Document:

Exhibit 4.1

 

$250,000,000

 

CREDIT AGREEMENT

 

by and among

 

CV PROPCO, LLC,

as the Borrower

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

JPMORGAN CHASE BANK, N.A.

and

THE INSTITUTIONS FROM TIME TO TIME PARTY
HERETO,

as Lenders

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as the Administrative Agent for the Secured Parties

 

JPMORGAN CHASE BANK, N.A.,

as Syndication Agent

 

DEUTSCHE BANK SECURITIES INC.

and

J.P. MORGAN SECURITIES INC.,

 

as Joint Lead Arrangers and Joint Book
Running Manager

 

Dated as of February 7, 2008

 

 

TABLE OF
CONTENTS

 

	
   

  	
  Page

  
	
  Article I
  Defined Terms

  	
  1

  
	
   

  	
   

  
	
  1.1

  	
   

  	
  Defined
  terms

  	
  1

  
	
  1.2

  	
   

  	
  Other
  Interpretive Provisions

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  Article II
  Credit Facility

  	
  30

  
	
   

  	
   

  
	
  2.1

  	
   

  	
  Loans;
  Advances to Borrower

  	
  30

  
	
  2.2

  	
   

  	
  Funding of
  Advances

  	
  31

  
	
  2.3

  	
   

  	
  Termination
  of the Commitments; Maturity

  	
  32

  
	
  2.4

  	
   

  	
  Manner of
  Payment of Loans; Evidence of Debt

  	
  32

  
	
  2.5

  	
   

  	
  Repayment
  and Prepayment of Loans

  	
  34

  
	
  2.6

  	
   

  	
  Interest

  	
  35

  
	
  2.7

  	
   

  	
  Presumptions
  of Payment

  	
  36

  
	
  2.8

  	
   

  	
  Pro Rata
  Treatment

  	
  36

  
	
  2.9

  	
   

  	
  Inability to
  Determine Rates

  	
  36

  
	
  2.10

  	
   

  	
  Illegality

  	
  37

  
	
  2.11

  	
   

  	
  Funding

  	
  37

  
	
  2.12

  	
   

  	
  Increased
  Costs

  	
  37

  
	
  2.13

  	
   

  	
  Obligation
  of Lenders to Mitigate; Defaulting Lenders; Replacement of Lenders

  	
  38

  
	
  2.14

  	
   

  	
  Funding
  Indemnification

  	
  40

  
	
  2.15

  	
   

  	
  Taxes

  	
  40

  
	
  2.16

  	
   

  	
  Fees

  	
  42

  
	
  2.17

  	
   

  	
  Credit
  Support

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
  Article III
  Conditions Precedent

  	
  42

  
	
   

  	
   

  
	
  3.1

  	
   

  	
  Conditions
  to Initial Funding of Loans

  	
  42

  
	
  3.2

  	
   

  	
  Outside
  Closing Date

  	
  46

  
	
  3.3

  	
   

  	
  Conditions
  Precedent to Each Subsequent Loan

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
  Article IV
  Representations and Warranties

  	
  51

  
	
   

  	
   

  
	
  4.1

  	
   

  	
  Financial
  Condition

  	
  51

  
	
  4.2

  	
   

  	
  No Material
  Adverse Effect

  	
  51

  
	
  4.3

  	
   

  	
  Compliance
  with Laws

  	
  51

  
	
  4.4

  	
   

  	
  Organization,
  Powers; Authorization; Enforceability

  	
  51

  
	
  4.5

  	
   

  	
  No Conflict

  	
  52

  
	
  4.6

  	
   

  	
  No Material
  Litigation

  	
  52

  
	
  4.7

  	
   

  	
  Taxes

  	
  53

  
	
  4.8

  	
   

  	
  Regulated
  Entities

  	
  53

  
	
  4.9

  	
   

  	
  Borrower
  Parties

  	
  54

  
	
  4.10

  	
   

  	
  Federal
  Reserve Board Regulations

  	
  54

  
								

 

 

	
  4.11

  	
   

  	
  ERISA Compliance

  	
  54

  
	
  4.12

  	
   

  	
  Assets and Liens

  	
  55

  
	
  4.13

  	
   

  	
  Securities Acts

  	
  55

  
	
  4.14

  	
   

  	
  Consents, Etc.

  	
  55

  
	
  4.15

  	
   

  	
  Hazardous Materials

  	
  56

  
	
  4.16

  	
   

  	
  Intellectual Property

  	
  56

  
	
  4.17

  	
   

  	
  Insurance

  	
  57

  
	
  4.18

  	
   

  	
  Full Disclosure

  	
  57

  
	
  4.19

  	
   

  	
  Brokers

  	
  57

  
	
  4.20

  	
   

  	
  No Default

  	
  57

  
	
  4.21

  	
   

  	
  Solvency

  	
  57

  
	
  4.22

  	
   

  	
  Contractual Obligations

  	
  57

  
	
  4.23

  	
   

  	
  Representations Regarding the Mortgaged Property

  	
  57

  
	
  4.24

  	
   

  	
  Use of Proceeds

  	
  58

  
	
  4.25

  	
   

  	
  Single Purpose Entity

  	
  58

  
	
  4.26

  	
   

  	
  Labor

  	
  58

  
	
  4.27

  	
   

  	
  Taxpayer Identification Number

  	
  59

  
	
  4.28

  	
   

  	
  Anti-Terrorism Laws

  	
  59

  
	
  4.29

  	
   

  	
  Property Accounts

  	
  60

  
	
  4.30

  	
   

  	
  Required Interest Rate Contracts

  	
  60

  
	
   

  	
   

  	
   

  	
   

  
	
  Article V Affirmative Covenants

  	
  60

  
	
   

  	
   

  
	
  5.1

  	
   

  	
  Reporting Requirements

  	
  60

  
	
  5.2

  	
   

  	
  Maintenance of Existence and Rights

  	
  62

  
	
  5.3

  	
   

  	
  Compliance with Laws; Forfeiture

  	
  62

  
	
  5.4

  	
   

  	
  Access

  	
  63

  
	
  5.5

  	
   

  	
  Insurance; Casualty; Condemnation; Restoration

  	
  63

  
	
  5.6

  	
   

  	
  Books and Records

  	
  65

  
	
  5.7

  	
   

  	
  Maintenance of Property

  	
  65

  
	
  5.8

  	
   

  	
  Approved Leases

  	
  65

  
	
  5.9

  	
   

  	
  Taxes

  	
  65

  
	
  5.10

  	
   

  	
  Environmental

  	
  66

  
	
  5.11

  	
   

  	
  Title to the Mortgaged Property

  	
  66

  
	
  5.12

  	
   

  	
  Loan Proceeds

  	
  66

  
	
  5.13

  	
   

  	
  Interest Rate Contracts

  	
  66

  
	
  5.14

  	
   

  	
  Single Purpose Entities

  	
  68

  
	
  5.15

  	
   

  	
  Interest Reserve Account

  	
  68

  
	
  5.16

  	
   

  	
  Security Interest in Accounts

  	
  69

  
	
  5.17

  	
   

  	
  Entitlements

  	
  70

  
	
  5.18

  	
   

  	
  Further Assurances

  	
  70

  
	
  5.19

  	
   

  	
  Escrow Deposits

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
  Article VI Negative Covenants

  	
  72

  
	
   

  	
   

  
	
  6.1

  	
   

  	
  Liens

  	
  72

  
	
  6.2

  	
   

  	
  Indebtedness

  	
  72

  

 

ii

 

	
  6.3

  	
   

  	
  Fundamental Change

  	
  72

  
	
  6.4

  	
   

  	
  Disposition

  	
  72

  
	
  6.5

  	
   

  	
  Investments

  	
  75

  
	
  6.6

  	
   

  	
  Transactions with Affiliates

  	
  75

  
	
  6.7

  	
   

  	
  Modifications to Organizational Documents and Other Material
  Agreements

  	
  75

  
	
  6.8

  	
   

  	
  Restricted Payments

  	
  75

  
	
  6.9

  	
   

  	
  Financial Covenants

  	
  76

  
	
  6.10

  	
   

  	
  Sale Leaseback

  	
  76

  
	
  6.11

  	
   

  	
  Negative Pledges

  	
  76

  
	
  6.12

  	
   

  	
  Modifications

  	
  76

  
	
  6.13

  	
   

  	
  Interest Rate Contracts

  	
  77

  
	
   

  	
   

  	
   

  	
   

  
	
  Article VII Events of Default

  	
  77

  
	
   

  	
   

  
	
  7.1

  	
   

  	
  Event of Default

  	
  77

  
	
  7.2

  	
   

  	
  Remedies

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
  Article VIII The Administrative Agent

  	
  80

  
	
   

  	
   

  
	
  8.1

  	
   

  	
  Appointment

  	
  80

  
	
  8.2

  	
   

  	
  Delegation of Duties

  	
  80

  
	
  8.3

  	
   

  	
  Exculpatory Provisions

  	
  81

  
	
  8.4

  	
   

  	
  Reliance by the Agents

  	
  81

  
	
  8.5

  	
   

  	
  Notice of Default

  	
  81

  
	
  8.6

  	
   

  	
  Non-Reliance on Agents and Other Lenders

  	
  82

  
	
  8.7

  	
   

  	
  Indemnification

  	
  82

  
	
  8.8

  	
   

  	
  Agents in Their Individual Capacity

  	
  83

  
	
  8.9

  	
   

  	
  Successor Administrative Agent

  	
  83

  
	
  8.10

  	
   

  	
  Limitations on Agents Liability

  	
  83

  
	
  8.11

  	
   

  	
  Collateral

  	
  83

  
	
   

  	
   

  	
   

  	
   

  
	
  Article IX Exculpation

  	
  84

  
	
   

  	
   

  
	
  9.1

  	
   

  	
  Exculpated Parties

  	
  84

  
	
  9.2

  	
   

  	
  Carveouts From Non-Recourse Limitations

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
  Article X Miscellaneous Provisions

  	
  86

  
	
   

  	
   

  
	
  10.1

  	
   

  	
  No Assignment by Borrower

  	
  86

  
	
  10.2

  	
   

  	
  Modification

  	
  86

  
	
  10.3

  	
   

  	
  Cumulative Rights; No Waiver

  	
  87

  
	
  10.4

  	
   

  	
  Entire Agreement

  	
  87

  
	
  10.5

  	
   

  	
  Survival

  	
  87

  
	
  10.6

  	
   

  	
  Notices

  	
  87

  
	
  10.7

  	
   

  	
  Governing Law

  	
  88

  
	
  10.8

  	
   

  	
  Assignments, Participations, Syndication, Etc.

  	
  88

  
	
  10.9

  	
   

  	
  Counterparts

  	
  89

  

 

iii

 

	
  10.10

  	
   

  	
  Sharing of Payments

  	
  90

  
	
  10.11

  	
   

  	
  Confidentiality

  	
  90

  
	
  10.12

  	
   

  	
  Consent to Jurisdiction

  	
  90

  
	
  10.13

  	
   

  	
  Waiver of Jury Trial

  	
  91

  
	
  10.14

  	
   

  	
  Indemnity

  	
  91

  
	
  10.15

  	
   

  	
  Telephonic Instruction

  	
  92

  
	
  10.16

  	
   

  	
  Marshalling; Payments Set Aside

  	
  92

  
	
  10.17

  	
   

  	
  Set-off

  	
  92

  
	
  10.18

  	
   

  	
  Severability

  	
  93

  
	
  10.19

  	
   

  	
  No Third Parties Benefited

  	
  93

  
	
  10.20

  	
   

  	
  Time

  	
  93

  
	
  10.21

  	
   

  	
  Reinstatement

  	
  93

  
	
  10.22

  	
   

  	
  Rights Under Specified Interest Rate Contracts

  	
  93

  

 

iv

 

SCHEDULES AND
EXHIBITS

 

	
  SCHEDULES:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule I

  	
   

  	
  Commitments

  
	
  Schedule 1.1A

  	
   

  	
  Allocated Loan Amount

  
	
  Schedule 1.1C

  	
   

  	
  Legal Description of Cactus Assemblage

  
	
  Schedule 1.1D

  	
   

  	
  Material Agreements

  
	
  Schedule 1.1E

  	
   

  	
  Legal Description of Wild Wild West
  Assemblage

  
	
  Schedule 3.1(1)

  	
   

  	
  Long-Term Approved Leases

  
	
  Schedule 3.1(2)

  	
   

  	
  Conditions to Funding of Loan

  
	
  Schedule 4

  	
   

  	
  Exceptions to Representations and
  Warranties

  
	
  Schedule 4.1

  	
   

  	
  Material Obligations and Liabilities

  
	
  Schedule 4.6

  	
   

  	
  Material Litigation

  
	
  Schedule 4.7

  	
   

  	
  Taxes

  
	
  Schedule 4.9

  	
   

  	
  Capital Stock of Borrower

  
	
  Schedule
  4.11

  	
   

  	
  ERISA Compliance

  
	
  Schedule
  4.14

  	
   

  	
  Required Consents

  
	
  Schedule
  4.15

  	
   

  	
  Hazardous Materials

  
	
  Schedule
  4.17

  	
   

  	
  Existing Insurance

  
	
  Schedule
  4.27

  	
   

  	
  Taxpayer ID Numbers

  
	
  Schedule
  4.29

  	
   

  	
  Property Accounts

  
	
  Schedule 5.5

  	
   

  	
  Insurance Requirements

  
	
  Schedule 6.6

  	
   

  	
  Affiliate Transactions

  
	
  Schedule 10.6

  	
   

  	
  Notices

  

 

v

 

	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Form of Guaranty

  
	
  Exhibit B

  	
   

  	
  Form of Assignment and Acceptance
  Agreement

  
	
  Exhibit C

  	
   

  	
  Form of Closing Certificate

  
	
  Exhibit D-1

  	
   

  	
  Form of Subordination Agreement

  
	
  Exhibit D-2

  	
   

  	
  Form of Tenant Estoppel

  
	
  Exhibit E

  	
   

  	
  Form of Note

  
	
  Exhibit F

  	
   

  	
  Form of Pledge Agreement

  
	
  Exhibit G

  	
   

  	
  Form of Assignment of Interest Rate
  Contract

  
	
  Exhibit H

  	
   

  	
  Form of Deposit Account Control
  Agreement

  
	
  Exhibit I

  	
   

  	
  Form of Advance Request

  
	
  Exhibit J

  	
   

  	
  Form of Securities Account Control
  Agreement

  
	
  Exhibit K

  	
   

  	
  Form of Environmental Indemnity

  
	
  Exhibit L

  	
   

  	
  Form of Compliance Certificate

  
	
  Exhibit M

  	
   

  	
  Form of Assignment of Contracts

  
	
  Exhibit N

  	
   

  	
  Form of Counterparty Acknowledgment

  
	
  Exhibit O

  	
   

  	
  Form of Assignment of Leases and Rents

  
	
  Exhibit P

  	
   

  	
  Form of Rate Request

  
	
  Exhibit Q

  	
   

  	
  Form of Survey Certification

  

 

vi

 

CREDIT AGREEMENT

 

THIS CREDIT AGREEMENT (this “Agreement”)
is made and dated as of the 7th day of February, 2008 (“Effective
Date”), by and between CV PROPCO, LLC, a limited liability company
organized under the laws of the state of Nevada (“Borrower”); THE
LENDERS FROM TIME TO TIME PARTY HERETO (collectively and severally, the “Lenders”);
DEUTSCHE BANK TRUST COMPANY AMERICAS (“DBTCA”), as administrative agent
for the Secured Parties (in such capacity, the “Administrative Agent”);
and JPMORGAN CHASE BANK, N.A. (“JPM”) as syndication agent (in such
capacity, the “Syndication Agent”).

 

RECITALS

 

A.            The Borrower has requested that the Lenders
extend a Term Loan Credit Facility to Borrower in the aggregate amount of
$250,000,000 (the “Facility”).  On
the Closing Date, $200,000,000 of the Facility shall be advanced to (a) fund
a one-time distribution to Station Casinos, Inc. (the “Closing Date
Distribution”), (b) establish the Interest Reserve (as hereinafter
defined), and (c) pay Facility-related expenses and fees.  Subsequent to the Closing Date, Borrower may
request additional advances of the Facility, up to an aggregate amount of
$50,000,000, to finance the purchase of parcels of real property adjacent to
the Wild Wild West Assemblage (as hereinafter defined) as approved by the
Administrative Agent in its reasonable discretion (such approved parcels, the “Adjacent
Parcels”), subject to the terms and conditions of this Agreement.

 

B.            The Lenders party hereto have agreed to
extend such Facility and DBTCA has agreed to act as administrative agent on
behalf of the Secured Parties on the terms and subject to the conditions set
forth herein and in the other Loan Documents (as that term and other capitalized
terms used herein are defined in, or the location of the definitions thereof
referenced in, Article I).

 

NOW, THEREFORE, in consideration of the above
Recitals and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto hereby agree as
follows:

 

AGREEMENT

 

ARTICLE I

DEFINED TERMS

 

1.1           Defined terms.  As used in this Agreement, the following
terms have the following meanings:

 

“Acceptable
Counterparty” shall mean a bank or other financial institution which has (a) either
(i) a long-term unsecured debt rating of “A+” or higher by S&P or (ii) if
the long-term unsecured debt rating is “A” or lower by S&P, a short-term
rating of not less than “A-1” from S&P; (b) a long-term unsecured debt
rating of not less than “Aa3” by Moody’s; and (c) if the counterparty is
rated by Fitch, either a long-term unsecured debt rating of not less than “A”
from Fitch or a short-term unsecured debt rating of not less than “F-1” from
Fitch.

 

 

“Account
Agreement” shall mean the Securities Account Control
Agreement to be executed by Borrower, the Administrative Agent and the
Securities Intermediary, which Agreement shall be substantially in the form of Exhibit J.

 

“Account Collateral” shall have the
meaning given such term in Section 5.16 of this Agreement.

 

“Acknowledgment”
shall mean the Acknowledgment, dated on or about the date hereof made by the
Acceptable Counterparty to the Required Interest Rate Contracts in the form of Exhibit N.

 

“Act” shall have the meaning given
such term in Section 4.13 of this Agreement.

 

“Adjacent Parcels” shall have the
meaning given such term in Recital A of this Agreement.

 

“Administrative Agent” shall have the
meaning given such term in the preamble to this Agreement and shall include any
successor to DBTCA as the initial “Administrative Agent” hereunder.

 

“Advance” shall mean each disbursement
of any portion of a Loan by Lenders to Borrower pursuant to the terms of this
Agreement and the other Loan Documents.

 

“Advance Request” shall mean  a request by the Borrower for an Advance in
accordance with Section 2.1(2)(iii), substantially in the form of Exhibit I.

 

“Affiliate” shall mean, as to any
Person, any other Person directly or indirectly Controlling, Controlled by or
under direct or indirect common Control with, such Person.  In the case of a Lender which is a fund that
invests in loans, any other fund that invests in loans which is managed by the
same investment advisor as such Lender, or by another Affiliate of such Lender
or such investment advisor, shall be deemed an Affiliate of such Lender.

 

“Agents” shall mean the Administrative
Agent and the Syndication Agent, together with their permitted successors and
assigns.

 

“Aggregate Commitments” shall mean the
Commitments of all Lenders in the aggregate. 
The Aggregate Commitments as of the Closing Date are $250,000,000.

 

“Agreement” shall mean this Credit
Agreement, as the same may be Modified.

 

“Allocated
Loan Amount” shall mean with respect to each Real Property, the designated
allocated portion of the aggregate Loans applicable to such Real Property that
is set forth on Schedule 1.1A attached hereto.

 

“ALTA”
shall mean American Land Title Association, or any successor thereto.

 

“Anti-Terrorism Laws” shall have the
meaning given such term in Section 4.28(1) of this Agreement.

 

2

 

“Applicable Base Rate” shall mean the
floating rate per annum equal to the daily average Base Rate in effect during
the applicable calculation period plus the “Base Rate Spread” set forth
in the Notes.

 

“Applicable LIBO Rate” shall mean,
with respect to the applicable Interest Period, the floating rate per annum
equal to the Reserve Adjusted LIBO Rate plus the “LIBO Rate Spread” set
forth in the Notes.

 

“Appraisal” shall mean a real estate
appraisal conducted in accordance with the Uniform Standards of Professional
Appraisal Practice (as promulgated by the Appraisal Standards Board of the
Appraisal Foundation) and all Requirements of Law applicable to Lenders, including
in conformity with the Financial Institutions Reform Recovery and Enforcement Act (FIRREA), undertaken by an independent appraisal firm
satisfactory to Agents in their sole discretion, and providing an assessment of
fair market value of the subject Real Property.

 

“Appraised Value” shall mean the most
recent fair market value established by an Appraisal acceptable to
Administrative Agent.

 

“Approved
Bank” shall mean a bank or other financial institution which has a minimum
long-term unsecured debt rating of at least “A” and a minimum short-term
unsecured debt rating of at least “A-1” by each of the Rating Agencies, it
being understood that the A and A-1 benchmark ratings and other benchmark
ratings in this Agreement are intended to be the ratings, or the equivalent of
ratings, issued by S&P.

 

“Approved Leases” shall mean (a) all
existing Leases (the “Existing Leases”), (b) any Leases entered
into by Borrower as landlord after the Closing Date which will expire on or
prior to the date that is six (6) months before the Maturity Date or which
are terminable without cost to Borrower, as landlord, upon not more than sixty
(60) days notice to the tenant thereunder and which are otherwise on terms and
conditions similar to the Existing Leases, and (c) any other Leases
entered into by Borrower as landlord after the Closing Date that are in form
and substance acceptable to the Administrative Agent, in its reasonable
discretion.

 

“Assignee” shall have the meaning
given such term in Section 10.8(1) of this Agreement.

 

“Assignment and Acceptance Agreement”
shall mean an agreement substantially in the form of Exhibit B.

 

“Assignment of Contracts” shall mean
an agreement substantially in the form of Exhibit M.

 

“Assignment of Interest Rate Contract”
shall mean each Assignment of Interest Rate Contract and Security Agreement in
the form attached hereto as Exhibit G, to be delivered by the
Borrower, as assignor, to the Administrative Agent, as assignee, assigning to
the Administrative Agent all of the Borrower’s interest in the applicable
Required Interest Rate Contract, as the same may be Modified.

 

3

 

“Assignment of Leases and Rents” shall
mean an agreement substantially in the form of Exhibit O.

 

“Bankruptcy Code” shall mean Title 11,
U.S.C.A., as amended from time to time and any successor thereto.

 

“Base Rate” shall mean on any day the
higher of:  (a) the Prime Rate in
effect on such day, and (b) the sum of the Federal Funds Rate in effect on
such day plus one half of one percent (0.50%).

 

“Base
Rate Loans” shall mean any Loan bearing interest at a rate
determined by reference to the Base Rate.

 

“Beneficial”
shall mean, when used in the context of beneficial ownership, the analogous
meaning to that specified in Rule 13d-3 under the Securities Exchange Act
of 1934, as amended.

 

“Borrower” shall have the meaning
given to such term in the preamble to this Agreement.

 

“Borrower Parties” shall mean, jointly
and severally, each of the Borrower, Guarantors, Pledgor and any Affiliate of
the foregoing executing any Loan Document.

 

“Business Day” shall mean any day
other than a Saturday, a Sunday or a day on which banks in New York are
authorized or obligated to close their regular banking business.

 

“Cactus Assemblage” shall mean that
certain land assemblage located in the Las Vegas, Nevada metropolitan area, on
the Closing Date consisting of approximately 60.72 acres of land located on the
northeast corner of Interstate 15 and Cactus Avenue, as more particularly
described on Schedule 1.1C.

 

“Capital Stock” shall mean (a) with
respect to any Person that is a corporation, any and all shares, interests,
participations or other equivalents (however designated and whether or not
voting) of corporate stock, including, without limitation, each class or series
of common stock and preferred stock of such Person and (b) with respect to
any Person that is not a corporation, any and all investment units,
partnership, membership or other equity interests of such Person.

 

“Cash Equivalents” shall mean, with
respect to any Person, any direct
obligations of, or obligations guaranteed as to principal and interest by, the
United States Government or any agency or instrumentality thereof, provided
that such obligations are backed by the full faith and credit of the United
States.  Any such obligation must be
limited to instruments that have a predetermined fixed dollar amount of
principal due at maturity that cannot vary or change.  If any such obligation is rated by S&P,
it shall not have an “r” highlighter affixed to its rating.  Interest must be fixed or tied to a single
interest rate index plus a single fixed spread (if any), and move
proportionately with said index.  U.S. Government
Obligations include, but are not limited to: 
U.S. Treasury direct or fully guaranteed obligations, Farmers Home
Administration certificates of beneficial ownership, General Services
Administration participation certificates,

 

4

 

U.S. Maritime Administration guaranteed Title XI financing, Small
Business Administration guaranteed participation certificates or guaranteed
pool certificates, U.S. Department of Housing and Urban Development local
authority bonds, and Washington Metropolitan Area Transit Authority guaranteed
transit bonds.  In no event shall any
such obligation have a maturity in excess of 365 days.

 

“Casualty”
shall mean a fire, explosion, flood, collapse, hurricane, or other casualty
affecting the Mortgaged Property.

 

“CERCLIS” shall have the meaning given
such term in Section 4.15 of this Agreement.

 

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

 

“Change of Control” shall mean, at any
time, that Station Casinos, Inc. shall cease to own and control, directly,
one hundred percent (100%) of the Capital Stock of Pledgor, or Pledgor shall
cease to own and control, directly, one hundred percent (100%) of the Capital
Stock of Borrower.

 

“Closing Certificate” shall mean a
certificate in substantially the form of Exhibit C.

 

“Closing Date” shall mean the date as
of which all conditions set forth in Section 5.1 of this Agreement
shall have been satisfied and the Initial Funding has occurred.

 

“Closing
Date Distribution” shall have the meaning given such term in Recital A
of this Agreement.

 

“Code” shall mean the Internal Revenue
Code of 1986, as amended, and the rules and regulations promulgated
thereunder, as from time to time in effect.

 

“Commitment”
shall mean the commitment of a Lender to make or otherwise fund any Loan.  The amount of each Lender’s Commitment is set
forth on Schedule I or in the applicable Assignment and Acceptance
Agreement, subject to any adjustment or reduction pursuant to the terms and
conditions hereof.

 

“Compliance Certificate” shall have the meaning given such term
in Section 5.1(3) of this Agreement.

 

“Condemnation”
shall mean a taking or voluntary conveyance during the term hereof of all or
any part of the Mortgaged Property or any interest therein or right accruing
thereto or use thereof, as the result of, or in settlement of, any condemnation
or other eminent

 

5

 

domain
proceeding by any Governmental Authority, whether or not the same shall have
actually been commenced.

 

“Consolidated” shall mean with respect
to any Person, the consolidation of accounts of such Person and its
Subsidiaries, in conformity with GAAP.  “Consolidation”
shall have a meaning correlative thereto.

 

“Consolidated Entity” shall mean, with
respect to any Person, (a) any Subsidiary of such Person and (b) any
Person Consolidated in the financial statements of such Person in accordance
with GAAP.

 

“Contact Office” shall mean the office
of DBTCA located at Deutsche Bank Trust Company Americas, 60 Wall Street, MS
NYC60-1110, New York, NY 10005-2858, Attention: 
Loan Administration, or such other offices in New York, New York as the
Administrative Agent may notify the Borrower and the Lenders from time to time
in writing.

 

“Contractual Obligation” shall mean,
as to any Person, any provision of any security issued by such Person or of any
agreement, instrument or undertaking to which such Person is a party or by
which it or any of its property is bound.

 

“Control” shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through ownership of voting securities, by
contract or otherwise, and the terms “Controlled,” “Controlling” and “Common
Control” shall have correlative meanings.

 

“Counterparty” shall mean the counterparty to a
Required Interest Rate Contract, which shall be an Acceptable Counterparty.

 

“Credit
Date” shall mean the date of the making of a Loan.

 

“DBTCA” shall have the meaning given
to such term in the preamble to this Agreement.

 

“Default Rate” shall mean a per annum
rate equal to two percent (2%) above the Applicable Base Rate in effect during
the applicable calculation period (whether or not such Applicable Base Rate
shall otherwise have been elected by Borrower in accordance with this
Agreement).

 

“Defaulted Loan” shall have the
meaning given such term in Section 2.13(2) of this Agreement.

 

“Defaulting Lender” shall have the
meaning given such term in Section 2.13(2) of this Agreement.

 

“Deposit
Account” shall mean a demand, time, savings, passbook or like
account with a bank, savings and loan association, credit union or like
organization, other than an account evidenced by a negotiable certificate of
deposit.

 

6

 

“Deposit Account Control Agreements”
shall mean each of the Deposit Account Control Agreements, to be executed by
Borrower, the Administrative Agent and the applicable financial institution at
which a Property Account is established, which Agreement shall be substantially
in the form of Exhibit H.

 

“Disposition” shall mean the sale,
conveyance, pledge, hypothecation, ground lease, encumbrance, creation of a
security interest with respect to, or other transfer, whether voluntary or
involuntary, direct or indirect, of any legal or beneficial interest in a
Mortgaged Property, or other Property of the Borrower; provided,
however, that Disposition shall not include any Permitted Encumbrances.

 

“Distribution” shall mean with respect
to the Borrower:  (a) any
distribution of cash or Cash Equivalents, directly or indirectly, to the
partners or holders of Capital Stock of the Borrower, or any other distribution
on or in respect of any partnership, company or equity interests of the
Borrower; (b) the declaration or payment of any dividend on or in respect
of any shares of any class of Capital Stock of the Borrower; or (c) the
purchase, redemption, or other retirement of any shares of any class of Capital
Stock of the Borrower, directly or indirectly.

 

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

 

“Downgrade” shall have the meaning
given such term in Section 5.13(3)(ii) of this Agreement.

 

“Effective Date” shall mean the date
first written in the introductory paragraph of this Agreement.

 

“Eligible
Assignee” shall mean any of the following:

 

(a)           A
commercial bank organized under the laws of the United States, or any state
thereof, and having a combined capital and surplus of at least $100,000,000;

 

(b)           A
commercial bank organized under the laws of any other country which is a member
of the Organization for Economic Cooperation and Development (the “OECD”),
or a political subdivision of any such country, and having a combined capital
and surplus of at least $100,000,000 (provided that such bank is acting
through a branch or agency located in the country in which it is organized or
another country which is also a member of the OECD);

 

(c)           A
Person that is engaged in the business of commercial banking and that is:  (i) an Affiliate of a Lender, (ii) an
Affiliate of a Person of which a Lender is an Affiliate, or (iii) a Person
of which a Lender is an Affiliate;

 

(d)           An
insurance company, mutual fund or other financial institution organized under
the laws of the United States, any state thereof, any other country which is a
member of the OECD or a political subdivision of any such country which invests
in bank loans and has total assets of $500,000,000; and

 

7

 

(e)           Any
fund which invests in bank loans and whose assets exceed $100,000,000;

 

provided, however,
that no Person shall be an “Eligible Assignee” unless at the time of the
proposed assignment to such Person:  (i) such
Person is able to make or maintain, as applicable, its portion of the Loans in
Dollars, (ii) such Person is exempt from withholding of tax on interest
and is able to deliver the documents related thereto pursuant to Section 2.15(5) of
this Agreement, (iii) such Person is not a Borrower Party, or an Affiliate
thereof.]

 

“Environmental Indemnity” shall mean
the Environmental Indemnity, dated the date hereof, made by Borrower and
Guarantors in favor of Administrative Agent, which agreement shall be
substantially in the form of Exhibit K.

 

“ERISA” shall mean the Employee
Retirement Income Security Act of 1974, as Modified, and the rules and
regulations promulgated thereunder as from time to time in effect.

 

“ERISA Affiliate” shall mean any trade
or business (whether or not incorporated) under common control with any
Consolidated Entity within the meaning of Section 414(b) or (c) of
the Code (and Sections 414(m) and (o) for purposes of provisions
relating to Section 412 of the Code).

 

“ERISA Event” shall mean (a) a
Reportable Event with respect to a Pension Plan or a Multiemployer Plan; (b) a
withdrawal by any Consolidated Entity or any ERISA Affiliate from a Pension
Plan subject to Section 4063 of ERISA during a plan year in which it was a
substantial employer (as defined in Section 4001(a)(2) of ERISA) or a
cessation of operations which is treated as such a withdrawal under Section 4062(e) of
ERISA; (c) a complete or partial withdrawal by any Consolidated Entity or
any ERISA Affiliate from a Multiemployer Plan or notification that a
multiemployer is in reorganization; (d) the filing of a notice of intent
to terminate, the treatment of a plan amendment as a termination under Section 4041
or 4041A of ERISA or the commencement of proceedings by the PBGC to terminate a
Pension Plan or Multiemployer Plan; (e) a failure by any Consolidated
Entity to make required contributions to a Pension Plan, Multiemployer Plan or
other Plan subject to Section 412 of the Code; (f) an event or
condition which might reasonably be expected to constitute grounds under Section 4042
of ERISA for the termination of, or the appointment of a trustee to administer,
any Pension Plan or Multiemployer Plan; (g) the imposition of any
liability under Title IV of ERISA, other than PBGC premiums due but not
delinquent under Section 4007 of ERISA, upon any Consolidated Entity or
any ERISA Affiliate; or (h) an application for a funding waiver or an
extension of any amortization period pursuant to Section 412 of the Code
with respect to any Plan.

 

“Eurodollar Business Day” shall mean a
Business Day on which commercial banks in London, England are open for domestic
and international business.

 

“Event of Default” shall have the
meaning given such term in Section 7.1 of this Agreement.

 

“Evidence of No Withholding” shall
have the meaning given such term in Section 2.15(5) of this
Agreement.

 

8

 

“Excluded Taxes” shall mean, with
respect to the Administrative Agent, any Lender, or any other recipient of any
payment to be made by or on account of any obligation of the Borrower
hereunder, (a) income or franchise taxes imposed on (or measured by) its
net income by the United States of America, or by any state, locality or
foreign jurisdiction under the laws of which such recipient is organized or in
which it maintains an office or permanent establishment, (b) any branch
profits taxes imposed by the United States of America or any similar tax
imposed by any other jurisdiction in which the Borrower is located and (c) in
the case of a Foreign Lender, any withholding tax that is imposed on amounts
payable to such Foreign Lender at the time such Foreign Lender becomes a party
to this Agreement or is attributable to such Foreign Lender’s failure to comply
with Section 2.15(5) of this Agreement; provided,
however, Excluded Taxes shall not include any withholding tax resulting from
any inability to comply with Section 2.15(5) of this Agreement
solely by reason of there having occurred a Change in Law.

 

“Executive Order” shall have the
meaning given such term in Section 4.28(1) of this Agreement.

 

“Facility”
shall have the meaning given such term in Recital A of this Agreement.

 

“Federal
Funds Rate” shall mean for any day, an interest rate per annum 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 for such day (or, if such day is not a Business Day, for the
immediately preceding Business Day) by the Federal Reserve Bank of New York,
or, if such rate is not so published for any day which is a Business Day, the
average of the quotations at approximately 1:00 p.m. (New York time) on
such day on such transactions received by the Administrative Agent from three
Federal funds brokers of recognized standing selected by the Administrative
Agent in its sole discretion.

 

“Fee Letter” shall mean the letter
agreement dated on November 2, 2007 between Agents and Borrower relating
to fees.

 

“Fiscal Quarter” or “fiscal quarter”
shall mean any 3-month period ending on March 31, June 30, September 30
or December 31 of any Fiscal Year.

 

“Fiscal Year” or “fiscal year”
shall mean the 12-month period ending on December 31 in each year or such
other period as any Borrower may designate and the Administrative Agent may
approve in writing.

 

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

 

“FP”
shall mean Fertitta Partners LLC, a Nevada limited liability company.

 

“Funded Debt” shall mean Indebtedness
of the Borrower arising from the Obligations.

 

9

 

“Funding Default” shall have the
meaning given such term in Section 2.13(2) of this Agreement.

 

“GAAP” shall mean generally accepted
accounting principles in the United States of America as in effect from time to
time set forth in the opinions and pronouncements of the Accounting Principles
Board and the American Institute of Certified Public Accountants and the
statements and pronouncements of the Financial Accounting Standards Board, or
in such other statements by such other entity as may be in general use by
significant segments of the accounting profession, which are applicable to the
circumstances as of the date of determination; provided that with
respect to determining compliance with any financial covenants set forth in Section 6.9
(including related definitions), “GAAP” shall be determined based upon those
accounting principles referred to above as of the Closing Date.

 

“Good Faith Contest” shall mean the
contest of an item if (a) no Event of Default shall exist and be
continuing; (b) the item is diligently contested in good faith, and, if
appropriate, by proceedings timely instituted, (c) the Borrower shall keep
the Administrative Agent informed of the status of such contest at reasonable
intervals; (d) if the Borrower is not providing security as provided in
clause (e) below, adequate reserves are established in accordance with
GAAP with respect to the contested item; (e) either such contest operates
to suspend collection or enforcement (as the case may be) of the contested item
or the Borrower has deposited with Administrative Agent a bond in the amount of the contested
item; (f) in the case of any contested items which are not bonded in
excess of $2,000,000 or $10,000,000 in the aggregate, during such contest,
Borrower, shall deposit with or deliver to the Agent either cash and Cash
Equivalents or a letter of credit in an amount equal to 110% of (A) the
amount of Borrower’s obligations being contested plus (B) any additional
interest, charge, or penalty arising from such contest; and (g) the
failure to pay or comply with the contested item during the period of the
contest is not reasonably likely to result in a Material Adverse Effect.

 

“Governmental Authority” shall mean
any nation or government, any state or other political subdivision thereof, any
central bank (or similar monetary or regulatory authority) thereof, any court
or other entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government.

 

“Guarantors” shall mean, individually
and collectively, Holdco, FP and
VoteCo, each in its capacity as a guarantor under the Guaranty.

 

“Guaranty” shall mean the Recourse
Guaranty executed by the Guarantors in favor of the Administrative Agent, in
substantially the form of Exhibit A.

 

“Hazardous Materials” shall mean any
flammable materials, explosives, radioactive materials, hazardous or toxic
wastes, substances or materials, including, without limitation, any substances
defined as or included in the definitions of “hazardous substances,” “hazardous
wastes,” “hazardous materials,” or “toxic substances” under any applicable
federal, state, or local laws or regulations, taking into account applicable
concentration levels.

 

“Hazardous Materials Claims” shall
mean any enforcement, cleanup, removal or other governmental or regulatory
action or order with respect to the Property, pursuant to any

 

10

 

Hazardous
Materials Laws, and/or any claim asserted in writing by any third party
relating to damage, contribution, cost recovery compensation, loss or injury
resulting from any Hazardous Materials.

 

“Hazardous Materials Laws” shall mean any federal, state or local
statute, regulation or ordinance or any judicial or administrative decree or
decision, whether now existing or hereinafter enacted, promulgated or issued,
with respect to the protection of human health from any environmental hazards
(as relating to exposure to such environmental hazards), or the environment, or
any Hazardous Materials, wetlands, landfills, open dumps, storage tanks,
underground storage tanks, solid waste, waste water, storm water run-off, waste
emissions or wells.  Without limiting the
generality of the foregoing, the term shall encompass each of the following
statutes, and regulations promulgated thereunder, and amendments and successors
to such statutes and regulations, as may be enacted and promulgated from time
to time:  (i) the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (codified in
scattered sections of 26 U.S.C.; 33 U.S.C.; 42 U.S.C. and 42 U.S.C. §9601 et
seq.); (ii) the Resource Conservation and Recovery Act of 1976 (42
U.S.C. §6901 et  seq.); (iii) the Hazardous Materials
Transportation Act (49 U.S.C. §1801 et  seq.); (iv) the Toxic
Substances Control Act (15 U.S.C. §2061 et  seq.); (v) the
Clean Water Act (33 U.S.C. §1251 et  seq.); (vi) the Clean
Air Act (42 U.S.C. §7401 et  seq.); (vii) the Safe Drinking
Water Act (21 U.S.C. §349; 42 U.S.C. §201 and §300f et  seq.); (viii) the
National Environmental Policy Act of 1969 (42 U.S.C. §4321); (ix) the
Superfund Amendment and Reauthorization Act of 1986 (codified in scattered
sections of 10 U.S.C., 29 U.S.C., 33 U.S.C. and 42 U.S.C.); and (x) Title
III of the Superfund Amendment and Reauthorization Act (40 U.S.C. §1101 et
seq.).

 

“Hedging Contracts” shall mean all Interest
Rate Contracts, foreign exchange contracts, currency swap or option agreements,
forward contracts, commodity swap, purchase or option agreements, other
commodity price hedging arrangements, and all other similar agreements or
arrangements designed to alter the rights of any Person arising from
fluctuations in interest rates, currency values or commodity prices.

 

“Holdco”
shall mean FCP Holding, Inc., a Nevada corporation.

 

“Impositions” shall mean all taxes (including all
ad valorem, sales (including those imposed on lease rentals), use, single
business, gross receipts, value added, intangible transaction, privilege or
license or similar taxes), governmental assessments (including all assessments
for public improvements or benefits, whether or not commenced or completed
prior to the date of this Agreement and whether or not commenced or completed
within the term of this Agreement), water, sewer or other rents and charges,
excises, levies, fees (including license, permit, inspection, authorization and
similar fees), and all other governmental charges, in each case whether general
or special, ordinary or extraordinary, or foreseen or unforeseen, of every
character in respect of the Mortgaged Property and/or any Rents (including all
interest and penalties thereon), which at any time prior to, during or in
respect of the term of the Loans may be assessed or imposed on or be a Lien
upon (a) Borrower (including all income, franchise, single business or
other taxes), (b) the Mortgaged Property, or any other collateral
delivered or pledged to the Administrative Agent, or any Rents therefrom or any
estate, right, title or interest therein, or (c) any occupancy, operation,
use or possession of, or sales from, or activity conducted on, or in connection
with the Mortgaged Property. Nothing
contained in this

 

11

 

Agreement shall be construed to require Borrower to pay any tax,
assessment, levy or charge imposed on any (i) Tenant, (ii) Agent or (iii) Lender
in the nature of a capital levy, estate, inheritance, succession, income or net
revenue tax.

 

“Improvements”
shall have the meaning given such term in the Security Instruments.

 

“Indebtedness” of any Person shall
mean without duplication (a) all indebtedness of such Person for borrowed
money, (b) all obligations of such Person evidenced by notes, bonds,
debentures or similar instruments that bear interest, (c) all
reimbursement and other obligations with respect to letters of credit and
bankers’ acceptances, (d) all indebtedness for the deferred purchase price
of property or services, other than trade payables incurred in the Ordinary
Course of Business that are not overdue, (e) all indebtedness of such
Person created or arising under any conditional sale or other title retention
agreement with respect to Property acquired by such Person (even though the
rights and remedies of the seller or lender under such agreement in the event
of default are limited to repossession or sale of such Property), (f) all
capital lease obligations of such Person and the present value of future rental
payments under all synthetic leases, (g) all guaranty obligations of such
Person with respect to obligations of another Person that would otherwise
constitute Indebtedness hereunder, (h) all obligations of such Person to
purchase, redeem, retire, defease or otherwise acquire for value any stock or
stock equivalents of such Person, valued, in the case of redeemable preferred
stock, at the greater of its voluntary liquidation preference and its involuntary
liquidation preference plus accrued and unpaid dividends, (i) all
payments that such Person would have to make in the event of an early
termination on the date Indebtedness of such Person is being determined in
respect of Hedging Contracts of such Person, (j) for the purposes of Section 7.1(5) only,
all obligations of such Person in respect of Interest Rate Contracts, and (k) all
Indebtedness of the type referred to above secured by (or for which the holder
of such Indebtedness has an existing right, contingent or otherwise, to be
secured by) any lien upon or in Property (including accounts and general
intangibles) owned by such Person, even though such Person has not assumed or
become liable for the payment of such Indebtedness but only to the extent of
the lesser of (x) the amount of such Indebtedness and (y) the fair
market value of the Property securing such Indebtedness.

 

“Indemnified Liabilities” shall have
the meaning given such term in Section 10.14 of this Agreement.

 

“Indemnified Person” shall have the
meaning given such term in Section 10.14 of this Agreement.

 

“Indemnified Taxes” shall mean Taxes,
other than Excluded Taxes, imposed in connection with or with respect to (i) the
Facility; (ii) any Mortgaged Property, other collateral for the Facility,
or any Property of a Borrower Party with respect to the Facility or the Loan
Documents; (iii) in respect of any transactions contemplated under the
Loan Documents; or (iv) any revenue or income derived from clauses (i) through
(iii) above.

 

“Independent” shall mean, when used
with respect to any Person, a Person who: (i) does not have any direct
financial interest or any material indirect financial interest in any Borrower
or in any Affiliate of any Borrower, (ii) is not connected with any
Borrower or any

 

12

 

Affiliate of
any Borrower as an officer, employee, promoter, underwriter, trustee, partner,
member, manager, creditor, director, supplier, customer or person performing
similar functions and (iii) is not a member of the immediate family of a
Person defined in (i) or (ii) above.

 

“Independent Accountant” shall mean a
firm of nationally recognized, certified public accountants which is
Independent and which is selected by Borrower and reasonably acceptable to
Administrative Agent.

 

“Initial Funding” shall mean the
initial funding of the Loans on the Closing Date in the aggregate amount of Two
Hundred Million Dollars ($200,000,000) upon satisfaction of the conditions set
forth in Section 3.1.

 

“Insurance Premiums” shall have the
meaning given such term in Section 2.13(3)(i) of Schedule
5.5 of this Agreement.

 

“Insurance
Requirements” shall mean all material terms of any insurance policy
required pursuant to this Agreement.

 

“Interest Period” shall mean (a) with
respect to any portion of the Loans which bears interest at the Applicable Base
Rate or the Default Rate, the period commencing on the date of such borrowing
and ending on the last day of the calendar month in which made, and each
succeeding calendar month thereafter; provided, that if any Base Rate
Advance is converted to a LIBO Rate Loan, the applicable Base Rate Interest
Period shall end on such date of conversion; and (b) with respect to any
portion of the Loans which bears interest at the Applicable LIBO Rate, a period
of one, two, three or six months commencing on a Eurodollar Business Day
selected by the Borrower pursuant to this Agreement; such Interest Period shall
end on (but exclude) the day which corresponds numerically to such date one,
two, three or six months thereafter, as applicable.  Notwithstanding the foregoing: (x) for
the first ninety (90) days after the Closing Date, Borrower shall not select an
Interest Period in excess of two weeks without the consent of Agents, provided
that for the initial Interest Period, the Agents hereby consent to a one-month
Interest Period;  (y) if any
Interest Period would end on a day other than a Business Day (or Eurodollar
Business Day, as applicable), such Interest Period shall be extended to the next
succeeding Business Day (or Eurodollar Business Day, as applicable) unless,
such next succeeding Business Day (or Eurodollar Business Day, as applicable)
would fall in the next calendar month, in which case such Interest Period shall
end on the next preceding Business Day (or Eurodollar Business Day, as
applicable) and (z) any Interest Period that commences on the last
Business Day (or Eurodollar Business Day, as applicable) of a calendar month
(or on a day for which there is no numerically corresponding day in the last
calendar month of such Interest Period) shall end on the last Business Day (or
Eurodollar Business Day, as applicable) of the last calendar month of such
Interest Period.  For purposes hereof,
the date of a Loan initially shall be the date on which such Loan is made and
thereafter shall be the effective date of the most recent conversion or
continuation of such Loan.

 

“Interest
Rate Contracts” shall mean all interest rate swap agreements,
interest rate cap agreements, interest rate collar agreements and interest rate
insurance.

 

“Interest
Rate Determination Date” shall mean, with respect to any
Interest Period, the date that is two Business Days prior to the first day of
such Interest Period.

 

13

 

“Interest Reserve Account” shall have
the meaning given such term in Section 5.15 of this Agreement.

 

“Investment” shall mean, with respect
to any Person, (a) any purchase or other acquisition by that Person of
Securities, or of a beneficial interest in Securities, issued by any other
Person, (b) any purchase by that Person of a Property or assets (Real
Property or Personal Property) from a Person, and (c) any loan (other than
loans to employees), advance (other than deposits with financial institutions
available for withdrawal on demand, prepaid expenses, accounts receivable,
advances to employees and similar items made or incurred in the Ordinary Course
of Business) or capital contribution by that Person to any other Person,
including, without limitation, all Indebtedness to such Person arising from a
sale of property by such Person other than in the ordinary course of its
business.  The amount of any Investment
shall be the original cost of such Investment, plus the cost of all additions
thereto less the amount of any return of capital or principal to the extent
such return is in cash with respect to such Investment without any adjustments
for increases or decreases in value or write-ups, write-downs or write-offs
with respect to such Investment.

 

“IRS” shall mean the Internal Revenue
Service or any entity succeeding to any of its principal functions under the
Code.

 

“Joint
Lead Arrangers” shall mean Deutsche Bank Securities Inc. and J.P. Morgan
Securities Inc., in their respective capacity as joint lead arranger for the
Facility, together with their respective permitted successors and assigns.

 

“Joint Venture” shall mean, as to any
Person:  (a) any corporation fifty
percent (50%) or less of the outstanding securities having ordinary voting
power of which shall at the time be owned or controlled, directly or
indirectly, by such Person or by one or more of its Subsidiaries or by such
Person and one or more of its Subsidiaries, or (b) any partnership,
limited liability company, association, joint venture or similar business
organization fifty percent (50%) or less of the ownership interests having
ordinary voting power of which shall at the time be so owned or controlled.

 

“JPM” shall have the meaning given to
such term in the preamble of this Agreement.

 

“Knowledge” shall mean the current actual knowledge of each of
Thomas Friel and Matthew Heinhold, in each case after reasonable diligence, and
of any other Responsible Officer of the Borrower or any other Borrower Party
who have actual knowledge of the relevant subject matter.

 

“Lease”
shall mean any lease, sublease or subsublease, letting, license, concession, or
other agreement (whether written or oral and whether now or hereafter in
effect) pursuant to which any Person is granted or permitted to have by Borrower
a possessory interest in, or right to use or occupy all or any portion of any
space in the Mortgaged Property or any facilities at the Mortgaged Property,
and every Modification thereto and every guarantee of the performance and
observance of the covenants, conditions and agreements to be performed and
observed by the other party thereto.

 

14

 

“Lenders” shall mean each of the
lenders from time to time party to this Agreement, including any Assignee permitted
pursuant to Section 10.8 of this Agreement.

 

“LIBO Rate” shall mean, with respect
to any Interest Period, the per annum rate for such Interest Period and for an
amount equal to the amount of the applicable Loan shown on Dow Jones Telerate Page 3750
(or any equivalent successor page) at approximately 11:00 (London time) two
Eurodollar Business Days prior to the first day of such Interest Period or if
such rate is not quoted, the arithmetic average as reasonably determined by the
Administrative Agent of the rates at which deposits in immediately available
Dollars in an amount equal to the amount of the applicable Loan having a
maturity approximately equal to such Interest Period are offered to four (4) reference
banks to be selected by the Administrative Agent in the London interbank
market, at approximately 11:00 a.m. (London time) two Eurodollar Business
Days prior to the first day of such Interest Period.

 

“LIBO Rate Loan” shall mean a Loan bearing interest at
a rate determined by reference to the LIBO Rate.

 

“LIBO Reserve Percentage” shall mean
with respect to an Interest Period, the maximum aggregate reserve requirement
(including all basic, supplemental, marginal and other reserves and taking into
account any transitional adjustments) which is imposed under Regulation D on
eurocurrency liabilities.  As of the
Closing Date, the LIBO Reserve Percentage is zero, provided, however, there can
be no assurance as to what such amount may be in the future.

 

“Lien” shall mean any mortgage, deed of trust, lien, pledge, hypothecation,
assignment, security interest, or any other encumbrance or charge on or
affecting Borrower, the Mortgaged Property, any portion thereof or any interest
therein, including, without limitation, any conditional sale or other title retention
agreement, any financing lease having substantially the same economic effect as
any of the foregoing, the filing of any financing statement, and the filing of
mechanic’s, materialmen’s and other similar liens and encumbrances.

 

“Loan” shall mean any loan made by any
Lender pursuant to this Agreement.

 

“Loan
Documents” shall mean,
collectively, this Agreement, the Notes, the Guaranty, the Security
Instruments, the Pledge Agreement, the Assignment of Interest Rate Contract,
the Acknowledgment, the Environmental Indemnity, the Assignment of Contracts,
the Assignment of Leases and Rents, the Deposit Account Control Agreements, the
Account Agreement and all other documents executed and/or delivered by Borrower
Parties in connection with the Loans including any certifications or
representations delivered by or on behalf of Borrower Parties.

 

“Loan Year” shall mean: (i) with
respect to the first Loan Year, the period beginning on the Closing Date and
ending one year thereafter; and (ii) with respect to each subsequent Loan
Year, the one year period after the end of the preceding Loan Year.

 

“Long-Term Adjacent Parcel Lease”
shall have the meaning given such term in Section 3.3(2)(iii).

 

15

 

“LTV Ratio” shall mean, as of any date
of determination, the ratio, expressed as a percentage, of (x) (i) the
aggregate outstanding principal amount of the Loans, as of such date, plus (ii) the
amount of the obligations of Borrower under any Interest Rate Contract,
including, without limitation, the Required Interest Rate Contracts, as of such
date, on a marked-to-market basis, to (y) the aggregate appraised value of
the Mortgaged Property, using the most recent Appraisals obtained or approved
by Agents.

 

“Margin Stock” shall mean “margin
stock” as defined in Regulation U.

 

“Material Adverse Effect” shall mean
any of the following:  (a) with
respect to (i) any of Guarantors, (ii) Borrower or (iii) Pledgor,
a material adverse change in, or a material adverse effect upon, the operations,
business, properties or condition (financial or otherwise) of such Persons from
and after February 7, 2008, as to Borrower and Pledgor, or September 30,
2007, as to Guarantors; (b) a material impairment of the ability of any
Borrower Party to otherwise perform under any Loan Document (including, without limitation, any
event or condition, individually or in the aggregate, that has a material
adverse effect on the ability of the Borrower to repay the principal and/or
interest of the Loans as they become due or to satisfy any of the Borrower’s
material obligations under the Loan Documents or the Specified Interest Rate
Contracts); or (c) a material adverse effect upon the legality,
validity, binding effect or enforceability against any Borrower Party of, or
the rights and remedies of any Secured Party under, any Loan Document or
Specified Interest Rate Contract.

 

“Material Agreements” shall mean the
agreements set forth on Schedule 1.1D.

 

“Material Casualty” shall have the meaning given such
term in Section 5.5(2)(iii).

 

“Material
Condemnation” shall have the meaning given such term in Section 5.5(6).

 

“Maturity Date” shall mean February 7,
2011.

 

“Minimum Balance” shall mean, as of
any date of determination, an amount equal to six (6) months of debt service on the Loans based on the
aggregate outstanding principal balance of the Loans as of the date of
determination and the then-current interest rate (taking into consideration the
Required Interest Rate Contracts).  For
purposes of this definition, the interest rate shall be determined using (a) the
actual interest rate for the then-current Interest Period for the remainder of
such Interest Period remaining as of the date of determination, and (b) the
strike price under the Required Interest Rate Contracts plus the LIBO Base Rate
Spread for the balance of the six-month period.

 

“Modifications” shall mean any
amendments, supplements, modifications, renewals, replacements, consolidations,
severances, substitutions and extensions of any document or instrument from
time to time; “Modify,” “Modified” or related words shall have meanings
correlative thereto.

 

“Moody’s” shall mean Moody’s Investors
Service, Inc., or any successor thereto.

 

16

 

“Mortgage Spreader Agreement” shall
have the meaning given such term in Section 3.3(2)(xv) of this
Agreement.

 

“Mortgaged Property” shall mean the “Mortgaged
Property” as such term is defined in the Security Instruments.

 

“Multiemployer Plan” shall mean a “multiemployer
plan” (within the meaning of Section 4001(a)(3) of ERISA) and to
which any Consolidated Entity or any ERISA Affiliate makes, is making, or is
obligated to make contributions or, during the preceding three calendar years,
has made, or been obligated to make, contributions.

 

“Net Sale Proceeds” shall mean, in
conjunction with a sale of a Real Property, an amount equal to the gross sales
price and/or all other consideration from whatever source derived from such
sale by Borrower minus actual customary closing costs and brokerage
commissions incurred by Borrower in connection with such sale.

 

“Non-Consenting Lender” shall have the
meaning given such term in Section 2.13(3) of this Agreement.

 

“Note” shall mean a promissory note in
substantially the form of Exhibit E (or such other form approved by
the Borrower, the applicable Lender and the Administrative Agent) issued by the
Borrower at the request of a Lender pursuant to this Agreement.

 

“NPL” shall have the meaning given
such term in Section 4.15 of this Agreement.

 

“Obligations” shall mean any and all
debts, obligations and liabilities of the Borrower or the other Borrower
Parties to the Administrative Agent, the other Agents and the Lenders (or, in
the case of any Specified Interest Rate Contract, any affiliate of any Lender),
whether now existing or hereafter arising, voluntary or involuntary, whether or
not jointly owed with others, direct or indirect, absolute or contingent,
liquidated or unliquidated, and whether or not from time to time decreased or
extinguished and later increased, created or incurred (but without
duplication), arising out of or related to the Loan Documents or any Specified
Interest Rate Contract.  Subject to Section 10.21
hereof, for purposes of defining “Obligations” secured by the Security Instruments,
“Obligations” shall not include any obligation or liability of Borrower
hereunder or under any of the other Loan Documents or any Specified Interest
Rate Contract which survives the repayment of Loans and the termination of this
Agreement, or of any Borrower Party (other than Borrower) under any of the Loan
Documents.

 

“OECD” shall have the meaning given
such term in clause (b) of the definition of “Eligible Assignee” in this Article I.

 

“Officer’s Certificate” shall mean as
to any entity, a certificate executed on behalf of such entity by a Responsible
Officer.

 

“Ordinary Course of Business” shall
mean, with respect to a specific Person, the ordinary course of such Person’s
business, undertaken by such Person in good faith and not for purposes of
evading any covenant or restriction in any Loan Document.

 

17

 

“Originating Lender” shall have the
meaning given such term in Section 10.8(4) of this Agreement.

 

“Organizational Documents” shall
mean:  (a) for any corporation, the
certificate or articles of incorporation, the bylaws, any certificate of
designation or instrument relating to the rights of preferred shareholders of
such corporation, and all applicable resolutions of the board of directors (or
any committee thereof) of such corporation, (b) for any partnership, the
partnership agreement, any certificate of formation, and any other instrument
or agreement relating to the rights between the partners or pursuant to which
such partnership is formed, (c) for any limited liability company, the
operating agreement, any articles of organization or formation, and any other
instrument or agreement relating to the rights between the members, pertaining
to the manager, or pursuant to which such limited liability company is formed,
and (d) for any trust, the trust agreement and any other instrument or
agreement relating to the rights between the trustors, trustees and
beneficiaries, or pursuant to which such trust is formed.

 

“Other
Charges” shall mean maintenance charges, impositions other than
Impositions, and any other charges, including, without limitation, vault
charges and license fees for the use of vaults, chutes and similar areas
adjoining the Mortgaged Property, now or hereafter levied or assessed or imposed
against the Mortgaged Property or any part thereof by any Governmental
Authority, other than those required to be paid by a Tenant pursuant to its
respective Lease.

 

“Other Taxes” shall mean any and all
present or future stamp or documentary taxes or any other excise or property
taxes, charges or similar levies of a Governmental Authority with respect to
any payment made under any Loan Document or from the execution, delivery or
enforcement of any Loan Document.

 

“Participant” shall have the meaning
given such term in Section 10.8(4) of this Agreement.

 

“Payment Date” shall mean the date
payments of interest are due pursuant to Section 2.6(3).

 

“PBGC” shall mean the Pension Benefit
Guaranty Corporation or any entity succeeding to any of its principal functions
under ERISA.

 

“Pension Plan” shall mean a pension
plan (as defined in Section 3(2) of ERISA) subject to Title IV of
ERISA which the Borrower or any ERISA Affiliate sponsors, maintains, or to
which it makes, is making, or is obligated to make contributions, or in the
case of a multiple employer plan (as described in Section 4064(a) of
ERISA) has made contributions at any time during the immediately preceding five
(5) plan years, but excluding any Multiemployer Plan.

 

“Permitted
Debt” shall mean collectively,

 

(a)           the
Obligations; and

 

(b)           trade
payables and other similar liabilities incurred in the Ordinary Course of
Business of Borrower in connection with the Approved Leases

 

18

 

or as otherwise approved by Administrative
Agent in its reasonable discretion, which liabilities shall not be secured by
Liens on the Mortgaged Property, and provided
that each such amount shall be paid within sixty (60) days following the date
on which each such amount is due.

 

“Permitted
Encumbrances” shall mean collectively,
(a) the Liens and security interests created or permitted by the Loan
Documents (including Liens created thereunder securing the Specified Interest
Rate Contracts); (b) all Liens, encumbrances and other matters disclosed
in the Title Policies; (c) Liens, if any, for Impositions imposed by any
Governmental Authority not yet due or delinquent; (d) Liens arising
after the date hereof which are for sums not yet delinquent or the subject of a
Good Faith Contest; (e) easements, rights-of-way, restrictions and other
similar charges or non-monetary encumbrances against real property which would
not individually or in the aggregate be reasonably likely to have a Property
Material Adverse Effect; (f) any judgment Lien provided that the judgment
it secures shall have been discharged of record or the execution thereof stayed
pending appeal within 30 days after the entry thereof or within 30 days after
the expiration of any stay, as applicable; (g) any Approved Lease; and (h) such other Liens as
Administrative Agent may approve in writing in its sole discretion.

 

“Permitted Investments” shall mean:

 

(a) direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United States of
America (or by any agency thereof to the extent such obligations are backed by
the full faith and credit of the United States of America), in each case
maturing within 30 days from the date of acquisition thereof;

 

(b) investments in commercial paper maturing within 30 days from
the date of acquisition thereof and having, at such date of acquisition, the
highest credit rating obtainable from S&P or from Moody’s;

 

(c) investments in certificates of deposit, banker’s acceptances
and time deposits maturing within 30 days from the date of acquisition thereof
issued or guaranteed by or placed with, and money market deposit accounts
issued or offered by, any domestic office of any commercial bank organized
under the laws of the United States of America or any State thereof which has a
combined capital and surplus and undivided profits of not less than
$500,000,000;

 

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

 

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

 

19

 

“Permitted
Tax Distribution” shall mean for any period, an amount equal to the
actual, incurred tax obligations arising from the taxable income of the
Borrower earned under the Approved Leases for such period, all as demonstrated
by Borrower to the reasonable satisfaction of the Administrative Agent, which
Permitted Tax Distribution shall be made in accordance with Borrower’s
Organizational Documents.

 

“Person”
shall mean an individual, partnership, corporation (including a business
trust), joint stock company, estate, trust, limited liability company,
unincorporated association, Joint Venture or other entity, or a Governmental
Authority.

 

“Personal
Property” shall have the meaning given such term in the
Security Instruments.

 

“Plan” shall mean an employee benefit
plan (as defined in Section 3(3) of ERISA) which the Borrower or any
ERISA Affiliate sponsors or maintains or to which the Borrower or any ERISA
Affiliate makes, is making, or is obligated to make contributions and includes
any Pension Plan, other than a Multiemployer Plan.

 

“Pledge Agreement” shall mean the
Pledge Agreement dated as of even date herewith, in substantially the form of Exhibit F,
executed by Pledgor, pursuant to which shall be pledged to Administrative
Agent, for the benefit of the Secured Parties, all of Pledgor’s ownership
interests in the Borrower.

 

“Pledgor” shall mean CV HoldCo, LLC, a
Nevada limited liability company.

 

“PML”
shall mean probable maximum loss.

 

“Potential Default” shall mean an
event which but for the lapse of time or the giving of notice, or both, would
constitute an Event of Default.

 

“Preferential Payment” shall have the
meaning given such term in Section 2.17(5) of this Agreement.

 

“Prime Rate” shall mean the
fluctuating per annum rate announced from time to time by DBTCA or any
successor Administrative Agent at its principal office in New York, New York as
its “prime rate.”  The Prime Rate is a
rate set by DBTCA as one of its base rates and serves as the basis upon which
effective rates of interest are calculated for those loans making reference
thereto, and is evidenced by the recording thereof after its announcement in
such internal publication or publications as DBTCA may designate.  The Prime Rate is not tied to any external
index and does not necessarily represent the lowest or best rate of interest
actually charged to any class or category of customers.  Each change in the Prime Rate will be
effective on the day the change is announced within DBTCA.

 

“Principal
Office” shall mean,
for Administrative Agent, the Contact Office, or such other office as
Administrative Agent may from time to time designate in writing to Borrower and
each  Lender.

 

20

 

“Pro Rata
Share” shall mean for all purposes with respect to all
payments, computations and other matters relating to the Commitment or Loans of
any Lender, the percentage obtained by dividing (a) the Commitment of that
Lender by (b) the aggregate Commitments of all Lenders.

 

“Proceeds”
shall mean amounts, awards or payments payable to or for the benefit of the
Borrower (including, without limitation, amounts payable under any title
insurance policies covering the ownership interest in the Mortgaged Property)
or the Administrative Agent in respect of all or any part of the Mortgaged
Property in connection with a Casualty or Condemnation thereof (after the
deduction therefrom and payment to the Borrower and the Administrative Agent,
respectively, of any and all reasonable expenses incurred by the Borrower and
the Administrative Agent in the recovery thereof, including all attorneys’ fees
and disbursements, the fees of insurance experts and adjusters and the costs
incurred in any litigation or arbitration with respect to such Casualty or
Condemnation).

 

“Property” shall mean, for any Person,
collectively and severally, any and all real property and all personal
property, equipment and fixtures owned or occupied by the subject Person.  “Property” shall include all Capital
Stock owned by the subject Person in a Subsidiary Entity.

 

“Property Accounts” shall mean all of
the bank accounts maintained by Borrower, each of which shall be a Deposit
Account established with a financial institution approved by the Administrative
Agent in its reasonable discretion and shall be subject to a Deposit Account
Control Agreement.

 

“Property Material Adverse Effect”
shall mean any event or condition, individually or in the aggregate, that has a
material adverse effect on the use, operation, or value of a Real Property.

 

“Purpose” shall have the meaning given
such term in the definition of “Single Purpose Entity” in this Agreement

 

“Rate Contract Collateral” shall have
the meaning given such term in Section 5.13(2) of this
Agreement.

 

“Rate Request” shall mean a request
for the conversion or continuation of a Base Rate Loan or LIBO Rate Loan in the
form attached hereto as Exhibit P.

 

“Rating
Agencies” shall mean each of S&P and Moody’s and any other
nationally-recognized statistical rating agency which has been approved by
Administrative Agent.

 

“Real
Property” shall mean each of the Wild Wild West Assemblage and the Cactus
Assemblage, together with the improvements and fixtures thereon and
appurtenances thereto.

 

“Register” shall have the meaning
given such term in Section 10.8(2) of this Agreement.

 

21

 

“Regulation D” shall mean Regulation D
of the Board of Governors of the Federal Reserve System from time to time in
effect and shall include any successor or other regulation of said Board of
Governors relating to reserve requirements applicable to member banks of the
Federal Reserve System.

 

“Regulation T” shall mean Regulation T
of the Board of Governors of the Federal Reserve System

(12 C.F.R. § 221), as the same may from time to time be Modified.

 

“Regulation U” shall mean Regulation U
of the Board of Governors of the Federal Reserve System

(12 C.F.R. § 221), as the same may from time to time be Modified.

 

“Regulation X” shall mean Regulation X
of the Board of Governors of the Federal Reserve System 

12 C.F.R. § 221), as the same may from time to time be Modified.

 

“Release Payment” shall mean, as to any
Release Property, an amount equal to the greater of (a) one hundred twenty
percent (120%) of the Allocated Loan Amount of such Release Property, and (b) seventy
percent (70%) of the Net Sale Proceeds of such Release Property.

 

“Release Property” shall have the
meaning given such term in Section 6.4(3)(iv) of
this Agreement.

 

“Rents”
shall mean all rents, rent equivalents, moneys payable as damages or in lieu of
rent or rent equivalents, royalties (including, without limitation, all oil and
gas or other mineral royalties and bonuses), income, receivables, receipts,
revenues, deposits (including, without limitation, security, utility and other
deposits), accounts, cash, issues, profits, charges for services rendered,
termination or surrender fees, penalties and other consideration of whatever
form or nature arising from the use or enjoyment of all or any portion of the
Mortgaged Property, or received by or paid to or for the account of or benefit
of the Borrower from any and all sources arising from or attributable to the
Mortgaged Property, including the rental or surrender of any office space,
retail space, parking space, halls, stores, and offices of every kind, the
rental or licensing of signs, sign space or advertising space and all
membership fees and dues, receipts, accounts receivable, cancellation fees,
credit card receipts and other receivables relating to or arising from rentals,
rent equivalent income, vending machines, parking facilities, telecommunication
and television systems, the provision or sale of other goods and services, and
Proceeds, if any, from business interruption or other loss of income insurance.

 

“Replacement Lender” shall have the
meaning given such term in Section 2.13(3) of this Agreement.

 

“Reportable Event” shall mean any of the
events set forth in Section 4043(b) of ERISA or the regulations
thereunder, other than any such event for which the thirty (30)-day notice
requirement under ERISA has been waived in regulations issued by the PBGC.

 

“Required Interest Rate Contracts” shall
mean those certain Interest Rate Contract(s) (in each case together with
the confirmation and schedules relating thereto) between the applicable
Counterparty and Borrower and: (a) in an aggregate notional amount equal
to not less than the aggregate amount of the Lenders’ Commitments hereunder; (b) which
fixes or caps

 

22

 

LIBOR at no
more than 6.50%; (c) otherwise complying with the requirements set forth
in Section 5.13; and (d) collaterally assigned to the
Administrative Agent pursuant to the Assignment(s) of Interest Rate
Contract.

 

“Required
Lenders” shall mean at any date, Lenders holding not less than 51% of the
Aggregate Commitments; provided that if DBTCA holds more than 50% of the
Aggregate Commitments, then Required Lenders will mean DBTCA plus at least one
other Lender.

 

“Requirements of Law” shall mean, as
to any Person, the Organizational Documents of such Person, and any law,
treaty, order, directive, rule or regulation, or a final and binding determination
of an arbitrator or a determination of a court or other Governmental Authority,
in each case applicable to or binding upon such Person or any of its property
or to which such Person or any of its property is subject, including, without
limitation, Hazardous Materials Laws and all covenants, restrictions and
conditions now or hereafter of record which may be applicable to the Borrower
or to the Mortgaged Property and the Improvements thereon, or to the use,
manner of use, occupancy, possession, operation, maintenance, alteration,
repair or reconstruction of the Mortgaged Property and the Improvements thereon
including, without limitation, building and zoning codes and ordinances and
laws relating to handicap accessibility.

 

“Reserve Adjusted LIBO Rate” shall
mean the rate per annum (rounded upward, if necessary, to the next higher 1/100
of one percent) calculated as of the first day of such Interest Period in
accordance with the following formula:

 

Reserve
Adjusted LIBO Rate =        LR

  1-LRP

where

LR  
=  LIBO Rate

LRP =  LIBO Reserve Percentage

 

“Responsible Financial Officer” shall
mean, with respect to any Person, the chief financial officer, of such Person
or any other officer, partner or member having substantially the same authority
and responsibility.

 

“Responsible Officer” shall mean, with
respect to any Person, the president, chief executive officer, Responsible
Financial Officer, general partner, manager, managing member of such Person or
any other officer, partner or member having substantially the same authority
and responsibility.

 

“Restoration” shall have the meaning
given such term in Section 5.5(3) of this Agreement.

 

“S&P” shall mean Standard &
Poor’s Rating Services, a division of the McGraw-Hill Companies, Inc., or
any successor thereto.

 

“Secured Parties” shall mean,
collectively, the Agents, the Lenders and, with respect to any Specified
Interest Rate Contract, the Counterparty thereto.

 

23

 

“Securities”
shall mean any stock, shares, partnership interests, membership interests,
voting trust certificates, certificates of interest or participation in any
profit sharing agreement or arrangement, bonds, debentures, options, warrants,
notes, or other evidences of indebtedness, secured or unsecured, convertible,
subordinated or otherwise, or in general any instruments commonly known as “securities”
or any certificates of interest, shares or participations in temporary or
interim certificates for the purchase or acquisition of, or any right to
subscribe to, purchase or acquire, any of the foregoing.

 

“Securities
Account” shall have the meaning given such term in Article 8 of the
UCC.

 

“Securities
Intermediary” shall mean the financial institution at which the Interest
Reserve Account is established.

 

“Security
Instruments” shall mean the deeds of trust entered into on even date
herewith by Borrower with respect to the Mortgaged Property.

 

“Single
Purpose Entity” shall mean a Person, other than an individual, which (a) is
formed or organized solely for the purpose of (i) holding, directly or
indirectly, an ownership interest in the Mortgaged Property and acquiring
Adjacent Parcels in accordance with the terms of this Agreement or (ii) holding,
directly or indirectly, an ownership interest in the Capital Stock of Persons
holding directly or indirectly, ownership interests in the Mortgaged Property
(in respect of such Person, its “Purpose”), (b) does not engage in
any business unrelated to its Purpose, (c) has not and will not have any
assets other than those related to its Purpose, and has not or will not have
any Indebtedness, other than as expressly permitted by the Loan Documents, (d) maintains
its own separate books and records and its own accounts, in each case which are
separate and apart from the books and records and accounts of any other Person,
(e) holds itself out as being a Person, separate and apart from any other
Person, (f) does not and will not commingle its funds or assets with those
of any other Person, (g) conducts its own business in its own name, (h) maintains
separate financial statements (except where consolidated financial statements
are permitted or required by applicable law or GAAP, provided that such
consolidated statements shall reflect that such Person and any other Person
covered by such financial statements are separate legal entities) and files its
own tax returns (except as otherwise required or permitted by applicable law), (i) pays
its own debts and liabilities when they become due out of its own funds, (j) observes
all partnership, corporate, limited liability company or trust formalities, as
applicable, and does all things necessary to preserve its existence as an
entity, (k) except as expressly permitted by the Loan Documents, maintains
an arm’s-length relationship with its Affiliates and does not enter into any
Contractual Obligations with any Affiliates except upon terms and conditions
that are intrinsically fair and substantially similar to those that would be
available on an arms-length basis (taking into account the relative standards
of quality and reputation of the party rendering the service) with third
parties other than an Affiliate, (l) pays the salaries of its own
employees, if any, and maintains a sufficient number of employees in light of
its contemplated business operations, (m) does not guarantee or otherwise
obligate itself with respect to the debts of any other Person, or hold out its
credit as being available to satisfy the obligations of any other Person, except
as expressly contemplated by the Loan Documents, (n) does not acquire
obligations or securities of its partners, members or shareholders, (o) allocates
fairly and reasonably with applicable Affiliates shared expenses, including any

 

24

 

overhead for
shared office space, (p) does not and will not pledge its assets for the
benefit of any other Person (except in connection with Permitted Encumbrances)
or make any loans or advances to any other Person, (q) does and will
correct any known misunderstanding regarding its separate identity, (r) maintains
adequate capital in light of its contemplated business operations, and (s) has
and will have a partnership or operating agreement, certificate of incorporation
or other organizational document which complies with the requirements set forth
in this definition.  In addition, the
Organizational Documents of such Person provide that such Person without the
unanimous consent of all of the partners, directors or members, as applicable,
shall not with respect to itself or to any other Person in which it has a
direct or indirect legal or beneficial interest (y) seek or consent to the
appointment of a receiver, liquidator, assignee, trustee, sequestrator,
custodian or other similar official for the benefit of the creditors of such
Person or all or any portion of such Person’s properties, or (z) take any
action that might cause such Person to become insolvent, petition or otherwise
institute insolvency proceedings or otherwise seek any relief under any laws
relating to the relief from debts or the protection of debtors generally.

 

“Solvent”
shall mean, when used with respect to any Person, that at the time of
determination:  (a) the fair
saleable value of its assets is in excess of the total amount of its
liabilities (including, without limitation, a reasonable reserve for contingent
liabilities); (b) the present fair saleable value of its assets is greater
than its probable liability on its existing debts as such debts become absolute
and matured; (c) it is then able and expects to be able to pay, taking
into account capital contributions, its debts (including, without limitation,
contingent debts and other  commitments)
as they mature; and (d) it has capital sufficient to carry on its
business  as conducted and as proposed to
be conducted.

 

“Specified
Interest Rate Contract” shall mean any Interest Rate Contract entered into
by (a) Borrower and (b) (i) DBTCA, Deutsche Bank Securities Inc.
or an affiliate of DBTCA or Deutsche Bank Securities Inc.,, (ii) JPM, J.
P. Morgan Securities Inc. or an affiliate of JPM or J. P. Morgan Securities
Inc., (iii) any Lender or an affiliate of a Lender, or (iv) any
Person that was a Lender or an affiliate thereof when such Interest Rate Contract
was entered into, as Counterparty.

 

“Subsidiary”
shall mean, with respect to any Person:  (a) any
corporation more than fifty percent (50%) of the outstanding securities having
ordinary voting power of which shall at the time be owned or Controlled, directly
or indirectly, by such Person or by one or more of its Subsidiaries or by such
Person and one or more of its Subsidiaries, or (b) any partnership,
limited liability company, association, joint venture or similar business
organization more than fifty percent (50%) of the ownership interests having
ordinary voting power of which shall at the time be so owned or Controlled.

 

“Subsidiary
Entities” shall mean, with respect to any Person, a Subsidiary or Joint
Venture of such Person.

 

“Survey” shall mean an ALTA survey of the
Mortgaged Property prepared by a surveyor licensed in the state the Mortgaged
Property is located and reasonably acceptable to the Administrative Agent and
the company or companies issuing the Title Policies, and containing a certification
of such surveyor reasonably acceptable to the Administrative Agent.

 

25

 

“Syndication
Agent” shall have the meaning given such term in the preamble to this
Agreement and shall include any successor to JPM as the initial “Syndication
Agent” hereunder.

 

“Tax
Affiliate” shall mean, with respect to any Person, (a) any Subsidiary
of such Person, and (b) any Affiliate of such Person with which such
Person files or is eligible to file Consolidated, combined or unitary tax
returns.

 

“Tax
Returns” shall have the meaning given such term in Section 4.7(1) of
this Agreement.

 

“Taxes”
shall mean any and all federal, state, local or foreign income, gross receipts,
license, payroll, employment, excise, severance, stamp, occupation, premium,
windfall profits, environmental, customs duties, capital stock, franchise,
business license fees, profits, withholding, social security, unemployment,
disability, Real Property, Personal Property, sales, use, transfer,
registration, room or transient occupancy, value added, alternative or add-on
minimum, estimated, or other tax of any kind whatsoever, including any
interest, penalty, or addition thereto, whether disputed or not.

 

“Tenant” shall mean any Person leasing, subleasing
or otherwise occupying any portion of the Mortgaged Property or contractually
permitted to use any portion of the facilities at the Mortgaged Property.

 

“Terminated Lender” shall have the meaning given
such term in Section 2.13(3) of this Agreement.

 

“Title Company” shall mean Commonwealth Land Title
Insurance Company and its affiliates.

 

“Title Policies” shall mean the ALTA mortgagee
title insurance policies, each in a form reasonably acceptable to the
Administrative Agent issued by the Title Company with respect to the Mortgaged
Property and insuring the lien of the Security Instruments.

 

“Transactional
Affiliate” shall have the meaning given such term in Section 6.6
of this Agreement.

 

“Transfer”
shall mean to, directly or indirectly, sell, assign, convey, mortgage,
transfer, pledge, hypothecate, encumber, grant a security interest in, exchange
or otherwise dispose of any beneficial interest or grant any option or warrant
with respect to, or where used as a noun, a direct or indirect sale,
assignment, conveyance, transfer, pledge or other disposition of any beneficial
interest by any means whatsoever whether voluntary, involuntary, by operation
of law or otherwise.

 

“Type” of Loan shall mean a Base Rate Loan or a
LIBO Rate Loan.

 

“UCC”
shall mean the Uniform Commercial Code in effect in the State of New York.

 

26

 

“Unfunded
Pension Liability” shall mean the excess of a Pension Plan’s benefit
liabilities under Section 4001(a)(16) of ERISA, over the current value of
that Plan’s assets, determined in accordance with the assumptions used for
funding the Pension Plan pursuant to Section 412 of the Code for the
applicable plan year.

 

“Unrestricted
Cash” shall mean Cash Equivalents, but only to the extent subject to a
first Lien in favor of Administrative Agent, and, in the case of any cash,
deposited in a Property Account.

 

 “USA Patriot Act” shall
have the meaning given such term in Section 4.28(1) of this
Agreement.

 

“U.S.
Government Obligations” shall mean any direct obligations of, or
obligations guaranteed as to principal and interest by, the United States
Government or any agency or instrumentality thereof, provided that such
obligations are backed by the full faith and credit of the United States. Any
such obligation must be limited to instruments that have a predetermined fixed
dollar amount of principal due at maturity that cannot vary or change. If any
such obligation is rated by S&P, it shall not have an “r” highlighter
affixed to its rating. Interest must be fixed or tied to a single interest rate
index plus a single fixed spread (if any), and move proportionately with said
index. U.S. Government Obligations include, but are not limited to: U.S.
Treasury direct or fully guaranteed obligations, Farmers Home Administration
certificates of beneficial ownership, General Services Administration
participation certificates, U.S. Maritime Administration guaranteed Title XI
financing, Small Business Administration guaranteed participation certificates
or guaranteed pool certificates, U.S. Department of Housing and Urban
Development local authority bonds, and Washington Metropolitan Area Transit
Authority guaranteed transit bonds. In no event shall any such obligation have
a maturity in excess of 365 days.

 

“VoteCo” shall mean FCP VoteCo, LLC, a Nevada limited liability
company.

 

“Wild Wild
West Assemblage” shall mean that certain land assemblage located in the Las
Vegas, Nevada metropolitan area, on the Closing Date consisting of
approximately 54.88 acres of land located near Tropicana Avenue adjacent to
Interstate 15, as more particularly described on Schedule 1.1E, plus any
Adjacent Parcels acquired by Borrower subsequent to the Closing Date.

 

1.2           Other
Interpretive Provisions.

 

In this
Agreement and in the other Loan Documents, except as otherwise expressly
provided:

 

(i)            words expressing the singular
include the plural and vice versa;

 

(ii)           words denoting gender include all
genders;

 

(iii)          words denoting the whole of a matter
or thing include a part of the matter or thing;

 

27

 

(iv)          the term “Mortgaged Property” shall be
construed to be followed by the phrase “or any part or portion thereof or
interest therein”;

 

(v)           words and expressions importing
natural Persons include Persons that are not natural Persons and vice versa;

 

(vi)          the words “hereof,” “herein” and “hereunder”
and words of similar import shall refer to this Agreement or the applicable
Loan Document, as the case may be, as a whole and not to any particular
provision of this Agreement or such Loan Document;

 

(vii)         the words “include,” “includes,” “including”
and similar terms shall be construed as if followed by the words “without being
limited to”;

 

(viii)        the words “shall” and “will” shall be
construed as obligatory terms;

 

(ix)           the word “may” shall be construed as
a discretionary term (and as if followed by “but shall not be obligated to”);

 

(x)            all references to sections,
schedules and exhibits are to sections, schedules and exhibits in or to this
Agreement or the applicable Loan Document, as the case may be;

 

(xi)           article, section, subsection and
paragraph headings and captions and any tables of contents are included solely
for convenience of reference only and shall not constitute a part of this
Agreement or the applicable Loan Document, as the case may be, for any other
purpose;

 

(xii)          exhibits and schedules annexed to this
Agreement or the applicable Loan Document, as the case may be, are hereby
incorporated into this Agreement or such Loan Document, as the case may be, as
a part of this Agreement or such Loan Document, as the case may be, with the
same effect as if set forth in the body of this Agreement or such Loan
Document, as the case may be;

 

(xiii)         the recitals to this Agreement are
incorporated into this Agreement and form a part of this Agreement and the
Borrower represents and warrants that, as of the date hereof, Recital A is true
and correct;

 

(xiv)        a reference to a document or agreement,
including this Agreement or any Loan Document, includes a reference to such
document or agreement as novated, amended, modified, supplemented or replaced
from time to time;

 

(xv)         derivatives of a word defined herein or
therein, as the case may be, have a corresponding meaning;

 

(xvi)        a reference to writing includes printing,
engraving, typewriting, lithography, photography and any other mode of
reproducing or representing words, figures or symbols in a permanent and
visible form;

 

28

 

(xvii)       a reference to any legislation or to any
provision of any legislation shall include any amendment to, and any
modification, replacement or re-enactment thereof, any legislative provision
substituted therefor, and all regulations, rules, rulings and statutory
instruments issued thereunder or pursuant thereto;

 

(xviii)      a reference to a party to this Agreement,
any Loan Document or another agreement or document includes such party’s
executors, administrators, successors and permitted assigns (provided that the foregoing
shall not be deemed to permit any Transfer of any ownership interest that is
otherwise prohibited hereunder);

 

(xix)         if a provision binds two or more
parties that provision binds those parties jointly and severally;

 

(xx)          if a party comprises two or more
Persons, the provisions of this Agreement or the applicable Loan Document, as
the case may be, binding that party bind those Persons jointly and severally;

 

(xxi)         if a payment obligation comes due on a
day which is not a Business Day, payment shall be due on the immediately following
Business Day;

 

(xxii)        attorneys,’ consultants’ and experts’
fees shall include customary disbursements and related charges of the
professional involved;

 

(xxiii)       “Approval,” “Approved,” “approval” or “approved”
shall mean, as the context so determines, an approval in writing given to the
party seeking approval after full disclosure to the party giving approval of
all material facts necessary in order to determine whether approval should be
granted.  Approvals by Agent or any
Lender may be granted or withheld in the absolute and sole discretion of Agent
or such Lender unless this Agreement or any Loan Document expressly provides
otherwise.  Similarly, where a matter is
stated to be in Agent’s or any Lender’s opinion, in Agent’s or any Lender’s
judgment, acceptable to Agent or any Lender, satisfactory to Agent or any
Lender, required by Agent or any Lender, determined by Agent or any Lender or
subject to Agent’s or any Lender’s consent or like phrases, unless this
Agreement or any Loan Document expressly provides otherwise, such terms shall
be construed to mean in Agent’s or such Lender’s sole opinion, in Agent’s or
such Lender’s sole judgment, acceptable to Agent or such Lender in its sole
discretion, satisfactory to Agent or such Lender in its sole discretion,
required by Agent or such Lender in its sole discretion, determined by Agent or
such Lender in its sole discretion, and subject to Agent’s or such Lender’s
consent in its sole discretion;

 

(xxiv)       whenever a consent, approval, request or
like act may not be unreasonably withheld, it shall also not be unreasonably
delayed or conditioned; and

 

(xxv)        the principle of construing this
Agreement or any other Loan Document against the party that drafted the same is
expressly excluded.

 

29

 

ARTICLE II

CREDIT FACILITY

 

2.1           Loans; Advances to Borrower.

 

(1)           Commitments.  Subject to the terms and conditions hereof,
each Lender severally agrees to make its Pro Rata Share of the Loans to
Borrower in an aggregate amount up to but not exceeding such Lender’s
Commitment.  Amounts advanced pursuant to
this Section 2.1(1) may be repaid as provided in this
Agreement, but may not be reborrowed. 
Each Lender’s Commitment shall expire on the Maturity Date and all Loans
and all other amounts owed hereunder with respect to the Loans and the
Commitments shall be paid in full no later than such date.  Borrower hereby agrees to accept the Loans,
subject to and upon the terms and conditions set forth herein and in the other
Loan Documents.

 

(2)           Advance Mechanics for Loans.

 

(i)            Subject to the satisfaction of the
conditions set forth in Section 3.1 hereof, on the Closing Date,
each Lender shall advance to Borrower such Lender’s Pro Rata Share of the
Initial Funding.

 

(ii)           Loans shall be made in an aggregate
minimum amount of $1,000,000 and integral multiples of $100,000 in excess of
that amount (determined based upon the total amount borrowed by Borrower and
not each Lender’s Pro Rata Share thereof).

 

(iii)          Whenever Borrower desires that Lenders
make Loans subsequent to the Initial Funding, Borrower shall deliver to
Administrative Agent a fully executed and completed Advance Request at least
thirty (30) days in advance of the proposed Credit Date, together with all of
the documentation required under Section 3.3 hereof.  Each Advance Request for a Loan shall be
irrevocable on and after the related Interest Rate Determination Date, and
Borrower shall be bound to make a borrowing in accordance therewith.

 

(iv)          Notice of receipt of each Advance
Request in respect of Loans, together with the amount of each Lender’s Pro Rata
Share thereof, if any, together with the applicable interest rate, shall be
provided by Administrative Agent to each applicable Lender by telefacsimile
with reasonable promptness; and, subject to the satisfaction of the conditions
set forth in Section 3.3 hereof, on the designated Credit Date,
each Lender shall advance to Borrower such Lender’s Pro Rata Share of the
Advance requested in the Advance Request. 
Each such Advance shall constitute a part of the Obligations, shall be
evidenced by the Notes, and shall be secured by the Security Instruments and
the other Loan Documents that secure the Notes.

 

(v)           Subject to the limitations set forth
below, each Advance initially shall be of the Type specified in the applicable
Advance Request.  Thereafter, the
Borrower may elect to convert such Advance to a different Type or to continue
such Advance.  If the Borrower fails to
deliver a timely Rate Request with respect to a LIBO Rate Loan (or to convert a
Base Rate Loan to a LIBO Rate Loan) not less than three (3) Eurodollar
Business Days prior to the end of the Interest Period applicable thereto, then
at the end of such Interest Period such Advance shall be converted to (or shall
continue as) a Base Rate Loan. 
Notwithstanding any

 

30

 

contrary provision hereof, (A) if a Potential Default has occurred
and is continuing on the day occurring three (3) Eurodollar Business Days
prior to the proposed Credit Date (with respect to each Advance Request) or the
end of a LIBO Rate Loan Interest Period, then, so long as a Potential Default
is continuing, with respect to any Advance Request, a LIBO Rate Loan shall only
be made for a one-month Interest Period, and with respect to any proposed
conversion any outstanding Advance may be converted to or continued only as a
LIBO Rate Loan for a one-month Interest Period or as a Base Rate Loan, and (B) if
an Event of Default has occurred and is continuing on the day occurring three (3) Eurodollar
Business Days prior to the proposed Credit Date (with respect to each Advance
Request) or the end of a LIBO Rate Loan Interest Period, then, so long as an
Event of Default is continuing, with respect to any Advance Request, no LIBO
Rate Loan shall be made, and with respect to any proposed conversion (1) no
outstanding Advance may be converted to or continued as a LIBO Rate Loan and (2) unless
repaid, each LIBO Rate Loan shall be converted to a Base Rate Loan at the end of
the Interest Period applicable thereto. 
Further, notwithstanding any contrary provision hereof, (x) in no
event shall there at any time be LIBO Rate Loans outstanding having more than
six (6) different interest periods, and (y) the Borrower shall only request
Interest Periods of one, two, three or six months with respect to LIBO Rate
Loans.

 

(vi)          Each Lender shall make the amount of
each Loan available to Administrative Agent not later than 12:00 p.m. (New
York time) on the applicable Credit Date by wire transfer of same day funds in
Dollars, at Administrative Agent’s Contact Office.  Except as provided herein, upon satisfaction
of the conditions precedent specified herein, Administrative Agent shall make
the proceeds of such Loans available to Borrower on the applicable Credit Date
by causing an amount of same day funds in Dollars equal to the proceeds of all
such Loans received by Administrative Agent from Lenders to be credited to the
account of Borrower at Administrative Agent’s Contact Office or such other
account as may be designated in writing to Administrative Agent by Borrower.

 

2.2           Funding of Advances.

 

(1)           Funding by Lenders.  Each Lender shall make each Loan to be made
by it hereunder on the proposed date thereof by wire transfer of immediately available
funds to the Administrative Agent at the Contact Office, ABA 021-001-033
for the Administrative Agent’s Account No. 99401268, Ref: CV PropCo, LLC,
no later than 12:00 p.m. (New York time). 
The Administrative Agent will make such Loans available to the Borrower
pursuant to the terms and conditions hereof by promptly transmitting the
amounts so received, in like funds, to the account designated by the Borrower
in the applicable Advance Request.

 

(2)           Presumption by the Administrative
Agent.  Unless the Administrative
Agent shall have received notice from a Lender prior to the proposed date of
any Advance that such Lender will not make available to the Administrative
Agent such Lender’s share of such Advance, the Administrative Agent may assume
that such Lender has made such share available on such date in accordance with Section 2.2(1) and
may, in reliance upon such assumption, make available to the Borrower a
corresponding amount.  In such event, if
a Lender has not in fact made its share of the applicable Advance available to
the Administrative Agent, then the applicable Lender agrees to pay to the
Administrative Agent forthwith on demand such corresponding amount with
interest thereon, for each day from and including the date such

 

31

 

amount is made available to the Borrower to but excluding the date of
payment to the Administrative Agent, at the Default Rate.  If such Lender pays such amount to the
Administrative Agent, then such amount (excluding the interest paid thereon)
shall constitute such Lender’s Loan included in such Advance.

 

2.3           Termination of
the Commitments; Maturity.

 

(1)           Scheduled Termination; Maturity
Date.  Unless previously terminated,
the Commitments shall terminate at 1:00 p.m., New York time, on the
Maturity Date.  Unless previously
accelerated, all Obligations with respect to the Loans shall be paid in full no
later than 1:00 p.m., New York time on the Maturity Date.

 

(2)           Voluntary Termination.  The Borrower may at any time terminate all or
a portion of the unused portion of the Commitments, provided that in the event
of a termination of less than all of the unused portion of the Commitments,
such termination shall be in a minimum amount of $2,000,000 and integral
multiples of $1,000,000 in excess thereof.

 

(3)           Notice of Voluntary Termination.  The Borrower shall notify the Administrative
Agent of any election to terminate the Commitments under Section 2.3(2) above
at least three (3) Business Days prior to the effective date of such termination,
specifying such election and the effective date thereof.  Promptly following receipt of any notice, the
Administrative Agent shall advise the Lenders of the contents thereof.  Each notice delivered by the Borrower
pursuant to this Section 2.3(3) shall be irrevocable.

 

(4)           Effect of Termination.  Any termination of the Commitments shall be
permanent.

 

2.4           Manner of Payment
of Loans; Evidence of Debt.

 

(1)           Repayment.  Subject to any earlier acceleration of the
Loans following an Event of Default, the Borrower hereby unconditionally
promises to pay to the Administrative Agent for the account of the Lenders the
outstanding principal amount of the Loans on the Maturity Date.

 

(2)           Manner of Payment.

 

(i)          The
Borrower shall notify the Administrative Agent in writing (which notice may be
by facsimile or electronic mail) of any repayment or prepayment hereunder (a) in
the case of repayment or prepayment of a LIBO Rate Loan with an Interest Period
not expiring on the date of payment, not later than 1:00 p.m. (New York
time) three  (3) Business Days
before the date of repayment or prepayment, or (b) in the case of
repayment or prepayment of a LIBO Rate Loan with an Interest Period expiring on
the date of repayment or prepayment of a Base Rate Loan, not later than 1:00 p.m.
(New York time) on the date of repayment or prepayment.  Each such notice shall be irrevocable and
shall specify the repayment or prepayment date and the principal amount of each
Advance or portion thereof to be repaid or prepaid.  Promptly following receipt of any such notice
relating to an Advance, the Administrative Agent shall advise the Lenders of
the contents thereof.  Each repayment or
prepayment of an Advance shall be applied ratably to the Loans included in the
repaid or

 

32

 

prepaid Advance.  Repayments and
prepayments shall be accompanied by (y) accrued interest to the extent
required by Section 2.6 and (z) any payments due
pursuant to Section 2.5.

 

(ii)           The Borrower shall make each payment
required to be made by it hereunder (whether of principal, interest or fees) or
under any other Loan Document (except to the extent otherwise provided therein)
prior to 1:00 p.m. (New York time) (unless otherwise specified in this
Agreement), on the date when due, in immediately available funds, without
set-off or counterclaim.  Any amounts
received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon.  All such payments shall be wired to the
Administrative Agent at the Contact Office, ABA 021-001-033
for the Administrative Agent’s Account No. 99401268, Ref: CV PropCo, LLC,
except as otherwise expressly provided in the relevant Loan Document.  The Administrative Agent shall distribute any
such payments received by it for the account of any other Person to the
appropriate recipient promptly following receipt thereof.  If any payment hereunder shall be due on a
day that is not a Business Day, the date for payment shall be extended to the
next succeeding Business Day and, in the case of any payment accruing interest,
interest thereon shall be payable for the period of such extension.  All payments hereunder or under any other
Loan Document (except to the extent otherwise provided therein) shall be made
in Dollars.

 

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

 

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

 

(5)           Effect of Entries.  The entries made in the accounts maintained
pursuant to Sections 2.4(3) and (4) above shall be
prima facie evidence of the existence and amounts of the obligations recorded
therein.  Any failure to record the
amount of a Loan, the Interest Period applicable thereto, the interest rate
applicable thereto or any other information regarding the Obligations, or any
error in doing so, shall not limit or otherwise affect the obligation of the
Borrower with respect to any of the Obligations.

 

(6)           Promissory Notes.  Upon the request of a Lender, the Borrower
shall promptly execute and deliver to such Lender a Note evidencing such Lender’s
Commitment.

 

2.5           Repayment and Prepayment of Loans.

 

(1)           Mandatory Prepayments.  The Borrower shall remit to the
Administrative Agent as a mandatory prepayment for application against the
outstanding principal balance of the Loans:

 

33

 

(i)            Concurrently with the release of any
Release Property, the Release Payment, in accordance with Section 6.4(3)(iii)(B) below.

 

(ii)         The Proceeds of a
Casualty or Condemnation of a Mortgaged Property to the extent required to be
applied to the prepayment of the Loans under this Agreement.

 

(2)           Optional
Prepayments.  Upon not less than
three (3) Business Days’ prior written notice to the Administrative Agent
(which shall promptly provide telephonic notice of the receipt thereof to each
of the Lenders), the Borrower may voluntarily prepay principal amounts
outstanding under the Loans in whole or in part (without any release of
collateral securing the Loans except as provided in Section 6.4(3)(iii) hereof);
provided, however, that voluntary prepayments shall be in the minimum
amount of $1,000,000 and integral multiples of $100,000 in excess thereof.

 

(3)           Accrued Interest.  The Borrower shall pay in connection with any
prepayment hereunder, whether voluntary or mandatory, concurrently with payment
of any principal amounts, all interest accrued but unpaid on that portion of
the Loans to which such prepayment is applied.

 

(4)           Priority of Payments.

 

(i)            Prior to the occurrence of an Event
of Default, any voluntary or mandatory prepayment of any Loan pursuant to this Section 2.5
shall be applied to prepay the Loans on a pro rata basis (in accordance with
the respective Commitments) to the full extent thereof;

 

(ii)           Following the occurrence and
continuance of an Event of Default, all amounts received by the Administrative
Agent on account of the Obligations, shall be promptly disbursed by the
Administrative Agent as follows:

 

(A)          First,
to the payment of expenses incurred by the Administrative Agent in the
performance of its duties and the enforcement of the rights of the Secured
Parties under the Loan Documents, including, without limitation, all costs and
expenses of collection, reasonable attorneys’ fees (including all allocated
costs of internal counsel), court costs and other amounts payable as provided
in Section 10.14 below;

 

(B)           Then,
to the Lenders, pro rata in accordance with their respective Pro Rata Shares,
until interest accrued on the Loans has been paid in full;

 

(C)           Then,
ratably (in proportion to the respective amounts described in this clause held
by them)  to the Lenders, pro rata in
accordance with their respective Pro Rata Shares, and to the Counterparties
under the Specified Interest Rate Contracts until principal under the Loans and
all amounts owing under the Specified Interest Rate Contracts have been paid in
full,; and

 

(D)          Then,
to the Lenders, pro rata to each Lender in accordance with the amount expressed
in a percentage, which the amount of remaining Obligations owed to

 

34

 

 such Lender bears to all
remaining Obligations held by all Lenders, until all other Obligations have
been paid in full.

 

(iii)          The order of priority set forth in Section 2.5(4)(ii) and
the related provisions of this Agreement are set forth solely to determine the
rights and priorities of the Administrative Agent and the other Lenders as
among themselves. The order of priority set forth in Sections  2.5(4)(ii)(A) through (D) may
at any time and from time to time be changed by the Required Lenders without
necessity of notice to or consent of or approval by the Borrower or any other
Person.  The order of priority set forth
in Section 2.5(4)(ii)(A) may be changed only with the prior
written consent of the Administrative Agent.

 

2.6           Interest.

 

(1)           Base Rate Loans.  The Loans comprising each Base Rate Loan
shall bear interest at a rate per annum equal to the Applicable Base Rate.

 

(2)           LIBO Rate Loans.  The Loans constituting each LIBO Rate Loan
shall bear interest at a rate per annum equal to the Applicable LIBO Rate for
the Interest Period for such Advance.

 

(3)           Payment of Interest.  The Borrower shall pay interest on the Base
Rate Loans monthly, in arrears, on the last Business Day of each calendar
month, as set forth on an interest billing statement delivered by the
Administrative Agent to the Borrower (which delivery may be by facsimile
transmission) no later than 1:00 p.m. (New York time) on a date at least
one Business Day prior to the date such interest is due.  The Borrower shall pay interest on the LIBO
Rate Loans on the last day of the Interest Period, as set forth on an interest
billing statement delivered by the Administrative Agent to the Borrower (which
delivery may be by facsimile transmission) no later than 1:00 p.m. (New
York time) on a date at least one Business Day prior to the date such interest
is due.

 

(4)           Computations.  All computations of LIBO Rate interest
payable hereunder shall be based upon a year of 360 days for the actual
number of days elapsed (which results in more interest being paid than if
computed on the basis of a 365-day year). 
All computations of Base Rate interest and fees payable hereunder shall
be based upon a year of 365 days for the actual number of days elapsed.

 

(5)           Default Interest.  During such time as there shall have occurred
and be continuing an Event of Default, all Obligations outstanding, shall, at
the election of the Administrative Agent, bear interest at the Default Rate.

 

2.7           Presumptions
of Payment.

 

Unless the Administrative Agent shall have
received notice from the Borrower prior to the date on which any payment is due
to the Administrative Agent for the account of the Lenders hereunder that the
Borrower will not make such payment, the Administrative Agent may assume that
the Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to the Lenders the amount
due.  In such event, if the Borrower has
not in fact made such payment, then each of the Lenders severally agrees to
repay 

35

 

to the Administrative Agent forthwith on demand the amount so
distributed to such Lender with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date
of payment to the Administrative Agent, at the Federal Funds Rate.

 

2.8           Pro
Rata Treatment.

 

Except to the
extent otherwise provided herein:  (1) each
Advance shall be allocated pro rata among the Lenders according to the amounts
of their respective Commitments (in the case of the making of Loans) or their
respective Loans (in the case of conversions and continuations of Loans), and
each termination of the amount of the Commitments under Section 2.3
shall be applied to the respective Commitments of the Lenders, pro rata
according to the amounts of their respective Commitments; (2) each payment
or prepayment of principal of Loans by the Borrower shall be made for account
of the Lenders pro rata in accordance with the respective unpaid principal
amounts of the Loans held by them; and (3) each payment of interest on
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.

 

2.9           Inability
to Determine Rates.

 

In the event
that the Administrative Agent shall have determined (which determination shall
be conclusive and binding upon the Borrower absent manifest error) that by reason
of circumstances affecting the interbank market adequate and reasonable means
do not exist for ascertaining the LIBO Rate for any Interest Period, the
Administrative Agent shall forthwith give telephonic notice of such
determination to each Lender and to the Borrower.  If such notice is given:  (1) no portion of the Loans may be
funded as a LIBO Rate Loan, (2) any Base Rate Loan that was to have been
converted to a LIBO Rate Loan shall, subject to the provisions hereof, be
continued as a Base Rate Loan, and (3) any outstanding LIBO Rate Loan
shall be converted, on the last day of the Interest Period applicable thereto,
to a Base Rate Loan.  Until such notice
has been withdrawn by the Administrative Agent, the Borrower shall not have the
right to convert any Base Rate Loan to a LIBO Rate Loan or to continue a LIBO
Rate Loan as such beyond the then applicable Interest Period.  The Administrative Agent shall withdraw such
notice in the event that the circumstances giving rise thereto no longer
pertain and that adequate and reasonable means shall exist for ascertaining the
LIBO Rate for the Interest Period requested by the Borrower, and, following
withdrawal of such notice by the Administrative Agent, the Borrower shall have
the right to convert any Base Rate Loan to a LIBO Rate Loan and to continue any
LIBO Rate Loan as such in accordance with the terms and conditions of this
Agreement.

 

2.10         Illegality.

 

Notwithstanding
any other provisions herein, if any Requirement of Law, or any change therein
or in the interpretation or application thereof, shall make it unlawful for any
Lender to maintain LIBO Rate Loans as contemplated by this Agreement:  (1) the commitment of such Lender
hereunder to continue LIBO Rate Loans or to convert Base Rate Loans to LIBO
Rate Loans shall forthwith be cancelled, and (2) LIBO Rate Loans held by
such Lender then outstanding, if any, shall be converted automatically to Base
Rate Loans at the end of their respective Interest Periods or within such
earlier period as may be required by law. 
In the event

 

36

 

of a
conversion of any LIBO Rate Loan prior to the end of its applicable Interest
Period, the Borrower hereby agrees promptly to pay any Lender affected thereby,
upon demand, the amounts required pursuant to Section 2.14 below,
it being agreed and understood that such conversion shall constitute a
prepayment of a LIBO Rate Loan for all purposes of this Section 2.10.

 

2.11         Funding.

 

Each Lender
shall be entitled to fund all or any portion of its Commitment to make Loans in
any manner it may determine in its sole discretion, including, without
limitation, in the Grand Cayman inter-bank market, the London inter-bank market
and within the United States, but all calculations and transactions hereunder
shall be conducted as though all Lenders actually fund all LIBO Rate Loans
through the purchase of offshore Dollar deposits in the amount of such Lender’s
Commitment of the relevant LIBO Rate Loan with a maturity corresponding to the
applicable Interest Period.

 

2.12         Increased
Costs.

 

(1)           In
the event that any Requirement of Law, or in the governmental or judicial
interpretation or application thereof, or compliance by any Lender with any
request or directive (whether or not having the force of law) issued by any
central bank or other Governmental Authority:

 

(i)            Does or shall subject any Lender to
any Taxes of any kind whatsoever with respect to this Agreement or any Loan, or
change the basis of determining the Taxes imposed on payments to such Lender of
principal, fees, interest or any other amount payable hereunder (except for any
change in the rate of tax on the overall net income of such Lender);

 

(ii)           Does or shall impose, modify or hold
applicable any reserve, capital requirement, special deposit, compulsory loan
or similar requirements against assets held by, or deposits or other
liabilities in or for the account of, advances or loans by, or other credit
extended by, or any other acquisition of funds by, any  office of such Lender which are not otherwise
included in the determination of interest payable on the Obligations; or

 

(iii)          Does or shall impose on such Lender
any other condition;

 

and the result
of any of the foregoing is to increase the cost to such Lender of making,
renewing or maintaining its Commitment or its Loans (as applicable) or to
reduce any amount receivable in respect thereof or the rate of return on the
capital of such Lender or any corporation controlling such Lender, then, in any
such case, the Borrower shall, without duplication of amounts payable pursuant
to Section 2.15, promptly pay to such Lender, upon its written
demand made through the Administrative Agent, any additional amounts necessary
to compensate such Lender for such additional cost or reduced amounts receivable
or rate of return as determined by such Lender with respect to this Agreement
or such Lender’s Commitment or its Loans, so long as such Lender requires
substantially all obligors under other commitments of this type made available
by such Lender to similarly so compensate such Lender.

 

37

 

(2)           If
a Lender becomes entitled to claim any additional amounts pursuant to Section 2.12(1),
it shall promptly notify the Borrower of the event by reason of which it has
become so entitled.  A certificate
specifying the reason for any additional amounts so claimed as payable and
containing the calculation thereof in reasonable detail submitted by a Lender
to the Borrower, accompanied by a certification that such Lender has required
substantially all obligors under other commitments of this type made available
by such Lender to similarly so compensate such Lender, shall constitute prima
facie evidence thereof.

 

(3)           Failure
or delay on the part of any Lender to demand compensation pursuant to Section 2.12(2) shall
not constitute a waiver of such Lender’s right to demand such compensation; provided,
however, such right, if not previously demanded, shall terminate upon repayment
of such Lender’s Loan.

 

2.13         Obligation
of Lenders to Mitigate; Defaulting Lenders; Replacement of Lenders.

 

(1)           As
promptly as reasonably practicable after the officer of any Lender responsible
for administering such Lender’s Commitment becomes aware of any event or
condition that would entitle such Lender to receive payments under Section 2.12
above or Section 2.15 below or to cease maintaining LIBO Rate Loans
under Section 2.10 above, such Lender will use reasonable
efforts:  (i) to maintain its
Commitment or Loans (as applicable) through another lending office of such
Lender or (ii) take such other reasonable measures, if as a result thereof
the additional amounts which would otherwise be required to be paid to such
Lender pursuant to Section 2.12 above or pursuant to Section 2.15
below would be materially reduced or eliminated or the conditions rendering
such Lender incapable of maintaining LIBO Rate Loans under Section 2.10
above no longer would be applicable, and if, as determined by such Lender in
its sole discretion, the maintaining of such LIBO Rate Loans through such other
lending office or in accordance with such other measures, as the case may be,
would not otherwise materially adversely affect such LIBO Rate Loans or the
interests of such Lender.

 

(2)           Anything
contained herein to the contrary notwithstanding, in the event that any Lender,
other than at the direction or request of any regulatory agency or authority
(in which case the provisions of Section 2.10 shall apply),
defaults (a “Defaulting Lender”)
in its obligation to fund (a “Funding
Default”) any Loan (in each case, a “Defaulted Loan”), then (i) during any period during
which a Funding Default exists with respect to such Defaulting Lender, such
Defaulting Lender shall be deemed not to be a “Lender” for purposes of voting
on any matters (including the granting of any consents or waivers) with respect
to any of the Loan Documents; (ii) to the extent permitted by applicable
law, until such time as the Funding Default with respect to such Defaulting
Lender shall have been reduced to zero, (A) any voluntary prepayment of
the Loans shall, if Borrower so directs at the time of making such voluntary
prepayment, be applied to the Loans of other Lenders as if such Defaulting
Lender had no Loans outstanding, and (B) any mandatory prepayment of the
Loans shall, if Borrower so directs at the time of making such mandatory
prepayment, be applied to the Loans of other Lenders (but not to the Loans of
such Defaulting Lender) as if such Defaulting Lender had been repaid all
Defaulted Loans of such Defaulting Lender, it being understood and agreed that
Borrower shall be entitled to retain any portion of any mandatory prepayment of
the Loans that is not paid to such Defaulting Lender solely as a result of the
operation of the provisions of this clause (B); (C) the Loans as at any
date of determination shall be calculated as if such Defaulting Lender had been

 

38

 

repaid all Defaulted Loans of such Defaulting Lender.  No Commitment of any Lender shall be
increased or otherwise affected, and, except as otherwise expressly provided in
this Section 2.13, performance by Borrower of its obligations
hereunder and the other Loan Documents shall not be excused or otherwise
modified as a result of any Funding Default or the operation of this Section 2.13.  The rights and remedies against a Defaulting
Lender under this Section 2.13 are in addition to other rights and
remedies which Borrower may have against such Defaulting Lender with respect to
any Funding Default and which Administrative Agent or any Lender may have
against such Defaulting Lender with respect to any Funding Default.

 

(3)           Anything
contained herein to the contrary notwithstanding, in the event that: (i) (A) any
Lender (an “Increased-Cost Lender”)
shall give notice to Borrower that such Lender is adversely affected under Section 2.10
(other than in circumstances where events subject to such Section generally
affect Lenders) or is entitled to receive payments under Section 2.12
or 2.15 (other than in circumstances where events subject to such
Sections generally entitle Lenders to payment), (B) the circumstances
which have caused such Lender to be so adversely affected or which entitle such
Lender to receive such payments shall remain in effect, and (C) such
Lender shall fail to withdraw such notice within five Business Days after
Borrower’s request for such withdrawal; or (ii) any Lender shall become
and then be a Defaulting Lender; or (iii) in connection with any proposed
amendment, modification, termination, waiver or consent which requires
unanimous approval as contemplated by Section 9.2, the consent of
Required Lenders shall have been obtained but the consent of one or more of
such other Lenders (each a “Non-Consenting
Lender”) whose consent is required shall not have been obtained;
then so long as no Potential Default or Event of Default is then continuing,
with respect to each such Increased-Cost Lender, Defaulting Lender or
Non-Consenting Lender (the “Terminated
Lender”), Borrower may, by giving written notice to Administrative
Agent and any Terminated Lender of its election to do so, elect to cause such
Terminated Lender (and such Terminated Lender hereby irrevocably agrees) to
assign its outstanding Loans and its Commitments, if any, in full to one or
more Eligible Assignees (each a “Replacement
Lender”) in accordance with the provisions of Section 10.8
and Terminated Lender shall pay any fees payable thereunder in connection with
such assignment; provided, (x) on the date of such assignment, the
Replacement Lender shall pay to Terminated Lender an amount equal to the sum of
(1) an amount equal to the principal of, and all accrued interest on, all
outstanding Loans of the Terminated Lender, (2) an amount equal to all
unreimbursed drawings that have been funded by such Terminated Lender, together
with all then unpaid interest with respect thereto at such time and (3) an
amount equal to all accrued, but theretofore unpaid fees owing to such
Terminated Lender pursuant to Section 2.16; (y) on the date of
such assignment, Borrower shall pay any amounts payable to such Terminated
Lender pursuant to Section 2.12 and 2.15; or otherwise as if
it were a prepayment; and (z) in the event such Terminated Lender is a
Non-Consenting Lender, each Replacement Lender shall consent, at the time of
such assignment, to the matter in respect of which such Terminated Lender was a
Non-Consenting Lender in a manner acceptable to the Borrower.  Upon the prepayment of all amounts owing to
any Terminated Lender and the termination of such Terminated Lender’s
Commitments, if any, such Terminated Lender shall no longer constitute a “Lender”
for purposes hereof; provided, any rights of such Terminated Lender to
indemnification hereunder shall survive as to such Terminated Lender.

 

39

 

2.14         Funding
Indemnification.

 

In the event
of (1) the payment of any principal of any LIBO Rate Loan other than on
the last day of an Interest Period applicable thereto (including as a result of
an Event of Default), (2) the conversion of any LIBO Rate Loan other than
on the last day of the Interest Period applicable thereto, (3) the failure
to borrow, convert, continue or prepay any Loan on the date specified in any
notice delivered pursuant hereto, or (4) the assignment of any LIBO Rate
Loan, then, in any such event, the Borrower shall compensate each Lender for
the loss, cost and expense attributable to such event.  In the case of a LIBO Rate Loan, the loss to
any Lender attributable to any such event shall be deemed to include an amount
determined by such Lender to be equal to the excess, if any, of (y) the
amount of interest that such Lender would have accrued on the principal amount
of such Loan for the period from the date of such payment, conversion, failure
or assignment to the last day of the then current Interest Period for such Loan
(or, in the case of a failure to borrow, convert or continue, the duration of
the Interest Period that would have resulted from such borrowing, conversion or
continuation) if the interest rate payable on such deposit were equal to the
Reserve Adjusted LIBO Rate for such Interest Period, over (z) the
amount of interest that such Lender would earn on such principal amount for
such period if such Lender were to invest such principal amount for such period
at the interest rate that would be bid by such Lender (or an affiliate of such
Lender) for Dollar deposits from other banks in the eurodollar market at the
commencement of such period.  A
certificate of any Lender setting forth any amount or amounts that such Lender
is entitled to receive pursuant to this Section 2.14 shall be
delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount
shown as due on any such certificate within 10 days after receipt thereof.

 

2.15         Taxes.

 

(1)           Any
and all payments by or on account of any obligation of the Borrower hereunder
or under any other Loan Document shall be made free and clear of and without
deduction for any Indemnified Taxes or Other Taxes; provided that if the
Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from
such payments, then (i) the sum payable shall be increased as necessary so
that after making all required deductions (including deductions applicable to
additional sums payable under this Section 2.15) the Administrative
Agent or Lender (as the case may be) receives an amount equal to the sum it would
have received had no such deductions been made, (ii) the Borrower shall
make such deductions and (iii) the Borrower shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable
law.

 

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

 

(3)           The
Borrower shall indemnify the Administrative Agent and each Lender, within ten (10) Business
Days after written demand therefor, for the full amount of any Indemnified
Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section 2.15)
paid by the Administrative Agent or such Lender, as the case may be, and any
penalties, interest (except to the extent such penalties and/or interest arise
as a result of a Lender’s delay in dealing with any 

 

40

 

such
Indemnified Tax) and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such
payment or liability delivered to the Borrower by a Lender or by the
Administrative Agent on its own behalf or on behalf of a Lender, shall be
conclusive absent manifest error.

 

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

 

(5)           Each
Foreign Lender shall deliver to the Borrower (with copies to the Administrative
Agent) on or before the date hereof (or in the case of a Foreign Lender who
became a Lender by way of an assignment, on or before the date of the
assignment) or at least five (5) Business Days prior to the first date for
any payment herewith to such Lender, and from time to time as required for
renewal under applicable law, such certificates, documents or other evidence,
as required by the Code or Treasury Regulations issued pursuant thereto,
including, without limitation, Internal Revenue Service Form W-8BEN or
W-ECI, as appropriate, and any other certificate or statement of exemption
required by Section 871(h) or Section 881(c) of the Code or
any subsequent version thereof, properly completed and duly executed by such
Lender establishing that payments to such Lender hereunder are not subject to
withholding under the Code (“Evidence of No Withholding”).  Each Foreign Lender shall promptly notify the
Borrower and the Administrative Agent of any change in its applicable lending
office and upon written request of the Borrower or the Administrative Agent
shall, prior to the immediately following due date of any payment by the
Borrower hereunder or under any other Loan Document, deliver Evidence of No
Withholding to the Borrower and the Administrative Agent.  The Borrower shall be entitled to rely on
such forms in its possession until receipt of any revised or successor form
pursuant to this Section 2.15(5). 
If a Lender fails to provide Evidence of No Withholding as required
pursuant to this Section 2.15(5), then (i) the Borrower (or
the Administrative Agent) shall be entitled to deduct or withhold from payments
to Administrative Agent or such Lender as a result of such failure, as required
by law, and (ii) the Borrower shall not be required to make payments of
additional amounts with respect to such withheld Taxes pursuant to Section 2.15(1) to
the extent such withholding is required solely by reason of the failure of such
Lender to provide the necessary Evidence of No Withholding.

 

2.16         Fees.

 

(1)           Closing Date Fees.  The Borrower agrees to pay to the Agents, for
their respective own accounts, the fee payable to them on the Closing Date as
set forth in the Fee Letter.

 

(2)           Administrative Agent Fee. The
Borrower agrees to pay to the Administrative Agent, for its own account, fees
payable in the amounts and at the times set forth in the Fee Letter.

 

41

 

(3)           Payment of Fees.  All fees payable hereunder shall be paid on
the dates due, in immediately available funds, to the Administrative Agent for
distribution, in the case of the Closing Date Fee, to the parties entitled
thereto.  Fees paid shall not be
refundable under any circumstances.

 

2.17         Credit
Support.

 

(1)           Guaranties. 
As credit support for the Obligations, on or before the Closing Date,
the Guarantors shall execute and deliver to the Administrative Agent the
Guaranty.

 

(2)           Pledge Agreements. 
As credit support for the Obligations, on or before the Closing Date,
the Pledgor shall execute and deliver to the Administrative Agent the Pledge
Agreement.

 

(3)           Borrower Security Documents. 
As collateral security for the Obligations, on or before the Closing
Date, the Borrower shall execute and deliver to the Administrative Agent the
Security Instruments.

 

(4)           Assignments. 
As collateral security for the Obligations, on or before the Closing
Date, the Borrower shall execute and deliver to the Administrative Agent a first
priority assignment of the Required Interest Rate Contracts, the Assignment of
Contracts and the Assignment of Leases and Rents.

 

(5)           Preferential
Payments.  Notwithstanding anything
to the contrary contained in this Agreement or in any other Loan Document, if
any amount paid on account of the Obligations is subsequently invalidated,
declared to be fraudulent or preferential, set aside or required to be repaid
by any Lender or the Administrative Agent or paid over to a trustee, receiver
or any other entity, whether under any bankruptcy act or otherwise (such
payment, a “Preferential Payment”), then, to the extent of such
Preferential Payment, the Obligations or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such
payment had not been made.

 

ARTICLE III

CONDITIONS PRECEDENT

 

3.1           Conditions to Initial Funding of
Loans.  As conditions precedent to
the agreement of the Lenders to fund their respective Initial Funding as of the
date hereof:

 

(1)           The
Borrower shall have delivered or shall have caused to be delivered to the
Administrative Agent, in form and substance satisfactory to the Lenders and
their counsel and duly executed by the appropriate Persons (with sufficient
copies for each of the Lenders), each of the following:

 

(i)            This Agreement;

 

(ii)           To the extent requested by any Lender
pursuant to this Section 3.1, a Note
payable to such Lender;

 

42

 

(iii)          The Guaranty;

 

(iv)          The Pledge Agreement;

 

(v)           The Security Instruments;

 

(vi)          For each Required Interest Rate
Contract, the Assignment of Interest Rate Contract, the Interest Rate Contract
and the Acknowledgment;

 

(vii)         The Environmental Indemnity;

 

(viii)        The Assignment of Contracts;

 

(ix)           The Assignment of Leases and Rents;

 

(x)            [Reserved]

 

(xi)           Deposit Account Control Agreements as
required under Section 4.29 and an Account Agreement as required
under Section 5.15;

 

(xii)          Evidence that the UCC financing statements relating to the Security
Instruments, this Agreement and any other Loan Documents constituting a
security agreement under the UCC have been delivered to the Title Company or a
UCC filing service acceptable to Agents for filing in the applicable
jurisdictions;

 

(xiii)         The
Title Policies issued by the Title Company and dated as of the Closing
Date.  Such Title Policies shall (i) provide
coverage in an amount equal to 100% of the Facility, (ii) insure that the Security Instruments create a valid, first
priority Lien on the Mortgaged Property, free and clear of all exceptions from
coverage other than Permitted Encumbrances and standard exceptions and
exclusions from coverage (as modified by the terms of any endorsements), (iii) contain
the endorsements and affirmative coverages as Agents may reasonably request to
the extent available in the State of Nevada, and (iv) name Administrative
Agent as the insured.  Agents also shall
have received evidence that all premiums in respect of such Title Policies have
been paid.  Agents shall have received evidence
that all appropriate releases or discharges of encumbrances necessary for the
delivery of the Title Policies have been delivered for recording.  In addition, Agents shall have received
evidence of Borrower’s ownership of the Mortgaged Property in the form of owner’s
title policies insuring Borrower’s title to the Mortgaged Property, which title
policies shall be in form and substance, and issued by a title insurance
company (with appropriate reinsurance or coinsurance), reasonably satisfactory
to Agents;

 

(xiv)        A
current Survey for each Real Property, containing the survey certification
substantially in the form attached hereto as Exhibit Q.  Each such Survey shall reflect the same legal
description contained in the Title Policies referred to in paragraph (xiii)
above and shall include, among other things, a metes and bounds description or
such other description as is required by Title Company, of the Real Property
depicted therein, any such description to be reasonably satisfactory to Agents.  The surveyor’s seal shall be affixed to the
Survey;

 

43

 

(xv)         Evidence
that each Real Property is in material compliance with all zoning requirements
and evidence regarding the
current entitlement status of each Real Property with respect to its, and the
steps to be taken to fully entitle such Real Property for, development
as a hotel-casino;

 

(xvi)        An Appraisal for each Real Property;

 

(xvii)       Valid
certificates of insurance for the policies of insurance required hereunder,
satisfactory to Agents in their sole discretion, and evidence of the payment of
all insurance premiums currently due and payable for the existing policy
period;

 

(xviii)      Use commercially reasonable efforts to
deliver tenant estoppel certificates and subordination agreements with respect
to those Approved Leases listed on Schedule 3.1(1), substantially in the form
attached hereto as 

Exhibits D-1 and D-2;

 

(xix)         Current judgment, bankruptcy, UCC,
litigation and tax lien searches showing no material monetary encumbrances with
respect to the Property or material liabilities of Borrower or the other
Borrower Parties other than as contemplated by the Loan Documents;

 

(xx)          Evidence that the terms of the Loan
Documents do not breach or conflict with any Material Agreement;

 

(xxi)         A certificate of the Secretary or
Assistant Secretary of the general partner, manager or managing member or
another Responsible Officer of those Borrower Parties which are partnerships or
limited liability companies attaching copies of resolutions duly adopted by the
Board of Directors of such general partner, manager or managing member or
members, managers or partners of the applicable Borrower Party, as required by
the applicable Organizational Documents, approving the execution, delivery and
performance of the Loan Documents to which such Borrower Parties are party on
behalf of such Borrower Parties and certifying the names and true signatures of
the officers of such Borrower Party or of such general partner, manager or
managing member of the applicable Borrower Party authorized to sign the Loan
Documents to which such Borrower Parties are party on behalf of such Borrower
Parties;

 

(xxii)        A certificate or certificates of the
Secretary or an Assistant Secretary or another Responsible Officer of those
Borrower Parties which are corporations attaching copies of resolutions duly
adopted by the Board of Directors of such Borrower Parties approving the
execution, delivery and performance of the Loan Documents to which such
Borrower Parties are party and certifying the names and true signatures of the
officers of each of such Borrower Parties authorized to sign the Loan Documents
to which such Borrower Parties are party on behalf of such Borrower Parties;

 

(xxiii)       Opinions of counsel for the Borrower
Parties, in form and substance reasonably acceptable to the Administrative
Agent and the Lenders;

 

(xxiv)       In
connection with each of the Required Interest Rate Contracts, an Opinion of
Counsel from counsel (which counsel may be in-house counsel for the 

 

44

 

Acceptable
Counterparty) for the Acceptable Counterparty upon which Agents, Lenders and
their respective successors and assigns may rely, under New York law and, if
the Counterparty is a non-U.S. entity, the applicable foreign law, in a form
approved by Agents;

 

(xxv)        Copies of the Organizational Documents
of each of the Borrower Parties, certified, with respect to the formation
documents, by the Secretary of State of the state of formation of such Person
as of a recent date, and certified by an Officer’s Certificate as to the other
Organizational Documents;

 

(xxvi)       A certificate of authority and good
standing or analogous documentation as of a recent date for each of the
Borrower Parties, for each state in which such Person is organized, formed or
incorporated, as applicable, and each state with respect to which the failure
to be in good standing will have or is reasonably likely to have a Material
Adverse Effect with respect to such Person;

 

(xxvii)      From a Responsible Officer of each of the
Borrower Parties, a Closing Certificate dated as of the Closing Date;

 

(xxviii)     Confirmation from the Administrative Agent
that all fees required to be paid by the Borrower on or before the Closing Date
(including pursuant to the Fee Letter) have been, or will upon the funding of
the Loans be, paid in full;

 

(xxix)       A complete and accurate copy of the most
recent unaudited financial statements of Station Casinos, Inc., certified
by a Responsible Financial Officer;

 

(xxx)        Pro forma financial statements for the
Borrower as at the Closing Date, and reflecting the consummation of the
financings and the other transactions contemplated by the Loan Documents to
occur on or prior to the Closing Date, which pro forma financial statements
shall be in form and substance satisfactory to the Administrative Agent; and

 

(xxxi)       Evidence satisfactory to the
Administrative Agent that all reasonable costs and expenses of the
Administrative Agent and the Lenders, including, without limitation, fees of
outside counsel and fees of third party consultants and appraisers, required to
be paid by the Borrower on or prior to the Closing Date have been, or will upon
the funding of the Loans be, paid in full.

 

(2)           Each
of the requirements set forth on Schedule 3.1(2) attached hereto
shall have been met to the satisfaction of the Administrative Agent and the
Lenders.

 

(3)           The
Borrower shall have established the Interest Reserve Account in accordance with
Section 5.15 of this Agreement.

 

(4)           All
representations and warranties of the Borrower Parties set forth herein and in
the other Loans Documents shall be accurate and complete in all material
respects as if made on and as of the Closing Date (unless any such
representation and warranty speaks as of a particular date, in which case it
shall be accurate and complete in all material respects as of such date).

 

45

 

(5)           There
shall not have occurred and be continuing as of the Closing Date any Event of Default
or Potential Default.

 

(6)           All
acts and conditions (including, without limitation, the obtaining of any third
party consents and necessary regulatory approvals and the making of any
required filings, recordings or registrations) required to be done and
performed and to have happened precedent to the execution, delivery, recording,
filing and performance of the Loan Documents by each of the Borrower Parties
shall have been done and performed.

 

(7)           All
documentation, including, without limitation, documentation for corporate and
legal proceedings in connection with the transactions contemplated by the Loan
Documents shall be satisfactory in form and substance to the Administrative
Agent, the Lenders and their counsel.

 

3.2           Outside Closing Date.  If all conditions precedent set forth in Section 3.1
above shall not have been met to the satisfaction of the Administrative Agent
and the Lenders on or before February 15, 2008, then the agreement of the
Lenders to fund their respective Pro Rata Shares of the Loans shall terminate
and this Agreement shall automatically be deemed of no further force or effect
(except to the extent terms and provisions of this Agreement specifically
provide that they shall survive termination hereof).

 

3.3           Conditions Precedent to Each
Subsequent Loan.

 

(1)           Request for Advance .  With respect to any Loan, other than the
Initial Funding, the Administrative Agent shall have received a duly executed
Advance Request.

 

(2)           Conditions to Advance.  The obligation of each Lender to make a Loan
on the occasion of any new Advance (other than the Initial Funding), is subject
to the satisfaction of the following conditions:

 

(i)            The representations and warranties
of the Borrower set forth in this Agreement and in the other Loan Documents
shall be true and correct in all material respects (subject to updates as
approved by the Administrative Agent) on and as of the date of such new Advance
(or, if any such representation or warranty is expressly stated to have been
made as of a specific date, as of such specific date);

 

(ii)           At the time of and immediately after
giving effect to a new Advance, no Potential Default or Event of Default shall
have occurred and be continuing;

 

(iii)          Not less than thirty (30) days prior
to the Credit Date set forth in the Advance Request, Borrower shall have
delivered to Administrative Agent with respect to the Adjacent Parcels
contemplated to be acquired using the proceeds of the requested Advance, all of
which deliveries shall be satisfactory to the Administrative Agent:  (a) a description of such Adjacent
Parcels sufficient to obtain a Title Policy for such Adjacent Parcels, (b) 
a map and site plan, including an existing Survey of such Adjacent Parcels
dated not more than six (6) months prior to such submission, (c) a copy
of the proposed amendments to the Loan Documents to include such Adjacent
Parcels, (d) use commercially reasonable efforts to obtain tenant estoppel
certificates and tenant subordination and non-disturbance agreements for each 

 

46

 

tenant under
any Leases affecting such Adjacent Parcels which will not expire on or prior to
the date that is six (6) months before the Maturity Date and is not
terminable without cost to Borrower upon not more than sixty (60) days notice
to tenant, or is otherwise not on terms and conditions similar to the Existing
Leases (a “Long-Term Adjacent Parcel Lease”), in each case in form and
substance satisfactory to Administrative Agent, together with any consents
required with respect to the contemplated transactions, (e) a commitment
from the Title Company with respect to the issuance of a Title Policy, together
with copies of all exceptions referenced therein, (f) upon the reasonable
request of the Administrative Agent, a PML study, (g) an Appraisal
acceptable to Agents, (h) a copy of the flood certification, (i) either
(A) a letter or other evidence with respect to such Adjacent Parcels from
the appropriate Governmental Authorities concerning compliance with applicable
zoning and building laws, (B) an ALTA 3.1 zoning endorsement for the Title
Policy or (C) a zoning report prepared by PZR indicating that such
Adjacent Parcels are in material compliance with applicable zoning and building
laws, (j) evidence that each of such Adjacent Parcels constitutes one (1) or
more separate tax lots, which evidence shall be reasonably satisfactory in form
and substance to Administrative Agent (evidence of a
separate tax lot endorsement for the Title Policy shall be evidence reasonably
satisfactory in form and substance to Administrative Agent), (k) evidence
reasonably satisfactory to Lenders and their insurance consultant(s) of
insurance policies covering such Adjacent Parcels satisfying all of the
requirements of this Agreement, and (l) UCC, bankruptcy, state and federal
tax lien, litigation and judgment searches conducted by a search firm
reasonably acceptable to the Lenders with respect to the title holder of such
Adjacent Parcels on the date immediately prior to acquisition thereof by
Borrower, in each of the locations reasonably specified by the Lenders and not
revealing any Liens other than Permitted Encumbrances.

 

(iv)          Administrative Agent shall have
received at least thirty (30) days prior to the Credit Date set forth in the
Advance Request true, accurate, correct and complete copies of all Long-Term
Adjacent Parcel Leases and all related documents; and Administrative Agent
shall have determined that each such Long-Term Adjacent Parcel Lease contains
customary business terms and is in form and substance acceptable to the
Administrative Agent, in its reasonable discretion.  Administrative Agent shall have received a
current certified rent roll for the Adjacent Parcels;

 

(v)           Administrative Agent shall have
received at least thirty (30) days prior to the Credit Date set forth in the
Advance Request, and  reviewed and
approved all material agreements relating to or affecting the Adjacent Parcels
or by which the Adjacent Parcels are bound;

 

(vi)          Administrative Agent shall have
received at least thirty (30) days prior to the Credit Date set forth in the
Advance Request a Phase I environmental assessment report, conducted under the
ASTM International Standard Practice for
Environmental Site Assessments:  Phase I
Environmental Site Assessment Process E1527-05, issued by a
recognized environmental consultant which report shall be dated not more than
six (6) months prior to the Credit Date set forth in the Advance Request
and which report shall be reasonably satisfactory to Agents;

 

47

 

(vii)         Administrative Agent shall have
received at least thirty (30) days prior to the Credit Date a duly executed
copy of the purchase and sale agreement for such Adjacent Parcels and copies of
all proposed documentation transferring title to such Adjacent Parcels to
Borrower including any interim transfers to its Affiliates, which purchase and
sale agreement shall (a) not impose any liabilities or other obligations
on Borrower that might cause Borrower to cease to be a Single Purpose Entity, (b) not
contain any provisions that conflict with the requirements of this Agreement or
any of the other Loan Documents, (c) evidence that Borrower will acquire
title to such Adjacent Parcels in fee simple, and (d) otherwise be in form
and substance reasonably satisfactory to Administrative Agent;

 

(viii)        Administrative Agent shall have
confirmed to its reasonable satisfaction that all material governmental and
third party approvals (including any required gaming approvals) required for
Borrower to consummate the acquisition of such Adjacent Parcels and the
borrowing of the requested Advanced have been secured;

 

(ix)           Administrative Agent shall have
determined to its satisfaction that, before and after giving effect to the
requested Advance and the acquisition of such Adjacent Parcels, the LTV Ratio
shall not exceed forty percent (40%);

 

(x)            Borrower shall permit the Lenders at
all reasonable times and upon reasonable prior notice to make an inspection of
such Adjacent Parcels;

 

(xi)           Delivery to Administrative Agent of
favorable original opinions of counsel or updates thereto in connection with
the Adjacent Parcels similar in form and substance to the opinions which were
delivered on the Closing Date in connection with the Real Property, reasonably
satisfactory to Lenders and addressed to the Administrative Agent on behalf of
the Lenders;

 

(xii)          Delivery of original updated
Organizational Documents of each of the Borrower Parties, including, but not
limited to a current certificate of good standing; delivery of appropriate
evidence of the authorization of the applicable Borrower Parties approving the
execution, delivery and performance of the Loan Documents or amendments thereto
being executed and delivered in connection with the acquisition of the Adjacent
Parcels, duly adopted by the applicable Borrower Parties and accompanied by an
Officer’s Certificate stating that such authorizations have not been altered or
repealed and are in full force and effect, and certifying as to the names of
the Persons authorized to sign on behalf of such parties, together with the
true signatures of each such Person;

 

(xiii)         Delivery of the insurance certificates
with respect to the Adjacent Parcels required hereunder;

 

(xiv)        Delivery to Administrative Agent of
originals of the following Loan Documents or amendments thereto:  (a) a valid and recordable agreement or
amendment spreading the Lien of the applicable Security Instrument to encumber
the Adjacent Parcels, duly executed and acknowledged by Borrower (the “Mortgage
Spreader Agreement”); (b) a first priority Assignment of Leases and
Rents (or amendment to the existing Assignment of Leases and Rents), from Borrower, as assignor, to Administrative
Agent, as assignee, assigning to 

 

48

 

Administrative Agent all of Borrower’s interest in and to the Leases,
rents and security deposits as security for the Loans with
respect to the Adjacent Parcels, duly executed and acknowledged by Borrower; (c) a
first priority Assignment of Contracts (or an amendment to the existing
Assignment of Contracts), from Borrower, as assignor, to Administrative Agent,
as assignee, with respect to the contracts relating to or affecting the
Adjacent Parcels or by which the Adjacent Parcels are bound, duly executed by
Borrower; (d) UCC financing statements (Form UCC-1) (or other forms
required in any jurisdiction), covering all fixtures and other personal
property with respect to the Adjacent Parcels, and all proceeds thereof, naming
Borrower as debtor and Administrative Agent as secured party (together with the
documents described in the foregoing clauses (a), (b) and (c) of
this Section 3.3(2)(xv), the “Security Documents”); (e) a
new Title Policy or endorsements to the existing Title Policy, as applicable,
issued by the Title Company in an amount equal to the purchase price for the
Adjacent Parcels (or, if the Title Company issues a tie-in
endorsement between the Title Policy for the Adjacent Parcels and the existing
Title Policy in form and substance reasonably acceptable to Administrative
Agent, in an amount equal to 100% of the Allocated Loan Amount for the Adjacent
Parcels), reflecting the addition of each such Adjacent Parcel and
containing such affirmative coverage similar in form and substance to the
affirmative coverage provided in the existing Title Policy, insuring that the
Mortgage Spreader Agreement creates a valid first lien on Borrower’s fee title
in the Adjacent Parcels subject to the Permitted Encumbrances (for purposes of
this Section 3.3(2)(xv), the Permitted Encumbrances described in clause (b) of
the definition thereof shall mean the exceptions to title identified in the
title commitment for the Adjacent Parcels delivered by Borrower pursuant to Section 3.3(2)(iii)(g) that
shall have been approved by Administrative Agent), and insuring the perfected
first priority interest of Administrative Agent pursuant to the Mortgage
Spreader Agreement, and further (i) insuring the priority of the Security
Instruments over all intervening Liens on the Real Properties including,
without limitation, all mechanics’ or materialmen’s Liens for work performed or
material supplied to the date of the funding of the new Advance, (ii) disclosing
no matters affecting title to the Real Properties other than Permitted
Encumbrances, and (iii) if required by Administrative Agent, containing
affirmative insurance that covenants and restrictions, if any, recorded against
the Real Properties have not been violated by any Improvements; together with
any title insurance premiums, fees or charges due in connection therewith, and
the Borrower shall cooperate with Administrative Agent and execute such further
instruments and documents and perform such further acts as Administrative Agent
or the Title Company shall reasonably request to carry out the creation and
perfection of the liens and security interests contemplated by the Security
Documents and the release, discharge and removal of any encumbrances required
for the issuance of the Title Policy; (f) updates to any of the other Loan
Documents and the Exhibits and Schedules thereto, as applicable; (g) a
Confirmation of Guaranty in customary form duly executed and delivered by
Guarantors, adding the Adjacent Parcels to and affirming their obligations
under the Guaranty; and (h) a Confirmation of Pledge in customary form
duly executed and delivered by Pledgor, reflecting the addition of the Adjacent
Parcels as collateral for the Facility and affirming its obligations under the
Pledge Agreement;

 

(xv)         Delivery to Administrative Agent for
deposit into the Interest Reserve of funds sufficient to cause the amount on
deposit in the Interest Reserve to equal the Minimum Balance (taking into
account the new Advance);

 

49

 

(xvi)        At the time of each new Advance, a
Responsible Officer shall certify that (A) no Potential Default or Event
of Default shall have occurred and be continuing; (B) the representations
and warranties set forth in Article IV are true, accurate, correct
and complete in all material respects (subject to updates as approved by
the Administrative Agent) on and as of the date of such new Advance as though made on and
as of such date (or, if any such representation or warranty is expressly stated
to have been made as of a specific date, as of such specific date),
before and after giving effect to the new Advance and to the application of the
proceeds therefrom; and (C) after giving effect to such new Advance and to
the application of the proceeds therefrom, the Borrower Parties remain in
compliance with the covenants set forth in Articles
V and VI, including supporting
documentation reasonably satisfactory to the Administrative Agent;

 

(xvii)       Each new Advance shall be deemed to
constitute a representation and warranty by the Borrower on the date thereof as
to the matters specified in the preceding Section 3.3(2)(xvi); and

 

(xviii)      Borrower shall pay for any and all
reasonable out-of-pocket costs and expenses of Administrative Agent and the
Lenders incurred in connection with the proposed acquisition of such Adjacent
Parcels and the related Advance, including 
reasonable attorneys’ fees and disbursements, all title insurance
premiums for any endorsements to any existing Title Policy (or new Title
Policy) reasonably required by Lenders in connection with such proposed
acquisition, title premiums, mortgage recording taxes, transfer taxes and
recording fees.  In addition, Borrower
shall deliver to Lenders evidence reasonably satisfactory to Lenders that all
amounts owing to any parties in connection with the transactions relating to
the proposed acquisition have been paid in full, or will simultaneously be paid
in full on the Credit Date or adequate reserves therefor are established by
Borrower in cash with respect to contingent or other liabilities that may arise
out of such transaction and for which Borrower is not adequately indemnified or
insured against as reasonably determined by Lenders.

 

(3)           Additional Matters.  The Administrative Agent shall have received
such additional documents, information and materials as any Lender, through the
Administrative Agent, may reasonably request, provided such requests are
customary and are consistent with the deliveries required with respect to the
Real Properties on the Closing Date.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

 

As an
inducement to the Administrative Agent and each Lender to enter into this
Agreement, and for the Lenders to advance their respective Pro Rata Shares of
the Loans, except as set forth on the schedule of exceptions attached hereto as
Schedule 4 hereto, the Borrower represents and warrants as follows as of
the Closing Date and as of the date of any subsequent Credit Date:

 

4.1           Financial
Condition.

 

(1)           The
financial statements of each of the Borrower and Station Casinos, Inc.
most recently delivered by Borrower pursuant to this Agreement, as at the date
to which such 

 

50

 

statements apply, fairly present the financial condition of each such
Person as at such date and the results of the operations of each such Person
for the period ended on such date, all in conformity with GAAP.

 

(2)           Except
as set forth on Schedule 4.1, the Borrower does not have any material
obligation, material contingent liability or material liability for taxes,
material long-term leases or unusual forward or long-term material commitment
that is not otherwise permitted by this Agreement.

 

4.2           No Material Adverse Effect.  Since February 7, 2008, as to each of
Borrower and Pledgor, and since September 30, 2007, as to each Guarantor,
no event has occurred which has resulted in, or is reasonably likely to have, a
Material Adverse Effect or a Property Material Adverse Effect.

 

4.3           Compliance with Laws.  Borrower is in compliance with all
Requirements of Law and is not in default or in violation of any order, writ,
injunction, decree or demand of any Governmental Authority, except where the
failure to do so or such default, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect or a Property
Material Adverse Effect.  To the
Knowledge of the Borrower, there are no Requirements of Law applicable to any
Borrower Party the compliance with which by such Borrower Party would, in the
aggregate, have a Material Adverse Effect or a Property Material Adverse
Effect.  There has not been committed by
Borrower any act or omission affording the federal government or any other
Governmental Authority the right of forfeiture as against any Mortgaged
Property or any part thereof or any monies paid in performance of Borrower’s
obligations under any of the Loan Documents.

 

4.4           Organization,
Powers; Authorization; Enforceability.

 

(1)           Each
Borrower Party (A) is either a corporation, a limited partnership or a
limited liability company duly incorporated, formed or organized, validly
existing, and in good standing under the laws of the state of its
incorporation, organization and/or formation, (B) is duly qualified to do
business and is in good standing under the laws of each jurisdiction in which
the failure to be so qualified and in good standing will have or is reasonably
expected to have a Material Adverse Effect, and (C) has all requisite
corporate, partnership or limited liability company power and authority to own,
operate and encumber its Property and to conduct its business as presently
conducted and as proposed to be conducted in connection with and following the
consummation of the transactions contemplated by this Agreement.  Borrower is a partnership for purposes of
federal income taxation and for purposes of the tax laws of any state or
locality in which it is subject to taxation based on its income.

 

(2)           True,
correct and complete copies of the Organizational Documents of each of the
Borrower Parties have been delivered to the Administrative Agent and have not
been Modified except to the extent indicated therein.  All of the Organizational Documents are in
full force and effect, and there are no defaults under such Organizational
Documents (including with respect to any restrictions on Indebtedness contained
therein), and no events which, with the passage of time or giving of notice or
both, would constitute a default under such Organizational Documents (including
with respect to any restrictions on Indebtedness contained therein).

 

51

 

(3)           The
Borrower Parties have the requisite power and authority to execute, deliver and
perform this Agreement and each of the other Loan Documents which are required
to be executed on their behalf.  The
execution, delivery and performance of each of the Loan Documents which must be
executed in connection with this Agreement by any Borrower Party and to which
any Borrower Party is a party and the consummation of the transactions
contemplated thereby are within such Borrower Party’s partnership, company, or
corporate powers, have been duly authorized by all necessary partnership,
company, or corporate action and such authorization has not been rescinded. No
other partnership, company, or corporate action or proceedings on the part of
any Borrower Party is necessary to consummate such transactions.

 

(4)           Each
of the Loan Documents to which any Borrower Party is a party has been duly
executed and delivered on behalf of such Borrower Party and constitutes its
legal, valid and binding obligation, enforceable against it in accordance with
its terms (subject to bankruptcy, insolvency, reorganization, or other laws
affecting creditors’ rights generally and to principles of equity, regardless
of whether considered in a proceeding in equity or at law), is in full force
and effect and all the terms, provisions, agreements and conditions set forth
therein and required to be performed or complied with by such Borrower Party on
or before the Closing Date have been performed or complied with, and no
Potential Default or Event of Default exists thereunder.

 

4.5           No Conflict.  The execution, delivery and performance of
the Loan Documents, the borrowing hereunder, and the use of the proceeds
thereof, will not violate any material Requirement of Law or any Organizational
Document or any material Contractual Obligation of any Borrower Party; or
create or result in the creation of any Lien on any material assets of any
Borrower Party other than the Liens created by the Loan Documents.

 

4.6           No Material Litigation.  Except as disclosed on Schedule 4.6
hereto, no litigation, investigation or proceeding of or before any arbitrator
or Governmental Authority is pending or, to Borrower’s Knowledge, threatened by
or against any Borrower Party or against any such Person’s Property or revenues
which is likely to be adversely determined and which, if adversely determined,
either individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect or a Property Material Adverse Effect.  The performance of any action by any Borrower Party required or
contemplated by any Loan Documents is not restrained or enjoined (either
temporarily, preliminarily or permanently).

 

4.7           Taxes.  (1)All federal, state, local and foreign income
and franchise and other material Tax returns, reports and similar statements or
filings of the Borrower and its Tax Affiliates 
(collectively, the “Tax Returns”) have been filed with the
appropriate Governmental Authorities in all jurisdictions in which such Tax
Returns are required to be filed, all such Tax Returns are true and correct in
all material respects, and all taxes, charges and other impositions reflected
therein have been paid prior to the date on which any fine, penalty, interest,
late charge or loss may be added thereto for non-payment thereof except to the
extent such Taxes, assessments, fees and other charges of Governmental
Authorities are subject to a Good Faith Contest.  The Borrower Parties have no Knowledge of any
proposed tax assessment against any Borrower Party that will have or is
reasonably likely to have a Material Adverse Effect.  There are no pending or proposed special or
other assessments for public improvements or otherwise 

 

52

 

affecting the Mortgaged Property, nor are there any contemplated
improvements to the Mortgaged Property that may result in such special or other
assessments, which would, individually or collectively have or would be
reasonably likely to have a Property Material Adverse Effect.  Except as set forth on Schedule 4.7,
no Tax Return is under audit or examination by any Governmental Authority and
no notice of such an audit or examination or any assertion of any claim for
Taxes has been received from any Governmental Authority.  Proper and accurate amounts have been
withheld by the Borrower and each of its Tax Affiliates from their respective
employees for all periods in full and complete compliance with the tax, social
security and unemployment withholding provisions of applicable Requirements of
Law and such withholdings have been timely paid to the respective Governmental
Authorities.

 

(2)           Except
as set forth on Schedule 4.7, none of the Borrower or any of its Tax
Affiliates has (i) executed or filed with the IRS or any other
Governmental Authority any agreement or other document extending, or having the
effect of extending, the period for the filing of any Tax Return or the
assessment or collection of any charges, (ii) incurred any obligation
under any tax sharing agreement or arrangement other than those of which the
Administrative Agent has received a copy prior to the date hereof, or (iii) been
a member of an affiliated, combined or unitary group other than the group of
which the Borrower (or its Tax Affiliate) is the common parent.

 

(3)           All
mortgage, mortgage recording, stamp, intangible or other similar Tax required
to be paid by any Person under applicable Requirements of Law currently in
effect in connection with the execution, delivery, recordation, filing,
registration, perfection or enforcement of any of the Loan Documents,
including, without limitation, the Security Instruments, have been paid or have
been collected by the closing agent for payment.

 

4.8           Regulated Entities.  None of the Borrower Parties, nor any Person
Controlling such entities, is an “investment company” or an “affiliated Person”
of, or “promoter” or “principal underwriter” for, or otherwise “controlled” by
an “investment company,” as such terms are defined in the Investment Company
Act of 1940, as amended.  None of the
Borrower and its Subsidiaries (1) is subject to regulation under the
Federal Power Act, the Interstate Commerce Act, any state public utilities
code, or any other Federal or state statute or regulation limiting its ability
to incur Indebtedness, or (2) is a “foreign Person” within the meaning of Section 1445
of the Code.

 

4.9           Borrower Parties.  The Borrower Parties have fully disclosed to
Administrative Agent all material aspects of the ownership structure of the Borrower
Parties and have disclosed to Administrative Agent (1) the correct legal
name of each such Person, the type of organization, and the jurisdiction of its
incorporation or organization, and (2) the class of outstanding Capital
Stock of Borrower along with the percentage thereof owned, directly or
indirectly, by the Borrower Parties. 
None of such issued and outstanding Capital Stock is subject to any
vesting, redemption, or repurchase agreement, and there are no warrants or
options outstanding with respect to such Capital Stock, except as disclosed in Schedule
4.9.

 

4.10         Federal Reserve Board Regulations.  None of the Borrower Parties is engaged or
will engage, principally or as one of its important activities, in the business
of extending credit for the purpose of “purchasing” or “carrying” any “Margin
Stock” within the respective

 

53

 

meanings of such terms under Regulations T, U and X.  No part of the proceeds of the Loans will be
used for “purchasing” or “carrying” “Margin Stock” as so defined or for any
purpose which violates, or which would be inconsistent with, the provisions of,
the Regulations of the Board of Governors of the Federal Reserve System.

 

4.11         ERISA
Compliance.  Except as disclosed on Schedule
4.11:

 

(1)           Each
Plan is in compliance with the applicable provisions of ERISA, the Code and
other federal or state law failure to comply with which would reasonably be
likely to result in a Material Adverse Effect. 
Each Plan which is intended to qualify under Section 401(a) of
the Code has received a favorable determination letter from the IRS and to
Borrower’s Knowledge, nothing has occurred which would cause the loss of such
qualification.

 

(2)           There
are no pending or, to Borrower’s Knowledge, threatened claims, actions or
lawsuits, or action by any Governmental Authority, with respect to any Plan
which has resulted or could reasonably be expected to result in a Material
Adverse Effect.  There has been no
prohibited transaction or violation of the fiduciary responsibility rules with
respect to any Plan which has resulted or could reasonably be expected to
result in a Material Adverse Effect.

 

(3)           No
ERISA Event has occurred or is reasonably expected to occur with respect to any
Pension Plan or, to Borrower’s Knowledge, Multiemployer Plan which has resulted
or could reasonably be expected to result in a Material Adverse Effect.

 

(4)           No
Pension Plan has any Unfunded Pension Liability which has resulted or could
reasonably be expected to result in a Material Adverse Effect.

 

(5)           None
of the Borrower Parties or their respective Subsidiaries, nor any ERISA
Affiliate has incurred, nor reasonably expects to incur, any liability under
Title IV of ERISA with respect to any Pension Plan (other than premiums
due and not delinquent under Section 4007 of ERISA) which has resulted or
could reasonably be expected to result in a Material Adverse Effect.

 

(6)           None
of the Borrower Parties or their respective Subsidiaries, nor any ERISA
Affiliate has incurred nor reasonably expects to incur any liability (and no
event has occurred which, with the giving of notice under Section 4219 of
ERISA, would result in such liability) under Section 4201 or 4243 of ERISA
with respect to a Multiemployer Plan which has resulted or could reasonably be
expected to result in a Material Adverse Effect.

 

(7)           None
of the Borrower Parties or their respective Subsidiaries, nor any ERISA
Affiliate has transferred any Unfunded Pension Liability to any Person or
otherwise engaged in a transaction that is subject to Section 4069 or 4212(c) of
ERISA which has resulted or could reasonably be expected to result in a
Material Adverse Effect.

 

4.12         Assets
and Liens.

 

(1)           Borrower
has good and marketable title to the Mortgaged Property, free and clear of all
Liens whatsoever except the Permitted Encumbrances.  The Mortgaged Property constitutes all of the
Property currently owned, leased or licensed by the Borrower.

 

54

 

(2)           The
Security Instruments, when properly recorded in the appropriate records,
together with any Uniform Commercial Code financing statements required to be
filed in connection therewith, will create (i) a valid, perfected first
mortgage lien on the Real Property and the Improvements, subject only to
Permitted Encumbrances and (ii) perfected security interests in and to,
and perfected collateral assignments of, all personalty (including the Leases),
all in accordance with the terms thereof, in each case subject only to any
applicable Permitted Encumbrances. 
Except as may be indicated in and insured over by the Title Policies, to
the Borrower’s Knowledge there are no claims for payment for work, labor or
materials affecting the Mortgaged Property which are or may become a lien prior
to, or of equal priority with, the Liens created by the Loan Documents.  None of the Permitted Encumbrances will have
a material adverse affect on the Mortgaged Property which they encumber.  Except for Released Property released in
accordance with Section 6.4(3)(iii) hereto, Borrower shall
preserve its right, title and interest in and to the Mortgaged Property for so
long as any Obligations remain outstanding and will warrant and defend same and
the validity and priority of the Lien of the Security Instruments from and
against any and all claims whatsoever other than the Permitted Encumbrances.

 

4.13         Securities Acts.  Borrower has not issued any unregistered
securities in violation of the registration requirements of Section 5 of
the Securities Act of 1933 (as amended from time to time, the “Act”) or
any other law, nor is Borrower in violation of any rule, regulation or
requirement under the Act, or the Securities Exchange Act of 1934 (as amended
from time to time) other than violations which could not reasonably be expected
to have a Material Adverse Effect. 
Borrower is not required to qualify an indenture under the Trust
Indenture Act of 1939 (as amended from time to time) in connection with its
execution and delivery of this Agreement or the incurrence of Indebtedness
hereunder.

 

4.14         Consents, Etc.  Except as disclosed in Schedule 4.14,
no consent, approval or authorization of, or registration, declaration or
filing with any Governmental Authority or any other Person is required (1) in
connection with the execution and delivery of the Loan Documents by the
Borrower Parties; or (2) the performance of or compliance with the terms,
provisions and conditions of the Loan Documents by such Persons, other than
those that have been obtained, copies of which have been or will be delivered
to the Administrative Agent pursuant to Section 3.1, and each of
which on the Effective Date will be in full force and effect.

 

4.15         Hazardous Materials.  The Borrower has provided copies of the Phase
I and the other environmental assessments as set forth in Schedule 4.15
to the Administrative Agent.  Except as
otherwise disclosed in the assessments listed on Schedule 4.15: (1) during
the period of ownership of any Mortgaged Property by any of  Borrower or Borrower’s Affiliates, such
Mortgaged Property (or any portion thereof) has not been used for the purpose
of, or in any way involving, the handling, manufacture, treatment, storage,
use, generation, release, discharge, refining, dumping or disposal of any
Hazardous Materials on, under, in or about the Mortgaged Property, or
transporting any Hazardous Materials to, from or across the Mortgaged Property,
in each case, in a manner that would reasonably be expected to have a Property
Material Adverse Effect, and to the Borrower’s Knowledge, no such use occurred
at any time prior to the period of ownership of such Mortgaged Property by any
of Borrower or Borrower’s Affiliates; (2) Borrower has obtained all
material environmental, health and safety permits and licenses necessary for
their respective operations, and all such permits are in good standing and the
holder of each such permit is currently in compliance with all terms and
conditions of such permits, 

 

55

 

except for any such failure to obtain, maintain in good standing or
comply that would not reasonably be expected to have a Property Material
Adverse Effect; (3) none of the Mortgaged Property is listed or, to the
Borrower’s knowledge, proposed for listing on the National Priorities List (“NPL”)
pursuant to CERCLA or on the Comprehensive Environmental Response Compensation
Liability Information System List (“CERCLIS”) or any similar applicable
state list of sites requiring remedial action under any Hazardous Materials
Laws; (4) none of Borrower or Borrower’s Affiliates which previously held
title to the Mortgaged Property has sent or directly arranged for the transport
of any hazardous waste to any site listed or, to the Borrower’s knowledge,
proposed for listing on the NPL, CERCLIS or any similar state list, where any
such arrangement for transportation would reasonably be expected to have a
Property Material Adverse Effect; and (5) to the Borrower’s Knowledge,
there is not now on or in any Mortgaged Property: (i) any landfill or
surface impoundment; (ii) any underground storage tanks; (iii) any
asbestos-containing material; or (iv) any polychlorinated biphenyls (PCB),
which in the case of any of clauses (i) through (iv) the presence of
which would reasonably be expected to have a Property Material Adverse Effect.

 

Except as
otherwise disclosed in the assessments listed on Schedule 4.15, (x) to
Borrower’s Knowledge, no Hazardous Materials are presently constructed,
deposited, stored, or otherwise located on, under, in or about the Mortgaged
Property in amounts or concentrations that would reasonably be expected to have
a Property Material Adverse Effect; (y) to Borrower’s Knowledge, no
Hazardous Materials have migrated from the Mortgaged Property upon or beneath
other properties which would reasonably be expected to result in material
liability for Borrower; and (z) to Borrower’s Knowledge, no Hazardous
Materials have migrated or threaten to migrate from other properties upon,
about or beneath the Mortgaged Property which would reasonably be expected to
result in material liability for Borrower, except for any such liability that
would not reasonably be expected to have a Property Material Adverse Effect.

 

4.16         Intellectual Property.  The Borrower owns or is licensed or otherwise
has the right to use all of the patents, trademarks, service marks, trade names
and copyrights that are necessary for the operation of its businesses, without
any conflict with the rights of any other Person that could reasonably be
expected to have a Material Adverse Effect. 
To Borrower’s Knowledge, no slogan or other advertising device, product,
process, method, substance, part or other material now employed, or now
contemplated to be employed, by the Borrower infringes upon any rights held by
any other Person.

 

4.17         Insurance.  Schedule 4.17 accurately describes the
insurance coverages for the Borrower as of the Closing Date.  Such insurance coverages are currently in
full force and effect and in compliance with the applicable requirements of Section 5.5.  The Borrower has obtained and delivered to
the Administrative Agent evidence of all insurance policies as required under Section 5.5.  The Borrower has not, and to the Borrower’s
Knowledge no Person has, done by act or omission anything that would impair the
coverage of any such policy.

 

4.18         Full Disclosure.  The information provided to the
Administrative Agent and the Lenders by or on behalf of the Borrower Parties
relating to such Persons and the transactions contemplated under the Loan
Documents does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements contained therein or
herein not materially misleading.

 

56

 

4.19         Brokers.  None of the Borrower Parties has dealt with
any broker or finder with respect to the transactions embodied in this
Agreement and the other Loan Documents.

 

4.20         No
Default.  No Potential Default or
Event of Default has occurred and is continuing.

 

4.21         Solvency.  After giving effect to the Loans, and the
disbursement of the proceeds thereof pursuant to the Borrower’s instructions,
the Borrower Parties shall each be Solvent. 
None of the Borrower Parties is contemplating either the filing of a
petition by it under any state or federal bankruptcy or insolvency laws or the
liquidation of all or a major portion of such entity’s assets or property, and
no Borrower Party has any Knowledge of any Person contemplating the filing of
any such petition against it or against any other Borrower Party.

 

4.22         Contractual
Obligations.  None of the Borrower
Parties is a party to any Contractual Obligation which is reasonably likely to
have a Material Adverse Effect or a Property Material Adverse Effect.  None of the Borrower Parties is in default in
any respect in the performance, observance or fulfillment of any of its
Contractual Obligations, which default is reasonably likely to have a Material
Adverse Effect or a Property Material Adverse Effect.  Borrower does not have any material financial
obligation (contingent or otherwise) under any indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument to which it is a party
or by which it or any Mortgaged Property is otherwise bound, other than (1) obligations
incurred in the ordinary course of the operation of the Mortgaged Property, (2) Permitted
Encumbrances, and (3) obligations under the Loan Documents.

 

4.23         Representations
Regarding the Mortgaged Property.

 

(1)           Condemnation and Casualty.  No Condemnation has been commenced or, to
Borrower’s Knowledge, is contemplated with respect to all or any material
portion of the Mortgaged Property.  No
portion of the Mortgaged Property has been materially damaged as a result of
any Casualty.

 

(2)           Assessments.  To Borrower’s Knowledge, except as disclosed
in the Title Policies, on the real estate tax bills (copies of which tax bills
have been provided to Administrative Agent), there are no pending or proposed
special or other assessments for public improvements or otherwise affecting the
Mortgaged Property, nor are there any contemplated improvements to the
Mortgaged Property that may result in such special or other assessments.

 

(3)           Flood Plain.  The Mortgaged Property is not located in an
area identified by the Federal Emergency Management Agency as an area having
special flood hazards, except as disclosed on the Survey or flood
certifications or if located in such area, that status has been disclosed to
Administrative Agent via delivery of a flood plain map or flood certifications
and does not unreasonably impair the value of the subject Mortgaged Property.

 

(4)           No Prior Assignment.  There are no prior sales, transfers or assignments
of any portion of the Rents due and payable or to become due and payable which
are presently outstanding following the funding of the Loans, other than those
being assigned to the Administrative Agent concurrently herewith.

 

57

 

(5)           Leases.  The Mortgaged Property is not subject to any
Leases demising any portion of the Mortgaged Property other than the Approved
Leases.  No Person has any possessory
interest in the Mortgaged Property or right to occupy the same except under and
pursuant to the provisions of the Approved Leases or other Permitted
Encumbrances.  The Borrower is in
compliance in all material respects with its obligations under each of the
Approved Leases.  There are no material
defaults under the Permitted Encumbrances by Borrower or to the Borrower’s
Knowledge any other Person, and to the Borrower’s Knowledge there are no
conditions that, with the passage of time or the giving of notice, or both,
would constitute material defaults thereunder. 
All construction and other obligations of a material nature to be
performed by the Borrower under the Permitted Encumbrances either have been
satisfied or are reasonably capable of being satisfied without undue expense in
accordance with the provisions of the subject Permitted Encumbrance. Any
payments by the Borrower due to the other parties to the Permitted Encumbrances
for tenant improvements, infrastructure or land development have been made to
the extent then required.  No Person
party to any Approved Lease or any Permitted Encumbrance is entitled to any
material offsets, abatements or deductions against the Rent payable thereunder
from and after the date hereof.

 

(6)           Options
to Acquire.  None of the Mortgaged
Property is subject to any right of first refusal, right of first offer or
other options to purchase.

 

4.24         Use
of Proceeds.  The proceeds of the
Initial Funding shall be used to (a) fund the Closing Date Distribution, (b) fund
the Interest Reserve Account, and (c) pay Facility-related transactional
fees and expenses approved by Administrative Agent.  The proceeds of any subsequent Advance shall
be used solely to finance the purchase of Adjacent Parcels, subject to the
terms and conditions of this Agreement.

 

4.25         Single
Purpose Entity.  Each of Borrower and
Pledgor is a Single Purpose Entity.

 

4.26         Labor.  There are no strikes, work stoppages,
slowdowns or lockouts pending or to Borrower’s Knowledge, threatened against or
involving the Borrower, other than those that in the aggregate would not have a
Material Adverse Effect.  There are no
unfair labor practices, grievances or complaints pending, or, to the Borrower’s
Knowledge, threatened, against or involving the Borrower, nor are there any
pending or, to the Borrower’s Knowledge, threatened arbitrations or grievances
involving the Borrower, other than those that, in the aggregate, if resolved
adversely to the Borrower, would not have a Material Adverse Effect.

 

4.27         Taxpayer
Identification Number.  The federal
taxpayer identification number of Borrower is as set forth in Schedule 4.27.

 

4.28         Anti-Terrorism
Laws.

 

(1)           Neither
Borrower nor, to the Knowledge of any of the Borrower Parties, any of its
Affiliates is in violation of any laws relating to terrorism or money
laundering (“Anti-Terrorism Laws”), including Executive Order No. 13224
on Terrorist Financing, effective September 23, 2001 (the “Executive
Order”), and the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law
107-56 (signed into law on October 26, 2001) (the “USA Patriot Act”).

 

58

 

(2)           Neither
Borrower nor, to the Knowledge of any of the Borrower Parties, any of its
Affiliates acting or benefiting in any capacity in connection with the Loans is
any of the following:

 

(i)            a Person or entity that is listed in
the annex to, or is otherwise subject to the provisions of, the Executive
Order;

 

(ii)           a Person or entity owned or
controlled by, or acting for or on behalf of, any Person or entity that is
listed in the annex to, or is otherwise subject to the provisions of, the
Executive Order;

 

(iii)          a Person or entity with which any
Lender is prohibited from dealing or otherwise engaging in any transaction by
any Anti-Terrorism Law;

 

(iv)          a Person or entity that commits,
threatens or conspires to commit or supports “terrorism” as defined in the
Executive Order; or

 

(v)           a Person or entity that is named as a
“specially designated national and blocked Person” on the most current list
published by the U.S. Treasury Department Office of Foreign Assets Control at
its official website or any replacement website or other replacement official
publication of such list.

 

(3)           Neither
Borrower nor, to the Knowledge of any Borrower Party, any of its Affiliates
acting in any capacity in connection with the Loans (i) conducts any
business or engages in making or receiving any contribution of funds, goods or
services to or for the benefit of any Person described in Section 4.28(2) above,
(ii) deals in, or otherwise engages in any transaction relating to, any
property or interests in property blocked pursuant to the Executive Order, or (iii) engages
in or conspires to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or 
attempts to violate, any of the prohibitions set forth in any
Anti-Terrorism Law.

 

4.29         Property
Accounts.  Schedule 4.29
hereof contains as of the Closing Date a complete and accurate list of all
Property Accounts maintained with any bank or other financial institution by
the Borrower, each of which financial institutions shall be an Approved Bank
and shall have executed a Deposit Account Control Agreement.

 

4.30         Required
Interest Rate Contracts.  Each of the
Required Interest Rate Contracts is in full force and effect and enforceable
against the Borrower in accordance with its terms, subject to applicable
bankruptcy, insolvency or similar laws generally affecting the enforcement of
creditors’ rights and subject as to enforceability to general principles of
equity (regardless of whether enforcement is sought in a proceeding in equity
or at law).

 

ARTICLE V

AFFIRMATIVE COVENANTS.

 

The Borrower
hereby covenants and agrees with the Administrative Agent and each Lender that,
as long as any Loans remain unpaid or the Commitments remain outstanding, it
will do, and cause any Borrower Party to do directly or indirectly, the
following:

 

59

 

5.1           Reporting
Requirements

 

The Borrower shall furnish
to the Administrative Agent each of the following:

 

(1)           Quarterly
Reports.  Not later than sixty (60)
days following the end of each fiscal quarter, Borrower shall deliver to
Administrative Agent unaudited financial statements for each of Borrower and
Station Casinos, Inc., in each case internally prepared in accordance with
GAAP including a balance sheet and profit and loss statement as of the end of
such quarter and for the corresponding quarter of the previous year (to the
extent available), and a comparison of the year to date results with the
results for the same period of the previous year (to the extent
available).  Such statements for each
quarter shall be accompanied by an Officer’s Certificate of the Person to which
such statements pertain certifying to the best of the signer’s knowledge, that
such statements fairly represent the financial condition and results of
operations of such Person.  Such
financial statements shall contain such other information as shall be
reasonably requested by Administrative Agent for purposes of calculations to be
made by Administrative Agent pursuant to the terms hereof.

 

(2)           Annual
Reports.  Not later than one hundred
twenty (120) days after the end of each Fiscal Year, Borrower shall deliver to
Administrative Agent consolidating audited financial statements certified by an
Independent Accountant in accordance with GAAP for Station Casinos, Inc.,
including a balance sheet as of the end of such year, a statement of net
operating income for the year and stating in comparative form the figures for
the previous fiscal year (to the extent available).  Such annual financial statements shall also
be accompanied by the Officer’s Certificates in the form required pursuant to Section 5.1(1).

 

(3)           Compliance Certificate.  Together with each delivery of any report
pursuant to clauses (1) and (2) of this Section 5.1, a certificate of a
Responsible Officer of the Borrower (each, a “Compliance
Certificate”) (A) showing in reasonable detail the
calculations used in demonstrating compliance with each of the financial
covenants contained in Section 6.9 as of the
end of such quarter, including, without limitation, a statement of the most
current appraised value for each Real Property and (B) stating that no
Potential Default or Event of Default has occurred and is continuing or, if a
Potential Default or an Event of Default has occurred and is continuing,
stating the nature thereof and the action that the Borrower propose to take
with respect thereto.

 

(4)           Default
Notices.  As soon as practicable, and
in any event within five Business Days after a Responsible Officer of any
Borrower Party has Knowledge of the existence of any Potential Default, Event
of Default or other event having had a Material Adverse Effect or a Property
Material Adverse Effect, the Borrower shall give the Administrative Agent
notice specifying the nature of such Potential Default or Event of Default or
other event, including the anticipated effect thereof, which notice, if given
by telephone, shall be promptly confirmed in writing on the next Business Day.

 

(5)           Notice
of Litigation.  Promptly after the
commencement thereof, the Borrower shall give the Administrative Agent written
notice of the commencement of all actions, suits and proceedings before any
domestic or foreign Governmental Authority or arbitrator, affecting the
Borrower, that, in the reasonable judgment of the Borrower, expose the Borrower
to 

 

60

 

liability which, if adversely determined could reasonably be expected
to have a Material Adverse Effect or a Property Material Adverse Effect.

 

(6)           ERISA
Matters.  The Borrower shall furnish
the Administrative Agent the following:

 

(i)            promptly and in any event within ten
(10) days after the Borrower or any ERISA Affiliate knows or has reason to
know that any ERISA Event reasonably likely to result in a liability of the
Borrower in
excess of $1,000,000 has occurred, a written statement of a Responsible Officer
of the Borrower describing such ERISA Event and the action, if any, that the
Borrower, and its ERISA Affiliates propose to take with respect thereto and a
copy of any notice filed by the Borrower or any ERISA Affiliate with the PBGC
or the IRS pertaining thereto; and

 

(ii)           promptly following any request
therefor, copies of (A) each Schedule B (Actuarial
Information) to the annual report (Form 5500 Series) filed by the Borrower
or any ERISA Affiliate with the Internal Revenue Service with respect to each
Title IV Plan, or, in lieu thereof, a certificate of a Responsible Officer
of the Borrower stating that Borrower had no employees for the year in
question; (B) the most recent actuarial valuation report for each
Title IV Plan; (C) all notices received by the Borrower or any ERISA
Affiliate from a Multiemployer Plan sponsor or any governmental agency
concerning an ERISA Event; and (D) such other documents or governmental
reports or filings relating to any Title IV Plan (or employee benefit plan
sponsored or contributed to by the Borrower or any ERISA Affiliate) as the Administrative
Agent shall reasonably request.

 

(7)           Environmental
Matters.  The Borrower shall provide
to the Administrative Agent promptly (and in any event within 10 Business
Days): (i) any Hazardous Material Claims Known to the Borrower (not listed
on Schedule 4.15 hereto) which would be reasonably expected to have a
Property Material Adverse Effect; (ii) the receipt of any credible written
notice of any alleged violation of Hazardous Materials Laws with respect to the
Mortgaged Property provided that such alleged violation, if true (and if any
release of the Hazardous Materials alleged therein were not promptly
remediated), would reasonably be expected to result in a breach of Sections
5.10(1) or (2); and (iii) the discovery of any occurrence
or condition on the Mortgaged Property that would reasonably be expected to
cause the Borrower to be in breach of Section 5.10(1) or, if
not promptly remediated, of Section 5.10(2).

 

(8)           Appraisals.

 

(i)            If, in their sole and absolute
discretion, Agents shall determine that there has been a deterioration in the
market value of a Real Property, Agents may update any Appraisal, or obtain a
new Appraisal, from time to time; provided, however, that unless an
Event of Default shall have occurred and be continuing at the time such
Appraisals are undertaken, Borrower shall not be liable for the expense of more
than one Appraisal for each Real Property in any twelve (12) month period.

 

(ii)           The Administrative Agent may, with
reasonable prior written notice (not to exceed three (3) Business Days) to
the Borrower, and, after and during the 

 

61

 

continuance of
an Event of Default, make physical verifications of the Mortgaged Property in
any manner and through any medium that the Administrative Agent considers
advisable, and the Borrower shall furnish all such assistance and information
as the Administrative Agent may require in connection therewith.

 

(9)           Other
Information.  The Borrower will
provide the Administrative Agent or any Lender with such other information
respecting the business, properties, condition, financial or otherwise, or
operations of the Borrower as the Administrative Agent or any Lender through
the Administrative Agent may from time to time reasonably request, including,
without limitation, a schedule of the leasing activity at the Wild Wild West
Assemblage during such period as such Lender or Administrative Agent shall
specify.

 

5.2           Maintenance of Existence and
Rights.  The Borrower Parties shall
do or cause to be done all things necessary to (1) preserve, renew and
keep in full force and effect such Person’s existence, rights, licenses,
permits and franchises necessary to comply with all Requirements of Law
applicable to them and the Mortgaged Property, except to the extent permitted
in Section 6.3; and (2) remain qualified to do business and
maintain its good standing in each jurisdiction in which failure to be so
qualified and in good standing would reasonably be expected to have a Material
Adverse Effect.

 

5.3           Compliance
with Laws; Forfeiture.  Subject to
any Good Faith Contest, each of the Borrower Parties shall comply and cause the
Mortgaged Property to be in material compliance with all material Requirements
of Law applicable to the Borrower Parties and the Mortgaged Property and the
uses permitted upon the Mortgaged Property. 
There shall never be committed by the Borrower Parties, and the Borrower
Parties shall not knowingly permit, any other Person in occupancy of or involved
with the operation or use of the Mortgaged Property to commit, any act or
omission affording the federal government or any state or local government the
right of forfeiture as against the Mortgaged Property or any part thereof or
any monies paid in performance of the Borrower’s obligations under any of the
Loan Documents.  Borrower hereby
covenants and agrees not to commit, knowingly permit or suffer to exist any act
or omission affording such right of forfeiture.

 

5.4           Access.  The Borrower shall from time to time permit
the Administrative Agent and the Lenders, or any agents or representatives
thereof, promptly after written notification of the same (except that during
the continuance of an Event of Default, no such notice shall be required) to (1) examine
and make copies of and abstracts from the records and books of account of the
Borrower, (2) visit the properties of the Borrower, (3) discuss the
affairs, finances and accounts of the Borrower with its officers, directors, managers, managing
members and/or the officers and directors thereof, and (4) communicate
directly with any of the Borrower’s certified public accountants.  The Borrower shall authorize its independent
certified public accountants to disclose to the Administrative Agent or any
Lender during the continuance of an Event of Default any and all financial
statements and other information of any kind, as the Administrative Agent or
any Lender reasonably requests from the Borrower and that such accountants may
have with respect to the business, financial condition, results of operations
or other affairs of the Borrower.

 

62

 

5.5           Insurance;
Casualty; Condemnation; Restoration.

 

(1)           Insurance.  Borrower shall, at its sole
cost and expense, keep in full force and effect insurance coverage of the types
and minimum limits as set forth in Schedule 5.5.

 

(2)           Insurance Proceeds.

 

(i)            If any portion of the Mortgaged
Property is damaged or destroyed, in whole or in part, by a Material Casualty
(as defined below), the Borrower shall give prompt written notice thereof to
the Administrative Agent, generally describing the nature and extent of such
Casualty.  Following the occurrence of a
Casualty, unless the Administrative Agent has made an election under Section 5.5(4) and
pursuant thereto applied the Proceeds to pay the Obligations, the Borrower
shall in a reasonably prompt manner either (x) use the Proceeds to pay the
Obligations or (y) apply the Proceeds in accordance with Section 5.5(3).

 

(ii)           Subject to clause (v) below, in
the event of a Casualty where the loss does not exceed $2,500,000, the Borrower
may settle and adjust such claim without the consent of the Administrative
Agent; provided that such adjustment is carried out in a competent and
timely manner. In such case, the Borrower is hereby authorized to collect and
receive any Proceeds.

 

(iii)          Subject to clause (v) below, in
the event of a Casualty where the loss exceeds $2,500,000 (a “Material
Casualty”), the Borrower may settle and adjust such claim
only with the consent of the Administrative Agent (which consent shall not be
unreasonably withheld or delayed) and the Administrative Agent shall have the
opportunity to participate in any such adjustments.

 

(iv)          The proceeds of any Policy in excess
of $2,500,000 shall be due and
payable jointly to the Administrative Agent and the Borrower as their interests
may appear and held and applied in accordance with the terms hereof, with
Administrative Agent to be shown as Mortgagee and Loss Payee on all Property
Insurance.

 

(v)           Notwithstanding the terms of clauses (i) and
(ii) above, the Administrative Agent shall have the sole authority to
collect all Proceeds if an Event of Default shall have occurred and is
continuing.

 

(3)           Right of the Borrower to Apply to
Restoration. In the event of (1) a Casualty that does not constitute a
Material Casualty, or (2) a Condemnation that does not constitute a
Material Condemnation, the Administrative Agent shall permit the application of
the Proceeds (after reimbursement of any reasonable out-of-pocket expenses actually
incurred by the Administrative Agent) to reimburse the Borrower for the cost of
restoring, repairing, replacing or rebuilding or otherwise curing title defects
at the Mortgaged Property (the “Restoration”), in the manner required hereby, provided and on the
condition that (y) no Event of Default shall have occurred and be then
continuing and (z) in the reasonable judgment of the Administrative Agent:

 

(i)            the Mortgaged Property, after such
Restoration, will adequately secure the outstanding balance of the Loans, and

 

63

 

(ii)           the Restoration can be completed by
the 90th day prior to the Maturity Date.

 

(4)           Material
Casualty or Condemnation. In the event of a Material Casualty or a Material
Condemnation, then the Administrative Agent shall apply the Proceeds therefrom
in respect of the Obligations.

 

(5)           Manner of Restoration and
Reimbursement. If the Borrower is entitled pursuant to Section 5.5(3) above
to reimbursement out of Proceeds (and the conditions specified therein shall
have been satisfied), such Proceeds shall be promptly disbursed by
Administrative Agent.

 

(6)           Condemnation.  Borrower shall promptly notify, or cause to
be notified, Administrative Agent of the actual or threatened commencement of any
proceeding for the Condemnation of any Mortgaged Property of which Borrower has
Knowledge and deliver or cause to be diligently delivered to Administrative
Agent copies of any and all material papers served in connection with such
proceedings.  Administrative Agent may
participate in any such proceedings, and the Borrower shall from time to time
deliver to Administrative Agent all instruments requested by them to permit
such participation.  Borrower shall, at
its expense, diligently prosecute or cause to be diligently prosecuted any such
proceedings.  Borrower may settle and
compromise the Proceeds of any Condemnation where the loss exceeds $2,500,000
(a “Material Condemnation”) only with the consent of the Administrative
Agent (which consent shall not be unreasonably withheld or delayed).  Borrower may settle and compromise the
Proceeds of any Condemnation that is not a Material Condemnation without the
consent of the Administrative Agent. 
Notwithstanding any taking by any public or quasi-public authority
through Condemnation or otherwise (including but not limited to any transfer
made in lieu of or in anticipation of the exercise of such taking), the
Borrower shall continue to pay the Obligations at the time and in the manner
provided for herein and the other Loan Documents, and the Obligations shall not
be reduced unless and until any Proceeds shall have been actually received and
applied by Administrative Agent, after the deduction of expenses of collection,
to the reduction or discharge of the Obligations pursuant to the terms of Section 5.5(3) or
5.5(4) above. Administrative Agent shall not be limited to the
interest paid on such Proceeds by the condemning authority but shall be
entitled to receive out of such Proceeds interest at the rate or rates provided
herein applicable to the Loans.  To the
extent the Proceeds of any Condemnation are to be applied by Administrative
Agent pursuant to Section 5.5(3) or 5.5(4) above,
the Borrower shall cause such Proceeds to be paid directly to the
Administrative Agent to be held and applied pursuant to such provisions.

 

5.6           Books
and Records.

 

The Borrower
shall keep and maintain on a Fiscal Year basis proper books and records in
which accurate and complete entries shall be made of all dealings or
transactions of or in relation to the Loans, the Mortgaged Property and the
business and affairs of the Borrower relating to the Mortgaged Property which
shall reflect all items of income and expense in connection with the operation
of the Mortgaged Property and in connection with any services, equipment or
furnishings provided in connection with the operation of the Mortgaged
Property, in accordance with GAAP.

 

64

 

5.7           Maintenance
of Property.  The Borrower shall keep
and maintain, or cause to be kept and maintained, the Mortgaged Property and
every part thereof in good condition and repair, subject to ordinary wear and
tear, and, subject to the provisions of this Agreement with respect to damage
or destruction caused by a Casualty or Condemnation, shall not permit or commit
any waste, impairment, or deterioration of any portion of the Mortgaged
Property in any material respect. The Borrower further covenants to do all
other acts which from the character or use of the Mortgaged Property may be
reasonably necessary to protect the security hereof, the specific enumerations
herein not excluding the general.

 

5.8           Approved
Leases.  Borrower agrees that,
without the prior written consent of Administrative Agent, it shall not (a) renew
(other than pursuant to renewal rights expressly set forth in such Approved
Lease) or extend any Approved Lease, (b) waive any provisions of any
Approved Lease, provided that subject to clause (a), Borrower shall have the
right to waive provisions of such Approved Lease so long as the same would not
have the effect of either permitting Borrower to take an action that it is
prohibited from taking under any of the Loan Documents, or preventing Borrower
from complying with its obligations under any of the Loan Documents, or (c) amend
or modify in any respect in a manner adverse to Administrative Agent, or that
would increase Borrower’s obligations thereunder, any provision of any Approved
Lease.

 

5.9           Taxes.

 

(1)           The
Borrower Parties shall file all Tax Returns required to be filed in any
jurisdiction and, if applicable, and except with respect to Taxes subject to
any Good Faith Contest, pay and discharge all Taxes imposed upon it or its
Property or in respect of any of its franchises, business, income or property
before any material penalty shall be incurred with respect to such Taxes.

 

(2)           The
Borrower shall pay, subject to the right to pursue a Good Faith Contest, all
Impositions now or hereafter levied or assessed or imposed against the
Mortgaged Property or any part thereof prior to the imposition of any interest,
charges or expenses for the non-payment thereof and shall pay all Other Charges
on or before the date they are due. 
Subject to the Borrower’s right to pursue a Good Faith Contest, the
Administrative Agent, on behalf of the Borrower, may pay, but shall not be
obligated to pay, any delinquent Impositions and Other Charges which are
attributable to or affect the Mortgaged Property or the Borrower directly to
the applicable taxing authority with respect thereto, and the Borrower agrees
to reimburse the Administrative Agent for such payments promptly on demand.

 

5.10         Environmental.

 

The Borrower
shall:

 

(1)           And
shall cause the Mortgaged Property to, comply with all Hazardous Materials
Laws, except for any such non-compliance that would not reasonably be expected
to have a Property Material Adverse Effect.  If the Security Instruments are
foreclosed, Borrower shall deliver the Mortgaged Property in material
compliance with all applicable Hazardous Materials Laws.

 

65

 

(2)           If
at any time during the continuance of the Lien of the Security Instruments, a
Governmental Authority having jurisdiction over the Property requires, in
writing, remedial action to correct the presence of Hazardous Materials in,
around, or under the Mortgaged Property (an “Environmental Event”),
deliver prompt notice of the occurrence of such Environmental Event to
Administrative Agent.  Within thirty (30)
days after Borrower has knowledge of the occurrence of an Environmental Event,
Borrower shall deliver to Administrative Agent an Officer’s Certificate (an “Environmental
Certificate”) explaining the Environmental Event in reasonable detail and
setting forth the proposed remedial action, if any.

 

(3)           Promptly
cause the removal of any Hazardous Materials discharged, disposed of, or
otherwise released in, on or under the Mortgaged Property that are in material
violation of any Hazardous Materials Laws, and cause any remediation required
by any Hazardous Material Laws or Governmental Authority to be performed,
though no such action shall be required if any action is subject to a Good
Faith Contest.  In the course of carrying
out such actions, the Borrower shall provide the Administrative Agent with such
periodic information and notices regarding the status of investigation,
removal, and remediation, as the Administrative Agent may reasonably require.

 

5.11         Title to the Mortgaged Property.  Borrower shall warrant and defend (1) its
title to the Mortgaged Property and every part thereof, subject only to Liens
permitted hereunder (including Permitted Encumbrances) and (2) the
validity and priority of the Liens of the Security Instruments and this
Agreement on the Mortgaged Property, subject only to Liens permitted hereunder
(including applicable Permitted Encumbrances), in each case against the claims
of all Persons whomsoever.

 

5.12         Loan Proceeds.  The Borrower shall use the entire amount of
the proceeds of the Loans as provided in Section 4.24.

 

5.13         Interest Rate Contracts.

 

(1)           Required
Interest Rate Contracts.  The Borrower
enter into no later than the Closing Date and thereafter maintain in effect the
Required Interest Rate Contracts, with reduction to reflect
prepayments of principal amounts of the Loans, through and including the
Maturity Date.

 

(2)           Pledge and Collateral Assignment.  Borrower shall enter into an Assignment of
Interest Rate Contract with respect to each Required Interest Rate Contract
which assignment pledges, assigns, transfers, delivers and grants a continuing
first priority lien to the Administrative Agent, as security for payment of all
sums due in respect of the Loans and the performance of all other terms,
conditions and covenants of this Agreement and any other Loan Document on the
Borrower’s part to be paid and performed, in, to and under all of such Borrower’s
right, title and interest whether now owned or hereafter acquired and whether
now existing or hereafter arising: (i) in the Required Interest Rate
Contract; (ii) to receive any and all payments under the Required Interest
Rate Contract, whether as contractual obligations, damages or otherwise; and (iii) to
all claims, rights, powers, privileges, authority, options, security interests,
liens and remedies, if any, under or arising out of the Required Interest Rate
Contract, in each case including all accessions and additions to, substitutions
for and replacements, 

 

66

 

products and
proceeds of any of the foregoing (collectively, the “Rate Contract
Collateral”).  The Borrower shall notify the counterparty
under the Required Interest Rate Contract of such assignment. The Borrower
shall not, without obtaining the prior written consent of the Administrative
Agent, further pledge, transfer, deliver, assign or grant any security interest
in any Required Interest Rate Contract or any of the other Rate Contract
Collateral or permit any Lien or encumbrance to attach thereto, or any levy to
be made thereon, or any UCC-1 Financing Statements or any other notice or
instrument as may be required under the UCC, as appropriate, except those
naming the Administrative Agent as the secured party, to be filed with respect
thereto.

 

(3)           Covenants.

 

(i)            The Borrower shall comply with all
of its obligations under the terms and provisions of the Required Interest Rate
Contracts.  All amounts paid by the
counterparty under the Required Interest Rate Contracts to the Borrower or the
Administrative Agent shall be deposited immediately into the Interest Reserve
Account.  The Borrower shall take all
actions reasonably requested by the Administrative Agent to enforce the
Borrower’s rights under the Required Interest Rate Contracts in the event of a
default by the counterparty thereunder and shall not waive or otherwise Modify
any of its rights thereunder.

 

(ii)           If DBTCA, JPM or an Affiliate thereof
is not the Counterparty, in the event of (A) any downgrade, withdrawal or
qualification (each, a “Downgrade”)
of the rating of any Counterparty to a Required Interest Rate Contract such
that, thereafter, such Counterparty shall cease to be an Acceptable
Counterparty or (B) any Counterparty shall fail to comply with the
requirements contained in the Required Interest Rate Contract,  upon such occurrence, the Borrower shall
replace such Required Interest Rate Contract with a replacement Interest Rate
Contract satisfying all the requirements of the replaced Required Interest Rate
Contract hereunder and otherwise acceptable to the Administrative Agent (and
such replacement Interest Rate Contract shall be a Required Interest Rate
Contract).

 

(iii)          Except as permitted by Section 5.13(2),
the Borrower shall not (A) without the prior written consent of the
Administrative Agent, Modify the terms of any Required Interest Rate Contract, (B) without
the prior written consent of the Administrative Agent, cause the termination of
any Required Interest Rate Contract prior to its stated maturity date, (C) without
the prior written consent of the Administrative Agent, except as aforesaid,
waive or release any obligation of any Counterparty (or any successor or
substitute party to a Required Interest Rate Contract) under a Required
Interest Rate Contract, (D) without the prior written consent of the
Administrative Agent, consent or agree to any act or omission to act on the
part of any Counterparty (or any successor or substitute party to a Required
Interest Rate Contract) which, without such consent or agreement, would
constitute a default under such Required Interest Rate Contract, (E) fail
to exercise promptly and diligently each and every material right which it may
have under any Required Interest Rate Contract, (F) take or intentionally
omit to take any action or intentionally suffer or permit any action to be
omitted or taken, the taking or omission of which would result in any right of
offset against sums payable under any Required Interest Rate Contract or any
defense by any Counterparty (or any successor or substitute party to a Required
Interest Rate Conrtract) to payment or (G) fail to give prompt notice to
the Administrative Agent of any notice of default given by or to the 

 

67

 

Borrower under
or with respect to any Required Interest Rate Contract, together with a
complete copy of such notice.

 

5.14         Single
Purpose Entities. Borrower shall cause each of Borrower and Pledgor to
maintain itself as a Single Purpose Entity.

 

5.15         Interest
Reserve Account.

 

(1)           Establishment of Interest Reserve
Account.  Borrower hereby
acknowledges that, simultaneously with the execution of this Agreement,
pursuant to the Account Agreement, Borrower has established with the Securities
Intermediary an interest reserve account (the “Interest Reserve Account”),
which has been established as an interest bearing Securities Account.  Pursuant to the Account Agreement, Borrower
shall irrevocably instruct and authorize the Securities Intermediary to
disregard any and all orders for withdrawal from the Interest Reserve Account made
by, or at the direction of, Borrower.  So
long as no Event of Default shall have occurred and be continuing, Borrower
shall have the right to give instructions to the Securities Intermediary
regarding the investment of the property in the Interest Reserve Account,
provided that Borrower shall only direct the investment of the property in the
Interest Reserve Account in one or more Permitted Investments, and any
direction from Borrower instructing the Securities Intermediary to invest any
or all of the property in the Interest Reserve Account in any investment other
than a Permitted Investment shall constitute an Event of Default
hereunder.  Borrower agrees that, prior
to the payment in full of the Obligations, the terms and conditions of the
Account Agreement shall not be amended or modified in any material respect
without the prior written consent of Administrative Agent (which consent
Administrative Agent may grant or withhold in its sole discretion).  In recognition of Administrative Agent’s
security interest in the funds deposited into the Interest Reserve Account, the
Interest Reserve Account shall be named as follows: “CV PropCo, LLC Interest
Reserve Account ifo DBTCA, as Admin. Agent” (Account Number 24900965).

 

(2)           Funding and Maintenance of Minimum
Balance.  On the Closing Date, Borrower
will have deposited $13,111,611.11 into the Interest Reserve Account.  Subject to the terms hereof, so long as no
Event of Default shall have occurred and be continuing, Administrative Agent
will apply the funds on deposit in the Interest Reserve Account to pay (i) the
interest due on the Loans as and when due pursuant to Section 2.6
of this Agreement, (ii) to the providers of the Required Interest Rate
Contracts any amounts due thereunder (other than  any termination payments) as specified to
Administrative Agent by the Counterparty under each such Required Interest Rate
Contract, and (iii) solely with respect to the first six (6) months
after the Closing Date, to Borrower on a monthly basis the amount of interest
and/or cash dividends earned during the preceding month on financial assets
maintained in the Interest Reserve Account. 
Borrower shall make additional deposits into the Interest Reserve
Account as necessary to cause the aggregate amount on deposit therein to equal
or exceed the Minimum Balance at all times during the term of the Loans.  If the aggregate amount on deposit in the
Interest Reserve Account is less than the Minimum Balance at any time, such
shall constitute a Potential Default hereunder.

 

(3)           Maintenance of Account.  Borrower agrees that the Interest Reserve
Account is and shall be maintained (i) as a “securities account” (as such
term is defined in

 

68

 

Section 8-501(a) of the UCC), (ii) in such a manner that
Administrative Agent shall have control (within the meaning of Section 8-106(d) of
the UCC) over the Interest Reserve Account and (iii) such that no Person
other than Administrative Agent shall have any right of withdrawal from the
Interest Reserve Account and, except as provided herein, no Account Collateral
shall be released to the Borrower or any Affiliate of Borrower from the
Interest Reserve Account.  Without
limiting the Borrower’s obligations under the immediately preceding sentence,
Borrower shall only establish and maintain the Interest Reserve Account with a
financial institution that has executed an agreement substantially in the form
of the Account Agreement or in such other form acceptable to Administrative
Agent in its sole discretion. 
Administrative Agent shall have the right at Borrower’s sole cost and
expense to replace the Securities Intermediary 
with a financial institution reasonably satisfactory to Borrower in the
event that (i) the Securities Intermediary fails, in any material respect,
to comply with the Account Agreement  or (ii) the
Securities Intermediary is no longer an Approved Bank.  Upon the occurrence and during the
continuance of an Event of Default, Administrative Agent shall have the right
at Borrower’s sole cost and expense to replace the Securities Intermediary at
any time, without notice to Borrower. 
Borrower shall cooperate with Administrative Agent in connection with
the appointment of any replacement Securities Intermediary and the execution by
the replacement Securities Intermediary and the Borrower of an Account
Agreement and delivery of same to Administrative Agent.

 

5.16        Security Interest
in Accounts.

 

(1)           To secure the full and punctual
payment and performance of the Obligations, Borrower hereby collaterally
assigns, grants a security interest in and pledges to Administrative Agent, to
the extent not prohibited by applicable law, a first priority continuing
security interest in and to the following property of Borrower, whether now
owned or existing or hereafter acquired or arising and regardless of where
located (all of the same, collectively, the “Account Collateral”):

 

(a)               the Interest Reserve Account and all financial assets, investment property,
securities, cash, deposits
and/or wire transfers and other property from time to time deposited or held
in, credited to or made to the Interest Reserve Account;

 

(b)               the Property Accounts and all cash, deposits and/or
wire transfers from time to time deposited or held in, credited to or made to
any of the Property Accounts;

 

(c)               all interest, financial assets, investment property,
securities, cash and other
property from time to time received, receivable or otherwise payable in respect
of, or in exchange for, any or all of the foregoing or purchased with funds
from the Interest Reserve Account or any of the Property Accounts;

 

(d)               to the extent not covered by clauses (a), (b) or (c) above,
all proceeds (as defined under the UCC) of any or all of the foregoing.

 

(2)           In addition to the rights and
remedies herein set forth, Administrative Agent shall have all of the rights
and remedies with respect to the Account Collateral available to

 

69

 

a secured party at law or in equity, including, without limitation, the
rights of a secured party under the UCC, as if such rights and remedies were
fully set forth herein.

 

(3)           This Agreement shall constitute a
security agreement for purposes of the Uniform Commercial Code and other
applicable law.

 

(4)           Notwithstanding anything to the
contrary contained in this Agreement, upon the occurrence and during the
continuance of an Event of Default, without additional notice from
Administrative Agent to Borrower, Administrative Agent may, in addition to and
not in limitation of its other rights, make any and all withdrawals from the
Interest Reserve Account and the Property Accounts as Administrative Agent
shall determine in its sole and absolute discretion to pay any Indebtedness,
Obligations, operating expenses and/or capital expenditures for the Mortgaged
Property in such order and priority as Administrative Agent shall
determine in its sole and absolute discretion.

 

5.17        Entitlements. Borrower shall
diligently pursue securing all of the entitlements necessary to develop each
Real Property as a
hotel-casino and shall promptly notify the Administrative Agent upon achieving
the full entitlement of a Real Property for development as a hotel-casino.

 

5.18        Further Assurances.

 

(1)           The Borrower Parties shall promptly
upon request by the Administrative Agent or any Lender, do any acts or,
execute, acknowledge, deliver, record, re-record, file, re-file, register and
re-register, any and all such further deeds, conveyances, security agreements,
mortgages, assignments, estoppel certificates, financing statements and
continuations thereof, termination statements, notices of assignment,
transfers, certificates, assurances and other instruments the Administrative
Agent or such Lender, as the case may be, may reasonably require from time to
time in order (i) to carry out more effectively the purposes of this
Agreement or any other Loan Document, and (ii) to assure, convey, grant,
assign, transfer, preserve, protect and confirm to the Administrative Agent and
Lenders the rights granted or now or hereafter intended to be granted to the
Lenders under any Loan Document or under any other document executed in
connection therewith.

 

(2)           Borrower agrees that it shall, upon
request and at no cost to Borrower,  reasonably
cooperate with Administrative Agent or any Lender in connection with any
request by Administrative Agent or Lender to sever one or more of the Notes
into two (2) or more separate substitute notes in an aggregate principal
amount equal to the principal amount of the original Note and to reapportion
the Loans among such separate substitute notes, including, without limitation,
by executing and delivering to Administrative Agent or such Lender new
substitute notes to replace the applicable Note or Notes, amendments to or
replacements of existing Loan Documents to reflect such severance and/or
opinions of counsel with respect to such substitute notes, amendments and/or
replacements, provided that Borrower shall bear no costs or expenses in
connection therewith (other than internal administrative costs and expenses of
Borrower).  Any such substitute notes may
have varying principal amounts and economic terms, provided, however, that (i) the
maturity date of any such substitute note shall be the same as the Maturity
Date, (ii) the initial weighted average interest rate for the term of the
substitute

 

70

 

notes shall not exceed the
interest rate under the Note being substituted immediately prior to the
issuance of such substitute notes; and (iii) the economics of the Loans
shall not change in a manner which is adverse to Borrower.  Upon the occurrence and during the
continuance of an Event of Default, Administrative Agent may apply payment of
all sums due under such substitute notes (and in respect of any other
Obligations) in such order and priority as Administrative Agent shall elect in
its sole and absolute discretion.

 

(3)           Administrative Agent will take such
action as may be reasonably required in order to permit the filing of plats,
maps, records of survey or other documents necessary for the development of
improvements on the Mortgaged Property to the extent required by any applicable
Governmental Authority and otherwise permitted under the terms of this Agreement.

 

 

5.19        Escrow Deposits.
At Administrative Agent’s request at any time after an Event of Default has
occurred, Borrower shall deposit with Administrative Agent, monthly, one
twelfth (1/12th) of the insurance premiums and Impositions upon the Mortgaged
Property.  In addition, if required by
Administrative Agent at any time after an Event of Default has occurred,
Borrower shall simultaneously therewith deposit with Administrative Agent a sum
of money which together with the monthly installments aforementioned will be
sufficient to make each of the payments aforementioned at least thirty (30)
days prior to the date such payments are deemed delinquent.  Should said charges not be ascertainable at
the time any deposit is required to be made with Administrative Agent, the
deposit shall be made on the basis of the charges for the prior year, and when
the charges are fixed for the then current year, Borrower shall deposit any
deficiency with Administrative Agent. 
All funds so deposited with Administrative Agent shall be held by it
without interest, may be commingled by Administrative Agent with its general
funds and shall be applied in payment of the charges aforementioned when and as
payable, to the extent Administrative Agent shall have such funds on hand.  If deposits are being made with
Administrative Agent, Borrower shall furnish Administrative Agent with bills
for the charges for which such deposits are required to be made hereunder
and/or such other documents necessary for the payment of same, at least fifteen
(15) days prior to the date on which the charges first become payable.  In the event Borrower fails to pay any such
amount, Administrative Agent may, but shall not be obligated to, make payment
thereof, and Borrower shall, on demand, reimburse Administrative Agent for all
sums so expended, and until Administrative Agent has been so reimbursed, such
amount shall be added to the Obligations. 
Notwithstanding the foregoing, Borrower shall not be required to escrow
the insurance premium amounts described above at any time when the insurance
required to be maintained pursuant to this Agreement is provided under a
blanket policy in accordance with Schedule 5.5 hereof and the premiums in
respect of such blanket policy are paid or caused to be paid at least sixty (60)
days before such premiums become due and payable, provided that upon the
request of Administrative Agent from time to time made, Borrower shall furnish
Administrative Agent with evidence reasonably satisfactory to Administrative
Agent that such blanket policy is in full force and effect and that the
premiums have been paid as required hereby.

 

ARTICLE VI

NEGATIVE COVENANTS.

 

The Borrower hereby covenants and agrees with
the Administrative Agent and each Lender that, as long as any Loans remain
unpaid or the Commitments
remain outstanding:

 

71

 

6.1          Liens.  The Borrower shall not create, incur, assume
or suffer to exist, any Lien upon any of its Property except:

 

(1)           Permitted Encumbrances; and

 

(2)           Other Liens which are the subject of
a Good Faith Contest.

 

6.2          Indebtedness.  Borrower shall not incur any Indebtedness
other than the Permitted Debt.

 

6.3          Fundamental Change.

 

(1)           The Borrower shall not do any or all
of the following: merge or consolidate with any Person, form any Subsidiary,
enter into a Joint Venture, partnership or any other similar business
relationship with any other Person, or sell, assign, lease or otherwise effect
a Disposition, whether in one transaction or in a series of transactions, of
all or substantially all of its Property and assets, whether now owned or
hereafter acquired, or enter into any agreement to do any of the foregoing.

 

(2)           The Borrower shall not engage any
business other than its Purpose.

 

6.4          Disposition.

 

The Borrower shall not cause or permit any of
the following to occur:

 

(1)           Any Change of Control; or

 

(2)           Any Disposition by any member in
Borrower of any of the Capital Stock in Borrower; or

 

(3)           Without the Administrative Agent’s
prior written consent in its sole and absolute discretion, a Disposition of
legal, Beneficial or direct or indirect equitable interests in all or any part
of the Mortgaged Property, except as follows:

 

(i)            Approved
Leases.  Borrower may enter into
Approved Leases for space at the Mortgaged Property.

 

(ii)           Sale
of Personal Property. 
The Borrower may effect a Disposition of Personal Property (other than
Capital Stock as restricted in this Section 6.4),
free from the Lien of the Security Instruments, to the extent such Disposition
of Personal Property will not materially impair the value, utility, or
operation of the subject Mortgaged Property and provided that any new
Personal Property acquired by the Borrower (and not so disposed of) shall be
subject to the Lien of the Security Instruments. The Administrative Agent
shall, from time to time, upon receipt of an Officer’s Certificate requesting
the same and confirming satisfaction of the conditions set forth above, execute
a written instrument in form reasonably satisfactory to the Administrative Agent
and the Borrower to confirm that such Personal Property which is to be, or has
been, sold or disposed of is free from the Lien of the Security Instruments.

 

72

 

(iii)          Immaterial
Transfers.  The
Borrower may, without the consent of the Administrative Agent, (A) make
immaterial Dispositions (including, but not limited to, lot line adjustments)
of portions of the Mortgaged Property to Governmental Authorities for
dedication or public use or, portions of the Mortgaged Property to third
parties for the purpose of erecting and operating additional structures whose
use is integrated with the use of the Mortgaged Property or resolving
encroachment issues, and (B) grant easements, restrictions, covenants,
reservations and rights of way for resolving minor encroachment issues or for
access, water and sewer lines, telephone and telegraph lines, electric lines or
other utilities or for other similar purposes, provided that no such
Disposition set forth in the foregoing clauses (A) and (B) shall
materially impair the value, utility or operation of the subject Mortgaged
Property. In connection with any Disposition permitted pursuant to this Section 6.4(3)(iii),
the Administrative Agent shall execute and deliver any instrument reasonably
necessary or appropriate, in the case of the Dispositions referred to in clause
(A) above, to release the portion of the Mortgaged Property affected by
such Disposition from the Lien of the Security Instruments or, in the case of
clause (B) above, to subordinate the Lien of such Security Instruments to
such easements, restrictions, covenants, reservations and rights of way or
other similar grants upon receipt by the Administrative Agent of:

 

(W)         ten (10) days
prior written notice thereof;

 

(X)          a copy of the
instrument or instruments of Disposition;

 

(Y)          an Officer’s
Certificate stating (1) with respect to any Disposition, the
consideration, if any, being paid for the Disposition and (ii) that such
Disposition does not materially impair the value, utility or operation of the
subject Mortgaged Property; and

 

(Z)           reimbursement of all
of the Administrative Agent’s reasonable costs and expenses incurred in
connection with such Disposition.

 

(iv)          Release
Property.  Provided
that no Potential Default or Event of Default then exists and the conditions
set forth below have been satisfied, Administrative Agent shall from time to
time release from the Lien of the Security Instruments all, but not less than
all, of a Real Property (such Real Property being released, a “Release
Property”) and deliver to the trustee under the deed of trust
constituting the Security Instrument a request for reconveyance and otherwise
cause such trustee to record a duly executed release with respect to such
Release Property in recordable form, a UCC-3 release of security interest and
other such documents as may be reasonably required to release such Release
Property from the Lien of the Security Instruments and the other Loan
Documents.  The release of any Release
Property from the Lien of the Security Instruments shall occur pursuant to an
escrow arrangement with the escrow agent and such arrangement shall be
reasonably satisfactory to Administrative Agent.  Any release pursuant to this Section 6.4(3)(iv) is
conditional upon satisfaction of each of the following conditions as reasonably
determined by Administrative Agent:

 

73

 

(A)          Not less than thirty (30) days nor
more than ninety (90) days prior to the desired release date, the Borrower
shall have given to Administrative Agent a written request for the release
accompanied by (1) a release of Liens and related Loan Documents for the
applicable portion of the Mortgaged Property for execution by the
Administrative Agent, which release documents shall be in a form appropriate in
the applicable state and otherwise satisfactory to the Administrative Agent in
its reasonable discretion; (2) evidence demonstrating to the reasonable
satisfaction of Agents that the LTV Ratio immediately following the requested
release shall not exceed forty percent (40.0%); and (3) an Officer’s
Certificate certifying that the requirement described in Section 6.4(3)(iv)(C) below
is satisfied in connection with such release; and all other evidence,
information and other items reasonably required by Administrative Agent;

 

(B)           Administrative Agent has received
immediately available funds in the full amount of the Release Payment for the
Release Property (and upon receipt by Administrative Agent such sums shall be
applied in accordance with Section 2.5(1)(i) above);

 

(C)           Neither the release from the Lien of
the Security Instruments nor the conveyance of such Release Property will
violate any Requirements of Law (including zoning and subdivision laws and
regulations) and the remaining portion of the Mortgaged Property, and the
conveyance shall be in compliance with all Requirements of Law (including
zoning and subdivision laws and regulations);

 

(D)          The Release Property is simultaneously
conveyed to a party other than Borrower; and if the Release Property is
conveyed to a Transactional Affiliate, the terms and conditions of the
conveyance must comply with Section 6.6 of this Agreement;

 

(E)           Administrative Agent shall have
received such acknowledgements and ratifications from the Borrower Parties, and
other documents, certificates, instruments, opinions or assurances as
Administrative Agent may reasonably request, including, without limitation,
such other instruments, certificates, opinions of counsel and documentation as Administrative
Agent shall reasonably request in order to preserve, confirm or secure the
Liens and security granted to Administrative Agent by the Loan Documents,
including any amendments, modifications or supplements to any of the Loan
Documents and partial release endorsements to the existing Title Policy, as
applicable; and

 

(F)           Borrower shall have paid all
reasonable out-of-pocket costs and expenses incurred by the Administrative
Agent and all reasonable fees and expenses paid to third party consultants
(including reasonable attorneys’ fees and expenses) by Administrative Agent in
connection with such release.

 

6.5          Investments.
The Borrower shall not directly or indirectly make or maintain any Investment
except Investments in cash and Cash Equivalents.

 

6.6          Transactions with
Affiliates. The Borrower shall not directly or indirectly enter into or
permit to exist any transaction (including, without limitation, the purchase,
sale, lease or exchange of any property or the rendering of any service) with (1) a
holder or holders of more than five percent (5%) of any class of Capital Stock
of Station Casinos, Inc., or its constituent

 

74

 

equity holders; or (2) with
any Affiliate of the foregoing (a “Transactional Affiliate”), except (y) as
set forth on Schedule 6.6 or (z) upon prior notice to Administrative Agent
and upon fair and reasonable terms no less favorable to the Borrower than would
be obtained in a comparable arm’s-length transaction with a Person not a Transactional
Affiliate.

 

6.7          Modifications to
Organizational Documents and Other Material Agreements.  The Borrower shall not, and shall not permit
any of the other Borrower Parties to, Modify any of their respective
Organizational Documents or any Material Agreements, in each case without the
Administrative Agent’s prior written consent, other than (a) Modifications
necessary to clarify existing provisions of such Organizational Documents or
Material Agreements; and (b) Modifications which would have no adverse
effect on the rights or interests of Administrative Agent or Lenders in
conjunction with the Loans or under the Loan Documents and would not change in
any material respect the rights and obligations of the parties to such
Organizational Documents or the Material Agreements.

 

6.8          Restricted
Payments.  Borrower shall not make
any Distributions unless no Potential Default or Event of Default has occurred
and is then continuing or is expected to result from making such Distribution
and such Distribution consists of one or more of the following:

 

(i)          the Closing Date
Distribution;

 

(ii)         Permitted Tax
Distributions;

 

(iii)        Distributions
of the balance of the Net Sale Proceeds of the sale of a Real Property upon
compliance with all conditions to the Release of such Real Property (including
payment to Administrative Agent of the Release Payment (and the accrued and
unpaid interest due in conjunction therewith pursuant to Section 2.5(3) of
this Agreement); and

 

(iv)        Distributions
of the amounts paid to Borrower pursuant to Section 5.15(2)(iii) of
this Agreement.

 

6.9          Financial
Covenants. LTV Ratio.  At all times, the LTV Ratio shall not exceed
40.0%, based on the most recent Appraisals for the Mortgaged Property.

 

6.10        Sale Leaseback.
The Borrower shall not enter into any sale and leaseback transaction covering
any Real Property.

 

6.11        Negative Pledges.  The Borrower shall not enter into or suffer
to exist or become effective any agreement prohibiting or limiting the ability
of the Borrower to create, incur, assume or suffer to exist any Lien upon any
of its property, assets or revenues, whether now owned or hereafter acquired,
to secure the Obligations, including any agreement requiring any other
Indebtedness or Contractual Obligation of the Borrower to be equally and
ratably secured with the Obligations.

 

6.12        Modifications.  The Borrower shall not make any alteration or
other modification to any Improvement on any Real Property or develop or
construct any new Improvements on any Real Property, in an amount in excess of
$2,500,000, in each case without the prior written consent of Administrative
Agent, which consent Administrative Agent may withhold in its sole

 

75

 

and absolute discretion;
provided, however, that the Borrower shall be permitted to demolish any
Improvements on any Real Property, regardless of the cost of such demolition,
without the consent of Administrative Agent, provided that, (a) prior to
commencing such demolition, (i) Borrower shall deliver to Agents evidence
that Borrower has secured all consents, approvals, permits and other
authorizations from all applicable Governmental Authorities necessary to
perform such demolition in compliance with all Requirements of Law, including,
without limitation, (w) evidence of compliance with all applicable
provisions of NRS Sections 618.750 et seq.
relating to containment and removal of asbestos and asbestos containing
materials from any Improvements to be demolished that contain asbestos or
asbestos containing materials and all requirements imposed in connection with
such statutory provisions, together with copies of all written notifications
made to and permits obtained from the Department of Air Quality and
Environmental Management of the Environmental Health Division of the Southern
Nevada Health District (together with any successor agency, the “Department of
Air Quality”) with respect to asbestos or asbestos-containing materials
pursuant to the applicable regulations issued by the Department of Air Quality,
(x) evidence of compliance with all applicable provisions of Clark County
Code Section 30.32.040 concerning the implementation and maintenance of
appropriate dust palliative measures with respect to control of fugitive dust
released during any such demolition work to the extent required, together with
copies of all written notifications made to and permits obtained from the
Department of Air Quality for dust control in connection with such demolition
pursuant to the applicable regulations issued by the Department of Air Quality,
(y) evidence of compliance with all applicable provisions of Clark County
Code Section 24.40.020 to the extent required if any such demolition work
involves the discharge of wastewater or any pollutant to the stormwater system,
together with a copy of the discharge permit(s) required to be obtained
from the Division of Environmental Protection (“NDEP”) of the State of Nevada
Department of Conservation and Natural Resources in connection with any such
discharge, and (z) to the extent any such demolition work entails the
removal or closure of underground storage tanks or the disturbance, movement or
removal of surface or subsurface soils or underground water that have been
contaminated with Hazardous Materials, evidence that such removal, closure,
disturbance, movement and/or removal complies with all requirements of and
regulations promulgated pursuant to NRS Chapter 445A and all rules, regulations
and requirements issued by NDEP and the Department of Air Quality to the extent
required; and (ii) Borrower shall certify to Agent and the Lenders in
writing that no other consents, approvals, permits or authorizations from any
Governmental Authority, and no outstanding conditions to the consents,
approvals, permits and other authorizations presented to Agents, exist or are
required to perform such demolition in compliance with all Requirements of Law;
and (b) promptly following the completion of such demolition, Borrower
shall certify to Agents and the Lenders in writing that such demolition was performed
in material compliance with all Requirements of Law and, upon request of any
Agent, Borrower shall deliver to such Agent a copy of any certifications,
closure letters or other forms of approval or sign-off required to be obtained
from applicable Governmental Authorities under applicable Requirements of Law
in connection with the performance or completion of such demolition.  Borrower shall notify Agents if it (x) receives
any written notice from NDEP, the Department of Air Quality, the State Fire Marshal,
or any other Governmental Authority having jurisdiction over any permitted
demolition activities or the effects of such activities on the environmental
condition of the Mortgaged Property, including any removal from the Mortgaged
Property to an offsite facility of any removed underground storage tank or
contaminated soil, of the violation or alleged violation

 

76

 

of NRS Chapter 444 (and, in the
event of any violation arising under NRS Chapter 444, any lien claim filed or
recorded or any other written notice relating to any lien that may be imposed
on the Mortgaged Property or any portion thereof as a result of such violation
pursuant to NRS Section 444.520), NRS Chapters 445A or 445B, NRS Sections
459.400 et seq., NRS Chapter 477 or NRS Chapter
618, or (y) files any written application pursuant to NRS Section 459.634
to participate in the state voluntary remediation Program (as defined in NRS Section 459.624)
or pursuant to Nevada Administrative Code Section 590.700 to obtain
assistance in the cleanup of soil contamination, to the extent Borrower is
eligible to file any such application.

 

6.13        Interest Rate
Contracts. The Borrower shall not enter into any Interest Rate Contract
other than the Required Interest Rate Contracts.

 

ARTICLE VII

EVENTS OF DEFAULT.

 

7.1          Event of Default.  Each of the following shall constitute an
event of default under this Agreement (an “Event of Default”):

 

(1)           The Borrower (i) shall fail to
make any payment of principal or interest on the Loans (including any mandatory
prepayments under Section 2.5(1)), or (ii) shall fail to pay
any other Obligation within five days of the date when due; or

 

(2)           Any representation or warranty made
or deemed made by any Borrower Party in any Loan Document or by any Borrower
Party (or any of its officers) in connection with any Loan Document shall prove
to have been incorrect in any material respect when made or deemed made; or

 

(3)           Any of the Borrower Parties shall
default in the observance or performance of any covenant or agreement contained
in Article VI; or

 

(4)           Any
Borrower Party shall fail to perform or observe any term, covenant or agreement
contained in this Agreement or in any other Loan Document (other than those
that are otherwise the subject of an Event of Default under this Section 7.1),
if such failure shall remain unremedied for 30 days after the date on which
written notice thereof shall have been given to the Borrower by the
Administrative Agent; or

 

(5)           The Borrower shall fail to make any
payment on any other Indebtedness (other than the Obligations), and in each
such case, such failure relates to Indebtedness having a principal amount of
$1,000,000 or more, when the same becomes due and payable (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise); or (ii) any
other event shall occur or condition shall exist under any agreement or
instrument relating to any Indebtedness of the Borrower having a principal
amount of $1,000,000 or more, if the effect of such event or condition is to
accelerate, or to permit the acceleration of, the maturity of such
Indebtedness; or (iii) any Indebtedness of the Borrower having a principal
amount of $1,000,000 or more shall become or be declared to be due and payable,
or required to be prepaid or repurchased (other than by a regularly scheduled
required prepayment), prior to the stated maturity thereof; or

 

77

 

(6)           (i) if any Borrower Party shall
generally not pay its debts as such debts become due, shall admit in writing
its inability to pay its debts generally, (ii) if any Borrower Party shall
make a general assignment for the benefit of creditors, (iii) if any
proceeding shall be instituted by or against any Borrower Party seeking to
adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief or composition of
it or its debts under any Requirement of Law relating to bankruptcy, insolvency
or reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a custodian, receiver, trustee or other similar
official for it or for any substantial part of its property; provided,
however, in the case of any such proceedings instituted against a Borrower
Party (but not instituted by any Borrower Party), either such proceedings shall
remain undismissed or unstayed for a period of sixty (60) days or any of the
actions sought in such proceedings shall occur, or (iv) any Borrower Party
shall take any corporate, partnership or company action to authorize any of the
actions set forth above in clauses (i), (ii) and (iii) of this Section 7.1(6);
or

 

(7)           any final judgment or order (or other
similar process) involving, in any single case or in the aggregate, an amount
in excess of $2,500,000 in the case of a money judgment, to the extent not
covered by insurance, or that could reasonably be expected to have a Material
Adverse Effect or a Property Material Adverse Effect, in the case of a
non-monetary judgment, shall be rendered against Borrower by a court having
jurisdiction, and such judgment or order shall continue unsatisfied and in
effect for a period of thirty (30) days without being vacated, discharged,
satisfied, or stayed or bonded pending appeal; or

 

(8)           (i) an ERISA Event shall occur
and the amount of all liabilities and deficiencies resulting therefrom that are
or are reasonably likely to be imposed on the Borrower or any ERISA Affiliate,
whether or not assessed, exceeds $1,000,000 in the aggregate, (ii) the
commencement or increase of contributions to, or the adoption of or the
amendment of a Pension Plan by Borrower or an ERISA Affiliate which has
resulted or could reasonably be expected to result in an increase in Unfunded
Pension Liability among all Pension Plans in an aggregate amount in excess of $1,000,000 or (iii) any of
Borrower Parties or an ERISA Affiliate shall fail to pay when due, after the
expiration of any applicable grace period, any installment payment with respect
to its withdrawal liability under Section 4201 of ERISA under a
Multiemployer Plan, which has resulted or could reasonably be expected to
result in a Material Adverse Effect; or

 

(9)           Any Guarantor shall attempt to
rescind or revoke its Guaranty, with respect to future transactions or
otherwise, or shall fail to observe or perform any term or provision of its
Guaranty; or

 

(10)         Any Event of Default shall occur under
any of the other Loan Documents; or

 

(11)         There shall occur a Change of Control;
or

 

(12)         Borrower shall have entered into one or
more consent or settlement decrees or agreements or similar arrangements with a
Governmental Authority or one or more judgments, orders, decrees or similar
actions shall have been entered against Borrower based on

 

78

 

or arising from the violation
of or pursuant to any Hazardous Materials Laws, or the generation, storage,
transportation, treatment, disposal or Release of any Contaminant and, in
connection with all the foregoing, the Borrower is likely to incur uninsured
environmental liabilities and costs in excess of $2,500,000 in the aggregate.

 

7.2          Remedies.

 

(1)           If any Event of Default shall occur
and be continuing, the Administrative Agent may (or at the direction of the
Required Lenders shall): (i) declare the outstanding principal balance of
the Loans and interest accrued but unpaid thereon and all other Obligations
immediately due and payable, without demand upon or presentment to any of the
Borrower Parties, which are expressly waived by the Borrower Parties; (ii) exercise,
on behalf of the Secured Parties, all rights and remedies under the Guaranty,
the Pledge Agreement, the Assignment of Interest Rate Contract, the Assignment
of Contracts, the Security Instruments and any other collateral documents
entered into with respect to the Loans, (iii) declare that all or any portion of the
Commitments be terminated; and (iv) immediately exercise all
rights, powers and remedies available at law, in equity or otherwise,
including, without limitation, under the other Loan Documents, all of which
rights, powers and remedies are cumulative and not exclusive; provided,  however, that upon the occurrence of
any of the Events of Default specified in Sections 7.1(6)(ii) and 7.1(6)(iii),
the Commitments of each Lender to make Loans and the commitments of each Lender
shall each automatically be terminated and the Loans, all such interest and all
such amounts and Obligations shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which
are hereby expressly waived by the Borrower.

 

(2)           Upon the occurrence and during the
continuance of an Event of Default, with respect to the Account Collateral, the
Administrative Agent may:

 

(i)         without
notice to the Borrower, except as required by law, and at any time or from time
to time, charge, set-off and otherwise apply all or any part of the Account
Collateral against the Obligations, or any operating or capital expenses with
respect to the Mortgaged Property or any part thereof;

 

(ii)        in
the Administrative Agent’s sole discretion, at any time and from time to time,
exercise any and all rights and remedies available to it under this Agreement,
and/or as a secured party under the UCC;

 

(iii)       demand,
collect, take possession of or receipt for, settle, compromise, adjust, sue
for, foreclose or realize upon the Account Collateral (or any portion thereof)
as the Administrative Agent may determine in its sole discretion; and

 

(iv)       take all other actions
provided in, or contemplated by, this Agreement.

 

(3)           With respect to the Borrower, the
Account Collateral, and the Mortgaged Property, nothing contained herein or in
any other Loan Document shall be construed as requiring the Administrative
Agent to resort to the Mortgaged Property for the satisfaction of any of the
Obligations, and, the Administrative Agent may seek satisfaction out of the
Mortgaged

 

79

 

Property or any part thereof,
in its absolute discretion in respect of the Obligations.  In addition, the Administrative Agent shall
have the right from time to time to partially foreclose this Agreement and the
Security Instruments in any manner and for any amounts secured by this
Agreement or the Security Instruments then due and payable as determined by the
Administrative Agent in its sole discretion; provided, however, that the
Administrative Agent shall issue a “Notice of Exclusive Control” pursuant to
the Deposit Account Control Agreement only upon the occurrence and during the
continuance of an Event of Default. 
Notwithstanding one or more partial foreclosures, the Mortgaged Property
shall remain subject to this Agreement and the Security Instruments to secure
payment of sums secured by this Agreement and the Security Instruments and not
previously recovered.

 

ARTICLE VIII

THE ADMINISTRATIVE AGENT

 

8.1          Appointment.  Each Lender hereby irrevocably designates and
appoints the Administrative Agent as the agent of such Lender under the Loan
Documents and each such Lender hereby irrevocably authorizes the Administrative
Agent, as the agent for such Lender, to take such action on its behalf under
the provisions of the Loan Documents and to exercise such powers and perform
such duties as are expressly delegated to the Administrative Agent by the terms
of the Loan Documents, together with such other powers as are reasonably
incidental thereto.  Notwithstanding any
provision to the contrary elsewhere in the Loan Documents, the Administrative
Agent shall not have any duties or responsibilities, except those expressly set
forth herein or therein, or any fiduciary relationship with any Lender, and no
implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into the Loan Documents or otherwise exist against
the Administrative Agent.

 

8.2          Delegation of
Duties.  The Administrative Agent may
execute any of its duties under the Loan Documents by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties.  With
respect to the Lenders, the Administrative Agent shall not be responsible for
the negligence or misconduct of any agents or attorneys-in-fact selected by it
with reasonable care.

 

8.3          Exculpatory
Provisions.  None of the
Administrative Agent, the other Agents, nor any of their respective officers,
directors, employees, agents, attorneys-in-fact or affiliates shall be (1) liable
to the Lenders for any action lawfully taken or omitted to be taken by it or
such Person under or in connection with the Loan Documents (except for its or
such Person’s own gross negligence or willful misconduct), or (2) responsible
in any manner to any of the Lenders for any recitals, statements,
representations or warranties made by the Borrower Parties or any officer
thereof contained in the Loan Documents or in any certificate, report,
statement or other document referred to or provided for in, or received by the
Administrative Agent under or in connection with the Loan Documents or for the
value, validity, effectiveness, genuineness, enforceability or sufficiency of
the Loan Documents or for any failure of the Borrower Parties to perform their
obligations hereunder or thereunder.  The
Administrative Agent and the other Agents shall not be under any obligation to
any Lender to ascertain or to inquire as to the observance or performance of
any of the agreements contained in, or conditions of, the Loan Documents or to
inspect the properties, books or records of the Borrower Parties.

 

80

 

8.4          Reliance by the
Agents.  Each of the Agents shall be
entitled to rely, and shall be fully protected in relying, upon any note,
writing, resolution, notice, consent, certification, affidavit, letter,
cablegram, telegram, telecopy, telex or teletype message, statement, order or
other document or conversation reasonably believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons
and upon advice and statements of legal counsel (including, without limitation,
counsel to the Borrower), independent accountants and other experts selected by
such Agent.  As to the Lenders:  (1) the Administrative Agent shall be
fully justified in failing or refusing to take any action under the Loan
Documents unless it shall first receive such advice or concurrence of one
hundred percent (100%) of the Lenders (or, if a provision of this Agreement
expressly provides that a lesser number of the Lenders may direct the action of
the Administrative Agent, such lesser number of Lenders) or it shall first be
indemnified to its satisfaction by the Lenders ratably in accordance with their
respective Pro Rata Shares against any and all liability and expense which may
be incurred by it by reason of taking or continuing to take any action (except
for liabilities and expenses resulting from the Administrative Agent’s gross
negligence or willful misconduct), and (2) the Administrative Agent shall
in all cases be fully protected in acting, or in refraining from acting, under
the Loan Documents in accordance with a request of one hundred percent (100%)
of the Lenders (or, if a provision of this Agreement expressly provides that
the Administrative Agent shall be required to act or refrain from acting at the
request of a lesser number of the Lenders, such lesser number of Lenders), and
such request and any action taken or failure to act pursuant thereto shall be
binding upon all the Lenders.

 

8.5          Notice of Default.  The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Potential Default or Event
of Default hereunder unless the Administrative Agent has received notice from a
Lender or the Borrower referring to the Loan Documents, describing such Potential
Default or Event of Default and stating that such notice is a “notice of
default.”  In the event that the
Administrative Agent receives such a notice and a Potential Default or Event of
Default has occurred, the Administrative Agent shall promptly give notice
thereof to the Lenders.  The
Administrative Agent shall take such action with respect to such Potential
Default or Event of Default as shall be reasonably directed by the Required
Lenders; provided that, unless and until the Administrative Agent shall
have received such directions, the Administrative Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with
respect to such Potential Default or Event of Default as it shall deem
advisable in the best interest of the Lenders (except to the extent that this
Agreement, the Pledge Agreements, the Assignment of Interest Rate Contract, the
Assignment of Contracts,  or the
Guaranties expressly require that such action be taken or not taken by the
Administrative Agent with the consent or upon the authorization of the Required
Lenders or such other group of Lenders, in which case such action will be taken
or not taken as directed by the Required Lenders or such other group of Lenders
or Lenders).

 

8.6          Non-Reliance on
Agents and Other Lenders.  Each
Lender expressly acknowledges that none of the Administrative Agent, the other
Agents nor any of their respective officers, directors, employees, agents,
attorneys-in-fact or affiliates has made any representations or warranties to
it and that no act by the Administrative Agent or the other Agents hereinafter
taken, including any review of the affairs of the Borrower Parties, shall be
deemed to constitute any representation or warranty by the Administrative Agent
or the other Agents to any Lender.  Each
Lender represents to the Administrative Agent and the other Agents that it has,

 

81

 

independently and without
reliance upon the Administrative Agent, the other Agents or any other Lender,
and based on such documents and information as it has deemed appropriate, made
its own appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Borrower Parties and
made its own decision to make its loans hereunder and enter into this
Agreement.  Each Lender also represents
that it will, independently and without reliance upon the Administrative Agent,
the other Agents 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
analysis, appraisals and decisions in taking or not taking action under this
Agreement, and to make such investigation as it deems necessary to inform
itself as to the business, operations, property, financial and other condition
and creditworthiness of the Borrower Parties. 
Except for notices, reports and other documents expressly required to be
furnished to the Lenders by the Administrative Agent hereunder, the Administrative
Agent and the other Agents shall not have any duty or responsibility to provide
any Lender with any credit or other information concerning the business,
operations, property, financial and other condition or creditworthiness of the
Borrower Parties which may come into the possession of the Administrative Agent
or any other Agent or any of their respective officers, directors, employees,
agents, attorneys-in-fact or affiliates.

 

8.7          Indemnification.  The Lenders agree to indemnify the
Administrative Agent and the other Agents in their respective capacity as such
(to the extent not reimbursed by the Borrower and without limiting the
obligation of the Borrower to do so), ratably according to the respective
amounts of their Pro Rata Shares, from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind whatsoever which may at any time
(including without limitation at any time following the payment of the
Obligations) be imposed on, incurred by or asserted against the Administrative
Agent or the other Agents in any way relating to or arising out of the Loan
Documents or any documents contemplated by or referred to herein or the
transactions contemplated hereby or any action taken or omitted by the
Administrative Agent or the other Agents under or in connection with any of the
foregoing; provided that no Lender shall be liable for the payment of
any portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from the
Administrative Agent’s or any other Agent’s gross negligence or willful
misconduct, respectively.  The provisions
of this Section 8.7 shall survive the payment of the Obligations and
the termination of this Agreement.

 

8.8           Agents in Their Individual
Capacity.  The Administrative Agent,
the other Agents and their affiliates may make loans to, accept deposits from
and generally engage in any kind of business with any of the Borrower Parties
or any of their respective Subsidiary Entities and Affiliates as though the
Administrative Agent and the other Agents were not, respectively, the
Administrative Agent, the Joint Lead Arranger or an Agent hereunder.  With respect to such loans made or renewed by
them and any Note issued to them, the Administrative Agent and the other Agents
shall have the same rights and powers under the Loan Documents as any Lender
and may exercise the same as though it were not the Administrative Agent, the
Joint Lead Arranger or an Agent, respectively, and the terms “Lender” and “Lenders”
shall include the Administrative Agent, the Joint Lead Arrangers and each other
Agent in its individual capacity.

 

8.9          Successor
Administrative Agent.  The
Administrative Agent may resign as Administrative Agent under the Loan
Documents upon thirty (30) days’ notice to the Lenders.  If

 

82

 

the Administrative Agent shall
resign, then the Lenders (other than the Lender resigning as Administrative
Agent) shall (with, so long as there shall not exist and be continuing an Event
of Default, the consent of the Borrower, such consent not to be unreasonably
withheld or delayed) appoint a successor agent or, if the Lenders are unable to
agree on the appointment of a successor agent, the Administrative Agent shall
appoint a successor agent for the Lenders whereupon such successor agent shall
succeed to the rights, powers and duties of the Administrative Agent, and the
term “Administrative Agent” shall mean such successor agent effective upon its
appointment, and the former Administrative Agent’s rights, powers and duties as
Administrative Agent shall be terminated, without any other or further act or
deed on the part of such former Administrative Agent or any of the parties to
this Agreement or any of the Loan Documents or successors thereto.  After any retiring Administrative Agent’s
resignation hereunder as Administrative Agent, the provisions of the Loan
Documents shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Administrative Agent under the Loan Documents.

 

8.10        Limitations on
Agents Liability.  The Lead Arranger,
in such capacity, shall not have any right, power, obligation, liability,
responsibility or duty under this Agreement or the other Loan Documents.

 

8.11        Collateral.  Each Secured Party, by its acceptance of the
benefits of the Loan Documents, agrees that it shall have no right individually
to realize upon any of the Collateral hereunder, it being understood and agreed
by such Secured Party that all rights and remedies hereunder may be exercised
solely by the Administrative Agent for the benefit of Secured Parties in
accordance with the terms of this Agreement, the Security Instruments and the other
Loan Documents.

 

ARTICLE IX

EXCULPATION

 

9.1          Exculpated Parties.  Except as set forth in this Article IX
and the Guaranty, no personal liability shall be asserted, sought or obtained
by Administrative Agent or any Lender or enforceable against (i) any
Affiliate of Borrower, (ii) any Person owning, directly or indirectly, any
legal or beneficial interest in Borrower or any Affiliate of Borrower or (iii) any
direct or indirect partner, member, principal, officer, Controlling Person,
beneficiary, trustee, advisor, shareholder, employee, agent, Affiliate or
director of any Persons described in clauses (i) and (ii) above
(collectively, the “Exculpated Parties”) and none of the Exculpated
Parties shall have any personal liability (whether by suit, deficiency judgment
or otherwise) in respect of the Obligations, this Agreement, the Security
Instruments, the Notes, the Mortgaged Property or any other Loan Document, or
the making, issuance or transfer thereof, all such liability, if any, being
expressly waived by Administrative Agent and the Lenders.  The foregoing limitation shall not in any way
limit or affect Administrative Agent’s or any Lender’s right to any of the
following and neither Administrative Agent nor any Lender shall be deemed to
have waived any of the following:

 

(a)               Full
recourse against Borrower;

 

(b)               Foreclosure
of the lien of this Agreement and the Security Instruments in accordance with
the terms and provisions set forth herein and in the Security Instruments;

 

83

 

(c)               Action against any other security at any time given to
secure the payment of the Notes and the other Obligations;

 

(d)               Exercise of any other remedy set forth in this
Agreement or in any other Loan Document which is not inconsistent with the
terms of this Article IX;

 

(e)               Any right which Administrative Agent or the Lenders
may have under Sections 506(a), 506(b), 1111(b) or
any other provisions of the Bankruptcy Code to file a claim for the full amount
of the Obligations secured by this Agreement and the Security Instruments or to
require that all collateral shall continue to secure all of the Obligations
owing to Lenders in accordance with the Loan Documents; or

 

(f)                The liability of any given Exculpated Party with
respect to any separate written guaranty or agreement given by any such
Exculpated Party in connection with the Loans (including, without limitation,
the Guaranty).

 

9.2           Carveouts From
Non-Recourse Limitations. 
Notwithstanding the foregoing or anything in this Agreement or any of
the Loan Documents to the contrary, there shall at no time be any limitation on
Borrower’s or any Guarantor’s liability for the payment, in accordance with the
terms of this Agreement, the Notes, the Security Instruments and the other Loan
Documents and the Specified Interest Rate Contracts, to Administrative Agent
and the Secured Parties of:

 

(a)               Borrower’s
obligation to maintain the Minimum Balance in the Interest Reserve Account at
all times during the term of the Facility;

 

(b)               any
loss, damage, cost or expense incurred by or on behalf of the Secured Parties
by reason of the fraudulent acts of Borrower or any Affiliate of Borrower;

 

(c)           Proceeds
which Borrower or any Affiliate of Borrower has received and to which
Administrative Agent and/or the Secured Parties are entitled pursuant to the
terms of this Agreement or any of the Loan Documents or the Specified Interest
Rate Contracts to the extent the same have not been applied toward payment of
the Obligations, or used for the repair or replacement of the Mortgaged Property
in accordance with the provisions of this Agreement;

 

(d)           all
loss, damage, cost or expense as incurred by Administrative Agent and/or the
Secured Parties and arising from any intentional misrepresentation of Borrower
or any Affiliate of Borrower;

 

(e)           any
misappropriation of rents or security deposits or other funds relating to the
Mortgaged Properties by Borrower or any of its Affiliates;

 

(f)            any
loss, damage, cost or expense incurred by or on behalf of the Secured Parties
by reason of all or any part of the Mortgaged Property, the Account Collateral
or the Rate Protection Collateral being encumbered by a Lien or Transferred by
reason of the acts of Borrower or any Affiliate of Borrower from and after the
date hereof (other than this Agreement and the Security Instruments) in
violation of the Loan Documents;

 

84

 

(g)           after
the occurrence and during the continuance of an Event of Default, any rents,
issues, profits and/or income from the Mortgaged Property collected by Borrower
or any Affiliate of Borrower (other than rent paid directly to Administrative
Agent pursuant to any notice of direction delivered to tenants of the Mortgaged
Property) and not applied to payment of the Obligations or used to pay normal
and verifiable operating expenses of the Mortgaged Property or otherwise
applied in a manner permitted under the Loan Documents;

 

(h)           any
loss, damage, cost or expense incurred by or on behalf of the Secured Parties
by reason of physical damage to the Mortgaged Property from intentional waste
or other willful destruction  committed
by Borrower or any Affiliate of Borrower;

 

(i)            any
loss, damage, cost or expense incurred by or on behalf of the Secured Parties
by reason of any breach of a representation set forth in Section 4.15
or the failure of Borrower to comply with any of the provisions of Section 5.9;

 

(j)            any
loss, damage, cost or expense incurred by or on behalf of the Secured Parties
by reason of any breach of a representation set forth in Section 4.25
or any covenant set forth in Section 5.14;

 

(k)           any
loss, damage, cost or expense incurred by or on behalf of the Secured Parties
by reason of the failure of Borrower to pay in full the Release
Payment for a Real Property, in
accordance with the provisions of Section 6.4(3)(iv);

 

(l)            all
of the Obligations in the event of: (i) any Borrower Party
filing a voluntary petition under the Bankruptcy Code or any other Federal or
state bankruptcy or insolvency law; (ii) any Borrower Party filing an
answer consenting to or otherwise acquiescing in or joining in any involuntary
petition filed against it, by any other Person under the Bankruptcy Code or any
other Federal or state bankruptcy or insolvency law, or soliciting or causing
to be solicited, or colluding with (or any of such Borrower Party’s Affiliates
colluding with) petitioning creditors to file any such involuntary petition
from any Person; (iii) any Borrower Party consenting to or acquiescing in
or joining in an application for the appointment of a custodian, receiver,
trustee, or examiner for any Borrower Party or any portion of the Mortgaged
Property; (iv) any Borrower Party making an assignment for the benefit of
creditors, or admitting, in writing or in any legal proceeding, that it is
insolvent;

 

(m)          any
and all liabilities, obligations, losses, damages, costs and expenses
(including, without limitation, reasonable attorneys’ fees, causes of action,
suits, claims, demands and adjustments of any nature or description whatsoever)
which may at any time be imposed upon, incurred by or awarded against
Administrative Agent and/or the Secured Parties, in the event (and arising out
of such circumstances) that Borrower should raise any defense, counterclaim
and/or allegation in any foreclosure action by Administrative Agent relative to
the Mortgaged Property, the Account Collateral or the Rate Protection
Collateral or any part thereof which is found by a court to have been raised by
Borrower in bad faith or to be without basis in fact or law; or

 

85

 

(n)           reasonable
attorney’s fees and expenses actually incurred by Administrative Agent and/or
the Secured Parties in connection with any successful suit or other action
filed or commenced on account of any of the foregoing clauses (a) through
(m).

 

ARTICLE X

MISCELLANEOUS PROVISIONS

 

10.1         No Assignment by Borrower.  None of the Borrower Parties may assign its
rights or obligations under this Agreement or the other Loan Documents without
the prior written consent of the Administrative Agent and one hundred percent
(100%) of the Lenders.  Subject to the
foregoing, all provisions contained in this Agreement and the other Loan
Documents and in any document or agreement referred to herein or therein or
relating hereto or thereto shall inure to the benefit of the Administrative
Agent and each Lender, their respective successors and assigns, and shall be
binding upon each of the Borrower Parties and such Person’s successors and
assigns.

 

10.2         Modification.

 

(1)           Neither this
Agreement nor any other Loan Document may be Modified or waived unless such
Modification or waiver is in writing and signed by the Administrative Agent and
the Borrower and, except for the Modifications and waivers requiring consent of
one hundred percent (100%) of the Lenders referred to below, the Required
Lenders, and, with respect to Modifications and waivers that would have the
effect of altering the ratable treatment of
Obligations arising under the Loan Documents and Obligations arising under
Specified Interest Rate Contracts or the definition of “Interest Rate Contract,”
“Obligations,” “Secured Party” or “Specified Interest Rate Contract,” in each
case in a manner adverse to any Counterparty to a Specified Interest Rate
Contract  with Obligations then
outstanding without the written consent of any such Counterparty.  No such Modification or waiver shall, without
the prior written consent of one hundred percent (100%) of the Lenders:  (i) reduce the principal of, or rate of
interest on, the Loans or fees payable to the Lenders hereunder or under the
Fee Letter, (ii) except as expressly contemplated by Section 10.8
below, modify the Pro Rata Share of any Lender, (iii) Modify the
definition of “Required Lenders,” (iv) extend or waive any scheduled payment
date for any principal, interest or fees, (v) release any Guarantor from
its obligations under the Guaranty entered into by it, release Borrower from
its obligation to repay the Loans, release the Pledgor under the Pledge
Agreement or release any portion of the collateral pledged under the Pledge
Agreement, (vi) Modify this Section 10.2, or (vii) Modify
any provision of the Loan Documents which by its terms requires the consent or
approval of one hundred percent (100%) of the Lenders.

 

(2)           It is expressly
agreed and understood that the election by the Required Lenders to accelerate
amounts outstanding hereunder and/or to terminate the obligation of the Lenders
to make Loans hereunder shall not constitute a Modification or waiver of any
term or provision of this Agreement or any other Loan Document.  No Modification of any provision of the Loan
Documents relating to the Administrative Agent shall be effective without the
written consent of the Administrative Agent.

 

86

 

10.3         Cumulative Rights; No Waiver.  The rights, powers and remedies of the
Administrative Agent and the Lenders hereunder and under the other Loan
Documents are cumulative and in addition to all rights, power and remedies
provided under any and all agreements among the Borrower Parties, the
Administrative Agent and the Lenders relating hereto, at law, in equity or
otherwise.  Any delay or failure by
Administrative Agent and the Lenders to exercise any right, power or remedy
shall not constitute a waiver thereof by the Administrative Agent or the
Lenders, and no single or partial exercise by the Administrative Agent or the
Lenders of any right, power or remedy shall preclude other or further exercise
thereof or any exercise of any other rights, powers or remedies.

 

10.4         Entire Agreement. 
This Agreement, the Fee Letter, the other Loan Documents and the
schedules, appendices, documents and agreements referred to herein and therein
embody the entire agreement and understanding between the parties hereto and
supersede all prior agreements and understandings relating to the subject
matter hereof and thereof.

 

10.5         Survival.  All
representations, warranties, covenants and agreements contained in this
Agreement and the other Loan Documents on the part of the Borrower Parties
shall survive the termination of this Agreement and shall be effective until
the Obligations are paid and performed in full or longer as expressly provided
herein.

 

10.6         Notices.  All
notices given by any party to the others under this Agreement and the other
Loan Documents shall be in writing unless otherwise provided for herein, and
any such notice shall become effective (1) upon personal delivery thereof,
including, but not limited to, delivery by overnight mail and courier service, (2) three
(3) Business Days after it shall have been mailed by United States mail,
first class, certified or registered, with postage prepaid, or (3) in the
case of notice by a telecommunications device, when properly transmitted, in
each case addressed to the party at the address set forth on Schedule 10.6
attached hereto.  Any party may change
the address to which notices are to be sent by notice of such change to each
other party given as provided herein.

 

10.7         Governing Law. 
This  Agreement  and
the other Loan Documents, except as otherwise expressly provided therein, shall  be  governed  by  and  construed  in  accordance  with  the  laws  of  the  State  of  New York, including General Obligations Law 5-1401, but
otherwise without giving effect to its choice of law rules.

 

10.8         Assignments,
Participations, Syndication, Etc.

 

(1)           With the prior
written consent of the Administrative Agent, such consent not to be
unreasonably withheld or delayed, and, provided there is no Potential Default
or Event of Default then continuing, with prior notice to Borrower, any Lender
may at any time assign and delegate to one or more Eligible Assignees (provided
that no written consent of the Administrative Agent shall be required in
connection with any assignment and delegation by a Lender to an Affiliate of
such Lender) (each an “Assignee”) all or any part of such Lender’s Pro
Rata Share of the Loans and the other Obligations held by such Lender
hereunder, in a minimum amount of $1,000,000, which minimum amount may be an
aggregated amount in the event of simultaneous assignments to or by two or more
funds under common management (or if such Lender’s Pro Rata Share of the Loans
is less than $1,000,000, one hundred percent (100%)

 

87

 

thereof); provided,
however, that the Borrower and the Administrative Agent may continue to deal
solely and directly with such Lender in connection with the interest so
assigned to an Assignee until (i) written notice of such assignment,
together with payment instructions, addresses and related information with
respect to the Assignee, shall have been given to the Borrower and the
Administrative Agent by such Lender and the Assignee; (ii) such Lender and
its Assignee shall have delivered to the Borrower and the Administrative Agent
an Assignment and Acceptance Agreement, (iii) the assignment shall have
been recorded in the Register, and  (iv) the
Assignee has paid to the Administrative Agent a processing fee in the amount of
$3,500.

 

(2)           The Agent shall, on
behalf of the Borrower, maintain a copy of each Assignment and Acceptance
Agreement delivered to it and a register (the “Register”) for the
recordation of the names and addresses of the Lenders and the principal amount
of the Loans owing to each Lender from time to time.  The entries in the Register shall be
conclusive, in the absence of manifest error, and the Borrower, each Lender and
the Administrative Agent shall treat each Person whose name is recorded in the
Register as the owner of the Loans for all purposes of this Agreement.  Upon request from Borrower, the
Administrative Agent shall provide a copy of the Register to Borrower.  From and after the date that the
Administrative Agent notifies the assignor Lender and the Borrower that it has
received an executed Assignment and Acceptance Agreement and payment of the
above-referenced processing fee, and the assignment has been recorded in the
Register:  (i) the Assignee
thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder and under the other Loan Documents have been assigned to
it pursuant to such Assignment and Acceptance Agreement, shall have the rights
and obligations of a Lender under the Loan Documents, (ii) the assignor
Lender shall, to the extent that rights and obligations hereunder and under the
other Loan Documents have been assigned by it pursuant to such Assignment and
Acceptance Agreement, relinquish its rights and be released from its
obligations under the Loan Documents (but shall be entitled to indemnification as
otherwise provided in this Agreement with respect to any events occurring prior
to the assignment) and (iii) this Agreement shall be deemed to be amended
to the extent, but only to the extent, necessary to reflect the addition of the
Assignee and the resulting adjustment of the Pro Rata Shares resulting
therefrom.

 

(3)           Within five Business
Days after its receipt of notice by the Administrative Agent that it has
received an executed Assignment and Acceptance Agreement and payment of the
processing fee (which notice shall also be sent by the Administrative Agent to
each Lender), the Borrower shall, if requested by the Assignee, execute and
deliver to the Administrative Agent, a new Note evidencing such Assignee’s Pro
Rata Share of the Loans.

 

(4)           Any Lender may at
any time sell to one or more commercial banks or other Persons not Affiliates
of the Borrower (a “Participant”) participating interests in the Loans
and the other interests of that Lender (the “Originating Lender”)
hereunder and under the other Loan Documents; provided, however, that (i) the
Originating Lender’s obligations under this Agreement shall remain unchanged, (ii) the
Originating Lender shall remain solely responsible for the performance of such
obligations, and (iii) the Borrower and the Administrative Agent shall
continue to deal solely and directly with the Originating Lender in connection
with the Originating Lender’s rights and obligations under this Agreement and
the other Loan Documents.  In the case of
any such participation, the Participant shall be entitled to the benefit of Sections 2.10,
2.12, and 2.15 (and subject to the burdens of Sections 2.12,
2.13 and 10.8

 

88

 

above) as
though it were also a Lender thereunder, and if amounts outstanding under this
Agreement are due and unpaid, or shall have been declared or shall have become
due and payable upon the occurrence of an Event of Default, each Participant
shall be deemed to have the right of set-off in respect of its participating interest
in amounts owing under this Agreement to the same extent as if the amount of
its participating interest were owing directly to it as a Lender under this
Agreement, and Section 10.10 of this Agreement shall apply to such
Participant as if it were a Lender party hereto.

 

(5)           Notwithstanding any
other provision contained in this Agreement or any other Loan Document to the
contrary, any Lender may assign all or any portion of its Pro Rata Share of the
Loans held by it to any Federal Reserve Lender or the United States Treasury as
collateral security pursuant to Regulation A of the Board of Governors of the
Federal Reserve System and any Operating Circular issued by such Federal
Reserve Lender, provided that any payment in respect of such assigned
Pro Rata Share of the Loans made by the Borrower to or for the account of the
assigning and/or pledging Lender in accordance with the terms of this Agreement
shall satisfy the Borrower’s obligations hereunder in respect to such assigned
Pro Rata Share of the Loans to the extent of such payment.  No such assignment shall release the
assigning Lender from its obligations hereunder.  Notwithstanding anything to the contrary
contained herein, any Lender that is a fund that invests in bank loans may
create a security interest in all or any portion of the sums owing to it and
the Note or Notes held by it to the trustee for holders of obligations owed, or
securities issued, by such fund as security for such obligations or securities,
provided, that unless and until such trustee actually becomes a Lender
in compliance with the other provisions of this Section 10.8, (i) no
such pledge shall release the pledging Lender from any of its obligations under
the Loan Documents and (ii) such trustee shall not be entitled to exercise
any of the rights of a Lender under the Loan Documents even though such trustee
may have acquired ownership rights with respect to the pledged interest through
foreclosure or otherwise.

 

10.9         Counterparts. 
This Agreement and the other Loan Documents may be executed in any
number of counterparts, all of which together shall constitute one agreement.

 

10.10       Sharing of Payments. 
If any Lender shall receive and retain any payment, whether by setoff,
application of deposit balance or security, or otherwise, in respect of the
Obligations in excess of such Lender’s Pro Rata Share thereof, then such Lender
shall purchase from the other Lenders for cash and at face value and without
recourse, such participation in the Obligations held by them as shall be
necessary to cause such excess payment to be shared ratably as aforesaid with
each of them; provided, that if such excess payment or part thereof is
thereafter recovered from such purchasing Lender, the related purchases from
the other Lenders shall be rescinded ratably and the purchase price restored as
to the portion of such excess payment so recovered, but without interest.  Each Lender is hereby authorized by the
Borrower to exercise any and all rights of setoff, counterclaim or bankers’
lien against the full amount of the Obligations, whether or not held by such
Lender.  Each Lender hereby agrees to
exercise any such rights first against the Obligations and only then to any
other Indebtedness of the Borrower to such Lender.

 

10.11       Confidentiality. 
Each Lender agrees to take normal and reasonable precautions and
exercise due care to maintain the confidentiality of all information provided
to it by any of

 

89

 

the Borrower
Parties or by the Administrative Agent on the Borrower Parties’ behalf, in
connection with this Agreement or any other Loan Document, and neither it nor
any of its Affiliates shall use any such information for any purpose or in any
manner other than pursuant to the terms contemplated by this Agreement, except
to the extent such information: (1) was or becomes generally available to
the public other than as a result of a disclosure by any Lender or any
prospective Lender, or (2) was or becomes available from a source other
than the Borrower Parties not known to the Lenders to be in breach of an
obligation of confidentiality to the Borrower Parties in the disclosure of such
information.  Nothing contained herein
shall restrict any Lender from disclosing such information (t) pursuant to
any requirement of any Governmental Authority; (u) pursuant to subpoena or
other court process; (v) when required to do so in accordance with the
provisions of any applicable Requirement of Law; (w) to the extent
reasonably required in connection with any litigation or proceeding to which
the Administrative Agent, any Lender or their respective Affiliates may be
party; (x) to the extent reasonably required in connection with the
exercise of any remedy hereunder or under any other Loan Document; (y) to
such Lender’s independent auditors and other professional advisors; and (z) to
any Participant or Assignee and to any prospective Participant or Assignee, and
to any financial institution that is a direct or indirect contractual
counterparty in swap agreements or such contractual counterparty’s professional
advisor provided that each Participant and Assignee or prospective
Participant or Assignee, and each contractual counterparty or professional
advisor to such contractual counterparty, first agrees to be bound by the
provisions of this Section 10.11.

 

10.12       Consent to Jurisdiction.  ANY LEGAL ACTION OR PROCEEDING WITH RESPECT
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS
OF THE STATE OF NEW YORK LOCATED IN NEW YORK COUNTY OR OF THE UNITED STATES FOR
THE SOUTHERN DISTRICT OF NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS CREDIT
AGREEMENT, EACH OF THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS
CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE
JURISDICTION OF THOSE COURTS.  EACH OF
THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS IRREVOCABLY WAIVES ANY
OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS
AGREEMENT OR ANY DOCUMENT RELATED HERETO. 
EACH OF THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS EACH
AGREE THAT SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS MAY BE MADE
BY ANY MEANS PERMITTED BY NEW YORK LAW.

 

10.13       Waiver of Jury Trial. 
EACH OF THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS WAIVE ITS
RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON
OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, OR
THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR
OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER
PARTY OR ANY PARTICIPANT OR ASSIGNEE, WHETHER WITH RESPECT TO CONTRACT CLAIMS,
TORT CLAIMS, OR OTHERWISE.  EACH OF THE
BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS

 

90

 

AGREE THAT ANY
SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A
JURY.  WITHOUT LIMITING THE FOREGOING,
EACH OF SUCH PARTIES FURTHER AGREES THAT ITS RESPECTIVE RIGHT TO A TRIAL BY
JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM
OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY
OR ENFORCEABILITY OF THIS AGREEMENT, THE OTHER LOAN DOCUMENTS OR ANY PROVISION
HEREOF OR THEREOF.  THIS WAIVER SHALL
APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.

 

10.14       Indemnity.  Whether
or not the transactions contemplated hereby are consummated, the Borrower shall
indemnify and hold the Administrative Agent, the other Agents, the Joint Lead
Arrangers, and each Lender and each of their respective officers, directors,
employees, counsel, agents and attorneys-in-fact (each, an “Indemnified
Person”) harmless from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, charges, expenses
and disbursements (including reasonable attorney’s fees and expenses) of any
kind or nature whatsoever which may at any time (including at any time
following repayment of the Loans and the termination, resignation or
replacement of the Administrative Agent or replacement of any Lender) be
imposed on, incurred by or asserted against any such Person in any way relating
to or arising out of this Agreement or any document contemplated by or referred
to herein, or the transactions contemplated hereby, or any action taken or
omitted by any such Person under or in connection with any of the foregoing,
including with respect to any investigation, litigation or proceeding
(including any insolvency proceeding or appellate proceeding) related to or
arising out of this Agreement or the Loans or the use of the proceeds thereof,
whether or not any Indemnified Person is a party thereto (all the foregoing,
collectively, the “Indemnified Liabilities”); provided, however,
that the Borrower shall have no obligation hereunder to any Indemnified Person
with respect to Indemnified Liabilities to the extent resulting from the gross
negligence or willful misconduct of such Indemnified Person.  Without limiting the foregoing, the Borrower
shall pay all reasonable out-of-pocket expenses (including reasonable fees and
disbursements of outside counsel) (1) of the Administrative Agent incident
to the preparation, negotiation and administration and performance of the Loan
Documents, including any proposed Modifications or waivers with respect
thereto, the due diligence review undertaken in connection therewith, and the
syndication of the Loans (but such expenses shall not include any fees paid to
the syndicate members), and the preservation and protection of the rights of
the Secured Parties and the Administrative Agent under the Loan Documents
(including expenses incurred in creating and perfecting the Lien in favor of
the Administrative Agent pursuant to this Agreement and the other Loan
Documents), and (2) of the Administrative Agent and each of the Lenders
incident to the enforcement of payment of the Obligations, whether by judicial
proceedings or otherwise, including, without limitation, in connection with
bankruptcy, insolvency, liquidation, reorganization, moratorium or other
similar proceedings involving any Borrower Party or a “workout” of the
Obligations.  The agreements in this Section 10.14
shall survive payment of all other Obligations.

 

10.15       Telephonic Instruction. 
Any agreement of the Administrative Agent and the Lenders herein to
receive certain notices by telephone is solely for the convenience and at the
request of the Borrower.  The
Administrative Agent and the Lenders shall be entitled to

 

91

 

reasonably
rely on the authority of any Person purporting to be a Person authorized by the
Borrower to give such notice and the Administrative Agent and the Lenders shall
not have any liability to the Borrower or other Person on account of any action
taken or not taken by the Administrative Agent or the Lenders in reliance upon
such telephonic notice.  The obligation
of the Borrower to repay the Loans shall not be affected in any way or to any
extent by any failure by the Administrative Agent and the Lenders to receive
written confirmation of any telephonic notice or the receipt by the
Administrative Agent and the Lenders of a confirmation which is at variance
with the terms understood by the Administrative Agent and the Lenders to be
contained in the telephonic notice.

 

10.16       Marshalling; Payments Set Aside.  Neither the Administrative Agent nor the
Lenders shall be under any obligation to marshal any assets in favor of any of
the Borrower Parties or any other Person or against or in payment of any or all
of the Obligations.  To the extent that
any of the Borrower Parties makes a payment or payments to the Administrative
Agent or the Lenders, or the Administrative Agent or the Lenders enforce their
Liens or exercise their rights of set-off, and such payment or payments or the
proceeds of such enforcement or set-off or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside or required
(including pursuant to any settlement entered into by the Administrative Agent
in its discretion) to be repaid to a trustee, receiver or any other party in connection
with any insolvency proceeding, or otherwise, then (1) to the extent of
such recovery the obligation or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such enforcement or set-off had not occurred, and (2) each
Lender severally agrees to pay to the Administrative Agent upon demand its
ratable share of the total amount so recovered from or repaid by the
Administrative Agent.

 

10.17       Set-off.  In
addition to any rights and remedies of the Lenders provided by law, if an Event
of Default exists, each Lender is authorized at any time and from time to time,
without prior notice to the Borrower, any such notice being waived by the
Borrower to the fullest extent permitted by law, to set off and apply in favor
of the Lenders any and all deposits (general or special, time or demand,
provisional or final) at any time held by, and other indebtedness at any time
owing to, such Lender to or for the credit or the account of the Borrower
against any and all Obligations owing to the Lenders, now or hereafter
existing, irrespective of whether or not the Administrative Agent or such
Lender shall have made demand under this Agreement or any Loan Document and
although such Obligations may be contingent or unmatured.  Each Lender agrees promptly to (1) notify
the Borrower and the Administrative Agent after any such set-off and
application made by such Lender; provided, however, that the failure to
give such notice shall not affect the validity of such set-off and application
and (2) pay such amounts that are set-off to the Administrative Agent for
the ratable benefit of the Lenders.

 

10.18       Severability. 
The illegality or unenforceability of any provision of this Agreement or
any other Loan Document or any instrument or agreement required hereunder or
thereunder shall not in any way affect or impair the legality or enforceability
of the remaining provisions hereof or thereof.

 

10.19       No Third Parties Benefited.  This Agreement and the other Loan Documents
are made and entered into for the sole protection and legal benefit of the
Borrower Parties, the Lenders, the Joint Lead Arrangers, and the Agents, and
their permitted successors and assigns,

 

92

 

and no other
Person shall be a direct or indirect legal beneficiary of, or have any direct
or indirect cause of action or claim in connection with, this Agreement or any
of the other Loan Documents.

 

10.20       Time.  Time is of
the essence as to each term or provision of this Agreement and each of the
other Loan Documents.

 

10.21       Reinstatement. 
This Agreement and the security interests created herein shall continue
to be effective or be reinstated, as the case may be, if at any time payment
and performance of the Borrower’s Obligations hereunder, or any part thereof,
is, pursuant to bankruptcy, insolvency or other applicable laws, rescinded or
reduced in amount, or must otherwise be restored or returned by Administrative
Agent or any Lender.  In the event that
any payment or any part thereof is so rescinded, reduced, restored or returned,
such Obligations and the security interests created herein shall continue to be
effective or be reinstated (except to the extent the related collateral has
been sold to a bona fide purchaser for value) and deemed reduced only by such
amount paid and not so rescinded, reduced, restored or returned.

 

10.22       Rights Under Specified Interest Rate Contracts.  Neither
the Loan Documents nor any Specified Interest Rate Contract will create (or be
deemed to create)  in favor of any counterparty that
is a party thereto any rights in connection with the management or release of
any Mortgaged Property or any other collateral for the Obligations or of the
obligations of the Borrower under the Loan Documents (except as expressly
provided in the first sentence of Section 9.2(1) of this
Agreement).

 

 [SIGNATURE PAGES FOLLOWING]

 

93

 

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

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  CV PROPCO,
  LLC, a Nevada limited liability

  company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
  Richard J. Haskins

  
	
   

  	
  Name:

  	
   Richard
  J. Haskins

  
	
   

  	
  Title:

  	
   Secretary

  
					

 

 

	
   

  	
  LENDERS
  AND AGENTS:

  	 

	
   

  	
   

  	 

	
   

  	
  DEUTSCHE
  BANK TRUST COMPANY

  AMERICAS, as Administrative Agent and a

  Lender

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   /s/
  James Rolison

  	 

	
   

  	
  Name:

  	
   James
  Rolison

  	 

	
   

  	
  Title:

  	
  Director

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   /s/
  Linda Wang

  	 

	
   

  	
  Name:

  	
   Linda
  Wang

  	 

	
   

  	
  Title:

  	
   Director

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  JPMORGAN
  CHASE BANK, N.A., as

  Syndication Agent and a Lender

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   /s/
  Donald S. Shokrian

  	 

	
   

  	
  Name:

  	
   Donald
  S. Shokrian

  	 

	
   

  	
  Title:

  	
   Managing
  DirectorExhibit
10.1

Execution
Copy

SECOND
AMENDED AND RESTATED

SENIOR MANAGEMENT AGREEMENT

 

THIS SECOND AMENDED AND RESTATED
SENIOR MANAGEMENT AGREEMENT (this “Agreement”) is made as of January 28,
2008, by and among Solera Holdings, Inc., a Delaware corporation (the “Company”),
Solera, Inc., a Delaware  corporation (“Employer”),
Tony Aquila  (“Executive”), Anthony
Aquila 2007 Annuity Trust dated May 10, 2007 (“Executive Trust”),
Shelly Renee Aquila (“Aquila”) and Shelly Renee Aquila 2007 Annuity
Trust dated May 10, 2007 (“Aquila Trust”).  Certain definitions are set forth in Section 9
of this Agreement.

 

On April 1, 2005, pursuant to the Senior
Management Agreement, dated as of April 1, 2005, by and among Solera
Holdings, LLC, a Delaware limited liability company and predecessor to the
Company (“Solera LLC”), Employer and Executive (the “Original Senior
Management Agreement”), Executive purchased from Solera LLC (i) 4,040,021
of Solera LLC’s Class A Common Units (as defined below) and (ii) 16.625
of Solera LLC’s Class B Preferred Units (as defined below).

 

On April 13, 2006, pursuant to the Amended and
Restated Senior Management Agreement, dated as of April 13, 2006, by and
among Solera LLC, Employer and Executive (as amended, the “Restated Senior
Management Agreement”), (i) the parties thereto amended and restated
in its entirety the Original Senior Management Agreement, (ii) Executive
purchased from Solera LLC 530,551 Class A Common Units and (iii) Executive
purchased from Solera LLC 1,562.318 Class B Preferred Units.  All Class B Preferred Units and Class A
Common Units owned by Executive or acquired by Executive pursuant to the
Original Senior Management Agreement or the Restated Senior Management
Agreement are referred to herein as “Executive Units.”

 

On March 29, 2007, Solera LLC, Employer and
Executive entered into an Amendment No. 1 to Amended and Restated Senior
Management Agreement, pursuant to which the parties to the Restated Senior
Management Agreement amended the Restated Senior Management Agreement.

 

On April 28, 2007, pursuant to a resolution of
the board of managers of Solera LLC, a three-to-one reverse split of the Class A
Common Units of Solera LLC was effected pursuant to which the number of Class A
Common Units held by Executive was divided by three and any resulting
fractional Unit was cancelled.

 

On May 10, 2007, Executive transferred 50,000 Class A
Common Units to each of (i) Executive Trust and (ii) Aquila.  On such date, Aquila transferred 50,000 Class A
Common Units to Aquila Trust.

 

On May 10, 2007, pursuant to a resolution of the
board of managers of Solera LLC, Solera LLC filed a certificate of conversion
(as filed, the “Certificate of Conversion”) with the Secretary of State
of the State of Delaware, pursuant to which Solera LLC was converted from a
limited liability company into a corporation and all outstanding Class A
Common Units and Class B Preferred Units of Solera LLC were converted into
shares (the “Conversion”) of the 

 

1

common stock, par value
$0.01 per share (the “Common Stock”), of the Company as set forth in the
Certificate of Conversion.

 

Immediately following the Conversion, the Investors
owned an aggregate of 41,526,756 shares of Common Stock (such number of shares,
the “Initial Investor Amount”).

 

On May 11, 2007, pursuant to and subject to the
terms of (a) a Restricted Stock Unit Grant Agreement, dated May 11,
2007, between the Company and Executive (the “RSU Agreement”), and (b) the
Company’s 2007 Long-Term Equity Incentive Plan, the Company issued to Executive
150,648 restricted stock units (the “RSUs”).

 

On May 15, 2007, the Company completed an initial
public offering (the “IPO”) of shares of Common Stock.  In connection with the IPO, Executive sold
83,137 shares of Common Stock to the underwriters in the IPO.

 

On October 10, 2007, certain stockholders of the
Company completed a public offering (the “October Offering”) of
shares of Common Stock.  In connection
with the October Offering, Executive sold 169,613 shares of Common Stock
to the underwriters in the October Offering.

 

As a result of the foregoing events, the Company,
Employer, Executive, Executive Trust and Aquila Trust desire to amend and
restate the Restated Senior Management Agreement in its entirety.  Certain provisions of this Agreement are
intended for the benefit of, and will be enforceable by, the Investors (as
defined below).

 

NOW, THEREFORE, in consideration of the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties to the
Restated Senior Management Agreement hereby agree that the Restated Senior
Management Agreement is hereby amended and restated in its entirety as follows
and all parties hereto hereby agree as follows:

 

PROVISIONS
RELATING TO EXECUTIVE SECURITIES

 

1.     Purchase and Sale of Executive Securities.

 

(a)   Pursuant to the Original Senior Management
Agreement, on April 1, 2005, Executive purchased, and Solera LLC sold, (i) 4,040,021
Class A Common Units and (ii) 16.625 Class B Preferred
Units.  On such date, Solera LLC
delivered to Executive the certificates evidencing any Executive Units that
were vested at such time, and Executive delivered to Employer, for the benefit
of Solera LLC, a cashier’s or certified check or wire transfer of immediately
available funds in an aggregate amount equal to $420,627.13 as payment for such
Executive Units.

 

(b)   Pursuant to the Restated Senior Management
Agreement, on April 13, 2006, (i) Solera LLC sold, and the Executive
purchased 530,551 Class A Common Units at a price of $0.10 per unit and (ii) Executive
purchased and Solera LLC sold 1,526.318 Class B Preferred Units at a price
of $1,000.00 per unit.  On such date,
Executive delivered to Solera LLC a cashier’s or certified check or wire
transfer of immediately available funds in an aggregate 

 

2

amount equal to $1,579,372.87 as payment for such
Executive Units.  Following such purchase
of Class A Common Units and Class B Preferred Units, Executive owned
the following Executive Units:  (i) 3,927,679
Class A Common Units, which units are referred to herein as the “Carried
Common Units”; (ii) 642,893 Class A Common Units, which units are
referred to herein as the “Co-Invest Common Units”; and (iii) 1,542.943
Class B Preferred Units.  Solera LLC
delivered to Executive copies of the certificates representing such Executive
Units.  The Co-Invest Common Units,
together with the Class B Preferred Units acquired by Executive pursuant
to the Original Senior Management Agreement and the Restated Senior Management
Agreement, are referred to herein as the “Co-Invest Units.”

 

(c)   On April 28, 2007, pursuant to a
resolution of the board of managers of Solera LLC, a three-to-one reverse split
of the Class A Common Units of Solera LLC was effected pursuant to which
the number of Class A Common Units held by Executive was divided by three
and any resulting fractional Unit was cancelled.

 

(d)   On May 10, 2007, Executive transferred
50,000 Co-Invest Common Units to each of (i) Executive Trust and (ii) Aquila.  On such date, Aquila transferred 50,000
Co-Invest Units to Aquila Trust.  On such
date, Executive Trust, Aquila and Aquila Trust executed joinders to the
Restated Senior Management Agreement.

 

(e)   On May 10, 2007, pursuant to the
Conversion, all of the outstanding units of Solera LLC, including the Executive
Units, were converted into shares of Common Stock.  Immediately following such Conversion, (i) Executive
owned the following:  (A) 1,309,226 shares
of Common Stock, which shares shall be referred to herein as the “Carried
Shares” and (B) 219,396 shares of Common Stock, which shares shall be
referred to herein as the “Executive Co-Invest Shares;” and (ii) each
of Executive Trust and Aquila Trust owned 50,000 shares of Common Stock, which
shares, together with the Executive Co-Invest Shares, shall be referred to
herein as the “Co-Invest Shares.” 
The Carried Shares and Co-Invest Shares, together with any shares of
Common Stock that are issued in respect of RSUs that have vested, shall be
referred to herein, collectively, as “Executive Securities.”  As of May 10, the total number of
Carried Shares plus Co-Invest Shares was equal to 1,628,622.

 

(f)    Immediately following the Conversion, the
Investors owned an aggregate number of shares of Common Stock equal to the
Initial Investor Amount.

 

(g)   On May 11, 2007, pursuant to and subject
to the terms of (a) the RSU Agreement and (b) the Company’s 2007
Long-Term Equity Incentive Plan, the Company issued to Executive the RSUs.

 

(h)   On May 15, 2007, in connection with the
IPO, Executive sold 83,137 Executive Co-Invest Shares to the underwriters in
the IPO.

 

(i)    On October 10, 2007, in connection with
the October Offering, Executive sold 169,613 shares of Common Stock to the
underwriters in the October Offering.

 

(j)    All certificates evidencing the Unvested
Shares (as defined below) shall be held by the Company for the benefit of
Executive and other holder(s) of Unvested Shares; provided, that, upon
written request by the Executive, the Company shall release to Executive 

 

3

and other holder(s) of Vested Shares certificates
evidencing those Vested Shares.  Upon the
occurrence of a Sale of the Company, the Company will return all certificates
in its possession evidencing Unvested Shares to the record holders thereof.

 

(k)   Executive represents and warrants to the
Company that:

 

(i)            This
Agreement constitutes the legal, valid and binding obligation of Executive,
enforceable in accordance with its terms, and the execution, delivery and
performance of this Agreement by Executive does not and will not conflict with,
violate or cause a breach of any agreement, contract or instrument to which
Executive is a party or any judgment, order or decree to which Executive is
subject.

 

(ii)           Except
for (A) the Employment Agreement, dated August 16, 2001 between
Executive and Mitchell International, as amended by the Amendment to Employment
Agreement dated April 22, 2003 (the “Mitchell Employment Agreement”),
(B) the Non-Solicitation and Non-Competition Agreement, dated September 18,
2001, between Executive and Mitchell International, Inc. (together with
the Mitchell Employment Agreement, the “Mitchell Agreements”), and (C) this
Agreement, Executive is neither party to, nor bound by, any other employment
agreement, consulting agreement, noncompete agreement, non-solicitation
agreement or confidentiality agreement.

 

(l)    Executive acknowledges and agrees that no
provision contained in this Agreement shall entitle Executive to remain in the
employment of the Company, Employer or their respective Subsidiaries or affect
the right of the Company, Employer or their respective Subsidiaries to
terminate Executive’s employment at any time for any reason.

 

(m)  In accordance with the terms of each of the
Original Senior Management Agreement and the Restated Senior Management
Agreement, Executive has executed in blank ten security transfer powers (the “Security
Powers”) with respect to the Executive Units acquired pursuant to such
agreement and has delivered such Security Powers to the Company.  Concurrently with the execution of this
Agreement, Executive shall execute in blank ten Security Powers in the form of Exhibit A
attached hereto with respect to the Unvested Shares and shall deliver such
Security Powers to the Company.  The
Security Powers shall authorize the Company to assign, transfer and deliver the
Unvested Shares to the appropriate acquiror thereof pursuant to Section 3
below and under no other circumstances.

 

(n)   In accordance with the terms of each of the
Original Senior Management Agreement and the Restated Senior Management
Agreement, if Executive was married at the time of the execution of such
agreement, Executive’s spouse executed a Spousal Consent with respect to the
Executive Units acquired pursuant to such agreement.  Concurrently with the execution of this
Agreement, if Executive is lawfully married, Executive’s spouse shall execute
the Consent in the form of Exhibit B attached hereto.

 

(o)   On April 1, 2005, Executive became a
party to the Registration Agreement in the capacity of an Executive.  On May 10, 2007, each of Executive
Trust, Aquila and Aquila Trust became a party to the Registration Agreement.

 

 

4

2.     Vesting of Carried Shares and RSUs.

 

(a)   The Co-Invest Shares are fully vested.  The Carried Shares shall be subject to
vesting in the manner specified in this Section 2.  As of the date hereof, 1,047,380 Carried
Shares have vested.

 

(b)   Except as otherwise provided in this Section 2,
beginning March 31, 2008, an additional 5% (that is, 65,461 shares) of the
Carried Shares shall become vested on March 31, June 30, September 30
and December 31 of each year, if as of each such date Executive is
employed by the Company or any of its Subsidiaries, until all Carried Shares
have become vested.

 

(c)   Upon the occurrence of a Sale of the Company,
all Carried Shares and RSUs which have not yet become vested shall become
vested as of the date of consummation of the Sale of the Company, if, as of
such date, Executive has been continuously employed by the Company, Employer or
any of their Subsidiaries from the date of this Agreement through and including
such date.

 

(d)   In the event of a Public Sale of shares of
Common Stock by the Investors after the date hereof, if, as of the date of the
consummation of such Public Sale, the Vested Ratio (prior to giving effect to
any vesting on such date pursuant to this Section 2(d)) is less
than the Cumulative Ratio (after giving effect to such Public Sale), then a
number of Unvested Shares (as defined below) shall become vested in connection
with such Public Sale such that the Vested Ratio (after giving effect to any
vesting on such date pursuant to this Section 2(d)) equals the
Cumulative Ratio (after giving effect to such Public Sale) on such date, if, as
of such date, Executive has been continuously employed by the Company, Employer
or any of their Subsidiaries from the date of this Agreement through and including
such date.  Notwithstanding, and in
addition to, any vesting pursuant to this Section 2(d), the Carried
Shares shall continue to vest as set forth in Section 2(b).

 

(e)   If (i) requested by
Executive in a written notice to the Company in connection with a Sale of the
Company, and (ii) Executive is a “disqualified individual” (within the
meaning of Section 280G(c) of the Internal Revenue Code, as amended
(the “Code”)) entitled to receive a “parachute payment” (within the
meaning of Code Section 280G(b)) in connection with such Sale of the
Company, and (iii) Executive has waived his 280G Payment (as defined
below) subject to the Stockholder Vote (as defined below), the Company shall
use commercially reasonable efforts prior to the closing of such Sale of the
Company to hold a vote of the Company’s stockholders (the “Stockholder Vote”)
seeking approval of any such parachute payment to the extent such parachute
payment exceeds 2.999 times Executive’s “base amount” (within the meaning of
Code Section 280G(b)(3)) (the “280G Payment”).

 

(f)    Carried Shares that have become vested (“Vested
Carried Shares”), shares of Common Stock issued in respect of RSUs that
have vested and the Co-Invest Shares are collectively referred to herein as “Vested
Shares.”  All Carried Shares that
have not vested are referred to herein as “Unvested Shares.”

 

 

5

(g)   As of the date hereof, notwithstanding
anything to the contrary set forth in the RSU Agreement, 120,518 of the RSUs
have vested.  In the event of a Public
Sale of shares of Common Stock by the Investors after the date hereof, if, as
of the date of the consummation of such Public Sale, the RSU Vested Ratio
(prior to giving effect to any vesting on such date pursuant to this Section 2(g))
is less than the Cumulative Ratio (after giving effect to such Public Sale),
then a number of unvested RSUs shall become vested in connection with such
Public Sale such that the RSU Vested Ratio (after giving effect to any vesting
on such date pursuant to this Section 2(g)) equals the Cumulative
Ratio (after giving effect to such Public Sale) on such date, if, as of such
date, Executive has been continuously employed by the Company, Employer or any
of their Subsidiaries from the date of this Agreement through and including
such date.  Notwithstanding, and in
addition to, any vesting pursuant to this Section 2(g), the RSUs
shall continue to vest as set forth in the RSU Agreement.

 

3.     Repurchase Option.

 

(a)   In the event of a Separation, the Unvested Shares
(whether held by Executive or one or more of Executive’s transferees, other
than the Company and the Investors) will be subject to repurchase, in each case
by the Company and the Investors pursuant to the terms and conditions set forth
in this Section 3 (the “Repurchase Option”).  The Company may assign its repurchase rights
set forth in this Section 3 to any Person.

 

(b)   In the event of a Separation, the purchase
price for each Unvested Share will be the lesser of (A) Executive’s
Original Cost for such share and (B) the Fair Market Value of such share
as of the delivery date of the Repurchase Notice or Supplemental Repurchase
Notice, as the case may be, in either case first delivered pursuant to Section 3(c).

 

(c)   In the event of a Separation, the Company
(with the approval of the Board) may elect to purchase all or any portion of
the Unvested Shares pursuant to this Section 3 by delivering
written notice (the “Repurchase Notice”) to the holder or holders of
such securities within six months and 10 days after the Separation.  The Repurchase Notice will set forth the
number of Unvested Shares to be acquired from each holder, the aggregate
consideration to be paid for such shares and the time and place for the closing
of the transaction.  Unvested Shares to
be repurchased by the Company shall first be satisfied to the extent possible
from the Unvested Shares held by Executive at the time of delivery of the
Repurchase Notice.  If the number of
Unvested Shares to be repurchased by the Company then held by Executive is less
than the total number of Unvested Shares that the Company has elected to
purchase, the Company shall purchase the remaining Unvested Shares elected to
be purchased from the other holder(s) of Unvested Shares under this
Agreement (i.e., Executive’s Permitted Transferees), pro rata according to the
number of Unvested Shares held by such other holder(s) at the time of
delivery of such Repurchase Notice (determined as nearly as practicable to the
nearest share).

 

(d)   If for any reason the Company does not elect
to purchase all of the Unvested Shares pursuant to the Repurchase Option, the
Investors shall be entitled to exercise the Repurchase Option for all or any
portion of the Unvested Shares that the Company has not elected to purchase
(the “Available Securities”).  As
soon as practicable after the Company has determined that there will be
Available Securities, but in any event within five months after the Separation,
the Company shall give written notice (the “Option Notice”) to the
Investors setting 

 

6

forth the number of Available Securities and the
purchase price for such Available Securities. 
The Investors may elect to purchase any or all of the Available
Securities by giving written notice to the Company within six months and 10
days after the Separation.  If the
Investors elect to purchase an aggregate number of Available Securities that is
greater than the number of Available Securities, the Available Securities shall
be allocated among the Investors based upon the number of shares of Common
Stock owned by each Investor.  As soon as
practicable, and in any event within ten days, after the expiration of the
six-month and ten-day period set forth above, the Company shall notify each
holder of Unvested Shares as to the number of Unvested Shares being purchased
from such holder by the Investors (the “Supplemental Repurchase Notice”).  At the time the Company delivers the
Supplemental Repurchase Notice to the holder(s) of Unvested Shares, the
Company shall also deliver written notice to each Investor setting forth the
number of shares such Investor is entitled to purchase, the aggregate purchase
price and the time and place of the closing of the transaction.

 

(e)   The closing of the purchase of the Unvested
Shares pursuant to the Repurchase Option shall take place on the date
designated by the Company in the Repurchase Notice or Supplemental Repurchase
Notice, which date shall not be more than one month nor less than five days
after the delivery of the later of either such notice to be delivered.  The Company will pay for the Unvested Shares
to be purchased by it pursuant to the Repurchase Option by first offsetting
amounts outstanding under any bona fide debts owed by Executive to the Company,
and will pay the remainder of the purchase price by, at its option, (A) a
check or wire transfer of funds, (B) the issuance of a subordinated
promissory note of the Company payable in full in one lump sum on the third
anniversary of the date of issuance and bearing interest at a rate equal to
such rate as may be determined by the Board (provided that such rate may not be
less than the prime rate (as published in The Wall Street Journal from
time to time)), which interest shall be payable in cash on a quarterly basis,
or (C) any combination of (A) and (B) as the Board may elect in
its discretion; provided that, to the extent that the Company has readily
available cash resources in excess of its working capital and other reasonable
cash needs and without imposing any obligation on the Company to raise
financing to fund the repurchases or to materially impair its financial
liquidity or condition, the Company shall use reasonable efforts to pay the
purchase price for such Unvested Shares pursuant to the foregoing clause
(A).  Each Investor will pay for the
Unvested Shares purchased by it by a check or wire transfer of funds.  The Company and the Investors will be
entitled to receive customary representations and warranties from the sellers
regarding such sale.

 

(f)    Notwithstanding anything to the contrary
contained in this Agreement, all repurchases of Unvested Shares by the Company
pursuant to the Repurchase Option shall be subject to applicable restrictions
contained in the Delaware General Corporation Law or such other governing
corporate law, and in the Company’s and its Subsidiaries’ debt and equity
financing agreements, provided that with respect to any such equity financing
agreements in effect on the date hereof, only such restrictions as are set
forth in such agreements as in effect on the date hereof shall apply for
purposes of this Section 3.2(f). 
If any such restrictions prohibit (i) the repurchase of Unvested
Shares hereunder which the Company is otherwise entitled or required to make or
(ii) dividends or other transfers of funds from one or more Subsidiaries
to the Company to enable such repurchases, then the Company may make such
repurchases as soon as it is permitted to make repurchases or receive funds
from Subsidiaries under such restrictions but in no event later than 12 months
after the date of the Repurchase Notice, and for any such 

 

7

repurchase that is to be made at Fair Market Value,
Fair Market Value shall be determined as of the date such restrictions lapse.

 

(g)   Notwithstanding anything to the contrary
contained in this Agreement, if the Fair Market Value of Unvested Shares is
finally determined to be an amount at least 20% greater than the per share
repurchase price for such Unvested Share in the Repurchase Notice or in the
Supplemental Repurchase Notice, each of the Company and the Investors shall
have the right to revoke its exercise of the Repurchase Option for all or any
portion of the Unvested Shares elected to be repurchased by it by delivering
notice of such revocation in writing to the holders of Unvested Shares during
the thirty-day period beginning on the date that the Company and/or the
Investors are given written notice that the Fair Market Value of a share of
Unvested Shares was finally determined to be an amount at least 20% greater
than the per share repurchase price for Unvested Shares set forth in the
Repurchase Notice or in the Supplemental Repurchase Notice.

 

(h)   The provisions of this Section 3
will terminate upon the consummation of a Sale of the Company.

 

4.     Restrictions on Transfer of Executive Securities.

 

(a)   Transfer of Executive Securities.  The holders of Executive Securities shall not
Transfer any interest in any Executive Securities, except pursuant to (i) the
provisions of Section 3 hereof or (ii) the provisions of Section 4(b) below.

 

(b)   Certain Permitted Transfers.  The restrictions in this Section 4
will not apply with respect to any Transfer of Executive Securities made (i) pursuant
to applicable laws of descent and distribution or to such Person’s legal
guardian in the case of any mental incapacity or among such Person’s Family
Group, or (ii) subject to the restrictions on transfer set forth in the
Registration Agreement (including, without limitation, in Section 3
thereof) or any agreement entered into pursuant thereto, of shares of Common
Stock that are Vested Shares, but in the case of this clause (ii) only
an amount of shares of Common Stock that are Vested Shares equal to the product
of (A) the Total Share Number and (B) the Cumulative Ratio (as of the
date of such Transfer pursuant to this clause (ii), after giving effect
to any Public Sale of Common Stock by the Investors on such date), less
the sum of (X) the aggregate number of shares of Executive Securities transferred
by Executive in Public Sales prior to the date hereof and (Y) as of the
date of such transfer, the aggregate number of shares of Executive Securities
previously transferred by Executive, Executive Trust, Aquila, Aquila Trust and
their Permitted Transferees after the date hereof pursuant to this clause (ii);
provided that any in-kind distributions of shares of Common Stock by the
Investors to their limited partners shall be deemed to be a Public Sale for
purposes of this Section 4(b)(ii); provided further that the
restrictions contained in this Section 4 will continue to be
applicable to the Executive Securities after any Transfer of the type referred
to in clause (i) above and the transferees of such Executive
Securities must agree in writing to be bound by the provisions of this
Agreement.  Any transferee of Executive
Securities pursuant to a Transfer in accordance with the provisions of clause
(i) of this Section 4(b) is herein referred to as a “Permitted
Transferee.”  Upon the Transfer of
Executive Securities pursuant to this Section 4(b), the
transferring holder of Executive Securities will deliver a written notice (a “Transfer

 

8

Notice”) to the Company. 
In the case of a Transfer pursuant to clause (i) hereof, the
Transfer Notice will disclose in reasonable detail the identity of the
Permitted Transferee(s).

 

(c)   Termination of Restrictions.  The restrictions set forth in this Section 4
will continue with respect to each share of Executive Securities until the
earlier of (i) the date on which such share of Executive Securities has
been transferred in a Public Sale permitted by this Section 4, or (ii) the
consummation of a Sale of the Company.

 

5.     Additional Restrictions on Transfer of Executive Securities.

 

(a)   Legend.  The certificates representing the Executive
Securities will bear a legend in substantially the following form:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE
ORIGINALLY ISSUED AS OF MAY 10, 2007, HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE SOLD
OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
ACT OR AN EXEMPTION FROM REGISTRATION THEREUNDER.  THE SECURITIES REPRESENTED BY THIS
CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER, CERTAIN
REPURCHASE OPTIONS AND CERTAIN OTHER AGREEMENTS SET FORTH IN A SECOND AMENDED
AND RESTATED SENIOR MANAGEMENT AGREEMENT AMONG THE COMPANY AND AN EXECUTIVE OF
THE COMPANY AND OTHER PARTIES, DATED AS OF JANUARY 28, 2008, AS AMENDED.  A COPY OF SUCH AGREEMENT MAY BE OBTAINED
BY THE HOLDER HEREOF AT THE COMPANY’S PRINCIPAL PLACE OF BUSINESS WITHOUT
CHARGE.”

 

(b)   Opinion of Counsel.  No holder of Executive Securities may
Transfer any Executive Securities (except pursuant to Section 3 or 4(b) of
this Agreement or an effective registration statement under the Securities Act)
without first delivering to the Company a written notice at least 10 days prior
to such transfer describing in reasonable detail the proposed Transfer, and, if
requested by the Company prior to such Transfer, an opinion of counsel
(reasonably acceptable in form and substance to the Company) that neither
registration nor qualification under the Securities Act and applicable state
securities laws is required in connection with such transfer.  In addition, if the holder of the Executive
Securities delivers to the Company an opinion of counsel that no subsequent
Transfer of such Executive Securities shall require registration under the
Securities Act, the Company shall promptly upon such contemplated Transfer
deliver new certificates for such Executive Securities that do not bear the
Securities Act portion of the legend set forth in Section 5(a).  If the Company is not required to deliver new
certificates for such Executive Securities not bearing such legend, the holder
thereof shall not Transfer the same until the prospective transferee has
confirmed to the Company in writing its agreement to be bound by the conditions
contained in this Section 5.

 

9

PROVISIONS
RELATING TO EMPLOYMENT

 

6.     Employment. Employer
agrees to employ Executive and Executive accepts such employment for the period
beginning as of the date hereof and ending upon his separation pursuant to Section 6(c) hereof
(the “Employment Period”).

 

(a)   Position and Duties.

 

(i)            During
the Employment Period, Executive shall serve as the President and Chief
Executive Officer of Employer and shall have the normal duties,
responsibilities and authority implied by such position, including, without limitation,
the responsibilities associated with all aspects of the daily operations of
Employer and the identification, negotiation, completion and integration of any
acquisitions made by the Company, Employer or their Subsidiaries, subject to
the power of the Board to expand or limit such duties, responsibilities and
authority and to override actions of the President and Chief Executive Officer.

 

(ii)           Executive
shall report to the Board, and Executive shall devote his reasonable efforts
and his full business time and attention to the business and affairs of the
Company, Employer and their Subsidiaries; provided that in no event
shall Executive be restricted from serving on the boards of directors of other
companies (other than any companies that are in any business that is
competitive with any business of the Company or its Subsidiaries) or purely
philanthropic organizations or participating in philanthropic activities
associated with such organizations, but, in each case, only to the extent that
such service or participation does not interfere with Executive’s employment or
duties hereunder.

 

(b)   Salary, Bonus and Benefits.  During the Employment Period, Employer will
pay Executive a base salary of $675,000 per annum (as adjusted, the “Annual
Base Salary”).  For the fiscal year
ending June 30, 2008 and for each fiscal year thereafter, in each case,
during the Employment Period, Executive shall be eligible for an Annual Bonus
(an “Annual Bonus”) in an amount up to 100% of the Annual Base Salary
(or such higher amount for any fiscal year as may be determined by the
Company’s compensation committee from time to time for such year) then in
effect based upon the achievement by the Company, Employer and their
Subsidiaries of financial and other objectives set by the Board.  An Annual Bonus, if any, will be paid to
Executive by Employer 120 days after the end of the fiscal year to which such
Annual Bonus relates.

 

(c)   Separation.  The Employment Period will continue until (i) Executive’s
resignation, Disability or death, or (ii) the Board decides to terminate
Executive’s employment with or without Cause. 
If Executive’s employment is terminated by Employer without Cause or by
Executive with Good Reason, then during the 18-month period commencing on the
date of termination subject to extension pursuant to the following sentence
(the “Severance Period”), Employer shall pay to Executive an aggregate
amount equal to 150% of his Annual Base Salary plus 75% of any Annual Bonus
paid in respect of the fiscal year preceding the date of termination, payable
in equal installments on the Employer’s regular salary payment dates (the “Wage
Severance”), and Executive shall continue to participate in employee
benefit programs for 

 

10

senior executive employees (other than bonus and
incentive compensation plans) to the extent permitted under the terms of such
programs and under applicable law (collectively, the “Severance Payments”).  In addition, Employer shall have the option,
by delivering written notice to the Executive within 12 months after the
Separation to extend the Severance Period for an additional six month or
12-month period during which time the Company shall continue to make Severance
Payments to Executive at the same annual rate (pro rated as applicable).  Notwithstanding the foregoing, (A) Executive
shall not be entitled to receive any payments pursuant to this Section 6(c) unless
Executive has executed and delivered to Employer a general release in form and
substance reasonably satisfactory to Employer and which shall in no event
contain restrictions on Executive’s future employment broader than those
contained in this Agreement and (B) Executive shall be entitled to receive
such payments only so long as Executive has not breached the provisions of Sections
7 or 8 hereof.

 

7.     Confidential Information.

 

(a)   Obligation to Maintain Confidentiality.  Executive acknowledges that the information,
observations and data (including trade secrets) of a confidential, proprietary
or secret nature obtained by him during the course of his performance under
this Agreement concerning the business or affairs of the Company, Employer and
their respective Subsidiaries and Affiliates (“Confidential Information”)
are the property of the Company, Employer or such Subsidiaries and Affiliates,
including information concerning acquisition opportunities in or reasonably
related to the Company’s and Employer’s business or industry of which Executive
becomes aware during the Employment Period. Therefore, Executive agrees that he
will not disclose to any unauthorized Person or use for his own account any
Confidential Information without the Board’s written consent, unless and to the
extent that the Confidential Information, (i) becomes generally known to
and available for use by the public other than as a result of Executive’s acts
or omissions to act, (ii) was known to Executive prior to Executive’s
employment with Employer, the Company or any of their Subsidiaries and
Affiliates, or (iii) is required to be disclosed pursuant to any
applicable law or court order.  Executive
shall deliver to the Company at a Separation, or at any other time the Company
may request, all memoranda, notes, plans, records, reports, computer tapes,
printouts and software and other documents and data (and copies thereof)
relating to the Confidential Information, Work Product (as defined below) or
the business of the Company, Employer and their respective Subsidiaries and
Affiliates (including, without limitation, all acquisition prospects, lists and
contact information) which he may then possess or have under his control.

 

(b)   Ownership of Property.  Executive acknowledges that all discoveries,
concepts, ideas, inventions, innovations, improvements, developments, methods,
processes, programs, designs, analyses, drawings, reports, patent applications,
copyrightable work and mask work (whether or not including any confidential
information) and all registrations or applications related thereto, all other
proprietary information and all similar or related information (whether or not
patentable) that relate to the Company’s, Employer’s or any of their respective
Subsidiaries’ or Affiliates’ actual or anticipated business, research and
development, or existing or future products or services and that are conceived,
developed, contributed to, made, or reduced to practice by Executive (either
solely or jointly with others) while employed by the Company, Employer or any
of their respective Subsidiaries or Affiliates (including any of the foregoing
that constitutes any proprietary information or records) (“Work Product”)
belong to the 

 

11

Company, Employer or such Subsidiary or Affiliate and
Executive hereby assigns, and agrees to assign, all of the above Work Product
to the Company, Employer or to such Subsidiary or Affiliate.  Any copyrightable work prepared in whole or
in part by Executive in the course of his work for any of the foregoing
entities shall be deemed a “work made for hire” under the copyright laws, and
the Company, Employer or such Subsidiary or Affiliate shall own all rights
therein.  To the extent that any such
copyrightable work is not a “work made for hire,” Executive hereby assigns and
agrees to assign to the Company, Employer or such Subsidiary or Affiliate all
right, title, and interest, including without limitation, copyright in and to
such copyrightable work.  Executive shall
promptly disclose such Work Product and copyrightable work to the Board and
perform all actions reasonably requested by the Board (whether during or after
the Employment Period) to establish and confirm the Company’s, Employer’s or
such Subsidiary’s or Affiliate’s ownership (including, without limitation,
assignments, consents, powers of attorney, and other instruments).  Executive understands, however, that there is
no obligation being imposed on him to assign to the Company or any Subsidiary
or Affiliate, any invention falling within the definition of Work Product for
which no equipment, supplies, facility, or trade secret information of the
Company or any of its Subsidiaries or Affiliates was used and that was
developed entirely on his own time, unless: 
(i) such Work Product relates (A) to the Company’s, or its
Subsidiaries’ or Affiliates’ businesses or (B) to their actual or
demonstrably anticipated research or 
development, or (ii) the Work Product results from any work
performed by him for them under this Agreement. 
Executive has identified on the signature page to this Agreement
all Work Product that is or was owned by him or was written, discovered, made,
conceived or first reduced to practice by him alone or jointly with another
person prior to his employment under this Agreement.  If no such Work Product is listed, Executive
represents to the Company that he does not now nor has he ever owned, nor has
he made, any such Work Product.

 

(c)   Third Party Information. Executive
understands that the Company, Employer and their respective Subsidiaries and
Affiliates will receive from third parties confidential or proprietary
information (“Third Party Information”) subject to a duty on the
Company’s, Employer’s and their respective Subsidiaries and Affiliates’ part to
maintain the confidentiality of such information and to use it only for certain
limited purposes.  During the Employment
Period and thereafter, and without in any way limiting the provisions of Section 7(a) above,
Executive will hold Third Party Information in the strictest confidence and
will not disclose to anyone (other than personnel and consultants of the
Company, Employer or their respective Subsidiaries and Affiliates who need to
know such information in connection with their work for the Company, Employer
or their respective Subsidiaries and Affiliates) or use, except in connection
with his work for the Company, Employer or their respective Subsidiaries and
Affiliates, Third Party Information unless expressly authorized by a member of
the Board in writing.

 

(d)   Use of Information of Prior Employers.  During the Employment Period, Executive will
not improperly use or disclose any confidential information or trade secrets,
if any, of any former employers or any other Person to whom Executive has an
obligation of confidentiality, and will not bring onto the premises of the
Company, Employer or any of their respective Subsidiaries or Affiliates any
unpublished documents or any property belonging to any former employer or any
other Person to whom Executive has an obligation of confidentiality unless
consented to in writing by the former employer or Person.  Executive will use in the performance of his
duties only information which is (i) generally known and used by persons
with training and experience comparable to Executive’s and which is (x) common
knowledge in 

 

12

the industry or (y) is otherwise legally in the
public domain, (ii) is otherwise provided or developed by the Company,
Employer or any of their respective Subsidiaries or Affiliates or (iii) in
the case of materials, property or information belonging to any former employer
or other Person to whom Executive has an obligation of confidentiality,
approved for such use in writing by such former employer or Person.

 

8.     Restrictive Covenants.  Executive acknowledges that in the course of
his employment with Employer he will become familiar with the Company’s,
Employer’s and their respective Subsidiaries’ trade secrets and with other
confidential information concerning the Company, Employer and such Subsidiaries
and that his services will be of special, unique and extraordinary value to the
Company, Employer and such Subsidiaries. 
Therefore, Executive agrees that:

 

(a)   Nonsolicitation.  During the Employment Period and (x) during
the Severance Period if the Employment Period is terminated by the Company or
Employer without Cause or by Executive with Good Reason, or (y) for a
period of two years thereafter if the Employment Period is terminated by
Executive, the Company or Employer for any other reason, Executive shall not
directly or indirectly through another entity (i) induce or attempt to
induce any employee of the Company, Employer or their respective Subsidiaries
to leave the employ of the Company, Employer or such Subsidiary, or in any way
interfere with the relationship between the Company, Employer and any of their
respective Subsidiaries and any employee thereof (which restriction shall not
preclude placing advertisements in trade publications or similar general
solicitations for employment, so long as such advertisements or solicitations do
not target any employee of the Company, Employer or their respective
Subsidiaries), (ii) hire any person who was an employee of the Company,
Employer or any of their respective Subsidiaries within 180 days after such
person ceased to be an employee of the Company, Employer or any of their
respective Subsidiaries, (iii) induce or attempt to induce any customer,
supplier, licensee or other business relation of the Company, Employer or any
of their respective Subsidiaries to cease doing business with the Company,
Employer or such Subsidiary or in any way interfere with the relationship
between any such customer, supplier, licensee or business relation and the
Company, Employer and any Subsidiary, in each case, if any such inducement,
attempted inducement or interference would involve, use or rely upon any of the
Company’s, Employer’s or any of their respective Subsidiaries’ trade secrets or
other confidential information or (iv) directly or indirectly acquire or
attempt to acquire an interest in any business relating to the business of the
Company, Employer or any of their respective Subsidiaries and with which the
Company, Employer and any of their respective Subsidiaries has engaged in
discussions regarding the acquisition of an interest in such business or has
requested and received information relating to the acquisition of such business
by the Company, Employer or any of their respective Subsidiaries in the two
year period immediately preceding a Separation.

 

(b)   Compliance with Prior Agreements.  During the Employment Period, Executive
agrees that he will comply with, and will take reasonable actions that are
necessary or desirable in order to comply with, his obligations under the
Mitchell Agreements.  Executive acknowledges
that the Company and Employer and GTCR have instructed Executive to do the
same.

 

 

13

(c)   Enforcement.  If, at the time of enforcement of Section 7
or this Section 8, a court holds that the restrictions stated
herein are unreasonable under circumstances then existing, the parties hereto
agree that the maximum duration, scope or geographical area reasonable under
such circumstances shall be substituted for the stated period, scope or area
and that the court shall be allowed to revise the restrictions contained herein
to cover the maximum duration, scope and area permitted by law which shall in
no circumstances be broader in duration, scope or area than those restrictions
provided for herein.  Because Executive’s
services are unique and because Executive has access to confidential
information, the parties hereto agree that money damages would be an inadequate
remedy for any breach of this Agreement. 
Therefore, in the event a breach or threatened breach of this Agreement,
the Company, Employer, their respective Subsidiaries or their successors or
assigns may, in addition to other rights and remedies existing in their favor,
apply to any court of competent jurisdiction for specific performance and/or
injunctive or other relief in order to enforce, or prevent any violations of,
the provisions hereof (without posting a bond or other security).

 

(d)   Additional Acknowledgments.  Executive acknowledges that the provisions of
this Section 8 are in consideration of:  (i) employment with the Employer, (ii) the
issuance of the Executive Securities by the Company and (iii) additional
good and valuable consideration as set forth in this Agreement.  In addition, Executive agrees and
acknowledges that the restrictions contained in Section 7 and this Section 8
do not preclude Executive from earning a livelihood, nor do they unreasonably
impose limitations on Executive’s ability to earn a living.  In addition, Executive acknowledges (i) that
the business of the Company, Employer and their respective Subsidiaries will be
conducted throughout the United States and other jurisdictions where the
Company, Employer or their respective Subsidiaries conduct business during the
Employment Period, (ii) notwithstanding the state of organization or
principal office of the Company, Employer or any of their respective
Subsidiaries, or any of their respective executives or employees (including the
Executive), it is expected that the Company and Employer will have business
activities and have valuable business relationships within its industry
throughout the United States and other jurisdictions where the Company,
Employer or their respective Subsidiaries conduct business during the
Employment Period, and (iii) as part of his responsibilities, Executive
will be traveling throughout the United States and other jurisdictions where
the Company, Employer or their respective Subsidiaries conduct business during
the Employment Period in furtherance of Employer’s business and its
relationships.  Executive agrees and
acknowledges that the potential harm to the Company and Employer of the
non-enforcement of Section 7 and this Section 8
outweighs any potential harm to Executive of its enforcement by injunction or
otherwise.  Executive acknowledges that
he has carefully read this Agreement and has given careful consideration to the
restraints imposed upon Executive by this Agreement, and is in full accord as
to their necessity for the reasonable and proper protection of confidential and
proprietary information of the Company and Employer now existing or to be
developed in the future.  Executive
expressly acknowledges and agrees that each and every restraint imposed by this
Agreement is reasonable with respect to subject matter, time period and
geographical area.

 

14

GENERAL
PROVISIONS

 

9.     Definitions.

 

“Affiliate” means, (i) with respect to any
Person, any Person that controls, is controlled by or is under common control
with such Person or an Affiliate of such Person, and (ii) with respect to
any Investor, any general or limited partner of such Investor, any employee or
owner of any such partner, or any other Person controlling, controlled by or
under common control with such Investor; it being understood and agreed that
GTCR I and its Affiliates shall for all purposes hereunder shall be Affiliates
of GTCR II.

 

“Board” means the Company’s board of directors.

 

“Cause” means (i) the conviction or plea
of no contest for or indictment on a felony or a crime involving moral
turpitude or the commission of any other act or omission involving dishonesty
or fraud, which involves a material matter, with respect to the Company,
Employer or any of their respective Subsidiaries or any of their customers or
suppliers, (ii) substantial and repeated failure to perform duties of the
office held by Executive as reasonably directed by the Board, (iii) gross
negligence or willful misconduct with respect to the Company, Employer or any
of their respective Subsidiaries that is or could reasonably be expected to be
harmful to the Company, Employer or any of their respective Subsidiaries in any
material respect, (iv) conduct tending to bring the Company, Employer or
any of their respective Subsidiaries into substantial public disgrace or
disrepute, and (v) any breach by Executive of Sections 7 or 8
of this Agreement.  In the case of a
termination for Cause pursuant to clause (ii) above, Employer agrees that
Executive shall have the opportunity to address the Board before such
termination for Cause becomes effective.

 

“Class A Common Units” means the Class A
Common Units of Solera LLC having the rights and obligations set forth in the
LLC Agreement.

 

“Class B Preferred Units” means the Class B
Preferred Units of Solera LLC having the rights and obligations set forth in
the LLC Agreement.

 

“Cumulative Ratio”
means, as of a given date, the quotient of (a) the aggregate number of
shares of Common Stock sold by the Investors in Public Sales between May 10,
2007 and such date (including any Public Sales on such date), divided by (b) the
Initial Investor Amount.

 

“Disability” means the disability of Executive caused
by any physical or mental injury, illness or incapacity as a result of which
Executive is or will be unable to effectively perform the essential functions
of Executive’s duties for a continuous period of more than 60 days or for 90
days (whether or not continuous) within a 180-day period, as determined by the
Board in good faith.

 

“Executive Securities” will continue to be
Executive Securities in the hands of any holder other than Executive (except
for the Company and the Investors and except for transferees in a Public Sale),
and except as otherwise provided herein, each such other holder of Executive
Securities will succeed to all rights and obligations attributable to Executive
as a 

 

15

holder of Executive
Securities hereunder.  Executive
Securities will also include equity of the Company issued with respect to
Executive Securities (i) by way of a stock split, stock dividend, conversion,
or other recapitalization, or (ii) by way of reorganization or
recapitalization of the Company. 
Notwithstanding the foregoing, all Unvested Shares shall remain Unvested
Shares after any Transfer thereof.

 

“Fair Market Value” of each share of Executive
Securities means the average of the closing prices of the sales of such
Executive Securities on all securities exchanges on which such Executive
Securities may at the time be listed, or, if there have been no sales on any
such exchange on any day, the average of the highest bid and lowest asked
prices on all such exchanges at the end of such day, or, if on any day such
Executive Securities are not so listed, the average of the representative bid
and asked prices quoted in the NASDAQ System as of 4:00 P.M., New York
time, or, if on any day such Executive Securities are not quoted in the NASDAQ
System, the average of the highest bid and lowest asked prices on such day in
the domestic over-the-counter market as reported by the National Quotation
Bureau Incorporated, or any similar successor organization, in each such case
averaged over a period of 21 days consisting of the day as of which the Fair
Market Value is being determined and the 20 consecutive business days prior to
such day.  If at any time such Executive
Securities are not listed on any securities exchange or quoted in the NASDAQ
System or the over-the-counter market, the Fair Market Value will be the fair
value of such Executive Securities as determined in good faith by the Board.  If Executive reasonably disagrees with such
determination, Executive shall deliver to the Board a written notice of
objection within ten days after delivery of the Repurchase Notice (or if no
Repurchase Notice is delivered, then within ten days after delivery of the Supplemental
Repurchase Notice).  Upon receipt of
Executive’s written notice of objection, the Board and Executive will negotiate
in good faith to agree on such Fair Market Value.  If such agreement is not reached within 30
days after the delivery of the Repurchase Notice (or if no Repurchase Notice is
delivered, then within 30 days after the delivery of the Supplemental
Repurchase Notice), Fair Market Value shall be determined by an appraiser
jointly selected by the Board and Executive, which appraiser shall submit to
the Board and Executive a report within 30 days of its engagement setting forth
such determination.  If the parties are
unable to agree on an appraiser within 45 days after delivery of the Repurchase
Notice or the Supplemental Repurchase Notice, within seven days, each party
shall submit the names of four nationally recognized firms that are engaged in
the business of valuing non-public securities, and each party shall be entitled
to strike two names from the other party’s list of firms, and the appraiser
shall be selected by lot from the remaining four appraisal firms.  The expenses of such appraiser shall be borne
by Executive unless the appraiser’s valuation is more than 10% greater than the
amount determined by the Board, in which case the expenses of the appraiser
shall be borne by the Company.  In making
such appraisal, the appraiser shall determine the fair value of the Company as
a whole without discount for either lack of control or contractual restrictions
on transfer applicable to the Executive Securities.  The determination of such appraiser as to
Fair Market Value shall be final and binding upon all parties.

 

“Family Group” means a Person’s spouse,
brothers or sisters, antecedents, descendants (whether natural or adopted) and
the brothers or sisters, antecedents and descendants (whether natural or
adopted) of such Person’s spouse, and any trust, family limited partnership,
limited liability company or other entity wholly owned, directly or indirectly,
by such Person or such Person’s spouse, brothers or sisters, antecedents and/or
descendants or the brothers or 

 

16

sisters, antecedents
and/or descendants of such Person’s spouse, that is and remains solely for the
benefit of such Person and/or such Person’s spouse, brothers or sisters,
antecedents and/or descendants or the brothers or sisters, antecedents and/or
descendants or such Person’s spouse, and any retirement plan for such Person.

 

“Good Reason” means (i) a reduction in
Executive’s Annual Base Salary, (ii) a material diminution in Executive’s
titles or duties inconsistent with his position, or (iii) a change in
Executive’s principal office to a location more than 25 miles from 15030 Avenue
of Science, Suite 200, San Diego, California  92128, in each case without the prior written
consent of Executive; provided that written notice of Executive’s
resignation must be delivered to the Company within 30 days after his actual
knowledge of any such event in order for such resignation to be with Good
Reason for any purpose hereunder.

 

“GTCR I” means GTCR Golder Rauner, L.L.C., a
Delaware limited liability company.

 

“GTCR II” means GTCR Golder Rauner II, L.L.C.,
a Delaware limited liability company.

 

“Investor” means any investment fund managed by
GTCR I or GTCR II that at any time executes a counterpart to the Purchase
Agreement or otherwise agrees to be bound thereby.

 

“LLC Agreement” means the Limited Liability
Company Agreement of Solera LLC, dated as of April 1, 2005, as amended
from time to time pursuant to its terms.

 

“Original Cost” means $0.30 per share (as
proportionately adjusted for all stock splits, stock dividends and other
recapitalizations subsequent to the date hereof).

 

“Person” means an individual, a partnership, a
limited liability company, a corporation, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization, investment
fund, any other business entity and a governmental entity or any department,
agency or political subdivision thereof.

 

“Public Offering” means the sale in an
underwritten public offering registered under the Securities Act of equity
securities of the Company.

 

“Public Sale” means (i) any sale pursuant
to a registered public offering under the Securities Act or (ii) any sale
to the public pursuant to Rule 144 promulgated under the Securities Act
effected through a broker, dealer or market maker (other than pursuant to Rule 144(k) prior
to a Public Offering).

 

“Purchase Agreement” means the Second Amended
and Restated Securities Purchase Agreement, dated as of May 10, 2007, by
and among the Company and GTCR Fund VIII, L.P., a Delaware limited partnership,
GTCR Fund VIII/B, L.P., a Delaware limited partnership, and GTCR Co-Invest II,
L.P., a Delaware limited partnership.

 

 

17

“Registration Agreement” means the Registration
Rights Agreement, dated as of April 1, 2005, among Solera LLC and certain
of its securityholders, as amended from time to time pursuant to its terms.

 

“RSU Vested Ratio” means, as of a given date,
the quotient of (a) the number of RSUs that have vested (pursuant to the
RSU Agreement or hereunder) as of such date, divided by (b) the total
number of RSUs granted under the RSU Agreement.

 

“Sale of the Company” means any transaction or
series of related transactions pursuant to which any Person or group of related
Persons other than, except for purposes of Section 2(c), the
Investors or their Affiliates in the aggregate acquire(s) (i) equity
securities of the Company possessing the voting power (other than voting rights
accruing only in the event of a default, breach or event of noncompliance) to
elect a majority of the Board (whether by merger, consolidation,
reorganization, combination, sale or transfer of the Company’s equity,
securityholder or voting agreement, proxy, power of attorney or otherwise) or (ii) all
or substantially all of the Company’s assets determined on a consolidated
basis; provided that a Public Offering shall not constitute a Sale of
the Company.

 

“Securities Act” means the Securities Act of
1933, as amended from time to time.

 

“Separation” means Executive ceasing to be
employed by the Company, Employer or any of their respective Subsidiaries for
any reason.

 

“Subsidiary” means, with respect to any Person,
any corporation, limited liability company, partnership, association, or
business entity of which (i) if a corporation, a majority of the total
voting power of shares of stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers, or trustees
thereof is at the time owned or controlled, directly or indirectly, by that
Person or one or more of the other Subsidiaries of that Person or a combination
thereof, or (ii) if a limited liability company, partnership, association,
or other business entity (other than a corporation), a majority of  partnership or other similar ownership
interest thereof is at the time owned or controlled, directly or indirectly, by
that Person or one or more Subsidiaries of that Person or a combination
thereof.  For purposes hereof, a Person
or Persons shall be deemed to have a majority ownership interest in a limited
liability company, partnership, association, or other business entity (other
than a corporation) if such Person or Persons shall be allocated a majority of
limited liability company, partnership, association, or other business entity
gains or losses or shall be or control any managing director or general partner
of such limited liability company, partnership, association, or other business
entity.  For purposes hereof, references
to a “Subsidiary” of any Person shall be given effect only at such times
that such Person has one or more Subsidiaries, and, unless otherwise indicated,
the term “Subsidiary” refers to a Subsidiary of the Company.

 

“Total Share Number” means, as of a given date,
1,628,622 plus the aggregate number of shares of Common Stock issued as of such
date with respect to RSUs that have vested.

 

“Transfer” means to sell, transfer, assign,
pledge or otherwise dispose of (whether with or without consideration and
whether voluntarily or involuntarily or by operation of law).

 

18

 

“Vested Ratio” means, as of a given date, the
quotient of (a) the number of Vested Carried Shares as of such date,
divided by (b) 1,309,226.  For the
purposes of determining the Vested Ratio, the number of Vested Carried Shares
shall include all such shares, without duplication, (x) held on such date
by Executive, Executive Trust, Aquila, Aquila Trust or any Permitted Transferee
or (y) transferred on or prior to such date by Executive or a Permitted
Transferee in a Public Sale or otherwise.

 

10.   Notices.  All notices, demands or other communications
to be given or delivered under or by reason of the provisions of this Agreement
shall be in writing and shall be deemed to have been given when (i) delivered
personally to the recipient, (ii) sent to the recipient by reputable
express courier service (charges prepaid), (iii) mailed to the recipient
by certified or registered mail, return receipt requested and postage prepaid,
or (iv) telecopied to the recipient (with hard copy sent to the recipient
by reputable overnight courier service (charges prepaid) that same day) if
telecopied before 5:00 p.m. Chicago, Illinois time on a business day, and
otherwise on the next business day.  Such
notices, demands and other communications shall be sent to the parties at the
addresses indicated below:

 

	
   

  	
  If to Employer:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Solera, Inc.

  
	
   

  	
   

  	
  15030 Avenue of
  Science, Suite 200

  
	
   

  	
   

  	
  San
  Diego, CA 92128

  
	
   

  	
   

  	
  Attention:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
  Facsimile:

  	
  (858) 812-3011

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with copies to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GTCR Fund VIII,
  L.P., GTCR Fund VIII/B, L.P., and

  
	
   

  	
   

  	
  GTCR Co-Invest
  II, L.P.

  
	
   

  	
   

  	
  c/o GTCR Golder
  Rauner II, L.L.C.

  
	
   

  	
   

  	
  6100 Sears Tower

  
	
   

  	
   

  	
  Chicago,
  Illinois 60606-6402

  
	
   

  	
   

  	
  Attention:

  	
  Philip A.
  Canfield

  
	
   

  	
   

  	
   

  	
  Craig A. Bondy

  
	
   

  	
   

  	
  Facsimile:

  	
  (312) 382-2201

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Kirkland &
  Ellis LLP

  
	
   

  	
   

  	
  200 East Randolph
  Drive

  
	
   

  	
   

  	
  Chicago,
  Illinois 60601

  
	
   

  	
   

  	
  Attention:

  	
  Mark A. Fennell

  
	
   

  	
   

  	
  Facsimile:

  	
  (312) 861-2200

  
	
   

  	
   

  	
   

  
	
   

  	
  If to the
  Company:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Solera
  Holdings, Inc.

  
	
   

  	
   

  	
  15030 Avenue of
  Science, Suite 200

  
						

 

19

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  San Diego, CA  92128

  
	
   

  	
   

  	
  Attention:

  	
  Chief Executive
  Officer

  
	
   

  	
   

  	
  Facsimile:

  	
  (858) 812-3011

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with copies to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GTCR Golder
  Rauner II, L.L.C.

  
	
   

  	
   

  	
  6100 Sears Tower

  
	
   

  	
   

  	
  Chicago,
  Illinois 60606-6402

  
	
   

  	
   

  	
  Attention:

  	
  Philip A.
  Canfield

  
	
   

  	
   

  	
   

  	
  Craig A. Bondy

  
	
   

  	
   

  	
  Facsimile:

  	
  (312) 382-2201

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Kirkland &
  Ellis LLP

  
	
   

  	
   

  	
  200 East
  Randolph Drive

  
	
   

  	
   

  	
  Chicago,
  Illinois  60601

  
	
   

  	
   

  	
  Attention:

  	
  Stephen L.
  Ritchie, P.C.

  
	
   

  	
   

  	
   

  	
  Mark A. Fennell

  
	
   

  	
   

  	
  Facsimile:

  	
  (312) 861-2200

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  If to Executive,
  Executive Trust, Aquila or Aquila Trust:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tony Aquila

  
	
   

  	
   

  	
  7757 Doug Hill
  Court

  
	
   

  	
   

  	
  San Diego,
  CA  92127

  
	
   

  	
   

  	
  Facsimile: 

  	
  (858) 812-3011

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fenwick &
  West LLP

  
	
   

  	
   

  	
  801 California
  St.

  
	
   

  	
   

  	
  Mountain View,
  CA 94041

  
	
   

  	
   

  	
  Attention:

  	
  Mark A. Leahy

  
	
   

  	
   

  	
  Facsimile:

  	
  (650) 938-5200

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  If to the
  Investors:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GTCR Golder
  Rauner II, L.L.C.

  
	
   

  	
   

  	
  6100 Sears Tower

  
	
   

  	
   

  	
  Chicago,
  Illinois  60606-6402

  
	
   

  	
   

  	
  Attention:

  	
  Philip A.
  Canfield

  
	
   

  	
   

  	
   

  	
  Craig A. Bondy

  
	
   

  	
   

  	
  Facsimile:

  	
  (312) 382-2201

  

 

20

	
   

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Kirkland &
  Ellis LLP

  
	
   

  	
   

  	
  200 East
  Randolph Drive

  
	
   

  	
   

  	
  Chicago,
  Illinois  60601

  
	
   

  	
   

  	
  Attention:

  	
  Stephen L.
  Ritchie, P.C.

  
	
   

  	
   

  	
   

  	
  Mark A. Fennell

  
	
   

  	
   

  	
  Facsimile:

  	
  (312) 861-2200

  

 

or such other address or
to the attention of such other Person as the recipient party shall have
specified by prior written notice to the sending party.

 

11.   General Provisions.

 

(a)   Transfers in Violation of Agreement.  Any Transfer or attempted Transfer of any
Executive Securities in violation of any provision of this Agreement shall be
void, and the Company shall not record such Transfer on its books or treat any
purported transferee of such Executive Securities as the owner of such equity
for any purpose.

 

(b)   Severability.  Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in
any jurisdiction, such invalidity, illegality or unenforceability will not
affect any other provision or any other jurisdiction, but this Agreement will
be reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

 

(c)   Complete Agreement.  The Restated Senior Management Agreement is
amended, restated and superseded by this Agreement in its entirety; provided
that, notwithstanding the foregoing or anything else to the contrary in this
Agreement, nothing herein shall relieve any party from any liability for any
breach prior to the date hereof of the Restated Senior Management Agreement or
any breach prior to April 13, 2006 of the Original Senior Management
Agreement and any provision so breached shall not be superseded by this
Agreement for purposes of actions taken in connection with such breach and
liabilities related thereto and the rights of the parties hereto under Section 1(e) of
each of the Restated Senior Management Agreement and the Original Senior
Management Agreement shall survive this amendment and restatement.  This Agreement, the RSU Grant Agreement and
those documents expressly referred to herein embody the complete agreement and
understanding among the parties and supersede and preempt any prior
understandings, agreements or representations by or among the parties, written
or oral, which may have related to the subject matter hereof in any way.

 

(d)   No Strict Construction.  The language used in this Agreement shall be
deemed to be the language chosen by the parties hereto to express their mutual
intent, and no rule of strict construction shall be applied against any
party.

 

 

21

(e)   Counterparts.  This Agreement may be executed in separate
counterparts (including by means of facsimile), each of which is deemed to be
an original and all of which taken together constitute one and the same
agreement.

 

(f)    Successors and Assigns.  Except as otherwise provided herein, this
Agreement shall bind and inure to the benefit of and be enforceable by
Executive, Executive Trust, Aquila, Aquila Trust, the Company, Employer, the
Investors and their respective successors and assigns (including subsequent
holders of Executive Securities); provided that the rights and
obligations of Executive under this Agreement shall not be assignable except in
connection with a permitted transfer of Executive Securities hereunder.

 

(g)   Choice of Law.  The law of the State of Delaware will govern
all questions concerning the relative rights of the Company, Employer and its
securityholders.  All other questions
concerning the construction, validity and interpretation of this Agreement and
the exhibits hereto will be governed by and construed in accordance with the
internal laws of the State of Delaware, without giving effect to any choice of
law or conflict of law provision or rule (whether of the State of Delaware
or any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Delaware.

 

(h)   MUTUAL WAIVER OF JURY TRIAL.  BECAUSE DISPUTES ARISING IN CONNECTION WITH
COMPLEX TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN
EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL
LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR
DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS.  THEREFORE, TO ACHIEVE THE BEST COMBINATION OF
THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, EACH PARTY TO THIS
AGREEMENT HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR
PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE BETWEEN OR AMONG ANY OF THE PARTIES
HERETO, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF,
CONNECTED WITH, RELATED OR INCIDENTAL TO THIS AGREEMENT, THE TRANSACTIONS
CONTEMPLATED HEREBY AND/OR THE RELATIONSHIP ESTABLISHED AMONG THE PARTIES
HEREUNDER.

 

(i)    Executive’s Cooperation.  During the Employment Period and thereafter,
Executive shall cooperate with the Company, Employer and their respective
Subsidiaries and Affiliates in any disputes  with
third parties, internal investigation or administrative, regulatory or judicial
proceeding as reasonably requested by the Company (including, without
limitation, Executive being available to the Company upon reasonable notice for
interviews and factual investigations, appearing at the Company’s request to
give testimony without requiring service of a subpoena or other legal process,
volunteering to the Company all pertinent information and turning over to the
Company all relevant documents which are or may come into Executive’s
possession, all at times and on schedules that are reasonably consistent with
Executive’s other permitted activities and commitments). In the event the
Company requires Executive’s cooperation in accordance with this paragraph
during the Employment Period or the Severance Period, the Company shall
reimburse Executive solely for reasonable travel expenses (including lodging
and meals, upon submission of receipts). 
In the event the Company requires Executive’s 

 

22

cooperation in accordance with this paragraph after
the Severance Period, the Company shall reimburse Executive for reasonable
travel expenses (including lodging and meals, upon submission of receipts) and
compensate Executive at a reasonable rate for such cooperation, as determined
by mutual agreement of the Company and Executive.

 

(j)    Remedies.  Each of the parties to this Agreement (and
the Investors as third-party beneficiaries) will be entitled to enforce its
rights under this Agreement specifically, to recover damages and costs
(including attorney’s fees) caused by any breach of any provision of this
Agreement and to exercise all other rights existing in its favor.  The parties hereto agree and acknowledge that
money damages may not be an adequate remedy for any breach of the provisions of
this Agreement and that any party may in its sole discretion apply to any court
of law or equity of competent jurisdiction (without posting any bond or
deposit) for specific performance and/or other injunctive relief in order to
enforce or prevent any violations of the provisions of this Agreement.

 

(k)   Amendment and Waiver.  The provisions of this Agreement may be
amended and waived only with the prior written consent of the Company,
Employer, Executive and the Majority Holders (as defined in the Purchase
Agreement).

 

(l)    Insurance.  The Company, at its discretion, may apply for
and procure in its own name and for its own benefit life and/or disability
insurance on Executive in any amount or amounts considered available.  Executive agrees to cooperate in any
reasonable medical or other examination, supply any information, and to execute
and deliver any applications or other instruments in writing as may be
reasonably necessary to obtain and constitute such insurance.  Executive hereby represents that he has no
reason to believe that his life is not insurable at rates now prevailing for healthy
men of his age.

 

(m)  Business Days.  If any time period for giving notice or
taking action hereunder expires on a day which is a Saturday, Sunday or holiday
in the state in which the Company’s chief executive office is located, the time
period shall be automatically extended to the business day immediately
following such Saturday, Sunday or holiday.

 

(n)   Indemnification and Reimbursement of
Payments on Behalf of Executive.  The
Company and its Subsidiaries shall be entitled to deduct or withhold from any
amounts owing from the Company or any of its Subsidiaries to Executive any
federal, state, local or foreign withholding taxes, excise taxes, or employment
taxes (“Taxes”) imposed with respect to Executive’s compensation or
other payments from the Company or its Subsidiaries or Executive’s ownership
interest in the Company, including, without limitation, wages, bonuses,
dividends, the receipt or exercise of equity options and/or the receipt or
vesting of restricted equity.  In the
event the Company or its Subsidiaries do not make such deductions or
withholdings, Executive shall indemnify the Company and its Subsidiaries for
any amounts paid with respect to any such Taxes, together with any interest,
penalties and related expenses thereto.

 

(o)   Reasonable Expenses.  Employer agrees to pay the reasonable fees
and expenses of Executive’s counsel arising in connection with the negotiation
and execution of this Agreement and the consummation of the transactions
contemplated by this Agreement.

 

 

23

(p)   Termination.  This Agreement (except for the provisions of Sections
6(a) and (b)) shall survive a Separation and shall remain in full
force and effect after such Separation.

 

(q)   Adjustments of Numbers.  All numbers set forth herein that refer to
prices or amounts will be appropriately adjusted to reflect stock splits, stock
dividends, combinations of shares and other recapitalizations affecting the
subject class of equity that occur after the date hereof.

 

(r)    Deemed Transfer of Executive Securities.  If the Company (and/or the Investors and/or
any other Person acquiring securities) shall make available, at the time and
place and in the amount and form provided in this Agreement, the consideration
for the Executive Securities to be repurchased in accordance with the
provisions of this Agreement, then from and after such time, the Person from
whom such shares are to be repurchased shall no longer have any rights as a
holder of such shares (other than the right to receive payment of such
consideration in accordance with this Agreement), and such shares shall be
deemed purchased in accordance with the applicable provisions hereof and the
Company (and/or the Investors and/or any other Person acquiring securities)
shall be deemed the owner and holder of such shares , whether or not the
certificates therefor have been delivered as required by this Agreement.

 

(s)   No Pledge or Security Interest.  The purpose of the Company’s retention of
Executive’s certificates and executed security powers is solely to facilitate
the provisions set forth in Section 3 herein and does not by itself
constitute a pledge by Executive of, or the granting of a security interest in,
the underlying equity.

 

(t)    Rights Granted to GTCR and its Affiliates.  Any rights granted to GTCR I, GTCR II or
their Affiliates hereunder may also be exercised (in whole or in part) by their
designees.

 

(u)   Delivery by Facsimile.  This Agreement, the agreements referred to
herein, and each other agreement or instrument entered into in connection
herewith or therewith or contemplated hereby or thereby, and any amendments
hereto or thereto, to the extent signed and delivered by means of a facsimile
machine, shall be treated in all manner and respects as an original agreement
or instrument and shall be considered to have the same binding legal effect as
if it were the original signed version thereof delivered in person.  At the request of any party hereto or to any
such agreement or instrument, each other party hereto or thereto shall
reexecute original forms thereof and deliver them to all other parties.  No party hereto or to any such agreement or
instrument shall raise the use of a facsimile machine to deliver a signature or
the fact that any signature or agreement or instrument was transmitted or
communicated through the use of a facsimile machine as a defense to the
formation or enforceability of a contract and each such party forever waives
any such defense.

 

*     *    
*     *     *

 

24

IN WITNESS WHEREOF, the parties hereto have executed
this Second Amended and Restated Senior Management Agreement on the date first
above written.

 

	
   

  	
  SOLERA
  HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jack
  Pearlstein

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
  SOLERA,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jack
  Pearlstein

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   /s/ Tony Aquila

  	
   

  
	
   

  	
  TONY
  AQUILA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ANTHONY
  AQUILA 2007 ANNUITY TRUST

  DATED MAY 10, 2007

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tony Aquila

  	
   

  
	
   

  	
  Name:

  	
  Tony Aquila

  	
   

  
	
   

  	
  Its:

  	
  Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   /s/ Shelly Renee Aquila

  	
   

  
	
   

  	
  SHELLY
  RENEE AQUILA

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SHELLY
  RENEE AQUILA 2007 ANNUITY TRUST DATED MAY 10, 2007

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Shelly Renee Aquila

  	
   

  
	
   

  	
  Name:

  	
  Shelly Renee
  Aquila

  	
   

  
	
   

  	
  Its:

  	
  Trustee

  	
   

  
								

 

Signature Page to Second
Amended and Restated Senior Management Agreement of Tony Aquila

 

25

	
  Agreed and Accepted:

  	
   

  	
   

  
	
  THE INVESTORS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GTCR FUND VIII, L.P.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  GTCR Partners VIII,
  L.P.

  	
   

  
	
  Its:

  	
  General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  GTCR Golder Rauner II,
  L.L.C.

  	
   

  
	
  Its:

  	
  General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Phillip A. Canfield

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Its:

  	
  Principal

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GTCR FUND VIII/B, L.P.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  GTCR Partners VIII,
  L.P.

  	
   

  
	
  Its:

  	
  General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  GTCR Golder Rauner II,
  L.L.C.

  	
   

  
	
  Its:

  	
  General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Phillip A. Canfield

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Its:

  	
  Principal

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GTCR CO-INVEST II, L.P.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  GTCR Golder Rauner II,
  L.L.C.

  	
   

  
	
  Its:

  	
  General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Phillip A. Canfield

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Its:

  	
  Principal

  	
   

  
									

 

Signature Page to Second
Amended and Restated Senior Management Agreement of Tony Aquila

 

26

 

EXHIBIT A

 

ASSIGNMENT SEPARATE FROM
CERTIFICATE

 

FOR VALUE RECEIVED, Tony Aquila  does hereby sell, assign and transfer unto
                              ,
a                                   ,
                
shares of the common stock, par value $0.01 per share, of Solera Holdings, Inc.,
a Delaware corporation (the “Company”), standing in the undersigned’s
name on the books of the Company represented by Certificate Nos.
                                  
herewith and does hereby irrevocably constitute and appoint each officer of the
Company (acting alone or with one or more other such officers) as attorney to
transfer said securities on the books of the Company with full power of
substitution in the premises.  THIS
ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THAT CERTAIN SECOND AMENDED
AND RESTATED SENIOR MANAGEMENT AGREEMENT BY AND AMONG THE COMPANY, SOLERA, INC.
AND THE UNDERSIGNED AND THE OTHER PARTIES THERETO DATED AS OF JANUARY 28, 2008,
AS AMENDED.

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Tony Aquila

  

 

EXHIBIT B

 

SPOUSAL
CONSENT

 

The undersigned spouse of Executive hereby
acknowledges that I have read the foregoing Second Amended and Restated Senior
Management Agreement, dated as of January 28, 2008, and the Registration
Agreement referred to therein, and that I understand their contents.  I am aware that the foregoing Second Amended
and Restated Senior Management Agreement provides for the sale or repurchase of
my spouse’s Executive Securities under certain circumstances and/or imposes
other restrictions on such securities (including, without limitation,
restrictions on transfer).  I agree that
my spouse’s interest in these securities is subject to these restrictions and
any interest that I may have in such securities shall be irrevocably bound by these
agreements and further, that my community property interest, if any, shall be
similarly bound by these agreements.

 

	
   

  	
   

  	
  Date: January 28,
  2008

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Spouse’s Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date: January 28,
  2008

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Witness’ Name:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]