Document:

Exhibit 10.1

EXHIBIT 10.1

[Execution Version]

ASSET PURCHASE AGREEMENT

by and among

US FARM & RANCH SUPPLY COMPANY, INC.

(as “Parent”),

CHANNEL 55/42 OPERATING, LP,

USFR TOWER OPERATING, LP

USFR EQUITY DRIVE PROPERTY LLC

and

HUMANITY INTERESTED MEDIA, L.P.

(collectively, “Seller”)

and

SPANISH BROADCASTING SYSTEM, INC.

(“Buyer”)

Dated as of May 2, 2011

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	PURCHASE AND SALE OF PROPERTIES AND ASSETS
	 	 	6	 
	2.1 Purchase and Sale
	 	 	6	 
	2.2 Excluded Assets
	 	 	7	 
	2.3 Liabilities
	 	 	8	 
	2.4 Purchase Price, Payment and Allocation
	 	 	8	 
	2.5 Adjustments
	 	 	10	 
	2.6 Closing
	 	 	10	 
	2.7 Compliance with Bulk Sales
	 	 	10	 
	 
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES OF SELLER
	 	 	11	 
	3.1 Corporate Status
	 	 	11	 
	3.2 No Options
	 	 	11	 
	3.3 Entity Action
	 	 	11	 
	3.4 No Defaults
	 	 	11	 
	3.5 Contracts, Leases, Agreements and Other Commitments
	 	 	12	 
	3.6 Taxes
	 	 	12	 
	3.7 Licenses
	 	 	12	 
	3.8 Compliance with Laws; Additional Regulatory Matters
	 	 	13	 
	3.9 Approvals and Consents
	 	 	13	 
	3.10 Condition of Assets
	 	 	14	 
	3.11 Insolvency Proceedings
	 	 	14	 
	3.12 Litigation
	 	 	14	 
	3.13 Intangible Property
	 	 	14	 
	3.14 Brokers
	 	 	15	 
	3.15 Conflicting Interests
	 	 	15	 
	3.16 Cable Matters
	 	 	15	 
	3.17 Digital Broadcasting
	 	 	15	 
	 
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES OF BUYER
	 	 	16	 
	4.1 Qualification as a Broadcast Licensee
	 	 	16	 
	4.2 Status
	 	 	16	 
	4.3 No Defaults
	 	 	16	 
	4.4 Entity Action
	 	 	17	 
	4.5 Brokers
	 	 	17	 
	4.6 Insolvency Proceedings
	 	 	17	 
	4.7 Litigation
	 	 	17	 
	4.8 Financial Capability
	 	 	17	 

 

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	 	 	Page	 
	 
	COVENANTS OF SELLER PENDING THE CLOSING
	 	 	17	 
	5.1 Operations of the Business
	 	 	17	 
	5.2 Prohibited Actions
	 	 	18	 
	5.3 Access to Facilities, Files and Records
	 	 	19	 
	5.4 Representations and Warranties
	 	 	19	 
	5.5 Consents
	 	 	19	 
	5.6 Notice of Proceedings
	 	 	19	 
	5.7 Consummation of Agreement
	 	 	19	 
	5.8 Applications for FCC Consents
	 	 	20	 
	5.9 Publicity
	 	 	20	 
	5.10 Taxes
	 	 	20	 
	5.11 Confidentiality
	 	 	21	 
	 
	 	 	 	 
	COVENANTS OF BUYER PENDING THE CLOSING
	 	 	21	 
	6.1 Consummation of Agreement
	 	 	21	 
	6.2 Notice of Proceedings
	 	 	21	 
	6.3 Representations and Warranties
	 	 	21	 
	6.4 Publicity
	 	 	22	 
	6.5 Contracts Not to be Assumed
	 	 	22	 
	6.6 Confidentiality
	 	 	22	 
	6.7 Consents
	 	 	22	 
	 
	 	 	 	 
	CONDITIONS TO THE OBLIGATIONS OF SELLER
	 	 	23	 
	7.1 Representations, Warranties and Covenants
	 	 	23	 
	7.2 Proceedings
	 	 	23	 
	7.3 Deliveries
	 	 	23	 
	7.4 Authorizations
	 	 	23	 
	7.5 Other Consents
	 	 	23	 
	 
	 	 	 	 
	CONDITIONS TO THE OBLIGATIONS OF BUYER
	 	 	24	 
	8.1 Representations, Warranties and Covenants
	 	 	24	 
	8.2 Proceedings
	 	 	24	 
	8.3 Liens Released
	 	 	24	 
	8.4 Deliveries
	 	 	24	 
	8.5 Other Consents
	 	 	24	 
	8.6 Authorizations
	 	 	24	 
	 
	 	 	 	 
	ITEMS TO BE DELIVERED AT THE CLOSING
	 	 	25	 
	9.1 Deliveries by Seller
	 	 	25	 
	9.2 Deliveries by Buyer
	 	 	25	 
	 
	 	 	 	 
	SURVIVAL; INDEMNIFICATION
	 	 	26	 
	10.1 Survival
	 	 	26	 
	10.2 Basic Provision
	 	 	26	 
	10.3 Definition of Deficiencies
	 	 	27	 
	10.4 Procedures for Establishment of Deficiencies
	 	 	27	 
	10.5 Limitation on Deficiencies
	 	 	28	 

 

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	 	 	Page	 
	 
	MISCELLANEOUS
	 	 	29	 
	11.1 Termination of Agreement
	 	 	29	 
	11.2 Liabilities on Termination or Breach
	 	 	30	 
	11.3 Expenses
	 	 	30	 
	11.4 Remedies Cumulative
	 	 	30	 
	11.5 Preservation of Records
	 	 	30	 
	11.6 Non-Assignable Contracts
	 	 	30	 
	11.7 Further Assurances
	 	 	31	 
	11.9 Employees
	 	 	31	 
	 
	 	 	 	 
	GENERAL PROVISIONS
	 	 	31	 
	12.1 Successors and Assigns
	 	 	31	 
	12.2 Amendments; Waivers
	 	 	31	 
	12.3 Notices
	 	 	32	 
	12.4 Captions
	 	 	33	 
	12.5 Governing Law; Venue
	 	 	33	 
	12.6 Entire Agreement
	 	 	33	 
	12.7 Execution: Counterparts and Facsimile
	 	 	33	 
	12.8 Gender and Tense
	 	 	33	 
	12.9 Third-Party Beneficiaries
	 	 	33	 
	12.10 No Party Deemed Drafter
	 	 	34	 
	12.11 Severability
	 	 	34	 
	12.12 Waiver of Jury Trial
	 	 	34	 

 

iii

 

LIST OF SCHEDULES AND EXHIBITS

	 	 	 

	Schedules
	 	 
	 
	 	 
	2.1(a)

	 	Tangible Personal Property
	2.1(b)

	 	Licenses and Authorizations
	2.1(c)

	 	Agreements for Sale of Time
	2.1(d)

	 	Contracts
	2.1(e)

	 	Intangibles
	2.1(g)

	 	Claims
	2.1(j)

	 	Government Approvals
	2.2(g)

	 	Non-Transferred Claims
	3.5

	 	Assumed Contract Defaults
	3.6

	 	Taxes
	3.7

	 	Licenses
	3.8(a)

	 	Compliance with Law
	3.8(b)

	 	Compliance with Authorizations
	3.9

	 	Approvals and Consents
	3.10(a)

	 	All Assets
	3.10(c)

	 	Good Title
	3.12

	 	Litigation
	3.13

	 	Intangible Property
	3.14

	 	Brokers
	3.15

	 	Conflicting Interests
	3.16

	 	Cable Matters
	3.17

	 	Digital Broadcasting
	4.1

	 	Qualification as a Broadcast Licensee
	4.3

	 	Buyer Defaults
	4.7

	 	Litigation
	5.5

	 	Material Consents
	 
	 	 
	Exhibits
	 	 
	 
	 	 
	Exhibit A

	 	Promissory Note
	Exhibit B

	 	New Lease
	Exhibit C

	 	Escrow Agreement
	Exhibit D

	 	Security Agreement

 

iv

 

ASSET PURCHASE AGREEMENT

This ASSET PURCHASE AGREEMENT (this “Agreement”) is entered into as of May 2, 2011 by and
among CHANNEL 55/42 OPERATING, LP, a Texas limited partnership (“Operating Seller”), USFR TOWER
OPERATING, LP, a Texas limited partnership (“Asset Seller”), HUMANITY INTERESTED MEDIA, L.P., a
Texas limited partnership (“License Seller”), USFR EQUITY DRIVE PROPERTY LLC, a Texas limited
liability company (“Equipment Seller” and, collectively with Operating Seller, Asset Seller and
License Seller, “Seller”), and solely for purposes of Sections 3.1, 3.3, 3.4 and Article 10, US
FARM & RANCH SUPPLY COMPANY, INC., a Texas corporation (“Parent”), and SPANISH BROADCASTING SYSTEM,
INC., a Delaware corporation (“Buyer”).

RECITALS

A. License Seller is the licensee of the following television broadcast station:

	 	 	 	 	 	 	 	 	 
	 	 	Community of	 	 	 	 	 
	Station	 	License/Territory	 	Facility ID No.	 	 	Channel
	 
	KTBU (TV)

	 	Conroe, TX
	 	 	28234	 	 	Digital 42
(Virtual Channel 55)

together with any and all other subsequent channels, whether primary or secondary, issued by the
Federal Communications Commission (the “FCC”) to Seller with respect to the station listed above
(collectively, the “Station”). Seller operates the Station pursuant to certain licenses,
authorizations and approvals, including associated broadcast auxiliary authorizations issued by the
FCC.

B. Seller desires to sell, assign and transfer to Buyer and Buyer desires to purchase, the
Station, the Authorizations and certain of the assets owned by Seller and used in the operations of
the Station and described in more detail below and, all under the terms and conditions described
herein.

C. Buyer and Seller are executing the Escrow Agreement contemporaneously with this Agreement

NOW, THEREFORE, in consideration of the premises and the mutual promises, representations,
warranties and covenants herein contained, the receipt and sufficiency of which is hereby
acknowledged, the parties agree as follows:

 

 

ARTICLE 1

DEFINITIONS

“Acquired Tangible Personal Property” has the meaning set forth in Section 2.1(a).

“Acquired Intangible Property” has the meaning set forth in Section 2.1(e).

“Affiliate” of any Person means any other Person that directly or indirectly, through one or
more intermediaries, controls, is controlled by, or is under common control with, such Person. The
term “control” (including the terms “controlled by” and “under common control with”) means the
possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities, by contract or
otherwise.

“Agreement” has the meaning set forth in the first paragraph of this Agreement.

“Asset Seller” has the meaning set forth in the first paragraph of this Agreement.

“Assets” has the meaning set forth in Section 2.1.

“Assumed Contract” has the meaning set forth in Section 2.1(d).

“Assumed Liabilities” has the meaning set forth in Section 2.3(b).

“Authorizations” has the meaning set forth in Section 3.7.

“Business Day” means any day excluding a Saturday, a Sunday and any day that is a legal
holiday under the Laws of the United States or is a day on which banking institutions located in
New York City, New York are authorized or required by Law to close.

“Buyer” has the meaning set forth in the first paragraph of this Agreement.

“Buyer’s Disclosure Schedule” has the meaning set forth in Article 4.

“Buyer Indemnitees” has the meaning set forth in Section 10.2(a).

“Charter Documents” means (i) in the case of a corporation, the certificate of incorporation
and by-laws of such corporation (ii) in the case of a partnership, the certificate of partnership
and partnership agreement and (iii) in the case of a limited liability company, the articles of
organization and operating agreement of such limited liability company, in each case including the
equivalent documents in the jurisdiction of such entities incorporation, formation or organization.

“Closing” has the meaning set forth in Section 2.6.

“Closing Date” has the meaning set forth in Section 2.6.

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

“Communications Act” has the meaning set forth in Section 3.7.

 

2

 

“Communication Laws” has the meaning set forth in Section 3.7.

“Contest Notice” has the meaning set forth in Section 10.4(b).

“Contract” means any unexpired agreement, arrangement, commitment or understanding, written or
oral, express or implied.

“Copyrights” means copyrights and mask works, including all renewals and extensions thereof,
copyright registrations and applications for registration thereof and non-registered copyrights.

“Deficiencies” has the meaning set forth in Section 10.3.

“Deposit” has the meaning set forth in Section 2.4(b).

“Disclosure Schedule” has the meaning set forth in Article 3.

“Effective Time” has the meaning set forth in Section 2.5(a).

“Excluded Assets” has the meaning set forth in Section 2.2.

“Escrow Agent” has the meaning set forth in Section 2.4(b).

“Escrow Agreement” means that certain agreement attached hereto as Exhibit C.

“Escrow Property” has the meaning set forth in Section 2.4(b).

“Excluded Contracts” has the meaning set forth in Section 2.2(e).

“Excluded Liabilities” has the meaning set forth in Section 2.3(d).

“FCC” has the meaning set forth in Recital A.

“FCC Application” has the meaning set forth in Section 5.8.

“FCC Order” means the order of the FCC consenting to the assignment of all Authorizations to
Buyer without any conditions that would restrict, limit, increase the cost or burden of or
otherwise adversely affect or impair, in any material respect, the right of Seller or Buyer to the
ownership, use, control, enjoyment or operation of the Station or the proceeds therefrom.

“Final” means an order of a governmental authority, or the failure of a governmental authority
to act when required by law to prevent a proposed action, which creates rights (i) which are
effective, (ii) with respect to which no appeal, request for stay, request for reconsideration or
other request for review is pending, (iii) with respect to which the time for appeal,
requesting a stay, requesting reconsideration or requesting other review has expired, and (iv)
which cannot be set aside sua sponte.

“Final Allocation” has the meaning set forth in Section 2.4(d).

 

3

 

“Final Closing Date” has the meaning set forth in Section 11.1(b).

“Government Agency” has the meaning as set forth in Section 3.8(a).

“Income Tax” means any federal, state, local, or foreign income tax, including any interest,
penalty, or addition thereto, whether disputed or not.

“Indemnifying Party” has the meaning set forth in Section 10.2.

“Indemnitees” has the meaning set forth in Section 10.4(a).

“Intangible Property” means intangible personal property of any kind or description,
including, without limitation, intellectual property, trademarks, trade names, trade secrets, call
letters, service marks, franchises, patents, jingles, slogans, logotypes and commercials.

“IRS” means the Internal Revenue Service.

“Knowledge” means, (i) for Seller, actual knowledge after due inquiry of Donna White, Gregory
L. Brown and Erik Peterson and (ii) for Buyer, actual knowledge after due inquiry of Raul Alarcon,
Jr. and Joseph A. Garcia.

“Law” means any statute, law, common law, ordinance, regulation, rule, code, injunction,
judgment, decree or order of any Governmental Agency.

“Legal Expenses” shall mean any and all fees (whether of attorneys, accountants or other
professionals), costs and expenses of any kind reasonably incurred by any Person identified herein
and its counsel in investigating, preparing for, defending against, or providing evidence,
producing documents or taking other action with respect to any threatened or asserted claim.

“License Seller” has the meaning set forth in the first paragraph of this Agreement.

“Material Consent” means a third party consent under a Contract required in order to assign
the Assumed Contract pursuant to this Agreement that is agreed by Buyer and Seller to be material
to the operation of the Station and is set forth on Schedule 5.5.

“MVPDs” has the meaning set forth in Section 3.16.

“New Lease” has the meaning set forth in Section 9.1(e).

“Non-Material Contracts” means all Contracts of Seller that (i) do not, by their respective
terms, require Seller to pay, or entitle Seller to receive, in excess of $25,000 during any twelve
month period or (ii) may be terminated by Seller, without penalty, on thirty (30) days or less
notice.

“Operating Seller” has the meaning set forth in the first paragraph of this Agreement.

 

4

 

“Oral Contract” means any oral, express or implied Contracts of Seller.

“Ordinary Course of Business” means the ordinary course of business consistent with Seller’s
past custom and practice (including with respect to quantity and frequency) and consistent with the
need of reasonably permitting a change to the Station’s programming at Closing.

“Parent” has the meaning set forth in the first paragraph of this Agreement.

“Permitted Affiliate Loan” means a loan provided by Parent, a Seller or one of their
Affiliates to any other Seller with respect to the Station or the Assets for the purposes of
supplying operating cash flow.

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

“Permitted Encumbrances” has the meaning set forth in Section 2.3(a).

“Promissory Note” has the meaning set forth in Section 2.4(c).

“Proposed Allocation” has the meaning set forth in Section 2.4(d).

“Purchase Price” has the meaning set forth in Section 2.4(a).

“Receivables” has the meaning set forth in Section 2.2(i).

“Representatives” has the meaning set forth in Section 5.12.

“Returns” has the meaning set forth in Section 3.6.

“Security Interests” has the meaning set forth in Section 2.3(a).

“Seller” has the meaning set forth in the first paragraph of this Agreement.

“Seller Indemnitees” has the meaning set forth in Section 10.2(b).

“Station” has the meaning set fort in Recital A.

“Subsidiary” means any corporation, partnership, limited liability company or other legal
entity with respect to which a specified Person (or a Subsidiary thereof) owns a majority of the
common stock, partnership interests, membership interests or other entity interests or has the
power to vote or direct the voting of sufficient securities to elect a majority of the directors,
managers or general partners.

“Superior Claims” has the meaning set forth in Section 10.1.

 

5

 

“Tangible Personal Property” means all tangible personal property of any kind or description,
including, without limitation, equipment, transmitters, electrical devices, antennae, cables,
towers equipment, distribution systems, amplifiers, microwave equipment, converters, testing
equipment, computers and computer equipment, furniture, fixtures, office materials and supplies,
hardware, tools, spare parts, vehicles, towers, software and prize inventory.

“Taxes” has the meaning set forth in Section 3.6(a).

ARTICLE 2

PURCHASE AND SALE OF PROPERTIES AND ASSETS

2.1 Purchase and Sale. At the Closing and on the terms and conditions set forth in
this Agreement, Seller shall sell, transfer, convey, assign and deliver to Buyer, free and clear of
Security Interests other than Permitted Encumbrances, and Buyer shall acquire and purchase from
Seller, all right, title and interest of Seller in and to the following assets, properties and
rights (the “Assets”):

(a) Tangible Personal Property. All Tangible Personal Property owned or leased by
Seller used or held for use in the operation of the Station listed on Schedule 2.1(a),
together with any additions, modifications, alterations or improvements thereto between the date
hereof and the Closing Date (collectively, the “Acquired Tangible Personal Property”);

(b) Licenses and Authorizations. All rights in and to the Authorizations issued to
Seller, all rights in and to the call letters of the Station at the Closing Date, all broadcast
auxiliary and other authorizations of the FCC associated with the operation of the Station, each as
listed on Schedule 2.1(b), together with all amendments and all applications therefor, any
renewals, extensions or modifications thereof and additions thereto as of the Closing Date and all
public inspection files and other required records of Seller;

(c) Agreements for Sale of Time. All orders and agreements now existing, or entered
into in the Ordinary Course of Business between the date hereof and the Closing Date, for the sale
of advertising time on the Station (including trade accounts) listed in Schedule 2.1(c);

(d) Contracts. All Contracts listed on Schedule 2.1(c) and Schedule
2.1(d), together with any Contracts entered into between the date hereof and the Closing Date
and assumed by Buyer pursuant to Section 6.5 (collectively, the “Assumed Contracts”);

(e) Intangible Property. All Intangible Property described on Schedule 2.1(e)
(collectively, the “Acquired Intangible Property”);

(f) Files and Records. The files and other records of Seller specifically relating to
the Station or the Assets;

(g) Claims. Any and all of Seller’s claims and rights against third parties
specifically relating to the Station or the Assets, including, without limitation, those listed on
Schedule 2.1(g), but specifically excluding those claims described in Section 2.2(g) and
listed on Schedule 2.2(g);

 

6

 

(h) Prepaid Items. All prepaid expenses primarily relating to, and not having
substantial application outside of, the Station or the Assets;

(i) Goodwill. All of Seller’s goodwill in, and going concern value of, the Station
and the Assets; and

(j) Franchises, Permits. All franchises, approvals, licenses, orders, registrations,
certificates, variances and similar rights obtained from Government Agencies exclusively relating
to the Station or the Assets, including, without limitation, those listed on Schedule
2.1(j).

2.2 Excluded Assets. Notwithstanding anything to the contrary contained in this
Agreement, the Assets shall not include any assets, properties or rights not identified in Section
2.1 (collectively, the “Excluded Assets”). The Excluded Assets shall include, without limitation,
the following:

(a) all assets primarily relating to all businesses of Seller and its Affiliates other than
the Station;

(b) all pension, 401(k), profit sharing and savings plans and trusts and any other “employee
benefit plan” within the meaning of Section 3(3) of ERISA and any assets thereof;

(c) all real property owned, leased, used or held for use by Seller or its Affiliates,
together with the furnishings and broadcast equipment listed in Exhibit A of the New Lease;

(d) the minute books, stock books, shareholder lists and similar corporate records of Seller;

(e) any personal property that is owned by any employee of Seller;

(f) all of Seller’s cash on hand or in bank accounts and other cash equivalents including,
without limitation, certificates of deposit, commercial paper, treasury bills or money market
accounts;

(g) any and all of Seller’s claims and rights against Johnson Broadcasting and any arising
from the Uechtritz litigation and such other claims listed on Schedule 2.2(g);

(h) all Contracts, including, without limitation Non-Material Contracts and Oral Contracts, of
Seller other than the Assumed Contracts;

(i) all accounts receivable of Seller accrued through the Effective Time (the “Receivables”);

(j) all ownership interests of Seller in any Affiliate, joint venture or any other Person; and

(k) all rights that accrue to Seller under this Agreement.

 

7

 

2.3 Liabilities.

(a) Security Interests. At the Closing, Seller will convey the Assets to Buyer free
and clear of all mortgages, liens, deeds of trust, security interests, pledges, options,
restrictions, prior assignments, charges, claims, defects in title and encumbrances of any kind or
type whatsoever (collectively, the “Security Interests”) except for: (i) liens for Taxes (other
than state, federal or local Income Taxes and other Taxes of Seller that do not relate to the
Assets) accruing prior to the Closing that are not yet due and payable, (ii) the obligations of
Seller to be performed after the Closing Date that Buyer has agreed to assume under the Assumed
Contracts as described in Section 2.3(b), (iii) statutory liens of landlords, carriers, mechanics,
materialmen, repairmen or like liens incurred in the Ordinary Course of Business and not yet
delinquent, and (iv) other than with respect to Real Property, liens arising under original
purchase price conditional sales contracts and equipment leases with third parties entered into in
the Ordinary Course of Business which are not, individually or in the aggregate, material to the
Station or the Assets (collectively referred to herein as “Permitted Encumbrances”).

(b) Assumed Liabilities. Except as otherwise provided herein and subject to the terms
and conditions of this Agreement, as of the Effective Time, Buyer shall assume, and hereby agrees
to perform and discharge when due, all liabilities and obligations of the Station and the Assets
arising after the Closing Date that relate to periods after the Closing Date or to be performed
after the Closing Date under the Assumed Contracts, including, without limitation, any Assumed
Contracts the benefits and burdens of which are assigned to Buyer under Section 11.6 (collectively
the “Assumed Liabilities”).

(c) Excluded Liabilities. Other than the Assumed Liabilities, Buyer shall not assume
or be liable for, and does not undertake or attempt to assume or discharge any obligation of Seller
or Parent.

(d) Retained Obligations of Seller. Parent and Seller shall retain and shall
hereafter pay, satisfy, discharge, perform and fulfill all liabilities and obligations of Parent,
Seller or relating to the Station or the Assets (other than the Assumed Liabilities), including,
without limitation, those liabilities and obligations set forth in Section 11.9
(collectively, the “Excluded Liabilities”), as they become due, without any charge or cost to
Buyer.

2.4 Purchase Price, Payment and Allocation.

(a) Purchase Price. The aggregate purchase price for the Assets (the “Purchase
Price”) shall be Sixteen Million Dollars ($16,000,000.00).

(b) Escrowed Amount. On the date hereof, Buyer shall pay to Kalil & Co., Inc. in its
capacity as escrow agent (“Escrow Agent”) under the Escrow Agreement, One Million Six Hundred
Thousand Dollars ($1,600,000.00) (the “Deposit”; the Deposit, including any interest, income and
earnings thereon, the “Escrow Property”). The Escrow Property shall be subject to release from
escrow under the Escrow Agreement to Buyer or Seller in accordance with Section 2 of the Escrow
Agreement and, if the Closing occurs, with this Section.

 

8

 

(c) Method of Payment. At the Closing, the Purchase Price shall be paid as follows:

(i) Buyer shall pay to Seller the sum of Eight Million Dollars ($8,000,000.00) less the
Deposit by wire transfer of immediately available United States funds pursuant to the instructions
of Seller which instructions shall be delivered to Buyer at least two Business Days before the
Closing; provided that, for purposes of clarity, if the Escrow Property is released after 180 days
from the date hereof (x) in accordance with Section 2(b) of the Escrow Agreement to Seller, but the
Closing is thereafter consummated, then Buyer shall pay to Seller the sum of Five Million Nine
Hundred Thousand Dollars ($5,900,000.00) by wire transfer of immediately available United States
funds pursuant to such instructions as previously described or (y) in accordance with Section 2(c)
of the Escrow Agreement to Buyer, but the Closing is thereafter consummated, then Buyer shall pay
to Seller the sum of Eight Million Dollars ($8,000,000.00) by wire transfer of immediately
available United States funds pursuant to such instructions as previously described;

(ii) in accordance with Section 2(a) of the Escrow Agreement, Buyer and Seller shall deliver
joint written instructions regarding the release of the Escrow Property to the Escrow Agent causing
the Escrow Agent to release the Escrow Property to Seller at the Closing in accordance with such
written instructions; and

(iii) Buyer shall issue to Seller a promissory note, in form attached hereto as Exhibit
A (the “Promissory Note”), in the principal amount of Eight Million Dollars ($8,000,000.00).

(d) Allocation of Purchase Price. Within thirty (30) days after the Closing, Buyer
shall deliver to Seller a statement of the allocation of the Purchase Price among the Assets in
accordance with Section 1060 of the Code and the Income Tax Regulations promulgated under the Code
(the “Proposed Allocation”). Seller shall have thirty (30) days following the receipt of the
Proposed Allocation during which to notify Buyer of any dispute concerning the Proposed Allocation.
Buyer and Seller shall work in good faith to resolve any such disputes. If Buyer and Seller are
unable to resolve any such dispute within fifteen (15) days (or such longer period as Buyer and
Seller shall mutually agree in writing) of notice of such dispute, such dispute shall be resolved
and determined by Hein & Associates LLP, which determination shall
be final, conclusive and binding on Buyer and Seller (the allocation agreed to between Buyer
and Seller or as determined by Hein & Associates LLP, (the “Final Allocation”). Seller and Buyer
agree (i) to jointly complete IRS Form 8594 in the manner required by Section 1060 of the Code, the
regulations thereunder and the Allocation, and to file separately such IRS Form 8594 with its
federal income tax return for the tax year in which the Closing occurs and (ii) that neither Seller
nor Buyer will take a position on any tax return inconsistent with the Final Allocation without the
written consent of the other party; provided, however, nothing contained in this Agreement shall
prevent Buyer or Seller from settling any proposed deficiency or adjustment by any taxing authority
based on or arising out of the Final Allocation, and neither Buyer nor Seller shall be required to
litigate before any court, any proposed deficiency or adjustment by any taxing authority
challenging such Final Allocation. Notwithstanding anything to the contrary in this Agreement, the
provisions of this Section 2.4 shall survive the Closing.

 

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2.5 Adjustments.

(a) General Rule. The following provisions shall be used in prorating income and
expenses relating to the Station and the Assets: (i) the operation of the Station and the income
and normal operating expenses attributable thereto through 11:59:59 p.m. (Houston Time) (the
“Effective Time”) on the Closing Date shall be for the account of Seller and thereafter for the
account of Buyer and, if any income or expense is properly allocable or credited, then it shall be
allocated, charged or prorated accordingly, (ii) expenses for goods or services received both
before and after the Effective Time, power and utilities charges, frequency discounts, insurance
premiums for any insurance policies being assigned to Buyer, prepaid cash, time sales agreements,
rents and similar prepaid and deferred items shall be prorated between Seller and Buyer as of the
Effective Time. At Closing, the parties shall make all known prorations and estimate any remaining
prorations in accordance with this Agreement.

(b) Adjustment Schedule. Seller will prepare and deliver to Buyer within ninety (90)
days after the Closing Date a report computing the details of the allocations prescribed in Section
2.5(a), in accordance with the provisions of this Agreement. Within thirty (30) days after
receiving the report, Buyer will provide Seller with written notice of any objections to the
computations. If Buyer has no objections, the party obligated to make payment under the report
will do so within five (5) Business Days after the expiration of the thirty- (30-) day period
described in the previous sentence. Any disagreement that cannot be resolved by the parties within
thirty (30) days after the delivery of written notice of objection by Buyer will be resolved by an
independent accounting firm mutually agreeable to the parties. The fees and expenses of such
independent account firm shall be borne equally by the parties.

2.6 Closing. The consummation of the transactions provided for in this Agreement (the
“Closing”) shall take place at the offices of Lombardo Dufresne LLP, 275 Madison Avenue,
35th Floor, New York, New York, at 11:00 a.m. on (a) the tenth (10th)
Business Day after the FCC Order is granted or issued (and not when such FCC Order becomes Final)
and all conditions to Closing set forth in Articles 7 and 8 have been satisfied (other than those
conditions that by their very nature can only be satisfied at Closing), or (b) such other place,
time or date as the parties may agree on in writing. To the extent feasible, the Closing will be
held by overnight mail, electronic transmission, wire transfer, facsimile or combination thereof,
without the
principals present. The date on which the Closing is to occur is referred to herein as the
“Closing Date.”

2.7 Compliance with Bulk Sales. The parties hereto hereby waive compliance with any
applicable bulk sales laws.

 

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ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF SELLER

Each Seller jointly and severally represents and warrants to Buyer that the statements
contained in this Article 3 are correct and complete on the date hereof and will be correct and
complete as of the Closing Date (as though made on and as of the Closing Date), except as set forth
in this Article 3 and except as set forth in the disclosure schedule delivered by Seller to Buyer
on the date hereof (the “Disclosure Schedule”). The Disclosure Schedule will be arranged in
paragraphs corresponding to the lettered and numbered paragraphs contained in this Article 3.

3.1 Corporate Status. Operating Seller is a limited partnership duly organized and
validly existing under the laws of the State of Texas, License Seller is a limited partnership duly
organized and validly existing under the laws of the State of Texas, Asset Seller is a limited
partnership duly organized and existing under the laws of the State of Texas and each is qualified
to transact business in every other jurisdiction in which the failure to be so qualified would have
a material adverse effect on the Station or the Assets. Parent is a corporation duly organized and
validly existing under the laws of the State of Texas. Each Seller and Parent has the requisite
corporate or limited partnership, as applicable, power and authority to carry on its business as it
is now being conducted and to own and operate the Station and the Assets, and each Seller and
Parent has the requisite corporate or limited partnership, as applicable, power to enter into and
complete the transactions contemplated by this Agreement.

3.2 No Options. No Affiliate of any Seller or any other Person (other than Buyer) has
an interest in, or right or option to acquire, any of the Assets or any property primarily used in
the operation of the Station.

3.3 Entity Action. All corporate and partnership actions and proceedings required to
be taken by or on the part of each Seller and Parent under applicable law, in connection with its
performance, execution and delivery of this Agreement have been duly and validly taken and this
Agreement has been duly and validly authorized, executed, and delivered by each Seller and Parent
and constitutes the legal, valid and binding obligation of each Seller and Parent enforceable
against such Seller and Parent in accordance with and subject to its terms, subject to applicable
bankruptcy, insolvency and other similar laws affecting the enforceability of creditors’ rights
generally, general equitable principles and the discretion of courts in granting equitable
remedies.

3.4 No Defaults. Neither the execution, delivery and performance by Seller and Parent
of this Agreement nor the consummation by Seller and Parent of the transactions contemplated hereby
is an event that, by itself or with the giving of
notice or the passage of time or both, will: (a) violate or conflict with any provision of
the Charter Documents of such Seller or Parent; (b) assuming the consents: (i) referred to in
Section 3.9, (ii) required in connection with any assignment to Buyer of the Assumed Contracts or
(iii) otherwise contemplated by this Agreement are obtained, constitute a violation of, conflict
with or result in any breach of or any default under, result in any termination or modification of,
or cause any acceleration of any obligation of Seller or Parent under any contract, mortgage,
indenture, agreement, lease or other instrument to which Seller or Parent is party or by which it
is bound, which violation, conflict, breach or default would have a material adverse effect on
Parent, Seller or Buyer, the Station, the Assets or the ability of Parent or Seller to enter into
this Agreement or consummate the transactions contemplated hereby or result in the creation of any
Security Interest on the Assets; (c) violate any judgment, decree, order, statute, law, rule or
regulation of any court, arbitrator or government or regulatory body applicable to Parent, Seller,
the Station or the Assets; or (d) result in the creation or imposition of any lien, charge or
encumbrance against the Station or the Assets.

 

11

 

3.5 Contracts, Leases, Agreements and Other Commitments. Set forth on Schedule
2.1(d) is a complete and accurate list of each Assumed Contract. Seller is not party to, nor
is bound by, any Contract, lease, power of attorney, guaranty, surety arrangement or other
commitment related to the operation of the Station, including, without limitation, any Contract for
the purchase or sale of merchandise, programming or software or for the rendition of services,
except for the Non-Material Contracts, Oral Contracts and Assumed Contracts. Accurate and complete
copies of each of the Assumed Contracts, together with all amendments thereto, have heretofore been
delivered or made available to Buyer. Except as set forth on Schedule 3.5, there does not
exist any event of default under, and Seller is not in breach of any term, provision or condition
of, any Assumed Contract. To Seller’s Knowledge, no other party thereto is in default or breach
under any of the Assumed Contracts.

3.6 Taxes.

(a) All federal, state and local returns, reports, estimates and other statements (“Returns”)
required to have been filed with any jurisdiction with respect to Seller or the operation of the
Station with respect to any income, franchise, property, sales, value-added, payroll, withholding,
excise, assessment, levy, capital and all other taxes, duties, penalties, assessments or
deficiencies of every nature and description (collectively, “Taxes”) have been duly and timely
filed by Seller and each such Return correctly reflects the amount of Taxes required to be reported
or paid or both. Other than as set forth on Schedule 3.6, Seller has paid all Taxes due
and payable that it is required to pay, incur or accrue before the date hereof. There is no amount
of Taxes that are past due. No consent extending the applicable statute of limitations has been
filed by or with respect to Seller with respect to any of such Taxes for any years. There is no
action, suit, proceeding, audit, investigation or claim now pending, or to Seller’s Knowledge,
threatened, regarding any Taxes or any Return of Seller.

(b) There are no Tax liens on any of the Assets. Seller is not a “foreign person” as defined
in Section 1445(f)(3) of the Code.

(c) Seller has withheld amounts from its employees working in its business in accordance with
applicable law. With respect to such employees, Seller has filed all Returns required to be filed
and paid all required Taxes with respect to employee income tax withholding, social security,
Medicare and unemployment taxes and other similar taxes and charges, in compliance with the tax
withholding provisions of the Code and other applicable federal, state and local laws.

3.7 Licenses. Seller is the holder of all licenses, permits, franchises,
authorizations and approvals, including associated broadcast auxiliary service authorizations or
authorizations of any governmental or quasi-governmental authority required for the operation of
the Station (collectively, the “Authorizations”). The Authorizations constitute all of the
licenses and authorizations required under the Communications Act of 1934, as amended (the
“Communications Act”), and the current rules, regulations and published policies of the FCC for the
operation of the Station as currently operated (said FCC rules, regulations and published policies,
collectively with the Communications Act, are referred to herein as the “Communications Laws”).
The Authorizations are validly issued, in full force and effect and have not been revoked,
suspended, canceled, rescinded or terminated and have not expired and are not subject to any
conditions that would require operation of the Station in a manner materially different than their
operations as of the date hereof. No waiver of any Communications Laws is required for Seller to
be the holder of any of the Authorizations. Except as listed on Schedule 3.7, (i) there is
no pending or, to Seller’s Knowledge, threatened action by or before the FCC to revoke, suspend,
cancel, rescind or modify any of the Authorizations (other than proceedings to amend FCC rules of
general applicability), (ii) there is not now issued or outstanding or pending or threatened by or
before the FCC, any order to show cause, notice of violation, notice of apparent liability, or
notice of forfeiture or complaint against Seller or the Station, and (iii) there are no pending
applications filed by Seller seeking to modify or revoke any Authorizations. Other than as set
forth in Schedule 3.7, the Station is operating in all material respects in compliance with
the Authorizations and the Communications Laws. Other than the Authorizations, there are no
licenses, permits or authorizations of any governmental or quasi-governmental authority required to
operate the Station. Other than as set forth in Schedule 3.7, Seller has complied in all
material respects with the Communications Laws and all writs, injunctions, ordinances, decrees or
orders of the FCC that are applicable to Seller, the Assets or the Station.

 

12

 

3.8 Compliance with Laws; Additional Regulatory Matters.

(a) Law. Except as set forth in Schedule 3.8(a), the Station, Assets and
Seller are compliant, in all material respects, with applicable federal, state and local
requirements of any agency of the Federal, State or local government (each, a “Government Agency”)
having jurisdiction over the Stations, Assets or Seller.

(b) Reports. All reports and filings required to be filed with the FCC and any other
Government Agency directly relating to the Station by Seller have been timely filed. All such
reports and filings are accurate and complete in all material respects and filed on a timely basis.
Seller maintains appropriate public files at the Station as required by the Communications Laws.
Except as disclosed on Schedule 3.8(b), with respect to FCC licenses, permits and
Authorizations of Seller, Seller is operating only those facilities for which appropriate
Authorizations have been obtained from the FCC and are in full force and effect and Seller is
complying with the terms and conditions of such Authorizations.

(c) No Notices. Seller has not received notice or other communication indicating that
it does not comply with all requirements of (i) the Communications Laws or (ii) applicable state
and local statutes, regulations and ordinances. Seller has no Knowledge and has not received any
notice or communication, formal or informal, indicating that the FCC or any other Government Agency
is considering revoking, suspending, modifying, canceling, rescinding or terminating any
Authorization.

(d) RF Radiation. The operation of the Station does not cause or result in exposure
of workers or the public to levels of radio frequency radiation in violation of FCC rule Section
1.310 or FCC OST/OET Bulletin Number 65.

3.9 Approvals and Consents. The only material approvals or consents of persons or
entities not a party to this Agreement that are legally or contractually required to be obtained by
Seller in connection with the consummation of the transactions contemplated by this Agreement are
those which are contemplated by Sections 5.5 and 5.8. Any approvals under the Assumed Contracts or
with any Government Agency are “material” for purposes of this Section. Except as provided on
Schedule 3.9, no approval or consent of the holders of any Security Interest or any other
security holder is required in connection with the execution and delivery of this Agreement or the
consummation of the transactions contemplated hereby.

 

13

 

3.10 Condition of Assets.

(a) All Assets. Except as set forth on Schedule 3.10(a), the Assets
constitute all of the assets necessary for Seller to operate the Station as currently conducted.

(b) Tangible Personal Property. Schedule 2.1(a) contains a true and complete
list of all items of Tangible Personal Property of every kind or description owned, leased,
licensed or used by Seller principally in the conduct of the Station, except for office materials
and supplies (which office supplies or any replacements thereof shall be part of the Assets). Any
Acquired Tangible Personal Property that is leased or licensed by Seller, whether as lessor,
lessee, licensee or licensor, is separately designated on Schedule 2.1(a) and all related
lease agreements are described on Schedule 2.1(a). Except as set forth on Schedule
3.10(a), the Acquired Tangible Personal Property constitutes all of the Tangible Personal
Property necessary for Seller to operate the Station as currently conducted.

(c) Good Title, Operating Condition. Except as listed on Schedule 3.10(c):
(i) Seller has good, valid and marketable title to or the unrestricted right to use all of the
Assets owned, leased or licensed by it, in each case, free and clear of all Security Interests of
every kind or character (other than Permitted Encumbrances and other than the Security Interests to
be released at Closing); (ii) Seller is the owner, lessee or licensee of all of the Acquired
Tangible Personal Property; and (iii) all Acquired Tangible Personal Property, including equipment
and electrical devices, is in usable operating condition and repair, normal wear and tear excepted,
and has been maintained in all material respects in accordance with the Communications Laws.

3.11 Insolvency Proceedings. Neither Seller nor any of the Station or the Assets are
the subject of any pending or, to the Knowledge of Seller, threatened insolvency proceedings of
any character, including, without limitation, bankruptcy, receivership, reorganization, composition
or arrangement with creditors, voluntary or involuntary. In respect of the Assets, Seller has not
made an assignment for the benefit of creditors, fraudulent conveyances, preferences or transfers
nor has Seller taken any action with respect to the institution of any such insolvency proceedings.

3.12 Litigation. Except as set forth on Schedule 3.12, there are no suits,
arbitrations, administrative charges or other legal proceedings, claims or governmental
investigations pending or, to Seller’s Knowledge, threatened against Seller that otherwise affect
the Station or the Assets. Except as set forth on Schedule 3.12, Seller has not been
operating under or subject to, or in default with respect to, any order, writ, injunction or decree
relating to the Station or the Assets of any court or federal, state, municipal or other
governmental department, commission, board, agency or instrumentality.

3.13 Intangible Property. Except as set forth on Schedule 3.13, the Acquired
Intangible Personal Property constitutes all of the Intangible Personal Property necessary for
Seller to operate the Station as currently conducted. Seller has all right, title and interest in
and to all Intangible Property necessary in the operation of the Station as currently operated.
Seller has not received notice of any claim against it involving any conflict or claim of conflict
of any items of Acquired Intangible Property. Except as disclosed on Schedule 3.13, Seller
is not in violation, breach or default under any lease or license agreement relating to Acquired
Intangible Personal Property. Seller has not infringed any third-party’s copyright, patent,
trademark, service mark, logotype, license or other proprietary right relating to Acquired
Intangible Personal Property, including the use of any call sign, slogan or logo by any broadcast
station or cable systems in the marketing area of the Station that may become confusingly similar
to the call sign, slogans and logos currently used by the Station. Seller owns or possesses
adequate licenses or other rights to use all of the Acquired Intangible Property.

 

14

 

3.14 Brokers. Except as set forth on Schedule 3.14, there is no broker or
finder or other Person who would have any valid claim through Seller against any of the parties to
this Agreement for a commission or brokerage fee or payment in connection with this Agreement or
the transactions contemplated hereby as a result of any agreement of, or action taken by, Seller.

3.15 Conflicting Interests. Except as disclosed on Schedule 3.15, neither
Seller nor any director, officer, member, manager, partner or shareholder of Seller, has any
financial interest in any supplier, advertiser or customer of Seller or in any other business
enterprise with which the Station or Seller engages in business or with which the Station or Seller
is in competition. The ownership of less than one percent of the outstanding capital stock of a
publicly held corporation shall not be deemed a violation of this representation and warranty.

3.16 Cable Matters. Schedule 3.16 sets forth, as of the date hereof (i) to
Seller’s Knowledge, a list of all multichannel video programming distributors, including but not
limited to cable systems, SMATV systems, open video
systems, Broadband Radio Service systems and DBS systems (collectively, “MVPDs”) that carry
the Station’s signal and the channels on which such signal is carried, (ii) a list of all MVPDs to
which Seller has provided a must-carry notice or retransmission consent notice in accordance with
the provisions of the Communications Laws for the three-year period ending December 31, 2011,
including the disposition and current status of each such must-carry or retransmission consent
notice; and (iii) a list of all retransmission consent and/or copyright indemnification contracts
entered into with any MVPD with respect to the Station for the three-year period ending December
31, 2011 (including any such contracts that cover any period beyond December 31, 2011) and the
expiration date for each such contract. Except as set forth on Schedule 3.16, consummation
of the transactions contemplated hereunder will not require consent of any person with respect to
carriage pursuant to a retransmission consent agreement on any MVPD. No MVPD has declined or
refused to carry the Station or disputed a Station’s right to carriage pursuant to the Station’s
must-carry or retransmission consent election, as the case may be. Seller has provided or made
available to Buyer true, correct and complete copies, including all amendments, of the agreements
referenced in Schedule 3.16.

3.17 Digital Broadcasting. The Station has been assigned by the FCC the digital
channel listed on Schedule 2.1(b) for the provision of DTV service, and the Authorizations
include the FCC authorization(s) for such digital channel. The Station is broadcasting its DTV
signal in material compliance with such authorization(s); the Station is in compliance in all
material respects with the FCC’s build-out and operational requirements for digital television; and
no further construction or facilities modifications will be required to meet such requirements.
Except as set forth on Schedule 3.17, neither Seller nor any Person on behalf of Seller has
leased, licensed, assigned, conveyed or otherwise encumbered the Station’s digital spectrum or any
portion thereof or granted rights to any party to broadcast on the Station’s digital spectrum or
any portion thereof.

 

15

 

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer represents and warrants to Seller that the statements contained in this Article 4 are
correct and complete as of the date hereof and will be correct and complete as of the Closing Date
(as though made on and as of the Closing Date), except as set forth in this Article 4 and except as
set forth in the disclosure schedule delivered by Buyer to Seller on the date hereof (the “Buyer
Disclosure Schedule”). The Buyer Disclosure Schedule will be arranged in paragraphs corresponding
to the lettered and numbered paragraphs contained in this Article 4.

4.1 Qualification as a Broadcast Licensee. Buyer is familiar with the Communications
Laws. Except as set forth on Schedule 4.1, Buyer is legally and financially qualified
under the Communications Laws to acquire the Station from Seller. Except as set forth on
Schedule 4.1, there is no fact or condition known to Buyer that would, under the
Communications Laws, disqualify Buyer as owner and operator of the Station or constitute grounds
for the filing of a petition to deny or objection related to the qualifications of Buyer or that
would reasonably be expected to result in a delay for FCC approval of the assignment applications.
Except as set forth on Schedule 4.1, to Buyer’s Knowledge, no
waiver of any Communications Laws existing as of the date hereof will be required, with
respect to Buyer, to obtain FCC approval of the assignment applications.

4.2 Status.

(a) Buyer. Buyer is a corporation duly organized, in good standing and validly
existing under the laws of Delaware. Buyer is (or will be at the Closing) duly authorized to
transact business in the State of Texas. Buyer has the requisite corporate power to enter into and
complete the transactions contemplated by this Agreement.

(b) Approvals and Consents. There are no approvals or consents of Persons not a party
to this Agreement that are legally or contractually required to be obtained by Buyer in connection
with the consummation of the transactions contemplated by this Agreement other than the FCC Order.

4.3 No Defaults. Neither the execution, delivery and performance by Buyer of this
Agreement nor the consummation by Buyer of the transactions contemplated hereby is an event that,
by itself or with the giving of notice or the passage of time or both, will: (a) violate or
conflict with any provision of the Charter Documents of Buyer, (b) constitute a violation of,
conflict with or result in any breach of or any default under, result in any termination or
modification of, or cause any acceleration of any obligation under any material contract, mortgage,
indenture, agreement, lease or other instrument to which Buyer is a party or by which it or any of
its material assets are bound, or (c) except as set forth on Schedule 4.3, violate any
judgment, decree, order, statute, law, rule or regulation of any court, arbitrator or government or
regulatory body applicable to Buyer or the assets of Buyer.

 

16

 

4.4 Entity Action. All corporate actions and proceedings required to be taken by or
on the part of Buyer under applicable law, in connection with its performance, execution and
delivery of this Agreement have been duly and validly taken, and this Agreement has been duly and
validly authorized, executed and delivered by Buyer and constitutes the legal, valid and binding
obligation of Buyer, enforceable against Buyer in accordance with and subject to its terms, subject
to applicable bankruptcy, insolvency and other similar laws affecting the enforceability of
creditors’ rights generally, general equitable principles and the discretion of courts in granting
equitable remedies.

4.5 Brokers. There is no broker or finder or other Person who would have any valid
claim through Buyer against any of the parties to this Agreement for a commission or brokerage fee
or payment in connection with this Agreement or the transactions contemplated hereby as a result
of, any agreement of or action, taken by Buyer.

4.6 Insolvency Proceedings. Buyer is not the subject of any pending or, to Buyer’s
Knowledge, threatened insolvency proceedings of any character, including without limitation,
bankruptcy, receivership, reorganization, composition or arrangement with creditors, voluntary or
involuntary.

4.7 Litigation. There is no claim, action, suit, proceeding or governmental
investigation pending or, to Buyer’s Knowledge, threatened by Buyer, by or before any Governmental
Agency or by any third party which challenges the validity
of this Agreement or which would be reasonably likely to adversely affect or restrict Buyer’s
ability to consummate the transactions contemplated by this Agreement. Except as set forth on
Schedule 4.7, there are no, and have not been for the past five years, any suits,
arbitrations, administrative charges or other legal proceedings, claims or governmental
investigations pending or, to Buyer’s Knowledge, threatened against Buyer or any of its Affiliates
relating to the acquisition or disposition of media companies or broadcast stations.

4.8 Financial Capability. Buyer has and will have as of the Closing Date sufficient
funds on hand to consummate the Closing and the financial capability to perform all other
transactions contemplated by this Agreement (including without limitation the issuance and payment
of the Promissory Note).

ARTICLE 5

COVENANTS OF SELLER PENDING THE CLOSING

Seller covenants and agrees that, from the date hereof until the termination of this Agreement
or the completion of the Closing:

5.1 Operations of the Business.

(a) Ordinary Operations. Until the Closing (except as otherwise provided in this
Agreement or consented to in writing by Buyer, which consent shall not be unreasonably withheld or
delayed), Seller will operate the Station in the Ordinary Course of Business. Without limitation
of the foregoing, Seller shall:

(i) keep its books and accounts, records and files relating to the Station in the usual and
ordinary manner;

(ii) pay and discharge all of its debts and obligations relating to the Station and the
Assets;

 

17

 

(iii) operate the Station in compliance with the terms of the Authorizations and all
applicable laws, rules and regulations, including, without limitation, Communications Laws; and

(iv) timely file or cause to be filed all reports and other filings required to be filed with
any Government Agency, including, without limitation, the FCC with respect to the Station.

(b) Condition of Assets. All Tangible Personal Property necessary for the operation
of the Station shall be maintained in its existing condition and repair, normal wear and tear
excepted, and the Operating Seller shall maintain adequate and usual supplies of office supplies,
spare parts and other materials as have been customarily maintained in accordance with past
practices of Seller. Seller shall use its commercially reasonably efforts to preserve intact the
Assets necessary for the operation of the Station and to maintain in effect the casualty and
liability insurance on such Assets heretofore in force.

5.2 Prohibited Actions. Except as otherwise specifically provided herein, before the
Closing Date, Seller shall not, without the prior written consent of Buyer:

(a) Sell, lease or transfer or agree to sell, lease or transfer, any Assets, except for
incidental sales or leases of Assets in the Ordinary Course of Business;

(b) Except as may be required by law or existing written plans or agreements, grant any raises
to any employees or consultants of the Station (except in the Ordinary Course of Business),
establish or modify any severance plan, pay any substantial bonuses to employees of the Station
(except in the Ordinary Course of Business), enter into any contract of employment with any
employee of the Station, change any benefits to employees or consultants or enter into any
independent contractor agreement relating to the Station;

(c) Except in the Ordinary Course of Business, renegotiate, modify, renew, amend, or terminate
any existing Contracts;

(d) Make any change in the Station’s buildings, leasehold improvements or fixtures, except in
the Ordinary Course of Business;

(e) Other than Permitted Affiliate Loans, enter into any contracts with Affiliates of Seller
with respect to the Station or the Assets;

(f) Apply to the FCC for any construction permit that would restrict or modify the Station’s
present operations;

(g) Make or attempt to make any change in the Authorizations, other than renewals or
extensions necessary to keep such Authorizations in full force and effect;

(h) Enter into any Contract relating to the Station or the Assets, other than a Non-Material
Contract or other than as contemplated by this Agreement.

 

18

 

5.3 Access to Facilities, Files and Records. At the reasonable request of Buyer and
on reasonable advance notice, Seller shall, from time to time, promptly give or cause to be given
to the officers, employees, accountants, counsel, agents, consultants and representatives of Buyer
full access during normal business hours to: (i) all facilities, properties, accounts, books,
deeds, title papers, insurance policies, agreements, contracts, commitments, records and files of
every character, including, without limitation, equipment, machinery, fixtures, furniture,
vehicles, notes and accounts payable and receivable relating to the Station; and (ii) all such
other information concerning the Station and the Assets as Buyer may reasonably request. Any
investigation or examination by Buyer in connection with the foregoing shall not in any way
diminish or obviate any representations or warranties of Seller made in this Agreement, the
Schedules and documents delivered pursuant to this Agreement. Any investigation or examination by
Buyer shall be conducted in such a manner so as not to interfere unreasonably with the operation of
the business of Seller.

5.4 Representations and Warranties. Seller shall give detailed written notice to
Buyer promptly on learning of the occurrence of any breach in any material respect of any of
Seller’s representations or warranties contained in this Agreement; provided, however, that any
such notice shall not affect Seller’s liabilities or obligations hereunder or Buyer’s rights and
interests hereunder.

5.5 Consents. Seller shall use its commercially reasonable efforts to obtain the
consent or approval of any third Person required under any Assumed Contract in order to assign any
such Assumed Contract from Seller to Buyer, including providing adequate notice of the assignment
where applicable. Schedule 5.5 lists all of the Material Consents.

5.6 Notice of Proceedings. Seller will promptly notify Buyer in writing upon: (a)
receiving notice or a copy of any order or decree or any complaint praying for an order or decree
restraining or enjoining the consummation of this Agreement or the transactions contemplated
hereunder; or (b) receiving any notice from any Government Agency: (i) to institute an
investigation into, or institute a suit or proceeding to restrain or enjoin, the consummation of
this Agreement or such transactions, or (ii) to nullify or render ineffective this Agreement or
such transactions if consummated.

5.7 Consummation of Agreement. Subject to the provisions of Section 11.1, Seller
shall fulfill and perform all conditions and obligations on its part to be fulfilled and performed
under this Agreement and use its commercially reasonable efforts to cause the transactions
contemplated by this Agreement to be fully carried out.

 

19

 

5.8 Applications for FCC Consents. As promptly as practicable following the date
hereof and in no event later than five (5) Business Days hereafter, Seller and Buyer shall file an
application requesting the FCC’s written consent to the assignment of the Authorizations to Buyer
(the “FCC Application”). Seller and Buyer shall use their commercially reasonable efforts to
prosecute the FCC Application to a favorable conclusion. Each party shall promptly provide the
other with a copy of any pleading, order or other document served on such party relating to such
FCC Application. Without limiting the foregoing, Buyer and Seller shall fully cooperate in the
taking of all steps, and provide any additional information reasonably requested, and use their
respective commercially reasonable efforts to resolve objections that may be asserted by the FCC or
any third party, in order to obtain the FCC Order promptly; provided however, that Buyer shall not
be required to agree to divest any station owned by Buyer as of the date of this Agreement as a
precondition to obtaining the FCC Order. If reconsideration or judicial review is sought with
respect to the FCC Order, the party or parties affected shall diligently oppose such efforts for
reconsideration or judicial review. Each party shall notify the other party of all documents filed
with or received from the FCC. If either party becomes aware of any fact or circumstance that
would prevent or delay the FCC Order, it shall promptly notify the other party thereof. If Closing
occurs hereunder without the FCC Order and any required extension of the terms thereof becoming
Final, then the parties’ obligations under this Section shall survive the Closing until the FCC
Order and all such consents and extensions become Final.

5.9 Publicity. Neither Buyer nor Seller (nor any of their Affiliates) shall issue or
cause the publication of any press release or any other public statement or any correspondence or
other communication with respect to the execution and Closing of this Agreement unless such release
or statement has been consented to by the other party hereto; provided, however, that if any
release or public statement is required by applicable law or in connection with a communication to
Buyer’s or Seller’s shareholders, Buyer or Seller shall be permitted to make such disclosure after
the other party hereto shall have had the prior opportunity to review and comment thereon for at
least one (1) Business Day prior to such disclosure.

5.10 Taxes.

(a) Seller shall be liable for and shall pay when due all Taxes (whether assessed or
unassessed) applicable to the Assets or the Station, in each case attributable to periods (or
portions thereof) ending on or prior to the Effective Time, Buyer shall be liable for and shall pay
when due all Taxes (whether assessed or unassessed) applicable to the Assets or the Station, in
each case attributable to periods (or portions thereof) beginning after the Effective Time. For
purposes of this Section 5.10(a), any period beginning before and ending after the Effective Time
shall be treated as two partial periods, one ending at the Effective Time and the other beginning
after the Effective Time.

(b) All Returns not required to be filed on or before the date hereof (i) will, to the extent
required to be filed on or before the Effective Time, be timely filed (giving consideration to any
applicable extensions) by Seller in accordance with all applicable Laws, and (ii) as of the time of
filing, will correctly reflect, in all material respects, the income, business, assets, operations,
activities and status of the Assets, Station and Seller and any other information required to be
shown therein.

(c) Seller or Buyer, as the case may be, shall provide reimbursement for any Tax paid by the
other party, all or a portion of which is the responsibility of Seller or Buyer, as the case may
be, in accordance with the terms of this Agreement. Within a reasonable time before the payment of
any such Tax, the party paying such Tax shall give notice to the other party of the Tax payable and
the portion that is the liability of each party, although failure to do so will not relieve the
other party from its liability hereunder.

 

20

 

5.11 Confidentiality. Any and all information, disclosures, knowledge or facts
regarding Buyer and its operations derived from or resulting from Seller’s acts or conduct
(including, without limitation, acts or conduct of Seller’s managers, partners, officers,
employees, accountants, counsel, agents, consultants or representatives, or any of them
(collectively, “Representatives”)) under the provisions of this Section or otherwise obtained by
Seller (or its Representatives) pursuant to or in connection with this Agreement, shall be
confidential and shall not be divulged, disclosed or communicated to any other Person, except as
required by law and to Seller’s Representatives and their respective attorneys for the purpose of
consummating the transactions contemplated by this Agreement and Seller shall be responsible for
any breach of confidentiality by any such Person. If this Agreement terminates before Closing,
Seller shall return promptly any information obtained regarding Buyer and Seller shall instruct
their Representatives to return any such information.

5.12 Exclusivity. Seller will not (i) solicit, initiate, or knowingly encourage the
submission of any proposal or offer from any Person relating to the acquisition of any of any
portion of the Assets or the Station or (ii) participate in any negotiations regarding, furnish any
information with respect to, assist, or facilitate in any other manner any effort or attempt by any
Person to do or seek any of the foregoing. Seller will notify Buyer promptly if any Person makes
any proposal, offer, inquiry or contact with respect to any of the foregoing.

ARTICLE 6

COVENANTS OF BUYER PENDING THE CLOSING

Buyer covenants and agrees that from date hereof until the completion of the Closing:

6.1 Consummation of Agreement. Subject to the provisions of Section 11.1, Buyer shall
fulfill and perform all covenants and obligations on its part to be fulfilled and performed under
this Agreement and to cause the transactions contemplated by this Agreement to be fully carried.

6.2 Notice of Proceedings. Buyer will promptly notify Seller in writing upon: (a)
becoming aware of any order or decree or any complaint praying for an order or decree restraining
or enjoining the consummation of this Agreement or the transactions contemplated hereunder; or (b)
receiving any notice from any Government Agency of its intention: (i) to institute an investigation
into, or institute a suit or proceeding to restrain or enjoin, the consummation of this Agreement
or such transactions, or (ii) to nullify or render ineffective this Agreement or such transactions
if consummated.

6.3 Representations and Warranties. Buyer shall give detailed written notice to
Seller promptly on learning of the occurrence of any breach in any material respect of any of
Buyer’s representations or warranties contained in this Agreement; provided, however, that any such
notice shall not affect Buyer’s liabilities or obligations hereunder or Seller’s rights and
interests hereunder.

 

21

 

6.4 Publicity. None of Buyer or any of its Affiliates shall issue or cause the
publication of any press release or any other public statement or any correspondence or other
communication with respect to the execution and Closing of this Agreement unless such release or
statement has been consented to by Seller or if release or public statement is required by
applicable law and then only after Seller shall have had the prior opportunity to review and
comment thereon for at least one (1) Business Day prior to such required disclosure.

6.5 Contracts Not to be Assumed. As contemplated by Section 2.1(d) and Section
5.2(h), from time to time following the date hereof, Seller may request that Buyer consent to
Seller entering into additional Contracts. If Buyer so consents, such additional Contracts shall
be deemed to be Assumed Contracts and added to the Schedules to this Agreement and shall be
assigned to and assumed by Buyer at the Closing. If Seller enters into any Contracts after the
date hereof without Buyer’s
consent, in addition to any other remedies Buyer may have under this Agreement, such Contracts
may be accepted or rejected at Closing by Buyer in its sole discretion.

6.6 Confidentiality. Any and all information, disclosures, knowledge or facts
regarding Parent, Seller, the Assets and the Station and their operations derived from or resulting
from Buyer’s acts or conduct (including, without limitation, acts or conduct of Buyer’s
Representatives) under the provisions of this Section or otherwise obtained by Buyer (or its
Representatives) pursuant to or in connection with this Agreement (other than any information,
knowledge or fact that is or becomes part of the public domain other than as a result of breach of
this Section by Buyer or its Representatives), shall be confidential and shall not be divulged,
disclosed or communicated to any other Person, except as required by law and to Buyer’s
Representatives and their respective attorneys for the purpose of consummating the transactions
contemplated by this Agreement and Buyer shall be responsible for any breach of confidentiality by
any such Person. If this Agreement terminates before Closing, Buyer shall return promptly any
information obtained regarding Parent, Seller, the Station or the Assets and Buyer shall instruct
its Representatives to return any such information.

6.7 Consents. Buyer shall cooperate with Seller and use its commercially reasonable
efforts to obtain the consent or approval of any third Person required under any Contract in order
to assign any such Contract from Seller to Buyer including by providing such assurances as to
financial capability, resources and creditworthiness as may be reasonably requested by any third
Person whose consent or approval is sought in connection with the transactions contemplated hereby.

 

22

 

ARTICLE 7

CONDITIONS TO THE OBLIGATIONS OF SELLER

The obligations of Seller under this Agreement are, at their option, subject to the
fulfillment of the following conditions before or on the Closing Date:

7.1 Representations, Warranties and Covenants.

(a) Representations True. The representations and warranties of Buyer made in this
Agreement that are qualified as to materiality shall be true and correct on the date hereof and on
and as of the Closing Date as though made on and as of the Closing Date and all other
representations and warranties of Buyer made in this Agreement shall be true and correct in all
material respects on the date hereof and on and as of the Closing Date as though made on and as of
the Closing Date; provided, however, representations and warranties that by their terms speak as of
a specific date need be true and correct in all respects or all material respects, as the case may
be, only as of such specified date;

(b) Buyer Compliance. Buyer shall have performed and complied in all material
respects with each and every covenant and agreement required by this Agreement to be performed or
complied with by it before or on the Closing Date;

(c) Certificate of Buyer. Buyer shall furnish Seller with a certificate, dated the
Closing Date and duly executed by an officer of Buyer to the effect that the conditions set forth
in Sections 7.1(a) and (b) have been satisfied; and

(d) Other Documents. Buyer shall furnish Seller with such certificates, documents or
instruments with respect to Buyer as Seller may have reasonably requested before the Closing to
carry out the intent and purposes of this Agreement.

7.2 Proceedings.

(a) No Injunction. No party shall be subject to any restraining order or injunction
restraining or prohibiting the consummation of the transactions contemplated hereby.

(b) Postponement. In the event such a restraining order or injunction is in effect,
this Agreement may not be terminated by Seller as result of the failure of the condition set forth
in Section 7.2(a) prior to the Final Closing Date but the Closing shall be delayed during such
period.

7.3 Deliveries. Buyer shall have complied with each and every one of its obligations
set forth in Section 9.2.

7.4 Authorizations. Except as otherwise contemplated by Section 2.6, the FCC Order
shall have been granted and shall be effective.

7.5 Other Consents. Buyer shall have obtained all consents, approvals and waivers of
Government Agencies and other persons or parties as are required for the consummation of the
transactions contemplated by this Agreement.

 

23

 

ARTICLE 8

CONDITIONS TO THE OBLIGATIONS OF BUYER

The obligations of Buyer under this Agreement are, at its option, subject to the fulfillment
of the following conditions before or on the Closing Date:

8.1 Representations, Warranties and Covenants.

(a) Representations True. The representations and warranties of Seller made in this
Agreement that are qualified as to materiality shall be true and correct on the date hereof and on
and as of the Closing Date as though made on and as of the Closing Date and all other
representations and warranties of Seller made in this Agreement shall be true and correct in all
material respects on the date hereof and on and as of the Closing Date as though made on and as of
the Closing Date; provided, however, representations and warranties that by their terms speak as of
a specific date need be true and correct in all respects or all material respects, as the case may
be, only as of such specified date;

(b) Seller’s Performance. Seller shall have performed and complied in all material
respects with each and every covenant and agreement required by this Agreement to be performed or
complied with by them before or on the Closing Date;

(c) Seller’s Certificates. Seller shall have furnished Buyer with certificates, dated
the Closing Date and duly executed by an officer of Seller, to the effect that the conditions set
forth in Sections 8.1(a) and (b) have been satisfied; and

(d) Other Documents. Seller shall furnish Buyer with such certificates, documents or
instruments with respect to Seller as Buyer may have reasonably requested before the Closing to
carry out the intent and purposes of this Agreement.

8.2 Proceedings.

(a) No Injunction. No party shall be subject to any restraining order or injunction
restraining or prohibiting the consummation of the transactions contemplated hereby.

(b) Postponement. If such a restraining order or injunction is in effect, then this
Agreement may not be terminated by Buyer as result of the failure of the condition set forth in
Section 8.2(a) prior to the Final Closing Date but the Closing shall be delayed during such period.

8.3 Liens Released. All Security Interests pertaining to the Assets shall be released
of record and there shall be no liens on the Assets, except for Permitted Encumbrances.

8.4 Deliveries. Seller shall have complied with each and every one of its respective
obligations set forth in Section 9.1.

8.5 Other Consents. Seller shall have obtained all Material Consents, including,
without limitation, all approvals and waivers of Government Agencies as are required for the
consummation of the transactions contemplated by this Agreement, without any change in the terms
thereof, except these approved by Buyer in writing.

8.6 Authorizations. Except as otherwise contemplated by Section 2.6, the FCC Order
with respect to all Authorizations issued by the FCC shall have been granted or issued (and not
when such FCC Order becomes Final).

 

24

 

ARTICLE 9

ITEMS TO BE DELIVERED AT THE CLOSING

9.1 Deliveries by Seller. At the Closing, Seller shall deliver to Buyer, duly
executed by Seller or such other signatory as may be required by the nature of the document:

(a) Bills of Sale; Assignments. Bills of sale, assignments of Authorizations,
assignments and assumptions, certificates of title, endorsements, assignments and other good and
sufficient instruments of sale, conveyance, transfer and assignment, in form and substance
reasonably satisfactory to Buyer, sufficient to sell, convey, transfer and assign to Buyer all
right, title and interest of Seller in and to the Assets and the Station and to quiet Buyer’s title
thereto;

(b) Resolutions. Certified copies of resolutions, duly adopted by the members,
managers, partners or directors, as applicable, of Seller, which shall be in full force and effect
at the time of the Closing, authorizing the execution, delivery and performance by Seller of this
Agreement and the consummation of the transactions contemplated hereby;

(c) Officer’s Certificate. The certificate referred to in Section 8.1(c);

(d) Consents. All Material Consents to Buyer in form and content reasonably
satisfactory to Buyer;

(e) New Lease. The lease agreement between USFR Equity Drive Property LLC and Buyer,
the form of which is attached hereto as Exhibit B (the “New Lease”); and

(f) Escrow Agreement Instructions. The joint instructions referred to in Section
2.4(c)(ii).

9.2 Deliveries by Buyer. At the Closing, Buyer shall deliver to Seller, duly executed
by Buyer or such other signatory as may be required by the nature of the document:

(a) Purchase Price. The Purchase Price, which shall be paid in the manner specified
in Section 2.4;

(b) Assumption Agreements. An instrument or instruments of assumption of the Assumed
Contracts by Buyer, in form and substance reasonably satisfactory to Seller;

(c) Resolutions. Certified copies of resolutions, duly adopted by the board of
directors of Buyer, which shall be in full force and effect at the time of the Closing, authorizing
the execution, delivery and performance of this Agreement, the Promissory Note, the Security
Agreement and the consummation of the transactions contemplated hereby by Buyer;

(d) Officer’s Certificate. The certificate referred to in Section 7.1(c);

(e) New Lease. The New Lease;

(f) Promissory Note. The Promissory Note referred to in Section 2.4(b);

(g) Security Agreement. The security agreement between Buyer and Seller, the form of
which is attached hereto as Exhibit D; and

(h) Escrow Agreement Instructions. The joint instructions referred to in Section
2.4(c)(ii).

 

25

 

ARTICLE 10

SURVIVAL; INDEMNIFICATION

10.1 Survival. All representations and warranties contained in this Agreement or in
any Schedule, certificate, agreement or statement delivered pursuant hereto, shall survive the
Closing until twelve (12) months after the Closing Date whereon all such representations,
warranties, and indemnities with respect thereto, shall expire and terminate and shall be of no
further force or effect; provided, however, that representations and warranties and indemnities
with respect to Sections 3.1, 3.2, 3.3, 3.6, 3.10(c)(i) and (ii), 4.2 or 4.4 (collectively,
“Superior Claims”) shall survive for the full period of all statute of limitations under applicable
law plus 30 days. Notwithstanding the foregoing, if prior to the close of business on the day
before the expiration of the survival or limitations period, an Indemnifying Party shall have been
properly notified of a Deficiency and such Deficiency shall not have been finally resolved or
disposed of at such date, such Deficiency shall continue to survive and shall remain a basis for
indemnity hereunder until such Deficiency is finally resolved or disposed of in accordance with the
terms hereof.

10.2 Basic Provision.

(a) Buyer Indemnitees. Parent and each Seller (each an “Indemnifying Party”) hereby,
jointly and severally, agree to indemnify and hold harmless Buyer, its directors, officers, agents,
representatives and employees and all persons that directly or indirectly, through one or more
intermediaries, control, are controlled by, or are under common control with Buyer, and its
respective successors and assigns (collectively, the “Buyer Indemnitees”) from, against and with
respect to, and to reimburse Buyer Indemnitees for the amount of any and all Deficiencies.

(b) Seller Indemnitees. Buyer (“Indemnifying Party”), hereby agrees to indemnify and
hold harmless each Seller, Parent and their respective partners, members, officers, agents,
representatives, trustees, employees and all persons that directly or indirectly, through one or
more intermediaries, control, are controlled by, or are under common control with Seller or Parent
as applicable, and its respective successors and assigns (collectively, the “Seller Indemnitees”)
from, against and with respect to, and to reimburse Seller Indemnitees for the amount of any and
all Deficiencies.

 

26

 

10.3 Definition of “Deficiencies.”

(a) Deficiencies for Buyer. As used in this Article 10, the term “Deficiencies” when
asserted by Buyer Indemnitees or arising out of a third party claim against Buyer Indemnitees shall
mean any and all losses, fines, damages, liabilities, judgments and expenses (including amounts
paid in settlement and reasonable Legal Expenses) sustained by Buyer Indemnitees and arising out
of, related to, caused by, or resulting from:

(i) Any misrepresentation or breach of any representation or warranty of Seller or Parent
contained in this Agreement or any Schedule, certificate or agreement delivered by Seller or Parent
pursuant to Section 9.1;

(ii) Any breach of any covenant, obligation or agreement of Seller or Parent contained in this
Agreement or any Schedule, certificate or agreement delivered by Seller or Parent pursuant to
Section 9.1;

(iii) All Taxes relating to the ownership and operation of the Station or the Assets prior to
the Effective Time;

(iv) Except for the Assumed Liabilities, Seller’s operation of the Station or ownership of the
Assets prior to the Effective Time, including, without limitation, the Excluded Liabilities; or

(v) The matters set forth on Schedules 3.7, 3.8 and 3.12.

(b) Deficiencies for Seller. As used in this Article 10, the term “Deficiencies” when
asserted by Seller Indemnitees or arising out of a third party claim against Seller Indemnitees
shall mean any and all losses, damages, liabilities, judgments and expenses (including amounts paid
in settlement and reasonable Legal Expenses) sustained by Seller Indemnitees and arising out of,
related to, caused by, or resulting from:

(i) Any misrepresentation or breach of any representation or warranty of Buyer contained in
this Agreement or any Schedule, certificate, agreement or written statement delivered by Buyer
pursuant to Section 9.2;

(ii) Any breach of any covenant, obligation or agreement of Buyer contained in this Agreement
or any Schedule, certificate, agreement or written statement delivered by Buyer pursuant to Section
9.2; or

(iii) Except for the Excluded Liabilities, Buyer’s operation of the Station or ownership of
the Assets after the Effective Time (including, without, limitation, the Assumed Liabilities).

10.4 Procedures for Establishment of Deficiencies.

(a) Claim Asserted. If any claim is to be asserted by any third party against Buyer
Indemnitees or Seller Indemnitees (Buyer Indemnitees or Seller Indemnitees, as the case may be,
hereinafter, the “Indemnitees”) that, if sustained, could reasonably be expected to result in a
Deficiency, then the Indemnitees, promptly and in all events within fifteen (15) Business Days
after learning of such claim, shall notify the Indemnifying Party of such claim; provided, however,
that the failure to so notify the Indemnifying Party shall relieve the Indemnifying Party from
liability under this Agreement with respect to such claim only if, and only to the extent that,
such failure to notify the Indemnifying Party results in (i) the forfeiture by the Indemnifying
Party of rights and defenses otherwise available to the Indemnifying Party with respect to such
claim or (ii) material prejudice to the Indemnifying Party with respect to such claim. The
Indemnitees
shall permit the Indemnifying
Party to assume the defense against such claim, at the Indemnifying Party’s sole

 

27

 

expense and through legal counsel reasonably acceptable to the Indemnitees. The
Indemnitees shall, at their option and expense, have the right to participate in any defense
undertaken by the Indemnifying Party with legal counsel of their own selection, subject to the
Indemnifying Party’s right to control the defense thereof. The parties will cooperate fully in any
such action and shall make available to each other any books or records useful for the defense of
such claim. No settlement or compromise of any claim that may result in a Deficiency may be made
by the Indemnifying Party without the prior written consent of the Indemnitees unless: (a) before
such settlement or compromise, the Indemnifying Party acknowledges in writing its obligation to pay
in full the amount of the settlement or compromise and all associated expenses, (b) the settlement
or compromise consists solely of money damages and the Indemnitees are furnished with security
reasonably satisfactory to the Indemnitees that the Indemnifying Party will in fact pay such amount
and expenses and (c) the settlement or compromise does not involve any admission of wrong doing on
the part of any Indemnitee and the Indemnifying Party obtains a release of the Indemnitees from all
liability with respect to such claim. No Indemnitee may settle or compromise any claim or consent
to the entry of any judgment with respect to which indemnification is being sought hereunder
without the prior written consent of the Indemnifying Party which consent shall not be unreasonably
withheld or delayed.

(b) Notice. If the Indemnitees assert the existence of any Deficiency against the
Indemnifying Party, such Indemnitees shall give written notice to the Indemnifying Party of the
nature and amount of the Deficiency asserted and the basis of the claim. If the Indemnifying Party
within a period of thirty (30) days after the giving of the Indemnitees’ notice, shall not give
written notice to the Indemnitees announcing its intent to contest such assertion of the
Indemnitees (such notice by the Indemnifying Party being hereinafter referred to as the “Contest
Notice”), such assertion of the Indemnitees shall be deemed accepted and the amount of the
Deficiency shall be deemed established. If, however, that a Contest Notice is given to the
Indemnitees within such thirty- (30-) day period, then the contested assertion of a Deficiency
shall be resolved judicially.

(c) Agreement. The Indemnitees and the Indemnifying Party may agree in writing, at
any time, as to the existence and amount of a Deficiency and, on the execution of such agreement,
such Deficiency shall be deemed established.

10.5 Limitation on Deficiencies. Notwithstanding any other provision of this
Agreement: (a) an Indemnifying Party shall have no obligation to indemnify any Indemnitees from and
against any Deficiencies described in Sections 10.3(a)(i) or 10.3(b)(i) (other than Superior
Claims) until such Indemnitees have suffered Deficiencies by reason of all such breaches (or
alleged breaches) in excess of a $300,000.00 aggregate deductible (the “Deductible”) (in which case
such Indemnifying Party will only be obligated to indemnify such Indemnitees from and against
Deficiencies in excess of the Deductible); and (b) the Indemnitees shall not be indemnified
pursuant to this Article 10 with respect to any Deficiency described in Sections 10.3(a)(i),
10.3(a)(ii), 10.3(b)(i) and 10.3(b)(ii) (other than Superior Claim) if the aggregate of all
Deficiencies for which such Indemnitee has received indemnification pursuant to this Article 10 has
exceeded $3.25 million (the “Cap”). No Indemnified Party shall be entitled to indemnification for
any Deficiencies, to the extent such Indemnified Party has received indemnification from insurance
proceeds. The provisions of this
Section shall not apply to the Closing pro rations made pursuant to Section 2.7. Following
the Effective Time, the parties acknowledge and agree that their sole and exclusive remedy with
respect to any and all claims and Deficiencies for any breach of any representation, warranty,
covenant, agreement or obligation set forth herein or otherwise related to the subject matter of
this Agreement, shall be pursuant to the indemnification provisions set forth in this Article 10.
No Indemnifying Party shall be liable for any punitive, consequential, incidental or special
damages, unless such damages are actually awarded to a third party pursuant to a third party claim
for which indemnification is available hereunder.

 

28

 

ARTICLE 11

MISCELLANEOUS

11.1 Termination of Agreement. This Agreement may be terminated in writing at any
time on or before the Closing Date:

(a) by the mutual consent of Seller and Buyer;

(b) by either party hereto if the Closing has not taken place on or before 180 days from the
date hereof (the “Final Closing Date”); provided, however, that if the Closing has not yet occurred
by then due to the condition set forth in Section 8.6 having not been satisfied, the Final Closing
Date shall be, unless otherwise agreed in writing by the parties hereto, 240 days from the date
hereof; provided, further however, that the 180-day and 240-day periods specified in this
subsection (b) shall be extended by the number of days, if any, that the FCC is closed for regular
business, on days that it normally would be open for regular business, because of the Congressional
budget issues that exist as of the date of this Agreement and might result in a government shutdown
for all but essential services.

(c) by Buyer, if Seller has breached any of its material obligations under this Agreement and
Seller has not cured such breach within thirty (30) days after receipt by Seller of notice of
breach from Buyer and Buyer has satisfied or is prepared and able (but for Seller’s defaults) to
satisfy the conditions of Article 7; and

(d) by Seller, if Buyer has breached any of its material obligations under this Agreement and
Buyer has not cured such breach within thirty (30) days after receipt by Buyer of notice of breach
from Seller and Seller has satisfied or is prepared and able (but for Buyer’s defaults) to satisfy
the conditions of Article 8.

Subject to Section 11.2 hereof, a termination pursuant to this Article 11 shall not relieve any
party of any liability it would otherwise have for a willful breach of this Agreement.

If this Agreement is terminated rightfully pursuant to this Article 11, all further obligations of
the parties hereunder shall terminate, except that all obligations for confidentiality under
Sections 5.12 and 6.4 shall survive such termination for a period of three (3) years.

 

29

 

11.2 Liabilities on Termination or Breach. The parties acknowledge that the operation
of the Station is of a special, unique and extraordinary character. On a material breach by Seller
of its
representations, warranties, covenants and agreements under this Agreement, in addition to
such other remedies available to Buyer, subject to the limitations set forth in Section 10.5, Buyer
shall be entitled to enforce this Agreement by a decree or decrees of specific performance
requiring Seller to fulfill its obligations under this Agreement. On a material breach by Buyer of
its representations, warranties, covenants and agreements under this Agreement, subject to the
limitations set forth in Section 10.5, Seller shall have all remedies available to Seller at law or
in equity. Notwithstanding anything contained in this Agreement to the contrary, in the event the
Closing does not occur and this Agreement is terminated by Seller pursuant to Section 11.1(b) or
11.1(d), Parent and Sellers sole and exclusive remedy shall be the receipt of the Escrow Property
pursuant to the terms of the Escrow Agreement which the parties hereto agree shall constitute
liquidated damages and not a penalty.

11.3 Expenses. Each party hereto shall bear all of its expenses incurred in
connection with the transactions contemplated by this Agreement including, without limitation,
accounting and legal fees incurred in connection herewith; provided, however, that Buyer and Seller
shall each pay one-half of the filing fees with the FCC and Buyer shall pay any sales or transfer
taxes arising from the transfer of the Assets to Buyer.

11.4 Remedies Cumulative. Subject to the limitations set forth in this Agreement, the
remedies provided in this Agreement shall be cumulative and shall not preclude the assertion by any
party hereto of any other rights or the seeking of any other remedies against the other party
hereto.

11.5 Preservation of Records. Buyer will preserve and make available (including the
right to inspect and copy) to Seller, its attorneys and accountants, for three (3) years after the
Closing Date and during normal business hours, such of the books, records, files, correspondence,
memoranda and other documents transferred pursuant to this Agreement as Seller may reasonably
require in connection with any legitimate purpose, including, but not limited to, the preparation
of tax reports and returns and the preparation of financial statements. During the three-year
period, Buyer will not dispose of or destroy any such books, records, files, correspondence,
memoranda or other documents without giving thirty (30) days’ prior written notice to Seller, to
permit Seller, at its expense, to examine, duplicate or take possession of all or part thereof.

11.6 Non-Assignable Contracts. Nothing contained in this Agreement shall be construed
as an assignment or an attempted assignment of any Assumed Contract that is by law non-assignable
without the consent of the other party or parties thereto, unless such consent shall be given.
Seller shall use its commercially reasonable efforts (and Buyer shall assist Seller) both after and
before the Closing to obtain such consents to the assignment or transfer of Assumed Contracts to
vest in Buyer all of Seller’s right, title and interest in such Assumed Contracts, in all cases in
which such consent is required for assignment or transfer. If such consent is not obtained, Seller
shall cooperate with Buyer in any arrangements necessary or desirable, on commercially reasonable
terms, to provide for Buyer to have the benefits and to have Buyer assume the burdens arising after
the Closing Date thereunder, including, without limitation, enforcement for the benefit of Buyer,
and assumption by Buyer of the costs of enforcing, any and all rights of Seller thereunder against
the other party thereto arising out of the cancellation thereof by such other party or otherwise.

 

30

 

11.7 Further Assurances. From time to time before, on and after the Closing Date,
each party hereto will execute all such instruments and take all such actions as any other party,
being advised by counsel, shall reasonably request, without payment of further consideration, in
connection with carrying out and effectuating the intent and purpose hereof and all transactions
and things contemplated by this Agreement including, without limitation, the execution and delivery
of any and all confirmatory and other instruments in addition to those to be delivered on the
Closing Date, and any and all actions which may reasonably be necessary or desirable to complete
the transactions contemplated hereby. The parties shall cooperate fully with each other and with
their respective counsel and accountants in connection with any steps required to be taken as part
of their respective obligations under this Agreement

11.8 Risk of Loss. The risk of loss, damage or destruction to any of the Assets from
fire or other casualty or cause shall be borne by Seller at all times before the Effective Time.
On any such loss, damage or destruction, the proceeds of any claim for any loss, payable under any
insurance policy with respect thereto, shall be used to repair, replace or restore any such
property to its former condition, subject to the conditions stated below. It is expressly
understood and agreed that, in the event of any loss or damage to any of the Assets from fire,
casualty or other causes before the Closing, Seller shall notify Buyer thereof in writing
immediately. Such notice shall specify with particularity the loss or damage incurred, the cause
thereof (if known or reasonably ascertainable) and the insurance coverage. If the damaged property
is not completely repaired, replaced or restored on or before the Closing Date, Buyer at its sole
option: (a) may elect to postpone Closing until such time as the property has been completely
repaired, replaced or restored to the reasonable satisfaction of Buyer if the repair, replacement
or restoration can be accomplished within one month following the date of the loss or damage or the
Final Closing Date, whichever is the earlier and (b) may elect to consummate the Closing and accept
the property in its then condition, in which event Seller shall pay to Buyer all proceeds of
insurance and assign to Buyer the right to any unpaid proceeds; or (c) terminate this Agreement
without liability to any party.

11.9 Employees. Except as provided otherwise in this Section, Seller shall terminate
or reassign (and be liable for and shall discharge such liabilities as they become due) all of the
Station’s employees effective as of the Effective Time. Buyer shall not be obligated to offer
employment to any such employees of the Station, although Buyer may interview and offer employment
to any such employee of the Station should it choose to do so, in its sole discretion, on
employment terms and conditions determined in its sole discretion.

ARTICLE 12

GENERAL PROVISIONS

12.1 Successors and Assigns. Except as otherwise expressly provided herein, this
Agreement shall be binding on and inure to the benefit of the parties hereto, and their respective
representatives, successors and assigns. Seller may not assign any rights or delegate any duties
hereunder without the prior written consent of Buyer. Buyer may assign some or all of its rights
and obligations hereunder to any Subsidiary or Affiliate of Buyer, as long as Buyer remains fully
obligated to fulfill all obligations of Buyer under this Agreement.

12.2 Amendments; Waivers. The terms, covenants, representations, warranties and
conditions of this Agreement may be changed, amended, modified, waived, discharged or terminated
only by a written instrument executed by the party waiving compliance. The failure of any party at
any time or times to require performance of any provision of this Agreement shall in no manner
affect the right of such party at a later date to enforce the same. No waiver by any party of any
condition or the breach of any provision, term, covenant, representation or warranty contained in
this Agreement, whether by conduct or otherwise, in any one or more instances shall be deemed to be
or construed as a further or continuing waiver of any such condition or of the breach of any other
provision, term, covenant, representation or warranty of this Agreement.

 

31

 

12.3 Notices. All notices, requests, demands and other communications required or
permitted under this Agreement shall be in writing (which shall include notice by facsimile or
other electronic transmission) and shall be deemed to have been duly made and received on the first
Business Day after such notice has been personally served, delivered by FedEx or a similar
overnight courier service, expenses prepaid, or, if sent by electronic transmission or other
facsimile communications equipment, the first Business Day after delivery by such equipment,
addressed as set forth below:

	 	(a)	 	If to Seller then to:

	 	 	 	US Farm & Ranch Supply Company, Inc.

11150 Equity Drive

Houston, Texas 77041

Facsimile Number: (713) 403-6997

Attention: Gregory L. Brown

with a copy, given in the manner prescribed above, to:

King & Spalding LLP

1100 Louisiana, Suite 4000

Houston, Texas 77002-5213

Facsimile Number: (713) 751-3290

Attention: John L. Keffer, Esq.

	 
	 	(b)	 	If to Buyer then to:

	 
	 	 	 	Spanish Broadcasting System, Inc.

Legal Department

2601 South Bayshore Drive, PH II

Coconut Grove, Florida 33133

Phone: (305) 441-6901

Facsimile Number: (866) 239-1521

Attn: Melanie M. Montenegro, Esq.

	 
	 	 	 	with a copy, given in the manner prescribed above, to:

	 
	 	 	 	Lombardo Dufresne LLP

275 Madison Avenue, 35th Floor

New York, New York 10016

Telephone: (212) 682-6935

Facsimile: (212) 619-1028

Attn: Louis Lombardo, Esq.

 

32

 

Any party may alter the address to which communications are to be sent by giving notice of such
change of address in conformity with the provisions of this Section providing for the giving of
notice.

12.4 Captions. The captions of Articles and Sections of this Agreement are for
convenience only and shall not control or affect the meaning or construction of any of the
provisions of this Agreement.

12.5 Governing Law; Venue. THIS AGREEMENT AND ALL QUESTIONS RELATING TO ITS VALIDITY,
INTERPRETATION, PERFORMANCE AND ENFORCEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS. The
parties hereby irrevocably submit to the exclusive jurisdiction of the United States Federal Court
located in the State of New York in connection with any proceeding arising out of or relating to
this Agreement or the transactions contemplated hereby. The parties hereby waive the right to
transfer or change the venue of any suit, action or other proceeding brought in accordance with
this Agreement or to claim that any such proceeding has been brought in an inconvenient forum.

12.6 Entire Agreement. This Agreement, the Exhibits and the Schedules hereto, and the
other documents delivered hereunder constitute the full and entire understanding and agreement
between the parties with regard to the subjects hereof and thereof, and supersede all prior
agreements, understandings, inducements or conditions, express or implied, oral or written,
relating to the subject matter hereof. The express terms hereof control and supersede any course
of performance and/or usage of trade inconsistent with any of the terms hereof.

12.7 Execution: Counterparts and Facsimile. This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original as against any party whose
signature appears thereon, and all of which shall together constitute the same instrument. This
Agreement shall become binding when one or more counterparts hereof, individually or taken
together, shall bear the signatures of all of the parties reflected hereon as the signatories.
Delivery of an executed counterpart of a signature page to this Agreement by facsimile or other
electronic transmission shall be as effective as delivery of a manually executed counterpart of
this Agreement.

12.8 Gender and Tense. Where appropriate to the context, pronouns of other terms
expressed in one number or gender will be deemed to include all other numbers or genders. The use
of a word in one tense will include the other tenses, where appropriate to the context.

12.9 Third-Party Beneficiaries. This Agreement is intended to benefit only the
parties to this Agreement, their successors and permitted assigns. No other Person is an intended
or incidental beneficiary of this Agreement.

 

33

 

12.10 No Party Deemed Drafter. The parties acknowledge that they have been
represented by counsel in connection with this Agreement and the transactions contemplated hereby.
Accordingly, any rule of law or any legal decision that would require interpretation of any claim
ambiguities in this Agreement against the party that drafted it has no application and is expressly
waived. Provisions of this Agreement shall be interpreted in a reasonable manner to affect the
intent of the parties.

12.11 Severability. If any provision of this Agreement or the application thereof to
any Person or circumstance shall be invalid or unenforceable to any extent, the remainder of this
Agreement and the application of such provision to other Persons or circumstances shall not be
affected thereby and shall be enforced to the greatest extent permitted by law, but only as long as
the continued validity, legality and enforceability of such provision or application does not
materially (a) alter the terms of this Agreement or (b) diminish the benefits or burdens of this
Agreement.

12.12 Waiver of Jury Trial. EACH PARTY HEREBY (A) COVENANTS AND AGREES NOT TO ELECT A
TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY A JURY, AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY
FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST. THIS WAIVER OF RIGHT TO
TRIAL BY JURY IS SEPARATELY GIVEN, KNOWINGLY AND VOLUNTARILY, BY EACH PARTY, AND THIS WAIVER IS
INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A JURY
TRIAL WOULD OTHERWISE ACCRUE. EITHER PARTY IS HEREBY AUTHORIZED AND REQUESTED TO SUBMIT THIS
AGREEMENT TO ANY COURT HAVING JURISDICTION OVER THE SUBJECT MATTER AND THE PARTIES TO THIS
AGREEMENT, SO AS TO SERVE AS CONCLUSIVE EVIDENCE OF THE PARTIES’ WAIVER OF THE RIGHT TO JURY TRIAL.

[Remainder of Page Intentionally Left Blank; Signature Page Follows]

 

34

 

IN WITNESS WHEREOF, the parties have caused this Asset Purchase Agreement to be duly executed
by their duly authorized signatories, all as of the day and year first above written.

	 	 	 	 	 	 	 	 	 

	 	 	SELLER:
	 
	 	 	 	 	 	 	 	 
	 	 	CHANNEL 55/42 OPERATING, LP
	 
	 	 	 	 	By:	 	US Farm & Ranch Supply Company, Inc., its Sole Member
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Gregory L. Brown
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name: Gregory L. Brown 

Title:   President
	 
	 	 	 	 	 	 	 	 
	 	 	HUMANITY INTERESTED MEDIA, L.P.
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	HIM GP, LLC, its General Partner
	 
	 

	 	 	 	 	 	By:
	 	/s/ Gregory L. Brown
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name: Gregory L. Brown 

Title:   President
	 
	 	 	 	 	 	 	 	 
	 	 	USFR TOWER OPERATING, LP
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Channel 55/42 Broadcast, LLC, its General Partner
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	US Farm & Ranch Supply Co., Inc., its Sole Member
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Gregory L. Brown
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name: Gregory L. Brown

Title:   President
	 
	 	 	 	 	 	 	 	 
	 	 	USFR EQUITY DRIVE PROPERTY LLC
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gregory L. Brown

	 

	 	 	 	 
	 
	 
	 
	 

	 	 	 	Name: Gregory L. Brown

	 

	 	 	 	Title:   President

 

35

 

	 	 	 	 	 
	 	PARENT:

US FARM & RANCH SUPPLY COMPANY, INC.,

 solely for
the purposes of Sections 3.1, 3.3, 3.4 and Article 10

 	 
	 	By:  	/s/ Gregory L. Brown
 	 
	 	 	Name:  	Gregory L. Brown 	 
	 	 	Title:  	President 	 
	 

 

36

 

	 	 	 	 	 
	 	BUYER:

SPANISH BROADCASTING SYSTEM, INC.

 	 
	 	By:  	/s/   Joseph A. Garcia
 	 
	 	 	Name:  	Joseph A. Garcia 	 
	 	 	Title:  	Sr. Executive Vice President 	 
	 

 

37exv10w1

Exhibit 10.1

EXECUTION COPY

 

CREDIT AGREEMENT

DATED AS OF

May 2, 2011

among

CORPORATE PROPERTY ASSOCIATES 9, L.P., A DELAWARE LIMITED PARTNERSHIP

PAPER LIMITED LIABILITY COMPANY

TORREY PINES LIMITED PARTNERSHIP

WALS (IN) LLC

as Borrowers

W.P. CAREY & CO. LLC,

as Guarantor

The Lenders Party Hereto,

and

BANK OF AMERICA, N.A.,

as Administrative Agent

 

 

 

TABLE OF CONTENTS

	 	 	 
	 	 	Page
	Article I DEFINITIONS
	 	1
	Section 1.1 Defined Terms
	 	1
	Section 1.2 Computations
	 	24
	Section 1.3 Terms Generally
	 	24
	Section 1.4 Accounting Terms; GAAP
	 	25
	 
	Article II THE CREDITS
	 	25
	Section 2.1 Commitments
	 	25
	Section 2.2 Loans and Borrowings
	 	25
	Section 2.3 Requests for Revolving Borrowings
	 	26
	Section 2.4 [Intentionally Omitted]
	 	27
	Section 2.5 [Intentionally Omitted]
	 	27
	Section 2.6 [Intentionally Omitted]
	 	27
	Section 2.7 Funding of Revolving Borrowings
	 	27
	Section 2.8 Interest Elections
	 	27
	Section 2.9 Termination and Reduction of Commitments
	 	29
	Section 2.10 Repayment of Loans; Evidence of Debt
	 	29
	Section 2.11 Prepayment of Loans
	 	30
	Section 2.12 Fees
	 	30
	Section 2.13 Interest
	 	31
	Section 2.14 Alternate Rate of Interest
	 	32
	Section 2.15 Increased Costs
	 	32
	Section 2.16 Break Funding Payments
	 	33
	Section 2.17 Taxes
	 	34
	Section 2.18 Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	34
	Section 2.19 Mitigation Obligations; Replacement of Lenders
	 	36
	 
	Article III REPRESENTATIONS AND WARRANTIES
	 	36
	Section 3.1 Organization; Powers
	 	36
	Section 3.2 Authorization; Enforceability
	 	37
	Section 3.3 Governmental Approvals; No Conflicts
	 	37
	Section 3.4 Financial Condition; No Material Adverse Effect
	 	37
	Section 3.5 Properties
	 	38
	Section 3.6 Litigation And Environmental Matters
	 	38
	Section 3.7 Compliance With Laws And Agreements
	 	39
	Section 3.8 Investment Company Status
	 	39
	Section 3.9 Taxes
	 	39
	Section 3.10 ERISA
	 	39
	Section 3.11 Disclosure
	 	39
	Section 3.12 SEC Reports
	 	39
	Section 3.13 Collateral; Security Interest
	 	40

i

 

	 	 	 
	 	 	Page
	Article IV CONDITIONS
	 	40
	Section 4.1 Closing Date
	 	40
	Section 4.2 Each Credit Event
	 	42
	 
	Article V AFFIRMATIVE COVENANTS
	 	42
	Section 5.1 Financial Statements and Other Information
	 	43
	Section 5.2 Notices of Material Events
	 	44
	Section 5.3 Existence; Conduct of Business
	 	46
	Section 5.4 Payment of Obligations
	 	46
	Section 5.5 Maintenance of Properties; Insurance
	 	46
	Section 5.6 Books and Records; Inspection Rights
	 	46
	Section 5.7 Compliance with Laws
	 	46
	Section 5.8 Use of Proceeds
	 	47
	Section 5.9 Distributions in the Ordinary Course
	 	47
	Section 5.10 ERISA Compliance
	 	47
	Section 5.11 Company Status
	 	47
	Section 5.12 Further Assurances
	 	47
	Section 5.13 Additional Deliveries
	 	48
	Section 5.14 Information Regarding Collateral
	 	48
	Section 5.15 Appraisals
	 	49
	Section 5.16 Post-Closing
	 	49
	 
	Article VI NEGATIVE COVENANTS
	 	50
	Section 6.1 Financial Covenants
	 	50
	Section 6.2 Liens
	 	51
	Section 6.3 Fundamental Changes
	 	51
	Section 6.4 Hedging Agreements
	 	52
	Section 6.5 Transactions with Affiliates
	 	52
	 
	Article VII EVENTS OF DEFAULT
	 	52
	Section 7.1 Events of Default
	 	52
	Section 7.2 Application of Funds
	 	55
	 
	Article VIII THE AGENT
	 	55
	Section 8.1 Appointment
	 	55
	Section 8.2 Administrative Agent’s Right as Lender
	 	55
	Section 8.3 Exculpatory Provisions
	 	56
	Section 8.4 Reliance by Agents
	 	56
	Section 8.5 Sub-Agents
	 	57
	Section 8.6 Resignation/Successor Administrative Agent
	 	57
	Section 8.7 Non-Reliance on Administrative Agent or Other Lenders
	 	57
	Section 8.8 Collateral and Guaranty Matters
	 	58
	 
	Article IX MISCELLANEOUS
	 	58
	Section 9.1 Notices
	 	58
	Section 9.2 Waivers; Amendments
	 	60
	Section 9.3 Expenses; Indemnity; Damage Waiver
	 	61

ii

 

	 	 	 
	 	 	Page
	Section 9.4 Successors and Assigns
	 	62
	Section 9.5 Survival
	 	64
	Section 9.6 Counterparts; Integration; Effectiveness
	 	64
	Section 9.7 Severability
	 	65
	Section 9.8 Right of Setoff
	 	65
	Section 9.9 Governing Law; Jurisdiction; Consent to Service of Process
	 	65
	Section 9.10 WAIVER OF JURY TRIAL
	 	66
	Section 9.11 Headings
	 	66
	Section 9.12 Confidentiality
	 	66
	Section 9.13 Interest Rate Limitation
	 	67
	Section 9.14 [Intentionally Omitted]
	 	67
	Section 9.15 USA Patriot Act
	 	67
	Section 9.16 No Advisory or Fiduciary Responsibility
	 	67
	Section 9.17 Joint and Several Liability of Borrowers
	 	67
	Section 9.18 Non Recourse Nature
	 	70
	 
	Article X GUARANTY
	 	72
	Section 10.1 The Guaranty
	 	72
	Section 10.2 Obligations Unconditional
	 	73
	Section 10.3 Reinstatement
	 	74
	Section 10.4 Certain Additional Waivers
	 	74
	Section 10.5 Remedies
	 	74
	Section 10.6 Guaranty of Payment; Continuing Guarantee
	 	74
	Section 10.7 California Specific Provisions
	 	74
	Section 10.8 Guaranty Not Secured
	 	75

	 	 	 	 	 
	Exhibits
	 	2.3	 	 	Borrowing Request for Revolving Loans

	 	2.10	(f)	 	Form of Note

	 	5.1	 	 	Financial Covenant Compliance Analysis

	 	5.1	(a)	 	Quarterly Compliance Certificate

	 	5.1	(b)	 	Annual Compliance Certificate

	 	9.4	(a)	 	Assignment and Acceptance

	 	 	 	 	 
	Schedules
	 	1.1	(a)	 	Lenders and Commitments

	 	1.1	(b)	 	CPA REITs

	 	1.1	(c)	 	Eligible Ground Leases

	 	1.1	(d)	 	Mortgaged Properties

	 	3.2	 	 	List of Company and Subsidiaries

	 	3.5	(c)	 	Lease Provisions

	 	3.5	(d)	 	Rent Roll

	 	3.6	 	 	Disclosed Matters

iii

 

CREDIT AGREEMENT

     THIS CREDIT AGREEMENT (this “Agreement”) is entered into as of May 2, 2011, among W.P.
Carey & Co. LLC, a Delaware limited liability company (together with its successors and permitted
assigns, the “Company”), as guarantor, Corporate Property Associates 9, L.P., a Delaware
Limited Partnership, Paper Limited Liability Company, Torrey Pines Limited Partnership and WALS
(IN) LLC (each individually, a “Borrower” and collectively, the “Borrowers”), the
Lenders party hereto, and Bank of America, N.A., as Administrative Agent.

     WHEREAS, the Company and the Borrowers have requested that the Lenders provide a secured
revolving credit facility for the purposes set forth herein; and

     WHEREAS, the Lenders have agreed to make the requested facility available on the terms and
conditions set forth herein.

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

ARTICLE I

DEFINITIONS

Section
1.1 Defined Terms. As used in this Agreement, the following terms have the meanings specified
below:

     “ABR,” when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to
the Alternate Base Rate.

     “Adjusted LIBO Rate” means for any Interest Period with respect to a Eurodollar
Borrowing, a rate per annum determined by the Administrative Agent pursuant to the following
formula:

	 	 	 	 	 	 	 

	 

	 	 	 	LIBO Rate
	 	 
	 

	 	 	 	 	 	 
	 

	 	Adjusted LIBO Rate =
	 	1.00 — Eurodollar Reserve	 	 
	 

	 	 	 	Percentage	 	 

Where,

     “LIBO Rate” means for such Interest Period, 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 (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 “LIBO 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 Eurodollar Borrowing 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.

and

     “Eurodollar 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
Board 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 Adjusted LIBO Rate for each outstanding Eurodollar Borrowing
shall be adjusted automatically as of the effective date of any change in the Eurodollar Reserve
Percentage.

     “Adjusted Management EBITDA” means, for any period, an amount equal to:

     (a) Management EBITDA during such period; minus

     (b) revenues earned by the Company and its Subsidiaries during such period in equity
(if any) of managed funds or CPA REITs; minus

     (c) structuring revenues earned by the Company and its Subsidiaries during such period
in excess of 35% of management revenues earned by the Company and its Subsidiaries (as
described in clause (a) of the definition of Management EBITDA) during such period; minus

     (d) distributions in cash received by the Company and its Subsidiaries in respect of
equity in managed funds and CPA REITs during such period.

     “Adjusted Property EBITDA” means, for any period, an amount equal to:

     (a) Property EBITDA during such period; minus

     (b) EBITDA during such period in respect of Properties owned by the Company or one of
its Subsidiaries for fewer than four fiscal quarters.

     “Adjusted Total EBITDA” means, for any period, an amount equal to:

     (a) EBITDA of the Company and its Subsidiaries during such period; plus

     (b) Joint Venture EBITDA for such period; minus

     (c) revenues earned by the Company and its Subsidiaries in equity (if any) of managed
funds and CPA REITS under management/advisory contracts; minus

2

 

     (d) structuring revenues earned by the Company and its Subsidiaries during such period
in excess of 35% of management revenues earned by the Company and its Subsidiaries (as
described in clause (a) of the definition of Management EBITDA) during such period; plus

     (e) distributions in cash received by the Company and its Subsidiaries in respect of
equity in managed funds and CPA REITS during such period.

     “Administrative Agent” means Bank of America, in its capacity as administrative agent
for the Lenders, or any successor administrative agent.

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

     “Affiliate” means, with respect to a specified Person, another Person that directly,
or indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

     “Aggregate Capped Value” means, as of any time, the sum of the Capped Values for each
Mortgaged Property.

     “Alternate Base Rate” means for any day a fluctuating rate per annum equal to the
highest of (a) the Federal Funds Rate plus 1/2 of 1%, (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,” and (c) the
Eurodollar Rate plus 1.00%. 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 such 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.
“Eurodollar Rate” means, on any date, the rate per annum equal to (i) the British Bankers
Association LIBOR Rate, as published by Reuters (or such other commercially available source
providing quotations thereof as may be designated by the Administrative Agent from time to time),
at approximately 11:00 a.m., London time determined two Business Days prior to such date for Dollar
deposits being delivered in the London interbank market for a term of one month commencing that day
or (ii) if such published rate is not available at such time for any reason, the rate per annum
determined by the Administrative Agent to be the rate at which deposits in Dollars for delivery on
the date of determination in same day funds in the approximate amount of the ABR Borrowing being
made or maintained and with a term equal to one month would be offered by Bank of America’s London
Branch to major banks in the London interbank Eurodollar market at their request at the date and
time of determination.

     “Annual Compliance Certificate” means an Officer’s Certificate signed by a Financial
Officer, substantially in the form of Exhibit 5.1(b).

     “Applicable Percentage” means, with respect to any Lender, the percentage of the total
Commitments represented by such Lender’s Commitment. If the Commitments have terminated

3

 

or expired, the Applicable Percentages shall be determined based upon the Commitments most
recently in effect, giving effect to any assignments.

     “Applicable Rate” means (a) 2.50% for Eurodollar Loans and (b) 3.50% for ABR Loans.

     “Assignment and Acceptance” means an assignment and acceptance entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section
9.4), and accepted by the Administrative Agent, in the form of Exhibit 9.4(a) or any other form
approved by the Administrative Agent.

     “Availability Period” means the period from and including the Closing Date to but
excluding the earlier of the Maturity Date and the date of termination of the Commitments.

     “Bank of America” means Bank of America, N.A. and its successors.

     “Board” means the Board of Governors of the Federal Reserve System of the United
States of America.

     “Borrowers” has the meaning set forth in the preamble.

     “Borrowing” means Revolving Loans of the same Type, made, converted or continued on
the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in
effect (a “Revolving Borrowing”).

     “Borrowing Request” means a request by the Company on behalf of a Borrower for a
Revolving Borrowing in accordance with Section 2.3, substantially in the form of Exhibit
2.3.

     “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed; provided
that, when used in connection with a Eurodollar Loan, the term “Business Day” shall also exclude
any day on which banks are not open for dealings in dollar deposits in the London interbank market.

     “Capital Lease” means any lease by a Person of (or other arrangement conveying the
right to use) real or personal property, or a combination thereof, the obligations under which are
required to be classified and accounted for as capital leases on a balance sheet of such Person
under GAAP.

     “Capital Lease Obligations” of any Person means the obligations of such Person to pay
rent or other amounts under any Capital Lease and the amount of such obligations shall be the
capitalized amount thereof determined in accordance with GAAP.

     “Capped Value” means at any time with respect to any Mortgaged Property, an amount
equal to (i) the product of (x) the Net Operating Income from such Mortgaged Property at such time,
multiplied by (y) four, divided by (ii) 8.50%.

     “Cash and Cash Equivalents” means unrestricted (i) cash, (ii) marketable direct
obligations issued or unconditionally guaranteed by the United States government (or any other

4

 

sovereign nation with an equivalent rating by S&P or Moody’s) and backed by the full faith and
credit of the United States government or such other nation; and (iii) domestic and Eurodollar
certificates of deposit and time deposits, bankers’ acceptances and floating rate certificates of
deposit issued by any commercial bank organized under the laws of the United States, any state
thereof, the District of Columbia, any foreign bank, or its branches or agencies (fully protected
against currency fluctuations), which, at the time of acquisition, are rated A-1 (or better) by S&P
or P-1 (or better) by Moody’s provided that the maturities of such Cash and Cash Equivalents shall
not exceed one year.

     “Change In Control” means (i) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934, as amended, and the rules of the Securities and Exchange Commission thereunder as in
effect on the date hereof) (other than the Company, any of its Subsidiaries, any trustee, fiduciary
or other person or entity holding securities under any employee benefit plan of the Company or any
of its Subsidiaries and other than any wholly owned direct or indirect subsidiary of the Company),
of shares representing more than 35% of the aggregate ordinary voting power represented by the
issued and outstanding capital stock of the Company; or (ii) occupation of a majority of the seats
(other than vacant seats) on the board of directors of the Company by Persons who were neither (A)
nominated by the board of directors of the Company nor (B) appointed by directors so nominated; or
(iii) the acquisition of direct or indirect Control of the Company by any Person or group (other
than any wholly owned direct or indirect Subsidiary).

     “Change In Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change
in any law, rule, regulation or treaty or in the administration, interpretation, implementation or
application thereof by any Governmental Authority or (c) the making or issuance of any request,
rule, guideline or directive (whether or not having the force of law) by any Governmental
Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall
Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives
thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives
promulgated by Bank of America for International settlements, the Basel Committee on Banking
Supervision (or any successor or similar authority) or the United States regulatory authorities, in
each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless
of the date enacted, adopted or issued.

     “Closing Date” means the date on which the conditions set forth in Section 4.1
are satisfied (or waived in accordance with Section 9.2).

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

     “Collateral” means all of the “Collateral” and “Mortgaged Property” or
“Trust Property” or other similar term referred to in any of the Collateral Documents and
all of the other property that is or is intended under the terms of any of the Collateral Documents
to be subject to a Lien in favor of the Administrative Agent for the benefit of the Secured
Parties.

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     “Collateral Documents” means, collectively, the Mortgages and each of the other
agreements, instruments or documents that creates or purports to create a Lien in favor of the
Administrative Agent for the benefit of the Secured Parties.

     “Combined Equity Value” means Total Value less Total Outstanding Indebtedness.

     “Commitment” means, with respect to each Lender, the commitment of such Lender to make
Revolving Loans, expressed as an amount representing the maximum aggregate amount of such Lender’s
Revolving Credit Exposure hereunder, as such commitment may be (a) reduced from time to time
pursuant to Section 2.9 and (b) reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section 9.4. The initial amount of each
Lender’s Commitment is set forth on Schedule 1.1(a), or in the Assignment and Acceptance pursuant
to which such Lender shall have assumed its Commitment, as applicable. The initial aggregate
amount of the Lenders’ Commitments is $30,000,000.

     “Company” has the meaning set forth in the preamble.

     “Compliance Certificate” means either the Annual Compliance Certificate, the Quarterly
Compliance Certificate or both.

     “Consolidated Businesses” means the Company and its Subsidiaries, on a consolidated
basis (without taking into account any non-wholly owned Person or entity).

     “Contingent Obligation” as to any Person means, without duplication, (i) any
contingent obligation of such Person required to be shown on such Person’s balance sheet in
accordance with GAAP, and (ii) any obligation required to be disclosed in the footnotes to such
Person’s financial statements in accordance with GAAP, guaranteeing partially or in whole any
non-recourse Indebtedness, lease, dividend or other obligation, exclusive of contractual
indemnities (including, without limitation, any indemnity or price-adjustment provision relating to
the purchase or sale of securities or other assets) and guarantees of non-monetary obligations
(other than guarantees of completion) which have not yet been called on or quantified, of such
Person or of any other Person. The amount of any Contingent Obligation described in clause (ii)
shall be deemed to be (a) with respect to a guaranty of interest or interest and principal, or
operating income guaranty, the sum of all payments required to be made thereunder (which in the
case of an operating income guaranty shall be deemed to be equal to the debt service for the note
secured thereby), calculated at the interest rate applicable to such Indebtedness, through (i) in
the case of an interest or interest and principal guaranty, the stated dated maturity of the
obligation (and commencing on the date interest could first be payable thereunder), or (ii) in the
case of an operating income guaranty, the date through which such guaranty will remain in effect,
and (b) with respect to all guarantees not covered by the preceding clause (a) an amount equal to
the stated or determinable amount of the primary obligation in respect of which such guaranty is
made or, if not stated or determinable, the maximum reasonable anticipated liability in respect
thereof (assuming such Person is required to perform thereunder) as recorded on the balance sheet
and on the footnotes to the most recent financial statements of the Company required to be
delivered pursuant hereto. Notwithstanding anything contained herein to the contrary, guarantees
of completion and of Nonrecourse Carveouts shall not be deemed to be Contingent Obligations unless
and until a claim for payment has been made thereunder, at which

6

 

time any such guaranty of completion or of Nonrecourse Carveouts shall be deemed to be a
Contingent Obligation in an amount equal to any such claim. Subject to the preceding sentence, (i)
in the case of a joint and several guaranty given by such Person and another Person (but only to
the extent such guaranty is recourse, directly or indirectly to the applicable Person), the amount
of the guaranty shall be deemed to be 100% thereof unless and only to the extent that (X) such
other Person has delivered Cash or Cash Equivalents to secure all or any part of such Person’s
guaranteed obligations or (Y) such other Person holds an Investment Grade Credit Rating from either
Moody’s or S&P, and (ii) in the case of a guaranty (whether or not joint and several) of an
obligation otherwise constituting Indebtedness of such Person, the amount of such guaranty shall be
deemed to be only that amount in excess of the amount of the obligation constituting Indebtedness
of such Person. Notwithstanding anything contained herein to the contrary, “Contingent Obligations”
shall not be deemed to include guarantees of loan commitments or of construction loans to the
extent the same have not been drawn.

     “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “controlled” have meanings
correlative thereto.

     “CPA®:14” means Corporate Property Associates 14 Incorporated, a Maryland corporation.

     “CPA Global REIT” means Corporate Property Associates 16 — Global Incorporated, a
Maryland corporation.

     “CPA REIT” means a REIT managed or advised by the Company or a Subsidiary and listed
on Schedule 1.1(b) (as updated from time to time by the Company).

     “Credit Event” has the meaning set forth in Section 4.2.

     “Debt Rating” means, as of any date of determination, the rating as determined by
either S&P or Moody’s (collectively, the “Debt Ratings”) of the Company’s senior unsecured
non-credit enhanced long-term Indebtedness for borrowed money.

     “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,
rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the
United States or other applicable jurisdictions from time to time in effect and affecting the
rights of creditors generally.

     “Default” means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

     “Disclosed Matters” means the actions, suits and proceedings and the environmental
matters disclosed in Schedule 3.6.

     “Dollars” or “$” refers to lawful money of the United States of America.

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     “Domestic Subsidiary” means any Subsidiary that is organized under the laws of any
state of the United States or the District of Columbia.

     “EBITDA” means, for any Person for any period, the Net Income (Loss) of such Person
for such period taken as a single accounting period, plus (a) the sum of the following amounts of
such Person and its subsidiaries for such period determined on a consolidated basis in conformity
with GAAP to the extent included in the determination of such Net Income (Loss): (i) depreciation
expense, (ii) amortization expense and other non-cash charges, (iii) interest expense, (iv) income
tax expense, (v) extraordinary losses and other non-recurring charges (and other losses on asset
sales not otherwise included in extraordinary losses and other non-recurring charges), and (vi)
adjustments as a result of the straight lining of rents, less (b) extraordinary gains (and in the
case of the Company and its consolidated subsidiaries, other gains on asset sales not otherwise
included in extraordinary gains) of such Person and its subsidiaries determined on a consolidated
basis in conformity with GAAP to the extent included in the determination of such Net Income
(Loss).

     “Eligible Ground Lease” means a ground lease that (a) has a minimum remaining term of
thirty (30) years, including tenant controlled options, as of any date of determination, (b) has
customary notice rights, default cure rights, bankruptcy new lease rights and other customary
provisions for the benefit of a leasehold mortgagee or has equivalent protection for a leasehold
permanent mortgagee by a subordination to such leasehold permanent mortgagee of the landlord’s fee
interest, and (c) is otherwise acceptable for non-recourse leasehold mortgage financing under
customary prudent lending requirements. The Eligible Ground Leases as of the date of this
Agreement are listed on Schedule 1.1(c).

     “Eligible Project” means a Project (i) which is free of all title defects and material
structural defects, as verified by an Officer’s Certificate in form and substance satisfactory to
the Administrative Agent, and (ii) which is free of Hazardous Materials except as would not
materially affect the value of such Project, as verified by an Officer’s Certificate in form and
substance satisfactory to the Administrative Agent.

     “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into
by any Governmental Authority, relating in any way to the environment, preservation or reclamation
of natural resources, the management, release or threatened release of any Hazardous Material.

     “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the
Company or any Subsidiary directly or indirectly resulting from or based upon (a) violation of any
Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any contract, agreement
or other consensual arrangement pursuant to which liability is assumed or imposed with respect to
any of the foregoing.

8

 

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

     “ERISA Affiliate” means any trade or business (whether or not incorporated) that,
together with the Company, is treated as a single employer under Section 414(b) or (c) of
the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the
Code, is treated as a single employer under Section 414 of the Code.

     “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of
ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which
the 30 day notice period is waived); (b) the existence with respect to any Plan of an “accumulated
funding deficiency” (as defined in Section 412 of the Code or Section 302 of
ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or
Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with
respect to any Plan; (d) the incurrence by the Company or any of its ERISA Affiliates of any
liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by
the Company or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to
an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the
incurrence by the Company or any of its ERISA Affiliates of any liability with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the
Company or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the
Company or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or
a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

     “Eurodollar” when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate.

     “Event of Default” has the meaning set forth in Section 7.1.

     “Excluded Taxes” means, with respect to the Administrative Agent, any Lender or any
other recipient of any payment to be made by or on account of any obligation of any Loan Party
hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by the United
States of America, or by the jurisdiction under the laws of which such recipient is organized or in
which its principal office is located or, in the case of any Lender, in which its applicable
lending office is located, (b) any branch profits taxes imposed by the United States of America or
any similar tax imposed by any other jurisdiction in which such Loan Party is located and (c) in
the case of a Foreign Lender (other than an assignee pursuant to a request by such Loan Party under
Section 2.19(b)), any withholding tax that is imposed on amounts payable to such Foreign
Lender at the time such Foreign Lender becomes a party to this Agreement (or designates a new
lending office) or is attributable to such Foreign Lender’s failure to comply with Section
2.17(e), except to the extent that such Foreign Lender (or its assignor, if any) was entitled,
at the time of designation of a new lending office (or assignment), to receive additional amounts
from such Loan Party with respect to such withholding tax pursuant to Section 2.17(a).

9

 

     “Fair Market Value” means, with respect to any asset or property, the sale value that
would be obtained in an arm’s-length transaction between an informed and willing seller under no
compulsion to sell and an informed and willing buyer under no compulsion to buy. Fair Market Value
shall be determined by an officer of the Company acting in good faith and shall be evidenced by an
Officer’s Certificate, except in the case of the determination of Fair Market Value of Permitted
REIT Investments which are “restricted securities” as defined in the definition of REIT Investment
Value having a Fair Market Value in excess of $5,000,000, in which case the determination of such
Fair Market Value shall be, at the election of the Company, by (i) the board of directors of the
Company acting in good faith and shall be evidenced by a resolution of the board of directors, or
(ii) an appraisal of an independent third-party appraiser which shall be a Person regularly engaged
in the valuation of securities of the same type as such Permitted REIT Investment. The Fair Market
Value of any readily marketable securities shall be the number of such securities multiplied by the
average Market Price per share or per unit of such securities during the five consecutive trading
days immediately preceding the date of determination. The “Market Price” of any security on any
trading day shall mean, with respect to any security which is listed on a national securities
exchange, the last sale price regular way, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices regular way, in either case on the New York Stock
Exchange, or, if such security is not listed or admitted to trading on such exchange, on the
principal national securities exchange on which such security is listed or admitted to trading, or,
if such security is not listed or admitted to trading on any national securities exchange but is
designated as a national market system security by the National Association of Securities Dealers,
the last sale price, or, in case no such sale takes place on such day, the average of the closing
bid and asked prices, in either case as reported on the National Association of Securities Dealers
Automated Quotation/National Market System, or if such security is not so designated as a national
market systems security, the average of the highest reported bid and lowest reported asked prices
as furnished by the National Association of Securities Dealers or similar organization if the
National Association of Securities Dealers is no longer reporting such information. With respect
to operating partnership units of any REIT, such operating partnership units shall in no event have
a value greater than the value of the number of shares of the REIT into which such operating
partnership units are then convertible.

     “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.

     “Financial Officer” means the chief financial officer, principal accounting officer,
treasurer or controller of the Company.

10

 

     “Financial Statements” means financial statements presenting the consolidated
financial position of the Company and its Subsidiaries as at the date indicated and the results of
their operations and cash flow for the period indicated in accordance with GAAP, subject to normal
adjustments.

     “Fixed Charges” means, with respect to any period, the sum of (a) Total Interest
Expense for such period plus (b) the aggregate of all scheduled principal payments on Total
Outstanding Indebtedness according to GAAP made or required to be made during such period by the
Company and its Subsidiaries (with appropriate adjustments for minority interests) or allocable to
the Company and its Subsidiaries on account of Joint Venture Holdings (but excluding balloon
payments of principal due upon the stated maturity of any Indebtedness) plus (c) the aggregate of
all dividends payable on the Company’s or any of its consolidated Subsidiaries’ preferred equity
interests (if any).

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

     “GAAP” means generally accepted accounting principles in the United States of America.

     “Governmental Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

     “Guarantee” of or by any Person means any obligation, contingent or otherwise, of such
Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other
obligation of any other Person (the “Primary Obligor”) in any manner, whether directly or
indirectly, and including any obligation of such Person, direct or indirect, (a) to purchase or pay
(or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation
or to purchase (or to advance or supply funds for the purchase of) any security for the payment
thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the
owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working
capital, equity capital or any other financial statement condition or liquidity of the Primary
Obligor so as to enable the Primary Obligor to pay such Indebtedness or other obligation or (d) as
an account party or applicant in respect of any letter of credit or letter of guaranty issued to
support such Indebtedness or obligation; provided, that the term Guarantee shall not include
endorsements for collection or deposit in the ordinary course of business.

     “Guarantor” means the Company in its capacity as guarantor hereunder.

     “Guaranty” means the Guaranty made by the Company under Article X in favor of
the Secured Parties.

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     “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.

     “Hedging Agreement” means any interest rate protection agreement, foreign currency
exchange agreement, commodity price protection agreement or other interest or currency exchange
rate or commodity price hedging arrangement.

     “Improvements” means all buildings, fixtures, structures, parking areas, landscaping
and other improvements whether existing now or hereafter constructed, together with all machinery
and mechanical, electrical, HVAC and plumbing systems presently located thereon and used in the
operation thereof, excluding (a) any such items owned by utility service providers, (b) any such
items owned by tenants or other third parties unaffiliated with the Company and (c) any items of
personal property.

     “Indebtedness” of any Person means, without duplication, (a) all obligations of such
Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations
of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of
such Person upon which interest charges are customarily paid (excluding current Taxes, water and
sewer charges and assessments and current trade liabilities incurred in the ordinary course of
business in accordance with customary terms), (d) all obligations of such Person under conditional
sale or other title retention agreements relating to property acquired by such Person (other than
current trade liabilities incurred in the ordinary course of business in accordance with customary
terms), (e) all obligations of such Person in respect of the deferred purchase price of property or
services (excluding current accounts payable incurred in the ordinary course of business), (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such
Person, whether or not the Indebtedness secured thereby has been assumed, (g) all Guarantees by
such Person of Indebtedness of others and other Contingent Obligations, (h) all Capital Lease
Obligations of such Person, (i) all obligations, contingent or otherwise, of such Person as an
account party or applicant in respect of letters of credit and letters of guaranty, (j) all
obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances, (k) all
obligations of such Person to purchase or redeem any shares of equity securities issued by such
Person, including obligations under so-called forward equity purchase contracts to the extent such
obligations are not payable solely in equity interests, (l) all obligations of such Person in
respect of any forward contract, futures contract, swap or other agreement, the value of which is
dependent upon interest rates or currency exchange rates, and (m) all obligations of such Person in
respect of any so-called “synthetic lease” (i.e., a lease of property which is treated as an
operating lease under GAAP and as a loan for U.S. income tax purposes). The Indebtedness of any
Person shall include the Indebtedness of any other entity (including any partnership in which such
Person is a general partner) to the extent such Person is liable therefor as a result of such
Person’s ownership interest in or other relationship with such entity, except to the extent the
terms of such Indebtedness provide that such Person is not liable therefor.

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     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Interest Election Request” means a request by the Company to convert or continue a
Revolving Borrowing in accordance with Section 2.8.

     “Interest Payment Date” means (a) with respect to any ABR Loan, the last Business Day
of each March, June, September and December and (b) with respect to any Eurodollar Loan, the last
day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the
case of a Eurodollar Borrowing with an Interest Period of more than three months’ duration, each
day prior to the last Business Day of such Interest Period that occurs at intervals of three
months’ duration after the first day of such Interest Period.

     “Interest Period” means with respect to any Eurodollar Borrowing the period commencing
on the date of such Borrowing and ending on the numerically corresponding day in the calendar month
that is one, two, three or six months thereafter, as the Company on behalf of a Borrower may elect;
provided, that (i) if any Interest Period would end on a day other than a Business Day, such
Interest Period shall be extended to the next succeeding Business Day unless such next succeeding
Business Day would fall in the next calendar month, in which case such Interest Period shall end on
the next preceding Business Day and (ii) any Interest Period that commences on the last Business
Day of a calendar month (or on a day for which there is no numerically corresponding day in the
last calendar month of such Interest Period) shall end on the last Business Day of the last
calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially
shall be the date on which such Borrowing is made and thereafter shall be the effective date of the
most recent conversion or continuation of such Borrowing.

     “Investment Grade Credit Rating” means a Debt Rating of BBB- or higher by S&P or Baa3
or higher by Moody’s.

     “Joint Venture” means a partnership, limited liability company, joint venture
(including a tenancy-in-common ownership pursuant to a written agreement providing for
substantially the same rights and obligations relating to such property that would be in a joint
venture agreement), or corporation which is not wholly-owned by the Company (or one of its
Subsidiaries).

     “Joint Venture EBITDA” means, for any period, EBITDA from a Joint Venture Holding,
calculated as revenue allocated to the Company and its Subsidiaries based on its ownership interest
in such Joint Venture Holding, minus 2% of such revenue.

     “Joint Venture Holding” means an interest in a Joint Venture held or owned by the
Company (or one of its Subsidiaries).

     “Lease” means a lease, license, concession agreement or other agreement providing for
the use or occupancy of any portion of any Project, including all amendments, supplements,
modifications and assignments thereof and all side letters or side agreements relating thereto.

     “Lender Affiliate” means, (a) with respect to any Lender, (i) an Affiliate of such
Lender or (ii) any entity (whether a corporation, partnership, trust or otherwise) that is engaged
in making, purchasing, holding or otherwise investing in bank loans and similar extensions of
credit in the ordinary course of its business and is administered or managed by such Lender or an

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Affiliate of such Lender and (b) with respect to any Lender that is a fund which invests in
bank loans and similar extensions of credit, any other fund that invests in bank loans and similar
extensions of credit and is managed by the same investment advisor as such Lender or by an
Affiliate of such investment advisor.

     “Lenders” means the Persons listed on Schedule 1.1(a) and any other Person that shall
have become a party hereto pursuant to an Assignment and Acceptance, other than any such Person
that ceases to be a party hereto pursuant to an Assignment and Acceptance.

     “LIBO Rate” has the meaning specified in the definition of Adjusted LIBO Rate.

     “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset (excluding,
in the case of assets consisting of Real Property owned by the Company, its Subsidiaries or a Joint
Venture, the lien of a mortgage or deed of trust on the Real Property interest not owned by the
Company, its Subsidiaries or the Joint Venture; provided that the ownership or estate interest of
the Company or a Subsidiary in such Real Property is not subordinate to such a lien and such
interest would not be adversely affected by such lien either through foreclosure thereof or
otherwise (e.g., a mortgage on the leasehold interest of a Project owned in fee by a Subsidiary
does not constitute a Lien)), (b) the interest of a vendor or a lessor under any conditional sale
agreement, capital lease or title retention agreement (or any financing lease having substantially
the same economic effect as any of the foregoing) relating to such asset and (c) in the case of
securities, any purchase option, call or similar right of a third party with respect to such
securities.

     “LLC Agreement Event” means any of the following: (a) the occurrence of the “Maturity
Date” under (and as defined in) the LLC Credit Agreement, (b) the LLC Credit Agreement or the
“Commitments” thereunder (and as defined therein) are terminated in their entirety for any reason,
(c) the occurrence of an event or condition described in clause (g) of Section 7.1 with
respect to the Indebtedness under the LLC Credit Agreement, (d) the Indebtedness under the LLC
Credit Agreement is refinanced or (e) the LLC Credit Agreement is amended and restated or amended,
supplemented or modified in any material respect without the written consent of the Required
Lenders.

     “LLC Credit Agreement” means the Credit Agreement, dated as of June 29, 2007, among
certain Subsidiaries of the Company, as borrowers, the Company, as guarantor, the lenders party
thereto and Bank of America, as administrative agent, as in effect on the Closing Date or as
amended, amended and restated, supplemented or modified with the written consent of the Required
Lenders.

     “Loans” means the Revolving Loans.

     “Loan Documents” means this Agreement, the Collateral Documents, the Notes and all
other instruments, agreements and written obligations between a Loan Party and any of the Lenders
or the Administrative Agent pursuant to or in connection with any of the Transactions.

     “Loan Parties” means the Borrowers and the Guarantor.

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     “Management Contract” means a management contract or advisory agreement under which
the Company or one of its Subsidiaries provides management and advisory services to a third party,
consisting of management of properties or provision of advisory services on property acquisition
and dispositions, equity and debt placements and related transactional matters.

     “Management EBITDA” means, for any period, an amount equal to:

     (a) the aggregate sum of revenues for such period earned by the Company and its
Subsidiaries from providing management services under Management Contracts, including asset
management revenue, performance revenue, structuring revenue, advisor’s participation in
cash flow (if any), interest income or any revenue earned as stipulated in a Management
Contract and booked for financial reporting purposes, together with appropriate adjustments
for minority interests and excluding revenue related to reimbursed costs but including
distributions received for such period related to the ownership of shares in managed funds
and CPA REITs; minus

     (b) Management G&A expense for such period.

     “Management G&A Expense” means, for any period, (a) Total G&A Expense during such
period (net of reimbursed costs) minus (b) Property G&A Expense for such period.

     “Marketable Securities” means short-term marketable securities, issued by any entity
(other than the Company or an Affiliate of the Company) organized and existing under the laws of
the United States of America, with a long-term unsecured indebtedness rating, at the time when any
investment therein is made, with Moody’s or S&P of Baa2/BBB or better, respectively.

     “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
financial condition or results of operations of the Company and the Subsidiaries taken as a whole,
(b) the validity or enforceability of the Loan Documents or the rights or remedies of the
Administrative Agent and the Lenders under the Loan Documents or (c) the validity, enforceability,
perfection or priority of the Administrative Agent’s Liens in the Collateral.

     “Material Indebtedness” means Indebtedness (other than the Loans and Nonrecourse
Indebtedness), or obligations in respect of one or more Hedging Agreements, of any one or more of
the Company and its Subsidiaries in an aggregate principal amount exceeding $25,000,000, including,
in any event, Indebtedness under the LLC Credit Agreement. For purposes of determining Material
Indebtedness, the “principal amount” of the obligations of the Company or any Subsidiary in respect
of any Hedging Agreement at any time shall be the maximum aggregate amount (giving effect to any
netting agreements) that the Company or such Subsidiary would be required to pay if such Hedging
Agreement were terminated at such time.

     “Material Subsidiary” means at any time (a) any borrower under the LLC Credit
Agreement or (b) any other Subsidiary which contributes at least $20,000,000 to Total Value.

     “Maturity Date” means the earlier of (i) June 29, 2012 and (ii) the occurrence of an
LLC Agreement Event.

15

 

     “Merger” means the merger of CPA®:14 with and into CPA 16 Merger Sub Inc., a Maryland
corporation, with CPA 16 Merger Sub Inc. as the surviving corporation.

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

     “Mortgage” has the meaning set forth in Section 4.1(a)(iii).

     “Mortgage Policies” has the meaning set forth in Section 4.13(a)(iii)(B).

     “Mortgaged Properties” means the Real Properties listed on Schedule 1.1(d).

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

     “Net Asset Value” means the value of a security determined on a net asset value basis
by an officer of the Company in good faith and evidenced by an Officer’s Certificate, which
determination shall be based on an appraisal of an independent third-party appraiser regularly
engaged in the valuation of securities of the same type as the securities being valued.

     “Net Income (Loss)” means, for any Person for any period, the aggregate of net income
(or loss) of such Person and its subsidiaries for such period, determined on a consolidated basis
in conformity with GAAP.

     “Net Offering Proceeds” means all cash or other assets received by the Company as a
result of the sale of common shares, preferred shares, partnership interests, limited liability
company interests, convertible securities or other ownership or equity interests in the Company,
less customary costs and discounts of issuance paid by the Company.

     “Net Operating Income” means, with respect to any Mortgaged Property at any time, an
amount equal to (a) the aggregate gross revenues from the operation of such Mortgaged Property from
tenants in occupancy and paying rent during the then most recently ended fiscal quarter of the
Company for which Financial Statements have been provided to the Administrative Agent and the
Lenders, minus (b) the sum of (i) all expenses and other proper charges incurred by the Company and
its consolidated Subsidiaries during such fiscal quarter in connection with the operation of such
Mortgaged Property (including accruals for real estate taxes and insurance, but excluding debt
service charges, income taxes, depreciation, amortization and other non-cash expenses), which
expenses and accruals shall be calculated in accordance with GAAP and (ii) a management, advisory
or similar fee in an amount equal to the greater of (x) three percent (3.00%) of the rent payable
in respect of such Mortgaged Property during such fiscal quarter and (y) actual management,
advisory or similar fees paid in cash during such fiscal quarter.

     “Nonrecourse Carveouts” means the personal liability of an obligor under Indebtedness
for fraud, misrepresentation, misapplication or misappropriation of cash, waste, environmental
liability, bankruptcy filing or any other circumstances customarily excluded from non-recourse
provisions and non-recourse financing of real estate.

     “Nonrecourse Indebtedness” of any Person means all Indebtedness of such Person with
respect to which recourse for payment is limited to specific assets encumbered by a Lien

16

 

securing such Indebtedness (other than Nonrecourse Carveouts); provided, that if in connection
therewith a personal recourse claim is established by judgment decree or award by any court of
competent jurisdiction or arbitrator of competent jurisdiction and execution or enforcement thereof
shall not be effectively stayed for 30 consecutive days and such Indebtedness shall not be paid or
otherwise satisfied within such 30-day period, then such Indebtedness in an amount equal to the
personal recourse claim established by judgment or award shall not constitute Nonrecourse
Indebtedness for purposes of this Agreement.

     “Note” means a promissory note in the form attached hereto as Exhibit 2.10(f) payable
to a Lender, evidencing certain of the Obligations of the Borrowers to such Lender and executed by
the Borrowers as set forth in Section 2.10(f), as the same may be amended, supplemented,
modified or restated from time to time. “Notes” means, collectively, all of such Notes outstanding
at any given time.

     “Obligations” means, collectively, the obligations of the Loan Parties in respect of
principal, interest, fees, indemnities, and all other amounts under or in connection with this
Agreement or any of the other Loan Documents, in each case whether such obligation arose before or
after the commencement of any bankruptcy, insolvency, receivership or other similar proceeding and
whether or not the obligation is undersecured or oversecured or deemed allowable, provable or
accruing against any Loan Party in any such proceeding, including interest calculated from the
commencement of any such proceeding at the rate provided in Section 2.13(c).

     “Officer’s Certificate” means a certificate signed by the President or any Vice
President of the Company or by any Financial Officer or by such other officer as may be specified
herein, and delivered to the Administrative Agent hereunder.

     “Other Taxes” means any and all present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies arising from any payment made hereunder
or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement.

     “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
and any successor entity performing similar functions.

     “Permitted Encumbrances” means:

     (a) Liens imposed by law for taxes, assessments, governmental charges or levies that
are not yet due or are being contested in compliance with Section 5.4 and for which
a stay of enforcement is in effect;

     (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like
Liens imposed by law, arising in the ordinary course of business and securing obligations
that are not overdue by more than 30 days or are being contested in compliance with
Section 5.4;

     (c) pledges and deposits made in the ordinary course of business in compliance with
workers’ compensation, unemployment insurance and other social

17

 

security laws or regulations or to secure the performance of bids, purchases, contracts
(other than for the payment of borrowed money) and surety, appeal and performance bonds;

     (d) deposits to secure the performance of bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like
nature, in each case in the ordinary course of business;

     (e) easements, zoning restrictions, rights-of-way and similar encumbrances on real
property imposed by law or arising in the ordinary course of business that do not secure any
monetary obligations and do not materially detract from the value of the affected property
or interfere with the ordinary conduct of business of the Company or any Subsidiary;

     (f) statutory and common law landlord Liens; and

     (g) such Liens as identified on Schedule B to the Mortgage Policy applicable to such
Mortgaged Property;

provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness.

     “Permitted REIT Investments” means investments by the Company or any Subsidiary in
publicly traded warrants, publicly traded equity securities and operating partnership units of
publicly traded REITS (and excluding in any event investments in the securities of the CPA REITS).
For purposes hereof, “publicly traded” shall mean that such investments are traded on a
nationally-recognized market with widely distributed standard price quotations.

     “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

     “Plan” means any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section
302 of ERISA, and in respect of which the Company or any ERISA Affiliate is (or, if such plan
were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as
defined in Section 3(5) of ERISA.

     “Project” means any office, industrial/manufacturing facility, educational facility,
retail facility, distribution/warehouse facility, assembly or production facility, hotel, day care
center, storage facility, health care/hospital facility, restaurant, radio or TV station,
broadcasting/communication facility (including any transmission facility), any combination of any
of the foregoing, or any land to be developed into any one or more of the foregoing pursuant to a
written agreement with respect to such land for a transaction involving a Lease, in each case
owned, directly or indirectly, by any of the Consolidated Businesses.

     “Property” means any Real Property or personal property, plant, building, facility,
structure, equipment, general intangible, receivable, or other asset owned or leased by any

18

 

Consolidated Business or any Joint Venture in which the Company, directly or indirectly, has a
Joint Venture Holding.

     “Property EBITDA” means, for any period, an amount equal to:

     (a) Adjusted Total EBITDA for such period; minus

     (b) Adjusted Management EBITDA for such period; minus

     (c) distributions in cash received by the Company and its Subsidiaries in respect of
equity in managed funds and CPA REITS for such period.

     “Property G&A Expense” means, for any period, 8% of the total lease revenues of the
Company and its Subsidiaries for such period, as set forth on the Company’s consolidated financial
statements for such period.

     “Quarterly Compliance Certificate” means an Officer’s Certificate signed by a
Financial Officer, substantially in the form of Exhibit 5.1(a).

     “Real Property” means any present and future right, title and interest (including,
without limitation, any leasehold estate) in (i) any plots, pieces or parcels of land, (ii) any
Improvements of every nature whatsoever (the rights and interests described in clauses (i) and (ii)
above being the “Premises”), (iii) all easements, rights of way, gores of land or any lands
occupied by streets, ways, alleys, passages, sewer rights, water courses, water rights and powers,
and public places adjoining such land, and any other interests in property constituting
appurtenances to any Premises, or which hereafter shall in any way belong, relate or be appurtenant
thereto, (iv) all hereditaments, gas, oil, minerals (with the right to extract, sever and remove
such gas, oil and minerals), and easements, of every nature whatsoever, located in, on or
benefiting any Premises and (v) all other rights and privileges thereunto belonging or appertaining
and all extensions, additions, improvements, betterments, renewals, substitutions and replacements
to or of any of the rights and interests described in clauses (iii) and (iv) above.

     “Register” has the meaning set forth in Section 9.4.

     “REIT” means a domestic trust or corporation that qualifies as a real estate
investment trust under the provisions of Sections 856, et seq. of the Code.

     “REIT Investment Value” means, as of any date, the sum of (i) 80% of the Fair Market
Value as of the date of determination of Permitted REIT Investments consisting of warrants, REIT
shares and operating partnership units that are unrestricted securities, plus (ii) 65% of the Fair
Market Value as of the date of determination of Permitted REIT Investments consisting of warrants,
REIT shares and operating partnership units that are restricted securities; provided that the Fair
Market Value of Permitted REIT Investments in excess of 15% of the outstanding equity securities of
any REIT and its related operating partnership shall be excluded in determining REIT Investment
Value. For purposes of this definition and the definition of Fair Market Value, the term
“restricted securities” shall mean securities which constitute “restricted securities” or are held
by an “affiliate” of the issuer of such securities, in each case in accordance with Rule 144
promulgated under the Securities Act of 1933, as amended, or are otherwise subject to

19

 

any agreement, arrangement or other understanding in any way limiting or affecting the right of
the holder of such securities to dispose of such securities. For purposes of this definition, the
term “unrestricted securities” shall mean securities which are not “restricted securities.”

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

     “Required Lenders” means, at any time, Lenders having Revolving Credit Exposures and
Unused Commitments representing at least 51% of the sum of the total Revolving Credit Exposures and
Unused Commitments at such time; provided that, in the event any of the Lenders shall have failed
to fund its Applicable Percentage of any Borrowing which such Lender is obligated to fund under the
terms of this Agreement and any such failure has not been cured as provided in Section 2.7,
then for so long as such failure continues, “Required Lenders” means Lenders (excluding all Lenders
whose failure to fund their respective Applicable Percentages of such Borrowings have not been so
cured) having Revolving Credit Exposures and Unused Commitments representing at least 51% of the
sum of the total Revolving Credit Exposures and Unused Commitments of such Lenders at such time.

     “Restricted Payment” is defined in Section 6.1(e).

     “Revolving Borrowing” has the meaning specified in the definition of Borrowing.

     “Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of
the outstanding principal amount of such Lender’s Revolving Loans.

     “Revolving Loan” means a loan made pursuant to Sections 2.2 and 2.3.

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

     “Secured Indebtedness” means any Indebtedness secured by a Lien.

     “Secured Parties” means, collectively, the Administrative Agent, the Lenders, each
sub-agent appointed by the Administrative Agent from time to time pursuant to Section 8.5,
and the other Persons the Obligations owing to which are or are purported to be secured by any of
the Collateral under the terms of any of the Collateral Documents.

     “Solvent”, when used with respect to any Person, means that at the time of
determination:

     (a) the fair saleable value of its assets is in excess of the total amount of its
liabilities (including, without limitation, contingent liabilities); and

     (b) the present fair saleable value of its assets is greater than its probable
liability on its existing debts as such debts become absolute and matured; and

     (c) it is then able and expects to be able to pay its debts (including, without
limitation, contingent debts and other commitments) as they mature; and

20

 

     (d) it has capital sufficient to carry on its business as conducted and as proposed to
be conducted.

     “Subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of
which would be consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership, association or other entity
(a) of which securities or other ownership interests representing more than 50% of the equity or
more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as
of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by
the parent and one or more subsidiaries of the parent. Unless otherwise specified, any reference
to “Subsidiary” or “Subsidiaries” hereunder shall refer to a Subsidiary or Subsidiaries of the
Company.

     “Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.

     “Total G&A Expense” means, for any period, the total general and administrative
expenses of the Company and its Subsidiaries for such period, as determined in accordance with
GAAP.

     “Total Interest Expense” means, for any period, an amount equal to (a) interest
expense (including capitalized interest expense) of the Company and its Subsidiaries during such
period, plus (b) the portion of the interest expense of Joint Ventures allocable to the Company and
its Subsidiaries in accordance with GAAP on account of ownership of Joint Venture Holdings during
such period (with appropriate adjustments for minority interests) minus (c) extraordinary interest
expense related to debt prepayments or defeasance of loans minus (d) amortization of deferred costs
associated with new financings or refinancings of existing Indebtedness minus (e) capitalized
interest expense related to Real Property under construction.

     “Total Outstanding Indebtedness” means, as of any date, the sum, without duplication,
of (a) the amount of Indebtedness (secured and unsecured and recourse or non-recourse) of the
Company and its Subsidiaries, including, without limitation, mortgage loans, outstanding balances
on lines of credit and notes payable, as set forth in the then most recent quarterly Financial
Statements delivered pursuant to Section 5.1, prepared in accordance with GAAP plus (b) the
outstanding amount of Indebtedness of Joint Ventures allocable in accordance with GAAP on account
of ownership of Joint Venture Holdings to the Company and its Subsidiaries as of the time of
determination (with appropriate adjustments for minority interests) plus (c) the Contingent
Obligations of the Company and its Subsidiaries and, to the extent allocable to the Company and its
Subsidiaries in accordance with GAAP on account of ownership of Joint Venture Holdings, of the
Joint Ventures (with appropriate adjustments for minority interests).

     “Total Secured Outstanding Indebtedness” means, as of any date, the portion of Total
Outstanding Indebtedness that is Secured Indebtedness.

21

 

“Total Value” means, as of any date, the sum, without duplication, of:

     (a) unrestricted Cash and Cash Equivalents which would be included on the Consolidated
Businesses’ consolidated balance sheet as of such date; plus

     (b) Fair Market Value of Marketable Securities; plus

     (c) in respect of Projects owned or ground-leased by the Company and its Subsidiaries
for at least four (4) fiscal quarters, the Adjusted Property EBITDA for such Projects as of
the first day of the fiscal quarter in which such date occurs for the previous four
consecutive fiscal quarters divided by 8.25%; plus

     (d) the investment (at cost without depreciation) in Projects owned or ground-leased by
the Company and its Subsidiaries for fewer than four fiscal quarters (with appropriate
adjustments for minority interests); plus

     (e) the investment (at cost without depreciation) in Joint Venture Holdings for fewer
than four fiscal quarters which is allocable to the Company and its Subsidiaries based on
their ownership interests in the related Joint Ventures in accordance with GAAP (with
appropriate adjustments for minority interests); plus

     (f) the investment in Joint Ventures, to the extent controlled by the Company or its
Affiliates, valued according to the methodologies under clauses (c) or (d) above which is
allocable to the Company and its Subsidiaries based on their ownership interests in the
related Joint Ventures in accordance with GAAP; provided that the amount under this clause
(f) shall be limited to 30% of Total Value; plus

     (g) investments in notes secured by mortgages on the Real Property of any Person at
cost, less an amount equal to accrued amortization payments in respect thereof; provided
that the amount under this clause (g) shall be limited to 15% of Total Value; plus

     (h) the REIT Investment Value; provided that the amount under this clause (h) shall be
limited to 10% of Total Value; plus

     (i) the product of seven (7) multiplied by the lesser of (i) the Adjusted Management
EBITDA for the previous four fiscal quarters or (ii) the product of two (2) multiplied by
the Adjusted Management EBITDA for the previous two fiscal quarters; provided that the
amount under this clause (i) shall be limited to 50% of Total Value; plus

     (j) the book value of all loans made by the Company and its Subsidiaries to CPA REITs;
provided that the amount under this clause (j) shall be limited to 10% of Total Value;

     (k) the Net Asset Value of all investments in the securities of the CPA REITs reported
under the treatment of equity investments as of the end of the most recent fiscal quarter
for which financial statements have been delivered pursuant to Section 5.1;

22

 

provided that the amount under this clause (k) shall be limited to 10% of Total Value;
plus

     (l) investments in Real Property under construction which is proceeding to completion
in the ordinary course (valued at the aggregate costs incurred and paid to date); provided
that the amount under this clause (l) shall be limited to 15% of Total Value; plus

     (m) investments (at the lower of cost or market value) in Real Property consisting of
undeveloped land; provided that the amount under this clause (m) shall be limited to 5% of
Total Value.

Notwithstanding the foregoing and solely for the purposes of this definition:

     (A) the aggregate amount of investments by the Company and its consolidated
Subsidiaries in assets based outside the United States shall not exceed 25% of Total Value;

     (B) the sum of the aggregate investments by the Company and its consolidated
Subsidiaries pursuant to clauses (g), (h), (i), (j) and (k) above shall not exceed 50% of
Total Value; and

     (C) the aggregate investments by the Company and its consolidated Subsidiaries in
Properties which are not office, self-storage or industrial/manufacturing, retail, or
distribution/warehouse in nature shall not exceed 10% of Total Value.

     “Transactions” means the execution, delivery and performance by the Loan Parties of
the Loan Documents to which they are a party, the borrowing of Loans, the use of the proceeds
thereof and the transactions contemplated by the Loan Documents.

     “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the
Adjusted LIBO Rate or the Alternate Base Rate.

     “UCC” means the Uniform Commercial Code as in effect in the State of New York;
provided that, if perfection or the effect of perfection or non-perfection or the priority of any
security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a
jurisdiction other than the State of New York, “UCC” means the Uniform Commercial Code as in effect
from time to time in such other jurisdiction for purposes of the provisions hereof relating to such
perfection, effect of perfection or non-perfection or priority.

     “Unconsolidated Entity” means, with respect to any Person, at any date, any other
Person in whom such Person holds an investment, which investment is accounted for in the financial
statements of such Person on an equity basis of accounting and whose financial results would not be
consolidated under GAAP with the financial results of such Person on the consolidated financial
statements of such Person if such statements were prepared as of such date.

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     “Unencumbered Eligible Project” means an Eligible Project (a) which is located in the
United States, (b) with respect to which either (i) one or more of the Loan Parties has an
ownership interest of 100% or a ground leasehold interest under an Eligible Ground Lease, or
(ii)(A) one or more of the Loan Parties has an ownership interest (whether directly or through an
interest in a Joint Venture) of more than 50%, (B) one or more Affiliates of the Loan Parties has
all of the remaining ownership interests (whether directly or through an interest in a Joint
Venture) not owned by the Loan Parties and (C) the Loan Parties control the management of such
Project, and (c) which is not subject (nor are any equity interests therein owned by the Loan
Parties and their Subsidiaries subject) to any Liens or preferred equity interests, except for
Permitted Encumbrances and buy-sell rights with respect to Joint Ventures on customary terms and
conditions. As used in this definition only, the term “control” shall mean the authority, with
sole discretion, to make major management decisions with respect to the applicable Project,
including with respect to sale, financing, refinancing, capital improvements, leasing and the grant
of Liens on such Project and to manage the day-to-day operations of such Project.

     “Unused Commitment” means, as of any date, with respect to each Lender, its Commitment
less its Revolving Credit Exposure.

     “Unused Commitment Fee Rate” means 0.50% per annum.

     “Wholly-Owned REIT Subsidiary” means any REIT in which the Company owns, directly or
indirectly, 100% of the voting equity thereof.

     “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part 1 of
Subtitle E of Title IV of ERISA.

     Section 1.2 Computations.

     (a) [Intentionally omitted].

     (b) 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.”

     Section 1.3 Terms Generally. The definitions of terms herein shall apply equally to the singular and
plural forms of the terms defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”. The word “will”
shall be construed to have the same meaning and effect as the word “shall”. Unless the context
requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof’ and “hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all references herein to
Articles, Sections, Exhibits and Schedules shall be

24

 

construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and
(e) the words “asset” and “property” shall be construed to have the same meaning and effect and to
refer to any and all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

     Section 1.4 Accounting Terms; GAAP. Except as otherwise expressly provided herein, all terms of an
accounting or financial nature shall be construed in accordance with GAAP, as in effect from time
to time; provided that, if the Company notifies the Administrative Agent that the Company requests
an amendment to any provision hereof to eliminate the effect of any change occurring after the date
hereof in GAAP or in the application thereof on the operation of such provision (or if the
Administrative Agent notifies the Company that the Required Lenders request an amendment to any
provision hereof for such purpose), regardless of whether any such notice is given before or after
such change in GAAP or in the application thereof, then such provision shall be interpreted on the
basis of GAAP as in effect and applied immediately before such change shall have become effective
until such notice shall have been withdrawn or such provision amended in accordance herewith.

ARTICLE II

THE CREDITS

     Section 2.1 Commitments. Subject to the terms and conditions set forth herein, each Lender agrees to
make Revolving Loans to the Borrowers from time to time during the Availability Period in an
aggregate principal amount that will not result in such Lender’s Revolving Credit Exposure
exceeding such Lender’s Commitment. Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrowers may borrow, repay and reborrow Revolving Loans. No
Loans may be borrowed or reborrowed after the end of the Availability Period.

     Section 2.2 Loans and Borrowings.

     (a) Each Revolving Loan shall be made as part of a Borrowing consisting of Revolving Loans
made by the Lenders ratably in accordance with their respective Commitments. The failure of any
Lender to make any Loan required to be made by it shall not relieve any other Lender of its
obligations hereunder; provided that the Commitments of the Lenders are several and no Lender shall
be responsible for any other Lender’s failure to make Loans as required.

     (b) Subject to Section 2.14, each Revolving Borrowing shall be comprised entirely of
ABR Loans or Eurodollar Revolving Loans as the Company on behalf of a Borrower may request in
accordance herewith. Each Lender at its option may make any Eurodollar Loan by causing any
domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any
exercise of such option shall not affect the obligation of a Borrower to repay such Loan in
accordance with the terms of this Agreement.

     (c) At the commencement of each Interest Period for any Eurodollar Revolving Borrowing, such
Borrowing shall be in an aggregate amount that is an integral multiple of $500,000 and not less
than $1,000,000. At the time that each ABR Revolving Borrowing is

25

 

made, such Borrowing shall be in an aggregate amount that is an integral multiple of $500,000
and not less than $1,000,000; provided that an ABR Revolving Borrowing may be in an aggregate
amount that is equal to the entire unused balance of the total Commitments. Borrowings of more
than one Type may be outstanding at the same time; provided that there shall not at any time be
more than a total of eight Eurodollar Revolving Borrowings outstanding.

     (d) Notwithstanding any other provision of this Agreement, the Company, on behalf of a
Borrower, shall not be entitled to request, or to elect to convert to or continue, any Eurodollar
Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date,
or if prohibited by Section 2.8(e).

     Section 2.3 Requests for Revolving Borrowings. To request a Revolving Borrowing, the Company on behalf
of a Borrower shall notify the Administrative Agent of such request by telephone (a) in the case of
a Eurodollar Revolving Borrowing, not later than 11:00 a.m., New York City time, three Business
Days before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not later
than 11:00 a.m., New York City time, one Business Day before the date of the proposed Borrowing.
Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Administrative Agent of a written Borrowing Request substantially in
the form set forth in Exhibit 2.3 and signed by the Company on behalf of the applicable Borrower.
Each such telephonic and written Borrowing Request shall specify the following information in
compliance with Section 2.2 and shall constitute a representation that the conditions in
Section 4.1 and Section 4.2 have been satisfied on such date and will be satisfied
on the date of such Borrowing:

     (i) the Borrower on behalf of which the Revolving Borrowing is being requested;

     (ii) the aggregate amount of the requested Borrowing;

     (iii) the date of such Borrowing, which shall be a Business Day;

     (iv) whether such Borrowing is to be an ABR Borrowing or a Eurodollar Revolving
Borrowing;

     (v) in the case of a Eurodollar Revolving Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by the definition of the term
“Interest Period”; and

     (vi) the location and number of the applicable Borrower’s account to which funds are to
be disbursed, which shall comply with the requirements of Section 2.7.

     If no election as to the Type of Revolving Borrowing is specified, then the requested
Revolving Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to
any requested Eurodollar Revolving Borrowing, then the Company shall be deemed to have selected an
Interest Period of one month’s duration. Promptly following receipt of a Borrowing Request in
accordance with this Section, the Administrative Agent shall advise each Lender of the details
thereof and of the amount of such Lender’s Revolving Loan to be made as part of the requested
Borrowing.

26

 

     Section 2.4 [Intentionally Omitted].

     Section 2.5 [Intentionally Omitted].

     Section 2.6 [Intentionally Omitted].

     Section 2.7 Funding of Revolving Borrowings.

     (a) Each Lender shall make each Revolving Loan to be made by it hereunder on the proposed date
thereof by wire transfer of immediately available funds by 12:00 noon, New York City time, to the
account of the Administrative Agent most recently designated by it for such purpose by notice to
the Lenders. The Administrative Agent will make such Revolving Loans available to the applicable
Borrower by promptly crediting the amounts so received, in like funds, to an account of such
Borrower maintained with the Administrative Agent in New York City and designated in the applicable
Borrowing Request.

     (b) Unless the Administrative Agent shall have received written notice from a Lender prior to
the proposed date of any Revolving Borrowing that such Lender will not make available to the
Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume
that such Lender has made such share available on such date in accordance with paragraph (a) of
this Section and may, in reliance upon such assumption, make available to the applicable Borrower a
corresponding amount. In such event, if a Lender has not in fact made its share of the applicable
Borrowing available to the Administrative Agent, then the applicable Lender and the applicable
Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding
amount with interest thereon, for each day from and including the date such amount is made
available to such Borrower to but excluding the date of payment to the Administrative Agent, at (i)
in the case of such Lender, the greater of the Federal Funds Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in
the case of such Borrower, the interest rate applicable to ABR Loans. If such Lender pays such
amount to the Administrative Agent, then such amount shall constitute such Lender’s Revolving Loan
included in such Borrowing as of the date of such Borrowing. If any interest is paid by such
Borrower as described above for any period with respect to any amount funded by the Administrative
Agent pursuant to this paragraph, such Borrower shall not be required to pay interest on such
amount pursuant to Section 2.13 in respect of such period.

     Section 2.8 Interest Elections.

     (a) Each Revolving Borrowing initially shall be of the Type specified in the applicable
Borrowing Request and, in the case of a Eurodollar Revolving Borrowing, shall have an initial
Interest Period as specified in such Borrowing Request. Thereafter, the Company, on behalf of a
Borrower, may elect to convert such Revolving Borrowing to a different Type or to continue such
Borrowing and, in the case of a Eurodollar Revolving Borrowing, may elect Interest Periods
therefor, all as provided in this Section. The Company, on behalf of a Borrower, may elect
different options with respect to different portions of the affected Revolving Borrowing, in which
case each such portion shall be allocated ratably among the Lenders

27

 

holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall
be considered a separate Borrowing.

     (b) To make an election pursuant to this Section, the Company, on behalf of the applicable
Borrower, shall notify the Administrative Agent of such election by telephone by the time that a
Borrowing Request would be required under Section 2.3 if a request were being made of a
Revolving Borrowing of the Type resulting from such election to be made on the effective date of
such election. Each such telephonic Interest Election Request shall be irrevocable and shall be
confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Interest
Election Request in a form approved by the Administrative Agent and signed by the Company on behalf
of the applicable Borrower.

     (c) Each telephonic and written Interest Election Request shall specify the following
information in compliance with Section 2.2:

     (i) the Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the portions thereof
to be allocated to each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

     (ii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;

     (iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar
Revolving Borrowing; and

     (iv) if the resulting Borrowing is a Eurodollar Revolving Borrowing, the Interest
Period to be applicable thereto after giving effect to such election, which shall be a
period contemplated by the definition of the term “Interest Period”.

     If any such Interest Election Request requests a Eurodollar Revolving Borrowing but
does not specify an Interest Period, then the Company shall be deemed to have selected an
Interest Period of one month’s duration.

     (d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall
advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

     (e) If the Company fails to deliver a timely Interest Election Request with respect to a
Eurodollar Revolving Borrowing prior to the end of the Interest Period applicable thereto, then,
unless such Borrowing is repaid as provided herein, at the end of such Interest Period such
Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof,
if an Event of Default has occurred and is continuing and the Administrative Agent, at the request
of the Required Lenders, so notifies the Company, then, so long as an Event of Default is
continuing (i) no outstanding Revolving Borrowing may be converted to or continued as a Eurodollar
Borrowing and (ii) unless repaid, each Eurodollar Revolving Borrowing shall be converted to an ABR
Borrowing at the end of the Interest Period applicable thereto.

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     Section 2.9 Termination and Reduction of Commitments.

     (a) Unless previously terminated, the Commitments shall terminate on the Maturity Date.

     (b) The Company may at any time terminate, or from time to time reduce, the Commitments;
provided that (i) each reduction of the Commitments shall be in an amount that is an integral
multiple of $500,000 and not less than $5,000,000, (ii) the Company shall not terminate or reduce
the Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance
with Section 2.11, the sum of the Revolving Credit Exposures would exceed the total
Commitments and (iii) the Company shall not reduce the total Commitments to an amount less than
$10,000,000 unless the Commitments are terminated.

     (c) The Company shall notify the Administrative Agent of any election to terminate or reduce
the Commitments under paragraph (b) of this Section at least three Business Days prior to the
effective date of such termination or reduction, specifying such election and the effective date
thereof. Promptly following receipt of any such notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by the Company pursuant to this Section
2.9 shall be irrevocable; provided that a notice of termination of the Commitments delivered by
the Company may state that such notice is conditioned upon the effectiveness of other credit
facilities, in which case such notice may be revoked by the Company (by notice to the
Administrative Agent on or prior to the specified effective date) if such condition is not
satisfied. Any termination or reduction of the Commitments shall be permanent. Each reduction of
the Commitments shall be made ratably among the Lenders in accordance with their respective
Commitments.

     Section 2.10 Repayment of Loans; Evidence of Debt.

     (a) The applicable Borrower hereby unconditionally promises to pay to the Administrative Agent
for the account of each Lender the then unpaid principal amount of each Revolving Loan not later
than the Maturity Date.

     (b) [Intentionally omitted].

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

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

     (e) The entries made in the accounts maintained pursuant to paragraph (c) or (d) of this
Section shall be prima facie evidence of the existence and amounts of the obligations

29

 

recorded therein, provided that the failure of any Lender or the Administrative Agent to
maintain such accounts or any error therein shall not in any manner affect the obligation of the
Borrowers to repay the Loans in accordance with the terms of this Agreement.

     (f) Any Lender may request that Loans made by it be evidenced by a Note. In such event, the
Borrowers shall prepare, execute and deliver to such Lender a Note payable to the order of such
Lender (or, if requested by such Lender, to such Lender and its registered assigns). Thereafter,
the Loans evidenced by such Note and interest thereon shall at all times (including after
assignment pursuant to Section 9.4) be represented by one or more Notes in such form
payable to the order of the payee named therein.

     Section 2.11 Prepayment of Loans.

     (a) The Borrowers shall have the right at any time and from time to time to prepay any
Borrowing in whole or in part, subject to prior notice in accordance with paragraph (b) of this
Section 2.11.

     (b) The Company, on behalf of the applicable Borrower, shall notify the Administrative Agent
by telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of prepayment of a
Eurodollar Revolving Borrowing, not later than 11:00 a.m., New York City time, three Business Days
before the date of prepayment and (ii) in the case of prepayment of an ABR Revolving Borrowing, not
later than 11:00 a.m., New York City time, one Business Day before the date of prepayment. Each
such notice shall be irrevocable and shall specify the prepayment date and the principal amount of
each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment is given
in connection with a conditional notice of termination of the Commitments as contemplated by
Section 2.9, then such notice of prepayment may be revoked if such notice of termination is
revoked in accordance with Section 2.9. Promptly following receipt of any such notice
relating to a Revolving Borrowing, the Administrative Agent shall advise the Lenders of the
contents thereof. Each partial prepayment of any Revolving Borrowing shall be in an amount that
would be permitted in the case of an advance of a Revolving Borrowing of the same Type as provided
in Section 2.2. Each prepayment of a Revolving Borrowing shall be applied ratably to the
Loans included in the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to
the extent required by Section 2.13.

     (c) The Borrowers shall prepay Loans to the extent required by Section 5.2(b).

     Section 2.12 Fees.

     (a) During the period from and including the Closing Date to but excluding the date on which
the Commitments terminate, the Borrowers agree to pay to the Administrative Agent for the account
of each Lender an unused commitment fee equal to the Unused Commitment Fee Rate on the daily amount
of the Unused Commitment of such Lender (the “Unused Commitment Fee Amount”). Accrued
Unused Commitment Fee Amounts shall be payable quarterly in arrears on the last day of March, June,
September and December of each year commencing on the first such date after the Closing Date, and
on the date on which the Commitments terminate. All fees shall be computed on the basis of a year
of 360 days and shall be payable for the actual number

30

 

of days elapsed (including the first day but excluding the last day).Each determination by the
Administrative Agent of a fee hereunder shall be conclusive and binding for all purposes, absent
manifest error.

     (b) The Company agrees to pay, or cause to be paid, to each Lender an upfront fee equal to
0.25% of its Commitment, payable in full on the Closing Date.

     (c) The Company agrees to pay, or cause to be paid, to the Administrative Agent, for its own
account, fees payable in the amounts and at the times separately agreed upon between the Company
and the Administrative Agent.

     (d) All fees payable hereunder shall be paid on the dates due, in immediately available funds,
to the Administrative Agent for distribution, in the case of fees pursuant to paragraph (a) above,
to the Lenders. Fees paid shall not be refundable under any circumstances.

     Section 2.13 Interest.

     (a) The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate
plus the Applicable Rate.

     (b) The Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO
Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.

     (c) Notwithstanding the foregoing, (i) if any principal of or interest on any Loan or any fee
or other amount payable by the Borrowers hereunder is not paid when due, whether at stated
maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as
before judgment, at a rate per annum equal to (A) in the case of overdue principal of any Loan, 2%
plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this
Section or (B) in the case of any other amount, 2% plus the rate applicable to ABR Loans as
provided in paragraph (a) of this Section and (ii) for so long as an Event of Default has occurred
and is continuing, the principal balance of all Loans and other Obligations shall bear interest at
a rate per annum equal to 2% plus the rate otherwise applicable to such Loans and other Obligations
(which for any amounts other than principal of and interest on Loans shall be the rate applicable
to ABR Loans).

     (d) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan and upon termination of the Commitments; provided that (i) interest accrued pursuant
to paragraph (c) of this Section shall be payable on demand, (ii) in the event of any repayment or
prepayment of any Loan (other than a prepayment of an ABR Revolving Loan prior to the end of the
Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable
on the date of such repayment or prepayment and (iii) in the event of any conversion of any
Eurodollar Revolving Loan prior to the end of the current Interest Period therefor, accrued
interest on such Loan shall be payable on the effective date of such conversion.

     (e) All computations of interest for ABR Loans (including ABR Loans determined by reference to
clause (c) of the definition of Alternate Base 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

31

 

interest shall be made on the basis of a 360-day year and actual days elapsed (which results
in more interest 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, subject to Section 2.18(a), bear
interest for one day. Each determination by the Administrative Agent of an interest rate hereunder
shall be conclusive and binding for all purposes, absent manifest error.

     Section 2.14 Alternate Rate of Interest. If prior to the commencement of any Interest Period for a
Eurodollar Borrowing:

     (a) the Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO
Rate or the LIBO Rate, as applicable, for such Interest Period; or

     (b) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate or
the LIBO Rate, as applicable, for such Interest Period will not adequately and fairly reflect the
cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in
such Borrowing for such Interest Period;

     then the Administrative Agent shall give notice thereof to the Company and the Lenders by
telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent
notifies the Company and the Lenders that the circumstances giving rise to such notice no longer
exist, (i) any Interest Election Request that requests the conversion of any Revolving Borrowing
to, or continuation of any Revolving Borrowing as, a Eurodollar Borrowing shall be ineffective and
(ii) if any Borrowing Request requests a Eurodollar Revolving Borrowing, such Borrowing shall be
made as an ABR Borrowing.

     Section 2.15 Increased Costs.

     (a) If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate); or

     (ii) impose on any Lender or the London interbank market any other condition affecting
this Agreement or Eurodollar Loans made by such Lender; and the result of any of the
foregoing shall be to increase the cost to such Lender of making or maintaining any
Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to reduce the
amount of any sum received or receivable by such Lender hereunder (whether of principal,
interest or otherwise), then the applicable Borrowers will pay to such Lender such
additional amount or amounts as will compensate such Lender for such additional costs
incurred or reduction suffered.

     (b) If any Lender determines that any Change in Law regarding capital requirements has or
would have the effect of reducing the rate of return on such Lender’s capital or on the

32

 

capital of such Lender’s holding company, if any, as a consequence of this Agreement or the
Loans made by such Lender to a level below that which such Lender or such Lender’s holding company
could have achieved but for such Change in Law (taking into consideration such Lender’s policies
and the policies of such Lender’s holding company with respect to capital adequacy), then from time
to time the applicable Borrowers will pay to such Lender such additional amount or amounts as will
compensate such Lender or such Lender’s holding company for any such reduction suffered.

     (c) A certificate of a Lender setting forth the amount or amounts necessary to compensate such
Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this
Section shall be delivered to the Company and shall be conclusive absent manifest error. The
applicable Borrowers shall pay such Lender the amount shown as due on any such certificate within
10 days after receipt thereof.

     (d) Failure or delay on the part of any Lender to demand compensation pursuant to this
Section 2.15 shall not constitute a waiver of such Lender’s right to demand such
compensation; provided that the Borrowers shall not be required to compensate a Lender pursuant to
this Section for any increased costs or reductions incurred more than 270 days prior to the date
that such Lender notifies the Company on behalf of the Borrowers of the Change in Law giving rise
to such increased costs or reductions and of such Lender’s intention to claim compensation
therefor; provided further that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the 270-day period referred to above shall be extended to include
the period of retroactive effect thereof.

     Section 2.16 Break Funding Payments. In the event of (a) the payment of any principal of any Eurodollar
Loan other than on the last day of an Interest Period applicable thereto (including as a result of
an Event of Default), (b) the conversion of any Eurodollar Revolving Loan other than on the last
day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or
prepay any Revolving Loan on the date specified in any notice delivered pursuant hereto (regardless
of whether such notice may be revoked under Section 2.11 (b) and is revoked in accordance
therewith), or (d) the assignment of any Eurodollar Loan other than on the last day of the Interest
Period applicable thereto as a result of a request pursuant to Section 2.19, then, in any
such event, the applicable Borrower shall compensate each Lender for the loss, cost and expense
attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense to any
Lender shall include an amount determined by such Lender to be the excess, if any, of (i) the
amount of interest which would have accrued on the principal amount of such Loan had such event not
occurred, at the Adjusted LIBO Rate that would have been applicable to such Loan, for the period
from the date of such event to the last day of the then current Interest Period therefor (or, in
the case of a failure to borrow, convert or continue, for the period that would have been the
Interest Period for such Loan), over (ii) the amount of interest which would accrue on such
principal amount for such period at the interest rate which such Lender would bid were it to bid,
at the commencement of such period, for Dollar deposits of a comparable amount and period from
other banks in the eurodollar market. A certificate of any Lender setting forth any amount or
amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the
Administrative Agent and shall be conclusive absent manifest error. Each Borrower shall pay such
Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

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     Section 2.17 Taxes.

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

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

     (c) The Borrowers shall indemnify the Administrative Agent and each Lender, within 10 days
after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by
the Administrative Agent or such Lender, as the case may be, on or with respect to any payment by
or on account of any obligation of the Borrowers hereunder (including Indemnified Taxes or Other
Taxes imposed or asserted on or attributable to amounts payable under this Section 2.17)
and any penalties, interest and reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted
by the relevant Governmental Authority. A certificate as to the amount of such payment or
liability delivered to the Company on behalf of the Borrowers by a Lender, or by the Administrative
Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

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

     (e) As a condition to becoming a Lender hereunder, any Foreign Lender (including any
assignee), that is entitled to an exemption from or reduction of withholding tax under the law of
the jurisdiction in which any Borrower is located, or any treaty to which such jurisdiction is a
party, with respect to payments under this Agreement shall deliver to the Company on behalf of the
Borrowers (with a copy to the Administrative Agent), at the time or times prescribed by applicable
law, such properly completed and executed documentation prescribed by applicable law or reasonably
requested by the Company on behalf of a Borrower as will permit such payments to be made without
withholding or at a reduced rate.

     Section 2.18 Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

     (a) The Borrowers shall make each payment required to be made by them hereunder (whether of
principal, interest or fees, or of amounts payable under Section 2.15, 2.16 or 2.17, or
otherwise) prior to 12:00 noon, New York City time, on the date when due, in immediately

34

 

available funds, without defense, set-off or counterclaim. Any amounts received after such
time on any date may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating interest thereon. All
such payments shall be made to the Administrative Agent at its offices as set forth in Section
9.1 and except that payments pursuant to Sections 2.15, 2.16, 2.17 and 9.3 shall be
made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such
payments received by it for the account of any other Person to the appropriate recipient promptly
following receipt thereof. If any payment hereunder shall be due on a day that is not a Business
Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case
of any payment accruing interest, interest thereon shall be payable for the period of such
extension. All payments hereunder shall be made in Dollars.

     (b) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise,
except pursuant to Section 2.19, obtain payment in respect of any principal of or interest
on any of its Revolving Loans resulting in such Lender receiving payment of a greater proportion of
the aggregate amount of its Revolving Loans than the proportion received by any other Lender, then
the Lender receiving such greater proportion shall purchase (for cash at face value) participations
in the Revolving Loans of other Lenders to the extent necessary so that the benefit of all such
payments shall be shared by the Lenders ratably in accordance with the aggregate amount of
principal of and accrued interest on their respective Revolving Loans; provided that (i) if any
such participations are purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price restored to the extent of
such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed
to apply to any payment made by the Borrowers pursuant to and in accordance with the express terms
of this Agreement or any payment obtained by a Lender as consideration for the assignment of or
sale of a participation in any of its Loans to any assignee or participant, other than to the
Company or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall
apply). The Loan Parties consent to the foregoing and agree, to the extent they may effectively do
so under applicable law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against a Loan Party rights of set-off and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation.

     (c) Unless the Administrative Agent shall have received notice from the Company on behalf of a
Borrower prior to the date on which any payment is due to the Administrative Agent for the account
of the Lenders that such Borrower will not make such payment, the Administrative Agent may assume
that such Borrower has made such payment on such date in accordance herewith and may, in reliance
upon such assumption, distribute to the Lenders the amount due. In such event, if such Borrower
has not in fact made such payment, then each of the Lenders severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such Lender with interest
thereon, for each day from and including the date such amount is distributed to it to but excluding
the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a
rate determined by the Administrative Agent in accordance with banking industry rules on interbank
compensation.

     (d) If any Lender shall fail to make any payment required to be made by it pursuant to
Sections 2.7(b) or 2.18(c), then the Administrative Agent may, in its discretion
(notwithstanding

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any contrary provision hereof), apply any amounts thereafter received by the Administrative
Agent for the account of such Lender to satisfy such Lender’s obligations under such Sections until
all such unsatisfied obligations are fully paid.

     Section 2.19 Mitigation Obligations; Replacement of Lenders.

     (a) If any Lender requests compensation under Section 2.15, or if a Borrower is
required to pay any additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 2.17, then such Lender shall use reasonable efforts to
designate a different lending office for funding or booking its Loans hereunder or to assign its
rights and obligations hereunder to another of its offices, branches or affiliates, if, in the
judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts
payable pursuant to Section 2.15 or 2.17, as the case may be, in the future and (ii) would
not subject such Lender to any unreimbursed cost or expense and would not otherwise be
disadvantageous to such Lender. The applicable Borrower hereby agrees to pay all reasonable costs
and expenses incurred by any Lender in connection with any such designation or assignment.

     (b) If any Lender requests compensation under Section 2.15, or if a Borrower is
required to pay any additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 2.17, or if any Lender defaults in its obligation to fund
Loans hereunder, then the Company on behalf of the applicable Borrower may, at its sole expense and
effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and
delegate, without recourse (in accordance with and subject to the restrictions contained in
Section 9.4), all its interests, rights and obligations under this Agreement to an assignee
that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (i) such Borrower shall have received the prior written consent of the
Administrative Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall have
received payment of an amount equal to the outstanding principal of its Loans, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the
extent of such outstanding principal and accrued interest and fees) or such Borrower (in the case
of all other amounts) and (iii) in the case of any such assignment resulting from a claim for
compensation under Section 2.15 or payments required to be made pursuant to Section
2.17, such assignment will result in a reduction in such compensation or payments. A Lender
shall not be required to make any such assignment and delegation if, prior thereto, as a result of
a waiver by such Lender or otherwise, the circumstances entitling the Company to require such
assignment and delegation cease to apply.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     The Loan Parties represent and warrant to the Lenders and the Administrative Agent that:

     Section 3.1 Organization; Powers. Each of the Loan Parties and their Subsidiaries is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its

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organization, has all requisite power and authority to carry on its business as now conducted and,
except where the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business in, and is in good
standing in, every jurisdiction where such qualification is required.

     Section 3.2 Authorization; Enforceability.

     (a) The Transactions are within each Loan Party’s powers and have been duly authorized by all
necessary limited liability company, limited partnership or corporate action of such Loan Party.
Each of the Loan Parties has the requisite power and authority to perform this Agreement and the
other Loan Documents to which it is a party. This Agreement has been duly authorized, executed and
delivered by each Loan Party party hereto and constitutes a legal, valid and binding obligation of
such Loan Party, enforceable in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and
subject to general principles of equity, regardless of whether considered in a proceeding in equity
or at law.

     (b) As of the date of delivery of the Company’s last compliance certificate delivered prior to
the Closing Date pursuant to the LLC Credit Agreement and as of the date of each delivery of an
Annual Compliance Certificate, Schedule 3.2 is a complete and accurate list of the Company and its
Subsidiaries, showing the correct name of each Subsidiary. The outstanding equity interests of the
Company and all of the Subsidiaries are validly issued, fully paid and non-assessable and are owned
by such entity free and clear of all Liens, except for Liens permitted by this Agreement.

     (c) The Loan Parties and their Subsidiaries are and, after consummation of the transactions
contemplated by this Agreement, will be Solvent.

     Section 3.3 Governmental Approvals; No Conflicts. The Transactions (a) do not require any consent or
approval of, registration or filing with, or any other action by, any Governmental Authority,
except such as have been obtained or made and are in full force and effect and filings and
recordings in respect of the Liens created pursuant to the Collateral Documents, (b) will not
violate, and will not require any consent or approval under, any applicable law or regulation or
the certificate of formation, limited liability company agreement, certificate of limited
partnership, limited partnership agreement or other organizational documents of the Company or any
of its Subsidiaries or any order of any Governmental Authority, (c) will not violate or result in a
default under any indenture, agreement or other instrument binding upon any of the Company or any
of its Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be
made by the Company or any of its Subsidiaries, and (d) will not result in the creation or
imposition of any Lien on any asset of the Company or any of its Subsidiaries, except for Liens
created pursuant to the Collateral Documents.

     Section 3.4 Financial Condition; No Material Adverse Effect.

     (a) The Company has heretofore furnished to the Lenders the audited consolidated balance sheet
of the Company and its consolidated Subsidiaries for the fiscal year ended

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December 31, 2010, and the related consolidated statements of income or operations,
shareholders’ equity and cash flows for such fiscal year of the Company and its consolidated
Subsidiaries, including the notes thereto.

     (b) Since December 31, 2010, there has been no event that has caused or could reasonably be
expected to cause a Material Adverse Effect.

     Section 3.5 Properties.

     (a) Each of the Loan Parties and their Subsidiaries has good title to, or valid leasehold
interests in, all its Property material to its business, except for minor defects in title that do
not interfere with its ability to conduct its business as currently conducted or to utilize such
properties for their intended purposes.

     (b) Each of the Loan Parties and their Subsidiaries owns, or is licensed to use, all
trademarks, trade names, copyrights, patents and other intellectual property material to its
business, and the use thereof by the Loan Parties and their Subsidiaries does not infringe upon the
rights of any other Person, except for any such infringements that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect.

     (c) A true and correct copy of each lease affecting any part of the Mortgaged Properties has
been delivered to the Administrative Agent and, except as shown on Schedule 3.5(c), no lease
contains (i) any option to purchase all or any portion of any Mortgaged Property or any interest
therein (ii) any right of first refusal relating to any sale of any Mortgaged Property or any
portion thereof or interest therein or (iii) any termination right.

     (d) The rent roll for each Mortgaged Property attached hereto as Schedule 3.5(d) is true,
accurate and complete.

     Section 3.6 Litigation And Environmental Matters.

     (a) There are no actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of a Loan Party, threatened against or affecting a
Loan Party or any of their Subsidiaries (i) as to which there is a reasonable possibility of an
adverse determination and that, if adversely determined, could reasonably be expected, individually
or in the aggregate, to result in a Material Adverse Effect (other than the Disclosed Matters) or
(ii) that involve this Agreement, any of the other Loan Documents or the Transactions.

     (b) Except for the Disclosed Matters and except with respect to any other matters that,
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse
Effect, neither a Loan Party nor any of its Subsidiaries (i) has failed to comply with any
Environmental Law or to obtain, maintain or comply with any permit, license or other approval
required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii)
has received notice of any claim with respect to any Environmental Liability or (iv) knows of any
basis for any Environmental Liability.

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     Section 3.7 Compliance With Laws And Agreements. Each of the Loan Parties and their Subsidiaries is in
compliance with all laws, regulations and orders of any Governmental Authority applicable to it or
its property and all indentures, agreements and other instruments binding upon it or its property,
except where the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.

     Section 3.8 Investment Company Status. Neither any Loan Party nor any of its Subsidiaries is an
“investment company” as defined in, or subject to regulation under, the Investment Company Act of
1940.

     Section 3.9 Taxes. Each of the Loan Parties and their Subsidiaries has timely filed or caused to be
filed all Tax returns and reports required to have been filed and has paid or caused to be paid all
Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by
appropriate proceedings and for which such Loan Party or such Subsidiary, as applicable, has set
aside on its books adequate reserves with respect thereto and (b) only to the extent that the
failure to do so (x) could not reasonably be expected to result in a Material Adverse Effect and
(y) will not result in the imposition of a Lien on any of the Collateral other than a Permitted
Encumbrance.

     Section 3.10 ERISA. No ERISA Event has occurred or is reasonably expected to occur that, when taken
together with all other ERISA Events for which liability is reasonably expected to occur, could
reasonably be expected to result in a Material Adverse Effect.

     Section 3.11 Disclosure. The Company has disclosed to the Lenders all agreements, instruments and
corporate or other restrictions to which it or any of its Subsidiaries is subject, and all other
matters known to it, that, individually or in the aggregate, could reasonably be expected to result
in a Material Adverse Effect. None of the SEC Reports (as defined in Section 3.12) and
none of the reports, financial statements, certificates or other information furnished by or on
behalf of the Company and its Subsidiaries to the Administrative Agent or any Lender in connection
with the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other
information so furnished) contains any material misstatement of fact or omits to state any material
fact necessary, in the aggregate, to make the statements therein, in the light of the circumstances
under which they were made, not misleading, provided that, with respect to projected financial
information, the Company represents only that such information was prepared in good faith based
upon assumptions believed to be reasonable at the time.

     Section 3.12 SEC Reports. As of the Closing Date, the Company has filed all forms, reports, statements
(including proxy statements) and other documents (such filings by the Company are collectively
referred to as the “SEC Reports”), required to be filed by it with the Securities and
Exchange Commission. The SEC Reports, including all SEC Reports filed after the Closing Date and
on or prior to the date of this Agreement, (i) were or will be prepared in all material respects in
accordance with the requirements of the Securities Act of 1933, as amended, and the Securities
Exchange Act of 1934, as amended, as the case may be, and the rules and regulations of the
Securities and Exchange Commission thereunder applicable to such SEC Reports at the time of filing
thereof and (ii) did not at the time they were filed, or will not at the time they are filed,
contain any untrue statement of a material fact or omit to state a material fact

39

 

required to be stated therein or necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading.

     Section 3.13 Collateral; Security Interest. Each Collateral Document is effective to create in favor of
the Administrative Agent for the benefit of the Secured Parties a legal, valid and enforceable
security interest in the Collateral subject thereto and such security interest will, upon filing or
recording of the necessary documentation in the applicable jurisdiction in accordance with such
Collateral Document, be perfected to the extent required by (and with the priority required by)
such Collateral Document and this Agreement, subject only to Permitted Encumbrances.

ARTICLE IV

CONDITIONS

     Section 4.1 Closing Date. The obligations of the Lenders to make Loans hereunder shall not become
effective until the date on which each of the following conditions is satisfied in form and
substance acceptable to the Administrative Agent and the Lenders (or waived in accordance with
Section 9.2):

     (a) The Administrative Agent (or its counsel) shall have received from each party hereto a
counterpart signed on behalf of such party, or written evidence satisfactory to the Administrative
Agent (which may include telecopy transmission or by means of other electronic imaging of a signed
signature page of each such Loan Document) that such party has signed a counterpart, of this
Agreement and all such other Loan Documents to which it is a party required to be delivered to the
Administrative Agent, including:

     (i) deeds of trust, trust deeds, deeds to secure debt, mortgages, leasehold mortgages
and leasehold deeds of trust, in form and substance reasonably satisfactory to the
Administrative Agent and covering the Mortgaged Properties (together with the fixture
filings and Assignments of Leases and Rents in form and substance reasonably satisfactory to
the Administrative Agent and each other mortgage delivered in connection with this
Agreement, in each case as amended, the “Mortgages”), duly executed by the
appropriate Loan Party, together with:

     (A) evidence that counterparts of the Mortgages and Assignments of Leases and
Rents have been duly executed, acknowledged and delivered and are in form suitable
for filing or recording in all filing or recording offices that the Administrative
Agent may deem necessary or desirable in order to create a valid first and
subsisting Lien on the property described therein in favor of the Administrative
Agent for the benefit of the Secured Parties and that all filing, documentary,
stamp, intangible and recording taxes and other fees in connection therewith have
been paid

     (B) fully paid American Land Title Association Lender’s Extended Coverage title
insurance policies (the “Mortgage Policies”), with endorsements and in
amounts acceptable to the Administrative Agent, issued, coinsured and

40

 

reinsured by title insurers acceptable to the Administrative Agent, insuring
the Mortgages to be valid first and subsisting Liens on the property described
therein, free and clear of all defects (including, but not limited to, mechanics’
and materialmen’s Liens) and encumbrances, excepting only Permitted Encumbrances
(other than as described in subparagraph (b) of such definition) and such Liens as
are identified on the Mortgage Policy applicable to such property and acceptable to
the Administrative Agent, and providing for such other affirmative insurance and
such coinsurance and direct access reinsurance as the Administrative Agent may deem
necessary or desirable,

     (C) evidence of the insurance required by the terms of Section 3.3(a) of the
Mortgages,

     (D) a completed “Life-of-Loan” Federal Emergency Management Agency Standard
Flood Hazard Determination with respect to each Mortgaged Property (together with a
notice about special flood hazard area status and flood disaster assistance duly
executed by the Company and each Borrower relating thereto),

     (E) copies of all tenant leases affecting the improvements located on each of
the Mortgaged Properties, and

     (F) a rent roll showing the tenant, the square footage demised, the rent and
additional rent payable under the lease, the expiration date and any extension
options not yet exercised.

     (b) The Administrative Agent shall have received favorable opinions of Clifford Chance US LLP
and Reed Smith LLP, counsel to the Loan Parties, addressed to the Administrative Agent and each
Lender, as to such matters concerning the Loan Parties and the Loan Documents as the Administrative
Agent may reasonably request. The Company hereby requests such counsel to deliver such opinions.

     (c) The Administrative Agent shall have received such documents and certificates as the
Administrative Agent or its counsel may reasonably request relating to the organization, existence
and good standing of each Loan Party, the authorization of the Transactions and any other legal
matters relating to the Loan Parties and their Affiliates and Subsidiaries, this Agreement, the
other Loan Documents or the Transactions, all in form and substance satisfactory to the
Administrative Agent and its counsel. If requested by any Lender, the Administrative Agent shall
provide to such Lender a copy of the documents and certificates received by the Administrative
Agent pursuant to this Section 4.1(c).

     (d) The Administrative Agent shall have received a certificate, dated the Closing Date and
signed by the President or a Vice President of the Company or by a Financial Officer, confirming
compliance with the conditions set forth in paragraphs (a) and (b) of Section 4.2.

     (e) The Administrative Agent shall have received all fees and other amounts due and payable on
or prior to the Closing Date, including, to the extent invoiced at least one Business

41

 

Day prior to the Closing Date, reimbursement or payment of all reasonable out-of-pocket
expenses required to be reimbursed or paid by the Loan Parties hereunder.

     (f) The Administrative Agent (or its counsel) shall have received copies of UCC, tax and
judgment lien searches, or equivalent reports or searches, each of a recent date listing all
effective financing statements, lien notices or comparable documents (together with copies of such
financing statements and documents) that name any Loan Party as debtor and that are filed in those
state and county jurisdictions in which any Loan Party is organized or maintains its principal
place of business and such other searches that the Administrative Agent deems necessary or
appropriate, none of which encumber the Collateral covered or intended to be covered by the
Collateral Documents.

     (g) The Administrative Agent (or its counsel) shall have received evidence that all other
actions, recordings and filings that the Administrative Agent may deem necessary or desirable in
order to create and perfect valid first and subsisting Liens, subject only to Permitted
Encumbrances, on the property described in the Mortgages have been taken.

     Without limiting the generality of the provisions of Section 8.3, for purposes of
determining compliance with the conditions specified in this Section 4.1, 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 of which it has received or has
access to a copy or notice thereof and which is to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Administrative Agent shall have received notice from such
Lender prior to the proposed Closing Date specifying its objection thereto.

     The Administrative Agent shall notify the Company and the Lenders of the Closing Date, and
such notice shall be conclusive and binding.

     Section 4.2 Each Credit Event. The obligation of each Lender to make a Loan on the occasion of any
Borrowing (such Borrowing referred to herein as a “Credit Event”), is subject to the
satisfaction of the following conditions:

     (a) The representations and warranties set forth in this Agreement and the other Loan
Documents shall be true and correct in all material respects on and as of the date of such Credit
Event.

     (b) At the time of and immediately after giving effect to such Credit Event, no Default shall
have occurred and be continuing.

     Each Credit Event shall be deemed to constitute a representation and warranty by the Company
on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section
4.2.

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ARTICLE V

AFFIRMATIVE COVENANTS

     Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder shall have been paid in full, the Loan Parties covenant
and agree with the Lenders that:

     Section 5.1 Financial Statements and Other Information. The Company will furnish to the Administrative
Agent and each Lender:

     (a) Quarterly Reports.

     (i) Company Quarterly Financial Reports. As soon as practicable, and in any
event within forty-five (45) days after the end of each fiscal quarter in each fiscal year
(other than the last fiscal quarter in each fiscal year), the Financial Statements on Form
10-Q as of the end of such period and a report setting forth in comparative form the
corresponding figures for the corresponding date or period of the previous fiscal year,
certified by a Financial Officer as fairly presenting the consolidated financial position of
the Company and its Subsidiaries as at the date indicated and the results of their
operations and cash flow for the period indicated in accordance with GAAP, subject to normal
quarterly adjustments.

     (ii) Quarterly Compliance Certificates. Together with each delivery of any
quarterly report pursuant to paragraph (a)(i) of this Section 5.1, a Quarterly
Compliance Certificate, representing and certifying (1) that the Financial Officer signatory
thereto has reviewed the terms of this Agreement, and has made, or caused to be made, under
his/her supervision, a review in reasonable detail of the Transactions and consolidated
financial condition of the Company and its Subsidiaries during the fiscal quarter covered by
such reports, that such review has not disclosed the existence during or at the end of such
fiscal quarter, and that such officer does not have knowledge of the existence as at the
date of such Officer’s Certificate, of any condition or event which constitutes a Default,
or, if any such condition or event existed or exists, specifying the nature and period of
existence thereof and what action the Company or any of its Subsidiaries has taken, is
taking and proposes to take with respect thereto, (2) a schedule of the Loan Parties and
their Subsidiaries’ outstanding Indebtedness, including the amount, maturity and interest
rate, as well as such other information regarding such Indebtedness as may be reasonably
requested by the Administrative Agent, (3) a schedule of Adjusted Total EBITDA, (4)
calculations, in the form of Exhibit 5.1 evidencing compliance with each of the financial
covenants set forth in Article VI, (5) that each Mortgaged Property is being
actively utilized by the tenant for its business purposes and, to the extent any Mortgaged
Property is not, describing in reasonable detail the circumstances around that property and
its failure to be actively utilized and (6) calculations of (x) the aggregate Net Operating
Income of all Mortgaged Properties and (y) the Aggregate Capped Value.

     (b) Annual Reports.

     (i) Company Financial Statements. As soon as practicable, and in any event
within ninety (90) days after the end of each fiscal year, (i) the Financial Statements on
Form 10-K as of the end of such fiscal year and a report setting forth in comparative form
the corresponding figures from the consolidated Financial Statements for the prior fiscal

43

 

year; (ii) a report with respect thereto of PricewaterhouseCoopers LLP or other
independent certified public accountants of recognized national standing (without a “going
concern” or like qualification or exception, and without any qualification or exception as
to the scope of such audit), which report shall state that such financial statements fairly
present the consolidated financial position of the Company and its Subsidiaries as at the
dates indicated and the results of their operations and cash flow for the periods indicated
in conformity with GAAP applied on a basis consistent with prior years (except for changes
with which PricewaterhouseCoopers LLP or any such other independent certified public
accountants, if applicable, shall concur and which shall have been disclosed in the notes to
such financial statements) (which report shall be subject to the confidentiality limitations
set forth herein); and (iii) in the event that the report referred to in clause (ii) above
is qualified, a copy of the management letter or any similar report delivered to the Company
or to any officer or employee thereof by such independent certified public accountants in
connection with such financial statements.

     (ii) Annual Compliance Certificates. Together with each delivery of any annual
report pursuant to clause (i) of this Section 5.1(b), an Annual Compliance
Certificate, representing and certifying (1) that the officer signatory thereto has reviewed
the terms of this Agreement, and has made, or caused to be made under his/her supervision, a
review in reasonable detail of the Transactions and consolidated financial condition of the
Company and its Subsidiaries, during the accounting period covered by such reports, that
such review has not disclosed the existence during or at the end of such accounting period,
and that such officer does not have knowledge of the existence as at the date of such
Officer’s Certificate, of any condition or event which constitutes a Default, or, if any
such condition or event existed or exists, specifying the nature and period of existence
thereof and what action the Company or any of its Subsidiaries has taken, is taking and
proposes to take with respect thereto, (2) a schedule of the Loan Parties and their
Subsidiaries’ outstanding Indebtedness including the amount, maturity and interest rate, as
well as such other information regarding such Indebtedness as may be reasonably requested by
the Administrative Agent, (3) a schedule of Adjusted Total EBITDA, (4) calculations, in the
form of Exhibit 5.1, evidencing compliance with each of the financial covenants set forth in
Article VI, (5) an update of Schedule 3.2, if applicable, (6) that each Mortgaged
Property is being actively utilized by the tenant for its business purposes and, to the
extent any Mortgaged Property is not, describing in reasonable detail the circumstances
around that property and its failure to be actively utilized and (7) calculations of (x) the
aggregate Net Operating Income of all Mortgaged Properties and (y) the Aggregate Capped
Value.

     (c) Promptly following any request therefor, such other information regarding the operations,
business affairs, financial condition and Collateral of the Loan Parties or any of their
Subsidiaries, or compliance with the terms of this Agreement or any other Loan Document, as the
Administrative Agent may reasonably request including without limitation, tax returns, title
reports, insurance certificates and environmental site assessments.

     Section 5.2 Notices of Material Events.

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     (a) The Company will furnish to the Administrative Agent and each Lender prompt written notice
of the following:

     (i) the occurrence of any Default;

     (ii) the filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting a Loan Party or any Affiliate
thereof that, if adversely determined, could reasonably be expected to result to a Material
Adverse Effect;

     (iii) the occurrence of any ERISA Event that, alone or together with any other ERISA
Events that have occurred, could reasonably be expected to result in liability of the Loan
Parties and their Subsidiaries in an aggregate amount exceeding $5,000,000;

     (iv) the receipt of any notice or the occurrence of any event that could reasonably be
expected to result in an Environmental Liability of the Loan Parties and their Subsidiaries
in an aggregate amount exceeding $5,000,000;

     (v) any Lien (other than Permitted Encumbrances) or claim made or asserted against any
of the Collateral;

     (vi) any material loss, damage or destruction to any of the Collateral, whether or not
covered by insurance; and

     (vii) any other development that results in, or could reasonably be expected to result
in, a Material Adverse Effect.

     (b) The Company shall deliver to the Administrative Agent and the Lenders written notice of
each of the following events affecting the Company or any of its Subsidiaries not less than five
(5) Business Days prior to the occurrence thereof: (i) a sale, transfer or other disposition of any
Unencumbered Eligible Project (or a Subsidiary that owns any Unencumbered Eligible Project) for
consideration in excess of $30,000,000, and (ii) the grant of a Lien securing obligations greater
than $30,000,000 with respect to any Unencumbered Eligible Project. In addition, simultaneously
with delivery of any such notice, the Company shall deliver to the Administrative Agent a
certificate of a Financial Officer certifying that the Company is in compliance with this Agreement
and the other Loan Documents both on a historical basis and on a pro forma basis, exclusive of the
property sold, transferred or encumbered and inclusive of the indebtedness to be incurred. To the
extent such proposed transaction would result in a failure to comply with the financial covenants
set forth herein, an amount equal to that which would be required to reduce the Obligations so that
the Company will be in compliance with the covenants set forth herein upon the consummation of the
contemplated transaction shall be paid by the Borrowers and applied to prepay the Obligations.

     Each notice delivered under this Section shall be accompanied by a statement of a Financial
Officer or other executive officer of the Company setting forth the details of the event or
development requiring such notice and any action taken or proposed to be taken with respect
thereto.

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     Section 5.3 Existence; Conduct of Business. Each Loan Party will, and will cause each of its
Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in full
force and effect its legal existence and the rights, licenses, permits, privileges and franchises
material to the conduct of its business; provided that the forgoing shall not prohibit any merger,
consolidation, liquidation or dissolution permitted under Section 6.3.

     Section 5.4 Payment of Obligations. Each Loan Party will, and will cause each of its Subsidiaries to,
pay its obligations, including Taxes, before the same shall become delinquent or in default, except
where (a) the validity or amount thereof is being contested in good faith by appropriate
proceedings, (b) such Loan Party or such Subsidiary has set aside on its books adequate reserves
with respect thereto in accordance with GAAP and (c) the failure to make payment pending such
contest (x) could not reasonably be expected to result in a Material Adverse Effect and (y) will
not result in the imposition of a Lien on any of the Collateral other than a Permitted Encumbrance.

     Section 5.5 Maintenance of Properties; Insurance.

     (a) Each Loan Party will, and will cause each of its Subsidiaries to, keep and maintain (or
cause to be kept and maintained) all property material to the conduct of its business in good
working order and condition, ordinary wear and tear excepted.

     (b) Each Loan Party will, and will cause each of its Subsidiaries to, maintain, or will cause
tenants of Projects to maintain, with financially sound and reputable insurers, insurance with
respect to its properties and its business against general liability, property casualty and such
casualties and contingencies as shall be commercially reasonable and in accordance with the
customary and general practices of businesses having similar operations and real estate portfolios
in similar geographic areas and in amounts, containing such terms, in such forms and for such
periods as may be reasonable and prudent for such businesses, including without limitation,
insurance policies and programs sufficient to cover (i) the replacement value of the improvements
at Projects owned by the Loan Parties and their Subsidiaries (less commercially reasonable
deductible amounts) and (ii) liability risks associated with such ownership (less commercially
reasonable deductible amounts).

     (c) Each Loan Party will comply with the insurance requirements set forth in the Mortgages to
which it is a party.

     Section 5.6 Books and Records; Inspection Rights. Each Loan Party will, and will cause each of its
Subsidiaries to, keep proper books of record and account in which full, true and correct entries
are made of all dealings and transactions in relation to its business and activities. Each Loan
Party will, and will cause each of its Subsidiaries to, permit any representatives designated by
the Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect its
properties, to examine and make extracts from its books and records, and to discuss its affairs,
finances, condition and properties with its officers and independent accountants, all at such
reasonable times and as often as reasonably requested.

     Section 5.7 Compliance with Laws. Each Loan Party will, and will cause each of its Subsidiaries to,
comply with all laws, rules, regulations and orders of any Governmental

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Authority applicable to it or its property, including all Environmental Laws, except where the
failure to do so, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect.

     Section 5.8 Use of Proceeds. The proceeds of the Loans will be used solely to finance in part the
acquisition of CPA®:14 by the CPA Global REIT by funding the cash elections made by CPA®:14
shareholders pursuant to the Merger, to repay certain property level indebtedness and for general
corporate purposes, in each case not in contravention of any applicable laws or of any Loan
Document. No Borrower is engaged nor will any Borrower engage, principally or as one of its
important activities, in the business of purchasing or carrying margin stock (within the meaning of
Regulation U issued by the Board), or extending credit for the purpose of purchasing or carrying
margin stock.

     Section 5.9 Distributions in the Ordinary Course. In the ordinary course of business the Company
causes all of its Subsidiaries to make transfers of net cash and cash equivalents upstream to the
Company, and the Company shall continue to follow such ordinary course of business. The Company
shall not make net transfers of cash and cash equivalents downstream to its Subsidiaries except in
the ordinary course of business consistent with past practice.

     Section 5.10 ERISA Compliance. The Loan Parties shall, and shall cause each of their Subsidiaries and
ERISA Affiliates to, establish, maintain and operate all Plans to comply in all material respects
with the provisions of ERISA, the Code, all other applicable laws, and the regulations and
interpretations thereunder and the respective requirements of the governing documents for such
Plans.

     Section 5.11 Company Status. The Company shall at all times (a) remain publicly traded with securities
listed on the New York Stock Exchange and (b) except in the case of W. P. Carey International LLC
or as the result of a disposition otherwise permitted under this Agreement, retain 100% ownership
of all Borrowers and all borrowers under the LLC Credit Agreement.

     Section 5.12 Further Assurances. The Loan Parties shall, promptly upon request by the Administrative
Agent, or any Lender through the Administrative Agent, (a) correct any material defect or error
that may be discovered in any Loan Document or in the execution, acknowledgment, filing or
recordation thereof, and (b) do, execute, acknowledge, deliver, record, re-record, file, re-file,
register and re-register any and all such further acts, deeds, certificates, assurances and other
instruments as the Administrative Agent, or any Lender through the Administrative Agent, may
reasonably require from time to time in order to (i) carry out more effectively the purposes of the
Loan Documents, (ii) to the fullest extent permitted by applicable law, subject any Loan Party’s or
any of its Subsidiaries’ properties, assets, rights or interests to the Liens now or hereafter
intended to be covered by any of the Collateral Documents, (iii) perfect and maintain the validity,
effectiveness and priority of any of the Collateral Documents and any of the Liens intended to be
created thereunder and (iv) assure, convey, grant, assign, transfer, preserve, protect and confirm
more effectively unto the Administrative Agent and the Secured Parties the rights granted or now or
hereafter intended to be granted to them under any Loan Document or under any other instrument
executed in connection with any Loan

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Document to which any Loan Party or any of its Subsidiaries is or is to be a party, and cause each of its
Subsidiaries to do so.

     Section 5.13 Additional Deliveries. Following the occurrence of an Event of Default, the Loan Parties,
upon request by the Administrative Agent (or a Lender through the Administrative Agent), shall
deliver to the Administrative Agent (or as otherwise directed by the Administrative Agent) within
45 days after such request (or such longer period as the Administrative Agent may agree):

     (a) American Land Title Association/American Congress on Surveying and Mapping form surveys,
for which all necessary fees (where applicable) have been paid, and dated no more than 30 days
before the date of the Administrative Agent’s request, certified to the Administrative Agent and
the issuer of the Mortgage Policies in a manner satisfactory to the Administrative Agent by a land
surveyor duly registered and licensed in the States in which the property described in such surveys
is located and acceptable to the Administrative Agent, showing all buildings and other
improvements, any off-site improvements, the location of any easements, parking spaces, rights of
way, building set-back lines and other dimensional regulations and the absence of encroachments,
either by such improvements or on to such property, and other defects, other than encroachments and
other defects acceptable to the Administrative Agent and in form and substance so as to allow the
Mortgage Policies to be issued with so-called survey dependent endorsements and excluding standard
exceptions;

     (b) estoppels from each of the tenants under leases affecting the improvements located on each
of the Mortgaged Properties, in form and substance and reciting facts reasonably acceptable to the
Administrative Agent;

     (c) Subordination, Non-Disturbance and Attornment Agreements from each of the tenants under
leases affecting the improvements located on each of the Mortgaged Properties, in form and
substance reasonably acceptable to the Administrative Agent; provided, however, that a
Subordination, Non-Disturbance and Attornment Agreement shall not be required from any tenant under
a lease which by its terms is subordinate to the lien of the Mortgage, as confirmed by the
respective Mortgage Policy;

     (d) property zoning reports issued by a company reasonably acceptable to Administrative Agent,
detailing the zoning classification of each of the Mortgaged Properties and confirming the current
use of each such Mortgaged Properties as being in compliance with all applicable zoning laws, rules
and regulations;

     (e) copies of unconditional, permanent Certificates of Occupancy for each of the improvements
located on each of the Mortgaged Properties (and, if applicable for each tenant space within such
improvements) issued by the governmental entity having jurisdiction; and

     (f) such other information regarding the Mortgaged Properties as the Administrative Agent or
any Lender may reasonably request.

     Section 5.14 Information Regarding Collateral. Each Loan Party agrees that it will not effect any
change (i) in its legal name, (ii) in the location of its chief executive office, (iii) in its
identity or organizational structure, (iv) in its Federal Taxpayer Identification Number (or

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equivalent thereof) or organizational identification number, if any, or (v) in its jurisdiction of
organization (in each case, including by merging with or into any other entity, reorganizing,
dissolving, liquidating, reorganizing or organizing in any other jurisdiction), until (A) it shall
have given the Administrative Agent not less than ten Business Days’ prior written notice (in an
Officer’s Certificate), or such lesser notice period agreed to by the Administrative Agent, of its
intention so to do, clearly describing such change and providing such other information in
connection therewith as the Administrative Agent may reasonably request and (B) it shall have taken
all action reasonably satisfactory to the Administrative Agent to maintain the perfection and
priority of the security interest of the Administrative Agent for the benefit of the Secured
Parties in the Collateral, if applicable. Each Loan Party agrees to promptly provide the
Administrative Agent with certified organization documents reflecting any of the changes described
in the preceding sentence.

     Section 5.15 Appraisals.

     (a) On or prior to the Closing Date, the Loan Parties will order an appraisal on the Mortgaged
Property located at 3033 Science Park Road, San Diego, CA 92121 (the “Titan Property”), and the
Loan Parties agree that if the appraised value of such Mortgaged Property as set forth in such
appraisal is less than $33,400,000, at the request of the Administrative Agent, additional Real
Properties of the Loan Parties and their Subsidiaries shall be identified and approved by the
Administrative Agent to be subject to Liens in favor of the Secured Parties such that the aggregate
appraised value of the Titan Property and such additional Real Properties is at least $33,400,000.

     (b) If the Administrative Agent is required by law or regulation to have appraisals on any of
the Mortgaged Properties, and otherwise only following the occurrence of a Default, the Loan
Parties shall deliver to the Administrative Agent, as soon as possible following a request by the
Administrative Agent or the Required Lenders (utilizing commercially reasonable efforts in doing
so), an appraisal for any or all of the Mortgaged Properties, which appraisal shall, if requested
by the Administrative Agent, comply with the requirements of the Federal Financial Institutions
Reform, Recovery and Enforcement Act of 1989 and otherwise be in form and substance reasonably
satisfactory to the Administrative Agent.

     Section 5.16 Post-Closing. Promptly following the Closing Date, the Loan Parties will request an
estoppel, in form and substance reasonably satisfactory to the Administrative Agent, from the
tenants on the leases with respect to the Mortgaged Properties located at 1308 South Lone Hill
Avenue, Glendora, CA 91773 and 28200 Wick Road, Romulus, MI 48174 confirming that the cap on
Indebtedness set forth in such leases is no longer in effect. In the event any such estoppels are
received, the Loan Parties agree that the Mortgage with respect to the related Mortgaged Property
shall be amended to remove the cap on Indebtedness set forth in such Mortgage.

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ARTICLE VI

NEGATIVE COVENANTS

     Until the Commitments have expired or terminated and the principal of and interest on each
Loan and all fees payable hereunder have been paid in full, the Loan Parties covenant and agree
with the Lenders that:

     Section 6.1 Financial Covenants.

     (a) Maximum Leverage. As of the last day of each fiscal quarter of the Company, Total
Outstanding Indebtedness shall not exceed 60% of Total Value.

     (b) Maximum Secured Debt. As of the last day of each fiscal quarter of the Company,
the sum of (i) Total Secured Outstanding Indebtedness plus (ii) Indebtedness of Subsidiaries that
is permitted under clause (D) of Section 6.1(f)(ii) shall not exceed 50% of Total Value.

     (c) Minimum Combined Equity Value. The Combined Equity Value as of the last day of
each fiscal quarter of the Company shall not be less than the sum of (i) $550,000,000 plus (ii) an
amount equal to 85% of the Fair Market Value of all Net Offering Proceeds received by the Company
after June 29, 2007.

     (d) Minimum Fixed Charge Coverage Ratio. As of the last day of each fiscal quarter of
the Company, the ratio of (i) Adjusted Total EBITDA for such fiscal quarter to (ii) Fixed Charges
for such fiscal quarter shall not be less than 1.75 to 1.0.

     (e) Maximum Dividend Payout. The Company shall not make any Restricted Payment during
any fiscal quarter, which, when added to all Restricted Payments made during such fiscal quarter
and the three immediately preceding fiscal quarters, exceeds ninety (90%) of Adjusted Total EBITDA
for the four preceding fiscal quarters; provided that the Company shall not make any Restricted
Payments during the existence and continuation of an Event of Default. For purposes of this
provision, “Restricted Payment” means (i) any dividend or other distribution on any equity
securities of the Company (except dividends payable solely in equity securities of the Company or
in rights to subscribe for or purchase equity securities of the Company) and (ii) payments in
excess of $10,000,000 a year on account of the purchase, redemption, retirement or acquisition of
(A) any equity securities of the Company or (B) any option, warrant or other right to acquire
equity securities of the Company.

     (f) Recourse Indebtedness.

     (i) The Company will not create, incur, assume or permit to exist any Secured
Indebtedness other than (A) Nonrecourse Indebtedness and (B) Indebtedness that is recourse
to the Company in an aggregate amount not to exceed the greater of $50,000,000 and 5% of
Total Value outstanding at any time.

     (ii) The Company will not permit any Subsidiary to, and no Subsidiary shall, create,
incur, assume or permit to exist any Indebtedness other than (A) Indebtedness

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under the Loan Documents, (B) Indebtedness of any Subsidiary to the Company, (C)
Nonrecourse Indebtedness, (D) Indebtedness of a Subsidiary (other than a Borrower or a
borrower under the LLC Credit Agreement) to a Subsidiary (other than a Borrower or a
borrower under the LLC Credit Agreement), (E) Indebtedness that is recourse to such
Subsidiary, but only if such Subsidiary is not a Borrower or a borrower under the LLC Credit
Agreement, was formed solely to own or make a loan in respect of a particular Project, and
does not engage in any business other than the ownership or financing of such Project and
(F) Indebtedness under the LLC Credit Agreement.

     Section 6.2 Liens. The Loan Parties will not, and will not permit any Subsidiary to, create, incur,
assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it,
or assign or sell any income or revenues (including accounts receivable) or rights in respect of
any thereof, except:

     (a) Permitted Encumbrances;

     (b) Liens with respect to Capital Leases of equipment entered into in the ordinary course of
business of the Loan Parties;

     (c) Liens securing Secured Indebtedness, the incurrence of which is not prohibited by this
Article VI; and

     (d) Liens permitted by the terms of the Collateral Documents.

     Section 6.3 Fundamental Changes.

     (a) The Loan Parties will not, and will not permit any Subsidiary to, merge into or
consolidate with any other Person, or permit any other Person to merge into or consolidate with it,
or sell, transfer, lease or otherwise dispose of (in one transaction or in a series of
transactions) any of the Collateral or all or substantially all of its assets, or all or
substantially all of the stock or other equity interests of any of its Subsidiaries (in each case,
whether now owned or hereafter acquired), or liquidate or dissolve, except (i) if at the time
thereof and immediately after giving effect thereto no Default shall have occurred and be
continuing, any Person may merge into a Loan Party or a Subsidiary in a transaction in which such
Loan Party or such Subsidiary is the surviving corporation, (ii) any Loan Party or any Subsidiary
may sell, lease, transfer or otherwise dispose of its assets to another Loan Party or another
Subsidiary, subject to the requirements of Section 5.2(b), (iii) any Subsidiary (other than
a Borrower) may liquidate or dissolve if the Company determines in good faith that such liquidation
or dissolution is in the best interests of the Company and is not materially disadvantageous to the
Lenders, and (iv) if at the time thereof and immediately after giving effect thereto no Default
shall have occurred and be continuing the sale of stock of a Subsidiary (other than a Borrower),
subject to the requirements of Section 5.2(b); provided that at all times the
Mortgaged Properties shall remain subject to Mortgages for the benefit of the Secured Parties. For
purposes of clarification, nothing in this Section 6.3 shall prevent the issuance,
transfer, conversion or repurchase of limited liability interests in the Company.

     (b) The Loan Parties will not, and will not permit any of their Subsidiaries to, engage to any
material extent in any business other than businesses of the type conducted by the Loan

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Parties and their Subsidiaries on the date of execution of this Agreement and businesses
reasonably related thereto.

     (c) The Loan Parties will not, and will not permit any Subsidiary to, at any time cause or
permit its certificate of formation, limited liability company agreement, certificate of limited
partnership, partnership agreement, articles of incorporation, by-laws, or other charter documents,
as the case may be, to be modified, amended or supplemented in any respect whatsoever, without, in
each case, the express prior written consent or approval of the Administrative Agent, if such
changes would materially adversely affect the rights of the Administrative Agent or the Lenders
hereunder or under any of the other Loan Documents; provided that if such prior consent or approval
is not required, such Loan Party shall nonetheless notify the Administrative Agent in writing
promptly after such event.

     Section 6.4 Hedging Agreements. The Loan Parties will not, and will not permit any of its Subsidiaries
to, enter into any Hedging Agreement, other than Hedging Agreements entered into in the ordinary
course of business to hedge or mitigate risks to which a Loan Party or any Subsidiary is exposed in
the conduct of its business or the management of its liabilities.

     Section 6.5 Transactions with Affiliates. Neither the Loan Parties nor any of their Subsidiaries shall
directly or indirectly enter into or permit to exist any transaction (including, without
limitation, the purchase, sale, lease or exchange of any property or the rendering of any service)
with any holder or holders of more than 5% of any class of equity securities of the Company, or
with any Affiliate of the Company which is not its Subsidiary, on terms that are less favorable to
the Company or any of its Subsidiaries, as applicable, than those that might be obtained in an
arm’s length transaction at the time from Persons who are not such a holder or Affiliate. Nothing
contained in this Section 6.5 shall prohibit (a) increases in compensation and benefits for
officers and employees of the Loan Parties or any of their Subsidiaries which are customary in the
industry or consistent with the past business practice of such Loan Party or such Subsidiary,
provided that no Default has occurred and is continuing; (b) payment of customary partners’
indemnities; (c) performance of any obligations arising under the Loan Documents; and (d) any
Restricted Payment permitted by Section 6.1(e).

ARTICLE VII

EVENTS OF DEFAULT

     Section 7.1 Events of Default. Any of the following shall constitute an Event of Default:

     (a) a Loan Party shall fail to pay any principal of any Loan when and as the same shall become
due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or
otherwise;

     (b) a Loan Party shall fail to pay any interest on any Loan or any fee or any other amount
(other than an amount referred to in clause (a) of this Article) payable under this Agreement, when
and as the same shall become due and payable, and such failure shall continue unremedied for a
period of five Business Days;

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     (c) any representation or warranty made or deemed made by or on behalf of a Loan Party or any
Subsidiary in or in connection with this Agreement or any other Loan Document or any amendment or
modification hereof or thereof or waiver hereunder or thereunder, or in any report, certificate,
financial statement or other document furnished pursuant to or in connection with this Agreement or
any other Loan Document or any amendment or modification hereof or thereof or waiver hereunder or
thereunder, shall prove to have been incorrect when made or deemed made;

     (d) a Loan Party shall fail to observe or perform any covenant, condition or agreement
contained in Sections 5.2, 5.3 (with respect to the Company or any Borrower’s existence),
5.5(b), 5.8, 5.11(a) or 5.13 or in Article VI or any of the Loan Parties shall fail
to observe or perform any covenant, condition or agreement contained in or any Collateral Document;

     (e) a Loan Party shall fail to observe or perform any covenant, condition or agreement
contained in this Agreement or any other Loan Document (other than those specified in clause (a),
(b) or (d) of this Section 7.1), and such failure shall continue unremedied for a period of
30 days after notice thereof from the Administrative Agent to the Company (which notice will be
given at the request of any Lender);

     (f) a Loan Party or any Subsidiary shall fail to make any payment (whether of principal or
interest and regardless of amount) in respect of any Material Indebtedness, when and as the same
shall become due and payable;

     (g) any event or condition occurs that results in any Material Indebtedness becoming due prior
to its scheduled maturity or that enables or permits (with or without the giving of notice, the
lapse of time or both) the holder or holders of any Material Indebtedness or any trustee or agent
on its or their behalf to cause any Material Indebtedness to become due, or to require the
prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided
that this clause (g) shall not apply to Secured Indebtedness that becomes due as a result of the
voluntary sale or transfer of the property or assets securing such Indebtedness;

     (h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed
seeking (i) liquidation, reorganization or other relief in respect of a Loan Party or any Material
Subsidiary or any of their debts, or of a substantial part of any of their assets, under any
Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in
effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for a Loan Party or any Material Subsidiary or for a substantial part of any of
their assets, and, in any such case, such proceeding or petition shall continue undismissed for 60
days or an order or decree approving or ordering any of the foregoing shall be entered;

     (i) a Loan Party or any Material Subsidiary shall (i) voluntarily commence any proceeding or
file any petition seeking liquidation, reorganization or other relief under any Federal, state or
foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii)
consent to the institution of, or fail to contest in a timely and appropriate manner, any
proceeding or petition described in clause (h) of this Article, (iii) apply for or consent to the
appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for a

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Loan Party or any Material Subsidiary or for a substantial part of its assets, (iv) file an
answer admitting the material allegations of a petition filed against it in any such proceeding,
(v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose
of effecting any of the foregoing;

     (j) a Loan Party or any Material Subsidiary shall become unable, admit in writing its
inability or fail generally to pay its debts as they become due;

     (k) one or more judgments for the payment of money in an aggregate amount in excess of
$10,000,000 (excluding judgments entered in respect of Nonrecourse Indebtedness and judgments
entered in respect of Indebtedness permitted under clause (E) of Section 6.1(f)(ii)) shall
be rendered against a Loan Party or any Subsidiary or any combination thereof and the same shall
remain undischarged for a period of 30 consecutive days during which execution shall not be
effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy
upon any assets of the Company or any Subsidiary to enforce any such judgment;

     (l) an ERISA Event shall have occurred that, when taken together with all other ERISA Events
that have occurred, could reasonably be expected to result in liability of the Company and its
Subsidiaries in an aggregate amount exceeding $5,000,000;

     (m) a Change in Control shall occur;

     (n) any provision of any Loan Document, at any time after its execution and delivery and for
any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all
the Obligations, ceases to be in full force and effect; or any Loan Party or any other Person
contests in writing in any manner the validity or enforceability of any provision of any Loan
Document; or any Loan Party denies in writing that it has any or further liability or obligation
under any provision of any Loan Document, or purports to revoke, terminate or rescind any provision
of any Loan Document; or

     (o) any Collateral Document, after delivery thereof, shall for any reason (other than pursuant
to the terms thereof) cease to create a valid and perfected first priority Lien (subject to
Permitted Encumbrances) on the Collateral purported to be covered thereby;

     then, and in every such event (other than an event with respect to any Loan Party described in
clause (h) or (i) of this Section 7.1), and at any time thereafter during the continuance
of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by
notice to the Company, take one or more of the following actions, at the same or different times:
(i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, (ii)
declare the Loans then outstanding to be due and payable in whole (or in part, in which case any
principal not so declared to be due and payable may thereafter be declared to be due and payable),
and thereupon the principal of the Loans so declared to be due and payable, together with accrued
interest thereon and all fees and other obligations of the Loan Parties accrued hereunder, shall
become due and payable immediately, without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by the Loan Parties, and (iii) enforce any rights and exercise
any rights and remedies available under any Loan Document or otherwise; and in the case of any
event with respect to any Loan Party described in

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clause (h) or (i) of this Section 7.1, the Commitments shall automatically terminate
and the principal of the Loans then outstanding, together with accrued interest thereon and all
fees and other obligations of the Loan Parties accrued hereunder, shall automatically become due
and payable, without presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Loan Parties.

     Section 7.2 Application of Funds. After the exercise of remedies provided for in Section 7.1
(or after the Loans have automatically become immediately due and payable as set forth above), any
amounts received on account of the Obligations shall be applied in the following order:

     First, to payment of that portion of the Obligations constituting fees,
indemnities, expenses and other amounts (including fees, charges and disbursements of
counsel to the Administrative Agent and amounts payable under Article II) payable to
the Administrative Agent in its capacity as such;

     Second, to payment of that portion of the Obligations constituting fees,
indemnities and other amounts (other than principal and interest) payable to the Lenders
(including fees, charges and disbursements of counsel to the respective Lenders and amounts
payable under Article II), ratably among them in proportion to the respective
amounts described in this clause Second payable to them;

     Third, to payment of that portion of the Obligations constituting accrued and
unpaid interest on the Loans and other Obligations, ratably among the Lenders in proportion
to the respective amounts described in this clause Third payable to them;

     Fourth, to payment of that portion of the Obligations constituting unpaid
principal of the Loans, ratably among the Lenders in proportion to the respective amounts
described in this clause Fourth held by them; and

     Last, the balance, if any, after all of the Obligations have been indefeasibly
paid in full, to the Company or as otherwise required by law.

ARTICLE VIII

THE AGENT

     Section 8.1 Appointment. Each of the Lenders hereby irrevocably appoints the Administrative Agent as
its agent and authorizes the Administrative Agent to take such actions on its behalf and to
exercise such powers as are delegated to the Administrative Agent by the terms hereof and of the
other Loan Documents, together with such actions and powers as are reasonably incidental thereto.

     Section 8.2 Administrative Agent’s Right as Lender. The bank serving as the Administrative Agent
hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and
may exercise the same as though it were not the Administrative Agent and such bank and its
Affiliates may accept deposits from, lend money to and generally

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engage in any kind of business with the Company or any Subsidiary or other Affiliate thereof as if
it were not the Administrative Agent hereunder.

     Section 8.3 Exculpatory Provisions. The Administrative Agent shall not have any duties or obligations
except those expressly set forth herein or in the other Loan Documents to which the Administrative
Agent is a party. Without limiting the generality of the foregoing, (a) the Administrative Agent
shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby or by the other Loan Documents to which the Administrative Agent is a
party that the Administrative Agent is required to exercise in writing by the Required Lenders (or
such other number or percentage of the Lenders as shall be necessary under the circumstances as
provided in Section 9.2), and (c) except as expressly set forth herein or in the other Loan
Documents to which the Administrative Agent is a party, the Administrative Agent shall not have any
duty to disclose, and shall not be liable for the failure to disclose, any information relating to
the Company or any of its Subsidiaries that is communicated to or obtained by the bank serving as
Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent shall not
be liable for any action taken or not taken by it with the consent or at the request of the
Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 9.2) or in the absence of its own gross negligence or
willful misconduct. The Administrative Agent shall be deemed not to have knowledge of any Default
(other than a Default existing as a result of a failure to pay principal, interest or fees
hereunder when due) unless and until written notice thereof is given to the Administrative Agent by
the Company or a Lender, and the Administrative Agent shall not be responsible for or have any duty
to ascertain or inquire into (i) any statement, warranty or representation made in or in connection
with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or
other document delivered hereunder or under any other Loan Document or in connection herewith or
therewith, (iii) the performance or observance of any of the covenants, agreements or other terms
or conditions set forth herein or in any other Loan Document, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement,
instrument or document, or the creation, perfection or priority of any Lien purported to be created
by any of the Collateral Documents, (v) the value or the sufficiency of any Collateral, or (vi) the
satisfaction of any condition set forth in Article IV or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the Administrative Agent.

     Section 8.4 Reliance by Agents. The Administrative Agent shall be entitled to rely upon, and shall not
incur any liability for relying upon, any notice, request, certificate, consent, statement,
instrument, document or other writing believed by it to be genuine and to have been signed or sent
by the proper Person. The Administrative Agent also may rely upon any statement made to it orally
or by telephone and believed by it to be made by the proper Person, and shall not incur any
liability for relying thereon. The Administrative Agent may consult with legal counsel,
independent accountants and other experts selected by it, and shall not be liable for any action
taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

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     Section 8.5 Sub-Agents. The Administrative Agent may perform any and all its duties and exercise its
rights and powers by or through any one or more sub-agents appointed by it. The Administrative
Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the preceding paragraphs
shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any
such sub-agent of such Related Parties, and shall apply to their respective activities in
connection with the syndication of the credit facilities provided for herein as well as activities
as Administrative Agent.

     Section 8.6 Resignation/Successor Administrative Agent. Subject to the appointment and acceptance of a
successor Administrative Agent, as provided in this paragraph, the Administrative Agent may resign
at any time by notifying the Lenders and the Company. Upon any such resignation, the Required
Lenders shall have the right, in consultation with the Company (so long as no Event of Default has
occurred and is continuing), to appoint a successor. If no successor shall have been so appointed
by the Required Lenders and shall have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may,
on behalf of the Lenders, appoint a successor Administrative Agent which shall be a bank with an
office in New York, New York, or an Affiliate of any such bank; provided that such successor
Administrative Agent shall have total assets of not less than $10,000,000,000; and provided further
that if the Administrative Agent shall notify the Company and the Lenders that no qualifying Person
has accepted such appointment, then such resignation shall nonetheless become effective in
accordance with such notice and thereafter (i) the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder and under the other Loan Documents and (ii)
all payments, communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender directly, until such time as the
Required Lenders appoint and the Company consents to a successor Administrative Agent as provided
for above in this Section. Upon the acceptance of its appointment as Administrative Agent
hereunder by a successor, such successor shall succeed to and become vested with all the rights,
powers, privileges and duties of the retiring Administrative Agent and the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder and under the other Loan
Documents. The fees payable by the Company to a successor Administrative Agent shall be the same
as those payable to its predecessor unless otherwise agreed between the Company and such successor.
After the resignation of the Administrative Agent, the provisions of this Article and Section
9.3 shall continue in effect for the benefit of such retiring Administrative Agent, its
sub-agents and their respective Related Parties in respect of any actions taken or omitted to be
taken by any of them, while it was acting as Administrative Agent.

     Section 8.7 Non-Reliance on Administrative Agent or Other Lenders. Each Lender acknowledges that it
has, independently and without reliance upon the Administrative Agent or any other Lender and based
on such documents and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it will, independently
and without reliance upon the Administrative Agent or any other Lender and based on such documents
and information as it shall from time to time deem appropriate, continue to make its own decisions
in taking or not taking action under or based upon this Agreement, any other Loan Document or any
related agreement or any document furnished hereunder or thereunder.

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     Section 8.8 Collateral and Guaranty Matters. The Lenders irrevocably authorize the Administrative
Agent at its option and in its discretion, to transfer or release any Lien on any Collateral (i)
upon the payment and satisfaction in full of all Obligations (other than contingent indemnification
obligations), (ii) that is sold or to be sold as part of or in connection with any sale permitted
hereunder and under the Collateral Documents, (iii) subject to Section 9.2, if approved,
authorized or ratified in writing by the Required Lenders, or (iv) after foreclosure or other
acquisition of title if approved by the Required Lenders.

     Upon request by the Administrative Agent at any time, the Lenders will confirm in writing the
Administrative Agent’s authority to release or subordinate its interest in particular types or
items of Property pursuant to this Section 8.8.

ARTICLE IX

MISCELLANEOUS

     Section 9.1 Notices.

     (a) Notices. Except in the case of notices and other communications expressly
permitted to be given by telephone, all notices and other communications provided for herein shall
be in writing and shall be delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

     (i) if to the Company or any other Loan Party: W.P. Carey & Co. LLC, 50 Rockefeller
Plaza, New York, New York 10020, Attention of Mark DeCesaris, Chief Financial Officer
(Telecopy No. 212-492-8922);

     (ii) if to the Administrative Agent:

     (A) for payments and Requests for Credit Extensions:
Bank of America, N.A., Large Corporate Loan Services, 901 Main Street,
TX1-492-14-04, Dallas, Texas 75202-3714, Attention of Jennifer A. Ollek
(Telephone, 214-209-2642, Fax, 214-290-8374, Email,
Jennifer.a.ollek@baml.com);

     (B) for other notices as Administrative Agent:
Bank of America, N.A. 135 S. LaSalle St., IL4-135-06-11, Chicago, IL
60603, Attention of Michael Kauffman, (Telephone, 312-828-6723, Fax,
312-992-9767, Email, michael.j.kauffman@baml.com); and

     (iii) if to any Lender, to it at its address (or telecopy number) set forth in its
Administrative Questionnaire or as otherwise communicated in writing to the Company and the
Administrative Agent.

     All notices and other communications given to any party hereto in accordance with the
provisions of this Agreement shall be deemed to have been given on the date of receipt.

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     (b) Electronic Communications. Notices and other communications to the Lenders
hereunder may be delivered or furnished by electronic communication (including e-mail and Internet
or intranet websites) pursuant to procedures approved by the Administrative Agent; 
provided that the foregoing shall not apply to notices to any Lender pursuant to Article
II if such Lender has notified the Administrative Agent that it is incapable of receiving
notices under such Article by electronic communication. The Administrative Agent, the Company or
any Loan Party may, in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it; provided that
approval of such procedures may be limited to particular notices or communications.

     Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement
from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the next business day
for the recipient, and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

     (c) Communication through Internet. In no event shall the Administrative Agent or any
of its Related Parties (collectively, the “Agent Parties”) have any liability to any Loan
Party, any Lender or any other Person for losses, claims, damages, liabilities or expenses of any
kind (whether in tort, contract or otherwise) arising out of any Loan Party’s or the Administrative
Agent’s transmission of information through the Internet, except to the extent that such losses,
claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a
final and nonappealable judgment to have resulted from the gross negligence or willful misconduct
of such Agent Party; provided, however, that in no event shall any Agent Party have
any liability to any Loan Party, any Lender or any other Person for indirect, special, incidental,
consequential or punitive damages (as opposed to direct or actual damages).

     (d) Change of Address, Etc. Each of the Loan Parties and the Administrative Agent may
change its address, telecopier or telephone number for notices and other communications hereunder
by notice to the other parties hereto. Each Lender may change its address, telecopier or telephone
number for notices and other communications hereunder by notice to the Company and the
Administrative Agent. In addition, each Lender agrees to notify the Administrative Agent from time
to time to ensure that the Administrative Agent has on record (i) an effective address, contact
name, telephone number, telecopier number and electronic mail address to which notices and other
communications may be sent and (ii) accurate wire instructions for such Lender.

     (e) Reliance by Administrative Agent and Lenders.The Administrative Agent and the
Lenders shall be entitled to rely and act upon any notices (including telephonic Borrowing
Requests) purportedly given by or on behalf of the Company even if (i) such notices were not made
in a manner specified herein, were incomplete or were not preceded or followed by any other form of
notice specified herein, or (ii) the terms thereof, as understood by the recipient,

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varied from any confirmation thereof. All telephonic notices to and other telephonic
communications with the Administrative Agent may be recorded by the Administrative Agent, and each
of the parties hereto hereby consents to such recording.

     Section 9.2 Waivers; Amendments.

     (a) No failure or delay by the Administrative Agent or any Lender in exercising any right or
power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of the Administrative Agent and the
Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any
rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or
any other Loan Documents or consent to any departure by a Loan Party therefrom shall in any event
be effective unless the same shall be permitted by paragraph (b) of this Section 9.2, and
then such waiver or consent shall be effective only in the specific instance and for the purpose
for which given. Without limiting the generality of the foregoing, the making of a Loan shall not
be construed as a waiver of any Default, regardless of whether the Administrative Agent or any
Lender may have had notice or knowledge of such Default at the time.

     (b) Neither this Agreement or any other Loan Document nor any provision hereof or thereof may
be waived, amended or modified except pursuant to an agreement or agreements in writing entered
into by the Company and the Required Lenders or by the Loan Parties party thereto and the
Administrative Agent with the consent of the Required Lenders; provided that no such agreement
shall (i) change the Commitment of any Lender without the written consent of such Lender (other
than pursuant to an assignment under Section 9.4 or a reduction of Commitments under
Section 2.9), (ii) reduce the principal amount of any Loan or reduce the rate of interest
thereon, or reduce any fees payable hereunder, without the written consent of each Lender affected
thereby, (iii) postpone the scheduled date of payment of the principal amount of any Loan, or any
interest thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse any such
payment, or postpone the scheduled date of expiration of any Commitment, without the written
consent of each Lender affected thereby, (iv) change Section 2.18(b) in a manner that would
alter the pro rata sharing of payments required thereby, without the written consent of each
Lender, (v) change any of the provisions of this Section or the definition of “Required Lenders” or
any other provision hereof specifying the number or percentage of Lenders required to waive, amend
or modify any rights hereunder or make any determination or grant any consent hereunder, without
the written consent of each Lender or (vi) release the Guarantor from its obligations under
Article X or release any or all of the Collateral, except, in each case, as set forth in
Section 8.8; provided further that no such agreement shall amend, modify or otherwise
affect the rights or duties of the Administrative Agent hereunder or under any other Loan Document
without, in addition, the prior written consent of the Administrative Agent; provided, further,
Schedule 1.1(a) may be amended by the Administrative Agent without the consent of the Required
Lenders or any Loan Party solely to update the information contained therein; provided, even,
further that any Loan Document may be amended from time to time by the Administrative Agent alone
to add a Subsidiary of the Guarantor as a borrower or grantor of Liens under a Loan Document.

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     Section 9.3 Expenses; Indemnity; Damage Waiver.

     (a) The Company shall pay, or cause to be paid, (i) all reasonable out-of-pocket expenses
incurred by the Administrative Agent and its Affiliates, including the reasonable fees, charges and
disbursements of counsel for the Administrative Agent, in connection with the syndication of the
credit facility provided for herein, the preparation and administration of this Agreement and the
other Loan Documents (including reasonable expenses incurred in connection with due diligence and
initial and ongoing Collateral examination) or any amendments, modifications or waivers of the
provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall
be consummated) and (ii) all out-of-pocket expenses incurred by the Administrative Agent or any
Lender, including the fees, charges and disbursements of any counsel for the Administrative Agent
or any Lender, in connection with the enforcement or protection of its rights in connection with
this Agreement and the other Loan Documents, including its rights under this Section, or in
connection with the Loans made hereunder, including all such out-of-pocket expenses incurred during
any workout, restructuring or negotiations in respect of such Loans.

     (b) The Company shall indemnify the Administrative Agent and each Lender, and each Related
Party of any of the foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities
and related expenses, including the fees, charges and disbursements of any counsel for any
Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or
as a result of (i) the execution or delivery of this Agreement, the other Loan Documents or any
agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of
their respective obligations hereunder, the performance of the relevant parties of their respective
obligations under any of the other Loan Documents, or the consummation of any of the Transactions
or any other transactions contemplated hereby, (ii) any Loan or any request therefor, or the use of
the proceeds therefrom, (iii) any actual or alleged presence or release of Hazardous Materials on
or from any property owned, leased or operated by a Loan Party or any of its Subsidiaries, or any
Environmental Liability related in any way to the Loan Parties or any of their Subsidiaries, or
(iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of
the foregoing, whether based on contract, tort or any other theory and regardless of whether any
Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or related expenses resulted
from the gross negligence or willful misconduct of such Indemnitee.

     (c) To the extent that the Company fails to pay, or cause to be paid, any amount required to
be paid by it to the Administrative Agent under paragraph (a) or (b) of this Section, each Lender
severally agrees to pay to the Administrative Agent such Lender’s Applicable Percentage (determined
as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such
unpaid amount; provided that the unreimbursed expense or indemnified loss, claim, damage, liability
or related expense, as the case may be, was incurred by or asserted against the Administrative
Agent in its capacity as such.

     (d) To the extent permitted by applicable law, a Loan Party shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,

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consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the Transactions or any Loan or the use of the proceeds
thereof.

     (e) All amounts due under this Section shall be payable promptly after written demand
therefor.

     Section 9.4 Successors and Assigns.

     (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby, except that the Loan
Parties may not assign or otherwise transfer any of their rights or obligations hereunder without
the prior written consent of each Lender (and any attempted assignment or transfer by a Loan Party
without such consent shall be null and void). Nothing in this Agreement, expressed or implied,
shall be construed to confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby and, to the extent expressly contemplated hereby, the
Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right,
remedy or claim under or by reason of this Agreement.

     (b) Any Lender may assign to one or more assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment and the Loans at the
time owing to it); provided that (i) except in the case of an assignment to a Lender or a Lender
Affiliate, each of the Company (so long as no Event of Default has occurred and is continuing) and
the Administrative Agent must give its prior written consent to such assignment (which consent
shall not be unreasonably withheld), (ii) except in the case of an assignment to a Lender or a
Lender Affiliate or an assignment of the entire remaining amount of the assigning Lender’s
Commitment, the amount of the Commitment 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) shall not be less than $5,000,000 unless each of the Company
(so long as no Event of Default has occurred and is continuing) and the Administrative Agent
otherwise consent, (iii) 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, (iv) 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 $3,000 and (v) the assignee, if it shall not be a
Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. Subject to
acceptance and recording thereof pursuant to paragraph (d) of this Section, from and after the
effective date specified in each Assignment and Acceptance the assignee thereunder shall be a party
hereto 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 arising from and after the date of such assignment (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 2.15, 2.16, 2.17 and 9.3). Any assignment or transfer
by a Lender of rights or obligations under this Agreement that does not comply with this paragraph
shall be treated for

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purposes of this Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (e) of this Section. If the consent of the Company is
required pursuant to this Section 9.4, and the Company does not respond to the
Administrative Agent’s request for consent within five Business Days of such request, the consent
shall be deemed given.

     (c) The Administrative Agent shall maintain at one of its offices 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 Commitment of, and principal amount 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 Loan Parties, 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 any Loan Party and any Lender, at any reasonable time and from time to
time upon reasonable prior notice.

     (d) Upon its receipt of a duly completed Assignment and Acceptance executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee
shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph
(b) of this Section 9.4 and any written consent to such assignment required by paragraph
(b) of this Section 9.4, the Administrative Agent shall accept such Assignment and
Acceptance and record the information contained therein in the Register. No assignment shall be
effective for purposes of this Agreement unless it has been recorded in the Register as provided in
this paragraph.

     (e) Any Lender may, without the consent of or notice to the Loan Parties or the Administrative
Agent, sell participations to one or more banks or other entities (a “Participant”) in 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 owing to it); provided that (i) such Lender’s obligations
under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to
the other parties hereto for the performance of such obligations and (iii) the Loan Parties, the
Administrative Agent and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this Agreement. Any agreement
or instrument pursuant to which a Lender sells such a participation shall provide that such Lender
shall retain the sole right to enforce this Agreement and the other Loan Documents and to approve
any amendment, modification or waiver of any provision of this Agreement or any other Loan
Document; provided that such agreement or instrument may provide that such Lender will not, without
the consent of the Participant, agree to any amendment, modification or waiver described in the
first proviso to Section 9.2(b) that affects such Participant. Subject to paragraph (f) of
this Section 9.4, the Loan Parties agree that each Participant shall be entitled to the
benefits of Sections 2.15, 2.16 and 2.17 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (b) of this Section. To the extent
permitted by law, each Participant also shall be entitled to the benefits of Section 9.8 as
though it were a Lender, provided such Participant agrees to be subject to Section 2.18(b)
as though it were a Lender.

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     (f) A Participant shall not be entitled to receive any greater payment under Section 2.15
or 2.17 than the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to such Participant is
made with the Company’s prior written consent. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 2.17 unless the Company is
notified of the participation sold to such Participant and such Participant agrees, for the benefit
of the Company, to comply with Section 2.17(e) as though it were a Lender.

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

     Section 9.5 Survival. All covenants, agreements, representations and warranties made by any of the
Loan Parties herein, in the other Loan Documents and in the certificates or other instruments
delivered in connection with or pursuant to this Agreement shall be considered to have been relied
upon by the other parties hereto and shall survive the execution and delivery of this Agreement and
the making of any Loans, regardless of any investigation made by any such other party or on its
behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or
knowledge of any Default or incorrect representation or warranty at the time any credit is extended
hereunder, and shall continue in full force and effect as long as the principal of or any accrued
interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and
unpaid and so long as the Commitments have not expired or terminated. The provisions of
Sections 2.15, 2.16, 2.17 and 9.3 and Article VIII shall survive and remain in full
force and effect regardless of the consummation of the transactions contemplated hereby, the
repayment of the Loans, the expiration or termination of the Commitments, the resignation of the
Administrative Agent or the termination of this Agreement or any other Loan Document or any
provision hereof or thereof.

     Section 9.6 Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts
(and by different parties hereto on different counterparts), each of which shall constitute an
original, but all of which when taken together shall constitute a single contract. This Agreement,
the other Loan Documents and any separate letter agreements with respect to fees payable to the
Administrative Agent constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. This Agreement shall become effective when it shall have
been executed by the Administrative Agent and when the Administrative Agent shall have received
counterparts hereof which, when taken together, bear the signatures of each of the other parties
hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns in accordance with Section 9.4. Delivery of an
executed counterpart of a signature page of this Agreement by telecopy or other electronic imaging
means shall be effective as delivery of a manually executed counterpart of this Agreement.

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     Section 9.7 Severability. Any provision of this Agreement or any other Loan Document held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability without affecting the
validity, legality and enforceability of the remaining provisions hereof or thereof; and the
invalidity of a particular provision in a particular jurisdiction shall not invalidate such
provision in any other jurisdiction.

     Section 9.8 Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender
and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest
extent permitted by law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other obligations at any time owing by such
Lender or Affiliate to or for the credit or the account of any or all of the Loan Parties against
any of and all the obligations of any of the Loan Parties now or hereafter existing under this
Agreement or any other Loan Document, irrespective of whether or not such Lender shall have made
any demand under this Agreement or any other Loan Document and although such obligations may be
unmatured. The rights of each Lender under this Section are in addition to other rights and
remedies (including other rights of setoff) which such Lender may have.

     Section 9.9 Governing Law; Jurisdiction; Consent to Service of Process.

     (a) This Agreement shall be construed in accordance with and governed by the law of the State
of New York.

     (b) Each party to this Agreement hereby irrevocably and unconditionally submits, for itself
and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York
sitting in New York County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement or any other Loan Document, or for recognition or enforcement of any
judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined in such New York
State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees
that a final judgment in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in
this Agreement or any other Loan Document shall affect any right that any party hereto may
otherwise have to bring any action or proceeding relating to this Agreement or any other Loan
Document against any other party or their properties in the courts of any jurisdiction.

     (c) Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this Agreement or any
other Loan Document in any court referred to in paragraph (b) of this Section 9.9. Each of
the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense
of an inconvenient forum to the maintenance of such action or proceeding in any such court.

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     (d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.1. Nothing in this Agreement will affect the right of
any party to this Agreement to serve process in any other manner permitted by law.

     Section 9.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OF THE OTHER LOAN DOCUMENTS OR ANY OF
THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION 9.10.

     Section 9.11 Headings. Article and Section headings and the Table of Contents used herein are for
convenience of reference only, are not part of this Agreement and shall not affect the construction
of, or be taken into consideration in interpreting, this Agreement.

     Section 9.12 Confidentiality. Each of the Administrative Agent and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (a)
to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal
counsel and other advisors (it being understood that the Persons to whom such disclosure is made
will be informed of the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory authority, (c) to the
extent required by applicable laws or regulations or by any subpoena or similar legal process, (d)
to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder
or any other Loan Document or any suit, action or proceeding relating to this Agreement or any
other Loan Document or the enforcement of rights hereunder or under any other Loan Document, (f)
subject to an agreement containing provisions substantially the same as those of this Section, to
(i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivatives transaction relating to the Company and its obligations, (g)
with the consent of the Company, (h) to the extent such Information (i) becomes publicly available
other than as a result of a breach of this Section or (ii) becomes available to the Administrative
Agent or any Lender on a non-confidential basis from a source other than the Company, or (i) to the
extent provided in Section 9.16. For the purposes of this Section, “Information” means all
information received from any Loan Party relating to the Loan Parties or their business, other than
any such information that is available to the Administrative Agent or any Lender on a
non-confidential basis prior to disclosure by a Loan Party. Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own confidential
information.

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     Section 9.13 Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any time
the interest rate applicable to any Loan, together with all fees, charges and other amounts which
are treated as interest on such Loan under applicable law (collectively the “Charges”),
shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for,
charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable
law, the rate of interest payable in respect of such Loan hereunder, together with all Charges
payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the
interest and Charges that would have been payable in respect of such Loan but were not payable as a
result of the operation of this Section shall be cumulated and the interest and Charges payable to
such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate
therefor) until such cumulated amount, together with interest thereon at the Federal Funds Rate to
the date of repayment, shall have been received by such Lender.

     Section 9.14 [Intentionally Omitted].

     Section 9.15 USA Patriot Act. Each Lender hereby notifies each of the Loan Parties 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 such
Loan Party, which information includes the name and address of such Loan Party and other
information that will allow such Lender to identify such Loan Party in accordance with the Act.

     Section 9.16 No Advisory or Fiduciary Responsibility.

Each of the Loan Parties acknowledges and agrees that the Administrative Agent and its Affiliates
may be engaged in a broad range of transactions that involve interests that differ from those of
the Loan Parties and their respective Affiliates, including, without limitation, providing debt
financing, equity capital or other services (including financial advisory services) to other
companies, and neither the Administrative Agent nor its Affiliates has any obligation to disclose
any of such interests to the Loan Parties or their respective Affiliates. Furthermore, each of the
Loan Parties acknowledges and agrees that in connection with all aspects of each transaction
contemplated by this Agreement, the Borrower, on the one hand, and the Administrative Agent and its
Affiliates, on the other hand, have arms-length business relationships that create no fiduciary
duty on the part of any party hereto, and each Loan Party expressly disclaims any fiduciary
relationship.

     Section 9.17 Joint and Several Liability of Borrowers.

     (a) Each of the Borrowers is accepting joint and several liability hereunder and under the
other Loan Documents in consideration of the financial accommodations to be provided by the
Administrative Agent and the Lenders under this Agreement, for the mutual benefit, directly and
indirectly, of each of the Borrowers and in consideration of the undertakings of the other
Borrowers to accept joint and several liability for the Obligations.

     (b) Each of the Borrowers, jointly and severally, hereby irrevocably and unconditionally
accepts, not merely as a surety but also as a co-debtor, joint and several liability

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with the other Borrowers, with respect to the payment and performance of all of the
Obligations, it being the intention of the parties hereto that all the Obligations shall be the
joint and several obligations of each Borrower without preferences or distinction among them.

     (c) If and to the extent that any Borrower shall fail to make any payment with respect to any
of the Obligations as and when due or to perform any of the Obligations in accordance with the
terms thereof, then in each such event the other Borrowers will make such payment with respect to,
or perform, such Obligation.

     (d) The Obligations of each Borrower under the provisions of this Section 9.17
constitute the absolute and unconditional, full recourse Obligations of each Borrower enforceable
against each such Borrower to the full extent of its properties and assets, irrespective of the
validity, regularity or enforceability of this Agreement or any other circumstances whatsoever.

     (e) Except as otherwise expressly provided in this Agreement, each Borrower hereby waives
notice of acceptance of its joint and several liability, notice of any Loans made pursuant to this
Agreement, notice of the occurrence of any Default, or of any demand for any payment under this
Agreement, notice of any action at any time taken or omitted by the Administrative Agent or the
Lenders, or any of them, under or in respect of any of the Obligations, any requirement of
diligence or to mitigate damages and, generally, to the extent permitted by applicable law, all
demands, notices and other formalities of every kind in connection with this Agreement (except as
otherwise provided in this Agreement). To the extent permitted by applicable law, each Borrower
hereby assents to, and waives notice of, any extension or postponement of the time for the payment
of any of the Obligations, the acceptance of any payment of any of the Obligations, the acceptance
of any partial payment thereon, any waiver, consent or other action or acquiescence by the
Administrative Agent or the Lenders, or any of them, at any time or times in respect of any default
by any Borrower in the performance or satisfaction of any term, covenant, condition or provision of
this Agreement, any and all other indulgences whatsoever by the Administrative Agent or the
Lenders, or any of them, in respect of any of the Obligations, and the taking, addition,
substitution or release, in whole or in part, at any time or times, of any security for any of the
Obligations or the addition, substitution or release, in whole or in part, of any Borrower.
Without limiting the generality of the foregoing, each Borrower assents to any other action or
delay in acting or failure to act on the part of the Administrative Agent or the Lenders, or any of
them, with respect to the failure by any Borrower to comply with any of its respective Obligations,
including, without limitation, any failure strictly or diligently to assert any right or to pursue
any remedy or to comply fully with applicable laws or regulations thereunder, which might, but for
the provisions of this Section 9.17 afford grounds for terminating, discharging or
relieving any Borrower, in whole or in part, from any of its Obligations under this Section
9.17, it being the intention of each Borrower that, so long as any of the Obligations hereunder
remain unsatisfied, the Obligations of such Borrower under this Section 9.17 shall not be
discharged except by performance and then only to the extent of such performance. The Obligations
of each Borrower under this Section 9.17 shall not be diminished or rendered unenforceable
by any winding up, reorganization, arrangement, liquidation, reconstruction or similar proceeding
with respect to any Borrower or the Administrative Agent or the Lenders, or any of them. The joint
and several liability of each Borrower hereunder shall continue in full force and effect
notwithstanding any absorption,

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merger, amalgamation or any other change whatsoever in the name, constitution or place of
formation of any of the Borrowers or the Administrative Agent or the Lenders, or any of them.

     (f) The provisions of this Section 9.17 are made for the benefit of the Administrative
Agent, the Lenders and their respective successors and assigns, and may be enforced by it or them
from time to time against any or all Borrowers as often as occasion therefor may arise and without
requirement on the part of the Administrative Agent or any Lender, successor or assign first to
marshal any of its or their claims or to exercise any of its or their rights against any Borrower
or to exhaust any remedies available to it or them against any Borrower or to resort to any other
source or means of obtaining payment of any of the Obligations hereunder or to elect any other
remedy. The provisions of this Section 9.17 shall remain in effect until all of the
Obligations shall have been indefeasibly paid in full or otherwise fully satisfied. If, at any
time, any payment, or any part thereof, made in respect of any of the Obligations, is rescinded or
must otherwise be restored or returned by the Administrative Agent or any Lender upon the
insolvency, bankruptcy or reorganization of any Borrower, or otherwise, the provisions of this
Section 9.17 will forthwith be reinstated in effect, as though such payment had not been
made.

     (g) Each Borrower hereby agrees that it will not enforce any of its rights of contribution or
subrogation against any other Borrower with respect to any liability incurred by it hereunder or
under any of the other Loan Documents, any payments made by it to the Administrative Agent or any
Lender with respect to any of the Obligations or any collateral security therefor until such time
as all of the Obligations have been paid in full in cash. Any claim which any Borrower may have
against the other Borrowers with respect to any payments to the Administrative Agent or any Lender
hereunder or under any other Loan Documents is hereby expressly made subordinate and junior in
right of payment, including without limitation, as to any increases in the Obligations arising
hereunder or thereunder, to the prior payment in full in cash of the Obligations and, in the event
of any insolvency, bankruptcy, receivership, liquidation, reorganization or other similar
proceeding under the laws of any jurisdiction relating to any Borrower, its debts or its assets,
whether voluntary or involuntary, all such Obligations shall be paid in full in cash before any
payment or distribution of any character, whether in cash, securities or other property, shall be
made to the other Borrowers therefor.

     (h) Notwithstanding any provision to the contrary contained herein or in any of the other Loan
Documents, to the extent the obligations of any Borrower shall be adjudicated to be invalid or
unenforceable for any reason (including, without limitation, because of any applicable state or
federal law relating to fraudulent conveyances or transfers) then the obligations of such Borrower
hereunder shall be limited to the maximum amount that is permissible under applicable law (whether
federal or state and including, without limitation, the Bankruptcy Code of the United States).

     (i) Each Borrower hereby appoints the Company to act as its agent for all purposes under this
Agreement (including, without limitation, with respect to all matters related to the borrowing and
repayment of Loans) and agrees that (i) the Company may execute such documents on behalf of the
Borrowers as the Company deems appropriate in its sole discretion and the Borrowers shall be
obligated by all of the terms of any such document executed on their behalf, (ii) any notice or
communication delivered by the Administrative Agent or any Lender to the Company shall be deemed
delivered to each Borrower and (iii) the Administrative Agent or

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the Lenders may accept, and be permitted to rely on, any document, instrument or agreement
executed by the Company on behalf of the Borrowers.

     Section 9.18 Non Recourse Nature. Subject to the qualifications below, the Administrative Agent shall
not enforce the liability and obligation of any Borrower hereunder to perform and observe any or
all of the Obligations by any action or proceeding wherein a money judgment shall be sought against
such Borrower, except that the Administrative Agent may bring a foreclosure action, an action for
specific performance or any other appropriate action or proceeding to enable the Administrative
Agent to enforce and realize upon its interest under this Agreement and the other Loan Documents or
in any Collateral given or granted to the Administrative Agent pursuant to any of the Loan
Documents; provided, however, that, except as specifically provided herein, any judgment in any
such action or proceeding shall be enforceable against such Borrower only to the extent of such
Borrower’s interest in any Collateral, and the Administrative Agent shall not sue for, seek or
demand any deficiency judgment against such Borrower in any such action or proceeding under or by
reason of this Agreement or any other Loan Document. The provisions of this Section 9.18 shall
not, however, (i) constitute a waiver, release or impairment of any obligation evidenced, governed
or secured by any of the Loan Documents; (ii) impair the right of the Administrative Agent to name
any Borrower as a party defendant in any action or suit for foreclosure or sale under any Mortgage
or other Collateral Document; (iii) affect the validity or enforceability of any of the Loan
Documents or any guaranty made in connection with this Agreement or any of the Loans or any of the
rights and remedies of the Administrative Agent or any other Secured Party hereunder; (iv) impair
the right of the Administrative Agent or any other Secured Party to obtain the appointment of a
receiver; (v) impair the enforcement of any Mortgage or other Collateral Document; (vi) constitute
a prohibition against the Administrative Agent or any other Secured Party to seek a deficiency
judgment against the Guarantor in order to fully realize the security granted by the Mortgages and
other Collateral Documents or to commence any other appropriate action or proceeding in order for
the Administrative Agent or any other Secured Party to exercise its remedies against any of the
Collateral (but not for the purpose of enforcing such deficiency judgment against any Borrower); or
(vii) constitute a waiver of the right of the Administrative Agent or any other Secured Party to
enforce the liability and obligation of any Borrower, by money judgment or otherwise, to the extent
of any loss, damage, cost, expense, liability, claim or other obligation actually incurred by the
Administrative Agent or any other Secured Party (including attorneys’ fees and costs reasonably
incurred) arising out of or in connection with any of the following:

     (a) fraud, willful misconduct, misrepresentation or failure to disclose a material fact by or
on behalf of any Borrower, the Guarantor, any Affiliate of any Borrower or any Guarantor or any of
their respective agents or representatives in connection with any of the Loan Documents or any of
the Loans, including by reason of any claim under the Racketeer Influenced and Corrupt
Organizations Act;

     (b) the breach of any representation, warranty, covenant or indemnification provision in any
Mortgage or other Loan Document concerning environmental laws, hazardous substances, asbestos
and/or any other Hazardous Materials or any indemnification of the Administrative Agent or any
other Secured Party with respect thereto;

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     (c) wrongful removal or destruction of any portion of any Collateral or damage to any
Collateral caused by willful misconduct or gross negligence;

     (d) any intentional physical waste of any Collateral by any Borrower, the Guarantor or any of
their respective Affiliates;

     (e) the forfeiture by any Borrower or the Guarantor of any Collateral because of the conduct
or purported conduct of criminal activity by any Borrower or the Guarantor or any of their
respective agents or representatives;

     (f) the misappropriation or conversion by or on behalf of any Borrower or the Guarantor of (A)
any insurance proceeds paid by reason of any loss, damage or destruction to any of the Collateral,
(B) any awards or other amounts received in connection with the condemnation of all or a portion of
any of the Collateral, or (C) any gross revenues (including rents, insurance proceeds, security
deposits, advance deposits or any other deposits and lease termination payments) with respect to
any of the Collateral or (D) any other funds due under any of the Loan Documents;

     (g) the failure to pay charges for labor or materials or other charges that can create Liens
on any portion of the Collateral (other than Permitted Encumbrances), but only if adequate gross
revenue from the Collateral exists from time to time to pay the same;

     (h) any security deposits, advance deposits or any other deposits collected with respect to
any of the Collateral which are not delivered to the Administrative Agent to the extent required
under any of the Loan Documents;

     (i) the failure to pay Taxes, but only if adequate gross revenue from the Collateral exists
from time to time to pay the same; and/or

     (j) the failure to obtain and maintain the fully paid for insurance policies in accordance
with the Credit Agreement or any Collateral Document.

     Notwithstanding anything to the contrary in this Agreement or any of the other Loan Documents,
(A) the Administrative Agent shall not be deemed to have waived any right which the Administrative
Agent may have under Section 506(a), 506(b), 1111(b) or any other provisions of the Bankruptcy Code
to file a claim for the full amount of the Obligations or to require that all Collateral shall
continue to secure all of the Obligations in accordance with the Loan Documents, and (B) the
Obligations shall be fully recourse to the Borrowers in the event that any of the following occur:
(i) any Borrower or the Guarantor is substantively consolidated with any other Person, unless such
consolidation was involuntary and not consented to by such Borrower or the Guarantor, as
applicable, and is discharged, stayed or dismissed within sixty (60) days following the occurrence
of such consolidation; (ii) any Borrower or the Guarantor fails to obtain the Required Lenders’
prior written consent to any subordinate financing secured by any Collateral or any other voluntary
Lien encumbering any Collateral other than a Permitted Encumbrance; (iii) any Borrower or the
Guarantor fails to obtain the Required Lenders’ prior written consent to any Transfer (as defined
below) of any Collateral or any interest therein or any Transfer of any direct or indirect interest
in any Borrower, in either case, other than a Transfer expressly permitted under this Agreement or
any other Loan Document; (iv) any Borrower or the

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Guarantor files a voluntary petition under the Bankruptcy Code or any other Federal or state
bankruptcy or insolvency law; (v) the filing of an involuntary petition against any Borrower or the
Guarantor under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law by
any other Person; (vi) any Borrower or the Guarantor files an answer consenting to, or otherwise
acquiescing in, or joining in, any involuntary petition filed against it by any other Person under
the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; (vii) any Borrower,
the Guarantor or any Affiliate, officer, director or representative which controls any Borrower or
the Guarantor consents to, or acquiesces in, or joins in, an application for the appointment of a
custodian, receiver, trustee or examiner for any Borrower, the Guarantor or any portion of any
Collateral; (viii) any Borrower or the Guarantor makes an assignment for the benefit of creditors
or admits, in writing or in any legal proceeding, its insolvency or inability to pay its debts as
they become due; or (ix) any Borrower or the Guarantor or any Affiliate of any of the foregoing, in
connection with any enforcement action or exercise or assertion of any right or remedy by or on
behalf of the Administrative Agent or any other Secured Party under or in connection with this
Agreement or any other Loan Document, seeks a defense, judicial intervention or injunctive or other
equitable relief of any kind, or asserts in a pleading filed in connection with a judicial
proceeding any defense against the Administrative Agent or any Secured Party or any right in
connection with any security for any of the Loans or other Obligations and such defense, judicial
intervention, injunctive or other relief or assertion is finally adjudicated to be without merit.
For purposes of this Section 9.18, a “Transfer” means, with respect to any asset or
property (including an equity interest), a voluntary or involuntary sale, conveyance, mortgage,
grant, bargain, encumbrance, pledge, assignment, grant of an option or any other transfer or
disposition, by operation of law or otherwise, of or with respect to such asset or property, other
than, in the case of real property, the lease of such real property in the ordinary course of
business.

ARTICLE X

GUARANTY

     Section 10.1 The Guaranty. The Guarantor hereby guarantees to each Lender, as primary obligor and not
as surety, the prompt payment of the Obligations in full when due (whether at stated maturity, as a
mandatory prepayment, by acceleration, as a mandatory cash collateralization or otherwise) strictly
in accordance with the terms thereof. The Guarantor hereby further agrees that if any of the
Obligations are not paid in full when due (whether at stated maturity, as a mandatory prepayment,
by acceleration, as a mandatory cash collateralization or otherwise), the Guarantor will promptly
pay the same, without any demand or notice whatsoever, and that in the case of any extension of
time of payment or renewal of any of the Obligations, the same will be promptly paid in full when
due (whether at extended maturity, as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise) in accordance with the terms of such extension or renewal.

     Notwithstanding any provision to the contrary contained herein or in any other of the Loan
Documents, the obligations of the Guarantor under this Agreement and the other Loan Documents shall
be limited to an aggregate amount equal to the largest amount that would not render such
obligations subject to avoidance under the Debtor Relief Laws or any comparable provisions of any
applicable state law.

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     Section 10.2 Obligations Unconditional. The obligations of the Guarantor under Section 10.1 are
absolute and unconditional, irrespective of the value, genuineness, validity, regularity or
enforceability of any of the Obligations, any of the Loan Documents or any other agreement or
instrument referred to therein, or any substitution, release, impairment or exchange of any other
guarantee of or security for any of the Obligations, and, to the fullest extent permitted by
applicable law, irrespective of any other circumstance whatsoever which might otherwise constitute
a legal or equitable discharge or defense of a surety or guarantor, it being the intent of this
Section 10.2 that the obligations of the Guarantor hereunder shall be absolute and unconditional
under any and all circumstances. The Guarantor agrees that it shall have no right of subrogation,
indemnity, reimbursement or contribution against any Borrower for amounts paid under this Article X
until such time as the Obligations have been paid in full, the Commitments have expired or
terminated. Without limiting the generality of the foregoing, it is agreed that, to the fullest
extent permitted by law, the occurrence of any one or more of the following shall not alter or
impair the liability of the Guarantor hereunder, which shall remain absolute and unconditional as
described above:

     (a) at any time or from time to time, without notice to the Guarantor, the time for any
performance of or compliance with any of the Obligations shall be extended, or such performance or
compliance shall be waived;

     (b) any of the acts mentioned in any of the provisions of any of the Loan Documents between
any Loan Party and any Lender or the Administrative Agent, or any other agreement or instrument
referred to in the Loan Documents shall be done or omitted;

     (c) the maturity of any of the Obligations shall be accelerated, or any of the Obligations
shall be modified, supplemented or amended in any respect, or any right under any of the Loan
Documents between any Loan Party and any Lender, or any other agreement or instrument referred to
in the Loan Documents shall be waived or any other guarantee of any of the Obligations or any
security therefor shall be released, impaired or exchanged in whole or in part or otherwise dealt
with;

     (d) any Lien granted to, or in favor of, the Administrative Agent or any Lender or Lenders as
security for any of the Obligations shall fail to attach or be perfected; or

     (e) any of the Obligations shall be determined to be void or voidable (including, without
limitation, for the benefit of any creditor of the Guarantor) or shall be subordinated to the
claims of any Person (including, without limitation, any creditor of the Guarantor).

     With respect to its obligations hereunder, the Guarantor hereby expressly waives diligence,
presentment, demand of payment, protest and all notices whatsoever (other than notices to the
Guarantor which are specifically required under a Loan Document to which the Guarantor is a party),
and any requirement that the Administrative Agent or any Lender exhaust any right, power or remedy
or proceed against any Person under any of the Loan Documents between any Loan Party and any
Lender, or any Affiliate of a Lender, or any other agreement or instrument referred to in the Loan
Documents or against any other Person under any other guarantee of, or security for, any of the
Obligations.

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     Section 10.3 Reinstatement. The obligations of the Guarantor under this Article X shall be
automatically reinstated if and to the extent that for any reason any payment by or on behalf of
any Person in respect of the Obligations is rescinded or must be otherwise restored by any holder
of any of the Obligations, whether as a result of any proceedings in bankruptcy or reorganization
or otherwise, and the Guarantor agrees that it will indemnify the Administrative Agent and each
Lender on demand for all reasonable costs and expenses (including, without limitation, the
reasonable fees, charges and disbursements of counsel) incurred by the Administrative Agent or such
Lender in connection with such rescission or restoration, including any such costs and expenses
incurred in defending against any claim alleging that such payment constituted a preference,
fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law.

     Section 10.4 Certain Additional Waivers. The Guarantor further agrees that it shall have no right of
recourse to security for the Obligations, except through the exercise of rights of subrogation
pursuant to Section 10.2 and through the exercise of rights of contribution pursuant to Section
10.6.

     Section 10.5 Remedies. The Guarantor agrees that, to the fullest extent permitted by law, as between
the Guarantor, on the one hand, and the Administrative Agent and the Lenders, on the other hand,
the Obligations may be declared to be forthwith due and payable as provided in Section 7.1 (and
shall be deemed to have become automatically due and payable in the circumstances provided in
Section 7.1) for purposes of Section 10.1 notwithstanding any stay, injunction or other prohibition
preventing such declaration (or preventing the Obligations from becoming automatically due and
payable) as against any other Person and that, in the event of such declaration (or the Obligations
being deemed to have become automatically due and payable), the Obligations (whether or not due and
payable by any other Person) shall forthwith become due and payable by the Guarantor for purposes
of Section 10.1.

     Section 10.6 Guaranty of Payment; Continuing Guarantee. The guarantee in this Article X is a
guaranty of payment and not of collection, is a continuing guaranty, and shall apply to all
Obligations whenever arising.

     Section 10.7 California Specific Provisions.

     (a) The Guarantor waives any rights and defenses that are or may become available to such
Guarantor by reason of §§ 2787 to 2855, inclusive, and §§ 2899 and 3433 of the California Civil
Code. As provided herein, this Guaranty shall be governed by, and construed in accordance with,
the internal laws of the State of New York. The foregoing waivers and provisions hereinafter set
forth in this Guaranty which pertain to California law are included solely out of an abundance of
caution, and shall not be construed to mean that any of the above-referenced provisions of
California law are in any way applicable to this Guaranty or any of the Obligations.

     (b) The Guarantor understands and acknowledges that if the Secured Parties or any of them
foreclose judicially or nonjudicially against any real property security for any of the
Obligations, that foreclosure could impair or destroy any ability that the Guarantor may have to
seek reimbursement, contribution, or indemnification from any of the Borrowers or others based

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on any right the Guarantor may have of subrogation, reimbursement, contribution, or
indemnification for any amounts paid by the Guarantor under this Guaranty. The Guarantor further
understands and acknowledges that in the absence of this paragraph, such potential impairment or
destruction of its rights, if any, may entitle the Guarantor to assert a defense to this Guaranty
based on Section 580d of the California Code of Civil Procedure as interpreted in Union Bank v.
Gradsky, 265 Cal. App. 2d 40 (1968). By executing this Guaranty, the Guarantor freely,
irrevocably, and unconditionally: (i) waives and relinquishes that defense and agrees that it will
be fully liable under this Guaranty even though the Secured Parties or any of them may foreclose,
either by judicial foreclosure or by exercise of power of sale, any deed of trust securing any of
the Obligations; (ii) agrees that it will not assert that defense in any action or proceeding which
the Secured Parties or any of them may commence to enforce this Guaranty; (iii) acknowledges and
agrees that the rights and defenses waived by it in this Guaranty include any right or defense that
it may have or be entitled to assert based upon or arising out of any one or more of §§ 580a, 580b,
580d, or 726 of the California Code of Civil Procedure or § 2848 of the California Civil Code; and
(iv) acknowledges and agrees that the Secured Parties are relying on this waiver in creating the
Obligations, and that this waiver is a material part of the consideration which the Secured Parties
are receiving for creating the Obligations.

     (c) The Guarantor waives all rights and defenses that it may have because any of the
Obligations is secured by real property. This means, among other things: (i) the Secured Parties
or any of them may collect from the Guarantor without first foreclosing on any real or personal
property collateral pledged by any of the other Loan Parties; and (ii) if the Secured Parties or
any of them foreclose on any real property collateral pledged by any of the other Loan Parties:
(A) the amount of the Obligations may be reduced only by the price for which that collateral is
sold at the foreclosure sale, even if the collateral is worth more than the sale price, and (B) the
Secured Parties or any of them may collect from the Guarantor even if the Secured Parties or any of
them, by foreclosing on the real property collateral, have destroyed any right the Guarantor may
have to collect from any of the Borrowers. This is an unconditional and irrevocable waiver of any
rights and defenses the Guarantor may have because any of the Obligations is secured by real
property. These rights and defenses include, but are not limited to, any rights or defenses based
upon § 580a, 580b, 580d, or 726 of the California Code of Civil Procedure.

     (d) The Guarantor waives any right or defense it may have at law or equity, including
California Code of Civil Procedure § 580a, to a fair market value hearing or action to determine a
deficiency judgment after a foreclosure.

     Section 10.8 Guaranty Not Secured. Anything to the contrary herein or in any of the other Loan
Documents notwithstanding, this Guaranty and the obligations of the Guarantor hereunder are not and
shall not be secured by the Agreement, any of the Mortgages, or any of the other Loan Documents.

[Remainder of Page Intentionally Left Blank]

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

	 	 	 

	COMPANY:

	 	W.P. CAREY & CO. LLC, a Delaware limited
	 

	 	liability company

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Donna M. Neiley 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 

	BORROWERS:

	 	TORREY PINES LIMITED PARTNERSHIP,
	 

	 	a California limited partnership

By: TORREY PINES, LLC,

       a Delaware limited liability company

By: CAREY REIT II, INC.,

       a Maryland corporation

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Donna M. Neiley 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 

	 

	 	CORPORATE PROPERTY ASSOCIATES 9, L.P., A DELAWARE
	 

	 	LIMITED PARTNERSHIP, a Delaware Limited Partnership

By: CAREY MANAGEMENT LLC,

       a Delaware limited liability company

By: CAREY REIT II, INC.,

       a Maryland corporation

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Donna M. Neiley 	 
	 	 	Title:  	      Senior Vice President 	 
	 

[Signature Page to Credit Agreement]

 

 

	 	 	 

	 

	 	PAPER LIMITED LIABILITY COMPANY,
	 

	 	a Delaware limited liability company

By: CPA PAPER, INC.,

       a Delaware corporation

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Donna M. Neiley 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 

	 

	 	WALS (IN) LLC,
	 

	 	a Delaware limited liability company

By: CAREY REIT II, INC.,

       a Maryland corporation

	 	 	 	 	 

	 

	 	By:  	 	 
	 	 

	 	 	 
	 	 

	 	Name: Donna M. Neiley

Title: Senior Vice President	 

[Signature Page to Credit Agreement]

 

 

	 	 	 

	ADMINISTRATIVE AGENT:

	 	BANK OF AMERICA, N.A.,

as Administrative Agent

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature
Page to Credit Agreement]

 

 

	 	 	 

	LENDERS:

	 	BANK OF AMERICA, N.A.

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature
Page to Credit Agreement]

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