Page

SECTION 1. DEFINITIONS

1

1.1

Definitions

1

1.2

Rules of Construction

28

SECTION 2. AMOUNTS AND TERMS OF LOANS; project funding

29

2.1

Term Loan; Project Funding

29

2.2

Interest and Applicable Margins

38

2.3

Fees

40

2.4

Payments

41

2.5

Prepayments

41

2.6

Maturity

42

2.7

Loan Accounts

42

2.8

Yield Protection

43

2.9

Taxes

44

SECTION 3. CONDITIONS TO LOANS

46

3.1

Conditions to Initial Advance

46

3.2

Conditions to Advances

48

3.3

Conditions to Final Advance

50

SECTION 4. REPRESENTATIONS AND WARRANTIES

51

4.1

Organization, Powers, Capitalization and Good Standing

51

4.2

Disclosure

51

4.3

No Material Adverse Effect

52

4.4

No Conflict

52

4.5

Financial Statements and Projections

52

4.6

Solvency

52

4.7

Use of Proceeds; Margin Regulations

52

4.8

Brokers

53

4.9

Compliance with Laws

53

4.10

Intellectual Property

53

4.11

Investigations, Audits, Etc

53

4.12

Employee Matters

53

4.13

Litigation; Adverse Facts

53

4.14

Ownership of Property; Liens

54

4.15

Environmental Matters

54

4.16

ERISA

54

4.17

Deposit and Disbursement Accounts

55

4.18

Agreements and Other Documents

55

4.19

Insurance

55

4.20

Taxes and Tax Returns

55

4.21

Project Construction.

56

4.22

Certificate of Occupancy; Licenses

57

SECTION 5. AFFIRMATIVE COVENANTS

58

5.1

Compliance With Laws and Contractual Obligations

58

5.2

Insurance

58

5.3

Inspection; Consultants; Lender Meeting

59

5.4

Organizational Existence

59

5.5

Environmental Matters

59

5.6

Landlords Agreements, Mortgagee Agreements, Bailee Letters and Real Estate Purchases

60

5.7

Further Assurances

60

5.8

Payment of Taxes

60

5.9

Cash Management Systems

61

5.10

Project Construction

61

5.11

Shortfalls

64

5.12

Maintenance of Assets.

64

SECTION 6. NEGATIVE COVENANTS

65

6.1

Indebtedness

65

6.2

Liens and Related Matters

65

6.3

Investments

66

6.4

Contingent Obligations

66

6.5

Restricted Payments

67

6.6

Restriction on Fundamental Changes

67

6.7

Disposal of Assets or Subsidiary Stock

67

6.8

Transactions with Affiliates

68

6.9

Conduct of Business; Use of Property

68

6.10

Fiscal Year

68

6.11

Press Release; Public Offering Materials

68

6.12

Subsidiaries

69

6.13

Deposit Accounts

69

6.14

ERISA

69

6.15

Sale-Leasebacks

69

SECTION 7. FINANCIAL COVENANTS/REPORTING

69

7.1

Financial Covenants

69

7.2

Financial Statements and Other Reports

71

7.3

Accounting Terms; Utilization of GAAP for Purposes of Calculations Under Agreement

74

SECTION 8. DEFAULT, RIGHTS AND REMEDIES

74

8.1

Event of Default

74

8.2

Suspension or Termination of Term Loan Commitment

76

8.3

Acceleration and other Remedies

76

8.4

Construction Related Remedies

77

8.5

Performance by Agent

78

8.6

Application of Proceeds

78

SECTION 9. ASSIGNMENT AND PARTICIPATION

79

9.1

Assignment and Participations

79

9.2

Agent

80

9.3

Set Off and Sharing of Payments

85

9.4

Disbursement of Funds

85

9.5

Disbursements of Advances; Payment

86

SECTION 10. MISCELLANEOUS

87

10.1

Indemnities

87

10.2

Amendments and Waivers

87

10.3

Notices

88

10.4

Failure or Indulgence Not Waiver; Remedies Cumulative

89

10.5

Marshaling; Payments Set Aside

89

10.6

Severability

89

10.7

Lenders Obligations Several; Independent Nature of Lenders Rights

89

10.8

Headings

90

10.9

Applicable Law

90

10.10

Successors and Assigns

90

10.11

No Fiduciary Relationship; Limited Liability; Retention of Construction Consultant

90

10.12

Subrogation Rights of Agent and Lenders

91

10.13

Construction

91

10.14

Confidentiality

91

10.15

CONSENT TO JURISDICTION

91

10.16

WAIVER OF JURY TRIAL

92

10.17

Survival of Warranties and Certain Agreements

92

10.18

Entire Agreement

92

10.19

Counterparts; Effectiveness

92

10.20

Replacement of Lenders

92

10.21

Delivery of Termination Statements and Mortgage Releases

94

10.22

Subordination of Intercompany Debt

94

Annex A

-

Pro Rata Shares and Term Loan Commitment Amounts

Annex B

-

Closing Checklist

Annex C

-

Pro Forma

Annex D

-

Lenders Bank Accounts

Annex E

-

Compliance and Excess Cash Flow Certificate

Exhibit 1.1(a)

-

Form of Architect Consent

Exhibit 1.1(c)

-

Form of Borrower Final Completion Certificate

Exhibit 1.1(e)

-

Form of Developer Consultant Consent

Exhibit 1.1(f)

-

Form of Engineer Consent

Exhibit 1.1(g)

-

Form of General Contractor Consent

Exhibit 1.1(h)