Document:

EX-10.2

 

Exhibit 10.2

SECURITY AGREEMENT

(Deposit Account at Bank of America, N.A.)

     This
Security Agreement (Deposit Account) (this
“Agreement”) is made as of March 23,
2007 by and between AMERIGROUP Corporation, a Delaware corporation (the “Pledgor”), and
Bank of America, N.A. (the “Bank”).

     1. Grant of Security Interest. As security for any and all Indebtedness (as
defined below), the Pledgor hereby irrevocably and unconditionally grants a security interest in
and assigns and transfers the Deposit Account (as defined below) to the Bank.

     2. “Indebtedness” means any and all existing and future indebtedness and liabilities
of every kind, nature and character, direct or indirect, absolute or contingent, liquidated or
unliquidated, voluntary or involuntary and whether for principal, interest, premiums, fees,
indemnities, damages, costs, expenses or otherwise, of the Pledgor to the Bank, arising out of or
in connection with letter of credit no. L/C No. 3085765 issued by the Bank, any reimbursement or
similar agreements given by the Pledgor to the Bank in connection therewith (including all
renewals, extensions, amendments, refinancings and other modifications thereof), and all costs,
attorneys’ fees and expenses incurred by the Bank in connection with the collection or enforcement
thereof, and whether recovery upon such indebtedness and liabilities may be or hereafter become
unenforceable or shall be an allowed or disallowed claim under any proceeding or case commenced by
or against the Pledgor under the Bankruptcy Code (Title 11, United States Code), any successor
statute or any 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, and including interest that accrues after the
commencement by or against the Pledgor of any proceeding thereunder. The Bank’s books and records
showing the amount of the Indebtedness shall be admissible in evidence in any action or proceeding,
and shall be binding upon the Pledgor and conclusive for the purpose of establishing the amount of
the Indebtedness.

     3. Deposit Account. For purposes of this Agreement, “Deposit
Account” means account no. [TBD] opened or to be opened by the Pledgor with the Bank, any
renewals or rollovers thereof, any successor or substitute deposit account(s) including, without
limitation, any such deposit account as it may have been renumbered or retitled, any proceeds
thereof (including without limitation any interest paid thereon), and any general intangibles and
choses in action arising therefrom or related thereto.

     4. Withdrawals; Renewals; Rollovers. The Pledgor shall not withdraw funds
from the Deposit Account without the Bank’s prior written consent. The Pledgor agrees that, upon
maturity of any deposit with a maturity date, such deposit shall be renewed at the Bank’s then
prevailing rate of interest for such time period as may be agreed by the Bank and the Pledgor.

     5. Interest Payments. Notwithstanding the Bank’s security interest in the
proceeds of the Deposit Account, the Bank will continue to pay to the Pledgor any interest accruing
thereunder until the occurrence of an Event of Default under this Agreement.

 

 

     6. Pledgor’s Covenants, Warranties and Representations. The Pledgor
covenants, represents and warrants that unless compliance is waived by the Bank in writing:

     (a) Except as otherwise agreed by the Bank in writing, the Pledgor owns the Deposit
Account free and clear of any and all liens, encumbrances, or interests of any third parties
other than the security interest of the Bank, and will keep the Deposit Account free of all
liens, claims, security interests and encumbrances of any kind or nature, whether voluntary
or involuntary, except the security interest of the Bank.

     (b) The Pledgor shall, at the Pledgor’s expense, take all actions necessary or
advisable from time to time to maintain the first priority and perfection of said security
interest and shall not take any actions that would alter, impair or eliminate said priority
or perfection.

     (c) The Pledgor agrees to pay prior to delinquency all taxes, charges, liens and
assessments against the Deposit Account, and upon the failure of the Pledgor to do so, the
Bank at its option may pay any of them and shall be the sole judge of the legality or
validity thereof and the amount necessary to discharge the same.

     (d) The Pledgor’s exact legal name is correctly set forth on the signature page hereof.
The Pledgor will provide the Bank with at least 30 days’ prior written notice of any change
in the Pledgor’s name or identity.

     (e) The Pledgor is an organization of the type and (if not an unregistered entity) is
incorporated in or organized under the laws of the state specified in the first paragraph
above. The Pledgor shall give the Bank at least 30 days’ notice before changing its type of
organization, business structure or state of organization.

     (f) The Pledgor’s organizational identification number, if any, assigned by the state
of incorporation or organization is correctly set forth on the signature page hereof. The
Pledgor shall promptly notify the Bank (i) of any change of its organizational
identification number, or (ii) if the Pledgor does not have an organizational identification
number and later obtains one, of such organizational identification number.

     7. Certificates. Upon the Bank’s request, the Pledgor shall deliver any
certificate evidencing any part of the Deposit Account to the Bank, duly endorsed over to the Bank
as necessary.

     8. Costs. All advances, charges, costs and expenses, including reasonable
attorneys’ fees, incurred or paid by the Bank in exercising any right, power or remedy conferred by
this Agreement or in the enforcement hereof, shall become a part of the Indebtedness secured
hereunder and shall be paid to the Bank by the Pledgor immediately and without demand, with
interest thereon at an annual rate equal to the highest rate of interest that would be applicable
to any Indebtedness secured by this Agreement. Such costs and attorneys’ fees shall include,
without limitation, the allocated cost of in-house counsel.

2

 

     9. Events of Default. Any one or more of the following shall be a default
hereunder (“Event of Default”):

     (a) The Pledgor or any comaker, accommodation maker, surety or guarantor of the
Indebtedness or any endorser of any note or other document evidencing the Indebtedness (a
“Credit Party”) fails to pay any Indebtedness when due, or breaches any other term,
provision, warranty or representation of any agreement evidencing or relating to the
Indebtedness.

     (b) Any custodian, receiver or trustee is appointed to take possession, custody or
control of all or a substantial portion of the property of any Credit Party.

     (c) Any Credit Party becomes insolvent, or is generally not paying or admits in writing
its inability to pay its debts as they become due, makes a general assignment for the
benefit of creditors, or commences any case, proceeding or other action under any bankruptcy
or other law for the relief of, or relating to, debtors.

     (d) Any case, proceeding or other action is commenced against any Credit Party under
any bankruptcy or other law for the relief of, or relating to, debtors.

     (e) Any involuntary lien of any kind or character attaches to the Deposit Account.

     (f) Any financial statement, certificate, schedule or other information now or
hereafter furnished by any Credit Party to the Bank proves to have been false or incorrect
in any material respect when furnished to the Bank.

     (g) If any Indebtedness is an obligation or liability of any kind (including any
renewals, extensions or modifications thereof) arising out of or relating to any transaction
(including an agreement with respect thereto) now existing or hereafter entered into which
is a rate swap, basis swap, forward rate transaction, commodity swap, commodity option,
equity or equity index swap, equity or equity index option, bond option, interest rate
option, spot or forward foreign exchange transaction, cap transaction, floor transaction,
collar transaction, currency swap transaction, cross-currency rate swap transaction,
currency option, credit swap or default transaction or any other similar transaction
(including any option with respect to any of these transactions) or any combination thereof,
whether linked to one or more interest rates, foreign currencies, commodity prices, equity
prices or other financial measures (individually, a “Hedging Transaction;”
collectively, the “Hedging Transactions”), any termination event, event of default
or other similar event occurs under such Indebtedness.

     10. Remedies. If an Event of Default occurs, the Bank may do any one or
more of the following:

     (a) Declare all Indebtedness to be immediately due and payable, whereupon the same
shall become and be immediately due and payable, without notice of default, presentment or
demand for payment, protest or notice of nonpayment or dishonor, or other notices or demands
of any kind or character, all of which are hereby expressly

3

 

waived; provided, however, that upon the occurrence of an Event of
Default described in Paragraph 9(c) or 9(d), all Indebtedness shall become and be
immediately due and payable, without notice of default, presentment or demand for payment,
protest or notice of nonpayment or dishonor, or other notices or demands of any kind or
character, all of which are hereby expressly waived.

     (b) Exercise as to the Deposit Account all of the rights, powers and remedies of an
owner and all of the rights, powers and remedies of a secured party under the UCC (as
defined below) and any other applicable law.

     (c) Apply, without notice, any funds in any Deposit Account against the Indebtedness.

     (d) Exercise any other remedy provided under this Agreement or by any applicable law.

     11. Return of Collateral. The Bank may at any time deliver the collateral
or any part thereof to the Pledgor and the receipt of the Pledgor shall be a complete and full
acquittance for the collateral so delivered, and the Bank shall thereafter be discharged from any
liability or responsibility therefor.

     12. Transfer of Collateral. Upon the transfer of all or any part of the
Indebtedness, the Bank may transfer all or any part of the collateral and shall be fully discharged
thereafter from all liability and responsibility with respect to such collateral so transferred,
and the transferee shall be vested with all the rights and powers of the Bank hereunder with
respect to such collateral so transferred; but with respect to any collateral not so transferred
the Bank shall retain all rights and powers hereby given.

     13. Other Rights. The rights, powers and remedies given to the Bank by this
Agreement shall be in addition to all rights, powers and remedies given to the Bank by virtue of
any statute or rule of law. Any forbearance or failure or delay by the Bank in exercising any
right, power or remedy hereunder shall not be deemed to be a waiver of such right, power or remedy,
and any single or partial exercise of any right, power or remedy hereunder shall not preclude the
further exercise thereof; and every right, power and remedy of the Bank shall continue in full
force and effect until such right, power or remedy is specifically waived by an instrument in
writing executed by the Bank.

     14. Termination. This Agreement shall remain in full force and effect until
terminated by the Bank.

     15. Miscellaneous.

     (a) The Pledgor hereby authorizes the Bank to file one or more financing statements
describing all or part of the collateral, and continuation statements, or amendments
thereto, relative to all or part of the collateral as authorized by applicable law. Such
financing statements, continuation statements and amendments will contain any other
information required by the UCC for the sufficiency or filing office acceptance of any
financing statement, continuation statement or amendment, including whether the

4

 

Pledgor is an organization, the type of organization and any organizational
identification number issued to the Pledgor. The Pledgor agrees to furnish any such
information to the Bank promptly upon request.

     (b) At the request of the Bank, the Pledgor shall execute such other agreements,
documents or instruments in connection with this Agreement as the Bank may reasonably deem
necessary to evidence or perfect the security interests granted herein, to maintain the
first priority of the security interests, or to effectuate the rights granted to the Bank
herein.

     (c) This Agreement shall be governed by and construed according to the internal laws of
the State of New York, except as otherwise required by mandatory provisions of law and
except to the extent that remedies are governed by the laws of any other jurisdiction. The
Pledgor hereby irrevocably (i) submits to the non-exclusive jurisdiction of any United
States Federal or State court sitting in New York County, Borough of Manhattan, in any
action or proceeding arising out of or relating to this Agreement, and (ii) waives to the
fullest extent permitted by law any defense asserting an inconvenient forum in connection
therewith. Service of process by the Bank in connection with such action or proceeding
shall be binding on the Pledgor if sent to the Pledgor by registered or certified mail at
its address specified below. The Pledgor agrees that the Bank may disclose to any
prospective purchaser and any purchaser of all or part of the Indebtedness any and all
information in the Bank’s possession concerning the Pledgor, this Agreement and the
collateral. The state referred to above in this subparagraph is the “bank’s jurisdiction”
for purposes of the UCC (as defined below).

     (d) References to “UCC” in this Agreement shall mean the Uniform Commercial Code as in
effect from time to time in the state referred to in subparagraph (d) above; provided that
if by mandatory provisions of law, the perfection, the effect of perfection or
non-perfection, or the priority of the security interests granted in this Agreement, as well
as all other security interests created or assigned as additional security for the
Indebtedness under the provisions of this Agreement, in any collateral is governed by the
Uniform Commercial Code as in effect in any other jurisdiction, the “UCC” means the Uniform
Commercial Code as in effect in such other jurisdiction for purposes of the provisions of
this Agreement relating to such perfection, effect of perfection or non-perfection, or the
priority of security interests. Any term used or defined in the UCC and not defined in this
Agreement has the meaning given to the term in the UCC, when used in this Agreement.

     (e) This Agreement shall benefit the Bank’s successors and assigns and shall bind the
Pledgor’s successors and assigns, except that the Pledgor may not assign its rights and
obligations under this Agreement. This Agreement shall bind all parties who become bound as
a debtor with respect to the Indebtedness.

     (f) In all cases where more than one party executes this Agreement, all words used
herein in the singular shall be deemed to have been used in the plural where the context and
construction so require, and the obligations and undertakings hereunder are joint and
several.

5

 

     16. WAIVER OF JURY TRIAL. TO THE EXTENT ALLOWED BY APPLICABLE LAW, THE
PLEDGOR AND THE BANK EACH WAIVE TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING
ON OR ARISING OUT OF THIS AGREEMENT.

     17. NOTICE OF FINAL AGREEMENT. THIS WRITTEN SECURITY AGREEMENT AND ANY
OTHER DOCUMENTS EXECUTED IN CONNECTION WITH THIS SECURITY AGREEMENT REPRESENT THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

     IN WITNESS WHEREOF, the parties have executed this Agreement by their authorized officers as
of the date first above written.

Pledgor:

AMERIGROUP
CORPORATION

By:  /s/  Stanley
F. Baldwin

Name:  Stanley
F. Baldwin

Title:    Corporate
Secretary

Bank:

BANK
OF AMERICA, N.A.

By:  /s/  Joseph L. Corah

Name:  Joseph L. Corah

Title:    Senior
Vice President

6EX-10.2

 

Exhibit 10.2

 

CREDIT AGREEMENT

dated as of

November 30, 2006

among

CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED,

The Lenders Party Hereto,

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Issuing Bank and Administrative Agent,

PNC BANK, NATIONAL ASSOCIATION,

as Syndication Agent,

Each of

CITIZENS BANK OF RHODE ISLAND,

THE BANK OF NEW YORK,

and

EUROHYPO AG, NEW YORK BRANCH

as a Documentation Agent,

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Lead Arranger and Sole Book Runner

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I. Definitions
	 	 	1	 
	SECTION 1.1. Defined Terms
	 	 	1	 
	SECTION 1.2. Classification of Loans and Borrowings
	 	 	24	 
	SECTION 1.3. Terms Generally
	 	 	24	 
	SECTION 1.4. Accounting Terms; GAAP
	 	 	24	 
	ARTICLE II. The Credits
	 	 	24	 
	SECTION 2.1. Commitments
	 	 	24	 
	SECTION 2.2. Loans and Borrowings
	 	 	25	 
	SECTION 2.3. Requests for Borrowings
	 	 	25	 
	SECTION 2.4. [Reserved]
	 	 	26	 
	SECTION 2.5. Extension of Maturity Date
	 	 	26	 
	SECTION 2.6. Letters of Credit
	 	 	26	 
	SECTION 2.7. Funding of Borrowings
	 	 	30	 
	SECTION 2.8. Interest Elections
	 	 	31	 
	SECTION 2.9. Termination and Reduction of Commitments
	 	 	32	 
	SECTION 2.10. Repayment of Loans; Evidence of Debt
	 	 	33	 
	SECTION 2.11. Prepayment of Loans
	 	 	33	 
	SECTION 2.12. Fees
	 	 	34	 
	SECTION 2.13. Interest
	 	 	35	 
	SECTION 2.14. Alternate Rate of Interest
	 	 	36	 
	SECTION 2.15. Increased Costs
	 	 	36	 
	SECTION 2.16. Break Funding Payments
	 	 	37	 
	SECTION 2.17. Taxes
	 	 	38	 
	SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	39	 
	SECTION 2.19. Mitigation Obligations; Replacement of Lenders
	 	 	41	 
	SECTION 2.20. Increase in Commitment
	 	 	42	 
	SECTION 2.21. Funds Transfer Disbursements
	 	 	42	 
	ARTICLE III. Representations and Warranties
	 	 	44	 
	SECTION 3.1. Organization; Powers
	 	 	44	 
	SECTION 3.2. Authorization; Enforceability
	 	 	44	 
	SECTION 3.3. Governmental Approvals; No Conflicts
	 	 	44	 
	SECTION 3.4. Financial Condition; No Material Adverse Change
	 	 	45	 
	SECTION 3.5. Properties
	 	 	46	 
	SECTION 3.6. Litigation and Environmental Matters
	 	 	46	 
	SECTION 3.7. Compliance with Laws and Agreements
	 	 	46	 
	SECTION 3.8. Investment Company Status
	 	 	47	 
	SECTION 3.9. Taxes
	 	 	47	 
	SECTION 3.10. ERISA
	 	 	47	 
	SECTION 3.11. Disclosure
	 	 	47	 
	SECTION 3.12. Insurance
	 	 	47	 
	SECTION 3.13. [Reserved]
	 	 	47	 
	SECTION 3.14. SEC Reports
	 	 	47	 
	SECTION 3.15. Representations and Warranties in Loan Documents
	 	 	48	 

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	 	 	Page
	SECTION 3.16. Organizational Documents
	 	 	48	 
	SECTION 3.17. REIT Status
	 	 	48	 
	SECTION 3.18. OFAC
	 	 	48	 
	ARTICLE IV. Conditions
	 	 	48	 
	SECTION 4.1. Closing Date
	 	 	48	 
	SECTION 4.2. Each Credit Event
	 	 	50	 
	ARTICLE V. Affirmative Covenants
	 	 	51	 
	SECTION 5.1. Financial Statements and Other Information
	 	 	51	 
	SECTION 5.2. Notices of Material Events
	 	 	53	 
	SECTION 5.3. Existence; Conduct of Business
	 	 	54	 
	SECTION 5.4. Payment of Obligations
	 	 	55	 
	SECTION 5.5. Maintenance of Properties; Insurance
	 	 	55	 
	SECTION 5.6. Books and Records; Inspection Rights
	 	 	55	 
	SECTION 5.7. Compliance with Laws
	 	 	56	 
	SECTION 5.8. Use of Proceeds and Letters of Credit
	 	 	56	 
	SECTION 5.9. [Reserved]
	 	 	56	 
	SECTION 5.10. Solvency of Loan Parties
	 	 	56	 
	SECTION 5.11. Further Assurances
	 	 	56	 
	SECTION 5.12. Distributions in the Ordinary Course
	 	 	57	 
	SECTION 5.13. ERISA Compliance
	 	 	57	 
	SECTION 5.14. REIT Status
	 	 	57	 
	SECTION 5.15. New Guarantors
	 	 	57	 
	SECTION 5.16. Distributions of Income to Borrower
	 	 	58	 
	ARTICLE VI. Negative Covenants
	 	 	58	 
	SECTION 6.1. Indebtedness and Other Financial Covenants
	 	 	58	 
	SECTION 6.2. Liens
	 	 	60	 
	SECTION 6.3. Fundamental Changes
	 	 	60	 
	SECTION 6.4. Investments, Loans, Advances, Guarantees and Acquisitions

	 	 	60	 
	SECTION 6.5. Hedging Agreements
	 	 	62	 
	SECTION 6.6. ERISA
	 	 	62	 
	SECTION 6.7. Margin Regulations; Securities Laws
	 	 	63	 
	SECTION 6.8. Transactions with Affiliates
	 	 	63	 
	ARTICLE VII. Events of Default
	 	 	63	 
	SECTION 7.1. Events of Default
	 	 	63	 
	ARTICLE VIII. The Administrative Agent
	 	 	66	 
	SECTION 8.1. Appointment and Authorization
	 	 	66	 
	SECTION 8.2. Wells Fargo as Lender
	 	 	67	 
	SECTION 8.3. Approvals of Lenders
	 	 	67	 
	SECTION 8.4. Notice of Defaults
	 	 	67	 
	SECTION 8.5.
Administrative Agent’s Reliance, Etc.
	 	 	68	 
	SECTION 8.6. Indemnification of Administrative Agent
	 	 	68	 
	SECTION 8.7.
Lender Credit Decision, Etc.
	 	 	69	 
	SECTION 8.8. Successor Administrative Agent
	 	 	70	 
	SECTION 8.9. Titled Agents
	 	 	71	 
	ARTICLE IX. Miscellaneous
	 	 	71	 
	SECTION 9.1. Notices
	 	 	71	 
	SECTION 9.2. Waivers; Amendments
	 	 	72	 

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	 	 	Page
	SECTION 9.3. Expenses; Indemnity; Damage Waiver
	 	 	72	 
	SECTION 9.4. Successors and Assigns
	 	 	74	 
	SECTION 9.5. Survival
	 	 	76	 
	SECTION 9.6. Counterparts; Integration; Effectiveness
	 	 	76	 
	SECTION 9.7. Severability
	 	 	77	 
	SECTION 9.8. Right of Setoff
	 	 	77	 
	SECTION 9.9. Governing Law; Jurisdiction; Consent to Service of Process
	 	 	77	 
	SECTION 9.10. WAIVER OF JURY TRIAL
	 	 	78	 
	SECTION 9.11. Headings
	 	 	78	 
	SECTION 9.12. Confidentiality
	 	 	78	 
	SECTION 9.13. Interest Rate Limitation
	 	 	79	 
	SECTION 9.14. [Reserved]
	 	 	79	 
	SECTION 9.15. Electronic Document Delivery
	 	 	79	 
	SECTION 9.16. USA Patriot Act
	 	 	80	 

-iii-

 

SCHEDULES:

	 	 	 
	Schedule 1

	 	Commitments
	Schedule 1.1(a)

	 	CPA REITs
	Schedule 1.1(b)

	 	Loan Parties
	Schedule 3.2

	 	Ownership Structure
	Schedule 3.3

	 	Consents
	Schedule 3.4

	 	Existing Indebtedness
	Schedule 3.6

	 	Disclosed Matters
	Schedule 4.1(f)

	 	Transactions not in the Ordinary Course
	 
	 	 
	EXHIBITS:
	 	 
	 
	 	 
	Exhibit A

	 	Form of Assignment and Acceptance
	Exhibit B

	 	Form of Borrowing Request
	Exhibit C

	 	Form of Guaranty
	Exhibit D

	 	Form of Interest Rate Election
	Exhibit E

	 	Form of Note
	Exhibit F-1

	 	Form of Opinion of Reed Smith LLP
	Exhibit F-2

	 	Form of Opinion of Local Counsel
	Exhibit G

	 	Financial Calculation Schedule Pursuant to Section 5.1
	Exhibit H

	 	Form of Intercompany Note
	Exhibit I

	 	Form of [Quarterly/Annual] Compliance Certificate to Accompany Reports
	Exhibit J

	 	Form of Transfer Authorizer Designation Form

-iv-

 

     THIS CREDIT AGREEMENT (this “Agreement”) dated as of November 30, 2006, among Corporate
Property Associates 14 Incorporated, a corporation formed under the laws of the State of Maryland
(the “Borrower”), the Lenders party hereto, and Wells Fargo Bank, National Association, as
contractual representative of the Lenders (in such capacity, the “Administrative Agent”) and as
issuing bank (in such capacity, the “Issuing Bank”), PNC Bank, National Association, as Syndication
Agent (each in such capacity, the “Syndication Agent”), each of Citizens Bank of Rhode Island, The
Bank of New York, and Eurohypo AG, New York Branch, as a Documentation Agent (each in such
capacity, a “Documentation Agent”), and Wells Fargo Bank, National Association, as Lead Arranger
and Sole Book Runner (the “Arranger”).

     WHEREAS, the Borrower has entered into that certain Agreement and Plan of Merger dated as of
June 29, 2006 (as amended, restated, supplemented or otherwise modified from time to time, the
“Merger Agreement”) by and among the Borrower, Corporate Property Associates 12 Incorporated (“CPA
12”), CPA 14 Acquisition Inc., CPA Holdings Incorporated and CPA 12 Merger Sub Inc., pursuant to
which CPA 12 is to merge with and into the Borrower with the Borrower continuing as the surviving
entity (the “Merger”); and

     WHEREAS, the Borrower has requested the Issuing Bank and the Lenders to make available to the
Borrower a revolving credit facility in the initial amount of $150,000,000, which will include a
$25,000,000 letter of credit subfacility, on and subject to the terms and conditions contained
herein, the proceeds of which the Borrower may use to satisfy certain of its obligations arising in
connection with the Merger;

     NOW, THEREFORE, in consideration of the mutual agreements contained herein, 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.

     “Accession Agreement” means an Accession Agreement substantially in the form of Annex I to the
Guaranty.

     “Adjusted EBITDA” means, for any Person, for any period and without duplication, (a) EBITDA
for such Person, for such period, plus (b) to the extent deducted when computing such EBITDA,
Performance Fees, minus (c) to the extent not already deducted when computing such EBITDA, the
greater of (i) the actual management fees in respect of Projects owned by such Person and its
consolidated subsidiaries paid during such period and (ii) an imputed management fee equal to 3.0%
of (1) rental income (including income from financing leases) for

 

 

all Projects owned by such Person and its consolidated subsidiaries and (2) rental income
(including income from financing leases) of Joint Ventures allocable to such Person or its
subsidiaries based on their ownership interests in such Joint Ventures.

     “Administrative Agent” means Wells Fargo Bank, National Association, in its capacity as
contractual representative of the Lenders hereunder.

     “Administrative Details Form” 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.

     “Alternate Base Rate” means, for any day, a rate per annum equal to the greater of the Prime
Rate in effect on such day and the Federal Funds Effective Rate in effect on such day plus 1/2 of
1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective from and including the effective date of such change in the Prime
Rate or the Federal Funds Effective Rate, respectively.

     “Alternate Merger” has the meaning set forth in the Merger Agreement.

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

     “Applicable Rate” means, for any day, with respect to any ABR Loan or Eurodollar Revolving
Loan, as the case may be, the applicable rate per annum set forth below under the caption “ABR
Spread” or “Eurodollar Spread”, as the case may be, based upon the range into which the Leverage
Ratio then falls in accordance with the following table:

	 	 	 	 	 	 	 	 	 
	     Leverage Ratio	 	Eurodollar Spread	 	ABR Spread
	less than 55%
	 	 	1.35	%	 	 	0.0	%
	55%-less than 60%
	 	 	1.45	%	 	 	0.0	%
	60% or higher
	 	 	1.60	%	 	 	0.125	%

     Any change in the Applicable Rate determined in accordance with this definition shall be effective
as of the first Business Day of the calendar month following the month that the Borrower delivers
to the Administrative Agent a Compliance Certificate pursuant to Sections 5.1(a)(ii) and (b)(ii).
In the event the Leverage Ratio in any Compliance Certificate is later determined to have been
inaccurate, the Applicable Rate shall be adjusted retroactively to the date of delivery of such
inaccurate Compliance Certificate to the percentage corresponding to the correct Leverage Ratio for
that date, and such adjusted Applicable Rate shall be applicable

-2-

 

for the same period as that period during which the Applicable Rate was incorrectly determined
based on the original inaccurate Leverage Ratio.

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

     “Assignee” has the meaning set forth in Section 9.4(b).

     “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, substantially in the form of Exhibit 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.

     “Average Unused Commitment Percentage” means, for any period, the ratio, expressed as a
percentage, of (a) the average daily aggregate amount of the Unused Commitments of the Lenders
during such period to (b) the average daily aggregate amount of the Commitments of the Lenders
during such period.

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

     “Borrower” 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.

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

     “Business Day” means any day that is not a Saturday, Sunday or other day on which commercial
banks in San Francisco, California 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.
Unless specifically referenced in this Agreement or any other Loan Document as a Business Day, all
references to “days” in this Agreement and each other Loan Document shall be to calendar days.

     “Capital Lease Obligations” of any Person means the obligations of such Person to pay rent or
other amounts under any lease of (or other arrangement conveying the right to use) real or personal
property, or a combination thereof, which obligations are required to be classified and accounted
for as capital leases on a balance sheet of such Person under GAAP, and the amount of such
obligations shall be the capitalized amount thereof determined in accordance with GAAP.

-3-

 

     “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.

     “Cash and Cash Equivalents” means unrestricted (i) cash, (ii) marketable direct obligations
issued or unconditionally guaranteed by the United States government and backed by the full faith
and credit of the United States government; 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 Borrower, any of its Subsidiaries, any trustee,
fiduciary or other person or entity holding securities under any employee benefit plan of the
Borrower or any of its Subsidiaries and other than any wholly owned direct or indirect subsidiary
of the Borrower), of shares representing more than 10% of the aggregate ordinary voting power
represented by the issued and outstanding capital stock of the Borrower; or (ii) occupation of a
majority of the seats (other than vacant seats) on the board of directors of the Borrower by
Persons who were neither (A) nominated by the board of directors of the Borrower nor (B) appointed
by directors so nominated; or (iii) the acquisition of direct or indirect Control of the Borrower
by any Person or group (other than any wholly owned direct or indirect subsidiary of the Borrower).

     “Change in Law” means (a) the adoption of any law, rule or regulation after the date of this
Agreement, (b) any change in any law, rule or regulation or in the interpretation or application
thereof by any Governmental Authority after the date of this Agreement or (c) compliance by any
Lender or the Issuing Bank (or, for purposes of Section 2.15(b), by any lending office of such
Lender or by such Lender’s or the Issuing Bank’s holding company, if any) with any request,
guideline or directive (whether or not having the force of law) of any Governmental Authority made
or issued after the date of this Agreement.

     “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.

     “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 and to acquire participations in Letters of Credit hereunder, expressed as an
amount representing the maximum aggregate amount of such Lender’s Revolving Credit

-4-

 

Exposure hereunder, as such commitment may be (a) increased pursuant to Section 2.20 or (b)
reduced from time to time pursuant to Section 2.9 and (c) 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, 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 $150,000,000.

     “Consolidated Businesses” means the Borrower 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 maturity date 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 Borrower 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 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.

-5-

 

     “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 12” has the meaning set forth in the recitals of this Agreement.

     “CPA REIT” means (a) a REIT managed or advised by W.P. Carey & Co. LLC (or a wholly-owned
Subsidiary thereof) and listed on Schedule 1.1(a) hereto and (b) any other REIT managed or advised
by W.P. Carey & Co. LLC (or a wholly-owned Subsidiary thereof) which REIT has investment policies,
and assets of classes and qualities, similar in each case to the REITs listed on Schedule 1.1(a).

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

     “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.

     “Defaulting Lender” has the meaning set forth in Section 2.18(e).

     “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.

     “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 losses on asset sales not otherwise included in
extraordinary losses determined on a consolidated basis in conformity with GAAP), (vi) minority
interests in Unconsolidated Entities and (vii) in the case of the Borrower, the aggregate of all
dividends paid on the Borrower’s or any of its consolidated Subsidiaries’ preferred equity
interests, less (b) the 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) (and in the case of the Borrower and its consolidated subsidiaries, other gains on
asset sales not otherwise included in extraordinary gains determined on a consolidated basis in
conformity with GAAP); plus (c) the portion allocable to such Person of EBITDA of such Person’s
Unconsolidated Entities (taking into account appropriate adjustments, if any, for minority
interests).

     “Eligible Assignee” means any Person that is: (a) an existing Lender; (b) a commercial bank,
trust company, savings and loan association, savings bank, insurance company, investment bank or
pension fund organized under the laws of the United States of America, any state thereof or the
District of Columbia, and having total assets in excess of $5,000,000,000; or (c) a commercial bank
organized under the laws of any other country which is a member of the Organization for Economic
Co-operation and Development, or a political subdivision of any

-6-

 

such country, and having total assets in excess of $10,000,000,000, provided that such bank is
acting through a branch or agency located in the United States of America. If such entity is not
currently a Lender, such entity’s (or in the case of a bank which is a subsidiary, such bank’s
parent’s) senior unsecured long term indebtedness must be rated BBB or higher by S&P, Baa2 or
higher by Moody’s or the equivalent or higher of either such rating by another rating agency
acceptable 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
Borrower 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.

     “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 Borrower, 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
Borrower 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 Borrower 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 Borrower 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 Borrower or any ERISA Affiliate of any notice, or the
receipt by any Multiemployer Plan from the Borrower 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.

-7-

 

     “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
LIBO Rate.

     “Event of Default” has the meaning set forth in Article VII.

     “Excluded Subsidiary” means:

     (a) a Subsidiary (i) holding title to assets which are or are to become collateral for any
Indebtedness that (A) is (or is to be) secured by a Lien on property of such Subsidiary (“Secured
Indebtedness”) and (B) is permitted to be incurred pursuant to this Agreement and (ii) which is
prohibited from Guaranteeing the Indebtedness of any other Person pursuant to (x) any document,
instrument or agreement evidencing or securing such Secured Indebtedness or (y) a provision of such
Subsidiary’s organizational documents which provision was included in such Subsidiary’s
organizational documents as a condition to the extension of such Secured Indebtedness; or

     (b) a Subsidiary that has no assets (or only a nominal amount of assets); or

     (c) a Subsidiary whose assets consist solely of direct or indirect Joint Venture Holdings
issued by Joint Ventures that own Projects subject to mortgage Liens; or

     (d) a Subsidiary that is not incorporated or organized under the laws of any state of the
United States or the District of Columbia and that if such Subsidiary were to become a Guarantor,
doing so would reasonably be expected to have material adverse tax consequences to the Borrower as
a result of the undistributed earnings of such Subsidiary (as determined for United States federal
income tax purposes) being treated as a deemed dividend to such Subsidiary’s United States parent.

The parties agree that Marie-Invest s.p.r.l and its Subsidiaries shall each be an “Excluded
Subsidiary”.

     “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the Issuing Bank
or any other recipient of any payment to be made by or on account of any obligation of the Borrower
hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by the United
States of America, or by 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 the Borrower is located and (c) in the
case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower 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 the Borrower with
respect to such withholding tax pursuant to Section 2.17(a).

-8-

 

     “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 Borrower 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 below) 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 Borrower, by (i) the board of directors of the Borrower 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. For purposes of this definition, 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 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.

     “Federal Funds Effective Rate” means, for any day, the weighted average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers, as published on the next
succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if necessary, to the
next 1/100 of 1%) of the quotations for such day for such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing selected by it.

     “Financial Officer” means, with respect to a Person, the chief financial officer, principal
accounting officer, treasurer or controller of such Person.

-9-

 

     “Financial Statements” means financial statements presenting the consolidated and
consolidating financial position of the Borrower 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 and (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 Borrower and
its Subsidiaries (with appropriate adjustments for minority interests) or allocable to the Borrower
and its Subsidiaries on account of Joint Venture Holdings (but excluding balloon payments of
principal due upon the stated maturity of any Indebtedness), and (c) the aggregate of all dividends
payable on the Borrower’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 the United States of America, any State thereof or the District of Columbia.

     “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.

     “Ground Lease” means a ground lease containing the following terms and conditions: (a) a
remaining term (exclusive of any unexercised extension options) of forty (40) years or more from
the date hereof; (b) the right of the lessee to mortgage and encumber its interest in the leased
property without the consent of the lessor; (c) the obligation of the lessor either (i) to give the
holder of any mortgage Lien on such leased property written notice of any defaults on the part of
the lessee and agreement of such lessor that such lease will not be terminated until such holder
has had a reasonable opportunity to cure or complete foreclosures, and fails to do so or (ii) upon
termination of such ground lease, to enter into a new lease with such lessor containing
substantially the same (or more favorable) terms and conditions as the terms and conditions of such
ground lease; (d) reasonable transferability of the lessee’s interest under such lease, including
ability to sublease; and (e) such other rights customarily required by mortgagees making a loan
secured by the interest of the holder of the leasehold estate demised pursuant to a ground lease or
master lease. The ground leases currently in effect with respect to the following properties will
not be subject to the requirement of clause (a) of this definition:

	 	 	 	 	 	 	 	 	 
	Building ID	 	Tenant	 	Start Date	 	Expiration Date	 	Location
	WA0031
	 	Del Monte Corporation	 	5/1/1996	 	4/30/2016	 	Yakima, WA
	TX0671
	 	McCoy Workplace Solutions, L.P.	 	11/1/2001	 	11/30/2011	 	Houston, TX
	TN0081
	 	Federal Express Corporation	 	2/1/2000	 	1/31/2020	 	Collierville, TN

     “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or
otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any

-10-

 

Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner,
whether directly or indirectly, and including any obligation of the guarantor, 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 any Person that is a party to the Guaranty as a “Guarantor” and in any event
shall include all Subsidiaries of the Borrower as of the Closing Date (including any acquired in
connection with the Merger but excluding any Excluded Subsidiary).

     “Guaranty” means the Guaranty to which the Guarantors are parties substantially in the form of
Exhibit C.

     “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 Borrower 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

-11-

 

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.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Interest Election Request” means a request by the Borrower to convert or continue a Borrowing
in accordance with Section 2.8 and substantially in the form of Exhibit D or other form acceptable
to the Administrative Agent.

     “Interest Payment Date” means the first day of each calendar month.

     “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 Borrower may elect (or such shorter period as
contemplated by clause (iii) below); 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, (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, (iii) the Interest Period for
Eurodollar Borrowings may, if the same is available to all Lenders, be shorter than one (1) month
in order to consolidate two (2) or more Eurodollar Borrowings and (iv) the Interest Period for all
Eurodollar Borrowings shall be one (1) month until the earlier of ninety (90) days after the
Closing Date or the date on which the Arranger completes the syndication of the total Commitments,
as evidenced by written notice from the Arranger to the Borrower as to such completion. 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.

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

     “Issuing Bank” means Wells Fargo Bank, National Association, in its capacity as the issuer of
Letters of Credit hereunder, and its successors in such capacity as provided in Section 2.6(i).
The Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by
Affiliates of the Issuing Bank, in which case the term “Issuing Bank” shall include any such
Affiliate with respect to Letters of Credit issued by such Affiliate.

     “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.

     “Joint Venture Holding” means an interest in a Joint Venture held or owned by the Borrower (or
one of its Subsidiaries) which is not wholly owned by the Borrower (or one of its Subsidiaries).

     “LC Disbursement” means a payment made by the Issuing Bank pursuant to a Letter of Credit.

     “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all
outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements
that have not yet been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of
any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.

     “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 a Lender or an 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 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.

     “Letter of Credit” means any letter of credit issued pursuant to this Agreement.

     “Leverage Ratio” as of any date means the ratio, expressed as a percentage, of the Total
Liabilities as of such date to the Total Value as of such date.

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     “LIBO Rate” means, for any Eurodollar Borrowing for any Interest Period, the rate per annum,
rounded upward, if necessary, to the nearest one one-hundredth of one percent (0.01%) quoted by
Wells Fargo Bank, National Association as the London Interbank Offered Rate for deposits in Dollars
(being the LIBOR Rate quoted by the British Bankers Association for maturities of 1, 2, 3 or 6
months, so long as the same is published and available) at approximately 9:00 a.m. San Francisco,
California time, 2 Business Days prior to the commencement of such Interest Period for purposes of
calculating effective rates of interest for loans or obligations making reference thereto for an
amount approximately equal to such Eurodollar Borrowing and for a period of time approximately
equal to such Interest Period. Each determination of the LIBO Rate by the Administrative Agent
shall, in absence of manifest error, be conclusive and binding.

     “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 Borrower, its Subsidiaries or a Joint
Venture, the lien of a mortgage or deed of trust on the Real Property interest not owned by the
Borrower, its Subsidiaries or the Joint Venture; provided, that the ownership or estate interest of
the Borrower in such Real Property is not subordinate to such a lien and the Borrower’s 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.

     “Loan Parties” means the Borrower and the Guarantors. Schedule 1.1(b) sets forth all of the
Loan Parties as of the date of this Agreement.

     “Loan Documents” means this Agreement, the Notes, the Guaranty and all other instruments,
agreements and written obligations between the Borrower and any of the Lenders pursuant to or in
connection with the transactions contemplated hereby.

     “Loans” means the loans made by the Lenders to the Borrower pursuant to this Agreement.

     “Margin Stock” means “margin stock” or “margin securities” as such terms are defined in
Regulation U and Regulation X of the Board as in effect from time to time.

     “Marketable Securities” means short-term marketable securities, issued by any entity (other
than an Affiliate of the Borrower) 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,
operations, prospects or condition, financial or otherwise, of the Borrower and the Subsidiaries
taken as a whole, (b) the ability of the Borrower to perform any of its material obligations under

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the Loan Documents to which it is a party or (c) the rights of or benefits available to the
Lenders under the Loan Documents

     “Material Indebtedness” means (a) Indebtedness (other than the Loans, Letters of Credit and
Nonrecourse Indebtedness), or obligations in respect of one or more Hedging Agreements, of any one
or more of the Borrower, the other Loan Parties and the other Subsidiaries in an aggregate
principal amount exceeding $10,000,000 and (b) Nonrecourse Indebtedness of any one or more of the
Borrower, the other Loan Parties and the other Subsidiaries in an aggregate principal amount
exceeding $50,000,000. For purposes of determining Material Indebtedness, the “principal amount”
of the obligations of the Borrower, any other Loan Party or any other Subsidiary in respect of any
Hedging Agreement at any time shall be the maximum aggregate amount (giving effect to any netting
agreements) that the Borrower, such other Loan Party or such other Subsidiary would be required to
pay if such Hedging Agreement were terminated at such time.

     “Maturity Date” means November 29, 2009, as such date may be extended pursuant to Section 2.5.

     “Merger” has the meaning set forth in the recitals of this Agreement.

     “Merger Agreement” has the meaning set forth in the recitals of this Agreement.

     “Merger Transactions” means the transactions contemplated by the Merger Agreement, including
without limitation, (a) the sale of assets by CPA 12 to W.P. Carey & Co. LLC pursuant to the Sale
Agreement (as defined in the Merger Agreement); (b) the making of the Special Distribution (as
defined in the Merger Agreement) and (c) the Merger.

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

     “Mortgage Asset” means Indebtedness owed to the Borrower or a Subsidiary and secured by a
mortgage or deed of trust on a fee interest or a leasehold interest in Real Property and all
collateral security related thereto.

     “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 Borrower 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 Borrower as a result of
the sale of common shares, preferred shares, partnership interests, limited liability

-15-

 

company interests, convertible securities or other ownership or equity interests in the
Borrower, less customary costs and discounts of issuance paid by the Borrower.

     “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 securing such
Indebtedness; provided, however, that personal recourse of a holder of Indebtedness against any
obligor with respect thereto for fraud, misrepresentation, misapplication or misappropriation of
cash, waste, environmental liabilities, and other circumstances customarily excluded from
nonrecourse provisions in nonrecourse financing of real estate shall not, by itself, prevent any
Indebtedness from being characterized as Nonrecourse Indebtedness; provided, further, 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 E payable to a Lender,
evidencing certain of the Obligations of the Borrower to such Lender and executed by the Borrower
as set forth in Section 2.10(e), 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 Borrower 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, including reimbursement obligations in respect of Letters of
Credit, 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 the Borrower 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, any Vice President or any
Financial Officer of any Person, or 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.

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

     “Performance Fees” means, for any Person and for any period, performance fees paid by such
Person in equity securities of such Person during such period.

     “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;

     (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 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 Borrower or any Subsidiary; and

     (f) statutory and common law landlord liens;

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

     “Permitted Investments” means:

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

     (b) investments in commercial paper maturing within 270 days from the date of
acquisition thereof and having, at such date of acquisition, a rating of not less than A-2
or P-2 from S&P or from Moody’s, respectively;

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     (c) investments in certificates of deposit, banker’s acceptances and time deposits
maturing within 180 days from the date of acquisition thereof issued or guaranteed by or
placed with, and money market deposit accounts issued or offered by, any domestic office of
any commercial bank organized under the laws of the United States of America or any State
thereof which has a combined capital and surplus and undivided profits of not less than
$500,000,000;

     (d) shares of so called “money market funds” registered with the SEC under the
Investment Company Act of 1940, as amended, which maintain a level per share value, invest
principally in marketable direct or guaranteed obligations of the United States of America
and agencies and instrumentalities thereof and investments in commercial paper having, at
such date, a rating of not less than A-1 or P-1 from S&P or from Moody’s, respectively, and
have total assets in excess of $50,000,000 provided that any such shares are moved to a
qualifying money market fund within thirty (30) days after the Borrower or any Subsidiary
has knowledge that any money market fund no longer has total assets in excess of that
amount;

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

     (f) short-term investments in cash equivalents issued by, or maintained with, a Person
not formed under the laws of the United States of America or any State thereof and made in
accordance with the Borrower’s customary investment practices for cash management needs of
the Borrower and its Subsidiaries.

     “Permitted REIT Investments” means investments by the Borrower 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 Borrower 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.

     “Prime Rate” means the rate of interest per annum publicly announced from time to time by the
Lender then acting as Administrative Agent as its prime rate in effect at its principal office;
each change in the Prime Rate shall be effective from and including the date such change is
publicly announced as being effective.

     “Project” means any office, industrial/manufacturing facility, educational facility, retail
facility, distribution/warehouse facility, assembly or production facility, hotel, day care center,

-18-

 

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

     “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 the 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 the 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.

     “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 66-2/3% of the sum of the total Revolving Credit Exposures and
Unused Commitments at such time, and in any event shall include the Lender then acting as
Administrative Agent; provided, that, in the event any Lender shall have failed to fund its
Applicable Percentage of any Borrowing requested by the Borrower 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 66-2/3% of the sum of the total Revolving Credit Exposures and Unused
Commitments of such Lenders at such time, and in any event shall include the Lender then acting as
Administrative Agent. At all times during which there are two (2) or more Lenders party hereto
(excluding all Lenders whose failure to fund their respective Applicable

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Percentages of such Borrowings have not been cured), “Required Lenders” must include at least
two (2) Lenders.

     “Restricted Payment” has the meaning set forth in Section 6.1(g).

     “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 and its LC Exposure at such time.

     “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 (excluding Indebtedness
hereunder).

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

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

     (ii) 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

     (iii) 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

     (iv) 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.

     “Subsidiary” means any direct or indirect subsidiary of the Borrower.

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

-20-

 

     “Tenant Allowance” means a cash allowance paid to a tenant by the landlord pursuant to a
Lease.

     “TI Work” means any construction or other “build-out” of tenant leasehold improvements to the
space demised to such tenant under Leases (excluding such tenant’s furniture, fixtures and
equipment) performed pursuant to the terms of such Leases, whether or not such tenant improvement
work is performed by or on behalf of the landlord or as part of a Tenant Allowance.

     “Total Interest Expense” means, for any period, the sum, without duplication, of (i) interest
expense of the Borrower and its Subsidiaries paid during such period (with appropriate adjustments
for minority interests) and (ii) interest expense of the Borrower and its Subsidiaries accrued
and/or capitalized for such period (with appropriate adjustments for minority interests) and (iii)
the portion of the interest expense of Joint Ventures allocable to the Borrower and its
Subsidiaries in accordance with GAAP on account of ownership of Joint Venture Holdings and paid
during such period and (iv) the portion of the interest expense of Joint Ventures allocable to the
Borrower and its Subsidiaries in accordance with GAAP on account of ownership of Joint Venture
Holdings and accrued and capitalized for such period, in each case including participating interest
expense but excluding extraordinary interest expense, and net of amortization of deferred costs
associated with new financings or refinancings of existing Indebtedness.

     “Total Liabilities” means, as of a given date, all liabilities which would, in conformity with
GAAP, be properly classified as a liability on a consolidated balance sheet of the Borrower and its
consolidated Subsidiaries as of such date, and in any event shall include (without duplication):
(a) Total Outstanding Indebtedness; (b) the amount of preferred equity interests of the Borrower
and its consolidated Subsidiaries; (c) all purchase and repurchase obligations and forward
commitments of such Person to the extent such obligations or commitments are evidenced by a binding
purchase agreement (forward commitments shall include without limitation (i) forward equity
commitments and (ii) commitments to purchase any real property under development, redevelopment or
renovation); and (d) all liabilities and obligations of the Borrower, its consolidated Subsidiaries
or any other Person in respect of “off-balance sheet arrangements” (as defined in Item
303(a)(4)(ii) of Regulation S-K promulgated under the Securities Act of 1933, as amended) which the
Borrower would be required to disclose in the “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” section of the Borrower’s report on Form 10-Q or Form 10-K (or
their equivalents) which the Borrower is required to file with the Securities and Exchange
Commission (or any Governmental Authority substituted therefor).

     “Total Outstanding Indebtedness” means, as of any date, the sum, without duplication, of (i)
the amount of Indebtedness of the Borrower and its Subsidiaries set forth on the then most recent
quarterly financial statements of the Borrower, prepared in accordance with GAAP, plus any
additional Indebtedness incurred by the Borrower and its Subsidiaries since the time of such
statements (with appropriate adjustments for minority interests) and (ii) the outstanding amount of
Joint Venture Indebtedness allocable in accordance with GAAP on account of ownership of Joint
Venture Holdings to any of the Borrower and its Subsidiaries as of the time of determination (with
appropriate adjustments for minority interests) and (iii) the Contingent

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Obligations of the Borrower and its Subsidiaries and, to the extent allocable to the Borrower
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 Value” means, as of any date, the sum, without duplication, of (i) in respect of
Projects owned or leased pursuant to a Ground Lease by the Borrower and its Subsidiaries for at
least four (4) fiscal quarters, the Adjusted EBITDA of the Borrower and its Subsidiaries
attributable to such Projects as of the last day of the fiscal quarter immediately preceding the
fiscal quarter in which such date occurs for the previous four (4) consecutive fiscal quarters
divided by 8.5%; (ii) the investment (at cost without depreciation) in Projects owned or leased
pursuant to a Ground Lease by the Borrower and its Subsidiaries for fewer than four fiscal quarters
(with appropriate adjustments for minority interests); (iii) the investment (at cost without
depreciation) in Joint Venture Holdings for fewer than four fiscal quarters which is allocable to
the Borrower and its Subsidiaries based on their ownership interests in the related Joint Ventures
in accordance with GAAP (with appropriate adjustments for minority interests); (iv) unrestricted
Cash and Cash Equivalents which would be included on the Consolidated Businesses’ consolidated
balance sheet as of such date (with appropriate adjustments for minority interests); (v) Real
Property under construction of the Borrower and its consolidated Subsidiaries valued at cost; (vi)
the Fair Market Value of all Marketable Securities held by the Borrower and its Subsidiaries, and
(vii) investments in notes secured by mortgages on the real property of any Person valued at the
book value stated on the most recent financial statement. For purposes of this definition, when
determining how long the Borrower or one of its Subsidiaries has owned or leased a Project that was
owned or leased by CPA 12 or one of its subsidiaries at the time of the Merger, the Borrower or its
applicable Subsidiary shall be deemed to have owned or leased such Project from the date CPA 12 or
its applicable Subsidiary first owned or leased such Project.

     “Transactions” means the execution, delivery and performance by the Borrower of this
Agreement, the borrowing of Loans, the use of the proceeds thereof, the issuance of Letters of
Credit hereunder and the execution, delivery and performance by the Borrower or the Subsidiaries
(who may be parties to the Loan Documents) of the other Loan Documents, and the transactions
contemplated by the Loan Documents.

     “Transfer Authorizer Designation Form” means a form substantially in the form of Exhibit J to
be delivered to the Administrative Agent pursuant to Section 4.1, as the same may be amended,
restated or modified from time to time.

     “Triple Net Lease” means a Lease representing all or substantially all of the rentable area of
a Property where the tenant is responsible for real estate taxes and assessments, repairs and
maintenance, insurance and other expenses relating to such Property, provided, that adequate
insurance is maintained for such Property either by the tenant, the Borrower, a Subsidiary or a
Joint Venture. Notwithstanding the foregoing, a Triple Net Lease may be subject to the landlord’s
express contractual obligations with respect to the payment of taxes, assessments, ground rents,
utility charges, exterior maintenance and maintenance of all non-interior areas and any capital
expenditures related thereto (such as roof, structure and parking) (the “Contractual Obligations”)
so long as the capital expenditures have been adequately accounted for in accordance with GAAP;
provided, that the projected average annual Contractual Obligations

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shall not exceed 10% of the projected average gross annual rent under such Lease. For
purposes of this definition, (a) the obligation of a landlord to make capital improvements or
repairs as a condition to a tenant’s occupancy (e.g., build to suit transactions) shall not be
deemed to be an undertaking by such landlord of any tenant maintenance or repair obligations and
(b) the improvements to be constructed by such landlord described in the immediately preceding
clause (a) shall not be included as a capital expenditure.

     “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
LIBO Rate or the Alternate Base Rate.

     “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.

     “Unsecured Indebtedness” means any Indebtedness not secured by a Lien, including any
Indebtedness hereunder but excluding, to the extent otherwise includable therein, any Indebtedness
in respect of Guarantees of Nonrecourse Carveouts.

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

     “Unused Commitment Fee Rate” means the applicable rate per annum set forth below under the
caption “Unused Commitment Fee Rate” corresponding to the applicable Average Unused Commitment
Percentage in accordance with the following table:

	 	 	 	 	 
	 	 	Unused Commitment Fee
	Average Unused Commitment Percentage	 	Rate
	less than or equal to 50%
	 	 	0.125	%
	greater than 50%
	 	 	0.175	%

     “Wells Fargo” means Wells Fargo Bank, National Association and its successors and assigns.

     “wholly-owned Subsidiary” means, with respect to any Person, at any date, any subsidiary of
such Person of which 100% of the outstanding shares of capital stock or other equity interests
having ordinary voting power is at the time, directly or indirectly, owned by such Person.

     “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.

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     “WP Carey Joint Venture” means a Joint Venture between the Borrower and (a) W.P. Carey & Co.
LLC (or one of its wholly-owned subsidiaries) or (b) a CPA REIT managed by W.P. Carey & Co. LLC or
one of its subsidiaries.

     SECTION 1.2. Classification of Loans and Borrowings. For purposes of this Agreement,
Loans may be classified and referred to by Type (e.g., a “Eurodollar Loan”). Borrowings also may
be classified and referred to by Type (e.g., a “Eurodollar Borrowing”).

     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 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 Borrower notifies the Administrative Agent that the
Borrower 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 Borrower 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 Borrower from time to time during the Availability
Period in an aggregate principal amount that will not result in (a) such Lender’s Revolving Credit
Exposure exceeding such Lender’s Commitment or (b) the sum of the total Revolving Credit Exposures
exceeding the total Commitments at such time. Within the

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foregoing limits and subject to the terms and conditions set forth herein, the Borrower 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 Borrowing shall be comprised entirely of ABR Loans or
Eurodollar Loans as the 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 the
Borrower to repay such Loan in accordance with the terms of this Agreement.

     (c) At the commencement of each Interest Period for any Eurodollar 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 Borrowing is 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
Borrowing may be in an aggregate amount that is equal to the entire unused balance of the total
Commitments or that is required to finance the reimbursement of an LC Disbursement as contemplated
by Section 2.6(e). 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 Borrowings outstanding.

     (d) Notwithstanding any other provision of this Agreement, the 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 Borrowings. To request a Borrowing, the Borrower shall
notify the Administrative Agent of such request by telephone (a) in the case of a Eurodollar
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; provided that any such
notice of an ABR Borrowing to finance the reimbursement of an LC Disbursement as contemplated by
Section 2.6(e) may be given not later than 10:00 a.m., New York City time, on 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 B and signed by the Borrower. Each such
request shall be accompanied by an Officer’s Certificate as to pro forma financial covenant
compliance required by Section 6.1(i). 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

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been satisfied on such date and will be satisfied on the date of such Borrowing (except, in
each case, to the extent waived in accordance with Section 9.2):

     (i) the aggregate amount of the requested Borrowing;

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

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

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

     (v) the location and number of the 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 Borrowing is specified, then the requested Borrowing shall be an
ABR Borrowing. If no Interest Period is specified with respect to any requested Eurodollar
Borrowing, then the Borrower 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.

     SECTION 2.4. [Reserved].

     SECTION 2.5. Extension of Maturity Date.

     So long as no Default has occurred and is continuing, the Borrower may elect, at least 60 days
but no more than 120 days prior to the Maturity Date, to extend the Maturity Date for one (1) year
by providing written notice of such election to the Administrative Agent (which shall promptly
notify each of the Lenders). If (i)(A) on the date of such notice and the effective date of such
extension, no Default exists and is continuing and (B) each of the representations and warranties
made in this Agreement and the other Loan Documents is true and complete on and as of the date of
the date of such notice and the effective date of such extension with the same force and effect as
if made on and as of such date (or, if any such representation or warranty is expressly stated to
have been made as of a specific date, as of such specific date), (ii) the Borrower pays to the
Administrative Agent, for the pro rata benefit of the Lenders based on their Applicable
Percentages, an extension fee equal to 0.15% of the then total Commitments, and (iii) the Borrower
has given written notice to the Administrative Agent of such election to extend the Maturity Date
within the time frame set forth in this Section 2.5, the Maturity Date shall be extended by one
year. The Borrower may exercise its rights under this Section only twice.

     SECTION 2.6. Letters of Credit. (a) General. Subject to the terms and
conditions set forth herein, the Borrower may request the issuance of Letters of Credit for its own
account, in a form reasonably acceptable to the Administrative Agent and the Issuing Bank, at any
time and from time to time during the period commencing on the Closing Date and ending on the date
that is 30 days prior to the Maturity Date, provided that the amount of each Letter of Credit so
requested shall be not less than $300,000 and there may not be more than 5 Letters of Credit
outstanding at any time. In the event of any inconsistency between the terms and conditions of

-26-

 

this Agreement and the terms and conditions of any form of letter of credit application or
other agreement submitted by the Borrower to, or entered into by the Borrower with, the Issuing
Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control.

     (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request
the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter
of Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic communication,
if arrangements for doing so have been approved by the Issuing Bank and the Administrative Agent)
to the Issuing Bank and the Administrative Agent (at least four (4) Business Days in advance of the
requested date of issuance, amendment, renewal or extension) a notice requesting the issuance of a
Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, the date
of issuance, amendment, renewal or extension, the date on which such Letter of Credit is to expire
(which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the
name and address of the beneficiary thereof and such other information as shall be necessary to
prepare, amend, renew or extend such Letter of Credit. Each such notice shall be accompanied by an
Officer’s Certificate as to pro forma financial covenant compliance required by Section 6.1(i).
The Administrative Agent shall provide copies of such notice and Officer’s Certificate to each
Lender promptly after receipt thereof. If requested by the Issuing Bank, the Borrower also shall
submit a letter of credit application on the Issuing Bank’s standard form in connection with any
request for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended
only if (and upon issuance, amendment, renewal or extension of each Letter of Credit the Borrower
shall be deemed to represent and warrant that), after giving effect to such issuance, amendment,
renewal or extension (i) the LC Exposure shall not exceed $25,000,000 and (ii) the sum of the total
Revolving Credit Exposures shall not exceed the total Commitments at such time.

     (c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of
business on the earlier of (i) the date one year after the date of the issuance of such Letter of
Credit (or, in the case of any renewal or extension thereof, one year after such renewal or
extension) and (ii) the date that is 30 days prior to the Maturity Date.

     (d) Participations. By the issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing the amount thereof) and without any further action on the part of the
Issuing Bank or the Lenders, the Issuing Bank hereby grants to each Lender, and each Lender hereby
acquires from the Issuing Bank, a participation in such Letter of Credit equal to such Lender’s
Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit.
In consideration and in furtherance of the foregoing, each Lender hereby absolutely and
unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank,
such Lender’s Applicable Percentage of each LC Disbursement made by the Issuing Bank and not
reimbursed by the Borrower on the date due as provided in paragraph (e) of this Section, or of any
reimbursement payment required to be refunded to the Borrower for any reason. Each Lender
acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in
respect of Letters of Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or
the occurrence and continuance of a Default or reduction or termination of the Commitments, and
that each such payment shall be made without any offset, abatement, withholding or reduction
whatsoever. Notwithstanding anything to the contrary set forth herein,

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the aggregate amount to be paid by any Lender with respect to any drawing under a Letter of
Credit (whether as a payment pursuant to this Section 2.6(d) or a Loan pursuant to Section 2.3)
shall not exceed its Applicable Percentage of such drawing.

     (e) Reimbursement. If the Issuing Bank shall make any LC Disbursement in respect of a
Letter of Credit, the Borrower shall reimburse such LC Disbursement by paying to the Administrative
Agent an amount equal to such LC Disbursement not later than 12:00 noon, New York City time, on the
date that such LC Disbursement is made, if the Borrower shall have received notice of such LC
Disbursement prior to 10:00 a.m., New York City time, on such date, or, if such notice has not been
received by the Borrower prior to such time on such date, then not later than 12:00 noon, New York
City time, on (i) the Business Day that the Borrower receives such notice, if such notice is
received prior to 10:00 a.m., New York City time, on the day of receipt, or (ii) the Business Day
immediately following the day that the Borrower receives such notice, if such notice is not
received prior to such time on the day of receipt; provided that the Borrower may, subject to the
conditions to borrowing set forth herein, request in accordance with Section 2.3 that such payment
be financed with an ABR Borrowing in an equivalent amount and, to the extent so financed, the
Borrower’s obligation to make such payment shall be discharged and replaced by the resulting ABR
Borrowing. If the Borrower fails to (or is not permitted to) finance such payment with an ABR
Borrowing and fails to make such payment when due, the Administrative Agent shall notify each
Lender of the applicable LC Disbursement, the payment then due from the Borrower in respect thereof
and such Lender’s Applicable Percentage thereof. Promptly following receipt of such notice, each
Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from
the Borrower, in the same manner as provided in Section 2.7 with respect to Loans made by such
Lender (and Section 2.7 shall apply, mutatis mutandis, to the payment obligations of the Lenders),
and the Administrative Agent shall promptly pay to the Issuing Bank the amounts so received by it
from the Lenders. Promptly following receipt by the Administrative Agent of any payment from the
Borrower pursuant to this paragraph, the Administrative Agent shall distribute such payment to the
Issuing Bank or, to the extent that Lenders have made payments pursuant to this paragraph to
reimburse the Issuing Bank, then to such Lenders and the Issuing Bank as their interests may
appear. Any payment made by a Lender pursuant to this paragraph to reimburse the Issuing Bank for
any LC Disbursement (other than the funding of ABR Loans as contemplated above) shall not
constitute a Loan and shall not relieve the Borrower of its obligation to reimburse such LC
Disbursement.

     (f) Obligations Absolute. The Borrower’s obligation to reimburse LC Disbursements as
provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and
shall be performed strictly in accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any
Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other
document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any
respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by the
Issuing Bank under a Letter of Credit against presentation of a draft or other document that does
not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of
this Section, constitute a legal or equitable discharge of, or provide a right of setoff against,
the Borrower’s obligations hereunder. Neither the Administrative Agent, the Lenders nor the
Issuing Bank, nor any of their Related Parties, shall have any liability or responsibility by
reason

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of or in connection with the issuance or transfer of any Letter of Credit or any payment or
failure to make any payment thereunder (irrespective of any of the circumstances referred to in the
preceding sentence), or any error, omission, interruption, loss or delay in transmission or
delivery of any draft, notice or other communication under or relating to any Letter of Credit
(including any document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of the Issuing Bank;
provided that the foregoing (and the agreement of the Borrower in the first sentence of this
Section 2.6(f)) shall not be construed to excuse the Issuing Bank from liability to the Borrower to
the extent of any direct damages (as opposed to consequential damages, claims in respect of which
are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the
Borrower that are caused by the Issuing Bank’s failure to exercise care when determining whether
drafts and other documents presented under a Letter of Credit comply with the terms thereof. The
parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on
the part of the Issuing Bank (as finally determined by a court of competent jurisdiction), the
Issuing Bank shall be deemed to have exercised care in each such determination. In furtherance of
the foregoing and without limiting the generality thereof, the parties agree that, with respect to
documents presented which appear on their face to be in substantial compliance with the terms of a
Letter of Credit, the Issuing Bank may, in its sole discretion, either accept and make payment upon
such documents without responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such documents if such
documents are not in strict compliance with the terms of such Letter of Credit.

     (g) Disbursement Procedures. The Issuing Bank shall, promptly following its receipt
thereof, examine all documents purporting to represent a demand for payment under a Letter of
Credit. The Issuing Bank shall promptly notify the Administrative Agent and the Borrower by
telephone (confirmed by telecopy) of such demand for payment and whether the Issuing Bank has made
or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving
such notice shall not relieve the Borrower of its obligation to reimburse the Issuing Bank and the
Lenders with respect to any such LC Disbursement nor shall the Issuing Bank have any liability
whatsoever to the Borrower or the Lenders for any failure to give any such notice.

     (h) Interim Interest. If the Issuing Bank shall make any LC Disbursement, then,
unless the Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement
is made, the unpaid amount thereof shall bear interest, for each day from and including the date
such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC
Disbursement, at the rate per annum then applicable to ABR Loans; provided that, if the Borrower
fails to reimburse such LC Disbursement when due pursuant to paragraph (e) of this Section, then
Section 2.13(c) shall apply. Interest accrued pursuant to this paragraph shall be for the account
of the Issuing Bank, except that interest accrued on and after the date of payment by any Lender
pursuant to paragraphs (d) or (e) of this Section to reimburse the Issuing Bank shall be for the
account of such Lender to the extent of such payment.

     (i) Replacement of the Issuing Bank. The Issuing Bank may be replaced at any time by
written agreement among the Borrower, the Administrative Agent, the replaced Issuing Bank and the
successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement
of the Issuing Bank. At the time any such replacement shall become effective, the

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Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank
pursuant to Section 2.12(b). From and after the effective date of any such replacement, (i) the
successor Issuing Bank shall have all the rights and obligations of the Issuing Bank under this
Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to
the term “Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank,
or to such successor and all previous Issuing Banks, as the context shall require. After the
replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and
shall continue to have all the rights and obligations of an Issuing Bank under this Agreement with
respect to Letters of Credit issued by it prior to such replacement, but shall not be required to
issue additional Letters of Credit.

     (j) Cash Collateralization. If any Event of Default shall occur and be continuing, on
the Business Day that the Borrower receives notice from the Administrative Agent or the Required
Lenders (or, if the maturity of the Loans has been accelerated, Lenders with LC Exposure
representing at least 66-2/3% of the total LC Exposure) demanding the deposit of cash collateral
pursuant to this paragraph, the Borrower shall deposit in an account with the Administrative Agent,
in the name of the Administrative Agent and for the benefit of the Issuing Bank and the Lenders, an
amount in cash equal to the LC Exposure as of such date plus any accrued and unpaid interest
thereon; provided that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without demand or other
notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower
described in clause (h) or (i) of Article VII. Such deposit shall be held by the Administrative
Agent as collateral for the payment and performance of the obligations of the Borrower under this
Agreement. The Administrative Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such account. Other than any interest earned on the investment
of such deposits, which investments shall be made at the option and sole discretion of the
Administrative Agent and at the Borrower’s risk and expense, such deposits shall not bear interest.
Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such
account shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC
Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held
for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such
time or, if the maturity of the Loans has been accelerated (but subject to the consent of the
Lenders with LC Exposure representing at least 66-2/3% of the total LC Exposure), be applied to
satisfy other obligations of the Borrower under this Agreement. If the Borrower has provided an
amount of cash collateral hereunder as a result of the occurrence of an Event of Default, such
amount (to the extent not applied as aforesaid) shall be returned to the Borrower within three
Business Days after all Events of Default have been cured or waived in accordance with the terms of
this Agreement.

     SECTION 2.7. Funding of Borrowings. (a) Each Lender shall make each 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 Loans
available to the Borrower by promptly crediting the amounts so received, in like funds, to an
account specified by the Borrower in the Transfer Authorizer Designation Form; provided that ABR
Loans made to finance the reimbursement of an LC

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Disbursement as provided in Section 2.6(e) shall be remitted by the Administrative Agent to
the Issuing Bank.

     (b) Unless the Administrative Agent shall have received written notice from a Lender prior to
the proposed date of any 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 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 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 the 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 Effective Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation or (ii) in the case of the 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 Loan included in such Borrowing as of the date of such
Borrowing. If any interest is paid by the Borrower as described above for any period with respect
to any amount funded by the Administrative Agent pursuant to this paragraph, the 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 Borrowing initially shall be of the Type
specified in the applicable Borrowing Request and, in the case of a Eurodollar Borrowing, shall
have an initial Interest Period as specified in such Borrowing Request. Thereafter, the Borrower
may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the
case of a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this
Section; provided, however, that a Eurodollar Borrowing may only be continued on the last day of
the then current Interest Period therefor. The Borrower may elect different options with respect
to different portions of the affected Borrowing, in which case each such portion shall be allocated
ratably among the Lenders 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 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 the Borrower was requesting a 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.

     (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

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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
Borrowing; and

     (iv) if the resulting Borrowing is a Eurodollar 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 Borrowing but does not specify an
Interest Period, then the Borrower 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 Borrower fails to deliver a timely Interest Election Request with respect to a
Eurodollar 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 Borrower, then, so long as an Event of Default is continuing (i) no
outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless
repaid, each Eurodollar Borrowing shall automatically be converted to an ABR Borrowing at the end
of the Interest Period applicable thereto.

     SECTION 2.9. Termination and Reduction of Commitments. (a) Unless previously
terminated, the Commitments shall terminate on the Maturity Date.

     (b) The Borrower 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 $1,000,000 and not less than $10,000,000, (ii) the Borrower 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 Borrower shall not reduce the total Commitments to an amount less than
$100,000,000 unless the Commitments are terminated.

     (c) The Borrower 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 notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this Section
shall be irrevocable; provided that a notice of termination of the Commitments delivered by the

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Borrower may state that such notice is conditioned upon the effectiveness of other credit
facilities, in which case such notice may be revoked by the Borrower (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 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) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such
Lender, including the amounts of principal and interest payable and paid to such Lender from time
to time hereunder.

     (c) 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 the Borrower
to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent
hereunder for the account of the Lenders and each Lender’s share thereof.

     (d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this
Section shall be prima facie evidence of the existence and amounts of the obligations 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 Borrower to
repay the Loans in accordance with the terms of this Agreement.

     (e) Any Lender may request that Loans made by it be evidenced by a Note. In such event, the
Borrower 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 Borrower 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.

     (b) The Borrower shall notify the Administrative Agent by telephone (confirmed by telecopy) of
any prepayment hereunder (i) in the case of prepayment of a Eurodollar 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 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

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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 Borrowing, the
Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of
any Borrowing shall be in an amount that would be permitted in the case of an advance of a
Borrowing of the same Type as provided in Section 2.2. Each prepayment of a 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) If at any time from and after the Closing Date: (i) the Borrower merges or consolidates
with another Person and the Borrower is not the surviving entity, or (ii) any Person and the
Borrower or a Subsidiary merge into the Borrower or a Subsidiary in a transaction in which the
Borrower or a Subsidiary is the surviving corporation and an Event of Default has occurred as a
result thereof (the date either such event shall occur being the “Prepayment Date”), the Borrower
shall be required to prepay the Loans in their entireties as if the Prepayment Date were the
Maturity Date and the Commitments thereupon shall be terminated. The Borrower shall immediately
make such prepayment together with the interest accrued to the date of the prepayment on the
principal amount prepaid and shall return or cause to be returned all Letters of Credit to the
Issuing Bank. In connection with the prepayment of any Loan prior to the maturity thereof, the
Borrower shall also pay any applicable expenses pursuant to Section 2.16. Each such prepayment
shall be applied to prepay ratably the Loans of the Lenders. Amounts prepaid pursuant to this
clause (c) may not be reborrowed.

     (d) The Borrower 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 Commitment of each Lender terminates, the Borrower agrees 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 average 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 pursuant to this
subsection (a) shall be computed on the basis of a year of 360 days and shall be payable for the
actual number of days elapsed (including the first day but excluding the last day).

     (b) The Borrower agrees to pay (i) to the Administrative Agent for the account of each Lender
a participation fee with respect to its participations in Letters of Credit, which shall accrue at
the same Applicable Rate as interest on Eurodollar Loans on the average daily amount of such
Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements)
during the period from and including the Closing Date to but excluding the later of the date on
which such Lender’s Commitment terminates and the date on which such Lender ceases to have any LC
Exposure, and (ii) to the Issuing Bank a fronting fee, which shall accrue at the rate of 0.125% per
annum on the average daily amount of the LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and

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including the Closing Date to but excluding the later of the date of termination of the
Commitments and the date on which there ceases to be any LC Exposure, as well as the Issuing Bank’s
standard fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit
or processing of drawings thereunder. Participation fees and fronting fees accrued from and
including the Closing Date or the last day of the preceding March, June, September or December, as
applicable, to and excluding the last Business Day of March, June, September and December of each
year shall be payable, in the case of participation fees, on such last Business Day of such month,
in the case of fronting fees, on the third day Business Day following such last Business Day, and
in each case, commencing on the first such date to occur after the Closing Date; provided that all
such fees shall be payable on the date on which the Commitments terminate and any such fees
accruing after the date on which the Commitments terminate shall be payable on demand. Any other
fees payable to the Issuing Bank pursuant to this paragraph shall be payable within 10 days after
demand. All participation fees and fronting fees shall be computed on the basis of a year of 360
days and shall be payable for the actual number of days elapsed (including the first day but
excluding the last day).

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

     (d) All fees payable hereunder shall be paid on the dates due, in immediately available funds,
to the Administrative Agent (or to the Issuing Bank, in the case of fees payable to it) for
distribution, in the case of fees pursuant to paragraph (a) above and participation fees, 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 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 Borrower 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, in the case of Revolving Loans, 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

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prepayment of an ABR 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 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 interest hereunder shall be computed on the basis of a year of 360 days, and in each
case shall be payable for the actual number of days elapsed (including the first day but excluding
the last day). The applicable Alternate Base Rate or LIBO Rate shall be determined by the
Administrative Agent, and such determination shall be conclusive 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 LIBO Rate for
such Interest Period; or

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

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by
telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent
notifies the Borrower 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 Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective, and (ii) if any
Borrowing Request requests a Eurodollar 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 (including without limitation, Regulation D of the Board or other similar reserve
requirement applicable to any other category of liabilities or category of extensions of
credit or other assets by reference to which the interest rate on Eurodollar Borrowings is
determined) or the Issuing Bank; or

     (ii) impose on any Lender or the Issuing Bank or the London interbank market any other
condition affecting this Agreement or Eurodollar Loans made by such Lender or any Letter of
Credit or participation therein;

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
increase the cost to such Lender or the Issuing Bank of participating in, issuing or maintaining
any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or
the Issuing Bank hereunder (whether of principal, interest or otherwise), then the Borrower will

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pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as
will compensate such Lender or the Issuing Bank, as the case may be, for such additional costs
incurred or reduction suffered.

     (b) If any Lender or the Issuing Bank 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 or the
Issuing Bank’s capital or on the capital of such Lender’s or the Issuing Bank’s holding company, if
any, as a consequence of this Agreement or the Loans made by, or participations in Letters of
Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below
that which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company
could have achieved but for such Change in Law (taking into consideration such Lender’s or the
Issuing Bank’s policies and the policies of such Lender’s or the Issuing Bank’s holding company
with respect to capital adequacy), then from time to time the Borrower will pay to such Lender or
the Issuing Bank, as the case may be, such additional amount or amounts as will compensate such
Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company for any such
reduction suffered.

     (c) A certificate of a Lender or the Issuing Bank setting forth the amount or amounts
necessary to compensate such Lender or the Issuing Bank or its holding company, as the case may be,
as specified in paragraph (a) or (b) of this Section shall be delivered to the Borrower and shall
be conclusive absent manifest error. The Borrower shall pay such Lender or the Issuing Bank, as
the case may be, 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 or the Issuing Bank to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s right
to demand such compensation; provided that the Borrower shall not be required to compensate a
Lender or the Issuing Bank pursuant to this Section for any increased costs or reductions incurred
more than 270 days prior to the date that such Lender or the Issuing Bank, as the case may be,
notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of
such Lender’s or the Issuing Bank’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 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 by the Borrower
pursuant to Section 2.19, then, in any such event, the Borrower shall pay to the Administrative
Agent for the account of each Lender, upon request of the Administrative Agent, such amount or
amounts as the Administrative Agent shall determine in its sole discretion to be sufficient to
compensate each Lender for the loss, cost and expense attributable to such event. In the case of a
Eurodollar

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Loan, such loss, cost or expense to any Lender shall include an amount determined by the
Administrative Agent 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 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. The Borrower shall
pay to the Administrative Agent such amount as determined by the Administrative Agent within 10
days after the request for payment from the Administrative Agent.

     SECTION 2.17. Taxes. (a) Any and all payments by or on account of any obligation of
the Borrower hereunder shall be made free and clear of and without deduction for any Indemnified
Taxes or Other Taxes; provided that if the Borrower shall be required to deduct any Indemnified
Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary
so that after making all required deductions (including deductions applicable to additional sums
payable under this Section) the Administrative Agent, each Lender or the Issuing Bank (as the case
may be) receives an amount equal to the sum it would have received had no such deductions been
made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable law.

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

     (c) The Borrower shall indemnify the Administrative Agent, each Lender and the Issuing Bank,
within 10 days after written demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes paid by the Administrative Agent, such Lender or the Issuing Bank, as the case may be, on or
with respect to any payment by or on account of any obligation of the Borrower hereunder (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under
this Section) 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 Borrower by a Lender or the Issuing Bank, or by the Administrative Agent
on its own behalf or on behalf of a Lender or the Issuing Bank, shall be conclusive absent manifest
error.

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

     (e) Prior to the date that any Foreign Lender becomes a party hereto, such Foreign Lender
shall furnish the Administrative Agent and the Borrower with a properly executed copy

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of either Internal Revenue Service Form W-8ECI or Internal Revenue Service Form W-8BEN and
either Internal Revenue Service Form W-8 or Internal Revenue Service Form W-9 and any additional
form (or such other form) as is necessary to claim complete exemption from United States
withholding taxes on all payments hereunder. At all times each Foreign Lender shall own or
beneficially own a Note, such Foreign Lender shall (i) promptly provide to the Administrative Agent
and Borrower a new Internal Revenue Service Form W-8ECI or Internal Revenue Service Form W-8BEN and
Internal Revenue Service Form W-8 or Internal Revenue Service Form W-9 and any additional form (or
such other form) (or any successor form or forms) upon the expiration or obsolescence of any
previously delivered form and comparable statements in accordance with applicable United States
laws and regulations and amendments duly executed and completed by such Lender, and (ii) comply at
all times with all applicable United States laws and regulations, including all provisions of any
applicable tax treaty, with regard to any withholding tax exemption claimed with respect to any
payments hereunder. If any Foreign Lender cannot deliver the forms referred to in the preceding
sentence, then Borrower may withhold from payments due under the Loan Documents such amounts as
Borrower is able to determine from accurate information provided by such Foreign Lender are
required by the Internal Revenue Code.

     SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs. (a) The
Borrower shall make each payment required to be made by it hereunder (whether of principal,
interest, fees or reimbursement of LC Disbursements, 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 available funds, without set-off or counterclaim. Any amounts received after such time
on any date may, in the discretion of the Administrative Agent, be deemed to have been received on
the next succeeding Business Day for purposes of calculating interest thereon. All such payments
shall be made to the Administrative Agent at its offices at 2120 E. Park Place, Suite 100, El
Segundo, California (or such other location for payment as the Administrative Agent may notify the
Borrower), except payments to be made directly to the Issuing Bank as expressly provided herein 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 at any time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then
due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest
and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed
LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with
the amounts of principal and unreimbursed LC Disbursements then due to such parties.

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     (c) 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 or participations in LC Disbursements resulting to such Lender receiving
payment of a greater proportion of the aggregate amount of its Revolving Loans and participations
in LC Disbursements 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 and participations in LC Disbursements 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 and
participations in LC Disbursements; 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
Borrower 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 or participations in LC Disbursements to any assignee or participant, other than to the
Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall
apply). The Borrower consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of the Borrower in the amount
of such participation.

     (d) Unless the Administrative Agent shall have received notice from the Borrower prior to the
date on which any payment is due to the Administrative Agent for the account of the Lenders or the
Issuing Bank hereunder that the Borrower will not make such payment, the Administrative Agent may
assume that the Borrower has made such payment on such date in accordance herewith and may, in
reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be,
the amount due. In such event, if the Borrower has not in fact made such payment, then each of the
Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative
Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank 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 Effective Rate
and a rate determined by the Administrative Agent in accordance with banking industry rules on
interbank compensation.

     (e) If for any reason any Lender (a “Defaulting Lender”) shall fail or refuse to perform any
of its obligations under this Agreement or any other Loan Document to which it is a party within
the time period specified for performance of such obligation or, if no time period is specified, if
such failure or refusal continues for a period of 2 Business Days after notice from the
Administrative Agent, then, in addition to the rights and remedies that may be available to the
Administrative Agent or the Borrower under this Agreement or Applicable Law, such Defaulting
Lender’s right to participate in the administration of the Loans, this Agreement and the other Loan
Documents, including without limitation, any right to vote in respect of, to consent to or to
direct any action or inaction of the Administrative Agent or to be taken into account in the
calculation of Required Lenders, shall be suspended during the pendency of such failure or refusal.
If for any reason a Lender fails to make timely payment to the Administrative

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Agent of any amount required to be paid to the Administrative Agent hereunder (without giving
effect to any notice or cure periods), in addition to other rights and remedies which the
Administrative Agent or the Borrower may have under the immediately preceding provisions or
otherwise, the Administrative Agent shall be entitled (i) to collect interest from such Defaulting
Lender on such delinquent payment for the period from the date on which the payment was due until
the date on which the payment is made at the greater of Federal Funds Effective Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules on interbank
compensation, (ii) to withhold or setoff and to apply in satisfaction of the defaulted payment and
any related interest, any amounts otherwise payable to such Defaulting Lender under this Agreement
or any other Loan Document and (iii) to bring an action or suit against such Defaulting Lender in a
court of competent jurisdiction to recover the defaulted amount and any related interest. Any
amounts received by the Administrative Agent in respect of a Defaulting Lender’s Loans shall not be
paid to such Defaulting Lender and shall be held by the Administrative Agent and paid to such
Defaulting Lender upon the Defaulting Lender’s curing of its default.

     SECTION 2.19. Mitigation Obligations; Replacement of Lenders. (a) If any Lender
requests compensation under Section 2.15, or if the 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, upon the request of the Borrower, 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 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 (and the Required Lenders are not
also doing the same) or if the 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 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) the Borrower shall have received the prior written consent of the
Administrative Agent (and, if a Commitment is being assigned, the Issuing Bank), 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 and participations in LC Disbursements, 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 the 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

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delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the
circumstances entitling the Borrower to require such assignment and delegation cease to apply.

     SECTION 2.20. Increase in Commitment. (a) Unless a Default has occurred and is
continuing, and subject to the satisfaction of the conditions in Section 2.20(b), the Borrower, by
written notice to the Administrative Agent (the “Additional Commitment Notice”), may request on up
to two (2) occasions during the Availability Period that the total Commitments be increased by an
amount not less than $20,000,000 per request and not more than $75,000,000 in the aggregate (such
that the total Commitments after such increase shall never exceed $225,000,000); provided that for
any such request any Lender which is a party to this Agreement prior to such request for increase,
at its sole discretion, may elect to increase its Commitment, but shall not have any obligation to
so increase its Commitment. In the event that lenders commit to any such increase, (i) the
Commitments of the committed Lenders shall be increased accordingly, (ii) the Applicable
Percentages of each of the Lenders shall be adjusted accordingly (or, in the case of a new lender
not previously party hereto, added to Schedule 1) and the Borrower shall make such borrowings and
repayments as shall be necessary to effect such reallocation of the Commitments, (iii) if requested
by any Lender making an additional or new commitment, new Notes shall be issued, and (iv) other
changes shall be made by way of supplement, amendment or restatement of any Loan Document as may be
necessary or desirable to reflect the aggregate amount, if any, by which Lenders have agreed to
increase their respective Commitments or any other lenders have agreed to make new commitments
pursuant to this Section 2.20 without the consent of any Lender other than those Lenders increasing
their Commitments. The fees payable by the Borrower upon any such increase in Commitments shall be
agreed upon by the Arranger and the Borrower at the time of such increase. In the event of any
such increase of the Commitments pursuant to this Section 2.20, the aggregate LC Exposure of the
Lenders shall remain $25,000,000. Notwithstanding the foregoing, nothing in this Section 2.20
shall constitute or be deemed to constitute an agreement by any Lender to increase its Commitment
hereunder.

     (b) Notwithstanding the foregoing, an increase in the aggregate amount of the Commitments
shall be effective only if (i) no Default shall have occurred and be continuing on the date of the
Additional Commitment Notice and the date such increase is to become effective; (ii) each of the
representations and warranties made in this Agreement and the other Loan Documents shall be true
and complete on and as of the date of the Additional Commitment Notice and the date such increase
is to become effective with the same force and effect as if made on and as of such date (or, if any
such representation or warranty is expressly stated to have been made as of a specific date, as of
such specific date); (iii) the Administrative Agent shall have received (x) such documents and
certificates as the Administrative Agent or its counsel may reasonably request relating to the
authorization of such increase and (y) a favorable written opinion (addressed to the Administrative
Agent and the Lenders) of counsel for the Borrower and the other Loan Parties substantially in the
form of Exhibit F-1 or F-2, as applicable, after giving effect to such increase; (iv) the Borrower
and its Subsidiaries shall be in compliance with Article VI; and (v) the Lenders shall have
received all amounts, if any, payable pursuant to Section 2.16 as a result of the repayment
described in clause (ii) of Section 2.20(a).

     SECTION 2.21. Funds Transfer Disbursements.

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     (a) Generally. The Borrower hereby authorizes the Administrative Agent to disburse
the proceeds of any Loan to any of the accounts designated in the Transfer Authorizer Designation
Form. The Borrower agrees to be bound by any transfer request (i) authorized or transmitted by the
Borrower or (ii) made in the Borrower’s name and accepted by the Administrative Agent in good faith
and in compliance with these transfer instructions, even if not properly authorized by the
Borrower. The Borrower further agrees and acknowledges that the Administrative Agent may rely
solely on any bank routing number or identifying bank account number or name provided by the
Borrower to effect a wire or funds transfer even if the information provided by the Borrower
identifies a different bank or account holder than named by the Borrower. The Administrative Agent
is not obligated or required in any way to take any actions to detect errors in information
provided by the Borrower. If the Administrative Agent takes any actions in an attempt to detect
errors in the transmission or content of transfer or requests or takes any actions in an attempt to
detect unauthorized funds transfer requests, the Borrower agrees that no matter how many times the
Administrative Agent takes these actions the Administrative Agent will not in any situation be
liable for failing to take or correctly perform these actions in the future and such actions shall
not become any part of the transfer disbursement procedures authorized under this provision, the
Loan Documents, or any agreement between the Administrative Agent and the Borrower. The Borrower
agrees to notify the Administrative Agent of any errors in the transfer of any funds or of any
unauthorized or improperly authorized transfer requests within 14 days after the Administrative
Agent’s confirmation to the Borrower of such transfer.

     (b) Funds Transfer. The Administrative Agent will, in its sole discretion, determine
the funds transfer system and the means by which each transfer will be made. The Administrative
Agent may delay or refuse to accept a funds transfer request if the transfer would: (i) violate the
terms of this authorization, (ii) require use of a bank unacceptable to the Administrative Agent or
prohibited by government authority, (iii) cause the Administrative Agent to violate any Federal
Reserve or other regulatory risk control program or guideline, or (iv) otherwise cause the
Administrative Agent to violate any applicable law or regulation.

     (c) Limitation of Liability. The Administrative Agent shall not be liable to the
Borrower or any other parties for (i) errors, acts or failures to act of others, including other
entities, banks, communications carriers or clearinghouses, through which the Borrower’s transfers
may be made or information received or transmitted, and no such entity shall be deemed an agent of
the Administrative Agent, (ii) any loss, liability or delay caused by fires, earthquakes, wars,
civil disturbances, power surges or failures, acts of government, labor disputes, failures in
communications networks, legal constraints or other events beyond the Administrative Agent’s
control, or (iii) any special, consequential, indirect or punitive damages, whether or not (x) any
claim for these damages is based on tort or contract or (y) the Administrative Agent or the
Borrower knew or should have known the likelihood of these damages.

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ARTICLE III.

Representations and Warranties

     The Borrower represents and warrants to the Lenders, the Administrative Agent and the Issuing
Bank that:

     SECTION 3.1. Organization; Powers. Each of the Borrower, the other Loan Parties and
the Borrower’s other Affiliates is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization, has all requisite power and authority to own or lease
its property and 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 have been duly
authorized by all necessary corporate action of the Borrower and by all necessary partnership,
limited liability company or corporate action of the other Loan Parties. Each of the Loan Parties
has the requisite power and authority to perform this Agreement and the other Loan Documents. This
Agreement has been duly authorized, executed and delivered by the Borrower and constitutes a legal,
valid and binding obligation of the Borrower, 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) Schedule 3.2 contains a diagram indicating the ownership structure of the Borrower, and
any other Person in which the Borrower holds a direct or indirect partnership, joint venture or
other equity interest, indicating the nature of such interest with respect to each Person included
in such diagram and accurately sets forth (1) the correct legal name of such Person, the
jurisdiction of its incorporation or organization and, for each Loan Party, the jurisdictions in
which it is qualified to transact business as a foreign corporation, or otherwise, (2) the
authorized, issued and outstanding shares or interests of each class of securities of the Borrower
and (3) in the case of a Subsidiary, whether such Subsidiary is an Excluded Subsidiary. None of
such issued and outstanding securities is subject to any vesting, redemption, or repurchase
agreement, and there are no warrants or options outstanding with respect to such securities, except
as noted on such Schedule. The outstanding capital stock of the Borrower is duly authorized,
validly issued, fully paid and nonassessable.

     SECTION 3.3. Governmental Approvals; No Conflicts. Except as specified on Schedule
3.3, 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, (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 Borrower, any other Loan Party or any of the other Subsidiaries or
any order, judgment or decree of any Governmental Authority, (c) will not violate or result in a
default under any indenture, agreement or other instrument binding upon the

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Borrower, any other Loan Party or any of the other Subsidiaries or any of their respective
assets, or give rise to a right thereunder to require any payment to be made by the Borrower, any
other Loan Party or any of the other Subsidiaries, and (d) will not result in the creation or
imposition of any Lien on any asset of the Borrower, any other Loan Party or any of the other
Subsidiaries.

     SECTION 3.4. Financial Condition; No Material Adverse Change. (a) The Borrower has
heretofore furnished to the Lenders (i) its audited financial statements as of December 31, 2005,
reported on by PricewaterhouseCoopers LLP, independent public accountants and (ii) its pro forma
unaudited balance sheets and statements of income as of September 30, 2006, certified by its chief
financial officer. Such financial statements present fairly, in all material respects, the
financial position and results of operations of the Borrower and its consolidated Subsidiaries as
of such dates and for such periods in accordance with GAAP, subject to (y) normal and recurring
year-end audit adjustments and the absence of footnotes in the case of the statements referred to
in clause (ii) above and (z) any pro forma financial statements contained in such consolidated
financial statements are not necessarily indicative of the consolidated financial position of the
Borrower and its Subsidiaries, as of the respective dates thereof and the consolidated results of
operations for the periods indicated.

     (b) Neither the Borrower nor any of its Subsidiaries has any Contingent Obligation or
liability for any taxes, long-term leases or commitments, not reflected in its audited financial
statements delivered to the Administrative Agent on or prior to the Closing Date (including
immediately after giving effect to the Merger) or otherwise disclosed to the Administrative Agent
and the Lenders in writing prior to the Closing Date, which will have or is reasonably likely to
have a Material Adverse Effect.

     (c) The Borrower has heretofore furnished to the Lenders (i) the audited financial statements
of CPA 12 as of December 31, 2005, reported on by PricewaterhouseCoopers LLP, independent public
accountants and (ii) the pro forma unaudited balance sheets and statements of income of CPA 12 as
of September 30, 2006, certified by the chief financial officer of CPA 12. Such financial
statements present fairly, in all material respects, the financial position and results of
operations of CPA 12 and its consolidated subsidiaries as of such dates and for such periods in
accordance with GAAP, subject to (y) normal and recurring year-end audit adjustments and the
absence of footnotes in the case of the statements referred to in clause (ii) above and (z) any pro
forma financial statements contained in such consolidated financial statements are not necessarily
indicative of the consolidated financial position of CPA 12 and its subsidiaries, as of the
respective dates thereof and the consolidated results of operations for the periods indicated.

     (d) The Borrower has heretofore furnished to the Lenders (i) the pro forma consolidated
balance sheet of the Borrower as of December 31, 2005 and March 31, 2006 and the pro forma
consolidated statements of income of the Borrower for the year ended December 31, 2005 and the
three months ended March 31, 2006, in each case giving pro forma effect to the Merger Transactions.
Such financial statements have been prepared by the Borrower and CPA 12 based on their respective
financial statements for such periods and as of such dates together with available information and
certain assumptions which the Borrower believes to be reasonable, and give pro forma effect to the
Merger Transactions.

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     (e) Schedule 3.4 sets forth, as of the date hereof (and after giving effect to the Merger),
all Indebtedness of the Borrower and its Subsidiaries and, except as set forth on Schedule 3.4,
there are no defaults in the payment of principal or interest on any such Indebtedness and no
payments thereunder have been deferred or extended beyond their stated maturity and there has been
no material change in the type or amount of such Indebtedness.

     (f) Since December 31, 2005, there has been no material adverse change in the business,
assets, operations, prospects or condition, financial or otherwise, of the Borrower and its
Subsidiaries, taken as a whole.

     SECTION 3.5. Properties. (a) Each of the Borrower, the other Loan Parties and the
other Subsidiaries has good title to, or valid leasehold interests in, all its real and personal
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 Borrower, the other Loan Parties and the other Subsidiaries owns, or is
licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual property
material to its business, and the use thereof by the Borrower, the other Loan Parties and the other
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.

     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 the Borrower, threatened against or affecting the Borrower, the other Loan Parties or
any of the other 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, the Transactions or the Merger 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, none of the Borrower, the other Loan Parties or any of the other 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.

     SECTION 3.7. Compliance with Laws and Agreements. Each of the Borrower, the other
Loan Parties and the other Subsidiaries is in compliance with all laws, regulations and orders,
judgments or decrees 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. No Default has occurred and is continuing.

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     SECTION 3.8. Investment Company Status. None of the Borrower, the other Loan Parties
or any of the other 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 Borrower, the other Loan Parties and the other
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 the Borrower,
such other Loan Party or such other Subsidiary, as applicable, has set aside on its books adequate
reserves with respect thereto in accordance with GAAP and (b) to the extent that the failure to do
so could not reasonably be expected to result in a Material Adverse Effect.

     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. The present value of
all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of
Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent
financial statements reflecting such amounts, exceed by more than $250,000 the fair market value of
the assets of such Plan, and the present value of all accumulated benefit obligations of all
underfunded Plans (based on the assumptions used for purposes of Statement of Financial Accounting
Standards No. 87) did not, as of the date of the most recent financial statements reflecting such
amounts, exceed by more than $250,000 the fair market value of the assets of all such underfunded
Plans.

     SECTION 3.11. Disclosure. The Borrower has disclosed to the Lenders all agreements,
instruments and corporate or other restrictions to which it, any of the other Loan Parties or any
of the other 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 hereafter) and none of the reports, financial statements, certificates or
other information furnished by or on behalf of the Borrower, the other Loan Parties and the other
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 Borrower
represents only that such information was prepared in good faith based upon assumptions believed to
be reasonable at the time.

     SECTION 3.12. Insurance. The insurance policies and programs in effect as of the
Closing Date and thereafter with respect to the Property, assets and business of the Borrower, the
other Loan Parties and the other Subsidiaries are in compliance with Section 5.5.

     SECTION 3.13. [Reserved].

     SECTION 3.14. SEC Reports. As of the Closing Date, the Borrower has filed all forms,
reports, statements (including proxy statements) and other documents (such filings by the Borrower
are collectively referred to as the “SEC Reports”), required to be filed by it with the

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Securities and Exchange Commission. The SEC Reports, including all SEC Reports filed on or
prior to the date of this Agreement and filed after the Closing Date, (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
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 3.15. Representations and Warranties in Loan Documents. All representations
and warranties made by the Borrower and each other Loan Party in the Loan Documents are true and
correct in all material respects as of the date of this Agreement (and after giving effect to the
Merger) and as of any date that the Borrower is expressly obligated to confirm the same under this
Agreement.

     SECTION 3.16. Organizational Documents. The documents delivered pursuant to Section
4.1 constitute, as of the Closing Date (and after giving effect to the Merger), true and correct
copies of all of the organizational documents of the Borrower and the other Loan Parties.

     SECTION 3.17. REIT Status. The Borrower qualifies as a REIT and is in compliance
with all requirements and conditions imposed under the Code to allow the Borrower to maintain its
status as a REIT.

     SECTION 3.18. OFAC. None of the Borrower, any of the other Loan Parties, any of the
other Subsidiaries, or any other Affiliate of the Borrower: (i) is a person named on the list of
Specially Designated Nationals or Blocked Persons maintained by the U.S. Department of the
Treasury’s Office of Foreign Assets Control (“OFAC”) available at
http://www.treas.gov/offices/eotffc/ofac/sdn/index.html, or as otherwise published from time to
time; (ii) is (A) an agency of the government of a country, (B) an organization controlled by a
country, or (C) a person resident in a country that is subject to a sanctions program identified on
the list maintained by OFAC and available at
http://www.treas.gov/offices/eotffc/ofac/sanctions/index.html, or as otherwise published from time
to time, as such program may be applicable to such agency, organization or person; or (iii) derives
any of its assets or operating income from investments in or transactions with any such country,
agency, organization or person; and none of the Letters of Credit and none of the proceeds from the
Loans will be used to finance any operations, investments or activities in, or make any payments
to, any such country, agency, organization, or person.

ARTICLE IV.

Conditions

     SECTION 4.1. Closing Date. The obligations of the Lenders to make Loans and of the
Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on
which each of the following conditions is satisfied (or waived in accordance with Section 9.2):

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     (a) The Administrative Agent (or its counsel) shall have received from each Loan Party
hereto either (i) a counterpart of all Loan Documents to which such Loan Party is a party,
signed on behalf of such Loan Party or (ii) written evidence satisfactory to the
Administrative Agent (which may include telecopy transmission of a signed signature page of
each such Loan Document) that such Loan Party has signed a counterpart of all Loan Documents
required to be delivered to the Administrative Agent.

     (b) The Administrative Agent shall have received (i) a favorable written opinion
(addressed to the Administrative Agent and the Lenders and dated the Closing Date) of Reed
Smith LLP, counsel for the Borrower and certain of the other Loan Parties, and (ii) a
favorable written opinion (addressed to the Administrative Agent and the Lenders and dated
the Closing Date) of local counsel to certain of the Loan Parties (which counsel must be
reasonably acceptable to the Administrative Agent), substantially in the forms of Exhibit
F-1, and Exhibit F-2, respectively, and covering such other matters relating to the
Borrower, the other Loan Parties, this Agreement or the Transactions as the Required Lenders
shall reasonably request. The Borrower 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 the Loan Parties and the Borrower’s other Affiliates, the
authorization of the Transactions and any other legal matters relating to the Loan Parties
and the Borrower’s other Affiliates, this Agreement or the Transactions, all in form and
substance satisfactory to the Administrative Agent and its counsel.

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

     (e) No change in the business, assets, management, operations, financial condition or
prospects of the Borrower, the other Loan Parties or any of their respective Properties
shall have occurred since December 31, 2005 which change, in the judgment of the
Administrative Agent, will have or is reasonably likely to have a Material Adverse Effect.

     (f) Except as disclosed on Schedule 4.1(f), since December 31, 2005, the Borrower has
not and shall not have (i) entered into any (as determined in good faith by the
Administrative Agent) commitment or transaction, including, without limitation, transactions
for borrowings and capital expenditures, which are not in the ordinary course of the
Borrower’s business, (ii) declared or paid any dividends or other distributions, (iii)
established compensation or employee benefit plans, or (iv) redeemed or issued any equity
securities.

     (g) Since December 31, 2005, no agreement or license relating to the business,
operations or employee relations of the Borrower or any of its Properties shall

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have been terminated, modified, revoked, breached or declared to be in default, the
termination, modification, revocation, breach or default under which, in the reasonable
judgment of the Administrative Agent, would result in a Material Adverse Effect.

     (h) The Administrative Agent shall have received evidence satisfactory to it in its
sole discretion that the waivers or consents specified in Schedule 3.3 have been duly
obtained.

     (i) 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, reimbursement or
payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower
hereunder.

     (j) The Administrative Agent shall have received an Officer’s Certificate duly executed
by the President, a Vice President or a Financial Officer of the Borrower certifying as to
pro forma compliance with the financial covenants in Section 6.1 as of the Closing Date
(taking into account any Credit Event to occur on such date and giving pro forma effect to
the Merger).

     (k) [Reserved]

     (l) The Administrative Agent shall have received current certificates of insurance as
to all of the insurance maintained by the Borrower and its Subsidiaries on the Properties
from the insurer or an independent insurance broker or a schedule of insurance from the
Borrower, identifying insurers, types of insurance, insurance limits, and policy terms, and
such further information and certificates from the Borrower, its insurers and insurance
brokers as the Administrative Agent may reasonably request.

     (m) The Administrative Agent shall have received: (i) a certificate of the chief
executive officer, chief financial officer or other senior officer of the Borrower stating
that all conditions precedent to the consummation of the Merger Transactions as set forth in
the Merger Agreement have been satisfied (or waived with the consent of the Required
Lenders) and that the Alternate Merger did not occur, (ii) file-stamped copies of the
articles of merger of the Borrower and CPA 12 filed with the Secretary of State of the State
of Maryland and (iii) such other documents, agreement and certificates relating to the
Merger Transactions as the Administrative Agent may reasonably request.

     (n) The Administrative Agent shall have received the Transfer Authorizer Designation
Form effective as of the date hereof.

     The Administrative Agent shall notify the Borrower 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, and of the Issuing Bank to issue, amend, renew or extend any Letter of
Credit (such Borrowing, issuance, amendment, renewal or extension referred to herein as a “Credit
Event”), is subject to the satisfaction of the following conditions:

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     (a) The representations and warranties set forth in this Agreement and the other Loan
Documents shall be true and correct 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.

     (c) The Borrower shall not have received written notice from the Required Lenders that an
event has occurred since the date of this Agreement which has had, and continues to have, or is
reasonable likely to have, a Material Adverse Effect.

     (d) The Administrative Agent shall have received an Officer’s Certificate duly executed by the
President, a Vice President or a Financial Officer of the Borrower as to the pro forma financial
covenant compliance required by Section 6.1(i).

     (e) No law, regulation or order of any Governmental Authority shall prohibit, enjoin or
restrain any Lender from making such Borrowing or participating in the issuance, amendment, renewal
or extension of such Letter of Credit, as reasonably determined by such Lender.

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

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 and all Letters of Credit
shall have expired or terminated or been cancelled by the beneficiaries thereof and all LC
Disbursements shall have been reimbursed, the Borrower covenants and agrees with the Lenders that:

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

     (a) Quarterly Reports.

     (i) Borrower 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 of the Borrower and its
Subsidiaries on Form 10-Q as at the end of such period and a report setting forth in comparative
form the corresponding figures as of the end of and for the corresponding period of the previous
fiscal year, certified by a Financial Officer of the Borrower as fairly presenting the consolidated
and, for so long as such statements are prepared in the ordinary course of business, consolidating,
financial position of the Borrower 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.

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     (ii) Quarterly Compliance Certificates. Together with each delivery of any quarterly
report pursuant to paragraph (a)(i) of this Section 5.1, an Officer’s Certificate of the Borrower
(the “Quarterly Compliance Certificates”), signed by a Financial Officer of the Borrower,
substantially in the form of Exhibit I hereto, representing and certifying (1) that the Financial
Officer of the Borrower signatory thereto has reviewed the terms of the Loan Documents, and has
made, or caused to be made, under his/her supervision, a review in reasonable detail of the
Transactions and consolidated, and for so long as such statements are prepared in the ordinary
course of business, consolidating, financial condition of the Borrower 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 mandatory prepayment event, or, if any such condition or event existed or exists,
specifying the nature and period of existence thereof and what action the Borrower or any of its
Subsidiaries has taken, is taking and proposes to take with respect thereto, (2) the calculations,
in the form of Exhibit G attached hereto, for the period then ended which demonstrate whether there
has been compliance with the covenants and financial ratios set forth in Article VI, (3) a schedule
of the Borrower’s outstanding Indebtedness, including the amount, maturity, interest rate and
amortization requirements, as well as such other information regarding such Indebtedness as may be
reasonably requested by the Administrative Agent, and (4) a schedule of Adjusted EBITDA of the
Borrower and its Subsidiaries for the fiscal quarter most recently ended and for the period of the
four immediately preceding fiscal quarters then ended.

     (b) Annual Reports.

     (i) Borrower 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 of the Borrower
and its Subsidiaries on Form 10-K as at the end of such fiscal year and a report setting forth in
comparative form the corresponding figures from the consolidated Financial Statements of the
Borrower and its Subsidiaries as of the end of and for the prior fiscal year; (ii) a report with
respect thereto of PricewaterhouseCoopers LLP or other independent certified public accountants
acceptable to the Administrative Agent, which report shall be unqualified and shall state that such
financial statements fairly present the consolidated and, for so long as such statements are
prepared in the ordinary course of business, consolidating financial position of each of the
Borrower 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 Borrower
or to any officer or employee thereof by such independent certified public accountants in
connection with such financial statements. The Administrative Agent and each Lender (through the
Administrative Agent) may, with the consent of the Borrower (which consent shall not be
unreasonably withheld), communicate directly with such accountants, with any such communication to
occur together with a representative of the Borrower, at the expense of the Administrative Agent
(or the Lender requesting such communication), upon reasonable notice and at reasonable times
during normal business hours.

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     (ii) Annual Compliance Certificates. Together with each delivery of any annual report
pursuant to clause (i) of this Section 5.1(b), an Officer’s Certificate of the Borrower (the
“Annual Compliance Certificate” and, collectively with the Quarterly Compliance Certificate, the
“Compliance Certificates”), signed by a Financial Officer of the Borrower, substantially in the
form of Exhibit I hereto, representing and certifying (1) that the officer signatory thereto has
reviewed the terms of the Loan Documents, and has made, or caused to be made under his/her
supervision, a review in reasonable detail of the Transactions and consolidated and, for so long as
such statements are prepared in the ordinary course of business, consolidating financial condition
of the Borrower 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 mandatory prepayment event,
or, if any such condition or event existed or exists, specifying the nature and period of existence
thereof and what action the Borrower or any of its Subsidiaries has taken, is taking and proposes
to take with respect thereto, (2) the calculations, in the form of Exhibit G attached hereto, for
the period then ended which demonstrate whether there has been compliance with the covenants and
financial ratios set forth in Article VI, (3) a schedule of the Borrower’s outstanding Indebtedness
including the amount, maturity, interest rate and amortization requirements, as well as such other
information regarding such Indebtedness as may be reasonably requested by the Administrative Agent,
and (4) a schedule of Adjusted EBITDA of the Borrower and its Subsidiaries for the fiscal quarter
most recently ended and for the period of the four immediately preceding fiscal quarters then
ended.

     (c) Tenant Bankruptcy Reports. As soon as practicable, and in any event within ninety
(90) days after the end of each fiscal year, a written report, in form reasonably satisfactory to
the Administrative Agent, of all bankruptcy proceedings filed by or against any tenants of any of
the Projects, if such tenants occupy five percent (5%) or more of the gross leasable area in the
Projects in the aggregate. The Borrower shall deliver to the Administrative Agent and the Lenders,
promptly upon the Borrower’s learning thereof, notice of any bankruptcy proceedings filed by or
against, or the cessation of business or operations of, any tenant of any of the Projects which
tenant occupies five percent (5%) or more of the gross leasable area in the Projects in the
aggregate.

     (d) Concurrently with any delivery of financial statements under clause (b) above, a
certificate of the accounting firm that reported on such financial statements stating whether they
obtained knowledge during the course of their examination of such financial statements of any
Default (which certificate may be limited to the extent required by accounting rules or
guidelines).

     (e) Promptly following any request therefor, such other information regarding the operations,
business affairs and financial condition of the Borrower, any other Loan Party or any other
Subsidiary, or compliance with the terms of this Agreement, 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. (a) The Borrower will furnish to the
Administrative Agent and each Lender prompt written notice of the following:

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     (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 the Borrower, any other Loan Party
or any other Affiliate of the Borrower 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
Borrower and its Subsidiaries in an aggregate amount exceeding $250,000;

     (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 Borrower and its Subsidiaries in an
aggregate amount exceeding the greater of (A) $1,000,000 and (B) one percent (1%) of the
Total Value; and

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

     (b) The Borrower shall deliver to the Administrative Agent and the Lenders written notice of
each of the following events affecting the Borrower, any other Loan Party or any other Subsidiary
not less than five (5) Business Days prior to the occurrence thereof: (i) [reserved], (ii) a sale,
transfer or other disposition of assets, in a single transaction or series of related transactions,
for consideration in excess of $50,000,000, (iii) an acquisition of assets, in a single transaction
or series of related transactions, for consideration in excess of $50,000,000, (iv) [reserved], and
(v) the grant of a Lien with respect to assets, in a single transaction or series of related
transactions, in connection with Indebtedness aggregating an amount in excess of $50,000,000. In
addition, simultaneously with delivery of any such notice, the Borrower shall deliver to the
Administrative Agent and the Lenders a certificate of a Financial Officer of the Borrower
certifying that the Borrower 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 property to be acquired or 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, proceeds of such transaction (together with such additional amounts as may be
required), in an amount, as determined by the Administrative Agent, equal to that which would be
required to reduce the Obligations so that Borrower will be in compliance with the covenants set
forth herein upon the consummation of the contemplated transaction, shall be paid by the Borrower
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 Borrower setting forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect thereto.

     SECTION 5.3. Existence; Conduct of Business. The Borrower will, and will cause each
other Loan Party and each of the other 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,

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licenses, permits, privileges and franchises material to the conduct of its business. The
Borrower will not, and will not permit any other Loan Party 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, the Borrower shall nonetheless notify the Administrative Agent in writing promptly after
such event.

     SECTION 5.4. Payment of Obligations. The Borrower will, and will cause each other
Loan Party and each of the other Subsidiaries to, pay its respective obligations, including Tax
liabilities, that, if not paid, could result in a Material Adverse Effect 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) the Borrower, such other Loan Parties or such other
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 could not reasonably be expected to
result in a Material Adverse Effect.

     SECTION 5.5. Maintenance of Properties; Insurance. (a) The Borrower will, and will
cause each other Loan Party and each of the other 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) The Borrower, the other Loan Parties and the other Subsidiaries will 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 Borrower, the other Loan Parties and the other Subsidiaries (less
commercially reasonable deductible amounts) and (ii) liability risks associated with such ownership
(less commercially reasonable deductible amounts).

     SECTION 5.6. Books and Records; Inspection Rights. The Borrower will, and will cause
each other Loan Party and each of the other 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. The Borrower will, and will cause each other Loan Party
and each of the other 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 and condition
with its officers and independent accountants, all at such reasonable times and as often as
reasonably requested.

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     SECTION 5.7. Compliance with Laws. The Borrower will, and will cause each other Loan
Party and each of the other Subsidiaries to, comply with all laws, rules, regulations and orders of
any Governmental Authority applicable to it or its respective 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 and Letters of Credit. No Letters of Credit and no part
of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that
entails a violation of any of the Regulations of the Board, including Regulations U and X. The
proceeds of the Loans will be used only for the purposes of:

     (a) acquisition of Projects or Joint Venture Holdings;

     (b) renovation of Properties owned by the Borrower or its consolidated Subsidiaries;

     (c) funding of TI Work and Tenant Allowances;

     (d) financing expansions, renovations and new construction related to Properties owned
by the Borrower or its consolidated Subsidiaries;

     (e) refinancing or repayment of existing or future Indebtedness for borrowed money;

     (f) working capital needs of the Borrower and other general corporate purposes;

     (g) investments in Mortgage Assets;

     (h) redemptions or purchases by the Borrower of its common stock; and

     (i) payment of any sums required to be paid by the Borrower in connection with the
Merger Transactions plus fees and expenses incurred by the Borrower in connection with the
Merger Transactions.

     SECTION 5.9. [Reserved].

     SECTION 5.10. Solvency of Loan Parties. The Borrower and the other Loan Parties are
Solvent. The Borrower and the other Loan Parties each acknowledges that, subject to the
indefeasible payment and performance in full of the Obligations, the rights of contribution among
each of them are in accordance with applicable laws and in accordance with each such Person’s
benefits in respect of the Credit Events and under this Agreement.

     SECTION 5.11. Further Assurances. The Borrower will cooperate with, and will cause
each of the other Loan Parties and each of the other Subsidiaries to cooperate with, the
Administrative Agent and the Lenders and execute such further instruments and documents as the
Lenders or the Administrative Agent shall reasonably request to carry out to their reasonable
satisfaction the transactions contemplated by this Agreement and the other Loan Documents.

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     SECTION 5.12. Distributions in the Ordinary Course. In the ordinary course of
business the Borrower causes all of its Subsidiaries to make transfers of net cash and cash
equivalents upstream to the Borrower, and the Borrower shall continue to follow such ordinary
course of business. The Borrower 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 5.13. ERISA Compliance. The Borrower shall, and shall cause each of the
other Loan Parties and each of the other 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 5.14. REIT Status. The Borrower shall at all times maintain its status as a
REIT.

     SECTION 5.15. New Guarantors. (a) Requirement to Become Guarantor. Within
10 days of any Person (other than an Excluded Subsidiary) becoming a Subsidiary after the Closing
Date, the Borrower shall deliver to the Administrative Agent each of the following items, each in
form and substance satisfactory to the Administrative Agent: (i) an Accession Agreement executed by
such Subsidiary and (ii) the items that would have been delivered under Sections 4.1(a) through (c)
if such Subsidiary had been a Subsidiary on the Closing Date; provided, however, promptly (and in
any event within 10 days) upon any Excluded Subsidiary ceasing to be subject to the restriction
which prevented it from becoming a Guarantor on the Closing Date or delivering an Accession
Agreement pursuant to this Section, as the case may be, such Subsidiary shall comply with the
provisions of this Section.

     (b) Release of a Guarantor. The Borrower may request in writing that the
Administrative Agent release, and upon receipt of such request the Administrative Agent shall
release, a Guarantor from the Guaranty so long as: (i) such Guarantor (x) has ceased to be, or
simultaneously with its release from the Guaranty will cease to be, a Subsidiary or (y) qualifies,
or will qualify simultaneously with its release from the Guaranty, as an Excluded Subsidiary; (ii)
no Default shall then be in existence or would occur as a result of such release; (iii) the
representations and warranties made or deemed made by the Borrower and each other Loan Party in the
Loan Documents to which any of them is a party, shall be true and correct in all material respects
on and as of the date of such release with the same force and effect as if made on and as of such
date except to the extent that such representations and warranties expressly relate solely to an
earlier date (in which case such representations and warranties shall have been true and correct in
all material respects on and as of such earlier date) and except for changes in factual
circumstances not prohibited under the Loan Documents; and (iv) the Administrative Agent shall have
received such written request at least 10 Business Days prior to the requested date of release.
Delivery by the Borrower to the Administrative Agent of any such request shall constitute a
representation by the Borrower that the matters set forth in the preceding sentence (both as of the
date of the giving of such request and as of the date of the effectiveness of such request) are
true and correct with respect to such request.

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     SECTION 5.16. Distributions of Income to Borrower. The Borrower shall cause all of
its Subsidiaries to distribute promptly to the Borrower, whether in the form of dividends,
distributions or otherwise, all profits, proceeds or other income relating to or arising from its
Subsidiaries’ use, operation, financing, refinancing, sale or other disposition of their respective
assets and properties after (a) the payment by each Subsidiary of its applicable operating expenses
and debt service and (b) the establishment of reasonable reserves for the payment of operating
expenses and debt service not paid on at least a quarterly basis and capital improvements to be
made to such Subsidiary’s assets and properties approved by such Subsidiary in the ordinary course
of business.

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 and all Letters of Credit have expired
or terminated and all LC Disbursements shall have been reimbursed, the Borrower covenants and
agrees with the Lenders that:

     SECTION 6.1. Indebtedness and Other Financial Covenants

     (a) Total Liabilities. As of the last day of each fiscal quarter, Total
Liabilities shall not exceed sixty-five percent (65%) of Total Value.

     (b) Minimum Combined Equity Value. The Combined Equity Value as of the Closing
Date and as of the last day of each fiscal quarter thereafter shall be not less than
$625,000,000, plus an amount equal to eighty-five percent (85%) of the Fair Market Value of
all Net Offering Proceeds received by the Borrower after the Closing Date.

     (c) Minimum Consolidated Interest Coverage Ratio. As of the last day of each
fiscal quarter, the ratio of (i) the sum of Adjusted EBITDA of the Borrower and its
Subsidiaries determined on a consolidated basis for such fiscal quarter, to (ii) Total
Interest Expense for such fiscal quarter shall not be less than 1.65 to 1.0.

     (d) Minimum Yield on Debt. As of the last day of each fiscal quarter, the
ratio of (i) Adjusted EBITDA of the Borrower and its Subsidiaries determined on a
consolidated basis for such fiscal quarter, to (ii) Total Liabilities shall not be less than
12.5%.

     (e) Minimum Fixed Charge Coverage Ratio. As of the last day of each fiscal
quarter, the ratio of (i) Adjusted EBITDA of the Borrower and its Subsidiaries determined in
a consolidated basis for such fiscal quarter, to (ii) Fixed Charges for the preceding fiscal
quarter shall not be less than 1.5 to 1.0

     (f) Maximum Dividend Payout Ratio. The Borrower 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
percent (90%) of Adjusted EBITDA of the Borrower and its

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Subsidiaries determined on a consolidated basis for the four preceding fiscal quarters.
Notwithstanding the foregoing, but subject to the following sentence, if an Event of
Default exists, the Borrower may only declare or make cash distributions to its shareholders
during any fiscal year in an aggregate amount not to exceed the minimum amount necessary for
the Borrower to maintain its status as a REIT. If a Default specified in Section 7.1(a),
Section 7.1(h) or Section 7.1(i) shall exist, or if as a result of the occurrence of any
other Event of Default any of the Loans have been accelerated pursuant to Article VII, the
Borrower shall not, and shall not permit any Subsidiary to, make any Restricted Payments to
any Person other than to the Borrower or any Subsidiary. For purposes of this provision,
“Restricted Payment” means (i) any dividend or other distribution on any equity securities
of the Borrower or any Subsidiary (except dividends payable solely in equity securities of
the Borrower or any Subsidiary or in rights to subscribe for or purchase equity securities
of the Borrower or any Subsidiary) or (ii) any payment on account of the purchase,
redemption, retirement or acquisition of (a) any equity securities of the Borrower or any
Subsidiary or (b) any option, warrant or other right to acquire equity securities of the
Borrower or any Subsidiary.

     (g) Other Indebtedness. The Borrower will not create, incur, assume or permit
to exist any Indebtedness other than (i) Indebtedness under the Loan Documents, (ii)
Nonrecourse Indebtedness and (iii) Indebtedness that is recourse to the Borrower in an
aggregate amount not to exceed 5% of Total Value outstanding at any time. The Borrower will
not permit any other Loan Party or any other Subsidiary to, and no other Loan Party or any
other Subsidiary shall, create, incur, assume or permit to exist any Indebtedness other than
(i) Indebtedness of any Loan Party or other Subsidiary to the Borrower evidenced by a
promissory note (an “Intercompany Note”) in the form of Exhibit H hereto, (ii) Nonrecourse
Indebtedness, (iii) Indebtedness of a Subsidiary to a Subsidiary (other than Indebtedness of
a Subsidiary that is a Guarantor to a Subsidiary that is not a Guarantor) and (iv)
Indebtedness that is recourse to an Excluded Subsidiary, but only if such Subsidiary was
formed solely to own, and only owns, a particular Project, and does not engage in any
business other than the ownership of such Project.

     (h) Negative Pledge. From and after the date hereof, the Borrower shall not,
and shall not permit any other Loan Party or any other Subsidiary to, enter into or permit
to exist any agreement, other than this Agreement (i) containing any provision prohibiting
the creation or assumption of any Lien upon its properties (other than mechanics liens or
judgment liens more than 30 days past due and other than with respect to prohibitions on
liens set forth in a mortgage on a particular property (or set forth in the documents
evidencing or securing Secured Indebtedness so long as the incurrence of such Secured
Indebtedness is not otherwise prohibited by this Agreement)), revenues or assets, whether
now owned or hereafter acquired, or (ii) restricting the ability of the Borrower or any
other Loan Party to amend or modify this Agreement or any other Loan Document, or (iii)
restricting the ability of any other Loan Party or any other Subsidiary (other than an
Excluded Subsidiary) to make or pay dividends or distributions to the Borrower.

     (i) Pro Forma Calculations. The Borrower shall comply with the financial ratio
set forth in Section 6.1(a) as of the date of each Credit Event. The Borrower shall
recalculate such financial ratio by adding an amount equal to the Indebtedness associated

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with such Credit Event to the Total Liabilities reflected on the most recently
available financial statements, and adding thereto any Total Liabilities incurred since the
date of such financial statement and adding to Total Value the value of such assets
(determined at cost) acquired with any such Total Liabilities to Total Value. The Borrower
shall deliver an Officer’s Certificate, signed by a Financial Officer of the Borrower,
certifying that the pro forma calculations as of the date of such Credit Event demonstrate
the Borrower’s compliance with the financial ratio set forth in Section 6.1(a).

     SECTION 6.2. Liens. The Borrower will not, and will not permit any other Loan Party
or any other 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 Borrower pursuant to which the aggregate Indebtedness under such
Capital Leases does not exceed $50,000 for any Project; and

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

     SECTION 6.3. Fundamental Changes. (a) The Borrower will not, and will not permit any
other Loan Party or any other 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) all or substantially all of its
assets, or all or substantially all of the stock 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 the Borrower, any other Loan Party or any other Subsidiary in a transaction
in which the Borrower, another Loan Party or a Subsidiary is the surviving corporation, (ii) any
Subsidiary may merge with any other Subsidiary; provided, that if any Subsidiary shall be merged
with a Loan Party, the surviving Subsidiary shall be the Loan Party or shall become a Guarantor
under this Agreement, and (iii) the sale of stock of a Subsidiary (other than a Guarantor), subject
to the requirements set forth in Section 5.2(b).

     (b) The Borrower will not, and will not permit any other Loan Party or any other Subsidiary
to, engage to any material extent in any business other than businesses of the type conducted by
the Borrower and its Subsidiaries on the date of execution of this Agreement and businesses
reasonably related thereto.

     SECTION 6.4. Investments, Loans, Advances, Guarantees and Acquisitions. The Borrower
will not, and will not permit any other Loan Party or any other Subsidiary to, purchase, hold or
acquire (including pursuant to any merger with any Person that was not a wholly owned Subsidiary
prior to such merger) any capital stock, evidences of indebtedness or other securities (including
any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any
loans or advances to, Guarantee any obligations of, or make or permit to exist any

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investment or any other interest in, any other Person, or purchase or otherwise acquire (in
one transaction or a series of transactions) any assets of any other Person constituting a business
unit, except:

	 	(a)	 	Permitted Investments;
	 
	 	(b)	 	investments in Real Property (except as otherwise limited in
this Section 6.4);
	 
	 	(c)	 	investments (including loans and advances) in or to the
Subsidiaries;
	 
	 	(d)	 	investments in Joint Ventures which are not Subsidiaries;
provided that the aggregate amount of investments in (i) WP Carey Joint
Ventures shall not exceed 35% of Total Value and (ii) other Joint Ventures
shall not exceed 5% of Total Value;
	 
	 	(e)	 	investments in Real Property located outside the United States;
provided that the aggregate amount of investments in Real Estate located
outside of the United States shall not exceed 15% of Total Value;
	 
	 	(f)	 	investments in notes secured by mortgages on any Real Property
of any Person;
	 
	 	(g)	 	investments in Real Property under construction; provided that
the aggregate amount of investments in Real Property under construction shall
not exceed 5% of Total Value;
	 
	 	(h)	 	investments in Real Property consisting of undeveloped land;
provided that the aggregate amount of investments in Real Property consisting
of undeveloped land shall not exceed 5% of Total Value;
	 
	 	(i)	 	investments in Permitted REIT Investments; provided that the
aggregate amount of investments in Permitted REIT Investments shall not exceed
$25,000,000 (valued at historical cost);
	 
	 	(j)	 	investments in Marketable Securities; provided that the
aggregate amount of investments in Marketable Securities shall not exceed
$25,000,000;
	 
	 	(k)	 	investments in securities of tenants under Leases, including
any capital stock, warrants, stock options or other equity securities of such
tenants and any underlying security thereof, acquired in connection with or
arising out of a leasing transaction with such tenant and any subsequent
exercise of such warrant or stock options and the ownership of such underlying
security thereof;
	 
	 	(l)	 	Guarantees by the Borrower of the Indebtedness or other
obligations of a wholly-owned Subsidiary or of a Joint Venture in which the
Borrower owns, directly or indirectly, a Joint Venture Holding, so long as the

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	 	 	 	Indebtedness under such Guarantees is not otherwise prohibited by Section
6.1(g)(iii) or any other provisions of this Article VI (excluding this
Section 6.4); and
	 
	 	(m)	 	Guarantees by the Borrower or a wholly-owned Subsidiary of
obligations in respect of Nonrecourse Carveouts of a wholly-owned Subsidiary or
of a Joint Venture in which the Borrower owns, directly or indirectly, a Joint
Venture Holding.

Notwithstanding the foregoing, the amount of the investments of the types set forth in clauses
(d)(ii) through (k) shall not exceed 18% of Total Value in the aggregate. In no event shall the
Borrower or any Subsidiary engage in speculative development. Speculative development shall not
include the ownership, renovating, repair or rehabilitation of a Property previously leased but
which is being renovated, repaired, or rehabilitated to position the Property for re-leasing
following a tenant default, lease expiration or lease termination.

     SECTION 6.5. Hedging Agreements. The Borrower will not, and will not permit any
other Loan Party or any other Subsidiary 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 the
Borrower, such other Loan Party or such other Subsidiary is exposed in the conduct of its business
or the management of its liabilities.

     SECTION 6.6. ERISA. The Borrower will not, and will not permit any other Loan Party
or any other Subsidiary or ERISA Affiliates to:

     (a) engage in any prohibited transaction described in Sections 406 of ERISA or 4975 of
the Code for which a statutory or class exemption is not available or a private exemption
has not been previously obtained from the United States Department of Labor, except to the
extent engaging in such transaction would not have a Material Adverse Effect;

     (b) permit to exist any accumulated funding deficiency (as defined in Sections 302 of
ERISA and 412 of the Code), with respect to any Plan, whether or not waived;

     (c) fail to pay timely required contributions or annual installments due with respect
to any waived funding deficiency to any Plan;

     (d) terminate any Plan which would result in any liability of the Borrower or any ERISA
Affiliate under Title IV of ERISA;

     (e) fail to make any contribution or payment to any Multiemployer Plan which the
Borrower or any ERISA Affiliate may be required to make under any agreement relating to such
Multiemployer Plan, or any law pertaining thereto, except to the extent such failure would
not have a Material Adverse Effect;

     (f) fail to pay any required installment or any other payment required under Section
412 of the Code on or before the due date for such installment or other payment; or

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     (g) amend a Plan resulting in an increase in current liability for the plan year such
that the Borrower or any ERISA Affiliate is required to provide security to such Plan under
Section 401(a)(29) of the Code.

     SECTION 6.7. Margin Regulations; Securities Laws. The Borrower will not, and will
not permit any other Loan Party or any other Subsidiary to, use all or any portion of the proceeds
of any credit extended under this Agreement to purchase or carry Margin Stock.

     SECTION 6.8. Transactions with Affiliates. The Borrower will not, and will not
permit any other Loan Party or any other Subsidiary to, 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 five percent
(5%) of any class of equity securities of the Borrower, or with any Affiliate of the Borrower which
is not its Subsidiary, on terms that are determined by the board of directors of the Borrower to be
less favorable to the Borrower 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 6.8 shall prohibit (a) increases to compensation and
benefits for officers and employees of the Borrower or any of its Subsidiaries which are customary
in the industry or consistent with the past business practice of the Borrower or such Subsidiary,
provided that no Default has occurred and is continuing or would result therefrom; (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(f).

ARTICLE VII.

Events of Default

     SECTION 7.1. Events of Default. If any of the following events (“Events of Default”)
shall occur:

     (a) the Borrower shall fail to pay any principal of any Loan or any reimbursement
obligation in respect of any LC Disbursement 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) the Borrower 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, or any other Loan Party shall
fail to pay when due any obligation owing by such Loan Party under any Loan Document to
which it is a party, and such failure shall continue unremedied for a period of three
Business Days;

     (c) any representation or warranty made or deemed made by or on behalf of the Borrower,
any other Loan Party or any other 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

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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 or
furnished;

     (d) the Borrower, any other Loan Party or any other Subsidiary shall fail to observe or
perform any covenant, condition or agreement contained in Article V or in Article VI or any
covenant, condition or agreement in any Loan Document that becomes effective upon an Event
of Default;

     (e) the Borrower, any other Loan Party or any other Subsidiary 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 Article), and such
failure shall continue unremedied for a period of 30 days after notice thereof from the
Administrative Agent to the Borrower (which notice will be given at the request of the
Required Lenders);

     (f) the Borrower, any other Loan Party or any other 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 unless prohibited by this Agreement;

     (h) an involuntary proceeding shall be commenced or an involuntary petition shall be
filed seeking (i) liquidation, reorganization or other relief in respect of the Borrower,
any other Loan Party or any other 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 the
Borrower, any other Loan Party or any other 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) the Borrower, any other Loan Party or any other 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,

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trustee, custodian, sequestrator, conservator or similar official for the Borrower, any
other Loan Party or any other 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) the Borrower, any other Loan Party or any other 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 (iv) of the second
sentence of Section 6.1(g)) shall be rendered against the Borrower, any other Loan Party or
any other 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 Borrower or any Subsidiary to enforce any such judgment;

     (l) an ERISA Event shall have occurred that, in the opinion of the Required Lenders,
when taken together with all other ERISA Events that have occurred, could reasonably be
expected to result in liability of the Borrower or any Subsidiary in an aggregate amount
exceeding (i) $250,000 in any year or (ii) $500,000 for all periods;

     (m) a Change in Control shall occur;

     (n) an event shall occur which has a Material Adverse Effect; or

     (o) the Borrower shall merge or liquidate with or into any other Person and, as a
result thereof and after giving effect thereto, (i) the Borrower is not the surviving Person
or (ii) such merger or liquidation would effect an acquisition of or investment in any
Person not otherwise permitted under the terms of this Agreement;

then, and in every such event (other than an event described in clause (h) or (i) of this Article),
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 Borrower, 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, and (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 Borrower 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 Borrower, (iii)
require cash collateral as contemplated by Section 2.6(j), and (iv) enforce any rights and exercise
any rights and remedies available under any Loan Document or otherwise; and in the case of any
event described in clause (h) or (i) of this Article, the Commitments shall automatically terminate
and the principal of the Loans then

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outstanding, together with accrued interest thereon and all fees and other obligations of the
Borrower 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 Borrower.

ARTICLE VIII.

The Administrative Agent

     SECTION 8.1. Appointment and Authorization. Each Lender hereby irrevocably appoints
and authorizes the Administrative Agent to take such action as contractual representative on such
Lender’s behalf and to exercise such powers under this Agreement and the other Loan Documents as
are specifically delegated to the Administrative Agent by the terms hereof and thereof, together
with such powers as are reasonably incidental thereto. Not in limitation of the foregoing, each
Lender authorizes and directs the Administrative Agent to enter into the Loan Documents for the
benefit of the Lenders. Each Lender hereby agrees that, except as otherwise set forth herein, any
action taken by the Required Lenders in accordance with the provisions of this Agreement or the
other Loan Documents, and the exercise by the Required Lenders of the powers set forth herein or
therein, together with such other powers as are reasonably incidental thereto, shall be authorized
and binding upon all of the Lenders. Nothing herein shall be construed to deem the Administrative
Agent a trustee or fiduciary for any Lender or to impose on the Administrative Agent duties or
obligations other than those expressly provided for herein. Without limiting the generality of the
foregoing, the use of the terms “Administrative Agent”, “Agent”, “agent” and similar terms in the
Loan Documents with reference to the Administrative Agent is not intended to connote any fiduciary
or other implied (or express) obligations arising under agency doctrine of any Applicable Law.
Instead, use of such terms is merely a matter of market custom, and is intended to create or
reflect only an administrative relationship between independent contracting parties. The
Administrative Agent will furnish to any Lender, upon the request of such Lender, a copy (or, where
appropriate, an original) of any document, instrument, agreement, certificate or notice furnished
to the Administrative Agent by the Borrower, any other Loan Party or any other Affiliate of the
Borrower, pursuant to this Agreement or any other Loan Document not already delivered to such
Lender pursuant to the terms of this Agreement or any such other Loan Document. As to any matters
not expressly provided for by the Loan Documents (including, without limitation, enforcement or
collection of any of the Loans), the Administrative Agent shall not be required to exercise any
discretion or take any action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions of the Required
Lenders (or all of the Lenders if explicitly required under any other provision of this Agreement),
and such instructions shall be binding upon all Lenders; provided, however, that, notwithstanding
anything in this Agreement to the contrary, the Administrative Agent shall not be required to take
any action which exposes the Administrative Agent to personal liability or which is contrary to
this Agreement or any other Loan Document or Applicable Law. Not in limitation of the foregoing,
the Administrative Agent shall exercise any right or remedy it or the Lenders may have under any
Loan Document upon the occurrence of a Default unless the Required Lenders (or all of the Lenders
if explicitly required under this Agreement) have directed the Administrative Agent otherwise.
Without limiting the foregoing, no Lender shall have any right of action whatsoever against the
Administrative Agent as a result of the Administrative Agent acting or refraining from acting under
this Agreement or any of the other

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Loan Documents in accordance with the instructions of the Required Lenders, or where
applicable, all the Lenders.

     SECTION 8.2. Wells Fargo as Lender. Wells Fargo, as a Lender, shall have the same
rights and powers under this Agreement and any other Loan Document as any other Lender and may
exercise the same as though it were not the Administrative Agent; and the term “Lender” or
“Lenders” shall, unless otherwise expressly indicated, include Wells Fargo in each case in its
individual capacity. Wells Fargo and its affiliates may each accept deposits from, maintain
deposits or credit balances for, invest in, lend money to, act as trustee under indentures of,
serve as financial advisor to, and generally engage in any kind of business with, the Borrower, any
other Loan Party or any other Affiliate thereof as if it were any other bank and without any duty
to account therefor to the other Lenders. Further, the Administrative Agent and any Affiliate
thereof may accept fees and other consideration from the Borrower for services in connection with
this Agreement and otherwise without having to account for the same to the Lenders. The Lenders
acknowledge that, pursuant to such activities, Wells Fargo or its Affiliates may receive
information regarding the Borrower, other Loan Parties, other Subsidiaries and other Affiliates of
the Borrower (including information that may be subject to confidentiality obligations in favor of
such Person) and acknowledge that the Administrative Agent shall be under no obligation to provide
such information to them.

     SECTION 8.3. Approvals of Lenders. All communications from the Administrative Agent
to any Lender requesting such Lender’s determination, consent, approval or disapproval (a) shall be
given in the form of a written notice to such Lender, (b) shall be accompanied by a description of
the matter or issue as to which such determination, approval, consent or disapproval is requested,
or shall advise such Lender where information, if any, regarding such matter or issue may be
inspected, or shall otherwise describe the matter or issue to be resolved, (c) shall include, if
reasonably requested by such Lender and to the extent not previously provided to such Lender,
written materials and a brief summary of all oral information provided to the Administrative Agent
by the Borrower relevant to the matter or issue to be resolved, and (d) shall include the
Administrative Agent’s recommended course of action or determination in respect thereof. Unless a
Lender shall give written notice to the Administrative Agent that it specifically objects to the
recommendation or determination of the Administrative Agent (together with a reasonable written
explanation of the reasons behind such objection) within 10 Business Days (or such lesser or
greater period as may be specifically required under the express terms of the Loan Documents) of
receipt of such communication, such Lender shall be deemed to have conclusively approved of or
consented to such recommendation or determination.

     SECTION 8.4. Notice of Defaults. The Administrative Agent shall not be deemed to
have knowledge or notice of the occurrence of a Default unless the Administrative Agent has
received notice from a Lender or the Borrower referring to this Agreement, describing with
reasonable specificity such Default and stating that such notice is a “notice of default”. If any
Lender (excluding the Lender which is also serving as the Administrative Agent) becomes aware of
any Default, it shall promptly send to the Administrative Agent such a “notice of default”.
Further, if the Administrative Agent receives such a “notice of default,” the Administrative Agent
shall give prompt notice thereof to the Lenders.

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     SECTION 8.5. Administrative Agent’s Reliance, Etc. Notwithstanding any other
provisions of this Agreement or any other Loan Documents, neither the Administrative Agent nor any
of its directors, officers, agents, employees or counsel shall be liable for any action taken or
not taken by it under or in connection with this Agreement or any other Loan Document, except for
its or their own gross negligence or willful misconduct in connection with its duties expressly set
forth herein or therein. Without limiting the generality of the foregoing, the Administrative
Agent: may consult with legal counsel (including its own counsel or counsel for the Borrower or any
other Loan Party), independent public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good faith by it in accordance with the
advice of such counsel, accountants or experts. Neither the Administrative Agent nor any of its
directors, officers, agents, employees or counsel: (a) makes any warranty or representation to any
Lender or any other Person or shall be responsible to any Lender or any other Person for any
statement, warranty or representation made or deemed made by the Borrower, any other Loan Party or
any other Person in or in connection with this Agreement or any other Loan Document; (b) shall have
any duty to ascertain or to inquire as to the performance or observance of any of the terms,
covenants or conditions of this Agreement or any other Loan Document or the satisfaction of any
conditions precedent under this Agreement or any other Loan Document on the part of the Borrower or
other Persons or inspect the property, books or records of the Borrower or any other Person; (c)
shall be responsible to any Lender for the due execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Agreement or any other Loan Document, any other
instrument or document furnished pursuant thereto or any collateral covered thereby or the
perfection or priority of any Lien in favor of the Administrative Agent on behalf of the Lenders in
any such collateral; (d) shall have any liability in respect of any recitals, statements,
certifications, representations or warranties contained in any of the Loan Documents or any other
document, instrument, agreement, certificate or statement delivered in connection therewith; or (e)
shall incur any liability under or in respect of this Agreement or any other Loan Document by
acting upon any notice, consent, certificate or other instrument or writing (which may be by
telephone, telecopy or electronic mail) believed by it to be genuine and signed, sent or given by
the proper party or parties. The Administrative Agent may execute any of its duties under the Loan
Documents by or through agents, employees or attorneys-in-fact and shall not be responsible for the
negligence or misconduct of any agent or attorney-in-fact that it selects in the absence of gross
negligence or willful misconduct.

     SECTION 8.6. Indemnification of Administrative Agent. Regardless of whether the
transactions contemplated by this Agreement and the other Loan Documents are consummated, each
Lender agrees to indemnify the Administrative Agent (to the extent not reimbursed by the Borrower
and without limiting the obligation of the Borrower to do so) pro rata in accordance with such
Lender’s respective Applicable Percentage, from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind
or nature whatsoever which may at any time be imposed on, incurred by, or asserted against the
Administrative Agent (in its capacity as Administrative Agent but not as a “Lender”) in any way
relating to or arising out of the Loan Documents, any transaction contemplated thereby or any
action taken or omitted by the Administrative Agent under the Loan Documents (collectively,
“Indemnifiable Amounts”); provided, however, that no Lender shall be liable for any portion of such
Indemnifiable Amounts to the extent resulting from the Administrative Agent’s gross negligence or
willful misconduct as determined by a court of competent jurisdiction in a final, non-appealable
judgment provided, however, that no action

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taken in accordance with the directions of the Required Lenders (or all of the Lenders if
expressly required under this Agreement) shall be deemed to constitute gross negligence or willful
misconduct for purposes of this Section. Without limiting the generality of the foregoing, each
Lender agrees to reimburse the Administrative Agent (to the extent not reimbursed by the Borrower
and without limiting the obligation of the Borrower to do so) promptly upon demand for its ratable
share of any reasonable out-of-pocket expenses (including the reasonable fees and expenses of the
counsel to the Administrative Agent) incurred by the Administrative Agent in connection with the
preparation, negotiation, execution, administration, or enforcement (whether through negotiations,
legal proceedings, or otherwise) of, or legal advice with respect to the rights or responsibilities
of the parties under, the Loan Documents, any suit or action brought by the Administrative Agent to
enforce the terms of the Loan Documents and/or collect any Loans, any “lender liability” suit or
claim brought against the Administrative Agent and/or the Lenders, and any claim or suit brought
against the Administrative Agent and/or the Lenders arising under any Environmental Laws; provided,
however, that no Lender shall be liable for any portion of such expenses to the extent resulting
from the Administrative Agent’s gross negligence or willful misconduct as determined by a court of
competent jurisdiction in a final, non-appealable judgment; provided further, however, that no
action taken in accordance with the directions of the Required Lenders (or all of the Lenders if
expressly required under this Agreement) shall be deemed to constitute gross negligence or willful
misconduct for purposes of this Section. Such out-of-pocket expenses (including counsel fees)
shall be advanced by the Lenders on the request of the Administrative Agent notwithstanding any
claim or assertion that the Administrative Agent is not entitled to indemnification hereunder upon
receipt of an undertaking by the Administrative Agent that the Administrative Agent will reimburse
the Lenders if it is actually and finally determined by a court of competent jurisdiction that the
Administrative Agent is not so entitled to indemnification. The agreements in this Section shall
survive the payment of the Loans and all other amounts payable hereunder or under the other Loan
Documents and the termination of this Agreement. If the Borrower shall reimburse the
Administrative Agent for any Indemnifiable Amount following payment by any Lender to the
Administrative Agent in respect of such Indemnifiable Amount pursuant to this Section, the
Administrative Agent shall share such reimbursement on a ratable basis with each Lender making any
such payment.

     SECTION 8.7. Lender Credit Decision, Etc. Each Lender expressly acknowledges and
agrees that neither the Administrative Agent nor any of its officers, directors, employees, agents,
counsel, attorneys-in-fact or other affiliates has made any representations or warranties to such
Lender and that no act by the Administrative Agent hereafter taken, including any review of the
affairs of the Borrower, any other Loan Party or any other Subsidiary or Affiliate of the Borrower,
shall be deemed to constitute any such representation or warranty by the Administrative Agent to
any Lender. Each Lender acknowledges that it has made its own credit and legal analysis and
decision to enter into this Agreement and the transactions contemplated hereby, independently and
without reliance upon the Administrative Agent, any other Lender or counsel to the Administrative
Agent, or any of their respective officers, directors, employees, agents or counsel, and based on
the financial statements of the Borrower, the other Loan Parties, the other Subsidiaries and other
Affiliates of the Borrower, and inquiries of such Persons, its independent due diligence of the
business and affairs of the Borrower, the other Loan Parties, the other Subsidiaries and other
Persons, its review of the Loan Documents, the legal opinions required to be delivered to it
hereunder, the advice of its own counsel and such other documents and information as it has deemed
appropriate. Each Lender also acknowledges that it will,

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independently and without reliance upon the Administrative Agent, any other Lender or counsel
to the Administrative Agent or any of their respective officers, directors, employees and agents,
and based on such review, advice, documents and information as it shall deem appropriate at the
time, continue to make its own decisions in taking or not taking action under the Loan Documents.
The Administrative Agent shall not be required to keep itself informed as to the performance or
observance by the Borrower or any other Loan Party of the Loan Documents or any other document
referred to or provided for therein or to inspect the properties or books of, or make any other
investigation of, the Borrower, any other Loan Party or any other Subsidiary. Except for notices,
reports and other documents and information expressly required to be furnished to the Lenders by
the Administrative Agent under this Agreement or any of the other Loan Documents, the
Administrative Agent shall have no duty or responsibility to provide any Lender with any credit or
other information concerning the business, operations, property, financial and other condition or
creditworthiness of the Borrower, any other Loan Party or any other Affiliate thereof which may
come into possession of the Administrative Agent or any of its officers, directors, employees,
agents, attorneys-in-fact or other Affiliates. Each Lender acknowledges that the Administrative
Agent’s legal counsel in connection with the transactions contemplated by this Agreement is only
acting as counsel to the Administrative Agent and is not acting as counsel to such Lender.

     SECTION 8.8. Successor Administrative Agent. The Administrative Agent may resign at
any time as Administrative Agent under the Loan Documents by giving written notice thereof to the
Lenders and the Borrower. The Administrative Agent may be removed for cause in the case of its
gross negligence or willful misconduct as Administrative Agent under the Loan Documents by all
Lenders (other than the Lender then acting as Administrative Agent) and the Borrower upon 30 day’s
prior notice. Upon any such resignation or removal, the Required Lenders (which, in the case of
the removal of the Administrative Agent as provided in the immediately preceding sentence, shall be
determined without regard to the Commitment of the Lender than acting as Administrative Agent)
shall have the right to appoint a successor Administrative Agent which appointment shall, provided
no Default exists, be subject to the Borrower’s approval, which approval shall not be unreasonably
withheld or delayed. If no successor Administrative Agent shall have been so appointed in
accordance with the immediately preceding sentence, and shall have accepted such appointment,
within 30 days after the current Administrative Agent’s giving of notice of resignation or the
Lenders’ removal of the current Administrative Agent, then the current Administrative Agent may, on
behalf of the Lenders, appoint a successor Administrative Agent, which shall be a Lender, if any
Lender shall be willing to serve, and otherwise shall be an Eligible Assignee. Upon the acceptance
of any appointment as Administrative Agent hereunder by a successor Administrative Agent, such
successor Administrative Agent shall thereupon succeed to and become vested with all the rights,
powers, privileges and duties of the current Administrative Agent, and the current Administrative
Agent shall be discharged from its duties and obligations under the Loan Documents. After any
Administrative Agent’s resignation or removal hereunder as Administrative Agent, the provisions of
this Article VIII. shall continue to inure to its benefit as to any actions taken or omitted to be
taken by it while it was Administrative Agent under the Loan Documents. Notwithstanding anything
contained herein to the contrary, the Administrative Agent may assign its rights and duties under
the Loan Documents to any of its affiliates by giving the Borrower and each Lender prior written
notice.

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     SECTION 8.9. Titled Agents. Each of the Arranger, the Syndication Agents and the
Documentation Agents, (each a “Titled Agent”) in each such respective capacity, assumes no
responsibility or obligation hereunder, including, without limitation, for servicing, enforcement
or collection of any of the Loans, nor any duties as an agent hereunder for the Lenders. The
titles given to the Titled Agents are solely honorific and imply no fiduciary responsibility on the
part of the Titled Agents to the Administrative Agent, any Lender, the Borrower or any other Loan
Party and the use of such titles does not impose on the Titled Agents any duties or obligations
greater than those of any other Lender or entitle the Titled Agents to any rights other than those
to which any other Lender is entitled.

ARTICLE IX.

Miscellaneous

     SECTION 9.1. 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:

     (a) if to the Borrower, to it at c/o 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);

     (b) if to the Administrative Agent, to Wells Fargo Bank, National Association, as
Administrative Agent, 40 West 57th Street, New York, New York 10019, Attention of
Jan LaChapelle and Loan Administration (Telecopy No. 212-581-0979), and to Wells Fargo Bank
National Association, as Administrative Agent, 2120 East Park Place, Suite 100, El Segundo,
California 90245 (Telecopy No. 310-615-1014), Attention of Disbursement Administrator, with
copies to Wells Fargo Bank, National Association, as Administrative Agent, Real Estate
Group, 420 Montgomery Street, 6th Floor, San Francisco, California 94111,
Attention of Chief Credit Officer – Real Estate Group (Telecopy No. 415-781-8324);

     (c) if to the Issuing Bank, to Wells Fargo Bank, National Association, as Issuing Bank,
40 West 57th Street, New York, New York 10019, Attention of Jan LaChapelle and
Loan Administration, and to Wells Fargo Bank National Association, as Issuing Bank, 2120
East Park Place, Suite 100, El Segundo, California 90245, Attention of Disbursement
Administrator, with copies to Wells Fargo Bank, National Association, as Issuing Bank, Real
Estate Group, 420 Montgomery Street, 6th Floor, San Francisco, California 94111,
Attention of Chief Credit Officer – Real Estate Group ; and

     (d) if to any other Lender, to it at its address (or telecopy number) set forth in its
Administrative Details Form.

Any party hereto may change its address or telecopy number for notices and other communications
hereunder by notice to the other parties hereto. All notices and other

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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.

     SECTION 9.2. Waivers; Amendments. (a) No failure or delay by the Administrative
Agent, the Issuing Bank or any Lender in exercising any right or power hereunder 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, the Issuing Bank and the Lenders hereunder 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 consent to any departure by the Borrower or any Loan Party therefrom shall in any
event be effective unless the same shall be permitted by paragraph (b) of this Section, 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 or issuance of
a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the
Administrative Agent, any Lender or the Issuing Bank may have had notice or knowledge of such
Default at the time.

     (b) Neither this Agreement nor 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 Borrower and the Required Lenders or by the Borrower 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 a reduction of
Commitments under Section 2.9), (ii) reduce the principal amount of any Loan or LC Disbursement 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 LC Disbursement, 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, or permit the expiration date of any Letter of Credit to be
after the date specified in Section 2.6(c)(ii), without the written consent of each Lender affected
thereby (other than extensions of the Maturity Date in accordance with Section 2.5), (iv) change
Section 2.18(b) or (c) 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)
except as permitted pursuant to Section 5.15(b), release any Guarantor without the consent of each
Lender; provided further that no such agreement shall amend, modify or otherwise affect the rights
or duties of the Administrative Agent or the Issuing Bank hereunder without, in addition, the prior
written consent of the Administrative Agent or the Issuing Bank, as the case may be; provided,
further, Schedules 3.2 and 4.1(f) may be amended by the Borrower without the consent of the
Required Lenders solely to update the information contained therein.

     SECTION 9.3. Expenses; Indemnity; Damage Waiver. (a) The Borrower shall pay (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

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Agent, in connection with the syndication of the credit facilities provided for herein, the
preparation and administration of this Agreement or any amendments, modifications or waivers of the
provisions hereof (whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable out-of-pocket expenses incurred by the Issuing Bank in connection
with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for
payment thereunder and (iii) all out-of-pocket expenses incurred by the Administrative Agent, the
Issuing Bank or any Lender, including the fees, charges and disbursements of any counsel for the
Administrative Agent, the Issuing Bank or any Lender, in connection with the enforcement or
protection of its rights in connection with this Agreement, including its rights under this
Section, or in connection with the Loans made or Letters of Credit issued hereunder, including all
such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect
of such Loans or Letters of Credit.

     (b) The Borrower shall indemnify the Administrative Agent, the Issuing Bank 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 or any agreement or instrument
contemplated hereby, the performance by the parties hereto of their respective obligations
hereunder or the consummation of the Transactions or any other transactions contemplated hereby,
(ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by
the Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented
in connection with such demand do not strictly comply with the terms of such Letter of Credit),
(iii) any actual or alleged presence or release of Hazardous Materials on or from any property
owned, leased or operated by the Borrower or any of its Subsidiaries, or any Environmental
Liability related in any way to the Borrower or any of its 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 Borrower fails to pay any amount required to be paid by it to the
Administrative Agent or the Issuing Bank under paragraph (a) or (b) of this Section, each Lender
severally agrees to pay to the Administrative Agent or the Issuing Bank, as the case may be, 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 or the Issuing Bank in its capacity as such.

     (d) To the extent permitted by applicable law, the Borrower shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any agreement or instrument contemplated
hereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof.

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     (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 (including any Affiliate of the Issuing Bank that issues any Letter of
Credit), except that a Loan Party may not assign or otherwise transfer any of its rights or
obligations hereunder or under any other Loan Document without the prior written consent of each
Lender (and any attempted assignment or transfer by the Borrower 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
(including any Affiliate of the Issuing Bank that issues any Letter of Credit) and, to the extent
expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the Issuing
Bank 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 Eligible Assignees (each an “Assignee”) all or a
portion of its rights and obligations under this Agreement (including all or a portion of its
Commitment and the Loans at the time owing to it); provided that (i) except in the case of an
assignment to an existing Lender, the Borrower (so long as no Event of Default has occurred and is
continuing), the Administrative Agent and the Issuing Bank must give their prior written consent to
such assignment (which consent shall not be unreasonably withheld), (ii) except in the case of an
assignment to an existing Lender 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 $10,000,000 unless each of the
Borrower (so long as no Event of Default has occurred and is continuing) and the Administrative
Agent otherwise consent and after giving effect to such partial assignment, the assigning Lender
shall have retained a Commitment in an amount equal to at least $10,000,000, (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, and the Assignee shall pay the
Administrative Agent a processing and recordation fee of $4,500, and (v) the Assignee, if it shall
not be a Lender, shall deliver to the Administrative Agent an Administrative Details Form. 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 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

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Borrower is required pursuant to this Section 9.4, and the Borrower does not respond to the
Administrative Agent’s request for consent within five Business Days of such request, such consent
shall be deemed given. Upon consummation of any assignment pursuant to this subsection (b), the
assigning Lender, the Administrative Agent and the Borrower shall arrange to issue new Notes to the
assigning Lender and Assignee as appropriate.

     (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, and the LC Exposure of,
each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the
Register shall be conclusive, and the Borrower, the Administrative Agent, the Issuing Bank and the
Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof
as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.
The Register shall be available for inspection by the Borrower, the Issuing Bank 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 Details Form (unless the assignee
shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph
(b) of this Section and any written consent to such assignment required by paragraph (b) of this
Section, 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 Borrower, the Administrative Agent
or the Issuing Bank, 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 and the other Loan
Documents (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 Borrower, the Administrative Agent, the Issuing Bank 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 to approve any amendment, modification or waiver of any provision of this Agreement;
provided that such agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver described in the first
proviso to Section 9.2(b) that affects such Participant. Subject to paragraph (f) of this Section,
the Borrower agrees 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(c) as though it were a Foreign 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 Borrower’s prior written consent. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 2.17 unless the Borrower is notified
of the participation sold to such Participant and such Participant agrees, for the benefit of the
Borrower, to comply with Section 2.17(e) as though it were a Foreign 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 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 the Borrower herein 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 and issuance of any Letters of Credit, regardless of any investigation made by any such other
party or on its behalf and notwithstanding that the Administrative Agent, the Issuing Bank 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 or any Letter of Credit is outstanding 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 Letters of Credit and the Commitments or the termination of this Agreement or any provision
hereof.

     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 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 thereof and supersede any and all previous agreements and understandings, oral or
written, relating to the subject matter hereof and thereof. 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 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 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; 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, but in the case of a Lender or a Participant
subject to receipt of the prior written consent of the Administrative Agent exercised in its sole
discretion, 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 the Borrower against any of and all the
obligations of the Borrower now or hereafter existing under this Agreement held by such Lender,
irrespective of whether or not such Lender shall have made any demand under this Agreement 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) The Borrower 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 the Administrative Agent, the Issuing Bank or any Lender
may otherwise have to bring any action or proceeding relating to this Agreement against the
Borrower or its properties in the courts of any jurisdiction.

     (c) The Borrower 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 in any court
referred to in paragraph (b) of this Section. 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 OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY AND 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.

     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, the Issuing Bank
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
or required 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 suit, action or proceeding
relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or
thereunder, (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 any other Loan Document or
(ii) any actual or prospective counterparty (or its advisors) to any swap or derivatives
transaction relating to the Borrower and its obligations, (g) with the consent of the Borrower, (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, the Issuing Bank or any Lender
on a non-confidential basis from a source other than the Borrower, or (i) to the extent provided in
Section 9.16. For the purposes of this Section, “Information” means all information received from
the Borrower relating to the Borrower or its business, other than any such information that is
available to the Administrative Agent, the Issuing Bank or any Lender on a non-confidential basis
prior to disclosure by the Borrower. 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

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maintain the confidentiality of such Information as such Person would accord to its own
confidential information.

     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
Effective Rate to the date of repayment, shall have been received by such Lender.

     SECTION 9.14. [Reserved]

     SECTION 9.15. Electronic Document Delivery.

     Documents required to be delivered pursuant to the Loan Documents shall be delivered by
electronic communication and delivery, including, the Internet, e-mail or intranet websites to
which the Administrative Agent and each Lender have access (including a commercial, third-party
website such as www.Edgar.com <http://www.Edgar.com> or a website sponsored or hosted by the
Administrative Agent or the Borrower) provided that (A) the foregoing shall not apply to notices to
any Lender pursuant to Article II and (B) a Lender has not notified the Administrative Agent or the
Borrower that it cannot or does not want to receive electronic communications. The Administrative
Agent or the Borrower may, in its discretion, agree to accept notices and other communications to
it hereunder by electronic delivery pursuant to procedures approved by it for all or particular
notices or communications. Documents or notices delivered electronically shall be deemed to have
been delivered twenty-four (24) hours after the date and time on which the Administrative Agent or
the Borrower posts such documents or the documents become available on a commercial website and the
Administrative Agent or the Borrower notifies each Lender of said posting and provides a link
thereto provided if such notice or other communication is not sent or posted during the normal
business hours of the recipient, said posting date and time shall be deemed to have commenced as of
9:00 a.m., New York time, on the opening of business on the next business day for the recipient.
Notwithstanding anything contained herein, in every instance the Borrower shall be required to
provide paper copies of the certificate required by Sections 5.1(a)(ii) and (b)(ii) to the
Administrative Agent and shall deliver paper copies of any documents to the Administrative Agent or
to any Lender that requests such paper copies until a written request to cease delivering paper
copies is given by the Administrative Agent or such Lender. Except for the certificates required
by Sections 5.1(a)(ii) and (b)(ii), the Administrative Agent shall have no obligation to request
the delivery of or to maintain paper copies of the documents delivered electronically, and in any
event shall have no responsibility to monitor compliance by the Borrower with any such request for
delivery. Each

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Lender shall be solely responsible for requesting delivery to it of paper copies and
maintaining its paper or electronic documents.

     SECTION 9.16. USA Patriot Act. The USA Patriot Act of 2001 (Public Law 107-56) and
federal regulations issued with respect thereto require all financial institutions to obtain,
verify and record certain information that identifies individuals or business entities which open
an “account” with such financial institution. Consequently, the Administrative Agent for all
Lenders hereunder may from time to time request, and the Borrower shall provide to the
Administrative Agent and the Lenders, the Borrower’s name, address, tax identification number
and/or such other identification information as shall be necessary for Administrative Agent and the
Lenders to comply with federal law. An “account” for this purpose may include, without limitation,
a deposit account, cash management service, a transaction or asset account, a credit account, a
loan or other extension of credit, and/or other financial services product.

[Remainder of Page Intentionally Left Blank]

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

	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	CORPORATE PROPERTY ASSOCIATES 14	 	 
	 

	 	 	 	INCORPORATED	 	 
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Mark J. DeCesaris
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Mark J. DeCesaris	 	 
	 

	 	 	 	Title: Managing Director	 	 

[Signatures Continued on Next Page]

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL	 	 
	 	 	ASSOCIATION, individually, as Issuing	 	 
	 	 	Bank and as Administrative Agent	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Jan LaChapelle	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Jan LaChapelle	 	 
	 

	 	 	 	Title:
	 	Relationship Manager	 	 

[Signatures Continued on Next Page]

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 
	 	 	PNC BANK, NATIONAL	 	 
	 	 	ASSOCIATION	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Brian P. Kelly	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Brian P. Kelly	 	 
	 

	 	 	 	Title:
	 	Vice President	 	 

[Signatures Continued on Next Page]

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 
	 	 	CITIZENS BANK OF RHODE	 	 
	 	 	ISLAND	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Craig E. Schermerhorn	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Craig E. Schermerhorn	 	 
	 

	 	 	 	Title:
	 	 Senior Vice President	 	 

[Signatures Continued on Next Page]

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David Applebaum
 

Name: David Applebaum 

Title: Vice President
	 	 

[Signatures Continued on Next Page]

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 
	 	 	EUROHYPO AG, NEW YORK

BRANCH	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Alfred Koch
	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Alfred Koch
 

	 	 
	 

	 	 	 	Title:
	 	Managing Director	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Jeff Page 
	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Jeff Page
 

	 	 
	 

	 	 	 	Title:
	 	Executive Director
 

	 	 

[Signatures Continued on Next Page]

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	 	 	KBC BANK NV	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Francis X. Payne
	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	FRANCIS X. PAYNE
 

	 	 
	 

	 	 	 	Title:
	 	Vice President
 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Robart Snauffer
	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Robart Snauffer
 

	 	 
	 

	 	 	 	Title:
	 	First Vice President
 

	 	 

Signature Page to Credit Agreement

 

 

Schedule 1

Commitments

	 	 	 	 	 
	Lender 	 	Commitment  	 
	Wells Fargo Bank, National Association

	 	$	40,000,000	 
	PNC Bank, National Association

	 	$	25,000,000	 
	Citizens Bank of Rhode Island

	 	$	25,000,000	 
	The Bank of New York

	 	$	22,500,000	 
	Eurohypo AG, New York Branch

	 	$	22,500,000	 
	KBC Bank NV

	 	$	15,000,000	 

 

SCHEDULE 1.1(a)

CPA REITS

	1.	 	Corporate Property Associates 14 Incorporated
	 
	2.	 	Corporate Property Associates 15 Incorporated
	 
	3.	 	Corporate Property Associates 16 Incorporated

 

 

SCHEDULE 1.1(b)

LOAN PARTIES

Corporate Property Associates 14 Incorporated

Best (CA) QRS 14-4, Inc.

Truck (IN) QRS 14-3, Inc.

DELMO (PA) QRS 12-10

NUTRA (TX) QRS 12-39, Inc.

META (CA) QRS 14-6, Inc.

Film (FL) QRS 14-44, Inc.

Projector (FL) QRS 14-45, Inc.

Tel (VA) QRS 12-15, Inc.

Bandwidth (UT) QRS 14-58, Inc.

 

 

Schedule 3.2

Ownership Structure

(Chart)

 

 

SCHEDULE 3.3

CONSENTS

None.

 

 

Portfolio Overview Schedule 3.4

Pro forma Mortgage Debt Summary

CPA: 14 (Pro-Rata)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Interest	 	Fixed/	 		 	 	9-30-06	 	 	Balloon	 	Maturity
	Tenant/Lease Guarantor	 	Rate	 	Variable	 	Original Balance	 	Balance	 	Payment	 	Date
	 
	Earle M. Jorgensen Company
	 	 	7.82	%	 	Fixed	 	$	3,800,000	 	 	$	3,615,883	 	 	$	3,556,956	 	 	Feb-08
	Gibson Guitar Corporation (82.5%)
	 	 	7.57	%	 	Fixed	 	 	1,712,322	 	 	 	1,525,461	 	 	 	1,455,135	 	 	May-08
	Pacific Logistics (Texas Freezer)
	 	 	5.15	%	 	Fixed	 	 	4,500,000	 	 	 	3,749,539	 	 	 	3,504,001	 	 	Jul-08
	Perry Graphic Communications, Inc.
	 	 	7.01	%	 	Fixed	 	 	11,000,000	 	 	 	9,350,390	 	 	 	8,824,493	 	 	Aug-08
	The Bon-Ton Stores, Inc.
	 	 	6.50	%	 	Fixed	 	 	6,900,000	 	 	 	5,181,372	 	 	 	4,530,499	 	 	Dec-08
	Advanced Micro Devices (66.66%)
	 	 	7.78	%	 	Fixed	 	 	45,500,000	 	 	 	41,571,182	 	 	 	39,893,995	 	 	Jan-09
	Gensia (50%)
	 	 	8.13	%	 	Fixed	 	 	6,500,000	 	 	 	1,616,412	 	 	 	—	 	 	Jan-09
	Brashear, L.P.
	 	 	7.50	%	 	Fixed	 	 	4,225,000	 	 	 	3,698,780	 	 	 	3,442,126	 	 	Apr-09
	Compucom Systems, Inc. (66.66%)
	 	 	7.22	%	 	Fixed	 	 	15,333,333	 	 	 	13,342,640	 	 	 	12,351,558	 	 	May-09
	Production Resource Group (NV)
	 	 	8.31	%	 	Fixed	 	 	5,475,000	 	 	 	4,898,607	 	 	 	4,566,197	 	 	Jul-09
	Intesys Technologies, Inc.
	 	 	8.08	%	 	Fixed	 	 	13,130,000	 	 	 	12,161,461	 	 	 	11,583,578	 	 	Aug-09
	Moonlight Molds (fka Scott)
	 	 	8.21	%	 	Fixed	 	 	3,000,000	 	 	 	2,783,526	 	 	 	2,653,543	 	 	Aug-09
	McLane Foodservice, Inc. (Ameriserve)
	 	 	8.51	%	 	Fixed	 	 	32,000,000	 	 	 	23,466,322	 	 	 	24,885,885	 	 	Sep-09
	Galyan’s Trading Company (2),(3)
	 	 	8.79	%	 	Fixed	 	 	14,748,889	 	 	 	13,870,378	 	 	 	13,258,846	 	 	Sep-09
	Galyan’s Trading (Fairfax & Lombard) (2)
	 	 	8.75	%	 	Fixed	 	 	16,588,659	 	 	 	15,593,642	 	 	 	14,902,267	 	 	Sep-09
	Atrium Companies (TX)
	 	 	8.70	%	 	Fixed	 	 	13,123,000	 	 	 	12,561,533	 	 	 	12,093,827	 	 	Jan-10
	Production Resource Group (CA)
	 	 	7.50	%	 	Fixed	 	 	2,176,623	 	 	 	2,038,234	 	 	 	1,882,416	 	 	Mar-10
	Amerix Corporation
	 	 	8.66	%	 	Fixed	 	 	14,500,000	 	 	 	13,249,559	 	 	 	12,237,419	 	 	Apr-10
	RockIsland Corporation (West Union)
	 	 	8.31	%	 	Fixed	 	 	3,300,000	 	 	 	3,172,187	 	 	 	3,010,388	 	 	Jul-10
	ShopRite Supermarkets, Inc. (45%)
	 	 	7.50	%	 	Fixed	 	 	4,900,500	 	 	 	4,588,928	 	 	 	4,198,845	 	 	Jul-10
	Randall International
	 	 	7.50	%	 	Fixed	 	 	5,549,909	 	 	 	5,197,049	 	 	 	4,732,615	 	 	Sep-10
	Amtech Systems Corporation
	 	 	8.09	%	 	Fixed	 	 	3,500,000	 	 	 	3,321,219	 	 	 	3,140,889	 	 	Oct-10
	Garden Ridge Corporation
	 	 	7.50	%	 	Fixed	 	 	5,510,978	 	 	 	5,160,592	 	 	 	4,688,062	 	 	Oct-10
	Institutional Jobbers Company
	 	 	8.60	%	 	Fixed	 	 	13,416,187	 	 	 	12,259,075	 	 	 	11,026,809	 	 	Nov-10
	Barjan Products
	 	 	7.50	%	 	Fixed	 	 	7,151,053	 	 	 	6,855,044	 	 	 	6,446,194	 	 	Nov-10
	Buffets Holdings, Inc.
	 	 	8.11	%	 	Fixed	 	 	11,785,000	 	 	 	9,129,467	 	 	 	8,151,860	 	 	Dec-10
	Advance Paradigm, Inc. (PCS)
	 	 	8.00	%	 	Fixed	 	 	24,700,000	 	 	 	22,665,785	 	 	 	20,399,141	 	 	Jan-11
	Federal Express Corporation (60%)
	 	 	7.50	%	 	Fixed	 	 	27,000,000	 	 	 	25,308,579	 	 	 	23,476,705	 	 	Jan-11

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Interest	 	Fixed/	 		 	 	9-30-06	 	 	Balloon	 	Maturity
	Tenant/Lease Guarantor	 	Rate	 	Variable	 	Original Balance	 	Balance	 	Payment	 	Date
	 
	Towne Holdings, Inc.
	 	 	7.70	%	 	Fixed	 	 	4,800,000	 	 	 	4,545,308	 	 	 	4,265,830	 	 	Jan-11
	Westell
	 	 	7.40	%	 	Fixed	 	 	12,000,000	 	 	 	10,235,441	 	 	 	8,325,084	 	 	Jan-11
	McCoy, Inc. (90%)
	 	 	8.25	%	 	Fixed	 	 	3,780,000	 	 	 	31450,611	 	 	 	3,080,695	 	 	Jan-11
	Upper Deck Company, The (50%)
	 	 	8.43	%	 	Fixed	 	 	7,500,000	 	 	 	6,000,646	 	 	 	4,882,776	 	 	Feb-11
	Bon-Ton Department Stores, Inc., The
	 	 	7.50	%	 	Fixed	 	 	3,241,555	 	 	 	3,232,040	 	 	 	3,021,286	 	 	Mar-11
	Nexpak Corporation (GA)
	 	 	7.33	%	 	Fixed	 	 	7,900,000	 	 	 	7,473,481	 	 	 	6,959,433	 	 	Apr-11
	24 Hour Fitness (Houston)
	 	 	7.50	%	 	Fixed	 	 	4,330,319	 	 	 	4,054,999	 	 	 	3,628,989	 	 	Apr-11
	Celadon
	 	 	7.50	%	 	Fixed	 	 	2,100,683	 	 	 	1,967,122	 	 	 	1,755,939	 	 	May-11
	Nexpak B. V. (Helmond, NT)
	 	 	6.41	%	 	Fixed	 	 	4,813,400	 	 	 	5,927,666	 	 	 	4,956,869	 	 	Jun-11
	Lennar Corporation (U. S. Home Corporation)
	 	 	7.42	%	 	Fixed	 	 	5,000,000	 	 	 	4,750,508	 	 	 	4,416,000	 	 	Jul-11
	Metaldyne Company LLC
	 	 	7.48	%	 	Fixed	 	 	16,700,000	 	 	 	15,877,554	 	 	 	14,766,439	 	 	Jul-11
	Special Devices, Inc.
	 	 	7.87	%	 	Fixed	 	 	17,500,000	 	 	 	16,710,790	 	 	 	15;627,595	 	 	Jul-11
	Gibson Guitar Corporation (82.5%)
	 	 	7.49	%	 	Fixed	 	 	8,250,000	 	 	 	7,851,135	 	 	 	7,296,470	 	 	Aug-11
	Collins & Aikman Corporation
	 	 	7.35	%	 	Fixed	 	 	17,000,000	 	 	 	15,722,179	 	 	 	13,778,139	 	 	Oct-11
	DCI Holdings, Inc (New Creative Enterprises)
	 	 	7.35	%	 	Fixed	 	 	10,000,000	 	 	 	9,520,640	 	 	 	8,814,694	 	 	Oct-11
	Del Monte Corporation (50%)
	 	 	7.35	%	 	Fixed	 	 	6,062,500	 	 	 	5,606,737	 	 	 	4,927,386	 	 	Oct-11
	Jen-Coat
	 	 	7.30	%	 	Fixed	 	 	7,150,000	 	 	 	6,803,511	 	 	 	6,294,530	 	 	Oct-11
	Applied Power, Inc.
	 	 	7.10	%	 	Fixed	 	 	17,500,000	 	 	 	16,131,974	 	 	 	14,076,622	 	 	Nov-11
	24 Hour Fitness Worldwide (UT)
	 	 	7.50	%	 	Fixed	 	 	3,293,647	 	 	 	3,084,239	 	 	 	2,709,656	 	 	Nov-11
	Atrium Companies (NC, PA)
	 	 	7.25	%	 	Fixed	 	 	14,000,000	 	 	 	13,341,199	 	 	 	12,308,814	 	 	Dec-11
	PETsMART, Inc. (70%)
	 	 	7.70	%	 	Fixed	 	 	30,187,500	 	 	 	28,901,573	 	 	 	26,840,151	 	 	Dec-11
	Orbseal
	 	 	7.25	%	 	Fixed	 	 	6,175,000	 	 	 	5,884,421	 	 	 	5,429,066	 	 	Dec-11
	Sunland Distribution
	 	 	7.50	%	 	Fixed	 	 	5,426,070	 	 	 	5,081,083	 	 	 	4,451,784	 	 	Dec-11
	Perkin Elmer Inc. 1
	 	 	6.09	%	 	Fixed	 	 	18,148,874	 	 	 	21,740,790	 	 	 	15,712,984	 	 	Dec-11
	Lincoln Technical Institute, Inc.
	 	 	7.58	%	 	Fixed	 	 	6,300;000	 	 	 	5,832,850	 	 	 	5,063,675	 	 	Jan-12
	Gerber Scientific
	 	 	7.54	%	 	Fixed	 	 	12,500,000	 	 	 	11,957,463	 	 	 	11,066,232	 	 	Jan-12
	Nortel Networks Limited
	 	 	7.35	%	 	Fixed	 	 	30,000,000	 	 	 	28,642,452	 	 	 	26,433,481	 	 	Jan-12
	Best Buy (37%)
	 	 	7.49	%	 	Fixed	 	 	10,545,000	 	 	 	9,815,020	 	 	 	8,580,131	 	 	Feb-12
	Sandwich Bancorp/Compass Bank
	 	 	7.50	%	 	Fixed	 	 	1,626.518	 	 	 	1,523,104	 	 	 	1,327,084	 	 	Feb-12
	24 Hour Fitness Worldwide (MO)
	 	 	7.53	%	 	Fixed	 	 	3,800,000	 	 	 	3,643,740	 	 	 	3,367,245	 	 	Mar-12
	PW Eagle, Inc.
	 	 	7.60	%	 	Fixed	 	 	8,200,000	 	 	 	7,868,154	 	 	 	7,278,802	 	 	Mar-12
	Stellex Paragon / Stellex Monitor
	 	 	7.50	%	 	Fixed	 	 	10,939,074	 	 	 	10,243,572	 	 	 	8,900,190	 	 	Mar-12
	Childtime Childcare, Inc.
	 	 	7.50	%	 	Fixed	 	 	6,871,863	 	 	 	6,434,952	 	 	 	5,591,046	 	 	Mar-12
	Heainer Tire Group
	 	 	8.09	%	 	Fixed	 	 	8,750,000	 	 	 	8,439,901	 	 	 	7,854,353	 	 	Apr-12
	Newpark Resources, Inc.
	 	 	7.50	%	 	Fixed	 	 	2,530,572	 	 	 	2,369,680	 	 	 	2,053,078	 	 	Apr-12

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Interest	 	Fixed/	 		 	 	9-30-06	 	 	Balloon	 	Maturity
	Tenant/Lease Guarantor	 	Rate	 	Variable	 	Original Balance	 	Balance	 	Payment	 	Date
	 
	R.J. Tower Corporation (Tower Automotive)
	 	 	7.89	%	 	Fixed	 	 	19,878,130	 	 	 	19,173,913	 	 	 	17,803,805	 	 	May-12
	Rave Reviews
	 	 	7.50	%	 	Fixed	 	 	4,399,119	 	 	 	4,119,425	 	 	 	3,558,846	 	 	May-12
	Meridian Automotive Systems
	 	 	7.50	%	 	Fixed	 	 	7,316,265	 	 	 	6,851,100	 	 	 	5,901,714	 	 	Jun-12
	Katun Corporation (IA, MN)
	 	 	7.15	%	 	Fixed	 	 	19,000,000	 	 	 	18,236,949	 	 	 	16,664,292	 	 	Aug-12
	Sitgan Containers Corporation
	 	 	7.50	%	 	Fixed	 	 	7,236,811	 	 	 	6,776,698	 	 	 	5,803,527	 	 	Aug-12
	International Garden Products, Inc.
	 	 	7.50	%	 	Fixed	 	 	6,660,000	 	 	 	6,384,317	 	 	 	5,790,920	 	 	Sep-12
	Vermont Teddy Bear Co., Inc.
	 	 	6.75	%	 	Fixed	 	 	2,909,940	 	 	 	2,402,810	 	 	 	1,348,051	 	 	Sep-12
	Career Education Corporation (Allentown Bus. School)
(4)
	 	 	6.29	%	 	Variable	 	 	12,500,000	 	 	 	11,503,395	 	 	 	10,049,929	 	 	Oct-12
	TruServ Corporation (50%)
	 	 	5.83	%	 	Fixed	 	 	13,675,708	 	 	 	13,033,167	 	 	 	11,561,872	 	 	Jan-13
	TruServ Corporation (50%)
	 	 	5.83	%	 	Fixed	 	 	10,553,156	 	 	 	10,357,071	 	 	 	9,187,877	 	 	Jan-13
	TruServ Corporation (50%)
	 	 	5.83	%	 	Fixed	 	 	13,775,024	 	 	 	13,142,558	 	 	 	11,644,637	 	 	Feb-13
	U-Haul International/Mercury Partners, LP (U-Haul)
(11.54%)
	 	 	6.45	%	 	Fixed	 	 	21,118,200	 	 	 	20,313,855	 	 	 	16,652,089	 	 	May-14
	CheckFree Corporation (50°’0)
	 	 	6.18	%	 	Fixed	 	 	15,000,000	 	 	 	15,000,000	 	 	 	13,367,848	 	 	Jun-16
	Consolidated Theater
	 	 	6.20	%	 	Fixed	 	 	12,000,000	 	 	 	11,970,475	 	 	 	9,3881039	 	 	Jul-16
	Builder’s FirstSource, Inc. (GA, O1-I, VA) (60%)
	 	 	7.57	%	 	Fixed	 	 	4,560,000	 	 	 	4,248,360	 	 	 	2,968,790	 	 	Mar-17
	Carrefour France SAS (1) (2) (6)
	 	 	6.28	%	 	Fixed	 	 	84,655,360	 	 	 	94,787,173	 	 	 	39,728,521	 	 	Apr-17
	BLP Group PLC (5)
lp Group PLC (5)
	 	 	6.48	%	 	Variable	 	 	5,548,000	 	 	 	6,649,603	 	 	 	4,078,523	 	 	Jan-21
	Katun Corporation (Gorinchem, NT) (1)
	 	 	6.50	%	 	Fixed	 	 	5,486,000	 	 	 	6,510,213	 	 	 	3,024,185	 	 	Jun-22
	Universal Technical Institute, Inc. (NASCAR)
	 	 	6.23	%	 	Fixed	 	 	6,700,000	 	 	 	6,126,054	 	 	 	—	 	 	Aug-23
	Waddington North America (expansion)
	 	 	8.01	%	 	Fixed	 	 	11,125,000	 	 	 	10,314,777	 	 	 	927,518	 	 	Jul-26
	Builders FirstSource, Inc. (NQ
	 	 	6.21	%	 	Fixed	 	 	6,500,000	 	 	 	6,043,944	 	 	 	305,863	 	 	Oct-27
	Total Limited Recourse Mortgage Debt.
	 	 	 	 	 	 	 	 	 	$	946,545,740	 	 	$	896,545,237	 	 	$	740,493,645-	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

 

			
	(1)	 	Current balance based on an exchange rate of 1.2688 USD/EUR at September 30, 2006

	 
	(2)	 	Interest rate reflects weighted average for tranches with common, maturity date
	 
	(3)	 	Dick’s Sporting Goods announced its completed acquisition of Galyan’s Trading Co. on July
29, 2004
	 
	(4)	 	Indicated balloon payment is an estimate

	 
	(5)	 	Current balance based on an exchange rate of 1.8726 USD/GBP at September 30, 2006
	 
	(6)	 	Represents original mortgage and expansion

 

 

SCHEDULE 3.6

DISCLOSED MATTERS

None.

 

 

Schedule 4.1(f)

Transactions not in the Ordinary Clause

	1.	 	The Company paid a dividend of $0.1919 per share, for a. total of approximately
$13,106,805, on January 15, 2006.

	2.	 	The Company paid a dividend of $0.1924 per share, for a total of approximately
$13,167,117, on April 15, 2006.

	3.	 	The Company paid a dividend of $0.1929 per share and a special dividend of
$0.45 per share, for a total of approximately $44,054,373; on July 15, 2006.

	4.	 	The Company paid a dividend of $0.1929 per share, for a total of approximately
$13,304,127, on October 15, 2006.

	5.	 	The Company will pay a special dividend of $0.04 per share, for a total of
approximately $2,759,000, on or about December 15, 2006.

J-9

 

Exhibit C

FORM OF GUARANTY*

     THIS GUARANTY dated as of                      ___, 2006 executed and delivered by each of the undersigned
and the other Persons from time to time party hereto pursuant to the execution and delivery of an
Accession Agreement in the form of Annex I hereto (all of the undersigned, together with such other
Persons each a “Guarantor” and collectively, the “Guarantors”) in favor of (a) WELLS FARGO BANK,
NATIONAL ASSOCIATION, in its capacity as Administrative Agent (the “Administrative Agent”) for the
Lenders under that certain Credit Agreement dated as of November 30, 2006 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among
CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED (the “Borrower”), the financial institutions party
thereto (the “Lenders”), the Administrative Agent, and the other parties thereto, and (b) the
LENDERS.

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

     WHEREAS, each Guarantor is owned or controlled by the Borrower, or is otherwise an Affiliate
of the Borrower;

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

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

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

 

	*	 	As of the date of filing of this 10-K, a guaranty in substantially the same form as this
Form of Guaranty has been executed and entered into on behalf of Wells Fargo Bank, National
Association and the lenders by Best (CA) QRS 14-4, Inc., Truck
(IN) QRS 14-3, Inc., DELMO (PA) QRS 12-10, NUTRA (TX) QRS 12-39, Inc., Meta (CA) QRS
14-6, Inc., Film (FL) QRS 14-44, Inc., Projector (FL) QRS 14-45, Inc., Tel (VA) QRS 12-15, Inc. and
Bandwidth (UT) QRS 14-58, Inc.

C-1 

 

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

     Section 1. Guaranty. Each Guarantor, jointly and severally with each other
Guarantor, hereby absolutely, irrevocably and unconditionally guaranties the due and punctual
payment and performance when due, whether at stated maturity, by acceleration or otherwise, of all
of the following (collectively referred to as the “Guarantied Obligations”): (a) all indebtedness
and obligations owing by the Borrower to any Lender or the Administrative Agent under or in
connection with the Credit Agreement and any other Loan Document to which the Borrower is a party,
including without limitation, the repayment of all principal of the Revolving Loans, the
reimbursement of the LC Disbursements and the payment of all interest, fees, charges, reasonable
attorneys’ fees and other amounts payable to any Lender or the Administrative Agent thereunder or
in connection therewith; (b) any and all extensions, renewals, modifications, amendments or
substitutions of the foregoing; (c) all expenses, including, without limitation, reasonable
attorneys’ fees and disbursements, that are incurred by the Lenders and the Administrative Agent in
the enforcement of any of the foregoing or any obligation of such Guarantor hereunder and (d) all
other Obligations.

     Section 2. Guaranty of Payment and Not of Collection. This Guaranty is a guaranty of
payment, and not of collection, and a debt of each Guarantor for its own account. Accordingly, the
Lenders and the Agent shall not be obligated or required before enforcing this Guaranty against any
Guarantor: (a) to pursue any right or remedy the Lenders or the Administrative Agent may have
against the Borrower, any other Loan Party or any other Person or commence any suit or other
proceeding against the Borrower, any other Loan Party or any other Person in any court or other
tribunal; (b) to make any claim in a liquidation or bankruptcy of the Borrower, any other Loan
Party or any other Person; or (c) to make demand of the Borrower, any other Loan Party or any other
Person or to enforce or seek to enforce or realize upon any collateral security held by the Lenders
or the Administrative Agent which may secure any of the Guarantied Obligations.

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

C-2 

 

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

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

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

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

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

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

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

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

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

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

     Section 4. Action with Respect to Guarantied Obligations. The Lenders and the
Administrative Agent may, at any time and from time to time, without the consent of, or notice to,
any Guarantor, and without discharging any Guarantor from its obligations hereunder, take any and
all actions described in Section 3. and may otherwise: (a) amend, modify, alter or supplement the
terms of any of the Guarantied Obligations, including, but not limited to, extending or shortening
the time of payment of any of the Guarantied Obligations or changing the interest rate that may
accrue on any of the Guarantied Obligations; (b) amend, modify, alter or supplement the Credit
Agreement or any other Loan Document; (c) sell, exchange, release or otherwise deal with all, or
any part, of any collateral securing any of the Obligations; (d) release any Loan Party or other
Person liable in any manner for the payment or collection of the Guarantied Obligations; (e)
exercise, or refrain from exercising, any rights against the Borrower, any other Loan Party or any
other Person; and (f) apply any sum, by whomsoever paid or however realized, to the Guarantied
Obligations in such order as the Lenders shall elect.

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

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

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

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

     Section 9. Reinstatement of Guarantied Obligations. If claim is ever made on the
Administrative Agent or any Lender for repayment or recovery of any amount or amounts received in
payment or on account of any of the Guarantied Obligations, and the Administrative Agent or such
Lender repays all or part of said amount by reason of (a)

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any judgment, decree or order of any court or administrative body of competent jurisdiction, or (b)
any settlement or compromise of any such claim effected by the Administrative Agent or such Lender
with any such claimant (including the Borrower or a trustee in bankruptcy for the Borrower), then
and in such event each Guarantor agrees that any such judgment, decree, order, settlement or
compromise shall be binding on it, notwithstanding any revocation hereof or the cancellation of the
Credit Agreement, any of the other Loan Documents, or any other instrument evidencing any liability
of the Borrower, and such Guarantor shall be and remain liable to the Administrative Agent or such
Lender for the amounts so repaid or recovered to the same extent as if such amount had never
originally been paid to the Administrative Agent or such Lender.

     Section 10. Subrogation. Upon the making by any Guarantor of any payment hereunder
for the account of the Borrower, such Guarantor shall be subrogated to the rights of the payee
against the Borrower; provided, however, that such Guarantor shall not enforce any
right or receive any payment by way of subrogation or otherwise take any action in respect of any
other claim or cause of action such Guarantor may have against the Borrower arising by reason of
any payment or performance by such Guarantor pursuant to this Guaranty, unless and until all of the
Guarantied Obligations have been indefeasibly paid and performed in full. If any amount shall be
paid to such Guarantor on account of or in respect of such subrogation rights or other claims or
causes of action, such Guarantor shall hold such amount in trust for the benefit of the
Administrative Agent and the Lenders and shall forthwith pay such amount to the Administrative
Agent to be credited and applied against the Guarantied Obligations, whether matured or unmatured,
in accordance with the terms of the Credit Agreement or to be held by the Administrative Agent as
collateral security for any Guarantied Obligations existing.

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

     Section 12. Set-off. In addition to any rights now or hereafter granted under any of
the other Loan Documents or applicable law and not by way of limitation of any such rights, each
Guarantor hereby authorizes the Administrative Agent and each Lender, at any time while an Event of
Default exists, without any prior notice to such Guarantor or to any other Person, any such notice
being hereby expressly waived, but in the case of a Lender subject to receipt of the prior written
consent of the Administrative Agent exercised in its sole discretion, to set off and to appropriate
and to apply any and all deposits (general or special, including, but not limited to, indebtedness
evidenced by certificates of deposit, whether matured or unmatured) and any other indebtedness at
any time held or owing by the Administrative Agent, such Lender or any affiliate of the
Administrative Agent or such Lender, to or for the credit or the account of such

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Guarantor against and on account of any of the Guarantied Obligations, although such obligations
shall be contingent or unmatured. Each Guarantor agrees, to the fullest extent permitted by
applicable law, that any Participant may exercise rights of setoff or counterclaim and other rights
with respect to its participation as fully as if such Participant were a direct creditor of such
Guarantor in the amount of such participation.

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

     Section 14. Avoidance Provisions. It is the intent of each Guarantor, the
Administrative Agent and the Lenders that in any Proceeding (as defined in Section 29(a)), such
Guarantor’s maximum obligation hereunder shall equal, but not exceed, the maximum amount which
would not otherwise cause the obligations of such Guarantor hereunder (or any other obligations of
such Guarantor to the Administrative Agent and the Lenders) to be avoidable or unenforceable
against such Guarantor in such Proceeding as a result of applicable law, including without
limitation, (a) Section 548 of the Bankruptcy Code of 1978, as amended (the “Bankruptcy Code”) and
(b) any state fraudulent transfer or fraudulent conveyance act or statute applied in such
Proceeding, whether by virtue of Section 544 of the Bankruptcy Code or otherwise. The applicable
laws under which the possible avoidance or unenforceability of the obligations of such Guarantor
hereunder (or any other obligations of such Guarantor to the Administrative Agent and the Lenders)
shall be determined in any such Proceeding are referred to as the “Avoidance Provisions”.
Accordingly, to the extent that the obligations of any Guarantor hereunder would otherwise be
subject to avoidance under the Avoidance Provisions, the maximum Guarantied Obligations for which
such Guarantor shall be liable hereunder shall be reduced to that amount which, as of the time any
of the Guarantied Obligations is deemed to have been incurred under the Avoidance Provisions, would
not cause the obligations of any Guarantor hereunder (or any other obligations of such Guarantor to
the Administrative Agent and the Lenders), to be subject to avoidance under the Avoidance
Provisions. This Section is intended solely to preserve the rights of the Administrative Agent and
the Lenders hereunder to the maximum extent that would not cause the obligations of any Guarantor
hereunder to be subject to avoidance under the Avoidance Provisions, and no Guarantor or any other
Person shall have any right or claim under this Section as against the Administrative Agent and the
Lenders that would not otherwise be available to such Person under the Avoidance Provisions.

     Section 15. Information. Each Guarantor assumes all responsibility for being and
keeping itself informed of the financial condition of the Borrower and the other Loan Parties, and
of all other circumstances bearing upon the risk of nonpayment of any of the

C-6 

 

Guarantied Obligations and the nature, scope and extent of the risks that such Guarantor assumes
and incurs hereunder, and agrees that neither the Administrative Agent nor any Lender shall have
any duty whatsoever to advise any Guarantor of information regarding such circumstances or risks.

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

     SECTION 17. WAIVER OF JURY TRIAL.

     (a) EACH GUARANTOR, AND EACH OF THE ADMINISTRATIVE AGENT AND THE LENDERS BY ACCEPTING THE
BENEFITS HEREOF, ACKNOWLEDGES THAT ANY DISPUTE OR CONTROVERSY BETWEEN SUCH GUARANTOR, THE
ADMINISTRATIVE AGENT OR ANY OF THE LENDERS WOULD BE BASED ON DIFFICULT AND COMPLEX ISSUES OF LAW
AND FACT AND WOULD RESULT IN DELAY AND EXPENSE TO THE PARTIES. ACCORDINGLY, TO THE EXTENT
PERMITTED BY APPLICABLE LAW, EACH OF THE GUARANTORS, THE LENDERS AND THE ADMINISTRATIVE AGENT
HEREBY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE IN ANY
COURT OR TRIBUNAL IN WHICH AN ACTION MAY BE COMMENCED BY OR AGAINST ANY PARTY HERETO ARISING OUT OF
THIS GUARANTY, ANY OTHER LOAN DOCUMENT OR BY REASON OF ANY OTHER SUIT, CAUSE OF ACTION OR DISPUTE
WHATSOEVER BETWEEN OR AMONG EACH OF THE GUARANTORS, THE ADMINISTRATIVE AGENT OR ANY OF THE LENDERS
OF ANY KIND OR NATURE.

     (b) EACH GUARANTOR, AND EACH OF THE ADMINISTRATIVE AGENT AND THE LENDERS BY ACCEPTING THE
BENEFITS HEREOF, HEREBY AGREES THAT THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK
COUNTY AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND ANY
APPELLATE COURT FROM ANY THEREOF, SHALL HAVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR
DISPUTES BETWEEN OR AMONG THE GUARANTORS, THE ADMINISTRATIVE AGENT OR ANY OF THE LENDERS,
PERTAINING DIRECTLY OR INDIRECTLY TO THIS GUARANTY, OR ANY OTHER LOAN DOCUMENT OR TO ANY MATTER
ARISING HEREFROM OR THEREFROM. EACH GUARANTOR AND EACH OF THE LENDERS EXPRESSLY SUBMITS AND
CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED IN SUCH COURTS.
EACH GUARANTOR HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS AND COMPLAINT, OR OTHER PROCESS OR
PAPERS ISSUED THEREIN, AND AGREES THAT SERVICE OF SUCH SUMMONS AND COMPLAINT, OR OTHER PROCESS OR
PAPERS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL

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ADDRESSED TO SUCH GUARANTOR AT ITS ADDRESS FOR NOTICES PROVIDED FOR HEREIN. SHOULD A GUARANTOR
FAIL TO APPEAR OR ANSWER ANY SUMMONS, COMPLAINT, PROCESS OR PAPERS SO SERVED WITHIN THIRTY DAYS
AFTER THE MAILING THEREOF, SUCH GUARANTOR SHALL BE DEEMED IN DEFAULT AND AN ORDER AND/OR JUDGMENT
MAY BE ENTERED AGAINST IT AS DEMANDED OR PRAYED FOR IN SUCH SUMMONS, COMPLAINT, PROCESS OR PAPERS.
EACH PARTY FURTHER WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH
ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN
INCONVENIENT FORUM AND EACH AGREES NOT TO PLEAD OR CLAIM THE SAME. THE CHOICE OF FORUM SET FORTH
IN THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE THE BRINGING OF ANY ACTION BY THE ADMINISTRATIVE
AGENT OR ANY LENDER OR THE ENFORCEMENT BY THE ADMINISTRATIVE AGENT OR ANY LENDER OF ANY JUDGMENT
OBTAINED IN SUCH FORUM IN ANY OTHER APPROPRIATE JURISDICTION.

     (c) THE PROVISIONS OF THIS SECTION HAVE BEEN CONSIDERED BY EACH PARTY WITH THE ADVICE OF
COUNSEL AND WITH A FULL UNDERSTANDING OF THE LEGAL CONSEQUENCES THEREOF, AND SHALL SURVIVE THE
PAYMENT OF THE LOANS AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER THE OTHER LOAN DOCUMENTS, THE
TERMINATION OR EXPIRATION OF ALL LETTERS OF CREDIT AND THE TERMINATION OF THIS GUARANTY.

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

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

     Section 20. Termination. This Guaranty, subject to Section 9, shall remain in full
force and effect with respect to each Guarantor until indefeasible payment in full of the
Guarantied Obligations and the other Obligations and the termination or cancellation of the Credit
Agreement in accordance with its terms.

C-8 

 

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

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

     Section 23. Amendments. This Guaranty may not be amended except in writing signed by
the Administrative Agent (acting with the requisite consent of the Lenders as provided in the
Credit Agreement) and each Guarantor.

     Section 24. Payments. All payments to be made by any Guarantor pursuant to this
Guaranty shall be made in Dollars, in immediately available funds to the Administrative Agent at
such location for payment as Administrative Agent may notify such Guarantor, not later than 11:00
a.m. New York time, on the date one Business Day after demand therefor.

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

C-9 

 

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

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

     Section 28. Limitation of Liability. Neither the Administrative Agent nor any Lender,
nor any affiliate, officer, director, employee, attorney, or agent of the Administrative Agent or
any Lender, shall have any liability with respect to, and each Guarantor hereby waives, releases,
and agrees not to sue any of them upon, any claim for any special, indirect, incidental, or
consequential damages suffered or incurred by a Guarantor in connection with, arising out of, or in
any way related to, this Guaranty or any of the other Loan Documents, or any of the transactions
contemplated by this Guaranty, the Credit Agreement or any of the other Loan Documents. Each
Guarantor hereby waives, releases, and agrees not to sue the Administrative Agent or any Lender or
any of the Administrative Agent’s or any Lender’s affiliates, officers, directors, employees,
attorneys, or agents for punitive damages in respect of any claim in connection with, arising out
of, or in any way related to, this Guaranty, the Credit Agreement or any of the other Loan
Documents, or any of the transactions contemplated by the Credit Agreement or financed thereby.

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

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

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

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[Signatures on next page]

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

	 	 	 	 	 	 	 
	 	 	[GUARANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices for all Guarantors:	 	 
	 
	 	 	 	 	 	 
	 	 	c/o W.P. Carey & Co. LLC

50 Rockerfeller Plaza, New York

New York, New York 10020

Attention: Mark DeCesaris

Telecopier: 212-492-8922

Telephone: 212-492-1140	 	 

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ANNEX I

FORM OF ACCESSION AGREEMENT

     THIS ACCESSION AGREEMENT dated as of                     , ___, executed and delivered by
                                                            , a                     
                     (the “New Guarantor”), in favor of (a) WELLS FARGO BANK,
NATIONAL ASSOCIATION, in its capacity as Administrative Agent (the “Administrative Agent”) for the
Lenders under that certain Credit Agreement dated as of                     , 2006 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among
Corporate Property Associates 14 Incorporated (the “Borrower”), the financial institutions party
thereto as the Lenders, the Administrative Agent, and the other parties thereto, and (b) the
Lenders.

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

     WHEREAS, the New Guarantor is owned or controlled by the Borrower or is otherwise an Affiliate
of the Borrower;

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

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

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

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

     Section 1. Accession to Guaranty. The New Guarantor hereby agrees that it is a
“Guarantor” under the Guaranty and assumes all obligations of a “Guarantor” thereunder, all as if
the New Guarantor had been an original signatory to the Guaranty. Without limiting the generality
of the foregoing, the New Guarantor hereby:

C-13 

 

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

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

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

     SECTION 2. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE
FULLY PERFORMED, IN SUCH STATE.

     Section 3. Definitions. Capitalized terms used herein and not otherwise defined
herein shall have their respective defined meanings given them in the Credit Agreement.

[Signatures on Next Page]

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     IN WITNESS WHEREOF, the New Guarantor has caused this Accession Agreement to be duly executed
and delivered under seal by its duly authorized officers as of the date first written above.

	 	 	 	 	 	 	 
	 	 	[NEW GUARANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	(CORPORATE SEAL)	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	c/o W.P. Carey & Co. LLC 

50 Rockerfeller Plaza, New York

New York, New York

Attention: Mark DeCesaris 

Telecopier: 212-492-8922

Telephone: 212-492-1140	 	 

Accepted:

     WELLS FARGO BANK, NATIONAL

     ASSOCIATION, as Administrative Agent

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 

C-15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]