Document:

exh10_1.htm

    EXHIBIT
10.1

     

     FROZEN
FOOD EXPRESS INDUSTRIES, INC.

     

     

    2005
NON-EMPLOYEE DIRECTOR RESTRICTED STOCK PLAN

     

     

    (As
Restated Effective April 1, 2008)

     

     

    1. PURPOSE.

     

     

    The
purposes of the Frozen Food Express Industries, Inc., 2005 Non-Employee Director
Restricted Stock Plan (this "Plan") are to promote the growth and prosperity of
Frozen Food Express Industries, Inc. (the "Company"), to attract and retain the
best available people to serve as independent directors of the Company and to
encourage stock ownership by such directors and thus increase their personal
interest in the Company's success.

     

     

    2. ADMINISTRATION.

     

     

    (a) This Plan
shall be administered by the Board of Directors of the Company (the "Board").
The Board may from time to time prescribe, amend and rescind such rules,
regulations, provisions and procedures, consistent with the terms of this Plan,
as may be advisable in its opinion in the administration of this Plan, and
subject to the terms of this Plan shall prescribe the provisions of the
restricted stock agreements to be issued hereunder and make all other
determinations and interpretations necessary or advisable for administering this
Plan and the stock option agreements.

     

     

    (b) A
majority of the Board shall constitute a quorum, and the acts of a majority of
the members present at any meeting at which a quorum is present, or acts
approved in writing by all members of the Board, shall be the acts of the
Board.  All decisions, determinations and interpretations of the Board
shall be final and binding on all persons interested in this Plan.

     

     

    3. SHARES
AVAILABLE FOR AWARD UNDER THIS PLAN.

     

     

    (a) The stock
to be subject to awards granted under this Plan shall be shares of the Company's
common stock, par value $1.50 per share (the "Common Stock"), either authorized
and unissued or treasury stock.

     

     

    (b) In the
event of a merger, consolidation, reorganization, recapitalization, subdivision
or any other similar change affecting the stock of the Company, an appropriate
adjustment to reflect any such change shall be made in the total number and
class of shares for which awards may be granted, the number and class of shares
underlying awards to be granted in accordance with Section 4(a), and the number
and class of shares.  Such adjustment shall be as determined by the
Board; provided, however, that any such computation shall be rounded to the
nearest whole share and no such modification shall require the issuance of
fractional shares.

     

     

    (c) The total
amount of stock reserved for issuance under the Plan in the form of shares of
Restricted Stock shall be 100,000 shares (subject to adjustment in accordance
with Section 3(b)).

     

     

    (d) In the
event any outstanding award for any reason expires, is forfeited, cancelled or
otherwise terminates, the shares allocable to the award shall again be available
for issuance under this Plan.

     

     

    (e) Nothing
in this Plan or in any award granted pursuant to this Plan shall confer on any
individual any right to continue as a director of the Company or interfere in
any way with the removal of such person as a director in accordance with the
Articles of Incorporation and Bylaws.

     

     

    4. ELIGIBILITY
AND AWARDS.

     

     

    Each
director of the Company who is not at the time of the grant of an award an
officer or employee of the Company ("Non-Employee Director") shall be eligible
to receive an award of restricted stock under this Plan on the day of a
Non-Employee Director's initial appointment or election (whichever comes first)
to the Board. Annually thereafter, on the day of each annual meeting of
stockholders of the Company that occurs after the date of such Director’s
initial appointment or election to the Board, such Director shall receive an
award of restricted stock under this Plan. Each such date (of appointment,
election or the annual stockholders’ meeting) shall be the “Date of Grant” with
respect to an award.  The Board shall determine from time to time the
number of shares of Restricted Stock to be issued to an eligible Non-Employee
Director.

     

     

    5. VESTING
OF RESTRICTED STOCK.

     

     

    Unless
otherwise determined by the Board and set forth in the Award Agreement, all
shares of Restricted Stock awarded under this Plan shall vest over a period of
three (3) years from the Date of Grant, one-third (1/3) on each anniversary of
the Date of Grant, provided that the Non-Employee Director continues to serve as
such at each vesting date.

     

     

    
      	
               
      

            	
              If
      a Non-Employee Director ceases to serve as a Director by reason of his
      Retirement, death, Disability or failure to be re-elected by the Company’s
      shareholders, the shares of Restricted Stock theretofore granted to such
      director shall become fully vested as of the date of his or her ceasing to
      serve as a Director.  “Retirement” shall mean the Director’s
      ceasing to serve as a Director on account of retirement at any time on or
      after the date on which the Director reaches age sixty-five (65) (or such
      other age as is set forth in the Award Agreement, in the discretion of the
      Board).  “Disability” shall have the meaning set forth in the
      Company’s 2005 Stock Incentive
Plan.

            

    

     

     

    
      	
               
      

            	
              If
      there is a Change of Control of the Company, the shares of Restricted
      Stock theretofore granted to such director shall become fully vested as of
      the Change of Control.  A “Change of Control” shall have the
      meaning set forth in the Company’s 2005 Stock Incentive
    Plan.

            

    

     

     

    6. TERMS AND
CONDITIONS OF RESTRICTED STOCK.

     

    Shares of Restricted Stock
granted hereunder may not be sold, assigned, transferred, pledged or
otherwise encumbered, except as hereinafter provided, until vested in accordance
with paragraph 5.  Except for such restrictions, the Non-Employee
Director as owner of such shares shall have all the rights of a stockholder,
including but not limited to the right to vote such shares and the right to
receive all dividends paid on such shares.

     

    Except as
otherwise determined by the Board in its sole discretion, a Non-Employee
Director whose service as a director terminates prior to full vesting of the
Restricted Stock shall forfeit all non-vested shares of Restricted Stock
remaining subject to any outstanding Restricted Stock Award.

     

    Each
certificate issued in respect of shares of Restricted Stock awarded under the
Plan shall be registered in the name of the Non-Employee Director and, at the
discretion of the Board, each such certificate may be deposited in a bank
designated by the Board.  Each such certificate shall bear the
following (or a similar) legend:

     

    
      	
               
      

            	
              "The
      transferability of this certificate and the shares of stock represented
      hereby are subject to the terms and conditions (including but not limited
      to forfeiture) contained in the Frozen Food Express Industries, Inc. 2005
      Non-Employee Director Restricted Stock Plan and an agreement entered into
      between the registered owner and Frozen Food Express Industries,
      Inc.  A copy of such plan and agreement is on file in the office
      of the Secretary of Frozen Food Express Industries, Inc., 1145 Empire
      Central Place, Dallas, Texas 75247.

            

    

     

    At each
vesting date, Restricted Stock will be transferred free of all restrictions to a
Non-Employee Director (or his or her legal representative, beneficiary or
heir).

     

     

    7. AMENDMENT
AND DISCONTINUANCE.

     

     

    
      	
               
      

            	
              The
      Board may at any time amend this Plan, provided that, except as permitted
      by Section 3(b), no amendment without the approval of shareholders
      shall:  (a) increase the total number of shares of Restricted
      Stock that may be granted, (b) change the class of persons eligible to
      receive shares of Restricted Stock under this Plan, or (c) change the
      provisions relating to the administration of this Plan by the
      Board.

            

    

     

     

    
      	
               
      

            	
              The
      Board may terminate this Plan at any time but such termination shall not
      affect shares of Restricted Stock previously
  granted.

            

    

     

     

    8. RESERVATION
OF SHARES.

     

     

    During
the term of this Plan, the Company shall at all times reserve and keep
available, and will obtain from any regulatory body having jurisdiction any
requisite authority in order to issue such number of shares of its Common Stock
as shall be sufficient to satisfy the requirements of this
Plan.  Inability of the Company to obtain any authority deemed by the
Company's counsel to be necessary to the lawful issuance of any shares of its
stock hereunder shall relieve the Company of any liability in respect of the
nonissuance of such stock as to which such authority shall not have been
obtained.

     

     

    9. SECURITIES
ACT OF 1933.

     

     

    Unless
(a) the shares to be issued upon an award have been effectively registered under
the Securities Act of 1933, as now in force or hereafter amended; or (b) in the
opinion of counsel for the Company, no such registration is necessary, the
Company shall be under no obligation to issue any shares covered by any
award.

     

     

    10. SECTION
16.

     

     

    
      	
               
      

            	
              With
      respect to persons subject to Section 16 of the Securities Exchange Act of
      1934 ("Exchange Act"), transactions under this Plan are intended to comply
      with all applicable provisions of Rule 16b-3 or its successors under the
      Exchange Act.  To the extent any provision of this Plan or
      action by the Board fails to so comply, it shall be deemed null and void,
      to the extent permitted by law and deemed advisable by the
      Board.

            

    

     

     

    11. EFFECTIVE
DATE; TERM OF PLAN.

     

     

    
      	
               
      

            	
              This
      restated Plan shall become effective as of April 1, 2008; provided,
      however, if this Plan is not approved by the holders of a majority of the
      stock of the Company present or represented by proxy and entitled to vote
      at the first annual meeting of shareholders of the Company following April
      1, 2008, any awards granted under this Plan shall be null, void and of no
      force and effect as of their grant date, and this Plan shall
      terminate.  This Plan shall terminate on March 31, 2018, unless
      sooner terminated as provided in this Plan.  At the end of such
      term, this Plan shall expire except for awards then
      outstanding.

            

    

     

    

    
      	 
      	
               

              FROZEN
      FOOD EXPRESS INDUSTRIES, INC.

               

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
               

              Dated:
      May 16, 2008

            	
               

              By:

            	
               

              /s/
      Thomas G. Yetter

            	 
      
	 
      	 
      	
              Thomas
      G. Yetter

              Senior
      Vice President and Chief Financial Officerexhibi10-1.htm

    Exhibit
10.1

    

    
      
        

        

      

      

    

    

    

    

    CREDIT
AGREEMENT

    

    

    Dated
as of May 15, 2008

    

    

    by
and among

    

    REALTY
INCOME CORPORATION,

    as
Borrower,

    

    THE
FINANCIAL INSTITUTIONS PARTY HERETO

    AND
THEIR ASSIGNEES UNDER SECTION 13.6.,

    as
Lenders,

    

    WACHOVIA
BANK, NATIONAL ASSOCIATION,

    as
co-Documentation Agent,

    

    THE
BANK OF NEW YORK,

    as
co-Documentation Agent,

    

    BANK
OF AMERICA, N.A.,

    as
co-Syndication Agent,

    

    REGIONS
BANK,

    as
co-Syndication Agent,

    

    and

    

    WELLS
FARGO BANK, NATIONAL ASSOCIATION,

    as
Administrative Agent and

    sole-lead
Arranger

    

    

    
       

      
        

        

      

    
      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

    
      	
              Article I.
      Definitions

            	 	 	1	 
	
              Section 1.1.  Definitions.

            	 	 	1	 
	
              Section 1.2.  General; References to San
      Francisco Time.

            	 	 	24	 
	
              Article II. Credit
      Facility

            	 	 	24	 
	
              Section 2.1.  Revolving
      Loans.

            	 	 	24	 
	
              Section 2.2.  Bid
      Rate Loans.

            	 	 	25	 
	
              Section 2.3.  Swingline
      Loans.

            	 	 	29	 
	
              Section 2.4.  Rates
      and Payment of Interest on Loans.

            	 	 	31	 
	
              Section 2.5.  Number
      of Interest Periods.

            	 	 	32	 
	
              Section 2.6.  Repayment
      of Loans.

            	 	 	32	 
	
              Section 2.7.  Prepayments.

            	 	 	32	 
	
              Section
      2.8.  Late Charges.

            	 	 	33	 
	
              Section 2.9.  Continuation.

            	 	 	33	 
	
              Section 2.10.  Conversion.

            	 	 	34	 
	
              Section 2.11.  Notes.

            	 	 	34	 
	
              Section 2.12.  Voluntary
      Reductions of the Commitment.

            	 	 	35	 
	
              Section
      2.13.  Extension of Termination Date.

            	 	 	35	 
	
              Section 2.14.  Amount
      Limitations.

            	 	 	36	 
	
              Section 2.15.  Increase
      in Commitments.

            	 	 	37	 
	
              Section 2.16.  Funds
      Transfer Disbursements.

            	 	 	37	 
	
              Article III. Payments,
      Fees and Other General Provisions

            	 	 	38	 
	
              Section 3.1.  Payments.

            	 	 	38	 
	
              Section 3.2.  Pro
      Rata Treatment.

            	 	 	39	 
	
              Section 3.3.  Sharing
      of Payments, Etc.

            	 	 	40	 
	
              Section 3.4.  Several
      Obligations.

            	 	 	40	 
	
              Section 3.5.  Minimum
      Amounts.

            	 	 	41	 
	
              Section 3.6.  Fees.

            	 	 	41	 
	
              Section 3.7.  Computations.

            	 	 	42	 
	
              Section 3.8.  Usury.

            	 	 	42	 
	
              Section 3.9.  Statements
      of Account; Bill Lead Date Request.

            	 	 	42	 
	
              Section 3.10.  Defaulting
      Lenders.

            	 	 	43	 
	
              Section 3.11.  Taxes.

            	 	 	44	 
	
              Article
      IV.  Unencumbered Pool Properties

            	 	 	46	 
	
              Section
      4.1.  Eligibility of Properties.

            	 	 	46	 
	
              Section
      4.2.  Termination of Designation as Unencumbered Pool
      Property.

            	 	 	46	 
	
              Article V. Yield
      Protection, Etc.

            	 	 	46	 
	
              Section 5.1.  Additional
      Costs; Capital Adequacy.

            	 	 	46	 
	
              Section 5.2.  Suspension
      of Swingline Loans and LIBOR Loans.

            	 	 	48	 
	
              Section 5.3.  Illegality.

            	 	 	49	 
	
              Section 5.4.  Compensation.

            	 	 	49	 
	
              Section 5.5.  Treatment
      of Affected Loans.

            	 	 	50	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              Section 5.6.  Change
      of Lending Office.

            	 	 	51	 
	
              Section 5.7.  Affected
      Lenders.

            	 	 	51	 
	
              Section 5.8.  Assumptions
      Concerning Funding of LIBOR Loans and Swingline
    Loans.

            	 	 	52	 
	
              Article VI. Conditions
      Precedent

            	 	 	52	 
	
              Section 6.1.  Initial
      Conditions Precedent.

            	 	 	52	 
	
              Section 6.2.  Conditions
      Precedent to All Loans.

            	 	 	54	 
	
              Section 6.3.  Conditions
      as Covenants.

            	 	 	55	 
	
              Article VII.
      Representations and Warranties

            	 	 	55	 
	
              Section 7.1.  Representations
      and Warranties.

            	 	 	55	 
	
              Section 7.2.  Survival
      of Representations and Warranties, Etc.

            	 	 	61	 
	
              Article VIII.
      Affirmative Covenants

            	 	 	61	 
	
              Section 8.1.  Preservation
      of Existence and Similar Matters.

            	 	 	61	 
	
              Section 8.2.  Compliance
      with Applicable Law.

            	 	 	61	 
	
              Section 8.3.  Maintenance
      of Property.

            	 	 	62	 
	
              Section 8.4.  Conduct
      of Business.

            	 	 	62	 
	
              Section 8.5.  Insurance.

            	 	 	62	 
	
              Section 8.6.  Payment
      of Taxes and Claims.

            	 	 	62	 
	
              Section 8.7.  Books
      and Records; Inspections.

            	 	 	62	 
	
              Section 8.8.  Use
      of Proceeds.

            	 	 	63	 
	
              Section 8.9.  Environmental
      Matters.

            	 	 	63	 
	
              Section 8.10.  Further
      Assurances.

            	 	 	63	 
	
              Section
      8.11.  Material Contracts.

            	 	 	64	 
	
              Section 8.12.  REIT
      Status.

            	 	 	64	 
	
              Section 8.13.  Exchange
      Listing.

            	 	 	64	 
	
              Section 8.14.  Guarantors.

            	 	 	64	 
	
              Article IX.
      Information

            	 	 	64	 
	
              Section 9.1.  Quarterly
      Financial Statements.

            	 	 	65	 
	
              Section 9.2.  Year-End
      Statements.

            	 	 	65	 
	
              Section 9.3.  Compliance
      Certificate.

            	 	 	65	 
	
              Section 9.4.  Other
      Information.

            	 	 	65	 
	
              Article X. Negative
      Covenants

            	 	 	68	 
	
              Section 10.1.  Financial
      Covenants.

            	 	 	68	 
	
              Section 10.2.  Negative
      Pledge.

            	 	 	71	 
	
              Section 10.3.  Restrictions
      on Intercompany Transfers.

            	 	 	71	 
	
              Section 10.4.  Merger,
      Consolidation, Sales of Assets and Other
    Arrangements.

            	 	 	71	 
	
              Section 10.5.  Plans.

            	 	 	72	 
	
              Section 10.6.  Fiscal
      Year.

            	 	 	72	 
	
              Section 10.7.  Modifications
      of Organizational Documents.

            	 	 	73	 
	
              Section 10.8.  Modifications
      to Material Contracts.

            	 	 	73	 
	
              Section 10.9.  Transactions
      with Affiliates.

            	 	 	73	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              Section 10.10.  Limitations
      on Non-Guarantor Subsidiaries.

            	 	 	73	 
	
              Article XI.
      Default

            	 	 	74	 
	
              Section 11.1.  Events
      of Default.

            	 	 	74	 
	
              Section 11.2.  Remedies
      Upon Event of Default.

            	 	 	77	 
	
              Section 11.3.  Remedies
      Upon Default.

            	 	 	78	 
	
              Section 11.4.  Marshaling;
      Payments Set Aside.

            	 	 	78	 
	
              Section 11.5.  Allocation
      of Proceeds.

            	 	 	79	 
	
              Section 11.6.  Performance
      by Agent.

            	 	 	79	 
	
              Section 11.7.  Rights
      Cumulative.

            	 	 	80	 
	
              Article XII. The
      Agent

            	 	 	80	 
	
              Section 12.1.  Appointment
      and Authorization.

            	 	 	80	 
	
              Section 12.2.  Agent’s
      Reliance, Etc.

            	 	 	81	 
	
              Section 12.3.  Notice
      of Defaults.

            	 	 	82	 
	
              Section 12.4.  Wells
      Fargo as Lender.

            	 	 	82	 
	
              Section
      12.5.  Approvals of Lenders.

            	 	 	82	 
	
              Section 12.6.  Lender
      Credit Decision, Etc.

            	 	 	83	 
	
              Section 12.7.  Indemnification
      of Agent.

            	 	 	83	 
	
              Section 12.8.  Successor
      Agent.

            	 	 	84	 
	
              Section
      12.9.  Titled Agents.

            	 	 	85	 
	
              Article XIII.
      Miscellaneous

            	 	 	85	 
	
              Section 13.1.  Notices.

            	 	 	85	 
	
              Section 13.2.  Expenses.

            	 	 	86	 
	
              Section 13.3.  Stamp,
      Intangible and Recording Taxes.

            	 	 	87	 
	
              Section 13.4.  Setoff.

            	 	 	87	 
	
              Section 13.5.  Litigation;
      Jurisdiction; Other Matters; Waivers.

            	 	 	87	 
	
              Section 13.6.  Successors
      and Assigns.

            	 	 	89	 
	
              Section 13.7.  Amendments
      and Waivers.

            	 	 	91	 
	
              Section 13.8.  Nonliability
      of Agent and Lenders.

            	 	 	93	 
	
              Section 13.9.  Confidentiality.

            	 	 	93	 
	
              Section 13.10.  Indemnification.

            	 	 	94	 
	
              Section 13.11.  Termination;
      Survival.

            	 	 	95	 
	
              Section 13.12.  Severability
      of Provisions.

            	 	 	96	 
	
              Section 13.13.  GOVERNING
      LAW.

            	 	 	96	 
	
              Section 13.14.  USA
      Patriot Act Notice; Compliance.

            	 	 	96	 
	
              Section 13.15.  Counterparts.

            	 	 	96	 
	
              Section 13.16.  Obligations
      with Respect to Loan Parties.

            	 	 	96	 
	
              Section 13.17.  Independence
      of Covenants.

            	 	 	96	 
	
              Section 13.18.  Limitation
      of Liability.

            	 	 	97	 
	
              Section 13.19.  Entire
      Agreement.

            	 	 	97	 
	
              Section 13.20.  Construction.

            	 	 	97	 
	
              Section
      13.21.  No Novation.

            	 	 	97	 

    

    

    
      
        
           

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              SCHEDULE
      1.1.(A)

            	
              List
      of Loan Parties

            

    

    
      	
              SCHEDULE
      1.1.(B)

            	
              Industrial
      Classifications

            
	SCHEDULE
      4.1. 	Initial
      Unencumbered Pool Properties

    

    
    

    
      	
              SCHEDULE
      7.1.(b)

            	
              Ownership
      Structure

            

    

    
      	
              SCHEDULE
      7.1.(f)

            	
              Properties

            

    

    
      	
              SCHEDULE
      7.1.(g)

            	
              Indebtedness
      and Guaranties; Total Liabilities

            

    

    
      	
              SCHEDULE
      7.1.(h)

            	
              Material
      Contracts

            

    

    
      	
              SCHEDULE
      7.1.(i)

            	
              Litigation

            

    

    
      	
              SCHEDULE
      7.1.(o)

            	
              Environmental
      Matters

            

    

    
      	
              SCHEDULE
      7.1.(r)

            	
              Affiliate
      Transactions

            

    

    

    

    
      	
              EXHIBIT
      A

            	
              Form
      of Assignment and Assumption

            

    

    
      	
              EXHIBIT
      B

            	
              Form
      of Notice of Borrowing

            

    

    
      	
              EXHIBIT
      C

            	
              Form
      of Notice of Continuation

            

    

    
      	
              EXHIBIT
      D

            	
              Form
      of Notice of Conversion

            

    

    
      	
              EXHIBIT
      E

            	
              Form
      of Revolving Note

            

    

    
      	
              EXHIBIT
      F

            	
              Form
      of Notice of Swingline Borrowing

            

    

    
      	
              EXHIBIT
      G

            	
              Form
      of Swingline Note

            

    

    
      	
              EXHIBIT
      H

            	
              Form
      of Bid Rate Quote Request

            

    

    
      	
              EXHIBIT
      I

            	
              Form
      of Bid Rate Quote

            

    

    
      	
              EXHIBIT
      J

            	
              Form
      of Bid Rate Quote Acceptance

            

    

    
      	
              EXHIBIT
      K

            	
              Form
      of Bid Rate Note

            

    

    
      	
              EXHIBIT
      L

            	
              Form
      of Designation Agreement

            

    

    
      	
              EXHIBIT
      M

            	
              Form
      of Extension Request

            

    

    
      	
              EXHIBIT
      N-1

            	
              Form
      of Opinion of Latham & Watkins
LLP

            

    

    
      	
              EXHIBIT
      N-2

            	
              Form
      of Opinion of Venable LLP

            

    

    
      	
              EXHIBIT
      N-3

            	
              Form
      of Opinion of Borrower’s General
Counsel

            

    

    
      	
              EXHIBIT
      O

            	
              Form
      of Guaranty

            

    

    
      	
              EXHIBIT
      P

            	
              Form
      of Compliance Certificate

            

    

    
      	
              EXHIBIT
      Q

            	
              Form
      of Unencumbered Pool Certificate

            

    

    
      	
              EXHIBIT
      R

            	
              Form
      of Closing Certificate

            

    

    
      	
              EXHIBIT
      S

            	
              Form
      of Transfer Authorizer Designation
Form

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    CREDIT
AGREEMENT

    

    THIS
CREDIT AGREEMENT (this “Agreement”) dated as of May 15, 2008 by and among REALTY
INCOME CORPORATION, a corporation formed under the laws of the State of Maryland
(the “Borrower”), each of the financial institutions initially a signatory
hereto together with their assignees under Section 13.6. (the “Lenders”),
WACHOVIA BANK, NATIONAL ASSOCIATION, as co-Documentation Agent, THE BANK OF NEW
YORK, as co-Documentation Agent (each a “Documentation Agent”), BANK OF AMERICA,
N.A., as co-Syndication Agent, REGIONS BANK, as co-Syndication Agent (each a
“Syndication Agent”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Wells Fargo”)
as contractual representative of the Lenders to the extent and in the manner
provided in Article XII. (in such capacity, the “Agent”) and sole lead
Arranger.

    

    WHEREAS,
the Agent and the Lenders desire to make available to the Borrower a
$355,000,000 revolving credit facility, which will include a $50,000,000
swingline subfacility, on the terms and conditions contained
herein.

    

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

    

    

    Article
I. Definitions

     

    Section 1.1.  Definitions.

     

    In addition to terms defined elsewhere
herein, the following terms shall have the following meanings for the purposes
of this Agreement:

    

    “Absolute Rate” has the meaning
given that term in Section 2.2.(c)(ii)(C).

    

    “Absolute Rate Auction” means a
solicitation of Bid Rate Quotes setting forth Absolute Rates pursuant to
Section 2.2.

    

    “Absolute Rate Loan” means a
Bid Rate Loan, the interest rate on which is determined on the basis of an
Absolute Rate pursuant to an Absolute Rate Auction.

    

    “Accession Agreement” means an
Accession Agreement substantially in the form of Annex I to the
Guaranty.

    

    “Additional Costs” has the
meaning given that term in Section 5.1.

    

    “Affiliate” means any Person
(other than the Agent or any Lender): (a) directly or indirectly
controlling, controlled by, or under common control with, the Borrower;
(b) directly or indirectly owning or holding ten percent (10.0%) or more of
any equity interest in the Borrower; or (c) ten percent (10.0%) or more of
whose voting stock or other equity interest is directly or indirectly owned or
held by the Borrower.  For purposes of this definition, “control”
(including with correlative meanings, the terms “controlling”, “controlled by”
and “under common control

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    with”)
means the possession directly or indirectly of the power to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities or by contract or otherwise.  In no
event shall the Agent or any Lender be deemed to be an Affiliate of the
Borrower.

    

    “Agent” has the meaning set
forth in the introductory paragraph hereof and shall include any successor Agent
appointed pursuant to Section 12.8.

    

    “Agreement Date” means the date
as of which this Agreement is dated.

    

    “Annualized Base Rents” means,
for any tenant in a Property owned by the Borrower, a Loan Party or any other
Subsidiary, an amount equal to the GAAP revenue received from such tenant during
the quarter most recently ended multiplied by
4.

    

    “Applicable Facility Fee” means
the percentage set forth in the table below correspond­ing to the Level at
which the “Applicable Margin” is determined in accordance with the definition
thereof:

    

    
      	
              Level

            	
              Facility
      Fee

            
	
              1

            	
              .25%

            
	
              2

            	
              .275%

            
	
              3

            	
              .275%

            
	
              4

            	
              .30%

            
	
              5

            	
              .30%

            

    

     

    Any
change in the applicable Level at which the Applicable Margin is determined
shall result in a corresponding and simultaneous change in the Applicable
Facility Fee.  The provisions of this definition shall be subject to
Section 2.4.(c).

    

    “Applicable Law” means all
applicable provisions of constitutions, statutes, rules, regulations and orders
of all governmental bodies and all orders and decrees of all courts, tribunals
and arbitrators.

    

    “Applicable Margin” means the
percentage rate set forth below corresponding to the range into which the
Borrower's Credit Rating then falls.  Any change in the Borrower's
Credit Rating which would cause it to move to a different range in the table
shall be effective as of the first day of the month following the date on which
such change occurs.  If the Rating Agencies assign Credit Ratings
which correspond to different Levels in the above table resulting in different
Applicable Margin determinations, the Applicable Margin will be determined based
on the Level corresponding to the highest Credit Rating assigned by at least two
Rating Agencies; provided, however, that if no two Rating Agencies have assigned
the same Credit Rating with respect to the Borrower, then the Applicable Margin
will be determined based on the Level corresponding to the middle of the three
published Credit Ratings.  The provisions of this definition shall be
subject to Section 2.4.(c).

     

    
      
        
        

      

      
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              Level

            	
              Borrower's
      Credit Rating

              (S&P/Moody's/Fitch
      or equivalent)

            	
              Applicable
      Margin for

              LIBOR
      Loans and Swingline Loans

            
	
              1

            	
              A-/A3
      or equivalent

            	
              .95%

            
	
              2

            	
              BBB+/Baa1
      or equivalent

            	
              1.00%

            
	
              3

            	
              BBB/Baa2
      or equivalent

            	
              1.10%

            
	
              4

            	
              BBB-/Baa3
      or equivalent

            	
              1.25
      %

            
	
              5

            	
              Lower
      than BBB-/Baa3 or equivalent

            	
              1.45%

            

    

    

    “Assignee” has the meaning
given that term in Section 13.6.(c).

    

    “Assignment and Assumption”
means an Assignment and Assumption Agreement among a Lender, an Assignee and the
Agent, substantially in the form of Exhibit A.

    

    “Base Rate” means the greater
of (a) the rate of interest per annum publicly announced from time to time
by Wells Fargo Bank, National Association at its principal office in San
Francisco, California as its “prime rate” (which rate of interest may not be the
lowest rate charged by Wells Fargo Bank, National Association or any of the
other Lenders on similar loans) and (b) the Federal Funds Rate plus one-half of one
percent (0.5%).  Each change in the Base Rate shall become effective
without prior notice to the Borrower or the Lenders automatically as of the
opening of business on the date of such change in the Base Rate.

    

    “Base Rate Loan” means a
Revolving Loan bearing interest at a rate based on the Base Rate.

    

    “Benefit Arrangement” means at
any time an employee benefit plan within the meaning of Section 3(3) of ERISA
which is not a Plan or a Multiemployer Plan and which is maintained or otherwise
contributed to by any member of the ERISA Group.

    

    “Bid Rate Borrowing” has the
meaning given that term in Section 2.2.(b).

    

    “Bid Rate Loan” means a loan
made by a Lender under Section 2.2.

    

    “Bid Rate Note” means a
promissory note of the Borrower substantially in the form of Exhibit K,
payable to the order of a Lender in a principal amount equal to the amount of
such Lender’s Commitment as originally in effect and otherwise duly
completed.

    

    “Bid Rate Quote” means an offer
in accordance with Section 2.2.(c) by a Lender to make a Bid Rate Loan with
one single specified interest rate.

    

    “Bid Rate Quote Request” has
the meaning given that term in Section 2.2.(b).

    

    “Bill Lead Date” has the
meaning given that term in Section 3.9.(b).

    
      
         

      

      
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    “Borrower” has the meaning set
forth in the introductory paragraph hereof and shall include the Borrower’s
successors and permitted assigns.

    

    “Borrower Information” has the
meaning given that term in Section 2.4.(c).

    

    “Borrowing Base” means the
aggregate Unencumbered Pool Values of all Unencumbered Pool Properties divided
by 1.75.

    

    “Business Day” means
(a) any day other than a Saturday, Sunday or other day on which banks in
San Francisco, California are authorized or required to close and (b) with
reference to a LIBOR Loan or a Swingline Loan, any such day that is also a day
on which dealings in Dollar deposits are carried out in the London interbank
market.

    

    “Capitalized EBITDA” means,
with respect to a Person and as of a given date, (a) such Person’s EBITDA
for the fiscal quarter most recently ended multiplied by
(b) 4 and divided
by (c) 9.0%.  In determining Capitalized EBITDA with
respect to a Property owned by a Subsidiary that is not a Wholly Owned
Subsidiary, only the Borrower’s Ownership Share of the EBITDA of such Property
shall be used when determining Capitalized EBITDA.

    

    “Capitalized Lease Obligation”
means obligations under a lease that is required to be capitalized for financial
reporting purposes in accordance with GAAP.  The amount of a
Capitalized Lease Obligation is the capitalized amount of such obligation
determined in accordance with GAAP.

    

    “Commitment” means, as to each
Lender, such Lender’s obligation to make Revolving Loans pursuant to
Section 2.1. and to participate in Swingline Loans pursuant to
Section 2.3., in an amount up to, but not exceeding the amount set forth
for such Lender on its signature page hereto as such Lender’s “Commitment
Amount” or as set forth in the applicable Assignment and Acceptance Agreement,
as the same may be reduced from time to time pursuant to Section 2.12. or
otherwise pursuant to the terms of this Agreement or as appropriate to reflect
any assignments to or by such Lender effected in accordance with
Section 13.6.

    

    “Compliance Certificate” has
the meaning given that term in Section 9.3.

    

    “Continue”, “Continuation” and “Continued” each refers to the
continuation of a LIBOR Loan from one Interest Period to another Interest Period
pursuant to Section 2.9.

    

    “Convert”, “Conversion” and “Converted” each refers to the
conversion of a Revolving Loan of one Type into a Revolving Loan of another Type
pursuant to Section 2.10.

    

    “Credit Event” means any of the
following: (a) the making (or deemed making) of any Loan, (b) the
Conversion of a Revolving Loan and (c) the Continuation of a LIBOR
Loan.

    

    “Credit Rating” means the
rating assigned by a Rating Agency to each series of rated senior unsecured long
term indebtedness of the Borrower.

    
      
         

      

      
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    “Default” means any of the
events specified in Section 11.1., whether or not there has been satisfied
any requirement for the giving of notice, the lapse of time, or
both.

    

    “Defaulting Lender” has the
meaning set forth in Section 3.10.

    

    “Derivatives Contract” means
any and all rate swap transactions, basis swaps, credit derivative transactions,
forward rate transactions, commodity swaps, commodity options, forward commodity
contracts, equity or equity index swaps or options, bond or bond price or bond
index swaps or options or forward bond or forward bond price or forward bond
index transactions, interest rate options, forward foreign exchange
transactions, cap transactions, floor transactions, collar transactions,
currency swap transactions, cross-currency rate swap transactions, currency
options, spot contracts, or any other similar transactions or any combination of
any of the foregoing (including any options to enter into any of the foregoing),
whether or not any such transaction is governed by or subject to any master
agreement.  Not in limitation of the foregoing, the term “Derivatives
Contract” includes any and all transactions of any kind, and the related
confirmations, which are subject to the terms and conditions of, or governed by,
any form of master agreement published by the International Swaps and
Derivatives Association, Inc., any International Foreign Exchange Master
Agreement, or any other master agreement, including any such obligations or
liabilities under any such master agreement.

    

    “Derivatives Termination Value”
means, in respect of any one or more Derivatives Contracts, after taking into
account the effect of any legally enforceable netting agreement relating to such
Derivatives Contracts, (a) for any date on or after the date such
Derivatives Contracts have been closed out and termination value(s) determined
in accordance therewith, such termination value(s), and (b) for any date
prior to the date referenced in clause (a) the amount(s) determined as the
mark-to-market value(s) for such Derivatives Contracts, as determined based upon
one or more mid-market or other readily available quotations provided by any
recognized dealer in such Derivatives Contracts (which may include the Agent or
any Lender).

    

    “Designated Lender” means a
special purpose corporation which is an affiliate of, or sponsored by, a Lender,
that is engaged in making, purchasing or otherwise investing in commer­cial
loans in the ordinary course of its business and that issues (or the parent of
which issues) commercial paper rated at least P-1 (or the then equivalent grade)
by Moody’s or A-1 (or the then equivalent grade) by S&P that, in either
case, (a) is organized under the laws of the United States of America or
any state thereof, (b) shall have become a party to this Agreement pursuant
to Section 13.6.(d) and (c) is not otherwise a Lender.

    

    “Designated Lender Note” means
a Bid Rate Note of the Borrower evidencing the obli­gation of the Borrower
to repay Bid Rate Loans made by a Designated Lender.

    

    “Designating Lender” has the
meaning given that term in Section 13.6.(d).

    
      
         

      

      
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    “Designation Agreement” means a
Designation Agreement between a Lender and a Designated Lender and accepted by
the Agent, substantially in the form of Exhibit L or such other form as may
be agreed to by such Lender, such Designated Lender and the Agent.

    

    “Development Property” means a
Property currently under development (i) upon which a certificate of
occupancy has not been obtained in accordance with Applicable Law and local
building and zoning ordinances and (ii) on which the improvements (other
than tenant improvements on unoccupied space) related to the development have
not been substantially completed. The term “Development Property” shall include
real property of the type described in the immediately preceding sentence to be
(but not yet) acquired by the Borrower, any Subsidiary or any Unconsolidated
Affiliate upon completion of construction pursuant to a contract in which the
seller of such real property is required to develop or renovate prior to, and as
a condition precedent to, such acquisition.

    

    “Dollars” or “$” means the lawful currency
of the United States of America.

    

    “EBITDA” means, with respect to
any Person for any period and without duplication, net earnings (loss) of such
Person for such period (excluding equity in net earnings or net loss of
Unconsolidated Affiliates) including (if deducted in determining net earnings
for such period) or excluding (if added in determining net earnings (loss) for
such period), as applicable, the following amounts (but only to the extent
included in determining net earnings (loss) for such period):
(a) depreciation and amortization expense and other non-cash charges of
such Person for such period; (b) interest expense of such Person for such
period; (c) income tax expense of such Person in respect of such period;
(d) extraordinary and nonrecurring gains and losses of such Person for such
period, including without limitation, gains and losses from the sale of assets
(it being agreed that the sales of assets by Crest Net Lease, Inc. are not
extraordinary or nonrecurring), write-offs and forgiveness of debt; and
(e) the portion of EBITDA allocable to interests in Unconsolidated
Affiliates, except to the extent that cash dividends or distributions are
actually received by such Person.  For purposes of this definition,
net earnings (loss) shall be determined before minority interests and
distributions to holders of Preferred Stock.

    

    “Effective Date” means the
later of (a) the Agreement Date and (b) the date on which all of the
conditions precedent set forth in Section 6.1. shall have been fulfilled or
waived in writing in accordance with the provisions of Section
13.7.

    

    “Eligible Assignee” means any
Person that is:  (a) an existing Lender; (b) a commercial
bank, trust company, savings and loan association, savings bank, insurance
company, investment bank or pension fund organized under the laws of the United
States of America, any state thereof or the District of Columbia, and having
total assets in excess of $5,000,000,000; or (c) a commercial bank
organized under the laws of any other country which is a member of the
Organisation for Economic Co-operation and Development, or a political
subdivision of any such country, and having total assets in excess of
$10,000,000,000, provided that such bank is acting through a branch or agency
located in the United States of America.  If such entity is not
currently a Lender, such entity’s (or in the case of a bank which is a
subsidiary, such bank’s parent’s) senior unsecured long term indebtedness must
be rated BBB or higher by S&P, Baa2 or higher by Moody’s or the equivalent
or higher of either such rating by another rating agency

    
      
         

      

      
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    acceptable
to the Agent.  Notwithstanding the foregoing, if a Default or Event of
Default exists an Eligible Assignee may also include any Person approved by the
Agent.

    

    “Eligible Property” means a
Property which satisfies all of the following requirements as reasonably
confirmed by the Agent: (a) such Property is owned in fee simple by the
Borrower or a Wholly Owned Subsidiary; (b) such Property is a completed
retail property leased to third party tenants on a net lease basis;
(c) such Property is located in a State of the United States of America or
in the District of Columbia; (d) regardless of whether such Property is
owned by the Borrower or a Subsidiary, the Borrower has the right directly, or
indirectly through a Subsidiary, to take the following actions without the need
to obtain the consent of any Person: (i) to create Liens on such Property
as security for Indebtedness of the Borrower or such Subsidiary, as applicable,
and (ii) to sell, transfer or otherwise dispose of such Property;
(e) neither such Property, nor if such Property is owned by a Subsidiary,
any of the Borrower's direct or indirect ownership interest in such Subsidiary
is subject to (i) any Lien other than Permitted Liens or (ii) any
Negative Pledge; (f) the Occupancy Rate of such Property equals or exceeds
85%; (g) such Property is not a Development Property; (h) such
Property is not subject to a ground lease; and (i) such Property is free of
all structural defects, title defects, environmental conditions or other adverse
matters except for defects, conditions or matters individually or collectively
which are not material to the profitable operation of such
Property.  Notwithstanding the foregoing, (i) the Silverton Business
Center shall be deemed to be an Eligible Property even if it does not satisfy
the requirements set forth in clauses (b) (as it relates to such Property being
leased on a net leased basis) and (f) above, so long as the Occupancy Rate for
the Silverton Business Center equals or exceeds 80% and the Silverton Business
Center satisfies all other remaining requirements of this definition and (ii)
any other Property approved by the Requisite Lenders pursuant to Section 4.1.(c)
shall be deemed to be an Eligible Property even if such Property does not
satisfy all of the requirements herein, so long as such Property continues to
satisfy all those remaining requirements in this definition that were satisfied
by such Property at the time of such Requisite Lender approval.

    

    “Environmental Laws” means any
Applicable Law relating to environmental protection or the manufacture, storage,
disposal or clean-up of Hazardous Materials including, without limitation, the
following: Clean Air Act, 42 U.S.C. § 7401 et seq.; Federal Water Pollution
Control Act, 33 U.S.C. § 1251 et seq.; Solid Waste Disposal Act, 42 U.S.C. §
6901 et seq.; Comprehensive Environmental Response, Compensation and Liability
Act, 42 U.S.C. § 9601 et seq.; National Environmental Policy Act, 42 U.S.C.
§ 4321 et seq.; regulations of the Environmental Protection Agency and any
applicable rule of common law and any judicial interpretation thereof relating
primarily to the environment or Hazardous Materials.

    

    “Equity Interest” means, with
respect to any Person, any share of capital stock of (or other ownership or
profit interests in) such Person, any warrant, option or other right for the
purchase or other acquisition from such Person of any share of capital stock of
(or other ownership or profit interests in) such Person, any security
convertible into or exchangeable for any share of capital stock of (or other
ownership or profit interests in) such Person or warrant, right or option for
the purchase or other acquisition from such Person of such shares (or such other
interests), and any other ownership or profit interest in such Person
(including, without limitation, partnership, member or trust interests therein),
whether voting or nonvoting, and

    
      
         

      

      
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    whether
or not such share, warrant, option, right or other interest is authorized or
otherwise existing on any date of determination.

    

    “Equity Issuance” means any
issuance or sale by a Person of any Equity Interest.

    

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

    

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

    

    “Event of Default” means any of
the events specified in Section 11.1., provided that any requirement for
notice or lapse of time or any other condition has been satisfied.

    

    “Existing Credit Agreement”
means that certain Credit Agreement dated as of June 17, 2005 by and among the
Borrower, the Agent and the lenders party thereto.

    

    “Extension Request” has the
meaning given that term in Section 2.13.(a).

    

    “Fair Market Value” means, with
respect to any asset, the price that could be negotiated in an arm’s-length free
market transaction, for cash, between a willing seller and a willing buyer,
neither of which is under pressure or compulsion to complete the
transaction.  Except as otherwise provided herein, Fair Market Value
shall be determined by the Board of Directors of the Borrower (or an authorized
committee thereof) acting in good faith conclusively evidenced by a board
resolution thereof delivered to the Agent or, with respect to any asset valued
at up to $1,000,000, such determination may be made by the chief financial
officer of the Borrower evidenced by an officer’s certificate delivered to the
Agent.

    

    “Federal Funds Rate” means, for
any period, a fluctuating interest rate per annum equal for each day during such
period to the weighted average of the rates on overnight Federal Funds
transactions with members of the Federal Reserve System arranged by Federal
Funds brokers, as published for such day (or, if such day is not a Business Day,
for the next preceding Business Day) by the Federal Reserve Bank of New York,
or, if such rate is not so published for any day which is a Business Day, the
average of the quotations for such day on such transactions received by the
Agent from three Federal Funds brokers of recognized standing selected by the
Agent.

    

    “Fees” means the fees and
commissions provided for or referred to in Section 3.6. and any other fees
payable by the Borrower hereunder or under any other Loan Document.

    

    “Fitch” means Fitch Rating
Group.

    

    “Fixed Charges” means, with
respect to a Person and for a given period, the sum of (a) the Interest
Expense of such Person for such period, plus (b) the
aggregate of all scheduled

    
      
         

      

      
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    principal
payments on Indebtedness made by such Person during such period (excluding
balloon, bullet or similar payments of principal due upon the stated maturity of
Indebtedness), plus (c) the
aggregate of all dividends paid or accrued by such Person on any Preferred Stock
during such period, plus (d) the
Reserve for Replacements for such Person’s Properties.

    

    “Funds From Operations” means
net income available to common stock holders (computed in accordance with GAAP),
plus depreciation and amortization, but excluding gains on the sale of
investment properties from “continuing operations” and “discontinued operations”
(as indicated on the consolidated statements of income (and accompanying notes)
of the Borrower)(it being agreed that gain or losses on sales by Crest Net
Lease, Inc. are not extraordinary or non-recurring and should be included in
Funds from Operations) and after adjustments for unconsolidated partnerships and
joint ventures. Adjustments for unconsolidated partnerships and joint ventures
will be calculated to reflect funds from operations on the same basis. Funds
From Operations shall be calculated consistent with the National Association of
Real Estate Investments Trusts, Inc. ("NAREIT") as of the Agreement Date, but
without giving effect to any supplements, amendments or other modifications
promulgated after the Agreement Date.

    

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

    

    “Governmental Approvals” means
all authorizations, consents, approvals, licenses and exemptions of,
registrations and filings with, and reports to, all Governmental
Authorities.

    

    “Governmental Authority” means
any national, state or local government (whether domestic or foreign), any
political subdivision thereof or any other governmental, quasi-governmental,
judicial, public or statutory instrumentality, authority, body, agency, bureau
or entity (including, without limitation, the Federal Deposit Insurance
Corporation, the Comptroller of the Currency or the Federal Reserve Board, any
central bank or any comparable authority) or any arbitrator with authority to
bind a party at law.

    

    “Gross Asset Value” means, at a
given time, the sum (without duplication) of (a) (i) Capitalized EBITDA of
the Borrower and its Subsidiaries on a consolidated basis at such time minus (ii)
Capitalized EBITDA for any Property acquired by the Borrower or any Subsidiary
during the immediately preceding fiscal quarter of the Borrower, the purchase
price of which Property the Borrower has elected to add to Gross Asset Value in
accordance with clause (e) below, plus (b) all
cash, cash equivalents (excluding tenant deposits and other cash and cash
equivalents the disposition of which is restricted) and marketable securities of
the Borrower and its Subsidiaries at such time, plus (c) the
current book value of all real property of the Borrower and its Subsidiaries
upon which construction is then in progress and all land held for development,
plus
(d) the Borrower’s respective Ownership Shares of the current book values
of all real property of each Unconsolidated Affiliate upon which construction is
in progress, plus

    
      
         

      

      
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    (e) the
purchase price paid by the Borrower or any Subsidiary (less any amounts paid to
the Borrower or such Subsidiary as a purchase price adjustment, held in escrow,
retained as a contingency reserve, or in connection with other similar
arrangements) for any Property (other than a Development Property) acquired by
the Borrower or such Subsidiary during the immediately preceding fiscal quarter
of the Borrower so long as the Capitalized EBITDA of such Property is subtracted
from Gross Asset Value in accordance with clause (a)(ii) above,  plus (f) the
contractual purchase price of Properties of the Borrower and its Subsidiaries
subject to purchase obligations, repurchase obligations, forward commitments and
unfunded obligations to the extent such obligations and commitments are included
in determinations of Total Liabilities.  No more than 5% of the Gross
Asset Value may be attributable to the current book value of land held for
development.

    

    “Guarantor” means any Person
that is party to the Guaranty as a “Guarantor” and shall in any event include
Realty Income Texas Properties, L.P., Realty Income Texas Properties, Inc. and
each Wholly Owned Subsidiary of the Borrower other than (i) Crest Net
Lease, Inc. and (ii) no more than two Taxable REIT Subsidiaries, other than
Crest Net Lease, Inc.

    

    “Guaranty”, “Guaranteed” or to “Guarantee” as applied to any
obligation means and includes:  (a) a guaranty (other than by
endorsement of negotiable instruments for collection in the ordinary course of
business), directly or indirectly, in any manner, of any part or all of such
obligation, or (b) an agreement, direct or indirect, contingent or
otherwise, and whether or not constituting a guaranty, the practical effect of
which is to assure the payment or performance (or payment of damages in the
event of nonperformance) of any part or all of such obligation whether by:
(i) the purchase of securities or obligations, (ii) the purchase, sale
or lease (as lessee or lessor) of property or the purchase or sale of services
primarily for the purpose of enabling the obligor with respect to such
obligation to make any payment or performance (or payment of damages in the
event of nonperformance) of or on account of any part or all of such obligation,
or to assure the owner of such obligation against loss, (iii) the supplying
of funds to or in any other manner investing in the obligor with respect to such
obligation, (iv) repayment of amounts drawn down by beneficiaries of
letters of credit, or (v) the supplying of funds to or investing in a
Person on account of all or any part of such Person’s obligation under a
Guaranty of any obligation or indemnifying or holding harmless, in any way, such
Person against any part or all of such obligation.  As the context
requires, “Guaranty” shall also mean the guaranty executed and delivered
pursuant to Section 6.1. and substantially in the form of
Exhibit O.

    

    “Hazardous Materials” means all
or any of the following: (a) substances that are defined or listed in, or
otherwise classified pursuant to, any applicable Environmental Laws as
“hazardous substances”, “hazardous materials”, “hazardous wastes”, “toxic
substances” or any other formulation intended to define, list or classify
substances by reason of deleterious properties such as ignitability,
corrosivity, reactivity, carcinogenicity, reproductive toxicity, “TCLP”
toxicity, or “EP toxicity”; (b) oil, petroleum or petroleum derived
substances, natural gas, natural gas liquids or synthetic gas and drilling
fluids, produced waters and other wastes associated with the exploration,
development or production of crude oil, natural gas or geothermal resources;
(c) any flammable substances or explosives or any radioactive materials;
(d) asbestos in any form; and (e) electrical equipment which contains
any oil or dielectric fluid containing levels of polychlorinated biphenyls in
excess of fifty parts per million.

    
      
         

      

      
        - 10
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    “Indebtedness” means, with
respect to a Person, at the time of computation thereof, all of the following
(without duplication): (a) all obligations of such Person in respect of
money borrowed; (b) all obligations of such Person (other than trade debt
incurred in the ordinary course of business), whether or not for money borrowed
(i) represented by notes payable, or drafts accepted, in each case
representing extensions of credit, (ii) evidenced by bonds, debentures,
notes or similar instruments, or (iii) constituting purchase money
indebtedness, conditional sales contracts, title retention debt instruments or
other similar instruments, upon which interest charges are customarily paid or
that are issued or assumed as full or partial payment for property;
(c) Capitalized Lease Obligations of such Person; (d) all
reimbursement obligations of such Person under or in respect of any letters of
credit or acceptances (whether or not the same have been presented for payment);
(e) all Off Balance Sheet Liabilities of such Person; (f) net
obligations under any Derivative Contract in an amount equal to the Derivatives
Termination Value thereof; and (g) all Indebtedness of other Persons which
(i) such Person has Guaranteed or is otherwise recourse to such Person or
(ii) is secured by a Lien on any property of such Person.

    

    “Industrial Classification
Schedule” means Schedule 1.1.(B), which, subject to the prior written
consent of the Agent, which consent shall not be ureasonably withheld or
delayed, may be updated by the Borrower from time to time to modify the
industrial classifications and/or add additional industrial
classifications.

    

    “Intellectual Property” has the
meaning given that term in Section 7.1.(s).

    

    “Interest Expense” means, with
respect to a Person and for any period, (a) all paid, accrued or
capitalized interest expense (including, without limitation, capitalized
interest expense (other than capitalized interest funded from a construction
loan interest reserve account held by another lender and not included in the
calculation of cash for balance sheet reporting purposes) and interest expense
attributable to Capitalized Lease Obligations) of such Person and in any event
shall include all letter of credit fees and all interest expense with respect to
any Indebtedness in respect of which such Person is wholly or partially liable
whether pursuant to any repayment, interest carry, performance Guarantee or
otherwise, plus
(b) to the extent not already included in the foregoing
clause (a) such Person’s Ownership Share of all paid, accrued or
capitalized interest expense for such period of Unconsolidated Affiliates of
such Person.

    

    “Interest Period”
means,

    

    (a)           with
respect to any LIBOR Loan, each period commencing on the date such LIBOR Loan is
made or the last day of the next preceding Interest Period for such Loan and
ending on the numerically corresponding day in the first, second, third or sixth
calendar month thereafter, as the Borrower may select in a Notice of Borrowing,
Notice of Continuation or Notice of Conversion, as the case may be, except that
each Interest Period that commences on the last Business Day of a calendar month
(or on any day for which there is no numerically corresponding day in the
appropriate subsequent calendar month) shall end on the last Business Day of the
appropriate subsequent calendar month.  In addition to such periods,
the Borrower

    
      
         

      

      
        - 11
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    may
request Interest Periods having durations of up to 10 Business Days for LIBOR
Loans which are Swingline Loans;

    

    (b)           with
respect to any Swingline Loan, each period commencing on the date such Swingline
Loan is made and ending on the date up to 10 Business Days
thereafter, as the Borrower may select in a Notice of  Swingline
Borrowing; and

    

    (c)           with
respect to any Absolute Rate Loan or Libor Margin Loan, the period commencing on
the date such Loan is made and ending on the numerically corresponding day in
the first, second, or third calendar month thereafter, as the Borrower may
select as provided in Section 2.2.(b), except that each Interest Period
that commences on the last Business Day of a calendar month (or on any day for
which there is no numerically corre­sponding day in the appropriate
subsequent calendar month) shall end on the last Business Day of the appropriate
subsequent calendar month.

    

    Notwithstanding
the foregoing: (a) if any Interest Period would otherwise end after the
Termination Date or Swingline Termination Date, as applicable, such Interest
Period shall end on the Termination Date or Swingline Termination Date, as
applicable; (b) each Interest Period that would otherwise end on a day
which is not a Business Day shall end on the next succeeding Business Day (or,
if such next succeeding Business Day falls in the next succeeding calendar
month, on the next preceding Business Day); and (c) notwithstanding the
immediately preceding clauses (a) and (b), other than with respect to Swingline
Loans, no Interest Period shall have a duration of less than one month and, if
the Interest Period for any Loan would otherwise be a shorter period, such Loan
shall not be available hereunder for such period.

    

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

    

    “Investment” means, with
respect to any Person, any acquisition or investment (whether or not of a
controlling interest) by such Person, whether by means of (a) the purchase
or other acquisition of any Equity Interest in another Person, (b) a loan,
advance or extension of credit to, capital contribution to, Guaranty of
Indebtedness of, or purchase or other acquisition of any Indebtedness of,
another Person, including any partnership or joint venture interest in such
other Person, or (c) the purchase or other acquisition (in one transaction
or a series of transactions) of assets of another Person that constitute the
business or a division or operating unit of another Person.  Any
commitment or option to make an Investment in any other Person shall constitute
an Investment.  Except as expressly provided otherwise, for purposes
of determining compliance with any covenant contained in a Loan Document, the
amount of any Investment shall be the amount actually invested, without
adjustment for subsequent increases or decreases in the value of such
Investment.

    

    “Investment Grade Rating” means
a Credit Rating of BBB- or higher by S&P or Fitch, Baa3 or higher by
Moody’s, or the equivalent or higher of either such rating by another Rating
Agency.

    

    “Lender” means each financial
institution from time to time party hereto as a “Lender” or a “Designated
Lender,” together with its respective successors and permitted assigns, and,
as

    
      
         

      

      
        - 12
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    the
context requires, includes the Swingline Lender; provided, however, that the
term “Lender” shall exclude each Designated Lender when used in reference to any
Loan other than a Bid Rate Loan, the Commitments or terms relating to any Loan
other than a Bid Rate Loan and the Commitments and shall further exclude each
Designated Lender for all other pur­poses hereunder except that any
Designated Lender which funds a Bid Rate Loan shall, subject to
Section 13.6.(d), have the rights (including the rights given to a Lender
contained in Sections 13.2. and 13.10.) and obligations of a Lender
associated with holding such Bid Rate Loan.

    

    “Lending Office” means, for
each Lender and for each Type of Loan, the office of such Lender specified as
such on its signature page hereto or in the applicable Assignment and
Assumption, or such other office of such Lender as such Lender may notify the
Agent in writing from time to time.

    

    “Level” has the meaning given
that term in the definition of the term “Applicable Margin”.

    

    “LIBOR” means, for the Interest Period for any LIBOR Loan or
any LIBOR Margin Loan, the rate of interest obtained by dividing (i) the rate of
interest quoted by the Person then serving as the Agent from time to time as the
London Inter-Bank Offered Rate for deposits in U.S. Dollars at approximately
9:00 a.m. Pacific time, two (2) Business Days prior to the date of commencement
of such Interest Period for purposes of calculating effective rates of interest
for loans or obligations making reference thereto for an amount approximately
equal to the applicable LIBOR Loan or LIBOR Margin Loan, as the case may be, and
for a period of time approximately equal to such Interest Period by
(ii)  a percentage equal to 1 minus the stated maximum rate (stated as
a decimal) of all reserves, if any, required to be maintained with respect to
Eurocurrency funding (currently referred to as “Eurocurrency liabilities”) as
specified in Regulation D of the Board of Governors of the Federal Reserve
System (or against any other category of liabilities which includes deposits by
reference to which the interest rate on LIBOR loans is determined or any
applicable category of extensions of credit or other assets which includes loans
by an office of any Lender outside of the United States of
America).  Any change in such maximum rate shall result in a change in
LIBOR on the date on which such change in such maximum rate becomes
effective.

    

    “LIBOR Auction” means a
solicitation of Bid Rate Quotes setting forth LIBOR Margin Loans based on LIBOR
pursuant to Section 2.2.

    

    “LIBOR Loan” means a Revolving
Loan bearing interest at a rate based on LIBOR.

    

    “LIBOR Margin Loan” means a Bid
Rate Loan the interest rate on which is determined on the basis of LIBOR
pursuant to a LIBOR Auction.

    

    “Lien” as applied to the
property of any Person means:  (a) any security interest,
encumbrance, mortgage, deed to secure debt, deed of trust, pledge, lien, charge
or lease constituting a Capitalized Lease Obligation, conditional sale or other
title retention agreement, or other security title or encumbrance of any kind in
respect of any property of such Person, or upon

    
      
         

      

      
        - 13
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    the
income or profits therefrom; (b) any arrangement, express or implied, under
which any property of such Person is transferred, sequestered or otherwise
identified for the purpose of subjecting the same to the payment of Indebtedness
or performance of any other obligation in priority to the payment of the
general, unsecured creditors of such Person; (c) the filing of any
financing statement under the UCC or its equivalent in any jurisdiction; and
(d) any agreement by such Person to grant, give or otherwise convey any of
the foregoing.

    

    “Loan” means a Revolving Loan,
a Bid Rate Loan or a Swingline Loan.

    

    “Loan Document” means this
Agreement, each Note, and each other document or instrument now or hereafter
executed and delivered by a Loan Party in connection with, pursuant to or
relating to this Agreement.

    

    “Loan Party” means each of the
Borrower, each other Person who guarantees all or a portion of the Obligations
and/or who pledges any collateral to secure all or a portion of the
Obligations.  Schedule 1.1.(A) sets forth the Loan Parties in
addition to the Borrower as of the Agreement Date.

    

    “Material Adverse Effect” means
a materially adverse effect on (a) the business, assets, liabilities,
financial condition, results of operations or business prospects of the Borrower
and its Subsidiaries taken as a whole, (b) the ability of the Borrower or
any other Loan Party to perform its obligations under any Loan Document to which
it is a party, (c) the validity or enforceability of any of the Loan
Documents, (d) the rights and remedies of the Lenders and the Agent under
any of the Loan Documents or (e) the timely payment of the principal of or
interest on the Loans or other amounts payable in connection
therewith.

    

    “Material Contract” means any
contract or other arrangement (other than Loan Documents), whether written or
oral, to which the Borrower, any Subsidiary or any other Loan Party is a party
as to which the breach, nonperformance, cancellation or failure to renew by any
party thereto could reasonably be expected to have a Material Adverse
Effect.

    

    “Material Plan” means at any
time a Plan or Plans having aggregate Unfunded Liabilities in excess of
$5,000,000.

    

    “Maximum Loan Availability”
means, at any time, the lesser of (i) an amount equal to the positive
difference, if any, of (x) the Borrowing Base minus (y) all
Unsecured Liabilities (other than the Loans), of the Borrower and its
Subsidiaries on a consolidated basis and (ii) the aggregate amount of the
Commitments at such time.

    

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

    

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

    
      
         

      

      
        - 14
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    “Multiemployer Plan” means at
any time an employee pension benefit plan within the meaning of Section
4001(a)(3) of ERISA to which any member of the ERISA Group is then making or
accruing an obligation to make contributions or has within the preceding five
plan years made contributions, including for these purposes any Person which
ceased to be a member of the ERISA Group during such five year
period.

    

    “Negative Pledge” means, with
respect to a given asset, any provision of a document, instrument or agreement
(other than any Loan Document) which prohibits or purports to prohibit the
creation of any Lien on such asset as security for Indebtedness of the Person
owning such asset or any other Person.

    

    “Net Operating Income” means,
for any Property and for a given period, the sum (without duplication) of
(a) rents and other revenues received in the ordinary course from such
Property (excluding pre-paid rents and revenues and security deposits except to
the extent applied in satisfaction of tenants' obligations for rent) minus (b) all
expenses paid or accrued by the Borrower and its Subsidiaries and related to the
ownership, operation or maintenance of such Property (other than those expenses
normally covered by a management fee), including but not limited to, taxes,
assessments and the like, insurance, utilities, payroll costs, maintenance,
repair and landscaping expenses, marketing expenses, and general and
administrative expenses (including an appropriate allocation for legal,
accounting, advertising, marketing and other expenses incurred in connection
with such Property, but specifically excluding general overhead expenses of the
Borrower and its Subsidiaries) minus (c) the
Reserve for Replacements for such Property for such period minus (d) the
greater of (i) the actual property management fee paid during such period
with respect to such Property and (ii) an imputed management fee in an
amount equal to 2% of the gross revenues for such Property for such period, all
as determined in accordance with GAAP.

    

    “Net Proceeds” means with
respect to an Equity Issuance by a Person, the aggregate amount of all cash or
the Fair Market Value of all other property received by such Person in respect
of such Equity Issuance net of investment banking fees, legal fees, accountants
fees, underwriting discounts and commissions and other customary fees and
expenses actually incurred by such Person in connection with such Equity
Issuance.

    

    “Nonrecourse Indebtedness”
means, with respect to a Person, Indebtedness for borrowed money in respect of
which recourse for payment (except for customary exceptions for fraud,
misapplication of funds, environmental indemnities, and other similar customary
exceptions to recourse liability in a form reasonably acceptable to the Agent)
is contractually limited to specific assets of such Person encumbered by a Lien
securing such Indebtedness.

    

    “Note” means a Revolving Note,
a Bid Rate Note or a Swingline Note.

    

    “Notice of Borrowing” means a
notice substantially in the form of Exhibit B to be delivered to the Agent
pursuant to Section 2.1.(b) evidencing the Borrower’s request for a
borrowing of Revolving Loans.

    
      
         

      

      
        - 15
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    “Notice of Continuation” means
a notice substantially in the form of Exhibit C to be delivered to the
Agent pursuant to Section 2.9. evidencing the Borrower’s request for the
Continuation of a LIBOR Loan.

    

    “Notice of Conversion” means a
notice substantially in the form of Exhibit D to be delivered to the Agent
pursuant to Section 2.10. evidencing the Borrower’s request for the
Conversion of a Loan from one Type to another Type.

    

    “Notice of Swingline Borrowing”
means a notice substantially in the form of Exhibit F be delivered to the
Swingline Lender pursuant to Section 2.3.(b) evidencing the Borrower’s
request for a Swingline Loan.

    

    “Obligations” means,
individually and collectively: (a) the aggregate principal balance of, and
all accrued and unpaid interest on, all Loans and (b) all other
indebtedness, liabilities, obligations, covenants and duties of the Borrower or
any of the other Loan Parties owing to the Agent or any Lender of every kind,
nature and description, under or in respect of this Agreement or any of the
other Loan Documents, including, without limitation, the Fees and
indemnification obligations, whether direct or indirect, absolute or contingent,
due or not due, contractual or tortious, liquidated or unliquidated, and whether
or not evidenced by any promissory note.

    

    “Occupancy Rate” means, with
respect to a Property at any time, the ratio, expressed as a percentage, of
(a) the net rentable square footage of such Property which is actually
occupied and upon which rent is paid pursuant to binding leases as to which no
default exists to (b) the aggregate net rentable square footage of such
Property.

    

    “Off Balance Sheet Liabilities”
means, with respect to any Person, (a) any repurchase obligation or
liability, contingent or otherwise, of such Person with respect to any accounts
or notes receivable sold, transferred or otherwise disposed of by such Person,
(b) any repurchase obligation or liability, contingent or otherwise, of
such Person with respect to property or assets leased by such Person as lessee
and (c) all obligations, contingent or otherwise, of such Person under any
synthetic lease, tax retention operating lease, off balance sheet loan or
similar off balance sheet financing if the transaction giving rise to such
obligation (i) is considered indebtedness for borrowed money for tax
purposes but is classified as an operating lease or (ii) does not (and is
not required pursuant to GAAP to) appear as a liability on the balance sheet of
such Person.

    

    “Ownership Share” means, with
respect to any Subsidiary of a Person (other than a Wholly Owned Subsidiary) or
any Unconsolidated Affiliate of a Person, the greater of (a) such Person’s
relative nominal direct and indirect ownership interest (expressed as a
percentage) in such Subsidiary or Unconsolidated Affiliate or (b) subject
to compliance with Section 9.4.(q), such Person’s relative direct and
indirect economic interest (calculated as a percentage) in such Subsidiary or
Unconsolidated Affiliate determined in accordance with the applicable provisions
of the declaration of trust, articles or certificate of incorporation, articles
of organization, partnership agreement, joint venture agreement or other
applicable organizational document of such Subsidiary or Unconsolidated
Affiliate.

    
      
         

      

      
        - 16
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    “Participant” has the meaning
given that term in Section 13.6.(b).

    

    “PBGC” means the Pension
Benefit Guaranty Corporation and any successor agency.

    

    “Permitted Liens” means, with
respect to any Unencumbered Pool Property owned by a Person, (a) Liens
securing taxes, assessments and other charges or levies imposed by any
Governmental Authority (excluding any Lien imposed pursuant to any of the
provisions of ERISA or pursuant to any Environmental Laws) or the claims of
materialmen, mechanics, carriers, warehousemen or landlords for labor,
materials, supplies or rentals incurred in the ordinary course of business,
which are not at the time required to be paid or discharged under
Section 8.6.; (b) Liens consisting of deposits or pledges made, in the
ordinary course of business, in connection with, or to secure payment of,
obligations under workmen’s compensation, unemployment insurance or similar
Applicable Laws; (c) Liens consisting of encumbrances in the nature of
zoning restrictions, easements, and rights or restrictions of record on the use
of real property, which do not materially detract from the value of such
property or impair the use thereof in the business of such Person; (d) the
rights of tenants under leases or subleases not interfering with the ordinary
conduct of business of such Person; (e) Liens in favor of the Agent for the
benefit of the Lenders; (f) any option, contract or other agreement to sell
an asset provided such sale is otherwise permitted by this Agreement; and
(g) any attachment or judgment Lien arising from a judgment or order
against such Person by any court or other tribunal so long as (i) such
judgment or order is paid, stayed or dismissed through appropriate appellate
proceedings prior to the earlier of (A) 60 days from the date of entry or
(B) the date on which the Borrower is required to deliver the next
Unencumbered Pool Certificate pursuant hereto and (ii) the amount thereof
is equal to or less than $250,000.

    

    “Person” means an individual,
corporation, partnership, limited liability company, association, trust or
unincorporated organization, or a government or any agency or political
subdivision thereof.

    

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

    

    “Post-Default Rate” means, in
respect of any principal of any Loan or any other Obligation that is not paid
when due (whether at stated maturity, by acceleration, by optional or mandatory
prepayment or otherwise), a rate per annum equal to two percent (2.0%) plus the
Base Rate as in effect from time to time.

    

    “Preferred Stock” means, with
respect to any Person, shares of capital stock of, or other equity interests in,
such Person that are entitled to preference or priority over any other capital
stock of, or other equity interest in, such Person in respect of the payment of
dividends or distribution of assets upon liquidation or both.

    
      
         

      

      
        - 17
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    “Principal Office” means 120 E.
Park Place, Suite 100, El Segundo, California 90245.

    

    “Pro Rata Share” means, as to
each Lender, the ratio, expressed as a percentage, of (a) the amount of
such Lender’s Commitment to (b) the aggregate amount of the Commitments of
all Lenders hereunder; provided, however, that if at the time of determination
the Commitments have terminated or been reduced to zero, the “Pro Rata Share” of
each Lender shall be the Pro Rata Share of such Lender in effect immediately
prior to such termination or reduction.

    

    “Property” means, with respect
to any Person, any parcel of real property, together with any building,
facility, structure, equipment or other asset located on such parcel of real
property, in each case owned by such Person.

    

    “Property Management
Agreements” means, collectively, all agreements entered into by the
Borrower or any other Loan Party pursuant to which the Borrower or such other
Loan Party engages a Person to advise it with respect to the management of a
given Property.

    

    “Rating Agency” means S&P,
Moody’s or Fitch.

    

    “Recurring Capital
Expenditures” means capital expenditures made in respect of a Property
for maintenance of such Property and replacement of items due to ordinary wear
and tear including, but not limited to, expenditures made for maintenance or
replacement of carpeting, roofing materials, mechanical systems, electrical
systems and other structural systems and expenditures relating to tenant
improvements and leasing commissions.  “Recurring Capital
Expenditures” shall not include any of the following: (a) improvements to
the appearance of such Property or any other major upgrade or renovation of such
Property not necessary for proper maintenance or marketability of such Property;
(b) capital expenditures for seismic upgrades; or (c) capital
expenditures for deferred maintenance for such Property existing at the time
such Property was acquired by the Borrower or a Subsidiary.

    

    “Regulatory Change” means, with
respect to any Lender, any change effective after the Agreement Date in
Applicable Law (including without limitation, Regulation D of the Board of
Governors of the Federal Reserve System) or the adoption or making after such
date of any interpretation, directive or request applying to a class of banks,
including such Lender, of or under any Applicable Law (whether or not having the
force of law and whether or not failure to comply therewith would be unlawful)
by any Governmental Authority or monetary authority charged with the
interpretation or administration thereof or compliance by any Lender with any
request or directive regarding capital adequacy.

    

    “REIT” means a Person
qualifying for treatment as a “real estate investment trust” under the Internal
Revenue Code.

    

    “Requisite Lenders” means, as
of any date, Lenders having at least 66 2/3% of the aggregate amount of the
Commitments, or, if the Commitments have been terminated or
reduced

    
      
         

      

      
        - 18
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    to
zero, Lenders holding at least 66 2/3% of the principal amount of the Loans
provided, however, that the Requisite Lenders must include at least two
Lenders.

    

    “Reserve for Replacements”
means, for any period and with respect to any Property, an amount equal to the
greater of (a)(i) the aggregate square footage of all completed space of
such Property times (ii) $.10
times
(iii) the number of days in such period divided by
(iv) 365 and (b)(i) the amount of Recurring Capital Expenditures
actually made in respect of such Property during such period times (ii) the
number of days in such period divided by
(iii) 365.  If the term Reserve for Replacements is used without
reference to any specific Property, then it shall be determined on an aggregate
basis with respect to all Properties and the applicable Ownership Shares of all
real property of all Unconsolidated Affiliates.

    

    “Restricted Payment” means:
(a) any dividend or other distribution, direct or indirect, on account of
any shares of any class of stock or other equity interest of the Borrower or any
of its Subsidiaries now or hereafter outstanding, except a dividend payable
solely in shares of that class of stock to the holders of that class;
(b) any redemption, conversion, exchange, retirement, sinking fund or
similar payment, purchase or other acquisition for value, direct or indirect, of
any shares of any class of stock or other equity interest of the Borrower or any
of its Subsidiaries now or hereafter outstanding; and (c) any payment made
to retire, or to obtain the surrender of, any outstanding warrants, options or
other rights to acquire shares of any class of stock of the Borrower or any of
its Subsidiaries now or hereafter outstanding.

    

    “Revolving Loan” means a loan
made by a Lender to the Borrower pursuant to Section 2.1.(a).

    

    “Revolving Note” means a
promissory note of the Borrower substantially in the form of Exhibit E,
payable to the order of a Lender in a principal amount equal to the amount of
such Lender’s Commitment as originally in effect and otherwise duly
completed.

    

    “Secured Indebtedness” means,
with respect to any Person, any Indebtedness of such Person that is secured in
any manner by any Lien on any real property and shall include such Person’s
Ownership Share of the Secured Indebtedness of any of such Person’s
Unconsolidated Affiliates.  Secured Indebtedness shall not include
Indebtedness secured by partnership interests.

    

    “Securities Act” means the
Securities Act of 1933, as amended from time to time, together with all rules
and regulations issued thereunder.

    

    “Silverton Business Center”
means that certain 467,000 square foot multi-tenant industrial property located
near Silverton Avenue, San Diego, California.

    

    “Solvent” means, when used with
respect to any Person, that (a) the fair value and the fair salable value
of its assets (excluding any Indebtedness due from any affiliate of such Person)
are in excess of the fair valuation of its total liabilities (including all
contingent liabilities); (b) such Person is able to pay its debts or other
obligations in the ordinary course as they mature; and (c) such Person has
capital not unreasonably small to carry on its business and all business in
which it proposes to be engaged.

    
      
         

      

      
        - 19
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    “S&P” means Standard &
Poor’s Rating Services, a division of The McGraw-Hill Companies,
Inc.

    

    “Subsidiary” means, for any
Person, any corporation, partnership, limited liability company or other entity
of which at least a majority of the securities or other ownership interests
having by the terms thereof ordinary voting power to elect a majority of the
board of directors or other persons performing similar functions of such
corporation, partnership or other entity (without regard to the occurrence of
any contingency) is at the time directly or indirectly owned or controlled by
such Person or one or more Subsidiaries of such Person or by such Person and one
or more Subsidiaries of such Person.

    

    “Substantial Amount” means, at
the time of determination thereof, an amount in excess of 10% of Gross Asset
Value at such time.

    

    “Swingline Commitment” means
the Swingline Lender’s obligation to make Swingline Loans pursuant to Section
2.3. in an amount
up to, but not exceeding the amount set forth in Section 2.3.(a), as such amount
may be reduced from time to time in accordance with the terms
hereof.

    

    “Swingline Lender” means Wells
Fargo Bank, National Association, together with its respective successors and
assigns.

    

    “Swingline LIBOR” means, for the Interest Period for any Swingline Loan,
the rate of interest obtained by dividing (i) the rate of interest quoted by the
Person then serving as the Agent from time to time as the London Inter-Bank
Offered Rate for deposits in U.S. Dollars at approximately 9:00 a.m. Pacific
time on the date of commencement of such Interest Period for purposes of
calculating effective rates of interest for loans or obligations making
reference thereto for an amount approximately equal to the applicable Swingline
Loan and for a one month period by (ii)  a percentage equal to 1 minus
the stated maximum rate (stated as a decimal) of all reserves, if any, required
to be maintained with respect to Eurocurrency funding (currently referred to as
“Eurocurrency liabilities”) as specified in Regulation D of the Board of
Governors of the Federal Reserve System (or against any other category of
liabilities which includes deposits by reference to which the interest rate on
LIBOR loans is determined or any applicable category of extensions of credit or
other assets which includes loans by an office of any Lender outside of the
United States of America).  Any change in such maximum rate shall
result in a change in Swingline LIBOR on the date on which such change in such
maximum rate becomes effective.

    

    “Swingline Loan” means a loan
made by the Swingline Lender to the Borrower pursuant to
Section 2.3.

    

    “Swingline Note” means a
promissory note of the Borrower substantially in the form of Exhibit G,
payable to the order of the Swingline Lender in a principal amount equal to the
amount of the Swingline Commitment as originally in effect and otherwise duly
completed.

    
      
         

      

      
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    “Swingline Termination Date”
means the date which is 10 Business Days prior to the Termination
Date.

    

    “Tangible Net Worth” means, for
any Person and as of a given date, such Person’s total consolidated
stockholders’ equity plus, in the case of
the Borrower, increases in accumulated depreciation and amortization accrued
after the March 31, 2008, minus (to the extent
contained in determining stockholders’ equity of such Person): (a) the
amount of any write-up in the book value of any assets reflected in any balance
sheet resulting from revaluation thereof or any write-up in excess of the cost
of such assets acquired, and (b) the aggregate of all amounts appearing on
the assets side of any such balance sheet for franchises, licenses, permits,
patents, patent applications, copyrights, trademarks, service marks, trade
names, goodwill, treasury stock, experimental or organizational expenses and
other like assets which would be classified as intangible assets under GAAP, all
determined on a consolidated basis.

    

    “Taxable REIT Subsidiary” means
any corporation (other than a REIT) in which the Borrower directly or indirectly
owns stock and the Borrower and such corporation jointly elect on IRS Form 8875
(or with respect to which IRS Form 8875 is otherwise filed with the Internal
Revenue Service) to have the corporation treated as a taxable REIT subsidiary of
Borrower under Section 856(l) of the Internal Revenue Code.

    

    “Taxes” has the meaning given
that term in Section 3.11.

    

    “Termination Date” means May
13, 2011, or such later date to which such date may be extended in accordance
with Section 2.13.

    

    “Total Annualized Base Rents”
means the aggregate Annualized Base Rents of all tenants of all Properties owned
by the Borrower, a Loan Party and all other Subsidiaries.

    

    “Total Budgeted Cost” means,
with respect to a Development Property, and at any time, the aggregate amount of
all costs budgeted to be paid, incurred or otherwise expended or accrued by the
Borrower, a Subsidiary or an Unconsolidated Affiliate with respect to such
Property to achieve an Occupancy Rate of 100% (excluding tenant improvements),
including without limitation, all amounts budgeted with respect to all of the
following:  (a) acquisition of land and any related improvements;
(b) a reasonable and appropriate reserve for construction interest;
(c) a reasonable and appropriate operating deficit reserve;
(d) leasing commissions and (e) other hard and soft costs associated
with the development or redevelopment of such Property.

    

    “Total Liabilities” means, as
to any Person as of a given date, all liabilities which would, in conformity
with GAAP, be properly classified as a liability on a consolidated balance sheet
of such Person as of such date, and in any event shall include (without
duplication): (a) all Indebtedness of such Person (whether or not
Nonrecourse Indebtedness and whether or not secured by a Lien), including
without limitation, Capitalized Lease Obligations and reimbursement obligations
with respect to any letter of credit; (b) all accounts payable and accrued
expenses of such Person; (c) all purchase and repurchase obligations and
forward commitments of such Person to the extent such obligations or commitments
are evidenced by a binding purchase agreement (forward commitments shall include
without limitation (i) forward

    
      
         

      

      
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    equity
commitments and (ii) commitments to purchase any real property under
development, redevelopment or renovation); (d) all unfunded obligations of
such Person; (e) all lease obligations of such Person (including ground
leases) to the extent required under GAAP to be classified as a liability on a
balance sheet of such Person; (f) all contingent obligations of such Person
including, without limitation, all Guarantees of Indebtedness by such Person;
(g) all liabilities of any Unconsolidated Affiliate of such Person, which
liabilities such Person has Guaranteed or is otherwise obligated on a recourse
basis; and (h) such Person’s Ownership Share of the Indebtedness of any
Unconsolidated Affiliate of such Person, including Nonrecourse Indebtedness of
such Person.  For purposes of clauses (c) and (d) of this definition,
the amount of Total Liabilities of a Person at any given time in respect of
(x) a contract to purchase or otherwise acquire unimproved or fully
developed real property shall be equal to (i) the total purchase price
payable by such Person under such contract if, at such time, the seller of such
real property would be entitled to specifically enforce such contract against
such Person, otherwise, (ii) the aggregate amount of due diligence
deposits, earnest money payments and other similar payments made by such Person
under such contract which, at such time, would be subject to forfeiture upon
termination of the contract and (y) a contract relating to the acquisition
of real property which the seller is required to develop or renovate prior to,
and as a condition precedent to, such acquisition, shall equal the maximum
amount reasonably estimated to be payable by such Person under such contract
assuming performance by the seller of its obligations under such contract, which
amount shall include, without limitation, any amounts payable after consummation
of such acquisition which may be based on certain performance levels or other
related criteria.  For purposes of this definition, if the assets of a
Subsidiary of a Person consist solely of Equity Interests in one Unconsolidated
Affiliate of such Person and such Person is not otherwise obligated in respect
of the Indebtedness of such Unconsolidated Affiliate, then only such Person’s
Ownership Share of the Indebtedness of such Unconsolidated Affiliate shall be
included as Total Liabilities of such Person.

    

    “Transfer Authorizer Designation
Form” means a form substantially in the form of Exhibit S to be
delivered to the Agent pursuant to Section 6.1.(xii), as the same may be
amended, restated or modified from time to time with the prior written approval
of the Agent.

    

    “Type” with respect to any
Revolving Loan, refers to whether such Loan is a LIBOR Loan or a Base Rate Loan,
or in the case of a Bid Rate Loan only, an Absolute Rate Loan or a LIBOR Margin
Loan.

    

    “UCC” means the Uniform
Commercial Code as in effect in any applicable jurisdiction.

    

    “Unconsolidated Affiliate”
means, with respect to any Person, any other Person in whom such Person holds an
Investment, which Investment is accounted for in the financial statements of
such Person on an equity basis of accounting and whose financial results would
not be consolidated under GAAP with the financial results of such Person on the
consolidated financial statements of such Person.

    

    “Unencumbered Pool Certificate”
means a report, certified by the chief financial officer of the Borrower in the
manner provided for in Exhibit Q setting forth the calculations required
to

    
      
         

      

      
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    establish
the Borrowing Base as of a specified date, all in form and detail satisfactory
to the Agent.

    

    “Unencumbered Pool Properties”
means those Eligible Properties that, pursuant to the terms of this Agreement,
are to be included when calculating the Maximum Loan Availability.
Notwithstanding anything set forth in this definition to the contrary, if the
Annualized Base Rents attributable to any Eligible Property would (a) cause
more than 30% of the Annualized Base Rents of all tenants of the Unencumbered
Pool Properties in the Borrowing Base to be attributable to tenants conducting
business in any single “industry” (as determined by reference to the industrial
classification set forth on the Industrial Classification Schedule applicable to
each such tenant) or (b) cause more than 15% of the Annualized Base Rents
of all tenants of the Unencumbered Pool Properties in the Borrowing Base to be
attributable to any single tenant (together with its Affiliates) of such
Unencumbered Pool Properties, then, such Eligible Property shall not be included
as an Unencumbered Pool Property when calculating the Borrowing Base or the
Maximum Loan Availability.

    

    “Unencumbered Pool Value” means, at any time, the
following amount as determined for an Unencumbered Pool Property: (a) the
Net Operating Income of such Unencumbered Pool Property for the fiscal quarter
most recently ended times (b) 4 and
divided by
(c) 9.0%.   If an Unencumbered Pool Property was acquired by
the Borrower or a Subsidiary during the immediately preceding fiscal quarter,
then such Unencumbered Pool Property shall have an Unencumbered Pool Value equal
to the purchase price paid by the Borrower or any Subsidiary (less any amounts
paid to the Borrower or such Subsidiary as a purchase price adjustment, held in
escrow, retained as a contingency reserve, or in connection with other similar
arrangements).  Notwithstanding the foregoing, the Unencumbered Pool
Value of the Silverton Business Center shall not exceed
$60,000,000.

    

    “Unfunded Liabilities” means,
with respect to any Plan at any time, the amount (if any) by which (a) the
value of all benefit liabilities under such Plan, determined on a plan
termination basis using the assumptions prescribed by the PBGC for purposes of
Section 4044 of ERISA, exceeds (b) the fair market value of all Plan assets
allocable to such liabilities under Title IV of ERISA (excluding any accrued but
unpaid contributions), all determined as of the then most recent valuation date
for such Plan, but only to the extent that such excess represents a potential
liability of a member of the ERISA Group to the PBGC or any other Person under
Title IV of ERISA.

    

    “Unsecured Indebtedness” means,
with respect to a Person, all Indebtedness of such Person that is not Secured
Indebtedness.

    

    “Unsecured Liabilities” means,
as to any Person as of a given date, the sum of the following (without
duplication): (a) all unsecured liabilities which would, in conformity with
GAAP, be properly classified as a liability on the balance sheet of such Person
as at such date plus (b) all
Unsecured Indebtedness of such Person.

    

    “Wells Fargo” means Wells Fargo
Bank, National Association, and its successors and permitted
assigns.

    
      
         

      

      
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    “Wholly Owned Subsidiary” means
any Subsidiary of a Person in respect of which all of the equity securities or
other ownership interests (other than, in the case of a corporation, directors’
qualifying shares) are at the time directly or indirectly owned or controlled by
such Person or one or more other Subsidiaries of such Person or by such Person
and one or more other Subsidiaries of such Person.

     

    Section 1.2.  General;
References to San Francisco Time.

     

    Unless otherwise indicated, all
accounting terms, ratios and measurements shall be interpreted or determined in
accordance with GAAP in effect as of the Agreement Date. References in this
Agreement to “Sections”, “Articles”, “Exhibits” and “Schedules” are to sections,
articles, exhibits and schedules herein and hereto unless otherwise
indicated.  References in this Agreement to any document, instrument
or agreement (a) shall include all exhibits, schedules and other
attachments thereto, (b) shall include all documents, instruments or
agreements issued or executed in replacement thereof, to the extent permitted
hereby and (c) shall mean such document, instrument or agreement, or
replacement or predecessor thereto, as amended, supplemented, restated or
otherwise modified from time to time to the extent permitted hereby and in
effect at any given time.  Wherever from the context it appears
appropriate, each term stated in either the singular or plural shall include the
singular and plural, and pronouns stated in the masculine, feminine or neuter
gender shall include the masculine, the feminine and the
neuter.  Unless explicitly set forth to the contrary, a reference to
“Subsidiary” means a Subsidiary of the Borrower or a Subsidiary of such
Subsidiary and a reference to an “Affiliate” means a reference to an Affiliate
of the Borrower.  Titles and captions of Articles, Sections,
subsections and clauses in this Agreement are for convenience only, and neither
limit nor amplify the provisions of this Agreement.  Unless otherwise
indicated, all references to time are references to San Francisco, California
time.

    

    Article
II. Credit Facility

     

    Section 2.1.  Revolving
Loans.

     

    (a)           Making of Revolving
Loans.  Subject to the terms and conditions set forth in this
Agreement, including without limitation, Section 2.14. below, each Lender
severally and not jointly agrees to make Revolving Loans to the Borrower during
the period from and including the Effective Date to but excluding the
Termination Date, in an aggregate principal amount at any one time outstanding
up to, but not exceeding, such Lender’s Pro Rata Share of the Maximum Loan
Availability (but in no event in excess of such Lender’s
Commitment).  Within the foregoing limits and subject to the terms and
conditions of this Agreement, the Borrower may borrow, repay and reborrow
Revolving Loans.

    

    (b)           Requests for Revolving
Loans. Not later than 9:00 a.m. San Francisco time at least two (2)
Business Days prior to a borrowing of Base Rate Loans and not later than 9:00
a.m. San Francisco time at least three (3) Business Days prior to a borrowing of
LIBOR Loans, the Borrower shall deliver to the Agent a Notice of
Borrowing.  Each Notice of Borrowing shall specify the aggregate
principal amount of the Revolving Loans to be borrowed, the date such Revolving
Loans are to be borrowed (which must be a Business Day), the use of the proceeds
of

    
      
         

      

      
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    such
Revolving Loans, the Type of the requested Revolving Loans, and if such
Revolving Loans are to be LIBOR Loans, the initial Interest Period for such
Revolving Loans.  Each Notice of Borrowing shall be irrevocable once
given and binding on the Borrower.  Prior to delivering a Notice of
Borrowing, the Borrower may (without specifying whether a Revolving Loan will be
a Base Rate Loan or a LIBOR Loan) request that the Agent provide the Borrower
with the most recent LIBOR rate available to the Agent.  The Agent
shall provide such quoted rate to the Borrower and to the Lenders on the date of
such request or as soon as possible thereafter.

    

    (c)           Funding of Revolving
Loans.  Promptly after receipt of a Notice of Borrowing under
the immediately preceding subsection (b), the Agent shall notify
each Lender by telex or telecopy, or other similar form of transmission of the
proposed borrowing.  Each Lender shall deposit an amount equal to the
Revolving Loan to be made by such Lender to the Borrower with the Agent at the
Principal Office, in immediately available funds not later than 9:00 a.m. San
Francisco time on the date of such proposed Revolving Loans.  Subject
to fulfillment of all applicable conditions set forth herein, the Agent shall
make available to the Borrower at the Principal Office, not later than 12:00
noon San Francisco time on the date of the requested borrowing of Revolving
Loans, the proceeds of such amounts received by the Agent.  No Lender
shall be responsible for the failure of any other Lender to make a Loan or to
perform any other obligation to be made or performed by such other Lender
hereunder, and the failure of any Lender to make a Loan or to perform any other
obligation to be made or performed by it hereunder shall not relieve the
obligation of any other Lender to make any Loan or to perform any other
obligation to be made or performed by such other Lender.

    

    (d)           Assumptions Regarding
Funding by Lenders.  With respect to Revolving Loans to be made
after the Effective Date, unless the Agent shall have been notified by any
Lender that such Lender will not make available to the Agent a Revolving Loan to
be made by such Lender, the Agent may assume that such Lender will make the
proceeds of such Revolving Loan available to the Agent in accordance with this
Section and the Agent may (but shall not be obligated to), in reliance upon such
assumption, make available to the Borrower the amount of such Revolving Loan to
be provided by such Lender.

    

    (e)           Reallocation of Existing
Revolving Loans.  Upon the Effective Date, all Revolving Loans
(as defined under the Existing Credit Agreement) outstanding under the Existing
Credit Agreement shall be deemed to be Revolving Loans outstanding hereunder
being of the same Types, and in the case of LIBOR Loans, having the same
Interest Periods.  As of the Effective Date, such Revolving Loans
shall be allocated among the Lenders in accordance with their respective Pro
Rata Shares.  Each Lender agrees to make such payments to the other
Lenders and any Person who ceases to be a “Lender” under the Existing Credit
Agreement upon the Effective Date in such amounts as are necessary to effect
such allocation.  All such payments shall be made to the Agent for the
account of the Person to be paid.  The Borrower shall pay any amounts
payable to any Lenders under Section 5.4. as a result of such
allocation.

     

    Section 2.2.  Bid
Rate Loans.

     

    (a)           Bid Rate
Loans.  In addition to borrowings of Revolving Loans, at any
time during the period from the Effective Date to but excluding the Termination
Date, and so long as the Borrower continues to maintain an Investment Grade
Rating from any two of  S&P, Moody’s

    
      
         

      

      
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    and
Fitch, the Borrower may, as set forth in this Section, request the Lenders to
make offers to make Bid Rate Loans to the Borrower in Dollars.  The
Lenders may, but shall have no obligation to, make such offers and the Borrower
may, but shall have no obligation to, accept any such offers in the manner set
forth in this Section.

    

    (b)           Requests for Bid Rate
Loans.  When the Borrower wishes to request from the Lenders
offers to make Bid Rate Loans, it shall give the Agent notice (a “Bid Rate Quote
Request”) so as to be received no later than 9:00 a.m. San Francisco time on
(x) the Business Day immediately preceding the date of borrowing proposed
therein, in the case of an Absolute Rate Auction and (y) the date four
Business Days prior to the proposed date of borrowing, in the case of a LIBOR
Auction.  The Agent shall deliver to each Lender a copy of each Bid
Rate Quote Request promptly upon receipt thereof by the Agent.  The
Borrower may request offers to make Bid Rate Loans for up to 3 different
Interest Periods in each Bid Rate Quote Request (for which purpose Interest
Periods in different lettered clauses of the definition of the term “Interest
Period” shall be deemed to be different Interest Periods even if they are
coterminous); provided that the request for each separate Interest Period shall
be deemed to be a separate Bid Rate Quote Request for a separate borrowing (a
“Bid Rate Borrowing”).  Each Bid Rate Quote Request shall be
substantially in the form of Exhibit H and shall specify as to each Bid
Rate Borrowing all of the following:

    

    (i)           the
proposed date of such borrowing, which shall be a Business Day;

    

    (ii)           the
aggregate amount of such Bid Rate Borrowing which shall be in a minimum amount
of $10,000,000 and integral multiples of $1,000,000 in excess thereof which
shall not cause any of the limits specified in Section 2.14. to be
violated;

    

    (iii)           whether
the Bid Rate Quote Request is for LIBOR Margin Loans or Absolute Rate Loans;
and

    

    (iv)           the
duration of the Interest Period applicable thereto, which shall not extend
beyond the Termination Date.

    

    The
Borrower shall not deliver any Bid Rate Quote Request within five Business Days of the
giving of any other Bid Rate Quote Request and the Borrower shall not deliver
more than two Bid Rate Quote Requests in any calendar month.

    

    (c)           Bid Rate
Quotes.

    

    (i)           Each
Lender may submit one or more Bid Rate Quotes, each containing an offer to make
a Bid Rate Loan in response to any Bid Rate Quote Request; provided that, if the
Borrower’s request under Section 2.2.(b) specified more than one
Interest Period, such Lender may make a single submission containing only one
Bid Rate Quote for each such Interest Period.  Each Bid Rate Quote
must be submitted to the Agent not later than 7:30 a.m. San Francisco time
(x) on the proposed date of borrowing, in the case of an Absolute Rate
Auction or (y) on the date three Business Days prior to the proposed date
of borrowing, in the case of a LIBOR Auction, and in either case the Agent
shall

    
      
         

      

      
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    disregard
any Bid Rate Quote received after such time; pro­vided that the Lender then
acting as the Agent may submit a Bid Rate Quote only if it notifies the Borrower
of the terms of the offer contained therein not later than 30 minutes prior to
the latest time by which the Lenders must submit applicable Bid Rate
Quotes.  Subject to Articles VI. and XI., any Bid Rate Quote so made
shall be irrevocable.  Such Bid Rate Loans may be funded by a Lender’s
Designated Lender (if any) as provided in Section 13.6.(d), however such
Lender shall not be required to specify in its Bid Rate Quote whether such Bid
Rate Loan will be funded by such Designated Lender.

    

    (ii)           Each
Bid Rate Quote shall be substantially in the form of Exhibit I and shall
specify:

    

      
(A)           the
proposed date of borrowing and the Interest Period therefor;

    

      
(B)           the
principal amount of the Bid Rate Loan for which each such of­fer is being
made; provided that the aggregate principal amount of all Bid Rate Loans for
which a Lender submits Bid Rate Quotes (x) may be greater or less than the
Commitment of such Lender but (y) shall not exceed the principal amount of
the Bid Rate Borrowing for a particular Interest Period for which offers were
re­quested;

    

      
(C)           in the case
of an Absolute Rate Auction, the rate of interest per annum (rounded upwards, if
necessary, to the nearest 1/1,000th of 1%) offered for each such Absolute Rate
Loan (the “Absolute Rate”);

    

      
(D)           in the case
of a LIBOR Auction, the margin above or below applicable LIBOR (the “LIBOR
Margin”) offered for each such LIBOR Margin Loan, expressed as a percentage to
be added to (or subtracted from) the applicable LIBOR;

    

      
(E)           the
identity of the quoting Lender; and

    

      
(F)           any Bid
Rate Quote shall be in a minimum amount of $5,000,000 and integral multiples
of $100,000 in excess thereof.

    

    No
Bid Rate Quote shall contain qualifying, conditional or similar language or
propose terms other than or in addition to those set forth in the applicable Bid
Rate Quote Request and, in particular, no Bid Rate Quote may be conditioned upon
acceptance by the applicable Borrower of all (or some specified minimum) of the
principal amount of the Bid Rate Loan for which such Bid Rate Quote is being
made.

    

    (d)           Notification by
Agent.  The Agent shall, as promptly as practicable after the
Bid Rate Quotes are submitted (but in any event not later than 8:30 a.m.
San Francisco time (x) on the proposed date of borrowing, in the case of an
Absolute Rate Auction or (y) on the date three Business Days prior to the
proposed date of borrowing, in the case of a LIBOR Auction), notify the Borrower
of the terms (i) of any Bid Rate Quote submitted by a Lender that is in
accordance

    
      
         

      

      
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    with
Section 2.2.(c). and (ii) of any Bid Rate Quote that amends, modifies
or is otherwise inconsistent with a previous Bid Rate Quote submitted by such
Lender with respect to the same Bid Rate Quote Request.  Any such
subsequent Bid Rate Quote shall be disregarded by the Agent unless such
subsequent Bid Rate Quote is submitted solely to correct a manifest error in
such former Bid Rate Quote.  The Agent’s notice to the Borrower shall
specify (A) the aggregate principal amount of the Bid Rate Borrowing for
which offers have been received and (B) the principal amounts and Absolute
Rates or LIBOR Margins, as applicable, so offered by each Lender.

    

    (e)           Acceptance by
Borrower.

    

    (i)           Not
later than 9:30 a.m. San Francisco time (x) on the proposed date of
borrowing, in the case of an Absolute Rate Auction or (y) on the date three
Business Days prior to the proposed date of borrowing, in the case of a LIBOR
Auction, the Borrower shall notify the Agent of its acceptance or nonacceptance
of the offers so notified to it pursuant to Section 2.2.(d). which notice
shall be in the form of Exhibit J.  In the case of acceptance,
such notice shall specify the aggregate principal amount of offers for each
Interest Period that are accepted.  The failure of the Borrower to
give such notice by such time shall constitute nonacceptance.  The
Borrower may accept any Bid Rate Quote in whole or in part; provided
that:

    

    (A)           the
aggregate principal amount of each Bid Rate Borrowing may not exceed the
applicable amount set forth in the related Bid Rate Quote Request;

    

    (B)           the
aggregate principal amount of each Bid Rate Borrowing shall comply with the
provisions of Section 2.2.(b)(ii) but shall not cause the limits specified
in Section 2.14. to be violated;

    

    (C)           acceptance
of offers may be made only in ascending order of Absolute Rates or LIBOR
Margins, as applicable, in each case beginning with the lowest rate so
offered;

    

    (D)           any
acceptance in part by the Borrower shall be in a minimum amount of $5,000,000
and integral multiples of $100,000 in excess thereof; and

    

    (E)           the
Borrower may not accept any offer that fails to comply with Section 2.2.(c)
or otherwise fails to comply with the requirements of this
Agreement.

    

    (ii)           If
offers are made by two or more Lenders with the same Absolute Rates or LIBOR
Margins, as applicable, for a greater aggregate principal amount than the amount
in respect of which offers are ac­cepted for the related Interest Period,
the principal amount of Bid Rate Loans in respect of which such offers are
accepted shall be allocated by the Agent among such Lenders in proportion to the
aggregate principal amount of such offers.  Determinations by the
Agent of the amounts of Bid Rate Loans shall be conclusive in the absence of
manifest error.

    
      
         

      

      
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    (f)           Obligation to Make Bid Rate
Loans.  The Agent shall promptly (and in any event not later
than (x) 10:00 a.m. San Francisco time on the proposed date of borrowing of
Absolute Rate Loans and (y) on the date three Business Days prior to the
proposed date of borrowing of LIBOR Margin Loans) notify each Lender that
submitted a Bid Rate Quote as to whose Bid Rate Quote has been accepted and the
amount and rate thereof.  A Lender who is notified that it has been
selected to make a Bid Rate Loan may designate its Designated Lender (if any) to
fund such Bid Rate Loan on its behalf, as described in Section 13.6.(d). Any
Designated Lender which funds a Bid Rate Loan shall on and after the time of
such funding become the obligee under such Bid Rate Loan and be entitled to
receive payment thereof when due.  No Lender shall be relieved of its
obligation to fund a Bid Rate Loan, and no Designated Lender shall assume such
obligation, prior to the time the applicable Bid Rate Loan is
funded.  Any Lender whose offer to make any Bid Rate Loan has been
accepted shall, not later than 11:00 a.m. San Francisco time on the date
specified for the making of such Loan, make the amount of such Loan available to
the Agent at its Principal Office in immediately available funds, for the
ac­count of the Borrower.  The amount so received by the Agent
shall, subject to the terms and conditions of this Agreement, be made available
to the Borrower not later than 12:00 noon on such date by depositing the same,
in immediately available funds, in an account of the Borrower designated by the
Borrower.

    

    (g)           No Effect on
Commitment.  Except for the purpose and to the extent expressly
stated in Section 2.12., the amount of any Bid Rate Loan made by any Lender
shall not constitute a utilization of such Lender’s Commitment.

     

    Section 2.3.  Swingline
Loans.

     

    (a)           Swingline
Loans.  Subject to the terms and conditions hereof, including
without limitation Section 2.14., the Swingline Lender agrees to make Swingline
Loans to the Borrower, during the period from the Effective Date to but
excluding the Swingline Termination Date, in an aggregate principal amount at
any one time outstanding up to, but not exceeding, $50,000,000, as such amount
may be reduced from time to time in accordance with the terms
hereof.  If at any time the aggregate principal amount of the
Swingline Loans outstanding at such time exceeds the Swingline Commitment in
effect at such time, the Borrower shall immediately pay the Agent for the
account of the Swingline Lender the amount of such excess.  Subject to
the terms and conditions of this Agreement, the Borrower may borrow, repay and
reborrow Swingline Loans hereunder.

    

    (b)           Procedure for Borrowing
Swingline Loans.  The Borrower shall give the Agent and the
Swingline Lender notice pursuant to a Notice of Swingline Borrowing delivered no
later than 9:00 a.m. San Francisco time on the proposed date of such
borrowing.  Any telephonic notice shall include all information to be
specified in a written Notice of Swingline Borrowing.  Not later than
11:00 a.m. San Francisco time on the date of the requested Swingline Loan
and subject to satisfaction of the applicable conditions set forth in
Article VI. for such borrowing, the Swingline Lender will make the proceeds
of such Swingline Loan available to the Borrower in Dollars, in immediately
available funds, at the account specified by the Borrower in the Notice of
Swingline Borrowing.

    
      
         

      

      
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(c)           Interest.  Each
Swingline Loan shall bear interest, for the Interest Period applicable thereto,
at a per annum rate equal to Swingline LIBOR applicable to such Interest Period
(as designated by the Borrower in the Notice of Swingline Borrowing) plus the
Applicable Margin for Swingline Loans or at such other rate or rates as the
Borrower and the Swingline Lender may agree from time to time in
writing.  All accrued and unpaid interest on Swingline Loans shall be
payable on the dates and in the manner provided in Section 2.4.(b) (except
as the Swingline Lender and the Borrower may otherwise agree in writing in
connection with any particular Swingline Loan).

    

    (d)           Swingline Loan Amounts,
Etc.  Each Swingline Loan shall be in the minimum amount of
$500,000 and
integral multiples of $100,000 in excess thereof, or
such other minimum amounts agreed to by the Swingline Lender and the
Borrower.  Any voluntary prepayment of a Swingline Loan must be in
integral multiples of $100,000 or the aggregate principal amount of all
outstanding Swingline Loans (or such other minimum amounts upon which the
Swingline Lender and the Borrower may agree) and in connection with any such
prepayment, the Borrower must give the Swingline Lender prior written notice
thereof no later than 10:00 a.m. San Francisco time on the day prior to the
date of such prepayment.

    

    (e)           Repayment and Participations
of Swingline Loans.  The Borrower agrees to repay each
Swingline Loan on the last day of the Interest Period applicable thereto and, in
any event, within 10 Business Days after the
date such Swingline Loan was made.  All accrued and unpaid interest on
Swingline Loans shall be payable on the dates and in the manner provided in
Section 2.4.(b) (except as the Swingline Lender and the Borrower may
otherwise agree in writing in connection with any particular Swingline
Loan).  Notwithstanding the foregoing, the Borrower shall repay the
entire outstanding principal amount of, and all accrued but unpaid interest on,
the Swingline Loans on the Swingline Termination Date (or such earlier date as
the Swingline Lender and the Borrower may agree in writing).  The
Borrower, or the Swingline Lender on behalf of the Borrower (which hereby
irrevocably directs the Swingline Lender to act on its behalf), may request a
borrowing of Base Rate Loans from the Lenders in an amount equal to the
principal balance of such Swingline Loan.  The Swingline Lender shall
give notice to the Agent and the Borrower of any such borrowing of Base Rate
Loans not later than 9:00 a.m. San Francisco time at least one Business Day
prior to the proposed date of such borrowing.  The Borrower shall give
notice to the Agent of any such borrowing of Base Rate Loans not later than 9:00
a.m. San Francisco time at least two Business Days prior to the proposed date of
such borrowing.  The amount limitations contained in Section 3.5.
shall not apply to any borrowing of Base Rate Loans made pursuant to this
subsection.  Each Lender will make available to the Agent at the
Principal Office for the account of the Swingline Lender, in immediately
available funds, the proceeds of the Base Rate Loan to be made by such
Lender.  The Agent shall pay the proceeds of such Base Rate Loans to
the Swingline Lender, which shall apply such proceeds to repay such Swingline
Loan.  If the Lenders are prohibited from making Loans required to be
made under this subsection for any reason whatsoever, including without
limitation, the occurrence of any of the Defaults or Events of Default described
in Sections 11.1.(e) and (f), each Lender shall purchase from the Swingline
Lender, without recourse or warranty, an undivided interest and participation to
the extent of such Lender’s Pro Rata Share of such Swingline Loan, by directly
purchasing a participation in such Swingline Loan in such amount and paying the
proceeds thereof to the Agent for the account of the Swingline Lender in
Dollars

    
      
         

      

      
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    and
in immediately available funds.  A Lender’s obligation to purchase
such a participation in a Swingline Loan shall be absolute and unconditional and
shall not be affected by any circumstance whatsoever, including without
limitation, (i) any claim of setoff, counterclaim, recoupment, defense or
other right which such Lender or any other Person may have or claim against the
Agent, the Swingline Lender or any other Person whatsoever, (ii) the
occurrence or continuation of a Default or Event of Default (including without
limitation, any of the Defaults or Events of Default described in
Sections 11.1.(e) and (f)), or the termination of any Lender’s Commitment,
(iii) the existence (or alleged existence) of an event or condition which
has had or could have a Material Adverse Effect, (iv) any breach of any
Loan Document by the Agent, any Lender or the Borrower or (v) any other
circumstance, happening or event whatsoever, whether or not similar to any of
the foregoing.  If such amount is not in fact made available to the
Swingline Lender by any Lender, the Swingline Lender shall be entitled to
recover such amount on demand from such Lender, together with accrued interest
thereon for each day from the date of demand thereof, at the Federal Funds
Rate.  If such Lender does not pay such amount forthwith upon the
Swingline Lender’s demand therefor, and until such time as such Lender makes the
required payment, the Swingline Lender shall be deemed to continue to have
outstanding Swingline Loans in the amount of such unpaid participation
obligation for all purposes of the Loan Documents (other than those provisions
requiring the other Lenders to purchase a participation
therein).  Further, such Lender shall be deemed to have assigned any
and all payments made of principal and interest on its Loans, and any other
amounts due it hereunder, to the Swingline Lender to fund Swingline Loans in the
amount of the participation in Swingline Loans that such Lender failed to
purchase pursuant to this Section until such amount has been purchased (as a
result of such assignment or otherwise).

    

    
      Section 2.4.  Rates
and Payment of Interest on Loans.

    

     

    (a)           Rates.  The
Borrower promises to pay to the Agent for the account of each Lender interest on
the unpaid principal amount of each Loan made by such Lender for the period from
and including the date of the making of such Loan to but excluding the date such
Loan shall be paid in full, at the following per annum rates:

    

      
(i)         during such periods as
such Loan is a Base Rate Loan, at the Base Rate (as in effect from time to
time);

    

       (ii) during
such periods as such Loan is a LIBOR Loan, at LIBOR for such Loan for the
Interest Period therefor, plus the Applicable Margin for LIBOR
Loans;

    

       (iii) during
such periods as such Loan is an Absolute Rate Loan,  at the Absolute
Rate for such Loan for the Interest Period therefor quoted by the Lender making
such Loan in accordance with Section 2.2.;

    

      
(iv) during
such periods as such Loan is a LIBOR Margin Loan, at LIBOR for such Loan for the
Interest Period therefor plus the LIBOR Margin quoted by the Lender making such
Loan in accordance with Section 2.2.; and

    

      
(v) with
respect to a Swingline Loan, at the rate set forth in Section
2.3.(c).

    
      
         

      

      
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    Notwithstanding
the foregoing, during the continuance of an Event of Default, the Borrower shall
pay to the Agent for the account of each Lender interest at the Post-Default
Rate on the outstanding principal amount of any Loan made by such Lender and on
any other amount payable by the Borrower hereunder or under the Notes held by
such Lender to or for the account of such Lender (including without limitation,
accrued but unpaid interest to the extent permitted under Applicable
Law).

    

    (b)           Payment of Interest.
All accrued and unpaid interest on the outstanding principal amount of each Loan
(including, without limitation, Swingline Loans) shall be payable (i) on the
first Business Day of each month commencing with June 2, 2008, (ii) on the
Termination Date and (iii) on any date on which the principal balance of
such Loan is due and payable in full.  Interest payable at the
Post-Default Rate shall be payable from time to time on demand.  All
determinations by the Agent of an interest rate hereunder shall be conclusive
and binding on the Lenders and the Borrower for all purposes, absent manifest
error.

    

    (c)           Borrower Information used to
Determine Applicable Interest Rates.  The parties understand
that the applicable interest rate for the Obligations and certain fees set forth
herein shall be determined and/or adjusted from time to time based upon certain
information to be provided or certified to the Lenders by Borrower (the
“Borrower Information”).  If it is subsequently determined that any
such Borrower Information was incorrect (for whatever reason, including without
limitation because of a subsequent restatement of earnings by the Borrower) at
the time it was delivered to the Agent, and if the applicable interest rate
and/or fees calculated for any period were lower than they should have been had
the correct information been timely provided, then such interest rate for such
period and/or such fees shall be automatically recalculated using correct
Borrower Information.  The Agent shall promptly notify Borrower in
writing of any additional interest and fees due because of such recalculation,
and the Borrower shall pay such additional interest or fees due to the Agent,
for the account of each Lender, within 5 Business Days of receipt of such
written notice.  Any recalculation of interest and fees required by
this provision shall survive the termination of this Agreement, and this
provision shall not in any way limit any of the Agent’s or any Lender’s other
rights under this Agreement.

    

    
      Section 2.5.  Number
of Interest Periods.

    

     

    There may be no more than 10 different
Interest Periods with respect to the LIBOR Loans, Swingline Loans and Bid Rate Loans on a
collective basis outstanding at the same time.

    

    
      Section 2.6.  Repayment
of Loans.

    

     

    The Borrower shall repay the entire
outstanding principal amount of, and all accrued but unpaid interest on, the
Revolving Loans on the Termination Date.  The Borrower shall repay the
entire outstanding principal amount of each Bid Rate Loan on the last day of the
Interest Period of such Bid Rate Loan.

    

    
      Section 2.7.  Prepayments.

    

     

    (a)           Optional.  Subject
to Section 5.4., the Borrower may prepay any Loan at any time without
premium or penalty.  The Borrower shall give the Agent at least 3
Business Days prior

    
      
         

      

      
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    written
notice of the prepayment of any Loan.  Bid Rate Loans may not be
prepaid at the option of the Borrower.

    

    (b)           Mandatory.

    

      
(i)           Commitment
Overadvance.  If at any time the aggregate principal amount of
all outstanding Revolving Loans exceeds the aggregate amount of the Commitments,
the Borrower shall immediately upon demand pay to the Agent for the account of
the Lenders, the amount of such excess.

    

      
(ii)           Borrowing Base
Overadvance.  If at any time the aggregate principal amount of
all outstanding Revolving Loans exceeds the Maximum Loan Availability, the
Borrower shall within 5 days of the Borrower obtaining knowledge of the
occurrence of any such excess, deliver to the Agent for prompt distribution to
each Lender a written plan acceptable to all of the Lenders to eliminate such
excess.  If such excess is not eliminated within 15 Business Days of
the Borrower obtaining knowledge of the occurrence thereof, then the entire
outstanding principal balance of all Loans, together with all accrued interest
thereon, shall be immediately due and payable in full.

    

      
(iii)           Bid Rate Facility
Overadvance.  If at any time the aggregate principal amount of
all outstanding Bid Rate Loans exceeds one-half of the aggregate amount of all
Commitments at such time, then the Borrower shall immediately pay to the Agent
for the accounts of the applicable Lenders the amount of such
excess.  Such payment shall be applied as provided in
Section 3.2.(e).

    

    All
payments under this subsection (b) shall be applied to pay all amounts of excess
principal outstanding on the applicable Loans in accordance with
Section 3.2.

    

    
      Section
2.8.  Late Charges.

    

     

    If any payment required under this
Agreement is not paid within 10 days after the Borrower has received notice from
the Agent that such payment has not been made, the Borrower shall pay a late
charge for late payment to compensate the Lenders for the loss of use of funds
and for the expenses of handling the delinquent payment, in an amount equal to
two percent (2%) of such delinquent payment.  Such late charge shall
be paid in any event not later than the due date of the next subsequent
installment of principal and/or interest.  In the event the maturity
of the Obligations hereunder occurs or is accelerated pursuant to Section
2.7.(b)(ii) or Section 11.2., this Section shall apply only to payments
overdue prior to the time of such acceleration.  This Section shall
not be deemed to be a waiver of the Lenders’ right to accelerate payment of any
of the Obligations as permitted under the terms of this Agreement.

    

    
      Section 2.9.  Continuation.

    

     

    So long as no Default or Event of
Default exists, the Borrower may on any Business Day, with respect to any LIBOR
Loan, elect to maintain such LIBOR Loan or any portion thereof as a LIBOR Loan
by selecting a new Interest Period for such LIBOR Loan.  Each new
Interest Period selected under this Section shall commence on the day following
the last day of the immediately

    
      
         

      

      
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    preceding
Interest Period.  Each selection of a new Interest Period shall be
made by the Borrower giving to the Agent a Notice of Continuation not later than
9:00 a.m. San Francisco time on the third Business Day prior to the date of
any such Continuation.  Such notice by the Borrower of a Continuation
shall be by telecopy or other similar form of transmission in the form of a
Notice of Continuation, specifying (a) the proposed date of such
Continuation, (b) the LIBOR Loan and portion thereof subject to such
Continuation and (c) the duration of the selected Interest Period, all of
which shall be specified in such manner as is necessary to comply with all
limitations on Loans outstanding hereunder.  Each Notice of
Continuation shall be irrevocable by and binding on the Borrower once
given.  Promptly after receipt of a Notice of Continuation, the Agent
shall notify each Lender by telecopy or other similar form of transmission of
the proposed Continuation.  If the Borrower shall fail to select in a
timely manner a new Interest Period for any LIBOR Loan in accordance with this
Section, such Loan will automatically, on the last day of the current Interest
Period therefor, Convert into a Base Rate Loan notwithstanding failure of the
Borrower to comply with Section 2.10.

    

    
      Section 2.10.  Conversion.

    

     

    So long as no Default or Event of
Default exists, the Borrower may on any Business Day, upon the Borrower’s giving
of a Notice of Conversion to the Agent, Convert all or a portion of a Loan of
one Type into a Loan of another Type.  Any Conversion of a LIBOR Loan
into a Base Rate Loan shall be made on, and only on, the last day of an Interest
Period for such LIBOR Loan and, upon Conversion of a Base Rate Loan into a LIBOR
Loan, the Borrower shall pay accrued interest to the date of Conversion on the
principal amount so Converted.  Each such Notice of Conversion shall
be given not later than 9:00 a.m. San Francisco time one Business Day prior
to the date of any proposed Conversion into Base Rate Loans and three Business
Days prior to the date of any proposed Conversion into LIBOR
Loans.  Promptly after receipt of a Notice of Conversion, the Agent
shall notify each Lender by telecopy, electronic mail or other similar form of
transmission of the proposed Conversion.  Subject to the restrictions
specified above, each Notice of Conversion shall be by telecopy in the form of a
Notice of Conversion specifying (a) the requested date of such Conversion,
(b) the Type of Loan to be Converted, (c) the portion of such Type of
Loan to be Converted, (d) the Type of Loan such Loan is to be Converted
into and (e) if such Conversion is into a LIBOR Loan, the requested
duration of the Interest Period of such Loan.  Each Notice of
Conversion shall be irrevocable by and binding on the Borrower once
given.

    

    
      Section 2.11.  Notes.

    

     

    The Revolving Loans made by each Lender
shall, in addition to this Agreement, also be evidenced by a Revolving Note,
payable to the order of such Lender in a principal amount equal to the amount of
its Commitment as originally in effect and otherwise duly
completed.  The Bid Rate Loans made by any Lender to the Borrower
shall, in addition to this Agreement, also be evidenced by a Bid Rate Note
payable to the order of such Lender.  The Swingline Loans made by the
Swingline Lender to the Borrower shall, in addition to this Agreement, also be
evidenced by a Swingline Note payable to the order of the Swingline
Lender.

    
      
         

      

      
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    Section 2.12.  Voluntary
Reductions of the Commitment.

     

    The Borrower may terminate or reduce
the amount of the Commitments (for which purpose use of the Commitments shall be
deemed to include the aggregate principal amount of all outstanding Bid Rate
Loans and Swingline Loans) at any time and from time to time without penalty or
premium upon not less than five (5) Business Days prior notice to the Agent of
each such termination or reduction, which notice shall specify the effective
date thereof and the amount of any such reduction (which in the case of any
partial reduction of the Commitments shall not be less than $10,000,000 and integral multiples
of $1,000,000 in excess of that amount in the aggregate) and shall be
irrevocable once given and effective only upon receipt by the Agent (“Prepayment
Notice”).  Promptly after receipt of a Prepayment Notice the Agent
shall notify each Lender by telecopy, or other similar form of transmission of
the proposed termination or Commitment reduction.   The
Commitments, once reduced pursuant to this Section, may not be
increased.  The Borrower shall pay all interest and fees, on the Loans
accrued to the date of such reduction or termination of the Commitments to the
Agent for the account of the Lenders, including but not limited to any
applicable compensation due to each Lender in accordance with Section 5.4.
of this Agreement.

    

    
      Section
2.13.  Extension of Termination Date.

    

     

    (a)           Initial
Extension.  The Borrower may request that the Agent and the
Lenders extend the current Termination Date by one year by executing and
delivering to the Agent at least 90 days but not more than 360 days prior to the
current Termination Date, a written request for such extension in the form of
Exhibit M (an “Extension Request”).  The Agent shall forward to each
Lender a copy of the Extension Request delivered to the Agent promptly upon
receipt thereof.  Subject to satisfaction of the following conditions,
the Termination Date shall be extended for one year: (a) immediately prior
to such extension and immediately after giving effect thereto, no Default or
Event of Default shall have occurred and be continuing and (b) the Borrower
shall have paid the Fees payable under Section 3.6.(e).  The
Termination Date may be extended only one time pursuant to this
subsection.

    

    (b)           Subsequent
Extension.  In addition to the extension option set forth in
the immediately preceding clause (a), the Borrower shall have the right,
exercisable one time, to request that the Agent and the Lenders agree to extend
the then current Termination Date by an additional year.  To exercise
such right the Borrower shall execute and deliver an Extension Request to the
Agent at least 90 days but not more than 360 days prior to the then current
Termination Date (as such date has been extended pursuant to subsection (a)
above).  If the Agent shall receive such a request, the Agent shall
forward a copy of it to each Lender promptly upon receipt thereof.  If
all of the Lenders shall have notified the Agent on or before the date 45 days
after receipt by the Lenders of such request that they accept such request,
then, upon payment of the extension fee payable under Section 3.6.(e). the
Termination Date shall be extended for a single one-year period.  If
any Lender shall not have notified the Agent on or prior to the date which is
the date 45 days after receipt by the Lenders of such request that it accepts
the such request, the Termination Date shall not be extended except as otherwise
permitted under the immediately following subsection (c).  The
Agent shall promptly notify the Borrower whether a request for an extension has
been accepted or rejected as well as which Lender or Lenders rejected such
request (each such Lender, a “Rejecting Lender”).  The
Borrower

    
      
         

      

      
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    understands
and acknowledges that (i) this Section has been included in this Agreement
for the Borrower’s convenience in requesting an extension of the Termination
Date; (ii) neither the Agent nor any Lender has promised (either expressly
or impliedly), nor does the Agent or any Lender have any obligation or
commitment whatsoever, to extend the Termination Date and (iii) the Agent
and the Lenders may condition any such extension on such terms and conditions as
they may deem appropriate in their sole and absolute
discretion.  Notwithstanding the preceding subsections, if Requisite
Lenders do not approve a request for an extension of the Termination Date or if
a Default or Event of Default exists on the then current Termination Date or
would exist after giving effect to any of the transactions contemplated by this
Section, then the Termination Date shall not be extended.

    

    (c)           Rejecting
Lenders.  Notwithstanding the preceding subsection (b), if the
Borrower receives notification from the Agent that a request for an extension of
the Termination Date has been rejected (a “Notice of Rejection”), and provided
that the Lenders comprising the Requisite Lenders have approved of such request,
the Borrower may elect, with respect to each such Rejecting Lender, by giving
written notice to the Agent of such election within 30 days after receipt
by the Borrower of a Notice of Rejection, to either (i) require such
Rejecting Lender to assign its Commitment to an Eligible Assignee as
contemplated in the immediately following clause (x) or (ii) pay in full
the amount of Loans, interest and fees owing to such Rejecting Lender and
terminate such Rejecting Lender’s Commitment as contemplated in the immediately
following clause (y).  If the Borrower has made a timely election as
permitted by the preceding sentence, then the Borrower shall take either of the
following actions as specified in such election: (x) demand that such
Rejecting Lender, and upon such demand such Rejecting Lender shall be obligated
to, assign its Commitment to an Eligible Assignee subject to and in accordance
with the provisions of Section 13.6.(c) for a purchase price equal to the
aggregate principal balance of Loans then outstanding and owing to such
Rejecting Lender plus any accrued but
unpaid interest thereon and accrued but unpaid fees owing to such Rejecting
Lender, any such assignment to be effective as of the current Termination Date
or (y) effective as of the current Termination Date, pay to such Rejecting
Lender the aggregate principal balance of Loans then outstanding and owing to
such Rejecting Lender plus any accrued but
unpaid interest thereon and accrued but unpaid fees owing to such Rejecting
Lender, together with all amounts, if any, payable under Section 5.4.,
whereupon such Rejecting Lender’s Commitment shall terminate.  Each of
the Agent, the Borrower and the Rejecting Lender shall reasonably cooperate in
effectuating the replacement of such Rejecting Lender under this Section,
provided, however, that neither the Agent, such Rejecting Lender, nor any other
Lender shall be obligated in any way whatsoever to initiate any such replacement
or to assist in finding an Assignee.  If the Borrower has elected to
cause all Rejecting Lenders either to assign their Commitments to Eligible
Assignees as contemplated by the preceding clause (x) or to be paid the amounts
specified in the preceding clause (y), then the Borrower’s request for an
extension which was initially rejected shall be deemed to have been granted and
accordingly the Termination Date shall be extended by one single year, otherwise
the Termination Date shall not be extended.

    

    
      Section 2.14.  Amount
Limitations.

    

     

    Notwithstanding any other term of this
Agreement or any other Loan Document, (a) no Lender shall be required to
make any Loan if, immediately after the making of such Loan the aggregate
principal amount of all outstanding Loans, would exceed either (i) the
aggregate

    
      
         

      

      
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    amount
of the Commitments or (ii) the Maximum Loan Availability and (b) the
aggregate principal amount of all outstanding Bid Rate Loans shall not exceed
one-half of the aggregate amount of all Commitments at such time.

    

    
      Section 2.15.  Increase
in Commitments.

    

     

    The Borrower shall have the right to
request increases in the aggregate amount of the Commitments by providing
written notice to the Agent, which notice shall be irrevocable once given;
provided, however, that after giving effect to any such increases the aggregate
amount of the Commitments shall not exceed $455,000,000.  Each such
increase in the Commitments must be an aggregate minimum amount of
$5,000,000 and
integral multiples of $1,000,000 in excess
thereof.  The Agent shall promptly notify each Lender of any such
request.  No Lender shall be obligated in any way whatsoever to
increase its Commitment.  If a new Lender becomes a party to this
Agreement, or if any existing Lender agrees to increase its Commitment, such
Lender shall on the date it becomes a Lender hereunder (or in the case of an
existing Lender, increases its Commitment) (and as a condition thereto) purchase
from the other Lenders its Pro Rata Share (determined with respect to the
Lenders’ relative Commitments and after giving effect to the increase of
Commitments) of any outstanding Loans, by making available to the Agent for the
account of such other Lenders, in same day funds, an amount equal to the sum of
(A) the portion of the outstanding principal amount of such Loans to be
purchased by such Lender plus (B) interest accrued and unpaid to and as of
such date on such portion of the outstanding principal amount of such
Loans.  The Borrower shall pay to the Lenders amounts payable, if any,
to such Lenders under Section 5.4. as a result of the prepayment of any
such Loans.  No increase of the Commitments may be effected under this
Section (x) unless no Default or Event of Default will be in existence on
the effective date of such increase, (y) unless the Borrower can
demonstrate to the reasonable satisfaction of the Agent that, after giving
effect to such increase, the Borrower will be in compliance with Section 10.1.
and (z) if any representation or warranty made or deemed made by the
Borrower or any other Loan Party in any Loan Document to which such Loan Party
is a party is not (or would not be) true or correct on the effective date of
such increase except to the extent that such representations and warranties
expressly relate solely to an earlier date (in which case such representations
and warranties shall have been true and accurate on and as of such earlier date)
and except for changes in factual circumstances specifically and expressly
permitted hereunder.  In connection with any increase in the aggregate
amount of the Commitments pursuant to this Section (a) any Lender becoming
a party hereto shall execute such documents and agreements as the Agent may
reasonably request and (b) the Borrower shall make appropriate arrangements
so that each new Lender, and any existing Lender increasing its Commitment,
receives a new or replacement Note, as appropriate, in the amount of such
Lender’s Commitment at the time of the effectiveness of the applicable increase
in the aggregate amount of Commitments.

    

    
      Section 2.16.  Funds
Transfer Disbursements.

    

     

    (a)           Generally.  The
Borrower hereby authorizes the Agent to disburse the proceeds of any Loan made
by the Lenders or any of their Affiliates pursuant to the Loan Documents as
requested by any two authorized representatives of the Borrower acting jointly
to any of the accounts designated in the Transfer Authorizer Designation
Form.  The Borrower agrees to be bound by any transfer request: (i)
authorized or transmitted by the Borrower; or (ii) made in the

    
      
         

      

      
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    Borrower’s
name and accepted by the Agent in good faith and in compliance with these
transfer instructions, even if not properly authorized by the
Borrower.  The Borrower further agrees and acknowledges that the Agent
may rely solely on any bank routing number or identifying bank account number or
name provided by the Borrower to effect a wire of funds transfer even if the
information provided by the Borrower identifies a different bank or account
holder than named by the Borrower.  The Agent is not obligated or
required in any way to take any actions to detect errors in information provided
by the Borrower.  If the Agent takes any actions in an attempt to
detect errors in the transmission or content of transfer requests or takes any
actions in an attempt to detect unauthorized funds transfer requests, the
Borrower agrees that no matter how many times the Agent takes these actions the
Agent will not in any situation be liable for failing to take or correctly
perform these actions in the future and such actions shall not become any part
of the transfer disbursement procedures authorized under this provision, the
Loan Documents, or any agreement between the Agent and the
Borrower.  The Borrower agrees to notify the Agent of any errors in
the transfer of any funds or of any unauthorized or improperly authorized
transfer requests within 14 days after the Agent’s confirmation to the Borrower
of such transfer.

    

    (b)           Funds
Transfer.  The Agent will, in its sole discretion, determine
the funds transfer system and the means by which each transfer will be
made.  The Agent may delay or refuse to accept a funds transfer
request if the transfer would: (i) violate the terms of this authorization; (ii)
require use of a bank unacceptable to the Agent or any Lender or prohibited by
any Governmental Authority; (iii) cause the Agent or any Lender to violate any
Federal Reserve or other regulatory risk control program or guideline; or (iv)
otherwise cause the Agent or any Lender to violate any Applicable Law or
regulation.

    

    (c)           Limitation of
Liability.  Neither the Agent nor any Lender shall be liable to
the Borrower or any other parties for (i) errors, acts or failures to act of
others, including other entities, banks, communications carriers or
clearinghouses, through which the Borrower’s transfers may be made or
information received or transmitted, and no such entity shall be deemed an agent
of the Agent or any Lender, (ii) any loss, liability or delay caused by fires,
earthquakes, wars, civil disturbances, power surges or failures, acts of
government, labor disputes, failures in communications networks, legal
constraints or other events beyond the Agent’s or any Lender’s control, or (iii)
any special, consequential, indirect or punitive damages, whether or not (x) any
claim for these damages is based on tort or contract or (y) the Agent, any
Lender or the Borrower knew or should have known the likelihood of these damages
in any situation.  Neither the Agent nor any Lender makes any
representations or warranties other than those expressly made in this
Agreement.

    

    Article
III. Payments, Fees and Other General Provisions

     

    
      Section 3.1.  Payments.

    

     

    Except to the extent otherwise provided
herein, all payments of principal, interest and other amounts to be made by the
Borrower under this Agreement or any other Loan Document shall be made in
Dollars, in immediately available funds, without deduction, set-off or
counterclaim, to the Agent, not later than 11:00 a.m. San Francisco time on
the date on which such payment shall become due (each such payment made after
such time on such due date to be deemed to have been made on the next succeeding
Business Day).  The Borrower shall, at the 

      
        
           

        

        
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    time
of making each payment under this Agreement or any Note, specify to the Agent
the amounts payable by the Borrower hereunder to which such payment is to be
applied.  Each payment received by the Agent for the account of a
Lender under this Agreement or any Note of such Lender shall be paid to such
Lender, by wire transfer of immediately available funds in accordance with the
wiring instructions provided by such Lender to the Agent from time to time, for
the account of such Lender at the applicable Lending Office of such
Lender.  If the Agent fails to pay such amount to a Lender within one
Business Day of receipt thereof by the Agent, the Agent shall pay interest on
such amount until paid at a rate per annum equal to the Federal Funds Rate from
time to time in effect.  If the due date of any payment under this
Agreement or any other Loan Document would otherwise fall on a day which is not
a Business Day such date shall be extended to the next succeeding Business Day
and interest shall be payable for the period of such extension.

    

    
      Section 3.2.  Pro
Rata Treatment.

    

     

    Except to the extent otherwise provided
herein:  (a) each borrowing from Lenders under
Section 2.1.(a) shall be made from the Lenders, each payment of the fees
under Sections 3.6.(a) and 3.6.(b) shall be made for the account of the Lenders,
and each termination or reduction of the amount of the Commitments under
Section 2.12. or otherwise pursuant to
this Agreement shall be applied to the respective Commitments of the Lenders,
pro rata according to the amounts of their respective Commitments; (b) each
payment or prepayment of principal of Revolving Loans by the Borrower shall be
made for the account of the Lenders pro rata in accordance with the respective
unpaid principal amounts of the Revolving Loans held by them, provided that if
immediately prior to giving effect to any such payment in respect of any
Revolving Loans the outstanding principal amount of the Revolving Loans shall
not be held by the Lenders pro rata in accordance with their respective
Commitments in effect at the time such Loans were made, then such payment shall
be applied to the Revolving Loans in such manner as shall result, as nearly as
is practicable, in the outstanding principal amount of the Revolving Loans being
held by the Lenders pro rata in accordance with their respective Commitments;
(c) each payment of interest on Revolving Loans by the Borrower shall be
made for the account  of the Lenders pro rata in accordance with the
amounts of interest on such Loans then due and payable to the respective
Lenders; (d) the Conversion and Continuation of Revolving Loans of a
particular Type (other than Conversions provided for by Section 5.5.) shall
be made pro rata among the Lenders according to the amounts of their respective
Revolving Loans  and the then current Interest Period for each
Lender’s portion of each Revolving Loan of such Type shall be coterminous;
(e) each prepayment of principal of Bid Rate Loans by the Borrower pursuant
to Section 2.7.(b)(iii) shall be made for account of the Lenders then owed
Bid Rate Loans pro rata in accordance with the respective unpaid principal
amounts of the Bid Rate Loans then owing to each such Lender; and (f) the
Lenders’ participation in, and payment obligations in respect of, Swingline
Loans under Section 2.3.(e), shall be in accordance with their respective
Pro Rata Shares.  All payments of principal, interest, fees and other
amounts in respect of the Swingline Loans shall be for the account of the
Swingline Lender only (except to the extent any Lender shall have acquired a
participating interest in any such Swingline Loan pursuant to
Section 2.3.(e)).

    
      
         

      

      
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    Section 3.3.  Sharing
of Payments, Etc.

     

    The Borrower agrees that, in addition
to any rights now or hereafter granted under Applicable Law and not by way of
limitation of any such rights, the Agent, each Lender and each Participant is
hereby authorized by the Borrower, at any time or from time to time while an
Event of Default exists, without notice to the Borrower or to any other Person,
any such notice being hereby expressly waived, but in the case of a Lender or a
Participant subject to receipt of the prior written consent of the Agent
exercised in its sole discretion, to set off and to appropriate and to apply any
and all deposits (general or special, including, but not limited to,
indebtedness evidenced by certificates of deposit, whether matured or unmatured)
and any other indebtedness at any time held or owing by the Agent, such Lender
or any affiliate of the Agent or such Lender, to or for the credit or the
account of the Borrower against and on account of any of the Obligations,
irrespective of whether or not any or all of the Loans and all other Obligations
have been declared to be, or have otherwise become, due and payable as permitted
by Section 11.2., and although such obligations shall be contingent or
unmatured.  If a Lender shall obtain payment of any principal of, or
interest on, any Loan under this Agreement or shall obtain payment on any other
Obligation owing by the Borrower or any other Loan Party through the exercise of
any right of set-off, banker’s lien or counterclaim or similar right or
otherwise or through voluntary prepayments directly to a Lender or other
payments made by the Borrower or any other Loan Party to a Lender not in
accordance with the terms of this Agreement and such payment should be
distributed to the Lenders in accordance with Section 3.2. or
Section 11.5., such Lender shall promptly purchase from such other Lenders
participations in (or, if and to the extent specified by such Lender, direct
interests in) the Loans made by the other Lenders or other Obligations owed to
such other Lenders in such amounts, and make such other adjustments from time to
time as shall be equitable, to the end that all the Lenders shall share the
benefit of such payment (net of any reasonable expenses which may actually be
incurred by such Lender in obtaining or preserving such benefit) in accordance
with the requirements of Section 3.2. or Section 11.5., as
applicable.  To such end, all the Lenders shall make appropriate
adjustments among themselves (by the resale of participations sold or otherwise)
if such payment is rescinded or must otherwise be restored.  The
Borrower agrees that any Lender so purchasing a participation (or direct
interest) in the Loans or other Obligations owed to such other Lenders may
exercise all rights of set-off, banker’s lien, counterclaim or similar rights
with the respect to such participation as fully as if such Lender were a direct
holder of Loans in the amount of such participation.  Nothing
contained herein shall require any Lender to exercise any such right or shall
affect the right of any Lender to exercise and retain the benefits of
exercising, any such right with respect to any other indebtedness or obligation
of the Borrower.

    

    
      Section 3.4.  Several
Obligations.

    

     

    No Lender shall be responsible for the
failure of any other Lender to make a Loan or to perform any other obligation to
be made or performed by such other Lender hereunder, and the failure of any
Lender to make a Loan or to perform any other obligation to be made or performed
by it hereunder shall not relieve the obligation of any other Lender to make any
Loan or to perform any other obligation to be made or performed by such other
Lender.

    
      
         

      

      
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    Section 3.5.  Minimum
Amounts.

     

    (a)           Borrowings.  Each
borrowing of Base Rate Loans shall be in an aggregate minimum amount of
$500,000 and
integral multiples of $100,000 in excess
thereof.  Each borrowing of and Continuation of, and each Conversion
of Base Rate Loans into, LIBOR Loans shall be in an aggregate minimum amount of
$500,000 and
integral multiples of $100,000 in excess of that
amount.

    

    (b)           Prepayments.  Each
voluntary prepayment of Revolving Loans shall be in an aggregate minimum amount
of $1,000,000 and
integral multiples of $100,000 in excess
thereof.

    

    (c)           Reductions of
Commitments.  Each reduction of the Commitments under
Section 2.12. shall be in an aggregate minimum amount of $10,000,000 and integral multiples
of $1,000,000 in
excess thereof.

    

    
      Section 3.6.  Fees.

    

     

    (a)           Closing
Fee.  On the Effective Date, the Borrower agrees to pay to the
Agent and  each Lender all loan fees as have been agreed to in writing
by the Borrower and the Agent or each Lender, as applicable.

    

    (b)           Facility Fees. During
the period from the Effective Date to but excluding the Termination Date, the
Borrower agrees to pay to the Agent for the account of the Lenders a facility
fee equal to the daily aggregate amount of the Commitments (whether or not
utilized) times a rate per annum equal to the Applicable Facility
Fee.  Such fee shall be payable quarterly in arrears on the first day
of each January, April, July and October during the term of this Agreement and
on the Termination Date and will be based on the Applicable Facility Fee
corresponding to the Borrower’s Credit Rating as of the last day of the previous
fiscal quarter (determined in accordance with procedure set forth in the
definition of Applicable Margin).  The Borrower acknowledges that the
fee payable hereunder is a bona fide commitment fee and is intended as
reasonable compensation to the Lenders for committing to make funds available to
the Borrower as described herein and for no other purposes.

    

    (c)           Bid Rate Loan
Fees.  The Borrower agrees to pay to the Agent such fees for
services rendered by the Agent in connection with the Bid Rate Loans as shall be
separately agreed upon between the Borrower and the Agent.

    

    (d)           Administrative and Other
Fees.  The Borrower agrees to pay the administrative and other
fees of the Agent as may be agreed to in writing from time to time.

    

    (e)           Extension
Fee.  If, pursuant to Section 2.13., the Borrower
exercises its right to extend the Termination Date, the Borrower agrees to pay
to the Agent for the account of each Lender so extending an extension fee equal
to (i) in the case of a Lender with a Commitment greater than $80,000,000,
0.2833% of the amount of such Lender’s Commitment at such time, (ii) in the case
of a Lender with a Commitment equal to or less than $80,000,000 but equal to or
greater than $50,000,000, 0.2500% of the amount of such Lender’s Commitment at
such time, (iii) in the case of a Lender with a Commitment less than $50,000,000
but equal to or greater

    
      
         

      

      
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    than
$35,000,000, 0.2167% of the amount of such Lender’s Commitment at such time and
(iv) in the case of a Lender with a Commitment less than $35,000,000,
0.1833% of the amount of such Lender’s Commitment at such time.  Such
fee shall be paid to the Agent prior to, and as a condition to, such extension
but shall be promptly reimbursed to the Borrower if such extension is not
approved by the Requisite Lenders in accordance with
Section 2.13.  Notwithstanding the foregoing, in no event shall
the Borrower be required to pay any extension fee to a Rejecting
Lender.

    

    
      Section 3.7.  Computations.

    

     

    Unless otherwise expressly set forth
herein, any accrued interest on any Loan, any Fees or other Obligations due
hereunder shall be computed on the basis of a year of 360 days and the actual
number of days elapsed.

    

    
      Section 3.8.  Usury.

    

     

    In no event shall the amount of
interest due or payable on the Loans or other Obligations exceed the maximum
rate of interest allowed by Applicable Law and, if any such payment is paid by
the Borrower or received by any Lender, then such excess sum shall be credited
as a payment of principal, unless the Borrower shall notify the respective
Lender in writing that the Borrower elects to have such excess sum returned to
it forthwith.  It is the express intent of the parties hereto that the
Borrower not pay and the Lenders not receive, directly or indirectly, in any
manner whatsoever, interest in excess of that which may be lawfully paid by the
Borrower under Applicable Law.  The parties hereto hereby agree and
stipulate that the only charge imposed upon the Borrower for the use of money in
connection with this Agreement is and shall be the interest specifically
described in Section 2.4.(a)(i) - (iv) and with respect to Swingline Loans,
in Section 2.3.(c).  Notwithstanding the foregoing, the parties hereto
further agree and stipulate that all agency fees, syndication fees, facility
fees, letter of credit fees, underwriting fees, default charges, late charges,
funding or “breakage” charges, increased cost charges, attorneys’ fees and
reimbursement for costs and expenses paid by the Agent or any Lender to third
parties or for damages incurred by the Agent or any Lender, are charges made to
compensate the Agent or any such Lender for underwriting or administrative
services and costs or losses performed or incurred, and to be performed or
incurred, by the Agent and the Lenders in connection with this Agreement and
shall under no circumstances be deemed to be charges for the use of
money.  All charges other than charges for the use of money shall be
fully earned and nonrefundable when due.

    

    
      Section 3.9.  Statements
of Account; Bill Lead Date Request.

    

     

    (a)           The
Agent will account to the Borrower monthly with a statement of Loans, accrued
interest and Fees, charges and payments made pursuant to this Agreement and the
other Loan Documents, and such account rendered by the Agent shall be deemed
conclusive upon the Borrower absent manifest error.  The failure of
the Agent to deliver such a statement of accounts shall not relieve or discharge
the Borrower from any of its Obligations.

    

    (b)           By
written notice to the Agent, the Borrower may request to receive monthly
billings on a date (the “Bill Lead Date”) that is prior to the first day of a
month.  The Agent will 

      
        
           

        

        
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    submit
to the Borrower monthly billings, which will consist of the actual interest and
principal due through the Bill Lead Date plus projected
interest and principal due through the balance, if any, of such
month.  Any necessary adjustments in the applicable interest rate
and/or principal payments due or made between a Bill Lead Date and the end of a
month will be reflected as an additional charge (or credit) in the billing for
the next following month.  Neither the failure of the Agent to submit
a Bill Lead Date billing nor any error in any such billing will excuse the
Borrower’s obligation to make full payment of all amounts due under this
Agreement.  In its sole discretion, the Agent may cancel or modify the
terms of such request which cancellation or modification will be effective upon
written notification to the Borrower.   Should the Borrower
request a Bill Lead Date, the Agent shall not be required to prepare a month end
invoice.

    

    
      Section 3.10.  Defaulting
Lenders.

    

     

    (a)           If
for any reason any Lender (a “Defaulting Lender”) shall fail or refuse to
perform any of its obligations under this Agreement or any other Loan Document
to which it is a party within the time period specified for performance of such
obligation or, if no time period is specified, if such failure or refusal
continues for a period of 5 Business Days after notice from the Agent, then, in
addition to the rights and remedies that may be available to the Agent or the
Borrower under this Agreement or Applicable Law, such Defaulting Lender’s right
to participate in the administration of the Loans, this Agreement and the other
Loan Documents, including without limitation, any right to vote in respect of,
to consent to or to direct any action or inaction of the Agent or to be taken
into account in the calculation of Requisite Lenders, shall be suspended during
the pendency of such failure or refusal.  If for any reason a Lender
fails to make timely payment to the Agent of any amount required to be paid to
the Agent hereunder (without giving effect to any notice or cure periods), in
addition to other rights and remedies which the Agent or the Borrower may have
under the immediately preceding provisions or otherwise, the Agent shall be
entitled (i) to collect interest from such Defaulting Lender on such
delinquent payment for the period from the date on which the payment was due
until the date on which the payment is made at the Federal Funds Rate,
(ii) to withhold or setoff and to apply in satisfaction of the defaulted
payment and any related interest, any amounts otherwise payable to such
Defaulting Lender under this Agreement or any other Loan Document and
(iii) to bring an action or suit against such Defaulting Lender in a court
of competent jurisdiction to recover the defaulted amount and any related
interest.  Any amounts received by the Agent in respect of a
Defaulting Lender’s Loans shall not be paid to such Defaulting Lender and shall
be held by the Agent and paid to such Defaulting Lender upon the Defaulting
Lender’s curing of its default.

    

    (b)           The
Borrower may demand that a Defaulting Lender, and upon such demand such
Defaulting Lender shall promptly, assign its Commitments to an Eligible Assignee
subject to and in accordance with Section 13.6.(c) for a purchase price
equal to the aggregate principal balance of Loans then outstanding and owing to
such Lender plus any accrued but unpaid interest thereon and accrued but unpaid
fees owing to such Lender, whereupon such Defaulting Lender’s Commitment shall
terminate, and such Defaulting Lender shall no longer be a party hereto or have
any rights or obligations hereunder or under any of the other Loan
Documents.  None of the Agent, such Defaulting Lender, or any other
Lender shall be obligated in any way whatsoever to initiate any such replacement
or to assist in finding an Eligible Assignee.

    

    

      
        
           

        

        
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    Section 3.11.  Taxes.

     

    (a)           Taxes
Generally.  All payments to any Lender by the Borrower of
principal of, and interest on, the Loans and all other Obligations shall be made
free and clear of and without deduction for any present or future excise, stamp
or other taxes, fees, duties, levies, imposts, charges, deductions, withholdings
or other charges of any nature whatsoever imposed by any taxing authority, but
excluding (i) franchise taxes, (ii) any taxes (other than withholding
taxes) that would not be imposed but for a connection between the Agent or a
Lender and the jurisdiction imposing such taxes (other than a connection arising
solely by virtue of the activities of the Agent or such Lender pursuant to or in
respect of this Agreement or any other Loan Document), (iii) any taxes
imposed on or measured by any Lender’s assets, net income, receipts or branch
profits; (iv) any taxes to the extent that they are in effect and would
apply to the Agent or Lender immediately prior to the Agreement Date or as of
the date such Person becomes a Lender in the case of an Eligible Assignee
pursuant to Section 13.6.; and (v) any taxes arising after the Agreement
Date solely as a result of or attributable to a Lender changing its designated
Lending Office after the date such Lender becomes a party hereto (such
non-excluded items being collectively called “Taxes”).  If any
withholding or deduction from any payment to be made by the Borrower hereunder
is required in respect of any Taxes pursuant to any Applicable Law, then the
Borrower will:

    

    (i)           pay
directly to the relevant Governmental Authority the full amount required to be
so withheld or deducted;

    

    (ii)           promptly
forward to the Agent an official receipt or other documentation satisfactory to
the Agent evidencing such payment to such Governmental Authority;
and

    

    (iii)           pay
to the Agent for its account or the account of the applicable Lender, as the
case may be, such additional amount or amounts as is necessary to ensure that
the net amount actually received by the Agent or such Lender will equal the full
amount that the Agent or such Lender would have received had no such withholding
or deduction been required.

    

    (b)           Tax
Indemnification.  If the Borrower fails to pay any Taxes when
due to the appropriate Governmental Authority or fails to remit to the Agent,
for its account or the account of the respective Lender, as the case may be, the
required receipts or other required documentary evidence, the Borrower shall
indemnify the Agent and the Lenders for any incremental Taxes, interest or
penalties that may become payable by the Agent or any Lender as a result of any
such failure.  For purposes of this Section, a distribution hereunder
by the Agent or any Lender to or for the account of any Lender shall be deemed a
payment by the Borrower.

    

    (c)           Tax Forms. Prior to
the date that any Lender that is not a “United States person” within the meaning
of Section 7701(a)(30) of the Internal Revenue Code becomes a party hereto, such
Lender shall deliver to the Borrower and the Agent such certificates, documents
or other evidence, as required by the Internal Revenue Code or Treasury
Regulations issued pursuant thereto (including Internal Revenue Service
Forms W-8ECI and W-8BEN, as applicable, or appropriate successor forms or
such other evidence satisfactory to the Agent and the Borrower), properly
completed, currently effective and duly executed by such Lender or Participant
establishing that payments to it hereunder and under the Notes are (i) not
subject to United States

    
      
         

      

      
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    Federal
backup withholding tax and (ii) not subject to United States Federal
withholding tax under the Internal Revenue Code.  Each such Lender
shall (x) deliver further copies of such forms or other appropriate
certifications on or before the date that any such forms expire or become
obsolete and after the occurrence of any event requiring a change in the most
recent form delivered to the Borrower and (y) obtain such extensions of the
time for filing, and renew such forms and certifications thereof, as may be
reasonably requested by the Borrower or the Agent.  The Borrower shall
not be required to pay any amount pursuant to last sentence of subsection (a)
above or pursuant to subsection (b) above to any Lender (or the Agent) that is
not a “United States person” within the meaning of Section 7701(a)(30) of the
Internal Revenue Code if such Lender or the Agent, as applicable, fails to
comply with the requirements of this subsection.  If any such Lender
fails to deliver the above forms or other documentation, then the Agent may
withhold from such payment to such Lender such amounts as are required by the
Internal Revenue Code, and such withheld amounts shall be deemed to have been
paid to such Lender. Each Lender that is a “United States person” within the
meaning of Section 7701(a)(30) of the Internal Revenue Code shall deliver to the
Agent two duly signed completed copies of IRS Form W-9 establishing that
payments to it hereunder and under the Notes are not subject to United States
Federal backup withholding tax.  If such Lender fails to deliver such
forms, then the Agent may withhold from any interest payment to such Lender an
amount equivalent to the applicable backup withholding tax imposed by the Code,
without reduction; such withheld amounts shall be deemed to have been paid to
the relevant Lender, and the Borrower shall not be required to pay any amount
pursuant to Section 3.11.(a) or (b).  If any Governmental Authority
asserts that the Agent did not properly withhold or backup withhold, as the case
may be, any tax or other amount from payments made to or for the account of any
Lender, such Lender shall indemnify the Agent therefor, including all penalties
and interest, any taxes imposed by any jurisdiction on the amounts payable to
the Agent under this Section, and costs and expenses (including all fees and
disbursements of any law firm or other external counsel and the allocated cost
of internal legal services and all disbursements of internal counsel) of the
Agent.  The obligation of the Lenders under this Section shall survive
the termination of the Commitments, repayment of all Obligations and the
resignation or replacement of the Agent.

    

    (d)           If
the Borrower determines in good faith that a reasonable basis exists for
contesting any Taxes for which indemnification has been demanded hereunder, the
relevant Lender or the Agent, as applicable, shall cooperate with the Borrower
in challenging such Taxes at the Borrower’s expense if so requested by the
Borrower in writing.  If any Lender or the Agent, as applicable,
receives a refund of a Tax for which a payment has been made by the Borrower
pursuant to this Section 3.11.(d), which refund is attributable to such payment
made by the Borrower, then the Lender or the Agent, as the case may be, shall
reimburse the Borrower for such.  Nothing herein contained shall
interfere with the right of a Lender or the Agent to arrange its tax affairs in
whatever manner it thinks fit nor oblige any Lender or the Agent to disclose any
information relating to its tax affairs or any computations in respect thereof
or require any Lender or the Agent to do anything that would prejudice its
ability to benefit from any other reliefs, remissions or repayments to which it
may be entitled.

    
      
         

      

      
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    Article
IV. Unencumbered Pool Properties

     

    Section
4.1.  Eligibility of Properties.

     

    (a)           Existing Unencumbered Pool
Properties.  Subject to compliance with the terms and
conditions of Section 6.1.(a), as of the Effective Date the parties hereto
acknowledge and agree that the Properties listed on Schedule 4.1. are
Unencumbered Pool Properties as of March 31, 2008.

    

    (b)           Additional Unencumbered Pool
Properties.  After the Effective Date, an Eligible Property
shall be included as Unencumbered Pool Property upon delivery to the Agent of an
Unencumbered Pool Certificate pursuant to Section 9.4.(d). setting forth
the information required to be contained therein and assuming that such Eligible
Property is included as an Unencumbered Pool Property.  Subject to the
terms and conditions of this Agreement, upon the Agent’s receipt of such
certificate, such Eligible Property shall be included as an Unencumbered Pool
Property.

    

    (c)           Alternative Acceptance
Procedure for Additional Unencumbered Pool Properties.  Any
Property that does not satisfy all of the requirements of an Eligible Property
shall be included only upon the written approval of the Requisite Lenders
provided, however, that such approval shall only be a waiver of those
requirements in the definition of Eligible Property specifically set forth and
approved therein with respect to such Property.

    

    
      Section
4.2.  Termination of Designation as Unencumbered Pool
Property.

    

     

    A Property shall cease to be included
as an Unencumbered Pool Property for purposes of this Agreement if either
(i) such Unencumbered Pool Property ceases to be an Eligible Property (with
the termination effective immediately) or (ii) such Property is noted to
have been removed as an Unencumbered Pool Property in an Unencumbered Pool
Certificate subsequently submitted pursuant to this Agreement (with the
termination effective as of the date of receipt by the Agent of such
Unencumbered Pool Certificate).  Notwithstanding the foregoing, no
Property will be terminated as an Unencumbered Pool Property if (i) a
Default or Event of Default exists or (ii) a Default or Event of Default
would exist immediately after such Property is terminated as an Unencumbered
Pool Property.

    

    Article
V. Yield Protection, Etc.

     

    
      Section 5.1.  Additional
Costs; Capital Adequacy.

    

     

    (a)           Capital
Adequacy.  If any Lender or any Participant determines that
compliance with any law or regulation or with any guideline or request from any
central bank or other Governmental Authority (whether or not having the force of
law) affects or would affect the amount of capital required or expected to be
maintained by such Lender or such Participant, or any corporation controlling
such Lender or such Participant, as a consequence of, or with reference to, such
Lender’s or such Participant’s or such corporation’s Commitments or its making
or maintaining Loans below the rate which such Lender or such Participant or
such corporation controlling such Lender or such Participant could have achieved
but for such 

      
        
           

        

        
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    compliance
(taking into account the policies of such Lender or such Participant or such
corporation with regard to capital), then the Borrower shall, from time to time,
within thirty (30) calendar days after written demand by such Lender or such
Participant, pay to such Lender or such Participant additional amounts
sufficient to compensate such Lender or such Participant or such corporation
controlling such Lender or such Participant to the extent that such Lender or
such Participant determines such increase in capital is allocable to such
Lender’s or such Participant’s obligations hereunder.  Such Lender or
such Participant shall deliver to the Borrower, pursuant to
Section 5.1.(d), a written statement, setting forth the basis for the
request for such additional amounts under this
Section 5.1.(a).

    

    (b)           Additional
Costs.  In addition to, and not in limitation of the
immediately preceding clause (a), the Borrower shall promptly pay to the Agent
for the account of a Lender from time to time such amounts as such Lender may
determine to be necessary to compensate such Lender for any costs incurred by
such Lender that it reasonably determines are attributable to its making or
maintaining of any Swingline Loans, any LIBOR Loans or any LIBOR Margin Loans or
its obligation to make any Swingline Loans, LIBOR Loans or LIBOR Margin Loans
hereunder, any reduction in any amount receivable by such Lender under this
Agreement or any of the other Loan Documents in respect of any of such Swingline
Loans, LIBOR Loans or LIBOR Margin Loans or such obligation or the maintenance
by such Lender of capital in respect of its Swingline Loans, LIBOR Loans or
LIBOR Margin Loans or its Commitment (such increases in costs and reductions in
amounts receivable being herein called “Additional Costs”), resulting from any
Regulatory Change that:  (i) changes the basis of taxation of any
amounts payable to such Lender under this Agreement or any of the other Loan
Documents in respect of any of such Swingline Loans, LIBOR Loans or LIBOR Margin
Loans or its Commitment (other than taxes imposed on or measured by the overall
net income of such Lender or of its Lending Office for any of such Swingline
Loans, LIBOR Loans or LIBOR Margin Loans by the jurisdiction in which such
Lender has its principal office or such Lending Office), or (ii) imposes or
modifies any reserve, special deposit or similar requirements (including without
limitation, Regulation D of the Board of Governors of the Federal Reserve
System or other similar reserve requirement applicable to any other category of
liabilities or category of extensions of credit or other assets by reference to
which the interest rate on Swingline Loans, LIBOR Loans or LIBOR Margin Loans is
determined) relating to any extensions of credit or other assets of, or any
deposits with or other liabilities of, or other credit extended by, or any other
acquisition of funds by such Lender (or its parent corporation), or any
commitment of such Lender (including, without limitation, the Commitment of such
Lender hereunder) or (iii) has or would have the effect of reducing the
rate of return on capital of such Lender to a level below that which such Lender
could have achieved but for such Regulatory Change (taking into consideration
such Lender’s policies with respect to capital adequacy).

    

    (c)           Lender’s Suspension of
Swingline Loans, LIBOR Loans and LIBOR Margin Loans.  Without
limiting the effect of the provisions of the immediately preceding subsections
(a) and (b), if by reason of any Regulatory Change, any Lender either
(i) incurs Additional Costs based on or measured by the excess above a
specified level of the amount of a category of deposits or other liabilities of
such Lender that includes deposits by reference to which the interest rate on
Swingline Loans, LIBOR Loans or LIBOR Margin Loans is determined as provided in
this Agreement or a category of extensions of credit or other assets of such
Lender

    
      
         

      

      
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    that
includes Swingline Loans, LIBOR Loans or LIBOR Margin Loans or (ii) becomes
subject to restrictions on the amount of such a category of liabilities or
assets that it may hold, then, if such Lender so elects by notice to the
Borrower (with a copy to the Agent), the obligation of such Lender to make or
Continue, or to Convert Base Rate Loans into, LIBOR Loans, the obligations of
the Swingline Lender to make Swingline Loans and/or the obligations of a Lender
that has outstanding a Bid Rate Quote to make LIBOR Margin Loans hereunder shall
be suspended until such Regulatory Change ceases to be in effect (in which case
the provision of Section 5.5. shall apply).

    

    (d)           Notification and
Determination of Additional Costs.  Each of the Agent and each
Lender, as the case may be, agrees to notify the Borrower of any event occurring
after the Agreement Date entitling the Agent or such Lender to compensation
under any of the preceding subsections of this Section as promptly as
practicable; provided, however, that the failure of the Agent or any Lender to
give such notice shall not release the Borrower from any of its obligations
hereunder.  The Agent and each Lender, as the case may be, agrees to
furnish to the Borrower (and in the case of a Lender to the Agent as well) a
certificate setting forth the basis and amount of each request for compensation
under this Section.  Determinations by the Agent or such Lender, as
the case may be, of the effect of any Regulatory Change shall be conclusive,
provided that such determinations are made on a reasonable basis and in good
faith.

    

    Notwithstanding
anything to the contrary contained in any of the preceding subsections of this
Section 5.1., the Borrower shall not be required to compensate any Lender
or Participant for any such increased costs or reduced return incurred by such
Lender or Participant more than six (6) months prior to such Lender’s or
Participant’s written request to the Borrower for such
compensation.

    

    
      Section 5.2.  Suspension
of Swingline Loans, LIBOR Loans and LIBOR Margin Loans.

    

     

    Anything herein to the contrary
notwithstanding, if, on or prior to the determination of LIBOR or Swingline
LIBOR for any Interest Period:

    

    (a)           the
Agent reasonably determines (which determination shall be conclusive) that
quotations of interest rates for the relevant deposits referred to in the
definition of LIBOR or Swingline LIBOR are not being provided in the relevant
amounts or for the relevant maturities for purposes of determining rates of
interest for LIBOR Loans or Swingline Loans as provided herein or is otherwise
unable to determine LIBOR or Swingline LIBOR, or

    

    (b)           the
Agent reasonably determines (which determination shall be conclusive) that the
relevant rates of interest referred to in the definition of LIBOR or Swingline
LIBOR upon the basis of which the rate of interest for LIBOR Loans or Swingline
Loans for such Interest Period is to be determined are not likely to adequately
cover the cost to any Lender of making or maintaining LIBOR Loans, or the cost
to the Swingline Lender of making Swingline Loans, for such Interest Period;
or

    

    (c)           any
Lender that has outstanding a Bid Rate Quote with respect to a LIBOR Margin Loan
reasonably determines (which determination shall be conclusive)

    
      
         

      

      
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    that
LIBOR will not adequately and fairly reflect the cost to such Lender of making
or maintaining such LIBOR Margin Loan;

    

    then
the Agent shall give the Borrower and each Lender prompt notice thereof and, so
long as such condition remains in effect, (i) the Lenders shall be under no
obligation to, and shall not, make additional LIBOR Loans, Continue LIBOR Loans
or Convert Loans into LIBOR Loans, the Swingline Lender shall be under no
obligation to, and shall not, make additional Swingline Loans, and the Borrower
shall, on the last day of each current Interest Period for each outstanding
LIBOR Loan, either prepay such Loan or Convert such Loan into a Base Rate Loan
and (ii) in the case of clause (c) above, no Lender that has outstanding a
Bid Rate Quote with respect to a LIBOR Margin Loan shall be under any obligation
to make such Loan.

    

    
      Section 5.3.  Illegality.

    

     

    Notwithstanding any other provision of
this Agreement, (a) if any Lender shall determine (which determination shall be
conclusive and binding) that it is unlawful for such Lender to honor its
obligation to make or maintain LIBOR Loans hereunder, (b) if the Swingline
Lender shall determine (which determination shall be conclusive and binding)
that it is unlawful for it to honor its obligation to make or maintain Swingline
Loans hereunder and/or (c) if any Lender that has an outstanding Bid Rate Quote
shall determine (which determination shall be conclusive and binding) that it is
unlawful for such Lender to honor its obligation to make or maintain LIBOR
Margin Loans hereunder, then such Lender shall promptly notify the Borrower
thereof (with a copy of such notice to the Agent) and such Lender’s obligation
to make or Continue, or to Convert Revolving Loans of any other Type into, LIBOR
Loans shall be suspended, the obligation of the Swingline Lender to make
Swingline Loans shall be suspended and/or such Lender’s obligation to make LIBOR
Margin Loans shall be suspended, in each case, until such time as such Lender
may again make and maintain LIBOR Loans, Swingline Loans or LIBOR Margin Loans,
as the case may be (in which case the provisions of Section 5.5. shall be
applicable).

    

    
      Section 5.4.  Compensation.

    

     

    The Borrower shall pay to the Agent for
account of each Lender, upon the request of such Lender through the Agent, such
amount or amounts as shall be sufficient to compensate such Lender for any loss,
cost or expense that the Agent reasonably determines is attributable
to:

    

    (a)           any
payment or prepayment (whether mandatory or optional) of a LIBOR Loan, LIBOR
Margin Loan or Swingline Loan or Conversion of a LIBOR Loan or LIBOR Margin
Loan, made by such Lender for any reason (including, without limitation,
acceleration) on a date other than the last day of the Interest Period for such
Loan; or

    

    (b)           any
failure by the Borrower for any reason (including, without limitation, the
failure of any of the applicable conditions precedent specified in Article VI.
to be satisfied) to borrow a LIBOR Loan, Swingline Loan or LIBOR Margin Loan
from such Lender on the date for such borrowing, or to Convert a Base Rate Loan
into a LIBOR Loan or Continue a LIBOR Loan on the requested date of such
Conversion or Continuation.

    
      
         

      

      
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    Not
in limitation of the foregoing, such compensation shall include, without
limitation; (i) in the case of a LIBOR Loan, LIBOR Margin Loan or Swingline
Loan, an amount equal to the then present value of (A) the amount of
interest that would have accrued on such LIBOR Loan, LIBOR Margin Loan or
Swingline Loan for the remainder of the Interest Period at the rate applicable
to such LIBOR Loan, LIBOR Margin Loan or Swingline Loan, less (B) the
amount of interest that would accrue on the same LIBOR Loan, LIBOR Margin Loan
or Swingline Loan for the same period if LIBOR or Swingline LIBOR were set on
the date on which such LIBOR Loan, LIBOR Margin Loan or Swingline Loan was
repaid, prepaid or Converted or the date on which the Borrower failed to borrow,
Convert or Continue such LIBOR Loan, LIBOR Margin Loan or Swingline Loan, as
applicable, calculating present value by using as a discount rate LIBOR or
Swingline LIBOR, as the case may be, quoted on such date and (ii) in the
case of a Bid Rate Loan, the sum of such losses and expenses as the Lender or
Designated Lender who made such Bid Rate Loan may reasonably incur by reason of
such pre­payment, including without limitation any losses or expenses
incurred in obtaining, liquidating or employing deposits from third
parties.   Upon Borrower’s request, the Agent will provide to the
Borrower, on behalf of any Lender seeking compensation under this Section, a
statement setting forth in reasonable detail the basis for requesting such
compensation and the method for determining the amount thereof.  Any
such statement shall be conclusive absent manifest error.

    

    
      Section 5.5.  Treatment
of Affected Loans.

    

     

    (a)           If
the obligation of any Lender to make LIBOR Loans or to Continue, or to Convert
Base Rate Loans into, LIBOR Loans shall be suspended pursuant to
Section 5.1.(c), 5.2. or 5.3. then such Lender’s LIBOR Loans shall be
automatically Converted into Base Rate Loans on the last day(s) of the then
current Interest Period(s) for LIBOR Loans (or, in the case of a Conversion
required by Section 5.1.(c) or 5.2. on such earlier date as such Lender may
specify to the Borrower with a copy to the Agent) and, unless and until such
Lender gives notice as provided below that the circumstances specified in
Section 5.1.(c), 5.2. or 5.3. that gave rise to such Conversion no longer
exist:

    

    (i)           to
the extent that such Lender’s LIBOR Loans have been so Converted, all payments
and prepayments of principal that would otherwise be applied to such Lender’s
LIBOR Loans shall be applied instead to its Base Rate Loans; and

    

    (ii)           all
Revolving Loans that would otherwise be made or Continued by such Lender as
LIBOR Loans shall be made or Continued instead as Base Rate Loans, and all Base
Rate Loans of such Lender that would otherwise be Converted into LIBOR Loans
shall remain as Base Rate Loans.

    

    If
such Lender gives notice to the Borrower (with a copy to the Agent) that the
circumstances specified in Section 5.1. or 5.3. that gave rise to the
Conversion of such Lender’s LIBOR Loans pursuant to this Section no longer exist
(which such Lender agrees to do promptly upon such circumstances ceasing to
exist) at a time when LIBOR Loans made by other Lenders are outstanding, then
such Lender’s Base Rate Loans shall be automatically Converted, on the first
day(s) of the next succeeding Interest Period(s) for such outstanding LIBOR
Loans, to the extent necessary so that, after giving effect thereto, all Loans
held by the Lenders holding

    
      
         

      

      
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    LIBOR
Loans and by such Lender are held pro rata (as to principal amounts, Types and
Interest Periods) in accordance with their respective Commitments.

    

    (b)           If
the obligation of the Swingline Lender to make Swingline Loans shall be
suspended pursuant to Section 5.1.(c) or 5.2. then the Swingline Loans
shall be automatically due and payable on such date as such Lender may specify
to the Borrower with a copy to the Agent and, unless and until the Swingline
Lender gives notice that the circumstances specified in Section 5.1.(c) or
5.2. which gave rise to such suspension no longer exist, the Swingline Lender
shall not be obligated to make Swingline Loans.

    

    (c)           If
the obligation of a Lender to make LIBOR Margin Loans shall be suspended
pursuant to Section 5.1.(c) or 5.2. then the LIBOR Margin Loans of such
Lender shall be automatically due and payable on such date as such Lender may
specify to the Borrower with a copy to the Agent.

    

    
      Section 5.6.  Change
of Lending Office.

    

     

    Each Lender agrees that it will use
reasonable efforts (consistent with its internal policy and legal and regulatory
restrictions) to designate an alternate Lending Office or take other measures
with respect to any of its Loans affected by the matters or circumstances
described in Sections 3.11., 5.1. or 5.3. to reduce the liability of the
Borrower or avoid the results provided thereunder, so long as such designation
is not disadvantageous to such Lender as determined by such Lender in its sole
discretion, except that such Lender shall have no obligation to designate a
Lending Office located in the United States of America.

    

    
      Section 5.7.  Affected
Lenders.

    

     

    If (a) a Lender (other than the
Swingline Lender) requests compensation pursuant to Section 3.11. or 5.1., and
the Requisite Lenders are not also doing the same, or (b) the obligation of
any Lender to make LIBOR Loans or to Continue, or to Convert Base Rate Loans
into LIBOR Loans shall be suspended pursuant to Section 5.1., 5.2. or 5.3. but
the obligation of the Requisite Lenders shall not have been suspended under such
Sections, then, so long as there does not then exist any Default or Event of
Default, the Borrower may either (i) demand that such Lender (the “Affected
Lender”), and upon such demand the Affected Lender shall promptly assign its
Commitments to an Eligible Assignee subject to and in accordance with the
provisions of Section 13.6.(c) for a purchase price equal to the aggregate
principal balance of Loans then owing to the Affected Lender plus any accrued
but unpaid interest thereon and accrued but unpaid fees owing to the Affected
Lender or (ii) pay to the Affected Lender the aggregate principal balance
of the Loans then owing to the Affected Lender plus any accrued but unpaid
interest thereon and accrued but unpaid fees owing to the Affected Lender,
whereupon the Affected Lender shall no longer be a party hereto or have any
rights or obligations hereunder or under any of the other Loan
Documents.  Each of the Agent, the Borrower and the Affected Lender
shall reasonably cooperate in effectuating the replacement of such Affected
Lender under this Section, but at no time shall the Agent, such Affected Lender
nor any other Lender be obligated in any way whatsoever to initiate any such
replacement or to assist in finding an Eligible Assignee.  The
exercise by the Borrower of its rights under this Section shall be at the
Borrower’s sole cost and expense and at no cost or expense to the Agent, the
Affected Lender or

    
      
         

      

      
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    any
of the other Lenders; provided, however, the Borrower shall not be obligated to
reimburse or otherwise pay an Affected Lender’s administrative or legal costs
incurred as a result of the Borrower’s exercise of its rights under this
Section.  The terms of this Section shall not in any way limit the
Borrower’s obligation to pay to any Affected Lender compensation owing to such
Affected Lender pursuant to Section 3.11. or 5.1.

    

    
      Section 5.8.  Assumptions
Concerning Funding of LIBOR Loans, LIBOR Margin Loans and Swingline
Loans.

    

     

    Calculation of all amounts payable to a
Lender under this Article V. shall be made as though such Lender had
actually funded LIBOR Loans, LIBOR Margin Loans or Swingline Loans through the
purchase of deposits in the relevant market bearing interest at the rate
applicable to such LIBOR Loans, LIBOR Margin Loans or Swingline Loans, in an
amount equal to the amount of the LIBOR Loans, LIBOR Margin Loans or Swingline
Loans and having a maturity comparable to the relevant Interest Period;
provided, however, that each Lender may fund each of its LIBOR Loans and LIBOR
Margin Loans and the Swingline Lender may fund the Swingline Loans in any manner
it sees fit and the foregoing assumption shall be used only for calculation of
amounts payable under this Article V.

    

    Article
VI. Conditions Precedent

     

    
      Section 6.1.  Initial
Conditions Precedent.

    

     

    The Effective Date will occur upon
satisfaction or waiver of the following conditions precedent:

    

    (a)           The
Agent shall have received each of the following, in form and substance
satisfactory to the Agent:

    

    (i)           counterparts
of this Agreement executed by each of the parties hereto;

    

    (ii)           Revolving
Notes and Bid Rate Notes executed by the Borrower, payable to all Lenders or any
Designated Lender, if applicable, and complying with the terms of
Section 2.11.; and the Swingline Note executed by the
Borrower;

    

    (iii)           the
Guaranty executed by each of the Guarantors initially to be a party
thereto;

    

    (iv)           (A) an
opinion of Latham & Watkins LLP, counsel to the Borrower and the Guarantors,
addressed to the Agent and the Lenders and covering the matters set forth in
Exhibit N-1, (B) an opinion of Venable LLP, special Maryland counsel to the
Borrower, addressed to the Agent and the Lenders and covering the matters set
forth in Exhibit N-2, and (C) an opinion of the Borrower’s general counsel
addressed to the Agent and the Lenders and covering the matters set forth in
Exhibit N-3;

    

    (v)           the
certificate or articles of incorporation, articles of organization, certificate
of limited partnership, declaration of trust or other comparable
organizational

    
      
         

      

      
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    instrument
(if any) of each Loan Party certified as of a recent date by the Secretary of
State of the state of formation of such Person;

    

    (vi)           a
certificate of good standing (or certificate of similar meaning) with respect to
each Loan Party issued as of a recent date by the Secretary of State of the
state of formation of each such Person;

    

    (vii)           a
certificate of incumbency signed by the Secretary or Assistant Secretary (or
other individual performing similar functions) of each Loan Party with respect
to each of the officers of such Person authorized to execute and deliver the
Loan Documents to which such Person is a party, and in the case of the Borrower,
authorized to execute and deliver on behalf of the Borrower Notices of
Borrowing, Notices of Swingline Borrowing, Notices of Conversion and Notices of
Continuation;

    

    (viii)          copies
certified by the Secretary or Assistant Secretary of each Guarantor (or other
individual performing similar functions) of (i) the by-laws of such Person,
if a corporation, the operating agreement, if a limited liability company, the
partnership agreement, if a limited or general partnership, or other comparable
document in the case of any other form of legal entity and (ii) all
corporate, partnership, member or other necessary action taken by such Person to
authorize the execution, delivery and performance of the Loan Documents to which
it is a party;

    

    (ix)           an
Unencumbered Pool Certificate calculated as of March 31, 2008;

    

    (x)           
a Compliance Certificate calculated on a pro forma basis for the Borrower’s
fiscal quarter ending March 31, 2008;

    

    (xi)           a
Closing Certificate substantially in form of Exhibit R, executed on behalf of
the Borrower by an authorized officer of the Borrower;

    

    (xii)          a
Transfer Authorizer Designation Form effective as of the Agreement
Date;

    

    (xiii)          evidence
satisfactory to the Agent that the Fees, if any, then due and payable under
Section 3.6., together with all other fees, expenses and reimbursement
amounts due and payable to the Agent and any of the Lenders, including without
limitation, the fees and expenses of counsel to the Agent, have been
paid;

    

    (xiv)          evidence
satisfactory to the Agent that upon funding of the Loans requested on the
Effective Date all amounts owing under the Existing Credit Agreement, including
without limitation all principal, interest and fees, will be repaid in full;
and

    

    (xv)           such
other documents and instruments as the Agent, or any Lender through the Agent,
may reasonably request; and

    

    (b)           In
the good faith judgment of the Agent:

    
      
         

      

      
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    (i)           There
shall not have occurred or become known to the Agent or any of the Lenders any
event, condition, situation or status since the date of the information
contained in the financial and business projections, budgets, pro forma data and
forecasts concerning the Borrower and its Subsidiaries delivered to the Agent
and the Lenders prior to the Agreement Date that has had or could reasonably be
expected to result in a Material Adverse Effect;

    

    (ii)           No
litigation, action, suit, investigation or other arbitral, administrative or
judicial proceeding shall be pending or threatened which is reasonably likely to
be adversely determined, and, if adversely determined, could reasonably be
expected to (A) result in a Material Adverse Effect or (B) restrain or
enjoin, impose materially burdensome conditions on, or otherwise materially and
adversely affect, the ability of any Loan Party to fulfill its obligations under
the Loan Documents to which it is a party;

    

    (iii)           The
Borrower and the other Loan Parties shall have received all approvals, consents
and waivers, and shall have made or given all necessary filings and notices as
shall be required to consummate the transactions contemplated hereby without the
occurrence of any default under, conflict with or violation of (A) any
Applicable Law or (B) any agreement, document or instrument to which any
Loan Party is a party or by which any of them or their respective properties is
bound, except for such approvals, consents, waivers, filings and notices the
receipt, making or giving of which, or the failure to make, give or receive
which, would not reasonably be likely to (1) have a Material Adverse
Effect, or (2) restrain or enjoin, impose materially burdensome conditions
on, or otherwise materially and adversely affect the ability of the Borrower or
any other Loan Party to fulfill its obligations under the Loan Documents to
which it is a party; and

    

    (iv)           There
shall not have occurred or exist any other material disruption of financial or
capital markets that could reasonably be expected to materially and adversely
affect the transactions contemplated by the Loan Documents.

    

    
      Section 6.2.  Conditions
Precedent to All Loans.

    

     

    The obligations of Lenders to make any
Loans are subject to the further conditions precedent that: (a) no Default
or Event of Default shall exist as of the date of the making of such Loan or
would exist immediately after giving effect thereto, and none of the conditions
described in Section 2.14. would exist after giving effect thereto; (b) the
representations and warranties made or deemed made by the Borrower and each
other Loan Party in the Loan Documents to which any of them is a party, shall be
true and correct in all material respects (except to the extent otherwise
qualified by materiality) on and as of the date of the making of such Loan with
the same force and effect as if made on and as of such date except to the extent
that such representations and warranties expressly relate solely to an earlier
date (in which case such representations and warranties shall have been true and
accurate in all material respects (except to the extent otherwise qualified by
materiality) on and as of such earlier date) and except for changes in factual
circumstances specifically and expressly permitted hereunder and (c) in the
case of the borrowing of Revolving Loans, the Agent shall have received a timely
Notice of

    
      
         

      

      
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    Borrowing,
or in the case of a Swingline Loan, the Swingline Lender shall have received a
timely Notice of Swingline Borrowing.  Each Credit Event shall
constitute a certification by the Borrower to the effect set forth in the
preceding sentence (both as of the date of the giving of notice relating to such
Credit Event and, unless the Borrower otherwise notifies the Agent prior to the
date of such Credit Event, as of the date of the occurrence of such Credit
Event).  In addition, the Borrower shall be deemed to have represented
to the Agent and the Lenders at the time such Loan is made that all conditions
to the making of such Loan contained in this Article VI. have been
satisfied.

    

    
      Section 6.3.  Conditions
as Covenants.

    

     

    If the Lenders permit the making of any
Loans, prior to the satisfaction of all conditions precedent set forth in
Sections 6.1. and 6.2., the Borrower shall nevertheless cause such
condition or conditions to be satisfied within 5 Business Days after the date of
the making of such Loans.  Unless set forth in writing to the
contrary, the making of its initial Loan by a Lender shall constitute a
confirmation by such Lender to the Agent and the other Lenders that insofar as
such Lender is concerned the Borrower has satisfied the conditions precedent for
initial Loans set forth in Sections 6.1. and 6.2.

    

    Article
VII. Representations and Warranties

     

    
      Section 7.1.  Representations
and Warranties.

    

     

    In order to induce the Agent and each
Lender to enter into this Agreement and to make Loans, the Borrower represents
and warrants to the Agent and each Lender as follows:

    

    (a)           Organization; Power;
Qualification.  Each of the Loan Parties and the other
Subsidiaries is a corporation, partnership or other legal entity, duly organized
or formed, validly existing and in good standing under the jurisdiction of its
incorporation or formation, has the power and authority to own or lease its
respective properties and to carry on its respective business as now being and
hereafter proposed to be conducted and is duly qualified and is in good standing
as a foreign corporation, partnership or other legal entity, and authorized to
do business, in each jurisdiction in which the character of its properties or
the nature of its business requires such qualification or authorization and
where the failure to be so qualified or authorized could reasonably be expected
to have, in each instance, a Material Adverse Effect.

    

    (b)           Ownership
Structure.  Part I of Schedule 7.1.(b) is, as of the
Agreement Date, a complete and correct list of all Subsidiaries of the Borrower
setting forth for each such Subsidiary, (i) the jurisdiction of
organization of such Person, (ii) each Person holding any Equity Interest
in such Person, (iii) the nature of the Equity Interests held by each such
Person and (iv) the percentage of ownership of such Person represented by
such Equity Interests.  Except as disclosed in such Schedule
(A) each of the Borrower and its Subsidiaries owns, free and clear of all
Liens, and has the unencumbered right to vote, all outstanding Equity Interests
in each Person shown to be held by it on such Schedule, (B) all of the
issued and outstanding capital stock of each such Person organized as a
corporation is validly issued, fully paid and nonassessable and (C) there
are no outstanding subscriptions, options, warrants, commitments, preemptive
rights or agreements of any kind (including, without limitation, any
stockholders’ or

    
      
         

      

      
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    voting
trust agreements) for the issuance, sale, registration or voting of, or
outstanding securities convertible into, any additional shares of capital stock
of any class, or partnership or other ownership interests of any type in, any
such Person.  Part II of Schedule 7.1.(b) correctly sets forth,
as of the Agreement Date, all Unconsolidated Affiliates of the Borrower,
including the correct legal name of such Person, the type of legal entity which
each such Person is, and all ownership interests in such Person held directly or
indirectly by the Borrower.

    

    (c)           Authorization of Agreement,
Notes, Loan Documents and Borrowings.  The Borrower has the
right and power, and has taken all necessary corporate action to authorize it,
to borrow.  The Borrower and each other Loan Party has the right to
obtain other extensions of credit hereunder, and has taken all necessary action
to authorize it, to execute, deliver and perform each of the Loan Documents to
which it is a party in accordance with their respective terms and to consummate
the transactions contemplated hereby and thereby.  The Loan Documents
to which the Borrower or any other Loan Party is a party have been duly executed
and delivered by the duly authorized officers of such Person and each is a
legal, valid and binding obligation of such Person enforceable against such
Person in accordance with its respective terms, except as the same may be
limited by bankruptcy, insolvency, and other similar laws affecting the rights
of creditors generally and the availability of equitable remedies for the
enforcement of certain obligations contained herein or therein may be limited by
equitable principles generally.

    

    (d)           Compliance of Agreement,
Etc. with Laws.  The execution, delivery and performance of
this Agreement and the other Loan Documents to which any Loan Party is a party
in accordance with their respective terms and the borrowings and other
extensions of credit hereunder do not and will not, by the passage of time, the
giving of notice, or both:  (i) require any Governmental Approval
or violate any Applicable Law (including all Environmental Laws) relating to any
Loan Party; (ii) conflict with, result in a breach of or constitute a
default under the articles of incorporation or the bylaws of the Borrower or the
organizational documents of any other Loan Party, or any material indenture,
agreement or other instrument to which any other Loan Party is a party or by
which it or any of its respective properties may be bound; or (iii) result
in or require the creation or imposition of any Lien upon or with respect to any
property now owned or hereafter acquired by any Loan Party other than in favor
of the Agent for the benefit of the Lenders.

    

    (e)           Compliance with Law;
Governmental Approvals.  Each Loan Party and each other
Subsidiary is in compliance with each Governmental Approval and all other
Applicable Laws relating to it except for noncompliances which, and Governmental
Approvals the failure to possess which, could not, individually or in the
aggregate, reasonably be expected to cause a Default or Event of Default or have
a Material Adverse Effect.

    

    (f)           Title to Properties;
Liens.  Schedule 7.1.(f) is, as of March 31, 2008, a complete
and correct listing of all real estate assets of the Loan Parties and the other
Subsidiaries, setting forth, for each such Property, the current occupancy
status of such Property and whether such Property is a Development Property and,
if such Property is a Development Property, the status of completion of such
Property.  Each of the Loan Parties and all other Subsidiaries has
good,

    
      
         

      

      
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    marketable
and legal title to, or a valid leasehold interest in, its respective
assets.  None of the Unencumbered Pool Properties is subject to any
Lien other than Permitted Liens.

    

    (g)           Existing Indebtedness; Total
Liabilities.  Part I of Schedule 7.1.(g) is, as of March
31, 2008, a complete and correct listing of all Indebtedness (including all
Guarantees) of each of the Loan Parties and the other Subsidiaries, and if such
Indebtedness is secured by any Lien, a description of all of the property
subject to such Lien. As of March 31, 2008, the Loan Parties and the other
Subsidiaries have performed and are in compliance with all of the terms of such
Indebtedness and all instruments and agreements relating thereto, and no default
or event of default, or event or condition which with the giving of notice, the
lapse of time, or both, would constitute a default or event of default, exists
with respect to any such Indebtedness.  Part II of
Schedule 7.1.(g) is, as of March 31, 2008, a complete and correct listing
of all Total Liabilities of the Loan Parties and the other Subsidiaries
(excluding any Indebtedness set forth on Part I of such Schedule).

    

    (h)           Material
Contracts.  Schedule 7.1.(h) is, as of the Agreement Date,
a true, correct and complete listing of all Material Contracts.  As of
the Agreement Date, each of the Loan Parties and the other Subsidiaries that are
parties to any Material Contract has performed and is in compliance with all of
the terms of such Material Contract, and no default or event of default, or
event or condition which with the giving of notice, the lapse of time, or both,
would constitute such a default or event of default, exists with respect to any
such Material Contract.

    

    (i)           Litigation.  Except
as set forth on Schedule 7.1.(i), there are no actions, suits or
proceedings pending (nor, to the knowledge of any Loan Party, are there any
actions, suits or proceedings threatened) against or in any other way relating
adversely to or affecting, any Loan Party, any other Subsidiary or any of their
respective property in any court or before any arbitrator of any kind or before
or by any other Governmental Authority which, is reasonably likely to be
adversely determined, and, if adversely determined, could reasonably be expected
to have a Material Adverse Effect, and there are no strikes, slow downs, work
stoppages or walkouts or other labor disputes in progress or threatened relating
to, any Loan Party or any other Subsidiary.

    

    (j)           Taxes.  All
federal, state and other tax returns of each Loan Party and each other
Subsidiary required by Applicable Law to be filed have been duly filed, and all
federal, state and other taxes, assessments and other governmental charges or
levies upon, each Loan Party and each other Subsidiary and their respective
properties, income, profits and assets which are due and payable have been paid,
except any such nonpayment or non-filing which is at the time permitted under
Section 8.6.  As of the Agreement Date, none of the United States
income tax returns of any Loan Party or any other Subsidiary is under
audit.  All charges, accruals and reserves on the books of the
Borrower and each of its Subsidiaries in respect of any taxes or other
governmental charges are in accordance with GAAP.

    

    (k)           Financial
Statements.  The Borrower has furnished to each Lender copies
of (i) the audited consolidated balance sheets of the Borrower as of
December 31, 2006 and December 31, 2007, and the related consolidated statements
of income and cash flow for the fiscal years ended on such dates, with the
opinion thereon of KPMG LLP, and (ii) the unaudited

    
      
         

      

      
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    consolidated
balance sheet of the Borrower for the fiscal quarter ended as of March 31, 2008,
and the related consolidated statements of income and cash flow of the Borrower
and its consolidated Subsidiaries for the two fiscal quarter period ended on
such date.  Such balance sheets and statements (including in each case
related schedules and notes) are complete and correct in all material respects
and present fairly, in accordance with GAAP consistently applied throughout the
periods involved, the consolidated financial position of the Borrower and its
consolidated Subsidiaries as at their respective dates and the results of
operations and the cash flow for such periods (subject, as to interim
statements, to changes resulting from normal year-end audit
adjustments).  Neither the Borrower nor any of its Subsidiaries has on
the Agreement Date any material contingent liabilities, liabilities, liabilities
for taxes, unusual or long-term commitments or unrealized or forward anticipated
losses from any unfavorable commitments, except as referred to or reflected or
provided for in said financial statements.

    

    (l)           No Material Adverse
Change.  Since December 31, 2007, there has been no material
adverse change in the consolidated financial condition, results of operations,
business or prospects of the Borrower and its consolidated Subsidiaries taken as
a whole.  Each of the Borrower, the other Loan Parties and the other
Subsidiaries is Solvent.

    

    (m)           ERISA.  Except
for instances as could not individually or in the aggregate reasonably be
expected to have a Material Adverse Effect, each member of the ERISA Group has
fulfilled its obligations under the minimum funding standards of ERISA and the
Internal Revenue Code with respect to each Plan and is in compliance in all
respects with the presently applicable provisions of ERISA and the Internal
Revenue Code with respect to each Plan.  No member of the ERISA Group
has (i) sought a waiver of the minimum funding standard under Section 412
of the Internal Revenue Code in respect of any Plan, (ii) failed to make
any contribution or payment to any Plan or Multiemployer Plan or in respect of
any Benefit Arrangement, or made any amendment to any Plan or Benefit
Arrangement, which has resulted or could result in the imposition of a Lien or
the posting of a bond or other security under ERISA or the Internal Revenue Code
or (iii) incurred any material liability under Title IV of ERISA other than
a liability to the PBGC for premiums under Section 4007 of ERISA.

    

    (n)           Absence of
Defaults.  None of the Loan Parties or the other Subsidiaries
is in default under its articles of incorporation, bylaws, partnership agreement
or other similar organizational documents, and no event has occurred, which has
not been remedied, cured or waived:  (i) which constitutes a
Default or an Event of Default; or (ii) which constitutes, or which with
the passage of time, the giving of notice, or both, would constitute, a default
or event of default by, any Loan Party or any other Subsidiary under any
agreement (other than this Agreement) or judgment, decree or order to which any
such Person is a party or by which any such Person or any of its respective
properties may be bound where such default or event of default could,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

    

    (o)           Environmental
Laws.  Except as set forth on Schedule 7.1(o), each of the Loan
Parties and the other Subsidiaries is in compliance with all applicable
Environmental Laws and has obtained all Governmental Approvals which are
required under Environmental Laws and is in compliance with all terms and
conditions of such Governmental Approvals, where with

    
      
         

      

      
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    respect
to each of the foregoing the failure to obtain or to comply with could be
reasonably expected to have a Material Adverse Effect.  Except for any
of the following matters that could not be reasonably expected to have a
Material Adverse Effect, no Loan Party is aware of, nor has it received notice
of, any past or present events, conditions, circumstances, activities,
practices, incidents, actions, or plans which, with respect to any Loan Party or
any other Subsidiary, may unreasonably interfere with or prevent compliance or
continued compliance with Environmental Laws, or may give rise to any common-law
or legal liability, based on or related to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport, or handling or the
emission, discharge, release or threatened release into the environment, of any
Hazardous Material; and there is no civil, criminal, or administrative action,
suit, demand, claim, hearing, notice, or demand letter, notice of violation,
investigation, or proceeding pending or, to the Borrower’s knowledge after due
inquiry, threatened, against any Loan Party or any other Subsidiary relating in
any way to Environmental Laws which, if determined adversely to such Loan Party
or such other Subsidiary, could be reasonably expected to have a Material
Adverse Effect.

    

    (p)           Investment Company;
Etc.  No Loan Party, nor any other Subsidiary is (i) an
“investment company” or a company “controlled” by an “investment company” within
the meaning of the Investment Company Act of 1940, as amended, or
(ii) subject to any other Applicable Law which purports to regulate or
restrict its ability to borrow money or obtain other extensions of credit or to
consummate the transactions contemplated by this Agreement or to perform its
obligations under any Loan Document to which it is a party.

    

    (q)           Margin
Stock.  No Loan Party nor any other Subsidiary is engaged
principally, or as one of its important activities, in the business of extending
credit for the purpose, whether immediate, incidental or ultimate, of buying or
carrying “margin stock” within the meaning of Regulation U of the Board of
Governors of the Federal Reserve System.

    

    (r)           Affiliate
Transactions.  Except as set forth on Schedule 7.1.(r). and as
permitted by Section 10.9., no Loan Party nor any other Subsidiary is a
party to or bound by any agreement or arrangement (whether oral or written) with
any Affiliate.

    

    (s)           Intellectual
Property.  Except for such instances as would not, individually
or in the aggregate, have a Material Adverse Effect:  (1) each of
the Loan Parties and each other Subsidiary owns or has the right to use, under
valid license agreements or otherwise, all patents, licenses, franchises,
trademarks, trademark rights, trade names, trade name rights, trade secrets and
copyrights (collectively, “Intellectual Property”) necessary to the conduct of
its businesses, without known conflict with any patent, license, franchise,
trademark, trade secret, trade name, copyright, or other proprietary right of
any other Person; (2) all such Intellectual Property is fully protected
and/or duly and properly registered, filed or issued in the appropriate office
and jurisdictions for such registrations, filing or issuances and (3) no
claim has been asserted by any Person with respect to the use of any such
Intellectual Property, or challenging or questioning the validity or
effectiveness of any such Intellectual Property.

    

    (t)           Business.  As
of the Agreement Date, the Loan Parties and the other Subsidiaries are engaged
primarily in the business of owning, funding the development of, operating,
buying,

    
      
         

      

      
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    selling
and managing completed retail properties leased to third party tenants
principally, but not exclusively, on a net lease basis.

    

    (u)           Broker’s
Fees.  No broker’s or finder’s fee, commission or similar
compensation will be payable with respect to the transactions contemplated
hereby.  No other similar fees or commissions will be payable by any
Loan Party for any other services rendered to any Loan Party or any other
Subsidiaries ancillary to the transactions contemplated hereby.

    

    (v)           Accuracy and Completeness of
Information.  All written information, reports and other papers
and data furnished to the Agent or any Lender by, on behalf of, or at the
direction of, any Loan Party or any other Subsidiary were, at the time the same
were so furnished, complete and correct in all material respects, to the extent
necessary to give the recipient a true and accurate knowledge of the subject
matter, or, in the case of financial statements, present fairly, in accordance
with GAAP consistently applied throughout the periods involved, the financial
position of the Persons involved as at the date thereof and the results of
operations for such periods.  No fact is known to any Loan Party which
has had, or may in the future have (so far as any Loan Party can reasonably
foresee), a Material Adverse Effect which has not been set forth in the
financial statements referred to in Section 7.1.(k) or in such information,
reports or other papers or data or otherwise disclosed in writing to the Agent
and the Lenders prior to the Agreement Date.   No document
furnished or written statement made to the Agent or any Lender in connection
with the negotiation, preparation or execution, or pursuant to, of this
Agreement or any of the other Loan Documents contains or will contain any untrue
statement of a fact material to the creditworthiness of any Loan Party or any
other Subsidiary or omits or will omit to state a material fact necessary in
order to make the statements contained therein not materially
misleading.

    

    (w)           Unencumbered Pool
Properties. Each of the Unencumbered Pool Properties qualifies as an
Eligible Property and each Subsidiary that owns an Unencumbered Pool Property is
a Guarantor.

    

    (x)           Not Plan Assets; No
Prohibited Transactions.  None of the assets of any Loan Party
or any other Subsidiary constitutes “plan assets” within the meaning of ERISA,
the Internal Revenue Code and the respective regulations promulgated thereunder,
of any Plan.  The execution, delivery and performance of the Loan
Documents by the Loan Parties, and the borrowing, other credit extensions and
repayment of amounts thereunder, do not and will not constitute “prohibited
transactions” under ERISA or the Internal Revenue Code.

    

    (y)           OFAC.  None
of the Borrower, any of the other Loan Parties, any of the other Subsidiaries,
or any other Affiliate of the Borrower: (i) is a Person named on the list of
Specially Designated Nationals or Blocked Persons maintained by the U.S.
Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) available
at http://www.treas.gov/offices/eotffc/ofac/sdn/index.html, or as otherwise
published from time to time; (ii) is (A) an agency of the government of a
country, (B) an organization controlled by a country, or (C) a Person resident
in a country that is subject to a sanctions program identified on the list
maintained by OFAC and available at
http://www.treas.gov/offices/eotffc/ofac/sanctions/index.html, or as otherwise
published from

    
      
         

      

      
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    time
to time, as such program may be applicable to such agency, organization or
Person; or (iii) derives any of its assets or operating income from investments
in or transactions with any such country, agency, organization or Person; and
none of the proceeds from any Loan will be used to finance any operations,
investments or activities in, or make any payments to, any such country, agency,
organization, or Person.

    

    
      Section 7.2.  Survival
of Representations and Warranties, Etc.

    

     

    All statements contained in any
certificate, financial statement or other instrument delivered by or on behalf
of any Loan Party or any other Subsidiary to the Agent or any Lender pursuant to
or in connection with this Agreement or any of the other Loan Documents
(including, but not limited to, any such statement made in any amendment thereto
or any statement contained in any certificate, financial statement or other
instrument delivered by or on behalf of any Loan Party prior to the Agreement
Date and delivered to the Agent or any Lender in connection with closing the
transactions contemplated hereby) shall constitute representations and
warranties made by the Borrower under this Agreement.  All
representations and warranties made under this Agreement and the other Loan
Documents shall be deemed to be made at and as of the Agreement Date, the
Effective Date and at and as of the date of the occurrence of each Credit Event,
except to the extent that such representations and warranties expressly relate
solely to an earlier date (in which case such representations and warranties
shall have been true and accurate on and as of such earlier date) and except for
changes in factual circumstances specifically permitted
hereunder.  All such representations and warranties shall survive the
effectiveness of this Agreement, the execution and delivery of the Loan
Documents and the making of the Loans.

    

    Article
VIII. Affirmative Covenants

     

    For so long as this Agreement is in
effect, unless the Requisite Lenders (or, if required pursuant to
Section 13.7., all of the Lenders) shall otherwise consent in the manner
provided for in Section 13.7., the Borrower shall comply with the following
covenants:

    

    
      Section 8.1.  Preservation
of Existence and Similar Matters.

    

     

    Except as otherwise permitted under
Section 10.4., the Borrower shall, and shall cause each other Loan Party
and each other Subsidiary to, preserve and maintain its respective existence,
rights, franchises, licenses and privileges in the jurisdiction of its
incorporation or formation and qualify and remain qualified and authorized to do
business in each jurisdiction in which the character of its properties or the
nature of its business requires such qualification and authorization and where
the failure to be so authorized and qualified could reasonably be expected to
have a Material Adverse Effect.

    

    
      Section 8.2.  Compliance
with Applicable Law.

    

     

    The Borrower shall, and shall cause
each other Loan Party and each other Subsidiary to, comply with all Applicable
Law, including the obtaining of all Governmental Approvals, the failure with
which to comply could reasonably be expected to have a Material Adverse
Effect.

    
      
         

      

      
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    Section 8.3.  Maintenance
of Property.

     

    In addition to the requirements of any
of the other Loan Documents, the Borrower shall, and shall cause each other Loan
Party and each other Subsidiary to, (a) protect and preserve all of its
material properties, including, but not limited to, all material Intellectual
Property necessary to the conduct of its respective business, and maintain in
good repair, working order and condition all tangible properties, ordinary wear
and tear excepted, and (b) from time to time make or cause to be made all
needed and appropriate repairs, renewals, replacements and additions to such
properties, so that the business carried on in connection therewith may be
properly and advantageously conducted at all times.

    

    
      Section 8.4.  Conduct
of Business.

    

     

    The Borrower shall, and shall cause the
other Loan Parties and each other Subsidiary to, carry on its respective
businesses as described in Section 7.1.(t) and not enter into any line of
business not otherwise engaged in by such Person as of the Agreement Date or not
otherwise reasonably related thereto.

    

    
      Section 8.5.  Insurance.

    

     

    The Borrower shall, and shall cause
each other Loan Party and each other Subsidiary to, maintain insurance with
financially sound and reputable insurance companies against such risks and in
such amounts as is customarily maintained by similar businesses or as may be
required by Applicable Law. The Borrower shall from time to time deliver to the
Agent upon request a detailed list, together with copies of all policies of the
insurance then in effect, stating the names of the insurance companies, the
amounts and rates of the insurance, the dates of the expiration thereof and the
properties and risks covered thereby.

    

    
      Section 8.6.  Payment
of Taxes and Claims.

    

     

    The Borrower shall, and shall cause
each other Loan Party and each other Subsidiary to, pay and discharge when due
(a) all taxes, assessments and governmental charges or levies imposed upon
it or upon its income or profits or upon any properties belonging to it, and
(b) all lawful claims of materialmen, mechanics, carriers, warehousemen and
landlords for labor, materials, supplies and rentals which, if unpaid, might
become a Lien on any properties of such Person; provided, however, that this
Section shall not require the payment or discharge of any such tax, assessment,
charge, levy or claim which is being contested in good faith by appropriate
proceedings which operate to suspend the collection thereof and for which
adequate reserves have been established on the books of such Person in
accordance with GAAP.

    

    
      Section 8.7.  Books
and Records; Inspections.

    

     

    The Borrower will, and will cause each
other Loan Party and each other Subsidiary to, keep proper books of record and
account in which full, true and correct entries shall be made of all dealings
and transactions in relation to its business and activities.  The
Borrower will, and will cause each other Loan Party and each other Subsidiary
to, permit representatives of the Agent or any Lender to visit and inspect any
of their respective properties, to examine and make abstracts

    
      
         

      

      
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    from
any of their respective books and records and to discuss their respective
affairs, finances and accounts with their respective officers, employees and
independent public accountants (in the Borrower’s presence), all at such
reasonable times during business hours and as often as may reasonably be
requested and with reasonable prior notice.  The Borrower shall be
obligated to reimburse the Agent and the Lenders for their reasonable costs and
expenses incurred in connection with the exercise of their rights under this
Section only if such exercise occurs while a Default or Event of Default
exists.

    

    
      Section 8.8.  Use
of Proceeds.

    

     

    The Borrower will only use the proceeds
of Loans only for (a) the payment of pre-development and development costs
incurred in connection with Properties owned by the Borrower or any Subsidiary;
(b) to finance acquisitions and equity investments otherwise permitted
under this Agreement; (c) to finance capital expenditures and the repayment
of Indebtedness of the Borrower and its Subsidiaries (including scheduled
amortization payments on Indebtedness); and (d) to provide for the general
working capital needs of the Borrower and its Subsidiaries and for other general
corporate purposes of the Borrower and its Subsidiaries (including distributions
and stock repurchases otherwise permitted under this
Agreement).  Except as permitted by Section 10.1.(g), the Borrower
shall not, and shall not permit any other Loan Party or any other Subsidiary to,
use any part of such proceeds to purchase or carry, or to reduce or retire or
refinance any credit incurred to purchase or carry, any margin stock (within the
meaning of Regulation U of the Board of Governors of the Federal Reserve
System) or to extend credit to others for the purpose of purchasing or carrying
any such margin stock.

    

    
      Section 8.9.  Environmental
Matters.

    

     

    The Borrower shall, and shall cause
each other Loan Party and each other Subsidiary to, comply with all
Environmental Laws the failure with which to comply could reasonably be expected
to have a Material Adverse Effect.  If any Loan Party or any other
Subsidiary shall (a) receive written notice that any violation of any
Environmental Law may have been committed or is about to be committed by such
Person, (b) receive written notice that any administrative or judicial
complaint or order has been filed or is about to be filed against any such
Person alleging violations of any Environmental Law or requiring any such Person
to take any action in connection with the release of Hazardous Materials or
(c) receive any written notice from a Governmental Authority or private
party alleging that any such Person may be liable or responsible for costs
associated with a response to or cleanup of a release of Hazardous Materials or
any damages caused thereby, and such notices, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect, the Borrower
shall provide the Agent with a copy of such notice within 10 days after the
receipt thereof by such Person or any of the Subsidiaries.  The Loan
Parties and the other Subsidiaries shall promptly take all actions necessary to
prevent the imposition of any Liens on any of their respective properties
arising out of or related to any Environmental Laws.

    

    
      Section 8.10.  Further
Assurances.

    

     

    At the Borrower’s cost and expense and
upon request of the Agent, the Borrower shall, and shall cause each other Loan
Party and each other Subsidiary to, duly execute and deliver or 

      
        
           

        

        
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    cause
to be duly executed and delivered, to the Agent such further instruments,
documents and certificates, and do and cause to be done such further acts that
may be reasonably necessary or advisable in the reasonable opinion of the Agent
to carry out more effectively the provisions and purposes of this Agreement and
the other Loan Documents.

    

    
      Section
8.11.  Material Contracts.

    

     

    The Borrower shall, and shall cause
each other Loan Party and each other Subsidiary to, duly and punctually perform
and comply with any and all material representations, warranties, covenants and
agreements expressed as binding upon any such Person under any Material
Contract.  The Borrower shall not, and shall not permit any other Loan
Party or any other Subsidiary to, do or knowingly permit to be done anything to
impair materially the value of any of the Material Contracts.

    

    
      Section 8.12.  REIT
Status.

    

     

    The Borrower shall maintain its status
as a REIT.

    

    
      Section 8.13.  Exchange
Listing.

    

     

    The Borrower shall maintain at least
one class of common shares of the Borrower listed on the New York Stock
Exchange.

    

    
      Section 8.14.  Guarantors.

    

     

    Within 5 Business Days of any Person
becoming a Subsidiary after the Agreement Date, the Borrower shall deliver
notice to the Agent that such Subsidiary has been acquired or formed, as the
case may be, which notice shall include the corporate name and jurisdiction of
such Subsidiary.  As soon as available, and in any event within 30
days after of any Person becoming a Subsidiary after the Agreement Date, the
Borrower shall deliver to the Agent each of the following in form and substance
satisfactory to the Agent: (a) an Accession Agreement executed by such
Subsidiary and (b) the items that would have been delivered under
subsections (v), (vi), (vii) and (viii) of Section 6.1.(a) if such
Subsidiary had been a Subsidiary on the Agreement
Date.  Notwithstanding the foregoing, (x) upon the request of the
Borrower and so long as the Borrower complies with Section 10.10. with respect
to such Subsidiary, up to two Taxable REIT Subsidiaries  shall not be
required to become a Guarantor and (y) if any other Subsidiary is unable,
for reasons acceptable to the Agent (in its sole discretion), to become a
Guarantor, then so long as the Borrower complies with Section 10.10. with
respect to such Subsidiary, such Subsidiary shall not be required to become a
Guarantor.

    

    

    Article
IX. Information

     

    For so long as this Agreement is in
effect, unless the Requisite Lenders (or, if required pursuant to
Section 13.7., all of the Lenders) shall otherwise consent in the manner
set forth in Section 13.7., the Borrower shall furnish to each Lender (or
to the Agent if so provided below) at its Lending Office:

    
      
         

      

      
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    Section 9.1.  Quarterly
Financial Statements.

     

    As soon as available and in any event
within 45 days after the close of each of the first, second and third fiscal
quarters of the Borrower, the unaudited consolidated balance sheet of the
Borrower and its Subsidiaries as at the end of such period and the related
unaudited consolidated statements of income and cash flows of the Borrower and
its Subsidiaries for such period, setting forth in each case in comparative form
the figures as of the end of and for the corresponding periods of the previous
fiscal year, all of which shall be certified by the chief financial officer of
the Borrower, in his or her opinion, to present fairly, in accordance with GAAP,
the consolidated financial position of the Borrower and its Subsidiaries as at
the date thereof and the results of operations for such period (subject to
normal year-end audit adjustments).

    

    
      Section 9.2.  Year-End
Statements.

    

     

    As soon as available and in any event
within 75 days after the end of each fiscal year of the Borrower, the audited
consolidated balance sheet of the Borrower and its Subsidiaries as at the end of
such fiscal year and the related audited consolidated statements of income,
stockholders’ equity and cash flows of the Borrower and its Subsidiaries for
such fiscal year, setting forth in comparative form the figures as at the end of
and for the previous fiscal year, all of which shall be certified by
(a) the chief financial officer of the Borrower, in his or her opinion, to
present fairly, in accordance with GAAP, the financial position of the Borrower
and its Subsidiaries as at the date thereof and the result of operations for
such period and (b) KPMG LLP or any other independent certified public
accountants of recognized national standing acceptable to the Requisite Lenders,
whose certificate shall be unqualified and in scope and substance satisfactory
to the Requisite Lenders and who shall have authorized the Borrower to deliver
such financial statements and certification thereof to the Agent and the Lenders
pursuant to this Agreement.

    

    
      Section 9.3.  Compliance
Certificate.

    

     

    At the time the financial statements
are furnished pursuant to the immediately preceding Sections 9.1. and 9.2.,
a certificate substantially in the form of Exhibit P (a “Compliance
Certificate”) executed on behalf of the Borrower by the chief financial officer
of the Borrower (a) setting forth as of the end of such quarterly
accounting period or fiscal year, as the case may be, the calculations required
to establish whether the Borrower was in compliance with the covenants contained
in Section 10.1.; and (b) stating that no Default or Event of Default
exists, or, if such is not the case, specifying such Default or Event of Default
and its nature, when it occurred and the steps being taken by the Borrower with
respect to such event, condition or failure.

    

    
      Section 9.4.  Other
Information.

    

     

    The Borrower will deliver to
Agent:

    
      
         

      

      
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(a)           Promptly
upon receipt thereof, copies of all reports, if any, submitted to the Borrower
or its Board of Directors by its independent public accountants including,
without limitation, any management report;

     

    (b)           Within
5 Business Days of the filing thereof, copies of all registration
statements (excluding the exhibits thereto and any registration statements on
Form S-8 or its equivalent), reports on Forms 10-K, 10-Q and 8-K (or their
equivalents) and all other periodic reports which any Loan Party or any other
Subsidiary shall file with the Securities and Exchange Commission (or any
Governmental Authority substituted therefor) or any national securities
exchange;

    

    (c)           Promptly
upon the mailing thereof to the shareholders of the Borrower generally, copies
of all financial statements, reports and proxy statements so mailed and promptly
upon the issuance thereof copies of all press releases issued by the Borrower,
any Subsidiary or any other Loan Party;

    

    (d)           As
soon as available and in any event within 45 days after the end of each fiscal
quarter of the Borrower, a Unencumbered Pool Certificate setting forth the
information to be contained therein as of the last day of such fiscal
quarter.

    

    (e)           No
later than 90 days after the end of each fiscal year of the Borrower ending
prior to the Termination Date, projected balance sheets, operating statements
and cash flow budgets of the Borrower and its Subsidiaries on a consolidated
basis for each quarter of the next succeeding
fiscal year, all itemized in reasonable detail. The foregoing shall be
accompanied by pro forma calculations, together with detailed assumptions,
required to establish whether or not the Borrower, and when appropriate its
consolidated Subsidiaries, will be in compliance with the covenants contained in
Section 10.1. and at the end of each fiscal quarter of the next succeeding
fiscal year.

    

    (f)           Within
10 Business Days of the Agent’s request therefor, a report in form and content
reasonably satisfactory to the Agent detailing the Borrower’s, together with its
Subsidiaries’, projected sources and uses of cash for the period of four
consecutive fiscal quarters immediately following the date of the Agent’s
request.  Such sources shall include but not be limited to excess
operating cash flow, availability under this Agreement, unused availability
under committed development loans, unfunded committed equity and any other
committed sources of funds.  Such uses shall include but not be
limited to cash obligations for binding acquisitions, unfunded development
costs, capital expenditures, debt service, overhead, dividends, maturing
Property loans, hedge settlements and other anticipated uses of
cash.

    

    (g)           Within
15 Business Days of the Agent’s request therefor, additional financial
information maintained with respect to the Borrower and its Subsidiaries and
each Eligible Property including, without limitation, property management
exception reports, current property portfolio listings, listings of the
Borrower’s and its Subsidiaries’ acquisitions from the most recent fiscal
quarter provided on a cost basis, appraised value basis and/or projected annual
rent basis.

     

    
      
         

      

      
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      (h)           If
and when any member of the ERISA Group (i) gives or is required to give
notice to the PBGC of any “reportable event” (as defined in Section 4043 of
ERISA) with respect to any Plan which might constitute grounds for a termination
of such Plan under Title IV of ERISA, or knows that the plan administrator of
any Plan has given or is required to give notice of any such reportable event, a
copy of the notice of such reportable event given or required to be given to
the PBGC; (ii) receives notice of complete or partial withdrawal liability
under Title IV of ERISA or notice that any Multiemployer Plan is in
reorganization, is insolvent or has been terminated, a copy of such notice;
(iii) receives notice from the PBGC under Title IV of ERISA of an intent to
terminate, impose liability (other than for premiums under Section 4007 of
ERISA) in respect of, or appoint a trustee to administer any Plan, a copy of
such notice; (iv) applies for a waiver of the minimum funding standard
under Section 412 of the Internal Revenue Code, a copy of such application;
(v) gives notice of intent to terminate any Plan under Section 4041(c) of
ERISA, a copy of such notice and other information filed with the PBGC;
(vi) gives notice of withdrawal from any Plan pursuant to Section 4063 of
ERISA, a copy of such notice; or (vii) fails to make any payment or
contribution to any Plan or Multiemployer Plan or in respect of any Benefit
Arrangement or makes any amendment to any Plan or Benefit Arrangement which has
resulted or could result in the imposition of a Lien or the posting of a bond or
other security, a certificate of the controller of the Borrower setting forth
details as to such occurrence and action, if any, which the Borrower or
applicable member of the ERISA Group is required or proposes to
take;

    

    

    (i)           To
the extent any Loan Party or any other Subsidiary is aware of the same, prompt
notice of the commencement of any proceeding or investigation by or before any
Governmental Authority and any action or proceeding in any court or other
tribunal or before any arbitrator against or in any other way relating adversely
to, or adversely affecting, any Loan Party or any other Subsidiary or any of
their respective properties, assets or businesses which, if determined or
resolved adversely to such Person, could reasonably be expected to have a
Material Adverse Effect, and prompt notice of the receipt of written notice that
any United States income tax returns of any Loan Party or any other Subsidiary
are being audited;

    

    (j)           A
copy of any amendment to the articles of incorporation, bylaws, partnership
agreement or other similar organizational documents of any Loan Party or any
other Subsidiary within 5 Business Days of the effectiveness
thereof;

    

    (k)           Prompt
notice of any change in the senior management of the Borrower, any Subsidiary or
any other Loan Party and any change in the business, assets, liabilities,
financial condition, results of operations or business prospects of any Loan
Party or any other Subsidiary which has had or could reasonably be expected to
have a Material Adverse Effect;

    

    (l)           Prompt
notice of the occurrence of any Default or Event of Default or any event which
constitutes or which with the passage of time, the giving of notice, or
otherwise, would constitute a default or event of default by any Loan Party or
any other Subsidiary under any Material Contract to which any such Person is a
party or by which any such Person or any of its respective properties may be
bound;

    

    
      
         

      

      
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      (m)           Promptly
upon entering into any Material Contract after the Agreement Date, a copy of
such Material Contract to the Agent;

      

      (n)           Prompt
notice of any order, judgment or decree in excess of $10,000,000 having been entered
against any Loan Party or any other Subsidiary or any of their respective
properties or assets;

    (o)           Prompt
notice of any written notification of a material violation of any law or
regulation or any inquiry shall have been received by any Loan Party or any
other Subsidiary from any Governmental Authority;

    

    (p)           Prompt
notice of the acquisition, incorporation or other creation of any Subsidiary,
the purpose for such Subsidiary, the nature of the assets and liabilities
thereof and whether such Subsidiary is a Wholly Owned Subsidiary of the
Borrower;

    

    (q)           Promptly
upon the request of the Agent, evidence of the Borrower’s calculation of the
Ownership Share with respect to a Subsidiary or an Unconsolidated Affiliate,
such evidence to be in form and detail satisfactory to the Agent;
and

    

    (r)           From
time to time and promptly upon each request, such data, certificates, reports,
statements, opinions of counsel, documents or further information regarding any
Property or the business, assets, liabilities, financial condition, results of
operations or business prospects of the Borrower or any of its Subsidiaries as
the Agent or any Lender may reasonably request.

    

    Article
X. Negative Covenants

     

    For so long as this Agreement is in
effect, unless the Requisite Lenders (or, if required pursuant to
Section 13.7., all of the Lenders) shall otherwise consent in the manner
set forth in Section 13.7., the Borrower shall comply with the following
covenants:

    

    
      Section 10.1.  Financial
Covenants.

    

     

    (a)           Minimum Tangible Net
Worth.  The Borrower shall not permit its Tangible Net Worth
determined on a consolidated basis at the end of any fiscal quarter to be less
than an amount equal to the greater of (i)(A) 80% of the Tangible Net Worth
of the Borrower as of March 31, 2008 plus (B) 80% of
the Net Proceeds of all Equity Issuances effected at any time after March 31,
2008 by the Borrower or any of its Subsidiaries to any Person other than the
Borrower or any of its Subsidiaries plus (C) 80% of
the market value (at the time of issuance) of any shares or partnership units
issued at any time after March 31, 2008 in exchange for any property contributed
to the Borrower or any of its Subsidiaries by any Person other than the Borrower
or any of its Subsidiaries minus (D) the
aggregate amount paid by the Borrower to purchase outstanding shares of its
common stock and Preferred Stock (to the extent such payments are permitted by
Section 10.1.(g)) at any time after March 31, 2008 or
(ii) $1,200,000,000.

    

    (b)           Ratio of Total Liabilities
to Gross Asset Value.  The Borrower shall not permit the ratio
of (i) Total Liabilities of the Borrower and its Subsidiaries determined on
a consolidated 

      
        
           

        

        
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    basis
to (ii) Gross Asset Value of the Borrower and its Subsidiaries determined
on a consolidated basis to exceed .55 to 1.00 at any time; provided, however, that if such
ratio is greater than 0.55 to 1.00 but is not greater than 0.60 to 1.00, then
such failure to comply with the foregoing covenant shall not constitute a
Default or an Event of Default and the Borrower shall be deemed to be in
compliance with this Section 10.1.(b) so long as such ratio does not exceed 0.55
to 1.00 more than three times during the term of this Agreement, and in each
instance, the ratio does not exceed 0.55 to 1.00 for a period of more than two
consecutive fiscal quarters.

    

    (c)           Ratio of EBITDA to Fixed
Charges.  The Borrower shall not permit, for any fiscal
quarter, the ratio of (i) EBITDA of the Borrower and its Subsidiaries
determined on a consolidated basis for such fiscal quarter to (ii) Fixed
Charges of the Borrower and its Subsidiaries determined on a consolidated basis
for such fiscal quarter, to be less than 1.75 to 1.00 at the end of such fiscal
quarter.

    

               (d)           Permitted
Investments.  The Borrower shall not, and shall not permit any
Loan Party or other Subsidiary to, make an Investment in or otherwise own the
following items that would cause the aggregate value of such holdings of such
Persons to exceed the following percentages of the Gross Asset
Value:

    

    (i)           assets,
(excluding (w) Properties which are retail properties leased to third party
tenants on a net lease basis, (x) equity interests in Subsidiaries,
(y) cash and (z) any assets of the types described in items (ii)
through (vi) below), such that the portion of the total Gross Asset Value
associated with such assets exceeds 15% of Gross Asset Value;

    

    (ii)           unimproved
real estate, (which shall not include (x) any Development Property or
(y) unimproved real estate acquired less than 12 months previously and with
respect to which a Development Property is planned within 12 months of its
acquisition) such that the aggregate book value of all such unimproved real
estate exceeds 5% of the Gross Asset Value;

    

    (iii)           Common
stock, Preferred Stock, other capital stock, beneficial interest in trust,
membership interest in limited liability companies and other equity interests in
Persons (other than consolidated Subsidiaries and Unconsolidated Affiliates),
such that the aggregate value of such interests calculated on the basis of the
lower of cost or market, exceeds 10% of the Gross Asset Value;

    

    (iv)           Mortgages
in favor of the Borrower or any other Loan Party, such that the aggregate book
value of Indebtedness secured by such Mortgages exceeds 10% of the Gross Asset
Value;

    

    (v)           Investments
in Unconsolidated Affiliates, such that the aggregate value of such Investments
in Unconsolidated Affiliates, exceeds 15% of the Gross Asset
Value.  For purposes of this clause (v), the “value” of any such
Investment in an Unconsolidated Affiliate shall equal (1) with respect to
any of such Unconsolidated Affiliate’s Properties under construction, the
Borrower’s Ownership Share of the book value of construction in

    
      
         

      

      
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    process for such Property
as of the date of determination and (2) with respect to any of such
Unconsolidated Affiliate’s Properties which have been completed, the Borrower’s
Ownership Share of Capitalized EBITDA of such Unconsolidated Affiliate
attributable to such Properties; and

     

    (vi)           the
aggregate amount of the Total Budgeted Costs for Development Properties in which
the Borrower either has a direct or indirect ownership interest shall not exceed
10% of the Gross Asset Value.  If a Development Property is owned by
an Unconsolidated Affiliate of the Borrower, or any other Subsidiary, then the
greater of (1) the product of (A) the Borrower’s or such Subsidiary’s
Ownership Share in such Unconsolidated Affiliate and (B) the amount of the
Total Budgeted Costs for such Development Property or (2) the recourse
obligations of the Borrower or such Subsidiary relating to the Indebtedness of
such Unconsolidated Affiliate, shall be used in calculating such investment
limitation.

    

    In
addition to the foregoing limitations, the aggregate value of the Investments
subject to the limitations in the preceding clauses (i) through (v) shall not
exceed 30% of the Gross Asset Value.

    

    (e)           Industry
Concentration.   The Borrower shall not, and shall not
permit any Loan Party or other Subsidiary to, permit the aggregate Annualized
Base Rents of all tenants of the Borrower, such Loan Party and such Subsidiary
conducting business in any single “industry” (as determined by reference to the
industrial classification set forth on the Industrial Classification Schedule
applicable to each such tenant) to exceed 30% of the Total Annualized Base Rents
of all tenants of the Borrower, the Loan Parties and all other Subsidiaries
(measured quarterly).

    

    (f)           Tenant
Concentration.  The Borrower shall not, and shall not permit
any Loan Party or other Subsidiary to, permit the aggregate Annualized Base
Rents of any single tenant (together with its Affiliates) of the Borrower, such
Loan Party and such Subsidiary to exceed 15% of the Total Annualized Base Rents
of the Borrower, the Loan Parties and all other Subsidiaries (measured
quarterly).

    

    (g)           Dividends and Other
Restricted Payments.  If no Event of Default exists, the
Borrower shall not declare or make, or incur any liability to make, any
Restricted Payments other than (i) cash distributions to its preferred and
common shareholders and (ii) payments made to purchase outstanding shares
of the preferred and common stock of the Borrower, which distributions to common
shareholders and payments to repurchase common shares in the aggregate shall not
exceed the sum of 95% of Funds From Operations plus cash distributions to its
preferred shareholders as of the end of each fiscal quarter for the four fiscal
quarter period then ending; provided that the Borrower may repurchase or redeem
preferred stock with the net proceeds from the issuance of preferred stock or
common stock.  If a Default or an Event of Default under
Section 11.1.(a), (e) or (f) shall exist neither the Borrower nor any
Subsidiary (other than Wholly Owned Subsidiaries) shall directly or indirectly
declare or make, or incur any liability to make, any Restricted
Payments.  If any other Event of Default exists, neither the Borrower
nor any Subsidiary (other than Wholly Owned Subsidiaries) shall directly or
indirectly declare or make, or incur any liability to make, any Restricted
Payments except that the 

      
        
           

        

        
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    Borrower may
make cash distributions to its shareholders in the minimum amount necessary to
maintain compliance with Section 8.12.

     

    Section 10.2.  Negative
Pledge.

     

    The Borrower shall not, and shall not
permit any other Loan Party or any other Subsidiary to, (a) create, assume,
incur or permit or suffer to exist any Lien upon any of the Unencumbered Pool
Properties or any direct or indirect ownership interest of the Borrower in any
Subsidiary owning any Unencumbered Pool Property, other than Permitted Liens, or
(b) permit any Unencumbered Pool Property, or any direct or indirect
ownership interest of the Borrower in any Subsidiary owning any Unencumbered
Pool Property, to become subject to a Negative Pledge, in each case if there
then exists a Default or an Event of Default or if such event causes a Borrowing
Base overadvance as contemplated by Section 2.7.(b)(ii).

    

    
      Section 10.3.  Restrictions
on Intercompany Transfers.

    

     

    The Borrower shall not, and shall not
permit any other Loan Party or any other Subsidiary to, create or otherwise
cause or suffer to exist or become effective any consensual encumbrance or
restriction of any kind on the ability of any Subsidiary to: (i) pay
dividends or make any other distribution on any of such Subsidiary’s capital
stock or other equity interests owned by the Borrower or any other Subsidiary;
(ii) pay any Indebtedness owed to the Borrower or any other Subsidiary;
(iii) make loans or advances to the Borrower or any other Subsidiary; or
(iv) transfer any of its property or assets to the Borrower or any other
Subsidiary.

    

    
      Section 10.4.  Merger,
Consolidation, Sales of Assets and Other Arrangements.

    

     

    The Borrower shall not, and shall not
permit any other Loan Party or any other Subsidiary to, (a) enter into any
transaction of merger or consolidation; (b) liquidate, windup or dissolve
itself (or suffer any liquidation or dissolution); (c) convey, sell, lease,
sublease, transfer or otherwise dispose of, in one transaction or a series of
transactions, all or any substantial part of its business or assets, or the
capital stock of or other Equity Interests in any of its Subsidiaries, whether
now owned or hereafter acquired; or (d) acquire the assets in the amount of
the Substantial Amount of, or make an Investment in the amount of the
Substantial Amount in, any other Person; provided, however, that:

    

    (i)           any
Subsidiary may merge with a Loan Party so long as such other Loan Party is the
survivor;

    

    (ii)           any
Subsidiary may sell, transfer or dispose of its assets to a Loan
Party;

    

    (iii)           a
Loan Party (other than the Borrower or any Loan Party which owns a Unencumbered
Pool Property) and any Subsidiary that is not (and is not required to be) a Loan
Party may convey, sell, transfer or otherwise dispose of, in one transaction or
a series of transactions, all or any substantial part of its business or assets,
or the capital stock of or other Equity Interests in any of its Subsidiaries,
and immediately thereafter liquidate, provided that immediately prior to any
such conveyance, sale, transfer,

    
      
         

      

      
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    disposition or liquidation
and immediately thereafter and after giving effect thereto, no Default or Event
of Default is or would be in existence;

    

    (iv)           any
Loan Party and any other Subsidiary may, directly or indirectly,
(A) acquire (whether by purchase, acquisition of Equity Interests of a
Person, or as a result
of a merger or consolidation) assets in the amount of the Substantial Amount of,
or make an Investment in the amount of the Substantial Amount in, any other
Person and (B) sell, lease or otherwise transfer, whether by one or a
series of transactions, assets in the amount of the Substantial Amount
(including capital stock or other securities of Subsidiaries) to any other
Person, so long as, in each case, (1) the Borrower shall have given the
Agent and the Lenders at least 30 days prior written notice of
the completion of such consolidation, merger, acquisition, Investment, sale,
lease or other transfer; (2) immediately prior thereto, and immediately
thereafter and after giving effect thereto, no Default or Event of Default is or
would be in existence; (3) in the case of a consolidation or merger
involving the Borrower or a Loan Party which owns a Unencumbered Pool Property,
such Person shall be the survivor thereof and (4) at the time the Borrower
gives notice pursuant to clause (1) of this subsection, the Borrower shall
have delivered to the Agent and the Lenders a Compliance Certificate, calculated
on a pro forma basis, evidencing the continued compliance by the Loan Parties
with the terms and conditions of this Agreement and the other Loan Documents,
including without limitation, the financial covenants contained in
Section 10.1., after giving effect to such consolidation, merger,
acquisition, Investment, sale, lease or other transfer; and

    

    (v)           the
Borrower, the Loan Parties and the other Subsidiaries may lease and sublease
their respective assets, as lessor or sublessor (as the case may be) in the
ordinary course of business, and may purchase and sell their respective assets
in the ordinary course of their business.

    

    Further,
no Loan Party nor any Subsidiary, shall enter into any sale-leaseback
transactions or other transaction by which such Person shall remain liable as
lessee (or the economic equivalent thereof) of any real or personal property
that it has sold or leased to another Person where the transaction is in an
amount which exceeds $10,000,000.

    

    
      Section 10.5.  Plans.

    

     

    The Borrower shall not, and shall not
permit any Subsidiary to, permit any of its respective assets to become or be
deemed to be “plan assets” within the meaning of ERISA, the Internal Revenue
Code and the respective regulations promulgated thereunder.

    

    
      Section 10.6.  Fiscal
Year.

    

     

    The Borrower shall not, and shall not
permit any Loan Party or other Subsidiary to, change its fiscal year from that
in effect as of the Agreement Date.

    

      
        
           

        

        
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        Section 10.7.  Modifications
of Organizational Documents.

      

       

      The Borrower shall not enter into, and
shall not permit any Subsidiary or other Loan Party to enter into any amendment,
supplement, restatement or other modification of its certificate or articles of
incorporation, articles of organization, certificate of limited partnership,
declaration of trust or other comparable organizational instrument (if any) that
could reasonably be expected to have a Material Adverse Effect.

       

    

    Section 10.8.  Modifications
to Material Contracts.

     

    The Borrower shall not enter into, or
permit any Subsidiary or other Loan Party to enter into, any amendment or
modification to any Material Contract which could reasonably be expected to have
a Material Adverse Effect or default in the performance of any obligations of
the Borrower or any Subsidiary in any Material Contract or permit any Material
Contract to be canceled or terminated prior to its stated maturity.

    

    
      Section 10.9.  Transactions
with Affiliates.

    

     

    The Borrower shall not permit to exist
or enter into, and will not permit any Loan Party or other Subsidiary to permit
to exist or enter into, any transaction (including the purchase, sale, lease or
exchange of any property or the rendering of any service) with any Affiliate of
the Borrower or with any director or senior officer of any Loan Party, except
(a) as set forth on Schedule 7.1.(r) or (b) transactions that are
(i) in an amount less than $2,000,000 and are approved by a majority of the
members of the Borrower’s board of directors that are not party to the
applicable transaction (the “Disinterested Directors”) or (ii) in the ordinary course
of business and pursuant to the reasonable requirements of the business of the
Borrower or any of its Subsidiaries and upon fair and reasonable terms which are
no less favorable to the Borrower or such Subsidiary than would be obtained in a
comparable arm’s length transaction with a Person that is not an Affiliate, as
reasonably determined in good faith
by the Disinterested Directors.  Notwithstanding the foregoing, no
payments may be made with respect to any items set forth on such Schedule upon
the occurrence and during the continuation of a Default or Event of
Default.

    

    
      Section 10.10.  Limitations
on Non-Guarantor Subsidiaries.

    

     

    The Borrower shall not, and shall not
permit any Loan Party or other Subsidiary to, with respect to any Subsidiary
(including a Taxable REIT Subsidiary) that does not execute a Guaranty pursuant
to Section 8.14., (a) permit such Subsidiary to incur any Indebtedness
other than Non Recourse Indebtedness and (b) make an Investment in,
(i) in the case of such Subsidiaries that are Taxable REIT Subsidiaries
(other than Crest Net Lease, Inc.), in an aggregate amount in excess of
$50,000,000; provided, however, that the Borrower may make or permit to exist an
Investment in Crest Net Lease, Inc. of up to, but not exceeding $150,000,000 and
(ii) in the case of such Subsidiaries that are not Taxable REIT Subsidiaries, in
an aggregate amount in excess of $50,000,000.

    
      
         

      

      
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      Article
XI. Default

       

      
        Section 11.1.  Events
of Default.

      

       

      Each of the following shall constitute
an Event of Default, whatever the reason for such event and whether it shall be
voluntary or involuntary or be effected by operation of Applicable Law or
pursuant to any judgment or order of any Governmental Authority:

      

      (a)           Default in
Payment.  The Borrower shall, under this Agreement or any other
Loan Document, fail to pay (whether upon demand, at maturity, by reason of
acceleration or otherwise), (i) when due, the principal on any of the Loans
or (ii) within five days of the date the Borrower
or any other Loan Party has received notice of such failure from the Agent, any
interest or fees on any of the Loans or other payment Obligations owing by the
Borrower under this Agreement or any other Loan Document, or any other Loan
Party shall fail to pay when due any payment obligation owing by such Loan Party
under any Loan Document to which it is a party.

    

    

    (b)           Default in
Performance.

    

    (i)           Any
Loan Party shall fail to perform or observe any term, covenant, condition or
agreement on its part to be performed or observed and contained in Sections
9.4.(l), 10.2., 10.3., 10.4., 10.5., 10.6., 10.7., 10.8.; or

    

    (ii)           Any
Loan Party shall fail to perform or observe any term, covenant, condition or
agreement contained in this Agreement or any other Loan Document to which it is
a party and not otherwise mentioned in this Section and such failure shall
continue for a period of 30 calendar days after the earlier of (x) the
date upon which any Loan Party obtains knowledge of such failure or (y) the
date upon which the Borrower has received written notice of such failure from
the Agent.

    

    (c)           Misrepresentations.  Any
written statement, representation or warranty made or deemed made by or on
behalf of any Loan Party under this Agreement or under any other Loan Document,
or any amendment hereto or thereto, or in any other writing or statement at any
time furnished by, or at the direction of, any Loan Party to the Agent or any
Lender, shall at any time prove to have been incorrect or misleading in any
material respect when furnished or made or deemed made.

    

    (d)           Indebtedness
Cross-Default.

    

    
      	
            	
              (i)

            	
              Any
      Loan Party shall fail to pay when due and payable the principal of, or
      interest on, any Indebtedness (other than the Loans) having an aggregate
      outstanding principal amount of $10,000,000 or more (“Material
      Indebtedness”) and such failure shall continue beyond any applicable cure
      periods; or

            

    

    

    
      	
            	
              (ii)

            	
              (x) The
      maturity of any Material Indebtedness shall have been accelerated in
      accordance with the provisions of any indenture, contract or instrument
      evidencing, providing for the creation of or otherwise concerning such
      Material Indebtedness or (y) any Material Indebtedness shall have
      been required to be prepaid or repurchased prior to the stated maturity
      thereof.

            

    

     

    
      
         

      

      
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      (e)           Voluntary Bankruptcy
Proceeding.  The Borrower or any Subsidiary
shall:  (i) commence a voluntary case under the Bankruptcy Code
of 1978, as amended, or other federal bankruptcy laws (as now or hereafter in
effect); (ii) file a petition seeking to take advantage of any other
Applicable Laws, domestic or foreign, relating to bankruptcy, insolvency,
reorganization, winding-up, or composition or adjustment of debts;
(iii) consent to, or fail to contest in a timely and appropriate manner,
any petition filed against it in an involuntary case under such bankruptcy laws
or other Applicable Laws or consent to any proceeding or action described in the
immediately following subsection; (iv) apply for or consent to, or fail to
contest in a timely and appropriate manner, the appointment of, or the taking of
possession by, a receiver, custodian, trustee, or liquidator of itself or of a
substantial part of its property, domestic or foreign; (v) admit in writing
its inability to pay its debts as they become due; (vi) make a general
assignment for the benefit of creditors; (vii) make a conveyance fraudulent
as to creditors under any Applicable Law; or (viii) take any corporate or
partnership action for the purpose of effecting any of the
foregoing.

    

    

    (f)           Involuntary Bankruptcy
Proceeding.  A case or other proceeding shall be commenced
against Borrower or any Subsidiary in any court of competent jurisdiction
seeking:  (i) relief under the Bankruptcy Code of 1978, as
amended or other federal bankruptcy laws (as now or hereafter in effect) or
under any other Applicable Laws, domestic or foreign, relating to bankruptcy,
insolvency, reorganization, winding-up, or composition or adjustment of debts;
or (ii) the appointment of a trustee, receiver, custodian, liquidator or
the like of such Person, or of all or any substantial part of the assets,
domestic or foreign, of such Person, and in the case of either clause (i) or
(ii) such case or proceeding shall continue undismissed or unstayed for a period
of 60 consecutive calendar days, or an order granting the relief requested in
such case or proceeding (including, but not limited to, an order for relief
under such Bankruptcy Code or such other federal bankruptcy laws) shall be
entered.

    

    (g)           Revocation of Loan
Documents.  Any Loan Party shall (or shall attempt to) disavow,
revoke or terminate any Loan Document to which it is a party or shall otherwise
challenge or contest in any action, suit or proceeding in any court or before
any Governmental Authority the validity or enforceability of any Loan
Document.

    

    (h)           Judgment.   A
judgment or order for the payment of money shall be entered against the Borrower
or any Subsidiary, by any court or other tribunal and (i) such judgment or
order shall continue for a period of 60 days without being paid stayed or
dismissed through appropriate appellate proceedings and (ii) either
(A) the amount for which insurance has not been acknowledged in writing by
the applicable insurance carrier (or the amount as to which the insurer has
denied liability) exceeds, individually or together with all other such
judgments or orders entered against the Borrower and all Subsidiaries,
$20,000,000 or
(B) such judgment or order could reasonably be expected to have a Material
Adverse Effect.

    

    (i)           Attachment.  A
warrant, writ of attachment, execution or similar process shall be issued
against any property of the Borrower or any Subsidiary, which exceeds,
individually or 

      
        
           

        

        
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    together with
all other such warrants, writs, executions and processes, $15,000,000 in amount
and such warrant, writ, execution or process shall not be paid, discharged,
vacated, stayed or bonded for a period of 60 days; provided, however, that if a
bond has been issued in favor of the claimant or other Person obtaining such
warrant, writ, execution or process, the issuer of such bond shall execute a
waiver or subordination agreement in form and substance satisfactory to the
Agent pursuant to which the issuer of such bond subordinates its right of
reimbursement, contribution or subrogation to the Obligations and waives or
subordinates any Lien it may have on the assets of the Borrower or any
Subsidiary.

     

    (j)           ERISA.  Any
member of the ERISA Group shall fail to pay when due an amount or amounts
aggregating in excess of $15,000,000 which it shall have become liable to pay
under Title IV of ERISA; or notice of intent to terminate a Material Plan shall
be filed under Title IV of ERISA by any member of the ERISA Group, any plan
administrator or any combination of the foregoing; or the PBGC shall institute
proceedings under Title IV of ERISA to terminate, to impose liability (other
than for premiums under Section 4007 of ERISA) in respect of, or to cause a
trustee to be appointed to administer any Material Plan; or a condition shall
exist by reason of which the PBGC would be entitled to obtain a decree
adjudicating that any Material Plan must be terminated; or there shall occur a
complete or partial withdrawal from, or a default, within the meaning of Section
4219(c)(5) of ERISA, with respect to, one or more Multiemployer Plans which
could cause one or more members of the ERISA Group to incur a current payment
obligation in excess of $15,000,000.

     

    (k)           Loan
Documents.  An Event of Default (as defined therein) shall
occur under any of the other Loan Documents;

    

    
      	
            	
              (l)      
          

            	
              Change of
      Control/Change in
Management.

            

    

    

    (i)           Any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)), is or becomes
the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange
Act, except that a Person will be deemed to have “beneficial ownership” of all
securities that such Person has the right to acquire, whether such right is
exercisable immediately or only after the passage of time), directly or
indirectly, of more than 50% of the total voting power of the then outstanding
voting stock of the Borrower;

    

    (ii)           During
any period of 12 consecutive months ending after the Agreement Date, individuals
who at the beginning of any such 12-month period constituted the Board of
Directors of the Borrower (together with any new directors whose election by
such Board or whose nomination for election by the shareholders of the Borrower
was approved by a vote of a majority of the directors then still in office who
were either directors at the beginning of such period or whose election or
nomination for election was previously so approved) cease for any reason to
constitute a majority of the Board of Directors of the Borrower then in office;
or

    

    (iii)           If
any three of Thomas Lewis, Gary Malino, Paul Meurer or Mike Pfeiffer cease for
any reason to be principally involved in the senior management of the Borrower,
and the Borrower shall have failed to replace the resulting vacancies in
senior

    
      
         

      

      
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    management with
an individual or individuals reasonably acceptable to the Requisite Lenders
within a period of nine months.

      

      (m)           Damage; Strike;
Casualty.  Any material damage to, or loss, theft or
destruction of, any Property, whether or not insured, or any strike, lockout,
labor dispute, embargo, condemnation, act of God or public enemy, or other
casualty which causes, for more than 30 consecutive days beyond the coverage
period of any applicable business interruption insurance, the cessation or
substantial curtailment of revenue producing activities of the Borrower or its
Subsidiaries
taken as a whole and only if any such event or circumstance could reasonably be
expected to have a Material Adverse Effect.

    

    

    (n)           Material Adverse
Effect.  There shall occur any event that has or is reasonably
likely to have a Material Adverse Effect.

    

    
      Section 11.2.  Remedies
Upon Event of Default.

    

     

    Upon the occurrence and during the
continuance of an Event of Default the following provisions shall
apply:

    

    (a)           Acceleration; Termination of
Facilities.

    

    
      	
            	
              (i)

            	
              Automatic.  Upon
      the occurrence of an Event of Default specified in Sections 11.1.(e)
      or 11.1.(f), (1)(A) the principal of, and all accrued interest on, the
      Loans and the Notes at the time outstanding and (B) all of the other
      Obligations of the Borrower, including, but not limited to, the other
      amounts owed to the Lenders and the Agent under this Agreement, the Notes
      or any of the other Loan Documents shall become immediately and
      automatically due and payable by the Borrower without presentment, demand,
      protest, or other notice of any kind, all of which are expressly waived by
      the Borrower, and (2) the Commitments and the Swingline Commitment
      and the obligation of the Lenders to make Loans hereunder, shall all
      immediately and automatically
terminate.

            

    

    

    
      	
            	
              (ii)

            	
              Optional.  If
      any other Event of Default shall exist, the Agent may, and at the
      direction of the Requisite Lenders (which must include the Lender then
      acting as Agent) shall:  (1) declare (A) the principal
      of, and accrued interest on, the Loans and the Notes at the time
      outstanding and (B) all of the other Obligations, including, but not
      limited to, the other amounts owed to the Lenders and the Agent under this
      Agreement, the Notes or any of the other Loan Documents to be forthwith
      due and payable, whereupon the same shall immediately become due and
      payable without presentment, demand, protest or other notice of any kind,
      all of which are expressly waived by the Borrower, and (2) terminate
      the Commitments and the obligation of the Lenders to make Loans
      hereunder.  If the Agent has exercised any of the rights
      provided under the preceding sentence, the Swingline Lender
      shall:  (x) declare the principal of, and accrued interest
      on, the Swingline Loans and the Swingline Notes at the time outstanding,
      and all of the other Obligations owing to the Swingline Lender, to be
      forthwith due and payable, whereupon the same shall immediately become due
      and payable without presentment, demand, protest or other notice of any
      kind, all of which are expressly waived by the Borrower and
      (y) terminate the Swingline Commitment and the obligation of the
      Swingline Lender to make Swingline
Loans.

            

    

    

    
      
         

      

      
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    (b)           Loan
Documents.  The Requisite Lenders may direct the Agent to, and
the Agent if so directed shall, exercise any and all of its rights under any and
all of the other Loan Documents.

     

    (c)           Applicable
Law.  The Requisite Lenders may direct the Agent to, and the
Agent if so directed shall, exercise all other rights and remedies it may have
under any Applicable Law.

    

    (d)           Appointment of
Receiver.  To the extent permitted by Applicable Law, the Agent
and the Lenders shall be entitled to the appointment of a receiver for the
assets and properties of the Borrower and its Subsidiaries, without notice of
any kind whatsoever and without regard to the adequacy of any security for the
Obligations or the solvency of any party bound for its payment, to take
possession of all or any portion of the Unencumbered Pool Properties and/or the
business operations of the Borrower and its Subsidiaries and to exercise such
power as the court shall confer upon such receiver.

    

    (e)           Rescission of Acceleration
by Requisite Lenders.  If at any time after acceleration of the
maturity of the Loans and the other Obligations, the Borrower shall pay all
arrears of interest and all payments on account of principal of the Obligations
which shall have become due otherwise than by acceleration (with interest on
principal and, to the extent permitted by Applicable Law, on overdue interest,
at the rates specified in this Agreement) and all Events of Default and Defaults
(other than nonpayment of principal of and accrued interest on the Obligations
due and payable solely by virtue of acceleration) shall become remedied or
waived to the satisfaction of the Requisite Lenders (which must include the
Lender then acting as Agent), then by written notice to the Borrower, the
Requisite Lenders (which must include the Lender then acting as Agent) may
elect, in the sole discretion of such Requisite Lenders, to rescind and annul
the acceleration and its consequences.  The provisions of the
preceding sentence are intended merely to bind all of the Lenders to a decision
which may be made at the election of the Requisite Lenders, and are not intended
to benefit the Borrower and do not give the Borrower the right to require the
Lenders to rescind or annul any acceleration hereunder, even if the conditions
set forth herein are satisfied.

    

    
      Section 11.3.  Remedies
Upon Default.

    

     

    Upon the occurrence of a Default
specified in Sections 11.1.(e) or 11.1.(f), the Commitments shall
immediately and automatically terminate.

    

    
      Section 11.4.  Marshaling;
Payments Set Aside.

    

     

    Neither the Agent nor any Lender shall
be under any obligation to marshal any assets in favor of any Loan Party or any
other party or against or in payment of any or all of the
Obligations.  To the extent that any Loan Party makes a payment or
payments to the Agent and/or any Lender, or the Agent and/or any Lender enforce
their security interests or exercise their rights of setoff, and such payment or
payments or the proceeds of such enforcement or setoff or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential,

    
      
         

      

      
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    set aside
and/or required to be repaid to a trustee, receiver or any other party under any
bankruptcy law, state or federal law, common law or equitable cause, then to the
extent of such recovery, the Obligations or part thereof originally intended to
be satisfied, and all Liens, rights and remedies therefor, shall be revived and
continued in full force and effect as if such payment had not been made or such
enforcement or setoff had not occurred.

     

    Section 11.5.  Allocation
of Proceeds.

     

    If an Event of Default exists and
maturity of any of the Obligations has been accelerated, all payments received
by the Agent under any of the Loan Documents, in respect of any principal of or
interest on the Obligations or any other amounts payable by the Borrower
hereunder or thereunder, shall be applied in the following order and
priority:

    

    (a)           amounts
due to the Agent and the Lenders in respect of Fees and expenses due under
Section 13.2.;

    

    (b)           payments
of interest on Swingline Loans;

    

    (c)           payments
of interest on all other Loans, to be applied for the ratable benefit of the
Lenders, in such order as the Lenders may determine in their sole
discretion;

    

    (d)           payment
of principal on Swingline Loans;

    

    (e)           payments
of principal of all other Loans, to be applied for the ratable benefit of the
Lenders, in such order as the Lenders may determine in their sole
discretion;

    

    (f)           amounts
due to the Agent and the Lenders pursuant to Sections 12.7. and
13.10.;

    

    (g)           payments
of all other amounts due under any of the Loan Documents, if any, to be applied
for the ratable benefit of the Lenders; and

    

    (h)           any
amount remaining after application as provided above, shall be paid to the
Borrower or whomever else may be legally entitled thereto.

    

    
      Section 11.6.  Performance
by Agent.

    

     

    If the Borrower shall fail to perform
any covenant, duty or agreement contained in any of the Loan Documents, the
Agent may perform or attempt to perform such covenant, duty or agreement on
behalf of the Borrower after the expiration of any cure or grace periods set
forth herein.  In such event, the Borrower shall, at the request of
the Agent, promptly pay any amount reasonably expended by the Agent in such
performance or attempted performance to the Agent, together with interest
thereon at the applicable Post-Default Rate from the date of such expenditure
until paid.  Notwithstanding the foregoing, neither the Agent nor any
Lender shall 

    
      
         

      

      
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    have any
liability or responsibility whatsoever for the performance of any obligation of
the Borrower under this Agreement or any other Loan Document.

      

      
        Section 11.7.  Rights
Cumulative.

      

       

      The rights and remedies of
the Agent and the Lenders under this Agreement and each of the other Loan
Documents shall be cumulative and not exclusive of any rights or remedies which
any of them may otherwise have under Applicable Law.  In exercising
their respective rights and remedies
the Agent and the Lenders may be selective and no failure or delay by the Agent
or any of the Lenders in exercising any right shall operate as a waiver of it,
nor shall any single or partial exercise of any power or right preclude its
other or further exercise or the exercise of any other power or
right.

    

    

    Article
XII. The Agent

     

    
      Section 12.1.  Appointment
and Authorization.

    

     

    Each Lender hereby irrevocably appoints
and authorizes the Agent to take such action as contractual representative on
such Lender’s behalf and to exercise such powers under this Agreement and the
other Loan Documents as are specifically delegated to the Agent by the terms
hereof and thereof, together with such powers as are reasonably incidental
thereto. Not in limitation of the foregoing, each Lender authorizes and directs
the Agent to enter into the Loan Documents (other than this Agreement) for the
benefit of the Lenders.  Each Lender hereby agrees that, except as
otherwise set forth herein, any action taken by the Requisite Lenders in
accordance with the provisions of this Agreement or the Loan Documents, and the
exercise by the Requisite Lenders of the powers set forth herein or therein,
together with such other powers as are reasonably incidental thereto, shall be
authorized and binding upon all of the Lenders.  Nothing herein shall
be construed to deem the Agent a trustee or fiduciary for any Lender or to
impose on the Agent duties or obligations other than those expressly provided
for herein.  Without limiting the generality of the foregoing, the use
of the terms “Agent”, “Agent”, “agent” and similar terms in the Loan Documents
with reference to the Agent is not intended to connote any fiduciary or other
implied (or express) obligations arising under agency doctrine of any Applicable
Law.  Instead, use of such terms is merely a matter of market custom,
and is intended to create or reflect only an administrative relationship between
independent contracting parties.  The Agent shall deliver to each
Lender, promptly upon receipt thereof by the Agent, copies of each of the
financial statements, certificates, notices and other documents delivered to the
Agent pursuant to Article IX. that the Borrower is not otherwise required to
deliver directly to the Lenders.  The Agent will also furnish to any
Lender, upon the request of such Lender, a copy (or, where appropriate, an
original) of any document, instrument, agreement, certificate or notice
furnished to the Agent by the Borrower, any Loan Party or any other Affiliate of
the Borrower, pursuant to this Agreement or any other Loan Document not already
delivered to such Lender pursuant to the terms of this Agreement or any such
other Loan Document.  As to any matters not expressly provided for by
the Loan Documents (including, without limitation, enforcement or collection of
any of the Obligations), the Agent shall not be required to exercise any
discretion or take any action, but shall be required to act or to refrain from
acting (and shall be fully protected in so acting or refraining from acting)
upon the instructions of the Requisite Lenders (or all of the Lenders if
explicitly required under any other provision of this Agreement), and such

      
        
           

        

        
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    instructions
shall be binding upon all Lenders and all holders of any of the Obligations;
provided, however, that, notwithstanding anything in this Agreement to the
contrary, the Agent shall not be required to take any action which exposes the
Agent to personal liability or which is contrary to this Agreement or any other
Loan Document or Applicable Law.  Not in limitation of the foregoing,
the Agent may exercise any right or remedy it or the Lenders may have under any
Loan Document upon the occurrence of a Default or an Event of Default unless the
Requisite Lenders have directed the Agent otherwise.  Without limiting
the foregoing, no Lender shall have any right of action whatsoever against the
Agent as a result of the Agent acting or refraining from acting under this
Agreement or any of the other Loan Documents in accordance with the instructions
of the Requisite Lenders, or where applicable, all the Lenders.

    

    
      Section 12.2.  Agent’s
Reliance, Etc.

    

     

    Notwithstanding any other provisions of
this Agreement or any other Loan Documents, neither the Agent nor any of its
directors, officers, agents, employees or counsel shall be liable for any action
taken or not taken by it under or in connection with this Agreement or any other
Loan Document, except for its or their own gross negligence or willful
misconduct in connection with its duties expressly set forth herein or
therein.  Without limiting the generality of the foregoing, the Agent:
may consult with legal counsel (including its own counsel or counsel for the
Borrower or any other Loan Party), independent public accountants and other
experts selected by it and shall not be liable for any action taken or omitted
to be taken in good faith by it in accordance with the advice of such counsel,
accountants or experts.  Neither the Agent nor any of its directors,
officers, agents, employees or counsel: (a) makes any warranty or
representation to any Lender or any other Person and shall be responsible to any
Lender or any other Person for any statement, warranty or representation made or
deemed made by the Borrower, any other Loan Party or any other Person in or in
connection with this Agreement or any other Loan Document; (b) shall have
any duty to ascertain or to inquire as to the performance or observance of any
of the terms, covenants or conditions of this Agreement or any other Loan
Document or the satisfaction of any conditions precedent under this Agreement or
any Loan Document on the part of the Borrower or other Persons or inspect the
property, books or records of the Borrower or any other Person; (c) shall
be responsible to any Lender for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement or any other
Loan Document, any other instrument or document furnished pursuant thereto or
any collateral covered thereby or the perfection or priority of any Lien in
favor of the Agent on behalf of the Lenders in any such collateral;
(d) shall have any liability in respect of any recitals, statements,
certifications, representations or warranties contained in any of the Loan
Documents or any other document, instrument, agreement, certificate or statement
delivered in connection therewith; and (e) shall incur any liability under
or in respect of this Agreement or any other Loan Document by acting upon any
notice, consent, certificate or other instrument or writing (which may be by
telephone, telecopy or electronic mail) believed by it to be genuine and signed,
sent or given by the proper party or parties.  The Agent may execute
any of its duties under the Loan Documents by or through agents, employees or
attorneys-in-fact and shall not be responsible for the negligence or misconduct
of any agent or attorney-in-fact that it selects in the absence of gross
negligence or willful misconduct.

    

    

      
        
           

        

        
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        Section 12.3.  Notice
of Defaults.

      

       

      The Agent shall not be deemed to have
knowledge or notice of the occurrence of a Default or Event of Default unless
the Agent has received notice from a Lender or the Borrower referring to this
Agreement, describing with reasonable specificity such Default or Event of
Default and stating that such notice is a “notice of default”. If any Lender
(excluding the Lender which is also serving as the Agent) becomes aware of any
Default or Event of Default, it shall promptly send to the Agent such a “notice
of default”.  Further, if the Agent receives such a “notice of
default,” the Agent shall give prompt notice thereof to the
Lenders.

       

    

    Section 12.4.  Wells
Fargo as Lender.

     

    Wells Fargo, as a Lender, shall have
the same rights and powers under this Agreement and any other Loan Document as
any other Lender and may exercise the same as though it were not the Agent; and
the term “Lender” or “Lenders” shall, unless otherwise expressly indicated,
include Wells Fargo in each case in its individual capacity.  Wells
Fargo and its affiliates may each accept deposits from, maintain deposits or
credit balances for, invest in, lend money to, act as trustee under indentures
of, serve as financial advisor to, and generally engage in any kind of business
with the Borrower, any other Loan Party or any other affiliate thereof as if it
were any other bank and without any duty to account therefor to the other
Lenders.  Further, the Agent and any affiliate may accept fees and
other consideration from the Borrower for services in connection with this
Agreement and otherwise without having to account for the same to the other
Lenders.  The Lenders acknowledge that, pursuant to such activities,
Wells Fargo or its affiliates may receive information regarding the Borrower,
other Loan Parties, other Subsidiaries and other Affiliates (including
information that may be subject to confidentiality obligations in favor of such
Person) and acknowledge that the Agent shall be under no obligation to provide
such information to them.

    

    
      Section
12.5.  Approvals of Lenders.

    

     

    All communications from the Agent to
any Lender requesting such Lender’s determination, consent, approval or
disapproval (a) shall be given in the form of a written notice to such
Lender, (b) shall be accompanied by a description of the matter or issue as
to which such determination, approval, consent or disapproval is requested, or
shall advise such Lender where information, if any, regarding such matter or
issue may be inspected, or shall otherwise describe the matter or issue to be
resolved, (c) shall include, if reasonably requested by such Lender and to
the extent not previously provided to such Lender, written materials and a
summary of all oral information provided to the Agent by the Borrower in respect
of the matter or issue to be resolved, and (d) shall include the Agent’s
recommended course of action or determination in respect
thereof.  Unless a Lender shall give written notice to the Agent that
it specifically objects to the recommendation or determination of the Agent
(together with a reasonable written explanation of the reasons behind such
objection) within 10 Business Days (or such other period as may be specifically
required under the express terms of the Loan Documents) of receipt of such
communication, such Lender shall be deemed to have conclusively approved of or
consented to such recommendation or determination.

    

    
      

        
          
             

          

          
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        Section 12.6.  Lender
Credit Decision, Etc.

      

       

      Each Lender expressly acknowledges and
agrees that neither the Agent nor any of its officers, directors, employees,
agents, counsel, attorneys-in-fact or other affiliates has made any
representations or warranties to such Lender and that no act by the Agent
hereafter taken, including any review of the affairs of the Borrower, any other
Loan Party or any other Subsidiary or Affiliate, shall be deemed to constitute
any such representation or warranty by the Agent to any Lender.  Each
Lender acknowledges that it has, independently and without reliance upon the
Agent, any other Lender or counsel to the Agent, or any of their respective
officers, directors, employees, agents or counsel, and based on the financial
statements of the Borrower, the other Loan Parties, the other Subsidiaries and
other Affiliates, and inquiries of such Persons, its independent due diligence
of the business and affairs of the Borrower, the other Loan Parties, the
other
Subsidiaries and other Persons, its review of the Loan Documents, the legal
opinions required to be delivered to it hereunder, the advice of its own counsel
and such other documents and information as it has deemed appropriate, made its
own credit and legal analysis and decision to enter into this Agreement and the
transactions contemplated hereby.  Each Lender also acknowledges that
it will, independently and without reliance upon the Agent, any other Lender or
counsel to the Agent or any of their respective officers, directors, employees
and agents, and based on such review, advice, documents and information as it
shall deem appropriate at the time, continue to make its own decisions in taking
or not taking action under the Loan Documents.  The Agent shall not be
required to keep itself informed as to the performance or observance by the
Borrower or any other Loan Party of the Loan Documents or any other document
referred to or provided for therein or to inspect the properties or books of, or
make any other investigation of, the Borrower, any other Loan Party or any other
Subsidiary.  Except for notices, reports and other documents and
information expressly required to be furnished to the Lenders by the Agent under
this Agreement or any of the other Loan Documents, the Agent shall have no duty
or responsibility to provide any Lender with any credit or other information
concerning the business, operations, property, financial and other condition or
creditworthiness of the Borrower, any other Loan Party or any other Affiliate
thereof which may come into possession of the Agent or any of its officers,
directors, employees, agents, attorneys-in-fact or other
Affiliates.  Each Lender acknowledges that the Agent’s legal counsel
in connection with the transactions contemplated by this Agreement is only
acting as counsel to the Agent and is not acting as counsel to such
Lender.

    

    

    
      Section 12.7.  Indemnification
of Agent.

    

     

    Regardless of whether the transactions
contemplated by this Agreement and the other Loan Documents are consummated,
each Lender agrees to indemnify the Agent (to the extent not reimbursed by the
Borrower and without limiting the obligation of the Borrower to do so) pro rata
in accordance with such Lender’s respective Pro Rata Share, from and against any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever which may at any time be imposed on, incurred by, or asserted against
the Agent (in its capacity as Agent but not as a “Lender”) in any way relating
to or arising out of the Loan Documents, any transaction contemplated hereby or
thereby or any action taken or omitted by the Agent under the Loan Documents
(collectively, “Indemnifiable Amounts”); provided, however, that no Lender shall
be liable for any portion of such Indemnifiable Amounts to the extent resulting
from the Agent’s gross negligence or willful 

    
      
         

      

      
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    misconduct
as determined by a court of competent jurisdiction in a final, non-appealable
judgment provided, however, that no action taken in accordance with the
directions of the Requisite Lenders (or all Lenders, if expressly required
hereunder) shall be deemed to constitute gross negligence or willful misconduct
for purposes of this Section.  Without limiting the generality of the
foregoing, each Lender agrees to reimburse the Agent (to the extent not
reimbursed by the Borrower and without limiting the obligation of the Borrower
to do so) promptly upon demand for its ratable share of any out-of-pocket
expenses (including the reasonable fees and expenses of the counsel to the
Agent) incurred by the Agent in connection with the preparation, negotiation,
execution, administration, or enforcement (whether through negotiations, legal
proceedings, or otherwise) of, or legal advice with respect to the rights or
responsibilities of the parties under, the Loan Documents, any suit or action
brought by the Agent to enforce the terms of the Loan Documents and/or collect
any Obligations, any “lender liability” suit or claim brought against the Agent
and/or the Lenders, and any claim or suit brought against the Agent and/or the
Lenders arising under any Environmental Laws.  Such out-of-pocket
expenses (including counsel fees) shall be advanced by the Lenders on the
request of the Agent notwithstanding any claim or assertion that the Agent is
not entitled to indemnification hereunder upon receipt of an undertaking by the
Agent that the Agent will reimburse the Lenders if it is actually and finally
determined by a court of competent jurisdiction that the Agent is not so
entitled to indemnification.  The agreements in this Section shall
survive the payment of the Loans and all other amounts payable hereunder or
under the other Loan Documents and the termination of this
Agreement.  If the Borrower shall reimburse the Agent for any
Indemnifiable Amount following payment by any Lender to the Agent in respect of
such Indemnifiable Amount pursuant to this Section, the Agent shall share such
reimbursement on a ratable basis with each Lender making any such
payment.

    

    
      Section 12.8.  Successor
Agent.

    

     

    The Agent may resign at any time as
Agent under the Loan Documents by giving written notice thereof to the Lenders
and the Borrower.  Upon any such resignation, the Requisite Lenders
shall have the right to appoint a successor Agent which appointment shall,
provided no Default or Event of Default exists, be subject to the Borrower’s
approval, which approval shall not be unreasonably withheld or delayed (except
that the Borrower shall, in all events, be deemed to have approved each Lender
and any of its affiliates as a successor Agent).  If no successor
Agent shall have been so appointed in accordance with the immediately preceding
sentence, and shall have accepted such appointment, within 30 days after the
resigning Agent’s giving of notice of resignation, then the resigning Agent may,
on behalf of the Lenders, appoint a successor Agent, which shall be a Lender, if
any Lender shall be willing to serve, and otherwise shall be an Eligible
Assignee.  The current Agent shall continue to act as Agent hereunder
until the earlier of (a) 30 days after the then current Agent’s resignation
or (b) the date on which a successor Agent is appointed by the Requisite
Lenders.  Upon the acceptance of any appointment as Agent hereunder by
a successor Agent, such successor Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the current Agent,
and the current Agent shall be discharged from its duties and obligations under
the Loan Documents.  After any Agent’s resignation hereunder as Agent,
the provisions of this Article XII. shall continue to inure to its benefit
as to any actions taken or omitted to be taken by it while it was Agent under
the Loan Documents.  Notwithstanding anything contained herein to the
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    the Agent may
assign its rights and duties under the Loan Documents to any of its affiliates
by giving the Borrower and each Lender prior written notice.

      

      
        Section
12.9.  Titled Agents.

      

       

      Each Documentation Agent and each
Syndication Agent (each a “Titled Agent”) in each such respective capacity,
assumes no responsibility or obligation hereunder, including, without
limitation, for servicing, enforcement or collection of any of the Loans, nor
any duties as an agent hereunder for the Lenders.  The titles given to
the Titled Agents are solely honorific and imply no fiduciary responsibility on
the part of the Titled Agents to the Agent, any Lender, the Borrower or any
other Loan Party and the use of such titles does not impose on the Titled Agents
any duties or obligations greater than those of any other Lender or entitle the
Titled Agents to any rights other than those to which any other Lender is
entitled.

    

    

    Article
XIII. Miscellaneous

     

    
      Section 13.1.  Notices.

    

     

    (a)           Unless
otherwise provided herein, communications provided for hereunder shall be in
writing and shall be mailed, telecopied or delivered as follows:

    

    If to the Borrower:

    

    Realty
Income Corporation

    600
La Terraza Blvd.

    Escondido,
California  92025

    Attention:  Legal
Department

    Telecopy
Number:     (760) 741-2235

    Telephone
Number:    (760) 741-2111

    

    If to the Agent or a
Lender:

    

    To
such Lender’s address or telecopy number, as applicable, set forth on its
signature page hereto or in the applicable Assignment and
Assumption.

    

    or,
as to each party at such other address as shall be designated by such party in a
written notice to the other parties delivered in compliance with this Section;
provided, a Lender shall only be required to give notice of any such other
address to the Agent and the Borrower.  All such notices and other
communications shall be effective (i) if mailed, 72 hours after such notice
or communication is deposited in the mail with appropriate first class postage,
addressed appropriately in accordance with this Section; (ii) if
telecopied, when transmitted; or (iii) if hand delivered, when
delivered.  Notwithstanding the immediately preceding sentence, all
notices or communications to the Agent or any Lender under Article II.
shall be effective only when actually received.  Neither the Agent nor
any Lender shall incur any liability to the Borrower (nor shall the Agent incur
any liability to the Lenders) for acting upon any telephonic notice referred to
in this Agreement which the Agent or such Lender, as the case may be, believes
in 

      
        
           

        

        
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    good faith to
have been given by a Person authorized to deliver such notice or for otherwise
acting in good faith hereunder.

      

      (b)           Electronic Document
Delivery.  Documents required to be delivered pursuant to the
Loan Documents may be delivered by electronic communication and delivery,
including, the Internet, e-mail or intranet websites to which the Agent and each
Lender have access (including a commercial, third-party website such as www.sec.gov/edgar/searchedgar/webusers.htm
or a website sponsored or hosted by the Agent or the Borrower); provided, however, that the
foregoing shall not apply to notices to any Lender (or the Issuing Bank)
(i) pursuant to Article II or (ii) if such Lender has not notified the
Agent and the Borrower that such Lender cannot or does not want to receive
electronic communications.  Documents delivered electronically shall
be deemed to have been delivered twenty-four (24) hours after the date and time
on which the Agent or the Borrower posts such documents or the documents become
available on a commercial website and the Agent or the Borrower notifies each
Lender of said posting and provides
a link thereto; provided, however, if such
notice or other communication is not sent or posted during the normal business
hours of the recipient, said posting date and time shall be deemed to have
commenced as of  9:00 a.m. on the opening of business on the next
business day for the recipient.  Notwithstanding anything contained
herein, in every instance the Borrower shall be required to provide paper copies
of the certificate required by Section 9.3 to the Agent and shall deliver paper
copies of any documents to the Agent or to any Lender that requests such paper
copies until a written request to cease delivering paper copies is given by the
Agent or such Lender to the Borrower.  The Agent shall have no
obligation to request the delivery of or to maintain paper copies of any
documents delivered electronically, and in no event shall have any
responsibility to monitor compliance by the Borrower with any such request for
delivery.  Each Lender shall be solely responsible for requesting
delivery to it of paper copies and maintaining its paper or electronic
documents.

    

    

    
      Section 13.2.  Expenses.

    

     

    The Borrower agrees (a) to pay or
reimburse the Agent for all of its reasonable out-of-pocket costs and reasonable
expenses incurred in connection with the preparation, negotiation and execution
of, and any amendment, supplement or modification to, any of the Loan Documents
(including due diligence expense and reasonable travel expenses related to
closing), and the consummation of the transactions contemplated thereby,
including the reasonable fees and disbursements of counsel to the Agent and all
costs and expenses of the Agent in connection with the review of Properties for
inclusion in calculations of the Borrowing Base and the Agent’s other activities
under Article IV. and the reasonable fees and disbursements of counsel to
the Agent relating to all such activities, (b) to pay or reimburse the
Agent and the Lenders for all their costs and expenses incurred in connection
with the enforcement or preservation of any rights under the Loan Documents,
including the reasonable fees and disbursements of their respective counsel
(including the allocated fees and expenses of in-house counsel) and any payments
in indemnification or otherwise payable by the Lenders to the Agent pursuant to
the Loan Documents, (c) to pay, and indemnify and hold harmless the Agent and
the Lenders from, any and all recording and filing fees, if any, which may be
payable or determined to be payable in connection with the execution and
delivery of any of the Loan Documents, or consummation of any amendment,
supplement or modification of, or any waiver or consent under or in respect of,
any Loan Document and (d)  to the extent not already covered by any of the
preceding 

      
        
           

        

        
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    subsections, to
pay the fees and disbursements of counsel to the Agent and any Lender incurred
in connection with the representation of the Agent or such Lender in any matter
relating to or arising out of any bankruptcy or other proceeding of the type
described in Sections 11.1.(e) or 11.1.(f), including, without limitation
(i) any motion for relief from any stay or similar order, (ii) the
negotiation, preparation, execution and delivery of any document relating to the
Obligations and (iii) the negotiation and preparation of any
debtor-in-possession financing or any plan of reorganization of the Borrower or
any other Loan Party, whether proposed by the Borrower, such Loan Party, the
Lenders or any other Person, and whether such fees and expenses are incurred
prior to, during or after the commencement of such proceeding or the
confirmation or conclusion of any such proceeding.

     

    Section 13.3.  Stamp,
Intangible and Recording Taxes.

     

    The Borrower will pay any and all
stamp, excise, intangible, registration, recordation and similar taxes, fees or
charges and shall indemnify the Agent and each Lender against any and all
liabilities with respect to or resulting from any delay in the payment or
omission to pay any such taxes, fees or charges, which may be payable or
determined to be payable in connection with the execution, delivery, recording,
performance or enforcement of this Agreement, the Notes and any of the other
Loan Documents, the amendment, supplement, modification or waiver of
or  consent under this Agreement, the Notes or any of the other Loan
Documents or the perfection of any rights or Liens under this Agreement, the
Notes or any of the other Loan Documents.

    

    
      Section 13.4.  Setoff.

    

     

    Subject to Section 3.3. and in
addition to any rights now or hereafter granted under Applicable Law and not by
way of limitation of any such rights, the Agent, each Lender and each
Participant is hereby authorized by the Borrower, at any time or from time to
time while an Event of Default exists, without notice to the Borrower or to any
other Person, any such notice being hereby expressly waived, but in the case of
a Lender or a Participant subject to receipt of the prior written consent of the
Agent and the Requisite Lenders exercised  in their sole discretion,
to set off and to appropriate and to apply any and all deposits (general or
special, including, but not limited to, indebtedness evidenced by certificates
of deposit, whether matured or unmatured) and any other indebtedness at any time
held or owing by the Agent, such Lender or any affiliate of the Agent or such
Lender, to or for the credit or the account of the Borrower against and on
account of any of the Obligations, irrespective of whether or not any or all of
the Loans and all other Obligations have been declared to be, or have otherwise
become, due and payable as permitted by Section 11.2., and although such
obligations shall be contingent or unmatured.

    

    
      Section 13.5.  Litigation;
Jurisdiction; Other Matters; Waivers.

    

     

    (a)           EACH
PARTY HERETO ACKNOWLEDGES THAT ANY DISPUTE OR CONTROVERSY BETWEEN OR AMONG THE
BORROWER, THE AGENT OR ANY OF THE LENDERS WOULD BE BASED ON DIFFICULT AND
COMPLEX ISSUES OF LAW AND FACT AND WOULD RESULT IN DELAY AND EXPENSE TO THE
PARTIES.  ACCORDINGLY, TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH
OF THE LENDERS, THE AGENT AND THE BORROWER HEREBY WAIVES ITS RIGHT TO A

      
        
           

        

        
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    TRIAL BY JURY
IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE IN ANY COURT OR TRIBUNAL IN
WHICH AN ACTION MAY BE COMMENCED BY OR AGAINST ANY PARTY HERETO ARISING OUT OF
THIS AGREEMENT, THE NOTES, OR ANY OTHER LOAN DOCUMENT OR BY REASON OF ANY OTHER
SUIT, CAUSE OF ACTION OR DISPUTE WHATSOEVER BETWEEN OR AMONG THE BORROWER, THE
AGENT OR ANY OF THE LENDERS OF ANY KIND OR NATURE.

      

      (b)           EACH
OF THE BORROWER, THE AGENT AND EACH LENDER HEREBY AGREES THAT THE FEDERAL
DISTRICT COURT OF THE NORTHERN DISTRICT OF CALIFORNIA OR, AT THE OPTION OF THE
AGENT, ANY STATE COURT LOCATED IN SAN FRANCISCO, CALIFORNIA, SHALL HAVE
JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OR AMONG THE
BORROWER, THE
AGENT OR ANY OF THE LENDERS, PERTAINING DIRECTLY OR INDIRECTLY TO THIS
AGREEMENT, THE LOANS AND LETTERS OF CREDIT, THE NOTES OR ANY OTHER LOAN DOCUMENT
OR TO ANY MATTER ARISING HEREFROM OR THEREFROM.  THE BORROWER AND EACH
OF THE LENDERS EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN
ANY ACTION OR PROCEEDING COMMENCED IN SUCH COURTS.  THE BORROWER
HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS AND COMPLAINT, OR OTHER PROCESS OR
PAPERS ISSUED THEREIN, AND AGREES THAT SERVICE OF SUCH SUMMONS AND COMPLAINT, OR
OTHER PROCESS OR PAPERS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO
THE BORROWER AT ITS ADDRESS FOR NOTICES PROVIDED FOR HEREIN.  SHOULD
THE BORROWER FAIL TO APPEAR OR ANSWER ANY SUMMONS, COMPLAINT, PROCESS OR PAPERS
SO SERVED WITHIN THIRTY DAYS AFTER THE MAILING THEREOF, THE BORROWER SHALL BE
DEEMED IN DEFAULT AND AN ORDER AND/OR JUDGMENT MAY BE ENTERED AGAINST IT AS
DEMANDED OR PRAYED FOR IN SUCH SUMMONS, COMPLAINT, PROCESS OR
PAPERS.  EACH PARTY FURTHER WAIVES ANY OBJECTION THAT IT MAY NOW OR
HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT
OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT FORUM AND EACH
AGREES NOT TO PLEAD OR CLAIM THE SAME.  THE CHOICE OF FORUM SET FORTH
IN THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE THE BRINGING OF ANY ACTION BY
THE AGENT OR ANY LENDER OR THE ENFORCEMENT BY THE AGENT OR ANY LENDER OF ANY
JUDGMENT OBTAINED IN SUCH FORUM IN ANY OTHER APPROPRIATE
JURISDICTION.

    

    

    (c)           THE
PROVISIONS OF THIS SECTION HAVE BEEN CONSIDERED BY EACH PARTY WITH THE ADVICE OF
COUNSEL AND WITH A FULL UNDERSTANDING OF THE LEGAL CONSEQUENCES THEREOF, AND
SHALL SURVIVE THE PAYMENT OF THE LOANS AND ALL OTHER AMOUNTS PAYABLE HEREUNDER
OR UNDER THE OTHER LOAN DOCUMENTS, THE TERMINATION OR EXPIRATION OF ALL LETTERS
OF CREDIT AND THE TERMINATION OF THIS AGREEMENT.

    

    

      
        
           

        

        
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        Section 13.6.  Successors
and Assigns.

      

       

      (a)           Generally.  The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns, except that the
Borrower may not assign or otherwise transfer any of is rights under this
Agreement without the prior written consent of all the Lenders (and any such
assignment or transfer to which all of the Lenders have not consented shall be
void).

      

      (b)           Participations.  Any
Lender may at any time grant to an affiliate of such Lender, or one or more
banks or other financial institutions (each a “Participant”) participating
interests in its Commitment or the Obligations owing to such
Lender.  Except as otherwise provided in Section 13.4., no
Participant shall have any rights or benefits under this Agreement or any other
Loan Document.  In the event of any such grant by a Lender of a
participating interest to a Participant, such Lender shall remain responsible
for the performance of it obligations hereunder, and
the Borrower and the Agent shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this
Agreement.  Any agreement pursuant to which any Lender may grant such
a participating interest shall provide that such Lender shall retain the sole
right and responsibility to enforce the obligations of the Borrower hereunder
including, without limitation, the right to approve any amendment, modification
or waiver of any provision of this Agreement; provided however, such Lender may
agree with the Participant that it will not, without the consent of the
Participant, agree to (i) increase such Lender’s Commitment,
(ii) extend the date fixed for the payment of principal on the Loans or
portions thereof  owing to such Lender, or (iii) reduce the rate
at which interest is payable thereon.  An assignment or other transfer
which is not permitted by subsection (c) or (d) below shall be given effect for
purposes of this Agreement only to the extent of a participating interest
granted in accordance with this subsection (b).  The Borrower agrees
that each Participant shall be entitled to the benefits of
Sections 3.11.(a) and (b) only to the same extent as if it were a Lender
and had acquired its interest by assignment pursuant to Section 13.6.(c);
provided that such Participant agrees to be subject to Section
3.11.(c)  as though it were a Lender.  Notwithstanding the
foregoing, a Participant shall not be entitled to receive any greater payment
under Sections 3.11.(a) and (b) than the applicable Lender would have been
entitled to receive with respect to the participation sold to such
Participant.

    

    

    (c)           Assignments.  Any
Lender may with the prior written consent of the Agent and the Borrower (which
consent in each case, shall not be unreasonably withheld) at any time assign to
one or more Eligible Assignees (each an “Assignee”) all or a portion of its
rights and obligations under this Agreement and the Notes; provided, however,
(i) no such consent by the Borrower shall be required (x) if a Default
or Event of Default shall exist or (y) in the case of an assignment to
another Lender or an affiliate of another Lender; (ii) any partial
assignment shall be in an amount at least equal to $10,000,000 and after giving
effect to such assignment the assigning Lender retains a Commitment, or if the
Commitments have been terminated, holds Notes having an aggregate outstanding
principal balance, of at least $10,000,000; and (iii) each such assignment
shall be effected by means of an Assignment and Assumption
Agreement.  Upon execution and delivery of such instrument and payment
by such Assignee to such transferor Lender of an amount equal to the purchase
price agreed between such transferor Lender and such Assignee, such Assignee
shall be deemed to be a Lender party to this Agreement and shall have all the
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    forth in such
Assignment and Assumption Agreement, and the transferor Lender shall be released
from its obligations hereunder to a corresponding extent, and no further consent
or action by any party shall be required.  Upon the consummation of
any assignment pursuant to this subsection (c), the transferor Lender, the Agent
and the Borrower shall make appropriate arrangement so the new Notes are issued
to the Assignee and such transferor Lender, as appropriate and such transferor
Lender shall promptly deliver after such assignment its cancelled Notes to
Borrower.  In connection with any such assignment, the transferor
Lender shall pay to the Agent an administrative fee for processing such
assignment in the amount of $4,500.  Anything in this Section to the
contrary notwithstanding, no Lender may assign or participate any interest in
any Loan held by it hereunder to the Borrower, or any of its respective
affiliates or Subsidiaries.

     

    (d)           Designated
Lenders.  Any Lender (each, a “Designating Lender”) may at any
time while the Borrower or the Parent, as the case may be, has been assigned an
Investment Grade Rating from either S&P or Moody’s designate one Designated
Lender to fund Bid Rate Loans on behalf of such Designating Lender subject to
the terms of this subsection (d) and the provisions in the immediately
preceding subsections (b) and (c) shall not apply to such
designation.  No Lender may designate more than one Designated
Lender.  The parties to each such designation shall execute and
deliver to the Agent for its acceptance a Designation Agreement.  Upon
such receipt of an appropriately com­pleted Designation Agreement executed
by a Designating Lender and a designee representing that it is a Designated
Lender, the Agent will accept such Designation Agreement and give prompt notice
thereof to the Borrower, whereupon, (i) the Borrower shall execute and
de­liver to the Designating Lender a Designated Lender Note payable to the
order of the Designated Lender, (ii) from and after the effective date
specified in the Designation Agreement, the Designated Lender shall become a
party to this Agreement with a right to make Bid Rate Loans on behalf of its
Designating Lender pursuant to Section 2.2. after the Borrower has accepted
a Bid Rate Loan (or portion thereof) of the Designating Lender, and
(iii) the Designated Lender shall not be required to make payments with
respect to any obligations in this Agreement except to the extent of excess cash
flow of such Designated Lender which is not otherwise required to repay
obligations of such Designated Lender which are then due and payable; provided,
however, that regardless of such designation and assumption by the Designated
Lender, the Designating Lender shall be and remain obligated to the Borrower,
the Agent and the Lenders for each and every of the obligations of the
Designating Lender and its related Designated Lender with respect to this
Agreement, including, without limitation, any indemnification obligations
un­der Section 12.7. and any sums otherwise payable to the Borrower by
the Designated Lender.  Each Designating Lender shall serve as the
Agent of the Designated Lender and shall on behalf of, and to the exclusion of,
the Designated Lender: (i) receive any and all payments made for the
benefit of the Designated Lender and (ii) give and receive all
communications and notices and take all actions hereunder, including, without
limitation, votes, approvals, waivers, 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 Agent for the Designated Lender and shall not be
signed by the Designated Lender on its own behalf and shall be binding on the
Designated Lender to the same extent as if signed by the Designated Lender on
its own behalf.  The Borrower, the Agent and the Lenders may rely
thereon without any requirement that the Designated Lender sign or acknowledge
the same.  No Designated Lender may assign or transfer 

      
        
           

        

        
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    all or any
portion of its interest hereunder or under any other Loan Document, other than
assign­ments to the Designating Lender which originally designated such
Designated Lender.  The Borrower, the Lenders and the Agent each
hereby agrees that it will not institute against any Designated Lender or join
any other Person in instituting against any Designated Lender any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding under any
federal or state bankruptcy or similar law, until the later to occur of
(x) one year and one day after the payment in full of the latest maturing
commercial paper note issued by such Designated Lender and (y) the
Termination Date.  In connection with any such designation the
Designating Lender shall pay to the Agent an administrative fee for processing
such designation in the amount of $2,000.

     

    (e)           Federal Reserve Bank
Assignments.  In addition to the assignments and participations
permitted under the foregoing provisions of the Section, and without the need to
comply with any of the formal or procedural requirements of this Section, any
Lender may at any time and from time to time, pledge and assign all or any
portion of its rights under all or any of the Loan Documents to a Federal
Reserve Bank; provided that no such pledge or assignment shall release such
assigning Lender from its obligation thereunder.

    

    (f)           Information to Assignee,
Etc.  A Lender may furnish any information concerning the
Borrower, any Subsidiary or any other Loan Party in the possession of such
Lender from time to time to Assignees and Participants (including prospective
Assignees and Participants).

    

    
      Section 13.7.  Amendments
and Waivers.

    

     

    (a)           Generally.  Except
as otherwise expressly provided in this Agreement, (i) any consent or
approval required or permitted by this Agreement or in any Loan Document to be
given by the Lenders may be given, (ii) any term of this Agreement or of
any other Loan Document (other than any fee letter solely between the Borrower
and the Agent) may be amended, (iii) the performance or observance by the
Borrower or any other Loan Party of any terms of this Agreement or such other
Loan Document (other than any fee letter solely between the Borrower and the
Agent), and (iv) the continuance of any Default or Event of Default may be
waived (either generally or in a particular instance and either retroactively or
prospectively) with, but only with, the written consent of the Requisite Lenders
(or the Agent at the written direction of the Requisite Lenders), and, in the
case of an amendment to any Loan Document, the written consent of each Loan
Party which is party thereto.  Notwithstanding the previous sentence,
the Agent, shall be authorized on behalf of all the Lenders to use its
reasonable discretion, without the necessity of any notice to, or further
consent from, any Lender, to waive the imposition of the late charges provided
in Section 2.8., up to a maximum of 2 times per calendar year.

    

    (b)           Certain Requisite Lender
Consents.  Notwithstanding the foregoing, no amendment, waiver
or consent shall, unless in writing, and signed by the Requisite Lenders (which
must include the Lender then acting as Agent), do any of the
following:

    

    (i)           amend
Section 10.1. or waive any Default or Event of Default occurring under
Section 11.1.(l); or

    
      
         

      

      
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      (ii)           modify
the definitions of the terms “Total Liabilities”, “Gross Asset Value” or
“Indebtedness” (or the definitions used in such definition or the percentages or
rates used in the calculation thereof); or

      

      (iii)           approve
any Unencumbered Pool Property pursuant to Section 4.1.(c); or

      

      (iv)           rescind
and annul any acceleration as provided in Section 11.2.(e) (including, without
limitation, any optional acceleration declared by the Agent and Requisite
Lenders pursuant to Section 11.2.(a)(ii)).

    (c)           Unanimous
Consent.  Notwithstanding the foregoing, no amendment, waiver
or consent shall, unless in writing, and signed by all of the Lenders (or the
Agent at the written direction of the Lenders), do any of the
following:

    

    (i)           increase
the Commitments of the Lenders (excluding any increase as a result of an
assignment of Commitments permitted under Section 13.6.) or subject the Lenders
to any additional obligations except for any increases contemplated under
Section 2.15.;

    

    (ii)           reduce
the principal of, or interest rates that have accrued or that will be charged on
the outstanding principal amount of, any Loans or other
Obligations;

    

    (iii)           reduce
the amount of any Fees payable to the Lenders hereunder;

    

    (iv)           postpone
any date fixed for any payment of principal of, or interest on, any Loans or for
the payment of Fees or any other Obligations;

    

    (v)           change
the Pro Rata Shares (excluding any change as a result of an assignment of
Commitments permitted under Section 13.6. or an increase of Commitments
effected pursuant to Section 2.15.);

    

    (vi)           amend
this Section or amend the definitions of the terms used in this Agreement or the
other Loan Documents insofar as such definitions affect the substance of this
Section;

    

    (vii)           modify
the definition of the term “Requisite Lenders” or modify in any other manner the
number or percentage of the Lenders required to make any determinations or waive
any rights hereunder or to modify any provision hereof;

    

    (viii)                      release
any Guarantor from its obligations under the Guaranty (except for releases of
Persons not required to be a Guarantor under Section 8.14.);

    

    (ix)           modify
the definition of the terms  “Maximum Loan Availability”, “Borrowing
Base”, “Unencumbered Pool Value” or “Unsecured Liabilities”; or

    

    (x)           waive
a Default or Event of Default under Section 11.1.(a).

    
      
         

      

      
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      (d)           Amendment of Agent’s Duties,
Etc.  No amendment, waiver or consent unless in writing and
signed by the Agent, in addition to the Lenders required hereinabove to take
such action, shall affect the rights or duties of the Agent under this Agreement
or any of the other Loan Documents.  Any amendment, waiver or consent
relating to Section 2.3. or the obligations of the Swingline Lender under
this Agreement or any other Loan Document shall, in addition to the Lenders
required hereinabove to take such action, require the written consent of the
Swingline Lender.  No waiver shall extend to or affect any obligation
not expressly waived or impair any right consequent thereon and any amendment,
waiver or consent shall be effective only
in the specific instance and for the specific purpose set forth
therein.  No course of dealing or delay or omission on the part of the
Agent or any Lender in exercising any right shall operate as a waiver thereof or
otherwise be prejudicial thereto.  Any Event of Default occurring
hereunder shall continue to exist until such time as such Event of Default is
waived in writing in accordance with the terms of this Section, notwithstanding
any attempted cure or other action by the Borrower, any other Loan Party or any
other Person subsequent to the occurrence of such Event of
Default.  Except as otherwise explicitly provided for herein or in any
other Loan Document, no notice to or demand upon the Borrower shall entitle the
Borrower to other or further notice or demand in similar or other
circumstances.

    

    

    
      Section 13.8.  Nonliability
of Agent and Lenders.

    

     

    The relationship between the Borrower,
on the one hand, and the Lenders and the Agent, on the other hand, shall be
solely that of borrower and lender.  Neither the Agent nor any Lender
shall have any fiduciary responsibilities to the Borrower and no provision in
this Agreement or in any of the other Loan Documents, and no course of dealing
between or among any of the parties hereto, shall be deemed to create any
fiduciary duty owing by the Agent or any Lender to any Lender, the Borrower, any
Subsidiary or any other Loan Party.  Neither the Agent nor any Lender
undertakes any responsibility to the Borrower to review or inform the Borrower
of any matter in connection with any phase of the Borrower’s business or
operations.

    

    
      Section 13.9.  Confidentiality.

    

     

    Except as otherwise provided by
Applicable Law, the Agent and each Lender shall utilize all non-public
information obtained pursuant to the requirements of this Agreement which has
been identified as confidential or proprietary by the Borrower in accordance
with its customary procedure for handling confidential information of this
nature and in accordance with safe and sound banking practices but in any event
may make disclosure: (a) to any of their respective affiliates (provided
any such affiliate shall agree to keep such information confidential in
accordance with the terms of this Section); (b) as reasonably requested by
any bona fide Assignee, Participant or other transferee in connection with the
contemplated transfer of any Commitment or participations therein as permitted
hereunder (provided they shall agree to keep such information confidential in
accordance with the terms of this Section); (c) as required or requested by
any Governmental Authority or representative thereof or pursuant to legal
process or in connection with any legal proceedings; (d) to the Agent’s or
such Lender’s independent auditors and other professional advisors (provided
they shall be notified of the confidential nature of the information);
(e) if an Event of Default exists, to any other Person, in connection with
the exercise by the Agent or the Lenders of rights hereunder or under any of the
other Loan 

      
        
           

        

        
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    Documents; and
(f) to the extent such information (x) becomes publicly available
other than as a result of a breach of this Section or (y) becomes available
to the Agent or any Lender on a nonconfidential basis from a source other than
the Borrower or any Affiliate.

      

      
        Section 13.10.  Indemnification.

      

       

      (a)           The
Borrower shall and hereby agrees to indemnify, defend and hold harmless the
Agent, any affiliate of the Agent and each of the Lenders and their respective
directors, officers, shareholders, agents, employees and counsel (each referred
to herein as an “Indemnified Party”) from
and against any and all losses, costs, claims, damages, liabilities,
deficiencies, judgments or expenses of every kind and nature (including, without
limitation, amounts paid in settlement, court costs and the fees and
disbursements of counsel incurred in connection with any litigation,
investigation, claim or proceeding or any advice rendered in connection
therewith, but excluding losses, costs, claims, damages, liabilities,
deficiencies, judgments or expenses indemnification in respect of which is
specifically covered by Section 3.11. or 5.1. or expressly excluded from
the coverage of such Sections) incurred by an Indemnified Party in connection
with, arising out of, or by reason of, any suit, cause of action, claim,
arbitration, investigation or settlement, consent decree or other proceeding
(the foregoing referred to herein as an “Indemnity Proceeding”) which is in any
way related directly or indirectly to: (i) this Agreement or any other Loan
Document or the transactions contemplated thereby; (ii) the making of any
Loans hereunder; (iii) any actual or proposed use by the Borrower of the
proceeds of the Loans; (iv) the Agent’s or any Lender’s entering into this
Agreement; (v) the fact that the Agent and the Lenders have established the
credit facility evidenced hereby in favor of the Borrower; (vi) the fact
that the Agent and the Lenders are creditors of the Borrower and have or are
alleged to have information regarding the financial condition, strategic plans
or business operations of the Borrower and the Subsidiaries; (vii) the fact
that the Agent and the Lenders are material creditors of the Borrower and are
alleged to influence directly or indirectly the business decisions or affairs of
the Borrower and the Subsidiaries or their financial condition; (viii) the
exercise of any right or remedy the Agent or the Lenders may have under this
Agreement or the other Loan Documents; provided, however, that the Borrower
shall not be obligated to indemnify any Indemnified Party for any acts or
omissions of such Indemnified Party in connection with matters described in this
clause (viii) that constitute gross negligence or willful misconduct of
such Indemnified Party; or (ix) any violation or non-compliance by the
Borrower or any Subsidiary of any Applicable Law (including any Environmental
Law) including, but not limited to, any Indemnity Proceeding commenced by
(A) the Internal Revenue Service or state taxing authority or (B) any
Governmental Authority or other Person under any Environmental Law, including
any Indemnity Proceeding commenced by a Governmental Authority or other Person
seeking remedial or other action to cause the Borrower or its Subsidiaries (or
its respective properties) (or the Agent and/or the Lenders as successors to the
Borrower) to be in compliance with such Environmental Laws.

    

    

    (b)           The
Borrower’s indemnification obligations under this Section shall apply to all
Indemnity Proceedings arising out of, or related to, the foregoing whether or
not an Indemnified Party is a named party in such Indemnity
Proceeding.  In this connection, this indemnification shall cover all
costs and expenses of any Indemnified Party in connection with any deposition of
any Indemnified Party or compliance with any subpoena (including any subpoena
requesting the production of documents).  This indemnification shall,
among other things, apply to any Indemnity Proceeding commenced by other
creditors of the Borrower or any Subsidiary, any 

      
        
           

        

        
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    shareholder of
the Borrower or any Subsidiary (whether such shareholder(s) are prosecuting such
Indemnity Proceeding in their individual capacity or derivatively on behalf of
the Borrower), any account debtor of the Borrower or any Subsidiary or by any
Governmental Authority.

      

      (c)           This
indemnification shall apply to any Indemnity Proceeding arising during the
pendency of any bankruptcy proceeding filed by or against the Borrower and/or
any Subsidiary.

       

    

    (d)           All
out-of-pocket fees and expenses of, and all amounts paid to third-persons by, an
Indemnified Party shall be advanced by the Borrower at the request of such
Indemnified Party notwithstanding any claim or assertion by the Borrower that
such Indemnified Party is not entitled to indemnification hereunder upon receipt
of an undertaking by such Indemnified Party that such Indemnified Party will
reimburse the Borrower if it is actually and finally determined by a court of
competent jurisdiction that such Indemnified Party is not so entitled to
indemnification hereunder.

    

    (e)           An
Indemnified Party may conduct its own investigation and defense of, and may
formulate its own strategy with respect to, any Indemnity Proceeding covered by
this Section and, as provided above, all costs and expenses incurred by such
Indemnified Party shall be reimbursed by the Borrower.  No action
taken by legal counsel chosen by an Indemnified Party in investigating or
defending against any such Indemnity Proceeding shall vitiate or in any way
impair the obligations and duties of the Borrower hereunder to indemnify and
hold harmless each such Indemnified Party; provided, however, that (i) if
the Borrower is required to indemnify an Indemnified Party pursuant hereto and
(ii) the Borrower has provided evidence reasonably satisfactory to such
Indemnified Party that the Borrower has the financial wherewithal to reimburse
such Indemnified Party for any amount paid by such Indemnified Party with
respect to such Indemnity Proceeding, such Indemnified Party shall not settle or
compromise any such Indemnity Proceeding without the prior written consent of
the Borrower (which consent shall not be unreasonably withheld or
delayed).

    

    (f)           If
and to the extent that the obligations of the Borrower hereunder are
unenforceable for any reason, the Borrower hereby agrees to make the maximum
contribution to the payment and satisfaction of such obligations which is
permissible under Applicable Law.

    

    (g)           The
Borrower’s obligations hereunder shall survive any termination of this Agreement
and the other Loan Documents and the payment in full in cash of the Obligations,
and are in addition to, and not in substitution of, any of the other obligations
set forth in this Agreement or any other Loan Document to which it is a
party.

    

    
      Section 13.11.  Termination;
Survival.

    

     

    At such time as (a) all of the
Commitments have been terminated, (b) none of the Lenders is obligated any
longer under this Agreement to make any Loans and (c) all Obligations
(other than obligations which survive as provided in the following sentence)
have been paid and satisfied in full, this Agreement shall terminate. The
indemnities to which the Agent and the Lenders are entitled under the provisions
of Sections 3.11., 5.1., 5.4., 12.7., 13.2. and 13.10. and any other
provision of this Agreement and the other Loan Documents, and the provisions of
Section 13.5., shall continue in full force and effect and shall protect
the Agent and the Lenders 

      
        
           

        

        
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    (i) notwithstanding
any termination of this Agreement, or of the other Loan Documents, against
events arising after such termination as well as before and (ii) at all
times after any such party ceases to be a party to this Agreement with respect
to all matters and events existing on or prior to the date such party ceased to
be a party to this Agreement.

     

    Section 13.12.  Severability
of Provisions.

     

    Any provision of this Agreement which
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective only to the extent of such prohibition or
unenforceability without invalidating the remainder of such provision or the
remaining provisions or affecting the validity or enforceability of such
provision in any other jurisdiction.

    

    
      Section 13.13.  GOVERNING
LAW.

    

     

    THIS AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE
TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

    

    
      Section 13.14.  USA
Patriot Act Notice; Compliance.

    

     

    The USA Patriot Act of 2001 (Public Law
107-56) and federal regulations issued with respect thereto require all
financial institutions to obtain, verify and record certain information that
identifies individuals or business entities which open an “account” with such
financial institution.  Consequently, the Agent (for itself and/or as
agent for all Lenders hereunder) may from time-to-time request, and Borrower
shall provide to the Agent, Borrower’s name, address, tax identification number
and/or such other identification information as shall be necessary for the Agent
to comply with federal law.  An “account” for this purpose may
include, without limitation, a deposit account, cash management service, a
transaction or asset account, a credit account, a loan or other extension of
credit, and/or other financial services product.

    

    
      Section 13.15.  Counterparts.

    

     

    This Agreement and any amendments,
waivers, consents or supplements may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed an original, but all of which
counterparts together shall constitute but one and the same
instrument.

    

    
      Section 13.16.  Obligations
with Respect to Loan Parties.

    

     

    The obligations of the Borrower to
direct or prohibit the taking of certain actions by the other Loan Parties as
specified herein shall be absolute and not subject to any defense the Borrower
may have that the Borrower does not control such Loan Parties.

    

    
      Section 13.17.  Independence
of Covenants.

    

     

    All covenants hereunder shall be given
in any jurisdiction independent effect so that if a particular action or
condition is not permitted by any of such covenants, the fact that it would be

      
        
           

        

        
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    permitted by an
exception to, or be otherwise within the limitations of, another covenant shall
not avoid the occurrence of a Default or an Event of Default if such action is
taken or condition exists.

     

    Section 13.18.  Limitation
of Liability.

     

    Neither the Agent nor any Lender, nor
any affiliate, officer, director, employee, attorney, or agent of the Agent or
any Lender shall have any liability with respect to, and the Borrower hereby
waives, releases, and agrees not to sue any of them upon, any claim for any
special, indirect, incidental, or consequential damages suffered or incurred by
the Borrower in connection with, arising out of, or in any way related to, this
Agreement or any of the other Loan Documents, or any of the transactions
contemplated by this Agreement or any of the other Loan
Documents.  The Borrower hereby waives, releases, and agrees not to
sue the Agent or any Lender or any of the Agent’s or any Lender’s affiliates,
officers, directors, employees, attorneys, or agents for punitive damages in
respect of any claim in connection with, arising out of, or in any way related
to, this Agreement or any of the other Loan Documents, or any of the
transactions contemplated by this Agreement or financed hereby.

    

    
      Section 13.19.  Entire
Agreement.

    

     

    This Agreement, the Notes, and the
other Loan Documents referred to herein embody the final, entire agreement among
the parties hereto and supersede any and all prior commitments, agreements,
representations, and understandings, whether written or oral, relating to the
subject matter hereof and thereof and may not be contradicted or varied by
evidence of prior, contemporaneous, or subsequent oral agreements or discussions
of the parties hereto.  There are no oral agreements among the parties
hereto.

    

    
      Section 13.20.  Construction.

    

     

    The Agent, the Borrower and each Lender
acknowledge that each of them has had the benefit of legal counsel of its own
choice and has been afforded an opportunity to review this Agreement and the
other Loan Documents with its legal counsel and that this Agreement and the
other Loan Documents shall be construed as if jointly drafted by the Agent, the
Borrower and each Lender.

    
    

     

    
      Section
13.21.  No
Novation.

    

     

    THE PARTIES HERETO HAVE ENTERED INTO
THIS AGREEMENT SOLELY TO AMEND AND RESTATE THE TERMS OF THE EXISTING CREDIT
AGREEMENT.  THE PARTIES DO NOT INTEND THIS AGREEMENT NOR THE
TRANSACTIONS CONTEMPLATED HEREBY TO BE, AND THIS AGREEMENT AND THE TRANSACTIONS
CONTEMPLATED HEREBY SHALL NOT BE CONSTRUED TO BE, A NOVATION OF ANY OF THE
OBLIGATIONS OWING BY THE BORROWER UNDER OR IN CONNECTION WITH THE EXISTING
CREDIT AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS (AS DEFINED IN THE EXISTING
CREDIT AGREEMENT).

    

    
      
        
        

      

      
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    [Signatures
on Following Pages]

    
      
         

      

      
        - 98
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    IN WITNESS WHEREOF, the parties hereto
have caused this Credit Agreement to be duly executed by their respective
authorized officers as of the day and year first above written.

    

    

    BORROWER:

    

    
      	
            	
               
      

            	
              REALTY
      INCOME CORPORATION

            

    

    

    

    By: ____________________________                                                          

         Name:
_______________________                                                           

         Title:
_________________________                                                           

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    [Signatures
Continued on Next Page]

    
      
         

      

      
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    [Signature Page to Credit Agreement of
Realty Income Corporation]

    

    

    
      	
               
      

            	
              WELLS
      FARGO BANK, NATIONAL ASSOCIATION, as Agent, as a Lender and as Swingline
      Lender

            

    

    

    

    By:____________________________                                                           

         Name: ______________________                                                          

         Title: ________________________                                                          

    

    Commitment
Amount:

    

    $____________________

    

    

    Lending
Office (all Types of Loans) and

    Address for
Notices:

    

    401
B Street, Suite 1100

    San
Diego, CA 92101

    Attn:  Cara
D’Angelo

    Telecopier:     (619)
699-3105

    Telephone:     
(619) 699-3025

    

    

    

    [Signatures
Continued on Next Page]

    

    

    
      
         

      

      
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    [Signature Page to Credit Agreement of
Realty Income Corporation]

    

    

    

    
      	
               
      

            	
              ________________________,
      as Lender

            

    

    

    

    By:
______________________________

         Name:
_________________________

         Title: __________________________                                                          

    

    Commitment
Amount:

    

    $_______________

    

    

    Lending
Office (all Types of Loans) and

    Address for Notices Relating to
Funding:

    

    ________________________

    ________________________

    Attn:
___________________

    Telecopier:      (___)
___-_____

    Telephone:      (___)
___-_____

    

    Address for Notices Relating to All
Other Matters:

    

    ________________________

    ________________________

    Attn:
___________________

    Telecopier:       (___)
___-_____

    Telephone:       (___)
___-_____

    
- 101
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