Document:

EXHIBIT 10.22
 
BERTUCCI’S CORPORATION AMENDED AND RESTATED 1997 EQUITY INCENTIVE PLAN
(f/k/a NE Restaurant Company, Inc. 1997 Equity Incentive Plan)
 
SECTION 1. PURPOSE
 
The purpose of the Bertucci’s Corporation 1997 Equity Incentive Plan (the “Plan”) is to attract and retain key employees, directors, stockholders, advisors and consultants, to provide an incentive for them to assist Bertucci’s Corporation (the “Corporation”) and its subsidiaries to achieve long-range performance goals, and to enable them to participate in the long-term growth of the Corporation.
 
SECTION 2. DEFINITIONS
 
(a) “Affiliate” means any business entity in which the Corporation owns directly or indirectly 50% or more of the total combined voting power or has a significant financial interest as determined by the Board.
 
(b) “Annual Meeting” means the annual meeting of shareholders or special meeting in lieu of annual meeting of shareholders at which one or more directors are elected.
 
(c) “Award” means any Option, Stock Appreciation Right, Performance or Award Share, or Restricted Stock awarded under the Plan.
 
(d) “Award Share” means a share of Common Stock awarded to an employee, director, advisor or consultant without payment therefore.
 
(e) “Board” means the Board of Directors of the Corporation.
 
(f) “Code” means the Internal Revenue Code of 1986, as amended from time to time.
 
(g) “Committee” means a committee of not less than two members of the Board which may be appointed by the Board from time to time to administer the Plan.
 
(h) “Common Stock” or “Stock” means the Common Stock, par value $.01 per share, of the Corporation.
 
(i) “Corporation” means Bertucci’s Corporation.
 
(j) “Designated Beneficiary” means the beneficiary designated by a Participant, in a manner determined by the Board, to receive amounts due and/or exercise rights of the Participant in the event of the Participant’s death. In the absence of an effective designation by a Participant, Designated Beneficiary shall mean the Participant’s estate.
 
(k) “Fair Market Value” means, with respect to Common Stock or any other property, the fair market value of such property as determined by the Board in good faith or in the manner established by the Board from time to time.
 
(l) “Nonqualified Stock Option” means an Option to purchase shares of Common Stock, awarded to a Participant under Section 6, which is not intended to meet the requirements of Section 422 of the Code or any successor provision.
 
(m) “Option” means a Nonqualified Stock Option.
 
(n) “Participant” means a person selected by the Board to receive an Award under the Plan.

 

 

(o) “Performance Cycle” or “Cycle” means the period of time selected by the Board during which performance is measured for the purpose of determining the extent to which an Award of Performance Shares has been earned.
 
(p) “Performance Shares” mean shares of Common Stock which may be earned by the achievement of performance goals, awarded to a Participant under Section 8.
 
(q) “Restricted Period” means the period of time selected by the Board during which an Award of Restricted Stock may be forfeited to or repurchased by the Corporation.
 
(r) “Restricted Stock” means shares of Common Stock subject to forfeiture or repurchase, awarded to a Participant under Section 9.
 
(s) “Stock Appreciation Right” or “SAR” means a right to receive any excess in value of shares of Common Stock over the reference price, awarded to a Participant under Section 7.
 
(t) “Stock Unit” means an Award of Common Stock and/or other rights granted as units that are valued in whole or in part by reference to, or otherwise based on, the value of Common Stock, awarded to a Participant under Section 10.
 
SECTION 3. ADMINISTRATION
 
The Board shall have authority to: (a) grant and amend Awards, (b) determine the terms and provisions of Awards and the agreements that evidence such Awards (which need not be identical); (c) adopt, alter and repeal such administrative rules, guidelines and practices governing the operation of the Plan as it shall from time to time consider advisable; and (d) to interpret the provisions of the Plan. The Board’s decisions shall be final and binding. The Board, in its discretion at any time, may appoint a Committee to administer the Plan. To the extent permitted by applicable law, the Board may delegate to the Committee the power to make Awards to Participants and all determinations under the Plan with respect thereto.
 
SECTION 4. ELIGIBILITY
 
 All employees, directors, stockholders, advisors and consultants of the Corporation or any Affiliate capable of contributing significantly to the successful performance of the Corporation, other than a person who has irrevocably elected not to be eligible, are eligible to be Participants in the Plan.
 
SECTION 5. STOCK AVAILABLE FOR AWARDS
 
(a) Subject to adjustment under subsection (b), the aggregate number of shares of Common Stock of the Corporation that may be issued pursuant to the Plan is 1,100,000.  If any Award in respect of shares of Common Stock expires or is terminated unexercised or is forfeited for any reason or settled in a manner that results in fewer shares outstanding than were initially awarded, including without limitation the surrender of shares in payment for the Award or any tax obligation thereon, the shares subject to such Award or so surrendered, as the case may be, to the extent of such expiration, termination, forfeiture or decrease, shall again be available for award under the Plan. Common Stock issued through the assumption or substitution of outstanding grants from an acquired corporation shall not reduce the shares available for Awards under the Plan. Shares issued under the Plan may consist in whole or in part of authorized but unissued shares or treasury shares.
 
(b) In the event that the Board determines that any stock dividend, extraordinary cash dividend, creation of a class of equity securities, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination, exchange of shares, issuance of warrants or rights offering to purchase Common Stock at a price substantially below fair market value, or other similar transaction affects the Common Stock such that an adjustment is required in order to preserve the benefits or potential benefits intended to be made available under the Plan, then the Board shall equitably adjust any or all of (i) the number and kind of shares in respect of which Awards may be made under the Plan, (ii) the number and kind of shares subject to outstanding Awards, and (iii) the award, exercise, repurchase or conversion price with respect to any of the foregoing, and if considered appropriate, the Board may make provision for a cash payment with

 

 

respect to an outstanding Award, provided that the number of shares subject to any Award shall always be a whole number.
 
SECTION 6. STOCK OPTIONS
 
(a) Subject to the provisions of the Plan, the Board may award Nonqualified Stock Options and determine the number of shares to be covered by each Option, the option price therefore and the conditions and limitations applicable to the exercise of the Option.
 
(b) The Board shall establish the option price for each share of Common Stock subject to an Option at the time each Option is awarded, which shall be no less than the Fair Market Value of a share of Common Stock.
 
(c) Each Option shall be exercisable at such times and subject to such terms and conditions as the Board may specify in the applicable Award or thereafter. The Board may impose such conditions with respect to the exercise of Options, including conditions relating to applicable federal or state securities laws, as it considers necessary or advisable.
 
(d) No shares shall be delivered pursuant to any exercise of an Option until payment in full of the option price therefore is received by the Corporation. Such payment may be made in whole or in part in cash or, to the extent permitted by the Board at or after the award of the Option, by delivery of a note or shares of Common Stock owned by the option holder, including Restricted Stock, valued at their Fair Market Value on the date of delivery, by the reduction of the shares of Common Stock that the option holder would be entitled to receive upon exercise of the Option, such shares to be valued at their Fair Market Value on the date of exercise, less their option price (a so-called “cashless exercise”), or such other lawful consideration as the Board may determine. In addition, an option holder may engage in a successive exchange (or series of exchanges) in which the shares of Common Stock that such option holder is entitled to receive upon the exercise of an Option may be simultaneously utilized as payment for the exercise of an additional Option or Options.
 
(e) The Board may provide for the automatic award of an Option upon the delivery of shares to the Corporation in payment of an Option for up to the number of shares so delivered.
 
SECTION 7. STOCK APPRECIATION RIGHTS
 
Subject to the provisions of the Plan, the Board may award SARs in tandem with an Option (at or after the award of the Option), or alone and unrelated to an Option. SARs in tandem with an Option shall terminate to the extent that the related Option is exercised, and the related Option shall terminate to the extent that the tandem SARs are exercised.
 
SECTION 8. PERFORMANCE SHARES
 
(a) Subject to the provisions of the Plan, the Board may award Performance Shares and determine the number of such shares for each Performance Cycle and the duration of each Performance Cycle. There may be more than one Performance Cycle in existence at any one time, and the duration of Performance Cycles may differ from each other. The payment value of Performance Shares shall be equal to the Fair Market Value of the Common Stock on the date the Performance Shares are earned or, in the discretion of the Board, on the date the Board determines that the Performance Shares have been earned.
 
(b) The Board shall establish performance goals for each Performance Cycle for the purpose of determining the extent to which Performance Shares awarded for such Performance Cycle are earned.  Such performance goals shall be determined by the Board, in its sole discretion. During any Performance Cycle, the Board may adjust the performance goals for such Performance Cycle as it deems equitable in recognition of unusual or non-recurring events affecting the Corporation, changes in applicable tax laws or accounting principles, or such other factors as the Board may determine.
 
(c) As soon as practicable after the end of a Performance Cycle, the Board shall determine the number of Performance Shares which have been earned on the basis of performance in relation to the established

 

 

performance goals. The payment values of earned Performance Shares shall be distributed to the Participant or, if the Participant has died, to the Participant’s Designated Beneficiary, as soon as practicable thereafter. The Board shall determine, at or after the time of award, whether payment values will be settled in whole or in part in cash or other property, including Common Stock or Awards.
 
SECTION 9. RESTRICTED STOCK
 
(a) Subject to the provisions of the Plan, the Board may award shares of Restricted Stock and determine the duration of the Restricted Period during which, and the conditions under which, the shares may be forfeited to or repurchased by the Corporation and the other terms and conditions of such Awards. Shares of Restricted Stock may be issued for no cash consideration or such minimum consideration as may be required by applicable law or such other consideration as may be determined by the Board.
 
(b) Shares of Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered, except as permitted by the Board, during the Restricted Period. Shares of Restricted Stock shall be evidenced in such manner as the Board may determine. Any certificates issued in respect of shares of Restricted Stock shall be registered in the name of the Participant and unless otherwise determined by the Board, deposited by the Participant, together with a stock power endorsed in blank, with the Corporation. At the expiration of the Restricted Period, the Corporation shall deliver such certificates to the Participant or if the Participant has died, to the Participant’s Designated Beneficiary.
 
SECTION 10. STOCK UNITS
 
(a) Subject to the provisions of the Plan, the Board may award Stock Units subject to such terms, restrictions, conditions, performance criteria, vesting requirements and payment rules as the Board shall determine.
 
(b) Shares of Common Stock awarded in connection with a Stock Unit Award shall be issued for no cash consideration or such minimum consideration as may be required by applicable law. Such shares of Common Stock may be designated as Award Shares by the Board.
 
SECTION 11. GENERAL PROVISIONS APPLICABLE TO AWARDS
 
(a) Documentation. Each Award under the Plan shall be evidenced by a written document delivered to the Participant specifying the terms and conditions thereof and containing such other terms and conditions not inconsistent with the provisions of the Plan as the Board considers necessary or advisable to achieve the purposes of the Plan or comply with applicable tax and regulatory laws and accounting principles.
 
(b) Board Discretion. Each type of Award may be made alone, in addition to or in relation to any other type of Award. The terms of each type of Award need not be identical, and the Board need not treat Participants uniformly. Except as otherwise provided by the Plan or a particular Award, any determination with respect to an Award may be made by the Board at the time of award or at any time thereafter.
 
(c) Settlement. The Board shall determine whether Awards are settled in whole or in part in cash, Common Stock, other securities of the Corporation, Awards or other property. The Board may permit a Participant to defer all or any portion of a payment under the Plan, including the crediting of interest on deferred amounts denominated in cash and dividend equivalents on amounts denominated in Common Stock.
 
(d) Dividends and Cash Awards. In the discretion of the Board, any Award under the Plan may provide the Participant with (i) dividends or dividend equivalents payable currently or deferred with or without interest, and (ii) cash payments in lieu of or in addition to an Award.
 
(e) Termination of Employment/Engagement. The Board shall determine the effect on an Award of the disability, death, retirement or other termination of employment or engagement of a Participant and the extent to which, and the period during which, the Participant’s legal representative, guardian or Designated Beneficiary may receive payment of an Award or exercise rights thereunder.

 

 

(f) Change in Control. In order to preserve a Participant’s rights under an Award in the event of a change in control of the Corporation, the Board in its discretion may, at the time an Award is made or at any time thereafter, take one or more of the following actions: (i) provide for the acceleration of any time period relating to the exercise or realization of the Award, (ii) provide for the purchase of the Award upon the Participant’s request for an amount of cash or other property that could have been received upon the exercise or realization of the Award had the Award been currently exercisable or payable, (iii) adjust the terms of the Award in a manner determined by the Board to reflect the change in control, (iv) cause the Award to be assumed, or new rights substituted therefore, by another entity, or (v) make such other provision as the Board may consider equitable and in the best interests of the Corporation (including, but not limited to, providing for the termination of any such Award immediately prior to the consummation of a change in control, provided that no such termination will be effective if the change in control is not consummated).
 
(g) Withholding. The Participant shall pay to the Corporation, or make provision satisfactory to the Board for payment of, any taxes required by law to be withheld in respect of Awards under the Plan no later than the date of the event creating the tax liability. In the Board’s discretion, such tax obligations may be paid in whole or in part in shares of Common Stock, including shares retained from the Award creating the tax obligation, valued at their Fair Market Value on the date of delivery. The Corporation and its Affiliates may, to the extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to the Participant.
 
(h) Amendment of Award. The Board may amend, modify or terminate any outstanding Award, including substituting therefore another Award of the same or a different type and changing the date of exercise or realization, provided that the Participant’s consent to such action shall be required unless the Board determines that the action, taking into account any related action, would not materially and adversely affect the Participant.
 

(i) Dissolution
or Liquidation. In the event of the proposed dissolution or liquidation of
the Corporation, the Board shall notify each Participant as soon as practicable
prior to the effective date of such proposed transaction.  The Board in its sole discretion may provide
for a Participant to have the right to exercise his or her Award until fifteen
(15) days prior to such transaction as to all of the shares of Common Stock
covered by the Option or Award, including shares as to which the Option or
Award would not otherwise be exercisable, which exercise may in the sole
discretion of the Board, be made subject to and conditioned upon the
consummation of such proposed transaction. 
In addition, the Board may provide that any Company repurchase option
applicable to any shares of Common Stock purchased upon exercise of an Option
or Award shall lapse as to all such shares of Common Stock, provided the
proposed dissolution and liquidation takes place at the time and in the manner
contemplated.

 

(j)
Parachute Payments and Parachute Awards. Notwithstanding the provisions
of Section 11(f), if, in connection with a change in control, a tax under Section 4999
of the Code would be imposed on the Participant (after taking into account the
exceptions set forth in Sections 280G(b)(4) and 280G(b)(5) of the
Code), then the number of Awards which shall become exercisable, realizable or
vested as provided in such Section shall be reduced (or delayed), to the
minimum extent necessary, so that no such tax would be imposed on the
Participant (the Awards not becoming so accelerated, realizable or vested, the “Parachute
Awards”); provided, however, that if the “aggregate present value” of the
Parachute Awards would exceed the tax that, but for this sentence, would be
imposed on the Participant under Section 4999 of the Code in connection
with the change in control, then the Awards shall become immediately
exercisable, realizable and vested without regard to the provisions of this
sentence. For purposes of the preceding sentence, the “aggregate present value”
of an Award shall be calculated on an after-tax basis (other than taxes imposed
by Section 4999 of the Code) and shall be based on economic principles
rather than the principles set forth under Section 280G of the Code and
the regulations promulgated thereunder. All determinations required to be made
under this Section 11(j) shall be made by the Board.

 

SECTION 12. MISCELLANEOUS
 
(a) No Right To Employment or Engagement. No person shall have any claim or right to be granted an Award, and the grant of an Award shall not be construed as giving a Participant the right to continued employment or engagement with the Corporation. The Corporation expressly reserves the right at any time

 

 

to dismiss a Participant free from any liability or claim under the Plan, except as expressly provided in the applicable Award.
 
(b) No Rights As Shareholder. Subject to the provisions of the applicable Award, no Participant or Designated Beneficiary shall have any rights as a shareholder with respect to any shares of Common Stock to be distributed under the Plan until he or she becomes the holder thereof. A Participant to whom Common Stock is awarded shall be considered the holder of the Stock at the time of the Award except as otherwise provided in the applicable Award.
 
(c) Effective Date. The Plan shall be effective on September 12, 1997.
 
(d) Amendment of Plan. The Board may amend, suspend or terminate the Plan or any portion thereof at any time.
 
(e) Governing Law. The provisions of the Plan shall be governed by and interpreted in accordance with the laws of the State of Delaware.
 
(f) Indemnity. Neither the Board nor the Committee, nor any members of either, nor any employees of the Corporation or any parent, subsidiary, or other affiliate, shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with their responsibilities with respect to this Plan, and the Corporation hereby agrees to indemnify the members of the Board, the members of the Committee, and the employees of the Corporation and its parent or subsidiaries in respect of any claim, loss, damage, or expense (including reasonable counsel fees) arising from any such act, omission, interpretation, construction or determination to the full extent permitted by law.Exhibit 10.1

 

THIS CREDIT AGREEMENT (this “Agreement”) dated as of
September 29, 2005 by and among SL GREEN OPERATING PARTNERSHIP, L.P., a
limited partnership formed under the laws of the State of Delaware (the “Borrower”),
SL GREEN REALTY CORP., a corporation formed under the laws of the State of
Maryland (the “Parent”), WACHOVIA CAPITAL MARKETS, LLC and KEYBANK CAPITAL
MARKETS, as Co-Lead Arrangers and Book Managers (each a “Co-Lead Arranger” and “Book
Manager”), WACHOVIA BANK, NATIONAL ASSOCIATION, as Agent, KEYBANK NATIONAL
ASSOCIATION, as Syndication Agent (the “Syndication Agent”), each of WELLS
FARGO BANK, NATIONAL ASSOCIATION, EUROHYPO AG, NEW YORK BRANCH and COMMERZBANK,
AG, NEW YORK BRANCH as Co-Documentation Agents (each a “Co-Documentation Agent”),
and each of the financial institutions initially a signatory hereto together
with their assignees pursuant to Section 12.5.(b).

 

WHEREAS, the Agent and the Lenders desire to make
available to the Borrower a revolving credit facility in the initial amount of
$500,000,000, which will include a $50,000,000 letter of credit subfacility and
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:

 

“1031 Property”
means property held by a “qualified intermediary” in connection with the
acquisition of such property by the Borrower or a Subsidiary pursuant to, and
qualifying for tax treatment under, Section 1031 of the Internal Revenue
Code.

 

“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 4.1.

 

“Adjusted EBITDA” means, for any given period, (a) the
EBITDA of the Parent and its Subsidiaries determined on a consolidated basis
for such period, minus (b) Capital Reserves.

 

 

“Adjusted LIBOR”
means, with respect to each Interest Period for any LIBOR Loan, the rate
obtained by dividing (a) LIBOR for such Interest Period by (b) 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 to residents of
the United States of America). Any change in such maximum rate shall result in
a change in Adjusted LIBOR on the date on which such change in such maximum
rate becomes effective.

 

“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 five percent (5.0%)
or more of any Equity Interest in the Borrower; or (c) five percent (5.0%)
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.  The Affiliates of a Person shall include any
officer or director of such Person.  In
no event shall the Agent or any Lender be deemed to be an Affiliate of the
Borrower.

 

“Agent” means
Wachovia Bank, National Association, as contractual representative for the
Lenders under the terms of this Agreement, and any of its successors.

 

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

 

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

 

“Applicable Margin”
means:

 

(a)           prior
to the Investment Grade Rating Date, the percentage rate set forth below
corresponding to the ratio of Senior Indebtedness to Total Asset Value as
determined in accordance with Section 9.1. in effect at such time:

 

	
  Level

  	
   

  	
  Senior Indebtedness to

  Total Asset Value

  	
   

  	
  Applicable Margin for

  LIBOR Loans

  	
   

  	
  Applicable Margin for

  Base Rate Loans

  	
   

  
	
  1

  	
   

  	
  < 0.35 to
  1.00

  	
   

  	
  0.85

  	
  %

  	
  0.0

  	
  %

  
	
  2

  	
   

  	
  > 0.35 to
  1.00 and < 0.45 to 1.00

  	
   

  	
  0.95

  	
  %

  	
  0.0

  	
  %

  
	
  3

  	
   

  	
  > 0.45 to
  1.00 and < 0.55 to 1.00

  	
   

  	
  1.10

  	
  %

  	
  0.10

  	
  %

  
	
  4

  	
   

  	
  > 0.55 to
  1.00

  	
   

  	
  1.25

  	
  %

  	
  0.25

  	
  %

  

 

2

 

The
Applicable Margin shall be determined by the Agent from time to time, based on
the ratio of Senior Indebtedness to Total Asset Value as set forth in the
Compliance Certificate most recently delivered by the Borrower pursuant to Section 8.3.  Any adjustment to the Applicable Margin shall
be effective (a) in the case of a Compliance Certificate delivered in
connection with quarterly financial statements of the Parent delivered pursuant
to Section 8.1., as of the date 50 days following the end of the last day
of the applicable fiscal quarter covered by such Compliance Certificate, (b) in
the case of a Compliance Certificate delivered in connection with annual
financial statements of the Parent delivered pursuant to Section 8.2., as
of the date 95 days following the end of the last day of the applicable fiscal
year covered by such Compliance Certificate, and (c) in the case of any
other Compliance Certificate, as of the date 5 Business Days following the
Agent’s request for such Compliance Certificate.  If the Borrower fails to deliver a Compliance
Certificate pursuant to Section 8.3., the Applicable Margin shall equal
the percentages corresponding to Level 4 until the date of the delivery of the
required Compliance Certificate.  As of
the Agreement Date, and thereafter until changed as provided above, the
Applicable Margin is determined based on Level 2; and

 

(b)           on
and at all times after the Investment Grade Rating Date, the percentage per
annum determined, at any time, based on the range into which the Parent’s
Credit Rating then falls, in accordance with the levels in the table set forth
below (each a “Level”).  Any change in
the Parent’s Credit Rating which would cause it to move to a different Level in
such table shall effect a change in the Applicable Margin on the Business Day
on which such change occurs.  During any
period that the Parent has received Credit Ratings that are not equivalent, the
Applicable Margin shall be determined by the higher of such two Credit
Ratings.  During any period for which the
Parent has received a Credit Rating from only one Rating Agency, then the
Applicable Margin shall be determined based on such Credit Rating.  During any period after the Investment Grade
Rating Date for which the Parent has not received a Credit Rating from either
Rating Agency, then the Applicable Margin shall be determined based on
Level 5.

 

	
  Level

  	
   

  	
  Borrower’s Credit Rating

  (S&P/Moody’s)

  	
   

  	
  Applicable Margin for

  LIBOR Loans

  	
   

  	
  Applicable Margin for

  Base Rate Loans

  	
   

  
	
  1

  	
   

  	
  A-/A3

  	
   

  	
  0.50

  	
  %

  	
  0.0

  	
  %

  
	
  2

  	
   

  	
  BBB+/Baa1

  	
   

  	
  0.55

  	
  %

  	
  0.0

  	
  %

  
	
  3

  	
   

  	
  BBB/Baa2

  	
   

  	
  0.60

  	
  %

  	
  0.0

  	
  %

  
	
  4

  	
   

  	
  BBB-/Baa3

  	
   

  	
  0.80

  	
  %

  	
  0.0

  	
  %

  
	
  5

  	
   

  	
  < BBB-/Baa3

  	
   

  	
  1.00

  	
  %

  	
  0.20

  	
  %

  

 

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

 

“Assignee” has
the meaning given that term in Section 12.5.(b).

 

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

 

“Base Rate”
means the per annum rate of interest equal to the greater of (a) the Prime
Rate or (b) the Federal Funds Rate plus one-half of one percent (0.5%).
Any change in the Base

 

3

 

Rate resulting from a change in the Prime
Rate or the Federal Funds Rate shall become effective as of 12:01 a.m. on
the Business Day on which each such change occurs.  The Base Rate is a reference rate used by the
Lender acting as the Agent in determining interest rates on certain loans and
is not intended to be the lowest rate of interest charged by the Lender acting
as the Agent or any other Lender on any extension of credit to any debtor.

 

“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”
has the meaning given that term in Section 2.11.(b).

 

“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).

 

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

 

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

 

“Capital Reserves” means, for any period and with respect to a
Property, an amount equal to (a) $0.30 per square foot times (b) a
fraction, the numerator of which is the number of days in such period and the
denominator of which is 365. Any portion of a Property leased under a ground
lease to a third party that owns the improvements on such portion of such
Property shall not be included in determinations of Capital Reserves. If the
term Capital Reserves is used without reference to any specific Property, then
the amount shall be determined on an aggregate basis with respect to all
Properties of the Parent and its Subsidiaries.

 

“Capitalization Rate”
means seven and one-half percent (7.50%).

 

“Capitalized Lease
Obligation” means an obligation 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 as would be required to

 

4

 

be reflected on a balance sheet of the
applicable Person prepared in accordance with GAAP as of the applicable date.

 

“Cash Equivalents”
means: (a) securities issued, guaranteed or insured by the United States
of America or any of its agencies with maturities of not more than one year
from the date acquired; (b) certificates of deposit with maturities of not
more than one year from the date acquired issued by a United States federal or
state chartered commercial bank of recognized standing, or a commercial bank
organized under the laws of any other country which is a member of the
Organization for Economic Cooperation and Development, or a political
subdivision of any such country, acting through a branch or agency, which bank
has capital and unimpaired surplus in excess of $500,000,000 and which bank or
its holding company has a short-term commercial paper rating of at least A-2 or
the equivalent by S&P or at least P-2 or the equivalent by Moody’s; (c) reverse
repurchase agreements with terms of not more than seven days from the date
acquired, for securities of the type described in clause (a) above
and entered into only with commercial banks having the qualifications described
in clause (b) above; (d) commercial paper issued by any Person
incorporated under the laws of the United States of America or any state
thereof and rated at least A-2 or the equivalent thereof by S&P or at least
P-2 or the equivalent thereof by Moody’s, in each case with maturities of not
more than one year from the date acquired; and (e) investments in money
market funds registered under the Investment Company Act of 1940, as amended,
which have net assets of at least $500,000,000 and at least 85% of whose assets
consist of securities and other obligations of the type described in clauses (a) through
(d) above.

 

“Collateral Account”
means a special interest bearing deposit account or securities account
maintained by, or on behalf of, the Agent and under its sole dominion and
control.

 

“Commitment”
means, as to each Lender (other than the Swingline Lender), such Lender’s
obligation (a) to make Revolving Loans pursuant to Section 2.1., (b) to
issue (in the case of the Lender then acting as Agent) or participate in (in
the case of the other Lenders) Letters of Credit pursuant to Section 2.4.(a) and
2.4.(i), respectively (but in the case of the Lender acting as the Agent,
excluding the aggregate amount of participations in the Letters of Credit held
by the other Lenders), and (c) to participate in Swingline Loans pursuant
to Section 2.3.(e), in each case, 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 increased or reduced as appropriate to reflect any assignments to or by such
Lender effected in accordance with Section 12.5.

 

“Commitment Percentage”
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; provided, however, that if at the time of
determination the Commitments have terminated or been reduced to zero, the “Commitment
Percentage” of each Lender shall be the Commitment Percentage of such Lender in
effect immediately prior to such termination or reduction.

 

“Compliance Certificate”
has the meaning given that term in Section 8.3.

 

5

 

“Construction-in-Process” means cash expenditures for land and
improvements (including indirect costs internally allocated and development
costs) determined in accordance with GAAP on all Properties that are under
development or are scheduled to commence development within twelve months from
any date of determination.

 

“Construction
Budget” means the fully-budgeted costs for the acquisition and
construction of a given parcel of real property (including, without limitation,
the cost of acquiring such parcel of real property, reserves for construction
interest and operating deficits, tenant improvements, leasing commissions, and
infrastructure costs) as reasonably determined by the Parent in good faith.

 

“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 Continuation of a LIBOR Loan, (c) the Conversion of a Base
Rate Loan into a LIBOR Loan, and (d) the issuance of a Letter of Credit.

 

“Credit Rating”
means the rating assigned by a Rating Agency to the senior unsecured long term
Indebtedness of a Person.

 

“Default” means
any of the events specified in Section 10.1., 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 given that term in Section 3.11.

 

“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.

 

6

 

“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 any Lender).

 

“Designated Lender”
means a special purpose corporation which is 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 12.5.(e) 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 12.5.(h).

 

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

 

“Development Property” means a Property (a) currently under
development and on which the improvements (other than tenant improvements on
unoccupied space) related to the development have not been completed or (b) on
which the development of all such improvements (other than tenant improvements
on unoccupied space) has been completed for a period not in excess of
18 months.

 

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

 

“EBITDA”
means, with respect to a Person for any period (without duplication), net
income (loss) of such Person for such period determined on a consolidated
basis, exclusive of the following (but only to the extent included in
determination of such net income (loss)) (a) depreciation and
amortization; (b) Interest Expense; (c) income tax expense; and (d) extraordinary
or non-recurring gains and losses. 
EBITDA shall be adjusted to remove any impact from straight line rent
leveling adjustments required under GAAP and amortization of intangibles
pursuant to Statement of Financial Accounting Standards number 141.

 

“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 5.1. shall have been
fulfilled or waived in writing by the Requisite Lenders.

 

7

 

“Eligible Assignee”
means (a) a Lender, (b) an affiliate of a Lender, (c) an
Approved Fund, and (d) any other Person (other than a natural person)
approved by (i) the Agent and (ii) unless a Default or Event of
Default exists, the Borrower (each such approval not to be unreasonably
withheld or delayed); provided that notwithstanding the foregoing, “Eligible
Assignee” shall not include the Borrower or any of the Borrower’s Affiliates or
Subsidiaries.

 

“Eligible Property” means a Property which satisfies all of the
following requirements: (a) such Property is fully developed as an office
property; (b) the Property is owned, or leased under a Ground Lease,
entirely by the Borrower and/or a Subsidiary of the Borrower; (c) neither
such Property, nor any interest of the Borrower or any Subsidiary therein, is
subject to any Lien (other than Permitted Liens of the types described in
clauses (a) through (e) of the definition of Permitted Liens) or
a Negative Pledge; (d) if such Property is owned or leased by a Subsidiary
(i) none of the Borrower’s direct or indirect ownership interest in such
Subsidiary is subject to any Lien (other than Permitted Liens of the types
described in clauses (a) through (e) of the definition of
Permitted Liens) or to a Negative Pledge; and (ii) the Borrower directly,
or indirectly through a Subsidiary, has the right to take the following actions
without the need to obtain the consent of any Person: (x) to sell,
transfer or otherwise dispose of such Property and (y) to create a Lien on
such Property as security for Indebtedness of the Borrower or such Subsidiary,
as applicable; and (e) such Property is free of all structural defects or
major architectural deficiencies, title defects, environmental conditions or
other adverse matters except for defects, deficiencies, conditions or other
matters individually or collectively which are not material to the profitable
operation of such Property.

 

“Environmental Laws”
means any Applicable Law relating to environmental protection or the
manufacture, storage, remediation, 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, as amended by the Resource Conservation and Recovery
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 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 by a Person of any Equity Interest in such Person and shall
in any event include the issuance of any Equity Interest upon the conversion or

 

8

 

exchange of any security constituting
Indebtedness that is convertible or exchangeable, or is being converted or
exchanged, for Equity Interests.

 

“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 10.1., provided that any
requirement for notice or lapse of time or any other condition has been
satisfied.

 

“Excluded Subsidiary”
means any Subsidiary (a) holding title to assets which are or are to
become collateral for any Secured Indebtedness of such Subsidiary and (b) which
is prohibited from Guarantying the Indebtedness of any other Person pursuant to
(i) any document, instrument or agreement evidencing such Secured
Indebtedness or (ii) a provision of such Subsidiary’s organizational
documents which provision was included in such Subsidiary’s organizational
documents as a condition to the extension of such Secured Indebtedness.  In
addition, the Trust shall be deemed an Excluded Subsidiary.

 

“Existing Secured Credit
Agreement” means that certain Amended
and Restated Revolving Secured Credit and Guaranty Agreement dated as of
March 22, 2004, by and among the Borrower, the financial institutions party
thereto as “Lenders”, Bank of America, N.A., successor to Fleet National Bank,
as Agent, and the other parties thereto.

 

“Existing Unsecured Credit
Agreement” means that certain Amended
and Restated Revolving Credit and Guaranty Agreement dated as of March 17,
2003, by and among the Borrower, the financial institutions party thereto as “Lenders”,
Bank of America, N.A., successor to Fleet National Bank, as Agent, and the
other parties thereto.

 

“Facility Fee”
means the per annum percentage set forth in the table below corresponding to
the Level at which the “Applicable Margin” is determined in accordance with the
definition thereof on and at all times following the Investment Grade Rating
Date:

 

	
  Level

  	
   

  	
  Facility Fee

  	
   

  
	
  1

  	
   

  	
  0.15

  	
  %

  
	
  2

  	
   

  	
  0.15

  	
  %

  
	
  3

  	
   

  	
  0.20

  	
  %

  
	
  4

  	
   

  	
  0.20

  	
  %

  
	
  5

  	
   

  	
  0.30

  	
  %

  

 

“Fair Market Value”
means, with respect to (a) a security listed on a national securities
exchange or the NASDAQ National Market, the price of such security as reported
on such

 

9

 

exchange or market by any widely recognized
reporting method customarily relied upon by financial institutions and (b) with
respect to any other property, the price which 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.

 

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

 

“Fixed Charges” means, for any period, the sum of (a) Interest
Expense of the Parent and its Subsidiaries determined on a consolidated basis
for such period, (b) all regularly scheduled principal payments made with
respect to Indebtedness of the Parent and its Subsidiaries during such period,
other than any balloon, bullet or similar principal payment which repays such
Indebtedness in full, and (c) all Preferred Dividends paid during such
period.

 

“Foreign Lender” means any Lender that is organized under the
laws of a jurisdiction other than the United States of America, any state
thereof or the District of Columbia.

 

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

 

“Funds From Operations”
means, with respect to a Person and for a given period, (a) net income
(loss) of such Person determined on a consolidated basis for such period minus
(or plus) (b) gains (or losses) from debt restructuring and sales
of property during such period plus (c) depreciation with respect
to such Person’s real estate assets and amortization (other than amortization
of deferred financing costs) of such Person for such period, all after
adjustment to eliminate amounts attributable to Unconsolidated Affiliates but
which have not actually been received by such Person.

 

“GAAP” means
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.

 

10

 

“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,
commission, board, department or other 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.

 

“Gramercy Value” means an amount equal to
the lesser of (a) 75% of the GAAP book value of the Gramercy Capital Corp.
common stock owned by the Borrower and which is not subject to any Liens or
Negative Pledge and (b) $100,000,000. 
Gramercy Value shall be equal to zero if Gramercy Capital Corporation
ceases to be listed on the New York Stock Exchange. 

 

“Ground Lease” means a ground lease containing the following
terms and conditions: (a) a remaining term (exclusive of any unexercised
extension options) of 40 years or more from the Agreement Date; (b) the
right of the lessee to mortgage and encumber its interest in the leased
property without the consent of the lessor; (c) the obligation of the
lessor to give the holder of any mortgage Lien on such leased property written
notice of any defaults on the part of the lessee and agreement of such lessor
that such lease will not be terminated until such holder has had a reasonable
opportunity to cure or complete foreclosures, and fails to do so; (d) reasonable
transferability of the lessee’s interest under such lease, including ability to
sublease; and (e) such other rights customarily required by mortgagees
making a loan secured by the interest of the holder of the leasehold estate
demised pursuant to a ground lease.

 

“Guarantor”
means any Person that is a party to the Guaranty as a “Guarantor,” and, in any
event, shall include the Parent.

 

“Guaranty”, “Guaranteed”, “Guarantying”
or to “Guarantee” as applied to any obligation
means and includes:  (a) a guaranty
(other than by endorsement of negotiable instruments for collection or deposit
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 (including 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 to which the Guarantors are parties substantially
in the form of Exhibit O.

 

11

 

“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; (e) toxic mold; and (f) electrical equipment which
contains any oil or dielectric fluid containing levels of polychlorinated
biphenyls in excess of fifty parts per million.

 

“Identified Property” means a Property which is subject to a
Lien securing Nonrecourse Secured Indebtedness but which would otherwise
qualify as an Eligible Property and which Property the Borrower has requested,
and the Agent has agreed, to include as an Identified Property.

 

“Identified Property Indebtedness”
means, the aggregate amount of Nonrecourse Secured Indebtedness which is
secured by Liens on Identified Properties.

 

“Identified Property Value” means, the sum of (a) with respect to the Identified Properties
owned by the Parent, the Borrower or any Subsidiary for the period of four
consecutive fiscal quarters most recently ended, the quotient of (i) Net
Operating Income attributable to such Identified Property for the period of
four consecutive fiscal quarters most recently ended, divided by (ii) the
Capitalization Rate, plus (b) the GAAP book value of Identified Properties
acquired during such period of four consecutive fiscal quarters.  An Identified Property shall be excluded from
the determination of Identified Property Value if at the time of such
determination the obligor in respect of the Identified Property Indebtedness
secured by a Lien on such Identified Property is in default of such
Indebtedness.

 

“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 (other than trade debt
incurred in the ordinary course of business which is not more than 60 days past
due); (b) all obligations of such Person, 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 or services rendered; (c) Capitalized Lease Obligations of such
Person; (d) all reimbursement obligations (contingent or otherwise) of
such Person in respect of letters of credit or acceptances (whether or not the
same have been presented for payment); (e) all Off-Balance Sheet
Obligations of such Person; (f) all obligations of such Person to
purchase, redeem, retire, defease or otherwise make any payment in respect of
any Mandatorily Redeemable Stock issued by such Person or any other Person,
valued at the greater of its voluntary or involuntary liquidation preference
plus accrued and unpaid dividends; (g) all obligations of such Person in
respect of any purchase obligation, repurchase obligation, takeout

 

12

 

commitment or forward equity commitment, in
each case evidenced by a binding agreement (excluding any such obligation to
the extent the obligation can be satisfied by the issuance of Equity Interests
(other than Mandatorily Redeemable Stock)); (h) net obligations under any
Derivatives Contract not entered into as a hedge against existing Indebtedness,
in an amount equal to the Derivatives Termination Value thereof; (i) all
Indebtedness of other Persons which such Person has Guaranteed or is otherwise
recourse to such Person (except for guaranties of customary exceptions for
fraud, misapplication of funds, environmental indemnities and other similar
exceptions to recourse liability (but not exceptions relating to bankruptcy,
insolvency, receivership or other similar events)); and (j) all
Indebtedness of another Person secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by)
any Lien on property or assets owned by such Person, even though such Person has
not assumed or become liable for the payment of such Indebtedness or other
payment obligation.  All Loans and Letter
of Credit Liabilities shall constitute Indebtedness of the Borrower.

 

“Intellectual Property”
has the meaning given that term in Section 6.1.(t).

 

“Interest Expense” means, for any period, without duplication,
total interest expense of the Parent and its Subsidiaries, including
capitalized interest not funded under a construction loan interest reserve
account, determined on a consolidated basis for such period.

 

“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 7 days (with the approval of the Agent), 1, 2, 3 or 6 months 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 a day for which
there is no corresponding day in the appropriate subsequent calendar month,
shall end on the last Business Day of the appropriate subsequent calendar
month; and

 

(b)           with
respect to any Bid Rate Loan, the period commencing on the date such Bid Rate
Loan is made and ending on any Business Day not less than 7 nor more than 90
days thereafter, as the Borrower may select as provided in Section 2.2.(b).

 

Notwithstanding
the foregoing: (i) if any Interest Period would otherwise end after the
Termination Date, such Interest Period shall end on the Termination Date; and (ii) each
Interest Period that would otherwise end on a day which is not a Business Day
shall end on the immediately following Business Day (or in the case of an
Interest Period for a LIBOR Loan other than one having a duration of 7 days, if
such immediately following Business Day falls in the next calendar month, on
the immediately preceding Business Day).

 

“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, by means of any of the
following:  (a) the

 

13

 

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 binding commitment
to make an Investment in any other Person, as well as any option of another
Person to require an Investment in such 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-/Baa3 (or equivalent) or higher from both S&P
and Moody’s, respectively.

 

“Investment Grade Rating
Date” means the date on which the Parent first obtains an Investment
Grade Rating from both of the Rating Agencies.

 

“Junior Subordinated
Indenture” means that certain Junior Subordinated Indenture dated as
of June 30, 2005 by and between the Borrower and JPMorgan Chase Bank,
National Association, as Trustee.

 

“L/C Commitment Amount”
equals $50,000,000.

 

“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
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 shall further exclude each Designated
Lender for all other purposes under the Loan Documents except that any
Designated Lender which funds a Bid Rate Loan shall, subject to Section 12.5.(h),
have the rights (including the rights given to a Lender contained in
Sections 12.2. and 12.9.) 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 Acceptance Agreement, or such other office of such Lender of
which such Lender may notify the Agent in writing from time to time.

 

“Letter of Credit”
has the meaning given that term in Section 2.4.(a).

 

“Letter of Credit Documents”
means, with respect to any Letter of Credit, collectively, any application
therefor, any certificate or other document presented in connection with a
drawing under such Letter of Credit and any other agreement, instrument or
other document governing or providing for (a) the rights and obligations
of the parties concerned or at risk with respect to such Letter of Credit or (b) any
collateral security for any of such obligations.

 

14

 

“Letter of Credit
Liabilities” means, without duplication, at any time and in respect
of any Letter of Credit, the sum of (a) the Stated Amount of such Letter
of Credit plus (b) the aggregate unpaid principal amount of all
Reimbursement Obligations of the Borrower at such time due and payable in
respect of all drawings made under such Letter of Credit.  For purposes of this Agreement, a Lender
(other than the Lender acting as the Agent) shall be deemed to hold a Letter of
Credit Liability in an amount equal to its participation interest in the
related Letter of Credit under Section 2.4.(i), and the Lender acting as
the Agent shall be deemed to hold a Letter of Credit Liability in an amount
equal to its retained interest in the related Letter of Credit after giving
effect to the acquisition by the Lenders other than the Lender acting as the
Agent of their participation interests under such Section.

 

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

 

“LIBOR” means, for any LIBOR Loan or LIBOR Margin Loan for
any Interest Period therefor, the rate per annum (rounded upwards, if
necessary, to the nearest 1/100 of 1%) appearing on Telerate Page 3750 (or
any successor page) as the London interbank offered rate for deposits in
Dollars at approximately 11:00 a.m. (London time) two Business Days prior
to the first day of such Interest Period for a term comparable to such Interest
Period.  If for any reason such rate is
not available, the term “LIBOR” shall mean, for any LIBOR Loan or LIBOR Margin
Loan for any Interest Period therefor, the rate per annum (rounded upwards, if
necessary, to the nearest 1/100 of 1%) appearing on the Reuters Screen LIBO Page as
the London interbank offered rate for deposits in Dollars at approximately
11:00 a.m. (London time) two Business Days prior to the first day of such
Interest Period for a term comparable to such Interest Period; provided, however,
if more than one rate is specified on the Reuters Screen LIBO Page, the
applicable rate shall be the arithmetic mean of all such rates. If for any
reason none of the foregoing rates is available, LIBOR shall be, for any
Interest Period, the rate per annum reasonably determined by the Agent as the
rate of interest at which Dollar deposits in the approximate amount of the
LIBOR Loan comprising part of such borrowing or LIBOR Margin Loan would be
offered by the Agent to major banks in the London interbank Eurodollar market
at their request at or about 11:00 a.m. (London time) two Business Days
prior to the first day of such Interest Period for a term comparable to such
Interest Period.

 

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

 

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

 

“LIBOR Margin”
has the meaning given that term in Section 2.2.(c)(ii)(D).

 

“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, assignment of leases and rents,

 

15

 

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 the income, rents 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 Uniform Commercial Code or its
equivalent in any jurisdiction, other than any precautionary filing not
otherwise constituting or giving rise to a Lien, including a financing
statement filed (i) in respect of a lease not constituting a Capitalized
Lease Obligation pursuant to Section 9-505 (or a successor provision) of
the Uniform Commercial Code or its equivalent as in effect in an applicable
jurisdiction or (ii) in connection with a sale or other disposition of
accounts or other assets not prohibited by this Agreement in a transaction not
otherwise constituting or giving rise to a Lien; (d) in the case of a
security, a third party’s right to purchase such security, and (e) 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, each Letter of Credit Document, the New York
Mortgages, the Guaranty 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 Parent, the Borrower and each other Person who guarantees all
or a portion of the Obligations and/or who pledges any collateral security to
secure all or a portion of the Obligations. 
Schedule 1.1.(A) sets forth the Loan Parties in addition to,
the Parent and the Borrower as of the Agreement Date.

 

“Mandatorily
Redeemable Stock” means, with respect to any Person, any Equity
Interest of such Person which by the terms of such Equity Interest (or by the
terms of any security into which it is convertible or for which it is
exchangeable or exercisable), upon the happening of any event or otherwise, (a) matures
or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise (other than an Equity Interest to the extent redeemable in exchange
for common stock or other equivalent common Equity Interests at the option of
the issuer of such Equity Interest), (b) is convertible into or
exchangeable or exercisable for Indebtedness or Mandatorily Redeemable Stock,
or (c) is redeemable at the option of the holder thereof, in whole or in
part (other than an Equity Interest which is redeemable solely in exchange for
common stock or other equivalent common Equity Interests), in each case on or
prior to the date on which all Revolving Loans are scheduled to be due and
payable in full.

 

“Material Adverse Effect”
means a materially adverse effect on (a) the business, assets,
liabilities, condition (financial or otherwise), results of operations or
business prospects of the Parent and its Subsidiaries or the Borrower and its
Subsidiaries, in each case, taken as a whole, (b) the ability of the
Borrower or any other Loan Party to perform any of its material 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

 

16

 

Loan Documents or (e) the timely payment
of the principal of or interest on the Loans or other amounts payable in
connection therewith or the timely payment of all Reimbursement Obligations.

 

“Material Contract”
means any contract or other arrangement (other than Loan Documents), whether
written or oral, to which the Parent, 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 Subsidiary”
means any Subsidiary that directly owns or leases an Eligible Property or
directly owns a Structured Finance Investment.

 

“Moody’s” means
Moody’s Investors Service, Inc., and its successors.

 

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

 

“Mortgage Receivable”
means a promissory note secured by a Mortgage of which the Parent, the
Borrower, a Guarantor or one of their respective Subsidiaries is the holder and
retains the rights of collection of all payments thereunder.

 

“Multiemployer Plan”
means at any time a multiemployer 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 or assumption of any Lien on such asset as security for
Indebtedness of the Person owning such asset or any other Person; provided,
however, that an agreement that conditions a Person’s ability to encumber its
assets upon the maintenance of one or more specified ratios that limit such
Person’s ability to encumber its assets but that do not generally prohibit the
encumbrance of its assets, or the encumbrance of specific assets, shall not
constitute a Negative Pledge.

 

“Net Operating Income” or “NOI” means, for any Property and for a given
period, the sum of the following (without duplication and determined on a
consistent basis with prior periods): (a) rents and other revenues
received in the ordinary course from such Property (including proceeds of rent
loss or business interruption insurance but 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 (excluding
interest but including an appropriate accrual for property taxes and insurance)
related to the ownership, operation or maintenance of such Property, including
but not limited to property taxes, assessments and the like, insurance,
utilities, payroll costs, maintenance, repair and landscaping expenses,
marketing expenses, and

 

17

 

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 Parent or any
Subsidiary and any property management fees) minus (c) the Capital
Reserves for such Property as of the end of such period minus (d) the
greater of (i) the actual property management fee paid during such period
and (ii) an imputed management fee in the amount of one and one-half
percent (1.50%) of the gross revenues for such Property for such period.

 

“Net Proceeds”
means with respect to any Equity Issuance by a Person, an amount equal to (a) the
aggregate amount of all cash and the Fair Market Value of all other property
(other than securities of such Person being converted or exchanged in
connection with such Equity Issuance) 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 and minus (b) the aggregate amount the proceeds of such Equity
Issuance used at the time of such Equity Issuance to redeem, repurchase or
otherwise acquire or retire any other Equity Interest (other than Mandatorily
Redeemable Stock) of such Person.

 

“New York Mortgages”
means each of the Mortgages described on Schedule 1.1.(B) and any
additional Mortgages encumbering real property located in the State of New
York, in each case which have been assigned from time to time pursuant to Section 12.19.

 

“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 exceptions to nonrecourse liability) is
contractually limited to specific assets of such Person encumbered by a Lien
securing such Indebtedness.

 

“Nonrecourse Secured
Indebtedness” means, with respect to a Person, Indebtedness which is
both Nonrecourse Indebtedness and Secured Indebtedness.

 

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

 

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

 

“Notice of Continuation”
means a notice in the form of Exhibit D 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 in the form of Exhibit E 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.

 

18

 

“Notice of Swingline
Borrowing” means a notice in the form of Exhibit F to be
delivered to the Agent pursuant to Section 2.3. 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; (b) all
Reimbursement Obligations and all other Letter of Credit Liabilities; and (c) all
other indebtedness, liabilities, obligations, covenants and duties of the
Borrower and 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
actually occupied by non-Affiliated tenants paying rent at rates not materially
less than rates generally prevailing at the time the applicable lease was
entered into, pursuant to binding leases as to which no monetary default has
occurred and has continued unremedied for 60 or more days to (b) the
aggregate net rentable square footage of such Property.  For purposes of the definition of “Occupancy
Rate”, a tenant shall be deemed to actually occupy a Property notwithstanding a
temporary cessation of operations for renovation, repairs or other temporary
reason, or for the purpose of completing tenant build-out or that is otherwise
scheduled to be open for business within 90 days of such date.

 

“OFAC” means
U.S. Department of the Treasury’s Office of Foreign Assets Control and any
successor Governmental Authority.

 

“Off-Balance Sheet Obligations” means liabilities and obligations of the
Parent, any Subsidiary or any other Person in respect of “off-balance sheet
arrangements” (as defined in the SEC Off-Balance Sheet Rules) which the Parent
would be required to disclose in the “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” section of the Parent’s
report on Form 10-Q or Form 10-K (or their equivalents) which the
Parent is required to file with the Securities and Exchange Commission (or any
Governmental Authority substituted therefor). 
As used in this definition, the term “SEC Off-Balance Sheet Rules” means
the Disclosure in Management’s Discussion and Analysis About Off-Balance Sheet
Arrangements, Securities Act Release No. 33-8182, 68 Fed. Reg. 5982 (Feb. 5,
2003) (codified at 17 CFR pts. 228, 229 and 249).  For purposes of this definition, Indebtedness
of an Unconsolidated Affiliate shall not constitute an Off-Balance Sheet Obligation.

 

“Parent” has the meaning given such term in the introductory
paragraphs hereof and shall include the Parent’s successors and permitted
assigns.

 

“Participant”
has the meaning given that term in Section 12.5.(d).

 

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

 

19

 

“Permitted Liens”
means, as to any 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 7.6.; (b) Liens consisting of deposits or
pledges made, in the ordinary course of business, in connection with, or to
secure payment of, obligations under workers’ 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 intended 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) Liens in favor
of the Borrower or a Guarantor securing obligations owing by a Subsidiary to
the Borrower or such Guarantor; and (g) Liens in existence as of the
Agreement Date and set forth in Part II of Schedule 6.1.(g).

 

“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 (a) is
maintained, or contributed to, by any member of the ERISA Group for employees
of any member of the ERISA Group or (b) 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 a rate per annum equal to the Base Rate as in effect from time to time plus
the Applicable Margin for Base Rate Loans plus four percent (4.0%).

 

“Preferred Dividends” means, for any period and without duplication,
all Restricted Payments paid during such period on Preferred Equity Interests
issued by the Parent or a Subsidiary. 
Preferred Dividends shall not include dividends or distributions (a) paid
or payable solely in Equity Interests (other than Mandatorily Redeemable Stock)
payable to holders of such class of Equity Interests, (b) paid or payable
to the Parent or a Subsidiary, or (c) constituting or resulting in the
redemption of Preferred Equity Interests, other than scheduled redemptions not
constituting balloon, bullet or similar redemptions in full.

 

“Preferred Equity Interests”
means, with respect to any Person, Equity Interests in such Person which are
entitled to preference or priority over any other Equity Interests in such
Person in respect of the payment of dividends or distribution of assets upon
liquidation or both.

 

“Prime Rate”
means the rate of interest per annum announced publicly by the Lender then
acting as the Agent as its prime rate from time to time.  The Prime Rate is not necessarily

 

20

 

the best or the lowest rate of interest
offered by the Lender acting as the Agent or any other Lender.

 

“Principal Office”
means the office of the Agent located at One Wachovia Center, Charlotte, North
Carolina, or such other office of the Agent as the Agent may designate from
time to time.

 

“Property” means
any parcel of real property owned or leased (in whole or in part) by the
Parent, the Borrower or any other Subsidiary and which is located in a state of
the United States of America or the District of Columbia.

 

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

 

“Register” has
the meaning given that term in Section 12.5.(c).

 

“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.

 

“Reimbursement Obligation”
means the absolute, unconditional and irrevocable obligation of the Borrower to
reimburse the Agent for any drawing honored by the Agent under a Letter of Credit.

 

“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 (not held by Defaulting Lenders who are not entitled to
vote), or, if the Commitments have been terminated or reduced to zero, Lenders
holding at least 66-2/3% of the principal amount of the aggregate outstanding
Loans and Letter of Credit Liabilities (not held by Defaulting Lenders who are
not entitled to vote).  Commitments,
Revolving Loans and Letter of Credit Liabilities held by Defaulting Lenders
shall be disregarded when determining the Requisite Lenders.  For purposes of this definition, a Lender
(other than the Swingline Lender) shall be deemed to hold a Swingline Loan or a
Letter of Credit Liability to the extent such Lender has acquired a
participation therein under the terms of this Agreement and has not failed to
perform its obligations in respect of such participation.

 

“Responsible Officer”
means with respect to the Parent and the Borrower, the chairman, the chief
executive officer, the chief operating officer, the chief financial officer,
the treasurer, the general counsel, any executive vice president and any senior
vice president, and with respect to any Subsidiary (other than the Borrower),
the chief executive officer, the chief operating

 

21

 

officer and the chief financial officer.

 

“Restricted Payment”
means: (a) any dividend or other distribution, direct or indirect, on
account of any Equity Interest of the Parent, the Borrower or any Subsidiary
now or hereafter outstanding, except a dividend payable solely in Equity
Interests of an identical or junior
class 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 Equity Interest of the
Parent, the Borrower or any Subsidiary 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 any Equity Interests of the
Parent, the Borrower or any Subsidiary now or hereafter outstanding.

 

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

 

“Revolving Note”
has the meaning given that term in Section 2.11.(a).

 

“Sanctioned Entity”
means (a) an agency of the government of, (b) an organization
directly or indirectly controlled by, or (c) a Person resident in, in each
case, a country that is subject to a sanctions program identified on the list
maintained by the OFAC and published from time to time, as such program may be
applicable to such agency, organization or Person.

 

“Sanctioned Person”
means a Person named on the list of Specially Designated Nationals or Blocked
Persons maintained by the OFAC as published from time to time.

 

“Secured Indebtedness”
means, with respect to a Person as of any given date, the aggregate principal
amount of all Indebtedness of such Person outstanding at such date and that is
secured in any manner by any Lien.

 

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

 

“Senior Debt”
means the principal of and any premium and interest on (including interest
accruing on or after the filing of any petition in bankruptcy or for
reorganization relating to the Borrower, whether or not such claim for
post-petition interest is allowed in such proceeding) all Debt of the Borrower,
whether incurred on or prior to the date of the Junior Subordinated Indenture
or thereafter incurred, unless it is provided in the instrument creating or
evidencing the same or pursuant to which the same is outstanding, that such
obligations are not superior in right of payment to the debt securities
authenticated and delivered under the Junior Subordinated Indenture; provided,
that Senior Debt shall not be deemed to include any other debt securities (and
guarantees, if any, in respect of such debt securities) issued to any trust
other than the Trust (or a trustee of any such trust), partnership or other
entity affiliated with the Borrower that is a financing vehicle of the Borrower
(a “financing entity”) in connection with the issuance by such financing entity
of equity securities or other securities pursuant to an instrument that ranks
pari passu with or junior in right of payment to the Junior Subordinated
Indenture.  For purposes of this
definition, “Debt” means, with respect to any Person, whether recourse is to
all

 

22

 

or a portion of the assets of such Person,
whether currently existing or hereafter incurred and whether or not contingent
and without duplication, (i) every obligation of such Person for money
borrowed; (ii) every obligation of such Person evidenced by bonds,
debentures, notes or other similar instruments, including obligations incurred
in connection with the acquisition of property, assets or businesses; (iii) every
reimbursement obligation of such Person with respect to letters of credit,
bankers’ acceptances or similar facilities issued for the account of such
Person; (iv) every obligation of such Person issued or assumed as the
deferred purchase price of property or services (but excluding trade accounts
payable or other accrued liabilities arising in the ordinary course of
business); (v) every capital lease obligation of such Person; (vi) all
indebtedness of such Person, whether incurred on or prior to the date of the
Junior Subordinated Indenture or thereafter incurred, for claims in respect of
derivative products, including interest rate, foreign exchange rate and
commodity forward contracts, options and swaps and similar arrangements; (vii) every
obligation of the type referred to in clauses (i) through (vi) of
another Person and all dividends of another Person the payment of which, in
either case, such Person has guaranteed or is responsible or liable for,
directly or indirectly, as obligor or otherwise; and (viii) any renewals,
extensions, refundings, amendments or modifications of any obligation of the
type referred to in clauses (i) through (vii).  For the avoidance of doubt, Indebtedness of
the Borrower in respect of debt securities authenticated and delivered under
the Junior Subordinated Indenture shall not constitute Senior Debt.

 

“Senior Indebtedness”
means (a) all Indebtedness of the Parent and (b) all Indebtedness of
the Borrower that constitutes Senior Debt.

 

“Senior Unsecured
Indebtedness” means all Senior Indebtedness which is also Unsecured
Indebtedness.

 

“Single Asset
Entity” means a Person (other than an individual) that (a) only
owns a single Property; (b) is engaged only in the business of owning,
developing and/or leasing such Property; and (c) receives substantially
all of its gross revenues from such Property. 
In addition, if the assets of a Person consist solely of (i) Equity
Interests in one other Single Asset Entity and (ii) cash and other assets of
nominal value incidental to such Person’s ownership of the other Single Asset
Entity, such Person shall also be deemed to be a Single Asset Entity for
purposes of this Agreement.

 

“Significant
Subsidiary” means any Subsidiary to which more than $50,000,000 of
Total Asset Value is attributable.

 

“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 each in excess of the fair valuation of its total
liabilities (including all contingent liabilities computed at the amount which,
in light of all the facts and circumstances existing at such time, represents
the amount that could reasonably be expected to become an actual and matured
liability); (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.

 

23

 

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

 

“Stated Amount”
means the amount available to be drawn by a beneficiary under a Letter of Credit
from time to time, as such amount may be increased or reduced from time to time
in accordance with the terms of such Letter of Credit.

 

“Structured Finance
Investments” means, collectively, Investments directly or indirectly
in (or in entities (other than Gramercy Capital Corp.) whose Investments are
primarily in) (i) Indebtedness secured by Mortgages and Indebtedness in
the form of mezzanine loans, and (ii) preferred equity Investments
(including preferred limited partnership interests) in entities owning (or
leasing pursuant to a Ground Lease) class B (or better) office properties
located in the greater New York, New York area. 
Structured Finance Investments shall also include existing Investments
of the types described in the preceding sentence in entities with office
properties in locations other than the greater New York, New York area, which
existing Investments are held by the Borrower as of the Agreement Date.

 

“Structured Finance Value”
means an amount equal to the sum of 75% of the value (as determined in
accordance with GAAP) of each Structured Finance Investment (a) that is
not subject to any Lien or Negative Pledge and (b) in respect of which no
obligor is more than 60 days past due in respect of its payment obligations
thereunder.

 

“Subsidiary”
means, for any Person, any corporation, partnership or other entity of which at
least a majority of the Equity Interests having by the terms thereof ordinary
voting power to elect a majority of the board of directors or other individuals
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, by one or more Subsidiaries
of such Person or by such Person and one or more Subsidiaries of such Person, and shall include all Persons the accounts
of which are consolidated with those of such Person pursuant to GAAP.

 

“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, $50,000,000, as such amount may be
reduced from time to time in accordance with the terms hereof.

 

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

 

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

 

“Swingline Note”
means the promissory note of the Borrower 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, substantially in the form of
Exhibit G.

 

24

 

“Tangible Net Worth” means, as of a given date, (a) the
stockholders’ equity of the Parent and Subsidiaries determined on a
consolidated basis, plus (b) accumulated depreciation and amortization,
minus (c) the following (to the extent reflected in determining
stockholders’ equity of the Parent and its Subsidiaries): (i) the amount
of any write-up in the book value of any assets contained in any balance sheet
resulting from revaluation thereof or any write-up in excess of the cost of
such assets acquired, and (ii) all amounts appearing on the assets side of
any such balance sheet for assets which would be classified as intangible
assets under GAAP, all determined on a consolidated basis.

 

“Taxes” has the
meaning given that term in Section 3.12.

 

“Termination Date”
means September 28, 2008, or such later date to which the Termination Date
may be extended pursuant to Section 2.13.

 

“Titled Agents”
means each of the Co-Lead Arranger and Book Manager, the Syndication Agent, and
the Co-Documentation Agents and their respective successors and permitted
assigns.

 

“Total Asset Value” means the sum of
all of the following of the Parent and its Subsidiaries determined on a
consolidated basis in accordance with GAAP applied on a consistent basis: (a) cash
and cash equivalents, plus (b) with respect to each Property (excluding
Development Properties) owned by the Borrower or any Subsidiary for the period
of four consecutive fiscal quarters most recently ended, the quotient of (i) Net
Operating Income attributable to such Property for such period of four
consecutive fiscal quarters, divided by (ii) the Capitalization Rate, plus
(c) the GAAP book value of Properties (excluding Development Properties)
acquired during the most recent period of four consecutive fiscal quarters,
plus (d) the GAAP book
value of Development Properties, plus (e) the
GAAP book value of Unimproved Land, Mortgage Receivables and other promissory
notes, plus (f) the Structured Finance Value, plus (g) the Gramercy
Value, plus (h) the GAAP book value of the Parent’s Investment in
Unconsolidated Affiliates, plus (i) the GAAP book value of all
1031 Properties.  Notwithstanding
the foregoing, at all times on or before December 31, 2006, the amount of
Total Asset Value attributable to each Property located at 750 Third Avenue and
28 West 44th Street, New York, New York, shall be equal to the
GAAP book value of such Property and accordingly any Net Operating Income from
either such Property shall not be included in the immediately preceding
clause (b).

 

“Total Indebtedness” means all Indebtedness of the Parent, the
Borrower and all their respective Subsidiaries determined on a consolidated
basis.

 

“Trust” means SL
Green Capital Trust I, a Delaware statutory trust.

 

“Type” with
respect to any Revolving Loan, refers to whether such Loan is a LIBOR Loan or
Base Rate Loan.

 

“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

 

25

 

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.

 

“Unconsolidated Asset Value” means (a) the
aggregate Net Operating Income attributable to the real property assets owned
by each Unconsolidated Affiliate for the period of four consecutive fiscal
quarters most recently ended divided by the Capitalization Rate, plus (b) the
GAAP book value of the real property assets owned by each Unconsolidated
Affiliate which were acquired during such four quarter period.

 

“Unencumbered Adjusted NOI” means, for any
period, (a) NOI from all
Eligible Properties, plus (b) NOI from all Identified Properties, plus (c) fifty
percent (50%) of the revenues actually received by the Borrower in respect of
Structured Finance Investments.

 

“Unencumbered Asset Value” means (a) the Unencumbered Adjusted NOI
(excluding NOI attributable to Development Properties and Identified Properties
and revenues attributable to Structured Finance Investments) from each Eligible
Property owned by the Borrower or any Subsidiary for the period of four
consecutive fiscal quarters most recently ended divided by the Capitalization
Rate, plus (b) the GAAP book value of all Eligible Properties acquired
during such period of four consecutive fiscal quarters most recently ended,
plus (c) the GAAP book value of Development Properties not subject to any
Lien (other than Permitted Liens of the types described in clauses (a) through
(e) of the definition of Permitted Liens) or any Negative Pledge, plus (d) the
Identified Property Value, plus (e) the Structured Finance Value, plus (f) the
Gramercy Value.  Notwithstanding the
foregoing, at all times on or before December 31, 2006, the amount of Unencumbered
Asset Value attributable to the Properties located at 750 Third Avenue and
28 West 44th Street, New York, New York so long as such
Properties are Eligible Properties, shall be equal to the GAAP book value of
such Properties and accordingly any Net Operating Income from either such
Property shall not be included in the immediately preceding
clause (a).  For purposes of this
definition, to the extent the Unencumbered
Asset Value attributable to the following categories of assets would
exceed the applicable limits set forth below, such excess shall be excluded:

 

	
  Asset
  Type

  	
   

  	
  Limitation

  
	
  Development Properties

  	
   

  	
  10.0% of the Unencumbered Asset Value

  
	
   

  	
   

  	
   

  
	
  Identified Property Value

  	
   

  	
  25.0% of the Unencumbered Asset Value

  
	
   

  	
   

  	
   

  
	
  Structured Finance Value plus Gramercy Value

  	
   

  	
  The lesser of (i) $200,000,000 and (ii) 20% of the
  Unencumbered Asset Value determined exclusive of Structured Finance Value and
  Gramercy Value

  

 

“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,

 

26

 

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.

 

“Unimproved Land” means land on which no development (other than
improvements that are not material and are temporary in nature) has occurred and
for which no development is scheduled in the following 12 months.

 

“Unsecured Indebtedness” means Indebtedness which is not Secured
Indebtedness, plus Identified Property Indebtedness.  To the extent that Identified Property Value
is excluded from Unencumbered Asset Value, the related Indebtedness to such
Identified Property Value shall be excluded from Unsecured Indebtedness.

 

“Unsecured Interest Expense” means, for a given period, all
Interest Expense of the Parent and Subsidiaries attributable to Senior
Unsecured Indebtedness of the Parent and Subsidiaries for such period plus all
Interest Expense of the Parent and Subsidiaries attributable to Identified
Property Indebtedness of the Parent and Subsidiaries for such period.

 

“Wachovia” means
Wachovia Bank, National Association, together with its successors and assigns.

 

“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, by 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 Times.

 

Unless otherwise indicated, all accounting terms,
ratios and measurements shall be interpreted or determined in accordance with
GAAP; provided that, if at any time any change in GAAP would affect the
computation of any financial ratio or requirement set forth in any Loan
Document, and either the Borrower or the Requisite Lenders shall so request,
the Agent, the Lenders and the Borrower shall negotiate in good faith to amend
such ratio or requirement to preserve the original intent thereof in light of
such change in GAAP (subject to the approval of the Requisite Lenders);
provided further that, until so amended, (i) such ratio or requirement
shall continue to be computed in accordance with GAAP prior to such change
therein and (ii) the Borrower shall provide to the Agent and the Lenders
financial statements and other documents required under this Agreement or as
reasonably requested hereunder setting forth a reconciliation between
calculations of such ratio or requirement made before and after giving effect
to such change in GAAP.  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

 

27

 

hereby
and (c) shall mean such document, instrument or agreement, or replacement
or predecessor thereto, as amended, supplemented, restated or otherwise
modified as of the date of this Agreement and from time to time thereafter to
the extent not prohibited 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 Parent or a Subsidiary of
such Subsidiary and a reference to an “Affiliate” means a reference to an
Affiliate of the Parent.  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 Charlotte, North Carolina time.

 

Section 1.3.  Financial Attributes of Non-Wholly Owned
Subsidiaries.

 

When determining compliance by the Borrower or the
Parent with any financial covenant contained in any of the Loan Documents, only
the pro rata share of the Borrower or the Parent, as applicable, of the
financial attributes of a Subsidiary that is not a Wholly Owned Subsidiary
shall be included.

 

ARTICLE II. CREDIT FACILITY

 

Section 2.1.  Revolving Loans.

 

(a)           Generally.  Subject to the terms and conditions hereof,
during the period from the Effective Date to but excluding the Termination
Date, each Lender severally and not jointly agrees to make Revolving Loans to
the Borrower in an aggregate principal amount at any one time outstanding up
to, but not exceeding, the amount of such Lender’s Commitment.  Subject to the terms and conditions of this
Agreement, during the period from the Effective Date to but excluding the
Termination Date, the Borrower may borrow, repay and reborrow Revolving Loans
hereunder.

 

(b)           Requesting
Revolving Loans.  The Borrower shall
give the Agent notice pursuant to a Notice of Borrowing or telephonic notice of
each borrowing of Revolving Loans.  Each
Notice of Borrowing shall be delivered to the Agent before 11:00 a.m. (i) in
the case of LIBOR Loans, on the date three Business Days prior to the proposed
date of such borrowing and (ii) in the case of Base Rate Loans, on the
date one Business Day prior to the proposed date of such borrowing.  Any such telephonic notice shall include all
information to be specified in a written Notice of Borrowing and shall be
promptly confirmed in writing by the Borrower pursuant to a Notice of Borrowing
sent to the Agent by telecopy on the same day of the giving of such telephonic
notice.  The Agent will transmit by
telecopy the Notice of Borrowing (or the information contained in such Notice
of Borrowing) to each Lender promptly upon receipt by the Agent.  Each Notice of Borrowing or telephonic notice
of each borrowing shall be irrevocable once given and binding on the Borrower.

 

(c)           Disbursements
of Revolving Loan Proceeds.  No later
than 1:00 p.m. on the date specified in the Notice of Borrowing, each
Lender will make available for the account of its

 

28

 

applicable Lending Office to the Agent at the
Principal Office, in immediately available funds, the proceeds of the Revolving
Loan to be made by such Lender.  With
respect to any borrowing of Revolving Loans, unless the Agent shall have been notified
by any Lender prior to the specified date of borrowing that such Lender does
not intend to make available to the Agent the Revolving Loan to be made by such
Lender on such date, the Agent may assume that such Lender will make the
proceeds of such Revolving Loan available to the Agent on the date of the
requested borrowing as set forth in the Notice of Borrowing 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.  Subject to satisfaction of
the applicable conditions set forth in Article V. for such borrowing, the
Agent will make the proceeds of such borrowing available to the Borrower no
later than 2:00 p.m. on the date and at the account specified by the
Borrower in such Notice of Borrowing.

 

Section 2.2.  Bid Rate Loans.

 

(a)           Bid
Rate Loans.  So long as the Parent
maintains an Investment Grade Rating, in addition to borrowings of Revolving
Loans, at any time during the period from the Effective Date to but excluding
the Termination Date, the Borrower may 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 10:00 a.m. 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 three (3) different Interest
Periods in each Bid Rate Quote Request; 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:

 

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

 

(ii)           the aggregate amount of such Bid Rate Borrowing, which
(x) shall be in the minimum amount of $2,000,000 and integral multiples of
$500,000 and (y) shall not cause any of the limits specified in Section 2.15.
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.

 

29

 

Except
as otherwise provided in this subsection (b), no Bid Rate Quote Request
shall be given within five Business Days (or such other number of days as the
Borrower and the Agent, with the consent of the Requisite Lenders, may agree)
of the giving of any other Bid Rate Quote Request.

 

(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 one or more Bid Rate Quotes for each such Interest Period.  Each Bid Rate Quote must be submitted to the
Agent not later than 10:00 a.m. (x) on the proposed date of
borrowing, in the case of an Absolute Rate Auction and (y) on the date
three Business Days prior to the proposed date of borrowing, in the case of a
LIBOR Auction; provided that the Lender then acting as Agent may submit a Bid
Rate Quote only if it notifies the Borrower of the terms of the offer contained
therein not later than 9:00 a.m. (x) on the proposed date of such
borrowing, in the case of an Absolute Rate Auction and (y) on the date three
Business Days prior to the proposed date of borrowing, in the case of a LIBOR
Auction.  Subject to Articles V. and X., any
Bid Rate Quote so made shall be irrevocable except with the consent of the
Agent given at the request of the Borrower. 
Any Bid Rate Loan may be funded by a Lender’s Designated Lender (if any)
as provided in Section 12.5.(h), 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 1/10,000th of
1%) offered for each such Bid 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 (rounded upwards, if necessary, to the nearest
1/1,000th of 1%) to be added to (or subtracted from) the applicable LIBOR; and

 

(E)           the identity of the quoting Lender.

 

30

 

Unless otherwise agreed by the Agent and the Borrower,
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 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 10:30 a.m. (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 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 (identifying the Lender that made each Bid Rate Quote).

 

(e)           Acceptance
by Borrower.

 

(i)            Not later than 11:00 a.m. (x) on the proposed date
of borrowing, in the case of an Absolute Rate Auction and (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 Bid Rate Quotes 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 Bid Rate Quotes for each Interest Period that are
accepted.  The failure of the Borrower to
give such notice by such time shall constitute nonacceptance.  The Agent shall promptly notify each affected
Lender.  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 3.5., and with all other Bid
Rate Loans accepted in such Auction shall not cause the limits specified in Section 2.15.
to be violated;

 

(C)           acceptance of Bid Rate Quotes 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;

 

31

 

(D)          the Borrower may not accept any Bid Rate Quote that fails
to comply with Section 2.2.(c) or otherwise fails to comply with the
requirements of this Agreement; and

 

(E)           any acceptance in part shall be in a minimum amount of
$1,000,000 and integral multiples of $500,000 in excess thereof.

 

(ii)           If Bid Rate Quotes 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 Bid Rate Quotes
are permitted to be accepted for the related Interest Period, the principal
amount of Bid Rate Loans in respect of which such Bid Rate Quotes are accepted
shall be allocated by the Agent among such Lenders in proportion to the
aggregate principal amount of such Bid Rate Quotes.  Determinations by the Agent of the amounts of
Bid Rate Loans shall be conclusive in the absence of manifest error.

 

(f)            Obligation
to Make Bid Rate Loans.  The Agent
shall promptly (and in any event not later than 12:00 noon (x) 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 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 12.5.(h).  Any Designated Lender which funds a Bid Rate
Loan shall on and after the time of such funding become the obligee in respect
of 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 1:30 p.m. 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 no later than 2:00 p.m. 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 Sections 2.12. and 2.15.,
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, during the period from the Effective Date to but excluding
the Termination Date, the Swingline Lender agrees to make Swingline Loans to
the Borrower in an aggregate principal amount at any one time outstanding up
to, but not exceeding, the amount of the Swingline Commitment.  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

 

32

 

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 or telephonic notice of each borrowing of a
Swingline Loan.  Each Notice of Swingline
Borrowing shall be delivered to the Swingline Lender no later than 3:00 p.m.
on the proposed date of such borrowing. 
Any such notice given telephonically shall include all information to be
specified in a written Notice of Swingline Borrowing and shall be promptly
confirmed in writing by the Borrower pursuant to a Notice of Swingline
Borrowing sent to the Swingline Lender by telecopy on the same day of the
giving of such telephonic notice.  On the
date of the requested Swingline Loan and subject to satisfaction of the
applicable conditions set forth in Article V. 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 not later than 4:00 p.m.
on such date.

 

(c)           Interest.  Swingline Loans shall bear interest at a per
annum rate equal to LIBOR for an interest period of 7 days plus the
Applicable Margin for LIBOR Loans. 
Interest payable on Swingline Loans is solely for the account of the
Swingline Lender.  All accrued and unpaid
interest on Swingline Loans shall be payable on the dates and in the manner
provided in Section 2.5. with respect to interest on Base Rate Loans
(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 $100,000 and integral multiples of
$100,000 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. on the date
of such prepayment.  The Swingline Loans
shall, in addition to this Agreement, be evidenced by the Swingline Note.

 

(e)           Repayment
and Participations of Swingline Loans. 
The Borrower agrees to repay each Swingline Loan within one Business Day
of demand therefor by the Swingline Lender and in any event, within 5 days
after the date such Swingline Loan was made; provided, that the proceeds of a
Swingline Loan may not be used to repay a 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 Termination Date (or such
earlier date as the Swingline Lender and the Borrower may agree in writing).  In lieu of demanding repayment of any
outstanding Swingline Loan from the Borrower, if the applicable conditions
contained in Article V. would permit the making of Base Rate Loans, the
Swingline Lender may (and shall if the Borrower has failed to repay a Swingline
Loan on the due date thereof), on behalf of the Borrower (which hereby
irrevocably directs the Swingline Lender to act on its behalf for such
purpose), request a borrowing of Base Rate Loans from the Lenders in an amount
equal to the

 

33

 

principal balance of such Swingline
Loan.  The amount limitations of Section 3.5.(a) shall
not apply to any borrowing of Base Rate Loans made pursuant to this
subsection.  The Swingline Lender shall
give notice to the Agent of any such borrowing of Base Rate Loans not later
than 12:00 noon on the proposed date of such borrowing and the Agent shall give
prompt notice of such borrowing to the Lenders. 
No later than 2:00 p.m. on such date, each Lender will make
available to the Agent at the Principal Office for the account of Swingline
Lender, in immediately available funds, the proceeds of the Base Rate Loan to
be made by such Lender and, to the extent of such Base Rate Loan, such Lender’s
participation in the Swingline Loan so repaid shall be deemed to be funded by
such Base Rate Loan.  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. 
At the time each Swingline Loan is made, each Lender shall automatically
(and without any further notice or action) be deemed to have purchased from the
Swingline Lender, without recourse or warranty, an undivided interest and
participation to the extent of such Lender’s Commitment Percentage in such
Swingline Loan.  If the Lenders are
prohibited from making Loans required to be made under this subsection for
any reason, including without limitation, the occurrence of any Default or
Event of Default described in Section 10.1.(f) or 10.1.(g), upon
notice from the Agent or the Swingline Lender, each Lender severally agrees to
pay to the Agent for the account of the Swingline Lender in respect of such
participation the amount of such Lender’s Commitment Percentage of each
outstanding Swingline Loan.  If such
amount is not in fact made available to the Agent 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 demand therefor by the
Agent or the Swingline Lender, 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 such Lender 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).  A Lender’s obligation to make payments in
respect of 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 Section 10.1.(f) or 10.1.(g)) 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.

 

Section 2.4.  Letters of Credit.

 

(a)           Letters
of Credit.  Subject to the terms and
conditions of this Agreement, the Agent, on behalf of the Lenders, agrees to
issue for the account of the Borrower during the

 

34

 

period from and including the Effective Date
to, but excluding, the date 30 days prior to the Termination Date one or more
letters of credit (each a “Letter of Credit”) up to a maximum aggregate Stated
Amount at any one time outstanding not to exceed the L/C Commitment Amount.

 

(b)           Terms
of Letters of Credit.  At the time of
issuance, the form, terms and conditions of each Letter of Credit, and of any
drafts or acceptances thereunder, shall be subject to approval by the Agent and
the Borrower.  At the Borrower’s request,
a Letter of Credit may provide that presentment can be made to an office of the
Agent located in New York, New York as specified by the Agent; provided,
however, that such Letter of Credit may (A) provide that payment by the
Agent will be from a different office of the Agent and (B) require, as a
condition to payment, that the beneficiary of such Letter of Credit deliver
copies of the drawing documents by telecopy to another office of the
Agent.  Notwithstanding the foregoing, in
no event may the expiration date of any Letter of Credit extend beyond the
earlier of (i) the date one year from its date of issuance or (ii) the
Termination Date; provided, however, a Letter of Credit having an initial term
not in excess of one year may contain a provision providing for the automatic
extension of the expiration date for a period of up to one additional year in
the absence of a notice of non-renewal from the Agent but in no event shall any
such provision permit the extension of the expiration date of such Letter of
Credit beyond the Termination Date; provided, that a Letter of Credit that
contains such an automatic extension provision may provide for an extension of
its expiration date to a date not more than one year beyond the Termination
Date so long as the Borrower delivers to the Agent at least 20 days prior to
the Termination Date (i) either (x) cash collateral for and in an
amount equal to the Stated Amount of such Letter of Credit on terms reasonably
acceptable to the Agent or (y) a back-up letter of credit issued by a
financial institution located in the United States having a Credit Rating of
AA/Aa2 or better and (ii) a reimbursement agreement in form and substance
acceptable to the Agent and such other documents requested by the Agent
evidencing the Borrower’s reimbursement obligations in respect of such Letter
of Credit.  Upon the Borrower’s
compliance with the terms of the immediately preceding proviso and termination
of this Agreement in accordance with Section 12.10., no Lender (other than
the Agent as issuer of such Letter of Credit) shall have any obligations with
respect to any such Letter of Credit.

 

(c)           Requests
for Issuance of Letters of Credit. 
The Borrower shall give the Agent written notice (or telephonic notice
promptly confirmed in writing) at least 5 Business Days prior to the requested
date of issuance of a Letter of Credit, such notice to describe in reasonable
detail the proposed terms of such Letter of Credit and the nature of the
transactions or obligations proposed to be supported by such Letter of Credit,
and in any event shall set forth with respect to such Letter of Credit the
proposed (i) Stated Amount, (ii) beneficiary, and (iii) expiration
date.  The Borrower shall also execute
and deliver such customary letter of credit application forms as requested from
time to time by the Agent.  Provided the
Borrower has given the notice prescribed by the first sentence of this subsection and
subject to the other terms and conditions of this Agreement, including the
satisfaction of any applicable conditions precedent set forth in Article V.,
the Agent shall issue the requested Letter of Credit on the requested date of
issuance for the benefit of the stipulated beneficiary.  Upon the written request of the Borrower, the
Agent shall deliver to the Borrower a copy of each issued Letter of Credit
within a reasonable time after the date of issuance thereof.  To the extent any term of a Letter of Credit
Document is

 

35

 

inconsistent with a term of any Loan
Document, the term of such Loan Document shall control. In addition, the
parties agree that (x) any provision of a form letter of credit
application submitted by the Borrower in connection with a Letter of Credit
providing for the granting of a Lien shall be of no force or effect and
(y) notwithstanding anything to the contrary contained in any such letter
of credit application, no event of default shall be deemed to have occurred
under such application unless an Event of Default shall have occurred
hereunder.

 

(d)           Reimbursement
Obligations.  Upon receipt by the
Agent from the beneficiary of a Letter of Credit of any demand for payment
under such Letter of Credit, the Agent shall promptly notify the Borrower of the
amount to be paid by the Agent as a result of such demand and the date on which
payment is to be made by the Agent to such beneficiary in respect of such
demand; provided, however, the Agent’s failure to give, or delay in giving,
such notice shall not discharge the Borrower in any respect from the applicable
Reimbursement Obligation.  The Borrower
hereby unconditionally and irrevocably agrees to pay and reimburse the Agent
for the amount of each demand for payment under such Letter of Credit on or
prior to the date on which payment is to be made by the Agent to the
beneficiary thereunder, without presentment, demand, protest or other
formalities of any kind (other than notice as provided in this
subsection).  Upon receipt by the Agent
of any payment in respect of any Reimbursement Obligation, the Agent shall
promptly pay to each Lender that has acquired a participation therein under the
second sentence of Section 2.4.(i) such Lender’s Commitment
Percentage of such payment.

 

(e)           Manner
of Reimbursement.  Upon its receipt
of a notice referred to in the immediately preceding subsection (d), the
Borrower shall advise the Agent whether or not the Borrower intends to borrow
hereunder to finance its obligation to reimburse the Agent for the amount of
the related demand for payment and, if it does, the Borrower shall submit a
timely request for such borrowing as provided in the applicable provisions of
this Agreement.  If the Borrower fails to
so advise the Agent, or if the Borrower fails to reimburse the Agent for a
demand for payment under a Letter of Credit by the date of such payment, then (i) if
the applicable conditions contained in Article V. would permit the making
of Revolving Loans, the Borrower shall be deemed to have requested a borrowing
of Revolving Loans (which shall be Base Rate Loans) in an amount equal to the
unpaid Reimbursement Obligation and the Agent shall give each Lender prompt
notice of the amount of the Revolving Loan to be made available to the Agent
not later than 1:00 p.m. and (ii) if such conditions would not permit
the making of Revolving Loans, the provisions of subsection (j) of this Section shall
apply.  The limitations of Section 3.5.(a) shall
not apply to any borrowing of Base Rate Loans under this subsection.

 

(f)            Effect
of Letters of Credit on Commitments. 
Upon the issuance by the Agent of any Letter of Credit and until such
Letter of Credit shall have expired or been terminated, the Commitment of each
Lender shall be deemed to be utilized for all purposes of this Agreement in an amount
equal to the product of (i) such Lender’s Commitment Percentage and (ii) the
sum of (A) the Stated Amount of such Letter of Credit plus (B) any
related Reimbursement Obligations then outstanding.

 

(g)           Agent’s
Duties Regarding Letters of Credit; Unconditional Nature of Reimbursement
Obligations.  In examining documents
presented in connection with drawings under Letters of Credit and making
payments under Letters of Credit against such documents,

 

36

 

the Agent shall only be required to use the
same standard of care as it uses in connection with examining documents
presented in connection with drawings under letters of credit in which it has
not sold participations and making payments under such letters of credit.  The Borrower assumes all risks of the acts
and omissions of, or misuse of the Letters of Credit by, the respective
beneficiaries of such Letters of Credit. 
In furtherance and not in limitation of the foregoing, neither the Agent
nor any of the Lenders shall be responsible for, and the Borrower’s obligations
in respect of the Letters of Credit shall not be affected in any manner by, (i) the
form, validity, sufficiency, accuracy, genuineness or legal effects of any
document submitted by any party in connection with the application for and
issuance of or any drawing honored under any Letter of Credit even if it should
in fact prove to be in any or all respects invalid, insufficient, inaccurate,
fraudulent or forged; (ii) the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign any Letter of
Credit, or the rights or benefits thereunder or proceeds thereof, in whole or
in part, which may prove to be invalid or ineffective for any reason; (iii) failure
of the beneficiary of any Letter of Credit to comply fully with conditions
required in order to draw upon such Letter of Credit; (iv) errors,
omissions, interruptions or delays in transmission or delivery of any messages,
by mail, cable, telex, telecopy or otherwise, whether or not they be in cipher;
(v) errors in interpretation of technical terms; (vi) any loss or
delay in the transmission or otherwise of any document required in order to
make a drawing under any Letter of Credit, or of the proceeds thereof; (vii) the
misapplication by the beneficiary of the proceeds of any drawing under any
Letter of Credit; or (viii) any consequences arising from causes beyond
the control of the Agent or the Lenders. 
None of the above shall affect, impair or prevent the vesting of any of
the Agent’s or any Lender’s rights or powers hereunder.  Any action taken or omitted to be taken by
the Agent under or in connection with any Letter of Credit, if taken or omitted
in the absence of gross negligence or willful misconduct (as determined by a
court of competent jurisdiction in a final, non-appealable judgment), shall not
create against the Agent or any Lender any liability to the Borrower or any
Lender.  In this regard, the obligation of
the Borrower to reimburse the Agent for any drawing made under any Letter of
Credit, and to repay any Revolving Loan made pursuant to the second sentence of
the immediately preceding subsection (e), shall be absolute, unconditional
and irrevocable and shall be paid strictly in accordance with the terms of this
Agreement and any other applicable Letter of Credit Document under all
circumstances whatsoever, including without limitation, the following
circumstances: (A) any lack of validity or enforceability of any Letter of
Credit Document or any term or provisions therein; (B) any amendment or
waiver of or any consent to departure from all or any of the Letter of Credit
Documents; (C) the existence of any claim, setoff, defense or other right
which the Borrower may have at any time against the Agent, any Lender, any
beneficiary of a Letter of Credit or any other Person, whether in connection
with this Agreement, the transactions contemplated hereby or in the Letter of
Credit Documents or any unrelated transaction; (D) any breach of contract
or dispute between the Borrower, the Agent, any Lender or any other Person; (E) any
demand, statement or any other document presented under a Letter of Credit
proving to be forged, fraudulent, invalid or insufficient in any respect or any
statement therein or made in connection therewith being untrue or inaccurate in
any respect whatsoever; (F) any non-application or misapplication by the
beneficiary of a Letter of Credit of the proceeds of any drawing under such
Letter of Credit; (G) payment by the Agent under any Letter of Credit
against presentation of a draft or certificate which does not strictly comply
with the terms of such Letter of Credit; and (H) any other act, omission
to act, delay or circumstance whatsoever that might, but for the provisions of
this

 

37

 

Section, constitute a legal or equitable
defense to or discharge of the Borrower’s Reimbursement Obligations.  Notwithstanding anything to the
contrary contained in this Section or Section 12.9.,
but not in limitation of the Borrower’s unconditional obligation to reimburse
the Agent for any drawing made under a Letter of Credit as provided in this Section and
to repay any Revolving Loan made pursuant to the second sentence of the
immediately preceding subsection (e), the Borrower shall have no
obligation to indemnify the Agent or any Lender in respect of any liability
incurred by the Agent or such Lender arising solely out of the gross negligence
or willful misconduct of the Agent or such Lender in respect of a Letter of
Credit as determined by a court of competent
jurisdiction in a final, non-appealable judgment.  Except as otherwise provided in this Section,
nothing in this Section shall affect any rights the Borrower may have with
respect to the gross negligence or willful misconduct of the Agent or any
Lender with respect to any Letter of Credit.

 

(h)           Amendments,
Etc.  The issuance by the Agent of
any amendment, supplement or other modification to any Letter of Credit shall
be subject to the same conditions applicable under this Agreement to the
issuance of new Letters of Credit (including, without limitation, that the
request therefor be made through the Agent), and no such amendment, supplement
or other modification shall be issued unless either (i) the respective
Letter of Credit affected thereby would have complied with such conditions had
it originally been issued hereunder in such amended, supplemented or modified
form or (ii) the Requisite Lenders (or all of the Lenders if required by Section 12.6.)
shall have consented thereto.  In
connection with any such amendment, supplement or other modification, the
Borrower shall pay the Fees, if any, payable under the last sentence of Section 3.6.(c).

 

(i)            Lenders’
Participation in Letters of Credit. 
Immediately upon the issuance by the Agent of any Letter of Credit each
Lender shall be deemed to have irrevocably and unconditionally purchased and
received from the Agent, without recourse or warranty, an undivided interest
and participation to the extent of such Lender’s Commitment Percentage of the
liability of the Agent with respect to such Letter of Credit, and each Lender
thereby shall absolutely, unconditionally and irrevocably assume, as primary
obligor and not as surety, and shall be unconditionally obligated to the Agent
to pay and discharge when due, such Lender’s Commitment Percentage of the Agent’s
liability under such Letter of Credit. 
In addition, upon the making of each payment by a Lender to the Agent in
respect of any Letter of Credit pursuant to the immediately following subsection (j),
such Lender shall, automatically and without any further action on the part of
the Agent or such Lender, acquire (i) a participation in an amount equal
to such payment in the Reimbursement Obligation owing to the Agent by the
Borrower in respect of such Letter of Credit and (ii) a participation in a
percentage equal to such Lender’s Commitment Percentage in any interest or
other amounts payable by the Borrower in respect of such Reimbursement
Obligation (other than the Fees payable to the Agent pursuant to the third and
last sentences of Section 3.6.(c)).

 

(j)            Payment
Obligation of Lenders.  Each Lender
severally agrees to pay to the Agent on demand in immediately available funds
in Dollars the amount of such Lender’s Commitment Percentage of each drawing
paid by the Agent under each Letter of Credit to the extent such amount is not
reimbursed by the Borrower pursuant to Section 2.4.(d); provided, however,
that in respect of any drawing under any Letter of Credit, the maximum amount
that any Lender shall be

 

38

 

required to fund, whether as a Revolving Loan
or as a participation, shall not exceed such Lender’s Commitment Percentage of
such drawing.  If the notice referenced
in the second sentence of Section 2.4.(e) is received by a Lender not
later than 11:00 a.m., then such Lender shall make such payment available
to the Agent not later than 2:00 p.m. on the date of demand therefor;
otherwise, such payment shall be made available to the Agent not later than
1:00 p.m. on the next succeeding Business Day.  Each Lender’s obligation to make such
payments to the Agent under this subsection, and the Agent’s right to receive
the same, shall be absolute, irrevocable and unconditional and shall not be
affected in any way by any circumstance whatsoever, including without
limitation, (i) the failure of any other Lender to make its payment under
this subsection, (ii) the financial condition of the Borrower or any other
Loan Party, (iii) the existence of any Default or Event of Default,
including any Event of Default described in Section 10.1.(f) or 10.1.(g) or
(iv) the termination of the Commitments. 
Each such payment to the Agent shall be made without any offset,
abatement, withholding or deduction whatsoever.

 

(k)           Information
to Lenders. The Agent shall periodically deliver to the Lenders information
setting forth the Stated Amount of all outstanding Letters of Credit.  Other than as set forth in this subsection,
the Agent shall have no duty to notify the Lenders regarding the issuance or
other matters regarding Letters of Credit issued hereunder.  The failure of the Agent to perform its
requirements under this subsection shall not relieve any Lender from its
obligations under Section 2.4.(j).

 

Section 2.5.  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) plus the Applicable Margin;

 

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

 

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

 

(iv)          if 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.

 

Notwithstanding
the foregoing, while an Event of Default exists, 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, on all
Reimbursement Obligations and on any other amount payable by the Borrower to
such Lender hereunder or under any of the other

 

39

 

Loan
Documents (including without limitation, accrued but unpaid interest to the
extent permitted under Applicable Law).

 

(b)           Payment
of Interest.  Accrued and unpaid
interest on each Loan shall be payable (i) in the case of a Base Rate
Loan, monthly in arrears on the first day of each calendar month, (ii) in
the case of a LIBOR Loan or a Bid Rate Loan, in arrears on the last day of each
Interest Period therefor, and, if such Interest Period is longer than three
months, at three-month intervals following the first day of such Interest
Period, and (iii) in the case of any Loan, in arrears upon the payment,
prepayment or Continuation thereof or the Conversion of such Loan to a Loan of
another Type (but only on the principal amount so paid, prepaid, Continued or
Converted).  Interest payable at the
Post-Default Rate shall be payable from time to time on demand.  Promptly after the determination of any
interest rate provided for herein or any change therein, the Agent shall give
notice thereof to the Lenders to which such interest is payable and to the Borrower.  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.

 

Section 2.6.  Number of Interest Periods.

 

There may be no more than 10 different Interest
Periods for LIBOR Loans and Bid Rate Loans, collectively outstanding at the
same time.

 

Section 2.7.  Repayment of Loans.

 

(a)           Revolving
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.

 

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

 

Section 2.8.  Prepayments.

 

(a)           Optional.  Subject to Section 4.4., the Borrower
may prepay any Loan (other than a Bid Rate Loan) at any time without premium or
penalty.  Bid Rate Loans may not be
prepaid at the option of the Borrower without the prior consent of the Lender
to which such Bid Rate Loan is owed.  The
Borrower shall give the Agent at least one Business Day’s prior written notice
of the prepayment of any Revolving Loan.

 

(b)           Mandatory.  If at any time the aggregate principal amount
of all outstanding Revolving Loans, together with the aggregate amount of all
Letter of Credit Liabilities, the aggregate principal amount of all outstanding
Bid Rate Loans and the aggregate principal amount of all outstanding Swingline
Loans, exceeds the aggregate amount of the Commitments in effect at such time,
the Borrower shall immediately pay to the Agent for the accounts of the Lenders
the amount of such excess.  Such payment
shall be applied to pay all amounts of principal outstanding on the Loans and
any Reimbursement Obligations pro rata in accordance with Section 3.2. and
if any Letters of Credit are outstanding at such time the remainder, if any,
shall be deposited into the Collateral Account for application to any
Reimbursement Obligations.

 

40

 

If the Borrower is required to pay any
outstanding LIBOR Loans or Bid Rate Loans by reason of this Section prior
to the end of the applicable Interest Period therefor, the Borrower shall pay
all amounts due under Section 4.4.

 

Section 2.9.  Continuation.

 

So long as no Default or Event of Default shall
exist, 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 last day of the immediately 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 11:00 a.m. on the third Business Day prior to the date of any such
Continuation.  Such notice by the
Borrower of a Continuation shall be by telephone or telecopy, confirmed
immediately in writing if by telephone, in the form of a Notice of
Continuation, specifying (a) the proposed date of such Continuation, (b) the
LIBOR Loans and portions 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, or if a Default or Event of Default shall exist on the last day of the
current Interest Period therefor, such Loan will automatically, on the last day
of such Interest Period, Convert into a Base Rate Loan notwithstanding the
first sentence of Section 2.10. or the Borrower’s failure to comply with
any of the terms of such Section.

 

Section 2.10.  Conversion.

 

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; provided, however, a
Base Rate Loan may not be Converted to a LIBOR Loan if a Default or Event of
Default shall exist.  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 11:00 a.m. on the Business Day prior to the date of any
proposed Conversion into Base Rate Loans and on the third Business Day 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, or other similar form of
transmission, of the proposed Conversion. 
Subject to the restrictions specified above, each Notice of Conversion
shall be by telephone (confirmed immediately in writing) or 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.

 

41

 

Section 2.11.  Notes.

 

(a)           Revolving
Note.  The Revolving Loans made by
each Lender shall, in addition to this Agreement, also be evidenced by a
promissory note of the Borrower substantially in the form of Exhibit K
(each 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.

 

(b)           Bid
Rate Notes.  The Bid Rate Loans made
by any Lender shall, in addition to this Agreement, also be evidenced by a
promissory note of the Borrower substantially in the form of Exhibit L
(each a “Bid Rate Note”), payable to the order of such Lender and otherwise
duly completed.

 

(c)           Records.  The date, amount, interest rate, Type and
duration of Interest Periods (if applicable) of each Loan made by each Lender
to the Borrower, and each payment made on account of the principal thereof,
shall be recorded by such Lender on its books and such entries shall be binding
on the Borrower, absent manifest error; provided, however, that the failure of
a Lender to make any such record shall not affect the obligations of the
Borrower under any of the Loan Documents.

 

(d)           Lost,
Stolen, Destroyed or Mutilated Notes. Upon receipt by the Borrower of (i) written
notice from a Lender that a Note of such Lender has been lost, stolen, destroyed
or mutilated, and (ii) (A) in the case of loss, theft or destruction,
an unsecured agreement of indemnity from such Lender in form reasonably
satisfactory to the Borrower, or (B) in the case of mutilation, upon
surrender and cancellation of such Note, the Borrower shall at its own expense
execute and deliver to such Lender a new Note dated the date of such lost,
stolen, destroyed or mutilated Note which Note shall recite that it is given to
replace the lost, stolen, destroyed or mutilated Note, as applicable.

 

Section 2.12.  Voluntary Reductions of the Commitment.

 

The Borrower shall have the right to terminate or
reduce the aggregate unused amount of the Commitments (for which purpose use of
the Commitments shall be deemed to include the aggregate amount of Letter of
Credit Liabilities and the aggregate principal amount of all outstanding
Swingline Loans and Bid Rate Loans) at any time and from time to time without
penalty or premium upon not less than 5 Business Days prior written 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 and shall be
irrevocable once given and effective only upon receipt by the Agent.  The Agent will promptly transmit such notice
to each Lender.  The Commitments, once
terminated or reduced, may not be increased or reinstated.

 

Section 2.13.  Extension of Termination Date.

 

The Borrower shall have the right, exercisable one
time, to extend the Termination Date by one year.  The Borrower may exercise such right only by
executing and delivering to the Agent at least 90 days but not more than 180
days prior to the current Termination Date, a

 

42

 

written request for such extension (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 effective upon receipt of the Extension Request and
payment of the fee referred to in the following clause (b): (a) immediately
prior to such extension and immediately after giving effect thereto, (i) no
Default or Event of Default shall exist and (ii) 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 on and as of the date of such extension 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
correct in all material respects on and as of such earlier date) and except for
changes in factual circumstances not prohibited under the Loan Documents and (b) the
Borrower shall have paid the Fees payable under Section 3.6.(d).

 

Section 2.14.  Expiration or Maturity Date of Letters of
Credit Past Termination Date.

 

If on the date the Commitments are terminated or
reduced to zero (whether voluntarily, by reason of the occurrence of an Event
of Default or otherwise), there are any Letters of Credit outstanding
hereunder, the Borrower shall, on such date, pay to the Agent an amount of
money equal to the Stated Amount of such Letter(s) of Credit for deposit into
the Collateral Account.

 

Section 2.15.  Amount Limitations.

 

Notwithstanding any other term of this Agreement or
any other Loan Document, no Lender shall be required to make a Loan, no Lender
shall make any Bid Rate Loan, the Agent shall not be required to issue a Letter
of Credit and no reduction of the Commitments pursuant to Section 2.12.
shall take effect, if immediately after the making of such Loan, the issuance
of such Letter of Credit or such reduction in the Commitments:

 

(a)           the
aggregate principal amount of all outstanding Revolving Loans, together with
the aggregate principal amount of all outstanding Bid Rate Loans, the aggregate
principal amount of all outstanding Swingline Loans and the aggregate amount of
all Letter of Credit Liabilities, would exceed the aggregate amount of the
Commitments at such time; or

 

(b)           the
aggregate principal amount of all outstanding Bid Rate Loans would exceed 50%
of the aggregate amount of the Commitments at such time.

 

Section 2.16.  Increase of Commitments.

 

With the prior consent of the Agent, the Borrower
shall have the right at any time and from time to time during the term of this
Agreement to request increases in the aggregate amount of the Commitments
(provided that after giving effect to any increases in the Commitments pursuant
to this Section, the aggregate amount of the Commitments may not exceed
$800,000,000) by providing written notice to the Agent, which notice shall be
irrevocable once given.  Each such
increase in the Commitments must be in an aggregate minimum amount of
$25,000,000 and integral multiples of $5,000,000 in excess thereof.  No Lender shall be required

 

43

 

to increase its Commitment and any new Lender
becoming a party to this Agreement in connection with any such requested
increase must be an Eligible Assignee. 
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 increases its Commitment, in the case of an
existing Lender) (and as a condition thereto) purchase from the other Lenders
its Commitment Percentage (or in the case of an existing Lender, the increase
in the amount of its Commitment Percentage, in each case as determined after
giving effect to the increase of Commitments) of any outstanding Revolving
Loans, by making available to the Agent for the account of such other Lenders
at the Principal Office, in same day funds, an amount equal to the sum of (A) the
portion of the outstanding principal amount of such Revolving Loans to be
purchased by such Lender plus (B) the aggregate amount of payments
previously made by the other Lenders under Section 2.4.(j) which have not
been repaid plus (C) interest accrued and unpaid to and as of such date on
such portion of the outstanding principal amount of such Revolving Loans.  The Borrower shall pay to the Lenders amounts
payable, if any, to such Lenders under Section 4.4. as a result of the
prepayment of any such Revolving Loans. 
No increase of the Commitments may be effected under this Section if
(x) a Default or Event of Default shall be in existence on the effective
date of such increase or (y) any representation or warranty made or deemed
made by the Borrower or any other Loan Party in any Loan Document to which any
such Loan Party is a party is not (or would not be) true or correct on the effective
date of such increase (except for representations or warranties which expressly
relate solely to an earlier date).  In
connection with any increase in the aggregate amount of the Commitments
pursuant to this subsection, (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 within 2 Business
Days of the effectiveness of the applicable increase in the aggregate amount of
Commitments.

 

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 at its Principal Office, not later than 2:00 p.m. 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).  Subject to Section 10.3., the
Borrower may, at the 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 shall be paid to such Lender at the applicable
Lending Office of such Lender no later than 5:00 p.m. on the date of
receipt.  If the Agent fails to pay such
amount to a Lender as provided in the previous sentence, 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

 

44

 

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 the Lenders under Section 2.1.(a), 2.3.(e) and 2.4.(e) shall
be made from the Lenders, each payment of the Fees under Section 3.6.(a),
the first sentence of Section 3.6.(b) and Section 3.6.(c) shall
be made for the account of the Lenders, and each termination or reduction of
the amount of the Commitments under Section 2.12. 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 making, Conversion and
Continuation of Revolving Loans of a particular Type (other than Conversions
provided for by Section 4.6.) shall be made pro rata among the Lenders
according to the amounts of their respective Commitments (in the case of making
of Revolving Loans) or their respective Revolving Loans (in the case of
Conversions and Continuations of Revolving Loans) and the then current Interest
Period for each Lender’s portion of each Revolving Loan of such Type shall be
coterminous; (e) the Lenders’ participation in, and payment obligations in
respect of, Letters of Credit under Section 2.4., shall be pro rata in
accordance with their respective Commitments; (f) the Lenders’
participation in, and payment obligations in respect of, Swingline Loans under Section 2.3.,
shall be pro rata in accordance with their respective Commitments; and (g) each
mandatory prepayment of principal of Bid Rate Loans by the Borrower pursuant to
Section 2.8.(b) 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.  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 and
funded a participating interest in any such Swingline Loan pursuant to Section 2.3.(e),
in which case such payments shall be pro rata in accordance with such
participating interests).

 

Section 3.3.  Sharing of Payments, Etc.

 

If a Lender shall obtain payment of any principal
of, or interest on, any Loan made by it to the Borrower 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 to a Lender not in
accordance with the terms of this Agreement and such payment should be
distributed to the Lenders pro rata in accordance with Section 3.2. or Section 10.3.,
as applicable, such Lender shall promptly purchase from the 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 be incurred
by such Lender in obtaining or preserving such benefit) pro rata in accordance

 

45

 

with Section 3.2. or Section 10.3.,
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 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.

 

Section 3.5.  Minimum Amounts.

 

(a)           Borrowings
and Conversions.  Except as otherwise
provided in Sections 2.3.(e) and 2.4.(e), 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, Conversion and Continuation of LIBOR Loans shall be in an aggregate
minimum amount of $1,000,000 and integral multiples of $1,000,000 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
$500,000 in excess thereof (or, if less, the aggregate principal amount of
Revolving Loans then outstanding).

 

(c)           Reductions
of Commitments.  Each reduction of
the Commitments under Section 2.12. shall be in an aggregate minimum
amount of $50,000,000 and integral multiples of $10,000,000 in excess thereof.

 

(d)           Letters
of Credit.  The initial Stated Amount
of each Letter of Credit shall be at least $100,000.

 

Section 3.6.  Fees.

 

(a)           Unused
Fee. During the period from the Effective Date to but excluding the
Investment Grade Rating Date, the Borrower agrees to pay to the Agent for the
account of the

 

46

 

Lenders an unused facility fee with respect
to the average daily difference between the (i) aggregate amount of the
Commitments and (ii) the aggregate principal amount of all outstanding
Revolving Loans plus the aggregate amount of all Letter of Credit Liabilities
(the “Unused Amount”).  Such fee shall be
computed by multiplying the Unused Amount with respect to such quarter by the
corresponding per annum rate set forth below:

 

	
  Unused Amount

  	
   

  	
  Unused Fee

  	
   

  
	
  > 50% of
  the aggregate amount of Commitments

  	
   

  	
  0.25

  	
  %

  
	
  < 50% of
  the aggregate amount of Commitments

  	
   

  	
  0.125

  	
  %

  

 

Such
fee shall be payable in arrears on the last day of each March, June, September or
December of each calendar year.  Any
such accrued and unpaid fee shall also be payable on the Termination Date or
any earlier date of termination of the Commitments or reduction of the
Commitments to zero.

 

(b)           Facility
Fees.  On and at all times after the
Investment Grade Rating Date, the Borrower agrees to pay to the Agent for the
account of each Lender a facility fee equal to the average daily amount of the
Commitment of such Lender (whether or not utilized) times the Facility Fee for
the period from and including the Investment Grade Rating Date to but excluding
the date such Commitment is terminated or reduced to zero or the Termination
Date, such fee to be paid in arrears on (i) the last day of March, June, September and
December in each year, (ii) the date of each reduction in the
Commitments (but only on the amount of the reduction) and (iii) on the
Termination Date.

 

(c)           Letter
of Credit Fees.  The Borrower agrees
to pay to the Agent for the account of each Lender a letter of credit fee at a
rate per annum equal to the Applicable Margin for LIBOR Loans (or while an
Event of Default exists, at a per annum rate equal to 4.0%) times the daily
average Stated Amount of each Letter of Credit for the period from and
including the date of issuance of such Letter of Credit (x) through and
including the date such Letter of Credit expires or is terminated or (y) to
but excluding the date such Letter of Credit is drawn in full and is not
subject to reinstatement, as the case may be. 
The fees provided for in the immediately preceding sentence shall be
nonrefundable and payable in arrears on (i) the last day of March, June, September and
December in each year, (ii) the Termination Date, (iii) the date
the Commitments are terminated or reduced to zero and (iv) thereafter from
time to time on demand of the Agent.  In
addition, the Borrower shall pay to the Agent for its own account and not the
account of any Lender, an issuance fee in respect of each Letter of Credit
equal to the greater of (i) $500 or (ii) one-eighth of one percent
(0.125%) per annum on the initial Stated Amount of such Letter of Credit
payable (A) for the period from and including the date of issuance of such
Letter of Credit through and including the expiration date of such Letter of
Credit and (B) if the expiration date of any Letter of Credit is extended
(whether as a result of the operation of an automatic extension clause or
otherwise), for the period from but excluding the previous expiration date to
and including the extended expiration date. 
The fees provided for in the immediately preceding sentence shall be
nonrefundable and payable upon issuance (or in the case of an extension of the
expiration date, on the previous expiration date).  The Borrower shall pay directly to the Agent
from time to time on demand all commissions, charges, costs and expenses in the
amounts customarily charged by the Agent from time to time in like
circumstances with respect to the issuance of each Letter of Credit, drawings,
amendments and other transactions relating thereto.

 

47

 

(d)           Extension
Fee.  If the Borrower exercises its right
to extend the Termination Date in accordance with Section 2.13., the
Borrower agrees to pay to the Agent for the account of each Lender a fee equal
to 0.15% of the amount of such Lender’s Commitment (whether or not utilized) at
the time of such extension.  Such fee
shall be due and payable in full on the date the Agent receives the Extension
Request pursuant to such Section.

 

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

 

Section 3.7.  Computations.

 

Unless otherwise expressly set forth herein, any
accrued interest on any Loan or any other Obligations, and all Fees due
hereunder shall be computed on the basis of a year of 365 or 366 days, as
applicable, and the actual number of days elapsed, except in the case of LIBOR
Loans or LIBOR Margin Loans which 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
any other Loan Party 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.

 

Section 3.9.  Agreement Regarding Interest and Charges.

 

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
Sections 2.5.(a)(i) through (iv) and in Section 2.3.(c).  Notwithstanding the foregoing, the parties
hereto further agree and stipulate that all agency fees, syndication fees,
facility fees, unused fees, closing 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, in each case in connection with the transactions contemplated by
this Agreement and the other Loan Documents, 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.

 

48

 

Section 3.10.  Statements of Account.

 

The Agent will account to the Borrower monthly with
a statement of Loans, Letters of Credit, 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 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 hereunder.

 

Section 3.11.  Defaulting Lenders.

 

(a)           Generally.  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 two 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 the Requisite Lenders, shall be suspended during the
pendency of such failure or refusal (except that the Commitment of a Defaulting
Lender may not be increased or extended without its prior written
consent).  If a Lender is a Defaulting
Lender because it has failed 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
(provided that the Borrower shall be deemed to have made payment to such
Defaulting Lender of such amount) and shall be held uninvested by the Agent and
either applied against the purchase price of such Loans under the following subsection (b) or
paid to such Defaulting Lender upon such Defaulting Lender’s curing of its
default.

 

(b)           Purchase
or Cancellation of Defaulting Lender’s Commitment.  Any Lender who is not a Defaulting Lender
may, but shall not be obligated to, in its sole discretion, acquire all or a
portion of a Defaulting Lender’s Commitment. 
Any Lender desiring to exercise such right shall give written notice
thereof to the Agent and the Borrower no sooner than 2 Business Days and not
later than 5 Business Days after such Defaulting Lender became a Defaulting
Lender.  If more than one Lender
exercises such right, each such Lender shall have the right to acquire an
amount of such Defaulting Lender’s Commitment in proportion to the Commitments
of the other Lenders exercising such right. 
If after such 5th Business Day, the Lenders have not elected to purchase
all of the Commitment of such Defaulting Lender, then the Borrower may, by
giving

 

49

 

written notice thereof to the Agent, such
Defaulting Lender and the other Lenders, either (i) demand that such
Defaulting Lender assign its Commitment to an Eligible Assignee subject to and
in accordance with the provisions of Section 12.5.(b) for the
purchase price provided for below or (ii) terminate the Commitment of such
Defaulting Lender, whereupon 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 (except that such Defaulting Lender shall remain liable to the
Borrower for damages by reason of its failure or refusal to perform
hereunder).  No party hereto shall have
any obligation whatsoever to initiate any such replacement or to assist in
finding an Eligible Assignee.  Upon any
such purchase or assignment, the Defaulting Lender’s interest in the Loans and
its rights hereunder (but not its liability in respect thereof or under the
Loan Documents or this Agreement to the extent the same relate to the period
prior to the effective date of the purchase except to the extent assigned
pursuant to such purchase) shall terminate on the date of purchase, and the
Defaulting Lender shall promptly execute all documents reasonably requested to
surrender and transfer such interest to the purchaser or assignee thereof,
including an appropriate Assignment and Acceptance Agreement and,
notwithstanding Section 12.5.(b), shall pay to the Agent an assignment fee
in the amount of $7,000.  The purchase
price for the Commitment of a Defaulting Lender shall be equal to the amount of
the principal balance of the Loans outstanding and owed by the Borrower to the
Defaulting Lender.  Prior to payment of
such purchase price to a Defaulting Lender, the Agent shall apply against such
purchase price any amounts retained by the Agent pursuant to the last sentence
of the immediately preceding subsection (a).  The Defaulting Lender shall be entitled to
receive amounts owed to it by the Borrower under the Loan Documents which
accrued prior to the date of the default by the Defaulting Lender, to the
extent the same are received by the Agent from or on behalf of the
Borrower.  There shall be no recourse
against any Lender or the Agent for the payment of such sums except to the
extent of the receipt of payments from any other party or in respect of the
Loans.

 

Section 3.12.  Taxes.

 

(a)           Taxes
Generally.  All payments 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 imposed on or measured by any Lender’s assets, net income, receipts or
branch profits, (iii) any taxes (other than withholding taxes) with
respect to the Agent or a Lender that would not be imposed but for a connection
between the Agent or such 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), and (iv) any taxes, fees, duties, levies,
imposts, charges, deductions, withholdings or other charges to the extent
imposed as a result of the failure of the Agent or a Lender, as applicable, to
provide and keep current (to the extent legally able) any certificates, documents
or other evidence required to qualify for an exemption from, or reduced rate
of, any such taxes fees, duties, levies, imposts, charges, deductions,
withholdings or other charges or required by the immediately following subsection (c) to
be furnished by the Agent or such Lender, as applicable
(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:

 

50

 

(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 of funds received from the
Borrower or at its order 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
Foreign Lender becomes a party hereto, such Foreign 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),
properly completed, currently effective and duly executed by such Foreign
Lender establishing that payments to it hereunder and under the Notes are (i) not
subject to United States Federal backup withholding tax and (ii) not
subject to United States Federal withholding tax imposed under the Internal
Revenue Code.  Each such Foreign 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 or the Agent 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 the last sentence of subsection (a) above to any
Foreign Lender or the Agent, if it is organized under the laws of a
jurisdiction outside of the United States of America, if such Foreign Lender or
the Agent, as applicable, fails to comply with the requirements of this
subsection.  If any such Foreign Lender
fails to deliver the above forms or other documentation, then the Agent (or the
Borrower with the Agent’s consent) may withhold from any payments to be made to
such Foreign Lender under any of the Loan Documents such amounts as are
required by the Internal Revenue Code. 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

 

51

 

reasonable
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.

 

ARTICLE IV.
YIELD PROTECTION, ETC.

 

Section 4.1.  Additional Costs; Capital Adequacy.

 

(a)           Additional
Costs.  The Borrower shall promptly
pay to the Agent for the account of each affected Lender from time to time such
amounts as such Lender may reasonably determine to be necessary to compensate
such Lender for any costs actually incurred by such Lender that are
attributable to its making or maintaining of any LIBOR Loans or its obligation
to make any LIBOR 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 Loans or such obligation or the maintenance by such Lender of
capital in respect of its Loans or its Commitment (such increases in costs and
reductions in amounts receivable being herein called “Additional Costs”), to
the extent 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 Loans or its Commitment (other than taxes,
fees, duties, levies, imposts, charges, deductions, withholdings or other
charges which are excluded from the definition of Taxes pursuant to the first
sentence of Section 3.12.(a)); or (ii) imposes or modifies any
reserve, special deposit or similar requirements (other than Regulation D of
the Board of Governors of the Federal Reserve System or other reserve
requirement to the extent utilized in the determination of Adjusted LIBOR for
such Loan) relating to any extensions of credit or other assets of, or any
deposits with or other liabilities of, such Lender, 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).

 

(b)           Lender’s
Suspension of LIBOR Loans.  Without
limiting the effect of the provisions of the immediately preceding subsection (a),
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 LIBOR Loans is
determined as provided in this Agreement or a category of extensions of credit
or other assets of such Lender that includes LIBOR 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 any other Type of Loans into, LIBOR Loans hereunder
shall be suspended until such Regulatory Change ceases to be in effect (in
which case the provisions of Section 4.6. shall apply).

 

(c)           Additional
Costs in Respect of Letters of Credit. 
Without limiting the obligations of the Borrower under the preceding
subsections of this Section (but without duplication), if as a result of
any Regulatory Change or any risk-based capital guideline or other requirement

 

52

 

hereafter issued by any Governmental
Authority there shall be imposed, modified or deemed applicable any tax,
reserve, special deposit, capital adequacy or similar requirement against or
with respect to or measured by reference to Letters of Credit and the result
shall be to increase the cost to the Agent of issuing (or any Lender of
purchasing participations in) or maintaining its obligation hereunder to issue
(or purchase participations in) any Letter of Credit or reduce any amount
receivable by the Agent or any Lender hereunder in respect of any Letter of
Credit, then, upon demand by the Agent or such Lender, the Borrower shall pay
promptly, and in any event within 3 Business Days of demand, to the Agent for
its account or the account of such Lender, as applicable, from time to time as
specified by the Agent or a Lender, such additional amounts as shall be
sufficient to compensate the Agent or such Lender for such increased costs or
reductions in amount.

 

(d)           Notification
and Determination of Additional Costs. 
Each of the Agent and each Lender 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, the failure of the Agent or any
Lender to give such notice shall not release the Borrower from any of its
obligations hereunder (and in the case of a Lender, to the Agent).  The Agent or such Lender agrees to furnish to
the Borrower (and in the case of a Lender, to the Agent) a certificate setting
forth in reasonable detail the basis and amount of each request by the Agent or
such Lender for compensation under this Section.  Absent manifest error, determinations by the
Agent or any Lender of the effect of any Regulatory Change shall be conclusive,
provided that such determinations are made on a reasonable basis and in good
faith.

 

Section 4.2.  Suspension of LIBOR Loans.

 

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

 

(a)           the Agent reasonably determines (which determination shall
be conclusive) that by reason of circumstances affecting the relevant market,
adequate and reasonable means do not exist for ascertaining Adjusted LIBOR for
such Interest Period, or

 

(b)           the Agent reasonably determines (which determination shall
be conclusive) that Adjusted LIBOR will not adequately and fairly reflect the
cost to the Lenders of making or maintaining LIBOR Loans for such Interest
Period;

 

then
the Agent shall give the Borrower and each Lender prompt notice thereof and, so
long as such condition remains in effect, the Lenders shall be under no
obligation to, and shall not, make additional LIBOR Loans, Continue LIBOR Loans
or Convert Loans into LIBOR Loans and the Borrower shall, on the last day of
each current Interest Period for each outstanding LIBOR Loan, either repay such
Loan or Convert such Loan into a Base Rate Loan.

 

53

 

Section 4.3.  Illegality.

 

Notwithstanding any other provision of this
Agreement, if any Lender shall reasonably determine (which determination shall
be conclusive and binding) that it has become unlawful for such Lender to honor
its obligation to make or maintain LIBOR Loans hereunder, then such Lender
shall promptly notify the Borrower thereof (with a copy to the Agent) and such
Lender’s obligation to make or Continue, or to Convert Loans of any other Type
into, LIBOR Loans shall be suspended until such time as such Lender may again
make and maintain LIBOR Loans (in which case the provisions of Section 4.6.
shall be applicable).

 

Section 4.4.  Compensation.

 

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

 

(a)           any payment or prepayment (whether mandatory or optional
and for whatever reason, including without limitation, acceleration) of a LIBOR
Loan or Bid Rate Loan, or Conversion of a LIBOR Loan, owing to such Lender 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 V. to be satisfied) to borrow a LIBOR Loan or Bid
Rate Loan from such Lender on the requested 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.

 

Upon
the Borrower’s request, any Lender requesting compensation under this Section shall
provide the Borrower with a statement setting forth in reasonable detail the
basis for requesting such compensation and the method for determining the
amount thereof.  Absent manifest error,
determinations by any Lender in any such statement shall be conclusive,
provided that such determinations are made on a reasonable basis and in good
faith.  For the avoidance of doubt, the
provisions of this Section do not apply to Swingline Loans.

 

Section 4.5.  Affected Lenders.

 

If (a) a Lender requests compensation pursuant
to Section 3.12. or 4.1., 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 4.1.(b) or
4.3. 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 demand that such Lender (the “Affected Lender”), and upon such demand the
Affected Lender shall promptly, assign its Commitment to an Eligible Assignee
subject to and in accordance with the provisions of Section 12.5.(b) for a purchase price
equal to the aggregate principal balance of all 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 any

 

54

 

other amount as may be mutually agreed upon
by such Affected Lender and Eligible Assignee. 
Each of the Agent 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
any of the other Lenders.  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 3.12. or 4.1. with respect to periods up to the date of replacement.

 

Section 4.6.  Treatment of Affected Loans.

 

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 4.1.(b) or 4.3., 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 4.1.(b) or 4.3., 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 4.1. or 4.3. that gave rise to such
Conversion no longer exist:

 

(a)           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

 

(b)           all 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 4.1. or 4.3. 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 LIBOR Loans and by such Lender are held pro
rata (as to principal amounts, Types and Interest Periods) in accordance with
their respective Commitments.

 

Section 4.7.  Change of Lending Office.

 

Each Lender agrees that it will use reasonable
efforts to designate an alternate Lending Office with respect to any of its
Loans affected by the matters or circumstances described in Section 3.12.,
4.1. or 4.3. 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

 

55

 

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 4.8.  Assumptions Concerning Funding of LIBOR
Loans.

 

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

 

ARTICLE V.
CONDITIONS PRECEDENT

 

Section 5.1.  Initial Conditions Precedent.

 

The obligation of the Lenders to effect or permit
the occurrence of the first Credit Event hereunder, whether as the making of a
Loan or the issuance of a Letter of Credit, is subject to 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 each Lender (or Designated Lender, if applicable) and
complying with the applicable provisions of Section 2.11., and the
Swingline Note executed by the Borrower;

 

(iii)          The Guaranty executed by the Parent and each other
Guarantor existing as of the Effective Date;

 

(iv)          An
opinion of counsel to the Loan Parties, addressed to the Agent, the Lenders and
the Swingline Lender, addressing the matters set forth in Exhibit M;

 

(v)           The articles of incorporation, articles of organization,
certificate of limited partnership or other comparable organizational
instrument (if any) of the Borrower and each other Loan Party certified as of a
recent date by the Secretary of State of the state of formation of such Loan
Party;

 

(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 Loan Party and
certificates of qualification to transact business or other comparable
certificates issued by each Secretary of State (and any state department of
taxation, as applicable) of each state in which such Loan Party is required

 

56

 

to be so qualified and where the failure to be so
qualified could reasonably be expected to have a Material Adverse Effect;

 

(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 Loan Party authorized
to execute and deliver the Loan Documents to which such Loan Party is a party,
and in the case of the Borrower, the officers of the Borrower then authorized
to deliver Notices of Borrowing, Notices of Swingline Borrowings, Bid Rate
Quote Requests, Bid Rate Quote Acceptances, Notices of Continuation and Notices
of Conversion and to request the issuance of Letters of Credit;

 

(viii)        Copies
certified by the Secretary or Assistant Secretary (or other individual
performing similar functions) of each Loan Party of (i) the by-laws of
such Loan Party, if a corporation, the operating agreement of such Loan Party,
if a limited liability company, the partnership agreement of such Loan Party,
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 Loan Party to authorize the execution,
delivery and performance of the Loan Documents to which it is a party;

 

(ix)           The Fees then due and payable under Section 3.6., and
any other Fees payable to the Agent, the Titled Agents and the Lenders on or
prior to the Effective Date;

 

(x)            A Compliance Certificate calculated as of June 30,
2005 (giving pro forma effect to the financing contemplated by this Agreement
and the use of the proceeds of the Loans to be funded on the Effective Date);

 

(xi)           If requested by the Agent, a copy of the Existing Secured
Credit Agreement and the Existing Unsecured Credit Agreement, including all
amendments thereto;

 

(xii)          A letter from the agent under the Existing Secured Credit
Agreement and the Existing Unsecured Credit Agreement providing information
regarding the payment in full of amounts outstanding thereunder and providing
for the termination thereof;

 

(xiii)         With respect to each of the New York
Mortgages listed on Schedule 1.1.(B), each of the items required under Section 12.19.(d);
and

 

(xiv)        Such other documents, agreements and instruments as the Agent
on behalf of the Lenders may reasonably request; and

 

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

 

(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

 

57

 

concerning the Parent, the Borrower and the other
Loan Parties 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 could reasonably be expected to (1) result in a Material Adverse
Effect or (2) restrain or enjoin, impose materially burdensome conditions
on, or otherwise materially and adversely affect the ability of the Parent, the
Borrower or any other Loan Party to fulfill its obligations under the Loan
Documents to which it is a party;

 

(iii)          The Parent, 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 (1) any Applicable Law or (2) any
agreement, document or instrument to which the Parent, the Borrower or any
other 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 would not reasonably be likely
to (A) have a Material Adverse Effect, or (B) restrain or enjoin,
impose materially burdensome conditions on, or otherwise materially and
adversely affect the ability of the Parent, 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 5.2.  Conditions Precedent to All Loans and Letters
of Credit.

 

The obligations of the Lenders to make any Loans, of
the Agent to issue Letters of Credit, and of the Swingline Lender to make any
Swingline Loan are all subject to the further condition precedent that: (a) no
Default or Event of Default shall exist as of the date of the making of such
Loan or date of issuance of such Letter of Credit or would exist immediately
after giving effect thereto; and (b) the representations and warranties
made or deemed made by each Loan Party in the Loan Documents to which any of
them is a party, shall be true and correct in all material respects on and as
of the date of the making of such Loan or date of issuance of such Letter of
Credit 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 correct in all material respects on and as of such earlier date)
and except for changes in factual circumstances not prohibited under the Loan
Documents.  Each Credit Event shall
constitute a certification by the Parent and 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, if
such Credit Event is the making of a Loan or the issuance of a Letter of
Credit, the Parent and the Borrower shall be deemed to have represented to the
Agent and the Lenders at the

 

58

 

time such Loan is made or Letter of Credit
issued that all conditions to the occurrence of such Credit Event contained in
this Article V. have been satisfied.

 

ARTICLE VI.
REPRESENTATIONS AND WARRANTIES

 

Section 6.1.  Representations and Warranties.

 

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

 

(a)           Organization;
Power; Qualification.  Each of the
Parent, the Borrower, the other Loan Parties and each other Subsidiary 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.  As of the Agreement Date,
Part I of Schedule 6.1.(b) is a complete and correct list of all
Subsidiaries of the Parent setting forth for each such Subsidiary, (i) the
jurisdiction of organization of such Subsidiary, (ii) each Person holding
any Equity Interests in such Subsidiary, (iii) the nature of the Equity
Interests held by each such Person, (iv) the percentage of ownership of
such Subsidiary represented by such Equity Interests and (v) whether such
Subsidiary is a Material Subsidiary, Significant Subsidiary and/or an Excluded
Subsidiary. Except as disclosed in such Schedule, as of the Agreement Date (i) each
of the Parent and its Subsidiaries owns, free and clear of all Liens (other
than Permitted Liens), and has the unencumbered right to vote, all outstanding
Equity Interests in each Person shown to be held by it on such Schedule, (ii) all
of the issued and outstanding capital stock of each such Person organized as a
corporation is validly issued, fully paid and nonassessable and (iii) there
are no outstanding subscriptions, options, warrants, commitments, preemptive
rights or agreements of any kind (including, without limitation, any
stockholders’ or 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.  As of the
Agreement Date, Part II of Schedule 6.1.(b) correctly sets forth
all Unconsolidated Affiliates of the Parent, including the correct legal name
of such Person, the type of legal entity which each such Person is, and all
Equity Interests in such Person held directly or indirectly by the Parent.

 

(c)           Authorization
of Agreement, Etc.  The Borrower has
the right and power, and has taken all necessary action to authorize it, to borrow
and obtain other extensions of credit hereunder.  Each Loan Party has the right and power, 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

 

59

 

and thereby. 
The Loan Documents to which any 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 (other than the payment of principal)
contained herein or therein and as may be limited by equitable principles
generally.

 

(d)           Compliance
of Loan Documents with Laws, Etc. 
The execution, delivery and performance of this Agreement, the Notes 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 organizational documents of any Loan Party, or
any indenture, agreement or other instrument to which any 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.

 

(e)           Compliance
with Law; Governmental Approvals. 
Each Loan Party is in compliance with each Governmental Approval applicable
to it and in compliance with all other Applicable Laws (including without
limitation, Environmental Laws) relating to such Loan Party 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.  As of the
Agreement Date, Part I of Schedule 6.1.(f) is a complete and
correct listing of all of the real property owned or leased by the Parent, the
Borrower, each other Loan Party and each other Subsidiary.  Each such Person has good, marketable and
legal title to, or a valid leasehold interest in, its respective assets.  As of the Agreement Date, there are no Liens
against any assets of the Parent, the Borrower, any Subsidiary or any other
Loan Party except for Permitted Liens.

 

(g)           Existing
Indebtedness.  Schedule 6.1.(g) is,
as of the Agreement Date, a complete and correct listing of all Indebtedness of
the Parent, the Borrower and its other Subsidiaries, including without
limitation, Guarantees of the Parent, the Borrower and its other Subsidiaries
unrelated to the other Indebtedness listed on such Schedule, and indicating
whether such Indebtedness is Secured Indebtedness or Unsecured Indebtedness.

 

 (h)          Material Contracts.  Schedule 6.1.(h) is, as of the
Agreement Date, a true, correct and complete listing of all Material
Contracts.  No event or condition exists which with the
giving of notice, the lapse of time, or both, would permit any party to any
such Material Contract to terminate such Material Contract.

 

(i)            Litigation.  Except as set forth on Schedule 6.1.(i),
there are no actions, suits, investigations or proceedings pending (nor, to the
knowledge of the Parent, are there any actions,

 

60

 

suits or proceedings threatened) against or
in any other way relating adversely to or affecting the Parent, the Borrower,
any Subsidiary or any other Loan Party or any of its respective property in any
court or before any arbitrator of any kind or before or by any other
Governmental Authority which could reasonably be expected to have a Material
Adverse Effect.  There are no strikes,
slow downs, work stoppages or walkouts or other labor disputes in progress
or threatened relating to the Parent, the Borrower, any Subsidiary or any other
Loan Party which could reasonably be expected to have a Material Adverse
Effect.

 

(j)            Taxes.  All federal, state and other tax returns of
the Parent, the Borrower, any Subsidiary or any other Loan Party 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 the
Parent, the Borrower, any Subsidiary and each other Loan Party and its
respective properties, income, profits and assets which are due and payable
have been paid, except any such nonpayment which is at the time permitted under
Section 7.6.  As of the Agreement
Date, none of the United States income tax returns of the Parent, the Borrower,
its other Subsidiaries or any other Loan Party is under audit.  All charges, accruals and reserves on the
books of the Parent, the Borrower and each of its other Subsidiaries and each
other Loan Party in respect of any taxes or other governmental charges are in
accordance with GAAP.

 

(k)           Financial
Statements.  The Parent has furnished
to each Lender copies of (i) the audited consolidated balance sheet of the
Parent and its consolidated Subsidiaries for the fiscal year ending December 31,
2004, and the related audited consolidated statements of operations, cash flows
and shareholders’ equity for the fiscal year ending on such dates, with the
opinion thereon of Ernst & Young LLP, and (ii) the unaudited
consolidated balance sheet of the Parent and its consolidated Subsidiaries for
the fiscal quarter ending June 30, 2005, and the related unaudited
consolidated statements of operations, cash flows and shareholders’ equity of
the Parent and its consolidated Subsidiaries for the period of two fiscal
quarters ending on such date.  Such
financial statements (including in each case related schedules and notes)
present fairly, in all material respects and in accordance with GAAP
consistently applied throughout the periods involved, the consolidated
financial position of the Parent 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
Parent 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 that would be required to be set forth in its financial
statements or in the notes thereto, except as referred to or reflected or
provided for in said financial statements.

 

(l)            No
Material Adverse Change.  Since December 31,
2004, there has been no material adverse change in the business, assets,
liabilities, financial condition, results of operations, business or prospects
of the Parent and its Subsidiaries taken as a whole.  Each of the Loan Parties is Solvent.

 

(m)          ERISA.  Each member of the ERISA Group is in
compliance with its obligations under the minimum funding standards of ERISA
and the Internal Revenue Code with respect to each Plan and is in compliance
with the presently applicable provisions of ERISA and the

 

61

 

Internal Revenue Code with respect to each
Plan, except in each case for noncompliances which could not reasonably be
expected to have a Material Adverse Effect. 
As of the Agreement Date, 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 liability under Title IV of ERISA other than a liability to the PBGC for
premiums under Section 4007 of ERISA.

 

(n)           Not
Plan Assets; No Prohibited Transaction. 
None of the assets of the Parent, the Borrower, any other Subsidiary or
any other Loan Party constitute “plan assets” within the meaning of ERISA, the
Internal Revenue Code and the respective regulations promulgated
thereunder.  The execution, delivery and
performance of this Agreement and the other Loan Documents, and the borrowing
and repayment of amounts hereunder, do not and will not constitute “prohibited
transactions” under ERISA or the Internal Revenue Code.

 

(o)           Absence
of Defaults.  None of the Parent, the
Borrower, any other Subsidiary or any other Loan Party 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, which, in any such case:  (i) constitutes a Default or an Event of
Default; or (ii) constitutes, or which with the passage of time, the
giving of notice, or both, would constitute, a default or event of default by
the Parent, the Borrower, any Subsidiary or any other Loan Party under any
agreement (other than this Agreement) or judgment, decree or order to which the
Parent, the Borrower or any other Subsidiary or other Loan Party is a party or
by which the Parent, the Borrower or any other Subsidiary or other Loan Party
or any of their 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.

 

(p)           Environmental
Laws.  Each of the Parent, the
Borrower, its other Subsidiaries and the other Loan Parties has obtained all
Governmental Approvals which are required under Environmental Laws and is in
compliance with all terms and conditions of such Governmental Approvals which
the failure to obtain or to comply with could reasonably be 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, (i) neither the Parent nor the Borrower is aware
of, and has received notice of, any past, present, or future events,
conditions, circumstances, activities, practices, incidents, actions, or plans
which, with respect to the Parent, the Borrower, its other Subsidiaries and
each other Loan Party, may interfere with or prevent compliance or continued
compliance with Environmental Laws, or may give rise to any common-law or legal
liability, or otherwise form the basis of any claim, action, demand, suit,
proceeding, hearing, study, or investigation, 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 (ii) 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 Parent’s and the Borrower’s

 

62

 

knowledge after due inquiry, threatened,
against the Parent, the Borrower, its other Subsidiaries and each other Loan
Party relating in any way to Environmental Laws.

 

(q)           Investment
Company; Public Utility Holding Company. 
None of the Parent, the Borrower, any other Subsidiary or any other Loan
Party 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, (ii) a
“holding company” or a “subsidiary company” of a “holding company”, or an “affiliate”
of a “holding company” or of a “subsidiary company” of a “holding company”,
within the meaning of the Public Utility Holding Company Act of 1935, as
amended, or (iii) subject to any other Applicable Law which purports to
regulate or restrict its ability to borrow money or to consummate the
transactions contemplated by this Agreement or to perform its obligations under
any Loan Document to which it is a party.

 

(r)            Margin
Stock.  None of the Parent, the
Borrower, any other Subsidiary or any other Loan Party 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.

 

(s)           Affiliate
Transactions.  Except as permitted by
Section 9.11., none of the Parent, the Borrower, any other Subsidiary or
any other Loan Party is a party to any transaction with an Affiliate.

 

(t)            Intellectual
Property.  Each of the Parent, the
Borrower, each other Loan Party and each other Subsidiary owns or has the right
to use, under valid license agreements or otherwise, all material patents,
licenses, franchises, trademarks, trademark rights, service marks, service mark
rights, trade names, trade name rights, trade secrets and copyrights
(collectively, “Intellectual Property”) necessary to the conduct of its
businesses as now conducted and as contemplated by the Loan Documents, without
known conflict with any patent, license, franchise, trademark, trademark right,
service mark, service mark right, trade secret, trade name, copyright or other
proprietary right of any other Person. 
The Parent, the Borrower, each other Loan Party and each other
Subsidiary have taken all such steps as they deem reasonably necessary to
protect their respective rights under and with respect to such Intellectual
Property.  No material claim has been
asserted by any Person with respect to the use of any such Intellectual
Property by the Parent, the Borrower, any other Loan Party or any other
Subsidiary, or challenging or questioning the validity or effectiveness of any
such Intellectual Property.  The use of
such Intellectual Property by the Parent, the Borrower, its other Subsidiaries
and the other Loan Parties, does not infringe on the rights of any Person,
subject to such claims and infringements as do not, in the aggregate, give rise
to any liabilities on the part of the Parent, the Borrower, any other Loan
Party or any other Subsidiary that could reasonably be expected to have a
Material Adverse Effect.

 

(u)           Business.  As of the Agreement Date, the Parent, the
Borrower and the other Subsidiaries are engaged predominately in the business
of owning, managing, leasing, acquiring, repositioning and making investments
in office properties in the borough of Manhattan, New York, New York, together
with other business activities incidental thereto.

 

63

 

(v)           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 the Parent, the Borrower or any of its other
Subsidiaries ancillary to the transactions contemplated hereby.

 

(w)          Accuracy
and Completeness of Information.  No
written information, report or other papers or data (excluding financial
projections and other forward looking statements) furnished to the Agent or any
Lender by, on behalf of, or at the direction of, the Parent, the Borrower, any
other Subsidiary or any other Loan Party in connection with, pursuant to or
relating in any way to this Agreement, contained any untrue statement of a fact
material to the creditworthiness of the Parent, the Borrower, any other
Subsidiary or any other Loan Party or omitted to state a material fact
necessary in order to make such statements contained therein, in light of the
circumstances under which they were made, not misleading in any way material to
the creditworthiness of the Parent, the Borrower, any other Subsidiary or any
other Loan Party.  All financial
statements (including in each case all related schedules and notes) furnished
to the Agent or any Lender by, on behalf of, or at the direction of the Parent,
the Borrower, any other Subsidiary or any other Loan Party in connection with,
pursuant to or relating in any way to this Agreement, present fairly, in all
material respects and 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 (subject, as to
interim statements, to changes resulting from normal year-end audit
adjustments).  All financial projections
and other forward looking statements prepared by or on behalf of the Parent,
the Borrower, any other Subsidiary or any other Loan Party that have been or
may hereafter be made available to the Agent or any Lender were or will be
prepared in good faith based on reasonable assumptions.  As of the Effective Date, no fact is known to
the Parent or the Borrower which has had, or may in the future have (so far as
the Parent or the Borrower can reasonably foresee), a Material Adverse Effect
which has not been set forth in the financial statements referred to in Section 6.1.(k)
or in such information, reports or other papers or data or otherwise disclosed
in writing to the Agent and the Lenders.

 

(x)            REIT
Status.  The Parent qualifies as a
REIT and is in compliance with all requirements and conditions imposed under
the Internal Revenue Code to allow the Parent to maintain its status as a REIT.

 

(y)           Eligible
and Identified Properties; Structured Finance Investments.  As of the Agreement Date, Schedule 6.1.(y)
is a correct and complete list of all Eligible Properties, all Identified Properties
and all Structured Finance Investments, and the name of each Subsidiary that
owns or leases any such Property or that owns any such Structured Finance
Investment.

 

(z)            Foreign
Assets Control.  None of the Parent,
the Borrower, any other Subsidiary or any Affiliate of the Borrower: (i) is
a Sanctioned Person, (ii) has any of its assets in Sanctioned Entities, or
(iii) to the best of its knowledge, derives any of its operating income
from investments in, or transactions with, Sanctioned Persons or Sanctioned
Entities.

 

64

 

Section 6.2.  Survival of Representations and Warranties,
Etc.

 

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, the date on which any extension of the
Termination Date is effectuated pursuant to Section 2.13. and the date of
the occurrence of any 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 correct
in all material respects on and as of such earlier date) and except for changes
in factual circumstances not prohibited under the Loan Documents.  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 and the issuance of the Letters of
Credit.

 

ARTICLE VII.
AFFIRMATIVE COVENANTS

 

For so long as this Agreement is in effect, unless
the Requisite Lenders (or, if required pursuant to Section 12.6., all of
the Lenders) shall otherwise consent in the manner provided for in Section 12.6.,
the Parent and the Borrower shall comply with the following covenants:

 

Section 7.1.  Preservation of Existence and Similar
Matters.

 

Except as otherwise permitted under Section 9.7.,
the Parent and the Borrower shall, and shall cause each Subsidiary and each
other Loan Party 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 7.2.  Compliance with Applicable Law and Material
Contracts.

 

The Parent and the Borrower shall, and shall cause
each Subsidiary and each other Loan Party to, comply with (a) all
Applicable Laws, including the obtaining of all Governmental Approvals, the
failure with which to comply could reasonably be expected to have a Material
Adverse Effect, and (b) all terms and conditions of all Material Contracts to which it is a
party noncompliance with which would permit any other party to such Material
Contract to terminate such Material Contract.

 

Section 7.3.  Maintenance of Property.

 

In addition to the requirements of any of the other
Loan Documents, the Parent and the Borrower shall, and shall cause each
Subsidiary and other Loan Party to, (a) protect and preserve all of its
respective material properties, including, but not limited to, all Intellectual
Property, and maintain in good repair, working order and condition all tangible
properties, ordinary wear and tear excepted, and (b) 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.

 

65

 

Section 7.4.  Conduct of Business.

 

The Parent and the Borrower shall, and shall cause
its Subsidiaries and the other Loan Parties to, carry on, their respective
businesses as described in Section 6.1.(u).

 

Section 7.5.  Insurance.

 

In addition to the requirements of any of the other
Loan Documents, the Parent and the Borrower shall, and shall cause each
Subsidiary and other Loan Party to, maintain insurance (on a replacement cost
basis) with financially sound and reputable insurance companies against such
risks (including in any event, insurance with respect to acts of terrorism in
amounts that are commercially reasonable and which are acceptable to the Agent,
such acceptance not to be unreasonably withheld) and in such amounts as is
customarily maintained by Persons engaged in similar businesses or as may be
required by Applicable Law.  The Parent
and the Borrower shall, and shall cause each Subsidiary and other Loan Party
to, from time to time, deliver to the Agent upon its request a detailed list,
together with certificates of insurance evidencing all insurance then in effect
(or if requested by the Agent, copies of the policies for such insurance),
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 7.6.  Payment of Taxes and Claims.

 

The Parent and the Borrower shall, and shall cause
each Subsidiary and other Loan Party 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 the Parent, the Borrower, such Subsidiary
or such other Loan Party, as applicable, in accordance with GAAP.

 

Section 7.7.  Visits and Inspections.

 

The Parent and the Borrower shall, and shall cause
each Subsidiary and other Loan Party to, permit representatives or agents of
any Lender or the Agent, from time to time after reasonable prior notice if no
Event of Default shall be in existence, as often as may be reasonably requested,
but only during normal business hours and at the expense of such Lender or the
Agent (unless a Default or Event of Default shall exist, in which case the
exercise by the Agent or such Lender of its rights under this Section shall
be at the expense of the Borrower), as the case may be, to: (a) visit and
inspect all properties of the Parent, the Borrower or such Subsidiary or other
Loan Party to the extent any such right to visit or inspect is within the
control of such Person; (b) inspect and make extracts from their
respective books and records, including but not limited to management letters
prepared by independent accountants; and (c) discuss with its officers and
employees, and its independent accountants, its business, properties, condition
(financial or

 

66

 

otherwise), results of operations and
performance.  If requested by the Agent,
the Parent and the Borrower shall execute an authorization letter addressed to
its accountants authorizing the Agent or any Lender to discuss the financial
affairs of the Parent, the Borrower and any Subsidiary or any other Loan Party
with its accountants.

 

Section 7.8.  Use of Proceeds; Letters of Credit.

 

The Borrower shall use the proceeds of the Loans and
the Letters of Credit for general corporate purposes only.  No part of the proceeds of any Loan or Letter
of Credit will be used (a) for the purpose of buying or carrying “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 or (b) fund any operations
in, finance any investments or activities in, or make any payments to, a
Sanctioned Person or Sanctioned Entity.

 

Section 7.9.  Environmental Matters.

 

The Parent and the Borrower shall, and shall cause
all of its Subsidiaries and the other Loan Parties to, comply with all
Environmental Laws the failure with which to comply could reasonably be
expected to have a Material Adverse Effect. 
If the Parent, the Borrower, any Subsidiary or any other Loan Party
shall (a) receive notice that any violation of any Environmental Law may
have been committed or is about to be committed by such Person, (b) receive
notice that any administrative or judicial complaint or order has been filed or
is about to be filed against the Parent, the Borrower, any Subsidiary or any
other Loan Party alleging violations of any Environmental Law or requiring the
Parent, the Borrower, any Subsidiary or any other Loan Party to take any action
in connection with the release of Hazardous Materials or (c) receive any
notice from a Governmental Authority or private party alleging that the Parent,
the Borrower, any Subsidiary or any other Loan Party 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 the matters referred to in 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 promptly, and in any event within 10 Business Days, after the
receipt thereof by the Parent, the Borrower, any Subsidiary or any other Loan
Party.  The Parent and the Borrower shall,
and shall cause its Subsidiaries and the other Loan Parties to, take promptly
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 7.10.  Books and Records.

 

The Parent and the Borrower shall, and shall cause
each of its Subsidiaries and the other Loan Parties to, maintain books and
records pertaining to its respective business operations in such detail, form
and scope as is consistent with good business practice and in accordance with
GAAP.

 

67

 

Section 7.11.  Further Assurances.

 

The Parent and the Borrower shall, at their cost and
expense and upon request of the Agent, execute and deliver or cause to be
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 7.12. 
New Guarantors.

 

(a)           Requirement
to Become Guarantor.  The Borrower
may, at its option, cause any Subsidiary to become a Guarantor by executing and
delivering to the Agent each of the following items, each in form and substance
satisfactory to the Agent: (i) an Accession Agreement executed by such
Subsidiary and (ii) the items that would have been delivered under
Sections 5.1.(a)(iv) through (viii) and (xiv) if such Subsidiary
had been a Guarantor on the Effective Date. 
The Agent shall send to any Lender, upon such Lender’s written request
and at the expense of the Borrower, copies of each of the foregoing items once
the Agent has received all such items with respect to a Subsidiary.

 

(b)           Release
of a Guarantor.  The Borrower may
request in writing that the Agent release, and upon receipt of such request the
Agent shall release, a Guarantor (except for the Parent) from the Guaranty so
long as: (i) no Default or Event of Default shall then be in existence or
would occur as a result of such release, including without limitation, a
Default or Event of Default resulting from a violation of any of the covenants
contained in Section 9.1.; (ii) the representations and warranties
made or deemed made by the Parent, 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 on and as of the date of such release 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
correct in all material respects on and as of such earlier date) and except for
changes in factual circumstances not prohibited under the Loan Documents; and (iii) the
Agent shall have received such written request at least 10 Business Days prior
to the requested date of release. 
Delivery by the Borrower to the Agent of any such request shall
constitute a representation by the Borrower that the matters set forth in the
preceding sentence (both as of the date of the giving of such request and as of
the date of the effectiveness of such request) are true and correct with
respect to such request.

 

(c)           Inclusion
of Eligible Properties in Financial Calculations.  An Eligible Property owned or leased by a
Subsidiary or a Structured Finance Investment owned by a Subsidiary shall be
included in determinations of Unencumbered Adjusted NOI and Unencumbered Asset
Value only if the Borrower has delivered each of the items required under the
immediately preceding subsection (a) with respect to such
Subsidiary.  An Eligible Property or a
Structured Finance Investment shall not be included in determinations of
Unencumbered Adjusted NOI and Unencumbered Asset Value if any Subsidiary owning
or leasing such Eligible Property or owning such Structured Finance Investment
is not a Guarantor.

 

68

 

Section 7.13.  REIT Status.

 

The Parent shall at all times maintain its status as
a REIT.

 

Section 7.14.  Exchange Listing.

 

The Parent shall maintain at least one class of common
shares of the Parent having trading privileges on the New York Stock Exchange
or the American Stock Exchange or which is the subject of price quotations in
the over-the-counter market as reported by the National Association of
Securities Dealers Automated Quotation System.

 

ARTICLE VIII. INFORMATION

 

For so long as this Agreement is in effect, unless
the Requisite Lenders (or, if required pursuant to Section 12.6., all of
the Lenders) shall otherwise consent in the manner set forth in Section 12.6.,
the Borrower shall furnish to the Agent and each Lender at its Lending Office:

 

Section 8.1.  Quarterly Financial Statements.

 

As soon as available and in any event within 5 days
after the same is required to be filed with the Securities and Exchange
Commission (but in no event later than 45 days after the end of each of the
first, second and third fiscal quarters of the Parent), the unaudited
consolidated balance sheet of the Parent and its Subsidiaries as at the end of
such period and the related unaudited consolidated statements of income,
shareholders’ equity and cash flows of the Parent 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 executive officer or chief financial
officer of the Parent, in his or her opinion, to present fairly, in accordance
with GAAP and in all material respects, the consolidated financial position of
the Parent and its Subsidiaries as at the date thereof and the results of
operations for such period (subject to normal year-end audit adjustments).

 

Section 8.2.  Year-End Statements.

 

As soon as available and in any event within 5 days
after the same is required to be filed with the Securities and Exchange
Commission (but in no event later than 90 days after the end of each fiscal
year of the Parent), the audited consolidated balance sheet of the Parent and
its Subsidiaries as at the end of such fiscal year and the related audited
consolidated statements of income, shareholders’ equity and cash flows of the
Parent 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 (a) certified by the chief executive officer or chief
financial officer of the Parent, in his or her opinion, to present fairly, in
accordance with GAAP and in all material respects, the consolidated financial
position of the Parent, the Borrower and its other Subsidiaries as at the date
thereof and the results of operations for such period and (b) accompanied
by the report thereon of independent certified public accountants of recognized
national standing acceptable to the Agent, whose certificate shall be
unqualified.

 

69

 

Section 8.3.  Compliance Certificate; Other Reports.

 

At the time financial statements are furnished
pursuant to Sections 8.1. and 8.2., and if the Agent or the Requisite
Lenders reasonably believe that a Default or Event of Default may exist or may
be likely to occur, within 5 Business Days of the Agent’s request with respect
to any other fiscal period, a certificate substantially in the form of Exhibit N
(a “Compliance Certificate”) executed by the chief financial officer of the
Parent: (a) setting forth in reasonable detail as at the end of such
quarterly accounting period, fiscal year, or other fiscal period, as the case
may be, the calculations required to establish whether or not the Parent was in
compliance with the covenants contained in Sections 9.1., 9.2. and 9.4.
and (b) stating that, to the best of his or her knowledge, information and
belief after due inquiry, 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, whether it is continuing and the steps being taken by the Parent
and the Borrower with respect to such event, condition or failure.  At the time financial statements are
furnished pursuant to Sections 8.1. and 8.2., the Borrower shall also
deliver (A) a report, in form and detail reasonably satisfactory to the
Agent, setting forth a statement of Funds From Operations for the period of
four consecutive fiscal periods then ending; and (B) a report, in form and
detail reasonably satisfactory to the Agent, setting forth a list of all
Properties acquired by the Parent, the Borrower and their Subsidiaries since
the date of the delivery of the previous such report, such list to identify
such Property’s name, location, year built or acquired, anchor tenants, if any,
amount of related mortgage Indebtedness,
if any, and the maturity of such mortgage Indebtedness, and the Occupancy Rate and Net Operating Income
for such Property.

 

Section 8.4.  Other Information.

 

(a)           Management
Reports.  Promptly upon receipt
thereof, copies of all management reports, if any, submitted to the Parent or
its Board of Directors by its independent public accountants;

 

(b)           Securities
Filings.  Prompt notice of the filing
of all registration statements (excluding the exhibits thereto (unless
requested by the Agent) 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 the Parent, the Borrower, any Subsidiary or any
other Loan Party shall file with the Securities and Exchange Commission (or any
Governmental Authority substituted therefor) or any national securities
exchange (such registration statements, reports and other periodic reports
collectively referred to a “Security Filing”), and copies of any of the
foregoing that is not publicly available to the Agent and the Lenders;

 

(c)           Shareholder
Information.  Promptly upon the
mailing thereof to the shareholders of the Parent 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 Parent, the
Borrower, any Subsidiary or any other Loan Party (but only to the extent that
such financial statements, reports and proxy statements are not publicly
available to the Agent and the Lenders);

 

(d)           Partnership
Information.  Promptly upon the
mailing thereof to the partners of the Borrower generally, copies of all
financial statements, reports and proxy statements so mailed

 

70

 

(but only to the extent that such financial
statements, reports and proxy statements are not publicly available to the
Agent and the Lenders);

 

(e)           ERISA.  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, and of which has resulted or
could reasonably be expected to result in the imposition of a Lien or the
posting of a bond or other security, a certificate of the chief executive
officer or chief financial officer of the Parent setting forth details as to
such occurrence and the action, if any, which the Parent or applicable member
of the ERISA Group is required or proposes to take;

 

(f)            Litigation.  To the extent the Parent, the Borrower or any
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, the
Parent, the Borrower or any Subsidiary or any of their respective properties,
assets or businesses which could reasonably be expected to have a Material
Adverse Effect, and prompt notice of the receipt of notice that any United
States income tax returns of the Parent, the Borrower or any of their
respective Subsidiaries are being audited;

 

(g)           Modification
of Organizational Documents.  A copy
of any amendment to the articles of incorporation, bylaws, partnership
agreement, operating agreement or other similar organizational documents of the
Parent, the Borrower or any other Loan Party within 15 Business Days after
the effectiveness thereof (but only to the extent that such amendment is not
publicly available to the Agent and the Lenders);

 

(h)           Change
of Management or Financial Condition. 
Prompt notice of any change in the senior management of the Parent, 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 the Parent, the Borrower, any Subsidiary or any other
Loan Party which has had or could reasonably be expected to have a Material
Adverse Effect;

 

71

 

(i)            Default.
Notice of the occurrence of any of the following promptly upon a Responsible
Officer of the Parent or the Borrower obtaining knowledge thereof: (i) any
Default or Event of Default or (ii) 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 the Parent, the Borrower, any Subsidiary or
any other Loan Party 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;

 

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

 

(k)           Notice
of Violations of Law.  Prompt notice
if the Parent, the Borrower, any Subsidiary or any other Loan Party shall
receive any notification from any Governmental Authority alleging a violation
of any Applicable Law or any inquiry which, in either case, could reasonably be
expected to have a Material Adverse Effect;

 

(l)            Material
Subsidiary.  Prompt notice of any
Person becoming a Material Subsidiary;

 

(m)          Material
Asset Sales.  Prompt notice of the
sale, transfer or other disposition of any material assets of the Parent, the
Borrower, any Subsidiary or any other Loan Party to any Person other than the
Parent, the Borrower, any Subsidiary or any other Loan Party;

 

(n)           Patriot
Act Information.  From time to time
and promptly upon each request, information identifying the Borrower as a
Lender may request in order to comply with the USA Patriot Act (Title III of
Pub. L. 107-56 (signed into law October 26, 2001));

 

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

 

(p)           Other
Information.  From time to time and
promptly upon each request, such data, certificates, reports, statements,
opinions of counsel, documents or further information regarding 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.

 

Section 8.5.  Electronic Delivery.

 

Documents required to be delivered pursuant to Section 8.1.,
8.2. or 8.4.(b) (to the extent any such documents are included in
materials otherwise filed with the Securities and Exchange Commission) may be
delivered electronically and if so delivered, shall be deemed to have been
delivered on the date (a) on which the Parent posts such documents, or
provides a link thereto, on the Parent’s website; or (b) on which such
documents are posted on the Parent’s behalf on an internet or intranet website,
if any, to which each Lender and the Agent have access (whether a commercial,
third-party website or whether sponsored by the Agent); provided that: (i) the
Parent shall deliver paper copies of such documents to the Agent or any Lender
that requests the Parent to deliver such paper copies until a written request
to cease delivering paper copies is given by

 

72

 

the Agent or such Lender and (ii) the
Parent shall notify the Agent and each Lender of the posting of any such
documents and provide to the Agent by electronic mail electronic versions of
such documents. Any document required to be delivered pursuant to any of the
other provisions of this Article VIII. which is suitable for delivery in
electronic format, may be delivered to the Agent in such format pursuant to
procedures approved by the Agent and if so delivered, shall be deemed to have
been delivered on the date such document is delivered to the Agent pursuant to
such procedures; provided that the Parent shall deliver paper copies of
any such document to the Agent upon the Agent’s request.  Promptly upon the Agent’s receipt of any such
document, the Agent shall forward a copy thereof, in the form received, to each
Lender pursuant to procedures approved by the Agent.  Notwithstanding anything contained herein, in
every instance the Parent shall be required to provide paper copies of the
certificate required by Section 8.3. to the Agent.  The Agent shall have no obligation to any of
the other parties hereto to request the delivery of, or to maintain copies of,
the documents referred to above.

 

ARTICLE IX.
NEGATIVE COVENANTS

 

For so long as this Agreement is in effect, unless
the Requisite Lenders (or, if required pursuant to Section 12.6., all of
the Lenders) shall otherwise consent in the manner set forth in Section 12.6.,
each of the Parent and the Borrower, as applicable, shall comply with the
following covenants:

 

Section 9.1.  Financial Covenants.

 

The Parent shall not permit:

 

(a)           Maximum
Leverage Ratio.  The ratio of (i) Total
Indebtedness to (ii) Total Asset Value, to exceed 0.65 to 1.00 at any
time.

 

(b)           Maximum
Senior Leverage Ratio.  The ratio of (i) Senior
Indebtedness to (ii) Total Asset Value, to exceed 0.60 to 1.00 at any
time.

 

(c)           Minimum
Fixed Charge Coverage Ratio.  The
ratio of (i) Adjusted EBITDA for the period of four consecutive fiscal
quarters of the Parent most recently ending to (ii) Fixed Charges for such
period, to be less than 1.50 to 1.00 at any time.

 

(d)           Maximum
Secured Indebtedness Ratio.  The
ratio of (i) Secured Indebtedness of the Parent and its Subsidiaries
determined on a consolidated basis to (ii) Total Asset Value, to exceed
0.40 to 1.00 at any time.

 

(e)           Minimum
Unencumbered Leverage Ratio.  The
ratio of (i) Unencumbered Asset Value to (ii) Unsecured Indebtedness
of the Parent and its Subsidiaries determined on a consolidated basis, to be
less than 1.54 to 1.00 at any time.

 

(f)            Minimum
Senior Unencumbered Leverage Ratio. 
The ratio of (i) Unencumbered Asset Value to (ii) Senior
Unsecured Indebtedness of the Parent and its Subsidiaries determined on a
consolidated basis, to be less than 1.67 to 1.00 at any time.

 

73

 

(g)           Minimum
Unencumbered Interest Coverage Ratio. 
The ratio of (i) Unencumbered Adjusted NOI for the period of four
consecutive fiscal quarters of the Parent most recently ending to (ii) Unsecured
Interest Expense for such period, to be less than 2.00 to 1.00 at any time.

 

(h)           Minimum
Unencumbered Asset Value.  The
Unencumbered Asset Value attributable to Eligible Properties to be less than
$600,000,000 at any time.

 

(i)            Minimum
Number of Eligible Properties.  The
number of Eligible Properties to be less than 5 at any time.

 

(j)            Maximum
Unconsolidated Leverage Ratio.  The
ratio of (i) Indebtedness of Unconsolidated Affiliates to (ii) Unconsolidated
Asset Value, to exceed 0.72 to 1.00 at any time.

 

(k)           Minimum
Net Worth.  Tangible Net Worth at any
time to be less than (i) $1,000,000,000 plus (ii) 75% of the
Net Proceeds of all Equity Issuances effected by the Parent, the Borrower or
any Subsidiary after June 30, 2005 (other than Equity Issuances to the
Parent, the Borrower or any Subsidiary).

 

(l)            Minimum Aggregate Occupancy Rate.  The aggregate Occupancy Rate for all Eligible
Properties and Identified Properties to be less than 85% at any time.

 

Section 9.2.  Restricted Payments.

 

The Parent shall not, and shall not permit any of
its Subsidiaries to, declare or make any Restricted Payment; provided, however,
that the Parent and its Subsidiaries may declare and make the following
Restricted Payments so long as no Default or Event of Default would result
therefrom:

 

(a)           the Borrower may declare and pay cash
dividends to the Parent and other holders of partnership interests in the
Borrower with respect to any fiscal year ending during the term of this
Agreement to the extent necessary for the Parent to distribute, and the Parent may
so distribute, cash dividends to its shareholders in an aggregate amount not to
exceed the greater of (i) the amount required to be distributed for the
Parent to remain in compliance with Section 7.13. or (ii) 95.0% of
Funds From Operations;

 

(b)           the
Borrower may declare and pay cash distributions of capital gains to the Parent
and other holders of partnership interests in the Borrower to the extent
necessary for the Parent to make, and the Parent may make, cash distributions
to its shareholders of capital gains resulting from gains from certain asset
sales to the extent necessary to avoid payment of taxes on such asset sales
imposed under Sections 857(b)(3) and 4981 of the Internal Revenue
Code;

 

(c)           the Parent, the Borrower or any
Subsidiary may acquire the Equity Interests of a Subsidiary that is not a
Wholly Owned Subsidiary;

 

(d)           a
Subsidiary that is not a Wholly Owned Subsidiary may make cash distributions to
holders of Equity Interests issued by such Subsidiary; and

 

74

 

(e)           Subsidiaries
may pay Restricted Payments to the Parent, the Borrower or any other
Subsidiary.

 

Notwithstanding
the foregoing, but subject to the following sentence, if a Default or Event of
Default exists, the Borrower may only declare and make cash distributions to
the Parent and other holders of partnership interests in the Borrower with
respect to any fiscal year to the extent necessary for the Parent to
distribute, and the Parent may so distribute, an aggregate amount not to exceed
the minimum amount necessary for the Parent to remain in compliance with Section 7.13. 
If a Default or Event of Default specified in Section 10.1.(a), Section 10.1.(b),
Section 10.1.(f) or Section 10.1.(g) shall exist, or if as
a result of the occurrence of any other Event of Default any of the Obligations
have been accelerated pursuant to Section 10.2.(a), the Parent shall not,
and shall not permit any Subsidiary to, make any Restricted Payments to any
Person other than to the Parent or any Subsidiary.

 

Section 9.3.  Indebtedness.

 

The Parent and the Borrower shall not, and shall not
permit any Subsidiary or any other Loan Party to, incur, assume, or otherwise
become obligated in respect of any Indebtedness after the Agreement Date if
immediately prior to the assumption, incurring or becoming obligated in respect
thereof, or immediately thereafter and after giving effect thereto, a Default
or Event of Default is or would be in existence, including without limitation,
a Default or Event of Default resulting from a violation of any of the
covenants contained in Section 9.1.

 

Section 9.4. Certain Permitted Investments.

 

The Parent and the Borrower shall not, and shall not
permit any Subsidiary to, make any Investment in or otherwise own the following
items which would cause the aggregate value of such holdings of the Parent, the
Borrower and such other Subsidiaries to exceed the applicable limits set forth
below:

 

(a)           Investments
in Unconsolidated Affiliates and other Persons that are not Subsidiaries, such
that the aggregate value of such Investments determined in accordance with GAAP
exceeds 30.0% of Total Asset Value at any time;

 

(b)           Structured
Finance Investments, such that the aggregate book value of all such Structured
Finance Investments exceeds 15.0% of Total Asset Value at any time;

 

(c)           real
property under construction such that the aggregate Construction Budget for all
such real property exceeds 10.0% of Total Asset Value at any time.

 

(d)           Properties
that are developed but that are not office properties, such that the value
(based on the lower of cost or market price determined in accordance with GAAP)
of all such Properties exceeds 10.0% of Total Asset Value at any time; and

 

(e)           other
Investments not otherwise permitted under Section 9.5., such that the
value of all such Investments exceeds 10.0% of Total Asset Value.

 

75

 

In
addition to the foregoing limitations, the aggregate value of all of the items
subject to the limitations in the preceding clauses (a) through (e) shall
not exceed 40.0% of Total Asset Value at any time.

 

Section 9.5.  Investments Generally.

 

The Parent and the Borrower shall not, and shall not
permit any Subsidiary or other Loan Party to, directly or indirectly, acquire,
make or purchase any Investment, or permit any Investment of such Person to be
outstanding on and after the Agreement Date, other than the following:

 

(a)           Investments
in Subsidiaries in existence on the Agreement Date and disclosed on Part I
of Schedule 6.1.(b);

 

(b)           Investments
to acquire Equity Interests of a Subsidiary or any other Person who after
giving effect to such acquisition would be a Subsidiary, so long as in each
case immediately prior to such Investment, and after giving effect thereto, no
Default or Event of Default is or would be in existence;

 

(c)           Investments
permitted under Section 9.4.;

 

(d)           Investments
in Cash Equivalents;

 

(e)           intercompany
Indebtedness among the Borrower and its Wholly Owned Subsidiaries provided that
such Indebtedness is permitted by the terms of Section 9.3.;

 

(f)            loans
and advances to officers and employees for moving, entertainment, travel and
other similar expenses in the ordinary course of business consistent with past
practices.

 

Section 9.6.  Liens; Negative Pledges; Other Matters.

 

(a)           The
Parent and the Borrower shall not, and shall not permit any Subsidiary or other
Loan Party to, create, assume, or incur any Lien (other than Permitted Liens)
upon any of its properties, assets, income or profits of any character whether
now owned or hereafter acquired if immediately prior to the creation,
assumption or incurring of such Lien, or immediately thereafter, a Default or
Event of Default is or would be in existence, including without limitation, a
Default or Event of Default resulting from a violation of any of the covenants
contained in Section 9.1.

 

(b)           The
Parent and the Borrower shall not, and shall not permit any Subsidiary or other
Loan Party to, enter into, assume or otherwise be bound by any Negative Pledge
except for a Negative Pledge contained in (i) an agreement
(x) evidencing Indebtedness which the Parent, the Borrower or such
Subsidiary may create, incur, assume, or permit or suffer to exist under Section 9.3.,
(y) which Indebtedness is secured by a Lien permitted to exist under the
Loan Documents, and (z) which prohibits the creation of any other Lien on
only the property securing such Indebtedness as of the date such agreement was
entered into; or (ii) in an agreement relating

 

76

 

to the sale of a Subsidiary or assets pending
such sale, provided that in any such case the Negative Pledge applies only to
the Subsidiary or the assets that are the subject of such sale.

 

(c)           The
Parent and the Borrower shall not, and shall not permit any Subsidiary or other
Loan Party 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 (other than an Excluded 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 Subsidiary; (ii) pay any
Indebtedness owed to the Parent, the Borrower or any Subsidiary; (iii) make
loans or advances to the Parent, the Borrower or any Subsidiary; or (iv) transfer
any of its property or assets to the Parent, the Borrower or any Subsidiary.

 

Section 9.7.  Merger, Consolidation, Sales of Assets and
Other Arrangements.

 

The Parent and the Borrower shall not, and shall not
permit any Subsidiary or other Loan Party to: (i) enter into any
transaction of merger or consolidation; (ii) liquidate, wind up or
dissolve itself (or suffer any liquidation or dissolution); or (iii) convey,
sell, lease, sublease, transfer or otherwise dispose of, in one transaction or
a series of transactions, all or substantially all of its business or assets,
whether now owned or hereafter acquired; provided, however, that:

 

(a)           any
of the actions described in the immediately preceding clauses (i) through
(iii) may be taken with respect to any Subsidiary or any other Loan Party
(other than the Parent and the Borrower) so long as immediately prior to the
taking of such action, and immediately thereafter and after giving effect
thereto, no Default or Event of Default is or would be in existence;
notwithstanding the foregoing, any such Loan Party (other than the Parent and
the Borrower) may enter into a transaction of merger pursuant to which such
Loan Party is not the survivor of such merger only if (i) the Borrower
shall have given the Agent and the Lenders at least 10 Business Days’ prior
written notice of such merger, such notice
to include a certification to the effect that immediately after and
after giving effect to such action, no Default or Event of Default is or would
be in existence; (ii) if the survivor entity is a Material Subsidiary
within 5 Business Days of consummation of such merger, the survivor entity (if
not already a Guarantor) shall have executed and delivered an assumption agreement
in form and substance satisfactory to the Agent pursuant to which such survivor
entity shall expressly assume all of such Loan Party’s Obligations under the
Loan Documents to which it is a party; (iii) within 30 days of
consummation of such merger, the survivor entity delivers to the Agent the
following: (A) if the survivor entity is a Material Subsidiary, items of
the type referred to in Sections 5.1.(a)(v) through (viii) with
respect to the survivor entity as in effect after consummation of such merger
(if not previously delivered to the Agent and still in effect), (B) copies
of all documents entered into by such Loan Party or the survivor entity to
effectuate the consummation of such merger, including, but not limited to,
articles of merger and the plan of merger, (C) copies, certified by the
Secretary or Assistant Secretary (or other individual performing similar
functions) of such Loan Party or the survivor entity, of all corporate and
shareholder action authorizing such merger and (D) copies of any filings
with the Securities and Exchange Commission in connection with such merger; and
(iv) such Loan Party and the survivor entity each takes such other action
and delivers such other documents, instruments, opinions and agreements as the
Agent may reasonably request;

 

77

 

(b)           the
Parent, the Borrower, its other Subsidiaries and the other Loan Parties may
lease and sublease their respective assets, as lessor or sublessor (as the case
may be), in the ordinary course of their business;

 

(c)           a
Person may merge with and into the Parent or the Borrower so long as (i) the
Parent or the Borrower is the survivor of such merger, (ii) immediately
prior to such merger, and immediately thereafter and after giving effect
thereto, no Default or Event of Default is or would be in existence, and (iii) the
Borrower shall have given the Agent and the Lenders at least 10 Business Days’
prior written notice of such merger, such
notice to include a certification as to the matters described in the
immediately preceding clause (ii) (except that such prior
notice shall not be required in the case of the merger of a Subsidiary with and
into the Borrower or a Subsidiary (other than the Borrower) with and into the
Parent);

 

(d)           the
Parent, the Borrower and each Subsidiary may sell, transfer, lease or dispose
of assets among themselves.

 

Section 9.8.  Fiscal Year.

 

The Parent shall not change its fiscal year
from that in effect as of the Agreement Date.

 

Section 9.9.  Modifications to Material Contracts.

 

The Parent
and the Borrower shall not, and shall not 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.

 

Section 9.10.  Modifications of Organizational Documents.

 

The Parent and the Borrower shall not, and
shall not permit any Loan Party or other Subsidiary to, amend, supplement,
restate or otherwise modify its articles or certificate of incorporation,
by-laws, operating agreement, declaration of trust, partnership agreement or
other applicable organizational document if such amendment, supplement,
restatement or other modification could reasonably be expected to have a
Material Adverse Effect.

 

Section 9.11.  Transactions with Affiliates.

 

The Parent and the Borrower shall not, and
shall not permit any of its Subsidiaries or any other Loan Party 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
(other than a Loan Party), except transactions in the ordinary course of and
pursuant to the reasonable requirements of the business of the Parent, the
Borrower or any of its other Subsidiaries and upon fair and reasonable terms
which are no less favorable to the Parent, the Borrower or such Subsidiary than
would be obtained in a comparable arm’s length transaction with a Person that
is not an Affiliate.

 

78

 

Section 9.12.  ERISA Exemptions.

 

The Parent and 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.

 

ARTICLE X.
DEFAULT

 

Section 10.1.  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 of Principal.  The
Borrower shall fail to pay when due (whether upon demand, at maturity, by
reason of acceleration or otherwise) the principal of any of the Loans, or any
Reimbursement Obligation.

 

(b)           Default
in Payment of Interest and Other Obligations.  The Borrower shall fail to pay when due any
interest on any of the Loans or any of the 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 other
Loan Party under any Loan Document to which it is a party, and such failure
shall continue for a period of 5 Business Days.

 

(c)           Default
in Performance.  (i) The Borrower
or the Parent shall fail to perform or observe any term, covenant, condition or
agreement contained in Section 8.4.(i) or in Article IX. or (ii) the
Parent, the Borrower or any other 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
in the case of this clause (ii) only such failure shall continue for
a period of 30 days after the earlier of (x) the date upon which a
Responsible Officer of the Borrower, the Parent or such other Loan Party
obtains knowledge of such failure or (y) the date upon which the Borrower
or the Parent has received written notice of such failure from the Agent.

 

(d)           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 or made or deemed
made by or on behalf of any Loan Party to the Agent or any Lender, shall at any
time prove to have been incorrect or misleading, in light of the circumstances
in which made or deemed made, in any material respect when furnished or made or
deemed made.

 

(e)           Indebtedness
Cross-Default; Derivatives Contracts.

 

(i)            The Parent, the Borrower, any other
Subsidiary or any other Loan Party shall fail to pay when due and payable,
within any applicable grace or cure period, the principal of, or interest on,
any Indebtedness (other than the Loans and Reimbursement

 

79

 

Obligations) having an aggregate outstanding
principal amount of $50,000,000 or more (“Material Indebtedness”); 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;

 

(iii)          any other event shall have occurred
and be continuing which permits any holder or holders of Material Indebtedness,
any trustee or agent acting on behalf of such holder or holders or any other
Person, to accelerate the maturity of any such Material Indebtedness or require
any such Material Indebtedness to be prepaid or repurchased prior to its stated
maturity, and all applicable grace or cure periods shall have expired; or

 

(iv)          there occurs under any Derivatives
Contract an Early Termination Date (as defined in such Derivatives Contract)
resulting from (A) any event of default under such Derivatives Contract as
to which any Loan Party is the Defaulting Party (as defined in such Derivatives
Contract) or (B) any Termination Event (as so defined) under such
Derivatives Contract as to which any Loan Party is an Affected Party (as so
defined) and, in either event, the Derivatives Termination Value owed by any
Loan Party as a result thereof is $50,000,000 or more and such Loan Party shall
fail to pay such Derivatives Termination Value as and when due.

 

(f)            Voluntary
Bankruptcy Proceeding.  The Parent,
the Borrower, any other Loan Party or any Significant 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; or (vii) take any action
indicating its consent to, approval of or acquiescence in any of the foregoing.

 

(g)           Involuntary
Bankruptcy Proceeding.  A case or
other proceeding shall be commenced against the Parent, the Borrower, any other
Loan Party or any Significant 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 such
case or proceeding shall continue undismissed or

 

80

 

unstayed for a period of
60 consecutive calendar days, or an order granting the remedy or other
relief requested in such case or proceeding against the Parent, the Borrower,
such Significant Subsidiary or such other Loan Party (including, but not
limited to, an order for relief under such Bankruptcy Code or such other
federal bankruptcy laws) shall be entered.

 

(h)           Litigation;
Enforceability.  The Parent, the
Borrower or any other Loan Party shall disavow, revoke or terminate (or attempt
to 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 this Agreement,
any Note or any other Loan Document or this Agreement, any Note, the Guaranty
or any other Loan Document shall cease to be in full force and effect (except
as a result of the express terms thereof).

 

(i)            Judgment.  A judgment or order for the payment of money
or for an injunction shall be entered against the Parent, the Borrower, any
Significant Subsidiary or any other Loan Party, by any court or other tribunal
and (i) such judgment or order shall continue for a period of 30 days
without being paid, stayed or dismissed through appropriate appellate
proceedings and (ii) either (A) the amount of such judgment or order
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 outstanding judgments or
orders entered against the Parent, the Borrower, such Subsidiaries and such other
Loan Parties, $50,000,000 or (B) in the case of an injunction or other
non-monetary judgment, such judgment could reasonably be expected to have a
Material Adverse Effect.

 

(j)            Attachment.  A warrant, writ of attachment, execution or
similar process shall be issued against any property of the Parent, the
Borrower, any Significant Subsidiary or any other Loan Party which exceeds,
individually or together with all other such warrants, writs, executions and
processes, $50,000,000 in amount and such warrant, writ, execution or process
shall not be discharged, vacated, stayed or bonded for a period of 30 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
any Loan Party.

 

(k)           ERISA.  Any member of the ERISA Group shall fail to
pay when due an amount or amounts aggregating in excess of $20,000,000 which it
shall have become liable to pay under Title IV of ERISA; or notice of intent to
terminate a Plan or Plans having aggregate Unfunded Liabilities in excess of
$20,000,000 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 Plan or Plans
having aggregate Unfunded Liabilities in excess of $20,000,000; or a condition
shall exist by reason of which the PBGC would be entitled to obtain a decree
adjudicating that any such 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

 

81

 

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 $20,000,000.

 

(l)            Loan
Documents.  An Event of Default (as
defined therein) shall occur under any of the other Loan Documents (other than
the New York Mortgages).

 

(m)          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 25% of the total voting power of the then outstanding voting stock of the
Parent;

 

(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 Parent (together
with any new directors whose election by such Board or whose nomination for
election by the shareholders of the Parent 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 two-thirds of the
Board of Directors of the Parent then in office; or

 

(iii)          The Parent or a Wholly Owned
Subsidiary of the Parent shall cease to be the sole general partner of the
Borrower or shall cease to have the sole and exclusive power to exercise all
management and control over the Borrower.

 

Notwithstanding anything to the contrary in this Section, (i) the
failure of any Loan Party to perform or observe any term, covenant, condition
or agreement contained any New York Mortgage to which it is a party shall not
constitute a Default or Event of Default and (ii) the occurrence of a
Default or Event of Default (as defined in any New York Mortgage) shall not
constitute a Default or Event of Default; provided, however, the preceding
shall in no way limit or impair the rights of the Agent and the Lenders with
respect to any Default or Event of Default resulting from the failure of any
Loan Party to perform or observe the same or any similar term, covenant,
condition or agreement contained in any other Loan Document.

 

Section 10.2.  Remedies Upon Event of Default.

 

Upon the occurrence 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 Section 10.1.(f) or 10.1.(g), (A)(i) the principal
of, and all accrued interest on, the Loans and the Notes at the time
outstanding, (ii) an amount equal to the Stated Amount of all

 

82

 

Letters of Credit outstanding as of the date
of the occurrence of such Event of Default for deposit into the Collateral
Account pursuant to Section 10.4. and (iii) all of the other
Obligations of the Borrower, including, but not limited to, the other amounts
owed to the Lenders, the Swingline Lender 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 (B) all of the Commitments, the obligation of the Lenders to
make Revolving Loans, the Swingline Commitment, the obligation of the Swingline
Lender to make Swingline Loans, and the obligation of the Agent to issue
Letters of Credit hereunder, shall all immediately and automatically terminate.

 

(ii)           Optional.  If any other Event of Default shall exist,
the Agent shall, at the direction of the Requisite Lenders:  (A) declare (1) the principal of,
and accrued interest on, the Loans and the Notes at the time outstanding, (2) an
amount equal to the Stated Amount of all Letters of Credit outstanding as of
the date of the occurrence of such other Event of Default for deposit into the
Collateral Account pursuant to Section 10.4. and (3) 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 (B) terminate
the Commitments, the Swingline Commitment, the obligation of the Lenders to
make Loans hereunder and the obligation of the Agent to issue Letters of Credit
hereunder.

 

(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 business
operations of the Borrower and its Subsidiaries and to exercise such power as
the court shall confer upon such receiver.

 

Section 10.3.  Allocation of Proceeds.

 

If an Event of Default shall exist 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:

 

83

 

(a)           amounts due the Agent in respect of
fees and expenses due under Section 12.2.;

 

(b)           amounts due the Lenders in respect of
fees and expenses due under Section 12.2., pro rata in the amount then due
each Lender;

 

(c)           payments of interest on Swingline
Loans;

 

(d)           payments of interest on all other
Loans and Reimbursement Obligations, to be applied for the ratable benefit of
the Lenders;

 

(e)           payments of principal of Swingline
Loans;

 

(f)            payments of principal of all other
Loans, Reimbursement Obligations and other Letter of Credit Liabilities, to be
applied for the ratable benefit of the Lenders; provided, however, to the
extent that any amounts available for distribution pursuant to this subsection are
attributable to the issued but undrawn amount of an outstanding Letter of
Credit, such amounts shall be paid to the Agent for deposit into the Collateral
Account;

 

(g)           amounts due the Agent and the Lenders
pursuant to Sections 11.7. and 12.9.;

 

(h)           payment of all other Obligations and
other amounts due and owing by the Borrower and the other Loan Parties under
any of the Loan Documents, if any, to be applied for the ratable benefit of the
Lenders; and

 

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

 

Section 10.4.  Collateral Account.

 

(a)           As
collateral security for the prompt payment in full when due of all Letter of
Credit Liabilities and the other Obligations, the Borrower hereby pledges and
grants to the Agent, for the ratable benefit of the Agent and the Lenders as
provided herein, a security interest in all of its right, title and interest in
and to the Collateral Account and the balances from time to time in the
Collateral Account (including the investments and reinvestments therein
provided for below).  The balances from
time to time in the Collateral Account shall not constitute payment of any
Letter of Credit Liabilities until applied by the Agent as provided herein.  Anything in this Agreement to the contrary
notwithstanding, funds held in the Collateral Account shall be subject to
withdrawal only as provided in this Section.

 

(b)           Amounts
on deposit in the Collateral Account shall be invested and reinvested by the
Agent in such Cash Equivalents as the Agent shall determine in its sole
discretion.  All such investments and
reinvestments shall be held in the name of and be under the sole dominion and
control of the Agent for the ratable benefit of the Lenders.  The Agent shall exercise reasonable care in
the custody and preservation of any funds held in the Collateral Account and
shall be deemed to have exercised such care if such funds are accorded treatment
substantially equivalent

 

84

 

to that which the Agent accords other funds deposited with the Agent,
it being understood that the Agent shall not have any responsibility for taking
any necessary steps to preserve rights against any parties with respect to any
funds held in the Collateral Account.

 

(c)           If
a drawing pursuant to any Letter of Credit occurs on or prior to the expiration
date of such Letter of Credit, the Borrower and the Lenders authorize the Agent
to use the monies deposited in the Collateral Account and proceeds thereof to
make payment to the beneficiary with respect to such drawing or the payee with
respect to such presentment.

 

(d)           If
an Event of Default exists, the Requisite Lenders may, in their discretion, at
any time and from time to time, instruct the Agent to liquidate any such
investments and reinvestments and apply proceeds thereof to the Obligations in
accordance with Section 10.3.

 

(e)           So
long as no Default or Event of Default exists, and to the extent amounts on
deposit in or credited to the Collateral Account exceed the aggregate amount of
the Letter of Credit Liabilities then due and owing, the Agent shall, from time
to time, at the request of the Borrower, deliver to the Borrower within
10 Business Days after the Agent’s receipt of such request from the
Borrower, against receipt but without any recourse, warranty or representation
whatsoever, such amount of the credit balances in the Collateral Account as
exceeds the aggregate amount of the Letter of Credit Liabilities at such time.

 

(f)            The
Borrower shall pay to the Agent from time to time such fees as the Agent
normally charges for similar services in connection with the Agent’s
administration of the Collateral Account and investments and reinvestments of
funds therein.

 

Section 10.5.  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, with the consent of the Requisite Lenders, after notice to the Borrower,
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
have any liability or responsibility whatsoever for the performance of any
obligation of the Borrower under this Agreement or any other Loan Document.

 

Section 10.6.  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.

 

85

 

Section 10.7.  Rescission of Acceleration by Requisite
Lenders.

 

If at any time after acceleration of the
maturity of the 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 be remedied or waived to the
satisfaction of the Requisite Lenders, then by written notice to the Borrower,
the Requisite Lenders may elect, in the sole discretion of such Requisite
Lenders, to rescind and annul the acceleration and its consequences; but such
action shall not affect any subsequent Default or Event of Default or impair
any right or remedy consequent thereon. 
The provisions of the preceding sentence (a) are intended merely to
bind the Lenders to a decision which may be made at the election of the
Requisite Lenders, (b) are not intended to benefit the Borrower and (c) do
not give the Borrower or any other Loan Party the right to require the Lenders
to rescind or annul any acceleration hereunder, even if the conditions set
forth herein are satisfied.

 

ARTICLE XI. THE AGENT

 

Section 11.1.  Authorization and Action.

 

Each Lender hereby 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 or
anything else set forth in this Agreement, each Lender authorizes and directs
the Agent to enter into the Loan Documents 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. 
At the request of a Lender, the Agent will forward to such Lender copies
or, where appropriate, originals of the documents delivered to the Agent
pursuant to this Agreement or the other Loan Documents.  The Agent will also furnish to any Lender,
upon the request of such Lender, a copy of any certificate or notice furnished
to the Agent by the Borrower, any other 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 instructions shall be binding upon all Lenders and
all holders of any of the Obligations; provided, however, that, notwithstanding
anything in this

 

86

 

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 shall not 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 (or all of the Lenders if explicitly
required under any provision of this Agreement) have so directed the Agent to
exercise such right or remedy.

 

Section 11.2.  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 omitted to be taken by it or them under or in connection with
this Agreement or any other Loan Document, except for its or their own gross
negligence or willful misconduct as determined by a court of competent
jurisdiction in a final, non-appealable judgment.  Without limiting the generality of the
foregoing, the Agent: (a) may treat the payee of any Note as the holder
thereof until the Agent receives written notice of the assignment or transfer thereof
signed by such payee and in form satisfactory to the Agent; (b) 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; (c) makes no warranty or representation to any
Lender or any other Person and shall not be responsible to any Lender or any
other Person for any statements, warranties or representations made by any
Person in or in connection with this Agreement or any other Loan Document; (d) shall
not have any duty to ascertain or to inquire as to the performance or observance
of any of the terms, covenants or conditions of any 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 Parent, the Borrower or other
Persons (except for the delivery to it of any certificate or document
specifically required to be delivered to it pursuant to Section 5.1.) or
inspect the property, books or records of the Parent, the Borrower or any other
Person; (e) shall not 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; and (f) shall incur no 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 or
telecopy) believed by it to be genuine and signed, sent or given by the proper
party or parties.

 

Section 11.3.  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

 

87

 

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 11.4.  Wachovia as Lender.

 

Wachovia, 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 Wachovia in
each case in its individual capacity. 
Wachovia 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 Parent, 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
Loan Parties 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, Wachovia or its affiliates may receive information regarding
the Parent, 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 11.5.  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 Parent or 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.  Each Lender shall reply promptly, but in any
event within 10 Business Days (or such lesser or greater period as may be
specifically required under the Loan Documents) of receipt of such
communication.  Except as otherwise
provided in this Agreement, 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 written explanation of the reasons behind such
objection) within the applicable time period for reply, such Lender shall be
deemed to have conclusively approved of or consented to such recommendation or
determination.

 

Section 11.6.  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 as to the financial condition, operations, creditworthiness,
solvency or other information concerning the business or affairs of the Parent,
the Borrower, any other Loan Party, any Subsidiary or any other Person to such
Lender and that no act by the Agent

 

88

 

hereafter taken, including any
review of the affairs of the Parent, the Borrower, any other Loan Party or any
other Subsidiary, shall be deemed to constitute any such representation or
warranty by the Agent to any Lender. 
Each Lender acknowledges that it has made its own credit and legal
analysis and decision to enter into this Agreement and the transactions
contemplated hereby, 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 the financial statements of the
Parent, the Borrower, the Subsidiaries or any other Affiliate thereof, and
inquiries of such Persons, its independent due diligence of the business and affairs
of the Parent, the Borrower, the other Loan Parties, the 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.  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. 
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 Parent, 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 11.7.  Indemnification of Agent.

 

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
Commitment Percentage, from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, reasonable out-of-pocket
costs and 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 misconduct as determined by a court of competent
jurisdiction in a final, non-appealable judgment or if the Agent fails to
follow the written direction of the Requisite Lenders (or all of the Lenders if
expressly required hereunder) unless such failure results from the Agent
following the advice of counsel to the Agent of which advice the Lenders have
received notice.  Without limiting the
generality of the foregoing but subject to the preceding proviso, 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 reasonable
counsel fees of the counsel(s) of the Agent’s own choosing) incurred by the
Agent in connection with the preparation, negotiation, execution, or
enforcement of, or legal advice with respect to the rights

 

89

 

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 reasonable 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 11.8.  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.  The Agent may be removed
as Agent under the Loan Documents for good cause by the Requisite Lenders
(determined exclusive of the Lender then acting as Agent) upon 30-days’ prior
written notice to the Agent.  Upon any
such resignation or removal, the Requisite Lenders (other than the Lender then
acting as Agent, in the case of the removal of the Agent under the immediately
preceding sentence) 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 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 or the Lenders’ removal of the resigning Agent, then the
resigning or removed 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 a commercial bank having total combined assets of at least
$50,000,000,000.  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 retiring or removed Agent, and the retiring or
removed Agent shall be discharged from its duties and obligations under the
Loan Documents.  Such successor Agent
shall issue letters of credit in substitution for the Letters of Credit, if
any, outstanding at the time of such succession or shall make other
arrangements satisfactory to the current Agent, in either case, to assume
effectively the obligations of the current Agent with respect to such Letters
of Credit.  After any Agent’s resignation
or removal hereunder as Agent, the provisions of this Article XI. 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.

 

Section 11.9.  Titled Agents.

 

Each of the Titled Agents in each such respective capacity,
assumes no responsibility or obligation hereunder, including, without
limitation, for servicing, enforcement or collection of

 

90

 

any of the Loans, or for
any duties as an agent hereunder for the Lenders.  The titles of “Co-Lead Arranger” “Book
Manager”, “Syndication Agent” and “Co-Documentation Agent” are solely honorific
and imply no fiduciary responsibility on the part of the Titled Agents to the
Agent, the Borrower or any Lender 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 XII. MISCELLANEOUS

 

Section 12.1.  Notices.

 

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:

 

SL Green Operating
Partnership, L.P.

420 Lexington Avenue

New York, New York  10170

Attn: 
Chief Financial Officer

Telephone:            (212)
594-2700

Telecopy:              (212)
216-1785

 

with copies to:

 

SL Green Operating
Partnership, L.P.

420 Lexington Avenue

New York, New York 
10170

Attn: 
General Counsel

Telephone:            (212)
594-2700

Telecopy:              (212)
216-1785

 

and to

 

Greenberg Traurig, L.L.P.

200 Park Avenue

New York, New York 10166

Attn: 
Robert J. Ivanhoe, Esq.

Telephone:            (212)
801-9333

Telecopy:              (212)
801-6400

 

91

 

If to the Agent:

 

Wachovia Bank, National Association

301 S. College Street, NC0172

Charlotte, North Carolina 28288

Attn: 
Rex E. Rudy

Telephone:            (704)
383-6506

Telecopy:              (704)
383-6205

 

If to 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 Acceptance Agreement;

 

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.  All such notices and other
communications shall be effective (i) if mailed, when received; (ii) if
telecopied, when transmitted; or (iii) if hand delivered or sent by
overnight courier, 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 good faith to have been given by a
Person authorized to deliver such notice or for otherwise acting in good faith
hereunder. Failure of a Person designated to get a copy of a notice to receive
such copy shall not affect the validity of notice properly given to any other
Person.

 

Section 12.2.  Expenses.

 

The Borrower agrees (a) to pay or
reimburse the Agent and each of the Co-Lead Arrangers for all of their
reasonable out-of-pocket costs and 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 expenses
and travel expenses relating to closing), and the consummation of the
transactions contemplated thereby, including the reasonable fees and
disbursements of counsel to the Agent and each of the Co-Lead Arrangers and
costs and expenses in connection with the use of IntraLinks, Inc.,
SyndTrak or other similar information transmission systems in connection with
the Loan Documents, (b) to pay or reimburse the Agent and the Lenders for
all their reasonable 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 and any and all
liabilities with respect to, or resulting from any failure to pay or delay in
paying, documentary, stamp, excise and other similar taxes, if any, which may
be payable or determined to be payable in connection with the execution and delivery
of any of the Loan

 

92

 

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 subsections, to pay or reimburse the Agent and the
Lenders for all their costs and expenses incurred in connection with any
bankruptcy or other proceeding of the type described in Section 10.1.(f) or
10.1.(g), including the reasonable fees and disbursements of counsel to the
Agent and any Lender, 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.  If
the Borrower shall fail to pay any amounts required to be paid by it pursuant
to this Section, the Agent and/or the Lenders may pay such amounts on behalf of
the Borrower and either deem the same to be Loans outstanding hereunder or
otherwise Obligations owing hereunder.

 

Section 12.3.  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 Borrower hereby authorizes the Agent, each
Lender and each of their respective affiliates, at any time while an Event of
Default exists, without prior notice to the Borrower or to any other Person,
any such notice being hereby expressly waived, but in the case of a Lender or
an affiliate of a Lender subject to receipt of the prior written consent of the
Agent exercised in its sole discretion, which consent shall not be unreasonably
withheld or delayed, 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 10.2.,
and although such obligations shall be contingent or unmatured.

 

Section 12.4.  Litigation; Jurisdiction; Other Matters;
Waivers.

 

(a)           EACH
PARTY HERETO ACKNOWLEDGES THAT ANY DISPUTE OR CONTROVERSY BETWEEN OR AMONG THE
PARENT, 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, THE
PARENT AND THE BORROWER HEREBY WAIVES ITS RIGHT TO A 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 PARENT, THE
BORROWER, THE AGENT OR ANY OF THE LENDERS OF ANY KIND OR NATURE RELATING TO ANY
OF THE LOAN DOCUMENTS.

 

(b)           EACH
OF THE PARENT, THE BORROWER, THE AGENT AND EACH LENDER HEREBY AGREES THAT THE
FEDERAL DISTRICT COURT OF THE

 

93

 

SOUTHERN DISTRICT OF NEW YORK
AND ANY STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, NEW YORK, NEW YORK,
SHALL HAVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OR
AMONG THE PARENT, 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 PARENT, THE BORROWER AND
EACH OF THE LENDERS EXPRESSLY SUBMIT AND CONSENT IN ADVANCE TO SUCH
JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED IN SUCH COURTS WITH RESPECT
TO SUCH CLAIMS OR DISPUTES.  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.

 

Section 12.5.  Successors and Assigns.

 

(a)           Successors
and Assigns Generally.  The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted
hereby, except that the Borrower may not assign or otherwise transfer any of
its rights or obligations hereunder without the prior written consent of the
Agent and each Lender and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder except (i) to an assignee in accordance
with the provisions of the immediately following subsection (b), (ii) by
way of participation in accordance with the provisions of the immediately
following subsection (d) or (iii) by way of pledge or assignment
of a security interest subject to the restrictions of the immediately following
subsection (f) (and any other attempted assignment or transfer by any
party hereto shall be null and void). 
Nothing in this Agreement, expressed or implied, shall be construed to
confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby, Participants to the extent provided in
the immediately following subsection (d) and, to the extent expressly
contemplated hereby, the affiliates and the partners, directors, officers,
employees, agents and advisors of the Agent and the Lenders and of their
respective affiliates) any legal or equitable right, remedy or claim under or
by reason of this Agreement.

 

94

 

(b)           Assignments
by Lenders.  Any Lender may at any
time assign to one or more Eligible Assignees (an “Assignee”) all or a portion
of its rights and obligations under this Agreement (including all or a portion
of its Commitment and the Loans at the time owing to it); provided that
any such assignment shall be subject to the following conditions:

 

(i)            Minimum Amounts.

 

(A)          in the case of an assignment of the
entire remaining amount of the assigning Lender’s Commitment and the Loans at
the time owing to it or in the case of an assignment to a Lender, an affiliate
of a Lender or an Approved Fund, no minimum amount need be assigned; and

 

(B)           in any case not described in the
immediately preceding subsection (A), the aggregate amount of the
Commitment (which for this purpose includes Loans outstanding thereunder) or,
if the applicable Commitment is not then in effect, the principal outstanding
balance of the Loans of the assigning Lender subject to each such assignment
shall not be less than $10,000,000, unless each of the Agent and, so long as no
Default or Event of Default shall exist, the Borrower otherwise consents (each
such consent not to be unreasonably withheld or delayed).

 

(ii)           Proportionate Amounts.  Each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement with respect to the Loan or the Commitment
assigned, except that this clause (ii) shall not apply to rights in
respect of a Bid Rate Loan.

 

(iii)          Required Consents.  No consent shall be required for any
assignment except to the extent required by clause (i)(B) of this subsection (b) and,
in addition:

 

(A)          the consent of the Borrower (such
consent not to be unreasonably withheld or delayed) shall be required unless
(x) a Default or Event of Default shall exist at the time of such
assignment or (y) such assignment is to a Lender, an affiliate of a Lender
or an Approved Fund; and

 

(B)           the consent of the Agent (such
consent not to be unreasonably withheld or delayed) shall be required for
assignments in respect of a Commitment if such assignment is to a Person that
is not already a Lender with a Commitment.

 

(iv)          Assignment and Acceptance.  The parties to each assignment shall execute
and deliver to the Agent an Assignment and Acceptance, together with a
processing and recordation fee of $3,500 for each assignment, and the assignee,
if it is not a Lender, shall deliver to the Agent an administrative
questionnaire in the form customarily required by the Agent.

 

95

 

(v)           No Assignment to Borrower.  No such assignment shall be made to the
Borrower or any of the Borrower’s Affiliates or Subsidiaries.

 

(vi)          No Assignment to Natural Persons.  No such assignment shall be made to a natural
person.

 

Subject to acceptance and recording thereof by the Agent pursuant to
the immediately following subsection (c), from and after the effective
date specified in each Assignment and Acceptance made in accordance with this
Section, the assignee thereunder shall be a party to this Agreement and, to the
extent of the interest assigned by such Assignment and Acceptance, have the
rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Acceptance, be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto) but shall continue to be entitled to the
benefits of Sections 4.4., 12.2. and 12.9. and the other provisions of this Agreement and the other
Loan Documents as provided in Section 12.10.  Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does
not comply with this paragraph shall be treated for purposes of this Agreement
as a sale by such Lender of a participation in such rights and obligations in
accordance with the immediately following subsection (d).

 

(c)           Register.  The Agent, acting solely for this purpose as
an agent of the Borrower, shall maintain at the Principal Office a copy of each
Assignment and Acceptance delivered to it and a register for the recordation of
the names and addresses of the Lenders, and the Commitments of, and principal
amounts of the Loans owing to, each Lender pursuant to the terms hereof from
time to time (the “Register”).  The
entries in the Register shall be conclusive absent manifest error, and the
Borrower, the Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection
by the Borrower and any Lender, at any reasonable time and from time to time
upon reasonable prior notice.

 

(d)           Participations.  Any Lender may at any time, without the
consent of, or notice to, the Borrower or the Agent, sell participations to any
Person (other than a natural person or the Borrower or any of the Borrower’s
Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such
Lender’s rights and/or obligations under this Agreement (including all or a
portion of its Commitment and/or the Loans owing to it); provided that (i) such
Lender’s obligations under this Agreement shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) the Borrower, the Agent and the
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant to which
a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver of
any provision of any Loan Document described in the

 

96

 

second sentence of Section 12.6.
that adversely affects such Participant. 
Subject to the immediately following subsection (e), the Borrower
agrees that each Participant shall be entitled to the benefits of
Sections 3.12., 4.1., 4.4. to the same extent as if it were
a Lender and had acquired its interest by assignment pursuant to paragraph (b) of
this Section.    Upon request from the
Agent (or from the Borrower through the Agent), a Lender shall notify the Agent
and the Borrower of the sale of any participation hereunder.

 

(e)           Limitations
upon Participant Rights.  A
Participant shall not be entitled to receive any greater payment under
Sections 3.12. and 4.1. than the applicable Lender would
have been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made
with the Borrower’s prior written consent. 
A Participant that would be a Foreign Lender if it were a Lender shall
not be entitled to the benefits of Section 3.12. unless the Borrower is notified of the participation sold to
such Participant and such Participant agrees, for the benefit of the Borrower
and the Agent, to comply with Section 3.12.(c) as though it were a Lender.

 

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

 

(g)           No
Registration.  Each Lender agrees
that, without the prior written consent of the Borrower and the Agent, it will
not make any assignment hereunder in any manner or under any circumstances that
would require registration or qualification of, or filings in respect of, any
Loan or Note under the Securities Act or any other securities laws of the
United States of America or of any other jurisdiction.

 

(h)           Designated
Lenders.  Any Lender (each, a “Designating
Lender”) may at any time while the Borrower 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, and the provisions in the immediately preceding
subsections (b) and (d) 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;

 

97

 

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 11.7. and any sums otherwise payable
to the Borrower by the Designated Lender. 
Each Designating Lender shall serve as the administrative 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 administrative 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
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.

 

Section 12.6.  Amendments.

 

(a)           Except
as otherwise expressly provided in this Agreement, any consent or approval
required or permitted by this Agreement or any other Loan Document to be given
by the Lenders may be given, and any term of this Agreement or of any other
Loan Document may be amended, and the performance or observance by the Borrower
or any other Loan Party of any terms of this Agreement or such other Loan
Document or 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 (and, in the case of an amendment to any Loan Document, the written
consent of each Loan Party a party thereto).

 

(b)           Notwithstanding
the foregoing, without the prior written consent of each Lender adversely
affected thereby, no amendment, waiver or consent shall do any of the
following:

 

(i)            increase the Commitments of the
Lenders (except for any increase in the Commitments effectuated pursuant to Section 2.16.) or subject the Lenders to any additional
obligations;

 

(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;

 

98

 

(iii)          reduce the amount of any Fees payable
hereunder or postpone any date fixed for payment thereof;

 

(iv)          modify the definition of the term “Termination
Date” (except as contemplated under Section 2.13.) or otherwise postpone
any date fixed for any payment of any principal of, or interest on, any Loans
or any other Obligations (including the waiver of any Default or Event of
Default as a result of the nonpayment of any such Obligations as and when due),
or extend the expiration date of any Letter of Credit beyond the Termination
Date;

 

(v)           amend or otherwise modify the
provisions of Section 3.2.;

 

(vi)          modify the definition of the term “Requisite
Lenders” or otherwise 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, including without limitation, any
modification of this Section 12.6. if such modification would have such
effect;

 

(vii)         release any Guarantor from its
obligations under the Guaranty (except as otherwise permitted under Section 7.12.(b))
or release the Borrower from its obligations under this Agreement and the other
Loan Documents;

 

(viii)        amend or otherwise modify the provisions
of Section 2.15.(a); or

 

(ix)           increase the number of Interest
Periods permitted with respect to Loans under Section 2.6.

 

(c)           No
amendment, waiver or consent, unless in writing and signed by the Agent, in
such capacity, 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.

 

(d)           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.  Except as otherwise provided in
Section 11.5., 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 any 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 any Loan
Party shall entitle such Loan Party to any other or further notice or demand in
similar or other circumstances.

 

99

 

Section 12.7.  Nonliability of Agent and Lenders.

 

The relationship between the Borrower and the
Lenders and the Agent shall be solely that of borrower and lender.  Neither the Agent nor any Lender shall have
any fiduciary responsibilities to the Borrower or the Parent 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 or the Parent to review or inform the
Borrower or the Parent of any matter in connection with any phase of the
business or operations of the Borrower or the Parent.

 

Section 12.8.  Confidentiality.

 

The Agent and each Lender shall use reasonable efforts
to assure that information about the Parent, the Borrower, the other Loan
Parties and other Subsidiaries, and the Properties thereof and their
operations, affairs and financial condition, not generally disclosed to the
public, which is furnished to the Agent or any Lender pursuant to the
provisions of this Agreement or any other Loan Document, is used only for the
purposes of this Agreement and the other Loan Documents and shall not be
divulged to any Person other than the Agent, the Lenders, and their respective
agents who are actively and directly participating in the evaluation,
administration or enforcement of the Loan Documents and other transactions
between the Agent or such Lender, as applicable, and the Borrower, but in any
event the Agent and the Lenders may make disclosure: (a) to any of their
respective affiliates (provided they shall agree to keep such information
confidential in accordance with the terms of this Section 12.8.); (b) as
reasonably requested by any potential or actual 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 or as
otherwise required by Applicable Law; (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) after the
happening and during the continuance of an Event of Default, 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 Documents; (f) upon Borrower’s
prior consent (which consent shall not be unreasonably withheld), to any contractual
counter-parties to any swap or similar hedging agreement or to any rating
agency; and (g) to the extent such information (x) becomes publicly
available other than as a result of a breach of this Section actually
known to such Lender to be such a breach or (y) becomes available to the
Agent or any Lender on a nonconfidential basis from a source other than the
Borrower or any Affiliate. 
Notwithstanding the foregoing, the Agent and each Lender may disclose
any such confidential information, without notice to the Borrower or any other
Loan Party, to Governmental Authorities in connection with any regulatory
examination of the Agent or such Lender or in accordance with the regulatory
compliance policy of the Agent or such Lender.

 

100

 

Section 12.9.  Indemnification.

 

(a)           The
Borrower shall and hereby agrees to indemnify, defend and hold harmless the
Agent, each of the Lenders, any affiliate of the Agent or any Lender, and their
respective directors, officers, shareholders, agents, employees and counsel
(each referred to herein as an “Indemnified Party”) from and against any and
all of the following (collectively, the “Indemnified Costs”):  losses, costs, claims, damages, liabilities,
deficiencies, judgments or reasonable expenses of every kind and nature
(including, without limitation, amounts paid in settlement, court costs and the
reasonable 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 3.12., 4.1.
or 4.4. or expressly excluded from the coverage of such Section 3.12., 4.1.
or 4.4.) 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 or
issuance of Letters of Credit hereunder; (iii) any actual or proposed use
by the Borrower of the proceeds of the Loans or Letters of Credit; (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 Parent, 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 Parent, 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; (ix) any civil penalty or fine
assessed by the OFAC against, and all reasonable costs and expenses (including
counsel fees and disbursements) incurred in connection with defense thereof by,
the Agent or any Lender as a result of conduct of the Borrower, any other Loan
Party or any Subsidiary that violates a sanction enforced by the OFAC; or
(x) any violation or non-compliance by the Parent, 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, whether or not such
Indemnity Proceeding relates in any way to a New York Mortgage; provided,
however, that the Borrower shall not be obligated to indemnify any Indemnified
Party for (A) any acts or omissions of such Indemnified Party in
connection with matters described in this subsection to the extent arising
from the gross negligence or willful misconduct of such Indemnified Party, as
determined by a court of competent jurisdiction in a final, non-appealable
judgment or (B) Indemnified Costs to the extent arising directly out of or
resulting directly from claims of one or more Indemnified Parties against
another Indemnified Party.

 

101

 

(b)           The
Borrower’s indemnification obligations under this Section 12.9. 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 regard, this
indemnification shall cover all Indemnified Costs 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 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. If
indemnification is to be sought hereunder by an Indemnified Party, then such
Indemnified Party shall notify the Borrower of the commencement of any
Indemnity Proceeding; provided, however, that the failure to so notify the
Borrower shall not relieve the Borrower from any liability that it may have to
such Indemnified Party pursuant to this Section 12.9.

 

(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)           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 Indemnified Costs 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 if (i) 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). Notwithstanding the
foregoing, an Indemnified Party may settle or compromise any such Indemnity
Proceeding without the prior written consent of the Borrower where (x) no
monetary relief is sought against such Indemnified Party in such Indemnity
Proceeding or (y) there is an allegation of a violation of law by such
Indemnified Party.

 

(e)           If
and to the extent that the obligations of the Borrower under this Section 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.

 

(f)            The
Borrower’s obligations under this Section 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 other
of their obligations set forth in this Agreement or any other Loan Document to
which it is a party.

 

102

 

Section 12.10.  Termination; Survival.

 

At such time as (a) all of the
Commitments have been terminated, (b) all Letters of Credit have
terminated or expired (other than Letters of Credit the expiration dates of
which extend beyond the Termination Date as permitted under Section 2.4.(b) and in respect of which
the Borrower has satisfied the requirements of such Section), (c) none of
the Lenders nor the Swingline Lender is obligated any longer under this
Agreement to make any Loans and (d) 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, the
Lenders and the Swingline Lender are entitled under the provisions of
Sections 3.12., 4.1., 4.4., 11.7., 12.2. and 12.9. and any other provision
of this Agreement and the other Loan Documents, and the provisions of Section 12.4.,
shall continue in full force and effect and shall protect the Agent, the
Lenders and the Swingline Lender (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 12.11.  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 12.12.  GOVERNING LAW.

 

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

 

Section 12.13.  Patriot Act.

 

The Lenders and the Agent each hereby
notifies the Borrower that pursuant to the requirements of the USA Patriot Act
(Title III of Pub. L. 107-56 (signed into law October 26, 2001)), it is
required to obtain, verify and record information that identifies the Borrower,
which information includes the name and address of the Borrower and other
information that will allow such Lender or the Agent, as applicable, to
identify the Borrower in accordance with such Act.

 

Section 12.14.  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.

 

103

 

Section 12.15.  Obligations with Respect to Loan Parties.

 

The obligations of the Parent and 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 Parent or the Borrower may have that the Parent or the Borrower does not
control such Loan Parties.

 

Section 12.16.  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 each of the Parent 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 Parent or 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.  Each of the Parent and 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 12.17.  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 12.18.  Construction.

 

The Parent, the Borrower, the Agent 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 Parent,
the Borrower, the Agent and each Lender.

 

Section 12.19.  New York Mortgages.

 

(a)           Generally.  The parties hereto acknowledge and agree that
the Agent and the Lenders are accepting and will accept the benefits of the New
York Mortgages as an accommodation to the Parent and the Borrower.

 

(b)           Release
of New York Mortgages. Notwithstanding any other provision of this
Agreement or any other Loan Document to the contrary, including without
limitation,

 

104

 

Section 12.6., (i) upon
the Borrower’s written request and at the Borrower’s sole cost and expense, the
Agent shall release any or all of the New York Mortgages or assign any or all
of the New York Mortgages to any Person requested by the Borrower (any such
assignment to be without recourse or warranty whatsoever) and (ii) the
Agent may in its discretion, and shall at the direction of the Requisite
Lenders, release any or all of the New York Mortgages so long as the Agent
shall have given the Borrower written notice at least 5 days’ prior to any such
release; provided, however, the Agent shall not be required to give any such
prior notice to the Borrower if the Agent, in its sole discretion, has
determined that delay of such release would be detrimental to the Agent or the
Lenders.

 

(c)           Indemnity.
Not in limitation of any of the Borrower’s obligations under Section 12.2.
or 12.9., the Borrower shall and hereby agrees to indemnify, defend and hold
harmless the Agent, each Lender and each other 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) incurred by an
Indemnified Party in connection with, arising out of, or by reason of, any
Indemnity Proceeding which is in any way related directly or indirectly to the
failure of any Person to pay any recording tax payable pursuant to N.Y. Tax Law, Ch. 60, Art. 11, Sec. 253 et seq.
or other Applicable Laws of the State of New York or any political subdivision
of such State.

 

(d)           Assignment
of New York Mortgages.  In connection
with the Agent’s and each of the Lender’s acceptance of the benefits of a New
York Mortgage, the Borrower shall cause to be delivered to the Agent each of
the following, in form and substance satisfactory to the Agent:

 

(i)            an assignment of the Indebtedness
secured by such New York Mortgage executed and delivered by each holder of such
Indebtedness;

 

(ii)           the originals (or if not available,
copies) of each outstanding promissory note evidencing such Indebtedness, duly
endorsed to the order of the Agent);

 

(iii)          a copy of such New York Mortgage,
including all amendments thereto, showing all recording information thereon
certified as true, correct and complete by an authorized officer of the
Borrower;

 

(iv)          an assignment of such New York
Mortgage executed by each holder of such Indebtedness (or an authorized agent
acting on behalf of each such holder);

 

(v)           a modification to such New York
Mortgage executed by the applicable Loan Parties, such modification, among
other things, to modify such New York Mortgage to provide that it secures such
principal amounts of the Obligations as corresponds to the principal amount of
Loans advanced hereunder in connection with the assignment of such New York
Mortgage to the Agent;

 

105

 

(vi)          a copy of any environmental assessment
report on the Property subject to such New York Mortgage available to the
Borrower, and if reasonably requested by the Agent, reliance letters from the
environmental engineering firms performing such assessments addressed to the
Agent and the Lenders; provided, however, if such a reliance letter is not
provided, the Agent and the Lenders shall have no obligation to accept an
assignment of such New York Mortgage; and

 

(viii)        such other documents, agreements and
instruments as the Agent on behalf of the Lenders may reasonably request.

 

(e)           The
Borrower represents and warrants that none of the properties encumbered by the
New York Mortgages are located in areas determined by the Federal Emergency
Management Agency to have special flood hazards.

 

[Signatures on Following Pages]

 

106

 

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

 

 

	
   

  	
  SL GREEN OPERATING PARTNERSHIP, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SL GREEN REALTY CORP.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

[Signatures Continued on Next Page]

 

 

[Signature
Page to Credit Agreement dated as of

September 29,
2005 with SL Green Operating Partnership, L.P.]

 

 

	
   

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION, as Agent, as a
  Lender and as Swingline Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

Commitment Amount:

 

$60,000,000.00

 

 

Lending Office (all
Types of Loans):

 

Wachovia Bank, National Association

301 S. College Street, NC0172

Charlotte, North Carolina 28288

Attn: 
Rex E. Rudy

Telephone:      (704)
383-6506

Telecopy:        (704)
383-6205

 

[Signatures Continued on Next
Page]

 

 

[Signature
Page to Credit Agreement dated as of

September 29,
2005 with SL Green Operating Partnership, L.P.]

 

 

	
   

  	
  KEYBANK
  NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

Commitment Amount:

 

$48,000,000.00

 

 

Lending Office (all
Types of Loans):

 

KeyBank National Association

1200 Abernathy Road, N.E.

Suite 1550

Atlanta, GA 
30328

Attn: 
Jay Johns

Telephone:      (770) 510-2103

Telecopy:        (770) 510-2195

 

[Signatures Continued on Next
Page]

 

 

[Signature
Page to Credit Agreement dated as of

September 29,
2005 with SL Green Operating Partnership, L.P.]

 

 

	
   

  	
  COMMERZBANK
  AG NEW YORK AND GRAND

  CAYMAN BRANCHES

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

Commitment Amount:

 

$42,000,000.00

 

 

Lending Office (all
Types of Loans):

 

Commerzbank AG New York

2 World Financial Center

New York, NY 
10281

Attn: 
Christian Berry

Telephone:      (212) 266-7441

Telecopy:        (212) 266-7591

 

[Signatures Continued on Next
Page]

 

 

[Signature
Page to Credit Agreement dated as of

September 29,
2005 with SL Green Operating Partnership, L.P.]

 

 

	
   

  	
  EUROHYPO AG,
  NEW YORK BRANCH

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

Commitment Amount:

 

$42,000,000.00

 

 

Lending Office (all
Types of Loans):

 

Eurohypo AG, New York Branch

1114 Avenue of the Americas

29th Floor

New York, NY 
10036

Attn: 
Mark Fisher

Telephone:      (212) 479-5712

Telecopy:        (212) 479-5800

 

[Signatures Continued on Next
Page]

 

 

[Signature
Page to Credit Agreement dated as of

September 29,
2005 with SL Green Operating Partnership, L.P.]

 

 

	
   

  	
  WELLS FARGO
  BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

Commitment Amount:

 

$42,000,000.00

 

 

Lending Office (all
Types of Loans):

 

Wells Fargo Bank, National Association

40 West 57th Street, 21st
Floor

New York, NY 
10019

Attn: 
Stuart Levy

Telephone:      (212) 315-7302

Telecopy:        (212) 581-0979

 

[Signatures Continued on Next
Page]

 

 

[Signature
Page to Credit Agreement dated as of

September 29,
2005 with SL Green Operating Partnership, L.P.]

 

 

	
   

  	
  BANK OF
  AMERICA, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

Commitment Amount:

 

$30,000,000.00

 

 

Lending Office (all
Types of Loans):

 

Bank of America, N.A.

231 S. LaSalle Street

Mail Code IL 1-231-10-35

Chicago, IL 
60604

Attn: 
Eyal Namordi

Telephone:      (312) 828-2575

Telecopy:        (415) 503-5142

 

[Signatures Continued on Next
Page]

 

 

[Signature
Page to Credit Agreement dated as of

September 29,
2005 with SL Green Operating Partnership, L.P.]

 

 

	
   

  	
  THE BANK OF
  NEW YORK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

Commitment Amount:

 

$30,000,000.00

 

 

Lending Office (all
Types of Loans):

 

The Bank of New York

One Wall Street

21st Floor

New York, NY 
10286

Attn: 
Anthony Filorimo

Telephone:      (212) 635-7519

Telecopy:        (212) 809-9526

 

[Signatures Continued on Next
Page]

 

 

[Signature
Page to Credit Agreement dated as of

September 29,
2005 with SL Green Operating Partnership, L.P.]

 

 

	
   

  	
  ING REAL
  ESTATE FINANCE (USA) LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

Commitment Amount:

 

$30,000,000.00

 

 

Lending Office (all
Types of Loans):

 

ING Real Estate Finance (USA) LLC

230 Park Avenue

New York, NY 
10169

Attn: 
Bill Knickerbocker

Telephone:      (212) 883-2745

Telecopy:        (212) 883-2792

 

[Signatures Continued on Next
Page]

 

 

[Signature
Page to Credit Agreement dated as of

September 29,
2005 with SL Green Operating Partnership, L.P.]

 

 

	
   

  	
  NEW YORK
  PRIVATE BANK & TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

Commitment Amount:

 

$30,000,000.00

 

 

Lending Office (all
Types of Loans):

 

New York Private Bank & Trust

6 E. 43rd Street

New York, NY 
10017

Attn: 
Russell Wyman

Telephone:      (212) 850-4312

Telecopy:        (212) 850-4608

 

[Signatures Continued on Next
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[Signature
Page to Credit Agreement dated as of

September 29,
2005 with SL Green Operating Partnership, L.P.]

 

 

	
   

  	
  SOVEREIGN
  BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

Commitment Amount:

 

$30,000,000.00

 

 

Lending Office (all
Types of Loans):

 

Sovereign Bank

75 State Street, MAI SST 04-11

Boston, MA 
02109

Attn: 
T. Gregory Donohue

Telephone:      (617) 757-5578

Telecopy:        (617) 757-5652

 

[Signatures Continued on Next
Page]

 

 

[Signature
Page to Credit Agreement dated as of

September 29,
2005 with SL Green Operating Partnership, L.P.]

 

 

	
   

  	
  PNC BANK,
  NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

Commitment Amount:

 

$24,000,000.00

 

 

Lending Office (all
Types of Loans):

 

PNC Bank, National Association

Two Tower Center, 18th Floor

East Brunswick, NJ  08816

Attn: 
Brian Kelly

Telephone:      (732) 220-3541

Telecopy:        (732) 220-3755

 

[Signatures Continued on Next
Page]

 

 

[Signature
Page to Credit Agreement dated as of

September 29,
2005 with SL Green Operating Partnership, L.P.]

 

 

	
   

  	
  CITICORP
  NORTH AMERICA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

Commitment Amount:

 

$21,000,000.00

 

 

Lending Office (all
Types of Loans):

 

Citicorp North America, Inc.

390 Greenwich Street

1st Floor

New York, NY 
10013

Attn: 
Malav Kakad

Telephone:      (212) 723-4693

Telecopy:        (646) 291-3638

 

[Signatures Continued on Next
Page]

 

 

[Signature
Page to Credit Agreement dated as of

September 29,
2005 with SL Green Operating Partnership, L.P.]

 

 

	
   

  	
  DEUTSCHE
  BANK TRUST COMPANY AMERICAS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

Commitment Amount:

 

$21,000,000.00

 

 

Lending Office (all
Types of Loans):

 

Deutsche Bank Trust Company Americas

200 Crescent Court

Suite 550

Dallas, TX 
75201

Attn: 
Ann M. Ramsey

Telephone:      (214) 740-7905

Telecopy:        (214) 740-7910

 

[Signatures Continued on Next
Page]

 

 

[Signature
Page to Credit Agreement dated as of

September 29,
2005 with SL Green Operating Partnership, L.P.]

 

 

	
   

  	
  BANK LEUMI
  USA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

Commitment Amount:

 

$15,000,000.00

 

 

Lending Office (all
Types of Loans):

 

Bank Leumi USA

562 Fifth Avenue, Fifth Floor

New York, NY 
10036

Attn: 
Cynthia C. Wilbur

Telephone:      (212) 626-1147

Telecopy:        (212) 626-1239

 

[Signatures Continued on Next
Page]

 

 

[Signature
Page to Credit Agreement dated as of

September 29,
2005 with SL Green Operating Partnership, L.P.]

 

 

	
   

  	
  UNION BANK
  OF CALIFORNIA N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

Commitment Amount:

 

$15,000,000.00

 

 

Lending Office (all
Types of Loans):

 

Union Bank of California N.A.

350 California Street

San Francisco, CA  84104

Attn: 
Jack Kissane

Telephone:      (415) 705-7221

Telecopy:        (415) 433-7438

 

[Signatures Continued on Next
Page]

 

 

[Signature
Page to Credit Agreement dated as of

September 29,
2005 with SL Green Operating Partnership, L.P.]

 

 

	
   

  	
  COMERICA
  BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

Commitment Amount:

 

$10,000,000.00

 

 

Lending Office (all
Types of Loans):

 

Comerica Bank

500 Woodward Avenue

MC 3256

Detroit, MI 
48226

Attn: 
James C. Graycheck

Telephone:      (313) 222-1276

Telecopy:        (313) 222-9295

 

[Signatures Continued on Next
Page]

 

 

[Signature
Page to Credit Agreement dated as of

September 29,
2005 with SL Green Operating Partnership, L.P.]

 

 

	
   

  	
  LEHMAN
  BROTHERS COMMERCIAL BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

Commitment Amount:

 

$10,000,000.00

 

Lending Office (all
Types of Loans):

 

 

Lehman Brothers Commercial Bank

c/o Lehman Brothers

745 7th Avenue

5th Floor

New York, NY 
10019

Attn: 
Janine Shugan

Telephone:      (212) 526-8625

Telecopy:        (917) 522-0139

 

 

EXECUTION COPY

 

 

CREDIT AGREEMENT

 

Dated as of September 29, 2005

 

by and among

 

SL GREEN OPERATING PARTNERSHIP, L.P.,

as
Borrower

 

SL GREEN REALTY CORP.,

as
Parent,

 

WACHOVIA CAPITAL MARKETS,
LLC

and

 

KEYBANK CAPITAL MARKETS,

as
Co-Lead Arrangers

and
Book Managers,

 

WACHOVIA BANK, NATIONAL
ASSOCIATION,

as
Administrative Agent,

 

KEYBANK NATIONAL
ASSOCIATION,

as
Syndication Agent,

 

Each of

WELLS FARGO BANK,
NATIONAL ASSOCIATION,

EUROHYPO AG, NEW YORK
BRANCH

and

COMMERZBANK, AG, NEW YORK
BRANCH

as
Co-Documentation Agents,

 

and

 

THE FINANCIAL INSTITUTIONS INITIALLY SIGNATORY HERETO

AND THEIR ASSIGNEES PURSUANT TO SECTION 12.5.,

as
Lenders

 

 

 

TABLE OF CONTENTS

 

	
  Article I.
  Definitions

  	
   

  
	
   

  	
   

  
	
  Section 1.1.
  Definitions

  	
   

  
	
  Section 1.2. General;
  References to Times

  	
   

  
	
  Section 1.3.
  Financial Attributes of Non-Wholly Owned Subsidiaries

  	
   

  
	
   

  	
   

  
	
  Article II.
  Credit Facility

  	
   

  
	
   

  	
   

  
	
  Section 2.1.
  Revolving Loans

  	
   

  
	
  Section 2.2.
  Bid Rate Loans

  	
   

  
	
  Section 2.3.
  Swingline Loans

  	
   

  
	
  Section 2.4.
  Letters of Credit

  	
   

  
	
  Section 2.5.
  Rates and Payment of Interest on Loans

  	
   

  
	
  Section 2.6. Number of
  Interest Periods

  	
   

  
	
  Section 2.7. Repayment of
  Loans

  	
   

  
	
  Section 2.8. Prepayments

  	
   

  
	
  Section 2.9. Continuation

  	
   

  
	
  Section 2.10.
  Conversion

  	
   

  
	
  Section 2.11. Notes

  	
   

  
	
  Section 2.12.
  Voluntary Reductions of the Commitment

  	
   

  
	
  Section 2.13.
  Extension of Termination Date

  	
   

  
	
  Section 2.14.
  Expiration or Maturity Date of Letters of Credit Past Termination Date

  	
   

  
	
  Section 2.15.
  Amount Limitations

  	
   

  
	
  Section 2.16.
  Increase of Commitments

  	
   

  
	
   

  	
   

  
	
  Article III.
  Payments, Fees and Other General Provisions

  	
   

  
	
   

  	
   

  
	
  Section 3.1.
  Payments

  	
   

  
	
  Section 3.2.
  Pro Rata Treatment

  	
   

  
	
  Section 3.3. Sharing of
  Payments, Etc.

  	
   

  
	
  Section 3.4. Several
  Obligations

  	
   

  
	
  Section 3.5. Minimum Amounts

  	
   

  
	
  Section 3.6. Fees

  	
   

  
	
  Section 3.7. Computations

  	
   

  
	
  Section 3.8. Usury

  	
   

  
	
  Section 3.9. Agreement
  Regarding Interest and Charges

  	
   

  
	
  Section 3.10.
  Statements of Account

  	
   

  
	
  Section 3.11.
  Defaulting Lenders

  	
   

  
	
  Section 3.12. Taxes

  	
   

  
	
   

  	
   

  
	
  Article IV.
  Yield Protection, Etc.

  	
   

  
	
   

  	
   

  
	
  Section 4.1.
  Additional Costs; Capital Adequacy

  	
   

  
	
  Section 4.2. Suspension of
  LIBOR Loans

  	
   

  
	
  Section 4.3. Illegality

  	
   

  
	
  Section 4.4. Compensation

  	
   

  
	
  Section 4.5. Affected Lenders

  	
   

  

 

i

 

	
  Section 4.6. Treatment of
  Affected Loans

  	
   

  
	
  Section 4.7. Change of
  Lending Office

  	
   

  
	
  Section 4.8. Assumptions Concerning
  Funding of LIBOR Loans

  	
   

  
	
   

  	
   

  
	
  Article V.
  Conditions Precedent

  	
   

  
	
   

  	
   

  
	
  Section 5.1. Initial
  Conditions Precedent

  	
   

  
	
  Section 5.2. Conditions
  Precedent to All Loans and Letters of Credit

  	
   

  
	
   

  	
   

  
	
  Article VI.
  Representations and Warranties

  	
   

  
	
   

  	
   

  
	
  Section 6.1. Representations
  and Warranties

  	
   

  
	
  Section 6.2. Survival of
  Representations and Warranties, Etc.

  	
   

  
	
   

  	
   

  
	
  Article VII.
  Affirmative Covenants

  	
   

  
	
   

  	
   

  
	
  Section 7.1. Preservation of
  Existence and Similar Matters

  	
   

  
	
  Section 7.2. Compliance with
  Applicable Law and Material Contracts

  	
   

  
	
  Section 7.3. Maintenance of
  Property

  	
   

  
	
  Section 7.4. Conduct of
  Business

  	
   

  
	
  Section 7.5. Insurance

  	
   

  
	
  Section 7.6. Payment of Taxes
  and Claims

  	
   

  
	
  Section 7.7. Visits and
  Inspections

  	
   

  
	
  Section 7.8. Use of Proceeds;
  Letters of Credit

  	
   

  
	
  Section 7.9. Environmental
  Matters

  	
   

  
	
  Section 7.10.
  Books and Records

  	
   

  
	
  Section 7.11.
  Further Assurances

  	
   

  
	
  Section 7.12. New Guarantors

  	
   

  
	
  Section 7.13.
  REIT Status

  	
   

  
	
  Section 7.14.
  Exchange Listing

  	
   

  
	
   

  	
   

  
	
  Article VIII.
  Information

  	
   

  
	
   

  	
   

  
	
  Section 8.1.
  Quarterly Financial Statements

  	
   

  
	
  Section 8.2. Year-End
  Statements

  	
   

  
	
  Section 8.3. Compliance
  Certificate; Other Reports

  	
   

  
	
  Section 8.4. Other
  Information

  	
   

  
	
  Section 8.5. Electronic
  Delivery

  	
   

  
	
   

  	
   

  
	
  Article IX.
  Negative Covenants

  	
   

  
	
   

  	
   

  
	
  Section 9.1. Financial
  Covenants

  	
   

  
	
  Section 9.2. Restricted Payments

  	
   

  
	
  Section 9.3. Indebtedness

  	
   

  
	
  Section 9.4. Certain
  Permitted Investments

  	
   

  
	
  Section 9.5. Investments
  Generally

  	
   

  
	
  Section 9.6. Liens; Negative
  Pledges; Other Matters

  	
   

  
	
  Section 9.7. Merger, Consolidation,
  Sales of Assets and Other Arrangements

  	
   

  
	
  Section 9.8. Fiscal Year

  	
   

  
	
  Section 9.9. Modifications to
  Material Contracts

  	
   

  
	
  Section 9.10.
  Modifications of Organizational Documents

  	
   

  

 

ii

 

	
  Section 9.11.
  Transactions with Affiliates

  	
   

  
	
  Section 9.12.
  ERISA Exemptions

  	
   

  
	
   

  	
   

  
	
  Article X. Default

  	
   

  
	
   

  	
   

  
	
  Section 10.1. Events of
  Default

  	
   

  
	
  Section 10.2. Remedies Upon
  Event of Default

  	
   

  
	
  Section 10.3. Allocation of
  Proceeds

  	
   

  
	
  Section 10.4. Collateral
  Account

  	
   

  
	
  Section 10.5. Performance by
  Agent

  	
   

  
	
  Section 10.6. Rights
  Cumulative

  	
   

  
	
  Section 10.7. Rescission of
  Acceleration by Requisite Lenders

  	
   

  
	
   

  	
   

  
	
  Article XI. The Agent

  	
   

  
	
   

  	
   

  
	
  Section 11.1. Authorization
  and Action

  	
   

  
	
  Section 11.2. Agent’s
  Reliance, Etc.

  	
   

  
	
  Section 11.3. Notice of
  Defaults

  	
   

  
	
  Section 11.4. Wachovia as
  Lender

  	
   

  
	
  Section 11.5. Approvals of
  Lenders

  	
   

  
	
  Section 11.6. Lender Credit
  Decision, Etc.

  	
   

  
	
  Section 11.7.
  Indemnification of Agent

  	
   

  
	
  Section 11.8. Successor
  Agent

  	
   

  
	
  Section 11.9. Titled Agents

  	
   

  
	
   

  	
   

  
	
  Article XII.
  Miscellaneous

  	
   

  
	
   

  	
   

  
	
  Section 12.1. Notices

  	
   

  
	
  Section 12.2. Expenses

  	
   

  
	
  Section 12.3. Setoff

  	
   

  
	
  Section 12.4. Litigation;
  Jurisdiction; Other Matters; Waivers

  	
   

  
	
  Section 12.5. Successors and
  Assigns

  	
   

  
	
  Section 12.6. Amendments

  	
   

  
	
  Section 12.7. Nonliability
  of Agent and Lenders

  	
   

  
	
  Section 12.8.
  Confidentiality

  	
   

  
	
  Section 12.9. Indemnification

  	
   

  
	
  Section 12.10.
  Termination; Survival

  	
   

  
	
  Section 12.11. Severability
  of Provisions

  	
   

  
	
  Section 12.12. GOVERNING
  LAW

  	
   

  
	
  Section 12.13. Patriot Act

  	
   

  
	
  Section 12.14. Counterparts

  	
   

  
	
  Section 12.15. Obligations
  with Respect to Loan Parties

  	
   

  
	
  Section 12.16. Limitation
  of Liability

  	
   

  
	
  Section 12.17. Entire
  Agreement

  	
   

  
	
  Section 12.18. Construction

  	
   

  
	
  Section 12.19. New York
  Mortgages

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 1.1.(A)

  	
  List of Loan
  Parties

  	
   

  
	
  SCHEDULE 1.1.(B)

  	
  List of New York
  Mortgages

  	
   

  

 

iii

 

	
  SCHEDULE 6.1.(b)

  	
  Ownership
  Structure

  	
   

  
	
  SCHEDULE 6.1.(f)

  	
  Title to
  Properties; Liens

  	
   

  
	
  SCHEDULE 6.1.(g)

  	
  Indebtedness and
  Guaranties

  	
   

  
	
  SCHEDULE 6.1.(h)

  	
  Material
  Contracts

  	
   

  
	
  SCHEDULE 6.1.(i)

  	
  Litigation

  	
   

  
	
  SCHEDULE 6.1.(y)

  	
  Eligible and
  Identified Assets

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  Form of Assignment and Acceptance Agreement

  	
   

  
	
  EXHIBIT B

  	
  Form of Designation Agreement

  	
   

  
	
  EXHIBIT C

  	
  Form of Notice of Borrowing

  	
   

  
	
  EXHIBIT D

  	
  Form of Notice of Continuation

  	
   

  
	
  EXHIBIT E

  	
  Form of Notice of Conversion

  	
   

  
	
  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 Revolving Note

  	
   

  
	
  EXHIBIT L

  	
  Form of Bid Rate Note

  	
   

  
	
  EXHIBIT M

  	
  Form of Opinion of Counsel

  	
   

  
	
  EXHIBIT N

  	
  Form of Compliance Certificate

  	
   

  
	
  EXHIBIT O

  	
  Form of Guaranty

  	
   

  

 

iv

 

EXHIBIT A

 

FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT

 

THIS
ASSIGNMENT AND ACCEPTANCE AGREEMENT dated as of                       ,
200   (the “Agreement”) by and among                                                   
(the “Assignor”),                                                   
(the “Assignee”), and WACHOVIA BANK, NATIONAL
ASSOCIATION, as Agent (the “Agent”).

 

WHEREAS,
the Assignor is a Lender under that certain Credit Agreement dated as of September 29, 2005 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
by and among SL Green Operating Partnership,
L.P. (the “Borrower”), the financial institutions party thereto and
their assignees under Section 12.5. thereof (the “Lenders”), the Agent,
and the other parties thereto;

 

WHEREAS,
the Assignor desires to assign to the Assignee, among other things, all or a
portion of the Assignor’s Commitment under the Credit Agreement, all on the
terms and conditions set forth herein; and

 

WHEREAS,
the Agent consents to such assignment on the terms and conditions set forth
herein;

 

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

 

Section 1.  Assignment.

 

(a)           Subject
to the terms and conditions of this Agreement and in consideration of the
payment to be made by the Assignee to the Assignor pursuant to Section 2
of this Agreement, effective as of                         ,
200   (the “Assignment Date”), the Assignor hereby irrevocably sells,
transfers and assigns to the Assignee, without recourse, a $                    
interest (such interest being the “Assigned Commitment”) in and to the Assignor’s
Commitment and all of the other rights and obligations of the Assignor under
the Credit Agreement, the Assignor’s Revolving Note and the other Loan
Documents (representing             %
in respect of the aggregate amount of all Lenders’ Commitments), including
without limitation, a principal amount of outstanding Revolving Loans equal to
$                  
and all voting rights of the Assignor associated with the Assigned Commitment,
all rights to receive interest on such amount of Revolving Loans and all
facility and other Fees with respect to the Assigned Commitment and other
rights of the Assignor under the Credit Agreement and the other Loan Documents
with respect to the Assigned Commitment. 
The Assignee, subject to the terms and conditions hereof, hereby assumes
all obligations of the Assignor as a Lender with respect to the Assigned
Commitment, which obligations shall include, but shall not be limited to, the
obligation to make Revolving Loans to the Borrower with respect to the Assigned
Commitment, the obligation to pay the Agent amounts due in respect of draws
under Letters of Credit as required under Section 2.4.(i) of the
Credit Agreement and the obligation to indemnify the Agent as provided in the
Credit Agreement (the foregoing enumerated obligations, together with all other
similar

 

A-1

 

obligations more
particularly set forth in the Credit Agreement and the other Loan Documents,
collectively, the “Assigned Obligations”). 
[In addition, the Assignor hereby irrevocably sells, transfers and
assigns to the Assignee, without recourse, a $                        
interest in and to the Assignor’s Bid Rate Note, including without limitation,
a principal amount of outstanding Bid Rate Loans owing to the Assignor in an
aggregate amount equal to $                    ,
all rights to receive interest on such amount of Bid Rate Loans and other
rights of the Assignor under the Credit Agreement and the other Loan Documents
with respect to such Bid Rate Loans, all as if the Assignee had originally made
such amount of Bid Rate Loans to the Borrower. The obligations assigned
pursuant to the immediately preceding sentence shall constitute Assigned
Obligations hereunder.]  The Assignor
shall have no further duties or obligations with respect to, and shall have no
further interest in, the Assigned Obligations or the Assigned Commitment from
and after the Assignment Date.

 

(b)           The
assignment by the Assignor to the Assignee hereunder is without recourse to the
Assignor.  The Assignee makes and
confirms to the Agent, the Assignor, and the other Lenders all of the
representations, warranties and covenants of a Lender under Article XI. of
the Credit Agreement.  Not in limitation
of the foregoing, the Assignee acknowledges and agrees that, except as set
forth in Section 4 below, the Assignor is making no representations or
warranties with respect to, and the Assignee hereby releases and discharges the
Assignor for any responsibility or liability for: (i) the present or
future solvency or financial condition of the Borrower, any Subsidiary or any
other Loan Party, (ii) any representations, warranties, statements or
information made or furnished by the Borrower, any Subsidiary or any other Loan
Party in connection with the Credit Agreement or otherwise, (iii) the
validity, efficacy, sufficiency, or enforceability of the Credit Agreement, any
other Loan Document or any other document or instrument executed in connection
therewith, or the collectibility of the Assigned Obligations, (iv) the
perfection, priority or validity of any Lien with respect to any collateral at
any time securing the Obligations or the Assigned Obligations under the Notes
or the Credit Agreement and (v) the performance or failure to perform by
the Borrower or any other Loan Party of any obligation under the Credit
Agreement or any other Loan Document to which it is a party.  Further, the Assignee acknowledges that it
has, independently and without reliance upon the Agent, or any affiliate or
subsidiary thereof, the Assignor or any other Lender and based on the financial
statements supplied by the Borrower and such other documents and information as
it has deemed appropriate, made its own credit and legal analysis and decision
to become a Lender under the Credit Agreement. 
The Assignee also acknowledges that it will, independently and without
reliance upon the Agent, the Assignor or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Credit
Agreement or any other Loan Documents or pursuant to any other obligation.  Except as expressly provided in the Credit
Agreement, the Agent shall have no duty or responsibility whatsoever, either
initially or on a continuing basis, to provide the Assignee with any credit or
other information with respect to the Borrower or any other Loan Party or to
notify the Assignee of any Default or Event of Default.  The Assignee has not relied on the Agent as
to any legal or factual matter in connection therewith or in connection with
the transactions contemplated thereunder.

 

A-2

 

Section 2.  Payment by Assignee.  In consideration of the assignment made
pursuant to Section 1 of this Agreement, the Assignee agrees to pay to the
Assignor on the Assignment Date, such amount as they may agree.

 

Section 3.  Payments by Assignor.  The Assignor agrees to pay to the Agent on
the Assignment Date the administration fee, if any, payable under the
applicable provisions of the Credit Agreement.

 

Section 4.  Representations and Warranties of Assignor.  The Assignor hereby represents and warrants
to the Assignee that (a) as of the Assignment Date (i) the Assignor
is a Lender under the Credit Agreement having a Commitment under the Credit
Agreement [and the outstanding principal balance of Bid Rate Loans owing to the
Assignor] (without reduction by any assignments thereof which have not yet
become effective), equal to $                        
[and $                    ,
respectively], and that the Assignor is not in default of its obligations under
the Credit Agreement; and (ii) the outstanding balance of Revolving Loans
owing to the Assignor (without reduction by any assignments thereof which have
not yet become effective) is $                        ;
and (b) it is the legal and beneficial owner of the Assigned Commitment
which is free and clear of any adverse claim created by the Assignor.

 

Section 5.  Representations, Warranties and Agreements
of Assignee.  The Assignee (a) represents
and warrants that it is (i) legally authorized to enter into this
Agreement, (ii) an “accredited investor” (as such term is used in
Regulation D of the Securities Act) and (iii) an Eligible Assignee; (b) confirms
that it has received a copy of the Credit Agreement, together with copies of
the most recent financial statements delivered in connection therewith or
pursuant thereto and such other documents and information (including without
limitation the Loan Documents) as it has deemed appropriate to make its own
credit analysis and decision to enter into this Agreement; (c) appoints
and authorizes the Agent to take such action as contractual representative on
its behalf and to exercise such powers under the Loan Documents as are
delegated to the Agent by the terms thereof together with such powers as are
reasonably incidental thereto; and (d) agrees that, if not already a
Lender and to the extent of the Assigned Commitment, it will become a party to
and shall be bound by the Credit Agreement and the other Loan Documents to
which the other Lenders are a party on the Assignment Date and will perform in
accordance therewith all of the obligations which are required to be performed
by it as a Lender with respect to the Assigned Commitment.

 

Section 6.  Recording and Acknowledgment by the Agent.  Following the execution of this Agreement,
the Assignor will deliver to the Agent (a) a duly executed copy of this
Agreement for acknowledgment and recording by the Agent and (b) the
Assignor’s Revolving Note [and Bid Rate Note]. 
Upon such acknowledgment and recording, from and after the Assignment
Date, the Agent shall make all payments in respect of the interest assigned
hereby (including payments of principal, interest, Fees and other amounts) to
the Assignee.  The Assignor and Assignee
shall make all appropriate adjustments in payments under the Credit Agreement
for periods prior to the Assignment Date directly between themselves.

 

Section 7.  Addresses.  The Assignee specifies as its address for
notices and its Lending Office for all Loans, the offices set forth on Schedule 1
attached hereto.

 

A-3

 

Section 8.  Payment Instructions.  All payments to be made to the Assignee under
this Agreement by the Assignor, and all payments to be made to the Assignee
under the Credit Agreement, shall be made as provided in the Credit Agreement
in accordance with the instructions set forth on Schedule 1 attached
hereto or as the Assignee may otherwise notify the Agent.

 

Section 9.  Effectiveness of Assignment.  This Agreement, and the assignment and
assumption contemplated herein, shall not be effective until (a) this
Agreement is executed and delivered by each of the Assignor, the Assignee, the
Agent, and if required under Section 12.5.(b) of the Credit
Agreement, the Borrower, and (b) the payment to the Assignor of the
amounts, if any, owing by the Assignee pursuant to Section 2 hereof and (c) the
payment to the Agent of the amounts, if any, owing by the Assignor pursuant to Section 3
hereof.  Upon recording and
acknowledgment of this Agreement by the Agent, from and after the Assignment
Date, (i) the Assignee shall be a party to the Credit Agreement with
respect to the Assigned Commitment and have the rights and obligations of a
Lender thereunder to the extent of the Assigned Commitment and (ii) the
Assignor shall relinquish its rights (except as otherwise provided in Section 12.10.
of the Credit Agreement) and be released from its obligations under the Credit
Agreement with respect to the Assigned Commitment; provided, however, that if
the Assignor does not assign its entire interest under the Loan Documents, it
shall remain a Lender entitled to all of the benefits and subject to all of the
obligations thereunder with respect to its Commitment.

 

Section 10.  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

Section 11.
Counterparts.  This Agreement may
be executed in any number of counterparts each of which, when taken together,
shall constitute one and the same agreement.

 

Section 12.  Headings.  Section headings have been inserted
herein for convenience only and shall not be construed to be a part hereof.

 

Section 13.  Amendments; Waivers.  This Agreement may not be amended, changed,
waived or modified except by a writing executed by the Assignee and the
Assignor; provided, however, any amendment, waiver or consent which shall
affect the rights or duties of the Agent under this Agreement shall not be
effective unless signed by the Agent.

 

Section 14.  Entire Agreement.  This Agreement embodies the entire agreement
between the Assignor and the Assignee with respect to the subject matter hereof
and supersedes all other prior arrangements and understandings relating to the
subject matter hereof.

 

Section 15.  Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
permitted assigns.

 

A-4

 

Section 16.  Definitions.  Terms not otherwise defined herein are used
herein with the respective meanings given them in the Credit Agreement.

 

[Include
this Section only if Borrower’s consent is required under Section 12.5.(b) Section 17.  Agreements of the Borrower.  The Borrower hereby agrees that the Assignee
shall be a Lender under the Credit Agreement having a Commitment equal to the
Assigned Commitment.  The Borrower agrees
that the Assignee shall have all of the rights and remedies of a Lender under
the Credit Agreement and the other Loan Documents, including, but not limited
to, the right of a Lender to receive payments of principal and interest with
respect to the Assigned Obligations, and to the Revolving Loans made by the
Lenders after the date hereof and to receive the commitment and other Fees
payable to the Lenders as provided in the Credit Agreement.  Further, the Assignee shall be entitled to
the indemnification provisions from the Borrower in favor of the Lenders as
provided in the Credit Agreement and the other Loan Documents.  The Borrower further agrees, upon the execution
and delivery of this Agreement, to execute in favor of the Assignee, and if
applicable the Assignor, Notes as required by Section 12.5.(b) of the
Credit Agreement.  Upon receipt by the
Assignor of the amounts due the Assignor under Section 2, the Assignor
agrees to surrender to the Borrower such Assignor’s Notes.]

 

[Signatures on Following Pages]

 

A-5

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Assignment and
Acceptance Agreement as of the date and year first written above.

 

	
   

  	
  ASSIGNOR:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF
  ASSIGNOR]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF
  ASSIGNEE]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Accepted as of
  the date first written above.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AGENT:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WACHOVIA BANK, NATIONAL

  ASSOCIATION, as Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Signatures Continued on Following Page]

  
										

 

A-6

 

	
  [Include signature of the Borrower only if
  required

  under Section 12.5.(d) of the Credit Agreement]

  	
   

  
	
  Agreed and consented to as of the

  date first written above.

  	
   

  
	
   

  	
   

  
	
  BORROWER:

  	
   

  
	
   

  	
   

  
	
  SL GREEN
  OPERATING PARTNERSHIP, L.P.

  	
   

  
	
   

  	
   

  
	
  By:    SL Green Realty Corp., its sole General
  Partner

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
						

 

A-7

 

SCHEDULE 1

 

Information Concerning the Assignee

 

 

	
   

  	
  Notice Address:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone No.:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telecopy No.:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Lending Office:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone No.:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telecopy No.:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Payment
  Instructions:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
							

 

A-8

 

EXHIBIT B

 

FORM OF DESIGNATION AGREEMENT

 

THIS DESIGNATION
AGREEMENT dated as of                       ,
200     (the “Agreement”) by and among                                                   
(the “Lender”),                                                   
(the “Designated Lender”) and Wachovia Bank,
National Association, as Agent (the “Agent”).

 

WHEREAS,
the Lender is a Lender under that certain Credit Agreement dated as of September 29, 2005 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
by and among SL Green Operating Partnership,
L.P. (the “Borrower”), the financial institutions party thereto and
their assignees under Section 12.5. thereof (the “Lenders”), the Agent,
and the other parties thereto;

 

WHEREAS,
pursuant to Section 12.5.(e) of the Credit Agreement, the Lender
desires to designate the Designated Lender as its “Designated Lender” under and
as defined in the Credit Agreement; and

 

WHEREAS,
the Agent consents to such designation on the terms and conditions set forth
herein.

 

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

 

Section 1.  Designation.  Subject to the terms and conditions of this
Agreement, the Lender hereby designates the Designated Lender, and the
Designated Lender hereby accepts such designation, to have a right to make Bid
Rate Loans on behalf of the Lender pursuant to Section 2.2. of the Credit
Agreement.  Any assignment by the Lender
to the Designated Lender of rights to make a Bid Rate Loan shall only be
effective at the time such Bid Rate Loan is funded by the Designated Lender.  The Designated Lender, subject to the terms
and conditions hereof, hereby agrees to make such accepted Bid Rate Loans and
to perform such other obligations as may be required of it as a Designated
Lender under the Credit Agreement.

 

Section 2.  Lender Not Discharged.  Notwithstanding the designation of the
Designated Lender hereunder, the Lender shall be and remain obligated to the
Borrower, the Agent and the Lenders for each and every of the obligations of
the Lender and the Designated Lender with respect to the Credit Agreement and
the other Loan Documents, including, without limitation, any indemnification
obligations under Section 11.7. of the Credit Agreement and any sums
otherwise payable to the Borrower or the Agent by the Designated Lender.

 

Section 3.  No Representations by Lender.  The Lender makes no representation or
warranty and, except as set forth in Section 8 below, assumes no
responsibility pursuant to this Agreement with respect to (a) any
statements, warranties or representations made in or in connection with any
Loan Document or the execution, legality, validity, enforceability,

 

B-1

 

genuineness, sufficiency
or value of any Loan Document or any other instrument and document furnished
pursuant thereto and (b) the financial condition of the Borrower, any
Subsidiary or any other Loan Party or the performance or observance by the
Borrower or any other Loan Party of any of its respective obligations under any
Loan Document to which it is a party or any other instrument or document
furnished pursuant thereto.

 

Section 4.  Representations and Covenants of
Designated Lender.  The Designated
Lender makes and confirms to the Agent, the Lender, and the other Lenders all
of the representations, warranties and covenants of a Lender under Article XI.
of the Credit Agreement.  Not in
limitation of the foregoing, the Designated Lender (a) represents and
warrants that it (i) is legally authorized to enter into this Agreement; (ii) is
an “accredited investor” (as such term is used in Regulation D of the
Securities Act) and (iii) meets the requirements of a “Designated Lender”
contained in the definition of such term contained in the Credit Agreement; (b) confirms
that it has received a copy of the Credit Agreement, together with copies of
the most recent financial statements referred to therein or delivered pursuant
thereto and such other documents and information (including without limitation
the Loan Documents) as it has deemed appropriate to make its own credit analysis
and decision to enter into this Agreement; (c)  confirms that it has,
independently and without reliance upon the Agent, or any affiliate thereof,
the Lender or any other Lender and based on such financial statements and such
other documents and information, made its own credit and legal analysis and
decision to become a Designated Lender under the Credit Agreement; (d) appoints
and authorizes the Agent to take such action as contractual representative on
its behalf and to exercise such powers under the Loan Documents as are
delegated to the Agent by the terms thereof together with such powers as are
reasonably incidental thereto; and (e) agrees that it will become a party
to and shall be bound by the Credit Agreement, the other Loan Documents to which
the other Lenders are a party on the Effective Date (as defined below) and will
perform in accordance therewith all of the obligations which are required to be
performed by it as a Designated Lender. 
The Designated Lender also acknowledges that it will, independently and
without reliance upon the Agent, the Lender or any other Lender and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
the Credit Agreement or any Note or pursuant to any other obligation.  The Designated Lender acknowledges and agrees
that except as expressly required under the Credit Agreement, the Agent shall
have no duty or responsibility whatsoever, either initially or on a continuing
basis, to provide the Designated Lender with any credit or other information
with respect to the Borrower, any Subsidiary or any other Loan Party or to
notify the Designated Lender of any Default or Event of Default.

 

Section 5.  Appointment of Lender as Attorney-In-Fact.  The Designated Lender hereby appoints the
Lender as the Designated Lender’s agent and attorney-in-fact, and grants to the
Lender an irrevocable power of attorney, to receive any and all payments to be
made for the benefit of the Designated Lender under the Credit Agreement, to
deliver and receive all notices and other communications under the Credit
Agreement and other Loan Documents and to exercise on the Designated Lender’s
behalf all rights to vote and to grant and make approvals, waivers, consents of
amendments to or under the Credit Agreement or other Loan Documents.  Any document executed by the Lender on the
Designated Lender’s behalf in connection with the Credit Agreement or other
Loan Documents shall be binding on the Designated Lender.  The

 

B-2

 

Borrower, the Agent and
each of the Lenders may rely on and are beneficiaries of the preceding
provisions.

 

Section 6.  Acceptance by the Agent.  Following the execution of this Agreement by
the Lender and the Designated Lender, the Lender will (i) deliver to the
Agent a duly executed original of this Agreement for acceptance by the Agent
and (ii) pay to the Agent the fee, if any, payable under the applicable
provisions of the Credit Agreement whereupon this Agreement shall become
effective as of the date of such acceptance or such other date as may be
specified on the signature page hereof (the “Effective Date”).

 

Section 7.  Effect of Designation.  Upon such acceptance and recording by the
Agent, as of the Effective Date, the Designated Lender shall be a party to the
Credit Agreement with a right to make Bid Rate Loans as a Lender pursuant to Section 2.2.
of the Credit Agreement and the rights and obligations of a Lender related thereto;
provided, however, that the Designated Lender shall not be required to make
payments with respect to such obligations except to the extent of excess cash
flow of the Designated Lender which is not otherwise required to repay
obligations of the Designated Lender which are then due and payable.  Notwithstanding the foregoing, the Lender, as
agent for the Designated Lender, shall be and remain obligated to the Borrower,
the Agent and the Lenders for each and every of the obligations of the
Designated Lender and the Lender with respect to the Credit Agreement.

 

Section 8.  Indemnification of Designated Lender.  The Lender unconditionally agrees to pay or
reimburse the Designated Lender and save the Designated Lender harmless against
all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever which
may be imposed or asserted by any of the parties to the Loan Documents against
the Designated Lender, in its capacity as such, in any way relating to or
arising out of this Agreement or any other Loan Documents or any action taken
or omitted by the Designated Lender hereunder or thereunder, provided that the
Lender shall not be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements if the same results from the Designated Lender’s gross negligence
or willful misconduct.

 

Section 9.  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

Section 10.  Counterparts.  This Agreement may be executed in any number
of counterparts each of which, when taken together, shall constitute one and
the same agreement.

 

Section 11.  Headings.  Section headings have been inserted
herein for convenience only and shall not be construed to be a part hereof.

 

Section 12.  Amendments; Waivers.  This Agreement may not be amended, changed,
waived or modified except by a writing executed by all parties hereto.

 

B-3

 

Section 13.  Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
permitted assigns.

 

Section 14.  Definitions.  Terms not otherwise defined herein are used
herein with the respective meanings given them in the Credit Agreement.

 

[Signatures on Following Page]

 

B-4

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Designation
Agreement as of the date and year first written above.

 

	
   

  	
  EFFECTIVE DATE:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LENDER:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF LENDER]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DESIGNATED
  LENDER:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF
  DESIGNATED LENDER]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Accepted as of
  the date first written above.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AGENT:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WACHOVIA BANK, NATIONAL

  ASSOCIATION, as Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
											

 

B-5

 

EXHIBIT C

 

FORM OF NOTICE OF BORROWING

 

                        ,
200  

 

Wachovia
Bank, National Association, as Agent

One Wachovia Center

301 South College Street

Mail Code:  NC0166

Charlotte, North
Carolina  28288-0166

Attention: Rex E. Rudy

 

Ladies and Gentlemen:

 

Reference
is made to that certain Credit Agreement dated as of September 29, 2005 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), by and among SL Green Operating Partnership, L.P. (the “Borrower”),
the financial institutions party thereto and their assignees under Section 12.5.
thereof (the “Lenders”), Wachovia Bank, National
Association, as Agent (the “Agent”), and the other parties thereto.  Capitalized terms used herein, and not
otherwise defined herein, have their respective meanings given them in the
Credit Agreement.

 

1.                                       Pursuant
to Section 2.1.(b) of the Credit Agreement, the Borrower hereby
requests that the Lenders make Revolving Loans to the Borrower in an aggregate
principal amount equal to $                                      .

 

2.                                       The
Borrower requests that such Revolving Loans be made available to the Borrower
on                         ,
200  .

 

3.                                       The
Borrower hereby requests that the requested Revolving Loans all be of the
following Type:

 

[Check one box only]

 

o      Base Rate Loans

 

o      LIBOR Loans, each with an
initial Interest Period for a duration of:

 

	
  [Check one box only]

  	
  o   1 month

  	
   

  	
   

  
	
   

  	
   

  	
  o   2 months

  	
   

  	
   

  
	
   

  	
   

  	
  o   3 months

  	
   

  	
   

  
	
   

  	
   

  	
  o   6 months

  	
   

  	
   

  
	
   

  	
   

  	
  o   7 days (with the approval of the Agent)

  	
   

  	
   

  

 

C-1

 

4.                                       The
proceeds of this borrowing of Revolving Loans will be used for the following
purpose:                                                                                                           

                                                                                                                        .

 

5.                                       The
Borrower requests that the proceeds of this borrowing of Revolving Loans be
made available to the Borrower by                                                         .

 

The Borrower hereby certifies to the Agent and the
Lenders that as of the date hereof and as of the date of the making of the
requested Revolving Loans and after giving effect thereto, (a) no Default
or Event of Default exists or shall exist, and (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 are and shall be true and
correct in all material respects, 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 correct
in all material respects on and as of such earlier date) and except for changes
in factual circumstances not prohibited under the Loan Documents. In addition,
the Borrower certifies to the Agent and the Lenders that all conditions to the
making of the requested Revolving Loans contained in Article V. of the
Credit Agreement will have been satisfied (or waived in accordance with the
applicable provisions of the Loan Documents) at the time such Revolving Loans
are made.

 

If
notice of the requested borrowing of Revolving Loans was previously given by
telephone, this notice is to be considered the written confirmation of such
telephone notice required by Section 2.1.(b) of the Credit Agreement.

 

IN
WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of
Borrowing as of the date first written above.

 

	
   

  	
  SL GREEN
  OPERATING PARTNERSHIP, L.P.

  
	
   

  	
   

  
	
   

  	
  By: SL Green
  Realty Corp., its sole General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

C-2

 

EXHIBIT D

 

FORM OF NOTICE OF CONTINUATION

 

                        ,
200  

 

Wachovia
Bank, National Association, as Agent

One Wachovia Center

301 South College Street

Mail Code:  NC0166

Charlotte, North
Carolina  28288-0166

Attention:  Rex E. Rudy

 

Ladies and Gentlemen:

 

Reference
is made to that certain Credit Agreement dated as of September 29, 2005 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), by and among SL Green Operating Partnership, L.P. (the “Borrower”),
the financial institutions party thereto and their assignees under Section 12.5.
thereof (the “Lenders”), Wachovia Bank, National
Association, as Agent (the “Agent”), and the other parties thereto.  Capitalized terms used herein, and not
otherwise defined herein, have their respective meanings given them in the
Credit Agreement.

 

Pursuant
to Section 2.9. of the Credit Agreement, the Borrower hereby requests a
Continuation of a borrowing of Loans under the Credit Agreement, and in that
connection sets forth below the information relating to such Continuation as
required by such Section of the Credit Agreement:

 

1.                                       The
proposed date of such Continuation is                         ,
200    .

 

2.                                       The
aggregate principal amount of Loans subject to the requested Continuation is $                                                
and was originally borrowed by the Borrower on                         ,
200  .

 

3.                                       The
portion of such principal amount subject to such Continuation is $                                                    .

 

4.                                       The
current Interest Period for each of the Loans subject to such Continuation ends
on                                 ,
200  .

 

5.                                       The
duration of the new Interest Period for each of such Loans or portion thereof
subject to such Continuation is:

 

	
  [Check one box only]

  	
  o   1 month

  	
   

  	
   

  
	
   

  	
   

  	
  o   2 months

  	
   

  	
   

  
	
   

  	
   

  	
  o   3 months

  	
   

  	
   

  

 

D-1

 

	
   

  	
   

  	
  o   6 months

  	
   

  	
   

  
	
   

  	
   

  	
  o   7 days (with the approval of the Agent)

  	
   

  	
   

  

 

The
Borrower hereby certifies to the Agent and the Lenders that as of the date
hereof, as of the proposed date of the requested Continuation, and after giving
effect to such Continuation, no Default or Event of Default exists or will
exist.

 

If
notice of the requested Continuation was given previously by telephone, this
notice is to be considered the written confirmation of such telephone notice
required by Section 2.9. of the Credit Agreement.

 

IN
WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of
Continuation as of the date first written above.

 

 

	
   

  	
  SL GREEN
  OPERATING PARTNERSHIP, L.P.

  
	
   

  	
   

  
	
   

  	
  By: SL Green
  Realty Corp., its sole General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

D-2

 

EXHIBIT E

 

FORM OF NOTICE OF CONVERSION

 

                        ,
200  

 

Wachovia
Bank, National Association, as Agent

One Wachovia Center

301 South College Street

Mail Code:  NC0166

Charlotte, North
Carolina  28288-0166

Attention:  Rex
E. Rudy

 

Ladies and Gentlemen:

 

Reference
is made to that certain Credit Agreement dated as of September 29, 2005 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), by and among SL Green Operating Partnership, L.P. (the “Borrower”),
the financial institutions party thereto and their assignees under Section 12.5.
thereof (the “Lenders”), Wachovia Bank, National
Association, as Agent (the “Agent”), and the other parties thereto.  Capitalized terms used herein, and not
otherwise defined herein, have their respective meanings given them in the
Credit Agreement.

 

Pursuant
to Section 2.10. of the Credit Agreement, the Borrower hereby requests a
Conversion of a borrowing of Loans of one Type into Loans of another Type under
the Credit Agreement, and in that connection sets forth below the information
relating to such Conversion as required by such Section of the Credit
Agreement:

 

1.                                       The
proposed date of such Conversion is                             ,
200  .

 

2.                                       The
Loans to be Converted pursuant hereto are currently:

 

[Check one box only]                   o   Base
Rate Loans

                                          o   LIBOR Loans

 

3.                                       The
aggregate principal amount of Loans subject to the requested Conversion is $                                          
and was originally borrowed by the Borrower on                         ,
200  .

 

4.                                       The
portion of such principal amount subject to such Conversion is $                                      .

 

E-1

 

5.                                       The
amount of such Loans to be so Converted is to be converted into Loans of the
following Type:

 

[Check one box only]

 

o      Base Rate Loans

 

o      LIBOR Loans, each with an
initial Interest Period for a duration of:

 

	
  [Check one box only]

  	
  o   1 month

  	
   

  	
   

  
	
   

  	
   

  	
  o  2 months

  	
   

  	
   

  
	
   

  	
   

  	
  o   3 months

  	
   

  	
   

  
	
   

  	
   

  	
  o   6 months

  	
   

  	
   

  
	
   

  	
   

  	
  o   7 days (with the approval of the Agent)

  	
   

  	
   

  

 

The Borrower hereby certifies to the Agent and the
Lenders that as of the date hereof and as of the date of the requested
Conversion and after giving effect thereto, (a) no Default or Event of
Default exists or will exist (provided the certification under this
clause (a) shall not be made in connection with the Conversion of a
Loan into a Base Rate Loan), and (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 are and shall be true and correct in
all material respects, 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 correct in all material
respects on and as of such earlier date) and except for changes in factual
circumstances not prohibited under the Loan Documents.

 

If
notice of the requested Conversion was given previously by telephone, this
notice is to be considered the written confirmation of such telephone notice
required by Section 2.10. of the Credit Agreement.

 

IN
WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of
Conversion as of the date first written above.

 

 

	
   

  	
  SL GREEN
  OPERATING PARTNERSHIP, L.P.

  
	
   

  	
   

  
	
   

  	
  By: SL Green
  Realty Corp., its sole General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

E-2

 

EXHIBIT F

 

FORM OF NOTICE OF SWINGLINE BORROWING

 

                        ,
200    

 

Wachovia
Bank, National Association, as Agent

One Wachovia Center

301 South College Street

Mail Code:  NC0166

Charlotte, North
Carolina  28288-0166

Attention:  Rex
E. Rudy

 

Ladies and Gentlemen:

 

Reference
is made to that certain Credit Agreement dated as of September 29, 2005 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), by and among SL Green Operating Partnership, L.P. (the “Borrower”),
the financial institutions party thereto and their assignees under Section 12.5.
thereof (the “Lenders”), Wachovia Bank, National
Association, as Agent (the “Agent”), and the other parties thereto.  Capitalized terms used herein, and not
otherwise defined herein, have their respective meanings given them in the
Credit Agreement.

 

1.                                       Pursuant
to Section 2.3.(b) of the Credit Agreement, the Borrower hereby
requests that the Swingline Lender make a Swingline Loan to the Borrower in an
amount equal to $                                      .

 

2.                                       The
Borrower requests that such Swingline Loan be made available to the Borrower on
                        ,
200  .

 

3.                                       The
proceeds of this Swingline Loan will be used for the following purpose:                                                                                                                         

                                                                                                                      .

 

4.                                       The
Borrower requests that the proceeds of such Swingline Loan be made available to
the Borrower by                                                             .

 

The
Borrower hereby certifies to the Agent, the Swingline Lender and the Lenders
that as of the date hereof, as of the date of the making of the requested
Swingline Loan, and after making such Swingline Loan, (a) no Default or
Event of Default exists or will exist, and (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 are and shall be true and
correct in all material respects, 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 correct
in all material respects on and as of such earlier date) and except for changes
in factual circumstances not prohibited under the Loan Documents.  In addition, the Borrower

 

F-1

 

certifies to the Agent
and the Lenders that all conditions to the making of the requested Swingline
Loan contained in Article V. of the Credit Agreement will have been
satisfied at the time such Swingline Loan is made.

 

If
notice of the requested borrowing of this Swingline Loan was previously given
by telephone, this notice is to be considered the written confirmation of such
telephone notice required by Section 2.3.(b) of the Credit Agreement.

 

IN
WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of
Swingline Borrowing as of the date first written above.

 

 

	
   

  	
  SL GREEN
  OPERATING PARTNERSHIP, L.P.

  
	
   

  	
   

  
	
   

  	
  By: SL Green
  Realty Corp., its sole General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

F-2

 

EXHIBIT G

 

FORM OF SWINGLINE NOTE

 

	
  $50,000,000

  	
   

  	
  September 29, 2005

  

 

FOR
VALUE RECEIVED, the undersigned, SL Green
Operating Partnership, L.P., a limited partnership formed under the laws
of the State of Delaware (the “Borrower”), hereby promises to pay to the order
of WACHOVIA BANK, NATIONAL ASSOCIATION
(the “Swingline Lender”) at its address at One
Wachovia Center, 301 South College Street, Charlotte, North Carolina  28288, or at such other address as may
be specified in writing by the Swingline Lender to the Borrower, the principal
sum of FIFTY MILLION AND NO/100 DOLLARS ($50,000,000)
(or such lesser amount as shall equal the aggregate unpaid principal amount of
Swingline Loans made by the Swingline Lender to the Borrower under the Credit
Agreement), on the dates and in the principal amounts provided in the Credit
Agreement, and to pay interest on the unpaid principal amount owing hereunder,
at the rates and on the dates provided in the Credit Agreement.

 

The
date and amount of each Swingline Loan, and each payment made on account of the
principal thereof, shall be recorded by the Swingline Lender on its books and,
prior to any transfer of this Note, endorsed by the Swingline Lender on the schedule attached
hereto or any continuation thereof, provided that the failure of the Swingline
Lender to make any such recordation or endorsement shall not affect the
obligations of the Borrower to make a payment when due of any amount owing
under the Credit Agreement or hereunder.

 

This
Note is the Swingline Note referred to in the Credit Agreement dated as of September 29, 2005 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
by and among the Borrower, the financial institutions party thereto and their
assignees under Section 12.5. thereof (the “Lenders”), Wachovia Bank, National Association, as Agent,
and the other parties thereto, and evidences Swingline Loans made to the
Borrower thereunder.  Terms used but not
otherwise defined in this Note have the respective meanings assigned to them in
the Credit Agreement.

 

The
Credit Agreement provides for the acceleration of the maturity of this Note
upon the occurrence of certain events and for prepayments of Swingline Loans
upon the terms and conditions specified therein.

 

Except
as permitted by Section 12.5. of the Credit Agreement, this Note may not
be assigned by the Swingline Lender to any Person.

 

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

 

G-1

 

The
Borrower hereby waives presentment for payment, demand, notice of demand,
notice of non-payment, protest, notice of protest and all other similar
notices.

 

Time
is of the essence for this Note.

 

IN
WITNESS WHEREOF, the undersigned has executed and delivered this Swingline Note
under seal as of the date first written above.

 

 

	
   

  	
  SL GREEN
  OPERATING PARTNERSHIP, L.P.

  
	
   

  	
   

  
	
   

  	
  By: SL Green
  Realty Corp., its sole General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

G-2

 

SCHEDULE OF SWINGLINE LOANS

 

This Note evidences Swingline Loans made under the
within-described Credit Agreement to the Borrower, on the dates and in the
principal amounts set forth below, subject to the payments and prepayments of
principal set forth below:

 

	
  Date of Loan

  	
   

  	
  Principal

  Amount of

  Loan

  	
   

  	
  Amount Paid

  or Prepaid

  	
   

  	
  Unpaid

  Principal

  Amount

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

G-3

 

EXHIBIT H

 

FORM OF BID RATE QUOTE REQUEST

 

                            ,
200      

 

Wachovia
Bank, National Association, as Agent

One Wachovia Center

301 South College Street

Mail Code:  NC0166

Charlotte, North
Carolina  28288-0166

Attention: Rex E. Rudy

 

Ladies and Gentlemen:

 

Reference
is made to that certain Credit Agreement dated as of September 29, 2005 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), by and among SL Green Operating Partnership, L.P. (the “Borrower”),
the financial institutions party thereto and their assignees under Section 12.5.
thereof (the “Lenders”), Wachovia Bank, National
Association, as Agent (the “Agent”), and the other parties thereto.  Capitalized terms used herein, and not
otherwise defined herein, have their respective meanings given them in the
Credit Agreement.

 

1.                                       The
Borrower hereby requests Bid Rate Quotes for the following proposed Bid Rate
Borrowings:

 

	
  Borrowing Date

  	
   

  	
  Amount(1)

  	
   

  	
  Type(2)

  	
   

  	
  Interest Period(3)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
                          ,
  200    

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
               days

  	
   

  

 

2.                                       Borrower’s
Credit Rating, as applicable, as of the date hereof is:

 

S&P                      

Moody’s                             

 

(1)           Minimum
amount of $2,000,000 or larger multiple of $500,000.

(2)           Insert
either Absolute Rate (for Absolute Rate Loan) or LIBOR Margin (for LIBOR Margin
Loan).

(3)           No less
than 7 days and up to 90 days after the borrowing date and must end on a
Business Day.

 

H-1

 

3.                                       The
proceeds of this Bid Rate Borrowing will be used for the following purpose:                                                                                                       

                                                                                                                    .

 

4.                                       After
giving effect to the Bid Rate Borrowing requested herein, the total amount of
Bid Rate Loans outstanding shall be $                            .(1)

 

The Borrower hereby
certifies to the Agent and the Lenders that as of the date hereof, as of the
date of the making of the requested Bid Rate Loans, and after making such Bid
Rate Loans, (a) no Default or Event of Default exists or will exist, and (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 are and
shall be true and correct in all material respects, 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
correct in all material respects on and as of such earlier date) and except for
changes in factual circumstances not prohibited under the Loan Documents.  In addition, the Borrower certifies to the
Agent and the Lenders that all conditions to the making of the requested Bid
Rate Loans contained in Article V. of the Credit Agreement will have been
satisfied at the time such Bid Rate Loans are made.

 

IN WITNESS WHEREOF, the undersigned has duly executed
and delivered this Bid Rate Quote Request as of the date first written above.

 

	
   

  	
  SL GREEN
  OPERATING PARTNERSHIP, L.P.

  
	
   

  	
   

  
	
   

  	
  By: SL Green
  Realty Corp., its sole General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

(1)           Must not
be in excess of one-half of the aggregate amount of all existing Commitments.

 

H-2

 

EXHIBIT I

 

FORM OF BID RATE QUOTE

 

                                ,
        

 

Wachovia
Bank, National Association, as Agent

One Wachovia Center

301 South College Street

Mail Code:  NC0166

Charlotte, North
Carolina  28288-0166

Attention: Rex E. Rudy

Ladies and Gentlemen:

 

Reference
is made to that certain Credit Agreement dated as of September 29, 2005 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), by and among SL Green Operating Partnership, L.P. (the “Borrower”),
the financial institutions party thereto and their assignees under Section 12.5.
thereof (the “Lenders”), Wachovia Bank, National
Association, as Agent (the “Agent”), and the other parties thereto.  Capitalized terms used herein, and not
otherwise defined herein, have their respective meanings given them in the
Credit Agreement.

 

In
response to Borrower’s Bid Rate Quote Request dated                           ,
200  , the undersigned hereby makes the following Bid Rate Quote(s)
on the following terms:

 

1.             Quoting
Lender:                                                        

 

2.                                       Person
to contact at quoting Lender:                                                        

 

3.                                       The
undersigned offers to make Bid Rate Loan(s) in the following principal
amount(s), for the following Interest Period(s) and at the following Bid
Rate(s):

 

	
  Borrowing Date

  	
   

  	
  Amount(1)

  	
   

  	
  Type(2)

  	
   

  	
  Interest Period(3)

  	
   

  	
  Bid Rate

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
                  ,
  200  

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  days

  	
   

  	
   

  	
  %

  
	
                  ,
  200  

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  days

  	
   

  	
   

  	
  %

  
	
                  ,
  200  

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  days

  	
   

  	
   

  	
  %

  

 

(1)           Minimum
amount of $2,000,000 or larger multiple of $500,000.

(2)           Insert
either Absolute Rate (for Absolute Rate Loan) or LIBOR Margin (for LIBOR Margin
Loan).

(3)           No
less than 7 days and up to 90 days after the borrowing date and must end on a
Business Day.

 

I-1

 

The
undersigned understands and agrees that the offer(s) set forth above, subject
to satisfaction of the applicable conditions set forth in the Credit Agreement,
irrevocably obligate[s] the undersigned to make the Bid Rate Loan(s) for which
any offer(s) [is/are] accepted, in whole or in part.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  [Name
  of Quoting Lender]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

I-2

 

EXHIBIT J

 

FORM OF BID RATE QUOTE ACCEPTANCE

 

                                    ,
200  

 

Wachovia
Bank, National Association, as Agent

One Wachovia Center

301 South College Street

Mail Code:  NC0166

Charlotte, North
Carolina  28288-0166

Attention: Rex E. Rudy

 

Ladies and Gentlemen:

 

Reference
is made to that certain Credit Agreement dated as of September 29, 2005 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), by and among SL Green Operating Partnership, L.P. (the “Borrower”),
the financial institutions party thereto and their assignees under Section 12.5.
thereof (the “Lenders”), Wachovia Bank, National
Association, as Agent (the “Agent”), and the other parties thereto.  Capitalized terms used herein, and not
otherwise defined herein, have their respective meanings given them in the
Credit Agreement.

 

Borrower
hereby accepts the following Bid Rate Quotes relating to Bid Rate Loans to be
made to the Borrower on                         ,
200  :

 

	
  Quote Date

  	
   

  	
  Interest Period

  	
   

  	
  Absolute

  Rate/LIBOR

  Margin

  	
   

  	
  Quoting Revolving

  Lender

  	
   

  	
  Amount

  Accepted

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
                   ,
  200   

  	
   

  	
   

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
  $

  	
   

  
	
                   ,
  200   

  	
   

  	
   

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
  $

  	
   

  
	
                   ,
  200   

  	
   

  	
   

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
  $

  	
   

  

 

The
Borrower hereby certifies to the Agent and the Lenders that as of the date
hereof, as of the date of the making of the requested Bid Rate Loans, and after
making such Bid Rate Loans, (a) no Default or Event of Default exists or
will exist, and (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 are and shall be true and correct in all material respects,
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 correct in all material respects on and as of such
earlier date) and except for changes in factual circumstances not prohibited
under the Loan Documents.  In addition,
the Borrower certifies to

 

J-1

 

the Agent and the Lenders
that all conditions to the making of the requested Bid Rate Loans contained in Article V.
of the Credit Agreement will have been satisfied at the time such Bid Rate
Loans are made.

 

IN
WITNESS WHEREOF, the undersigned has duly executed and delivered this Bid Rate
Quote Acceptance as of the date first written above.

 

 

	
   

  	
  SL GREEN
  OPERATING PARTNERSHIP, L.P.

  
	
   

  	
   

  
	
   

  	
  By: SL Green
  Realty Corp., its sole General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

J-2

 

EXHIBIT K

 

FORM OF REVOLVING NOTE

 

	
  $               

  	
                    ,
  200   

  

 

FOR
VALUE RECEIVED, the undersigned, SL GREEN OPERATING PARTNERSHIP, L.P., a
limited partnership formed under the laws of the State of Delaware (the “Borrower”),
hereby promises to pay to the order of                                         
(the “Lender”), in care of Wachovia Bank,
National Association, as Agent (the “Agent”) at Wachovia Bank, National Association, One Wachovia Center, 301 South
College Street, Charlotte, North Carolina 28288, or at such other address as
may be specified in writing by the Agent to the Borrower, the principal sum of                                 
AND         /100 DOLLARS ($                        )
(or such lesser amount as shall equal the aggregate unpaid principal amount of
Revolving Loans made by the Lender to the Borrower under the Credit Agreement
(as herein defined)), on the dates and in the principal amounts provided in the
Credit Agreement, and to pay interest on the unpaid principal amount owing
hereunder, at the rates and on the dates provided in the Credit Agreement.

 

The
date and amount of each Revolving Loan made by the Lender to the Borrower, and
each payment made on account of the principal thereof, shall be recorded by the
Lender on its books and, prior to any transfer of this Note, endorsed by the
Lender on the schedule attached hereto or any continuation thereof,
provided that the failure of the Lender to make any such recordation or
endorsement shall not affect the obligations of the Borrower to make a payment
when due of any amount owing under the Credit Agreement or hereunder.

 

This
Note is one of the Revolving Notes referred to in the Credit Agreement dated as
of September 29, 2005 (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), by and among the Borrower, the financial institutions party
thereto and their assignees under Section 12.5. thereof (the “Lenders”), the
Agent, and the other parties thereto. 
Capitalized terms used herein, and not otherwise defined herein, have
their respective meanings given them in the Credit Agreement.

 

The
Credit Agreement provides for the acceleration of the maturity of this Note upon
the occurrence of certain events and for prepayments of Loans upon the terms
and conditions specified therein.

 

Except
as permitted by Section 12.5.(d) of the Credit Agreement, this Note
may not be assigned by the Lender to any Person.

 

K-1

 

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

 

The
Borrower hereby waives presentment for payment, demand, notice of demand,
notice of non-payment, protest, notice of protest and all other similar
notices.

 

Time
is of the essence for this Note.

 

IN
WITNESS WHEREOF, the undersigned has executed and delivered this Revolving Note
under seal as of the date first written above.

 

	
   

  	
  SL GREEN
  OPERATING PARTNERSHIP, L.P.

  
	
   

  	
   

  
	
   

  	
  By: SL Green
  Realty Corp., its sole General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

K-2

 

SCHEDULE OF
REVOLVING LOANS

 

This Note evidences Revolving Loans made under the
within-described Credit Agreement to the Borrower, on the dates and in the
principal amounts set forth below, subject to the payments and prepayments of
principal set forth below:

 

	
  Date of

  Loan

  	
   

  	
  Principal

  Amount of

  Loan

  	
   

  	
  Amount

  Paid or

  Prepaid

  	
   

  	
  Unpaid

  Principal

  Amount

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

K-3

 

EXHIBIT L

 

FORM OF BID RATE NOTE

 

                        ,
200  

 

FOR
VALUE RECEIVED, the undersigned, SL GREEN OPERATING PARTNERSHIP, L.P., a
limited partnership formed under the laws of the State of Delaware (the “Borrower”),
hereby promises to pay to the order of                                 
(the “Lender”), in care of Wachovia Bank, National
Association, as Agent (the “Agent”) to Wachovia
Bank, National Association, One Wachovia Center, 301 South College
Street, Charlotte, North Carolina 28288, or at such other address as may be
specified in writing by the Agent to the Borrower, the aggregate unpaid
principal amount of Bid Rate Loans made by the Lender to the Borrower under the
Credit Agreement, on the dates and in the principal amounts provided in the
Credit Agreement, and to pay interest on the unpaid principal amount of each
such Bid Rate Loan, at such office at the rates and on the dates provided in
the Credit Agreement.

 

The
date, amount, interest rate and maturity date of each Bid Rate Loan made by the
Lender to the Borrower, and each payment made on account of the principal
thereof, shall be recorded by the Lender on its books and, prior to any
transfer of this Note, endorsed by the Lender on the schedule attached
hereto or any continuation thereof, provided that the failure of the Lender to
make any such recordation or endorsement shall not affect the obligations of
the Borrower to make a payment when due of any amount owing under the Credit
Agreement or hereunder.

 

This Note is one of the
Bid Rate Notes referred to in the Credit Agreement dated as of September 29, 2005 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
by and among the Borrower, the financial institutions party thereto and their
assignees under Section 12.5. thereof (the “Lenders”), the Agent, and the
other parties thereto, and evidences Bid Rate Loans made by the Lender
thereunder.  Terms used but not otherwise
defined in this Note have the respective meanings assigned to them in the
Credit Agreement.

 

The
Credit Agreement provides for the acceleration of the maturity of this Note
upon the occurrence of certain events and for prepayments of Bid Rate Loans
upon the terms and conditions specified therein.

 

Except
as permitted by Section 12.5. of the Credit Agreement, this Note may not
be assigned by the Lender to any other Person.

 

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

 

The
Borrower hereby waives presentment for payment, demand, notice of demand,
notice of non-payment, protest, notice of protest and all other similar
notices.

 

L-1

 

Time
is of the essence for this Note.

 

IN
WITNESS WHEREOF, the undersigned has executed and delivered this Bid Rate Note
under seal as of the date first written above.

 

	
   

  	
  SL GREEN
  OPERATING PARTNERSHIP, L.P.

  
	
   

  	
   

  
	
   

  	
  By: SL Green
  Realty Corp., its sole General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

L-2

 

SCHEDULE OF
BID RATE LOANS

 

This Note evidences Bid Rate Loans made under the
within-described Credit Agreement to the Borrower, on the dates, in the
principal amounts, bearing interest at the rates and maturing on the dates set
forth below, subject to the payments and prepayments of principal set forth
below:

 

	
  Date of

  Loan

  	
   

  	
  Principal

  Amount of

  Loan

  	
   

  	
  Interest

  Rate

  	
   

  	
  Maturity

  Date of

  Loan

  	
   

  	
  Amount

  Paid or

  Prepaid

  	
   

  	
  Unpaid

  Principal

  Amount

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

L-3

 

EXHIBIT M

 

FORM OF OPINION OF COUNSEL

 

[LETTERHEAD OF COUNSEL TO THE LOAN PARTIES]

 

September 29, 2005

 

Wachovia
Bank, National Association, as Agent

301 S. College Street,
NC0172

Charlotte, North
Carolina  20852-4041

 

The Lenders party to the Credit Agreement referred to
below

 

Ladies and Gentlemen:

 

We
have acted as counsel to SL Green Realty Corp., a corporation formed under the
laws of the State of Maryland (the “Parent”), SL
Green Operating Partnership, L.P., a limited partnership formed under
the laws of the State of Delaware (the “Borrower”) in connection with the
negotiation, execution and delivery of that certain Credit Agreement dated as
of September 29, 2005 (the “Credit
Agreement”), by and among the Parent, the Borrower, the financial institutions
party thereto and their assignees under Section 12.5. thereof (the “Lenders”),
Wachovia Bank, National Association, as
Agent (the “Agent”), and the other parties thereto.  We have also acted as counsel to each of the
Guarantors listed on Schedule 1 attached hereto (the “Guarantors”;
together with the Parent, the Borrower, the “Loan Parties”), in connection with
the Guaranty and the other Loan Documents identified below to which they are
party.  Capitalized terms not otherwise
defined herein have the respective meaning given them in the Credit Agreement.

 

In
these capacities, we have reviewed executed copies of the following:

 

(a)           the Credit
Agreement;

 

(b)           the Notes;

 

(c)           the
Guaranty; and

 

(d)           [list
other applicable Loan Documents].

 

The documents and instruments
set forth in items (a) through (d) above are referred to herein as
the “Loan Documents”.

 

M-1

 

In
addition to the foregoing, we have reviewed the [articles or certificate of
incorporation, by-laws, declaration of trust, partnership agreement and limited
liability company operating agreement, as applicable,] of each Loan Party and
certain resolutions of the board of trustees or directors, as applicable, of
each Loan Party (collectively, the “Organizational Documents”) and have also
examined originals or copies, certified or otherwise identified to our
satisfaction, of such documents, corporate records, and other instruments, and
made such other investigations of law and fact, as we have deemed necessary or
advisable for the purposes of rendering this opinion.  In our examination of documents, we assumed
the genuineness of all signatures on documents presented to us as originals
(other than the signatures of officers of the Loan Parties) and the conformity
to originals of documents presented to us as conformed or reproduced copies.

 

Based
upon the foregoing, and subject to all of the qualifications and assumptions
set forth herein, we are of the opinion that:

 

1.             The
Borrower is a limited Partnership, duly organized, validly existing and in good
standing under the laws of the State of Delaware, and has the power to execute
and deliver, and to perform its obligations under, the Loan Documents to which
it is a party, to own and use its assets, and to conduct its business as
presently conducted.  The Borrower is
qualified to transact business as a foreign limited Partnership in the
following jurisdictions:                                                         .

 

2.             The
Parent is a corporation, duly organized, validly existing and in good standing
under the laws of the State of Maryland, and has the power to execute and
deliver on its own behalf and on behalf of the Borrower, and to perform its
obligation under, the Loan Documents to which it is a party, to own and use its
assets, and to conduct its own business as presently conducted.  The Parent is qualified to transact business
as a foreign corporation in the following jurisdictions                             .

 

3.             Each
Guarantor is a [corporation, trust, partnership or limited liability company,
as applicable,] duly organized or formed, validly existing and in good standing
under the laws of the State of its organization or formation and has the power
to execute and deliver, and to perform its obligations under, the Loan
Documents to which it is a party, to own and use its assets, and to conduct its
business as presently conducted.  Each
Guarantor is qualified to transact business as a foreign [corporation, trust, partnership
or limited liability company, as applicable,] in the indicated jurisdictions
set forth on Schedule I attached hereto.

 

4.             Each
Loan Party has duly authorized the execution and delivery of the Loan Documents
to which it is a party and the performance by such Loan Party of all of its obligations
under each such Loan Document.

 

5.             Each
Loan Party has duly executed and delivered the Loan Documents to which it is a
party.

 

6.             Each
Loan Document is a valid and binding obligation of each Loan Party which is a
party thereto, enforceable against each such Loan Party in accordance with its
terms, except as such enforceability may be limited by: (a) applicable
bankruptcy, insolvency, reorganization,

 

M-2

 

moratorium, arrangement
or similar laws relating to or affecting the enforcement of creditors’ rights
generally and (b) the fact that equitable remedies or relief (including,
but not limited to, the remedy of specific performance) are subject to the
discretion of the court before which any such remedies or relief may be sought.

 

7.             The
execution and delivery by each Loan Party of the Loan Documents to which it is
a party do not, and if each Loan Party were now to perform its obligations
under such Loan Documents, such performance would not, result in any:

 

(a)           violation
of such Loan Party’s Organizational Documents;

 

(b)           violation
of any existing federal or state constitution, statute, regulation, rule,
order, or law to which such Loan Party or its assets are subject;

 

(c)           breach or
violation of or default under, any agreement, instrument, indenture or other
document evidencing any indebtedness for money borrowed or any other material
agreement to which, to our knowledge, such Loan Party is bound or under which a
Loan Party or its assets is subject;

 

(d)           creation
or imposition of a lien or security interest in, on or against the assets of
such Loan Party under any agreement, instrument, indenture or other document
evidencing any indebtedness for money borrowed or any other material agreement
to which, to our knowledge, such Loan Party is bound or under which a Loan
Party or its assets is subject; or

 

(e)           violation
of any judicial or administrative decree, writ, judgment or order to which, to
our knowledge, such Loan Party or its assets are subject.

 

8.             The
execution, delivery and performance by each Loan Party of each Loan Document to
which it is a party, and the consummation of the transactions thereunder, do
not and will not require any registration with, consent or approval of, or
notice to, or other action to, with or by, any Governmental Authority of the
United States of America or the States of Delaware, New York or Maryland.

 

9.             To
our knowledge, there are no judgments outstanding against any of the Loan
Parties or affecting any of their respective assets, nor is there any
litigation or other proceeding against any of the Loan Parties or its assets
pending or overtly threatened, could reasonably be expected to have a
materially adverse effect on (a) the business, assets, liabilities,
condition (financial or otherwise), results of operations or business prospects
of the Borrower or any other Loan Party or (b) the validity or
enforceability of any of the Loan Documents.

 

10.           None
of the Loan Parties is, or, after giving effect to any Loan will be, subject to
regulation under the Public Utility Holding Company Act of 1935, the Federal
Power Act or the Investment Company Act of 1940 or to any federal or state
statute or regulation limiting its ability to incur indebtedness for borrowed
money.

 

M-3

 

11.           No
transfer, mortgage, intangible, documentary stamp or similar taxes are payable
by the Agent or the Lenders to the States of Delaware, New York or Maryland or
any political subdivision thereof in connection with (a) the execution and
delivery of the Loan Documents or (b) the creation of the Indebtedness and
the other Obligations evidenced by any of the Loan Documents.

 

12.           Assuming
that Borrower applies the proceeds of the Loans as provided in the Credit
Agreement, the transactions contemplated by the Loan Documents do not violate
the provisions of Regulations T, U or X of the Board of Governors of the
Federal Reserve System of the United States of America.

 

13.           The
consideration to be paid to the Agent and the Lenders for the financial
accommodations to be provided to the Loan Parties pursuant to the Credit
Agreement does not violate any law of the States of Delaware or New York
relating to interest and usury.

 

This
opinion is limited to the laws of the States of Delaware, New York and Maryland
and the federal laws of the United States of America, and we express no
opinions with respect to the law of any other jurisdiction.

 

[Other
Customary Qualifications/Assumptions/Limitations]

 

This
opinion is furnished to you solely for your benefit in connection with the
consummation of the transactions contemplated by the Credit Agreement and may
not be relied upon by any other Person, other than an Assignee of a Lender, or
for any other purpose without our express, prior written consent.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  [NAME OF LAW
  FIRM]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  A Partner

  	
   

  

 

M-4

 

SCHEDULE 1

 

Guarantors

 

	
  Name

  	
   

  	
  Jurisdiction of Formation

  	
   

  	
  Jurisdictions of Foreign

  Qualification

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

M-5

 

EXHIBIT N

 

FORM OF COMPLIANCE CERTIFICATE

 

                              ,
200  

 

Wachovia
Bank, National Association, as Agent

One Wachovia Center

301 South College Street

Mail Code:  NC0166

Charlotte, North
Carolina  28288-0166

 

Each of the Lenders Party to the Credit Agreement
referred to below

 

Ladies and Gentlemen:

 

Reference
is made to that certain Credit Agreement dated as of September 29, 2005 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), by and among SL Green Operating Partnership, L.P. (the “Borrower”),
the financial institutions party thereto and their assignees under Section 12.5.
thereof (the “Lenders”), Wachovia Bank, National
Association, as Agent (the “Agent”) and the other parties thereto.  Capitalized terms used herein, and not
otherwise defined herein, have their respective meanings given them in the
Credit Agreement.

 

Pursuant
to Section 8.3. of the Credit Agreement, the undersigned hereby certifies
to the Agent and the Lenders as follows:

 

(1)           The
undersigned is the                                           
of the Borrower.

 

(2)           The
undersigned has examined the books and records of the Borrower and has
conducted such other examinations and investigations as are reasonably
necessary to provide this Compliance Certificate.

 

(3)           To
the best of the undersigned’s knowledge, information and belief after due
inquiry, no Default or Event of Default exists [if such is
not the case, specify such Default or Event of Default and its nature, when it
occurred and whether it is continuing and the steps being taken by the Borrower
with respect to such event, condition or failure].

 

(4)           The
representations and warranties made or deemed made by the Borrower and the
other Loan Parties in the Loan Documents to which any is a party, are true and
correct in all material respects on and as of the date hereof 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 correct in all material respects on and as of such earlier date) and except
for changes in factual circumstances not prohibited under the Loan Documents.

 

N-1

 

(5)           Attached
hereto as Schedule 1 are reasonably detailed calculations establishing
whether or not the Borrower and its Subsidiaries were in compliance with the
covenants contained in Sections 9.1., 9.2. and 9.4. of the Credit
Agreement.

 

IN
WITNESS WHEREOF, the undersigned has executed this certificate as of the date
first above written.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

N-2

 

Schedule 1

 

[Calculations to be Attached]

 

N-3

 

EXHIBIT O

 

FORM OF GUARANTY

 

THIS
GUARANTY dated as of September 29, 2005,
executed and delivered by each of the undersigned and the other Persons from
time to time party hereto pursuant to the execution and delivery of an
Accession Agreement in the form of Annex I hereto (all of the undersigned,
together with such other Persons each a “Guarantor” and collectively, the “Guarantors”)
in favor of (a) WACHOVIA BANK, NATIONAL
ASSOCIATION, in its capacity as Agent (the “Agent”) for the Lenders
under that certain Credit Agreement dated as of September 29,
2005 (as amended, restated, supplemented or otherwise modified from time
to time, the “Credit Agreement”), by and among SL
Green Operating Partnership, L.P. (the “Borrower”), the financial
institutions party thereto and their assignees under Section 12.5. thereof
(the “Lenders”), the Agent, and the other parties thereto, and (b) the
Lenders and the Swingline Lender.

 

WHEREAS,
pursuant to the Credit Agreement, the Agent and the Lenders have agreed to make
available to the Borrower certain financial accommodations on the terms and
conditions set forth in the Credit Agreement;

 

WHEREAS,
the Borrower and each of the Guarantors, though separate legal entities, are
mutually dependent on each other in the conduct of their respective businesses
as an integrated operation and have determined it to be in their mutual best
interests to obtain financing from the Agent and the Lenders through their
collective efforts;

 

WHEREAS,
each Guarantor acknowledges that it will receive direct and indirect benefits
from the Agent and the Lenders making such financial accommodations available
to the Borrower under the Credit Agreement and, accordingly, each Guarantor is
willing to guarantee the Borrower’s obligations to the Agent and the Lenders on
the terms and conditions contained herein; and

 

WHEREAS,
each Guarantor’s execution and delivery of this Guaranty is a condition to the
Agent and the Lenders making, and continuing to make, such financial
accommodations to the Borrower.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged by each Guarantor, each Guarantor agrees as
follows:

 

Section 1.  Guaranty.  Each Guarantor hereby absolutely, irrevocably
and unconditionally guaranties the due and punctual payment and performance
when due, whether at stated maturity, by acceleration or otherwise, of all of
the following (collectively referred to as the “Guarantied Obligations”): (a) all
indebtedness and obligations owing by the Borrower to any Lender or the Agent
under or in connection with the Credit Agreement and any other Loan Document,
including without limitation, the repayment of all principal of the Loans and
the Reimbursement Obligations, and the payment of all interest, fees, charges,
attorneys’ fees and other amounts

 

O-1

 

payable to any Lender or
the Agent thereunder or in connection therewith; (b) any and all
extensions, renewals, modifications, amendments or substitutions of the
foregoing; (c) all expenses, including, without limitation, reasonable
attorneys’ fees and disbursements, that are incurred by the Lenders and the
Agent in the enforcement of any of the foregoing or any obligation of such
Guarantor hereunder; and (d) all other Obligations.

 

Section 2.  Guaranty of Payment and Not of Collection.  This Guaranty is a guaranty of payment, and
not of collection, and a debt of each Guarantor for its own account.  Accordingly, none of the Lenders or the Agent
shall be obligated or required before enforcing this Guaranty against any
Guarantor: (a)  to pursue any right or remedy any of them may have against
the Borrower, any other Guarantor or any other Person or commence any suit or
other proceeding against the Borrower, any other Guarantor or any other Person
in any court or other tribunal; (b) to make any claim in a liquidation or
bankruptcy of the Borrower, any other Guarantor or any other Person; or (c) to
make demand of the Borrower, any other Guarantor or any other Person or to
enforce or seek to enforce or realize upon any collateral security held by the
Lenders or the Agent which may secure any of the Guarantied Obligations.

 

Section 3.  Guaranty Absolute.  Each Guarantor guarantees that the Guarantied
Obligations will be paid strictly in accordance with the terms of the documents
evidencing the same, regardless of any Applicable Law now or hereafter in
effect in any jurisdiction affecting any of such terms or the rights of the
Agent or the Lenders with respect thereto. 
The liability of each Guarantor under this Guaranty shall be absolute,
irrevocable and unconditional in accordance with its terms and shall remain in
full force and effect without regard to, and shall not be released, suspended,
discharged, terminated or otherwise affected by, any circumstance or occurrence
whatsoever, including without limitation, the following (whether or not such
Guarantor consents thereto or has notice thereof):

 

(a)           (i) any
change in the amount, interest rate or due date or other term of any of the
Guarantied Obligations, (ii) any change in the time, place or manner of
payment of all or any portion of the Guarantied Obligations, (iii) any
amendment or waiver of, or consent to the departure from or other indulgence
with respect to, the Credit Agreement, any other Loan Document, or any other
document or instrument evidencing or relating to any Guarantied Obligations, or
(iv) any waiver, renewal, extension, addition, or supplement to, or deletion
from, or any other action or inaction under or in respect of, the Credit
Agreement, any of the other Loan Documents, or any other documents, instruments
or agreements relating to the Guarantied Obligations or any other instrument or
agreement referred to therein or evidencing any Guarantied Obligations or any
assignment or transfer of any of the foregoing;

 

(b)           any
lack of validity or enforceability of the Credit Agreement, any of the other
Loan Documents, or any other document, instrument or agreement referred to
therein or evidencing any Guarantied Obligations or any assignment or transfer
of any of the foregoing;

 

(c)           any
furnishing to the Agent or the Lenders of any security for the Guarantied
Obligations, or any sale, exchange, release or surrender of, or realization on,
any collateral securing any of the Obligations;

 

O-2

 

(d)           any
settlement or compromise of any of the Guarantied Obligations, any security
therefor, or any liability of any other party with respect to the Guarantied
Obligations, or any subordination of the payment of the Guarantied Obligations
to the payment of any other liability of the Borrower or any other Loan Party;

 

(e)           any
bankruptcy, insolvency, reorganization, composition, adjustment, dissolution,
liquidation or other like proceeding relating to such Guarantor, the Borrower,
any other Loan Party or any other Person, or any action taken with respect to
this Guaranty by any trustee or receiver, or by any court, in any such proceeding;

 

(f)            any
act or failure to act by the Borrower, any other Loan Party or any other Person
which may adversely affect such Guarantor’s subrogation rights, if any, against
the Borrower to recover payments made under this Guaranty;

 

(g)           any
nonperfection or impairment of any security interest or other Lien on any
collateral, if any, securing in any way any of the Obligations;

 

(h)           any
application of sums paid by the Borrower, any other Guarantor or any other
Person with respect to the liabilities of the Borrower to the Agent or the
Lenders, regardless of what liabilities of the Borrower remain unpaid;

 

(i)            any
defect, limitation or insufficiency in the borrowing powers of the Borrower or
in the exercise thereof;

 

(j)            any
defense, set-off, claim or counterclaim (other than indefeasible payment and
performance in full) which may at any time be available to or be asserted by
the Borrower, any other Loan Party or any other Person against the Agent or any
Lender;

 

(k)           any
change in the corporate existence, structure or ownership of the Borrower or
any other Loan Party;

 

(l)            any
statement, representation or warranty made or deemed made by or on behalf of
the Borrower, any Guarantor or any other Loan Party under any Loan Document, or
any amendment hereto or thereto, proves to have been incorrect or misleading in
any respect; or

 

(m)          any
other circumstance which might otherwise constitute a defense available to, or
a discharge of, a Guarantor hereunder (other than indefeasible payment and
performance in full).

 

Section 4.  Action with Respect to Guarantied
Obligations.  The Lenders and the
Agent may, at any time and from time to time, without the consent of, or notice
to, any Guarantor, and without discharging any Guarantor from its obligations
hereunder, take any and all actions described in Section 3 and may
otherwise: (a) amend, modify, alter or supplement the terms of any of the
Guarantied Obligations, including, but not limited to, extending or shortening
the time of payment of any of the Guarantied Obligations or changing the
interest rate that may accrue on any of the Guarantied Obligations; (b) amend,
modify, alter or supplement the Credit Agreement

 

O-3

 

or any other Loan
Document; (c) sell, exchange, release or otherwise deal with all, or any
part, of any collateral securing any of the Obligations; (d) release any
other Loan Party or other Person liable in any manner for the payment or
collection of the Guarantied Obligations; (e) exercise, or refrain from
exercising, any rights against the Borrower, any other Guarantor or any other
Person; and (f) apply any sum, by whomsoever paid or however realized, to
the Guarantied Obligations in such order as the Lenders shall elect.

 

Section 5.  Representations and Warranties.  Each Guarantor hereby makes to the Agent and
the Lenders all of the representations and warranties made by the Borrower with
respect to or in any way relating to such Guarantor in the Credit Agreement and
the other Loan Documents, as if the same were set forth herein in full.

 

Section 6.  Covenants.  Each Guarantor will comply with all covenants
which the Borrower is to cause such Guarantor to comply with under the terms of
the Credit Agreement or any of the other Loan Documents.

 

Section 7.  Waiver.  Each Guarantor, to the fullest extent
permitted by Applicable Law, hereby waives notice of acceptance hereof or any
presentment, demand, protest or notice of any kind, and any other act or thing,
or omission or delay to do any other act or thing, which in any manner or to
any extent might vary the risk of such Guarantor or which otherwise might
operate to discharge such Guarantor from its obligations hereunder.

 

Section 8.  Inability to Accelerate Loan.  If the Agent and/or the Lenders are prevented
under Applicable Law or otherwise from demanding or accelerating payment of any
of the Guarantied Obligations by reason of any automatic stay or otherwise, the
Agent and/or the Lenders shall be entitled to receive from each Guarantor, upon
demand therefor, the sums which otherwise would have been due had such demand
or acceleration occurred.

 

Section 9.  Reinstatement of Guarantied Obligations.  If claim is ever made on the Agent or any
Lender for repayment or recovery of any amount or amounts received in payment
or on account of any of the Guarantied Obligations, and the Agent or such
Lender repays all or part of said amount by reason of (a) any judgment,
decree or order of any court or administrative body of competent jurisdiction,
or (b) any settlement or compromise of any such claim effected by the
Agent or such Lender with any such claimant (including the Borrower or a
trustee in bankruptcy for the Borrower), then and in such event each Guarantor
agrees that any such judgment, decree, order, settlement or compromise shall be
binding on it, notwithstanding any revocation hereof or the cancellation of the
Credit Agreement, any of the other Loan Documents, or any other instrument
evidencing any liability of the Borrower, and such Guarantor shall be and
remain liable to the Agent or such Lender for the amounts so repaid or
recovered to the same extent as if such amount had never originally been paid
to the Agent or such Lender.

 

Section 10.  Subrogation.  Upon the making by any Guarantor of any
payment hereunder for the account of the Borrower, such Guarantor shall be
subrogated to the rights of the payee against the Borrower; provided, however,
that such Guarantor shall not enforce any right or receive any payment by way
of subrogation or otherwise take any action in respect of any other claim or
cause of action such Guarantor may have against the Borrower arising by reason
of any

 

O-4

 

payment or performance by
such Guarantor pursuant to this Guaranty, unless and until all of the
Guarantied Obligations have been indefeasibly paid and performed in full.  If any amount shall be paid to such Guarantor
on account of or in respect of such subrogation rights or other claims or
causes of action, such Guarantor shall hold such amount in trust for the
benefit of the Agent and the Lenders and shall forthwith pay such amount to the
Agent to be credited and applied against the Guarantied Obligations, whether
matured or unmatured, in accordance with the terms of the Credit Agreement or to
be held by the Agent as collateral security for any Guarantied Obligations
existing.

 

Section 11.  Payments Free and Clear.  All sums payable by each Guarantor hereunder,
whether of principal, interest, Fees, expenses, premiums or otherwise, shall be
paid in full, without set-off or counterclaim or any deduction or withholding
whatsoever (including any Taxes), and if any Guarantor is required by
Applicable Law or by a Governmental Authority to make any such deduction or
withholding, such Guarantor shall pay to the Agent and the Lenders such
additional amount as will result in the receipt by the Agent and the Lenders of
the full amount payable hereunder had such deduction or withholding not
occurred or been required.

 

Section 12.  Set-off.  In addition to any rights now or hereafter
granted under any of the other Loan Documents or Applicable Law and not by way
of limitation of any such rights, each Guarantor hereby authorizes the Agent,
each Lender and any of their respective affiliates, at any time while an Event
of Default exists, without any prior notice to such Guarantor or to any other
Person, any such notice being hereby expressly waived, but in the case of a
Lender or an affiliate of a Lender 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 such Guarantor against and on account of any of
the Guarantied Obligations, although such obligations shall be contingent or
unmatured.

 

Section 13.  Subordination.  Each Guarantor hereby expressly covenants and
agrees for the benefit of the Agent and the Lenders that all obligations and
liabilities of the Borrower to such Guarantor of whatever description,
including without limitation, all intercompany receivables of such Guarantor
from the Borrower (collectively, the “Junior Claims”) shall be subordinate and
junior in right of payment to all Guarantied Obligations.  If an Event of Default shall exist, then no
Guarantor shall accept any direct or indirect payment (in cash, property or
securities, by setoff or otherwise) from the Borrower on account of or in any
manner in respect of any Junior Claim until all of the Guarantied Obligations
have been indefeasibly paid in full.

 

Section 14.  Avoidance Provisions.  It is the intent of each Guarantor, the Agent
and the Lenders that in any Proceeding, such Guarantor’s maximum obligation
hereunder shall equal, but not exceed, the maximum amount which would not
otherwise cause the obligations of such Guarantor hereunder (or any other
obligations of such Guarantor to the Agent and the Lenders) to be avoidable or
unenforceable against such Guarantor in such Proceeding as a result of
Applicable Law, including without limitation, (a) Section 548 of the
Bankruptcy Code of 1978, as amended (the “Bankruptcy Code”) and (b) any
state fraudulent transfer or fraudulent

 

O-5

 

conveyance act or statute
applied in such Proceeding, whether by virtue of Section 544 of the
Bankruptcy Code or otherwise.  The
Applicable Laws under which the possible avoidance or unenforceability of the
obligations of such Guarantor hereunder (or any other obligations of such
Guarantor to the Agent and the Lenders) shall be determined in any such
Proceeding are referred to as the “Avoidance Provisions”.  Accordingly, to the extent that the
obligations of any Guarantor hereunder would otherwise be subject to avoidance
under the Avoidance Provisions, the maximum Guarantied Obligations for which
such Guarantor shall be liable hereunder shall be reduced to that amount which,
as of the time any of the Guarantied Obligations are deemed to have been
incurred under the Avoidance Provisions, would not cause the obligations of
such Guarantor hereunder (or any other obligations of such Guarantor to the
Agent and the Lenders), to be subject to avoidance under the Avoidance
Provisions.  This Section is
intended solely to preserve the rights of the Agent and the Lenders hereunder
to the maximum extent that would not cause the obligations of any Guarantor
hereunder to be subject to avoidance under the Avoidance Provisions, and no
Guarantor or any other Person shall have any right or claim under this Section as
against the Agent and the Lenders that would not otherwise be available to such
Person under the Avoidance Provisions.

 

Section 15.  Information.  Each Guarantor assumes all responsibility for
being and keeping itself informed of the financial condition of the Borrower
and the other Guarantors, and of all other circumstances bearing upon the risk
of nonpayment of any of the Guarantied Obligations and the nature, scope and
extent of the risks that such Guarantor assumes and incurs hereunder, and
agrees that neither the Agent nor any of the Lenders shall have any duty
whatsoever to advise any Guarantor of information regarding such circumstances
or risks.

 

Section 16.  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

SECTION 17.  WAIVER OF JURY TRIAL.

 

(a)           EACH
PARTY HERETO ACKNOWLEDGES THAT ANY DISPUTE OR CONTROVERSY BETWEEN OR AMONG ANY
GUARANTOR, 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 EACH GUARANTOR
HEREBY WAIVES ITS RIGHT TO A 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 GUARANTY OR ANY
OTHER LOAN DOCUMENT OR BY REASON OF ANY OTHER SUIT, CAUSE OF ACTION OR DISPUTE
WHATSOEVER BETWEEN OR AMONG ANY GUARANTOR, THE AGENT OR ANY OF THE LENDERS OF
ANY KIND OR NATURE RELATING TO ANY OF THE LOAN DOCUMENTS.

 

O-6

 

(b)           EACH OF THE GUARANTORS, THE AGENT
AND EACH LENDER HEREBY AGREES THAT THE FEDERAL DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK AND ANY STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN,
NEW YORK, NEW YORK, SHALL HAVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR
DISPUTES BETWEEN OR AMONG ANY GUARANTOR, THE AGENT OR ANY OF THE LENDERS,
PERTAINING DIRECTLY OR INDIRECTLY TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT
OR TO ANY MATTER ARISING HEREFROM OR THEREFROM. 
EACH GUARANTOR AND EACH OF THE LENDERS EXPRESSLY SUBMIT AND CONSENT IN
ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED IN SUCH
COURTS WITH RESPECT TO SUCH CLAIMS OR DISPUTES. 
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 GUARANTY.

 

Section 18.  Loan Accounts.  The Agent and each Lender may maintain books
and accounts setting forth the amounts of principal, interest and other sums
paid and payable with respect to the Guarantied Obligations, and in the case of
any dispute relating to any of the outstanding amount, payment or receipt of
any of the Guarantied Obligations or otherwise, the entries in such books and
accounts shall be deemed conclusive evidence of the amounts and other matters
set forth herein, absent manifest error. 
The failure of the Agent or any Lender to maintain such books and
accounts shall not in any way relieve or discharge any Guarantor of any of its
obligations hereunder.

 

Section 19.  Waiver of Remedies.  No delay or failure on the part of the Agent
or any Lender in the exercise of any right or remedy it may have against any
Guarantor hereunder or otherwise shall operate as a waiver thereof, and no
single or partial exercise by the Agent or any Lender of any such right or
remedy shall preclude any other or further exercise thereof or the exercise of
any other such right or remedy.

 

Section 20.  Termination.  This Guaranty shall remain in full force and
effect until indefeasible payment in full of the Guarantied Obligations and the
other Obligations and the termination or cancellation of the Credit Agreement in
accordance with its terms.

 

O-7

 

Section 21.  Successors and Assigns.  Each reference herein to the Agent or the
Lenders shall be deemed to include such Person’s respective successors and
assigns (including, but not limited to, any holder of the Guarantied
Obligations) in whose favor the provisions of this Guaranty also shall inure,
and each reference herein to each Guarantor shall be deemed to include such
Guarantor’s successors and assigns, upon whom this Guaranty also shall be
binding.  The Lenders may, in accordance
with the applicable provisions of the Credit Agreement, assign, transfer or
sell any Guarantied Obligation, or grant or sell participations in any Guarantied
Obligations, to any Person without the consent of, or notice to, any Guarantor
and without releasing, discharging or modifying any Guarantor’s obligations
hereunder.  Subject to Section 12.8.
of the Credit Agreement, each Guarantor hereby consents to the delivery by the
Agent or any Lender to any Assignee or Participant (or any prospective Assignee
or Participant) of any financial or other information regarding the Borrower or
any Guarantor.  No Guarantor may assign
or transfer its rights or obligations hereunder to any Person without the prior
written consent of all Lenders and any such assignment or other transfer to
which all of the Lenders have not so consented shall be null and void.

 

Section 22.  JOINT AND SEVERAL OBLIGATIONS.  THE OBLIGATIONS OF THE GUARANTORS HEREUNDER
SHALL BE JOINT AND SEVERAL, AND ACCORDINGLY, EACH GUARANTOR CONFIRMS THAT IT IS
LIABLE FOR THE FULL AMOUNT OF THE “GUARANTIED OBLIGATIONS” AND ALL OF THE
OBLIGATIONS AND LIABILITIES OF EACH OF THE OTHER GUARANTORS HEREUNDER.

 

Section 23.  Amendments.  This Guaranty may not be amended except in
writing signed by the Requisite Lenders (or all of the Lenders if required
under the terms of the Credit Agreement), the Agent and each Guarantor.

 

Section 24.  Payments.  All payments to be made by any Guarantor
pursuant to this Guaranty shall be made in Dollars, in immediately available
funds to the Agent at the Principal Office, not later than 2:00 p.m. on
the date of demand therefor.

 

Section 25.  Notices.  All notices, requests and other
communications hereunder shall be in writing (including facsimile transmission
or similar writing) and shall be given (a) to each Guarantor at its
address set forth below its signature hereto, (b) to the Agent or any
Lender at its respective address for notices provided for in the Credit Agreement,
or (c) as to each such party at such other address as such party shall
designate in a written notice to the other parties.  Each such notice, request or other
communication shall be effective (i) if mailed, when received; (ii) if
telecopied, when transmitted; or (iii) if hand delivered, when delivered;
provided, however, that any notice of a change of address for notices shall not
be effective until received.

 

Section 26.  Severability.  In case any provision of this Guaranty shall
be invalid, illegal or unenforceable in any jurisdiction, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

 

Section 27.  Headings.  Section headings used in this Guaranty
are for convenience only and shall not affect the construction of this
Guaranty.

 

O-8

 

Section 28.  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 each Guarantor 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
a Guarantor in connection with, arising out of, or in any way related to, this
Guaranty or any of the other Loan Documents, or any of the transactions
contemplated by this Guaranty, the Credit Agreement or any of the other Loan
Documents.  Each Guarantor 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 Guaranty, the Credit Agreement or any of
the other Loan Documents, or any of the transactions contemplated by Credit
Agreement or financed thereby.

 

Section 29.  Definitions.  (a) For the purposes of this Guaranty:

 

“Proceeding”
means any of the following: (i) a voluntary or involuntary case concerning
any Guarantor shall be commenced under the Bankruptcy Code of 1978, as amended;
(ii) a custodian (as defined in such Bankruptcy Code or any other
applicable bankruptcy laws) is appointed for, or takes charge of, all or any
substantial part of the property of any Guarantor; (iii) any other
proceeding under any Applicable Law, domestic or foreign, relating to
bankruptcy, insolvency, reorganization, winding-up or composition for
adjustment of debts, whether now or hereafter in effect, is commenced relating
to any Guarantor; (iv) any Guarantor is adjudicated insolvent or bankrupt;
(v) any order of relief or other order approving any such case or
proceeding is entered by a court of competent jurisdiction; (vi) any
Guarantor makes a general assignment for the benefit of creditors; (vii) any
Guarantor shall fail to pay, or shall state that it is unable to pay, or shall
be unable to pay, its debts generally as they become due; (viii) any
Guarantor shall call a meeting of its creditors with a view to arranging a
composition or adjustment of its debts; (ix) any Guarantor shall by any
act or failure to act indicate its consent to, approval of or acquiescence in
any of the foregoing; or (x) any corporate action shall be taken by any
Guarantor for the purpose of effecting any of the foregoing.

 

(b)           Terms
not otherwise defined herein are used herein with the respective meanings given
them in the Credit Agreement.

 

[Signature on Next Page]

 

O-9

 

IN WITNESS WHEREOF, each Guarantor has duly executed
and delivered this Guaranty as of the date and year first written above.

 

	
   

  	
  [GUARANTORS]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  c/o SL Green Operating Partnership, L.P.

  	
   

  
	
   

  	
  420 Lexington
  Avenue

  	
   

  
	
   

  	
  New York, New
  York  10170

  	
   

  
	
   

  	
  Attention:                       

  	
   

  
	
   

  	
  Telecopy Number:

  	
  (      )                    

  	
   

  
	
   

  	
  Telephone
  Number:

  	
  (      )                    

  	
   

  
								

 

O-10

 

ANNEX I

 

FORM OF ACCESSION AGREEMENT

 

THIS
ACCESSION AGREEMENT dated as of                         ,
200    , executed and delivered by                                             ,
a                           
(the “New Guarantor”), in favor of (a) WACHOVIA
BANK, NATIONAL ASSOCIATION, in its capacity as Agent (the “Agent”) for
the Lenders under that certain Credit Agreement dated as of September 29, 2005 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
by and among SL Green Operating Partnership,
L.P. (the “Borrower”), the financial institutions party thereto and
their assignees under Section 12.5. thereof (the “Lenders”), the Agent,
and the other parties thereto, and (b) the Lenders.

 

WHEREAS,
pursuant to the Credit Agreement, the Agent and the Lenders have agreed to make
available to the Borrower certain financial accommodations on the terms and
conditions set forth in the Credit Agreement;

 

WHEREAS,
the Borrower, the New Guarantor, and the existing Guarantors, though separate
legal entities, are mutually dependent on each other in the conduct of their
respective businesses as an integrated operation and have determined it to be
in their mutual best interests to obtain financing from the Agent and the
Lenders through their collective efforts;

 

WHEREAS,
the New Guarantor acknowledges that it will receive direct and indirect
benefits from the Agent and the Lenders making such financial accommodations
available to the Borrower under the Credit Agreement and, accordingly, the New
Guarantor is willing to guarantee the Borrower’s obligations to the Agent and
the Lenders on the terms and conditions contained herein; and

 

WHEREAS,
the New Guarantor’s execution and delivery of this Agreement is a condition to
the Agent and the Lenders continuing to make such financial accommodations to
the Borrower.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged by the New Guarantor, the New Guarantor agrees as
follows:

 

Section 1.  Accession to Guaranty.  The New Guarantor hereby agrees that it is a “Guarantor”
under that certain Guaranty dated as of September 29,
2005 (as amended, supplemented, restated or otherwise modified from time
to time, the “Guaranty”), made by each Subsidiary of the Borrower a party
thereto in favor of the Agent and the Lenders and assumes all obligations of a “Guarantor”
thereunder and agrees to be bound thereby, all as if the New Guarantor had been
an original signatory to the Guaranty. 
Without limiting the generality of the foregoing, the New Guarantor
hereby:

 

(a)           irrevocably
and unconditionally guarantees the due and punctual payment and performance
when due, whether at stated maturity, by acceleration or otherwise, of all
Guarantied Obligations (as defined in the Guaranty);

 

O-11

 

(b)           makes
to the Agent and the Lenders as of the date hereof each of the representations
and warranties contained in Section 5 of the Guaranty and agrees to be
bound by each of the covenants contained in Section 6 of the Guaranty; and

 

(c)           consents
and agrees to each provision set forth in the Guaranty.

 

SECTION 2.  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

Section 3.  Definitions.  Capitalized terms used herein and not
otherwise defined herein shall have their respective defined meanings given
them in the Credit Agreement.

 

 

[Signatures on Next Page]

 

O-12

 

IN WITNESS WHEREOF, the New Guarantor has caused this
Accession Agreement to be duly executed and delivered under seal by its duly
authorized officers as of the date first written above.

 

	
   

  	
  [NEW GUARANTOR]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  c/o SL Green Operating Partnership, L.P.

  	
   

  
	
   

  	
  420 Lexington
  Avenue

  	
   

  
	
   

  	
  New York, New
  York  10170

  	
   

  
	
   

  	
  Attention:                      

  	
   

  
	
   

  	
  Telecopy Number:

  	
  (       )                      

  	
   

  
	
   

  	
  Telephone
  Number:

  	
  (       )                      

  	
   

  
	
   

  	
   

  	
   

  
	
  Accepted:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WACHOVIA BANK, NATIONAL

  ASSOCIATION, as Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
											

 

O-13

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