Document:

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                                                                     Exhibit 4.2

                           --------------------------

                          REGISTRATION RIGHTS AGREEMENT

                           DATED AS OF AUGUST 25, 2004

                                  BY AND AMONG

                                   MGM MIRAGE

                                       AND

         THE SUBSIDIARY GUARANTORS LISTED ON THE SIGNATURE PAGES HEREOF,

                                ON THE ONE HAND,

                                       AND

                         BANC OF AMERICA SECURITIES LLC

                                       AND

                             THE INITIAL PURCHASERS,

                                ON THE OTHER HAND

                              ---------------------

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                          REGISTRATION RIGHTS AGREEMENT

      This REGISTRATION RIGHTS AGREEMENT (the "AGREEMENT") is made and entered
into on August 25, 2004 (the "CLOSING DATE"), by and among MGM MIRAGE, a
Delaware corporation (the "COMPANY") and the subsidiary guarantors listed on the
signature page of this Agreement (the "SUBSIDIARY GUARANTORS"), on the one hand,
and Banc of America Securities LLC on its own behalf and as representative of
and each of the other Initial Purchasers named in Schedule A hereto
(collectively, the "INITIAL PURCHASERS"), on the other hand.

      This Agreement is made pursuant to that certain Purchase Agreement, dated
August 11, 2004 among the Company, the Subsidiary Guarantors and the Initial
Purchasers (the "PURCHASE AGREEMENT"), which provides for the sale by the
Company to the Initial Purchasers of an aggregate of $550,000,000 in principal
amount of the Company's 6 3/4% Senior Notes due 2012 (the "NOTES"), which are
guaranteed by the Subsidiary Guarantors. In order to induce the Initial
Purchasers to enter into the Purchase Agreement, the Company and the Subsidiary
Guarantors have agreed to provide to the Initial Purchasers and their direct and
indirect transferees the registration rights set forth in this Agreement. The
execution of this Agreement is a condition to the closing under the Purchase
Agreement.

      NOW, THEREFORE, in consideration of the foregoing premises and the mutual
promises contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are acknowledged, the parties hereto covenant
and agree as follows:

      1. DEFINITIONS.

            As used in this Agreement, the following capitalized defined terms
shall have the following meanings:

      "1933 ACT" shall mean the Securities Act of 1933, as amended from time to
time.

      "1934 ACT" shall mean the Securities Exchange Act of 1934, as amended from
time to time.

      "ADDITIONAL INTEREST" shall have the meaning set forth in Section 2.5
hereof.

      "BROKER PROSPECTUS PERIOD" shall mean a period of at least 365 days after
the consummation of the Exchange Offer during which the Company shall make a
prospectus meeting the requirements of the 1933 Act available to all
Participating Broker-Dealers for use in connection with any resale of any
Exchange Notes acquired in the Exchange Offer.

      "CLOSING" shall mean the Closing Time as defined in the Purchase
Agreement.

      "COMPANY" shall have the meaning set forth in the preamble and shall also
include the Company's successors.

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      "DEPOSITARY" shall mean The Depository Trust Company, or any other
depositary appointed by the Company, provided, however, that such depositary
must have an address in the Borough of Manhattan, in the City of New York.

      "EXCHANGE NOTES" shall mean the 6 3/4% Senior Notes due 2012 to be issued
by the Company and guaranteed by the Subsidiary Guarantors under the Indenture
containing terms identical to the Notes in all material respects (except for
references to certain interest rate provisions, restrictions on transfers and
restrictive legends), to be offered to Holders of Notes in exchange for Transfer
Restricted Notes pursuant to the Exchange Offer.

      "EXCHANGE OFFER" shall mean the exchange offer by the Company and the
Subsidiary Guarantors of Exchange Notes for Transfer Restricted Notes pursuant
to Section 2.1 hereof.

      "EXCHANGE OFFER REGISTRATION" shall mean a registration under the 1933 Act
effected pursuant to Section 2.1 hereof.

      "EXCHANGE OFFER REGISTRATION STATEMENT" shall mean an exchange offer
registration statement on Form S-4 (or, if applicable, on another appropriate
form), and all amendments and supplements to such registration statement,
including the Prospectus contained therein, all exhibits thereto and all
documents incorporated by reference therein.

      "EXCHANGE PERIOD" shall have the meaning set forth in Section 2.1 hereof.

      "HOLDER" shall mean an Initial Purchaser, for so long as it owns any
Transfer Restricted Notes, and each of its successors, assigns and direct and
indirect transferees who become registered owners of Transfer Restricted Notes
under the Indenture and each Participating Broker-Dealer that holds Exchange
Notes for so long as such Participating Broker-Dealer is required to deliver a
prospectus meeting the requirements of the 1933 Act in connection with any
resale of such Exchange Notes.

      "INDENTURE" shall mean the Indenture relating to the Notes, dated as of
August 25, 2004, among the Company, the Subsidiary Guarantors, and U.S. Bank
National Association, as trustee, as the same may be amended, supplemented,
waived or otherwise modified from time to time in accordance with the terms
thereof.

      INITIAL PURCHASER" or "INITIAL PURCHASERS" shall have the meaning set
forth in the preamble.

      "MAJORITY HOLDERS" shall mean the Holders of a majority of the aggregate
principal amount of Outstanding (as defined in the Indenture) Transfer
Restricted Notes; provided that whenever the consent or approval of Holders of a
specified percentage of Transfer Restricted Notes is required hereunder,
Transfer Restricted Notes held by the Company and other obligors on the Notes or
any Affiliate (as defined in the Indenture) of the Company or any Subsidiary
Guarantor shall be disregarded in determining whether such consent or approval
was given by the Holders of such required percentage amount.

      "NOTES" shall have the meaning set forth in the preamble hereof.

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      "PARTICIPATING BROKER-DEALER" shall mean any of the Initial Purchasers and
any other broker-dealer which makes a market in the Notes and exchanges Transfer
Restricted Notes in the Exchange Offer for Exchange Notes.

      "PERSON" shall mean an individual, partnership (general or limited),
corporation, limited liability company, trust or unincorporated organization, or
a government or agency or political subdivision thereof.

      "PRIVATE EXCHANGE" shall have the meaning set forth in Section 2.1 hereof.

      "PRIVATE EXCHANGE NOTES" shall have the meaning set forth in Section 2.1
hereof.

      "PROSPECTUS" shall mean the prospectus included in a Registration
Statement, including any preliminary prospectus, and any such prospectus as
amended or supplemented by any prospectus supplement, including any such
prospectus supplement with respect to the terms of the offering of any portion
of the Transfer Restricted Notes covered by a Shelf Registration Statement, and
by all other amendments and supplements to a prospectus, including post
effective amendments, and in each case including all material incorporated by
reference therein.

      "PURCHASE AGREEMENT" shall have the meaning set forth in the preamble.

      "REGISTRATION EXPENSES" shall mean any and all expenses incident to
performance of or compliance by the Company and the Subsidiary Guarantors with
this Agreement, including without limitation: (i) all SEC, stock exchange or
National Association of Securities Dealers, Inc. (the "NASD") registration and
filing fees, including, if applicable, the fees and expenses of any "qualified
independent underwriter' 'that is required to be retained by any holder of
Transfer Restricted Notes in accordance with the rules and regulations of the
NASD, (ii) all fees and expenses incurred in connection with compliance with
state securities or blue sky laws and compliance with the rules of the NASD
(including reasonable fees and disbursements of counsel for any underwriters or
Holders in connection with blue sky qualification of any of the Exchange Notes
or Transfer Restricted Notes and any filings with the NASD), (iii) all expenses
of any Persons in preparing or assisting in preparing, word processing, printing
and distributing any Registration Statement, any Prospectus, any amendments or
supplements thereto, any underwriting agreements, securities sales agreements
and other documents relating to the performance of and compliance with this
Agreement, (iv) all fees and expenses incurred in connection with the listing,
if any, of any of the Transfer Restricted Notes on any securities exchange or
exchanges, (v) all rating agency fees, (vi) the fees and disbursements of
counsel for the Company and the Subsidiary Guarantors and of the independent
public accountants of the Company and the Subsidiary Guarantors, including the
expenses of any special audits or "cold comfort" letters required by or incident
to such performance and compliance, (vii) the fees and expenses of the Trustee
(including the reasonable fees and disbursements of its counsel), and any escrow
agent or custodian, and (viii) any fees and disbursements of the underwriters
customarily required to be paid by issuers or sellers of securities and the fees
and expenses of any special experts retained by the Company and the Subsidiary
Guarantors in connection with any Registration Statement, but excluding
underwriting discounts and commissions and transfer taxes, if any, relating to
the sale or disposition of Transfer Restricted Notes by a Holder.
Notwithstanding the foregoing, except as specifically provided above, the
Company and the

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Subsidiary Guarantors shall not be responsible for the fees and expenses of the
Initial Purchasers in connection with the Exchange Offer, or the fees and
expenses of counsel to the Initial Purchasers in connection therewith.

      "REGISTRATION STATEMENT" shall mean any registration statement of the
Company which covers any of the Exchange Notes or Transfer Restricted Notes
pursuant to the provisions of this Agreement, and all amendments and supplements
to any such Registration Statement, including post-effective amendments, in each
case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

      "SEC" shall mean the Securities and Exchange Commission or any successor
agency or government body performing the functions currently performed by the
United States Securities and Exchange Commission.

      "SHELF REGISTRATION" shall mean a registration effected pursuant to
Section 2.2 hereof.

      "SHELF REGISTRATION STATEMENT" shall mean a "shelf" registration statement
of the Company pursuant to the provisions of Section 2.2 of this Agreement which
covers Transfer Restricted Notes or Private Exchange Notes on an appropriate
form under Rule 415 under the 1933 Act, or any similar rule that may be adopted
by the SEC, and all amendments and supplements to such registration statement,
including post-effective amendments, in each case including the Prospectus
contained therein, all exhibits thereto and all material incorporated by
reference therein.

      "TIA" shall have the meaning set forth in Section 2.1 hereof.

      "TRANSFER RESTRICTED NOTES" shall mean the Notes and, if issued, the
Private Exchange Notes; provided, however, that the Notes and, if issued, the
Private Exchange Notes, shall cease to be Transfer Restricted Notes when (i)
such Transfer Restricted Note has been exchanged by a person (other than a
Participating Broker-Dealer) for an Exchange Note in the Exchange Offer, (ii)
following the exchange by a Participating Broker-Dealer in the Exchange Offer of
a Transfer Restricted Note for an Exchange Note, the date on which such Exchange
Note is sold to a purchaser who received from such Participating Broker-Dealer
on or prior to the date of such sale a copy of the prospectus contained in the
Exchange Offer Registration Statement, as amended or supplemented, (iii) such
Transfer Restricted Note has been effectively registered under the 1933 Act and
disposed of in accordance with the Shelf Registration Statement, (iv) such
Transfer Restricted Note is eligible for distribution to the public pursuant to
Rule 144(k) (or any similar provision then in force, but not Rule 144A) under
the 1933 Act, or (v) such Transfer Restricted Note ceases to be outstanding.

      "TRUSTEE" shall mean the trustee with respect to the Notes under the
Indenture.

      2. REGISTRATION UNDER THE 1933 ACT.

            2.1 EXCHANGE OFFER. The Company and the Subsidiary Guarantors shall,
for the benefit of the Holders, at the Company's and Subsidiary Guarantors'
cost, (A) file the Exchange Offer Registration Statement with the SEC on or
prior to the 120th day following the Closing Date, which Exchange Offer
Registration Statement shall be on an appropriate form

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under the 1933 Act and shall relate to a proposed Exchange Offer and the
issuance and delivery to the Holders who so elect, in exchange for the Transfer
Restricted Notes (other than Private Exchange Notes), of a like principal amount
of Exchange Notes, (B) use their best efforts to have the Exchange Offer
Registration Statement declared effective by the SEC under the 1933 Act on or
prior to the 180th day following the Closing Date, (C) commence the Exchange
Offer promptly after the Exchange Offer Registration Statement is declared
effective, (D) keep the Exchange Offer open for acceptance for not less than 20
business days after notice thereof is mailed to Holders (or longer if required
by applicable law) (such period referred to herein as the "EXCHANGE PERIOD") and
consummate the Exchange Offer no later than 30 business days following the date
on which the Exchange Offer Registration Statement is declared effective by the
SEC, (E) use their best efforts to issue, promptly after the end of the Exchange
Period, Exchange Notes in exchange for all Notes that have been properly
tendered for exchange during the Exchange Period and (F) use their best efforts
to maintain the effectiveness of the Exchange Offer Registration Statement
during the Exchange Period and thereafter until such time as the Company has
issued Exchange Notes in exchange for all Transfer Restricted Notes that have
been properly tendered for exchange during the Exchange Period. The Exchange
Notes will be issued under the Indenture. Upon the effectiveness of the Exchange
Offer Registration Statement, the Company and the Subsidiary Guarantors shall
promptly commence the Exchange Offer, it being the objective of such Exchange
Offer to enable each Holder eligible and electing to exchange Transfer
Restricted Notes for Exchange Notes (assuming that such Holder makes certain
representations and warranties to the Company, including representations that
(a) it is not an affiliate of the Company within the meaning of Rule 405 under
the 1933 Act, (b) any Exchange Notes to be received by it will be acquired in
the ordinary course of its business, (c) if such Holder is not a broker-dealer,
that it is not engaged in, and does not intend to engage in, the distribution of
the Exchange Notes, (d) if such Holder is a broker-dealer that will receive
Exchange Notes for its own account in exchange for Transfer Restricted Notes
acquired as a result of market-making or other trading activities, that such
broker-dealer will deliver a prospectus in connection with any resale of such
Exchange Notes, and (e) it has no arrangements or understandings with any Person
to participate in the distribution of the Transfer Restricted Notes or the
Exchange Notes) to transfer such Exchange Notes from and after their receipt
without any limitations or restrictions under the 1933 Act and under state
securities or blue sky laws. In connection with the Exchange Offer, the Company
and the Subsidiary Guarantors shall additionally:

            (a) utilize the services of the Depositary for the Exchange Offer;

            (b) permit Holders to withdraw tendered Transfer Restricted Notes at
      any time prior to 5:00 p.m. (Eastern Standard Time), on the last business
      day of the Exchange Period, by sending to the institution specified in the
      notice, a telegram, telex, facsimile transmission or letter setting forth
      the name of such Holder, the principal amount of Transfer Restricted Notes
      delivered for exchange, and a statement that such Holder is withdrawing
      such Holder's election to have such Notes exchanged;

            (c) notify each Holder that any Transfer Restricted Notes not
      tendered will remain outstanding and continue to accrue interest, but will
      not retain any rights under this Agreement (except in the case of the
      Initial Purchasers and Participating Broker-Dealers as provided herein);
      and

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            (d) otherwise comply in all respects with all applicable laws
      relating to the Exchange Offer.

      If, prior to consummation of the Exchange Offer, the Initial Purchasers
hold any Notes acquired by them and having the status of an unsold allotment in
the initial distribution, the Company and the Subsidiary Guarantors upon the
request of any Initial Purchaser shall, simultaneously with the delivery of the
Exchange Notes in the Exchange Offer, issue and deliver to such Initial
Purchaser in exchange (the "PRIVATE EXCHANGE") for the Notes held by such
Initial Purchaser, a like principal amount of debt securities of the Company
that are identical (except that such securities shall bear appropriate transfer
restrictions) to the Exchange Notes (the "PRIVATE EXCHANGE NOTES") and
guaranteed by the Subsidiary Guarantors.

      The Exchange Notes and the Private Exchange Notes shall be issued under
(i) the Indenture or (ii) an indenture identical in all material respects to the
Indenture and which, in either case, has been qualified under the Trust
Indenture Act of 1939, as amended (the "TIA"), or is exempt from such
qualification and shall provide that the Exchange Notes shall not be subject to
the transfer restrictions set forth in the Indenture but that the Private
Exchange Notes shall be subject to such transfer restrictions. The Exchange
Notes, the Private Exchange Notes and the Notes shall vote and consent together
on all matters as one class and none of the Exchange Notes, the Private Exchange
Notes or the Notes will have the right to vote or consent as a separate class on
any matter. The Private Exchange Notes shall be of the same series as, and the
Company shall use all commercially reasonable efforts to have the Private
Exchange Notes bear the same CUSIP number as, the Exchange Notes. The Company
and the Subsidiary Guarantors shall not have any liability under this Agreement
solely as a result of such Private Exchange Notes not bearing the same CUSIP
number as the Exchange Notes.

      As soon as practicable after the close of the Exchange Offer and/or the
Private Exchange, as the case may be, the Company and the Subsidiary Guarantors
shall:

            (i) accept for exchange all Transfer Restricted Notes duly tendered
      and not validly withdrawn pursuant to the Exchange Offer in accordance
      with the terms of the Exchange Offer Registration Statement and the letter
      of transmittal which shall be an exhibit thereto;

            (ii) accept for exchange all Notes properly tendered pursuant to the
      Private Exchange;

            (iii) deliver to the Trustee for cancellation all Transfer
      Restricted Notes so accepted for exchange; and

            (iv) cause the Trustee promptly to authenticate and deliver Exchange
      Notes or Private Exchange Notes, as the case may be, to each Holder of
      Transfer Restricted Notes so accepted for exchange in a principal amount
      equal to the principal amount of the Transfer Restricted Notes of such
      Holder so accepted for exchange.

      Interest on each Exchange Note and Private Exchange Note, including
Additional Interest, will accrue (a) from the later of (i) the last date on
which interest was paid on the Transfer Restricted Notes surrendered in exchange
therefor or (ii) if the Transfer Restricted

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Notes are surrendered for exchange on a date in a period which includes the
record date for an interest payment date to occur on or after the date of such
exchange and as to which interest will be paid, the date of such interest
payment date or (b) if no interest has been paid on the Transfer Restricted
Notes, from the Closing Date. The Company shall inform the Initial Purchasers of
the names and addresses of the Holders to whom the Exchange Offer is made, and
the Initial Purchasers shall have the right, but not the obligation, to contact
such Holders and otherwise facilitate the tender of Transfer Restricted Notes in
the Exchange Offer.

      2.2 SHELF REGISTRATION. If,

            (i) the Company or any Subsidiary Guarantor is not permitted to file
      the Exchange Offer Registration Statement or to consummate the Exchange
      Offer because the Exchange Offer is not permitted by applicable law or SEC
      rules and regulations,

            (ii) for any other reason the Exchange Offer is not consummated
      within 222 days after the Closing Date,

            (iii) any Holder notifies the Company within 30 days following the
      date upon which the Exchange Offer Registration Statement is declared
      effective that:

                  (1) such Holder is not entitled to participate in the Exchange
            Offer,

                  (2) such Holder may not resell or otherwise transfer the
            Exchange Notes acquired by it in the Exchange Offer to the public
            without delivering a prospectus and the prospectus contained in the
            Exchange Offer Registration Statement is not appropriate for such
            resales by such Holder, or

                  (3) such Holder is a broker-dealer and owns Notes acquired
            directly from the Company or an affiliate of the Company, or

            (iv) the holders of a majority in aggregate principal amount of the
      Transfer Restricted Notes are not eligible to participate in the Exchange
      Offer and to receive Exchange Notes that they may resell to the public
      without volume restrictions under the 1933 Act and the rules thereunder
      and without similar restrictions under applicable blue sky or state
      securities laws,

then in case of each of clauses (i) through (iv) the Company and the Subsidiary
Guarantors shall promptly deliver to the Holders and the Trustee written notice
thereof and shall, at their cost:

            (a) file with the SEC as promptly as practicable (and, in any event
      on or prior to the 60th day after such filing obligation arises) and
      thereafter shall use their best efforts to cause to be declared effective
      no later than 180 days after such filing obligation arises, a Shelf
      Registration Statement relating to the offer and sale of the Transfer
      Restricted Notes by the Holders from time to time in accordance with the
      methods of distribution elected by the Holders of a majority in aggregate
      principal amount of Transfer Restricted Notes participating in the Shelf
      Registration and set forth in such Shelf Registration Statement; provided,
      however, that, if the obligation to file the Shelf Registration Statement
      arises because the Exchange Offer has not been consummated

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      within 210 days after the Closing Date, the Company and Subsidiary
      Guarantors shall use their best efforts to file the Shelf Registration
      Statement as promptly as practicable after such date, and in any event
      prior to the 241st day following the Closing Date,

            (b) use their best efforts to keep the Shelf Registration Statement
      continuously effective, supplemented and amended (including through
      post-effective amendments on Form S-3 if the Company is eligible to use
      such Form) in order to permit the Prospectus forming part thereof to be
      usable by Holders for a period of two years from the date the Shelf
      Registration Statement is declared effective by the SEC, or for such
      shorter period that will terminate when all Transfer Restricted Notes
      covered by the Shelf Registration Statement have been sold pursuant to the
      Shelf Registration Statement or cease to be outstanding or otherwise to be
      Transfer Restricted Notes (the "EFFECTIVENESS PERIOD"); provided, however,
      that the Effectiveness Period in respect of the Shelf Registration
      Statement shall, upon written request to the Company, be extended to the
      extent required to permit dealers to comply with the applicable prospectus
      delivery requirements of Rule 174 under the 1933 Act and as otherwise
      provided herein, and

            (c) notwithstanding any other provisions hereof, use their best
      efforts to ensure that (i) any Shelf Registration Statement and any
      amendment thereto and any Prospectus forming part thereof and any
      supplement thereto complies in all material respects with the 1933 Act and
      the rules and regulations thereunder, (ii) any Shelf Registration
      Statement and any amendment thereto does not, when it becomes effective,
      contain an untrue statement of a material fact or omit to state a material
      fact required to be stated therein or necessary to make the statements
      therein not misleading and (iii) any Prospectus forming part of any Shelf
      Registration Statement, and any supplement to such Prospectus (as amended
      or supplemented from time to time), does not include an untrue statement
      of a material fact or omit to state a material fact necessary in order to
      make the statements, in light of the circumstances under which they were
      made, not misleading.

            The Company and the Subsidiary Guarantors shall not permit any
securities other than Transfer Restricted Notes to be included in the Shelf
Registration Statement. The Company and the Subsidiary Guarantors further agree,
if necessary, to supplement or amend the Shelf Registration Statement, as
required by Section 3(b) below, and to furnish to the Holders of Transfer
Restricted Notes copies of any such supplement or amendment promptly after its
being used or filed with the SEC.

            2.3 EXPENSES. The Company and the Subsidiary Guarantors shall pay
all Registration Expenses in connection with the registration pursuant to
Section 2.1 or 2.2. Each Holder shall pay all underwriting discounts and
commissions and transfer taxes, if any, relating to the sale or disposition of
such Holder's Transfer Restricted Notes pursuant to the Shelf Registration
Statement.

            2.4 EFFECTIVENESS.

            (a) The Company and the Subsidiary Guarantors will be deemed not to
      have used their best efforts to cause the Exchange Offer Registration
      Statement or the Shelf Registration Statement, as the case may be, to
      become, or to remain, effective during the

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      requisite period if either the Company or any Subsidiary Guarantor
      voluntarily takes any action that would, or omits to take any action which
      omission would, result in any such Registration Statement not being
      declared effective, or in the Holders of Transfer Restricted Notes covered
      thereby not being able to exchange or offer and sell such Transfer
      Restricted Notes during that period as and to the extent contemplated
      hereby, unless such action is required by applicable law, in each case
      other than under the circumstances described in Sections 3(e)(iii), (iv),
      (v) or (vi) below.

            (b) An Exchange Offer Registration Statement pursuant to Section 2.1
      hereof or a Shelf Registration Statement pursuant to Section 2.2 hereof
      will not be deemed to have become effective unless it has been declared
      effective by the SEC; provided, however, that if, after it has been
      declared effective, the offering of Transfer Restricted Notes pursuant to
      an Exchange Offer Registration Statement or a Shelf Registration Statement
      is interfered with by any stop order, injunction or other order or
      requirement of the SEC or any other governmental agency or court, such
      Registration Statement will not be effective during the period of such
      interference, until the offering of Transfer Restricted Notes pursuant to
      such Registration Statement may legally resume.

            2.5 ADDITIONAL INTEREST. In the event that either,

            (a) the Exchange Offer Registration Statement is not filed with the
      SEC on or prior to the 120th calendar day following the Closing Date, or a
      Shelf Registration Statement is not filed with the SEC prior to the dates
      specified for such filing in Section 2.2 hereof;

            (b) the Exchange Offer Registration Statement has not been declared
      effective by the SEC under the 1933 Act on or prior to the 180th calendar
      day following the Closing Date, or a Shelf Registration Statement is not
      declared effective by the SEC under the 1933 Act on or prior to the 180th
      day after such filing obligation arises,

            (c) the Exchange Offer is not consummated within 222 days following
      the Closing Date,

            (d) a Shelf Registration Statement is declared effective but
      thereafter, during the period for which the Company and the Subsidiary
      Guarantors are required to maintain the effectiveness of such Shelf
      Registration Statement, it ceases to be effective or usable in connection
      with the resale of the Notes covered by such Shelf Registration Statement,
      or

            (e) the Exchange Offer Registration Statement is declared effective,
      but thereafter, during the Broker Prospectus Period, it ceases to be
      effective (or the Company or any Subsidiary Guarantor restricts the use of
      the prospectus included therein) (each such event referred to in these
      clauses (a) through (e) above, a "REGISTRATION DEFAULT"),

then, the interest rate borne by the Transfer Restricted Notes shall be
increased by one-quarter of one percent (0.25%) per annum with respect to the
first 90-day period (or portion thereof) while a Registration Default is
continuing immediately following the occurrence of such Registration Default,
which rate will increase by an additional one quarter of one percent (0.25%) per
annum

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at the beginning of each subsequent 90-day period (or portion thereof) while a
Registration Default is continuing until all Registration Defaults have been
cured, provided that the maximum aggregate increase in the interest rate on the
Transfer Restricted Notes will in no event exceed one percent (1.00%) per annum
(the "ADDITIONAL INTEREST"). Following the cure of all Registration Defaults the
accrual of Additional Interest will cease and the interest rate on the Transfer
Restricted Notes will revert to the original rate. Notwithstanding the
foregoing, any Registration Default specified in clause (a), (b) or (c) of this
Section that relates to the Exchange Offer Registration Statement or the
Exchange Offer shall be deemed cured at such time as the Shelf Registration
Statement is declared effective by the SEC, or earlier upon the cure of the
Registration Default described therein.

      If the Shelf Registration Statement is unusable by the Holders whose
Transfer Restricted Notes are covered thereby for any reason, and the aggregate
number of days in any consecutive twelve-month period for which the Shelf
Registration Statement shall not be usable exceeds 30 days in the aggregate,
then the interest rate borne by such Holders' Notes will be increased by
one-quarter of one percent (0.25%) per annum for the first 90-day period (or
portion thereof) beginning on the 31st day in any consecutive twelve-month
period that such Shelf Registration Statement ceases to be usable, which rate
shall be increased by an additional one-quarter of one percent (0.25%) per annum
at the beginning of each subsequent 90-day period (or portion thereof) in any
consecutive twelve-month period during which the Shelf Registration Statement is
unusable, provided that the maximum aggregate increase in the interest rate on
such Holder's Notes will in no event exceed one percent (1.00%) per annum. Any
amounts payable under this paragraph shall also be deemed "ADDITIONAL INTEREST"
for purposes of this Agreement. Upon any such Shelf Registration Statement once
again becoming usable, the interest rate borne by the Notes will be reduced to
the original interest rate if no other Registration Default shall be continuing
at such time. Additional Interest shall be computed based on the actual number
of days elapsed in each 90-day period in which the Shelf Registration Statement
is unusable.

      The Company shall notify the Trustee within three business days after each
and every date on which an event occurs in respect of which Additional Interest
is required to be paid (an "EVENT DATE"). Any Additional Interest due shall be
payable on each interest payment date to the Holder of Notes with respect to
which Additional Interest is due and owing. Each obligation to pay Additional
Interest shall be deemed to accrue from and including the day following the
applicable Event Date.

      3. REGISTRATION PROCEDURES.

            In connection with the obligations of the Company and the Subsidiary
Guarantors with respect to Registration Statements pursuant to Sections 2.1 and
2.2 hereof, the Company and the Subsidiary Guarantors shall:

            (a) prepare and file with the SEC a Registration Statement, within
      the relevant time period specified in Section 2, on the appropriate form
      under the 1933 Act and the rules promulgated thereunder, which form (i)
      shall be selected by the Company, (ii) shall, in the case of a Shelf
      Registration, be available for the sale of the Transfer Restricted Notes
      by the selling Holders thereof, (iii) shall comply as to form in all
      material respects with the requirements of the applicable form and include
      or incorporate by reference all

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      financial statements required by the SEC to be filed therewith or
      incorporated by reference therein, and (iv) shall comply in all respects
      with the requirements of Regulation S-T under the 1933 Act;

            (b) prepare and file with the SEC such amendments and post-effective
      amendments to each Registration Statement as may be necessary under
      applicable law to keep such Registration Statement effective for the
      applicable period; and cause each Prospectus to be supplemented by any
      required prospectus supplement, and as so supplemented to be filed
      pursuant to Rule 424 (or any similar provision then in force) under the
      1933 Act and comply with the provisions of the 1933 Act, the 1934 Act and
      the rules and regulations thereunder applicable to them with respect to
      the disposition of all securities covered by each Registration Statement
      during the applicable period in accordance with the intended method or
      methods of distribution by the selling Holders thereof (including sales by
      any Participating Broker-Dealer);

            (c) in the case of a Shelf Registration, (i) notify each Holder of
      Transfer Restricted Notes to be covered thereby, at least five business
      days prior to filing, that a Shelf Registration Statement with respect to
      such Transfer Restricted Notes is being filed and advising such Holders
      that the distribution of such Transfer Restricted Notes will be made in
      accordance with the method selected by a majority in aggregate principal
      amount of the Holders of Transfer Restricted Notes participating in the
      Shelf Registration; (ii) furnish to each Holder of Transfer Restricted
      Notes to be covered thereby and to each underwriter of an underwritten
      offering of Transfer Restricted Notes, if any, without charge, as many
      copies of each Prospectus, including each preliminary Prospectus, and any
      amendment or supplement thereto and such other documents as such Holder or
      underwriter may reasonably request, including financial statements and
      schedules and, if the Holder so requests, all exhibits in order to
      facilitate the public sale or other disposition of the Transfer Restricted
      Notes; and (iii) do hereby consent to the use of the Prospectus or any
      amendment or supplement thereto by each of the selling Holders of Transfer
      Restricted Notes in connection with the offering and sale of the Transfer
      Restricted Notes covered by the Prospectus or any amendment or supplement
      thereto;

            (d) use their best efforts to register or qualify the Transfer
      Restricted Notes under all applicable state securities or "blue sky" laws
      of such jurisdictions as any Holder of Transfer Restricted Notes covered
      by a Registration Statement and each underwriter of an underwritten
      offering of Transfer Restricted Notes shall reasonably request by the time
      the applicable Registration Statement is declared effective by the SEC,
      and do any and all other acts and things which may be reasonably necessary
      or advisable to enable each such Holder and underwriter to consummate the
      disposition in each such jurisdiction of such Transfer Restricted Notes
      owned by such Holder; provided, however, that the Company and the
      Subsidiary Guarantors shall not be required to (i) qualify as a foreign
      corporation or as a dealer in securities in any jurisdiction where they
      would not otherwise be required to qualify but for this Section 3(d), or
      (ii) take any action which would subject them to general service of
      process or taxation in any such jurisdiction where they are not then so
      subject;

                                       11
<PAGE>

            (e) notify promptly each Holder of Transfer Restricted Notes under a
      Shelf Registration or any Participating Broker-Dealer who has notified the
      Company that it is utilizing the Exchange Offer Registration Statement as
      provided in paragraph (f) below and, if requested by such Holder or
      Participating Broker-Dealer, confirm such advice in writing promptly (i)
      when a Registration Statement has become effective and when any
      post-effective amendments and supplements to a Registration Statement have
      become effective, (ii) of any request by the SEC or any state securities
      authority for post-effective amendments and supplements to a Registration
      Statement and Prospectus or for additional information after the
      Registration Statement has become effective, (iii) of the issuance by the
      SEC or any state securities authority of any stop order suspending the
      effectiveness of a Registration Statement or the initiation of any
      proceedings for that purpose, (iv) in the case of a Shelf Registration,
      if, between the effective date of a Registration Statement and the closing
      of any sale of Transfer Restricted Notes covered thereby, the
      representations and warranties of the Company and the Subsidiary
      Guarantors contained in any underwriting agreement, securities sales
      agreement or other similar agreement, if any, relating to the offering
      cease to be true and correct in all material respects, (v) of the
      happening of any event or the discovery of any facts during the period a
      Shelf Registration Statement is effective which makes any statement made
      in such Registration Statement or the related Prospectus untrue in any
      material respect or which requires the making of any changes in such
      Registration Statement or Prospectus in order to make the statements
      therein not misleading, (vi) of the receipt by the Company of any
      notification with respect to the suspension of the qualification of the
      Transfer Restricted Notes or the Exchange Notes, as the case may be, for
      sale in any jurisdiction or the initiation or threatening of any
      proceeding for such purpose and (vii) of any determination by the Company
      that a post-effective amendment to such Registration Statement would be
      appropriate;

            (f) in the case of the Exchange Offer Registration Statement (i)
      include in the Exchange Offer Registration Statement a section entitled
      "Plan of Distribution" which section shall be in customary form, and which
      shall contain a summary statement of the positions taken or policies made
      by the staff of the SEC with respect to the potential "underwriter" status
      of any broker-dealer that holds Transfer Restricted Notes acquired for its
      own account as a result of market-making activities or other trading
      activities and that will be the beneficial owner (as defined in Rule 13d-3
      under the Exchange Act) of Exchange Notes to be received by such
      broker-dealer in the Exchange Offer, whether such positions or policies
      have been publicly disseminated by the staff of the SEC or such positions
      or policies, represent the prevailing views of the staff of the SEC,
      including a statement that any such broker-dealer who receives Exchange
      Notes for Transfer Restricted Notes pursuant to the Exchange Offer may be
      deemed a statutory underwriter and must deliver a prospectus meeting the
      requirements of the 1933 Act in connection with any resale of such
      Exchange Notes, (ii) furnish to each Participating Broker-Dealer who has
      delivered to the Company the notice referred to in Section 3(e), without
      charge, as many copies of each Prospectus included in the Exchange Offer
      Registration Statement, including any preliminary prospectus, and any
      amendment or supplement thereto, as such Participating Broker-Dealer may
      reasonably request, (iii) do hereby consent to the use of the Prospectus
      forming part of the Exchange Offer Registration Statement or any amendment
      or supplement thereto, by any Person subject to the

                                       12
<PAGE>

      prospectus delivery requirements of the SEC, including all Participating
      Broker-Dealers, in connection with the sale or transfer of the Exchange
      Notes covered by the Prospectus or any amendment or supplement thereto,
      and (iv) include in the transmittal letter or similar documentation to be
      executed by an exchange offeree in order to participate in the Exchange
      Offer (x) the following provision:

            "If the exchange offeree is a broker-dealer holding Transfer
            Restricted Notes acquired for its own account as a result of
            market-making activities or other trading activities, it will
            deliver a prospectus meeting the requirements of the 1933 Act in
            connection with any resale of Exchange Notes received in respect of
            such Transfer Restricted Notes pursuant to the Exchange Offer;" and

(y) a statement to the effect that by a broker-dealer's making the
acknowledgment described in clause (x) and by delivering a Prospectus in
connection with the exchange of Transfer Restricted Notes, the broker-dealer
will not be deemed to admit that it is an underwriter within the meaning of the
1933 Act;

            (g) make every reasonable effort to obtain the withdrawal of any
      order suspending the effectiveness of a Registration Statement at the
      earliest possible moment;

            (h) in the case of a Shelf Registration, furnish to each Holder of
      Transfer Restricted Notes, and each underwriter, if any, without charge,
      at least one conformed copy of each Registration Statement and any
      post-effective amendment thereto, including financial statements and
      schedules (without documents incorporated therein by reference and all
      exhibits thereto, unless requested);

            (i) in the case of a Shelf Registration, cooperate with the selling
      Holders of Transfer Restricted Notes to facilitate the timely preparation
      and delivery of certificates representing Transfer Restricted Notes to be
      sold and not bearing any restrictive legends; and enable such Transfer
      Restricted Notes to be in such denominations (consistent with the
      provisions of the Indenture) and registered in such names as the selling
      Holders or the underwriters, if any, may reasonably request at least three
      business days prior to the closing of any sale of Transfer Restricted
      Notes;

            (j) in the case of a Shelf Registration, upon the occurrence of any
      event or the discovery of any facts, each as contemplated by Sections
      3(e)(v) and 3(e)(vi) hereof, as promptly as practicable after the
      occurrence of such an event, use their best efforts to prepare a
      supplement or post-effective amendment to the Registration Statement or
      the related Prospectus or any document incorporated therein by reference
      or file any other required document so that, as thereafter delivered to
      the purchasers of the Transfer Restricted Notes or Participating
      Broker-Dealers, such Prospectus will not contain at the time of such
      delivery any untrue statement of a material fact or omit to state a
      material fact necessary to make the statements therein, in light of the
      circumstances under which they were made, not misleading or will remain so
      qualified. At such time as such public disclosure is otherwise made or the
      Company determines that such disclosure is not necessary, in each case to
      correct any misstatement of a material fact or to include any

                                       13
<PAGE>

      omitted material fact, the Company and the Subsidiary Guarantors agree
      promptly to notify each Holder of such determination and to furnish each
      Holder such number of copies of the Prospectus as amended or supplemented,
      as such Holder may reasonably request;

            (k) in the case of a Shelf Registration, a reasonable time prior to
      the filing of any Registration Statement, any Prospectus, any amendment to
      a Registration Statement or amendment or supplement to a Prospectus,
      provide copies of such document to the Initial Purchasers on behalf of
      such Holders; and make representatives of the Company and the Subsidiary
      Guarantors as shall be reasonably requested by the Holders of Transfer
      Restricted Notes, or the Initial Purchasers on behalf of such Holders,
      available for discussion of such document;

            (1) obtain a CUSIP number for all Exchange Notes, Private Exchange
      Notes or Transfer Restricted Notes, as the case may be, not later than the
      effective date of a Registration Statement, and provide the Trustee with
      certificates for the Exchange Notes, Private Exchange Notes or the
      Transfer Restricted Notes, as the case may be, in a form eligible for
      deposit with the Depositary;

            (m) (i) cause the Indenture to be qualified under the TIA in
      connection with the registration of the Exchange Notes, (ii) cooperate
      with the Trustee and the Holders to effect such changes to the Indenture
      as may be required for the Indenture to be so qualified in accordance with
      the terms of the TIA and (iii) execute, and use their best efforts to
      cause the Trustee to execute, all documents as may be required to effect
      such changes, and all other forms and documents required to be filed with
      the SEC to enable the Indenture to be so qualified in a timely manner;

            (n) in the case of a Shelf Registration, enter into agreements
      (including underwriting agreements) and take all other customary and
      appropriate actions in order to expedite or facilitate the disposition of
      such Transfer Restricted Notes and if so requested by the holders of such
      Transfer Restricted Notes and in such connection whether or not an
      underwriting agreement is entered into and whether or not the registration
      is an underwritten registration:

                  (i) make such representations and warranties to the Holders of
            such Transfer Restricted Notes and the underwriters, if any, as the
            Company and the Subsidiary Guarantors are able to make, in form,
            substance and scope as are customarily made by issuers to
            underwriters in similar underwritten offerings as may be reasonably
            requested by them;

                  (ii) in connection with an underwritten registration, obtain
            opinions of counsel to the Company and the Subsidiary Guarantors and
            updates thereof (which counsel and opinions (in form, scope and
            substance) shall be reasonably satisfactory to the managing
            underwriters, if any, and the holders of a majority in principal
            amount of the Transfer Restricted Notes being sold) addressed to
            each selling Holder and the underwriters, if any, covering the
            matters customarily covered in opinions requested in sales of
            securities or underwritten offerings and

                                       14
<PAGE>

            such other matters as may be reasonably requested by such Holders
            and underwriters;

                  (iii) in connection with an underwritten registration, obtain
            "cold comfort" letters and updates thereof from the Company's and
            the Subsidiary Guarantor's independent certified public accountants
            (and, if necessary, any other independent certified public
            accountants of any subsidiary of the Company or of any business
            acquired by the Company for which financial statements are, or are
            required to be, included in the Registration Statement) addressed to
            the underwriters, if any, and use reasonable efforts to have such
            letter addressed to the selling Holders of Transfer Restricted Notes
            (to the extent consistent with Statement on Auditing Standards No.
            72 of the American Institute of Certified Public Accountants), such
            letters to be in customary form and covering matters of the type
            customarily covered in "cold comfort" letters to underwriters in
            connection with similar underwritten offerings;

                  (iv) enter into a securities sales agreement with the Holders
            and an agent of the Holders providing for, among other things, the
            appointment of such agent for the selling Holders for the purpose of
            soliciting purchases of Transfer Restricted Notes, which agreement
            shall be in form, substance and scope customary for similar
            offerings;

                  (v) if an underwriting agreement is entered into, cause the
            same to set forth indemnification provisions and procedures
            substantially equivalent to the indemnification provisions and
            procedures set forth in Section 4 hereof with respect to the
            underwriters and all other parties to be indemnified pursuant to
            said Section or, at the request of any underwriters, in the form
            customarily provided to such underwriters in similar types of
            transactions; and

                  (vi) deliver such documents and certificates as may be
            reasonably requested and as are customarily delivered in similar
            offerings to the Holders of a majority in principal amount of the
            Transfer Restricted Notes being sold and the managing underwriters,
            if any.

The above shall be done at (i) the effectiveness of such Shelf Registration
Statement (and each post-effective amendment thereto) and (ii) each closing
under any underwriting or similar agreement as and to the extent required
thereunder;

            (o) in the case of a Shelf Registration or if a Prospectus is
      required to be delivered by any Participating Broker-Dealer in the case of
      an Exchange Offer, make available for inspection by representatives of the
      Holders of the Transfer Restricted Notes, any underwriters participating
      in any disposition pursuant to a Shelf Registration Statement, any
      Participating Broker-Dealer and any counsel or accountant retained by any
      of the foregoing, all non-confidential financial and other records,
      pertinent corporate documents and properties of the Company or any
      Subsidiary Guarantor reasonably requested by any such persons, and cause
      the respective officers, directors, employees, and any other agents of the
      Company and the Subsidiary Guarantors to supply all

                                       15
<PAGE>

      information reasonably requested by any such representative, underwriter,
      special counsel or accountant in connection with a Registration Statement,
      and make such representatives of the Company and the Subsidiary Guarantors
      available for discussion of such documents as shall be reasonably
      requested by such persons;

                  (i) if so requested by the Initial Purchasers, in the case of
            an Exchange Offer Registration Statement, a reasonable time prior to
            filing of any Exchange Offer Registration Statement, any Prospectus
            forming a part thereof, any amendment to an Exchange Offer
            Registration Statement or amendment or supplement to such
            Prospectus, provide copies of such document to the Initial
            Purchasers and to counsel to the Holders of Transfer Restricted
            Notes; and

                  (ii) in the case of a Shelf Registration, a reasonable time
            prior to filing any Shelf Registration Statement, any Prospectus
            forming a part thereof, any amendment to such Shelf Registration
            Statement or amendment or supplement to such Prospectus, provide
            copies of such documents to the Initial Purchasers, if so requested,
            to the Holders of Transfer Restricted Notes to be covered thereby,
            to counsel for such Holders designated by them and to the
            underwriter or underwriters of an underwritten offering of such
            Transfer Restricted Notes, if any, make such changes in any such
            document prior to the filing thereof relating to such Holders or
            such Transfer Restricted Notes as the counsel to the Holders or the
            underwriter or underwriters reasonably request and not file any such
            document in a form to which the holders of a majority in aggregate
            principal amount of Transfer Restricted Notes covered by such Shelf
            Registration Statement, counsel for such Holders of the Transfer
            Restricted Notes covered by such Shelf Registration Statement, or
            any underwriter shall not have previously been advised and furnished
            a copy of or to which the Majority Holders of Transfer Restricted
            Notes covered by such Shelf Registration Statement, counsel to such
            Holders or Transfer Restricted Notes or any underwriter shall
            reasonably object, and make the representatives of the Company and
            the Subsidiary Guarantors available for discussion of such document
            as shall be reasonably requested by such Holders of Transfer
            Restricted Notes, the counsel for such Holders of Transfer
            Restricted Notes or any underwriter;

            (p) in the case of a Shelf Registration, use their best efforts to
      cause all Transfer Restricted Notes to be listed on any securities
      exchange on which similar debt securities issued by the Company and the
      Subsidiary Guarantors are then listed if requested by the Holders of a
      majority in aggregate principal amount of such Transfer Restricted
      Securities covered by such Shelf Registration Statement, or if requested
      by the underwriter or underwriters of an underwritten offering of Transfer
      Restricted Notes, if any;

            (q) in the case of a Shelf Registration, use their best efforts to
      cause the Transfer Restricted Notes to be rated by the appropriate rating
      agencies, if so requested by the Holders of a majority in aggregate
      principal amount of the Transfer Restricted Notes covered by such Shelf
      Registration Statement, or if requested by the underwriter or underwriters
      of an underwritten offering of Transfer Restricted Notes, if any;

                                       16
<PAGE>

            (r) otherwise comply with all applicable rules and regulations of
      the SEC and make available to their security holders, as soon as
      reasonably practicable, an earnings statement covering at least 12 months
      which shall satisfy the provisions of Section 11 (a) of the 1933 Act and
      Rule 158 thereunder; and

            (s) cooperate and assist in any filings required to be made with the
      NASD and, in the case of a Shelf Registration, in the performance of any
      due diligence investigation by any underwriter and its counsel (including
      any "qualified independent underwriter" that is required to be retained in
      accordance with the rules and regulations of the NASD).

      In the case of a Shelf Registration Statement, the Company and the
Subsidiary Guarantors may (as a condition to such Holder's participation in the
Shelf Registration) require each Holder of Transfer Restricted Notes to furnish
to the Company and Subsidiary Guarantors such information regarding the Holder
and the proposed distribution by such Holder of such Transfer Restricted Notes
as the Company and Subsidiary Guarantors may from time to time reasonably
request in writing.

      In the case of a Shelf Registration Statement, each Holder agrees that,
upon receipt of any notice from the Company or any Subsidiary Guarantor of the
happening of any event or the discovery of any facts, each of the kind described
in Section 3(e)(v) hereof, such Holder will forthwith discontinue disposition of
Transfer Restricted Notes pursuant to a Registration Statement until such
Holder's receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 3(k) hereof, and, if so directed by the Company and
Subsidiary Guarantors, such Holder will deliver to the Company and Subsidiary
Guarantors (at its expense) all copies in such Holder's possession, other than
permanent file copies then in such Holder's possession, of the Prospectus
covering such Transfer Restricted Notes current at the time of receipt of such
notice.

      If any of the Transfer Restricted Notes covered by any Shelf Registration
Statement are to be sold in an underwritten offering, the underwriter or
underwriters and manager or managers that will manage such offering will be
selected by the Majority Holders of such Transfer Restricted Notes to be
included in such offering and shall be acceptable to the Company and Subsidiary
Guarantors. No Holder of Transfer Restricted Notes may participate in any
underwritten registration hereunder unless such Holder (a) agrees to sell such
Holder's Transfer Restricted Notes on the basis provided in any underwriting
arrangements approved by the persons entitled hereunder to approve such
arrangements and (b) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents required
under the terms of such underwriting arrangements.

      4. INDEMNIFICATION; CONTRIBUTION.

            (a) The Company and the Subsidiary Guarantors agree to indemnify and
      hold harmless the Initial Purchasers and each of their affiliates and any
      other Person under common control with the Initial Purchasers, each
      Holder, each Participating Broker-

                                       17
<PAGE>

      Dealer, each Person who participates as an underwriter (any such Person
      being an "UNDERWRITER") and each Person, if any, who controls any Holder
      or Underwriter within the meaning of Section 15 of the 1933 Act or Section
      20 of the 1934 Act as follows:

                  (i) against any and all loss, liability, claim, damage and
            expense whatsoever, as incurred, arising out of any untrue statement
            or alleged untrue statement of a material fact contained in any
            Registration Statement (or any amendment or supplement thereto)
            pursuant to which Exchange Notes or Transfer Restricted Notes were
            registered under the 1933 Act, including all documents incorporated
            therein by reference, or the omission or alleged omission therefrom
            of a material fact required to be stated therein or necessary to
            make the statements therein not misleading, or arising out of any
            untrue statement or alleged untrue statement of a material fact
            contained in any Prospectus (or any amendment or supplement thereto)
            or the omission or alleged omission therefrom of a material fact
            necessary in order to make the statements therein, in the light of
            the circumstances under which they were made, not misleading;

                  (ii) against any and all loss, liability, claim, damage and
            expense whatsoever, as incurred, to the extent of the aggregate
            amount paid in settlement of any litigation, or any investigation or
            proceeding by any governmental agency or body, commenced or
            threatened, or of any claim whatsoever based upon any such untrue
            statement or omission, or any such alleged untrue statement or
            omission; provided that (subject to Section 4(d) below) any such
            settlement is effected with the written consent of the Company and
            the Subsidiary Guarantors; and

                  (iii) against any and all expense whatsoever, as incurred
            (including the fees and disbursements of counsel chosen by any
            indemnified party), reasonably incurred in investigating, preparing
            or defending against any litigation, or any investigation or
            proceeding by any governmental agency or body, commenced or
            threatened, or any claim whatsoever based upon any such untrue
            statement or omission, or any such alleged untrue statement or
            omission, to the extent that any such expense is not paid under
            subparagraph (i) or (ii) above;

provided, however, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information concerning any Holder or
Underwriter furnished to the Company by the Holder or Underwriter expressly for
use in a Registration Statement (or any amendment thereto) or any Prospectus (or
any amendment or supplement thereto); and provided, further, that the indemnity
agreement contained in this subsection (a) shall not inure to the benefit of any
Holder or Participating Broker-Dealer from whom the person asserting any such
losses, claims, damages or liabilities purchased the Notes concerned, to the
extent that a prospectus relating to such Notes was required to be delivered by
such Holder or Participating Broker-Dealer under the 1933 Act in connection with
such purchase and any such loss, claim, damage or liability of such Holder or
Participating Broker-Dealer results from the fact that there was not sent or
given to such person,

                                       18
<PAGE>

at or prior to the sale of such Notes to such person, a copy of such prospectus
if the Company had previously furnished copies thereof to such Holder or
Participating Broker-Dealer.

            (b) Each Initial Purchaser severally, but not jointly, agrees to
      indemnify and hold harmless the Company, the Subsidiary Guarantors, the
      Initial Purchasers, each Underwriter and the other selling Holders, and
      each of their respective directors and officers, and each Person, if any,
      who controls the Company, any Subsidiary Guarantor, the Initial
      Purchasers, any Underwriter or any other selling Holder within the meaning
      of Section 15 of the 1933 Act or Section 20 of the 1934 Act, against any
      and all loss, liability, claim, damage and expense described in the
      indemnity contained in Section 4(a) hereof, as incurred, but only with
      respect to untrue statements or omissions, or alleged untrue statements or
      omissions, made in the Shelf Registration Statement (or any amendment
      thereto) or any Prospectus included therein (or any amendment or
      supplement thereto) in reliance upon and in conformity with written
      information with respect to such Holder furnished to the Company and the
      Subsidiary Guarantors by such Holder expressly for use in the Shelf
      Registration Statement (or any amendment thereto) or such Prospectus (or
      any amendment or supplement thereto); provided, however, that no such
      Holder shall be liable for any claims hereunder in excess of the amount of
      net proceeds received by such Holder from the sale of Transfer Restricted
      Notes pursuant to such Shelf Registration Statement.

            (c) Each indemnified party shall give notice as promptly as
      reasonably practicable to each indemnifying party of any action or
      proceeding commenced against it in respect of which indemnity may be
      sought hereunder, but failure so to notify an indemnifying party shall not
      relieve such indemnifying party from any liability hereunder to the extent
      it is not materially prejudiced as a result thereof and in any event shall
      not relieve it from any liability which it may have otherwise than on
      account of this indemnity agreement. An indemnifying party may participate
      at its own expense in the defense of such action; provided, however, that
      counsel to the indemnifying party shall not (except with the consent of
      the indemnified party) also be counsel to the indemnified party. In no
      event shall the indemnifying party or parties be liable for the fees and
      expenses of more than one counsel (in addition to any local counsel)
      separate from their own counsel for all indemnified parties in connection
      with any one action or separate but similar or related actions in the same
      jurisdiction arising out of the same general allegations or circumstances.
      No indemnifying party shall, without the prior written consent of the
      indemnified parties, settle or compromise or consent to the entry of any
      judgment with respect to any litigation, or any investigation or
      proceeding by any governmental agency or body, commenced or threatened, or
      any claim whatsoever in respect of which indemnification or contribution
      could be sought under this Section 4 (whether or not the indemnified
      parties are actual or potential parties thereto), unless such settlement,
      compromise or consent (i) includes an unconditional release of each
      indemnified party from all liability arising out of such litigation,
      investigation, proceeding or claim and (ii) does not include a statement
      as to or an admission of fault, culpability or a failure to act by or on
      behalf of any indemnified party.

            (d) If the indemnification provided for in this Section 4 is for any
      reason unavailable to or insufficient to hold harmless an indemnified
      party in respect of any

                                       19
<PAGE>

      losses, liabilities, claims, damages or expenses referred to therein, then
      each indemnifying party shall contribute to the aggregate amount of such
      losses, liabilities, claims, damages and expenses incurred by such
      indemnified party, as incurred, in such proportion as is appropriate to
      reflect the relative fault of the Company and the Subsidiary Guarantors,
      on the one hand, and the Holders and the Initial Purchasers, on the other
      hand, in connection with the statements or omissions which resulted in
      such losses, liabilities, claims, damages or expenses, as well as any
      other relevant equitable considerations.

      The relative fault of the Company and the Subsidiary Guarantors on the one
hand and the Holders and the Initial Purchasers on the other hand shall be
determined by reference to, among other things, whether any such untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact relates to information supplied by the Company, the
Subsidiary Guarantors, the Holders or the Initial Purchasers and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

      The Company, the Subsidiary Guarantors, the Holders and the Initial
Purchasers agree that it would not be just and equitable if contribution
pursuant to this Section 4 were determined by pro rata allocation (even if the
Initial Purchasers were treated as one entity for such purpose) or by any other
method of allocation which does not take account of the equitable considerations
referred to above in this Section 4. The aggregate amount of losses,
liabilities, claims, damages and expenses incurred by an indemnified party and
referred to above in this Section 4 shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in investigating,
preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any
claim whatsoever based upon any such untrue or alleged untrue statement or
omission or alleged omission.

      No Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933 Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation.

      For purposes of this Section 4, each Person, if any, who controls an
Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act shall have the same rights to contribution as such
Initial Purchaser or Holder, and each director of the Company or any Subsidiary
Guarantor, and each Person, if any, who controls the Company or any Subsidiary
Guarantor within the meaning of Section 15 of the 1933 Act or Section 20 of the
1934 Act shall have the same rights to contribution as the Company and the
Subsidiary Guarantors. The Initial Purchasers' respective obligations to
contribute pursuant to this Section 4 are several in proportion to the principal
amount of Notes set forth opposite their respective names in Schedule A to the
Purchase Agreement and not joint.

      5. MISCELLANEOUS.

            5.1 RULE 144 AND RULE 144A. For so long as the Company and the
Subsidiary Guarantors are subject to the reporting requirements of Section 13 or
15 of the 1934 Act, the Company and the Subsidiary Guarantors covenant that they
will file and furnish the

                                       20
<PAGE>

reports required to be filed by them under the 1933 Act and Section 13(a) or
15(d) of the 1934 Act and the rules and regulations adopted by the SEC
thereunder. If the Company and the Subsidiary Guarantors cease to be so required
to file and furnish such reports, the Company and Subsidiary Guarantors covenant
that they will upon the request of any Holder of Transfer Restricted Notes (a)
make publicly available such information as is necessary to permit sales
pursuant to Rule 144 under the 1933 Act, (b) deliver such information to a
prospective purchaser as is necessary to permit sales pursuant to Rule 144A
under the 1933 Act and take such further action as any Holder of Transfer
Restricted Notes may reasonably request, and (c) take such further action that
is reasonable in the circumstances, in each case, to the extent required from
time to time to enable such Holder to sell its Transfer Restricted Notes without
registration under the 1933 Act within the limitation of the exemptions provided
by (i) Rule 144 under the 1933 Act, as such Rule may be amended from time to
time, (ii) Rule 144A under the 1933 Act, as such Rule may be amended from time
to time, or (iii) any similar rules or regulations hereafter adopted by the SEC.
Upon the request of any Holder of Transfer Restricted Notes, the Company and the
Subsidiary Guarantors will deliver to such Holder a written statement as to
whether they have complied with such requirements.

            5.2 NO INCONSISTENT AGREEMENTS. The Company and the Subsidiary
Guarantors have not entered into, and the Company and the Subsidiary Guarantors
will not after the date of this Agreement enter into, any agreement which is
inconsistent with the rights granted to the Holders of Transfer Restricted Notes
in this Agreement or otherwise conflicts with the provisions hereof. The rights
granted to the Holders hereunder do not and will not for the term of this
Agreement in any way conflict with the rights granted to the holders of the
Company's or Subsidiary Guarantors' other issued and outstanding securities
under any such agreements.

            5.3 AMENDMENTS AND WAIVERS. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the Company and the Subsidiary Guarantors have obtained
the written consent of Holders of at least a majority in aggregate principal
amount of the outstanding Transfer Restricted Notes affected by such amendment,
modification, supplement, waiver or departure.

            5.4 NOTICES. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, registered
first-class mail, telex, telecopier, or any courier guaranteeing overnight
delivery (a) if to a Holder, at the most current address given by such Holder to
the Company by means of a notice given in accordance with the provisions of this
Section 5.4, which address initially, and until so changed, is the address set
forth in the Purchase Agreement with respect to the Initial Purchasers; and (b)
if to the Company and the Subsidiary Guarantors, initially at the Company's
address set forth in the Purchase Agreement, and thereafter at such other
address of which notice is given in accordance with the provisions of this
Section 5.4.

      All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; two business days
after being deposited in the mail, postage prepaid, if mailed; when answered
back, if telexed; when receipt is acknowledged, if telecopied; and on the next
business day if timely delivered to an air courier guaranteeing overnight
delivery.

                                       21
<PAGE>

      Copies of all such notices, demands, or other communications shall be
concurrently delivered by the person giving the same to the Trustee under the
Indenture at the address specified in the Indenture.

            5.5 SUCCESSOR AND ASSIGNS. This Agreement shall inure to the benefit
of and be binding upon the successors, assigns and transferees of each of the
parties, including, without limitation and without the need for an express
assignment, subsequent Holders; provided that nothing herein shall be deemed to
permit any assignment, transfer or other disposition of Transfer Restricted
Notes in violation of the terms of the Purchase Agreement or the Indenture. If
any transferee of any Holder shall acquire Transfer Restricted Notes, in any
manner, whether by operation of law or otherwise, such Transfer Restricted Notes
shall be held subject to all of the terms of this Agreement, and by taking and
holding such Transfer Restricted Notes such person shall be conclusively deemed
to have agreed to be bound by and to perform all of the terms and provisions of
this Agreement, including the restrictions on resale set forth in this Agreement
and, if applicable, the Purchase Agreement, and such person shall be entitled to
receive the benefits hereof.

            5.6 THIRD PARTY BENEFICIARIES. The Initial Purchasers (even if the
Initial Purchasers are not Holders of Transfer Restricted Notes) shall be third
party beneficiaries to the agreements made hereunder between the Company and the
Subsidiary Guarantors, on the one hand, and the Holders, on the other hand, and
shall have the right to enforce such agreements directly to the extent they deem
such enforcement necessary or advisable to protect their rights or the rights of
Holders hereunder. Each Holder of Transfer Restricted Notes shall be a third
party beneficiary to the agreements made hereunder between the Company and the
Subsidiary Guarantors, on the one hand, and the Initial Purchasers, on the other
hand, and shall have the right to enforce such agreements directly to the extent
it deems such enforcement necessary or advisable to protect its rights
hereunder.

            5.7 SPECIFIC ENFORCEMENT. Without limiting the remedies available to
the Initial Purchasers and the Holders, the Company and the Subsidiary
Guarantors acknowledge that any failure by the Company or the Subsidiary
Guarantors to comply with their obligations under Sections 2.1 through 2.4
hereof may result in material irreparable injury to the Initial Purchasers or
the Holders for which there is no adequate remedy at law, that it would not be
possible to measure damages for such injuries precisely and that, in the event
of any such failure, the Initial Purchasers or any Holder may obtain such relief
as may be required to specifically enforce the Company's and Subsidiary
Guarantors' obligations under Sections 2.1 through 2.4 hereof.

            5.8 RESTRICTION ON RESALES. Until the expiration of two years after
the original issuance of the Notes and the Guarantees, the Company and the
Subsidiary Guarantors will not, and will cause their "affiliates" (as such term
is defined in Rule 144(a)(1) under the 1933 Act) not to, resell any Notes and
Guarantees which are "restricted securities" (as such term is defined under Rule
144(a)(3) under the 1933 Act) that have been reacquired by any of them and shall
immediately upon any purchase of any such Notes and Subsidiary Guarantees submit
such Notes and Subsidiary Guarantees to the Trustee for cancellation.

                                       22
<PAGE>

            5.9 COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

            5.10 HEADINGS. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

            5.11 GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the law of the state of Nevada without regard to
the principles of conflict of laws thereof.

            5.12 SEVERABILITY. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

            5.13 AGREEMENT REGARDING TRACINDA. The Initial Purchasers hereby
agree that in the event (i) there is any breach or default or alleged breach or
default by the Company under this Agreement or (ii) the Initial Purchasers have
or may have any claim arising from or relating to the terms hereof, the Initial
Purchasers shall not commence any lawsuit or otherwise seek to impose any
liability whatsoever against Kirk Kerkorian or Tracinda Corporation
(collectively, "TRACINDA"), unless Tracinda shall have commenced a lawsuit or
otherwise initiated any claim against the Initial Purchasers arising from or
relating to this Agreement (a "TRACINDA ACTION"). The Initial Purchasers hereby
further agree that unless a Tracinda Action has been commenced: (i) Tracinda
shall not have any liability whatsoever with respect to this Agreement or any
matters relating to or arising from this Agreement, including any alleged breach
of or default under this Agreement by the Company; and (ii) the Initial
Purchasers shall not assert or permit any party claiming through it to assert a
claim or impose any liability against Tracinda as to any matter or thing arising
out of or relating to this Agreement or any alleged breach or default under this
Agreement by the Company. In addition, the Initial Purchasers agree that
Tracinda is not a party to this Agreement.

                            [signature page follows]

                                       23
<PAGE>

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

                                       MGM MIRAGE,
                                         a Delaware corporation
                                       By:      /s/ Bryan L. Wright
                                                --------------------------------
                                       Name:    Bryan L. Wright
                                       Title:   Vice President - Assistant
                                                General Counsel &
                                                Assistant Secretary

      Joined in and agreed to and accepted by the following
      Subsidiary Guarantors as of the date first above written:

      AC Holding Corp., a Nevada corporation
      AC Holding Corp. II, a Nevada corporation
      Beau Rivage Distribution Corp., a Mississippi corporation
      Beau Rivage Resorts, Inc., a Mississippi corporation
      Bellagio, LLC, a Nevada limited liability company
      Bellagio II, LLC, a Nevada limited liability company
      Boardwalk Casino, Inc., a Nevada corporation
      Bungalow, Inc., a Mississippi corporation
      Country Star Las Vegas, LLC, a Nevada limited liability company
      Destron, Inc., a Nevada corporation
      EGARIM, Inc., an Alabama corporation
      Grand Laundry, Inc., a Nevada corporation
      LV Concrete Corp., a Nevada corporation
      M.I.R. Travel, a Nevada corporation
      MAC, CORP., a New Jersey corporation
      Metropolitan Marketing, LLC, a Nevada limited liability company
      MGM Grand Atlantic City, Inc., a New Jersey corporation
      MGM Grand Condominiums, LLC, a Nevada limited liability company
      MGM Grand Detroit, Inc., a Delaware corporation
      MGM Grand Hotel, LLC, a Nevada limited liability company
      MGM Grand New York, LLC, a Nevada limited liability company
      MGM Grand Resorts, LLC, a Nevada limited liability company
      MGM MIRAGE Advertising, Inc., a Nevada corporation
      MGM MIRAGE Acquisition Co. # 61, a Nevada corporation
      MGM MIRAGE Aviation Corp., a Nevada corporation
      MGM MIRAGE Corporate Services, a Nevada corporation
      MGM MIRAGE Design Group, a Nevada Corporation
      MGM MIRAGE Development, Inc., a Nevada corporation
      MGM MIRAGE Entertainment and Sports, a Nevada corporation
      MGM MIRAGE International, a Nevada corporation
      MGM MIRAGE Manufacturing Corp., a Nevada corporation

<PAGE>

      MGM MIRAGE Operations, Inc., a Nevada corporation
      MGM MIRAGE Retail, a Nevada corporation
      MH, Inc., a Nevada corporation
      Mirage Laundry Services Corp., a Nevada corporation
      Mirage Leasing Corp., a Nevada corporation
      Mirage Resorts, Incorporated, a Nevada corporation
      MMNY Land Company, Inc., a New York corporation
      MRGS Corp., a Nevada corporation
      New PRMA Las Vegas, Inc., a Nevada corporation
      New York-New York Hotel & Casino, LLC, a Nevada limited liability company
      New York-New York Tower, LLC, a Nevada limited liability company
      PRMA Land Development Company, a Nevada corporation
      PRMA, LLC, a Nevada limited liability company
      Restaurant Ventures of Nevada, Inc., a Nevada corporation
      The April Cook Companies, a Nevada corporation
      The Mirage Casino-Hotel, a Nevada corporation
      The Primadonna Company, LLC, a Nevada limited liability company
      Treasure Island Corp., a Nevada corporation
      VidiAd, a Nevada corporation

      By:   /s/ Bryan L. Wright
            -----------------------------
            Name:  Bryan Wright
            Title: Assistant Secretary

CONFIRMED AND ACCEPTED,
         as of the date first above written:

BANC OF AMERICA SECURITIES LLC

By:      /s/ Michael W. Meyer
         -----------------------------
         Name:  Michael W. Meyer
         Title: Managing Director

For itself and as representative of the other Initial Purchasers

                                      S-2
<PAGE>

                                   SCHEDULE A

                                INITIAL PURCHASER

Banc of America Securities LLC
Citigroup Global Markets Inc.
Barclays Capital Inc.
BNP Paribas Securities Corp.
CIBC World Markets Corp.
Commerzbank Capital Markets Corp.
Deutsche Bank Securities Inc.
Greenwich Capital Markets, Inc.
J.P. Morgan Securities Inc.
McDonald Investments Inc.
Piper Jaffray & Co.
Scotia Capital (USA) Inc.
SG Americas Securities, LLC
Wachovia Capital Markets, LLC
Wells Fargo Securities, LLC

                                      S-3exv10w1

 

EXECUTION VERSION

REVOLVING CREDIT

AND TERM LOAN AGREEMENT

dated as of

August 20, 2004

among

CAPITAL AUTOMOTIVE L.P., as Borrower

CAPITAL AUTOMOTIVE REIT, as Guarantor

The Lenders Party Hereto,

JPMORGAN CHASE BANK,

as Administrative Agent, Swingline Lender and Issuing Bank,

BANK OF AMERICA, N.A. and

WACHOVIA BANK, NATIONAL ASSOCIATION, as Syndication Agents,

and

WELLS FARGO BANK, NATIONAL ASSOCIATION and

RBC CAPITAL MARKETS, as Documentation Agents

J.P. MORGAN SECURITIES INC.,

as Sole Bookrunner and Sole Lead Arranger

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	SECTION 1.1.
	 	Defined Terms	 	 	1	 
	SECTION 1.2.
	 	Classification of Loans and Borrowings	 	 	23	 
	SECTION 1.3.
	 	Terms Generally	 	 	23	 
	SECTION 1.4.
	 	Accounting Terms; GAAP	 	 	24	 
	ARTICLE II THE CREDITS
	 	 	24	 
	SECTION 2.1.
	 	Loans	 	 	24	 
	SECTION 2.2.
	 	Loans and Borrowings	 	 	24	 
	SECTION 2.3.
	 	Requests for Revolving Borrowings and Term Borrowing	 	 	25	 
	SECTION 2.4.
	 	Competitive Bid Procedure	 	 	26	 
	SECTION 2.5.
	 	Swingline Loans	 	 	28	 
	SECTION 2.6.
	 	Letters of Credit	 	 	29	 
	SECTION 2.7.
	 	Funding of Borrowings	 	 	33	 
	SECTION 2.8.
	 	Interest Elections	 	 	33	 
	SECTION 2.9.
	 	Termination and Reduction of Revolver Commitments;
Increase of Revolver Commitments	 	 	34	 
	SECTION 2.10.
	 	Repayment of Loans; Evidence of Debt; Extension of
Revolving Loan Maturity Date	 	 	36	 
	SECTION 2.11.
	 	Prepayment of Loans	 	 	37	 
	SECTION 2.12.
	 	Fees	 	 	37	 
	SECTION 2.13.
	 	Interest	 	 	38	 
	SECTION 2.14.
	 	Alternate Rate of Interest	 	 	39	 
	SECTION 2.15.
	 	Increased Costs	 	 	40	 
	SECTION 2.16.
	 	Break Funding Payments	 	 	41	 
	SECTION 2.17.
	 	Taxes	 	 	41	 
	SECTION 2.18.
	 	Payments Generally; Pro Rata Treatment; Sharing of Set-offs	 	 	43	 
	SECTION 2.19.
	 	Mitigation Obligations; Replacement of Lenders	 	 	44	 
	ARTICLE III REPRESENTATIONS
AND WARRANTIES
	 	 	45	 
	SECTION 3.1.
	 	Organization; Powers	 	 	45	 
	SECTION 3.2.
	 	Authorization; Enforceability	 	 	45	 
	SECTION 3.3.
	 	Governmental Approvals; No Conflicts	 	 	45	 
	SECTION 3.4.
	 	Financial Condition; No Material Adverse Change	 	 	45	 

i-

 

	 	 	 	 	 	 	 
	SECTION 3.5.
	 	Properties	 	 	46	 
	SECTION 3.6.
	 	Litigation and Environmental Matters	 	 	46	 
	SECTION 3.7.
	 	Compliance with Laws and Agreements	 	 	47	 
	SECTION 3.8.
	 	Investment and Holding Company Status	 	 	47	 
	SECTION 3.9.
	 	Taxes	 	 	47	 
	SECTION 3.10.
	 	ERISA	 	 	47	 
	SECTION 3.11.
	 	Indebtedness	 	 	47	 
	SECTION 3.12.
	 	Organization Structure/Subsidiaries	 	 	47	 
	SECTION 3.13.
	 	Solvency	 	 	47	 
	SECTION 3.14.
	 	Location of Properties; Unencumbered Properties	 	 	48	 
	SECTION 3.15.
	 	No Burdensome Restrictions	 	 	48	 
	SECTION 3.16.
	 	Disclosure	 	 	48	 
	SECTION 3.17.
	 	Insurance	 	 	48	 
	SECTION 3.18.
	 	SEC Reports	 	 	48	 
	ARTICLE IV CONDITIONS
	 	 	49	 
	SECTION 4.1.
	 	Effective Date	 	 	49	 
	SECTION 4.2.
	 	Each Credit Event	 	 	50	 
	ARTICLE IVA GUARANTY
	 	 	50	 
	SECTION 4A.1.
	 	Guaranty of Payment and Performance	 	 	50	 
	SECTION 4A.2.
	 	Obligations Unconditional	 	 	50	 
	SECTION 4A.3.
	 	Modifications	 	 	51	 
	SECTION 4A.4.
	 	Waiver of Rights	 	 	51	 
	SECTION 4A.5.
	 	Reinstatement	 	 	52	 
	SECTION 4A.6.
	 	Remedies	 	 	52	 
	SECTION 4A.7.
	 	Limitation of Guaranty	 	 	52	 
	ARTICLE V AFFIRMATIVE COVENANTS
	 	 	52	 
	SECTION 5.1.
	 	Financial Statements; Ratings Change and Other Information	 	 	52	 
	SECTION 5.2.
	 	Notices of Material Events	 	 	54	 
	SECTION 5.3.
	 	Existence; Conduct of Business	 	 	54	 
	SECTION 5.4.
	 	Payment of Obligations	 	 	55	 
	SECTION 5.5.
	 	Maintenance of Properties; Insurance	 	 	55	 
	SECTION 5.6.
	 	Books and Records; Inspection Rights	 	 	55	 
	SECTION 5.7.
	 	Compliance with Laws and Material Contractual Obligations	 	 	55	 
	SECTION 5.8.
	 	Use of Proceeds and Letters of Credit	 	 	55	 

ii-

 

	 	 	 	 	 	 	 
	SECTION 5.9.
	 	Interest Rate Protection Arrangements	 	 	55	 
	SECTION 5.10.
	 	Further Assurances	 	 	56	 
	SECTION 5.11.
	 	Distributions in the Ordinary Course	 	 	56	 
	SECTION 5.12.
	 	ERISA Compliance	 	 	56	 
	SECTION 5.13.
	 	Notices of Asset Sales or Dispositions	 	 	56	 
	ARTICLE VI NEGATIVE COVENANTS
	 	 	56	 
	SECTION 6.1.
	 	Indebtedness and certain other Financial Covenants	 	 	56	 
	SECTION 6.2.
	 	Liens	 	 	58	 
	SECTION 6.3.
	 	Fundamental Changes	 	 	58	 
	SECTION 6.4.
	 	Investments, Loans, Advances, Guaranty Obligations and Acquisitions	 	 	59	 
	SECTION 6.5.
	 	Intentionally Omitted	 	 	59	 
	SECTION 6.6.
	 	Disposition of Assets	 	 	59	 
	SECTION 6.7.
	 	Transactions with Affiliates	 	 	59	 
	SECTION 6.8.
	 	Fiscal Year	 	 	59	 
	SECTION 6.9.
	 	Margin Regulations; Securities Laws	 	 	59	 
	SECTION 6.10.
	 	ERISA	 	 	59	 
	ARTICLE VII EVENTS OF DEFAULT
	 	 	60	 
	SECTION 7.1.
	 	 	 	 	60	 
	SECTION 7.2.
	 	 	 	 	62	 
	ARTICLE VIII THE
ADMINISTRATIVE AGENT
	 	 	62	 
	ARTICLE IX MISCELLANEOUS
	 	 	64	 
	SECTION 9.1.
	 	Notices	 	 	64	 
	SECTION 9.2.
	 	Waivers; Amendments	 	 	65	 
	SECTION 9.3.
	 	Expenses; Indemnity; Damage Waiver	 	 	66	 
	SECTION 9.4.
	 	Successors and Assigns	 	 	67	 
	SECTION 9.5.
	 	Survival	 	 	70	 
	SECTION 9.6.
	 	Counterparts; Integration; Effectiveness	 	 	70	 
	SECTION 9.7.
	 	Severability	 	 	70	 
	SECTION 9.8.
	 	Right of Setoff	 	 	71	 
	SECTION 9.9.
	 	Governing Law; Jurisdiction; Consent to Service of Process	 	 	71	 
	SECTION 9.10.
	 	WAIVER OF JURY TRIAL	 	 	71	 
	SECTION 9.11.
	 	Headings	 	 	72	 
	SECTION 9.12.
	 	Confidentiality	 	 	72	 

iii-

 

	 	 	 	 	 	 	 
	SECTION 9.13.
	 	USA PATRIOT Act	 	 	72	 
	SECTION 9.14.
	 	Interest Rate Limitation	 	 	72	 

iv-

 

SCHEDULES:

Schedule A — Revolver Commitments and Pro Rata Share of Term Loan

Schedule 1.1(a) — Eligible Ground Leases

Schedule 1.1(b) — Other Ground Leases

Schedule 3.6(a) — Litigation

Schedule 3.6(b) — Environmental Matters

Schedule 3.11 — Existing Indebtedness

Schedule 3.12 — Organization Chart of the Guarantor and the Subsidiaries

Schedule 3.14 — All Properties, Unencumbered Properties and Unencumbered Construction Properties

Schedule 3.17 — Insurance

EXHIBITS:

	 	 	 
	Exhibit 2.3

	 	Form of Borrowing Request
	 
	 	 
	Exhibit 2.4(a)

	 	Form of Competitive Bid Request
	 
	 	 
	Exhibit 2.4(b)

	 	Form of Competitive Bid
	 
	 	 
	Exhibit 2.8(b)

	 	Form of Interest Election Request
	 
	 	 
	Exhibit 2.10(e)-1

	 	Form of Revolving Note
	 
	 	 
	Exhibit 2.10(e)-2

	 	Form of Term Note
	 
	 	 
	Exhibit 5.1(c)

	 	Form of Officer’s Certificate
	 
	 	 
	Exhibit 9.4(b)(ii)(C)

	 	Form of Assignment and Assumption
	 
	 	 
	Exhibit 9.4(e)(i)

	 	Form of Designation Agreement
	 
	 	 
	Exhibit 9.4(e)(ii)

	 	Form of Designated Bank Note

v-

 

     THIS REVOLVING CREDIT AND TERM LOAN AGREEMENT (as amended, supplemented or
otherwise modified from time to time, this “Agreement”) is entered into
as of August 20, 2004, among CAPITAL AUTOMOTIVE L.P., a Delaware limited
partnership, as borrower (the “Borrower”), CAPITAL AUTOMOTIVE REIT, a
Maryland real estate investment trust, as guarantor (the “Guarantor”),
the Lenders (as defined herein) and JPMORGAN CHASE BANK, as Administrative
Agent for the Lenders, Swingline Lender and Issuing Bank.

RECITALS

     WHEREAS, the Borrower desires that the Lenders provide (i) a term loan
facility in an aggregate amount of $150 million, (ii) a revolving credit
facility in an initial aggregate amount of up to $250 million with the option
to increase the aggregate amount to $350 million, (iii) letters of credit, (iv)
swing loans and (v) competitive bid borrowings;

     WHEREAS, the Guarantor has agreed to unconditionally guarantee all the
obligations of the Borrower hereunder; and

     WHEREAS, the Lenders have agreed to make the requested term and revolving
credit facilities available to the Borrower on the terms and conditions
hereinafter set forth.

     NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.1. 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 Book Value” means the lower of undepreciated cost or
market value, determined in accordance with GAAP.

     “Adjusted LIBO Rate” means, with respect to any Eurodollar
Borrowing for any Interest Period, an interest rate per annum (rounded upwards,
if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such
Interest Period multiplied by (b) the Statutory Reserve Rate.

     “Administrative Agent” means JPMorgan Chase Bank, 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.

 

 

     “Agreement” means this Revolving Credit and Term Loan Agreement,
including the Schedules and Exhibits hereto.

     “Alternate Base Rate” means, for any day, a rate per annum equal to
the greater of (a) the Prime Rate in effect on such day and (b) the Federal
Funds Effective Rate in effect on such day plus 1/2 of 1%. 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 Credit Ratings” means the ratings assigned to the Index
Debt by the Rating Agencies.

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

     “Applicable Rate” means, for any day, with respect to any
Eurodollar Loan, or with respect to the facility fees payable hereunder, as the
case may be, the applicable rate per annum set forth below under the captions
“Eurodollar Spread”, or “Facility Fee Rate”, as the case may be, based upon:

     (a) if neither the Borrower nor the Guarantor has at least two
Applicable Credit Ratings in effect (including at least one from Moody’s
or S&P), the Eurodollar Spread shall be determined based on the range
into which the Leverage Ratio then falls as follows:

	 	 	 	 	 	 	 
	 	 	Leverage
	 	Eurodollar

	Categories
	 	Ratio
	 	Spread

	1
	 	< 45%	 	 	1.100	%
	2
	 	3 45% but < 50%	 	 	1.250	%
	3
	 	3 50% but < 55%	 	 	1.450	%
	4
	 	3 55% but < 60%	 	 	1.550	%
	5
	 	3 60%	 	 	1.750	%

     (b) if either (i) the Borrower has at least two Applicable Credit
Ratings in effect (including at least one from Moody’s or S&P) or (ii)
the Guarantor has at least two Applicable Credit Ratings in effect
(including at least one from Moody’s or S&P), the Eurodollar Spread and
the Facility Fee Rate shall be determined based upon the lowest
Applicable Credit Rating of (A) the Borrower, if the Borrower has at
least two Applicable Credit Ratings in effect and the Guarantor does not,
(B) the Guarantor, if the Guarantor has at least two Applicable Credit
Ratings in effect and the Borrower does not, or (C) if both the Borrower
and the Guarantor have at least

-2-

 

two Applicable Credit Ratings in effect, the Credit Party with the
highest Applicable Credit Ratings (including at least one from Moody’s or
S&P), in each case as of the most recent Calculation Date in the table
below; provided that in the event that if either or both Credit
Parties receive more than two Applicable Credit Ratings and such
Applicable Credit Ratings are not equivalent, the Applicable Margin shall
be determined by the lower of the two highest Applicable Credit Ratings
of the applicable Credit Party under clauses (A), (B) or (C) above,
provided that at least one of such two highest Applicable Credit
Ratings shall be from S&P or Moody’s; provided further,
that if neither of the two highest Applicable Credit Ratings were issued
by S&P or Moody’s, the Applicable Margin shall be determined by the
highest Applicable Credit Rating of the applicable Credit Party from S&P
or Moody’s:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	S&P	 	Moody’s	 	 	 	 
	 	 	Applicable Credit	 	Applicable Credit	 	Eurodollar	 	Facility Fee
	Categories:
	 	Rating
	 	Rating
	 	Spread
	 	Rate

	1
	 	BBB+ or better	 	Baa1 or better	 	 	0.75	%	 	 	0.15	%
	2
	 	BBB	 	Baa2	 	 	0.85	%	 	 	0.15	%
	3
	 	BBB-	 	Baa3	 	 	0.95	%	 	 	0.20	%
	4
	 	BB+	 	Ba1	 	 	1.05	%	 	 	0.20	%
	5
	 	Below BB+	 	Below Ba1	 	 	1.25	%	 	 	0.25	%

     Additionally, if the Applicable Credit Ratings are changed (other
than as a result of a change in the rating system of the Rating
Agencies), such change shall be effective as of the date on which it is
first announced by the applicable Rating Agency, irrespective of when
notice of such change shall have been furnished by the Borrower to the
Administrative Agent and the Lenders pursuant to SECTION 5.1. or otherwise. Each change in the Applicable Rate shall apply
during the period commencing on the effective date of such change and
ending on the date immediately preceding the effective date of the next
such change. If the rating system of any of the Rating Agencies shall
change, or if either such Rating Agency shall cease to be in the business
of rating corporate debt obligations, the Borrower and the Lenders shall
negotiate in good faith to amend this definition to reflect such changed
rating system or the unavailability of ratings from such rating agency
and, pending the effectiveness of any such amendment, the Applicable Rate
shall be determined by reference to the rating most recently in effect
prior to such change or cessation.

     The Applicable Rate shall be determined and adjusted on the date (each a
“Calculation Date”) (i) if the Applicable Rate is determined pursuant to clause
(a) above, five Business Days after the date on which the Borrower provides the
officer’s certificate in accordance with the provisions of SECTION 5.1(c);
provided that if the Borrower fails to provide the officer’s certificate
required
by SECTION 5.1(c) on or before the date required by SECTION 5.1(c), the
Applicable Rate from such date

-3-

 

shall be based on Category 5 in clause (a) above
until such time that an appropriate officer’s certificate is provided whereupon
the Applicable Rate shall be determined by the then current Leverage Ratio, or
(ii) if the Applicable Rate is determined pursuant to clause (b) above, the
date the Borrower obtains an Applicable Credit Rating from at least two Rating
Agencies or the date there is a change in any Applicable Credit Rating that
would cause a change in the Applicable Rate pursuant to clause (b) above, in
each case promptly after the Administrative Agent receives notice regarding
such Applicable Credit Rating. Each Applicable Rate shall be effective from
one Calculation Date until the next Calculation Date. Any adjustment in the
Applicable Rate shall be applicable both to new Revolving Loans made and to all
existing Loans.

     The Borrower shall promptly deliver to the Administrative Agent (x) any
notice it receives from a Rating Agency regarding a change in the Applicable
Credit Ratings or (y) any information that might reasonably be expected by the
Borrower to change the Leverage Ratio, and in each case that would change the
existing category for the Applicable Rate as set forth above.

     “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.

     “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 9.4), and accepted by the
Administrative Agent, in the form of Exhibit 9.4(b)(ii)(C) or any other
form approved by the Administrative Agent.

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

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

     “Borrower” means Capital Automotive L.P., a Delaware limited
partnership.

     “Borrowing” means (a) 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, (b) a Competitive Loan or
group of Competitive Loans of the same Type made on the same date and as to
which a single Interest Period is in effect, (c) a Swingline Loan or (d) each
portion of the Term Loan of the same Type made, converted or continued on the
same date and, if such portion is then a Eurodollar Loan, as to which a single
Interest Period is in effect.

     “Borrowing Request” means a request by the Borrower for a Revolving
Borrowing or a Term Borrowing in accordance with SECTION 2.3, substantially in
the form of Exhibit 2.3.

     “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.

     “Calculation Date” has the meaning set forth in the definition of
Applicable Rate in this SECTION 1.1.

-4-

 

     “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.

     “Cash Equivalents” means:

     (a) direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United States of
America (or by any agency thereof to the extent such obligations are
backed by the full faith and credit of the United States of America), in
each case maturing within one year from the date of acquisition thereof;

     (b) investments in commercial paper maturing within 270 days from the
date of acquisition thereof and having, at such date of acquisition, the
highest credit rating obtainable from S&P or from Moody’s;

     (c) investments in certificates of deposit, banker’s acceptances and
time deposits maturing within 180 days from the date of acquisition
thereof issued or guaranteed by or placed with, and money market deposit
accounts issued or offered by, any domestic office of any commercial bank
organized under the laws of the United States of America or any State
thereof which has a combined capital and surplus and undivided profits of
not less than $500,000,000;

     (d) fully collateralized repurchase agreements with a term of not
more than 30 days for securities described in clause (a) above and entered
into with a financial institution satisfying the criteria described in
clause (c) above; and

     (e) money market funds that (i) comply with the criteria set forth in
Securities and Exchange Commission Rule 2a-7 under the Investment Company
Act of 1940, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have
portfolio assets of at least $5,000,000,000.

     “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 33.33% of the aggregate ordinary
voting power represented by the issued and outstanding Equity Interests of the
Guarantor, (b) occupation of a majority of the seats (other than vacant seats)
on the board of trustees of the Guarantor by Persons who were neither (i)
nominated by the board of trustees of the Guarantor nor (ii) appointed by
trustees so nominated, (c) the acquisition of direct or indirect Control of the
Guarantor by any Person or group, or (d) the Guarantor fails to directly own at
least 51% of the aggregate ownership interests in the Borrower (giving effect
to any convertible interests with respect thereto).

     “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
the Issuing Bank (or, for purposes of SECTION 2.15(b), by
any lending office of such Lender or by such Lender’s or the Issuing Bank’s
holding company, if any) with any request, guideline or
directive (whether or not having the force of law) of any Governmental
Authority having jurisdiction over such Lender or Issuing Bank made or issued
after the date of this Agreement.

-5-

 

     “Class”, when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, is a part of the
Term Loan, the Revolving Loans, the Competitive Loans or the Swingline Loans.

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

     “Combined Equity Value” means Total Value less Total Outstanding
Indebtedness.

     “Competitive Bid” means an offer by a Lender to make a Competitive
Loan in accordance with SECTION 2.4, substantially in the form of Exhibit
2.4(b).

     “Competitive Bid Rate” means, with respect to any Competitive Bid,
the Margin or the Fixed Rate, as applicable, offered by the Lender making such
Competitive Bid.

     “Competitive Bid Request” means a request by the Borrower for
Competitive Bids in accordance with SECTION 2.4, substantially in the form of
Exhibit 2.4(a).

     “Competitive Loan” means a Loan made pursuant to SECTION 2.4.

     “Consolidated Businesses” means the Guarantor, the Borrower and
their Subsidiaries, on a consolidated basis (without taking into account any
non-wholly owned Person or entity).

     “Construction-in-Process” means Real Property owned by a
Consolidated Business or Joint Venture Entity on which construction of
improvements on Eligible Land has commenced and is proceeding to completion in
the ordinary course but has not yet been completed, as such completion shall be
evidenced by a certificate of occupancy (or its reasonable equivalent in
jurisdictions where a certificate of occupancy is not available).

     “Construction Property” means Construction-in-Process and Eligible
Land.

     “Contingent Obligation” as to any Person means, without
duplication, (i) any contingent obligation of such Person required to be shown
on such Person’s balance sheet in accordance with GAAP, and (ii) any obligation
required to be disclosed in the footnotes to such Person’s financial statements
in accordance with GAAP, guaranteeing partially or in whole any non-recourse
Indebtedness, lease, dividend or other obligation, exclusive of contractual
indemnities (including, without limitation, any indemnity or price-adjustment
provision relating to the purchase or sale of securities or other assets) and
exclusive of guarantees of non-monetary obligations (other than guarantees of
completion) which have not yet been called on or quantified, of such Person or
of any other Person. The amount of any Contingent Obligation described in
clause (ii) shall be deemed to be (a) with respect to a guaranty of interest or
interest and principal, or operating income guaranty, the sum of all payments
required to be made thereunder (which in the case of an operating income
guaranty shall be deemed to be equal to the debt service for the note secured
thereby), calculated at the interest rate applicable to such Indebtedness,
through (i) in the case of an interest or interest and principal guaranty, the
stated dated maturity of the obligation (and commencing on the date interest
could first be payable thereunder), or (ii) in the case of an operating income
guaranty, the date through which such guaranty will remain in effect, and (b)
with respect to all guarantees not covered by the preceding clause (a) an
amount equal to the stated or determinable amount of the primary obligation in
respect of which such guaranty is made or, if not stated or determinable, the
maximum reasonable anticipated liability in respect thereof (assuming such
Person is
required to perform thereunder) as recorded on the balance sheet and on
the footnotes to the most recent financial statements of the applicable
Borrower required to be delivered pursuant hereto. Notwithstanding anything
contained herein to the contrary, guarantees of completion and of Nonrecourse

-6-

 

Carveouts shall not be deemed to be Contingent Obligations unless and until a
claim for payment has been made thereunder, at which time any such guaranty of
completion or of Nonrecourse Carveouts shall be deemed to be a Contingent
Obligation in an amount equal to any such claim. Subject to the preceding
sentence, (i) in the case of a joint and several guaranty given by such Person
and another Person (but only to the extent such guaranty is recourse, directly
or indirectly to the applicable Person), the amount of the guaranty shall be
deemed to be 100% thereof unless and only to the extent that such other Person
has delivered cash or Cash Equivalents to secure all or any part of such
Person’s guaranteed obligations, and (ii) in the case of a guaranty (whether or
not joint and several) of an obligation otherwise constituting Indebtedness of
such Person, the amount of such guaranty shall be deemed to be only that amount
in excess of the amount of the obligation constituting Indebtedness of such
Person. Notwithstanding anything contained herein to the contrary, “Contingent
Obligations” shall not be deemed to include (x) guarantees of loan commitments
or of construction loans to the extent the same have not been drawn or (y)
guarantees of collection limited to guaranteeing fully secured loans that
require the lender to foreclose upon all collateral before making a claim
against any such guarantee and which guarantees shall be reduced by any amounts
recovered from the borrower or any collateral, provided, that in no
event shall liabilities under such guarantees exceed 5% of Total Value.

     “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.

     “Credit Documents” means this Agreement, any Notes issued
hereunder, any notice of Borrowing, any Competitive Bid quote request, any
Borrowing Request and all other related agreements and documents issued or
delivered hereunder or thereunder or pursuant hereto or thereto.

     “Credit Parties” means the Borrower and the Guarantor and
“Credit Party” means either one of them.

     “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.

     “Designated Bank” means a special purpose corporation that (i)
shall have become a party to this Agreement pursuant to SECTION 9.4(e), and
(ii) is not otherwise a Lender.

     “Designated Bank Notes” means promissory notes of the Borrower,
substantially in the form of Exhibit 9.4(e)(ii) hereto, evidencing the
obligation of the Borrower to repay Competitive Loans made by Designated Banks,
as the same may be amended, supplemented, modified or restated from time to
time, and “Designated Bank Note” means any one of such promissory notes issued
under SECTION 9.4(e).

     “Designating Lender” shall have the meaning set forth in SECTION
9.4(e).

     “Designation Agreement” means a designation agreement,
substantially in the form of Exhibit 9.4(e)(i), entered into by a Lender
and a Designated Bank and accepted by the Administrative Agent.

     “Disclosed Matters” means the actions, suits and proceedings and
the Environmental Liabilities disclosed in the Form 8-K of the Guarantor, dated
April 7, 2004.

     “DOL” means the United States Department of Labor and any Person
succeeding to the functions thereof.

-7-

 

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

     “EBITDA” means, for any period, the Net Income (Loss) of the
Consolidated Businesses for such period, plus (a) the sum of the following
amounts of the Consolidated Businesses for such period determined on a
consolidated basis in conformity with GAAP, to the extent included in the
determination of such Net Income (Loss): (i) depreciation expense, (ii)
amortization expense and other non-cash charges, (iii) interest expense, (iv)
income tax expense, (v) extraordinary losses and debt extinguishment charges,
and (vi) minority interests in Joint Venture Entities, less (b) the sum of the
following amounts of the Consolidated Businesses for such period determined on
a consolidated basis in conformity with GAAP, to the extent included in the
determination of such Net Income (Loss): (i) extraordinary gains (and other
gains on asset sales not otherwise included in extraordinary gains determined
on a consolidated basis in conformity with GAAP) and (ii) the applicable share
of Net Income (Loss) of such the Consolidated Businesses’ Joint Venture
Entities, plus (c) the portion allocable to the Consolidated Businesses of
EBITDA of such Person’s Joint Venture Entities for such period.

     “Effective Date” means the date on which the conditions specified
in SECTION 4.1 are satisfied (or waived in accordance
with SECTION 9.2.

     “Eligible Assignee” means (a) any Lender or any Affiliate of a
Lender, (b) a commercial bank having total assets in excess of $5,000,000,000,
(c) the central bank of any country which is a member of the Organization for
Economic Cooperation and Development, (d) any Approved Fund, or (e) a finance
company or other financial institution reasonably acceptable to the
Administrative Agent, which is regularly engaged in making, purchasing or
investing in loans and having total assets in excess of $500,000,000 or is
otherwise acceptable to the Administrative Agent. Neither a Credit Party nor
any Affiliate of a Credit Party shall qualify as an Eligible Assignee.

     “Eligible Ground Lease” means a ground lease that (a)(i) has a
minimum remaining term of thirty (30) years, including tenant controlled
renewal options or acceptable purchase options containing nominal or market
based purchase prices, as of any date of determination, and (ii) has customary
notice rights, default cure rights, bankruptcy new lease rights and other
customary provisions for the benefit of a leasehold mortgagee or has equivalent
protection for a leasehold permanent mortgagee by a subordination to such
leasehold permanent mortgagee of the landlord’s fee interest, or (b) is
otherwise acceptable to the Administrative Agent, after receipt of the
applicable ground lease, for non-recourse leasehold mortgage financing under
customary prudent lending requirements. The Eligible Ground Leases as of the
date of this Agreement are listed on Schedule 1.1(a).

     “Eligible Land” means undeveloped land owned by a Consolidated
Business or Joint Venture Entity which is zoned for use as an automobile
dealership or other automotive-related property, including office buildings and
other administrative facilities used in connection with the administration or
management of automobile dealerships, and which is not subject to a building
moratorium or other restriction on construction, and which is not subject to a
Lease.

     “Eligible Property” means Real Property owned or ground leased by a
Consolidated Business or Joint Venture Entity which (i) is improved with
Improvements that (a) have received a certificate of occupancy (or reasonable
equivalent in jurisdictions where a certificate of occupancy is not
available) and (b) are free from material title or structural defects, as
certified by an officer of the Borrower (which certification may be based on
third party reports) or (ii) is improved with Improvements suitable for use as
an automobile dealership or other automotive-related property (including office
buildings and other administrative facilities used in connection with the
administration or management of automobile dealerships), is undergoing
construction or expansion and has not yet received a certificate of occupancy
(or reasonable equivalent in jurisdictions where a certificate of occupancy is
not available), and is subject

-8-

 

to a Lease, together with any undeveloped,
income-producing parcels of land related to Real Property identified in clauses
(i) or (ii) above which are subject to a Lease.

     “Environmental Event” is defined in the definition of Unencumbered
Construction Property.

     “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 Guarantor, 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 or the Guarantor, 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.

     “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, Guarantor or any ERISA
Affiliates of any liability under Title IV of ERISA with respect to the
termination of any Plan, (e) the receipt by the Borrower, Guarantor 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, Guarantor or any 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, Guarantor or any
ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from
the Borrower, Guarantor 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 Adjusted LIBO Rate.

-9-

 

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

     “Excluded Taxes” means, with respect to the Administrative Agent,
any Lender, the Issuing Bank 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 2.19(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 2.17(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 2.17(a).

     “Facility Fee Rate” means the applicable rate per annum with
respect to facility fees set forth under the caption “Facility Fee Rate” in
paragraph (b) of the definition of Applicable Rate.

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

     “Financial Officer” means the chief financial officer, chief
accounting officer, treasurer, assistant treasurer, controller, president and
chief executive officer, secretary, general counsel or any senior vice
president of the Borrower or the Guarantor, as applicable.

     “Fixed Charges” means, with respect to any period, the sum of (a)
Total Interest Expense for such period and (b) the aggregate of all scheduled
principal payments on Total Outstanding Indebtedness according to GAAP made or
required to be made during such period by the Consolidated Businesses or
allocable to the Consolidated Businesses on account of Joint Venture Holdings
(but excluding balloon payments and repayments of principal due upon the stated
maturity of any Indebtedness) and (c) the aggregate of all dividends and
distributions payable (whether paid or accrued) on the Consolidated Businesses
preferred equity interests (if any).

     “Fixed Rate” means, with respect to any Competitive Loan (other
than a Eurodollar Competitive Loan), the fixed rate of interest per annum
specified by the Lender making such Competitive Loan in its related Competitive
Bid.

     “Fixed Rate Loan” means a Competitive Loan bearing interest at a
Fixed Rate.

     “Foreign Lender” means any Lender or Issuing Bank that is not a
“United States person” under Section 7701(a)(3) of the Code.

     “Funds from Operations” means “funds from operations” as defined in
accordance with resolutions adopted by the Board of Governors of the National
Association of Real Estate Investment Trusts as in effect from time to time,
but excluding one-time debt extinguishment charges.

-10-

 

     “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.

     “Guaranty” means the guaranty of payment provided by the Guarantor
pursuant to SECTION 4A.

     “Guaranty Obligations” 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 Guaranty Obligations shall not
include endorsements for collection or deposit in the ordinary course of
business.

     “Guarantor” means Capital Automotive REIT, a Maryland real estate
investment trust.

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

     “Improvements” means all buildings, fixtures, structures, parking
areas, landscaping and other improvements whether existing now or hereafter
constructed, together with all machinery and mechanical, electrical, HVAC and
plumbing systems presently located thereon and used to the operation thereof,
excluding (a) any such items owned by utility service providers, (b) any such
items owned by tenants or other third parties unaffiliated with the Credit
Parties or their Subsidiaries and (c) any items of personal property.

     “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 Guaranty Obligations 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, (j) all
obligations, contingent or otherwise, of such Person in respect of bankers’
acceptances, (k) all obligations of such Person to purchase or redeem any
shares of equity securities issued by such Person, including obligations under
so-

-11-

 

called forward equity purchase contracts to the extent such obligations are
not payable solely in equity interests, (l) all uncollateralized obligations of
such Person in respect of any Swap Agreements and (m) all obligations of such
Person in respect of any so-called “synthetic lease” (i.e., a lease of property
which is treated as an operating lease under GAAP and as a loan for U.S. income
tax purposes). 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.

     “Index Debt” means senior, unsecured, long-term indebtedness for
borrowed money of the Borrower or the Guarantor, as applicable, that is not
guaranteed by any other Person or subject to any other credit enhancement.

     “Initial Revolving Loan Maturity Date” means August 20, 2007.

     “Information Memorandum” means the Confidential Information
Memorandum dated July 2004 relating to the Borrower and the Transactions.

     “Interest Election Request” means a request by the Borrower to
convert or continue (a) a Revolving Borrowing, or (b) all or a portion of the
Term Loan, in each case in accordance with SECTION 2.8.

     “Interest Payment Date” means (a) with respect to any ABR Loan, the
last Business Day of each March, June, September and December, (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 and, in the case of a Eurodollar
Borrowing with an Interest Period of more than three months’ duration, each day
prior to the last day of such Interest Period that occurs at intervals of three
months’ duration after the first day of such Interest Period, and (c) with
respect to any Fixed Rate Loan, the last day of the Interest Period applicable
to the Borrowing of which such Loan is a part and, in the case of a Fixed Rate
Borrowing with an Interest Period of more than 90 days’ duration (unless
otherwise specified in the applicable Competitive Bid Request), each day prior
to the last day of such Interest Period that occurs at intervals of 90 days’
duration after the first day of such Interest Period, and any other dates that
are specified in the applicable Competitive Bid Request as Interest Payment
Dates with respect to such Borrowing.

     “Interest Period” means (a) 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, three
or six months thereafter, as the Borrower may elect, and (b) with respect to
any Fixed Rate Borrowing, a period of one, two or three months’ duration as the
Borrower may elect, commencing, in each case, on the date of such Borrowing and
ending on the date specified in the applicable Competitive Bid Request;
provided, that (i) 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, in the case of a Eurodollar Borrowing only, 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, (ii) 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,
(iii) no Interest Period with respect to any Revolving Loan shall extend beyond
the Revolving Loan Maturity Date and (iv) no Interest Period with respect to
the Term Loan shall extend beyond the Term Loan Maturity Date. For purposes
hereof, the date of a Borrowing initially shall be the date on which

-12-

 

such
Borrowing is made and, in the case of a Revolving Borrowing or the Term
Borrowing, thereafter shall be the effective date of the most recent conversion
or continuation of such Borrowing.

     “Investment Grade Debt Rating” means an Applicable Credit Rating of
BBB- or higher by S&P or Baa3 or higher by Moody’s (or an equivalent rating
from another nationally recognized rating agency).

     “Investments” is defined in SECTION 6.4.

     “Issuing Bank” means JPMorgan Chase Bank, in its capacity as the
issuer of Letters of Credit hereunder, and its successors in such capacity as
provided in SECTION 2.6(i). The Issuing Bank may, in its discretion, arrange
for one or more Letters of Credit to be issued by Affiliates of the Issuing
Bank, in which case the term “Issuing Bank” shall include any such Affiliate
with respect to Letters of Credit issued by such Affiliate.

     “Joint Venture” means a partnership, limited liability company,
joint venture (including a tenancy-in-common ownership pursuant to a written
agreement providing for substantially the same rights and obligations relating
to such property that would be in a joint venture agreement), or corporation.

     “Joint Venture Entity” means a Joint Venture in which the Borrower
or the Guarantor, directly or indirectly, has a Joint Venture Holding.

     “Joint Venture Holding” means an interest in a Joint Venture held
or owned by the Borrower or the Guarantor (or one of their Subsidiaries) which
is not wholly owned by the Borrower or the Guarantor (or one of their
Subsidiaries).

     “LC Disbursement” means a payment made by the Issuing Bank pursuant
to a Letter of Credit.

     “LC Exposure” means, at any time, the sum of (a) the aggregate
undrawn amount of all outstanding Letters of Credit at such time plus (b) the
aggregate amount of all LC Disbursements that have not yet been reimbursed by
or on behalf of the Borrower at such time. The LC Exposure of any Lender at
any time shall be its Applicable Percentage of the total LC Exposure at such
time.

     “Lease” means a lease, license, concession agreement or other
agreement providing for the use or occupancy of any portion of any Property,
including all amendments, supplements, modifications and assignments thereof
and all side letters or side agreements relating thereto.

     “Lease Coverage Ratio” means, as of any date of determination for
any Lease Credit Party on a combined fiscal year-to-date basis, the ratio of
(i) Net Income plus the sum of the following amounts: (a) income tax expense,
(b) all rent payable under Leases for Real Property and Improvements
(“Aggregate Rent Obligations”), (c) depreciation and amortization expense, (d)
compensation and bonuses payable to owners, (e) the annual last-in first-out
(LIFO) accounting adjustment and (f) extraordinary and other non-recurring
losses to (ii) Aggregate Rent Obligations. Lease Coverage Ratio shall be
calculated as of the last day of each calendar quarter for the calendar quarter
prior to such quarter then ending.

     “Lease Credit Party” means any tenants and guarantors, taken as a
whole, under a Lease for a Property.

     “Lenders” means the Persons listed on Schedule A 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. Unless the context otherwise
requires, the term “Lenders” includes the Swingline Lender.

-13-

 

     “Letter of Credit” means any letter of credit issued pursuant to
this Agreement.

     “Leverage Ratio” as of any date means the ratio, expressed as a
percentage, of the Total Outstanding Indebtedness as of such date to the Total
Value as of such date.

     “LIBO Rate” means, with respect to any Eurodollar Borrowing for any
Interest Period, the rate appearing on the display known as “Telerate Page
3750” (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 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 the rate
at which dollar deposits of $5,000,000 and for a maturity comparable to such
Interest Period are offered by the principal London office of the
Administrative Agent in immediately available funds in the London interbank
market at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

     “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, collectively, the Revolving Loans and the Term Loan,
or either of them.

     “Margin” means, with respect to any Competitive Loan bearing
interest at a rate based on the Adjusted LIBO Rate, the marginal rate of
interest, if any, to be added to or subtracted from the
Adjusted LIBO Rate to determine the rate of interest applicable to such
Loan, as specified by the Lender making such Loan in its related Competitive
Bid.

     “Margin Stock” means “margin stock” or “margin security” as such
terms are defined in Regulation U and Regulation X.

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

     “Material Indebtedness” means recourse Indebtedness (other than the
Loans and Letters of Credit), or obligations in respect of one or more Swap
Agreements, of any one or more of the Guarantor, the Borrower and the
Subsidiaries in an aggregate principal amount exceeding $20,000,000. For
purposes of determining Material Indebtedness, the “principal amount” of the
obligations of the Guarantor, the Borrower or any Subsidiary in respect of any
Swap Agreement at any time shall be the maximum aggregate amount (giving effect
to any netting agreements or collateral posted) that the Guarantor, the
Borrower or such Subsidiary would be required to pay if such Swap Agreement
were terminated at such time.

-14-

 

     “Material Subsidiary” means a Subsidiary of a Credit Party which
(a) owns or ground leases an Unencumbered Property or (b) contributes at least
3% of Total Value.

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

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

     “Net Income (Loss)” means, for any Person for any period, the
aggregate of net income (or loss) of such Person and its subsidiaries for such
period, determined on a consolidated basis in conformity with GAAP.

     “Net Offering Proceeds” means (i) all cash or other assets received
by the Guarantor or the Borrower as a result of the sale of common shares,
preferred shares, partnership interests, limited liability company interests,
convertible equity securities or other ownership or equity interests in the
Guarantor or the Borrower, less (ii) customary costs and discounts of issuance
paid by the Guarantor or the Borrower; provided, that Net Offering
Proceeds shall not include any cash or other assets received pursuant to a sale
of any item which may be characterized as debt at the time of such sale.

     “Net Operating Income” means, with respect to any Property or asset
for any period, the net operating income of such Property or asset for such
period determined in accordance with GAAP, excluding interest, depreciation,
amortization and income taxes and adjusted to omit the straight line treatment
of rent, so as to account for rent on a cash basis.

     “Nonrecourse Carveouts” means the personal liability of an obligor
in connection with any Indebtedness for fraud, misrepresentation,
misapplication or misappropriation of cash, waste, environmental liability,
bankruptcy filing or any other circumstances customarily excluded from
non-recourse provisions and non-recourse financing of real estate.

     “Note” or “Notes” means the Revolving Notes, the Term Notes,
any promissory notes issued to the Lenders to evidence Competitive Bid Loans
made by Lenders, the Designated Bank Notes, and any promissory notes issued to
the Swingline Lender, individually or collectively, as appropriate.

     “Obligations” means, without duplication, all of the obligations,
liabilities and indebtedness of the Credit Parties to the Lenders and the
Administrative Agent, whenever arising, under this Agreement, any Notes issued
hereunder, or any of the other Credit Documents to which a Credit Party is a
party, including without limitation the outstanding principal amount of the
Loans.

     “Other Ground Leases” means ground leases listed on Schedule
1.1(b).

     “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 9.4.

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

     “Performing Secured Notes and Leases” means notes and notes
receivable or leases held by a Consolidated Business or Joint Venture Entity
which are (i) either secured (a) by a mortgage or other interest in Real
Property or related equipment, (b) leases of related equipment or (c) by a
pledge of shares

-15-

 

or membership interests in a bankruptcy remote entity that
owns Real Property, (ii) have interest or lease payments, as applicable, that
are payable in cash, and (iii) are not more than 30 days past due or otherwise
in default.

     “Permitted Encumbrances” means:

     (a) Liens imposed by law for Taxes that are not yet due or are being
contested in compliance with SECTION 5.4;

     (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 45 days or are being contested in compliance with SECTION 5.4;

     (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 (k) of Article VII; and

     (f) easements, zoning restrictions, rights-of-way, tenant leasehold
mortgages on the tenant’s interests under a Lease where the Borrower or
any Subsidiary is the lessor, and similar encumbrances on real property
imposed by law or arising in the ordinary course of business that do not
secure any monetary obligations (other than common area, association,
utility or other similar fees) and do not materially detract from the
value of the affected property or interfere with the ordinary conduct of
business of any Credit Party or any Subsidiary;

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

     “Permitted Investments” means, subject in all cases to SECTION
5.13, Investments which are (a) unrestricted cash or Cash Equivalents, (b)
accounts receivable created, acquired or made in the ordinary course of
business and payable or dischargeable in accordance with customary trade terms,
(c) earnest money and similar deposits in respect of Properties made in the
ordinary course of business, (d) Investments (whether made directly or
indirectly through the acquisition of a Person owning such assets) in Real
Property, including Eligible Property; provided that Investments in
Construction Property shall be limited as set forth in clause (g) below, (e)
Investments by the Borrower or the Guarantor in the Subsidiaries, (f)
Investments by the Borrower or the Guarantor in Joint Ventures that own Real
Property, (g) Investments (whether made directly or indirectly through the
acquisition of a Person owning such assets) in Construction Property for which
the Adjusted Book Value does not exceed, in the aggregate at any one time, 10%
of Total Value, (h) Investments in notes or notes receivable that are secured
by mortgages or other interests in Real Property or related equipment for which
the Adjusted Book Value does not exceed, in the aggregate at any one time, 15%
of Total Value, (i) Investments in collateralized mortgage-backed securities
and (j) Investments not otherwise described in or covered by the other
subclauses of this definition, including, without limitation, loans to
officers, directors and employees, provided that (A) such Investments do not
exceed, in the aggregate at any one time, 5% of Total Value and (B) such
Investments, together with the Investments referred to in subclauses (f), (g)
and (i) above, do not exceed (in the aggregate at any one time) 20% of Total
Value.

-16-

 

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

     “Prime Rate” means the rate of interest per annum publicly
announced from time to time by JPMorgan Chase Bank as its prime rate in effect
at its principal office in New York City; each change in the Prime Rate shall
be effective from and including the date such change is publicly announced as
being effective.

     “Property” means any Real Property or personal property, plant,
building, facility, structure, equipment, general intangible, receivable, or
other asset owned or leased by any Consolidated Business or any Joint Venture
Entity.

     “Rating Agencies” means, collectively, two or more
nationally-recognized rating agencies, at least one of which must be S&P or
Moody’s.

     “Real Property” means any present and future right, title and
interest (including, without limitation, any leasehold estate) in (i) any
plots, pieces or parcels of land, including Eligible Land, (ii) any
Improvements of every nature whatsoever (the rights and interests described in
clauses (i) and (ii) above being the “Premises”), (iii) all easements, rights
of way, gores of land or any lands occupied by streets, ways, alleys, passages,
sewer rights, water courses, water rights and powers, and public places
adjoining such land, and any other interests in property constituting
appurtenances to the Premises, or which hereafter shall in any way belong,
relate or be appurtenant thereto, (iv) all hereditaments, gas, oil, minerals
(with the right to extract, sever and remove such gas, oil and minerals), and
easements, of every nature whatsoever, located in, on or benefiting the
Premises and (v) all other rights and privileges thereunto belonging or
appertaining and all extensions, additions, improvements, betterments,
renewals, substitutions and replacements to or of any of the rights and
interests described in clauses (iii) and (iv) above.

     “Register” has the meaning set forth in SECTION 9.4.

     “Regulations T, U, and X” means Regulations T, U and X,
respectively, of the Board of Governors of the Federal Reserve System (or any
successor body) as from time to time in effect and any successor to all or a
portion thereof.

     “REIT” means a domestic trust or corporation that qualifies as a
real estate investment trust under the provisions of Sections 856, et seq., of
the Code.

     “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.

     “Required Lenders” means, at any time, Lenders having Revolving
Credit Exposures, Term Loan Exposure and unused Revolver Commitments
representing at least 66 2/3% of the sum of the total Revolving Credit
Exposures, Term Loan Exposure and unused Revolver Commitments at such time;
provided that, for purposes of declaring the Loans to be due and payable
pursuant to Article VII, and for all purposes after the Loans become due and
payable pursuant to Article VII or the Revolver Commitments expire or
terminate, the outstanding Competitive Loans of the Lenders shall be included
in

-17-

 

their respective Revolving Credit Exposures in determining the Required
Lenders; and provided further, that, in the event any of the Lenders shall have
failed to fund its share of any Borrowing requested by the Borrower which such
Lender is obligated to fund under the terms of this Agreement and any such
failure has not been cured as provided in SECTION 2.7(b), then for so long as
such failure continues, “Required Lenders” means Lenders (excluding all Lenders
whose failure to fund their respective shares of such Borrowings have not been
so cured) having Revolving Credit Exposures, Term Loan Exposure and unused
Revolver Commitments representing at least 66 2/3% of the sum of the total
Revolving Credit Exposures, Term Loan Exposure and unused Revolver Commitments
of such Lenders 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 Guarantor, 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 or any option, warrant or other
right to acquire any such Equity Interests in the Borrower; provided, however,
that Restricted Payments shall not include any repurchases pursuant to any
stock repurchase plans that may be adopted by the board of trustees of the
Guarantor from time to time.

     “Revolver Commitment” means, with respect to each Lender, the
commitment of such Lender to make Revolving Loans and to acquire participations
in Letters of Credit and Swingline 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) increased from time to time
pursuant to SECTION 2.9(d), (b) reduced from time to time pursuant to SECTION
2.9 and (c) reduced or increased from time to time pursuant to assignments by
or to such Lender pursuant to SECTION 9.4. The initial amount of each Lender’s
Revolver Commitment is set forth on Schedule A, or in the Assignment and
Assumption pursuant to which such Lender shall have assumed its Revolver
Commitment, as applicable. The initial aggregate amount of the Lenders’
Revolver Commitments is $250,000,000.

     “Revolver Commitment Fee Rate” means, with respect to commitment
fees payable hereunder, the amount determined based upon the average daily
unused Revolver Commitments as a percentage of total Revolver Commitments, as
set forth below.

	 	 	 
	Average daily unused Revolver	 	 
	Commitments as percentage of total	 	 
	Revolver Commitments
	 	Revolver Commitment Fee Rate

	< 33.33%
	 	0.125%
	333.33% but < 66.67%
	 	0.175%
	3 66.67%
	 	0.225%

     “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 and its LC Exposure and Swingline Exposure at such time.

     “Revolving Loan” means a Loan made pursuant to SECTION 2.3.

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     “Revolving Loan Maturity Date” means the earlier of (a) the Initial
Revolving Loan Maturity Date or, if extended by the Borrower pursuant to
SECTION 2.10, August 20, 2008, and (b) the date of termination of the Revolver
Commitments pursuant to the terms of this Agreement.

     “Revolving Note” or “Revolving Notes” means the promissory
notes of the Borrower in favor of each of the Lenders evidencing the Revolving
Loans provided pursuant to SECTION 2.1, individually or collectively, as
appropriate, as such promissory notes may be amended, modified, supplemented,
extended, renewed or replaced from time to time and in the form of Exhibit
2.10(e)-1.

     “Secured Indebtedness” means any Indebtedness secured by a Lien
(excluding Indebtedness hereunder).

     “Solvent” means, with respect to any Person as of a particular
date, that on such date (a) such Person is able to pay its debts and other
liabilities, contingent obligations and other commitments as they mature in the
normal course of business, (b) such Person does not intend to, and does not
believe that it will, incur debts or liabilities beyond such Person’s ability
to pay as such debts and liabilities mature in their ordinary course, (c) such
Person is not engaged in a business or a transaction, and is not about to
engage in a business or a transaction, for which such Person’s assets would
constitute unreasonably small capital after giving due consideration to the
prevailing practice in the industry in which such Person is engaged or is to
engage, (d) the fair value of the assets of such Person is greater than the
total amount of liabilities, including, without limitation, contingent
liabilities, of such Person, and (e) the present fair saleable value of the
assets of such Person is not less than the amount that will be required to pay
the probable liability of such Person on its debts as they become absolute and
matured. In computing the amount of contingent liabilities at any time, it is
intended that such liabilities will be computed at the amount which, in light
of all the facts and circumstances existing at such time, represents the amount
that can reasonably be expected to become an actual or matured liability.

     “S&P” means Standard & Poor’s.

     “Statutory Reserve Rate” means a fraction (expressed as a decimal),
the numerator of which is the number one and the denominator of which is the
number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or
supplemental reserves) expressed as a decimal established by the Board to which
the Administrative Agent is subject with respect to the Adjusted LIBO Rate, for
eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in
Regulation D of the Board). Such reserve percentages shall include those
imposed pursuant to such Regulation D. Eurodollar Loans shall be deemed to
constitute eurocurrency funding and to be subject to such reserve requirements
without benefit of or credit for proration, exemptions or offsets that may be
available from time to time to any Lender under such Regulation D or any
comparable regulation. The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any reserve
percentage.

     “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.

-19-

 

     “Subsidiary” means any direct or indirect subsidiary of the
Guarantor (including the Borrower).

     “Swap Agreement” means any agreement with respect to any swap,
forward, future or derivative transaction or option or similar agreement
involving, or settled by reference to, one or more rates, currencies,
commodities, equity or debt instruments or securities, or economic, financial
or pricing indices or measures of economic, financial or pricing risk or value
or any similar transaction or any combination of these transactions;
provided that no phantom stock or similar plan providing for payments
only on account of services provided by current or former directors, officers,
employees or consultants of the Guarantor, the Borrower or the Subsidiaries
shall be a Swap Agreement.

     “Swingline Exposure” means, at any time, the aggregate principal
amount of all Swingline Loans outstanding at such time. The Swingline Exposure
of any Lender at any time shall be its Applicable Percentage of the total
Swingline Exposure at such time.

     “Swingline Lender” means collectively, JPMorgan Chase Bank and any
other lender designated by the Administrative Agent, in their capacity as
lenders of Swingline Loans hereunder.

     “Swingline Loan” means a Loan made pursuant to SECTION 2.5.

     “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 Loan made pursuant to SECTION 2.1, the
aggregate amount of which shall equal $150,000,000.

     “Term Loan Exposure” means, with respect to any Lender at any time,
the outstanding principal amount of such Lender’s portion of the Term Loan.

     “Term Loan Maturity Date” means August 20, 2009.

     “Term Note” or “Term Notes” means the promissory notes of
the Borrower in favor of each of the Lenders evidencing the Term Loan provided
pursuant to SECTION 2.1, individually or collectively, as appropriate, as such
promissory notes may be amended, modified, supplemented, extended, renewed or
replaced from time to time and in the form of Exhibit 2.10(e)-2.

     “Total Interest Expense” means, for any period, the sum, without
duplication, of (i) interest expense of the Consolidated Businesses paid during
such period and (ii) interest expense of the Consolidated Businesses accrued
and/or capitalized for such period and (iii) the portion of the interest
expense of Joint Venture Entities allocable to the Consolidated Businesses in
accordance with GAAP and paid during such period and (iv) the portion of the
interest expense of Joint Venture Entities allocable to the Consolidated
Businesses in accordance with GAAP and accrued and capitalized for such period,
in the case of each of clauses (i)-(iv) including participating interest
expense, interest in respect of Capitalized Leases and fees in connection with
letters of credit but excluding extraordinary interest expense, and net of
amortization of deferred costs associated with new financings or refinancings
of existing Indebtedness.

     “Total Outstanding Indebtedness” means, as of any date, the sum,
without duplication, of (i) the amount of Indebtedness of the Consolidated
Businesses set forth on the then most recent quarterly financial statements of
the Guarantor, prepared in accordance with GAAP, plus any additional
Indebtedness incurred (less any Indebtedness repaid, retired or forgiven) by
the Consolidated Businesses since the time of such statements that is
outstanding as of such date and (ii) the outstanding amount of Indebtedness of
Joint Venture Entities allocable in accordance with GAAP to any of the
Consolidated

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Businesses as of the time of determination and (iii) the
Contingent
Obligations of the Consolidated Businesses and, to the extent
allocable to the Consolidated Businesses in accordance with GAAP of the Joint
Venture Entities.

     “Total Recourse Secured Outstanding Indebtedness” means Total
Secured Outstanding Indebtedness under the terms of which any of the
Consolidated Businesses guarantees or is directly obligated for any portion of
such Indebtedness or interest payments thereon (other than Non-Recourse
Carve-Outs), including, without limitation, the pro rata share of such recourse
Indebtedness of Joint Venture Entities allocable to any of the Consolidated
Businesses.

     “Total Secured Outstanding Indebtedness” means, as of any date, the
portion of Total Outstanding Indebtedness that is Secured Indebtedness.

     “Total Unencumbered Value” means, as of any date, the sum, without
duplication, of each of the following items: (i) the Adjusted Book Value of
all Unencumbered Properties, plus (ii) the Adjusted Book Value of all Eligible
Properties that would otherwise qualify as Unencumbered Properties except that
the Lease Coverage Ratio for each such Eligible Property is less than 1.50 to
1.0 on a fiscal year-to-date basis for both of the preceding two fiscal
quarters (so long as such Lease Coverage Ratio is greater than 1.0 to 1.0 on a
fiscal year-to-date basis in one of the preceding two fiscal quarters), which
amount in this clause (ii) shall be limited to 10% of Total Unencumbered Value,
plus (iii) the Adjusted Book Value of all Eligible Properties that would
otherwise qualify as Unencumbered Properties except that the Lease Coverage
Ratio for each such Eligible Property cannot be calculated because the Lease
Credit Party under the Lease for such Eligible Property has not delivered
financial statements under such Lease, which amount under this clause (iii)
shall be limited to 3.5% of Total Unencumbered Value, plus (iv) the Adjusted
Book Value of all Performing Secured Notes and Leases that are not subject to
any Liens, which amount in this clause (iv) shall be limited to 15% of Total
Unencumbered Value, plus (v) the Adjusted Book Value of all Unencumbered
Construction Properties, which amount in this clause (v) shall be limited to
10% of Total Unencumbered Value; provided that (a) not more than 20% of Total
Unencumbered Value may be attributable to any single Unencumbered Property
(other than the Property known as Chauncey Ranch located in Scottsdale,
Arizona), (b) not more than 15% of Total
Unencumbered Value may be attributable to Unencumbered Properties and
Unencumbered Construction Properties located outside the United States, (c) the
weighted average remaining term for all Leases on Eligible Properties included
in clauses (i), (ii) and (iii) above shall be at least eight (8) years, and (d)
only 66?% of the Adjusted Book Value of the Unencumbered Properties and
Eligible Properties described in clauses (i), (ii) and (iii) above shall be
included in Total Unencumbered Value if such Unencumbered Property or Eligible
Property is ground leased under an Other Ground Lease instead of an Eligible
Ground Lease.

     “Total Unsecured Outstanding Indebtedness” means, as of any date,
the portion of Total Outstanding Indebtedness that is Unsecured Indebtedness.

     “Total Value” means, as of any date, the sum, without duplication,
of (i) the Adjusted Book Value of all Eligible Properties, plus (ii) the
Adjusted Book Value of Construction Property, which amount in this clause (ii)
shall be limited to 10% of Total Value, plus (iii) the Adjusted Book Value of
Performing Secured Notes and Leases, which amount in this clause (iii) shall be
limited to 10% of Total Value, plus (iv) unrestricted cash and Cash
Equivalents; provided that for all Eligible Properties, Construction Properties
and Performing Secured Notes and Leases, only the Consolidated Business’
pro-rata share of such Adjusted Book Value shall be included in Total Value.

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     “Transactions” means the execution, delivery and performance by the
Credit Parties of this Agreement and the other Credit Documents, the borrowing
of Loans, the use of the proceeds thereof and the issuance of Letters of Credit
hereunder.

     “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 Adjusted LIBO Rate, the Alternate
Base Rate or, in the case of a Competitive Loan or Borrowing, the Adjusted LIBO
Rate or a Fixed Rate.

     “Unencumbered Construction Property” means a Construction Property
that on any date of determination: (i) is wholly-owned or ground leased under
an Eligible Ground Lease, directly or indirectly, by the Borrower or the
Guarantor, (ii) is not subject (and the equity interests therein are not
subject) to any Liens other than Permitted Encumbrances and Liens on the
interest of the ground lessor of such Construction Property (a) that are
expressly subordinated to the rights of the Borrower or its Subsidiaries as
ground lessee, (b) that provide the Borrower or any Subsidiary a right to cure
any defaults by the ground lessor under the financing secured by such Lien, or
(c) whereby the holder of such Lien has waived or otherwise agreed to make such
Lien subject to the rights of the Borrower or any Subsidiary as ground lessee
and has agreed not to disturb the rights of the Borrower or its Subsidiaries as
ground lessee under the ground lease or is otherwise estopped from exercising
its rights under such Lien, and (iii) either (a) is not subject to any
Environmental Liability that would have a material adverse effect on the value
of such Property (an “Environmental Event”), as certified by an officer of the
Borrower (which certification may be based on third party reports) or (b) if
subject to an Environmental Event, an environmental indemnity has been provided
by a creditworthy entity and a remediation plan has been established for such
Property, in each case in form and substance reasonably satisfactory to the
Administrative Agent.

     “Unencumbered NOI” means, as of any date, the sum, without
duplication, of each of the following items: (i) the Net Operating Income of
all Unencumbered Properties, plus (ii) the Net Operating Income of all Eligible
Properties that would otherwise qualify as Unencumbered Properties except that
the Lease Coverage Ratio for each such Eligible Property is less than 1.50 to
1.0 on a fiscal year-to-date basis in both of the preceding two fiscal quarters
(so long as such Lease Coverage Ratio is greater than 1.0 to 1.0 on a fiscal
year-to-date basis in one of the preceding two fiscal quarters), which amount
in this clause (ii) shall be limited to 10% of Unencumbered NOI, plus (iii) the
Net Operating
Income of all Eligible Properties that would otherwise qualify as
Unencumbered Properties except that the Lease Coverage Ratio for each such
Eligible Property cannot be calculated because the Lease Credit Party under the
Lease for such Eligible Property is not required to deliver financial
statements under such Lease, which amount under this clause (iii) shall be
limited to 3.5% of Unencumbered NOI, plus (iv) the Net Operating Income of all
Performing Secured Notes and Leases that are not subject to any Liens, which
amount in this clause (iv) shall be limited to 15% of Unencumbered NOI;
provided that (a) not more than 20% of Unencumbered NOI may be attributable to
any single Unencumbered Property (other than the Property known as Chauncey
Ranch located in Scottsdale, Arizona), (b) not more than 15% of Unencumbered
NOI may be attributable to Unencumbered Properties and Unencumbered
Construction Properties located outside the United States, and (c) the weighted
average remaining term for all Leases on Eligible Properties included in
clauses (i), (ii) and (iii) above shall be at least eight (8) years.

     “Unencumbered Property” means an Eligible Property that on any date
of determination: (i) is wholly-owned or ground leased under an Eligible Ground
Lease or Other Ground Lease, directly or indirectly, by the Borrower or the
Guarantor, (ii) is not subject (and the equity interests therein are not
subject) to any Liens other than (a) Liens on the leasehold interest of the
tenant under the Lease of such Eligible Property, or Liens on the interest of
the ground lessor of such Eligible Property (x) that are expressly subordinated
to the rights of that Lenders, (y) that provide the Borrower or any Subsidiary
a right to cure any defaults thereunder, or (z) whereby the holder of such Lien
has waived or otherwise

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agreed to make such Lien subject to the rights of the
Borrower or any Subsidiary as ground lessee and has agreed not to disturb the
rights of the Borrower or its Subsidiaries as ground lessee under the ground
lease or is otherwise estopped from exercising its rights under such Lien, and
(b) Permitted Encumbrances, (iii) either (a) is not subject to any
Environmental Event, as certified by an officer of the Borrower (which
certification may be based on third party reports) or (b) if subject to an
Environmental Event, an environmental indemnity has been provided by a
creditworthy entity and a remediation plan has been established for such
Property, in each case in form and substance reasonably satisfactory to the
Administrative Agent, (iv) is subject to an effective Lease with an operator of
automotive dealerships or other automotive-related businesses as the tenant, no
event of default shall have occurred and be continuing under such Lease, and
such tenant shall not be subject to any bankruptcy, insolvency, reorganization
or similar proceedings that (x) has continued undismissed for a period of 90
days or more or (y) has resulted in the rejection of such Lease, and (v) either
(a) the Lease Coverage Ratio of the Lease Credit Party under the Lease for such
Property shall be greater than or equal to 1.5 to 1.0 on a fiscal year-to-date
basis for one of the preceding two fiscal quarters or (b) a Lease Credit Party
is an automobile manufacturer with a corporate credit rating of BB+ or better
from Moody’s or Ba1 or better from S&P, or is a subsidiary of an automobile
manufacturer with such rating.

     “Unsecured Indebtedness” means any Indebtedness not secured by a
Lien, including any Indebtedness hereunder.

     “Unsecured Interest Expense” means, for any period, Total Interest
Expense attributable to the Total Unsecured Outstanding Indebtedness for such
period.

     “Variable Rate Leases” means a Lease on which the monthly lease
payments are calculated based upon an applicable floating interest rate
(typically the LIBO Rate) plus the spread specified in such Lease.

     “wholly-owned Subsidiary” means, with respect to any Person, at any
date, any subsidiary of such Person of which 100% of the outstanding shares of
capital stock or other equity interests having ordinary voting power is at the
time, directly or indirectly, owned by such Person.

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

     SECTION 1.3. 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

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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 1.4. 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 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
2.1. Loans.

     (a) Revolver 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 Revolver Commitment or
(b) the sum of the total Revolving Credit Exposures plus the aggregate
principal amount of outstanding Competitive Loans exceeding the total
Revolver Commitments. Within the foregoing limits and subject to the
terms and conditions set forth herein, the Borrower may borrow,
prepay and reborrow Revolving Loans.

     (b) Term Loan. Subject to the terms and conditions set forth
herein, each Lender agrees to lend to the Borrower on the Effective Date
such Lender’s pro rata share of the Term Loan, as further set forth on
Schedule A. No amount repaid with respect to the Term Loan may be
reborrowed.

     SECTION 2.2. Loans and Borrowings. (a) Each Revolving Loan shall
be made as part of a Revolving Borrowing consisting of Revolving Loans made by
the Lenders ratably in accordance with their respective Revolver Commitments.
Each Competitive Loan shall be made in accordance with the procedures set forth
in SECTION 2.4. 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 Revolver Commitments and Competitive Bids 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 2.14, (i) each Revolving Borrowing and Term
Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as
the Borrower may request in accordance herewith, and (ii) each
Competitive Borrowing shall be comprised entirely of Eurodollar Loans or
Fixed Rate Loans as the Borrower may request in accordance herewith.
Each Swingline Loan shall be an ABR Loan. 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;

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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
Revolving Borrowing or Eurodollar Term Borrowing, such Borrowing shall be
in an aggregate amount that is not less than $3,000,000. At the time
that each ABR Revolving Borrowing or ABR Term Borrowing is made, such
Borrowing shall be in an aggregate amount that is not less than
$1,000,000; provided that an ABR Revolving Borrowing may be in an
aggregate amount that is equal to the entire unused balance of the total
Revolver Commitments or that is required to finance the reimbursement of
an LC Disbursement as contemplated by SECTION 2.6(e). Each Competitive
Borrowing shall be in an aggregate amount that is an integral multiple of
$1,000,000 and not less than $5,000,000. Each Swingline Loan shall be in
an amount that is not less than $1,000,000. Borrowings of more than one
Type and Class may be outstanding at the same time.

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

     SECTION 2.3. Requests for Revolving Borrowings and Term Borrowing.
To request a Revolving Borrowing or the Term Borrowing (on the Effective Date),
the Borrower shall notify the Administrative Agent of such request by telephone
(a) in the case of a Eurodollar Borrowing, not later than 11:00 a.m., New York
City time, three Business Days before the date of the proposed Borrowing or (b)
in the case of an ABR Borrowing, not later than 11:00 a.m., New York City time,
one Business Day before the date of the proposed Borrowing; provided
that any such notice of an ABR Revolving Borrowing to finance the reimbursement
of (i) an LC Disbursement as contemplated by SECTION 2.6(e) or (ii) a Swingline
Loan as contemplated by SECTION 2.5(c) may be given not later than 10:00 a.m.,
New York City time, on the date of the proposed Borrowing. Each such
telephonic Borrowing Request
shall be irrevocable and shall be confirmed promptly by hand delivery or
telecopy to the Administrative Agent of a written Borrowing Request in the form
of Exhibit 2.3 and signed by the Borrower. Each such Borrowing Request
shall be accompanied by the officer’s certificate required by SECTION 6.1(j).
Each such telephonic and written Borrowing Request shall specify the following
information in compliance with SECTION 2.2:

     (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 2.7.

If no election as to the Type of Revolving Borrowing or Term Borrowing is
specified, then the requested Revolving Borrowing or Term Borrowing shall be an
ABR Borrowing. If no Interest Period is specified

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with respect to any
requested Eurodollar Revolving Borrowing or Eurodollar Term 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 2.4. Competitive Bid Procedure. (a) Subject to the terms
and conditions set forth herein, from time to time during the Availability
Period so long as the Borrower maintains at least two (2) Investment Grade Debt
Ratings (one (1) of which must be from Moody’s or S&P) the Borrower may request
Competitive Bids and may (but shall not have any obligation to) accept
Competitive Bids and borrow Competitive Loans; provided that (i) the sum
of the total Revolving Credit Exposures plus the aggregate principal amount of
outstanding Competitive Loans at any time shall not exceed the total Revolver
Commitments and (ii) after giving effect to the borrowing of such Competitive
Loans, the aggregate principal amount of the outstanding Competitive Loans
shall not exceed 50% of the total Revolver Commitments. To request Competitive
Bids, the Borrower shall notify the Administrative Agent of such request by
telephone, in the case of a Eurodollar Borrowing, not later than 11:00 a.m.,
New York City time, four Business Days before the date of the proposed
Borrowing and, in the case of a Fixed Rate Borrowing, not later than 10:00
a.m., New York City time, one Business Day before the date of the proposed
Borrowing; provided that the Borrower may submit up to (but not more
than) two (2) Competitive Bid Requests in any thirty (30) day period, and
provided further that each Competitive Bid Request may solicit
Competitive Bids for up to three different Interest Periods. Each such
telephonic Competitive Bid Request shall be confirmed promptly by hand delivery
or telecopy to the Administrative Agent of a written Competitive Bid Request in
the form of Exhibit 2.4(a) and signed by the Borrower. Each such
Competitive Bid Request shall be accompanied by the officer’s certificate
required by SECTION 6.1(j). Each such telephonic and written Competitive Bid
Request shall specify the following information in compliance with SECTION 2.2:

     (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 a Eurodollar Borrowing
or a Fixed Rate Borrowing;

     (iv) the Interest Period(s) to be applicable to such
Borrowing, 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 2.7.

Promptly following receipt of a Competitive Bid Request in accordance with this
Section, the Administrative Agent shall notify the Lenders of the details
thereof by telecopy, inviting the Lenders to submit Competitive Bids.

     (b) Each Lender may (but shall not have any obligation to) make one
or more Competitive Bids to the Borrower in response to a Competitive Bid
Request. Each Competitive Bid by a Lender must be substantially in the
form of Exhibit 2.4(b) and must be received by the Administrative
Agent by telecopy, in the case of a Eurodollar Competitive Borrowing, not
later than 9:30 a.m., New York City time, three Business Days before the
proposed date of such Competitive Borrowing, and in the case of a Fixed
Rate Borrowing, not later than 9:30 a.m., New York City time, on the
proposed date of such Competitive Borrowing. Competitive Bids that do

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not conform substantially to Exhibit 2.4(b) may be rejected by the
Administrative Agent, and the Administrative Agent shall notify the
applicable Lender as promptly as practicable. Competitive Loans to be
funded pursuant to a Competitive Bid may, as provided in SECTION 9.4(e),
be funded by a Lender’s Designated Bank. A Lender making a Competitive
Bid may, but shall not be required to, specify in its Competitive Bid
whether the related Competitive Loans are intended to be funded by such
Lender’s Designated Bank, as provided in SECTION 9.4(e). Each
Competitive Bid shall specify (i) the identity of the Lender and the
contact person at such Lender for such Competitive Bid, (ii) the
principal amount (which shall be a minimum of $5,000,000 and an integral
multiple of $1,000,000 and which may equal the entire principal amount of
the Competitive Borrowing requested by the Borrower) of the Competitive
Loan or Loans that the Lender is willing to make, (ii) the Competitive
Bid Rate or Rates at which the Lender is prepared to make such Loan or
Loans (expressed as a percentage rate per annum in the form of a decimal
to no more than four decimal places) and (iii) the Interest Period
applicable to each such Loan and the last day thereof.

     (c) The Administrative Agent shall promptly notify the Borrower by
telecopy of the Competitive Bid Rate and the principal amount specified
in each Competitive Bid and the identity of the Lender that shall have
made such Competitive Bid. A Lender who is notified that it has been
selected to make a Competitive Loan may designate its Designated Bank (if
any) to fund such Competitive Loan on its behalf, as described in SECTION
9.4(e). Any Designated Bank which funds a Competitive Loan shall on and
after the time of such funding become the obligee in respect of such
Competitive Loan and be entitled to receive payment thereof when due.

     (d) Subject only to the provisions of this paragraph, the Borrower
may accept or reject any Competitive Bid. The Borrower shall notify the
Administrative Agent by telephone, confirmed by telecopy in a form
approved by the Administrative Agent, whether and to what extent it has
decided to accept or reject each Competitive Bid, in the case of a
Eurodollar Competitive Borrowing, not later than 10:30 a.m., New York
City time, three Business Days before the date of the proposed
Competitive Borrowing, and in the case of a Fixed Rate
Borrowing, not later than 10:30 a.m., New York City time, on the
proposed date of the Competitive Borrowing; provided that (i) the
failure of the Borrower to give such notice shall be deemed to be a
rejection of each Competitive Bid, (ii) the Borrower shall not accept a
Competitive Bid made at a particular Competitive Bid Rate for a
particular Interest Period if the Borrower rejects a Competitive Bid made
at a lower Competitive Bid Rate for the applicable Interest Period, (iii)
the aggregate amount of the Competitive Bids accepted by the Borrower
shall not exceed the aggregate amount of the requested Competitive
Borrowing specified in the related Competitive Bid Request, (iv) to the
extent necessary to comply with clause (iii) above, the Borrower may
accept Competitive Bids at the same Competitive Bid Rate in part, which
acceptance, in the case of multiple Competitive Bids at such Competitive
Bid Rate, shall be made pro rata in accordance with the amount of each
such Competitive Bid, rounded to the nearest $1,000,000 increment, and
(v) except pursuant to clauses (iii) and (iv) above, no Competitive Bid
shall be accepted for a Competitive Loan unless such Competitive Loan is
in a minimum principal amount of $5,000,000 and an integral multiple of
$1,000,000; provided further that if a Competitive Loan
must be in an amount less than $5,000,000 because of the provisions of
clauses (iii) and (iv) above, such Competitive Loan may be for a minimum
of $1,000,000 or any integral multiple thereof, and in calculating the
pro rata allocation of acceptances of portions of multiple Competitive
Bids at a particular Competitive Bid Rate pursuant to clause (iv) the
amounts shall be rounded to integral multiples of $1,000,000 in a manner
determined by the Borrower. A notice given by the Borrower pursuant to
this paragraph shall be irrevocable.

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     (e) The Administrative Agent shall promptly notify each bidding
Lender by telecopy whether or not its Competitive Bid has been accepted
(and, if so, the amount and Competitive Bid Rate so accepted), and each
successful bidder will thereupon become bound, subject to the terms and
conditions hereof, to make the Competitive Loan in respect of which its
Competitive Bid has been accepted.

     (f) If the Administrative Agent, in its capacity as Lender, shall
elect to submit a Competitive Bid in its capacity as a Lender, it shall
submit such Competitive Bid directly to the Borrower at least one quarter
of an hour earlier than the time by which the other Lenders are required
to submit their Competitive Bids to the Administrative Agent pursuant to
paragraph (b) of this Section.

     SECTION 2.5. Swingline Loans. (a) Subject to the terms and
conditions set forth herein, the Swingline Lender agrees to make Swingline
Loans to the Borrower from time to time during the Availability Period, in an
aggregate principal amount at any time outstanding that will not result in (i)
the aggregate principal amount of outstanding Swingline Loans exceeding
$40,000,000 or (ii) the sum of the total Revolving Credit Exposures plus the
aggregate principal amount of outstanding Competitive Loans exceeding the total
Revolver Commitments; provided that the Swingline Lender shall not be
required to make a Swingline Loan to refinance an outstanding Swingline Loan.
Within the foregoing limits and subject to the terms and conditions set forth
herein, the Borrower may borrow, prepay and reborrow Swingline Loans.

     (b) To request a Swingline Loan, the Borrower shall notify the
Administrative Agent of such request by telephone (confirmed by
telecopy), not later than 2:00 pm, New York City time, on the day of a
proposed Swingline Loan. Each such notice shall be irrevocable and shall
specify the requested date (which shall be a Business Day and may be the
same day as the request) and amount of the requested Swingline Loan. The
Administrative Agent will promptly advise the Swingline Lender of any
such notice received from the Borrower. The Swingline Lender shall make
each Swingline Loan available to the Borrower by means of a credit to the
general deposit account of the Borrower with the Swingline Lender
(or, in the case of a Swingline Loan made to finance the reimbursement of
an LC Disbursement as provided in SECTION 2.6(e), by remittance to the
Issuing Bank) by 3:00 p.m., New York City time, on the requested date of
such Swingline Loan.

     (c) The Swingline Lender may by written notice given to the
Administrative Agent not later than 10:00 a.m., New York City time, on
any Business Day require the Lenders to acquire participations on such
Business Day in all or a portion of the Swingline Loans outstanding and
unpaid in accordance with SECTION 2.10(a). Such notice shall specify the
aggregate amount of Swingline Loans in which Lenders will participate.
Promptly upon receipt of such notice, the Administrative Agent will give
notice thereof to each Lender, specifying in such notice such Lender’s
Applicable Percentage of such Swingline Loan or Loans. Each Lender
hereby absolutely and unconditionally agrees, upon receipt of notice as
provided above, to pay to the Administrative Agent, for the account of
the Swingline Lender, such Lender’s Applicable Percentage of such
Swingline Loan or Loans. Each Lender acknowledges and agrees that its
obligation to acquire participations in Swingline Loans pursuant to this
paragraph is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including the occurrence and continuance of a
Default or reduction or termination of the Revolver Commitments, and that
each such payment shall be made without any offset, abatement,
withholding or reduction whatsoever. Each Lender shall comply with its
obligation under this paragraph by wire transfer of immediately available
funds, in the same manner as provided in SECTION 2.7 with respect to
Loans made by such Lender (and SECTION 2.7 shall apply, mutatis
mutandis, to the payment

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obligations of the Lenders), and the
Administrative Agent shall promptly pay to the Swingline Lender the
amounts so received by it from the Lenders. The Administrative Agent
shall notify the Borrower of any participations in any Swingline Loan
acquired pursuant to this paragraph, and thereafter payments in respect
of such Swingline Loan shall be made to the Administrative Agent and not
to the Swingline Lender. Any amounts received by the Swingline Lender
from the Borrower (or other party on behalf of the Borrower) in respect
of a Swingline Loan after receipt by the Swingline Lender of the proceeds
of a sale of participations therein shall be promptly remitted to the
Administrative Agent; any such amounts received by the Administrative
Agent shall be promptly remitted by the Administrative Agent to the
Lenders that shall have made their payments pursuant to this paragraph
and to the Swingline Lender, as their interests may appear; provided that
any such payment so remitted shall be repaid to the Swingline Lender or
to the Administrative Agent, as applicable, if and to the extent such
payment is required to be refunded to the Borrower for any reason. The
purchase of participations in a Swingline Loan pursuant to this paragraph
shall not relieve the Borrower of any default by the Borrower in the
payment thereof.

     SECTION 2.6. Letters of Credit. (a) General. Subject to
the terms and conditions set forth herein, the Borrower may request the
issuance of Letters of Credit for its own account, in a form reasonably
acceptable to the Administrative Agent and the Issuing Bank, at any time and
from time to time during the Availability Period. In the event of any
inconsistency between the terms and conditions of this Agreement and the terms
and conditions of any form of letter of credit application or other agreement
submitted by the Borrower to, or entered into by the Borrower with, the Issuing
Bank relating to any Letter of Credit, the terms and conditions of this
Agreement shall control.

     (b) Notice of Issuance, Amendment, Renewal, Extension; Certain
Conditions. To request the issuance of a Letter of Credit (or the
amendment, renewal or extension of an outstanding Letter of Credit), the
Borrower shall hand deliver or telecopy (or transmit by electronic
communication, if arrangements for doing so have been approved by the
Issuing Bank) to the Issuing Bank and the Administrative Agent (within
four Business Days in
advance of the requested date of issuance, amendment, renewal or
extension) a notice requesting the issuance of a Letter of Credit, or
identifying the Letter of Credit to be amended, renewed or extended, and
specifying the date of issuance, amendment, renewal or extension (which
shall be a Business Day), the date on which such Letter of Credit is to
expire (which shall comply with paragraph (c) of this Section), the
amount of such Letter of Credit, the name and address of the beneficiary
thereof and such other information as shall be necessary to prepare,
amend, renew or extend such Letter of Credit. Each such notice shall be
accompanied by the officer’s certificate required by SECTION 6.1(j). The
Administrative Agent shall provide copies of such officer’s certificate
to each Lender promptly after receipt thereof; provided, that failure of
the Administrative Agent to provide such certificate shall not otherwise
excuse the Issuing Bank from its obligations to issue the Letter of
Credit pursuant to this SECTION 2.6. If requested by the Issuing Bank,
the Borrower also shall submit a letter of credit application on the
Issuing Bank’s standard form in connection with any request for a Letter
of Credit. A Letter of Credit shall be issued, amended, renewed or
extended only if (and upon issuance, amendment, renewal or extension of
each Letter of Credit the Borrower shall be deemed to represent and
warrant that), after giving effect to such issuance, amendment, renewal
or extension (i) the LC Exposure shall not exceed $25,000,000 and (ii)
the sum of the total Revolving Credit Exposures plus the aggregate
principal amount of outstanding Competitive Loans shall not exceed the
total Revolver Commitments.

     (c) Expiration Date. Each Letter of Credit shall expire at
or prior to the close of business on the earlier of (i) the date one year
after the date of the issuance of such Letter of Credit (or, in the case
of any renewal or extension thereof, one year after such renewal or

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extension) and (ii) the date that is five Business Days prior to the
Revolving Loan Maturity Date; provided, that any Letter of Credit
with a one-year term may provide for the automatic renewal thereof for
additional one-year periods, so long as such automatic renewal does not
extend the maturity date of any such Letter of Credit beyond the date
that is five Business Days prior to the Revolving Loan Maturity Date.

     (d) Participations. By the issuance of a Letter of Credit
(or an amendment to a Letter of Credit increasing the amount thereof) and
without any further action on the part of the Issuing Bank or the
Lenders, the Issuing Bank hereby grants to each Lender, and each Lender
hereby acquires from the Issuing Bank, a participation in such Letter of
Credit equal to such Lender’s Applicable Percentage of the aggregate
amount available to be drawn under such Letter of Credit. In
consideration and in furtherance of the foregoing, each Lender hereby
absolutely and unconditionally agrees to pay to the Administrative Agent,
for the account of the Issuing Bank, such Lender’s Applicable Percentage
of each LC Disbursement made by the Issuing Bank and not reimbursed by
the Borrower on the date due as provided in paragraph (e) of this
Section, or of any reimbursement payment required to be refunded to the
Borrower for any reason. Each Lender acknowledges and agrees that its
obligation to acquire participations pursuant to this paragraph in
respect of Letters of Credit is absolute and unconditional and shall not
be affected by any circumstance whatsoever, including any amendment,
renewal or extension of any Letter of Credit or the occurrence and
continuance of a Default or reduction or termination of the Revolver
Commitments, and that each such payment shall be made without any offset,
abatement, withholding or reduction whatsoever. Notwithstanding anything
to the contrary set forth here, the aggregate amount to be paid by any
Lender with respect to any drawing under the Letter of Credit (whether as
a payment pursuant to this SECTION 2.6(d) of a Loan pursuant to SECTION
2.3) shall not exceed its Applicable Percentage of such drawing.

     (e) Reimbursement. If the Issuing Bank shall make any LC
Disbursement in respect of a Letter of Credit, the Borrower shall
reimburse such LC Disbursement by paying to
the Administrative Agent an amount equal to such LC Disbursement not
later than 12:00 noon, New York City time, on the date that such LC
Disbursement is made, if the Borrower shall have received notice of such
LC Disbursement prior to 10:00 a.m., New York City time, on such date,
or, if such notice has not been received by the Borrower prior to such
time on such date, then not later than 12:00 noon, New York City time, on
(i) the Business Day that the Borrower receives such notice, if such
notice is received prior to 10:00 a.m., New York City time, on the day of
receipt, or (ii) the Business Day immediately following the day that the
Borrower receives such notice, if such notice is not received prior to
such time on the day of receipt; provided that the Borrower may,
subject to the conditions to borrowing set forth herein, request in
accordance with SECTION 2.3 that such payment be financed with an ABR
Revolving Borrowing or Swingline Borrowing in an equivalent amount and,
to the extent so financed, the Borrower’s obligation to make such payment
shall be discharged and replaced by the resulting ABR Revolving Borrowing
or Swingline Borrowing, and if such Borrowing Request is timely made,
such payment financed by the ABR Revolving Borrowing or Swingline
Borrowing shall be deemed to have been made in a timely manner under this
SECTION 2.6(e) and the Borrower shall not be in default of its
obligations under this SECTION 2.6(e) to reimburse the LC Disbursement by
the times set forth above. If the Borrower fails to make such payment
when due, the Administrative Agent shall notify each Lender of the
applicable LC Disbursement, the payment then due from the Borrower in
respect thereof and such Lender’s Applicable Percentage thereof.
Promptly following receipt of such notice, each Lender shall pay to the
Administrative Agent its Applicable Percentage of the payment then due
from the Borrower, in the same manner as provided in SECTION 2.7 with
respect to Loans made by such Lender (and SECTION 2.7 shall apply,
mutatis mutandis, to the payment obligations of the
Lenders), and the Administrative Agent shall promptly pay to the

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Issuing
Bank the amounts so received by it from the Lenders. Promptly following
receipt by the Administrative Agent of any payment from the Borrower
pursuant to this paragraph, the Administrative Agent shall distribute
such payment to the Issuing Bank or, to the extent that Lenders have made
payments pursuant to this paragraph to reimburse the Issuing Bank, then
to such Lenders and the Issuing Bank as their interests may appear. Any
payment made by a Lender pursuant to this paragraph to reimburse the
Issuing Bank for any LC Disbursement (other than the funding of ABR
Revolving Loans or Swingline Loan as contemplated above) shall not
constitute a Loan and shall not relieve the Borrower of its obligation to
reimburse such LC Disbursement.

     (f) Obligations Absolute. The Borrower’s obligation to
reimburse LC Disbursements as provided in paragraph (e) of this Section
shall be absolute, unconditional and irrevocable, and shall be performed
strictly in accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of (i) any lack of validity or
enforceability of any Letter of Credit or this Agreement, or any term or
provision therein, (ii) any draft or other document presented under a
Letter of Credit proving to be forged, fraudulent or invalid in any
respect or any statement therein being untrue or inaccurate in any
respect, (iii) payment by the Issuing Bank under a Letter of Credit
against presentation of a draft or other document that does not comply
with the terms of such Letter of Credit, or (iv) any other event or
circumstance whatsoever, whether or not similar to any of the foregoing,
that might, but for the provisions of this Section, constitute a legal or
equitable discharge of, or provide a right of setoff against, the
Borrower’s obligations hereunder. Neither the Administrative Agent, the
Lenders nor the Issuing Bank, nor any of their Related Parties, shall
have any liability or responsibility by reason of or in connection with
the issuance or transfer of any Letter of Credit or any payment or
failure to make any payment thereunder (irrespective of any of the
circumstances referred to in the preceding sentence), or any error,
omission, interruption, loss or delay in transmission or delivery of any
draft, notice or other communication under or relating to any Letter of
Credit (including any document required to make a drawing thereunder),
any error in interpretation of technical terms
or any consequence arising from causes beyond the control of the
Issuing Bank; provided that the foregoing shall not be construed
to excuse the Issuing Bank from liability to the Borrower to the extent
of any direct damages (as opposed to consequential damages, claims in
respect of which are hereby waived by the Borrower to the extent
permitted by applicable law) suffered by the Borrower that are caused by
the Issuing Bank’s failure to exercise care when determining whether
drafts and other documents presented under a Letter of Credit comply with
the terms thereof. The parties hereto expressly agree that, in the
absence of gross negligence or willful misconduct on the part of the
Issuing Bank (as finally determined by a court of competent
jurisdiction), the Issuing Bank shall be deemed to have exercised care in
each such determination. In furtherance of the foregoing and without
limiting the generality thereof, the parties agree that, with respect to
documents presented which appear on their face to be in substantial
compliance with the terms of a Letter of Credit, the Issuing Bank may, in
its sole discretion, either accept and make payment upon such documents
without responsibility for further investigation, regardless of any
notice or information to the contrary, or refuse to accept and make
payment upon such documents if such documents are not in strict
compliance with the terms of such Letter of Credit.

     (g) Disbursement Procedures. The Issuing Bank shall,
promptly following its receipt thereof, examine all documents purporting
to represent a demand for payment under a Letter of Credit. The Issuing
Bank shall promptly notify the Administrative Agent and the Borrower by
telephone (confirmed by telecopy) of such demand for payment and whether
the Issuing Bank has made or will make an LC Disbursement thereunder;
provided that any failure to give or delay in giving such notice
shall not relieve the Borrower of its obligation to reimburse the Issuing
Bank and the Lenders with respect to any such LC Disbursement nor shall
the Issuing Bank have any liability whatsoever to the Borrower or the
Lenders for any failure to give any such notice.

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     (h) Interim Interest. If the Issuing Bank shall make any LC
Disbursement, then, unless the Borrower shall reimburse such LC
Disbursement in full on the date such LC Disbursement is made, the unpaid
amount thereof shall bear interest, for each day from and including the
date such LC Disbursement is made to but excluding the date that the
Borrower reimburses such LC Disbursement, at the rate per annum then
applicable to ABR Revolving Loans; provided that, if the Borrower
fails to reimburse such LC Disbursement when due pursuant to paragraph
(e) of this Section, then SECTION 2.13(d) shall apply. Interest accrued
pursuant to this paragraph shall be for the account of the Issuing Bank,
except that interest accrued on and after the date of payment by any
Lender pursuant to paragraph (d) or (e) of this Section to reimburse the
Issuing Bank shall be for the account of such Lender to the extent of
such payment.

     (i) Replacement of the Issuing Bank. The Issuing Bank may be
replaced at any time by written agreement among the Borrower, the
Administrative Agent, the replaced Issuing Bank and the successor Issuing
Bank. The Administrative Agent shall notify the Lenders of any such
replacement of the Issuing Bank. At the time any such replacement shall
become effective, the Borrower shall pay all unpaid fees accrued for the
account of the replaced Issuing Bank pursuant to SECTION 2.12(b). From
and after the effective date of any such replacement, (i) the successor
Issuing Bank shall have all the rights and obligations of the Issuing
Bank under this Agreement with respect to Letters of Credit to be issued
thereafter and (ii) references herein to the term “Issuing Bank” shall be
deemed to refer to such successor or to any previous Issuing Bank, or to
such successor and all previous Issuing Banks, as the context shall
require. After the replacement of an Issuing Bank hereunder, the
replaced Issuing Bank shall remain a party hereto and shall continue to
have all the rights and obligations of an Issuing Bank under this
Agreement
with respect to Letters of Credit issued by it prior to such
replacement, but shall not be required to issue additional Letters of
Credit.

     (j) Cash Collateralization. If any Event of Default shall
occur and be continuing, on the Business Day that the Borrower receives
notice from the Administrative Agent or the Required Lenders (or, if the
maturity of the Loans has been accelerated, Lenders with LC Exposure
representing greater than 51% of the total LC Exposure) demanding the
deposit of cash collateral pursuant to this paragraph, the Borrower shall
deposit in an account with the Administrative Agent, in the name of the
Administrative Agent and for the benefit of the Lenders, an amount in
cash equal to the LC Exposure as of such date plus any accrued and unpaid
interest thereon; provided that the obligation to deposit such
cash collateral shall become effective immediately, and such deposit
shall become immediately due and payable, without demand or other notice
of any kind, upon the occurrence of any Event of Default with respect to
the Guarantor or the Borrower described in clause (h) or (i) of Article
VII. Such deposit shall be held by the Administrative Agent as
collateral for the payment and performance of the obligations of the
Borrower under this Agreement. The Administrative Agent shall have
exclusive dominion and control, including the exclusive right of
withdrawal, over such account. Other than any interest earned on the
investment of such deposits, which investments may be made in Cash
Equivalents at the option and sole discretion of the Administrative Agent
and at the Borrower’s risk and expense, such deposits shall not bear
interest. Interest or profits, if any, on such investments shall
accumulate in such account. Moneys in such account shall be applied by
the Administrative Agent to reimburse the Issuing Bank for LC
Disbursements for which it has not been reimbursed and, to the extent not
so applied, shall be held for the satisfaction of the reimbursement
obligations of the Borrower for the LC Exposure at such time or, if the
maturity of the Loans has been accelerated (but subject to the consent of
Lenders with LC Exposure representing greater than 51% of the total LC
Exposure), be applied to satisfy other obligations of the Borrower under
this Agreement. If the Borrower is required to provide an amount of cash

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collateral hereunder as a result of the occurrence of an Event of
Default, such amount (to the extent not applied as aforesaid) shall be
returned to the Borrower within three Business Days after all Events of
Default have been cured or waived.

     SECTION 2.7. 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 noon (or 1 p.m. in the case of
participations in Swingline Loans), New York City time, to the account of the
Administrative Agent most recently designated by it for such purpose by notice
to the Lenders; provided that Swingline Loans shall be made as provided
in SECTION 2.5. 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 or
Competitive Bid Request; provided that ABR Revolving Loans and Swingline
Loans made to finance the reimbursement of an LC Disbursement as provided in
SECTION 2.6(e) shall be remitted by the Administrative Agent to the Issuing
Bank.

     (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 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 the Loan. If such Lender pays
such amount to the Administrative Agent, then such amount shall
constitute such Lender’s Loan included in such Borrowing and the interest
rate applicable to such Borrowing shall be as requested by the Borrower
in the applicable Borrowing Request.

     SECTION 2.8. Interest Elections. (a) Each Revolving Borrowing and
the Term 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. This SECTION 2.8
shall not apply to Competitive Borrowings or Swingline Borrowings, which may
not be converted or continued.

     (b) To make an election pursuant to this Section, the Borrower shall
notify the Administrative Agent of such election by telephone by the time
that a Borrowing Request would be required under SECTION 2.3 if the
Borrower were requesting a Revolving Borrowing or the Term Borrowing of
the Type resulting from such election to be made on the effective date of
such election. Each such telephonic Interest Election Request shall be
irrevocable and shall be confirmed promptly by hand delivery or telecopy
to the Administrative Agent of a written Interest Election Request in the
form of Exhibit 2.8(b) and signed by the Borrower.

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     (c) Each telephonic and written Interest Election Request shall
specify the following information in compliance with SECTION 2.2:

     (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

     (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 Revolving 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 converted to an ABR Borrowing. 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 Revolving Borrowing may be converted to
or continued as a Eurodollar Borrowing and (ii) unless repaid, each
Eurodollar Revolving Borrowing shall be converted to an ABR Borrowing at
the end of the Interest Period applicable thereto.

     SECTION 2.9. Termination and Reduction of Revolver Commitments;
Increase of Revolver Commitments. (a) Unless previously terminated, the
Revolver Commitments shall terminate on the Revolving Loan Maturity Date.

     (b) The Borrower may at any time terminate, or from time to time
reduce, the Revolver Commitments; provided that (i) each reduction
of the Revolver Commitments shall be in an amount that is an integral
multiple of $1,000,000 and not less than $5,000,000, (ii) the Borrower
shall not terminate or reduce the Revolver Commitments if, after giving
effect to any concurrent prepayment of the Loans in accordance with
SECTION 2.11, the sum of the Revolving Credit Exposures plus the
aggregate principal amount of outstanding Competitive Loans would exceed
the total Revolver Commitments, and (iii) unless the Revolver Commitments
are reduced to zero, no reduction shall be made which would reduce the
Revolver Commitments to an amount less than $100,000,000. No election by
the Borrower to reduce the Revolver Commitments at any time in accordance
with this SECTION 2.9(b), other than a

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reduction to zero, shall prevent
the Borrower from exercising its right to increase the Revolver
Commitments pursuant to SECTION 2.9(d).

     (c) The Borrower shall notify the Administrative Agent of any
election to terminate or reduce the Revolver Commitments under paragraph
(b) of this Section at least three 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 Revolver
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 Revolver
Commitments shall be permanent. Each reduction of the Revolver
Commitments shall be made ratably among the Lenders in accordance with
their respective Revolver Commitments.

     (d) Unless a Default or an Event of Default has occurred and is
continuing, the Borrower, by written notice to the Administrative Agent,
may request on up to four occasions during the term of this Agreement
that the Revolver Commitments be increased by an amount not less than
$25,000,000 per request and not more than $100,000,000 in the aggregate
(such that the total Revolver Commitments after all such increases shall
never exceed $350,000,000); provided that for any such request (a) the
Borrower shall not have requested the extension of the Revolving Loan
Maturity Date pursuant to SECTION 2.10(f), (b) any Lender which is a
party to this
Agreement prior to such request for increase, at its sole
discretion, may elect to increase its Revolver Commitment, but shall not
have any obligation to so increase its Revolver Commitment, and (c) in
the event that a Lender does not elect to increase its Revolver
Commitment, J.P. Morgan Securities Inc. shall use commercially reasonable
efforts to locate additional lenders (which qualify as Eligible
Assignees) reasonably acceptable to the Administrative Agent willing to
hold commitments for the requested increase. In the event that Lenders
commit to any such increase, (i) the Revolver Commitments of the
committed Lenders shall be increased, (ii) the Applicable Percentage of
each of the Lenders shall be adjusted according to the reallocated
Applicable Percentages (or, in the case of a new lender not previously
party hereto, added to Schedule A and the Borrower shall make such
borrowings and repayments as shall be necessary to effect a reallocation
of the Revolving Loans, (iii) if requested by any Lender making an
additional or new commitment, new or replacement notes shall be issued,
and (iv) other changes shall be made by way of supplement, amendment or
restatement of any Credit Document as may be necessary or desirable to
reflect the aggregate amount, if any, by which Lenders have agreed to
increase their respective Revolver Commitments or any other lenders
(which qualify as Eligible Assignees) have agreed to make new commitments
pursuant to this SECTION 2.9(d), in each case notwithstanding anything in
SECTION 9.2(b) to the contrary, without the consent of any Lender other
than those Lenders increasing their Revolver Commitments. The fees
payable by the Borrower upon any such increase in the Revolver
Commitments shall be agreed upon by J.P. Morgan Securities Inc. and the
Borrower at the time of such increase. Notwithstanding the foregoing,
nothing in this SECTION 2.9(d) shall constitute or be deemed to
constitute an agreement by any Lender to increase its Revolver Commitment
hereunder.

Notwithstanding the foregoing, an increase in the aggregate amount of the
Revolver Commitments shall be effective only if (i) no Default shall have
occurred and be continuing on the date such increase is requested and the date
such increase is to become effective; (ii) each of the representations and
warranties made by each of the Credit Parties in this Agreement and the other
Credit Documents shall be true and

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complete on and as of the date such increase
is requested and the date such increase is to become effective with the same
force and effect 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); (iii) the Administrative Agent shall
have received (x) such documents and certificates as the Administrative Agent
or its counsel may reasonably request relating to the authorization of such
increase and (y) a favorable written opinion (addressed to the Administrative
Agent and the Lenders) of counsel for the Borrower, after giving effect to such
increase; and (iv) the Credit Parties shall be in compliance with Article VI.

     SECTION 2.10. Repayment of Loans; Evidence of Debt; Extension of
Revolving Loan Maturity Date. The Borrower hereby unconditionally
promises to pay (i) to the Administrative Agent for the account of each Lender
the then unpaid principal amount of each Revolving Loan on the Revolving Loan
Maturity Date, (ii) to the Administrative Agent for the account of each Lender
the then unpaid principal amount of the Term Loan on the Term Loan Maturity
Date, (iii) to the Administrative Agent for the account of each Lender the then
unpaid principal amount of each Competitive Loan on the last day of the
Interest Period applicable to such Loan and (iv) to the Swingline Lender the
then unpaid principal amount of each Swingline Loan on or before the earlier of
the Revolving Loan Maturity Date and the fifth Business Day after such
Swingline Loan is made; provided that on each date that a Revolving
Borrowing or Competitive Borrowing is made, the Borrower shall repay all
Swingline Loans then outstanding.

     (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 absent manifest error 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 the form of Exhibit 2.10(e).
Thereafter, the Loans evidenced by such promissory note and interest
thereon shall at all times (including after assignment pursuant to
SECTION 9.4) 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).

     (f) So long as no Default or Event of Default has occurred and is
continuing, the Borrower may elect at least 30 days but no more than 90
days prior to the Initial Revolving Loan Maturity Date, to extend the
Revolving Loan Maturity Date for one year by providing written notice of
such election to the Administrative Agent (which shall promptly notify
each of the Lenders). If on the Initial Revolving Loan Maturity Date (i)
no Default or Event of Default exists

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and is continuing, (ii) the
Borrower pays to the Administrative Agent, for the pro rata benefit of
the Lenders based on their Applicable Percentages, an extension fee equal
to .20% of the then total Revolver Commitments, and (iii) the Borrower
has given written notice to the Administrative Agent of such election to
extend the Revolving Loan Maturity Date within the time frame set forth
in this SECTION 2.10(f), the Revolving Loan Maturity Date shall be
extended to August 20, 2008.

     SECTION 2.11. Prepayment of Loans. 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;
provided that the Borrower shall not have the right to prepay any
Competitive Loan without the prior consent of the Lender thereof.

     (b) The Borrower shall notify the Administrative Agent (and, in the
case of prepayment of a Swingline Loan, the Swingline Lender) by
telephone (confirmed 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, two Business Days before the date of prepayment, (ii)
in the case of prepayment of an ABR Borrowing (other than a Swingline
Loan), not later than 11:00 a.m., New York City time, one Business Day
before the date of prepayment or (iii) in the case of prepayment of a
Swingline Loan, not later than 12:00 noon, New York City time, on the
date of prepayment. 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 Revolver Commitments as
contemplated by SECTION 2.9, then such notice of prepayment may be
revoked if such notice of termination is revoked in accordance with
SECTION 2.9. Promptly following receipt of any such notice relating to a
Revolving Borrowing or Term Borrowing, the Administrative Agent shall
advise the Lenders of the contents thereof. Each partial prepayment of
any Revolving Borrowing or Term Borrowing shall be in an amount that
would be permitted in the case of an advance or continuation of a
Revolving Borrowing or Term Borrowing of the same Type as provided in
SECTION 2.2. Each prepayment of a Revolving Borrowing shall be applied
ratably to the Loans included in the prepaid Borrowing. Each partial
prepayment of the Term Loan shall be allocated among the Lenders pro rata
in accordance with each Lender’s share of the Term Loan, with adjustments
to the extent practicable to equalize any prior prepayments not exactly
in proportion. Prepayments shall be accompanied by accrued interest to
the extent required by SECTION 2.13. No amount repaid with respect to
the Term Loan may be reborrowed.

     (c) The Borrower shall prepay Loans to the extent required by
SECTION 5.13.

     SECTION 2.12. Fees. (i) If and for so long as the Borrower does
not have at least two Applicable Credit Ratings in effect (including at least
one from Moody’s or S&P), the Borrower agrees to pay to the Administrative
Agent for the account of each Lender a commitment fee, which shall accrue at
the Revolver Commitment Fee Rate on the daily amount of the unused Revolver
Commitment of such Lender during the period from the Effective Date until such
time as the Borrower has obtained and has in effect two Applicable Credit
Ratings, and (ii) so long as the Borrower has at least two Applicable Credit
Ratings in effect (including at least one from Moody’s or S&P), the Borrower
agrees to pay to the Administrative Agent for the account of each Lender a
facility fee, which shall accrue at the Facility Fee Rate on the Revolver
Commitment of such Lender; provided that, if such Lender continues to have any
Revolving Credit Exposure after its Revolver Commitment terminates, then the
facility fee payable pursuant to clause (ii) above shall continue to accrue on
the daily amount of such Lender’s Revolving Credit Exposure from and including
the date on which its Revolver Commitment terminates to but excluding the date
on which such Lender ceases to have any Revolving Credit Exposure. Accrued

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commitment fees and facility fees shall be payable in arrears on the last
Business Day of March, June, September and December of each year and on the
date on which the Revolver Commitments terminate, commencing on the first such
date to occur after the date hereof; provided that any commitment fees
or facility fees accruing after the date on which the Revolver Commitments
terminate shall be payable on demand. All commitment fees and facility fees
shall be computed on the basis of a year of 360 days and shall be payable for
the actual number of days elapsed (including the first day but excluding the
last day).

     (b) The Borrower agrees to pay (i) to the Administrative Agent for
the account of each Lender a participation fee with respect to its
participations in Letters of Credit, which shall accrue at the same
Applicable Rate used to determine the interest rate applicable to
Eurodollar Loans on the average daily amount of such Lender’s LC Exposure
(excluding any portion thereof attributable to unreimbursed LC
Disbursements) during the period from and including the Effective Date to
but excluding the later of the date on which such Lender’s Revolver
Commitment terminates and the date on which such Lender ceases to have
any LC Exposure, and (ii) to the Issuing Bank a fronting fee, which shall
accrue at the rate of 0.125% per annum on the average daily amount of the
LC Exposure (excluding any portion thereof attributable to unreimbursed
LC Disbursements) during the period from and including the Effective Date
to but excluding the later of the date of termination of the Revolver
Commitments and the date on which there ceases to be any LC Exposure, as
well as the Issuing Bank’s standard fees with respect to
the issuance, amendment, renewal or extension of any Letter of
Credit or processing of drawings thereunder. Participation fees and
fronting fees accrued through and including the last day of March, June,
September and December of each year shall be payable on such last day,
commencing on the first such date to occur after the Effective Date;
provided that all such fees shall be payable on the date on which
the Revolver Commitments terminate and any such fees accruing after the
date on which the Revolver Commitments terminate shall be payable on
demand. Any other fees payable to the Issuing Bank pursuant to this
paragraph shall be payable within 10 days after demand. All
participation fees and fronting fees shall be computed on the basis of a
year of 360 days and shall be payable for the actual number of days
elapsed (including the first day but excluding the last day).

     (c) The Borrower agrees to pay to the Administrative Agent, for its
own account, fees payable in the amounts and at the times separately
agreed upon between the Borrower and the Administrative Agent.

     (d) Simultaneously with the delivery of each Competitive Bid
Request, the Borrower shall pay the Administrative Agent for its own
account a fee of $2,500.

     (e) All fees payable hereunder shall be paid on the dates due, in
immediately available funds, to the Administrative Agent (or to the
Issuing Bank, in the case of fees payable to it) for distribution, in the
case of facility fees and participation fees, to the Lenders. Fees paid
shall not be refundable under any circumstances.

     SECTION 2.13. Interest. The Loans comprising each ABR Borrowing
(including each Swingline Loan) shall bear interest at the Alternate Base Rate.

     (b) The Loans comprising each Eurodollar Borrowing shall bear
interest (i) in the case of a Eurodollar Revolving Loan or a Eurodollar
Term Loan, at the Adjusted LIBO Rate for the Interest Period in effect
for such Borrowing plus the Applicable Rate, or (ii) in the case of a
Eurodollar Competitive Loan, at the Adjusted LIBO Rate for the Interest
Period in effect for such Borrowing plus (or minus, as applicable) the
Margin applicable to such Loan.

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     (c) Each Fixed Rate Loan shall bear interest at the Fixed Rate
applicable to such Loan.

     (d) Notwithstanding the foregoing, (i) 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 (A) 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
(B) in the case of any other amount, 2% plus the rate applicable to ABR
Loans as provided in paragraph (a) of this Section, and (ii) for so long
as an Event of Default has occurred and is continuing, the principal
balance of all Loans and other Obligations shall bear interest at a rate
per annum equal to 2% plus the rate otherwise applicable to such Loans
and other Obligations (which for any amounts other than principal of and
interest on Loans shall be the rate applicable to ABR Loans).

     (e) Accrued interest on each Loan shall be payable in arrears on
each Interest Payment Date for such Loan and, (i) in the case of
Revolving Loans, upon the Revolving Loan Maturity Date, and (ii) in the
case of the Term Loan, upon the Term Loan Maturity Date; 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 or Eurodollar Term 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.

     (f) 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, Adjusted LIBO Rate or LIBO Rate shall be
determined by the Administrative Agent, and such determination shall be
conclusive absent manifest error.

     SECTION 2.14. 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 Adjusted LIBO Rate for such Interest
Period; or

     (b) the Administrative Agent is advised by the Required Lenders (or,
in the case of a Eurodollar Competitive Loan, the Lender that is required
to make such Loan) that the Adjusted 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 Revolving Borrowing or
Term Borrowing to, or continuation

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of any Revolving Borrowing or Term Borrowing
as, a Eurodollar Borrowing shall be ineffective, (ii) if any Borrowing Request
requests a Eurodollar Revolving Borrowing or a Eurodollar Term Borrowing, such
Borrowing shall be made as an ABR Borrowing and (iii) any request by the
Borrower for a Eurodollar Competitive Borrowing shall be ineffective;
provided that (A) if the circumstances giving rise to such notice do not
affect all the Lenders, then requests by the Borrower for Eurodollar
Competitive Borrowings may be made to Lenders that are not affected thereby and
(B) if the circumstances giving rise to such notice affect only one Type of
Borrowings, then the other Type of Borrowings shall be permitted.

     SECTION 2.15. Increased Costs. 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 (except any
such reserve requirement reflected in the Adjusted LIBO Rate) or
the Issuing Bank; or

     (ii) impose on any Lender or the Issuing Bank or the London
interbank market any other condition affecting this Agreement or
Eurodollar Loans or Fixed Rate Loans made by such Lender or any
Letter of Credit or participation therein;

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

     (b) If any Lender or the Issuing Bank 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 or the Issuing Bank’s
capital or on the capital of such Lender’s or the Issuing Bank’s holding
company, if any, as a consequence of this Agreement or the Loans made by,
or participations in Letters of Credit held by, such Lender, or the
Letters of Credit issued by the Issuing Bank, to a level below that which
such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s
holding company could have achieved but for such Change in Law (taking
into consideration such Lender’s or the Issuing Bank’s policies and the
policies of such Lender’s or the Issuing Bank’s holding company with
respect to capital adequacy), then from time to time the Borrower will
pay to such Lender or the Issuing Bank, as the case may be, such
additional amount or amounts as will compensate such Lender or the
Issuing Bank or such Lender’s or the Issuing Bank’s holding company for
any such reduction suffered.

     (c) A certificate of a Lender or the Issuing Bank setting forth the
amount or amounts necessary to compensate such Lender or the Issuing Bank
or its holding company, as the case may be, 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 or
the Issuing Bank, as the case may be, the amount shown as due on any such
certificate within 10 days after receipt thereof.

     (d) Failure or delay on the part of any Lender or the Issuing Bank
to demand compensation pursuant to this Section shall not constitute a
waiver of such Lender’s or the Issuing Bank’s right to demand such
compensation; provided that the Borrower shall not be

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required to
compensate a Lender or the Issuing Bank pursuant to this Section for any
increased costs or reductions incurred more than 270 days prior to the
date that such Lender or the Issuing Bank, as the case may be, notifies
the Borrower of the Change in Law giving rise to such increased costs or
reductions and of such Lender’s or the Issuing Bank’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 270-day period referred to above shall be extended to include
the period of retroactive effect thereof.

     (e) Notwithstanding the foregoing provisions of this Section, a
Lender shall not be entitled to compensation pursuant to this Section in
respect of any Competitive Loan if the Change in Law that would otherwise
entitle it to such compensation shall have been publicly announced prior
to submission of the Competitive Bid pursuant to which such Loan was
made.

     SECTION 2.16. Break Funding Payments. In the event of (a) the
payment of any principal of any Eurodollar Loan or Fixed Rate 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 or Fixed Rate Loan on
the date specified in any notice delivered pursuant hereto (regardless of
whether such notice may be revoked under SECTION 2.11(b) and is
revoked in accordance therewith), (d) the failure to borrow any
Competitive Loan after accepting the Competitive Bid to make such Loan, or (e)
the assignment of any Eurodollar Loan or Fixed Rate 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 2.19, then, in any such event, the Borrower shall
compensate each Lender for any loss, cost and expense incurred and attributable
to such event. In the case of a Eurodollar Loan, such loss, cost or expense to
any Lender shall be deemed to equal 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 Adjusted
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 10 days after receipt thereof.

     SECTION 2.17. Taxes. 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 the 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, Lender or Issuing Bank (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; provided, further, that the Borrower will not be
required to increase such amounts if the additional sums payable are (A)
attributable to the Administrative Agent’s, a Lender’s or the Issuing Bank’s
failure to comply with SECTION 2.17(e) or (B) United States withholding taxes
imposed on amounts payable to the Administrative Agent, such Lender or Issuing
Bank at the time the Administrative Agent, such Lender or the Issuing Bank
becomes a party to this Agreement.

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     (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, each
Lender and the Issuing Bank, within 10 days after written demand
therefor, for the full amount of any Indemnified Taxes or Other Taxes
paid by the Administrative Agent, such Lender or the Issuing Bank, 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 the Issuing Bank, or by the Administrative Agent on its own behalf or
on behalf of a Lender or the Issuing Bank, 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) Each Foreign Lender shall deliver to the Borrower and the
Administrative Agent two copies of either U.S. Internal Revenue Service
Form W-8BEN or Form W-8ECI, or any subsequent versions thereof or
successors thereto, properly completed and duly executed by such Foreign
Lender claiming complete exemption from, or a reduced rate of, U.S.
federal withholding tax on all payments by the Borrower under this
Agreement. Additionally, any Foreign Lender that is entitled to any
other 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 other 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. Such
forms shall be delivered by each Foreign Lender on or before the date it
becomes a party to this Agreement. In addition, each Foreign Lender
shall promptly notify the Borrower at any time it determines that it is
no longer in a position to provide any previously delivered certificate
to the Borrower.

     (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 2.17,
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 2.17 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

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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.

     SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of
Set-offs. The Borrower shall make each payment required to be made by it
hereunder (whether of principal, interest, fees or reimbursement of LC
Disbursements, or of amounts payable under SECTION 2.15, SECTION 2.16, SECTION
2.17, or otherwise) prior to 12:00 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 270 Park Avenue,
New York, New York, except payments to be made directly to the Issuing Bank or
Swingline Lender as expressly provided herein and except that payments pursuant
to SECTION 2.15, SECTION 2.16, SECTION 2.17 and SECTION 9.3 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,
unreimbursed LC Disbursements, 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 and unreimbursed
LC Disbursements then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of principal and unreimbursed LC
Disbursements 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, its pro rata share of the Term
Loan or participations in LC Disbursements or Swingline Loans resulting
in such Lender receiving payment of a greater proportion of the aggregate
amount of its Revolving Loans, its pro rata share of the Term Loan or
participations in LC Disbursements and Swingline 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, the Term Loan and
participations in LC Disbursements and Swingline 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,
Term Loan and participations in LC Disbursements and Swingline 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 or
participations in LC Disbursements 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

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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 or the Issuing Bank
hereunder that the Borrower will not make such payment, the
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 or the Issuing Bank, as the case
may be, the amount due. In such event, if the Borrower has not in fact
made such payment, then each of the Lenders or the Issuing Bank, as the
case may be, severally agrees to repay to the Administrative Agent
forthwith on demand the amount so distributed to such Lender or Issuing
Bank 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 2.5(c), SECTION 2.6(d), SECTION 2.6(e), SECTION
2.7(b) or SECTION 2.18(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 2.19. Mitigation Obligations; Replacement of Lenders. If
any Lender requests compensation under SECTION 2.15, 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 2.17, 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 2.15 or SECTION 2.17, 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 any Lender requests compensation under SECTION 2.15, 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 2.17, or if any Lender defaults in its obligation to fund Loans
hereunder, 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 9.4), all its interests, rights
and obligations under this Agreement (other than any outstanding
Competitive Loans held by it) to an Eligible Assignee that shall assume
such obligations; 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 (other than Competitive Loans) and participations in LC
Disbursements and Swingline 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
2.15 or payments required to be made pursuant to SECTION 2.17, such
assignment will result in a reduction in such compensation or payments.
A Lender shall not be required to make any such

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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.

ARTICLE III

 REPRESENTATIONS AND WARRANTIES

The Credit Parties hereby represent to the Administrative Agent and each Lender
that:

     SECTION 3.1. Organization; Powers. Each of the Guarantor, the
Borrower and their Subsidiaries (a) is either a partnership, a corporation, a
limited liability company or a REIT duly organized or formed, validly existing
and in good standing under the laws of the state (or other jurisdiction) of its
organization or formation, (b) is duly qualified and in good standing as a
foreign partnership, a foreign corporation, a foreign limited liability company
or a foreign REIT and authorized to do business in every other jurisdiction
where the failure to be so qualified, in good standing or authorized would have
or would reasonably be expected to have a Material Adverse Effect and (c) has
the power and authority to own its properties and to carry on its business as
now conducted and as proposed to be conducted.

     SECTION 3.2. Authorization; Enforceability. Each Credit Party (a)
has the power and authority to execute, deliver and perform this Agreement and
the other Credit Documents to which it is a party and to incur the obligations
herein and therein provided for and to consummate the transactions contemplated
herein and therein and (b) is duly authorized, and has been authorized by all
necessary action, to execute, deliver and perform this Agreement and the other
Credit Documents to which it is a party and to consummate the Transactions.
This Agreement and each of the other Credit Documents has been duly executed
and delivered by each of the Credit Parties and constitutes a legal, valid and
binding obligation of such Credit Parties, 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.

     SECTION 3.3. 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 (including, without limitation,
Regulation T, U or Regulation X), order, writ, judgment, injunction, decree or
permit applicable to the Guarantor, the Borrower or their Subsidiaries, or the
charter, by-laws or other organizational documents of the Guarantor, the
Borrower or any of their 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 Guarantor, the Borrower or their
Subsidiaries or their assets, or give rise to a right thereunder to require any
payment to be made by the Guarantor, the Borrower or their Subsidiaries, and
(d) will not result in the creation or imposition of any Lien on any asset of
the Guarantor, the Borrower or their Subsidiaries.

     SECTION 3.4. Financial Condition; No Material Adverse Change. The
Guarantor has heretofore furnished to the Lenders its consolidated balance
sheet and statements of income, stockholders equity and cash flows (i) as of
and for the fiscal year ended December 31, 2003, reported on by Ernst & Young
LLP, independent public accountants, and (ii) as of and for the fiscal quarter
and the portion of the fiscal year ended June 30, 2004, certified by the chief
financial officer of the Guarantor. Such financial statements present fairly,
in all material respects, the financial position and results of operations and
cash flows of the Consolidated Businesses as of such dates and for such periods
in accordance with GAAP,

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subject to year-end audit adjustments and the absence
of footnotes in the case of the statements referred to in clause (ii) above.

     (b) Since December 31, 2003, there has been no material adverse
change in the business, assets, property operations, prospects or
condition, financial or otherwise, of the Guarantor, the Borrower and the
Subsidiaries, taken as a whole.

     SECTION 3.5. Properties. Each of the Guarantor, the Borrower and
the Subsidiaries has good and marketable 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 and none of such assets is subject to any Lien other than
Permitted Encumbrances and Liens securing Secured Indebtedness permitted by
this Agreement.

     (b) Each of the Guarantor, the Borrower and the Subsidiaries owns,
or is licensed to use, all trademarks, tradenames, copyrights, patents
and other intellectual property material to its business, and the use
thereof by the Guarantor, the Borrower and the 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.

     (c) The Guarantor, the Borrower and the Subsidiaries have obtained,
and hold in full force and effect, all franchises, licenses, permits,
certificates, authorizations, qualifications, accreditations, easements,
rights of way and other rights, consents and approvals which are
necessary for the operation of their respective businesses as presently
conducted, except where the failure to obtain the same would not have or
would not reasonably be expected to have a Material Adverse Effect.

     SECTION 3.6. Litigation and Environmental Matters. Except as set
forth on Schedule 3.6(a) or in the Disclosed Matters, there are no
actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of the Credit Parties,
threatened against or affecting the Guarantor, the Borrower or any of the
Subsidiaries (i) as to which there is a reasonable 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 or
(ii) that involve this Agreement or the Transactions.

     (b) Except as set forth on Schedule 3.6(b) or in the
Disclosed Matters, none of the Guarantor, the Borrower nor any of the
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, which, in each of (i)-(iv) above, could,
individually or in the aggregate, reasonably be expected to result in a
Material Adverse Effect (after taking into account any indemnities,
escrows or other similar protections provided by a third party for such
matters).

     (c) Since the date of this Agreement, there has been no change in
the status of the Disclosed Matters, Schedule 3.6(a) or
Schedule 3.6(b), that, individually or in the aggregate, has
resulted in, or materially increased the likelihood of, a Material
Adverse Effect (after taking into account any indemnities, escrows or
other similar protections provided by a third party for the matters set
forth in Schedule 3.6(b)).

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     SECTION 3.7. Compliance with Laws and Agreements. Each of the
Guarantor, the Borrower and the 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. Neither the Guarantor, the Borrower nor any of the Subsidiaries is in
default in any respect under any contract, lease, loan agreement, indenture,
mortgage, security agreement or other agreement or obligation to which it is a
party or by which any of its properties is bound which default would have or
would be reasonably expected to have a Material Adverse Effect. No Default or
Event of Default has occurred and is continuing.

     SECTION 3.8. Investment and Holding Company Status. Neither the
Guarantor, the Borrower nor any of the Subsidiaries is (a) an “investment
company” as defined in, or subject to regulation under, the Investment Company
Act of 1940 or (b) a “holding company” as defined in, or subject to regulation
under, the Public Utility Holding Company Act of 1935.

     SECTION 3.9. Taxes. Each of the Guarantor, the Borrower and the
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 Guarantor, the Borrower
or the Subsidiaries, as
applicable, have 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 $250,000 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 $250,000 the
fair market value of the assets of all such underfunded Plans.

     SECTION 3.11. Indebtedness. As of the date the date hereof and
except as set forth on Schedule 3.11, the Guarantor, the Borrower and
the Subsidiaries have no outstanding Indebtedness (other than inter-company
indebtedness). As of the date hereof, all Indebtedness on Schedule 3.11
is permitted by this Agreement.

     SECTION 3.12. Organization Structure/Subsidiaries. As of August
13, 2004, (a) Schedule 3.12 is a complete and accurate organization
chart of the Consolidated Businesses, and (b) except as set forth on
Schedule 3.12, neither the Guarantor nor the Borrower have any
Subsidiaries or own any interest, directly or indirectly, in any Joint Venture.
The outstanding equity interests of all the Consolidated Businesses are
validly issued, fully paid and non-assessable and are owned by such
Consolidated Business free and clear of all Liens. As of the Closing Date, any
changes to Schedule 3.12 since August 13, 2004 can not reasonably be expected
to result in a Material Adverse Effect. Schedule 3.12 shall be updated
as of the end of each fiscal quarter as set forth in SECTION 5.1(f).

     SECTION 3.13. Solvency. Each Credit Party, is and, after
consummation of the transactions contemplated by this Agreement, will be
Solvent.

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     SECTION 3.14. Location of Properties; Unencumbered Properties. As
of August 13, 2004, set forth on Schedule 3.14 is (a) a list of all
Properties (with street address, county and state where located) and the owner
of such Property and (b) a list of all Unencumbered Properties and all
Unencumbered Construction Properties. All such Unencumbered Properties and
Unencumbered Construction Properties satisfy the requirements for an
Unencumbered Property or Unencumbered Construction Property, as applicable, set
forth in the definition thereof. As of the Closing Date, any changes to
Schedule 3.14 since August 13, 2004 can not reasonably be expected to result in
a Material Adverse Effect. Schedule 3.14 shall be updated as of the end
of each fiscal quarter as set forth in SECTION 5.1(f).

     SECTION 3.15. No Burdensome Restrictions. Neither the Guarantor,
the Borrower nor Subsidiary is a party to any agreement or instrument or
subject to any other obligation or any charter or corporate restriction or any
provision of any applicable law, rule or regulation which, individually or in
the aggregate, would have or would be reasonably expected to have a Material
Adverse Effect.

     SECTION 3.16. Disclosure. The Borrower and Guarantor have
disclosed to the Lenders all agreements, instruments and corporate or other
restrictions to which they or any of the other Subsidiaries are 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. Neither the
Information Memorandum nor
any of the other reports, financial statements, certificates or other
information furnished by or on behalf of the Credit Parties 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
Credit Parties represent only that such information was prepared in good faith
based upon assumptions believed to be reasonable at the time; provided,
further, that, with respect to any financial information provided by any
Lease Credit Party, the Credit Parties represent only that the information
furnished to the Administrative Agent or any Lender was prepared based upon the
actual financial information received from such Lease Credit Parties and the
Credit Parties make no representations or warranties as to the accuracy of the
financial information received from such Lease Credit Parties.

     SECTION 3.17. Insurance. The insurance policies and programs in
effect as of the Effective Date and thereafter with respect to the Properties,
assets and business of the Guarantor, the Borrower and the Subsidiaries are in
compliance with SECTION 5.5. Schedule 3.17 accurately sets forth as of
the date hereof all insurance policies currently maintained by the Guarantor,
the Borrower and the Subsidiaries.

     SECTION 3.18. SEC Reports. As of the Effective Date, the Credit
Parties have filed all forms, reports, statements (including proxy statements)
and other documents (such filings by the Credit Parties are collectively
referred to as the “SEC Reports”), required to be filed by it with the
Securities and Exchange Commission. The SEC Reports, including all SEC Reports
filed after the Effective Date and on or prior to the date of this Agreement,
(i) were or will be prepared in all material respects in accordance with the
requirements of the Securities Act of 1933, as amended, and the Securities
Exchange Act of 1934, as amended, as the case may be, and the rules and
regulations of the Securities Exchange Commission thereunder applicable to such
SEC Reports at the time of filing thereof and (ii) did not at the time they
were filed, or will not at the time they are filed, contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading.

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ARTICLE IV 

CONDITIONS

     SECTION 4.1. Effective Date. The obligations of the Lenders to
make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall
not become effective until the date on which each of the following conditions
is satisfied (or waived in accordance with SECTION 9.2):

     (a) The Administrative Agent (or its counsel) shall have received
from each party hereto either (i) a counterpart of this Agreement and all
other Credit Documents to which it is a party 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) that
such party has signed a counterpart of this Agreement and all other
Credit Documents to which it is a party.

     (b) The Administrative Agent shall have received a favorable written
opinion (addressed to the Administrative Agent and the Lenders and dated
the Effective Date) of Winston & Strawn LLP, Delaware, New York and
Maryland counsel for the Credit Parties, covering such matters relating
to the Credit Parties, this Agreement or the Transactions as the
Administrative Agent shall reasonably request. The Credit Parties hereby
request such counsel to deliver such opinion.

     (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
Credit Parties, the authorization of the Transactions and any other legal
matters relating to the Credit Parties, 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 4.2.

     (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.

     (f) No change in the business, assets, management, operations,
financial condition or prospects of the Guarantor, the Borrower and the
Subsidiaries or any of their respective Properties shall have occurred
since December 31, 2003 which change, in the judgment of the
Administrative Agent, will have or is reasonably likely to have a
Material Adverse Effect.

     (g) The Administrative Agent shall have received an officer’s
certificate duly executed by the President, a Vice President or a
Financial Officer of the Borrower certifying as to pro forma compliance
with the financial covenants in SECTION 5.9, SECTION 6.1 and SECTION 6.4
as of the Closing Date (taking into account any Borrowings to occur on
such date).

     (h) The Administrative Agent shall have received (i) all
certificates and other information it shall reasonably request to verify
that all Eligible Properties, Unencumbered Properties and Unencumbered
Construction Properties satisfy the requirements set forth in the
definitions thereof and any other provisions of this Agreement and (ii)
current certificates of insurance as to all of the insurance maintained
by the Guarantor, the Borrower and the

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Subsidiaries on the Properties from the insurer or an independent
insurance broker or a schedule of insurance from the Borrower,
identifying insurers, types of insurance, insurance limits, and policy
terms, and such further information and certificates from the Borrower,
its insurers and insurance brokers as the Administrative Agent may
reasonably request.

     (i) The Administrative Agent shall have received financial
statements of the type described in SECTION 5.1(a) for the 2002 and 2003
fiscal years of the Guarantor and financial statements of the type
described in SECTION 5.1(b) for the quarters ended subsequent to December
31, 2003.

The Administrative Agent shall notify the Borrower and the Lenders of the
Effective Date, and such notice shall be conclusive and binding.

     SECTION 4.2. Each Credit Event. The obligation of each Lender to
make a Loan on the occasion of any Borrowing, and of the Issuing Bank to issue,
amend, renew or extend any Letter of Credit, in each case including on the
Effective Date, is subject to the satisfaction of the following conditions:

     (a) The representations and warranties of the Credit Parties set
forth in this Agreement shall be true and correct on and as of the date
of such Borrowing or the date of issuance, amendment, renewal or
extension of such Letter of Credit, as applicable.

     (b) At the time of and immediately after giving effect to such
Borrowing or the issuance, amendment, renewal or extension of such Letter
of Credit, as applicable, no Default shall have occurred and be
continuing.

     (c) The Borrower shall not have received written notice from the
Required Lenders that an event has occurred since the date of this
Agreement which has had, and continues to have, or is reasonable likely
to have, a Material Adverse Effect.

     (d) The Administrative Agent shall have received an officer’s
certificate duly executed by the President, a Vice President or a
Financial Officer of the Borrower as to the pro forma financial covenant
compliance required by SECTION 6.1(j).

     (e) No law, regulation or order of any Governmental Authority shall
prohibit, enjoin or restrain any Lender from making such Borrowing or
participating in the issuance, amendment, renewal or extension of such
Letter of Credit, as reasonably determined by such Lender .

Each Borrowing and each issuance, amendment, renewal or extension of a Letter
of Credit shall be deemed to constitute a representation and warranty by the
Credit Parties on the date thereof as to the matters specified in paragraphs
(a) and (b) of this Section.

ARTICLE IVA

GUARANTY

     SECTION 4A.1 Guaranty of Payment and Performance. Subject to
SECTION 4A.7, the Guarantor hereby absolutely, irrevocably and unconditionally
guarantees to each Lender the prompt payment and performance of the Obligations
in full when due (whether at stated maturity, as a mandatory prepayment, by
acceleration or otherwise). This Guaranty is a guaranty of payment and not of
collection and is a continuing guaranty and shall apply to all Obligations
whenever arising.

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     SECTION 4A.2 Obligations Unconditional. The obligations of the
Guarantor hereunder are absolute, irrevocable and unconditional, irrespective
of the value, genuineness, validity, regularity or enforceability of any of the
Credit Documents or any other agreement or instrument referred to therein, to
the fullest extent permitted by applicable law, irrespective of any other
circumstance whatsoever which might otherwise constitute a legal or equitable
discharge or defense of a surety or guarantor. The Guarantor agrees that this
Guaranty may be enforced by the Lenders without the necessity at any time of
resorting to or exhausting any other security or collateral and without the
necessity at any time of having recourse to any notes issued hereunder or any
other of the Credit Documents or any collateral, if any, hereafter securing the
Obligations or otherwise and the Guarantor hereby waives the right to require
the Lenders to proceed against the Borrower or any other Person (including a
co-guarantor) or to require the Lenders to pursue any other remedy or enforce
any other right. The Guarantor further agrees that it shall have no right of
subrogation, indemnity, reimbursement or contribution against the Borrower for
amounts paid under this Guaranty until such time as the Lenders have been paid
in full, all Revolver Commitments under this Agreement have been terminated and
no Person or Governmental Authority shall have any right to request any return
or reimbursement of funds from the Lenders in connection with monies received
under the Credit Documents. The Guarantor further agrees that nothing contained
herein shall prevent the Lenders from suing on the Notes issued hereunder or
any of the other Credit Documents or foreclosing any security interest in or
Lien on any collateral, if any, securing the Obligations or from exercising any
other rights available to any of them under this Agreement, the Notes, any of
the other Credit Documents, or any other instrument of security, if any, and
the exercise of any of the aforesaid rights and the completion of any
foreclosure proceedings shall not constitute a discharge of any of the
Guarantor’s obligations hereunder; it being the purpose and intent of the
Guarantor that its obligations hereunder shall be absolute, independent,
irrevocable and unconditional under any and all circumstances. Neither the
Guarantor’s obligations under this Guaranty nor any remedy for the enforcement
thereof shall be impaired, modified, changed or released in any manner
whatsoever by an impairment, modification, change, release or limitation of the
liability of the Borrower or by reason of the bankruptcy or insolvency of the
Borrower. The Guarantor waives any and all notice of the creation, renewal,
extension or accrual of any of the Obligations and notice of or proof of
reliance of by the Administrative Agent or any Lender upon this Guaranty or
acceptance of this Guaranty. The Obligations, and any of them, shall
conclusively be deemed to have been created, contracted or incurred, or
renewed, extended, amended or waived, in reliance upon this Guaranty. All
dealings between the Borrower and the Guarantor, on the one hand, and the
Administrative Agent and the Lenders, on the other hand, likewise shall be
conclusively presumed to have been had or consummated in reliance upon this
Guaranty. The Guarantor further agrees to all rights of set-off as set forth in
SECTION 9.8.

     SECTION 4A.3 Modifications. The Guarantor agrees that (a) all or
any part of the security now or hereafter held for the Obligations, if any, may
be exchanged, compromised or surrendered from time to time; (b) the Lenders
shall not have any obligation to protect, perfect, secure or insure any such
security interests, liens or encumbrances now or hereafter held, if any, for
the Obligations or the properties subject thereto; (c) the time or place of
payment of the Obligations may be changed or extended, in whole or in part, to
a time certain or otherwise, and may be renewed or accelerated, in whole or in
part; (d) the Borrower and any other party liable for payment under the Credit
Documents may be granted indulgences generally; (e) any of the provisions of
the Notes issued hereunder or any of the other Credit Documents may be
modified, amended or waived; (f) any party (including any co-guarantor) liable
for the payment thereof may be granted indulgences or be released; and (g) any
deposit balance for the credit of the Borrower or any other party liable for
the payment of the Obligations or liable upon any security therefor may be
released, in whole or in part, at, before or after the stated, extended or
accelerated maturity of the Obligations, all without notice to or further
assent by the Guarantor, which shall remain bound thereon, notwithstanding any
such exchange, compromise, surrender, extension, renewal, acceleration,
modification, indulgence or release.

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     SECTION 4A.4 Waiver of Rights. The Guarantor expressly waives to
the fullest extent permitted by applicable law: (a) notice of acceptance of
this Guaranty by the Lenders and of all extensions of credit to the Borrower by
the Lenders; (b) presentment and demand for payment or performance of any of
the Obligations; (c) protest and notice of dishonor or of default (except as
specifically required in this Agreement) with respect to the Obligations or
with respect to any security therefor; (d) notice of the Lenders obtaining,
amending, substituting for, releasing, waiving or modifying any security
interest, lien or encumbrance, if any, hereafter securing the Obligations, or
the Lenders’ subordinating, compromising, discharging or releasing such
security interests, liens or encumbrances, if any; (e) all other notices to
which the Guarantor might otherwise be entitled; and (f) the benefit of any
laws that exonerate or limit the liability of guarantors or sureties, and any
defenses provided by these laws.

     SECTION 4A.5 Reinstatement. The obligations of the Guarantor
under this Guaranty shall be automatically reinstated if and to the extent that
for any reason any payment by or on behalf of any Person in respect of the
Obligations is rescinded or must be otherwise restored by any holder of any of
the Obligations, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise, and the Guarantor agrees that it will indemnify
the Administrative Agent and each Lender on demand for all reasonable costs and
expenses (including, without limitation, reasonable fees of counsel) incurred
by the Administrative Agent or such Lender in connection with such rescission
or restoration, including any such costs and expenses incurred in defending
against any claim alleging that such payment constituted a preference,
fraudulent transfer or similar payment under any bankruptcy, insolvency or
similar law.

     SECTION 4A.6 Remedies. The Guarantor agrees that, as amongst the
Guarantor, the Administrative Agent and the Lenders, the Obligations may be
declared to be forthwith due and payable as provided in ARTICLE VII (and shall
be deemed to have become automatically due and payable in the circumstances
provided in ARTICLE VII) notwithstanding any stay, injunction or other
prohibition preventing such declaration (or preventing such Obligations from
becoming automatically due and payable) as against any other Person and that,
in the event of such declaration (or such Obligations being deemed to have
become automatically due and payable), such Obligations (whether or not due and
payable by any other Person) shall forthwith become due and payable by the
Guarantor.

     SECTION 4A.7 Limitation of Guaranty. It is the intention and
agreement of the Guarantor, the Administrative Agent and the Lenders that the
obligations of the Guarantor hereunder shall be valid and enforceable against
the Guarantor to the maximum extent permitted by applicable law.
Notwithstanding any provision to the contrary contained herein or in any of the
other Credit Documents, to the extent the obligations of the Guarantor shall be
adjudicated or declared to be invalid or unenforceable for any reason
(including, without limitation, because of any applicable state or federal law
relating to fraudulent conveyances or transfers) then the obligations of the
Guarantor hereunder shall be limited to the maximum amount that is permissible
under applicable law (whether federal or state and including, without
limitation, the Bankruptcy Code).

ARTICLE V 

AFFIRMATIVE COVENANTS

     Until the Revolver 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 and all Letters of Credit shall have expired or
terminated and all LC Disbursements shall have been reimbursed, the Credit
Parties covenant and agree with the Lenders that:

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     SECTION 5.1. Financial Statements; Ratings Change and Other
Information. The Credit Parties will furnish to the Administrative Agent
(with copies for each Lender):

     (a) as soon as practicable, and in any event within 90 days after
the end of each fiscal year of the Guarantor (and the Borrower, if
prepared), its audited consolidated balance sheet and related statements
of operations, retained earnings and cash flows as of the end of and for
such year, 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 Guarantor (and the Borrower, if prepared) and its consolidated
Subsidiaries on a consolidated basis in accordance with GAAP consistently
applied;

     (b) as soon as practicable, and in any event within 45 days after
the end of each of the first three fiscal quarters of each fiscal year of
the Guarantor (and the Borrower, if prepared), its consolidated balance
sheet and related statements of operations, retained earnings and cash
flows as of the end of and for such fiscal quarter and the then elapsed
portion of the 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 one of its Financial Officers as presenting fairly in
all material respects the financial condition and results of operations
of the Guarantor (and the Borrower, if prepared) and the 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 that such Financial Officer has reviewed the
terms of the Credit Documents, and has made, or caused to be made, under
his/her supervision, a review in reasonable detail of the Transactions
and consolidated financial condition of the Guarantor and the
Subsidiaries during the period covered by such reports, (ii) 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, (iii) setting forth reasonably detailed
calculations demonstrating compliance with SECTIONS 5.9, 6.1 and 6.4,
(iv) a schedule of the outstanding Indebtedness of the Guarantor and the
Subsidiaries, including the amount, maturity, interest rate and
amortization requirements, as well as such other information regarding
such Indebtedness as may be reasonably requested by the Administrative
Agent, (v) a schedule of EBITDA, (vi) a schedule of Total Value, and
(vii) a schedule of Total Unencumbered Value (including the Lease
Coverage Ratio for each Lease Credit Party included therein);

     (d) promptly after Moody’s, S&P or any other Rating Agency shall
have announced a change in the rating established or deemed to have been
established for the Index Debt, written notice of such rating change;

     (e) all such financial information regarding the Guarantor, the
Borrower and the Subsidiaries and specifically regarding the Properties,
as the Administrative Agent shall reasonably request, including, but not
limited to, partnership, limited liability company and joint venture
agreements, property cash flow projections, property budgets, actual and
budgeted capital expenditures, operating statements (current year and
immediately preceding year, if the Property existed as a Property in the
immediately preceding year), mortgage information, rent rolls, lease
expiration reports, tenant bankruptcy reports, leasing status reports,
notes payable summary,

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bullet notes summary, equity funding requirements, contingent
liability summary, lines of credit summary, lines of credit collateral
summary, wrap notes and notes receivable summary, schedule of outstanding
letters of credit, summary of cash and Cash Equivalents, projection of
management and leasing fees and overhead budgets;

     (f) as soon as practicable, and in any event within forty-five days
after the end of each fiscal quarter, an update of Schedules 3.12
and 3.14, as applicable.

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

The Administrative Agent shall promptly furnish a copy of all reports and other
information delivered to it pursuant to this SECTION 5.1 to each of the
Lenders.

     SECTION 5.2. Notices of Material Events. The Credit Parties will
furnish to the Administrative Agent prompt written notice of the following
(with copies for each Lender):

     (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 Credit Parties or any Affiliate thereof that, if adversely
determined, could reasonably be expected to result in a Material Adverse
Effect;

     (c) 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 Guarantor and the Subsidiaries in an
aggregate amount exceeding $250,000;

     (d) the receipt of any notice or the occurrence of any event that
could reasonably be expected to result in an Environmental Liability of
the Guarantor, the Borrower and the Subsidiaries in an aggregate amount
exceeding $1,000,000;

     (e) the receipt of any notice of the bankruptcy or cessation of
operations of any tenant to which greater than two percent (2%) of the
Borrower’s share of annual base rent is attributable; and

     (f) 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. The Administrative Agent
shall promptly furnish a copy of all reports and other information delivered to
it pursuant to this SECTION 5.2 to each of the Lenders.

     SECTION 5.3. Existence; Conduct of Business. Each of the Credit
Parties will, and will cause each Subsidiary to, do or cause to be done all
things necessary to preserve, renew and keep in full force and effect their
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,

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liquidation or dissolution permitted under SECTION 6.3.
Without limiting the generality of the foregoing, the Guarantor will do all
things necessary to maintain its status as a REIT. No Credit Party will at any
time cause or permit its or its Subsidiaries’ certificate of formation, limited
liability company agreement, certificate of limited partnership, partnership
agreement, articles of incorporation, by-laws, or other charter documents, as
the case may be, to be modified, amended or supplemented in any respect
whatsoever, without, in each case, the express prior written consent or
approval of the Administrative Agent, if such changes would materially
adversely affect the rights of the Administrative Agent or the Lenders
hereunder or under any of the other Credit Documents.

     SECTION 5.4. Payment of Obligations. Each of the Credit Parties
will, and will cause each Subsidiary 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 Credit Parties or such Subsidiaries have set aside on
their books adequate reserves with respect thereto 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 5.5. Maintenance of Properties; Insurance. Each of the
Credit Parties will, and will cause each Subsidiary or tenant of any Real
Property 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, including without limitation, insurance policies and
programs sufficient to cover (i) the replacement value of the improvements at
Properties owned by the Credit Parties and the Subsidiaries (less commercially
reasonable deductible amounts) and (ii) liability risks associated with such
ownership (less commercially reasonable deductible amounts).

     SECTION 5.6. Books and Records; Inspection Rights. Each of the
Credit Parties will, and will cause each Subsidiary 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
Credit Parties will, and will cause each of the 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 their officers and independent accountants, all at such
reasonable times and as often as reasonably requested, subject to prohibitions
on disclosure of such information under Regulation D of the Securities Act of
1933 or other applicable laws or regulations.

     SECTION 5.7. Compliance with Laws and Material Contractual
Obligations. Each of the Credit Parties will, and will cause each
Subsidiary to, comply with (i) all laws, rules, regulations and orders of any
Governmental Authority applicable to it or its property, including all
Environmental Laws, and (ii) all material contractual obligations, except in
each case, where the failure to do so, individually or in the aggregate, could
not reasonably be expected to result in a Material Adverse Effect.

     SECTION 5.8. Use of Proceeds and Letters of Credit. The proceeds
of the Loans (including any Letters of Credit) will be used only for general
working capital purposes and other general corporate purposes of the Borrower.
No part of the proceeds of any Loan and none of the Letters of Credit will be
used, whether directly or indirectly, for any purpose that entails a violation
of any of the regulations of the Board of Governors of the Federal Reserve
System (or any successor body), including Regulations T, U and X.

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     SECTION 5.9. Interest Rate Protection Arrangements. The Credit
Parties shall maintain Interest Rate Hedges on a notional amount of Total
Outstanding Indebtedness so that the amount of Total Outstanding Indebtedness
that bears interest at a rate that is not fixed and is not subject to Interest
Rate Hedges shall not exceed the sum of the Adjusted Book Value of Properties
subject to Variable Rate Leases plus 20% of Total Value. “Interest Rate
Hedges” shall mean interest rate exchange, collar, cap, swap, adjustable strike
cap, adjustable strike corridor or similar agreements having terms, conditions
and tenors reasonably acceptable to the Administrative Agent entered into by
the Credit Parties in order to provide protection to, or minimize the impact
upon, the Credit Parties of increasing floating rates of interest applicable to
the Total Outstanding Indebtedness.

     SECTION 5.10. Further Assurances. The Credit Parties will
cooperate with, and will cause each Subsidiary to cooperate with, the
Administrative Agent and the Lenders and execute such further instruments and
documents as the Lenders or the Administrative Agent shall reasonably request
to carry out to their reasonable satisfaction the transactions contemplated by
this Agreement and the other Credit Documents.

     SECTION 5.11. Distributions in the Ordinary Course. In the
ordinary course of business the Borrower causes all of the Subsidiaries to make
transfers of net cash and cash equivalents upstream to the Borrower, and the
Borrower shall continue to follow such ordinary course of business. The
Borrower shall not make net transfers of cash and cash equivalents downstream
to the Subsidiaries except in the ordinary course of business consistent with
past practice.

     SECTION 5.12. ERISA Compliance. Each of the Credit Parties shall,
and shall cause each of the Subsidiaries and ERISA Affiliates to, establish,
maintain and operate all Plans to comply in all material respects with the
provisions of ERISA, the Code, all other applicable laws, and the regulations
and interpretations thereunder and the respective requirements of the governing
documents for such Plans.

     SECTION 5.13. Notices of Asset Sales or Dispositions. The Credit
Parties shall deliver to the Administrative Agent and the Lenders written
notice not less than five (5) Business Days prior to a sale, transfer or other
disposition of (i) an Unencumbered Property for consideration in excess of
$25,000,000 or (ii) other assets of the Credit Parties or their Subsidiaries,
in a single transaction or series of related transactions, for consideration in
excess of $35,000,000. In addition, simultaneously with delivery of any such
notice, the Credit Parties shall deliver to the Administrative Agent a
certificate of a Financial Officer certifying that Credit Parties are in
compliance with this Agreement and the other Credit Documents both on a
historical basis and on a pro forma basis, exclusive of the property sold or
transferred.

To the extent such proposed transaction would result in a failure to comply
with the covenants set forth herein, the Borrower shall apply the proceeds of
such transaction (together with such additional amounts as may be required), to
prepay the Obligations in an amount, as determined by the Administrative Agent,
equal to that which would be required to reduce the Obligations so that
Borrower will be in compliance with the covenants set forth herein upon the
consummation of the contemplated transaction.

ARTICLE VI 

NEGATIVE COVENANTS

Until the Revolver Commitments have expired or terminated and the principal of
and interest on each Loan and all fees payable hereunder have been paid in
full and all Letters of Credit have expired or terminated and all LC
Disbursements shall have been reimbursed, the Credit Parties covenant and agree
with the Lenders that:

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     SECTION 6.1. Indebtedness and certain other Financial Covenants.

     (a) Total Indebtedness. The Borrower will not permit the
ratio of Total Outstanding Indebtedness to Total Value to exceed 0.60 to
1 as of the last day of any fiscal quarter of the Borrower; provided that
such ratio may exceed 0.60 to 1 as of the last day of up to (but not more
than) two consecutive fiscal quarters of the Borrower so long as such
ratio does not exceed 0.65 to 1 in such fiscal quarter(s).

     (b) Total Secured Indebtedness. The Borrower will not permit
the ratio of Total Secured Outstanding Indebtedness to Total Value to
exceed 0.50 to 1 as of the last day of any fiscal quarter of the
Borrower; provided that such ratio may exceed 0.50 to 1 as of the last
day of up to (but not more than) two consecutive fiscal quarters of the
Borrower so long as such ratio does not exceed 0.55 to 1 in such fiscal
quarter(s).

     (c) Minimum Combined Equity Value. The Borrower will not
permit Combined Equity Value as of the last day of any fiscal quarter of
the Borrower to be less than $650,000,000 plus an amount equal to 80% of
all Net Offering Proceeds received by the Guarantor or the Borrower after
the Effective Date.

     (d) Minimum Fixed Charge Coverage Ratio. The Borrower will
not permit the ratio of (x) EBITDA for any period of four consecutive
fiscal quarters of the Borrower to (y) Fixed Charges for such period to
be less than 1.50 to 1.

     (e) Total Unsecured Indebtedness. The Borrower will not
permit the ratio of Total Unsecured Outstanding Indebtedness to Total
Unencumbered Value to exceed 0.60 to 1 as of the last day of any fiscal
quarter of the Borrower.

     (f) Minimum Unsecured Interest Coverage Ratio. The Borrower
will not permit the ratio of (x) Unencumbered NOI for any period of four
consecutive fiscal quarters of the Borrower to (y) Unsecured Interest
Expense for such period to be less than 1.80 to 1.

     (g) Recourse Indebtedness. (i) The Borrower will not permit
Total Recourse Secured Outstanding Indebtedness to exceed the lesser of
(x) $150,000,000 or (y) 5% of Total Value at any time.

     (ii) The Borrower shall not permit any Subsidiary that owns
any Property that is treated as an Unencumbered Property under this
Agreement to, and no such Subsidiary shall, create, incur, assume
or permit to exist any Indebtedness that is recourse to such
Subsidiary.

     (h) Maximum Dividend Payout Ratio. The Borrower shall not
make any Restricted Payment during any fiscal quarter, which, when added
to all Restricted Payments made during such fiscal quarter and the three
immediately preceding fiscal quarters, exceeds the greater of (x) ninety
percent (90%) of Funds from Operations for the period of four (4)
consecutive fiscal quarters of the Borrower and (y) the amounts required
for the Guarantor to maintain its status as a REIT; provided that if an
Event of Default has occurred and is continuing, the Borrower shall only
make Restricted Payments in the minimum amount necessary for the
Guarantor to maintain such status as a REIT.

     (i) Negative Pledge. From and after the date hereof, no
Credit Party shall enter into or permit to exist, and no Credit Party
will permit any Subsidiary to enter into or permit to exist,

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any agreement or arrangement (i) containing any provision
prohibiting or restricting the creation or assumption of any Lien upon
its properties (other than mechanics liens or judgment liens more than 30
days past due and other than with respect to prohibitions on liens set
forth in a mortgage on a particular property), revenues or assets,
whether now owned or hereafter acquired, or (ii) prohibiting or
restricting the ability of a Credit Party to amend or modify this
Agreement or any other Loan Document, or (iii) prohibiting or restricting
the ability of any Subsidiary to make or pay dividends or distributions
to the Guarantor or the Borrower.

     (j) Pro Forma Calculations. The Borrower shall comply with
the financial ratios set forth in SECTIONS 6.1(a), (b) and (e) as of the
date of each Borrowing. The Borrower shall recalculate such financial
ratios by adding the amount equal to the Indebtedness associated with
such Borrowing to the Indebtedness reflected on the most recently
available financial statements, and adding thereto any Indebtedness
incurred since the date of such financial statement (less any
Indebtedness repaid, retired, or forgiven during such period) and adding
thereto the value of such assets (determined at cost) acquired with such
Indebtedness to Total Value and Total Unencumbered Value, if applicable
(less the value of any assets sold during such period). The Borrower
shall deliver an officer’s certificate, signed by the Financial Officer
of the Borrower, certifying that the pro forma calculations as of the
date of such Borrowing demonstrate the Borrower’s compliance with the
covenants and financial ratios set forth in SECTIONS 6.1(a), (b) and (e).

     (k) Covenant Calculations. For purposes of the calculations
to be made pursuant to SECTIONS 6.1(a) through (h) (and the definitions
used therein), the relevant financial statements and terms will (1) be
adjusted to include minority interests relating to the Borrower’s
operating partnership units and (2) exclude the effects of consolidation
of investments in non-wholly owned subsidiaries under Interpretation No.
46 of the Financial Accounting Standards Board.

     SECTION 6.2. Liens. The Credit Parties 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; and

     (b) Liens securing Secured Indebtedness, the incurrence of which is
not prohibited by Article VI.

     SECTION 6.3. Fundamental Changes. (a) The Credit Parties will not,
and will not permit any Subsidiary to, merge into or consolidate with 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 any substantial part of its assets, or all or
substantially all of the stock of any of the Subsidiaries (in each case,
whether now owned or hereafter acquired), or liquidate or dissolve, except
that, if at the time thereof and immediately after giving effect thereto no
Default shall have occurred and be continuing (i) any Person may merge into
either Credit Party in a transaction in which such Credit Party is the
surviving Person, (ii) any Subsidiary may merge into any Subsidiary in a
transaction in which the surviving entity is a Subsidiary, (iii) any Subsidiary
may sell, transfer, lease or otherwise dispose of its assets to either Credit
Party or to another Subsidiary and (iv) any Subsidiary may liquidate or
dissolve if the Credit Parties determine in good faith that such liquidation or
dissolution is in the best interests of the Credit Parties and is not
materially disadvantageous to the Lenders;
provided that any such merger involving a Person that is not a
wholly owned Subsidiary immediately prior to such merger shall not be permitted
unless also permitted by SECTION 6.4.

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     (b) The Guarantor, the Borrower and the Subsidiaries shall not
engage in any business, enterprise or activity other than (a) the
businesses of operating primarily as the owner and lessor of automotive
properties under triple-net leases with multi-site, multi-franchised
automotive dealerships or other automotive-related businesses, (b) any
business or activities which are substantially similar, related or
incidental thereto, and (c) the making of Permitted Investments.

     SECTION 6.4. Investments, Loans, Advances, Guaranty Obligations and
Acquisitions. The Credit Parties will not, and will not permit any of the
Subsidiaries to, purchase, hold or acquire (including pursuant to any merger
with any Person that was not a wholly owned Subsidiary prior to such merger)
any capital stock, evidences of indebtedness or other securities (including any
option, warrant or other right to acquire any of the foregoing) of, make or
permit to exist any loans or advances to, enter into any Guaranty Obligations
with respect to, or make or permit to exist any investment or any other
interest in, any other Person, or purchase or otherwise acquire (in one
transaction or a series of transactions) any assets of any other Person
constituting a business unit (collectively, “Investments”), except
Permitted Investments.

     SECTION 6.5. Intentionally Omitted

     SECTION 6.6. Disposition of Assets. The Credit Parties will not,
and will not permit any Subsidiary to, sell, transfer and otherwise dispose of
any asset unless the Credit Parties comply with SECTION 5.13 and after giving
effect thereto no Default exists.

     SECTION 6.7. Transactions with Affiliates. The Credit Parties will
not, and will not permit any Subsidiary 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 such Credit Party or such Subsidiary
than could be obtained on an arm’s-length basis from unrelated third parties,
(b) transactions between or among the Credit Parties and (c) any Restricted
Payment permitted by SECTION 6.1(h).

     SECTION 6.8. Fiscal Year. The Guarantor and the Borrower shall
not, and shall not permit any Subsidiary to, change its Fiscal Year for
accounting or tax purposes from a period consisting of the 12-month period
ending on December 31 of each calendar year.

     SECTION 6.9. Margin Regulations; Securities Laws. Neither of the
Credit Parties nor any of the Subsidiaries shall use all or any portion of the
proceeds of any credit extended under this Agreement to purchase or carry
Margin Stock.

     SECTION 6.10. ERISA. The Credit Parties shall not and shall not
permit any Subsidiary or other ERISA Affiliate of the Credit Parties to:

     (i) engage in any prohibited transaction described in Sections
406 of ERISA or 4975 of the Internal Revenue Code for which a
statutory or class exemption is not available or a private
exemption has not been previously obtained from the DOL, except to
the extent engaging in such transaction would not have a Material
Adverse Effect;

     (ii) permit to exist any accumulated funding deficiency (as
defined in Sections 302 of ERISA and 412 of the Code), with respect
to any Benefit Plan, whether or not waived;

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     (iii) fail to pay timely required contributions or annual
installments due with respect to any waived funding deficiency to
any Benefit Plan;

     (iv) terminate any Benefit Plan which would result in any
liability of Borrower or any ERISA Affiliate under Title IV of
ERISA;

     (v) fail to make any contribution or payment to any
Multiemployer Plan which Borrower or any ERISA Affiliate may be
required to make under any agreement relating to such Multiemployer
Plan, or any law pertaining thereto, except to the extent such
failure would not have a Material Adverse Effect;

     (vi) fail to pay any required installment or any other payment
required under Section 412 of the Code on or before the due date
for such installment or other payment; or

     (vii) amend a Benefit Plan resulting in an increase in current
liability for the plan year such that the Borrower or any ERISA
Affiliate is required to provide security to such Plan under
Section 401(a)(29) of the Code.

ARTICLE VII

EVENTS OF DEFAULT

     SECTION 7.1. The occurrence of any of the specified events or conditions
set forth in this SECTION 7.1 shall constitute an event of default(“Event of
Default”):

     (a) the Borrower shall fail to pay any principal of any Loan or any
reimbursement obligation in respect of any LC Disbursement 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;

     (b) the Credit Parties 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 three Business Days;

     (c) any representation or warranty made or deemed made by or on
behalf of the Credit Parties or any Subsidiary in or in connection with
this Agreement or any other Credit Document or any amendment or
modification hereof or thereof or waiver hereunder or thereunder, 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 false
or misleading in any material respect when made or deemed made, and if
the condition that renders such representation or warranty false or
misleading is capable of being rectified, such condition is not rectified
for a period of 30 days after the date on which the Credit Parties first
became aware of such misrepresentation.;

     (d) any of the Credit Parties or any Subsidiary shall fail to
observe or perform any covenant, condition or agreement contained in
SECTION 5.2, SECTION 5.3 (with respect to the existence of the Credit
Parties) or SECTION 5.8 or in ARTICLE VI;

     (e) any of the Credit Parties or any Subsidiary shall fail to
observe or perform any covenant, condition or agreement contained in this
Agreement (other than those specified in

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clause (a), (b) or (d) of this
Article), and such failure shall continue unremedied for a period of 30
days after the earlier of a Credit Party becoming aware of such default
and notice thereof from the Administrative Agent to the Borrower (which
notice will be given at the request of any Lender); provided,
however, (but excluding any breach under SECTIONS 5.1 or 5.13)
that (i) if such breach has not been cured despite reasonable efforts to
cure during such 30-day period, (ii) such Credit Party or Subsidiary is
proceeding with diligence and in good faith to cure such breach, and
(iii) such breach is susceptible of cure within an additional 60 days,
then such 30-day cure period shall be extended to such date, not to
exceed a total of 90 days, as shall be necessary for such Credit Party or
Subsidiary to cure such breach;

     (f) the Guarantor, the Borrower or any other Subsidiary shall fail
to make any payment (whether of principal or interest and regardless of
amount) in respect of any Material Indebtedness, when and as the same
shall become due and payable and such failure shall continue beyond the
giving of any required notice and the expiration of any applicable grace
period and such default has not been waived, in writing, by the holder of
any such Material Indebtedness;

     (g) the Guarantor, the Borrower or any Subsidiary shall default in
the performance or observance of any obligation or condition with respect
to any Material Indebtedness or any other event shall occur or condition
exist beyond the giving of any required notice and the expiration of any
applicable grace period, if the effect of such default, event or
condition is to accelerate the maturity of any such Indebtedness or to
enable or permit (without any further requirement of notice or lapse of
time) the holder or holders of any Material Indebtedness or any trustee
or agent on its or their behalf, to cause any Material Indebtedness to
become due, or to require the prepayment, repurchase, redemption or
defeasance thereof, prior to its scheduled maturity; provided that
this clause (g) 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;

     (h) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed seeking (i) liquidation, reorganization or other
relief in respect of the Guarantor, the Borrower or any Material
Subsidiary which contributes at least $20,000,000 to Total Value or its
debts, or of a substantial part of its assets, under any Federal, state
or foreign bankruptcy, insolvency, receivership or similar law now or
hereafter in effect or (ii) the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for the
Guarantor, the Borrower or any Material Subsidiary which contributes at
least $20,000,000 to Total Value or for a substantial part of its assets,
and, in any such case, such proceeding or petition shall continue
undismissed for 60 days or an order or decree approving or ordering any
of the foregoing shall be entered;

     (i) the Guarantor, 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 (h) of this Article, (iii) apply for or consent to
the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Guarantor, 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;

     (j) the Guarantor, 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;

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     (k) one or more judgments for the payment of money in an aggregate
amount in excess of $10,000,000 shall be rendered against the Guarantor,
the Borrower, any Material Subsidiary or any combination thereof and the
same shall remain undischarged for a period of 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 Guarantor, the Borrower or any Material Subsidiary to enforce any
such judgment;

     (l) 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
Consolidated Businesses in an aggregate amount exceeding (i) $1,000,000
in any year or (ii) $2,000,000 for all periods; or

     (m) a Change in Control shall occur.

     SECTION 7.2. Upon the occurrence and during the continuance of an Event of
Default (other than an Event of Default with respect to the Guarantor or the
Borrower described in SECTION 7.1(h) or SECTION 7.1(i)), the Administrative
Agent, with the consent of the Required Lenders may, and at the request of the
Required Lenders shall, by notice to the Credit Parties, take one or more of
the following actions, at the same or different times: (i) terminate the
Revolver Commitments, and thereupon the Revolver Commitments shall terminate
immediately, (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 Credit Parties
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 Credit Parties, (iii) require the delivery of cash
collateral as contemplated by SECTION 2.6(j), and (iv) enforce any rights and
exercise any rights and remedies available under any Credit Document or
otherwise; and in case of any Event of Default with respect to the Guarantor or
the Borrower described in SECTION 7.1(h) or SECTION 7.1(i), the Revolver
Commitments shall automatically terminate and the principal of the Loans then
outstanding, together with accrued interest thereon and all fees and other
obligations of the Credit Parties 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 Credit Parties.

ARTICLE VIII

THE ADMINISTRATIVE AGENT

     Each of the Lenders and the Issuing Bank 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
Credit Parties 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

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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 9.2), 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 Credit Parties or any Subsidiary 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 9.2) 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 Credit Parties 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.

     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 Credit Parties), 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 (i) resign at
any time by notifying the Lenders, the Issuing Bank and the Borrower or (ii) be
removed for willful misconduct or gross negligence by written notice from the
Required Lenders and with the consent of the Borrower; provided, that no
consent of the Borrower shall be required during the existence and continuance
of an Event of Default. Upon any
such resignation or removal, 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 30 days after the Administrative Agent (x) gives notice of
its resignation or (y) is given notice of its removal, then the retiring or
removed Administrative Agent may, on behalf of the Lenders and the Issuing
Bank, 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

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become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent, and the retiring or
removed 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 or removal hereunder, the provisions of this
Article and SECTION 9.3 shall continue in effect for the benefit of such
retiring or removed 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.

ARTICLE IX

MISCELLANEOUS

     SECTION 9.1. Notices. 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 Credit Parties, to them at Capital Automotive
REIT, 8270 Greensboro Drive, Suite 950, McLean, VA 22102, Attention
of Treasurer (Telecopy No. (703) 288-3375)

with a copy of any notice delivered pursuant to Articles 4A
or 7 to Winston & Strawn LLP, 1400 L Street, NW, Washington,
DC 20005, Attention of Richard F. Williamson (Telecopy No.
(202) 371-5950);

     (ii) if to the Administrative Agent, to JPMorgan Chase Bank,
Loan and Agency Services Group, 1111 Fannin Street, 10th Floor,
Houston, TX 77002, (Telecopy No. (713) 750-2892), with a copy to
JPMorgan Chase Bank, 277 Park Avenue, 3rd Floor, New York 10172,
Attention of Marc E. Costantino (Telecopy No. (646) 534-0574);

     (iii) if to the Issuing Bank, to JPMorgan Chase Bank, 270 Park
Avenue, 15th Floor, New York, NY 10017, Attention of Christina
Gould (Telecopy No. (212) 270-5313);

     (iv) if to the Swingline Lender, to JPMorgan Chase Bank, Loan
and Agency Services Group, 1111 Fannin Street, 10th Floor, Houston,
TX 77002, (Telecopy No. (713) 750-2892); and

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

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     (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 9.2. Waivers; Amendments. (a) No failure or delay by the
Administrative Agent, the Issuing Bank 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, the Issuing Bank 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 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 or issuance of a Letter of
Credit shall not be construed as a waiver of any Default, regardless of whether
the Administrative Agent, any Lender or the Issuing Bank 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 the
Revolver Commitment of any Lender without the written consent of such
Lender, (ii) reduce the principal amount of any Loan or LC Disbursement
or reduce the rate of interest thereon, or reduce any fees payable
hereunder, without the written consent of each Lender affected thereby,
(iii) postpone the Revolving Loan Maturity Date, the Term Loan Maturity
Date or any other scheduled date of payment of the principal amount of
any Loan or LC Disbursement, 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 Revolver Commitment,
without the written consent of each Lender affected thereby, other than
as expressly permitted in SECTION 2.10(f) with respect to the one year
extension of the Revolving Loan Maturity Date, (iv) change SECTION
2.18(b) or SECTION 2.18(c) in a manner that would alter the pro rata
sharing of payments required thereby, without the written consent of each
Lender, (v) release the Guarantor from its obligations under the Credit
Documents, or (vi) 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, the Issuing Bank
or the Swingline Lender hereunder without the prior written consent of
the Administrative Agent, the Issuing Bank or the Swingline Lender, as
the case may be. Notwithstanding the foregoing, no amendment, waiver or
consent shall, unless in writing and signed by the Designating Lender on
behalf of its Designated Bank affected thereby, (a) subject

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such
Designated Bank to any additional obligations, (b) reduce the principal
of, interest on, or other amounts due with respect to, the Designated
Bank Note made payable to such Designated Bank, or (c) postpone any date
fixed for any payment of principal of, or interest on, or other amounts
due with respect to, the Designated Bank Note made payable to the
Designated Bank.

     SECTION 9.3. Expenses; Indemnity; Damage Waiver. 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
the syndication of the credit facilities provided for herein, the preparation
and administration of this Agreement or any amendments, modifications or
waivers of the provisions hereof (whether or not the transactions contemplated
hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket
expenses incurred by the Issuing Bank in connection with the issuance,
amendment, renewal or extension of any Letter of Credit or any demand for
payment thereunder and (iii) all out-of-pocket expenses incurred by the
Administrative Agent, the Issuing Bank or any Lender, including the fees,
charges and disbursements of any counsel for the Administrative Agent, the
Issuing Bank 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 or Letters of Credit issued
hereunder, including all such out-of-pocket expenses incurred during any
workout, restructuring or negotiations in respect of such Loans or Letters of
Credit.

     (b) The Borrower shall indemnify the Administrative Agent, the
Issuing Bank 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, 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 or any other transactions contemplated
hereby, (ii) any Loan or Letter of Credit or the use of the proceeds
therefrom (including any refusal by the Issuing Bank to honor a demand
for payment under a Letter of Credit if the documents presented in
connection with such demand do not strictly comply with the terms of such
Letter of Credit), (iii) any actual or alleged presence or release of
Hazardous 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, the Issuing Bank or the
Swingline Lender under paragraph (a) or (b) of this Section, each Lender
severally agrees to pay to the Administrative Agent, the Issuing Bank or
the Swingline Lender, as the case may be, 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, the Issuing Bank or the
Swingline Lender in its capacity as such.

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     (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, the Transactions, any Loan or Letter of
Credit or the use of the proceeds thereof.

     (e) All amounts due under this Section shall be payable promptly
after written demand therefor.

     SECTION 9.4. Successors and Assigns. 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 (including any
Affiliate of the Issuing Bank that issues any Letter of Credit), 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 (including any Affiliate of the Issuing Bank that issues any
Letter of Credit), 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, the Issuing Bank and the Lenders)
any legal or equitable right, remedy or claim under or by reason of this
Agreement.

     (b) 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 Revolver Commitment and the Loans at the time owing to it)
with the prior written consent (such consent not to be unreasonably
withheld) of:

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

     (B) the Administrative Agent; and

     (C) the Issuing Bank.

     (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 Revolver
Commitment or Loans of any Class, the amount of the Revolver
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 under
clause (a), (b), (h) or (i) of Article VII 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

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Agreement; provided that an assigning Lender may assign a
proportionate part of its rights and obligations in respect
of only the Term Loan or the Revolving Loan and Revolving
Commitments;

     (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 payable to the Administrative Agent’s own account; and

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

     (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
SECTION 2.15, SECTION 2.16, SECTION 2.17 and SECTION 9.3). Any
assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this SECTION 9.4 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 Revolver Commitment of, and principal amount of the Loans and
LC Disbursements 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, the Issuing Bank 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, the Issuing Bank 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, the
Administrative Agent, the Issuing Bank or the Swingline Lender, sell
participations to one or more banks or other

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entities (a
“Participant”) in all or a portion of such Lender’s rights and
obligations under this Agreement (including all or a portion of its
Revolver 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, the Issuing Bank and the other Lenders shall
continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement. Any agreement
or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any
provision of this Agreement; provided that such agreement or
instrument may provide that such Lender will not, without the consent of
the Participant, agree to any amendment, modification or waiver described
in the first proviso to SECTION 9.2(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 SECTION 2.15,
SECTION 2.16, and SECTION 2.17 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 9.8 as though it were a
Lender, provided such Participant agrees to be subject to SECTION 2.18(c)
as though it were a Lender.

     (ii) A Participant shall not be entitled to receive any
greater payment under SECTION 2.15 or 2.17 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
2.17 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 2.17(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.

     (e) Any Lender (each, a “Designating Lender”) may at any time
designate one Designated Bank to fund Competitive Loans on behalf of such
Designating Lender subject to the terms of this SECTION 9.4(e) and the
provisions in 9.4(b) and (c) shall not apply to such designation. No
Lender may designate more than one (1) Designated Bank. The parties to
each such designation shall execute and deliver to the Administrative
Agent for its acceptance a Designation Agreement. Upon such receipt of
an appropriately completed Designation
Agreement executed by a Designating Lender and a designee
representing that it is a Designated Bank, the Administrative Agent will
accept such Designation Agreement and will give prompt notice thereof to
the Company, whereupon, (i) the Borrower shall execute and deliver to the
Designating Bank a Designated Bank Note payable to the order of the
Designated Bank, (ii) from and after the effective date specified in the
Designation Agreement, the Designated Bank shall become a party to this
Agreement with a right to make Competitive Loans on behalf of its
Designating Lender pursuant to SECTION 2.4 after the Borrower have
accepted a Competitive Loan (or portion thereof) of such Designating
Lender, and (iii) the Designated Bank shall not be required to make
payments with respect to any obligations in this Agreement except to the
extent of excess cash flow of such Designated Bank which is not otherwise
required to repay obligations

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of such Designated Bank which are then due
and payable; provided, however, that regardless of such designation and
assumption by the Designated Bank, the Designating Lender shall be and
remain obligated to the Borrower, the Administrative Agent and the other
Lenders for each and every of the obligations of the Designating Lender
and its related Designated Bank with respect to this Agreement,
including, without limitation, any indemnification obligations hereunder
and any sums otherwise payable to the Borrower by the Designated Bank.
Each Designating Lender shall serve as the administrative agent of the
Designated Bank and shall on behalf of, and to the exclusion of, the
Designated Bank: (i) receive any and all payments made for the benefit of
the Designated Bank and (ii) give and receive all communications and
notices and take all actions hereunder, including, without limitation,
votes, approvals, waivers, consents and amendments under or relating to
this Agreement and the other Loan Documents. Any such notice,
communication, vote, approval, waiver, consent or amendment shall be
signed by the Designating Lender as administrative agent for the
Designated Bank and shall not be signed by the Designated Bank on its own
behalf but shall be binding on the Designated Bank to the same extent as
if actually signed by the Designated Bank. The Borrower, the
Administrative Agent, and Lenders may rely thereon without any
requirement that the Designated Bank sign or acknowledge the same. No
Designated Bank may assign or transfer all or any portion of its interest
hereunder or under any other Loan Document, other than assignments to the
Designating Lender which originally designated such Designated Bank.

     SECTION 9.5. 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 and issuance of any Letters of Credit, regardless of any investigation
made by any such other party or on its behalf and notwithstanding that the
Administrative Agent, the Issuing Bank 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 or any
Letter of Credit is outstanding and so long as the Revolver Commitments have
not expired or terminated. The provisions of SECTION 2.15, SECTION 2.16,
SECTION 2.17 and SECTION 9.3 and Article VIII shall survive and remain in full
force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Loans, the expiration or termination
of the Letters of Credit and the Revolver Commitments or the termination of
this Agreement or any provision hereof.

     SECTION 9.6. 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 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 4.1, 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 9.7. 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

-70-

 

remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

     SECTION 9.8. Right of Setoff. Subject to SECTION 2.18(c), 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 9.9. Governing Law; Jurisdiction; Consent to Service of
Process. 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, the
Issuing Bank 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 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 9.1. 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 CONTEMPLATED HEREBY
(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

-71-

 

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,
the Issuing Bank 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, the
Issuing Bank or any Lender on a nonconfidential basis from a source other than
the Borrower. For the 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, the Issuing Bank 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 information
is clearly identified at the time of delivery as confidential. Any Person
required to maintain the confidentiality of Information as provided in this
Section shall be considered to have complied with its obligation to do so if
such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.

     SECTION 9.13. USA PATRIOT Act. Each Lender hereby notifies the
Credit Parties that pursuant to the requirements of the USA Patriot Act (Title
III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”),
it is required to obtain, verify and record information that identifies the
Credit Parties, which information includes the names and addresses of the
Credit Parties and other information that will allow such Lender to identity
the Credit Parties in accordance with the Act.

     SECTION 9.14. 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.

-72-

 

     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.

	 	 	 	 	 	 	 	 	 
	THE BORROWER:	 	CAPITAL AUTOMOTIVE L.P.,
	 
	 	 	 	 	 	 	 	 
	 	 	By: Capital Automotive REIT, its General Partner
	 
	 	 	 	 	 	 	 	 
	

	 	By:	/s/ David S. Kay
	 	 	 	
 
	

	 	 	 	 	 	Name:
	 	David S. Kay
	

	 	 	 	 	 	Title:
	 	Senior Vice President,

Chief Financial Officer & Treasurer
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	8270 Greensboro Drive
	

	 	 	 	 	 	Suite 950
	

	 	 	 	 	 	McLean, Virginia 22102

	 
	 	 	 	 	 	 	 	 
	 	 	Taxpayer Identification
Number: 54-1882000
	 
	 	 	 	 	 	 	 	 
	THE GUARANTOR:	 	CAPITAL AUTOMOTIVE REIT
	 
	 	 	 	 	 	 	 	 
	

	 	By:	/s/ David S. Kay
	 	 	 	
 
	

	 	 	 	 	 	Name:
	 	David S. Kay
	

	 	 	 	 	 	Title:
	 	Senior Vice President,

Chief Financial Officer & Treasurer
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	8270 Greensboro Drive
	

	 	 	 	 	 	Suite 950
	

	 	 	 	 	 	McLean, Virginia 22102

Signature Page to Revolving Credit and Term Loan Agreement

 

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK
	 
	 	 	 	 
	

	 	By:
	 	/s/ Marc E. Costantino
	

	 	 	 	
 
	

	 	 	 	Name: Marc E. Costantino
	

	 	 	 	Title: Vice President

Signature Page to Revolving Credit and Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.
	 
	 	 	 	 
	

	 	By:
	 	/s/ M. Patricia Kay
	

	 	 	 	
 
	

	 	 	 	Name: M. Patricia Kay
	

	 	 	 	Title: Senior Vice President

Signature Page to Revolving Credit and Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ Cynthia A. Bean
	

	 	 	 	
 
	

	 	 	 	Name: Cynthia A. Bean
	

	 	 	 	Title: Vice President

Signature Page to Revolving Credit and Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Laura Waites
	

	 	 	 	
 
	

	 	 	 	Name: Laura Waites

Title: Vice President

Signature Page to Revolving Credit and Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	ROYAL BANK OF CANADA
	 
	 	 	 	 
	

	 	By:
	 	/s/ Gordon MacArthur
	

	 	 	 	
 
	

	 	 	 	Name: Gordon MacArthur
	

	 	 	 	Title: Authorized Signatory

Signature Page to Revolving Credit and Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	CREDIT SUISSE FIRST BOSTON,
 acting
through its Cayman Islands Branch
	 
	 	 	 	 
	

	 	By:
	 	/s/ William O’Daly
	

	 	 	 	
 
	

	 	 	 	Name: William O’Daly
	

	 	 	 	Title: Director
	 
	 	 	 	 
	

	 	By:
	 	/s/ Rianka Mohan
	

	 	 	 	
 
	

	 	 	 	Name: Rianka Mohan
	

	 	 	 	Title: Associate

Signature Page to Revolving Credit and Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	CITICORP NORTH AMERICA,
INC.

CITICORP, N.A., Inc.

	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael Chiopak
	

	 	 	 	
 
	

	 	 	 	Name: Michael Chiopak
	

	 	 	 	Title: Vice President

Signature Page to Revolving Credit and Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	MANUFACTURERS AND TRADERS

TRUST COMPANY
	 
	 	 	 	 
	

	 	By:
	 	/s/ Matthew Lind
	

	 	 	 	
 
	

	 	 	 	Name: Matthew Lind
	

	 	 	 	Title: Vice President

Signature Page to Revolving Credit and Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	TOYOTA MOTOR CREDIT CORPORATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ Mike Taylor
	

	 	 	 	
 
	

	 	 	 	Name: Mike Taylor
	

	 	 	 	Title: Corporate Mgr Dealer Relations

Signature Page to Revolving Credit and Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	BRANCH BANKING
AND TRUST COMPANY
	 
	 	 	 	 
	

	 	By:
	 	/s/ Ronald P. Gudbrandsen
	

	 	 	 	
 
	

	 	 	 	Name: RONALD P. GUDBRANDSEN
	

	 	 	 	Title: SENIOR VICE PRESIDENT

Signature Page to Revolving Credit and Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	CHEVY CHASE BANK, F.S.B.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Eric A. Lawrence
	

	 	 	 	
 
	

	 	 	 	Name: Eric A. Lawrence
	

	 	 	 	Title: Group Vice President

Signature Page to Revolving Credit and Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	COMERICA BANK
	 
	 	 	 	 
	

	 	By:
	 	/s/ Charles Weddell
	

	 	 	 	
 
	

	 	 	 	Name: Charles Weddell
	

	 	 	 	Title: Vice President

Signature Page to Revolving Credit and Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	FIRST HORIZON BANK, A DIVISION OF

FIRST TENNESSEE BANK N.A.
	 
	 	 	 	 
	

	 	By:
	 	/s/ J. Jordan O’Neill, III
	

	 	 	 	
 
	

	 	 	 	Name: J. Jordan O’Neill III
	

	 	 	 	Title: Senior Vice President

Signature Page to Revolving Credit and Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	UFJ BANK LIMITED
	 
	 	 	 	 
	

	 	By:
	 	/s/ Yoichi Orikasa
	

	 	 	 	
 
	

	 	 	 	Name: Yoichi Orikasa
	

	 	 	 	Title: Deputy General Manager

Signature Page to Revolving Credit and Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	ALLIED IRISH BANKS, p.l.c.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Anthony O’Reilly
	

	 	 	 	
 
	

	 	 	 	Name: Anthony O’Reilly
	

	 	 	 	Title: Vice President
	

	 	By:
	 	/s/ Denise Magyer
	

	 	 	 	
 
	

	 	 	 	Name: Denise Magyer
	

	 	 	 	Title: Vice President

Signature Page to Revolving Credit and Term Loan Agreement

[EXHIBITS AND SCHEDULES INTENTIONALLY OMITTED]

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