and the
following is inserted in lieu thereof:

**** Material omitted
pursuant to a request for confidential treatment under Rule 24b-2 of the
Exchange Act of 1934.  Material filed
separately with the Securities and Exchange Commission.

 2
 

“Maximum
Purchase Rate” shall mean, as to Eligible Transaction Asset, the maximum
Purchase Rate that shall be determined by Buyer in Buyer’s sole and absolute
discretion; provided that, with respect to the specific categories of
Eligible Transaction Assets referred to in the definition of Eurodollar Rate
Spread, the Maximum Purchase Rate shall not exceed the respective Purchase
Rates set forth in such definition or the weighted average thereof with respect
to a Blended Rate Asset, as determined in the sole good faith of Buyer.

(e)           The definition of “Preliminary Due
Diligence Package” in Section 2.01 is hereby amended by adding the
following thereto:

“(xvi)      requested Purchase Rate (which shall not
exceed the Maximum Purchase Rate).”

(f)            Section 12.20 is hereby amended by
adding the following sentence at the conclusion thereof:

“Buyer and Seller agree that in connection with the
increase of the Maximum Purchase Amount by One Hundred Million and 00/100
Dollars ($100,000,000.00) as of the date hereof pursuant to this Amendment,
Seller shall pay to Buyer a Structuring Fee (the “Increased Structuring Fee”)
in the amount of [****].”

(g)           The form of Confirmation attached as
Exhibit A to the Master Repurchase Agreement is hereby deleted and the form
attached hereto as Exhibit B substituted in lieu thereof.

2.     Representations and Warranties.  Seller hereby makes to Buyer the
representations and warranties set forth in Section 7 of the Master Repurchase
Agreement, as amended hereby.

3.     Binding Effect; No Partnership;
Counterparts.  The provisions of the
Master Repurchase Agreement, as amended hereby, shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and
permitted assigns.  Nothing herein
contained shall be deemed or construed to create a partnership or joint venture
between any of the parties hereto.  For
the purpose of facilitating the execution of this Amendment as herein provided,
this Amendment may be executed simultaneously in any number of counterparts,
each of which shall be deemed to be an original, and such counterparts when
taken together shall constitute but one and the same instrument.

4.     Further Agreements.   Seller agrees to execute and deliver such
additional documents, instruments or agreements as may be reasonably requested
by Buyer and as may be necessary or appropriate from time to time to effectuate
the purposes of this Amendment.

5.     Governing Law.  This Amendment shall be governed by the laws
of the State of New York.

6.     Continuing Effect.  Except as modified by this Amendment, all
terms of the Master Repurchase Agreement shall remain in full force and effect.

7.     Conditions
Precedent.

It is a condition precedent to the effectiveness of
this Amendment that each of the following shall have occurred:

(a)   each party hereto shall have executed and
delivered this Amendment;

**** Material omitted
pursuant to a request for confidential treatment under Rule 24b-2 of the
Exchange Act of 1934.  Material filed
separately with the Securities and Exchange Commission.

 3
 

(b)   Buyer shall have received from Seller an
officer’s certificate dated the date hereof in the form required under Section
6.02(b) of the Master Repurchase Agreement;

(c)   Buyer shall have received the Increased
Structuring Fee from Seller; and

(d)   Buyer shall have received a legal opinion
from counsel to Seller dated the date hereof as to the enforceability of this
Amendment and as to Seller’s authority to execute, deliver and perform its
obligations under the Master Repurchase Agreement as amended hereby.  Such opinion shall be addressed to Buyer and
its successors and assigns, and shall be in a form and substance reasonably
satisfactory to Buyer.

[The remainder of this page has been intentionally
left blank]

 4
 

 

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

  
	
   

  
	
  SELLER:

  
	
   

  
	
  CAPITAL TRUST, INC.,

  
	
  as a Seller

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Geoffrey G. Jervis

  	
   

  
	
   

  	
  Name: Geoffrey G. Jervis

  
	
   

  	
  Title: Chief Financial Officer

  
	
   

  
	
   

  
	
  CT RE CDO 2004-1 SUB, LLC,

  
	
  as a Seller

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Geoffrey G. Jervis

  	
   

  
	
   

  	
  Name: Geoffrey G. Jervis

  
	
   

  	
  Title: Chief Financial Officer

  
	
   

  
	
   

  
	
   

  
	
  CT RE CDO 2005-1 SUB, LLC,

  
	
  as a Seller

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Geoffrey G. Jervis

  	
   

  
	
   

  	
  Name: Geoffrey G. Jervis

  
	
   

  	
  Title: Chief Financial Officer

  
				

 

BUYER:

MORGAN
STANLEY BANK,

a Utah industrial bank

	
  By:

  	
  /s/Deborah
  Goodman

  	
   

  
	
  Name: Deborah
  Goodman

  
	
  Title: Vice
  President

  

 

 

 5

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