Document:

Exhibit 10.16

 

MASTER LOAN AGREEMENT

 

Dated as of August 11, 2005

 

Among

 

THE NEWKIRK MASTER LIMITED PARTNERSHIP,

a Delaware limited partnership (“NMLP”)

 

and

 

KEYBANK NATIONAL ASSOCIATION

(“Administrative Agent” and “Deposit Account Co-Agent”)

 

and

 

BANK OF AMERICA, N.A. (“Deposit Account
Co-Agent”)

 

and

 

LASALLE BANK, NATIONAL ASSOCIATION (“Documentation
Agent”)

 

and

 

KEYBANK NATIONAL ASSOCIATION, BANK OF
AMERICA, N.A.

and any other Lenders, which are, or may
become, parties to this Agreement (“Lenders”)

 

$477,759,445.00 Credit Facility

 

 

T-TWO PARTNERS, L.P.,

a Delaware limited partnership (“T-Two”)

 

and

 

KEYBANK NATIONAL ASSOCIATION

(“Administrative Agent” and “Deposit Account Co-Agent”)

 

and

 

BANK OF AMERICA, N.A. (“Deposit Account
Co-Agent”)

 

and

 

LASALLE BANK, NATIONAL ASSOCIATION (“Documentation
Agent”)

 

KEYBANK NATIONAL ASSOCIATION, BANK OF
AMERICA, N.A.

and any other Lenders, which are, or may
become, parties to this Agreement

 

$272,240,555.00 Credit Facility

 

 

KEYBANC CAPITAL MARKETS (“Syndication Agent”)

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  1 BACKGROUND

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Defined Terms

  	
   

  
	
  1.2

  	
  Borrowers

  	
   

  
	
  1.3

  	
  NMLP Loan

  	
   

  
	
  1.4

  	
  T-Two Loan

  	
   

  
	
  1.5

  	
  Guaranties and Indemnities

  	
   

  
	
  1.6

  	
  Loans

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  2 LOAN PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Amount of Loans

  	
   

  
	
  2.2

  	
  Term of Loans; Extension Rights

  	
   

  
	
  2.3

  	
  Interest Rate and Payment Terms

  	
   

  
	
  2.4

  	
  Loan Fees; Administrative Agent’s Fees

  	
   

  
	
  2.5

  	
  Acceleration

  	
   

  
	
  2.6

  	
  Conditions to Extending Loan

  	
   

  
	
  2.7

  	
  Additional Provisions Related to Interest
  Rate Selection

  	
   

  
	
  2.8

  	
  Interest Rate Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3 SECURITY FOR THE LOANS; LOAN AND SECURITY DOCUMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Security for NMLP Loan

  	
   

  
	
  3.2

  	
  NMLP
  Loan Documents and NMLP Security Documents

  	
   

  
	
  3.3

  	
  Security
  for T-Two Loan

  	
   

  
	
  3.4

  	
  T-Two
  Loan Documents and T-Two Security Documents

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4 CONTINUING AUTHORITY OF
  AUTHORIZED REPRESENTATIVES

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5 CONDITIONS PRECEDENT

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Closing
  NMLP Loan and Funding NMLP Loan Advance

  	
   

  
	
  5.2

  	
  Closing
  T-Two Loan and Funding T-Two Loan Advance

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6 WARRANTIES AND REPRESENTATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  NMLP

  	
   

  
	
  6.2

  	
  T-Two

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  7 AFFIRMATIVE COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  NMLP

  	
   

  
	
  7.2

  	
  T-Two

  	
   

  
	
  7.3

  	
  Financial
  Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8 NEGATIVE COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  NMLP

  	
   

  
	
  8.2

  	
  T-Two

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9 SPECIAL PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Legal
  Requirements

  	
   

  
	
  9.2

  	
  NMLP
  Distributions

  	
   

  

 

 

	
  9.3

  	
  Limited
  Recourse Provisions

  	
   

  
	
  9.4

  	
  Payment
  of Obligations

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10 EVENTS OF DEFAULT

  	
   

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  Default
  and Events of Default

  	
   

  
	
  10.2

  	
  Grace
  Periods and Notice

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11 REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  11.1

  	
  Remedies

  	
   

  
	
  11.2

  	
  Written
  Waivers

  	
   

  
	
  11.3

  	
  Power
  of Attorney

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12 SECURITY INTEREST AND SET-OFF

  	
   

  
	
   

  	
   

  	
   

  
	
  12.1

  	
  Security
  Interest

  	
   

  
	
  12.2

  	
  Set-Off

  	
   

  
	
  12.3

  	
  Application

  	
   

  
	
  12.4

  	
  Right
  to Freeze

  	
   

  
	
  12.5

  	
  Additional
  Rights

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  13 THE AGENT AND THE LENDERS

  	
   

  
	
   

  	
   

  	
   

  
	
  13.1

  	
  Rights,
  Duties and Immunities of the Administrative Agent

  	
   

  
	
  13.2

  	
  Respecting
  Loans and Payments

  	
   

  
	
  13.3

  	
  Assignment
  and Participation

  	
   

  
	
  13.4

  	
  Administrative
  Matters

  	
   

  
	
  13.5

  	
  Syndication
  Agent; Deposit Account Co-Agent; Documentation Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14 CASUALTY AND TAKING

  	
   

  
	
   

  	
   

  	
   

  
	
  14.1

  	
  Casualty
  or Taking; Obligation To Repair

  	
   

  
	
  14.2

  	
  Adjustment
  of Claims

  	
   

  
	
  14.3

  	
  Payment
  and Application of Insurance Proceeds and Condemnation Awards

  	
   

  
	
  14.4

  	
  Conditions
  To Release of Insurance Proceeds

  	
   

  
	
  14.5

  	
  Consultant

  	
   

  
	
  14.6

  	
  Excess

  	
   

  
	
  14.7

  	
  Leases

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 15 GENERAL PROVISIONS.

  	
   

  
	
   

  	
   

  	
   

  
	
  15.1

  	
  Notices

  	
   

  
	
  15.2

  	
  Limitations
  on Assignment

  	
   

  
	
  15.3

  	
  Further
  Assurances

  	
   

  
	
  15.4

  	
  Payments.

  	
   

  
	
  15.5

  	
  Parties
  Bound

  	
   

  
	
  15.6

  	
  Governing
  Law; Consent to Jurisdiction; Mutual Waiver of Jury Trial

  	
   

  
	
  15.7

  	
  Survival

  	
   

  
	
  15.8

  	
  Cumulative
  Rights

  	
   

  
	
  15.9

  	
  Claims
  Against Administrative Agent or Lenders

  	
   

  
	
  15.10

  	
  Regarding
  Consents

  	
   

  
	
  15.11

  	
  Obligations
  Absolute

  	
   

  
	
  15.12

  	
  Table
  of Contents, Title and Headings

  	
   

  
	
  15.13

  	
  Counterparts

  	
   

  

 

ii

 

	
  15.14

  	
  Satisfaction
  of Commitment

  	
   

  
	
  15.15

  	
  Time
  Of the Essence

  	
   

  
	
  15.16

  	
  No
  Oral Change

  	
   

  
	
  15.17

  	
  Monthly
  Statements

  	
   

  

 

iii

 

EXHIBITS

 

	
  Exhibit A

  	
  —

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit B-1

  	
  –

  	
  Sources and Uses of NMLP Loan

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit B-2

  	
  —

  	
  Sources and Uses of T-Two Loan

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit C-1

  	
  —

  	
  NMLP Note

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit C-2

  	
  —

  	
  T-Two Note

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit D

  	
  —

  	
  Authorized Representatives

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit E

  	
  —

  	
  Required Property, Hazard and Other Insurance

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit F

  	
  —

  	
  Ownership Interests and Taxpayer Identification Numbers

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit G-1

  	
  —

  	
  Compliance Certificate for NMLP Loan

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit G-2

  	
  –

  	
  Compliance Certificate for T-Two Loan

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit G-3

  	
  –

  	
  Financial Covenant Compliance Certificate

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit H

  	
  —

  	
  Form of Assignment and Acceptance

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit I

  	
  —

  	
  Lenders’ Commitments

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit J

  	
  —

  	
  Individual Properties

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit K

  	
  —

  	
  Loan Agenda

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit L

  	
  —

  	
  Other Partnerships

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit M

  	
  —

  	
  Newkirk Partnerships

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit N

  	
  —

  	
  Allocated Loan Amounts

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit O

  	
  —

  	
  Securitized Properties

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit P

  	
  —

  	
  Cash Flow Projections

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit Q

  	
  —

  	
  IPO Statement

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit R

  	
  —

  	
  Accounts

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit S

  	
  —

  	
  Notice of Rate Selection

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit T

  	
  —

  	
  NMLP Pre IPO Payment Amount Calculation Sheet

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit U

  	
  —

  	
  GMAC Borrowers

  	
   

  

 

iv

 

SCHEDULES

 

	
  Schedule 2.6.4

  	
   

  
	
  Schedule 6.1.4(c)

  	
   

  
	
  Schedule 6.1.4(d)

  	
   

  
	
  Schedule 6.1.5

  	
   

  
	
  Schedule 6.1.18(b)(i)

  	
   

  
	
  Schedule 6.1.18(b)(ii)(x)

  	
   

  
	
  Schedule 6.1.18(b)(ii)(y)

  	
   

  
	
  Schedule 6.1.18(b)(ii)(z)

  	
   

  
	
  Schedule 6.1.18(b)(iii)

  	
   

  
	
  Schedule 6.1.18(e)(ii)

  	
   

  
	
  Schedule 6.1.18(e)(iv)

  	
   

  
	
  Schedule 6.1.18(e)(vi)

  	
   

  
	
  Schedule 6.1.18(f)

  	
   

  
	
  Schedule 6.1.18(g)

  	
   

  
	
  Schedule 6.1.18(h)

  	
   

  
	
  Schedule 6.1.18(k)

  	
   

  
	
  Schedule 6.1.23

  	
   

  
	
  Schedule 6.1.24

  	
   

  
	
  Schedule 6.2.5

  	
   

  
	
  Schedule 6.2.15 below

  	
   

  
	
  Schedule 7.1.22(c)

  	
   

  
	
  Schedule 8.1.4(c)

  	
   

  
	
  Schedule 8.2.4(b)

  	
   

  

 

v

 

MASTER LOAN AGREEMENT

 

This agreement (“Loan Agreement” or “Agreement”) is made and entered
into as of the 11th day of August, 2005, by and between THE NEWKIRK
MASTER LIMITED PARTNERSHIP, a Delaware limited partnership having an address
c/o Winthrop Financial Associates, Seven Bulfinch Place, Suite 500, Boston,
Massachusetts (“NMLP”), and T-TWO PARTNERS, L.P., a Delaware limited
partnership having an address c/o Winthrop Financial Associates, Seven Bulfinch
Place, Suite 500, Boston, Massachusetts (“T-Two”; NMLP and T-Two are sometimes
hereinafter referred to individually as a “Borrower” and collectively as the “Borrowers”),
KEYBANK NATIONAL ASSOCIATION, a national banking association with a place of
business at 101 Federal Street, Boston, Massachusetts 02110, BANK OF AMERICA,
N.A., a national banking association with a place of business at 100 North
Tryon Street, Charlotte, North Carolina 28255, and the other lending
institutions which are, or may become, parties to this Agreement pursuant to
Section 13.3 (the “Lender” or “Lenders”), KEYBANK NATIONAL ASSOCIATION, a
national banking association with a place of business at 101 Federal Street,
Boston, Massachusetts 02110, as agent for itself and the other Lenders (the “Administrative
Agent” or “Agent”, and the “Deposit Account Co-Agent”), BANK OF AMERICA, N.A.,
a national banking association with a place of business at 100 North Tryon
Street, Charlotte, North Carolina 28255, as deposit account co-agent for itself
and the other Lenders (the “Deposit Account Co-Agent”), LASALLE BANK, NATIONAL
ASSOCIATION, a national banking association with a place of business at 135 S. LaSalle
Street, Chicago, Illinois 60603, as documentation agent for itself and the
other Lenders (the “Documentation Agent”), and KEYBANC CAPITAL MARKETS, with a
place of business at 101 Federal Street, Boston, Massachusetts 02110, as
syndication agent for itself and the Lenders (the “Syndication Agent”).

 

WITNESSETH:

 

ARTICLE
1

BACKGROUND.

 

1.1           Defined Terms.  Capitalized terms used in this Agreement are
defined either in Exhibit A, or in specific sections of this Agreement,
or in another Loan Document, as referenced in Exhibit A.

 

1.2           Borrowers.

 

1.2.1     NMLP
is a limited partnership organized under the laws of the State of Delaware, of
which the sole general partner is MLP GP LLC, a Delaware limited liability
company (“NMLP GP”).

 

1.2.2     T-Two
is a limited partnership organized under the laws of the State of Delaware, of
which the sole general partner is Holding Subsidiary LLC, a Delaware limited
liability company (“T-Two GP”).

 

1.3           NMLP Loan.

 

1.3.1     NMLP
entered into a certain loan arrangement (the “Existing NMLP Loan”) with Fleet
National Bank, as agent on behalf of certain lenders in the original principal
amount of $208,473,427.27, as evidenced by, among other

 

 

documents and instruments, that certain Loan Agreement dated November
24, 2003 entered into between NMLP, T-Two and Fleet National Bank (the “Fleet
Loan Agreement”).

 

1.3.2     NMLP
has applied to Lenders for a loan of Four Hundred Seventy-Seven Million, Seven
Hundred Fifty-Nine Thousand, Four Hundred Forty-Five Dollars ($477,759,445.00) (the “NMLP Loan”), the
proceeds of which are to be used to repay the Existing NMLP Loan in full, to
repay certain Mortgage Debt, to pay certain closing and transactional costs as
approved by the Administrative Agent, to provide funding for a working capital
reserve, and to provide certain initial funding into the T/I Fund Account, all
in accordance with the schedule of sources and uses annexed hereto as Exhibit
B-1.

 

1.4           T-Two Loan.

 

1.4.1     T-Two
entered into a certain loan arrangement (the “Existing T-Two Loan”) with Fleet
National Bank, as agent on behalf of certain lenders in the original principal
amount of $316,526,572.73, as evidenced by, among other documents and
instruments, the Fleet Loan Agreement.

 

1.4.2     T-Two
has applied to Lenders for a loan of Two Hundred Seventy-Two Million, Two
Hundred Forty Thousand, Five Hundred Fifty-Five Dollars ($272,240,555.00) (the “T-Two Loan”), the
proceeds of which are to be used to repay the Existing T-Two Loan in full, and
to pay certain closing and transactional costs as approved by the
Administrative Agent, all in accordance with the schedule of sources and uses
annexed hereto as Exhibit B-2.

 

1.5           Guaranties and Indemnities.

 

1.5.1     As
an inducement to Lenders to make the NMLP Loan, NK-Remainder Interest LLC,
NK-Leyden GP LLC, NK-Dautec GP LLC, NK-First Loan E Cert LLC, NK-First Loan F
Cert LLC, NK-First Loan G Cert LLC, MLP Manager Corp., Newkirk MLP Unit LLC,
NMLP GP, T-Two, Newkirk GP LLC, Newkirk Finco LLC, NK-CR Holdings LLC, Holding
Subsidiary LLC, the MLP Holders, NK-CR Corp, Newkirk Stock LLC, VNK L.L.C.,
Newkirk NL Holdings LLC, Newkirk GP Holding LLC, and each Guaranty Partnership
and Guaranty Partnership GP (in such capacity, severally and collectively
called “NMLP Guarantor”) have agreed to furnish either recourse or non-recourse
guaranties to the Administrative Agent with respect to the NMLP Loan.

 

1.5.2     As
a further inducement to Lenders to make the NMLP Loan, Newkirk NL Holdings,
LLC, a Delaware limited liability company, Newkirk MLP Corp., a Delaware
corporation, Apollo Real Estate Investment Fund III, L.P., a Delaware limited
partnership, Vornado Realty, L.P., a Delaware limited partnership, Vornado
Newkirk L.L.C., a Delaware limited liability company, and VNK L.L.C., a
Delaware limited liability company (severally and collectively called “Newkirk
Indemnitor”) have agreed to furnish certain indemnities to the Administrative
Agent with respect to the NMLP Loan.

 

2

 

1.5.3     As
an inducement to Lenders to make the T-Two Loan, NMLP, NK-CR Holdings LLC,
Holding Subsidiary LLC, NK-CR Corp., and Newkirk Stock LLC(in such capacity,
severally and collectively called “T-Two Guarantor”) have agreed to furnish
either recourse or non-recourse guaranties to the Administrative Agent with
respect to the T-Two Loan.

 

1.6           Loans.

 

1.6.1     Subject
to all of the terms, conditions and provisions of this Agreement, and of the
agreements and instruments referred to herein, each of the Lenders agrees
severally to make a loan to the NMLP equal to such Lender’s NMLP Commitment,
and NMLP agrees to accept and repay the NMLP Loan.

 

1.6.2     Subject
to all of the terms, conditions and provisions of this Agreement, and of the
agreements and instruments referred to herein, each of the Lenders agrees
severally to make a loan to the T-Two equal to such Lender’s T-Two Commitment,
and T-Two agrees to accept and repay the T-Two Loan.

 

1.6.3     The
NMLP Loan and the T-Two Loan are sometimes hereinafter referred to individually
as a “Loan” and collectively as the “Loans”.

 

ARTICLE
2

LOAN PROVISIONS.

 

2.1           Amount of Loans.

 

2.1.1     In
no event shall the aggregate amount of the NMLP Loan and Total NMLP Commitment
exceed $477,759,445.00.

 

2.1.2     In
no event shall the aggregate amount of the T-Two Loan and Total T-Two Commitment
exceed $272,240,555.00.

 

2.1.3     Any
and all advances of proceeds of the each Loan shall be made by the Lenders pro
rata in accordance with each Lender’s Commitment Percentage.

 

2.2           Term of Loans; Extension Rights.  The Loans shall be for a term (“Initial Term”)
commencing on the date hereof and ending on August 11, 2008 (“Maturity Date”).  The Initial Term of each Loan may be extended
for one year (“First Extended Term”) until August 11, 2009 (“First Extended
Maturity Date”) and thereafter may be further extended for an additional one
year (“Second Extended Term”) until August 11, 2010 (“Second Extended Maturity
Date”), in each instance upon satisfaction of the conditions set forth in
Section 2.6 (hereinafter, the First Extended Term and the Second Extended Term
may be referred to herein sometimes as the “Extended Term” as may be
applicable)(hereinafter, the First Extended Maturity Date and the Second
Extended Maturity Date may be referred to herein sometimes as the “Extended
Maturity Date” as may be applicable).

 

2.3           Interest Rate and Payment Terms.  The Loans shall be payable as to interest and
principal in accordance with the provisions of this Agreement and the
Notes.  This Agreement

 

3

 

also provides for interest at a
Default Rate, Late Charges and prepayment rights and fees.  All payments for the account of Lenders made
by either Borrower shall be applied to the respective accounts of the Lenders
in accordance with each Lender’s Commitment Percentage of the respective
Loans.  The Administrative Agent will
disburse such payments to the Lenders on the date of receipt thereof if
received prior to 12:00 noon on such date and, if not, on the next Business
Day.  Any and all interest rate selection
and conversion provisions in this Agreement are to be administered by the
Administrative Agent and to be allocated on a pro rata basis to the portion of
the balance due under the Notes held by each Lender based upon such Lender’s
Commitment Percentage.

 

2.3.1     Options.

 

(a)           The
NMLP Loan will bear interest at the Applicable Rate, unless the Default Rate is
applicable.  The Adjusted Prime Rate
shall be the “Applicable Rate”, except that the Adjusted LIBOR Rate shall be
the “Applicable Rate” with respect to portions of the NMLP Loan as to which a
LIBOR Rate Option is then in effect.

 

(b)           The
T-Two Loan will bear interest at the Applicable Rate, unless the Default Rate
is applicable.  The Adjusted Prime Rate
shall be the “Applicable Rate”, except that the Adjusted LIBOR Rate shall be
the “Applicable Rate” with respect to portions of the T-Two Loan as to which a
LIBOR Rate Option is then in effect.

 

(c)           For
each disbursement of proceeds of the Loan, each Borrower shall deliver to the
Administrative Agent irrevocable notice (which may be verbal notice provided
that the Borrower delivers to the Administrative Agent facsimile confirmation
or electronic mail confirmation within twenty four (24) hours of such verbal
notice) of the requested amount of such disbursement (x) if such disbursement
is to bear interest at the Adjusted Prime Rate, not later than 11:00 a.m.
Eastern Time on the second Business Day prior to the desired date of
disbursement and (y) if such disbursement is to bear interest at an Adjusted
LIBOR Rate, not later than 11:00 a.m. Eastern Time on the second LIBOR Business
Day prior to the desired date of disbursement.

 

(d)           Commencing
September 1, 2005, each Borrower shall pay interest in arrears on the first day
of every calendar month in the amount of all interest accrued and unpaid on the
respective Loan.  All payments (whether
of principal or of interest) shall be deemed credited to a Borrower’s account
only if received by 12:00 noon Eastern Time on a Business Day; otherwise, such
payment shall be deemed received on the next Business Day.

 

2.3.2     Election.  Provided that no Event of Default exists,
each Borrower shall have the option (the “LIBOR Rate Option”) to elect from
time to time in the manner and subject to the conditions hereinafter set forth
an Adjusted LIBOR Rate as the Applicable Rate for all or any portion of the
Loan which would otherwise bear interest at the Adjusted Prime Rate.

 

4

 

2.3.3     Notice.  The only manner in which a Borrower may
exercise the LIBOR Rate Option is by giving the Administrative Agent
irrevocable notice (which may be verbal notice provided that such Borrower
delivers to the Administrative Agent facsimile confirmation in the form of Exhibit
S attached hereto within twenty-four (24) hours) of such exercise not later
than 11:00 a.m. Eastern Time on the second LIBOR Business Day prior to the
proposed commencement of the relevant LIBOR Rate Interest Period, which written
notice shall specify: (i) the portion of the Loan with respect to which such Borrower
is electing the LIBOR Rate Option, (ii) the LIBOR Business Day upon which the
applicable LIBOR Rate Interest Period is to commence and (iii) the duration of
the applicable LIBOR Rate Interest Period. 
The LIBOR Rate Option may be exercised by Borrower only with respect to
any portion of the Loan equal to or in excess of $1,000,000.00. At no time may
there be more than six (6) LIBOR Rate Interest Periods in effect with respect
to the NMLP Loan, and six (6) LIBOR Rate Interest Periods in effect with respect
to the T-Two Loan.  The Applicable Rate
for any portion of the Loan with respect to which a Borrower has elected the
LIBOR Rate Option shall revert to the Adjusted LIBOR Rate with a LIBOR Rate
Interest Period of one-month (the “One-Month LIBOR Rate”), as of the last day
of the LIBOR Rate Interest Period applicable thereto (unless the Borrower again
exercises the LIBOR Rate Option for such portion of the Loan). The
Administrative Agent shall be under no duty to notify either Borrower that the
Applicable Rate on any portion of the Loan is about to revert from an Adjusted
LIBOR Rate to the One-Month LIBOR Rate.

 

2.3.4     Determination.  If Administrative Agent determines (which
determination shall be conclusive and binding upon each Borrower, absent
manifest error) (i) that Dollar deposits in an amount approximately equal to
the portion of the Loan for which Borrower has exercised the LIBOR Rate Option
for the designated LIBOR Rate Interest Period are not generally available at
such time in the London interbank market for deposits in Dollars, (ii) that the
rate at which such deposits are being offered will not adequately and fairly
reflect the cost to any Lender of maintaining a LIBOR Rate on such portion of
the Loan or of funding the same for such LIBOR Rate Interest Period due to
circumstances affecting the London interbank market generally, (iii) that
reasonable means do not exist for ascertaining a LIBOR Rate, or (iv) that an
Adjusted LIBOR Rate would be in excess of the maximum interest rate which a
Borrower may by law pay, then, in any such event, to the extent that such
Lender makes such determination generally with respect to its borrowers who
borrow funds at a rate based upon the LIBOR Rate, Administrative Agent shall so
notify the Borrowers and all portions of the Loan bearing interest at an
Adjusted LIBOR Rate that are so affected shall, as of the date of such
notification with respect to an event described in clause (ii) or (iv)
above, or as of the expiration of the applicable LIBOR Rate Interest Period
with respect to an event described in clause (i) or (iii) above,
bear interest at the Adjusted Prime Rate until such time as the situations
described above are no longer in effect or can be avoided by a Borrower
exercising a LIBOR Rate Option for a different LIBOR Rate Interest Period.

 

5

 

2.3.5     Accrual.  Interest at the Applicable Rate (or Default
Rate) shall be calculated for the actual number of days elapsed on the basis of
a 360-day year, including the first date of the applicable period to, but not
including, the date of repayment.

 

2.3.6     Breakage.  Each Borrower shall pay any amounts provided
for in Section 2.3.15, including, without limitation, Breakage Costs incurred
from time to time by any Lender upon demand within fifteen (15) Business Days
of receipt of written notice from Administrative Agent.

 

2.3.7     Change
in Law.  If the introduction of or
any change in any law, regulation or treaty, or in the interpretation thereof
by any Governmental Authority charged with the administration or interpretation
thereof, shall make it unlawful for any Lender to maintain the Applicable Rate
at an Adjusted LIBOR Rate with respect to the Loan or any portion thereof, or
to fund the Loan or any portion thereof in Dollars in the London interbank
market, or to give effect to its obligations regarding the LIBOR Rate Option as
contemplated by the Loan Documents, then, to the extent that such Lender makes
such determination generally with respect to its borrowers who borrow funds at
a rate based upon the LIBOR Rate, (1) Administrative Agent shall notify the
Borrower that such Lender is no longer able to maintain the Applicable Rate at
an Adjusted LIBOR Rate, (2) the LIBOR Rate Option shall immediately terminate,
(3) the Applicable Rate for any portion of the Loan for which the Applicable
Rate is then an Adjusted LIBOR Rate shall automatically be converted to the
Adjusted Prime Rate, and (4) the Borrowers shall pay to Administrative Agent
any amounts provided for in Section 2.3.15, including, without limitation,
Breakage Costs (if any) incurred by such Lender in connection with such
conversion.  Thereafter, a Borrower shall
not be entitled to exercise the LIBOR Rate Option until such time as the
situation described herein is no longer in effect or can be avoided by a
Borrower exercising a LIBOR Rate Option for a different LIBOR Rate Interest
Period.  So long as no Event of Default
has occurred and is continuing, upon written demand of a Borrower, the Borrower
may with thirty (30) days written notice to the Administrative Agent, require
any such Lender unable to maintain the Applicable Rate at an Adjusted LIBOR
Rate pursuant to this Section to sell and assign its entire interest in the
Loan pursuant to Section 13.3 hereof to any Eligible Assignee identified by the
Borrower in its demand and reasonably approved by the Administrative Agent,
upon payment by such Eligible Assignee of the entire par amount of such Lender’s
interest in the Loan and all accrued interest thereon, plus any amounts
provided for in Section 2.3.15, including, without limitation, any applicable
Breakage Costs and any other amounts payable to such Lender.

 

2.3.8     Principal.

 

(a)           Scheduled
Payments.

 

(i)            Prior
to receipt of the IPO Payment (if applicable), NMLP and T-Two shall make the
following regularly scheduled principal payments:

 

6

 

(1)           T-Two.  Commencing on October 15, 2005, and
continuing on the fifteenth day of each January, April, July and October
thereafter (each, a “Principal Payment Date”), T-Two shall pay principal in
installments of $1,312,500.00 (the “T-Two Pre IPO Payment Amount”).  To the extent the Maturity Date is extended
to any Extended Maturity Date, the required quarterly principal payment set forth
above shall continue to be due on each Principal Payment Date.  The entire principal balance of the T-Two
Loan shall be due and payable in full on the Maturity Date (or as may be
applicable, any Extended Maturity Date).

 

(2)           NMLP.  On each Principal Payment Date, NMLP shall
pay principal in quarterly installments of the NMLP Pre IPO Payment Amount. To
the extent the Maturity Date is extended to any Extended Maturity Date, the
required quarterly principal payment set forth above shall continue to be due on
each Principal Payment Date.  The entire
principal balance of the Loan shall be due and payable in full on the Maturity
Date (or as may be applicable, any Extended Maturity Date).  Together with each such payment, NMLP shall
provide the Administrative Agent with a completed NMLP Pre IPO Payment Amount
Calculation Sheet in the form of Exhibit T attached hereto and such
other evidence as the Administrative Agent shall reasonably request in order to
demonstrate the calculation of the subject NMLP Pre IPO Payment Amount,
including, without limitation, the calculation of the Excess Cash Flow for the
subject Fiscal Quarter.

 

(ii)           After
receipt of the IPO Payment, NMLP and T-Two shall make the following regularly
scheduled principal payments:

 

(1)           T-Two.  Commencing on the first Principal Payment
Date after receipt of the IPO Payment and continuing on each Principal Payment
Date thereafter, T-Two shall pay principal in quarterly installments of
$500,000.00 (the “T-Two Post IPO Payment Amount”). To the extent the Maturity
Date is extended to any Extended Maturity Date, the required quarterly
principal payment set forth above shall continue to be due on each Principal
Payment Date.  The entire principal
balance of the T-Two Loan shall be due and payable in full on the Maturity Date
(or as may be applicable, any Extended Maturity Date).

 

(2)           NMLP.
Commencing on the first Principal Payment Date after receipt of the IPO Payment
and continuing on each Principal Payment Date thereafter, NMLP shall pay
principal in quarterly installments of the NMLP Post IPO Payment Amount. To the
extent the Maturity Date is extended to any Extended Maturity Date, the
required quarterly principal payment set forth above shall continue to be due
on each Principal Payment Date.  The
entire principal balance of the NMLP Loan shall be due and payable in

 

7

 

full on the Maturity Date (or as may be applicable, any Extended
Maturity Date).

 

(b)           NMLP
Mandatory Principal Repayments. 
Subject to Section 2.3.8(d) below, in addition to the scheduled payments
of principal, as provided above, NMLP shall make the following mandatory
prepayments of principal (singly and collectively, the “NMLP Mandatory
Principal Prepayments”), each of which shall be due and payable on the earlier
of (x) within five (5) Business Days of the event giving rise to such NMLP
Mandatory Principal Prepayment obligation (the “NMLP Mandatory Prepayment Event”)
or (y) within three (3) Business Days of written demand therefor by the Administrative
Agent; provided, however, at the request of NMLP, the
Administrative Agent agrees to hold the amount of any such NMLP Mandatory
Principal Prepayment in the NMLP Mandatory Principal Payment Account (as
defined in the Cash Management Agreement), pledged to the Administrative Agent
or the Deposit Account Co-Agent, on behalf of the Lenders, to secure the
repayment of the NMLP Obligations, until the earlier of (x) the expiration of
any relevant LIBOR Rate Interest Period so that the prepayment can be made
without NMLP incurring any costs under Section 2.3.15 or (y) ninety (90) days:

 

(i)            Except
for a transfer in connection with an Economic Discontinuance Sale, the
aggregate of (a) the Allocated Payment Amount for such Individual Property,
plus (b) seventy-five (75%) percent of the Net Sales Proceeds in excess of the
amount of the Allocated Payment Amount paid under subsection (a) as determined
in the reasonable judgment of  the
Administrative Agent, (x) received by any NMLP Partnership from the sale, transfer,
or other disposition of any Individual Property or any portion thereof or (y)
received by NMLP from the sale, transfer, dissolution, or other disposition of
the ownership interest in any NMLP Partnership; provided: if such
Individual Property secures a Securitized Note, the Allocated Payment Amount
required to be made under subsection (a) above shall be reduced by the amount
of T-Two Mandatory Principal Prepayment received under Section 2.3.8(c)(i) in
connection with such sale, transfer or other disposition;

 

(ii)           Except
for a transfer in connection with an Economic Discontinuance Sale, the
aggregate of (a) the Allocated Payment Amount for such Individual Property,
plus (b) seventy-five (75%) percent of the Net Sales Proceeds in excess of the
amount of the Allocated Payment Amount paid under subsection (a) as determined
in the reasonable judgment of the Administrative Agent, (x) distributed to any
limited partnership interest held by NMLP, any NMLP Subsidiary, or any other
Newkirk Group Entity from the sale, transfer, or other disposition of any
Individual Property or any portion thereof by a Other Partnership, Partially
Owned Limited Partnership, or Subsidiary Limited Partnership (based upon the
aggregate percentage limited partnership interest in such Other Partnership,
Partially Owned Limited Partnership, NMLP Subsidiary, and any other Newkirk
Group Entity) or (y) received by NMLP from the sale,

 

8

 

transfer, dissolution, or other disposition of the ownership interest
in any Other Partnership, Partially Owned Limited Partnership, or Subsidiary
Limited Partnership;

 

(iii)          One
hundred (100%) percent of the Net Refinancing Proceeds, as determined in the
reasonable judgment of the Administrative Agent, received by any NMLP
Partnership on account of any financing or refinancing of any Individual
Property; provided, if such Individual Property is the last or only
Securitized Property which secures a Securitized Note as to which the
Administrative Agent has not yet received Mandatory Principal Prepayments in an
amount equal to the aggregate Allocated Payment Amounts for such Individual
Properties, such NMLP Mandatory Principal Prepayment shall be the greater of
(A)  one hundred (100%) percent of the
Net Refinancing Proceeds or (B) the Shortfall Amount;

 

(iv)          One
hundred (100%) percent of the Net Refinancing Proceeds, as determined in the
reasonable judgment of the Administrative Agent, distributed to any limited
partnership interest held by NMLP, any NMLP Subsidiary, or any other Newkirk
Group Entity from the financing or refinancing of any Individual Property by a
Other Partnership, Partially Owned Limited Partnership, or Subsidiary Limited
Partnership (based upon the aggregate percentage limited partnership interest
in such Other Partnership, Partially Owned Limited Partnership, or Subsidiary
Limited Partnership owned by NMLP, any NMLP Subsidiary, and any other Newkirk
Group Entity);

 

(v)           One
hundred (100%) percent of the Net Sales Proceeds, as determined in the reasonable
judgment of the Administrative Agent, received by any NMLP Partnership from an
Economic Discontinuance Sale of any Individual Property or any portion thereof;

 

(vi)          One
hundred (100%) percent of the Net Sales Proceeds, as determined in the reasonable
judgment of the Administrative Agent, distributed to any limited partnership
interest held by NMLP, any NMLP Subsidiary, or any other Newkirk Group Entity
from an Economic Discontinuance Sale of any Individual Property or any portion
thereof by a Other Partnership, Partially Owned Limited Partnership, or
Subsidiary Limited Partnership (based upon the aggregate percentage limited
partnership interest in such Other Partnership, Partially Owned Limited
Partnership, or Subsidiary Limited Partnership owned by NMLP, any NMLP
Subsidiary, and any other Newkirk Group Entity);

 

(vii)         One
hundred (100%) percent of the Net Proceeds, as determined in the reasonable
judgment of the Administrative Agent, received by any NMLP Partnership from any
casualty or taking regarding any Individual Property or any portion thereof
which proceeds are not to be utilized within a reasonable period of time
following such event for the repair or reconstruction thereof;

 

9

 

(viii)        One
hundred (100%) percent of the Net Proceeds, as determined in the reasonable
judgment of the Administrative Agent, distributed to any limited partnership
interest held by NMLP, any NMLP Subsidiary or any other Newkirk Group Entity
from any casualty or taking regarding any Individual Property or any portion
thereof owned by a Other Partnership, Partially Owned Limited Partnership, or
Subsidiary Limited Partnership which proceeds are not to be utilized within a
reasonable period of time following such event for the repair or reconstruction
thereof (based upon the aggregate percentage limited partnership interest in
such Other Partnership or Partially Owned Limited Partnership owned by NMLP,
any NMLP Subsidiary, and any other Newkirk Group Entity);

 

(ix)           Seventy-five
(75%) percent of the Net Sales Proceeds, as determined in the reasonable
judgment of the Administrative Agent, received by NMLP or any wholly-owned NMLP
Subsidiary from the sale, transfer, or other disposition of any asset (other
than a sale of any Individual Property) of NMLP or any wholly owned Borrower
Subsidiary;

 

(x)            Seventy-five
(75%) percent of the Net Sales Proceeds, as determined in the reasonable
judgment of the Administrative Agent, distributed to any limited partnership,
membership or other ownership interest held by NMLP, any NMLP  Subsidiary, or any other Newkirk Group Entity
from the sale, transfer, or other disposition of any asset (other than a sale
of any Individual Property) of any  Other
Partnership or any Partially Owned Limited Partnership or any non wholly-owned
NMLP Subsidiary (based upon the aggregate percentage ownership interest in such
Other Partnership or Partially Owned Limited Partnership or non-wholly owned
Borrower Subsidiary owned by NMLP, any NMLP Subsidiary, and any other Newkirk
Group Entity);

 

(xi)           Upon
any rejection of a Rejectable Offer, one hundred (100%) percent of the Net
Sales Proceeds, as determined in the reasonable judgment of the Administrative
Agent, that would have been received by any NMLP Partnership if the Rejectable
Offer had been accepted;

 

(xii)          Upon
consummation of the IPO, the IPO Payment;

 

(xiii)         Unless
such termination is consented to by the Administrative Agent, upon the
termination of any Ground Lease or the failure to timely exercise any Remainder
Ground Lease Option (such that the subject remainderman interest in an
Individual Property expires), the Allocated Payment Amount for such Individual
Property;

 

(xiv)        Notwithstanding
the foregoing, if such sale, financing or other disposition involves an Acquired
Individual Asset, the NMLP Mandatory Principal Prepayment shall be determined
in the reasonable judgment of the Administrative Agent as follows:

 

10

 

(1)           First,
a payment in the amount equal to the Reinvestment Funds, if any, invested in
the Acquired Individual Asset by NMLP; and

 

(2)           Second,
the amount of the Mandatory Principal Payment, less the payment required by
subsection (1) above, that is otherwise payable as set forth above, provided
however, that in determining such payment, NMLP shall be entitled to receive a
return of the cash equity (exclusive of the amount of any Reinvestment Funds)
invested by NMLP in such Acquired Individual Asset, prior to calculating the
Net Proceeds, Net Sales Proceeds or Net Refinancing Proceeds, as applicable.

 

Any NMLP Mandatory Principal Prepayment shall be applied first to the
outstanding principal balance due under the NMLP Loan, and then to the
principal obligations  outstanding under
the NMLP T-Two Guaranty, if any, in each instance in inverse order of maturity.

 

(c)           T-Two
Mandatory Principal Repayments.  In
addition to the scheduled payments of principal, as provided above, T-Two shall
make the following mandatory prepayments of principal (singly and collectively,
the “T-Two Mandatory Principal Prepayments”), each of which shall be due and
payable on the earlier of (x) within five (5) Business Days of the event giving
rise to such T-Two Mandatory Principal Prepayment obligation (the “T-Two
Mandatory Prepayment Event”) or (y) within three (3) Business Days of written
demand therefor by the Administrative Agent; provided, however, at the request
of T-Two, the Administrative Agent agrees to hold the amount of any such T-Two
Mandatory Principal Prepayment in the T-Two Mandatory Principal Payment Account
(as defined in the Cash Management Agreement), pledged to the Administrative
Agent, on behalf of the Lenders, to secure the repayment of the T-Two
Obligations, until the earlier of (x) the expiration of any relevant LIBOR Rate
Interest Period so that the prepayment can be made without T-Two incurring any
costs under Section 2.3.15 or (y) ninety (90) days:

 

(i)            One
hundred (100%) percent of the amounts, as determined in the reasonable judgment
of the Administrative Agent, received by the Grantor Trust Trustee upon any
prepayment of principal or interest of any Securitized Note, whether voluntary
or involuntary, or arising from any sale (including any Economic Discontinuance
Sale), refinancing, casualty or condemnation loss or otherwise.

 

(ii)           One
hundred (100%) percent of the amounts, as determined in the reasonable judgment
of the Administrative Agent, received by T-Two, NK-CR Holdings LLC and/or
Holdings Subsidiary LLC on account of any payment or other consideration due
under the Call Option Agreement.

 

11

 

(iii)          One
hundred (100%) percent of any Balancing Amount as determined from time to time
in the reasonable judgment of the Administrative Agent.

 

Any T-Two Mandatory Principal Prepayment shall be applied first to the
outstanding principal balance due under the T-Two Loan, and then to the
principal obligations  outstanding under
the T-Two NMLP Guaranty, if any, in each instance in inverse order of maturity.

 

(d)           Reinvestment.  NMLP shall have the option to notify the
Administrative Agent that NMLP intends to hold for potential reinvestment in an
Acquired Individual Asset certain proceeds (the “Reinvestment Funds”) of a
capital event with respect to an Individual Property that would otherwise be
required to be the subject of a payment under Section 2.3.8(b) above.  In lieu of making the payment required by
Section 2.3.8(b) above, the Reinvestment Funds will be deposited in a
designated account with the Administrative Agent (the “Reinvestment Account”),
which account shall be pledged to the Administrative Agent, on behalf of the
Lenders, to be released to NMLP to provide funding for the acquisition of an
Acquired Individual Asset on the following conditions:

 

(i)            No
Default is then in existence;

 

(ii)           NMLP
shall provide the Administrative Agent with pro forma financial calculations
evidencing that after giving effect to the proposed investment of the
Reinvestment Funds and the resulting cash flow (and debt service, as applicable),
the pro forma Consolidated Debt Service Coverage shall be equal to or greater
than the coverage prior to the consummation of the capital event which produced
the Reinvestment Funds;

 

(iii)          NMLP
shall provide the Administrative Agent with pro forma financial calculations
evidencing that after giving effect to the proposed investment of the
Reinvestment Funds and any Debt to be incurred in connection therewith, as
applicable, the pro forma Consolidated Leverage Ratio shall be equal to or less
than the Consolidated Leverage Ratio prior to the consummation of the capital
event which produced the Reinvestment Funds.

 

(iv)          NMLP
shall comply with the provisions of Section 7.1.23 below with respect to the
acquisition of any such Acquired Individual Asset.

 

The total Reinvestment Funds in the Reinvestment Account shall at no
time exceed $30,000,000.00, and the Administrative Agent shall have the option,
in it is sole discretion, of applying any Reinvestment Funds on deposit in the
Reinvestment Account for a period in excess of ninety (90) days towards the
Mandatory Principal Prepayment that would have otherwise been made

 

12

 

Notwithstanding the above, upon the request of NMLP in the event of a
proposed tax free exchange in connection the sale of an Individual Property,
the Administrative Agent, in its sole discretion, may grant a waiver of the
foregoing limitations such that the subject Reinvestment Funds may be kept with
a third party intermediary consistent with the requirements of a tax free
exchange; provided, however, in connection therewith, the funds so held shall
continue to be Reinvestment Funds and any property purchased in such exchange
must be compliance with the requirements of Sections 7.1.23(j) and 8.1.25.

 

2.3.9     Prepayment.  Except for the payment of any applicable
Prepayment Fee, as hereinafter provided, the Loans or any portion thereof may
be prepaid in full or in part at any time upon fifteen (15) days prior written
notice from the respective Borrower to the Administrative Agent, without
premium or penalty with respect to Adjusted Prime Rate Advances and, with
respect to Adjusted LIBOR Rate Advances subject to the payment of any
additional amounts provided for in Section 2.3.15.  Any Mandatory Principal Prepayment and any
other partial prepayment of principal shall first be applied to the principal
due in the reverse order of maturity, and no such partial prepayment shall
relieve the subject Borrower of the obligation to pay each installment of
principal when due.  Any amounts prepaid
may not be reborrowed.

 

(a)           Each
Borrower shall pay the Administrative Agent on behalf of the Lenders (solely
with respect to any prepayment on the respective Loan of the subject Borrower)
a “Prepayment Fee” (so referred to herein) as follows, which Prepayment Fee
shall be due with respect to any prepayments in the aggregate as to both Loans:

 

(i)            with
respect to any and all prepayments made on or before August 11, 2006, the
subject Borrower shall pay a Prepayment Fee of one and one percent (1.0%) of
the principal amount so prepaid; and

 

(ii)           with
respect to any and all prepayments made after August 11, 2006, the Borrowers
shall not be required to pay any Prepayment Fee.

 

(b)           Any
applicable Prepayment Fee shall be payable in respect of all prepayments of
principal whether voluntary or involuntary including, without limitation,
prepayments made upon acceleration of the subject Loan; provided, however, no
Prepayment Fee shall be due in connection with (x) any Mandatory Principal Prepayments,
unless such payment is part of a related series of transactions to repay the
Loan in full or (y) any prepayments made from Excess Cash Flow.  If, by reason of an Event of Default,
Administrative Agent elects to declare either Loan to be immediately due and
payable, then any applicable Prepayment Fee with respect to the Loan shall
become due and payable in the same manner as though such Borrower had exercised
such right of prepayment.

 

2.3.10   Maturity.  At maturity all accrued interest, principal
and other charges due with respect to the Loans shall be due and payable in
full and the

 

13

 

principal balance and such other charges, but not unpaid interest,
shall bear interest at the Default Rate until so paid.

 

2.3.11   Method
of Payment; Date of Credit.  All
payments of interest, principal and fees shall be made in lawful money of the
United States in immediately available funds, without counterclaim or setoff
and free and clear of, and without any deduction or withholding for, any taxes
or other payments: (a) by direct charge to an account of each Borrower
maintained with Administrative Agent or the Deposit Account Co-Agent (or the
then holder of the Loans), (b) by wire transfer to Administrative Agent, (c) to
such other bank or address as the Administrative Agent may designate in a
written notice to the Borrowers, or (d) as provided in the Cash Management
Agreement.  Payments shall be credited on
the Business Day on which immediately available funds are received prior to ten
o’clock A.M. Eastern Time; payments received after ten o’clock A.M. Eastern
Time shall be credited to the Loan on the next Business Day.  Payments which are by check, which
Administrative Agent may at its option accept or reject, or which are not in
the form of immediately available funds shall not be credited to the Loan until
such funds become immediately available to Administrative Agent, and, with
respect to payments by check, such credit shall be provisional until the item
is finally paid by the payor bank.

 

2.3.12   Billings.  Administrative Agent may submit monthly
billings reflecting payments due to the applicable Borrower; however, any
changes in the interest rate which occur between the date of billing and the
due date may be reflected in the billing for a subsequent month.  Neither the failure of Administrative Agent
to submit a billing nor any error in any such billing shall excuse either
Borrower from the obligation to make full payment of such Borrower’s payment
obligations when due.

 

2.3.13   Default
Rate.  Administrative Agent shall
have the option of imposing, and shall impose at the direction of the Required
Lenders, and the subject Borrower shall pay upon billing therefor, an interest
rate which is four and one half percent (4.5%) per annum above the Adjusted
Prime Rate (“Default Rate”): (a) following the occurrence and during the
continuance of any Event of Default, and (b) after Maturity.  Each Borrower’s right to select pricing
options shall cease following and during the continuance of any Event of
Default.

 

2.3.14   Late
Charges.  Each Borrower shall pay
(solely with respect to such Borrower’s respective Loan), upon billing
therefor, a “Late Charge” equal to five percent (5%) of the amount of any
regularly scheduled payment of principal (other than principal due at Maturity
or any Mandatory Principal Prepayment), interest, or both, which is not paid
within ten (10) days of the due date thereof (other than with respect to any
payment as to which the said ten (10) day period expires after the
implementation of the Default Rate). 
Late charges are: (a) except as provided above, payable in addition to,
and not in limitation of, the Default Rate, (b) intended to compensate
Administrative Agent for administrative and processing costs incident to late
payments, (c) are not interest, and (d) shall not be subject to refund or
rebate or credited against any other amount due.

 

14

 

2.3.15   Prepayment
Costs.  Each Borrower shall pay to
Administrative Agent (solely with respect to such Borrower’s respective Loan),
immediately upon request and notwithstanding contrary provisions contained in
any of the Loan Documents, such amounts as shall, as determined in the
conclusive judgment of Administrative Agent (in the absence of manifest error),
compensate Administrative Agent and the Lenders for the loss, cost, expense, or
administrative cost, including the cost of re-employing funds bearing interest
at an Adjusted LIBOR Rate, which they have incurred or may reasonably incur as
a result of (i) any payment or prepayment, under any circumstances whatsoever,
whether voluntary or involuntary, of all or any portion of an Adjusted LIBOR
Rate Advance on a date other than the last day of the applicable Interest
Period of an Adjusted LIBOR Rate Advance, (ii) the conversion, for any reason
whatsoever, whether voluntary or involuntary, of any Adjusted LIBOR Rate
Advance to a Adjusted Prime Rate Advance on a date other than the last day of
the applicable Interest Period, (iii) the failure of all or a portion of a Loan
which was to have borne interest at the Adjusted LIBOR Rate pursuant to the
request of Borrower to be made under the Loan Agreement (except as a result of
a failure by any Lender to fulfill such Lender’s obligations to fund), or (iv)
the failure of such Borrower to borrow in accordance with any request submitted
by it for an Adjusted LIBOR Rate Advance (the “Breakage Costs”).

 

2.4           Loan Fees; Administrative Agent’s
Fees.

 

2.4.1     Administrative
Agent’s Fees.  The Borrowers shall
pay to the Administrative Agent for its own account an “Administrative Agent’s
Fee” in accordance with the written agreement between the Borrowers and the
Administrative Agent.

 

2.4.2     Extension
Fees. Each Borrower (solely with respect to such Borrower’s respective
Loan) shall pay to the Administrative Agent for the account of the Lenders “Extension
Fees” (so referred to herein) in amounts representing one quarter of one
percent (0.25%) of the then outstanding principal balance of the Loan at the
Maturity Date (and at the First Extended Maturity Date, as applicable), on each
occasion, in connection with such Borrower’s exercise of its extension rights,
and as a condition precedent to the effectiveness thereof, in each instance, as
provided in Section 2.6.

 

2.5           Acceleration.  The Administrative Agent may, and upon the
request of the Required Lenders shall, accelerate the applicable Loans, after
the occurrence and during the continuance of an Event of Default.  Upon such an acceleration, all principal,
accrued interest and costs and expenses shall be due and payable together with
interest on such principal at the Default Rate and any applicable Prepayment
Fee and any amounts due under Section 2.3.15.

 

2.6           Conditions to Extending Loan.  Upon satisfaction of each of the following
conditions, each Borrower may extend its respective Loan until the First
Extended Maturity Date, and thereafter, again upon satisfaction of each of the
following conditions, each Borrower may further extend its respective Loan
until the Second Extended Maturity Date:

 

15

 

2.6.1     No
Default.  No Default with respect to
such Borrower shall exist on the date of such Borrower’s written notice for an
extension as provided for below and on the Maturity Date (or as may be
applicable, the First Extended Maturity Date).

 

2.6.2     Notice
From Borrowers.  Such Borrower shall
have given Administrative Agent written notice of its request to exercise its
extension right at least forty-five (45) days, but no more than ninety (90)
days, before the Maturity Date (or as may be applicable, the First Extended
Maturity Date).

 

2.6.3     Covenant
Compliance.  No breach of any
covenants imposed upon such Borrower or Guarantor shall exist including, without
limitation, the Financial Covenants;

 

2.6.4     Exercise
of Remainder Ground Lease Options and Ground Lease Extension Options.  NMLP shall have, or shall have caused the
applicable NMLP Subsidiary to, timely duly exercise all Remainder Ground Lease
Options and Ground Lease Extension Options as to which the final date to
exercise such Remainder Ground Lease Options and Ground Lease Extension Options
is within thirteen months of the Maturity Date (or with respect to any
extension of the Loan for the Second Extended Term, within thirteen months of
the First Extended Maturity Date) (as of the Closing Date, the applicable
Remainder Ground Lease Options and Ground Lease Extension Options are listed on
Schedule 2.6.4);

 

2.6.5     Conditions
Satisfied.  All of the conditions set
forth in Section 5.1 or Section 5.2 of this Agreement, to the extent applicable
to the subject Loan being extended, shall continue to be satisfied;

 

2.6.6     Extension
Fee.  The Extension Fee of 0.25% of
the subject Loan being extended referred to in Section 2.4 shall have been paid
at least five (5) days prior to the Maturity Date (or as may be applicable, the
First Extended Maturity Date) and shall be returned to the subject Borrower if
the Loan is not extended for any reason;

 

2.6.7     Additional
Documents.  Each Borrower and
Guarantor shall have executed and delivered to Administrative Agent such
agreements and documents as Administrative Agent may reasonably require to
effectuate the extension, provided, however, none of said requested agreements
or documents shall provide for additional collateral or include any substantive
modification of the terms and provisions of the Loan Documents;

 

2.6.8     Interest
Rate Protection.  The applicable
Borrower shall have entered into an Interest Rate  Agreement, in an amount, from an issuer and
in form and substance reasonably acceptable to the Administrative Agent, with
respect to the subject Loan, which Interest Rate  Agreement shall be collaterally assigned to
the Administrative Agent, on behalf of the Lenders, to secure the Loan being
extended; and

 

16

 

2.6.9     Before
End of Term.  Each of the foregoing
conditions are satisfied not later than, and on, the Maturity Date (or as
applicable, the First Extended Maturity Date).

 

Within twenty (20) days following receipt by Administrative Agent of a
Borrower’s written notice under clause 2.6.2 above requesting the extension
accompanied by the items described in Section 2.6, Administrative Agent shall
notify the subject Borrower in writing if all of the conditions precedent to
the extension, other than payment of the extension fee, have been satisfied, or
if further information or documents set forth in Section 2.6 are required,
specifying such missing information or documents.  If Administrative Agent determines that the
conditions to extension have been satisfied (or if the Administrative Agent
notified the Borrower as provided above of any outstanding information or
documents required by this Section 2.6, specifying such missing information or
documents, and such Borrower provides outstanding information or documents
prior to ten (10) days before the Maturity Date (or as may be applicable, the
First Extended Maturity Date)), other than payment of the Extension Fee,
Administrative Agent shall so notify such Borrower and upon Administrative
Agent’s receipt of the Extension Fee not later than five (5) days prior to the
Maturity Date (or as may be applicable, the First Extended Maturity Date), so
long as no Default exists, the term of the subject Loan shall be extended until
the First Extended Maturity Date (or as may be applicable, the Second Extended
Maturity Date).

 

2.7           Additional Provisions Related to
Interest Rate Selection.

 

2.7.1     Increased
Costs. Each Borrower recognizes that the cost to any Lender of maintaining
the Loan or any portion thereof may fluctuate and, to the extent that such
Lender makes such determination generally with respect to similarly situated
borrowers, each Borrower agrees to pay to the Administrative Agent additional
amounts to compensate any such Lender for any increase in its actual costs
incurred in maintaining the Loan or any portion thereof outstanding or for the
reduction of any amounts received or receivable from a Borrower as a result of:

 

(a)           any
change after the date hereof in any applicable law, regulation or treaty, or in
the interpretation or administration thereof, or by any domestic or foreign
court, (A) changing the basis of taxation of payments under this Agreement to
any Lender (other than taxes imposed on all or any portion of the overall net
income or receipts of Lenders or franchise taxes), or (B) imposing, modifying
or applying any reserve, special deposit or similar requirement against assets
of, deposits with or for the account of, credit extended by, or any other
acquisition of funds for loans by any Lender (which includes the Loan or any
applicable portion thereof) (provided, however, that Borrower shall not be
charged again the Reserve Percentage already accounted for in the definition of
the Adjusted LIBOR Rate), or (C) imposing on any Lender, or the London
interbank market generally, any other condition affecting the Loan, provided
that the result of the foregoing is to increase the cost to any Lender of
maintaining the Loan or any portion thereof or to reduce the amount of any sum
received or receivable from a Borrower by any Lender under the Loan Documents;
or

 

17

 

(b)           the
maintenance by any Lender of reserves in accordance with reserve requirements
promulgated by the Board of Governors of the Federal Reserve System of the
United States with respect to “Eurocurrency Liabilities” of a similar term to
that of the applicable portion of the Loan (without duplication for reserves
already accounted for in the calculation of a LIBOR Rate pursuant to the terms
hereof).

 

So long as no Event of Default has occurred and is continuing, upon
written demand of Borrower, the Borrower may with thirty (30) days’ written
notice to the Administrative Agent, require any such Lender whose costs of
maintaining the Loan or any portion thereof has increased as provided for in
this Section 2.7.1 to sell and assign its entire interest in the Loan pursuant
to Section 13.3 hereof to any Eligible Assignee identified by the Borrower in
its demand and reasonably approved by the Administrative Agent, upon payment by
such Eligible Assignee of the entire par amount of such Lender’s interest in
the Loan and all accrued interest thereon, plus any compensation required to be
paid hereunder and any amounts provided for in Section 2.3.15, including,
without limitation, any applicable Breakage Costs and any other amounts payable
to such Lender.

 

2.7.2     Capital
Adequacy.  If the application of any
law, rule, regulation or guideline adopted or arising out of the report of the
Basle Committee on Banking Regulations and Supervisory Practices entitled “International
Convergence of Capital Measurement and Capital Standards”, or the adoption
after the date hereof of any other law, rule, regulation or guideline regarding
capital adequacy, or any change after the date hereof in any of the foregoing,
or in the interpretation or administration thereof by any domestic or foreign
Governmental Authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender, with any
request or directive regarding capital adequacy (whether or not having the
force of law) of any such authority, central bank or comparable agency, has the
effect of reducing the rate of return on such Lender’s capital to a level below
that which such Lender would have achieved but for such application, adoption,
change or compliance (taking into consideration the policies of such Lender
with respect to capital adequacy), then, to the extent that such Lender
requires such compensation generally with respect to similarly situated
borrowers, from time to time the Borrower shall pay to such Lender such
additional amounts as will compensate such Lender on an after-tax basis for
such reduction with respect to any portion of the Loan outstanding.  So long as no Event of Default has occurred
and is continuing, upon written demand of Borrower, the Borrower may with
thirty (30) days written notice to the Administrative Agent, require any such
Lender to whom compensation is due and payable by the Borrower as provided for
in this Section 2.7.2 to sell and assign its entire interest in the Loan
pursuant to Section 13.3 hereof to any Eligible Assignee identified by the
Borrower in its demand and reasonably approved by the Agent, upon payment by
such Eligible Assignee of the entire par amount of such Lender’s interest in
the Loan and all accrued interest thereon, plus any compensation required to be
paid hereunder and any amounts provided for in Section 2.3.15, including,
without limitation, any applicable Breakage Costs and all other amounts payable
to such Lender.

 

Any amount payable by Borrower under subsection 2.7.1 or 2.7.2 above
shall be paid within five (5) days of receipt by Borrower of a certificate
signed by an authorized officer of Administrative

 

18

 

Agent setting forth the amount due and the basis for the determination
of such amount, which statement shall be conclusive and binding upon Borrower,
absent manifest error.  Failure on the
part of Administrative Agent to demand payment from Borrower for any such
amount attributable to any particular period shall not constitute a waiver of
Lender’s right to demand payment of such amount for any subsequent or prior
period. Administrative Agent shall use reasonable efforts to deliver to
Borrower prompt notice of any event described in subsection 2.7.1 or 2.7.2
above, of the amount of the reserve and capital adequacy payments resulting therefrom
and the reasons therefor and of the basis of calculation of such amount; provided,
however, that any failure by Administrative Agent so to notify Borrower
shall not affect Borrower’s obligation to pay the reserve and capital adequacy
payment resulting therefrom.

 

2.7.3     Payments
Net of Taxes.

 

(a)           All
payments and prepayments of principal and interest under this Agreement shall
be made without withholding or deduction for or on account of any present or
future tax, assessment or other governmental charge (including penalties,
interest and other liabilities related thereto) imposed upon or as a result of
such payment by any political subdivision or taxing authority of any
jurisdiction in which each Borrower is organized or doing business (“Withholding
Taxes”) unless the withholding or deduction of such Withholding Taxes is
required by law.  In that event, the
subject Borrower will pay to the Administrative Agent such additional amounts
as may be necessary in order that every net payment made hereunder, after
deduction or withholding for or on account of any Withholding Taxes, will not
be less than the amount to be paid hereunder, except that no such additional
amounts shall be payable for or on account of any tax, assessment or other
governmental charge:

 

(i)            that
would not have been imposed but for the existence of any present or former
connection between the Administrative Agent or the applicable Lender and the
jurisdiction imposing such Withholding Taxes including, without limitation, the
Administrative Agent or the applicable Lender having engaged in a trade or
business therein, or having or having had a permanent establishment therein
(other than the mere ownership of a participation in the Loan or mere receipt
of payment under this Agreement);

 

(ii)           that
would not have been imposed but for the failure of the Administrative Agent or
the applicable Lender to comply with income tax laws and regulations of any
such jurisdiction or any political subdivision or taxing authority thereof or
therein, if such compliance is required to establish entitlement to an
exemption from such tax, assessment or other governmental charge;

 

(iii)          that
is based on the net income of the Administrative Agent or the applicable Lender
and would not have been imposed but for the mere ownership of a participation
in the Loan or the mere receipt of payment under this Agreement;

 

19

 

(iv)          to
which any person that is a transferee of the Administrative Agent or any Lender
is subject immediately following the transfer or to which such transferee will
become subject under a tax law, regulation or other legal pronouncement or
holding that has been enacted, issued or announced as of the date of the
transfer, in either case except to the extent that the transferor was or would
have become subject to such Withholding Taxes;

 

(v)           any
combination of (i), (ii), (iii) and (iv) above (the Withholding Taxes described
in clauses (i) through (iv) for which no additional amounts are payable, are
hereinafter referred to as (“Excluded Taxes”)).

 

(b)           Each
Lender organized under the laws of a jurisdiction outside of the United States
(a “Foreign Lender”) shall provide to each Borrower and the Administrative
Agent two properly completed and executed Internal Revenue Service Forms W-8BEN
or other applicable forms, certificates or documents prescribed by the Internal
Revenue Service of the United States certifying as to such Foreign Lender’s
entitlement to exemption from United States withholding tax under an applicable
statute or tax treaty with respect to payments to be made to such Foreign
Lender hereunder (“Certificates of Exemption”). 
Each Foreign Lender shall provide such Certificates of Exemption on or
before the Closing Date, and shall provide Certificates of Exemption on or
before the first business day of each taxable year of such Foreign Lender
thereafter.  Each Foreign Lender that
becomes a Lender pursuant to Section 13.3 after the Closing Date shall provide
Certificates of Exemption on or before the date such Foreign Lender becomes a
Lender and on or before the first business day of each taxable year of such
Foreign Lender thereafter.  Each Foreign
Lender further agrees to provide each Borrower and the Administrative Agent
with new Certificates of Exemption (x) upon the obsolescence of any letter,
form, certificate or document previously delivered by the Foreign  Lender to each Borrower and the
Administrative Agent hereunder or (y) promptly after the occurrence of any
event requiring a change in the status of the Foreign Lender or in any of the
other information provided on the most recent letter, form, certificate or
document previously delivered by the Foreign Lender to the Borrowers and the
Administrative Agent hereunder. If either Borrower shall provide written notice
to the Foreign Lender that new Certificates of Exemption are required, and if
the Foreign Lender does not submit them within (30) days following the receipt
of such notice and if the failure to do so increases the amount such Borrower
otherwise must pay to or on behalf of the Foreign Lender, then such Borrower is
relieved of the liability to pay the Foreign Lender the increased amount caused
solely by such Foreign Lender’s failure to provide such Certificates and shall
be permitted to deduct the increased withholding tax from the payment due to
such Foreign Lender.  Notwithstanding
anything to the contrary in this clause (iii), each Borrower will remain liable
to the Foreign Lender for all amounts not caused by such Foreign Lender’s
failure to provide new Certificates of Exemption.

 

20

 

(c)           Notwithstanding
the foregoing, if a Foreign Lender that originally provided Certificates of
Exemption indicating that such Foreign Lender was exempt from United States
withholding tax thereafter ceases to qualify for such exemption, each Borrower
shall be obligated for the payment of its allowable portion of all Withholding
Taxes resulting from such subsequent non-exemption, but the Borrowers shall
have the right to require such Foreign Lender to assign its pro rata share of the Loan (including its pro rata share of the interest accrued
thereon) to one or more Eligible Assignees identified by such Borrower at a
purchase price equal to the principal of and accrued but unpaid interest,
costs, and fees (to the date of purchase) on such Foreign Lender’s pro rata share of the Loan.  Until such Foreign Lender’s pro rata share of
the Loan is assigned to an Eligible Assignee, such Foreign Lender, if eligible
for a partial exemption from or a reduction in the rate of United States
withholding tax under an applicable statute or tax treaty with respect to
payments to be made to such Foreign Lender hereunder, shall provide to each
Borrower and the Administrative Agent two properly completed and executed
Internal Revenue Service Forms W-8BEN or other applicable forms, certificates
or documents prescribed by the Internal Revenue Service of the United States
certifying as to such Foreign Lender’s entitlement to said partial exemption or
reduction (“Certificates of Partial Exemption”), and the provisions of (iii)
above shall continue to apply to such Foreign Lender substituting the words “Certificates
of Partial Exemption” for “Certificates of Exemption” in (iii) above.

 

2.7.4     Adjusted
Prime Rate Advances.  Each Adjusted
Prime Rate Advance shall continue as a Adjusted Prime Rate Advance until
Maturity of the Loan, unless sooner converted, in whole or in part, to an
Adjusted LIBOR Rate Advance, subject to the limitations and conditions set
forth in this Agreement.

 

2.8           Interest Rate Agreements.

 

2.8.1     Any
indebtedness incurred pursuant to an Interest Rate Agreement entered into by a
Borrower and the Administrative Agent shall constitute indebtedness evidenced
by the Note and secured by the other Loan Documents to the same extent and
effect as if the terms and provisions of such Interest Rate Agreement were set
forth herein, whether or not the aggregate of such indebtedness, together with
the disbursements made by Lenders of the proceeds of the Loan, shall exceed the
face amount of the Note.

 

2.8.2     Each
Borrower hereby collaterally assigns to Administrative Agent for the benefit of
Lenders any and all Interest Rate Agreement purchased or to be purchased by
Borrower in connection with the Loan, as additional security for the Loan, and
agrees to provide Lenders with any additional documentation reasonably
requested by Lenders in order to confirm or perfect such security interest
during the term of the Loan.  If a
Borrower obtains an Interest Rate Agreement from a party other than
Administrative Agent, Borrower shall deliver to Lenders such third party’s
consent to such collateral assignment. 
No Interest Rate Agreement purchased from a third party may be secured
by an interest in either Borrower or the Collateral.

 

21

 

2.8.3     Borrower
shall, as a condition to the opening of the Loan, institute an interest rate
hedging program through the purchase of an Interest Rate Agreement with respect
to $250,000,000.00 of the Loan, to be apportioned between the NMLP Loan and the
T-Two Loan by the Administrative Agent in its reasonable discretion.  The Interest Rate Agreement, and the
financial institution providing the Interest Rate Agreement, shall be subject
to Administrative Agent’s prior written approval in its reasonable
discretion.  Borrower shall afford
Administrative Agent a right of first opportunity to provide all Interest Rate
Agreement but shall not be required to purchase such Interest Rate Agreement
from Administrative Agent or any Lender.

 

ARTICLE 3

SECURITY FOR THE LOANS; LOAN AND SECURITY DOCUMENTS.

 

3.1           Security for NMLP Loan.  The NMLP Loan, together with interest thereon
and all other charges and amounts payable by, and all other NMLP Obligations
of, NMLP and the other NMLP Loan Parties to the Administrative Agent and/or
each of the Lenders, shall be secured by the following collateral (the “NMLP
Collateral”) which NMLP agrees to provide and maintain, or cause to be provided
and maintained (whether provided for each in separate agreements or combined
with various other agreements):

 

3.1.1     Security
Agreement.  A first priority security
agreement and collateral assignment granted by NMLP to the Administrative
Agent, on behalf of the Lenders, respecting all assets of NMLP, whether now
owned, now due, or in which NMLP has an interest, or hereafter, at any time in
the future, acquired, arising, to become due, or in which NMLP obtains an
interest (other than the assets pledged to the Integrated Group as provided for
in the Integrated Documents), including, without limitation, all of NMLP’s
right, title, and interest to and in the Call Option Agreement.

 

3.1.2     NMLP
Ownership Interest Pledge and Security Agreements.

 

(a)           First
priority Ownership Interest Pledge and Security Agreements granted by NMLP to
the Administrative Agent, on behalf of the Lenders, with respect to all right,
title, and interest of NMLP to and in each of the following:

 

(i)            NMLP’s
100% limited partnership interests in each of the NMLP Partnerships, as of the
Funding Date to be as set forth in Exhibit M annexed hereto;

 

(ii)           NMLP’s
100% membership interest in Newkirk GP Holding LLC;

 

(iii)          NMLP’s
100% membership interest in NK-Remainder Interest LLC;

 

(iv)          NMLP’s
100% membership interest in NK-Leyden GP LLC;

 

22

 

(v)           NMLP’s
97.753% limited partnership interest in NK-Leyden Loan L.P.;

 

(vi)          NMLP’s
100% membership interest in NK-Dautec GP LLC;

 

(vii)         NMLP’s
97.297% limited partnership interest in NK-Dautec Loan, L.P.;

 

(viii)        NMLP’s
100% membership interest in NK First Loan E Cert LLC;

 

(ix)           NMLP’s
100% membership interest in NK First Loan F Cert LLC;

 

(x)            NMLP’s
100% membership interest in NK First Loan G Cert LLC;

 

(xi)           NMLP’s
100% membership interest in Newkirk MLP Unit LLC; and

 

(xii)          NMLP’s
100% ownership interest in MLP Manager Corp.

 

(b)           Ownership
Interest Pledge and Security Agreements granted by NMLP to the Administrative
Agent, on behalf of the Lenders, with respect to all right, title, and interest
of NMLP to and in each of the following, such security interests to be
effective upon the earliest of (x) the repayment in full of the Integrated
Obligations; (y) the release of the lien held by the Integrated Group in any of
the following ownership interests; or (z) the acceleration of the Obligations
as a result of an Event of Default and the election by the Administrative Agent
to vest and perfect such security interests, each as determined by the
Administrative Agent:

 

(i)            NMLP’s
100% membership interest in Newkirk Finco LLC;

 

(ii)           NMLP’s
50.01% membership interest in Newkirk Capital LLC; and

 

(iii)          NMLP’s
100% membership interest in Newkirk GP LLC.

 

3.1.3     Depository
Account Pledge and Security Agreements.

 

(a)           A
first priority Depository Account Pledge and Security Agreement granted by
NMLP, NK-Remainder Interest LLC, NK-Leyden GP LLC, NK-Dautec GP LLC, NK-First
Loan E Cert LLC, NK-First Loan F Cert LLC, NK-First Loan G Cert LLC, Newkirk
MLP Unit LLC, MLP Manager Corp., Newkirk GP Holding LLC and each Guaranty
Partnership to the Administrative Agent and the Deposit Account Co-Agent, on
behalf of the Lenders, respecting all NMLP Accounts and the T/I Fund Account maintained
by such Persons at the

 

23

 

Deposit Account Co-Agent, the Administrative Agent or another Account
Institution (as defined in the Cash Management Agreement).

 

(b)           A
Depository Account Pledge and Security Agreement granted by Newkirk GP LLC and
Newkirk Finco LLC to the Administrative Agent and the Deposit Account Co-Agent,
on behalf of the Lenders, respecting all NMLP Accounts maintained by such NMLP
Subsidiaries at the Deposit Account Co-Agent, the Administrative Agent or
another Account Institution (as defined in the Cash Management Agreement), such
security interests to be effective upon the earliest of (x) the repayment in
full of the Integrated Obligations; (y) the release of the lien held by the
Integrated Group in the ownership interests of Newkirk GP LLC or Newkirk Finco
LLC, or (z) the acceleration of the Obligations as a result of an Event of
Default and the election by the Administrative Agent to vest and perfect such
security interests, each as determined by Administrative Agent (the Depository
Account Pledge and Security Agreements referred to in clauses (i) and (ii),
singly and collectively the “NMLP Depository Account Pledge and Security
Agreement”).

 

3.1.4     Collateral
Assignment of Interest Rate Agreement. 
A first priority Collateral Assignment of Protected Interest Rate
Agreement granted by NMLP to the Administrative Agent, on behalf of the
Lenders, respecting the Interest Rate Agreement entered into with respect to
the NMLP Loan.

 

3.1.5     Collateral
Assignment of Call Option Agreement. 
A first priority Collateral Assignment of all of NMLP’s right, title,
and interest to and in the Call Option Agreement.  T-Two, NK-CR Holdings LLC and Holding
Subsidiary LLC shall each join in the Collateral Assignment for the purpose of
consenting thereto and being bound by the provisions thereof.

 

3.1.6     NMLP
Subsidiaries and NMLP Loan Parties Security Agreements.

 

(a)           A
first priority security agreement granted by Newkirk MLP Unit LLC, NK-Leyden GP
LLC, NK-Dautec GP LLC, MLP Manager Corp., NK-Remainder Interest LLC, and each
Guaranty Partnership and Guaranty Partnership GP to the Administrative Agent,
on behalf of the Lenders, respecting all the assets of each such Person,
whether now owned, now due, or in which such Person has an interest, or
hereafter, at any time in the future, acquired, arising, to become due, or in
which such Person obtains an interest.

 

(b)           A
security agreement granted by Newkirk GP LLC and Newkirk Finco LLC to the
Administrative Agent, on behalf of the Lenders, respecting all the assets of
each of such NMLP Subsidiaries, whether now owned, now due, or in which such
NMLP Subsidiaries have an interest, or hereafter, at any time in the future,
acquired, arising, to become due, or in which such NMLP Subsidiaries obtain an
interest, such security interests to be effective upon the earliest of (x) the
repayment in full of the Integrated Obligations; (y) the release of the lien
held by the Integrated Group in the ownership interests of Newkirk GP LLC, or
Newkirk Finco LLC, or (z) the acceleration of the Obligations as a result of an

 

24

 

Event of Default and the election by the Administrative Agent to vest
and perfect such security interests, each as determined by Administrative
Agent.

 

3.1.7     NMLP
Partnership GPs Ownership Interest Pledge and Security Agreement.  A first priority Ownership Interest Pledge
and Security Agreement granted by each of the NMLP Partnership GPs, as to which
the applicable NMLP Partnership is not a GMAC Borrower, to the Administrative
Agent, on behalf of the Lenders, with respect to all right, title, and interest
of such NMLP Partnership GPs to and in the general partner’s interest in each
NMLP Partnership, respectively.

 

3.1.8     Newkirk
GP LLC Ownership Interest Pledge and Security Agreement. An Ownership
Interest Pledge and Security Agreement granted by Newkirk GP LLC to the
Administrative Agent, on behalf of the Lenders, with respect to all right,
title, and interest of Newkirk GP LLC to and in its 100% ownership interest to
and in Chader Manager LLC, such security interest to be effective upon the
earliest of (x) the repayment in full of the Integrated Obligations; (y) the
release of the lien held by the Integrated Group in the said ownership
interests; or (z) the acceleration of the Obligations as a result of an Event
of Default and the election by the Administrative Agent to vest and perfect
such security interest, each as determined by Administrative Agent.

 

3.1.9     Newkirk
GP Holding LLC Ownership Interest Pledge and Security Agreement.  An Ownership Interest Pledge and Security
Agreement granted by Newkirk GP Holding LLC to the Administrative Agent, on
behalf of the Lenders, with respect to all right, title, and interest of
Newkirk GP Holding LLC to and in its 100% ownership interest in each of the
NMLP Partnership GPs, as to which the applicable NMLP Partnership is not a GMAC
Borrower.

 

3.1.10   Collateral
Assignment by Newkirk Finco LLC of Administrator LLC Loan.  A Collateral Assignment of Loan Documents
respecting the Administrator LLC Loan granted by Newkirk Finco LLC to the
Administrative Agent, on behalf of the Lenders, with respect to all right,
title, and interest of Newkirk Finco LLC to and in the Administrator LLC
Loan.  Included as part of the Collateral
Assignment of Loan Documents of the Administrator LLC Loan, Newkirk Finco LLC
shall endorse the original Administrator LLC Note payable to Administrative
Agent and deliver same to Administrative Agent, such security interests to be
effective upon the earliest of (x) the repayment in full of the Integrated
Obligations; (y) the release of the lien held by the Integrated Group in the
ownership interest of Newkirk Finco LLC, or (z) the acceleration of the
Obligations as a result of an Event of Default and the election by the
Administrative Agent to vest and perfect such security interests, each as
determined by Administrative Agent.

 

3.1.11   Newkirk
MLP Unit LLC Ownership Interest Pledge and Security Agreement.  A first priority Ownership Interest Pledge
and Security Agreement granted by Newkirk MLP Unit LLC to the Administrative
Agent, on behalf of the Lenders, with respect to all right, title, and interest
of Newkirk MLP Unit

 

25

 

LLC to and in the limited partnership interests in Other Partnerships,
as of the Funding Date to be as set forth in Exhibit L annexed hereto.

 

3.1.12   Pledge
of Ownership Interest in NK-Leyden Loan, L.P.  A first priority Ownership Interest Pledge
and Security Agreement granted by NK-Leyden GP LLC to the Administrative Agent,
on behalf of the Lenders, with respect to all right, title, and interest of the
100% general partnership interest of NK-Leyden GP LLC to and in NK-Leyden Loan
L.P. (as the owner of the Leyden Note).

 

3.1.13   Pledge
of Ownership Interest in Subsidiary Limited Partnerships.  A first priority Ownership Interest Pledge
and Security Agreement granted by Newkirk Martall L.P. to the Administrative
Agent, on behalf of the Lenders, with respect to all right, title, and interest
of the 99% limited partnership interest of Newkirk Martall L.P. to and in the
Subsidiary Limited Partnerships.

 

3.1.14   Pledge
of Ownership Interest in NK-Dautec Loan, L.P.  A first priority Ownership Interest Pledge
and Security Agreement granted by NK-Dautec GP LLC to the Administrative Agent,
on behalf of the Lenders, with respect to all right, title, and interest of the
100% general partnership interest of NK-Dautec GP LLC to and in NK-Dautec Loan,
L.P. (as the owner of the Dautec Note).

 

3.1.15   Collateral
Assignment of Tustin Loan.  A first
priority Collateral Assignment of Loan Documents respecting the Tustin Loan
granted by NMLP to the Administrative Agent, on behalf of the Lenders, with
respect to all of NMLP’s right, title, and interest to and in the Tustin
Loan.  Included as part of the Collateral
Assignment of Loan Documents, NMLP shall endorse the original Tustin Note
payable to Administrative Agent and deliver same to Administrative Agent, and
NMLP shall execute and deliver an Assignment of the mortgage included in the
Tustin Loan Documents to Administrative Agent in recordable form.

 

3.1.16   Pledge
of Ownership Interest in T-Two Partners, L.P.  A first priority Ownership Interest Pledge
and Security Agreement granted by NK-CR Holdings LLC and Holding Subsidiary LLC
to the Administrative Agent, on behalf of the Lenders, with respect to all
right, title, and interest of the 100% limited partnership interest of NK-CR
Holdings LLC and the 100% general partnership interest of Holding Subsidiary
LLC, respectively, to and in T-Two Partners, L.P.

 

3.1.17   Pledge
of Ownership Interest in Holding Subsidiary LLC.  A first priority Ownership Interest Pledge
and Security Agreement granted by NK-CR Holdings LLC and NK-CR Corp. to the
Administrative Agent, on behalf of the Lenders, with respect to all right,
title, and interest of the 99.8% membership interest of NK-CR Holdings LLC and
the 0.20% membership interest of NK-CR Corp., respectively, to and in Holding
Subsidiary LLC. 

 

26

 

3.1.18          Pledge of Ownership
Interest in NK-CR Corp. A first priority Ownership Interest Pledge and
Security Agreement granted by NK-CR Holdings LLC to the Administrative Agent,
on behalf of the Lenders, with respect to all right, title, and interest of the
100% stock ownership interest of NK-CR Holdings LLC to and in NK-CR Corp.

 

3.1.19          Pledge of Ownership
Interest in NK-CR Holdings LLC. A first priority Ownership Interest Pledge
and Security Agreement granted by Newkirk Stock LLC to the Administrative Agent,
on behalf of the Lenders, with respect to all right, title, and interest of the
100% membership interest of Newkirk Stock LLC to and in NK-CR Holdings LLC.

 

3.1.20          Pledge of Ownership
Interest in Newkirk Stock LLC.  A
first priority Ownership Interest Pledge and Security Agreement granted by
Newkirk NL Holdings LLC and VNK L.L.C. to the Administrative Agent, on behalf
of the Lenders,  with
respect to all right, title, and interest of the 100% membership interests of
Newkirk NL Holdings LLC and VNK L.L.C. to and in Newkirk Stock LLC.

 

3.1.21          Pledge of Ownership
Interest by MLP GP LLC of General Partnership Interest in NMLP.  A first priority Ownership Interest Pledge
and Security Agreement granted by MLP GP LLC to the Administrative Agent, on
behalf of the Lenders, with respect to all right, title, and interest of MLP GP
LLC with respect to its 100% general partnership interest to and in the NMLP.

 

3.1.22          Pledge of Ownership
Interest in MLP GP LLC. A first priority Ownership Interest Pledge and
Security Agreement granted by the MLP Holders to the Administrative Agent, on
behalf of the Lenders, with respect to all right, title, and interest of such
Persons to and in the 100% membership interest in MLP GP LLC.

 

3.1.23          Newkirk
Indemnification.  An indemnification
agreement (the “Newkirk Indemnification”) from the Newkirk Indemnitor in favor
of the Administrative Agent and each of the Lenders concerning any and all loss
or damage occasioned or otherwise suffered by the Administrative Agent and/or
the Lenders resulting in any way from any claim, action, demand, or liability
asserted (whether or not suit is instituted) by, or related to, the obligations
of the Newkirk Group Entities to, or collateral held by, the Integrated Group
as set forth in such Agreement.

 

3.1.24          Guaranties.

 

(a)                                  The
unconditional, continuing guaranty from each NMLP Guarantor (except for Newkirk
GP LLC and Newkirk Finco LLC), pursuant to which each NMLP Guarantor shall
guaranty the prompt, punctual, and faithful payment of the NMLP Loan and the
performance of all other NMLP Obligations to the Administrative Agent and each
of the Lenders under the NMLP Loan Documents; provided, however,
that any particular Guaranty may be on a non-recourse

 

27

 

basis as, and only to the
extent, specifically approved by the Administrative Agent and provided in any
such Guaranty.

 

(b)                                 The
unconditional, continuing guaranty from Newkirk GP LLC and Newkirk Finco LLC
pursuant to which each such NMLP Guarantor shall guaranty the prompt, punctual,
and faithful payment of the NMLP Loan and the performance of all other NMLP
Obligations to the Administrative Agent and each of the Lenders under the NMLP
Loan Documents, such guaranty to be effective upon the earliest of (x) the
repayment in full of the Integrated Obligations; (y) the release of the lien
held by the Integrated Group in the ownership interests of Newkirk GP LLC or
Newkirk Finco LLC, or (z)  the
acceleration of the NMLP Obligations as a result of an Event of Default and the
election by the Administrative Agent to cause the guaranty to be in full force
and effect, each as determined by Administrative Agent (the guaranties referred
to in clauses (i) and (ii), singly and collectively the “NMLP Guaranty”).

 

3.1.25          Environmental
Compliance and Indemnification Agreement. 
A compliance and indemnification agreement with respect to environmental
matters (“Environmental Indemnity”) from NMLP and each Guaranty Partnership in
favor of the Administrative Agent and each of the Lenders.

 

3.1.26          Escrow Agreement
Respecting Ground Lease Extensions and Lease Options.  An escrow agreement (“Escrow Agreement
Respecting Ground Lease Extensions and Lease Options”) pursuant to which the
NMLP and the NMLP Partnerships, respectively and as applicable, execute and
deliver in escrow to the Administrative Agent, on behalf of the Lenders,
executed notices and such other documents and agreements required to exercise
all extensions and other rights respecting the following, as determined in the
reasonable judgment of the Administrative Agent.

 

(a)                                  Those
ground lease options (singly and collectively the “Remainder Ground Lease
Options”) relating to the respective remainderman interests held by
NK-Remainder Interest LLC or any third party, as detailed on Schedule 2.6.4;
and

 

(b)                                 Those
lease extension options (singly and collectively, the “Ground Lease Extension
Options”) relating to all ground lessor interests held by NK-Remainder Interest
LLC or any third party, as detailed on Schedule 2.6.4, whether with
respect to a Ground Lease in effect as of the date hereof and any other Ground
Lease which may be entered into hereafter, including any Ground Lease entered
into in connection with the exercise of a Remainder Ground Lease Option.

 

3.1.27          Mortgages/Deeds of
Trust; Collateral Assignments of Leases and Rents.  A mortgage/deed of trust and security
agreement and a collateral assignment of leases and rents granted by each
Mortgage Partnership to the Administrative Agent, on behalf of the Lenders, on:
(i) each Mortgage Partnership’s fee or leasehold interest in the
Individual Property owned by such Mortgage Partnership; (ii) each Mortgage
Partnership’s interest in all land,

 

28

 

improvements, furniture, fixtures,
equipment, and other assets (including, without limitation, contracts, contract
rights, accounts, Licenses and Permits and general intangibles), including all
after-acquired property, owned by, or in which each Mortgage Partnership has or
obtains any interest, in connection with the Individual Property; (iii) all
insurance proceeds and other proceeds therefrom; and (iv) all other assets
of each Mortgage Partnership, whether now owned or hereafter acquired and
related to the Individual Property. 
Notwithstanding that certain of the said mortgages/deeds of trust and
collateral assignments of leases and rents may secure an agreed portion of the
NMLP Obligations, no such mortgage/deed of trust or collateral assignment of
leases and rents shall be released until the earlier of (i) the payment in
full of the NMLP Obligations or (ii) the sale or transfer of the subject
Individual Property in accordance with either Section 8.1.3(f) or Section 8.1.3(g).

 

3.1.28          Additional Documents.  Any other documents, instruments and
agreements with respect to the NMLP Loan as set forth on the Loan Agenda.

 

3.2                                 NMLP
Loan Documents and NMLP Security Documents. 
The NMLP Loan shall be made, evidenced, administered, secured and
governed by all of the terms, conditions and provisions of the “NMLP Loan
Documents”, each as the same may be hereafter modified or amended, consisting
of: (i) this Loan Agreement; (ii) a promissory note in the form of Exhibit C-1,
annexed hereto, payable by NMLP to the Administrative Agent on behalf of the Lenders
in the original principal amount of up to Four Hundred Seventy-Seven Million,
Seven Hundred Fifty-Nine Thousand, Four Hundred Forty-Five Dollars ($477,759,445.00) (the “NMLP Note”); (iii) the
various documents and agreements referenced in Section 3.1, above; (iv) any
Consents or NMLP Payment Direction Letters executed by any NMLP Subsidiary or
Newkirk Group Entity; (v) the Interest Rate Agreement; (vi) the Cash
Management Agreement; and (vii) any other documents, instruments, or
agreements heretofore or hereafter executed to further evidence or secure the
NMLP Loan.

 

Each of the NMLP Loan Documents listed above is dated as of the date
hereof.  The NMLP Loan Documents
referenced in Section 3.1 (except Section 3.1.28) are sometimes
referred to herein, singly and collectively as the “NMLP Security Documents”.

 

3.3                                 Security
for T-Two Loan.  The T-Two Loan,
together with interest thereon and all other charges and amounts payable by,
and all other T-Two Obligations of, T-Two and the other T-Two Loan Parties to
the Administrative Agent and/or each of the Lenders shall be secured by the
following collateral (the “T-Two Collateral”) which T-Two agrees to provide and
maintain, or cause to be provided and maintained (whether provided for each in
separate agreements or combined with various other agreements):

 

3.3.1                Security
Agreement.  A first priority security
agreement and collateral assignment granted by T-Two to the Administrative
Agent, on behalf of the Lenders, respecting all assets of T-Two, whether now
owned, now due, or in which T-Two has an interest, or hereafter, at any time in
the future, acquired, arising, to become due, or in which T-Two obtains an
interest, including, without limitation, all of T-Two’s right, title, and
interest to and in the Call Option Agreement, the Grantor Trust T-1
Certificate, the Grantor Trust T-2 Certificate and the Intercompany Loan.

 

29

 

3.3.2                Collateral
Assignment of Beneficial Interest in Grantor Trust.  A first priority pledge and collateral
assignment granted by T-Two to the Administrative Agent, on behalf of the
Lenders, of all of T-Two’s right, title, and interest to and in the Grantor
Trust, the Securitized Notes, the Securitized Mortgages and the other
Securitization Documents.

 

3.3.3                Collateral
Assignment of Intercompany Loan.  A
first priority pledge and collateral assignment granted by T-Two to the Administrative
Agent, on behalf of the Lenders, of all of T-Two’s right, title, and interest
to and in the Intercompany Loan and all documents evidencing the Intercompany
Loan.

 

3.3.4                Depository
Account Pledge and Security Agreement. 
A first priority Depository Account Pledge and Security Agreement
granted by T-Two to the Administrative Agent and the Deposit Account Co-Agent,
on behalf of the Lenders, respecting all Accounts maintained by T-Two at the Deposit
Account Co-Agent, the Administrative Agent or another Account Institution (as
defined in the Cash Management Agreement), including, without limitation, the
T-Two Cash Collateral Account (the “T-Two Depository Account Pledge and
Security Agreement”).

 

3.3.5                Guaranties.  The unconditional, continuing guaranty from
each T-Two Guarantor, pursuant to which each T-Two Guarantor shall guaranty the
prompt, punctual, and faithful payment of the T-Two Loan and the performance of
all other T-Two Obligations to the Administrative Agent and each of the Lenders
under the T-Two Loan Documents; provided, however, that any particular Guaranty
may be on a non-recourse basis as, and only to the extent, specifically
approved by the Administrative Agent and provided in any such Guaranty
(collectively, the “T-Two Guaranty”).

 

3.3.6                Collateral
Assignment of Interest Rate Agreement.  A first priority Assignment of Interest Rate
Agreement granted by T-Two to the Administrative Agent, on behalf of the
Lenders, respecting the Interest Rate Agreement entered into with respect to
the T-Two Loan.

 

3.3.7                Additional
Documents.  Any other documents,
instruments and agreements with respect to the T-Two Loan as set forth on the
Loan Agenda.

 

3.4                                 T-Two
Loan Documents and T-Two Security Documents.  The T-Two Loan shall be made, evidenced,
administered, secured and governed by all of the terms, conditions and
provisions of the “T-Two Loan Documents”, each as the same may be hereafter
modified or amended, consisting of: (i) this Loan Agreement; (ii) a
promissory note in the form of Exhibit C-2, annexed hereto, payable
by T-Two to the Administrative Agent on behalf of the Lenders in the
original  principal amount of up to Two
Hundred Seventy-Two Million, Two Hundred Forty Thousand, Five Hundred
Fifty-Five Dollars ($272,240,555.00)(the
“T-Two Note”); (iii) the various documents and agreements referenced in Section 3.3,
above; (iv) any Consents or T-Two Payment Direction Letters executed by
T-Two, the Grantor Trustee or any other Person; (v) the Interest Rate  Agreement if issued by the Administrative
Agent; (vi) the Cash Management Agreement; and (vii) any other
documents, instruments, or agreements heretofore or hereafter executed to
further evidence or secure the T-Two Loan.

 

30

 

Each of the T-Two Loan Documents listed above is dated as of the date
hereof.  The T-Two Loan Documents
referenced in Section 3.3 (except 3.3.7) are sometimes referred to herein,
singly and collectively as the “T-Two Security Documents”.

 

ARTICLE 4

CONTINUING AUTHORITY OF AUTHORIZED REPRESENTATIVES

 

Administrative Agent and each of the Lenders are authorized to rely
upon the continuing authority of the persons, officers, signatories or agents
hereafter designated (“Authorized Representatives”) to bind each Borrower with
respect to all matters pertaining to the Loan and the Loan Documents including,
but not limited to, the selection of interest rates, the submission of the
request for the Loan Advance and certificates with regard thereto.  Such authorization may be changed only upon
written notice to Administrative Agent accompanied by evidence, reasonably
satisfactory to Administrative Agent, of the authority of the person giving
such notice.  The present Authorized
Representatives as to each Borrower are listed on Exhibit D.  The Administrative Agent shall have a right
of approval, not to be unreasonably withheld or delayed, over the identity of
the Authorized Representatives so as to assure Administrative Agent and each of
the Lenders that each Authorized Representative is a responsible and senior
official of such Borrower.

 

ARTICLE 5

CONDITIONS PRECEDENT.

 

5.1                                 Closing
NMLP Loan and Funding NMLP Loan Advance. 
It shall be a condition precedent of Lenders’ obligation to close the
NMLP Loan and to fund the proceeds of the NMLP Loan (the “NMLP Loan Advance”)
that each of the following conditions precedent be satisfied in full (as
determined by each Lender in its discretion which discretion shall be exercised
in good faith having due regard for the advice of the Administrative Agent),
unless specifically waived in writing by all of the Lenders at or prior to the
date of the funding of the NMLP Loan Advance (the date of the closing of the
NMLP Loan and the T-Two Loan shall be referred to herein as the “Closing Date”
and the date of the initial funding of the NMLP Loan and the T-Two Loan shall
be referred to herein as the “Funding Date”):

 

5.1.1                Satisfactory
NMLP Loan Documents and Related Documents; Loan Agenda Items.  On the Funding Date, each of the NMLP Loan
Documents and the Related Documents shall be satisfactory in form, content and
manner of execution and delivery to Administrative Agent and Administrative
Agent’s counsel and all NMLP Loan Documents and Related Documents shall be in
full force and effect.  Without limiting
the foregoing, the Administrative Agent shall have received each of the
instruments, documents, and agreements itemized on the Loan Agenda, each
executed and delivered in favor of, and/or in form and substance reasonably
satisfactory to, the Administrative Agent.

 

5.1.2                Financial
Information; No Material Change.

 

(a)                                  No
change shall have occurred in the financial condition, business, affairs,
operations or control of NMLP, the NMLP Loan Parties, and/or the

 

31

 

NMLP Subsidiaries, since the
date of their respective financial statements or financial projections most
recently delivered to Administrative Agent, which change has had or could
reasonably be expected to have a Material Adverse Effect; and NMLP and the
other NMLP Loan Parties shall have furnished Administrative Agent such other
financial information, projections, and certifications as reasonably requested
by the Administrative Agent.

 

(b)                                 The
absence of any material adverse change in the loan syndication, financial or
capital market conditions generally from those currently in effect.

 

(c)                                  NMLP
shall have provided to the Administrative Agent a copy certified by an officer
of NMLP of its balance sheet after giving effect to the NMLP Loan, to evidence
that NMLP is solvent, has assets having a fair value in excess of the amount
required to pay NMLP’s probable liabilities on NMLP’s existing Debts as such
become absolute and mature, and has adequate capital for the conduct of NMLP’s
business and the ability to pay NMLP’s Debts from time to time incurred in
connection therewith as such Debts mature.

 

5.1.3                Warranties and
Representations Accurate.  All
warranties and representations made by or on behalf of any of NMLP and the
other NMLP Loan Parties, or any of them, to Administrative Agent or any of the
Lenders shall be true, accurate and complete in all material respects and, to
the best of NMLP’s Knowledge, shall not omit any material fact necessary to
make the same not misleading.

 

5.1.4                Validity and
Sufficiency of NMLP Security Documents. 
The NMLP Security Documents shall create a valid and perfected lien on
the NMLP Collateral described therein and each of the NMLP Security Documents
and related UCC filings shall have been duly recorded and filed to the
satisfaction of Administrative Agent and Administrative Agent’s counsel,
including, without limitation, as follows:

 

(a)                                  On
the Funding Date, NMLP and the other NMLP Loan Parties shall have delivered to
the Administrative Agent evidence of the completion of all recordings and
filings of, or with respect to, the NMLP Security Documents or, in the case of
UCC-1 financing statements, delivery of such financing statements in proper
form for recording, and shall have taken all such other actions as may be
necessary or, in the reasonable opinion of the Administrative Agent, desirable
to perfect the Liens and security interests intended to be created by the NMLP
Security Documents in the NMLP Collateral covered thereby.  Such filings, recordings and other actions
shall include, without limitation, in addition to the UCC-1 financing
statements, (x) the delivery to the Administrative Agent of the certificates,
if any, representing the capital stock being pledged to Administrative Agent,
on behalf of the Lenders, pursuant to the NMLP Security Documents, together
with signed, undated stock powers, (y) delivery to the Administrative Agent of
the certificates, if any, representing the respective partnership and
membership interests in each partnership and limited liability company, the
partnership or membership interests in which are being pledged to Administrative

 

32

 

Agent on behalf of the Lenders
pursuant to the NMLP Security Documents, and (z) delivery to the Administrative
Agent of all consents, acknowledgments, and approvals relating in any way to
the NMLP Security Documents as the Administrative Agent in its reasonable
discretion determines appropriate, including, without limitation, those
consents and approvals set forth in the Loan Agenda with respect to the
granting of the NMLP Security Documents and the acknowledgment of the interests
of the Administrative Agent and the Lenders created therein (the “NMLP Consents”);
and

 

(b)                                 on
or prior to the Funding Date, the Administrative Agent shall have received the
results of a UCC,  tax
lien and judgment search in the jurisdictions in which NMLP, the NMLP Subsidiaries,
and any other NMLP Loan Parties, respectively, are organized, have assets, or
have their chief executive office, and the results of such search shall
indicate there are no judgments or Liens not permitted under the NMLP Loan
Documents.

 

5.1.5                Payment
Direction And Authorization. Administrative Agent shall have received
evidence of such NMLP Payment Direction Letters set forth in the Loan Agenda in
order to evidence the intended management of the cash flow of NMLP, the NMLP
Loan Parties (except the Excepted Loan Parties), and the NMLP Subsidiaries.

 

5.1.6                Integrated
Matters.  Administrative Agent shall
have received each of the Integrated Documents, each of which shall be
reasonably satisfactory in form and substance. 
On the Funding Date the Integrated Documents shall be in full force and
effect, and the Administrative Agent shall have received full and complete
copies thereof, certified as such by such Persons as Administrative Agent shall
determine appropriate.

 

5.1.7                Litigation.  Except as noted on Schedule 6.1.5, on
the Funding Date, there shall not be any actions, suits or proceedings at law
or in equity or by or before any governmental instrumentality or other agency
or regulatory authority by any entity (private or governmental) pending or, to
the best of NMLP’s Knowledge, threatened with respect to the NMLP Loan, the
transactions contemplated in the NMLP Loan Documents or any documentation
executed in connection therewith, or NMLP, any other NMLP Loan Party, or any
other NMLP Subsidiary, which the Administrative Agent shall determine in good
faith is likely to have a Material Adverse Effect.

 

5.1.8                Formation
Documents and Entity Agreements.

 

(a)                                  On
the Funding Date, the Administrative Agent shall have received a certificate of
the general partner or managing member or manager, as applicable, of NMLP and
each other NMLP Loan Party which is a partnership or limited liability company,
annexing and certifying as to (a) the Formation Documents of such entity
having been duly executed, delivered and filed and remaining in full force and
effect and unmodified as of the date of such certificate (and annexing a copy
thereof), (b) due authorization, execution and delivery by such entity of
the NMLP Loan Documents to which it is a party, and (c) such

 

33

 

entity being in good standing
and authorized to do business in each jurisdiction where the ownership of its
assets and operation of its business requires such qualification, as each of
the foregoing is set forth in Loan Agenda;

 

(b)                                 On
the Funding Date, the Administrative Agent shall have received a certificate of
the managing member or manager of each NMLP Loan Party  which is a limited liability company annexing
and certifying as to (a) resolutions of such entity authorizing and
approving the transactions contemplated by the NMLP Loan Documents, and the
execution and delivery thereof by such entity in respect of the documents to
which it is a party and on behalf of the other entities in which such limited liability
company is a general partner or managing member in respect of any of the NMLP
Loan Documents, (b) signatures and incumbency of all officers of such
limited liability company executing documentation on behalf of such entity or
on behalf of any entity as to which such limited liability company is a general
partner or managing member, as the case may be, in connection with the
transactions contemplated by the NMLP Loan Documents, (c) the Formation
Documents of such entity having been duly executed, delivered and filed and
remaining in full force and effect and unmodified as of the date of such
certificate (and annexing copies thereof) and (d) such entity being in
good standing and authorized to do business in each jurisdiction where the
conduct of its business and ownership of its assets requires such
qualification, as each of the foregoing is set forth in the Loan Agenda.

 

(c)                                  On
the Funding Date, the Administrative Agent shall have received a certificate of
the secretary of each NMLP Loan Party which is a corporation annexing and
certifying as to (a) corporate resolutions of such entity authorizing and
approving the transactions contemplated by the NMLP Loan Documents, and the
execution and delivery thereof by such entity in respect of the documents to which
it is a party and on behalf of the other entities in which such corporation is
a general partner or managing member in respect of any of the NMLP Loan
Documents, (b) signatures and incumbency of all officers of such
corporation executing documentation on behalf of such entity or on behalf of
any entity as to which such corporation is a general partner or managing
member, as the case may be, in connection with the transactions contemplated by
the NMLP Loan Documents, (c) the Formation Documents of such entity having
been duly executed, delivered and filed and remaining in full force and effect
and unmodified as of the date of such certificate (and annexing copies thereof)
and (d) such entity being in good standing and authorized to do business
in each jurisdiction where the conduct of its business and ownership of its
assets requires such qualification, including, as each of the foregoing is set
forth in the Loan Agenda.

 

5.1.9                Compliance With
Law.  There are no Legal Requirements
which prohibit or adversely limit the capacity or authority of NMLP to enter
into the NMLP Loan or any NMLP Loan Party to execute the NMLP Loan Documents to
which it is a party, and perform the obligations of such Person with respect
thereto.

 

34

 

5.1.10          Compliance With
Financial Covenants.  Administrative
Agent shall have received an Officer’s Certificate reflecting compliance with
the Financial Covenants and the terms and conditions hereof.

 

5.1.11          Due Diligence.  Administrative Agent shall have received and
completed a review of such due diligence as the Administrative Agent may
require with respect to any Individual Property, including, without limitation:

 

(a)                                  Updated
title reports with respect to the Individual Properties owned (fee simple or
land estate) or ground leased by any Net Lease Partnership, reflecting the
owner thereof, the interest of the NMLP Subsidiary therein, and any Mortgage
Debt (the “Title Reports”);

 

(b)                                 As
requested by the Administrative Agent, copies of all notes and mortgages
evidencing all 
Mortgage Debt on any Individual Property;

 

(c)                                  As
requested by the Administrative Agent, copies of all Ownership Interest
Agreements;

 

(d)                                 A
certification as to the principal 
balance due on all Mortgage Debt as of July 15, 2005, to the extent
such Mortgage Debt shall remain outstanding after consummation of the Loan;

 

(e)                                  As
requested by the Administrative Agent, the documentation establishing the
remainderman interest of NK-Remainder Interest LLC in certain of the Individual
Properties, as detailed on Schedule 6.1.18(g);

 

(f)                                    As
requested by the Administrative Agent, the documentation establishing the
ground lessor of NK-Remainder Interest LLC in certain of the Individual
Properties, as detailed on Schedule 6.1.18(f);

 

(g)                                 To
the extent requested by the Administrative Agent for any Individual Property,
third party market rent updates; and

 

(h)                                 To
the extent requested by the Administrative Agent for any Individual Property,
copies of all Leases.

 

5.1.12          Payoff Letters.  Payoff letters in form acceptable to the
Administrative Agent with respect to all Mortgage Debt to be repaid or defeased
in connection with the consummation of the Loan, together with letters from the
holders of such Mortgage Debt releasing the tenant of each such Individual
Property from the prior direction to pay rent to the holders of such Mortgage
Debt, and a separate letter from such holder agreeing to forward to the
Administrative Agent, in kind, any rental payments thereafter received;

 

5.1.13          Condition of Property.  There shall have been no uninsured unrepaired
or unrestored damage or destruction by fire or otherwise to any of the real or
tangible personal property comprising or intended to comprise the Individual
Properties which could reasonably be expected to have a Material Adverse
Effect.

 

35

 

5.1.14          Insurance.  NMLP shall have provided to Administrative
Agent and each of the Lenders evidence of the following insurance, each meeting
the requirements of the Administrative Agent: (i) reasonably satisfactory
blanket liability insurance in favor of NMLP and each of the NMLP Subsidiaries,
with the Administrative Agent and the Lenders named as additional insureds; (ii) a
reasonably satisfactory report from the third party monitoring the insurance as
to the hazard and other insurance on the Individual Properties maintained by
the respective tenant thereof, evidencing 
compliance with Exhibit E and, as applicable, the respective
Lease of each Individual Property, and (iii) a reasonably satisfactory
third party contract regarding the monitoring of the insurance to be obtained
by tenants under Leases with respect to the Individual Properties, with the
Administrative Agent being named as mortgagee and loss payee on any policy with
respect to a Mortgage Property.

 

5.1.15          Third Party Consents
and Agreements.  The Administrative
Agent shall have received the Consents and such other third party consents and
agreements as the Administrative Agent may require with respect to the NMLP
Loan.

 

5.1.16          Management Agreements.  The Administrative Agent shall have received
copies of the executed Amended and Restated Asset Management Agreement and
Contract to Provide Asset Management Services, each of which shall be
satisfactory as to form and substance.

 

5.1.17          Cash Management.  NMLP, each NMLP Subsidiary (except for the
NMLP Partnership GP’s, the Borrower GP, and 
Newkirk MLP Corp.), and each other NMLP Loan Party (except the Excepted
Loan Parties) shall open a NMLP Depository Account, as provided for herein, and,
except for the GMAC Borrowers, the NMLP Partnership GP’s, the NMLP GP,  Newkirk MLP Corp., and the other NMLP Loan
Parties (which are not NMLP Subsidiaries), shall enter into a Cash Management
Agreement with the Administrative Agent and the Deposit Account Co-Agent.

 

5.1.18          Loan Facility Rating.  The Loans shall have received a rating
(collectively, the “Ratings”) from Moody’s Investors Services, Inc. of at
least Ba3 and a rating from Standard and Poor’s Rating Group of at least BB-.  NMLP agrees to take all action and provide
all information as may be reasonably requested by the Administrative Agent in
obtaining such Ratings.

 

5.1.19          Interest Rate
Agreement.  NMLP shall have entered
into an Interest Rate Agreement, in an amount, from an issuer and in form and
substance reasonably acceptable to the Administrative Agent, with respect to
the NMLP Loan in accordance with Section 2.8.3, which Interest Rate
Agreement shall be collaterally assigned to the Administrative Agent, on behalf
of the Lenders, to secure the NMLP Obligations.

 

5.1.20          Legal Opinions.  Administrative Agent shall have received and
approved legal opinion letters from counsel representing NMLP and the other
NMLP Loan Parties which meet the Administrative Agent’s legal opinion

 

36

 

requirements and covering such
matters incident to the transactions contemplated herein, as the Administrative
Agent may reasonably request.

 

5.1.21          Extensions.  Administrative Agent shall have received
evidence that (a) all Ground Lease Extension Options with respect to Ground
Leases on Individual Properties which were set to expire prior to December 31,
2006 have been validly exercised, and (b) all Remainder Ground Lease
Options with respect to estates for years for Individual Properties set to
expire prior to December 31, 2006 have been validly exercised.

 

5.1.22          No Default.  There shall not be any Default under any of
the NMLP Loan Documents.

 

5.2                                 Closing
T-Two Loan and Funding T-Two Loan Advance. 
It shall be a condition precedent of Lenders’ obligation to close the
T-Two Loan and to fund the proceeds of the T-Two Loan (the “T-Two Loan Advance”)
that each of the following conditions precedent be satisfied in full (as
determined by each Lender in its discretion which discretion shall be exercised
in good faith having due regard for the advice of the Administrative Agent),
unless specifically waived in writing by all of the Lenders at or prior to the
Funding Date:

 

5.2.1                Satisfactory
T-Two Loan Documents and Related Documents; Loan Agenda Items.  On the Funding Date, each of the T-Two Loan
Documents and the Related Documents shall be satisfactory in form, content and
manner of execution and delivery to Administrative Agent and Administrative
Agent’s counsel and all T-Two Loan Documents and Related Documents shall be in
full force and effect.  Without limiting
the foregoing, the Administrative Agent shall have received each of the
instruments, documents, and agreements itemized on the Loan Agenda, each
executed and delivered in favor of, and/or in form and substance reasonably
satisfactory to, the Administrative Agent.

 

5.2.2                Financial
Information; No Material Change.

 

(a)                                  No
change shall have occurred in the financial condition, business, affairs,
operations or control of T-Two, the T-Two Loan Parties, since the date of their
respective financial statements most recently delivered to Administrative Agent,
which change has had or could reasonably be expected to have a Material Adverse
Effect; and T-Two and the other T-Two Loan Parties shall have furnished Administrative
Agent such other financial information, projections, and certifications as
reasonably requested by the Administrative Agent.

 

(b)                                 The
absence of any material adverse change in the loan syndication, financial or
capital market conditions generally from those currently in effect.

 

(c)                                  T-Two
shall have provided to the Administrative Agent a copy certified by an officer
of T-Two of its balance sheet after giving effect to the T-Two Loan, to
evidence that T-Two is solvent, has assets having a fair value in excess of the
amount required to pay T-Two’s probable liabilities on T-Two’s existing Debts
as such become absolute and mature, and has adequate capital for

 

37

 

the conduct of T-Two’s business
and the ability to pay T-Two’s Debts from time to time incurred in connection
therewith as such Debts mature.

 

5.2.3                Warranties and
Representations Accurate.  All
warranties and representations made by or on behalf of any of T-Two and the
other T-Two Loan Parties, or any of them, to Administrative Agent or any of the
Lenders shall be true, accurate and complete in all material respects and, to
the best of T-Two’s Knowledge, shall not omit any material fact necessary to
make the same not misleading.

 

5.2.4                Validity and
Sufficiency of T-Two Security Documents. 
The T-Two Security Documents shall create a valid and perfected lien on
the T-Two Collateral described therein and each of the T-Two Security Documents
and related UCC filings shall have been duly recorded and filed to the
satisfaction of Administrative Agent and Administrative Agent’s counsel,
including, without limitation, as follows:

 

(a)                                  On
the Funding Date, T-Two and the other T-Two Loan Parties shall have delivered
to the Administrative Agent evidence of the completion of all recordings and
filings of, or with respect to, the T-Two Security Documents or, in the case of
UCC-1 financing statements, delivery of such financing statements in proper
form for recording, and shall have taken all such other actions as may be
necessary or, in the reasonable opinion of the Administrative Agent, desirable
to perfect the Liens and security interests intended to be created by the T-Two
Security Documents in the T-Two Collateral covered thereby.  Such filings, recordings and other actions
shall include, without limitation, in addition to the UCC-1 financing
statements, (x) the delivery to the Administrative Agent of the certificates,
if any, representing the capital stock being pledged to Administrative Agent,
on behalf of the Lenders, pursuant to the T-Two Security Documents, together
with signed, undated stock powers, (y) delivery to the Administrative Agent of
the certificates, if any, representing the respective partnership and
membership interests in each partnership and limited liability company, the
partnership or membership interests in which are being pledged to Administrative
Agent on behalf of the Lenders pursuant to the T-Two Security Documents, and
(z) delivery to the Administrative Agent of all consents, acknowledgments, and
approvals relating in any way to the T-Two Security Documents as the Administrative
Agent in its reasonable discretion determines appropriate, including, without
limitation, those consents and approvals set forth in the Loan Agenda with
respect to the granting of the T-Two Security Documents and the acknowledgment
of the interests of the Administrative Agent and the Lenders created therein
(the “T-Two Consents”); and

 

(b)                                 on
or prior to the Funding Date, the Administrative Agent shall have received the
results of a UCC,  tax
lien and judgment search in the jurisdictions in which T-Two, and any other
T-Two Loan Parties, respectively, are organized, have assets, or have their
chief executive office, and the results of such search shall indicate there are
no judgments or Liens not permitted under the T-Two Loan Documents.

 

38

 

5.2.5                Payment
Direction And Authorization. Administrative Agent shall have received
evidence of such T-Two Payment Direction Letters set forth in the Loan Agenda
in order to evidence the intended management of the cash flow of T-Two.

 

5.2.6                Litigation.  On the Funding Date, there shall not be any
actions, suits or proceedings at law or in equity or by or before any
governmental instrumentality or other agency or regulatory authority by any
entity (private or governmental) pending or, to the best of T-Two’s Knowledge,
threatened with respect to the T-Two Loan, the transactions contemplated in the
T-Two Loan Documents or any documentation executed in connection therewith, or
T-Two, any other T-Two Loan Party, which the Administrative Agent shall
determine in good faith is likely to have a Material Adverse Effect.

 

5.2.7                Formation
Documents and Entity Agreements.

 

(a)                                  On
the Funding Date, the Administrative Agent shall have received a certificate of
the general partner, or managing member or manager, as applicable, of T-Two and
each other T-Two Loan Party which is a partnership or limited liability
company, annexing and certifying as to (a) the Formation Documents of such
entity having been duly executed, delivered and filed and remaining in full
force and effect and unmodified as of the date of such certificate (and annexing
a copy thereof), (b) due authorization, execution and delivery by such
entity of the T-Two Loan Documents to which it is a party, and (c) such
entity being in good standing and authorized to do business in each
jurisdiction where the ownership of its assets and operation of its business
requires such qualification, as each of the foregoing is set forth in Loan
Agenda;

 

(b)                                 On
the Funding Date, the Administrative Agent shall have received a certificate of
the manager or managing member of each T-Two Loan Party  which is a limited liability company annexing
and certifying as to (a) resolutions of such entity authorizing and
approving the transactions contemplated by the T-Two Loan Documents, and the
execution and delivery thereof by such entity in respect of the documents to
which it is a party and on behalf of the other entities in which such limited
liability company is a general partner or managing member in respect of any of
the T-Two Loan Documents, (b) signatures and incumbency of all officers of
such limited liability company executing documentation on behalf of such entity
or on behalf of any entity as to which such limited liability company is a
general partner or managing member, as the case may be, in connection with the
transactions contemplated by the T-Two Loan Documents, (c) the Formation
Documents of such entity having been duly executed, delivered and filed and
remaining in full force and effect and unmodified as of the date of such
certificate (and annexing copies thereof) and (d) such entity being in
good standing and authorized to do business in each jurisdiction where the
conduct of its business and ownership of its assets requires such
qualification, as each of the foregoing is set forth in the Loan Agenda.

 

(c)                                  On
the Funding Date, the Administrative Agent shall have received a certificate of
the secretary of each T-Two Loan Party which is a corporation

 

39

 

annexing and certifying as to (a) corporate
resolutions of such entity authorizing and approving the transactions
contemplated by the T-Two Loan Documents, and the execution and delivery
thereof by such entity in respect of the documents to which it is a party and
on behalf of the other entities in which such corporation is a general partner
or managing member in respect of any of the T-Two Loan Documents, (b) signatures
and incumbency of all officers of such corporation executing documentation on
behalf of such entity or on behalf of any entity as to which such corporation
is a general partner or managing member, as the case may be, in connection with
the transactions contemplated by the T-Two Loan Documents, (c) the
Formation Documents of such entity having been duly executed, delivered and
filed and remaining in full force and effect and unmodified as of the date of
such certificate (and annexing copies thereof) and (d) such entity being
in good standing and authorized to do business in each jurisdiction where the
conduct of its business and ownership of its assets requires such qualification,
including, as each of the foregoing is set forth in the Loan Agenda.

 

5.2.8                Compliance With
Law.  There are no Legal Requirements
which prohibit or adversely limit the capacity or authority of T-Two to enter
into the T-Two Loan or any T-Two Loan Party to execute the T-Two Loan Documents
to which it is a party, and perform the obligations of such Person with respect
thereto.

 

5.2.9                Due Diligence.  Administrative Agent shall have received and
completed a review of such due diligence as the Administrative Agent may
require with respect to any Securitized Property, including, without
limitation:

 

(a)                                  As
requested by the Administrative Agent, Title Reports with respect to any
Securitized Property securing any Securitized Note, reflecting the owner
thereof, the interest of the NMLP Subsidiary therein, and any Mortgage Debt;

 

(b)                                 Copies
of all notes and mortgages evidencing all Securitized Notes and Securitized
Mortgages; and

 

(c)                                  A
certification as to the principal balance due on all Securitized Notes as of July 15,
2005.

 

5.2.10          Condition of Property.  There shall have been no uninsured unrepaired
or unrestored damage or destruction by fire or otherwise to any of the real or
tangible personal property comprising or intended to comprise the Securitized
Properties which could reasonably be expected to have a Material Adverse
Effect.

 

5.2.11          Insurance.  T-Two shall have provided to Administrative
Agent and each of the Lenders evidence of the following insurance, each meeting
the requirements of the Administrative Agent: (i) a reasonably
satisfactory report from the third party monitoring the insurance as to the
hazard and other insurance on the Securitized Properties maintained by the
respective tenant

 

40

 

thereof, evidencing compliance
with Exhibit E and, as applicable, the respective Lease of each
Individual Property, such insurance to reflect, and (ii) a reasonably
satisfactory third party contract regarding the monitoring of the insurance to
be obtained by tenants under Leases with respect to the Individual Properties.

 

5.2.12          Third Party Consents
and Agreements.  The Administrative
Agent shall have received the Consents and such other third party consents and
agreements as the Administrative Agent may require with respect to the T-Two
Loan.

 

5.2.13          Cash Management.  T-Two shall open a T-Two Depository Account,
as provided for herein, and enter into the Cash Management Agreement with the Administrative
Agent and the Deposit Account Co-Agent.

 

5.2.14          Interest Rate  Agreement.  T-Two shall have entered into an Interest
Rate Agreement, in an amount, from an issuer and in form and substance
reasonably acceptable to the Administrative Agent, with respect to the T-Two
Loan in accordance with Section 2.8.3, which Interest Rate Agreement shall
be collaterally assigned to the Administrative Agent, on behalf of the Lenders,
to secure the T-Two Obligations.

 

5.2.15          Legal Opinions.  Administrative Agent shall have received and
approved legal opinion letters from counsel representing T-Two and the other
T-Two Loan Parties which meet Administrative Agent’s legal opinion requirements
and covering such matters incident to the transactions contemplated herein, as
the Administrative Agent may reasonably request.

 

5.2.16          No Default.  There shall not be any Default under any of
the T-Two Loan Documents.

 

ARTICLE 6

WARRANTIES AND REPRESENTATIONS.

 

6.1                                 NMLP.  NMLP warrants and represents to Administrative
Agent and each of the Lenders for the express purpose of inducing Lenders to
enter into this Agreement, to make the NMLP Loan Advance, and to otherwise
complete all of the transactions contemplated hereby that upon the date of the
NMLP Loan Advance and at all times thereafter until the NMLP Loan has been
repaid and all NMLP Obligations have been satisfied as follows:

 

6.1.1                Formation.  NMLP, each NMLP Subsidiary, and each Other
Partnership, and each Partially Owned Limited Partnership has been duly formed
and is validly existing and in good standing as a corporation, partnership or
limited liability company, as the case may be, under the laws of the State of
its formation.  NMLP, each NMLP
Subsidiary, and each Other Partnership has the requisite corporate, partnership
or company power and authority, as applicable, to own its assets and conduct
its businesses as currently conducted and owned, and to enter into and perform
its obligations under each NMLP Loan Document and/or Related Document to which
it is a party.  NMLP, each NMLP
Subsidiary,

 

41

 

each Other Partnership, and
each Partially Owned Limited Partnership is in good standing and authorized to
do business in each jurisdiction where the ownership of its assets and/or the
conduct of its business requires such qualification except where the failure to
be so qualified would not have a Material Adverse Effect.

 

6.1.2                Proceedings;
Enforceability.  NMLP, each NMLP
Subsidiary, each Other Partnership, and each Partially Owned Limited
Partnership has taken all requisite corporate, partnership or company action,
as applicable, to authorize the execution, delivery and performance by such
Person of the Loan Documents and/or the Related Documents to which it is a
party.  Each NMLP Loan Document and the
Related Document to which it is a party which is required to be executed and
delivered on or prior to the date on which this representation and warranty is
being made, has been duly authorized, executed and delivered and constitutes
the legal, valid and binding obligation of NMLP, each NMLP Subsidiary, each
Other Partnership, and each Partially Owned Limited Partnership which is a
party thereto, enforceable against each such Person in accordance with its
respective terms except to the extent that the enforceability thereof may be
limited by applicable bankruptcy, insolvency and similar laws affecting rights
of creditors generally and to general principles of equity (regardless of
whether enforcement is sought in a proceeding in equity or at law).

 

6.1.3                Conflicts.  Neither the execution, delivery and performance
of the Loan Documents and the Related Documents by NMLP, any NMLP Subsidiary,
any Other Partnership, or any Partially Owned Limited Partnership or compliance
by any such Person with the terms and provisions thereof (including, without
limitation, the granting of Liens pursuant to the NMLP Security Documents), (i) will
contravene any provision of any law, statute, rule or regulation or any
order, writ, injunction or decree of any court or governmental instrumentality,
(ii) will conflict with or result in any breach of any of the terms,
covenants or conditions of, or constitute a default under, or result in the
creation or imposition (or the obligation to create or impose) of any Lien
(except pursuant to the NMLP Security Documents) upon any of the property or
assets of any such Person pursuant to the terms of any indenture, mortgage,
deed of trust, credit agreement or loan agreement or any other agreement,
contract or instrument to which any such Person is a party or by which it or
any of its properties or assets is bound or to which it may be subject or (iii) will
violate any provision of any Formation Document of any such Person.

 

6.1.4                Ownership and
Taxpayer Identification Numbers.

 

(a)                                  All
of the partners, owners, stockholders, and members, respectively and as may be
applicable, of NMLP, NMLP GP, Newkirk Capital LLC, NK-Leyden Loan, L.P. and
NK-Dautec Loan, L.P. are listed in Exhibit F.  The exact correct name and organizational
number(s) and federal employer identification  number(s) of NMLP and each NMLP Loan
Party are accurately stated in Exhibits F, L and M.

 

42

 

(b)                                 NMLP
is the owner of all of the ownership interests set forth in Section 3.1.2,
above,  pledged
by it to the Administrative Agent, on behalf of the Lenders.  Except for such ownership interests, NMLP
does not directly hold any stock, membership, partnership or ownership interest
in any other Person.

 

(c)                                  NMLP
and each NMLP Subsidiary is the owner of all of the ownership interests to be
pledged to the Administrative Agent, on behalf of the Lenders, pursuant to the
NMLP Loan Documents.  Except for such
ownership interests and except as shown on Schedule 6.1.4(c), NMLP
and the NMLP Subsidiaries do not directly hold any stock, membership, partnership
or ownership interest in any other Person.

 

(d)                                 Except
for the 100% ownership interest in T-Two, the ownership interests in NMLP and
as shown on Schedule 6.1.4(d), no Newkirk Group Entity, directly or
indirectly, owns or controls any interest in any asset relating to NMLP or the
business operations of the NMLP and the NMLP Subsidiaries.

 

6.1.5                Litigation.
 Except as set forth in Schedule 6.1.5,
there are no actions, suits or proceedings at law or in equity or by or before
any governmental instrumentality or other agency or regulatory authority by any
entity (private or governmental) pending or, to the best of NMLP’s Knowledge,
threatened with respect to the NMLP Loan, or the transactions contemplated in
the NMLP Loan Documents or the Related Documents, or any documentation executed
in connection therewith, or NMLP, any NMLP Subsidiary, any Other Partnership,
or any each Partially Owned Limited Partnership which could reasonably be
expected to have a Material Adverse Effect.

 

6.1.6                Information.  All factual information furnished by or on
behalf of NMLP, any NMLP Subsidiary, any Other Partnership, or any Partially
Owned Limited Partnership to the Administrative Agent and/or any of the Lenders
(including, without limitation, all information contained in the NMLP Loan
Documents) for purposes of or in connection with this Agreement, the other NMLP
Loan Documents or any transaction contemplated herein or therein is, and all
other such factual information hereafter furnished by or on behalf of NMLP, any
NMLP Subsidiary, any Other Partnership, or any Partially Owned Limited
Partnership to the Administrative Agent and/or any of the Lenders will be, true
and accurate in all material respects on the date as of which such information
is dated or certified and to the best of the NMLP’s Knowledge, not incomplete
by omitting to state any fact necessary to make such information not misleading
in any material respect at such time in light of the circumstances under which
such information was provided.

 

6.1.7                Taxes.  NMLP, all NMLP Subsidiaries, all Other
Partnerships, and all Partially Owned Limited Partnerships have made all
required tax filings and have paid all federal, state and local taxes
applicable to them and/or their respective assets, except if contested in accordance
with Section 9.1.

 

6.1.8                Financial
Information.  The financial
statements of the Newkirk Group Entities (other than Vornado Realty Trust), the
NMLP Subsidiaries, and

 

43

 

NMLP provided to the Administrative
Agent present fairly the financial conditions of each at the dates of such
statements of financial condition and the results of operations for the periods
covered thereby.  The financial
projections of the NMLP Subsidiaries and NMLP present a good faith estimate of
the projected financial condition of each at the reflected dates and the
projected results of operations for the periods covered thereby. Since the
dates of the relevant financial statements, no change has occurred which could
have or reasonably be expected to have a Material Adverse Effect.

 

6.1.9                Management
Agreements.  True and correct copies
of the Amended and Restated Management Agreement and the Contract to Provide
Asset Management Services have been delivered to the Administrative Agent, each
of which is in full force and effect and no material default has occurred
thereunder.  There are no other
management agreements or asset management agreements respecting the management
of the assets of NMLP, any of the NMLP Subsidiaries, any Other Partnership, or
any Partially Owned Limited Partnership.

 

6.1.10          Control Provisions.

 

(a)                                  NMLP, controls, directly or indirectly, and without the
requirement for consent of any other Person, the management of each NMLP
Subsidiary.

 

(b)                                 There
are no provisions in any limited partnership agreement, operating agreement,
certificate of incorporation, bylaws or any other agreement or instrument to
which NMLP or any NMLP Subsidiary is party, under which any Person (other than
NMLP or a NMLP Subsidiary) has the right to exercise the management or control
rights, powers or authority currently belonging to NMLP or any NMLP Subsidiary,
except as set forth in (i) any mortgage, deed of trust or similar security
agreement encumbering any Individual Property upon exercise of the rights and
remedies upon default set forth in any of the foregoing, (ii) the
Integrated Documents upon exercise of the rights and remedies upon default set
forth therein, or (iii) the Formation Documents of any Other Partnership,
or any Partially Owned Limited Partnership.

 

6.1.11          Formation Documents.  NMLP has delivered or caused to be delivered
to the Administrative Agent true and complete copies of all Formation Documents
of the NMLP Loan Parties and other NMLP Subsidiaries, and all amendments thereto
as of the date hereof and as of the date of the NMLP Loan Advance.

 

6.1.12          Related Documents.
 To the extent not provided for otherwise
in this Article 6, true and correct copies of all other Related Documents,
together with all amendments and modifications thereto, have been delivered to
the Administrative Agent, each of which is in full force and effect and no
material default has occurred thereunder which could have a Material Adverse
Effect.

 

44

 

6.1.13          Bankruptcy Filings.  Neither NMLP, nor any NMLP Subsidiary, nor
any Other Partnership, nor any Partially Owned Limited Partnership is
contemplating either a filing of a petition under any state or federal
bankruptcy or insolvency laws or the liquidation of all or a major portion of
its assets or property, and NMLP has no Knowledge of any Person contemplating
the filing of any such petition against any of NMLP, any NMLP Subsidiary, any
Other Partnership, or any Partially Owned Limited Partnership.

 

6.1.14          Options. No
Person holds a right of first refusal or option to purchase with respect to any
item of NMLP Collateral, other than as set forth in the Call Option Agreement.

 

6.1.15          Investment Company.  Neither NMLP, nor any NMLP Subsidiary, nor any  Other Partnership,
nor any Partially Owned Limited Partnership is an “investment company” or a
company “controlled” by an “investment company,” within the meaning of the
Investment Company Act of 1940, as amended.

 

6.1.16          Holding Company.  Neither NMLP, nor any NMLP Subsidiary, nor any  Other
Partnership, nor any Partially Owned Limited Partnership is a “holding company,”
or a “subsidiary company” of a “holding company,” or an “affiliate” of a “holding
company” or of a “subsidiary company” of a “holding company,” within the
meaning of the Public Utility Holding Company Act of 1935, as amended.

 

6.1.17          Securitization
Documents.  (i) The
Securitization Documents have not been amended, terminated or rescinded in any
material respect, and remain in full force and effect; (ii) the collateral
agent under the Securitization Documents is the holder of the Securitized Notes
and Securitized Mortgages; (iii) T-Two is the sole and direct beneficial
owner of the Grantor Trust T-2 Certificate and the Grantor Trust T-1
Certificate, free and clear of any Liens except for the rights of NMLP under
the Call Option Agreement; (iv) to the best of NMLP’s Knowledge, none of
the Net Lease Partnerships is in default under any NMLP Securitized Note or
NMLP Securitized Mortgage and NMLP does not know of any event which, but for
the passage of time or the giving of notice, or both, would constitute a
default under any of such NMLP Securitized Note or NMLP Securitized Mortgage;
and (v) except for the interest held by T-Two in the Grantor Trust T-2
Certificate and the Grantor Trust T-1 Certificate, no NMLP Loan Party, NMLP
Subsidiary, or Newkirk Group Entity holds, either directly or indirectly, any
interest in the Securitization Documents.

 

6.1.18          Individual Properties.

 

(a)                                  Each
of the Net Lease Partnerships possesses such Licenses and Permits issued by the
appropriate federal, state, or local regulatory agencies or bodies necessary to
own and operate each Individual Property, except where the failure to possess
any such License or Permit would not have a Material Adverse Effect. The Net
Lease Partnerships are in material compliance with the terms and conditions of
all such Licenses and Permits, except where the failure so to comply

 

45

 

would not, singly or in the
aggregate, result in a Material Adverse Effect. 
All of the Licenses and Permits are valid and in full force and effect,
except where the invalidity of such Licenses and Permits or the failure of such
Licenses and Permits to be in full force and effect would not result in a
Material Adverse Effect.  Neither the
Borrower nor any of the Net Lease Partnerships has received any notice of
proceedings relating to the revocation or modification of any such Licenses and
Permits which, singly or in the aggregate, if the subject of an unfavorable
decision, ruling or finding, would result in a Material Adverse Effect.

 

(b)                                 Except
to the extent the failure of the following to be true would not result in a
Material Adverse Effect, (i) the Net Lease Partnerships have either (x)
fee simple title to the Individual Properties, (y) a land estate interest for a
specified number of years in the Individual Properties, or (z) a leasehold
estate interest in the Individual Properties, as set forth in Schedule 6.1.18(b)(i);
(ii) the interests of the Net Lease Partnerships in the Individual
Properties are not subject to any Liens securing the repayment of money except
for those securing the repayment of (x) the First Mortgage Debt, as set forth
in Schedule 6.1.18(b)(ii)(x), (y) the Other Second Mortgage Debt,
as set forth in Schedule 6.1.18(b)(ii)(y), or (z) the NMLP
Securitized Notes, as set forth in Schedule 6.1.18(b)(ii)(z); and (iii) except
as set forth in Schedule 6.1.18(b)(iii), each land estate
remainderman interest and lessor interest under a Ground Lease is not, directly
or indirectly, owned or controlled by a Loan Party, Borrower Subsidiary or
Newkirk Group Entity;

 

(c)                                  Except
to the extent the failure of the following to be true would not result in a
Material Adverse Effect, (i) to the best of NMLP’s Knowledge, each
Individual Property is free of any Hazardous Materials in violation of any
Environmental Laws applicable to such property; (ii) none of the Net Lease
Partnerships or Borrower has received any notice of a claim under or pursuant
to any Environmental Laws applicable to an Individual Property or under common
law pertaining to Hazardous Materials on or originating from any Individual
Property; and (iii) none of the Net Lease Partnerships or NMLP has received
any notice from any Governmental Authority claiming any material violation of
any Environmental Laws that is uncured or unremediated as of the date hereof;

 

(d)                                 The
mortgages and deeds of trust encumbering the Individual Properties of any Net
Lease Partnerships are not cross-defaulted or cross-collateralized to any
Individual Property owned by any other Net Lease Partnerships;

 

(e)                                  Except
to the extent the failure of the following to be true would not result in a
Material Adverse Effect, (i) with respect to the Individual Properties,
each Lease is in full force and effect, (ii) except as set forth in Schedule 6.1.18(e)(ii),
to the best of NMLP’s Knowledge, none of the Net Lease Partnerships is in
default in the performance of any material obligation under any Lease and NMLP
has no Knowledge of any circumstances which, with the passage of time or the
giving of notice, or both, would constitute an event of default by any party
under any of the Leases, (iii) except as set forth in Schedule 6.1.18(e)(ii),
to the best of NMLP’s Knowledge, no tenant is in monetary default

 

46

 

beyond 30 days or material
nonmonetary default under its Lease, (iv) except as otherwise expressly
set forth in Schedule 6.1.18(e)(iv), to the best of NMLP’s
Knowledge, there are no actions, voluntary or involuntary, pending against any
tenant under a Lease under any bankruptcy or insolvency laws, (v) none of
the Leases and none of the rents or other amounts payable thereunder has been
assigned, pledged or encumbered by any of the Net Lease Partnerships or any
other Person, except in connection with financing secured by the applicable
Individual Property, (vi) the basic terms and conditions of each Lease are
set forth in Schedule 6.1.18(e)(vi) (the foregoing schedule,
as updated from time to time as provided herein, being referred to herein as
the “Lease Schedule”), and (vii) each Master Lease which was entered into,
or assumed, by any Net Lease Partnership has merged into the applicable
Sublease by operation of law, such that the tenant as to which the credit
rating is provided, is obligated directly to the applicable Net Lease
Partnership under the Lease for the payment of the rent due under the Lease.

 

(f)                                    Except
to the extent the failure of the following to be true would not result in a
Material Adverse Effect, (i) each Ground Lease is valid, binding and in
full force and effect as against the applicable Net Lease Partnerships and, to
the best of NMLP’s Knowledge, the other party thereto, (ii) except for
tenants under the Leases and except in connection with security relating to the
Mortgage Debt, none of the Ground Leases is subject to any pledge, lien,
assignment, license or other agreement granting to any third party any interest
therein or any right to the use or occupancy of any premises leased thereunder,
(iii) no payments under any Ground Lease are delinquent and no notice of
default thereunder has been sent or received by any Loan Party which has not
been cured or waived prior to the date hereof, and to the best of NMLP’s Knowledge,
there does not exist under any of the Ground Leases any default by any Net
Lease Partnerships or any event which merely with notice or lapse of time or
both, would constitute such a default by any of the Net Lease Partnerships, and
(iv) the basic terms and conditions of each Ground Lease are set forth in Schedule 6.1.18(f),
including, without limitation, all such Ground Lease Extension Options (x)
which have been exercised as of the Closing Date and (y) as to which the final
date to exercise such Ground Lease Extension Option is within the next twelve
(12) months (including all applicable dates by which notices must be provided
in connection with the exercise of same) (the foregoing schedule, as updated
from time to time as provided herein, being referred to as the “Ground Lease
Extension Option Schedule”).

 

(g)                                 Except
to the extent the failure of the following to be true would not result in a
Material Adverse Effect, (i) each Ownership Interest Agreement relating to
a Remainder Ground Lease Option is valid, binding and in full force and effect
as against the applicable Net Lease Partnerships and, to the best of NMLP’s
Knowledge, the other party thereto, (ii) except for tenants under the
Leases and except in connection with security relating to the Mortgage Debt,
none of the Remainder Ground Lease Options is subject to any pledge, lien,
assignment, license or other agreement granting to any third party any interest
therein or any right to the use or occupancy of any premises leased thereunder,

 

47

 

(iii) no payments under
any Ownership Interest Agreement relating to a Remainder Ground Lease Option
are delinquent and no notice of default thereunder has been sent or received by
any NMLP Loan Party which has not been cured or waived prior to the date
hereof, and to the best of NMLP’s Knowledge, there does not exist under any of
the Ownership Interest Agreements relating to the Remainder Ground Lease
Options any default by any Net Lease Partnerships or any event which merely
with notice or lapse of time or both, would constitute such a default by any of
the Net Lease Partnerships, and (iv) the basic terms and conditions of
each Remainder Ground Lease Option are set forth in Schedule 6.1.18(g),
including, without limitation, all such Remainder Ground Lease Options (x)
which have been exercised as of the Closing Date and (y) as to which the final
date to exercise such Remainder Ground Lease Option is within the next twelve
(12) months (including all applicable dates by which notices must be provided
in connection with the exercise of same) (the foregoing schedule, as updated
from time to time as provided herein, being referred to as the “Remainder
Ground Lease Option Schedule”).

 

(h)                                 Schedule (h) accurately
details in all material respects the approximate amount, term, and interest
rate applicable to all Mortgage Debt encumbering the Individual Properties (the
foregoing schedule, as updated from time to time as provided herein, the “Mortgage
Debt Schedule”).  Except as noted on Schedule 6.1.18(h),
no notice of default thereunder has been sent or received by any Loan Party
which has not been cured or waived prior to the date hereof, and to the best of
the Borrower’s Knowledge, there does not exist with respect to any Mortgage
Debt any default by any Net Lease Partnerships or any event which merely with
notice or lapse of time or both, would constitute such a default by any of the
Net Lease Partnerships.  Except for ownership
of the E Certificate Representing First Mortgage Interest (in the GMAC Mortgage
Loan), the F Certificate Representing First Mortgage Interest (in the GMAC
Mortgage Loan), the G Certificate Representing First Mortgage Interest (in the
GMAC Mortgage Loan), and the interests held in the Grantor Trust by T-Two
representing ownership of the Securitized Notes and the Mortgage Debt set forth
in Schedule 6.1.18(h), neither NMLP, any NMLP Loan Party, any NMLP
Subsidiary, nor any Newkirk Group Entity 
owns, directly or indirectly, any material interest in any Mortgage
Debt.

 

(i)                                     Each
of the Net Lease Partnerships is a partnership for federal income tax purposes
and does not constitute a publicly traded partnership within the meaning of Section 7704
of the Code.

 

(j)                                     Each
of the Net Lease Partnerships possesses valid owner’s policy title insurance
from title insurers of recognized financial responsibility on each of the
Individual Properties in amounts not less than the original purchase price of
such properties, and such title insurance is in full force and effect.

 

(k)                                  Except
as set forth in Schedule 6.1.18(k), as to any of the Individual
Properties, there is not pending the exercise of any Economic Discontinuance
Rights by any tenants.

 

48

 

6.1.19          Use of Proceeds.  The proceeds of the NMLP Loan shall be used
solely and exclusively as provided in Section 1.3.2.  No portion of the proceeds of the NMLP Loan
shall be used by NMLP directly or indirectly, and whether immediately, incidentally
or ultimately (i) to purchase or carry any margin stock or to extend
credit to others for the purpose thereof or to repay or refund indebtedness
previously incurred for such purpose, or (ii) for any purpose which would
violate or in inconsistent with the provisions of regulations of the Board of
Governors of the Federal Reserve System including, without limitation,
Regulations G, T, U and X thereof.

 

6.1.20          Insurance. Except
to the extent the failure of the following to be true would not result in a Material
Adverse Effect, (i) to the best of NMLP’s Knowledge, the Individual
Properties are insured by insurers of recognized financial responsibility
against such losses and risks in compliance with the requirements of the Leases
and as set forth in Exhibit E, hereto, such insurance maintained by the
tenants under the Leases; (ii) NMLP has a monitoring system in place to
periodically verify whether the tenants under the Leases have in place
insurance as required by the applicable Lease; and (iii) NMLP has satisfactory
liability insurance in favor of NMLP and each of the NMLP Subsidiaries in
compliance with the requirements of the Administrative Agent in effect on the
date hereof.

 

6.1.21          Deferred Compensation
and ERISA.  Neither NMLP nor any NMLP
Subsidiary has any pension, profit sharing, stock option, insurance or other
arrangement or Plan for employees covered by ERISA except as may be designated
to Administrative Agent in writing by NMLP from time to time and no Reportable
Event has occurred and is now continuing with respect to any such ERISA
Plan.  The granting of the NMLP Loan, the
performance by NMLP, the NMLP Subsidiaries, and/or any of the  Other Partnerships or any of the Partially
Owned Limited Partnerships of their respective obligations under the NMLP Loan
Documents and such Persons’ conducting of their respective operations do not
and will not violate any provisions of ERISA.

 

6.1.22          No Default. There
is no Default on the part of NMLP or any of the other NMLP Loan Parties under
this Agreement or any of the other NMLP Loan Documents and no event has
occurred and is continuing which would constitute a Default under any NMLP Loan
Document.

 

6.1.23          Newkirk Loans.  Newkirk Finco LLC is the holder of the
Administrator LLC Loan, NK-Leyden Loan, L.P. is the holder of the Leyden Note
and NK-Dautec Loan, L.P. is the holder of the Dautec
Note.  Schedule 6.1.23
accurately details the approximate amount, term, and interest rate applicable
to each of the Newkirk Loans.  To the
best of NMLP’s Knowledge, there does not exist with respect to any such loan
any default by any obligor thereunder or any event which merely with notice or
lapse of time or both, would constitute such a default
by any obligor under any Newkirk Loan.

 

6.1.24          Integrated Documents.  (i) True and correct copies of the
Integrated Documents, 
together with all amendments and modifications thereto,

 

49

 

have been delivered to the Administrative
Agent, each of which is in full force and effect; (ii) Schedule 6.1.24
sets forth the only NMLP Collateral as to which a pledge has been granted to
the Integrated Group to secure the Integrated Obligations; (iii) to the
best of NMLP’s Knowledge, there does not exist with respect to the Integrated
Obligations any default by any obligor thereunder or any event which merely
with notice or lapse of time or both, would constitute such a default by any
obligor thereunder; (iv) no notice of default thereunder, indemnification
claim, or claim for payment of any amount due thereunder has been received by
any Loan Party or any Newkirk Group Entity; or threatened by, or on behalf
of,  the Integrated Group, (v) NMLP
has no Knowledge of any event which could lead to any such default,
indemnification claim or claim, and (vi) neither NMLP nor any NMLP
Subsidiary is obligated for the repayment of the Integrated Obligations, other
than Newkirk GP LLC, Newkirk Capital LLC, and Newkirk Finco LLC.

 

6.1.25          Other NMLP Loan
Parties’ Warranties and Representations. 
NMLP has no reason to believe that any warranties or representations
made in writing by any of the NMLP Loan Parties to the Administrative Agent or
any of the Lenders are untrue, incomplete or misleading in any material
respect.

 

6.2                                 T-Two.  T-Two warrants and represents to Administrative
Agent and each of the Lenders for the express purpose of inducing Lenders to
enter into this Agreement, to make the T-Two Loan Advance, and to otherwise
complete all of the transactions contemplated hereby that upon the date of the
T-Two Loan Advance and at all times thereafter until the T-Two Loan has been
repaid and all T-Two Obligations have been satisfied as follows:

 

6.2.1                Formation.  T-Two has been duly formed and is validly
existing and in good standing as a partnership under the laws of the State of
Delaware.  T-Two has the requisite
partnership power and authority, as applicable, to own its assets and conduct
its businesses as currently conducted and owned, and to enter into and perform
its obligations under each T-Two Loan Document and/or Related Document to which
it is a party.  T-Two is in good standing
and authorized to do business in each jurisdiction where the ownership of its
assets and/or the conduct of its business requires
such qualification except where the failure to be so qualified would not have a
Material Adverse Effect.

 

6.2.2                Proceedings;
Enforceability.  T-Two and each T-Two
Loan Party has taken all requisite corporate, partnership or company action, as
applicable, to authorize the execution, delivery and performance by such Person
of the T-Two Loan Documents and/or the Related Documents to which it is a
party.  Each T-Two Loan Document and the
Related Document which is required to be executed and delivered on or prior to
the date on which this representation and warranty is being made has been duly
authorized, executed and delivered and constitutes the legal, valid and binding
obligation of T-Two and each T-Two Loan Party which is a party thereto,
enforceable against each such Person in accordance with its respective terms
except to the extent that the enforceability thereof may be limited by
applicable bankruptcy, insolvency and similar laws affecting rights of
creditors generally and to general principles of equity

 

50

 

(regardless of whether
enforcement is sought in a proceeding in equity or at law).

 

6.2.3                Conflicts.  Neither the execution, delivery and
performance of the Loan Documents and the Related Documents by T-Two, any T-Two
Loan Party or compliance by any such Person with the terms and provisions
thereof (including, without limitation, the granting of Liens pursuant to the
T-Two Security Documents), (i) will contravene any provision of any law,
statute, rule or regulation or any order, writ, injunction or decree of any
court or governmental instrumentality, (ii) will conflict with or result
in any breach of any of the terms, covenants or conditions of, or constitute a
default under, or result in the creation or imposition (or the obligation to
create or impose) of any Lien (except pursuant to the T-Two Security Documents
and the Call Option Agreement) upon any of the property or assets of any such
Person pursuant to the terms of any indenture, mortgage, deed of trust, credit
agreement or loan agreement or any other agreement, contract or instrument to
which any such Person is a party or by which it or any of its properties or
assets is bound or to which it may be subject or (iii) will violate any
provision of any Formation Document of any such Person.

 

6.2.4                Ownership and
Taxpayer Identification Numbers.

 

(a)                                  All
of the partners, owners, stockholders, and members, respectively and as may be
applicable, of T-Two are listed in Exhibit F.  The exact correct name and organizational
number(s) and federal employer identification number(s) of T-Two and each T-Two
Loan Party are accurately stated in Exhibits F, L and M.

 

(b)                                 T-Two
does not directly hold any stock, membership, partnership or ownership interest
in any other Person, with the exception of its ownership of the Grantor Trust T-1
Certificate and Grantor Trust T-2 Certificate.

 

6.2.5                Litigation.
Except as set forth in Schedule 6.2.5, there are no actions, suits
or proceedings at law or in equity or by or before any governmental
instrumentality or other agency or regulatory authority by any entity (private
or governmental) pending or, to the best of T-Two’s Knowledge, threatened with
respect to the T-Two Loan, the transactions contemplated in the T-Two Loan
Documents, the Related Documents, or T-Two, which could reasonably be expected
to have a Material Adverse Effect.

 

6.2.6                Information.  All factual information furnished by or on
behalf of T-Two to the Administrative Agent and/or any of the Lenders
(including, without limitation, all information contained in the T-Two Loan
Documents) for purposes of or in connection with this Agreement, the other
T-Two Loan Documents or any transaction contemplated herein or therein is, and
all other such factual information hereafter furnished by or on behalf of T-Two
to the Administrative Agent and/or any of the Lenders will be, true and
accurate in all material respects on the date as of which such information is
dated or certified and to the best of the T-Two’s Knowledge, not incomplete by
omitting to state

 

51

 

any fact necessary to make such
information not misleading in any material respect at such time in light of the
circumstances under which such information was provided.

 

6.2.7                Taxes.  T-Two has made all required tax filings and
have paid all federal, state and local taxes applicable to it and/or its
assets, except if contested in accordance with Section 9.1.

 

6.2.8                Financial
Information.  The financial
statements of T-Two provided to the Administrative Agent present fairly the
financial conditions of T-Two at the dates of such statements of financial
condition and the results of operations for the periods covered thereby.  Since the dates of the relevant financial
statements, no change has occurred which could have or reasonably be expected
to have a Material Adverse Effect.

 

6.2.9                Formation
Documents.  T-Two has delivered or
caused to be delivered to the Administrative Agent true and complete copies of
all Formation Documents of the T-Two Loan Parties, and all amendments thereto
as of the date hereof and as of the date of the T-Two Loan Advance.

 

6.2.10          Related Documents.
 To the extent not provided for otherwise
in this Article 6, true and correct copies of all other Related Documents
have been delivered to the Administrative Agent, each of which is in full force
and effect and no material default has occurred thereunder.

 

6.2.11          Bankruptcy Filings.  Neither T-Two, nor any T-Two Loan Party is
contemplating either a filing of a petition under any state or federal
bankruptcy or insolvency laws or the liquidation of all or a major portion of
its assets or property, and T-Two has no Knowledge of any Person contemplating
the filing of any such petition against any of T-Two or any T-Two Loan Party.

 

6.2.12          Options.  No Person holds a right of first refusal or
option to purchase with respect to any item of T-Two Collateral, other than as
set forth in the Call Option Agreement.

 

6.2.13          Investment Company.  Neither T-Two, nor any T-Two Loan Party, is
an “investment company” or a company “controlled” by an “investment company,”
within the meaning of the Investment Company Act of 1940, as amended.

 

6.2.14          Holding Company.  Neither T-Two, nor any T-Two Loan Party is a “holding
company,” or a “subsidiary company” of a “holding company,” or an “affiliate”
of a “holding company” or of a “subsidiary company” of a “holding company,”
within the meaning of the Public Utility Holding Company Act of 1935, as
amended.

 

6.2.15          Securitization
Documents.  (a) The
Securitization Documents have not been amended, terminated or rescinded in any
material respect, and remain in full force and effect; (b) the Grantor
Trust Trustee is the holder of the

 

52

 

Securitized Notes and
Securitized Mortgages; (c) T-Two is the sole and direct beneficial owner
of the Grantor Trust, the Grantor Trust T-2 Certificate and the Grantor Trust T-1
Certificate, free and clear of any Liens other than pursuant to the Call Option
Agreement; (d) to the best of T-Two’s Knowledge, none of the current
payors is in default under any Securitized Note or Securitized Mortgage and
T-Two does not know of any event which, but for the passage of time or the
giving of notice, or both, would constitute a default under any of such
Securitized Note or Securitized Mortgage; and (e) Schedule 6.2.15
accurately details the current mortgagor (and proportionate direct and/or
indirect ownership interest of NMLP therein), property location, current
principal amount, current Discounted Payment Option amount (as applicable),
term, and interest rate applicable to all Securitized Notes (the foregoing
schedule, as updated from time to time as provided herein, the “Securitized
Note Schedule”).

 

6.2.16          Use of Proceeds.  The proceeds of the T-Two Loan shall be used
solely and exclusively as provided in Section 1.4.  No portion of the proceeds of the T-Two Loan
shall be used by T-Two directly or indirectly, and whether immediately,
incidentally or ultimately (i) to purchase or carry any margin stock or to
extend credit to others for the purpose thereof or to repay or refund
indebtedness previously incurred for such purpose, or (ii) for any purpose
which would violate or in inconsistent with the provisions of regulations of
the Board of Governors of the Federal Reserve System including, without
limitation, Regulations G, T, U and X thereof.

 

6.2.17          Insurance.  Except to the extent the failure of the
following to be true would not result in a Material Adverse Effect, (i) to
the best of T-Two’s Knowledge, the Securitized Properties are insured by
insurers of recognized financial responsibility against such losses and risks
in compliance with the requirements of the Leases and as set forth in Exhibit E,
hereto, such insurance maintained by the tenants under the Leases; and (ii) T-Two
has a monitoring system in place to periodically verify whether the tenants
under the Leases have in place insurance as required by the applicable Lease.

 

6.2.18          Deferred Compensation
and ERISA.  T-Two has no pension,
profit sharing, stock option, insurance or other arrangement or Plan for
employees covered by ERISA except as may be designated to Administrative Agent
in writing by NMLP from time to time and no Reportable Event has occurred and
is now continuing with respect to any such ERISA Plan.  The granting of the T-Two Loan, the
performance by T-Two or any T-Two Loan Party of their respective obligations
under the T-Two Loan Documents and such Persons’ conducting of their respective
operations do not and will not violate any provisions of ERISA.

 

6.2.19          No Default.  There is no Default on the part of T-Two or
any of the other T-Two Loan Parties under this Agreement or any of the other
T-Two Loan Documents and no event has occurred and is continuing which would
constitute a Default under any T-Two Loan Document.

 

53

 

6.2.20          Other T-Two Loan
Parties’ Warranties and Representations. 
T-Two has no reason to believe that any warranties or representations
made in writing by any of the T-Two Loan Parties to the Administrative Agent or
any of the Lenders are untrue, incomplete or misleading in any material
respect.

 

ARTICLE 7

 

AFFIRMATIVE COVENANTS.

 

7.1                                 NMLP.  NMLP covenants and agrees that from the date
hereof and so long as any indebtedness is outstanding hereunder, or any of the
NMLP Loan or other NMLP Obligations remains outstanding, as follows:

 

7.1.1                Notices.  NMLP shall, with reasonable promptness, but in
all events within five (5) days after it has actual Knowledge thereof,
notify Administrative Agent and each of the Lenders in writing of the
occurrence of any act, event or condition which constitutes a Default or Event
of Default under any of the NMLP Loan Documents.  Such notification shall include a written
statement of any remedial or curative actions which NMLP proposes to undertake
and/or to cause any of the other NMLP Loan Parties to undertake to cure or
remedy such Default or Event of Default.

 

7.1.2                Financial
Statements; Reports; Officer’s Certificates.  NMLP shall furnish or cause to be furnished
to Administrative Agent as set forth herein from time to time, the following
financial statements, reports, certificates, and other information, all in
form, manner of presentation and substance acceptable to Administrative Agent
and each of the Lenders:

 

(a)                                  Annual
Statements.

 

(i)                                     Within
ninety (90) days after the close of each fiscal year of NMLP, the consolidated
statements of financial condition of NMLP and all non-consolidated NMLP
Subsidiaries as at the end of such fiscal year and the related consolidated
statements of income and retained earnings and statements of changes in
financial position for such fiscal year, in each case, commencing with the
Fiscal Year ending December 31, 2005, setting forth comparative for the
preceding fiscal year and certified by Imowitz, Koenig & Co. LLP,
Deloitte Touche, LLP or such other independent certified public accountants of
recognized national standing reasonably acceptable to the Administrative Agent,
in each case together with a report of such accounting firm stating that in the
course of its regular audit of the financial statements of such Party, which
audit was conducted in accordance with GAAP, consistently applied, such
accounting firm obtained no knowledge of any Default or Event of Default which
has occurred and is continuing or, if in the opinion of such accounting firm
such a Default or Event of Default has occurred and is continuing, a statement
as to the nature thereof; such financial statements to include and to be
supplemented by such detail and supporting data and

 

54

 

schedules as Administrative
Agent may from time to time reasonably determine; and

 

(ii)                                  Within
ninety (90) days after the close of each fiscal year of NMLP, the statements of
financial condition of each NMLP Subsidiary as at the end of such fiscal year
and the related statements of income and retained earnings and statements of
changes in financial position for such fiscal year, in each case, commencing
with the Fiscal Year ending December 31, 2005, setting forth comparative
figures for the preceding fiscal year, internally prepared in accordance with
GAAP, all in form and manner of presentation acceptable to Administrative Agent,
such financial statements to include and to be supplemented by such detail and
supporting data and schedules as Administrative Agent may from time to time
reasonably determine, together with an Officer’s Certificate from NMLP
certifying that such financial statements are true, accurate, and complete in
all material respects and that no Default or Event of Default has occurred and
is continuing.

 

(b)                                 Periodic
Statements  Within sixty (60) days
after the close of each Fiscal Quarter (except for the quarter ending on December 31),
the following: (i) the consolidated statements of financial condition of
NMLP and all non-consolidated NMLP Subsidiaries, internally prepared in
accordance with GAAP, consistently applied, as at the end of such quarterly
period and the related consolidated statements of income and retained earnings
and statements of changes in financial position for such quarterly period and
for the elapsed portion of the Fiscal Year ended with the last day of such
quarterly period, in each case commencing with the Fiscal Year ending December 31,
2005, setting forth comparative figures for the related periods in the prior
fiscal year, subject to normal year-end audit adjustments, all in form and
manner of presentation acceptable to Administrative Agent, such financial
statements to include and to be supplemented by such detail and supporting data
and schedules as Administrative Agent may from time to time reasonably
determine,  (ii) an Officer’s
Certificate from NMLP certifying that such financial statements are true,
accurate, and complete in all material respects and that no Default or Event of
Default has occurred and is continuing, and (iii) an updated Cash Flow
Projection specifically identifying, without limitation, (a) any changes
to the Cash Flow Projections provided in the then prior Officer’s Certificate
and (b) any Distributions by NMLP Subsidiaries projected during the next
one-hundred and eighty (180) days.

 

(c)                                  Compliance
Certificates.  Within sixty (60) days
(or ninety (90) days in the case of the fourth fiscal quarter) after the close
of each quarterly accounting period in each Fiscal Year of NMLP, Compliance
Certificates in the form of Exhibit G-1 and Exhibit G-3,
annexed hereto, together with an Officer’s Certificate from NMLP providing and
otherwise certifying with respect to the following:

 

(i)                                     the
compliance with the Financial Covenants, with such supporting detail as is
deemed necessary by the Administrative Agent to verify the calculations
incorporated therein;

 

55

 

(ii)                                  any
changes to the Lease Schedule, including, without limitation, specific
identification of (a) any Leases which will expire within one (1) calendar
year from the date of the respective Officer’s Certificate and the applicable
dates and conditions by and upon which such term may be extended, (b) any
material defaults then existing under any Lease of which NMLP has Knowledge not
included in a prior Officer’s Certificate or Lease Schedule, (c) any
Leases as to which the term thereof has expired since the date of the then
prior Officer’s Certificate, without the extension thereof, of which NMLP has
Knowledge, (d) any Leases as to which the tenant has vacated the subject
premises since the date of the then prior Officer’s Certificate, of which NMLP
has Knowledge, (e) any Leases or commitments to lease entered into since
the date of the then prior Officer’s Certificate, and (f) an updated
summary of any pending exercise by any tenant under a Lease of Economic
Discontinuance Rights from the date of the then prior Officer’s Certificate,
including, without limitation, (i) the identity of the subject Individual
Property, (ii) the date  by which
the relevant Net Lease Partnership must reject the Rejectable Offer, and (iii) the
current calculation of the applicable 
Rejection Test with such supporting detail as is deemed necessary by the
Administrative Agent to verify the calculations incorporated therein;

 

(iii)                               any
changes to the Ground Lease Extension Option Schedule, including, without
limitation, (a) specific identification of all Ground Lease Extension
Options (i) which have been exercised since the date of the then prior
Officer’s Certificate, and (ii) as to which the final date for exercising
such Ground Lease Extension Option is within the twelve (12) months following
the date of the Officer’s Certificate (including all applicable dates by which
notices must be provided in connection with the exercise of same), and (b) any
defaults then existing under any Ground Lease not included in a prior Officer’s
Certificate or Ground Lease Extension Option Schedule;

 

(iv)                              any
changes to the Remainder Ground Lease Options Schedule, including, without
limitation, (a) specific identification of all Remainder Ground Lease
Options (i) which have been exercised since the date of the then prior
Officer’s Certificate and (ii) as to which the final date for exercising
such remainder Ground Lease Option is within the twelve (12) months following
the date of the Officer’s Certificate (including all applicable dates by which
notices must be provided in connection with the exercise of same), (b) any
defaults then existing under any Ownership Interest Agreement relating to a
Remainder Ground Lease Option not included in a prior Officer’s Certificate or
Remainder Ground Lease Option Schedule, and (c) a listing of any
remainderman interests or ground lessor interests in Ground Leases (i) acquired
by NMLP, a NMLP Subsidiary, or a Newkirk Group Entity since the date of the
then prior Officer’s Certificate, together with specific detail as to the
nature of the interest acquired and the Person to whom the interest was
transferred, and

 

56

 

(ii) as to which an
agreement has been entered into since the date of the then prior Officer’s
Certificate for the acquisition thereof by NMLP, a NMLP Subsidiary, or a
Newkirk Group Entity, together with the primary terms of such agreement;

 

(v)                                 any
changes to the Mortgage Debt Schedule, including, without limitation, (a) any
prepayments made on any Mortgage Debt since the date of the then prior Officer’s
Certificate, (b)  specific identification of all Mortgage Debt which
matures within the twelve (12) months following the date of the Officer’s
Certificate, (c) any refinancing of such Mortgage Debt which has occurred
(or for which an application has been made or a loan commitment received) since
the date of the then prior Officer’s Certificate, together with a summary of
the use and disbursement of the proceeds thereof, (d) any defaults then
existing under any Mortgage Debt not included in a prior Officer’s Certificate
or Mortgage Debt Schedule, and (e) the current calculation of the  Mortgage Debt Test with such supporting
detail as is deemed necessary by the Administrative Agent to verify the
calculations incorporated therein;

 

(vi)                              a
listing of any Individual Properties (a) sold by the applicable Net Lease
Partnership since the date of the then prior Officer’s Certificate, together
with specific detail as to the use and disbursement of the proceeds of the
sale, and (b) as to which an agreement has been entered into since the
date of the then prior Officer’s Certificate for the sale thereof, together
with the primary terms of such agreement;

 

(vii)                           a
listing of any material assets acquired, or as to which an agreement to acquire
has been entered into, by NMLP, any NMLP Subsidiary or any NMLP Loan Party
(except the Excepted Loan Parties) since the date of the then prior Officer’s
Certificate, together with the primary terms of such acquisition or agreement;

 

(viii)                        any
changes to Schedule 6.1.23 including, without limitation, (a) any
payments made on account of the Newkirk Loans since the date of the then prior
Officer’s Certificate and (b) any defaults then existing under any Newkirk
Loans not included in a prior Officer’s Certificate or Schedule 6.1.23;

 

(ix)                                a
listing of any Other Partnerships as to which consent has been obtained since
the date of the then prior Officer’s Certificate from a sufficient percentage
of the limited partners thereof to merge such Other Partnership into a NMLP
Partnership;

 

(x)                                   except
as disclosed in such Officer’s Certificate, to the extent of the Knowledge of
such officer, a certification that all insurance premiums in respect of
insurance policies covering the properties owned (directly or indirectly) by
the Net Lease Partnerships have been paid or are not past due more than sixty
(60) days, all debt service payments in respect of any Mortgage Debt of any Net
Lease Partnership have been

 

57

 

made and all real estate taxes
and other impositions relating to any Net Lease Partnership or its related
assets have been paid; and

 

(xi)                                a
summary of the status of any pending insurance claims or condemnation award
proceedings.

 

(d)                                 Data
Requested.  Within a reasonable
period of time and from time to time such other financial data or information
as Administrative Agent may reasonably request with respect to the Individual
Properties, NMLP, any other NMLP Subsidiary, and/or the other NMLP Loan Parties
(except the Excepted Loan Parties), including, but not limited to, rent rolls,
aged receivables, aged payables, leases, budgets, forecasts, reserves, cash
flow projections, deposit accounts, mortgage 
information, physical condition of the Individual Properties and pending
lease proposals.

 

(e)                                  Tax
Returns.  Upon Administrative Agent’s
request, copies of all federal and state tax returns of NMLP and, to the extent
prepared and filed, 
the other NMLP Subsidiaries.

 

(f)                                    Lease
Notices.  Concurrently with the
giving thereof, and within ten (10) Business Days of receipt thereof,
copies of all notices, other than routine correspondence, given or received by
NMLP, any Net Lease Partnership or other NMLP Subsidiary with respect to any
Lease.

 

(g)                                 Mortgage
Notices.  Concurrently with the
giving thereof, and within ten (10) Business Days of receipt thereof,
copies of all notices, other than routine correspondence, given or received by
NMLP, any Net Lease Partnership, or other NMLP Subsidiary with respect to any
Mortgage Debt.

 

(h)                                 Ground
Lessor/Remainder Interest Notices. 
Concurrently with the giving thereof, and within ten (10) Business
Days of receipt thereof, copies of all notices, other than routine
correspondence, given or received by NMLP, any Net Lease Partnership or other
NMLP Subsidiary (including, without limitation, NK-Remainder Interest LLC) with
respect to any Ownership Interest Agreement, Ground Lease Extension Option,
and/or Remainder Ground Lease Option.

 

(i)                                     Entity
Notices.  Concurrently with the
issuance thereof, copies of all written notices (excluding routine
correspondence) given to the partners, owners, stockholders, and/or members,
respectively, of NMLP and/or the Other Partnerships and/or any Partially Owned
Limited Partnerships.

 

(j)                                     Notice
of Distributions.  Concurrently with
the giving thereof, and within ten (10) Business Days of receipt thereof,
copies of all notices of Distributions to the extent given by any NMLP
Subsidiaries to NMLP. NMLP shall provide the Administrative Agent with
immediate written notice in the event that NMLP or any NMLP Subsidiary
determines (or reasonably should be able to determine) that the Cash Flow
Projections are no longer accurate and could reasonably be expected to have a
Material Adverse Effect.

 

58

(k)                                  Property
Acquisition or Sale.  Within ten (10) Business
Days of receipt thereof, copies of all proposed contracts, agreements, or
offers in any way relating to a proposed sale or acquisition of any material
asset by the NMLP or any NMLP Subsidiary.

 

(l)                                     Notices
Regarding NMLP Payment Direction Letters. 
Within ten (10) Business Days of receipt thereof, copies of all
notices (excluding routine correspondence) received by the NMLP, any NMLP
Subsidiary or any other NMLP Loan Party (except the Newkirk Indemnitor and the
MLP Holders) from any Paying Agent or any other Person who has agreed to the
direction of the payment of funds as provided for in a Payment Direction
Letter.

 

(m)                               Notice
of Termination of Payment Direction Letter.  Promptly, and in any event within ten (10) Business
Days after an officer of NMLP obtains Knowledge thereof, written notice of the
termination of any Payment Direction Letter, together with evidence of the
satisfactory reinstatement or replacement thereof in accordance with the terms
and conditions hereof.

 

(n)                                 Notices
under Securitization Documents. 
Within ten (10) Business Days of receipt thereof, copies of all
notices received by NMLP, any other NMLP Subsidiary or any other NMLP Loan
Party (except the Newkirk Indemnitor and the MLP Holders) from any agent,
trustee or servicer under the Securitization Documents, including, without
limitation, any notice to the holder of the Grantor Trust T-1 Certificate or
the Grantor Trust T-2 Certificate as to the request that such holder exercise
any direction, consent or approval rights in such holder’s favor as provided
for in the Securitization Documents.

 

(o)                                 Notices
and Reports re: Integrated Group.

 

(i)                                     Within
ten (10) Business Days of receipt thereof, copies of all notices received
by NMLP, any other NMLP Subsidiary or any other Newkirk Group Entity with
respect to a default under the Integrated Documents, a claim for
indemnification or other payment thereunder, or other non-performance and/or
exercise (or intended exercise) of the rights of the Integrated Group
thereunder.

 

(ii)                                  Immediately
upon the forwarding of any reports required under the Integrated Documents to
the Integrated Group, copies of any such reports.

 

(iii)                               Immediately
after NMLP obtains Knowledge thereof, notice of (a) the release of any
collateral held by the Integrated Group to secure the Integrated Obligations,
or (b) the termination of the “Non-Transfer Period” as set forth in the
Integrated Documents.

 

(p)                                 Third
Party Default Notices.  Immediately
upon notice or receipt thereof by NMLP, the NMLP Loan Parties (except the
Excepted Loan Parties), and/or the NMLP Subsidiaries, copies of all notices of
default, other non-performance,

 

59

 

and/or
exercise (or intended exercise) relating in any way to any one or more of the
Related Documents.

 

(q)                                 Notice
of Litigation.  Promptly, and in any
event within ten (10) Business Days after NMLP obtains Knowledge thereof,
written notice of any pending or, to the best of NMLP’s Knowledge, threatened
action, suit or proceeding at law or in equity or by or before any governmental
instrumentality or other agency or regulatory authority by any entity (private
or governmental) relating in any way to the Loan, the T-Two Loan, the
transactions contemplated in the NMLP Loan Documents (including, without
limitation, with regard to all Distributions), the Related Documents, or
relating to NMLP, any other NMLP Loan Party, or any other NMLP Subsidiary,
which could reasonably be expected to have a Material Adverse Effect.

 

(r)                                    Notice
of Hazardous Materials.  Promptly,
and in any event within ten (10) Business Days after NMLP obtains
Knowledge thereof, written notice of (i) any Release (as defined in the
Environmental Indemnity) or Threat of Release (as defined in the Environmental
Indemnity) of Hazardous Materials on, in, under or affecting all or any portion
of any Individual Property or (ii) the violation of any Environmental Law,
in each case which could reasonably be expected to have a Material Adverse
Effect.

 

7.1.3                Existence.  NMLP shall do or cause to be done all things
necessary to (i) preserve, renew and keep in full force and effect (x) the
partnership, company or corporate existence, as applicable, of each NMLP
Subsidiary and (y) the material rights, licenses, permits and franchises of
each NMLP Subsidiary, (ii) comply with all laws and other Legal
Requirements applicable to it and its assets, business and operations, and (iii) to
the extent applicable, at all times maintain, preserve and protect all material
franchises and trade names and all the remainder of its property used or useful
in the conduct of its business, and keep its assets in good working order and
repair, ordinary wear and tear excepted, and from time to time make, or cause
to be made, all reasonably necessary repairs, renewals, replacements,
betterments and improvements thereto.

 

7.1.4                Payment
of Taxes.  NMLP shall duly pay and
discharge, and cause each NMLP Subsidiary, Other Partnership, or Partially
Owned Limited Partnership to duly pay and discharge, before the same shall
become overdue, all taxes, assessments, impositions, and other governmental
charges payable by it or with respect to the Individual Properties, to the
extent that same are not paid by the tenants under the respective Leases,
except if contested in accordance with Section 9.1.

 

7.1.5                Insurance;
Casualty, Taking.

 

(a)                                  NMLP
shall at all times maintain or cause the appropriate Person to maintain in full
force and effect the following insurance: (i) to the best of NMLP’s
Knowledge, the Individual Properties shall be insured by insurers of recognized
financial responsibility against such losses and risks in compliance

 

60

 

with the Leases and the
requirements set forth in Exhibit E hereto, with such insurance being
maintained by the tenants under the Leases; (ii) NMLP shall have a
monitoring system in place to periodically verify whether the tenants under the
Leases have in place insurance as required by the applicable Lease; and (iii) NMLP
shall have satisfactory liability insurance in favor of NMLP and each of the
NMLP Subsidiaries in compliance with the requirements in effect of the date
hereof; to the extent any such NMLP Subsidiary is a Mortgage Partnership, the
Administrative Agent shall be appropriately noted as mortgage, loss payee and
additional insured with respect to such insurance;

 

(b)                                 Subject
to the terms of Article 14, in the event of any damage or destruction to
any Individual Property (or to the extent now or hereafter applicable, any NMLP
Collateral) by reason of fire or other hazard or casualty, NMLP shall give
immediate written notice thereof to the Administrative Agent. If there is any
condemnation for public use of any Individual Property (or to the extent now or
hereafter applicable, any NMLP Collateral), NMLP shall give immediate written
notice thereof to the Administrative Agent. Further, NMLP shall upon the
request of the Administrative Agent provide to the Administrative Agent with a
report as to the status of any insurance adjustment, condemnation claim, or
restoration resulting from any casualty or taking.

 

7.1.6                Inspection.
 NMLP shall cause the NMLP Subsidiaries
to permit the Administrative Agent and the Lenders and its/their agents,
representatives and employees to inspect the Individual Properties and the NMLP
Collateral at reasonable hours upon reasonable notice, except to the extent
prohibited or otherwise limited in the subject Leases.

 

7.1.7                NMLP
Loan Documents.  NMLP (i) shall
observe, perform and satisfy all the terms, provisions, covenants and
conditions to be performed by it under, and to pay when due all costs, fees and
expenses, and other NMLP Obligations of NMLP to the extent required under, the
NMLP Loan Documents and (ii) shall cause the other NMLP Subsidiaries to
observe, perform and satisfy all the terms, provisions, covenants and
conditions to be performed by such Person under, and to pay when due all costs,
fees and expenses, and other NMLP Obligations to the extent required under, the
NMLP Loan Documents.

 

7.1.8                Further
Assurances.  NMLP shall and shall
cause the NMLP Subsidiaries to execute and deliver to the Administrative Agent
and the other Lenders such documents, instruments, certificates, assignments
and other writings, and do such other acts, necessary or desirable in the
reasonable judgment of the Administrative Agent, to evidence, preserve and/or
protect the NMLP Collateral at any time securing or intended to secure the NMLP
Obligations and do and execute all and such further lawful acts, conveyances
and assurances as the Administrative Agent may reasonably require for the
better and more effective carrying out of the intents and purposes of this
Agreement and the other NMLP Loan Documents.

 

7.1.9                Books
and Records.  NMLP shall and shall
cause the NMLP Subsidiaries to keep and maintain in accordance with GAAP (or
such other

 

61

 

accounting basis reasonably
acceptable to the Administrative Agent), proper and accurate books, records and
accounts reflecting all of the financial affairs of the NMLP and such other
Persons and all items of income and expense in connection with their respective
business and operations and in connection with any services, equipment or
furnishings provided in connection with the operation of the business of the
NMLP and such Persons, whether such income or expense is realized thereby or by
any other Person.  The Administrative
Agent shall have the right, not more than once each quarter (unless an Event of
Default shall have occurred and be continuing in which case as often as the Administrative
Agent shall determine), during normal business hours and upon reasonable
notice, to examine such books, records and accounts of NMLP and the NMLP
Subsidiaries at the office of the Person maintaining such books, records, and
accounts and to make such copies or extracts thereof as the Administrative
Agent shall desire. NMLP shall maintain all of its business records at the
address specified at the beginning of this Agreement, subject to change upon
advance written notification to the Administrative Agent.  The Administrative Agent may discuss the
financial and other affairs of the NMLP, the NMLP Subsidiaries, Other
Partnerships, and Partially Owned Limited Partnerships with any of their
respective partners, owners, and any accountants (as to accountants, prior to
the occurrence of an Event of Default and following the cure of any Event of
Default, upon prior approval of the NMLP, not to be unreasonably withheld, and
at the cost and expense of the Administrative Agent and the Lenders) hired by
NMLP, it being agreed that Administrative Agent and each of the Lenders shall
use best efforts to not divulge information obtained from such examination to
others except in connection with Legal Requirements and in connection with
administering the NMLP Loan, enforcing its rights and remedies under the NMLP
Loan Documents and in the conduct, operation and regulation of its banking and
lending business (which may include, without limitation, the transfer of the
Loan or of participation interests therein). 
Any assignee or transferee of the NMLP Loan, co-lender, or any holder of
a participation interest in the NMLP Loan shall be entitled to deal with such
information in the same manner and in connection with any subsequent transfer
of its interest in the NMLP Loan or of further participation interests therein.

 

7.1.10          Business
and Operations.  NMLP shall (and
shall cause the NMLP Subsidiaries to) (i) continue to engage in the type
of businesses presently conducted by them as of the Closing Date, respectively,
as and to the extent the same are necessary for the ownership of, and
preservation of the value and utility of, the NMLP Collateral and the
Individual Properties, and (ii) be qualified to do business and in good
standing under the laws of each jurisdiction, and otherwise to comply with all
Legal Requirements, as and to the extent the same are required for the
ownership, maintenance, management and operation of the assets of such Person
except where the failure to be so qualified could not reasonably be expected to
have a Material Adverse Effect.

 

7.1.11          Title.  NMLP shall and shall cause the NMLP
Subsidiaries to warrant and defend (x) the title to each item of NMLP
Collateral owned by such Person and every part thereof, subject only to the
Liens (if any) permitted

 

62

 

hereunder, (y) the validity and
priority of the Liens and security interests held by the Administrative Agent
pursuant to the NMLP Loan Documents, in each case against the claims of all
Persons whomsoever, and (z) the title to and in the Individual Properties,
subject only to the Mortgage Debt. NMLP shall be responsible to reimburse the Administrative
Agent and the Lenders for any losses, costs, damages or expenses (including
reasonable attorneys’ fees and court costs) incurred by the Administrative
Agent and/or any of the Lenders if an interest in any item of NMLP Collateral,
other than as permitted hereunder, is claimed by another Person.

 

7.1.12          Estoppel.  NMLP shall (and shall cause the NMLP
Subsidiaries to), within ten (10) days after a request therefor from the Administrative
Agent, which request shall not be made by Administrative Agent more than once
each quarter during each Fiscal Year, furnish to the Administrative Agent a
statement, duly acknowledged and certified, setting forth (i) the amount
then owing by NMLP in respect of the NMLP Obligations, (ii) the date
through which interest on the NMLP Loan has been paid, (iii) any offsets,
counterclaims, credits or defenses to the payment by NMLP or any NMLP
Subsidiary to the NMLP Obligations and (iv) whether any written notice of
Default from Administrative Agent to NMLP or any of the NMLP Subsidiaries is
then outstanding and acknowledging that this Agreement and the other NMLP Loan
Documents are in full force and effect and unmodified, or if modified, giving
the particulars of such modification.

 

7.1.13          ERISA.  NMLP shall (and shall cause each of the NMLP
Subsidiaries to) as soon as possible and, in any event, within ten (10) days
after NMLP, any NMLP Subsidiary or any ERISA Affiliate knows or has reason to
know of the occurrence of any of the following which could have or reasonably
be expected to have a Material Adverse Effect, deliver to Administrative Agent
a certificate of the an executive officer of NMLP setting forth details as to
such occurrence and the action, if any, that the applicable NMLP or NMLP
Subsidiary or such ERISA Affiliate is required or proposes to take, together
with any notices required or proposed to be given to or filed with or by such
NMLP, NMLP Subsidiary, the ERISA Affiliate, the PBGC, a Plan participant or the
Plan administrator with respect thereto: 
(i) that a Reportable Event has occurred; (ii) that an
accumulated funding deficiency has been incurred or an application may be or
has been made to the Secretary of the Treasury for a waiver or modification of
the minimum funding standard (including any required installment payments) or
an extension of any amortization period under Section 412 of the Code with
respect to a Plan; (iii) that a contribution required to be made to a Plan
has not been timely made; (iv) that a Plan has been or may be terminated,
reorganized, partitioned or declared insolvent under Title IV of ERISA; (v) that
a Plan has an Unfunded Current Liability giving rise to a lien under ERISA or
the Code; (vi) that proceedings may be or have been instituted to
terminate or appoint a trustee to administer a Plan; (vii) that a
proceeding has been instituted pursuant to Section 515 of ERISA to collect
a delinquent contribution to a Plan; (viii) that NMLP, NMLP Subsidiary, or
ERISA Affiliate will or may incur any liability (including any indirect,
contingent, or secondary

 

63

 

liability) to or on account of
the termination of or withdrawal from a Plan under Sections 4062, 4063, 4064,
4069, 4201, 4204 or 4212 of ERISA or with respect to a Plan under Sections
401(a)(29), 4971, 4975 or 4980 of the Code or Sections 409 or 502(i) or
502(l) of ERISA; (ix) or that NMLP or NMLP Subsidiary may incur any
material liability pursuant to any employee welfare benefit plan (as defined in
Section 3(l) of ERISA) that provides benefits to retired employees or other
former employees (other than as required by Section 601 of ERISA) or any
employee pension benefit plan (as defined in Section 3(2) of
ERISA).  NMLP shall (and shall cause the
NMLP Subsidiaries to) deliver to Administrative Agent a complete copy of the annual
report (Form 5500) of each Plan required to be filed with the Internal
Revenue Service.  In addition to any
certificates or notices delivered to the Administrative Agent pursuant to the
first sentence hereof, copies of any material notice received by any of NMLP, a
NMLP Subsidiary, or any ERISA Affiliate with respect to any Plan shall be
delivered to the Administrative Agent no later than ten (10) days after
the date such notice has been received by such NMLP or NMLP Subsidiary or ERISA
Affiliate, as applicable.

 

7.1.14          Depository
Accounts. NMLP shall (and shall cause each of the NMLP Subsidiaries and the
other NMLP Loan Parties (except the Excepted Loan Parties) to (i) maintain
all operating and other depository accounts, if any, with either the Administrative
Agent or the Deposit Account Co-Agent (or any successor thereto) (singly and
collectively, including the NMLP Depository Accounts and the Reinvestment
Account, the “NMLP Accounts”), such NMLP Accounts as of the date hereof listed
on Exhibit R, annexed hereto, unless otherwise agreed by Administrative
Agent in writing, except for the accounts maintained by any of the NMLP
Subsidiaries in connection with the GMAC Mortgage Loan, (ii) except for
the NMLP Partnership GP’s, NMLP GP, and Newkirk MLP Corp., maintain a minimum
of one depository account for each such Person) with either the Administrative
Agent or the Deposit Account Co-Agent (or any successor thereto) (singly and
collectively, the “NMLP Depository Accounts”), unless otherwise agreed by the Administrative
Agent in writing, (iii) except for the GMAC Borrowers, the NMLP
Partnership GP’s, the Borrower GP, Newkirk MLP Corp., and the other NMLP Loan
Parties (which are not NMLP Subsidiaries) execute and deliver such Cash
Management Agreements as Administrative Agent shall deem customary and
appropriate to provide for terms and conditions satisfactory to the Administrative
Agent with respect to the use and disbursement of funds in any NMLP Account,
and (iv) with respect to the GMAC Borrowers, execute and deliver such NMLP
Account disbursement authorizations as the Administrative Agent shall deem
customary and appropriate to provide for the disbursement by the Administrative
Agent of any funds in the NMLP Depository Account in the name of any GMAC Borrower
to the NMLP Depository Account in the name of the NMLP after and during the
continuance of any period in which there is any Event of Default.  Each of the NMLP Accounts (except those in
the name of any NMLP Partnership as to which there remains unpaid any First
Mortgage Debt or Other Second Mortgage Debt, any Partially Owned Limited
Partnership, Newkirk

 

64

 

Capital LLC, or Newkirk Asset
Management LLC) shall be subject to the NMLP Deposit Account Pledge and
Security Agreement.

 

7.1.15          Cash
Flow; NMLP Payment Direction Letters.

 

(a)                                  NMLP
agrees that appropriate procedures satisfactory to the Administrative Agent
will be put in place such that (i) any Distributions by any NMLP
Subsidiary payable to NMLP shall be directly deposited in the designated NMLP
Depository Account in the name of NMLP, and (ii) except for the Other
Partnerships, the Partially Owned Limited Partnerships, NK-Leyden Loan,
L.P.,  or NK-Dautec Loan, L.P., any other
Distributions or other revenues or payments received by NMLP or any NMLP
Subsidiary or any other NMLP Loan Party (except the Excepted Loan Parties)
shall be directly deposited in a designated NMLP Depository Account in the name
of such Person (any such amounts payable to any NMLP Partnership GP shall be
deposited in the NMLP Depository Account of MLP Manager Corp.).

 

(b)                                 NMLP
agrees that appropriate procedures satisfactory to the Administrative Agent
will be put in place such that after the occurrence and during the continuance
of an Event of Default, subject to any limitations provided for with respect to
any Mortgage Debt, or the Integrated Documents (as to Newkirk GP LLC, Newkirk
Capital LLC and Newkirk Finco LLC): (i) any Distributions and other
revenues due or payable to any Borrower Subsidiary (except NK-Leyden Loan, L.P.
or NK-Dautec Loan, L.P.) shall be paid directly in to the designated NMLP
Depository Account in the name of NMLP or as otherwise directed by the Administrative
Agent, and (ii) any Distributions by any NMLP Subsidiary payable to NMLP
shall be directly deposited in the designated NMLP Depository Account in the
name of NMLP or as otherwise directed by the Administrative Agent.  Further, subject to any limitations provided
for with respect to any Mortgage Debt or the Integrated Documents (as to
Newkirk GP LLC, Newkirk Capital LLC and Newkirk Finco LLC), after the
occurrence and during the continuance of an Event of Default, Administrative
Agent shall have the right to receive any and all such Distributions or other revenues
and make application thereof to the Obligations.

 

(c)                                  The
use and disbursement of all funds in the NMLP Depository Accounts and the NMLP
Accounts shall be subject to the terms and provisions hereof and the Cash
Management Agreement.

 

(d)                                 NMLP
agrees that to the extent that NMLP, any NMLP Subsidiary (except NK-Leyden
Loan, L.P. or NK-Dautec Loan, L.P.) or any other NMLP Loan Party (except the
Excepted Loan Parties) receives directly any Distributions or revenues or other
payments which are required to be deposited as provided for herein, NMLP shall,
and shall cause any NMLP Subsidiary (except NK-Leyden Loan, L.P. or NK-Dautec
Loan, L.P.) or any other NMLP Loan Party (except the Excepted Loan Parties) to,
deposit such funds in the applicable designated NMLP Depository Account.

 

65

 

(e)                                  NMLP
shall (and shall cause the other NMLP Subsidiaries (except NK-Leyden Loan, L.P.
or NK-Dautec Loan, L.P.) and NMLP Loan Parties (except the Excepted Loan
Parties)) to maintain in place during the term of the Loan such direction
letters and agreements as the Administrative Agent may from time to time
require in order to effectuate the terms and provisions hereof relating to the
management of the cash flow of NMLP, the NMLP Subsidiaries (except NK-Leyden
Loan, L.P. or NK-Dautec Loan, L.P.) and the NMLP Loan Parties (except the
Excepted Loan Parties) (together with the Paying Agent Agreements and the NMLP
Consents (to the extent that the NMLP Consents provide for the management of
cash flow), the “NMLP Payment Direction Letters”), including, without
limitation, and provided that such NMLP Payment Direction Letters are consistent
with Sections 7.1.15 and 7.2.15 and the following:

 

(i)                                     to
each tenant under a Lease for any Individual Property to pay rent, purchase
prices, and any other amounts payable under such Lease to the holder (or
servicer) of the First Mortgage Debt (if any) thereon, or if such Individual
Property is not subject to any Mortgage Debt, directly to the NMLP Depository
Account of the Net Lease Partnership which owns the subject Individual Property;

 

(ii)                                  for
each NMLP Partnership, with each holder (or servicer) of the First Mortgage
Debt on any Individual Property to pay excess proceeds after debt service to
the applicable (x) for each Individual Property which secures a NMLP
Securitized Note, the Paying Agent pursuant to the applicable Paying Agent
Agreement or (y) for any other Individual Property, to the designated NMLP
Depository Account in the name of the applicable NMLP Partnership or, subject
to the terms of Sections 7.1.15 and 7.2.15, as otherwise may be directed by the
Administrative Agent;

 

(iii)                               with
each Paying Agent for any Individual Property to pay amounts due under the
applicable NMLP Securitized Note to the Grantor Trust;

 

(iv)                              for
each NMLP Partnership, with each Paying Agent to pay amounts in excess of those
required to be paid to the Grantor Trust to a designated NMLP Depository
Account in the name of the applicable NMLP Partnership or, subject to the terms
of Sections 7.1.15 and 7.2.15, as otherwise directed by the Administrative
Agent;

 

(v)                                 with
each NMLP Subsidiary to pay any Distribution or other amount due to NMLP into a
designated NMLP Depository Account in NMLP’s name or, subject to the terms of Sections
7.1.15 and 7.2.15, as otherwise directed by the Administrative Agent;

 

(vi)                              from
and after the date on which the T-Two Loan shall be repaid in full, with the
Grantor Trust to pay any payments to be made on the Grantor Trust T-2
Certificate or the Grantor Trust T-1 Certificate to, or as directed by, the Administrative
Agent;

 

66

 

(vii)                           with
the obligors with respect to the Administrator LLC Loan, and the Amended and
Restated Asset Management Agreement, to pay any amounts received with respect
thereto into a designated NMLP Depository Account in the name of NMLP or the
NMLP Subsidiary entitled to the payment thereof or, subject to the terms of
Sections 7.1.15 and 7.2.15, as otherwise directed by the Administrative Agent;

 

(viii)                        after
the occurrence and during the continuance of an Event of Default, such
additional NMLP Payment Direction Letters so as to direct payment of all funds
due, or Distributions payable, to NMLP and any NMLP Subsidiaries (except
NK-Leyden Loan, L.P. or NK-Dautec Loan, L.P.) into the designated NMLP
Depository Account in the name of NMLP or, subject to the terms of Sections 7.1.15
and 7.2.15, as otherwise directed by the Administrative Agent; and

 

(ix)                                such
other NMLP Payment Direction Letters as Administrative Agent may direct from
time to time in accordance with the provisions of this Agreement and the other
Loan Documents.

 

(f)                                    NMLP
shall (and shall cause the other NMLP Loan Parties (except the Excepted Loan
Parties) and the NMLP Subsidiaries (except NK-Leyden Loan, L.P. or NK-Dautec
Loan, L.P.) to) keep in effect all NMLP Payment Direction Letters, including,
without limitation, any replacements, substitutions, or renewals thereof as the
Administrative Agent shall reasonably deem appropriate from time to time.

 

(g)                                 Notwithstanding
the terms and provisions hereof, the Administrative Agent and NMLP acknowledge
and agree that with respect to any GMAC Borrower and any Individual Property
owned by a GMAC Borrower, (i) the cash flow and lock-box arrangements
established in connection with such GMAC Mortgage Loan shall remain in effect,
shall not be altered or modified by the terms and provisions hereof, and shall
supersede any inconsistent or conflicting provision hereof or of any other NMLP
Loan Document, and (ii) to the extent that NMLP has agreed to, or to cause
any such GMAC Borrower to, direct the payment of any revenues or payments
received by a GMAC Borrower, such agreement shall only relate to such revenues
or payments received by a GMAC Borrower after the release of such funds from
the lock-box arrangement established pursuant to the GMAC Mortgage Loan.

 

7.1.16          Distributions.

 

(a)                                  Subject
to the requirements set forth in clause (h)(xvi) of the definition of “Single-Purpose
Entity” contained herein, NMLP shall cause the NMLP Subsidiaries to make the
maximum amount of all Distributions to NMLP at the earliest opportunity
permitted under the respective Formation Documents of each of the NMLP
Subsidiaries, but not less often than quarterly or within three (3) Business
Days of the receipt of any funds relating to a NMLP Mandatory Prepayment Event
and shall take all actions necessary (and as may be directed by

 

67

 

the Administrative Agent) to
preserve and maintain the Distribution scheme provided for herein.

 

(b)                                 After
the occurrence and during the continuance of an Event of Default, NMLP shall
cause each NMLP Subsidiary (except NK-Leyden Loan, L.P. or NK-Dautec Loan,
L.P.) to pay as a Distribution to NMLP any and all funds and other amounts
available from time to time in the NMLP Depository Account of such NMLP
Subsidiary.

 

(c)                                  NMLP
shall cause the NMLP Subsidiaries to deposit all Distributions made or payable
to NMLP in a designated NMLP Depository Account in the name of NMLP or, subject
to the terms of Section 7.1.15, as otherwise directed by the Administrative
Agent.

 

7.1.17          Exercise
of Ground Lease Extension Options and Remainder Ground Lease Options.  NMLP shall (and shall cause the Net Lease
Partnerships, as applicable, to) do the following with respect to the Ground
Lease Extension Options and the Remainder Ground Lease Options:

 

(a)                                  With
respect to all Ground Lease Extension Options, unless otherwise approved in
writing by the Administrative Agent, NMLP shall provide evidence to the Administrative
Agent of the due exercise of each and every Ground Lease Extension Option at
least thirty (30) days prior to the last date for such exercise (being no less
than ninety (90) days prior to the subject Ground Lease term expiration
date).  In the event that NMLP fails to
provide such evidence to the Administrative Agent in a timely fashion, the Administrative
Agent shall be authorized to exercise the rights provided for in the Escrow
Agreement Respecting Ground Lease Extensions and Lease Options with respect
thereto.

 

(b)                                 With
respect to all Remainder Ground Lease Options, unless otherwise approved in
writing by the Administrative Agent, NMLP shall provide evidence to the Administrative
Agent of the due exercise of each and every Remainder Ground Lease Option,
together with the exercise of such options with respect to the applicable
proposed Ground Lease to establish an initial term thereof which will expire no
earlier than six (6) months after the expiration of the Extended Term, at
least thirty (30) days prior to the last date for such exercise (being no less
than ninety (90) days prior to the termination of the subject land estate
interest).  In the event that NMLP fails
to provide such evidence to the Administrative Agent in a timely fashion, the Administrative
Agent shall be authorized to exercise the rights provided for in the Escrow
Agreement Respecting Ground Lease Extensions and Lease Options with respect
thereto.

 

(c)                                  NMLP
shall provide the Administrative Agent with all instruments, documents, and
agreements requested by the Administrative Agent with respect to foregoing
provisions of this Section .

 

7.1.18          Control
Preservation.  NMLP shall or shall
cause Newkirk GP LLC and any wholly-owned Subsidiary of Newkirk GP LLC to (i) make
all

 

68

 

capital contributions and
expense reimbursements that such Persons may be required to make at any time
and from time to time under the terms of the operating agreements or other
organizational documents of each of the limited liability companies,
corporations or partnerships which, directly or indirectly, own or control an
interest in the general partner of any Other Partnership, any Partially Owned
Limited Partnership or Other Partnership, and (ii) take all actions as may
be necessary to prevent any other partner, officer, member or members of any of
those limited liability companies, corporations or partnerships from exercising
any or all of the management or control rights presently held in their
respective capacities, to establish direct or indirect control of the general
partner of any Other Partnership, Partially Owned Limited Partnership or Other
Partnership.

 

7.1.19          Costs
and Expenses.  NMLP shall pay all
costs and expenses (excluding salaries or wages of employees of Administrative
Agent) reasonably incurred by Administrative Agent in connection with the
implementation and syndication of the NMLP Loan and the administration of the
NMLP Loan, and reasonably incurred by the Administrative Agent or any of the
Lenders in connection with the enforcement of the Administrative Agent’s and
Lenders’ rights under the NMLP Loan Documents, including, without limitation,
legal fees and disbursements, appraisal fees, inspection fees, plan review
fees, travel costs and fees and out-of-pocket costs of independent engineers
and consultants.  NMLP’s obligations to
pay such costs and expenses shall include, without limitation, all attorneys’
fees and other costs and expenses for preparing and conducting litigation or
dispute resolution arising from any breach by NMLP or the NMLP Loan Parties of
any covenant, warranty, representation or agreement under any one or more of
the NMLP Loan Documents.  Unless an Event
of Default has occurred and is then continuing, the Administrative Agent shall
use its best efforts to notify NMLP prior to the incurrence of any such cost or
expense if the aggregate amount of such costs and expenses in any one calendar
year will exceed $25,000.00; provided, however, that the failure shall provide
such notice shall not affect in any manner whatsoever on NMLP’s obligations
hereunder.

 

7.1.20          Appraisals. 

 

(a)                                  Appraisal.
 Administrative Agent shall have the
right at its option, from time to time, to order an appraisal of one or more of
the Individual Properties prepared at Administrative Agent’s direction by an
appraiser selected by Administrative Agent (the “Appraisal”).  An appraiser selected by Administrative Agent
shall be an MAI member with not less than ten (10) years experience
appraising commercial properties in the respective area(s) of the Individual
Properties and otherwise qualified pursuant to provisions of applicable laws
and regulations under and pursuant to which Administrative Agent operates).

 

(b)                                 Costs
of Appraisal.  NMLP shall pay for the
costs of each Appraisal and each updated Appraisal only after the occurrence
and during the continuance of an Event of Default; provided that NMLP shall not
be required to

 

69

 

pay for more than one (1) Appraisal
of each Individual Property in any twelve (12) month period.

 

7.1.21          Indemnification.  NMLP shall at all times, both before and
after repayment of the NMLP Loan, at its sole cost and expense defend,
indemnify, exonerate and save harmless Administrative Agent and each of the
Lenders and all those claiming by, through or under Administrative Agent and
each of the Lenders (“Indemnified Party”) (to the extent not paid by NMLP in
this Section 7.1.21 or under the applicable provisions of this or any
other NMLP Loan Document) against and from all damages, losses, liabilities,
obligations, penalties, claims, litigation, demands, defenses, judgments,
suits, proceedings, costs, disbursements or expenses of any kind whatsoever,
including, without limitation, attorneys’ fees and experts’ fees and
disbursements, which may at any time (including, without limitation, before or
after discharge or foreclosure of the NMLP Security Documents) be imposed upon,
incurred by or asserted or awarded against the Indemnified Party and arising
from or out of:

 

(a)                                  any
liability for damage to person or property arising out of any violation of any
Legal Requirement with respect to NMLP, any NMLP Subsidiary, any NMLP Loan
Party or any Individual Property, or

 

(b)                                 any
and all liabilities, damages, penalties, costs, and expenses, relating in any
manner to any brokerage or finder’s fees in respect of the Loan, or

 

(c)                                  as
a result of litigation that may arise in connection with NMLP’s activities or
payment of any fees to NMLP GP, or

 

(d)                                 any
act, omission, negligence or conduct at any Individual Property, or arising or
claimed to have arisen, out of any act, omission, negligence or conduct of NMLP
or any tenant, occupant or invitee thereof which is in any way related to any
Individual Property.

 

Notwithstanding
the foregoing, an Indemnified Party shall not be entitled to indemnification in
respect of claims arising from acts of its own gross negligence or willful
misconduct to the extent that such gross negligence or willful misconduct is
determined by the final judgment of a court of competent jurisdiction, not
subject to further appeal, in proceedings to which such Indemnified Party is a
proper party.

 

7.1.22          Leasing
Matters.

 

(a)                                  Administrative
Agent’s Approval Required.

 

(i)                                     Except
as provided for herein, the Net Lease Partnerships shall not require the
approval of the Administrative Agent or the Lenders for any proposed Lease of
an Individual Property.

 

(ii)                                  Administrative
Agent’s prior written approval shall be required in each instance as to any
proposed Lease which represents the

 

70

 

conversion of a substantially
single-tenant Individual Property to a substantially multi-tenant Individual
Property.

 

(iii)                               Administrative
Agent’s prior written approval shall be required in each instance as to any
proposed Lease for 25,000 or more rentable square feet, but less than 75,000
rentable square feet, unless NMLP evidences to the Administrative Agent that
(x) the rental rate under the proposed Lease is equal to or greater than the
rental rate for the first renewal term in the Lease in effect for the subject
Individual Property as of the Closing Date and (y) the rating, if any, of the
new tenant is equal to or higher than the rating for the tenant under such
existing Lease.

 

(iv)                              Administrative
Agent’s and Required Lenders prior written approval shall be required in each
instance as to any proposed Lease for 75,000 or more rentable square feet.

 

(v)                                 For
any Lease requiring approval hereunder, the approval shall relate to: (i) the
economic and other terms of the Lease; (ii) each tenant under a proposed
Lease; (iii) each guarantor, if any, of a tenant’s obligations under a
proposed Lease; (iv) any modification or amendment to the Lease, if such
modification or amendment relates to the amount of rent payable thereunder, the
term of the Lease, the Economic Discontinuance Rights provided for therein, or
any other term which may have a material impact on the value of the Individual
Property or the rental payments due under the Lease; and (v) any
termination, cancellation or surrender of the Lease.

 

(b)                                 NMLP’s
Requests.  Any request by NMLP for an
approval from Administrative Agent with respect to leasing matters shall be
sent to the Administrative Agent and shall be accompanied, at a minimum, by the
following: (i) the proposed lease or amendment or modification thereof
complete with all applicable schedules and exhibits; (ii) a complete copy
of any proposed guaranty; (iii) comprehensive financial information with
respect to the proposed tenant and, if applicable, the proposed guarantor (as
to new leases or amendments or modifications to existing leases involving
material economic changes); and (iv) an executive summary of the terms and
conditions of the proposed lease and, if applicable, the proposed guaranty.

 

(c)                                  Response.  The Administrative Agent (and the Required
Lenders, as applicable) shall act on requests from NMLP for any approval
required under Section 7.1.22 in a commercially reasonable manner and
shall use commercially reasonable efforts to respond to any such request within
(a) fifteen (15) Business Days for approvals required under Section 7.1.22(a)(ii) and
(a)(iii) above, and (b) twenty (20) Business Days for approvals
required under Section 7.1.22(a)(iv) above, in each instance
following Administrative Agent’s receipt thereof with all required supporting
information.  Administrative Agent’s
response may consist of an approval or disapproval of the request, or a
conditional approval thereof subject to specified conditions, or a request for
further data or information, or any combination thereof.  If Administrative Agent (and the Required
Lenders, as

 

71

 

applicable) fails to respond to
any such request within such prescribed time period, such request shall be
deemed approved by the Administrative Agent (and the Required Lenders, as applicable).  In order to expedite the processing of
requests for such approvals, NMLP agrees to provide Administrative Agent with
as much advance information as is possible in a commercially reasonable manner
in advance of NMLP’s formal request for an approval.  NMLP has submitted to Administrative Agent
and Administrative Agent has approved a standard lease form annexed hereto as Schedule 7.1.22(c) (“Form Lease”).  Whenever reasonably possible all NMLP’s
requests for lease approvals shall be accompanied by an express description of
any material deviations from the Form Lease, other than those deviations
from the Form Lease which relate to the location or nature of the subject
Individual Property.

 

7.1.23          Future
Collateral Obligations. NMLP acknowledges that the determination by the Administrative
Agent as to the Collateral was based upon an analysis of the assets owned by
NMLP, the NMLP Subsidiaries, the pro-rata portion of the assets owned by the
Other Partnerships and Partially Owned Limited Partnerships, and the assets
owned by Newkirk Group Entities that are parties to the NMLP Security
Documents. NMLP shall (and shall cause any other NMLP Loan Party(except for the
Newkirk Indemnitor or the MLP Holders) or any other NMLP Subsidiary to) agree
to the following undertaking:

 

(a)                                  In
the event that at any time NMLP, any NMLP Loan Party (except any Newkirk
Indemnitor or the MLP Holders), or any NMLP Subsidiary acquires or obtains any
interest in any asset relating to NMLP or the business operations of NMLP and
the NMLP Subsidiaries, including, without limitation, (i) the fee, remainderman
or ground lessor interest in any Individual Property (including any Acquired
Individual Asset), (ii) any interest in the Securitization Documents, (iii) any
limited or general partnership interests in Other Partnerships, Partially Owned
Limited Partnership or Other Partnership, (iv) any new Investment
permitted under Section 8.1.19 below, or (v) any interest in any
Mortgage Debt, NMLP shall notify the Administrative Agent in writing and,
except with respect to any interest in an Individual Property Owned by a GMAC
Borrower or any general partnership interest in a GMAC Borrower, shall execute,
or cause the applicable NMLP Loan Party, or NMLP Subsidiary to execute, such
documents as shall be reasonably requested by the Administrative Agent to
confirm, or establish, that the interest so acquired or obtained is included
within the NMLP Collateral and to effectuate the terms and provisions of this
Agreement with respect thereto.

 

(b)                                 NMLP
agrees that without the prior consent of the Administrative Agent, no other
Newkirk Group Entity or MLP Holder will acquire or obtain any interest in any
asset related to the operation, ownership or management of the Individual
Properties (including any Acquired Individual Asset) or any of the other assets
of NMLP or the NMLP Subsidiaries, with the exception of additional ownership
interests in the REIT or NMLP simultaneous with or after the consummation of
the IPO, unless such Person shall execute such documents as shall be reasonably
requested by the Administrative Agent to confirm, or

 

72

 

establish, that the interest so
acquired or obtained is included within the NMLP Collateral (or if such Person
cannot grant such security interest to the Administrative Agent, that the ownership
interest in the entity holding such asset is included within the NMLP
Collateral) and to effectuate the terms and provisions of this Agreement with
respect thereto; provided, however, that nothing contained herein shall
prohibit any Newkirk Group Entity or MLP Holder from acquiring additional
limited partnership interests in NMLP and any such limited partnership
interests of NMLP so acquired shall not be required to be included within the
NMLP Collateral.

 

(c)                                  In
the event that at any time an Other Partnership is merged into a NMLP
Partnership, NMLP shall notify the Administrative Agent in writing and shall
execute, or cause the applicable NMLP Subsidiary to execute, such documents as
shall be reasonably requested by the Administrative Agent to confirm, or
establish, that the limited partnership interests and, except for a GMAC
Borrower, the general partnership interests in such NMLP Partnership are
included within the NMLP Collateral (subject to any existing Liens associated
with any such asset) and to effectuate the terms and provisions of this
Agreement with respect thereto.

 

(d)                                 In
the event that at any time NMLP shall establish or acquire a Person such that
such Person is a NMLP Subsidiary, NMLP shall notify the Administrative Agent in
writing and shall execute, or cause the applicable NMLP Subsidiary to execute,
such documents as shall be reasonably requested by the Administrative Agent to
confirm, or establish, that the ownership interests in such NMLP Subsidiary and
the assets of such Subsidiary (other than (i) the assets of Net Lease
Partnerships which is subject to any Mortgage Debt and (ii) the assets of
any general partner of a GMAC Borrower) are included within the NMLP Collateral
(subject to any existing Liens associated with any such asset) and to
effectuate the terms and provisions of this Agreement with respect thereto.

 

(e)                                  In
the event that at any time NMLP or any NMLP Subsidiary acquires or obtains any
interest in any asset (other than an Individual Property), NMLP shall notify
the Administrative Agent in writing and, except with respect to any general
partnership interest in a GMAC Borrower, shall execute, or cause the applicable
NMLP Subsidiary to execute, such documents as shall be reasonably requested by
the Administrative Agent to confirm, or establish, that the asset so acquired
or obtained is included within the NMLP Collateral (subject to any existing
Liens associated with any such asset) and to effectuate the terms and
provisions of this Agreement with respect thereto (if the value of the asset
acquired is less than $2,000,000.00, the notification and documentation will be
provided annually).

 

(f)                                    In
the event that at any time due to the rejection of a Rejectable Offer, the
applicable Lease terminates and the applicable Net Lease Partnership is the
owner of an Individual Property without any Mortgage Debt thereon, at the
option of the Administrative Agent, the Net Lease Partnership shall grant to
the Administrative Agent, on behalf of the Lenders, a mortgage or deed of trust
interest in and to said Individual Property; provided, however, in the event of
the

 

73

 

incurrence of Permitted
Additional Debt with respect to such Individual Property, or other refinance
with the written consent of the Administrative Agent, of the Individual
Property, the Administrative Agent shall release the said mortgage or deed of
trust to the refinanced loan subject to the payment of the NMLP Mandatory
Principal Payment relating thereto.

 

(g)                                 In
the event that at any time due to the acceptance of a Rejectable Offer, a so
called “Exchange Property” is conveyed to the applicable Net Lease Partnership
so that it is the owner of the “Exchange Property” without any Mortgage Debt
thereon, at the option of the Administrative Agent, the Net Lease Partnership
shall grant to the Administrative Agent, on behalf of the Lenders, a mortgage
or deed of trust interest in and to said Individual Property; provided,
however, in the event of the incurrence of Permitted Additional Debt with
respect to such Exchange Property, or other refinance with the written consent
of the Administrative Agent, of the “Exchange Property”, the Administrative
Agent shall release the said mortgage or deed of trust to the refinanced loan
subject to the payment of the NMLP Mandatory Principal Prepayment relating
thereto.

 

(h)                                 Upon
the payment in full of the Mortgage Debt on any Individual Property (including
any Acquired Individual Asset) or if at any time any Individual Property (including
any Acquired Individual Asset) is free and clear of all Mortgage Debt, at the
option of the Administrative Agent, the applicable Net Lease Partnership shall
grant to the Administrative Agent, on behalf of the Lenders, a mortgage or deed
of trust interest in and to said Individual Property; provided, however, in the
event the incurrence of Permitted Additional Debt with respect to such
Individual Property, or other refinance with the consent of the Administrative
Agent of the Individual Property, the Administrative Agent shall release the
said mortgage or deed of trust to the refinanced loan subject to the payment of
the NMLP Mandatory Principal Prepayment relating thereto.

 

(i)                                     NMLP
agrees to provide to the Administrative Agent written notice of any of the
events described in this Section 7.1.23 within five (5) Business Days
of Knowledge thereof by NMLP and further agrees to execute and deliver any
documents as reasonably requested by the Administrative Agent to effectuate the
terms and provisions hereof within five (5) Business Days of the Administrative
Agent’s request therefor.

 

(j)                                     In
connection with the acquisition of any Acquired Individual Asset, NMLP will,
and will cause any NMLP Subsidiary, to comply with the following requirements:

 

(i)                                     NMLP
will notify the Administrative Agent in writing and comply with the
requirements of Section 8.1.25 with respect thereto;

 

(ii)                                  NMLP
shall execute, or cause the applicable NMLP Loan Party, or NMLP Subsidiary to
execute, such documents as shall be reasonably requested by the Administrative
Agent to confirm, or establish, that the Individual Acquired Property or the direct
or indirect ownership interests in such NMLP Subsidiary are included within the
NMLP

 

74

 

Collateral and to effectuate
the terms and provisions of this Agreement with respect thereto, including,
without limitation, the execution of a ownership interest pledge agreement, guaranty,
security agreement and deposit account pledge agreement (consistent with the
forms of such agreements required of the other NMLP Subsidiaries under Article 3
above); and

 

(iii)                               If
required by the Administrative Agent, and only in the event Reinvestment
Proceeds are utilized in connection with the acquisition of such Acquired
Individual Asset, a mortgage or deed of trust (in form and substance acceptable
to the Administrative Agent) on any Acquired Individual Asset which is not
subject to any Mortgage Debt; provided, however, in the event of the incurrence
of Permitted Additional Debt with respect to such Acquired Individual Asset, or
other refinance with the written consent of the Administrative Agent, of the
Individual Property, the Administrative Agent shall release the said mortgage
or deed of trust to the refinanced loan subject to the payment of the NMLP
Mandatory Principal Payment relating thereto.

 

7.1.24          Economic
Discontinuance.

 

(a)                                  Within
ten (10) Business Days of receipt thereof, NMLP shall cause the applicable
NMLP Partnership to provide to the Administrative Agent a copy of each
Rejectable Offer received by any NMLP Partnership, and concurrently with the
giving thereof, and within five (5) Business Days of receipt thereof,
copies of any subsequent notices received with respect thereto, whether from
the tenant exercising the Economic Discontinuance Rights, the applicable holder
of the remainderman interest in the subject Individual Property, the applicable
ground lessor, the applicable sublessee, the applicable master lessor, or any
other Person.

 

(b)                                 No
later than forty-five (45) days prior to the last day for the NMLP Partnership
to reject the Rejectable Offer, NMLP shall provide to the Administrative Agent
in writing the determination by NMLP as to whether it requests the approval of
the acceptance or rejection of the Rejectable Offer, which notice shall include
the Officer’s Certificate required in accordance with Section (d) or (e),
below, with supporting detail necessary for the Administrative Agent to verify
the calculations incorporated therein.

 

(c)                                  Except
as otherwise provided for herein, in connection with the exercise by a tenant
of the Economic Discontinuance Rights, NMLP shall not, and shall cause each
NMLP Partnership not to grant, approve, reject or object to any requested
consent or approval, including, without limitation, the acceptance or rejection
of a so called “Exchange Offer”, without the written approval of the Administrative
Agent.

 

(d)                                 Subject
to the compliance with any applicable terms relating to the Mortgage Debt and,
if applicable, the Ownership Interest Agreement, (i) NMLP may accept any
Rejectable Offer if (a) any required NMLP Mandatory Principal

 

75

 

Prepayment relative thereto is
to be paid to the Administrative Agent upon the consummation of the Economic
Discontinuance Sale, (b) no Default or Event of Default is then occurring
or will occur as a result of the consummation of the subject Economic
Discontinuance Sale, (c) NMLP is in compliance with the Financial
Covenants and will not fail to be in compliance therewith as a result of the
consummation of the subject Economic Discontinuance Sale, and (d) NMLP
submits to the Administrative Agent an Officer’s Certificate reflecting a
pro-forma calculation that the Borrower will be in compliance with the Financial
Covenants after the consummation of the subject Economic Discontinuance Sale,
or (ii) NMLP shall accept the Rejectable Offer if approved in writing by
the Administrative Agent.

 

(e)                                  Subject
to the compliance with any applicable terms relating to the Mortgage Debt and,
if applicable, the Ownership Interest Agreement, (i) NMLP may reject any
Rejectable Offer if (a) NMLP is in compliance with the Rejection Test and
will not fail to be in compliance therewith as a result of the consequences of
the rejection of the Rejectable Offer, (b) no Default or Event of Default
is then occurring or will occur as a result of the consequences of the
rejection of the Rejectable Offer, (c) NMLP is in compliance with the Financial
Covenants and will not fail to be in compliance therewith as a result of the
consequences of the rejection of the Rejectable Offer, and (d) NMLP
submits to the Administrative Agent an Officer’s Certificate reflecting a
pro-forma calculation that NMLP will be in compliance with the Financial
Covenants, and the Rejection Test after giving effect to the financial
consequences of the rejection of the Rejectable Offer or (ii) NMLP shall
reject the Rejectable Offer if approved in writing by the Administrative Agent.

 

(f)                                    As
used herein, the “Rejection Test” shall mean that the aggregate outstanding
Mortgage Debt on all ED Properties (assuming for purposes of this calculation,
that the subject Rejectable Offer is rejected and included therein) shall be
less than the ED Cash Flow.  The Term “ED
Cash Flow” shall mean the
projected Free Cash Flow for the succeeding twelve (12) month period, excluding
(a) all cash flow from all ED Properties, and (b) all cash flow from
any Individual Property after the date on which the existing term of the lease
for such Individual Property expires, unless an applicable extension option
shall have been exercised.

 

(g)                                 Notwithstanding
the terms and provisions hereof, the Administrative Agent and NMLP agree and
acknowledge that with respect to any Individual Property which is subject to a
GMAC Mortgage Loan, unless the applicable GMAC Mortgage Loan has been repaid in
full or is repaid in full prior to the rejection of any such Rejectable Offer,
the Borrower must cause each applicable GMAC Borrower to accept any such
Rejectable Offer.

 

7.1.25          Replacement
Documentation.  Upon receipt of an
affidavit of an officer of Administrative Agent as to the loss, theft,
destruction or mutilation of the NMLP Note or any other NMLP Security Document
which is not of public record, and, in the case of any such loss, theft,
destruction or mutilation, upon surrender and cancellation of such NMLP Note or
other NMLP Security

 

76

 

Document, NMLP will issue, in
lieu thereof, a replacement NMLP Note or other security document in the same
principal amount and otherwise of like tenor upon receipt by NMLP of a suitable
indemnity.

 

7.1.26          Other
Covenants. NMLP hereby represents and warrants that no NMLP Collateral is
in the possession of any third party bailee (such as at a warehouse).  In the event that NMLP and/or any of the
other NMLP Loan Parties, after the date hereof, intends to store or otherwise
deliver any NMLP Collateral or other personal property in which the Administrative
Agent has been granted a security interest to such a bailee, then NMLP shall
receive the prior written consent of the Administrative Agent and such bailee
must acknowledge in writing that the bailee is holding such NMLP Collateral or
such other personal property for the benefit of the Administrative Agent and
the Lenders.

 

7.1.27          Related
Documents.

 

(a)                                  NMLP
will, or will cause each NMLP Subsidiary to, comply with the terms and
provisions of all of the Related Documents.

 

(b)                                 Upon
the occurrence of a default under the Integrated Documents, NMLP shall notify
the Administrative Agent of NMLP’s intention to cause each of the NMLP
Partnerships to terminate the Amended and Restated Asset Management Agreement
and, if approved by the Administrative Agent, NMLP shall so cause each of the
NMLP Partnerships to terminate the Amended and Restated Asset Management
Agreement.

 

(c)                                  Upon
the expiration of the Non-Transfer Period as set forth in the Integrated Loan
Documents or upon the ownership of all of the membership interests in Newkirk
Capital LLC by NMLP, a NMLP Subsidiary or any Newkirk Group Entities, NMLP
shall cause Newkirk Capital LLC and Newkirk Asset Management LLC to execute and
deliver to the Administrative Agent, on behalf of the Lenders, the Guaranty,
together with such documents as may be reasonably requested by the Administrative
Agent to grant to the Administrative Agent, on behalf of the Lenders, a
security interest in all of the assets of such NMLP Subsidiaries, including,
without limitation, a pledge of any NMLP Depository Accounts and NMLP Accounts,
a pledge of the ownership interest in Newkirk Asset Management LLC, a pledge of
the Amended and Restated Asset Management Agreement, and a pledge of the
Contract to Provide Asset Management Services.

 

7.1.28          T/I
Fund Account.

 

(a)                                  NMLP
shall create for the benefit of Administrative Agent or the Deposit Account
Co-Agent (in each instance, on behalf of the Lenders) a reserve account (the “T/I
Fund Account”) for the purpose of creating a reserve for projected tenant
improvements, leasing commissions and related costs for Net Lease Partnerships
(the “Permitted Leasing Costs”).

 

77

 

(b)                                 NMLP
shall have on deposit in the T/I Fund Account on the Funding Date an amount no
less than $11,000,000.00.  Thereafter,
NMLP shall deposit with the Administrative Agent in the T/I Fund Account One
Million Two Hundred Fifty Thousand ($1,250,000.00) Dollars quarterly commencing
on September 30, 2005 and continuing on the last day of each Fiscal
Quarter thereafter, until there is on deposit in the T/I Fund Account the
Required T/I Amount.  Once there is on
deposit in the T/I Fund Account an amount equal to or more than the Required
T/I Amount, the only quarterly deposits required to be made by NMLP in the T/I
Fund Account shall be the lesser of (i) One-Million Two Hundred Fifty
Thousand ($1,250,000.00) Dollars or (ii) the amount necessary to increase
the amount on deposit to be equal to the Required T/I Amount.

 

(c)                                  Provided
that (i) no Default or Event of Default exists and is continuing, (ii) the
Borrowers are in compliance with the Financial Covenants, (iii) the full
amount of the Permitted T/I Debt has been incurred by the NMLP Loan Parties, NMLP
may withdraw funds from the T/I Fund Account as follows:

 

(i)                                     Upon
the written request of NMLP, any amount by which the balance in the T/I Fund
Account exceeds the Required T/I Amount; and

 

(ii)                                  As
necessary, NMLP may request disbursements from the T/I Fund Account provided:

 

(1)                                  NMLP
shall have delivered a written request for the disbursement to the Administrative
Agent, which request shall (1) specify the Permitted Leasing Costs for the
period in which the disbursement is requested, (2) set forth the amount of
the requested disbursement, and (3) if the requested disbursement exceeds
Five Thousand Dollars ($5,000), include an invoice or signed contract
specifying that the work has been done or the cost incurred;

 

(2)                                  Such
disbursement is used to pay the actual cost of a Permitted Leasing Cost;

 

(3)                                  The
Permitted Leasing Cost is in compliance with the then current Annual Leasing
Cost Budget; and

 

(4)                                  All
Permitted T/I Debt has been obtained by and fully funded to NMLP to fund
Permitted Leasing Costs previously incurred by NMLP.

 

(d)                                 The
T/I Fund Account shall be an interest bearing account maintained at the Administrative
Agent. The T/I Fund Account shall be subject to the NMLP Depository Account
Pledge and Security Agreement.

 

(e)                                  As
used herein, the “Required T/I Amount” shall be an amount as reasonably
determined from time to time by the Administrative Agent reflecting

 

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the projected Permitted Leasing
Costs for the following forty-eight (48) month period. The Administrative Agent
shall advise NMLP in writing of any change in the Required T/I Amount.  As used herein, the “Annual Leasing Cost
Budget” shall be a budget submitted annually by NMLP to the Administrative
Agent reflecting the projected Permitted Leasing Costs for the next year, with
appropriate itemization on a consolidated (and not Individual Property) basis
as required by the Administrative Agent, which annual budget shall be subject
to the approval of the Administrative Agent, which approval shall not be
unreasonably withheld.

 

(f)                                    Provided
no Event of Default shall have occurred and be continuing, upon the
satisfaction in full of all the NMLP Obligations, Administrative Agent shall
release the sums remaining in the T/I Fund Account, if any, to NMLP.

 

7.1.29          Single-Purpose
Entity.

 

(a)                                  NMLP
shall cause each NMLP Subsidiary to be a Single-Purpose Entity and to comply
with the terms and provisions hereof with respect thereto.

 

(b)                                 Prior
to the consummation of the IPO, NMLP shall cause Newkirk MLP Corp., the sole
manager of the NMLP GP, to maintain at least one director which is an
Independent Person.  The unanimous
consent of the directors of Newkirk MLP Corp. (including the vote of said
Independent Person) shall be required in order to file, or consent to the
filing of, a bankruptcy or insolvency petition or otherwise institute
insolvency proceedings for NMLP GP, NMLP, or any NMLP Subsidiary.

 

7.1.30          Ratings.  NMLP will obtain updated annual Ratings from
Moody’s Investors Services, Inc. And Standard and Poor’s Rating Group (or
such other rating agency as may be reasonably acceptable to the Administrative
Agent) at no cost or expense to the Administrative Agent or any Lender.

 

7.1.31          IPO.  NMLP has informed the Administrative Agent
that members of the Newkirk Group and other limited partners of NMLP intend to
transfer various percentages of their ownership interests in NMLP (including
the general partner interest) to Newkirk Realty Trust, Inc., a Maryland
corporation which intends to qualify as a real estate investment trust under
the Internal Revenue Code (the “REIT”), with the REIT thereafter consummating
an initial public offering of its shares (the “IPO”).  The proposed terms and conditions of the IPO
are more fully described in the draft registration statement annexed hereto as Exhibit Q.  The Administrative Agent and the Lenders
hereby consent to the completion of all activities in connection with the IPO,
provided (a) NMLP makes the IPO Payment in connection therewith, and (b) the
Administrative Agent approves, in its reasonable discretion, the final legal
and economic structure and consequences of the IPO, if same materially differs
from that contemplated in Exhibit Q.  Upon the consummation of the IPO, the
Administrative Agent hereby agrees that it will release the Guaranties executed

 

79

 

by each of NMLP GP and Vornado
MLP GP L.L.C. (and any collateral granted to secure such Guaranties), provided
no Default is then in existence.

 

7.1.32          T-Two
Acquisition.  If the IPO is
completed, NMLP has informed the Administrative Agent that it may exercise its
rights under the Call Option Agreement to either (a) acquire the Grantor
Trust T-1 Certificate and Grantor Trust T-2 Certificate, or (b) acquire
T-Two (the “T-Two Acquisition”).  In the
event NMLP so acquires T-Two or the Grantor Trust T-1 Certificate and Grantor
Trust T-2 Certificate, provided no Default is then in existence, the
Administrative Agent agrees that it will release the Guaranties executed by
each of NK-CR Holdings LLC, Holding Subsidiary LLC, NK-CR Corp., Newkirk Stock LLC,
VNK L.L.C., and Newkirk NL Holdings LLC (and any collateral granted to secure
such Guaranties) upon receipt by the Administrative Agent of the cash
consideration paid, if any, by NMLP to effect such acquisition.  In the event NMLP acquires the Grantor Trust
T-1 Certificate and Grantor Trust T-2 Certificate, NMLP shall, at the request
of the Administrative Agent, assume the T-Two Loan, and NMLP shall, and shall
cause each Loan Party to, execute all documents and take all such action as may
be required by the Administrative Agent to effect the assumption by NMLP of the
T-Two Loan.

 

7.1.33          Office
of Foreign Assets Control.  No NMLP
Loan Party is a person (i) whose property or interest in property is
blocked or subject to blocking pursuant to Section 1 of Executive Order
13224 of September 23, 2001 Blocking Property and Prohibiting Transactions
With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg.
49079 (2001)), (ii) who engages in any dealings or transactions prohibited
by Section 2 of such executive order, or to the best of Borrowers’
knowledge, is otherwise associated with any such person in any manner violative
of Section 2, or (iii) on the current list of Specially Designated
Nationals and Blocked Persons or subject to the limitations or prohibitions
under any other U.S. Department of Treasury’s Office of Foreign Assets Control
regulation or executive order.

 

7.1.34          Patriot
Act.  To the extent required, each
NMLP Loan Party is in compliance, in all material respects, with the (i) the
Trading with the Enemy Act, as amended, and each of the foreign assets control
regulations of the United States Treasury Department (31 CFR, Subtitle B,
Chapter V, as amended) and any other applicable enabling legislation or
executive order relating thereto, and (ii) the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism (USA Patriot Act of 2001).  To
the best of each NMLP Loan Party’s Knowledge, no part of the proceeds of the
NMLP Loan will be used, directly or indirectly, for any payments to any
governmental official or employee, political party, official of a political
party, candidate for political office, or anyone else acting in an official
capacity, in order to obtain, retain or direct business or obtain any improper
advantage, in violation of the United States Foreign Corrupt Practices Act of
1977, as amended.

 

7.1.35          Mortgage
Debt Repayment.  In connection with
the Mortgage Debt repayment to be effected at closing, NMLP will cause the holders
of each

 

80

 

Mortgage Debt to deliver to the
Administrative Agent discharges and such other documents as the Administrative
Agent may reasonably require (the “Discharge Documents”) including, without limitation,
a release of any existing rental payment direction letter and an agreement to
deliver immediately to the Administrative Agent in kind, any funds received
after payment in full of the applicable Mortgage Debt related to the subject
Individual Property.

 

7.2                                 T-Two.  As long as T-Two is the holder the
Certificates, T-Two covenants and agrees that from the date hereof and so long
as any indebtedness is outstanding hereunder, or any of the T-Two Loan or other
T-Two Obligations remains outstanding, as follows:

 

7.2.1                Notices.
 T-Two shall, with reasonable promptness,
but in all events within five (5) days after it has actual Knowledge
thereof, notify Administrative Agent and each of the Lenders in writing of the
occurrence of any act, event or condition which constitutes a Default or Event
of Default under any of the T-Two Loan Documents.  Such notification shall include a written
statement of any remedial or curative actions which T-Two proposes to undertake
and/or to cause any of the other T-Two Loan Parties to undertake to cure or
remedy such Default or Event of Default.

 

7.2.2                Financial
Statements; Reports; Officer’s Certificates.  T-Two shall furnish or cause to be furnished
to Administrative Agent as set forth herein from time to time, the following financial
statements, reports, certificates, and other information, all in form, manner
of presentation and substance acceptable to Administrative Agent and each of
the Lenders:

 

(a)                                  Annual
Statements.

 

(i)                                     Until
consummation of the IPO, and thereafter only to the extent the financial
statements of T-Two are not consolidated with those of NMLP, within ninety (90)
days after the close of each fiscal year of T-Two, the consolidated statements
of financial condition of T-Two as at the end of such fiscal year and the
related consolidated statements of income and retained earnings and statements
of changes in financial position for such fiscal year, in each case, commencing
with the Fiscal Year ending December 31, 2005, setting forth comparative
for the preceding fiscal year and certified by Imowitz, Koenig & Co.
LLP, Deloitte Touche, LLP or such other independent certified public
accountants of recognized national standing reasonably acceptable to the Administrative
Agent, in each case together with a report of such accounting firm stating that
in the course of its regular audit of the financial statements of such Party,
which audit was conducted in accordance with GAAP, consistently applied, such
accounting firm obtained no knowledge of any Default or Event of Default which
has occurred and is continuing or, if in the opinion of such accounting firm
such a Default or Event of Default has occurred and is continuing, a statement
as to the nature thereof; such financial statements to include and to be
supplemented by such detail and supporting data and schedules as Administrative
Agent may from time to time reasonably determine;

 

81

 

(ii)                                  Periodic
Statements  Until consummation of the
IPO, and thereafter only to the extent the financial statements of T-Two are
not consolidated with those of NMLP, within sixty (60) days after the close of
each Fiscal Quarter (except for the quarter ending on December 31), the
following: (i) the consolidated statements of financial condition of
T-Two, internally prepared in accordance with GAAP, consistently applied, as at
the end of such quarterly period and the related consolidated statements of
income and retained earnings and statements of changes in financial position
for such quarterly period and for the elapsed portion of the Fiscal Year ended
with the last day of such quarterly period, in each case commencing with the
Fiscal Year ending December 31, 2005, setting forth comparative figures
for the related periods in the prior fiscal year, subject to normal year-end
audit adjustments, all in form and manner of presentation acceptable to Administrative
Agent, such financial statements to include and to be supplemented by such
detail and supporting data and schedules as Administrative Agent may from time
to time reasonably determine, including, without limitation, a certification as
to the Aggregate DPO as of such quarter end, (ii) an Officer’s Certificate
from T-Two certifying that such financial statements are true, accurate, and
complete in all material respects and that no Default or Event of Default has
occurred and is continuing.

 

(iii)                               Compliance
Certificates.  Until consummation of
the IPO, and thereafter only to the extent the financial statements of T-Two
are not consolidated with those of NMLP, within sixty (60) days (or ninety (90)
days in the case of the fourth fiscal quarter) after the close of each
quarterly accounting period in each Fiscal Year of T-Two, Compliance
Certificates in form of Exhibit G-2 and Exhibit G-3,
annexed hereto, together with an Officer’s Certificate from NMLP providing and
otherwise certifying with respect to the following:

 

(1)                                  the
compliance with the Financial Covenants, with such supporting detail as is
deemed necessary by the Administrative Agent to verify the calculations
incorporated therein; and

 

(2)                                  any
changes to the Securitized Note Schedule.

 

(iv)                              Data
Requested.  Within a reasonable
period of time and from time to time such other financial data or information
as Administrative Agent may reasonably request with respect to the
Securitization Documents, T-Two, and/or the other T-Two Loan Parties.

 

(v)                                 Tax
Returns.  Upon Administrative Agent’s
request, copies of all federal and state tax returns of T-Two.

 

(vi)                              Mortgage
Notices.  Concurrently with the
giving thereof, and within ten (10) Business Days of receipt thereof,
copies of all notices,

 

82

 

other than routine
correspondence, given or received by T-Two with respect to any Securitized Note
or Securitized Mortgage.

 

(vii)                           Entity
Notices. Concurrently with the issuance thereof, copies of all written
notices (excluding routine correspondence) given to the partners of T-Two.

 

(viii)                        Notices
Regarding T-Two Payment Direction Letters. 
Within ten (10) Business Days of receipt thereof, copies of all
notices (excluding routine correspondence) received by T-Two from any Person
who has agreed to the direction of the payment of funds as provided for in a
Payment Direction Letter.

 

(ix)                                Notice
of Termination of T-Two Payment Direction Letter. Promptly, and in any
event within ten (10) Business Days after an officer of T-Two obtains
Knowledge thereof, written notice of the termination of any Payment Direction
Letter, together with evidence of the satisfactory reinstatement or replacement
thereof in accordance with the terms and conditions hereof.

 

(x)                                   Notices
under Securitization Documents.  
Within ten (10) Business Days of receipt thereof, copies of all
notices, reports and other information received by T-Two from any agent,
trustee or servicer or any other party under or pursuant to the Securitization
Documents.

 

(xi)                                Third
Party Default Notices.  Immediately
upon notice or receipt thereof by T-Two, copies of all notices of default,
other non-performance, and/or exercise (or intended exercise) relating in any
way to any one or more of the Related Documents.

 

(xii)                             Notice
of Litigation. Promptly, and in any event within ten (10) Business
Days after T-Two obtains Knowledge thereof, written notice of any pending or, to
the best of T-Two’s Knowledge, threatened action, suit or proceeding at law or
in equity or by or before any governmental instrumentality or other agency or
regulatory authority by any entity (private or governmental) relating in any
way to the Loan, the transactions contemplated in the Documents, the Related
Documents, or relating to T-Two, which could reasonably be expected to have a
Material Adverse Effect.

 

7.2.3                Existence.  Until the T-Two Acquisition shall be
completed, T-Two shall do or cause to be done all things necessary to (i) preserve,
renew and keep in full force and effect (x) the partnership, company or
corporate existence, as applicable, of each T-Two Loan Party and (y) the
material rights, licenses, permits and franchises of each T-Two Loan Party, (ii) comply
with all laws and other Legal Requirements applicable to it and its assets,
business and operations, and (iii) to the extent applicable, at all times
maintain, preserve and protect all material franchises and trade names and all
the remainder of its property used or useful in the conduct of its business,
and keep its assets in good working order

 

83

 

and repair, ordinary wear and
tear excepted, and from time to time make, or cause to be made, all reasonably
necessary repairs, renewals, replacements, betterments and improvements
thereto.

 

7.2.4                Payment
of Taxes.  T-Two shall duly pay and
discharge, before the same shall become overdue, all taxes, assessments,
impositions, and other governmental charges payable by it, except if contested
in accordance with Section 9.1.

 

7.2.5                Insurance;
Casualty, Taking.

 

(a)                                  T-Two
shall at all times maintain or cause the appropriate Person to maintain in full
force and effect the following insurance: (i) to the best of T-Two’s
Knowledge, the Securitized Properties shall be insured by insurers of
recognized financial responsibility against such losses and risks in compliance
with the Leases and the requirements set forth in Exhibit E hereto,
with such insurance being maintained by the tenants under the Leases; and (ii) T-Two
shall have a monitoring system in place to periodically verify whether the
tenants under the Leases have in place insurance as required by the applicable
Lease.

 

(b)                                 In
the event of any damage or destruction to any Securitized Property (or to the
extent now or hereafter applicable, any T-Two Collateral) by reason of fire or
other hazard or casualty, T-Two shall give immediate written notice thereof to the
Administrative Agent. If there is any condemnation for public use of any
Securitized Property (or to the extent now or hereafter applicable, any T-Two
Collateral), T-Two shall give immediate written notice thereof to the Administrative
Agent. Further, T-Two shall upon the request of the Administrative Agent
provide to the Administrative Agent with a report as to the status of any
insurance adjustment, condemnation claim, or restoration resulting from any
casualty or taking.

 

7.2.6                Inspection.
 T-Two shall permit the Administrative
Agent and the Lenders and its/their agents, representatives and employees to
inspect the T-Two Collateral at reasonable hours upon reasonable notice, except
to the extent prohibited or otherwise limited in the subject Leases.

 

7.2.7                T-Two
Loan Documents.  T-Two shall observe,
perform and satisfy all the terms, provisions, covenants and conditions to be
performed by it under, and to pay when due all costs, fees and expenses, and
other T-Two Obligations of T-Two to the extent required under, the T-Two Loan
Documents.

 

7.2.8                Further
Assurances.  T-Two shall and shall
cause the T-Two Loan Parties to execute and deliver to the Administrative Agent
and the other Lenders such documents, instruments, certificates, assignments
and other writings, and do such other acts, necessary or desirable in the
reasonable judgment of the Administrative Agent, to evidence, preserve and/or
protect the T-Two Collateral at any time securing or intended to secure the
T-Two Obligations and do and execute all and such further lawful acts,
conveyances and assurances as the Administrative Agent may reasonably require
for the

 

84

 

better and more effective
carrying out of the intents and purposes of this Agreement and the other T-Two
Loan Documents.

 

7.2.9                Books
and Records.  Until consummation of
the IPO, and thereafter only to the extent the financial statements of T-Two
are not consolidated with those of NMLP, T-Two shall keep and maintain in
accordance with GAAP (or such other accounting basis reasonably acceptable to
the Administrative Agent), proper and accurate books, records and accounts
reflecting all of the financial affairs of T-Two and such other Persons and all
items of income and expense in connection with their respective business and
operations and in connection with any services, equipment or furnishings
provided in connection with the operation of the business of T-Two and such
Persons, whether such income or expense is realized thereby or by any other
Person.  The Administrative Agent shall
have the right, not more than once each quarter (unless an Event of Default
shall have occurred and be continuing in which case as often as the Administrative
Agent shall determine), during normal business hours and upon reasonable
notice, to examine such books, records and accounts of T-Two at the office of
the Person maintaining such books, records, and accounts and to make such
copies or extracts thereof as the Administrative Agent shall desire. T-Two
shall maintain all of its business records at the address specified at the
beginning of this Agreement, subject to change upon advance written
notification to the Administrative Agent. 
The Administrative Agent may discuss the financial and other affairs of
T-Two with any of its respective owners, and any accountants (as to
accountants, prior to the occurrence of an Event of Default and following the
cure of any Event of Default, upon prior approval of T-Two, not to be
unreasonably withheld, and at the cost and expense of the Administrative Agent
and the Lenders) hired by T-Two, it being agreed that Administrative Agent and
each of the Lenders shall use best efforts to not divulge information obtained
from such examination to others except in connection with Legal Requirements
and in connection with administering the T-Two Loan, enforcing its rights and
remedies under the T-Two Loan Documents and in the conduct, operation and
regulation of its banking and lending business (which may include, without
limitation, the transfer of the Loan or of participation interests
therein).  Any assignee or transferee of
the T-Two Loan, co-lender, or any holder of a participation interest in the
T-Two Loan shall be entitled to deal with such information in the same manner
and in connection with any subsequent transfer of its interest in the T-Two
Loan or of further participation interests therein.

 

7.2.10          Business
and Operations.  Until consummation
of the T-Two Acquisition, T-Two shall (i) continue to engage in the type
of businesses presently conducted by it as of the Closing Date, as and to the
extent the same are necessary for the ownership of, and preservation of the
value and utility of, the T-Two Collateral, and (ii) be qualified to do
business and in good standing under the laws of each jurisdiction, and
otherwise to comply with all Legal Requirements, as and to the extent the same
are required for the ownership, maintenance, management and operation of the
assets of such Person except

 

85

 

where the failure to be so
qualified could not reasonably be expected to have a Material Adverse Effect.

 

7.2.11          Title.  T-Two shall warrant and defend (x) the title
to each item of T-Two Collateral owned by such Person and every part thereof,
subject only to the Liens (if any) permitted hereunder, the validity and
priority of the Liens and security interests held by the Administrative Agent
pursuant to the T-Two Loan Documents, in each case against the claims of all
Persons whomsoever. T-Two shall be responsible to reimburse Administrative
Agent and the Lenders for any losses, costs, damages or expenses (including
reasonable attorneys’ fees and court costs) incurred by the Administrative
Agent and/or any of the Lenders if an interest in any item of T-Two Collateral,
other than as permitted hereunder, is claimed by another Person.

 

7.2.12          Estoppel.  T-Two shall, within ten (10) days after
a request therefor from the Administrative Agent, which request shall not be
made by Administrative Agent more than once each quarter during each Fiscal Year,
furnish to the Administrative Agent a statement, duly acknowledged and
certified, setting forth (i) the amount then owing by T-Two in respect of
the T-Two Obligations, (ii) the date through which interest on the T-Two
Loan has been paid, (iii) any offsets, counterclaims, credits or defenses
to the payment by T-Two to the T-Two Obligations and (iv) whether any
written notice of Default from the Administrative Agent to T-Two is then
outstanding and acknowledging that this Agreement and the other T-Two Loan
Documents are in full force and effect and unmodified, or if modified, giving
the particulars of such modification.

 

7.2.13          ERISA.  T-Two shall as soon as possible and, in any
event, within ten (10) days after T-Two, or any ERISA Affiliate knows or
has reason to know of the occurrence of any of the following which could have
or reasonably be expected to have a Material Adverse Effect, deliver to Administrative
Agent a certificate of the an executive officer of T-Two setting forth details
as to such occurrence and the action, if any, that the T-Two or such ERISA
Affiliate is required or proposes to take, together with any notices required
or proposed to be given to or filed with or by such T-Two, the ERISA Affiliate,
the PBGC, a Plan participant or the Plan administrator with respect
thereto:  (i) that a Reportable
Event has occurred; (ii) that an accumulated funding deficiency has been
incurred or an application may be or has been made to the Secretary of the
Treasury for a waiver or modification of the minimum funding standard
(including any required installment payments) or an extension of any
amortization period under Section 412 of the Code with respect to a Plan; (iii) that
a contribution required to be made to a Plan has not been timely made; (iv) that
a Plan has been or may be terminated, reorganized, partitioned or declared
insolvent under Title IV of ERISA; (v) that a Plan has an Unfunded Current
Liability giving rise to a lien under ERISA or the Code; (vi) that
proceedings may be or have been instituted to terminate or appoint a trustee to
administer a Plan; (vii) that a proceeding has been instituted pursuant to
Section 515 of ERISA to collect a delinquent contribution to a Plan; (viii) that
T-Two, or such

 

86

 

ERISA Affiliate will or may
incur any liability (including any indirect, contingent, or secondary
liability) to or on account of the termination of or withdrawal from a Plan
under Sections 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or with
respect to a Plan under Sections 401(a)(29), 4971, 4975 or 4980 of the Code or
Sections 409 or 502(i) or 502(l) of ERISA; (ix) or that T-Two or any
ERISA Affiliate may incur any material liability pursuant to any employee
welfare benefit plan (as defined in Section 3(l) of ERISA) that provides
benefits to retired employees or other former employees (other than as required
by Section 601 of ERISA) or any employee pension benefit plan (as defined
in Section 3(2) of ERISA). 
T-Two shall deliver to the Administrative Agent a complete copy of the
annual report (Form 5500) of each Plan required to be filed with the
Internal Revenue Service.  In addition to
any certificates or notices delivered to the Administrative Agent pursuant to
the first sentence hereof, copies of any material notice received by T-Two or
any ERISA Affiliate with respect to any Plan shall be delivered to Administrative
Agent no later than ten (10) days after the date such report notice has
been received by T-Two or such ERISA Affiliate, as applicable.

 

7.2.14          Depository
Accounts. T-Two shall (i) maintain all operating and other depository
accounts, if any, with the Administrative Agent or the Deposit Account Co-Agent
(or any successor thereto) (singly and collectively, including the T-Two Depository
Accounts, the “T-Two Accounts”), such T-Two Accounts as of the date hereof
listed on Exhibit R, annexed hereto, unless otherwise agreed by Administrative
Agent in writing, (ii) maintain a minimum of one depository account for
each such Person with the Administrative Agent or the Deposit Account Co-Agent (or
any successor thereto) (singly and collectively, the “T-Two Depository Accounts”),
unless otherwise agreed by Administrative Agent in writing, (iii) execute
and deliver the Cash Management Agreement to provide for terms and conditions
satisfactory to the Administrative Agent with respect to the use and
disbursement of funds in any T-Two Account. Each of the T-Two Accounts shall be
subject to the T-Two Depository Account Pledge and Security Agreement.

 

7.2.15          Cash
Flow; T-Two Payment Direction Letters.

 

(a)                                  T-Two
agrees that appropriate procedures satisfactory to the Administrative Agent
will be put in place such that (a) any payments received by the Grantor
Trust, directly by T-Two or by any other Person on account of the Securitized
Notes shall be directly deposited in the designated T-Two Depository Account in
the name of T-Two, and (b) any other receipts or other revenues or
payments received by T-Two shall be directly deposited in a designated T-Two
Depository Account in the name of T-Two. 
Further, after the occurrence and during the continuance of an Event of
Default, Administrative Agent shall have the right to receive any and all such
payments or other revenues and make application thereof to the Obligations.

 

(b)                                 The
use and disbursement of all funds in the T-Two Depository Accounts and the
T-Two Accounts shall be subject to the terms and provisions hereof and the Cash
Management Agreement.

 

87

 

(c)                                  T-Two
agrees that to the extent that T-Two or any T-Two Loan Party receives directly
any payments, revenues or other payments which are required to be deposited as
provided for herein, T-Two shall, and shall cause any other T-Two Loan Party
to, deposit such funds in the applicable designated T-Two Depository Account.

 

(d)                                 T-Two
shall (and shall cause the other T-Two Loan Parties to) maintain in place
during the term of the Loan such direction letters and agreements as the Administrative
Agent may from time to time require in order to effectuate the terms and
provisions hereof relating to the management of the cash flow of T-Two (the “T-Two
Payment Direction Letters”), including, without limitation, the payment of all
amounts due under any Securitized Note or Securitized Mortgage to the Grantor
Trust Trustee.

 

7.2.16          Costs
and Expenses.  T-Two shall pay all
costs and expenses (excluding salaries or wages of employees of Administrative
Agent) reasonably incurred by Administrative Agent in connection with the
implementation and syndication of the T-Two Loan and the administration of the
T-Two Loan, and reasonably incurred by the Administrative Agent or any of the
Lenders in connection with the enforcement of the Administrative Agent’s and
Lenders’ rights under the T-Two Loan Documents, including, without limitation,
legal fees and disbursements, appraisal fees, inspection fees, plan review
fees, travel costs and fees and out-of-pocket costs of independent engineers
and consultants.  T-Two’s obligations to
pay such costs and expenses shall include, without limitation, all attorneys’
fees and other costs and expenses for preparing and conducting litigation or
dispute resolution arising from any breach by T-Two or the T-Two Loan Parties
of any covenant, warranty, representation or agreement under any one or more of
the T-Two Loan Documents.  Unless an
Event of Default has occurred and is then continuing, the Administrative Agent
shall use its best efforts to notify T-Two prior to the incurrence of any such
cost or expense if the aggregate amount of such costs and expenses in any one
calendar year will exceed $25,000.00; provided, however, that the failure shall
provide such notice shall not affect in any manner whatsoever on T-Two’s
obligations hereunder.

 

7.2.17          Indemnification.  T-Two shall at all times, both before and
after repayment of the T-Two Loan, at its sole cost and expense defend,
indemnify, exonerate and save harmless Administrative Agent and each of the
Lenders and all those claiming by, through or under Administrative Agent and
each of the Lenders (“Indemnified Party”) (to the extent not paid by T-Two in
this Section 7.2.17 or under the applicable provisions of this or any
other T-Two Loan Document) against and from all damages, losses, liabilities,
obligations, penalties, claims, litigation, demands, defenses, judgments,
suits, proceedings, costs, disbursements or expenses of any kind whatsoever,
including, without limitation, attorneys’ fees and experts’ fees and
disbursements, which may at any time (including, without limitation, before or
after discharge or foreclosure of the T-Two Security Documents) be imposed
upon, incurred by or asserted or awarded against the Indemnified Party and
arising from or out of:

 

88

 

(a)                                  any
liability for damage to person or property arising out of any violation of any
Legal Requirement with respect to T-Two, any T-Two Loan Party or any
Securitized Property, or

 

(b)                                 any
and all liabilities, damages, penalties, costs, and expenses, relating in any
manner to any brokerage or finder’s fees in respect of the Loan, or

 

(c)                                  as
a result of litigation that may arise in connection with T-Two’s activities, or

 

(d)                                 any
act, omission, negligence or conduct at any Individual Property, or arising or
claimed to have arisen, out of any act, omission, negligence or conduct of
T-Two or any tenant, occupant or invitee thereof which is in any way related to
any Individual Property.

 

Notwithstanding
the foregoing, an Indemnified Party shall not be entitled to indemnification in
respect of claims arising from acts of its own gross negligence or willful
misconduct to the extent that such gross negligence or willful misconduct is
determined by the final judgment of a court of competent jurisdiction, not
subject to further appeal, in proceedings to which such Indemnified Party is a
proper party.

 

7.2.18          Replacement
Documentation.  Upon receipt
of an affidavit of an officer of Administrative Agent as to the loss, theft,
destruction or mutilation of the T-Two Note or any other T-Two Security
Document which is not of public record, and, in the case of any such loss,
theft, destruction or mutilation, upon surrender and cancellation of such T-Two
Note or other T-Two Security Document, T-Two will issue, in lieu thereof, a
replacement T-Two Note or other security document in the same principal amount
and otherwise of like tenor upon receipt by T-Two of a suitable indemnity.

 

7.2.19          Other
Covenants.  With the exception
of the T-Two Collateral held by the Grantor Trustee pursuant to the terms of
the Securitization Documents, T-Two hereby represents and warrants that no
T-Two Collateral is in the possession of any third party bailee (such as at a
warehouse).  In the event that T-Two and/or
any of the other T-Two Loan Parties, after the date hereof, intends to store or
otherwise deliver any T-Two Collateral or other personal property in which the Administrative
Agent has been granted a security interest to such a bailee, then T-Two shall
receive the prior written consent of the Administrative Agent and such bailee
must acknowledge in writing that the bailee is holding such T-Two Collateral or
such other personal property for the benefit of the Administrative Agent and
the Lenders.

 

7.2.20          Single-Purpose
Entity.  Until such time as
the T-Two Acquisition may be consummated, T-Two shall continue to be a
Single-Purpose Entity and shall comply with the terms and provisions hereof
with respect thereto.

 

7.2.21          Intercompany
Loan.  Upon request of the
NMLP, T-Two shall make advances to NMLP (the “Intercompany Loan”), which
advances shall be evidenced and governed by the Intercompany Loan Documents.
The proceeds of 

 

89

 

the
Intercompany Loan shall be utilized by NMLP for general working capital
purposes. The Intercompany Loan shall bear interest and shall be repaid in
accordance with the terms of the Intercompany Loan Documents.

 

7.2.22          Office of Foreign
Assets Control.  No T-Two Loan Party
is a person (i) whose property or interest in property is blocked or
subject to blocking pursuant to Section 1 of Executive Order 13224 of September 23,
2001 Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) who
engages in any dealings or transactions prohibited by Section 2 of such
executive order, or to the best of Borrowers’ knowledge, is otherwise
associated with any such person in any manner violative of Section 2, or (iii) on
the current list of Specially Designated Nationals and Blocked Persons or
subject to the limitations or prohibitions under any other U.S. Department of
Treasury’s Office of Foreign Assets Control regulation or executive order.

 

7.2.23          Patriot Act.  Each T-Two Loan Party is in compliance, in
all material respects, with the (i) the Trading with the Enemy Act, as
amended, and each of the foreign assets control regulations of the United
States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any
other applicable enabling legislation or executive order relating thereto, and (ii) the
Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism (USA Patriot Act of 2001).  To the best of each T-Two Loan Party’s
knowledge, no part of the proceeds of the T-Two Loan will be used, directly or
indirectly, for any payments to any governmental official or employee,
political party, official of a political party, candidate for political office,
or anyone else acting in an official capacity, in order to obtain, retain or
direct business or obtain any improper advantage, in violation of the United
States Foreign Corrupt Practices Act of 1977, as amended.

 

7.2.24          Waiver.  T-Two hereby waives, and shall instruct the Servicer
to waive, any term or condition of the Securitization Documents which would
prevent or prohibit the Guaranty Partnerships from executing the NMLP Guaranty and
the other NMLP Security Documents required hereunder.

 

7.3                                 Financial
Covenants.  The Borrower shall comply
with the following financial covenants;

 

7.3.1                Debt Service
Coverage Ratios.

 

(a)                                  Certain
Definitions.

 

(i)                                     “Calculation
Date” shall mean the last day of each Fiscal Quarter commencing with September 30,
2005.

 

(ii)                                  “Calculation
Period” shall mean each successive twelve (12) month period ending on a
Calculation Date.

 

90

 

(iii)                               “Consolidated
Debt Service Coverage” shall mean the ratio for the Calculation Period of:  (A) Consolidated Net Cash Flow to (B) Consolidated
Debt Service.

 

(iv)                              “Consolidated
Net Cash Flow” shall mean the  sum of (i) (a) the
aggregate of all cash revenues of all of NMLP’s Subsidiaries and regularly
scheduled principal and interest from the Newkirk Loans, including, without
limitation, all rents, management fees, ground rent, common area maintenance
charges, insurance premium and tax reimbursements and proceeds from rental
interruption insurance, plus (b) all regularly scheduled payments of
principal and interest received by T-Two on account of any Non-Wholly Owned
Securitized Note,  less the
aggregate of (ii) all operating costs and expenses (excluding Consolidated
Debt Service) of NMLP, T-Two, and the NMLP’s Subsidiaries related to such
investments, amounts reserved for taxes and insurance, replacement reserves,
and capital expenditures, all of the foregoing as reasonably determined by the Administrative
Agent in a manner consistent with the procedures and methods utilized by the Administrative
Agent in analyzing the financial information provided by NMLP and T-Two prior
to closing.

 

(v)                                 “Consolidated
Debt Service” shall mean (A) the sum of the aggregate actual principal and
interest paid or payable respecting all Debt of NMLP, T-Two and the NMLP’s
Subsidiaries (but excluding, for the purposes of this definition, (i) debt
service with respect to the Securitized Notes, (ii) any payments due under
the Intercompany Loan (iii) any required principal payments under Section 2.3.8(a) hereof,
(iv) any Mandatory Principal Prepayments, and (v) any voluntary
principal prepayments under the Loan), on a consolidated basis, during the
Calculation Period less (B) with respect to interest payments required
with respect to the NMLP Loan and the T-Two Loan, the amount paid to NMLP or
T-Two or the Administrative Agent pursuant to any Interest Rate  Agreement relating to interest due during the
subject Calculation Period.

 

(b)                                 Minimum
Consolidated Debt Service Coverage. 
During the Initial Term, the Consolidated Debt Service Coverage for each
Calculation Period determined on each Calculation Date shall be not less than
1.70:1. During any Extended Term, the Consolidated Debt Service Coverage for
each Calculation Period determined on each Calculation Date shall be not less
than 2:1.  The compliance with the
Consolidated Debt Service Coverage covenant shall be tested by the Administrative
Agent on the Calculation Date with results based upon the most recent
Calculation Period results, as reasonably determined by the Administrative
Agent in a manner consistent with the procedures and methods utilized by the Administrative
Agent in analyzing the financial information provided by NMLP and T-Two prior
to Closing. If such Consolidated Debt Service Coverage covenant shall not be
satisfied on any Calculation Date, the Borrower shall prepay a sufficient
amount of principal outstanding on the Loan such that if such principal
reduction had been made on the first day of the 

 

91

 

Calculation Period, the
Consolidated Debt Service Coverage covenant would have been satisfied. It shall
be an Event of Default if the Borrower fails to make such a prepayment not
later than the first to occur of: (i) ten (10) Business Days after
notice from Administrative Agent to the Borrower properly requesting the
payment, or (ii) if the Borrower has failed to give Administrative Agent
sufficient reports to enable the Administrative Agent to make the necessary
calculations, forty-five (45) days following the applicable Calculation Date;
provided the Borrower shall have an additional five (5) days to supply
additional information to the Administrative Agent from the date the Administrative
Agent notifies the Borrower that the initial reports have been deemed
insufficient by the Administrative Agent.

 

7.3.2                Consolidated
Leverage Ratio.  The quotient
resulting from  dividing (i) the sum
of (1) NMLP’s allocable share of the aggregate amount of all Debt
respecting the NMLP’s Investments and (2) the aggregate amount of T-Two’s
Debt (including, without limitation, the outstanding balance of the Loan and
the T-Two Loan, but excluding the outstanding balance of the Securitized Notes
and the Intercompany Loan) by (ii) the aggregate of (1) Aggregate
Investment Capitalization of NMLP’s 
allocable share of all the NMLP’s Investments, plus (2) plus all
cash and cash equivalents (excluding (A) any amounts contained in the
Reinvestment Account but including (B) any amounts in excess of the
Required T/I Amount (calculated for this purpose only based upon the projected
leasing costs (as determined by the Administrative Agent) for the following
twelve month period only) contained in the T/I Fund Account) of NMLP and the
NMLP Subsidiaries (the “Consolidated Leverage Ratio”), all as reasonably
determined by the Administrative Agent in a manner consistent with the
procedures and methods utilized by the Administrative Agent in analyzing the
financial information provided by NMLP prior to closing, shall at all times be
less than the following during the relevant periods indicated:

 

	
  Relevant period

  	
   

  	
  Consolidated Leverage

  Ratio

  	
   

  
	
  Closing
  through August 10, 2006

  	
   

  	
  67.5

  	
  %

  
	
  August 11,
  2006 through August 10, 2007

  	
   

  	
  65.0

  	
  %

  
	
  August 11,
  2007 through August 10, 2008

  	
   

  	
  62.5

  	
  %

  
	
  August 11,
  2008 through August 10, 2009, as may be applicable during any First
  Extended Term

  	
   

  	
  60.0

  	
  %

  
	
  August 11,
  2009 through August 10, 2010, as may be applicable during any Second
  Extended Term

  	
   

  	
  60.0

  	
  %

  

 

The compliance
with the Consolidated Leverage Ratio covenant shall be tested by the Administrative
Agent on the Calculation Date with results based upon the then current
financial information, as reasonably determined solely by the Administrative
Agent.  If such Consolidated Leverage
Ratio covenant shall not be satisfied on any Calculation Date, the Borrower
shall prepay a sufficient amount of principal outstanding on the Loan 

 

92

 

such that if
such principal reduction had been made on the Calculation Date, the
Consolidated Leverage Ratio covenant would have been satisfied on such Calculation
Date. It shall be an Event of Default if the Borrower fails to make such a
prepayment not later than the first to occur of: (i) ten (10) Business
Days after notice from the Administrative Agent to the Borrower properly
requesting the payment, or (ii) if the Borrower has failed to give the Administrative
Agent and each of the Lenders sufficient reports to enable the Administrative
Agent to make the necessary calculations, forty-five (45) days following the
applicable Calculation Date; provided the Borrower shall have an additional
five (5) days to supply additional information to the Administrative Agent
from the date the Administrative Agent notifies the Borrower that the initial
reports have been deemed insufficient by the Administrative Agent.

 

7.3.3                Minimum
Liquidity.  The sum of all of NMLP’s
and the NMLP’s Subsidiaries Liquid Assets 
(excluding, however, (a) the Liquid Assets of any NMLP Subsidiary
as to which there exists a default or event of default on any Mortgage Debt of
such NMLP Subsidiary, and (b) any amounts contained in the Reinvestment
Account)  must at all times be at least
$5,000,000.00, all of the foregoing as reasonably determined by the Administrative
Agent in a manner consistent with the procedures and methods utilized by the Administrative
Agent in analyzing the financial information provided by NMLP prior to Closing.  Any amounts in excess of the Required T/I
Amount (calculated for this purpose only based upon the projected leasing costs
(as determined by the Administrative Agent) for the following twelve (12) month
period only) contained in the T/I Fund Account shall be included in the
calculation of the minimum required Liquid Assets.  If such Minimum Liquidity shall not be
satisfied on any date of testing, NMLP shall arrange for an infusion of Liquid
Assets in an amount necessary to satisfy the requirements of this Section 7.3.3.   It shall be an Event of Default if NMLP
fails to arrange for any required additional Liquid Assets not later than ten (10) Business
Days after notice from Administrative Agent to the Borrower notifying the
Borrower of the noncompliance.

 

7.3.4                Minimum
Consolidated Net Worth.  Minimum
Consolidated Net Worth shall at all times be equal to or greater $400,000,000.00.  “Minimum Consolidated Net Worth” shall mean
the consolidated net worth of NMLP and the NMLP Subsidiaries using the
Aggregate Investment Capitalization for all NMLP’s Investments, plus all cash
and cash equivalents of NMLP, T-Two and the NMLP Subsidiaries, less the
allocable share of all liabilities respecting the Individual Properties
(excluding the Securitized Notes), and of NMLP, T-Two, and the NMLP
Subsidiaries, as reasonably determined by the Administrative Agent in a manner
consistent with the procedures and methods utilized by the Administrative Agent
in analyzing the financial information provided by NMLP prior to closing.  The compliance with the Minimum Consolidated
Net Worth covenant shall be tested by the Administrative Agent on each
Calculation Date with results based upon the then current financial
information, as reasonably determined by the Administrative Agent in a manner
consistent with the procedures and methods utilized by the Administrative Agent
in analyzing the financial information provided by NMLP prior to Closing.  If such Minimum Consolidated Net Worth
covenant shall not be satisfied on any Calculation Date, 

 

93

 

the
Borrower shall prepay a sufficient amount of principal outstanding on the Loan
such that if such principal reduction had been made on the Calculation Date the
Minimum Consolidated Net Worth covenant would have been satisfied on such
Calculation Date.  It shall be an Event
of Default if the Borrower fails to make such a prepayment not later than the
first to occur of: (i) ten (10) Business Days after notice from Administrative
Agent to the Borrower properly requesting the payment, or (ii) if the
Borrower has failed to give Administrative Agent and each of the Lenders
sufficient reports to enable Administrative Agent to make the necessary
calculations, forty-five (45) days following the applicable Calculation Date;
provided the Borrower shall have an additional five (5) days to supply
additional information to the Administrative Agent from the date the Administrative
Agent notifies the Borrower that the initial reports have been deemed
insufficient by the Administrative Agent.

 

ARTICLE 8

NEGATIVE COVENANTS.

 

8.1                                 NMLP.  NMLP covenants and agrees that from the date
hereof and so long as any NMLP Obligations remain outstanding hereunder, NMLP
shall not (and shall not suffer or permit the other NMLP Loan Parties (except
the Excepted Loan Parties), and/or the NMLP Subsidiaries to):

 

8.1.1                No Changes to
NMLP and other NMLP Loan Parties. Without the prior written consent of the Administrative
Agent, which consent will not be unreasonably withheld, after not less than
thirty (30) days’ prior written notice (with reasonable particularity of the
facts and circumstances attendant thereto): (i) change its jurisdiction of
organization, (ii) change its organizational structure or type, (iii) change
its legal name, or (iv) change the organizational number (if any) assigned
by its jurisdiction of formation or its federal employer identification number
(if any).

 

8.1.2                Restrictions on
Liens.  Create, incur, assume or
suffer to exist any Lien upon or with respect to any property or assets (real
or personal, tangible or intangible, including, without limitation, the
Individual Properties), whether now owned or hereafter acquired, or sell any
such property or assets subject to an understanding or agreement, contingent or
otherwise, to repurchase such property or assets (including sales of accounts
receivable with recourse) or assign any right to receive income or permit the
filing of any financing statement under the UCC or any other similar notice of
Lien under any similar recording or notice statute, or grant rights with
respect to, or otherwise encumber or create a security interest in, such
property or assets (including, without limitation, any item of NMLP Collateral)
or any portion thereof or any other revenues therefrom or the proceeds payable
upon the sale, transfer or other disposition of such property or asset or any
portion thereof, or permit or suffer any such action to be taken, except the
following (singly and collectively, “NMLP Permitted Liens”):

 

(a)                                  Liens
created by the NMLP Loan Documents;

 

94

 

(b)                                 Liens
for taxes, assessments or other governmental charges not yet delinquent or
which are being diligently contested in good faith and by appropriate
proceedings, if (x) reasonable reserves in an amount not less than the tax,
assessment or governmental charge being so contested shall have been
established in a manner reasonably satisfactory to the Administrative Agent or
deposited in cash (or cash equivalents) with the Administrative Agent to be
held during the pendency of such contest, or such contested amount shall have
been duly bonded in accordance with applicable law, (y) no risk of sale,
forfeiture or loss of any interest in any Individual Property or the NMLP
Collateral or any part thereof arises during the pendency of such contest and
(z) such contest does not have and could not reasonably be expected to have a
Material Adverse Effect;

 

(c)                                  Liens
in respect of property or assets imposed by law, which were incurred in the
ordinary course of business and do not secure Debt, such as carriers’,
warehousemen’s, materialmen’s and mechanics’ liens and other similar Liens
arising in the ordinary course of business, and (x) which do not in the
aggregate materially detract from the value of any property or assets or  have, and could not reasonably be expected to
have, a Material Adverse Effect or (y) which are being contested in good faith
by appropriate proceedings, which proceedings have the effect of preventing the
forfeiture or sale of the property or assets subject to any such Lien;

 

(d)                                 Liens
existing as of the Closing Date in favor of (a) the Integrated Group to
secure the Integrated Obligations, and/or (b) the holders of the Mortgage
Debt;

 

(e)                                  A
Lien on an Individual Property which may be granted to secure a Permitted
Refinance;

 

(f)                                    A
Lien on an Individual Property which may be granted to secure Permitted T/I
Debt;

 

(g)                                 A
Lien on an Individual Property which may be granted to secure Permitted Additional
Debt incurred by the owner of such Individual Property; and

 

(h)                                 To
the extent that NMLP or any NMLP Subsidiary or any NMLP Loan Party (except the
Excepted Loan Parties) acquires any other asset, any Lien as to which the
acquisition of such asset is subject.

 

8.1.3                Consolidations,
Mergers, Sales of Assets, Issuance and Sale of Equity.  Except as necessary to complete the IPO, (i) 
Dissolve, terminate, liquidate, consolidate with or merge with or into any
other Person,  (ii) issue, sell,
lease, transfer or assign to any Persons or otherwise dispose of (whether in
one transaction or a series of transactions) any portion of its assets (whether
now owned or hereafter acquired), including, without limitation, any
securities, membership or partnership interests, or other interests of any kind
in any other NMLP Loan Party (except the Excepted Loan Parties) or NMLP
Subsidiary, directly or indirectly (whether by the issuance of rights of, options
or warrants for, or securities convertible into, any such security, membership
or partnership 

 

95

 

interests or other interests of
any kind), (iii) withdraw from or resign as general partner or managing
member of any Person, including, without limitation, any withdrawal or
resignation of: (x) NMLP GP as the general partner of the NMLP, (y) any NMLP
Partnership GP as the general partner of a NMLP Partnership, or (z) the general
partner of each Other Partnership, which general partner is subject to the
control, directly and indirectly, of Newkirk GP LLC, (iv) permit another
Person to merge with or into it, (v) acquire all or substantially all the
capital stock, membership or partnership interests or assets of any other
Person, or (vi) take any action which could have the effect, directly or
indirectly, of diluting the economic interest of any NMLP Loan Party  (except the Excepted Loan Parties) in any
other NMLP Loan Party (except the Excepted Loan Parties)  or NMLP Subsidiary; except the following:

 

(a)                                  Transfers
pursuant to the NMLP Security Documents and other agreements in favor of Administrative
Agent on behalf of the Lenders;

 

(b)                                 Transfers
pursuant to the Integrated Documents;

 

(c)                                  Transfers
or mergers to facilitate a NMLP Permitted Investment (to the extent required,
the Administrative Agent shall release any security interest which it may have
thereon to effectuate such transfer or merger);

 

(d)                                 Mergers
of any Other Partnership into a NMLP Partnership in accordance with the terms
and conditions hereof;

 

(e)                                  Mergers,
consolidations, transfers and sales between and among NMLP Loan Parties (except
the Excepted Loan Parties)  of
partnership interests, membership interests or capital stock, so long as after giving
effect to any such merger, consolidation, transfer or sale, the Administrative
Agent shall have a security interest, directly or through its security interest
in the partnership interests, membership interests or capital stock of another
NMLP Loan Party (except the Excepted Loan Parties), in the partnership
interests, membership interests or capital stock of the NMLP Loan Party (except
the Excepted Loan Parties) which is the survivor of such merger or
consolidation or the recipient of such partnership interests, membership
interests or capital stock transferred and/or sold; provided that in no event
may any such merger, consolidation, transfer or sale cause a Change of Control
or otherwise adversely affect the interests of the Administrative Agent and/or
the Lenders, as determined solely by the Administrative Agent;

 

(f)                                    Sales
of any Individual Property in connection with an Economic Discontinuance Sale,
subject to the terms and conditions of Section 7.1.24
and payment of the required NMLP Mandatory Principal Prepayment related thereto
(to the extent required, the Administrative Agent shall release any security
interest which it may have thereon to effectuate such sale);

 

(g)                                 Sales
of any Individual Property (other than in connection with an Economic Discontinuance
Sale) or the 100% ownership interest of NMLP in any NMLP Partnership or, with
the prior consent of the Administrative Agent, any 

 

96

 

other ownership interest of
NMLP in any NMLP Partnership; provided (a) the Administrative Agent
receives the NMLP Mandatory Principal Prepayment required under Section 2.3.8(b)(ii) above,
(b) the purchaser is an unaffiliated third party, and (c) NMLP
submits to the Administrative Agent an Officer’s Certificate reflecting a
pro-forma calculation that NMLP will be in compliance with the Financial
Covenants considering the consequences of the sale (to the extent required, the
Administrative Agent shall release any security interest which it may have
thereon to effectuate such sale);

 

(h)                                 Sales
or dispositions in the ordinary course of business of worn, obsolete or damaged
items of personal property or fixtures which are suitably replaced (to the
extent required, the Administrative Agent shall release any security interest
which it may have  thereon to effectuate
such sale or disposition);

 

(i)                                     Leases
to the extent provided for herein;

 

(j)                                     After
completion of the IPO, issuance and redemption of partnership interests in
NMLP; and

 

(k)                                  Transactions,
whether outright or as security, for which Administrative Agent’s prior written
consent has been obtained.

 

8.1.4                Restrictions on
Debt.  (i) Create, incur or
assume any Debt, (ii) enter into, acquiesce, suffer or permit any
amendment, restatement or other modification of the documentation evidencing
and/or securing any Debt under which it is an obligor, or (iii) increase
the amount of any Debt existing as of the Closing Date; except with respect to
the following (singly and collectively, “NMLP Permitted Debt”):

 

(a)                                  The
NMLP Obligations;

 

(b)                                 The
following Debt existing as of the Closing Date in the amount disclosed to the Administrative
Agent hereunder:

 

(i)                                     the Mortgage Debt (none of which is recourse to NMLP, except
for the type of recourse obligation set forth in Section 8.1.4(e), below);
and

 

(ii)                                  the Integrated Obligations (none of which is recourse to (x)
NMLP and (y) any NMLP Subsidiary, other than Newkirk GP LLC, Newkirk Capital
LLC, and Newkirk Finco LLC);

 

(c)                                  Debt
described in Schedule 8.1.4(c) annexed hereto;

 

(d)                                 Any
refinancing of any Mortgage Debt provided the new Debt (x) is no greater than
the principal balance of the existing Mortgage Debt being refinanced plus
normal and customary closing costs, (y) has the same maturity, the same or
lower interest rate, same amortization, and the same collateral package as
currently existing Mortgage Debt and (z) is consummated during the primary term
of the applicable lease (“Permitted Refinance”) ;
provided, however, 

 

97

 

that
no refinancing of any Debt otherwise permitted hereunder shall be allowed
unless and until:

 

(i)                                     the
Administrative Agent has received at least thirty (30) days’ prior written
notice of any intended refinancing, which notice shall detail with specificity
the terms and conditions of any such refinancing and shall include complete
copies of any loan application and loan commitment respecting such proposed
refinancing, together with such other materials and information as the Administrative
Agent shall reasonably request;

 

(ii)                                  no Default or Event of Default shall have occurred and then
be continuing; and

 

(iii)                               NMLP
has provided the Administrative Agent with such instruments, documents,
agreements, certifications, and opinions as the Administrative Agent shall reasonably
require with respect thereto.

 

(e)                                  With
respect to any Mortgage Debt, obligations under (i) limited guaranties by
NMLP as to usual and customary exceptions to non-recourse provisions (e.g.,
fraud and misappropriation of funds) provided that such limited guaranties are
evidenced by documentation approved by the Administrative Agent and (ii) indemnifications
by NMLP as to usual  Hazardous Materials
issues relating to the subject Individual Property provided that such
indemnifications are evidenced by documentation customary for transactions of
that type;

 

(f)                                    Indebtedness
constituting Permitted T/I Debt;

 

(g)                                 Indebtedness
constituting Permitted Additional Debt;

 

(h)                                 Indebtedness
incurred in the ordinary course of business for the purchase of goods or
services which are payable, without interest, within thirty (30) days of
billing;

 

(i)                                     Indebtedness
under the Intercompany Loan Documents:

 

(j)                                     Indebtedness
under the Permitted Revolver; and

 

(k)                                  Transactions,
whether secured or unsecured, for which Administrative Agent’s prior written
consent has been obtained.

 

8.1.5                Respecting
Individual Properties.   Permit or
otherwise suffer to occur any event such that the
representations and warranties of NMLP set forth in Section 6.1.18 would
be untrue or misleading in any material respect.

 

8.1.6                Respecting
Ground Lease Extension Options and Remainder Ground Lease Options.  Permit any of the Ground Lease Extension
Options and/or Remainder Ground Lease Options, including, without limitation,
any conditions precedent therein, to lapse, expire, or otherwise remain
unexercised,

 

98

 

or
otherwise permit the expiration of any Ownership Interest Agreement,  without the express prior written consent of
the Administrative Agent.

 

8.1.7                Other Business.   Enter into any line of business or make any
material change in the nature of its business, purposes or operations, except
as otherwise specifically permitted by this Agreement or the other NMLP Loan
Documents.

 

8.1.8                Change of Control.   Permit or otherwise suffer to occur any Change of Control.

 

8.1.9                Forgiveness of
Debt.  Cancel or otherwise forgive or
release any Debt owed to it by any Person, except upon receipt of adequate
consideration or as otherwise approved by the Administrative Agent.

 

8.1.10          Affiliate
Transactions.  On and after
the Closing Date, enter into, or be a party to, any transaction with any Person
who is an Affiliate of NMLP, or any NMLP Subsidiary, or any NMLP Loan Party,
except for (i) the Amended and Restated Asset Management Agreement and the
Contract to Provide Asset Management Services, (ii) any property
management contract for an Individual Property which is no longer subject to a
triple net lease with a management fee not to exceed three percent (3%) of
gross revenue per year, (iii) any construction management contract for
improvements to be made to any Individual Property or NMLP Permitted Investment
acquisition with a construction management fee not to exceed five percent (5%) of
the gross cost of the construction of 
improvements, provided that this Section 8.1.10 shall not apply to
transactions between and among NMLP Loan Parties or to transactions between
NMLP Loan Parties and NMLP Subsidiaries, (iv) the Intercompany Loan
Documents, (v) as contemplated by the Call Option Agreement, and (vi) as
contemplated to complete the IPO including, without  limitation, the transactions set forth in Exhibit Q.

 

8.1.11          Amendments;
Terminations of Related Documents. 
Enter into, acquiesce in, suffer or permit any amendment, restatement or
other modification or termination of any of the Related Documents, without the
express prior written consent of the Administrative Agent (other than the
Formation Documents of any Excepted Loan Party).

 

8.1.12          ERISA.  Except for Code Section 401(k) plans, establish  or be
obligated to contribute to any Plan.

 

8.1.13          Bankruptcy
Filings. File a petition under any state or federal bankruptcy or
insolvency laws or the liquidation of all or a major portion of its assets or
property.

 

8.1.14          Investment
Company.  Become an “investment
company” or a company “controlled” by an “investment company,” within the
meaning of the Investment Company Act of 1940, as amended.

 

99

 

8.1.15          Holding
Company.  Become a “holding
company,” or a “subsidiary company” of a “holding company,” or an “affiliate”
of a “holding company” or of a “subsidiary company” of a “holding company,”
within the meaning of the Public Utility Holding Company Act of 1935, as
amended.

 

8.1.16          Use
of Proceeds.  Permit the
proceeds of the Loan, or any other accommodation at any time made hereunder, to
be used for any purpose which entails a violation of, or is inconsistent with,
Regulation T, U or X of the Board of Governors of the Federal Reserve System,
or for any purpose other than those set forth in Section 1.3.2.

 

8.1.17          Advances
and Loans.  Except for loans
from NMLP to any NMLP Subsidiary, Other Partnerships, or as contemplated by the
NMLP Obligations directly or indirectly, lend money or credit or make advances
to any Person.

 

8.1.18          Distributions.
(i) Authorize, declare, or pay any Distributions on behalf of NMLP, except
for Permitted Distributions, or (ii) take any action which would amend,
modify, or terminate any Distribution due, or the terms of any Formation
Document relating to Distributions due, to NMLP or any NMLP Subsidiary.

 

8.1.19          Restrictions
on Investments.  Make or
permit to exist or to remain outstanding any Investment except which is or
results in (“NMLP Permitted Investments”):

 

(a)                                  marketable direct or guaranteed general obligations of the
United States of America which mature within one year from the date of
purchase;

 

(b)                                 bank
deposits, certificates of deposit and banker’s acceptances, or other
obligations in or of the Lenders or banks located within and chartered by the
United States of America or a state and having assets of over $500,000,000.00;
and

 

(c)                                  NMLP’s
Subsidiaries, subject in all instances to the terms of this Agreement;

 

(d)                                 the acquisition of any asset related to the operation,
ownership or management of the Individual Properties or any of the other assets
of NMLP or the NMLP Subsidiaries;

 

(e)                                  after
the completion of the IPO, the acquisition of Acquired Individual Assets,
subject in all instances to the requirements of Sections 7.1.23; and 8.1.25
below; and

 

(f)                                    the
acquisition of any asset deemed by NMLP to provide  beneficial tax consequences for the limited
partners of the Borrower, but not to exceed the investment of more than
One-Million Dollars ($1,000,000.00) in any Fiscal Year.

 

100

 

All such
Investments shall be made by NMLP in a manner which assures that the Administrative
Agent shall have and maintain a perfected first lien security interest therein.

 

8.1.20          Contracts of a
Material or Significant Nature. 
Except for contracts otherwise complying with this Agreement, not enter
into any other contracts, agreements or purchase orders which would involve the
expenditure of more than $5,000,000.00 in any instance or $5,000,000.00 in the
aggregate without the Administrative Agent’s prior written consent, which
consent shall not be unreasonably withheld or delayed, but which consent may be
conditioned upon a demonstration by NMLP to the Administrative Agent’s
reasonable satisfaction that the contract, agreement or purchase order is
reasonable and that the NMLP Loan Party entering into such contract has
adequate resources to pay and perform the same.

 

8.1.21          Consulting
or Management Fees.  Permit
the payment of any asset management fees in excess of One Million Dollars ($1,000,000.00)
in any Fiscal Year to any Person or enter into any agreement providing asset
management services to NMLP or any NMLP Subsidiary which provides for the
payment of asset management fees in excess of One Million Dollars ($1,000,000.00)
in any Fiscal Year, except pursuant to (i) the Amended and Restated Asset
Management Agreement, (ii) the Contract to Provide Asset Management
Services, and (iii) any property management contract for an Individual
Property which is no longer subject to a triple net lease on terms and
conditions customary in the relevant market area.

 

8.1.22          Negative Pledges,
etc.  Enter into any agreement
subsequent to the Closing Date (other than a NMLP Loan Document) which (a) prohibits
the creation or assumption of any Lien upon any of the NMLP Collateral,
including, without limitation, any hereafter acquired property, (b) specifically
prohibits the amendment or other modification of this Agreement or any other
NMLP Loan Document, or (c) could reasonably be expected to have a Material
Adverse Effect.

 

8.1.23          Newkirk
Business Transactions. 
Conduct any business activities that relate, directly or indirectly, to
the Net Lease Partnerships, their properties or assets through any Person other
than a NMLP Subsidiary, except pursuant to the structure of ownership existing
as of the Closing Date and disclosed to the Administrative Agent.

 

8.1.24          Limitations On Certain Transactions. 
Take any action or otherwise engage in any of the following
transactions, without the express prior written consent of the Administrative
Agent (except as specifically provided below):

 

(a)                                  exercise any right, remedy, power, privilege, or discretion
pursuant to, or amend, modify or waive any provision of, the Call Option
Agreement, subject to Section 7.1.32 above;

 

101

 

(b)                                 exercise (or permit or consent to the exercise of) any
right, remedy, power, privilege, or discretion pursuant to, or amend, modify or
waive any provision of, any Discounted Payment Option; or

 

(c)                                  exercise any right, remedy, power, privilege, or discretion
pursuant to, or amend, modify or waive any provision of, the Reimbursement
Agreement.

 

8.1.25          Acquired Individual
Assets.  Acquire additional real
estate properties, direct or indirect equity or debt interests therein or in
the owners thereof or other related thereto including, without limitation,
mezzanine loans, joint venture interests, “B” certificates, preferred stock and
derivatives (each, an “Acquired Individual Asset”) except upon the following
terms and conditions:

 

(a)                                  In
the event Reinvestment Proceeds are utilized in connection with the acquisition
of such Acquired Individual Asset, the underlying real estate asset is a triple
net leased property to a tenant with an office, retail, warehouse or
manufacturing use, with a credit quality sufficient to provide assurance of its
ability to perform its obligations under the subject lease; otherwise, the
underlying real estate asset is (i) a property that is either (A) triple
net leased or (B) where a tenant leases at least 85% of the rentable
square footage of the property and, in addition to base rent, the tenant is
required to pay some or all of the operating expenses for the property, and, in
both (A) and (B) the lease has a remaining term, exclusive of all
unexercised renewal terms, of more than 18 months, (ii) management
agreements and master leases with terms of greater than three years where a
manager or master lessee bears all operating expenses of the property and pays
the owner a fixed return, (iii) securities of companies including, without
limitation, corporations, partnerships and limited liability companies, whether
or not publicly traded, that are primarily invested in assets that meet the
requirements of clauses (i) and (ii), and (iv) all retenanting and
redevelopment associated with such properties, agreements and leases, and all
activities incidental thereto;

 

(b)                                 Only
in the event Reinvestment Proceeds are utilized in connection with the
acquisition of such Acquired Individual Asset, the Administrative Agent has
approved the acquisition of such Acquired Individual Asset, which approval will
not be unreasonably withheld or delayed;

 

(c)                                  The
Administrative Agent has been provided with such customary due diligence with
respect to such asset as the Administrative Agent may require including,
without limitation, the items set forth in Article 5 above with respect to
such asset or any NMLP Subsidiary formed or acquired in connection with such
asset;

 

(d)                                 The
Borrower and the applicable NMLP Subsidiary shall execute the documents and
take the actions required under Section 7.1.23(j);

 

(e)                                  Only
in the event Reinvestment Proceeds are utilized in connection with the
acquisition of such Acquired Individual Asset, upon receipt by the
Administrative Agent of the due diligence and information set forth above, to
the 

 

102

 

extent
the Administrative Agent’s approval is required hereunder, the Administrative
Agent will advise NMLP within ten (10) Business Days of its approval of
the acquisition, or the basis for its disapproval.

 

8.2                                 T-Two.  T-Two covenants and agrees that from the date
hereof and so long as any T-Two Obligations remain outstanding hereunder, T-Two
shall not (and shall not suffer or permit the other T-Two Loan Parties [other
than the Excepted Loan Parties]):

 

8.2.1                No Changes to
T-Two and other T-Two Loan Parties.  Until such time as the T-Two Acquisition is
completed, without the prior written consent of the Administrative Agent, which
consent will not be unreasonably withheld, after not less than thirty (30) days’
prior written notice (with reasonable particularity of the facts and
circumstances attendant thereto): (i) change its jurisdiction of
organization, (ii) change its organizational structure or type, (iii) change
its legal name, or (iv) change the organizational number (if any) assigned
by its jurisdiction of formation or its federal employer identification number
(if any).

 

8.2.2                Restrictions on
Liens.  Create, incur, assume or
suffer to exist any Lien upon or with respect to any property or assets (real
or personal, tangible or intangible, including, without limitation, the
Individual Properties), whether now owned or hereafter acquired, or sell any
such property or assets subject to an understanding or agreement, contingent or
otherwise, to repurchase such property or assets (including sales of accounts
receivable with recourse) or assign any right to receive income or permit the
filing of any financing statement under the UCC or any other similar notice of
Lien under any similar recording or notice statute, or grant rights with
respect to, or otherwise encumber or create a security interest in, such
property or assets (including, without limitation, any item of T-Two
Collateral) or any portion thereof or any other revenues therefrom or the
proceeds payable upon the sale, transfer or other disposition of such property
or asset or any portion thereof, or permit or suffer any such action to be
taken, except the following (singly and collectively, “T-Two Permitted Liens”):

 

(a)                                  Liens
created by the T-Two Loan Documents;

 

(b)                                 Liens
for taxes, assessments or other governmental charges not yet delinquent or
which are being diligently contested in good faith and by appropriate
proceedings, if (x) reasonable reserves in an amount not less than the tax,
assessment or governmental charge being so contested shall have been
established in a manner reasonably satisfactory to the Administrative Agent or
deposited in cash (or cash equivalents) with the Administrative Agent to be
held during the pendency of such contest, or such contested amount shall have
been duly bonded in accordance with applicable law, (y) no risk of sale, forfeiture
or loss of any interest in the T-Two Collateral or any part thereof arises
during the pendency of such contest and (z) such contest does not have and
could not reasonably be expected to have a Material Adverse Effect; and

 

(c)                                  Liens
in respect of property or assets imposed by law, which were incurred in the
ordinary course of business and do not secure Debt, such as 

 

103

 

carriers’, warehousemen’s,
materialmen’s and mechanics’ liens and other similar Liens arising in the
ordinary course of business, and (x) which do not in the aggregate materially
detract from the value of any property or assets or  have, and could not reasonably be expected to
have, a Material Adverse Effect or (y) which are being contested in good faith
by appropriate proceedings, which proceedings have the effect of preventing the
forfeiture or sale of the property or assets subject to any such Lien.

 

8.2.3                Consolidations,
Mergers, Sales of Assets, Issuance and Sale of Equity.  (i) Dissolve, terminate, liquidate,
consolidate with or merge with or into any other Person,  (ii) take any action which could
have the effect, directly or indirectly, of diluting the economic interest of
any T-Two Loan Party in any other T-Two Loan Party; except the following:

 

(a)                                  Transfers
pursuant to the T-Two Security Documents and other agreements in favor of Administrative
Agent on behalf of the Lenders;

 

(b)                                 Transfers
or mergers to facilitate a T-Two Permitted Investment (to the extent required,
the Administrative Agent shall release any security interest which it may have
thereon to effectuate such transfer or merger);

 

(c)                                  Mergers,
consolidations, transfers and sales between and among T-Two Loan Parties of
partnership interests, membership interests or capital stock, so long as after
giving effect to any such merger, consolidation, transfer or sale, the Administrative
Agent shall have a security interest, directly or through its security interest
in the partnership interests, membership interests or capital stock of another
T-Two Loan Party, in the partnership interests, membership interests or capital
stock of the T-Two Loan Party which is the survivor of such merger or
consolidation or the recipient of such partnership interests, membership
interests or capital stock transferred and/or sold; provided that in no event
may any such merger, consolidation, transfer or sale cause a Change of Control
or otherwise adversely affect the interests of the Administrative Agent and/or
the Lenders, as determined solely by the Administrative Agent;

 

(d)                                 Sales
or dispositions in the ordinary course of business of worn, obsolete or damaged
items of personal property or fixtures which are suitably replaced (to the
extent required, the Administrative Agent shall release any security interest
which it may have  thereon to effectuate
such sale or disposition); and

 

(e)                                  Transactions,
whether outright or as security, for which Administrative Agent’s prior written
consent has been obtained.

 

8.2.4                Restrictions on
Debt.  (i) Create, incur or
assume any Debt, or make any voluntary prepayments of any Debt in respect of
which it is an obligor, (ii) enter into, acquiesce, suffer or permit any
amendment, restatement or other modification of the documentation evidencing
and/or securing any Debt under which it is an obligor, or (iii) increase
the amount of any Debt existing as of the

 

104

 

Closing Date; except with
respect to the following (singly and collectively, “T-Two Permitted Debt”):

 

(a)                                  The
T-Two Obligations;

 

(b)                                 Debt
described in Schedule 8.2.4(b) annexed hereto;

 

(c)                                  Indebtedness
incurred in the ordinary course of business for the purchase of goods or
services which are payable, without interest, within thirty (30) days of
billing; and

 

(d)                                 Transactions,
whether secured or unsecured, for which Administrative Agent’s prior written
consent has been obtained.

 

8.2.5                Other Business.  Until such time as the T-Two Acquisition is
completed, enter into any line of business or make any material change in the
nature of its business, purposes or operations, except as otherwise
specifically permitted by this Agreement or the other T-Two Loan Documents.

 

8.2.6                Change of
Control.  Permit or otherwise suffer
to occur any Change of Control, except pursuant to an
exercise by NMLP of its rights under the Call Option Agreement.

 

8.2.7                Forgiveness of
Debt.  Cancel or otherwise forgive or
release any Debt owed to it by any Person, except upon receipt of adequate
consideration or as otherwise approved by the Administrative Agent or, as may
be required by the terms of the Securitization Documents.

 

8.2.8                Affiliate
Transactions.  Until such time as the
T-Two Acquisition is completed, on and after the Closing Date, enter into, or
be a party to, any transaction with any Person who is an Affiliate of T-Two, or
any T-Two Loan Party, except for the Intercompany Loan or as contemplated by
the Call Option Agreement, provided that this Section 8.2.8 shall not
apply to transactions between and among T-Two Loan Parties.

 

8.2.9                Amendments;
Terminations of Related Documents. 
Enter into, acquiesce in, suffer or permit any amendment, restatement or
other modification or termination of any of the Related Documents, without the
express prior written consent of the Administrative Agent.

 

8.2.10          ERISA.  Except for Code Section 401(k) plans, establish  or be
obligated to contribute to any Plan.

 

8.2.11          Bankruptcy
Filings.  File a petition
under any state or federal bankruptcy or insolvency laws or the liquidation of
all or a major portion of its assets or property.

 

8.2.12          Investment
Company.  Become an “investment
company” or a company “controlled” by an “investment company,” within the
meaning of the Investment Company Act of 1940, as amended.

 

105

 

8.2.13          Holding
Company.  Become a “holding
company,” or a “subsidiary company” of a “holding company,” or an “affiliate”
of a “holding company” or of a “subsidiary company” of a “holding company,”
within the meaning of the Public Utility Holding Company Act of 1935, as
amended.

 

8.2.14          Use
of Proceeds.  Permit the
proceeds of the Loan, or any other accommodation at any time made hereunder, to
be used for any purpose which entails a violation of, or is inconsistent with,
Regulation T, U or X of the Board of Governors of the Federal Reserve, or for
any purpose other than those set forth in Section 1.4.

 

8.2.15          Advances
and Loans.  Except for the
Intercompany Loan, directly or indirectly, lend money or credit or make
advances to any Person.

 

8.2.16          Distributions.  Until such time as the T-Two Acquisition is
completed, authorize, declare, or pay any Distributions on behalf of T-Two.

 

8.2.17          Restrictions
on Investments.  Make or
permit to exist or to remain outstanding any Investment except which is or
results in (“T-Two Permitted Investments”):

 

(a)                                  marketable
direct or guaranteed general obligations of the United States of America which
mature within one year from the date of purchase; and

 

(b)                                 bank deposits, certificates of deposit and banker’s acceptances,
or other obligations in or of the Lenders or banks located within and chartered
by the United States of America or a state and having assets of over
$500,000,000.00.

 

All such
Investments shall be made by T-Two in a manner which assures that Administrative
Agent shall have and maintain a perfected first lien security interest therein.

 

8.2.18          Contracts of a
Material or Significant Nature. 
Except for contracts otherwise complying with this Agreement, not enter
into any other contracts, agreements or purchase orders which would involve the
expenditure of more than $5,000,000.00 in any instance or $5,000,000.00 in the
aggregate without Administrative Agent’s prior written consent, which consent
shall not be unreasonably withheld or delayed, but which consent may be
conditioned upon a demonstration by T-Two to Administrative Agent’s reasonable
satisfaction that the contract, agreement or purchase order is reasonable and
that the T-Two Loan Party entering into such contract has adequate resources to
pay and perform the same.

 

8.2.19          Negative Pledges,
etc.  Enter into any agreement
subsequent to the Closing Date (other than a T-Two Loan Document) which (a) prohibits
the creation or assumption of any Lien upon any of the T-Two Collateral,
including, without limitation, any hereafter acquired property, (b) specifically
prohibits the amendment or other modification of this Agreement or any other
T-Two Loan 

 

106

 

Document,
or (c) could reasonably be expected to have a Material Adverse Effect.

 

8.2.20          Limitations On Certain Transactions. 
Take any action or otherwise engage in any of the following
transactions, without the express prior written consent of the Administrative
Agent (except as specifically provided below):

 

(a)                                  exercise any right, remedy, power, privilege, or discretion
pursuant to,  or amend, modify or waive
any provision of, the Call Option Agreement;

 

(b)                                 exercise any right, remedy, power, privilege, or discretion
pursuant to, or amend, modify or waive any provision of, or consent to he
exercise of ,any Discounted Payment Option;

 

(c)                                  exercise any right, remedy, power, privilege, or discretion
pursuant to,  or amend, modify or waive
any provision of, the Intercompany Loan Documents;

 

(d)                                 exercise
any right, remedy, power, privilege, or discretion pursuant to, or amend,
modify or waive any provision of, any of the Securitized Notes, the Securitized
Mortgages or any of the other Securitization Documents, including, without
limitation, (a) the exercise any rights of approval with respect to any
proposed acceptance or rejection by a Net Lease Partnership of any Rejectable
Offer or any similar offer by the payor under any Securitized Note, or (b) the
exercise of any rights or remedies as a result of any default under any  Securitized Note or Securitized Mortgage; or

 

(e)                                  exercise any right, remedy, power, privilege, or discretion
pursuant to, or amend, modify or waive any provision of, the Reimbursement
Agreement.

 

ARTICLE 9

SPECIAL PROVISIONS.

 

9.1                                 Legal
Requirements.  Each Borrower, each
Subsidiary of either Borrower, any Other Partnership, or any Partially Owned
Limited Partnership may contest in good faith any claim, demand, levy or
assessment under any Legal Requirements or taxes owed by such Person if: (i) the
contest is based upon a material question of law or fact raised by such Person
in good faith; (ii) such Person properly commences and thereafter
diligently pursues the contest; (iii) the contest will not materially
impair the ability to ultimately comply with the contested Legal Requirement
should the contest not be successful; (iv) reasonable reserves in an
amount necessary to undertake and pay for such contest and any corrective or
remedial action then or thereafter reasonably likely to be necessary shall have
been established in a manner satisfactory to the Administrative Agent or
deposited in cash (or cash equivalents) with the Administrative Agent to be
held during the pendency of such contest, or such contested amount shall have
been duly bonded in accordance with applicable law; (v) if the contest
relates to a Legal Requirement under Environmental Law, the conditions set
forth in the Environmental Indemnity relating to such contests shall be
satisfied; (vi) no risk of sale, forfeiture or loss of any interest in any

 

107

 

Individual Property or the Collateral or any part thereof arises during
the pendency of such contest; and (vii) such contest does not have and
could not reasonably be expected to have a Material Adverse Effect.

 

9.2                                 NMLP
Distributions.

 

9.2.1                Notice of
Intention to Distribute.  At least
ten (10) Business Days prior to making any Distribution to its partners,
NMLP shall submit to Administrative Agent a written statement of its intent to
make such Distribution accompanied by an Officer’s Certificate reflecting a
pro-forma calculation that NMLP will be in compliance with the Financial
Covenants after the proposed Distribution, together with such other
documentation and information as Administrative Agent may reasonably require (“Notice
of Intention to Distribute”) in order to verify that NMLP is entitled to make a
Distribution as provided for herein.

 

9.2.2                Conditions Must
Be Satisfied.  If the Administrative
Agent objects to such proposed Distribution on the basis that the conditions
thereto are not satisfied, or that further information is required, Administrative
Agent may, by written notice to NMLP given within ten (10) Business Days
following receipt of NMLP’s Notice of Intention to Distribute, prohibit the
proposed Distribution until such time as the Administrative Agent is reasonably
satisfied that the conditions have been satisfied.

 

9.2.3                Current
Information.  Once Administrative
Agent has received a Notice of Intention to Distribute and a Distribution has
been made in accordance with the foregoing, subsequent Notices of Intention to
Distribute submitted within the next 12 months shall not require the submission
of new financial information if NMLP submits a sworn affidavit and
unconditional representation that there have been no material adverse changes,
unless Administrative Agent has a good faith basis for requiring the same.

 

9.3                                 Limited
Recourse Provisions.

 

9.3.1                Borrower Fully
Liable.

 

(a)                                  NMLP
shall be fully liable for the NMLP Loan and the NMLP Obligations to each of the
Lenders.

 

(b)                                 T-Two
shall be fully liable for the T-Two Loan and the T-Two Obligations to each of
the Lenders.

 

9.3.2                Certain
Non-Recourse.

 

(a)                                  The
NMLP Loan shall be on a non-recourse basis to all limited partners of NMLP,
except to the extent provided for in any NMLP Loan Document executed by any
such limited partner on its own behalf.

 

108

 

(b)                                 The
T-Two Loan shall be on a non-recourse basis to all limited partners of T-Two,
except to the extent provided for in any T-Two Loan Document executed by any
such limited partner on its own behalf.

 

9.3.3                Additional
Matters.  Nothing contained in this Section 9.3
or elsewhere shall: (i) limit the right of Administrative Agent or any of
the Lenders to obtain injunctive relief or to pursue equitable remedies under
any of the NMLP Loan Documents or any of the T-Two Loan Documents, excluding
only any injunctive relief ordering payment of obligations by any Person or entity
for which personal liability does not otherwise exist; or (ii) limit the
liability of any attorney, law firm, accountant or other professional who or
which renders or provides any written opinion or certificate to Administrative
Agent or any of the Lenders in connection with the Loan even though such person
or entity may be a limited partner of either NMLP or T-Two.

 

9.4                                 Payment
of Obligations.

 

9.4.1                Upon the payment
in full of the NMLP Obligations, in immediately available funds, including,
without limitation, all unreimbursed costs and expenses of the Administrative
Agent and of each Lender for which NMLP is responsible, the Administrative
Agent shall release any security and other collateral interests, including,
without limitation, the NMLP Payment Direction Letters, rights of setoff and
right to freeze granted to the Administrative Agent as provided for herein and
under the other NMLP Loan Documents and shall execute and deliver such
documents and termination statements as NMLP or any other NMLP Loan Party
reasonably requests to evidence such termination and release.  However, such release by the Administrative
Agent shall not be deemed to terminate or release any Person from any
obligation or liability under the NMLP Loan Documents which specifically by its
terms survives the payment in full of the NMLP Obligations.

 

9.4.2                Upon the payment
in full of the T-Two Obligations, in immediately available funds, including,
without limitation, all unreimbursed costs and expenses of the Administrative
Agent and of each Lender for which T-Two is responsible, the Administrative
Agent shall release any security and other collateral interests, including,
without limitation, the T-Two Payment Direction Letters, rights of setoff and
right to freeze granted to the Administrative Agent as provided for herein and
under the other T-Two Loan Documents and shall execute and deliver such
documents and termination statements as T-Two or any other T-Two Loan Party
reasonably requests to evidence such termination and release.  However, such release by the Administrative
Agent shall not be deemed to terminate or release any Person from any
obligation or liability under the T-Two Loan Documents which specifically by
its terms survives the payment in full of the T-Two Obligations.

 

109

 

ARTICLE 10

EVENTS OF DEFAULT

 

The following provisions deal with Default, Events of Default, notice,
grace and cure periods, and certain rights of Administrative Agent following an
Event of Default.

 

10.1                           Default
and Events of Default.  The term “Default”
as used herein or in any of the other Loan Documents shall mean an Event of Default, or any fact or circumstance which constitutes, or
upon the lapse of time, or giving of notice, or both, could constitute, an
Event of Default. The occurrence of any of the following events, respectively,
shall, subject to the giving of any notice or the expiration of any applicable
grace period referred to in Section 10.2 without the cure thereof,
constitute an “Event of Default” herein. 
Upon the occurrence of any Event of Default described in Sections 10.1.1(h) or
10.1.2(h), any and all Obligations shall become due and payable without any
further act on the part of the Administrative Agent. Upon the occurrence of any
other Event of Default, the Administrative Agent or the Required Lenders may
declare any and all Obligations immediately due and payable.  The occurrence and continuance of any Event
of Default shall also constitute, without notice or demand, a default under all
other agreements between the Administrative Agent and/or the Lenders and either
Borrower and instruments and papers heretofore, now, or hereafter given the Administrative
Agent and/or the Lenders by either Borrower.

 

10.1.1          NMLP.

 

(a)                                  Failure
to Pay the Loans.  The
failure by NMLP to pay when due any principal of, interest on, or fees in
respect of, the NMLP Loan.

 

(b)                                 Failure
to Make Other Payments.  The failure
by NMLP to pay when due (or upon demand, if payable on demand) any payment with
respect to an NMLP Obligation other than any payment with respect to an NMLP
Obligation on account of the principal of, or interest on, or fees in respect
of, the NMLP Loan.

 

(c)                                  NMLP
Note, NMLP Security Documents, and Other NMLP Loan Documents.  Any other default in the performance of any
term or provision of the NMLP Note, or of the NMLP Security Documents, or of
any of the other NMLP Loan Documents, or a breach, or other failure to satisfy,
any other term, provision, condition or warranty under the NMLP Note, the NMLP
Security Documents, or any other NMLP Loan Document, regardless of whether any
then undisbursed portion of the NMLP Loan is sufficient to cover any payment of
money required thereby, and the specific grace period, if any, allowed for the
default in question shall have expired without such default having been cured.

 

(d)                                 Default
under Other Agreements.  The
occurrence of any breach of any covenant or NMLP Obligation imposed by, or of
any default under, any agreement (including any NMLP Loan Document) between the
Administrative Agent and/or the Lenders and NMLP, the other NMLP Loan Parties,
and/or the Net Lease Partnerships or instrument given by NMLP and such Persons
to the Administrative Agent and/or the Lenders and the expiry, without cure, of
any applicable grace period (notwithstanding that the Administrative Agent
and/or the Lenders may not have exercised all or any of its/their rights on
account of such breach or default).

 

110

 

(e)                                  Representations
and Warranties.  If any
representation or warranty made by NMLP or by any of the other NMLP Loan
Parties or the NMLP Subsidiaries in the NMLP Loan Documents was untrue or
misleading in a manner which could reasonably be expected to have a Material
Adverse Effect.

 

(f)                                    Affirmative
Covenants.  The breach of any
covenant contained in Sections 7.1 or 7.3 herein, including, without
limitation, the Financial Covenants.

 

(g)                                 Negative
Covenants.  The breach of any
covenant contained in Section 8.1 herein.

 

(h)                                 Financial
Status and Insolvency.

 

(i)                                     NMLP
shall: (i) admit in writing its inability to pay its debts generally as
they become due; (ii) file a petition in bankruptcy or a petition to take
advantage of any insolvency act; (iii) make an assignment for the benefit
of creditors; (iv) consent to, or acquiesce in, the appointment of a
receiver, liquidator or trustee of itself or of the whole or any substantial
part of its properties or assets; (v) file a petition or answer seeking
reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under the Federal Bankruptcy laws or any other
applicable law; (vi) have a court of competent jurisdiction enter an
order, judgment or decree appointing a receiver, liquidator or trustee of NMLP,
or of the whole or any substantial part of the property or assets of NMLP, and
such order, judgment or decree shall remain unvacated or not set aside or
unstayed for sixty (60) days; (vii) have a petition filed against it
seeking reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under the Federal Bankruptcy laws or any other
applicable law and such petition shall remain undismissed for sixty (60) days; (viii) have,
under the provisions of any other law for the relief or aid of debtors, any
court of competent jurisdiction assume custody or control of NMLP or of the
whole or any substantial part of its property or assets and such custody or
control shall remain unterminated or unstayed for sixty (60) days; or (ix) have
an attachment or execution levied against any substantial portion of the
property of NMLP or against any substantial portion of the NMLP Collateral
which is not discharged or dissolved by a bond within thirty (30) days; or

 

(ii)                                  any such event set forth in subsection (i) above
shall occur with respect to (i) a NMLP Partnership only if the Subsidiary
Bankruptcy Test has been triggered, (ii) any Newkirk Indemnitor, or (iii) any
NMLP Subsidiary other than a Net Lease Partnership;

 

(i)                                     Loan
Documents.  If any NMLP Loan Document
for any reason other than the satisfaction in full of all NMLP Obligations
shall cease to be in full force and effect (other than in accordance with its
terms), thereby preventing the Administrative Agent and/or the Lenders from
obtaining the practical realization of the benefits thereof, or if any NMLP
Loan Document shall be declared null and 

 

111

 

void or any NMLP Loan Party
shall claim or declare any such NMLP Loan Document to no longer be in full
force and effect or is null and void, or if the Liens and security interests
purported to be created by any of the NMLP Loan Documents shall cease to be
valid, perfected, first priority (except as otherwise expressly provided herein)
security interests;

 

(j)                                     Judgments.  One or more judgments or decrees shall be
entered against NMLP or any NMLP Loan Party (except for the MLP Holders, the
Other Partnerships, or the Partially Owned Limited Partnerships) or NMLP
Subsidiary involving a liability (not paid or fully covered by a reputable and
solvent insurance company) and such judgments and decrees either shall be final
and non-appealable or shall not be vacated, discharged or stayed or bonded
pending appeal for any period of sixty (60) consecutive days, and the aggregate
amount of all such judgments exceeds $750,000.00;

 

(k)                                  Default
of Other Specified Debt and Related Documents.  If a Default or Event of Default (regardless
of how or if defined) shall occur in any one or more of the following, as to
which Default or Event of Default the holder has accelerated the obligations
due thereunder and commenced exercising its rights upon such Default or Event
of Default:

 

(i)                                     The
Integrated Obligations; and/or

 

(ii)                                  Any
Mortgage Debt, but only if the Mortgage Debt Test has been triggered.

 

(l)                                     ERISA.  (i) If any Plan shall fail to satisfy
the minimum funding standard required for any plan year or part thereof or a
waiver of such standard or extension of any amortization period is sought or
granted under Section 412 of the Code, any Plan shall have had or is
likely to have a trustee appointed to administer such Plan, any Plan is, shall
have been or is likely to be terminated or to be the subject of termination
proceedings under ERISA, any Plan shall have an Unfunded Current Liability, a
contribution required to be made to a Plan has not been timely made, NMLP or
any NMLP Subsidiary or any ERISA Affiliate has incurred or is likely to incur a
liability to or on account of a Plan under Section 409, 502(i), 502(l),
515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 401(a)(29),
4971, 4975 or 4980 of the Code, or NMLP or any NMLP Subsidiary has incurred or
is likely to incur liabilities pursuant to one or more employee welfare benefit
plans (as defined in Section 3(l) of ERISA) that provide benefits to
retired employees or other former employees (other than as required by Section 601
of ERISA) or employee pension benefit plans (as defined in Section 3(2) of
ERISA) and any of the foregoing could have a Material Adverse Effect; (ii) if
there shall result from any such event or events the imposition of a lien, the
granting of a security interest, or a liability or a material risk of incurring
a liability which could have, or reasonably be expected to have, a Material
Adverse Effect; or (iii) if which lien, security interest or liability,
individually, and/or in the aggregate, in the opinion of the Administrative
Agent could have, or reasonably be expected to have, a Material Adverse Effect.

 

112

 

(m)                               Change
of Control.  If a Change of Control
shall occur.

 

(n)                                 Indictment;
Forfeiture.  The indictment of, or
institution of any legal process or proceeding against, NMLP, any other NMLP
Loan Party (except for an Excepted Loan Party), and/or any NMLP Subsidiary
under any applicable law where the relief, penalties, or remedies sought or
available include the forfeiture of any property of NMLP and/or any other such
Person and/or the imposition of any stay or other order, the effect of which
could reasonably be expected to have a Material Adverse Effect.

 

(o)                                 Default
of Other Obligations.  Any failure by
NMLP to pay at maturity, or within any applicable grace period, any obligation
for borrowed money, or in respect of any capitalized lease, or any failure to
observe or perform any material term, covenant or agreement contained in any
agreement by which NMLP is bound, evidencing or securing borrowed money, or in
respect of any capitalized lease, such that the holder or holders thereof or of
any obligations issued thereunder have accelerated the maturity thereof.

 

(p)                                 Termination
of NMLP Guaranty or NMLP Consent.  The termination or attempted termination of (i) any NMLP
Guaranty by any NMLP Guarantor of the Obligations, or (ii) Newkirk
Indemnification by any Newkirk Indemnitor.

 

(q)                                 Generally.  A default by NMLP in the performance of any
term, provision or condition of this Agreement to be performed by NMLP, or a
breach, or other failure to satisfy, any other term provision, condition,
covenant or warranty under this Agreement and such default remains uncured
beyond any applicable specific grace period provided for in this Agreement, or
as set forth in Section 10.2. below.

 

(r)                                    Other.
 The occurrence of any
Event of Default under Section 10.1.2 below.

 

10.1.2          T-Two.

 

(a)                                  Failure
to Pay the Loans.  The failure by
T-Two to pay when due any principal of, interest on, or fees in respect of, the
T-Two Loan.

 

(b)                                 Failure
to Make Other Payments.  The failure
by T-Two to pay when due (or upon demand, if payable on demand) any payment with
respect to any T-Two Obligation other than any payment with respect to any T-Two
Obligation on account of the principal of, or interest on, or fees in respect
of, the T-Two Loan.

 

(c)                                  T-Two
Note, T-Two Security Documents, and Other T-Two Loan Documents.  Any other default in the performance of any
term or provision of the T-Two Note, or of the T-Two Security Documents, or of
any of the other T-Two Loan Documents, or a breach, or other failure to satisfy,
any other term, provision, condition or warranty under the T-Two Note, the
T-Two Security 

 

113

 

Documents, or any other T-Two
Loan Document, regardless of whether any then undisbursed portion of the T-Two
Loan is sufficient to cover any payment of money required thereby, and the
specific grace period, if any, allowed for the default in question shall have
expired without such default having been cured.

 

(d)                                 Default
under Other Agreements.  The occurrence
of any breach of any covenant or T-Two Obligation imposed by, or of any default
under, any agreement (including any T-Two Loan Document) between the Administrative
Agent and/or the Lenders and T-Two, the other T-Two Loan Parties, or instrument
given by T-Two and such Persons to the Administrative Agent and/or the Lenders
and the expiry, without cure, of any applicable grace period  (notwithstanding that the Administrative
Agent and/or the Lenders may not have exercised all or any of its/their rights
on account of such breach or default).

 

(e)                                  Representations
and Warranties.  If any
representation or warranty made by T-Two or by any of the other T-Two Loan
Parties in the T-Two Loan Documents was untrue or misleading in a manner which
could reasonably be expected to have a Material Adverse Effect.

 

(f)                                    Affirmative
Covenants.  The breach of any
covenant contained in Sections 7.2 or 7.3  herein, including, without limitation,
the Financial Covenants.

 

(g)                                 Negative
Covenants.  The breach of any
covenant contained in Section 8.2 herein.

 

(h)                                 Financial
Status and Insolvency.

 

(i)                                     T-Two
shall: (i) admit in writing its inability to pay its debts generally as
they become due; (ii) file a petition in bankruptcy or a petition to take
advantage of any insolvency act; (iii) make an assignment for the benefit
of creditors; (iv) consent to, or acquiesce in, the appointment of a
receiver, liquidator or trustee of itself or of the whole or any substantial
part of its properties or assets; (v) file a petition or answer seeking
reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under the Federal Bankruptcy laws or any other
applicable law; (vi) have a court of competent jurisdiction enter an
order, judgment or decree appointing a receiver, liquidator or trustee of
T-Two, or of the whole or any substantial part of the property or assets of
T-Two, and such order, judgment or decree shall remain unvacated or not set
aside or unstayed for sixty (60) days; (vii) have a petition filed against
it seeking reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under the Federal Bankruptcy laws or any other
applicable law and such petition shall remain undismissed for sixty (60) days; (viii) have,
under the provisions of any other law for the relief or aid of debtors, any
court of competent jurisdiction assume custody or control of T-Two or of the
whole or any substantial part of its property or assets and such custody or
control shall remain unterminated or unstayed for sixty (60) days; or (ix) have
an attachment or execution levied against any substantial portion of the 

 

114

 

property of T-Two or against
any substantial portion of the T-Two Collateral which is not discharged or
dissolved by a bond within thirty (30) days; or

 

(ii)                                  any such event set forth in subsection (i) above
shall occur with respect to any T-Two Loan Party;

 

(i)                                     Loan
Documents.  If any T-Two Loan
Document for any reason other than the satisfaction in full of all T-Two
Obligations shall cease to be in full force and effect (other than in
accordance with its terms), thereby preventing the Administrative Agent and/or
the Lenders from obtaining the practical realization of the benefits thereof,
or if any T-Two Loan Document shall be declared null and void or any T-Two Loan
Party shall claim or declare any such T-Two Loan Document to no longer be in
full force and effect or is null and void, or if the Liens and security
interests purported to be created by any of the T-Two Loan Documents shall
cease to be valid, perfected, first priority (except as otherwise expressly
provided herein) security interests;

 

(j)                                     Judgments.  One or more judgments or decrees shall be
entered against T-Two or any T-Two Loan Party (except for any Excepted Loan
Party) involving a liability (not paid or fully covered by a reputable and
solvent insurance company) and such judgments and decrees either shall be final
and non-appealable or shall not be vacated, discharged or stayed or bonded
pending appeal for any period of sixty (60) consecutive days, and the aggregate
amount of all such judgments exceeds $750,000.00;

 

(k)                                  ERISA.  (i) If any Plan shall fail to satisfy
the minimum funding standard required for any plan year or part thereof or a
waiver of such standard or extension of any amortization period is sought or
granted under Section 412 of the Code, any Plan shall have had or is
likely to have a trustee appointed to administer such Plan, any Plan is, shall
have been or is likely to be terminated or to be the subject of termination
proceedings under ERISA, any Plan shall have an Unfunded Current Liability, a
contribution required to be made to a Plan has not been timely made, T-Two or
any ERISA Affiliate has incurred or is likely to incur a liability to or on
account of a Plan under Sections 409, 502(i), 502(l), 515, 4062, 4063, 4064,
4069, 4201, 4204 or 4212 of ERISA or Sections 401(a)(29), 4971, 4975 or 4980 of
the Code, or T-Two has incurred or is likely to incur liabilities pursuant to
one or more employee welfare benefit plans (as defined in Section 3(l) of
ERISA) that provide benefits to retired employees or other former employees
(other than as required by Section 601 of ERISA) or employee pension
benefit plans (as defined in Section 3(2) of ERISA) and any of the
foregoing could have a Material Adverse Effect; (ii) if there shall result
from any such event or events the imposition of a lien, the granting of a
security interest, or a liability or a material risk of incurring a liability
which could have, or reasonably be expected to have, a Material Adverse Effect;
or (iii) if such lien, security interest or liability, individually,
and/or in the aggregate, in the opinion of the Administrative Agent could have,
or reasonably be expected to have, a Material Adverse Effect.

 

(l)                                     Change
of Control.  If a Change of Control
shall occur.

 

115

 

(m)                               Indictment;
Forfeiture.  The indictment of, or
institution of any legal process or proceeding against, T-Two, any other T-Two
Loan Party (except for an Excepted Loan Party),under
any applicable law where the relief, penalties, or remedies sought or available
include the forfeiture of any property of T-Two and/or any other such Person
and/or the imposition of any stay or other order, the effect of which could
reasonably be expected to have a Material Adverse Effect.

 

(n)                                 Default
of Other Obligations.  Any failure by
T-Two to pay at maturity, or within any applicable grace period, any obligation
for borrowed money, or in respect of any capitalized lease, or any failure to
observe or perform any material term, covenant or agreement contained in any
agreement by which T-Two is bound, evidencing or securing borrowed money, or in
respect of any capitalized lease, such that the holder or holders thereof or of
any obligations issued thereunder have accelerated the maturity thereof.

 

(o)                                 Termination
of T-Two Guaranty or T-Two Consent.  The termination or attempted termination of any T-Two Guaranty by
any T-Two Guarantor of the Obligations.

 

(p)                                 Generally.  A default by T-Two in the performance of any
term, provision or condition of this Agreement to be performed by T-Two, or a
breach, or other failure to satisfy, any other term provision, condition,
covenant or warranty under this Agreement and such default remains uncured
beyond any applicable specific grace period provided for in this Agreement, or
as set forth in Section 10.2. below.

 

(q)                                 Other.  The occurrence of any Event
of Default under Section 10.1.1 above.

 

10.2                           Grace
Periods and Notice.  As to each of
the foregoing events the following provisions relating to grace periods and
notice shall apply:

 

10.2.1          No Notice or Grace
Period.  Except for any grace or
notice period specifically provided for in any referenced section of this
Agreement, there shall be no grace period and no notice provision with respect
to the payment of principal at maturity and no grace period and no notice
provision with respect to defaults related to the voluntary filing of
bankruptcy or reorganization proceedings or an assignment for the benefit of
creditors, or with respect to a breach of warranty or representation as set
forth in Section 10.1.1(e) or 10.1.2(e), or with respect to the
breach of any of the affirmative covenants set forth in Sections 7.1.1, 7.2.1 7.1.24,
7.3.2, 7.3.3, and 7.3.4, or any Event of Default under Sections 10.1.1(r) and 10.1.2(q).

 

10.2.2          Nonpayment of
Interest and Principal.  As to the
nonpayment of interest,  installments of
principal, and in connection with a Mandatory Principal Prepayment prior to
maturity there shall be a ten (10) Business Day grace period without any
requirement of notice from Administrative Agent.

 

116

 

10.2.3          Other Monetary
Defaults.  All other monetary
defaults shall have a five (5) Business Day grace period following notice
from Administrative Agent.

 

10.2.4          Nonmonetary Defaults.

 

(a)                                  As
to non-monetary default under Section 7.1.2, , 7.1.22, 7.1.23, or 7.1.24 with
respect to the breach of any of the negative covenants set forth in Article 8,
there shall be a ten (10) day grace period following notice from Administrative
Agent of such default;

 

(b)                                 As
to non-monetary default under Section 7.1.16(a), 7.1.28 or 7.2.22, there
shall be a five (5) day grace period following notice from Administrative
Agent of such default;

 

(c)                                  As
to any other non-monetary default, unless there is a specific shorter or longer
grace period provided for in this Loan Agreement or in another Loan Document,
there shall be a thirty (30) day grace period following notice from Administrative
Agent or, if such default would reasonably require more than thirty (30) days
to cure or remedy, such longer period of time not to exceed a total of ninety
(90) days from Administrative Agent’s notice as may be reasonably required so
long as Borrower shall commence reasonable actions to remedy or cure the
default within thirty (30) days following such notice and shall diligently
prosecute such curative action to completion within such ninety (90) day
period.  However, where there is an
emergency situation in which there is danger to person or property such
curative action shall be commenced as promptly as possible.  As to breaches of
warranties and representations (other than those related to financial
information) there shall be a thirty (30) day grace period following notice
from Administrative Agent.

 

ARTICLE 11

REMEDIES.

 

11.1                           Remedies.
 Upon the occurrence and during the
continuance of an Event of Default, whether or not the indebtedness evidenced
by the Notes and secured by the Security Documents shall be due and payable or Administrative
Agent shall have instituted any foreclosure or other action for the enforcement
of the Security Documents or the Notes, Administrative Agent may, and shall
upon the direction of the Required Lenders, in addition to any other remedies
which Administrative Agent may have hereunder or under the other Loan
Documents, or otherwise, and not in limitation thereof, and in Administrative
Agent’s sole and absolute discretion:

 

11.1.1          Accelerate Debt.  Administrative Agent may, and with the
direction of the Required Lenders shall, declare the indebtedness evidenced by
the Notes and secured by the Security Documents immediately due and payable
(provided that in the case of a voluntary petition in bankruptcy filed by
either Borrower or an involuntary petition in bankruptcy filed against either
Borrower 

 

117

 

(after
expiration of the grace period, if any, set forth in Sections 10.1.1(h) or
10.1.2(h), such acceleration shall be automatic).

 

11.1.2          Pursue Remedies.  Administrative Agent may, and with the
direction of the Required Lenders shall, 
pursue any and all remedies provided for hereunder, under any one or
more of the other Loan Documents, and/or otherwise.

 

11.2                           Written
Waivers.  Except as otherwise
provided in Section 13.4, if a Default or an Event of Default is waived by
the Required Lenders, in their sole discretion, pursuant to a specific written
instrument executed by an authorized officer of the Administrative Agent, the
Default or Event of Default so waived shall be deemed to have never occurred.

 

11.3                           Power
of Attorney.  For the purpose of
exercising the rights granted by this Article 11, as well as any and all
other rights and remedies of the Administrative Agent under the Loan Documents,
each Borrower hereby irrevocably constitutes and appoints the Administrative
Agent (or any agent designated by the Administrative Agent) its true and lawful
attorney-in-fact, with full power of substitution, upon the occurrence and
during the continuance of any Event of Default, to execute, acknowledge and
deliver any instruments and to do and perform any acts in the name and on
behalf of each Borrower.  In connection
with the foregoing power of attorney, each Borrower hereby grants unto the Administrative
Agent (acting through any of its officers) full power to do any and all things
after the occurrence and during the continuance of an Event of Default
necessary or appropriate in connection with the exercise of such powers as
fully and effectually as each Borrower might or could do, hereby ratifying all
that said attorney shall do or cause to be done by virtue of this Agreement.  The foregoing power of attorney shall not be
affected by any disability or incapacity suffered by each Borrower and shall
survive the same.  All powers conferred
upon the Administrative Agent by this Agreement, being coupled with an
interest, shall be irrevocable until this Agreement is terminated by a written
instrument executed by a duly authorized officer of the Administrative Agent.

 

ARTICLE 12

SECURITY INTEREST AND SET-OFF.

 

12.1                           Security
Interest.  Each Borrower hereby
grants to the Administrative Agent and each of the Lenders, a continuing lien,
security interest and right of setoff as security for all of the Obligations to
Administrative Agent and each of the Lenders, whether now existing or hereafter
arising, upon and against all Depository Accounts, Accounts, deposits, credits,
collateral and property, now or hereafter in the possession, custody,
safekeeping or control of Administrative Agent or any of the Lenders or any
entity under the control of KeyBank, National Association, Bank of America,
N.A.  and their
successors and assigns, or in transit to any of them.

 

12.2                           Set-Off.  After the occurrence and during the
continuance of any Event of Default, any such Depository Accounts, Accounts,
deposits, balances or other sums credited by or due from the Administrative
Agent, the Deposit Account Co-Agent, any affiliate of the Administrative Agent,
the Deposit Account Co-Agent, or any of the Lenders, or from any such affiliate
of any of the Lenders, to each Borrower may to the fullest extent not
prohibited by applicable law at any time or from time to time, without regard
to the existence, sufficiency or 

 

118

 

adequacy of any other collateral, and without notice or compliance with
any other condition precedent now or hereafter imposed by statute, rule of
law or otherwise, all of which are hereby waived, be set off, appropriated and
applied by Administrative Agent against any or all of such Borrower’s
Obligations irrespective of whether demand shall have been made, in such manner
as Administrative Agent in its sole and absolute discretion may determine.  Within three (3) Business Days of making
any such set off, appropriation or application, Administrative Agent agrees to
notify such Borrower thereof, provided the failure to give such notice shall
not affect the validity of such set off or appropriation or application.  ANY AND ALL RIGHTS TO REQUIRE AGENT OR ANY OF
THE LENDERS TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER
COLLATERAL WHICH SECURES A LOAN, PRIOR TO EXERCISING ITS
RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF
SUCH BORROWER OR ANY GUARANTOR, ARE HEREBY KNOWINGLY, VOLUNTARILY AND
IRREVOCABLY WAIVED.

 

12.3                           Application.  Each of the Lenders agrees with each other
Lender that with respect to this Agreement or under any other Loan Document (a) if
an amount to be set off is to be applied to indebtedness of a Borrower or any
other Loan Party to such Lender, other than the respective Obligations due to
such Lender, such amount shall be applied ratably to such other indebtedness
and to such Borrower’s Obligations due to such Lender, and (b) if such
Lender shall receive from a Borrower or any other Loan Party, whether by
voluntary payment, exercise of the right of setoff, counterclaim, cross action,
enforcement of the claim due to such Lender by proceedings against such
Borrower or any other Loan Party at law or in equity or by proof thereof in
bankruptcy, reorganization, liquidation, receivership or similar proceedings,
or otherwise, and shall retain and apply to the payment of the Obligations due
to such Lender any amount in excess of its ratable portion of the payments
received by all of the Lenders with respect to such Borrower’s Obligations due
to all of the Lenders, such Lender will make such disposition and arrangements
with the other Lenders with respect to such excess, either by way of
distribution, pro tanto assignment of claims, subrogation or otherwise as shall
result in each Lender receiving in respect of the subject Obligations its
proportionate payment as contemplated by this Agreement; provided that if all
or any part of such excess payment is thereafter recovered from such Lender,
such disposition and arrangements shall be rescinded and the amount restored to
the extent of such recovery, but without interest.

 

12.4                           Right
to Freeze.  The Administrative Agent
and each of the Lenders shall also have the right, at its option, upon the
occurrence and during the continuance of any event which would entitle the Administrative
Agent and each of the Lenders to set off or debit as set forth in Section 12.2,
to freeze, block or segregate any such deposits, balances and other sums so
that a Borrower may not access, control or draw upon the same.

 

12.5                           Additional
Rights.  The rights of Administrative
Agent, the Lenders and each affiliate of Administrative Agent and each of the
Lenders under this Article 12 are in addition to, and not in limitation
of, other rights and remedies, including other rights of set off, which Administrative
Agent or any of the Lenders may have.

 

119

 

ARTICLE 13

 

THE AGENT AND THE LENDERS

 

13.1                           Rights,
Duties and Immunities of the Administrative Agent.

 

13.1.1          Appointment of Administrative
Agent.  Each Lender hereby irrevocably
designates and appoints Keybank, National Association as Administrative Agent
of such Lender to act as specified herein and in the other Loan Documents, and
each such Lender hereby irrevocably authorizes the Administrative Agent to take
such actions, exercise such powers and perform such duties as are expressly
delegated to or conferred upon the Administrative Agent by the terms of this
Loan Agreement and the other Loan Documents, together with such other powers as
are reasonably incidental thereto.  The Administrative
Agent agrees to act as such upon the express conditions contained in this Article 13.
The Administrative Agent shall not have any duties or responsibilities except
those expressly set forth herein or in the other Loan Documents, nor shall it
have any fiduciary relationship with any Lender, and no implied covenants,
responsibilities, duties, obligations or liabilities shall be read into this
Loan Agreement or otherwise exist against the Administrative Agent.  The provisions of this Article 13 are
solely for the benefit of the Administrative Agent and the Lenders, and the
Borrowers shall not have any rights as a third party beneficiary of any of the
provisions hereof.

 

13.1.2          Administration of
Loan by Administrative Agent.  The Administrative
Agent shall be responsible for administering the Loan on a day-to-day
basis.  In the exercise of such
administrative duties, the Administrative Agent shall use the same diligence
and standard of care that is customarily used by the Administrative Agent with
respect to similar loans held by the Administrative Agent solely for its own
account.

 

Each Lender delegates to the Administrative Agent the full right and
authority on its behalf to take the following specific actions in connection
with its administration of the Loan:

 

(i)                                     to
fund each Loan in accordance with the provisions of the Loan Documents, but
only to the extent of immediately available funds provided to the Administrative
Agent by the respective Lenders for such purpose;

 

(ii)                                  to receive all payments
of principal, interest, fees and other charges paid by, or on behalf of, each
Borrower and, except for fees to which the Administrative Agent is entitled
pursuant to the Loan Documents or otherwise, to distribute all such funds to
the respective Lenders as provided for hereunder;

 

(iii)                               to keep and maintain
complete and accurate files and records of all material matters pertaining to
each Loan, and make such files and records available for inspection and copying
by each Lender and its respective employees and agents during normal business
hours upon reasonable prior notice to the Administrative Agent; and

 

120

 

(iv)                              to
do or omit doing all such other actions as may be reasonably necessary or
incident to the implementation, administration and servicing of the Loans and
the rights and duties delegated hereinabove.

 

13.1.3          Delegation of Duties.  Without relieving the Administrative Agent of
its specific responsibilities under this Article 13, the Administrative
Agent may execute any of its duties under this Loan Agreement or any other Loan
Document by or through its agents or attorneys-in-fact, and shall be entitled
to the advice of counsel concerning all matters pertaining to its rights and
duties hereunder or under the Loan Documents. 
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.

 

13.1.4          Exculpatory
Provisions.  Neither the Administrative
Agent nor any of its officers, directors, employees, agents, attorneys-in-fact
or affiliates shall be liable for any action lawfully taken or omitted to be
taken by it or them under or in connection with this Loan Agreement or the
other Loan Documents, except for its or their gross negligence or willful
misconduct.  Neither the Administrative
Agent nor any of its officers, directors, employees, agents, attorneys-in-fact
or affiliates shall be responsible for or have any duty to ascertain, inquire
into, or verify (i) any recital, statement, representation or warranty
made by either Borrower or any of its officers or agents contained in this Loan
Agreement or the other Loan Documents or in any certificate or other document
delivered in connection therewith; (ii) the performance or observance of
any of the covenants or agreements contained in, or the conditions of, this
Loan Agreement or the other Loan Documents; (iii) the state or condition
of any properties of a Borrower or any other obligor hereunder constituting
Collateral for the Obligations of either Borrower hereunder, or any information
contained in the books or records of either Borrower; (iv) the validity,
enforceability, collectibility, effectiveness or genuineness of this Loan
Agreement or any other Loan Document or any other certificate, document or
instrument furnished in connection therewith; or (v) the validity,
priority or perfection of any lien securing or purporting to secure any
Obligations or the value or sufficiency of any of the Collateral.

 

13.1.5          Reliance by Administrative
Agent.  The Administrative Agent
shall be entitled to rely, and shall be fully protected in relying, upon any
notice, consent, certificate, affidavit, or other document or writing believed
by it to be genuine and correct and to have been signed, sent or made by the
proper person or persons, and upon the advice and statements of legal counsel
(including, without, limitation, counsel to each Borrower), independent
accountants and other experts selected by the Administrative Agent.  The Administrative Agent shall be fully
justified in failing or refusing to take any action under this Loan Agreement
or any other Loan Document unless it shall first receive such advice or
concurrence of the Required Lenders as it deems appropriate or it shall first
be indemnified to its satisfaction by the Lenders against any and all liability
and expense which may be incurred by it by reason of the taking or failing to
take any such action.  The Administrative
Agent shall in all cases be fully protected 

 

121

 

in acting, or in refraining
from acting, under this Loan Agreement and the other Loan Documents in accordance
with any written request of the Required Lenders, and each such request of the
Required Lenders, and any action taken or failure to act by the Administrative
Agent pursuant thereto, shall be binding upon all of the Lenders; provided,
however, that the Administrative Agent shall not be required in any event to
act, or to refrain from acting, in any manner which is contrary to the Loan
Documents or to applicable law.

 

13.1.6          Notice of Default.  The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Default or Event of
Default unless the Administrative Agent has actual knowledge of the same or has
received notice from a Lender or a Borrower referring to this Loan Agreement,
describing such Default or Event of Default and stating that such notice is a “notice
of default”.  In the event that the Administrative
Agent obtains such actual knowledge or receives such a notice, the Administrative
Agent shall give prompt notice thereof to each of the Lenders.  The Administrative Agent shall take such
action with respect to such Default or Event of Default as shall be reasonably
directed by the Required Lenders.  Unless
and until the Administrative Agent shall have received such direction, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to any such Default or Event of Default as it
shall deem advisable in the best interest of the Lenders.

 

13.1.7          Lenders’ Credit
Decisions.  Each Lender acknowledges
that it has, independently and without reliance upon the Administrative Agent
or any other Lender, and based on the financial statements prepared by each
Borrower and such other documents and information as it has deemed appropriate,
made its own credit analysis and investigation into the business, assets,
operations, property, and financial and other condition of each Borrower and
has made its own decision to enter into this Loan Agreement and the other Loan
Documents.  Each Lender also acknowledges
that it will, independently and without reliance upon the Administrative Agent
or any other Lender, and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in
determining whether or not conditions precedent to closing any Loan hereunder
have been satisfied and in taking or not taking any action under this Loan
Agreement and the other Loan Documents.

 

13.1.8          Administrative Agent’s
Reimbursement and Indemnification. 
The Lenders agree to reimburse and indemnify the Administrative Agent,
ratably in proportion to their respective Commitments, for (i) any amounts
not reimbursed by a Borrower for which the Administrative Agent is entitled to
reimbursement by a Borrower under this Loan Agreement or the other Loan
Documents, (ii) any other expenses incurred by the Administrative Agent on
behalf of the Lenders in connection with the preparation, execution, delivery,
administration, amendment, waiver and/or enforcement of this Loan Agreement and
the other Loan Documents, and (iii) any liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind and nature whatsoever which may imposed on, incurred by or 

 

122

 

asserted against the Administrative
Agent in any way relating to or arising out of this Loan Agreement or the other
Loan Documents or any other document delivered in connection therewith or any
transaction contemplated thereby, or the enforcement of any of the terms hereof
or thereof, provided that no Lender shall be liable for any of the foregoing to
the extent that they arise from the gross negligence or willful misconduct of
the Administrative Agent.  If any
indemnity furnished to the Administrative Agent for any purpose shall, in the
opinion of the Administrative Agent, be insufficient or become impaired, the Administrative
Agent may call for additional indemnity and cease, or not commence, to do the
action indemnified against until such additional indemnity is furnished.

 

13.1.9          Administrative Agent
in its Individual Capacity.  With
respect to its Commitment as a Lender, and the Loans made by it and any Note
issued to it, the Administrative Agent shall have the same rights and powers hereunder
and under any other Loan Document as any Lender and may exercise the same as
though it were not the Administrative Agent, and the term “Lender” or “Lenders”
shall, unless the context otherwise indicates, include the Administrative Agent
in its individual capacity.  The Administrative
Agent and its subsidiaries and affiliates may accept deposits from, lend money
to, and generally engage in any kind of commercial or investment banking,
trust, advisory or other business with each Borrower or any subsidiary or
affiliate of either Borrower as if it were not the Administrative Agent
hereunder.

 

13.1.10    Successor
Administrative Agent.  The Administrative
Agent may resign at any time by giving thirty (30) days’ prior written notice
to the Lenders and each Borrower.  The
Required Lenders, for cause, may remove Administrative Agent at any time by
giving thirty (30) days’ prior written notice to the Administrative Agent, the
Borrower and the other Lenders.  Upon any
such resignation or removal, the Required Lenders shall have the right to
appoint a successor Administrative Agent. 
If no successor Administrative Agent shall have been so appointed by the
Required Lenders and accepted such appointment within thirty (30) days after
the retiring Administrative Agent’s giving notice of resignation or the
Required Lenders’ giving notice of removal, as the case may be, then the
retiring Administrative Agent may appoint, on behalf of each Borrower and the
Lenders, a successor Administrative Agent. 
Each such successor Administrative Agent shall be a financial
institution which meets the requirements of an Eligible Assignee.  Upon the acceptance of any appointment as Administrative
Agent hereunder by a successor Administrative Agent, such successor Administrative
Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder and under
the other Loan Documents.  After any
retiring Administrative Agent’s resignation hereunder, the provisions of this Article 13
shall continue in effect for its benefit in respect of any actions taken or
omitted to be taken by it while it was acting as the Administrative Agent
hereunder.

 

123

 

13.1.11    Duties
in the Case of Enforcement. 
In case one or more Events of Default have occurred and shall be
continuing, and whether or not acceleration of any Obligations shall have occurred,
the Administrative Agent shall, at the request, or may, upon the consent, of
the Required Lenders, and provided that the Lenders have given to the Administrative
Agent such additional indemnities and assurances against expenses and
liabilities as the Administrative Agent may reasonably request, proceed to
enforce the provisions of this Loan Agreement and the other Loan Documents
respecting the foreclosure, the sale, or other disposition of all or any part
of the Collateral and the exercise of any other legal or equitable rights or
remedies as it may have hereunder or under any other Loan Document or otherwise
by virtue of applicable law, or to refrain from so acting if similarly
requested by the Required Lenders.  The Administrative
Agent shall be fully protected in so acting or refraining from acting upon the
instruction of the Required Lenders, and such instruction shall be binding upon
all the Lenders.  The Required Lenders
may direct the Administrative Agent in writing as to the method and the extent
of any such foreclosure, sale or other disposition or the exercise of any other
right or remedy, the Lenders hereby agreeing to indemnify and hold the Administrative
Agent harmless from all costs and liabilities incurred in respect of all
actions taken or omitted in accordance with such direction, provided that the Administrative
Agent need not comply with any such direction to the extent that the Administrative
Agent reasonably believes the Administrative Agent’s compliance with such
direction to be unlawful or commercially unreasonable in any applicable
jurisdiction.  The Administrative Agent
may, in its discretion but without obligation, in the absence of direction from
the Required Lenders, take such interim actions as it believes necessary to
preserve the rights of the Lenders hereunder and in and to any Collateral
securing any of the Obligations, including but not limited to petitioning a
court for injunctive relief, appointment of a receiver or preservation of the
proceeds of any Collateral.  Each of the
Lenders acknowledges and agrees that no individual Lender may separately
enforce or exercise any of the provisions of any of the Loan Documents,
including without limitation the Notes, other than through the Administrative
Agent.

 

13.2                           Respecting
Loans and Payments.

 

13.2.1          Procedures for Loans.  Administrative Agent shall give written
notice to each Lender of each request for a Loan, or conversion of an existing
Loan from a Adjusted Prime Rate Advance to an Adjusted LIBOR Rate Advance, by
facsimile transmission, hand delivery or overnight courier, not later than
11:00 a.m. (Boston time) (i) two (2) Business Days prior to any Adjusted
LIBOR Rate Advance or conversion to an Adjusted LIBOR Rate Advance, or (ii) one
(1) Business Day prior to any Adjusted Prime Rate Advance.  Each such notice shall be accompanied by a
written summary of the request for a Loan and shall specify (a) the date
of the requested Loan, (b) the aggregate amount of the requested Loan, (c) each
Lender’s pro rata share of the requested Loan, and (d) the applicable
interest rate selected by the subject Borrower with respect to such Loan, or
any portion thereof, together with the applicable Interest Period, if any,
selected, or deemed selected, by such Borrower. 
Each Lender shall, before 

 

124

 

11:00 a.m. (Boston time)
on the date set forth in any such request for a Loan, make available to Administrative
Agent, at an account to be designated by Administrative Agent at KEYBANK,
NATIONAL ASSOCIATION in Boston, Massachusetts, in same day funds, each Lender’s
ratable portion of the requested Loan. 
After Administrative Agent’s receipt of such funds and upon Administrative
Agent’s determination that the applicable conditions to making the requested
Loan have been fulfilled, Administrative Agent shall make such funds available
to such Borrower as provided for in this Loan Agreement.  Within a reasonable period of time following
the making of each Loan, but in no event later than ten (10) Business Days
following such Loan, Administrative Agent shall deliver to each Lender a copy
of such Borrower’s request for Loan. 
Promptly after receipt by Administrative Agent of written request from
any Lender, Administrative Agent shall deliver to the requesting Lender the
accompanying certifications and such other instruments, documents,
certifications and approvals delivered by or on behalf of such Borrower to Administrative
Agent in support of the requested Loan.

 

13.2.2          Nature of Obligations
of Lenders.  The obligations of the
Lenders hereunder are several and not joint. 
Failure of any Lender to fulfill that its obligations hereunder shall
not result in any other Lender becoming obligated to advance more than its
Commitment Percentage of the Loan, nor shall such failure release or diminish
the obligations of any other Lender to fund its Commitment Percentage provided
herein.  The full proceeds of each Loan
shall be funded on the Funding Date.

 

13.2.3          Payments to Administrative
Agent.  All payments of principal of
and interest on the Loans or the Note shall be made to the Administrative Agent
by the subject Borrower or any other obligor or guarantor for the account of
the Lenders in immediately available funds as provided in the Note and this
Loan Agreement. Except as otherwise expressly provided herein, including,
without limitation, as set forth under Section 2.3, the Administrative
Agent agrees promptly to distribute to each Lender, on the same Business Day
upon which each such payment is made, such Lender’s proportionate share of each
such payment in immediately available funds excluding Liquidation Proceeds
which shall be distributed in accordance with Section 13.2.4 below.  The Administrative Agent shall upon each
distribution promptly notify such Borrower of such distribution and each Lender
of the amounts distributed to it applicable to principal of, and interest on,
the proportionate share held by the applicable Lender.  Each payment to the Administrative Agent
under the first sentence of this Section shall constitute a payment by the
subject Borrower to each Lender in all cases in accordance with their
proportional share based on their respective Commitment Percentages, and any
such payment to the Administrative Agent shall not be considered outstanding
for any purpose after the date of such payment by such Borrower to the Administrative
Agent without regard to whether or when the Administrative Agent makes
distribution thereof as provided above. 
If any payment received by the Administrative Agent from a Borrower is
insufficient to pay both all accrued interest and all principal then due and
owing, the Administrative Agent shall first apply such payment to all 

 

125

 

outstanding interest until paid
in full and shall then apply the remainder of such payment to all principal
then due and owing, and shall distribute the payment to each Lender
accordingly.

 

13.2.4          Distribution of
Liquidation Proceeds.  Subject to the
terms and conditions hereof, the Administrative Agent shall distribute all
Liquidation Proceeds in the order and manner set forth below:

 

First:                                                                     To
the Administrative Agent, towards any fees and any expenses for which the Administrative
Agent is entitled to reimbursement under this Agreement or the other Loan
Documents not theretofore paid to the Administrative Agent.

 

Second:                                                     To
all applicable Lenders in accordance with their proportional share based upon
their respective Commitment Percentages until all Lenders have been reimbursed
for all expenses which such Lenders have previously paid to the Administrative
Agent and not theretofore paid to such Lenders.

 

Third:                                                                On
a pari passu basis, (a) to KEYBANK, NATIONAL ASSOCIATION (or any successor
thereto) with respect to the Obligations specifically arising on account of any
Interest Rate  Agreement, if issued by
KEYBANK, NATIONAL ASSOCIATION and (b) to all Lenders in accordance with
their proportional share based upon their respective Commitment Percentages
until all Lenders have been paid in full all principal and interest due to such
Lenders under the Loans in order of priority as between the Loans as determined
by the Administrative Agent, with each Lender applying such proceeds for
purposes of this Agreement against the outstanding principal balance and accrued
and unpaid interest due to such Lender under the Loans in such fashion and
priority as the Administrative Agent may reasonably direct.

 

Fourth:                                                         To
all applicable Lenders in accordance with their proportional share based upon
their respective Commitment Percentages until all Lenders have been paid in
full all other amounts due to such Lenders under the Loans including, without
limitation, any costs and expenses incurred directly by such Lenders to the
extent such costs and expenses are reimbursable to such Lenders by the Borrower
under the Loan Documents.

 

Fifth:                                                                    To
a Borrower or such third parties as may be entitled to claim Liquidation
Proceeds.

 

13.2.5          Adjustments.  If, after Administrative Agent has paid each
Lender’s proportionate share of any payment received or applied by Administrative
Agent in respect of either Loan and other Obligations, that payment is
rescinded or must otherwise be returned or paid over by Administrative Agent,
whether pursuant to any bankruptcy or insolvency law, sharing of payments
clause of any loan agreement or otherwise, such Lender shall, at Administrative
Agent’s request, promptly return its proportionate share 

 

126

 

of
such payment or application to Administrative Agent, together with the Lender’s
proportionate share of any interest or other amount required to be paid by Administrative
Agent with respect to such payment or application.

 

13.2.6          Setoff.  If any Lender (including the Administrative
Agent), acting in its individual capacity, shall exercise any right of setoff
against a deposit balance or other account of either Borrower held by such
Lender on account of the obligations of such Borrower under this Loan
Agreement, such Lender shall remit to the Administrative Agent all such sums
received pursuant to the exercise of such right of setoff, and the Administrative
Agent shall apply all such sums for the benefit of all of the Lenders hereunder
in accordance with the terms of this Loan Agreement.

 

13.2.7          Distribution by Administrative
Agent.  If in the opinion of the Administrative
Agent distribution of any amount received by it in such capacity hereunder or
under either Note or under any of the other Loan Documents might involve any
liability, it may refrain from making distribution until its right to make
distribution shall have been adjudicated by a court of competent jurisdiction
or has been resolved by the mutual consent of all Lenders.  In addition, the Administrative Agent may
request full and complete indemnity, in form and substance satisfactory to it,
prior to making any such distribution. 
If a court of competent jurisdiction shall adjudge that any amount
received and distributed by the Administrative Agent is to be repaid, each
person to whom any such distribution shall have been made shall either repay to
the Administrative Agent its proportionate share of the amount so adjudged to
be repaid or shall pay over to the same in such manner and to such Persons as
shall be determined by such court.

 

13.2.8          Delinquent Lender.  If for any reason any Lender shall fail or
refuse to abide by its obligations under this Loan Agreement, including without
limitation its obligation to make available to Administrative Agent its pro
rata share of any Loans, expenses or setoff (a “Delinquent Lender”) and
such failure is not cured within ten (10) days of receipt from the Administrative
Agent of written notice thereof, then, in addition to the rights and remedies
that may be available to Administrative Agent, other Lenders, each Borrower or
any other party at law or in equity, and not at limitation thereof, (i) such
Delinquent Lender’s right to participate in the administration of, or
decision-making rights related to, the Loans, this Loan Agreement or the other
Loan Documents shall be suspended during the pendency of such failure or
refusal, and (ii) a Delinquent Lender shall be deemed to have assigned any
and all payments due to it from each Borrower, whether on account of
outstanding Loans, interest, fees or otherwise, to the remaining non-delinquent
Lenders for application to, and reduction of, their proportionate shares of all
outstanding Loans until, as a result of application of such assigned payments
the Lenders’ respective pro  rata shares of all outstanding Loans
shall have returned to those in effect immediately prior to such delinquency
and without giving effect to the nonpayment causing such delinquency.  The Delinquent Lender’s decision-making and
participation rights and rights to payments as set forth in clauses (i) and
(ii) hereinabove shall be 

 

127

 

restored
only upon the payment by the Delinquent Lender of its pro  rata
share of any Loans or expenses as to which it is delinquent, together with
interest thereon at the Default Rate from the date when originally due until
the date upon which any such amounts are actually paid.

 

The non-delinquent Lenders shall also have the right, but not the
obligation, in their respective, sole and absolute discretion, to acquire for
no cash consideration (pro rata, based on the respective
Commitments of those Lenders electing to exercise such right) the Delinquent
Lender’s Commitment to fund future Loans (the “Future Commitment”).  Upon any such purchase of the pro  rata
share of any Delinquent Lender’s Future Commitment, the Delinquent Lender’s
share in future Loans and its rights under the Loan Documents with respect
thereto shall terminate on the date of purchase, and the Delinquent Lender
shall promptly execute all documents reasonably requested to surrender and
transfer such interest, including, if so requested, an Assignment and
Acceptance.  Each Delinquent Lender shall
indemnify Administrative Agent and each non-delinquent Lender from and against
any and all loss, damage or expenses, including but not limited to reasonable
attorneys’ fees and funds advanced by Administrative Agent or by any
non-delinquent Lender, on account of a Delinquent Lender’s failure to timely
fund its pro  rata share of a Loan or to otherwise perform its
obligations under the Loan Documents.

 

13.2.9          Holders.  The Administrative Agent may deem and treat
the Lender designated in the Register  as the proportionate owner of such
interest in the Note for all purposes hereof unless and until a written notice
of the assignment, transfer or endorsement thereof, as the case may be, shall
have been filed with the Administrative Agent. 
Any request, authority or consent of any Person who, at the time of
making such request or giving such authority or consent, is the holder of any
designated interest in the Note shall be conclusive and binding on any
subsequent holder, transferee or endorsee, as the case may be, of such interest
in the Notes or of any Note or Notes issued in exchange therefor.

 

13.3                           Assignment
and Participation.

 

13.3.1          Conditions to
Assignment by Lenders.  Except as
provided herein, each Lender may assign to one or more Eligible Assignees all
or a portion of its interests, rights and obligations under this Loan Agreement
(including all or a portion of its Commitment Percentage and Commitment and the
same portion of each of the Loans at the time owing to it and the portion of
the Notes held by it), upon satisfaction of the following conditions: (a) each
of the Administrative Agent and each Borrower shall have given its prior
written consent to such assignment, which consent shall not be unreasonably
withheld, delayed or conditioned by either the Administrative Agent or the
Borrowers (provided that, in the case of the Borrowers, such consent
shall not be required if a Default or Event of Default shall have occurred and
be continuing and provided, further, such consent shall not be required
from either the Administrative Agent or the Borrower in connection with any
assignment as to which (i) the assignee is an existing Lender (other than
a Delinquent Lender) or (ii) an Affiliate or a Related Fund of the
assigning Lender); (b) each such assignment shall be of a constant, and
not a varying, percentage of all the 

 

128

 

assigning Lender’s rights and
obligations under this Loan Agreement, (c) each assignment shall be in an
amount that is at least $1,000,000.00 and is a whole multiple of $1,000,000.00
(provided, such minimum amount shall not apply (i) if the assigning
Lender is assigning its entire remaining interest in the Loans or (ii) if
the assignee is one of a group of Lender Affiliates of a Qualified Assignee and
(1) the said group of Lender Affiliates satisfies such requirement in the
aggregate, and (2) the said group of Lender Affiliates has advised the
Administrative in writing of  a single
designee who shall be entitled to vote on behalf of said group, as a single
vote, and receive all notices, requests, and information on behalf of said
group, such that the Administrative Agent shall deal solely with such designee
in connection with the Loans held by said group), (d) each Lender which is
a Lender at the time of such assignment shall retain, free of any such
assignment, an amount of its Commitment of not less than $1,000,000.00 (provided,
such minimum amount shall not apply if the assigning Lender is assigning its
entire remaining interest in the Loans), (e) each assignment shall consist
of an assignment from the assigning Lender’s of a pro rata interest in each of
the NMLP Loan and the T-Two Loan, and (f) the parties to such assignment
shall execute and deliver to the Administrative Agent, for recording in the
Register (as hereinafter defined), an Assignment and Acceptance, substantially
in the form of Exhibit H hereto (an “Assignment and Acceptance”).  Upon such execution, delivery, acceptance and
recording, from and after the effective date specified in each Assignment and
Acceptance, which effective date shall be at least five (5) Business Days
after the execution thereof (or such shorter period of time as may be agreed to
by the Administrative Agent), (x) the assignee thereunder shall be a party
hereto and, to the extent provided in such Assignment and Acceptance, have the
rights and obligations of a Lender hereunder, and (y) the assigning Lender
shall, to the extent provided in such assignment and upon payment to the Administrative
Agent of the registration fee referred to in Section 13.3.3, be released
from its obligations under this Loan Agreement. 
No Lender may separately assign an interest in a Loan; each assignment
must be of a pro rata interest in each Loan.

 

13.3.2          Certain
Representations and Warranties, Limitations, Covenants.  By executing and delivering an Assignment and
Acceptance, the parties to the assignment thereunder confirm to and agree with
each other and the other parties hereto as follows:

 

(a)                                  other
than the representation and warranty that it is the legal and beneficial owner
of the interest being assigned thereby free and clear of any adverse claim,
unless specifically agreed in writing otherwise by the assigning Lender, the
assigning Lender makes no representation or warranty, express or implied, and
assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with this Loan Agreement or the
execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Loan Agreement, the other Loan Documents or any other instrument
or document furnished pursuant hereto or the attachment, perfection or priority
of any security interest or mortgage;

 

129

 

(b)                                 unless
specifically agreed in writing otherwise by the assigning Lender, the assigning
Lender makes no representation or warranty and assumes no responsibility with
respect to the financial condition of either Borrower and its affiliates,
related entities or subsidiaries or any other person primarily or secondarily
liable in respect of any of the Obligations, or the performance or observance by
either Borrower or any other Person primarily or secondarily liable in respect
of any of the Obligations of any of their obligations under this Loan Agreement
or any of the other Loan Documents or any other instrument or document
furnished pursuant hereto or thereto;

 

(c)                                  such
assignee confirms that it has received a copy of this Loan Agreement, together
with copies of the most recent financial statements provided by each Borrower
as required by the terms of this Loan Agreement, together with such other documents
and information as it has deemed appropriate to make its own credit analysis
and decision to enter into such Assignment and Acceptance;

 

(d)                                 unless
specifically agreed in writing otherwise by the assigning Lender, such assignee
will, independently and without reliance upon the assigning Lender, the Administrative
Agent or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under this Loan Agreement;

 

(e)                                  such assignee represents and warrants that it is an Eligible
Assignee;

 

(f)                                    such
assignee appoints and authorizes the Administrative Agent to take such action
as agent on its behalf and to exercise such powers under this Loan Agreement
and the other Loan Documents as are delegated to the Administrative Agent by
the terms hereof or thereof, together with such powers as are reasonably
incidental thereto;

 

(g)                                 such
assignee agrees that it will perform in accordance with their terms all of the
obligations that by the terms of this Loan Agreement are required to be
performed by it as a Lender; and

 

(h)                                 such assignee represents and warrants that it is legally
authorized to enter into such Assignment and Acceptance.

 

13.3.3          Register.  The Administrative Agent shall maintain a
copy of each Assignment and Acceptance delivered to it and a register or
similar list (the “Register”) for the recordation of the names and addresses of
the Lenders and the Commitment Percentage of, and principal amount of the Loans
owing to the Lenders from time to time. 
The entries in the Register shall be conclusive, in the absence of
manifest error, and each Borrower, the Administrative Agent and the Lenders may
treat each person whose name is recorded in the Register as a Lender hereunder
for all purposes of this Loan Agreement. 
The Register shall be available for inspection by each Borrower and the
Lenders at any reasonable time and from time to time upon reasonable prior notice.  Upon each such 

 

130

 

recordation, the assigning
Lender agrees to pay to the Administrative Agent a registration fee in the sum
of $3,500.00, except there shall be no such registration fee if the assignment
is to an Affiliate or Related Fund of the assigning Lender and only one such
fee shall be payable in connection with simultaneous assignments by two or more
Related Funds.

 

13.3.4          Register Notation.  Upon its receipt of an Assignment and
Acceptance executed by the parties to such assignment, the Administrative Agent
shall (a) record the information contained therein in the Register, and (b) give
prompt notice thereof to each Borrower and the Lenders (other than the
assigning Lender).

 

13.3.5          Participations.  Each Lender may sell participations to one or
more banks or other financial institutions in all or a portion of such Lender’s
rights and obligations under this Loan Agreement and the other Loan Documents;
provided that (a) each such participation shall be in a minimum amount of
$1,000,000.00 (provided, such minimum amount shall not apply to participations
with Affiliates or Related Funds of the assigning Lender), (b) each
participant shall meet the requirements of an Eligible Assignee, (c) any
such sale or participation shall not affect the rights and duties of the
selling Lender hereunder to each Borrower, (d) each participation shall
consist of a pro rata interest in each of the NMLP Loan and the T-Two Loan, and
(e) the only rights granted to the participant pursuant to such participation
arrangements with respect to waivers, amendments or modifications of the Loan
Documents shall be the rights to approve waivers, amendments or modifications
that would reduce the principal of or the interest rate on any Loans, extend
the term or increase the amount of the Commitment of such Lender as it relates
to such participant, reduce the amount of any commitment fees to which such
participant is entitled or extend any regularly scheduled payment date for
principal or interest.  No Lender may
separately participate an interest in a Loan; each
participation must be of a pro rata interest in each Loan.

 

13.3.6          Disclosure.  Each Borrower agrees that in addition to
disclosures made in accordance with standard and customary banking practices
any Lender may disclose information obtained by such Lender pursuant to this
Loan Agreement to assignees, pledgees, or participants and potential assignees,
pledgees, or participants hereunder (other than a competitor of a Borrower);
provided that such assignees, pledgees, or participants or potential assignees
or participants shall agree (other than any Lender’s affiliate or any
regulatory body or legal authority having jurisdiction over such Lender) (a) to
treat in confidence such information unless such information otherwise becomes
public knowledge, (b) not to disclose such information to a third party,
except as required by law or legal process and (c) not to make use of such
information for purposes of transactions unrelated to such contemplated
assignment or participation.

 

13.3.7          Miscellaneous
Assignment Provisions.  Any assigning
Lender shall retain its rights to be indemnified pursuant to Sections 2.7.1, 2.7.2,
2.7.3, 7.1.21 and 7.2.17 with respect to any claims or actions arising prior to
the date of such assignment.  If any
assignee Lender is not incorporated under the laws of 

 

131

 

the United States of America or
any state thereof, it shall, prior to the date on which any interest or fees
are payable hereunder or under any of the other Loan Documents for its account,
deliver to each Borrower and the Administrative Agent, Certificates of
Exemption, as provided in Section 2.7.3. 
Anything contained in this Section 13.3.7 to the contrary
notwithstanding, any Lender may at any time pledge all or any portion of its
interest and rights under this Loan Agreement (including all or any portion of
its Notes)  (i) to any of the twelve
Federal Reserve Banks organized under §4 of the Federal Reserve Act, 12 U.S.C.
§341, (ii) in case of any Lender that is a fund, to any holders of
obligations owed or securities issued by such Lender or to any trustee for or
other representative of such holders, or (iii) as approved by the Administrative
Agent.  No such pledge or the enforcement
thereof shall release the pledgor Lender from its obligations hereunder or
under any of the other Loan Documents.

 

13.4                           Administrative
Matters.

 

13.4.1          Amendment, Waiver,
Consent, Etc.  Except as otherwise
provided herein or as to any term or provision hereof which provides for the
consent or approval of the Administrative Agent, no term or provision of this
Loan Agreement or any other Loan Document may be changed, waived, discharged or
terminated, nor may any consent required or permitted by this Loan Agreement or
any other Loan Document be given, unless such change, waiver, discharge,
termination or consent receives the written approval of the Required Lenders.

 

Notwithstanding the foregoing, the unanimous written approval of all
the Lenders (other than a Delinquent Lender) shall be required with respect to
any proposed amendment, waiver, discharge, termination, or consent which:

 

(i)                                     has the effect of (a) extending
the final scheduled maturity or the date of any amortization payment of any
Loan or Note or reducing the amount of any such amortization payment, (b) reducing
the rate or extending the time of payment of interest or fees thereon, (c) increasing
or reducing the principal amount thereof, or (d) otherwise postponing or
forgiving any indebtedness thereunder,

 

(ii)                                  releases
or discharges any material portion of any Collateral, or subordinates the Administrative
Agent’s lien thereon,  other than in
accordance with the express provisions of the Loan Documents,

 

(iii)                               amends,
modifies or waives any provisions of this Section 13.4,

 

(iv)                              amends,
modifies or waives any of the Financial Covenants,

 

(v)                                 reduces
the percentage specified in the definition of Required Lenders,

 

(vi)                              except
as otherwise provided in the Loan Agreement, changes the amount of any Lender’s
Commitment or Commitment Percentage,

 

132

 

(vii)                           releases
or waives any guaranty of the Obligations or indemnifications provided in the
Loan Documents, or subordinates the Administrative Agent’s interest therein,

 

(viii)                        modifies
any prepayment events (mandatory or optional) or the application of proceeds
from such events,

 

(ix)                                permits
any Borrower to assign or delegate any of its rights or obligations under the
Loan Documents;

 

(x)                                   permits
a LIBOR Rate Interest Period with a duration in excess of six months;

 

(xi)                                amends,
modifies or waives in any material and adverse manner the intended
comprehensive cash management of NMLP and T-Two and their respective
Subsidiaries, or

 

(xii)                             modifies
the provisions of Section 13.2.4 as to the disposition of Liquidation
Proceeds,

 

and  provided,
further, that without the consent of the Administrative Agent, no such action
shall amend, modify or waive any provision of this Article or any other
provision of any Loan Document which relates to the rights or obligations of
the Administrative Agent.

 

13.4.2                  Deemed
Consent or Approval.  With respect to
any requested amendment, waiver, consent or other action which requires the
approval of the Required Lenders or all of the Lenders, as the case may be, in
accordance with the terms of this Loan Agreement, or if the Administrative
Agent is required hereunder to seek, or desires to seek, the approval of the
Required Lenders or all of the Lenders, as the case may be, prior to undertaking
a particular action or course of conduct, the Administrative Agent in each such
case shall provide each Lender with written notice of any such request for
amendment, waiver or consent or any other requested or proposed action or
course of conduct, accompanied by such detailed background information and
explanations as may be reasonably necessary to determine whether to approve or
disapprove such amendment, waiver, consent or other action or course of
conduct.  The Administrative Agent may
(but shall not be required to) include in any such notice, printed in capital
letters or boldface type, a legend substantially to the following effect:

 

“THIS
COMMUNICATION REQUIRES IMMEDIATE RESPONSE. 
FAILURE TO RESPOND WITHIN TEN (10) CALENDAR DAYS FROM THE RECEIPT OF
THIS COMMUNICATION SHALL CONSTITUTE A DEEMED APPROVAL BY THE ADDRESSEE OF THE
ACTION REQUESTED BY THE SUBJECT BORROWER OR THE COURSE OF CONDUCT PROPOSED BY
THE AGENT AND RECITED ABOVE,”

 

and if the
foregoing legend is included by the Administrative Agent in its communication,
a Lender shall be deemed to have approved or consented to such action or course
of conduct for all purposes hereunder if such Lender fails to object to such
action or course of conduct by written 

 

133

 

notice to the
Administrative Agent within ten (10) calendar days of such Lender’s
receipt of such notice.

 

13.5                           Syndication
Agent; Deposit Account Co-Agent; Documentation Agent.  Notwithstanding the provisions of this
Agreement or of the other Loan Documents, the Syndication Agent and the
Documentation Agent shall have no powers, rights, duties, responsibilities or
liabilities with respect to this Agreement and the other Loan Documents, and
the Deposit Account Co-Agent will have only those rights and duties
specifically provided for herein.  Except
as otherwise specifically provided for herein or in any other Loan Document, (a) the
Deposit Account Co-Agent will not take any action under any Loan Document,
without the prior direction of the Administrative Agent and (b) the Deposit
Account Co-Agent will take any action under the Loan Documents as directed by
the Administrative Agent;  provided,
however, that the Deposit Account Co-Agent shall not be required in any
event to act, or to refrain from acting, in any manner which is contrary to the
Loan Documents or to applicable law.  To
the extent requested by the Administrative Agent, the Syndication Agent has
coordinated, or will coordinate, the initial syndication of the Loan and the
assignment of interests in the Loan.

 

ARTICLE 14

CASUALTY AND TAKING

 

14.1                           Casualty
or Taking; Obligation To Repair.  In the event of the occurrence of a loss,
casualty or taking as to any Individual Property, Borrower shall give prompt
written notice thereof to the Administrative Agent and as to any Individual
Property owned by NMLP Partnership, unless the Mandatory Principal Repayment
provided for in Section 2.3.8(b)(vii) has been paid, shall proceed
with reasonable diligence, in full compliance with all Legal Requirements and
the other requirements of the Loan Documents, to repair, restore, rebuild or
replace the affected Mortgaged Property (each, the “Repair Work”).

 

14.2                           Adjustment
of Claims.  All insurance claims or
condemnation or similar awards shall be adjusted or settled by Borrower, at
Borrower’s sole cost and expense, but subject to Administrative Agent’s prior
written approval for any Mortgaged Property, which approval shall not be
unreasonably withheld; provided that (i) the Administrative Agent shall have
the right to participate in any adjustment or settlement for any Mortgaged
Property with respect to which the Net Proceeds in the aggregate are equal to
or greater than One Million Dollars ($1,000,000.00) and (ii) if any Event
of Default exists under any of the Loan Documents, Administrative Agent shall
have the right to adjust, settle, and compromise such claims without the
approval of Borrower.

 

14.3                           Payment
and Application of Insurance Proceeds and Condemnation Awards. 

 

14.3.1          As to any Individual Property
which is not subject to any Mortgage Debt, all Net Proceeds shall be paid to the
Administrative Agent and, at the Administrative Agent’s option, except as
otherwise provided for herein, shall be applied to Borrower’s Obligations as
provided in Section 2.3.8 or released, in whole or in part, to pay for the
actual cost of repair, restoration, rebuilding or replacement (collectively, “Cost
To Repair”).  If any Net Proceeds are
received directly by any Loan Party, such Loan Party shall hold such Net 

 

134

 

Proceeds in trust for the Administrative
Agent and shall promptly deliver such Net Proceeds in kind to the
Administrative Agent.

 

14.3.2          Notwithstanding the
terms and provisions hereof, with respect to any Mortgaged Property, if the Net
Proceeds do not exceed One Million Dollars ($1,000,000.00), provided no Default
or Event of Default is then in existence, the Administrative Agent shall
release the Net Proceeds to pay for the actual Cost to Repair and the applicable
Loan Party shall commence and diligently prosecute to completion, the Repair
Work relative to the subject Mortgaged Property, with any excess being retained
by the applicable Loan Party.

 

14.3.3          Notwithstanding the
terms and provisions hereof, with respect to any Mortgaged Property, if the Net
Proceeds are equal to or greater than One Million dollars ($1,000,000.00), the
Administrative Agent shall release so much of the Net Proceeds as may be
required to pay for the actual Cost To Repair in accordance the limitations and
procedures  set
forth in  Section 14.4, if the
following conditions are satisfied in a manner reasonably acceptable to the
Administrative Agent:

 

(a)                                  no
Default or Event of Default shall have occurred and be continuing under the Loan
Documents;

 

(b)                                 in the Administrative Agent’s good faith judgment such Net
Proceeds together with any additional funds as may be deposited with and
pledged to the Administrative Agent, on behalf of the Lenders, are sufficient
to pay for the Cost To Repair.  In order
to make this determination, the Administrative Agent shall be furnished by the
Borrower with an estimate of the Cost to Repair accompanied by an independent
architect’s or engineer’s certification as to such Cost to Repair and
appropriate plans and specifications for the Repair Work;

 

(c)                                  in
the Administrative Agent’s good faith judgment, the Repair Work can reasonably
be completed on or before the time required under applicable Legal
Requirements; and

 

(d)                                 the Lease with respect to the Mortgaged Property shall
remain in full force and effect and shall require the repair and reconstruction
of the Mortgaged Property.

 

14.4                           Conditions
To Release of Insurance Proceeds.  If the Administrative Agent elects or is
required to release insurance proceeds, the Administrative Agent may impose
reasonable conditions on such release which shall include, but not be limited
to, the following:

 

14.4.1          Prior written approval
by the Administrative Agent, which approval shall not be unreasonably withheld
or delayed of plans, specifications, cost estimates, contracts and bonds for
the Repair Work;

 

135

 

14.4.2          Waivers of lien,
architect’s and/or engineer’s certificates, and other evidence of costs,
payments and completion as the Administrative Agent may reasonably require;

 

14.4.3          The funds shall be
released upon final completion of the Repair Work, unless Borrower requests
earlier funding, in which event partial monthly disbursements equal to 90% of
the costs of the work completed prior to the certification by  an independent architect or engineer retained
by the Administrative Agent, that the Repair Work is completed, and then upon
final completion of the Repair Work as certified by such independent architect
or engineer, and the receipt by the Administrative Agent of satisfactory
evidence of payment and release of all liens, the balance of the funds shall be
released;

 

14.4.4          Determination by the Administrative
Agent that the undisbursed balance of such Net Proceeds on deposit with the Administrative
Agent, together with additional funds deposited for the purpose, shall be at
least sufficient to pay for the remaining Cost To Repair, free and clear of all
Liens and claims for Lien;

 

14.4.5          All work to comply with
the Legal Requirements applicable to the construction of the Improvements; and

 

14.4.6          The absence of any
Default under any Loan Documents.

 

14.5                           Consultant.  The Administrative Agent shall have the right
to hire, at the cost and expense of the Borrower, consultants and advisors (each,
a “Lender’s Consultant”) to assist the Administrative Agent in the
determination of the satisfaction of the conditions provided for herein for the
release of the Net Proceeds, to pay the Costs to Repair and to periodically
inspect the status of the construction of any Repair Work.

 

14.6                           Excess.  In the event that the Administrative Agent
makes any Net Proceeds available to any Loan Party for the payment of Costs to
Repair as provided for herein, upon the completion of the Repair Work as
certified by the applicable Lender’s Consultant and if there is no Lender’s
Consultant, an independent architect or engineer retained by the Borrower, and
receipt by Administrative Agent of satisfactory evidence of payment and release
of all liens, any excess Net Proceeds still held by the Administrative Agent
shall be remitted by the Administrative Agent to the Borrower provided that no
Event of Default shall have occurred and be continuing for application to the
Borrower’s obligations under Section 2.3.8.

 

14.7                           Leases.  The terms and provisions of this Article 14
shall be subject and subordinate to the terms and provisions of any Lease or
Mortgage Debt which remains in full force and effect under which the repair or
reconstruction of the Mortgaged Property is required.

 

136

 

ARTICLE 15

GENERAL PROVISIONS.

 

15.1                           Notices.  Any notice or other communication in
connection with this Loan Agreement, the Notes, the Security Documents, or any
of the other Loan Documents, shall be in writing, and (i) deposited in the
United States Mail, postage prepaid, by registered or certified mail, or (ii) hand
delivered by any commercially recognized courier service or overnight delivery
service such as Federal Express, or (iii) sent by facsimile transmission
if a FAX Number is designated below addressed:

 

If to NMLP:

 

Newkirk Master Limited Partnership

Two Jericho Plaza, Wing A, Suite 111

Jericho, New York 11753

Attention: Peter Braverman, Executive Vice President

FAX Number: (516) 433-2777

 

And

 

Newkirk Master Limited Partnership

7 Bulfinch Place, Suite 500

Boston, Massachusetts 02114

Attention: Carolyn Tiffany, Chief Operating Officer

FAX Number: (617) 570-4710

 

with copies by regular mail or such hand
delivery or facsimile transmission to:

 

Post, Heymann, & Koffler, LLP

Two Jericho Plaza, Wing A, Suite 111

Jericho, New York 11753

Attention: David J. Heymann, Esquire

FAX Number:                      (516)
433-2777

 

And

 

Sullivan & Cromwell (until the consummation of the IPO)

125 Broad Street

New York, New York 10004

Attention: Arthur Adler, Esquire

FAX Number:                      (212)
558-1600

 

137

 

If to T-Two:

 

T-Two Partners, L.P.

Two Jericho Plaza, Wing A, Suite 111

Jericho, New York 11753

Attention: Peter Braverman, Executive Vice President

FAX Number: (516) 433-2777

 

And

 

T-Two Partners, L.P.

7 Bulfinch Place, Suite 500

Boston, Massachusetts 02114

Attention: Carolyn Tiffany, Senior Vice President

FAX Number: (617) 570-4710

 

with copies by regular mail or such hand delivery
or facsimile transmission to:

 

Post, Heymann & Koffler, LLP

Two Jericho Plaza, Wing A, Suite 111

Jericho, New York 11753

Attention: David J. Heymann, Esquire

FAX Number:  (516) 433-2777

 

And (until the consummation of the IPO)

 

Sullivan & Cromwell

125 Broad Street

New York, New York 10004

Attention: Arthur Adler, Esquire

FAX Number:                      (212)
558-1600

 

If to the
Borrower to each of NMLP and T-Two in the manner provided for above.

 

If to Administrative
Agent:

 

KeyBank National Association

101 Federal Street

Boston, Massachusetts 02110

Attention: Jeffry M. Morrison, Managing Director

FAX Number: (617) 204.5769

 

with copies by regular mail or such hand
delivery or facsimile transmission to:

 

Riemer & Braunstein LLP

Three Center Plaza

Boston, Massachusetts 02108

Attention: Steven J. Weinstein, Esquire

FAX Number: (617) 880-3456

 

138

 

If to KEYBANK
NATIONAL ASSOCIATION:

 

KeyBank, National Association

101 Federal Street

Boston, Massachusetts 02110

Attention: Jeffry M. Morrison, Managing Director

FAX Number: (617) 204.5769

 

with copies by regular mail or such hand
delivery or facsimile transmission to:

 

Riemer & Braunstein LLP

Three Center Plaza

Boston, Massachusetts 02108

Attention: Steven J. Weinstein, Esquire

FAX Number: (617) 880-3456

 

If to the co-Lender, to the addresses set forth on the signature page or
to such addresses as set forth in the Assignment and Acceptance.

 

Any such addressee may change its address for such notices to such
other address in the United States as such addressee shall have specified by
written notice given as set forth above. All periods of notice shall be
measured from the deemed date of delivery.

 

A notice shall be deemed to have been given, delivered and received for
the purposes of all Loan Documents upon the earliest of: (i) if sent by
such certified or registered mail, on the third Business Day following the date
of postmark, or (ii) if hand delivered at the specified address by such
courier or overnight delivery service, when so delivered or tendered for
delivery during customary business hours on a Business Day, or (iii) if so
mailed, on the date of actual receipt as evidenced by the return receipt, or (iv) if
so delivered, upon actual receipt, or (v) if facsimile transmission is a
permitted means of giving notice, upon receipt as evidenced by confirmation.

 

15.2                           Limitations
on Assignment.  Neither Borrower may
assign this Agreement or the monies due thereunder without the prior written
consent of all of the Lenders in each instance, but in such event Lenders may
nevertheless at their option make the Loan under this Agreement to such
Borrower or to those who succeed to the title of such Borrower and all sums so
advanced by Lenders shall be deemed a Loan Advance under this Agreement and not
to be modifications thereof and shall be secured by all of the Collateral for
the subject’s Borrower’s Obligations given at any time in connection herewith.

 

15.3                           Further
Assurances.  Each Borrower shall upon
request from Administrative Agent from time to time execute, seal, acknowledge
and deliver such further instruments or documents which Administrative Agent
may reasonably require to better perfect and confirm its rights and remedies
hereunder, under the Notes, under the Security Documents and under each of the
other Loan Documents.

 

139

 

15.4                           Payments.

 

15.4.1          NMLP Payments.  All payments under the NMLP Note shall be
applied first to the payment of all fees, expenses and other amounts due to the
Administrative Agent (excluding principal and interest) and, to the extent
reimbursement is provided for herein, the Lenders, then to accrued interest,
and the balance on account of outstanding principal under the NMLP Note;
provided, however, that after an Event of Default, Liquidation Proceeds will be
applied to the Obligations of each Borrower to Administrative Agent and the
Lenders as otherwise provided for herein.

 

15.4.2          T-Two Payments.  All payments under the T-Two Note shall be
applied first to the payment of all fees, expenses and other amounts due to the
Administrative Agent (excluding principal and interest) and, to the extent
reimbursement is provided for herein, the Lenders, then to accrued interest,
and the balance on account of outstanding principal under the T-Two Note;
provided, however, that after an Event of Default, Liquidation Proceeds will be
applied to the Obligations of each Borrower to Administrative Agent and the
Lenders as otherwise provided for herein.

 

15.5                           Parties
Bound.  The provisions of this
Agreement and of each of the other Loan Documents shall be binding upon and
inure to the benefit of each Borrower, the Administrative Agent and each of the
Lenders and their respective successors and assigns, except as otherwise
prohibited by this Agreement or any of the other Loan Documents.

 

This Agreement is a contract by and among each Borrower, the Administrative
Agent and each of the Lenders for their mutual benefit, and no third person
shall have any right, claim or interest against either Administrative Agent,
any of the Lenders or either Borrower by virtue of any provision hereof.

 

15.6                           Governing
Law; Consent to Jurisdiction; Mutual Waiver of Jury Trial.

 

15.6.1          Substantial
Relationship.  It is understood and
agreed that all of the Loan Documents were negotiated, executed and delivered
in The Commonwealth of Massachusetts, which Commonwealth the parties agree has
a substantial relationship to the parties and to the underlying transactions
embodied by the Loan Documents.

 

15.6.2          Place of Delivery.  Each Borrower agrees to furnish to Administrative
Agent at the Administrative Agent’s office in Boston, Massachusetts all further
instruments, certifications and documents to be furnished hereunder.

 

15.6.3          Governing Law.  This Agreement and each of the other Loan
Documents shall in all respects be governed, construed, applied and enforced in
accordance with the internal laws of The Commonwealth of Massachusetts without
regard to principles of conflicts of law.

 

15.6.4          Consent to
Jurisdiction.  Each Borrower hereby
consents to personal jurisdiction in any state or Federal court located within
The Commonwealth of Massachusetts.

 

140

 

15.6.5          JURY TRIAL WAIVER.  EACH BORROWER, THE ADMINISTRATIVE AGENT, AND
EACH OF THE LENDERS MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON THIS
LOAN AGREEMENT, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS LOAN AGREEMENT
OR ANY OTHER LOAN DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH,
OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR
WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING, WITHOUT LIMITATION, ANY COURSE OF
CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF AGENT OR ANY LENDER
RELATING TO THE ADMINISTRATION OF THE LOAN OR ENFORCEMENT OF THE LOAN
DOCUMENTS, AND AGREE THAT NEITHER PARTY WILL SEEK TO CONSOLIDATE ANY SUCH
ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN
WAIVED.  EXCEPT AS PROHIBITED BY LAW,
EACH PARTY HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY
LITIGATION ANY SPECIAL, INDIRECT, SPECULATIVE, EXEMPLARY, PUNITIVE OR
CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL
DAMAGES.  EACH BORROWER CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ADMINISTRATIVE AGENT OR ANY LENDER HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT AGENT OR ANY LENDER WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER.  THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT
FOR EACH OF THE PARTIES HERETO TO ENTER INTO THE TRANSACTIONS CONTEMPLATED
HEREBY.

 

15.7                           Survival.  All representations, warranties, covenants
and agreements of a Borrower, or a Loan Party, herein or in any other Loan
Document, or in any notice, certificate, or other paper delivered by or on
behalf of a Borrower or a Loan Party pursuant hereto are significant and shall
be deemed to have been relied upon by the Administrative Agent and each of the
Lenders notwithstanding any investigation made by the Administrative Agent or
any of the Lenders or on its behalf and shall survive the delivery of the Loan
Documents and the making of the Loans pursuant thereto.  No review or approval by Administrative Agent
or the Lenders or any of their representatives, of any opinion letters,
certificates by professionals or other item of any nature shall relieve either
Borrower or anyone else of any of the obligations, warranties or
representations made by or on behalf of Borrower or a Loan Party, or any one or
more of them, under any one or more of the Loan Documents.

 

15.8                           Cumulative
Rights.  All of the rights of the Administrative
Agent and the Lenders hereunder and under each of the other Loan Documents and
any other agreement now or hereafter executed in connection herewith or
therewith, shall be cumulative and may be exercised singly, together, or in
such combination as the Administrative Agent may determine in its sole good
faith judgment.

 

141

 

15.9                           Claims
Against Administrative Agent or Lenders.

 

15.9.1          Borrower Must Notify.  The Administrative Agent and each of the
Lenders shall not be in default under this Agreement, or under any other Loan
Document, unless a written notice specifically setting forth the claim of such
Borrower shall have been given to Administrative Agent and each of the Lenders
within thirty (30) days after the subject Borrower first had actual Knowledge
or actual notice of the occurrence of the event which Borrower alleges gave
rise to such claim and Administrative Agent or any of the Lenders does not
remedy or cure the default, if any there be, with reasonable promptness
thereafter.  Such actual Knowledge or
actual notice shall refer to what was actually known by, or expressed in a
written notification furnished to, any of the persons or officials referred to
in Exhibit D as Authorized Representatives.

 

15.9.2          Remedies.  If it is determined by the final order of a
court of competent jurisdiction, which is not subject to further appeal, that Administrative
Agent or any of the Lenders has breached any of its obligations under the Loan
Documents and has not remedied or cured the same with reasonable promptness
following notice thereof, Administrative Agent’s and each of the Lenders’
responsibilities shall be limited to: (i) where the breach consists of the
failure to grant consent or give approval in violation of the terms and
requirements of a Loan Document, the obligation to grant such consent or give
such approval and to pay such Borrower’s reasonable costs and expenses
including, without limitation, reasonable attorneys’ fees and disbursements in
connection with such court proceedings; and (ii) the case of any such
failure to grant such consent or give such approval, or in the case of any
other such default by Administrative Agent or any of the Lenders, where it is
also so determined that Administrative Agent or any of the Lenders acted in bad
faith, the payment of any actual, direct, compensatory damages sustained by
such Borrower as a result thereof plus such Borrower’s reasonable costs and
expenses, including, without limitation, reasonable attorneys’ fees and
disbursements in connection with such court proceedings.

 

15.9.3          Limitations.  In no event, however, shall Administrative
Agent and each of the Lenders be liable to either Borrower or to any Loan Party
or anyone else for other damages such as, but not limited to, indirect,
speculative, special, exemplary, punitive or consequential damages whatever the
nature of the breach by Administrative Agent or any of the Lenders of its
obligations under this Loan Agreement or under any of the other Loan
Documents.  In no event shall Administrative
Agent or any of the Lenders be liable to either Borrower or to any Loan Party
or anyone else unless a written notice specifically setting forth the claim of
such Borrower shall have been given to Administrative Agent and each of the
Lenders within the time period specified above.

 

15.10                     Regarding
Consents.  Except to the extent
expressly provided herein, any and all consents to be made hereunder by the Administrative
Agent, Required Lenders, or Lenders shall be in the discretion of the party to
whom consent rights are given hereunder.

 

15.11                     Obligations
Absolute.  Except to the extent
prohibited by applicable law which cannot be waived, the Obligations of each
Borrower and the obligations of each Guarantor and the other Loan Parties under
the Loan Documents shall be joint and several, absolute, 

 

142

 

unconditional and irrevocable and shall be
paid strictly in accordance with the terms of the Loan Documents to which such
Loan Party is a party under all circumstances whatsoever, including, without
limitation, the existence of any claim, set off, defense or other right which
either Borrower or any Loan Party may have at any time against the Administrative
Agent or any of the Lenders whether in connection with the Loan or any
unrelated transaction.

 

15.12                     Table of
Contents, Title and Headings.  Any
Table of Contents, the titles and the headings of sections are not parts of
this Loan Agreement or any other Loan Document and shall not be deemed to
affect the meaning or construction of any of its or their provisions.

 

15.13                     Counterparts.  This Loan Agreement and each other Loan
Document may be executed in several counterparts, each of which when executed
and delivered is an original, but all of which together shall constitute one
instrument.  In making proof of this
agreement, it shall not be necessary to produce or account for more than one
such counterpart which is executed by the party against whom enforcement of
such loan agreement is sought.

 

15.14                     Satisfaction
of Commitment.  The Loan being made
pursuant to the terms hereof and of the other Loan Documents is being made in
satisfaction of Administrative Agent’s and each of the Lenders’ obligations
under the terms sheet dated June 10, 2005. 
The terms, provisions and conditions of this Agreement and the other
Loan Documents supersede the provisions of the Commitment.

 

15.15                     Time Of the Essence. 
Time is of the essence of each provision of this Agreement and each
other Loan Document.

 

15.16                     No Oral
Change.  This Loan Agreement and each
of the other Loan Documents may only be amended, terminated, extended or
otherwise modified by a writing signed by the party against which enforcement
is sought (except no such writing shall be required for any party which,
pursuant to a specific provision of any Loan Document, is required to be bound
by changes without such party’s assent). 
In no event shall any oral agreements, promises, actions, inactions,
knowledge, course of conduct, course of dealings or the like be effective to
amend, terminate, extend or otherwise modify this Loan Agreement or any of the
other Loan Documents.

 

15.17                     Monthly
Statements.  While Administrative
Agent may issue invoices or other statements on a monthly or periodic basis (a “Statement”),
it is expressly acknowledged and agreed that: (i) the failure of Administrative
Agent to issue any Statement on one or more occasions shall not affect either
Borrower’s obligations to make payments under the Loan Documents as and when
due; (ii) the inaccuracy of any Statement shall not be binding upon
Lenders and so Borrower shall always remain obligated to pay the full amount(s)
required under the Loan Documents as and when due notwithstanding any provision
to the contrary contained in any Statement; (iii) all Statements are
issued for information purposes only and shall never constitute any type of
offer, acceptance, modification, or waiver of the Loan Documents or any of
Lenders’ rights or remedies thereunder; and (iv) in no event shall any
Statement serve as the basis for, or a component of, any course of dealing,
course of conduct, or trade practice which would modify, alter, or otherwise
affect the express written terms of the Loan Documents.

 

[SIGNATURE
PAGES FOLLOW]

 

143

 

IN WITNESS WHEREOF this Agreement has been duly executed and delivered
as a sealed instrument at Boston, Massachusetts, as of the date first written
above.

 

	
  BORROWERS:

  	
  THE NEWKIRK MASTER LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  MLP GP LLC, its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Newkirk MLP Corp., its Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael L. Ashner

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  T-TWO PARTNERS, L.P., a Delaware limited

  partnership

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  HOLDING SUBSIDIARY LLC, its General

  Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  Newkirk Manager Corp., its

  Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael L. Ashner

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
							

 

S-1

 

	
  ADMINISTRATIVE AGENT

  AND DEPOSIT ACCOUNT

  	
  KEYBANK NATIONAL ASSOCIATION

  
	
  CO-AGENT:

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Jeffry M. Morrison

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LENDER:

  	
  KEYBANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Jeffry M. Morrison

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  
					

 

S-2

 

	
  DEPOSIT ACCOUNT CO-AGENT

  	
  BANK OF AMERICA, N.A.

  
	
  AND LENDER:

  	
   

  
	
   

  	
   

  
	
  901 Main Street

  	
   

  
	
  TX1-492-64-01

  	
  By:

  	
   

  	
   

  
	
  Dallas, TX 75201

  	
  Name: Will T. Bowers, Jr.

  
	
   

  	
  Title: Senior Vice President

  

 

S-3

 

	
  DOCUMENTATION AGENT

  	
  LASALLE BANK NATIONAL ASSOCIATION

  
	
  AND LENDER:

  	
   

  
	
   

  	
   

  
	
  135 South LaSalle Street

  	
  By:

  	
   

  	
   

  
	
  Chicago, Illinois 60603

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

S-4

 

	
  LENDER:

  	
  PB CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
  230 Park Avenue

  	
  By:

  	
   

  	
   

  
	
  New York, New York 10169

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

S-5

 

EXHIBITS:

 

	
   

  	
  Section

  Reference

  Number

  
	
   

  	
   

  
	
  Exhibit A
  - Definitions

  	
   

  
	
  Exhibit B-1
  - Sources and Uses of NMLP Loan

  	
   

  
	
  Exhibit B-2
  - Sources and Uses of T-Two Loan

  	
   

  
	
  Exhibit C-1
  - NMLP Note

  	
   

  
	
  Exhibit C-2
  - T-Two Note

  	
   

  
	
  Exhibit D
  - Authorized Representatives

  	
   

  
	
  Exhibit E
  - Required Property, Hazard and Other Insurance

  	
   

  
	
  Exhibit F
  - Ownership Interests and Taxpayer Identification Numbers

  	
   

  
	
  Exhibit G-1
  - Compliance Certificate NMLP

  	
   

  
	
  Exhibit G-2
  - Compliance Certificate T-Two

  	
   

  
	
  Exhibit G-3
  - Financial Covenant Compliance Certificate.

  	
   

  
	
  Exhibit H
  - Form of Assignment and Acceptance

  	
   

  
	
  Exhibit I
  - Lenders’ Commitments

  	
   

  
	
  Exhibit J
  - Individual Properties

  	
   

  
	
  Exhibit K
  - Loan Agenda

  	
   

  
	
  Exhibit L
  - Other Partnerships

  	
   

  
	
  Exhibit M
  - Newkirk Partnerships

  	
   

  
	
  Exhibit N
  - Allocated Payment Amounts

  	
   

  
	
  Exhibit O
  - Securitized Properties

  	
   

  
	
  Exhibit P
  - Cash Flow Projections

  	
   

  
	
  Exhibit Q
  - IPO

  	
   

  
	
  Exhibit R
  - Accounts

  	
   

  
	
  Exhibit S
  -Notice of Rate Selection

  	
   

  
	
  Exhibit T
  - NMLP Pre IPO Payment Amount Calculation Sheet

  	
   

  
	
  Exhibit U
  - GMAC Borrowers

  	
   

  

 

 

 

EXHIBIT A
TO MASTER LOAN AGREEMENT

DEFINITIONS

 

Accounts shall mean, collectively, the NMLP
Depository Accounts and the T-Two Depository Accounts.

 

Acquired Individual Asset as defined in Section 8.1.25.

 

Adjusted LIBOR Rate:  For any LIBOR Rate Interest Period, an
interest rate per annum equal to the sum of (A) the rate obtained by
dividing (x) the LIBOR Rate for such LIBOR Rate Interest Period by (y) a
percentage equal to one hundred percent (100%) minus the Reserve Percentage for
such LIBOR Rate Interest Period and (B) the LIBOR Rate Margin.

 

Adjusted LIBOR Rate Advance. means any
principal outstanding under this Agreement which pursuant to this Agreement
bears interest at the Adjusted LIBOR Rate.

 

Adjusted Prime Rate:  A rate per annum equal to the sum of (a) the
Prime Rate Margin and (b) the greater of (i) the Prime Rate or (ii) one
percent (1%) in excess of the Federal Funds Effective Rate.  Any change in the Adjusted Prime Rate shall
be effective immediately from and after a change in the Adjusted Prime Rate (or
the Federal Funds Effective Rate, as applicable).

 

Adjusted Prime Rate Advance. means any
principal amount outstanding under this Agreement which pursuant to this
Agreement bears interest at the Adjusted Prime Rate.

 

Administrative Agent.  KeyBank National Association, acting as
administrative agent for the Lenders.

 

Administrative Agent’s Fee as defined in Section 2.4.1.

 

Administrator LLC shall mean Administrator
LLC, a Delaware limited liability company, the beneficial interest in which is
owned by the Integrated Group.

 

Administrator LLC Note shall mean that certain
non-negotiable promissory note dated November 20, 1997 in the original
principal amount of $40,000,000.00 made by Administrator LLC and held by
Newkirk Finco LLC.

 

Administrator LLC Loan shall mean the certain
loan arrangement established by Newkirk Finco LLC in favor of Administrator LLC
as evidenced by Administrator LLC Note, the Administrator LLC Pledge, together
with, and all other instruments, documents, and agreements relative thereto, as
same may be amended, modified, supplemented, or replaced from time to time.

 

Administrator LLC Pledge shall mean that
certain pledge agreement dated November 20, 1997  given by Administrator LLC to Newkirk Finco
LLC, respecting the 49.99% ownership interest of Administrator LLC to and in
Newkirk Capital LLC.

 

Affiliate shall mean, as to any Person, any
other Person that, directly or indirectly, is in control of, is controlled by
or is under common control with such Person or is a director or officer of such
Person.  For purposes of this definition,
control of a Person shall mean the power, direct or indirect, (i) to vote
10% or more of the securities having ordinary voting power for the election

 

A-1

 

of directors of such Person or (ii) to
direct or cause the direction of the management and policies of such Person,
whether by contract or otherwise.

 

Aggregate DPO shall mean, from time to time,
the sum of each of the Discounted Payment Options for each of the Securitized
Notes.

 

Aggregate Investment Capitalization shall
mean, with respect to NMLP’s Investments, the value of the non real estate  assets, as calculated by NMLP and approved by
the Administrative Agent in its reasonable discretion, plus the value of the
underlying real estate assets.  The
underlying real estate assets will be valued based upon a 10 year discounted
Cash Flow.  The discount rate will be 9%
and the reversionary capitalization rate will be 11%.  The Cash Flow will be based upon (a) in
place rental income through the expiration of the primary term of the lease,
and (b) at primary term maturity of a given lease, (i) the lease rate
will be the renewal lease rate if the renewal rent is less than Market Rent,
and (ii) if the renewal rate is greater than the Market Rent, the post
primary term income stream will be based on the Market Rent, with a deduction
equal to 35% of nine months Market Rent at the primary term expiration date.

 

Agreement as defined in the Preamble.

 

Allocated Payment Amount shall mean, (i) for
each Individual Property which is owned by a NMLP Partnership, the amount set
forth on Exhibit N, and (ii) for each Acquired Individual
Asset, the amount determined by the Administrative Agent as set forth in Section 8.1.25,
less, in each case, any prior Mandatory Principal Prepayments received with
respect to such Individual Property or Acquired Individual Asset.

 

Amended and Restated Asset Management Agreement
shall mean that certain Amended and Restated Asset Management Agreement dated January 12,
2000, among and between Newkirk Asset Management LLC and the Net Lease
Partnerships and the Other Partnerships, as may be amended, modified,
supplemented, or replaced from time to time.

 

Annual Leasing Cost Budget as defined in Section 7.1.28(e).

 

Applicable Rate:  As such term is defined in Section 2.3.1(a).

 

Appraisal as defined in Section 7.1.20.

 

Assignment and Acceptance as defined in Section 13.3.1.

 

Authorized Representatives as defined in Section 4
and listed on Exhibit D.

 

Balancing Amount shall mean, from time to
time, any amount (if any) by which (a) the outstanding principal balance
of the T-Two Loan, exceeds (b) the aggregate of (i) the Aggregate
DPO, plus (ii) the outstanding principal balance of the Intercompany Loan.

 

Banking Day shall mean a day on which banks
are not required or authorized by law to close in the city in which Administrative
Agent’s principal office is situated.

 

Borrower and Borrowers as defined in
the Preamble.

 

Breakage Costs 
as defined in Section 2.3.15.

 

A-2

 

Business Day shall mean any day of the year on
which offices of Administrative Agent are not required or authorized by law to
be closed for business in Boston, Massachusetts.  If any day on which a payment is due is not a
Business Day, then the payment shall be due on the next day following which is
a Business Day, and such extension of time shall be included in computing
interest and fees in connection with such payment.  Further, if there is no corresponding day for
a payment in the given calendar month (i.e., there is no “February 30th”),
the payment shall be due on the last Business Day of the calendar month.

 

Calculation Date as defined in Section 7.3.1(a).

 

Calculation Period as defined in Section 7.3.1(a).

 

Call Option Agreement shall mean that certain
Omnibus Agreement; Put-Call Option Agreement Amendment; Loan Commitment and
Agreement to Guaranty, dated November 24, 2003, among NMLP, T-Two, NK-CR
Holdings LLC, and Holding Subsidiary LLC, as the same may be amended, modified,
supplemented, or replaced from time to time, pursuant to which, among other
things, NMLP is granted an option to acquire either (a) certain assets of
T-Two, or (b) a 100% ownership interest in T-Two.

 

Cash Flow shall mean, in each calendar year,
in each instance determined in a manner satisfactory to the Administrative
Agent, the aggregate sum of (i) all revenues and cash receipts of the NMLP
Partnerships less (ii) the sum of the NMLP Partnerships’ (a) property
level operating expenses including but not limited to ground rent, (b) management
fees and (c) administrative fees plus (iii) all cash distributions
received from Other Partnerships.

 

Cash Flow Projections shall mean a detailed schedule of
all cash Distributions projected to be made to NMLP from the NMLP Subsidiaries
within the next one hundred and eighty (180) days, as detailed on Exhibit P,
being the Cash Flow Projections as of the Closing Date based upon information
then available to NMLP, and subject to change as shall be detailed in the
respective Officer’s Certificate to be provided to the Administrative Agent as
set forth herein.

 

Cash Management Agreement one or more cash
management agreements to be entered into pursuant to Sections 7.1.14 and 7.2.14.

 

Certificates shall mean the Grantor Trust T-1
Certificate and the Grantor Trust T-2 Certificate.

 

Certificates of Exemption as defined in Section 2.7.3(c).

 

Certificates of Partial Exemption as defined
in Section 2.7.3(b).

 

Change of Control shall mean the occurrence of
any of the following, as determined solely by the Administrative Agent (for
purposes of this definition, ownership of interests in a Borrower that are
subject to a Lien permitted under the Security Documents shall be deemed
beneficially owned by the pledgor thereof):

 

1.             A
change in the identity of any general partner, managing member, and/or any
material change in the effective control of any general partner or managing
member of any NMLP Loan Parties (other than NMLP, NMLP GP, any MLP Holder or
any Newkirk Group Entity) and/or any NMLP Subsidiary, such that effective
control is not in

 

A-3

 

NMLP (except as to any change
in the effective control of any NMLP Loan Party which is released as provided
for herein from its obligations under the Loan Documents);

 

2.             A
change in the identity of any general partner, managing member, and/or any
material change in the effective control of any general partner or managing
member of any T-Two Loan Parties, such that effective control is not in a
Newkirk Group Entity (except as to any change in the effective control of any T-Two
Loan Party which is released as provided for herein from its obligations under
the Loan Documents);

 

3.             A
change in the identity of the general partner of a Borrower and/or any material
change in the effective control of the general partner of a Borrower, from the
identity and control structure existing as of the respective Borrower’s Funding
Date, with the exception of the REIT or its subsidiary becoming the general
partner of the Borrower in order to effect the IPO;

 

4.             A
change in the identity of any general partner, managing member, and/or
effective control of any general partner or managing member of any Loan Parties
which is a Newkirk Group Entity, such that effective control is not in any
other Newkirk Group Entity;

 

5.             The
death or disability of both of Michael Ashner and Peter Braverman, or the
failure of both of Michael Ashner and Peter Braverman,  at any time to exercise that authority and
discharge those management responsibilities with respect to either Borrower as
are exercised and discharged by such Person at the time of the execution of
this Agreement, provided that alternative management may be substituted for
either of Michael Ashner or Peter Braverman with the consent of the
Administrative Agent, such consent not to be unreasonably withheld; provided,
however, the death or disability of both Michael Ashner and Peter Braverman
shall not be a default hereunder if within thirty (30) days of the death or
disability of the second to die or become disabled, each Borrower provides the Administrative
Agent with evidence satisfactory to the Administrative Agent of acceptable
replacement or substitute management of such Borrower and their respective
Subsidiaries;

 

6.             Prior
to the consummation of the IPO, Apollo Real Estate Investment Fund III, L.P.
shall cease to own, directly or indirectly, at least a twenty percent (20%)
beneficial ownership interest in NMLP;

 

7.             Prior
to the consummation of the IPO, Vornado Realty Trust shall cease to own,
directly or indirectly, at least a 10% beneficial ownership interest in NMLP;
or

 

8.             Prior
to the consummation of the IPO, Vornado Realty Trust and/or Apollo Real Estate
Investment Fund III, L.P. and/or WEM 
Brynmawr Associates LLC shall cease to own, directly or indirectly, in
the aggregate, at least a 51 % beneficial ownership interest in NMLP.

 

Closing Date as defined in Section 5.1.

 

Code shall mean the Internal Revenue Code of
1986, as amended from time to time, and the regulations promulgated and rulings
issued thereunder.  Section references
to the Code are to the

 

A-4

 

Code, as in effect at the date of this Agreement and any subsequent provisions
of the Code, amendatory thereof, supplemental thereto or substituted therefor.

 

Collateral shall mean, collectively, the NMLP
Collateral and the T-Two Collateral.

 

Commitment shall mean, with respect to each
Lender, the amount set forth on Exhibit I hereto as the amount of
such Lender’s commitment to make advances to each Borrower, as may be amended
from time to time by the Administrative Agent as provided in Article 13
upon any assignment by a Lender permitted under this Loan Agreement.

 

Commitment Percentage shall mean, with respect
to each Lender, the percentage set forth on Exhibit I hereto as
such Lender’s percentage of the aggregate Commitments of all of the Lenders as
to each of the NMLP Loan and the T-Two Loan, as may be amended from time to time
by the Administrative Agent as provided in Article 13 upon any assignment
by a Lender permitted under this Loan Agreement.

 

Consents shall mean the NMLP Consents and
T-Two Consents.

 

Consolidated Debt Service as defined in Section 7.3.1(a)(v).

 

Consolidated Debt Service Coverage as defined
in Section 7.3.1(a)(iii).

 

Consolidated Leverage Ratio as defined in Section 7.3.2.

 

Consolidated Net Cash Flow as defined in Section 7.3.1(a)(iv).

 

Contract to Provide Asset Management Services
shall mean that certain Asset Management Agreement dated as of January 1,
2002, by and between Newkirk Asset Management LLC and Winthrop Financial
Associates, as may be amended, modified, supplemented, or replaced from time to
time.

 

Cost to Repair as defined in Section 14.3.

 

Dautec Note shall mean that certain promissory
note in the original principal amount of One Million One Hundred Seventy-Five
Thousand Dollars ($1,175,000.00) dated May 1, 2000 made by Dautec
Associates Limited Partnership, a Connecticut limited partnership, and held by
NK-Dautec Loan, L.P., together with any and all other instruments, documents,
and agreements executed in connection therewith, as same may be amended,
modified, supplemented, or replaced from time to time.

 

Debt shall mean, with respect to any Person,
without duplication, (i) all indebtedness of such Person for borrowed
money, (ii) all indebtedness of such Person for the deferred purchase
price of property or services (other than property and services purchased, and
expense accruals and deferred compensation items arising, in the ordinary
course of business), (iii) all obligations of such Person evidenced by
notes, bonds, debentures or other similar instruments (other than performance,
surety and appeal bonds arising in the ordinary course of business), (iv) 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), (v) all obligations of such Person under leases which have
been, or should

 

A-5

 

be, in accordance with generally accepted accounting principles,
recorded as capital leases, to the extent required to be so recorded, (vi) all
reimbursement, payment or similar obligations of such Person, contingent or
otherwise, under acceptance, letter of credit or similar facilities (other than
letters of credit in support of trade obligations or in connection with workers’
compensation, unemployment insurance, old-age pensions and other social
security benefits in the ordinary course of business), (vii) all Debt in
the nature of that referred to in clauses (i) through (vi) above
which is guaranteed directly or indirectly by such Person, or in effect
guaranteed directly or indirectly by such Person through an agreement (A) to
pay or purchase such Debt or to advance or supply funds for the payment or
purchase of such Debt, (B) to purchase, sell or lease (as lessee or
lessor) property, or to purchase or sell services, primarily for the purpose of
enabling the debtor to make payment of such Debt or to assure the holder of
such Debt against loss in respect of such Debt, (C) to supply funds to or
in any other manner invest in the debtor (including any agreement to pay for
property or services irrespective of whether such property is received or such
services are rendered) or (D) otherwise to assure a creditor against loss
in respect of such Debt, (viii) any obligation, contingent or otherwise,
of such Person guaranteeing or having the economic effect of guaranteeing any
indebtedness referred to in clause (i) through (vi) above of any
Person, either directly or indirectly, and (ix) all Debt referred to in
clauses (i) through (vi) above secured by (or for which the holder of
such Debt has an existing right, contingent or otherwise, to be secured by) any
Lien, security interest or other charge or encumbrance upon or in property
(including, without limitation, accounts and contract rights) owned by such
Person, even though such Person has not assumed or become liable for the
payment of such Debt.

 

Default as defined in Section 10.1.

 

Default Rate as defined in Section 2.3.13.

 

Delinquent Lender as defined in Section 13.2.8.

 

Deposit Account Co-Agent as defined in the
Preamble.

 

Depository Accounts shall mean, collectively,
the NMLP Depository Accounts and the T-Two Depository Accounts.

 

Discharge Documents as defined in Section 7.1.35.

 

Discounted Payment Option shall mean the
options provided for in Securitization Documents for the prepayment at a
reduced amount of any of the Securitized Notes.

 

Distribution shall mean, with respect to any
Person, that such Person has paid a dividend or returned any equity capital to
its stockholders, members or partners or made any other distribution, payment
or delivery of property (other than common stock or partnership or membership
interests of such Person) or cash to its stockholders, members or partners as
such, or redeemed, retired, purchased or otherwise acquired, directly or
indirectly, for a consideration any shares of any class of its capital stock or
any membership or partnership interests (or any options or warrants issued by
such Person with respect to its capital stock or membership or partnership
interests), or shall have permitted any of its Subsidiaries to purchase or
otherwise acquire for a consideration any shares of any class of the capital
stock or any membership or partnership interests of such Person (or any options
or warrants issued by such Person with respect to its capital stock or
membership or partnership interests). Without limiting the foregoing,

 

A-6

 

“Distributions” with respect to any Person shall also include all
payments made by such Person with respect to any stock appreciation rights,
plans, equity incentive or achievement plans or any similar plans, and any
proceeds of a dissolution or liquidation of such Person.

 

Documentation Agent as defined in the
Preamble.

 

Dollars shall mean lawful money of the United
States.

 

Economic Discontinuance Rights shall mean the
right of a tenant under a Lease relative to any Individual Property to
terminate the Lease prior to the expiration of the primary term of the Lease by
making a Rejectable Offer to the applicable Net Lease Partnership, all of the
foregoing as and when provided for in the Lease relative to such Individual
Property.  If the Rejectable Offer is accepted
by the Net Lease Partnership, the Individual Property is to be sold to the said
tenant for the amount as set forth in the Lease.  If the Rejectable Offer is rejected by the
Net Lease Partnership, the Lease terminates as set forth in the Lease.

 

Economic Discontinuance Sale shall mean the
sale of an Individual Property to a tenant upon the acceptance of a Rejectable
Offer by the applicable Net Lease Partnership.

 

ED Cash Flow as defined in Section 7.1.24(f).

 

ED Properties shall mean all Individual Properties
as to which a NMLP Partnership has rejected the Rejectable Offer made by a
tenant pursuant to the tenant’s exercise of its Economic Discontinuance
Rights.  An Individual Property shall no
longer be considered an ED Property at such time as such Individual Property
evidences a minimum ratio of cash flow to debt service (as determined by the Administrative
Agent based solely on revenues and debt service of such Individual Property
based on leases executed in accordance with the requirements of Section 7.1.22),
of no less than 1.70 to 1.0 prior to the Initial Maturity Date, and no less
than 2.0 to 1.0 at any time thereafter.

 

Eligible Assignee shall mean any of (a) a
commercial bank organized under the laws of the United States, or any State
thereof or the District of Columbia, and having total assets in excess of
$1,000,000,000; (b) a savings and loan association or savings bank
organized under the laws of the United States, or any State thereof or the
District of Columbia, and having a net worth of at least $100,000,000,
calculated in accordance with generally accepted accounting principles; (c) 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 total assets in excess of
$1,000,000,000, 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; (d) the central bank of any country which is
a member of the OECD; and (e) any other assignee that, in the reasonable
judgment of the Administrative Agent, is a reputable institutional investor
with substantial experience in lending and originating loans similar to the
Loan, or in purchasing, investing in or otherwise holdings such loans, having a
financial net worth of at least $100,000,000 and (f) any Lender Affiliate
or a Related Fund of a Lender.  For the
purposes hereof, “Lender Affiliate” shall mean, (a) with respect to any
Person who would otherwise be an Eligible Assignee under clauses (a) -
(e), above (a “Qualified Assignee”), (i) an Affiliate of such Qualified
Assignee or (ii) any entity (whether a corporation, partnership, trust or
otherwise) that is engaged in making, purchasing, holding or otherwise
investing in bank loans and similar extensions of credit in the

 

A-7

 

ordinary course of its business and is administered (including as
placement agent therefor) or managed by a Qualified Assignee or an Affiliate of
such Qualified Assignee and (b) with respect to any Lender that is a fund
which invests in bank loans and similar extensions of credit, any other fund
that invests in bank loans and similar extensions of credit and is managed by
the same investment advisor as such Lender or by an Affiliate of such
investment advisor (i.e., a  Related Fund
of such Lender).  Neither a Borrower nor
an affiliate of a Borrower shall be Eligible Assignee.

 

Environmental Indemnity as defined in Section 3.1.25.

 

Environmental Laws as defined in the
Environmental Indemnity.

 

ERISA shall mean the Employee Retirement
Income Security Act of 1974, as amended from time to time, and the regulations
promulgated and rulings issued thereunder. 
Section references to ERISA are to ERISA, as in effect at the date
of this Agreement and any subsequent provisions of ERISA, amendatory thereof,
supplemental thereto or substituted therefor.

 

ERISA Affiliate shall mean each person (as
defined in Section 3(9) of ERISA) which together with either Borrower
or a Subsidiary of a Borrower would be deemed to be a “single employer”  within the meaning of Section 414(b),
(c), (m) or (o) of the Code.

 

Escrow Agreement Respecting Ground Lease Extensions and Lease Options
as defined in Section 3.1.26.

 

Eurocurrency Liabilities as defined in Section 2.7.1(b).

 

Event of Default as defined in Section 10.1.

 

Excepted Loan Parties shall mean each Newkirk
Indemnitor, any Other Partnership, any Partially Owned Limited Partnerships,
and the MLP Holders.

 

Excess Cash Flow shall mean, for each fiscal
quarter of NMLP, (i) Consolidated Net Cash Flow for such quarter, less (ii) the
sum of (A) Consolidated Debt Service, and (B) all NMLP Mandatory
Principal Prepayments and T-Two Mandatory Principal Prepayments (except any
Mandatory Principal Payment made under Section 2.3.8(a)(i)), as determined
in a manner satisfactory to the Administrative Agent.

 

Excluded Taxes as defined in Section 2.7.3(a)(v).

 

Existing NMLP Loan as defined in Section 1.3.1.

 

Existing T-Two Loan as defined in Section 1.4.1.

 

Extended Maturity Date as defined in Section 2.2.

 

Extended Term as defined in Section 2.2.

 

Extension Fee as defined in Section 2.4.2.

 

A-8

 

Federal Funds Effective Rate:  Shall mean, for any day, the rate per annum
(rounded upward to the nearest on one-hundredth of one percent (1/100 of 1%))
announced by the Federal Reserve Bank of Cleveland on such day as being the
weighted average of the rates on overnight federal funds transactions arranged
by federal funds brokers on the previous trading day, as computed and announced
by such Federal Reserve Bank in substantially the same manner as such Federal
Reserve Bank computes and announces the weighted average it refers to as the “Federal
Funds Effective Rate.”

 

Financial Covenants  shall mean those covenants of NMLP set forth
in Sections 7.3.1, 7.3.2, 7.3.3 and 7.3.4.

 

First Extended Maturity Date as defined in Section 2.2.

 

First Extended Term as defined in Section 2.2.

 

First Mortgage Debt shall mean, from time to
time, any obligations of a Net Lease Partnership secured by a first mortgage or
first deed of trust on one or more Individual Properties, as of the Closing
Date as set forth in Schedule 6.1.18(b)(i).  The GMAC Mortgage Loan is a First Mortgage
Debt.

 

Fiscal Quarter shall mean each quarterly
period (a) beginning on January 1 and ending on March 31, (b) beginning
on April 1 and ending on June 30, (c) beginning on July 1 and
ending on September 30, and (d) beginning on October 1 and
ending on December 31.

 

Fiscal Year shall mean each twelve month
period commencing on January 1 and ending on December 31.

 

Fleet Loan Agreement as defined in Section 1.3.1.

 

Foreign Lender as defined in Section 2.7.3(b).

 

Form Lease. As
defined in Section 7.1.22(c).

 

Formation Documents shall mean, singly and
collectively, the partnership agreements, joint venture agreements, limited
partnership agreements, limited liability company or operating agreements and
certificates of limited partnership and certificates of formation, articles (or
certificate) of incorporation and by-laws and any similar agreement, document
or instrument of any Person.

 

Free Cash Flow shall mean for any four (4) fiscal
quarters of NMLP the Consolidated Net Cash Flow for such period less (i) Consolidated
Debt Service for such period and less (ii) any deposits made or required
to be made into the T/I Fund Account during such period.

 

Funding Date as defined in Section 5.1.

 

Future Commitment as defined in Section 13.2.8.

 

GAAP shall mean generally accepted accounting
principles in the United States of America as of the date applicable.

 

A-9

 

GMAC Borrower shall mean any Net Lease
Partnership obligated on a GMAC Mortgage Loan. 
The GMAC Borrowers as of the Closing Date are listed in Exhibit U.

 

GMAC Mortgage Holder shall mean GMAC
Commercial Mortgage Corporation and/or, as assignee, Norwest Bank Minnesota,
N.A.

 

GMAC Mortgage Loan shall mean the pool of
first mortgage loans securitized by the GMAC Mortgage Holder on certain of the
Individual Properties listed in Schedule 6.1.18(b)(ii).

 

Governmental Authority shall mean any court,
board, agency, commission, office or authority of any nature whatsoever for any
governmental unit (federal, state, county, district, municipal, city or
otherwise) whether now or hereafter in existence.

 

Grantor Trust shall mean the trust created
pursuant to the Grantor Trust Agreement, together with any replacement thereof
or successor thereto.

 

Grantor Trust Agreement shall mean that
certain Second Amended and Restated Grantor Trust Agreement dated April 1,
1999 among and between NK-CR T1 Seller LLC, T-Two Partners, L.P., Midland Loan
Services, Inc., as Servicer, and LaSalle National Bank, as Grantor Trust
Trustee, all as provided therein, as amended by that certain Amendment No. 1
To Second Amended and Restated Grantor Trust Agreement dated as of November 24,
2003, as same may be amended, modified, supplemented, or replaced from time to
time.

 

Grantor Trust Trustee, presently LaSalle Bank
National Association, shall have the meaning provided in the Grantor Trust
Agreement.

 

Grantor Trust T-1 Certificate shall have the
meaning provided in the Grantor Trust Agreement.

 

Grantor Trust T-2 Certificate shall have the
meaning provided in the Grantor Trust Agreement.

 

Ground Leases shall mean, from time to time,
any Ground Lease relative to an Individual Property as to which a Net Lease
Partnership is the ground lessee, including, without limitation, any ground
lease which shall be entered into in connection with the exercise by a Net
Lease Partnership of a Remainder Ground Lease Option.

 

Ground Lease Extension Options as defined in Section 3.1.26(b).

 

Ground Lease Extension Option Schedule as
defined in Section 6.1.18(f).

 

Guarantor shall mean, collectively, the NMLP
Guarantor and the T-Two Guarantor.

 

Guaranty shall mean, collectively, the NMLP
Guaranty and the T-Two Guaranty.

 

Guaranty Partnership GPs shall mean, collectively,
any NMLP Partnership GP which is the general partner of any NMLP Partnership
which is, effective as of the Closing Date or at any time thereafter, owner of
an applicable Individual Property free and clear of any Mortgage Debt (other
than the Securitized Notes or Mortgage Debt in favor of the Administrative
Agent).

 

Guaranty Partnerships shall mean,
collectively, any NMLP Partnership which is, effective as of the Closing Date or
at any time thereafter, owner of an applicable Individual Property free and

 

A-10

 

clear of any Mortgage Debt (other than the Securitized Notes or
Mortgage Debt in favor of the Administrative Agent).

 

Hazardous Materials shall mean and include
asbestos, flammable materials, explosives, radioactive substances,
polychlorinated biphenyls, radioactive substances, other carcinogens, oil and
other petroleum products, pollutants or contaminants that could be a detriment
to the environment, and any other hazardous or toxic materials, wastes, or
substances which are defined, determined or identified as such in any past,
present or future federal, state or local laws, rules, codes or regulations, or
any judicial or administrative interpretation of such laws, rules, codes or
regulations.

 

Indemnified Party as defined in Sections 7.1.21
and 7.2.17.

 

Independent shall mean, when used with respect
to any Person, a Person who (i) is in fact independent, (ii) does not
have any direct financial or indirect financial interest (other than amounts
payable to such Person for serving as a director) in the Borrower, any Borrower
Subsidiary, or any Loan Party or in any Affiliate of any thereof or in any
constituent partner or member of the Borrower, any Borrower Subsidiary, or any
Loan Party or any Affiliate of any thereof and (iii)  is not connected
with the Borrower, any Borrower Subsidiary, or any Loan Party or any Affiliate
thereof or any constituent partner of the Borrower, any Borrower Subsidiary, or
any Loan Party or any Affiliate of any thereof as an officer, employee,
promoter, underwriter, trustee, partner, director, or person performing similar
functions.  Any such Person shall not be
deemed to fail to comply with the requirements of clause (iii), above, solely
due to such Person serving as an Independent director of Newkirk MLP Corp.  Whenever it is herein provided that any
Independent Person’s opinion or certificate shall be provided, such opinion or
certificate shall state that the Person executing the same has read this
definition and is Independent within the meaning hereof.

 

Individual Property and Individual
Properties shall mean, from time to time, with respect to each NMLP
Partnership, Other Partnership, Subsidiary Limited Partnership, Partially Owned
Limited Partnership or other Net Lease Partnership, each real estate property
owned by such entity, together with all improvements, fixtures, equipment, and
personalty relating to such property, with the Individual Properties as of the
date hereof being listed on Exhibit J hereto and shall include any
real property hereafter acquired by any NMLP Subsidiary.

 

Initial Term as defined in Section 2.2.

 

Integrated Documents shall mean the
Indemnification Agreement dated  as of November 20,
1997 between certain Newkirk Entities and the Integrated Group, the Amended and
Restated Cash Participation Agreement dated as of January 1, 2002 between
certain Newkirk Group Entities and the Integrated Group, and any and other
agreements entered into relative thereto to establish, evidence or secure the
Integrated Obligations, as such may be amended, modified, supplemented or
replaced from time to time.

 

Integrated Group shall mean Administrator LLC,
a Delaware limited liability company, as agent for the former principals of the
general partners of various of the Borrower’s Subsidiaries, and any of such
principals.

 

A-11

 

Integrated Obligations shall mean the
obligations of certain of the Newkirk Group Entities to the Integrated Group
under the Integrated Documents, such obligations arising originally out of the
acquisition of certain of the assets of NMLP and the NMLP Subsidiaries from the
Integrated Group.

 

Intercompany Loan as defined in Section 7.2.21.

 

Intercompany Loan Documents shall mean any and
all document evidencing the Intercompany Loan, including, without limitation,
the Intercompany Loan Agreement and that certain Revolving Promissory Note dated
as of November 24, 2003 made by NMLP payable to T-Two.

 

Intercompany Loan Agreement shall mean the
Revolving Loan Agreement dated as of November 24, 2003 entered into
between T-Two and NMLP with respect to the Intercompany Loan.

 

Interest Rate Agreement  shall mean (i) any interest rate
protection agreements, now or hereafter executed by and between a Borrower and Keybank,
National Association or another financial institution acceptable to the Administrative
Agent, and any and all existing or future extensions, renewals, modifications
and amendments thereto, including, without limitation, the ISDA Master
Agreement, the Schedule to the Master Agreement, and any and all
confirmations for individual transactions executed under the foregoing
agreements, or any other interest rate agreement related in any way to the
Loan, but only to the extent assigned to the Administrative Agent, on behalf of
the Lenders, to secure the Obligations and (ii) that certain Interest Rate
Protection Cash Collateral Pledge Agreement dated as of the date hereof, by and
between such Borrower and the Administrative Agent.

 

Investment shall mean the acquisition of any
real or tangible personal property or of any stock or other security, any loan,
advance, bank deposit, money market fund, contribution to capital, extension of
credit (except for accounts receivable arising in the ordinary course of business
and payable in accordance with customary terms), or purchase or commitment or
option to purchase or otherwise acquire real estate or tangible personal
property or stock or other securities of any party or any part of the business
or assets comprising such business, or any part thereof.

 

IPO as defined in Section 7.1.31.

 

IPO Payment shall mean the amount of (a) One
Hundred and Fifty Million Dollars ($150,000,000.00), less (b) the
aggregate of all payments made by the NMLP and T-Two under Section 2.3.8(a) hereof
prior to the date the IPO Payment is made.

 

Knowledge shall mean with respect to either
Borrower and any of their respective Subsidiaries, the knowledge of any of
Michael Ashner, Peter Braverman, Thomas Staples, Carolyn Tiffany, Lara Sweeney,
or Jay Cramer, or any Person who shall at any time replace any of the
foregoing.

 

Late Charge as defined in Section 2.3.14.

 

Lease shall mean any lease relative to all or
any portion of an Individual Property or a Securitized Property, whether a
direct lease or a lease resulting from a merger by operation of law of a Master
Lease and a Sublease.

 

Lease Schedule as defined in Section 6.1.18(e).

 

A-12

 

Legal Requirements shall mean all applicable
federal, state, county and local laws, by-laws, rules, regulations, codes and
ordinances, and the requirements of any governmental agency or authority having
or claiming jurisdiction with respect thereto, including, but not limited to,
all Environmental Laws, and those applicable to zoning, subdivision, building,
health, fire, safety, sanitation, the protection of the handicapped, and
environmental matters and shall also include all orders and directives of any
court, governmental agency or authority having or claiming jurisdiction with
respect thereto.

 

Lender’s Consultant as defined in Section 14.5.

 

Lenders as defined in the Preamble.

 

Leyden Note shall mean that certain promissory
note in the original principal amount of One Million Nine Hundred and Five
Dollars ($1,905,000.00) dated March 31, 1999 made by Leyden Associates
Limited Partnership, a Connecticut limited partnership, and held by NK-Leyden
Loan, L.P., together with any and all other instruments, documents, and
agreements executed in connection therewith, as same may be amended, modified,
supplemented, or replaced from time to time.

 

LIBOR Business Day:  A Business Day on which dealings in U.S.
dollars are carried on in the London Interbank Market.

 

LIBOR Rate: 
For any LIBOR Rate Interest Period, the average rate (carried to
1/100,000 of 1%) as shown in Dow Jones Markets (formerly Telerate) (Page 3750)
at which deposits in U.S. dollars are offered by first class banks in the
London Interbank Market at approximately 11:00 a.m. (London time) on the
day that is two (2) LIBOR Business Days prior to the first day of such
LIBOR Rate Interest Period with a maturity approximately equal to such LIBOR
Rate Interest Period and in an amount approximately equal to the amount to
which such LIBOR Rate Interest Period relates, adjusted for reserves and taxes
if required by future regulations.  If
Dow Jones Markets no longer reports such rate or Administrative Agent
determines in good faith that the rate so reported no longer accurately reflects
the rate available to the Administrative Agent in the London Interbank Market,
Administrative Agent may select a replacement index.

 

LIBOR Rate Interest Period:  With respect to each amount bearing interest
at a LIBOR based rate, a period of one (1), two (2), three (3), or six (6) months,
to the extent deposits with such maturities are available to the Administrative
Agent, commencing on a LIBOR Business Day, as selected by a Borrower; provided,
however, that (i) any LIBOR Rate Interest Period which would otherwise end
on a day which is not a LIBOR Business Day shall continue to and end on the
next succeeding LIBOR Business Day, unless the result would be that such LIBOR
Rate Interest Period would be extended to the next succeeding calendar month,
in which case such LIBOR Rate Interest Period shall end on the next preceding
LIBOR Business Day , (ii) any LIBOR Rate Interest Period which begins on a
day for which there is no numerically corresponding date in the calendar month
in which such LIBOR Rate Interest Period would otherwise end shall instead end
on the last LIBOR Business Day of such calendar month, and (iii) Borrower
may not select a LIBOR Rate Interest Period which would end after the Maturity
Date.

 

LIBOR Rate Margin shall mean, (a) at any
time while the Reduction Condition is not satisfied, 200 basis points, or (b) at
any time while the Reduction Condition is satisfied, 175 basis points.

 

A-13

 

LIBOR Rate Option as defined in Section 2.3.2.

 

Licenses and Permits shall mean all licenses,
permits, authorizations and agreements issued by or agreed to by any
governmental authority, including, but not limited to, building permits,
occupancy permits and such special permits, variances and other relief as may
be required pursuant to Legal Requirements which may be applicable to the
Individual Property.

 

Lien shall mean any mortgage, deed of trust,
lien, pledge, hypothecation, assignment, security interest, or any other
encumbrance, charge or transfer, 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, and mechanic’s,
materialmen’s and other similar liens and encumbrances.

 

Liquid Assets shall mean the sum of the
following unencumbered (other than by Liens held by the Administrative Agent on
behalf of the Lenders) assets: (i) all cash (denominated in United States
dollars), (ii) any demand deposits, (iii) marketable securities
consisting of short-term (maturity of one year or less) obligations issued or
guaranteed as to principal and interest by the United States of America, (iv) short-term
certificates of deposit, with a maturity of one year or less, issued by any
bank organized under the laws of the United States of America having total
assets in excess of $1,000,000,000.00, and (v) any other securities
acceptable to the Administrative Agent as evidenced by the Administrative Agent’s
written approval.

 

Liquidation Proceeds. Amounts received by the Administrative
Agent and/or the Lenders in the exercise of the rights and remedies under the
Loan Documents (including, but not limited to, all rents, profits and other
proceeds received by the Administrative Agent and/or the Lenders from the
liquidation of, or exercising rights upon the occurrence of an Event of Default
relative to, any Collateral, but not including any amount bid at a foreclosure
sale or on behalf of the Administrative Agent or otherwise credited to a
Borrower in, any deed-in-lieu of foreclosure or similar transaction).

 

Loan and Loans as defined in Section 1.6.3.

 

Loan Advance shall mean, collectively, the
NMLP Loan Advance and the T-Two Loan Advance.

 

Loan Agenda shall mean that Document Agenda
respecting the establishment of the Loans annexed hereto as Exhibit K.

 

Loan Agreement as defined in the Preamble.

 

Loan Documents shall mean, collectively, the
NMLP Loan Documents and the T-Two Loan Documents.

 

Loan Party and Loan Parties shall mean,
singly and collectively, the NMLP Loan Parties and the T-Two Loan Parties.

 

London Banking Day shall mean any day on which
dealings in deposits in Dollars are transacted in the London interbank market.

 

Mandatory Principal Prepayments shall mean
collectively, any NMLP Mandatory Principal Prepayments and/or T-Two Mandatory
Principal Prepayments.

 

A-14

 

Market Rent shall mean, at any point of
determination, the then current rentals being charged to new tenants for
comparable quality space located on comparable quality property within the
subject geographic area of the subject Individual Property, taking into account
and giving effect to, without limitation, such considerations as size, location
of the Individual Property, lease term and level and quality of building
construction and space improvements, tenant allowances, and rent concessions,
all as reasonably determined by the Administrative Agent.

 

Master Lease shall mean any master lease
entered into, or assumed by, a Net Lease Partnership relative to an Individual
Property, pursuant to which the lessee thereunder entered into a Sublease with
a tenant, each of which Master Leases has by operation of law merged into the
applicable Sublease.

 

Material Adverse Effect shall mean a material
adverse effect on, determined separately with respect to each Borrower,  (i) the business, assets, prospects,
operations or financial or other condition of any of the Borrowers or, taken as
a whole, the Borrower Subsidiaries and the Loan Parties, including, without
limitation, all Distributions to be made pursuant to Cash Flow Projections, (ii) the
ability of any of the Borrowers, the Loan Parties, or the Borrower Subsidiaries
to perform any material Obligations or to pay any Obligations which it is
obligated to pay in accordance with the terms hereof or of any other Loan
Document, (iii) the rights of, or benefits available to, the Administrative
Agent and/or any of the Lenders under any Loan Document or (iv) any Lien
given to Administrative Agent and/or any of the Lenders on any material portion
of the Collateral or the priority of any such Lien.

 

Maturity shall mean the Maturity Date, or, if
the Maturity Date has been extended pursuant to the provisions of the Loan
Agreement, the applicable Extended Maturity Date, or in any instance, upon
acceleration of the Loan, if the Loan has been accelerated by the Required Lenders
upon an Event of Default.

 

Maturity Date as defined in Section 2.2.

 

Minimum Consolidated Net Worth as defined in Section 7.3.4.

 

MLP Holders shall mean Newkirk MLP Corp. and
Vornado MLP GP L.L.C., being the holders of 100% of the membership interest in
MLP GP LLC.

 

Mortgage Debt shall mean, singly and
collectively, the First Mortgage Debt, the Other Second Mortgage Debt, and the
Securitized Notes.

 

Mortgage Debt Schedule as defined in Section 6.1.18(h).

 

Mortgage Debt Test shall mean shall be deemed
to be triggered if the aggregate equity (as determined by the Administrative
Agent based upon then current valuations) in excess of all liens on the
Individual Properties of all Net Lease Partnerships as to which a Default or
Event of Default (regardless of how or if defined) has occurred and the holder
has accelerated the obligations due thereunder and commenced exercising its
rights upon such Default or Event of Default, is greater than $10,000,000.00,
assuming for purposes hereof that such an event has occurred for the subject
Mortgage Debt.

 

A-15

 

Mortgage Partnership shall mean each of the
following NMLP Partnerships, together with any other Net Lease Partnership
which is required hereafter to grant a mortgage/deed of trust to the
Administrative Agent pursuant to the terms hereof to secure the Obligations: (a) Newkirk
Dalhill L.P.; (b) Newkirk Elway L.P.; (c) Newkirk Jackson Street
L.P.; (d) Newkirk JVF L.P.; (e) Newkirk Lando L.P.; (f) Newkirk
Lanmar L.P.; (g) Newkirk Marbax L.P.; (h) Newkirk Statmont L.P.; (i) Newkirk
Syrcar L.P.; (j) Newkirk Vegpow L.P.; (k) Newkirk Walando L.P.; and (l) Newkirk
Walmad L.P.

 

Mortgaged Property shall each Individual
Property is or hereafter becomes subject to a mortgage/deed  of trust granted to the Administrative Agent
hereunder.

 

Net Lease Partnerships shall mean, singly and
collectively, the NMLP Partnerships (whether now existing, or hereafter formed
as permitted hereunder), the Other Partnerships, the Subsidiary Limited
Partnerships, and the Partially Owned Limited Partnerships being the owners,
land estate holders, or ground lessors of the Individual Properties.

 

Net Proceeds shall mean the gross proceeds received
from any insurance recovery or condemnation award relating to any casualty or
taking of any asset  less the aggregate
of (i) obligations due to the holders of Mortgage Debt thereon, including,
without limitation, any prepayment penalties or fees, and (ii) all
reasonable costs and expenses incurred in the collection of such amounts,
including, but not limited to, reasonable attorney’s fees, payable to
third-parties who are not a NMLP Subsidiary, a Newkirk Group Entity or an
Affiliate thereof.

 

Net Refinancing Proceeds shall mean the gross
proceeds received from the closing of the financing or refinancing of a
specified asset (with the exception of any proceeds of Permitted T/I Debt) less
the aggregate of (i) obligations due to the holders of Mortgage Debt
thereon, including, without limitation, any prepayment penalties or fees, and  (ii) reasonable closing costs payable to
third-parties who are not a NMLP Subsidiary, a Newkirk Group Entity or an
Affiliate thereof.

 

Net Sales Proceeds shall mean the gross sale
proceeds received from the closing of the sale of a specified asset less the
aggregate of (i) obligations due to the holders of Mortgage Debt thereon,
including, without limitation, any prepayment penalties or fees, (ii) usual
closing adjustments, and (iii) reasonable closing costs payable to
third-parties who are not a NMLP Subsidiary, a Newkirk Group Entity or an
Affiliate thereof.

 

Newkirk Group Entity (Entities) shall mean (a) prior
to the completion of the IPO, Apollo Real Estate Investment Fund III, L.P., a
Delaware limited partnership, Vornado Realty Trust, a Maryland real estate
investment trust, and Michael Ashner and Peter Braverman, being senior
executives of Winthrop Financial Associates, A Limited Partnership, together
with any Affiliates of each of such Persons (other than NMLP or any NMLP
Subsidiary), and (b) after the completion of the IPO, the REIT.

 

Newkirk Indemnification as defined in Section 3.1.23.

 

Newkirk Indemnitor as defined in Section 1.5.2.

 

Newkirk Loans shall mean, jointly and
severally, the Administrator LLC Loan, the Leyden Note and the Dautec Note.

 

A-16

 

NMLP as defined in the Preamble hereto.

 

NMLP Accounts as defined in Section 7.1.14.

 

NMLP Collateral as defined in Section 3.1.

 

NMLP Commitment shall mean, with respect to
each Lender, the amount set forth on Exhibit I hereto as the amount
of such Lender’s commitment to make advances to NMLP, as may be amended from
time to time by the Administrative Agent as provided in Article 13 upon
any assignment by a Lender permitted under this Loan Agreement.

 

NMLP Consents as defined in Section 5.1.4(a).

 

NMLP Depository Account Pledge and Security Agreement
as defined in Section 3.1.3(b).

 

NMLP Depository Accounts as defined in Section 7.1.14.

 

NMLP GP as defined in Section 1.2.1.

 

NMLP Guarantor as defined in Section 1.5.1.

 

NMLP Guaranty as defined in Section 3.1.24.

 

NMLP’s Investments shall mean the aggregate of
all of NMLP’s and NMLP Subsidiaries’ investments and other assets, on a
consolidated basis (including but not limited to those investments known as the
controlled LP’s and the equity share of the non-controlled LP’s), all as
disclosed by NMLP to the Administrative Agent.

 

NMLP Loan as defined in Section 1.3.

 

NMLP Loan Advance as defined in Section 5.1.

 

NMLP Loan Documents as defined in Section 3.2.

 

NMLP Loan Party and NMLP Loan Parties shall
mean, singly and collectively, NMLP, the NMLP GP, each NMLP Subsidiary which is
a party to any NMLP Loan Document, the NMLP Guarantor, each Newkirk Group
Entity which is a party to any NMLP Loan Document, and any Subsidiary and
Affiliate of any of the foregoing which is also a party to any NMLP Loan
Document.

 

NMLP Mandatory Prepayment Event as defined in Section 2.3.8(b).

 

NMLP Mandatory Principal Prepayments as
defined in Section 2.3.8(b).

 

NMLP Note as defined in Section 3.2.

 

NMLP Obligations shall mean all indebtedness,
obligations and liabilities of NMLP to the Administrative Agent and/or any
Lender existing on the date of this Agreement or arising thereafter, direct or
indirect, joint or several, absolute or contingent, matured or unmatured,
liquidated or unliquidated, secured or unsecured, arising by contract, assignment,
operation of

 

A-17

 

law or otherwise, arising or incurred under this Agreement, the NMLP
Note, the NMLP T-Two Guaranty or any of the other NMLP Loan Documents,
including, without limitation, under any Interest Rate Agreement with the Administrative
Agent with respect to the NMLP Loan.

 

NMLP Partnerships shall mean, singly and
collectively, from time to time, those limited partnerships which are
wholly-owned and controlled by NMLP, including, without limitation, those
listed on Exhibit M.

 

NMLP Partnership GPs shall mean, singly and
collectively, from time to time, those limited liability companies or
corporations which are wholly-owned and controlled by NMLP and which are the
general partners for each of the NMLP Partnerships,  respectively.

 

NMLP Payment Direction Letters as defined in Section 7.1.15(e),
including, without limitation, the Paying Agent Agreements.

 

NMLP Permitted Debt as defined in Section 8.1.4.

 

NMLP Permitted Investments as defined in Section 8.1.19.

 

NMLP Permitted Liens as defined in Section 8.1.2.

 

NMLP Pre IPO Payment Amount shall mean, for
each Principal Payment Date, an amount equal to 50% of Excess Cash Flow for the
prior fiscal quarter, less the T-Two Pre IPO Payment Amount.

 

NMLP Post IPO Payment Amount (i) Prior to
the Initial Maturity Date, $1,875,000.00, less the T-Two Post IPO Payment, and (ii) if
the Loan is extended to the First Extended Maturity Date or the Second Extended
Maturity Date, $2,500,000.00, less the T-Two Post IPO Payment.

 

NMLP Security Documents as defined in Section 3.2.

 

NMLP Securitized Mortgages shall mean such of
the Securitized Mortgages which secure a NMLP Securitized Note.

 

NMLP Securitized Notes shall mean such of the
Securitized Notes as to which the current payor is a NMLP Partnership, Other
Partnership, Subsidiary Limited Partnership, or Partially Owned Limited
Partnership.

 

NMLP Subsidiaries shall mean all of the
Subsidiaries of NMLP, and all Subsidiaries of 
Subsidiaries of NMLP, including, without limitation, the following (but
specifically not including any Other Partnerships, and any Partially Owned
Limited Partnership):

 

A.            NMLP
Partnerships;

 

B             NMLP
Partnership GPs;

 

C.            Newkirk GP Holding
LLC, a Delaware limited liability company (being the parent of the NMLP
Partnership GP’s);

 

A-18

 

D.            Newkirk GP LLC, a
Delaware limited liability company, together with all Subsidiaries of Newkirk
GP LLC;

 

E.             Newkirk Finco LLC,
a Delaware limited liability company;

 

F.             Newkirk Capital
LLC, a Delaware limited liability company;

 

G.            Newkirk Asset
Management LLC, a Delaware limited liability company (being a Subsidiary of
Newkirk Capital LLC);

 

H.            NK-Remainder
Interest LLC, a Delaware limited liability company;

 

I.              NK-Leyden GP LLC,
a Delaware limited liability company;

 

J.             NK-Leyden Loan,
L.P., a Delaware limited partnership,

 

K.            NK-Dautec Loan,
L.P., a Delaware limited partnership;

 

L.             NK-Dautec GP LLC, a
Delaware limited liability company;

 

M.           BMD Realty LLC, a
Delaware limited liability company;

 

N.            NK First Loan E Cert
LLC, a Delaware limited liability company;

 

O.            NK First Loan F Cert
LLC, a Delaware limited liability company;

 

P.             NK First Loan G
Cert LLC, a Delaware limited liability company;

 

Q.            Newkirk MLP Unit
LLC;

 

R.            MLP Manager Corp., a
Delaware corporation;

 

S.             Alsey Associates
L.P., a Delaware limited partnership;

 

T.            Jeral Associates
L.P., a Delaware limited partnership; and

 

U.            Jermor Associates
L.P., a Delaware limited partnership.

 

NMLP T-Two Guaranty shall mean the unlimited
guaranty dated as of the Closing Date executed by NMLP guarantying all
obligations and liabilities of T-Two to the Administrative Agent and the
Lenders under the T-Two Loan Documents.

 

Non-Wholly Owned Securitized Note shall mean
such of the Securitized Notes as to which the current payor is not a NMLP
Partnership.

 

Notes shall mean, collectively, the NMLP Note
and the T-Two Note.

 

Notice of Intention to Distribute an defined
in Section 9.2.1.

 

Obligations shall mean, collectively, the NMLP
Obligations and the T-Two Obligations.

 

A-19

 

Officer’s Certificate shall mean a certificate
delivered to the Administrative Agent by a Borrower, a Subsidiary of a
Borrower, or a Guarantor, as the case may be, respectively, which is signed by
an authorized officer thereof (or an authorized officer of the direct or
indirect managing general partner or managing member, as applicable, of
such  Borrower, such Borrower Subsidiary,
or such Guarantor, if and as applicable).

 

One-Month LIBOR Rate  as defined in Section 2.3.3.

 

Other Partnerships shall mean, from time to
time, partnerships or other entities in which NMLP has a direct or indirect
ownership interest, but which entities do not constitute NMLP Subsidiaries,
including, without limitation, the partnerships detailed in Exhibit L.

 

Other Second Mortgage Debt shall mean, from
time to time, any obligations of a Net Lease Partnership secured by a junior
mortgage or deed of trust on one or more Individual Properties, as of the
Closing Date as set forth in Schedule 6.1.18(b)(ii); provided,
however, the Securitized Notes shall not be included within the
definition of Other Second Mortgage Debt.

 

Ownership Interest Agreements shall mean all
of the agreements establishing any Remainder Ground Lease Option or Ground Lease
Extension Option in favor of a Net Lease Partnership in an Individual Property,
including the Ground Leases.

 

Partially Owned Limited Partnerships shall
mean and refer to Linwood Avenue Limited Partnership (as to which a 55% limited
partnership interest and 100% general partnership interest is owned by Newkirk
Calcraf L.P.) and LCB Limited Partnership (as to which a 53% limited
partnership interest and 100% general partnership interest is owned by Newkirk
Segair L.P.)

 

Paying Agent shall mean Midland Loan Services, Inc.,
together with any other agent or replacement agent under a Paying Agent
Agreement.

 

Paying Agent Agreements shall mean those
agreements entered into with the Paying Agent for each Net Lease Partnership
obligated on a Securitized Note pursuant to which the Paying Agent agreed to
collect payments due on the Securitized Notes and make disbursements on behalf
of the Grantor Trust.

 

Payment Direction Letters shall mean,
collectively, the NMLP Payment Direction Letters and the T-Two Payment Direction
Letters.

 

PBGC shall mean the Pension Benefit Guaranty
Corporation established pursuant to Section 4002 of ERISA, or any
successor thereto.

 

Permitted Additional Debt shall mean Debt incurred
by a NMLP Subsidiary which is non-recourse to the Borrower with respect to an
Individual Property, provided that, after giving effect to the incurrence of
such Debt, the Borrower shall remain in compliance with the Financial Covenants.

 

Permitted Distributions shall mean, so long as
(x) no Default or Event of Default exists and is continuing, or would be
created thereby, (y) NMLP is in compliance with the Financial Covenants and
will remain in compliance after the said Distribution, and (z) all payments
then due have been paid into the T/I Fund Account, subject to requirements set
forth in Section 9.2, hereof, (i) any Distributions by NMLP in
accordance with its Formation Documents, or (ii) at

 

A-20

 

any time after and during the continuance of any Event of Default, such
Distributions as are necessary for the REIT to maintain real estate investment
trust status (measured on a trailing twelve (12) month period basis), all of
the foregoing tested by the Administrative Agent on the Calculation Date with
results based upon the  results for the
most recent Calculation Period, such calculation and results to be as verified
by the Administrative Agent.

 

Permitted Leasing Costs as defined in Section 7.1.28(a).

 

Permitted Liens shall mean, collectively, NMLP
Permitted Liens and T-Two Permitted Liens.

 

Permitted Refinance as defined in Section 8.1.4(d).

 

Permitted Revolver shall mean an unsecured
revolving line of credit incurred simultaneous with or after the consummation
of the IPO, in amount not to exceed $50,000,000.00, to be obtained by NMLP to
finance working capital needs, which Permitted Revolver shall contain customary
terms, covenants and restrictions, with financial covenants no more restrictive
than the Financial Covenants, all as approved by the Administrative Agent, such
approval not to be unreasonably withheld.

 

Permitted T/I Debt shall mean additional
non-recourse first mortgage indebtedness incurred by NMLP Subsidiaries solely
to fund Permitted Leasing Costs under executed Leases, the amount of which
Permitted T/I Debt shall not exceed $50,000,000.00 incurred in the aggregate
during the term of the Loan.

 

Person shall mean any individual, corporation,
partnership, joint venture, estate, trust, unincorporated association or
limited liability company, any federal, state, county or municipal government
or any bureau, department or agency thereof and any fiduciary acting in such
capacity on behalf of any of the foregoing.

 

Plan shall mean any multiemployer or
single-employer plan as defined in Section 4001 of ERISA, which is
maintained or contributed to by (or to which there is an obligation to
contribute of) a Borrower or any Subsidiary of a Borrower or an ERISA
Affiliate, and each such plan for the five year period immediately following
the latest date on which such Person or an ERISA Affiliate maintained,
contributed to or had an obligation to contribute to such plan.

 

Prepayment Fee as defined in Section 2.3.9(a).

 

Prime Rate. 
That interest rate established from time to time by KeyBank National
Association as its prime rate, whether or not such rate is publicly announced;
the Prime Rate may not be the lowest interest rate charged by KeyBank National
Association for commercial or other extensions of credit.

 

Prime Rate Margin.  Fifty (50) basis points per annum.

 

Principal Payment Date as defined in Section 2.3.8(a)(i).

 

Ratings as defined in Section 5.1.18.

 

A-21

 

Reduction Condition shall mean either of (a) the
completion of the IPO, including the making of the IPO Payment, or (b) the
Consolidated Leverage Ratio shall, at the end of a Fiscal Quarter, be and shall
remain less than 50%.

 

Register as defined in Section 13.3.3.

 

Reimbursement Agreement shall mean that
certain Reimbursement Agreement of even date entered into between NMLP and
T-Two with respect to the NMLP T-Two Guaranty.

 

Reinvestment Account as defined in Section 2.3.8(d).

 

Reinvestment Funds as defined in Section 2.3.8(d).

 

REIT as defined in Section 7.1.31.

 

Rejectable Offer shall mean the rejectable
offer of any tenant pursuant to a Lease respecting any Individual Property to
purchase the respective Individual Property at a predetermined price, as and
when may be specifically provided in any such Lease respecting any Individual
Property.

 

Rejection Test as defined in Section 7.1.24(f).

 

Related Documents shall mean, singly and
collectively, the Formation Documents, the Call Option Agreement, each
Ownership Interest Agreement, the Amended and Restated Asset Management
Agreement, the Contract to Provide Asset Management Services, the
Securitization Documents, the Integrated Documents, the Payment Direction
Letters, the documents establishing and evidencing any Mortgage Debt, the
Reimbursement Agreement, and the documents establishing and evidencing each
Newkirk Loan.

 

Related Fund shall mean, with respect to a
Lender which is a fund that invests in loans, any other such fund managed by
the same investment advisor as such Lender or by an Affiliate of such Lender or
such advisor.

 

Remainder Ground Lease Options as defined in Section 3.1.26(a).

 

Remainder Ground Lease Option Schedule as
defined in Section 6.1.18(g).

 

Repair Work as defined in Section 14.1.

 

Reportable Event  shall mean an event described in Section 4043(b) of
ERISA with respect to a Plan other than those events as to which the 30-day
notice period is waived under subsection .13, .14, .16, .18, .19 or .20 of
PBGC Regulation Section 2615, or as otherwise now or hereafter defined in
ERISA.

 

Required Lenders.  As of any date, the Lenders holding greater
than fifty percent (50%) of the outstanding principal amount due under the
Notes on such date; and if no such principal is outstanding, the Lenders whose
aggregate Commitments constitute greater than fifty percent (50%) of the Total
Commitment.

 

Required T/I Amount as defined in Section 7.1.28(e).

 

A-22

 

Reserve Percentage:  For any LIBOR Rate Interest Period, that
percentage which is specified three (3) Business Days before the first day
of such LIBOR Rate Interest Period by the Board of Governors of the Federal
Reserve System (or any successor) or any other governmental or
quasi-governmental authority with jurisdiction over Lender for determining the
maximum reserve requirement (including, but not limited to, any marginal
reserve requirement) for Lender with respect to liabilities constituting of or
including (among other liabilities) Eurocurrency liabilities in an amount equal
to that portion of the Loan affected by such LIBOR Rate Interest Period and
with a maturity equal to such LIBOR Rate Interest Period.

 

Second Extended Maturity Date as defined in Section 2.2.

 

Second Extended Term as defined in Section 2.2.

 

Securitization Documents shall mean any and
all documentation executed and delivered relative to the securitization of the
so called contract rights relative to the Securitized Properties, including,
without limitation, the Grantor Trust Agreement, the Paying Agent Agreement,
the Securitized Notes, the Securitized Mortgages, and the Grantor Trust T-1 Certificate
and the Grantor Trust T-2 Certificate, as such have been amended as of the
Closing Date.

 

Securitized Mortgages shall mean the Liens on
the Securitized Properties which secure the Securitized Notes.

 

Securitized Notes shall mean any and all the
individual notes which from time to time are held by the Grantor Trust.

 

Securitized Note Schedule as defined in Section 6.2.15.

 

Securitized Property and Securitized
Properties shall mean from time to time each real estate property, together
with all improvements, fixtures, equipment, and personalty relating to such
property which secures any Securitized Note, with the Securitized Properties as
of the date hereof being listed on Exhibit O hereto.

 

Security Documents shall mean, collectively,
the NMLP Security Documents and the T-Two Security Documents.

 

Servicer presently Midland Loan Services, Inc.,
shall have the meaning provided in the Grantor Trust Agreement.

 

Shortfall Amount shall mean, with respect to
any sale, transfer, refinance or other disposition of a Securitized Property
which is owned by a NMLP Partnership which results in a discharge or release of
the applicable Securitized Mortgage on such Securitized Property, the excess
(if any) of (a) the aggregate Allocated Payment Amounts for such Securitized
Property(ies), over (b)  the aggregate of (i) all applicable T-Two
Mandatory Principal Prepayments received by the Administrative Agent under Section 2.3.8(c) with
respect to such Securitized Properties (including the payment made or to be
made as a result of the subject transaction), plus (ii) all NMLP Mandatory
Principal Prepayments received by the Administrative Agent with respect to any
Securitized Property which secures such Securitized Note  (excluding the payment made or to be made as
a result of the subject transaction).

 

A-23

 

Single-Purpose Entity shall mean, with respect
to a Person, that such Person has Formation Documents which contain generally
the following provisions (with such variations as required by the provisions of
the First Mortgage Debt), and has agreed to abide by such terms and conditions:

 

(a)           Such Person shall
not engage in any business or activity other than acquiring by merger the
assets and liabilities of the applicable Net Lease Partnership.

 

(b)           Such Person shall
not acquire or own any material assets other than (i) the real property
owned by the NMLP Partnership on the Closing Date, and (ii) such
incidental personal property as may be necessary for the operation of such real
property.

 

(c)           Such Person shall
not fail to preserve its existence as an entity duly organized, validly
existing and in good standing (if applicable) under the laws of the
jurisdiction of its organization or formation and under the applicable laws of
any state or states in which the ownership of its assets or the conduct of its
business requires such qualification.

 

(d)           Such Person shall
not incur any Debt, except as provided herein.

 

(e)           Such Person shall
not merge into or consolidate with any person or entity or dissolve, terminate
or liquidate in whole or in part, transfer or otherwise dispose of all or
substantially all of its assets or change its legal structure.

 

(f)            Such Person shall
not own any subsidiary or make any investment in any person or entity.

 

(g)           Such Person shall
not file or consent to the filing of any petition, either voluntary or
involuntary, to take advantage of any applicable insolvency, bankruptcy,
liquidation or reorganization statute, or make an assignment for the benefit of
creditors.

 

(h)           Such Person shall
agree to abide by the following covenants in its management and operation:

 

(i)            To
maintain its records, books of account and bank accounts separate and apart
from those of the NMLP Partnership GPs, any affiliates of the NMLP Partnership
GPs and any other Person;

 

(ii)           Not
to commingle assets with those of the NMLP Partnership GPs or any other Person;

 

(iii)          Not
to maintain its assets in such a manner that it will be costly or difficult to
segregate, ascertain or identify its individual assets from those of any other
Person;

 

(iv)          To
maintain separate financial statements and to file its own tax returns;

 

(v)           To
pay its own liabilities out of its own funds;

 

(vi)          To
observe all corporate, partnership or limited liability company formalities;

 

A-24

 

(vii)         To
maintain an arm’s-length relationship with its Affiliates;

 

(viii)        To
pay the salaries of its own employees and maintain a sufficient number of
employees in light of its contemplated business operations;

 

(ix)           Not
to guarantee or become obligated for the debts of any other entity or hold out
its credit as being available to satisfy the obligations of others, except as
provided for herein;

 

(x)            Not
to acquire obligations or securities of its partners, members or shareholders;

 

(xi)           To
allocate and charge fairly and reasonably any overhead for shared office space
or any common employee or overhead shared with affiliates;

 

(xii)          To
use separate stationery, invoices and checks;

 

(xiii)         Not
to pledge its assets for the benefit of any other entity or make any loans or
advances to any entity, including any NMLP Partnership GP or any affiliate
thereof, except as provided for herein;

 

(xiv)        To
hold itself out to the public as a legal entity separate and distinct from any
other Person and to conduct its business solely in its own name in order not (A) to
mislead others as to the identity with which such other Person is transacting
business, or (B) to suggest that such Person is responsible for the debts
of any third party (including the NMLP Partnership GPs or any affiliate thereof
or any other Person);

 

(xv)         To
correct any known misunderstanding regarding its separate identity; and

 

(xvi)        To
maintain adequate capital and cash on hand for the normal obligations
reasonably foreseeable in a business of its size and character and in light of
its contemplated business operations.

 

State shall mean the State or Commonwealth in
which the subject of such reference or any part thereof is located.

 

Statement as defined in Section 15.17.

 

Sublease shall mean any sublease entered into,
or assumed by, a lessee under a Master Lease relative to an Individual
Property, each of which Subleases has by operation of law merged into the
applicable Master Lease.

 

Subsidiary shall mean, with respect to any
Person, any corporation, association, limited liability company, partnership or
other business entity of which securities or other ownership interests
representing more than 50% of either (x) the beneficial ownership interest or
(y) ordinary voting power are, at the time as of which any determination is
being made, owned or controlled, directly or indirectly, by such Person.

 

A-25

 

Subsidiary Bankruptcy Test shall be deemed to
be triggered if the aggregate equity (as determined by the Administrative Agent
based upon then current valuations) in excess of all liens on the Individual
Properties of all NMLP Partnerships as to which any event set forth in
Subsections 10.1.1(h) or 10.1.2(h) has occurred and continues to
occur, is greater than $10,000,000.00, in each case assuming for purposes
hereof, that such an event has occurred for the subject NMLP Partnership.

 

Subsidiary Limited Partnership shall mean and
refer to Jeral Associates Limited Partnership, Jermor Associates Limited
Partnership, and Alsey Associates Limited Partnership (as to each of which a
99% limited partnership interest is owned by Newkirk Martall L.P.).

 

Syndication Agent shall mean Keybanc Capital
Markets.

 

T-Two as defined in the Preamble hereto.

 

T-Two Accounts as defined in Section 7.2.14.

 

T-Two Acquisition as defined in §7.1.32.

 

T-Two Cash Collateral Account as defined in Section 7.2.14.

 

T-Two Collateral as defined in Section 3.3.

 

T-Two Commitment shall mean, with respect to
each Lender, the amount set forth on Exhibit I hereto as the amount
of such Lender’s commitment to make advances to T-Two, as may be amended from
time to time by the Administrative Agent as provided in Article 13 upon
any assignment by a Lender permitted under this Loan Agreement.

 

T-Two Consents as defined in Section 5.2.4(a).

 

T-Two Depository Accounts as defined in Section 7.2.14.

 

T-Two Depository Account Pledge and Security Agreement
as defined in Section 3.3.4.

 

T-Two GP as defined in Section 1.2.2.

 

T-Two Guarantor as defined in Section 1.5.3.

 

T-Two Guaranty as defined in Section 3.3.5.

 

T-Two Loan as defined in Section 1.4.2.

 

T-Two Loan Advance as defined in Section 5.2.

 

T-Two Loan Documents as defined in Section 3.4.

 

T-Two Loan Party and T-Two Loan Parties
shall mean, singly and collectively, T-Two, the T-Two GP, each T-Two Guarantor,
each Newkirk Group Entity which is a party to any T-Two Loan Document, and any
Subsidiary and Affiliate of any of the foregoing which is also a party to any
T-Two Loan Document.

 

A-26

 

T-Two Mandatory Prepayment Event as defined in
Section 2.3.8(c).

 

T-Two Mandatory Principal Prepayments as
defined in Section 2.3.8(c).

 

T-Two NMLP Guaranty shall mean the unlimited
guaranty dated as of the Closing Date executed by T-Two guarantying all
obligations and liabilities of NMLP to the Administrative Agent and the Lenders
under the NMLP Loan Documents.

 

T-Two Note as defined in Section 3.4.

 

T-Two Obligations shall mean all indebtedness,
obligations and liabilities of T-Two to the Administrative Agent and/or any
Lender existing on the date of this Agreement or arising thereafter, direct or
indirect, joint or several, absolute or contingent, matured or unmatured,
liquidated or unliquidated, secured or unsecured, arising by contract,
assignment, operation of law or otherwise, arising or incurred under this
Agreement, the T-Two Note, the T-Two NMLP Guaranty or any of the other T-Two
Loan Documents, including, without limitation, under any Interest Rate  Agreement with the Administrative Agent with
respect to the T-Two Loan.

 

T-Two Payment Direction Letters as defined in Section 7.2.15(d),
including, without limitation, the Payment Administrative Agent Agreements.

 

T-Two Permitted Debt as defined in Section 8.2.4.

 

T-Two Permitted Investments as defined in Section 8.2.17.

 

T-Two Permitted Liens as defined in Section 8.2.2.

 

T-Two Post IPO Payment Amount as defined in Section 2.3.8(a)(ii)(1).

 

T-Two Pre IPO Payment Amount as defined in Section 2.3.8(a)(i)(1).

 

T-Two Security Documents as defined in Section 3.4.

 

T/I Fund Account as defined in Section 7.1.28(a).

 

Title Reports as defined in Section 5.1.11(a).

 

Total Commitment.  The sum of the Commitments of the Lenders, as
in effect from time to time.

 

Total NMLP Commitment.  The sum of the NMLP Commitments of the
Lenders, as in effect from time to time.

 

Total T-Two Commitment shall mean the sum of
the T-Two Commitments of the Lenders, as in effect from time to time.

 

Tustin shall mean Tustin Associates Limited
Partnership, a Delaware limited partnership, being one of the Other
Partnerships.

 

Tustin Loan shall mean the loan arrangement
between Tustin and NMLP in the original principal amount of $345,619.00, as
evidenced by the Tustin Loan Documents.

 

A-27

 

Tustin Loan Documents shall mean and refer to
a certain promissory note in the original principal amount of $345,619.00 dated
January 1, 2003 made by Tustin in favor of NMLP and a certain leasehold
mortgage dated January 1, 2003 given by Tustin to NMLP, and any and all
other documents executed in connection therewith, as same may be amended,
modified, supplemented, or replaced from time to time.

 

UCC or the Uniform Commercial Code
means the Uniform Commercial Code in effect in a State.

 

Unfunded Current Liability of any Plan means
the amount, if any, by which the actuarial present value of the accumulated
plan benefits under the Plan as of the close of its most recent plan year
exceeds the fair market value of the assets allocable thereto, each determined
in accordance with Statement of Financial Accounting Standards No. 35,
based upon the actuarial assumptions used by the Plan’s actuary in the most
recent annual valuation of the Plan.

 

United States and U.S. shall each mean
the United States of America.

 

Units shall mean units of limited partnership
interest in the Borrower.

 

Withholding Taxes as defined in Section 2.7.3(a).

 

A-28Exhibit 10.17

 

MASTER
PROMISSORY NOTE

 

	
  $477,759,445.00

  	
   

  	
  As of August 11,
  2005

  

 

1.                                       Promise
To Pay.

 

FOR VALUE RECEIVED, THE NEWKIRK MASTER LIMITED PARTNERSHIP, a Delaware
limited partnership having an address at c/o Winthrop Financial Associates,
Seven Bulfinch Place, Boston, Massachusetts 02114 (“NMLP”), promises to pay to the order of KEYBANK NATIONAL
ASSOCIATION, a national banking association having an address at 101 Federal
Street, Boston, Massachusetts 02110, as administrative agent (“Administrative Agent”) for a syndicate of lenders
(singly and collectively, the “Lenders”),
the principal sum of FOUR HUNDRED SEVENTY-SEVEN MILLION, SEVEN HUNDRED
FIFTY-NINE THOUSAND, FOUR HUNDRED FORTY-FIVE DOLLARS AND 00/100 ($477,759,445.00),
or so much thereof as may be advanced, with interest thereon, until such
principal sum shall be fully paid. 
Interest and principal shall be payable in installments as provided in
the Loan Agreement (as defined below). 
The total principal sum, or the amount thereof outstanding, together
with any accrued but unpaid interest, shall be due and payable in full on August 11,
2008 (“Maturity Date”), which term
is further defined in, and is subject to acceleration, or extension for two (2) one
(1) year extensions (each an “Extended
Maturity Date”), in accordance with the Loan Agreement (as defined
below) pursuant to which this Note has been issued.

 

2.                                       Master
Loan Agreement.

 

This Note is issued pursuant to the terms, provisions and conditions of
an agreement captioned “Master Loan Agreement” (as amended, modified, or
supplemented from time to time, the “Loan
Agreement”) dated as of even date among (i) NMLP, (ii) T-Two
Partners, L.P., a Delaware limited partnership, (iii) the Lenders, (iv) the
Administrative Agent, and (v) Bank of America, N.A., as “Deposit Account
Co-Agent”, and evidences the NMLP Loan made pursuant thereto.  Capitalized terms used herein which are not
otherwise specifically defined shall have the same meaning herein as in the
Loan Agreement. The Lenders shall each be deemed to share a proportionate
interest in this Note in accordance with each Lender’s Commitment Percentage as
set forth in the Register maintained by the Administrative Agent in accordance
with the Loan Agreement.

 

3.                                       Acceleration;
Event of Default.

 

At the option of the holder, this Note and the indebtedness evidenced
hereby shall become immediately due and payable without further notice or
demand, and notwithstanding any prior waiver of any breach or default, or other
indulgence, upon the occurrence at any time of any one or more of the following
events, each of which shall be an “Event of Default” hereunder and under the
Loan Agreement and each other NMLP Loan Document: (i) an Event of Default
as defined in or as set forth in the Loan Agreement or any other NMLP Loan
Document, each as the same may from time to time hereafter be amended; or (ii) an
event which pursuant to any express

 

1

 

provision of the Loan Agreement, or of any other NMLP Loan Document,
gives the Administrative Agent the right to accelerate the NMLP Loan. Upon the
occurrence and during the continuance of an Event of Default, the Administrative
Agent shall have, in addition to any rights and remedies contained herein, any
and all rights and remedies set forth in the Loan Agreement.

 

4.                                       Certain
Waivers, Consents and Agreements.

 

Except as specifically provided otherwise in the Loan Agreement, each
and every party liable hereon or for the indebtedness evidenced hereby whether
as maker, endorser, guarantor, surety or otherwise hereby: (a) waives
presentment, demand, protest, suretyship defenses and defenses in the nature
thereof; (b) waives any defenses based upon and specifically assents to
any and all extensions and postponements of the time for payment, changes in
terms and conditions and all other indulgences and forbearances which may be
granted by the holder to any party now or hereafter liable hereunder or for the
indebtedness evidenced hereby; (c) agrees to any substitution, exchange,
release, surrender or other delivery of any security or collateral now or
hereafter held hereunder or in connection with the Loan Agreement, or any of
the other NMLP Loan Documents, and to the addition or release of any other
party or person primarily or secondarily liable; (d) agrees that if any
security or collateral given to secure this Note or the indebtedness evidenced
hereby or to secure any of the obligations set forth or referred to in the Loan
Agreement, or any of the other NMLP Loan Documents, shall be found to be
unenforceable in full or to any extent, or if the Administrative Agent or any
other party shall fail to duly perfect or protect such collateral, the same
shall not relieve or release any party liable hereon or thereon nor vitiate any
other security or collateral given for any obligations evidenced hereby or
thereby; (e) agrees to pay all reasonable costs and expenses incurred by the
Administrative Agent and Lenders or any other holder of this Note in connection
with the indebtedness evidenced hereby pursuant to the Loan Agreement,
including, without limitation, all reasonable attorneys’ fees and costs, for
the closing of the NMLP Loan, the collection of the indebtedness evidenced
hereby and the enforcement of rights and remedies hereunder or under the other
NMLP Loan Documents, whether or not suit is instituted; and (f) consents
to all of the terms and conditions contained in this Note, the Loan Agreement,
and all other instruments now or hereafter executed evidencing or governing all
or any portion of the security or collateral for this Note and for such Loan
Agreement, or any one or more of the other NMLP Loan Documents.

 

5.                                       Delay
Not A Bar.

 

No delay or omission on the part of the holder in exercising any right
hereunder or any right under any instrument or agreement now or hereafter
executed in connection herewith, or any agreement or instrument which is given
or may be given to secure the indebtedness evidenced hereby or by the Loan
Agreement, or any other agreement now or hereafter executed in connection
herewith or therewith shall operate as a waiver of any such right or of any
other right of such holder, nor shall any delay, omission or waiver on any one
occasion be deemed to be a bar to or waiver of the same or of any other right
on any future occasion.

 

2

 

6.                                       Partial
Invalidity.

 

The invalidity or unenforceability of any provision hereof, of the Loan
Agreement, of the other NMLP Loan Documents, or of any other instrument,
agreement or document now or hereafter executed in connection with the NMLP
Loan made pursuant hereto and thereto shall not impair or vitiate any other
provision of any of such instruments, agreements and documents, all of which
provisions shall be enforceable to the fullest extent now or hereafter
permitted by law.

 

7.                                       Compliance
With Usury Laws.

 

All agreements between NMLP, the Administrative Agent, and Lenders are
hereby expressly limited so that in no contingency or event whatsoever, whether
by reason of acceleration of maturity of the indebtedness evidenced hereby or
otherwise, shall the amount paid or agreed to be paid to the Administrative
Agent or Lenders for the use or the forbearance of the indebtedness evidenced
hereby exceed the maximum permissible under applicable law.  As used herein, the term “applicable law”
shall mean the law in effect as of the date hereof, provided, however,
that in the event there is a change in the law which results in a higher
permissible rate of interest, then this Note shall be governed by such new law
as of its effective date.  In this
regard, it is expressly agreed that it is the intent of NMLP, the Administrative
Agent and Lenders in the execution, delivery and acceptance of this Note to
contract in strict compliance with the laws of the Commonwealth of
Massachusetts from time to time in effect. 
If, under or from any circumstances whatsoever, fulfillment of any
provision hereof or of any of the NMLP Loan Documents or the NMLP Security
Documents at the time performance of such provision shall be due, shall involve
transcending the limit of validity prescribed by applicable law, then the
obligation to be fulfilled shall automatically be reduced to the limit of such
validity, and if under or from any circumstances whatsoever the Administrative Agent
or Lenders should ever receive as interest an amount which would exceed the
highest lawful rate, such amount which would be excessive interest shall be
applied to the reduction of the principal balance evidenced hereby without any
prepayment fees or charges and not to the payment of interest.  This provision shall control every other
provision of all agreements among NMLP, the Administrative Agent and Lenders.

 

8.                                       Use
of Proceeds.

 

All proceeds of the NMLP Loan shall be used solely for the purposes more
particularly provided for and limited by the Loan Agreement.

 

9.                                       Security.

 

This Note is secured by the NMLP Collateral as set forth in the Loan
Agreement.

 

3

 

10.                                 Notices.

 

Any notices given with respect to this Note shall be given in the
manner provided for in the Loan Agreement.

 

11.                                 Governing
Law and Consent to Jurisdiction.

 

11.1                           Substantial
Relationship.  It is understood and
agreed that all of the NMLP Loan Documents were negotiated, executed and delivered
in the Commonwealth of Massachusetts, which Commonwealth the parties agree has
a substantial relationship to the parties and to the underlying transactions
embodied by the NMLP Loan Documents.

 

11.2                           Place
of Delivery.  NMLP agrees to furnish
to the Administrative Agent at the Administrative Agent’s office in Boston,
Massachusetts all further instruments, certifications and documents to be
furnished hereunder.

 

11.3                           Governing
Law.  This Note and each of the other
NMLP Loan Documents shall in all respects be governed, construed, applied and
enforced in accordance with the internal laws of the Commonwealth of
Massachusetts without regard to principles of conflicts of law.

 

11.4                           Consent
to Jurisdiction.  NMLP hereby
consents to personal jurisdiction in any state or Federal court located within
the Commonwealth of Massachusetts.

 

12.                                 No
Oral Change.

 

This Note and the other NMLP Loan Documents may only be amended,
terminated, extended or otherwise modified by a writing signed by the party
against which enforcement is sought.  In
no event shall any oral agreements, promises, actions, inactions, knowledge,
course of conduct, course of dealing, or the like be effective to amend,
terminate, extend or otherwise modify this Note or any of the other NMLP Loan
Documents.

 

13.                                 Rights
of the Holder.

 

This Note and the rights and remedies provided for herein may be
enforced by the Administrative Agent or any subsequent holder hereof.  Wherever the context permits each reference
to the term “holder” herein shall mean and refer to the Administrative Agent or
the then holder of this Note.

 

14.                                 Survival.

 

This Note shall survive and continue in full force and effect beyond
and after the payment and satisfaction of the NMLP Obligations in the event
that the Administrative Agent or any Lender is required to disgorge or return
any payment or property received as a result of any laws pertaining to
preferences, fraudulent transfers or fraudulent conveyances but such survival
and continuation shall be limited to the amount of such disgorgement or return
and shall terminate upon payment thereof by NMLP.

 

4

 

IN WITNESS WHEREOF, NMLP has caused this Note to be duly executed as of
the date set forth above as a sealed instrument at Boston, Massachusetts.

 

	
  NMLP:

  	
  THE NEWKIRK MASTER LIMITED PARTNERSHIP,

  
	
   

  	
  A Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  MLP GP LLC, its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Newkirk MLP Corp., its Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael L. Ashner

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
						

 

S-1

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