Document:

Exhibit 10.1

 

 

AMENDED AND
RESTATED

CREDIT AGREEMENT

 

dated as of July 15,
2008

 

among

 

STANDARD PARKING
CORPORATION,

as the Company

 

THE VARIOUS
FINANCIAL INSTITUTIONS PARTY HERETO,

as Lenders,

 

BANK OF AMERICA,
N.A. as

Administrative Agent,

 

and

 

WELLS FARGO BANK,
N.A.,

as Syndication Agent

 

 

BANC OF AMERICA
SECURITIES LLC and

WELLS FARGO BANK, N.A.

as Joint Lead Arrangers

 

and

 

BANC OF AMERICA
SECURITIES LLC,

as Sole Book Manager

 

 

TABLE OF CONTENTS

 

	
  SECTION 1 

  	
  DEFINITIONS

  	
  1

  
	
  1.1

  	
  Definitions

  	
  1

  
	
  1.2

  	
  Other Interpretive Provisions

  	
  23

  
	
  SECTION 2 

  	
  COMMITMENTS OF THE LENDERS;
  BORROWING, CONVERSION AND LETTER OF CREDIT PROCEDURES

  	
  24

  
	
  2.1

  	
  Revolving Loans

  	
  24

  
	
  2.2

  	
  Borrowing Procedures

  	
  24

  
	
  2.3

  	
  Letters of Credit

  	
  26

  
	
   

  	
  2.3.1

  	
  Letter of Credit Commitment

  	
  26

  
	
   

  	
  2.3.2

  	
  Procedures

  	
  27

  
	
   

  	
  2.3.3

  	
  Drawings and Reimbursements;
  Funding of Participations

  	
  29

  
	
   

  	
  2.3.4

  	
  Repayment of Participations

  	
  31

  
	
   

  	
  2.3.5

  	
  Obligations Absolute

  	
  31

  
	
   

  	
  2.3.6

  	
  Role of Issuing Lender

  	
  32

  
	
   

  	
  2.3.7

  	
  Cash Collateral

  	
  33

  
	
   

  	
  2.3.8

  	
  Applicability of ISP

  	
  34

  
	
   

  	
  2.3.9

  	
  Conflict with Issuer Documents

  	
  34

  
	
   

  	
  2.3.10

  	
  Letters of Credit Issued for
  Subsidiaries

  	
  34

  
	
   

  	
  2.3.11

  	
  Letter of Credit Amounts

  	
  34

  
	
  2.4

  	
  Swing Line Facility

  	
  34

  
	
   

  	
  2.4.1

  	
  Swing Line Facility

  	
  34

  
	
   

  	
  2.4.2

  	
  Borrowing Procedures

  	
  35

  
	
   

  	
  2.4.3

  	
  Refinancing of Swing Line Loans

  	
  35

  
	
   

  	
  2.4.4

  	
  Repayment of Participations

  	
  37

  
	
   

  	
  2.4.5

  	
  Interest for Account of Swing Line
  Lender

  	
  37

  
	
   

  	
  2.4.6

  	
  Payments Directly to Swing Line
  Lender

  	
  37

  
	
  2.5

  	
  Commitments Several

  	
  37

  
	
  2.6

  	
  Certain Conditions

  	
  37

  
	
  SECTION 3 

  	
  EVIDENCING OF LOANS

  	
  38

  
	
  3.1

  	
  Notes

  	
  38

  
	
  3.2

  	
  Recordkeeping

  	
  38

  
	
  SECTION 4 

  	
  INTEREST

  	
  38

  
	
  4.1

  	
  Interest Rates

  	
  38

  
	
  4.2

  	
  Interest Payment Dates

  	
  39

  
	
  4.3

  	
  Setting and Notice of LIBOR Rates

  	
  39

  
	
  4.4

  	
  Computation of Interest

  	
  39

  
	
  SECTION 5 

  	
  FEES

  	
  40

  
	
  5.1

  	
  Non-Use Fee

  	
  40

  
	
  5.2

  	
  Letter of Credit Fees

  	
  40

  
	
  5.3

  	
  Administrative Agent’s Fees

  	
  41

  
	
  SECTION 6 

  	
  INCREASE, REDUCTION OR TERMINATION
  OF THE REVOLVING COMMITMENT; PREPAYMENTS

  	
  41

  
	
  6.1

  	
  Increase, Reduction or Termination of the Revolving Commitment

  	
  41

  
	
   

  	
  6.1.1

  	
  Increase of the Revolving
  Commitment

  	
  41

  
						

 

i

 

	
   

  	
  6.1.2

  	
  Voluntary Reduction or Termination
  of the Revolving Commitment

  	
  42

  
	
   

  	
  6.1.3

  	
  All Reductions of the Revolving
  Commitment

  	
  42

  
	
  6.2

  	
  Repayments

  	
  42

  
	
   

  	
  6.2.1

  	
  Voluntary Repayments

  	
  42

  
	
   

  	
  6.2.2

  	
  Mandatory Repayments

  	
  42

  
	
  6.3

  	
  Manner of Repayments

  	
  43

  
	
   

  	
  6.3.1

  	
  Partial Repayments

  	
  43

  
	
  6.4

  	
  Final Repayment

  	
  43

  
	
   

  	
  6.4.1

  	
  Revolving Loans

  	
  43

  
	
  SECTION 7 MAKING AND PRORATION OF PAYMENTS;
  SETOFF; TAXES

  	
  44

  
	
  7.1

  	
  Making of Payments

  	
  44

  
	
  7.2

  	
  Application of Certain Payments

  	
  44

  
	
  7.3

  	
  Due Date Extension

  	
  44

  
	
  7.4

  	
  Setoff

  	
  44

  
	
  7.5

  	
  Proration of Payments

  	
  45

  
	
  7.6

  	
  Taxes

  	
  45

  
	
  SECTION 8 INCREASED COSTS; SPECIAL
  PROVISIONS FOR LIBOR LOANS

  	
  47

  
	
  8.1

  	
  Increased Costs

  	
  47

  
	
  8.2

  	
  Basis for Determining Interest Rate Inadequate or Unfair

  	
  48

  
	
  8.3

  	
  Changes in Law Rendering LIBOR Loans Unlawful

  	
  48

  
	
  8.4

  	
  Funding Losses

  	
  49

  
	
  8.5

  	
  Right of Lenders to Fund through Other Offices

  	
  49

  
	
  8.6

  	
  Discretion of Lenders as to Manner of Funding

  	
  49

  
	
  8.7

  	
  Mitigation of Circumstances; Replacement of Lenders

  	
  49

  
	
  8.8

  	
  Conclusiveness of Statements; Survival of Provisions

  	
  50

  
	
  SECTION 9 REPRESENTATIONS AND WARRANTIES

  	
  51

  
	
  9.1

  	
  Organization

  	
  51

  
	
  9.2

  	
  Authorization; No Conflict

  	
  51

  
	
  9.3

  	
  Validity and Binding Nature

  	
  51

  
	
  9.4

  	
  Financial Condition

  	
  51

  
	
  9.5

  	
  No Material Adverse Change

  	
  52

  
	
  9.6

  	
  Litigation and Contingent Liabilities

  	
  52

  
	
  9.7

  	
  Ownership of Properties; Liens

  	
  52

  
	
  9.8

  	
  Equity Ownership; Subsidiaries

  	
  52

  
	
  9.9

  	
  Pension Plans

  	
  53

  
	
  9.10

  	
  Investment Company Act

  	
  53

  
	
  9.11

  	
  Regulation U

  	
  54

  
	
  9.12

  	
  Taxes

  	
  54

  
	
  9.13

  	
  Solvency, etc.

  	
  54

  
	
  9.14

  	
  Environmental Matters

  	
  54

  
	
  9.15

  	
  Insurance

  	
  55

  
	
  9.16

  	
  Real Property; Facility Leases and Facility Management Agreements

  	
  55

  
	
  9.17

  	
  Information

  	
  55

  
	
  9.18

  	
  Intellectual Property

  	
  56

  
	
  9.19

  	
  Burdensome Obligations

  	
  56

  
	
  9.20

  	
  Labor Matters

  	
  56

  
						

 

ii

 

	
  9.21

  	
  No Default

  	
  56

  
	
  9.22

  	
  Subordinated Debt

  	
  56

  
	
  SECTION 10 

  	
  AFFIRMATIVE COVENANTS

  	
  57

  
	
  10.1

  	
  Reports, Certificates and Other Information

  	
  57

  
	
   

  	
  10.1.1

  	
  Annual Report

  	
  57

  
	
   

  	
  10.1.2

  	
  Interim Reports

  	
  57

  
	
   

  	
  10.1.3

  	
  Compliance Certificates

  	
  57

  
	
   

  	
  10.1.4

  	
  Reports to the SEC and to
  Shareholders

  	
  58

  
	
   

  	
  10.1.5

  	
  Notice of Default, Litigation and
  ERISA Matters

  	
  58

  
	
   

  	
  10.1.6

  	
  Management Reports

  	
  59

  
	
   

  	
  10.1.7

  	
  Projections

  	
  59

  
	
   

  	
  10.1.8

  	
  Subordinated Debt Notices

  	
  59

  
	
   

  	
  10.1.9

  	
  Other Information

  	
  60

  
	
  10.2

  	
  Books, Records and Inspections

  	
  60

  
	
  10.3

  	
  Maintenance of Property; Insurance

  	
  61

  
	
  10.4

  	
  Compliance with Laws; Payment of Taxes and Liabilities

  	
  62

  
	
  10.5

  	
  Maintenance of Existence, etc.

  	
  62

  
	
  10.6

  	
  Use of Proceeds

  	
  63

  
	
  10.7

  	
  Employee Benefit Plans

  	
  63

  
	
  10.8

  	
  Environmental Matters

  	
  64

  
	
  10.9

  	
  Further Assurances

  	
  64

  
	
  SECTION 11 

  	
  NEGATIVE COVENANTS

  	
  65

  
	
  11.1

  	
  Debt

  	
  65

  
	
  11.2

  	
  Liens

  	
  66

  
	
  11.3

  	
  Restricted Payments

  	
  68

  
	
  11.4

  	
  Mergers, Consolidations, Sales

  	
  68

  
	
  11.5

  	
  Modification of Organizational Documents

  	
  70

  
	
  11.6

  	
  Transactions with Affiliates

  	
  70

  
	
  11.7

  	
  Unconditional Purchase Obligations

  	
  72

  
	
  11.8

  	
  Inconsistent Agreements

  	
  72

  
	
  11.9

  	
  Business Activities; Issuance of Equity

  	
  72

  
	
  11.10

  	
  Investments, Loans and Advances

  	
  72

  
	
  11.11

  	
  Restriction of Amendments to Certain Documents

  	
  74

  
	
  11.12

  	
  Fiscal Year

  	
  74

  
	
  11.13

  	
  Financial Covenants

  	
  74

  
	
   

  	
  11.13.1

  	
  Fixed Charge Coverage Ratio

  	
  74

  
	
   

  	
  11.13.2

  	
  Total Debt to EBITDA Ratio

  	
  74

  
	
  11.14

  	
  Repayment or Redemption of Debt; Cancellation of Debt

  	
  74

  
	
  11.15

  	
  Affiliate Amounts

  	
  75

  
	
  SECTION 12 

  	
  EFFECTIVENESS; CONDITIONS OF LENDING,
  ETC.

  	
  75

  
	
  12.1

  	
  Initial Credit Extension

  	
  75

  
	
   

  	
  12.1.1

  	
  Notes

  	
  76

  
	
   

  	
  12.1.2

  	
  Authorization Documents

  	
  76

  
	
   

  	
  12.1.3

  	
  Consents, etc.

  	
  76

  
	
   

  	
  12.1.4

  	
  Guaranty and Collateral Agreement

  	
  76

  
	
   

  	
  12.1.5

  	
  Perfection Certificate

  	
  76

  
					

 

iii

 

	
   

  	
  12.1.6

  	
  Opinions of Counsel

  	
  76

  
	
   

  	
  12.1.7

  	
  Insurance

  	
  77

  
	
   

  	
  12.1.8

  	
  Copies of Documents

  	
  77

  
	
   

  	
  12.1.9

  	
  Payment of Fees

  	
  77

  
	
   

  	
  12.1.10

  	
  Solvency Certificate

  	
  77

  
	
   

  	
  12.1.11

  	
  Pro Forma

  	
  77

  
	
   

  	
  12.1.12

  	
  Search Results; Lien Terminations

  	
  77

  
	
   

  	
  12.1.13

  	
  Filings, Registrations and
  Recordings

  	
  78

  
	
   

  	
  12.1.14

  	
  Closing Certificate, Consents and
  Permits

  	
  78

  
	
   

  	
  12.1.15

  	
  Other

  	
  78

  
	
  12.2

  	
  Conditions

  	
  78

  
	
   

  	
  12.2.1

  	
  Compliance with Warranties, No
  Default, etc.

  	
  78

  
	
   

  	
  12.2.2

  	
  Confirmatory Certificate

  	
  79

  
	
   

  	
  12.2.3

  	
  Real Estate Documents

  	
  79

  
	
  SECTION 13 

  	
  EVENTS OF DEFAULT AND THEIR EFFECT

  	
  80

  
	
  13.1

  	
  Events of Default

  	
  80

  
	
   

  	
  13.1.1

  	
  Non-Payment of the Loans, etc.

  	
  80

  
	
   

  	
  13.1.2

  	
  Non-Payment of Other Debt

  	
  80

  
	
   

  	
  13.1.3

  	
  Other Material Obligations

  	
  81

  
	
   

  	
  13.1.4

  	
  Bankruptcy, Insolvency, etc.

  	
  81

  
	
   

  	
  13.1.5

  	
  Non-Compliance with Loan Documents

  	
  81

  
	
   

  	
  13.1.6

  	
  Representations; Warranties

  	
  81

  
	
   

  	
  13.1.7

  	
  Pension Plans

  	
  82

  
	
   

  	
  13.1.8

  	
  Judgments

  	
  82

  
	
   

  	
  13.1.9

  	
  Invalidity of Collateral Documents,
  etc.

  	
  82

  
	
   

  	
  13.1.10

  	
  Invalidity of Subordination
  Provisions, etc.

  	
  82

  
	
   

  	
  13.1.11

  	
  Change of Control

  	
  83

  
	
   

  	
  13.1.12

  	
  Material Adverse Effect

  	
  83

  
	
  13.2

  	
  Effect of Event of Default

  	
  83

  
	
  SECTION 14 

  	
  THE AGENT

  	
  83

  
	
  14.1

  	
  Appointment and Authorization

  	
  83

  
	
  14.2

  	
  Issuing Lender, Bank of America and Wells

  	
  84

  
	
  14.3

  	
  Delegation of Duties

  	
  84

  
	
  14.4

  	
  Exculpation of Agents

  	
  85

  
	
  14.5

  	
  Reliance by Agents

  	
  85

  
	
  14.6

  	
  Notice of Default

  	
  86

  
	
  14.7

  	
  Credit Decision

  	
  86

  
	
  14.8

  	
  Indemnification

  	
  87

  
	
  14.9

  	
  Agent in Individual Capacity

  	
  87

  
	
  14.10

  	
  Successor Agent

  	
  88

  
	
  14.11

  	
  Collateral Matters

  	
  88

  
	
  14.12

  	
  Administrative Agent May File Proofs of Claim

  	
  89

  
	
  14.13

  	
  Other Agents; Arrangers and Managers

  	
  90

  
	
  SECTION 15 

  	
  GENERAL

  	
  90

  
	
  15.1

  	
  Waiver; Amendments

  	
  90

  
	
  15.2

  	
  Confirmations

  	
  91

  
						

 

iv

 

	
  15.3

  	
  Notices

  	
  91

  
	
  15.4

  	
  Computations

  	
  91

  
	
  15.5

  	
  Costs, Expenses and Taxes

  	
  92

  
	
  15.6

  	
  Assignments; Participations

  	
  92

  
	
   

  	
  15.6.1

  	
  Assignments

  	
  92

  
	
   

  	
  15.6.2

  	
  Participations

  	
  93

  
	
  15.7

  	
  Register

  	
  94

  
	
  15.8

  	
  GOVERNING LAW

  	
  94

  
	
  15.9

  	
  Confidentiality

  	
  94

  
	
  15.10

  	
  Severability

  	
  95

  
	
  15.11

  	
  Nature of Remedies

  	
  95

  
	
  15.12

  	
  Entire Agreement

  	
  96

  
	
  15.13

  	
  Counterparts

  	
  96

  
	
  15.14

  	
  Successors and Assigns

  	
  96

  
	
  15.15

  	
  Captions

  	
  96

  
	
  15.16

  	
  Indemnification by the Company

  	
  96

  
	
  15.17

  	
  Nonliability of Lenders

  	
  97

  
	
  15.18

  	
  Forum Selection and Consent to Jurisdiction

  	
  98

  
	
  15.19

  	
  Waiver of Jury Trial

  	
  99

  
	
  15.20

  	
  No Advisory or Fiduciary Responsibility

  	
  99

  
	
  15.21

  	
  USA PATRIOT Act Notice

  	
  100

  

 

v

 

ANNEXES

 

	
  ANNEX A

  	
  Lenders and Pro Rata Shares

  
	
  ANNEX B

  	
  Addresses for Notices

  
	
   

  	
   

  
	
  SCHEDULES

  
	
   

  
	
  SCHEDULE 1.1

  	
  Existing Letters of Credit

  
	
  SCHEDULE 1.2

  	
  Non-Guarantor Joint Ventures

  
	
  SCHEDULE 9.6

  	
  Litigation and Contingent Liabilities

  
	
  SCHEDULE 9.8

  	
  Equity Ownership; Subsidiaries

  
	
  SCHEDULE 9.14

  	
  Underground Storage Tanks

  
	
  SCHEDULE 9.15

  	
  Insurance

  
	
  SCHEDULE 9.16

  	
  Real Property; Facility Leases and Facility
  Management Agreements

  
	
  SCHEDULE 9.20

  	
  Labor Matters

  
	
  SCHEDULE 11.1

  	
  Existing Debt

  
	
  SCHEDULE 11.2

  	
  Existing Liens

  
	
  SCHEDULE 11.10

  	
  Investments

  
	
  SCHEDULE 11.15

  	
  Management Fees

  
	
   

  	
   

  
	
  EXHIBITS

  
	
   

  
	
  EXHIBIT A

  	
  Form of Note

  
	
  EXHIBIT B

  	
  Form of Compliance Certificate

  
	
  EXHIBIT C

  	
  Form of Assignment Agreement

  
	
  EXHIBIT D

  	
  Form of Loan Notice

  

 

vi

 

AMENDED
AND RESTATED

CREDIT
AGREEMENT

 

THIS AMENDED AND
RESTATED CREDIT AGREEMENT dated as of July 15, 2008 (this “Agreement”)
is entered into among STANDARD PARKING CORPORATION (the “Company”), the
financial institutions that are or may from time to time become parties hereto
(the “Lenders”), which, unless the context indicates otherwise, shall
include BANK OF AMERICA, N.A. (in its individual capacity, “Bank of America”),
as a Lender, as an Issuing Lender and as Administrative Agent for the Lenders
and WELLS FARGO BANK, N.A. (in its individual capacity, “Wells”), as a
Lender, as an Issuing Lender and as Syndication Agent for the Lenders,  and amends and restates that certain Amended
and Restated Credit Agreement dated as of June 29, 2006 (as amended or otherwise
modified prior to the date hereof, the “Existing Credit Agreement”)
among the Company, each lender from time to time party thereto, Bank of America
as an issuer of any Existing Letters of Credit, as a lender, as paying agent
and as co-administrative agent, LaSalle Bank, N.A. as co-administrative agent
and as a lender and Wells as an issuer of any Existing Letters of Credit, as a
lender and as syndication agent.

 

The Lenders have
agreed to make available to the Company a revolving credit facility (which
includes letters of credit) upon the terms and conditions set forth herein.

 

In consideration
of the mutual agreements herein contained, the parties hereto agree as follows:

 

SECTION 1

 

DEFINITIONS

 

1.1          Definitions.

 

When used herein
the following terms shall have the following meanings:

 

Account Debtor is defined in the Guaranty and
Collateral Agreement.

 

Account or
Accounts is
defined in the UCC.

 

Acquired Debt means mortgage Debt or Debt with respect
to Capital Leases of a Person existing at the time such Person became a
Subsidiary or assumed by the Company or a Subsidiary of the Company pursuant to
an Acquisition permitted hereunder (and not created or incurred in connection
with or in anticipation of such Acquisition).

 

Acquisition means any transaction or series of
related transactions for the purpose of or resulting, directly or indirectly,
in (a) the acquisition of all or substantially all of the assets of a
Person, or of all or substantially all of any business or division of a Person,
(b) the acquisition of in excess of 50% of the Capital Securities of any
Person, or otherwise causing any Person to 

 

1

 

become a Subsidiary, or (c) the acquisition of another Person
pursuant to a merger or consolidation or any other combination with such Person
(other than a Person that is already a Subsidiary).

 

Adjusted
Off-Balance Sheet Liabilities of a Person means, Off-Balance Sheet Liabilities of
such Person and its Subsidiaries, excluding (i) all Facility Leases,
Ordinary Course Equipment Leases and Facility Management Agreements of such
Person’s and its Subsidiaries’ businesses, and (ii) payments required
pursuant to that certain Executive Parking Management Agreement dated as of May 1,
1998, together with the First Amendment thereto dated as of August 1,
1999, by and among the Company, D&E Parking, Inc., Edward B. Simmons
and Dale G. Stark.

 

Administrative
Agent means Bank
of America in its capacity as administrative agent for the Lenders hereunder
and any successors thereto in such capacity.

 

Affected Loan - see Section 8.3.

 

Affiliate of any Person means (a) any other
Person which, directly or indirectly, controls or is controlled by or is under
common control with such Person, (b) any “executive” officer (as defined
under the Exchange Act and the Regulations thereunder) or director of such
Person and (c) with respect to any Lender, any entity administered or
managed by such Lender or an Affiliate or investment advisor thereof and which
is engaged in making, purchasing, holding or otherwise investing in commercial
loans.  A Person shall be deemed to be “controlled
by” any other Person if such Person possesses, directly or indirectly, power to
vote 10% or more of the securities (on a fully diluted basis) having ordinary
voting power for the election of directors or managers or power to direct or
cause the direction of the management and policies of such Person whether by
contract or otherwise.  Unless expressly
stated otherwise herein, neither the Administrative Agent, the Collateral
Agent, nor any Lender shall be deemed an Affiliate of any Loan Party.

 

Agreement - see the Preamble.

 

Applicable Margin means, for any day, the rate per annum
set forth below opposite the level (the “Level”) then in effect, it being understood
that the Applicable Margin for (i) LIBOR Loans shall be the percentage set
forth under the column “LIBOR Margin”, (ii) Base Rate Loans shall be the
percentage set forth under the column “Base Rate Margin”, (iii) the
Non-Use Fee Rate shall be the percentage set forth under the column “Non-Use
Fee Rate” and (iv) the L/C Fee shall be the percentage set forth under the
column “L/C  Fee Rate”:

 

	
  Level

  	
   

  	
  Total Debt

  to EBITDA Ratio

  	
   

  	
  LIBOR

  Margin

  	
   

  	
  Base Rate

  Margin

  	
   

  	
  Non-Use

  Fee Rate

  	
   

  	
  L/C Fee

  Rate

  	
   

  
	
  I

  	
   

  	
  Greater than or equal to 4.0:1

  	
   

  	
  3.50

  	
  %

  	
  2.00

  	
  %

  	
  0.70

  	
  %

  	
  3.50

  	
  %

  
	
  II

  	
   

  	
  Greater than or equal to 3.5:1 but less than 4.0:1

  	
   

  	
  3.00

  	
  %

  	
  1.50

  	
  %

  	
  0.625

  	
  %

  	
  3.00

  	
  %

  
	
  III

  	
   

  	
  Greater than or equal to 3.0:1 but less than 3.5:1

  	
   

  	
  2.50

  	
  %

  	
  1.00

  	
  %

  	
  0.50

  	
  %

  	
  2.50

  	
  %

  
	
  IV

  	
   

  	
  Greater than or equal to 2.5:1 but less than 3.0:1

  	
   

  	
  2.25

  	
  %

  	
  0.75

  	
  %

  	
  0.45

  	
  %

  	
  2.25

  	
  %

  
	
  V

  	
   

  	
  Less than 2.5:1

  	
   

  	
  2.00

  	
  %

  	
  0.50

  	
  %

  	
  0.40

  	
  %

  	
  2.00

  	
  %

  

 

2

 

The LIBOR Margin, the Base Rate Margin, the Non-Use Fee Rate and the
L/C Fee Rate shall be adjusted, to the extent applicable, on the fifth (5th)
Business Day after the Company provides the annual and quarterly financial
statements and other information pursuant to Section 10.1.1 or 10.1.2,
as applicable, and the related Compliance Certificate, pursuant to Section 10.1.3.  Notwithstanding anything contained in this
paragraph to the contrary, (a) during the period from the Closing Date
through the fifth (5th) Business Day after the Company provides
quarterly financial statements and other information pursuant to Section 10.1.2
and the related Compliance Certificate pursuant to Section 10.1.3 for the
four fiscal quarter period ending June 30, 2008, the LIBOR Margin, the
Base Rate Margin, the Non Use Fee Rate and the L/C Fee Rate shall be based upon
Level IV, (b) if the Company fails to deliver such financial statements
and Compliance Certificate in accordance with the provisions of Section 10.1.1,
10.1.2 and 10.1.3, the LIBOR Margin, the Base Rate Margin, the
Non-Use Fee Rate and the L/C Fee Rate shall be based upon Level I above
beginning on the date such financial statements and Compliance Certificate were
required to be delivered until the fifth (5th)  Business
Day after such financial statements and Compliance Certificate are actually
delivered, whereupon the Applicable Margin shall be determined by the then
current Level, and (c) no reduction to any Applicable Margin shall become
effective at any time when an Event of Default has occurred and is continuing.

 

Asset Disposition - see Section 11.4(b).

 

Assignee - see Section 15.6.1.

 

Assignment
Agreement - see Section 15.6.1.

 

Attorney Costs means, with respect to any Person, all
reasonable fees and charges of any external counsel to such Person, all
reasonable disbursements of such counsel and all court costs and similar legal
expenses.

 

Availability
Period means,
with respect to the Commitments, the period from and including the Closing Date
to the earliest of (a) the Termination Date, (b) the date of
termination of the Revolving Commitment pursuant to Section 6.1.2,
and (c) the date of termination of the commitment of each Lender to make
Loans and of the obligation of the Issuing Lenders to make L/C Credit
Extensions pursuant to Section 13.2.

 

Bank of America – see the Preamble.

 

3

 

Bank Product
Agreements means
those certain cash management service agreements entered into from time to time
between any Loan Party and a Lender or its Affiliates in connection with any of
the Bank Products.

 

Bank Product
Obligations means
all obligations, liabilities, contingent reimbursement obligations, fees, and
expenses owing by the Loan Parties to any Lender or its Affiliates pursuant to
or evidenced by the Bank Product Agreements and irrespective of whether for the
payment of money, whether direct or indirect, absolute or contingent, due or to
become due, now existing or hereafter arising, and including all such amounts
that a Loan Party is obligated to reimburse to the Administrative Agent or any
Lender as a result of the Administrative Agent or such Lender purchasing
participations or executing indemnities or reimbursement obligations with
respect to the Bank Products provided to the Loan Parties pursuant to the Bank
Product Agreements.

 

Bank Products means any service or facility extended
to any Loan Party by any Lender or its Affiliates including:  (a) credit cards, (b) credit card
processing services, (c) debit cards, (d) purchase cards, (e) ACH
Transactions, (f) cash management, including controlled disbursement,
accounts or services, or (g) Hedging Agreements.

 

BAS means Banc of America Securities LLC, in
its capacity as joint lead arranger and sole book manager.

 

Base Rate means for any day a fluctuating rate per
annum equal to the higher of (a) the Federal Funds Rate plus 0.50% and (b) the
rate of interest in effect for such day as publicly announced from time to time
by Bank of America as its “prime rate.” 
The “prime rate” is a rate set by Bank of America based upon various
factors including Bank of America’s costs and desired return, general economic
conditions and other factors, and is used as a reference point for pricing some
loans, which may be priced at, above, or below such announced rate.  Any change in the “prime rate” announced by
Bank of America shall take effect at the opening of business on the day
specified in the public announcement of such change.

 

Base Rate Loan means any Loan which bears interest at
or by reference to the Base Rate.

 

Base Rate Margin - see the definition of Applicable
Margin.

 

Borrowing means a borrowing consisting of
simultaneous Loans of the same Type and, in the case of LIBOR Loans, having the
same Interest Period made by each of the Lenders pursuant to Section 2.01.

 

BSA - see Section 10.4.

 

Business Day means any day on which Bank of America
is open for commercial banking business in Chicago, Illinois and, in the case
of a Business Day which relates to a LIBOR Loan, on which dealings are carried
on in the London interbank eurodollar market.

 

Capital
Expenditures
means all expenditures which, in accordance with GAAP, would be required to be
capitalized and shown on the consolidated balance sheet of the Company, 

 

4

 

including expenditures in respect of Capital Leases, but excluding (a) expenditures
made in connection with the replacement, substitution or restoration of assets
to the extent financed (i) from insurance proceeds (or other similar
recoveries) paid on account of the loss of or damage to the assets being
replaced or restored or (ii) with awards of compensation arising from the
taking by eminent domain or condemnation of the assets being replaced and (b) Permitted
Acquisitions.

 

Capital Lease means, with respect to any Person, any
lease of (or other agreement conveying the right to use) any real or personal
property by such Person that, in accordance with GAAP, is accounted for as a
capital lease on the balance sheet of such Person.

 

Capital Securities means, with respect to any Person, all
shares, interests, participations or other equivalents (however designated,
whether voting or non-voting) of such Person’s capital, whether now outstanding
or issued or acquired after the Closing Date, including common shares,
preferred shares, membership interests in a limited liability company, limited
or general partnership interests in a partnership, interests in a Trust,
interests in other unincorporated organizations or any other equivalent of such
ownership interest.

 

Cash Collateralize means to deliver cash collateral to the
Collateral Agent, to be held as cash collateral for outstanding Letters of
Credit, the Existing Letters of Credit and other L/C Obligations pursuant to
documentation reasonably satisfactory to the Collateral Agent and the Issuing
Lenders.  Derivatives of such term have
corresponding meanings.

 

Cash Equivalent
Investment means,
at any time, (a) any evidence of Debt, maturing not more than one year
after such time, issued or guaranteed by the United States Government or any
agency thereof, (b) commercial paper, maturing not more than one year from
the date of issue, or corporate demand notes, in each case (unless issued by a
Lender or its holding company) rated at least A-l by Standard & Poor’s
Ratings Services, a division of The McGraw-Hill Companies, Inc. or P-l by
Moody’s Investors Service, Inc., (c) any certificate of deposit, time
deposit or banker’s acceptance, maturing not more than one year after such
time, or any overnight Federal Funds transaction that is issued or sold by any
Lender or its holding company (or by a commercial banking institution that is a
member of the Federal Reserve System and has a combined capital and surplus and
undivided profits of not less than $500,000,000), (d) any repurchase
agreement entered into with any Lender (or commercial banking institution of
the nature referred to in clause (c)) which (i) is secured by a
fully perfected security interest in any obligation of the type described in
any of clauses (a) through (c) above and (ii) has
a market value at the time such repurchase agreement is entered into of not
less than 100% of the repurchase obligation of such Lender (or other commercial
banking institution) thereunder and (e) money market accounts or mutual
funds which invest exclusively in assets satisfying the foregoing requirements,
and (f) other short term liquid investments approved in writing by the
Administrative Agent.

 

Change of Control means the occurrence of any of the
following: (i) the sale, lease, transfer, conveyance or other disposition
(other than in a transaction described in clause (vi) below), in one or a
series of related transactions, of all or substantially all of the assets of
the Company and its Subsidiaries, taken as a whole, to any “person” (as such
term is used in subsection 13(d)(3) of the Exchange Act), (ii) the
adoption of a plan relating to the liquidation or 

 

5

 

dissolution of the Company, (iii) the consummation of any
transaction (including, without limitation, any merger or consolidation) the
result of which is that any “person” (as defined above), other than John V.
Holten and/or his Related Parties, becomes the “beneficial owner” (as such term
is defined in Rule 13d-3 and Rule 13d-5 under the Exchange Act,
except that a person shall be deemed to have “beneficial ownership” of all
securities that such person has the right to acquire, whether such right is
currently exercisable or is exercisable only upon the occurrence of a
subsequent condition; provided, however, that a bona fide pledgee shall not be
deemed to be the beneficial owner of such pledged securities until the pledgee
has taken all formal steps necessary which are required to declare a default
and determines that the power to vote or to direct the vote or to dispose or to
direct the disposition of such pledged securities will be exercised), directly
or indirectly, of more than 50% of the Voting Stock of the Company (measured by
voting power rather than number of shares), (iv) the first day on which a
majority of the members of the Board of Directors of the Company are not
Continuing Directors, (v) the occurrence of any change of control or
similar provision in any other Subordinated Debt, the Series D Preferred
Stock (during such time as any Series D Preferred Stock remains
outstanding) or any other preferred Capital Stock of the Company, or (vi) the
Company consolidates with, or merges with or into, any Person or sells,
assigns, conveys, transfers, leases or otherwise disposes of all or
substantially all of its assets to any Person, or any Person consolidates with,
or merges with or into, the Company, in any such event pursuant to a
transaction in which more than thirty percent (30%) of the outstanding Voting
Stock of the Company is converted into or exchanged for cash, securities or
other property.

 

Closing Date – see Section 12.1.

 

Code means the Internal Revenue Code of 1986.

 

Collateral Access
Agreement means
an agreement in form and substance reasonably satisfactory to the Collateral
Agent pursuant to which a mortgagee or lessor of real property on which
collateral is stored or otherwise located, or a warehouseman, processor or
other bailee of Inventory or other property owned by any Loan Party,
acknowledges the Liens of the Collateral Agent and waives any Liens held by
such Person on such property, and, in the case of any such agreement with a
mortgagee or lessor, permits the Collateral Agent reasonable access to and use
of such real property following the occurrence and during the continuance of an
Event of Default to assemble, complete and sell any collateral stored or
otherwise located thereon.

 

Collateral Agent means Bank of America in its capacity as
collateral agent for the Lenders under the Loan Documents and any successor
thereto in such capacity.

 

Collateral
Documents means,
collectively, the Guaranty and Collateral Agreement, each Mortgage, each
Collateral Access Agreement, each Perfection Certificate and any other
agreement or instrument pursuant to which the Company, any Subsidiary or any
other Person grants or purports to grant collateral to the Collateral Agent for
the benefit of the Lenders or otherwise relates to such collateral.

 

Commitment means, as to any Lender, such Lender’s
commitment to make Loans, and participate in Letters of Credit and Existing
Letters of Credit, under this Agreement. 
The initial 

 

6

 

amount of each Lender’s commitment to make Loans and participate in
Letters of Credit and Existing Letters of Credit is set forth on Annex A,
as it may be amended, restated, modified or supplemented and in effect from
time to time.

 

Company - 
see the Preamble.

 

Compliance
Certificate means
a Compliance Certificate in substantially the form of Exhibit B.

 

Computation Period means each period of four consecutive
Fiscal Quarters ending on the last day of a Fiscal Quarter.

 

Consolidated Net
Income means,
with respect to the Company and its Subsidiaries for any period, the net income
(or loss) of the Company and its Subsidiaries for such period, determined in
accordance with GAAP.

 

Contingent
Liability means,
with respect to any Person, each obligation and liability of such Person and
all such obligations and liabilities of such Person incurred pursuant to any
agreement, undertaking or arrangement by which such Person:  (a) guarantees, endorses or otherwise
becomes or is contingently liable upon (by direct or indirect agreement,
contingent or otherwise, to provide funds for payment, to supply funds to, or
otherwise to invest in, a debtor, or otherwise to assure a creditor against
loss) the indebtedness, dividend, obligation or other liability of any other
Person in any manner (other than by endorsement of instruments in the course of
collection), including any indebtedness, dividend or other obligation which may
be issued or incurred at some future time; (b) guarantees the payment of
dividends or other distributions upon the Capital Securities of any other
Person; (c) undertakes or agrees (whether contingently or otherwise):  (i) to purchase, repurchase, or
otherwise acquire any indebtedness, obligation or liability of any other Person
or any property or assets constituting security therefor, (ii) to advance
or provide funds for the payment or discharge of any indebtedness, obligation
or liability of any other Person (whether in the form of loans, advances, stock
purchases, capital contributions or otherwise), or to maintain solvency,
assets, level of income, working capital or other financial condition of any
other Person, or (iii) to make payment to any other Person other than for
value received; (d) agrees to lease property or to purchase securities,
property or services from another Person with the purpose or intent of assuring
any owner of indebtedness or obligations of such other Person of the ability of
such other Person to make payment of such indebtedness or obligations; (e) to
induce the issuance of, or in connection with the issuance of, any letter of
credit for the benefit of such other Person; or (f) undertakes or agrees
otherwise to assure a creditor against loss; provided, however, for
purposes of calculating compliance with Section 11.13, Contingent
Liabilities shall exclude indorsements of instruments for deposit or collection
in the ordinary course of business and all Off-Balance Sheet Liabilities of
such Person, except for the Adjusted Off-Balance Sheet Liabilities.  The amount of any Contingent Liability shall
(subject to any limitation set forth herein) be deemed to be the outstanding
principal amount (or maximum permitted principal amount, if larger) of the
indebtedness, obligation or other liability guaranteed or supported thereby.

 

7

 

Continuing
Directors means,
as of any date of determination, any member of the Board of Directors of the
Company who (i) was a member of such Board of Directors on the Closing
Date or (ii) was nominated for election or elected to such Board of
Directors with the approval of (a) a majority of the Continuing Directors
who were members of such Board at the time of such nomination or election, or (b) John
V. Holten and/or his Related Parties as holder of a majority of the Voting
Stock of the Company prior to any other Change of Control.

 

Controlled Group means all members of a controlled group
of corporations, all members of a controlled group of trades or businesses
(whether or not incorporated) under common control and all members of an
affiliated service group which, together with the Company or any of its
Subsidiaries, are treated as a single employer under Section 414 of the
Code or Section 4001 of ERISA.

 

Debt of any Person means, without
duplication, (a) all indebtedness of such Person, for borrowed money,
whether or not evidenced by bonds, debentures, notes or similar instruments, (b) all
obligations of such Person as lessee under Capital Leases which have been or
should be recorded as liabilities on a balance sheet of such Person in
accordance with GAAP, (c) all obligations of such Person to pay the
deferred purchase price of property or services (excluding trade accounts
payable in the ordinary course of business), (d) all indebtedness secured
by a Lien on the property of such Person, whether or not such indebtedness
shall have been assumed by such Person; provided that if such Person has not
assumed or otherwise become liable for such indebtedness, such indebtedness
shall be measured at the fair market value of such property securing such
indebtedness at the time of determination, (e) all obligations, contingent
or otherwise, with respect to the face amount of all letters of credit (whether
or not drawn), bankers’ acceptances and similar obligations issued for the
account of such Person (including the Letters of Credit and the Existing
Letters of Credit), (f) all Hedging Obligations of such Person, (g) all
Contingent Liabilities of such Person, (h) any liability of such Person
for Earnouts, (i) Off-Balance Sheet Liabilities of such Person, (j) all
Debt of any partnership of which such Person is a general partner, and (k) all
Disqualified Stock of such Person (provided that other Capital Securities that
do not constitute Disqualified Stock shall not constitute Debt, regardless of
any changes in GAAP).  Notwithstanding
the foregoing, Debt shall not include advances to the Company from customers in
connection with Facility Leases and Facility Management Agreements of the
Company in the ordinary course of business.

 

Defaulting Lender means any Lender that (a) has
failed to fund any portion of the Loans, participations in L/C Obligations or
participations in Swing Line Loans required to be funded by it hereunder within
one Business Day of the date required to be funded by it hereunder, (b) has
otherwise failed to pay over to the Administrative Agent or any other Lender
any other amount required to be paid by it hereunder within one Business Day of
the date when due, unless the subject of a good faith dispute, or (c) has
been deemed insolvent or become the subject of a bankruptcy or insolvency
proceeding.

 

Designated
Proceeds - see Section 6.2.2(a).

 

Disqualified Stock means any class of Capital Security
that, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable), or upon the 

 

8

 

happening of any event, matures or is mandatorily redeemable, pursuant
to a sinking fund obligation or otherwise, or redeemable at the option of the
holder thereof, in whole or in part, or otherwise has any distributions or
other payments which are mandatory or otherwise required at any time on or
prior to the date that is one year after the Termination Date, provided
that any payment that is required solely due to a customary change of control
provision not more restrictive than the Change of Control default in this
Agreement shall not cause such class of Capital Security to be deemed Disqualified
Stock.

 

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

 

Domestic
Subsidiary means
each present and future Subsidiary of the Company which is not a Foreign
Subsidiary.

 

Earnouts means any payment which may be owing by any
Person in connection with any Permitted Acquisition, which payment is
contingent upon the earnings or other financial performance of the assets or
stock being acquired pursuant to such Permitted Acquisition.

 

EBITDA means, for any Computation Period, the
sum of (A) Consolidated Net Income for such Computation Period, excluding,
to the extent reflected in determining such Consolidated Net Income:  (i) the income of any Person accrued
prior to the date it becomes a Subsidiary of the Company or is merged into or
consolidated with the Company or any of its Subsidiaries or that Person’s
assets are acquired by the Company or any of its Subsidiaries, (ii) the
proceeds of any insurance policy, (iii) gains (but not losses) from the
sale, exchange, transfer or other disposition of property or assets not in the
ordinary course of business of the Company and its Subsidiaries, and related
tax effects in accordance with GAAP, (iv) any other extraordinary or
non-recurring gains or other gains not from continuing operations of the
Company or its Subsidiaries, and related tax effects in accordance with GAAP, (v) the
income of any Person (including without limitation any Subsidiary or Joint
Venture, but excluding any Wholly Owned Subsidiary) in which any Person other
than the Company or any of its Subsidiaries has a joint interest or partnership
interest or other ownership interest, to the extent that the declaration or
payment of dividends or similar distributions by that Subsidiary or Joint
Venture is not at the time permitted by operation of the terms of its charter
or of any agreement, instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to that Subsidiary or Joint Venture, except
to the extent of the amount of dividends or other distributions that are
actually paid in cash to the Company during such period, (vi) extraordinary
non-cash losses and non-recurring non-cash charges, (vii) income taxes, (viii) minority
interests, (ix) interest income net of Interest Expense, as defined in
accordance with GAAP, (x) depreciation and amortization expense, (xi) any
other extraordinary or non-recurring amounts or other amounts received by the
Company or any of its Subsidiaries from, or in respect of, any disposition or
termination of any Facility Lease or Facility Management Agreement of the
Company or its Subsidiaries, provided that, any such amount arising from a
single transaction shall only be excluded from Consolidated Net Income if it
equals or exceeds $250,000, (xii) costs and expenses incurred in connection
with this Agreement and the transactions contemplated hereby, (xiii) any
non-cash gains or losses under any Hedging Obligation, (xiv) any non-cash
compensation expenses (including expenses related to the Company’s restricted
stock grants under its long-term incentive plan) in an aggregate amount not to
exceed $3,000,000 during such Computation Period and (xv) any cash 

 

9

 

or non-cash losses or charges related to Hurricane Katrina plus (B) EBITDA,
as calculated herein, of any Person related to any Permitted Acquisition
consummated during such Computation Period, calculated, upon the Administrative
Agent’s reasonable consent, as if such Permitted Acquisition had occurred on
the first day of the relevant Computation Period.

 

Environmental
Claims means all
claims, however asserted, by any governmental, regulatory or judicial authority
or other Person alleging potential liability or responsibility for violation of
any Environmental Law, or for release or injury to the environment.

 

Environmental Laws means all present or future federal,
state or local laws, statutes, common law duties, rules, regulations,
ordinances and codes, together with all administrative or judicial orders,
consent agreements, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any governmental authority, in each case
relating to any matter arising out of or relating to public health and safety,
or pollution or protection of the environment or workplace, including any of
the foregoing relating to the presence, use, production, generation, handling,
transport, treatment, storage, disposal, distribution, discharge, emission,
release, threatened release, control or cleanup of any Hazardous Substance.

 

ERISA means the Employee Retirement Income
Security Act of 1974.

 

Event of Default means any of the events described in Section 13.1.

 

Exchange Act means the Securities Exchange Act of
1934, as amended.

 

Excluded Taxes means taxes based upon, or measured by,
the Lender’s or Administrative Agent’s (or a branch of the Lender’s or
Administrative Agent’s) overall net income, overall net receipts, or overall
net profits (including franchise taxes imposed in lieu of such taxes).

 

Existing Credit
Agreement — see
the Preamble.

 

Existing Letter of
Credit means any
letter of credit described on Schedule 1.1, as it may be amended or
modified from time to time, issued by any Issuing Lender prior to the Closing
Date which has not expired or been drawn in full and reimbursed as of the
Closing Date.  For the avoidance of
doubt, any Existing Letter of Credit issued by LaSalle Bank, N.A. shall be
deemed to be issued by Bank of America, as successor to the interests of
LaSalle Bank, N.A.

 

Facility Leases means agreements for the lease by the
Company or any of its Subsidiaries or Joint Ventures of real estate utilized as
a vehicle parking facility and/or for ancillary parking and transportation
services.

 

Facility
Management Agreement
means any agreement (other than the Facility Leases), for the provision by the
Company or any of its Subsidiaries or Joint Ventures of services for the
management or operation of a vehicle parking facility and/or ancillary parking
and transportation services, including without limitation any such agreement
designated as a management agreement, parking enforcement agreement, operating
agreement or license agreement.

 

10

 

Federal
Funds Rate means,
for any day, the rate per annum equal to the weighted average of the rates on
overnight federal funds transactions with members of the Federal Reserve System
arranged by federal funds brokers on such day, as published by the Federal
Reserve Bank of New York on the Business Day next succeeding such day; provided
that (a) if such day is not a Business Day, the Federal Funds Rate for
such day shall be such rate on such transactions on the next preceding Business
Day as so published on the next succeeding Business Day, and (b) if no
such rate is so published on such next succeeding Business Day, the Federal
Funds Rate for such day shall be the average rate (rounded upward, if
necessary, to a whole multiple of 1/100 of 1%) charged to Bank of America on
such day on such transactions as determined by the Administrative Agent.

 

Fee
Letter means the
fee letter dated the Closing Date between the Company, Bank of America and BAS.

 

Fiscal
Quarter means a
fiscal quarter of a Fiscal Year.

 

Fiscal
Year means the
fiscal year of the Company and its Subsidiaries, which period shall be the
12-month period ending on December 31 of each year.  References to a Fiscal Year with a number
corresponding to any calendar year (e.g., “Fiscal Year 2007”) refer to
the Fiscal Year ending on December 31 of such calendar year.

 

Fixed
Charge Coverage Ratio means, for any Computation Period, the ratio of (a) the total for
such period of EBITDA minus the sum of income taxes paid or payable in
cash by the Loan Parties and all Unfinanced Capital Expenditures to (b) the
sum for such Computation Period of (i) cash Interest Expense net of any
cash interest income plus (ii) required payments of principal of
Funded Debt (excluding the Revolving Loans).

 

Foreign
Subsidiary means any
present or future Subsidiary of the Company incorporated or formed in any
jurisdiction other than any State or other political subdivision of the United
States of America.

 

FRB means the Board of Governors of the
Federal Reserve System or any successor thereto.

 

Funded
Debt means, as to
any Person, all Debt of such Person that matures more than one year from the
date of its creation (or is renewable or extendible, at the option of such
Person, to a date more than one year from such date).

 

GAAP means generally accepted accounting
principles set forth from time to time in the opinions and pronouncements of
the Accounting Principles Board and the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board (or agencies with similar functions of comparable stature and
authority within the U.S. accounting profession) and the Securities and
Exchange Commission, which are applicable to the circumstances as of the date
of determination.

 

11

 

Guarantor means each present and future Domestic
Subsidiary of the Company (other than H&T Investment Group, Inc., an
Ohio corporation and S&J Parking Company, an Illinois corporation) and
each  present and future Joint Venture of
the Company (other than any present or future Joint Venture of the Company
which is prohibited by its organizational documents from becoming a Guarantor,
and which shall be identified on Schedule 1.2 attached hereto), or any
other Person executing a Guaranty and Collateral Agreement at any time.

 

Guaranty
and Collateral Agreement means the Guaranty and Collateral Agreement dated as of the date
hereof executed and delivered by the Company and each existing, new or future
Guarantor, together with any joinders thereto and any other guaranty and
collateral agreement executed by the Company and each existing, new or future
Guarantor, in each case in form and substance satisfactory to the Collateral
Agent.

 

Hazardous
Substances means (a) any
petroleum or petroleum products, radioactive materials, asbestos in any form
that is or could become friable, urea formaldehyde foam insulation, dielectric
fluid containing levels of polychlorinated biphenyls, radon gas and mold; (b) any
chemicals, materials, pollutant or substances defined as or included in the
definition of “hazardous substances”, “hazardous waste”, “hazardous materials”,
“extremely hazardous substances”, “restricted hazardous waste”, “toxic
substances”, “toxic pollutants”, “contaminants”, “pollutants” or words of
similar import, under any applicable Environmental Law; and (c) any other
chemical, material or substance, the exposure to, or release of which is
prohibited, limited or regulated by any governmental authority or for which any
duty or standard of care is imposed pursuant to, any Environmental Law.

 

Hedging
Agreement means
any interest rate, currency or commodity swap agreement, cap agreement or
collar agreement, and any other agreement or arrangement designed to protect a
Person against fluctuations in interest rates, currency exchange rates or
commodity prices.

 

Hedging
Obligation means,
with respect to any Person, any liability of such Person under any Hedging
Agreement.  The amount of any Person’s
obligation in respect of any Hedging Obligation shall be deemed to be the
incremental obligation that would be reflected in the financial statements of
such Person in accordance with GAAP.

 

Honor
Date – see Section 2.3.3(a).

 

Indemnified
Liabilities - see
Section 15.16.

 

Interest
Expense means for
any period the consolidated interest expense of the Company and its
Subsidiaries for such period (including all imputed interest on Capital
Leases).

 

Interest
Period means, as
to any LIBOR Loan, the period commencing on the date such Loan is borrowed or
continued as, or converted into, a LIBOR Loan and ending on the date one, two,
three or six months thereafter as selected by the Company in its Loan Notice; provided
that:

 

(a)           if
any Interest Period would otherwise end on a day that is not a Business Day,
such Interest Period shall be extended to the following Business Day unless the

 

12

 

result of such extension would be to carry such
Interest Period into another calendar month, in which event such Interest
Period shall end on the preceding Business Day;

 

(b)           any
Interest Period that begins on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period
shall end on the last Business Day of the calendar month at the end of such
Interest Period; and

 

(c)           the
Company may not select any Interest Period for a Revolving Loan which would
extend beyond the scheduled Termination Date.

 

Inventory is defined in the Guaranty and
Collateral Agreement.

 

Investment means, with respect to any Person, any
investment in another Person, whether by acquisition of any debt or Capital
Security, by making any loan or advance, by becoming obligated with respect to
a Contingent Liability in respect of obligations of such other Person (other
than travel and similar advances to employees in the ordinary course of
business) or by making an Acquisition.

 

ISP means, with respect to any Letter of
Credit, the “International Standby Practices 1998” published by the Institute
of International Banking Law & Practice (or such later version thereof
as may be in effect at the time of issuance).

 

Issuer
Documents means
with respect to any Letter of Credit or Existing Letter of Credit, the L/C
Application, and any other document, agreement and instrument entered into by
the applicable Issuing Lender, Bank of America or Wells, as applicable and the
Company (or any Subsidiary) or in favor such Issuing Lender, Bank of America or
Wells, as applicable and relating to any such Letter of Credit or Existing
Letter of Credit.

 

Issuing
Lender means Bank
of America, in its capacity as an issuer of Letters of Credit hereunder, or any
Affiliate of Bank of America that may from time to time issue Letters of
Credit, Wells, in its capacity as an issuer of Letters of Credit and any other
Lender in its capacity as issuer of Letters of Credit who has been selected by
the Company and who has agreed to act as an Issuing Lender hereunder in
accordance with its terms and their successors and assigns in such capacity.

 

Joint
Venture means any
corporation, limited or general partnership, limited liability company,
association, trust or other business entity of which the Company or one or more
of its Subsidiaries owns beneficially at least 25% but less than 100% of the
Capital Securities of such Person.

 

L/C
Advance means,
with respect to each Lender, such Lender’s funding of its participation in any
L/C Borrowing in accordance with its Pro Rata Share.

 

L/C
Application
means, with respect to any request for the issuance of a Letter of Credit, a
letter of credit application in the form being used by the applicable Issuing
Lender at the time of such request for the type of letter of credit requested.

 

13

 

L/C
Borrowing means
an extension of credit resulting from a drawing under any Letter of Credit
which has not been reimbursed on the date when made or refinanced as a
Borrowing of Revolving Loans.

 

L/C
Credit Extension
means, with respect to any Letter of Credit, the issuance thereof or extension
of the expiry date thereof, or the increase of the amount thereof.

 

L/C
Fee Rate - see
the definition of Applicable Margin.

 

L/C
Obligations
means, as at any date of determination, without duplication, the aggregate
amount available to be drawn under all outstanding Letters of Credit and
Existing Letters of Credit plus the aggregate of all Unreimbursed
Amounts, including all L/C Borrowings. 
For purposes of computing the amount available to be drawn under any
Letter of Credit or any Existing Letter of Credit, the amount of such Letter of
Credit or Existing Letter of Credit shall be determined in accordance with Section 2.3.11.  For all
purposes of this Agreement, if on any date of determination a Letter of Credit
or Existing Letter of Credit has expired by its terms but any amount may still
be drawn thereunder by reason of the operation of Rule 3.14 of the ISP,
such Letter of Credit or Existing Letter of Credit shall be deemed to be “outstanding”
in the amount so remaining available to be drawn.

 

Lender - see the Preamble.  References to the “Lenders” shall include any
Issuing Lender; for purposes of clarification only, to the extent that Bank of
America (or any other Issuing Lender) may have any rights or obligations in
addition to those of the other Lenders due to its status as an Issuing Lender,
its status as such will be specifically referenced.  In addition to the foregoing, for the purpose
of identifying the Persons entitled to share in the Collateral and the proceeds
thereof under, and in accordance with the provisions of, this Agreement and the
Collateral Documents, the term “Lender” shall include Affiliates of a Lender
providing a Bank Product.

 

Lender
Party - see Section 15.16.

 

Letter
of Credit means
any standby letter of credit issued hereunder.

 

Letter
of Credit Expiration Date means the day that is seven days prior to the Termination Date (or, if
such day is not a Business Day, the next preceding Business Day).

 

Letter
of Credit Sublimit
means an amount equal to the lesser of (a) the Revolving Commitment and (b) $50,000,000.  The Letter of Credit Sublimit is part of, and
not in addition to, the Revolving Commitment.

 

LIBOR
Base Rate means,
for any Interest Period with respect to a LIBOR Loan, the rate per annum equal
to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as
published by Reuters (or other commercially available source providing
quotations of BBA LIBOR as designated by the Administrative Agent from time to
time) at approximately 11:00 a.m., London time, two Business Days prior to
the commencement of such Interest Period, for Dollar deposits

 

14

 

(for delivery on the first day of such Interest
Period) with a term equivalent to such Interest Period.  If such rate is not available at such time
for any reason, then the “LIBOR Rate” for such Interest Period shall be the
rate per annum determined by the Administrative Agent to be the rate at which
deposits in Dollars for delivery on the first day of such Interest Period in
same day funds in the approximate amount of the LIBOR Loan being made,
continued or converted by Bank of America and with a term equivalent to such
Interest Period would be offered by Bank of America’s London Branch to major
banks in the London interbank eurodollar market at their request at
approximately 11:00 a.m. (London time) two Business Days prior to the
commencement of such Interest Period.

 

LIBOR
Loan means any
Loan which bears interest at a rate determined by reference to the LIBOR Rate.

 

LIBOR
Margin -  see the definition of Applicable Margin.

 

LIBOR
Office means with
respect to any Lender the office or offices of such Lender which shall be
making or maintaining the LIBOR Loans of such Lender hereunder.  A LIBOR Office of any Lender may be, at the
option of such Lender, either a domestic or foreign office.

 

LIBOR
Rate means for
any Interest Period with respect to any LIBOR Loan, a rate per annum determined
by the Administrative Agent to be equal to the quotient obtained by dividing (a) the
LIBOR Base Rate for such LIBOR Loan for such Interest Period by (b) one
minus the LIBOR Reserve Percentage for such LIBOR Loan for such Interest
Period.

 

LIBOR
Reserve Percentage
means, for any day during any Interest Period, the reserve percentage (expressed
as a decimal, carried out to five decimal places) in effect on such day,
whether or not applicable to any Lender, under regulations issued from time to
time by the FRB for determining the maximum reserve requirement (including any
emergency, supplemental or other marginal reserve requirement) with respect to
Eurocurrency funding (currently referred to as “Eurocurrency liabilities”).  The LIBOR Rate for each outstanding LIBOR
Loan shall be adjusted automatically as of the effective date of any change in
the LIBOR Reserve Percentage.

 

Lien means, with respect to any Person, any
interest granted by such Person in any real or personal property, asset or
other right owned or being purchased or acquired by such Person (including an
interest in respect of a Capital Lease) which secures payment or performance of
any obligation and shall include any mortgage, lien, encumbrance, title
retention lien, charge or other security interest of any kind, whether arising
by contract, as a matter of law, by judicial process or otherwise.

 

Loan
Documents means
this Agreement, the Notes, the Letters of Credit, the Existing Letters of
Credit, the Issuer Documents, the Fee Letter, the Collateral Documents, any
Subordination Agreements and all documents, instruments and agreements delivered
in connection with the foregoing.

 

15

 

Loan
Notice means a
notice of (a) a Borrowing of Loans, (b) a conversion of Loans from
one Type to the other, or (c) a continuation of LIBOR Loans, in each case
pursuant to Section 2.2(a), which, if in writing, shall be
substantially in the form of Exhibit D.

 

Loan
Party means the
Company and each Subsidiary.

 

Loan
or Loans means,
as the context may require, Revolving Loans, and/or Swing Line Loans.

 

Mandatory
Repayment Event –
see Section 6.2.2(a).

 

Margin
Stock means any “margin
stock” as defined in Regulation U.

 

Material
Adverse Effect
means (i) a material adverse effect on the property, business, operations,
financial condition, liabilities, prospects or capitalization of the Company
and its Subsidiaries, taken as a whole, (ii) a material adverse effect on
the ability of the Loan Parties to perform their collective obligations under
the Loan Documents taken as a whole, or (iii) a material adverse effect on
the rights and remedies of the Administrative Agent, the Collateral Agent, the
Issuing Lenders or the Lenders under the Loan Documents.

 

Mortgage means a mortgage, deed of trust,
leasehold mortgage or similar instrument granting the Collateral Agent a Lien
on real property of any Loan Party.

 

Multiemployer
Pension Plan
means a multiemployer plan, as defined in Section 4001(a)(3) of
ERISA, to which the Company or any other member of the Controlled Group may
have any liability.

 

Net
Capital Expenditures
shall mean Capital Expenditures, exclusive of (i) any such Capital
Expenditures financed on a non-recourse basis (i.e., on customary non-recourse
terms and with recourse solely to the asset being financed with such
non-recourse debt) by third parties which are not Affiliates of the Company,
and (ii) Capital Expenditures which are incurred to complete a Permitted
Acquisition.

 

Net
Cash Proceeds
means:

 

(a)           with
respect to any Asset Disposition, the aggregate cash proceeds (including cash
proceeds received pursuant to policies of insurance or by way of deferred
payment of principal pursuant to a note, installment receivable or otherwise,
but only as and when received) received by any Loan Party pursuant to such
Asset Disposition net of (i) the direct costs relating to such sale,
transfer or other disposition (including sales commissions and legal,
accounting and investment banking fees), (ii) taxes paid or reasonably
estimated by the Company to be payable as a result thereof (after taking into
account any available tax credits or deductions and any tax sharing
arrangements) and (iii) amounts required to be applied to the repayment of
any Debt secured by a Lien on the asset subject to such Asset Disposition
(other than the Loans);

 

16

 

(b)           with
respect to any issuance of Capital Securities, the aggregate cash proceeds
received by any Loan Party pursuant to such issuance, net of the direct costs
relating to such issuance (including sales and underwriters’ commissions and
legal, accounting and investment banking fees); and

 

(c)           with
respect to any issuance of Debt, the aggregate cash proceeds received by any
Loan Party pursuant to such issuance, net of the direct costs of such issuance
(including up-front, underwriters’ and placement fees, closing and commitment
fees, and legal, accounting and investment banking fees).

 

Non-Consenting
Lender – see Section 8.7(b).

 

Non-U.S.
Participant – see
Section 7.6(d).

 

Non-Use
Fee Rate – see
the definition of Applicable Margin.

 

Note means a promissory note substantially in
the form of Exhibit A.

 

Obligations means all obligations (monetary
(including any interest, fees and charges that accrue after the commencement by
or against the Company, any Loan Party or any Guarantor of any proceeding under
any bankruptcy or insolvency law naming such Person as the debtor in such
proceeding, regardless of whether such interest, fees and charges are allowed
claims in such proceeding) or otherwise) of the Company and each Guarantor
under this Agreement and any other Loan Document including Attorney Costs and
any reimbursement obligations of the Company and each Guarantor in respect of
Letters of Credit, Existing Letters of Credit and surety bonds, all Hedging
Obligations permitted hereunder which are owed to any Lender or its Affiliate,
and all Bank Products Obligations, all in each case howsoever created, arising
or evidenced, whether direct or indirect, absolute or contingent, now or
hereafter existing, or due or to become due.

 

OFAC - see Section 10.4.

 

Off-Balance
Sheet Liabilities
of a Person means, without duplication, (a) Receivables Facility
Attributed Indebtedness and any repurchase obligation or liability of such
Person or any of its Subsidiaries with respect to Accounts or notes receivable
sold by such Person or any of its Subsidiaries (calculated to include the
unrecovered investment of purchasers or transferees of Accounts or any other
obligation of such Person or such transferor to purchasers/transferees of
interests in Accounts or notes receivable or the agent for such
purchasers/transferees), (b) any liability of such Person or any of its
Subsidiaries under any sale and leaseback transactions which do not create a
liability on the consolidated balance sheet of such Person, (c) any
liability of such Person or any of its Subsidiaries under any financing lease
or so-called “synthetic” lease transaction, or (d) any obligations of such
Person or any of its Subsidiaries arising with respect to any other transaction
which is the functional equivalent of or takes the place of borrowing but which
does not constitute a liability on the consolidated balance sheets of such
Person and its Subsidiaries.

 

17

 

Operating
Lease means any
lease of (or other agreement conveying the right to use) any real or personal
property by any Loan Party, as lessee, other than any Capital Lease.

 

Ordinary
Course Capital Lease
means a Capital Lease of computer systems, equipment or motor vehicles entered
into by the Company or its Subsidiaries or Joint Ventures in the ordinary
course of business in connection with performing its obligations under Facility
Management Agreements or Facility Leases.

 

Ordinary
Course Equipment Lease means an Operating Lease of computer systems, equipment or motor
vehicles entered into by the Company or its Subsidiaries or Joint Ventures in
the ordinary course of business in connection with performing its obligations
under Facility Management Agreements or Facility Leases.

 

Ordinary
Course Lease Termination means (i) the termination of an Ordinary Course Equipment Lease
or an Ordinary Course Capital Lease pursuant to either (a) the termination
of the related Facility Management Agreement or Facility Lease, or (b) a
material modification of the related Facility Management Agreement or Facility
Lease such that the items of equipment or motor vehicles which are leased under
such Ordinary Course Equipment Lease or Ordinary Course Capital Lease are no
longer needed or useful for the purposes of performance under such Facility
Management Agreement or Facility Lease by the Company or the applicable
Subsidiary, and (ii) termination of a Facility Lease or Facility
Management Agreement that is no longer needed or useful in the business
judgment of the Company.

 

Ordinary
Course Lease Termination Payments means payments of liquidated damages or accelerated
rentals or similar amounts which are paid under the terms of an Ordinary Course
Equipment Lease, Ordinary Course Capital Lease, Facility Management Agreement
or Facility Lease pursuant to an Ordinary Course Lease Termination thereof at
or prior to expiration of the then-applicable respective terms thereunder.

 

Outstanding
Amount means (i) with
respect to any Loans on any date, the aggregate outstanding principal amount thereof
after giving effect to any borrowings and prepayments or repayments of any
Loans occurring on such date; and (ii) with respect to any L/C Obligations
on any date, the amount of such L/C Obligations on such date after giving
effect to any L/C Credit Extension occurring on such date and any other changes
in the aggregate amount of the L/C Obligations as of such date, including as a
result of any reimbursements by the Company of Unreimbursed Amounts.

 

PBGC means the Pension Benefit Guaranty
Corporation and any entity succeeding to any or all of its functions under
ERISA.

 

Participant - see Section 15.6.2.

 

Pension
Plan means a “pension
plan”, as such term is defined in Section 3(2) of ERISA, which is
subject to Title IV of ERISA or the minimum funding standards of ERISA (other
than a Multiemployer Pension Plan), and as to which the Company or any member
of the Controlled Group may have any liability, including any liability by
reason of having been a substantial

 

18

 

employer within the meaning of Section 4063 of
ERISA at any time during the preceding five years, or by reason of being deemed
to be a contributing sponsor under Section 4069 of ERISA.

 

Perfection
Certificate means
a perfection certificate executed and delivered to the Collateral Agent by a
Loan Party.

 

Permitted
Acquisition means
an Acquisition by the Company or a Guarantor which meets the requirements set
forth in Section 11.4 of this Agreement.

 

Permitted
Lien means a Lien
expressly permitted hereunder pursuant to Section 11.2.

 

Person means any natural person, corporation,
partnership, trust, limited liability company, association, governmental
authority or unit, or any other entity, whether acting in an individual,
fiduciary or other capacity.

 

Principals means (i) John V. Holten, Holberg
Industries, Inc., a Delaware corporation, AP Holdings, Inc., a
Delaware corporation, Steamboat Industries LLC, a New York limited liability
company and Steamboat Industries N.V., a corporation organized pursuant to the
laws of The Netherlands Antilles, (ii) the Related Parties of all the
Persons described in the foregoing clause (i) and (c) the
Affiliates of all the Persons described in the foregoing clauses (i) and
(ii).

 

Pro
Rata Share means:

 

(a)           with
respect to a Lender’s obligation to make Revolving Loans, participate in
Letters of Credit and Existing Letters of Credit, reimburse the applicable
Issuing Lender and receive payments of principal, interest, fees, costs, and
expenses with respect thereto, (x) prior to the Revolving Commitment being
terminated or reduced to zero, the percentage obtained by dividing (i) such
Lender’s Commitment, by (ii) the aggregate Revolving Commitment of all
Lenders and (y) from and after the time the Revolving Commitment has been
terminated or reduced to zero, the percentage obtained by dividing (i) the
aggregate unpaid principal amount of such Lender’s Revolving Outstandings by (ii) the
aggregate unpaid principal amount of all Revolving Outstandings;

 

(b)           with
respect to all other matters as to a particular Lender, the percentage obtained
by dividing (i) such Lender’s Commitment by (ii) the aggregate amount
of Revolving Commitment of all Lenders; provided that in the event the
Commitments have been terminated or reduced to zero, Pro Rata Share shall be
the percentage obtained by dividing (A) the principal amount of such
Lender’s Revolving Outstandings by (B) the principal amount of all
outstanding Revolving Outstandings.

 

Receivables
Facility Attributed Indebtedness means the amount of obligations outstanding under a
receivables purchase facility on any date of determination that would be
characterized as principal if such facility were structured as a secured
lending transaction rather than as a purchase.

 

Regulation
D means Regulation
D of the FRB.

 

19

 

Regulation
U means
Regulation U of the FRB.

 

Related
Parties means,
with respect to any Person, such Person’s Affiliates and the partners,
directors, officers, employees, agents and advisors of such Person and of such
Person’s Affiliates.

 

Replacement
Lender - see Section 8.7(b).

 

Reportable
Event means a
reportable event as defined in Section 4043 of ERISA and the regulations
issued thereunder as to which the PBGC has not waived the notification
requirement of Section 4043(a), or the failure of a Pension Plan to meet
the minimum funding standards of Section 412 of the Code (without regard
to whether the Pension Plan is a plan described in Section 4021(a)(2) of
ERISA) or under Section 302 of ERISA.

 

Required
Lenders means, (a) at
such time as there are fewer than three Lenders, Lenders whose Pro Rata Shares
equal 100% as determined pursuant to clause (b) of the definition of “Pro
Rata Share” or (b) at such time as there are three or more Lenders, at
least three Lenders whose Pro Rata Shares exceed 50% as determined pursuant to
clause (b) of the definition of “Pro Rata Share”.

 

Revolving
Commitment means
TWO HUNDRED TEN MILLION DOLLARS ($210,000,000), as increased or reduced from
time to time pursuant to Section 6.1.

 

Revolving
Loan - see Section 2.1.

 

Revolving
Loan Availability
means, at any time, the Revolving Commitment less the sum of Revolving
Outstandings.

 

Revolving
Outstandings
means, at any time, the aggregate Outstanding Amount of all Revolving Loans,
all Swing Line Loans and all L/C Obligations.

 

SEC means the Securities and Exchange
Commission or any other governmental authority succeeding to any of the
principal functions thereof.

 

Senior
Officer means,
with respect to any Loan Party, any of the chief executive officer, the chief
financial officer, the chief operating officer or the treasurer of such Loan
Party.

 

Series D
Preferred Stock
means the Series D preferred stock of the Company.

 

Special
Payment means any
dividend, payment or other distribution in respect of any class of the Company’s
Capital Securities or any dividend, payment or distribution in connection with
the redemption, purchase, retirement or other acquisition, directly or
indirectly, of any shares of the Company’s Capital Securities which is in
compliance with all of the following requirements:

 

20

 

(i)            immediately
before and after giving effect to any such dividend, payment, distribution,
redemption, purchase, retirement or acquisition, no Event of Default or
Unmatured Event of Default shall exist; and

 

(ii)           on
a pro forma basis after giving effect to any such dividend, payment,
distribution, redemption, purchase, retirement or acquisition, the Company is
in compliance with the financial covenants set forth in Section 11.13.

 

Subordinated
Debt means, for
any Person, any Indebtedness of such Person which is fully subordinated to all
Indebtedness of such Person owing to the Administrative Agent and the Lenders,
by written agreements and documents in form and substance satisfactory to the
Required Lenders and which is governed by terms and provisions, including
without limitation maturities, covenants, defaults, rates and fees, acceptable
to the Administrative Agent and the Required Lenders,.

 

Subordinated
Debt Documents
means any agreement or document evidencing or relating to any Subordinated
Debt, in each case, as the same may be amended, restated, modified or
supplemented and in effect from time to time as permitted by the terms hereof.

 

Subsidiary means, with respect to any Person, a
corporation, partnership, limited liability company or other entity of which
such Person owns, directly or indirectly, such number of outstanding Capital
Securities as have more than 50% of the ordinary voting power for the election
of directors or other managers of such corporation, partnership, limited
liability company or other entity. 
Unless the context otherwise requires, each reference to Subsidiaries
herein shall be a reference to Subsidiaries of the Company.

 

Swing
Line Commitment Amount means $10,000,000, as reduced from time to time pursuant to Section 6.1,
which commitment constitutes a sub facility of the Revolving Commitment of the
Swing Line Lender.

 

Swing
Line Lender means
Bank of America.

 

Swing
Line Loan - see Section 2.4.

 

Syndication
Agent means Wells
in its capacity as syndication agent for the Lenders hereunder and any
successor thereto in such capacity.

 

Taxes means any and all present and future
taxes, duties, levies, imposts, deductions, assessments, charges or
withholdings, and any and all liabilities (including interest and penalties and
other additions to taxes) with respect to the foregoing, but excluding Excluded
Taxes.

 

Termination
Date means the
earlier to occur of (a) June 29, 2013 or (b) such other date on
which the Commitments terminate pursuant to Section 6 or 13.

 

Termination
Event means, with
respect to a Pension Plan that is subject to Title IV of ERISA, (a) a
Reportable Event, (b) the withdrawal of Company or any other member of the

 

21

 

Controlled Group from such Pension Plan during a plan
year in which Company or any other member of the Controlled Group was a “substantial
employer” as defined in Section 4001(a)(2) of ERISA, (c) the
termination of such Pension Plan, the filing of a notice of intent to terminate
the Pension Plan or the treatment of an amendment of such Pension Plan as a
termination under Section 4041 of ERISA, (d) the institution by the
PBGC of proceedings to terminate such Pension Plan or (e) any event or
condition that might constitute grounds under Section 4042 of ERISA for
the termination of, or appointment of a trustee to administer, such Pension
Plan.

 

Total
Assets shall
mean, at any time, the consolidated assets of the Company and its Subsidiaries,
determined in accordance with GAAP.

 

Total
Debt means all
Debt of the Company and its Subsidiaries, determined on a consolidated basis,
excluding (a) contingent obligations in respect of Contingent Liabilities
(except to the extent constituting Contingent Liabilities in respect of Debt of
a Person other than any Loan Party and except for any Contingent Liabilities in
respect of Disqualified Stock of the Company or any of its Subsidiaries), (b) Hedging
Obligations, (c) obligations to pay Earnouts, (d) Off-Balance Sheet
Liabilities (including without limitation, the D&E and Central Park-Chicago
payment obligations identified on Schedule 11.1), (e) Debt of the
Company to Subsidiaries and Debt of Subsidiaries to the Company or to other
Subsidiaries and (f) the deferred compensation obligations identified on Schedule
11.1.

 

Total
Debt to EBITDA Ratio
means, as of the last day of any Fiscal Quarter, the ratio of (a) Total
Debt outstanding as of such day to (b) EBITDA for the Computation Period
ending on such day.

 

Total
Plan Liability
means, at any time, the present value of all vested and unvested accrued
benefits under all Pension Plans, determined as of the then most recent
valuation date for each Pension Plan, using PBGC actuarial assumptions for
single employer plan terminations.

 

Type means, with respect to any Loan, its
character as a Base Rate Loan or a LIBOR Loan.

 

UCC is defined in the Guaranty and
Collateral Agreement.

 

Unfinanced
Capital Expenditures
means Capital Expenditures which are incurred and not financed with Funded Debt
(other than Obligations).

 

Unfunded
Liability means
the amount (if any) by which the present value of all vested and unvested
accrued benefits under all Pension Plans exceeds the fair market value of all
assets allocable to those benefits, all determined as of the then most recent
valuation date for each Pension Plan, using PBGC actuarial assumptions for
single employer plan terminations.

 

Unmatured
Event of Default
means any event that, if it continues uncured, will, with lapse of time or
notice or both, constitute an Event of Default.

 

Unreimbursed
Amount - see Section 2.3.3(a).

 

22

 

Voting
Stock means any
class of Capital Securities, the holders of which are at the time entitled, as
such holders, to vote for the election of a majority of the directors (or
persons performing similar functions) of the corporation, association, trust or
other business entity involved, whether or not the right so to vote exists by
reasoning of the happening of a contingency.

 

Withholding
Certificate - see
Section 7.6(d).

 

Wholly-Owned
Subsidiary means,
as to any Person, a Subsidiary all of the Capital Securities of which (except
directors’ qualifying Capital Securities) are at the time directly or
indirectly owned by such Person and/or another Wholly-Owned Subsidiary of such
Person.

 

1.2          Other Interpretive Provisions.

 

(a)           The
meanings of defined terms are equally applicable to the singular and plural
forms of the defined terms.

 

(b)           Section,
Annex, Schedule and Exhibit references are to this Agreement unless
otherwise specified.

 

(c)           The
term “including” is not limiting and means “including without limitation.”

 

(d)           In
the computation of periods of time from a specified date to a later specified
date, the word “from” means “from and including”; the words “to” and “until”
each mean “to but excluding”, and the word “through” means “to and including.”

 

(e)           Unless
otherwise expressly provided herein, (i) references to agreements
(including this Agreement and the other Loan Documents) and other contractual
instruments shall be deemed to include all subsequent amendments, restatements,
supplements and other modifications thereto, but only to the extent such
amendments, restatements, supplements and other modifications are not
prohibited by the terms of any Loan Document, and (ii) references to any
statute or regulation shall be construed as including all statutory and
regulatory provisions amending, replacing, supplementing or interpreting such
statute or regulation.

 

(f)            This
Agreement and the other Loan Documents may use several different limitations,
tests or measurements to regulate the same or similar matters.  All such limitations, tests and measurements
are cumulative and each shall be performed in accordance with its terms.

 

(g)           This
Agreement and the other Loan Documents are the result of negotiations among and
have been reviewed by counsel to the Administrative Agent, the Collateral
Agent, the Company, the Lenders and the other parties thereto and are the
products of all parties.  Accordingly,
they shall not be construed against the Administrative Agent, the Collateral
Agent, the Issuing Lenders or the Lenders merely because of the Administrative
Agent’s, the Collateral Agent’s or Lenders’ involvement in their preparation.

 

23

 

(h)           Unless
otherwise specified, all references herein to times of day shall be references
to Central time (daylight or standard, as applicable).

 

SECTION 2

 

COMMITMENTS
OF THE LENDERS; BORROWING,

CONVERSION AND LETTER OF CREDIT PROCEDURES

 

2.1          Revolving Loans.

 

Subject
to the terms and conditions set forth herein, each Lender severally agrees to
make loans (each such loan, a “Revolving Loan”) to the Company in
Dollars from time to time on any Business Day during the Availability Period in
an aggregate amount not to exceed at any time outstanding the amount of such
Lender’s Commitment; provided, however, that after giving effect
to any Borrowing of Revolving Loans, (i) the Revolving Outstandings shall
not exceed the Revolving Commitments, and (ii) the aggregate Outstanding
Amount of the Revolving Loans of any Lender, plus such Lender’s Pro Rata
Share of the Outstanding Amount of all L/C Obligations plus such Lender’s
Pro Rata Share of the Outstanding Amount of all Swing Line Loans shall not
exceed such Lender’s Commitment.  Within
the limits of each Lender’s Commitment, and subject to the other terms and
conditions hereof, the Company may borrow under this Section 2.1,
prepay under Section 6.2, and reborrow under this Section 2.1.  Revolving Loans may be Base Rate Loans or
LIBOR Loans, as further provided herein, provided, however, all Borrowings made
on the Closing Date shall be made as Base Rate Loans.

 

2.2          Borrowing Procedures.

 

(a)           Each
Borrowing, each conversion of Loans from one Type to the other, and each continuation
of LIBOR Loans shall be made upon the Company’s irrevocable notice to the
Administrative Agent, which may be given by telephone.  Each such notice must be received by the
Administrative Agent not later than 12:00 p.m. (i) three Business
Days prior to the requested date of any Borrowing of, conversion to or
continuation of, LIBOR Loans or of any conversion of LIBOR Loans to Base Rate
Loans, and (ii) on the requested date of any Borrowing of Base Rate
Loans.  Each telephonic notice by the
Company pursuant to this Section 2.2(a) must be confirmed
promptly by delivery to the Administrative Agent of a written Loan Notice,
appropriately completed and signed by a Responsible Officer of the
Company.  Each Borrowing of, conversion
to or continuation of LIBOR Rate Loans shall be in a principal amount of
$2,000,000 or a whole multiple of $500,000 in excess thereof.  Except as provided in Sections 2.3.3
and 2.4.3, each Borrowing of or conversion to Base Rate Loans shall be
in a principal amount of $250,000 or a whole multiple of $50,000 in excess
thereof.  Each Loan Notice (whether
telephonic or written) shall specify (i) whether the Company is requesting
a Borrowing, a conversion of Loans from one Type to the other, or a
continuation of LIBOR Loans, (ii) the requested date of the Borrowing,
conversion or continuation, as the case may be (which shall be a Business Day),
(iii) the principal amount of Loans to be borrowed, converted or
continued, (iv) the Type of Loans to be borrowed or to which existing
Loans

 

24

 

are to be converted, and (v) if applicable, the
duration of the Interest Period with respect thereto.  If the Company fails to specify a Type of a
Loan in a Loan Notice or if the Company fails to give a timely notice
requesting a conversion or continuation, then the applicable Loans shall be
made as, or converted to, Base Rate Loans. Any such automatic conversion to
Base Rate Loans shall be effective as of the last day of the Interest Period
then in effect with respect to the applicable LIBOR Loans.  If the Company requests a Borrowing of,
conversion to, or continuation of LIBOR Loans in any Loan Notice, but fails to
specify an Interest Period, it will be deemed to have specified an Interest
Period of one month.

 

(b)           Following
receipt of a Loan Notice, the Administrative Agent shall promptly notify each
Lender of the amount of its Pro Rata Share of the applicable Loans, and if no
timely notice of a conversion or continuation is provided by the Company, the Administrative
Agent shall notify each Lender of the details of any automatic conversion to
Base Rate Loans as described in the preceding subsection.  In the case of a Borrowing, each Lender shall
make the amount of its Loan available to the Administrative Agent in
immediately available funds at the Administrative Agent’s Office not later than
2:00 p.m. on the Business Day specified in the applicable Loan
Notice.  Upon satisfaction of the
applicable conditions set forth in Section 12.2 (and, if such
Borrowing is the initial Credit Extension, Section 12.1), the
Administrative Agent shall make all funds so received available to the Company
in like funds as received by the Administrative Agent either by (i) crediting
the account of the Company on the books of Bank of America with the amount of
such funds or (ii) wire transfer of such funds, in each case in accordance
with instructions provided to (and reasonably acceptable to) the Administrative
Agent by the Company; provided, however, that if, on the date of
a Borrowing of Revolving Loans, there are L/C Borrowings outstanding, then the
proceeds of such Borrowing, first, shall be applied to the payment in full of
any such L/C Borrowings and second, shall be made available to the
Company as provided above.

 

(c)            Except as otherwise provided herein,
a LIBOR Loan may be continued or converted only on the last day of the Interest
Period for such LIBOR Loan.  During the
existence of an Unmatured Event of Default or Event of Default, no Loans may be
requested as, converted to or continued as LIBOR Loans without the consent of
the Required Lenders.

 

(d)            The Administrative Agent shall
promptly notify the Company and the Lenders of the interest rate applicable to
any Interest Period for LIBOR Loans upon determination of such interest
rate.  At any time that Base Rate Loans
are outstanding, the Administrative Agent shall notify the Company and the
Lenders of any change in Bank of America’s prime rate used in determining the
Base Rate promptly following the public announcement of such change.

 

(e)          After
giving effect to all Borrowings, all conversions of Loans from one Type to the
other, and all continuations of Loans as the same Type, there shall not be more
than 5 Interest Periods in effect with respect to Revolving Loans.

 

25

 

2.3          Letters of Credit.

 

2.3.1        Letter
of Credit Commitment.

 

(a)           Subject to the terms and conditions
set forth herein, (i) the Issuing Lenders agree, in reliance upon the
agreements of the Lenders set forth in this Section 2.3, (A) from
time to time on any Business Day during the period from the Closing Date until
the Letter of Credit Expiration Date, to issue Letters of Credit in Dollars for
the account of the Company or any of its Subsidiaries, and to amend or extend
Letters of Credit previously issued by it, in accordance with subsection (b) below,
and (B) to honor drawings under the Letters of Credit and Existing Letters
of Credit; and (ii) the Lenders severally agree to participate in Letters
of Credit issued for the account of the Company or its Subsidiaries and any
Existing Letters of Credit and any drawings thereunder, as applicable; provided
that after giving effect to any L/C Credit Extension with respect to any Letter
of Credit, (x) the Revolving Outstandings shall not exceed the Revolving
Commitment, (y) the aggregate Outstanding Amount of the Revolving Loans of
any Lender, plus such Lender’s Pro Rata Share of the Outstanding Amount
of all L/C Obligations plus such Lender’s Pro Rata Share of the Outstanding
Amount of all Swing Line Loans shall not exceed such Lender’s Commitment and (z) the
Outstanding Amount of the L/C Obligations shall not exceed the Letter of Credit
Sublimit.  Each request by the Company
for the issuance or amendment of a Letter of Credit shall be deemed to be a
representation by the Company that the L/C Credit Extension so requested
complies with the conditions set forth in the proviso to the preceding
sentence.  Within the foregoing limits, and
subject to the terms and conditions hereof, the Company’s ability to obtain
Letters of Credit shall be fully revolving, and accordingly the Company may,
during the foregoing period, obtain Letters of Credit to replace Letters of
Credit that have expired or that have been drawn upon and reimbursed.  Furthermore, each Lender with a Commitment
acknowledges and confirms that it has a participation interest in the liability
of the applicable Issuing Lender under the Existing Letters of Credit in a
percentage equal to its Pro Rata Share of the Revolving Loans.  The Company’s reimbursement obligations in
respect of the Existing Letters of Credit, and each Lender’s obligations in
connection therewith, shall be governed by the terms of this Agreement.

 

(b)           The Issuing Lenders shall not issue
any Letter of Credit if:

 

(i)            subject
to Section 2.3.2(c), the expiry date of such requested Letter of
Credit would occur after the Letter of Credit Expiration Date, unless the
Required Lenders have approved such expiry date; or

 

(ii)           the
expiry date of such requested Letter of Credit would occur after the Letter of
Credit Expiration Date, unless all the Lenders have approved such expiry date.

 

26

 

(c)                                   The Issuing Lenders shall
not be under any obligation to issue any Letter of Credit if:

 

(i)            any
order, judgment or decree of any Governmental Authority or arbitrator shall by
its terms purport to enjoin or restrain the applicable Issuing Lender from
issuing such Letter of Credit, or any Law applicable to such Issuing Lender or
any request or directive (whether or not having the force of law) from any
Governmental Authority with jurisdiction over the applicable Issuing Lender
shall prohibit, or request that the applicable Issuing Lender refrain from, the
issuance of letters of credit generally or such Letter of Credit in particular
or shall impose upon the applicable Issuing Lender with respect to such Letter
of Credit any restriction, reserve or capital requirement (for which the
applicable Issuing Lender is not otherwise compensated hereunder) not in effect
on the Closing Date, or shall impose upon the applicable Issuing Lender any
unreimbursed loss, cost or expense which was not applicable on the Closing Date
and which the applicable Issuing Lender in good faith deems material to it;

 

(ii)           the
issuance of such Letter of Credit would violate one or more policies of the
applicable Issuing Lender applicable to borrowers generally;

 

(iii)          except
as otherwise agreed by the Administrative Agent and the applicable Issuing
Lender, such Letter of Credit is in an initial stated amount less than
$100,000;

 

(iv)          such
Letter of Credit is to be denominated in a currency other than Dollars; or

 

(v)           a
default of any Lender’s obligations to fund under Section 2.3.3
exists or any Lender is at such time a Defaulting Lender hereunder, unless the
applicable Issuing Lender has entered into satisfactory arrangements with the
Company or such Lender to eliminate such Issuing Lender’s risk with respect to
such Lender.

 

(d)           The
applicable Issuing Lender shall be under no obligation to amend any Letter of
Credit if (A) the Issuing Lender would have no obligation at such time to
issue such Letter of Credit in its amended form under the terms hereof, or (B) the
beneficiary of such Letter of Credit does not accept the proposed amendment to
such Letter of Credit.

 

2.3.2        Procedures.

 

(a)           Each Letter of Credit shall be issued
or amended, as the case may be, upon the request of the Company delivered to
the applicable Issuing Lender (with a copy to the Administrative Agent) in the
form of an L/C Application, appropriately completed and signed by a Responsible
Officer of the Company.  Such L/C
Application must be received by the applicable Issuing Lender and the
Administrative Agent not later than 12:00 p.m. at least three (3) Business
Days (or such later date and time as the

 

27

 

Administrative Agent and the applicable Issuing Lender
may agree in a particular instance in their sole discretion) prior to the
proposed issuance date or date of amendment, as the case may be.  In the case of a request for an initial
issuance of a Letter of Credit, such L/C Application shall specify in form and
detail satisfactory to the applicable Issuing Lender: (A) the proposed
issuance date of the requested Letter of Credit (which shall be a Business
Day); (B) the amount thereof; (C) the expiry date thereof; (D) the
name and address of the beneficiary thereof; (E) the documents to be
presented by such beneficiary in case of any drawing thereunder; (F) the
full text of any certificate to be presented by such beneficiary in case of any
drawing thereunder; and (G) such other matters as the applicable Issuing
Lender may require.  In the case of a
request for an amendment of any outstanding Letter of Credit, such L/C
Application shall specify in form and detail reasonably satisfactory to the
applicable Issuing Lender (A) the Letter of Credit to be amended; (B) the
proposed date of amendment thereof (which shall be a Business Day); (C) the
nature of the proposed amendment; and (D) such other matters as the
applicable Issuing Lender may require. 
Additionally, the Company shall furnish to the applicable Issuing Lender
and the Administrative Agent such other documents and information pertaining to
such requested Letter of Credit issuance or amendment, including any Issuer
Documents, as the applicable Issuing Lender or the Administrative Agent may
require.

 

(b)           Promptly after receipt of any L/C
Application, the applicable Issuing Lender will confirm with the Administrative
Agent (by telephone or in writing) that the Administrative Agent has received a
copy of such L/C Application from the Company and, if not, the applicable
Issuing Lender will provide the Administrative Agent with a copy thereof.  Unless the applicable Issuing Lender has
received written notice from any Lender, the Administrative Agent or any Loan
Party, at least one Business Day prior to the requested date of issuance or
amendment of the applicable Letter of Credit, that one or more applicable
conditions contained in Section 12 shall not be satisfied, then,
subject to the terms and conditions hereof, the applicable Issuing Lender
shall, on the requested date, issue a Letter of Credit for the account of the
Company or the applicable Subsidiary or enter into the applicable amendment, as
the case may be, in each case in accordance with the applicable Issuing Lender’s
usual and customary business practices. 
Immediately upon the issuance of each Letter of Credit, each Lender
shall be deemed to, and hereby irrevocably and unconditionally agrees to,
purchase from the applicable Issuing Lender a risk participation in such Letter
of Credit in an amount equal to the product of such Lender’s Pro Rata Share times
the amount of such Letter of Credit.  Each
Lender hereby irrevocably and unconditionally agrees to purchase from Bank of
America and Wells, as applicable, a risk participation in each Existing Letter
of Credit in an amount equal to the product of such Lender’s Pro Rata Share times
the amount of such Existing Letter of Credit.

 

(c)           If the Company so requests in any
applicable L/C Application, the applicable Issuing Lender may, in its sole and
absolute discretion, agree to issue a Letter of Credit that has automatic
extension provisions (each, an “Auto-Extension Letter of Credit”); provided
that any such Auto-Extension Letter of Credit must permit the applicable
Issuing Lender to prevent any such extension at least once in each twelve-

 

28

 

month period (commencing with the date of issuance of
such Letter of Credit) by giving prior notice to the beneficiary thereof not
later than a day (the “Non-Extension Notice Date”) in each such
twelve-month period to be agreed upon at the time such Letter of Credit is
issued.  Unless otherwise directed by the
applicable Issuing Lender, the Company shall not be required to make a specific
request to the applicable Issuing Lender for any such extension.  Once an Auto-Extension Letter of Credit has
been issued, the Lenders shall be deemed to have authorized (but may not
require) the applicable Issuing Lender to permit the extension of such Letter
of Credit at any time to an expiry date not later than the Letter of Credit
Expiration Date; provided, however, that the applicable Issuing
Lender shall not permit any such extension if (i) such Issuing Lender has
determined that it would not be permitted, or would have no obligation, at such
time to issue such Letter of Credit in its revised form (as extended) under the
terms hereof (by reason of the provisions of clause (b) or (c) of Section 2.3.1
or otherwise), or (ii) it has received notice (which may be by telephone
or in writing) on or before the day that is three Business Days before the
Non-Extension Notice Date (A) from the Administrative Agent that the
Required Lenders have elected not to permit such extension or (B) from the
Administrative Agent, any Lender or the Company that one or more of the
applicable conditions specified in Section 12.2 is not then
satisfied, and in each case directing the applicable Issuing Lender not to
permit such extension.

 

(d)           Promptly after its delivery of any
Letter of Credit or any amendment to a Letter of Credit to an advising bank
with respect thereto or to the beneficiary thereof, the applicable Issuing
Lender will also deliver to the Company and the Administrative Agent a true and
complete copy of such Letter of Credit or amendment.

 

2.3.3        Drawings
and Reimbursements; Funding of Participations.

 

(a)           Upon receipt from the beneficiary of
any Letter of Credit or Existing Letter of Credit of any notice of drawing
under such Letter of Credit or Existing Letter of Credit, the applicable
Issuing Lender shall notify the Company and the Administrative Agent thereof.  Not later than 12:00 p.m. on the date of
any payment by the applicable Issuing Lender under a Letter of Credit or
Existing Letter of Credit (or, if such payment by the applicable Issuing Lender
is made after 12:00 p.m. not later than 10:00 a.m. the next
succeeding Business Day) (each such date, an “Honor Date”), the Company
shall reimburse the applicable Issuing Lender through the Administrative Agent
in an amount equal to the amount of such drawing.  If the Company fails to so reimburse the
applicable Issuing Lender by such time, the Administrative Agent shall promptly
notify each Lender of the Honor Date, the amount of the unreimbursed drawing
(the “Unreimbursed Amount”), and the amount of such Lender’s Pro Rata
Share thereof.  In such event, the
Company shall be deemed to have requested a Borrowing of Base Rate Loans to be
disbursed on the Honor Date in an amount equal to the Unreimbursed Amount,
without regard to the minimum and multiples specified in Section 2.2(a) for
the principal amount of Base Rate Loans, but subject to the conditions set
forth in Section 12.2 (other than the delivery of a Loan Notice)
and provided that, after giving effect to such Borrowing, the Revolving
Outstandings shall not exceed the Revolving Commitment.  Any notice given by the applicable Issuing Lender
or the Administrative Agent pursuant to this Section 2.3.3(a)

 

29

 

may be given by telephone if immediately confirmed in
writing; provided that the lack of such an immediate confirmation shall
not affect the conclusiveness or binding effect of such notice.

 

(b)           Each Lender shall upon any notice
pursuant to Section 2.3.3(a) make funds available to the
Administrative Agent for the account of the applicable Issuing Lender at the
Administrative Agent’s Office in an amount equal to its Pro Rata Share of the
Unreimbursed Amount not later than 1:00 p.m. on the Business Day specified
in such notice by the Administrative Agent, whereupon, subject to the
provisions of Section 2.3.3(c), each Lender that so makes funds available
shall be deemed to have made a Base Rate Loan to the Company in such
amount.  The Administrative Agent shall
remit the funds so received to the applicable Issuing Lender.

 

(c)           With respect to any Unreimbursed
Amount that is not fully refinanced by a Borrowing of Base Rate Loans because
the conditions set forth in Section 12.2 cannot be satisfied or for
any other reason, the Company shall be deemed to have incurred from the
applicable Issuing Lender an L/C Borrowing in the amount of the Unreimbursed Amount
that is not so refinanced, which L/C Borrowing shall be due and payable on
demand (together with interest) and shall bear interest at the Default
Rate.  In such event, each Lender’s
payment to the Administrative Agent for the account of the applicable Issuing
Lender pursuant to Section 2.3.3(b) shall be deemed payment in
respect of its participation in such L/C Borrowing and shall constitute an L/C
Advance from such Lender in satisfaction of its participation obligation under
this Section 2.3.3.

 

(d)           Until each Lender funds its Revolving
Loan or L/C Advance pursuant to this Section 2.3.3 to reimburse the
applicable Issuing Lender for any amount drawn under any Letter of Credit,
interest in respect of such Lender’s Pro Rata Share of such amount shall be
solely for the account of the applicable Issuing Lender.

 

(e)           Each Lender’s obligation to make
Revolving Loans or L/C Advances to reimburse the applicable Issuing Lender for
amounts drawn under Letters of Credit (or Existing Letters of Credit), as
contemplated by this Section 2.3.3, shall be absolute and
unconditional and shall not be affected by any circumstance, including (i) any
setoff, counterclaim, recoupment, defense or other right which such Lender may
have against the applicable Issuing Lender, the Company or any other Person for
any reason whatsoever; (ii) the occurrence or continuance of an Unmatured
Event of Default or Event of Default, or (iii) any other occurrence, event
or condition, whether or not similar to any of the foregoing; provided, however,
that each Lender’s obligation to make Revolving Loans pursuant to this Section 2.3.3
is subject to the conditions set forth in Section 12.2 (other than
delivery by the Company of a Loan Notice). 
No such making of an L/C Advance shall relieve or otherwise impair the
obligation of the Company to reimburse the applicable Issuing Lender for the
amount of any payment made by the applicable Issuing Lender under any Letter of
Credit (or under any Existing Letter of Credit), together with interest as provided
herein.

 

30

 

(f)            If any Lender fails to make
available to the Administrative Agent for the account of the applicable Issuing
Lender any amount required to be paid by such Lender pursuant to the foregoing
provisions of this Section 2.3.3 by the time specified in Section 2.3.3(b),
the applicable Issuing Lender shall be entitled to recover from such Lender
(acting through the Administrative Agent), on demand, such amount with interest
thereon for the period from the date such payment is required to the date on
which such payment is immediately available to the applicable Issuing Lender at
a rate per annum equal to the greater of the Federal Funds Rate and a rate
determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation.  A certificate of the applicable Issuing
Lender submitted to any Lender (through the Administrative Agent) with respect
to any amounts owing under this clause (f) shall be conclusive absent
manifest error.

 

2.3.4        Repayment
of Participations.

 

(a)           At any time after the applicable
Issuing Lender has made a payment under any Letter of Credit or Existing Letter
of Credit and has received from any Lender such Lender’s L/C Advance in respect
of such payment in accordance with Section 2.3.3, if the
Administrative Agent receives for the account of the applicable Issuing Lender
any payment in respect of the related Unreimbursed Amount or interest thereon
(whether directly from the Company or otherwise, including proceeds of cash
collateral applied thereto by the Administrative Agent), the Administrative
Agent will distribute to such Lender its Pro Rata Share thereof (appropriately
adjusted, in the case of interest payments, to reflect the period of time
during which such Lender’s L/C Advance was outstanding) in the same funds as
those received by the Administrative Agent.

 

(b)           If any payment received by the
Administrative Agent for the account of an Issuing Lender pursuant to Section 2.3.3(a) is
required to be returned under any of the circumstances described in Section 7.5
(including pursuant to any settlement entered into by such Issuing Lender, each
Lender shall pay to the Administrative Agent for the account of such Issuing
Lender its Pro Rata Share thereof on demand of the Administrative Agent, plus
interest thereon from the date of such demand to the date such amount is
returned by such Lender, at a rate per annum equal to the Federal Funds Rate
from time to time in effect.  The
obligations of the Lenders under this clause shall survive the payment in full
of the Obligations and the termination of this Agreement.

 

2.3.5        Obligations
Absolute.

 

The
obligation of the Company to reimburse the applicable Issuing Lender for each
drawing under each Letter of Credit or Existing Letter of Credit and to repay
each L/C Borrowing shall be absolute, unconditional and irrevocable, and shall
be paid strictly in accordance with the terms of this Agreement under all
circumstances, including the following:

 

(a)           any lack of validity or
enforceability of such Letter of Credit or Existing Letter of Credit, this
Agreement or any other Loan Document;

 

31

 

(b)           the existence of any claim,
counterclaim, setoff, defense or other right that the Company or any Subsidiary
may have at any time against any beneficiary or any transferee of such Letter
of Credit or Existing Letter of Credit (or any Person for whom any such
beneficiary or any such transferee may be acting), the applicable Issuing
Lender or any other Person, whether in connection with this Agreement, the
transactions contemplated hereby or by such Letter of Credit or Existing Letter
of Credit or any agreement or instrument relating thereto, or any unrelated
transaction;

 

(c)           any draft, demand, certificate or
other document presented under such Letter of Credit or Existing Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect
or any statement therein being untrue or inaccurate in any respect; or any loss
or delay in the transmission or otherwise of any document required in order to
make a drawing under such Letter of Credit or Existing Letter of Credit;

 

(d)           any payment by the applicable Issuing
Lender under such Letter of Credit 
against presentation of a draft or certificate that does not strictly
comply with the terms of such Letter of Credit or Existing Letter of Credit, as
applicable; or any payment made by such Issuing Lender under such Letter of
Credit (or such Existing Letter of Credit, as applicable) to any Person
purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for
the benefit of creditors, liquidator, receiver or other representative of or
successor to any beneficiary or any transferee of such Letter of Credit or
Existing Letter of Credit, including any arising in connection with any
proceeding under any Debtor Relief Law; or

 

(e)           any other circumstance or happening
whatsoever, whether or not similar to any of the foregoing, including any other
circumstance that might otherwise constitute a defense available to, or a
discharge of, the Company or any Subsidiary.

 

The
Company shall promptly examine a copy of each Letter of Credit or Existing
Letter of Credit and each amendment thereto that is delivered to it and, in the
event of any claim of noncompliance with the Company’s instructions or other
irregularity, the Company will immediately notify the applicable Issuing
Lender.  The Company shall be
conclusively deemed to have waived any such claim against the applicable
Issuing Lender and its correspondents unless such notice is given as aforesaid.

 

2.3.6        Role
of Issuing Lender.

 

Each
Lender and the Company agree that, in paying any drawing under a Letter of
Credit or Existing Letter of Credit, the applicable Issuing Lender shall not
have any responsibility to obtain any document (other than any sight draft,
certificates and documents expressly required by such Letter of Credit or
Existing Letter of Credit) or to ascertain or inquire as to the validity or
accuracy of any such document or the authority of the Person executing or delivering
any such document.  None of the
applicable Issuing Lender, the Administrative Agent, any of their respective
Related Parties nor any correspondent, participant or assignee of such Issuing
Lender shall be liable to any

 

32

 

Lender for (i) any action taken or omitted in
connection herewith at the request or with the approval of the Lenders or the
Required Lenders, as applicable; (ii) any action taken or omitted in the
absence of gross negligence or willful misconduct; or (iii) the due
execution, effectiveness, validity or enforceability of any document or
instrument related to any Letter of Credit, Existing Letter of Credit or Issuer
Document, as applicable.  The Company
hereby assumes all risks of the acts or omissions of any beneficiary or
transferee with respect to its use of any Letter of Credit or Existing Letter
of Credit; provided, however, that this assumption is not
intended to, and shall not, preclude the Company’s pursuing such rights and
remedies as it may have against the beneficiary or transferee at law or under
any other agreement.  None of the
applicable Issuing Lender, the Administrative Agent, any of their respective
Related Parties nor any correspondent, participant or assignee of the applicable
Issuing Lender shall be liable or responsible for any of the matters described
in clauses (a) through (e) of Section 2.3.5; provided,
however, that anything in such clauses to the contrary notwithstanding,
the Company may have a claim against the applicable Issuing Lender, and such
Issuing Lender may be liable to the Company, to the extent, but only to the
extent, of any direct, as opposed to consequential or exemplary, damages
suffered by the Company which the Company proves were caused by such Issuing
Lender’s willful misconduct or gross negligence or such Issuing Lender’s
willful failure to pay under any Letter of Credit or Existing Letter of Credit
after the presentation to it by the beneficiary of a sight draft and
certificate(s) strictly complying with the terms and conditions of a
Letter of Credit or Existing Letter of Credit unless such Issuing Lender is
prevented or prohibited from so paying as a result of any order or directive of
any court or other Governmental Authority. 
In furtherance and not in limitation of the foregoing, the applicable
Issuing Lender may accept documents that appear on their face to be in order,
without responsibility for further investigation, regardless of any notice or
information to the contrary, and such Issuing Lender shall not be responsible
for the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign a Letter of Credit or Existing Letter of
Credit or the rights or benefits thereunder or proceeds thereof, in whole or in
part, which may prove to be invalid or ineffective for any reason.

 

2.3.7        Cash
Collateral.

 

Upon
the request of the Administrative Agent, (i) if any Issuing Lender has
honored any full or partial drawing request under any Letter of Credit or
Existing Letter of Credit and such drawing has resulted in an L/C Borrowing, or
(ii) if, as of the Letter of Credit Expiration Date, any L/C Obligation
for any reason remains outstanding, the Company shall, in each case,
immediately Cash Collateralize the then Outstanding Amount of all L/C
Obligations.  The Company hereby grants
to the Collateral Agent, for the benefit of the Issuing Lenders and the
Lenders, a security interest in all such cash, deposit accounts and all balances
therein and all proceeds of the foregoing. 
Cash Collateral shall be maintained in blocked, non-interest bearing
deposit accounts with the Collateral Agent.

 

33

 

2.3.8        Applicability
of ISP.

 

Unless
otherwise expressly agreed by the applicable Issuing Lender and the Company
when a Letter of Credit is issued, the rules of the ISP shall apply to
each Letter of Credit.

 

2.3.9        Conflict
with Issuer Documents.

 

In the
event of any conflict between the terms hereof and the terms of any Issuer
Document, the terms hereof shall control.

 

2.3.10      Letters
of Credit Issued for Subsidiaries.

 

Notwithstanding
that a Letter of Credit issued or outstanding hereunder is in support of any
obligations of, or is for the account of, a Subsidiary, the Company shall be
obligated to reimburse the applicable Issuing Lender hereunder for any and all
drawings under such Letter of Credit. 
The Company hereby acknowledges that the issuance of Letters of Credit
for the account of Subsidiaries inures to the benefit of the Company, and that
the Company’s business derives substantial benefits from the businesses of such
Subsidiaries.

 

2.3.11      Letter
of Credit Amounts.

 

Unless
otherwise specified herein, the amount of a Letter of Credit or Existing Letter
of Credit at any time shall be deemed to be the stated amount of such Letter of
Credit or Existing Letter of Credit in effect at such time; provided, however,
that with respect to any Letter of Credit or Existing Letter of Credit that, by
its terms or the terms of any Issuer Document related thereto, provides for one
or more automatic increases in the stated amount thereof, the amount of such
Letter of Credit or Existing Letter of Credit shall be deemed to be the maximum
stated amount of such Letter of Credit or Existing Letter of Credit after
giving effect to all such increases, whether or not such maximum stated amount
is in effect at such time.

 

2.4          Swing Line Facility.

 

2.4.1        Swing
Line Facility.

 

Subject
to the terms and conditions set forth herein, the Swing Line Lender agrees, in
reliance upon the agreements of the other Lenders set forth in this Section 2.4,
to make loans (each such loan, a “Swing Line Loan”) to the Company in
Dollars from time to time on any Business Day during the Availability Period in
an aggregate amount not to exceed at any time outstanding the amount of the
Swing Line Commitment Amount, notwithstanding the fact that such Swing Line
Loans, when aggregated with the Pro Rata Share of the Outstanding Amount of
Revolving Loans and L/C Obligations of the Swing Line Lender in its capacity as
a Lender of Revolving Loans, may exceed the amount of such Lender’s Commitment;
provided, however, that after giving effect to any Swing Line
Loan, (i) the Revolving Outstandings shall not exceed the Revolving
Commitment, and (ii) the aggregate Outstanding Amount of the Revolving
Loans of any

 

34

 

Lender, plus such Lender’s Pro Rata Share of
the Outstanding Amount of all L/C Obligations, plus such Lender’s Pro
Rata Share of the Outstanding Amount of all Swing Line Loans shall not exceed
such Lender’s Commitment, and provided, further, that the Company
shall not use the proceeds of any Swing Line Loan to refinance any outstanding
Swing Line Loan.  Within the foregoing
limits, and subject to the other terms and conditions hereof, the Company may
borrow under this Section 2.4, prepay under Section 6.2,
and reborrow under this Section 2.4.  Each Swing Line Loan shall be a Base Rate
Loan.  Immediately upon the making of a
Swing Line Loan, each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the Swing Line Lender a risk
participation in such Swing Line Loan in an amount equal to the product of such
Lender’s Pro Rata Share times the amount of such Swing Line Loan.

 

2.4.2        Borrowing
Procedures.

 

Each
Borrowing of Swing Line Loans shall be made upon the Company’s irrevocable
notice to the Swing Line Lender and the Administrative Agent, which may be
given by telephone.  Each such notice
must be received by the Swing Line Lender and the Administrative Agent not
later than 1:00 p.m. on the requested borrowing date, and shall specify (i) the
amount to be borrowed, which shall be a minimum principal amount of $250,000
and integral multiples of $100,000 in excess thereof, and (ii) the
requested borrowing date, which shall be a Business Day.  Each such telephonic notice must be confirmed
promptly by delivery to the Swing Line Lender and the Administrative Agent of a
written Swing Line Loan Notice, appropriately completed and signed by a
Responsible Officer of the Company. 
Promptly after receipt by the Swing Line Lender of any telephonic Swing
Line Loan Notice, the Swing Line Lender will confirm with the Administrative
Agent (by telephone or in writing) that the Administrative Agent has also
received such Swing Line Loan Notice and, if not, the Swing Line Lender will
notify the Administrative Agent (by telephone or in writing) of the contents
thereof.  Unless the Swing Line Lender
has received notice (by telephone or in writing) from the Administrative Agent
(including at the request of any Lender) prior to 2:00 p.m. on the date of
the proposed Borrowing of Swing Line Loans (A) directing the Swing Line
Lender not to make such Swing Line Loan as a result of the limitations set
forth in the proviso to the first sentence of Section 2.4.1, or (B) that
one or more of the applicable conditions specified in Section 12 is
not then satisfied, then, subject to the terms and conditions hereof, the Swing
Line Lender will, not later than 3:00 p.m. on the borrowing date specified
in such Swing Line Loan Notice, make the amount of its Swing Line Loan
available to the Company.

 

2.4.3        Refinancing
of Swing Line Loans.

 

(a)           The Swing Line Lender at any time in
its sole and absolute discretion may request, on behalf of the Company (which
hereby irrevocably requests and authorizes the Swing Line Lender to so request
on its behalf), that each Lender make a Base Rate Loan in an amount equal to
such Lender’s Pro Rata Share of the amount of Swing Line Loans then
outstanding.  Such request shall be made
in writing (which written request shall be deemed to be a Loan Notice for
purposes hereof) and in accordance with the requirements of Section 2.2.1,
without regard to the minimum and multiples specified 

 

35

 

therein for the principal amount of Base Rate Loans,
but subject to the conditions set forth in Section 12.2 (other than
the delivery of a Loan Notice) and provided that, after giving effect to such
Borrowing, the Revolving Outstandings shall not exceed the Revolving
Commitment.  The Swing Line Lender shall
furnish the Company with a copy of the applicable Loan Notice promptly after
delivering such notice to the Administrative Agent.  Each Lender shall make an amount equal to its
Pro Rata Share of the amount specified in such Loan Notice available to the
Administrative Agent in immediately available funds for the account of the
Swing Line Lender at the Administrative Agent’s Office not later than 1:00 p.m.
on the day specified in such Loan Notice, whereupon, subject to Section 2.4.3(b),
each Lender that so makes funds available shall be deemed to have made a Base
Rate Loan to the Company in such amount. 
The Administrative Agent shall remit the funds so received to the Swing
Line Lender.

 

(b)           If for any reason any Swing Line Loan
cannot be refinanced by such a Borrowing of Revolving Loans in accordance with Section 2.4.3(a),
the request for Base Rate Loans submitted by the Swing Line Lender as set forth
herein shall be deemed to be a request by the Swing Line Lender that each of
the Lenders fund its risk participation in the relevant Swing Line Loan and
each Lender’s payment to the Administrative Agent for the account of the Swing
Line Lender pursuant to Section 2.4.3(a) shall be deemed
payment in respect of such participation.

 

(c)           If any Lender fails to make available
to the Administrative Agent for the account of the Swing Line Lender any amount
required to be paid by such Lender pursuant to the foregoing provisions of this
Section 2.4.3 by the time specified in Section 2.4.3(a),
the Swing Line Lender shall be entitled to recover from such Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon
for the period from the date such payment is required to the date on which such
payment is immediately available to the Swing Line Lender at a rate per annum
equal to the greater of the Federal Funds Rate and a rate determined by the
Swing Line Lender in accordance with banking industry rules on interbank
compensation.  A certificate of the Swing
Line Lender submitted to any Lender (through the Administrative Agent) with
respect to any amounts owing under this clause (c) shall be conclusive
absent manifest error.

 

(d)           Each Lender’s obligation to make
Revolving Loans or to purchase and fund risk participations in Swing Line Loans
pursuant to this Section 2.4.3 shall be absolute and unconditional
and shall not be affected by any circumstance, including (i) any setoff,
counterclaim, recoupment, defense or other right that such Lender may have
against the Swing Line Lender, the Company or any other Person for any reason
whatsoever, (ii) the occurrence or continuance of an Unmatured Event of
Default or Event of Default or (ii) any other occurrence, event or
condition, whether or not similar to any of the foregoing; provided, however,
that each Lender’s obligation to make Revolving Loans pursuant to this Section 2.4.3
is 

subject to the conditions set forth in Section 12.2.  No such purchase or funding of risk
participations shall relieve or otherwise impair the obligation of the Company
to repay Swing Line Loans, together with interest as provided herein.

 

36

 

2.4.4        Repayment
of Participations.

 

(a)           At any time after any Lender has
purchased and funded a risk participation in a Swing Line Loan, if the Swing
Line Lender receives any payment on account of such Swing Line Loan, the Swing
Line Lender will distribute to such Lender its Pro Rata Share of such payment
(appropriately adjusted, in the case of interest payments, to reflect the
period of time during which such Lender’s risk participation was funded) in the
same funds as those received by the Swing Line Lender.

 

(b)           If any payment received by the Swing
Line Lender in respect of principal or interest on any Swing Line Loan is
required to be returned by the Swing Line Lender under any of the circumstances
described in Section 7.05 (including pursuant to any settlement
entered into by the Swing Line Lender in its discretion), each Lender shall pay
to the Swing Line Lender its Pro Rata Share thereof on demand of the
Administrative Agent, plus interest thereon from the date of such demand to the
date such amount is returned, at a rate per annum equal to the Federal Funds
Rate.  The Administrative Agent will make
such demand upon the request of the Swing Line Lender.  The obligations of the Lenders under this clause
shall survive the payment in full of the Obligations and the termination of
this Agreement.

 

2.4.5        Interest
for Account of Swing Line Lender.

 

The
Swing Line Lender shall be responsible for invoicing the Company for interest
on the Swing Line Loans.  Until each
Lender funds its Revolving Loans that are Base Rate Loans or risk participation
pursuant to this Section 2.4 to refinance such Lender’s Pro Rata
Share of any Swing Line Loan, interest in respect of such Pro Rata Share shall
be solely for the account of the Swing Line Lender.

 

2.4.6        Payments
Directly to Swing Line Lender.

 

The
Company shall make all payments of principal and interest in respect of the
Swing Line Loans directly to the Swing Line Lender.

 

2.5          Commitments Several.

 

The
failure of any Lender to make a requested Loan on any date shall not relieve
any other Lender of its obligation (if any) to make a Loan on such date, but no
Lender shall be responsible for the failure of any other Lender to make any
Loan to be made by such other Lender.

 

2.6          Certain Conditions.

 

Except as otherwise provided in Sections 2.3.3(e) and
2.4.3 of this Agreement, no Lender shall have an obligation to make any
Loan, or to permit the continuation of or any conversion into any LIBOR Loan,
and the applicable Issuing Lender shall not have any obligation to issue any
Letter of Credit, if an Event of Default or Unmatured Event of Default exists.

 

37

 

SECTION 3

 

EVIDENCING
OF LOANS

 

3.1          Notes.

 

The Loans of each Lender shall be evidenced by a Note,
with appropriate insertions, payable to the order of such Lender in a face
principal amount equal to the sum of such Lender’s Revolving Commitment.

 

3.2          Recordkeeping.

 

The Administrative Agent, on behalf of each Lender,
shall record in its records, the date and amount of each Loan made by each
Lender, each repayment or conversion thereof and, in the case of each LIBOR
Loan, the dates on which each Interest Period for such Loan shall begin and
end.  The aggregate unpaid principal
amount so recorded shall be rebuttably presumptive evidence of the principal amount
of the Loans owing and unpaid.  The
failure to so record any such amount or any error in so recording any such
amount shall not, however, limit or otherwise affect the Obligations of the
Company hereunder or under any Note to repay the principal amount of the Loans
hereunder, together with all interest accruing thereon.

 

SECTION 4

 

INTEREST

 

4.1          Interest Rates.

 

The Company promises to pay interest on the unpaid
principal amount of each Loan for the period commencing on the date of such
Loan until such Loan is paid in full as follows:

 

(a)         at all times while such Loan is a Base
Rate Loan, at a rate per annum equal to the sum of the Base Rate from time to
time in effect plus the Base Rate Margin from time to time in effect; and

 

(b)        at all times while such Loan is a LIBOR
Loan, at a rate per annum equal to the sum of the LIBOR Rate applicable to each
Interest Period for such Loan plus the LIBOR Margin from time to time in
effect;

 

provided that at any time an Event of Default exists, unless
the Required Lenders otherwise consent, the interest rate applicable to each
Loan shall be increased by 2% per annum (and, in the case of Obligations not
bearing interest, such Obligations shall bear interest at the Base Rate
applicable to Revolving Loans plus 2% per annum), provided  further
that such increase may thereafter be rescinded by the Required Lenders,
notwithstanding Section 15.1. 
Notwithstanding

 

38

 

the foregoing, upon the occurrence of an Event of
Default under Section 13.1.1 or 13.1.4, such increase shall
occur automatically.

 

4.2          Interest Payment Dates.

 

Accrued interest on each Base Rate Loan shall be
payable in arrears on the last day of each calendar quarter and at
maturity.  Accrued interest on each LIBOR
Loan shall be payable on the last day of each Interest Period relating to such
Loan (and, in the case of a LIBOR Loan with an Interest Period in excess of
three months, on the three-month anniversary of the first day of such Interest
Period), upon a prepayment of such Loan, and at maturity.  After maturity, and at any time an Event of
Default exists, accrued interest on all Loans shall be payable on demand.

 

4.3          Setting and Notice of LIBOR Rates.

 

The applicable LIBOR Rate for each Interest Period
shall be determined by the Administrative Agent, and notice thereof shall be
given by the Administrative Agent promptly to the Company and each Lender.  Each determination of the applicable LIBOR
Rate by the Administrative Agent shall be conclusive and binding upon the
parties hereto, in the absence of demonstrable error.  The Administrative Agent shall, upon written
request of the Company or any Lender, deliver to the Company or such Lender a
statement showing the computations used by the Administrative Agent in determining
any applicable LIBOR Rate hereunder.

 

4.4          Computation of Interest.

 

All
computations of interest for Base Rate Loans when the Base Rate is determined
by Bank of America’s “prime rate” shall be made on the basis of a year of 365
or 366 days, as the case may be, and actual days elapsed.  All other computations of fees and interest
shall be made on the basis of a 360-day year and actual days elapsed (which
results in more fees or interest, as applicable, being paid than if computed on
the basis of a 365-day year).  Interest
shall accrue on each Loan for the day on which the Loan is made, and shall not
accrue on a Loan, or any portion thereof, for the day on which the Loan or such
portion is paid, provided that any Loan that is repaid on the same day
on which it is made shall bear interest for one day.  Each determination by the Administrative
Agent of an interest rate or fee hereunder shall be conclusive and binding for
all purposes, absent manifest error.

 

If, as a result of any
restatement of or other adjustment to the financial statements of the Borrower
or for any other reason, the Borrower or the Lenders determine that (i) the
Total Debt to EBITDA Ratio as calculated by the Borrower as of any applicable
date was inaccurate and (ii) a proper calculation of the Total Debt to
EBITDA Ratio would have resulted in higher pricing for such period, the
Borrower shall immediately and retroactively be obligated to pay to the
Administrative Agent for the account of the applicable Lenders or the Issuing
Lender, as the case may be, promptly on demand by the Administrative Agent (or,
after the occurrence of an actual or deemed entry of an order for relief with
respect to the Borrower under the bankruptcy code of the United States,
automatically and without further action by the Administrative Agent, any
Lender or the Issuing Lender), an amount equal to the excess of the amount of
interest and fees that should have been paid for such period over the amount of
interest and fees actually paid for

 

39

 

such period.  This paragraph shall not limit the rights of
the Administrative Agent, any Lender or the L/C Issuer, as the case may be,
under Section 2.3.3, 5.2 or 4.1 or under Section 13.  The Borrower’s obligations under this
paragraph shall survive the termination of the Commitments of all of the
Lenders and the repayment of all other Obligations hereunder.

 

SECTION 5

 

FEES

 

5.1          Non-Use Fee.

 

The
Company agrees to pay to the Administrative Agent for the account of each Lender
a non-use fee, for the period from the Closing Date to the Termination Date, at
the Non-Use Fee Rate in effect from time to time of such Lender’s Pro Rata
Share (as adjusted from time to time) of the unused amount of the Revolving
Commitment.  For purposes of calculating
usage under this Section, the Revolving Commitment shall be deemed used to the
extent of aggregate Outstanding Amount of all Revolving Loans and L/C
Obligations.  Such non-use fee shall be
payable in arrears on the last day of each calendar quarter and on the
Termination Date for any period then ending for which such non-use fee shall
not have previously been paid.  The
non-use fee shall be computed for the actual number of days elapsed on the basis
of a year of 360 days.  For purposes of
clarification, Swing Line Loans shall not be considered outstanding for
purposes of determining the non-use fee.

 

5.2          Letter of Credit Fees.

 

(a)           The
Company agrees to pay to the Administrative Agent for the account of each
Lender a letter of credit fee for each Letter of Credit and Existing Letter of
Credit equal to the L/C Fee Rate in effect from time to time of such Lender’s
Pro Rata Share (as adjusted from time to time) of the undrawn amount of such
Letter of Credit or Existing Letter of Credit, as applicable (computed for the
actual number of days elapsed on the basis of a year of 360 days); provided
that, unless the Required Lenders otherwise consent, the rate applicable to
each Letter of Credit and each Existing Letter of Credit shall be increased by
2% per annum at any time that an Event of Default exists.  Such letter of credit fee shall be payable in
arrears on the last day of each calendar quarter and on the Termination Date
(or such later date on which such Letter of Credit or Existing Letter of Credit
expires or is terminated) for the period from the date of the issuance of each
Letter of Credit (other than any Existing Letter of Credit) (or the last day on
which the letter of credit fee was paid with respect thereto), and from the
Closing Date with respect to the Existing Letters of Credit, to the date such
payment is due or, if earlier, the date on which such Letter of Credit or
Existing Letter of Credit expired or was terminated.

 

(b)           In
addition, with respect to each Letter of Credit and Existing Letter of Credit,
the Company agrees to pay to the applicable Issuing Lender, Bank of America or
Wells, as applicable, for its own account, (i) such fees and expenses as
such Issuing Lender, Bank of America or Wells, as applicable, customarily
requires in connection with the issuance,

 

40

 

negotiation, processing and/or administration of
letters of credit in similar situations and (ii) a letter of credit
fronting fee in the amount of 0.125% per annum of the maximum amount available
to be drawn under such Letter of Credit or Existing Letter of Credit, due and
payable quarterly in arrears on the Business Day immediately following the last
day of each March, June, September and December, commencing with the first
such date to occur after the issuance of such Letter of Credit (or with respect
to any Existing Letter of Credit, the first such date to occur after the
Closing Date), and on the Letter of Credit Expiration Date.

 

5.3          Administrative Agent’s Fees.

 

The
Company agrees to pay to the Administrative Agent such agent’s fees as are
mutually agreed to from time to time by the Company and the Administrative
Agent including the fees set forth in the Fee Letter.

 

SECTION 6

 

INCREASE,
REDUCTION OR TERMINATION OF THE REVOLVING COMMITMENT; PREPAYMENTS

 

6.1          Increase, Reduction or Termination
of the Revolving Commitment.

 

6.1.1        Increase
of the Revolving Commitment.

 

From
time to time after the Closing Date and prior to the Termination Date, the
Company may, at its option, with the approval of the Administrative Agent, and
subject to the following conditions, request to increase the aggregate
Revolving Commitment by up to an additional $40,000,000.  In addition to the approval of the
Administrative Agent, any such increase shall be conditioned upon each of the
following:

 

(a)           no Event of Default or Unmatured
Event of Default shall have occurred and be continuing,

 

(b)           The Company shall have obtained a
commitment from an existing Lender or a commitment to participate as an
additional Lender hereunder from a financial institution which is reasonably
acceptable to the Administrative Agent, which commitment shall be in writing
and be in a minimum amount of $5,000,000 or an integral multiple thereof,

 

(c)           Such Lender increasing its Commitment
or such proposed additional Lender shall have executed an amendment to this
Agreement in form and substance satisfactory to the Administrative Agent
pursuant to which such Lender increases its Commitment or such additional
Lender shall become a Lender hereunder with a Revolving Commitment; and

 

41

 

(d)           The Loan Parties shall
have executed and/or delivered to the Administrative Agent such additional
instruments, documents, certificates and agreements as the Administrative Agent
shall reasonably request in connection with the foregoing and to confirm that
such increase in the Revolving Commitment hereunder has been duly authorized
and approved by each of the Loan Parties.

 

Upon satisfaction of all such conditions precedent,
the Commitments shall have been increased as appropriate and such proposed additional
Lender, if any, shall become a Lender hereunder on and subject to the terms and
conditions of this Agreement.

 

6.1.2        Voluntary Reduction or Termination of the
Revolving Commitment.

 

The
Company may from time to time on at least five Business Days’ prior written
notice received by the Administrative Agent (which shall promptly advise each
Lender thereof) permanently reduce the Revolving Commitment to an amount not
less than the Revolving Outstandings. 
Any such reduction shall be in an amount not less than $5,000,000 or a
higher integral multiple of $1,000,000. 
Concurrently with any reduction of the Revolving Commitment to zero, the
Company shall pay all interest on the Revolving Loans, all non-use fees and all
letter of credit fees and shall Cash Collateralize in full all obligations
arising with respect to the Letters of Credit and Existing Letters of Credit.

 

6.1.3        All Reductions of the Revolving
Commitment.

 

All
reductions of the Revolving Commitment shall reduce the Commitments ratably
among the Lenders according to their respective Pro Rata Shares.

 

6.2                               Repayments.

 

6.2.1        Voluntary Repayments.

 

The
Company may from time to time repay the Loans (without any corresponding
reduction in the Revolving Commitment) in whole or in part; provided
that the Company shall give the Administrative Agent (which shall promptly
advise each Lender) notice thereof not later than Noon, on the day of such
repayment (which shall be a Business Day), specifying the Loans to be repaid
and the date and amount of repayment.  Any such partial repayment shall be in an
amount equal to $250,000 or a higher integral multiple of $50,000.

 

6.2.2        Mandatory Repayments.

 

(a)           The Company shall make
a repayment of the Loans (without any corresponding reduction in the Revolving
Commitment) upon the occurrence of any of the following (each a “Mandatory
Repayment Event”) at the following 

 

42

 

times and in the following amounts (such applicable
amounts being referred to as “Designated Proceeds”):

 

(i)            Concurrently
with the receipt by any Loan Party of any Net Cash Proceeds from any Asset
Disposition, in an amount equal to 100% of such Net Cash Proceeds.

 

(ii)           Concurrently
with the receipt by any Loan Party of any Net Cash Proceeds from any issuance
of Capital Securities of any Loan Party (excluding (x) any issuance of
Capital Securities pursuant to any employee or director option program, benefit
plan or compensation program, and (y) any issuance by a Subsidiary to the
Company or another Subsidiary), in an amount equal to 100% of such Net Cash
Proceeds.

 

(iii)          Concurrently
with the receipt by any Loan Party of any Net Cash Proceeds from any issuance
of any Debt of any Loan Party (excluding Debt permitted by of Section 11.1),
in an amount equal to 100% of such Net Cash Proceeds.

 

(b)           If on any day on which
the Revolving Outstandings exceed the Revolving Commitment, the Company shall
immediately repay Revolving Loans or Cash Collateralize the outstanding Letters
of Credit, or do a combination of the foregoing, in an amount sufficient to
eliminate such excess.

 

6.3                               Manner of Repayments.

 

6.3.1        Partial Repayments.

 

Any
repayment of a LIBOR Loan on a day other than the last day of an Interest
Period therefore shall include interest on the principal amount being repaid
and shall be subject to Section 8.4.  Except as otherwise provided by this
Agreement and the other Loan Documents, and unless otherwise directed in
writing by the Company, all principal payments in respect of the Loans (other
than the Swing Line Loans) shall be applied first, to repay outstanding Base
Rate Loans and then to repay outstanding LIBOR Rate Loans in direct order of
Interest Period maturities.

 

6.4                               Final Repayment.

 

6.4.1        Revolving Loans.

 

The
Revolving Loans of each Lender shall be paid in full and the Revolving
Commitment shall terminate on the Termination Date.

 

43

 

SECTION 7

 

MAKING
AND PRORATION OF PAYMENTS; SETOFF; TAXES

 

7.1                               Making of Payments.

 

All
payments of principal or interest on the Notes, and of all fees, shall be made
by the Company to the Administrative Agent in immediately available funds at
the office specified by the Administrative Agent not later than 1:00 P.M.,
on the date due; and funds received after that hour shall be deemed to have
been received by the Administrative Agent on the following Business Day.  The Administrative Agent shall promptly remit
to each Lender its share of all such payments received in collected funds by
the Administrative Agent for the account of such Lender.  All payments under Section 8.1
shall be made by the Company directly to the Lender entitled thereto without
setoff, counterclaim or other defense.

 

7.2                               Application of Certain Payments.

 

So
long as no Event of Default has occurred and is continuing, (a) payments
matching specific scheduled payments then due shall be applied to those
scheduled payments and (b) voluntary and mandatory prepayments shall be
applied as set forth in Sections 6.2 and 6 3.   After the occurrence and during the
continuance of an Event of Default, all amounts collected or received by the
Administrative Agent or any Lender as proceeds from the sale of, or other
realization upon, all or any part of the collateral shall be applied as the
Administrative Agent shall determine in its discretion or, in the absence of a
specific determination by the Administrative Agent, as set forth in the
Guaranty and Collateral Agreement. 
Concurrently with each remittance to any Lender of its share of any such
payment, the Administrative Agent shall advise such Lender as to the
application of such payment.

 

7.3                               Due Date Extension.

 

If any
payment of principal or interest with respect to any of the Loans, or of any
fees, falls due on a day which is not a Business Day, then such due date shall
be extended to the immediately following Business Day (unless, in the case of a
LIBOR Loan, such immediately following Business Day is the first Business Day
of a calendar month, in which case such due date shall be the immediately
preceding Business Day) and, in the case of principal, additional interest
shall accrue and be payable for the period of any such extension.

 

7.4                               Setoff.

 

The
Company agrees that the Collateral Agent and each Lender have all rights of
set-off and bankers’ lien provided by applicable law, and in addition thereto,
the Company agrees that at any time any Event of Default exists, the
Administrative Agent and each Lender may apply to the payment of any
Obligations of the Company hereunder, whether or not then due, any and all balances,
credits, deposits, accounts or moneys of the Company then or thereafter with
the Collateral Agent or such Lender.

 

44

 

7.5                               Proration of Payments.

 

If any
Lender shall obtain any payment or other recovery (whether voluntary,
involuntary, by application of offset or otherwise, on account of (a) principal
of or interest on any Loan, but excluding (i) any payment pursuant to Section 8.7
or 15.6 and (ii) payments of interest on any Affected Loan) or (b) its
participation in any Letter of Credit or Existing Letter of Credit) in excess
of its applicable Pro Rata Share of payments and other recoveries obtained by
all Lenders on account of principal of and interest on the Loans (or such
participation) then held by them, then such Lender shall purchase from the
other Lenders such participations in the Loans (or sub-participations in
Letters of Credit or Existing Letters of Credit) held by them as shall be
necessary to cause such purchasing Lender to share the excess payment or other
recovery ratably with each of them; provided that if all or any portion
of the excess payment or other recovery is thereafter recovered from such
purchasing Lender, the purchase shall be rescinded and the purchase price
restored to the extent of such recovery.

 

7.6                               Taxes.

 

(a)           All payments made by the Company
hereunder or under any Loan Documents shall be made without setoff,
counterclaim, or other defense.  To the
extent permitted by applicable law, all payments hereunder or under the Loan
Documents (including any payment of principal, interest, or fees) to, or for
the benefit, of any person shall be made by the Company free and clear of and
without deduction or withholding for, or account of, any Taxes now or
hereinafter imposed by any taxing authority.

 

(b)           If the Company makes any payment
hereunder or under any Loan Document in respect of which it is required by
applicable law to deduct or withhold any Taxes, the Company shall increase the
payment hereunder or under any such Loan Document such that after the reduction
for the amount of Taxes withheld (and any taxes withheld or imposed with
respect to the additional payments required under this Section 7.6(b)),
the amount paid to the Lenders or the Administrative Agent equals the amount
that was payable hereunder or under any such Loan Document without regard to
this Section 7.6(b).  To the
extent the Company withholds any Taxes on payments hereunder or under any Loan
Document, the Company shall pay the full amount deducted to the relevant taxing
authority within the time allowed for payment under applicable law and shall
deliver to the Administrative Agent within 30 days after it has made payment to
such authority a receipt issued by such authority (or other evidence
satisfactory to the Administrative Agent) evidencing the payment of all amounts
so required to be deducted or withheld from such payment.

 

(c)           If any Lender or the Administrative Agent
is required by law to make any payments of any Taxes on or in relation to any
amounts received or receivable hereunder or under any other Loan Document, or
any Tax is assessed against a Lender or the Administrative Agent with respect
to amounts received or receivable hereunder or under any other Loan Document,
the Company will indemnify such person against (i) such Tax (and any
reasonable counsel fees and expenses associated with such Tax) and (ii) any
taxes imposed as a result of the receipt of the payment under this Section 7.6(c).  A certificate prepared in good faith as to
the 

 

45

 

amount of such payment by such Lender or the
Administrative Agent shall, absent manifest error, be final, conclusive, and
binding on all parties.

 

(d)           (i)            To the extent permitted by applicable law, each Lender
that is not a United States person within the meaning of Code section
7701(a)(30) (a “Non-U.S.  Participant”)
shall deliver to the Company and the Administrative Agent on or prior to the
Closing Date (or in the case of a Lender that is an Assignee, on the date of
such assignment to such Lender) two accurate and complete original signed
copies of IRS Form W-8BEN, W-8ECI, or W-8IMY (or any successor or other
applicable form prescribed by the IRS) certifying to such Lender’s entitlement
to a complete exemption from, or a reduced rate in, United States withholding
tax on interest payments to be made hereunder or any Loan.  If a Lender that is a Non-U.S. Participant is
claiming a complete exemption from withholding on interest pursuant to Sections
87 1(h) or 881(c) of the Code, the Lender shall deliver (along with
two accurate and complete original signed copies of IRS Form W-8BEN) a
certificate in form and substance reasonably acceptable to Administrative Agent
(any such certificate, a “Withholding Certificate”).  In addition, each Lender that is a
Non-U.S.  Participant agrees that from
time to time after the Closing Date, (or in the case of a Lender that is an
Assignee, after the date of the assignment to such Lender), when a lapse in
time (or change in circumstances occurs) renders the prior certificates
hereunder obsolete or inaccurate in any material respect, such Lender shall, to
the extent permitted under applicable law, deliver to the Company and the
Administrative Agent two new and accurate and complete original signed copies
of an IRS Form W-8BEN, W-8ECI, or W-8IMY (or any successor or other
applicable forms prescribed by the IRS), and if applicable, a new Withholding
Certificate, to confirm or establish the entitlement of such Lender or the
Administrative Agent to an exemption from, or reduction in, United States
withholding tax on interest payments to be made hereunder or any Loan.

 

(ii)           Each
Lender that is not a Non-U.S. Participant (other than any such Lender which is
taxed as a corporation for U.S. federal income tax purposes) shall provide two
properly completed and duly executed copies of IRS Form W-9 (or any
successor or other applicable form) to the Company and the Administrative Agent
certifying that such Lender is exempt from United States backup withholding
tax.  To the extent that a form provided
pursuant to this Section 7.6(d)(ii) is rendered obsolete or
inaccurate in any material respect as result of change in circumstances with
respect to the status of a Lender, such Lender shall, to the extent permitted
by applicable law, deliver to the Company and the Administrative Agent revised
forms necessary to confirm or establish the entitlement to such Lender’s or
Agent’s exemption from United States backup withholding tax.

 

(iii)          The
Company shall not be required to pay additional amounts to a Lender, or
indemnify any Lender, under this Section 7.6 to the extent that
such obligations would not have arisen but for the failure of such Lender to
comply with Section 7.6(d).

 

(iv)          Each
Lender agrees to indemnify the Administrative Agent and hold the Administrative
Agent harmless for the full amount of any and all present or future Taxes and
related liabilities (including penalties, interest, additions to tax and
expenses, and any Taxes imposed by any jurisdiction on amounts payable to the
Administrative Agent under 

 

46

 

this Section 7.6) which are imposed on or
with respect to principal, interest or fees payable to such Lender hereunder
and which are not paid by the Company pursuant to this Section 7.6,
whether or not such Taxes or related liabilities were correctly or legally
asserted.  This indemnification shall be
made within 30 days from the date the Administrative Agent makes written demand
therefore.

 

SECTION 8

 

INCREASED
COSTS; SPECIAL PROVISIONS FOR LIBOR LOANS

 

8.1          Increased Costs.

 

(a)           If, after the date hereof, the adoption
of, or any change in, any applicable law, rule or regulation, or any
change in the interpretation or administration of any applicable law, rule or
regulation by any governmental authority, central bank or comparable agency
charged with the interpretation or administration thereof, or compliance by any
Lender with any request or directive (whether or not having the force of law)
of any such authority, central bank or comparable agency: (i) shall
impose, modify or deem applicable any reserve (including any reserve imposed by
the FRB, but excluding any reserve included in the determination of the LIBOR
Rate pursuant to Section 4), special deposit or similar requirement
against assets of, deposits with or for the account of, or credit extended by
any Lender; or (ii) shall impose on any Lender any other condition
affecting its LIBOR Loans, its Note or its obligation to make LIBOR Loans; and
the result of anything described in clauses (i) and (ii) above is to
increase the cost to (or to impose a cost on) such Lender (or any LIBOR Office
of such Lender) of making or maintaining any LIBOR Loan, or to reduce the
amount of any sum received or receivable by such Lender (or its LIBOR Office)
under this Agreement or under its Note with respect thereto, then upon demand
by such Lender (which demand shall be accompanied by a statement setting forth
the basis for such demand and a calculation of the amount thereof in reasonable
detail, a copy of which shall be furnished to the Administrative Agent), the
Company shall pay directly to such Lender such additional amount as will
compensate such Lender for such increased cost or such reduction, so long as
such amounts have accrued on or after the day which is 180 days prior to the
date on which such Lender first made demand therefor.

 

(b)           If any Lender shall reasonably determine
that any change in, or the adoption or phase-in of, any applicable law, rule or
regulation regarding capital adequacy, or any change in the interpretation or
administration thereof by any governmental authority, central bank or
comparable agency charged with the interpretation or administration thereof, or
the compliance by any Lender or any Person controlling such 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 or
would have the effect of reducing the rate of return on such Lender’s or such
controlling Person’s capital as a consequence of such Lender’s obligations
hereunder or under any Letter of Credit or Existing Letter of Credit to a level
below that which such Lender or such controlling Person could have achieved but
for such change, adoption, phase-in or compliance (taking into consideration
such Lender’s or such controlling Person’s policies with respect to capital
adequacy) by an amount deemed by such Lender or such controlling Person to 

 

47

 

be material, then from time to time, upon demand by
such Lender (which demand shall be accompanied by a statement setting forth the
basis for such demand and a calculation of the amount thereof in reasonable
detail, a copy of which shall be furnished to the Administrative Agent), the
Company shall pay to such Lender such additional amount as will compensate such
Lender or such controlling Person for such reduction so long as such amounts
have accrued on or after the day which is 180 days prior to the date on which
such Lender first made demand therefor.

 

8.2          Basis for Determining Interest Rate
Inadequate or Unfair.

 

If

 

(a)           the Administrative Agent reasonably
determines (which determination shall be binding and conclusive on the Company)
that by reason of circumstances affecting the interbank LIBOR market adequate
and reasonable means do not exist for ascertaining the applicable LIBOR Rate;
or

 

(b)           the
Required Lenders advise the Administrative Agent that the LIBOR Rate as
determined by the Administrative Agent for any Interest Period will not
adequately and fairly reflect the cost to such Lenders of maintaining or
funding LIBOR Loans for such Interest Period (taking into account any amount to
which such Lenders may be entitled under Section 8.1) or that the
making or funding of LIBOR Loans has become impracticable as a result of an
event occurring after the date of this Agreement which in the opinion of such
Lenders materially affects such Loans;

 

then the Administrative Agent shall promptly notify the
other parties thereof and, so long as such circumstances shall continue, (i) no
Lender shall be under any obligation to make or convert any Base Rate Loans
into LIBOR Loans and (ii) on the last day of the current Interest Period
for each LIBOR Loan, such Loan shall, unless then repaid in full, automatically
convert to a Base Rate Loan.

 

8.3          Changes in Law Rendering LIBOR Loans
Unlawful.

 

If any
change in, or the adoption of any new, law or regulation, or any change in the
interpretation of any applicable law or regulation by any governmental or other
regulatory body charged with the administration thereof, should make it (in the
good faith judgment of any Lender) unlawful for any Lender to make, maintain or
fund LIBOR Loans, then such Lender shall promptly notify each of the other
parties hereto and, so long as such circumstances shall continue, (a) such
Lender shall have no obligation to make or convert any Base Rate Loan into a
LIBOR Loan (but shall make Base Rate Loans concurrently with the making of or
conversion of Base Rate Loans into LIBOR Loans by the Lenders which are not so
affected, in each case in an amount equal to the amount of LIBOR Loans which
would be made or converted into by such Lender at such time in the absence of
such circumstances) and (b) on the last day of the current Interest Period
for each LIBOR Loan of such Lender (or, in any event, on such earlier date as
may be required by the relevant law, regulation or interpretation), such LIBOR
Loan shall, unless then repaid in full, automatically convert to a Base Rate
Loan.  Each Base Rate Loan 

 

48

 

made by a Lender which, but for the circumstances
described in the foregoing sentence, would be a LIBOR Loan (an “Affected
Loan”) shall remain outstanding for the period corresponding to the group
of LIBOR Loans of which such Affected Loan would be a part absent such
circumstances.

 

8.4          Funding Losses.

 

The
Company hereby agrees that upon written demand by any Lender (which demand
shall be accompanied by a statement setting forth in reasonable detail the
basis for the amount being claimed, a copy of which shall be furnished to the
Administrative Agent), the Company will indemnify such Lender against any net
loss or expense which such Lender may sustain or incur (including any net loss
or expense incurred by reason of the liquidation or reemployment of deposits or
other funds acquired by such Lender to fund or maintain any LIBOR Loan), as
reasonably determined by such Lender, as a result of (a) any payment,
prepayment or conversion of any LIBOR Loan of such Lender on a date other than
the last day of an Interest Period for such Loan (including any conversion
pursuant to Section 8.3) or (b) any failure of the Company to
borrow, convert or continue any Loan on a date specified therefor in a Loan
Notice pursuant to this Agreement; provided that written notice of such loss is
given to the Company within 180 days of its incurrence.  For this purpose, all notices to the
Administrative Agent pursuant to this Agreement shall be deemed to be
irrevocable.

 

8.5          Right of Lenders to Fund through Other
Offices.

 

Each
Lender may, if it so elects, fulfill its commitment as to any LIBOR Loan by
causing a foreign branch or Affiliate of such Lender to make such Loan; provided
that in such event for the purposes of this Agreement such Loan shall be deemed
to have been made by such Lender and the obligation of the Company to repay
such Loan shall nevertheless be to such Lender and shall be deemed held by it,
to the extent of such Loan, for the account of such branch or Affiliate.

 

8.6          Discretion of Lenders as to Manner of
Funding.

 

Notwithstanding
any provision of this Agreement to the contrary, except with regard to the
obligation to mitigate increased costs, each Lender shall be entitled to fund
and maintain its funding of all or any part of its Loans in any manner it sees
fit, it being understood, however, that for the purposes of this Agreement all
determinations hereunder shall be made as if such Lender had actually funded
and maintained each LIBOR Loan during each Interest Period for such Loan
through the purchase of deposits having a maturity corresponding to such
Interest Period and bearing an interest rate equal to the LIBOR Rate for such
Interest Period.

 

8.7          Mitigation of Circumstances; Replacement
of Lenders.

 

(a)           Each
Lender shall promptly notify the Company and the Administrative Agent of any
event of which it has knowledge which will result in, and will use reasonable
commercial efforts available to it (and not, in such Lender’s reasonable good
faith judgment, otherwise disadvantageous to such Lender) to mitigate or avoid,
(i) any obligation by the Company to pay any amount pursuant to Section 7.6
or 8.1 or (ii) the occurrence of any circumstances described 

 

49

 

in Section 8.2 or (and, if any Lender has
given notice of any such event described in clause (i) or (ii) above
and thereafter such event ceases to exist, such Lender shall promptly so notify
the Company and the Administrative Agent). 
Without limiting the foregoing, each Lender will designate a different
funding office if such designation will avoid (or reduce the cost to the
Company of) any event described in clause (i) or (ii) above and such
designation will not, in such Lender’s reasonable good faith judgment, be
otherwise disadvantageous to such Lender.

 

(b)           If
(i) the Company becomes obligated to pay additional amounts to any Lender
pursuant to Section 7.6 or 8.1 or (ii) any Lender gives
notice of the occurrence of any circumstances described in Section 8.2
or 8.3  or (iii) a Lender (a “Non-Consenting
Lender”) does not consent to a proposed change, waiver, discharge or
termination with respect to any Loan Document that has been approved by the Required
Lenders as provided in Section 15.1 but requires unanimous consent of all
Lenders or all Lenders directly affected thereby (as applicable) or (iv) any
Lender becomes a Defaulting Lender, the Company may designate another bank
which is acceptable to the Administrative Agent and the Issuing Lenders in
their reasonable discretion (such other bank being called a “Replacement
Lender”) to purchase the Loans of such Lender and such Lender’s rights
hereunder, without recourse to or warranty by, or expense to, such Lender, for
a purchase price equal to the outstanding principal amount of the Loans payable
to such Lender plus any accrued but unpaid interest on such Loans and all
accrued but unpaid fees owed to such Lender and any other amounts payable to
such Lender under this Agreement, and to assume all the obligations of such
Lender hereunder, and, upon such purchase and assumption (pursuant to an
Assignment Agreement), such Lender shall no longer be a party hereto or have
any rights hereunder (other than rights with respect to indemnities and similar
rights applicable to such Lender prior to the date of such purchase and
assumption) and shall be relieved from all obligations to the Company
hereunder, and the Replacement Lender shall succeed to the rights and obligations
of such Lender hereunder.  In the case of
any assignment resulting from a Non-Consenting Lender’s failure to consent to a
proposed change, waiver, discharge or termination with respect to any Loan
Document, it is required that (a) the applicable Replacement Lender
consents to the proposed change, waiver, discharge or termination and (b) to
the extent such Non-Consenting Lender is an Issuing Lender that has issued
Letters of Credit hereunder that remain outstanding at such time, such Letters
of Credit have been returned to such Non-Consenting Lender; provided that the
failure by such Non-Consenting Lender to execute and deliver an Assignment
Agreement shall not impair the validity of the removal of such Non-Consenting
Lender and the mandatory assignment of such Non-Consenting Lender’s Commitments
and outstanding Loans and participations in Letters of Credit in pursuant to
this Section 8.7 shall nevertheless be effective without the execution by
such Non-Consenting Lender of an Assignment Agreement.

 

8.8          Conclusiveness of Statements; Survival of
Provisions.

 

Determinations
and statements of any Lender pursuant to Section 8.1, 8.2, 8.3
or 8.4 shall be conclusive absent demonstrable error.  Lenders may use reasonable averaging and
attribution methods in determining compensation under Sections 8.1 and,
and the provisions of such Sections shall survive repayment of the Obligations,
cancellation of any Notes, expiration or termination of the Letters of Credit
and/or Existing Letters of Credit and termination of this Agreement.

 

50

 

SECTION 9

 

REPRESENTATIONS
AND WARRANTIES

 

To
induce the Administrative Agent, the Collateral Agent and the Lenders to enter
into this Agreement and to induce the Lenders to make Loans and issue and
participate in Letters of Credit and Existing Letters of Credit hereunder, the
Company represents and warrants to the Administrative Agent, the Collateral
Agent and the Lenders that:

 

9.1          Organization.

 

Each
Loan Party and each Guarantor is validly existing and in good standing under
the laws of its jurisdiction of organization; and each Loan Party is duly
qualified to do business in each jurisdiction where, because of the nature of
its activities or properties, such qualification is required, except for such
jurisdictions where the failure to so qualify could not reasonably be expected
to have a Material Adverse Effect.

 

9.2          Authorization; No Conflict.

 

Each
Loan Party and each Guarantor is duly authorized to execute and deliver each
Loan Document to which it is a party, the Company is duly authorized to borrow monies
hereunder and each Loan Party and each Guarantor is duly authorized to perform
its Obligations under each Loan Document to which it is a party.  The execution, delivery and performance by
each Loan Party and each Guarantor of each Loan Document to which it is a
party, and the borrowings by the Company hereunder, do not and will not (a) require
any consent or approval of any governmental agency or authority (other than any
consent or approval which has been obtained and is in full force and effect), (b) conflict
with (i) any provision of law, (ii) the charter, by-laws or other
organizational documents of any Loan Party or Guarantor or (iii) any
agreement, indenture, instrument or other document, or any judgment, order or
decree, which is binding upon any Loan Party or Guarantor or any of their
respective properties or (c) require, or result in, the creation or
imposition of any Lien on any asset of any Loan Party or Guarantor (other than
Liens in favor of the Collateral Agent created pursuant to the Collateral
Documents).

 

9.3          Validity and Binding Nature.

 

Each
of this Agreement and each other Loan Document to which any Loan Party is a
party is the legal, valid and binding obligation of such Person, enforceable
against such Person in accordance with its terms, subject to bankruptcy,
insolvency and similar laws affecting the enforceability of creditors’ rights
generally and to general principles of equity.

 

9.4          Financial Condition.

 

The
audited consolidated financial statements of the Company and its Subsidiaries
as at December 31, 2007 and the unaudited consolidated financial
statements of the Company and the 

 

51

 

Subsidiaries as at March 31, 2008, copies of each
of which have been delivered to each Lender, were prepared in accordance with
GAAP (subject, in the case of such unaudited statements, to the absence of
footnotes and to normal year-end adjustments) and present fairly in all
material respects the consolidated financial condition of the Company and its
Subsidiaries as at such dates and the results of their operations for the
periods then ended.

 

9.5          No Material Adverse Change.

 

Since December 31,
2007, there has been no event or circumstance, either individually or in the
aggregate, that has had or could reasonably be expected to have a Material
Adverse Effect.

 

9.6          Litigation and Contingent Liabilities.

 

No
litigation (including derivative actions), arbitration proceeding or
governmental investigation or proceeding is pending or, to the Company’s knowledge,
threatened, against any Loan Party or Guarantor which could reasonably be
expected to have a Material Adverse Effect, except as set forth in Schedule
9.6.  Other than any liability
incident to such litigation or proceedings, no Loan Party or Guarantor has any
material contingent liabilities not listed on Schedule 9.6 or permitted
by Section 11.1 that could reasonably be expected to result in a
Material Adverse Effect.

 

9.7          Ownership of Properties; Liens.

 

Each
Loan Party and each Guarantor owns good and, in the case of real property,
marketable title to all of its properties and assets, real and personal,
tangible and intangible, of any nature whatsoever (including patents,
trademarks, trade names, service marks and copyrights), free and clear of all
Liens, charges and claims (including infringement claims with respect to
patents, trademarks, service marks, copyrights and the like) except Permitted
Liens.

 

9.8          Equity Ownership; Subsidiaries.

 

Except
as otherwise set forth on Schedule 9.8, all issued and outstanding
Capital Securities of each Subsidiary and Joint Venture are duly authorized and
validly issued, fully paid, non-assessable, and (in the case of Subsidiaries
and Joint Ventures) free and clear of all Liens other than those in favor of
the Collateral Agent, and such securities were issued in compliance with all
applicable state and federal laws concerning the issuance of securities.  Schedule 9.8 sets forth the authorized
Capital Securities and jurisdiction of organization of each Subsidiary and
Joint Venture as of the Closing Date. 
All of the issued and outstanding Capital Securities of each
Wholly-Owned Subsidiary are, directly or indirectly, owned by the Company.  As of the Closing Date, except as set forth
on Schedule 9.8, there are no pre-emptive or other outstanding rights,
options, warrants, conversion rights or other similar agreements or
understandings for the purchase or acquisition of any Capital Securities of any
Subsidiary.

 

52

 

9.9                               Pension Plans.

 

(a)           The
Unfunded Liability of all Pension Plans does not in the aggregate exceed twenty
percent of the Total Plan Liability for all such Pension Plans.  Each Pension Plan complies in all material
respects with all applicable requirements of law and regulations.  No contribution failure under Section 412
of the Code, Section 302 of ERISA or the terms of any Pension Plan has
occurred with respect to any Pension Plan, sufficient to give rise to a Lien
under Section 3 02(f) of ERISA, or otherwise to have a Material
Adverse Effect.  There are no pending or,
to the knowledge of Company, threatened, claims, actions, investigations or
lawsuits against any Pension Plan, any fiduciary of any Pension Plan, or Company
or other any member of the Controlled Group with respect to a Pension Plan or a
Multiemployer Pension Plan which could reasonably be expected to have a
Material Adverse Effect.  Neither the
Company nor any other member of the Controlled Group has engaged in any
prohibited transaction (as defined in Section 4975 of the Code or Section 406
of ERISA) in connection with any Pension Plan or Multiemployer Pension Plan
which could reasonably be expected to have a Material Adverse Effect.  Within the past five years, neither the
Company nor any other member of the Controlled Group has engaged in a
transaction which resulted in a Pension Plan with an Unfunded Liability being
transferred out of the Controlled Group, which could reasonably be expected to
have a Material Adverse Effect.  No
Termination Event has occurred or is reasonably expected to occur with respect
to any Pension Plan, which could reasonably be expected to have a Material
Adverse Effect.

 

(b)           All
contributions (if any) have been made to any Multiemployer Pension Plan that
are required to be made by the Company or any other member of the Controlled
Group under the terms of the plan or of any collective bargaining agreement or
by applicable law; neither the Company nor any other member of the Controlled
Group has withdrawn or partially withdrawn from any Multiemployer Pension Plan,
incurred any withdrawal liability with respect to any such plan or received
notice of any claim or demand for withdrawal liability or partial withdrawal
liability from any such plan, and no condition has occurred which, if
continued, could result in a withdrawal or partial withdrawal from any such
plan, if any such withdrawal could reasonably be expected to have a Material
Adverse Effect; and neither the Company nor any other member of the Controlled
Group has received any notice that any Multiemployer Pension Plan is in
reorganization, that increased contributions may be required to avoid a
reduction in plan benefits or the imposition of any excise tax if such
increased contributions could reasonably be expected to have a Material Adverse
Effect, that any such plan is or has been funded at a rate less than that
required under Section 412 of the Code, that any such plan is or may be
terminated, or that any such plan is or may become insolvent.

 

9.10                        Investment Company Act.

 

No
Loan Party is an “investment company” or a company “controlled” by an “investment
company” or a “subsidiary” of an “investment company,” within the meaning of
the Investment Company Act of 1940.

 

53

 

9.11        Regulation U.

 

The
Company is not engaged principally, or as one of its important activities, in
the business of extending credit for the purpose of purchasing or carrying
Margin Stock.

 

9.12        Taxes.

 

Each
Loan Party has timely filed all tax returns and reports required by law to have
been filed by it and has paid all taxes and governmental charges due and
payable with respect to such return, except any such taxes or charges which are
being diligently contested in good faith by appropriate proceedings and for
which adequate reserves in accordance with GAAP shall have been set aside on
its books.  The Loan Parties have made
adequate reserves on their books and records in accordance with GAAP for all
taxes that have accrued but which are not yet due and payable.  No Loan Party has participated in any
transaction that relates to a year of the taxpayer (which is still open under
the applicable statute of limitations) which is a “reportable transaction”
within the meaning of Treasury Regulation Section 1.601 l-4(b)(2) (irrespective
of the date when the transaction was entered into).

 

9.13        Solvency, etc.

 

On the
Closing Date, and immediately prior to and after giving effect to the issuance
of each Letter of Credit, participation in each Existing Letter of Credit and
each borrowing hereunder and the use of the proceeds thereof, with respect to
each Loan Party, individually, (a) the fair value of its assets is greater
than the amount of its liabilities (including disputed, contingent and
unliquidated liabilities) as such value is established and liabilities
evaluated on a going concern basis in accordance with GAAP, (b) the
present fair saleable value of its assets is not less than the amount that will
be required to pay the probable liability on its debts as they become absolute
and matured, (c) it is able to realize upon its assets and pay its debts
and other liabilities (including disputed, contingent and unliquidated
liabilities) as they mature in the normal course of business, (d) it does
not intend to, and does not believe that it will, incur debts or liabilities
beyond its ability to pay as such debts and liabilities mature and (e) it
is not engaged in business or a transaction, and is not about to engage in
business or a transaction, for which its property would constitute unreasonably
small capital.

 

9.14        Environmental Matters.

 

The
on-going operations of the Company, its Subsidiaries and the Joint Ventures
comply in all respects with all Environmental Laws, except such non-compliance
which could not (if enforced in accordance with applicable law) reasonably be
expected to result, either individually or in the aggregate, in a Material
Adverse Effect.  Each of the Company, its
Subsidiaries and the Joint Ventures has obtained, and maintained in good
standing, all licenses, permits, authorizations, registrations and other
approvals required under any Environmental Law and required for their
respective ordinary course operations, and for their reasonably anticipated
future operations, and each of the Company, its Subsidiaries and the Joint
Ventures is in compliance with all terms and conditions thereof, except where
the failure to do so could not reasonably be expected to result in material
liability to any of the Company, its Subsidiaries and 

 

54

 

the Joint Ventures and could not reasonably be
expected to result, either individually or in the aggregate, in a Material
Adverse Effect.  None of the Company, its
Subsidiaries or the Joint Ventures or any of its properties or operations is
subject to, or reasonably anticipates the issuance of, any written order from
or agreement with any Federal, state or local governmental authority, nor
subject to any judicial or docketed administrative or other proceeding,
respecting any Environmental Law, Environmental Claim or Hazardous
Substance.  There are no Hazardous
Substances or other conditions or circumstances existing with respect to any
property, arising from operations prior to the Closing Date, or relating to any
waste disposal, of any of the Company, its Subsidiaries and the Joint Ventures
that would reasonably be expected to result, either individually or in the
aggregate, in a Material Adverse Effect. 
Except as listed on Schedule 9.14, none of the Company, its
Subsidiaries and the Joint Ventures owns or operates any underground storage
tanks that are not properly registered or permitted under applicable
Environmental Laws or that (i) at any time while any of the Company, its
Subsidiaries or the Joint Ventures has owned or operated them, and (ii) at
any time while any Person other than any of the Company, its Subsidiaries and
the Joint Ventures owned or operated them, to the Company’s best knowledge
without independent investigation or inquiry, have released, leaked, disposed
of or otherwise discharged Hazardous Substances.

 

9.15        Insurance.

 

Set
forth on Schedule 9.15 is a complete and accurate summary of the
property and casualty insurance program of the Loan Parties as of the Closing
Date (including the names of all insurers, policy numbers, expiration dates,
amounts and types of coverage, annual premiums, deductibles, self-insured
retention, and a description in reasonable detail of any self-insurance
program, retrospective rating plan, fronting arrangement or other risk assumption
arrangement involving any Loan Party). 
Each Loan Party and its properties are insured with financially sound
and reputable insurance companies which are not Affiliates of the Loan Parties,
in such amounts, with such deductibles and covering such risks as are
customarily carried by companies engaged in similar businesses and owning
similar properties in localities where such Loan Parties operate.

 

9.16        Real Property; Facility Leases and Facility Management
Agreements.

 

Except
as set forth on Schedule 9.16, the Company does not, and its
Subsidiaries do not, own any real property. 
Schedule 9.16 also sets forth a listing of each Facility Lease
and each Facility Management Agreement to which the Company or any of its
Subsidiaries or Joint Ventures is a party as lessee or manager and specifies
the city and state where the parking facility subject to such lease or
management agreement is located.

 

9.17        Information.

 

All
information heretofore or contemporaneously herewith furnished in writing by
any Loan Party or Guarantor to the Administrative Agent or any Lender for
purposes of or in connection with this Agreement and the transactions
contemplated hereby is, and all written information hereafter furnished by or
on behalf of any Loan Party or Guarantor to the Administrative Agent or any
Lender pursuant hereto or in connection herewith will be, true and accurate in
every material respect on the date as of which such information is dated or
certified, 

 

55

 

and none of such information is or will be incomplete
by omitting to state any material fact necessary to make such information not
misleading in light of the circumstances under which made (it being recognized
by the Administrative Agent and the Lenders that any projections and forecasts
provided by the Company are based on good faith estimates and assumptions
believed by the Company to be reasonable as of the date of the applicable
projections or assumptions and that actual results during the period or periods
covered by any such projections and forecasts may differ from projected or
forecasted results).

 

9.18        Intellectual Property.

 

Each
Loan Party and each Guarantor owns and possesses or has a license or other
right to use all patents, patent rights, trademarks, trademark rights, trade
names, trade name rights, service marks, service mark rights and copyrights as
are necessary for the conduct of the businesses of the Loan Parties or
Guarantors, as applicable, without any infringement upon rights of others which
could reasonably be expected to have a Material Adverse Effect.

 

9.19        Burdensome Obligations.

 

No
Loan Party or Guarantor is a party to any agreement or contract or subject to
any restriction contained in its organizational documents which could reasonably
be expected to have a Material Adverse Effect.

 

9.20        Labor Matters.

 

Except
as set forth on Schedule 9.20, no Loan Party is subject to any labor or
collective bargaining agreement.  There
are no existing or threatened strikes, lockouts or other labor disputes
involving any Loan Party that singly or in the aggregate could reasonably be
expected to have a Material Adverse Effect. 
Hours worked by and payment made to employees of the Loan Parties are
not in violation in any material respect of the Fair Labor Standards Act or any
other applicable law, rule or regulation dealing with such matters.

 

9.21        No Default.

 

No
Event of Default or Unmatured Event of Default exists or would result from the
incurrence by any Loan Party or Guarantor of any Debt hereunder or under any
other Loan Document.

 

9.22        Subordinated Debt.

 

The
subordination provisions of the Subordinated Debt are enforceable against the
holders of the Subordinated Debt by the Administrative Agent and the
Lenders.  All Obligations constitute senior
Debt entitled to the benefits of the subordination provisions contained in the
Subordinated Debt.  The Company
acknowledges that the Administrative Agent and each Lender are entering into
this Agreement and are extending the Commitments and making the Loans in
reliance upon the subordination provisions of the Subordinated Debt and this Section 9.22.

 

56

 

SECTION 10

 

AFFIRMATIVE
COVENANTS

 

Until
the expiration or termination of the Commitments and thereafter until all
Obligations hereunder and under the other Loan Documents are paid in full and
all Letters of Credit and Existing Letters of Credit have been terminated, the
Company agrees that, unless at any time the Required Lenders shall otherwise
expressly consent in writing, it will:

 

10.1        Reports, Certificates and Other Information.

 

Furnish to the
Administrative Agent and each Lender:

 

10.1.1     Annual Report.

 

Promptly
when available and in any event within 90 days after the close of each Fiscal
Year: a copy of the annual audited financial statements of the Company and its
Subsidiaries for such Fiscal Year, including therein consolidated balance
sheets and statements of earnings and cash flows of the Company and its
Subsidiaries as at the end of such Fiscal Year, accompanied by a report and
opinion of Ernst & Young, or any of the four largest independent
certified public accounting firms in the United States, which report and
opinion shall not be subject to any “going concern” or like qualification or
exception.

 

10.1.2     Interim Reports.

 

Upon
filing with the SEC, and in any event within 45 days after the end of each
Fiscal Quarter, consolidated balance sheets of the Company and its Subsidiaries
as of the end of such Fiscal Quarter, together with consolidated statements of
earnings and cash flows for such Fiscal Quarter and for the period beginning
with the first day of such Fiscal Year and ending on the last day of such
Fiscal Quarter, together with a comparison of such financial statements with
the corresponding period of the previous Fiscal Year, certified by a Senior
Officer of the Company as having been prepared in accordance with GAAP (subject
to the absence of footnotes and year-end audit adjustments).

 

10.1.3     Compliance Certificates.

 

Contemporaneously
with the furnishing of a copy of each annual audit report pursuant to Section 10.1.1
and each set of quarterly statements pursuant to Section 10.1.2, a
duly completed compliance certificate in the form of Exhibit B, with
appropriate insertions, dated the date of such annual report or such quarterly
statements and signed by a Senior Officer of the Company, containing a
computation of each of the financial ratios and restrictions set forth in Section 11.13
and to the effect that such officer has not become aware of any Event of 

 

57

 

Default or Unmatured Event of Default that has
occurred and is continuing or, if there is any such event, describing it and
the steps, if any, being taken to cure it.

 

10.1.4      Reports to the SEC and to Shareholders.

 

Promptly
upon the filing or sending thereof (unless such documents, reports or
communications are publicly available on the SEC’s internet website), copies of
all regular, periodic or special reports of any Loan Party filed with the SEC;
copies of all registration statements of any Loan Party filed with the SEC
(other than on Form S-8); and copies of all proxy statements, financial
statements or other communications made to security holders generally, or filed
with any securities exchange.

 

10.1.5     Notice of Default, Litigation and ERISA
Matters.

 

Within
5 Business Days, after becoming aware of any of the following, written notice
describing the same and the steps being taken by the Company or the Subsidiary
affected thereby with respect thereto:

 

(a)           the occurrence of an Event of Default or
an Unmatured Event of Default;

 

(b)           any litigation, arbitration or
governmental investigation or proceeding not previously disclosed by the
Company to the Lenders which has been instituted or, to the knowledge of the
Company, is threatened against any Loan Party or to which any of the properties
of any thereof is subject which could reasonably be expected to have a Material
Adverse Effect;

 

(c)           the institution of any steps by any
member of the Controlled Group or any other Person to terminate any Pension
Plan in other than a standard termination, as defined under Title IV of ERISA,
or the failure of any member of the Controlled Group to make a required
contribution to any Pension Plan (if such failure is sufficient to give rise to
a Lien under Section 302(f) of ERISA) or to any Multiemployer Pension
Plan, or the taking of any action with respect to a Pension Plan which could
result in the requirement that the Company furnish a bond or other security to
the PBGC or such Pension Plan, or the occurrence of any event with respect to
any Pension Plan or Multiemployer Pension Plan which could result in the
incurrence by any member of the Controlled Group of any liability, fine or
penalty (including any claim or demand for withdrawal liability or partial
withdrawal from any Multiemployer Pension Plan), or any material increase in
the contingent liability of the Company with respect to any post-retirement
welfare benefit plan or other employee benefit plan of the Company or another
member of the Controlled Group, or any notice that any Multiemployer Pension
Plan is in reorganization, that increased contributions may be required to
avoid a reduction in plan benefits or the imposition of an excise tax if such
increased contributions could reasonably be expected to have a Material Adverse
Effect, that any such 

 

58

 

plan is or has been funded at a rate less than that
required under Section 412 of the Code, that any such plan is or may be
terminated in other than a standard termination, as defined under Title IV of
ERISA, or that any such plan is or may become insolvent, or the occurrence of a
Reportable Event as described in Section 4043(b) of ERISA including
without limitation those events as to which the thirty (30) day notice period
is waived under Part 2615 of the regulations promulgated by the PBGC under
ERISA;

 

(d)           any cancellation or material change in any insurance
maintained by any Loan Party, or the entering into any material contract or
undertaking that is not entered into in the ordinary course of business; or

 

(e)           any other event (including (i) any violation of
any Environmental Law or the assertion of any Environmental Claim or (ii) the
enactment or effectiveness of any law, rule or regulation) which might
reasonably be expected to have a Material Adverse Effect.

 

10.1.6     Management Reports.

 

Promptly
and in any event within 10 Business Days of receipt thereof, copies of all
detailed financial and management reports submitted to the Company by
independent auditors (other than any routine communications between the
independent auditors and the audit committee) in connection with each annual or
interim audit made by such auditors of the books of the Company or any of its
Subsidiaries.

 

10.1.7     Projections.

 

Not
later than January 31 of each Fiscal Year, financial projections for the
Company and its Subsidiaries for such Fiscal Year (including quarterly
operating and cash flow budgets) prepared in a manner consistent with the
projections delivered by the Company to the Lenders prior to the Closing Date
or otherwise in a manner reasonably satisfactory to the Administrative Agent,
accompanied by a certificate of a Senior Officer of the Company on behalf of
the Company to the effect that (a) such projections were prepared by the
Company in good faith, (b) the Company has a reasonable basis for the
assumptions contained in such projections and (c) such projections have
been prepared in accordance with such assumptions.  All parties hereto acknowledge that the
Company cannot and does not make any warranty or assurance that any such
projections will be attained.

 

10.1.8     Subordinated Debt Notices.

 

Promptly
following receipt, copies of (a) any notice of default or acceleration
received from any holder or trustee of, under or with respect to any
Subordinated Debt and (b) any amendment, waiver, consent of other
modification of any documentation governing any Subordinated Debt.

 

59

 

10.1.9               Other
Information.

 

Promptly from time to
time, such other information concerning the Loan Parties and the Guarantors as
any Lender or the Administrative Agent may reasonably request.

 

The Company hereby
acknowledges that (a) the Administrative Agent and/or BAS will make
available to the Lenders and the Issuing Lenders materials and/or information
provided by or on behalf of the Company hereunder (collectively, “Company
Materials”) by posting the Company Materials on IntraLinks or another
similar electronic system (the “Platform”) and (b) certain of the
Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to
receive material non-public information with respect to the Company or its
securities) (each, a “Public Lender”). 
The Company hereby agrees that it will use commercially reasonable
efforts to identify that portion of the Company Materials that may be
distributed to the Public Lenders and that (w) all such Company Materials
shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall
mean that the word “PUBLIC” shall appear prominently on the first page thereof;
(x) by marking Company Materials “PUBLIC,” the Company shall be deemed to
have authorized the Administrative Agent, BAS, the Issuing Lenders and the
Lenders to treat such Company Materials as not containing any material
non-public information (although it may be sensitive and proprietary) with
respect to the Company or its securities for purposes of United States Federal
and state securities laws (provided, however, that to the extent
such Company Materials constitute Information, they shall be treated as set
forth in Section 15.9); (y) all Company Materials marked “PUBLIC”
are permitted to be made available through a portion of the Platform designated
“Public Investor;” and (z) the Administrative Agent and BAS shall be
entitled to treat any Company Materials that are not marked “PUBLIC” as being
suitable only for posting on a portion of the Platform not designated “Public
Investor.”  Notwithstanding the foregoing, the Company shall be under no obligation
to mark any Company Materials “PUBLIC”.

 

10.2        Books, Records and
Inspections.

 

Keep, and cause
each other Loan Party and Guarantor to keep, its books and records in
accordance with sound business practices sufficient to allow the preparation of
financial statements in accordance with GAAP; permit, and cause each other Loan
Party and Guarantor to permit, at any reasonable time and with reasonable
notice (or at any time without notice if an Event of Default exists), any
Lender (at such Lender’s own expense) or the Administrative Agent or any
representative thereof (at the Administrative Agent’s own expense) to inspect
the properties and operations of the Loan Parties and the Guarantors; and
permit, and cause each other Loan Party to permit, at any reasonable time and
with reasonable notice (or at any time without notice if an Event of Default
exists), any Lender (at such Lender’s own expense) or the Administrative Agent
or any representative thereof (at the Administrative Agent’s own expense) to
visit any or all of its offices, to discuss its financial matters with its
officers and its independent auditors (and the Company hereby authorizes such
independent auditors to discuss such financial matters with any Lender or the
Administrative Agent or any representative thereof), and to examine (and, at
the expense of the Loan Parties and Guarantors, photocopy 

 

60

 

extracts from) any of its books or other records; and permit, and cause
each other Loan Party and Guarantor to permit, the Administrative Agent and its
representatives to inspect the Inventory and other tangible assets of the Loan
Parties and Guarantors, to perform appraisals of the equipment of the Loan
Parties and Guarantors, and to inspect, audit, check and make copies of and
extracts from the books, records, computer data, computer programs, journals,
orders, receipts, correspondence and other data relating to Inventory, Accounts
and any other collateral.  All such
inspections or audits by the Administrative Agent shall be at the
Administrative Agent’s expense, provided that so long as an Event of
Default exists, such inspections or audits shall be at the Company’s expense
and the Administrative Agent shall be able to perform as many inspections or
audits as it desires during any such Event of Default.

 

10.3        Maintenance of
Property; Insurance.

 

(a)           Keep,
and cause each other Loan Party and Guarantor to keep, all property useful and
necessary in the business of the Loan Parties and the Guarantors in good
working order and condition, ordinary wear and tear excepted, and from time to
time make, or cause to be made, all needful repairs, renewals, additions,
improvements and replacements thereto necessary in order that the business
carried on in connection therewith may be properly conducted at all times in
accordance with customary and prudent business practices for similar
businesses.

 

(b)           Maintain,
and cause each other Loan Party and Guarantor to maintain, with responsible
insurance companies, such insurance coverage as may be required by any law or
governmental regulation or court decree or order applicable to it (including,
without limitation, liability insurance for the directors and officers of such
Loan Party or Guarantor) and such other insurance, to such extent and against
such hazards and liabilities as is customarily maintained by companies
similarly situated, but which shall insure against all risks and liabilities of
the type identified on Schedule 9.15 and shall have insured amounts no
less than, and deductibles no higher than, those set forth on such schedule (as
such schedule may change upon the reasonable consent of the Administrative
Agent); and, upon request of the Administrative Agent or any Lender, furnish to
the Administrative Agent or such Lender a certificate setting forth in
reasonable detail the nature and extent of all insurance maintained by the Loan
Parties and the Guarantors.  The Company
shall cause each issuer of an insurance policy to provide the Collateral Agent
with an endorsement (i) showing the Collateral Agent as lender loss payee
or mortgagee, as applicable, with respect to each policy of property or
casualty insurance or business interruption insurance and naming the Collateral
Agent, for the benefit of the Lenders, as an additional insured with respect to
each policy of liability insurance, (ii) providing that 30 days’ notice
will be given to the Collateral Agent prior to any cancellation of, material
reduction or change in coverage provided by or other material modification to
such policy and (iii) reasonably acceptable in all other respects to the
Collateral Agent.

 

(c)           UNLESS
THE COMPANY PROVIDES THE ADMINISTRATIVE AGENT WITH EVIDENCE OF THE INSURANCE
COVERAGE REQUIRED BY THIS AGREEMENT, THE ADMINISTRATIVE AGENT MAY, FOLLOWING
PRIOR NOTICE TO THE COMPANY, PURCHASE INSURANCE AT THE COMPANY’S EXPENSE TO
PROTECT THE COLLATERAL AGENT’S AND THE LENDERS’ INTERESTS IN THE
COLLATERAL.  THIS INSURANCE MAY, BUT NEED
NOT, PROTECT ANY LOAN 

 

61

 

PARTY’S OR GUARANTOR’S INTERESTS. 
THE COVERAGE THAT THE ADMINISTRATIVE AGENT PURCHASES MAY NOT PAY
ANY CLAIM THAT IS MADE AGAINST ANY LOAN PARTY OR GUARANTOR IN CONNECTION WITH
THE COLLATERAL.  THE COMPANY MAY LATER
CANCEL ANY INSURANCE PURCHASED BY THE ADMINISTRATIVE AGENT, BUT ONLY AFTER
PROVIDING THE ADMINISTRATIVE AGENT WITH EVIDENCE THAT THE COMPANY HAS OBTAINED
INSURANCE AS REQUIRED BY THIS AGREEMENT. 
IF THE ADMINISTRATIVE AGENT PURCHASES INSURANCE FOR THE COLLATERAL, THE
COMPANY WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING INTEREST
AND ANY OTHER CHARGES THAT MAY BE IMPOSED WITH THE PLACEMENT OF THE
INSURANCE, UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR EXPIRATION OF THE
INSURANCE.  THE COSTS OF THE INSURANCE MAY BE
ADDED TO THE PRINCIPAL AMOUNT OF THE LOANS OWING HEREUNDER.  THE COSTS OF THE INSURANCE MAY BE MORE
THAN THE COST OF THE INSURANCE THE LOAN PARTIES AND GUARANTORS MAY BE ABLE
TO OBTAIN ON THEIR OWN.

 

10.4        Compliance with Laws;
Payment of Taxes and Liabilities.

 

(a)           Comply,
and cause each other Loan Party and Guarantor to comply, in all material
respects with all applicable laws, rules, regulations, decrees, orders,
judgments, licenses and permits, except where failure to comply could not
reasonably be expected to have a Material Adverse Effect; (b) without
limiting clause (a) above, ensure, and cause each other Loan Party
and Guarantor to ensure, that no person who owns a controlling interest in or
otherwise controls a Loan Party or Guarantor is or shall be (i) listed on
the Specially Designated Nationals and Blocked Person List maintained by the
Office of Foreign Assets Control (“OFAC”), Department of the Treasury, and/or
any other similar lists maintained by OFAC pursuant to any authorizing statute,
Executive Order or regulation or (ii) a person designated under Section 1(b),
(c) or (d) of Executive Order No.  13224 (September 23,
2001), any related enabling legislation or any other similar Executive Orders, (c) without
limiting clause (a) above, comply, and cause each other Loan Party
and Guarantor to comply, with all applicable Bank Secrecy Act (“BSA”) and
anti-money laundering laws and regulations and (d) pay, and cause each
other Loan Party and Guarantor to pay, prior to delinquency, all taxes and
other governmental charges against it or any collateral, as well as claims of
any kind which, if unpaid, could become a Lien (other than Permitted Liens) on
any of its property; provided that the foregoing shall not require any
Loan Party to pay any such tax or charge so long as it shall contest the
validity thereof in good faith by appropriate proceedings and shall set aside
on its books adequate reserves with respect thereto in accordance with GAAP
and, in the case of a claim which could become a Lien (other than a Permitted
Lien) on any collateral, such contest proceedings shall stay the foreclosure of
such Lien (other than a Permitted Lien) or the sale of any portion of the
collateral to satisfy such claim.

 

10.5        Maintenance of
Existence, etc.

 

(a)           Maintain
and preserve, and (subject to Section 11.5) cause each other Loan
Party and Guarantor to maintain and preserve, (i) its existence and good
standing in the jurisdiction of 

 

62

 

its organization, (ii) its qualification to do business and good
standing in each jurisdiction where the nature of its business makes such
qualification necessary (other than such jurisdictions in which the failure to
be qualified or in good standing could not reasonably be expected to have a
Material Adverse Effect, and other than in connection with any merger permitted
pursuant to Sections 11.4 or 11.6 other than any dissolution or
liquidations of any Subsidiary if the assets of such Subsidiary are transferred
to the Company or any Guarantor in connection with such dissolution or
liquidation) and (iii) the rights, licenses, permits (including those
required under applicable Environmental Laws), franchises, patents, copyrights,
trademarks and trade names material to the conduct of its businesses; provided,
however, that the Loan Parties and the Guarantors shall not be required to
preserve any such right, license or franchise, or its corporate, partnership or
other existence, if the Board of Directors of the Company shall determine that
the preservation thereof is no longer desirable in the conduct of the business
of the Company and its Subsidiaries and Guarantors, taken as a whole, and that
the loss thereof is not adverse in any material respect to the Administrative
Agent or the Lenders; and (b) defend all of the foregoing against all
claims, actions, demands, suits or proceedings at law or in equity or by or
before any governmental instrumentality or other agency or regulatory
authority.

 

10.6        Use of Proceeds.

 

Use the proceeds
of the Loans, and the Letters of Credit and Existing Letters of Credit, solely
to refinance existing indebtedness, for working capital purposes, for Permitted
Acquisitions, for Capital Expenditures, for Special Payments, and for other
general business purposes; and not use or permit any proceeds of any Loan to be
used, either directly or indirectly, for the purpose, whether immediate,
incidental or ultimate, of “purchasing or carrying” any Margin Stock in any manner that would constitute a
violation of Regulation U.

 

10.7        Employee Benefit Plans.

 

(a)           Maintain,
and use good faith efforts to cause each other member of the Controlled Group
to maintain, each Pension Plan in substantial compliance with all applicable
requirements of law and regulations.

 

(b)           Make,
and use good faith efforts to cause each other member of the Controlled Group
to make, on a timely basis, all required contributions to any Multiemployer
Pension Plan.

 

(c)           Not,
and use good faith efforts to not permit any other member of the Controlled
Group to (i) seek a waiver of the minimum funding standards of ERISA, (ii) terminate
or withdraw from any Pension Plan or Multiemployer Pension Plan, (iii) take
any other action with respect to any Pension Plan that would reasonably be
expected to entitle the PBGC to terminate, impose liability in respect of, or
cause a trustee to be appointed to administer, any Pension Plan, or (iv) permit
to occur a Reportable Event as described in Section 4043(b) of ERISA
including without limitation those events as to which the thirty (30) day
notice period is waived under Part 2615 of the regulations promulgated by
the PBGC under ERISA, unless the actions or events described in clauses (i),
(ii), (iii) and (iv) individually or in the aggregate would not have
a Material Adverse Effect.

 

63

 

10.8        Environmental Matters.

 

If any release or
threatened release or other disposal of Hazardous Substances shall occur or
shall have occurred on any real property or any other assets of any Loan Party
or Guarantor, the Company shall, or shall cause the applicable Loan Party or
Guarantor to, cause the prompt containment and removal of such Hazardous
Substances and the remediation of such real property or other assets as
necessary to comply with all Environmental Laws and to preserve the value of
such real property or other assets. 
Without limiting the generality of the foregoing, the Company shall, and
shall cause each other Loan Party and Guarantor to, comply with any Federal or
state judicial or administrative order requiring the performance at any real
property of any Loan Party or Guarantor of activities in response to the
release or threatened release of a Hazardous Substance.  To the extent that the transportation of
Hazardous Substances is permitted by this Agreement, the Company shall, and
shall cause its Subsidiaries to, dispose of such Hazardous Substances, or of
any other wastes, only at licensed disposal facilities operating in compliance
with Environmental Laws.

 

10.9        Further Assurances.

 

(a)           Within
30 days from the request therefor by the Administrative Agent, take, and cause
each other Loan Party and Guarantor to take, such actions as are necessary or
as the Administrative Agent or the Required Lenders may reasonably request from
time to time to give effect to the intent of, and to aid in the exercise and
enforcement of the rights and remedies of the Administrative Agent, the
Collateral Agent and the Lenders under the Loan Documents, and to ensure that the
Obligations of each Loan Party and Guarantor under the Loan Documents are
secured by substantially all of the assets of the Company, each Domestic
Subsidiary and each Joint Venture which meets the definition of a Guarantor (as
well as all Capital Securities of each Domestic Subsidiary and each such Joint
Venture and 65% of all Capital Securities of each direct Foreign Subsidiary)
and guaranteed by each Domestic Subsidiary and each Joint Venture which meets
the definition of a Guarantor (including, within 30 days after the acquisition
or creation thereof, any Domestic Subsidiary or Joint Venture acquired or
created after the Closing Date), in each case as the Administrative Agent may
determine, including without limitation (i) the execution and delivery of
guaranties, security agreements, pledge agreements, Mortgages, financing
statements and other documents, and the filing or recording of any of the
foregoing and (ii) the delivery of certificated securities and other
collateral with respect to which perfection is obtained by possession.  Notwithstanding the foregoing, the Company
shall not be required to pledge the Capital Stock of any future Domestic
Subsidiary so long as those entities do not have any assets or operations
valued in excess of $100,000.

 

(b)           The
Company shall notify the Lenders and the Administrative Agent, within ten (10) days
after the occurrence thereof, of the acquisition of any material property by
the Company or any Guarantor that is not subject to the existing Collateral
Documents, any Person becoming a Subsidiary or the creation of any Joint
Venture and any other event or condition, other than the passage of time, that
may require additional action of any nature in order to create or preserve the
effectiveness and perfected status of the liens and security interests of the
Lenders and the Collateral Agent with respect to such property pursuant to the
Collateral Documents, including without limitation delivering the originals of
all promissory notes and 

 

64

 

other instruments payable to the Company or any Guarantor to the
Collateral Agent, delivering the originals of all stock certificates or other
certificates evidencing the Capital Securities owned by the Company or any
Guarantor at any time, which are required by the foregoing Section 10.9(a) to
be pledged to the Collateral Agent for the benefit of the Lenders and cause any
new Subsidiary to become a Guarantor pursuant to the Guaranty and Collateral
Agreement.

 

SECTION 11

 

NEGATIVE COVENANTS

 

Until the expiration or
termination of the Commitments and thereafter until all Obligations (other than
contingent and unmatured indemnification obligations) hereunder and under the
other Loan Documents are paid in full and all Letters of Credit and Existing
Letters of Credit have been terminated, the Company agrees that, unless at any
time the Required Lenders shall otherwise expressly consent in writing, it
will:

 

11.1        Debt.

 

Not, and not permit any other Loan Party to, create,
incur, assume or suffer to exist any Debt, except:

 

(a)           Obligations
under this Agreement and the other Loan Documents;

 

(b)           Debt
of any Guarantor owing to the Company or to any other Guarantor; provided
that to the extent such Debt shall be evidenced by any note or instrument, such
instrument shall be a demand note in form and substance reasonably satisfactory
to the Collateral Agent and pledged and delivered to the Collateral Agent
pursuant to the Collateral Documents as additional collateral security for the
Obligations, and the obligations under such demand note shall be subordinated
to the Obligations of the Company hereunder in a manner reasonably satisfactory
to the Administrative Agent;

 

(c)           Subordinated
Debt, provided that (A) immediately before and after (on a pro forma basis
acceptable to the Administrative Agent and supported by such certificates
required by the Administrative Agent) the incurrence of any such Subordinated
Debt, no Unmatured Event of Default or Event of Default shall exist and the
Company shall be in pro forma compliance with all financial and other covenants
contained herein as of the date of incurrence of such Subordinated Debt and (B) all
agreements, documents and instruments relating to such Subordinated Debt shall
have been delivered to and approved by the Administrative Agent and the
Required Lenders prior to the incurrence of such Subordinated Debt;

 

(d)           Hedging
Obligations;

 

(e)           Debt
described on Schedule 11.1 and any extension, renewal or refinancing
thereof so long as the principal amount thereof is not increased (and as such
amount is reduced 

 

65

 

from time to time) and no modifications of the terms thereof which are
less favorable to the Company or more restrictive on the Company in any material
manner shall be permitted;

 

(f)            Contingent
Liabilities arising with respect to customary indemnification obligations in
favor of sellers in connection with Permitted Acquisitions and purchasers in
connection with dispositions permitted under Section 11.4;

 

(g)           Earnouts
with respect to Permitted Acquisitions made by the Company;

 

(h)           Trade
accounts payable and accrued expenses arising in the ordinary course which are
current or past due only in an amount which is not material in the aggregate
for the Company and its Subsidiaries on a consolidated basis, or which are
being contested in good faith by appropriate proceedings and for which adequate
reserves are maintained on the books of the Company;

 

(i)            Debt
which is non-recourse to the Company or its Subsidiaries, provided that the
aggregate amount of such non-recourse Indebtedness does not exceed $10,000,000
and such non-recourse terms and the other terms of such financing are
acceptable to the Administrative Agent;

 

(j)            Debt
incurred to finance insurance premiums in the ordinary course of business
consistent with past practices of the Company;

 

(k)           Debt
of Subsidiaries and Joint Ventures which are not Guarantors owing to the
Company or a Guarantor not exceeding an aggregate amount equal to the book
value of five percent (5%) of Total Assets; provided, that any such Debt shall
reduce, dollar for dollar, the available transactions permitted by Section 11.6(g);

 

(l)            Debt
represented by the subtraction of Adjusted Off-Balance Sheet Liabilities from
Off-Balance Sheet Liabilities;

 

(m)          Debt
(other than Debt to the Principals) other than as described in clauses (a) through
(l) above and (o) below not exceeding an aggregate amount equal to
the book value of five percent (5%) of Total Assets, provided that not more than
50% of the Debt incurred or otherwise outstanding pursuant to this clause (m) may
be secured by Permitted Liens;

 

(n)           Debt
which may otherwise be permitted pursuant to Section 11.6; and

 

(o)           Debt
arising from Ordinary Course Capital Leases.

 

11.2        Liens.

 

Not, and not
permit any other Loan Party to, create or permit to exist any Lien on any of
its real or personal properties, assets or rights of whatsoever nature (whether
now owned or hereafter acquired), except:

 

(a)           Liens
arising under the Loan Documents;

 

66

 

(b)           Liens
imposed by law (other than liens imposed by ERISA or Section 412 of the
Code), carriers’, warehousemen’s or mechanic’s Liens, operators’ or drillers’
Liens and Liens to secure claims for labor, material or supplies arising in the
ordinary course of business, but only to the extent that payment thereof shall
not at the time be due or shall be contested in good faith by appropriate
proceedings diligently conducted, with respect to which appropriate reserves
have been set aside and as to which there has been no seizure of or foreclosure
upon assets subject to such Liens;

 

(c)           deposits
or pledges to secure payment of worker’s compensation, unemployment insurance,
old age pensions or other social security, or to secure the performance of
bids, tenders, contracts (other than those relating to borrowed money) or
leases or to secure statutory obligations or surety or appeal bonds, or to
secure indemnity, performance or other similar bonds in the ordinary course of
business, or in connection with contests, to the extent that payment thereof
shall not at the time be due or shall be contested in good faith by appropriate
proceedings diligently conducted and there have been set aside on its books
appropriate reserves with respect thereto;

 

(d)           Liens
securing taxes, assessments, levies or other governmental charges which are not
overdue or which, in an amount not exceeding $2,000,000 in the aggregate, are
being contested in good faith by appropriate proceedings diligently conducted,
with respect to which reasonable reserves have been set aside and as to which
there has been no seizure of or foreclosure upon assets subject to the Liens;

 

(e)           Liens
consisting of encumbrances, easements or reservations of, or rights of others
for, rights-of-way, sewers, electric lines, telecommunications lines and other
similar purposes, zoning restrictions, restrictions on the use of real property
and minor defects and irregularities in the title thereto, and other similar
encumbrances, none of which in the reasonable opinion of the Administrative
Agent interferes with the use of the property subject thereto by the Company or
such Subsidiary in the ordinary conduct of its business;

 

(f)            Liens
described on Schedule 11.2 as of the Closing Date, and any extensions or
renewals of the foregoing, provided that neither the Debt secured by any such
existing Liens nor the property subject thereto shall increase;

 

(g)           Liens
on the daily revenues in favor of Persons other than the Company or its
Affiliates who are parties to the Facility Leases and Facility Management
Agreements for the amounts due to them pursuant thereto;

 

(h)           purported
Liens in the ordinary course of business on fixtures to the extent applicable
law permits a mortgagee to claim an interest therein, provided that such
purported Liens do not secure any Debt of the Company or any of its Affiliates;

 

(i)            any
Lien created to secure payment of a portion of the purchase price of, or
existing at the time of acquisition of, any tangible fixed asset (including
Liens granted in connection with Ordinary Course Capital Leases) acquired by
the Company or any of its 

 

67

 

Subsidiaries, may be created or suffer to exist upon such tangible
fixed asset if the outstanding principal amount of the Debt secured by such
Lien does not exceed the purchase price paid by the Company or such Subsidiary
for such tangible fixed asset provided that (i) such Lien does not
encumber any other asset at any time owned by the Company or such Subsidiary, (ii) not
more than one such Lien shall encumber such tangible fixed asset at any one
time, and (iii) the aggregate amount of Debt secured by all such Liens
shall not exceed the amounts permitted by Sections 11.1(e) and (m)

 

(j)            Liens
on unearned insurance premiums to secure Debt referred to in Section 11.1(k)

 

(k)           Liens
arising by applicable law in respect of employees’ wages, salaries or
commissions not overdue; and

 

(l)            Liens
arising out of judgments or awards not exceeding $2,000,000 in the aggregate
against the Company or its Subsidiaries with respect to which the Company or
such Subsidiary shall be in good faith prosecuting an appeal or a proceeding or
review and the enforcement of such Lien is stayed pending such appeal or
review.

 

11.3        Restricted Payments.

 

Not, and not
permit any other Loan Party to, make, pay, declare, or authorize any dividend,
payment or other distribution in respect of any class of its Capital Securities
or any dividend, payment or distribution in connection with the redemption,
purchase, retirement or other acquisition, directly or indirectly, of any
shares of its Capital Securities, other than such dividends, payments or other
distributions made (i) to the extent payable solely in shares of Capital
Securities (other than Disqualified Stock) of the Company, (ii) as
permitted pursuant to Section 11.6, or (iii) to the extent
that the same constitute Special Payments made in compliance with the
definition of such term.  The Company
will not issue Disqualified Stock.

 

11.4        Mergers,
Consolidations, Sales.

 

(a)           Not,
and not permit any other Loan Party to, make any Acquisition; nor merge or
consolidate or amalgamate with any other Person or take any other action having
a similar effect, nor enter into any joint venture or similar arrangement with
any other Person, except (i) any Acquisition by the Company or any
Guarantor where (collectively, “Permitted Acquisitions”):

 

(A)        the
business or division acquired are for use, or the Person acquired is engaged,
in businesses similar to those engaged in by the Loan Parties on the Closing
Date;

 

(B)         immediately
before and after giving effect to such Acquisition, no Event of Default or
Unmatured Event of Default shall exist;

 

(C)         the
aggregate consideration to be paid by the Loan Parties (including any Debt
assumed or issued in connection therewith, the amount thereof to be calculated
in accordance with GAAP) in connection with such Acquisition (or any series of
related 

 

68

 

Acquisitions) shall not exceed $10,000,000, and all
such Acquisitions in any Fiscal Year shall not exceed $25,000,000;

 

(D)         immediately
after giving effect to such Acquisition, the Company is in pro forma compliance
with all the financial ratios and restrictions set forth in Section 11.13;

 

(E)         in
the case of the Acquisition of any Person, the Board of Directors of such
Person has approved such Acquisition;

 

(F)         after
giving effect to any Acquisition and after giving effect to the working capital
needs of the acquired business, the Revolving Loan Availability shall equal or
exceed $7,000,000;

 

(G)         with
respect to any Acquisition in which the aggregate consideration paid by the
Loan Parties exceeds $5,000,000, within 10 Business Days of such Acquisition,
the Administrative Agent shall have received complete executed or conformed
copies of each material document, instrument and agreement to be executed in
connection with such Acquisition together with all lien search reports and lien
release letters and other documents as the Administrative Agent may require to
evidence the termination of Liens on the assets or business to be acquired,
provided that the Lien termination may occur simultaneously with the closing of
such Acquisition;

 

(H)         with
respect to any Acquisition in which the aggregate consideration paid by the
Loan Parties exceeds $5,000,000, not less than ten Business Days prior to such
Acquisition, the Administrative Agent shall have received an acquisition
summary with respect to the Person and/or business or division to be acquired,
such summary to include a reasonably detailed description thereof (including
financial information) and operating results (including financial statements
for the most recent 12 month period for which they are available and as
otherwise available), the material terms and conditions, including economic
terms, of the proposed Acquisition, and the Company’s calculation of pro forma
EBITDA relating thereto;

 

(I)          with
respect to any Acquisition in which the aggregate consideration paid by the
Loan Parties exceeds $5,000,000, the Administrative Agent and Required Lenders
shall have approved (such approval not to be unreasonably withheld) the Company’s
computation of pro forma EBITDA after giving effect to such Acquisition; and

 

(J)          with
respect to any Acquisition in which the aggregate consideration paid by the
Loan Parties exceeds $5,000,000, consents have been obtained in favor of the
Collateral Agent and the Lenders to the collateral assignment of rights and
indemnities under the related acquisition documents and opinions of counsel for
the Loan Parties and (if delivered to the Loan Party) the selling party in
favor of the Collateral Agent and the Lenders have been delivered;

 

and (ii) as maybe otherwise permitted pursuant to
Sections 11.6, 11.10(b) and 11.10(1).

 

(b)           Sell,
lease, license, transfer, assign or otherwise dispose of all or any portion of
its business, assets, rights, revenues or property, real, personal or mixed,
tangible or intangible, 

 

69

 

whether in one or a series of transactions, other than inventory sold
in the ordinary course of business upon customary credit terms and sales of
material or equipment no longer useful in the business, and shall not permit or
suffer any Subsidiary to do any of the foregoing (an “Asset Disposition”)
provided, however, that this Section 11.4(b) shall not
prohibit any sale, lease, license, transfer, assignment or other disposition
otherwise permitted pursuant to Section 11.6 or if (i) the
aggregate book value (disregarding any write-downs of such book value other
than ordinary depreciation and amortization) of all of the business, assets,
rights, revenues and property disposed of after the Closing Date of this
Agreement (other than in reliance on clauses (ii) and (iii) below)
shall be less than 2% of the Total Assets at such time and if, immediately
before and after such transaction, no Unmatured Event of Default or Event of
Default shall exist, (ii) sales of equipment as to which proceeds are used
within 180 days to purchase equipment of at least equivalent value to those
sold and if, immediately before and after such transaction, no Unmatured Event
of Default or Event of Default shall exist, (iii) sales as to which
proceeds are used to make optional repayments on the Revolving Loans, provided
that such prepayments on the Revolving Loans shall also permanently reduce the
Revolving Commitment by the amount of such payments, (iv) investments
which consist of transfers of assets instead of cash and which are permitted by
Section 11.10 or (v) transfers of assets pursuant to a loan or
advance permitted pursuant to Section 11.10;  provided,
however, in the case of any of the foregoing permitted sales, leases, licenses,
transfers, assignments or other dispositions described in clauses (i), (ii) and
(iii) the Company shall not, and shall not permit any of its Subsidiaries
to, consummate an Asset Disposition unless (A) the Company (or the
Subsidiary, as the case may be) receives consideration at the time of such
Asset Disposition at least equal to the fair market value (as determined by the
Board of Directors of such Person and evidenced by a resolution of the Board of
Directors of such Person set forth in an officer’s certificate delivered to the
Administrative Agent) of the assets and (B) at least 75% of the
consideration therefore received by the Company or such Subsidiary is in the
form of cash; provided that the amount of (x) any liabilities (as shown on
the Company’s or such Subsidiary’s most recent balance sheet), of the Company
or any Subsidiary that are assumed by the transferee of any such assets such
that the Company or such Subsidiary have no further liability and (y) any
securities, notes or other obligations received by the Company or any such
Subsidiary from such transferee that are converted by the Company or such
Subsidiary into cash (to the extent of the cash received), shall be deemed to
be cash for purposes of this provision and the definition of Net Cash Proceeds,
and (C) the Collateral Agent promptly shall obtain a first priority
security interest in any non-cash consideration for any Asset Disposition.

 

11.5        Modification of
Organizational Documents.

 

Not permit the
charter, by-laws or other organizational documents of any Loan Party to be
amended or modified in any way which could reasonably be expected to materially
adversely affect the interests of the Lenders.

 

11.6        Transactions with
Affiliates.

 

Not, and not
permit any other Loan Party to, take any actions, nor enter into any
transactions, of the types described in Sections 11.1, 11.2, 11.3,
11.4, 11.10, 11.14 or 11.15, directly or
indirectly, with, or for the benefit of, the Principals and any other
Affiliates of the 

 

70

 

Company (each of the foregoing, an “Affiliate Transaction”)
except as may otherwise be specifically permitted by those sections, and except
as follows:

 

(a)           transactions
between or among the Company and/or the Guarantors shall be permitted;

 

(b)           any
Subsidiary may merge with or into another Subsidiary or into the Company,
provided that (i) there is no Unmatured Event of Default or Event of
Default either existing before, or which would arise from, such merger, (ii) if
any such merger involves a Guarantor, the Guarantor shall be the surviving
Person, (iii) if any such merger involves the Company, the Company shall
be the surviving Person and (iv) if any such merger involves the Company
or any Guarantor, the net worth of the Company or such Guarantor involved in such
merger immediately after the merger would be equal to or greater than its net
worth immediately preceding such merger;

 

(c)           upon
notice to and consent of the Administrative Agent, any Subsidiary may merge
with or into a newly-created Subsidiary which is incorporated, formed or
otherwise organized pursuant to the laws of the State of Delaware, solely for
the purpose of re-organizing the previously existing Subsidiary under the laws
of the State of Delaware, provided that (i) there is no Unmatured Event of
Default or Event of Default either existing before, or which would arise from,
such merger, (ii) if any such merger involves a Guarantor, the surviving
Subsidiary shall become a Guarantor, and the net worth of such surviving
Subsidiary immediately after the merger shall be equal to or greater than the
Guarantor’s net worth immediately preceding such merger, and (iii) all
other terms and conditions of such merger shall be acceptable to the
Administrative Agent in its reasonable discretion;

 

(d)           transfers
of assets, including without limitation Capital Securities, between Guarantors
or between the Company and Guarantors shall be permitted, provided that the
Collateral Agent maintains its first priority perfected Lien on any and all
collateral security;

 

(e)           Affiliate
Transactions, Facility Management Agreements and Facility Leases entered into
in the ordinary course of business shall be permitted that are on terms that
are no less favorable to the Company or the relevant Subsidiary than those that
would have been obtained in a comparable transaction by the Company or such
Subsidiary with an unrelated Person; and

 

(f)            the
Company or any Guarantor may purchase or otherwise acquire any Capital
Securities of or other ownership interest in, or debt securities of or other
evidences of Debt of, any Subsidiary or Joint Venture that is not a Guarantor;
or make any loan or advance of any of its funds or property or make any other
extension of credit to, or make any other investment or contribution or acquire
any interest whatsoever in, any Subsidiary or Joint Venture that is not a
Guarantor, not exceeding an aggregate amount equal to the book value of 3% of
Total Assets; provided, that any of the foregoing transactions shall reduce,
dollar for dollar, the available Debt permitted by Section 11.1(1).

 

71

 

11.7        Unconditional Purchase
Obligations.

 

Not, and not
permit any other Loan Party to, enter into or be a party to any contract for
the purchase of materials, supplies or other property or services if such
contract requires that payment be made by it regardless of whether delivery is
ever made of such materials, supplies or other property or services.

 

11.8        Inconsistent Agreements.

 

Not, and not
permit any other Loan Party to, enter into any agreement, including without
limitation any amendments to existing agreements, containing any provision
which would (a) be violated or breached by any borrowing by the Company
hereunder or by the performance by any Loan Party of any of its Obligations
hereunder or under any other Loan Document, (b) prohibit any Loan Party
from granting to the Collateral Agent and the Lenders, a Lien on any of its
assets, now or hereafter acquired, or (c) create or permit to exist or
become effective any encumbrance or restriction on the ability of any
Subsidiary to (i) pay dividends or make other distributions to the Company
or any other Subsidiary, or pay any Debt owed to the Company or any other
Subsidiary, (ii) make loans or advances to any Loan Party or (iii) transfer
any of its assets or properties to any Loan Party; other than (A) customary
restrictions and conditions contained in agreements relating to the sale of all
or a substantial part of the assets of any Subsidiary pending such sale, provided
that such restrictions and conditions apply only to the Subsidiary to be sold
and such sale is permitted hereunder (B) restrictions or conditions
imposed by any agreement relating to purchase money Debt, Capital Leases and
other secured Debt permitted by this Agreement if such restrictions or
conditions apply only to the property or assets securing such Debt and (C) customary
provisions in leases, Joint Venture agreements (created in the ordinary course
consistent with past practices) and other contracts restricting the assignment
thereof.  The Company shall use its best
efforts to avoid entering into Joint Venture agreements which would violate the
foregoing terms of this Section 11.8.

 

11.9        Business Activities;
Issuance of Equity.

 

Not, and not
permit any other Loan Party to, engage in any line of business other than the
businesses engaged in on the date hereof and businesses reasonably related
thereto.  Not, and not permit any other
Loan Party to, issue any Capital Securities other than (a) any issuance of
shares of the Company’s Capital Securities (provided any such issued shares
shall not be Disqualified Stock), or (b) any issuance by a Subsidiary to
the Company or another Subsidiary in accordance with Section 11.3.

 

11.10      Investments, Loans and
Advances.

 

Not, and not
permit any other Loan Party to, purchase or otherwise acquire any Capital
Securities of or other ownership interest in, or debt securities of or other
evidences of Debt of, any other Person; nor make any loan or advance of any of
its funds or property or make any other extension of credit to, or make any
other investment or contribution or acquire any interest whatsoever in, any
other Person; nor incur any Contingent Liability except to the extent permitted
under Section 11.1 nor permit any Subsidiary to do any of the
foregoing; other than:

 

72

 

(a)           contributions
by the Company to the capital of any Wholly-Owned Subsidiary, or by any
Subsidiary to the capital of any other domestic Wholly-Owned Subsidiary, so
long as the recipient of any such capital contribution has guaranteed the
Obligations and such guaranty is secured by a pledge of all of its Capital
Securities and substantially all of its real and personal property, in each
case in accordance with Section 10.8;

 

(b)           contributions
to non-Wholly-Owned Subsidiaries and Joint Ventures in the ordinary course of
business consistent with past practices not in excess of $2,000,000 in the
aggregate;

 

(c)           investments
constituting Debt permitted by Section 11.1;

 

(d)           Contingent
Liabilities constituting Debt permitted by Section 11.1 or Liens
permitted by Section 11.2;

 

(e)           investments
in Cash Equivalents;

 

(f)            bank
deposits in the ordinary course of business;

 

(g)           investments
in securities of Account Debtors received pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of such
account debtors;

 

(h)           investments
to consummate Permitted Acquisitions;

 

(i)            those
investments, loans, advances and other transactions described in Schedule
11.10 as of the Closing Date, but no extension or renewal thereof shall be
permitted;

 

(j)            extensions
of trade credit made in the ordinary course of business on customary credit
terms and commissions, relocation, travel and similar advances made to officers
and employees and to consultants for consulting services and reimbursable
expenses, all in the ordinary course of business, provided that advances to
officers, employees and to consultants for purposes other than commission,
relocation and travel shall not exceed $250,000 in aggregate at any time
outstanding;

 

(k)           acquire
and own stock, obligations or securities received in settlement of debts owing
to the Company or its Subsidiaries or as consideration for Asset Dispositions
otherwise permitted under Section 11.4;

 

(l)            advances
made by the Company or its Subsidiaries or Joint Ventures to clients in
connection with Facility Leases and Facility Management Agreements of the
Company in the ordinary course of business consistent with past practices;

 

73

 

(m)          other
loans, advances or investments (except to (i) the Principals, or (ii) other
Affiliates of the Company) in an aggregate amount not to exceed three percent
(3%) of Total Assets; and

 

(n)           as
otherwise permitted pursuant to Sections 11.6.

 

provided that (x) any Investment
which when made complies with the requirements of the definition of the term “Cash
Equivalent Investment” may continue to be held notwithstanding that such
Investment if made thereafter would not comply with such requirements; (y) no
new Investment which would otherwise be permitted by clause (c), (d), or (h) shall
be permitted to be made if, immediately before or after giving effect thereto,
any Event of Default or Unmatured Event of Default exists.

 

11.11      Restriction of Amendments
to Certain Documents.

 

Not amend or
otherwise modify, or waive any rights under, the Subordinated Debt Documents
if, in any case, such amendment, modification or waiver could reasonably be
expected to be material and adverse to the interests of the Lenders.

 

11.12      Fiscal Year.

 

Not change its
Fiscal Year.

 

11.13      Financial Covenants.

 

11.13.1   Fixed
Charge Coverage Ratio.

 

Not
permit the Fixed Charge Coverage Ratio to be less than 2.00 to 1.0 as of the
end of any Fiscal Quarter.

 

11.13.2         Total Debt to EBITDA Ratio.

 

Not
permit the Total Debt to EBITDA Ratio to exceed (i) 4.25 to 1.0 as of the
end of any Fiscal Quarter from the Closing Date through and including September 30,
2009, (ii) 4.0 to 1.0 as of the end of any Fiscal Quarter from October 1,
2009 through and including September 30, 2010 and (iii) 3.75 to 1.0
as of the end of any Fiscal Quarter ending after September 30, 2010.

 

11.14      Repayment or Redemption
of Debt; Cancellation of Debt.

 

Not make, or
permit any Subsidiary to make, any optional payment, defeasance (whether a covenant
defeasance, legal defeasance or other defeasance), prepayment or redemption of
any of its or any of its Subsidiaries’ Debt (except for (x) payments made
in Capital Securities which could not create an Event of Default, (y) except
for Ordinary Course Lease Termination Payments and (z) prepayments or any
redemption of the Company’s or any of its Subsidiaries’ Subordinated Debt); or
amend or modify, or consent or agree to any amendment or modification 

 

74

 

of, any instrument or agreement under which any of its Subordinated
Debt is issued or created or otherwise related thereto; or enter into any
agreement or arrangement providing for any defeasance of any kind of any of its
Subordinated Debt; except as may otherwise be permitted pursuant to Sections
11.3 and 11.6.  Not, and not permit
any other Loan Party to, cancel any claim or debt owing to it, except for
reasonable consideration or in the ordinary course of business.

 

11.15      Affiliate Amounts.

 

Except as set
forth on Schedule 11.15, the Company will not pay, or permit any
Subsidiary to pay, directly or indirectly, any management, consulting,
investment banking, advisory or other fees or payments, fees or payments under
any leases, any expense reimbursement or similar payments, or any other
payments of any kind (including, without limitation, any amounts paid or
payable by the Company or any of its Subsidiaries to the Principals and/or to
any other Affiliates of the Company, in respect of overhead expense allocations
among members of the Affiliate corporate group) to the Principals and/or to any
other Affiliates of the Company, other than the Company or any Guarantor.  The foregoing sentence shall not restrict the
Company from (i) paying salaries, bonuses or other compensation to, or
reimbursing travel or other business expenses of, officers or employees (other
than any such Person who is also a Principal) in the ordinary course of
business, or (ii) reimbursing travel or other business expenses of any
officer or director of the Company who is also a Principal, to the extent such
reimbursements or such expenses are customarily paid or reimbursed for all
officers and/or directors (as applicable) of the Company in the ordinary course
of the Company’s business, consistent with past practices, or (iii) making
Special Payments in compliance with the definition of such term.

 

SECTION 12

 

EFFECTIVENESS;
CONDITIONS OF LENDING, ETC.

 

The obligation of
each Lender to make its Loans and participate in the Existing Letters of
Credit, and of any Issuing Lender to issue Letters of Credit, is subject to the
following conditions precedent:

 

12.1        Initial Credit
Extension.

 

The obligation of
the Lenders to make the initial Loans and to participate in the Existing
Letters of Credit, and the obligation of the applicable Issuing Lender to issue
its initial Letter of Credit (whichever first occurs) is, in addition to the
conditions precedent specified in Section 12.2, subject to the
conditions precedent that the Administrative Agent shall received all of the
following, each duly executed and dated the Closing Date (or such earlier date
as shall be satisfactory to the Administrative Agent), in form and substance
reasonably satisfactory to the Administrative Agent (and the date on which all
such conditions precedent have been satisfied or waived in writing by the
Administrative Agent and the Lenders is called the “Closing Date”):

 

75

 

12.1.1               Notes.

 

A Note for each Lender.

 

12.1.2               Authorization Documents.

 

For
the Company and each Guarantor, such Person’s (a) charter (or similar
formation document), certified by the appropriate governmental authority; (b) good
standing certificates in its state of incorporation (or formation) and in each
other state requested by the Administrative Agent; (c) bylaws (or similar
governing document); (d) resolutions of its board of directors (or similar
governing body) approving and authorizing such Person’s execution, delivery and
performance of the Loan Documents to which it is party and the transactions
contemplated thereby; and (e) signature and incumbency certificates of its
officers executing any of the Loan Documents (it being understood that the
Administrative Agent and each Lender may conclusively rely on each such
certificate until formally advised by a like certificate of any changes
therein), all certified by its secretary or an assistant secretary (or similar
officer) as being in full force and effect without modification.

 

12.1.3               Consents, etc.

 

Certified
copies of all documents evidencing any necessary corporate or partnership
action, consents and governmental approvals (if any) required for the
execution, delivery and performance by the Company and each Guarantor of the
documents referred to in this Section 12.

 

12.1.4               Guaranty and Collateral Agreement.

 

A
counterpart of the Guaranty and Collateral Agreement executed by the Company
and each Guarantor, together with all instruments, transfer powers and other
items required to be delivered in connection therewith.

 

12.1.5               Perfection Certificate.

 

A
Perfection Certificate completed and executed by the Company and each
Guarantor.

 

12.1.6               Opinions of Counsel.

 

Opinions
of counsel for the Company and each Guarantor, including local counsel
reasonably requested by the Administrative Agent.

 

76

 

12.1.7               Insurance.

 

Evidence
of the existence of insurance required to be maintained pursuant to Section 10.3(b),
together with evidence that the Collateral Agent has been named as a lender’s
loss payee and an additional insured on all related insurance policies.

 

12.1.8               Copies of Documents.

 

Copies
of the documentation governing any Subordinated Debt certified by the secretary
or assistant secretary (or similar officer) of the Company as being true,
accurate and complete.

 

12.1.9               Payment of Fees.

 

Evidence
of payment by the Company of all accrued and unpaid fees, costs and expenses to
the extent then due and payable on the Closing Date, together with all Attorney
Costs of the Administrative Agent and the Joint Lead Arrangers to the extent
invoiced prior to the Closing Date, plus such additional amounts of
Attorney Costs as shall constitute the Administrative Agent’s reasonable
estimate of Attorney Costs incurred or to be incurred by the Administrative
Agent through the closing proceedings (provided that such estimate shall
not thereafter preclude final settling of accounts between the Company and the
Administrative Agent).

 

12.1.10         Solvency Certificate.

 

A
Solvency Certificate executed by a Senior Officer of the Company.

 

12.1.11         Pro Forma.

 

A
consolidated pro  forma balance sheet of the Company as at March 31,
2008, adjusted to give effect to the consummation of the financings
contemplated hereby as if such financing had occurred on such date, consistent
in all material respects with the sources and uses of cash as previously
described to the Lenders and the forecasts previously provided to the Lenders.

 

12.1.12         Search Results; Lien Terminations.

 

Copies
of Uniform Commercial Code search reports dated a date reasonably near to the
Closing Date, listing all effective financing statements which name the Company
and each Guarantor (under their present names and any previous names) as
debtors, together with copies of such financing statements and, where feasible
prior to the Closing Date, together with Uniform Commercial Code or other
appropriate termination statements and documents effective to evidence the
foregoing (other than Liens permitted by Section 11.2) and such 

 

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other Uniform Commercial Code termination statements
as the Administrative Agent may reasonably request.

 

12.1.13         Filings, Registrations and Recordings.

 

The
Collateral Agent shall have received each document (including Uniform
Commercial Code financing statements) required by the Collateral Documents or
under law or reasonably requested by the Collateral Agent to be filed,
registered or recorded in order to create in favor of the Collateral Agent, for
the benefit of the Lenders, a perfected Lien on the collateral described
therein, prior to any other Liens (subject only to Liens permitted pursuant to Section 11.2),
in proper form for filing, registration or recording.

 

12.1.14         Closing Certificate, Consents and Permits.

 

A
certificate executed by an officer of the Company on behalf of the Company in
such capacity but not individually certifying the matters set forth in Section 12.2.1
as of the Closing Date.

 

12.1.15         Other.

 

Such other documents as the Administrative Agent or
any Lender may reasonably request.

 

12.2        Conditions.

 

The obligation (a) of
each Lender to make each Loan and participate in each Existing Letter of
Credit, and (b) of any Issuing Lender to issue each Letter of Credit is
subject to the following further conditions precedent that:

 

12.2.1               Compliance with Warranties, No
Default, etc.

 

Both
before and after giving effect to any borrowing and the issuance of any Letter
of Credit, the following statements shall be true and correct:

 

(a)           the
representations and warranties of each Loan Party and each Guarantor set forth
in this Agreement and the other Loan Documents shall be true and correct in all
material respects with the same effect as if then made (except to the extent
stated to relate to a specific earlier date, in which case such representations
and warranties shall be true and correct as of such earlier date); and

 

(b)           no
Event of Default or Unmatured Event of Default shall have then occurred and be
continuing.

 

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12.2.2               Confirmatory
Certificate.

 

If
requested by the Administrative Agent or any Lender, the Administrative Agent
shall have received (in sufficient counterparts to provide one to each Lender)
a certificate dated the date of such requested Loan or Letter of Credit and
signed by a duly authorized representative of the Company in such capacity but
not individually as to the matters set out in Section 12.2.1 (it
being understood that each request by the Company for the making of a Loan or
the issuance of a Letter of Credit shall be deemed to constitute a
representation and warranty by the Company that the conditions precedent set
forth in Section 12.2.1 will be satisfied at the time of the making
of such Loan or the issuance of such Letter of Credit), together with such
other documents as the Administrative Agent or any Lender may reasonably
request in support thereof.

 

12.2.3               Real Estate Documents.

 

If
requested by the Collateral Agent or any Lender, with respect to each parcel of
real property, at any time owned by the Company or any Guarantor, a duly
executed Mortgage providing for a fully perfected Lien, in favor of the
Collateral Agent, in all right, title and interest of the Company or such
Guarantor in such real property, together with:

 

(a)           an
ALTA Loan Title Insurance Policy, issued by an insurer acceptable to the
Collateral Agent, insuring the Collateral Agent’s Lien on such real property
and containing such endorsements as the Collateral Agent may reasonably require
(it being understood that the amount of coverage, exceptions to coverage and
status of title set forth in such policy shall be acceptable to the Collateral
Agent);

 

(b)           copies
of all documents of record concerning such real property as shown on the
commitment for the ALTA Loan Title Insurance Policy referred to above;

 

(c)           original
or certified copies of all insurance policies required to be maintained with
respect to such real property by this Agreement, the applicable Mortgage or any
other Loan Document;

 

(d)           a
survey certified to the Collateral Agent meeting such standards as the
Collateral Agent may reasonably establish and otherwise reasonably satisfactory
to the Collateral Agent;

 

(e)           a
flood insurance policy concerning such real property, if required by the Flood
Disaster Protection Act of 1973; and

 

(f)            an
appraisal, prepared by an independent appraiser engaged directly by the
Collateral Agent, of such parcel of real property or interest in real 

 

79

 

property, which appraisal shall satisfy the
requirements of the Financial Institutions Reform, Recovery and Enforcement
Act, if applicable, and shall evidence compliance with the supervisory
loan-to-value limits set forth in the Federal Deposit Insurance Corporation
Improvement Act of 1991, if applicable.

 

Additionally,
(i) in the case of any leased real property (other than the Company’s
office located at 900 North Michigan Avenue, Suite 1600, Chicago,
Illinois) on which are located any assets or improvements (having a value of
$1,000,000 or more with respect to each real property address) owned by the
Company and/or any of its Subsidiaries and/or Joint Ventures, at any time upon
the request of the Collateral Agent or the Required Lenders, the Company and/or
its Subsidiary and/or Joint Venture, as applicable, shall use their best
efforts to provide a Collateral Access Agreement from the landlord of such
property waiving any landlord’s Lien in respect of personal property kept at
the premises subject to such lease, and (ii) in the case of any mortgaged
real property, a waiver from the mortgagee thereof waiving any Lien in respect
of personal property kept at the premises subject to such Mortgage.

 

SECTION 13

 

EVENTS OF DEFAULT
AND THEIR EFFECT

 

13.1        Events of Default.

 

Each
of the following shall constitute an Event of Default under this Agreement:

 

13.1.1               Non-Payment of the Loans, etc.

 

Default
in the payment when due of the principal of any Loan; or default, and
continuance thereof for five days, in the payment when due of any interest,
fee, reimbursement obligation with respect to any Letter of Credit or Existing
Letter of Credit or other amount payable by the Company or any Guarantor
hereunder or under any other Loan Document.

 

13.1.2               Non-Payment of Other Debt.

 

Any
default shall occur under the terms applicable to any Debt of any Loan Party or
Guarantor (other than non-recourse Debt of the Company or any of its
Subsidiaries or any Guarantor as the Administrative Agent shall consent, such
consent not to be unreasonably withheld) in an aggregate amount (for all such
Debt so affected and including undrawn committed or available amounts and
amounts owing to all creditors under any combined or syndicated credit
arrangement) exceeding $2,000,000 and such default shall (a) consist of
the failure to pay such Debt when due, whether by acceleration or otherwise, or
(b) accelerate the maturity of such Debt or permit the holder or holders
thereof, or 

 

80

 

any trustee or agent for such holder or holders, to
cause such Debt to become due and payable (or require any Loan Party or
Guarantor to purchase or redeem such Debt or post cash collateral in respect
thereof) prior to its expressed maturity.

 

13.1.3               Other Material Obligations.

 

Default
in the payment when due, or in the performance or observance of, any material
obligation of, or condition agreed to by, any Loan Party or Guarantor with
respect to any material purchase or lease of goods or services where such
default, singly or in the aggregate with all other such defaults, could
reasonably be expected to have a Material Adverse Effect.

 

13.1.4               Bankruptcy, Insolvency, etc.

 

Any
Loan Party or Guarantor becomes insolvent or generally fails to pay, or admits
in writing its inability or refusal to pay, debts as they become due; or any
Loan Party or Guarantor applies for, consents to, or acquiesces in the
appointment of a trustee, receiver or other custodian for such Loan Party or
Guarantor or any property thereof, or makes a general assignment for the benefit
of creditors; or, in the absence of such application, consent or acquiescence,
a trustee, receiver or other custodian is appointed for any Loan Party or
Guarantor or for a substantial part of the property of any thereof and is not
discharged within 60 days; or any bankruptcy, reorganization, debt arrangement,
or other case or proceeding under any bankruptcy or insolvency law, or any
dissolution or liquidation proceeding, is commenced in respect of any Loan
Party or Guarantor, and if such case or proceeding is not commenced by such
Loan Party or Guarantor, it is consented to or acquiesced in by such Loan Party
or Guarantor, or remains for 60 days undismissed; or any Loan Party or
Guarantor takes any action to authorize, or in furtherance of, any of the foregoing.

 

13.1.5               Non-Compliance with Loan Documents.

 

(a) Failure
by any Loan Party or Guarantor to comply with or to perform any covenant set
forth in Section 10.1.5, 10.3(b) or 10.5 or Section 11
or (b) failure by any Loan Party or Guarantor to comply with or to perform
any other provision of this Agreement or any other Loan Document (and not
constituting an Event of Default under any other provision of this Section 13)
and continuance of such failure described in this clause (b) for 30
days.

 

13.1.6               Representations; Warranties.

 

Any
representation or warranty made by any Loan Party or Guarantor herein or any
other Loan Document is breached or is false or misleading in any material
respect, or any schedule, certificate, financial statement, report, notice or
other writing furnished by any Loan Party or Guarantor to the Administrative 

 

81

 

Agent or any Lender in connection herewith is false or
misleading in any material respect on the date as of which the facts therein
set forth are stated or certified.

 

13.1.7               Pension Plans.

 

(a) Any
Person institutes steps to terminate a Pension Plan if as a result of such
termination the Company or any member of the Controlled Group could be required
to make a contribution to such Pension Plan, or could incur a liability or
obligation to such Pension Plan, which contribution or liability could
reasonably be expected to have a Material Adverse Effect; (b) a
contribution failure occurs with respect to any Pension Plan sufficient to give
rise to a Lien under Section 302(f) of ERISA; (c) the Unfunded
Liability exceeds $1,000,000; or (d) there shall occur any withdrawal or
partial withdrawal from a Multiemployer Pension Plan and the withdrawal
liability (without unaccrued interest) to Multiemployer Pension Plans as a
result of such withdrawal (including any outstanding withdrawal liability that
the Company or any member of the Controlled Group have incurred on the date of
such withdrawal) could reasonably be expected to have a Material Adverse
Effect.

 

13.1.8               Judgments.

 

Final
judgments which exceed an aggregate of $2,000,000 shall be rendered against any
Loan Party or Guarantor and shall not have been paid, discharged or vacated or
had execution thereof stayed pending appeal within 30 days after entry or
filing of such judgments.

 

13.1.9               Invalidity of Collateral Documents,
etc.

 

Any
Collateral Document shall cease to be in full force and effect other than
pursuant to the terms thereof, or any of the Company or the Guarantors (or any Person
by, through or on behalf of any of the Company or the Guarantors) shall contest
in any manner the validity, binding nature or enforceability of any Collateral
Document.

 

13.1.10         Invalidity of Subordination Provisions, etc.

 

Any
subordination provision in any document or instrument governing Subordinated
Debt, or any subordination provision in any guaranty by any Subsidiary of any
Subordinated Debt, shall cease to be in full force and effect other than
pursuant to the terms thereof, or any Loan Party or Guarantor or any other
Person (including the holder of any applicable Subordinated Debt) shall contest
in any manner the validity, binding nature or enforceability of any such
provision.

 

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13.1.11         Change of Control.

 

A
Change of Control shall occur.

 

13.1.12         Material Adverse Effect.

 

The occurrence of any event having a Material Adverse
Effect.

 

13.2        Effect of Event of
Default.

 

If any Event of
Default described in Section 13.1.4 shall occur in respect of the
Company, the Commitments shall immediately terminate and the Loans and all
other Obligations hereunder shall become immediately due and payable and the
Company shall become immediately obligated to Cash Collateralize all Letters of
Credit and Existing Letters of Credit, all without presentment, demand, protest
or notice of any kind; and, if any other Event of Default shall occur and be
continuing, the Administrative Agent may (and, upon the written request of the
Required Lenders shall) declare the Commitments to be terminated in whole or in
part and/or declare all or any part of the Loans and all other Obligations
hereunder to be due and payable and/or demand that the Company immediately Cash
Collateralize all or any Letters of Credit and Existing Letters of Credit,
whereupon the Commitments shall immediately terminate (or be reduced, as
applicable) and/or the Loans and other Obligations hereunder shall become
immediately due and payable (in whole or in part, as applicable) and/or the Company
shall immediately become obligated to Cash Collateralize the Letters of Credit
and Existing Letters of Credit (all or any, as applicable), all without
presentment, demand, protest or notice of any kind.  The Administrative Agent shall promptly
advise the Company of any such declaration, but failure to do so shall not
impair the effect of such declaration. 
Any cash collateral delivered hereunder shall be held by the Collateral
Agent (without liability for interest thereon) and applied to the Obligations
arising in connection with any drawing under a Letter of Credit or Existing
Letter of Credit.  After the expiration
or termination of all Letters of Credit and Existing Letters of Credit, such
cash collateral shall be applied by the Administrative Agent to any remaining
Obligations hereunder and any excess shall be delivered to the Company or as a
court of competent jurisdiction may elect.

 

SECTION 14

 

THE AGENT

 

14.1        Appointment and
Authorization.

 

Each Lender hereby irrevocably (subject to Section 14.10)
appoints, designates and authorizes the Administrative Agent and the Collateral
Agent to take such action on its behalf under the provisions of this Agreement
and each other Loan Document and to exercise such powers and perform such
duties as are expressly delegated to each of them by the terms of this
Agreement or any other Loan Document, together with such powers as are
reasonably incidental thereto. 
Notwithstanding any provision to the contrary contained elsewhere in
this Agreement or 

 

83

 

in any other Loan Document, the Administrative Agent
and the Collateral Agent shall not have any duty or responsibility except those
expressly set forth herein, nor shall the Administrative Agent or the
Collateral Agent have or be deemed to have any fiduciary relationship with any
Lender or participant, and no implied covenants, functions, responsibilities,
duties, obligations or liabilities shall be read into this Agreement or any
other Loan Document or otherwise exist against the Administrative Agent or the
Collateral Agent.  Without limiting the
generality of the foregoing sentence, the use of the term “agent” herein and in
other Loan Documents with reference to the Administrative Agent or the
Collateral Agent is not intended to connote any fiduciary or other implied (or
express) obligations arising under agency doctrine of any applicable law.  Instead, such term is used merely as a matter
of market custom, and is intended to create or reflect only an administrative
relationship between independent contracting parties.

 

14.2        Issuing Lender, Bank of
America and Wells.

 

(a)           Any
Issuing Lenders shall act on behalf of the Lenders (according to their Pro Rata
Shares) with respect to any Letters of Credit issued by it and the documents
associated therewith.  The Issuing
Lenders shall have all of the benefits and immunities (i) provided to the
Administrative Agent in this Section 14 with respect to any acts
taken or omissions suffered by any such Issuing Lender in connection with
Letters of Credit issued by it or proposed to be issued by it and the
applications and agreements for letters of credit pertaining to such Letters of
Credit as fully as if the term “Administrative Agent”, as used in this Section 14,
included such Issuing Lender with respect to such acts or omissions, and (ii) as
additionally provided in this Agreement with respect to such Issuing Lender.

 

(b)           Bank
of America and Wells, each in its capacity as the issuer of the Existing
Letters of Credit, shall act on behalf of the Lenders (according to their Pro
Rata Shares) with respect to any Existing Letters of Credit issued by it and
the documents associated therewith. Bank of America and Wells, each in such
capacity, shall have all of the benefits and immunities (i) provided to
the Administrative Agent in this Section 14 with respect to any
acts taken or omissions suffered by any of Bank of America or Wells in
connection with Existing Letters of Credit issued by it and the agreements for
letters of credit pertaining to such Existing Letters of Credit as fully as if
the term “Administrative Agent”, as used in this Section 14,
included Bank of America and Wells, each in such capacity with respect to such
acts or omissions, and (ii) as additionally provided in this Agreement
with respect to Bank of America and Wells, each in such capacity.

 

14.3        Delegation of Duties.

 

The Administrative
Agent and the Collateral Agent may execute any of their respective duties under
this Agreement or any other Loan Document by or through agents, employees or
attorneys-in-fact and shall be entitled to advice of counsel and other
consultants or experts concerning all matters pertaining to such duties.  The Administrative Agent and the Collateral
Agent shall not be responsible for the negligence or misconduct of any agent or
attorney-in-fact that either one selects in the absence of gross negligence or
willful misconduct.

 

84

 

14.4        Exculpation of Agents.

 

None of the
Administrative Agent, the Collateral Agent, nor any of their respective
directors, officers, employees or agents shall (a) be liable for any
action taken or omitted to be taken by any of them under or in connection with
this Agreement or any other Loan Document or the transactions contemplated
hereby (except to the extent resulting from its own gross negligence or willful
misconduct in connection with its duties expressly set forth herein as
determined by a final, nonappealable judgment by a court of competent
jurisdiction), or (b) be responsible in any manner to any Lender or
participant for any recital, statement, representation or warranty made by any
Loan Party, any Guarantor or Affiliate of the Company, or any officer thereof,
contained in this Agreement or in any other Loan Document, or in any
certificate, report, statement or other document referred to or provided for
in, or received by the Administrative Agent or the Collateral Agent under or in
connection with, this Agreement or any other Loan Document, or the validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement or
any other Loan Document (or the creation, perfection or priority of any Lien or
security interest therein), or for any failure of the Company or any other
party to any Loan Document to perform its Obligations hereunder or
thereunder.  Neither the Administrative
Agent nor the Collateral Agent shall be under any obligation to any Lender to
ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the properties, books or records of the Company or any
of the Company’s Subsidiaries or Affiliates or the Guarantors.

 

14.5        Reliance by Agents.

 

The Administrative
Agent and the Collateral Agent shall be entitled to rely, and shall be fully
protected in relying, upon any writing, communication, signature, resolution,
representation, notice, consent, certificate, electronic mail message,
affidavit, letter, telegram, facsimile, telex or telephone message, statement
or other document or conversation believed by it to be genuine and correct and
to have been signed, sent or made by the proper Person or Persons, and upon
advice and statements of legal counsel (including counsel to the Company),
independent accountants and other experts selected by the Administrative Agent
or the Collateral Agent, as applicable. 
The Administrative Agent and the Collateral Agent shall be fully
justified in failing or refusing to take any action under this Agreement or any
other Loan Document unless it shall first receive such advice or concurrence of
the Required Lenders as it deems appropriate and, if it so requests,
confirmation from the Lenders of their obligation to indemnify the
Administrative Agent or the Collateral Agent, as applicable, against any and
all liability and expense which may be incurred by it by reason of taking or
continuing to take any such action.  The
Administrative Agent and the Collateral Agent shall in all cases be fully
protected in acting, or in refraining from acting, under this Agreement or any
other Loan Document in accordance with a request or consent of the Required
Lenders and such request and any action taken or failure to act pursuant
thereto shall be binding upon each Lender. 
For purposes of determining compliance with the conditions specified in Section 12,
each Lender that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Administrative Agent shall have received 

 

85

 

written notice from such Lender prior to the proposed Closing Date
specifying its objection thereto.

 

14.6        Notice of Default.

 

The Administrative
Agent and the Collateral Agent shall not be deemed to have knowledge or notice
of the occurrence of any Event of Default or Unmatured Event of Default except
with respect to defaults in the payment of principal, interest and fees
required to be paid to the Administrative Agent for the account of the Lenders,
unless the Administrative Agent or the Collateral Agent, as applicable, shall
have received written notice from a Lender or the Company referring to this
Agreement, describing such Event of Default or Unmatured Event of Default and
stating that such notice is a “notice of default”.  The Administrative Agent will notify the
Lenders of its receipt of any such notice. 
The Administrative Agent and the Collateral Agent shall take such action
with respect to such Event of Default or Unmatured Event of Default as may be
requested by the Required Lenders in accordance with Section 13; provided
that unless and until the Administrative Agent or the Collateral Agent, as
applicable, has received any such request, the Administrative Agent and the
Collateral Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Event of Default or
Unmatured Event of Default as it shall deem advisable or in the best interest
of the Lenders.

 

14.7        Credit Decision.

 

Each Lender
acknowledges that the Administrative Agent and the Collateral Agent have not
made any representation or warranty to it, and that no act by the
Administrative Agent or the Collateral Agent hereafter taken, including any
consent and acceptance of any assignment or review of the affairs of the Loan
Parties, shall be deemed to constitute any representation or warranty by the
Administrative Agent or the Collateral Agent to any Lender as to any matter,
including whether the Administrative Agent or the Collateral Agent has
disclosed material information in its possession.  Each Lender represents to the Administrative
Agent and the Collateral Agent that it has, independently and without reliance
upon the Administrative Agent or the Collateral Agent and based on such
documents and information as it has deemed appropriate, made its own appraisal
of and investigation into the business, prospects, operations, property,
financial and other condition and creditworthiness of the Loan Parties or the
Guarantors, and made its own decision to enter into this Agreement and to
extend credit to the Company hereunder. 
Each Lender also represents that it will, independently and without
reliance upon the Administrative Agent or the Collateral Agent and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or
not taking action under this Agreement and the other Loan Documents, and to
make such investigations as it deems necessary to inform itself as to the
business, prospects, operations, property, financial and other condition and
creditworthiness of the Company.  Except
for notices, reports and other documents expressly herein required to be
furnished to the Lenders by the Administrative Agent or the Collateral Agent,
as applicable, the Administrative Agent and the Collateral Agent shall not have
any duty or responsibility to provide any Lender with any credit or other
information concerning the business, prospects, 

 

86

 

operations, property, financial or other condition or creditworthiness
of the Company which may come into the possession of the Administrative Agent
or the Collateral Agent, as applicable.

 

14.8        Indemnification.

 

Whether or not the
transactions contemplated hereby are consummated, each Lender shall indemnify
upon demand the Administrative Agent and the Collateral Agent and their
respective directors, officers, employees and agents (to the extent not
reimbursed by or on behalf of the Company and without limiting the obligation
of the Company to do so), according to its applicable Pro Rata Share, from and
against any and all Indemnified Liabilities (as hereinafter defined); provided
that no Lender shall be liable for any payment to any such Person of any
portion of the Indemnified Liabilities to the extent determined by a final,
nonappealable judgment by a court of competent jurisdiction to have resulted
from the applicable Person’s own gross negligence or willful misconduct.  No action taken in accordance with the
directions of the Required Lenders shall be deemed to constitute gross
negligence or willful misconduct for purposes of this Section.  Without limitation of the foregoing, each
Lender shall reimburse the Administrative Agent and the Collateral Agent upon
demand for its ratable share of any costs or out-of-pocket expenses (including
Attorney Costs and Taxes) incurred by the Administrative Agent or the
Collateral Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement, any other Loan Document, or
any document contemplated by or referred to herein, to the extent that the
Administrative Agent or the Collateral Agent is not reimbursed for such
expenses by or on behalf of the Company. 
The undertaking in this Section shall survive repayment of the
Loans, cancellation of the Notes, expiration or termination of the Letters of
Credit and/or the Existing Letters of Credit, any foreclosure under, or
modification, release or discharge of, any or all of the Collateral Documents,
termination of this Agreement and the resignation or replacement of the
Administrative Agent and/or the Collateral Agent.

 

14.9        Agent in Individual
Capacity.

 

Bank of America
and its Affiliates may make loans to, issue letters of credit for the account
of, accept deposits from, acquire equity interests in and generally engage in
any kind of banking, trust, financial advisory, underwriting or other business
with the Loan Parties or the Guarantors and their respective Affiliates as
though Bank of America were not the Administrative Agent or the Collateral
Agent hereunder and without notice to or consent of any Lender.  Each Lender acknowledges that, pursuant to
such activities, Bank of America or its Affiliates may receive information
regarding the Company or its Affiliates (including information that may be
subject to confidentiality obligations in favor of the Company or such
Affiliate) and acknowledge that neither the Administrative Agent nor the
Collateral Agent shall be under any obligation to provide such information to
them.  With respect to their Loans (if
any), Bank of America and its Affiliates shall have the same rights and powers
under this Agreement as any other Lender and may exercise the same as though
Bank of America were not the Administrative Agent or the Collateral Agent, and
the terms “Lender” and “Lenders” include Bank of America and its Affiliates, to
the extent applicable, in their individual capacities.

 

87

 

14.10      Successor Agent.

 

(a)           The
Administrative Agent may resign as Administrative Agent upon 30 days’ notice to
the Lenders.  If the Administrative Agent
resigns under this Agreement, the Required Lenders shall, with (so long as no
Event of Default exists) the consent of the Company (which shall not be
unreasonably withheld or delayed), appoint from among the Lenders a successor
agent for the Lenders.  If no successor
agent is appointed prior to the effective date of the resignation of the
Administrative Agent, the Administrative Agent may appoint, after consulting
with the Lenders and the Company, a successor agent from among the
Lenders.  Upon the acceptance of its appointment
as successor agent hereunder, such successor agent shall succeed to all the
rights, powers and duties of the retiring Administrative Agent and the term “Administrative
Agent” shall mean such successor agent, and the retiring Administrative Agent’s
appointment, powers and duties as Administrative Agent shall be
terminated.  After any retiring
Administrative Agent’s resignation hereunder as Administrative Agent, the
provisions of this Section 14 and Sections 15.5 and 15.16
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent under this Agreement.  If no successor agent has accepted
appointment as Administrative Agent by the date which is 30 days following a
retiring Administrative Agent’s notice of resignation, the retiring Administrative
Agent’s resignation shall nevertheless thereupon become effective and the
Lenders shall perform all of the duties of the Administrative Agent hereunder
until such time, if any, as the Required Lenders appoint a successor agent as
provided for above.

 

(b)           The
Collateral Agent may resign as Collateral Agent upon 30 days’ notice to the
Lenders.  If the Collateral Agent resigns
under the Loan Documents, the Required Lenders shall, with (so long as no Event
of Default exists) the consent of the Company (which shall not be unreasonably
withheld or delayed), appoint from among the Lenders a successor agent for the
Lenders.  If no successor agent is
appointed prior to the effective date of the resignation of the Collateral
Agent, the Collateral Agent may appoint, after consulting with the Lenders and
the Company, a successor agent from among the Lenders.  Upon the acceptance of its appointment as
successor agent hereunder, such successor agent shall succeed to all the
rights, powers and duties of the retiring Collateral Agent and the term “Collateral
Agent” shall mean such successor agent, and the retiring Collateral Agent’s
appointment, powers and duties as Collateral Agent shall be terminated.  After any retiring Collateral Agent’s
resignation under the Loan Documents as Collateral Agent, the provisions of
this Section 14 and Sections 15.5 and 15.16 shall
inure to its benefit as to any actions taken or omitted to be taken by it while
it was Collateral Agent under this Agreement. 
If no successor agent has accepted appointment as Collateral Agent by
the date which is 30 days following a retiring Collateral Agent’s notice of
resignation, the retiring Collateral Agent’s resignation shall nevertheless
thereupon become effective and the Lenders shall perform all of the duties of
the Collateral Agent hereunder until such time, if any, as the Required Lenders
appoint a successor agent as provided for above

 

14.11      Collateral Matters.

 

The Lenders
irrevocably authorize the Collateral Agent, at its option and in its discretion,
(a) to release any Lien granted to or held by the Collateral Agent under
any Collateral Document (i) upon termination of the Commitments and
payment in full of all Loans and all other 

 

88

 

obligations of the Company hereunder and the expiration or termination
of all Letters of Credit and Existing Letters of Credit; (ii) constituting
property sold or to be sold or disposed of as part of or in connection with any
disposition permitted hereunder; or (iii) subject to Section 15.1,
if approved, authorized or ratified in writing by the Required Lenders; or (b) to
subordinate its interest in any collateral to any holder of a Lien on such
collateral which is permitted by Section 11.2(i) (it  being understood that the Collateral Agent
may conclusively rely on a certificate from the Company in determining whether
the Debt secured by any such Lien is permitted by Section 11.1(b) or
(m)).  Upon request by the Collateral
Agent at any time, the Lenders will confirm in writing the Collateral Agent’s
authority to release, or subordinate its interest in, particular types or items
of collateral pursuant to this Section 14.11.  Each Lender hereby authorizes the
Administrative Agent to give blockage notices in connection with any
Subordinated Debt at the direction of Required Lenders and agrees that it will
not act unilaterally to deliver such notices.

 

14.12      Administrative Agent May File
Proofs of Claim.

 

In case of the
pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to any Loan Party or Guarantor, the Administrative Agent
(irrespective of whether the principal of any Loan shall then be due and
payable as herein expressed or by declaration or otherwise and irrespective of
whether the Administrative Agent shall have made any demand on the Company)
shall be entitled and empowered, by intervention in such proceeding or
otherwise:

 

(a)           to
file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Loans, and all other Obligations that are owing
and unpaid and to file such other documents as may be necessary or advisable in
order to have the claims of the Lenders and the Administrative Agent (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Lenders and the Administrative Agent and their respective agents and
counsel and all other amounts due the Lenders and the Administrative Agent
under Sections 5, 15.5 and 15.16) allowed in such judicial
proceedings; and

 

(b)           to
collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same;

 

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Lender to make such payments to the
Administrative Agent and, in the event that the Administrative Agent shall
consent to the making of such payments directly to the Lenders, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Administrative Agent and its agents and
counsel, and any other amounts due the Administrative Agent under Sections 5,
15.5 and 15.16.

 

Nothing contained
herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender any plan of
reorganization, arrangement, adjustment or composition affecting the
Obligations or the rights of any Lender or to authorize the Administrative
Agent to vote in respect of the claim of any Lender in any such proceeding.

 

89

 

14.13      Other Agents; Arrangers
and Managers.

 

None of the
Lenders or other Persons identified on the facing page or signature pages of
this Agreement as a “syndication agent,” “documentation agent,” “co-agent,” “book
manager,” “lead manager,” “arranger,” “lead arranger” or “co-arranger”, if any,
shall have any right, power, obligation, liability, responsibility or duty
under this Agreement other than, in the case of such Lenders, those applicable
to all Lenders as such.  Without limiting
the foregoing, none of the Lenders or other Persons so identified shall have or
be deemed to have any fiduciary relationship with any Lender.  Each Lender acknowledges that it has not
relied, and will not rely, on any of the Lenders or other Persons so identified
in deciding to enter into this Agreement or in taking or not taking action
hereunder.

 

SECTION 15

 

GENERAL

 

15.1        Waiver; Amendments.

 

No delay on the
part of the Administrative Agent, the Collateral Agent or any Lender in the
exercise of any right, power or remedy shall operate as a waiver thereof, nor
shall any single or partial exercise by any of them of any right, power or
remedy preclude other or further exercise thereof, or the exercise of any other
right, power or remedy.  No amendment,
modification or waiver of, or consent with respect to, any provision of this
Agreement or the other Loan Documents shall in any event be effective unless
the same shall be in writing and acknowledged by the Company and the Lenders
having aggregate Pro Rata Shares of not less than the aggregate Pro Rata Shares
expressly designated herein with respect to such amendment, modification,
waiver or consent or, in the absence of such designation as to any provision of
this Agreement, by the Required Lenders, and then any such amendment,
modification, waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.  No amendment, modification, waiver or consent
shall (a) extend or increase the Commitment of any Lender without the
written consent of such Lender, (b) extend the date scheduled for payment
of any principal (excluding mandatory prepayments) of or interest on the Loans
or any fees payable hereunder without the written consent of each Lender
directly affected thereby, (c) reduce the principal amount of any Loan,
the rate of interest thereon (excluding waivers of any increases due to
existence of an Event of Default) or any fees payable hereunder, without the
consent of each Lender directly affected thereby; or (d) release all or
substantially all of the Guarantors or all or substantially of the collateral
granted under the Collateral Documents, change the definition of Required
Lenders, any provision of this Section 15.1or reduce the aggregate
Pro Rata Share required to effect an amendment, modification, waiver or
consent, without, in each case, the written consent of all Lenders.  No provision of Sections 6.2.2 or 6.3
with respect to the timing or application of mandatory prepayments of the Loans
shall be amended, modified or waived without the consent of Lenders having a
majority of the aggregate Pro Rata Shares of the Loans affected thereby.  No provision of Section 14 or
other provision of this Agreement affecting the Administrative Agent or the
Collateral in their respective capacities 

 

90

 

as such shall be amended, modified or waived without the consent of the
Administrative Agent or the Collateral Agent, as applicable.  No provision of this Agreement relating to
the rights or duties of any Issuing Lender in its capacity as such shall be
amended, modified or waived without the consent of such Issuing Lender.  No provision of this Agreement relating to
the rights or duties of the Swing Line Lender in its capacity as such shall be
amended, modified or waived without the consent of the Swing Line Lender.

 

15.2        Confirmations.

 

The Company and
each holder of a Note agree from time to time, upon written request received by
it from the other, to confirm to the other in writing (with a copy of each such
confirmation to the Administrative Agent) the aggregate unpaid principal amount
of the Loans then outstanding under such Note.

 

15.3        Notices.

 

Except as
otherwise provided in Sections 2.2.2 and 2.2.3, all notices
hereunder shall be in writing (including facsimile transmission) and shall be
sent to the applicable party at its address shown on Annex B or at such
other address as such party may, by written notice received by the other
parties, have designated as its address for such purpose.  Notices sent by facsimile transmission shall
be deemed to have been given when sent; notices sent by mail shall be deemed to
have been given three Business Days after the date when sent by registered or
certified mail, postage prepaid; and notices sent by hand delivery or overnight
courier service shall be deemed to have been given when received.  For purposes of Sections 2.2.2 and 2.2.3,
the Administrative Agent shall be entitled to rely on telephonic instructions
from any person that the Administrative Agent in good faith believes is an
authorized officer or employee of the Company, and the Company shall hold the
Administrative Agent and each other Lender harmless from any loss, cost or
expense resulting from any such reliance.

 

15.4        Computations.

 

Where the
character or amount of any asset or liability or item of income or expense is
required to be determined, or any consolidation or other accounting computation
is required to be made, for the purpose of this Agreement, such determination
or calculation shall, to the extent applicable and except as otherwise
specified in this Agreement, be made in accordance with GAAP, consistently
applied; provided that if the Company notifies the Administrative Agent
that the Company wishes to amend any covenant in Section 11.3 (or
any related definition) to eliminate or to take into account the effect of any
change in GAAP on the operation of such covenant (or if the Administrative
Agent notifies the Company that the Required Lenders wish to amend Section 11.3
(or any related definition) for such purpose), then the Company’s compliance
with such covenant shall be determined on the basis of GAAP in effect
immediately before the relevant change in GAAP became effective, until either
such notice is withdrawn or such covenant (or related definition) is amended in
a manner satisfactory to the Company and the Required Lenders.

 

91

 

15.5        Costs, Expenses and
Taxes.

 

The Company agrees
to pay on demand all reasonable out-of-pocket costs and expenses of the
Administrative Agent, the Collateral Agent and the Issuing Lenders (including
Attorney Costs and any Taxes) in connection with the preparation, execution,
syndication, delivery and administration (including perfection and protection
of any collateral and the costs of Intralinks (or other similar service), if
applicable) of this Agreement, the other Loan Documents and all other documents
provided for herein or delivered or to be delivered hereunder or in connection
herewith (including any amendment, supplement or waiver to any Loan Document),
whether or not the transactions contemplated hereby or thereby shall be
consummated, and all reasonable out-of-pocket costs and expenses (including
Attorney Costs and any Taxes) incurred by the Administrative Agent, the
Collateral Agent and each Lender after an Event of Default in connection with
the collection of the Obligations or the enforcement of this Agreement the
other Loan Documents or any such other documents or during any workout,
restructuring or negotiations in respect thereof.  In addition, the Company agrees to pay, and
to save the Administrative Agent, the Collateral Agent and the Lenders harmless
from all liability for, any fees of the Company’s auditors in connection with
any reasonable exercise by the Administrative Agent, the Collateral Agent and
the Lenders of their rights pursuant to Section 10.2.  All Obligations provided for in this Section 15.5
shall survive repayment of the Loans, cancellation of the Notes, expiration or
termination of the Letters of Credit and/or the Existing Letters of Credit and
termination of this Agreement.

 

15.6        Assignments;
Participations.

 

15.6.1               Assignments.

 

(a)           Any
Lender may at any time assign to one or more Persons (any such Person, an “Assignee”)
all or any portion of such Lender’s Loans and Commitments, with the prior
written consent of the Administrative Agent, the Issuing Lenders and, so long
as no Event of Default exists, the Company (which consent by the Administrative
Agent, the Issuing Lenders and the Company shall not be unreasonably withheld
or delayed and shall not be required for an assignment by a Lender to a Lender
or an Affiliate of a Lender).  Except as
the Administrative Agent may otherwise agree, any such assignment shall be in a
minimum aggregate amount equal to $5,000,000 or, if less, the remaining
Commitment and Loans held by the assigning Lender.  The Company and the Administrative Agent
shall be entitled to continue to deal solely and directly with such Lender in
connection with the interests so assigned to an Assignee until the
Administrative Agent shall have received and accepted an effective assignment
agreement in substantially the form of Exhibit C hereto (an “Assignment
Agreement”) executed, delivered and fully completed by’ the applicable
parties thereto and a processing fee of $2,500. 
No assignment may be made to any Person if at the time of such
assignment the Company would be obligated to pay any greater amount under Section 7.6
or 8 to the Assignee than the Company is then obligated to pay to the
assigning Lender under such Sections (and if any assignment is made in
violation of the foregoing, the Company will not be 

 

92

 

required to pay such greater amounts).  Any attempted assignment not made in
accordance with this Section 15.6.1 shall be treated as the sale of
a participation under Section 15.6.2.  The Company shall be deemed to have granted
its consent to any assignment requiring its consent hereunder unless the
Company has expressly objected to such assignment within three Business Days
after notice thereof.

 

(b)           From
and after the date on which the conditions described above have been met, (i) such
Assignee shall be deemed automatically to have become a party hereto and, to
the extent that rights and obligations hereunder have been assigned to such
Assignee pursuant to such Assignment Agreement, shall have the rights and
obligations of a Lender hereunder and (ii) the assigning Lender, to the
extent that rights and obligations hereunder have been assigned by it pursuant
to such Assignment Agreement, shall be released from its rights (other than its
indemnification rights) and obligations hereunder.  Upon the request of the Assignee (and, as
applicable, the assigning Lender) pursuant to an effective Assignment
Agreement, the Company shall execute and deliver to the Administrative Agent
for delivery to the Assignee (and, as applicable, the assigning Lender) a Note
in the principal amount of the Assignee’s Pro Rata Share of the Revolving
Commitment (and, as applicable, a Note in the principal amount of the Pro Rata
Share of the Revolving Commitment retained by the assigning Lender.  Each such Note shall be dated the effective
date of such assignment.  Upon receipt by
the assigning Lender of such Note, the assigning Lender shall return to the Company
any prior Note held by it.

 

(c)           Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal
Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

 

15.6.2               Participations.

 

Any
Lender may at any time sell to one or more Persons participating interests in
its Loans, Commitments or other interests hereunder (any such Person, a “Participant”).  In the event of a sale by a Lender of a
participating interest to a Participant, (a) such Lender’s obligations
hereunder shall remain unchanged for all purposes, (b) the Company and the
Administrative Agent shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations hereunder and (c) all
amounts payable by the Company shall be determined as if such Lender had not
sold such participation and shall be paid directly to such Lender.  No Participant shall have any direct or
indirect voting rights hereunder except with respect to any event described in Section 15.1
expressly requiring the unanimous vote of all Lenders or, as applicable, all 

 

93

 

affected Lenders. 
Each Lender agrees to incorporate the requirements of the preceding sentence
into each participation agreement which such Lender enters into with any
Participant.  The Company agrees that if
amounts outstanding under this Agreement are due and payable (as a result of
acceleration or otherwise), each Participant shall be deemed to have the right
of set-off in respect of its participating interest in amounts owing under this
Agreement and with respect to any Letter of Credit or Existing Letter of Credit
to the same extent as if the amount of its participating interest were owing
directly to it as a Lender under this Agreement; provided that such
right of set-off shall be subject to the obligation of each Participant to
share with the Lenders, and the Lenders agree to share with each Participant,
as provided in Section 7.5. 
The Company also agrees that each Participant shall be entitled to the
benefits of Section 7.6 or 8 as if it were a Lender (provided
that on the date of the participation no Participant shall be entitled to any
greater compensation pursuant to Section 7.6 or 8 than would have
been paid to the participating Lender on such date if no participation had been
sold and that each Participant complies with Section 7.6(d) as
if it were an Assignee).

 

15.7        Register.

 

The Administrative
Agent shall maintain a copy of each Assignment Agreement delivered and accepted
by it and register (the “Register”) for the recordation of names and
addresses of the Lenders and the Commitment of each Lender from time to time
and whether such Lender is the original Lender or the Assignee.  No assignment shall be effective unless and
until the Assignment Agreement is accepted and registered in the Register.  All records of transfer of a Lender’s
interest in the Register shall be conclusive, absent manifest error, as to the
ownership of the interests in the Loans. 
The Administrative Agent shall not incur any liability of any kind with
respect to any Lender with respect to the maintenance of the Register.

 

15.8        GOVERNING LAW.

 

THIS AGREEMENT AND EACH NOTE SHALL BE A CONTRACT
MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE,
WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

 

15.9        Confidentiality.

 

As required by
federal law and the Administrative Agent’s policies and practices, the
Administrative Agent may need to obtain, verify, and record certain customer
identification information and documentation in connection with opening or
maintaining accounts, or establishing or continuing to provide services.  The Administrative Agent, the Collateral
Agent and each Lender agree to use commercially reasonable efforts (equivalent
to the efforts the Administrative Agent, the Collateral Agent or such Lender
applies to maintain the confidentiality of its own confidential information) to
maintain as confidential all information provided to them 

 

94

 

by any Loan Party or Guarantor and designated as confidential, except
that the Administrative Agent, the Collateral Agent and each Lender may
disclose such information (a) to Persons employed or engaged by the
Administrative Agent, the Collateral Agent or such Lender in evaluating,
approving, structuring or administering the Loans and the Commitments; (b) to
any assignee or participant or potential assignee or participant that has
agreed to comply with the covenant contained in this Section 15.9
(and any such assignee or participant or potential assignee or participant may
disclose such information to Persons employed or engaged by them as described
in clause (a) above); (c) as required or requested by any federal or
state regulatory authority or examiner, or any insurance industry association,
or as reasonably believed by the Administrative Agent, the Collateral Agent or
such Lender to be compelled by any court decree, subpoena or legal or
administrative order or process; (d) as, on the advice of the
Administrative Agent’s, the Collateral Agent’s or such Lender’s counsel, is
required by law; (e) in connection with the exercise of any right or
remedy under the Loan Documents or in connection with any litigation to which
the Administrative Agent, the Collateral Agent or such Lender is a party; (f) to
any nationally recognized rating agency that requires access to information
about a Lender’s investment portfolio in connection with ratings issued with
respect to such Lender; (g) to any Affiliate of the Administrative Agent,
the Collateral Agent, any Issuing Lender or any other Lender who may provide
Bank Products to the Loan Parties or Guarantors; or (h) that ceases to be
confidential through no fault of the Administrative Agent, the Collateral Agent
or any Lender.  Notwithstanding the
foregoing, the Company consents to the publication by the Administrative Agent
or any Lender of a tombstone or similar advertising material relating to the
financing transactions contemplated by this Agreement, and the Administrative
Agent reserves the right to provide to industry trade organizations information
necessary and customary for inclusion in league table measurements.

 

15.10      Severability.

 

Whenever possible
each provision of this Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this
Agreement shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining
provisions of this Agreement.  All obligations
of the Company and rights of the Administrative Agent and the Lenders expressed
herein or in any other Loan Document shall be in addition to and not in
limitation of those provided by applicable law.

 

15.11      Nature of Remedies.

 

All Obligations of
the Company and rights of the Administrative Agent, the Collateral Agent and
the Lenders expressed herein or in any other Loan Document shall be in addition
to and not in limitation of those provided by applicable law.  No failure to exercise and no delay in
exercising, on the part of the Administrative Agent, the Collateral Agent or
any Lender, any right, remedy, power or privilege hereunder, shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege.

 

95

 

15.12      Entire Agreement.

 

This Agreement,
together with the other Loan Documents, embodies the entire agreement and understanding
among the parties hereto and supersedes all prior or contemporaneous agreements
and understandings of such Persons, verbal or written, relating to the subject
matter hereof and thereof (except as relates to the fees described in Section 5.3)  and any prior arrangements made with respect to the payment
by the Company of (or any indemnification for) any fees, costs or expenses
payable to or incurred (or to be incurred) by or on behalf of the
Administrative Agent, the Collateral Agent or the Lenders.

 

15.13      Counterparts.

 

This Agreement may
be executed in any number of counterparts and by the different parties hereto
on separate counterparts and each such counterpart shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same Agreement.  Receipt of an executed
signature page to this Agreement by facsimile or other electronic
transmission shall constitute effective delivery thereof.  Electronic records of executed Loan Documents
maintained by the Lenders shall deemed to be originals.

 

15.14      Successors and Assigns.

 

This Agreement
shall be binding upon the Company, the Lenders, the Administrative Agent, the
Collateral Agent and their respective successors and assigns, and shall inure
to the benefit of the Company, the Lenders, the Administrative Agent and the
Collateral Agent and the successors and assigns of the Lenders, the
Administrative Agent and the Collateral Agent. 
No other Person shall be a direct or indirect legal beneficiary of, or
have any direct or indirect cause of action or claim in connection with, this
Agreement or any of the other Loan Documents. 
The Company may not assign or transfer any of its rights or Obligations
under this Agreement without the prior written consent of the Administrative Agent
and each Lender.

 

15.15      Captions.

 

Section captions
used in this Agreement are for convenience only and shall not affect the
construction of this Agreement.

 

15.16      Indemnification by the
Company.

 

IN
CONSIDERATION OF THE EXECUTION AND DELIVERY OF THIS AGREEMENT BY THE
ADMINISTRATIVE AGENT, THE COLLATERAL AGENT, THE ISSUING LENDERS AND THE LENDERS
AND THE AGREEMENT TO EXTEND THE COMMITMENTS PROVIDED HEREUNDER, THE COMPANY
HEREBY AGREES TO INDEMNIFY, EXONERATE AND HOLD THE ADMINISTRATIVE AGENT, THE COLLATERAL
AGENT, THE ISSUING LENDERS, EACH LENDER AND EACH OF THE OFFICERS, DIRECTORS,
EMPLOYEES, AFFILIATES AND AGENTS OF THE ADMINISTRATIVE AGENT, THE COLLATERAL
AGENT, THE IS SUING LENDERS AND EACH LENDER (EACH A “LENDER PARTY”) FREE AND 

 

96

 

HARMLESS FROM AND AGAINST ANY AND ALL ACTIONS,
CAUSES OF ACTION, SUITS, LOSSES, LIABILITIES, DAMAGES AND EXPENSES, INCLUDING
ATTORNEY COSTS (COLLECTIVELY, THE “INDEMNIFIED LIABILITIES”), INCURRED BY THE
LENDER PARTIES OR ANY OF THEM AS A RESULT OF, OR ARISING OUT OF, OR RELATING TO
(A) ANY TENDER OFFER, MERGER, PURCHASE OF CAPITAL SECURITIES, PURCHASE OF
ASSETS (INCLUDING THE RELATED TRANSACTIONS) OR OTHER SIMILAR TRANSACTION
FINANCED OR PROPOSED TO BE FINANCED IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, WITH THE PROCEEDS OF ANY OF THE LOANS, (B) THE USE, HANDLING,
RELEASE, EMISSION, DISCHARGE, TRANSPORTATION, STORAGE, TREATMENT OR DISPOSAL OF
ANY HAZARDOUS SUBSTANCE AT ANY PROPERTY OWNED OR LEASED BY ANY LOAN PARTY, (C) ANY
VIOLATION OF ANY ENVIRONMENTAL LAWS WITH RESPECT TO CONDITIONS AT ANY PROPERTY
OWNED OR LEASED BY ANY LOAN PARTY OR THE OPERATIONS CONDUCTED THEREON, (D) THE
INVESTIGATION, CLEANUP OR REMEDIATION OF OFFSITE LOCATIONS AT WHICH ANY LOAN
PARTY OR THEIR RESPECTIVE PREDECESSORS ARE ALLEGED TO HAVE DIRECTLY OR
INDIRECTLY DISPOSED OF HAZARDOUS SUBSTANCES OR (E) THE EXECUTION,
DELIVERY, PERFORMANCE OR ENFORCEMENT OF THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT BY ANY OF THE LENDER PARTIES, EXCEPT FOR ANY SUCH INDEMNIFIED
LIABILITIES ARISING ON ACCOUNT OF THE APPLICABLE LENDER PARTY’S GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT AS DETERMINED BY A FINAL, NONAPPEALABLE
JUDGMENT BY A COURT OF COMPETENT JURISDICTION. 
IF AND TO THE EXTENT THAT THE FOREGOING UNDERTAKING MAY BE
UNENFORCEABLE FOR ANY REASON, THE COMPANY HEREBY AGREES TO MAKE THE MAXIMUM
CONTRIBUTION TO THE PAYMENT AND SATISFACTION OF EACH OF THE INDEMNIFIED
LIABILITIES WHICH IS PERMISSIBLE UNDER APPLICABLE LAW.  ALL OBLIGATIONS PROVIDED FOR IN THIS SECTION 15.16
SHALL SURVIVE REPAYMENT OF THE LOANS, CANCELLATION OF THE NOTES, EXPIRATION OR
TERMINATION OF THE LETTERS OF CREDIT, ANY FORECLOSURE UNDER, OR ANY
MODIFICATION, RELEASE OR DISCHARGE OF, ANY OR ALL OF THE COLLATERAL DOCUMENTS
AND TERMINATION OF THIS AGREEMENT.

 

15.17      Nonliability of Lenders.

 

The relationship
between the Company on the one hand and the Lenders and the Administrative
Agent, the Collateral Agent and the Issuing Lenders on the other hand shall be
solely that of borrower and lender. 
Neither the Administrative Agent , the Collateral Agent, the Issuing
Lenders, Bank of America as the issuer of Existing Letters of Credit, Wells, as
the issuer of the Existing Letters of Credit nor any Lender has any fiduciary
relationship with or duty to any Loan Party or Guarantor arising out of or in
connection with this Agreement or any of the other Loan Documents, and the
relationship between the Loan Parties and the Guarantors, on the one hand, and
the Administrative Agent, the Collateral Agent, the Issuing Lenders, Bank of
America as the issuer of Existing Letters of Credit, Wells as the issuer of the
Existing Letters of Credit and the Lenders, on the other hand, in connection
herewith or therewith is solely that of 

 

97

 

debtor and creditor.  Neither the
Administrative Agent, the Collateral Agent, the Issuing Lenders, Bank of
America as the issuer of Existing Letters of Credit, Wells as the issuer of
Existing Letters of Credit nor any Lender undertakes any responsibility to any
Loan Party or Guarantor to review or inform any Loan Party or Guarantor of any
matter in connection with any phase of any Loan Party’s or Guarantor’s business
or operations.  The Company agrees, on
behalf of itself and each other Loan Party and Guarantor, that neither the
Administrative Agent, the Collateral Agent, any Issuing Lender, Bank of America
as the issuer of Existing Letters of Credit, Wells as the issuer of the
Existing Letters of Credit nor any Lender shall have liability to any Loan
Party or Guarantor (whether sounding in tort, contract or otherwise) for losses
suffered by any Loan Party or Guarantor in connection with, arising out of or
in any way related to the transactions contemplated and the relationship
established by the Loan Documents, or any act, omission or event occurring in
connection therewith, unless it is determined in a final non-appealable
judgment by a court of competent jurisdiction that such losses resulted from
the gross negligence or willful misconduct of the party from which recovery is
sought.  NO LENDER
PARTY OR LOAN PARTY OR GUARANTOR SHALL BE LIABLE FOR ANY DAMAGES ARISING FROM
THE USE BY OTHERS OF ANY INFORMATION OR OTHER MATERIALS OBTAINED THROUGH
INTRALINKS OR OTHER SIMILAR INFORMATION TRANSMISSION SYSTEMS IN CONNECTION WITH
THIS AGREEMENT, NOR SHALL ANY LENDER PARTY OR LOAN PARTY OR GUARANTOR HAVE ANY
LIABILITY WITH RESPECT THERETO, EXCEPT AS A RESULT OF ITS OWN GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT.  The
Company acknowledges that it has been advised by counsel in the negotiation,
execution and delivery of this Agreement and the other Loan Documents to which
it is a party.  No joint venture is
created hereby or by the other Loan Documents or otherwise exists by virtue of
the transactions contemplated hereby among the Lenders or among the Loan
Parties, Guarantors and the Lenders.

 

15.18      Forum Selection and
Consent to Jurisdiction.

 

ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED
EXCLUSIVELY IN THE COURTS OF THE STATE OF ILLINOIS OR IN THE UNITED STATES
DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS; PROVIDED THAT
NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE THE
ADMINISTRATIVE AGENT FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY
OTHER JURISDICTION.  THE COMPANY HEREBY
EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE
STATE OF ILLINOIS AND OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN
DISTRICT OF ILLINOIS FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH
ABOVE.  THE COMPANY FURTHER IRREVOCABLY
CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY
PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF ILLINOIS.  THE COMPANY HEREBY EXPRESSLY AND IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW
OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH 

 

98

 

LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO
ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

 

15.19      Waiver of Jury Trial.

 

EACH OF THE COMPANY, THE ADMINISTRATIVE AGENT, THE
COLLATERAL AGENT, ANY ISSUING LENDER, BANK OF AMERICA AS THE ISSUER OF EXISTING
LETTERS OF CREDIT,  WELLS AS THE ISSUER OF THE
EXISTING LETTERS OF CREDIT AND EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL
BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS
AGREEMENT, ANY NOTE, ANY OTHER LOAN DOCUMENT AND ANY AMENDMENT, INSTRUMENT,
DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN
CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY LENDING RELATIONSHIP
EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, AND AGREES THAT ANY SUCH
ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

 

15.20      No Advisory or Fiduciary
Responsibility.

 

In connection with
all aspects of each transaction contemplated hereby, the Company acknowledges
and agrees, and acknowledges its Affiliates’ understanding, that: (i) the credit facility provided for hereunder and any
related arranging or other services in connection therewith (including in
connection with any amendment, waiver or other modification hereof or of any
other Loan Document) are an arm’s-length commercial transaction between the
Company and its Affiliates, on the one hand, and the
Administrative Agent and BAS, on the other hand, and the Company is capable of
evaluating and understanding and understands and accepts the terms, risks and
conditions of the transactions contemplated hereby and by the other Loan
Documents (including any amendment, waiver or other modification hereof or
thereof); (ii) in connection with the process leading to such transaction,
the Administrative Agent and BAS each is and has been acting solely as a
principal and is not the financial advisor, agent or fiduciary, for the Company
or any of Affiliates, stockholders, creditors or employees or any other Person;
(iii) neither the Administrative Agent nor BAS has assumed or will assume
an advisory, agency or fiduciary responsibility in favor of the Company with
respect to any of the transactions contemplated hereby or the process leading
thereto, including with respect to any amendment, waiver or other modification hereof
or of any other Loan Document (irrespective of whether the Administrative Agent
or BAS has advised or is currently advising the Company or any of its
Affiliates on other matters) and neither the Administrative Agent nor BAS has
any obligation to the Company or any of its Affiliates with respect to the
transactions contemplated hereby except those obligations expressly set forth
herein and in the other Loan Documents; (iv) the Administrative Agent and
BAS and their respective Affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of the Company and
its Affiliates, and neither the Administrative Agent nor BAS has any obligation
to disclose any of such interests by virtue of any advisory, agency or fiduciary
relationship; and (v) the Administrative Agent and BAS have not provided
and will not provide any legal, accounting, regulatory or tax advice with 

 

99

 

respect to any of the transactions contemplated hereby (including any
amendment, waiver or other modification hereof or of any other Loan Document)
and the Company has consulted its own legal, accounting, regulatory and tax
advisors to the extent it has deemed appropriate.  The Company hereby waives and releases, to
the fullest extent permitted by law, any claims that it may have against the
Administrative Agent or BAS with respect to any breach or alleged breach of
agency or fiduciary duty.

 

15.21      USA PATRIOT Act Notice.

 

Each Lender that
is subject to the Act (as hereinafter defined) and the Administrative Agent
(for itself and not on behalf of any Lender) hereby notifies the Company that
pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Act”), it is
required to obtain, verify and record information that identifies each Loan
Party, which information includes the name and address of each Loan Party and
other information that will allow such Lender or the Administrative Agent, as
applicable, to identify each Loan Party in accordance with the Act.

 

[signature pages follow]

 

100

 

The
parties hereto have caused this Agreement to be duly executed and delivered by
their duly authorized officers as of the date first set forth above.

 

	
   

  	
  STANDARD PARKING CORPORATION,

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  	
  /s/ G. Marc Baumann

  	 

	
   

  	
  Name:

  	
  G. Marc Baumann

  	 

	
   

  	
  Title:

  	
  Executive Vice President and

  	 

	
   

  	
   

  	
  Chief Financial Officer

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  BANK OF AMERICA, N.A.,

  	 

	
   

  	
  as Administrative Agent, Issuing Lender and as a

  Lender

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  	
  /s/ Charlene Wright-Jones

  	 

	
   

  	
  Name:

  	
  Charlene Wright-Jones

  	 

	
   

  	
  Title:

  	
   

  	
  Assistant Vice President

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  WELLS FARGO BANK N.A.,

  	 

	
   

  	
  as Syndication Agent, Issuing Lender and as a

  Lender

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  	
  /s/ Steven Nickas

  	 

	
   

  	
  Name:

  	
   

  	
  Steven Nickas

  
	
   

  	
  Title:

  	
   

  	
  Vice President

  	 

								

 

 

	
   

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
  as Issuing Lender and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Craig W. McGuire

  
	
   

  	
  Name:

  	
  Craig W. McGuire

  
	
   

  	
  Title:

  	
   

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  [page break]

  
	
   

  	
   

  
	
  LENDERS:

  	
   

  
	
   

  	
   

  
	
   

  	
  FIRST HAWAIIAN BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Dawn Hofmann

  
	
   

  	
  Name:

  	
  Dawn Hofmann

  
	
   

  	
  Title:

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  [page break]

  
	
   

  	
   

  
	
   

  	
  U.S. BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ F. August Haug

  
	
   

  	
  Name:

  	
  F. August Haug

  
	
   

  	
  Title:

  	
   

  	
  Assistant Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  [page break]

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Janet Ahkhan

  
	
   

  	
  Name:

  	
  Janet Ahkhan

  
	
   

  	
  Title:

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  [page break]

  
	
   

  	
   

  
	
   

  	
  FIFTH THIRD BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Daniel J. McHugh

  
	
   

  	
  Name:

  	
  Daniel J. McHugh

  
	
   

  	
  Title:

  	
   

  	
  Vice President

  
								

 

 

ANNEX A

 

LENDERS AND PRO
RATA SHARES

 

	
  Lender

  	
   

  	
  Revolving Commitment

  Amount

  	
   

  	
  Pro Rata Share

  	
   

  
	
  Bank of America,
  N.A.

  	
   

  	
  $

  	
  60,000,000

  	
   

  	
  28.571428571

  	
  %

  
	
  Wells Fargo
  Bank, N.A.

  	
   

  	
  $

  	
  55,000,000

  	
   

  	
  26.190476190

  	
  %

  
	
  Fifth Third Bank

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  11.904761905

  	
  %

  
	
  JPMorgan Chase
  Bank, N.A.

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  11.904761905

  	
  %

  
	
  U.S. Bank
  National Association

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  11.904761905

  	
  %

  
	
  First Hawaiian
  Bank

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  9.523809524

  	
  %

  
	
  TOTAL

  	
   

  	
  $

  	
  210,000,000

  	
   

  	
  100.00000000

  	
  %

  

 

 

ANNEX B

 

ADDRESSES FOR
NOTICES

 

Address for All Loan
Parties:

 

If to Borrower:

 

Standard Parking
Corporation

900 North Michigan Avenue

Chicago, Illinois 60611

 

Attention:  G. Marc Baumann

Telephone:  312-274-2199

Telecopier:  312-640-6165

Electronic Mail: mbaumann@standardparking.com

 

With a Copy to:

 

Schwartz Cooper Chartered

180 North LaSalle Street,
Suite 2700

Chicago, IL 60601

 

Attention: Andrew H.
Connor

Telephone: (312) 845-5118

Telecopier:  (312) 782-8416

Electronic Mail:  AConnor@schwartzcooper.com

 

Address for
Administrative Agent:

 

For Payments and Requests for
Credit Extensions:

 

Bank of America

Global Product Solutions

231 S. LaSalle Street

Mail Code IL1-231-10-41

Chicago, IL 60604

 

Attention:  Charlene Wright-Jones

AVP, Agency Management

Telephone:  312.828.3935

Facsimile:  877.206.8427

 

Wire Instructions:

 

	
  ABA #: 

  	
  026009593

  
	
  Account #: 

  	
  1292000883

  
	
  Attention: 

  	
  Credit Services

  
	
  Ref: 

  	
  Standard Parking Corp.

  

 

 

Other Notices as Administrative
Agent:

 

Bank of America

231 South LaSalle Street

Chicago, IL  60697-0001

 

Attention:  Craig W. McGuire

Senior Vice President

Telephone:   312-828-1320

Facsimile:    312-974-0333

 

Address for Issuing
Lender:

 

Bank of America, N.A.

Alfonso Malave Jr

VP; OPERATIONS MANAGER

0202 TRADE SERVICES
STAND-BYS RI

Bank of America

Mail Code: PA6-580-02-30

1 FLEET WAY

SCRANTON PA 18507

Phone:  1.570.330.4212

Fax:  1.570.330.4186

Email:
alfonso.malave@bankofamerica.com

 

Wells Fargo Bank, N.A.

Steve Nickas

Vice President

230 W. Monroe St.

Suite 2900

Chicago, IL  60606

Phone:  (312) 762 – 9009

Fax:  (312) 795 – 9388

nickas@wellsfargo.com

 

 

EXHIBIT A

 

FORM OF

NOTE

 

                                ,         

 

The
undersigned, for value received, promises to pay to the order of
                                          
or registered assigns (the “Lender”), in accordance with the provisions
of the Credit Agreement (as hereinafter defined), the aggregate unpaid amount
of all Loans made to the undersigned by the Lender pursuant to the Credit
Agreement referred to below (as shown on the schedule attached hereto (and any
continuation thereof) or in the records of the Lender), such principal amount
to be payable on the dates set forth in the Credit Agreement.

 

The
undersigned further promises to pay interest on the unpaid principal amount of
each Loan from the date of such Loan until such Loan is paid in full, payable
at the rate(s) and at the time(s) set forth in the Credit
Agreement.  Payments of both principal
and interest are to be made in lawful money of the United States of America.

 

This
Note evidences indebtedness incurred under, and is subject to the terms and
provisions of, the Amended and Restated Credit Agreement, dated as of July     ,
2008 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement” terms not otherwise defined herein are used
herein as defined in the Credit Agreement), among the undersigned, certain
financial institutions (including the Lender), the Administrative Agent and
Collateral Agent, to which Credit Agreement reference is hereby made for a
statement of the terms and provisions under which this Note may or must be paid
prior to its due date or its due date accelerated.

 

This
Note is one of the Notes referred to in the Credit Agreement, is entitled to
the benefits thereof and may be prepaid in whole or in part subject to the terms
and conditions provided therein.  Upon
the occurrence and continuation of one or more of the Events of Default
specified in the Credit Agreement, all amounts then remaining unpaid on this
Note shall become, or may be declared to be, immediately due and payable all as
provided in the Credit Agreement.

 

This Note is made under
and governed by the laws of the State of Illinois applicable to contracts made
and to be performed entirely within such State.

 

 

	
   

  	
  STANDARD PARKING
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

2

 

EXHIBIT B

 

FORM OF
COMPLIANCE CERTIFICATE

 

To:          Bank of America, N.A., as
Administrative Agent

 

Please refer to the
Amended and Restated Credit Agreement dated as of July     ,
2008  (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”) among
Standard Parking Corporation (the “Company”), various financial
institutions and Bank of America, N.A., as Administrative Agent and Collateral
Agent.  Terms used but not otherwise
defined herein are used herein as defined in the Credit Agreement.

 

I.                                                         Reports.
Enclosed herewith is a copy of the [annual audited/quarterly] report of the
Company as at           ,
                    (the “Computation Date”), which report
fairly presents in all material respects the financial condition and results of
operations [(subject to the absence of footnotes and to normal year-end
adjustments)] of the Company as of the Computation Date and has been prepared
in accordance with GAAP consistently applied.

 

II.                                                     Financial
Tests. The Company hereby certifies and warrants to you that the following
is a true and correct computation as at the Computation Date of the following
ratios and/or financial restrictions contained in the Credit Agreement:

 

[REVISE AS
APPROPRIATE]

 

A.            Section 11.13.1
- Minimum Fixed Charge Coverage Ratio

 

	
  1.

  	
   

  	
  EBITDA

  	
   

  	
  $

  	
                

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Income taxes paid or
  payable in cash

  	
   

  	
  $

  	
                

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Unfinanced Capital
  Expenditures

  	
   

  	
  $

  	
                

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Sum of (2) and (3)

  	
   

  	
  $

  	
                

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Remainder of
  (1) minus (4)

  	
   

  	
  $

  	
                

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  cash Interest Expense

  	
   

  	
   

  
	
   

  	
   

  	
  (net of cash interest
  income)

  	
   

  	
  $

  	
                

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Required payments of

  	
   

  	
   

  
	
   

  	
   

  	
  principal of Funded
  Debt

  	
   

  	
   

  
	
   

  	
   

  	
  (excluding Revolving
  Loans)

  	
   

  	
  $

  	
                

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Sum of (6) and (7)

  	
   

  	
  $

  	
                

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Ratio of (5) to
  (8)

  	
   

  	
             

  	
  to 1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Minimum Required by
  Section 11.13.1

  	
   

  	
  2.0 to 1.0

  
										

 

 

B.            Section 11.13.2
- Maximum Total Debt to EBITDA Ratio

 

	
  1.

  	
   

  	
  Total Debt

  	
   

  	
  $

  	
                

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  EBITDA

  	
   

  	
  $

  	
                

  
	
   

  	
   

  	
  (from Item
  A(1) above)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Ratio of (1) to
  (2)

  	
   

  	
            

  	
  to 1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Maximum allowed

  	
   

  	
            

  	
  to 1

  
								

 

The Company further
certifies to you that no Event of Default or Unmatured Event of Default has
occurred and is continuing.

 

The Company has caused
this Certificate to be executed and delivered by its duly authorized officer on
                ,20    .

 

	
   

  	
  STANDARD PARKING
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

2

 

EXHIBIT C

 

FORM OF

ASSIGNMENT
AGREEMENT

 

Date:                                   

 

To:          Standard Parking Corporation

 

and

 

Bank of America, as
Administrative Agent

 

Re:          Assignment under the Credit Agreement
referred to below

 

Gentlemen and Ladies:

 

Please refer to Section 15.6.1
of the Amended and Restated Credit Agreement dated as of July     ,
2008 (as amended or otherwise modified from time to time, the “Credit
Agreement”) among Standard Parking Corporation (the “Company”),
various financial institutions and Bank of America, N.A., as administrative
agent and collateral agent (in each such capacity, the “Administrative Agent”
or the “Collateral Agent”). 
Unless otherwise defined herein or the context otherwise requires, terms
used herein have the meanings provided in the Credit Agreement.

 

                                    
(the “Assignor”) hereby sells and assigns, without recourse, to (the “Assignee”),
and the Assignee hereby purchases and assumes from the Assignor, that interest
in and to the Assignor’s rights and obligations under the Credit Agreement as
of the date hereof equal to
            % of
all of the Loans, of the participation interests in the Letters of Credit,
Existing Letters of Credit and of the Commitments, such sale, purchase,
assignment and assumption to be effective as
of          ,
                      ,
or such later date on which the Company and the Administrative Agent shall have
consented hereto (the “Effective Date”). After giving effect to such
sale, purchase, assignment and assumption, the Assignee’s and the Assignor’s
respective Percentages for purposes of the Credit Agreement will be as set
forth opposite their names on the signature pages hereof.

 

The Assignor hereby
instructs the Administrative Agent to make all payments from and after the
Effective Date in respect of the interest assigned hereby directly to the
Assignee. The Assignor and the Assignee agree that all interest and fees
accrued up to, but not including, the Effective Date are the property of the
Assignor, and not the Assignee. The Assignee agrees that, upon receipt of any
such interest or fees, the Assignee will promptly remit the same to the
Assignor.

 

 

The Assignor represents
and warrants that it is the legal and beneficial owner of the interest being
assigned by it hereunder and that such interest is free and clear of any
adverse claim.

 

The Assignee represents
and warrants to the Company and the Administrative Agent that, as of the date
hereof; the Company will not be obligated to pay any greater amount under Section 7.6
or 8 of the Credit Agreement than the Company is obligated to pay to the
Assignor under such Section. [The Assignee has delivered, or is delivering
concurrently herewith, to the Company and the Administrative Agent the forms
required by Section 7.6 of the Credit Agreement.] [INSERT IF ASSIGNEE IS
ORGANIZED UNDER THE LAWS OF A JURISDICTION OTHER THAN THE UNITED STATES OF
AMERICA OR A STATE THEREOF.] The [Assignee/Assignor] [Borrower] shall pay the
fee payable to the Administrative Agent pursuant to Section 15.6.1.

 

The Assignee hereby
confirms that it has received a copy of the Credit Agreement.  Except as otherwise provided in the Credit
Agreement, effective as of the Effective Date:

 

(a)           the Assignee (i) shall
be deemed automatically to have become a party to the Credit Agreement and to
have all the rights and obligations of a “Lender” under the Credit Agreement as
if it were an original signatory thereto to the extent specified in the second
paragraph hereof; and (ii) agrees to be bound by the terms and conditions
set forth in the Credit Agreement as if it were an original signatory thereto;
and

 

(b)           the Assignor
shall be released from its obligations under the Credit Agreement to the extent
specified in the second paragraph hereof.

 

The Assignee hereby
advises each of you of the following administrative details with respect to the
assigned Loans and Commitment:

 

(A)          Institution Name:

 

Address:

 

Attention:

 

Telephone:

 

Facsimile:

 

(B)           Payment Instructions:

 

This Assignment shall be
governed by and construed in accordance with the laws of the State of Illinois.

 

2

 

Please evidence your
receipt hereof and your consent to the sale, assignment, purchase and assumption
set forth herein by signing and returning counterparts hereof to the Assignor
and the Assignee.

 

	
  Percentage =       %

  	
  [ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Adjusted Percentage =       %

  	
  [ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

 

ACKNOWLEDGED AND CONSENTED
TO

 

this
                      
day of              

 

BANK OF AMERICA, N.A., as
Administrative Agent

 

 

	
  By:

  	
   

  
	
  Title:

  	
   

  
			

 

 

ACKNOWLEDGED AND
CONSENTED TO

this
                      
day of              

 

STANDARD PARKING
CORPORATION

 

 

	
  By:

  	
   

  
	
  Title:

  	
   

  
			

 

 

3

 

EXHIBIT D

 

FORM OF LOAN NOTICE

 

Date: 
                    ,
20         

 

To:          Bank of America, N.A., as
Administrative Agent

 

Re:                               Amended and Restated Credit Agreement dated as of July     ,
2008  (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”) among
Standard Parking Corporation (the “Company”), various financial
institutions and Bank of America, N.A., as Administrative Agent and Collateral
Agent.  Capitalized terms used but
not otherwise defined herein have the meanings provided in the Credit
Agreement.

 

Ladies
and Gentlemen:

 

The
undersigned hereby requests (select one):

 

o  A Borrowing of Revolving Loans

 

o  A conversion or continuation of Revolving
Loans

 

1.             On
                              ,
20       (which is a Business Day).

 

2.             In the amount of
$                    .

 

3.             Comprised of
                            
(Type of Loan requested).

 

4.             For LIBOR Loans: with an Interest
Period of
                    
months.

 

The
Borrower hereby represents and warrants that (a) after giving effect to
any Borrowing of Revolving Loans, (i) the Revolving Outstandings shall not
exceed the Revolving Commitment, and (ii) the aggregate Outstanding Amount
of the Revolving Loans of any Lender plus such Lender’s Pro Rata Share
of the Outstanding Amount of all L/C Obligations plus such Lender’s Pro Rata
Share of the Outstanding Amount of all Swing Line Loans shall not exceed such
Lender’s Revolving Commitments and (b) all of the conditions contained in Section 12.2
of the Credit Agreement have been satisfied on and as of the date hereof, and
will continue to be satisfied on and as of the date of the Borrowing,
conversion or continuation requested hereby, before and after giving effect
thereto.

 

 

	
   

  	
  STANDARD PARKING
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

2EXHIBIT
10.1

 

 

SECOND
AMENDED AND RESTATED CREDIT AGREEMENT

 

DATED
AS OF JULY 17, 2008

 

AMONG

 

LTC
PROPERTIES, INC.

 

THE
GUARANTORS FROM TIME TO TIME PARTIES HERETO,

 

THE
LENDERS FROM TIME TO TIME PARTIES HERETO,

 

AND

 

BANK
OF MONTREAL, CHICAGO BRANCH,

as
Administrative Agent

 

 

BMO
CAPITAL MARKETS,

as
Co-Lead Arranger and Book Manager and

 

KEY
BANK NATIONAL ASSOCIATION,

as Co-Lead Arranger and Syndication Agent

 

 

 

TABLE OF CONTENTS

 

	
  SECTION

  	
   

  	
  HEADING

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.

  	
   

  	
  THE
  CREDIT FACILITIES

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
   

  	
  Commitments

  	
   

  	
  1

  
	
  Section 1.2.

  	
   

  	
  Letters of Credit

  	
   

  	
  2

  
	
  Section 1.3.

  	
   

  	
  Applicable Interest Rates

  	
   

  	
  4

  
	
  Section 1.4.

  	
   

  	
  Minimum Borrowing Amounts; Maximum
  Eurodollar Loans

  	
   

  	
  6

  
	
  Section 1.5.

  	
   

  	
  Manner of Borrowing Loans and
  Designating Applicable Interest Rates

  	
   

  	
  6

  
	
  Section 1.6.

  	
   

  	
  Interest Periods

  	
   

  	
  8

  
	
  Section 1.7.

  	
   

  	
  Maturity of Loans

  	
   

  	
  8

  
	
  Section 1.8.

  	
   

  	
  Prepayments

  	
   

  	
  9

  
	
  Section 1.9.

  	
   

  	
  Default Rate

  	
   

  	
  9

  
	
  Section 1.10.

  	
   

  	
  The Notes

  	
   

  	
  10

  
	
  Section 1.11.

  	
   

  	
  Funding Indemnity

  	
   

  	
  10

  
	
  Section 1.12.

  	
   

  	
  Commitment Terminations

  	
   

  	
  11

  
	
  Section 1.13.

  	
   

  	
  Substitution of Lenders

  	
   

  	
  11

  
	
  Section 1.15.

  	
   

  	
  Increase in Revolving Credit
  Commitments

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
   

  	
  FEES

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
   

  	
  Fees

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
   

  	
  PLACE
  AND APPLICATION OF PAYMENTS

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
   

  	
  Place and Application of Payments

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
   

  	
  GUARANTIES

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
   

  	
  Guaranties

  	
   

  	
  15

  
	
  Section 4.2.

  	
   

  	
  Further Assurances

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
   

  	
  DEFINITIONS;
  INTERPRETATION

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
   

  	
  Definitions

  	
   

  	
  15

  
	
  Section 5.2.

  	
   

  	
  Interpretation

  	
   

  	
  33

  
	
  Section 5.3.

  	
   

  	
  Change in Accounting Principles

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
   

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
   

  	
  Organization and Qualification

  	
   

  	
  34

  
	
  Section 6.2.

  	
   

  	
  Subsidiaries

  	
   

  	
  34

  
	
  Section 6.3.

  	
   

  	
  Authority and Validity of
  Obligations

  	
   

  	
  35

  
	
  Section 6.4.

  	
   

  	
  Use of Proceeds; Margin Stock

  	
   

  	
  35

  
	
  Section 6.5.

  	
   

  	
  Financial Reports

  	
   

  	
  36

  
	
  Section 6.6.

  	
   

  	
  No Material Adverse Change

  	
   

  	
  36

  

 

 

	
  Section 6.7.

  	
   

  	
  Full Disclosure

  	
   

  	
  36

  
	
  Section 6.8.

  	
   

  	
  Trademarks, Franchises, and
  Licenses

  	
   

  	
  36

  
	
  Section 6.9.

  	
   

  	
  Governmental Authority and
  Licensing

  	
   

  	
  36

  
	
  Section 6.10.

  	
   

  	
  Good Title

  	
   

  	
  36

  
	
  Section 6.11.

  	
   

  	
  Litigation and Other Controversies

  	
   

  	
  37

  
	
  Section 6.12.

  	
   

  	
  Taxes

  	
   

  	
  37

  
	
  Section 6.13.

  	
   

  	
  Approvals

  	
   

  	
  37

  
	
  Section 6.14.

  	
   

  	
  Affiliate Transactions

  	
   

  	
  37

  
	
  Section 6.15.

  	
   

  	
  Investment Company; Public Utility
  Holding Company

  	
   

  	
  37

  
	
  Section 6.16.

  	
   

  	
  ERISA

  	
   

  	
  37

  
	
  Section 6.17.

  	
   

  	
  Compliance with Laws

  	
   

  	
  38

  
	
  Section 6.18.

  	
   

  	
  Other Agreements

  	
   

  	
  39

  
	
  Section 6.19.

  	
   

  	
  Solvency

  	
   

  	
  39

  
	
  Section 6.20.

  	
   

  	
  No Broker Fees.

  	
   

  	
  39

  
	
  Section 6.21.

  	
   

  	
  No Default

  	
   

  	
  39

  
	
  Section 6.22.

  	
   

  	
  Stock of the Borrower

  	
   

  	
  39

  
	
  Section 6.23.

  	
   

  	
  Condition of Property; Casualties;
  Condemnation

  	
   

  	
  39

  
	
  Section 6.24.

  	
   

  	
  Legal Requirements, and Zoning

  	
   

  	
  40

  
	
  Section 6.25.

  	
   

  	
  Qualified Ground Leases

  	
   

  	
  40

  
	
  Section 6.26.

  	
   

  	
  No Defaults; Landlord is in
  Compliance with Leases

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
   

  	
  CONDITIONS
  PRECEDENT

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.1.

  	
   

  	
  All Credit Events

  	
   

  	
  40

  
	
  Section 7.2.

  	
   

  	
  Initial Credit Event

  	
   

  	
  41

  
	
  Section 7.3.

  	
   

  	
  Eligible Property Additions and
  Deletions to the Borrowing Base

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
   

  	
  COVENANTS

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.1.

  	
   

  	
  Maintenance of Business

  	
   

  	
  43

  
	
  Section 8.2.

  	
   

  	
  Maintenance of Properties

  	
   

  	
  43

  
	
  Section 8.3.

  	
   

  	
  Taxes and Assessments

  	
   

  	
  43

  
	
  Section 8.4.

  	
   

  	
  Insurance

  	
   

  	
  43

  
	
  Section 8.5.

  	
   

  	
  Financial Reports

  	
   

  	
  44

  
	
  Section 8.6.

  	
   

  	
  Inspection

  	
   

  	
  46

  
	
  Section 8.7.

  	
   

  	
  Office of Foreign Asset Control

  	
   

  	
  46

  
	
  Section 8.8.

  	
   

  	
  Liens

  	
   

  	
  46

  
	
  Section 8.9.

  	
   

  	
  Investments, Acquisitions, Loans
  and Advances

  	
   

  	
  46

  
	
  Section 8.10.

  	
   

  	
  Mergers, Consolidations and Sales

  	
   

  	
  48

  
	
  Section 8.11.

  	
   

  	
  Maintenance of Subsidiaries

  	
   

  	
  49

  
	
  Section 8.12.

  	
   

  	
  Intentionally Omitted

  	
   

  	
  49

  
	
  Section 8.13.

  	
   

  	
  ERISA

  	
   

  	
  49

  
	
  Section 8.14.

  	
   

  	
  Compliance with Laws

  	
   

  	
  49

  
	
  Section 8.15.

  	
   

  	
  Burdensome Contracts With
  Affiliates

  	
   

  	
  50

  
	
  Section 8.16.

  	
   

  	
  No Changes in Fiscal Year

  	
   

  	
  50

  
	
  Section 8.17.

  	
   

  	
  Intentionally Omitted

  	
   

  	
  50

  

 

ii

 

	
  Section 8.18.

  	
   

  	
  Change in the Nature of Business

  	
   

  	
  50

  
	
  Section 8.19.

  	
   

  	
  Use of Loan Proceeds

  	
   

  	
  50

  
	
  Section 8.20.

  	
   

  	
  No Restrictions

  	
   

  	
  50

  
	
  Section 8.21.

  	
   

  	
  Financial Covenants

  	
   

  	
  51

  
	
  Section 8.22.

  	
   

  	
  Borrowing Base Covenants

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
   

  	
  EVENTS
  OF DEFAULT AND REMEDIES

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 9.1.

  	
   

  	
  Events of Default

  	
   

  	
  52

  
	
  Section 9.2.

  	
   

  	
  Non-Bankruptcy Defaults

  	
   

  	
  54

  
	
  Section 9.3.

  	
   

  	
  Bankruptcy Defaults

  	
   

  	
  54

  
	
  Section 9.4.

  	
   

  	
  Collateral for Undrawn Letters of
  Credit

  	
   

  	
  54

  
	
  Section 9.5.

  	
   

  	
  Notice of Default

  	
   

  	
  55

  
	
  Section 9.6.

  	
   

  	
  Expenses

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
   

  	
  CHANGE
  IN CIRCUMSTANCES

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.1.

  	
   

  	
  Change of Law

  	
   

  	
  55

  
	
  Section 10.2.

  	
   

  	
  Unavailability of Deposits or
  Inability to Ascertain, or Inadequacy of, LIBOR

  	
   

  	
  56

  
	
  Section 10.3.

  	
   

  	
  Increased Cost and Reduced Return

  	
   

  	
  56

  
	
  Section 10.4.

  	
   

  	
  Lending Offices

  	
   

  	
  57

  
	
  Section 10.5.

  	
   

  	
  Discretion of Lender as to Manner
  of Funding

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
   

  	
  THE
  ADMINISTRATIVE AGENT

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 11.1.

  	
   

  	
  Appointment and Authorization of
  Administrative Agent

  	
   

  	
  58

  
	
  Section 11.2.

  	
   

  	
  Administrative Agent and its
  Affiliates

  	
   

  	
  58

  
	
  Section 11.3.

  	
   

  	
  Action by Administrative Agent

  	
   

  	
  58

  
	
  Section 11.4.

  	
   

  	
  Consultation with Experts

  	
   

  	
  59

  
	
  Section 11.5.

  	
   

  	
  Liability of Administrative Agent;
  Credit Decision

  	
   

  	
  59

  
	
  Section 11.6.

  	
   

  	
  Indemnity

  	
   

  	
  60

  
	
  Section 11.7.

  	
   

  	
  Resignation or Removal of
  Administrative Agent and Successor Administrative Agent

  	
   

  	
  60

  
	
  Section 11.8.

  	
   

  	
  L/C Issuer.

  	
   

  	
  61

  
	
  Section 11.9.

  	
   

  	
  Designation of Additional Agents

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
   

  	
  THE
  GUARANTEES

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 12.1.

  	
   

  	
  The Guarantees

  	
   

  	
  61

  
	
  Section 12.2.

  	
   

  	
  Guarantee Unconditional

  	
   

  	
  61

  
	
  Section 12.3.

  	
   

  	
  Discharge Only upon Payment in
  Full; Reinstatement in Certain Circumstances

  	
   

  	
  62

  
	
  Section 12.4.

  	
   

  	
  Subrogation

  	
   

  	
  62

  
	
  Section 12.5.

  	
   

  	
  Waivers

  	
   

  	
  63

  
	
  Section 12.6.

  	
   

  	
  Limit on Recovery

  	
   

  	
  63

  
	
  Section 12.7.

  	
   

  	
  Stay of Acceleration

  	
   

  	
  63

  
	
  Section 12.8.

  	
   

  	
  Benefit to Guarantors

  	
   

  	
  63

  

 

iii

 

	
  Section 12.9.

  	
   

  	
  Guarantor Covenants

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 13.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 13.1.

  	
   

  	
  Withholding Taxes

  	
   

  	
  63

  
	
  Section 13.2.

  	
   

  	
  No Waiver, Cumulative Remedies

  	
   

  	
  65

  
	
  Section 13.3.

  	
   

  	
  Non-Business Days

  	
   

  	
  65

  
	
  Section 13.4.

  	
   

  	
  Documentary Taxes

  	
   

  	
  65

  
	
  Section 13.5.

  	
   

  	
  Survival of Representations

  	
   

  	
  65

  
	
  Section 13.6.

  	
   

  	
  Survival of Indemnities

  	
   

  	
  65

  
	
  Section 13.7.

  	
   

  	
  Sharing of Set-Off

  	
   

  	
  65

  
	
  Section 13.8.

  	
   

  	
  Notices

  	
   

  	
  66

  
	
  Section 13.9.

  	
   

  	
  Counterparts

  	
   

  	
  66

  
	
  Section 13.10.

  	
   

  	
  Successors and Assigns

  	
   

  	
  66

  
	
  Section 13.11.

  	
   

  	
  Participants

  	
   

  	
  67

  
	
  Section 13.12.

  	
   

  	
  Assignments

  	
   

  	
  67

  
	
  Section 13.13.

  	
   

  	
  Amendments

  	
   

  	
  69

  
	
  Section 13.14.

  	
   

  	
  Headings

  	
   

  	
  70

  
	
  Section 13.15.

  	
   

  	
  Costs and Expenses; Indemnification

  	
   

  	
  70

  
	
  Section 13.16.

  	
   

  	
  Set-off

  	
   

  	
  71

  
	
  Section 13.17.

  	
   

  	
  Entire Agreement

  	
   

  	
  71

  
	
  Section 13.18.

  	
   

  	
  Governing Law

  	
   

  	
  71

  
	
  Section 13.19.

  	
   

  	
  Severability of Provisions

  	
   

  	
  71

  
	
  Section 13.20.

  	
   

  	
  Excess Interest

  	
   

  	
  71

  
	
  Section 13.21.

  	
   

  	
  Construction

  	
   

  	
  72

  
	
  Section 13.22.

  	
   

  	
  Lender’s Obligations Several

  	
   

  	
  72

  
	
  Section 13.23.

  	
   

  	
  Submission to Jurisdiction; Waiver
  of Jury Trial

  	
   

  	
  72

  
	
  Section 13.24.

  	
   

  	
  Amendment and Restatement

  	
   

  	
  73

  
	
  Section 13.25.

  	
   

  	
  USA Patriot Act

  	
   

  	
  73

  
	
  Section 13.26.

  	
   

  	
  Equalization of Outstanding
  Obligations

  	
   

  	
  73

  
	
  Section 13.27.

  	
   

  	
  Departing Lenders

  	
   

  	
  73

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature Page

  	
   

  	
   

  	
   

  	
  S-1

  

 

	
  EXHIBIT A

  	
   

  	
  —

  	
   

  	
  Notice of Payment Request

  
	
  EXHIBIT B

  	
   

  	
  —

  	
   

  	
  Notice of Borrowing

  
	
  EXHIBIT C

  	
   

  	
  —

  	
   

  	
  Notice of
  Continuation/Conversion

  
	
  EXHIBIT D

  	
   

  	
  —

  	
   

  	
  Note

  
	
  EXHIBIT E

  	
   

  	
  —

  	
   

  	
  Borrowing Base
  Certificate

  
	
  EXHIBIT F

  	
   

  	
  —

  	
   

  	
  Compliance Certificate

  
	
  EXHIBIT G

  	
   

  	
  —

  	
   

  	
  Additional Guarantor
  Supplement

  
	
  EXHIBIT H

  	
   

  	
  —

  	
   

  	
  Assignment and
  Acceptance

  
	
  EXHIBIT I

  	
   

  	
  —

  	
   

  	
  Opinion of Counsel

  
	
  EXHIBIT J

  	
   

  	
  —

  	
   

  	
  Commitment Amount
  Increase Request

  
	
  SCHEDULE 1.0

  	
   

  	
  —

  	
   

  	
  Commitments

  
	
  SCHEDULE 1.1

  	
   

  	
  —

  	
   

  	
  Initial Properties,
  Initial Investment Amount and Initial Senior Housing Value

  
	
  SCHEDULE 6.2

  	
   

  	
  —

  	
   

  	
  Material Subsidiaries

  
	
  SCHEDULE 6.26

  	
   

  	
  —

  	
   

  	
  Significant Leases

  

 

iv

 

SECOND AMENDED AND
RESTATED CREDIT AGREEMENT

 

This Second Amended and Restated Credit Agreement is
entered into as of July 17, 2008 by and among LTC Properties, Inc.,
a Maryland corporation (the “Borrower”),
certain direct and indirect Subsidiaries of the Borrower from time to time
party to this Agreement, as Guarantors, the several financial institutions from
time to time party to this Agreement, as Lenders and Bank of Montreal, Chicago
Branch, as Administrative Agent as provided herein.  All capitalized terms used herein without
definition shall have the same meanings herein as such terms are defined in Section 5.1
hereof.

 

PRELIMINARY STATEMENTS

 

WHEREAS, the Borrower, the Guarantors, the Lenders and
the Administrative Agent are currently party to that certain Amended and
Restated Credit Agreement dated as of November 7, 2005 (the “Prior Credit Agreement”). 
The Borrower has requested that the Prior Credit Agreement be amended in
certain respects as described below to, inter alia, (i) remove
certain Lenders (the “Departing Lenders”)
and provide for Commitments from new Lenders, (ii) extend the Termination
Date, (iii) add a provision for increases in Commitments, (iv) adjust
the net worth financial covenant, and (v) make certain additional
modifications to the Prior Credit Agreement, and for the sake of clarity and
convenience, the Borrower has requested that the Prior Credit Agreement be
restated as so amended.

 

WHEREAS, the Borrower has requested that the Lenders
continue to extend credit to it, and those Lenders, upon the occurrence of the
Closing Date and subject to the terms hereof, will continue to lend monies
and/or make advances, extensions of credit or other financial accommodations
to, on behalf of or for the benefit of the Borrower.

 

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

 

SECTION 1.                                                 THE CREDIT FACILITIES.

 

Section 1.1.           Commitments.  Subject to the terms and conditions hereof,
each Lender, by its acceptance hereof, severally agrees to make a loan or loans
(individually a “Loan” and collectively the “Loans”) in U.S. Dollars to the Borrower from time to time
on a revolving basis up to the amount of such Lender’s Commitment, subject to
any reductions thereof pursuant to the terms hereof, before the Termination
Date.  The sum of the aggregate principal
amount of Loans and L/C Obligations at any time outstanding shall not exceed
the lesser of (i) the Commitments in effect at such time or (ii) the
Borrowing Base as determined based on the most recent Borrowing Base
Certificate.  Each Borrowing of Loans
shall be made ratably by the Lenders in proportion to their respective
Percentages.  As provided in Section 1.5(a) hereof,
the Borrower may elect that each Borrowing of Loans be either Adjusted Base
Rate Loans or Eurodollar Loans.  Loans
may be repaid and the principal amount thereof reborrowed before the
Termination Date, subject to the terms and conditions hereof.

 

 

Section 1.2.           Letters
of Credit.  (a) General Terms. 
Subject to the terms and conditions hereof, as part of the Revolving
Credit, the L/C Issuer shall issue standby and commercial letters of credit
(each a “Letter of Credit”) for the account of
Borrower or for the account of the Borrower and one or more of its Subsidiaries
in an aggregate undrawn face amount up to the L/C Sublimit.  Each Letter of Credit shall be issued by the
L/C Issuer, but each Lender shall be obligated to reimburse the L/C Issuer
for such Lender’s Percentage of the amount of each drawing thereunder and,
accordingly, each Letter of Credit shall constitute usage of the Commitment of
each Lender pro rata in an amount equal to its Percentage of the
L/C Obligations then outstanding.

 

(b)                    Applications.  At any
time before the Termination Date, the L/C Issuer shall, at the request of the
Borrower, issue one or more Letters of Credit in U.S. Dollars, in a form
satisfactory to the L/C Issuer, with expiration dates no later than the earlier
of 12 months from the date of issuance (or which are cancelable not later than
12 months from the date of issuance and each renewal) or thirty (30) days prior
to the Termination Date, in an aggregate face amount as set forth above up to
the L/C Sublimit, upon the receipt of an application duly executed by the
Borrower and, if such Letter of Credit is for the account of one of its
Subsidiaries, such Subsidiary for the relevant Letter of Credit in the form
then customarily prescribed by the L/C Issuer for the Letter of Credit
requested (each an “Application”).  Notwithstanding anything contained in any
Application to the contrary:  (i) the
Borrower shall pay fees in connection with each Letter of Credit as set forth
in Section 2.1 hereof, (ii) except as otherwise provided in Section 1.8
hereof, before the occurrence of an Event of Default, the L/C Issuer will not
call for the funding by the Borrower of any amount under a Letter of Credit
before being presented with a drawing thereunder, and (iii) if the L/C
Issuer is not timely reimbursed for the amount of any drawing under a Letter of
Credit on the date such drawing is paid, the Borrower’s obligation to reimburse
the L/C Issuer for the amount of such drawing shall bear interest (which the
Borrower hereby promises to pay) from and after the date such drawing is paid at
a rate per annum equal to the sum of the Applicable Margin plus the Adjusted
Base Rate from time to time in effect (computed on the basis of a year of 365
or 366 days, as the case may be, and the actual number of days elapsed).  If the L/C Issuer issues any Letter of Credit
with an expiration date that is automatically extended unless the L/C Issuer
gives notice that the expiration date will not so extend beyond its then
scheduled expiration date, unless the Required Lenders instruct the L/C Issuer
otherwise, the L/C Issuer will give such notice of non-renewal before the time
necessary to prevent such automatic extension if before such required notice
date:  (i) the expiration date of
such Letter of Credit if so extended would be after the date that is thirty
(30) days prior to the Termination Date, (ii) the Commitments have been
terminated, or (iii) a Default or an Event of Default exists and the
Administrative Agent, at the request or with the consent of the Required
Lenders, has given the L/C Issuer instructions not to so permit the extension
of the expiration date of such Letter of Credit.  The L/C Issuer agrees to issue amendments to
the Letter(s) of Credit increasing the amount, or extending the expiration
date, thereof at the request of the Borrower subject to the conditions of Section 7
hereof and the other terms of this Section 1.2.

 

(c)                     The Reimbursement Obligations.  Subject to Section 1.2(b) hereof,
the obligation of the Borrower to reimburse the L/C Issuer for all drawings
under a Letter of Credit (a “Reimbursement Obligation”)
shall be governed by the Application related to such Letter of Credit, except
that reimbursement shall be made by no later than 2:00 p.m. (Chicago time)
on the date

 

2

 

when each drawing is to be paid if the Borrower has
been informed of such drawing by the L/C Issuer on or before 11:30 a.m.
(Chicago time) on the date when such drawing is to be paid or, if notice of
such drawing is given to the Borrower after 11:30 a.m. (Chicago time) on
the date when such drawing is to be paid, by the end of such day, in
immediately available funds at the Administrative Agent’s principal office in
Chicago, Illinois or such other office as the Administrative Agent may
designate in writing to the Borrower (who shall thereafter cause to be
distributed to the L/C Issuer such amount(s) in like funds).  If the Borrower does not make any such
reimbursement payment on the date due and the Participating Lenders fund their
participations therein in the manner set forth in Section 1.2(d) below,
then all payments thereafter received by the Administrative Agent in discharge
of any of the relevant Reimbursement Obligations shall be distributed in
accordance with Section 1.2(d) below.

 

(d)                    The Participating Interests. 
Each Lender (other than the Lender acting as L/C Issuer in issuing
the relevant Letter of Credit), by its acceptance hereof, severally agrees to
purchase from the L/C Issuer, and the L/C Issuer hereby agrees to sell to each
such Lender (a “Participating Lender”), an
undivided percentage participating interest (a “Participating
Interest”), to the extent of its Percentage, in each Letter of
Credit issued by, and each Reimbursement Obligation owed to, the L/C
Issuer.  Upon any failure by the Borrower
to pay any Reimbursement Obligation at the time required on the date the
related drawing is to be paid, as set forth in Section 1.2(c) above,
or if the L/C Issuer is required at any time to return to the Borrower or to a
trustee, receiver, liquidator, custodian or other Person any portion of any
payment of any Reimbursement Obligation, each Participating Lender shall, not
later than the Business Day it receives a certificate in the form of Exhibit A
hereto from the L/C Issuer (with a copy to the Administrative Agent) to such
effect, if such certificate is received before 1:00 p.m. (Chicago time),
or not later than 1:00 p.m. (Chicago time) the following Business Day, if
such certificate is received after such time, pay to the Administrative Agent
for the account of the L/C Issuer an amount equal to such Participating Lender’s
Percentage of such unpaid or recaptured Reimbursement Obligation together with
interest on such amount accrued from the date the related payment was made by
the L/C Issuer to the date of such payment by such Participating Lender at a
rate per annum equal to:  (i) from
the date the related payment was made by the L/C Issuer to the date
2 Business Days after payment by such Participating Lender is due
hereunder, the Federal Funds Rate for each such day and (ii) from the date
2 Business Days after the date such payment is due from such Participating
Lender to the date such payment is made by such Participating Lender, the
Adjusted Base Rate in effect for each such day. 
Each such Participating Lender shall thereafter be entitled to receive
its Percentage of each payment received in respect of the relevant
Reimbursement Obligation and of interest paid thereon, with the L/C Issuer
retaining its Percentage thereof as a Lender hereunder.  The several obligations of the Participating
Lenders to the L/C Issuer under this Section 1.2 shall be absolute,
irrevocable, and unconditional under any and all circumstances whatsoever and
shall not be subject to any set-off, counterclaim or defense to payment which
any Participating Lender may have or have had against the Borrower, the L/C
Issuer, the Administrative Agent, any Lender or any other Person
whatsoever.  Without limiting the
generality of the foregoing, such obligations shall not be affected by any
Default or Event of Default or by any reduction or termination of any
Commitment of any Lender, and each payment by a Participating Lender under this
Section 1.2 shall be made without any offset, abatement, withholding or
reduction whatsoever.

 

3

 

(e)                     Indemnification.  The
Participating Lenders shall, to the extent of their respective Percentages,
indemnify the L/C Issuer (to the extent not reimbursed by the Borrower) against
any cost, expense (including reasonable counsel fees and disbursements), claim,
demand, action, loss or liability (except such as result from the L/C Issuer’s
gross negligence or willful misconduct) that the L/C Issuer may suffer or incur
in connection with any Letter of Credit issued by it.  The obligations of the Participating Lenders
under this Section 1.2(e) and all other parts of this Section 1.2
shall survive termination of this Agreement and of all Applications, Letters of
Credit, and all drafts and other documents presented in connection with
drawings thereunder.

 

(f)                       Manner of Requesting a Letter of Credit.  The Borrower shall provide at least
five (5) Business Days’ advance written notice to the Administrative
Agent of each request for the issuance of a Letter of Credit, such notice in
each case to be accompanied by an Application for such Letter of Credit
properly completed and executed by the Borrower and, in the case of an
extension or an increase in the amount of a Letter of Credit, a written request
therefor, in a form acceptable to the Administrative Agent and the
L/C Issuer, in each case, together with the fees called for by this
Agreement.  The Administrative Agent
shall promptly notify the L/C Issuer of the Administrative Agent’s receipt of
each such notice and shall send to each Lender within five (5) Business
Days of the date of receipt a facsimile of such notice and the L/C Issuer shall
promptly notify the Administrative Agent and the Lenders of the issuance of the
Letter of Credit so requested.

 

Section 1.3.           Applicable
Interest Rates.  (a) Adjusted Base Rate Loans. 
Each Adjusted Base Rate Loan made or maintained by a Lender shall bear
interest during each Interest Period it is outstanding (computed on the basis
of a year of 365 or 366 days, as the case may be, and the actual days
elapsed) on the unpaid principal amount thereof from the date such Loan is
advanced or continued, or created by conversion from a Eurodollar Loan, until
maturity (whether by acceleration or otherwise) at a rate per annum equal to
the sum of the Applicable Margin plus the Adjusted Base Rate from time to time
in effect, payable on the last day of its Interest Period and at maturity
(whether by acceleration or otherwise).

 

“Adjusted
Base Rate” means, for any day, the fluctuating rate per annum
of interest equal to the greater of (a) the Prime Rate in effect on such
day, and (b) the Federal Funds Rate in effect on such day plus 0.5 of
1% (one-half of one percent), and

 

(b)                    Eurodollar Loans. 
Each Eurodollar Loan made or maintained by a Lender shall bear interest
during each Interest Period it is outstanding (computed on the basis of a year
of 360 days and actual days elapsed) on the unpaid principal amount thereof
from the date such Loan is advanced or continued, or created by conversion from
an Adjusted Base Rate Loan, until maturity (whether by acceleration or
otherwise) at a rate per annum equal to the sum of the Applicable Margin plus
the Adjusted LIBOR applicable for such Interest Period, payable on the last day
of each calendar month within an Interest Period or on the last day of the
Interest Period and at maturity (whether by acceleration or otherwise).

 

4

 

“Adjusted LIBOR” means, for any
Borrowing of Eurodollar Loans, a rate per annum determined in accordance with
the following formula:

 

	
  Adjusted LIBOR

  	
   

  	
  =

  	
   

  	
  LIBOR

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1 - Eurodollar Reserve
  Percentage

  	
   

  

 

“Eurodollar Reserve Percentage”
means, for any Borrowing of Eurodollar Loans, the daily average for the
applicable Interest Period of the maximum rate, expressed as a decimal, at
which reserves (including, without limitation, any supplemental, marginal, and
emergency reserves) are imposed during such Interest Period by the Board of
Governors of the Federal Reserve System (or any successor) on “eurocurrency liabilities”, as defined in such Board’s
Regulation D (or in respect of any other category of liabilities that
includes deposits by reference to which the interest rate on Eurodollar Loans
is determined or any category of extensions of credit or other assets that
include loans by non-United States offices of any Lender to United States
residents), subject to any amendments of such reserve requirement by such Board
or its successor, taking into account any transitional adjustments
thereto.  For purposes of this
definition, the Eurodollar Loans shall be deemed to be “eurocurrency
liabilities” as defined in Regulation D without benefit or
credit for any prorations, exemptions or offsets under Regulation D.

 

“LIBOR” means, for an Interest
Period for a Borrowing of Eurodollar Loans, (a) the LIBOR Index Rate for
such Interest Period, if such rate is available, and (b) if the LIBOR
Index Rate cannot be determined, the arithmetic average of the rates of
interest per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%)
at which deposits in U.S. Dollars in immediately available funds are offered to
the Administrative Agent at 11:00 a.m. (London, England time)
2 Business Days before the beginning of such Interest Period by 3 or more
major banks in the interbank eurodollar market selected by the Administrative
Agent for delivery on the first day of and for a period equal to such Interest
Period and in an amount equal or comparable to the principal amount of the
Eurodollar Loan scheduled to be made by the Administrative Agent as part of
such Borrowing.

 

“LIBOR Index Rate” means, for any
Interest Period, the rate per annum (rounded upwards, if necessary, to the next
higher one hundred-thousandth of a percentage point) for deposits in U.S.
Dollars for a period equal to such Interest Period, which appears on the
LIBOR0l Page as of 11:00 a.m. (London, England time) on the day
2 Business Days before the commencement of such Interest Period.

 

“LIBOR01 Page” means the display
designated as “Reuters Screen LIBOR01 Page” (or
such other page as may replace LIBOR0l Page on that service or such
other service as may be nominated by the British Bankers’ Association as the
information vendor for the purpose of displaying British Bankers’ Association
Interest Settlement Rates for U.S. Dollar deposits).

 

(c)       Rate
Determinations.  The
Administrative Agent shall determine each interest rate applicable to the Loans
and the Reimbursement Obligations hereunder, and its determination thereof
shall be conclusive and binding except in the case of manifest error.

 

5

 

Section 1.4.           Minimum
Borrowing Amounts; Maximum Eurodollar Loans.  Each Borrowing of Adjusted Base Rate Loans
advanced under the Revolving Credit shall be in an amount not less than
$100,000.  Each Borrowing of Eurodollar
Loans advanced, continued or converted under the Revolving Credit shall be in
an amount equal to $1,000,000 or such greater amount which is an integral
multiple of $500,000.  Without the
Administrative Agent’s consent, there shall not be more than five (5) Borrowings
of Eurodollar Loans outstanding under the Revolving Credit at any one time.

 

Section 1.5.           Manner
of Borrowing Loans and Designating Applicable Interest Rates.  (a) Notice to the
Administrative Agent.  The
Borrower shall give notice to the Administrative  Agent
by no later than 11:00 a.m. (Chicago time):  (i) at least 3 Business Days before
the date on which the Borrower requests the Lenders to advance a Borrowing of
Eurodollar Loans and (ii) on the date the Borrower requests the Lenders to
advance a Borrowing of Adjusted Base Rate Loans.  The Loans included in each Borrowing shall
bear interest initially at the type of rate specified in such notice of a new
Borrowing.  Thereafter, subject to the
terms and conditions hereof, the Borrower may from time to time elect to change
or continue the type of interest rate borne by each Borrowing or, subject to Section 1.4’s
minimum amount requirement for each outstanding Borrowing, a portion thereof,
as follows:  (i) if such Borrowing
is of Eurodollar Loans, on the last day of the Interest Period applicable
thereto, the Borrower may continue part or all of such Borrowing as Eurodollar
Loans or convert part or all of such Borrowing into Adjusted Base Rate Loans or
(ii) if such Borrowing is of Adjusted Base Rate Loans, on any Business
Day, the Borrower may convert all or part of such Borrowing into Eurodollar
Loans for an Interest Period or Interest Periods specified by the
Borrower.  The Borrower shall give all
such notices requesting the advance, continuation or conversion of a Borrowing
to the Administrative  Agent by
telephone or telecopy (which notice shall be irrevocable once given and, if by
telephone, shall be promptly confirmed in writing), substantially in the form
attached hereto as Exhibit B (Notice of Borrowing) or Exhibit C
(Notice of Continuation/Conversion), as applicable, or in such other form
acceptable to the Administrative  Agent.  Notice of the continuation of a Borrowing of
Eurodollar Loans for an additional Interest Period or of the conversion of part
or all of a Borrowing of Adjusted Base Rate Loans into Eurodollar Loans must be
given by no later than 11:00 a.m. (Chicago time) at least 3 Business
Days before the date of the requested continuation or conversion.  All such notices concerning the advance,
continuation or conversion of a Borrowing shall specify the date of the
requested advance, continuation or conversion of a Borrowing (which shall be a
Business Day), the amount of the requested Borrowing to be advanced, continued
or converted, the type of Loans to comprise such new, continued or converted
Borrowing and, if such Borrowing is to be comprised of Eurodollar Loans, the
Interest Period applicable thereto.  The
Borrower agrees that the Administrative Agent may rely on any such telephonic
or telecopy notice given by any person the Administrative Agent in good faith
believes is an Authorized Representative without the necessity of independent
investigation, and in the event any such notice by telephone conflicts with any
written confirmation such telephonic notice shall govern if the Administrative
Agent has acted in reliance thereon.

 

(b)       Notice to
the Lenders.  The
Administrative Agent shall (i) give prompt telephonic or facsimile notice
of each Borrowing notice received from Borrower pursuant to Section 1.5(a)
above, (ii) send a facsimile copy to each Lender within five (5) Business
Days of the date of receipt of each notice from the Borrower received pursuant
to Section 1.5(a) above and (iii) if 

 

6

 

such notice
requests the Lenders to make Eurodollar Loans, the Administrative Agent shall
give notice to the Borrower and each Lender by like means of the interest rate
applicable thereto promptly after the Administrative Agent has made such
determination.

 

(c)       Borrower’s
Failure to Notify; Automatic Continuations and Conversions.  Any outstanding Borrowing of Adjusted Base
Rate Loans shall automatically be continued for an additional Interest Period
on the last day of its then current Interest Period unless the Borrower has
notified the Administrative Agent within the period required by Section 1.5(a) that
the Borrower intends to convert such Borrowing, subject to Section 7.1
hereof, into a Borrowing of Eurodollar Loans or such Borrowing is prepaid in
accordance with Section 1.8(a).  If
the Borrower fails to give notice pursuant to Section 1.5(a) above of
the continuation or conversion of any outstanding principal amount of a
Borrowing of Eurodollar Loans before the last day of its then current Interest
Period within the period required by Section 1.5(a) or, whether or
not such notice has been given, one or more of the conditions set forth in Section 7.1
for the continuation or conversion of a Borrowing of Eurodollar Loans would not
be satisfied, and such Borrowing is not prepaid in accordance with Section 1.8(a),
such Borrowing shall automatically be converted into a Borrowing of Adjusted
Base Rate Loans.  In the event the
Borrower fails to give notice pursuant to Section 1.5(a) above of a
Borrowing equal to the amount of a Reimbursement Obligation and has not
notified the Administrative Agent by 12:00 noon (Chicago time) on the day
such Reimbursement Obligation becomes due that it intends to repay such
Reimbursement Obligation through funds not borrowed under this Agreement, the
Borrower shall be deemed to have requested a Borrowing of Adjusted Base Rate Loans
under the Credit on such day in the amount of the Reimbursement Obligation then
due, which Borrowing shall be applied to pay the Reimbursement Obligation then
due.

 

(d)       Disbursement
of Loans.  Not later than 1:00 p.m.
(Chicago time) on the date of any requested advance of a new Borrowing, subject
to Section 7 hereof, each Lender shall make available its Loan comprising
part of such Borrowing in funds immediately available at the principal office
of the Administrative Agent in Chicago, Illinois.  The Administrative Agent shall make the
proceeds of each new Borrowing available to the Borrower at the Administrative
Agent’s principal office in Chicago, Illinois, by depositing such proceeds to
the credit of the Borrower’s operating account maintained with the Administrative
Agent or as the Borrower and the Administrative Agent may otherwise agree.

 

(e)       Administrative
Agent Reliance on Lender Funding. 
Unless the Administrative Agent shall have been notified by a Lender
prior to (or, in the case of a Borrowing of Adjusted Base Rate Loans, by 1:00 p.m.
(Chicago time) on) the date on which such Lender is scheduled to make payment
to the Administrative Agent of the proceeds of a Loan (which notice shall be
effective upon receipt) that such Lender does not intend to make such payment,
the Administrative Agent may assume that such Lender has made such payment when
due and the Administrative Agent may in reliance upon such assumption (but
shall not be required to) make available to the Borrower the proceeds of the
Loan to be made by such Lender and, if any Lender has not in fact made such
payment to the Administrative Agent, such Lender shall, on demand, pay to the
Administrative Agent the amount made available to the Borrower attributable to
such Lender together with interest thereon in respect of each day during the
period commencing on the date such amount was made available to the Borrower
and ending on (but excluding) the date 

 

7

 

such Lender pays
such amount to the Administrative Agent at a rate per annum equal to:  (i) from the date the related advance
was made by the Administrative Agent to the date 2 Business Days after payment
by such Lender is due hereunder, the Federal Funds Rate for each such day and (ii) from
the date 2 Business Days after the date such payment is due from such Lender to
the date such payment is made by such Lender, the Adjusted Base Rate in effect
for each such day.  If such amount is not
received from such Lender by the Administrative Agent immediately upon demand,
the Borrower will, on demand, repay to the Administrative Agent the proceeds of
the Loan attributable to such Lender with interest thereon at a rate per annum
equal to the interest rate applicable to the relevant Loan, but without such
payment being considered a payment or prepayment of a Loan under Section 1.11
hereof so that the Borrower will have no liability under such Section with
respect to such payment.

 

Section 1.6.           Interest
Periods.  As provided
in Section 1.5(a) hereof, at the time of each request to advance,
continue or create by conversion a Borrowing of Eurodollar Loans, the Borrower
shall select an Interest Period applicable to such Loans from among the
available options.  The term “Interest Period” means the period commencing on the date a
Borrowing of Loans is advanced, continued or created by conversion and
ending:  (a) in the case of Adjusted
Base Rate Loans, on the last day of the calendar month in which such Borrowing
is advanced, continued or created by conversion (or on the last day of the
following calendar month if such Loan is advanced, continued or created by
conversion on the last day of a calendar month) and (b) in the case of a
Eurodollar Loan 1, 2, 3 or 6 months thereafter; provided,
however, that:

 

(i)            any Interest Period for a Borrowing
of Loans consisting of Adjusted Base Rate Loans that otherwise would end after
the Termination Date shall end on the Termination Date;

 

(ii)           no Interest Period with respect to
any portion of the Loans shall extend beyond the Termination Date;

 

(iii)          whenever the last day of any Interest
Period would otherwise be a day that is not a Business Day, the last day of
such Interest Period shall be extended to the next succeeding Business Day,
provided that, if such extension would cause the last day of an Interest Period
for a Borrowing of Eurodollar Loans to occur in the following calendar month,
the last day of such Interest Period shall be the immediately preceding
Business Day; and

 

(iv)          for purposes of determining an
Interest Period for a Borrowing of Eurodollar Loans, a month means a period
starting on one day in a calendar month and ending on the numerically
corresponding day in the next calendar month; provided,
however, that if there is no numerically corresponding day in the
month in which such an Interest Period is to end or if such an Interest Period
begins on the last Business Day of a calendar month, then such Interest Period
shall end on the last Business Day of the calendar month in which such Interest
Period is to end.

 

Section 1.7.           Maturity
of Loans.   Each Loan both for principal and
interest not sooner paid, shall mature and become due and payable by the
Borrower on the Termination Date.

 

8

 

Section 1.8.           Prepayments.  (a) Optional.  The
Borrower may prepay  in whole or in
part (but, if in part, then:  (i) if
such Borrowing is of Adjusted Base Rate Loans, in an amount not less than
$100,000, (ii) if such Borrowing is of Eurodollar Loans, in an amount not
less than $500,000, and (iii) in each case, in an amount such that the
minimum amount required for a Borrowing pursuant to Section 1.4 hereof
remains outstanding) any Borrowing of Eurodollar Loans at any time upon
three (3) Business Days prior notice by the Borrower to the Administrative
Agent or, in the case of a Borrowing of Adjusted Base Rate Loans, notice
delivered by the Borrower to the Administrative Agent no later than 10:00 a.m.
(Chicago time)  on the date of prepayment (or, in
any case, such shorter period of time then agreed to by the Administrative
Agent), such prepayment to be made by the payment of the principal amount to be
prepaid and, in the case of any Eurodollar Loans, accrued interest thereon to
the date fixed for prepayment plus any amounts due the Lenders under Section 1.11
hereof.

 

(b)       Mandatory.  (i) The Borrower shall, on each date the
Commitments are reduced pursuant to Section 1.12 hereof, prepay the Loans
and, if necessary, prefund the L/C Obligations by the amount, if any, necessary
to reduce the sum of the aggregate principal amount of Loans and L/C
Obligations then outstanding to the amount to which the Commitments have been
so reduced.

 

(ii)       If at any time the sum
of the unpaid principal balance of the Loans and the L/C Obligations then
outstanding shall be in excess of the Borrowing Base as determined on the basis
of the most recent Borrowing Base Certificate,  the
Borrower shall immediately and without notice or demand pay over the amount of
the excess to the Administrative Agent for the account of the Lenders as and
for a mandatory prepayment on such Obligations, with each such prepayment first
to be applied to the Loans until payment in full thereof with any remaining
balance to be held by the Administrative Agent in the Collateral Account as security
for the Obligations owing with respect to the Letters of Credit.

 

(iii)      Unless the Borrower
otherwise directs, prepayments of Loans under this Section 1.8(b) shall
be applied first to Borrowings of Adjusted Base Rate Loans until payment in
full thereof with any balance applied to Borrowings of Eurodollar Loans in the
order in which their Interest Periods expire. 
Each prepayment of Loans under this Section 1.8(b) shall be
made by the payment of the principal amount to be prepaid and, in the case of
any Eurodollar Loans, accrued interest thereon to the date of prepayment
together with any amounts due the Lenders under Section 1.11 hereof.  Each prefunding of L/C Obligations shall be
made in accordance with Section 9.4 hereof.

 

(c)       Any amount of Loans paid
or prepaid before the Termination Date may, subject to the terms and conditions
of this Agreement, be borrowed, repaid and borrowed again.

 

Section 1.9.           Default
Rate.  Notwithstanding
anything to the contrary contained herein, while any Event of Default exists or
after acceleration, the Borrower shall pay interest (after as well as before
entry of judgment thereon to the extent permitted by law) on the principal
amount of all Loans and Reimbursement Obligations, and letter of credit fees at
a rate per annum equal to:

 

9

 

(a)     for any Adjusted Base Rate Loan, the sum of
2.0% plus the Applicable Margin plus the Adjusted Base Rate from time to time
in effect;

 

(b)    for any Eurodollar Loan, the sum of 2.0%
plus the rate of interest in effect thereon at the time of such default until
the end of the Interest Period applicable thereto and, thereafter, at a rate
per annum equal to the sum of 2.0% plus the Applicable Margin for Adjusted Base
Rate Loans plus the Adjusted Base Rate from time to time in effect;

 

(c)     for any Reimbursement Obligation, the sum
of 2.0% plus the amounts due under Section 1.2 with respect to such
Reimbursement Obligation; and

 

(d)    for any Letter of Credit, the sum of 2.0%
plus the letter of credit fee due under Section 2.1 with respect to such
Letter of Credit;

 

provided,
however, that in the absence of acceleration, any adjustments
pursuant to this Section shall be made at the election of the
Administrative Agent, acting at the request or with the consent of the Required
Lenders, with written notice to the Borrower. 
While any Event of Default exists or after acceleration, interest shall
be paid on demand of the Administrative Agent at the request or with the consent
of the Required Lenders.

 

Section 1.10.        The
Notes.  (a) The
Loans made to the Borrower by a Lender shall be evidenced by a single
promissory note of the Borrower issued to such Lender in the form of Exhibit D
hereto.  Each such promissory note is
hereinafter referred to as a “Note” and collectively
such promissory notes are referred to as the “Notes.”

 

(b)       Each Lender shall record
on its books and records or on a schedule to its appropriate Note the amount of
each Loan advanced, continued or converted by it, all payments of principal and
interest and the principal balance from time to time outstanding thereon, the
type of such Loan, and, for any Eurodollar Loan, the Interest Period and the
interest rate applicable thereto.  The
record thereof, whether shown on such books and records of a Lender or on a
schedule to the relevant Note, shall be prima  facie evidence as to all such matters; provided,
however, that the failure of any Lender to record any of the
foregoing or any error in any such record shall not limit or otherwise affect
the obligation of the Borrower to repay all Loans made to it hereunder together
with accrued interest thereon.  At the
request of any Lender and upon such Lender tendering to the Borrower the
appropriate Note to be replaced, the Borrower shall furnish a new Note to such
Lender to replace any outstanding Note.

 

Section 1.11.        Funding
Indemnity.  If any
Lender shall incur any loss, cost or expense (including, without limitation,
any loss of profit, and any loss, cost or expense incurred by reason of the
liquidation or re-employment of deposits or other funds acquired by such Lender
to fund or maintain any Eurodollar Loan or the relending or reinvesting of such
deposits or amounts paid or prepaid to such Lender) as a result of:

 

(a)     any payment, prepayment or conversion of a
Eurodollar Loan on a date other than the last day of its Interest Period,

 

10

 

(b)    any failure (because of a failure to meet
the conditions of Section 7 or otherwise) by the Borrower to borrow or
continue a Eurodollar Loan, or to convert an Adjusted Base Rate Loan into a
Eurodollar Loan, on the date specified in a notice given pursuant to Section 1.5(a) hereof,

 

(c)     any failure by the Borrower to make any
payment of principal on any Eurodollar Loan when due (whether by acceleration
or otherwise), or

 

(d)    any acceleration of the maturity of a
Eurodollar Loan as a result of the occurrence of any Event of Default
hereunder,

 

then,
upon the demand of such Lender, the Borrower shall pay to such Lender such amount
as will reimburse such Lender for such loss, cost or expense.  If any Lender makes such a claim for
compensation, it shall provide to the Borrower, with a copy to the
Administrative Agent, a certificate setting forth the amount of such loss, cost
or expense in reasonable detail and the amounts shown on such certificate shall
be deemed prime facie correct.

 

Section 1.12.        Commitment
Terminations.  (a) Optional Credit Terminations.  The
Borrower shall have the right at any time and from time to time, upon 5 Business
Days prior written notice to the Administrative Agent (or such shorter period
of time agreed to by the Administrative Agent), to terminate the Commitments
without premium or penalty and in whole or in part, any partial termination to
be (i) in an amount not less than $1,000,000 and (ii) allocated
ratably among the Lenders in proportion to their respective Percentages,
provided that the Commitments may not be reduced to an amount less than the sum
of the aggregate principal amount of Loans and L/C Obligations then
outstanding.  Any termination of the
Commitments below the L/C Sublimit then in effect shall reduce the
L/C Sublimit by a like amount.  The
Administrative Agent shall give prompt notice to each Lender of any such
termination of the Commitments.

 

(b)       Any termination of the
Commitments pursuant to this Section 1.12 may not be reinstated.

 

Section 1.13.        Substitution
of Lenders.  In the
event (a) the Borrower receives a claim from any Lender for compensation
under Section 10.3 or 13.1 hereof, (b) the Borrower receives notice
from any Lender of any illegality pursuant to Section 10.1 hereof, (c) any
Lender is in default in any material respect with respect to its obligations
under the Loan Documents, or (d) a Lender fails to consent to an amendment
or waiver requiring the consent of each affected Lender or all Lenders under Section 13.13
hereof at a time when the Required Lenders have approved such amendment or
waiver (any such Lender referred to in clause (a), (b), (c), or (d) above
being hereinafter referred to as an “Affected Lender”),
the Borrower may, in addition to any other rights the Borrower may have
hereunder or under applicable law, require, at the Borrower’s expense, any such
Affected Lender to assign, at par plus accrued interest and fees, without
recourse, all of its interest, rights, and obligations hereunder (including all
of its Commitments and the Loans and participation interests in Letters of
Credit and other amounts at any time owing to it hereunder and the other Loan
Documents) to a commercial bank or other financial institution specified by the
Borrower, provided that (i) such assignment
shall not conflict with or 

 

11

 

violate any law, rule or
regulation or order of any court or other governmental authority, (ii) the
Borrower shall have received the written consent of the Administrative Agent,
which consent shall not be unreasonably withheld, to such assignment, (iii) the
Borrower shall have paid to the Affected Lender all monies (together with
amounts due such Affected Lender under Section 1.11 hereof as if the Loans
owing to it were prepaid rather than assigned) other than such principal owing
to it hereunder, (iv) the assignment is entered into in accordance with
the other requirements of Section 13.12 hereof (provided any assignment
fees and reimbursable expenses due thereunder shall be paid by the Borrower), (v) in
the case of subsection (a) above, the Borrower’s obligations to the
assignee Lender would be materially less than the obligations to the affected
Lender, and (vi) in the case of subsection (b) above, the
assignee Lender would not be affected by the related illegality.

 

Section 1.14.        Increase
in Revolving Credit Commitments.  The Borrower may, on any Business Day prior
to the Termination Date, increase the aggregate amount of the Commitments by
delivering a Commitment Amount Increase Request substantially in the form
attached hereto as Exhibit J or in such other form acceptable to the
Administrative Agent at least five (5) Business Days prior to the desired
effective date of such increase (the “Commitment Amount
Increase”) identifying one or more additional Lenders (or additional
Commitments for existing Lender(s)) and the amount of its Commitment (or
additional amount of its Commitment(s)); provided, however,
that (i) any increase of the aggregate amount of the Revolving Credit
Commitments to an amount in excess of $40,000,000 will require the approval of
all Lenders, (ii) any increase of the aggregate amount of the Commitments
shall be in an amount not less than $5,000,000, (iii) no Default or Event
of Default shall have occurred and be continuing at the time of the request or the
effective date of, or result from, the Commitment Amount Increase and (iv) all
representations and warranties contained in Section 6 hereof shall be true
and correct at the time of such request and on the effective date of such
Commitment Account Increase, except to the extent the same expressly relates to
an earlier date.  The effective date of
the Commitment Amount Increase shall be agreed upon by the Borrower and the
Administrative Agent.  Upon the
effectiveness thereof, the new Lender(s) (or, if applicable, existing
Lender(s)) shall advance Loans in an amount sufficient such that after giving
effect to its advance each Lender shall have outstanding its Percentage of
Loans.  It shall be a condition to such
effectiveness that (i) if any Eurodollar Loans are outstanding on the date
of such effectiveness, such Eurodollar Loans shall be deemed to be prepaid on
such date and the Borrower shall pay any amounts owing to the Lenders pursuant
to Section 1.11 hereof and (ii) the Borrower shall not have
terminated any portion of the Commitments pursuant to Section 1.12(a) hereof.  The Borrower agrees to pay any reasonable
expenses of the Administrative Agent relating to any Commitment Amount
Increase.  Notwithstanding anything
herein to the contrary, no Lender shall have any obligation to increase its
Commitment and no Lender’s Commitment shall be increased without its consent
thereto, and each Lender may at its option, unconditionally and without cause,
decline to increase its Commitment.

 

SECTION 2.                                     FEES.

 

Section 2.1.           Fees.  (a) Commitment Fee.  The Borrower shall pay to the Administrative
Agent for the ratable account of the Lenders in accordance with their
Percentages a commitment fee at the rate per annum equal to the Applicable
Margin for commitment fees as shown in the 

 

12

 

definition of
Applicable Margin in Section 5.1 hereof, (computed on the basis of a year
of 360 days and the actual number of days elapsed) on the daily Unused
Commitments.  Such commitment fee shall
be payable quarterly in arrears on the last day of each Fiscal Quarter in each
year (commencing on September 30, 2008) and on the Termination Date,
unless the Commitments are terminated in whole on an earlier date, in which
event the commitment fee for the period to the date of such termination in
whole shall be paid on the date of such termination.

 

(b)       Letter of
Credit Fees.  On the date of
issuance or extension, or increase in the amount, of any Letter of Credit
pursuant to Section 1.2 hereof, the Borrower shall pay to the L/C Issuer
for its own account a fronting fee equal to .125% of the face amount of (or of
the increase in the face amount of) such Letter of Credit.  Quarterly in arrears, on the last day of each
Fiscal Quarter, commencing on September 30, 2008, the Borrower shall
pay to the Administrative Agent, for the ratable benefit of the Lenders in
accordance with their Percentages, a letter of credit fee at a rate per annum
equal to the Applicable Margin for Letter of Credit Fee as shown in the
definition of Applicable Margin in Section 5.1 hereof (computed on the
basis of a year of 360 days and the actual number of days elapsed) in
effect during each day of such quarter applied to the daily face amount of
Letters of Credit outstanding during such quarter.  In addition, the Borrower shall pay to the
L/C Issuer for its own account the L/C Issuer’s standard issuance, drawing,
negotiation, amendment, and other administrative fees for each Letter of Credit
as established by the L/C Issuer from time to time.

 

(c)       Administrative
Agent Fees.  The Borrower
shall pay to the Administrative Agent, for its own use and benefit, the fees
agreed to between the Administrative Agent and the Borrower in an engagement
letter dated April 30, 2008, or as otherwise agreed to in writing
between them (without duplication and pro rata for the administrative fee
previously paid to the Administrative Agent in connection with the Prior Credit
Agreement).

 

SECTION 3.                                     PLACE AND APPLICATION OF PAYMENTS.

 

Section 3.1.           Place
and Application of Payments. 
All payments of principal and interest on the Loans and the Reimbursement
Obligations, and of all other Obligations payable by the Borrower under this
Agreement and the other Loan Documents, shall be made by the Borrower to the
Administrative Agent by no later than 12:00 Noon (Chicago time) on the due
date thereof at the office of the Administrative Agent in Chicago, Illinois (or
such other location as the Administrative Agent may designate to the Borrower)
for the benefit of the Lender or Lenders entitled thereto.  Any payments received after such time shall
be deemed to have been received by the Administrative Agent on the next
Business Day, provided however, that if the Borrower has provided to the
Administrative Agent written authorization to deduct such payments from its
operating bank account maintained at Harris N.A., Chicago, Illinois, by 12:00
Noon (Chicago Time), such amounts shall be deemed to have been received by the
Administrative Agent upon receipt of such notification.  All such payments shall be made in U.S.
Dollars, in immediately available funds at the place of payment, in each case
without set-off or counterclaim.  The
Administrative Agent will promptly thereafter cause to be distributed like
funds relating to the payment of principal or interest on Loans and on Reimbursement
Obligations in which the Lenders have purchased Participating Interests ratably
to the Lenders and like funds relating to the payment of any other amount
payable to any Lender to such Lender, in each case to be 

 

13

 

applied in accordance
with the terms of this Agreement.  If the
Administrative Agent causes amounts to be distributed to the Lenders in
reliance upon the assumption that the Borrower will make a scheduled payment
and such scheduled payment is not so made, each Lender shall, on demand, repay
to the Administrative Agent the amount distributed to such Lender together with
interest thereon in respect of each day during the period commencing on the
date such amount was distributed to such Lender and ending on (but excluding) the
date such Lender repays such amount to the Administrative Agent, at a rate per
annum equal to:  (i) from the date
the distribution was made to the date 2 Business Days after payment by such
Lender is due hereunder, the Federal Funds Rate for each such day and (ii) from
the date 2 Business Days after the date such payment is due from such Lender to
the date such payment is made by such Lender, the Adjusted Base Rate in effect
for each such day.

 

Anything contained herein to the contrary
notwithstanding (including, without limitation, Section 1.8(b) hereof),
all payments and collections received in respect of the Obligations, by the
Administrative Agent or any of the Lenders after acceleration or the final
maturity of the Obligations or termination of the Commitments as a result of an
Event of Default shall be remitted to the Administrative Agent and distributed
as follows:

 

(a)           first, to the payment of any
outstanding costs and expenses incurred by the Administrative Agent, in
protecting, preserving or enforcing rights under the Loan Documents, and in any
event including all costs and expenses of a character which the Borrower has
agreed to pay the Administrative Agent under Section 13.15 hereof (such
funds to be retained by the Administrative Agent for its own account unless it
has previously been reimbursed for such costs and expenses by the Lenders, in
which event such amounts shall be remitted to the Lenders to reimburse them for
payments theretofore made to the Administrative Agent);

 

(b)           second, to the payment of any
outstanding costs and expenses incurred by the Lenders, in protecting,
preserving or enforcing rights under the Loan Documents, and in any event
including all costs and expenses of a character which the Borrower has agreed
to pay the Lenders under Section 13.15 hereof;

 

(c)           third, to the payment of any
outstanding interest and fees due under the Loan Documents to be allocated pro
rata in accordance with the aggregate unpaid amounts owing to each holder
thereof;

 

(d)           fourth, to the payment of principal
on the Notes, unpaid Reimbursement Obligations, together with amounts to be
held by the Administrative Agent as collateral security for any outstanding
L/C Obligations pursuant to Section 9.4 hereof (until the
Administrative Agent is holding an amount of cash equal to the then outstanding
amount of all such L/C Obligations), the aggregate amount paid to, or held
as collateral security for, the Lenders and their Affiliates to be allocated
pro rata in accordance with the aggregate unpaid amounts owing to each holder
thereof;

 

(e)           fifth, to the payment of all other
unpaid Obligations and all other indebtedness, obligations, and liabilities of
the Borrower and its Subsidiaries secured by 

 

14

 

the Collateral Documents to be allocated pro rata in
accordance with the aggregate unpaid amounts owing to each holder thereof; and

 

(f)            finally, to the Borrower or whoever
else may be lawfully entitled thereto.

 

SECTION 4.                                     GUARANTIES.

 

Section 4.1.           Guaranties.  The payment and performance of the
Obligations shall at all times be guaranteed by each direct and indirect
Material Subsidiary of the Borrower (individually a “Guarantor” and
collectively the “Guarantors”) pursuant to Section 12
hereof or pursuant to one or more guaranty agreements in form and substance
acceptable to the Administrative Agent, as the same may be amended, modified or
supplemented from time to time (individually a “Guaranty”
and collectively the “Guaranties”).

 

Section 4.2.           Further
Assurances.  In the
event the Borrower or any Guarantor forms or acquires any other Material
Subsidiary after the date hereof, except as otherwise provided in Section 4.1
above, the Borrower shall promptly upon such formation or acquisition cause
such newly formed or acquired Material Subsidiary to execute an Additional
Guarantor Supplement in the form of Exhibit G attached hereto (the “Additional Guarantor Supplement”) as the Administrative
Agent may then require, and the Borrower shall also deliver to the
Administrative Agent, or cause such Material Subsidiary to deliver to the
Administrative Agent, at the Borrower’s cost and expense, such other
instruments, documents, certificates, and opinions reasonably required by the
Administrative Agent or any Lender in connection therewith.  The Administrative Agent shall promptly
deliver to each Lender a copy of any Guaranty delivered under this Section and
any other materials requested by such Lender in the possession of the
Administrative Agent.

 

SECTION 5.                                     DEFINITIONS; INTERPRETATION.

 

Section 5.1.           Definitions.  The following terms
when used herein shall have the following meanings:

 

“Acquired Business” means the
entity, Property or assets acquired by the Borrower or a Subsidiary in an
Acquisition, after the date hereof.

 

“Acquisition” means any
transaction or series of related transactions for the purpose of or resulting,
directly or indirectly, in (a) the acquisition of all or substantially all
of the assets of a Person, or of any business or division of a Person, (b) the
acquisition of in excess of 50% of the capital stock, partnership interests,
membership interests or equity of any Person (other than a Person that is a
Subsidiary), or otherwise causing any Person to become a Subsidiary, or (c) a
merger or consolidation or any other combination with another Person (other
than a Person that is a Subsidiary) provided that the Borrower or the
Subsidiary is the surviving entity.

 

“Additional Guarantor Supplement”
is defined in Section 4.2 hereof.

 

15

 

“Adjusted Base Rate” is defined
in Section 1.3(a) hereof.

 

“Adjusted Base Rate Loan” means a
Loan bearing interest at a rate specified in Section 1.3(a) hereof.

 

“Adjusted LIBOR” is defined in Section 1.3(b) hereof.

 

“Administrative Agent” means Bank
of Montreal, Chicago Branch and any successor pursuant to Section 11.7
hereof.

 

“Administrative Questionnaire” means
an Administrative Questionnaire in a form supplied by the Administrative Agent.

 

 “Affiliate”
means any Person directly or indirectly controlling or controlled by, or under
direct or indirect common control with, another Person.  A Person shall be deemed to control another
Person for the purposes of this definition if such Person possesses, directly
or indirectly, the power to direct, or cause the direction of, the management
and policies of the other Person, whether through the ownership of voting
securities, common directors, trustees or officers, by contract or otherwise; provided that, in any event for purposes of this definition,
any Person that owns, directly or indirectly, 20% or more of the securities
having the ordinary voting power for the election of directors or governing
body of a corporation or 20% or more of the partnership or other ownership
interest of any other Person (other than as a limited partner of such other
Person) will be deemed to control such corporation or other Person.

 

“Agreement” means this Amended
and Restated Credit Agreement, as the same may be amended, modified, restated
or supplemented from time to time pursuant to the terms hereof.

 

“ALF’s” is defined in the
definition of Capitalization Rate.

 

“Applicable Margin” means, with
respect to Loans, Reimbursement Obligations, and the commitment fees and letter
of credit fee payable under Section 2.1 hereof, until the first Pricing
Date, the rates per annum shown opposite Level I below, and thereafter
from one Pricing Date to the next the Applicable Margin means the rates per
annum determined in accordance with the following schedule:

 

16

 

	
  LEVEL

  	
   

  	
  MAXIMUM TOTAL

  INDEBTEDNESS/TOTAL

  ASSET VALUE RATIO FOR

  SUCH PRICING DATE

  	
   

  	
  APPLICABLE MARGIN FOR

  ADJUSTED BASE RATE 

  LOANS UNDER REVOLVING

  CREDIT AND

  REIMBURSEMENT

  OBLIGATIONS SHALL BE:

  	
   

  	
  APPLICABLE MARGIN FOR

  EURODOLLAR LOANS

  UNDER REVOLVING

  CREDIT AND LETTER OF

  CREDIT FEE SHALL BE:

  	
   

  	
  APPLICABLE

  MARGIN FOR

  COMMITMENT FEE

  SHALL BE:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IV

  	
   

  	
  Greater than .45 to 1.0

  	
   

  	
  1.50

  	
  %

  	
  2.50

  	
  %

  	
  0.40

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III

  	
   

  	
  Less than or equal to .45 to 1.0 but greater than
  .35 to 1.0

  	
   

  	
  1.00

  	
  %

  	
  2.00

  	
  %

  	
  .0.35

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II

  	
   

  	
  Less than or equal to .35 to 1.0 but greater than
  .25 to 1.0

  	
   

  	
  0.75

  	
  %

  	
  1.75

  	
  %

  	
  0.35

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I

  	
   

  	
  Less than or
  equal to .25 to 1.0

  	
   

  	
  0.50

  	
  %

  	
  1.50

  	
  %

  	
  0.30

  	
  %

  

 

For purposes
hereof, the term “Pricing Date” means, for any
Fiscal Quarter of the Borrower ending on or after September 30, 2008, the
date on which the Administrative Agent is in receipt of the Borrower’s most
recent financial statements and current Compliance Certificate (and, in the
case of the year-end financial statements, audit report) for the Fiscal Quarter
then ended, pursuant to Section 8.5 hereof.  The Applicable Margin shall be established
based on the Maximum Total Indebtedness/Total Asset Value Ratio for the most
recently completed Fiscal Quarter and the Applicable Margin established on a
Pricing Date shall remain in effect until the next Pricing Date.  If the Borrower has not delivered its
financial statements, including a Compliance Certificate, by the date such
financial statements (and, in the case of the year-end financial statements,
audit report) are required to be delivered under Section 8.5 hereof, until
such financial statements and audit report are delivered, the Applicable Margin
shall be the highest Applicable Margin (i.e.,
Level IV shall apply).  If the Borrower
subsequently delivers such financial statements before the next Pricing Date,
the Applicable Margin established by such late delivered financial statements
shall take effect from the date of delivery until the next Pricing Date.  In all other circumstances, the Applicable
Margin established by such financial statements shall be in effect from the
Pricing Date that occurs immediately after the end of the Fiscal Quarter
covered by such financial statements until the next Pricing Date.  Each determination of the Applicable Margin
made by the Administrative Agent in accordance with the foregoing shall be
conclusive and binding on the Borrower and the Lenders if reasonably
determined.

 

“Application” is defined in Section 1.2(b) hereof.

 

“Approved Fund” means any Fund
that has been approved by Borrower (such approval not to be unreasonably
withheld or delayed and such approval not to be required if an Event of Default
has occurred and is continuing) and is administered or managed by (a) a
Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate
of an entity that administers or manages a Lender.

 

“Assets Under Development” means
any real property under construction.

 

17

 

“Assignment and Acceptance” means
an assignment and acceptance entered into by a Lender and an Eligible Assignee
(with the consent of any party whose consent is required by Section 13.12
hereof), and accepted by the Administrative Agent, in substantially the form of
Exhibit H or any other form approved by the Administrative Agent.

 

“Authorized Representative” means
those persons shown on the list of officers provided by the Borrower pursuant
to Section 7.2 hereof or on any update of any such list provided by the
Borrower to the Administrative Agent, or any further or different officers of
the Borrower so named by any Authorized Representative of the Borrower in a
written notice to the Administrative Agent.

 

“Borrower” is defined in the
introductory paragraph of this Agreement.

 

“Borrowing” means the total of
Loans of a single type advanced, continued for an additional Interest Period,
or converted from a different type into such type by the Lenders on a single
date and, in the case of Eurodollar Loans, for a single Interest Period.  Borrowings of Loans are made and maintained
ratably from each of the Lenders according to their Percentages.  A Borrowing is “advanced”
on the day Lenders advance funds comprising such Borrowing to the Borrower, is “continued” on the date a new Interest Period for the same
type of Loans commences for such Borrowing, and is “converted”
when such Borrowing is changed from one type of Loans to the other, all as
determined pursuant to Section 1.5 hereof.

 

“Borrowing Base” means, at any
date of its determination, an amount equal to 50% of the Borrowing Base Value
on such date minus the outstanding principal amount of all Unsecured Debt of
the Borrower on such date that is pari passu in rank to the indebtedness under
the Credit Agreement other than the Obligations.

 

“Borrowing Base Certificate”
means the certificate in the form of Exhibit E hereto, or in such other
form acceptable to the Administrative Agent, to be delivered to the
Administrative Agent and the Lenders pursuant to Sections 7.2 and 8.5
hereof.

 

“Borrowing Base Determination Date”
means each date on which the Borrowing Base is certified to the Administrative
Agent, as follows:

 

                   (a)        Quarterly.  On the 50th day following each calendar
quarter (except when such calendar quarter ends on December 31, in which event
it shall be on the 60th day.

 

                   (b)        Property Adjustments.  Following each addition or deletion of an
Eligible Property (an “Adjustment Event”),
the Borrowing Base shall be adjusted accordingly.

 

                   (c)        Notice of Borrowing Base
Change.  Promptly following
any date the Borrowing Base is re-determined in accordance with the preceding
paragraphs, the Administrative Agent shall give notice to the Lenders and the
Borrower of the new Borrowing Base.

 

18

 

“Borrowing Base Requirements”
means collectively that (a) no more than 10% of the Borrowing Base Value
may be comprised of Eligible Properties which are leased by Borrower pursuant
to a Qualified Ground Lease; (b) no more than 20% of the Borrowing Base
Value may be comprised of Eligible Properties which are neither SNF’s or ALF’s;
(c) no more than 15% of the Borrowing Base Value may be comprised of
Eligible Properties which are not 100% owned by Borrower and/or any Guarantor
(exclusive of Eligible Properties attributable to (a) above) and (d) no
more than 10% of the Borrowing Base Value may be comprised of any one Eligible
Property.

 

“Borrowing Base Value” means, at
any date of its determination, an amount equal to the sum of the following on
such date (a) Eligible Properties owned more than four quarters valued at
the Calculated Value and (b) Eligible Properties owned for less than four
quarters valued at the Investment Amount.

 

“Business Day” means any day
(other than a Saturday or Sunday) on which banks are not authorized or required
to close in Chicago, Illinois and, if the applicable Business Day relates to
the advance or continuation of, or conversion into, or payment of a Eurodollar
Loan, on which banks are dealing in U.S. Dollar deposits in the interbank eurodollar
market in London, England and Nassau, Bahamas.

 

“Calculated Value” means the
quotient of the Eligible Property NOI for each applicable Eligible Property
divided by its applicable Capitalization Rate with the resulting quotient
multiplied by owner’s percentage ownership of such Eligible Property.

 

“Capital Lease” means any lease
of Property which in accordance with GAAP is required to be capitalized on the
balance sheet of the lessee.

 

“Capitalized Lease Obligation”
means, for any Person, the amount of the liability shown on the balance sheet
of such Person in respect of a Capital Lease determined in accordance with
GAAP.

 

“Capitalization Rate” means 8.5%
for assisted living facilities (“ALF’s”) and
12% for skilled nursing facilities (“SNF’s”).

 

“Change of Control” means any of (a) the
acquisition by any “person” or “group” (as such terms are used in sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended) at any time of
beneficial ownership of 50% or more of the outstanding capital stock or other
equity interests of the Borrower on a fully-diluted basis, (b) any “Change
of Control” (or words of like import), as defined in any agreement or indenture
relating to any issue of Indebtedness for Borrowed Money in excess of
$10,000,000 shall occur or (c) during any twelve (12) month period on
or after the date hereof, individuals who at the beginning of such period
constituted the Board of Directors of the Borrower (together with any new
directors whose election by the Board of Directors or whose nomination for
election by the shareholders of the Borrower was approved by a vote of at least
a majority of the members of the Board of Directors then in office who either
were members of the Board of Directors at the beginning of such period or whose
election or nomination for election was previously so approved) cease for any
reason to constitute a majority of the members of the Board of Directors then
in office.

 

19

 

“Closing Date” means the date of
this Agreement or such later Business Day upon which each condition described
in Section 7.2 shall be satisfied or waived in a manner acceptable to the
Administrative Agent in its discretion.

 

“Code” means the Internal Revenue
Code of 1986, as amended, and any successor statute thereto.

 

“Collateral Account” is defined
in Section 9.4 hereof.

 

“Compliance Certificate” is
defined in Section 8.5(c) hereof.

 

“Commitment” means, as to any
Lender, the obligation of such Lender to make Loans and to participate in Letters
of Credit issued for the account of the Borrower hereunder in an aggregate
principal or face amount at any one time outstanding not to exceed the amount
set forth opposite such Lender’s name on Schedule 1 attached hereto and
made a part hereof, as the same may be reduced or modified at any time or from
time to time pursuant to the terms hereof. 
The Commitments of the Lenders aggregate $80,000,000 on the date hereof.

 

“Commonly Controlled Entity”
means an entity, whether or not incorporated, that is under common control with
the Borrower within the meaning of Section 4001 of ERISA or that is part
of a group that includes the Borrower and is treated as a single employer under
Section 414(b), (c) or (m) of the Code.

 

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

 

“Credit Event” means the
advancing of any Loan, the continuation of or conversion into a Eurodollar
Loan, or the issuance of, or extension of the expiration date or increase in
the amount of, any Letter of Credit.

 

“Credit Facility Debt Service”
means, for any Fiscal Quarter, all interest and Letter of Credit fees payable
on the Loans or Letters of Credit or as part of the Obligations.

 

“Debt Service” means, for any
Fiscal Quarter, the sum of (a) Interest Expense and (b) the greater
of (i) zero or (ii) scheduled principal amortization paid on Total
Indebtedness (exclusive of any balloon payments or prepayments of principal
paid on such Total Indebtedness) less amortized
principal payments received on mortgage loans receivable or its REMIC
Certificate investments (exclusive of any balloon payments or prepayments of
principal received on mortgage loans receivable or on the underlying mortgage
loans of investments in REMIC Certificates).

 

20

 

“Default” means any event or
condition the occurrence of which would, with the passage of time or the giving
of notice, or both, constitute an Event of Default.

 

“Defined Benefit Plan” is defined
in Section 4.14(j) of the Code.

 

“EBITDA” means, for any period,
determined on a consolidated basis of the Borrower and its Subsidiaries, in
accordance with GAAP, the sum of net income (or loss) plus: (i) depreciation
and amortization expense; (ii) Interest Expense; (iii) income tax
expense; (iv) extraordinary, unrealized or non-recurring losses, including
impairment charges and reserves, minus:  (v) funds
received by the Borrower or a Subsidiary as rent but which are reserved for
capital expenses; (vi) unrealized gains on the sale of assets; and, (vii) income
tax benefits.

 

“Effective Date” means the date
all of the conditions precedent set forth in Section 7.2 have been
satisfied.

 

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

 

“Eligible Line of Business” means
any business engaged in as of the date of this Agreement by the Borrower or any
of its Subsidiaries.

 

“Eligible Property” means, as of
any Borrowing Base Determination Date, any Property owned by the Borrower or a
Material Subsidiary which satisfies the following conditions which would permit
such Property to be included in the Borrowing Base:

 

                   (a)        Is real property majority owned in fee
simple, or 100% leased by Borrower or a Material Subsidiary pursuant to a
Qualified Ground Lease; provided that for any Property owned less than 100%,
the Borrower or Material Subsidiary shall have the unilateral right to (i) sell,
transfer or otherwise dispose of such Property and (ii) to create a Lien
on such Property as security for Indebtedness for Borrowed Money;

 

                   (b)        Currently in service (not under
development or non-stabilized);

 

                   (c)        Senior Housing Asset located in the
United States;

 

                   (d)        Neither the Property nor the ownership
interest is subject to any Lien (other than Permitted Liens or Liens in favor
of the Borrower or a Material Subsidiary) or to any negative pledge;

 

                   (e)        If such Property is owned by a Material
Subsidiary, (i) none of the Borrower’s beneficial ownership interest in
such Material Subsidiary is subject to any Lien (other than certain Permitted
Liens or Liens in favor of the Borrower or a Material 

 

21

 

Subsidiary) or to any negative pledge, (ii) the Material
Subsidiary has the unilateral right to sell, transfer or otherwise dispose of
such Property and to create a Lien on such Property as security for
Indebtedness for Borrowed Money, and (iii) the Material Subsidiary has
provided a Guaranty to the Administrative Agent pursuant to Section 4.1
hereof;

 

                    (f)        That such Property, based on the
Borrower’s or a Material Subsidiary’s actual knowledge, is free of all material
structural defects or major architectural deficiencies, material title defects,
material environmental conditions or other adverse matters which, individually
or collectively, materially impair the value of such Property;

 

                   (g)        The lessee of the Property under such
lease is not more than 60 days past due with respect to any monthly rent
payment obligations under such lease, and,

 

                   (h)        For each such Property, the Borrower
shall have delivered to the Administrative Agent a copy, certified as true and
correct by the Borrower, of each of the following: if the Property Owner is not
the Borrower, the Property Owner’s articles of incorporation, by-laws,
partnership agreements, operating agreements, as applicable, and certificates
of existence, good standing and authority to do business from each appropriate
state authority, and partnership, corporate or limited liability company, as
applicable, authorizations authorizing the execution, delivery and performance
of the Additional Guarantor Supplement all certified to be true and complete by
a duly authorized officer of such Property Owner.

 

“Eligible Property NOI” means,
for any given period, the aggregate Property NOI attributable to the Eligible
Properties owned by the Borrower or a Material Subsidiary for a period in
excess of four Fiscal Quarters and defined for each such Eligible Property or
pool of such Eligible Properties under a master Lease as the lesser of (i) Property
NOI divided by 1.15, or (ii) the related Lease payment on such Eligible
Property or pool of Eligible Properties due to the Borrower or a Material
Subsidiary for such period.

 

“Environmental Claim” means any
investigation, notice, violation, demand, allegation, action, suit, injunction,
judgment, order, consent decree, penalty, fine, lien, proceeding or claim
(whether administrative, judicial or private in nature) arising (a) pursuant
to, or in connection with an actual or alleged violation of, any Environmental
Law, (b) in connection with any Hazardous Material, (c) from any
abatement, removal, remedial, corrective or response action in connection with
a Hazardous Material, Environmental Law or order of a governmental authority or
(d) from any actual or alleged damage, injury, threat or harm to health,
safety, natural resources or the environment.

 

“Environmental Law” means any
current or future Legal Requirement pertaining to (a) the protection of
health, safety and the indoor or outdoor environment, (b) the
conservation, management or use of natural resources and wildlife, (c) the
protection or use of surface water or groundwater, (d) the management,
manufacture, possession, presence, use, generation, transportation, treatment,
storage, disposal, Release, threatened Release, abatement, removal, remediation
or handling of, or exposure to, any Hazardous Material or (e) pollution
(including any Release to air, land, surface water or groundwater), and any
amendment, rule, regulation, order or directive issued thereunder.

 

22

 

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended, or any successor statute
thereto.

 

“ERISA Affiliate” means any
Person that for purposes of Title IV of ERISA is a member of the Borrower’s
controlled group, or is under common control with the Borrower, within the
meaning of Sections 414 and 4001 of the Code and the regulations
promulgated and rulings issued thereunder.

 

“Eurodollar Loan” means a Loan
bearing interest at the rate specified in Section 1.3(b) hereof.

 

“Eurodollar Reserve Percentage”
is defined in Section 1.3(b) hereof.

 

“Event of Default” means any
event or condition identified as such in Section 9.1 hereof.

 

“Event of Loss” means, with
respect to any Property, any of the following: 
(a) any total loss, destruction or damage of such Property or (b) any
total condemnation, seizure, or taking, by exercise of the power of eminent
domain or otherwise, of such Property, or confiscation of such Property or the
requisition of the use of such Property.

 

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

 

“Fiscal Quarter” means each of
the three-month periods ending on March 31, June 30, September 30
and December 31.

 

“Fiscal Year” means the
twelve-month period ending on December 31.

 

“Fixed Charges” means, for any
Fiscal Quarter, Debt Service for such quarter, plus Preferred Dividends for
such quarter, plus $400 per bed for any Property on which the Lease of such
Property does not require the tenant to pay for all capital expenditures.

 

“Foreign Subsidiary” means each Subsidiary
which (a) is organized under the laws of a jurisdiction other than the
United States of America or any state thereof, (b) conducts substantially
all of its business outside of the United States of America, and (c) has
substantially all of its assets outside of the United States of America.

 

23

 

“Former Plan” means any employee
benefit plan in respect of which the Borrower or a Commonly Controlled Entity
has engaged in a transaction described in Section 4069 or Section 4212(c) of
ERISA.

 

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

 

“Funds From Operations” or “FFO” means, for any period reported, as determined on a
consolidated basis of the Borrower, the sum of net income or (loss), plus:  (i) depreciation and amortization
expense; (ii) realized losses from extraordinary or non-recurring items; (iii) realized
losses on sales of real estate or other assets; (iv) impairment charges or
other loss reserves; and (v) provisions for income taxes for such period; minus: (i) gains (whether realized or unrealized) on
sales of real estate or other assets; and, (ii) income tax benefits for
such period.

 

“Future Property” means any
Property which the Borrower or any Subsidiary of the Borrower acquires after
the date hereof.

 

“GAAP” means generally accepted
accounting principles set forth from time to time in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board (or agencies with similar functions of comparable
stature and authority within the U.S. accounting profession), which are
applicable to the circumstances as of the date of determination.

 

“Governmental Authority” means
any foreign governmental authority, the United States of America, any state of
the United States of America and any subdivision of any of the foregoing, and
any agency, department, commission, board, authority or instrumentality, bureau
or court having jurisdiction over any Lender, the Borrower, any Subsidiaries of
the Borrower or any of their respective Properties.

 

“Guarantor” and “Guarantors” each is defined in Section 4.1 hereof.

 

“Guaranty” and “Guaranties” each is defined in Section 4.1 hereof.

 

“Hazardous Material” means any
substance, chemical, compound, product, solid, gas, liquid, waste, byproduct,
pollutant, contaminant or material which is hazardous or toxic, and includes,
without limitation, (a) asbestos, polychlorinated biphenyls and petroleum
(including crude oil or any fraction thereof) and (b) any material
classified or regulated as “hazardous” or “toxic” or words of like import
pursuant to an Environmental Law.

 

“Hazardous Material Activity”
means any activity, event or occurrence involving a Hazardous Material,
including, without limitation, the manufacture, possession, presence, use,
generation, transportation, treatment, storage, disposal, Release, threatened
Release, abatement, removal, remediation, handling of or corrective or response
action to any Hazardous Material.

 

24

 

“Hostile Acquisition” means the
acquisition of the capital stock or other equity interests of a Person through
a tender offer or similar solicitation of the owners of such capital stock or
other equity interests which has not been approved (prior to such acquisition)
by resolutions of the Board of Directors of such Person or by similar action if
such Person is not a corporation, and as to which such approval has not been
withdrawn.

 

“Indebtedness for Borrowed Money”
means for any Person (without duplication) (a) all indebtedness created,
assumed or incurred in any manner by such Person representing money borrowed
(including by the issuance of debt securities), (b) all indebtedness for
the deferred purchase price of property or services (other than trade accounts
payable arising in the ordinary course of business), (c) all indebtedness
secured by any Lien upon Property of such Person, whether or not such Person
has assumed or become liable for the payment of such indebtedness, (d) all
Capitalized Lease Obligations of such Person, and (e) all obligations of
such Person on or with respect to letters of credit, bankers’ acceptances and
other extensions of credit whether or not representing obligations for borrowed
money.

 

“Improvements” for any Property
means all buildings, structures, fixtures, tenant improvements and other
improvements of every kind and description now or hereafter located in or on or
attached to the Land for such Property; and all additions and betterments
thereto and all renewals, substitutions and replacements thereof.

 

“Initial Properties” means
collectively the Properties listed on Schedule 1.1 and “Initial Property” means any of such Properties.

 

“Insolvency” means, with respect
to any Multiemployer Plan, the condition that such Plan is insolvent within the
meaning of Section 4245 of ERISA.

 

“Interest Expense” means, with
respect to a Person for any period of time (a) the interest expense
whether paid, accrued or capitalized (without deduction of consolidated
interest income) of such Person for such period.  Interest Expense shall exclude any
amortization of (i) deferred financing fees, including the write-off such
fees relating to the early retirement of such related Indebtedness for Borrowed
Money, and (ii) debt discounts (but only to the extent such discounts do
not exceed 3.0% of the initial face principal amount of such debt).

 

“Interest Period” is defined in Section 1.6
hereof.

 

“Investment Amount” means for any
Property acquired after the date hereof, the product of (i) the percentage
interest of such Property owned by the Borrower or Guarantor and (ii) the
aggregate purchase price paid by the Borrower or Guarantor for such Property
(giving effect to any securities used to purchase a Property at the fair market
value of the securities at the time of purchase based upon the price at which
such securities could be exchanged into the Borrower’s common stock assuming
such exchange occurred on the date of acquiring the Property).

 

“Land” for any Property means the
real property upon which the Improvements are located, together with all
rights, title and interests appurtenant to such real property, including
without limitation all rights, title and interests to (a) all strips and
gores within or adjoining such 

 

25

 

property, (b) the streets, roads, sidewalks, alleys, and ways
adjacent thereto, (c) all of the tenements, hereditaments, easements,
reciprocal easement agreements, rights-of-way and other rights, privileges and
appurtenances thereunto belonging or in any way pertaining thereto, (d) all
reversions and remainders, (e) all air space rights, and all water, sewer
and wastewater rights, (e) all mineral, oil, gas, hydrocarbon substances
and other rights to produce or share in the production of anything related to
such property, and (f) all other appurtenances appurtenant to such
property, including without limitation, any now or hereafter belonging or in
anywise appertaining thereto.

 

“L/C Issuer” means the
Administrative Agent, or any other Lender requested by the Borrower and
approved by the Administrative Agent in its sole discretion with respect to any
Letter of Credit.

 

“L/C Obligations” means the
aggregate undrawn face amounts of all outstanding Letters of Credit and all
unpaid Reimbursement Obligations.

 

“L/C Sublimit” means $10,000,000
as reduced pursuant to the terms hereof.

 

“Lease” means any lease, tenancy
agreement, contract or other agreement for the use or occupancy of a Property
or any portion thereof.

 

“Legal Requirement” means any
treaty, convention, statute, law, regulation, ordinance, license, permit,
governmental approval, injunction, judgment, order, consent decree or other
requirement of any governmental authority, whether federal, state, or local.

 

“Lenders” means and includes Bank
of Montreal, Chicago Branch, Key Bank National Association and the other
financial institutions from time to time party to this Agreement, including any
new Lender pursuant to Section 1.14 hereof and each assignee Lender
pursuant to Section 13.12 hereof.

 

“Lending Office” is defined in Section 10.4
hereof.

 

“Letter of Credit” is defined in Section 1.2(a) hereof.

 

“LIBOR” is defined in Section 1.3(b) hereof.

 

“Lien” means any mortgage, lien,
security interest, pledge, charge or encumbrance of any kind in respect of any
Property, including the interests of a vendor or lessor under any conditional
sale, Capital Lease or other title retention arrangement.

 

“Loan” is defined in Section 1.2
hereof and, as so defined, includes an Adjusted Base Rate Loan or a Eurodollar
Loan, each of which is a “type” of Loan
hereunder.

 

“Loan Documents” means this
Agreement, the Notes, the Applications, the Guaranties,  and
each other instrument or document to be delivered hereunder or thereunder or
otherwise in connection therewith.

 

26

 

“Material Adverse Effect” means a
material and adverse effect on (a) the business, condition (financial or
otherwise), operations, performance or properties of the Borrower and its
Subsidiaries taken as a whole, (b) the ability of the Borrower or any
Guarantor to perform its obligations under the Loan Documents to which it is a
party or (c) the validity or enforceability of any of the Loan Documents
or the rights or remedies of the Administrative Agent or the Lenders
thereunder; provided, however, that the sale of
assets of one or more Guarantors in accordance with the terms of this Agreement
shall not be deemed in and of itself to cause a Material Adverse Effect absent
the presence of the factors set forth above.

 

“Material Subsidiary” means, each
Subsidiary that owns a Property included in the Borrowing Base Value and
Education Property Investors, Inc.

 

“Medical Office Buildings” means
a medical office building that contains one or more physicians’ offices and
examination rooms, and may also include pharmacies, hospital ancillary service
space and day-surgery operating rooms.

 

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

 

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

 

“Multiple Employer Plan” means a
single employer plan, as defined in Section 4001(a)(15) of ERISA and
subject to Title IV thereof, that (a) is maintained by the Borrower or an
ERISA Affiliate and at least one Person other than the Borrower and its ERISA
Affiliates or (b) was so maintained previously, but is not currently
maintained by the Borrower or its ERISA Affiliates, and in respect of which the
Borrower or an ERISA Affiliate would still have liability under Section 4063,
4064 or 4069 of ERISA in the event such plan has been or were to be terminated.

 

“Note” is defined in Section 1.10
hereof.

 

“Obligations” means all
obligations of the Borrower to pay principal and interest on the Loans, all
Reimbursement Obligations owing under the Applications, all fees and charges
payable hereunder, and all other payment obligations of the Borrower or any of
its Subsidiaries arising under or in relation to any Loan Document, in each
case whether now existing or hereafter arising, due or to become due, direct or
indirect, absolute or contingent, and howsoever evidenced, held or acquired.

 

“Participating Interest” is
defined in Section 1.2(d) hereof.

 

“Participating Lender” is defined
in Section 1.2(d) hereof.

 

“PBGC” means the Pension Benefit
Guaranty Corporation or any Person succeeding to any or all of its functions
under ERISA.

 

27

 

“Percentage” means, for each
Lender, the percentage of the Commitments represented by such Lender’s Credit
Commitment or, if the Commitments have been terminated, the percentage held by
such Lender (including through participation interests in Reimbursement
Obligations) of the aggregate principal amount of all Loans and
L/C Obligations then outstanding.

 

“Permitted Acquisition” means any
Acquisition with respect to which all of the following conditions shall have
been satisfied:

 

                   (a)        the Acquired Business is in an Eligible
Line of Business and has its primary operations within the United States of
America;

 

                   (b)        the Acquisition shall not be a Hostile
Acquisition;

 

                   (c)        the investment or acquisition is an
asset associated with an Eligible Line of Business which may include but is not
limited to sale/leaseback transactions, mortgage loans, lines of credit or other
financings, etc.;

 

                   (d)        if a new Material Subsidiary is formed
or acquired as a result of or in connection with the Acquisition, the Borrower
shall have complied with the requirements of Section 4 hereof in
connection therewith; and

 

                   (e)        after giving effect to the Acquisition,
no Default or Event of Default shall exist, including with respect to the
financial covenants contained in Section 8.21 hereof, further
provided however, that if such Acquisition together with any other
Acquisitions made during the then-current Fiscal Quarter and the preceding
three Fiscal Quarters of the Borrower have an aggregate cost exceeding
$100,000,000, then for such Acquisition and thereafter for any additional
Acquisition in such then-current Fiscal Quarter for an aggregate cost exceeding
$20,000,000, the Borrower shall provide to the Administrative Agent covenant
calculations for the covenants contained in Section 8.21, showing that the
projected effect of the Acquisition, in terms of additional asset value,
liabilities incurred if any, additional revenues and expenses associated
therewith have been contemplated and have been projected into the expected
operating results and financial position of the Borrower for the Fiscal Quarter
in which the Acquisition occurs, and demonstrating that such Acquisition is not
reasonably expected to cause a violation of the Section 8.21 covenants for
such Fiscal Quarter.

 

“Permitted Lien” means such of
the following as to which no enforcement, collection, execution, levy or
foreclosure proceeding has been commenced: 
(a) Liens for taxes, assessments and governmental charges or levies
to the extent not required to be paid under Section 8.3; (b) Liens
imposed by law, such as materialmen’s, mechanics’, carriers’, workmen’s and
repairmen’s Liens and other similar Liens arising in the ordinary course of
business securing obligations that are not overdue or that are being contested
in good faith and by proper proceedings and as to which appropriate reserves
are being maintained; (c) pledges or deposits to secure obligations under
workers’ compensation laws or similar legislation or to secure public or
statutory obligations; (d) easements, rights of way and other encumbrances
on title to real 

 

28

 

property that do not materially and adversely affect the value of such
property or the use of such property for its present purposes; (e) deposits
to secure the performance of bids, trade contracts (other than for borrowed
money), leases, statutory obligations, surety and appeal bonds, performance
bonds and other obligations of like nature incurred in the ordinary course of
business; (f) Liens in favor of the United States of America for amounts
paid to the Borrower or any Subsidiary as progress payments under government
contracts entered into by it; (g) attachment, judgment and other similar
Liens arising in connection with court, reference or arbitration proceedings,
provided that the same have been in existence less than 20 days, that the same
have been discharged or that execution or enforcement thereof has been stayed
pending appeal; and (h) Liens on Properties not included in the Borrowing
Base Value.

 

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

 

“Plan” means any employee pension
benefit plan covered by Title IV of ERISA or subject to the minimum
funding standards under Section 412 of the Code that either (a) is
maintained by a member of the Controlled Group for employees of a member of the
Controlled Group or (b) is maintained pursuant to a collective bargaining
agreement or any other arrangement under which more than one employer makes
contributions and to which a member of the Controlled Group is then making or
accruing an obligation to make contributions or has within the preceding five
plan years made contributions.

 

“Preferred Dividends” means any
dividend paid (or payable), as the case may be, in cash on any preferred equity
security issued by the Borrower.

 

“Prime Rate” shall mean the rate
of interest per annum publicly announced by the Administrative Agent from time
to time as its U.S. prime rate in effect at its office in Chicago, Illinois;
each change in the Prime Rate shall be effective from and including the date
such change is publicly announced as being effective.  The Prime Rate is a reference rate and does
not necessarily represent the lowest or best rate charged to any customer.  The Administrative Agent may make commercial
loans or other loans at rates of interest at, above or below the Prime Rate.

 

“Prior Credit Agreement” is
defined in the first paragraph of the Preliminary Statements on Page 1 of
this Agreement.

 

“Property or Properties” means,
as to any Person, all types of real, personal, tangible, intangible or mixed
property owned by such Person whether or not included in the most recent
balance sheet of such Person and its subsidiaries under GAAP, including any
Eligible Property owned by the Borrower or any of its Subsidiaries.

 

“Property Net Operating Income”
or “Property NOI” means, with respect to a
Property and for the four most recently ended Fiscal Quarters, the sum of the
following (without duplication):  (a) all
revenues received in the ordinary course of operating such Property (including
proceeds of rent loss insurance but excluding pre-paid rents and revenues and
security deposits except to the extent applied in satisfaction of tenants’ obligations
for rent) minus (b) all 

 

29

 

expenses (whether paid or accrued) directly related to the operation or
maintenance of such Property, including but not limited to payroll expenses,
taxes, assessments and other similar charges, insurance, utilities,
maintenance, repair and landscaping expenses but not including any management
fees (in accordance with the computation of EBITDA plus
rent and management fees).  All amounts
due to the Borrower or Guarantor, whether as rent or mortgage payments for the
property, will be excluded from the calculation of (b) above.

 

“Property Owner” means the Person
who owns fee or leasehold title interest (as applicable) in, and to a Property.

 

“Qualified Ground Lease” means each
of the ground leases or subground leases set forth on Schedule 1.1 hereto
and for a Future Property means any ground lease (a) which is a direct
ground lease granted by the fee owner of real property, (b) which may be
transferred and/or assigned without the consent of the lessor (or as to which
the lease expressly provides that (i) such lease may be transferred and/or
assigned with the consent of the lessor and (ii) such consent shall not be
unreasonably withheld or delayed) or subject to certain reasonable pre-defined
requirements, (c) which has a remaining term (including any renewal terms
exercisable at the sole option of the lessee) of at least twenty (20) years, (d) under
which no material default has occurred and is continuing, (e) with respect
to which a Lien may be granted without the consent of the lessor, (f) which
contains lender protection provisions acceptable to the Administrative Agent,
including, without limitation, provisions to the effect that (i) the
lessor shall notify any holder of a Lien in such lease of the occurrence of any
default by the lessee under such lease and shall afford such holder the option
to cure such default, and (ii) in the event that such lease is terminated,
such holder shall have the option to enter into a new lease having terms
substantially identical to those contained in the terminated lease and (g) which
is otherwise acceptable in form and substance to the Administrative Agent.

 

“RCRA” means the Solid Waste
Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976
and Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. §§6901 et seq., and
any future amendments.

 

“Real Property” for any Senior
Housing Asset means the Land and the Improvements for such Senior Housing
Asset, including without limitation, parking rights and any and all real
property rights to other ancillary functions necessary for the operation of
such Senior Housing Asset.

 

“Rehabilitation Assets” means
healthcare facilities which are used primarily for the provision of services to
patients requiring rehabilitative or restorative care, including some or all of
the following services but not limited to physical therapy, occupational
therapy, speech therapy and other related services.

 

“Reimbursement Obligation” is
defined in Section 1.2(c) hereof.

 

“REIT” means a real estate
investment trust under Sections 856-860 of the Code.

 

30

 

“Release” means any spilling,
leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping,
leaching, migration, dumping, or disposing into the indoor or outdoor
environment, including, without limitation, the abandonment or discarding of
barrels, drums, containers, tanks or other receptacles containing or previously
containing any Hazardous Material.

 

“REMIC” means Real Estate Mortgage
Investment Conduit.

 

“REMIC Certificates” means individually
or collectively a certificated beneficial interest in a REMIC.

 

“Reorganization” means, with respect to
any Multiemployer Plan, the condition that such plan is in reorganization
within the meaning of Section 4241 of ERISA.

 

“Reportable Event” means any of the
events set forth in Section 4043(c) of ERISA, 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 Reg. §4043.

 

“Required Lenders” means, as of
the date of determination thereof, Lenders whose outstanding Loans and
interests in Letters of Credit and Unused Commitments constitute more than
66-2/3% of the sum of the total outstanding Loans, interests in Letters of
Credit, and Unused Commitments of the Lenders.

 

“Responsible Officer” means the
Chief Executive Officer, President, Executive Vice President, Chief Operating
Officer, Chief Financial Officer, or Treasurer of any Person.

 

“Revolving Credit” means the
credit facility for making Loans and issuing Letters of Credit described in
Sections 1.1 and 1.2 hereof.

 

“Rolling Period” means, as of any
date, the four Fiscal Quarters ending on or immediately preceding such date.

 

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

 

“Secured Debt” means as of any
date of determination, the aggregate principal amount of all indebtedness
outstanding of the Borrower and its Subsidiaries, evidenced by notes, bonds,
debentures or similar instruments and capital lease obligations that are
secured by a Lien (other than certain Permitted Encumbrances).

 

“Secured Recourse Debt” means
Secured Debt that is recourse for payment to the Borrower or its Subsidiaries.

 

“Senior Housing Assets” means any
Property on which the improvements consist only of one or more of the
following:  (a) senior apartments, (b) independent
living facilities, (c) congregate communities, (d) assisted living
facilities, (e) nursing homes, (f) hospitals and 

 

31

 

(g) other Property primarily used for senior citizen residences or
health care services, together with other improvements incidental thereto.

 

“Significant Lease” means any
Lease under which the Borrower or one of its Subsidiaries is the lessor and
which Lease provides for minimum rent payments of $1,000,000 or more during any
calendar year.

 

“Single Employer Plan” means any Plan
that is covered by Title IV of ERISA but is not a Multiemployer Plan.

 

“SNF’s” is defined in the
definition of Capitalization Rate.

 

“Stock” means shares of capital
stock, beneficial or partnership interests, participations or other equivalents
(regardless of how designated) of or in a corporation or equivalent entity,
whether voting or non-voting, and includes, without limitation, common stock,
but excluding any preferred stock or other preferred equity security.

 

“Stock Equivalents” means all
securities (other than Stock) convertible into or exchangeable for Stock at the
option of the holder, and all warrants, options or other rights to purchase or
subscribe for any stock, whether or not presently convertible, exchangeable or
exercisable.

 

“Subsidiary” means, as to any
particular parent corporation or organization, any other corporation or
organization more than 50% of the outstanding Voting Stock of which is at the
time directly or indirectly owned by such parent corporation or organization or
by any one or more other entities which are themselves subsidiaries of such
parent corporation or organization. 
Unless otherwise expressly noted herein, the term “Subsidiary”
means a Subsidiary of the Borrower or of any of its direct or indirect
Subsidiaries.

 

“Tangible Net Worth” means for
each applicable period, total stockholders’ equity on the Borrower’s
consolidated balance sheet as reported in its Form 10-K or 10-Q less all
amounts appearing on the assets side of its consolidated balance sheet
representing an intangible asset under GAAP.

 

“Termination Date” means July 17, 2011,
or such earlier date on which the Commitments are terminated in whole pursuant
to Section 1.12, 9.2 or 9.3 hereof.

 

“Total Asset Value” means the
book value, without giving effect to depreciation, of all assets of the
Borrower and its Subsidiaries at such time; less (a) the
amount, if any, of the Borrower’s investment in any unconsolidated subsidiary,
joint venture or other similar entity, and (b) all amounts appearing on
the assets side of its consolidated balance sheet separately identifiable as
intangible assets under GAAP.

 

“Total Indebtedness” means, as of
a given date, all liabilities of the Borrower and its Subsidiaries which would,
in conformity with GAAP, be properly classified as a liability on a
consolidated balance sheet of the Borrower and its Subsidiaries as of such
date, excluding any amounts categorized as accrued expenses, accrued dividends,
deposits held, deferred revenues, minority interests and other liabilities not
directly associated with the borrowing of money.

 

32

 

“Unconsolidated Affiliates” means
an Affiliate of the Borrower whose financial statements are not required to be
consolidated with the financial statements of the Borrower in accordance with
GAAP.

 

 “Unfunded
Vested Liabilities”  means,
for any Plan at any time, the amount (if any) by which the present value of all
vested nonforfeitable accrued benefits under such Plan exceeds the fair market
value of all Plan assets allocable to such benefits, all determined as of the
then most recent valuation date for such Plan, but only to the extent that such
excess represents a potential liability of a member of the Controlled Group to
the PBGC or the Plan under Title IV of ERISA.

 

“Unsecured Debt” means, with
respect to a Person as of any given date, the aggregate principal amount of all
Total Indebtedness of such Person outstanding at such date that is not Secured
Indebtedness (excluding Total Indebtedness associated with Unconsolidated
Affiliates that is not guaranteed by the Borrower or a Subsidiary of the
Borrower) and in the case of the Borrower shall include (without duplication)
Total Indebtedness that does not constitute Secured Indebtedness.

 

“Unsecured Debt Service” means,
for a given period, Debt Service with respect to Unsecured Debt.

 

“Unused Commitments” means, at
any time, the difference between the Commitments then in effect and the
aggregate outstanding principal amount of Loans and L/C Obligations.

 

“U.S. Dollars” and “$” each means the lawful currency of the United States of
America.

 

“Voting Stock” of any Person
means capital stock or other equity interests of any class or classes (however
designated) having ordinary power for the election of directors or other
similar governing body of such Person, other than stock or other equity
interests having such power only by reason of the happening of a contingency.

 

“Welfare Plan” means a “welfare
plan” as defined in Section 3(1) of ERISA.

 

“Wholly-owned Subsidiary” means a
Subsidiary of which all of the issued and outstanding shares of capital stock
(other than directors’ qualifying shares as required by law) or other equity
interests are owned by the Borrower and/or one or more Wholly-owned
Subsidiaries within the meaning of this definition.

 

Section 5.2.      Interpretation.
 The foregoing definitions are equally
applicable to both the singular and plural forms of the terms defined.  The words “hereof”, “herein”, and “hereunder” and
words of like import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement.  All references to time of day herein are
references to Chicago, Illinois, time unless otherwise specifically provided.  Where the character or amount of any asset or
liability or item of income or expense is required to be determined or any
consolidation or other accounting computation is required to be made for the
purposes of this Agreement, it shall be done in accordance with GAAP except
where such principles are inconsistent with the specific provisions of this
Agreement.

 

33

 

Section 5.3.      Change
in Accounting Principles. 
If, after the date of this Agreement, there shall occur any change in
GAAP from those used in the preparation of the financial statements referred to
in Section 6.5 hereof and such change shall result in a change in the
method of calculation of any financial covenant, standard or term found in this
Agreement, either the Borrower or the Required Lenders may by notice to the
Lenders and the Borrower, respectively, require that the Lenders and the
Borrower negotiate in good faith to amend such covenants, standards, and term
so as equitably to reflect such change in accounting principles, with the
desired result being that the criteria for evaluating the financial condition
of the Borrower and its Subsidiaries shall be the same as if such change had
not been made.  No delay by the Borrower
or the Required Lenders in requiring such negotiation shall limit their right
to so require such a negotiation at any time after such a change in accounting
principles.  Until any such covenant,
standard, or term is amended in accordance with this Section 5.3,
financial covenants shall be computed and determined in accordance with GAAP in
effect prior to such change in accounting principles.  Without limiting the generality of the
foregoing, the Borrower shall neither be deemed to be in compliance with any
financial covenant hereunder nor out of compliance with any financial covenant
hereunder if such state of compliance or noncompliance, as the case may be,
would not exist but for the occurrence of a change in accounting principles
after the date hereof.

 

SECTION 6.                                     REPRESENTATIONS
AND WARRANTIES.

 

The Borrower represents and warrants to the
Administrative Agent and the Lenders as follows:

 

Section 6.1.      Organization
and Qualification.  The
Borrower is duly organized, validly existing, and in good standing as a
corporation under the laws of the State of Maryland, has full and adequate
power to own its Property and conduct its business as now conducted, and is
duly licensed or qualified and in good standing in each jurisdiction in which
the nature of the business conducted by it or the nature of the Property owned
or leased by it requires such licensing or qualifying.

 

Section 6.2.      Subsidiaries.
 Each Subsidiary is duly organized,
validly existing, and in good standing under the laws of the jurisdiction in
which it is organized, has full and adequate power to own its Property and conduct
its business as now conducted, and is duly licensed or qualified and in good
standing in each jurisdiction in which the nature of the business conducted by
it or the nature of the Property owned or leased by it requires such licensing
or qualifying.  Schedule 6.2 hereto
identifies each Subsidiary as of the date hereof and as updated from time to
time as provided in Section 8.5(j), the jurisdiction of its organization,
the percentage of issued and outstanding shares of each class of its capital
stock or other equity interests owned by the Borrower and the other
Subsidiaries and, if such percentage is not 100% (excluding directors’
qualifying shares as required by law), a description of each class of its
authorized capital stock and other equity interests and the number of shares of
each class issued and outstanding.  All
of 

 

34

 

the outstanding shares of capital stock and other equity interests of
each Subsidiary are validly issued and outstanding and fully paid and
nonassessable and all such shares and other equity interests indicated on
Schedule 6.2 as owned by the Borrower or another Subsidiary are owned,
beneficially and of record, by the Borrower or such Subsidiary free and clear
of all Liens.  Neither the Borrower or
any of its Subsidiaries has committed or is obligated to issue Stock
Equivalents in any of the Borrower’s Subsidiaries to any Person not owned by
the Borrower or its Subsidiaries.

 

Section 6.3.      Authority
and Validity of Obligations. 
The Borrower has full right and authority to enter into this Agreement
and the other Loan Documents executed by it, to make the borrowings herein
provided for, to issue its Notes in evidence thereof, and to perform all of its
obligations hereunder and under the other Loan Documents executed by it.  Each Material Subsidiary has full right and
authority to enter into the Loan Documents executed by it, to guarantee the
Obligations and to perform all of its obligations under the Loan Documents
executed by it.  The Loan Documents
delivered by the Borrower and by each Material Subsidiary have been duly
authorized, executed, and delivered by such Person and constitute valid and
binding obligations of such Person enforceable against it in accordance with
their terms, except as enforceability may be limited by bankruptcy, insolvency,
fraudulent conveyance or similar laws affecting creditors’ rights generally and
general principles of equity (regardless of whether the application of such
principles is considered in a proceeding in equity or at law); and this
Agreement and the other Loan Documents do not, nor does the performance or
observance by the Borrower or any Subsidiary of any of the matters and things
herein or therein provided for, (a) contravene or constitute a default
under any provision of law or any judgment, injunction, order or decree binding
upon the Borrower or any Material Subsidiary or any provision of the
organizational documents (e.g., charter,
certificate or articles of incorporation and by-laws, certificate or articles
of association and operating agreement, partnership agreement, or other similar
organizational documents)  of the
Borrower or any Material Subsidiary, (b) contravene or constitute a
default under any covenant, indenture or agreement of or affecting the Borrower
or any Material Subsidiary or any of its Property or (c) result in the
creation or imposition of any Lien on any Property of the Borrower or any
Material Subsidiary.

 

Section 6.4.      Use
of Proceeds; Margin Stock. 
The Borrower shall use the proceeds of the Revolving Credit for
refinancing its existing indebtedness, for its general working capital purposes
and for such other legal and proper purposes as are consistent with all
applicable laws.  Neither the Borrower
nor any Subsidiary is engaged in the business of extending credit for the
purpose of purchasing or carrying margin stock (within the meaning of
Regulation U of the Board of Governors of the Federal Reserve System), and
no part of the proceeds of any Loan or any other extension of credit made
hereunder will be used to purchase or carry any such margin stock or to extend
credit to others for the purpose of purchasing or carrying any such margin
stock.  Margin stock (as hereinabove defined)
constitutes less than 25% of the assets of the Borrower and its Subsidiaries
which are subject to any limitation on sale, pledge or other restriction
hereunder.

 

35

 

Section 6.5.                                          Financial
Reports.   The consolidated
balance sheet of the Borrower and its Subsidiaries as at December 31,
2007, and the related consolidated statements of income, retained earnings and
cash flows of the Borrower and its Subsidiaries for the fiscal year then ended,
and accompanying notes thereto, which financial statements are accompanied by
the audit report of Ernst & Young, LLP, independent public
accountants, and the unaudited interim consolidated balance sheet of the
Borrower and its Subsidiaries as at March 31, 2008 and the related
consolidated statements of income, retained earnings and cash flows of the
Borrower and its Subsidiaries for the three (3) months then ended,
heretofore furnished to the Administrative Agent and the Lenders, fairly
present the consolidated financial condition of the Borrower and its
Subsidiaries as at said dates and the consolidated results of their operations
and cash flows for the periods then ended in conformity with GAAP applied on a
consistent basis.  Neither the Borrower
nor any Subsidiary has contingent liabilities which are material to it other
than as indicated on such financial statements or, with respect to future
periods, on the financial statements furnished pursuant to Section 8.5
hereof.

 

Section 6.6.                                          No
Material Adverse Change.  Since March 31,
2008, there has been no event which could reasonably be expected to have a
Material Adverse Effect on the Borrower or its Subsidiaries, taken as a whole,
except those occurring in the ordinary course of business.

 

Section 6.7.                                          Full
Disclosure.  The statements and
information furnished to the Administrative Agent and the Lenders in connection
with the negotiation of this Agreement and the other Loan Documents and the
commitments by the Lenders to provide all or part of the financing contemplated
hereby do not contain any untrue statements of a material fact or omit a
material fact necessary to make the material statements contained herein or
therein not misleading, the Administrative Agent and the Lenders acknowledging
that as to any projections furnished to the Administrative Agent and the
Lenders, the Borrower only represents that the same were prepared on the basis
of information and estimates the Borrower believed to be reasonable.

 

Section 6.8.                                          Trademarks,
Franchises, and Licenses.  The
Borrower and its Subsidiaries own, possess, or have the right to use all
necessary patents, licenses, franchises, trademarks, trade names, trade styles,
copyrights, trade secrets, know how, and confidential commercial and proprietary
information to conduct their businesses as now conducted, without known
conflict with any patent, license, franchise, trademark, trade name, trade
style, copyright or other proprietary right of any other Person.

 

Section 6.9.                                          Governmental
Authority and Licensing.  The
Borrower and its Subsidiaries have received all licenses, permits, and
approvals of all federal, state, and local governmental authorities, if any,
necessary to conduct their businesses, in each case where the failure to obtain
or maintain the same could reasonably be expected to have a Material Adverse
Effect.  No investigation or proceeding
which, if adversely determined, could reasonably be expected to result in
revocation or denial of any material license, permit or approval is pending or,
to the knowledge of the Borrower, threatened.

 

Section 6.10.                                   Good
Title.  The Borrower and its
Subsidiaries have good and defensible title (or valid leasehold interests) to
their assets as reflected on the most recent consolidated balance sheet  of the Borrower and its Subsidiaries
furnished to the Administrative Agent and the Lenders (except for sales of
assets in the ordinary course of business), subject to no Liens other than such
thereof as are permitted by Section 8.8  hereof.

 

36

 

Section 6.11.                                   Litigation
and Other Controversies.  There is no
litigation or governmental or arbitration proceeding or labor controversy
pending, nor to the knowledge of the Borrower threatened, against the Borrower or
any Subsidiary which if adversely determined, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.

 

Section 6.12.                                   Taxes.
Each of the Borrower and its Subsidiaries has filed, or there has been filed on
its behalf, all tax returns (federal, state, local and foreign) required to be
filed thereby and has paid all taxes shown thereon to be due, including
interest, additions to taxes and penalties, or has provided adequate reserves
in accordance with GAAP for payment thereof, except where the failure to so
file or pay would not cause a Material Adverse Effect on the Borrower and its
Subsidiaries taken as whole.

 

Section 6.13.                                   Approvals.  No authorization, consent, license or
exemption from, or filing or registration with, any court or governmental
department, agency or instrumentality, nor any approval or consent of any other
Person, is or will be necessary to the valid execution, delivery or performance
by the Borrower or any Subsidiary of any Loan Document, except for such
approvals which have been obtained prior to the date of this Agreement and
remain in full force and effect.

 

Section 6.14.                                   Affiliate
Transactions.  Neither the Borrower
nor any Subsidiary is a party to any contracts or agreements with any of its Affiliates
(other than with Wholly-owned Subsidiaries) on terms and conditions which are
less favorable to the Borrower or such Subsidiary than would be usual and
customary in similar contracts or agreements between Persons not affiliated
with each other.

 

Section 6.15.                                   Investment
Company; Public Utility Holding Company. 
Neither the Borrower nor any Subsidiary is an “investment company” or a
company “controlled” by an “investment company” within the meaning of the
Investment Company Act of 1940, as amended, or a “public utility holding
company” within the meaning of the Public Utility Holding Company Act of 1935,
as amended.

 

Section 6.16.                                   ERISA.  During the 5-year period before each date as
of which this representation is made or deemed made with respect to any Plan
(or, with respect to (f) and (h) below, as of the date on which such
representation is made or deemed made), none of the following events or
conditions, either individually or in the aggregate, has occurred and could
reasonably be expected to have a Material Adverse Effect:  (a) a Reportable Event; (b) an “accumulated
funding deficiency” (within the meaning of Section 412 of the Code or Section 302
of ERISA); (c) noncompliance with the applicable provisions of ERISA or
the Code; (d) termination of a Single Employer Plan; (e) a Lien on
the property of the Borrower or any Subsidiary in favor of the PBGC or a Plan; (f) a
complete or partial withdrawal from a Multiemployer Plan by the Borrower or any
Commonly Controlled Entity; (g) a liability of the Borrower or a Commonly
Controlled Entity under ERISA if the Borrower or such Commonly Controlled
Entity were to withdraw completely from all Multiemployer Plans as of the
annual valuation date most closely preceding the date on which this
representation is made or deemed made; (h) the Reorganization or
Insolvency of any Multiemployer Plan; and (i) an event or condition with
respect to which the Borrower or any Commonly Controlled Entity could
reasonably be expected to incur any liability in respect of a Former Plan.  Neither the Borrower nor any Subsidiary
maintains or participates in any Defined Benefit Plan or Multiple Employer
Plan.

 

37

 

Section 6.17.                                   Compliance
with Laws.  (a) The Borrower and
its Subsidiaries are in compliance with the requirements of all federal, state
and local laws, rules and regulations applicable to or pertaining to their
Property or business operations (including, without limitation, the
Occupational Safety and Health Act of 1970, the Americans with Disabilities Act
of 1990, and laws and regulations establishing quality criteria and standards
for air, water, land and toxic or hazardous wastes and substances), where any
such non-compliance, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

 

(b)                                 Without
limiting the representations and warranties set forth in Section 6.17(a) above,
except for such matters, individually or in the aggregate, which could not
reasonably be expected to result in a Material Adverse Effect, the Borrower
represents and warrants that to the actual knowledge of each respectively that
the Borrower and its Subsidiaries, and each of the Properties owned by them: (i) comply
in all material respects with all applicable Environmental Laws; (ii) the
tenants of the Borrower and its Subsidiaries have obtained all governmental
approvals required for the operation of the Properties under any applicable
Environmental Law; (iii) the Borrower and its Subsidiaries have no actual
knowledge of any other Person who has, caused any Release, threatened Release
or disposal of any Hazardous Material at, on, about, or off any of the
Properties in any material quantity and, to the actual the knowledge of the
Borrower, none of the Properties are adversely affected by any Release,
threatened Release or disposal of a Hazardous Material originating or emanating
from any other property; (iv) none of the Properties contain or have
contained any:  (1) underground
storage tanks in which any Hazardous Material is being or has been treated,
stored or disposed of on any Property owned by the Borrower or any Subsidiary,
in each case in any manner not in compliance in all material respects with all
applicable Environmental Laws, (2) material amounts of asbestos containing
building material, (3) landfills or dumps, (4) hazardous waste
management facility as defined pursuant to RCRA or any comparable state law, or
(5) site on or nominated for the National Priority List promulgated
pursuant to CERCLA or any state remedial priority list promulgated or published
pursuant to any comparable state law; (v) the Borrower and its
Subsidiaries have not used a material quantity of any Hazardous Material and
have conducted no Hazardous Material Activity at any of the Properties; (vi) the
Borrower and its Subsidiaries have no material liability for response or
corrective action, natural resource damage or other harm pursuant to CERCLA,
RCRA or any comparable state law; (vii) the Borrower and its Subsidiaries
are not subject to, have no notice or actual knowledge of and are not required
to give any notice of any Environmental Claim involving the Borrower or any
Subsidiary or any of their Properties, and there are no conditions or
occurrences at any of their Properties which could reasonably be anticipated to
form the basis for an Environmental Claim against the Borrower or any
Subsidiary or such Property; (viii) none of the Properties are subject to
any, and the Borrower has no actual knowledge of any imminent restriction on
the ownership, occupancy, use or transferability of their Properties in
connection with any (1) Environmental Law or (2) Release, threatened
Release or disposal of a Hazardous Material; and (ix) there are no
conditions or circumstances at any of their Properties which pose an
unreasonable risk to the environment or the health or safety of Persons.

 

38

 

Section 6.18.                                   Other
Agreements.  Neither the Borrower nor
any Subsidiary is in default under the terms of any covenant, indenture or
agreement of or affecting such Person or any of its Property, which default if
uncured could reasonably be expected to have a Material Adverse Effect.  Neither Borrower nor any Subsidiary shall
enter into an amendment or modification of any contract or agreement which
could reasonably be expected to have a Material Adverse Effect.

 

Section 6.19.                                   Solvency.  The Borrower and its Subsidiaries are
solvent, able to pay their debts as they become due, and have sufficient
capital to carry on their business and all businesses in which they are about
to engage.

 

Section 6.20.                                   No
Broker Fees. No broker’s or finder’s fee or commission will be payable with
respect hereto or any of the transactions contemplated thereby; and the
Borrower hereby agrees to indemnify the Administrative Agent and the Lenders
against, and agree that they will hold the Administrative Agent and the Lenders
harmless from, any claim, demand, or liability for any such broker’s or finder’s
fees alleged to have been incurred in connection herewith or therewith and any
expenses (including reasonable attorneys’ fees) arising in connection with any
such claim, demand, or liability.

 

Section 6.21.                                   No
Default.  No Default or Event of
Default has occurred and is continuing.

 

Section 6.22.                                   Stock
of the Borrower.  As of June 30,
2008, the entire outstanding capital stock of the Borrower consists of (i) Series C
Cumulative Convertible Preferred Stock, 2,000,000 shares; (ii) Series E
Cumulative Convertible Preferred Stock, 70,835 shares; (iii) Series F
Cumulative Preferred Stock, 6,003,700 shares; and (iv) Common Stock,
23,091,225 shares; all of which are duly and validly issued and outstanding,
fully paid and nonassessable as of the Effective Date.  The issuance and sale of such Stock of the
Borrower either (i) has been registered under applicable federal and state
securities laws or (ii) was issued pursuant to an exemption
therefrom.  The Borrower meets the
requirements for taxation as a REIT under the Code.

 

Section 6.23.                                   Condition
of Property; Casualties; Condemnation. 
As of the Effective Date, to the actual knowledge of the Borrower or its
Material Subsidiaries, each Property owned by them, in all material respects (a) is
in good repair, working order and condition, normal wear and tear excepted, (b) is
free of structural defects, (c) is not subject to material deferred
maintenance and (d) has and will have all building systems contained
therein in good repair, working order and condition, normal wear and tear
excepted.  To the actual knowledge of the
Borrower or of any of its Material Subsidiaries, none of the Properties owned
by them is currently materially and adversely affected as a result of any fire,
explosion, earthquake, flood, drought, windstorm, accident, strike or other
labor disturbance, embargo, requisition or taking of property or cancellation
of contracts, permits or concessions by a Governmental Authority, riot,
activities of armed forces or acts of God or of any public enemy.  No condemnation or other like proceedings
that has had, or could reasonably be expected to result in, a Material Adverse
Change, are pending and served nor, to the actual knowledge of the Borrower,
threatened against any Property owned by it in any manner whatsoever.  No casualty has occurred to any such Property
that could reasonably be expected to have a Material Adverse Effect.

 

39

 

Section 6.24.                                   Legal
Requirements and Zoning.  To the
actual knowledge of the Borrower and its Subsidiaries, the use and operation of
each Property owned by the Borrower and its Subsidiaries constitutes a legal
use under applicable zoning regulations (as the same may be modified by special
use permits or the granting of variances) and complies in all material respects
with all Legal Requirements, and does not violate in any material respect any
material approvals, material restrictions of record or any material agreement
affecting any such Property (or any portion thereof).

 

Section 6.25.                                   Qualified
Ground Leases.  The only material leases
of Eligible Properties for which either the Borrower or a Guarantor is a lessee
are the Qualified Ground Leases.  The
Property Owner for a Real Property subject to a Qualified Ground Lease is the
lessee under such Qualified Ground Lease and no consent is necessary to such
Person being the lessee under such Qualified Ground Lease which has not already
been obtained.  The Qualified Ground
Leases are in full force and effect and no defaults exist thereunder.

 

Section 6.26.                                   No
Defaults; Landlord is in Compliance with Leases.  Schedule 6.26 hereto identifies each
Significant Lease in existence on the date hereof, the Property which is
demised pursuant to each Significant Lease and the name of each landlord and
lessee under each Significant Lease.  As
of the Effective Date: (i) none of the tenants under Significant Leases on
Properties owned by the Borrower, Material Subsidiaries or any other Subsidiary
of the Borrower are in default for a period in excess of 60 days on the
monthly minimum rent payments due under such Significant Leases and (ii) no
other tenants on other Leases that in the aggregate generate more than
$4,000,000 in annual contractual rents payable to the Borrower or its
Subsidiaries are in default for a period in excess of 60 days on the monthly
minimum rent payments due under such Leases.

 

SECTION 7.                                                 CONDITIONS PRECEDENT.

 

The obligation of each Lender to advance, continue or convert any Loan
(other than the continuation of, or conversion into, an Adjusted Base Rate
Loan) or of the L/C Issuer to issue, extend the expiration date (including by
not giving notice of non-renewal) of or increase the amount of any Letter of
Credit under this Agreement, shall be subject to the following conditions
precedent:

 

Section 7.1.                                          All
Credit Events.  At the time of each
Credit Event hereunder:

 

(a)                                  each
of the representations and warranties set forth herein and in the other Loan
Documents shall be and remain true and correct as of said time, except to the
extent the same expressly relate to an earlier date (in which case the same
shall be true and correct as of such earlier date);

 

(b)                                 the
Borrower and each Subsidiary shall be in compliance with all of the terms and
conditions hereof and of the other Loan Documents, and no Default or Event of
Default shall have occurred and be continuing or would occur as a result of
such Credit Event;

 

40

 

(c)                                  in
the case of a Borrowing the Administrative Agent shall have received the notice
required by Section 1.5 hereof and a Borrowing Base Certificate in the
form attached hereto as Exhibit E, in the case of the issuance of any
Letter of Credit the L/C Issuer shall have received a duly completed
Application for such Letter of Credit together with any fees called for by Section 2.1
hereof, and, in the case of an extension or increase in the amount of a Letter
of Credit, a written request therefor in a form acceptable to the
L/C Issuer together with fees called for by Section 2.1 hereof; and

 

(d)                                 such
Credit Event shall not violate any order, judgment or decree of any court or
other authority or any provision of law or regulation applicable to the
Administrative Agent, the L/C Issuer, or any Lender (including, without
limitation, Regulation U of the Board of Governors of the Federal Reserve
System) as then in effect.

 

Each request for a Borrowing hereunder and each request for the
issuance of, increase in the amount of, or extension of the expiration date of,
a Letter of Credit shall be deemed to be a representation and warranty by the
Borrower on the date on such Credit Event as to the facts specified in
subsections (a) through (c), both inclusive, of this Section.

 

Section 7.2.                                          Initial
Credit Event.  Before or concurrently
with the initial Credit Event:

 

(a)                                  the
Administrative Agent shall have received for each Lender this Agreement duly
executed by the Borrower and its Material Subsidiaries, as Guarantors, and the
Lenders;

 

(b)                                 the
Administrative Agent shall have received for each Lender such Lender’s duly
executed Notes of the Borrower dated the date hereof and otherwise in
compliance with the provisions of Section 1.10 hereof;

 

(c)                                  the
Administrative Agent shall have received for each Lender copies of the Borrower’s
and each Material Subsidiary’s articles of incorporation and bylaws (or
comparable organizational documents) and any amendments thereto, certified in
each instance by its Secretary or Assistant Secretary;

 

(d)                                 the
Administrative Agent shall have received for each Lender copies of resolutions
of the Borrower’s and each Material Subsidiary’s Board of Directors (or similar
governing body) authorizing the execution, delivery and performance of this
Agreement and the other Loan Documents to which it is a party and the
consummation of the transactions contemplated hereby and thereby, together with
specimen signatures of the persons authorized to execute such documents on the
Borrower’s and each Material Subsidiary’s behalf, all certified in each
instance by its Secretary or Assistant Secretary;

 

(e)                                  the
Administrative Agent shall have received for each Lender copies of the
certificates of good standing for the Borrower and each Material Subsidiary
from the office of the secretary of the state of its incorporation or
organization and of each state in which it is qualified to do business as a
foreign corporation or organization;

 

41

 

(f)                                    the
Administrative Agent shall have received for each Lender a list of the Borrower’s
Authorized Representatives;

 

(g)                                 the
Administrative Agent shall have received for itself and for the Lenders the
initial fees called for by Section 2.1 hereof;

 

(h)                                 each
Lender shall have received a Borrowing Base Certificate containing calculations
of the Borrowing Base as of March 31, 2008, and Schedule 1.1
(form of which is attached hereto) and a Compliance Certificate;

 

(i)                                     the
Administrative Agent shall have received for each Lender the favorable written
opinion of counsel (attached as Exhibit I hereto) to the Borrower and each
Material Subsidiary, in form and substance satisfactory to the Administrative
Agent; and

 

(j)                                     the
Administrative Agent shall have received for the account of the Lenders such
other agreements, instruments, documents, certificates, and opinions as the
Administrative Agent may reasonably request.

 

Section 7.3.                                          Eligible
Property Additions and Deletions to the Borrowing Base.  As of March 31, 2008, the Borrower
represents to the Required Lenders and the Administrative Agent that the
Initial Properties qualify as Eligible Properties and that the information
provided on Schedule 1.1 is true and correct.

 

Upon not less than 10 Business Days prior written notice from the
Borrower to the Administrative Agent, the Borrower can designate that a
Property be added (subject to the other requirements for a Property qualifying
as an Eligible Property) or deleted as an Eligible Property.  Such notice shall be accompanied by a
Borrowing Base Certificate setting forth the components of the Borrowing Base
as of the addition or deletion of the designated Property as an Eligible
Property, and (x) with respect to an addition, the certificate required
above and (y) with respect to a deletion, Borrower’s certification in such
detail as reasonably required by the Administrative Agent that such deletion
shall not (A) cause the Eligible Properties in the aggregate to violate
the Borrowing Base Requirements, (B) cause a Default, or (C) cause or
result in the Borrower failing to comply with any of the financial covenants
contained herein.  Each addition shall be
an Eligible Property in a minimum amount equal to $5,000,000 Borrowing Base
Value, or shall be comprised of more than one qualifying Eligible Properties
that in the aggregate have a minimum amount equal to $5,000,000 Borrowing Base
Value, and all such additions shall be subject to approval by the Required
Lenders.

 

Notwithstanding anything contained in this Agreement to the contrary,
the Required Lenders  in their
reasonable discretion may (a) at the
Borrower’s request, add a Property as an Eligible Property despite the failure
of such Property to otherwise qualify as an Eligible Property and (b) upon
five (5) Business Days’ prior written notice to the Borrower, designate
that a Property is no longer an Eligible Property upon their determination that
such Property ceases to meet the criteria set forth in the definition of
Eligible Property, provided
however, that if during

 

42

 

such five (5) Business Day Period the Borrower
can satisfy those requirements deemed unsatisfied by the Required Lenders, such
Property shall remain an Eligible Property.

 

Furthermore, if no
Default exists at the time of any deletion of a Property from qualifying as an
Eligible Property, any Material Subsidiary which owned such Property, but that
does not otherwise own any other Eligible Property, shall be released from its
obligations under its Guaranty.

 

SECTION 8.                                                 COVENANTS.

 

The Borrower agrees that, so long as any credit is available to or in
use by the Borrower hereunder, except to the extent compliance in any case or
cases is waived in writing pursuant to the terms of Section 13.13 hereof:

 

Section 8.1.                                          Maintenance
of Business.  (i) The Borrower
shall, and shall cause each Material Subsidiary to, preserve and maintain its
existence, except as otherwise provided in Section 8.10(c) hereof.  The Borrower shall, and shall cause each
Material Subsidiary to, preserve and keep in force and effect all licenses,
permits, franchises, approvals, patents, trademarks, trade names, trade styles,
copyrights, and other proprietary rights necessary to the proper conduct of its
business.

 

(ii)(a) the Common Stock of the Borrower shall at all times be
duly listed on the New York Stock Exchange, Inc., the American Stock
Exchange or the National Association of Securities Dealers Automated Quotation
and (b) the Borrower shall timely file all reports required to be filed by
it with the New York Stock Exchange, Inc., the American Stock Exchange or
the National Association of Securities Dealers Automated Quotation and the
Securities and Exchange Commission.

 

Section 8.2.                                          Maintenance
of Properties.  The Borrower and each
Material Subsidiary shall cause each of its tenants to, maintain, preserve, and
keep its Property in working order and condition (ordinary wear and tear
excepted) and to maintain the value of such Property in all material respects,
except to the extent that, in the reasonable business judgment of such Person,
any such Property is no longer necessary for the proper conduct of the business
of such Person.

 

Section 8.3.                                          Taxes
and Assessments.  The Borrower and
each Material Subsidiary shall cause its tenants to duly pay and discharge, all
taxes, rates, assessments, fees, and governmental charges upon or against it or
its Property, that individually or collectively would materially impair the
value of such Property, and in each case before the same become delinquent and
before penalties accrue thereon, unless and to the extent that the same are
being contested in good faith and by appropriate proceedings which prevent enforcement
of the matter under contest and adequate reserves are provided therefor.

 

Section 8.4.                                          Insurance.  The Borrower and each Material Subsidiary
shall maintain or cause its tenants to maintain insurance with responsible and
reputable insurance companies or associations in such amounts and covering such
risks as is usually carried by companies engaged in similar businesses and
owning similar Properties in the same general areas in which the Borrower or
such Subsidiary owns such Properties.

 

43

 

Section 8.5.                                          Financial
Reports.  The Borrower shall, and
shall cause each Subsidiary to, maintain a standard system of accounting in
accordance with GAAP and shall furnish to the Administrative Agent, each Lender
and each of their duly authorized representatives such information respecting
the business and financial condition of the Borrower and each Subsidiary as the
Administrative Agent or such Lender may reasonably request; and without any
request, shall furnish to the Administrative Agent and the Lenders the
following:

 

(a)                                  as
soon as available, and in any event within 50 days after the last day of
each Fiscal Quarter, a Borrowing Base Certificate showing the computation of
the Borrowing Base in reasonable detail as of the close of business on the last
day of such Fiscal Quarter, prepared by the Borrower and certified to by its
chief financial officer or another officer of the Borrower acceptable to the
Administrative Agent;

 

(b)                                 as
soon as available, and in any event within 45 days after the close of each
of the first three (3) Fiscal Quarters of each Fiscal Year of the Borrower
a copy of the consolidated balance sheet of the Borrower and its Subsidiaries
as of the last day of such Fiscal Quarter and the consolidated statements of
income, and cash flows of the Borrower and its Subsidiaries for the Fiscal
Quarter and for the fiscal year-to-date period then ended, each in reasonable
detail showing in comparative form the figures for the corresponding date and
period in the previous fiscal year, prepared by the Borrower in accordance with
GAAP and certified to by its chief financial officer or another officer of the
Borrower acceptable to the Administrative Agent (the delivery of the Borrower’s
Form 10-Q shall satisfy this requirement);

 

(c)                                  with
each of the financial statements furnished to the Lenders pursuant to
subsections (b) and (d) hereof,  a
written certificate (“Compliance Certificate”)
in the form attached hereto as Exhibit F signed by the chief financial
officer of the Borrower or another officer of the Borrower acceptable to the
Administrative Agent to the effect that to the best of such officer’s knowledge
and belief no Default or Event of Default has occurred during the period
covered by such statements or, if any such Default or Event of Default has
occurred during such period, setting forth a description of such Default or
Event of Default and specifying the action, if any, taken by the Borrower or
any Subsidiary to remedy the same.  Such
certificate shall also set forth the calculations supporting such statements in
respect of Section 8.21 hereof; and

 

(d)                                 as
soon as available, and in any event within 90 days after the close of each
fiscal year of the Borrower, a copy of the consolidated balance sheet of the
Borrower and its Subsidiaries as of the last day of the fiscal year then ended
and the consolidated statements of income, retained earnings, and cash flows of
the Borrower and its Subsidiaries for the fiscal year then ended, and
accompanying notes thereto, each in reasonable detail showing in comparative
form the figures for the previous fiscal year, accompanied in the case of the
consolidated financial statements by an unqualified opinion of Ernst &
Young, LLP or another firm of independent public accountants of

 

44

 

recognized national standing, selected by the Borrower
and reasonably satisfactory to the Administrative Agent and the Required
Lenders, to the effect that the consolidated financial statements have been
prepared in accordance with GAAP and present fairly in accordance with GAAP the
consolidated financial condition of the Borrower and its Subsidiaries as of the
close of such fiscal year and the results of their operations and cash flows
for the fiscal year then ended and that an examination of such accounts in
connection with such financial statements has been made in accordance with
generally accepted auditing standards and, accordingly, such examination
included such tests of the accounting records and such other auditing
procedures as were considered necessary in the circumstances (the delivery of
the Borrower’s Form 10-K shall satisfy this requirement);

 

(e)                                  promptly
after receipt thereof, any additional written reports, management letters or other
detailed information contained in writing concerning significant aspects of the
Borrower’s or any Subsidiary’s operations and financial affairs given to it by
its independent public accountants;

 

(f)                                    promptly
after the sending or filing thereof, copies of each financial statement,
report, notice or proxy statement sent by the Borrower or any Subsidiary to its
stockholders or other equity holders, and copies of each regular, periodic or
special report, registration statement or prospectus (including all Form 10-K,
Form 10-Q and Form 8-K reports) filed by the Borrower or any
Subsidiary with any securities exchange or the Securities and Exchange
Commission or any successor agency;

 

(g)                                 as
soon as available, and in any event within 90 days after  the end of each fiscal year of the Borrower,
a copy of the Borrower’s  consolidated
projections of revenues, expenses and balance sheet on a quarter-by-quarter
basis, with such projections in reasonable detail prepared by the Borrower and
in form satisfactory to the Administrative Agent  (which
shall include a summary of all significant assumptions made in preparing such
business plan);

 

(h)                                 notice
of any Change of Control;

 

(i)                                     promptly
after knowledge thereof shall have come to the attention of any responsible
officer of the Borrower, written notice of any threatened or pending litigation
or governmental or arbitration proceeding or labor controversy against the
Borrower or any Subsidiary which, if adversely determined, could reasonably be
expected to have a Material Adverse Effect or of the occurrence of any Default
or Event of Default hereunder;

 

(j)                                     within
45 days of the end of each of the first 3 Fiscal Quarters and within
90 days after the close of the last Fiscal Quarter of the year (i) a
list of all newly formed or acquired Subsidiaries during such quarter (such
list shall contain the information relative to such new Subsidiaries as set
forth in Schedule 6.2 hereto); (ii) a list of newly executed
Significant Leases or Qualified Ground Leases during such quarter (upon receipt
of which Schedule 1.1 and/or Schedule 6.26 shall be deemed amended to
include

 

45

 

references to such Significant Lease and/or Qualified
Ground Leases); (iii) a copy of any notice of a material default or any
other material notice (including without limitation property condition reviews)
received by the Borrower or any Guarantor from any ground lessor under a
Qualified Ground Lease or a Lease during such quarter and (iv) a schedule
showing for such quarter (a) any Significant Lease that was or is
continuing to be in default with respect to monthly minimum rent payments in
excess of 60 days, and (b) any other Leases that in the aggregate
generate more than $4,000,000 in annual contractual rents payable to the
Borrower or its Subsidiaries that were or are continuing to be in default for a
period in excess of 60 days on the monthly minimum rent payments due under
such Leases; and

 

(k)                                  promptly
after knowledge thereof shall have come to the attention of any responsible
officer of the Borrower, written notice to each Lender if a Lease of any
Property included in the Borrowing Base Value is more than thirty (30)
days past due.

 

Section 8.6.                                          Inspection.  The Borrower shall, and shall cause each
Subsidiary to, permit the Administrative Agent, each Lender, and each of their
duly authorized representatives and agents to visit and inspect any of its
Property, corporate books, and financial records, to examine and make copies of
its books of accounts and other financial records, and to discuss its affairs,
finances, and accounts with, and to be advised as to the same by, its officers,
employees and independent public accountants (and by this provision the
Borrower hereby authorizes such accountants to discuss with the Administrative
Agent and such Lenders the finances and affairs of the Borrower and its
Subsidiaries) at such reasonable times and intervals as the Administrative
Agent or any such Lender may designate and, so long as no Default or Event of
Default exists, with reasonable prior notice to the Borrower.

 

Section 8.7.                                          Office of Foreign Asset Control.  Neither Borrower nor any Guarantor is (or
will be) a person with whom a Lender is restricted from doing business under
regulations of the Office of Foreign Asset Control (“OFAC”)
of the Department of the Treasury of the United States of America (including,
those Persons named on OFAC’s Specially Designated and Blocked Persons list) or
under any statute, executive order (including, the September 24, 2001
Executive Order Blocking Property and Prohibiting Transactions With Persons Who
Commit, Threaten to Commit, or Support Terrorism), or other governmental action
and is not and shall not engage in any dealings or transactions or otherwise be
associated with such persons.  In
addition, Borrower hereby agrees to provide to any Lender with any additional
information that the Lender deems necessary from time to time in order to
ensure compliance with all applicable Laws concerning money laundering and
similar activities.

 

Section 8.8.                                          Liens.  The Borrower shall not, nor shall it permit
any Subsidiary to, create, incur or permit to exist any Lien of any kind on any
Property owned by any such Person; provided, however,
that the foregoing shall not apply to nor operate to prevent any Permitted
Liens.

 

Section 8.9.                                          Investments,
Acquisitions, Loans and Advances. 
The Borrower shall not, nor shall it permit any Subsidiary to, directly
or indirectly, make, retain or have outstanding any investments or acquire all
or any substantial part of the assets or business of any other Person or
division thereof; provided, however, that the
foregoing shall not apply to nor operate to prevent:

 

46

 

(a)                                  investments
in direct obligations of the United States of America or of any agency or
instrumentality thereof whose obligations constitute full faith and credit
obligations of the United States of America, provided that any such obligations
shall mature within one year of the date of issuance thereof;

 

(b)                                 investments
in commercial paper rated at least P-1 by Moody’s and at least A-1 by S&P
maturing within one year of the date of issuance thereof;

 

(c)                                  investments
in certificates of deposit issued by any Lender or by any United States
commercial bank having capital and surplus of not less than $100,000,000 which
have a maturity of one year or less;

 

(d)                                 investments
in repurchase obligations with a term of not more than 7 days for
underlying securities of the types described in subsection (a) above
entered into with any bank meeting the qualifications specified in
subsection (c) above, provided all such agreements require physical
delivery of the securities securing such repurchase agreement, except those
delivered through the Federal Reserve Book Entry System;

 

(e)                                  investments
in money market funds that invest solely, and which are restricted by their
respective charters to invest solely, in investments of the type described in
the immediately preceding subsections (a), (b), (c), and (d) above;

 

(f)                                    the
Borrower’s investments from time to time in its Subsidiaries, and investments
made from time to time by a Subsidiary in one or more of its Subsidiaries;

 

(g)                                 intercompany
advances made from time to time among the Borrower and its Subsidiaries in the
ordinary course of business to finance working capital needs;

 

(h)                                 investments
in Permitted Acquisitions;

 

(i)                                     investments
held by the Borrower and its Subsidiaries as of the date of this Agreement;

 

(j)                                     investments
in Medical Office Buildings in an amount not to exceed $50,000,000 in the
aggregate at any one time outstanding;

 

(k)                                  investments
in real properties that are not Senior Housing Assets and are not otherwise
permitted under this Section 8.9 in an amount not to exceed $10,000,000 in
the aggregate at any one time outstanding;

 

(l)                                     investments
in joint ventures in an amount not to exceed $30,000,000 in the aggregate at
any one time outstanding excluding investments in joint ventures existing prior
to the date of this Agreement;

 

47

 

(m)                               Assets
Under Development in an amount not to exceed $30,000,000 in the aggregate at
any one time outstanding excluding Assets Under Development existing prior to
the date of this Agreement;

 

(n)                                 investments
in Rehabilitation Assets, in an amount not to exceed $50,000,000 in the
aggregate at any one time outstanding, excluding Rehabilitation Assets existing
prior to the date of this Agreement;

 

(o)                                 investments
in REMIC’s pertaining to issues for which the Borrower is both the issuer and
the servicer in an amount not to exceed $10,000,000 in the aggregate at any one
time outstanding excluding investments in REMIC’s of the Borrower existing
prior to the date of this Agreement;

 

(p)                                 investments
in publicly traded debt or equity instruments issued by companies engaged in
the healthcare industry in an amount not to exceed $30,000,000 in addition to
investments in publicly traded debt or equity instruments held by the Borrower
prior to the date of this Agreement; and

 

(q)                                 investments
received in connection with a workout of any obligation owed to Borrower or its
Subsidiaries.

 

Investments
of the type described in Sections (j), (k), (l), (m), (n), (o), (p) and
(q) immediately preceding shall at no time exceed $80,000,000 in the
aggregate at any one time outstanding. 
In determining the amount of investments, acquisitions, loans, and
advances permitted under this Section, investments and acquisitions shall
always be taken at the original cost thereof (regardless of any subsequent
appreciation or depreciation therein), and loans and advances shall be taken at
the principal amount thereof then remaining unpaid.

 

Section 8.10.                                   Mergers,
Consolidations and Sales.  The
Borrower will not merge or consolidate with or into, or convey, transfer, lease
or otherwise dispose of (whether in one transaction or a series of
transactions) any of its Property (whether now owned or hereafter acquired) to,
or acquire all or substantially all of the assets of, any Person, or permit any
Subsidiary to do so; provided, however, that the Borrower may merge or
consolidate with another Person, including a Subsidiary, if (A) the
Borrower is the surviving corporation, (B) the Borrower will be in pro forma compliance with all provisions of this
Agreement upon and after such merger or consolidation and (C) the Borrower
will not engage in any material line of business substantially different from
that engaged in on the Closing Date and; further  provided, however, that so long as no Default or Event of
Default exists this Section shall not apply to nor operate to prevent:

 

(a)                                  the
sale, transfer, lease or other disposition of Property of the Borrower and its
Subsidiaries to one another in the ordinary course of its business;

 

(b)                                 the
merger of any Subsidiary with and into the Borrower or any other Subsidiary,
provided that, in the case of any merger involving the Borrower, the Borrower
is the corporation surviving the merger;

 

48

 

(c)                                  the
sale, transfer or other disposition of any tangible personal property that, in
the reasonable business judgment of the Borrower or its Subsidiary, has become
obsolete or worn out, and which is disposed of in the ordinary course of
business; and

 

(d)                                 the
sale, transfer, lease or other disposition of Property of the Borrower or any
Subsidiary (including any disposition of Property as part of a sale and
leaseback transaction) aggregating for the Borrower and its Subsidiaries not
more than $100,000,000 during any fiscal year of the Borrower; further provided however, that if such disposition during
such Fiscal Quarter exceeds $5,000,000 and together with any other dispositions
made during the preceding three Fiscal Quarters of the Borrower in the aggregate
exceed $50,000,000, then for such disposition(s) the Borrower shall
provide to the Administrative Agent covenant calculations for the covenants
contained in Section 8.21, showing that the projected effect of such
disposition(s) have been contemplated and have been projected into the
expected operating results and financial position of the Borrower for the
Fiscal Quarter in which the disposition occurs, and demonstrating that such
disposition(s) are not reasonably expected to cause a violation of the Section 8.21
covenants applicable to the Fiscal Quarter.

 

Section 8.11.                                   Maintenance
of Material Subsidiaries.  The
Borrower shall not assign, sell or transfer, nor shall it permit any Material
Subsidiary to issue, assign, sell or transfer, any shares of capital stock or
other equity interests of a Material Subsidiary; provided,
however, that the foregoing shall not operate to prevent (a) Liens
on the capital stock or other equity interests of Material Subsidiaries granted
to the Administrative Agent, (b) the issuance, sale, and transfer to any
person of any shares of capital stock of a Material Subsidiary solely for the
purpose of qualifying, and to the extent legally necessary to qualify, such
person as a director of such Material Subsidiary, and (c) any transaction
permitted by Section 8.10(b) above.

 

Section 8.12.                                   Intentionally
Omitted.

 

Section 8.13.                                   ERISA.  The Borrower shall, and shall cause each
Subsidiary to, promptly pay and discharge all obligations and liabilities
arising under ERISA of a character which if unpaid or unperformed could
reasonably be expected to result in the imposition of a Lien against any of its
Property.  The Borrower shall, and shall
cause each Subsidiary to, promptly notify the Administrative Agent and each
Lender of:  (a) the occurrence of
any reportable event (as defined in ERISA) with respect to a Plan, (b) receipt
of any notice from the PBGC of its intention to seek termination of any Plan or
appointment of a trustee therefor, (c) its intention to terminate or
withdraw from any Plan, and (d) the occurrence of any event with respect
to any Plan which would result in the incurrence by the Borrower or any
Subsidiary of any material liability, fine or penalty, or any material increase
in the contingent liability of the Borrower or any Subsidiary with respect to
any post-retirement Welfare Plan benefit.

 

Section 8.14.                                   Compliance
with Laws.  (a) The Borrower
shall, and shall cause each Subsidiary to, comply in all respects with the
requirements of all federal, state, and local laws, rules, regulations,
ordinances and orders applicable to or pertaining to its Property or business
operations, where any such non-compliance, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect or result in a
Lien upon any of its Property.

 

49

 

(b)                                 Without
limiting the agreements set forth in Section 8.14(a) above, for each
of its owned Properties, respectively, the Borrower shall, and shall cause each
Subsidiary to require that each tenant and subtenant, if any, of any of the
Properties or any part thereof, at all times, do the following to the extent
the failure to do so, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect: (i) comply in all material
respects with all applicable Environmental Laws; (ii) obtain and maintain
in full force and effect all material governmental approvals required by any
applicable Environmental Law for operations at each of the Properties and (iii) cause
to be cured any material violation by it or at any of the Properties of
applicable Environmental Laws.

 

Section 8.15.                                   Burdensome
Contracts With Affiliates.  The
Borrower shall not, nor shall it permit any Subsidiary to, enter into any
contract, agreement or business arrangement with any of its Affiliates (other
than with Wholly-owned Subsidiaries) on terms and conditions which are less
favorable to the Borrower or such Subsidiary than would be usual and customary
in similar contracts, agreements or business arrangements between Persons not
affiliated with each other.

 

Section 8.16.                                   No
Changes in Fiscal Year.  The fiscal
year of the Borrower and its Subsidiaries ends on December 31st of each
year; and the Borrower shall not, nor shall it permit any Subsidiary to, change
its fiscal year from its present basis.

 

Section 8.17.                                   Intentionally
Omitted.

 

Section 8.18.                                   Change
in the Nature of Business.  The
Borrower shall not, nor shall it permit any Subsidiary to, engage in any
business or activity if as a result the general nature of the business of the
Borrower and its Subsidiaries would be changed in any material respect from the
general nature of the business engaged in by it as of the Closing Date.  As of the Closing Date, the general nature of
the business of the Borrower and its Subsidiaries is primarily the business of
the acquisition, financing and ownership of Senior Housing Assets and other
business activities incidental thereto.

 

Section 8.19.                                   Use
of Loan Proceeds.  The Borrower shall
use the credit extended under this Agreement solely for the purposes set forth
in, or otherwise permitted by, Section 6.4 hereof.

 

Section 8.20.                                   No
Restrictions.  Except as provided
herein, the Borrower shall not, nor shall it permit any Subsidiary (except for
bankruptcy remote subsidiaries established in connection with (i) any
securitization or participation transaction or with any Permitted Lien or (ii) any
ownership of fee simple real estate Properties not exceeding $200,000,000
individually or in the aggregate) to, directly or indirectly create or
otherwise cause or suffer to exist or become effective any consensual
encumbrance or restriction of any kind on the ability of the Borrower or any Subsidiary
to:  (a) pay dividends or make any
other distributions on any Subsidiary’s capital stock or other equity interests
owned by the Borrower or any other Subsidiary, (b) pay any indebtedness
owed to the Borrower or any other Subsidiary, (c) make loans or advances
to the Borrower or any other Subsidiary, (d) transfer any of its Property
to the Borrower or any other Subsidiary provided however,
that the foregoing does not impose any limitation on transfers of property that
is subject to a Permitted Lien or (e) guarantee the Obligations and/or
grant Liens on its assets to the Administrative Agent as required by the Loan
Documents.

 

50

 

Section 8.21.                                   Financial
Covenants.  (a) Maximum Total Indebtedness to Total Asset Value Ratio.  As of the last day of each Fiscal Quarter of
the Borrower, the Borrower shall not permit the ratio of Total Indebtedness to
Total Asset Value to be greater than .50 to 1.0.

 

(b)                                 Maximum Secured Debt to Total Asset Value Ratio.  As of the last day of each Fiscal Quarter of
the Borrower, the Borrower shall not permit the ratio of Secured Debt to Total
Asset Value to be greater than .35 to 1.0

 

(c)                                  Minimum EBITDA to Interest Expense Ratio.  As of the last day of each Rolling Period of
the Borrower, the Borrower shall not permit the ratio of EBITDA to Interest Expense
to be less than 2.50 to 1.0.

 

(d)                                 Minimum EBITDA to Fixed Charges Ratio.  As of the last day of each Rolling Period of
the Borrower, the Borrower shall not permit the ratio of EBITDA to Fixed
Charges to be less than 1.50 to 1.0.

 

(e)                                  Maximum Secured Recourse Debt to Total Asset Value Ratio.  As of the last day of each Rolling Period of
the Borrower, the Borrower shall not permit the ratio of Secured Recourse Debt
to Total Asset Value to be greater than .10 to 1.00.

 

(f)                                    Maintenance of Net Worth. 
The Borrower shall at all times maintain a Tangible Net Worth of not
less than the sum of (a) $400,000,000 plus (b) 85%
of the aggregate net proceeds received by the Borrower or any of its
Subsidiaries after the Closing Date in connection with any offering of Stock or
Stock Equivalents of the Borrower or the Subsidiaries that results in an
increase of Tangible Net Worth.

 

(g)                                 Floating Rate Debt. 
On any date, the Borrower and its Subsidiaries shall not, on a
consolidated basis, have outstanding floating rate debt that is neither at a
fixed rate or hedged pursuant to a derivative contract greater than 40% of
Total Asset Value.

 

Section 8.22.                                   Borrowing
Base Covenants.  (a) The
Borrower shall cause the Eligible Properties in the Borrowing Base to at all
times comply with the Borrowing Base Requirements; provided that if the
requirements of clauses (a), (b), (c) or (d) of the definition of
Borrowing Base Requirements are not met, then within 2 Business Days of notice
of such failure either (i) the Borrower shall have cured such failure or (ii) for
Borrowing Base purposes the Borrower shall have lowered the Borrowing Base
Value of those Eligible Properties that contributed to such failure to the
point that such failure no longer exists.

 

(b)                                 Minimum Borrowing Base Value.  The Borrower shall at all times maintain a
Borrowing Base Value of not less than $50,000,000.

 

(c)                                  Minimum Eligible Property NOI to Credit Facility Debt Service Ratio.  As of the last day of each Fiscal Quarter  of the Borrower, the Borrower shall not permit the ratio of
Eligible Property NOI to the sum of (i) Unsecured Debt Service with
respect to indebtedness that is pari passu in rank to the indebtedness under
the Credit Agreement, plus (ii) Credit Facility Debt Service, to be less
than 2.25 to 1.0.

 

51

 

SECTION 9.                                                 EVENTS OF DEFAULT AND REMEDIES.

 

Section 9.1.                                          Events of Default. 
Any one or more of the following shall constitute an “Event of Default” hereunder:

 

(a)                                  default
in the payment when due of all or any part of the principal on any Note
(whether at the stated maturity thereof or at any other time provided for in
this Agreement) or of any Reimbursement Obligation payable hereunder or under
any other Loan Document;

 

(b)                                 default
within three (3) Business Days of when due in the payment of all or any
part of the interest on any Note (whether at the stated maturity thereof or at
any other time provided for in this Agreement) or of any fee or other
Obligation payable hereunder or under any other Loan Document;

 

(c)                                  default
in the observance or performance of any covenant set forth in
Sections 8.1, 8.8, 8.9, 8.10, 8.11, 8.21 or 8.22 hereof;

 

(d)                                 default
in the observance or performance of any other provision hereof or of any other
Loan Document which is not remedied within 30 days after the earlier of (i) the
date on which such failure shall first become known to any officer of the
Borrower or (ii) written notice thereof is given to the Borrower by the
Administrative Agent;

 

(e)                                  any
representation or warranty made herein or in any other Loan Document or in any
certificate furnished to the Administrative Agent or the Lenders pursuant
hereto or thereto or in connection with any transaction contemplated hereby or
thereby proves untrue in any material respect as of the date of the issuance or
making or deemed making thereof;

 

(f)                                    any
event occurs or condition exists (other than those described in
subsections (a) through (e) above) which is specified as an
event of default under any of the other Loan Documents, or any of the Loan
Documents shall for any reason not be or shall cease to be in full force and
effect or is declared to be null and void;

 

(g)                                 default
shall occur under any Indebtedness for Borrowed Money issued, assumed or
guaranteed by the Borrower or any Subsidiary aggregating in excess of
$10,000,000 or under any indenture, agreement or other instrument under which
the same may be issued, and such default shall continue for a period of time
sufficient to permit the acceleration of the maturity of any such Indebtedness
for Borrowed Money (whether or not such maturity is in fact accelerated), or
any such Indebtedness for Borrowed Money shall not be paid when due (whether by
demand, lapse of time, acceleration or otherwise);

 

(h)                                 any
judgment or judgments, writ or writs or warrant or warrants of attachment, or
any similar process or processes, shall be entered or filed against the
Borrower or any Subsidiary, or against any of its Property, in an aggregate
amount in excess of $10,000,000 (except to the extent fully covered by
insurance pursuant to which the insurer has accepted liability therefor in
writing), and which remains undischarged, unvacated, unbonded or unstayed for a
period of 30 days;

 

52

 

(i)                                     the
Borrower or any Subsidiary, or any member of its Controlled Group, shall fail
to pay when due an amount or amounts aggregating in excess of $10,000,000 which
it shall have become liable to pay to the PBGC or to a Plan under Title IV
of ERISA; or notice of intent to terminate a Plan or Plans having aggregate
Unfunded Vested Liabilities in excess of $10,000,000 (collectively, a “Material Plan”) shall be filed under Title IV of ERISA
by the Borrower or any Subsidiary, or any other member of its Controlled Group,
any plan administrator or any combination of the foregoing; or the PBGC shall
institute proceedings under Title IV of ERISA to terminate or to cause a
trustee to be appointed to administer any Material Plan or a proceeding shall
be instituted by a fiduciary of any Material Plan against the Borrower or any
Subsidiary, or any member of its Controlled Group, to enforce Section 515
or 4219(c)(5) of ERISA and such proceeding shall not have been dismissed
within 30 days thereafter; or a condition shall exist by reason of which the
PBGC would be entitled to obtain a decree adjudicating that any Material Plan
must be terminated;

 

(j)                                     any
Change of Control shall occur;

 

(k)                                  the
Borrower or any Material Subsidiary shall (i) have entered involuntarily
against it an order for relief under the United States Bankruptcy Code, as
amended, (ii) not pay, or admit in writing its inability to pay, its debts
generally as they become due, (iii) make an assignment for the benefit of
creditors, (iv) apply for, seek, consent to or acquiesce in, the
appointment of a receiver, custodian, trustee, examiner, liquidator or similar
official for it or any substantial part of its Property, (v) institute any
proceeding seeking to have entered against it an order for relief under the
United States Bankruptcy Code, as amended, to adjudicate it insolvent, or
seeking dissolution, winding up, liquidation, reorganization, arrangement,
adjustment or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors or fail to file
an answer or other pleading denying the material allegations of any such
proceeding filed against it, (vi) take any corporate action in furtherance
of any matter described in parts (i) through (v) above, or (vii) fail
to contest in good faith any appointment or proceeding described in Section 9.1(l) hereof;

 

(l)                                     a
custodian, receiver, trustee, examiner, liquidator or similar official shall be
appointed for the Borrower or any Subsidiary, or any substantial part of any of
its Property, or a proceeding described in Section 9.1(k)(v) shall be
instituted against the Borrower or any Subsidiary, and such appointment
continues undischarged or such proceeding continues undismissed or unstayed for
a period of 60 days;

 

(m)                               default
or event of default has occurred under any Qualified Ground Lease;

 

(n)                                 there
shall be a determination from the applicable Governmental Authority from which
no appeal can be taken that the Borrower’s tax status as a REIT has been lost;
or

 

53

 

(o)                                 the
Borrower at any time hereafter fails to cause the Common Stock of the Borrower
to be duly listed on the New York Stock Exchange, Inc., the American Stock
Exchange or the National Association of Securities Dealers Automated Quotation.

 

Section 9.2.                                          Non-Bankruptcy Defaults. 
When any Event of Default other than those described in subsection (k) or
(l) of Section 9.1 hereof has occurred and is continuing, the
Administrative Agent shall, by written notice to the Borrower: (a) if so
directed by the Required Lenders, terminate the remaining Commitments and all
other obligations of the Lenders hereunder on the date stated in such notice
(which may be the date thereof); (b) if so directed by the Required
Lenders declare the principal of and the accrued interest on all outstanding
Notes to be forthwith due and payable and thereupon all outstanding Notes,
including both principal and interest thereon, shall be and become immediately
due and payable together with all other amounts payable under the Loan
Documents without further demand, presentment, protest or notice of any kind;
and (c) if so directed by the Required Lenders, demand that the Borrower
immediately pay to the Administrative Agent the full amount then available for drawing
under each or any Letter of Credit, and the Borrower agrees to immediately make
such payment and acknowledges and agrees that the Lenders would not have an
adequate remedy at law for failure by the Borrower to honor any such demand and
that the Administrative Agent, for the benefit of the Lenders, shall have the
right to require the Borrower to specifically perform such undertaking whether
or not any drawings or other demands for payment have been made under any
Letter of Credit.  The Administrative
Agent, after giving notice to the Borrower pursuant to Section 9.1(d) or
this Section 9.2, shall also promptly send a copy of such notice to the
other Lenders, but the failure to do so shall not impair or annul the effect of
such notice.

 

Section 9.3.                                          Bankruptcy
Defaults.  When any Event of Default
described in subsections (k) or (l) of Section 9.1 hereof
has occurred and is continuing, then all outstanding Notes shall immediately
become due and payable together with all other amounts payable under the Loan
Documents without presentment, demand, protest or notice of any kind, the
obligation of the Lenders to extend further credit pursuant to any of the terms
hereof shall immediately terminate and the Borrower shall immediately pay to
the Administrative Agent the full amount then available for drawing under all
outstanding Letters of Credit, the Borrower acknowledging and agreeing that the
Lenders would not have an adequate remedy at law for failure by the Borrower to
honor any such demand and that the Lenders, and the Administrative Agent on
their behalf, shall have the right to require the Borrower to specifically
perform such undertaking whether or not any draws or other demands for payment
have been made under any of the Letters of Credit.

 

Section 9.4.                                          Collateral
for Undrawn Letters of Credit.  (a) If
the prepayment of the amount available for drawing under any or all outstanding
Letters of Credit is required under Section 1.8(b) or under Section 9.2
or 9.3 above, the Borrower shall forthwith pay the amount required to be so
prepaid, to be held by the Administrative Agent as provided in subsection (b) below.

 

(b)                                 All
amounts prepaid pursuant to subsection (a) above shall be held by the
Administrative Agent in one or more separate collateral accounts (each such
account, and the credit balances, properties, and any investments from time to
time held therein, and any

 

54

 

substitutions for such account, any certificate of
deposit or other instrument evidencing any of the foregoing and all proceeds of
and earnings on any of the foregoing being collectively called the “Collateral Account”) as security for, and for application
by the Administrative Agent (to the extent available) to, the reimbursement of
any payment under any Letter of Credit then or thereafter made by the
Administrative Agent, and to the payment of the unpaid balance of any other
Obligations.  The Collateral Account
shall be held in the name of and subject to the exclusive dominion and control
of the Administrative Agent for the benefit of the Administrative Agent, the
Lenders, and the L/C Issuer.  If and when
requested by the Borrower, the Administrative Agent shall invest funds held in
the Collateral Account from time to time in direct obligations of, or
obligations the principal of and interest on which are unconditionally
guaranteed by, the United States of America with a remaining maturity of one
year or less, provided that the Administrative
Agent is irrevocably authorized to sell investments held in the Collateral
Account when and as required to make payments out of the Collateral Account for
application to amounts due and owing from the Borrower to the L/C Issuer, the
Administrative Agent or the Lenders; provided, however,
that if (i) the Borrower shall have made payment of all such obligations
referred to in subsection (a) above and (ii) no Letters of
Credit, Commitments, Loans or other Obligations remain outstanding hereunder,
then the Administrative Agent shall release to the Borrower any remaining
amounts held in the Collateral Account.

 

Section 9.5.                                          Notice
of Default.  The Administrative Agent
shall give notice to the Borrower under Section 9.1(d) hereof
promptly upon being requested to do so by any Lender and shall thereupon notify
all the Lenders thereof.

 

Section 9.6.                                          Expenses.  The Borrower agrees to pay to the
Administrative Agent and each Lender, and any other holder of any Note
outstanding hereunder, all costs and expenses reasonably incurred or paid by
the Administrative Agent and such Lender or any such holder, including
reasonable attorneys’ fees and court costs, in connection with any Default or
Event of Default hereunder or in connection with the enforcement of any of the
Loan Documents (including all such costs and expenses incurred in connection
with any proceeding under the United States Bankruptcy Code involving the
Borrower or any Subsidiary as a debtor thereunder).

 

SECTION 10.                                           CHANGE IN CIRCUMSTANCES.

 

Section 10.1.                                   Change
of Law.  Notwithstanding any other
provisions of this Agreement or any Note, if at any time any change in
applicable law or regulation or in the interpretation thereof makes it unlawful
for any Lender to make or continue to maintain any Eurodollar Loans or to
perform its obligations as contemplated hereby, such Lender shall promptly give
notice thereof to the Borrower and such Lender’s obligations to make or
maintain Eurodollar Loans under this Agreement shall be suspended until it is
no longer unlawful for such Lender to make or maintain Eurodollar Loans.  The Borrower shall prepay on demand the
outstanding principal amount of any such affected Eurodollar Loans, together
with all interest accrued thereon and all other amounts then due and payable to
such Lender under this Agreement; provided, however,
subject to all of the terms and conditions of this Agreement, the Borrower may
then elect to borrow the principal amount of the affected Eurodollar Loans from
such Lender by means of Adjusted Base Rate Loans from such Lender, which
Adjusted Base Rate Loans shall not be made ratably by the Lenders but only from
such affected Lender.

 

55

 

Section 10.2.                                   Unavailability
of Deposits or Inability to Ascertain, or Inadequacy of, LIBOR.  If on or prior to the first day of any
Interest Period for any Borrowing of Eurodollar Loans:

 

(a)                                  the
Administrative Agent determines that deposits in U.S. Dollars (in the
applicable amounts) are not being offered to it in the interbank eurodollar
market for such Interest Period, or that by reason of circumstances affecting
the interbank eurodollar market adequate and reasonable means do not exist for
ascertaining the applicable LIBOR, or

 

(b)                                 the
Required Lenders advise the Administrative Agent that (i) LIBOR as
determined by the Administrative Agent will not adequately and fairly reflect
the cost to such Lenders of funding their Eurodollar Loans for such Interest
Period or (ii) that the making or funding of Eurodollar Loans become
impracticable,

 

then
the Administrative Agent shall forthwith give notice thereof to the Borrower
and the Lenders, whereupon until the Administrative Agent notifies the Borrower
that the circumstances giving rise to such suspension no longer exist, the
obligations of the Lenders to make Eurodollar Loans shall be suspended.

 

Section 10.3.                                   Increased
Cost and Reduced Return.  (a) If,
on or after the date hereof, the adoption of any applicable law, rule or
regulation, or any change therein, or any change in the interpretation or
administration thereof by any governmental authority, central bank or
comparable agency charged with the interpretation or administration thereof, or
compliance by any Lender (or its Lending Office) with any request or directive
(whether or not having the force of law) of any such authority, central bank or
comparable agency:

 

(i)                                     shall
subject any Lender (or its Lending Office) to any tax, duty or other charge
with respect to its Eurodollar Loans, its Notes, its Letter(s) of Credit,
or its participation in any thereof, any Reimbursement Obligations owed to it
or its obligation to make Eurodollar Loans, issue a Letter of Credit, or to
participate therein, or shall change the basis of taxation of payments to any
Lender (or its Lending Office) of the principal of or interest on its
Eurodollar Loans, Letter(s) of Credit, or participations therein or any
other amounts due under this Agreement or any other Loan Document in respect of
its Eurodollar Loans, Letter(s) of Credit, any participation therein, any
Reimbursement Obligations owed to it, or its obligation to make Eurodollar
Loans, or issue a Letter of Credit, or acquire participations therein (except
for changes in the rate of tax on the overall net income of such Lender or its
Lending Office imposed by the jurisdiction in which such Lender’s principal
executive office or Lending Office is located); or

 

(ii)                                  shall
impose, modify or deem applicable any reserve, special deposit or similar
requirement (including, without limitation, any such requirement imposed by the

 

56

 

Board of Governors of the Federal Reserve System, but
excluding with respect to any Eurodollar Loans any such requirement included in
an applicable Eurodollar Reserve Percentage) against assets of, deposits with
or for the account of, or credit extended by, any Lender (or its Lending
Office) or shall impose on any Lender (or its Lending Office) or on the interbank
market any other condition affecting its Eurodollar Loans, its Notes, its
Letter(s) of Credit, or its participation in any thereof, any
Reimbursement Obligation owed to it, or its obligation to make Eurodollar
Loans, or to issue a Letter of Credit, or to participate therein;

 

and
the result of any of the foregoing is to increase the cost to such Lender (or
its Lending Office) of making or maintaining any Eurodollar Loan, issuing or
maintaining a Letter of Credit, or participating therein, or to reduce the
amount of any sum received or receivable by such Lender (or its Lending Office)
under this Agreement or under any other Loan Document with respect thereto, by
an amount deemed by such Lender to be material, then, within 15 days after
demand by such Lender (with a copy to the Administrative Agent), the Borrower
shall be obligated to pay to such Lender such additional amount or amounts as
will compensate such Lender for such increased cost or reduction.

 

(b)                                 If,
after the date hereof, any Lender or the Administrative Agent shall have
determined that the adoption of any applicable law, rule or regulation
regarding capital adequacy, or any change therein, or any change in the
interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any Lender (or its Lending Office) or any corporation
controlling such 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 had the effect of reducing the rate of
return on such Lender’s or such corporation’s capital as a consequence of its
obligations hereunder to a level below that which such Lender or such
corporation could have achieved but for such adoption, change or compliance
(taking into consideration such Lender’s or such corporation’s policies with
respect to capital adequacy) by an amount deemed by such Lender to be material,
then from time to time, within 15 days after demand by such Lender (with a
copy to the Administrative Agent), the Borrower shall pay to such Lender such
additional amount or amounts as will compensate such Lender for such reduction.

 

(c)                                  A
certificate of a Lender claiming compensation under this Section 10.3 and
setting forth the additional amount or amounts to be paid to it hereunder shall
be conclusive if reasonably determined. 
In determining such amount, such Lender may use any reasonable averaging
and attribution methods.

 

Section 10.4.                                   Lending
Offices.  Each Lender may, at its
option, elect to make its Loans hereunder at the branch, office or affiliate
specified on the appropriate signature page hereof (each a “Lending Office”) for each type of Loan available hereunder
or at such other of its branches, offices or affiliates as it may from time to
time elect and designate in a written notice to the Borrower and the
Administrative Agent.  To the extent
reasonably possible, a Lender shall designate an alternative branch or funding
office with respect to its Eurodollar Loans to reduce any liability of the
Borrower to such Lender under Section 10.3 hereof or to avoid the
unavailability of Eurodollar Loans under Section 10.2 hereof, so long as
such designation is not otherwise disadvantageous to the Lender.

 

57

 

Section 10.5.                                   Discretion
of Lender as to Manner of Funding. 
Notwithstanding any other provision of this Agreement, each Lender shall
be entitled to fund and maintain its funding of all or any part of its Loans in
any manner it sees fit, it being understood, however, that for the purposes of
this Agreement all determinations hereunder with respect to Eurodollar Loans
shall be made as if each Lender had actually funded and maintained each
Eurodollar Loan through the purchase of deposits in the interbank eurodollar
market having a maturity corresponding to such Loan’s Interest Period, and
bearing an interest rate equal to LIBOR for such Interest Period.

 

SECTION 11.                                           THE ADMINISTRATIVE AGENT.

 

Section 11.1.                                   Appointment
and Authorization of Administrative Agent. 
Each Lender hereby appoints Bank of Montreal, Chicago Branch, as the
Administrative Agent under the Loan Documents and hereby authorizes the
Administrative Agent to take such action as Administrative Agent on its behalf
and to exercise such powers under the Loan Documents as are delegated to the
Administrative Agent by the terms thereof, together with such powers as are
reasonably incidental thereto.  The
Lenders expressly agree that the Administrative Agent is not acting as a
fiduciary of the Lenders in respect of the Loan Documents, the Borrower or
otherwise, and nothing herein or in any of the other Loan Documents shall
result in any duties or obligations on the Administrative Agent or any of the
Lenders except as expressly set forth herein.

 

Section 11.2.                                   Administrative
Agent and its Affiliates.  The
Administrative Agent shall have the same rights and powers under this Agreement
and the other Loan Documents as any other Lender and may exercise or refrain
from exercising such rights and power as though it were not the Administrative
Agent, and the Administrative Agent and its affiliates may accept deposits
from, lend money to, and generally engage in any kind of business with the
Borrower or any Affiliate of the Borrower as if it were not the Administrative
Agent under the Loan Documents.  The term
“Lender” as used herein and in all other
Loan Documents, unless the context otherwise clearly requires, includes the Administrative
Agent in its individual capacity as a Lender. 
References in Section 1 hereof to the Administrative Agent’s Loans,
or to the amount owing to the Administrative Agent for which an interest rate
is being determined, refer to the Administrative Agent in its individual
capacity as a Lender.

 

Section 11.3.                                   Action
by Administrative Agent.  If the
Administrative Agent receives from the Borrower a written notice of an Event of
Default pursuant to Section 8.5 hereof, the Administrative Agent shall promptly
give each of the Lenders written notice thereof.  The obligations of the Administrative Agent
under the Loan Documents are only those expressly set forth therein.  Without limiting the generality of the
foregoing, the Administrative Agent shall not be required to take any action
hereunder with respect to any Default or Event of Default, except as expressly
provided in Sections 9.2 and 9.5. 
Unless and until the Required Lenders give such direction, the Administrative
Agent may (but shall not be obligated to) take or refrain from taking such
actions as it deems appropriate and in the best interest of all the
Lenders.  In no event, however, shall the
Administrative Agent be required to take any action in violation of applicable
law or of any provision of any Loan Document, and the Administrative Agent
shall in

 

58

 

all cases be fully
justified in failing or refusing to act hereunder or under any other Loan
Document unless it first receives any further assurances of its indemnification
from the Lenders that it may require, including prepayment of any related
expenses and any other protection it requires against any and all costs,
expense, and liability which may be incurred by it by reason of taking or continuing
to take any such action.  The
Administrative Agent shall be entitled to assume that no Default or Event of
Default exists unless notified in writing to the contrary by a Lender or the
Borrower.  In all cases in which the Loan
Documents do not require the Administrative Agent to take specific action, the
Administrative Agent shall be fully justified in using its discretion in
failing to take or in taking any action thereunder.  Any instructions of the Required Lenders, or
of any other group of Lenders called for under the specific provisions of the
Loan Documents, shall be binding upon all the Lenders and the holders of the
Obligations.

 

Section 11.4.                                   Consultation
with Experts.  The Administrative
Agent may consult with legal counsel, independent public accountants, and other
experts selected by it and shall not be liable for any action taken or omitted
to be taken by it in good faith in accordance with the advice of such counsel,
accountants or experts.

 

Section 11.5.                                   Liability
of Administrative Agent; Credit Decision. 
Neither the Administrative Agent nor any of its directors, officers,
agents or employees shall be liable for any action taken or not taken by it in
connection with the Loan Documents:  (i) with
the consent or at the request of the Required Lenders or (ii) in the absence
of its own gross negligence or willful misconduct.  Neither the Administrative Agent nor any of
its directors, officers, agents or employees shall be responsible for or have
any duty to ascertain, inquire into or verify: 
(i) any statement, warranty or representation made in connection
with this Agreement, any other Loan Document or any Credit Event; (ii) the
performance or observance of any of the covenants or agreements of the Borrower
or any Subsidiary contained herein or in any other Loan Document; (iii) the
satisfaction of any condition specified in Section 7 hereof, except
receipt of items required to be delivered to the Administrative Agent; or (iv) the
validity, effectiveness, genuineness, enforceability, perfection, value, worth
or collectibility hereof or of any other Loan Document or of any other
documents or writing furnished in connection with any Loan Document; and the
Administrative Agent makes no representation of any kind or character with
respect to any such matter mentioned in this sentence.  The Administrative Agent may execute any of
its duties under any of the Loan Documents by or through employees, agents, and
attorneys-in-fact and shall not be answerable to the Lenders, the Borrower, or
any other Person for the default or misconduct of any such agents or
attorneys-in-fact selected with reasonable care.  The Administrative Agent shall not incur any
liability by acting in reliance upon any notice, consent, certificate, other
document or statement (whether written or oral) believed by it to be genuine or
to be sent by the proper party or parties. 
In particular and without limiting any of the foregoing, the
Administrative Agent shall have no responsibility for confirming the accuracy
of any compliance certificate or other document or instrument received by it
under the Loan Documents.  The
Administrative Agent may treat the payee of any Note as the holder thereof
until written notice of transfer shall have been filed with the Administrative
Agent signed by such payee in form satisfactory to the Administrative
Agent.  Each Lender acknowledges that it
has independently and without reliance on the Administrative Agent or any other
Lender, and based upon such information, investigations and inquiries as it
deems appropriate, made its own credit analysis and decision to extend credit
to the Borrower in the manner set forth in the Loan Documents.  It shall be the responsibility of each Lender
to keep itself informed as to the creditworthiness of the Borrower and its Subsidiaries,
and the Administrative Agent shall have no liability to any Lender with respect
thereto.

 

59

 

Section 11.6.                         Indemnity.  The Lenders shall ratably, in accordance with
their respective Percentages, indemnify and hold the Administrative Agent, and
its directors, officers, employees, agents, and representatives harmless from
and against any 

liabilities, losses, costs or expenses suffered or incurred by it under
any Loan Document or in connection with the transactions contemplated thereby,
regardless of when asserted or arising, except to the extent they are promptly
reimbursed for the same by the Borrower and except to the extent that any event
giving rise to a claim was caused by the gross negligence or willful misconduct
of the party seeking to be indemnified. 
The obligations of the Lenders under this Section shall survive
termination of this Agreement.  The
Administrative Agent shall be entitled to offset amounts received for the
account of a Lender under this Agreement against unpaid amounts due from such
Lender to the Administrative Agent hereunder (whether as fundings of
participations, indemnities or otherwise), but shall not be entitled to offset
against amounts owed to the Administrative Agent by any Lender arising outside
of this Agreement and the other Loan Documents.

 

Section 11.7.                                   Resignation
or Removal of Administrative Agent and Successor Administrative Agent.  The Administrative Agent may resign at any
time by giving written notice thereof to the Lenders and the Borrower.  The Administrative Agent may be removed for
gross negligence  or willful misconduct
at any time by written notice from the Required Lenders to the Administrative
Agent and the Borrower.  Upon any such
resignation or removal of the Administrative Agent, the Required Lenders shall
have the right to appoint a successor Administrative Agent from the Lenders or
if no Lender is willing to serve as Administrative Agent, a third party.  If no successor Administrative Agent shall have
been so appointed by the Required Lenders, and shall have accepted such
appointment, within 30 days after the retiring Administrative Agent’s
giving of notice of resignation then the retiring Administrative Agent may, on
behalf of the Lenders, appoint a successor Administrative Agent, which may be
any Lender hereunder or any commercial bank organized under the laws of the
United States of America or of any State thereof and having a combined capital
and surplus of at least $500,000,000. 
Upon the acceptance of its appointment as the Administrative Agent
hereunder, such successor Administrative Agent shall thereupon succeed to and
become vested with all the rights and duties of the retiring Administrative
Agent under the Loan Documents, and the retiring Administrative Agent shall be
discharged from its duties and obligations thereunder.  After any retiring Administrative Agent’s
resignation or removal hereunder as Administrative Agent, the provisions of
this Section 11 and all protective provisions of the other Loan Documents
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent, but no successor Administrative Agent shall
in any event be liable or responsible for any actions of its predecessor.  If the Administrative Agent resigns or is
removed and no successor is appointed, the rights and obligations of such
Administrative Agent shall be automatically assumed by the Required Lenders and
the Borrower shall be directed to make all payments due each Lender hereunder
directly to such Lender.

 

60

 

Section 11.8.                                   L/C
Issuer.  The L/C Issuer shall
act on behalf of the Lenders with respect to any Letters of Credit issued by it
and the documents associated therewith.  The L/C Issuer shall have all of the
benefits and immunities (i) provided to the Administrative Agent in this Section 11
with respect to any acts taken or omissions suffered by the L/C Issuer in
connection with Letters of Credit issued by it or proposed to be issued by it
and the Applications pertaining to such Letters of Credit as fully as if the
term “Administrative Agent”, as used in this Section 11, included the
L/C Issuer with respect to such acts or omissions and (ii) as
additionally provided in this Agreement with respect to such L/C Issuer.

 

Section 11.9.                                   Designation of Additional Agents.  The Administrative Agent shall have the
continuing right, for purposes hereof, at any time and from time to time to
designate one or more of the Lenders (and/or its or their Affiliates) as “syndication
agents,” “documentation agents,” “arrangers,” or other designations for
purposes hereto, but such designation shall have no substantive effect, and
such Lenders and their Affiliates shall have no additional powers, duties or
responsibilities as a result thereof.

 

SECTION 12.                                           THE GUARANTEES.

 

Section 12.1.                                   The
Guarantees.  To induce the Lenders to
provide the credits described herein and in consideration of benefits expected
to accrue to the Borrower by reason of the Commitments and for other good and
valuable consideration, receipt of which is hereby acknowledged, each Material
Subsidiary party hereto (including any Material Subsidiary formed or acquired
after the Closing Date executing an Additional Guarantor Supplement in the form
attached hereto as Exhibit G or such other form acceptable to the
Administrative Agent) hereby unconditionally and irrevocably guarantee jointly
and severally to the Administrative Agent, the Lenders, and their Affiliates,
the due and punctual payment of all present and future Obligations, including,
but not limited to, the due and punctual payment of principal of and interest
on the Notes, the Reimbursement Obligations, and the due and punctual payment
of all other Obligations now or hereafter owed by the Borrower under the Loan
Documents as and when the same shall become due and payable, whether at stated
maturity, by acceleration, or otherwise, according to the terms hereof and
thereof (including interest which, but for the filing of a petition in
bankruptcy, would otherwise accrue on any such indebtedness, obligation, or
liability).  In case of failure by the
Borrower or other obligor punctually to pay any Obligations guaranteed hereby,
each Guarantor hereby unconditionally agrees to make such payment or to cause
such payment to be made punctually as and when the same shall become due and
payable, whether at stated maturity, by acceleration, or otherwise, and as if
such payment were made by the Borrower or such obligor.

 

Section 12.2.                                   Guarantee
Unconditional.  The obligations of
each Guarantor under this Section 12 shall be unconditional and absolute
and, without limiting the generality of the foregoing, shall not be released,
discharged, or otherwise affected by:

 

(a)                                  any
extension, renewal, settlement, compromise, waiver, or release in respect of
any obligation of the Borrower or other obligor or of any other guarantor under
this Agreement or any other Loan Document or by operation of law or otherwise;

 

(b)                                 any
modification or amendment of or supplement to this Agreement or any other Loan
Document;

 

61

 

(c)                                  any
change in the corporate existence, structure, or ownership of, or any
insolvency, bankruptcy, reorganization, or other similar proceeding affecting,
the Borrower or other obligor, any other guarantor, or any of their respective
assets, or any resulting release or discharge of any obligation of the Borrower
or other obligor or of any other guarantor contained in any Loan Document;

 

(d)                                 the
existence of any claim, set-off, or other rights which the Borrower or other
obligor or any other guarantor may have at any time against the Administrative
Agent, any Lender, or any other Person, whether or not arising in connection
herewith;

 

(e)                                  any
failure to assert, or any assertion of, any claim or demand or any exercise of,
or failure to exercise, any rights or remedies against the Borrower or other
obligor, any other guarantor, or any other Person or Property;

 

(f)                                    any
application of any sums by whomsoever paid or howsoever realized to any
obligation of the Borrower or other obligor, regardless of what obligations of
the Borrower or other obligor remain unpaid;

 

(g)                                 any
invalidity or unenforceability relating to or against the Borrower or other
obligor or any other guarantor for any reason of this Agreement or of any other
Loan Document or any provision of applicable law or regulation purporting to
prohibit the payment by the Borrower or other obligor or any other guarantor of
the principal of or interest on any Note or any Reimbursement Obligation or any
other amount payable under the Loan Documents; or

 

(h)                                 any
other act or omission to act or delay of any kind by the Administrative Agent,
any Lender, or any other Person or any other circumstance whatsoever that
might, but for the provisions of this paragraph, constitute a legal or
equitable discharge of the obligations of any Guarantor under this Section 12.

 

Section 12.3.                                   Discharge
Only upon Payment in Full; Reinstatement in Certain Circumstances.  Each Guarantor’s obligations under this Section 12
shall remain in full force and effect until the Commitments are terminated, all
Letters of Credit have expired, and the principal of and interest on the Notes
and all other amounts payable by the Borrower and the Guarantors under this
Agreement and all other Loan Documents and, if then outstanding and
unpaid.  If at any time any payment of
the principal of or interest on any Note or any Reimbursement Obligation or any
other amount payable by the Borrower or other obligor or any Guarantor under
the Loan Documents is rescinded or must be otherwise restored or returned upon
the insolvency, bankruptcy, or reorganization of the Borrower or other obligor
or of any guarantor, or otherwise, each Guarantor’s obligations under this Section 12
with respect to such payment shall be reinstated at such time as though such
payment had become due but had not been made at such time.

 

Section 12.4.                                   Subrogation.  Each Guarantor agrees it will not exercise
any rights which it may acquire by way of subrogation by any payment made
hereunder, or otherwise, until all the Obligations shall have been paid in full
subsequent to the termination of all the Commitments

 

62

 

and expiration of all
Letters of Credit.  If any amount shall
be paid to a Guarantor on account of such subrogation rights at any time prior
to the later of (x) the payment in full of the Obligations and all other
amounts payable by the Borrower hereunder and the other Loan Documents and (y) the
termination of the Commitments and expiration of all Letters of Credit, such
amount shall be held in trust for the benefit of the Administrative Agent and
the Lenders (and their Affiliates) and shall forthwith be paid to the Administrative
Agent for the benefit of the Lenders (and their Affiliates) or be credited and
applied upon the Obligations, whether matured or unmatured, in accordance with
the terms of this Agreement.

 

Section 12.5.                                   Waivers.  Each Guarantor irrevocably waives acceptance
hereof, presentment, demand, protest, and any notice not provided for herein,
as well as any requirement that at any time any action be taken by the
Administrative Agent, any Lender, or any other Person against the Borrower or
other obligor, another guarantor, or any other Person.

 

Section 12.6.                                   Limit
on Recovery.  Notwithstanding any
other provision hereof, the right of recovery against each Guarantor under this
Section 12 shall not exceed $1.00 less than the lowest amount which would
render such Guarantor’s obligations under this Section 12 void or voidable
under applicable law, including, without limitation, fraudulent conveyance law.

 

Section 12.7.                                   Stay
of Acceleration.  If acceleration of
the time for payment of any amount payable by the Borrower or other obligor
under this Agreement or any other Loan Document, is stayed upon the insolvency,
bankruptcy or reorganization of the Borrower or such obligor, all such amounts
otherwise subject to acceleration under the terms of this Agreement or the
other Loan Documents, shall nonetheless be payable by the Guarantors hereunder
forthwith on demand by the Administrative Agent made at the request of the
Required Lenders.

 

Section 12.8.                                   Benefit
to Guarantors.  The Borrower and the
Guarantors are engaged in related businesses and integrated to such an extent
that the financial strength and flexibility of the Borrower has a direct impact
on the success of each Guarantor.  Each
Guarantor will derive substantial direct and indirect benefit from the
extensions of credit hereunder.

 

Section 12.9.                                   Guarantor
Covenants.  Each Guarantor shall take
such action as the Borrower is required by this Agreement to cause such
Guarantor to take, and shall refrain from taking such action as the Borrower is
required by this Agreement to prohibit such Guarantor from taking.

 

SECTION 13.                                           MISCELLANEOUS.

 

Section 13.1.                                   Withholding
Taxes.  (a) Payments
Free of Withholding.  Except
as otherwise required by law and subject to Section 13.1(b) hereof,
each payment by the Borrower and the Guarantors under this Agreement or the
other Loan Documents shall be made without withholding for or on account of any
present or future taxes (other than overall net income taxes on the recipient)
imposed by or within the jurisdiction in which the Borrower or such Guarantor
is domiciled, any jurisdiction from which the Borrower or such Guarantor makes
any payment, or (in each case) any political subdivision or taxing authority
thereof or therein.  If any such withholding
is so required, the Borrower or such Guarantor shall make the withholding, pay
the

 

63

 

amount withheld to the appropriate governmental
authority before penalties attach thereto or interest accrues thereon, and
forthwith pay such additional amount as may be necessary to ensure that the net
amount actually received by each Lender and the Administrative Agent free and
clear of such taxes (including such taxes on such additional amount) is equal
to the amount which that Lender or the Administrative Agent (as the case may
be) would have received had such withholding not been made.  If the Administrative Agent or any Lender
pays any amount in respect of any such taxes, penalties or interest, the
Borrower or such Guarantor shall reimburse the Administrative Agent or such
Lender for that payment on demand in the currency in which such payment was
made.  If the Borrower or such Guarantor
pays any such taxes, penalties or interest, it shall deliver official tax receipts
evidencing that payment or certified copies thereof to the Lender or
Administrative Agent on whose account such withholding was made (with a copy to
the Administrative Agent if not the recipient of the original) on or before the
thirtieth day after payment.

 

(b)                                 U.S. Withholding Tax Exemptions.  Each Lender that is not a United States
person (as such term is defined in Section 7701(a)(30) of the Code) shall
submit to the Borrower and the Administrative Agent on or before the date the
initial Credit Event is made hereunder or, if later, the date such financial
institution becomes a Lender hereunder, two duly completed and signed copies of
(i) either Form W-8 BEN (relating to such Lender and entitling
it to a complete exemption from withholding under the Code on all amounts to be
received by such Lender, including fees, pursuant to the Loan Documents and the
Obligations) or Form W-8 ECI (relating to all amounts to be received
by such Lender, including fees, pursuant to the Loan Documents and the
Obligations) of the United States Internal Revenue Service or (ii) solely
if such Lender is claiming exemption from United States withholding tax under Section 871(h) or
881(c) of the Code with respect to payments of “portfolio interest”, a Form W-8 BEN,
or any successor form prescribed by the Internal Revenue Service, and a
certificate representing that such Lender is not a bank for purposes of Section 881(c) of
the Code, is not a 10-percent shareholder (within the meaning of Section 871(h)(3)(B) of
the Code) of the Borrower and is not a controlled foreign corporation related
to the Borrower (within the meaning of Section 864(d)(4) of the
Code).  Thereafter and from time to time,
each Lender shall submit to the Borrower and the Administrative Agent such
additional duly completed and signed copies of one or the other of such Forms
(or such successor forms as shall be adopted from time to time by the relevant
United States taxing authorities) and such other certificates as may be (i) requested
by the Borrower in a written notice, directly or through the Administrative
Agent, to such Lender and (ii) required under then-current United States
law or regulations to avoid or reduce United States withholding taxes on
payments in respect of all amounts to be received by such Lender, including
fees, pursuant to the Loan Documents or the Obligations.  Upon the request of the Borrower or the
Administrative Agent, each Lender that is a United States person (as such term
is defined in Section 7701(a)(30) of the Code) shall submit to the
Borrower and the Administrative Agent a certificate to the effect that it is
such a United States person.

 

(c)                                  Inability of Lender to Submit Forms.  If any Lender determines, as a result of any
change in applicable law, regulation or treaty, or in any official application
or interpretation thereof, that it is unable to submit to the Borrower or the
Administrative Agent any form or certificate that such Lender is obligated to
submit pursuant to subsection (b) of this Section 13.1 or that
such Lender is required to withdraw or cancel any such form or certificate
previously

 

64

 

submitted or any such form or certificate otherwise
becomes ineffective or inaccurate, such Lender shall promptly notify the
Borrower and Administrative Agent of such fact and the Lender shall to that
extent not be obligated to provide any such form or certificate and will be
entitled to withdraw or cancel any affected form or certificate, as applicable.

 

Section 13.2.                                   No
Waiver, Cumulative Remedies.  No
delay or failure on the part of the Administrative Agent or any Lender or on
the part of the holder or holders of any of the Obligations in the exercise of
any power or right under any Loan Document shall operate as a waiver thereof or
as an acquiescence in any default, nor shall any single or partial exercise of
any power or right preclude any other or further exercise thereof or the
exercise of any other power or right. 
The rights and remedies hereunder of the Administrative Agent, the
Lenders and of the holder or holders of any of the Obligations are cumulative
to, and not exclusive of, any rights or remedies which any of them would
otherwise have.

 

Section 13.3.                                   Non-Business
Days.  If any payment hereunder
becomes due and payable on a day which is not a Business Day, the due date of
such payment shall be extended to the next succeeding Business Day on which
date such payment shall be due and payable. 
In the case of any payment of principal falling due on a day which is
not a Business Day, interest on such principal amount shall continue to accrue
during such extension at the rate per annum then in effect, which accrued
amount shall be due and payable on the next scheduled date for the payment of
interest.

 

Section 13.4.                                   Documentary
Taxes.  The Borrower agrees to pay on
demand any documentary, stamp or similar taxes payable in respect of this Agreement
or any other Loan Document, including interest and penalties, in the event any
such taxes are assessed, irrespective of when such assessment is made and
whether or not any credit is then in use or available hereunder.

 

Section 13.5.                                   Survival
of Representations.  All
representations and warranties made herein or in any other Loan Document or in
certificates given pursuant hereto or thereto shall survive the execution and
delivery of this Agreement and the other Loan Documents, and shall continue in
full force and effect with respect to the date as of which they were made as
long as any credit is in use or available hereunder.

 

Section 13.6.                                   Survival of Indemnities. 
All indemnities and other provisions relative to reimbursement to the
Lenders of amounts sufficient to protect the yield of the Lenders with respect
to the Loans and Letters of Credit, including, but not limited to,
Sections 1.11, 10.3, and 13.15 hereof, shall survive the termination of
this Agreement and the other Loan Documents and the payment of the Obligations.

 

Section 13.7.                                   Sharing
of Set-Off.  Each Lender agrees with
each other Lender a party hereto that if such Lender shall receive and retain
any payment, whether by set-off or application of deposit balances or
otherwise, on any of the Loans or Reimbursement Obligations in excess of its
ratable share of payments on all such Obligations then outstanding to the
Lenders, then such Lender shall purchase for cash at face value, but without
recourse, ratably from each of the other Lenders such amount of the Loans or
Reimbursement Obligations, or participations therein, held

 

65

 

by each such other Lenders (or interest therein) as
shall be necessary to cause such Lender to share such excess payment ratably
with all the other Lenders; provided, however,
that if any such purchase is made by any Lender, and if such excess payment or
part thereof is thereafter recovered from such purchasing Lender, the related
purchases from the other Lenders shall be rescinded ratably and the purchase
price restored as to the portion of such excess payment so recovered, but
without interest.  For purposes of this
Section, amounts owed to or recovered by the L/C Issuer in connection with
Reimbursement Obligations in which Lenders have been required to fund their
participation shall be treated as amounts owed to or recovered by the L/C
Issuer as a Lender hereunder.

 

Section 13.8.                                   Notices.  Except as otherwise specified herein, all
notices hereunder and under the other Loan Documents shall be in writing
(including, without limitation, notice by telecopy) and shall be given to the
relevant party at its address or telecopier number set forth below, or such
other address or telecopier number as such party may hereafter specify by
notice to the Administrative Agent and the Borrower given by courier, by United
States certified or registered mail, by telecopy or by other telecommunication
device capable of creating a written record of such notice and its
receipt.  Notices under the Loan
Documents to the Lenders and the Administrative Agent shall be addressed to
their respective addresses or telecopier numbers set forth on the signature pages hereof,
and to the Borrower or any Guarantor to:

 

	
  LTC
  Properties, Inc.

  	
   

  	
   

  
	
  31365 Oak Crest
  Drive

  	
   

  	
   

  
	
  Suite 200

  	
   

  	
   

  
	
  Westlake
  Village, California 91361

  
	
  Attention:

  	
   

  	
  Chief Financial
  Officer

  
	
  Telephone:

  	
   

  	
  (805) 981-8655

  
	
  Telecopy:

  	
   

  	
  (805) 981-8663

  
					

 

Each
such notice, request or other communication shall be effective (i) if
given by telecopier, when such telecopy is transmitted to the telecopier number
specified in this Section or on the signature pages hereof and a
confirmation of such telecopy has been received by the sender, (ii) if
given by mail, 5 days after such communication is deposited in the mail,
certified or registered with return receipt requested, addressed as aforesaid
or (iii) if given by any other means, when delivered at the addresses
specified in this Section or on the signature pages hereof; provided
that  any notice given pursuant to Section 1
hereof shall be effective only upon receipt.

 

Section 13.9.                                   Counterparts.  This Agreement may be executed in any number
of counterparts, and by the different parties hereto on separate counterpart
signature pages, and all such counterparts taken together shall be deemed to
constitute one and the same instrument.

 

Section 13.10.                            Successors
and Assigns.  This Agreement shall be
binding upon the Borrower and the Guarantors and their successors and assigns,
and shall inure to the benefit of the Administrative Agent and each of the
Lenders and the benefit of their respective successors and assigns, including
any subsequent holder of any of the Obligations.  The Borrower and the Guarantors may not
assign any of their rights or obligations under any Loan Document without the
written consent of all of the Lenders.

 

66

 

Section 13.11.         Participants. 
Each Lender shall have the right at its own cost to grant participations
(to be evidenced by one or more agreements or certificates of participation) in
the Loans made and Reimbursement Obligations and/or Commitments held by such
Lender at any time and from time to time to one or more other Persons; provided
that no such participation shall relieve any Lender of any of its obligations
under this Agreement, and, provided, further that no such participant shall
have any rights under this Agreement except as provided in this Section, and
the Administrative Agent shall have no obligation or responsibility to such
participant.  Any agreement pursuant to
which such participation  is granted
shall provide that the granting Lender shall retain the sole right and
responsibility to enforce the obligations of the Borrower under this Agreement
and the other Loan Documents including, without limitation, the right to
approve any amendment, modification or waiver of any provision of the Loan Documents,
except that such agreement may provide that such Lender will not agree to any
modification, amendment or waiver of the Loan Documents that would reduce the
amount of or postpone any fixed date for payment of any Obligation in which
such participant has an interest.  Any
party to which such a participation has been granted shall have the benefits of
Section 1.11 and Section 10.3 hereof. 
The Borrower authorizes each Lender to disclose to any participant or
prospective participant under this Section any financial or other
information pertaining to the Borrower or any Subsidiary.

 

Section 13.12.         Assignments.  (a) Any
Lender may at any time assign to one or more Eligible Assignees all or a
portion of such Lender’s rights and obligations under this Agreement (including
all or a portion of its Commitment and the Loans at the time owing to it); provided that any such assignment shall be subject to the
following conditions:

 

(i)       Minimum Amounts.  (A) In the case of an assignment of the
entire remaining amount of the assigning Lender’s Commitment and the Loans and
participation interest in L/C Obligations at the time owing to it or in the
case of an assignment to a Lender, an Affiliate of a Lender or an Approved
Fund, no minimum amount need be assigned; and (B) in any case not
described in subsection (a)(i)(A) of this Section, the aggregate amount of
the Commitment (which for this purpose includes Loans and participation
interest in L/C Obligations outstanding thereunder) or, if the applicable
Commitment is not then in effect, the principal outstanding balance of the
Loans and participation interest in L/C Obligations of the assigning Lender
subject to each such assignment (determined as of the date the Assignment and
Acceptance with respect to such assignment is delivered to the Administrative
Agent or, if “Effective Date” is specified in the Assignment and Acceptance, as
of the Effective Date) shall not be less than $5,000,000, unless each of the
Administrative Agent and, so long as no Event of Default has occurred and is
continuing, the Borrower otherwise consents (each such consent not to be
unreasonably withheld or delayed);

 

(ii)      Proportionate Amounts. Each
partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement with
respect to the Loan or the Commitment assigned.

 

(iii)     Required Consents.        No
consent shall be required for any assignment except to the extent required by Section 13.12(a)(i)(B) and,
in addition:

 

67

 

(a)        the consent of the Borrower (such
consent not to be unreasonably withheld or delayed) shall be required unless (x) an
Event of Default  has occurred and is continuing
at the time of such assignment or (y) such assignment is to a Lender or an
Affiliate of a Lender;

 

 (b)        the consent of the
Administrative Agent (such consent not to be unreasonably withheld or delayed)
shall be required for assignments to a Person that is not a Lender, an
Affiliate of a Lender or an Approved Fund with respect to a Lender; and

 

 (c)        the consent of the
L/C Issuer (such consent not to be unreasonably withheld or delayed) shall
be required for any assignment that increases the obligation of the assignee to
participate in exposure under one or more Letters of Credit (whether or not
then outstanding).

 

(iv)     Assignment and Acceptance.    The
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Acceptance, together with a processing and recordation
fee of $3,500, and the assignee, if it is not a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire.

 

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

 

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

 

Subject to acceptance and
recording thereof by the Administrative Agent pursuant to Section 13.12(b) hereof,
from and after the effective date specified in each Assignment and Acceptance,
the assignee thereunder shall be a party to this Agreement and, to the extent
of the interest assigned by such Assignment and Acceptance, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Acceptance, be released from its obligations under this Agreement (and, in the
case of an Assignment and Acceptance covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto) but shall continue to be entitled to the benefits of
Sections 13.6 and 13.15 with respect to facts and circumstances occurring
prior to the effective date of such assignment. 
Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this Section shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with Section 13.11 hereof.  The address for notices to such assignee
Lender shall be as specified in the Assignment and Acceptance executed by
it.  Promptly upon the effectiveness of
any such Assignment and Acceptance, the Borrower shall execute and deliver
replacement Notes to the assignee Lender and the assigning Lender in the
respective amounts of their Commitments (or assigned principal amounts, as
applicable) after giving effect to the reduction occasioned by such assignment
(all such Notes to constitute “Notes” for all
purposes of the Loan Documents), and the assignee Lender shall thereafter
surrender to the Borrower its old Notes. 
The Borrower authorizes each Lender to disclose to any purchaser or
prospective purchaser of an interest in the Loans and interest in Letters of
Credit owed to it or its Commitments under this Section any financial or
other information pertaining to the Borrower or any Subsidiary.

 

68

 

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

 

 (c)       Any Lender may at any
time pledge or grant a security interest in all or any portion of its rights
under this Agreement to secure obligations of such Lender, including any such
pledge or grant to a Federal Reserve Bank, and this Section shall not
apply to any such pledge or grant of a security interest; provided
that no such pledge or grant of a security interest shall release a Lender from
any of its obligations hereunder or substitute any such pledgee or secured
party for such Lender as a party hereto; provided further, however,
the right of any such pledgee or grantee (other than any Federal Reserve Bank)
to further transfer all or any portion of the rights pledged or granted to it,
whether by means of foreclosure or otherwise, shall be at all times subject to
the terms of this Agreement.

 

Section 13.13.      Amendments.  Any provision of this Agreement or the other
Loan Documents may be amended or waived if, but only if, such amendment or
waiver is in writing and is signed by (a) the Borrower, (b) the
Required Lenders, and (c) if the rights or duties of the Administrative
Agent or the L/C Issuer are affected thereby, the Administrative Agent or
such L/C Issuer, as applicable; provided that:

 

(i)         no amendment or waiver pursuant to this
Section 13.13 shall (A) increase any Commitment of any Lender without
the consent of such Lender or (B) reduce the amount of or postpone the
date for any scheduled payment of any principal of or interest on any Loan or
of any Reimbursement Obligation or of any fee payable hereunder without the
consent of the Lender to which such payment is owing or which has committed to
make such Loan or Letter of Credit (or participate therein) hereunder;

 

(ii)        no amendment or waiver pursuant to this Section 13.13
shall, unless signed by each Lender, increase the aggregate Commitments of the
Lenders, change the definitions of Termination Date or Required Lenders, change
the provisions of this Section 13.13, release any material guarantor
(except as otherwise provided for in the Loan Documents), or affect the number
of Lenders required to take any action hereunder or under any other Loan
Document; and

 

(iii)       no amendment to Section 12 hereof
shall be made without the consent of the Guarantor(s) affected thereby.

 

69

 

Section 13.14.      Headings. Section headings used in this
Agreement are for reference only and shall not affect the construction of this
Agreement.

 

Section 13.15.     Costs
and Expenses; Indemnification.  (a) The
Borrower agrees to pay all reasonable costs and expenses of the Administrative
Agent in connection with the preparation, negotiation, syndication, and
administration of the Loan Documents, including, without limitation, the
reasonable fees and disbursements of counsel to the Administrative Agent, in
connection with the preparation and execution of the Loan Documents, and any
amendment, waiver or consent related thereto, whether or not the transactions
contemplated herein are consummated.  The
Borrower further agrees to indemnify the Administrative Agent, each Lender, and
their respective directors, officers, employees, agents, financial advisors,
and consultants against all losses, claims, damages, penalties, judgments,
liabilities and expenses (including, without limitation, all expenses of
litigation or preparation therefor, whether or not the indemnified Person is a
party thereto, or any settlement arrangement arising from or relating to any
such litigation) which any of them may pay or incur arising out of or relating
to any Loan Document or any of the transactions contemplated thereby or the
enforcement or preservation of any rights or remedies under the Loan Documents
or the direct or indirect application or proposed application of the proceeds
of any Loan or Letter of Credit, other than those which arise from the gross
negligence or willful misconduct of the party claiming indemnification.  The Borrower, upon demand by the Administrative
Agent or a Lender at any time, shall reimburse the Administrative Agent or such
Lender for any legal or other expenses incurred in connection with
investigating or defending against any of the foregoing (including any
settlement costs relating to the foregoing) except if the same is directly due
to the gross negligence or willful misconduct of the party to be
indemnified.  The obligations of the
Borrower under this Section shall survive the termination of this
Agreement.

 

(b)       The Borrower unconditionally agrees to
forever indemnify, defend and hold harmless, and covenants not to sue for any
claim for contribution against, the Administrative Agent and the Lenders for
any damages, costs, loss or expense, including without limitation, response, remedial
or removal costs, arising out of any of the following:  (i) any presence, release, threatened
release or disposal of any hazardous or toxic substance or petroleum by the
Borrower or any Subsidiary or otherwise occurring on or with respect to its Property
(whether owned or leased), (ii) the operation or violation of any
environmental law, whether federal, state, or local, and any regulations
promulgated thereunder, by the Borrower or any Subsidiary or otherwise
occurring on or with respect to its Property (whether owned or leased), (iii) any
claim for personal injury or property damage in connection with the Borrower or
any Subsidiary or otherwise occurring on or with respect to its Property
(whether owned or leased), and (iv) the inaccuracy or breach of any
environmental representation, warranty or covenant by the Borrower or any
Subsidiary made herein or in any other Loan Document evidencing or securing any
Obligations or setting forth terms and conditions applicable thereto or
otherwise relating thereto, except for damages arising from the willful
misconduct or gross negligence of the party claiming indemnification.  This indemnification shall survive the
payment and satisfaction of all Obligations and the termination of this
Agreement, and shall remain in force beyond the expiration of any applicable
statute of limitations and payment or satisfaction in full of any single claim
under this indemnification.  This
indemnification shall be binding upon the successors and assigns of the
Borrower and shall inure to the benefit of Administrative Agent and the Lenders
directors, officers, employees, agents, and collateral trustees, and their
successors and assigns.

 

70

 

Section 13.16.     Set-off. 
In addition to any rights now or hereafter granted under applicable law
and not by way of limitation of any such rights, upon the occurrence of any
Event of Default, each Lender and each subsequent holder of any Obligation is
hereby authorized by the Borrower and each Guarantor at any time or from time
to time, without notice to the Borrower or such Guarantor or to any other
Person, any such notice being hereby expressly waived, to set-off and to
appropriate and to apply any and all deposits (general or special, including,
but not limited to, indebtedness evidenced by certificates of deposit, whether
matured or unmatured, but not including trust accounts, and in whatever
currency denominated) and any other indebtedness at any time held or owing by
that Lender or that subsequent holder to or for the credit or the account of
the Borrower or such Guarantor, whether or not matured, against and on account
of the Obligations of the Borrower or such Guarantor to that Lender or that
subsequent holder under the Loan Documents, including, but not limited to, all
claims of any nature or description arising out of or connected with the Loan
Documents, irrespective of whether or not (a) that Lender or that
subsequent holder shall have made any demand hereunder or (b) the
principal of or the interest on the Loans or Notes and other amounts due
hereunder shall have become due and payable pursuant to Section 9 and
although said obligations and liabilities, or any of them, may be contingent or
unmatured.

 

 Section 13.17.     Entire
Agreement.  The Loan Documents
constitute the entire understanding of the parties thereto with respect to the
subject matter thereof and any prior agreements, whether written or oral, with
respect thereto are superseded hereby.

 

Section 13.18.     Governing
Law.  This Agreement and the other Loan Documents
(except as otherwise specified therein), and the rights and duties of the
parties hereto, shall be construed and determined in accordance with the
internal laws of the State of New York.

 

 Section 13.19.     Severability
of Provisions.  Any provision
of any Loan Document which is unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such unenforceability
without invalidating the remaining provisions hereof or affecting the validity
or enforceability of such provision in any other jurisdiction.  All rights, remedies and powers provided in
this Agreement and the other Loan Documents may be exercised only to the extent
that the exercise thereof does not violate any applicable mandatory provisions
of law, and all the provisions of this Agreement and other Loan Documents are
intended to be subject to all applicable mandatory provisions of law which may
be controlling and to be limited to the extent necessary so that they will not
render this Agreement or the other Loan Documents invalid or unenforceable.

 

Section 13.20.     Excess
Interest.  Notwithstanding any provision to the contrary
contained herein or in any other Loan Document, no such provision shall require
the payment or permit the collection of any amount of interest in excess of the
maximum amount of interest permitted by applicable law to be charged for the
use or detention, or the forbearance in the collection, of all or any portion
of the Loans or other obligations outstanding under this Agreement or any other
Loan Document (“Excess Interest”).  If any Excess Interest is provided for, or is
adjudicated to be 

 

71

 

provided for, herein or in any other Loan Document,
then in such event (a) the provisions of this Section shall govern
and control, (b) neither the Borrower nor any guarantor or endorser shall
be obligated to pay any Excess Interest, (c) any Excess Interest that the
Administrative Agent or any Lender may have received hereunder shall, at the
option of the Administrative Agent, be (i) applied as a credit against the
then outstanding principal amount of Obligations hereunder and accrued and
unpaid interest thereon (not to exceed the maximum amount permitted by applicable
law), (ii) refunded to the Borrower, or (iii) any combination of the
foregoing, (d) the interest rate payable hereunder or under any other Loan
Document shall be automatically subject to reduction to the maximum lawful
contract rate allowed under applicable usury laws (the “Maximum
Rate”), and this Agreement and the other Loan Documents shall be
deemed to have been, and shall be, reformed and modified to reflect such
reduction in the relevant interest rate, and (e) neither the Borrower nor
any guarantor or endorser shall have any action against the Administrative
Agent or any Lender for any damages whatsoever arising out of the payment or
collection of any Excess Interest. 
Notwithstanding the foregoing, if for any period of time interest on any
of Borrower’s Obligations is calculated at the Maximum Rate rather than the
applicable rate under this Agreement, and thereafter such applicable rate
becomes less than the Maximum Rate, the rate of interest payable on the
Borrower’s Obligations shall remain at the Maximum Rate until the Lenders have
received the amount of interest which such Lenders would have received during
such period on the Borrower’s Obligations had the rate of interest not been
limited to the Maximum Rate during such period.

 

 Section 13.21.     Construction.  Nothing contained herein shall be deemed or
construed to permit any act or omission which is prohibited by the terms of any
Collateral Document, the covenants and agreements contained herein being in
addition to and not in substitution for the covenants and agreements contained
in the Collateral Documents.

 

Section 13.22.     Lender’s
Obligations Several.  The obligations of the Lenders hereunder are
several and not joint.  Nothing contained
in this Agreement and no action taken by the Lenders pursuant hereto shall be
deemed to constitute the Lenders a partnership, association, joint venture or
other entity.

 

Section 13.23.     Submission
to Jurisdiction; Waiver of Jury Trial.  The Borrower
and the Guarantors hereby submit to the nonexclusive jurisdiction of the
Federal Courts located in New York, New York and of any New York State court
sitting in the City of New York for purposes of all legal proceedings arising
out of or relating to this Agreement, the other Loan Documents or the transactions
contemplated hereby or thereby.  The
Borrower and the Guarantors irrevocably waive, to the fullest extent permitted
by law, any objection which they may now or hereafter have to the laying of the
venue of any such proceeding brought in such a court and any claim that any
such proceeding brought in such a court has been brought in an inconvenient
forum.  THE BORROWER, THE GUARANTORS, THE
ADMINISTRATIVE AGENT, AND THE LENDERS HEREBY IRREVOCABLY WAIVE ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO
ANY LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY.

 

72

 

Section 13.24.     Amendment
and Restatement.  This Agreement shall become effective on the
Closing Date and shall supersede all provisions of the Prior Credit Agreement
as of such date.  From and after the
Closing Date, all references made to the Prior Credit Agreement in any Loan
Document or in any other instrument or document shall, without more, be deemed
to refer to this Agreement.

 

Section 13.25.     USA
Patriot Act.  L/C Issuer and each Lender that is subject to
the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed
into law October 26, 2001)) (the “Act”) hereby
notifies the Borrower that pursuant to the requirements of the Act, it is
required to obtain, verify, and record information that identifies the
Borrower, which information includes the name and address of the Borrower and
other information that will allow such L/C Issuer or such Lender to identify
the Borrower in accordance with the Act.

 

 Section 13.26.     Equalization
of Outstanding Obligations.  (a) Equalization of Outstanding Obligations.  Upon the satisfaction of the conditions
precedent set forth in Section 7.2 hereof, all Loans and Letters of Credit
outstanding under, and as defined in, the Prior Credit Agreement shall remain
outstanding as part of the initial Borrowing of Loans and issuance of Letters
of Credit under this Agreement and, in connection therewith, the Borrower shall
be deemed to have repaid all outstanding Eurodollar Loans on the Closing Date
and shall pay to each Lender who is currently a party to the Prior Credit
Agreement any compensation due such Lender under Section 1.11 of the Prior
Credit Agreement as a result thereof.  On
the Closing Date, the Lenders each agree to make such purchases and sales of
interests in the outstanding Loans and interests in outstanding Letters of
Credit between themselves so that each Lender is then holding its Percentage of
outstanding Loans and L/C Obligations. 
Such purchases and sales shall be arranged through the Administrative
Agent and each Lender hereby agrees to execute such further instruments and
documents, if any, as the Agent may reasonably request in connection therewith.

 

(b)       Return of Notes.  The Lenders under the Prior Credit Agreement
agree to return to the Borrower promptly after the Closing Date the Notes
issued under, and as defined in, the Prior Credit Agreement, which Notes are
replaced by certain Notes issued hereunder.

 

Section 13.27.     Departing
Lenders.  The commitments of the Departing Lenders under
the Prior Credit Agreement are hereby terminated and the Departing Lenders
cease to be Lenders under the Credit Agreement.

 

[SIGNATURE PAGES TO FOLLOW]

 

73

 

This Amended and Restated Credit Agreement is entered
into between us for the uses and purposes hereinabove set forth as of the date
first above written.

 

	
   

  	
  “BORROWER”

  
	
   

  	
   

  
	
   

  	
  LTC PROPERTIES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Wendy
  Simpson

  
	
   

  	
   

  	
  Name:

  	
  Wendy Simpson

  
	
   

  	
   

  	
  Title:

  	
  CEO &
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Pamela
  Shelley-Kessler

  
	
   

  	
   

  	
  Name:

  	
  Pamela
  Shelley-Kessler

  
	
   

  	
   

  	
  Title:

  	
  SVP &
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  “GUARANTORS”

  
	
   

  	
   

  
	
   

  	
  LTC WEST, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Wendy
  Simpson

  
	
   

  	
   

  	
  Name:

  	
  Wendy Simpson

  
	
   

  	
   

  	
  Title:

  	
  CEO &
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Pamela
  Shelley-Kessler

  
	
   

  	
   

  	
  Name:

  	
  Pamela
  Shelley-Kessler

  
	
   

  	
   

  	
  Title:

  	
  SVP &
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  FLORIDA-LTC,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Wendy
  Simpson

  
	
   

  	
   

  	
  Name:

  	
  Wendy Simpson

  
	
   

  	
   

  	
  Title:

  	
  CEO &
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Pamela
  Shelley-Kessler

  
	
   

  	
   

  	
  Name:

  	
  Pamela
  Shelley-Kessler

  
	
   

  	
   

  	
  Title:

  	
  SVP &
  Chief Financial Officer

  
						

 

 

	
   

  	
  LTC GP I, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Wendy
  Simpson

  
	
   

  	
   

  	
  Name:

  	
  Wendy Simpson

  
	
   

  	
   

  	
  Title:

  	
  CEO &
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Pamela
  Shelley-Kessler

  
	
   

  	
   

  	
  Name:

  	
  Pamela
  Shelley-Kessler

  
	
   

  	
   

  	
  Title:

  	
  SVP &
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  LTC GP VI, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Wendy
  Simpson

  
	
   

  	
   

  	
  Name:

  	
  Wendy Simpson

  
	
   

  	
   

  	
  Title:

  	
  CEO &
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Pamela
  Shelley-Kessler

  
	
   

  	
   

  	
  Name:

  	
  Pamela
  Shelley-Kessler

  
	
   

  	
   

  	
  Title:

  	
  SVP &
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NORTH CAROLINA
  REAL ESTATE 

  
	
   

  	
   

  	
  INVESTMENTS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Wendy
  Simpson

  
	
   

  	
   

  	
  Name:

  	
  Wendy Simpson

  
	
   

  	
   

  	
  Title:

  	
  CEO &
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Pamela
  Shelley-Kessler

  
	
   

  	
   

  	
  Name:

  	
  Pamela
  Shelley-Kessler

  
	
   

  	
   

  	
  Title:

  	
  SVP &
  Chief Financial Officer

  
								

 

 

	
   

  	
  EDUCATION
  PROPERTY INVESTORS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Wendy
  Simpson

  
	
   

  	
   

  	
  Name:

  	
  Wendy Simpson

  
	
   

  	
   

  	
  Title:

  	
  CEO &
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Pamela
  Shelley-Kessler

  
	
   

  	
   

  	
  Name:

  	
  Pamela
  Shelley-Kessler

  
	
   

  	
   

  	
  Title:

  	
  SVP &
  Chief Financial Officer

  

 

 

	
   

  	
  “LENDERS”

  
	
   

  	
   

  
	
   

  	
  BANK OF MONTREAL, Chicago Branch, as 

  
	
   

  	
   

  	
  L/C Issuer and as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ David L. Mistic

  
	
   

  	
   

  	
  Name:

  	
  David L. Mistic

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  115 South LaSalle Street

  
	
   

  	
  Chicago, Illinois 
  60603

  
	
   

  	
  Attention:

  	
  David L. Mistic

  
	
   

  	
  Telecopy:

  	
  (312) 293-5068

  
	
   

  	
  Telephone:

  	
  (312) 461-1402

  
						

 

 

	
   

  	
  BMO CAPITAL MARKETS FINANCING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ David L. Mistic

  
	
   

  	
   

  	
  Name:

  	
  David L. Mistic

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  115 South LaSalle Street

  
	
   

  	
  Chicago, Illinois 
  60603

  
	
   

  	
  Attention:

  	
  David L. Mistic

  
	
   

  	
  Telecopy:

  	
  (312) 293-5068

  
	
   

  	
  Telephone:

  	
  (312) 461-1402

  
						

 

 

	
   

  	
  KEY BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Laura Conway

  
	
   

  	
   

  	
  Name:

  	
  Laura Conway

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  Laura Conway

  
	
   

  	
  127 Public Square

  
	
   

  	
  Mail Code OH-01-27-0848

  
	
   

  	
  Cleveland, OH 
  44114

  
	
   

  	
  Telecopy:

  	
  (216) 689-3630

  
	
   

  	
  Telephone:

  	
  (216) 689-5970

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  
	
   

  	
   

  
	
   

  	
  Denise J. Jones

  
	
   

  	
  800 Superior Avenue

  
	
   

  	
  Mail Code OH-01-02-0628

  
	
   

  	
  Cleveland, OH 
  44114

  
	
   

  	
  Telecopy:

  	
  (216) 828-7498

  
	
   

  	
  Telephone:

  	
  (216) 828-7521

  
						

 

 

	
   

  	
  RAYMOND JAMES BANK, FSB

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Steven F. Paley

  
	
   

  	
   

  	
  Name:

  	
  Steven F. Paley

  
	
   

  	
   

  	
  Title:

  	
  Sr. Vice President

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  710 Carillon Parkway

  
	
   

  	
  St. Petersburg, FL 
  33716

  
	
   

  	
  Attention:

  	
  Steven F. Paley

  
	
   

  	
  Telecopy:

  	
  (727) 567-8830

  
	
   

  	
  Telephone:

  	
  (727) 567-1720

  
						

 

 

	
   

  	
  ROYAL BANK OF CANADA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Dan LePage

  
	
   

  	
   

  	
  Name:

  	
  Dan LePage

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  One Liberty Plaza, 3rd Floor

  
	
   

  	
  165 Broadway

  
	
   

  	
  New York, New York 
  10006-1404

  
	
   

  	
  Attention:

  	
  Dan LePage

  
	
   

  	
  Telecopy:

  	
  (212) 428-6459

  
	
   

  	
  Telephone:

  	
  (212) 428-6605

  
						

 

 

EXHIBIT A

 

NOTICE OF PAYMENT
REQUEST

 

[Date]

 

[Name of Lender]

[Address]

 

Attention:

 

Reference is made to the Second Amended and Restated
Credit Agreement, dated as of
                            , 2008,
among LTC Properties, Inc., the Guarantors from time to time party
thereto, the Lenders party thereto, and Bank of Montreal, Chicago Branch, as
Administrative Agent (the “Credit Agreement”).  Capitalized terms used herein and not defined
herein have the meanings assigned to them in the Credit Agreement.  [The Borrower has failed to pay its
Reimbursement Obligation in the amount of
$                        .  Your Percentage of the unpaid Reimbursement
Obligation is
$                          ]
or
[                                                    
has been required to return a payment by the Borrower of a Reimbursement
Obligation in the amount of $                              .  Your Percentage of the returned Reimbursement
Obligation is
$                              .]

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  BANK OF MONTREAL, Chicago Branch,

  
	
   

  	
  as L/C Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  
	
   

  	
       Name

  	
   

  
	
   

  	
       Title

  	
   

  
				

 

 

EXHIBIT B

 

NOTICE OF BORROWING

 

Date:                         ,            

 

To:                       BANK OF MONTREAL, Chicago Branch, as
Administrative Agent for the Lenders parties to the Second Amended and Restated
Credit Agreement dated as of
                          , 2008
(as extended, renewed, amended or restated from time to time, the “Credit Agreement”), among LTC PROPERTIES, INC., certain
Guarantors which are signatories thereto, certain Lenders which are signatories
thereto, and BANK OF MONTREAL, Chicago Branch, as Administrative Agent

 

Ladies and Gentlemen:

 

The undersigned, LTC Properties, Inc. (the “Borrower”), refers to the Credit Agreement, the terms
defined therein being used herein as therein defined, and hereby gives you
notice irrevocably, pursuant to Section 1.5 of the Credit Agreement, of
the Borrowing specified below:

 

1.      The Business Day
of the proposed Borrowing is
                      ,
        .

 

2.       The
aggregate amount of the proposed Borrowing is
$                            .

 

3.       The
Borrowing is being advanced under the Revolving  Credit.

 

4.       The
Borrowing is to be comprised of
$                      
of [Adjusted Base Rate] [Eurodollar]
Loans.

 

[5.       The duration of the Interest Period for the Eurodollar Loans included
in the Borrowing shall be
                        
months.]

 

The undersigned hereby certifies that the following
statements are true on the date hereof, and will be true on the date of the
proposed Borrowing, before and after giving effect thereto and to the
application of the proceeds therefrom:

 

(a)     the
representations and warranties of the Borrower contained in Section 6 of
the Credit Agreement are true and correct as though made on and as of such date
(except to the extent such representations and warranties relate to an earlier
date, in which case they are true and correct as of such date); and

 

 

(b)     no
Default or Event of Default has occurred and is continuing or would result from
such proposed Borrowing.

 

	
   

  	
  LTC PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  
	
   

  	
       Name

  	
   

  
	
   

  	
       Title

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  
	
   

  	
       Name

  	
   

  
	
   

  	
       Title

  	
   

  
					

 

2

 

EXHIBIT C

 

NOTICE OF
CONTINUATION/CONVERSION

 

Date: 
                        ,       

 

To:                  BANK OF MONTREAL, Chicago Branch, as Administrative
Agent for the Lenders parties to the Second Amended and Restated Credit
Agreement dated as of                   ,
2008 (as extended, renewed, amended or restated from time to time, the “Credit Agreement”), among LTC PROPERTIES, INC., certain
Guarantors which are signatories thereto, certain Lenders which are signatories
thereto, and BANK OF MONTREAL, Chicago Branch, as Administrative Agent

 

Ladies and Gentlemen:

 

The undersigned, LTC Properties, Inc. (the “Borrower”), refers to the Credit Agreement, the terms
defined therein being used herein as therein defined, and hereby gives you
notice irrevocably, pursuant to Section 1.5 of the Credit Agreement, of
the [conversion] [continuation] of the
Loans specified herein, that:

 

1.     The
conversion/continuation Date is
                    ,
        .

 

2.     The
aggregate amount of the Loans to be [converted] [continued]
is
$                            .

 

3.      The Loans are to be [converted into]
[continued as] [Eurodollar] [Adjusted Base Rate] Loans.

 

4.     [If applicable:]  The
duration of the Interest Period for the Loans included in the [conversion] [continuation] shall be
                  
months.

 

The undersigned hereby certifies that the following
statements are true on the date hereof, and will be true on the proposed
conversion/continuation date, before and after giving effect thereto and to the
application of the proceeds therefrom:

 

(a)     the
representations and warranties of the Borrower contained in Section 6 of
the Credit Agreement are true and correct as though made on and as of such date
(except to the extent such representations and warranties relate to an earlier
date, in which case they are true and correct as of such date); provided, however, that this condition shall not apply to
the conversion of an outstanding Eurodollar Loan to an Adjusted Base Rate Loan;
and

 

 

(b)     no
Default or Event of Default has occurred and is continuing, or would result
from such proposed [conversion]
[continuation].

 

	
   

  	
  LTC PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  
	
   

  	
       Name

  	
   

  
	
   

  	
       Title

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  
	
   

  	
       Name

  	
   

  
	
   

  	
       Title

  	
   

  
				

 

2

 

EXHIBIT D

 

NOTE

 

	
  U.S. $

  	
   

  	
   

  	
  ,

  

 

FOR VALUE RECEIVED, the undersigned, LTC PROPERTIES,
INC., a Maryland corporation  (the “Borrower”), hereby promises to pay to the order of
                                        
(the “Lender”) on the Termination Date of the
hereinafter defined Credit Agreement, at the principal office of Bank of
Montreal, Chicago Branch as Administrative Agent, in Chicago, Illinois, in
immediately available funds, the principal sum of
                                      
Dollars ($                    )
or, if less, the aggregate unpaid principal amount of all Loans made by the
Lender to the Borrower pursuant to the Credit Agreement, together with interest
on the principal amount of each Loan from time to time outstanding hereunder at
the rates, and payable in the manner and on the dates, specified in the Credit
Agreement.

 

This Note is one of the Notes referred to in the
Second Amended and Restated Credit Agreement dated as of                         ,
2008, among the Borrower, the Guarantors party thereto, the Lenders party
thereto, and Bank of Montreal, Chicago Branch, as Administrative Agent for the
Lenders (the “Credit Agreement”), and this
Note and the holder hereof are entitled to all the benefits provided for
thereby or referred to therein, to which Credit Agreement reference is hereby
made for a statement thereof.  All
defined terms used in this Note, except terms otherwise defined herein, shall
have the same meaning as in the Credit Agreement.  This Note shall be governed by and construed
in accordance with the internal laws of the State of New York.

 

Voluntary prepayments may be made hereon, certain
prepayments are required to be made hereon, and this Note may be declared due
prior to the expressed maturity hereof, all in the events, on the terms and in
the manner as provided for in the Credit Agreement.

 

The Borrower hereby waives demand, presentment,
protest or notice of any kind hereunder.

 

	
   

  	
  LTC PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   Name

  	
   

  
	
   

  	
   Title

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   Name

  	
   

  
	
   

  	
   Title

  	
   

  
						

 

 

EXHIBIT E

 

BORROWING BASE
CERTIFICATE

 

	
  To:

  	
  Bank of Montreal,
  Chicago Branch, as Administrative Agent under, and the Lenders party to, the
  Credit Agreement described below.

  
	
   

  	
   

  
	
   

  	
  Pursuant to the terms
  of the Second Amended and Restated Credit Agreement dated as of
                          , 2008,
  among us

  

(the “Credit Agreement”), we submit
this Borrowing Base Certificate to you and certify that the information set
forth below and on any attachments to this Certificate is true, correct and
complete as of the date of this Certificate.

 

	
  1.

  	
  Borrowing Base Value

  	
   

  	
  $                      

  
	
  2.

  	
  Line 1 multiplied by
  50%

  	
   

  	
  $                      

  
	
  3.

  	
  Unsecured Debt (other
  than Obligations)

  	
   

  	
  ($                      )

  
	
  4.

  	
  Borrowing Base (Line 2
  minus by Line 3 above)

  	
   

  	
  $                      

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The Borrower represents
  and warrants that the aggregate principal amount of Loans and
  L/C Obligations on the date hereof,

  
	
  including any Loans to
  be made or Letters of Credit to be issued on the date hereof, do not exceed
  the Borrowing Base set forth above.

  
	
   

  	
   

  
	
   

  	
  The foregoing
  certifications, together with the computations set forth in Schedule I
  hereto are made and delivered this

  
	
              
  day of
                                      
  20      .

  
					

 

	
   

  	
  LTC PROPERTIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   Name

  	
   

  
	
   

  	
   Title

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   Name

  	
   

  
	
   

  	
   Title

  	
   

  
					

 

 

SCHEDULE I

CALCULATIONS

 

 

EXHIBIT F

 

COMPLIANCE CERTIFICATE

 

	
  To:

  	
  Bank of Montreal,
  Chicago Branch, as Administrative Agent under, and the Lenders party to, the
  Credit Agreement described below

  

 

This Compliance Certificate is furnished to the
Administrative Agent and the Lenders pursuant to that certain Second Amended
and Restated Credit Agreement dated as of
                          , 2008,
among us (the “Credit Agreement”).  Unless otherwise defined herein, the terms
used in this Compliance Certificate have the meanings ascribed thereto in the
Credit Agreement.

 

THE UNDERSIGNED HEREBY CERTIFIES THAT:

 

1.               I
am the duly elected
                        
of
                                                                      ;

 

2.               I
have reviewed the terms of the Credit Agreement and I have made, or have caused
to be made under my supervision, a detailed review of the transactions and
conditions of the Borrower and its Subsidiaries during the accounting period
covered by the attached financial statements;

 

3.               The
examinations described in paragraph 2 did not disclose, and I have no
knowledge of, the existence of any condition or the occurrence of any event
which constitutes a Default or Event of Default during or at the end of the
accounting period covered by the attached financial statements or as of the
date of this Compliance Certificate, except as set forth below;

 

4.               The
financial statements required by Section 8.5 of the Credit Agreement and
being furnished to you concurrently with this Compliance Certificate are true,
correct and complete as of the date and for the periods covered thereby; and

 

5.               The
Schedule I hereto sets forth financial data and computations evidencing
the Borrower’s compliance with certain covenants of the Credit Agreement, all
of which data and computations are, to the best of my knowledge, true, complete
and correct and have been made in accordance with the relevant Sections of the
Credit Agreement.

 

Described below are the exceptions, if any, to
paragraph 3 by listing, in detail, the nature of the condition or event,
the period during which it has existed and the action which the Borrower has
taken, is taking, or proposes to take with respect to each such condition or
event:

 

 

The foregoing certifications, together with the
computations set forth in Schedule I hereto and the financial statements
delivered with this Certificate in support hereof, are made and delivered this
             day of
                                    
20      .

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   Name

  	
   

  
	
   

  	
   Title

  	
   

  
				

 

2

 

SCHEDULE I

TO COMPLIANCE
CERTIFICATE

 

COMPLIANCE CALCULATIONS

FOR SECOND AMENDED AND
RESTATED CREDIT AGREEMENT DATED AS OF 

                              , 2008

 

CALCULATIONS AS OF
                          ,      

 

	
  A.

  	
  Maximum Total Indebtedness to Total Asset Value
  (Section 8.21(a))

  	
   

  	
   

  
	
   

  	
  1.

  	
  Total Indebtedness

  	
   

  	
  $               

  
	
   

  	
  2.

  	
  Total Asset Value

  	
   

  	
                 

  
	
   

  	
  3.

  	
  Ratio of Line A1 to A2

  	
   

  	
      :1.0

  
	
   

  	
  4.

  	
  Line A3 ratio must not exceed

  	
   

  	
  .50:1.0

  
	
   

  	
  5.

  	
  The Borrower is in compliance (circle yes or no)

  	
   

  	
  yes/no

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
  Maximum Secured Debt to Total Asset Value
  (Section 8.21(b))

  	
   

  	
   

  
	
   

  	
  1.

  	
  Secured Debt

  	
   

  	
  $               

  
	
   

  	
  2.

  	
  Total Asset Value

  	
   

  	
                 

  
	
   

  	
  3.

  	
  Ratio of Line B1 to B2

  	
   

  	
      :1.0

  
	
   

  	
  4.

  	
  Line B3 ratio must not exceed

  	
   

  	
  .35:1.0

  
	
   

  	
  5.

  	
  The Borrower is in compliance (circle yes or no)

  	
   

  	
  yes/no

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C.

  	
  Minimum EBITDA to Interest Expense Ratio
  (Section 8.21(c))

  	
   

  	
   

  
	
   

  	
  1.

  	
  Net Income for the last 4 quarters

  	
   

  	
  $               

  
	
   

  	
  2. 

  	
  Depreciation and Amortization Expense for last
  4 quarters

  	
   

  	
                 

  
	
   

  	
  3.

  	
  Interest Expense for last 4 quarters

  	
   

  	
                 

  
	
   

  	
  4.

  	
  Income Tax Expense for last 4 quarters

  	
   

  	
                 

  
	
   

  	
  5.

  	
  Extraordinary, unrealized or non-recurring
  losses, including impairment charges and reserves for the last
  4 quarters

  	
   

  	
                 

  
	
   

  	
  6.

  	
  Sum of Lines C1 through C5

  	
   

  	
                 

  

 

 

	
   

  	
  7.

  	
  The funds received by the Borrower’s
  Subsidiaries rent by which are reserved for capital expenses for the
  last 4 quarters

  	
   

  	
                 

  
	
   

  	
  8.

  	
  Unrealized gains of the sale of assets for the
  last 4 quarters

  	
   

  	
                 

  
	
   

  	
  9.

  	
  Income tax benefits of the last 4 quarters

  	
   

  	
                 

  
	
   

  	
  10.

  	
  Sum of Lines C7 through C9

  	
   

  	
                 

  
	
   

  	
  11.

  	
  Line 6 minus Line 10 (“EBITDA”)

  	
   

  	
                 

  
	
   

  	
  12.

  	
  Interest Expense

  	
   

  	
   

  
	
   

  	
  13.

  	
  Ratio of Line C11 to C12

  	
   

  	
      :1.0

  
	
   

  	
  14.

  	
  Line C13 ratio shall not be less than

  	
   

  	
  2.50:1.0

  
	
   

  	
  15.

  	
  The Borrower is in compliance (circle yes or no)

  	
   

  	
  yes/no

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D.

  	
  Minimum EBITDA to Fixed Charges Ratio
  (Section 8.21(d))

  	
   

  	
   

  
	
   

  	
  1.

  	
   

  	
  EBITDA

  	
   

  	
  $               

  
	
   

  	
  2.

  	
   

  	
  Fixed Charges

  	
   

  	
   

  
	
   

  	
  3.

  	
   

  	
  Ratio of Line D1 to D2

  	
   

  	
      :1.0

  
	
   

  	
  4.

  	
   

  	
  Line D3 ratio shall not be less than

  	
   

  	
  1.50:1.0

  
	
   

  	
  5.

  	
   

  	
  The Borrower is in compliance (circle yes or no)

  	
   

  	
  yes/no

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  E.

  	
   

  	
  Maximum Secured Recourse Debt to Total Asset
  Value Ratio (Section 8.21(e))

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
   

  	
  Secured Recourse Debt

  	
   

  	
  $               

  
	
   

  	
   

  	
  2.

  	
   

  	
  Total Asset Value

  	
   

  	
  $               

  
	
   

  	
   

  	
  3.

  	
   

  	
  Ratio of Line E1 to Line E2

  	
   

  	
      :1.0

  
	
   

  	
   

  	
  4.

  	
   

  	
  Line E3 shall not exceed

  	
   

  	
  .10:1.0

  
	
   

  	
   

  	
  5.

  	
   

  	
  The Borrower is in compliance (circle yes or no)

  	
   

  	
  yes/no

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  F.

  	
   

  	
  Tangible Net Worth (Section 8.21(f))

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
   

  	
  Tangible Net Worth

  	
   

  	
  $               

  
	
   

  	
   

  	
  2.

  	
   

  	
  Line F1 shall not be less than

  	
   

  	
  $               

  
	
   

  	
   

  	
  3.

  	
   

  	
  The Borrower is in compliance (circle yes or no)

  	
   

  	
  yes/no

  
								

 

2

 

	
  G.

  	
   

  	
  Floating Rate Debt (Section 8.21(g))

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
   

  	
  Total Asset Value

  	
   

  	
  $                  

  
	
   

  	
   

  	
  2.

  	
   

  	
  Total unhedged Floating Rate Debt outstanding

  	
   

  	
  $                  

  
	
   

  	
   

  	
  3.

  	
   

  	
  Percentage of unhedged Floating Rate Debt
  outstanding to Total Asset Value

  	
   

  	
  %

  
	
   

  	
   

  	
  4.

  	
   

  	
  Line G3 shall not exceed

  	
   

  	
  40

  	
  %

  
	
   

  	
   

  	
  5.

  	
   

  	
  The Borrower is in compliance (circle yes or no)

  	
   

  	
  yes/no

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  H.

  	
   

  	
  Minimum Borrowing Base Value
  (Section 8.22(b))

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
   

  	
  Borrowing Base Value

  	
   

  	
  $                  

  
	
   

  	
   

  	
  2.

  	
   

  	
  Line H1 shall not be less than

  	
   

  	
  $50,000,000

  
	
   

  	
   

  	
  3.

  	
   

  	
  The Borrower is in compliance (circle yes or no)

  	
   

  	
  yes/no

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I.

  	
   

  	
  Minimum Eligible Property NOI to Credit Facility
  Debt Service Ratio (Section 8.22(c))

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
   

  	
  Eligible Property NOI

  	
   

  	
  $                  

  
	
   

  	
   

  	
  2.

  	
   

  	
  pari passu Unsecured Debt Service plus Credit
  Facility Debt Service

  	
   

  	
  $                  

  
	
   

  	
   

  	
  3.

  	
   

  	
  Ratio of Line I1 to I2

  	
   

  	
             :1.0

  
	
   

  	
   

  	
  4.

  	
   

  	
  Line I3 ratio shall not be less than

  	
   

  	
        2.25:1.0

  
	
   

  	
   

  	
  5.

  	
   

  	
  The Borrower is in compliance (circle yes or no)

  	
   

  	
         yes/no

  

 

3

 

EXHIBIT G

 

ADDITIONAL GUARANTOR
SUPPLEMENT

 

                            ,      

 

Bank
of Montreal, Chicago Branch, as Administrative Agent for the Lenders named in
the Second Amended and Restated Credit Agreement dated as of
                      ,
2008, among LTC Properties, Inc., as Borrower, the Guarantors
referred to therein, the Lenders from time to time party thereto, and the
Administrative Agent (the “Credit Agreement”)

 

Ladies
and Gentlemen:

 

Reference is made to the Credit Agreement described
above.  Terms not defined herein which
are defined in the Credit Agreement shall have for the purposes hereof the
meaning provided therein.

 

The undersigned, [name of Subsidiary
Guarantor], a [jurisdiction of
incorporation or organization] hereby elects to be a “Guarantor” for all purposes of the Credit Agreement,
effective from the date hereof.  The
undersigned confirms that the representations and warranties set forth in Section 6
of the Credit Agreement are true and correct as to the undersigned as of the
date hereof and the undersigned shall comply with each of the covenants set
forth in Section 8 of the Credit Agreement applicable to it.

 

Without limiting the generality of the foregoing, the
undersigned hereby agrees to perform all the obligations of a Guarantor under,
and to be bound in all respects by the terms of, the Credit Agreement,
including without limitation Section 12 thereof, to the same extent and
with the same force and effect as if the undersigned were a signatory party
thereto.

 

The undersigned acknowledges that this Agreement shall
be effective upon its execution and delivery by the undersigned to the
Administrative Agent, and it shall not be necessary for the Administrative
Agent or any Lender, or any of their Affiliates entitled to the benefits
hereof, to execute this Agreement or any other acceptance hereof.  This Agreement shall be construed in accordance
with and governed by the internal laws of the State of New York.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [NAME OF SUBSIDIARY GUARANTOR]

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   Name

  	
   

  
	
   

  	
   Title

  	
   

  
				

 

 

EXHIBIT H

 

ASSIGNMENT AND
ACCEPTANCE

 

Dated
                      ,   

 

Reference is made to the Second Amended and Restated
Credit Agreement dated as of
                        , 2008
(the “Credit Agreement”) among LTC Properties, Inc.,
the Guarantors party thereto, the Lenders party thereto, and Bank of Montreal,
Chicago Branch, as Administrative Agent for the Lenders (the “Administrative Agent”). 
Terms defined in the Credit Agreement are used herein with the same
meaning.

 

                                                                                                            
(the “Assignor”) and
                                                  
(the “Assignee”) agree as follows:

 

1.               The Assignor hereby
sells and assigns to the Assignee, and the Assignee hereby purchases and
assumes from the Assignor, a               %
interest in and to all of the Assignor’s rights and obligations under the
Credit Agreement as of the Effective Date (as defined below), including,
without limitation, such percentage interest in the Assignor’s Commitments as
in effect on the Effective Date and the Loans, if any, owing to the Assignor on
the Effective Date and the Assignor’s Percentage of any outstanding L/C
Obligations.

 

2.               The Assignor (i) represents
and warrants that as of the date hereof (A) its Credit Commitment is
$                              ,
(B) the aggregate outstanding principal amount of Loans made by it under
the Credit Agreement that have not been repaid is
$                      ,
and (C) the aggregate principal amount of Assignor’s Percentage of
outstanding L/C Obligations is
$                      ;
(ii) represents and warrants that it is the legal and beneficial owner of
the interest being assigned by it hereunder and that such interest is free and
clear of any adverse claim, lien, or encumbrance of any kind; (iii) makes
no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the
Credit Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement or any other
instrument or document furnished pursuant thereto; and (iv) makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the Borrower or any Subsidiary or the performance or
observance by the Borrower or any Subsidiary of any of their respective
obligations under the Credit Agreement or any other instrument or document
furnished pursuant thereto.

 

3.               The Assignee (i) confirms
that it has received a copy of the Credit Agreement, together with copies of
the most recent financial statements delivered to the Lenders pursuant to Section 8.5(b) and
(c) thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to 

 

 

enter into this Assignment and Acceptance;
(ii) agrees that it will, independently and without reliance upon the
Administrative Agent, the Assignor or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Credit
Agreement; (iii) appoints and authorizes the Administrative Agent to take
such action as Administrative Agent on its behalf and to exercise such powers
under the Credit Agreement and the other Loan Documents as are delegated to the
Administrative Agent by the terms thereof, together with such powers as are
reasonably incidental thereto; (iv) agrees that it will perform in
accordance with their terms all of the obligations which by the terms of the
Credit Agreement are required to be performed by it as a Lender; and (v) specifies
as its lending office (and address for notices) the offices set forth beneath
its name on the signature pages hereof.

 

4.               As consideration
for the assignment and sale contemplated in Annex 1 hereof, the Assignee
shall pay to the Assignor on the Effective Date in Federal funds an amount
equal to
$                                (1).  It is understood that commitment and/or
letter of credit fees accrued to the Effective Date with respect to the
interest assigned hereby are for the account of the Assignor and such fees
accruing from and including the date hereof are for the account of the
Assignee.  Each of the Assignor and the
Assignee hereby agrees that if it receives any amount under the Credit
Agreement which is for the account of the other party hereto, it shall receive
the same for the account of such other party to the extent of such other party’s
interest therein and shall promptly pay the same to such other party.

 

5.               The effective date
for this Assignment and Acceptance shall be
                      
(the “Effective Date”).  Following the execution of this Assignment
and Acceptance, it will be delivered to the Administrative Agent for acceptance
and recording by the Administrative Agent and, if required, the Borrower.

 

6.               Upon such
acceptance and recording, as of the Effective Date, (i) the Assignee shall
be a party to the Credit Agreement and, to the extent provided in this
Assignment and Acceptance, have the rights and obligations of a Lender
thereunder and (ii) the Assignor shall, to the extent provided in this
Assignment and Acceptance, relinquish its rights and be released from its
obligations under the Credit Agreement.

 

7.               Upon such
acceptance and recording, from and after the Effective Date, the Administrative
Agent shall make all payments under the Credit Agreement in respect of the
interest assigned hereby (including, without limitation, all payments of
principal, interest and commitment fees with respect thereto) to the Assignee.  The Assignor and Assignee shall make all
appropriate adjustments in payments under the Credit Agreement for periods
prior to the Effective Date directly between themselves.

 

	
  *

  	
   

  	
  Amount should combine principal together with
  accrued interest and breakage compensation, if any, to be paid by the
  Assignee, net of any portion of any upfront fee to be paid by the Assignor to
  the Assignee. It may be preferable in an appropriate case to specify these
  amounts generically or by formula rather than as a fixed sum.

  

 

2

 

8.     In accordance with Section 13.12 of the Credit Agreement,
the Assignor and the Assignee request and direct that the Administrative Agent
prepare and cause the Borrower to execute and deliver to the Assignee the
relevant Notes payable to the Assignee in the amount of its Commitments and new
Notes to the Assignor in the amount of its Commitments after giving effect to
this assignment.

 

9.     This Assignment and Acceptance shall be governed by, and
construed in accordance with, the laws of the State of Illinois.

 

	
   

  	
  [Assignor Lender]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   Name

  	
   

  
	
   

  	
   Title

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Assignee Lender]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   Name

  	
   

  
	
   

  	
   Title

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Lending office (and address for notices):

  
				

 

Accepted and consented this 

         day of

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
  Name

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  
					

 

Accepted and consented to by the Administrative

  Agent and L/C
Issuer this        day of

 

BANK OF MONTREAL, Chicago Branch, as

  Administrative
Agent and L/C Issuer

 

 

	
  By

  	
   

  	
   

  
	
   

  	
  Name

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  
					

 

3

 

ANNEX I

TO ASSIGNMENT AND
ACCEPTANCE

 

	
  PRINCIPAL AMOUNT

  	
   

  	
  TYPE OF LOAN

  	
   

  	
  INTEREST RATE

  	
   

  	
  MATURITY DATE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT I

 

OPINION OF COUNSEL

 

 

EXHIBIT J

 

COMMITMENT AMOUNT
INCREASE REQUEST

 

                         ,     

 

	
  To:

  	
  Bank of Montreal, Chicago Branch, as Administrative
  Agent for the Lenders parties to the Second Amended and Restated Credit
  Agreement dated as of
                          ,
  2008 (as extended, renewed, amended or restated from time to time, the “Credit Agreement”), among LTC Properties, Inc., the
  Guarantors party thereto, the Lenders party thereto, and Bank of Montreal,
  Chicago Branch, as Administrative Agent.

  

 

Ladies
and Gentlemen:

 

The undersigned, LTC Properties, Inc. (the “Borrower”) hereby refers to the Credit Agreement and requests
that the Administrative Agent consent to an increase in the aggregate
Commitments (the “Commitment Amount Increase”), in
accordance with Section 1.14 of the Credit Agreement, to be effected by [an increase in the Commitment of [name of existing Lender] [the
addition of [name of new Lender] (the “New Lender”)
as a Lender under the terms of the Credit Agreement].  Capitalized terms used herein without
definition shall have the same meanings herein as such terms have in the Credit
Agreement.

 

After giving effect to such Commitment Amount
Increase, the Revolving Credit Commitment of the [Lender]
[New Lender] shall be
$                          .

 

[Include paragraphs 1-4 for a New Lender]

 

1.     The New Lender hereby
confirms that it has received a copy of the Loan Documents and the exhibits
related thereto, together with copies of the documents which were required to
be delivered under the Credit Agreement as a condition to the making of the
Loans and other extensions of credit thereunder.  The New Lender acknowledges and agrees that
it has made and will continue to make, independently and without reliance upon
the Administrative Agent or any other Lender and based on such documents and
information as it has deemed appropriate, its own credit analysis and decisions
relating to the Credit Agreement.  The
New Lender further acknowledges and agrees that the Administrative Agent has
not made any representations or warranties about the credit worthiness of the
Borrower or any other party to the Credit Agreement or any other Loan Document
or with respect to the legality, validity, sufficiency or enforceability of the
Credit Agreement or any other Loan Document or the value of any security
therefor.

 

2.     Except as otherwise
provided in the Credit Agreement, effective as of the date of acceptance hereof
by the Administrative Agent, the New Lender (i) shall be deemed
automatically to have become a party to the Credit Agreement and have all the
rights and 

 

 

obligations of a “Lender” under
the Credit Agreement as if it were an original signatory thereto and (ii) agrees
to be bound by the terms and conditions set forth in the Credit Agreement as if
it were an original signatory thereto.

 

 3.     The
New Lender shall deliver to the Administrative Agent an Administrative Questionnaire.

 

 [4.     The New Lender has delivered, if appropriate, to the Borrower and the
Administrative Agent (or is delivering to the Borrower and the Administrative
Agent concurrently herewith) the tax forms referred to in Section 13.1 of
the Credit Agreement.]*

 

THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACTUAL
OBLIGATION UNDER, AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK.

 

The Commitment Amount Increase shall be effective when
the executed consent of the Administrative Agent is received or otherwise in
accordance with Section 1.14 of the Credit Agreement, but not in any case
prior to
                                      ,
        .  It shall be a condition to the effectiveness
of the Commitment Amount Increase that all expenses referred to in Section 1.14
of the Credit Agreement shall have been paid.

 

The Borrower hereby certifies that no Default or Event
of Default has occurred and is continuing.

 

	
  *

  	
  Insert bracketed paragraph if New Lender is organized
  under the law of a jurisdiction other than the United States of America or a
  state thereof.

  

 

2

 

Please indicate the Administrative Agent’s consent to
such Commitment Amount Increase by signing the enclosed copy of this letter in
the space provided below.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  LTC PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NEW OR EXISTING LENDER
  INCREASING 

  COMMITMENTS]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
  Title

  	
   

  
							

 

The undersigned hereby
consents on 

this      day of
                          ,
           

to the above-requested Commitment 

Amount Increase.

 

BANK OF MONTREAL, 

as Administrative Agent

 

 

	
  By

  	
   

  	
   

  
	
   

  	
  Name

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  
					

 

3

 

SCHEDULE 1.0

 

COMMITMENTS

 

	
  NAME OF LENDER

  	
   

  	
  CREDIT COMMITMENT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  BMO Capital
  Markets Financing, Inc.

  	
   

  	
  $

  	
  30,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Key Bank
  National Association

  	
   

  	
  $

  	
  30,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Raymond James
  Bank, FSB

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Royal Bank of
  Canada

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  80,000,000

  	
   

  

 

 

SCHEDULE 1.1

 

INITIAL PROPERTIES,
INITIAL INVESTMENT AMOUNT

AND INITIAL BORROWING BASE VALUE

 

 

SCHEDULE 6.2

 

SUBSIDIARIES

 

 

SCHEDULE 6.26

 

SIGNIFICANT LEASES

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